Gold climbs on Fed rate cut speculation, growth concerns

Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards. Gold prices gained momentum on Wednesday as the dollar dipped on speculation the U.S. central bank would cut interest rates this year amid concerns about waning global economic growth. U.S. gold futures were up 0.4% to $1,336.60 per ounce. Adding to concerns, U.S. consumer prices barely rose in May, likely increasing pressure on the Fed to cut interest rates this year. Lower interest rates make safe-haven asse


Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards. Gold prices gained momentum on Wednesday as the dollar dipped on speculation the U.S. central bank would cut interest rates this year amid concerns about waning global economic growth. U.S. gold futures were up 0.4% to $1,336.60 per ounce. Adding to concerns, U.S. consumer prices barely rose in May, likely increasing pressure on the Fed to cut interest rates this year. Lower interest rates make safe-haven asse
Gold climbs on Fed rate cut speculation, growth concerns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12
Keywords: news, cnbc, companies, session, climbs, speculation, rate, fed, concerns, rates, gold, cut, trading, futures, dollar, higher, ounce, growth, interest


Gold climbs on Fed rate cut speculation, growth concerns

Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards.

Gold prices gained momentum on Wednesday as the dollar dipped on speculation the U.S. central bank would cut interest rates this year amid concerns about waning global economic growth.

Spot gold was trading 0.5% higher at $1,332.80 per ounce, a rebound from the previous session when it fell to a 10-day low of $1,319.35.

U.S. gold futures were up 0.4% to $1,336.60 per ounce.

“Today, global equities are weaker, there is some safe-haven buying, and buying ahead of the U.S. Fed meeting next week,” said Bob Haberkorn, senior market strategist at RJO Futures.

“If the Fed cuts rates in June, youre going to see some substantial gains here in the precious metals market … People are trying to get ahead of that and add some gold to their portfolio.”

Global equities snapped a seven-day winning streak after U.S. President Donald Trump said he had no interest in moving ahead with a trade deal with China unless Beijing agreed to four or five “major points.”

Adding to concerns, U.S. consumer prices barely rose in May, likely increasing pressure on the Fed to cut interest rates this year.

Fed policymakers will meet on June 18-19. Markets have priced in at least two U.S. rate cuts by the end of 2019. Futures imply around an 80% chance of a rate cut as early as July.

Lower interest rates make safe-haven assets such as gold, which does not yield interest, more attractive while weighing on the dollar. The U.S. currency was trading largely unchanged against a basket of currencies on Wednesday.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell marginally to 756.18 tonnes on Tuesday from 756.42 tonnes on Monday.

The gold bulls have the overall near-term technical advantage and regained momentum today, ” Jim Wyckoff, senior analyst at Kitco, said in a note. He added that the next upside price target would be a close in August futures above June’s high of $1,352.70.

Among other metals, silver was up 0.6% to $14.79 per ounce, while platinum inched 0.2% higher to $814.50.

Palladium was little changed at $1,394.30 per ounce, having hit a six-week high of $1,404 earlier in the session. The autocatalyst metal was trading higher for a fifth consecutive session.


Company: cnbc, Activity: cnbc, Date: 2019-06-12
Keywords: news, cnbc, companies, session, climbs, speculation, rate, fed, concerns, rates, gold, cut, trading, futures, dollar, higher, ounce, growth, interest


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

‘Perfect storm’ for dollar as bets on US rate cuts grow

The dollar fell on Wednesday as rising trade tensions between Washington and Beijing and growing bets on a U.S. interest rate cut sapped investor demand for the currency. A Fed watch tool by CME assigns a 18% probability of a U.S. rate cut next week and a 68% probability of a cut in July. “This is a perfect storm for the dollar, and that is also undermining risk appetite broadly in the market,” said Ricardo Evangelista, a senior analyst at ActivTrades in London. It also weakened against the Hong


