Target shares tumble 9% as earnings miss mark, weighed down by higher costs

Sales at Target stores open for at least 12 months were up 5.1 percent, slightly short of expectations for growth of 5.2 percent. The company said digital sales rose 49 percent during the third quarter and contributed 1.9 percentage points to same-store sales growth. Target said its strongest sales gains during the quarter came from the toys, baby and beauty categories. But first, Target has to prove it can keep the momentum going through this holiday season. This holiday season, for example, Ta


Sales at Target stores open for at least 12 months were up 5.1 percent, slightly short of expectations for growth of 5.2 percent. The company said digital sales rose 49 percent during the third quarter and contributed 1.9 percentage points to same-store sales growth. Target said its strongest sales gains during the quarter came from the toys, baby and beauty categories. But first, Target has to prove it can keep the momentum going through this holiday season. This holiday season, for example, Ta
Target shares tumble 9% as earnings miss mark, weighed down by higher costs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: lauren thomas
Keywords: news, cnbc, companies, costs, weighed, higher, quarter, shares, tumble, earnings, sales, season, toys, market, growth, miss, stores, mark, holiday, target


Target shares tumble 9% as earnings miss mark, weighed down by higher costs

Sales at Target stores open for at least 12 months were up 5.1 percent, slightly short of expectations for growth of 5.2 percent. The company said digital sales rose 49 percent during the third quarter and contributed 1.9 percentage points to same-store sales growth. It said the number of transactions at its stores jumped 5.3 percent, while the average shopper’s ticket dropped 0.2 percent.

Target said its strongest sales gains during the quarter came from the toys, baby and beauty categories. Toy sales were up more than 20 percent from a year ago. The company has devoted more space in some stores to sell toys following the demise of Toys R Us.

But investors were still concerned about higher expenses eating into profits, despite the sales gains.

Target’s third-quarter gross margin rate fell to 28.7 percent from 29.6 percent a year ago, with the company attributing the decline to higher supply chain costs as it fulfills more online orders ahead of the holiday season. It also said it ordered more holiday-related inventory ahead of the fourth quarter, earlier than when it did last year. Target ended the quarter with inventories up nearly 18 percent.

CFO Cathy Smith said during a call with analysts that margins will continue to be pressured during the fourth quarter, though not to the extent they were during the third quarter.

“While digital channel sales continue to grow rapidly, we are benefiting from the healthy traffic and sales growth in our stores as well,” Cornell told analysts on a separate call Tuesday. “I will say that we are optimistic about our ability to deliver profitable growth next year and beyond.”

But first, Target has to prove it can keep the momentum going through this holiday season. The retailer said it expects its adjusted earnings per share for the fiscal year to fall within a range of $5.30 to $5.50. For the holiday quarter, it’s anticipating same-store sales will be up roughly 5 percent.

The retailer has been pouring money into store renovations, while opening up smaller-format locations in urban cities and college towns. It continues to add more in-house brands for apparel and home goods, which offer higher margins than national labels. And it’s investing in logistics to be more competitive with Walmart and Amazon. This holiday season, for example, Target is dropping its minimum purchase threshold for free, two-day shipping, while Walmart still has a $35 threshold.

Target also said Tuesday it has met its hiring goals for the holidays to bring on 120,000 seasonal workers. There’s been some concern, more broadly, that retailers won’t be able to meet these lofty hiring goals with such a tight labor market in the U.S.

As of Monday’s market close, Target shares have rallied more than 35 percent over the past 12 months, bringing its market cap to roughly $41.1 billion.

WATCH: Target is getting back to its ‘cheap chic’ roots


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: lauren thomas
Keywords: news, cnbc, companies, costs, weighed, higher, quarter, shares, tumble, earnings, sales, season, toys, market, growth, miss, stores, mark, holiday, target


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Russia lures buyers as S-400 missile system costs less than US models

WASHINGTON — The Russian S-400 missile system costs a fraction of rival platforms made by U.S. companies, one of the major reasons several countries are interested in dealing with the Kremlin despite the potential for blowback. Lockheed Martin makes the THAAD, or terminal high altitude area defense, system, while Raytheon makes the Patriot system. The S-400 system, the successor to the S-200 and S-300 missile systems, made its debut on the world stage in 2007. In terms of capability, one source


