Girls can now join Boy Scouts and earn Eagle Scout rank

From Cub Scout to Eagle Scout, the Boy Scouts of America will now admit girls into every level of their Scouting program. Another program, scheduled to begin in 2019, will allow older girls the opportunity to earn the coveted Eagle Scout rank. “I’ve seen nothing that develops leadership skills and discipline like this organization,” said Randall Stephenson, Boy Scouts national board chairman and CEO of AT&T. The organization said Wednesday’s decision brings the Boy Scouts closer to “the values o


From Cub Scout to Eagle Scout, the Boy Scouts of America will now admit girls into every level of their Scouting program. Another program, scheduled to begin in 2019, will allow older girls the opportunity to earn the coveted Eagle Scout rank. “I’ve seen nothing that develops leadership skills and discipline like this organization,” said Randall Stephenson, Boy Scouts national board chairman and CEO of AT&T. The organization said Wednesday’s decision brings the Boy Scouts closer to “the values o
Girls can now join Boy Scouts and earn Eagle Scout rank Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: kevin breuninger, dennis hallinan, getty images
Keywords: news, games, cnbc, companies, packs, scouts, families, national, scout, boy, rank, program, eagle, join, organization, earn, leadership, girls


Girls can now join Boy Scouts and earn Eagle Scout rank

From Cub Scout to Eagle Scout, the Boy Scouts of America will now admit girls into every level of their Scouting program.

The organization announced on Wednesday that families can sign up their sons and daughters for Cub Scouts starting in the 2018 program year. Another program, scheduled to begin in 2019, will allow older girls the opportunity to earn the coveted Eagle Scout rank.

The board of directors unanimously approved the decision, the organization said in a press release.

“I’ve seen nothing that develops leadership skills and discipline like this organization,” said Randall Stephenson, Boy Scouts national board chairman and CEO of AT&T. “It is time to make these outstanding leadership development programs available to girls.”

In practice, Cub Scout “dens” — subdivisions of larger groups, called “packs” — will be segregated by gender. Existing packs may choose to establish new, separate packs for girls, opt for a co-ed pack, or remain an all-boy pack.

Founded more than a century ago, the Boy Scouts of America has been a ubiquitous presence for generations of American families and has at times found itself at the center of American politics.

In 2015, the organization’s national executive board lifted a decades-long ban on gay scout leaders one month after the U.S. Supreme Court declared same-sex marriage legal in all 50 states.

More recently, the organization entered the political news cycle when President Donald Trump addressed the Scouts’ national jamboree, giving a campaign-style speech to a crowd composed of a large proportion of kids ages 12 to 18.

The organization said Wednesday’s decision brings the Boy Scouts closer to “the values of Scouting — trustworthy, loyal, helpful, kind, brave and reverent,” said Chief Scout Executive Michael Surbaugh.

While allowing girls to enter the Boy Scouts is a new development, co-ed programs have been offered since 1971 through Exploring and the Venturing program, the organization said in a press release.

“We strive to bring what our organization does best — developing character and leadership for young people — to as many families and youth as possible as we help shape the next generation of leaders,” Surbaugh said.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: kevin breuninger, dennis hallinan, getty images
Keywords: news, games, cnbc, companies, packs, scouts, families, national, scout, boy, rank, program, eagle, join, organization, earn, leadership, girls


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Dangerous forces could shut down market rally: Dick Bove-commentary

The stock market seems to move higher every day relentlessly. The Investment Company Institute (ICI) publishes numbers showing how money flows into or out of the various funds it monitors. It noted that $193 billion was pulled out of actively managed mutual funds in the last quarter of 2016. In the fourth quarter last year, $52 billion was invested into passively managed mutual funds. Nothing will stop it as long as money keeps pouring into blind money investment facilities.


The stock market seems to move higher every day relentlessly. The Investment Company Institute (ICI) publishes numbers showing how money flows into or out of the various funds it monitors. It noted that $193 billion was pulled out of actively managed mutual funds in the last quarter of 2016. In the fourth quarter last year, $52 billion was invested into passively managed mutual funds. Nothing will stop it as long as money keeps pouring into blind money investment facilities.
Dangerous forces could shut down market rally: Dick Bove-commentary Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: richard x bove
Keywords: news, games, cnbc, companies, buy, computers, stocks, forces, billion, money, invested, rally, shut, stock, investment, funds, market, dangerous, bovecommentary, dick


Dangerous forces could shut down market rally: Dick Bove-commentary

The stock market seems to move higher every day relentlessly. It ignores events in doing so. The job numbers could be startling; the Fed may have shifted to a tightening policy; Congress might fail to pass positive economic legislation; or foreign developments could be unsettling; and, yet, the equity markets continue to plow higher. The key question is why is this happening?

The reason may be the new structure of the investment industry and what it means for investment.

The Investment Company Institute (ICI) publishes numbers showing how money flows into or out of the various funds it monitors. It noted that $193 billion was pulled out of actively managed mutual funds in the last quarter of 2016. Another $71 billion was taken out in the first eight months this year.

One would think this would cause stock prices to decline until one recognizes where the money is going. In the fourth quarter last year, $52 billion was invested into passively managed mutual funds. Another $162 billion went into these funds in the first 8 months this year. However, this is not all. Approximately $90 billion was invested into Exchange Traded Funds (ETFs) in the fourth quarter last year, and $79 billion more was invested in these funds so far this year.

Why does this matter?

