Real estate mogul Barry Sternlicht: WeWork went ‘off the rails’ but it’s still a ‘real company’

Real estate mogul Barry Sternlicht told CNBC on Friday that while WeWork has had its failures, there’s still a real business to be found at its core. “This company got a little off of the rails,” said Sternlicht, chairman and CEO of investment firm Starwood Capital, which has about $60 billion in assets under management. But he still think’s “it’s a real company.” Sternlicht in the past had a negative outlook on WeWork before becoming bullish on the company. “If you cut the overhead there’s a pr


Real estate mogul Barry Sternlicht told CNBC on Friday that while WeWork has had its failures, there’s still a real business to be found at its core.
“This company got a little off of the rails,” said Sternlicht, chairman and CEO of investment firm Starwood Capital, which has about $60 billion in assets under management.
But he still think’s “it’s a real company.”
Sternlicht in the past had a negative outlook on WeWork before becoming bullish on the company.
“If you cut the overhead there’s a pr
Real estate mogul Barry Sternlicht: WeWork went ‘off the rails’ but it’s still a ‘real company’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-18  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, real, rails, company, estate, overhead, wework, cut, past, went, sternlicht, barry, capital, starwood, mogul, theres


Real estate mogul Barry Sternlicht: WeWork went 'off the rails' but it's still a 'real company'

Real estate mogul Barry Sternlicht told CNBC on Friday that while WeWork has had its failures, there’s still a real business to be found at its core.

“This company got a little off of the rails,” said Sternlicht, chairman and CEO of investment firm Starwood Capital, which has about $60 billion in assets under management. But he still think’s “it’s a real company.”

WeWork has had a tumultuous past few months as it tried to go public.

The office-sharing company revealed a $900 million loss in its prospectus; pulled its initial public offering after concerns about a falling valuation and its corporate governance structure; and fired its CEO and top stakeholder Adam Neumann.

Without additional funding, WeWork will likely run out of cash by mid-November.

“It was built for hypergrowth and that is too capital intensive,” said Sternlicht, who in 1991 co-founded Starwood Capital, which created Starwood Hotels, now part of Marriott, as well as other leisure brands. “You have to build steady growth, not hypergrowth.”

Sternlicht in the past had a negative outlook on WeWork before becoming bullish on the company. “I’m conflicted on this,” he said, when asked about his current view. He would only say “we’re involved” and declined to comment any further.

Facing a cash crunch, WeWork’s biggest outside shareholder, SoftBank, and J.P. Morgan, which was supposed to lead the IPO, are working to put together a financial rescue package, according to people familiar with the matter.

Sternlicht added that WeWork needs to cut its overhead significantly in order to turn itself around. “You have to reshape the company,” he said. “If you cut the overhead there’s a profitable business at some level.”

A spokesperson for WeWork was not immediately available to respond to CNBC’s request for comment on Sternlicht’s statements.


Company: cnbc, Activity: cnbc, Date: 2019-10-18  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, real, rails, company, estate, overhead, wework, cut, past, went, sternlicht, barry, capital, starwood, mogul, theres


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The Federal Reserve could soon pause in its latest rate-cutting cycle

The Federal Reserve could soon pause in its latest rate-cutting cycle, and, depending on economic data and developments in trade talks, that could happen at, or more likely, after the Oct. 29-30 meeting. Dallas Fed President Robert Kaplan said he’s “agnostic” on future rate cuts. If there is no October rate cut, the Fed could instead cut again in December or pause again. Adding support to the idea of a pause: The Fed is divided over the next move. A pause could give time for the data and develop


The Federal Reserve could soon pause in its latest rate-cutting cycle, and, depending on economic data and developments in trade talks, that could happen at, or more likely, after the Oct. 29-30 meeting.
Dallas Fed President Robert Kaplan said he’s “agnostic” on future rate cuts.
If there is no October rate cut, the Fed could instead cut again in December or pause again.
Adding support to the idea of a pause: The Fed is divided over the next move.
A pause could give time for the data and develop
The Federal Reserve could soon pause in its latest rate-cutting cycle Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: steve liesman
Keywords: news, cnbc, companies, fed, cut, pause, trade, cycle, policy, view, data, latest, soon, week, rate, president, ratecutting, reserve, federal


The Federal Reserve could soon pause in its latest rate-cutting cycle

The Federal Reserve could soon pause in its latest rate-cutting cycle, and, depending on economic data and developments in trade talks, that could happen at, or more likely, after the Oct. 29-30 meeting.

