Retail sales, small business sentiment, and other news affecting your money in the week ahead

Wall Street will be monitoring the all-important retail sales report due on Friday, especially as the holidays draw near. And a monthly survey of small business owners is scheduled for release on Tuesday. Economists forecast a big increase in consumer spendingWhat’s happening: The monthly retail sales report for November is scheduled for release on Friday, December 13. Small business owners may feel more optimisticWhat’s happening: A monthly report that measures confidence among small business o


Wall Street will be monitoring the all-important retail sales report due on Friday, especially as the holidays draw near.
And a monthly survey of small business owners is scheduled for release on Tuesday.
Economists forecast a big increase in consumer spendingWhat’s happening: The monthly retail sales report for November is scheduled for release on Friday, December 13.
Small business owners may feel more optimisticWhat’s happening: A monthly report that measures confidence among small business o
Retail sales, small business sentiment, and other news affecting your money in the week ahead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: anna-louise jackson
Keywords: news, cnbc, companies, traders, small, week, sentiment, business, affecting, owners, ahead, report, money, economy, retail, trade, sales


Retail sales, small business sentiment, and other news affecting your money in the week ahead

The record-busting rally in the U.S. stock market has taken a pause. After major benchmarks set several all-time highs in December, the S&P 500 fell nearly 2% in three days before recovering to end the week higher. Experts say trade remains “the biggest risk out there” for the stock market right now, and that’s likely to create some choppiness in the weeks ahead. That’s because there’s a December 15 deadline looming for China and the U.S. to reach a trade deal before additional U.S. tariffs on Chinese goods take effect. The coming week is likely to be busy. House Speaker Nancy Pelosi on Thursday directed the House committees investigating President Donald Trump to proceed with articles of impeachment, and the Judiciary committee is scheduled to hold a hearing Monday morning on the evidence gathered in the inquiry. The Federal Reserve also will meet for its eighth and final time this year on Tuesday and Wednesday. While surprises on either front could rattle traders, pros point out that even big news can be “a nonissue for the market.” Wall Street will be monitoring the all-important retail sales report due on Friday, especially as the holidays draw near. And a monthly survey of small business owners is scheduled for release on Tuesday. Here’s what to watch in the stock market during the week ahead — and how the news could affect your bottom line.

Economists forecast a big increase in consumer spending

What’s happening: The monthly retail sales report for November is scheduled for release on Friday, December 13. This details how much American consumers spent on things like clothing and food. Economists currently forecast the biggest month-over-month increase in spending since August. Last month’s report showed that retail sales rebounded after falling in September, though Americans cut back on buying big-ticket household items. Meanwhile, economists project that another report due Wednesday will show that average hourly earnings ticked up slightly in November. Why it matters: American consumers have been very resilient this year, even amid signs of slowing in the broader economy. Reports in the past week showed that sentiment improved to the second-best number 2019 and consumers are borrowing more money via revolving credit, like credit cards, at rates not seen since July. Traders on Wall Street track the monthly retail sales report closely because consumer spending accounts for more than two-thirds of U.S. economic growth. What it means for you: Perhaps you haven’t made any changes to your shopping habits, but what your neighbors do matters to the overall economy. What’s more, there are less than three weeks until Christmas and the start of Hanukkah — and spending during the all-important holiday shopping season accounts for about 20% of annual retail sales each year, according to the National Retail Federation.

Small business owners may feel more optimistic

What’s happening: A monthly report that measures confidence among small business owners is scheduled for release on Tuesday by the National Federation of Independent Business. This survey looks at 10 different components, like whether business owners plan to hire more workers or spend more money, and how they feel about the economy. Why it matters: Businesses with fewer than 500 workers account for almost half of private sector employment, so traders closely monitor how these business owners feel. A separate poll last week found that optimism about the future of U.S. trade policy helped lift confidence among small business owners, according to the fourth-quarter 2019 CNBC/SurveyMonkey Small Business Survey. Trade has been key to the rebound in sentiment among business owners, so there’s also a risk if China and the U.S. can’t reach a deal before additional tariffs take effect. That means traders will be keen to see if there are any clues about future readings, especially because sentiment this year has been lower, on average, than either 2017 or 2018. What it means for you: Even if you don’t work for a small business, chances are you know someone who does. Hiring plans are good to track because they reveal important clues about the overall health of the U.S. economy. If employers pull back on adding workers to their payrolls, that may make it more difficult for job seekers to find a new position. Last month’s broader jobs report showed that employers added 266,000 jobs, the most since January. The U.S. economy is nearing full employment, meaning almost everyone willing and able to work can. And it’s generally been a good year for workers.

