Aurelia Butler

NAIROBI (Reuters) -Senegal’s sovereign dollar bonds fell on Friday after a government audit revealed larger debt and deficit figures than the previous administration had reported, Tradeweb data showed. Recently elected President Bassirou Diomaye Faye, who ordered the audit, blamed the previous government for releasing false figures, but it underscored the daunting task ahead for the West African nation already grappling with slower economic growth. “The announcement does sound like a credit-negative event,” said Evghenia Sleptsova, senior emerging markets economist at consultancy Oxford Economics.The dollar bonds fell by more than 2 cents in early trading before retracing the losses to bid roughly 1.3 cents lower between 73.01-85.52 cents on the dollar by 1200 GMT.The International Monetary Fund, which has $1.9 billion bailout programme with Senegal, said the government had shared initial audit findings and that it was working with them to determine appropriate next steps. The audit showed a more than 10% deficit at the end of 2023, in contrast with the roughly 5% reported by the previous government, economy minister Abdourahmane Sarr said late on Thursday.Public debt, meanwhile, averaged 76.3% of GDP, according to the audit, compared with the previously reported 65.9%, due to higher-than-published public deficits. Sarr said the concerning figures, and fear of running afoul of IMF rules, kept the government from requesting IMF cash that could have been disbursed in July. Abdoulaye Ndiaye, professor of macroeconomics and public finance at New York University’s Stern School of Business, said the audit, unprecedented in Senegal, underscored the need for “courageous choices.” “The results are troubling, and there needs to be a thorough legal investigation,” he said.The IMF had already lowered Senegal’s growth forecast for this year, and warned of a wider fiscal deficit due to slow revenue growth. Earlier this month, Faye called a snap legislative election, scheduled for Nov. 17, to try to break deadlock over a new budget and efforts to cut government waste.Still, nascent oil production, which began in June, and gas output expected by the end of the year, could boost government finances. More

NEW YORK – This was originally published in the Reuters On the Money newsletter, where we share U.S. personal finance tips and insights every other week. Sign up here to receive it for free.Even before the U.S. Federal Reserve approved its outsized half-percentage-point interest rate cut last week, financial markets started making credit cheaper for households and businesses as they bid down mortgage rates, cut corporate bond yields and chipped away at what consumers pay for personal, auto and other loans.While bonds have been a good bet for investors at the start of the Fed’s rate-cutting cycles, Treasuries already experienced a huge rally this time around. Some investors believe they’re unlikely to run much further unless the economy enters a recession.And stocks? So far they’ve been on a tear, but the long-term outlook is a little more complicated. Follow our Markets coverage here for the latest insights and news!Has the latest rate cut helped or hurt your finances? Send me your thoughts at .Life lessons: Sherri Shepherd’s path to Hollywood’s Walk of FameAs a popular talk show host, Sherri Shepherd’s job is to get celebrities to share their personal stories. But the most fascinating tale might be her own.The host of Sherri, which kicked off its new season on Monday, has come a long way from the hardscrabble early days of getting evicted from her Los Angeles apartment as she tried to make it in show business.My favorite quote from this Reuters’ interview: “I remember back in the days when my car used to get repossessed, I would be on the bus going by Hollywood Boulevard, where the Walk of Fame is located. I would look at the stars and dream that I would have a star one day. Now I’m having a ceremony for it. Never let go of that dream.”What I’m reading and watchingBananas, cars, clothes: US port labor dispute threatens products Housing market sees some relief as mortgage rates fallConsumer confidence sours on labor market jitters Monthly house prices in the US edge up in July Want an under-30-minute commute? These American cities have itSmart moves for investors after the Fed rate cuteUS accuses Visa (NYSE:V) of monopolizing debit card swipes Going solo: How to plan for retirement when you’re on your ownHoliday spending on buy now, pay later to hit record due to debt-laden shoppers Like what you’re reading? Subscribe to On The Money here.In defense of consumer staplesThe consumer staples sector has outperformed the wider market since the summer on recession worries and a shift away from pricier technology stocks. Satya Pradhuman of Cirrus Research explains why he thinks these stocks are no longer just a recession play. Watch here.An expert’s guide to retirementIf you find it hard to plan for retirement, here is a little secret: It is hard for everyone – even the world’s foremost experts on the topic.Take Christine Benz, for example. As the longtime director of personal finance and retirement planning for investment research firm Morningstar, Benz knows pretty much everything there is to know on the subject.But when her own father started experiencing cognitive decline, she assumed financial responsibilities for her parents – and was swarmed with hundreds of retirement-related challenges one cannot fully understand until experienced.So Benz wrote a book about it, where she shares these five main pointers on how to retire.A$K LAURENThanks to everyone who wrote to me about taxing Social Security and rising pet care costs! I read every single one of your emails, so keep ‘em coming.Speaking of which: Do you need to take out a student loan? Are you planning to retire in the next year? Send your money questions to , and I’ll tap my extensive source network and braintrust for expert advice.Don’t forget to subscribe to this newsletter! Even better, share it with a friend!  More