Chicago Fed President Charles Evans, who had strongly supported the last two rate cuts, said this week he saw no future cuts this year, though he’s willing to consider one if the data worsen. Dallas Fed President Robert Kaplan said he’s “agnostic” on future rate cuts. And Fed Chairman Jerome Powell, in a speech last week that many saw affirming the market’s view that the Fed would cut in October, pointedly said decisions are being made meeting by meeting and appeared neutral on future actions.

Fed Funds Futures trade with an 83% probability of a rate cut, but recent comments suggest there’s somewhat more risk to this outlook than is currently priced in.

In the Fed’s view, it has delivered three rounds of stimulus: First, it reversed course from planned rate hikes last year; second, it stopped reducing its balance sheet and began increasing it in step with economic growth; and third, it cut rates twice by a quarter point.

There may yet be a third cut, which could come this month or December, but the Fed will want to see what effects the current stimulus will have before continuing. Many have said policymakers are willing to cut rates more if the data get uglier, but when officials say they see policy in the right place, it suggests they believe policy has anticipated current economic weakness.

There are still nearly two weeks until the meeting and data could break decisively either way. Several additional Fed speakers this week, including Fed Vice Chairman Richard Clarida and New York Fed President John Williams, could support the market’s view or push back against its certainty. Williams speaks on Thursday.

If there is no October rate cut, the Fed could instead cut again in December or pause again. What happens with trade could be critical to Fed decision-making. Even a partial deal between China and the U.S. could eliminate one of the most serious risks hanging over the U.S. economy. But the Fed will also need to consider the possibility of another failed round of talks that could lead to a more severe slowing.

Adding support to the idea of a pause: The Fed is divided over the next move. A pause could give time for the data and developments to clarify the right policy.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: steve liesman
Keywords: news, cnbc, companies, fed, cut, pause, trade, cycle, policy, view, data, latest, soon, week, rate, president, ratecutting, reserve, federal


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Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media

Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media4 Hours AgoSteve Forbes of Forbes Media discusses potential tax cuts in the U.S., India’s economy and Brexit.


Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media4 Hours AgoSteve Forbes of Forbes Media discusses potential tax cuts in the U.S., India’s economy and Brexit.
Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, tax, media, trump, unveil, cut, media4, indias, economy, hours, aggressive, potential, 2020, forbes


Trump should unveil an 'aggressive tax cut' in 2020: Forbes Media

Trump should unveil an ‘aggressive tax cut’ in 2020: Forbes Media

4 Hours Ago

Steve Forbes of Forbes Media discusses potential tax cuts in the U.S., India’s economy and Brexit.


Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, tax, media, trump, unveil, cut, media4, indias, economy, hours, aggressive, potential, 2020, forbes


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IMF says trade war will cut global growth to lowest since financial crisis a decade ago

The U.S.-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday, adding that the outlook could darken considerably if trade tensions remain unresolved. The IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast, largely due to increasing fallout from global trade friction. Qilai Shen | Bloomberg | Getty ImagesThe global crisis lender sai


The U.S.-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday, adding that the outlook could darken considerably if trade tensions remain unresolved. The IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast, largely due to increasing fallout from global trade friction. Qilai Shen | Bloomberg | Getty ImagesThe global crisis lender sai
IMF says trade war will cut global growth to lowest since financial crisis a decade ago Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, 2019, decade, world, imf, lowest, trade, war, 2018, cut, tariffs, economic, financial, crisis, forecast, global, growth


IMF says trade war will cut global growth to lowest since financial crisis a decade ago

The U.S.-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday, adding that the outlook could darken considerably if trade tensions remain unresolved. The IMF said its latest World Economic Outlook projections show 2019 GDP growth at 3.0%, down from 3.2% in a July forecast, largely due to increasing fallout from global trade friction. The forecasts set a gloomy backdrop for the IMF and World Bank annual meetings this week in Washington, where the Fund’s new managing director, Kristalina Georgieva, is inheriting a range of problems, from stagnating trade to political backlash in some emerging market countries struggling with IMF-mandated austerity programs. The World Economic Outlook report spells out in sharp detail the economic difficulties caused by the U.S.-China tariffs, including direct costs, market turmoil, reduced investment and lower productivity due to supply chain disruptions.