The bottom line


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: anna-louise jackson
Keywords: news, cnbc, companies, traders, small, week, sentiment, business, affecting, owners, ahead, report, money, economy, retail, trade, sales


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‘Give gifts of money’ this holiday season, says etiquette expert

The best way to give a gift is to give people what they want, not what you think they should have, says Elaine Swann, an etiquette expert. Across all generations, money for personal spending is the No. 1 present when ranked against tangible gifts, experiences, and money for bills or experiences, according to the Zelle study, but younger people are on record as being the most excited. “Millennials have definitely changed the landscape in terms of the way we give gifts now,” says Swann. Here are s


The best way to give a gift is to give people what they want, not what you think they should have, says Elaine Swann, an etiquette expert.
Across all generations, money for personal spending is the No.
1 present when ranked against tangible gifts, experiences, and money for bills or experiences, according to the Zelle study, but younger people are on record as being the most excited.
“Millennials have definitely changed the landscape in terms of the way we give gifts now,” says Swann.
Here are s
‘Give gifts of money’ this holiday season, says etiquette expert Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: ivana pino
Keywords: news, cnbc, companies, holiday, way, prefer, perfect, spending, gifts, zelle, expert, etiquette, money, gift, season, personal, experiences


'Give gifts of money' this holiday season, says etiquette expert

During the holidays, you might feel extra pressure to shop for the perfect gift for each of your friends and family members, but if what you really want to do is skip the shopping trip and send them cash, that’s perfectly acceptable. In fact, your recipient might well prefer it.

About two-thirds of people say that they prefer the gift of money to pay for experiences, bills, or personal spending, according to a 2019 online survey of U.S. adults conducted by Early Warning Services, LLC, the network operator behind the Zelle payments network.

While giving money seems impersonal, it can be the greatest gift of all for those who need cash to cover their expenses, or for those whose idea of the perfect gift is the freedom to treat themselves.

The best way to give a gift is to give people what they want, not what you think they should have, says Elaine Swann, an etiquette expert. That can mean sending them money so that they can choose how they want to spend it.

Giving the gift of money is becoming more widely accepted, too: “It used to be a taboo thing to give money or ask for it, but it’s now becoming part of our society to give gifts of money and then to graciously accept those gifts as well,” says Swann.

Across all generations, money for personal spending is the No. 1 present when ranked against tangible gifts, experiences, and money for bills or experiences, according to the Zelle study, but younger people are on record as being the most excited. “Millennials have definitely changed the landscape in terms of the way we give gifts now,” says Swann.

Here are some guidelines for graciously giving the gift of money over the holiday season.


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: ivana pino
Keywords: news, cnbc, companies, holiday, way, prefer, perfect, spending, gifts, zelle, expert, etiquette, money, gift, season, personal, experiences


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Trump thanks Iran for releasing American grad student: ‘We can make deal’

Wang was released in Switzerland in exchange for Iranian citizen Massoud Soleimani, who was being held in an Atlanta jail over charges of violating American trade sanctions against Iran. Wang was among at least four other Americans being held in Iran. The swap comes amid growing tensions between Iran and the U.S. and massive protests in Iran. Trump has placed significant economic sanctions on Iran and withdrew from the Obama-era Iran nuclear deal. The White House confirmed the trade on Saturday


Wang was released in Switzerland in exchange for Iranian citizen Massoud Soleimani, who was being held in an Atlanta jail over charges of violating American trade sanctions against Iran.
Wang was among at least four other Americans being held in Iran.
The swap comes amid growing tensions between Iran and the U.S. and massive protests in Iran.
Trump has placed significant economic sanctions on Iran and withdrew from the Obama-era Iran nuclear deal.
The White House confirmed the trade on Saturday
Trump thanks Iran for releasing American grad student: ‘We can make deal’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: emma newburger
Keywords: news, cnbc, companies, administration, trade, releasing, student, trump, deal, white, thanks, held, wang, grad, twitter, american, iran


Trump thanks Iran for releasing American grad student: 'We can make deal'

U.S. President Donald Trump hosts a roundtable discussion with small business owners and members of his administration in the Roosevelt Room at the White House December 06, 2019 in Washington, DC.

President Donald Trump on Saturday thanked Iran for releasing an American graduate student who had been imprisoned in Tehran for over three years on charges of espionage in exchange for a prisoner held in the U.S.

“Taken during the Obama Administration (despite $150 Billion gift), returned during the Trump Administration,” the president wrote on Twitter. “Thank you to Iran on a very fair negotiation. See, we can make a deal together!”

Xiyue Wang, 38, was a Princeton University doctoral student doing research in Iran when he was arrested there in August 2016 and sentenced to 10 years in prison over suspicion of being a spy.

U.S. officials have repeatedly denied that Wang, who was held in Evin Prison on two counts of espionage, was a spy.

Wang was released in Switzerland in exchange for Iranian citizen Massoud Soleimani, who was being held in an Atlanta jail over charges of violating American trade sanctions against Iran. Soleimani was expected to be released as early as January under a plea agreement.

Wang was among at least four other Americans being held in Iran.

The swap comes amid growing tensions between Iran and the U.S. and massive protests in Iran. Trump has placed significant economic sanctions on Iran and withdrew from the Obama-era Iran nuclear deal.

The protests erupted across Iran in November in response to a 50% increase in gas prices. U.S. officials believe the demonstrations have left as many as 1,000 people dead and 7,000 imprisoned, drawing widespread global criticism.

Secretary of State Mike Pompeo said Saturday that “The United States will not rest until we bring every American detained in Iran and around the world back home to their loved ones.”

