US Treasurys edge higher as bond investors focus on data, auctions

On data front, consumer credit increased by $18.41 billion in May, or 5.8 percent. Oil prices were up at the start of the trading week after a three percent fall in the previous session. In oil markets, Brent crude traded at around $46.90 a barrel on Monday morning, up 0.04 percent, while U.S. crude was around $44.47 a barrel, up 0.54 percent.


On data front, consumer credit increased by $18.41 billion in May, or 5.8 percent. Oil prices were up at the start of the trading week after a three percent fall in the previous session. In oil markets, Brent crude traded at around $46.90 a barrel on Monday morning, up 0.04 percent, while U.S. crude was around $44.47 a barrel, up 0.54 percent.
US Treasurys edge higher as bond investors focus on data, auctions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: sam meredith
Keywords: news, games, cnbc, companies, edge, barrel, week, trading, crude, start, previous, prices, treasurys, focus, sessionin, bond, traded, percentoil, data, higher, investors, auctions


US Treasurys edge higher as bond investors focus on data, auctions

On data front, consumer credit increased by $18.41 billion in May, or 5.8 percent.

Oil prices were up at the start of the trading week after a three percent fall in the previous session.

In oil markets, Brent crude traded at around $46.90 a barrel on Monday morning, up 0.04 percent, while U.S. crude was around $44.47 a barrel, up 0.54 percent.


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: sam meredith
Keywords: news, games, cnbc, companies, edge, barrel, week, trading, crude, start, previous, prices, treasurys, focus, sessionin, bond, traded, percentoil, data, higher, investors, auctions


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Trump Treasury may reopen this loophole for companies stashing cash overseas

The White House ordered Treasury this spring to conduct a sweeping review of all tax regulations written during Obama’s last calendar year in office. The executive order directed the agency to find rules that were too costly or complex or that overstepped Treasury’s authority. The rule requires companies to provide additional documentation when lending money from foreign operations to those based in the United States. Under Obama, Treasury argued that the transactions amounted to transfer of equ


The White House ordered Treasury this spring to conduct a sweeping review of all tax regulations written during Obama’s last calendar year in office. The executive order directed the agency to find rules that were too costly or complex or that overstepped Treasury’s authority. The rule requires companies to provide additional documentation when lending money from foreign operations to those based in the United States. Under Obama, Treasury argued that the transactions amounted to transfer of equ
Trump Treasury may reopen this loophole for companies stashing cash overseas Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: ylan mui, getty images
Keywords: news, games, cnbc, companies, reopen, companies, business, stashing, stripping, white, trump, states, tax, cash, united, loophole, groups, overseas, regulations, organization, treasury


Trump Treasury may reopen this loophole for companies stashing cash overseas

“It is great to see the [Trump] administration recognize the detrimental impact that these regulations will have on America’s economic competitiveness,” Nancy McLernon, chief executive of the Organization for International Investment, said in a statement.

The White House ordered Treasury this spring to conduct a sweeping review of all tax regulations written during Obama’s last calendar year in office. The executive order directed the agency to find rules that were too costly or complex or that overstepped Treasury’s authority.

The interim results were made public Friday. Treasury identified eight rules that it said met at least one of the first two criteria, with the earnings stripping regulation the most significant on the list. Treasury said it will propose reforms ranging from streamlining to full repeal by Sept. 18.

McLernon’s organization and other influential interest groups, such as the Business Roundtable, have been calling on the White House to delay implementing the earnings stripping rule, which is slated to take effect Jan. 1, or rescind. Her organization said an analysis by PwC found a single Fortune 100 company would likely spend an initial $4 million to comply with the regulation and $1 million each year after that.

“If the regulations are left on the books and enter into full effect, they will increase the complexity of doing business in the United States,” trade groups including Business Roundtable said in a letter this spring. “We believe they will frustrate this administration’s goals of improving the US business climate, enhancing America’s global competitiveness, and driving economic growth and job creation — for all multinational businesses operating in the United States.”

