FT News Briefing Higher for even longer
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Apr 11, 2024 Traders are adjusting their bets as U.S. inflation rises to 3.5%, impacting expectations for interest rate cuts. KPMG faces a hefty $25 million fine linked to an exam cheating scandal. Meanwhile, Lloyds Banking Group is cutting jobs in risk management after internal reviews indicated it hindered their strategic goals. The podcast also discusses how higher interest rates are influencing borrowing costs and the evolving regulatory landscape for UK banks.
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Inflation Complicates Fed Plans
- U.S. inflation rose for the second consecutive month to 3.5%, complicating the Federal Reserve's plan for interest rate cuts.
- Markets now predict only one or two cuts this year, down from six or seven initially projected.
KPMG Fined for Cheating Scandal
- KPMG's Netherlands branch received a $25 million fine, the largest ever from the Public Company Accounting Oversight Board, for an exam cheating scandal.
- This follows a similar 2019 fine for KPMG's U.S. arm and reflects a broader ethics issue among Big Four accounting firms.
Lloyds Bank Restructures Risk Management
- Lloyds Bank is reducing its risk management staff after executives labeled the function an obstacle to their strategic transformation.
- This restructuring raises concerns about potential consequences, especially given the bank's ongoing scrutiny over customer overcharging claims.