US Treasury yields tick higher as investors await key central bank meetings

US companies are canceling investment into China at a faster… The latest Amcham survey shows that some U.S. firms in China are speeding up their move away from the mainland as increasing tariffs bite. China Economyread more


US companies are canceling investment into China at a faster… The latest Amcham survey shows that some U.S. firms in China are speeding up their move away from the mainland as increasing tariffs bite. China Economyread more
US Treasury yields tick higher as investors await key central bank meetings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: sam meredith
Keywords: news, cnbc, companies, central, mainland, bank, latest, speeding, increasing, survey, meetings, firms, china, yields, treasury, shows, await, key, tariffs, tick, investors, investment, higher


US Treasury yields tick higher as investors await key central bank meetings

US companies are canceling investment into China at a faster…

The latest Amcham survey shows that some U.S. firms in China are speeding up their move away from the mainland as increasing tariffs bite.

China Economy

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Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: sam meredith
Keywords: news, cnbc, companies, central, mainland, bank, latest, speeding, increasing, survey, meetings, firms, china, yields, treasury, shows, await, key, tariffs, tick, investors, investment, higher


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‘Gold is the way to go’ as interest rates fall, says Mark Mobius

VCG | Visual China Group | Getty ImagesVeteran investor Mark Mobius is bullish on gold as central banks around the world cut interest rates. “All the central banks are trying to get interest rates down, they are pumping money into the system. In the first half of this year, central banks bought 374 metric tons of gold, reported the World Gold Council. The 2019 Central Bank Gold Reserve survey, conducted by the World Gold Council and released in July, also found there was central bank demand for


VCG | Visual China Group | Getty ImagesVeteran investor Mark Mobius is bullish on gold as central banks around the world cut interest rates. “All the central banks are trying to get interest rates down, they are pumping money into the system. In the first half of this year, central banks bought 374 metric tons of gold, reported the World Gold Council. The 2019 Central Bank Gold Reserve survey, conducted by the World Gold Council and released in July, also found there was central bank demand for
‘Gold is the way to go’ as interest rates fall, says Mark Mobius Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: huileng tan
Keywords: news, cnbc, companies, council, gold, mark, interest, fall, demand, dollar, banks, mobius, currency, central, way, world, system, rates


'Gold is the way to go' as interest rates fall, says Mark Mobius

A staff member shows gold ornaments at a jewelry store on June 21, 2019 in Huzhou, Zhejiang Province of China. VCG | Visual China Group | Getty Images

Veteran investor Mark Mobius is bullish on gold as central banks around the world cut interest rates. “Physical gold is the way to go, in my view, because of the incredible increase in money supply,” said Mobius, the founding partner of Mobius Capital Partners. “All the central banks are trying to get interest rates down, they are pumping money into the system. Then, you have all of the cryptocurrencies coming in, so nobody really knows how much currency is out there,” he told CNBC’s “Street Signs” on Friday. Amid expectations of slowing global growth, central banks around the world have been lowering interest rates, as they seek to boost money supply in the economy, stoke demand and provide an impetus to growth.

Mobius recommends that investors hold 10% of their portfolios in physical gold, with the rest invested in dividend yielding equities. That’s especially if the dollar gets weaker. In his view, “the U.S. government, the Trump White House, does not want a strong dollar.” “They are certainly going to try to weaken the dollar against other currencies and of course, it’s a race to the bottom. Because, as soon as they do that, other currencies will also weaken,” said Mobius. “People are going to finally realize that you got to have gold, because all the currencies will be losing value,” he added. Gold can retain its value much better than other forms of currency, and is traditionally a safe haven during market volatility. A weaker dollar tends to boost the price of gold as global trade in the yellow metal is denominated in U.S. dollars. “At the end of the day, gold is a means of exchange. It’s a stable currency in some way,” said Mobius.

