Toys R Us built a kingdom and the world’s biggest toy store. Then, they lost it.

Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. In its heyday in th


Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. In its heyday in th
Toys R Us built a kingdom and the world’s biggest toy store. Then, they lost it. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-26  Authors: lauren hirsch, eduardo munoz, jacques m chenet, corbis, getty images, scott mlyn, peter foley, bloomberg, jason alden
Keywords: news, cnbc, companies, written, toy, biggest, toys, worlds, built, went, store, lost, stores, lazarus, world, week, kingdom, important


Toys R Us built a kingdom and the world's biggest toy store. Then, they lost it.

The toy emporium that Charles P. Lazarus envisioned has been reduced to dusty floors and empty shelves.

Much has been said about the demise of the toy empire, which this week announced its plan to liquidate. There have been fingers pointed at corporate raiders, Amazon and big-box stores. All contributed to its undoing.

Ultimately, though, Toys R Us’ collapse is a story of loyalty run dry. The store in its early days fostered devotion from customers and toymakers. In the end, it lost hold on both.

Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. It didn’t invest in its stores, even as it was adding to the fleet, leaving it vulnerable when new competition moved in.

The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. By 1978, he had created a toy superstore large enough to become a public company.

In its heyday in the 1980s and 1990s, it was the most important toy store in the country, if not the world. Its strength grew as competitors Kiddie City and Child World went out of business.


Company: cnbc, Activity: cnbc, Date: 2019-01-26  Authors: lauren hirsch, eduardo munoz, jacques m chenet, corbis, getty images, scott mlyn, peter foley, bloomberg, jason alden
Keywords: news, cnbc, companies, written, toy, biggest, toys, worlds, built, went, store, lost, stores, lazarus, world, week, kingdom, important


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Elon Musk’s extreme micromanagement has wasted time and money at Tesla, insiders say

Tesla will lose $6,000 for every $35,000 Model 3 it sells, says UBS analyst Colin Langan. Tesla has yet to produce the $35,000 base model of the Model 3. Tesla did meet the goal of producing more than 5,000 Model 3 vehicles in a week during the third quarter. But the company is nowhere near the 500,000 mark Musk promised in 2016. Tesla promised investors that it will achieve positive cash flow and profitability in the second half of 2018.


Tesla will lose $6,000 for every $35,000 Model 3 it sells, says UBS analyst Colin Langan. Tesla has yet to produce the $35,000 base model of the Model 3. Tesla did meet the goal of producing more than 5,000 Model 3 vehicles in a week during the third quarter. But the company is nowhere near the 500,000 mark Musk promised in 2016. Tesla promised investors that it will achieve positive cash flow and profitability in the second half of 2018.
Elon Musk’s extreme micromanagement has wasted time and money at Tesla, insiders say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: lora kolodny, j emilio flores, corbis, getty images, mason trinca, the washington post, jill silvestri, troy harvey, bloomberg, reuters
Keywords: news, cnbc, companies, tesla, style, musks, promised, vehicles, sells, teslas, investors, micromanagement, wasted, money, model, insiders, extreme, elon, say, musk, company


Elon Musk's extreme micromanagement has wasted time and money at Tesla, insiders say

Tesla’s future as a mass-market car company hinges on efficient, automated production of the Model 3. Tesla will lose $6,000 for every $35,000 Model 3 it sells, says UBS analyst Colin Langan. It only breaks even if the car sells for over $41,000. Tesla has yet to produce the $35,000 base model of the Model 3.

Tesla did meet the goal of producing more than 5,000 Model 3 vehicles in a week during the third quarter. It made 80,142 vehicles (including 53,239 Model 3’s), beating Wall Street analysts’ expectations. But the company is nowhere near the 500,000 mark Musk promised in 2016. As of the end of Q3, Tesla has produced 167,975 cars this year. To put that in context, Ford makes that many cars approximately every 10 days.

Tesla promised investors that it will achieve positive cash flow and profitability in the second half of 2018. But some investors and analysts are deeply skeptical this will happen. Tesla’s debts are quickly coming due: The company has to pay around $230 million in November, part of a larger $1.3 billion debt bill coming due in March 2019, according to AP.

