China’s top banking regulator: Any yuan bears will suffer ‘heavy losses’

China’s banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer “heavy losses” if they bet against the currency. The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute intensified earlier this month. It is now less than a tenth of a yuan away from the 7-per-dollar level authorities have in the past indicated as a floor. “Those who speculate and short the yu


China’s banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer “heavy losses” if they bet against the currency. The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute intensified earlier this month. It is now less than a tenth of a yuan away from the 7-per-dollar level authorities have in the past indicated as a floor. “Those who speculate and short the yu
China’s top banking regulator: Any yuan bears will suffer ‘heavy losses’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-25
Keywords: news, cnbc, companies, suffer, bears, moving, large, insurance, money, short, yuan, chinas, regulator, hot, real, banking, heavy, losses, speculative


China's top banking regulator: Any yuan bears will suffer 'heavy losses'

China’s banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer “heavy losses” if they bet against the currency.

The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute intensified earlier this month. It is now less than a tenth of a yuan away from the 7-per-dollar level authorities have in the past indicated as a floor.

“Short-term fluctuation of the yuan exchange rate is normal, but in the long-run, China’s economic fundamentals determine that the yuan will not depreciate persistently,” Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission (CBIRC), told a finance forum in Beijing.

“Those who speculate and short the yuan will for sure suffer heavy loss.”

Xiao was reading from a script prepared for Guo Shuqing, CBIRC’s chairman and the Communist Party chief of the People’s Bank of China (PBOC). Guo was scheduled to give a speech at the same forum but couldn’t make it due to last minute arrangements.

Xiao also said Beijing must look out for hot money moving in and out of the country, as well as large amounts of capital flowing into the frothy real estate market.

“We must be especially vigilant about money from overseas moving in and out in large quantities, and hot speculative money, and we must resolutely fight bubbles in real estate and financial assets,” he said.

Chinese policymakers have struggled to manage bubble risks in the property market, the world’s largest, without hurting growth in the sector, which is crucial for the wider economy.


Company: cnbc, Activity: cnbc, Date: 2019-05-25
Keywords: news, cnbc, companies, suffer, bears, moving, large, insurance, money, short, yuan, chinas, regulator, hot, real, banking, heavy, losses, speculative


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Wall Street misunderstands Tesla, says analyst whose lowest price target is triple current levels

An analyst for a firm with a major investment in Tesla said Friday that recent drastic price-target cuts on the stock by others on Wall Street are missing the big picture. Tasha Keeney, an Ark analyst, said in an interview on CNBC’s “Squawk Box” that Wall Street is “misunderstanding the Tesla story” and the potential upside of Elon Musk’s vision. This week, Morgan Stanley put a worst-case of $10 per share on Tesla. The electric vehicle maker began the month saying it would raise more than $2 bil


An analyst for a firm with a major investment in Tesla said Friday that recent drastic price-target cuts on the stock by others on Wall Street are missing the big picture. Tasha Keeney, an Ark analyst, said in an interview on CNBC’s “Squawk Box” that Wall Street is “misunderstanding the Tesla story” and the potential upside of Elon Musk’s vision. This week, Morgan Stanley put a worst-case of $10 per share on Tesla. The electric vehicle maker began the month saying it would raise more than $2 bil
Wall Street misunderstands Tesla, says analyst whose lowest price target is triple current levels Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: matthew j belvedere
Keywords: news, cnbc, companies, misunderstands, ark, value, price, month, street, target, triple, musk, stock, billion, vehicles, share, tesla, levels, current, lowest, wall


Wall Street misunderstands Tesla, says analyst whose lowest price target is triple current levels

An analyst for a firm with a major investment in Tesla said Friday that recent drastic price-target cuts on the stock by others on Wall Street are missing the big picture.

Ark Invest, whose founder predicted on CNBC last year that Tesla could hit $4,000 per share, stands by that call, even as the stock has lost about 40% of its value in 2019.

Tasha Keeney, an Ark analyst, said in an interview on CNBC’s “Squawk Box” that Wall Street is “misunderstanding the Tesla story” and the potential upside of Elon Musk’s vision. Musk’s accomplishments are widely acknowledged, but he’s gotten himself and Tesla into trouble with the government over his comments, stemming from an August tweet about possibly taking the company private with “funding secured.”

