A hawkish or dovish Powell?

Federal Reserve Chair Jerome Powell may have a very tough time meeting expectations that he will double down on a hawkish policy stance when he takes the podium on Friday morning at Jackson Hole to kick off the central bank’s annual symposium. There’s an argument to be made that he needs to overshoot given the way that markets continue to “fight the Fed” by hampering the central bank’s steepest interest-rate hikes in a generation. Read more.

Central bankers including US Fed chair Jerome Powell will discuss the challenges for the global economy at the Jackson Hole economic symposium. Photo: Financial Times

US stocks rise with all eyes on Jackson Hole summit

US stocks rose on Thursday as investors braced themselves for developments from the Jackson Hole central bankers’ summit. Those moves came on the first day of the annual conference in Jackson Hole, Wyoming, where central bankers, including US Federal Reserve Chair Jerome Powell, have gathered to discuss the challenges ahead for the global economy. (Financial Times | Aug 25)

Wall Street is in limbo as investors look to Powell for guidance

The Federal Reserve chair’s speech at the Fed’s conference in Wyoming on Friday could give investors some much needed clarity on what to focus on next. Investors are bracing for Jerome H. Powell, the Federal Reserve chair, to deliver a stern warning that the bank is far from finished in its campaign to slow inflation with higher interest rates. (The New York Times | Aug 24)

Global scope of EU’s greenwashing crackdown spooks Wall Street

Global warming is, by definition, a global problem. But the worldwide scope of the EU’s latest climate change effort – designed to end the practice of describing things as greener than they really are – is provoking alarm on Wall Street. The Corporate Sustainability Reporting Directive (CSDR), agreed in principle with little fanfare earlier this summer and due to come into force from next June, compels all “large” companies that operate in the EU or have listed securities in the bloc to produce extensive new reports on the effects of their business, and of their parent companies, on the environment. (Financial Times - opinion | Aug 22)

Shrinking deficits cushion Fed's retreat from bond markets

A shrinking federal budget deficit is cushioning the Fed’s retreat from bond markets. Some analysts had wondered if stocks and bonds would be hammered by the reversal of stimulus. The opposite has happened, though it’s early yet. (The Wall Street Journal | Aug 22)

Asset managers have a self-interest in crypto’s future

While cryptocurrencies were falling, established asset managers such as Abrdn, Charles Schwab and BlackRock were hard at work looking to secure a foothold in the market. Not by investing directly in volatile cryptocurrencies, mind. Sceptics will say asset managers are scrambling to exploit an immature, speculative market, when unwary customers betting on cryptocurrencies are still vulnerable to hype or even fraud. (Financial Times - opinion | Aug 21)

Photo: Justin Sullivan | Getty Images

Spyware hunters are expanding their tool set

The surveillance-for-hire industry's powerful mobile spyware tools have gotten increasing attention lately as tech companies and governments grapple with the scale of the threat. But spyware that targets laptops and desktop PCs is extremely common in an array of cyberattacks, from state-backed espionage to financially motivated scams. Due to this growing threat, researchers from the incident response firm Volexity and Louisiana State University presented at the Black Hat security conference in Las Vegas new and refined tools that practitioners can use to catch more PC spyware in Windows 10, macOS 12, and Linux computers.

— Wired

There is an urgent need to reduce systemic cyber risks

Three things can be done to improve collective resilience.

1. More investment should be put into developing, and deploying, more secure encryption technologies.
2. Specialist auditing firms could be asked to scrutinize their clients’ data storage and cyber security practices.
3. Investors should quiz companies in which they invest more rigorously about what actions they are taking to secure their operations.

— Financial Times | opinion

CISA: Just-disclosed Palo Alto Networks firewall bug under active exploit

The US Cybersecurity and Infrastructure Security Agency is warning that a high-severity security vulnerability in Palo Alto Networks firewalls is being actively exploited in the wild. The bug tracked as CVE-2022-0028 allows attackers to hijack firewalls without authentication, in order to mount DDoS hits on their targets of choice.

— Dark Reading

Clare Fenelon says her cat Cricket parks herself in front of the screen whenever the game is on. Photo: Clare Fenelon | WSJ

Cat people are loving a new video game. So are their cats.

‘Stray,’ a videogame starring a lost orange tabby, has built a devoted fan base – of felines – since its release... ‘the little one meowed back’. Released in July, “Stray” drops players into a desolate dystopian city, which they must navigate as a lost orange tabby who has been separated from its pack. The game’s hero isn’t your average animated cat; it scratches and yawns with striking feline fidelity.

— The Wall Street Journal

Standing room-only business-class lounges are alienating flyers

Business-class lounges around the world can be standing room-only as corporate road warriors get back on planes, affluent flyers treat themselves to no-expense-spared holidays, and regular travelers pay for lounge memberships or premium credit cards that offer access to escape the hustle and bustle of airport departure halls.

— Bloomberg Businessweek

Senate report: IRS foreign bank registration 'shockingly easy'

A Senate report released Wednesday on a form of tax evasion was highly critical of the IRS for the way it handles foreign bank registration as part of the laws that govern how U.S. citizens and business entities can own foreign assets. The report said that it was “shockingly easy” to obtain a certain kind of registration number from the IRS that signifies its holder to be a valid foreign financial institution.

— The Hill