Oil treads water amid expected OPEC cuts, gloomy economic outlook

Oil markets lost steam on Tuesday, giving back earlier gains, as a deteriorating economic outlook and a surge in U.S. production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries (OPEC). Brent crude oil futures, the international benchmark for oil prices, were at $66.55 a barrel at 0313 GMT, down 24 cents, or 0.4 percent from their last close. U.S. crude oil production has soared by almost 25 percent this year, to a record 11.7 million barrels per day (bpd)


Oil markets lost steam on Tuesday, giving back earlier gains, as a deteriorating economic outlook and a surge in U.S. production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries (OPEC). Brent crude oil futures, the international benchmark for oil prices, were at $66.55 a barrel at 0313 GMT, down 24 cents, or 0.4 percent from their last close. U.S. crude oil production has soared by almost 25 percent this year, to a record 11.7 million barrels per day (bpd)
Oil treads water amid expected OPEC cuts, gloomy economic outlook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, markets, outlook, water, cuts, million, opec, production, treads, economic, supply, record, expected, amid, recent, oil, barrels, gloomy, crude


Oil treads water amid expected OPEC cuts, gloomy economic outlook

Oil markets lost steam on Tuesday, giving back earlier gains, as a deteriorating economic outlook and a surge in U.S. production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries (OPEC).

Brent crude oil futures, the international benchmark for oil prices, were at $66.55 a barrel at 0313 GMT, down 24 cents, or 0.4 percent from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $57.07 per barrel, 13 cents, or 0.2 percent, below their last settlement.

Oil prices are almost a quarter below their recent peaks in early October, weighed down by surging supply, especially from the United States.

U.S. crude oil production has soared by almost 25 percent this year, to a record 11.7 million barrels per day (bpd).

This comes amid widespread market expectations of an economic slowdown, which saw Asian stock markets tumble on Tuesday, adding to sharp losses on Wall Street during the previous day.

As a result, financial traders have become wary of oil markets, seeing further price downside risks from the soaring U.S. shale production as well as the deteriorating economic outlook.

Portfolio managers have sold the equivalent of 553 million barrels of crude and fuels in the last seven weeks, the largest reduction over a comparable period since at least 2013.

Funds now hold a net long position of just 547 million barrels, less than half the recent peak of 1.1 billion at the end of September, and down from a record 1.484 billion in January.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, markets, outlook, water, cuts, million, opec, production, treads, economic, supply, record, expected, amid, recent, oil, barrels, gloomy, crude


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

US Treasury yields move lower as investors await economic data, auctions

The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 3.3048 percent, while the yield on the 30-year Treasury bond was also lower at 3.0464 percent. It comes after sharp losses on Wall Street in the previous session, with technology firms tumbling amid concerns about softening demand. On Tuesday morning, the U.S. dollar was little changed from the previous session, trading at 96.346 against a basket of major currencies. On the data front, investors


The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 3.3048 percent, while the yield on the 30-year Treasury bond was also lower at 3.0464 percent. It comes after sharp losses on Wall Street in the previous session, with technology firms tumbling amid concerns about softening demand. On Tuesday morning, the U.S. dollar was little changed from the previous session, trading at 96.346 against a basket of major currencies. On the data front, investors
US Treasury yields move lower as investors await economic data, auctions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: sam meredith
Keywords: news, cnbc, companies, investors, treasury, little, session, await, previous, auctions, lower, bills, billion, yield, economic, yields, data, dollar


US Treasury yields move lower as investors await economic data, auctions

The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 3.3048 percent, while the yield on the 30-year Treasury bond was also lower at 3.0464 percent.

It comes after sharp losses on Wall Street in the previous session, with technology firms tumbling amid concerns about softening demand.

In addition to the drop in U.S. stocks, a weakening U.S. dollar did little to alleviate souring market sentiment.

Weaker-than-anticipated economic data on Monday sapped confidence from the greenback, while oil prices fell yet again despite expectations of supply cuts from OPEC early next month.

On Tuesday morning, the U.S. dollar was little changed from the previous session, trading at 96.346 against a basket of major currencies.

On the data front, investors will be watching for U.S. Housing Starts and Philly Fed non-manufacturing figures at around 8:30 a.m. ET.

Meanwhile, the U.S. Treasury is set to auction $50 billion in four-week bills and $30 billion in eight-week bills on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: sam meredith
Keywords: news, cnbc, companies, investors, treasury, little, session, await, previous, auctions, lower, bills, billion, yield, economic, yields, data, dollar


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Bad sign for Trump 2020: Voters like the economy, but don’t like him

Voters largely believe Trump has handled the economy well, but the president rarely goes higher than 45 percent in approval rating polls. Pockets of Wall Street have started to forecast more sluggish economic growth in the near future. JPMorgan economists also anticipate economic growth will take a hit next year, slowing to a pace of 1.9 percent for 2019. Electoral expert and forecaster Nate Silver of FiveThirtyEight believes the prospect of a downturn poses risks for Trump in 2020. Of course, t


Voters largely believe Trump has handled the economy well, but the president rarely goes higher than 45 percent in approval rating polls. Pockets of Wall Street have started to forecast more sluggish economic growth in the near future. JPMorgan economists also anticipate economic growth will take a hit next year, slowing to a pace of 1.9 percent for 2019. Electoral expert and forecaster Nate Silver of FiveThirtyEight believes the prospect of a downturn poses risks for Trump in 2020. Of course, t
Bad sign for Trump 2020: Voters like the economy, but don’t like him Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: jacob pramuk, joshua roberts
Keywords: news, cnbc, companies, approval, economy, trumps, voters, economic, trump, growth, won, silver, presidents, sign, bad, dont, 2020, president


Bad sign for Trump 2020: Voters like the economy, but don't like him

Democrats will win the House. Here’s how it could impact Trump’s economy 11:10 PM ET Tue, 6 Nov 2018 | 01:53

The gulf between economic outlook and opinions on Trump may come down to poor approval of his personality and behavior — traits such as honesty, leadership and values, according to Quinnipiac’s Tim Malloy.