Keeney said Ark believes so strongly in Tesla that its five-year, bear-case scenario is $560 per share, which would be nearly triple the value of where the stock closed Thursday at $195.

This week, Morgan Stanley put a worst-case of $10 per share on Tesla. A day later, Citigroup said the stock could fall to $36 per share.

Tesla has always been a battleground stock as one of the most loved and hated. Tesla is also one of the most shorted stocks. Shorting a stock is a bet that it will go down.

The electric vehicle maker began the month saying it would raise more than $2 billion through stock and convertible debt. The company’s cash burn and need to repeatedly raise money has been a concern among its detractors.

Keeney, however, said Ark is not troubled by additional fundraising. “If we talk about cash, and those worries, in our valuation model we actually expect, we have Tesla raising an additional $10 billion to $20 billion in the next five years. And we’re actually OK with that.”

“We want them to get as many cars on the road as possible” with the next step of running a “fully autonomous taxi network.” Last month, Musk promised 1 million vehicles on the road next year that are able to function as “robo-taxis,” a claim that was generally thought to be optimistic, at best.

On an investor call earlier this month, two of the invitees told CNBC that Musk predicted autonomous driving will transform Tesla into a company with a $500 billion stock market value. As of Thursday’s close, Tesla’s market cap was just over $34 billion.

Keeney admits that Musk sets “extremely aggressive goals” and often falls short. “But in doing that, in sort of pushing to that target, they’ve been able to achieve the impossible so far.”

She also countered the argument that demand for Tesla vehicles is waning. “Sixty-nine percent of the trade-ins for the Model 3, for the standard range version, were non-premium vehicles. So they are pulling in demand from other segments. They outsold their next best competitor by 60% in the premium vehicle segment.”

“People clearly like these cars for a good reason. Tesla has a software advantage that no one else can beat,” she added.


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: matthew j belvedere
Keywords: news, cnbc, companies, misunderstands, ark, value, price, month, street, target, triple, musk, stock, billion, vehicles, share, tesla, levels, current, lowest, wall


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Trump orders intelligence agencies to cooperate with attorney general’s investigation into origins of Mueller probe

President Donald Trump walks out of the Oval Office before speaking about Robert Mueller’s investigation into Russian interference in the 2016 presidential election in the Rose Garden at the White House May 22, 2019 in Washington, DC. U.S. President Donald Trump on Thursday directed the U.S. intelligence community to “quickly and fully cooperate” with Attorney General William Barr’s investigation into the origins of special counsel Robert Mueller’s Russia probe, according to a White House statem


President Donald Trump walks out of the Oval Office before speaking about Robert Mueller’s investigation into Russian interference in the 2016 presidential election in the Rose Garden at the White House May 22, 2019 in Washington, DC. U.S. President Donald Trump on Thursday directed the U.S. intelligence community to “quickly and fully cooperate” with Attorney General William Barr’s investigation into the origins of special counsel Robert Mueller’s Russia probe, according to a White House statem
Trump orders intelligence agencies to cooperate with attorney general’s investigation into origins of Mueller probe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: tucker higgins
Keywords: news, cnbc, companies, surveillance, trump, intelligence, house, orders, election, origins, mueller, cooperate, presidential, muellers, probe, president, investigation, attorney, generals, white, robert


Trump orders intelligence agencies to cooperate with attorney general's investigation into origins of Mueller probe

President Donald Trump walks out of the Oval Office before speaking about Robert Mueller’s investigation into Russian interference in the 2016 presidential election in the Rose Garden at the White House May 22, 2019 in Washington, DC.

U.S. President Donald Trump on Thursday directed the U.S. intelligence community to “quickly and fully cooperate” with Attorney General William Barr’s investigation into the origins of special counsel Robert Mueller’s Russia probe, according to a White House statement.

That investigation is looking into the government’s authorization of surveillance on Trump campaign aides during the 2016 election. Trump has said that the surveillance was unlawful and could lead to “long jail sentences.”

Barr announced shortly after Mueller concluded his investigation earlier this year that the Department of Justice was examining that surveillance, saying “spying did occur.” In May, it was reported that Barr had appointed a U.S. attorney to look into the matter.

The White House signaled that information uncovered by Barr’s investigation will be made public, and granted Barr the authority to declassify materials related to it. The White House said it would “ensure that all Americans learn the truth about the events that occurred, and the actions that were taken, during the last Presidential election.”


