Goldman sees oil rising toward $70, says demand forecasts are too gloomy

Oil prices have struggled to rally above $64 a barrel since last quarter’s sharp pullback, but Goldman Sachs believes crude futures could break out in the coming months. Goldman’s outlook is based on its view that forecasts for demand growth have grown too gloomy and OPEC has adopted a “shock and awe” approach to pulling back supply. “Our constructive outlook for oil prices in 1H19 is predicated on both large supply cuts as well as resilient oil demand growth,” Goldman analysts said in a researc


Oil prices have struggled to rally above $64 a barrel since last quarter’s sharp pullback, but Goldman Sachs believes crude futures could break out in the coming months. Goldman’s outlook is based on its view that forecasts for demand growth have grown too gloomy and OPEC has adopted a “shock and awe” approach to pulling back supply. “Our constructive outlook for oil prices in 1H19 is predicated on both large supply cuts as well as resilient oil demand growth,” Goldman analysts said in a researc
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Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: tom dichristopher, nick oxford
Keywords: news, cnbc, companies, sees, million, rising, outlook, forecasts, view, goldman, growth, grow, gloomy, demand, international, prices, oil, 70


Goldman sees oil rising toward $70, says demand forecasts are too gloomy

Oil prices have struggled to rally above $64 a barrel since last quarter’s sharp pullback, but Goldman Sachs believes crude futures could break out in the coming months.

The investment bank forecasts international benchmark Brent crude will peak at $67.50 a barrel in the second quarter. Goldman’s outlook is based on its view that forecasts for demand growth have grown too gloomy and OPEC has adopted a “shock and awe” approach to pulling back supply.

“Our constructive outlook for oil prices in 1H19 is predicated on both large supply cuts as well as resilient oil demand growth,” Goldman analysts said in a research note released on Tuesday evening.

Goldman believes the world’s appetite for oil will grow by 1.4 million barrels per day in 2019. That’s in line with the International Energy Agency’s outlook, but above the consensus on Wall Street and OPEC’s view that demand will grow by just 1.24 million bpd.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: tom dichristopher, nick oxford
Keywords: news, cnbc, companies, sees, million, rising, outlook, forecasts, view, goldman, growth, grow, gloomy, demand, international, prices, oil, 70


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$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he


There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he
$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


$60 to $70 is a fair price for a barrel of oil, Egypt's petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla.

“It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy.

“If prices of crude increase significantly we would start to see inflation and an exaggeration in the slowdown in consumption from the other side. If we see prices go down below a certain price then we will see a slowdown in investments,” he said.

“So, actually, the fair equation is to have a balanced price between the producers and the consumers whereby each party is happy and to continue the growth of the global economy.”

Egypt is a significant oil and natural gas producer in the Middle East although it’s not a member of OPEC and its output is dwarfed by members of the oil producing group and other non-OPEC producers like Russia.

Egypt is aiming to boost production modestly in 2019, to 670,000 barrels a day, although its output still trails that of others in the region. The latest figures from OPEC’s monthly report in January showed that Egypt’s oil producing neighbors to the west, Libya and Algeria, produced 928,000 barrels a day and a million barrels a day respectively in December. OPEC lynchpin Saudi Arabia produced 10.5 million barrels a day.

OPEC and non-OPEC producers including Russia (collectively known as ‘OPEC plus’) have collaborated in recent years on cutting or increasing their oil production in a bid to stabilize oil prices which have been volatile since 2014.

They last agreed in December to cut oil production by 1.2 million barrels a day in order to put a floor under prices, which have fallen due to rising oil supply and lackluster demand amid an uncertain global growth outlook.

On Monday morning, Brent crude futures were trading at $61.87 a barrel while West Texas Intermediate (WTI) crude futures was trading at $52.25 a barrel. Prices took a dip in the early trading session on Monday after data showed drilling activity in the U.S., now the world’s largest oil producer, had increased again, pointing higher production.

The OPEC-Plus deal has not yet been realized fully with Russia slower to meet the desired output cut. Once the 1.2 million barrel a day cut was reached, El Molla said “I think it will adjust, and reach, the desired outcome of price.”

Speaking to CNBC’s Dan Murphy at the Egypt Petroleum Show, ‘EGYPS, ‘taking place in Cairo, El Molla said oil markets were “somehow close” to a price that can keep both oil producers happy because although oil prices have fallen from peaks of around $114 a barrel in mid-2014, production costs have also fallen with technological advances.