Faith in the Tesla CEO is being tested like never before. Investors are wary of his social media and legal battles, attitude toward regulators and recreational drug use.

Many employees think Musk is essential to the company’s success. They praise his creativity, sense of humor and inspiring speeches. Some credit his hands-on management style with building a great company. A former Tesla and SpaceX employee, Spencer Gore, who is now the CEO of Impossible Aerospace, explained:

“Elon Musk is in a position most will never experience — trying to deliver an industry-defining product on a limited budget. He can’t afford to make decisions slowly, or even always compassionately. When he involves himself in low-level details it’s to enhance execution speed. For some engineers, this can be frustrating, at times heartbreaking — but Elon’s unconventional style is what built the Tesla we all chose to join.”

But other employees describe how Musk’s management style has increased costs and complexity in the factories.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: lora kolodny, j emilio flores, corbis, getty images, mason trinca, the washington post, jill silvestri, troy harvey, bloomberg, reuters
Keywords: news, cnbc, companies, tesla, style, musks, promised, vehicles, sells, teslas, investors, micromanagement, wasted, money, model, insiders, extreme, elon, say, musk, company


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Tesla VP of manufacturing Gilbert Passin has left

Tesla’s vice president of manufacturing Gilbert Passin has left the company, according to people familiar with personnel matters there. Manufacturing at Tesla is led by President of Automotive, Jerome Guillen, who was promoted to that role in September. One person said that Passin left months ago. He held multiple roles during his 9-year tenure at Tesla, and was not in charge of all manufacturing in the Fremont, California, factory. Apple attracted a significant numbers of engineers and supply c


Tesla’s vice president of manufacturing Gilbert Passin has left the company, according to people familiar with personnel matters there. Manufacturing at Tesla is led by President of Automotive, Jerome Guillen, who was promoted to that role in September. One person said that Passin left months ago. He held multiple roles during his 9-year tenure at Tesla, and was not in charge of all manufacturing in the Fremont, California, factory. Apple attracted a significant numbers of engineers and supply c
Tesla VP of manufacturing Gilbert Passin has left Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: lora kolodny, david butow, corbis, getty images
Keywords: news, cnbc, companies, officer, company, teslas, vp, months, vice, personnel, production, passin, tesla, manufacturing, gilbert, president, left


Tesla VP of manufacturing Gilbert Passin has left

Tesla’s vice president of manufacturing Gilbert Passin has left the company, according to people familiar with personnel matters there. Business Insider previously reported on Passin’s departure.

Manufacturing at Tesla is led by President of Automotive, Jerome Guillen, who was promoted to that role in September.

One person said that Passin left months ago. He held multiple roles during his 9-year tenure at Tesla, and was not in charge of all manufacturing in the Fremont, California, factory.

A Tesla spokesperson declined to offer further details and said in an e-mail: “We’re not confirming, denying, or commenting on personnel matters.” Passin could not be reached for comment.

Tesla has endured a string of departures in the past 12 months. Apple attracted a significant numbers of engineers and supply chain experts from its ranks, including Tesla’s former senior vice president of engineering Doug Field.

Among others, Chief Accounting Officer Dave Morton resigned from Tesla after about a month on the job there, while Chief People Officer Gaby Toledano said she would not return after an extended leave.

The company has been dealing with Model 3 production challenges, swinging stock prices and the erratic conduct of CEO Elon Musk. However, the company made its most recent production goals for Q3, building 80,142 total vehicles, including 53,239 Model 3 sedans, the company revealed earlier this month.


Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: lora kolodny, david butow, corbis, getty images
Keywords: news, cnbc, companies, officer, company, teslas, vp, months, vice, personnel, production, passin, tesla, manufacturing, gilbert, president, left


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Scottish Power goes green, set to produce electricity from wind power

Scottish Power has become the first integrated energy business in the U.K. to move away from coal and gas generation to wind power, the company said Tuesday. Over the last 10 years, Scottish Power has closed all its coal plants. The sale of its remaining gas and hydro stations means that it now produces 100 percent of its electricity from wind power. As of now, Scottish Power has 2,700 MW of wind power capacity operating or under construction in the U.K. “This is a pivotal shift for Scottish Pow