The rule requires companies to provide additional documentation when lending money from foreign operations to those based in the United States. Under Obama, Treasury argued that the transactions amounted to transfer of equity — not debt — and therefore were not subject to preferential tax treatment. Business groups said the agency was not authorized to make that distinction.


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: ylan mui, getty images
Keywords: news, games, cnbc, companies, reopen, companies, business, stashing, stripping, white, trump, states, tax, cash, united, loophole, groups, overseas, regulations, organization, treasury


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Bank stocks are about to face another major challenge

The sector stocks, as measured by the SPDR S&P Bank ETF, has jumped about 7.5 percent since the beginning of June, most recently getting a post-stress-test push. However, banks face a number of headwinds, most of them coming from Washington. Goldman Sachs analysts say “policy uncertainty” continues to haunt banks, which along with energy, materials and industrials was supposed to fare best under the Trump administration’s economic agenda. “Commercial borrowers look to have adopted a wait-and-see


The sector stocks, as measured by the SPDR S&P Bank ETF, has jumped about 7.5 percent since the beginning of June, most recently getting a post-stress-test push. However, banks face a number of headwinds, most of them coming from Washington. Goldman Sachs analysts say “policy uncertainty” continues to haunt banks, which along with energy, materials and industrials was supposed to fare best under the Trump administration’s economic agenda. “Commercial borrowers look to have adopted a wait-and-see
Bank stocks are about to face another major challenge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: jeff cox, kevin lamarque, getty images
Keywords: news, games, cnbc, companies, face, goldman, sector, challenge, projected, trump, uncertainty, major, bank, banks, policy, note, ma, stocks, sp


Bank stocks are about to face another major challenge

To be sure, things have turned up lately for banks. Rising Treasury yields have been a benefit, as has the all-clear the Federal Reserve gave banks for their plans to return capital to shareholders through buybacks and dividends.

The sector stocks, as measured by the SPDR S&P Bank ETF, has jumped about 7.5 percent since the beginning of June, most recently getting a post-stress-test push. However, banks face a number of headwinds, most of them coming from Washington.

Goldman Sachs analysts say “policy uncertainty” continues to haunt banks, which along with energy, materials and industrials was supposed to fare best under the Trump administration’s economic agenda. Goldman said the issue has particularly hurt commercial and industrial lending and M&A activity. Announced deals in the U.S. fell nearly 16 percent in the first half of the year, according to Thomson Reuters.

“Commercial borrowers look to have adopted a wait-and-see approach, rather than taking on debt,” Goldman said in a note to clients. “This policy uncertainty can be partially attributed to a lack of personnel in key executive positions in the new administration. … While President Trump has fully confirmed his cabinet, we highlight that only 46 (8 percent) executive appointments requiring Senate confirmation have been finalized by the Senate.”

Analysts will have their eyes on a few key metrics outside of the usual top- and bottom-line numbers: consumer loan delinquencies, net interest margins and trading levels. Goldman estimates that fixed income, commodities and currencies activity — FICC, in industry parlance — will be off 24 percent on a quarterly basis and 16 percent annually. That, in turn, could weigh on M&A for the rest of the year.

“That being said, if we gain more clarity on US fiscal and economic policy, this trend could reverse,” the note said.

Earnings estimates in general have been coming down for the banks, though the profit outlook for the financial sector remains solid. However, that 6 percent projected earnings gain comes down to 2.8 percent when excluding the gaudy 20 percent projected for insurers.

Early results from S&P 500 companies, however, look strong. With just 5 percent of the index reporting, 78 percent have beaten on earnings and 87 percent on revenue, the latter being a record-setting pace.