Inflation by the Fed’s targeted measure, the year-over-year rise in the personal consumption expenditures price index, was 2.2% in August, the Commerce Department reported. That’s in line with what Fed Chair Jerome Powell said he expected in a news conference after last week’s half-point cut. The big start to what’s expected to be further reductions in the policy rate ahead was aimed at bolstering what Fed policymakers see as a softening but still-solid labor market. “If the Fed wants to cut by another 50 basis points in November, the inflation data isn’t going to stand in their way,” wrote Inflation Insights Omair Sharif after the report. “In fact, the faster inflation cools, the more impetus there is for them to move faster to get to neutral.”Interest rate futures contracts now reflect a 54% chance of a half-point cut in November, versus a still-hefty 46% chance of a quarter-point cut. Either way traders are betting the policy rate – now in the 4.75%-5.00% range – will be 75 bps lower by year end, and in the 3.00%-3.25% range by mid-2025. That’s just above what most Fed policymakers see as the neutral rate where the level of borrowing costs is neither stimulating nor braking a healthy economy. More

SLF is a type of loan that the central bank offers to commercial banks to fulfill their temporary cash demand.According to the People’s Bank of China, the overnight rate was cut to 2.35%, and the seven-day and one-month rates were lowered to 2.50% and 2.85%, respectively. More

