Singapore bank expects China slowdown to hit growth in loans

The economic slowdown in China will affect Oversea-Chinese Banking Corp’s ability to grow its loans business this year, the lender’s chief executive said on Friday. OCBC, the second-largest Singaporean bank by assets, reported a 9 percent increase in customer loans in 2018. That growth rate is expected to moderate this year amid greater uncertainties in China and globally, said its CEO Samuel Tsien. Last year’s loan growth was 9 percent, we expect this year’s to slow down to low- to middle-singl


The economic slowdown in China will affect Oversea-Chinese Banking Corp’s ability to grow its loans business this year, the lender’s chief executive said on Friday. OCBC, the second-largest Singaporean bank by assets, reported a 9 percent increase in customer loans in 2018. That growth rate is expected to moderate this year amid greater uncertainties in China and globally, said its CEO Samuel Tsien. Last year’s loan growth was 9 percent, we expect this year’s to slow down to low- to middle-singl
Singapore bank expects China slowdown to hit growth in loans Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: yen nee lee, nicky loh, bloomberg, getty images
Keywords: news, cnbc, companies, china, loans, market, reported, slowdown, singapore, bank, 2018, growth, net, expects, profit, expect, hit


Singapore bank expects China slowdown to hit growth in loans

The economic slowdown in China will affect Oversea-Chinese Banking Corp’s ability to grow its loans business this year, the lender’s chief executive said on Friday.

OCBC, the second-largest Singaporean bank by assets, reported a 9 percent increase in customer loans in 2018. That growth rate is expected to moderate this year amid greater uncertainties in China and globally, said its CEO Samuel Tsien.

“Despite that there’s a slowdown, the market is still growing … We still expect that the market will offer us opportunities to continue to grow as we have done in the past,” Tsien told CNBC’s Martin Soong when asked about the impact of China’s slowdown.

“I do expect that our loan growth for this year will be lower than that we saw last year. Last year’s loan growth was 9 percent, we expect this year’s to slow down to low- to middle-single digit,” he said, after the bank reported its full-year earnings.

The Greater China region was the second-largest profit contributor for OCBC in 2018, after its home market Singapore. The region accounted for 19 percent of the bank’s overall profit before tax last year and about 25 percent of its total customer loans.

OCBC rounded up the earnings release of the three Singapore-listed banks. The lender reported an 11 percent fall in net profit last year.

In contrast, OCBC’s smaller peer United Overseas Bank announced on the same day an 18 percent increase in annual net profit, while Singapore’s largest bank DBS Group Holdings said on Monday its net profit for 2018 rose 28 percent from the previous year.

Shares of OCBC declined by close to 2 percent in Friday trading, while UOB fell by nearly 2 percent and DBS inched up close to 1 percent.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: yen nee lee, nicky loh, bloomberg, getty images
Keywords: news, cnbc, companies, china, loans, market, reported, slowdown, singapore, bank, 2018, growth, net, expects, profit, expect, hit


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Fed should be vigilant about too-low inflation, Williams says

The concern about excessively low inflation is remarkable in the context of a U.S. unemployment rate of 4 percent, well below what most economists believe is sustainable in the long run. “I concur that we must remain vigilant regarding a sustained takeoff in inflation,” Williams said, citing his own analysis that showed low unemployment does in fact still exert upward pressure on prices. But unlike the 1960s, he said, inflation dynamics have changed so that even if prices surge temporarily, that


The concern about excessively low inflation is remarkable in the context of a U.S. unemployment rate of 4 percent, well below what most economists believe is sustainable in the long run. “I concur that we must remain vigilant regarding a sustained takeoff in inflation,” Williams said, citing his own analysis that showed low unemployment does in fact still exert upward pressure on prices. But unlike the 1960s, he said, inflation dynamics have changed so that even if prices surge temporarily, that
Fed should be vigilant about too-low inflation, Williams says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: noah berger, bloomberg, getty images
Keywords: news, cnbc, companies, expectations, vigilant, inflation, low, unemployment, track, target, fed, upward, sustained, toolow, williams


Fed should be vigilant about too-low inflation, Williams says

The Federal Reserve needs to make sure that tight labor markets do not spark a sustained surge in inflation, but equally that inflation expectations do not get stuck too low, New York Federal Reserve Bank President John Williams said on Friday.