Central banks are buying gold

Data from the World Gold Council this year point to rising central bank demand for the yellow metal amid global macroeconomic uncertainty. In the first half of this year, central banks bought 374 metric tons of gold, reported the World Gold Council. That was the largest net increase for the first half of the year since at least 2000. “Deep down inside, the central bankers do believe in gold, but they don’t want to say it because … they won’t be able to create new currency,” said Mobius. The 2019 Central Bank Gold Reserve survey, conducted by the World Gold Council and released in July, also found there was central bank demand for gold in the short to medium term. Of those polled, 11% of emerging market and developing economy central banks said they intended to increase their gold reserves over the next 12 months. That was similar to data from 2018 when 12% of such central banks bought gold, giving rise to 652 metric tons of central bank gold demand — the highest level on record under the current international monetary system, noted the World Gold Council. “The planned purchases are being driven by higher economic risks in reserve currencies. In the medium term, central banks see changes in the international monetary system, with a greater role for the Chinese renminbi and gold,” said the World Gold Council in their report. The renminbi is another name for the Chinese yuan. About 40% of emerging market and developing economy central banks cited “anticipated changes in the international monetary system being relevant to their decision to hold gold,” the World Gold Council said.

China also investing in gold


Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: huileng tan
Keywords: news, cnbc, companies, council, gold, mark, interest, fall, demand, dollar, banks, mobius, currency, central, way, world, system, rates


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Analysts divided on ECB stimulus prospects amid conflicting tones from officials

Analysts are split over what to expect from the European Central Bank (ECB) on Thursday, after central bank officials moved to downplay market expectations of immediate and substantial quantitative easing (QE). In June, ECB President Mario Draghi confirmed he was exploring measures to boost the 19-member euro zone economy, citing persistent low inflation and sluggish growth. However, ECB officials have dampened hopes of a substantial monetary stimulus package of late. French central bank Preside


Analysts are split over what to expect from the European Central Bank (ECB) on Thursday, after central bank officials moved to downplay market expectations of immediate and substantial quantitative easing (QE). In June, ECB President Mario Draghi confirmed he was exploring measures to boost the 19-member euro zone economy, citing persistent low inflation and sluggish growth. However, ECB officials have dampened hopes of a substantial monetary stimulus package of late. French central bank Preside
Analysts divided on ECB stimulus prospects amid conflicting tones from officials Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: elliot smith
Keywords: news, cnbc, companies, bank, ecb, prospects, singh, stimulus, round, central, amid, qe2, officials, euro, analysts, tones, conflicting, president, divided


Analysts divided on ECB stimulus prospects amid conflicting tones from officials

Analysts are split over what to expect from the European Central Bank (ECB) on Thursday, after central bank officials moved to downplay market expectations of immediate and substantial quantitative easing (QE). In June, ECB President Mario Draghi confirmed he was exploring measures to boost the 19-member euro zone economy, citing persistent low inflation and sluggish growth. These have been mooted to include a change in forward guidance, rate cuts, a tiered deposit rate and recommencing asset purchases, or QE. However, ECB officials have dampened hopes of a substantial monetary stimulus package of late. French central bank President Francois Villeroy de Galhau and Estonian central bank President Madis Muller are the latest to cast doubt on the scale of intervention. They join Sabine Lautenschlager, a member of the ECB executive board, Klaas Knot, president of the Dutch central bank, and Bundesbank President Jens Weidmann, who have all signaled skepticism about relaunching QE. The thrust of their comments seemed to contradict both Draghi and Ollie Rehn, president of the Bank of Finland, who recently called for an “impactful and significant” stimulus package.

‘Puzzling’ change of tone

Shweta Singh, managing director of global macro at TS Lombard, said in a note Wednesday that the shift in ECB communications was “puzzling.” With Italy’s economy stagnating in the second quarter while Germany, the euro area’s largest economy, contracting and indicating further weakness to come, Singh suggested there was “little room for optimism on the economic outlook.” “Manufacturing remains in the doldrums and the weakness is spreading quite rapidly to services. Businesses are revising lower their hiring and expansion plans, citing weak demand as a key constraint on production,” Singh said. The central bank’s QE program has long proven controversial in Germany, where the country’s constitutional court is embroiled in an ongoing case centering on whether the ECB’s bond-buying constitutes so-called “monetary financing,” which is prohibited under EU law. Singh also highlighted that a combination of a new round of tit-for-tat tariffs in the U.S.-China trade war, a strong dollar weighing on global financing conditions and dampening demand for euro area exports, and the chaos surrounding Brexit does little to ease these concerns. Without a great deal of support from fiscal policy, she suggested the ECB will have to do the heavy lifting, but the effectiveness of a fresh round of stimulus would depend on what form it takes.

