Goldman Sachs predicts no recession in 2019 but sees a ‘pretty sharp slowdown’

Goldman Sachs does not foresee any recessions in major economies in 2019 but low profit growth is on the cards in the U.S. and Europe, its chief global equity strategist told CNBC Tuesday. “It’s still our view that we’re not headed for recession in any of the major economies,” Goldman’s Peter Oppenheimer told CNBC’s Annette Weisbach at the Goldman Sachs Global Strategy Conference in Frankfurt. The growth outlook for 2019 is also beset with trade concerns, a slowdown in China, Brexit and politica


Goldman Sachs does not foresee any recessions in major economies in 2019 but low profit growth is on the cards in the U.S. and Europe, its chief global equity strategist told CNBC Tuesday. “It’s still our view that we’re not headed for recession in any of the major economies,” Goldman’s Peter Oppenheimer told CNBC’s Annette Weisbach at the Goldman Sachs Global Strategy Conference in Frankfurt. The growth outlook for 2019 is also beset with trade concerns, a slowdown in China, Brexit and politica
Goldman Sachs predicts no recession in 2019 but sees a ‘pretty sharp slowdown’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: holly ellyatt, bryan r smith, afp, getty images
Keywords: news, cnbc, companies, sharp, tensions, global, sachs, goldman, recession, pretty, 2019, growth, told, market, slowdown, predicts, sees, trade


Goldman Sachs predicts no recession in 2019 but sees a 'pretty sharp slowdown'

Goldman Sachs does not foresee any recessions in major economies in 2019 but low profit growth is on the cards in the U.S. and Europe, its chief global equity strategist told CNBC Tuesday.

“It’s still our view that we’re not headed for recession in any of the major economies,” Goldman’s Peter Oppenheimer told CNBC’s Annette Weisbach at the Goldman Sachs Global Strategy Conference in Frankfurt.

“At the end of last year, there was a particularly sharp downgrade in expectations for the U.S. and while there has been a big tightening of policy and financial conditions in the U.S. … We don’t see a recession, but we do see a pretty sharp slowdown,” he said, adding that markets had “got too far into pricing a deeper downturn than we expect.”

Oppenheimer’s comments come after general pessimism among market participants in the U.S. over where the market is heading amid rising interest rates from the U.S. Federal Reserve and geopolitical tensions, especially between the U.S. and China.

A survey of 500 U.S. institutional investors by Natixis in December showed that the majority felt that the longest bull market in history will come to an end in 2019. Forty-one percent of those surveyed said they would be reducing allocations to U.S. equities.

The growth outlook for 2019 is also beset with trade concerns, a slowdown in China, Brexit and political uncertainty in Europe making forecasts for the global economy tricky.

The International Monetary Fund (IMF) cited trade tensions when it downgraded its global growth forecast for 2019 last October. The IMF expects global growth of 3.7 percent in 2019, down 0.2 percentage points from an earlier forecast in its bi-annual World Economic Outlook report.


Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: holly ellyatt, bryan r smith, afp, getty images
Keywords: news, cnbc, companies, sharp, tensions, global, sachs, goldman, recession, pretty, 2019, growth, told, market, slowdown, predicts, sees, trade


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US Secretary of State Mike Pompeo will reportedly hold talks with North Korea this week

U.S. Secretary of State Mike Pompeo is about to hold high-level talks in Washington D.C. with North Korean senior official Kim Yong Chol on Thursday or Friday, and both sides are fine-tuning details, a South Korean newspaper said. The North Korean official is likely to meet President Donald Trump as well, the Chosun Ilbo said on Tuesday, citing an unnamed diplomatic source familiar with the talks between the United States and North Korea. Asked about the South Korean newspaper report, a State De


U.S. Secretary of State Mike Pompeo is about to hold high-level talks in Washington D.C. with North Korean senior official Kim Yong Chol on Thursday or Friday, and both sides are fine-tuning details, a South Korean newspaper said. The North Korean official is likely to meet President Donald Trump as well, the Chosun Ilbo said on Tuesday, citing an unnamed diplomatic source familiar with the talks between the United States and North Korea. Asked about the South Korean newspaper report, a State De
US Secretary of State Mike Pompeo will reportedly hold talks with North Korea this week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: bryan r smith, afp, getty images
Keywords: news, cnbc, companies, korean, yong, talks, united, week, secretary, north, states, trump, reportedly, korea, kim, pompeo, mike, official, south, state, hold


US Secretary of State Mike Pompeo will reportedly hold talks with North Korea this week

U.S. Secretary of State Mike Pompeo is about to hold high-level talks in Washington D.C. with North Korean senior official Kim Yong Chol on Thursday or Friday, and both sides are fine-tuning details, a South Korean newspaper said.

