IBM’s Ginni Rometty says she sees no change in CEO confidence since Powell’s last fed speech

CEO confidence has been flat since Federal Reserve Chairman Jerome Powell announced last month that the agency would be “patient” in determining future interest rate hikes, IBM’s Ginni Rometty told CNBC Tuesday. Markets began to swing up after Powell’s comments, but CEO sentiment has remained the same, said Rometty, who is also chair and president of IBM. Rometty also announced that IBM would open its Watson artificial intelligence service to all cloud platforms, not just IBM’s cloud. The move w


CEO confidence has been flat since Federal Reserve Chairman Jerome Powell announced last month that the agency would be “patient” in determining future interest rate hikes, IBM’s Ginni Rometty told CNBC Tuesday. Markets began to swing up after Powell’s comments, but CEO sentiment has remained the same, said Rometty, who is also chair and president of IBM. Rometty also announced that IBM would open its Watson artificial intelligence service to all cloud platforms, not just IBM’s cloud. The move w
IBM’s Ginni Rometty says she sees no change in CEO confidence since Powell’s last fed speech Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: tyler clifford
Keywords: news, cnbc, companies, rometty, change, powells, ibms, speech, ginni, street, watson, cloud, run, powell, sees, ceo, fed, providers, think, confidence, ibm, growth


IBM's Ginni Rometty says she sees no change in CEO confidence since Powell's last fed speech

CEO confidence has been flat since Federal Reserve Chairman Jerome Powell announced last month that the agency would be “patient” in determining future interest rate hikes, IBM’s Ginni Rometty told CNBC Tuesday.

“I think it’s been fairly steady and I hear from all of my colleagues that everyone is still planning … both ways” whether for “growth or efficiency,” Rometty said on “Squawk on the Street” during a sit down with CNBC’s Jon Fortt from the Think 2019 conference in San Francisco.

Many investors have been uncertain about the prospects of the markets this year. Some are bracing for the bull rally to continue running while others are preparing for stocks to fall the other way. Earlier last month, Powell said the central bank would keep an eye on economic growth throughout the year and adjust monetary policy if growth slows.

That’s left Wall Street watchers and company executives in limbo, who are adjusting their own plans to Fed policy. Markets began to swing up after Powell’s comments, but CEO sentiment has remained the same, said Rometty, who is also chair and president of IBM.

“Over a curve over time … you would’ve seen more toward the growth side,” she said. But “I see that balance now between growth and efficiency initiatives and I actually see that staying very firm.”

Rometty also announced that IBM would open its Watson artificial intelligence service to all cloud platforms, not just IBM’s cloud. The move will give IBM customers capability to manage and run data under the clouds run by providers like Microsoft and Amazon.

“Watson can run on your premise … it can run on any cloud and it can connect between them,” Rometty said. “This is a big piece — not just of Watson — a big piece of hybrid cloud,” she said, referring to the idea of mixing on-premises software with services from multiple cloud providers. “We think that’s a trillion dollar market and we’ll be number 1 in it.”

Shares of IBM are trading about 1.4 percent higher as of midday. The stock is up almost 20 percent this year.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: tyler clifford
Keywords: news, cnbc, companies, rometty, change, powells, ibms, speech, ginni, street, watson, cloud, run, powell, sees, ceo, fed, providers, think, confidence, ibm, growth


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Silicon Valley VC Confidence Index most pessimistic since 2009

Silicon Valley investors may be excited about all the wacky innovation in their backyard, but the political environment and global economy is really bringing them down. Optimism among venture capitalists in the area dropped to the lowest level in almost a decade in the fourth quarter, according to the Silicon Valley Venture Capitalist Confidence Index, a quarterly survey of 28 Bay Area VCs released on Thursday. Confidence hasn’t been this low since 2009, when the country was still mired in a his


Silicon Valley investors may be excited about all the wacky innovation in their backyard, but the political environment and global economy is really bringing them down. Optimism among venture capitalists in the area dropped to the lowest level in almost a decade in the fourth quarter, according to the Silicon Valley Venture Capitalist Confidence Index, a quarterly survey of 28 Bay Area VCs released on Thursday. Confidence hasn’t been this low since 2009, when the country was still mired in a his
Silicon Valley VC Confidence Index most pessimistic since 2009 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: ari levy, eric risberg
Keywords: news, cnbc, companies, index, wrote, 2009, pessimistic, venture, valley, silicon, confidence, political, survey, vc, area, creation, innovation


Silicon Valley VC Confidence Index most pessimistic since 2009

Silicon Valley investors may be excited about all the wacky innovation in their backyard, but the political environment and global economy is really bringing them down.