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: jeff cox, kevin lamarque, getty images
Keywords: news, games, cnbc, companies, face, goldman, sector, challenge, projected, trump, uncertainty, major, bank, banks, policy, note, ma, stocks, sp


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Two catalysts that could trigger a stock market correction

Recent data have shown outflows from U.S. and European equities as well as from EM bond funds and reduced inflows to EM equities,” Citi strategists wrote. Citi said the stock market could be at risk if there is a global economic slowdown coupled with softer earnings. Global strategists at JPMorgan raised the flag on earnings, but pointed out that the second quarter should be strong. They said the second quarter of 2016 was the last quarter of negative earnings growth and should make for easy com


Recent data have shown outflows from U.S. and European equities as well as from EM bond funds and reduced inflows to EM equities,” Citi strategists wrote. Citi said the stock market could be at risk if there is a global economic slowdown coupled with softer earnings. Global strategists at JPMorgan raised the flag on earnings, but pointed out that the second quarter should be strong. They said the second quarter of 2016 was the last quarter of negative earnings growth and should make for easy com
Two catalysts that could trigger a stock market correction Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: patti domm, drew angerer, getty images
Keywords: news, games, cnbc, companies, equities, market, second, catalysts, growth, central, price, strategists, yields, stock, quarter, earnings, trigger, wrote, correction


Two catalysts that could trigger a stock market correction

In the past two weeks, sovereign yields have risen amid a seeming sea change in thinking about global central banks and interest rate direction, which started with hawkish comments from European Central Bank President Mario Draghi. The U.S. 10-year has followed the lead of the German bund, and rates have gone from about 2.12 percent on June 26 to 2.37 percent. The Fed also has sounded hawkish, emphasizing that it is on track to both slow down bond buying and raise interest rates before the end of the year.

“Rising bond yields have started to worry investors with signs of increased volatility across a number of risk assets and emerging markets. Recent data have shown outflows from U.S. and European equities as well as from EM bond funds and reduced inflows to EM equities,” Citi strategists wrote. But they also noted that earnings remain strong enough to support stocks for now.

Citi said the stock market could be at risk if there is a global economic slowdown coupled with softer earnings. Citi strategists also note that “monetary tightening could be a threat if central banks are perceived to have got ahead of the curve.” The strategists also said it would be negative for investor confidence if central banks perceive they need to tighten policy because of asset price inflation.

“For now, however, the team believes that there is sufficient earnings momentum to warrant further gains in equity markets, particularly in Europe and Japan. With return expectations in other asset classes still at multi-year lows, it is hard to see major rotation out of equities into defensive assets just yet,” they wrote. “The bull market in equities looks a bit old and tired, but it is not yet dead.”

Global strategists at JPMorgan raised the flag on earnings, but pointed out that the second quarter should be strong. “We note that in the US, the negative to positive earnings pre-announcement ratio is down to 1.9x, its lowest level in six years,” they wrote.

S&P 500 earnings are expected to be up 7.9 percent in the second quarter, following a 15 percent gain in first-quarter earnings, according to Thomson Reuters. The analysts said the first quarter benefited because the period a year ago was when the earnings recession in 2015 and 2016 troughed. They said the second quarter of 2016 was the last quarter of negative earnings growth and should make for easy comparison for this earnings season.

“[Second half] is where the problems could materialize in earnest,” they wrote. The strategists said there are three factors to consider about the rest of the year. One is that expectations for second-half growth are elevated, and the comparisons to last year will be more difficult than in the first half. In the U.S., the strategists noted that consensus estimates are for earnings growth of 7 to 8 percent in the third quarter, when excluding commodities and 12 to 15 percent in the fourth quarter.

Secondly, pricing could be weaker in the second half, and global producer price inflation is signaling a slowing in second-half earnings growth. The third issue could be economic growth with the potential for slower China momentum and some mixed U.S. data.

Price-earnings ratios are vulnerable to a slowdown in earnings growth. But they also are vulnerable to rising yields, the strategists note. According to their report, world price to earnings is 26 percent more expensive than it was ahead of the Fed’s tapering of quantitative easing in 2013.

The JPMorgan strategists warned in May about the potential for an equities consolidation and they recommended some profit-taking at the time.

“Interestingly, while EPS estimates have been lowered for Q2 and Q3 in the US, they have been raised for Q4. As a result, FY’17 forecasts have become more reliant on the delivery of Q4 earnings,” they wrote.