(Reuters) – Wall Street was set for a marginally higher open on Friday after data underscored the narrative that price pressures were cooling, raising expectations that the Federal Reserve’s next move might be another outsized interest rate cut.A Commerce Department report showed the personal consumption expenditure (PCE) index, the Fed’s preferred inflation measure, rose 2.2% in August on an annual basis, compared with estimates of 2.3%, as per economists polled by Reuters. On a monthly basis, it rose 0.1%.Odds that the central bank will cut rates by 50 basis points at its November meeting stood at about 53%, compared with 50% seen before the data. Those for a 25 bps reduction stand at about 47%, as per the CME Group’s (NASDAQ:CME) FedWatch Tool.Rate-sensitive growth stocks were mixed in premarket trading, as yields on short-term Treasury bonds dipped following the data. Tesla (NASDAQ:TSLA) added 1% and Alphabet (NASDAQ:GOOGL) climbed 0.3% in premarket trading, while Nvidia (NASDAQ:NVDA) and Amazon.com (NASDAQ:AMZN) were flat.”It’s a relief to have (inflation) move in the right direction and hopefully it continues going in that direction,” said Joe Saluzzi, co-head of equity trading at Themis Trading.”It really doesn’t matter whether it’s 50 bps or 25 bps. What matters is, will they continue cutting rates over the next year?”Inflation moderating towards the central bank’s 2% target gave the Fed enough room to commence its policy easing cycle with a 50 basis point rate cut last week. Ensuring that unemployment rates do not shoot up will be its focus now, with all eyes on a slew of job reports due next week.At 8:45 a.m. ET, Dow E-minis were up 90 points, or 0.21%, S&P 500 E-minis were up 10.5 points, or 0.18% and Nasdaq 100 E-minis were up 36.25 points, or 0.18%.Futures tied to the Russell 2000 index, which tracks small caps, outperformed with a 1% rise.The University of Michigan’s final September estimate on consumer sentiment and remarks from Fed Governor Michelle Bowman are also in focus on the day.Late on Thursday, Fed Governor Lisa Cook said the central bank’s rare move earlier this month could address increased “downside risks” to employment.Wall Street’s main indexes ended higher in the previous session, with the S&P 500 closing at its highest levels on record after an upbeat forecast from Micron (NASDAQ:MU) invigorated optimism around artificial intelligence. The benchmark index along with the blue-chip Dow and tech-heavy Nasdaq are on track for their third-straight week of gains.Among other stocks, Bristol Myers (NYSE:BMY) Squibb surged 3.75% after the U.S. FDA approved its schizophrenia drug.Costco Wholesale (NASDAQ:COST) dropped 1% after posing downbeat fourth-quarter revenue.Dollar General (NYSE:DG) slipped 1.9% after Citigroup downgraded to “sell” from “neutral”.U.S.-listed shares of Chinese firms such as Alibaba (NYSE:BABA) rose 1%, PDD Holdings climbed 2.5% and NetEase (NASDAQ:NTES) gained 2.1% after China’s central bank lowered interest rates and injected liquidity into the banking system, in its latest stimulus move. Miners such as Albemarle (NYSE:ALB) added 2.9% and U.S.-listed shares of BHP rose 1% after a report showed top Chinese cities Shanghai and Shenzhen are planning to lift key remaining restrictions on home purchases to attract potential buyers. More

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.2% last month after an unrevised 0.5% gain in July, the Commerce Department’s Bureau of Economic Analysis reported on Friday. Economists polled by Reuters had forecast consumer spending climbing 0.3%.Consumer spending continues to be supported by still-solid wage gains even as the labor market has slowed considerably.Annual revisions to national accounts data published on Thursday showed stronger wages and salaries growth in the second quarter than had been previously estimated. The saving rate also was higher than previously thought. Higher incomes and savings bode well for consumer spending for the rest of the year.There had been worries that consumers were drawing down savings to fund spending. Labor market jitters, with the unemployment rate rising above 4%, had raised the specter of precautionary saving, which would undermine spending.The Federal Reserve last week cut its benchmark overnight interest rate by 50 basis points to the 4.75%-5.00% range, the first reduction in borrowing costs since 2020, which Fed Chair Jerome Powell said was meant to demonstrate policymakers’ commitment to sustaining a low unemployment rate.Growth estimates for the third quarter are around a 2.9% annualized rate, with consumer spending seen matching the April-June quarter’s pace. The economy grew at a 3.0% pace in the second quarter. The personal consumption expenditures (PCE) price index rose 0.1% in August after an unrevised 0.2% gain in July. Economists had forecast PCE inflation advancing 0.1%. In the 12 months through August, the PCE price index increased 2.2% after rising 2.5% in July.Excluding the volatile food and energy components, the PCE price index increased 0.1% after an unrevised 0.2% rise in July. In the 12 months through August, core inflation advanced 2.7% after climbing 2.6% in July. The U.S. central bank tracks the PCE price measures for its 2% inflation target.Early on Friday, financial markets saw a roughly 50% chance of another half-percentage-point rate cut at the Fed’s Nov. 6-7 policy meeting, according to CME’s FedWatch tool. The odds of a 25 basis points rate reduction were around 50%.The Fed raised its policy rate by 525 basis points in 2022 and 2023. More

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