The North Korean official is likely to meet President Donald Trump as well, the Chosun Ilbo said on Tuesday, citing an unnamed diplomatic source familiar with the talks between the United States and North Korea.

Asked about the South Korean newspaper report, a State Department official said, “We don’t have any meetings to announce.” The White House did not immediately respond to a request for comment.

The United States is considering partially easing sanctions on North Korea in exchange for the isolated nation discarding, or sending abroad, its intercontinental ballistic missiles, in addition to the adoption of a “nuclear freeze,” the U.S. talks with the South Korean government have shown, the Chosun Ilbo said, citing the source.

“If North Korea accepts, it’s a realizable scenario,” it quoted the source as saying.

South Korea’s presidential office directed questions to the foreign ministry, which did not have immediate comment.

This month, Trump said he had received a “great” letter from North Korean leader Kim Jong Un and would probably meet him again in the not-too-distant future, as part of efforts to persuade him to give up his nuclear weapons.

Pompeo made several trips to Pyongyang last year, but the two sides have not rescheduled an abruptly canceled November meeting between him and Kim Yong Chol that aimed at paving the way for a second summit.


Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: bryan r smith, afp, getty images
Keywords: news, cnbc, companies, korean, yong, talks, united, week, secretary, north, states, trump, reportedly, korea, kim, pompeo, mike, official, south, state, hold


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Futures point to gains as the Dow attempts to rebound from its worst week in a decade

U.S. stock futures pointed to a slightly higher open on Monday as the market attempted to rebound from a brutal week that pushed the S&P 500 to the brink of a bear market. Dow Jones Industrial Average futures rose 144 points, implying an opening gain for the Dow of 115 points, as of 2:30 a.m. S&P 500 futures and Nasdaq 100 futures also pointed to gains at the open. The Dow lost 1,655 points, or 6.8 percent, last week for its worst week since October 2008 during the financial crisis. Both the Dow


U.S. stock futures pointed to a slightly higher open on Monday as the market attempted to rebound from a brutal week that pushed the S&P 500 to the brink of a bear market. Dow Jones Industrial Average futures rose 144 points, implying an opening gain for the Dow of 115 points, as of 2:30 a.m. S&P 500 futures and Nasdaq 100 futures also pointed to gains at the open. The Dow lost 1,655 points, or 6.8 percent, last week for its worst week since October 2008 during the financial crisis. Both the Dow
Futures point to gains as the Dow attempts to rebound from its worst week in a decade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-24  Authors: john melloy, bryan r smith
Keywords: news, cnbc, companies, market, decade, rebound, sp, futures, powell, week, worst, points, 500, financial, attempts, gains, dow, mnuchin, point


Futures point to gains as the Dow attempts to rebound from its worst week in a decade

U.S. stock futures pointed to a slightly higher open on Monday as the market attempted to rebound from a brutal week that pushed the S&P 500 to the brink of a bear market.

Dow Jones Industrial Average futures rose 144 points, implying an opening gain for the Dow of 115 points, as of 2:30 a.m. ET Monday. They had earlier fallen shortly after the open of trading. S&P 500 futures and Nasdaq 100 futures also pointed to gains at the open.

The Dow lost 1,655 points, or 6.8 percent, last week for its worst week since October 2008 during the financial crisis. The S&P 500 lost 7 percent for the week and is now down 17.8 percent from its record reached earlier in the year, putting it on the brink of a bear market. The Nasdaq Composite Index is now 22 percent below its record reached in August, a bear market.

Last Wednesday, the Federal Reserve raised its benchmark interest rate for a fourth time this year and Chairman Jerome Powell signaled the central bank would continue to unwind its balance sheet at the current pace. The two monetary tightening actions are driving the stock market declines, traders say.