WASHINGTON — The Russian S-400 missile system costs a fraction of rival platforms made by U.S. companies, one of the major reasons several countries are interested in dealing with the Kremlin despite the potential for blowback. Lockheed Martin makes the THAAD, or terminal high altitude area defense, system, while Raytheon makes the Patriot system. The S-400 system, the successor to the S-200 and S-300 missile systems, made its debut on the world stage in 2007. In terms of capability, one source
Russia lures buyers as S-400 missile system costs less than US models Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: amanda macias, sefa karacan, anadolu agency, getty images
Keywords: news, cnbc, companies, missile, sanctions, russia, buyers, buying, thaad, lures, systems, costs, patriot, knowledge, system, models, s400, signed


Russia lures buyers as S-400 missile system costs less than US models

WASHINGTON — The Russian S-400 missile system costs a fraction of rival platforms made by U.S. companies, one of the major reasons several countries are interested in dealing with the Kremlin despite the potential for blowback.

Russia’s S-400, a mobile long-range surface-to-air missile system, costs approximately $500 million, whereas a Patriot Pac-2 battery costs $1 billion and a THAAD battery rings in at about $3 billion, according to people with first-hand knowledge of a U.S. intelligence assessment.

Lockheed Martin makes the THAAD, or terminal high altitude area defense, system, while Raytheon makes the Patriot system.

Nearly 13 countries have expressed interest in buying Russia’s S-400, a move that could trigger potential U.S. sanctions under the Countering America’s Adversaries Through Sanctions Act, which President Donald Trump signed in August 2017. In September, the U.S. slapped sanctions on China for buying fighter jets and missiles from Russia. However, the U.S. could grant sanction waivers.

Russian arms are generally considered less expensive than American weapons, in large part because they come without extensive maintenance support.

“When foreign militaries buy American, above and beyond the purchase, they are buying a partnership with the U.S. military,” Andrew Hunter, director of the Defense-Industrial Initiatives Group at the Center for Strategic and International Studies, told CNBC. “And that plus the maintenance and technical assistance is a big part of the cost difference.”

The Pentagon did not immediately respond to a request for comment for this article.

The S-400 system, the successor to the S-200 and S-300 missile systems, made its debut on the world stage in 2007. Compared with U.S. systems, the Russian-made S-400 is capable of engaging a wider array of targets, at longer ranges and against multiple threats simultaneously.

In terms of capability, one source noted that while there is no perfect weapon, the S-400 eclipses even THAAD, America’s missile defense crown jewel.

When asked why nations seek to buy the S-400 instead of America’s Patriot or THAAD systems, one of the people with knowledge of the intelligence report explained that foreign militaries aren’t willing to stick with the cumbersome process of buying weapons from the U.S. government.

“Many of these countries do not want to wait for U.S. regulatory hurdles,” said a source with first-hand knowledge of the assessment. “The S-400 has less export restrictions and the Kremlin is willing to expedite sales by skipping over any regulatory hurdles.”

China, India and Turkey have already signed purchase agreements with the Kremlin.

China, which is embroiled in a trade battle with the U.S., is in the middle of receiving its final shipment of the S-400 system. India, the top buyer of Russian arms, signed a deal with Moscow for the S-400 last month. Turkey, a NATO ally, is slated to receive its S-400 next year and is expected to have the system ready for use by 2020.

WATCH:Russia may have anti-satellite weapon that will be battle-ready by 2022


Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: amanda macias, sefa karacan, anadolu agency, getty images
Keywords: news, cnbc, companies, missile, sanctions, russia, buyers, buying, thaad, lures, systems, costs, patriot, knowledge, system, models, s400, signed


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Here’s how much Thanksgiving dinner for 8 costs at Acme, Aldi, Trader Joe’s, Walmart and Whole Foods

The American Farm Bureau Federation reported that the average 10-person Thanksgiving meal, including turkey, gravy, stuffing, sweet potatoes, rolls, peas, cranberry sauce, as well as a vegetable tray as an appetizer and pumpkin pie and coffee for dessert, cost $48.90. The final shopping list for Thanksgiving dinner came to 22 items and, for the purposes of my test, I assumed that I would already have on hand pantry staples like flour, oil, salt and pepper. I took that list to five popular grocer