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: tucker higgins
Keywords: news, cnbc, companies, surveillance, trump, intelligence, house, orders, election, origins, mueller, cooperate, presidential, muellers, probe, president, investigation, attorney, generals, white, robert


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Self-made millionaire: 5 money mistakes young people make that destroy their chances of getting rich

And if millennials want to get rich, they’ll need to stop making these five huge mistakes:1. Spending money on a class that will make you better at something or renting office space to run your company out of is smart. But letting what you see on social media tempt you into spending money on things you don’t need is a big mistake. The entire middle class is built on seeking comfort; they’re satisfied with a $50,000 income, two weeks of vacation, health insurance and a house. If you’re just seeki


And if millennials want to get rich, they’ll need to stop making these five huge mistakes:1. Spending money on a class that will make you better at something or renting office space to run your company out of is smart. But letting what you see on social media tempt you into spending money on things you don’t need is a big mistake. The entire middle class is built on seeking comfort; they’re satisfied with a $50,000 income, two weeks of vacation, health insurance and a house. If you’re just seeki
Self-made millionaire: 5 money mistakes young people make that destroy their chances of getting rich Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: grant cardone
Keywords: news, cnbc, companies, making, dont, rich, millennials, destroy, money, theyre, chances, youre, stop, young, getting, comfort, millionaire, spending, selfmade, things, mistakes


Self-made millionaire: 5 money mistakes young people make that destroy their chances of getting rich

There isn’t a single generation that hasn’t had money problems. But the sad truth is that millennials are struggling financially more than any other generation since the Great Depression. I get it, though. We live in a different world now. Things are more expensive. College debt sucks. Finding a job is hard. But that doesn’t mean getting rich is impossible. Years ago, before I built my multimillion-dollar fortune, I was stuck in a job I hated. I was making $3,000 a month and I wanted to make $4,000. That extra $1,000 was the single most important goal I’ve ever achieved in my life. I reached that goal because I committed to making smarter money decisions. And if millennials want to get rich, they’ll need to stop making these five huge mistakes:

1. Using credit for things that don’t create income

According to Schwab’s 2019 Modern Wealth report, millennials are spending an average of $478 per month on “nonessential” items (i.e., dining out, entertainment, luxury items and vacations). That’s much more than the $359 spent by baby boomers.

One of my top money rules is that I only use my credit card for large purchases that I know will make me more money. Spending money on a class that will make you better at something or renting office space to run your company out of is smart. Buying a motorcycle or expensive shoes that will eventually wear out is not smart.

2. Comparing how much you have with others

Another person’s finances — good or bad — will not pay your bills, fund your retirement or provide you peace of mind. Almost two-thirds of millennials are living paycheck to paycheck. Maybe you’re not one of those people, but just because they’re worse off, it doesn’t mean you’re better off. Comparing your worth to others is a mental trap. Stop worrying about how financially behind (or ahead) everyone else is. Stay focused on your financial goals. Stop wasting time. Sit down and crunch the numbers. Find out what it’ll take for you to reach seven-figures. How many different ways can you collect one million dollars? What mistakes do you need to stop making? Once you have your game plan, take action.

3. Being a ‘pretender spender’

This is similar to my first point about spending on things that don’t create income. I’m not saying you can’t splurge once in a while (just don’t do it often and don’t put it on your credit card). But letting what you see on social media tempt you into spending money on things you don’t need is a big mistake. The people you see on Instagram — with their lavish dinners, parties, cars, designer clothes and vacations — aren’t necessarily “wealthy.” They’re most likely just “pretender spenders.” They’re the people who try to impress others by showing off extravagant things that were probably purchased with their parent’s credit cards (or their own). An Instagram lifestyle is no way to live — unless your being a social media influencer is your full-time job and it’s making you millions.

4. Seeking comfort instead of freedom

Comfort is the opposite of wealth. The entire middle class is built on seeking comfort; they’re satisfied with a $50,000 income, two weeks of vacation, health insurance and a house. But wealthy people seek more than just comfort. Instead, they strive for an abundance of money because it gives them more freedom and security than they’ll ever need. Too many millennials are satisfied with their finances when they should be aiming higher. If you’re just seeking comfort, you’re probably never going to achieve financial freedom. Comfort gives you a middle class life. Freedom gives you a wealthy life. Choose wisely.

