China’s currency is sending a warning signal about the trade war

China’s currency has been an important barometer for progress in U.S.-Chinese trade talks, and right now it’s signaling that things aren’t going well. “Obviously, the trade shock we’re now discussing is a full blown trade war, so it’s obviously a very serious scenario. CNBC reported Friday that trade talks between the two countries appear to have stalled, and the next round of talks have not yet been scheduled. “They’ll do in a couple of ways, partly through intervention, partly through draining


China’s currency has been an important barometer for progress in U.S.-Chinese trade talks, and right now it’s signaling that things aren’t going well. “Obviously, the trade shock we’re now discussing is a full blown trade war, so it’s obviously a very serious scenario. CNBC reported Friday that trade talks between the two countries appear to have stalled, and the next round of talks have not yet been scheduled. “They’ll do in a couple of ways, partly through intervention, partly through draining
China’s currency is sending a warning signal about the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: patti domm
Keywords: news, cnbc, companies, chinas, market, currency, yuan, chinese, china, talks, signal, trade, officials, trump, sending, warning, nordvig, war


China's currency is sending a warning signal about the trade war

China’s currency has been an important barometer for progress in U.S.-Chinese trade talks, and right now it’s signaling that things aren’t going well.

The question is whether that signal is intentional, and whether Chinese officials will step in to prevent the yuan from reaching a key psychological low of 7 to the dollar. That level has become a line in the sand for markets around the world, and if broken, it could trigger a negative reaction in risk markets globally, as investors move to price in a bigger economic impact from a longer, more contentious trade war.

The yuan has been fairly stable this year, as the U.S. and China carried on trade talks. But since President Donald Trump tweeted about new tariffs May 5, the onshore yuan or CNY, has lost 2.7% against the U.S. dollar.

“Obviously, the trade shock we’re now discussing is a full blown trade war, so it’s obviously a very serious scenario. Then we have this negotiations period, where it could be averted and that doesn’t seem to be very good at all,” said Jens Nordvig, CEO of Exante Data. “It’s also unclear whether the Chinese officials want to fight hard to keep the currency stable. That’s a question mark that came in today.”

The onshore currency, or CNH, which trades in Hong Kong and is more impacted by international traders, hit a high of 6.945, while the onshore yuan, more controlled by the central bank, was just above 6.91 Friday. Nordvig said unlike other sessions, there was no sign Friday that the People’s Bank of China tried to stem the decline.

Also unclear was whether it was an intentional action, and Chinese officials were responding to trade tensions and the U.S. action this week blocking telecom firm Huawei from buying U.S. components.

CNBC reported Friday that trade talks between the two countries appear to have stalled, and the next round of talks have not yet been scheduled.

A weaker yuan has been a source of friction between China and the U.S. for years. Trump, in the past, had accused China of intentionally weakening its currency, hurting the U.S. as a result. If China does allow its currency to weaken, its exports would become more attractive, but strategists say Beijing would then worry about capital flight and it would probably not want to risk that.

“The market is testing the central bank’s resolve to defend the 7 lever,” said Marc Chandler, global market strategist at Bannockburn Global Forex. “They’ll do in a couple of ways, partly through intervention, partly through draining liquidity, raising the cost of being short the Chinese currency. They can do this in the domestic money market and in the domestic Hong Kong market.”

Nordvig said the message the yuan is sending is not like the positive comments about the trade talks that U.S. officials like Treasury Secretary Steve Mnuchin or White House top economist Larry Kudlow have made.

“It looks like they’re not even being invited to China. If there’s no talks ahead of Trump and [President Xi Jinping] meeting in Osaka, then the meeting becomes binary and very risky,” said Nordvig. Trump and Xi are expected to meet on the sidelines of the G-20 meeting June 28.

“It would be very different if Mnuchin makes some progress on some chapters here in the next couple of weeks. If that doesn’t happen we come close to the cliff,” said Nordvig, adding the question is whether Chinese officials are going to hold the currency up.”

Strategists say the yuan current weakness is due to a strengthening dollar and trade war concerns, which in turn are prodding Chinese authorities to consider more monetary and fiscal policy moves.

“It’s selling off on expectations of easier monetary policy and apparently no trade talks. China says we haven’t invited the U.S. back,” said Chandler, adding he expects the currency to challenge the 7 level soon.