The dollar fell on Wednesday as rising trade tensions between Washington and Beijing and growing bets on a U.S. interest rate cut sapped investor demand for the currency. A Fed watch tool by CME assigns a 18% probability of a U.S. rate cut next week and a 68% probability of a cut in July. “This is a perfect storm for the dollar, and that is also undermining risk appetite broadly in the market,” said Ricardo Evangelista, a senior analyst at ActivTrades in London. It also weakened against the Hong
‘Perfect storm’ for dollar as bets on US rate cuts grow Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12
Keywords: news, cnbc, companies, grow, rate, fed, bets, cut, market, trade, storm, dollar, probability, weekthe, perfect, global, local, cuts


'Perfect storm' for dollar as bets on US rate cuts grow

The dollar fell on Wednesday as rising trade tensions between Washington and Beijing and growing bets on a U.S. interest rate cut sapped investor demand for the currency.

Against a basket of other currencies, the dollar edged 0.1 percent lower to 96.64 and just above a two-and-a-half-month low of 96.46 reached last week.

The dollar has suffered a setback after the latest escalation of the U.S.-China trade, which analysts fear could tip the global economy into recession.

Those fears have grown as recent data have pointed to a global economic slowdown. Chinese factory inflation slowed in May and Fed officials have become increasingly cautious. That has fuelled expectations of U.S. rate cuts, a shift from a few months.

A Fed watch tool by CME assigns a 18% probability of a U.S. rate cut next week and a 68% probability of a cut in July.

“This is a perfect storm for the dollar, and that is also undermining risk appetite broadly in the market,” said Ricardo Evangelista, a senior analyst at ActivTrades in London.

The dollar slipped as much as 0.2% against the pound, taking its losses to nearly 1% so far this month.

It also weakened against the Hong Kong dollar, which rose towards the midpoint of a daily trading range as bond auctions and large listings in the local stock market sucked cash from the local market.

The local dollar also strengthened as the city was roiled by violent protests against an extradition bill that would allow people to be sent to mainland China.


Company: cnbc, Activity: cnbc, Date: 2019-06-12
Keywords: news, cnbc, companies, grow, rate, fed, bets, cut, market, trade, storm, dollar, probability, weekthe, perfect, global, local, cuts


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

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

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


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


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

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

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

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

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

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

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


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


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Salesforce is paying top dollar for growth — and not just in the cloud

SaaSy, as Salesforce named the mascot, represented the evolution from traditional software to the cloud and helped distinguish Salesforce from older companies like Oracle. On Monday, the company announced the biggest deal in its 20-year history, agreeing to purchase data visualization company Tableau Software for $15.3 billion. Tableau is not a cloud company. But there’s a clear recognition at Salesforce that data is the valuable asset, and data lives all over the place. Salesforce, the cloud ev


SaaSy, as Salesforce named the mascot, represented the evolution from traditional software to the cloud and helped distinguish Salesforce from older companies like Oracle. On Monday, the company announced the biggest deal in its 20-year history, agreeing to purchase data visualization company Tableau Software for $15.3 billion. Tableau is not a cloud company. But there’s a clear recognition at Salesforce that data is the valuable asset, and data lives all over the place. Salesforce, the cloud ev
Salesforce is paying top dollar for growth — and not just in the cloud Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-10  Authors: jordan novet ari levy, jordan novet, ari levy
Keywords: news, cnbc, companies, billion, deal, company, mulesoft, paying, companys, cloud, dollar, tableau, software, salesforce, growth, data


Salesforce is paying top dollar for growth — and not just in the cloud

Marc Benioff, co-CEO of Salesforce, center left, and Angela Ahrendts, then CEO of Burberry Group, center right, take part in ringing the closing bell for the New York Stock Exchange during the DreamForce conference in San Francisco on Aug. 31, 2011.

When Salesforce was first seeking public attention almost two decades ago, it created a mascot that consisted of the word “software” in bold letters on a prohibition sign — surrounded by a red circle with a line through it.