As long as money flows into the markets, one might think it doesn’t matter where it comes from. Yet, it does matter because not all investment styles are the same.

Money in actively managed mutual funds may be thought of as reasoned money. The managers of these funds assess market conditions. They analyze the companies they are considering investing in. They make decisions as to what they want to buy and when they want to buy it based on contact with multiple sources and after long internal discussions held internally. They adhere to the “Prudent Man” rules. They know what they want to buy and when they want to buy it because they have completed serious study on the subject.

This is not how investing is done in passive funds and ETFs. I call this blind money. Managers of these funds have created a mathematically driven method of investing. The have a fund indenture that sets the rules of what should be bought and computers are programmed to invest according to the “script.” There are no discussions concerning what to invest in. There is no time spent investigating the individual companies to be invested in.

Perhaps, most importantly, there are no judgments made concerning when to invest. If the money comes in at 11:00 am it is going to be invested by 4:00 pm because it cannot be held out of the market. If some troubling event occurs, the money will be invested, irrespective of the event.

Moreover, if the investment causes the stocks targeted by the investment to rise, this triggers actions by others. Computers programmed to react to stock price movements and volumes may then begin putting more money in. Active managers may be impelled to act. The market moves higher even if North Korea detonates a hydrogen bomb. Nothing will stop it as long as money keeps pouring into blind money investment facilities.

So what?

While the good times keep rolling, and everyone is earnings sizable returns there is no “So what.”

However, this period is very similar to the 1990s when money plowed blindly into Internet related stocks in what former Fed Chairman Alan Greenspan called “Irrational Exuberance.” The 1990s boom ended when three events occurred. First, many new Internet concepts simply failed. Second, the economy fell into recession in 2000. Third, confidence in the markets waned and with it the desire to put new money to work buying stocks.

The current market boom would end if any of the following factors caused blind money to dry up. For example, the Trump agenda may not be executed. The Federal Reserve could dry up liquidity by shrinking its balance sheet too rapidly. The value of stocks driven by the boom might reach levels that simply would not justify further investment on a present value basis.

When confidence drops and money flows shift, the computers would act in reverse. They cannot call a bank for a short term loan to time the sale of stock. They must dump the issues into the market immediately. This will not be pretty if it happens. The probability of some event that causes a drop in confidence is high. The timing is unknown. When the computers reverse course, the decline will be sharp and short.

Commentary by Richard X. Bove, an equity research analyst at the Vertical Group and the author of “Guardians of Prosperity: Why America Needs Big Banks” (2013).

For more insight from CNBC contributors, follow @CNBCopinion on Twitter.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: richard x bove
Keywords: news, games, cnbc, companies, buy, computers, stocks, forces, billion, money, invested, rally, shut, stock, investment, funds, market, dangerous, bovecommentary, dick


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Teens say Under Armour is an ‘old brand,’ as Adidas and Vans grow more popular

Overall, only a third of teens say their favorite apparel brands are in the athletic category, down from more than 40 percent in the spring. 1 preferred apparel brand for teens, but it has lost share, falling from 29 percent of teens ranking it as their favorite to 23 percent. For average-income teens, Vans hits the top 10 apparel brand preference for the first time, led largely by the males. Piper Jaffray notes among upper-income females, Under Armour got only one vote as the preferred apparel


Overall, only a third of teens say their favorite apparel brands are in the athletic category, down from more than 40 percent in the spring. 1 preferred apparel brand for teens, but it has lost share, falling from 29 percent of teens ranking it as their favorite to 23 percent. For average-income teens, Vans hits the top 10 apparel brand preference for the first time, led largely by the males. Piper Jaffray notes among upper-income females, Under Armour got only one vote as the preferred apparel
Teens say Under Armour is an ‘old brand,’ as Adidas and Vans grow more popular Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: courtney reagan, david paul morris, bloomberg, getty images
Keywords: news, games, cnbc, companies, vans, adidas, wear, say, preferred, armour, falling, jaffray, teens, share, grow, brand, old, popular, apparel, piper, brands


Teens say Under Armour is an 'old brand,' as Adidas and Vans grow more popular

While athleisure has been popular across demographic groups, the survey suggests a shift in both fashion favor and brands among teens.

Overall, only a third of teens say their favorite apparel brands are in the athletic category, down from more than 40 percent in the spring. Piper Jaffray sees the trends moving towards “street, denim and festival wear.” Festival wear takes its fashion cues from Coachella and other events.

Nike is still the No. 1 preferred apparel brand for teens, but it has lost share, falling from 29 percent of teens ranking it as their favorite to 23 percent. Adidas and American Eagle Outfitters have picked up most of the share Nike has lost. Adidas has doubled its mindshare and is now the No. 3 preferred brand, particularly popular with the guys. American Eagle holds on to the No. 2 spot but with a higher share this year than last.

Street brand Supreme, which just locked in a reported $500 million minority stake from private equity firm Carlyle Group, cracks into the top 10 preferred apparel brands for the first time, led by the male cohort.

For average-income teens, Vans hits the top 10 apparel brand preference for the first time, led largely by the males.

Tommy Hilfiger cracked the top 20 for the first time for males.

Under Armour is again the No. 1 brand males classify as an “old brand” that they no longer wear. Piper Jaffray notes among upper-income females, Under Armour got only one vote as the preferred apparel brand.

As a result, Piper Jaffray analyst Erinn Murphy is lowering earnings estimates and her price target for shares of Under Armour.