The Hapag-Lloyd AG Leverkusen Express sails out of the Yangshan Deepwater Port, operated by Shanghai International Port Group Co. (SIPG), in this aerial photograph taken in Shanghai, China, on Wednesday, Aug. 7, 2019. Qilai Shen | Bloomberg | Getty Images

The global crisis lender said that by 2020, announced tariffs would reduce global economic output by 0.8%. Georgieva said last week that this translates to a loss of $700 billion, or the equivalent of making Switzerland’s economy disappear. “The weakness in growth is driven by a sharp deterioration in manufacturing activity and global trade, with higher tariffs and prolonged trade policy uncertainty damaging investment and demand for capital goods,” IMF Chief Economist Gita Gopinath said in a statement. Services were still strong across much of the world, but there were some signs of softening in services in the United States and Europe, Gopinath said. For 2020, the Fund said global growth was set to pick up to 3.4% due to expectations of better performances in Brazil, Mexico, Russia, Saudi Arabia, and Turkey. But this forecast was a tenth of a point lower than in July and was vulnerable to downside risks, including worse trade tensions, Brexit-related disruptions and an abrupt aversion to risk in financial markets.

Investment, trade stall

The IMF said foreign direct investment abroad by advanced economies came to “a virtual standstill” in 2018 after increasing in earlier years to average more than 3% of global gross domestic product annually – or more than $1.8 trillion. The institution said the decline of some $1.5 trillion between 2017 and 2018 reflected purely financial operations by large multinational corporations, including in response to changes in U.S. tax law. Global vehicle purchases fell by 3% in 2018, reflecting a drop in demand in China after expiration of tax incentives and production adjustments after adoption of new emissions standards in Germany and other eurozone countries. Global trade growth reached just 1% in the first half of 2019, the weakest level since 2012, weighed down by higher tariffs and prolonged uncertainty about trade policies, as well as a slump in the automobile industry. After expanding by 3.6% in 2018, the IMF now projects global trade volume will increase just 1.1% in 2019, 1.4 percentage points less than it forecast in July and 2.3 percentage points less than forecast in April. Trade growth was expected to rebound to 3.2% in 2020, however risks remained “skewed to the downside,” the IMF said, with a significant drag on both the U.S. and Chinese economies. For a table showing IMF country and regional forecasts, see

Tariff, reshoring losses


Company: cnbc, Activity: cnbc, Date: 2019-10-15
Keywords: news, cnbc, companies, 2019, decade, world, imf, lowest, trade, war, 2018, cut, tariffs, economic, financial, crisis, forecast, global, growth


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Ron Paul: Fed cuts and China tariffs give socialists credibility for ‘first time in my lifetime’

Libertarian Ron Paul, a longtime critic of the Federal Reserve and U.S. meddling overseas, describes central bank interest rate cuts and President Donald Trump’s China tariffs as interventionist moves “far removed from capitalism.” Known for his economic and stock market bubble warnings, Paul, 84, said on “Squawk Box” the Fed is “doing too much” in the way of easing monetary policy. “It is central economic planning, mainly through manipulation of money and credit.” The market expects at least on


Libertarian Ron Paul, a longtime critic of the Federal Reserve and U.S. meddling overseas, describes central bank interest rate cuts and President Donald Trump’s China tariffs as interventionist moves “far removed from capitalism.” Known for his economic and stock market bubble warnings, Paul, 84, said on “Squawk Box” the Fed is “doing too much” in the way of easing monetary policy. “It is central economic planning, mainly through manipulation of money and credit.” The market expects at least on
Ron Paul: Fed cuts and China tariffs give socialists credibility for ‘first time in my lifetime’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, fed, paul, credibility, china, economic, lifetime, tariffs, cuts, central, policy, socialists, ron, trump, cut, monetary


Ron Paul: Fed cuts and China tariffs give socialists credibility for 'first time in my lifetime'

Libertarian Ron Paul, a longtime critic of the Federal Reserve and U.S. meddling overseas, describes central bank interest rate cuts and President Donald Trump’s China tariffs as interventionist moves “far removed from capitalism.”

