FT News Briefing Fed’s ‘medium-term’ warning, Microsoft growth, Barclays loan provisions
Apr 30, 2020
The Federal Reserve warns of lasting economic fallout from the pandemic. Gilead's remdesivir treatment shows no significant benefits, which raises questions in the health sector. Meanwhile, Microsoft enjoys a notable surge in cloud-related revenue, showcasing resilience in tough times. Barclays faces challenges with increased provisions for bad loans, highlighting tension within investment strategies amid market volatility. These insights provide a fascinating look at current financial dynamics.
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Fed’s Warning and Actions
- The Federal Reserve kept interest rates near zero and pledged further action to combat the economic crisis.
- Chairman Jerome Powell warned of lasting medium-term economic damage and highlighted the need for more fiscal stimulus.
Microsoft's Pandemic Boost
- Microsoft saw two years' worth of digital transformation in just two months due to the pandemic.
- Increased cloud service usage offset losses in traditional software sales, leading to better-than-expected quarterly results.
Barclays' Mixed Quarter
- Barclays offset increased loan impairment provisions with strong investment banking performance.
- This seemingly vindicates CEO Jess Staley's strategy to maintain a large investment bank despite activist investor pressure.