Now the market thinks the Fed could make an even deeper cut to rates later this month

Traders increased their bets on Thursday that the Fed could cut even deeper later this month. “This is a Fed that is data independent.They are not cutting interest rates because of incoming data. They are cutting interest rates because they worry about the future data and they are being pre-emptive,” she said. Now, the Fed has to follow through with a rate cut after its strong signals in order to maintain its credibility. Swonk said some investors believe Powell is responding to Trump by getting


Traders increased their bets on Thursday that the Fed could cut even deeper later this month. “This is a Fed that is data independent.They are not cutting interest rates because of incoming data. They are cutting interest rates because they worry about the future data and they are being pre-emptive,” she said. Now, the Fed has to follow through with a rate cut after its strong signals in order to maintain its credibility. Swonk said some investors believe Powell is responding to Trump by getting
Now the market thinks the Fed could make an even deeper cut to rates later this month Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: patti domm
Keywords: news, cnbc, companies, data, fed, month, economy, thinks, cut, interest, later, rate, central, rates, deeper, williams, market, cutting


Now the market thinks the Fed could make an even deeper cut to rates later this month

Like Ben Bernanke and Janet Yellen before him, Federal Reserve Chairman Jerome Powell may be worried that the central bank’s use of extreme policy during the financial crisis left him with a relatively small amount of fire power to head off the next economic decline.

That may make the idea of a so-called insurance rate cut later this month, an attractive option for the Fed chair, who looks determined to cut interest rates even as the domestic economy appears to be showing some signs of strength.

“It’s pretty incredible how strong the data has been. We added 224,000 jobs. We had an extraordinarily strong retail sales report; a 0.3% gain in core CPI month over month. Manufacturing surveys are rebounding. Jobless claims are hovering at cycle lows,” said Michelle Meyer, Bank of America head of U.S. economics. “The set of data heading into the next FOMC meeting is really quite robust.”

Yet, Meyer, like many Wall Street economists, expects Powell’s Fed on July 31 to pull the trigger on a quarter point rate cut, the first since 2008, and possibly the first of several. Traders increased their bets on Thursday that the Fed could cut even deeper later this month.

“This is a Fed that is data independent.They are not cutting interest rates because of incoming data. They are cutting interest rates because they worry about the future data and they are being pre-emptive,” she said. She said the strategy of using some of the few rate hikes the Fed has available to boost the economy, and keep it from rolling over is a gamble.

The Federal Reserve has increased interest rates nine times since it took the fed funds rate range to zero in the face of a looming depression in 2008. The Fed started raising interest rates again in December, 2015 and with quarter point increments, it had taken the fed funds rate range up to 2.25 to 2.50% by December, 2018.

New York Fed President John Williams Thursday added credence to market expectations the Fed will cut rates this month when he said he sees a need for the Fed to vaccinate the economy against risk when rates are low, and that the close proximity of zero rates has changed the way central banks react.

“When you have only so much stimulus at our disposal, it pays to act quickly to lower rates at the first sign of economic distress,” Williams said in a speech. His comments sent interest rates lower, the dollar lower and stocks higher.

“All the incremental data has been positive…what’s interesting is Williams is saying because of the proximity to the zero lower bound and the chance that monetary policy is constrained, they have to be more aggressive. If you only have so much space they have to really take advantage of that opportunity,” said BMO rate strategist Jon Hill.

The futures market is pricing in 100% odds of a quarter-point cut at the Fed’s next meeting and two more this year. Hill said the market priced in even higher odds that the Fed would make a 50 basis point cut in July, following Williams’ comment.

Specifically, the odds of a half-percentage-point cut by the Fed increased to 59% on Thursday following the Williams talk, up from about 35% earlier in the day, according to the CME’s Fedwatch tool.

Joseph LaVorgna, Natixis chief economist Americas, said Williams comments make it seem as though the Fed would be willing to cut by a half percentage point at its July meeting.