Scottish Power has become the first integrated energy business in the U.K. to move away from coal and gas generation to wind power, the company said Tuesday. Over the last 10 years, Scottish Power has closed all its coal plants. The sale of its remaining gas and hydro stations means that it now produces 100 percent of its electricity from wind power. As of now, Scottish Power has 2,700 MW of wind power capacity operating or under construction in the U.K. “This is a pivotal shift for Scottish Pow
Scottish Power goes green, set to produce electricity from wind power Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-16  Authors: anmar frangoul, paul taylor, corbis, getty images
Keywords: news, cnbc, companies, generation, wind, business, coal, gas, set, power, scottish, electricity, produce, goes, uk, energy, statement, green


Scottish Power goes green, set to produce electricity from wind power

Scottish Power has become the first integrated energy business in the U.K. to move away from coal and gas generation to wind power, the company said Tuesday.

The announcement comes after the firm, part of the Iberdrola Group, said it had sold its “traditional generation business” to Drax Smart Generation, a subsidiary of the Drax Group, for £702 million ($926.3 million).

Over the last 10 years, Scottish Power has closed all its coal plants. The sale of its remaining gas and hydro stations means that it now produces 100 percent of its electricity from wind power.

As of now, Scottish Power has 2,700 MW of wind power capacity operating or under construction in the U.K. The business is investing £5.2 billion up to 2022, focusing on renewable energy, enhanced grid networks and smart technology for its customers.

“This is a pivotal shift for Scottish Power as we realize a long-term ambition,” the company’s chief executive, Keith Anderson, said in a statement Tuesday.

“We are leaving carbon generation behind for a renewable future powered by cheaper green energy,” Anderson added. “We have closed coal, sold gas and built enough wind to power 1.2 million homes.”

The news was welcomed by environmental groups. “This is a hugely welcome move from Scottish Power and another clear signal that the clean energy transition is accelerating,” Sam Gardner, acting director at WWF Scotland, said in a statement Tuesday.

“Too often people talk about renewables being the future but this just shows how critical a role they already play in the here and now – cutting emissions, creating jobs and keeping our lights on.”


Company: cnbc, Activity: cnbc, Date: 2018-10-16  Authors: anmar frangoul, paul taylor, corbis, getty images
Keywords: news, cnbc, companies, generation, wind, business, coal, gas, set, power, scottish, electricity, produce, goes, uk, energy, statement, green


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Netflix price target slashed by Goldman Sachs and Raymond James ahead of earnings Tuesday

Goldman Sachs and Raymond James have slashed their 12-month forecasts for Netflix on concern that rising interest rates will eat away at the valuation of the high-flying internet company, which reports earnings Tuesday after the bell. Goldman on Monday laid out a bullish case for the upcoming Netflix quarterly earnings but still lowered its “12-month price target from $470 to $430 to reflect the contraction in broader internet multiples.” Netflix shares fell 6.1 percent last week amid a broader


Goldman Sachs and Raymond James have slashed their 12-month forecasts for Netflix on concern that rising interest rates will eat away at the valuation of the high-flying internet company, which reports earnings Tuesday after the bell. Goldman on Monday laid out a bullish case for the upcoming Netflix quarterly earnings but still lowered its “12-month price target from $470 to $430 to reflect the contraction in broader internet multiples.” Netflix shares fell 6.1 percent last week amid a broader
Netflix price target slashed by Goldman Sachs and Raymond James ahead of earnings Tuesday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-15  Authors: michael sheetz, joan cros garcia, corbis, getty images
Keywords: news, cnbc, companies, rates, target, slashed, earnings, interest, share, upside, goldman, ahead, raymond, netflix, sachs, james, rising, price, stock


Netflix price target slashed by Goldman Sachs and Raymond James ahead of earnings Tuesday

Goldman Sachs and Raymond James have slashed their 12-month forecasts for Netflix on concern that rising interest rates will eat away at the valuation of the high-flying internet company, which reports earnings Tuesday after the bell.

Goldman on Monday laid out a bullish case for the upcoming Netflix quarterly earnings but still lowered its “12-month price target from $470 to $430 to reflect the contraction in broader internet multiples.”

“While broader market performance and rising rates concerns have been more important factors for stock price performance, we believe that upside to consensus expectations and what the strength in subscriber net additions says about Netflix’s business, beyond just guidance for the next quarter, is likely to be a positive catalyst for the stock,” Goldman’s Heath Terry said in a note to clients.

