Trump says ‘devalued’ currencies put US at a disadvantage and the Fed doesn’t have a ‘clue’

President Donald Trump, left, and Jerome Powell, the new chairman of the Federal Reserve on Thursday, Nov. 2, 2017. President Donald Trump said Tuesday that the U.S. dollar is at a disadvantage compared with other major currencies like the euro as central banks keep interest rates low while the Federal Reserve’s rates are higher by comparison. “The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,” Trump tweeted, adding the Fed doesn’t have “a clu


President Donald Trump, left, and Jerome Powell, the new chairman of the Federal Reserve on Thursday, Nov. 2, 2017. President Donald Trump said Tuesday that the U.S. dollar is at a disadvantage compared with other major currencies like the euro as central banks keep interest rates low while the Federal Reserve’s rates are higher by comparison. “The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,” Trump tweeted, adding the Fed doesn’t have “a clu
Trump says ‘devalued’ currencies put US at a disadvantage and the Fed doesn’t have a ‘clue’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: fred imbert
Keywords: news, cnbc, companies, trump, federal, rates, donald, clue, low, disadvantage, euro, dollar, doesnt, currencies, devalued, fed


Trump says 'devalued' currencies put US at a disadvantage and the Fed doesn't have a 'clue'

President Donald Trump, left, and Jerome Powell, the new chairman of the Federal Reserve on Thursday, Nov. 2, 2017.

President Donald Trump said Tuesday that the U.S. dollar is at a disadvantage compared with other major currencies like the euro as central banks keep interest rates low while the Federal Reserve’s rates are higher by comparison.

“The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,” Trump tweeted, adding the Fed doesn’t have “a clue.”

Trump also said in a separate tweet that the U.S. has low inflation, calling it “a beautiful thing.”

The dollar fell slightly against the euro following Trump’s tweets.

Trump has repeatedly gone after the Fed for what he considers tight monetary policy. The Fed hiked rates four times in 2018.


Company: cnbc, Activity: cnbc, Date: 2019-06-11  Authors: fred imbert
Keywords: news, cnbc, companies, trump, federal, rates, donald, clue, low, disadvantage, euro, dollar, doesnt, currencies, devalued, fed


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Dollar near flat, heading for fourth straight month of gains

The dollar was little changed on Thursday, on track to post a fourth straight month of gains, as the trade stand-off between China and the United States prompted traders to put money into perceived safe currencies including the greenback. Safe-haven demand lifted the dollar to a 2-year high against a basket of currencies last week. Appetite for the greenback was somewhat curbed on Thursday as Wall Street stabilized following steep losses due to the trade worries and U.S. bond yields briefly rose


The dollar was little changed on Thursday, on track to post a fourth straight month of gains, as the trade stand-off between China and the United States prompted traders to put money into perceived safe currencies including the greenback. Safe-haven demand lifted the dollar to a 2-year high against a basket of currencies last week. Appetite for the greenback was somewhat curbed on Thursday as Wall Street stabilized following steep losses due to the trade worries and U.S. bond yields briefly rose
Dollar near flat, heading for fourth straight month of gains Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-30
Keywords: news, cnbc, companies, near, yen, greenback, currencies, dollar, euro, fourth, week, heading, worries, gains, straight, month, lower, flat, trade


Dollar near flat, heading for fourth straight month of gains

The dollar was little changed on Thursday, on track to post a fourth straight month of gains, as the trade stand-off between China and the United States prompted traders to put money into perceived safe currencies including the greenback.

Safe-haven demand lifted the dollar to a 2-year high against a basket of currencies last week. Appetite for the greenback was somewhat curbed on Thursday as Wall Street stabilized following steep losses due to the trade worries and U.S. bond yields briefly rose before resuming their recent fall.

The euro and sterling held above key support levels at $1.11 and $1.26, respectively, also restraining the greenback’s momentum, analysts said.

“With the U.S.-China trade situation, people don’t want to do anything until there’s a resolution,” Joseph Trevisani, senior analyst at FX Street, said of this week’s light volume and tight trading ranges.