Ralph Lauren is quickly falling out of favor with all teens, dropping out of the top 10 for upper-income teens and falling to No. 8 from No. 4 for average-income teens.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: courtney reagan, david paul morris, bloomberg, getty images
Keywords: news, games, cnbc, companies, vans, adidas, wear, say, preferred, armour, falling, jaffray, teens, share, grow, brand, old, popular, apparel, piper, brands


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NFL’s brand ‘clearly damaged’ over anthem flap, says CEO of world’s No. 2 ad agency

The NFL’s brand has been “clearly damaged” over the controversy of players protesting during the national anthem, ad executive Harris Diamond said Wednesday. Fans are annoyed by the political back-and-forth between President Donald Trump and the NFL players, and “that is a problem,” said Diamond, CEO of McCann Worldgroup, the world’s No. At an upcoming meeting, the league will discuss the nationwide dispute over whether players must stand during the national anthem, Commissioner Roger Goodell sa


The NFL’s brand has been “clearly damaged” over the controversy of players protesting during the national anthem, ad executive Harris Diamond said Wednesday. Fans are annoyed by the political back-and-forth between President Donald Trump and the NFL players, and “that is a problem,” said Diamond, CEO of McCann Worldgroup, the world’s No. At an upcoming meeting, the league will discuss the nationwide dispute over whether players must stand during the national anthem, Commissioner Roger Goodell sa
NFL’s brand ‘clearly damaged’ over anthem flap, says CEO of world’s No. 2 ad agency Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: berkeley lovelace jr
Keywords: news, games, cnbc, companies, flap, diamond, obviously, national, trump, clearly, agency, ad, anthem, tax, stand, brand, players, ceo, nfl, worlds, nfls, damaged


NFL's brand 'clearly damaged' over anthem flap, says CEO of world's No. 2 ad agency

The NFL’s brand has been “clearly damaged” over the controversy of players protesting during the national anthem, ad executive Harris Diamond said Wednesday.

Fans are annoyed by the political back-and-forth between President Donald Trump and the NFL players, and “that is a problem,” said Diamond, CEO of McCann Worldgroup, the world’s No. 2 ad agency.

“They obviously have to quiet it down,” Diamond told CNBC’s “Squawk Box.” “The NFL’s clearly been damaged. There’s no doubt about it.”

“At the end of the day, they need their players to believe that their teams believe in them. And this is obviously something that’s heartfelt, it’s emotional, it goes beyond business issues,” he added.

At an upcoming meeting, the league will discuss the nationwide dispute over whether players must stand during the national anthem, Commissioner Roger Goodell said in a copy of a memo obtained by CNBC.

Diamond didn’t say whether there was an “artful” way for the NFL to get past the controversy but said that at least “time heals all wounds.” “I do think that time will actually heal this,” Diamond said. “But the reality is we actually have to get beyond this.”

The firestorm started when then-San Francisco 49ers quarterback Colin Kaepernick kneeled during the national anthem last season to protest the treatment of African-Americans in the United States.

Trump later began tweeting about the issue and said players who don’t stand should be fired.

Earlier Tuesday, Trump tweeted that tax laws should be changed so that the NFL doesn’t get “massive tax breaks while at the same time disrespecting our Anthem, Flag and Country.”


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: berkeley lovelace jr
Keywords: news, games, cnbc, companies, flap, diamond, obviously, national, trump, clearly, agency, ad, anthem, tax, stand, brand, players, ceo, nfl, worlds, nfls, damaged


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Here’s why Stephen Miller is exactly what Trump’s White House needs right now

Whether you love, hate, or judge President Trump on each individual case, no one can deny this has been an extremely volatile first year. That’s Miller as in Stephen Miller, senior adviser to President Donald Trump, who now seems like a lone survivor of sorts after the firings of everyone from former White House Chief of Staff Reince Priebus to former senior counselor Steve Bannon. When then-candidate Trump made illegal immigration the kickoff issue for his campaign in 2015, Miller understandabl


Whether you love, hate, or judge President Trump on each individual case, no one can deny this has been an extremely volatile first year. That’s Miller as in Stephen Miller, senior adviser to President Donald Trump, who now seems like a lone survivor of sorts after the firings of everyone from former White House Chief of Staff Reince Priebus to former senior counselor Steve Bannon. When then-candidate Trump made illegal immigration the kickoff issue for his campaign in 2015, Miller understandabl
Here’s why Stephen Miller is exactly what Trump’s White House needs right now Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: jake novak, getty images
Keywords: news, games, cnbc, companies, heres, millers, needs, trumps, white, right, miller, trump, policy, immigration, senior, hes, consistent, work, president, stephen, house, exactly


Here’s why Stephen Miller is exactly what Trump’s White House needs right now

Let’s face it, it’s been a rough first nine months in office for the Trump administration. Whether you love, hate, or judge President Trump on each individual case, no one can deny this has been an extremely volatile first year.

But now, it’s Miller time.

That’s Miller as in Stephen Miller, senior adviser to President Donald Trump, who now seems like a lone survivor of sorts after the firings of everyone from former White House Chief of Staff Reince Priebus to former senior counselor Steve Bannon.

And despite Miller’s youth, (he’s only 32), combative political nature and history, his ascendancy could mean the end of the most serious problem for the Trump team: Policy inconsistency that borders on incoherence.