Raymond James also lowered its expectation for Netflix stock to $400 a share from $445 a share, saying the streaming company’s growth will slow as interest rates continue to rise.

Netflix shares fell 6.1 percent last week amid a broader market sell-off from concerns over rising interest rates, escalating trade tensions and tighter monetary policy. The stock fell 0.5 percent in premarket trading Monday from its previous close of $339.56 a share.

“We have lowered our target price by 10% to $400 to reflect a rising interest rate environment,” Raymond James analyst Justin Patterson said in a note Monday.

Patterson said Raymond James remains “bullish” on Netflix “as upside drivers to revenue remain large” and “negative catalysts,” such as the competitive threat of other streaming services, “appear low.”

Citigroup on Friday called for investors to buy the dip, saying the stock’s tumble last week represents an entry point.

“We view the recent sell-off as an opportunity to own a high-quality, recurring revenue franchise with attractive upside potential,” Citi said.

Citi has a $375 a share price target on Netflix.


Company: cnbc, Activity: cnbc, Date: 2018-10-15  Authors: michael sheetz, joan cros garcia, corbis, getty images
Keywords: news, cnbc, companies, rates, target, slashed, earnings, interest, share, upside, goldman, ahead, raymond, netflix, sachs, james, rising, price, stock


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Oculus co-founder Luckey says, ‘It wasn’t my choice to leave’ Facebook

Palmer Luckey’s exit from Facebook was not of his own choosing, the Oculus co-founder said on Wednesday. “I can’t talk about it too much, but I’ll say that it wasn’t my choice to leave,” Luckey told CNBC’s Andrew Ross Sorkin at Vanity Fair’s New Establishment Summit in Los Angeles. Facebook acquired Oculus, which makes virtual-reality headsets, for $2 billion in 2014, when the start-up was just two years old. Luckey left Facebook in 2016 amid controversy surrounding his political contributions a


Palmer Luckey’s exit from Facebook was not of his own choosing, the Oculus co-founder said on Wednesday. “I can’t talk about it too much, but I’ll say that it wasn’t my choice to leave,” Luckey told CNBC’s Andrew Ross Sorkin at Vanity Fair’s New Establishment Summit in Los Angeles. Facebook acquired Oculus, which makes virtual-reality headsets, for $2 billion in 2014, when the start-up was just two years old. Luckey left Facebook in 2016 amid controversy surrounding his political contributions a
Oculus co-founder Luckey says, ‘It wasn’t my choice to leave’ Facebook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: salvador rodriguez, ramin talaie, corbis, getty images
Keywords: news, cnbc, companies, work, wasnt, facebook, luckey, cofounder, theres, vr, told, leave, whatsapp, oculus, choice


Oculus co-founder Luckey says, 'It wasn't my choice to leave' Facebook

Palmer Luckey’s exit from Facebook was not of his own choosing, the Oculus co-founder said on Wednesday.

“I can’t talk about it too much, but I’ll say that it wasn’t my choice to leave,” Luckey told CNBC’s Andrew Ross Sorkin at Vanity Fair’s New Establishment Summit in Los Angeles.

Facebook acquired Oculus, which makes virtual-reality headsets, for $2 billion in 2014, when the start-up was just two years old. Luckey left Facebook in 2016 amid controversy surrounding his political contributions and financial support of far-right groups and internet trolls.

“Selling Oculus to Facebook was the best thing that ever happened to the VR industry even if it wasn’t super great for me,” he said.

Luckey’s comments come at a sensitive time for Facebook. In addition to the controversies surrounding abuse of Facebook’s platform before and after the 2016 presidential election, the company has been rocked by other high-profile departures, most notably Instagram co-founders Kevin Systrom and Mike Krieger as well as WhatsApp co-founder Jan Koum earlier this year.

Brian Acton, the other co-founder of WhatsApp, told Forbes last month that he left $850 million on the table by exiting Facebook last year, a decision he said he made after clashing with Mark Zuckerberg over plans to monetize the messaging service.

“I think there’s a lot of people at Facebook who have been leaving that were very happy to work at Facebook in 2012 that don’t want to work at Facebook in 2018,” Luckey said. “There’s a big difference between those two things.”