In late U.S. trading, an index that tracks the dollar against six major currencies was down -0.01% at 98.151. It reached 98.371 a week ago, its strongest since May 2017.

The S&P 500 was down 0.08%, wiping out initial gains, while the benchmark 10-year U.S. Treasury note yield was 1.2 basis points lower at 2.224%, reversing an earlier rise.

The dollar index has increased 0.76% in May, putting it on track for four straight months of gains. Its strength has persisted even as traders have increased their bets on multiple rate cuts by the Federal Reserve.

The greenback will likely extend its monthly winning streak against the euro, which began in January. Signs of a sagging euro zone economy, together with worries about the rise of euro-sceptic political parties within EU member countries, have hurt the zone’s common currency.

The euro was up 0.04% at $1.1135, within striking distance of $1.11055 hit a week ago, which was a two-year low. The dollar has also remained resilient against the yen, despite the risk-averse environment.

The greenback was 0.05% lower at 109.535 yen, staying above a two-week low set on Wednesday. Analysts said the yen, a safe-haven currency backed by Japan’s status as the world’s biggest creditor nation, remained relatively weak because of domestic demand for dollars.

“As there’s persistent yen selling and dollar buying from Japanese investors when the rate approaches the 109.10 yen per dollar level, it’s not easy for the yen to rise above the 109 level,” said Yukio Ishizuki, senior currency strategist at Daiwa Securities.

Sterling was poised for the biggest monthly drop against the dollar in a year as the imminent departure of Theresa May as prime minister deepened fears about a chaotic exit for Britain from the European Union.

On Thursday, the pound was 0.13% lower at $1.261, while the euro was up 0.17% at 88.31 pence.


Company: cnbc, Activity: cnbc, Date: 2019-05-30
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US is considering duties on countries that undervalue their currencies

Robert Mueller wants to testify in private before Congress,…Special counsel Robert Mueller wants to talk to Congress about his investigation into the Trump campaign and Russian interference in the 2016 election, but he wants to do it… Politicsread more


Robert Mueller wants to testify in private before Congress,…Special counsel Robert Mueller wants to talk to Congress about his investigation into the Trump campaign and Russian interference in the 2016 election, but he wants to do it… Politicsread more
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Company: cnbc, Activity: cnbc, Date: 2019-05-24
Keywords: news, cnbc, companies, itpoliticsread, considering, trump, testify, duties, private, investigation, currencies, mueller, robert, wants, undervalue, talk, russian, countries


US is considering duties on countries that undervalue their currencies

Robert Mueller wants to testify in private before Congress,…

Special counsel Robert Mueller wants to talk to Congress about his investigation into the Trump campaign and Russian interference in the 2016 election, but he wants to do it…

Politics

read more


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Dollar index hovers at 23-month peak

Most major currencies held in tight ranges on light trading volume as Japan began its extended Golden Week holiday. “You have a lot of economic data later this week from around the world. An index that tracks the greenback against the euro, yen, sterling and three other currencies was down 0.16% at 97.85. The dollar index failed to move higher after data that showed U.S. consumer spending gaining 0.9% in March, marking its biggest monthly increase in more than 9-1/2 years. Since the Fed’s March


Most major currencies held in tight ranges on light trading volume as Japan began its extended Golden Week holiday. “You have a lot of economic data later this week from around the world. An index that tracks the greenback against the euro, yen, sterling and three other currencies was down 0.16% at 97.85. The dollar index failed to move higher after data that showed U.S. consumer spending gaining 0.9% in March, marking its biggest monthly increase in more than 9-1/2 years. Since the Fed’s March
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Company: cnbc, Activity: cnbc, Date: 2019-04-29
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Dollar index hovers at 23-month peak

The dollar was marginally lower against a basket of currencies on Monday, hovering near a 23-month high, as traders await more data to convince them whether to add to their bullish positions in the greenback.