“It’s a real incentive for the socialists to chime in — and for the first time in my lifetime, socialists sort of have ‘credibility,'” the former GOP Texas congressman and three-time presidential candidate told CNBC on Friday.

Known for his economic and stock market bubble warnings, Paul, 84, said on “Squawk Box” the Fed is “doing too much” in the way of easing monetary policy. “It is central economic planning, mainly through manipulation of money and credit.”

The market expects at least one more Fed rate cut before the end of the year. Fed policymakers reduced borrowing costs for the first time in more than a decade after their July meeting. They cut again last month.

Fed Chairman Jerome Powell — bashed constantly by Trump for not doing enough to easy monetary policy — said on Tuesday the central bank will start expanding its balance sheet again “soon.”

“In no sense is this QE,” Powell said in a Q&A session after his speech. QE refers to quantitative easing, a bond-buying measure it launched following the 2008 financial crisis. The Fed embarked on several QE programs during and after the crisis.

Fed critics, like Paul, think the Fed stayed in post-crisis mode for too long, artificially inflating asset prices and making investors take on too much risk to get returns.

“Then we get into manipulating trade,” Paul said, referring to the import tariffs Trump imposed on China that started the 15-month-long trade war between the two nations.

“We’re so far removed from capitalism,” the former congressman said. “Yet we get blamed,” he added. “Socialists come in and say, ‘See what you guys did to our economy.'”

To find balance in the markets, Paul said the U.S. needs to cut spending, get rid of the federal deficit and stop the Fed from “pretending they can do economic planning.”

“Unfortunately, that’s not going to happen,” Paul added. “I believe we’re going to see a collapse that will force us to reassess the monetary policy, and that will be very disruptive.”

The Fed and White House were not immediately available to respond to CNBC’s request for comment on Paul’s remarks.


Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, fed, paul, credibility, china, economic, lifetime, tariffs, cuts, central, policy, socialists, ron, trump, cut, monetary


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WeWork will close its private school in 2020 as it looks to cut costs

WeWork is shutting down early education school WeGrow later this year, in what represents the latest cost-cutting measure by the struggling office-sharing company. A WeWork spokesperson told CNBC that WeGrow will continue to operate through the remainder of the 2019-20 school year. The elementary school is located in New York’s Chelsea neighborhood and charges as much as $42,000 per year in tuition. “WeWork and the families of WeGrow students are engaging in discussions with interested parties r


WeWork is shutting down early education school WeGrow later this year, in what represents the latest cost-cutting measure by the struggling office-sharing company. A WeWork spokesperson told CNBC that WeGrow will continue to operate through the remainder of the 2019-20 school year. The elementary school is located in New York’s Chelsea neighborhood and charges as much as $42,000 per year in tuition. “WeWork and the families of WeGrow students are engaging in discussions with interested parties r
WeWork will close its private school in 2020 as it looks to cut costs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: annie palmer
Keywords: news, cnbc, companies, operate, spokesperson, families, looks, efforts, close, 2020, ipo, school, private, wegrow, costs, students, cut, wework, company


WeWork will close its private school in 2020 as it looks to cut costs

WeWork is shutting down early education school WeGrow later this year, in what represents the latest cost-cutting measure by the struggling office-sharing company.

The news was first reported by The Huffington Post.

A WeWork spokesperson told CNBC that WeGrow will continue to operate through the remainder of the 2019-20 school year. The elementary school is located in New York’s Chelsea neighborhood and charges as much as $42,000 per year in tuition.

“As part of the company’s efforts to focus on its core business, WeWork has informed the families of WeGrow students that we will not operate WeGrow after this school year,” the spokesperson said in a statement. “WeWork and the families of WeGrow students are engaging in discussions with interested parties regarding plans for WeGrow for the following school year.”

The move follows additional efforts by WeWork’s new co-CEOs, Artie Minson and Sebastian Gunningham, to trim the fat at the company. Since Adam Neumann exited the company in September, the company has put three companies up for sale, including event organizing platform Meetup, office management company Managed by Q and marketing company Conductor, according to The Information.

According to a separate report in The Information, WeWork could further reduce costs by slashing up to one-third of the company’s workers, or roughly 5,000 employees.