Optimism among venture capitalists in the area dropped to the lowest level in almost a decade in the fourth quarter, according to the Silicon Valley Venture Capitalist Confidence Index, a quarterly survey of 28 Bay Area VCs released on Thursday. Confidence hasn’t been this low since 2009, when the country was still mired in a historic banking and housing crisis.

“Seldom have political concerns so significantly impacted confidence and the factors that underpin the venture creation and innovation machine of Silicon Valley,” wrote Mark Cannice, a professor at the University of San Francisco School of Management, in the report, which he’s been producing since 2004. “However, current political wrangling, both domestically and abroad, now threatens the smooth functioning of the venture creation business model.”

The survey results account for the start of the government shutdown, which began as the year was wrapping up and threatened to disrupt the 2019 IPO pipeline. It created yet another challenge for a technology industry that’s already concerned about a potential trade war with China and additional regulation, following the privacy-related issues that have plagued Facebook and Google.


Company: cnbc, Activity: cnbc, Date: 2019-02-08  Authors: ari levy, eric risberg
Keywords: news, cnbc, companies, index, wrote, 2009, pessimistic, venture, valley, silicon, confidence, political, survey, vc, area, creation, innovation


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Janet Yellen worries Trump comments could hurt confidence, says Fed should remain independent

Former Federal Reserve Chair Janet Yellen defended the central bank’s independence after months of strong criticism from President Donald Trump. “It is important for the Fed to be viewed as independent, and I worry that the comments threaten public confidence,” Yellen told CNBC’s Steve Liesman on Power Lunch Wednesday. There is some history of Presidents trying to influence the Fed, and reportedly [Richard] Nixon influenced Arthur Burns. After months of strong criticism, Fed Chair Jerome Powell


Former Federal Reserve Chair Janet Yellen defended the central bank’s independence after months of strong criticism from President Donald Trump. “It is important for the Fed to be viewed as independent, and I worry that the comments threaten public confidence,” Yellen told CNBC’s Steve Liesman on Power Lunch Wednesday. There is some history of Presidents trying to influence the Fed, and reportedly [Richard] Nixon influenced Arthur Burns. After months of strong criticism, Fed Chair Jerome Powell
Janet Yellen worries Trump comments could hurt confidence, says Fed should remain independent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: yun li, scott mlyn
Keywords: news, cnbc, companies, president, confidence, janet, remain, yellen, important, strong, fed, richard, powell, months, central, worries, independent, comments, trump, public, hurt


Janet Yellen worries Trump comments could hurt confidence, says Fed should remain independent

Former Federal Reserve Chair Janet Yellen defended the central bank’s independence after months of strong criticism from President Donald Trump.

“It is important for the Fed to be viewed as independent, and I worry that the comments threaten public confidence,” Yellen told CNBC’s Steve Liesman on Power Lunch Wednesday.

“It’s important for the public and for market participants to understand that the actions that the Fed takes are truly in response to its congressional mandate of maximum employment and price stability. There is some history of Presidents trying to influence the Fed, and reportedly [Richard] Nixon influenced Arthur Burns. It’s important for the sake of the Fed’s credibility and the confidence in the institution,” Yellen added.

Trump has repeatedly criticized the central bank for slowing the economy, even saying the Fed has “gone crazy” by continuing to raise interest rates. After months of strong criticism, Fed Chair Jerome Powell and Trump finally had their first official meeting.

The two sat down at dinner together on Monday for about an hour and a half, with Fed Vice Chairman Richard Clarida and Treasury Secretary Steven Mnuchin also in attendance. Mnuchin described the dinner as “very casual” and said the Fed chief gave the president an overview of the economy.

Yellen served as the central bank’s chief from 2014 to 2018. Powell succeeded her in February last year.


Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: yun li, scott mlyn
Keywords: news, cnbc, companies, president, confidence, janet, remain, yellen, important, strong, fed, richard, powell, months, central, worries, independent, comments, trump, public, hurt


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Bolsonaro’s pro-market agenda faces its first test of confidence as Brazil’s Congress returns

The real business of governing for Brazil’s newly-elected populist president starts on Friday, when Congress returns from an end-of-year break to discuss Jair Bolsonaro’s ambitious pro-market reforms. Market participants are cautiously optimistic about big changes taking place in Latin America’s largest economy, with Brazilian stocks fast-becoming one of Wall Street’s favourite investment destinations. Shortly after his inauguration at the start of the year, Bolsonaro touted a “new Brazil” at th


The real business of governing for Brazil’s newly-elected populist president starts on Friday, when Congress returns from an end-of-year break to discuss Jair Bolsonaro’s ambitious pro-market reforms. Market participants are cautiously optimistic about big changes taking place in Latin America’s largest economy, with Brazilian stocks fast-becoming one of Wall Street’s favourite investment destinations. Shortly after his inauguration at the start of the year, Bolsonaro touted a “new Brazil” at th
Bolsonaro’s pro-market agenda faces its first test of confidence as Brazil’s Congress returns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: sam meredith, evaristo sa, afp, getty images
Keywords: news, cnbc, companies, test, wood, unpopular, brazil, world, confidence, wont, faces, unit, promarket, congress, returns, agenda, transform, touted, bolsonaros, brazils, wall, wef


Bolsonaro's pro-market agenda faces its first test of confidence as Brazil's Congress returns

The real business of governing for Brazil’s newly-elected populist president starts on Friday, when Congress returns from an end-of-year break to discuss Jair Bolsonaro’s ambitious pro-market reforms.

Market participants are cautiously optimistic about big changes taking place in Latin America’s largest economy, with Brazilian stocks fast-becoming one of Wall Street’s favourite investment destinations.

Shortly after his inauguration at the start of the year, Bolsonaro touted a “new Brazil” at the World Economic Forum (WEF) in Davos.

The far-right leader also promised to transform the country into one of the most business-friendly places in the world during his time in office.

“Provided he passes unpopular issues such as pensions reform during his honeymoon period, then other free-market measures won’t need as much backing,” Robert Wood, a Brazil analyst at the Economist Intelligence Unit, told CNBC via email on Friday.


Company: cnbc, Activity: cnbc, Date: 2019-02-01  Authors: sam meredith, evaristo sa, afp, getty images
Keywords: news, cnbc, companies, test, wood, unpopular, brazil, world, confidence, wont, faces, unit, promarket, congress, returns, agenda, transform, touted, bolsonaros, brazils, wall, wef


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Diageo CEO: Liquor trends have been unfazed by low consumer confidence

British distiller Diageo is dodging consumer confidence headwinds by taking advantage of trends in alcohol and drinking preferences, CEO Ivan Menezes told CNBC on Thursday. “We are benefiting from consumer trends where people are drinking better and want better brands and experiences,” he said in an interview with Sara Eisen of “Squawk on the Street.” Diageo, the world’s largest spirits company, reported 7.5 percent growth in global sales in its half-year earnings report. “It’s part of this tren


British distiller Diageo is dodging consumer confidence headwinds by taking advantage of trends in alcohol and drinking preferences, CEO Ivan Menezes told CNBC on Thursday. “We are benefiting from consumer trends where people are drinking better and want better brands and experiences,” he said in an interview with Sara Eisen of “Squawk on the Street.” Diageo, the world’s largest spirits company, reported 7.5 percent growth in global sales in its half-year earnings report. “It’s part of this tren
Diageo CEO: Liquor trends have been unfazed by low consumer confidence Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-31  Authors: tyler clifford
Keywords: news, cnbc, companies, unfazed, low, premium, trading, liquor, spirits, trend, trends, ceo, consumer, confidence, better, tequila, sales, brands, diageo


Diageo CEO: Liquor trends have been unfazed by low consumer confidence

British distiller Diageo is dodging consumer confidence headwinds by taking advantage of trends in alcohol and drinking preferences, CEO Ivan Menezes told CNBC on Thursday.

“We are benefiting from consumer trends where people are drinking better and want better brands and experiences,” he said in an interview with Sara Eisen of “Squawk on the Street.”