“In a weird way the strong data is going to make them go more. The strong data gives them an out. They can cut 50 [basis points] in July. At that point, they can go back to being data dependent. By going back to being data dependent, they actually buy themselves more optionality. They can go back to watching data and they can get more easing into the system,” said LaVorgna. “It’s a way to get future easing out into the market and to do it in a way that’s not destabilizing.”

All over the globe, central bankers are flexing policy, cutting rates and promising more easing as the Fed prepares to move. Indonesia and Korea bankers made surprise rate cuts Thursday morning, the latest in a series of central bank moves, and both the Bank of Japan and European Central Bank have been holding out the possibility of more easy policy.

“The reason they’re not willing to let the economy flirt with recession is because they feel they have limited policy space right now,” said Meyer.

Powell has laid out his reasons for a possible cut, and they did not so much include U.S. economic weakness, as much as he pointed to low inflation, a weak global economy and the unknown impact of trade wars.

“I think the reason the [U.S.] data looks so decent is because the Fed is going to cut. If the Fed had not pirouetted and pivoted, we would not have seen the improvement,” said Diane Swonk, chief economist at Grant Thornton. Now, the Fed has to follow through with a rate cut after its strong signals in order to maintain its credibility.

Powell’s Fed is pivoting, and this time pivoting away from a stricter interpretation of the central bank’s mandate than some of his predecessors. He has assigned the Fed the task of prolonging the economic recovery, commenting a number of times that the Fed “will act as appropriate to sustain the expansion.”

“To put that explicitly in the statement, it’s the Fed’s goal to sustain the expansion. I think they came to the realization that they have more slack in the economy than they realized and they’re pulling people in from the sidelines…It means a 3.7% unemployment rate today doesn’t mean what it meant in the past, ” she said.

The Fed is also fighting a global slowdown because it knows the impact will be felt in the U.S. Williams also noted that foreign central banks, specifically the ECB and Bank of Japan, with their negative yields, have less space to react to trouble, while the U.S. has the space to react to “run of the mill” negative shock.

Meyer expects the Fed to follow through with multiple cuts, but she said if the data holds up, the Fed may find a way to end the rate cutting cycle. But economists say the trade issues are perhaps the thorniest and one the Fed can’t easily combat.

“You’ve got decelerating growth. You’ve got warnings from abroad, and in both September of 1998 and September of 2007, the Fed said let’s cut rates a little bit and we’ll think of them as insurance cuts,” said Luke Tilley, chief economist at Wilmington Trust. In 2007, the economy was heading into the Great Recession and that plan did not work, but it did in 1998.

While the consumer-related data has been showing improvement, much of the U.S. manufacturing data has been weak, along with the rest of the world.

“If the problem with the economy is tariffs, and they keep going up, the Fed does not have the right medicine at their disposal,” said Tilley.

“What we really need to see is an improvement in the U.S. and Chinese trade relationship. If we really went to a bad place, I don’t think there’s much the Fed could do to fix the economy if we get more tariffs on more Chinese goods,” said Tilley..

Swonk said the downside of cutting interest rates for the Fed now is that it could be fueling a bubble in financial markets.

“The other danger of cutting is it looking like they’re being bullied by the White House. That is something they take seriously. It’s why a minority of presidents would rather skip this meeting and make a stand to show they would not capitulate to the president,” said Swonk. Swonk said some investors believe Powell is responding to Trump by getting set to cut interest rates in a good economy, but she does not believe that.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: patti domm
Keywords: news, cnbc, companies, data, fed, month, economy, thinks, cut, interest, later, rate, central, rates, deeper, williams, market, cutting


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Here’s who benefits from the Fed cutting interest rates

3 Hours AgoTo view this site, you need to have JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser. Download the latest Flash player and try again. Sallie Krawcheck, Co-founder and CEO of Ellevest says the rate cuts can be good for some but bad for others.