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: patti domm, drew angerer, getty images
Keywords: news, games, cnbc, companies, equities, market, second, catalysts, growth, central, price, strategists, yields, stock, quarter, earnings, trigger, wrote, correction


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Chuck Schumer to Mitch McConnell: Work with Democrats on fixing Obamacare

Senate Democrats on Monday pushed Senate Majority Leader Mitch McConnell to work with them on an Obamacare fix as Republicans returned to Washington facing growing doubts that they can pass their bill to overhaul the health-care system. In a letter to McConnell, Minority Leader Chuck Schumer and three other Democrats called on McConnell to “focus on immediately advancing policies to provide stability and certainty to the health insurance markets.” They asked Schumer to work with them in “advanci


Senate Democrats on Monday pushed Senate Majority Leader Mitch McConnell to work with them on an Obamacare fix as Republicans returned to Washington facing growing doubts that they can pass their bill to overhaul the health-care system. In a letter to McConnell, Minority Leader Chuck Schumer and three other Democrats called on McConnell to “focus on immediately advancing policies to provide stability and certainty to the health insurance markets.” They asked Schumer to work with them in “advanci
Chuck Schumer to Mitch McConnell: Work with Democrats on fixing Obamacare Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: jacob pramuk, alex wong, getty images
Keywords: news, games, cnbc, companies, told, schumer, work, fixing, democrats, republicans, mitch, leader, obamacare, pass, bill, votes, mcconnell, senate, chuck


Chuck Schumer to Mitch McConnell: Work with Democrats on fixing Obamacare

Senate Democrats on Monday pushed Senate Majority Leader Mitch McConnell to work with them on an Obamacare fix as Republicans returned to Washington facing growing doubts that they can pass their bill to overhaul the health-care system.

In a letter to McConnell, Minority Leader Chuck Schumer and three other Democrats called on McConnell to “focus on immediately advancing policies to provide stability and certainty to the health insurance markets.” They asked Schumer to work with them in “advancing measures that would have an immediate impact on improving the health care system for American families.”

Returning from a Fourth of July break with only three weeks until a recess for August, Republicans sit multiple votes short of the support needed to pass the Better Care Reconciliation Act. The Senate GOP is working on changes that could win over both its conservative and moderate wings, but those factions hold sometimes competing concerns about what it takes to improve the plan.

Sen. Pat Toomey, R-Pa., told CNBC on Monday he expects a revised version of the bill as early as Monday and still sees “a shot” of reaching the 50 votes needed to pass a plan. A spokesman for McConnell told CNBC that he does not “have any expectations of a bill release today,” though he noted that the majority leader has said a Congressional Budget Office score is “forthcoming.”


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: jacob pramuk, alex wong, getty images
Keywords: news, games, cnbc, companies, told, schumer, work, fixing, democrats, republicans, mitch, leader, obamacare, pass, bill, votes, mcconnell, senate, chuck


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Rival retailers look to steal some of Amazon’s Prime Day glory with their own deals

Amazon on Monday morning offered a “sneak peek” at some of the deals its reported 85 million Prime members will be able to choose from, as its third annual Prime Day kicks off at 9 pm ET. And with all the buzz, rival retailers are not about to sit on the sidelines. “But the only way they will draw attention away from Amazon is through great deals,” Barr said. Additionally, Prime members can download Amazon’s app to learn about deals up to 24 hours before they go live. A survey shows 76 percent o


Amazon on Monday morning offered a “sneak peek” at some of the deals its reported 85 million Prime members will be able to choose from, as its third annual Prime Day kicks off at 9 pm ET. And with all the buzz, rival retailers are not about to sit on the sidelines. “But the only way they will draw attention away from Amazon is through great deals,” Barr said. Additionally, Prime members can download Amazon’s app to learn about deals up to 24 hours before they go live. A survey shows 76 percent o
Rival retailers look to steal some of Amazon’s Prime Day glory with their own deals Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: lauren thomas
Keywords: news, games, cnbc, companies, prime, shoppers, look, members, day, research, amazons, steal, amazon, retailers, way, deals, rival, glory, online


Rival retailers look to steal some of Amazon's Prime Day glory with their own deals

Amazon on Monday morning offered a “sneak peek” at some of the deals its reported 85 million Prime members will be able to choose from, as its third annual Prime Day kicks off at 9 pm ET.