Diageo, the world’s largest spirits company, reported 7.5 percent growth in global sales in its half-year earnings report. Receipts of tequila brands, which make up 3 percent of Diageo’s net sales, spiked 29 percent, including double-digit growth in Don Julio and Casamigos labels in North America.

“It’s part of this trend of people wanting more premium brands and enjoying the quality that’s behind a Don Julio tequila,” Menezes said. “People are moving to spirits and cocktails in a bigger way from wine and beer, and people are trading up for more premium brands.”

The company also makes Smirnoff, Johnnie Walker, and Captain Morgan labels.

As the partial shutdown of the U.S. government dragged through most of January, consumer confidence hit a 1½-year low while markets worried about the outlook of 2019.

Menezes said the spirits industry is not immune to global economic and spending declines, but they’re “better positioned” to weather the storm by following trends. Furthermore, sales grew 20 percent in China with scotch brands.

“[It’s] hard to see a sustained shift yet, but … we’re watching it closely,” he said. “That trend is very strong and continues on a secular basis, so while there will be some impact from an economic slowdown, we’re not seeing it yet.”

Shares of Diageo are trading up more than 5 percent midday and reached year-over-year highs.


Company: cnbc, Activity: cnbc, Date: 2019-01-31  Authors: tyler clifford
Keywords: news, cnbc, companies, unfazed, low, premium, trading, liquor, spirits, trend, trends, ceo, consumer, confidence, better, tequila, sales, brands, diageo


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Bond King Jeffrey Gundlach says we just got ‘the most recessionary signal’ yet

In particular, the gap between current sentiment and future expectations has blown out wider, according to the Conference Board’s Consumer Confidence Index released Tuesday. While confidence in the broader confidence index remains strong, falling just slightly month over month, the Expectations Index tumbled from 97.7 to 87.3 from December. Such wide gaps have portended sharp declines in economic activity, as pointed out by several market observers, including DoubleLine Capital’s Jeffrey Gundlac


In particular, the gap between current sentiment and future expectations has blown out wider, according to the Conference Board’s Consumer Confidence Index released Tuesday. While confidence in the broader confidence index remains strong, falling just slightly month over month, the Expectations Index tumbled from 97.7 to 87.3 from December. Such wide gaps have portended sharp declines in economic activity, as pointed out by several market observers, including DoubleLine Capital’s Jeffrey Gundlac
Bond King Jeffrey Gundlach says we just got ‘the most recessionary signal’ yet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: jeff cox
Keywords: news, cnbc, companies, confidence, king, expectations, present, index, gundlach, signal, future, market, bond, consumer, recessionary, sentiment, month, history, jeffrey


Bond King Jeffrey Gundlach says we just got 'the most recessionary signal' yet

Drooping consumer sentiment is pointing the way to a substantial economic slowdown, if history is any guide.

In particular, the gap between current sentiment and future expectations has blown out wider, according to the Conference Board’s Consumer Confidence Index released Tuesday.

While confidence in the broader confidence index remains strong, falling just slightly month over month, the Expectations Index tumbled from 97.7 to 87.3 from December. Since October, the expectations reading has plunged 24 percent. Conversely, the Present Situation Index is at 169.6, a nudge lower from December’s reading.

Such wide gaps have portended sharp declines in economic activity, as pointed out by several market observers, including DoubleLine Capital’s Jeffrey Gundlach, the so-called Bond King.

“The most recessionary signal at present is consumer future expectations relative to current conditions. It’s one of the worst readings ever,” he said in a tweet.

The difference between the two readings has only been wider three times in the survey’s history going back to 1967, according to Bespoke Investment Group. Those came in January through March of 2001, the final month being the beginning of a recession.

Moreover, when the gap between the Present Situation and Expectations indexes has exceeded 50 — it is currently at 82.3 — “recessions weren’t far behind,” wrote Bespoke’s Paul Hickey.

The partial government shutdown, which ended this week, was the longest in history and likely dented sentiment.

“Shock events such as government shutdowns (i.e. 2013) tend to have sharp, but temporary, impacts on consumer confidence,” Lynn Franco, senior director of economic indicators at The Conference Board, said in a statement. “Thus, it appears that this month’s decline is more the result of a temporary shock than a precursor to a significant slowdown in the coming months.”