Treasury Secretary Steven Mnuchin held calls on Sunday with the heads of the six largest U.S. banks in order to reassure nervous investors that the financial markets and economy were functioning properly.

“The banks all confirmed ample liquidity is available for lending to consumer and business markets,” the statement from the Treasury said.

“We continue to see strong economic growth in the U.S. economy with robust activity from consumers and business,” said Mnuchin added in the statement.

Late Friday, there was a report that President Donald Trump was discussing the possibility of firing Powell, a move that could undermine confidence in the U.S. financial system. Other media outlets later confirmed those reports, but Mnuchin sought to calm the fears that arose from those reports this weekend.

Mnuchin tweeted that he spoke with the president and Trump said he never suggest firing Powell and doesn’t believe he has the right to do so.

Also weighing on investor confidence is a government shutdown that will apparently drag on through at least Thursday.

Both the Dow and the S&P 500 are now in the red for 2018 by at least 9 percent. Some traders have suggested that the market has gotten to the point where a short-term bounce could occur, if only for technical reasons. Seasonally, this is usually a positive, or at least benign, time for the markets.

The NYSE closes early on Monday at 1 p.m. ET. The exchange is closed on Tuesday for Christmas day. Wednesday through Friday are normal trading days.

This is a developing story. Check back for updates.


Company: cnbc, Activity: cnbc, Date: 2018-12-24  Authors: john melloy, bryan r smith
Keywords: news, cnbc, companies, market, decade, rebound, sp, futures, powell, week, worst, points, 500, financial, attempts, gains, dow, mnuchin, point


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Market panic enters late stages, Jim Paulsen says

Markets deep in panic cycle, so it’s time to start getting bullish, Jim Paulsen says 6 Hours Ago | 02:10December’s ugly stock market could help launch a 2019 rally to remember, according to Jim Paulsen. The Leuthold Group chief investment strategist believes Wall Street panic is in its later stages. “You’re hearing a lot of calls for recession, you’re hearing a lot more people calling this a bear market,” he said Friday on CNBC’s “Trading Nation.” “We’re getting close to the bottom,” Paulsen sai


Markets deep in panic cycle, so it’s time to start getting bullish, Jim Paulsen says 6 Hours Ago | 02:10December’s ugly stock market could help launch a 2019 rally to remember, according to Jim Paulsen. The Leuthold Group chief investment strategist believes Wall Street panic is in its later stages. “You’re hearing a lot of calls for recession, you’re hearing a lot more people calling this a bear market,” he said Friday on CNBC’s “Trading Nation.” “We’re getting close to the bottom,” Paulsen sai
Market panic enters late stages, Jim Paulsen says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-24  Authors: stephanie landsman, brendan mcdermid, scott mlyn, bryan r smith, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, stages, lot, close, sp, rates, rally, jim, late, getting, enters, market, paulsen, panic, sentiment


Market panic enters late stages, Jim Paulsen says

Markets deep in panic cycle, so it’s time to start getting bullish, Jim Paulsen says 6 Hours Ago | 02:10

December’s ugly stock market could help launch a 2019 rally to remember, according to Jim Paulsen.

The Leuthold Group chief investment strategist believes Wall Street panic is in its later stages.

“You’re hearing a lot of calls for recession, you’re hearing a lot more people calling this a bear market,” he said Friday on CNBC’s “Trading Nation.” “We’ve done a lot of damage here with sentiment.”

Damage, indeed.

The S&P 500 is coming off its worst week since 2011. The index is off about 18 percent since its all-time high of 2,940, hit on Sept. 21.

The Dow is also getting pummeled, down almost 17 percent from its record high. It saw its lowest close on Friday since August 2017.

“We’re getting close to the bottom,” Paulsen said, adding that it appears negative sentiment is “getting close to burning out.”

Jitters over the trade war with China, slowing economic and earnings growth and the Federal Reserve’s policy on interest rates have been largely driving this year’s downturn.

However, that could soon change.

“I think economic reports are going to go soft coming up. But if they do, that might be a catalyst that convinces the Fed and bond vigilantes and investors, in general, that the rates are no longer going up,” he said. “The Fed may even ease, and maybe we have a 2019 year where the market can advance without rate increases.”