Most major currencies held in tight ranges on light trading volume as Japan began its extended Golden Week holiday. China will observe its Labor Day holiday from Wednesday to Friday. A Federal Reserve policy meeting, Brexit negotiations and a raft of global data including U.S. payrolls could each be the trigger for big currency swings this week.

“You have a lot of economic data later this week from around the world. People are waiting to see if there is a lot of major shifts,” said Chuck Tomes, associate portfolio manager at Manulife Asset Management in Boston.

A swathe of manufacturing surveys from Europe and China are due later this week, along with a first reading on EU GDP.

The U.S. payrolls report on Friday is forecast to show a solid increase of 185,000 jobs in April, with unemployment at 3.8%.

An index that tracks the greenback against the euro, yen, sterling and three other currencies was down 0.16% at 97.85. Last week, it reached 98.330, the highest since May 2017.

The euro was 0.32% higher at $1.1184, while the dollar was up 0.12% at 111.71 yen. The dollar index failed to move higher after data that showed U.S. consumer spending gaining 0.9% in March, marking its biggest monthly increase in more than 9-1/2 years.

The core personal consumption expenditure price index, on the other hand, did not change in March, leaving its year-over-year increase at 1.6%, the smallest rise in 14 months.

Traders await clues on the Fed’s global economic outlook as the central bank’s policymaking board meets on Tuesday and Wednesday. Analysts do not anticipate any major changes from Fed officials who signaled last month they would not raise interest rates in 2019.

Since the Fed’s March meeting, U.S. economic data has shown the expansion has remained intact despite some slowing since late 2018.

Last Friday, the government said first-quarter gross domestic product grew at a 3.2% pace, but the figure was bolstered largely by a surge in inventories and exports. Speculators raised their long dollar positions to $37.21 billion last week, the highest level since December 2015, according to U.S. Commodity Futures Trading Commission data released late Friday.


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Cryptocurrencies are ‘clearly shaking the system,’ IMF’s Lagarde says

Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents. “I think the role of the disruptors and anything that is using distributed


Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents. “I think the role of the disruptors and anything that is using distributed
Cryptocurrencies are ‘clearly shaking the system,’ IMF’s Lagarde says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, financial, system, clearly, stability, warned, using, think, imfs, imf, shaking, lagarde, cryptocurrencies, currencies, technology


Cryptocurrencies are 'clearly shaking the system,' IMF's Lagarde says

Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund.

Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents.

“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system,” she said.

The IMF boss warned that such financial industry changes must be accompanied by regulation.

“We don’t want innovation that would shake the system so much that we would lose the stability that is needed,” she said.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, financial, system, clearly, stability, warned, using, think, imfs, imf, shaking, lagarde, cryptocurrencies, currencies, technology


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Cryptocurrencies are ‘clearly shaking the system,’ IMF’s Lagarde says

Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents. “I think the role of the disruptors and anything that is using distributed


Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund. Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents. “I think the role of the disruptors and anything that is using distributed
Cryptocurrencies are ‘clearly shaking the system,’ IMF’s Lagarde says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, financial, system, clearly, stability, warned, using, think, imfs, imf, shaking, lagarde, cryptocurrencies, currencies, technology


Cryptocurrencies are 'clearly shaking the system,' IMF's Lagarde says

Financial technologies such as digital currencies are “shaking” the banking system and must be monitored to maintain stability, according to the head of the International Monetary Fund.

Speaking to CNBC on Wednesday, IMF Managing Director Christine Lagarde pointed to the changing business models of commercial banks as evidence that innovations like cryptocurrencies are having a clear impact on financial sector incumbents.

“I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system,” she said.

The IMF boss warned that such financial industry changes must be accompanied by regulation.

“We don’t want innovation that would shake the system so much that we would lose the stability that is needed,” she said.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: elizabeth schulze
Keywords: news, cnbc, companies, financial, system, clearly, stability, warned, using, think, imfs, imf, shaking, lagarde, cryptocurrencies, currencies, technology


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Dollar slips on US-China trade hopes, Swedish crown sags

“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45. Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year. The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a


“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45. Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year. The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a
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Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: matt cardy i getty images
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Dollar slips on US-China trade hopes, Swedish crown sags

The dollar on Tuesday fell against a basket of other currencies as traders scaled back their safe-haven greenback holdings on optimism that a fresh round of talks between China and the United States would help resolve their trade conflict.