The White House confirmed the trade on Saturday with a statement from Trump, and Iran’s foreign minister, Mohammad Javad Zarif, also confirmed the deal on twitter.


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: emma newburger
Keywords: news, cnbc, companies, administration, trade, releasing, student, trump, deal, white, thanks, held, wang, grad, twitter, american, iran


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It’s possible the US economy is not ‘late cycle’ but rather just recharging

The idea that we are late in the economic and financial-market cycle is one that even most Wall Street bulls won’t dispute. Huge parts of the economy have run out of sync, at separate speeds. What about the yield curve? Whatever the answers, Jason Hunter, technical strategist at JP Morgan, notes that stocks have tended to have some of their strongest runs after an inversion, late in a cycle. “The longer-term bull cycles persisted for nearly two years after the initial [Treasury] curve inversion


The idea that we are late in the economic and financial-market cycle is one that even most Wall Street bulls won’t dispute.
Huge parts of the economy have run out of sync, at separate speeds.
What about the yield curve?
Whatever the answers, Jason Hunter, technical strategist at JP Morgan, notes that stocks have tended to have some of their strongest runs after an inversion, late in a cycle.
“The longer-term bull cycles persisted for nearly two years after the initial [Treasury] curve inversion
It’s possible the US economy is not ‘late cycle’ but rather just recharging Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: michael santoli
Keywords: news, cnbc, companies, curve, economy, late, fed, cycles, cycle, past, levels, recharging, inversion, possible, yield, treasury


It's possible the US economy is not 'late cycle' but rather just recharging

(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC’s Evening Brief, click here.) The idea that we are late in the economic and financial-market cycle is one that even most Wall Street bulls won’t dispute. After all, when the economic expansion surpasses a decade to become the longest ever and the S&P 500 has delivered a compounded return of nearly 18% a year since March 2009, how can the cycle not be considered pretty mature? Yet it’s not quite that simple. Huge parts of the economy have run out of sync, at separate speeds. Some indicators have a decidedly “good as it gets” look, others retain a mid-cycle profile — and a few even resemble early parts of a recovery than the end. Friday’s unexpectedly strong November job gain above 200,000 reflects this debate, suggesting we are not at “full employment” even this deep into an expansion. And the market itself has stalled and retrenched several times along the way, keeping risk appetites tethered and purging or preventing excesses. In the “late-cycle” category we find several broad, trending data readings: Unemployment rate and jobless claims at a 50-year low; consumer confidence hit a cycle peak and has flattened out; and the broad index of leading economic indicators has slipped from very high levels. Auto sales peaked a few years ago. Corporate debt levels are near extremes, profit margins have retreated from historic highs and equity valuations are certainly full and in line with the latter phases of prior bull markets. But corporate-credit conditions are sturdy, and households have simply not loaded up on debt this cycle, in a long period of enforced and then voluntary sobriety after the massive credit boom and bust that culminated in 2008. This leaves consumers in good shape. And the housing market, a drag on growth for years after the crash, has now perked up and is feeding off supply-demand dynamics that are more typical of an early-cycle environment.

What about the yield curve?

The summertime inversion of the Treasury yield curve — in which longer-term bond yields slip below short-term rates after the Federal Reserve has been tightening policy for a while — crystallized the debate on the cycle’s effective age. Such an inversion, in the past, has started the countdown to a recession — but sometimes with a lag as long as two years. This indicator has been translated into a recession-probability gauge one year ahead by the New York Fed. Source: New York Fed It has turned lower since late summer as the yield curve has returned to its “normal” shape, but only in the 1960s has it ever climbed above 30% and fallen back to tame levels well ahead of any recession. Have there even been enough cycles for this pattern to qualify as a statistically reliable “rule?” Do the extremely low absolute level of rates now (similar to the ’60s) change the interpretation? Was the inversion too shallow and short-lived to serve as a proper signal? Whatever the answers, Jason Hunter, technical strategist at JP Morgan, notes that stocks have tended to have some of their strongest runs after an inversion, late in a cycle. “The longer-term bull cycles persisted for nearly two years after the initial [Treasury] curve inversion during the past three business cycles, with the majority of the late-cycle rally acceleration phases unfolding within the year after curve inversion.” The S&P on average has gained more than 20% over less than two years in the past four episodes before peaking. One way to view the summer tumult is as the third severe “growth scare” of this expansion, following those of 2011-12 and 2015-16. Both brought with them nasty 15-20% equity downturns, new lows in Treasury yields and forced central banks to become more accommodative. The Fed has referred to its shift from rate-hiking last year to three cuts this year as a “mid-cycle adjustment,” which would leave it on hold for now and summons happy memories of prior such Fed-enabled “soft landings.”