Miller has the advantage of pushing a consistent series of policy messages at least since he was a college student at Duke University. His most consistent cause, one that led him to a prominent position in Jeff Sessions’ Senate office, is illegal immigration and border security. When then-candidate Trump made illegal immigration the kickoff issue for his campaign in 2015, Miller understandably launched himself into Trump’s orbit. And when the Trump administration seemed to be wavering on illegal immigration toughness, Miller is credited with getting the team back to its roots on the issue. That shift back to the original course is more evident this week, as President Trump has started to mention border security and the wall in tweets that sound like something right out of Miller’s old playbook:

If the return to some sort of consistency and clarity on immigration is any indication, perhaps Miller will help the president do the same on taxes, infrastructure, and North Korea.

But consistent messaging isn’t where Miller’s positives end. He also has good experience working in Congress, and we all know the Trump team’s ability to work with the congressional GOP has been lacking. Priebus represented the establishment of the Republican Congress a little too much and never seemed to believe in some of Trump’s key messages on immigration enough to push them properly with his former colleagues on Capitol Hill. Miller brings a contrast to that; he’s familiar with the corridors of Congress and is also a true believer.

And compared to Bannon, Miller brings two other positives. First, he’s more of a seasoned policy ideologue. Bannon understood good communication tools and imagery from his days in Hollywood and running the Breitbart website, and that was pure gold for the campaign. But the campaign is long over, and now it’s time to execute policy and Miller is the better man for that.

Not everything about Miller is a total positive for the White House. Miller’s been extremely combative and seen things from something of a siege mentality since he was writing essays about how he feared Osama bin Laden would feel comfortable at his Santa Monica high school. It’s doubtful that a kumbaya-promoting senior adviser would work in this administration, but President Trump already has the combative thing down and doesn’t need any more of it.

Another negative is that for all his ideological differences with most of his peers in Washington, he has basically the same background as a child of upper middle class parents who went on to graduate an elite school and then came directly to work in D.C. He’s not quite a true outsider to organized politics like Bannon and President Trump himself.

But Miller’s positives outweigh his negatives for the Trump team. With new Chief of Staff John Kelly tasked with plugging leaks and other intramural mischief, consistent thinking ideologues like Miller can help keep the administration’s policy goals on target. And then these goals can either succeed or fail on then own merits, and not because they keep changing or never make any sense in the first place.

Commentary by Jake Novak, CNBC.com senior columnist. Follow him on Twitter @jakejakeny.

For more insight from CNBC contributors, follow @CNBCopinion on Twitter.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: jake novak, getty images
Keywords: news, games, cnbc, companies, heres, millers, needs, trumps, white, right, miller, trump, policy, immigration, senior, hes, consistent, work, president, stephen, house, exactly


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How Trump tax plan would alter mortgage interest deduction

Trump administration officials say their tax plan is designed to benefit the middle class. Even though the Trump measure would preserve the mortgage interest deduction, it’s confronting resistance from the real estate industry because it would likely reduce the number of people seeking the deduction. The National Association of Homebuilders says it might be open to eliminating the mortgage interest deduction so long as homeownership was protected elsewhere in the tax code through the use of a po


Trump administration officials say their tax plan is designed to benefit the middle class. Even though the Trump measure would preserve the mortgage interest deduction, it’s confronting resistance from the real estate industry because it would likely reduce the number of people seeking the deduction. The National Association of Homebuilders says it might be open to eliminating the mortgage interest deduction so long as homeownership was protected elsewhere in the tax code through the use of a po
How Trump tax plan would alter mortgage interest deduction Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: benjamin c tankersely, the washington post, getty images
Keywords: news, games, cnbc, companies, worth, average, trump, deduction, tax, mortgage, housing, alter, credit, interest, plan, households


How Trump tax plan would alter mortgage interest deduction

Each year, taxpayers subsidize America’s homeowners by roughly $70 billion, with the benefits flowing disproportionately to coastal areas with high incomes and pricey homes, from New York and Washington to Los Angeles and San Francisco.

The subsidy for homeowners comes in the form of a deduction from their taxes for the interest they pay on their mortgages. An affluent New Yorker, for example, would have saved an average of $3,694 in 2015, according to an analysis of IRS data released Wednesday by the real estate company Apartment List. In metro Los Angeles, the deduction was worth an average of $4,568, in San Francisco still more: $5,500.

But under President Donald Trump’s tax proposal, some Americans would likely be steered away from this tax break. Here’s why: Trump’s plan would double the standard deduction, which taxpayers can take if they don’t itemize deductions. The doubled standard deduction could exceed the savings many receive now from itemizing their expenses for housing, state and local taxes and related costs.

But the Trump plan would also eliminate many existing itemized deductions, including those for state and local taxes, so that some people who now itemize might end up paying more.

The president’s proposal would essentially marginalize the use of the mortgage interest deduction, which is the government’s primary form of direct housing assistance: It distributes three times more money this way than it does in the form of vouchers for impoverished renters.

Trump administration officials say their tax plan is designed to benefit the middle class. Yet it’s not clear from the scant details of the framework released so far how many families would enjoy lower tax bills and how many would face higher bills.

Even though the Trump measure would preserve the mortgage interest deduction, it’s confronting resistance from the real estate industry because it would likely reduce the number of people seeking the deduction.

Estimates by the real estate firm Zillow suggest that someone buying a home worth at least $305,000 today would still qualify for the deduction. But under the Trump plan, only homes worth $801,000 or more would receive the deduction.

This has led the industry to push back against the plan.

“We don’t want to go backwards — we don’t want to lose what incentives that we have,” said Jamie Gregory, deputy chief lobbyist for the National Association of Realtors.