The American Farm Bureau Federation reported that the average 10-person Thanksgiving meal, including turkey, gravy, stuffing, sweet potatoes, rolls, peas, cranberry sauce, as well as a vegetable tray as an appetizer and pumpkin pie and coffee for dessert, cost $48.90. The final shopping list for Thanksgiving dinner came to 22 items and, for the purposes of my test, I assumed that I would already have on hand pantry staples like flour, oil, salt and pepper. I took that list to five popular grocer
Here’s how much Thanksgiving dinner for 8 costs at Acme, Aldi, Trader Joe’s, Walmart and Whole Foods Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: megan leonhardt
Keywords: news, cnbc, companies, foods, joes, heres, thanksgiving, dinner, aldi, rolls, list, shopping, sauce, costs, stuffing, acme, potatoes, gravy, pie, walmart, trader, turkey


Here's how much Thanksgiving dinner for 8 costs at Acme, Aldi, Trader Joe's, Walmart and Whole Foods

The American Farm Bureau Federation reported that the average 10-person Thanksgiving meal, including turkey, gravy, stuffing, sweet potatoes, rolls, peas, cranberry sauce, as well as a vegetable tray as an appetizer and pumpkin pie and coffee for dessert, cost $48.90.

Since I live in the New York area, where food prices are higher than the national average, I decided to see whether I could do a made-from-scratch Thanksgiving dinner for just eight people for the same money. To keep things relatively consistent to the Farm Bureau, I opted for a menu of turkey, stuffing, mashed potatoes, gravy, green bean casserole, cranberry sauce and crescent rolls, as well as apple pie and coffee for dessert.

The final shopping list for Thanksgiving dinner came to 22 items and, for the purposes of my test, I assumed that I would already have on hand pantry staples like flour, oil, salt and pepper. I took that list to five popular grocery chains: Acme, Aldi, Trader Joe’s, Walmart and Whole Foods.

Here’s how I fared buying my ingredients while trying to keep to my budget at these stores. I’ve ranked them in order from the most to the least expensive shopping experience.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: megan leonhardt
Keywords: news, cnbc, companies, foods, joes, heres, thanksgiving, dinner, aldi, rolls, list, shopping, sauce, costs, stuffing, acme, potatoes, gravy, pie, walmart, trader, turkey


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10 states where Medicare Advantage will be the cheapest in 2019

That’s because the Silver State is home to the lowest Medicare Advantage costs for the 2019 plan year, according to an analysis by HealthMarkets Insurance Agency. The firm studied cost data from the Centers for Medicare & Medicaid Services. It consists of two parts: Part A covers care received in a hospital and Part B covers doctors’ services and medical supplies. Medicare Advantage or Part C, is a private plan that provides Part A and Part B benefits, and often prescription drug coverage as wel


That’s because the Silver State is home to the lowest Medicare Advantage costs for the 2019 plan year, according to an analysis by HealthMarkets Insurance Agency. The firm studied cost data from the Centers for Medicare & Medicaid Services. It consists of two parts: Part A covers care received in a hospital and Part B covers doctors’ services and medical supplies. Medicare Advantage or Part C, is a private plan that provides Part A and Part B benefits, and often prescription drug coverage as wel
10 states where Medicare Advantage will be the cheapest in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: darla mercado, simon webb, duncan nicholls, ojo images, getty images, sturti
Keywords: news, cnbc, companies, according, states, 2019, medicare, healthmarkets, wellsee, covers, costs, cheapest, advantage, plan, lowest


10 states where Medicare Advantage will be the cheapest in 2019

Come to Nevada for the roulette tables. Stay for the affordable retiree health insurance.

That’s because the Silver State is home to the lowest Medicare Advantage costs for the 2019 plan year, according to an analysis by HealthMarkets Insurance Agency. The firm studied cost data from the Centers for Medicare & Medicaid Services.

You might know “original Medicare.” It consists of two parts: Part A covers care received in a hospital and Part B covers doctors’ services and medical supplies.