The dollar index hit a near two-month peak on Friday after last week’s set of negotiations in Beijing failed to result in a deal, although officials from both sides said the talks had produced progress on contentious issues.

“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. “The dollar should come under pressure as it loses some safe-haven appeal.”

The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45.

On Friday, it hit 97.368, which was the highest since Dec. 17. U.S. financial markets were closed on Monday for the Presidents Day holiday.

Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year.

Last week, the crown rose after Sweden’s central bank broke with growing caution among major monetary-policy makers, saying it would stick to its plan to raise rates in the second half of 2019.

The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a report showed inflation slowed in January.

Against the euro, it was headed for its biggest daily decline in more than 15 months. It touched 10.621, its weakest since September.

The euro appreciated against the dollar on trade optimism. It reversed earlier losses after data showed Italian industrial orders dropped 5.3 percent in December from a year earlier.

Euro zone bond yields, notably those of German bunds, fell amid the cloudy European economic outlook, weighing on the euro. When European Central Bank policymakers meet on March 7, they are expected to lower growth and inflation projections.

The euro was up 0.37 percent at $1.135, holding above a three-month low of $1.1234 set last week.

The single currency, however, fell against the British pound as data showed domestic workers’ salaries held at its fastest pace in a decade in late 2018.

The euro was 0.62 percent lower at 86.99 pence, while the pound was up 1.08 percent at $1.306. The sterling’s gains were limited ahead of British Prime Minister’s Theresa May’s meeting with the EU to find a way to get their Brexit deal through the UK parliament.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: matt cardy i getty images
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Asia markets: Australia banks, Japan markets, currencies in focus

Shares in Hong Kong, Japan and Australia saw gains on Monday. The Royal Commission which looked into misconduct in Australia’s financial sector released its final report on Monday, with 76 recommendations for practices across banking, insurance, and financial advice. “My message to the financial sector is that misconduct must end and the interests of consumers must now come first. Stocks stateside also gained as the U.S. government released strong jobs growth data that beat expectations. The 30-


Shares in Hong Kong, Japan and Australia saw gains on Monday. The Royal Commission which looked into misconduct in Australia’s financial sector released its final report on Monday, with 76 recommendations for practices across banking, insurance, and financial advice. “My message to the financial sector is that misconduct must end and the interests of consumers must now come first. Stocks stateside also gained as the U.S. government released strong jobs growth data that beat expectations. The 30-
Asia markets: Australia banks, Japan markets, currencies in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: eustance huang
Keywords: news, cnbc, companies, misconduct, asia, australia, sector, japan, shares, jobs, focus, close, banks, financial, markets, today, currencies, rose, closed, released


Asia markets: Australia banks, Japan markets, currencies in focus

Shares in Hong Kong, Japan and Australia saw gains on Monday.

Hong Kong’s Hang Seng index, which closed earlier at 12:00 p.m. HK/SIN today with the eve of the Lunar New Year holidays, edged up 0.21 percent to close at 27,990.21.

Over in Japan, the Nikkei 225 advanced 0.46 percent to close at 20,883.77 while the Topix rose 1.07 percent to finish its trading day at 1,581.33. Shares of tech giant Sony closed down 8.07 percent after the company cut its sales and operating revenue forecast for the fiscal year.

The ASX 200 in Australia gained 0.48 percent to close at 5,891.20, with the sectors mostly higher.

The Royal Commission which looked into misconduct in Australia’s financial sector released its final report on Monday, with 76 recommendations for practices across banking, insurance, and financial advice.

“My message to the financial sector is that misconduct must end and the interests of consumers must now come first. From today the sector must change, and change forever,” said Australian Treasurer Josh Frydenberg.

Stock markets in China and South Korea were closed on Monday due to holidays.