The National Association of Homebuilders says it might be open to eliminating the mortgage interest deduction so long as homeownership was protected elsewhere in the tax code through the use of a possibly more generous tax credit. (A credit, which is subtracted from the amount of tax someone owes, is more generous than a deduction, which reduces the amount of income to be taxed.)

The advantage of moving to a credit is that more homeowners would be eligible to claim it than the 34 million who receive the mortgage interest deduction, said Rob Dietz, the homebuilder association’s chief economist. But there are no signs that the idea of a credit has gained traction within Congress or the White House.

Trump proclaimed in June that his tax plan would accelerate economic growth to ensure that “hard-working Americans enjoy a fair chance at becoming homeowners.”

Chris Salviati, a housing economist at Apartment List, noted that the main effect of the mortgage interest deduction is to enable people to spend more on homes rather than to increase ownership, which is near a 51-year low.

Though the benefits of tax breaks for housing skew most toward people in the top 20 percent of income, they also tend to help middle class Americans. Roughly half the households in metro Washington with incomes between $74,000 and $112,000 — a group that could be considered middle class in that area — take the mortgage interest deduction and saved an average $2,530 in 2015. The average home price in the Washington area is just below $400,000.

Areas with lower home values tend to benefit less from the deduction. A similar group of middle-income households in Indianapolis — where the average home cost around $140,000 — saved only $655 on average in 2015, and just 19 percent of them took the deduction. The savings for middle-income households are just $691 in Cleveland, $666 in Little Rock, Arkansas, and $673 in Memphis, Tennessee.

Yet the Apartment List analysis also indicates that Trump’s tax plan would do little for lower-income households. A mere 11 percent of households with income below 80 percent of the national median qualify for the mortgage interest deduction or rental housing vouchers.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: benjamin c tankersely, the washington post, getty images
Keywords: news, games, cnbc, companies, worth, average, trump, deduction, tax, mortgage, housing, alter, credit, interest, plan, households


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Trump threatens to ‘challenge’ NBC’s license; Comcast shares dip slightly

Shares of NBC-parent Comcast dipped slightly Wednesday after President Donald Trump tweeted about challenging the NBC network license. “The President is an incredible advocate of the First Amendment,” White House Press Secretary Sarah Sanders said during an Oct. 5 briefing. Comcast shares are up about 8.5 percent for the year. The White House declined further comment other than to refer CNBC to the tweet itself. Pentagon spokesperson Dana White told NBC “the secretary of Defense has many closed


Shares of NBC-parent Comcast dipped slightly Wednesday after President Donald Trump tweeted about challenging the NBC network license. “The President is an incredible advocate of the First Amendment,” White House Press Secretary Sarah Sanders said during an Oct. 5 briefing. Comcast shares are up about 8.5 percent for the year. The White House declined further comment other than to refer CNBC to the tweet itself. Pentagon spokesperson Dana White told NBC “the secretary of Defense has many closed
Trump threatens to ‘challenge’ NBC’s license; Comcast shares dip slightly Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: evelyn cheng
Keywords: news, games, cnbc, companies, house, license, nbc, white, challenge, trump, comcast, told, president, summer, threatens, nbcs, shares, slightly, dip, nuclear


Trump threatens to 'challenge' NBC's license; Comcast shares dip slightly

Shares of NBC-parent Comcast dipped slightly Wednesday after President Donald Trump tweeted about challenging the NBC network license.

“With all of the Fake News coming out of NBC and the Networks, at what point is it appropriate to challenge their License? Bad for country!” Trump said in a Wednesday tweet at 9:55 am ET.

Comcast trading volume jumped and the shares fell to their lows of the morning immediately following the tweet.

The stock was down 0.5 percent by late morning.

Trump’s tweet could raise fears of higher government scrutiny on Comcast, although networks are not licensed by any organization. The Federal Communications Commission requires licenses for individual radio and television stations.

“The President is an incredible advocate of the First Amendment,” White House Press Secretary Sarah Sanders said during an Oct. 5 briefing. “With the First Amendment, with those freedoms also come responsibilities. And you have a responsibility to tell the truth, to be accurate.”

Comcast shares are up about 8.5 percent for the year. The stock fell sharply in early September after one of its executives said the company expects a large subscriber loss during the third quarter.

The White House declined further comment other than to refer CNBC to the tweet itself. NBC did not return a call for comment.

The tweet about network licenses followed Trump’s 9:45 a.m., ET, tweet calling NBC News “fake” news for a story about U.S. nuclear arsenal. The early Wednesday NBC report, citing three officials, said Trump said this summer he would like a nearly “tenfold increase” in U.S. nuclear arsenal.

In response, a White House official speaking on the condition of anonymity told NBC that the nuclear arsenal was not a primary topic of the briefing this past summer. Pentagon spokesperson Dana White told NBC “the secretary of Defense has many closed sessions with the president and his Cabinet members. Those conversations are privileged.”

As a real estate tycoon, Trump was host of the NBC reality TV show “The Apprentice.”

Disclosure: Comcast is the owner of NBCUniversal, the parent company of CNBC and CNBC.com.