5. Not making enough money


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: grant cardone
Keywords: news, cnbc, companies, making, dont, rich, millennials, destroy, money, theyre, chances, youre, stop, young, getting, comfort, millionaire, spending, selfmade, things, mistakes


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US Treasury yields tick higher amid ongoing trade war worries

Robert Mueller wants to testify in private before Congress,…Special counsel Robert Mueller wants to talk to Congress about his investigation into the Trump campaign and Russian interference in the 2016 election, but he wants to do it… Politicsread more


Robert Mueller wants to testify in private before Congress,…Special counsel Robert Mueller wants to talk to Congress about his investigation into the Trump campaign and Russian interference in the 2016 election, but he wants to do it… Politicsread more
US Treasury yields tick higher amid ongoing trade war worries Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: sam meredith
Keywords: news, cnbc, companies, ongoing, higher, itpoliticsread, trump, war, worries, trade, amid, testify, treasury, tick, mueller, private, investigation, robert, wants, yields, talk, russian


US Treasury yields tick higher amid ongoing trade war worries

Robert Mueller wants to testify in private before Congress,…

Special counsel Robert Mueller wants to talk to Congress about his investigation into the Trump campaign and Russian interference in the 2016 election, but he wants to do it…

Politics

read more


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: sam meredith
Keywords: news, cnbc, companies, ongoing, higher, itpoliticsread, trump, war, worries, trade, amid, testify, treasury, tick, mueller, private, investigation, robert, wants, yields, talk, russian


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Facebook says the doctored Nancy Pelosi video used to question her mental state and viewed millions of times will stay up

Facebook has decided to keep an altered video of House Speaker Nancy Pelosi (D-Calif.) on its site that makes her speech appear slow and slurred, The Guardian reported Friday. Commenters, including President Donald Trump’s personal attorney Rudy Giuliani, have used the video to call into question Pelosi’s competence and mental state. In a since-deleted tweet, Giuliani shared a link to the altered video and wrote, “What is wrong with Nancy Pelosi? Versions of the altered video could still be foun


Facebook has decided to keep an altered video of House Speaker Nancy Pelosi (D-Calif.) on its site that makes her speech appear slow and slurred, The Guardian reported Friday. Commenters, including President Donald Trump’s personal attorney Rudy Giuliani, have used the video to call into question Pelosi’s competence and mental state. In a since-deleted tweet, Giuliani shared a link to the altered video and wrote, “What is wrong with Nancy Pelosi? Versions of the altered video could still be foun
Facebook says the doctored Nancy Pelosi video used to question her mental state and viewed millions of times will stay up Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: lauren feiner
Keywords: news, cnbc, companies, times, twitter, speech, post, pelosi, facebook, used, youtube, policies, question, videos, viewed, stay, altered, video, nancy, millions, state


Facebook says the doctored Nancy Pelosi video used to question her mental state and viewed millions of times will stay up

Facebook has decided to keep an altered video of House Speaker Nancy Pelosi (D-Calif.) on its site that makes her speech appear slow and slurred, The Guardian reported Friday. Commenters, including President Donald Trump’s personal attorney Rudy Giuliani, have used the video to call into question Pelosi’s competence and mental state.

In a since-deleted tweet, Giuliani shared a link to the altered video and wrote, “What is wrong with Nancy Pelosi? Her speech pattern is bizarre.” Giuliani later appeared to apologize on Twitter for sharing the video.

Experts told The Washington Post that the video, which is taken from Pelosi’s appearance at a Center for American Progress event, appears to have been slowed down to about 75% of its original speed and modified for pitch. The alteration gives Pelosi an unnaturally slow, slurred speech pattern, which made several commenters wonder if she was drunk during the talk.

In a statement to the Guardian, a Facebook spokesperson said, “There’s a tension here: we work hard to find the right balance between encouraging free expression and promoting a safe and authentic community, and we believe that reducing the distribution of inauthentic content strikes that balance. But just because something is allowed to be on Facebook doesn’t mean it should get distribution. In other words, we allow people to post it as a form of expression, but we’re not going to show it at the top of News Feed.”

As of Friday, an altered version of the video remained on the Facebook page Politics WatchDog and had been viewed more than 2 million times.

Facebook did not immediately respond to CNBC’s request for comment.