The concern about excessively low inflation is remarkable in the context of a U.S. unemployment rate of 4 percent, well below what most economists believe is sustainable in the long run. Traditionally, economists have found that when labor markets run hot, eventually inflation will as well.

That relationship may have changed, according to a spate of new research from within and outside of the Fed that some policymakers have used to justify the U.S. central bank’s new stance of “patience” on interest rates despite very low unemployment.

Williams made the remarks in response to a paper released on Friday that argued that though upward price pressures are currently muted, the Fed needs to guard against the possibility that low unemployment rates and rising wages could eventually spark higher inflation, as it did in the 1960s.

“I concur that we must remain vigilant regarding a sustained takeoff in inflation,” Williams said, citing his own analysis that showed low unemployment does in fact still exert upward pressure on prices.

But unlike the 1960s, he said, inflation dynamics have changed so that even if prices surge temporarily, that increase does not get embedded into inflation expectations, keeping inflation from rising sustainably above healthy levels.

Indeed, he said, inflation expectations are key to keeping inflation on track, and expectations are shaped in large part by experience. Inflation’s recent track record of riding well below the Fed’s 2 percent target is, therefore, concerning, he said.

“We must be equally vigilant that inflation expectations do not get anchored at too low a level,” he said. “This persistent undershoot of the Feds target risks undermining the 2 percent inflation anchor.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: noah berger, bloomberg, getty images
Keywords: news, cnbc, companies, expectations, vigilant, inflation, low, unemployment, track, target, fed, upward, sustained, toolow, williams


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Aussie dollar falls on reported coal ban from China — but analysts see limited impact

The Australian dollar tumbled from levels above $0.7200 to below $0.7100 following reports that China banned coal imports from the country at a major port. Reuters reported on Thursday that customs at the Chinese port of Dalian has banned imported Australian coal since February, and will “cap overall coal imports from all sources to the end of 2019 at 12 million tonnes.” It also said that major ports elsewhere in China prolonged clearing times for Australian coal to at least 40 days. He added th


The Australian dollar tumbled from levels above $0.7200 to below $0.7100 following reports that China banned coal imports from the country at a major port. Reuters reported on Thursday that customs at the Chinese port of Dalian has banned imported Australian coal since February, and will “cap overall coal imports from all sources to the end of 2019 at 12 million tonnes.” It also said that major ports elsewhere in China prolonged clearing times for Australian coal to at least 40 days. He added th
Aussie dollar falls on reported coal ban from China — but analysts see limited impact Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: saheli roy choudhury, carla gottgens, bloomberg, getty images, -vivek dhar, national australia bank
Keywords: news, cnbc, companies, china, analysts, falls, australian, times, reported, coal, tumbled, impact, trade, limited, ban, aussie, dollar, australia, chinese, banned


Aussie dollar falls on reported coal ban from China — but analysts see limited impact

The Australian dollar tumbled from levels above $0.7200 to below $0.7100 following reports that China banned coal imports from the country at a major port.

Reuters reported on Thursday that customs at the Chinese port of Dalian has banned imported Australian coal since February, and will “cap overall coal imports from all sources to the end of 2019 at 12 million tonnes.” It also said that major ports elsewhere in China prolonged clearing times for Australian coal to at least 40 days.

On Friday afternoon, the Australian dollar eked out slight gains to trade at $0.7101 at 2:55 p.m. HK/SIN, up from an earlier low of $0.7081. Local coal stocks mostly sold off. Shares of BHP fell 0.42 percent, Whitehaven retraced losses to gain 0.66 percent, Yancoal declined 2.8 percent and New Hope Group tumbled 3.55 percent.

Market speculation suggests Thursday’s report may be a reflection of strains in the political and trade relationship between Australia and China in recent times, Ivan Colhoun, chief economist for markets at the National Australia Bank, said in a note. He added that the reported ban would affect a relatively small portion of the country’s coal exports.