SaaSy, as Salesforce named the mascot, represented the evolution from traditional software to the cloud and helped distinguish Salesforce from older companies like Oracle. That’s where co-founder and co-CEO Marc Benioff got his start selling software that businesses installed and ran in their own data centers.

But in the past 15 months, Salesforce has made two huge acquisitions, totaling $21.8 billion, that complicate its no software message. On Monday, the company announced the biggest deal in its 20-year history, agreeing to purchase data visualization company Tableau Software for $15.3 billion.

Tableau is not a cloud company. Its products run primarily in on-premises data centers, with over one-third of deployments in the cloud, CEO Adam Selipsky said on the call with analysts after the deal was announced. Similarly, in March 2018, Salesforce spent $6.5 billion on MuleSoft, whose software connects data that’s stored in all sorts of places, regardless of whether it’s running in the company’s data centers or if it’s hosted elsewhere.

It all speaks to Benioff’s big challenge. Now that Salesforce is generating over $13 billion a year in revenue, with expectations to top $16 billion in fiscal 2020 and reach up to $28 billion three years later, the company has to seek growth beyond pure cloud plays. MuleSoft and Tableau are both high-growth businesses with many customers that also use Salesforce, and because Salesforce executives spend so much time surveying the company’s client base, they know which other technologies get rave reviews.

On Monday’s call, Benioff called Tableau a “jewel in our industry” and said “our customers are looking to do a lot more in this area” in terms of integrating the software across Salesforce’s products.

“There really was no argument that said, ‘If you want to do analytics in a meaningful way, the only way you can do it is in the cloud,'” said Mike Capone, CEO of Qlik, a Tableau rival that was acquired by private equity firm Thoma Bravo in 2016. “I think Salesforce made a big admission to that today.”

SaaSy still makes the occasional appearance for Salesforce on the exhibition floor at conferences and on Twitter.

But there’s a clear recognition at Salesforce that data is the valuable asset, and data lives all over the place. MuleSoft works with companies that for a variety of reasons don’t have all their data in the cloud. They could be in highly regulated industries like finance or health care or they may be large enterprises that are slowly migrating over.

Tableau was founded in 2003, three years before Amazon introduced its cloud infrastructure offering. Even before that, the founders were working on data visualization at Stanford. Last year, Tableau introduced a new set of subscription offerings, recognizing the transition in how software is being consumed, and announced that the products would be available on premises or in clouds run by Amazon, Google or Microsoft.

Salesforce, the cloud evangelist, is showing a willingness to accept hybrid companies that have access to critical business data.

“Getting the data, integrating the data and analyzing the data is what’s going to win the war,” said Ted Smith, a partner at tech investment bank Union Square Advisors in San Francisco. Salesforce is saying, “If I have to reach down and take assets that today are not exclusively in the cloud in order to win that part of the critical war, on balance I’ll do that,” he said.

Benioff said on Monday’s call that the company’s strategy related to organic and inorganic growth hasn’t changed.

“To be honest with you, we’re excited to go to get a deal done when we can get a deal done,” he told analysts.


Company: cnbc, Activity: cnbc, Date: 2019-06-10  Authors: jordan novet ari levy, jordan novet, ari levy
Keywords: news, cnbc, companies, billion, deal, company, mulesoft, paying, companys, cloud, dollar, tableau, software, salesforce, growth, data


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The multi-billion dollar search deal between Google and Apple took four months working ‘every single day’

Tim Cook participates in a panel discussion during the TIME 100 Summit 2019 on April 23, 2019 in New York City. Google pays Apple billions of dollars to be the default search engine in the Safari browser on iPhones and Mac computers. A deal like that doesn’t come together overnight, and a new interview with Apple’s former general counsel Bruce Sewell reveals just how involved the most senior levels of both companies were hammering out the details. “The Google negotiation for example, between App