3 Hours AgoTo view this site, you need to have JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser. Download the latest Flash player and try again. Sallie Krawcheck, Co-founder and CEO of Ellevest says the rate cuts can be good for some but bad for others.
Here’s who benefits from the Fed cutting interest rates Cached Page below :
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Here's who benefits from the Fed cutting interest rates

3 Hours Ago

To view this site, you need to have JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser. Download the latest Flash player and try again.

Sallie Krawcheck, Co-founder and CEO of Ellevest says the rate cuts can be good for some but bad for others.


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With online banks cutting interest rates, should you get a CD?

But that could be ending soon: With the Federal Reserve expected to cut interest rates, big online players, including Ally and Marcus by Goldman Sachs, are lowering their rates. The top online accounts are still offering 2.4% or more, well above the national average of 0.10%. Personal finance site NerdWallet has a CD rate tool that can help consumers compare interest rates and the fees applied to early withdrawals. NerdWallet reports that the best CD rates to be had are also at online institutio


But that could be ending soon: With the Federal Reserve expected to cut interest rates, big online players, including Ally and Marcus by Goldman Sachs, are lowering their rates. The top online accounts are still offering 2.4% or more, well above the national average of 0.10%. Personal finance site NerdWallet has a CD rate tool that can help consumers compare interest rates and the fees applied to early withdrawals. NerdWallet reports that the best CD rates to be had are also at online institutio
With online banks cutting interest rates, should you get a CD? Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: alicia adamczyk
Keywords: news, cnbc, companies, rates, cd, online, accounts, rate, cutting, mcbride, savings, months, apy, banks, interest


With online banks cutting interest rates, should you get a CD?

Online banks have been steadily raising the annual percentage yield (APY) on their savings accounts to well over 2% in an effort to gain more customers. But that could be ending soon: With the Federal Reserve expected to cut interest rates, big online players, including Ally and Marcus by Goldman Sachs, are lowering their rates. The dip is no need to panic, Greg McBride, chief financial analyst for Bankrate.com, tells CNBC Make It. The top online accounts are still offering 2.4% or more, well above the national average of 0.10%. “It’s still a good environment for savers,” says McBride. “The fact is, we’ve seen lots of competition in recent months where the rates went up.” Still, the small drop in interest rates likely isn’t worth going through the hassle of switching accounts from Ally or Marcus to a bank offering a higher APY. The rates on these savings accounts are variable, after all, and may go back up or potentially drop further.

You can lock in an APY with a CD, but you might not want to

For savers who want to avoid variable APYs, a certificate of deposit (CD) is another option. CDs lock in an interest rate that’s typically higher than the average savings account — the average APY on one-year CDs is currently 0.64% — with a few catches. For one, money deposited into a CD isn’t as easily accessible as it is in a savings account: It’s kept in the CD for a pre-determined period of time — say, three months, six months, a year or more — until it’s “matured.” And if it’s withdrawn early, a penalty is applied, usually equivalent to a few months interest. “Basically, a certificate of deposit offers a yield and has no risk,” Janet Alvarez, analyst at WalletHub, tells CNBC Make It. They are “a popular instrument among those who want to get a little extra on their cash and are willing to keep their money blocked until maturity.” If there’s a chance that you might need to use the money in your CD, compare options and choose one with the lowest penalties. Personal finance site NerdWallet has a CD rate tool that can help consumers compare interest rates and the fees applied to early withdrawals. The CDs that offer the highest APYs typically have higher minimum deposit requirements than, say, an Ally savings account, and they require longer periods of maturity. NerdWallet reports that the best CD rates to be had are also at online institutions and credit unions. As of writing, Discover offers a 5-year CD with a minimum balance of $2,500 and a APY of 2.85%, but you’ll pay 18 months worth of interest if you need to withdraw funds early. CD yields are also likely to fall ahead of a rate cut, McBride says. Banks don’t want to be locked in to paying out a higher rate than they have to for longer than they have to. And according to McBride, savers typically wouldn’t be able to find an interest rate that’s meaningfully more than what online savings accounts offer unless they opt for a four- or five-year CD. Otherwise, rates are comparable to online savings accounts, which are far more flexible. “The appeal in CDs is still pretty limited,” says McBride. “What’s the point?”