Medicare Advantage or Part C, is a private plan that provides Part A and Part B benefits, and often prescription drug coverage as well.

See below for the top 10 states with the lowest Medicare Advantage annual costs, according to HealthMarkets.


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: darla mercado, simon webb, duncan nicholls, ojo images, getty images, sturti
Keywords: news, cnbc, companies, according, states, 2019, medicare, healthmarkets, wellsee, covers, costs, cheapest, advantage, plan, lowest


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Vodafone’s new CEO to cut costs, review tower assets

Vodafone’s new chief executive Nick Read said he would reduce operating costs by 1.2 billion euros ($1.35 billion) by 2021 and review its tower assets to drive higher returns at the world’s second largest mobile operator. “My new strategic priorities focus on … radically simplifying our operating model and generating better returns from our infrastructure assets,” Read said on Tuesday. Analysts have suggested the group could partner with a tower group operator to bring extra cash into the busi


Vodafone’s new chief executive Nick Read said he would reduce operating costs by 1.2 billion euros ($1.35 billion) by 2021 and review its tower assets to drive higher returns at the world’s second largest mobile operator. “My new strategic priorities focus on … radically simplifying our operating model and generating better returns from our infrastructure assets,” Read said on Tuesday. Analysts have suggested the group could partner with a tower group operator to bring extra cash into the busi
Vodafone’s new CEO to cut costs, review tower assets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: justin tallis, afp, getty images
Keywords: news, cnbc, companies, tower, returns, billion, operating, vodafones, cut, group, euros, read, towers, ceo, costs, assets, review, vodafone


Vodafone's new CEO to cut costs, review tower assets

Vodafone’s new chief executive Nick Read said he would reduce operating costs by 1.2 billion euros ($1.35 billion) by 2021 and review its tower assets to drive higher returns at the world’s second largest mobile operator.

Replacing Vittorio Colao at the top of the British company after the Italian ran the group for 10 years, Read said he would also freeze the dividend until the British company has reduced its debt pile.

“My new strategic priorities focus on … radically simplifying our operating model and generating better returns from our infrastructure assets,” Read said on Tuesday.

The initial market reaction was positive, with Vodafone shares trading 7 percent higher shortly after the market opened.

The shares had fallen 39 percent since the beginning of the year as investors fret about the cost of acquiring Liberty Global’s cable assets in Germany, the outlay on new spectrum for 5G services and tougher conditions in some European markets.

Read, the former Vodafone finance director who took over the top job last month, said he had taken decisive commercial and operational actions to respond to challenging conditions in Italy and Spain, and would reduce Vodafone’s costs for the third year running.

As part of a move to drive better returns from investments and to share capital assets where possible, it would create a “virtual tower” company to manage the 58,000 towers it controls across Europe, with a dedicated management team.

The group is also conducting due diligence on how best to own all of its towers, including those held in joint ventures.

Analysts have suggested the group could partner with a tower group operator to bring extra cash into the business. Any change in the ownership of its towers would mark the latest reinvention at Vodafone which is adapting to rampant consumer demand for mobile and fixed broadband services at a time of high competition in the industry.

Colao announced his departure in May a week after Vodafone clinched a long discussed deal to pay $21.8 billion to buy Liberty Global’s assets in Germany and eastern Europe. That should allow it to take the fight to rivals with a broader range of superfast cable TV, broadband and mobile services.

On Tuesday the group showed it was operating generally in line with forecasts.

It reported group service revenue of 19.7 billion euros and adjusted earnings of 7.08 billion euros, up 2.9 percent on an organic basis for the six months to end of September, broadly in line with market forecasts.

Vodafone also narrowed its growth target for organic adjusted core earnings to 3 percent from a previous range of 1-5 percent and said it now expected free cash flow before spectrum costs to be around 5.4 billion euros, above the previous target of 5.2 billion euros.

It had an operating loss of 2.1 billion euros, largely driven by impairments of 3.5 billion euros in Spain, Romania and the Vodafone Idea business.