Last year, Australia banned Chinese telecommunication companies Huawei and ZTE from selling 5G technology equipment in the country, citing national security concerns. More recently, Australia rescinded the visa of a prominent Chinese businessman.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: saheli roy choudhury, carla gottgens, bloomberg, getty images, -vivek dhar, national australia bank
Keywords: news, cnbc, companies, china, analysts, falls, australian, times, reported, coal, tumbled, impact, trade, limited, ban, aussie, dollar, australia, chinese, banned


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Jefferies believes this small cap has an ‘Amazonian Business Model’

Planet Fitness, a $5.7 billion gym operator, has a business model that resembles e-commerce giant Amazon’s, according to one Wall Street analyst. So says Jefferies’ Randal Konik, who upgraded the stock to buy from hold on Friday and raised the 12-month price target to $75 from $49 previously. The target would translate into a 28 percent gain for Planet Fitness based on Friday’s trading level. “This is a platform, not a gym,” Konik said in a note to clients. “We believe Planet Fitness is a platfo


Planet Fitness, a $5.7 billion gym operator, has a business model that resembles e-commerce giant Amazon’s, according to one Wall Street analyst. So says Jefferies’ Randal Konik, who upgraded the stock to buy from hold on Friday and raised the 12-month price target to $75 from $49 previously. The target would translate into a 28 percent gain for Planet Fitness based on Friday’s trading level. “This is a platform, not a gym,” Konik said in a note to clients. “We believe Planet Fitness is a platfo
Jefferies believes this small cap has an ‘Amazonian Business Model’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: yun li, drew angerer, getty images, david paul morris, bloomberg, patrick t fallon, tom strickland, scott mlyn, chip chipman, victor j blue
Keywords: news, cnbc, companies, amazonian, upgraded, cap, konik, amazons, planet, gym, model, believes, target, small, business, platform, wall, fitness, jefferies


Jefferies believes this small cap has an 'Amazonian Business Model'

Planet Fitness, a $5.7 billion gym operator, has a business model that resembles e-commerce giant Amazon’s, according to one Wall Street analyst.

So says Jefferies’ Randal Konik, who upgraded the stock to buy from hold on Friday and raised the 12-month price target to $75 from $49 previously. The target would translate into a 28 percent gain for Planet Fitness based on Friday’s trading level.

“This is a platform, not a gym,” Konik said in a note to clients.”We believe Planet Fitness is a platform for consumer aggregation with tenets that resemble Amazon’s successful model.”


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: yun li, drew angerer, getty images, david paul morris, bloomberg, patrick t fallon, tom strickland, scott mlyn, chip chipman, victor j blue
Keywords: news, cnbc, companies, amazonian, upgraded, cap, konik, amazons, planet, gym, model, believes, target, small, business, platform, wall, fitness, jefferies


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Malaysia’s consumer prices fall for the first time since 2009

Malaysia’s consumer prices fell for the first time in nearly a decade in January, on the back of lower fuel costs, but economists say deflation is unlikely to be sustained and would not lead to any change in monetary policy. The consumer price index fell 0.7 percent in January from a year earlier, the first decline since November 2009 when it fell 0.1 percent. The transport sector index fell 7.8 percent from a year earlier in January, data from the Statistics Department showed. The decline, howe


Malaysia’s consumer prices fell for the first time in nearly a decade in January, on the back of lower fuel costs, but economists say deflation is unlikely to be sustained and would not lead to any change in monetary policy. The consumer price index fell 0.7 percent in January from a year earlier, the first decline since November 2009 when it fell 0.1 percent. The transport sector index fell 7.8 percent from a year earlier in January, data from the Statistics Department showed. The decline, howe
Malaysia’s consumer prices fall for the first time since 2009 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: goh seng chong, bloomberg, getty images
Keywords: news, cnbc, companies, 2009, inflation, unlikely, prices, fall, malaysias, bank, fell, malaysia, tax, consumer, decline, index, monetary


Malaysia's consumer prices fall for the first time since 2009

Malaysia’s consumer prices fell for the first time in nearly a decade in January, on the back of lower fuel costs, but economists say deflation is unlikely to be sustained and would not lead to any change in monetary policy.

The consumer price index fell 0.7 percent in January from a year earlier, the first decline since November 2009 when it fell 0.1 percent. A Reuters poll had forecast a drop of 0.2 percent.