“I think we’ll test it. We’ll test Chinese resolve. It will become more of a concern that it will be an inflection point if the CNY or CNH get to 7. It will have a ripple effect on the markets. It will be another source of instability. Another rubicon has been crossed,” he said.

Adam Cole, head of G-10 foreign exchange strategy at RBC, said reports that unnamed Chinese officials said the PBOC would not let the currency trade through 7 suggests that such a move won’t happen soon. But he said the yuan could breach those levels in the future.

“Longer term, with the dollar generally going up against everything, I think that constraint becomes nonbinding,” Cole said. He said the dollar’s rise has to do with monetary policy positioning, cyclicality and the fact that the U.S. economy looks stronger than the rest of the world.

China has been reducing its holdings of Treasurys, which some say could be a warning to the U.S. But Cole said he does not believe China, the largest holder of Treasurys, would bail out of the market in a big way.

“That’s an ongoing concern. Like most people,we think the risk of China going through a sudden liquidation and allocation out of Treasurys is unlikely. That would be a case of cutting off your nose to spite your face, given how much China has to lose,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: patti domm
Keywords: news, cnbc, companies, chinas, market, currency, yuan, chinese, china, talks, signal, trade, officials, trump, sending, warning, nordvig, war


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German data fails to lift euro from 1-week low

“The announcement of the increased trade tariffs has generated negative sentiment about global growth and that is exerting downward pressure on the euro despite the German data,” said Nikolay Markov, senior economist at Pictet Asset Management. “We expected the data to be worse than last month, but this is going to increase concerns about the state of the Chinese economy. The market will be very nervous and looking out for the PMI data,” said Commerzbank FX strategist Esther Maria Reichelt. The


“The announcement of the increased trade tariffs has generated negative sentiment about global growth and that is exerting downward pressure on the euro despite the German data,” said Nikolay Markov, senior economist at Pictet Asset Management. “We expected the data to be worse than last month, but this is going to increase concerns about the state of the Chinese economy. The market will be very nervous and looking out for the PMI data,” said Commerzbank FX strategist Esther Maria Reichelt. The
German data fails to lift euro from 1-week low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15
Keywords: news, cnbc, companies, beijing, german, 1week, aussie, trade, week, growth, low, fails, lift, currency, economy, data, chinese, euro


German data fails to lift euro from 1-week low

The euro held at a one-week low on Wednesday, ignoring data from Germany that showed the economy returned to growth in the first quarter, as trade tensions between the world’s two biggest economies cast a shadow over risk appetite.

The single currency has been caught in the cross-currents of an escalating dispute between Washington and Beijing since last week, unable to conclusively rise above the $1.1250 level.

“The announcement of the increased trade tariffs has generated negative sentiment about global growth and that is exerting downward pressure on the euro despite the German data,” said Nikolay Markov, senior economist at Pictet Asset Management.

U.S. President Donald Trump threatened higher tariffs on billions of dollars of Chinese imports last week, and Beijing responded with planned tariff hikes of its own on Monday.

The escalation in the trade dispute comes at a time when latest data from Germany showed the economy returned to growth in the March quarter as householders spent more freely and construction activity picked up.

The single currency was broadly steady at $1.1213 – just above a one-week low of $1.1197 hit in the Asian session and more than 3% below a 2019 high of nearly $1.16 in early January.

Germany’s economic figures were a sole bright indicator in an otherwise slate of dismal data.

China on Wednesday reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more stimulus as the trade war with the United States rumbles on.

“We expected the data to be worse than last month, but this is going to increase concerns about the state of the Chinese economy. The market will be very nervous and looking out for the PMI data,” said Commerzbank FX strategist Esther Maria Reichelt.

The Aussie dollar dropped as low as $0.6922, its lowest level since Jan. 3 when a flash crash in the foreign exchange markets rocked major currencies.

Barring that level, the currency was at its weakest in three years and down 0.2% on the day.

The weak data gave further impetus to Aussie bears to add to their negative bets with net outstanding short positions still below 2019 highs of above $5.2 billion.

The Aussie is often seen as a proxy for Chinese growth because of Australia’s export-reliant economy and China being the country’s main destination for its commodities.