On the product side, Oculus has been slow to develop for Facebook. The company recently announced the Oculus Quest, its most promising portable VR headset, but there’s still plenty of skepticism about whether it will ever be a mainstream technology.


Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: salvador rodriguez, ramin talaie, corbis, getty images
Keywords: news, cnbc, companies, work, wasnt, facebook, luckey, cofounder, theres, vr, told, leave, whatsapp, oculus, choice


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The last time rates soared like this, the stock market plunged double-digits

When the 10-year Treasury note yield broke above resistance in late January, the stock market sharply corrected, Miller Tabak equity analyst Matt Maley said in a note to clients Thursday. Some market watchers are turning to sectors that typically benefit from rising rates, like the financials. “This is definitely a shot of adrenaline for the banks, especially regional banks,” Mark Tepper, president and CEO of Strategic Wealth Partners, said Thursday on “Trading Nation.” Tepper is particularly bu


When the 10-year Treasury note yield broke above resistance in late January, the stock market sharply corrected, Miller Tabak equity analyst Matt Maley said in a note to clients Thursday. Some market watchers are turning to sectors that typically benefit from rising rates, like the financials. “This is definitely a shot of adrenaline for the banks, especially regional banks,” Mark Tepper, president and CEO of Strategic Wealth Partners, said Thursday on “Trading Nation.” Tepper is particularly bu
The last time rates soared like this, the stock market plunged double-digits Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: rebecca ungarino, richard james mendoza, nurphoto, getty images, joan cros garcia, corbis, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, doubledigits, soared, note, plunged, multiyear, market, banks, bank, rates, regional, maley, yield, stock, thats


The last time rates soared like this, the stock market plunged double-digits

Interest rates are surging in the U.S. and around the world, sending shock waves through equity markets. The last time this kind of breakout in bond yields struck, U.S. stocks tumbled more than 10 percent.

When the 10-year Treasury note yield broke above resistance in late January, the stock market sharply corrected, Miller Tabak equity analyst Matt Maley said in a note to clients Thursday. Between the S&P 500’s high on Jan. 26 to the year-to-date low on Feb. 9, the market fell nearly 12 percent as the benchmark bond yield broke out to multiyear resistance around 2.6 percent.

After the kind of yield action this week, he wouldn’t be surprised if the market again gets “knocked off balance in a significant way.”

“We’re seeing a similar thing now, where the yield on the 10-year note is breaking strongly above 3.1 percent, which is a multiyear high. … People have been talking about how whenever we see these gradual rises in rates, it’s really not a problem, but when you do get these big spikes, like we got back in January, it does create disruption in the marketplace. That’s what we’re worried about right now,” Maley said Thursday on CNBC’s “Trading Nation.”

The market did erase its losses in early March, and the rally before the early 2018 downturn was more intense than the current environment, but Maley argues that even without a “spike” in equities, it can still prove vulnerable.

“I don’t think we’re going to have a major crash, but the recent all-time high was really only a slight one, and that’s a double-top. That’s exactly what we saw in 2007, and exactly what we saw in 2000 just before the markets rolled over. There are some similarities, there are some differences, but we just have to be a little bit worried,” he said.

The 10-year Treasury note yield rose to its highest level in seven years this week, while yields for shorter-dated notes surged to their own multiyear highs. Some market watchers are turning to sectors that typically benefit from rising rates, like the financials.

“This is definitely a shot of adrenaline for the banks, especially regional banks,” Mark Tepper, president and CEO of Strategic Wealth Partners, said Thursday on “Trading Nation.”

Tepper is optimistic on the banks due in part to increasingly less accommodative policy from the Federal Reserve and relatively strong U.S. economic data.

“All of these regional bank stocks have been on life support because the yield curve has continued to flatten throughout the year, and in order for these banks to boost their net interest margins, they need to see that curve steepen. We’re finally seeing that happen, which is going to be a tailwind for these bank earnings,” he said.

Tepper is particularly bullish on shares of Huntington Bancshares, a regional bank based in Columbus, Ohio. The stock has outperformed its regional bank peers in the last three months, rallying nearly 5 percent while the regional bank-tracking ETF has fallen 2 percent.


Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: rebecca ungarino, richard james mendoza, nurphoto, getty images, joan cros garcia, corbis, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, doubledigits, soared, note, plunged, multiyear, market, banks, bank, rates, regional, maley, yield, stock, thats


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Italian government announces ‘brave and responsible’ budget plan

Italy’s anti-establishment government has announced its new strategy to financial policy: a “brave and responsible” initiative, but the European Union and the markets are yet to accept it. Italy has put forward its final budget targets for the coming years on Thursday evening, ending weeks of speculation about its spending plans. The government cut growth forecasts and went ahead with higher spending, despite some backlash from European officials. “As stated on several occasions, the budget mano


Italy’s anti-establishment government has announced its new strategy to financial policy: a “brave and responsible” initiative, but the European Union and the markets are yet to accept it. Italy has put forward its final budget targets for the coming years on Thursday evening, ending weeks of speculation about its spending plans. The government cut growth forecasts and went ahead with higher spending, despite some backlash from European officials. “As stated on several occasions, the budget mano
Italian government announces ‘brave and responsible’ budget plan Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: silvia amaro, simona granati, corbis, corbis news, getty images
Keywords: news, cnbc, companies, announces, went, cut, brave, plan, european, 15, spending, italian, workers, growth, responsible, budget


Italian government announces 'brave and responsible' budget plan

Italy’s anti-establishment government has announced its new strategy to financial policy: a “brave and responsible” initiative, but the European Union and the markets are yet to accept it.

Italy has put forward its final budget targets for the coming years on Thursday evening, ending weeks of speculation about its spending plans. The government cut growth forecasts and went ahead with higher spending, despite some backlash from European officials. The populist cabinet made it clear however that the expenses would not only involve social measures but also with investments.

“As stated on several occasions, the budget manoeuvre that this Government is preparing to launch is brave and responsible, focusing on the growth and well-being of citizens,” the Italian finance minister Giovanni Tria said Thursday in a letter to the European Commission.

On Thursday, Rome cut this year’s growth forecast to 1.2 percent from a previous estimate of 1.5 percent. Due to planned “public and private investments, lower tax burden on small and medium-sized enterprises and self-employed workers”, the growth rate is expected to be 1.5 percent in 2019, followed by 1.6 percent in 2020 and 1.4 percent in 2021.


Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: silvia amaro, simona granati, corbis, corbis news, getty images
Keywords: news, cnbc, companies, announces, went, cut, brave, plan, european, 15, spending, italian, workers, growth, responsible, budget


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This ‘potentially lethal combination’ in market may unleash inflation

Yale University senior fellow Stephen Roach is worried the US-China trade war is putting sand in the gears of global supply chains, which has been playing a vital force in keeping price pressures in check. Roach referred to the threat as one of the “more destructive” layers of the trade war for stocks. He added: “For every point of slack in advanced economies, the value chains hold down overall inflation by about 9/10s of a point.” Roach, who served as Morgan Stanley Asia chairman for five years


Yale University senior fellow Stephen Roach is worried the US-China trade war is putting sand in the gears of global supply chains, which has been playing a vital force in keeping price pressures in check. Roach referred to the threat as one of the “more destructive” layers of the trade war for stocks. He added: “For every point of slack in advanced economies, the value chains hold down overall inflation by about 9/10s of a point.” Roach, who served as Morgan Stanley Asia chairman for five years
This ‘potentially lethal combination’ in market may unleash inflation Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: stephanie landsman, frederic j brown, afp, getty images, richard james mendoza, nurphoto, joan cros garcia, corbis, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, combination, lethal, supply, really, market, quickly, inflation, roach, war, trade, tensions, potentially, unleash, global, worlds


This 'potentially lethal combination' in market may unleash inflation

There’s a growing risk that trade tensions between the world’s two largest economies may converge with other factors to disrupt the global economy — and knock the historic U.S. stock market rally off its stride, according to one of the world’s leading authorities on Asia.

Yale University senior fellow Stephen Roach is worried the US-China trade war is putting sand in the gears of global supply chains, which has been playing a vital force in keeping price pressures in check. Roach referred to the threat as one of the “more destructive” layers of the trade war for stocks.