Online accounts are ideal for emergency savings


Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: alicia adamczyk
Keywords: news, cnbc, companies, rates, cd, online, accounts, rate, cutting, mcbride, savings, months, apy, banks, interest


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The trade war will be a ‘pain’ for Apple’s earnings, Nomura Instinet says, cutting estimates

Huawei’s American suppliers stumble, but it says it can survive…Huawei says that it has been preparing for the “insane” move by the U.S. to put it on the so-called “Entity List,” which means American firms need to obtain a license before…Technologyread more


Huawei’s American suppliers stumble, but it says it can survive…Huawei says that it has been preparing for the “insane” move by the U.S. to put it on the so-called “Entity List,” which means American firms need to obtain a license before…Technologyread more
The trade war will be a ‘pain’ for Apple’s earnings, Nomura Instinet says, cutting estimates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: michael sheetz
Keywords: news, cnbc, companies, cutting, trade, preparing, survivehuawei, apples, suppliers, stumble, pain, list, nomura, american, instinet, need, estimates, earnings, obtain, means, war, socalled


The trade war will be a 'pain' for Apple's earnings, Nomura Instinet says, cutting estimates

Huawei’s American suppliers stumble, but it says it can survive…

Huawei says that it has been preparing for the “insane” move by the U.S. to put it on the so-called “Entity List,” which means American firms need to obtain a license before…

Technology

read more


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: michael sheetz
Keywords: news, cnbc, companies, cutting, trade, preparing, survivehuawei, apples, suppliers, stumble, pain, list, nomura, american, instinet, need, estimates, earnings, obtain, means, war, socalled


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Amazon’s online drug push has one start-up cutting staff and selling pharmacies to help businesses compete

Nimble Pharmacy was among a crop of emerging companies, backed by venture capitalists, aiming to deliver prescription drugs from their own pharmacies to consumers’ homes or offices. Then Amazon bought online pharmacy PillPack in 2018, and Nimble needed to find a new business. That leaves independent pharmacies in a vulnerable position. Founded in 2014, Nimble has raised about $60 million from investors including Sequoia and Khosla Ventures. But Sattar said the physical pharmacies were too expens


Nimble Pharmacy was among a crop of emerging companies, backed by venture capitalists, aiming to deliver prescription drugs from their own pharmacies to consumers’ homes or offices. Then Amazon bought online pharmacy PillPack in 2018, and Nimble needed to find a new business. That leaves independent pharmacies in a vulnerable position. Founded in 2014, Nimble has raised about $60 million from investors including Sequoia and Khosla Ventures. But Sattar said the physical pharmacies were too expens
Amazon’s online drug push has one start-up cutting staff and selling pharmacies to help businesses compete Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: christina farr
Keywords: news, cnbc, companies, push, cutting, pharmacies, compete, help, independent, online, drug, delivery, walgreens, service, million, selling, startup, staff, nimble, pharmacy, physical, pillpack


Amazon's online drug push has one start-up cutting staff and selling pharmacies to help businesses compete

Nimble Pharmacy was among a crop of emerging companies, backed by venture capitalists, aiming to deliver prescription drugs from their own pharmacies to consumers’ homes or offices. Then Amazon bought online pharmacy PillPack in 2018, and Nimble needed to find a new business.

Earlier this year, the company shut down its six physical pharmacy locations, which were scattered across the Bay Area, and cut about half its staff — 40 people — to focus on developing a delivery service that could partner with independent brick-and-mortar pharmacies. To use the grocery analogy, instead of being a supermarket, Nimble would be like Instacart.

