- Fed to Maintain a ‘Patient’ Stance
- Microsoft’s Profit Increased by 44%
- European Parliament Ratifies Trade Agreement with the U.K.
Fed to Maintain a ‘Patient’ Stance
Fed is expected to remain ‘patient’ at its meeting tonight as the economic outlook improves.
At the end of a two-day policy meeting on Wednesday, the Federal Open Market Committee is almost likely to maintain interest rates near zero and keep purchasing bonds at the current $120 billion monthly pace. At 2:00 p.m. in Washington, the panel will issue a statement, and Powell will hold a press conference 30 minutes later.
“The Fed is trying to convey a very dovish tone as long as the pandemic remains a threat,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC. “Until we get to that point, they are going to continue to say the economy is getting better, but we need to see more evidence. We are not out of the woods yet.”
Vishy Tirupattur of Morgan Stanley said that the Fed would be patient with the rate hike. President Powell stated in an interview on April 11 that growth and employment are responding quickly to financial and monetary support. Drawing attention to the risks related to the outlook due to the pandemic, Powell declared that the Fed would provide all kinds of support to support the economy.
According to economists surveyed by Bloomberg, the improved outlook will be underlined by the government’s report of first-quarter gross domestic product Thursday, expected to show a 6.9% increase.
Bloomberg Economics stated that the Fed would maintain its current path at its April meeting and said, “The economic outlook is improving with the effect of the ongoing vaccination process and financial incentives. For this reason, the authorities will prefer to be ‘patient’ before policy normalization.”
Microsoft’s Profit Increased by 44%
Microsoft Corp (MSFT.O) on Tuesday met analysts’ quarterly sales expectations and beat profit estimates. Still, its shares fell slightly, reflecting some skepticism about one-off benefits included in the results and high hopes after a year-long rally.
Alphabet, the parent company of Microsoft and Google, one of the U.S. technology companies, announced that its net profit and income increased in the January-March period of this year.
Considering the January-March period as the third quarter in its fiscal calendar, Microsoft announced its balance sheet.
Accordingly, the company’s revenue increased by 19% in the January-March period compared to the same period last year, reaching $41.7 billion. Microsoft earned $35 billion in revenue in the January-March period of 2020.
The company’s net profit increased by 44% in the same period, reaching 15.5 billion dollars. The net profit of the company was 10.7 billion dollars in the same period last year.
Microsoft’s earnings per share also increased from $1.40 to $2.03 during this period.
Google’s parent company, Alphabet, also shared its balance sheet for the first quarter of 2021. Accordingly, Alphabet’s revenue in the first quarter of the year increased by 34% compared to the same period last year, reaching $55.3 billion. The company announced an income of $41.2 billion in the same period of 2020.
Alphabet’s net profit rose to $17.9 billion in the first quarter, increasing 162% compared to the same period last year. Alphabet had a net profit of $6.8 billion in the first quarter of last year.
The company’s profit per share, which was $9.87 in the January-March period of last year, increased to $26.29 in the same period this year.
European Parliament Ratifies Trade Agreement with the U.K.
The European Parliament (E.P.) approved the agreement between the European Union (E.U.) and the U.K. to determine the commercial relations in the post-Brexit period.
According to the agreement, the E.U. and U.K. will not apply customs duties and quotas on goods that comply with the rules of origin; The parties will protect the environment and prioritize the fight against climate change; Social rights and workers’ rights will be protected; With a binding dispute resolution mechanism, competition will be realized under fair and equal conditions.
Fish stocks in E.U. and U.K. territorial waters will be managed jointly; England will be able to develop fishing activities; European fishermen activities will continue; The parties will compete fairly in the field of transport; Social security rights of E.U. and U.K. citizens will be coordinated; Especially against cross-border crime and terrorism, a security and judicial cooperation framework will be established.
Speaking after the European Parliament’s approval of the Brexit trade agreement between the E.U. and Britain, EU Commission President Ursula von der Leyen pointed out the importance of implementing the agreement.
Stating that she welcomes the ratification of the agreement, Ursula von der Leyen said, “The Trade and Cooperation Agreement forms the basis of a strong and close partnership with Britain. The correct and sincere implementation of the agreement is imperative.”
“Ratification of the Trade and Cooperation Agreement is a decisive step forward, but it’s far from the end of the process for business,” said Tony Danker, director-general of the Confederation of British Industry, in a statement after the European Parliament vote’s results were announced on Wednesday morning.
“The next phase is normalizing relations between the U.K. and E.U., to smooth trade and maximize the benefits of the new economic partnership.”