Versions of the altered video could still be found on Twitter Friday as well. One user posted the altered video with the comment, “Please come get your drunk grandma @AOC #pelosi,” and the video had been viewed over 400 times. Twitter declined to comment.

Meanwhile, Google-owned YouTube removed the video from its platform, apparently determining the alteration did go too far. Like Facebook, YouTube has also suffered its share of criticism in the past for continuing to host content that walks the line of its policies.

“YouTube has clear policies that outline what content is not acceptable to post and we remove videos violating these policies when flagged to us,” a YouTube spokesperson said in a statement to CNBC. “These videos violated our policies and have been removed. They also did not surface prominently. In fact, search results and watch next panels about Nancy Pelosi include videos from authoritative sources, usually at the top.”

The video has drawn attention to the potential dangers of new technology that enables convincing alterations. Even though experts believe simple aspects like pitch and speed were changed in the Pelosi video, so-called deepfake technology uses artificial intelligence to modify videos even further. With the ability to mimic facial expressions, the possibilities for spreading misinformation could greatly expand.

Subscribe to CNBC on YouTube.

Watch: Facebook ends commissions for political ad sales


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: lauren feiner
Keywords: news, cnbc, companies, times, twitter, speech, post, pelosi, facebook, used, youtube, policies, question, videos, viewed, stay, altered, video, nancy, millions, state


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FAA says there’s no schedule for re-certifying Boeing 737 Max plane yet

There’s no schedule for re-certifying Boeing’s 737 Max and getting the plane back in the air, the U.S. Federal Aviation Authority (FAA) said on Thursday, after a day of discussions with aviation regulators from around the world. The decision to ground the planes came after an Ethiopian Airlines 737 Max 8 plane crashed in March, minutes after take-off, killing all 157 people aboard. “Once we have addressed the information requests from the FAA, we will be ready to schedule a certification test fl


There’s no schedule for re-certifying Boeing’s 737 Max and getting the plane back in the air, the U.S. Federal Aviation Authority (FAA) said on Thursday, after a day of discussions with aviation regulators from around the world. The decision to ground the planes came after an Ethiopian Airlines 737 Max 8 plane crashed in March, minutes after take-off, killing all 157 people aboard. “Once we have addressed the information requests from the FAA, we will be ready to schedule a certification test fl
FAA says there’s no schedule for re-certifying Boeing 737 Max plane yet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: phil lebeau
Keywords: news, cnbc, companies, boeing, plane, 737, theres, recertifying, faa, test, schedule, boeings, elwell, max, regulators, flight


FAA says there's no schedule for re-certifying Boeing 737 Max plane yet

There’s no schedule for re-certifying Boeing’s 737 Max and getting the plane back in the air, the U.S. Federal Aviation Authority (FAA) said on Thursday, after a day of discussions with aviation regulators from around the world.

“The last thing I want is to put a date out there for lifting the grounding,” said Dan Elwell, acting administrator for the FAA.

Elwell gave a fairly upbeat assessment of the dialogue between regulators during the day-long meeting at the FAA office in Fort Worth, Texas, where 57 industry leaders from 33 countries met two months after Boeing’s 737 Max was grounded.

The decision to ground the planes came after an Ethiopian Airlines 737 Max 8 plane crashed in March, minutes after take-off, killing all 157 people aboard. It was the second Max crash in less then six months.

In both accidents, investigators believe a contributing factor was the MCAS flight control system, which automatically pushes the plane’s nose down when data indicates the plane may stall.

“We appreciate the FAA’s leadership in taking this important step in bringing global regulators together to share information and discuss the safe return to service of the 737 MAX,” Boeing said in a statement after the FAA regulator meeting. “Once we have addressed the information requests from the FAA, we will be ready to schedule a certification test flight and submit final certification documentation.”

Since the grounding, Boeing engineers have completed a software patch that has been evaluated over the course of more than 200 test flights of the 737 Max. While Boeing says its work on the software fix is complete, the company has yet to validate it through a re-certification flight, nor has the company said when it will file a formal application to have the plane re-certified.

“We wait for Boeing’s completed application,” Elwell said about Boeing’s Max re-certification. As for countries around the world that also grounded the Max, Elwell says “each country has to make its own decisions.”