— CNBC’s Peter Schacknow contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: evelyn cheng
Keywords: news, games, cnbc, companies, house, license, nbc, white, challenge, trump, comcast, told, president, summer, threatens, nbcs, shares, slightly, dip, nuclear


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Central bankers face a crisis of confidence as models fail

Central bankers usurped the titans of Wall Street as the masters of the universe almost a decade ago. The holy grail for central bankers is to claim credibly that they have “anchored inflation expectations” at the target level. But few central bankers are happy with meeting targets only once they have moved the goalposts. For now, the public still trust the women and men who work in the marbled halls of central banks around the world. Central bankers might have been the masters of the universe o


Central bankers usurped the titans of Wall Street as the masters of the universe almost a decade ago. The holy grail for central bankers is to claim credibly that they have “anchored inflation expectations” at the target level. But few central bankers are happy with meeting targets only once they have moved the goalposts. For now, the public still trust the women and men who work in the marbled halls of central banks around the world. Central bankers might have been the masters of the universe o
Central bankers face a crisis of confidence as models fail Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: chris giles, getty images
Keywords: news, games, cnbc, companies, models, fail, unemployment, confidence, rate, bankers, central, face, crisis, economy, rates, banks, inflation, interest, cent


Central bankers face a crisis of confidence as models fail

Central bankers usurped the titans of Wall Street as the masters of the universe almost a decade ago. They rescued the global economy from the financial crisis, flooding the world with cheap money. They used their powers effectively to get banks lending again. Their actions raised asset prices, keeping business and consumer confidence up. Financial markets and populations hang on their words. But never have they been so vulnerable.

As they gather in Washington for the annual meetings of the International Monetary Fund, there is a crisis of confidence in central banking. Their economic models are failing and there are doubts whether they understand the effects of interest rates and other monetary policies on the economy.

In short, the new masters of the universe might not understand what makes a modern economy tick and their well-intentioned actions could prove harmful.

While there have long been critics of the power of central bankers on the left and the right, such profound doubts have never been so present within their narrow world. In the words of billionaire investor Warren Buffett, they risk being the next ones to be found swimming naked when the tide goes out.

The ability of central banks to resolve these questions does not just affect growth rates, but is fundamental to the health of the democracies of advanced economies, many of which have been assailed by populist uprisings.

“If we can’t get inflation back up [trouble lies ahead]. We can’t have political stability without wage growth,” says Adam Posen, head of the Peterson Institute and formerly a central banker at the Bank of England.

The root of the current insecurity around monetary policy is that in advanced economies — from Japan to the US — inflation is not behaving in the way economic models predicted.

Deflation failed to materialise in the depths of the great recession of 2008-09 and now that the global economy is enjoying its broadest and strongest upswing since 2010, inflationary pressures are largely absent. Even as the unemployment rate across advanced economies has fallen from almost 9 per cent in 2009 to less than 6 per cent today, IMF figures this week show wage growth has been stuck hovering around annual increases of 2 per cent. The normal relationships in the labour market have broken down.

Amid this forecasting nightmare, some frank talk is breaking out. Janet Yellen, chair of the US Federal Reserve and the world’s most important central banker, has been the most direct. “Our framework for understanding inflation dynamics could be mis-specified in some fundamental way,” she said last month. Her sentiments are spreading.

For Mark Carney, governor of the BoE, global considerations “have made it more difficult for central banks to set policy in order to achieve their objectives”. Mario Draghi, president of the European Central Bank, is keeping the faith for now, but observes, “the ongoing economic expansion . . . has yet to translate sufficiently into stronger inflation dynamics”.

Claudio Borio, chief economist of the Bank for International Settlements, which provides banking services to the world’s central banks, says: “If one is completely honest, it is hard to avoid the question: how much do we really know about the inflation process?”

The details of macroeconomic models are fiendishly complicated, but at their heart is a relationship — called the Phillips curve — between the economic cycle and inflation. The cycle can be measured by unemployment, the rate of growth or other variables, and the model predicts that if the economy is running hot — if unemployment falls below a long-run sustainable level or if growth is persistently faster than its speed limit — inflation will rise.

The models are augmented by a concept of inflation expectations, which keep inflation closer to a central bank’s target — usually 2 per cent — if the public trusts that central bankers will do whatever it takes to return inflation to that level after any temporary deviation. The holy grail for central bankers is to claim credibly that they have “anchored inflation expectations” at the target level.

In the model, the most important factors that explain price movements are therefore the degree to which the economy has room to grow without inflation, termed “slack” or “the output gap”, and the public’s inflation expectations.

The role of central banks in the model is to set the short-term interest rate. If a central bank sets its official interest rates low, people and companies will be encouraged to borrow more to spend and invest and discouraged from saving, boosting the economy in the short term. Higher interest rates cool demand.

The first fundamental problem with the model is, as Mr Borio says, “the link between measures of domestic slack and inflation has proved rather weak and elusive for at least a couple of decades”.

While Japan’s unemployment rate is now back down to the levels of the 1970s and 1980s boom, leaving little slack, inflation is barely above zero. In Britain, unemployment has almost halved since 2010, but wage growth has stuck resolutely at 2 per cent a year.

But many economists and central bankers are wedded to the underlying theory, which is about 30 years old, and seek to tweak it to explain recent events rather than ditch it in favour of less orthodox ideas. Such nips and tucks are occurring all over the world, although the explanations differ.

Ms Yellen has highlighted measurement issues in inflation and “idiosyncratic shifts in the prices of some items, such as the large decline in telecommunication service prices seen earlier in the year”. Similarly, the ECB is fond of a new definition — “super core inflation”, which strips out more items from the index and shows the bank performing better against its target than the headline measure. But few central bankers are happy with meeting targets only once they have moved the goalposts.