“With the advancement of technology, new ways of producing oil have added new volumes to the market and this technology means you’re reducing the cost per barrel, and what might have been accepted a few years ago back when we were talking about $100, or $90 or $80, a barrel oil wouldn’t be accepted now.”


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


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Howard Schultz: America does not want Ocasio-Cortez’s 70% wealth tax

The billionaire elite expressed dismay at the direction the 29-year-old freshman firebrand from New York wants to take the nation. Schultz said the nation cannot afford the priorities of far-left Democrats, including full government-paid health insurance and college tuition. Some voices on the left, including in the wealthy donor class, called for boycotting Starbucks to protest a Schultz candidacy. In a tweet Monday, Trump said Schultz “doesn’t have the ‘guts’ to run for President!” WATCH: Prot


The billionaire elite expressed dismay at the direction the 29-year-old freshman firebrand from New York wants to take the nation. Schultz said the nation cannot afford the priorities of far-left Democrats, including full government-paid health insurance and college tuition. Some voices on the left, including in the wealthy donor class, called for boycotting Starbucks to protest a Schultz candidacy. In a tweet Monday, Trump said Schultz “doesn’t have the ‘guts’ to run for President!” WATCH: Prot
Howard Schultz: America does not want Ocasio-Cortez’s 70% wealth tax Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: matthew j belvedere
Keywords: news, cnbc, companies, win, thirdparty, democrats, wealth, trillion, president, schultzs, ocasiocortezs, howard, trump, 70, schultz, america, starbucks, tax, does


Howard Schultz: America does not want Ocasio-Cortez's 70% wealth tax

Schultz’s veiled criticism of Democratic socialist Ocasio-Cortez’s idea to tax earnings over $10 million at 70 percent matched the concerns of many of the uber-rich who attended the World Economic Forum in Davos, Switzerland, last week. The billionaire elite expressed dismay at the direction the 29-year-old freshman firebrand from New York wants to take the nation.

Earlier this month, Ocasio-Cortez told CBS’ “60 Minutes” that a wealth tax could help pay for a “Green New Deal” that would transition the U.S. away from fossil fuels.

In a “60 Minutes” interview that aired Sunday, Schultz, who built Starbucks into a global powerhouse during two tenures as chairman and CEO, said he’s “seriously thinking” of running for president “as a centrist independent, outside of the two-party system.”

“The way I’ve come to this decision is, I believe that if I ran as a Democrat, I would have to say things that I know in my heart I do not believe, and I would have to be disingenuous,” Schultz, a lifelong Democrat until now, further explained to Sorkin.

Schultz said the nation cannot afford the priorities of far-left Democrats, including full government-paid health insurance and college tuition. “We are sitting right now with a national debt of $21.5 trillion on the balance sheet of our country,” he said. “And if we were a company, if America was a company, at $21.5 trillion of debt, adding $1 trillion a year, we would be facing insolvency.”

The possibility of Schultz running as an independent has struck fear in the hearts of Democrats. A strong third-party candidacy from Schultz, provided he didn’t win, could act as a spoiler for Democrats, taking votes away from their nominee and leaving the White House in the hands of Trump or another Republican. Some voices on the left, including in the wealthy donor class, called for boycotting Starbucks to protest a Schultz candidacy.

Democrats want to avoid a situation like businessman Ross Perot’s third-party run in 1992. Perot won nearly 19 percent of the popular vote in the three-way race against GOP incumbent President George H.W. Bush and Democratic challenger Bill Clinton. The enthusiasm around Perot was blamed for giving the presidency to Clinton.

Trump himself weighed in on Schultz’s flirtation with presidential politics. In a tweet Monday, Trump said Schultz “doesn’t have the ‘guts’ to run for President!”

Schultz on Monday evening tried to reassure concerned Democrats, however: “I certainly am not going to do anything to put Donald Trump back in the Oval Office.”