Late last month, WeWork withdrew its IPO filing amid sharp criticism from investors, mounting losses and a dwindling IPO valuation.


Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: annie palmer
Keywords: news, cnbc, companies, operate, spokesperson, families, looks, efforts, close, 2020, ipo, school, private, wegrow, costs, students, cut, wework, company


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Trump says the Fed should cut rates anyway even though US and China have agreed to trade deal

President Donald Trump said Friday the Federal Reserve should still lower interest rates even though China and the U.S. agreed to the first part of a trade deal. “The Federal Reserve should cut rates regardless of how good this is,” Trump said in the Oval Office. “We have a great economy, but we have a Federal Reserve that’s not in step with the rest of the world.” U.S. economic growth has been slowing this year with many economists citing the trade war with China. The Fed had said that growth c


President Donald Trump said Friday the Federal Reserve should still lower interest rates even though China and the U.S. agreed to the first part of a trade deal. “The Federal Reserve should cut rates regardless of how good this is,” Trump said in the Oval Office. “We have a great economy, but we have a Federal Reserve that’s not in step with the rest of the world.” U.S. economic growth has been slowing this year with many economists citing the trade war with China. The Fed had said that growth c
Trump says the Fed should cut rates anyway even though US and China have agreed to trade deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: fred imbert
Keywords: news, cnbc, companies, agreed, war, fed, cut, china, trump, reserve, phase, federal, end, trade, rates, deal


Trump says the Fed should cut rates anyway even though US and China have agreed to trade deal

US President Donald Trump speaks after announcing and initial deal with China while meeting the special Envoy and Vice Premier of the People’s Republic of China Liu He at the Oval Office of the White House in Washington, DC on October 11, 2019.

President Donald Trump said Friday the Federal Reserve should still lower interest rates even though China and the U.S. agreed to the first part of a trade deal.

“The Federal Reserve should cut rates regardless of how good this is,” Trump said in the Oval Office. “We have a great economy, but we have a Federal Reserve that’s not in step with the rest of the world.”

“I think they ought to get in step,” he said.

The U.S. central bank has already cut rates twice this year in part because of weakness in the global economy, which has arisen due to the ongoing trade war. On Friday, however, the two sides announced strides to end the trade war.

Trump announced the first phase of a trade deal that will bring Chinese agricultural purchases to a range of $40 billion to $50 billion. That phase also includes agreements by both nations on intellectual property, Trump said, as well as accords on foreign exchange issues. In exchange, the U.S. agreed to hold off on tariff increases scheduled for next week. Trump also said that phase two of the deal will come soon after the terms of the first one is signed.

The Fed is scheduled to meet at the end of the month, with investors largely expecting a rate cut. Market expectations for lower interest rates by the end of October were at 74.3%, according to the CME Group’s FedWatch tool.

U.S. economic growth has been slowing this year with many economists citing the trade war with China. The Fed expects GDP for 2019 to come in at 2.2%, down from 2.9% in 2018. The Fed had said that growth could be worse if the trade war continued.


Company: cnbc, Activity: cnbc, Date: 2019-10-11  Authors: fred imbert
Keywords: news, cnbc, companies, agreed, war, fed, cut, china, trump, reserve, phase, federal, end, trade, rates, deal


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Goldman downgrades Cisco, says trade ‘uncertainty’ is causing businesses to cut spending

The struggling IPO class of 2019 could be facing another wave of… Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year. Marketsread more


The struggling IPO class of 2019 could be facing another wave of… Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year. Marketsread more
Goldman downgrades Cisco, says trade ‘uncertainty’ is causing businesses to cut spending Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: pippa stevens
Keywords: news, cnbc, companies, ipos, downgrades, stocks, periods, cisco, trade, struggling, businesses, cut, yearmarketsread, goldman, wave, ipo, spending, oflock, pressure, layer, uncertainty, causing


Goldman downgrades Cisco, says trade 'uncertainty' is causing businesses to cut spending

The struggling IPO class of 2019 could be facing another wave of…

Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year.