A second explanation is that the level of unemployment that is consistent with stable inflation has fallen. In 2013, the BoE thought the UK economy could not withstand unemployment falling below 7 per cent before wages and inflation would pick up. It now thinks that rate is 4.5 per cent. On this reasoning, inflation has been low because there was more slack in the economy than they had thought.

The problem with such explanations, as Daniel Tarullo, a Fed governor for eight years until April, notes, is that if central bankers keep changing their notion of sustainable unemployment levels “sound estimation and judgment are sometimes hard to differentiate from guesswork in attempting to see through transitory developments”.

A third explanation is that central bankers have been so successful in anchoring inflation expectations, companies do not seek to raise prices any faster and workers do not ask for wage rises even when jobs are plentiful.

Mr Draghi recently urged union pay bargainers to stop looking backward at inflation rates of the past when they negotiate wages, in a move that used to be unthinkable for a central banker. The problem with this explanation is both the self-serving reasoning and the fact that inflation expectations cannot be measured.

“Over my time at the Fed, I came to worry that inflation expectations are bearing an awful lot of weight in monetary policy these days, considering the range and depth of unanswered questions about them,” says Mr Tarullo.

The Bank of Japan, meanwhile, frets that companies are cutting employees’ hours and raising productivity rather than paying more, which is hampering its ability to push up inflation despite extremely low unemployment.

If it was not bad enough that the link between the economic cycle and inflation has broken down, the second fundamental problem in central banking is that estimates of the neutral rate of interest — seen as the long-term rate of interest that balances people’s desire to save and invest with their desire to borrow and spend — appear to have fallen persistently across the world.

The Fed’s central estimates of the real neutral interest rate has declined by nearly two-thirds in five years, from 2 per cent to 0.75 per cent. But the figures are again little more than guesswork. As Ms Yellen said, “[the neutral rate’s] value at any point in time cannot be estimated or projected with much precision”.

Whether it is because ageing populations want to save more or because of a global “savings glut”, as former Fed chair Ben Bernanke said, low rates no longer have the same impact, limiting the effectiveness of the medicine central banks want to administer.

Regardless of the terminology, the two problems combined suggest central bankers cannot easily determine whether their economies need stimulus or cooling and do not know whether their monetary tools are helping them do their job. And there is increasing concern, even expressed by Ms Yellen, that the underlying theoretical model might simply be rotten to the core and attempts to tweak it are futile.

“Essentially you are setting policy on things you don’t know and can’t measure and then reasoning after the fact,” says Mr Tarullo. His core argument is that central banks maintain an absolute faith in the model with absolutely no evidence to support it.

At a conference last month to celebrate the BoE’s 20 years of independence, Christina Romer, professor of economics at the University of California, Berkeley, urged central bankers to have a more open mind.

New research is needed to question whether current thinking is deficient, she said, “and if such research suggests our ideas explaining how the economy works are wrong or need to change, then central bankers need to embrace those ideas”.

The most aggressive critic of the consensus is Mr Borio of the BIS. He accuses central bankers of misunderstanding the drivers of inflation and their effects on the economy. His argument is that global forces of trade integration and technology are more convincing than concepts of domestic slack in explaining the absence of pricing power among companies and employees.

He asks: “Is it reasonable to believe that the inflation process should have remained immune to the entry into the global economy of the former Soviet bloc and China and to the opening up of other emerging market economies?”

His concern is that by keeping interest rates low, central bankers have no effect on inflation or the economy other than to increase the level of debt. The result is that it will be harder “to raise interest rates without causing economic damage, owing to the large debts and distortions in the real economy that the financial cycle creates”.

It is not a popular view, but it is no longer dismissed out of hand. Ms Yellen justified her stance on continuing to raise interest rates gradually in the face of persistently low inflation by appealing to concerns about debt.

“Persistently easy monetary policy might also eventually lead to increased leverage and other developments, with adverse implications for financial stability,” she said.

With central bankers credited for keeping the economic show on the road over the past decade, it will come as a shock to many to hear how little confidence they have in their models, their policies and their tools.

One question posed by Richard Barwell, a senior economist at BNP Paribas, is whether they should let on about how little they know. “It’s rather like Daddy is driving the car down a hill, turning round to the family and saying, ‘I’m not sure the brakes work, but trust me anyway’,” he says.

For now, the public still trust the women and men who work in the marbled halls of central banks around the world. But that confidence is fragile. Central bankers might have been the masters of the universe of the past decade, but they know well what happened to the previous holders of that title.

More from the Financial Times:

Walmart surges on upbeat earnings guidance

Brazil’s utility companies put out the welcome mat for China

Decoding cancer: a new age of precision medicine


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: chris giles, getty images
Keywords: news, games, cnbc, companies, models, fail, unemployment, confidence, rate, bankers, central, face, crisis, economy, rates, banks, inflation, interest, cent


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This chart shows we are entering the next rate supercycle: Louise Yamada

“I think the two-year yield has actually been telling us that interest rates are on their way for a reversal from the 36-year declining interest rate cycle, to a new rising interest rate cycle,” the managing director of Louise Yamada Technical Research Advisors said Tuesday on CNBC’s “Futures Now.” According to Yamada, the two-year yield has been in an “uptrend since 2013,” and in 2016 had actually broken a downtrend that was in place since 1981. Additionally the 10-year yield, according to Yama