Among the bargains are a 50 percent markdown on the Amazon Echo, $50 off the August Smart Lock, and 30 percent off select Under Armour apparel.

And with all the buzz, rival retailers are not about to sit on the sidelines. Instead, they are hoping to capitalize on the heavier-than-normal shopping traffic online this week, too.

“We are seeing other big box retailers use Prime Day as an opportunity to capture shoppers’ appetite for deals and as way to compete against Amazon for share of wallet and mindset,” PwC’s Consumer Markets lead Steve Barr told CNBC.

“But the only way they will draw attention away from Amazon is through great deals,” Barr said. “July is becoming equivalent to November with month-long discounts to entice shoppers.”

This year, Amazon extended the length of its event to 30 hours, with new deals being featured on Amazon.com as often as every five minutes, the company said. Deals will be organized by so-called most-shopped-for themes. Additionally, Prime members can download Amazon’s app to learn about deals up to 24 hours before they go live.

A survey shows 76 percent of Prime Day shoppers visit other major online stores to research product ratings and reviews before making a purchase on Amazon, according to consumer research firm Bazaarvoice.


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: lauren thomas
Keywords: news, games, cnbc, companies, prime, shoppers, look, members, day, research, amazons, steal, amazon, retailers, way, deals, rival, glory, online


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How to spot the next stock market crash—commentary

Investors have learned that “it’s different this time” is the most dangerous rationale for buying into a market bubble. It’s easy to believe that the United States’ stock market has been fundamentally changed by the technology of trading itself or by one of the new contraptions that is supposed to make trading easier and investing safer but it just isn’t so. What investors haven’t learned, and what may help them avoid some of the damage from the next crash, is that rather than focusing on how th


Investors have learned that “it’s different this time” is the most dangerous rationale for buying into a market bubble. It’s easy to believe that the United States’ stock market has been fundamentally changed by the technology of trading itself or by one of the new contraptions that is supposed to make trading easier and investing safer but it just isn’t so. What investors haven’t learned, and what may help them avoid some of the damage from the next crash, is that rather than focusing on how th
How to spot the next stock market crash—commentary Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: scott nations, getty images, source
Keywords: news, games, cnbc, companies, investors, market, 2010, states, mortgage, united, stock, spot, crashes, 2008, crashcommentary, crash


How to spot the next stock market crash—commentary

Investors have learned that “it’s different this time” is the most dangerous rationale for buying into a market bubble. It’s easy to believe that the United States’ stock market has been fundamentally changed by the technology of trading itself or by one of the new contraptions that is supposed to make trading easier and investing safer but it just isn’t so.

What investors haven’t learned, and what may help them avoid some of the damage from the next crash, is that rather than focusing on how the next bubble might be different, they should remember all of the modern stock market crashes are astonishingly similar and they should watch for those similarities.

The genesis of my latest book, “A History of the United States in Five Crashes,” was the realization that each of the five modern stock market crashes, beginning with the Panic of 1907 and ending with the Flash Crash of May 6, 2010, exhibit astonishing similarities that we should be alert for. This doesn’t mean another crash is imminent. In fact, it’s probably years off. But less than two years passed between the meltdown of 2008 and the Flash Crash of 2010 and another crash is inevitable while we hope it is far off.

The market always rallies strongly before a crash – this is easy to recognize. The other similarities are camouflaged by changing circumstances but include the appearance of some external catalyst – the San Francisco earthquake of 1906 led to the Panic of 1907 when the rebuilding of the financial capital of the western United States vacuumed up liquidity around the world – and the appearance of some new financial contraption that is poorly understood and untested under stress and which injects leverage into a system that is on the ragged edge of equilibrium, pushing it into chaos. In 1987, that contraption was portfolio insurance; in 2008 it was the alphabet soup of mortgage-backed securities; and in 2010 it was algorithmic trading.