According to Paulsen, that could help wipe out negative sentiment and spark a rally that will bring the S&P 500 back to its all-time highs in the first half of 2019.

WATCH: Don’t panic when stocks are getting slammed


Company: cnbc, Activity: cnbc, Date: 2018-12-24  Authors: stephanie landsman, brendan mcdermid, scott mlyn, bryan r smith, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, stages, lot, close, sp, rates, rally, jim, late, getting, enters, market, paulsen, panic, sentiment


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Cramer is ‘spot on’ about buying gold, and may rally 10%: Analyst

Market uncertainties such as trade tensions and other geopolitical worries tend to increase demand for safe-haven assets, gold being one of them. As trade war tensions have peaked over the last three months, gold prices have risen 6 percent. On the GLD gold index, a 10 percent rally would take the exchange-traded fund (ETF) to new 52-week highs. The U.S. dollar and gold prices typically have an inverse relationship, in which one falls as the other rises. However, not every market watcher is as e


Market uncertainties such as trade tensions and other geopolitical worries tend to increase demand for safe-haven assets, gold being one of them. As trade war tensions have peaked over the last three months, gold prices have risen 6 percent. On the GLD gold index, a 10 percent rally would take the exchange-traded fund (ETF) to new 52-week highs. The U.S. dollar and gold prices typically have an inverse relationship, in which one falls as the other rises. However, not every market watcher is as e
Cramer is ‘spot on’ about buying gold, and may rally 10%: Analyst Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-22  Authors: keris lahiff, scott mlyn, bryan r smith, brendan mcdermid, brad quick, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, tensions, rally, market, trading, spot, cramer, really, analyst, trade, prices, gold, buying, higher, safehaven


Cramer is 'spot on' about buying gold, and may rally 10%: Analyst

Gold is getting its shine back.

The traditional safe-haven asset has rallied more than 3 percent this month, as investors sought shelter from a volatile stock market. The surge has even prompted praise from Mad Money’s Jim Cramer for gold’s “bull market.”

Market uncertainties such as trade tensions and other geopolitical worries tend to increase demand for safe-haven assets, gold being one of them. As trade war tensions have peaked over the last three months, gold prices have risen 6 percent.

And the rally could be just getting started, according to Craig Johnson, chief market technician at Piper Jaffray.

“Cramer’s spot on correct,” Johnson said on CNBC’s “Trading Nation” on Friday. “It looks like we’re putting in a bottom here and it looks like we’re going to see this maybe 9 to 10 percent higher to get back to the old highs.”

On the GLD gold index, a 10 percent rally would take the exchange-traded fund (ETF) to new 52-week highs. It would also mark its highest level since August 2016.

“From our perspective I think we could see some weakness in the dollar in here given that the [Federal Reserve] might be less hawkish going forward, and that might be really the underlying driver higher as to why we’ll see the gold prices go higher,” said Johnson.

The U.S. dollar and gold prices typically have an inverse relationship, in which one falls as the other rises. Bullion tends to get a bid when the greenback falls, as it becomes a cheaper commodity to investors trading in other currencies.

However, not every market watcher is as enthusiastic about the gold trade. Erin Gibbs, portfolio manager at S&P Global Market Intelligence, said the gold rush may be fading.

“I don’t see it ending just yet, perhaps not before the end of the year but certainly as we get into 2019,” Gibbs said on “Trading Nation” on Friday. “A lot of the concerns that we have – tariffs, Brexit and so on – as those dissipate and we really start looking at the fundamentals again, this could very swiftly be undone.”


Company: cnbc, Activity: cnbc, Date: 2018-12-22  Authors: keris lahiff, scott mlyn, bryan r smith, brendan mcdermid, brad quick, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, tensions, rally, market, trading, spot, cramer, really, analyst, trade, prices, gold, buying, higher, safehaven


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Amazon is tracking for its worst quarter since 2008 and now faces a key technical test

The stock, one-fourth of the FANG trade, has tanked 23 percent since the beginning of October, tracking for its worst quarter since the fourth quarter of 2008. There could be more downside ahead for the stock, said Ari Wald, head of technical analysis at Oppenheimer. “We still think this stock works for the long term. Bullish long term, near term let it stabilize for longer.” “We have to separate Amazon the company from Amazon the stock,” Schlossberg said Monday on “Trading Nation.”