Price pressures have moderated since the government withdrew an unpopular consumption tax in June 2018 and reinstated a narrower sales and services tax (SST) three months later.

Annual inflation in November and December was 0.2 percent, matching the rate in August when it hit a three-and-a-half-year low.

But the country’s central bank is not expected to cut rates as inflation was likely to pick up in the second quarter of the year, economists said.

January’s decline in the CPI index was driven mostly by a sharp drop in retail fuel prices, after a Malaysian government decision to switch to a weekly managed float mechanism and as global oil prices fell during the month.

“This is probably just temporary and once the base effects subside, we should expect prices to revert back upwards,” said Julia Goh, economist at UOB in Kuala Lumpur.

The transport sector index fell 7.8 percent from a year earlier in January, data from the Statistics Department showed.

The decline, however, was offset by higher prices of food, restaurants and hotels, and education.

The central bank has said Malaysia does not face serious deflationary pressures.

Headline inflation, which came in at 1 percent in 2018, was likely to average higher this year, Bank Negara Malaysia said last week.

“If external conditions deteriorate further, then there is room for monetary easing but that is unlikely to happen this year,” said Irvin Seah, senior economist at DBS in Singapore.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: goh seng chong, bloomberg, getty images
Keywords: news, cnbc, companies, 2009, inflation, unlikely, prices, fall, malaysias, bank, fell, malaysia, tax, consumer, decline, index, monetary


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Stamps.com threw USPS under the bus and cratered 50% because it’s betting big on Amazon shipping

Stamps.com threw USPS under the bus, dissolving the companies’ longtime partnership, because it’s betting big on Amazon’s success in shipping and logistics. So their threat should be taken very seriously by every player in the shipping industry,” CEO Ken McBride said on the company’s earnings call Thursday. The e-retailer faces a tall task in disrupting the traditionally walled garden that is the U.S. shipping industry. “What they’ve done is they’ve built their network from scratch, and they’ve


Stamps.com threw USPS under the bus, dissolving the companies’ longtime partnership, because it’s betting big on Amazon’s success in shipping and logistics. So their threat should be taken very seriously by every player in the shipping industry,” CEO Ken McBride said on the company’s earnings call Thursday. The e-retailer faces a tall task in disrupting the traditionally walled garden that is the U.S. shipping industry. “What they’ve done is they’ve built their network from scratch, and they’ve
Stamps.com threw USPS under the bus and cratered 50% because it’s betting big on Amazon shipping Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: sara salinas, mike kane, bloomberg, getty images, peter macdiarmid
Keywords: news, cnbc, companies, postal, betting, requirement, bus, industry, shipping, threw, cratered, built, stampscom, usps, ecommerce, theyve, 50, amazon, big


Stamps.com threw USPS under the bus and cratered 50% because it's betting big on Amazon shipping

Stamps.com threw USPS under the bus, dissolving the companies’ longtime partnership, because it’s betting big on Amazon’s success in shipping and logistics.

The company revealed Thursday it revoked the exclusivity stipulation of its deal with USPS, ultimately spurring the complete termination of its partnership. And it championed Amazon’s foray into the shipping space, as reported in an SEC filing earlier this month.

“Amazon’s track record of disrupting an industry is well-established. So their threat should be taken very seriously by every player in the shipping industry,” CEO Ken McBride said on the company’s earnings call Thursday. “We are setting our corporate strategy assuming Amazon will be a big global player in shipping.”

It’s a big bet on Amazon, and has so far dented Stamps.com stock. Shares plummeted more than 50 percent in extended trading and opened Friday more than $100 off the stock’s Thursday closing price of $198.08 per share.

The move is a boon for Amazon. The e-retailer faces a tall task in disrupting the traditionally walled garden that is the U.S. shipping industry. A major partner of a government-run incumbent jumping ship suggests Amazon could make necessary inroads.

“Amazon is the powerhouse, the gorilla in e-commerce. And so we need to work with Amazon and really everybody needs to work with Amazon,” McBride said. “What they’ve done is they’ve built their network from scratch, and they’ve built it in the last few years, and they’ve built it with e-commerce in mind. And a lot of the other carriers have networks that are much older.”