‘Still upside’ for stocks


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: michael santoli
Keywords: news, cnbc, companies, curve, economy, late, fed, cycles, cycle, past, levels, recharging, inversion, possible, yield, treasury


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7Qs: How Karen Firestone beats the market with 35 names — ‘Don’t fall in love with your stocks’

(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC’s Evening Brief, click here.) Firestone runs a concentrated equity portfolio with only 35 stocks, which returned more than 30% this year, beating the S&P 500’s 25% gain. After a 22-year run at Fidelity, Firestone founded Aureus Asset Management, a wealth advisory firm that now manages over $1 billion of clients’ assets. Having spent most of her life picking stocks, Firestone shared with CNBC her


(This story is part of the Weekend Brief edition of the Evening Brief newsletter.
To sign up for CNBC’s Evening Brief, click here.)
Firestone runs a concentrated equity portfolio with only 35 stocks, which returned more than 30% this year, beating the S&P 500’s 25% gain.
After a 22-year run at Fidelity, Firestone founded Aureus Asset Management, a wealth advisory firm that now manages over $1 billion of clients’ assets.
Having spent most of her life picking stocks, Firestone shared with CNBC her
7Qs: How Karen Firestone beats the market with 35 names — ‘Don’t fall in love with your stocks’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: yun li
Keywords: news, cnbc, companies, market, evening, stocks, fall, 7qs, fund, worst, love, beats, picking, 500s, dont, brief, names, management, karen, firestone


7Qs: How Karen Firestone beats the market with 35 names — 'Don't fall in love with your stocks'

(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC’s Evening Brief, click here.)

Wall Street veteran Karen Firestone knows all too well that stock picking isn’t as easy as it used to be, but her decades of experience is serving her well.

Firestone runs a concentrated equity portfolio with only 35 stocks, which returned more than 30% this year, beating the S&P 500’s 25% gain.

She started out as an assistant fund manager to Peter Lynch in 1983 on Fidelity’s legendary Magellan Fund, which consistently more than doubled the S&P 500’s performance under his management. After a 22-year run at Fidelity, Firestone founded Aureus Asset Management, a wealth advisory firm that now manages over $1 billion of clients’ assets.

Having spent most of her life picking stocks, Firestone shared with CNBC her investing philosophy, her best and worst trades, as well as the biggest lesson learned in her career.

Here are 7Qs for Firestone:


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: yun li
Keywords: news, cnbc, companies, market, evening, stocks, fall, 7qs, fund, worst, love, beats, picking, 500s, dont, brief, names, management, karen, firestone


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Wall Street bets international stocks will top US equities in 2020 after a decade-long slump

Several investors and strategists are betting on international stocks outperforming the U.S. in the new year, something that has only happened twice since 2010. “A reacceleration in global growth, a weaker US dollar, and favorable valuations should all support non-US stocks next year.” Callum Thomas, head of research at Topdown Charts, notes there is a “50% valuation gap” between U.S. and international stocks. These moves could spur a resurgence in global economic growth, which would “disproport


Several investors and strategists are betting on international stocks outperforming the U.S. in the new year, something that has only happened twice since 2010.
“A reacceleration in global growth, a weaker US dollar, and favorable valuations should all support non-US stocks next year.”
Callum Thomas, head of research at Topdown Charts, notes there is a “50% valuation gap” between U.S. and international stocks.
These moves could spur a resurgence in global economic growth, which would “disproport
Wall Street bets international stocks will top US equities in 2020 after a decade-long slump Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: fred imbert
Keywords: news, cnbc, companies, valuation, growth, bets, stocks, wall, global, international, equities, msci, index, street, economic, slump, europe, decadelong, 2020


Wall Street bets international stocks will top US equities in 2020 after a decade-long slump

A pedestrian walks past a stock indicator displaying numbers of the Tokyo Stock Exchange and the world’s major markets in Tokyo. Kazuhiro Nogi | AFP | Getty Images

(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC’s Evening Brief, click here.) U.S. equities have been the best place to invest during the past 10 years, but that dominance could shift in 2020. Several investors and strategists are betting on international stocks outperforming the U.S. in the new year, something that has only happened twice since 2010. U.S. stocks have blown their international counterparts out of the water in that time. The S&P 500 is up more than 180% and the MSCI ACWI ex U.S. exchange-traded fund (ACWX) has gained just 18% since 2010. Emerging markets have fared even worse this decade against the S&P 500. The iShares MSCI Emerging Market Index is up just 4% since 2010. However, market experts think international stocks are poised for a comeback in 2020 versus the U.S. due to attractive valuations and a potential trough in global economic growth as world central banks take up more stimulative measures. “Having underperformed for more than ten years, non-US stocks are set to gain the upper hand over their US peers,” Peter Berezin, chief global strategist at BCA Research, said in a note. “A reacceleration in global growth, a weaker US dollar, and favorable valuations should all support non-US stocks next year.”

Valuation favors international

The S&P 500’s price-to-earnings ratio, a widely used valuation metric on Wall Street, currently sits above 20. That’s the average’s richest valuation since August 2018. That high valuation follows the S&P 500 hitting all-time highs despite a year-over-year earnings decline. International stocks, however, are trading at a much lower valuation. Through Friday’s close, the ACWI fund’s price-to-earnings ratio rested around 14.7. Callum Thomas, head of research at Topdown Charts, notes there is a “50% valuation gap” between U.S. and international stocks. “Yes global ex-US has its problems, but are they 50% discount problems? At a certain point if the valuation gap is wide enough it kind of starts to speak for itself,” he said in a note. This wide valuation gap comes as global economic growth has slowed down while the U.S. economy keeps humming. Last week, the Commerce Department said U.S. GDP expanded by 2.1% in the third quarter. Economies around the world, meanwhile, have been stuck in the mud as manufacturing activity falls and trade conditions tighten. In Europe, manufacturing activity hit a seven-year low in October. It rebounded slightly in November but remained in contraction territory, data from IHS Markit showed. On the trade front, the U.S.-China conflict continues as both sides try to sign a so-called phase one deal. President Donald Trump also said Monday the U.S. will restore tariffs on metal imports from Brazil and Argentina. These factors, however, have led global central banks to ease monetary policy. The European Central Bank launched a new bond-buying program earlier this year. The People’s Bank of China lowered its short-term funding rate for the first time since 2015 last month, and the Bank of Japan has kept monetary policy easy throughout 2019.