The big chain pharmacies like CVS and Walgreens are getting into delivery, and Amazon is investing heavily in PillPack following the $753 million acquisition, so that consumers can get all their medicines by mail, along with automatic refills and 24/7 customer support. That leaves independent pharmacies in a vulnerable position.

“They now recognize that the world is changing, and they’re seeing acceleration of the service from Amazon-owned PillPack, as well as Walgreens and CVS launching delivery options of their own,” said Nimble CEO Talha Sattar.

Founded in 2014, Nimble has raised about $60 million from investors including Sequoia and Khosla Ventures. It described itself as a “full-service pharmacy” taking the “hassle out of the pharmacy experience.” But Sattar said the physical pharmacies were too expensive to operate, and it was too difficult to get doctors on board.


Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: christina farr
Keywords: news, cnbc, companies, push, cutting, pharmacies, compete, help, independent, online, drug, delivery, walgreens, service, million, selling, startup, staff, nimble, pharmacy, physical, pillpack


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Trump’s bold claims about cutting red tape give Democrats a possible weapon in 2020 election

President Donald Trump is happy to boast that he slashes more regulations than any president who preceded him. He literally cut red tape in the White House in December 2017 while standing before stacks of paper representing rules. Democratic candidates aim to turn Trump’s rhetoric about regulation against him as they try to deny him a second term next year. Lacking signature achievements beyond the GOP tax law, Trump wants to attribute a strong economy — his best selling point — in part to his p


President Donald Trump is happy to boast that he slashes more regulations than any president who preceded him. He literally cut red tape in the White House in December 2017 while standing before stacks of paper representing rules. Democratic candidates aim to turn Trump’s rhetoric about regulation against him as they try to deny him a second term next year. Lacking signature achievements beyond the GOP tax law, Trump wants to attribute a strong economy — his best selling point — in part to his p
Trump’s bold claims about cutting red tape give Democrats a possible weapon in 2020 election Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-24  Authors: jacob pramuk, saul loeb, getty images, brian snyder
Keywords: news, cnbc, companies, cutting, election, rules, red, trumps, claims, weapon, big, tape, rhetoric, regulation, law, possible, regulations, bold, democrats, cut, trump, president


Trump's bold claims about cutting red tape give Democrats a possible weapon in 2020 election

President Donald Trump is happy to boast that he slashes more regulations than any president who preceded him. He literally cut red tape in the White House in December 2017 while standing before stacks of paper representing rules.

The president may want to tread carefully on the issue as the 2020 election nears. Democratic candidates aim to turn Trump’s rhetoric about regulation against him as they try to deny him a second term next year.

Trump campaigned on chopping regulations, arguing fewer rules would boost businesses and the economy. He has made some significant changes — rolling back Obama administration efforts to limit emissions from coal-burning power plants and automobiles, among other steps. The president also backed a law to scrap some bank rules passed after the 2008 financial crisis. While bank stocks took a beating in December along with the broader market, the Financial Select Sector SPDR ETF — which counts the largest U.S. banks among its top holdings — has climbed nearly 10 percent since Trump took office.

The deregulation message features prominently in his re-election rhetoric. In his State of the Union address last month, Trump claimed his administration “has cut more regulations in a short period of time than any other administration during its entire tenure.”

The president has actually done more to slow the pace of new regulations, or ease enforcement of current rules, than cut them entirely, according to several experts who track regulation. But that has not stopped both Republicans and Democrats from acting like he has taken more drastic steps to slash government rules.

Whether to put new limits on companies could become a point of conflict in the 2020 election. Lacking signature achievements beyond the GOP tax law, Trump wants to attribute a strong economy — his best selling point — in part to his push to cut regulations on businesses. At the same time, Trump’s rhetoric could boost one of Democrats’ main arguments: that the president has crafted his policy to help big business rather than consumers and the working class.

“Inflating what he’s done on the regulatory front is to his advantage,” said Cary Coglianese, a professor at the University of Pennsylvania Law School and director of its regulation program. “But on the other hand, progressives will embrace that narrative too, to paint Republicans as being in the pocket of big business, of contributing to a system that’s rigged in favor of the big banks, big insurance companies, big pharmaceutical companies.”

