FT News Briefing Wednesday, September 18
Sep 18, 2019
The Federal Reserve plans a $75 billion cash injection to ease funding pressures, raising eyebrows in financial circles. Meanwhile, concerns grow over smart TVs leaking user data to giants like Netflix and Google. In politics, Benjamin Netanyahu struggles to secure an outright majority in Israel’s elections, leaving him vulnerable. Martin Wolf discusses how corporations can mend the economic damage caused by rentier capitalism and why these changes are crucial for democracy.
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Fed Intervention
- The Federal Reserve Bank of New York plans to inject $75 billion into the US financial system.
- This intervention aims to ease funding pressures in short-term lending markets, like repo markets.
Repo Market Fragility
- Repo markets are short-dated lending markets where banks and investors exchange cash, often for treasury collateral.
- The recent rise in repo rates indicates underlying fragility in the financial system's plumbing.
Netanyahu's Uncertain Future
- Benjamin Netanyahu failed to secure a majority for his Likud party in Israel's second election this year.
- This makes his fifth term as Prime Minister uncertain and puts his potential indictment on corruption charges in the spotlight.