Global economic rebound?

The trade tensions between China and the U.S. have eased slightly in recent months as both sides show they are willing to reach some sort of deal. These moves could spur a resurgence in global economic growth, which would “disproportionately benefit” international stocks relative to the U.S., BCA’s Berezin said. “The sector composition of international stocks is more skewed towards cyclicals than defensives compared to US stocks,” Berezin said. “As a result, non-US stocks generally outperform their US peers when global growth accelerates.” To be sure, global stocks may be pricing in these scenarios already. Mike Wilson, chief U.S. equity strategy at Morgan Stanley, said the MSCI All-Country World Index — which measures the performance of global stocks including the U.S. — has already produced returns that are “meaningfully higher” since hitting its December 2018 lows. “That is consistent with a bottoming in global economic growth, meaning that markets are sending a signal about the turn in growth and pricing it in many cases,” Wilson said.

What to buy overseas

Wilson recommends investors buy into Japanese and Korean stocks in 2020. He also has an underweight rating on U.S. stocks heading into next year. The iShares MSCI Japan ETF (EWJ) is up more than 18% this year, on pace for its biggest annual gain since 2017. The ETF rose 22.7% that year. Japan’s Nikkei 225 index is also up 16.4% for 2019. Korean stocks, however, have not fared nearly as well this year. The iShares MSCI South Korea ETF (EWY) is down more than 2% for 2019, and the main stock index, the Kospi, is barely up year to date. Europe is another international market eyed by experts heading into 2020. Stocks in the continent are on pace for their biggest annual gain since 2009, when they surged 28%. The Stoxx 600 index, which tracks a broad number of European stocks, is up 19.3% in 2019. Cameron Brandt, director of research at EPFR, said money flows into European assets are “certainly indicating that all the bad news in Europe has been priced in.” “Given that the ECB is back in full backstop mode, and that Europe has a lot of dry powder in terms of fiscal stimulus … it’s probably fair to say the greatest potential for upside next year may be in Europe,” Brandt said. Within Europe, one market that could see further upside in 2020 is Germany, said Nuveen’s Brian Nick. The German Dax has rallied more than 20% in 2019 and is headed for its biggest one-year gain since 2013. “If we get a stabilization in growth in 2020, the internationally oriented countries should do a bit better, especially if China looks a little more solid as it seems to,” the firm’s chief investment strategist said. “Those two economies are more closely tied together than the U.S. is to either of those.”

Buy international for the new decade?


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: fred imbert
Keywords: news, cnbc, companies, valuation, growth, bets, stocks, wall, global, international, equities, msci, index, street, economic, slump, europe, decadelong, 2020


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China’s November foreign exchange reserves fall more than expected amid focus on trade deal

A bank employee counts U.S. currency and Chinese currency notes at a bank on August 6, 2019 in China. China’s foreign exchange reserves fell $9 billion in November to $3.096 trillion, central bank data showed on Saturday, as Washington and Beijing remained locked in negotiations over an interim trade agreement. Analysts polled by Reuters had expected China’s reserves, the world’s largest, would fall $4 billion to $3.101 trillion in November. The value of the country’s gold reserves fell to $91.4


A bank employee counts U.S. currency and Chinese currency notes at a bank on August 6, 2019 in China.
China’s foreign exchange reserves fell $9 billion in November to $3.096 trillion, central bank data showed on Saturday, as Washington and Beijing remained locked in negotiations over an interim trade agreement.
Analysts polled by Reuters had expected China’s reserves, the world’s largest, would fall $4 billion to $3.101 trillion in November.
The value of the country’s gold reserves fell to $91.4
China’s November foreign exchange reserves fall more than expected amid focus on trade deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07
Keywords: news, cnbc, companies, focus, reserves, foreign, fall, trade, billion, amid, exchange, expected, end, chinas, deal, bank, yuan, months, chinese, trillion


China's November foreign exchange reserves fall more than expected amid focus on trade deal

A bank employee counts U.S. currency and Chinese currency notes at a bank on August 6, 2019 in China.

China’s foreign exchange reserves fell $9 billion in November to $3.096 trillion, central bank data showed on Saturday, as Washington and Beijing remained locked in negotiations over an interim trade agreement.

Analysts polled by Reuters had expected China’s reserves, the world’s largest, would fall $4 billion to $3.101 trillion in November.