The argument becomes harder for Democrats to make if the economy and job market remain strong as November 2020 nears. A recent pickup in U.S. wage growth — which had previously lagged despite solid job creation — could only help Trump’s re-election case.


Company: cnbc, Activity: cnbc, Date: 2019-03-24  Authors: jacob pramuk, saul loeb, getty images, brian snyder
Keywords: news, cnbc, companies, cutting, election, rules, red, trumps, claims, weapon, big, tape, rhetoric, regulation, law, possible, regulations, bold, democrats, cut, trump, president


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Trump proposes capping federal student loans, cutting repayment options

The administration proposes capping the amount of federal student loans that parents and graduate students can borrow, citing a 2017 report from the Federal Reserve Bank of New York that argues expansion of federal student aid leads to an increase in college tuition prices. The proposal did not specify at what level federal loans would be capped. Currently, dependent undergraduate students are able to borrow up to $31,000, and independent undergraduate students can borrow up to $57,500, through


The administration proposes capping the amount of federal student loans that parents and graduate students can borrow, citing a 2017 report from the Federal Reserve Bank of New York that argues expansion of federal student aid leads to an increase in college tuition prices. The proposal did not specify at what level federal loans would be capped. Currently, dependent undergraduate students are able to borrow up to $31,000, and independent undergraduate students can borrow up to $57,500, through
Trump proposes capping federal student loans, cutting repayment options Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: abigail hess, reuters leah millis, yana paskova getty images
Keywords: news, cnbc, companies, undergraduate, students, loans, college, trump, proposes, federal, cutting, student, tuition, rising, parents, repayment, options, proposal, capping


Trump proposes capping federal student loans, cutting repayment options

The administration proposes capping the amount of federal student loans that parents and graduate students can borrow, citing a 2017 report from the Federal Reserve Bank of New York that argues expansion of federal student aid leads to an increase in college tuition prices. Progressives have contested this theory in the past, arguing that tuition prices rise even when federal aid does not, and that tuition increases are more closely correlated to cuts to state education funding.

The proposal did not specify at what level federal loans would be capped.

Currently, dependent undergraduate students are able to borrow up to $31,000, and independent undergraduate students can borrow up to $57,500, through the PLUS Loans program. There is currently no limit to the amount of federal student loans graduate students and parents can take on.

“If we’re putting limits on undergraduate students,” says Baum, “why would we not put limits on graduate students and parents also in a way that would give them access to funds but would not allow them to over borrow?”

Some fear that limiting access to credit in these ways will disproportionately impact middle- and lower-class Americans, who rely on federally-subsidized loans to earn their advanced degrees. Others say the proposal does little to address the true causes of the higher education affordability crisis.

“The White House’s proposal is a feeble attempt to claim the Trump Administration is helping students by identifying one symptom of rising student debt, while completely ignoring the root cause — that college costs are rising exponentially and most students can’t afford college without taking on massive amounts of debt,” says Senator Patty Murray, ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee in a statement. “In fact, this proposal would end up hurting students by reducing the amount of federal aid for students and taking billions out of the pockets of borrowers.”

James Kvaal, president of The Institute for College Access & Success also took issue with the proposed loan cap, and rejected the claim that the availability of loans is driving rising college costs. “The solution is to invest more in Pell scholarships for low-income students, [and] to work with states to make public colleges and universities more affordable,” Kvaal tells the Associate Press.