The stock, one-fourth of the FANG trade, has tanked 23 percent since the beginning of October, tracking for its worst quarter since the fourth quarter of 2008. There could be more downside ahead for the stock, said Ari Wald, head of technical analysis at Oppenheimer. “We still think this stock works for the long term. Bullish long term, near term let it stabilize for longer.” “We have to separate Amazon the company from Amazon the stock,” Schlossberg said Monday on “Trading Nation.”
Amazon is tracking for its worst quarter since 2008 and now faces a key technical test Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: keris lahiff, source, bryan r smith, kcna, thomas barwick getty images, lawrence mcdonald
Keywords: news, cnbc, companies, stock, think, simply, faces, key, worst, stabilize, term, wald, tumbled, trading, quarter, test, tracking, technical, 2008, long, amazon


Amazon is tracking for its worst quarter since 2008 and now faces a key technical test

Amazon fine for long-term, needs time to stabilize: Analyst 2:48 PM ET Mon, 17 Dec 2018 | 03:23

Amazon has not seen these kinds of losses in a decade.

The stock, one-fourth of the FANG trade, has tanked 23 percent since the beginning of October, tracking for its worst quarter since the fourth quarter of 2008.

There could be more downside ahead for the stock, said Ari Wald, head of technical analysis at Oppenheimer.

“The stock needs additional time to stabilize but we think it is fine for the long term and probably one of the better-looking retail charts with the rest of that group really breaking down,” Wald said Monday on CNBC’s “Trading Nation.”

The XRT retail ETF, which holds Amazon, has tumbled 8 percent so far this year. Meanwhile, Amazon remains 33 percent higher since January.

“What’s important to note here is that while the S&P 500 is breaking below its October low, Amazon is still above it, trying to make this higher low. That is a sign of relative strength that we like to see,” added Wald.

“For levels, $1,450 is one we’re watching. There’s a key retracement there,” said Wald. “We still think this stock works for the long term. Bullish long term, near term let it stabilize for longer.”

Amazon last broke below $1,450 on Nov. 20. It is a 6.6 percent decline from reaching it again.

The fundamentals case supports longer-term gains even if the stock’s performance suggest more pain could come, said Boris Schlossberg, managing director of FX strategy at BK Asset Management.

“We have to separate Amazon the company from Amazon the stock,” Schlossberg said Monday on “Trading Nation.” “The stock went on a parabolic run and now it’s correcting properly.”

At its peak in September, Amazon shares had rallied 75 percent for the year. Since then, it has tumbled 24 percent and entered a bear market.

As a company, Amazon should continue to deliver, said Schlossberg.

“Amazon is just simply an unbelievable juggernaut of execution and I love it for the long term, but for the short term the stock is going to wallow so you probably just want to simply collect it by selling puts,” he said.

Selling a put is typically a bullish bet where the seller has an obligation to buy the stock at a predetermined price.


Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: keris lahiff, source, bryan r smith, kcna, thomas barwick getty images, lawrence mcdonald
Keywords: news, cnbc, companies, stock, think, simply, faces, key, worst, stabilize, term, wald, tumbled, trading, quarter, test, tracking, technical, 2008, long, amazon


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FedEx is having a dreadful December, but charts point to holiday relief rally ahead

Its extreme sell-off has pushed its stock down 33 percent from record highs set at the beginning of the year. The lowest bounce was 25 percent so that’s very positive,” added Maley. Following earnings, Maley added in an email that $180 to $185 should provide solid support for the stock even as it falls. “At the end of the day, this is an inexpensive stock and it’s definitely been beaten down I think aggressively and I think it’s cheap,” added Sanchez. FedEx trades at 10 times forward earnings, w


