Daily Brief - 21 June 2024

Fed's Barkin cautious on rate cuts amid inflation uncertainty

Thomas Barkin, President of the Federal Reserve Bank of Richmond, has stated he needs more clarity on inflation trends before considering any cuts to interest rates. He emphasized the importance of seeing sustained improvement towards the Fed's 2% inflation target before making such decisions.

Currently, the Fed's policy is considered well-positioned to manage inflation, with interest rates maintained between 5.25% and 5.5%. Barkin, a key voting member this year, believes it’s not the right time to provide specific guidance on future policy changes..

French business concerns grow as political uncertainty impacts activity

In France, business activity has slowed down unexpectedly this June, with the S&P Global's Purchasing Manager’s Index dropping to 48.2, which is below the growth-indicating threshold of 50. This decline is largely due to businesses worrying about potential drastic changes in government following President Macron's decision to call a snap parliamentary vote.

The upcoming elections have caused market turmoil, with investors and business owners expressing concerns over the economic directions proposed by political candidates.

Red Bull eyes NBA expansion with potential Las Vegas team

Red Bull GmbH, known for its energy drinks and sports team ownership, is thinking about joining the NBA by setting up a new basketball team in Las Vegas.

These early discussions are internal, focusing on the potential costs, which might exceed $4 billion. Las Vegas is keen on attracting new sports teams to enhance its appeal as a holiday spot.

Owning an NBA team would add to Red Bull’s existing sports portfolio, which includes Formula 1 teams and football clubs. The decision to move forward with the bid depends on several factors, including the outcome of the NBA’s upcoming TV rights deals.