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: phil lebeau
Keywords: news, cnbc, companies, boeing, plane, 737, theres, recertifying, faa, test, schedule, boeings, elwell, max, regulators, flight


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Josh Brown: The power of compounding can help you double your money, again and again

One of my favorite things to do when I talk to investors is show them how compounding works. It’s one of the most important concepts that investors need to learn — the younger they are when they learn it, the better. But when I show they how money can double in an investment, again and again during the course of their lives, they’re still blown away. And yet so few people seem to have a good grasp of the power of compounding. WATCH: How to double your money


One of my favorite things to do when I talk to investors is show them how compounding works. It’s one of the most important concepts that investors need to learn — the younger they are when they learn it, the better. But when I show they how money can double in an investment, again and again during the course of their lives, they’re still blown away. And yet so few people seem to have a good grasp of the power of compounding. WATCH: How to double your money
Josh Brown: The power of compounding can help you double your money, again and again Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: josh brown
Keywords: news, cnbc, companies, compounding, brown, josh, wordwatch, york, money, learn, worksthe, power, typical, younger, double, help, investors


Josh Brown: The power of compounding can help you double your money, again and again

One of my favorite things to do when I talk to investors is show them how compounding works.

The look on people’s faces never disappoints. But demonstrating the rapid growth of dollars is more than just a parlor trick. It’s one of the most important concepts that investors need to learn — the younger they are when they learn it, the better.

In a typical public school curriculum, children are taught geometry, trigonometry, fractions, decimals and algebra.

But when I show they how money can double in an investment, again and again during the course of their lives, they’re still blown away.

Especially when I explain that time is a better friend to the investor than experience, connections, expertise, or even research.

And yet so few people seem to have a good grasp of the power of compounding. So I hit the streets of New York to spread the word!

WATCH: How to double your money


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: josh brown
Keywords: news, cnbc, companies, compounding, brown, josh, wordwatch, york, money, learn, worksthe, power, typical, younger, double, help, investors


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Dow set to rebound more than 100 points after Trump predicts a quick resolution to trade war

U.S. stock index futures rose on Friday after President Donald Trump said the ongoing trade war could be over quickly, but equities were still on pace to close lower for the week. Dow Jones Industrial Average futures rose 168 points, indicating a gain of 145 points at the open. Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei. The president’s comm


U.S. stock index futures rose on Friday after President Donald Trump said the ongoing trade war could be over quickly, but equities were still on pace to close lower for the week. Dow Jones Industrial Average futures rose 168 points, indicating a gain of 145 points at the open. Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei. The president’s comm
Dow set to rebound more than 100 points after Trump predicts a quick resolution to trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: fred imbert silvia amaro, fred imbert, silvia amaro
Keywords: news, cnbc, companies, quick, dow, futures, trump, war, rebound, tech, investors, trade, sp, set, stock, china, week, uschina, predicts, points, resolution


Dow set to rebound more than 100 points after Trump predicts a quick resolution to trade war

U.S. stock index futures rose on Friday after President Donald Trump said the ongoing trade war could be over quickly, but equities were still on pace to close lower for the week.

Dow Jones Industrial Average futures rose 168 points, indicating a gain of 145 points at the open. S&P 500 and Nasdaq 100 futures also pointed to solid gains at the open.

Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei.

The president’s comments lifted market sentiment at a time when investors are growing more convinced that the trade war will take longer than expected to conclude. The Dow and S&P 500 came into Friday’s session down more than 1% each for the week while the Nasdaq had lost 2.4%.

Crude prices are down more than 6% this week as trade worries spilled over to other markets. Investors also loaded up on Treasurys this week. On Thursday, the 10-year Treasury note yield fell to its lowest level since October 2017.

Energy and tech were the worst-performing sectors for the week coming into Friday. The energy sector is down 3.6% through Thursday’s close while tech — the largest S&P 500 sector by market weight — had lost 2.8%.

Chipmakers led tech down this week as the VanEck Vectors Semiconductor ETF (SMH) dropped 5.1%. Qualcomm and Broadcom are the worst-performers in the ETF this week, dropping 16.3% and 10.3%, respectively.

Apple shares also contributed to the tech losses as several analysts raised concern over the company’s exposure to China. The stock is down nearly 5% this week.