“I think the two-year yield has actually been telling us that interest rates are on their way for a reversal from the 36-year declining interest rate cycle, to a new rising interest rate cycle,” the managing director of Louise Yamada Technical Research Advisors said Tuesday on CNBC’s “Futures Now.” According to Yamada, the two-year yield has been in an “uptrend since 2013,” and in 2016 had actually broken a downtrend that was in place since 1981. Additionally the 10-year yield, according to Yama
This chart shows we are entering the next rate supercycle: Louise Yamada Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: annie pei, daniel acker, bloomberg, getty images, chad slattery, ken cedeno, corbis, andrew harrer, david a grogan
Keywords: news, games, cnbc, companies, supercycle, 10year, technical, yield, louise, rate, chart, reversal, shows, rising, twoyear, interest, yamada, entering, cycle


This chart shows we are entering the next rate supercycle: Louise Yamada

Bond yields are hovering near their July highs, and technical analyst Louise Yamada says the charts are suggesting a rally in rates is signaling the beginning of a new cycle.

“I think the two-year yield has actually been telling us that interest rates are on their way for a reversal from the 36-year declining interest rate cycle, to a new rising interest rate cycle,” the managing director of Louise Yamada Technical Research Advisors said Tuesday on CNBC’s “Futures Now.”

According to Yamada, the two-year yield has been in an “uptrend since 2013,” and in 2016 had actually broken a downtrend that was in place since 1981. More recently, the two-year has surged to a yield of 1.5 percent from around 1.3 percent, a move that Yamada believes is “anticipating the Fed’s move in December.”

Additionally the 10-year yield, according to Yamada, is also showing signs of an even bigger rally. The 10-year is currently above its 200-day moving average even while caught in a “six-month consolidation,” but Yamada says if the 10-year can reach 2.5 percent, a move to 3 percent is certainly in the cards.

“Eventually, a breakout through 3 percent would, for us, define the reversal into a new rising interest rate cycle,” she said.

Bonds have sold off in the last month or so as the market increasingly predicts a Federal Reserve interest rate hike in December. According to the CME FedWatch tool, the market believes there is a more than 80 percent chance that a rate increase will occur then.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: annie pei, daniel acker, bloomberg, getty images, chad slattery, ken cedeno, corbis, andrew harrer, david a grogan
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Auto company Porsche launches a car subscription service

Porsche will start a “subscription service” for customers that could give them access to a number of their sports cars and SUVs, from $2,000 per month. Porsche Passport will start in November in Atlanta, the German company’s North American affiliate announced Tuesday. Expansion into other markets will be determined after feedback from Atlanta customers, a company spokesperson told The Verge on Tuesday. A subscription to Porsche Passport covers vehicle tax and registration, insurance, maintenance


Porsche will start a “subscription service” for customers that could give them access to a number of their sports cars and SUVs, from $2,000 per month. Porsche Passport will start in November in Atlanta, the German company’s North American affiliate announced Tuesday. Expansion into other markets will be determined after feedback from Atlanta customers, a company spokesperson told The Verge on Tuesday. A subscription to Porsche Passport covers vehicle tax and registration, insurance, maintenance
Auto company Porsche launches a car subscription service Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: tobias schwarz, afp, getty images
Keywords: news, games, cnbc, companies, service, subscription, porsche, models, access, car, passport, cars, vehicle, company, auto, atlanta, launches, customers


Auto company Porsche launches a car subscription service

Porsche will start a “subscription service” for customers that could give them access to a number of their sports cars and SUVs, from $2,000 per month.

Porsche Passport will start in November in Atlanta, the German company’s North American affiliate announced Tuesday. The automaker calls it a “white-glove” service intended to give users app-driven access to a different Porsche on a flexible schedule.

The pilot program being rolled out in metro Atlanta first is made possible through Clutch Technologies, LLC, which is part of the company’s Strategy 2025 that wants to cater to, “customers’ desire to experience our sports cars,” Porsche Cars North America president and CEO Klaus Zellmer said in a news release. Expansion into other markets will be determined after feedback from Atlanta customers, a company spokesperson told The Verge on Tuesday.

More from The Verge:

Autonomous cars without human drivers will be allowed on California roads starting next year

Uber is involved in at least five separate criminal investigations: report

Nvidia says its new supercomputer will enable the highest level of automated driving

A $2,000-per-month Porsche Passport membership would give customers access to models such as the 718 Boxster, the 718 Cayman S, and six other Porsche models; the more expensive $3,000-per-month plan gives a user the ability to drive one of 22 models, such as a Cayenne E-Hybrid.

A subscription to Porsche Passport covers vehicle tax and registration, insurance, maintenance, and detailing. There is a $500 activation fee at first and a credit check, but Apple iOS and Android users can then download the app and schedule same-day or future vehicle exchanges through the Porsche Passport app.

Porsche Passport now stands between fellow Volkswagen Group’s Audi on Demand service that currently operates in San Francisco as sort of a concierge rental service, as well as the subscription plan Care By Volvo. The Swedish automaker plans to debut that early next year with the new XC40 SUV, which will bundle insurance, maintenance, and washing into one flat fee with the car.

And for Porsche’s well-heeled customers, jumping into a different Porsche every day may seem like a perfect fit.


Company: cnbc, Activity: cnbc, Date: 2017-10-11  Authors: tobias schwarz, afp, getty images
Keywords: news, games, cnbc, companies, service, subscription, porsche, models, access, car, passport, cars, vehicle, company, auto, atlanta, launches, customers


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