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Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: abigail hess, reuters leah millis, yana paskova getty images
Keywords: news, cnbc, companies, undergraduate, students, loans, college, trump, proposes, federal, cutting, student, tuition, rising, parents, repayment, options, proposal, capping


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Ford is cutting 5,000 jobs in Germany with more cuts coming for the UK

Ford is cutting 5,000 jobs in Germany and more in the U.K. as part of an effort to reduce costs in Europe, the company said Friday. The automaker offered voluntary separation packages for employees in Germany and the U.K. to help accelerate its plan to improve performance in the region, where Ford has struggled. The total number of jobs affected in the U.K. have yet to be determined. The automaker is undergoing a larger plan to restructure its operations worldwide, which it’s said will cost $11


Ford is cutting 5,000 jobs in Germany and more in the U.K. as part of an effort to reduce costs in Europe, the company said Friday. The automaker offered voluntary separation packages for employees in Germany and the U.K. to help accelerate its plan to improve performance in the region, where Ford has struggled. The total number of jobs affected in the U.K. have yet to be determined. The automaker is undergoing a larger plan to restructure its operations worldwide, which it’s said will cost $11
Ford is cutting 5,000 jobs in Germany with more cuts coming for the UK Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: robert ferris, oliver berg, picture alliance, getty images
Keywords: news, cnbc, companies, business, jobs, cuts, plans, plan, germany, cutting, coming, automaker, uk, number, vehicles, 5000, ford


Ford is cutting 5,000 jobs in Germany with more cuts coming for the UK

Ford is cutting 5,000 jobs in Germany and more in the U.K. as part of an effort to reduce costs in Europe, the company said Friday.

The automaker offered voluntary separation packages for employees in Germany and the U.K. to help accelerate its plan to improve performance in the region, where Ford has struggled. The total number of jobs affected in the U.K. have yet to be determined.

The automaker is undergoing a larger plan to restructure its operations worldwide, which it’s said will cost $11 billion. Ford is reshaping its European business into three different business groups that focus on commercial vehicles, passenger vehicles, and imports. The carmaker plans to simplify its product lines and focus on the most profitable vehicles.

Ford said in January it plans to partner with German carmaker Volkswagen on a number of initiatives, including trucks and commercial vans for markets around the world.

Europe has also been difficult for Ford’s Detroit rival General Motors sold off its European business entirely in 2017, to French automaker Groupe PSA and French banking groun BNP Paribas.


Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: robert ferris, oliver berg, picture alliance, getty images
Keywords: news, cnbc, companies, business, jobs, cuts, plans, plan, germany, cutting, coming, automaker, uk, number, vehicles, 5000, ford


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Ford is cutting 5,000 jobs in Germany with more cuts coming for the UK

Ford is cutting 5,000 jobs in Germany and more in the U.K. as part of an effort to reduce costs in Europe, the company said Friday. The automaker offered voluntary separation packages for employees in Germany and the U.K. to help accelerate its plan to improve performance in the region, where Ford has struggled. The total number of jobs affected in the U.K. have yet to be determined. The automaker is undergoing a larger plan to restructure its operations worldwide, which it’s said will cost $11


Ford is cutting 5,000 jobs in Germany and more in the U.K. as part of an effort to reduce costs in Europe, the company said Friday. The automaker offered voluntary separation packages for employees in Germany and the U.K. to help accelerate its plan to improve performance in the region, where Ford has struggled. The total number of jobs affected in the U.K. have yet to be determined. The automaker is undergoing a larger plan to restructure its operations worldwide, which it’s said will cost $11
Ford is cutting 5,000 jobs in Germany with more cuts coming for the UK Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: robert ferris, oliver berg, picture alliance, getty images
Keywords: news, cnbc, companies, business, jobs, cuts, plans, plan, germany, cutting, coming, automaker, uk, number, vehicles, 5000, ford


Ford is cutting 5,000 jobs in Germany with more cuts coming for the UK

Ford is cutting 5,000 jobs in Germany and more in the U.K. as part of an effort to reduce costs in Europe, the company said Friday.

The automaker offered voluntary separation packages for employees in Germany and the U.K. to help accelerate its plan to improve performance in the region, where Ford has struggled. The total number of jobs affected in the U.K. have yet to be determined.