Domestic data added to the woes, with the pace of growth in Australian wages stagnating.

Neighbouring New Zealand saw its currency dip 0.1% to $0.6567.

The Chinese yuan itself was slightly improved on the day at 6.8993 per U.S. dollar, but still close to a five-month low hit on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2019-05-15
Keywords: news, cnbc, companies, beijing, german, 1week, aussie, trade, week, growth, low, fails, lift, currency, economy, data, chinese, euro


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China is letting its currency decline in a ‘snub’ to Trump, ING says

China has started letting the yuan weaken slightly in a pointed “snub” to U.S. President Donald Trump, Dutch bank ING said in a report. Different U.S. administrations have long claimed China derives unfair export price advantages by keeping the yuan artificially weak, a charge Beijing denies. Still, the United States has refrained from officially labeling China a “currency manipulator.” ING said the yuan has been moving much more narrowly in the past two months as the People’s Bank of China, the


China has started letting the yuan weaken slightly in a pointed “snub” to U.S. President Donald Trump, Dutch bank ING said in a report. Different U.S. administrations have long claimed China derives unfair export price advantages by keeping the yuan artificially weak, a charge Beijing denies. Still, the United States has refrained from officially labeling China a “currency manipulator.” ING said the yuan has been moving much more narrowly in the past two months as the People’s Bank of China, the
China is letting its currency decline in a ‘snub’ to Trump, ING says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: kelly olsen
Keywords: news, cnbc, companies, weaken, letting, bank, currency, china, trump, chinese, snub, yuan, ing, weak, weakened, decline, months


China is letting its currency decline in a 'snub' to Trump, ING says

China has started letting the yuan weaken slightly in a pointed “snub” to U.S. President Donald Trump, Dutch bank ING said in a report.

Different U.S. administrations have long claimed China derives unfair export price advantages by keeping the yuan artificially weak, a charge Beijing denies. Still, the United States has refrained from officially labeling China a “currency manipulator.”

Though Chinese authorities have loosened controls over the years, the yuan is still tightly managed and allowed to trade within a narrow band of 2 percent either side of a daily fixed point.

ING said the yuan has been moving much more narrowly in the past two months as the People’s Bank of China, the central bank, has emphasized “stability” in currency policy.

But the Chinese currency, also known as the renminbi, weakened against the dollar by 0.2 percent in March, and by 0.3 percent so far in April, ING said on Monday in the report. That compares with the yuan strengthening by 2.45 percent in first two months of the year, it added.


Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: kelly olsen
Keywords: news, cnbc, companies, weaken, letting, bank, currency, china, trump, chinese, snub, yuan, ing, weak, weakened, decline, months


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Turkey’s lira takes another dive as central bank scares investors over interest rate plans

Turkey’s troubled lira fell to its lowest level since October on Thursday after its central bank scrapped a pledge to raise interest rates if needed. The Turkish central bank’s move has further shaken investor confidence in the country of 80 million, whose currency crash last year set off a run on emerging markets worldwide. Turkey’s Monetary Policy Committee’s statement on Thursday dropped its previous pledge that “if needed, further monetary tightening will be delivered.” Investors remain perp


Turkey’s troubled lira fell to its lowest level since October on Thursday after its central bank scrapped a pledge to raise interest rates if needed. The Turkish central bank’s move has further shaken investor confidence in the country of 80 million, whose currency crash last year set off a run on emerging markets worldwide. Turkey’s Monetary Policy Committee’s statement on Thursday dropped its previous pledge that “if needed, further monetary tightening will be delivered.” Investors remain perp
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Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: natasha turak, kerem uzel, bloomberg, getty images
Keywords: news, cnbc, companies, plans, interest, currency, markets, lira, scares, monetary, rate, foreign, turkeys, investors, inflation, turkish, takes, dive, bank, central, emerging


Turkey's lira takes another dive as central bank scares investors over interest rate plans

Turkey’s troubled lira fell to its lowest level since October on Thursday after its central bank scrapped a pledge to raise interest rates if needed.

The monetary tightening pause, now in its seventh month, is repelling investors already worried about double-digit inflation, unorthodox policy, political influence over the central bank’s independence, and dramatic yet unexplained moves in Turkey’s foreign currency reserves.