Amazon has built a system centered around e-commerce and agile delivery, McBride said. In guaranteeing two-day shipping, Amazon has set a standard that traditional shippers now have to match. USPS, he said, isn’t capable of doing so:

While USPS is officially an independent organization that is supported by its own revenue from mail and packages, it has many rules and regulations and governmental requirements that do not allow its flexibility to react to business trends as rapidly as it needs to do in order to keep up with the rapid pace of change in e-commerce. The USPS continues to report significant financial losses, including a loss of $1.5 billion in a most recently reported quarter. The USPS is hamstrung by the very large financial burden placed on them from the unreasonable requirement implemented in the 2006 Postal Accountability and Enhancement Act that they pre-fund – the requirement is that they pre-fund retiree health benefits to the tune of more than $5.5 billion each year. The USPS also has a significant financial burden in its requirement to support over 600,000 postal retirees that receive health and pension benefits. The USPS has oversight by Congress, oversight by the Postal Regulatory Commission and by its own Board of Governors and all of these organizations have approval rights on various aspects of everything the USPS does. One of the critical aspects in today’s very dynamic e-commerce industry is how quickly new products can come to market and how quickly an organization can make adjustments. All of these oversight bodies slow that process down for the USPS dramatically.

WATCH: Amazon is so much more than online shopping — here’s how big its become


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: sara salinas, mike kane, bloomberg, getty images, peter macdiarmid
Keywords: news, cnbc, companies, postal, betting, requirement, bus, industry, shipping, threw, cratered, built, stampscom, usps, ecommerce, theyve, 50, amazon, big


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Singapore lender OCBC’s quarterly profit falls 10 percent, misses estimates

Oversea-Chinese Banking Corp warned of slower economic growth after Singapore’s second-biggest listed lender missed market estimates with a 10 percent drop in quarterly profit, due to a weak performance in its insurance business. Singapore banks are gearing up for tougher times after three years of strong loans growth as the city-state’s export-reliant economy slows, partly due to a trade war between China and the United States. OCBC’s October-December net profit came in at S$926 million ($684 m


Oversea-Chinese Banking Corp warned of slower economic growth after Singapore’s second-biggest listed lender missed market estimates with a 10 percent drop in quarterly profit, due to a weak performance in its insurance business. Singapore banks are gearing up for tougher times after three years of strong loans growth as the city-state’s export-reliant economy slows, partly due to a trade war between China and the United States. OCBC’s October-December net profit came in at S$926 million ($684 m
Singapore lender OCBC’s quarterly profit falls 10 percent, misses estimates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: ore huiying, bloomberg, getty images
Keywords: news, cnbc, companies, falls, market, united, ocbcs, singapore, estimates, million, listed, growth, lender, trade, profit, quarterly, economic, misses


Singapore lender OCBC's quarterly profit falls 10 percent, misses estimates

Oversea-Chinese Banking Corp warned of slower economic growth after Singapore’s second-biggest listed lender missed market estimates with a 10 percent drop in quarterly profit, due to a weak performance in its insurance business.

Singapore banks are gearing up for tougher times after three years of strong loans growth as the city-state’s export-reliant economy slows, partly due to a trade war between China and the United States.

“Looking ahead, global economic growth is expected to slow on concerns of continued trade and geopolitical tensions, subdued market and investment sentiments and rising policy risks in the advanced economies,” OCBC CEO Samuel Tsien said in a statement on Friday.

OCBC’s October-December net profit came in at S$926 million ($684 million), versus S$1.03 billion a year earlier and compared with the S$1.17 billion average estimate of four analysts, according to data from Refinitiv.

The results came days after top lender DBS Group Holdings posted an 8 percent rise in quarterly profit, in line with market expectations.