Another similarity is the presence of villains. Each crash has at least one and often several. Benjamin Strong was President of the newly-formed Federal Reserve Bank of New York during the 1920s and Strong’s misguided efforts to help his friend, Montague Norman, who was Governor of the Bank of England, return England to the gold standard following World War I caused Strong to recklessly lower interest rates in the United States despite knowing that low rates were fueling a “speculative orgy” in stocks and despite being repeatedly warned of the approaching danger. The result was the quintessential crash of October 1929.

With the advantage of perspective provided by the nearly ten years that have passed since the worst of the meltdown of 2008 it’s possible to recognize that villain. We now know about the abuses in the mortgage market which started with mortgage lending and ended with stupefyingly complex mortgage-backed derivatives including synthetic collateralized debt obligations and credit default swaps. The villain was the one responsible for regulating the entire mortgage process, from origination to securitization but who did nothing as all these mortgages were being written and all these mortgage derivatives were being ginned up and foisted on supposedly savvy institutional investors?


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: scott nations, getty images, source
Keywords: news, games, cnbc, companies, investors, market, 2010, states, mortgage, united, stock, spot, crashes, 2008, crashcommentary, crash


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This chart shows that gold is now at a ‘treacherous’ level

Gold futures have tumbled their way down to a key level, according to Miller Tabak equity strategist Matt Maley. Three days earlier, gold fell as low as $1,206.60 per troy ounce, its lowest level since mid-March. More generally, it’s been a tough few weeks for gold, which has slipped as bond yields have risen. From a chart perspective, gold is “at a key point right now” and “looks really treacherous right here,” Maley said on “Power Lunch.” “If we see a further lower low next week, it’s going to


Gold futures have tumbled their way down to a key level, according to Miller Tabak equity strategist Matt Maley. Three days earlier, gold fell as low as $1,206.60 per troy ounce, its lowest level since mid-March. More generally, it’s been a tough few weeks for gold, which has slipped as bond yields have risen. From a chart perspective, gold is “at a key point right now” and “looks really treacherous right here,” Maley said on “Power Lunch.” “If we see a further lower low next week, it’s going to
This chart shows that gold is now at a ‘treacherous’ level Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: alex rosenberg, getty images, umit bektas, david paul morris, bloomberg, source, lawrence mcdonald
Keywords: news, games, cnbc, companies, month, market, chart, level, going, treacherous, right, power, tough, really, shows, maley, gold


This chart shows that gold is now at a ‘treacherous’ level

Gold futures have tumbled their way down to a key level, according to Miller Tabak equity strategist Matt Maley.

Gold was trading at $1,207.60 on Monday. Three days earlier, gold fell as low as $1,206.60 per troy ounce, its lowest level since mid-March. The move followed an impressive nonfarm payrolls number that put the economy in brighter light, making safe-haven gold less attractive and perhaps making an additional Federal Reserve rate hike this year look more likely.

More generally, it’s been a tough few weeks for gold, which has slipped as bond yields have risen.

Signs of rising inflation are “coming back into the market,” Susquehanna head of derivative strategy Stacey Gilbert said Friday on CNBC’s “Power Lunch.” “The last time this happened, [which was] postelection, gold sold off almost 13 percent” to drop below $1,300.

“The options market is saying there’s a 20 percent probability we could finish at or below that level by year-end,” Gilbert added.

From a chart perspective, gold is “at a key point right now” and “looks really treacherous right here,” Maley said on “Power Lunch.”

In the past three months, the commodity has twice moved up to $1,300 and then turned down, he noted.

“A month ago it looked fabulous. Now it looks horrible. A month ago it rolled over immediately. So it’s going to have to bounce back immediately it it’s going to bounce at all,” since it has recently taken out several important levels of support, he said.

“If we see a further lower low next week, it’s going to be really tough,” Maley added in Friday’s interview.

Gold is up a bit more than 5 percent this year.