Despite the slowing Chinese economy and escalating U.S.-China trade war, its reserves have been gradually rising since late 2018, helped by tight capital controls and rising inflows from foreign investors who are snapping up the country’s stocks and bonds.

Modest changes in reserve levels in recent months have been largely ascribed to fluctuations in global exchange rates and the value of assets that China holds such as foreign bonds.

The yuan has been driven largely by twists and turns in the 17-month long trade war between China and the United States.

After sliding sharply this summer as the dispute suddenly escalated, the yuan rose for three straight months through November on hopes of a trade truce, only to slide again in early December as tensions between Washington and Beijing flared.

Fresh U.S. tariffs on Chinese goods are set to take effect on Dec. 15.

It gained 0.12% against the dollar in November, but remains about 2.3% weaker for the year to date.

The dollar, meanwhile, rose about 1 percent against a basket of other major currencies in November.

The value of the country’s gold reserves fell to $91.47 billion at the end of November from $94.65 billion at the end of October.

China held 62.64 million fine troy ounces of gold at the end of November, unchanged from October.

China’s economic growth cooled to 6.0% in the third quarter, the slowest pace in nearly 30 years, and many economists believe it will decelerate further into the upper 5% range in 2020.

Still, analysts note capital outflows have been modest compared with the last economic downturn in 2015-16, when policymakers burned through roughly $1 trillion in reserves supporting the yuan.

China’s central bank has started to slowly trim interest rates in recent months, and more reductions are expected in coming quarters to avert a sharper slowdown.

But analysts believe those cuts will likely be more gradual and smaller than those in 2015. If so, moves in the yuan are likely to be influenced more by trade developments than policy easing.


Company: cnbc, Activity: cnbc, Date: 2019-12-07
Keywords: news, cnbc, companies, focus, reserves, foreign, fall, trade, billion, amid, exchange, expected, end, chinas, deal, bank, yuan, months, chinese, trillion


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Elizabeth Warren’s antitrust bill would dramatically enhance government control over the biggest US companies

The line Warren draws for such companies is far below the standard set for monopolistic companies, which hold 70% market share. The draft bill would instead focus on any companies with buying power, which could include corporations with market share as low as 25%. Undoing Supreme Court rulingsA key part of the bill prohibits dominant companies from “denying access to essential facilities.” The bill would also place limits on the ability of any company with market power to engage in predatory pri


The line Warren draws for such companies is far below the standard set for monopolistic companies, which hold 70% market share.
The draft bill would instead focus on any companies with buying power, which could include corporations with market share as low as 25%.
Undoing Supreme Court rulingsA key part of the bill prohibits dominant companies from “denying access to essential facilities.”
The bill would also place limits on the ability of any company with market power to engage in predatory pri
Elizabeth Warren’s antitrust bill would dramatically enhance government control over the biggest US companies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: lauren hirsch
Keywords: news, cnbc, companies, enhance, warrens, warren, dramatically, company, antitrust, elizabeth, facebook, biggest, supreme, say, companies, power, bill, access, control


Elizabeth Warren's antitrust bill would dramatically enhance government control over the biggest US companies

Democratic presidential hopeful Massachusetts Senator Elizabeth Warren gestures as she arrives for a town hall devoted to LGBTQ issues hosted by CNN and the Human rights Campaign Foundation at The Novo in Los Angeles on October 10, 2019. ROBYN BECK | AFP | Getty Images

Presidential hopeful Sen. Elizabeth Warren is drafting a sweeping piece of legislation that would go far beyond breaking and blocking deals between companies and would exert more control over some of America’s largest firms. People with knowledge of the bill and who support it say the measure takes important steps towards clarifying the rule book under which the country’s largest companies play, after years of lax or incomplete oversight. Its detractors, including academics and antitrust lawyers who spoke with CNBC on the condition of anonymity, say it takes unprecedented steps to legislate America’s largest companies that undoes decades of jurisprudence and weakens the country’s competitive stance. The bill, tentatively named the Anti-Monopoly and Competition Restoration Act, is coauthored with Rep. David Cicilline, D-R.I., who chairs the antitrust subcommittee on the House Judiciary panel. Cicilline has said he will not introduce new antitrust legislation until the investigations he is leading into the growing power of big tech companies like Facebook have concluded. Bloomberg News first reported on the anti-merger aspects of the bill. CNBC has reviewed a draft of the bill. The legislation ultimately proposed may take a different shape. But its ideas demonstrate how dramatically Warren wishes to approach antitrust policy in the U.S. Warren, who has built her top-tier Democratic presidential campaign on a populist call for structural change in the American economy, has already pushed for breaking up big technology companies like Amazon and Facebook. The proposed antitrust legislation goes far beyond regulating merger-and-acquisition activity and ending megamergers. It outlines a set of provisions to apply to any company with “market power.” The line Warren draws for such companies is far below the standard set for monopolistic companies, which hold 70% market share. The draft bill would instead focus on any companies with buying power, which could include corporations with market share as low as 25%. It would also focus on all companies with more than $40 billion in sales. The guidelines cover everything from the way these companies treat their competitors to how they price their products. Spokespeople for Warren and Cicilline declined to comment. The guidelines mimic similar ones laid out in Europe, which has taken a more aggressive approach to antitrust than the U.S. with its “abuse of dominance standard.” Critics of Europe’s approach argue there is a reason that the world’s most innovative companies, like Google, have been born in Silicon Valley and not Paris or Berlin. Its defenders argue concerns over the potential ability of companies like Amazon and Facebook to abuse their power overrides concerns of economic power. “Over the last 3 decades, powerful corporations have amassed too much power over the United States economy, stifling competition in United States markets and harming consumers, workers, small businesses and entrepreneurs, and innovation,” the bill’s authors write.

