The U.S. Federal Reserve will announce plans to shrink its more than $4 trillion balance sheet in September, according to a Reuters poll of economists who also said the central bank will wait until the fourth quarter before raising rates again.
Results in the survey are in line with what Fed officials have hinted at in recent weeks, even as they are split on the outlook for inflation and how the lack of it might affect the future pace of interest rate hikes.
“The idea is that they (the Fed) announce balance sheet shrinkage at the September meeting and then hike in December. I think they have almost pre-announced those two decisions,” said Ethan Harris, head of global economics at Bank of America Merrill Lynch (NYSE:BAC).
In a poll conducted just last month, predictions were for the Fed to raise rates by September.
By Shrutee Sarkar
Netflix Inc (O:NFLX) crushed Wall Street forecasts by adding 5.2 million new streaming customers in the second quarter and predicted continued momentum as foreign subscriptions topped those in the United States, lifting its stock 10.4 percent on Monday.
Shares of the streaming-television pioneer jumped $16.82 to $178.55 in after-hours trading, beating their all-time intraday high of $166.87 on June 8.
Netflix expects foreign growth to bring its first full-year profit for overseas markets in 2017, the company said in a letter to shareholders.
At the end of June, Netflix for the first time recorded more subscribers abroad than in the United States – 52.03 million vs. 51.92 million.
By Lisa Richwine and Aishwarya Venugopal
German online fashion retailer Zalando (DE:ZALG) stumbled in its breakneck expansion across Europe in the second quarter due to capacity constraints at new warehouses, sending its shares down 7 percent.
Europe’s biggest online-only fashion retailer needs to scale up quickly to compete with e-commerce giant Amazon (O:AMZN) but preliminary quarterly sales growth of 19-21 percent undershot the Berlin-based company’s annual target.
By Emma Thomasson
Workers at Volkswagen’s MAN (DE:MANG) rejected the idea that majority-owned transmission maker Renk (F:ZARG) could be sold, with the works council saying a divestment was “not an issue”.
“We do not see any reason to divest parts of the company. Renk is and will remain part of the MAN family ,” MAN’s works council chief Saki Stimoniaris said in a statement on Tuesday.