The automaker is undergoing a larger plan to restructure its operations worldwide, which it’s said will cost $11 billion. Ford is reshaping its European business into three different business groups that focus on commercial vehicles, passenger vehicles, and imports. The carmaker plans to simplify its product lines and focus on the most profitable vehicles.

Ford said in January it plans to partner with German carmaker Volkswagen on a number of initiatives, including trucks and commercial vans for markets around the world.

Europe has also been difficult for Ford’s Detroit rival General Motors sold off its European business entirely in 2017, to French automaker Groupe PSA and French banking groun BNP Paribas.


Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: robert ferris, oliver berg, picture alliance, getty images
Keywords: news, cnbc, companies, business, jobs, cuts, plans, plan, germany, cutting, coming, automaker, uk, number, vehicles, 5000, ford


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Cramer Remix: Kraft Heinz’s double-digit dive was a long time coming

Coming off of a tumultuous week, Kraft Heinz could be due for another dividend cut, CNBC’s Jim Cramer warned viewers Monday, calling it “pure baloney.” After Kraft and Heinz merged in 2015, the stock was nearly $73—now its about $34, a 52 percent decline at a time that most food stock are down about 1 percent, Cramer said. “Eight different firms downgraded the stock from buy to hold as they finally recognized that management’s strategy—making big acquisitions then cutting costs—just isn’t workin


Coming off of a tumultuous week, Kraft Heinz could be due for another dividend cut, CNBC’s Jim Cramer warned viewers Monday, calling it “pure baloney.” After Kraft and Heinz merged in 2015, the stock was nearly $73—now its about $34, a 52 percent decline at a time that most food stock are down about 1 percent, Cramer said. “Eight different firms downgraded the stock from buy to hold as they finally recognized that management’s strategy—making big acquisitions then cutting costs—just isn’t workin
Cramer Remix: Kraft Heinz’s double-digit dive was a long time coming Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: tyler clifford, mandel ngan, nicolas asfouri, afp, getty images, javier larrea, jonathan wolff, wikipedia cc, eric piermont
Keywords: news, cnbc, companies, stock, cramer, dive, heinzs, long, heinz, picking, company, kraft, remix, food, costs, coming, host, doubledigit, cutting


Cramer Remix: Kraft Heinz's double-digit dive was a long time coming

Coming off of a tumultuous week, Kraft Heinz could be due for another dividend cut, CNBC’s Jim Cramer warned viewers Monday, calling it “pure baloney.”

Investors once loved its cost-cutting strategies on top of Warren Buffett’s large stake in the company, but the “Mad Money” host said Wall Street’s “reverence” turned to “revulsion” after it announced a $15 billion write down and lost 27 percent of value last Friday.

After Kraft and Heinz merged in 2015, the stock was nearly $73—now its about $34, a 52 percent decline at a time that most food stock are down about 1 percent, Cramer said.

“Great bloodlines only get you so far. We’re picking stocks here, we’re not picking ponies,” he said. “Eight different firms downgraded the stock from buy to hold as they finally recognized that management’s strategy—making big acquisitions then cutting costs—just isn’t working.”

Cramer said there’s a chance for Kraft Heinz to find new life, but it would be expensive especially for a company that is cutting costs. Additionally, many of its products like Jell-O, Miracle Whip, and Kool-Aid are outdated, he said. Millennials, the host said, prefer buying fresh and organic food and that’s a big reason that Kraft Heinz and frozen food companies are losing pricing power.

“So the company’s up against an unholy trinity here: they need to spend to support their brands, their raw costs are going up—something mentioned repeatedly on the call—and the consumer is turning against them,” Cramer said.

Listen to Cramer’s full analysis here.


Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: tyler clifford, mandel ngan, nicolas asfouri, afp, getty images, javier larrea, jonathan wolff, wikipedia cc, eric piermont
Keywords: news, cnbc, companies, stock, cramer, dive, heinzs, long, heinz, picking, company, kraft, remix, food, costs, coming, host, doubledigit, cutting


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