“The marginal benefits of cutting rates that are already negative are limited at best, even if such a move is accompanied by a new round of cheaper long-term refinancing operations (TLTROs) and a tiering of deposit rates,” Singh said. She added that on the other hand, a second round of quantitative easing by the ECB (QE2) could provide a more meaningful boost to monetary and financing conditions. However, this would still have a milder impact than QE1, when “borrowing costs were higher, fragmentation across the euro area was severe and domestic risks were far greater.” “Crucially, there may be much less scope this time for the euro to edge lower and thus boost inflation expectations, while the pool of eligible assets that the ECB can buy has shrunk since QE1 was launched.” TS Lombard researchers expect that QE2 could be around a third of the size of the 2.6 trillion euros ($2.88 trillion) injected in QE1. However, they projected that if the ECB was to loosen some of its self-imposed constraints on asset purchases, such as raising issuer limits from 33% to 50%, it could buy up to 1.5 trillion euros in government, supranational and non-bank private sector debt. Singh’s team still expects a package of stimulus on Thursday, but cautioned that cutting rates without QE2 would be a “recipe for disaster.”

Go big or go home?

For the ECB to close a 0.5% inflation gap, at least 600 billion euros of QE2 would be needed, according to Pictet senior European economist Frederik Ducrozet. In a note published Thursday, Ducrozet suggested that if anything, the decreasing marginal returns of QE and the risk of a “de-anchoring of inflation expectations” call for an even more aggressive program. “Our initial expectation was for QE2 to be set at 50 billion euros per month over 12 months,” Ducrozet said. “A compromise could take the form of a smaller quantum of purchases for longer—say 30 billion over 18 months, 25 billion over two years, or even open-ended asset purchases linked to a state-contingent forward guidance. Either way, we expect the issuer limits to be raised from 33% to 50%.”


Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: elliot smith
Keywords: news, cnbc, companies, bank, ecb, prospects, singh, stimulus, round, central, amid, qe2, officials, euro, analysts, tones, conflicting, president, divided


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Euro gains on hopes of German fiscal stimulus

The euro rose on Monday after a report that Germany may boost fiscal stimulus increased hopes that governments will act to boost growth in the region, though expectations of further central bank easing kept a lid on gains. Germany is considering the creation of a “shadow budget” that would enable Berlin to boost public investment beyond the restrictions of constitutionally enshrined debt rules, three people familiar with the internal discussions told Reuters. Euro gains were capped, however, bef


The euro rose on Monday after a report that Germany may boost fiscal stimulus increased hopes that governments will act to boost growth in the region, though expectations of further central bank easing kept a lid on gains. Germany is considering the creation of a “shadow budget” that would enable Berlin to boost public investment beyond the restrictions of constitutionally enshrined debt rules, three people familiar with the internal discussions told Reuters. Euro gains were capped, however, bef
Euro gains on hopes of German fiscal stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-06
Keywords: news, cnbc, companies, fiscal, boost, stimulus, german, hopes, central, report, officials, gains, public, rai, euro, ecb, expectations, monetary


Euro gains on hopes of German fiscal stimulus

The euro rose on Monday after a report that Germany may boost fiscal stimulus increased hopes that governments will act to boost growth in the region, though expectations of further central bank easing kept a lid on gains.

Germany is considering the creation of a “shadow budget” that would enable Berlin to boost public investment beyond the restrictions of constitutionally enshrined debt rules, three people familiar with the internal discussions told Reuters.

Government officials are flirting with the idea of setting up independent public entities that would seize the historic opportunity of zero borrowing costs and take on new debt to increase investment in infrastructure and climate protection, the officials said.

A key part of that coalition is the commitment to keep balanced budgets. If they are waiving from that it could be very supportive for the euro and very bearish for the dollar, said Bipan Rai, North American head, FX strategy at CIBC Capital Markets in Toronto.

The euro gained to $1.1053 against the greenback, up 0.24% on the day, after earlier trading as low as $1.1014.

