Markets widely anticipate the Federal Reserve to cut US interest rates later this month, with officials' concerns on inflation expected to affect the pace of reducing policy next year.
Recent rate-cut optimism stems from Friday's US unemployment report, which showed that employers added a more-than-expected 227,000 jobs in November while the unemployment rate edged higher to 4.2 per cent, in line with expectations.
Despite a surge in employment, the rise in the unemployment rate and underlying data showed signs that the labour market is cooling, giving the Fed the motivation to cut rates this month.
Odds of a 25-basis point jumped following Friday's release to 87 per cent, up from 66 per cent the same time last week, according to data from the CME Group. Doing so would reduce the Fed's target range to 4.25 to 4.50 per cent, a full percentage lower since they began cutting rates in September.
Any monetary policy activity from the Federal Open Market Committee (FOMC) is expected to be mirrored by most central banks in the Gulf Co-operation Council, which follow the Fed's decisions due to currency pegs.
Economists and Fed officials generally note, however, that the rate-decision picture could change depending on hotter-than-expected inflation data. Two inflation reports are due to be released before the Fed's next meeting.
“But barring a major surprise, the FOMC is on course to cut rates once more before the year is out,” Wells Fargo economists Sarah House and Michael Pugliese wrote to clients.
Fed officials favour cautious approach
In various speaking engagements this week, several Fed officials said they favoured a gradual approach to cutting interest rates.
Fed Governor Christopher Waller gave the clearest indication of where the central bank currently stands, saying in remarks at the George Washington University on Monday that “at present I lean towards supporting” cutting rates this month. The Fed has generally moved in unanimity in recent years on monetary policy decisions.
With a December rate cut at present seen as a near-guarantee, officials and markets are turning their attention towards next year. Much of that attention remains on inflation, which has run hotter-than-expected in recent months.
“While I am pleased at how well the labour market has held up under restrictive monetary policy, I am less pleased about what the data have been telling us the past couple of months about inflation,” Mr Waller said, noting that progress on taming inflation could be “stalling”.
The Fed's preferred inflation metric rose to 2.3 per cent on an annual basis in October, up from 2.1 per cent the month before, while core inflation also rose to 2.8 per cent.
While that inflation data does not indicate a pause in easing in December, it could mean the Fed eases at a “slower pace in 2025”, Derek Tang, economist at the LHMeyer analytics firm in Washington, wrote in a note to clients.
CME Group data on Friday showed markets are anticipating two quarter-point cuts next year, anticipating higher rates likely due to the policies of the incoming Donald Trump administration.
In the run-up to the 2024 election, Mr Trump ran on policies including a mass deportation of immigrants, universal tariffs and an extension of his tax cuts that economists generally argue will increase inflation.
During a moderated session in New York on Wednesday, Fed Chair Jerome Powell said the uncertainty of Mr Trump's policies means it is too early for them to be factored into the Fed's outlook.
“Here's what we don't know about tariffs. We don't know how big they'll be. We don't know their timing and their duration. We don't know what goods will be tariff. We don't know what country's goods will be tariff. We don't know how that will play into prices, what will be the transmission into prices,” he said at the DealBook Summit.
The Fed chair also said the central bank can afford to be “a little more cautious” in its approach to cutting interest rates, owing to the strength of the US economy.
“The economy is strong, and it's stronger than we thought it was going to be in September,” he said.
Meanwhile, Fed Governor Michelle Bowman, the final official to speak before the Fed's self-imposed blackout period begins, said that inflation remains “uncomfortably” high.
“I would prefer that we proceed cautiously and gradually in lowering the policy rate as inflation remains elevated,” Ms Bowman said during a moderated discussion at the Missouri Bankers Association Executive Management on Friday.
Ms Bowman also said she believes the so-called neutral rate – the level at which interest rates are neither restricting nor stimulating the economy – has edged up. Considered to be one of the more hawkish members on the FOMC, Ms Bowman warned cutting rates too quickly could reignite inflation.
The Fed's blackout period – the window in which officials are prohibited from publicly speaking on monetary policy – begins on Saturday and runs through December 19.
The Fed is also due to release its updated economic projections and outlook for monetary policy at the conclusion of its December meeting.
The%20specs
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Killing of Qassem Suleimani
Killing of Qassem Suleimani
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Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
UAE currency: the story behind the money in your pockets
The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now
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FIGHT INFO
Men’s 60kg Round 1:
Ahmad Shuja Jamal (AFG) beat Krisada Takhiankliang (THA) - points
Hyan Aljmyah (SYR) beat Akram Alyminee (YEM) - retired Round 1
Ibrahim Bilal (UAE) beat Bhanu Pratap Pandit (IND) - TKO Round 1
Men’s 71kg Round 1:
Seyed Kaveh Soleyman (IRI) beat Abedel Rahman (JOR) - RSC round 3.
Amine Al Moatassime (UAE) walk over Ritiz Puri (NEP)
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
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Killing of Qassem Suleimani
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
UAE currency: the story behind the money in your pockets
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