Tim Cook participates in a panel discussion during the TIME 100 Summit 2019 on April 23, 2019 in New York City. Google pays Apple billions of dollars to be the default search engine in the Safari browser on iPhones and Mac computers. A deal like that doesn’t come together overnight, and a new interview with Apple’s former general counsel Bruce Sewell reveals just how involved the most senior levels of both companies were hammering out the details. “The Google negotiation for example, between App
The multi-billion dollar search deal between Google and Apple took four months working ‘every single day’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-10  Authors: kif leswing
Keywords: news, cnbc, companies, interview, 2019, deal, york, apple, single, search, google, dollar, youtube, university, working, took, months, sewell, day, multibillion


The multi-billion dollar search deal between Google and Apple took four months working 'every single day'

Tim Cook participates in a panel discussion during the TIME 100 Summit 2019 on April 23, 2019 in New York City.

Google pays Apple billions of dollars to be the default search engine in the Safari browser on iPhones and Mac computers.

A deal like that doesn’t come together overnight, and a new interview with Apple’s former general counsel Bruce Sewell reveals just how involved the most senior levels of both companies were hammering out the details.

“The Google negotiation for example, between Apple and Google over search, probably took us four months,” Sewell said in an interview with Columbia University law students posted to YouTube.


Company: cnbc, Activity: cnbc, Date: 2019-06-10  Authors: kif leswing
Keywords: news, cnbc, companies, interview, 2019, deal, york, apple, single, search, google, dollar, youtube, university, working, took, months, sewell, day, multibillion


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dollar hovers near 7-week low on Fed rate cut prospect

The dollar struggled near seven-week lows on Wednesday after U.S. central bank officials hinted at the possibility of an interest rate cut in the face of rising risks to trade and global growth. The Fed chairman’s comments came a day after St. Louis Federal Reserve President James Bullard said in a speech that a rate cut may be needed “soon.” Last month, New Zealand’s central bank cut its benchmark interest rate for the first time in two-and-a-half years as it moved to support a cooling economy


The dollar struggled near seven-week lows on Wednesday after U.S. central bank officials hinted at the possibility of an interest rate cut in the face of rising risks to trade and global growth. The Fed chairman’s comments came a day after St. Louis Federal Reserve President James Bullard said in a speech that a rate cut may be needed “soon.” Last month, New Zealand’s central bank cut its benchmark interest rate for the first time in two-and-a-half years as it moved to support a cooling economy
Dollar hovers near 7-week low on Fed rate cut prospect Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05
Keywords: news, cnbc, companies, dollar, near, fed, economy, rates, hovers, rate, prospect, cut, 7week, interest, bank, central, global, low


Dollar hovers near 7-week low on Fed rate cut prospect

The dollar struggled near seven-week lows on Wednesday after U.S. central bank officials hinted at the possibility of an interest rate cut in the face of rising risks to trade and global growth.

Federal Reserve Chairman Jerome Powell dropped his standard reference to the Fed being “patient” in approaching any rate decision on Tuesday, saying instead the central bank will respond as “as appropriate” to trade pressure.

The dollar index against a basket of six peers was last flat at 97.077, within reach of a recent low of 96.995 brushed overnight – its lowest since April 18. It has now fallen 1.3% from a more than two-year high of 98.371 touched on May 23.

Masafumi Yamamoto, chief currency strategist at Mizuho Securities, said major currencies barely reacted to Powell’s comments as investors had already priced in several rate cuts by the Fed on the back of the shifting global growth outlook.

The Fed chairman’s comments came a day after St. Louis Federal Reserve President James Bullard said in a speech that a rate cut may be needed “soon.”

Rate cuts by some central banks in recent weeks could potentially signal the start of a global monetary easing cycle to stave off a sharper economic downturn.

“Central banks across the globe are adopting a dovish tone. It’s kind of a preemptive move,” said Yamamoto.

“It doesn’t necessarily mean that the economy is worsening – rather the outlook worsened. It’s mainly related to the trade tensions between the U.S. and China and the U.S. and Mexico.”