The lira was trading at 5.9502 to the dollar at 2:30 p.m. London time, and was down 1.5% at one point during the session. It is now down 7% on the greenback in the last month.

The Turkish central bank’s move has further shaken investor confidence in the country of 80 million, whose currency crash last year set off a run on emerging markets worldwide.

“No other way to say this, but pretty ridiculous move by the CBRT (Central Bank of the Republic of Turkey) … why on Earth would you do that when you are still in the market’s cross wires, you are losing FX (foreign exchange) reserves and the lira is un-anchored,” Timothy Ash, senior emerging markets strategist at Bluebay Asset Management, said in an emailed note.

“It’s like the CBRT has just made mistake, after mistake over the past couple of years.”

Turkey’s Monetary Policy Committee’s statement on Thursday dropped its previous pledge that “if needed, further monetary tightening will be delivered.” It said instead that its decisions “will be determined to keep inflation in line with the targeted path,” widely interpreted by investors as dovish.

The bank’s benchmark rate is currently 24%.

Turkey’s currency had lost 36% of its value against the dollar by the end of last year and the country fell into a recession amid mounting inflation, investor fears over Turkish President Recep Erdogan’s control over the central bank, diplomatic fights with the U.S. and a widening current account deficit.

Now, as Erdogan’s ruling AK Party reckons with bruising losses in local elections, in which it appears to have lost key cities that had long been under its control, many regional watchers worry that the government will double down on populist policies that seek to keep rates low, despite the official inflation rate at nearly 20%.

Analysts also warn of further pressure to the currency amid mounting tensions with the U.S. over a weapons purchase deal with Russia.

Investors remain perplexed over a lack of explanation from the government for rapid drops in foreign reserves and reports that the central bank is borrowing in order to bolster them.

The lira has been ranked by analysts as the worst-performing emerging markets currency this month. Ratings agency Moody’s expects the Turkish economy to contract by 2% in 2019.


Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: natasha turak, kerem uzel, bloomberg, getty images
Keywords: news, cnbc, companies, plans, interest, currency, markets, lira, scares, monetary, rate, foreign, turkeys, investors, inflation, turkish, takes, dive, bank, central, emerging


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The world’s worst-performing currency could slip into ‘crisis’ mode later this year

Renewed market volatility in Argentina could spark another currency crisis, analysts have told CNBC, as the recession-hit country prepares for presidential elections toward the end of the year. The Argentine peso settled at $43.68 on Monday, recovering slightly after falling to a closing record low of $43.97 on Friday. It is — by some distance — the world’s worst-performing currency so far this year. “In Argentina, they are super-sensitive to any shift in the peso — more than any other country I


Renewed market volatility in Argentina could spark another currency crisis, analysts have told CNBC, as the recession-hit country prepares for presidential elections toward the end of the year. The Argentine peso settled at $43.68 on Monday, recovering slightly after falling to a closing record low of $43.97 on Friday. It is — by some distance — the world’s worst-performing currency so far this year. “In Argentina, they are super-sensitive to any shift in the peso — more than any other country I
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Company: cnbc, Activity: cnbc, Date: 2019-04-09  Authors: sam meredith, reuters, agustin marcarian, sean gallup, getty images
Keywords: news, cnbc, companies, worlds, slip, mode, argentina, worstperforming, mackie, currency, crisis, peso, volatility, later, told, renewed, country, yearthe


The world's worst-performing currency could slip into 'crisis' mode later this year

Renewed market volatility in Argentina could spark another currency crisis, analysts have told CNBC, as the recession-hit country prepares for presidential elections toward the end of the year.

The popularity of President Mauricio Macri has taken a substantial hit in recent months, with rampant inflation, austerity measures and rising poverty rates all threatening to derail the pro-market candidate’s re-election campaign.

The Argentine peso settled at $43.68 on Monday, recovering slightly after falling to a closing record low of $43.97 on Friday. It is — by some distance — the world’s worst-performing currency so far this year.

“In Argentina, they are super-sensitive to any shift in the peso — more than any other country I can think of. They look at the peso as a guide for the economy and so, politically, it is really important,” Fiona Mackie, regional director for Latin America at the Economist Intelligence Unit (EIU), told CNBC via telephone.

“We shouldn’t see a dramatic overshooting of the peso like we saw in August last year but, having said that, there is a risk of renewed volatility at any moment,” Mackie said.