But Hickey said investors would be wise to watch what appears to be a fragile economy closely. He said such disparities in present and future sentiment are the last indicators of growth that is in its latter stages.

“The stock market decline in December followed by the government shutdown undoubtedly had a negative impact on consumer sentiment in January, so the big gap in sentiment towards the present and future doesn’t guarantee that the US economy is on the cusp of a recession, but it does serve as a reminder that the economy is a lot slower now than it was a year ago,” he said in a note. “Therefore, the cushion to absorb any further weakness has worn thinner.”

WATCH:’Bond King’ Jeffrey Gundlach says S&P 500 has already entered bear market


Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: jeff cox
Keywords: news, cnbc, companies, confidence, king, expectations, present, index, gundlach, signal, future, market, bond, consumer, recessionary, sentiment, month, history, jeffrey


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ECB’s Draghi warns that uncertainty is weighing on sentiment

“Over the past few months, incoming information has continued to be weaker than expected on account of softer external demand and some country and sector-specific factors,” Draghi told the European Parliament’s committee on economic affairs in Brussels. “The persistence of uncertainties in particular relating to geopolitical factors and the threat of protectionism is weighing on economic sentiment,” Draghi added. The problem is that the euro zone’s three biggest economies — Germany, France and


“Over the past few months, incoming information has continued to be weaker than expected on account of softer external demand and some country and sector-specific factors,” Draghi told the European Parliament’s committee on economic affairs in Brussels. “The persistence of uncertainties in particular relating to geopolitical factors and the threat of protectionism is weighing on economic sentiment,” Draghi added. The problem is that the euro zone’s three biggest economies — Germany, France and
ECB’s Draghi warns that uncertainty is weighing on sentiment Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-28  Authors: emmanuel dunand, afp, getty images
Keywords: news, cnbc, companies, warns, ecbs, economic, sentiment, zones, weighing, ecb, banks, draghi, uncertainty, confidence, support, policy, factors, european


ECB's Draghi warns that uncertainty is weighing on sentiment

The ECB left policy on hold last week but warned that the bloc’s growth dip may be bigger and longer than earlier feared, pointing to even more protracted policy normalisation and suggesting that the bank’s next step could be to provide more support, not less.

“Over the past few months, incoming information has continued to be weaker than expected on account of softer external demand and some country and sector-specific factors,” Draghi told the European Parliament’s committee on economic affairs in Brussels.

“The persistence of uncertainties in particular relating to geopolitical factors and the threat of protectionism is weighing on economic sentiment,” Draghi added.

The ECB has long guided for steady interest rates ‘through’ the summer but markets have already scaled back their expectations, pricing in a move only in mid-2020, well after Draghi leaves office in October.

The problem is that the euro zone’s three biggest economies — Germany, France and Italy — are barely growing. Even if this is down mostly to one off factors, the resulting drop in business confidence threatens to make the downturn self fulfilling.

“Significant monetary policy stimulus remains essential to support the further build-up of domestic price pressures and headline inflation developments over the medium term,” Draghi added. “The Governing Council stands ready to adjust all of its instruments, as appropriate”

To prop up confidence, it could offer banks another round of cheap, long-term loans to make sure they continue to lend to the real economy.

The next move could be to formally push out the date of its first rate hike, a more tricky move as it could tie the hand of the new president, who is likely to named only after European elections in late May.


Company: cnbc, Activity: cnbc, Date: 2019-01-28  Authors: emmanuel dunand, afp, getty images
Keywords: news, cnbc, companies, warns, ecbs, economic, sentiment, zones, weighing, ecb, banks, draghi, uncertainty, confidence, support, policy, factors, european


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JP Morgan asset chief warns that CEOs are getting set to cancel spending over shutdown

J.P. Morgan Asset & Wealth Management Chief Executive Mary Callahan Erdoes warned that U.S. CEO confidence will soon start to dip if the warring factions in Washington cannot resolve the latest government shutdown. President Donald Trump and Congress are locked in a showdown over funding for Trump’s proposed wall along the nation’s southern border with Mexico. Trump has refused to sign any bill that doesn’t include money for the barrier and the partial shutdown entered its 34th day Thursday. Spe