Australia’s central bank on Tuesday slashed benchmark cash rates to a record low of 1.25% and signalled willingness to go further if the worsening outlook persists.

Last month, New Zealand’s central bank cut its benchmark interest rate for the first time in two-and-a-half years as it moved to support a cooling economy and counter global uncertainties.

In South Korea, its central bank last week kept policy settings unchanged but adopted a more accommodative tone while India is expected to cut rates at its policy meeting on Thursday.

On Wednesday, the Australian dollar rose 0.15% to $0.7000 despite data showing growth in the Australian economy picked up only modestly in the first quarter while the annual pace was at its slowest in a decade.

The A$1.9 trillion ($1.3 trillion) economy expanded 0.4% in the three months ended March, while annual GDP rose 1.8%, the weakest since the global financial crisis.

The New Zealand dollar was in the spotlight after a senior official of the Reserve Bank of New Zealand was quoted as saying the central bank’s central view was that interest rates would remain broadly around current levels for the foreseeable future.

The kiwi was last up 0.3% at $0.6629, having brushed a one-month low earlier in the session.

Against the yen, the dollar edged down 0.02% to 108.125 yen per dollar, within striking distance of a near five-month high of 107.845 – its highest since Jan. 10 – hit during the previous session.

Minori Uchida, chief currency analyst at MUFG Bank, said the yen was likely to be supported for the time being as a U.S. rate cut would likely signal further weakness in the global economy.

“The dollar will lose some of its strength if interest rates will actually be cut in the United States,” said Uchida.

“Japanese interest rates are already at such a low level that they are unlikely to be cut any further. Rate differentials are likely to get smaller if other countries conduct monetary easing,” he said.

The euro was up 0.1% at $1.1260, extending its gains to a fourth session.


Company: cnbc, Activity: cnbc, Date: 2019-06-05
Keywords: news, cnbc, companies, dollar, near, fed, economy, rates, hovers, rate, prospect, cut, 7week, interest, bank, central, global, low


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The yuan is creeping toward 7 against the dollar, and that could be a problem for some Chinese firms

Investors have been keeping a close watch on the Chinese yuan, seen as a key indicator amid the intensifying U.S.-China trade war — and much concern has been centered on whether it will breach the 7 yuan per dollar key level. A weaker yuan makes Chinese exports more attractive, giving them a competitive advantage in international markets, some experts argue. While a weaker yuan would offset the costs of higher tariffs, there are also disadvantages, Goh told CNBC on Thursday. Ripple effectOther a


Investors have been keeping a close watch on the Chinese yuan, seen as a key indicator amid the intensifying U.S.-China trade war — and much concern has been centered on whether it will breach the 7 yuan per dollar key level. A weaker yuan makes Chinese exports more attractive, giving them a competitive advantage in international markets, some experts argue. While a weaker yuan would offset the costs of higher tariffs, there are also disadvantages, Goh told CNBC on Thursday. Ripple effectOther a
The yuan is creeping toward 7 against the dollar, and that could be a problem for some Chinese firms Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: weizhen tan
Keywords: news, cnbc, companies, chinese, problem, costs, key, firms, dollar, creeping, currency, weaker, weakening, large, yuan, china, markets


The yuan is creeping toward 7 against the dollar, and that could be a problem for some Chinese firms

Investors have been keeping a close watch on the Chinese yuan, seen as a key indicator amid the intensifying U.S.-China trade war — and much concern has been centered on whether it will breach the 7 yuan per dollar key level. While that’s been said to be simply a psychological level, markets may react if the yuan falls below 7, leading to real economic costs for China as well as its companies, experts said. The yuan has been testing those levels increasingly, as the trade war between the world’s two largest economies deteriorated in recent weeks.