Euro gains were capped, however, before the European Central Banks meeting on Thursday, when the central bank is expected to introduce a new wave of monetary stimulus.

“The default is to be negative euro into ECB,” said Kenneth Broux, head of corporate research at Societe Generale. “Resuming bond purchases won’t do anything” to the euro zone economy because “the monetary policy in Europe has stopped being effective,” Broux added.

“The ECB has done all it can.” The euro may get a boost, however, if the ECB disappoints dovish expectations already baked into the market. We get the sense the market is expecting a bit too much of a dovish outcome this week and if that is the case that could imply that tactical long euro positions might do well, Rai said.

In the U.S., consumer price inflation data on Thursday and retail sales data on Friday are the main economic focus. They will come after the jobs report on Friday showed that U.S. jobs growth slowed more than expected in August.

The Federal Reserve will continue to act “as appropriate” to sustain the U.S. economic expansion, Fed Chair Jerome Powell said Friday in Zurich, bolstering expectations for a rate cut at the Fed’s meeting on Sept. 18.


Company: cnbc, Activity: cnbc, Date: 2019-09-06
Keywords: news, cnbc, companies, fiscal, boost, stimulus, german, hopes, central, report, officials, gains, public, rai, euro, ecb, expectations, monetary


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5 things to know before the stock market opens Wednesday

Prime Minister Boris Johnson wants to keep the no-deal scenario on the table to strengthen his hand in last-ditch negotiations with the EU. Ramon Espinosa | APHurricane Dorian was drenching the east coast of central Florida on Wednesday, while taking aim at the Carolinas. The slow-moving storm devastated parts of the Bahamas earlier this week where at least seven people were killed. The storm is seen moving near or over the coasts of South and North Carolina on Thursday through Friday morning. E


Prime Minister Boris Johnson wants to keep the no-deal scenario on the table to strengthen his hand in last-ditch negotiations with the EU. Ramon Espinosa | APHurricane Dorian was drenching the east coast of central Florida on Wednesday, while taking aim at the Carolinas. The slow-moving storm devastated parts of the Bahamas earlier this week where at least seven people were killed. The storm is seen moving near or over the coasts of South and North Carolina on Thursday through Friday morning. E
5 things to know before the stock market opens Wednesday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: matthew j belvedere
Keywords: news, cnbc, companies, opens, things, dorian, getty, stock, florida, end, central, nodeal, 2019, kong, market, boris, know


5 things to know before the stock market opens Wednesday

1. Dow to recover as bond yields move higher and key inversion goes back to normal

Traders work on the floor of the New York Stock Exchange (NYSE) on August 23, 2019 in New York City. Eduardo Munoz Alvarez | Getty Images

2. Year-end targets for S&P 500 are all over the place from down 5% to up 11%

Heading into the historically rough month of September, leading stock forecasters differ greatly on where the S&P 500 will end up by year’s end compared with predictions made the same time last year, a CNBC analysis has found. Strategists at Wall Street’s top brokerages and investment banks see a broad array of possible outcomes by the end of December with Deutsche Bank calling for an 11% rally to 3,250 and Barclays and Morgan Stanley seeing another 5% downside to 2,750.

3. Hopes build for an end to months of pro-democracy protests in Hong Kong

HONG KONG, CHINA – AUGUST 31: Protesters throw tear gas canisters back at police during an anti-government rally outside of Central Government Complex on August 31, 2019 in Hong Kong, China. Anthony Kwan | Getty Images News | Getty Images

Hong Kong stocks soared overnight, with the Hang Seng adding nearly 4%, as reports started to emerge that city leader Carrie Lam planned to formally withdraw a contentious extradition bill that’s sparked months of sometimes violent demonstrations. Early Wednesday, Lam officially abandoned the measure, satisfying one of five demands made by pro-democracy demonstrators. On Sunday, the Chinese territory saw its most violent day since the protests started in early June.