WATCH: Protester says if Schultz runs for president, he will help Trump win


Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: matthew j belvedere
Keywords: news, cnbc, companies, win, thirdparty, democrats, wealth, trillion, president, schultzs, ocasiocortezs, howard, trump, 70, schultz, america, starbucks, tax, does


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Davos billionaires are ‘scared’ of Alexandria Ocasio-Cortez tax proposal

DAVOS, Switzerland – The elite financiers attending the World Economic Forum are worried about the 70 percent tax rate on earnings above $10 million proposed by freshman Rep. Alexandria Ocasio-Cortez, D-N.Y.”It’s scary,” Scott Minerd, global chief investment officer for $265 billion Guggenheim Partners, said in an interview. “And I think the likelihood that a 70 percent tax rate, or something like that, becomes policy is actually very real.” The billionaires and millionaires attending Davos had


DAVOS, Switzerland – The elite financiers attending the World Economic Forum are worried about the 70 percent tax rate on earnings above $10 million proposed by freshman Rep. Alexandria Ocasio-Cortez, D-N.Y.”It’s scary,” Scott Minerd, global chief investment officer for $265 billion Guggenheim Partners, said in an interview. “And I think the likelihood that a 70 percent tax rate, or something like that, becomes policy is actually very real.” The billionaires and millionaires attending Davos had
Davos billionaires are ‘scared’ of Alexandria Ocasio-Cortez tax proposal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: hugh son, brian schwartz, ira l black – corbis, corbis news, getty images, bill pugliano getty images, adam galica, scott mlyn
Keywords: news, cnbc, companies, economic, billionaires, davos, 70, minerd, ocasiocortez, rate, worried, alexandria, proposal, scared, attending, tax, world


Davos billionaires are 'scared' of Alexandria Ocasio-Cortez tax proposal

DAVOS, Switzerland – The elite financiers attending the World Economic Forum are worried about the 70 percent tax rate on earnings above $10 million proposed by freshman Rep. Alexandria Ocasio-Cortez, D-N.Y.

“It’s scary,” Scott Minerd, global chief investment officer for $265 billion Guggenheim Partners, said in an interview.

“By the time we get to the presidential election, this is going to gain more momentum,” said Minerd, who added that he would probably be personally impacted by it. “And I think the likelihood that a 70 percent tax rate, or something like that, becomes policy is actually very real.”

The billionaires and millionaires attending Davos had misgivings about Ocasio-Cortez’s proposal, which she made during a recent interview on CBS’ “60 Minutes.” A poll found that 59 percent of voters were in favor of the idea, and even 45 percent of Republicans liked it. The lawmaker has turned heads in Washington and on Wall Street with her left-wing economic rhetoric, despite only being sworn into office earlier this month. Ocasio-Cortez, who represents parts of Queens and the Bronx, identifies as a Democratic-Socialist.


Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: hugh son, brian schwartz, ira l black – corbis, corbis news, getty images, bill pugliano getty images, adam galica, scott mlyn
Keywords: news, cnbc, companies, economic, billionaires, davos, 70, minerd, ocasiocortez, rate, worried, alexandria, proposal, scared, attending, tax, world


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Alexandria Ocasio-Cortez has kick-started the Democratic tax debate with her 70% marginal rate idea

The tax furor triggered by Rep. Alexandria Ocasio-Cortez has opened debate on a core question for all Democrats: Where should government get more money? The top tax rate stood above 90 percent throughout the 1950s. But through deductions and tax avoidance, “taxes on the rich were not that much higher” then, the conservative Tax Foundation noted in a 2017 article. The top rate remained 70 percent as late as 1981, the first year of Ronald Reagan’s presidency. Former Fed chairman Alan Greenspan, fo


The tax furor triggered by Rep. Alexandria Ocasio-Cortez has opened debate on a core question for all Democrats: Where should government get more money? The top tax rate stood above 90 percent throughout the 1950s. But through deductions and tax avoidance, “taxes on the rich were not that much higher” then, the conservative Tax Foundation noted in a 2017 article. The top rate remained 70 percent as late as 1981, the first year of Ronald Reagan’s presidency. Former Fed chairman Alan Greenspan, fo
Alexandria Ocasio-Cortez has kick-started the Democratic tax debate with her 70% marginal rate idea Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: john harwood, bill pugliano getty images
Keywords: news, cnbc, companies, economic, medicare, marginal, revenue, income, need, alexandria, rate, taxes, kickstarted, tax, debate, idea, sen, democratic, ocasiocortez, 70


Alexandria Ocasio-Cortez has kick-started the Democratic tax debate with her 70% marginal rate idea

The tax furor triggered by Rep. Alexandria Ocasio-Cortez has opened debate on a core question for all Democrats: Where should government get more money?

Virtually none doubt the need for new revenue. Aside from new programs the party favors, the federal budget deficit is already projected to top $1 trillion in 2019 and keep rising for years.