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: justin tallis, afp, getty images
Keywords: news, cnbc, companies, tower, returns, billion, operating, vodafones, cut, group, euros, read, towers, ceo, costs, assets, review, vodafone


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HHS updates exercise guidelines, says few Americans follow them

Failing to meet the suggested levels of aerobic physical activity adds nearly $117 billion in annual health-care costs and contributes to 10 percent of all premature mortality, HHS said Monday in announcing its latest guidelines. Most of their time should be spent on aerobic activity but should also include muscle-strengthening and bone-strengthening activities at least three days a week. Physical activity leads to man immediate and long-term health benefits, the agency said in its updated guide


Failing to meet the suggested levels of aerobic physical activity adds nearly $117 billion in annual health-care costs and contributes to 10 percent of all premature mortality, HHS said Monday in announcing its latest guidelines. Most of their time should be spent on aerobic activity but should also include muscle-strengthening and bone-strengthening activities at least three days a week. Physical activity leads to man immediate and long-term health benefits, the agency said in its updated guide
HHS updates exercise guidelines, says few Americans follow them Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: angelica lavito, getty images
Keywords: news, cnbc, companies, health, adolescents, exercise, follow, guidelines, agency, physical, nearly, costs, aerobic, activity, according, americans, hhs, updates


HHS updates exercise guidelines, says few Americans follow them

Just a fraction of Americans are exercising as much as they’re supposed to, costing the health-care system billions of dollars and contributing to people dying early.

Only 26 percent of men, 19 percent of women and 20 percent of adolescents meet the U.S. Department of Health and Human Services’ exercise recommendations, according to the agency. Failing to meet the suggested levels of aerobic physical activity adds nearly $117 billion in annual health-care costs and contributes to 10 percent of all premature mortality, HHS said Monday in announcing its latest guidelines.

The data highlight the challenges of persuading Americans to become more active. Between 2015 and 2016, about 93.3 million U.S. adults — nearly 40 percent — were considered obese, as were nearly 1 in 5 children and adolescents ages 6 to 19, according to the Centers for Disease Control and Prevention.

Adults need 150 minutes of moderate to vigorous aerobic activity each week and two days of muscle strengthening activities to stay healthy, and children and adolescents ages 6 to 17 need 60 minutes of moderate to vigorous physical activity every day, HHS says. Most of their time should be spent on aerobic activity but should also include muscle-strengthening and bone-strengthening activities at least three days a week.

Physical activity leads to man immediate and long-term health benefits, the agency said in its updated guidelines.

One round of exercise can reduce anxiety and blood pressure, as well as leading to better sleep and improved insulin sensitivity, the agency said. In the long run, physical activity can improve brain health and reduce the risk for eight types of cancer, fall-related injuries in older adults and excessive weight gain, HHS added.

The agency first published activity guidelines in 2008 to help control the U.S. obesity epidemic. In 2008, the medical costs of obesity were estimated at $147 billion, with costs for people who were obese being $1,429 higher than people of normal weight, according to CDC.


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: angelica lavito, getty images
Keywords: news, cnbc, companies, health, adolescents, exercise, follow, guidelines, agency, physical, nearly, costs, aerobic, activity, according, americans, hhs, updates


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Tariffs are having a negative impact for only about 9 percent of companies, earnings calls show

Seven of the index’s 11 sectors saw a quarterly decline in the number of companies that used the term, while only two showed an increase. Most companies citing tariff issues have been saying they are offsetting them with higher prices or by shifting suppliers. In its so-called Beige Book report, which chronicles business conditions in the central bank’s 12 districts, the Fed mentioned “tariffs” 45 times. “Manufacturers reported raising prices of finished goods out of necessity as costs of raw ma


Seven of the index’s 11 sectors saw a quarterly decline in the number of companies that used the term, while only two showed an increase. Most companies citing tariff issues have been saying they are offsetting them with higher prices or by shifting suppliers. In its so-called Beige Book report, which chronicles business conditions in the central bank’s 12 districts, the Fed mentioned “tariffs” 45 times. “Manufacturers reported raising prices of finished goods out of necessity as costs of raw ma
Tariffs are having a negative impact for only about 9 percent of companies, earnings calls show Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: jeff cox, nicholas kamm, afp, getty images
Keywords: news, cnbc, companies, having, calls, quarter, report, costs, materials, sp, impact, reported, tariffs, prices, companies, negative, earnings


Tariffs are having a negative impact for only about 9 percent of companies, earnings calls show

S&P won’t go above 3,000 until we get more clarity on tariffs, says pro 9:33 AM ET Thu, 8 Nov 2018 | 02:50

Only about 9 percent of the companies in the index “noted a negative impact,” said Savita Subramanian, equity and quant strategist at Bank of American Merrill Lynch.