On Friday, United Overseas Bank, the smallest listed lender in the city-state, reported a 7 percent increase in quarterly profit to S$916 million.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: ore huiying, bloomberg, getty images
Keywords: news, cnbc, companies, falls, market, united, ocbcs, singapore, estimates, million, listed, growth, lender, trade, profit, quarterly, economic, misses


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Intel shares jump after Morgan Stanley upgrades the stock and predicts a big rally

Investors should buy Intel shares as they could get a boost from CEO Bob Swan’s leadership, a Morgan Stanley analyst said Friday. Analyst Joseph Moore upgraded Intel to overweight from equal weight and hiked his price target on the stock to $64 per share from $55. “We think that Intel can rerate higher around a more financially oriented CEO,” Moore said in a note to clients. Intel shares are up 9.55 percent this year through Thursday’s close but are lagging competitors like Nvidia and Advanced M


Investors should buy Intel shares as they could get a boost from CEO Bob Swan’s leadership, a Morgan Stanley analyst said Friday. Analyst Joseph Moore upgraded Intel to overweight from equal weight and hiked his price target on the stock to $64 per share from $55. “We think that Intel can rerate higher around a more financially oriented CEO,” Moore said in a note to clients. Intel shares are up 9.55 percent this year through Thursday’s close but are lagging competitors like Nvidia and Advanced M
Intel shares jump after Morgan Stanley upgrades the stock and predicts a big rally Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: fred imbert, samyukta lakshmi, bloomberg, getty images
Keywords: news, cnbc, companies, think, thursdays, predicts, ceo, rally, higher, upgrades, shares, target, stock, intels, jump, morgan, technology, moore, intel, stanley, big


Intel shares jump after Morgan Stanley upgrades the stock and predicts a big rally

Investors should buy Intel shares as they could get a boost from CEO Bob Swan’s leadership, a Morgan Stanley analyst said Friday.

Analyst Joseph Moore upgraded Intel to overweight from equal weight and hiked his price target on the stock to $64 per share from $55. Moore’s new price target represents 24 percent upside from Thursday’s close of $51.41 per share. Intel traded about 3 percent higher in the premarket Friday.

“We think that Intel can rerate higher around a more financially oriented CEO,” Moore said in a note to clients. “While some investors wanted someone with more of a technology background, we think that one of Intel’s biggest challenges in recent years has been its tendency to become enamored with technology over economics.”

Swan was Intel’s interim CEO for seven months after Brian Krzanich was ousted last year for having a “consensual relationship” with an employee. Prior to that, Swan had been Intel’s CFO since 2016.

Intel shares are up 9.55 percent this year through Thursday’s close but are lagging competitors like Nvidia and Advanced Micro Devices. Nvidia’s stock is up more than 16 percent in 2019 while AMD has surged nearly 30 percent.

“With a better portfolio optimization process, framing those technology issues around business risk/reward, a mindset of optimizing free cash flow more than earnings, and a higher standard of M&A accretion, we see the multiple expanding from 12x to 14x in our base case,” Moore said. “While we are cautious on semiconductors, and Intel is not immune, these idiosyncratic opportunities set them apart.”

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Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: fred imbert, samyukta lakshmi, bloomberg, getty images
Keywords: news, cnbc, companies, think, thursdays, predicts, ceo, rally, higher, upgrades, shares, target, stock, intels, jump, morgan, technology, moore, intel, stanley, big


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FANG stocks aren’t the growth names they used to be, strategist says

S&P Global’s Erin Gibbs believes this group might be out of favor for some time. “We really see this as a rotation out of these mega-cap growth stocks into a wider distribution broader market, as well as value,” she said Thursday on CNBC’s “Trading Nation.” She notes that the expected growth rate of 8 percent for Alphabet and Amazon means they are “no longer growth names” but “still super pricey.” Overall, Gibbs believes “the decline in a lot of these stocks is people just adjusting to the fact


S&P Global’s Erin Gibbs believes this group might be out of favor for some time. “We really see this as a rotation out of these mega-cap growth stocks into a wider distribution broader market, as well as value,” she said Thursday on CNBC’s “Trading Nation.” She notes that the expected growth rate of 8 percent for Alphabet and Amazon means they are “no longer growth names” but “still super pricey.” Overall, Gibbs believes “the decline in a lot of these stocks is people just adjusting to the fact
FANG stocks aren’t the growth names they used to be, strategist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: pippa stevens, simon dawson, bloomberg, getty images, daniel hernanz ramos, moment, justin sullivan, tasos katopodis, source, apex legends
Keywords: news, cnbc, companies, strategist, names, stocks, believes, arent, netflix, growth, fang, gibbs, used, alphabet, amazon, market


FANG stocks aren't the growth names they used to be, strategist says

New year, different FANG.