Ocasio-Cortez, the 29-year-old Democratic firebrand who just took her seat to represent the Bronx in the House, has sparked headlines by suggesting rates as high as 70 percent to finance a “Green New Deal.” That drew swift derision from House GOP Whip Steve Scalise, who summarized it as “Take away 70 percent of your income and give it to leftist fantasy programs.”

In fact, Ocasio-Cortez didn’t propose taking 70 percent of anyone’s income. She suggested applying the rate only to earnings beyond $10 million, meaning those affected would pay a much lower share of their income overall.

The top tax rate stood above 90 percent throughout the 1950s. But through deductions and tax avoidance, “taxes on the rich were not that much higher” then, the conservative Tax Foundation noted in a 2017 article.

The top rate remained 70 percent as late as 1981, the first year of Ronald Reagan’s presidency. The most affluent 1 percent paid a far lower average rate of 30.5 percent, however, according to a Tax Policy Center analysis. By 1989, when Reagan left office, the top rate had been slashed to 28 percent but their average rate dropped only slightly to 27.9 percent.

After three decades with top rates below 40 percent, a big hike from today’s 37 percent poses risks politically and perhaps economically. Self-described socialist Sen. Bernie Sanders stopped at a 54.2 percent for incomes above $10 million in his 2016 presidential campaign proposal; Democratic nominee Hillary Clinton proposed 43.6 percent for those earning above $5 million.

With little prospect of success under President Donald Trump, the new House Democratic majority has avoided the issue in its initial legislative agenda. But the party’s gathering field of 2020 presidential candidates won’t have that luxury.

The only formally declared Democratic candidate, former Rep. John Delaney of Maryland, wants to finance infrastructure projects by raising the recently enacted 21 percent top corporate rate to 25 percent. Sen. Kamala Harris of California has proposed curbing income inequality by rolling back all the Trump tax cuts in favor of expanded tax credits for modest earners.

“You’ve got to ask, ‘What constitutes a fair share in this economy?'” Massachusetts Sen. Elizabeth Warren told me in a recent Speakeasy interview. She conceded that 1950s-era rates “sound pretty shockingly high,” but declined to specify what she favors.

Betsey Stevenson, a former economic adviser to President Barack Obama, favors other targets: eliminating the “step-up” valuation that lets some inherited assets avoid capital gains taxes, and capping tax deductions for the wealthy. Those two combined would raise more than the $700 billion over 10 years that Ocasio-Cortez’s idea would and, she argues, make better economic sense.

“Finding new revenue is exactly where Democrats should be,” Stevenson explained. But a big top-rate hike “would not be the first thing I would do, it would be the last thing.”

How much revenue Democrats need depends on what new programs they ultimately pursue. Analysts have priced Sanders’ “Medicare for All” plan at $32 trillion; Sen. Sherrod Brown backs a far less expensive Medicare “buy-in” for 55 and over.

Republican resistance casts doubts on prospects for new taxes in any event. Former Fed chairman Alan Greenspan, for example, warns a 70 percent top income tax rate would prove a “terrible mistake” by dampening economic activity.

As the party of limited government, the GOP opposes most new programs however they’re paid for. As deficits balloon following their tax cuts, GOP leaders suggest curbing the massive Social Security and Medicare programs.

But the demographic tidal wave of baby boomer retirements will swamp any politically feasible “entitlement reform.” The 2019 deficit will exceed the entire Medicare budget, and the government projects the number of Americans 65 and older will jump 50 percent to 77 million in 15 years.

That’s why Douglas Holtz-Eakin, who advised President George W. Bush, agrees that governments led by either party will eventually need more revenue. He prefers taxing consumption instead of income on economic grounds, though any new taxes will strain America’s polarized political system.

“We will need all the economic growth we can get, we need to control spending, and we need to raise revenue,” Holtz-Eakin said, recounting advice he recently gave House Republicans. “It’s going to be ugly.”


Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: john harwood, bill pugliano getty images
Keywords: news, cnbc, companies, economic, medicare, marginal, revenue, income, need, alexandria, rate, taxes, kickstarted, tax, debate, idea, sen, democratic, ocasiocortez, 70


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Alexandria Ocasio-Cortez floats 70% tax on wealthy to pay for ‘Green New Deal’

Asked for a specific proposal, Ocasio-Cortez suggested the plan might require returning to policies that preceded the overhauls of the 1980s, which significantly reduced the top income tax rate. “You know, you look at our tax rates back in the ’60s and when you have a progressive tax rate system, your tax rate, you know, let’s say, from zero to $75,000 may be 10 percent or 15 percent, et cetera,” she told “60 Minutes.” The top tax rate dropped to 37 percent following the passage of the 2017 Tax


Asked for a specific proposal, Ocasio-Cortez suggested the plan might require returning to policies that preceded the overhauls of the 1980s, which significantly reduced the top income tax rate. “You know, you look at our tax rates back in the ’60s and when you have a progressive tax rate system, your tax rate, you know, let’s say, from zero to $75,000 may be 10 percent or 15 percent, et cetera,” she told “60 Minutes.” The top tax rate dropped to 37 percent following the passage of the 2017 Tax
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Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: tom dichristopher, reuters carlos barria
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Alexandria Ocasio-Cortez floats 70% tax on wealthy to pay for 'Green New Deal'

Rep. Alexandria Ocasio-Cortez of New York says her plan to transition the United States away from fossil fuels would require people to “start paying their fair share in taxes.”

That could mean taxing the wealthiest Americans at a rate of 60-70 percent, the freshman Congresswoman told CBS’s “60 Minutes” in an interview scheduled to air on Sunday.

Ocasio-Cortez has put forward a “Green New Deal” that includes generating all of the nation’s power from renewable sources, building a national smart grid and entirely eliminating industrial greenhouse gas emissions. A proposal from the democratic socialist lawmaker calls for achieving those goals within 10 years.

In the “60 Minutes” interview, Ocasio-Cortez acknowledges that taxes would have to rise to underwrite the necessary investments. Asked for a specific proposal, Ocasio-Cortez suggested the plan might require returning to policies that preceded the overhauls of the 1980s, which significantly reduced the top income tax rate.

“You know, you look at our tax rates back in the ’60s and when you have a progressive tax rate system, your tax rate, you know, let’s say, from zero to $75,000 may be 10 percent or 15 percent, et cetera,” she told “60 Minutes.”

“But once you get to, like, the tippy tops, on your 10 millionth dollar, sometimes you see tax rates as high as 60 or 70 percent. That doesn’t mean all $10 million are taxed at an extremely high rate, but it means that as you climb up this ladder you should be contributing more.”

The top tax rate dropped to 37 percent following the passage of the 2017 Tax Cuts and Jobs Act.

In her written proposal, Ocasio-Cortez previously said “progressive wealth taxes” could be set to fund investments under the Green New Deal. She also suggested imposing taxes on greenhouse gas emissions, tapping the Federal Reserve for credit and having the government take an equity stake in projects.

Ocasio-Cortez has clashed with centrist Democrats and the party’s establishment over how ambitiously the left should tackle climate change.

She lost an early battle to establish a Select Committee for a Green New Deal. Speaker Nancy Pelosi has instead announced plans to revive a select committee on climate change that will be chaired by Rep. Kathy Castor, a seasoned lawmaker from Florida.


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: tom dichristopher, reuters carlos barria
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Tesla’s biggest bear says stock will tank 70 percent in 2019

“If you take the Q3 numbers and you annualize them, I think Q3 is going to be the high-water mark for Tesla. I don’t think they’re ever going to reach that level of earnings again,” he said Thursday on CNBC’s “Trading Nation.” … Tesla’s incentive is being cut in half and I think you’re going to have a huge falloff of sales in the first quarter.” “I think you’re going to have huge cancellations. We think they fully exhausted their US backlog and we think you’re going to see that in 1Q.


“If you take the Q3 numbers and you annualize them, I think Q3 is going to be the high-water mark for Tesla. I don’t think they’re ever going to reach that level of earnings again,” he said Thursday on CNBC’s “Trading Nation.” … Tesla’s incentive is being cut in half and I think you’re going to have a huge falloff of sales in the first quarter.” “I think you’re going to have huge cancellations. We think they fully exhausted their US backlog and we think you’re going to see that in 1Q.
Tesla’s biggest bear says stock will tank 70 percent in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-03  Authors: pippa stevens, mason trinca, the washington post, getty images, ken cedeno, corbis, elijah nouvelage, misha friedman, bloomberg, kcna
Keywords: news, cnbc, companies, biggest, teslas, stock, think, tesla, company, youre, sales, 2019, johnson, tank, production, trading, q3, going, bear, 70


Tesla's biggest bear says stock will tank 70 percent in 2019

Just two trading days into the new year, shares of Tesla were already down nearly 10 percent. According to Vertical Research Group’s Gordon Johnson, this is only the tip of the iceberg for what’s to come.