Its extreme sell-off has pushed its stock down 33 percent from record highs set at the beginning of the year. The lowest bounce was 25 percent so that’s very positive,” added Maley. Following earnings, Maley added in an email that $180 to $185 should provide solid support for the stock even as it falls. “At the end of the day, this is an inexpensive stock and it’s definitely been beaten down I think aggressively and I think it’s cheap,” added Sanchez. FedEx trades at 10 times forward earnings, w
FedEx is having a dreadful December, but charts point to holiday relief rally ahead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: keris lahiff, source, bryan r smith, kcna, thomas barwick getty images, lawrence mcdonald
Keywords: news, cnbc, companies, weekly, times, ahead, earnings, added, sanchez, relief, holiday, rally, look, fedex, stock, beginning, having, dreadful, point, charts, maley


FedEx is having a dreadful December, but charts point to holiday relief rally ahead

FedEx is tumbling after hours following its earnings release.

The stock is down 4 percent after the bell and tracking for its worst month in nearly a decade.

The package-delivery company has plummeted 20 percent in December, a loss not seen since January 2009. Its extreme sell-off has pushed its stock down 33 percent from record highs set at the beginning of the year.

Matt Maley, equity strategist at Miller Tabak, sees a technical breakout forming.

“It actually has a lot of potential,” Maley said on CNBC’s “Trading Nation” on Tuesday. “If you look at the weekly chart, it’s broken below its 200-week moving average. Usually that’s pretty negative for a stock. However, if you look, it’s only done that three times since the financial crisis and in all three of those occasions it bounced back very quickly.”

When FedEx has previously broken below that long-term trendline, it has averaged a 45 percent rally over the following six months, according to Maley’s calculations.

The severity of its recent declines has also set up a strong technical picture, he said.

“Look at its weekly RSI, it’s only been this oversold five other times and each one of those cases, it’s bounced back strongly. The lowest bounce was 25 percent so that’s very positive,” added Maley.

A 25 percent gain would take FedEx shares above $230. It has not traded above that level since the beginning of the month.

Following earnings, Maley added in an email that $180 to $185 should provide solid support for the stock even as it falls. It has not fallen below $180 in just over two years.

Gina Sanchez, CEO of Chantico Global, says some of the damage to FedEx may have been too extreme.

“If you look at what’s been weighing down FedEx recently, it’s been the concern around China and where trade goes from here — obviously that matters to FedEx — but also what happens with Amazon Air,” said Sanchez.

Those risks could be already priced in and might be fading, says Sanchez. On trade, progress is expected in talks with China in the New Year, while Sanchez notes there have been doubts over how well Amazon can efficiently execute on last-mile deliveries.

“At the end of the day, this is an inexpensive stock and it’s definitely been beaten down I think aggressively and I think it’s cheap,” added Sanchez.

FedEx trades at 10 times forward earnings, well below its peak of 17.6 times at the beginning of the year. The S&P 500 trades at 14.6 times forward earnings.


Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: keris lahiff, source, bryan r smith, kcna, thomas barwick getty images, lawrence mcdonald
Keywords: news, cnbc, companies, weekly, times, ahead, earnings, added, sanchez, relief, holiday, rally, look, fedex, stock, beginning, having, dreadful, point, charts, maley


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Treasury yields fall as Chinese data disappoints; traders look ahead to Fed meeting

U.S. government debt prices rose on Friday as traders digested fresh economic data out of China and looked ahead to next week’s Federal Reserve meeting. The yield on the benchmark 10-year Treasury note fell steeply to 2.875 percent, while the yield on the 30-year Treasury bond dropped to 3.136 percent. Bond yields move inversely to prices. Investors turned their attention to worse-than-expected Chinese data. News of the disappointing figures comes as China and the U.S. try to negotiate a trade d


U.S. government debt prices rose on Friday as traders digested fresh economic data out of China and looked ahead to next week’s Federal Reserve meeting. The yield on the benchmark 10-year Treasury note fell steeply to 2.875 percent, while the yield on the 30-year Treasury bond dropped to 3.136 percent. Bond yields move inversely to prices. Investors turned their attention to worse-than-expected Chinese data. News of the disappointing figures comes as China and the U.S. try to negotiate a trade d
Treasury yields fall as Chinese data disappoints; traders look ahead to Fed meeting Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: ryan browne, bryan r smith, afp, getty images
Keywords: news, cnbc, companies, treasury, chinese, look, data, fall, worsethanexpected, yields, meeting, traders, rose, bond, widen, disappoints, fed, yield, china, trade


Treasury yields fall as Chinese data disappoints; traders look ahead to Fed meeting

U.S. government debt prices rose on Friday as traders digested fresh economic data out of China and looked ahead to next week’s Federal Reserve meeting.