What a weak yuan does

A weaker yuan has been a key source of contention between U.S. and the China, with President Donald Trump accusing Beijing of intentionally letting its currency slide lower. A weaker yuan makes Chinese exports more attractive, giving them a competitive advantage in international markets, some experts argue. However, a rapidly weakening currency could also lead investors to move their money out of China, analysts warned, although they said Beijing could respond by imposing tighter capital controls — or measures aimed at limiting the outflow of foreign capital. J.P. Morgan’s Chief China Economist Zhu Haibin cited a similar occurrence in 2015, where fears of a weakening yuan hit market sentiment and led to large capital outflows.

The currency slide would also hurt Chinese firms, as well as the country’s push for greater use of the yuan internationally, according to Khoon Goh, head of Asia research at ANZ Bank. While a weaker yuan would offset the costs of higher tariffs, there are also disadvantages, Goh told CNBC on Thursday. “Don’t forget, there are also economic costs in a weaker renminbi,” he said, referring to another name for the Chinese currency. “A lot of Chinese firms still have large U.S dollar-denominated debt, which is not hedged. That will get them in trouble. ”

Ripple effect

Other analysts have warned that a weakening yuan could also hurt other Asian economies. Arthur Lau, co-head of emerging markets fixed income at PineBridge Investments, said a weakened yuan could hit regional currencies and lead to higher costs for those who hold dollar-denominated bonds. “A weakening yuan could weigh on currencies in the region. Weaker local currencies imply higher debt servicing cost for US dollar bonds,” he said in a note. Lau added that some Chinese property developers, for instance, had a “relatively large” percentage of foreign currency debts as compared to other sectors.

Risks to yuan’s internationalization


Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: weizhen tan
Keywords: news, cnbc, companies, chinese, problem, costs, key, firms, dollar, creeping, currency, weaker, weakening, large, yuan, china, markets


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Costco is looking at alternative sourcing and price hikes as tariffs loom

Costco Wholesale on Thursday reported quarterly profit and revenue that beat Wall Street estimates and said it would tackle the proposed round of tariffs on Chinese imports by sourcing goods from other countries and possible price increases. The warehouse club operator is the latest American retailer to warn of tariff hit, after dollar store chains Dollar Tree and Dollar General, earlier in the day, said rising tariffs would impact their businesses and consumers. Costco’s Chief Financial Officer


Costco Wholesale on Thursday reported quarterly profit and revenue that beat Wall Street estimates and said it would tackle the proposed round of tariffs on Chinese imports by sourcing goods from other countries and possible price increases. The warehouse club operator is the latest American retailer to warn of tariff hit, after dollar store chains Dollar Tree and Dollar General, earlier in the day, said rising tariffs would impact their businesses and consumers. Costco’s Chief Financial Officer
Costco is looking at alternative sourcing and price hikes as tariffs loom Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: fred imbert, sam meredith, eustance huang
Keywords: news, cnbc, companies, alternative, price, tariffs, sourcing, hikes, impact, wholesale, warehouse, dollar, galanti, looking, warn, costco, loom, whats, day, prices


Costco is looking at alternative sourcing and price hikes as tariffs loom

Costco Wholesale on Thursday reported quarterly profit and revenue that beat Wall Street estimates and said it would tackle the proposed round of tariffs on Chinese imports by sourcing goods from other countries and possible price increases.

The warehouse club operator is the latest American retailer to warn of tariff hit, after dollar store chains Dollar Tree and Dollar General, earlier in the day, said rising tariffs would impact their businesses and consumers.

Costco’s Chief Financial Officer Richard Galanti, on a post-earnings call with analysts, said the situation is “pretty fluid” and the company is looking to accelerate shipments before certain tariffs are put into effect.

“At the end of the day, prices will go up on things. What’s interesting is that it’s hard to predict what the impact is,” Galanti said.

“We want to be the last to raise them. And when prices are going down, we want to be the first to lower them. We’re not afraid to use some of those monies to again drive business.”


Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: fred imbert, sam meredith, eustance huang
Keywords: news, cnbc, companies, alternative, price, tariffs, sourcing, hikes, impact, wholesale, warehouse, dollar, galanti, looking, warn, costco, loom, whats, day, prices


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold rebounds to 2-week peak as US data boosts Fed rate cut hopes

Gold shook off headwinds from a stronger dollar to scale a near two-week peak on Thursday as data pointed to easing inflationary pressure in the United States, boosting expectations of a further interest rate cut by the Federal Reserve. Spot gold gained 0.6% to $1,287.80 per ounce, having hit a high of $1,288.87 earlier, its highest since May 17. Gold also shrugged off initial pressure from a stronger dollar, with the U.S. unit hovering within striking distance of a two-year high against a baske


Gold shook off headwinds from a stronger dollar to scale a near two-week peak on Thursday as data pointed to easing inflationary pressure in the United States, boosting expectations of a further interest rate cut by the Federal Reserve. Spot gold gained 0.6% to $1,287.80 per ounce, having hit a high of $1,288.87 earlier, its highest since May 17. Gold also shrugged off initial pressure from a stronger dollar, with the U.S. unit hovering within striking distance of a two-year high against a baske
Gold rebounds to 2-week peak as US data boosts Fed rate cut hopes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-30
Keywords: news, cnbc, companies, near, rate, rebounds, stronger, data, dollar, 2week, boosts, previously, market, strategist, peak, cut, pressure, fed, hopes, gold, quarter


Gold rebounds to 2-week peak as US data boosts Fed rate cut hopes

Gold shook off headwinds from a stronger dollar to scale a near two-week peak on Thursday as data pointed to easing inflationary pressure in the United States, boosting expectations of a further interest rate cut by the Federal Reserve.

Spot gold gained 0.6% to $1,287.80 per ounce, having hit a high of $1,288.87 earlier, its highest since May 17.

The metal reversed course from earlier in the session, when it fell to its lowest level since May 23 at $1,274.44.

U.S. gold futures settled up $6.10 at $1,292.40.

While data showed strong growth in gross domestic product in the first quarter, a gauge of inflation tracked by the Federal Reserve increased at a 1.0% rate last quarter, instead of the previously reported 1.3% pace. Manufacturing, retail sales, housing and exports also dropped in April.

Fed policymakers are likely to shrug off the last quarter’s growth spurt and focus on the weak domestic demand and inflation when they meet next month.

“The core PCE came in weaker than expected and is helping gold on the margin since it reaffirms this market’s belief that the next move from the Fed is a cut, which tends to lower the opportunity cost for holding non-cash flow yielding assets like gold,” said Daniel Ghali, commodity strategist at TD Securities.

Gold also shrugged off initial pressure from a stronger dollar, with the U.S. unit hovering within striking distance of a two-year high against a basket of major currencies.

“Gold has held up a lot better than expected with the recent strength in the dollar and that’s a major feather in the cap of the gold market in the near term,” said John Caruso, senior market strategist at RJO Futures.

The dollar has been used as the preferred hedge against trade tensions, repeating a trend seen last year.

“Short-term resistances (for gold) to watch include $1,280, $1,285 and $1,293, levels which were previously support. We would only turn bullish again on gold should it rise back above that $1,300 hurdle and stay above it, or print a bullish reversal at lower levels first,” Fawad Razaqzada, market analyst with Forex.com, wrote in a note.

Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.5% to 740.86 tonnes on Wednesday.


Company: cnbc, Activity: cnbc, Date: 2019-05-30
Keywords: news, cnbc, companies, near, rate, rebounds, stronger, data, dollar, 2week, boosts, previously, market, strategist, peak, cut, pressure, fed, hopes, gold, quarter


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dollar near flat, heading for fourth straight month of gains

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


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


Dollar near flat, heading for fourth straight month of gains

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

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

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

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

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

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

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

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

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

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

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

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

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


Company: cnbc, Activity: cnbc, Date: 2019-05-30
Keywords: news, cnbc, companies, near, yen, greenback, currencies, dollar, euro, fourth, week, heading, worries, gains, straight, month, lower, flat, trade


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post