Johnson has an $88 year-end price target on the stock, which means he believes the automaker will lose 70 percent of its value in the coming year. For perspective, the average analyst price target for the stock is $334, according to FactSet.

“If you take the Q3 numbers and you annualize them, I think Q3 is going to be the high-water mark for Tesla. I don’t think they’re ever going to reach that level of earnings again,” he said Thursday on CNBC’s “Trading Nation.” “If you look at what the stock’s trading at, you’re talking about like you know near a 100 times multiple on those earnings, and the company is clearly not growing at that level.”

The “high water” mark that Johnson is referring to is Q3 results, reported in October, when the company topped car delivery estimates and posted a surprise profit. Tesla finished October with a gain of more than 27 percent — its best month in more than 4½ years.

But what a difference a quarter makes.

On Wednesday shares fell as much as 10 percent after the company missed Q4 delivery estimates and announced a $2,000 price cut on all of its models to help offset a reduction in federal tax credits for drivers who buy electric vehicles. The $7,500 federal tax credit for Tesla cars was cut in half as of Tuesday.

The selling was abated on Friday morning following reports the company would begin delivering its Model 3 to China in March.

Tesla bulls have long believed that if the company could ramp up production, there would always be buyers lining up for the cars. But Johnson argues that the demand just isn’t there, and that increasing competition as well as a reduction in government subsidies will steer consumers in alternate directions.

“They’ve been unchallenged up until now, essentially. They don’t have real competition coming in until the second half of ’19. … Tesla’s incentive is being cut in half and I think you’re going to have a huge falloff of sales in the first quarter.”

Because Tesla sells its cars directly to consumers rather than going through the traditional dealership approach, Johnson argues there could be some discrepancies in how its inventory is being reported. He also believes there will be massive cancellations after the government subsidy for electric vehicles was slashed in half.

“I think you’re going to have huge cancellations. We believe roughly 155,000 … that’s a big deal. We think they fully exhausted their US backlog and we think you’re going to see that in 1Q. We don’t think it’s going to be like a 10-15 percent falloff in sales. We think it’s going to be astronomically higher than that, and I think it will shock people to the downside.”

Finally, he believes the company’s AI software, which many have regarded as ahead of its peers, is actually not best-in-class. Johnson thinks that after recent high-profile crashes, consumers will be tempted to look elsewhere.

The confluence of all of these factors leads Johnson to believe that the stock’s more than 22 percent slide from its 52-week intraday high of $387.46, hit in August is just the beginning of a steeper sell-off.

“While there is some risk on the 4Q18 print, we would be aggressively shorting TSLA now as the growth narrative appears at risk … even for the bulls,” he wrote Thursday in a note to clients.

To be fair, Gordon has predicted a massive decline for Tesla for some months now, but he is more convinced than ever that it will happen sooner than Wall Street expects.

When asked for comment, a Tesla spokesperson referred CNBC to the company’s recent production update. In that deliveries and production release, Tesla said opportunities to expand Model 3 sales exist in international markets, including Europe and China, while deliveries in 2018 totaled more than in any of its previous years combined. The company also said it had nearly tripled its delivery run rate last year.

—CNBC’s Dawn Kopecki contributed.


Company: cnbc, Activity: cnbc, Date: 2019-01-03  Authors: pippa stevens, mason trinca, the washington post, getty images, ken cedeno, corbis, elijah nouvelage, misha friedman, bloomberg, kcna
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Bitcoin crashes 37 percent in November, wiping $70 billion off of cryptocurrencies’ market value

Bitcoin hit a low of $3,878.66 Friday after starting November above the $6,300 mark. The market capitalization of all major cryptocurrencies took a $70 billion hit for the month, according to CoinMarketCap.com. That digital currency split into two versions: “Bitcoin ABC” or “Bitcoin SV,” short for “Satoshi’s Vision” in mid-November. “While the split occurred on a different blockchain, there were still spill-over effects on other cryptos, including bitcoin,” Moro said. Regulators stepped up enfor