At a sector level, industrials most frequently mentioned the issue, followed by tech, consumer discretionary and materials. Seven of the index’s 11 sectors saw a quarterly decline in the number of companies that used the term, while only two showed an increase.

“The small decline in the number and percentage of companies discussing tariffs in the third quarter relative to the second quarter may be a sign that there is slightly less concern in corporate America about widespread impacts from the tariffs throughout the economy,” wrote John Butters, senior earnings analyst at FactSet.

Most companies citing tariff issues have been saying they are offsetting them with higher prices or by shifting suppliers.

The findings stand in contrast with a recent report from the Federal Reserve, which noted a high level of concern from its business contacts around the country.

In its so-called Beige Book report, which chronicles business conditions in the central bank’s 12 districts, the Fed mentioned “tariffs” 45 times.

“Manufacturers reported raising prices of finished goods out of necessity as costs of raw materials such as metals rose, which they attributed to tariffs,” the report said. “Construction contract prices increased to cover rising costs of labor and materials. Retailers and wholesalers in some Districts raised selling prices as they continued to see increased costs in transportation and also worried about impending cost increases resulting from tariffs.”

Wall Street is wrapping another strong earnings season overall, with 78 percent of companies beating estimates as 90 percent of the S&P has reported. The expected earnings growth is 25.2 percent, best in eight years. Some 61 percent beat on revenue.

WATCH:Twelve US execs explain how Trump’s trade war affects their bottom lines


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: jeff cox, nicholas kamm, afp, getty images
Keywords: news, cnbc, companies, having, calls, quarter, report, costs, materials, sp, impact, reported, tariffs, prices, companies, negative, earnings


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P&G CEO David Taylor worries trade war will destroy consumer confidence in American brands

Procter & Gamble CEO David Taylor worries about the long-term damage the global trade war will have on consumer behavior and spending. “What I worry most about with the trade war is it destroys consumers’ confidence in American brands,” Taylor told CNBC’s Sara Eisen in an interview that aired Friday on “Squawk on the Street.” “Higher costs from tariffs may also translate into higher prices, reduce P&G sales, and undermine American jobs in P&G U.S. operations,” P&G lobbyist Selina Jackson wrote.


Procter & Gamble CEO David Taylor worries about the long-term damage the global trade war will have on consumer behavior and spending. “What I worry most about with the trade war is it destroys consumers’ confidence in American brands,” Taylor told CNBC’s Sara Eisen in an interview that aired Friday on “Squawk on the Street.” “Higher costs from tariffs may also translate into higher prices, reduce P&G sales, and undermine American jobs in P&G U.S. operations,” P&G lobbyist Selina Jackson wrote.
P&G CEO David Taylor worries trade war will destroy consumer confidence in American brands Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: robert ferris, lauren hirsch, scott mlyn
Keywords: news, cnbc, companies, war, destroy, products, trade, ceo, global, tariffs, good, david, consumer, pg, costs, taylor, confidence, worries, company


P&G CEO David Taylor worries trade war will destroy consumer confidence in American brands

Procter & Gamble CEO David Taylor worries about the long-term damage the global trade war will have on consumer behavior and spending.

“What I worry most about with the trade war is it destroys consumers’ confidence in American brands,” Taylor told CNBC’s Sara Eisen in an interview that aired Friday on “Squawk on the Street.”

Rising commodity costs have already forced the company to hike prices on Pampers diapers, Bounty paper towels, Charmin toilet paper and Puffs tissues in recent months, and the trade war isn’t helping.

“It’s not good. I believe, and our company believes, in free and open trade. We think that raises all boats,” Taylor said. “It’d be good for the global economy, good for our country, good for China for a productive and constructive resolution of this.”

Still, Taylor noted he has not yet seen an impact on consumer confidence.