Company: cnbc, Activity: cnbc, Date: 2019-04-09  Authors: sam meredith, reuters, agustin marcarian, sean gallup, getty images
Keywords: news, cnbc, companies, worlds, slip, mode, argentina, worstperforming, mackie, currency, crisis, peso, volatility, later, told, renewed, country, yearthe


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Coming soon: a world without cash

A world without cash: Could it happen? 7:29 AM ET Fri, 22 Feb 2019 | 02:34The U.S. is finally embracing contactless payments, which will likely accelerate the move away from cash in favor of credit, debit and mobile wallets. “This could further the transition from cash to plastic,” said Ted Rossman, an industry analyst at Creditcards.com. In fact, fewer and fewer adults are using printed or minted U.S. currency at all any more. For now, paper currency still remains the most frequent method of pa


A world without cash: Could it happen? 7:29 AM ET Fri, 22 Feb 2019 | 02:34The U.S. is finally embracing contactless payments, which will likely accelerate the move away from cash in favor of credit, debit and mobile wallets. “This could further the transition from cash to plastic,” said Ted Rossman, an industry analyst at Creditcards.com. In fact, fewer and fewer adults are using printed or minted U.S. currency at all any more. For now, paper currency still remains the most frequent method of pa
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Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: jessica dickler, getty images, justin sullivan
Keywords: news, cnbc, companies, fewer, contactless, currency, world, mobile, credit, according, debit, soon, tap, coming, transportation, cash


Coming soon: a world without cash

A world without cash: Could it happen? 7:29 AM ET Fri, 22 Feb 2019 | 02:34

The U.S. is finally embracing contactless payments, which will likely accelerate the move away from cash in favor of credit, debit and mobile wallets. And it’s largely thanks to hurried commuters.

As soon as this spring, New York City subways and buses will enable riders to tap a contactless bank card or their mobile wallet at turnstiles, according to the Metropolitan Transportation Authority, or MTA, which runs America’s largest urban transportation network.

“The ability to tap through the turnstile is going to be great,” said Chris Reid, an executive vice president of cyber, intelligence and data services at Mastercard. “It drives a huge amount of efficiencies for the transit system.”

“This could further the transition from cash to plastic,” said Ted Rossman, an industry analyst at Creditcards.com.

In fact, fewer and fewer adults are using printed or minted U.S. currency at all any more. About 3 in 10 Americans said they make no purchases with cash in a typical week, up from a quarter in 2015, according to the Pew Research Center.

For now, paper currency still remains the most frequent method of payment in the country overall, representing roughly 31 percent of all consumer transactions, more than electronic, credit, debit or checks.


Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: jessica dickler, getty images, justin sullivan
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Dollar rises again despite Trump trying to ‘jawbone’ the US currency lower

The U.S. Dollar Currency Index, which tracks the U.S. currency’s performance against others like the euro, was up 0.2 percent at 96.74. The moves came after Trump said on Saturday he was not pleased with how strong the dollar had become relative to other world currencies. “I want a dollar that’s great for our country but not a dollar that’s prohibitive for us to be doing business with other countries,” he said. Trump has sparked significant moves in the dollar previously, but experts say there i


The U.S. Dollar Currency Index, which tracks the U.S. currency’s performance against others like the euro, was up 0.2 percent at 96.74. The moves came after Trump said on Saturday he was not pleased with how strong the dollar had become relative to other world currencies. “I want a dollar that’s great for our country but not a dollar that’s prohibitive for us to be doing business with other countries,” he said. Trump has sparked significant moves in the dollar previously, but experts say there i
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Company: cnbc, Activity: cnbc, Date: 2019-03-04  Authors: fred imbert, hillary kladke, moment, getty images
Keywords: news, cnbc, companies, jawbone, currency, thats, lower, hiking, despite, investors, fed, trying, world, really, dollar, past, trump, rises


Dollar rises again despite Trump trying to 'jawbone' the US currency lower

The U.S. dollar rose against a basket of various currencies on Monday as investors looked past comments made by President Donald Trump over the weekend regarding the greenback.

The U.S. Dollar Currency Index, which tracks the U.S. currency’s performance against others like the euro, was up 0.2 percent at 96.74. Against the euro, the dollar gained half a percent and traded at $1.132.