Stocks stateside also gained as the U.S. government released strong jobs growth data that beat expectations. The U.S. economy added 304,000 jobs in January, according to data released by the Bureau of Labor Statistics. Economists polled by Refinitiv expect the U.S. economy to have added 170,000 jobs in January.

The 30-stock Dow rose 64.22 points to 25,063.89, its sixth straight week of gains and its longest since November 2017. The S&P 500 closed 0.1 percent higher at 2,706.53, while the Nasdaq Composite declined 0.25 percent to 7,263.87.


Company: cnbc, Activity: cnbc, Date: 2019-02-04  Authors: eustance huang
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Bitcoin may only be a good hedge in a dystopia, JP Morgan says

But in the meantime, investors may want to look for other safe-haven bets, according to J.P. Morgan. Given cryptocurrencies’ sky-high returns and low correlation to traditional assets like equities and credit, bitcoin backers had cited it as an ideal way to diversify a traditional portfolio. But J.P. Morgan judges crypto as deficient for two reasons: The trouble of extrapolating past risk-return properties “of an emerging financial asset displaying bubble-like properties,” similar to technology


But in the meantime, investors may want to look for other safe-haven bets, according to J.P. Morgan. Given cryptocurrencies’ sky-high returns and low correlation to traditional assets like equities and credit, bitcoin backers had cited it as an ideal way to diversify a traditional portfolio. But J.P. Morgan judges crypto as deficient for two reasons: The trouble of extrapolating past risk-return properties “of an emerging financial asset displaying bubble-like properties,” similar to technology
Bitcoin may only be a good hedge in a dystopia, JP Morgan says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: kate rooney, jordan mansfield, getty images news, getty images
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Bitcoin may only be a good hedge in a dystopia, JP Morgan says

Bitcoin might come in handy for some type of dystopian future. But in the meantime, investors may want to look for other safe-haven bets, according to J.P. Morgan.

Barring an all-out loss of faith in all major currencies — the dollar, euro, yen and gold — the firm remains doubtful.

“We have long been skeptical of cryptocurrencies’ value in most environments other than a dystopian one characterized by a loss of faith in all major reserve assets,” J.P. Morgan managing director and analyst Jan Loeys wrote in a note to clients this week.

Given cryptocurrencies’ sky-high returns and low correlation to traditional assets like equities and credit, bitcoin backers had cited it as an ideal way to diversify a traditional portfolio.

But J.P. Morgan judges crypto as deficient for two reasons: The trouble of extrapolating past risk-return properties “of an emerging financial asset displaying bubble-like properties,” similar to technology stocks in the 1990s. The second was digital currencies’ inability to outperform during periods of equity market draw-downs, like the summer of 2015 and February 2018, “perhaps due to their own overvaluation.”

“Even in extreme scenarios such as a recession or financial crises, there are more liquid and less complicated instruments for transacting, investing and hedging, in part due to the scale afforded by fiat currencies’ legal tender status,” Loeys said.

As stocks struggled at certain points last year, so did bitcoin. The Dow plunged 1,500 in a single day in February, and bitcoin meanwhile dropped more than 9 percent. The world’s largest and best-known cryptocurrency is more than 80 percent off of its almost $20,000 high hit in December 2017. Year-over-year, bitcoin has lost about 70 percent of its value and was trading near $3,587 on Friday.

In the report, Loeys predicts bitcoin could tumble as low as $1,260 “if a bear market persists.” Its cost support likely sits around $2,400, according to the report.

While prices have plummeted in what some are calling “crypto winter” as an opportunity to buy cheap assets. While many initial coin offerings have flopped, cryptocurrency developers continue working on new use cases and M&A has remained strong. Still, J.P. Morgan isn’t convinced.

“Developments over the past year have not altered our reservations about these assets’ role in global portfolios, even if their novelty value can remain high indefinitely,” Loeys said.