4. UK Parliament may take a no-deal Brexit off the table for PM Boris Johnson

Britain’s Prime Minister Boris Johnson SIMON DAWSON | AFP | Getty Images

The British pound was moving higher Wednesday morning, following a parliamentary vote opening the door for another Brexit delay. The move sets up another vote Wednesday on whether to block the government from proceeding with a no-deal departure from the European Union trading block on Oct. 31, if the U.K. and Brussels cannot reach agreement by that deadline. Prime Minister Boris Johnson wants to keep the no-deal scenario on the table to strengthen his hand in last-ditch negotiations with the EU.

5. Hurricane Dorian hits parts of central Florida and tracks toward the Carolinas

Volunteers walk under the wind and rain from Hurricane Dorian through a flooded road as they work to rescue families near the Causarina bridge in Freeport, Grand Bahama, Bahamas, Tuesday, Sept. 3, 2019. Ramon Espinosa | AP

Hurricane Dorian was drenching the east coast of central Florida on Wednesday, while taking aim at the Carolinas. The slow-moving storm devastated parts of the Bahamas earlier this week where at least seven people were killed. Dorian is expected to come “dangerously close” to Florida and Georgia on Wednesday night. The storm is seen moving near or over the coasts of South and North Carolina on Thursday through Friday morning. Even if Dorian does not make landfall, hurricane-force winds are still expected threaten the coastline from central Florida to North Carolina, reports NBC News.


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: matthew j belvedere
Keywords: news, cnbc, companies, opens, things, dorian, getty, stock, florida, end, central, nodeal, 2019, kong, market, boris, know


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This S&P 500 chart just sent a screaming sell signal—here’s how to trade it

So says widely followed strategist Sven Henrich, founder and lead market strategist at NorthmanTrader, who told CNBC’s “Fast Money” on Thursday that one S&P 500 chart is showing the market heading for a major drop. And while that sounds dramatic, Henrich said the market is actually already offering some support for this theory. When you have loose financial conditions, typically, central banks raise rates,” he said. “With yields collapsing, the 30-year making all-time lows, we don’t really see a


So says widely followed strategist Sven Henrich, founder and lead market strategist at NorthmanTrader, who told CNBC’s “Fast Money” on Thursday that one S&P 500 chart is showing the market heading for a major drop. And while that sounds dramatic, Henrich said the market is actually already offering some support for this theory. When you have loose financial conditions, typically, central banks raise rates,” he said. “With yields collapsing, the 30-year making all-time lows, we don’t really see a
This S&P 500 chart just sent a screaming sell signal—here’s how to trade it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: lizzy gurdus
Keywords: news, cnbc, companies, strategist, sell, screaming, chart, 500, trend, banks, trade, henrich, central, signalheres, sent, pattern, market, markets, megaphone


This S&P 500 chart just sent a screaming sell signal—here's how to trade it

Stocks are sending a sell signal.

So says widely followed strategist Sven Henrich, founder and lead market strategist at NorthmanTrader, who told CNBC’s “Fast Money” on Thursday that one S&P 500 chart is showing the market heading for a major drop.

Many market watchers have taken notice of the technical “megaphone” pattern the S&P has been forming since mid-2018, a formation made during times of heightened volatility that is also known to some as a broadening wedge.

Digging deeper, Henrich discovered a new element forming within the megaphone: an ascending triangle. Technical analysts use ascending triangles to track uptrends and determine the direction of a security depending on which way it breaks out of the pattern.

“What happened in August is that rising wedge actually broke to the downside,” Henrich said. “That’s kind of your … classic warning sign. And so markets will have to repair that, or face risk of further downside to come.”

To “repair” the trend, in Henrich’s book, the S&P would have to break above the upper trend line of its megaphone pattern, make that trend line its new floor of support and then, potentially, enjoy a “massive rally.”

But there’s still a lot of room for error, the strategist warned.

“What we’re looking at here short term is there’s a possibility the VIX goes up to 28-30” in the coming months, he said, referring to the CBOE Volatility Index, also known as the stock market’s “fear gauge.”

“There’s currently a pattern on the VIX that suggests that is a distinct possibility. We may have a buyable dip,” Henrich said. “Otherwise, with a break of 2,700, for example, you’re starting to risk that this pattern goes active. And the ultimate target [on] that one is 2,100.”

That would represent a nearly 28% drop for the S&P from its Friday levels. And while that sounds dramatic, Henrich said the market is actually already offering some support for this theory.