The moves came after Trump said on Saturday he was not pleased with how strong the dollar had become relative to other world currencies. “I want a dollar that’s great for our country but not a dollar that’s prohibitive for us to be doing business with other countries,” he said.

Trump has sparked significant moves in the dollar previously, but experts say there is little he can do now to talk the currency down.

“I think currency investors are looking past those remarks,” said Aaron Hurd, senior portfolio manager of currency at State Street Global Advisors. The reason is “it’s unlikely Trump is going to be able to change the [Federal Reserve] outlook. When the Fed was hiking every quarter and projecting another hike, Trump would say something that would raise some concern that maybe he could change the Fed’s trajectory and have them slow down.”

“Now that the Fed is really in a patient, wait-and-see mode, there’s really not that much behavior to change. That’s already happened. The Fed has gone from hiking to doing nothing, so Trump’s comments don’t really matter unless Trump would be able to convince them to cut, but that’s a much more heroic assumption to make,” Hurd said.

The Federal Reserve signaled earlier this year it will be “patient” in raising rates this year after hiking four times in 2018.Trump criticized the Fed’s decisions throughout 2018. In October, he said the central bank had “gone crazy” by continuing to raise rates.

Over the past 12 months, the dollar has risen more than 7 percent and is up about 1 percent over the past month. Last year, the greenback gained more than 4 percent.

Chris Gaffney, president of world markets at TIAA Bank, said investors are lagely ignoring Trump’s attempt to “jawbone” the dollar as the odds of him changing the course of Fed policy are slim. He also said the key catalyst for the U.S. currency has been interest-rate differentials as short-term U.S. debt yields are higher than those overseas.

“It’s still a case of interest rates here in the U.S. are higher than anywhere in the developed world,” Gaffney said. “Therefore, when you look at the dollar versus the euro versus the yen, investors are paid more to hold dollars than to hold euros or yen right now.”

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Company: cnbc, Activity: cnbc, Date: 2019-03-04  Authors: fred imbert, hillary kladke, moment, getty images
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Stocks falter on trade deal ‘fatigue’: Three experts weigh in on the sell-off

Stocks drop even as US and China edge closer to trade deal. We have rallied 80 days, each day, on renewed optimism over China talks, and 50 different derivations of that. I don’t think the market actually cares about the details. It has fallen, but they’ve actually been trying to prop it up. But I think the markets themselves are going to really like the deal.”


Stocks drop even as US and China edge closer to trade deal. We have rallied 80 days, each day, on renewed optimism over China talks, and 50 different derivations of that. I don’t think the market actually cares about the details. It has fallen, but they’ve actually been trying to prop it up. But I think the markets themselves are going to really like the deal.”
Stocks falter on trade deal ‘fatigue’: Three experts weigh in on the sell-off Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-04  Authors: lizzy gurdus, jim watson, afp, getty images, jim young, michael nagle, bloomberg, carlo allegri, kcna, thomas barwick getty images
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Stocks falter on trade deal 'fatigue': Three experts weigh in on the sell-off

Stocks drop even as US and China edge closer to trade deal. Here’s what six experts are watching 11 Hours Ago | 04:25

Stocks sold off Monday despite reports that U.S.-China trade talks were in their “final stages,” with the Dow Jones Industrial Average ending the day down 200 points after falling more than 400 points at the lows of the session. The S&P 500 also slipped, closing below its key 2,800 threshold.

Some experts say it’s because investors have grown tired of incremental developments in the negotiations. Here are three market watchers’ reactions to Monday’s drop:

Josh Brown, CEO of Ritholtz Wealth Management and a CNBC contributor, told CNBC’s “Halftime Report” that “We finally have deal headline fatigue. We have rallied 80 days, each day, on renewed optimism over China talks, and 50 different derivations of that. But it’s the same story every day. Sometimes it happens in the middle of the day, so we open red and then we close green. So, how many days in a row can you rally on the same premise? So I think the market now understands something will happen. I don’t think the market actually cares about the details. I think we want some sort of resolution, and then some people will say it’s good, some will say it’s bad, and we’ll be back to politics as normal.”