Undoing Supreme Court rulings

A key part of the bill prohibits dominant companies from “denying access to essential facilities.” That language flies directly in the face of an influential Supreme Court case, Verizon v. Trinko. That 2004 ruling protects companies from lawsuits if they do not allow their competitors access to infrastructure deemed necessary for business. Broadly speaking, such infrastructure could be access to anything from a bridge to a search engine. The Trinko case stemmed from a lawsuit against Verizon for not providing competitors access to the telephone network it had built up. With that Supreme Court blessing, dominant companies have largely been free of the threat of litigation to give certain access to competitors. But Warren’s draft bill would codify into law what the Supreme Court has declined to impose punishment on. “This (proposed regulation) would essentially change the presumption that a refusal to share facilities – which is now presumptively lawful – to nearly conclusively unlawful,” said Professor John Lopatka, an antitrust scholar at Penn State Law. If enacted, the measure could have broad repercussions, including on companies like Amazon and Facebook that deal with the flow of data, an increasingly important tool in today’s economy. Facebook was accused by the U.K. Parliament last year of cutting off access to its data to Twitter’s Vine social video app, impairing its competitor in the process. The idea of monitoring the flow of information as anti-competitive behavior has been echoed elsewhere, and on a bipartisan basis. Republican Makan Delrahim, whom Trump appointed the head of the Justice Department’s antitrust division, recently said in a speech the DOJ plans to be “especially vigilant about the potential for anti-competitive effects when a company cuts off a profitable relationship supplying business partners with key data, code, or other technological inputs in ways that are contrary to the company’s economic interests.” Others, though, say such stipulations in the draft bill would force companies to give up the rewards of their own investment and ideas by passing them on to others. “The essence of Trinko was we want to create an incentive for firms to create these facilities to innovate and come up with this infrastructure. If you require a firm that succeeds to share that infrastructure with its rivals, the firm has less of an incentive to make those investments,” said Professor Lopatka. The bill would also place limits on the ability of any company with market power to engage in predatory pricing. Predatory pricing – the act of undercutting a rival with prices so low that they go out of business – is rarely litigated because it is nearly impossible to prove if it is not shown that a company will be successful in its efforts. According to the bill, though, it wouldn’t matter if a company’s efforts to undercut its rivals are likely to succeed. It would only matter whether a company prices its products for less than it costs to make them. Using low costs to hammer out competition is a tool that is frequently employed by larger companies like Walmart. Toys R Us blamed the big-box retailer in part for its liquidation by claiming the big box retailer slashed its toy prices so low it could not compete. Lawyers and academics who oppose the bill say the language will hurt consumers rather than helping them by limiting the ability of companies to pass on cost-savings they get through efficiencies of scale. It may also make it harder for new entrants to take on giants like Amazon, they say. The bill recommends a number of punishments for executives at companies who knowingly defy it, including fines and jail time. The Sherman Act, a federal statute that outlaws monopolistic business behavior, does allow the government to prosecute CEOs who lead allegedly anti-competitive companies. But such prosecutions are rare, and are reserved for CEOs engaged directly in an activity that limits competition, like price-fixing.

Moving on from Bork


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: lauren hirsch
Keywords: news, cnbc, companies, enhance, warrens, warren, dramatically, company, antitrust, elizabeth, facebook, biggest, supreme, say, companies, power, bill, access, control


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Automakers investing billions in partnerships as industry races toward autonomous and electric vehicles

GMDETROIT – General Motors’ $2.3 billion joint venture with LG Chem for production of battery cells for electric vehicles is “more than a collaboration,” it’s a necessity in today’s rapidly changing automotive industry. “To invest in these electric vehicles and CASE (connected, autonomous, shared, electric vehicles) in general, you’re taking one years’ worth of investment out of every five out of the picture,” Wakefield said. AlixPartners reports the number of automaker partnerships increased 43


GMDETROIT – General Motors’ $2.3 billion joint venture with LG Chem for production of battery cells for electric vehicles is “more than a collaboration,” it’s a necessity in today’s rapidly changing automotive industry.
“To invest in these electric vehicles and CASE (connected, autonomous, shared, electric vehicles) in general, you’re taking one years’ worth of investment out of every five out of the picture,” Wakefield said.
AlixPartners reports the number of automaker partnerships increased 43
Automakers investing billions in partnerships as industry races toward autonomous and electric vehicles Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: michael wayland
Keywords: news, cnbc, companies, electric, billions, automakers, joint, billion, partnerships, venture, ford, vehicles, autonomous, ceo, races, investing, industry


Automakers investing billions in partnerships as industry races toward autonomous and electric vehicles