“Ironically, that’s kind of what the bond market’s been signaling. The 10-year [U.S. Treasury yield is] already back to the levels of the U.S. election in 2016, ” he said. “You have nine major economies around the globe already either in recession or at the verge of a recession.”

That’s what’s been causing the increasingly “violent” swings in the stock market, and the longer the U.S.-China trade debacle drags on, the riskier the environment gets, Henrich warned.

“I think the market is getting impatient,” he said. “The market wants this resolved, and to the extent that this, again, gets pushed into next year, perhaps, I think markets will lose patience as we see Europe, for example, overtly flirting … with recession at this point.”

Worse, if global central banks continue to “intervene when markets [get] into any sort of trouble” with accommodative monetary policy, their ability to step in during a full-fledged crisis may become muted, if not ineffective, Henrich said.

“The Fed actually is cutting rates here with financial conditions being the loosest in 25 years. It’s unfathomable. When you have loose financial conditions, typically, central banks raise rates,” he said. “What are they trying to accomplish here by going even looser than what we’ve seen before?”

“Look at the housing data you’re getting with mortgage apps,” he said. “With yields collapsing, the 30-year making all-time lows, we don’t really see any growth here in the housing market. So, what’s the end game here in terms of efficacy? And I worry that, obviously, we are reaching a point where central banks can only do so much.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: lizzy gurdus
Keywords: news, cnbc, companies, strategist, sell, screaming, chart, 500, trend, banks, trade, henrich, central, signalheres, sent, pattern, market, markets, megaphone


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Argentina imposes currency controls as its economic crisis deepens

A woman walks with an Argentinian flag during a march in support of President Mauricio Macri on August 24, 2019 in Buenos Aires, Argentina. Argentina’s government has imposed currency controls in a bid to stabilize financial markets, as Latin America’s third-largest economy faces a deepening economic crisis. The temporary measures, announced on Sunday, allow the government to restrict foreign currency purchases following a sharp drop in the super-sensitive peso. All companies must now request pe


A woman walks with an Argentinian flag during a march in support of President Mauricio Macri on August 24, 2019 in Buenos Aires, Argentina. Argentina’s government has imposed currency controls in a bid to stabilize financial markets, as Latin America’s third-largest economy faces a deepening economic crisis. The temporary measures, announced on Sunday, allow the government to restrict foreign currency purchases following a sharp drop in the super-sensitive peso. All companies must now request pe
Argentina imposes currency controls as its economic crisis deepens Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: sam meredith
Keywords: news, cnbc, companies, crisis, controls, imposes, mauricio, currency, deepens, place, argentina, central, president, financial, measures, markets, economic, foreign


Argentina imposes currency controls as its economic crisis deepens

A woman walks with an Argentinian flag during a march in support of President Mauricio Macri on August 24, 2019 in Buenos Aires, Argentina.

Argentina’s government has imposed currency controls in a bid to stabilize financial markets, as Latin America’s third-largest economy faces a deepening economic crisis.

The temporary measures, announced on Sunday, allow the government to restrict foreign currency purchases following a sharp drop in the super-sensitive peso.

All companies must now request permission from Argentina’s central bank to sell pesos and buy foreign currency to make transfers abroad.

In an official bulletin issued on Sunday, the government said currency controls were necessary “to ensure the normal functioning of the economy.”

The latest move follows the surprise announcement on Wednesday that Argentina would seek to defer payments on roughly $100 billion of debt, which credit rating agency S&P classified as a default under its own criteria.

The measures — which will remain in place until the end of the year — constitute a startling turnabout for President Mauricio Macri.

Shortly after starting his term in December 2015, the embattled leader of South America’s second-largest country abruptly removed strict capital controls that had been in place since 2011.

Macri’s government and the central bank are trying to shore up confidence in financial markets ahead of the presidential election on October 27.


Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: sam meredith
Keywords: news, cnbc, companies, crisis, controls, imposes, mauricio, currency, deepens, place, argentina, central, president, financial, measures, markets, economic, foreign


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The Fed’s efforts to stay out of politics just got a lot tougher this week

What results is that the Fed and its long-held independence crucial to its decision-making are facing a test perhaps like never before. “What I sense in the last few days is a growing desire among current and former Fed officials to fight back.” Reaction is swiftThe commentary drew widespread attention around Wall Street and on social media, most of it was negative. And Ed Yardeni, founder of Yardeni Research, marveled at just how far the public scrutiny of Fed actions has gone. Dudley, a regist


What results is that the Fed and its long-held independence crucial to its decision-making are facing a test perhaps like never before. “What I sense in the last few days is a growing desire among current and former Fed officials to fight back.” Reaction is swiftThe commentary drew widespread attention around Wall Street and on social media, most of it was negative. And Ed Yardeni, founder of Yardeni Research, marveled at just how far the public scrutiny of Fed actions has gone. Dudley, a regist
The Fed’s efforts to stay out of politics just got a lot tougher this week Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: jeff cox
Keywords: news, cnbc, companies, tougher, political, week, powell, yellen, fed, rate, central, public, commentary, feds, lot, trump, stay, politics, efforts, dudley


The Fed's efforts to stay out of politics just got a lot tougher this week

If there had been any doubt that the Federal Reserve is under unprecedented political pressure, this week’s incendiary commentary from former New York Fed President William Dudley cemented the notion. Where once the heat had been coming primarily from President Donald Trump and his demand for rate cuts, the latest round emanated from the other side — a prominent one-time central banker who urged defiance and even tried to nudge the central bank into a political fray that its members have been trying assiduously to avoid. What results is that the Fed and its long-held independence crucial to its decision-making are facing a test perhaps like never before.

“Everything they say and everything they do is going to be viewed through the prism of this titanic battle,” said Greg Valliere, chief global strategist at AGF and a veteran markets and politics analyst. “What I sense in the last few days is a growing desire among current and former Fed officials to fight back.” Dudley’s comments came amid a series of public statements that are out of character for normally staid central bankers who have a long history of not using public forums to tell each other what to do. For instance, former Fed Chair Janet Yellen, Powell’s immediate predecessor, recently said the Fed should consider a rate cut, just days before Powell and Co. did just that. Earlier this month, Yellen and former chairmen, Alan Greenspan Ben Bernanke and Paul Volcker penned a remarkable op-ed for the Wall Street Journal stressing the need for an independent Fed free of political pressure. While the missive did not mention Trump and his criticisms specifically, the intention was clear. Of course, it’s also unusual for presidents to criticize the Fed as forcefully as Trump has, though his frequent tweets hammering at Fed Chairman Jerome Powell and his colleagues have quickly become routine. But Dudley’s commentary for Bloomberg Opinion seemed to put the dialogue on a different plane. He is someone who held one of the Fed’s most influential positions and not only stated a position on rate cuts — he’s against — but also encouraged holding the line as a way to spite Trump and perhaps torpedo his re-election chances next year. “After all, Trump’s reelection arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives. If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020,” he wrote.

Reaction is swift

The commentary drew widespread attention around Wall Street and on social media, most of it was negative. Hedge fund titan Kyle Bass called Dudley “rogue.” Bear Traps Report founder Lawrence McDonald wondered if Dudley was speaking for more than himself and perhaps was representing the sentiment of Powell and others at the Fed. And Ed Yardeni, founder of Yardeni Research, marveled at just how far the public scrutiny of Fed actions has gone. “I am almost speechless,” he wrote in his morning note to clients Wednesday. “Dudley may be calling on the Fed to join the resistance and to fight fire with fire, but that would be playing with fire for the Fed. Welcome to the New Abnormal, where everyone loses their minds! Trump has the amazing ability to make sane people go insane.” The essay also elicited a rare public response from the Fed to criticism, with a spokesman saying that “political considerations play absolutely no role” in making monetary policy. Dudley, a registered Democrat and former Goldman Sachs economist, did not respond to a request for further comment.