J.P. Morgan Asset & Wealth Management Chief Executive Mary Callahan Erdoes warned that U.S. CEO confidence will soon start to dip if the warring factions in Washington cannot resolve the latest government shutdown. President Donald Trump and Congress are locked in a showdown over funding for Trump’s proposed wall along the nation’s southern border with Mexico. Trump has refused to sign any bill that doesn’t include money for the barrier and the partial shutdown entered its 34th day Thursday. Spe
JP Morgan asset chief warns that CEOs are getting set to cancel spending over shutdown Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: david reid, david a grogan
Keywords: news, cnbc, companies, shutdown, cancel, trump, world, jp, set, chief, getting, start, erdoes, confidence, wont, going, soon, ceos, ceo, warns, morgan, spending


JP Morgan asset chief warns that CEOs are getting set to cancel spending over shutdown

J.P. Morgan Asset & Wealth Management Chief Executive Mary Callahan Erdoes warned that U.S. CEO confidence will soon start to dip if the warring factions in Washington cannot resolve the latest government shutdown.

President Donald Trump and Congress are locked in a showdown over funding for Trump’s proposed wall along the nation’s southern border with Mexico. Trump has refused to sign any bill that doesn’t include money for the barrier and the partial shutdown entered its 34th day Thursday.

Speaking on a CNBC-hosted panel at the World Economic Forum (WEF) in Davos, Erdoes said the shutdown was currently costing the U.S. about $1.5 billion a week in gross domestic product (GDP). She added that CEOs would soon start to cancel investments that had already been postponed.

“A lot of these just get delayed. Some won’t happen after a series of time and, for sure, CEO confidence of ‘am I going to build that new plant or am I going to think about that capital expenditure,’ those are going to start to weigh heavily on their minds,” she said.


Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: david reid, david a grogan
Keywords: news, cnbc, companies, shutdown, cancel, trump, world, jp, set, chief, getting, start, erdoes, confidence, wont, going, soon, ceos, ceo, warns, morgan, spending


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US oil and gas firms are ready to spend as confidence grows, survey says

The group, which acts as a technical advisor to the oil and gas sector, added that almost half of U.S. companies were preparing for “significant increases” in spending on projects over the coming months. “There are brighter prospects for activity and investment across the value chain this year and beyond,” DNV GL’s Americas Regional Manager Frank Ketelaars said in a press release. Global confidence in the outlook for the oil and gas sector for 2019 sits at 76 percent, more than a doubling from t


The group, which acts as a technical advisor to the oil and gas sector, added that almost half of U.S. companies were preparing for “significant increases” in spending on projects over the coming months. “There are brighter prospects for activity and investment across the value chain this year and beyond,” DNV GL’s Americas Regional Manager Frank Ketelaars said in a press release. Global confidence in the outlook for the oil and gas sector for 2019 sits at 76 percent, more than a doubling from t
US oil and gas firms are ready to spend as confidence grows, survey says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: david reid, andrew burton, getty images
Keywords: news, cnbc, companies, dnv, gas, gls, firms, projects, report, grows, survey, confidence, world, spend, oil, sector, executives, ready


US oil and gas firms are ready to spend as confidence grows, survey says

The group, which acts as a technical advisor to the oil and gas sector, added that almost half of U.S. companies were preparing for “significant increases” in spending on projects over the coming months.

“There are brighter prospects for activity and investment across the value chain this year and beyond,” DNV GL’s Americas Regional Manager Frank Ketelaars said in a press release.

Ketelaars added that expensive “Deepwater projects” could thrive thanks to reduced cost measures, while newer sources such as shale oil and liquefied natural gas (LNG) were also set to grow.

Possible barriers to growth of U.S. oil and gas were the lack of skilled workers at the industry’s disposal as the survey revealed that more than a third (37 percent) of U.S. executives expect to increase their company headcount in 2019.

That number was just 20 percent in the same survey last year.

Global confidence in the outlook for the oil and gas sector for 2019 sits at 76 percent, more than a doubling from the 32 percent recorded in 2017.

U.S. West Texas Intermediate (WTI) traded at around $76 a barrel last October but had slumped to around $42 by December. Meanwhile, in a similar slump, Brent crude has fallen almost 30 percent since climbing to a peak of $86.29 in early October last year.