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: alex rosenberg, getty images, umit bektas, david paul morris, bloomberg, source, lawrence mcdonald
Keywords: news, games, cnbc, companies, month, market, chart, level, going, treacherous, right, power, tough, really, shows, maley, gold


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One of Prime Day’s most important deals has nothing to do with free shipping

Now the uneasy partnership between Amazon and Apple faces one of its biggest tests. A survey by Raymond James analyst Tavis McCourt estimates that 14 percent of iPhone users plan to buy a HomePod, while 16 percent plan to buy an Amazon Echo product. EMarketer estimates that Amazon has 44.1 percent of American over-the-top streaming video viewers, at 193.3 million. “And now Amazon is wrapping itself up with that personal assistant that you can talk to with a Prime Shopping day,” Isaacson said. La


Now the uneasy partnership between Amazon and Apple faces one of its biggest tests. A survey by Raymond James analyst Tavis McCourt estimates that 14 percent of iPhone users plan to buy a HomePod, while 16 percent plan to buy an Amazon Echo product. EMarketer estimates that Amazon has 44.1 percent of American over-the-top streaming video viewers, at 193.3 million. “And now Amazon is wrapping itself up with that personal assistant that you can talk to with a Prime Shopping day,” Isaacson said. La
One of Prime Day’s most important deals has nothing to do with free shipping Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: anita balakrishnan, david ryder, getty images, eric piermont, afp
Keywords: news, games, cnbc, companies, told, prime, echo, shipping, days, apple, video, amazon, users, deals, theyre, free, important, estimates, isaacson


One of Prime Day's most important deals has nothing to do with free shipping

Now the uneasy partnership between Amazon and Apple faces one of its biggest tests. A survey by Raymond James analyst Tavis McCourt estimates that 14 percent of iPhone users plan to buy a HomePod, while 16 percent plan to buy an Amazon Echo product.

EMarketer estimates that Amazon has 44.1 percent of American over-the-top streaming video viewers, at 193.3 million.

“Apple should have been dominant in the living room with Siri. They had a great product,” Walter Isaacson, president of the Aspen Institute, told CNBC’s “Squawk Alley” on Monday. “They’re going to try to get into it in three, four, five months. They’re going to have the third-mover disadvantage, because Google and Amazon are already there.

“And now Amazon is wrapping itself up with that personal assistant that you can talk to with a Prime Shopping day,” Isaacson said. “And so it’s not just about streaming video and music, where Amazon [is] also very good.”

Amazon’s made-up shopping holiday comes as technology companies are investing more heavily in content as a way to keep users on their platforms. Apple hopes that its services division will double by 2020 — and Pacific Crest analyst Andy Hargreaves estimates growth from the App Store or Apple Music may be key to driving that goal forward.

Despite being known for e-commerce, Amazon has become a formidable threat to Apple’s content business, according to a report from The Wall Street Journal on Sunday. Unnamed sources told the Journal that Apple’s market share in renting and selling movies had fallen as low as 20 percent over the past few years amid more competition from cable and Amazon.

Amazon’s Echo device also holds promise to capitalize on what Apple has had for years: a network effect. Tech investor Aaron Batalion of Lightspeed Venture Partners has posited that as Amazon facilitates phone calls between its customers, more buyers will want to stay within the Prime ecosystem so they can stay in contact with other Echo users.

If history is any indication, Tuesday’s sales will be a key indicator of whether Alexa is feeling the heat from Siri. Last year on Prime Day, sales of Amazon devices were up over 3 times compared to the year-ago period.

“They’re building an ecosystem,” Isaacson said.


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: anita balakrishnan, david ryder, getty images, eric piermont, afp
Keywords: news, games, cnbc, companies, told, prime, echo, shipping, days, apple, video, amazon, users, deals, theyre, free, important, estimates, isaacson


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Analyst sees 75 percent chance Kraft Heinz will revisit Unilever with hostile bid

Kraft Heinz isn’t finished with Unilever and could come back with a sweetened bid of around $200 billion for the Anglo-Dutch consumer goods conglomerate, according to a report. “We are now coming around to the view that a hostile bid for [Unilever] is more than 75 percent likely,” said Susquehanna analyst Pablo Zuanic in a research note Sunday. “By mid-August, the six-month hiatus required by British takeover law will have passed, and KHC could proceed to make a hostile bid for Unilever,” said t