“You’ve got potentially a lethal combination between a hot labor market in an unwinding of the supply chain effects on the global front which could give you a surprising surge in inflation that the Fed is not positioned to really address with its still very, very low federal funds rate,” he warned Friday on CNBC’s “Trading Nation.”

He added: “For every point of slack in advanced economies, the value chains hold down overall inflation by about 9/10s of a point.”

Roach, who served as Morgan Stanley Asia chairman for five years, believes Wall Street and policy makers are largely underestimating the impact of the trade tensions. Despite the new deal to replace the North America Free Trade Agreement, Roach isn’t optimistic the U.S. is any closer to a resolution with China.

“The whole hope from the Trump administration is that China will be quickly beaten into submission as they did with supposedly Mexico and Canada,” said Roach. “The odds of a long disruption are high.”

His thoughts came as the 10-Year Treasury Note yield traded at levels not seen in seven years and on the heels of a strong monthly employment report. The Labor Department’s September numbers showed unemployment hit 3.7 percent — the lowest level since 1969.

“The world economy could really start to unwind and do so rather quickly,” said Roach. “This is no time for complacency.”


Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: stephanie landsman, frederic j brown, afp, getty images, richard james mendoza, nurphoto, joan cros garcia, corbis, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, combination, lethal, supply, really, market, quickly, inflation, roach, war, trade, tensions, potentially, unleash, global, worlds


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Netflix is down 15% from its high, and there could be more pain ahead

Netflix has fallen more than 15 percent from its recent high, and that has one former bull changing his tune on the stock. To illustrate this underperformance by Netflix, Gordon points out that while the Nasdaq 100-tracking ETF (QQQ) has hit new highs recently, the media company has failed to do so. This means that if Netflix closes below $370 on Oct. 16 expiration, then Gordon would make the $230 or so on the trade. But if Netflix were to close above $375 on Oct. 16 expiration, Gordon could los


Netflix has fallen more than 15 percent from its recent high, and that has one former bull changing his tune on the stock. To illustrate this underperformance by Netflix, Gordon points out that while the Nasdaq 100-tracking ETF (QQQ) has hit new highs recently, the media company has failed to do so. This means that if Netflix closes below $370 on Oct. 16 expiration, then Gordon would make the $230 or so on the trade. But if Netflix were to close above $375 on Oct. 16 expiration, Gordon could los
Netflix is down 15% from its high, and there could be more pain ahead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: annie pei, richard james mendoza, nurphoto, getty images, joan cros garcia, corbis, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, gordon, high, pain, 15, 230, oct, weakness, netflix, recent, earnings, 16, stock, ahead, nasdaq


Netflix is down 15% from its high, and there could be more pain ahead

Netflix has fallen more than 15 percent from its recent high, and that has one former bull changing his tune on the stock.

TradingAnalysis.com founder Todd Gordon had previously seen a breakout coming for the streaming giant into its earnings report later this month, but the trader is now reversing from his bullish call based on what he’s seeing in the charts.

“Netflix has been a weaker stock than the broader Nasdaq,” he said Thursday on CNBC’s “Trading Nation.” “The broader Nasdaq and the overall stock market is showing some signs of hesitation here in the face of these rising interest rates.”

To illustrate this underperformance by Netflix, Gordon points out that while the Nasdaq 100-tracking ETF (QQQ) has hit new highs recently, the media company has failed to do so. That, to Gordon, signals weakness in Netflix relative to the market.

And while Netflix has closed the gap from its July 16 earnings, Gordon points out that at around the $385 level, the stock reversed, which leads him to think that $385 is now resistance for it heading into earnings on Oct. 16.

As a result, Gordon wants to sell the October monthly 370-strike call and buy the October monthly 375-strike call for a credit of about $2.30, or $230 per options spread. This means that if Netflix closes below $370 on Oct. 16 expiration, then Gordon would make the $230 or so on the trade. But if Netflix were to close above $375 on Oct. 16 expiration, Gordon could lose about $275.

Despite recent weakness, Netflix is still up more than 80 percent year to date.


Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: annie pei, richard james mendoza, nurphoto, getty images, joan cros garcia, corbis, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, gordon, high, pain, 15, 230, oct, weakness, netflix, recent, earnings, 16, stock, ahead, nasdaq


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