Bitcoin hit a low of $3,878.66 Friday after starting November above the $6,300 mark. The market capitalization of all major cryptocurrencies took a $70 billion hit for the month, according to CoinMarketCap.com. That digital currency split into two versions: “Bitcoin ABC” or “Bitcoin SV,” short for “Satoshi’s Vision” in mid-November. “While the split occurred on a different blockchain, there were still spill-over effects on other cryptos, including bitcoin,” Moro said. Regulators stepped up enfor
Bitcoin crashes 37 percent in November, wiping $70 billion off of cryptocurrencies’ market value Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: kate rooney, yu chun christopher wong, getty images
Keywords: news, cnbc, companies, digital, ceo, worlds, moro, billion, value, crashes, hit, wiping, bitcoin, exchange, 37, market, 70, coin, offerings, cryptocurrencies, cryptocurrency


Bitcoin crashes 37 percent in November, wiping $70 billion off of cryptocurrencies' market value

November will be a month to remember for bitcoin investors.

The world’s largest cryptocurrency ended November down 37 percent, its worst drop since April 2011 when the cryptocurrency fell about 39 percent, according to data from CoinDesk.

Bitcoin hit a low of $3,878.66 Friday after starting November above the $6,300 mark. The digital currency is now down more than 70 percent since the start of 2018 and 80 percent from its all-time high hit late last year.

The market capitalization of all major cryptocurrencies took a $70 billion hit for the month, according to CoinMarketCap.com. XRP, the world’s second largest cryptocurrency, dropped 18 percent in November while ether fell 43 percent in the same time period.

For bitcoin, this month’s price performance was a stark turnaround from its relatively stable October. The cryptocurrency traded near $6,400 without much volatility as global markets fell.

Michael Moro, CEO of Genesis Global Trading, said “it didn’t take much for the price to break down” after bitcoin failed to stay above the key support level of $5,850.

“It’s unclear if this is a ‘bottom’ or a brief period of consolidation before next move down, but buyers are still maintaining some cash on the sidelines in case it does go lower,” Moro said.

There was a spike in short interest in bitcoin as momentum traders piled on, he said. But still, Moro said Genesis is seeing a decent level of buy-side interest at the $4,000 level.

The CEO also pointed to a “messy” fork on the bitcoin cash network. That digital currency split into two versions: “Bitcoin ABC” or “Bitcoin SV,” short for “Satoshi’s Vision” in mid-November.

“While the split occurred on a different blockchain, there were still spill-over effects on other cryptos, including bitcoin,” Moro said.

Still, there were some bright spots for crypto bulls this month.

Digital currencies got the backing of a key figurehead on Wall Street — Jeff Sprecher, chairman of the New York Stock Exchange and CEO of its parent company ICE. Despite headlines of cryptocurrencies flopping, Sprecher said they have a future in regulated markets.

The Intercontinental Exchange is backing a version of bitcoin futures through a start-up called Bakkt that goes live in January. Nasdaq and VanEck also confirmed they are planning to launch multiple cryptocurrency products, which include bitcoin futures in the first quarter of next year.

Regulators stepped up enforcement of initial coin offerings in November.

The Securities Exchange Commission announced its first civil penalties against founders who did not register new coin offerings, adding to its crackdown aimed at abuses and outright fraud in the growing digital industry. This week, the agency settled with pro boxer Floyd Mayweather and music producer DJ Khaled, who the SEC said pumped up initial coin offerings without telling investors they were getting paid a promotional fee.


Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: kate rooney, yu chun christopher wong, getty images
Keywords: news, cnbc, companies, digital, ceo, worlds, moro, billion, value, crashes, hit, wiping, bitcoin, exchange, 37, market, 70, coin, offerings, cryptocurrencies, cryptocurrency


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Tesla sales in China plunge 70 percent in October, according to auto industry body

Tesla’s vehicle sales in China sank 70 percent last month from a year ago, the country’s passenger car association told Reuters on Tuesday, underscoring how the Sino-U.S. trade war is hurting the U.S. electric carmaker. An official from China Passenger Car Association said data from the industry body showed Tesla sold just 211 cars in the world’s largest auto market in October. The electric carmaker, which imports all the cars it sells in China, said in October that tariff hikes on auto imports


Tesla’s vehicle sales in China sank 70 percent last month from a year ago, the country’s passenger car association told Reuters on Tuesday, underscoring how the Sino-U.S. trade war is hurting the U.S. electric carmaker. An official from China Passenger Car Association said data from the industry body showed Tesla sold just 211 cars in the world’s largest auto market in October. The electric carmaker, which imports all the cars it sells in China, said in October that tariff hikes on auto imports
Tesla sales in China plunge 70 percent in October, according to auto industry body Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: thomas peter
Keywords: news, cnbc, companies, according, model, china, imports, body, industry, plunge, cars, 70, tesla, auto, tariffs, passenger, sales, vehicle, trade


Tesla sales in China plunge 70 percent in October, according to auto industry body

Tesla’s vehicle sales in China sank 70 percent last month from a year ago, the country’s passenger car association told Reuters on Tuesday, underscoring how the Sino-U.S. trade war is hurting the U.S. electric carmaker.