The yield on the benchmark 10-year Treasury note fell steeply to 2.875 percent, while the yield on the 30-year Treasury bond dropped to 3.136 percent. Bond yields move inversely to prices.

Investors turned their attention to worse-than-expected Chinese data. The country’s industrial output in November grew 5.4 percent from the previous year, less than the 5.9 percent estimated by Reuters; retail sales, meanwhile, rose 8.1 percent last month, falling short of an expected 8.8 percent.

News of the disappointing figures comes as China and the U.S. try to negotiate a trade deal within a 90-day tariffs truce. Positive headlines around trade relations between the two had buoyed market sentiment earlier this week.

President Donald Trump said discussions with Beijing had been “very productive” and that some “important announcements” were forthcoming, while a Wall Street Journal report said China was preparing to widen foreign access to its economy.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: ryan browne, bryan r smith, afp, getty images
Keywords: news, cnbc, companies, treasury, chinese, look, data, fall, worsethanexpected, yields, meeting, traders, rose, bond, widen, disappoints, fed, yield, china, trade


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Researchers are turning bumblebees into live drones

The smaller the drone, the shorter the flight time — unless your drone is a real live bumblebee. Average hobby drones typically have a flight time of around 20 minutes because rotary aircraft require a great deal of energy to stay airborne — more energy means heavier batteries. Vikram Iyer, Rajalakshmi Nandakumar, Anran Wang, Sawyer B. Fuller and Shyamnath Gollakota refer to it as Living IoT — a flying wireless platform, which includes sensors, wireless communication and location trackers, that


The smaller the drone, the shorter the flight time — unless your drone is a real live bumblebee. Average hobby drones typically have a flight time of around 20 minutes because rotary aircraft require a great deal of energy to stay airborne — more energy means heavier batteries. Vikram Iyer, Rajalakshmi Nandakumar, Anran Wang, Sawyer B. Fuller and Shyamnath Gollakota refer to it as Living IoT — a flying wireless platform, which includes sensors, wireless communication and location trackers, that
Researchers are turning bumblebees into live drones Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: barbara booth, photo, mark stone, university of washington, university of washington, bryan r smith, getty images, nicola katie, istock, roger wright
Keywords: news, cnbc, companies, researchers, drones, wireless, turning, weighs, package, mg, drone, live, insects, seven, bumblebees, flight, weight


Researchers are turning bumblebees into live drones

The smaller the drone, the shorter the flight time — unless your drone is a real live bumblebee.

Average hobby drones typically have a flight time of around 20 minutes because rotary aircraft require a great deal of energy to stay airborne — more energy means heavier batteries. So what do you do if your drone is the size of an insect?

On Tuesday, engineers at the University of Washington announced they have come up with a power source both strong and light enough to keep their “drone” in flight for a continuous stretch of about seven hours.

Their solution? Leveraging nature’s flying machines.

Vikram Iyer, Rajalakshmi Nandakumar, Anran Wang, Sawyer B. Fuller and Shyamnath Gollakota refer to it as Living IoT — a flying wireless platform, which includes sensors, wireless communication and location trackers, that ride aboard live insects. In this case, a bumblebee that will soar over huge fields and monitor temperature, humidity or crop health.

Because insects can fly on their own, the package requires only a tiny rechargeable battery that can last for seven hours of flight. The whole sensor package costs just a few dollars and weighs only 102 mg, or about the weight of seven grains of uncooked rice. (Bumblebees can carry payloads close to their body weight. A single bee weighs .00025 lbs, or 113 mg.)