The DNV GL’s report said that recent volatility hasn’t dented confidence around the world, suggesting that the sector was becoming more comfortable with fluctuating or lower energy prices.

Around seven of 10 executives from different regions said they expected to raise or maintain capital spend while staffing oil and gas positions around the world is also a growing concern with 37 percent of respondents expecting to grow their workforce.

DNV GL’s report is based on a global survey of 791 senior industry professionals. The research, conducted during late October and early November 2018, was carried out by teams from DNV GL, Longitude, and Kantar TNS.


Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: david reid, andrew burton, getty images
Keywords: news, cnbc, companies, dnv, gas, gls, firms, projects, report, grows, survey, confidence, world, spend, oil, sector, executives, ready


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‘We’re talking ourselves into uncertainty,’ EY chief warns

Aside from an ongoing political impasse in the U.S. and economic uncertainty over its trade relationships, the U.S. economy is not doing that badly, according to EY’s global chairman and CEO. “People are following the news feeds as to what’s going on in the core underlying economics right now. “So, I think what we’re doing is talking ourselves into uncertainty which is clearly out there from the geopolitical perspective, but from the economic perspective we’re still seeing very strong fundamenta


Aside from an ongoing political impasse in the U.S. and economic uncertainty over its trade relationships, the U.S. economy is not doing that badly, according to EY’s global chairman and CEO. “People are following the news feeds as to what’s going on in the core underlying economics right now. “So, I think what we’re doing is talking ourselves into uncertainty which is clearly out there from the geopolitical perspective, but from the economic perspective we’re still seeing very strong fundamenta
‘We’re talking ourselves into uncertainty,’ EY chief warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: holly ellyatt, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, ongoing, uncertainty, economy, seeing, warns, talking, chief, ey, world, economic, weinberger, confidence, business, global, growth


'We're talking ourselves into uncertainty,' EY chief warns

Aside from an ongoing political impasse in the U.S. and economic uncertainty over its trade relationships, the U.S. economy is not doing that badly, according to EY’s global chairman and CEO.

“We’ve gone from an excess of confidence (in the business world) to an excess of pessimism in my view because we are still seeing a very strong U.S. economy right now,” Mark Weinberger, EY Global Chairman and CEO told CNBC on Tuesday.

“People are following the news feeds as to what’s going on in the core underlying economics right now. We’re still seeing five quarters of double-digit growth in a row for profits and we’re still talking about a 2.5 percent-plus increase in GDP in the U.S. which, over the last 10 years, is one of the strongest,” he said, speaking to CNBC at the World Economic Forum in Davos.

“So, I think what we’re doing is talking ourselves into uncertainty which is clearly out there from the geopolitical perspective, but from the economic perspective we’re still seeing very strong fundamentals.”

Despite Weinberger’s optimism, there are widespread concerns among business leaders and investors over the global growth outlook. On Monday, the International Monetary Fund (IMF) downgraded its forecast for global growth in 2019, to 3.5 percent, citing ongoing trade tariffs between the U.S. and China and weakness in financial markets, among other reasons, for the lower forecasts.

Tumultuous domestic politics in the U.S., U.K. and within Europe are also dominating concerns. In particular, an ongoing partial government shutdown in the U.S., as President Trump and Democrats in Congress continue to argue over funding for a border wall, had damaged public confidence, Weinberger noted.

“The economic effects of (the U.S.) shutdown haven’t been terribly dramatic so far. But if it continues for weeks on end it will be, it’ll slow down … But I think the bigger issue is the lack of confidence that it will bring to the people in the U.S.,” he said.

Weinberger, who has acted as one of several business advisers to Trump in the past, said he would counsel him now to “get back to work with the Democrats and try and keep the economy in the good position that it’s been in.” Pro-growth policies had to be maintained, he added.

“The U.S. has been leading the world in growth and we need to have that, especially with China growing and so the government being closed won’t help that … We’ve really got to make sure that the policies continue to be pro-growth.”

He said a lack of faith in government was being seen in Europe too, with the public in the U.K., France and Italy all experiencing a crisis of confidence in their governments to various degrees.


Company: cnbc, Activity: cnbc, Date: 2019-01-22  Authors: holly ellyatt, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, ongoing, uncertainty, economy, seeing, warns, talking, chief, ey, world, economic, weinberger, confidence, business, global, growth


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