Procter & Gamble tends to manufacture close to its customer base, so its products intended for Chinese buyers are typically made in China and products for American buyers are mostly made in the United States. As such, Taylor noted P&G is impacted less than other global companies by trade ware threats.

The maker of everyday household goods, including Tide detergent and Crest toothpaste, said in early October that tariffs on products sent to Canada were hurting the company. P&G successfully obtained an exemption from paying steel tariffs on its Gillette and Venus brand razor blades after arguing against the levies in a letter to the U.S. Trade Representative.

“Higher costs from tariffs may also translate into higher prices, reduce P&G sales, and undermine American jobs in P&G U.S. operations,” P&G lobbyist Selina Jackson wrote.

Still, Taylor said the U.S. remains a primary focus for the company. He said that with innovation of its brands like Olay Whips cream-to-liquid moisturizer and Tide Pods detergent packets, he is confident Americans will continue to be willing to “pay a little more because they provide better value.”

That’s even as it sees competition from cheaper, store-owned brands.

Meantime, the sprawling consumer products company announced plans Thursday to simplify its operations.

The announcement came after activist investor Nelson Peltz joined the board in March following a vigorous proxy battle. Peltz had previously pushed for a simplified structure, saying it would improve accountability, agility and responsiveness to local needs.

Under the new business structure, the company will now have six sector business units organized by industry. Each business will have a unit “CEO” responsible for running all major decisions, like marketing, costs and supply chain.

“We did certainly consult with all 12 of our external board members. And we have a very active and engaged board…But certainly any good ideas we’ll take. I don’t care where they come,” said Taylor.

Shares of P&G have jumped by more than 29 percent since hitting a 52-week low of $70.73 a share in May, giving it a market value of $227.6 billion. They closed on Thursday at $91.36 a share and opened Friday’s session little changed.

WATCH:Twelve US execs explain how Trump’s trade war affects their bottom lines


Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: robert ferris, lauren hirsch, scott mlyn
Keywords: news, cnbc, companies, war, destroy, products, trade, ceo, global, tariffs, good, david, consumer, pg, costs, taylor, confidence, worries, company


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Health experts propose a red meat tax to recoup $172 billion in health care-costs

Hundreds of billions of dollars could be put toward health-care costs every year if a tax was applied to red and processed meat, Oxford University researchers said Wednesday. A new study from the U.K. university said introducing a health tax on such products would offset health-care costs and prevent more than 220,000 deaths a year globally. As well as offsetting health-care costs, researchers said their proposed tax could lead to a 16 percent decline in the global consumption of processed meat.


Hundreds of billions of dollars could be put toward health-care costs every year if a tax was applied to red and processed meat, Oxford University researchers said Wednesday. A new study from the U.K. university said introducing a health tax on such products would offset health-care costs and prevent more than 220,000 deaths a year globally. As well as offsetting health-care costs, researchers said their proposed tax could lead to a 16 percent decline in the global consumption of processed meat.
Health experts propose a red meat tax to recoup $172 billion in health care-costs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: chloe taylor, kryssia campos, getty images
Keywords: news, cnbc, companies, costs, study, consumption, global, health, propose, recoup, carecosts, tax, meat, 172, red, billion, processed, experts, healthcare


Health experts propose a red meat tax to recoup $172 billion in health care-costs

Hundreds of billions of dollars could be put toward health-care costs every year if a tax was applied to red and processed meat, Oxford University researchers said Wednesday.

A new study from the U.K. university said introducing a health tax on such products would offset health-care costs and prevent more than 220,000 deaths a year globally.

Looking into optimal taxation levels for red and processed meats in nearly 150 countries and regions, researchers concluded that in high-income countries, red meat prices would need to be increased by more than 20 percent, while processed meats would need to more than double in price.

At those levels, the tax would collect $172 billion per year globally, covering 70 percent of the health care costs associated with their consumption. To fully cover those costs, the tax would need to be doubled.

Researchers estimated that in 2020, 2.4 million global deaths will be attributable to the consumption of red and processed meat — as well as a $285 billion health-care bill.

According to the World Health Organization, beef, lamb and pork are carcinogenic when eaten in processed forms, and possibly still carcinogenic when consumed unprocessed. The organization also links them to coronary heart disease, strokes and type 2 diabetes.