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: barbara booth, photo, mark stone, university of washington, university of washington, bryan r smith, getty images, nicola katie, istock, roger wright
Keywords: news, cnbc, companies, researchers, drones, wireless, turning, weighs, package, mg, drone, live, insects, seven, bumblebees, flight, weight


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International stocks will beat US stocks over next decade: Vanguard Group

Vanguard’s primary concern is that many U.S. investors have built too large an overweight to U.S. stocks. “It’s really a math equation,” said Vanguard CEO Tim Buckley in a CNBC interview later on Tuesday. The Vanguard CEO said investors should expect a balanced portfolio to return 5 percent in the coming years. Vanguard does expect the Fed to continue to raise rates toward 3 percent with a strong labor market and a 30-year low in unemployment. But Vanguard does not see the likelihood of a recess


Vanguard’s primary concern is that many U.S. investors have built too large an overweight to U.S. stocks. “It’s really a math equation,” said Vanguard CEO Tim Buckley in a CNBC interview later on Tuesday. The Vanguard CEO said investors should expect a balanced portfolio to return 5 percent in the coming years. Vanguard does expect the Fed to continue to raise rates toward 3 percent with a strong labor market and a 30-year low in unemployment. But Vanguard does not see the likelihood of a recess
International stocks will beat US stocks over next decade: Vanguard Group Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: eric rosenbaum, lucas jackson, akio kon, bloomberg, getty images, bryan r smith, afp, brendan mcdermid, nicholas kamm, scott mlyn
Keywords: news, cnbc, companies, stocks, group, fed, international, beat, growth, vanguard, does, recent, trade, earnings, market, expect, decade


International stocks will beat US stocks over next decade: Vanguard Group

Vanguard’s primary concern is that many U.S. investors have built too large an overweight to U.S. stocks. Over the past five years, the U.S. stock market has returned over 10 percent a year on an annualized basis while international stocks have returns about 2 percent. The traditional 60/40 portfolio — 60 percent U.S. stocks and 40 percent U.S. bonds — would now be as high as 70/30 given the 10.8 percent annualized return on equities and 1.8 percent return on bonds.

“It’s really a math equation,” said Vanguard CEO Tim Buckley in a CNBC interview later on Tuesday. “When you start off with higher valuations you are just going to get lower returns going forward. … Markets have come down a bit … We were at frothy valuations to now simply high valuations.”

Vanguard does not expect the U.S. economy to go over a cliff any time soon, but it does expect earnings growth to slow over the next 12 months, and in the short-term, for the recent bout of market volatility to continue, or even accelerate. A deal between the U.S. and China could change that outlook.

Amid concerns about peak earnings that contributed to the recent selloff, Davis said that earnings growth should remain strong over the next year, but after that the benefits of the tax cuts will start to diminish and the U.S. economy will see “standard economic growth” — closer to 2 percent GDP growth — and that will be the primary driver of stock earnings. “So it is going to slow down,” he said.

Buckley said the only way to predict a pace of U.S. stock growth that matches that of recent years is “to imagine serious economic growth and companies that can do extremely well,” but the fiscal stimulus already enacted makes that a hard argument to support. The trade war could settle down and productivity could outperform all expectations, but it would take a hard-to-see combination of events for returns to match the 10 percent annualized rate of recent years. The Vanguard CEO said investors should expect a balanced portfolio to return 5 percent in the coming years.

“If we get a trade deal, we will see a dark cloud lifted,” Davis said. “Uncertainty over trade tensions has had an impact on widening credit spreads and has been a depressing factor for equities.”

Vanguard does expect the Fed to continue to raise rates toward 3 percent with a strong labor market and a 30-year low in unemployment. “We think the Fed still has ammunition unless something else breaks in the economy,” and the central bank will “gradually continue to tighten,” the Vanguard CIO said.

There could even be stronger-than-expected tightening by the Fed if the U.S. unemployment rate drops closer to 3 percent from its current 3.7 percent level. Vanguard currently projects the Fed will do one more hike in December and two in 2019 due to the data on core inflation and labor market tightness.

But Vanguard does not see the likelihood of a recession in 2019, though that risk will increase in early 2020 if the Fed continues to be more restrictive in its policy.


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: eric rosenbaum, lucas jackson, akio kon, bloomberg, getty images, bryan r smith, afp, brendan mcdermid, nicholas kamm, scott mlyn
Keywords: news, cnbc, companies, stocks, group, fed, international, beat, growth, vanguard, does, recent, trade, earnings, market, expect, decade


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