GM CEO and Chairman Mary Barra and LG Chem Vice Chairman and CEO Hak-Cheol Shin at the automaker’s battery lab in Warren, Mich., where the companies announced a new $2.6-billion joint venture on Dec. 5, 2019. GM

DETROIT – General Motors’ $2.3 billion joint venture with LG Chem for production of battery cells for electric vehicles is “more than a collaboration,” it’s a necessity in today’s rapidly changing automotive industry. The announced joint venture between America’s largest automaker and the South Korean chemical giant adds to a growing list of tie-ups for the auto industry as companies attempt to share in the monumental costs of electric and autonomous vehicles. Automakers such as GM are annually spending billions on the emerging technologies in an attempt to gain an upper hand on the potential multitrillion-dollar businesses, which many believe will transform transportation as we know it and assist in lowering global carbon emissions. But, for the moment, remain unprofitable. Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners and a managing director at the firm, said the “tricky balance” of investing in new technologies while keeping traditional business operations profitable is one of the main drivers for the uptick in auto industry partnerships. “All these things take this tremendous investment and aren’t going to pay off with a top-end profit next year or the year after or the year after that,” he told CNBC on Friday. “But they are somewhat existential if you want to be in the game 10 years from now. That’s where partnerships come into play.” A report by AlixPartners earlier this year estimated the industry’s annual spending on autonomous driving and electric vehicles will reach a cumulative $85 billion by 2025 and $225 billion by 2023, respectively.

The capital being spent on electric vehicles alone is roughly equal to the massive amount that all automakers globally combined spend on capital expenditures and research and development in a year, according to the firm. “To invest in these electric vehicles and CASE (connected, autonomous, shared, electric vehicles) in general, you’re taking one years’ worth of investment out of every five out of the picture,” Wakefield said. “That’s an extraordinary amount to take out and keep the trains running on time of your vehicle programs and traditional business.”

Billions in tie-ups

Some of the most prominent collaborations this year have been between automakers and tech companies, however many have been automakers deciding to share costs with traditional competitors. The largest announcement thus far this year is the planned merger between Fiat Chrysler and French automaker PSA Group. It would create the fourth-largest automaker by sales in the world with a roughly $50 billion valuation. Fiat Chrysler CEO Mike Manley described it as a “potentially industry-changing combination,” while PSA CEO Carlos Tavares said the “convergence brings significant value to all the stakeholders and opens a bright future for the combined entity,” including autonomous and electric vehicles. Major non-merger deals included: Hyundai Motor and auto supplier Aptiv creating a $4 billion autonomous vehicle joint venture; Volkswagen agreeing to invest $2.6 billion in Ford Motor-backed autonomous vehicle startup Argo AI as part of a global alliance; Amazon, Ford and others investing hundreds of millions in startup EV manufacturer Rivian; and German automakers Daimler and BMW jointly investing more than $1 billion in mobility services.

Jim Hackett (r), CEO of Ford, and Herbert Diess, CEO of VW, at the Detroit auto show last January. Boris Roessler | picture alliance | Getty Images

“These companies, especially on the autonomous side, they’re finding it’s harder to develop this stuff than they thought it was going to be, so they’re teaming up to spread those costs and share the expertise that they have across a broader range of vehicles to try and get some scale,” said Sam Abuelsamid, principal research analyst at Navigant and an engineer. AlixPartners reports the number of automaker partnerships increased 43% from 2017 to 2018 to 543, led by a 122% increase in autonomous vehicles tie-ups to 115. The partnerships are separate from mergers and acquisitions, which AlixPartners said were “down a bit” last year from 2017. However, the firm reports the portion of closed deals last year related to connected, autonomous, shared, electric vehicles rose five percentage points to 55%, worth $21 billion, in 2018. Other high-profile deals this year included: Toyota Motor taking a 4.9% stake, valued at more than $900 million, in Suzuki; Ford creating a $275 million joint venture with Mumbai-based Mahindra & Mahindra; and Honda Motor and Hitachi announcing plans to combine car parts businesses to create a $17 billion components supplier. In September, Toyota announced plans to raise its stake in Subaru from 17% to more than 20%, expanding their partnership to invest more efficiently in new technologies.

Seeking profits

Executives from several automakers, including GM and Ford, have said their next-generation electric vehicles will be profitable — a challenge the industry has faced for nearly a decade. “For competitive reasons and also for regulatory reasons, everybody has to have EVs in their lineup. The challenge is selling them profitability,” Abuelsamid said. “That’s something everybody has struggled to do so far.” GM CEO Mary Barra on Thursday confirmed the joint venture with LG Chem will assist in the company’s plans for profitable electric vehicles, which are expected to begin rolling out in 2021. “The new facility will help us scale production and dramatically enhance EV profitability and affordability,” she told reporters when announcing the joint-venture with LG Chem. “Ours is a long-lead industry and having accelerated our product planning and production processes, we will develop a greater range of EV options that truly alter our product portfolio.”


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: michael wayland
Keywords: news, cnbc, companies, electric, billions, automakers, joint, billion, partnerships, venture, ford, vehicles, autonomous, ceo, races, investing, industry


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