Powell ‘just has to blow it off’


Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: jeff cox
Keywords: news, cnbc, companies, tougher, political, week, powell, yellen, fed, rate, central, public, commentary, feds, lot, trump, stay, politics, efforts, dudley


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Hong Kong accountants join protests, but they’re ‘civilized and calm’

Accountants in Hong Kong took to the streets on Friday to call for the government to accept five demands of the people, including the complete withdrawal of a now-suspended extradition bill. “It’s time for us to stage a really civilized and calm march in the central business district to show that we’re still not happy with how the whole issue has been handled, and (the) government has to respond positively to the demands of the people,” Hong Kong legislator, Kenneth Leung, told CNBC on Friday, a


Accountants in Hong Kong took to the streets on Friday to call for the government to accept five demands of the people, including the complete withdrawal of a now-suspended extradition bill. “It’s time for us to stage a really civilized and calm march in the central business district to show that we’re still not happy with how the whole issue has been handled, and (the) government has to respond positively to the demands of the people,” Hong Kong legislator, Kenneth Leung, told CNBC on Friday, a
Hong Kong accountants join protests, but they’re ‘civilized and calm’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: stella soon
Keywords: news, cnbc, companies, kong, central, civilized, protests, district, theyre, accountants, join, told, territory, demands, hong, withdrawal, took, calm, systems


Hong Kong accountants join protests, but they're 'civilized and calm'

Accountants in Hong Kong took to the streets on Friday to call for the government to accept five demands of the people, including the complete withdrawal of a now-suspended extradition bill.

“It’s time for us to stage a really civilized and calm march in the central business district to show that we’re still not happy with how the whole issue has been handled, and (the) government has to respond positively to the demands of the people,” Hong Kong legislator, Kenneth Leung, told CNBC on Friday, ahead of the march.

The march was set to take place from Chater Garden, in the central district of Hong Kong, to the central government office.

Hong Kong was a British colony until 1997, when it became a special administrative region of China under the “one country, two systems” framework which allows the territory a certain degree of legal and economic autonomy.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: stella soon
Keywords: news, cnbc, companies, kong, central, civilized, protests, district, theyre, accountants, join, told, territory, demands, hong, withdrawal, took, calm, systems


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US futures point to higher open ahead of Powell’s speech

U.S. stock index futures were higher Friday morning, as market participants awaited a key speech from the Federal Reserve’s top official. ET, Dow futures rose 108 points, indicating a positive open of more than 92 points. Futures on the S&P and Nasdaq were both slightly higher. Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided U.S. central bank in years. In corporate news, Foot Locker, Buckle and Red Robin Gourmet Burgers are expected to report th


U.S. stock index futures were higher Friday morning, as market participants awaited a key speech from the Federal Reserve’s top official. ET, Dow futures rose 108 points, indicating a positive open of more than 92 points. Futures on the S&P and Nasdaq were both slightly higher. Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided U.S. central bank in years. In corporate news, Foot Locker, Buckle and Red Robin Gourmet Burgers are expected to report th
US futures point to higher open ahead of Powell’s speech Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: sam meredith
Keywords: news, cnbc, companies, futures, powells, central, powell, points, market, point, higher, ahead, fed, expected, rate, open, speech, morning


US futures point to higher open ahead of Powell's speech

U.S. stock index futures were higher Friday morning, as market participants awaited a key speech from the Federal Reserve’s top official.

At around 03:00 a.m. ET, Dow futures rose 108 points, indicating a positive open of more than 92 points. Futures on the S&P and Nasdaq were both slightly higher.

Market focus is largely attuned to the U.S. central bank’s annual Jackson Hole symposium, with Fed Chairman Jerome Powell expected to address an audience of policymakers and economists at around 10:00 a.m. ET.

Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided U.S. central bank in years.

It comes as both the Fed and Powell are under an unprecedented siege from an angry president, while a speech that fails to assure investors the U.S. central bank will continue to cut interest rates could create even more market volatility.

As of Friday morning, Fed funds futures were pricing a likelihood of almost 90% for a 25 basis point rate cut at the September meeting, and between one or two further quarter-point rate cuts between then and the end of the year.

On the data front, new home sales for July will be released at around 10:00 a.m. ET.

In corporate news, Foot Locker, Buckle and Red Robin Gourmet Burgers are expected to report their latest quarterly results before the opening bell.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: sam meredith
Keywords: news, cnbc, companies, futures, powells, central, powell, points, market, point, higher, ahead, fed, expected, rate, open, speech, morning


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