After leading the market for much of 2018, tech high-flyers Facebook, Amazon, Netflix and Google parent Alphabet were hit hard in the fourth quarter, and apart from Netflix have lagged the S&P 500 this month.

While these four stocks have bounced meaningfully from their December lows, they are still a good distance from their all-time highs. Facebook and Amazon are in bear markets (off at least 20 percent from their recent highs), while Netflix and Alphabet are trading in correction territory (down at least 10 percent).

S&P Global’s Erin Gibbs believes this group might be out of favor for some time.

“We really see this as a rotation out of these mega-cap growth stocks into a wider distribution broader market, as well as value,” she said Thursday on CNBC’s “Trading Nation.” She notes that the expected growth rate of 8 percent for Alphabet and Amazon means they are “no longer growth names” but “still super pricey.” Given that, she said, “these are the kinds of stocks that might actually underperform for the rest of the year.”

One notable exception is Netflix, which she continues to “love” given its 50 percent-plus earnings per share growth expectations for the next three years. She also notes that the valuation, while still high at 90 times forward earnings, has “really come down below its three-year average, so it’s not overpriced when you’re looking at the type of growth.”

While Netflix is still in correction, shares have skyrocketed more than 50 percent from their December low, and the company has outpaced fellow FANGs as well as the broader market this year, clocking a gain of more than 33 percent.

Overall, Gibbs believes “the decline in a lot of these stocks is people just adjusting to the fact that they’re no longer such high flyers.”

Miller Tabak’s Matt Maley wouldn’t be a buyer of any of these stocks here, although he believes Alphabet looks the best from a technical perspective. He noted that the stock has broken back above its six-month trend line, and that even when it was falling, it still managed to hold the key $1,000 level.

Like Gibbs, Maley believes the overall weakness in the tech space is a case of investors having been “loaded to the gills in these FANG names” and using recent weakness to rebalance their portfolios.

Maley foresees gains for FANG but says the high-flying days of yore may be gone for good.

“I think the [FANG names] will do fine, but I think they’ll only do as well as the rest of the market, because as money is coming out of the FANGs it’s being redistributed into other names like the semiconductor stocks,” he said.

Disclosure: S&P Global holds shares of Netflix and Alphabet in its advised portfolios.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: pippa stevens, simon dawson, bloomberg, getty images, daniel hernanz ramos, moment, justin sullivan, tasos katopodis, source, apex legends
Keywords: news, cnbc, companies, strategist, names, stocks, believes, arent, netflix, growth, fang, gibbs, used, alphabet, amazon, market


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Societe General plans to cut thousands of jobs at investment bank: Bloomberg

French bank Societe General is planning to cut thousands of jobs at its global banking and investor solutions unit, as it looks to offset cost pressure from regulation, Bloomberg reported on Friday, citing people familiar with the matter. The bank is also looking to find a partner for its cash-equity business, the report added. Societe Generale did not immediately respond to a Reuters request for comment.


French bank Societe General is planning to cut thousands of jobs at its global banking and investor solutions unit, as it looks to offset cost pressure from regulation, Bloomberg reported on Friday, citing people familiar with the matter. The bank is also looking to find a partner for its cash-equity business, the report added. Societe Generale did not immediately respond to a Reuters request for comment.
Societe General plans to cut thousands of jobs at investment bank: Bloomberg Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: antoine antoniol, bloomberg, getty images
Keywords: news, cnbc, companies, bloomberg, regulation, request, reported, societe, general, thousands, bank, solutions, jobs, unit, cut, report, investment, respond, plans


Societe General plans to cut thousands of jobs at investment bank: Bloomberg

French bank Societe General is planning to cut thousands of jobs at its global banking and investor solutions unit, as it looks to offset cost pressure from regulation, Bloomberg reported on Friday, citing people familiar with the matter.

The bank is also looking to find a partner for its cash-equity business, the report added.

Societe Generale did not immediately respond to a Reuters request for comment.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: antoine antoniol, bloomberg, getty images
Keywords: news, cnbc, companies, bloomberg, regulation, request, reported, societe, general, thousands, bank, solutions, jobs, unit, cut, report, investment, respond, plans


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