An official from China Passenger Car Association said data from the industry body showed Tesla sold just 211 cars in the world’s largest auto market in October.

Tesla did not respond to repeated calls and written requests for comment on Tuesday.

The electric carmaker, which imports all the cars it sells in China, said in October that tariff hikes on auto imports were hammering its sales there. In July, Beijing raised tariffs on imports of U.S. autos to 40 percent amid a worsening trade standoff with the United States.

While so-called new-energy vehicle sales have continued to climb in China, wider auto sales have slowed sharply since the middle of the year, taking the market to the brink of its first annual sales contraction in almost three decades.

Tesla, led by billionaire CEO Elon Musk, said last week it was cutting the price of its Model X and Model S cars in China in a shift in strategy to make the cars “more affordable” and absorb more of the hit from higher tariffs.


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: thomas peter
Keywords: news, cnbc, companies, according, model, china, imports, body, industry, plunge, cars, 70, tesla, auto, tariffs, passenger, sales, vehicle, trade


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Tesla shares slip after report says China sales sank 70% in October

Shares of electric car maker Tesla fell in Tuesday’s premarket following a report that its vehicle sales in China plunged 70 percent in October from a year ago. While we do not disclose regional or monthly sales numbers, these figures are off by a significant margin.” Tesla shares signaled an opening price decline of 1.7 percent. Tesla imports all of the vehicles it sells in China, highlighting how the ongoing trade dispute between the United States and China is hampering the U.S. automaker, whi


Shares of electric car maker Tesla fell in Tuesday’s premarket following a report that its vehicle sales in China plunged 70 percent in October from a year ago. While we do not disclose regional or monthly sales numbers, these figures are off by a significant margin.” Tesla shares signaled an opening price decline of 1.7 percent. Tesla imports all of the vehicles it sells in China, highlighting how the ongoing trade dispute between the United States and China is hampering the U.S. automaker, whi
Tesla shares slip after report says China sales sank 70% in October Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: thomas franck, filmmagic, hbo, getty images
Keywords: news, cnbc, companies, tesla, vehicles, vehicle, china, shares, sales, report, numbers, trade, car, ongoing, 70, sank, slip


Tesla shares slip after report says China sales sank 70% in October

Shares of electric car maker Tesla fell in Tuesday’s premarket following a report that its vehicle sales in China plunged 70 percent in October from a year ago.

An official at China’s passenger car association reportedly told Reuters that data from the industry body showed Tesla sold just 211 cars in the world’s largest auto market in October.

A Tesla spokesperson offered the following comment to CNBC:

“This is wildly inaccurate. While we do not disclose regional or monthly sales numbers, these figures are off by a significant margin.”

Tesla shares signaled an opening price decline of 1.7 percent.

Tesla imports all of the vehicles it sells in China, highlighting how the ongoing trade dispute between the United States and China is hampering the U.S. automaker, which is led by Elon Musk.

In announcing its third-quarter production numbers last month, Tesla said it was able to “significantly increase” deliveries of its Model S and Model X cars “notwithstanding the headwinds we have been facing from the ongoing trade tensions between the US and China.”

The electric vehicle company pointed out that China has put an import tariff of 40 percent on Tesla vehicles, compared with 15 percent for other vehicles imported to China. Tesla said it costs 55 percent to 60 percent more to make its vehicles than “the exact same car” made by Chinese producers.

Despite the drop in share prices, Tesla’s stock is well ahead of the broader U.S. equity market in 2018. The automaker was up more than 11 percent through Monday’s close since January versus the S&P 500’s flat performance.

—CNBC’s Michael Sheetz contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: thomas franck, filmmagic, hbo, getty images
Keywords: news, cnbc, companies, tesla, vehicles, vehicle, china, shares, sales, report, numbers, trade, car, ongoing, 70, sank, slip


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