Markets

read more


Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: pippa stevens
Keywords: news, cnbc, companies, ipos, downgrades, stocks, periods, cisco, trade, struggling, businesses, cut, yearmarketsread, goldman, wave, ipo, spending, oflock, pressure, layer, uncertainty, causing


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Goldman downgrades Cisco, says trade ‘uncertainty’ is causing businesses to cut spending

The struggling IPO class of 2019 could be facing another wave of… Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year. Marketsread more


The struggling IPO class of 2019 could be facing another wave of… Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year. Marketsread more
Goldman downgrades Cisco, says trade ‘uncertainty’ is causing businesses to cut spending Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: pippa stevens
Keywords: news, cnbc, companies, ipos, downgrades, stocks, periods, cisco, trade, struggling, businesses, cut, yearmarketsread, goldman, wave, ipo, spending, oflock, pressure, layer, uncertainty, causing


Goldman downgrades Cisco, says trade 'uncertainty' is causing businesses to cut spending

The struggling IPO class of 2019 could be facing another wave of…

Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year.

Markets

read more


Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: pippa stevens
Keywords: news, cnbc, companies, ipos, downgrades, stocks, periods, cisco, trade, struggling, businesses, cut, yearmarketsread, goldman, wave, ipo, spending, oflock, pressure, layer, uncertainty, causing


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In a falling rate environment, a different kind of CD can protect your savings

The Federal Reserve is expected to cut interest rates again later this month. High-yield savings accounts, which are generally offered by internet-only banks or subsidiaries, make you more money. Savings account yields have been decreasing as a result, although as an October MagnifyMoney.com report points out, online savings accounts “haven’t yet fallen as far.” This summer, Goldman Sachs’ Marcus and Ally cut their savings rates for the first time, each by 0.1%. In fact, traders are betting with


The Federal Reserve is expected to cut interest rates again later this month. High-yield savings accounts, which are generally offered by internet-only banks or subsidiaries, make you more money. Savings account yields have been decreasing as a result, although as an October MagnifyMoney.com report points out, online savings accounts “haven’t yet fallen as far.” This summer, Goldman Sachs’ Marcus and Ally cut their savings rates for the first time, each by 0.1%. In fact, traders are betting with
In a falling rate environment, a different kind of CD can protect your savings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: bob sullivan, alizah salario, sam becker, lisa ferber
Keywords: news, cnbc, companies, rates, months, falling, different, environment, interest, accounts, kind, savers, savings, earn, cut, rate, highyield, protect


In a falling rate environment, a different kind of CD can protect your savings

The Federal Reserve is expected to cut interest rates again later this month. As rates fall, securing a steady return through a low-commitment certification of deposit (CD) is becoming a more appealing option for savers. With a traditional CD, you can’t withdraw money for a predetermined length of time – like six months, 12 months, or even five years – without paying for the privilege. But some banks are offering no-penalty CDs that do away with that caveat. Savers benefit from a fixed interest rate for a set period, and you can withdraw without penalty. “In a falling rate environment, it’s a good option,” Ken Tumin, founder of DepositAccounts.com, told Grow earlier this year.

Falling interest rates can affect your savings

Savings accounts don’t usually provide much interest. The average traditional savings account pays roughly 0.09% annually, according to the FDIC. That’s 9 cents for every $100 after one year. High-yield savings accounts, which are generally offered by internet-only banks or subsidiaries, make you more money. Right now, rates hover around 2% at Ally bank, Barclay’s, and Discover, so savers earn about $2 for every $100 annually. If your emergency fund holds $10,000, you’ll earn about $200 each year in a high-yield account.

The Fed has cut rates twice this year, in July and September, however. Savings account yields have been decreasing as a result, although as an October MagnifyMoney.com report points out, online savings accounts “haven’t yet fallen as far.” This summer, Goldman Sachs’ Marcus and Ally cut their savings rates for the first time, each by 0.1%. After further cuts, as of early October, both offer 1.9% yields. Market observers expect more rate cuts in the next few months. In fact, traders are betting with about 83% probability that central bankers will cut interest rates when they meet later this month. That means, even with a high-yield account, you could earn less interest on your savings. That can make CDs a more attractive option.

CDs help you lock in a rate


Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: bob sullivan, alizah salario, sam becker, lisa ferber
Keywords: news, cnbc, companies, rates, months, falling, different, environment, interest, accounts, kind, savers, savings, earn, cut, rate, highyield, protect


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