Safanad’s chief investment officer, John Rutledge, who advised former Presidents Ronald Reagan and George H. W. Bush, contended on CNBC’s “Squawk on the Street” that a finalized deal could actually boost stocks: “There are some people inside our government that think that China’s been pushing their currency down. It has fallen, but they’ve actually been trying to prop it up. It’s fallen because foreign investors have pulled their money out of China, making it difficult to maintain the currency at its current level. And so announcing a stable currency is going to discourage those people from pulling capital out. It’ll actually make the People’s Bank of China’s job a lot easier. The economy is very weak, they’ve done all they can do to stimulate it, and it’ll take some time before that takes effect. But I think the markets themselves are going to really like the deal.”


Company: cnbc, Activity: cnbc, Date: 2019-03-04  Authors: lizzy gurdus, jim watson, afp, getty images, jim young, michael nagle, bloomberg, carlo allegri, kcna, thomas barwick getty images
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Elon Musk: ‘Paper money is going away’

“Paper money is going away,” Musk said in a podcast released Tuesday. “Crypto[currency] is a far better way to transfer value than pieces of paper, that’s for sure,” Musk said on the “FYI — For Your Innovation” podcast. “I think one of the downsides of crypto is that it, computationally, it is like quite energy intensive,” Musk said. In the tweet, Musk references, @Jack, Twitter co-founder and CEO Jack Dorsey, who is a proponent of bitcoin. “The world ultimately will have a single currency, the


“Paper money is going away,” Musk said in a podcast released Tuesday. “Crypto[currency] is a far better way to transfer value than pieces of paper, that’s for sure,” Musk said on the “FYI — For Your Innovation” podcast. “I think one of the downsides of crypto is that it, computationally, it is like quite energy intensive,” Musk said. In the tweet, Musk references, @Jack, Twitter co-founder and CEO Jack Dorsey, who is a proponent of bitcoin. “The world ultimately will have a single currency, the
Elon Musk: ‘Paper money is going away’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: catherine clifford, joe skipper
Keywords: news, cnbc, companies, musk, paper, bitcoin, maybe, intensive, away, going, currency, single, quite, elon, money, involved, jack


Elon Musk: 'Paper money is going away'

Silicon Valley billionaire Elon Musk has sounded the death knell for cash. “Paper money is going away,” Musk said in a podcast released Tuesday.

“Crypto[currency] is a far better way to transfer value than pieces of paper, that’s for sure,” Musk said on the “FYI — For Your Innovation” podcast.

In particular, Musk said the technology behind bitcoin is “quite brilliant” and “it seems like there is some merit to etherium and maybe some of the others.”

However, Tesla will not be getting involved with digital currency, because Musk says it’s not a good use of the company’s resources. Plus, creating or mining cryptocurrency takes a lot of computer power, and therefore electricity.

“I think one of the downsides of crypto is that it, computationally, it is like quite energy intensive,” Musk said. “it is very energy intensive to create the incremental bitcoin at this point.”

Though Musk says he has friends that are “really involved in crypto,” in February Musk said he “literally” owns “zero cryptocurrency” other than .25 BTC that someone gave him years ago. (Bitcoin closed trading at $3,924.24 on Tuesday.)

In the tweet, Musk references, @Jack, Twitter co-founder and CEO Jack Dorsey, who is a proponent of bitcoin.

“The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin,” Dorsey told The Times of London in March. It will happen “probably over ten years, but it could go faster,” he said.

See also:

Elon Musk: Moving to Mars will cost less than $500,000, ‘maybe even below $100,000’

Elon Musk: This is the ‘why’ of Tesla

Meet Tom Mueller: From Idaho logger to SpaceX co-founder who makes Elon Musk’s rockets lift off


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: catherine clifford, joe skipper
Keywords: news, cnbc, companies, musk, paper, bitcoin, maybe, intensive, away, going, currency, single, quite, elon, money, involved, jack


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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
Dollar slips on US-China trade hopes, Swedish crown sags Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: matt cardy i getty images
Keywords: news, cnbc, companies, sags, swedish, uschina, hopes, crown, euro, data, showed, currencies, inflation, slips, currency, fell, major, dollar, trade


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
Keywords: news, cnbc, companies, sags, swedish, uschina, hopes, crown, euro, data, showed, currencies, inflation, slips, currency, fell, major, dollar, trade


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