“The growing worries around a US/China elongated trade battle and its implications on the tech space are heavily weighing on the minds of both investors and the companies themselves caught in the cross hairs,” Dan Ives, analyst at Wedbush Securities, wrote in a note to clients. “The ‘poster child’ for the US/China trade wars continue to be Apple with the stock under heavy pressure as many competitors are yelling fire in a crowded theater around the potential China impact to Cupertino if this situation worsens.

In terms of data, the calendar is thin with only durable goods numbers out at 8:30 a.m. ET.


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: fred imbert silvia amaro, fred imbert, silvia amaro
Keywords: news, cnbc, companies, quick, dow, futures, trump, war, rebound, tech, investors, trade, sp, set, stock, china, week, uschina, predicts, points, resolution


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JP Morgan slashes second-quarter GDP forecast to just 1%

“The April durable goods report was bad, particularly the details relating to capital goods orders and shipments. The J.P. Morgan economists also changed their view on the Fed, and now do not expect the next move to be an interest rate hike. The durable goods report follows Thursday’s PPI manufacturing and services data that was also surprisingly weak. The J.P. Morgan economists said the key risks they see for U.S. growth include the uncertainty from the trade war, impacting business sentiment,


“The April durable goods report was bad, particularly the details relating to capital goods orders and shipments. The J.P. Morgan economists also changed their view on the Fed, and now do not expect the next move to be an interest rate hike. The durable goods report follows Thursday’s PPI manufacturing and services data that was also surprisingly weak. The J.P. Morgan economists said the key risks they see for U.S. growth include the uncertainty from the trade war, impacting business sentiment,
JP Morgan slashes second-quarter GDP forecast to just 1% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: patti domm
Keywords: news, cnbc, companies, jp, gdp, risks, report, morgan, forecast, growth, economists, slashes, yields, secondquarter, orders, quarter, goods


JP Morgan slashes second-quarter GDP forecast to just 1%

A truck hauls a shipping container at Yusen Terminals (YTI) on Terminal Island at the Port of Los Angeles in Los Angeles, California

J.P. Morgan economists said they now see much slower second-quarter growth of just 1%, down from their prior forecast of 2.25% and way off the 3.2% reported in the first quarter.

“The April durable goods report was bad, particularly the details relating to capital goods orders and shipments. Coming on the heels of last week’s crummy April retail sales report, it suggests second quarter activity growth is sharply downshifting from the first quarter pace, ” the economists wrote.

The Atlanta Fed’s GDP Now tracker has GDP growth for the first quarter at 1.3% for the quarter.

The J.P. Morgan economists also changed their view on the Fed, and now do not expect the next move to be an interest rate hike.

“We had previously expected the next move from the Fed would be a hike, albeit at the very end of our forecast horizon in late 2020. We now see the risks of the next move as about evenly distributed between a hike and a cut. We still sense little appetite on the FOMC for an insurance ease to goose inflation, but we see rising odds of ‘your father’s rate cut’: one prompted by downside growth risks,” they wrote.

The durable goods report follows Thursday’s PPI manufacturing and services data that was also surprisingly weak. That data helped fuel a stock market sell off and buying in Treasurys, which sent yields to 2017 lows. Yields move opposite price, and the low yields reflected concern about the economy.

The 10-year Treasury yield was at 2.32% Friday, after dipping as low as 2.29% Thursday. The fed funds futures market is reflecting expectations for more than 25 basis points of easing this year, and at least another cut in 2020.

“Net, net, business investment in the future is sputtering at the start of the second quarter as uncertainty and geopolitical risks are a heavy anchor that appears to be a big drag on companies’ willingness to order up new equipment,” noted Chris Rupkey, MUFG Union Bank chief financial economist. “Business confidence is clearly lacking in the manufacturing sector of the economy.”

Rupkey added that corporate chief financial officers may believe, as some surveys suggest, that the odds are increasing for a recession so they have canceled orders in March and ordered less equipment in April.

The J.P. Morgan economists said the key risks they see for U.S. growth include the uncertainty from the trade war, impacting business sentiment, and global economic slowing.

In the April durable goods report, total orders at manufacturers declined 2.1% last month, due to large declines of aircraft and motor vehicle orders. Beyond transportation, the J.P. Morgan economists noted that orders were flat last month and revised significantly lower in March.


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: patti domm
Keywords: news, cnbc, companies, jp, gdp, risks, report, morgan, forecast, growth, economists, slashes, yields, secondquarter, orders, quarter, goods


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