As well as offsetting health-care costs, researchers said their proposed tax could lead to a 16 percent decline in the global consumption of processed meat. Reducing the consumption of processed meat would also have a positive effect on climate change by reducing global greenhouse gas emissions by over 100 million tons, it said.

Marco Springmann, who led the study, said an overconsumption of red and processed meat had a negative economic impact on many countries.

“I hope that governments will consider introducing a health levy on red and processed meat as part of a range of measures to make healthy and sustainable decision-making easier for consumers,” he said in a press release Wednesday.

“Nobody wants governments to tell people what they can and can’t eat. However, our findings make it clear that the consumption of red and processed meat has a cost, not just to people’s health and to the planet, but also to the health care systems and the economy.”

Researchers who worked on the study likened their proposed tax to levies on other products that damage consumers’ health, such as tobacco, alcohol and sugar. However, with different laws in different jurisdictions a global meat tax would prove very hard to implement.

In recent years, several nations and states have introduced taxes on sugary soft drinks in an attempt to curb burdens on health systems.

The U.K. introduced a tax on high-sugar soft drinks in 2016, while efforts are being made in California to push through a levy on sugary sodas. While the United Nations has explicitly encouraged the adoption of such taxes, the repealing of a sugar tax in Cook County, Illinois, last year could slow efforts in other cities.


Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: chloe taylor, kryssia campos, getty images
Keywords: news, cnbc, companies, costs, study, consumption, global, health, propose, recoup, carecosts, tax, meat, 172, red, billion, processed, experts, healthcare


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Health care topped the economy as the biggest issue for voters now, here’s why

Spending on medical care is the highest it has ever been. The United States spends 18.2 percent of gross domestic product on health care, up slightly from 2017, according to Statista. That amount has jumped more than 260 percent since 1960, when the U.S. spent 5 percent of GDP on health costs. The average life expectancy is nearly three years lower than other high-income countries, such as the United Kingdom, France and Australia. The U.S. also has lower rates of coverage than other high-income


Spending on medical care is the highest it has ever been. The United States spends 18.2 percent of gross domestic product on health care, up slightly from 2017, according to Statista. That amount has jumped more than 260 percent since 1960, when the U.S. spent 5 percent of GDP on health costs. The average life expectancy is nearly three years lower than other high-income countries, such as the United Kingdom, France and Australia. The U.S. also has lower rates of coverage than other high-income
Health care topped the economy as the biggest issue for voters now, here’s why Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: kate rooney, liz moyer
Keywords: news, cnbc, companies, voters, economy, care, states, costs, highincome, biggest, heres, medical, according, topped, issue, americans, countries, health, united


Health care topped the economy as the biggest issue for voters now, here's why

Spending on medical care is the highest it has ever been.

The United States spends 18.2 percent of gross domestic product on health care, up slightly from 2017, according to Statista. That amount has jumped more than 260 percent since 1960, when the U.S. spent 5 percent of GDP on health costs. In the past decade alone, the percentage of costs to GDP has risen roughly 10 percent.

Americans spend twice as much as any other high-income country in the world on medical care.

Yet utilization rates in the United States were largely similar to those in other nations, according to a recent academic paper published by the Journal of the American Medical Association. High prices for doctors and nurses, pharmaceuticals and administrative costs were major reasons for the disconnect in overall cost between the United States and other high-income countries, according to the research.

Even with the higher spending, Americans are certainly not healthier. Americans smoke less than other high-income countries but have a higher rate of obesity and infant mortality. The average life expectancy is nearly three years lower than other high-income countries, such as the United Kingdom, France and Australia.

The U.S. also has lower rates of coverage than other high-income countries. More than 90 percent of Americans have health care after the enactment of the Affordable Care Act, or ACA, but every other top 10 nation by comparison has at least 99 percent coverage for its population, according to the study.

Source: PwC Health Research Institute analysis of CMS national health expenditure data and Bureau of Economic Analysis data.


Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: kate rooney, liz moyer
Keywords: news, cnbc, companies, voters, economy, care, states, costs, highincome, biggest, heres, medical, according, topped, issue, americans, countries, health, united


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