Kraft Heinz isn’t finished with Unilever and could come back with a sweetened bid of around $200 billion for the Anglo-Dutch consumer goods conglomerate, according to a report. “We are now coming around to the view that a hostile bid for [Unilever] is more than 75 percent likely,” said Susquehanna analyst Pablo Zuanic in a research note Sunday. “By mid-August, the six-month hiatus required by British takeover law will have passed, and KHC could proceed to make a hostile bid for Unilever,” said t
Analyst sees 75 percent chance Kraft Heinz will revisit Unilever with hostile bid Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: jeff daniels
Keywords: news, games, cnbc, companies, chance, khc, 75, include, revisit, bid, zuanic, analyst, unilever, kraft, sees, heinz, hostile, billion, deal


Analyst sees 75 percent chance Kraft Heinz will revisit Unilever with hostile bid

Kraft Heinz isn’t finished with Unilever and could come back with a sweetened bid of around $200 billion for the Anglo-Dutch consumer goods conglomerate, according to a report.

“We are now coming around to the view that a hostile bid for [Unilever] is more than 75 percent likely,” said Susquehanna analyst Pablo Zuanic in a research note Sunday.

In February, U.S. food giant Kraft Heinz failed in its attempt to take over Unilever for $143 billion in a deal that was backed by two major investors in Kraft Heinz, private equity firm 3G Capital and Warren Buffett’s Berkshire Hathaway.

Zuanic estimates a new deal, however, would bring the takeover price “close to $200 billion.”

Even with a higher bid, he said a merger “remains a ‘good fit’ as with it KHC expands in food and builds an HPC [or home and personal care] platform.”

Unilever’s personal care brands include Dove, Vaseline and Pond’s, among others. Kraft Heinz’s major brands include Oscar Mayer, Grey Poupon, as well as its famous ketchup.

“By mid-August, the six-month hiatus required by British takeover law will have passed, and KHC could proceed to make a hostile bid for Unilever,” said the Susquehanna analyst.

Kraft Heinz and Unilever declined to comment.

“We think it is telling KHC has done nothing (M&A wise) for the past five months,” he said.

At the same time, Zuanic explained that a “rebuff/defeat is not something 3G/KHC can tolerate if they plan to continue to roll-up the [consumer packaged goods] space.”

Unilever’s U.S.-traded stock is up 34 percent so far this year and is also higher since the original proposal was rejected. Shares of Kraft Heinz are down almost 5 percent this year, while the broadly based S&P 500 Index is up more than 8 percent.

“We doubt anything less than a 20 percent premium could entice Unilever shareholders (assuming KHC goes hostile),” said Zuanic.

At around $200 billion, the analyst said the deal would be “25-35 percent equity funded” and adds that it could include “a mix of $10-$12 billion equity investments each by 3G and Berkshire.” Moreover, he believes asset sales from the combined company also might make a revised deal more palatable.

In particular, Zuanic said asset sales could generate between $25 billion and $35 billion. He said they could include everything from selling Unilever’s ice cream or cosmetics business to unloading Kraft Heinz’s frozen foods, coffee or Oscar Mayer businesses.

After the Unilever deal failed, Buffett was asked on CNBC’s “Squawk Box” about what happened and said the offer was not intended to be a “hostile offer,” but “may have been interpreted that way.”

Zuanic said “the impediment” for a deal to happen is not regulatory in nature but billionaire Buffett’s preference “to go where he is welcome” and not do hostile bids. Then again, the analyst believes Buffett “will come around.”

Regardless, Unilever’s CEO Paul Polman told “Mad Money” host Jim Cramer in May that the company was doing just fine on its own and he wasn’t impressed by the Kraft Heinz offer.

“In the end, our strategy…in investing is Warren’s strategy,” Polman said. “And my returns have been higher in the last eight years than Warren’s returns. So I think it’s better if he leaves us with what we know how to do well.”


Company: cnbc, Activity: cnbc, Date: 2017-07-10  Authors: jeff daniels
Keywords: news, games, cnbc, companies, chance, khc, 75, include, revisit, bid, zuanic, analyst, unilever, kraft, sees, heinz, hostile, billion, deal


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