J.P. Morgan’s CEO Jamie Dimon has been among the most vocal, well-know critics. The CEO has called it a “fraud” and warned investors that if they were “stupid enough to buy it” they would “pay the price one day.” When asked at the World Economic Forum in Davos if he took any satisfaction in being right about bitcoin plunging, Dimon told CNBC “didn’t take any.”

Still, Dimon advocated for its underlying technology, blockchain. But the research note this week outlines hurdles remaining hurdles to its mass adoption.

“Blockchain is unlikely to re-invent the global payments system, but instead can provide marginal improvements to various parts of the process,” Loeys said. “Progress has been made to move blockchain adoption beyond experimentation and use in payments, but development has been largely confined to use cases like smart contracts, record keeping and decentralized applications rather than an institutionalized approach.”


Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: kate rooney, jordan mansfield, getty images news, getty images
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Asia markets: China economic data, currencies in focus

Asia Pacific markets started the trading week with gains despite China reporting that its economy grew at the lowest official pace in 28 years. Fourth quarter GDP growth was 6.4 percent, which was also in line with expectations. While Beijing’s official GDP figures are seen as one of the crucial indicators of China’s economic health, many outside experts have expressed skepticism about the veracity of the numbers. “Falling producer prices and new export orders point to a slowdown in China’s grow


Asia Pacific markets started the trading week with gains despite China reporting that its economy grew at the lowest official pace in 28 years. Fourth quarter GDP growth was 6.4 percent, which was also in line with expectations. While Beijing’s official GDP figures are seen as one of the crucial indicators of China’s economic health, many outside experts have expressed skepticism about the veracity of the numbers. “Falling producer prices and new export orders point to a slowdown in China’s grow
Asia markets: China economic data, currencies in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: eustance huang
Keywords: news, cnbc, companies, official, chinas, data, focus, quarter, economic, gdp, gains, currencies, growth, president, china, markets, economy, asia, trade


Asia markets: China economic data, currencies in focus

Asia Pacific markets started the trading week with gains despite China reporting that its economy grew at the lowest official pace in 28 years.

The world’s second-largest economy grew 6.6 percent in 2018, which matched analysts’ expectations, and was lower than a revised 6.8 percent growth in 2017. Fourth quarter GDP growth was 6.4 percent, which was also in line with expectations.

“I think what we’re seeing actually in the fourth quarter is that while the economy is decelerating, we actually still have some of the supports,” Helen Zhu, head of China equities at Blackrock, told CNBC’s “Street Signs” on Monday. “For example, for most of the quarter, from the export front loading impact that we had probably before the Argentina G-20 (summit) when people’s expectations regarding trade became a little bit more optimistic.”

Chinese President Xi Jinping and U.S. President Donald Trump agreed to a 90-day pause in tariff escalation at the G-20 summit in Argentina late in 2018.

While Beijing’s official GDP figures are seen as one of the crucial indicators of China’s economic health, many outside experts have expressed skepticism about the veracity of the numbers.

Raymond Yeung, chief economist for Greater China at the Australia and New Zealand Banking Group, wrote in a note that China’s GDP numbers are “not an accurate gauge” of its economic growth. Still, he pointed out, the gap between the actual figures and the official targets usually shapes the government’s policy stance.

“Falling producer prices and new export orders point to a slowdown in China’s growth momentum,” Yeung added. “To celebrate the 70th anniversary of the founding of the People’s Republic of China in 2019, President Xi (Jinping) will still likely launch growth-supportive policies.”

The mainland Chinese markets, closely watched as a result of the ongoing U.S.-China trade fight, saw gains on the back of the data release. The Shanghai composite rose more than 0.5 percent to close at about 2,610.51 while the Shenzhen composite gained 0.607 percent to end its trading day at around 1,330.17. The Shenzhen component also advanced 0.592 percent to close at approximately 7,626.24.

Hong Kong’s Hang Seng index saw gains of more than 0.3 percent in late-afternoon trade.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: eustance huang
Keywords: news, cnbc, companies, official, chinas, data, focus, quarter, economic, gdp, gains, currencies, growth, president, china, markets, economy, asia, trade


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