“Despite recent market downturns, voters are upbeat on what President Donald Trump has brought to the economy, but underwhelmed by just about every other aspect of the Trump tenure,” Malloy, assistant director of the Quinnipiac University Poll, said in a statement. “Not honest, not level headed, not empathetic. The surging economy is offset by deep questions about the president’s character and conduct.”

While Trump’s Republican Party lost at least 38 House seats and its majority in this month’s midterm elections, the president has a good chance of winning a second term. The Electoral College system works in the president’s favor, as he won the presidency in 2016 despite getting a smaller share of overall votes than Democrat Hillary Clinton. Traditional swing states Ohio and Florida look favorable to Trump — despite states he won such as Michigan, Pennsylvania, Wisconsin and Arizona tilting toward Democrats in this month’s elections.

Trump has also used headline economic figures — solid jobs growth, the lowest unemployment rate in decades and quarterly gross domestic product growth above 3 percent — as the main evidence of his success in the White House.

Voters largely believe Trump has handled the economy well, but the president rarely goes higher than 45 percent in approval rating polls. As concerns about an economic slowdown spread, Trump could potentially lose his main selling point ahead of his re-election bid.

Pockets of Wall Street have started to forecast more sluggish economic growth in the near future. Jan Hatzius, chief economist at Goldman Sachs, wrote Sunday that “growth is likely to slow significantly next year, from a recent pace of 3.5 percent-plus to roughly our 1.75 percent estimate of potential by end-2019.”

JPMorgan economists also anticipate economic growth will take a hit next year, slowing to a pace of 1.9 percent for 2019.

The Trump administration has dismissed any notion of an economic slowdown. On Tuesday, the president’s top economic advisor, Larry Kudlow, called expectations for a recession “nonsense” and said he does not “even remotely agree” with Goldman’s assessment.

A White House spokeswoman did not immediately respond to a request to comment on the discrepancy between economic outlook and the president’s approval rating.

Electoral expert and forecaster Nate Silver of FiveThirtyEight believes the prospect of a downturn poses risks for Trump in 2020. Silver writes that presidents typically win their re-election bids — even after struggles for their parties in the most recent midterm election. President George H.W. Bush was the last incumbent president to lose an election in 1992, and Trump’s predecessor President Barack Obama won a second term after a wipeout of his Democratic Party in the 2010 midterms.

Yet, Silver notes that Obama and Presidents Bill Clinton and Ronald Reagan — who also earned second terms despite tough midterm elections — had the advantage of improving economies. That’s where the problems for Trump could come in, as the economy does not have room to get much better, according to Silver.

He writes that “although the economy is very strong now, there is arguably more downside than upside for Trump (voters have high expectations, but growth is more likely than not to slow a bit).”

Of course, there is no guarantee that growth slows down, and Trump could go into the 2020 election with a strong economy behind him. Any number of factors could also boost his approval rating in the nearly two years before the November 2020 election.

Unknowns could also work against Trump in that time. Special counsel Robert Mueller will likely conclude his investigation into whether the Trump campaign coordinated with Russia during the 2016 election.

House Democratic investigations — and the possibility of Trump’s tax returns revealing new information — also loom as the president looks toward his re-election.

Subscribe to CNBC on YouTube.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: jacob pramuk, joshua roberts
Keywords: news, cnbc, companies, approval, economy, trumps, voters, economic, trump, growth, won, silver, presidents, sign, bad, dont, 2020, president


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Brexit deal puts UK’s economic success first, leader Theresa May tells British industry

The draft Brexit deal on offer “unashamedly” puts the U.K.’s economic success above all else, the U.K.’s prime minister told business leaders at the annual Confederation of British Industry (CBI) on Monday. “There is one paramount issue facing our economy at the moment,” May told the conference in London, referring to a crucial moment in Brexit negotiations. “The deal we will secure with the EU has securing jobs and prosperity at its heart,” she added. A majority of Parliament has to approve the


The draft Brexit deal on offer “unashamedly” puts the U.K.’s economic success above all else, the U.K.’s prime minister told business leaders at the annual Confederation of British Industry (CBI) on Monday. “There is one paramount issue facing our economy at the moment,” May told the conference in London, referring to a crucial moment in Brexit negotiations. “The deal we will secure with the EU has securing jobs and prosperity at its heart,” she added. A majority of Parliament has to approve the
Brexit deal puts UK’s economic success first, leader Theresa May tells British industry Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: holly ellyatt, victoria jones – pa images, pa images, getty images
Keywords: news, cnbc, companies, british, weve, deal, uk, puts, leader, economic, uks, theresa, success, tells, brexit, parliament, week, draft, eu, told, industry


Brexit deal puts UK's economic success first, leader Theresa May tells British industry

The draft Brexit deal on offer “unashamedly” puts the U.K.’s economic success above all else, the U.K.’s prime minister told business leaders at the annual Confederation of British Industry (CBI) on Monday.

“There is one paramount issue facing our economy at the moment,” May told the conference in London, referring to a crucial moment in Brexit negotiations.

“We now have an intense week of negotiations ahead of us,” she said, ahead of the special European Council on Brexit this coming weekend.

“What we’ve agreed puts our future economic success first,” she said, saying there would be zero tariffs between the U.K. and Europe and an “ambitious customs arrangement” as part of a future trade relationship.

While the U.K.’s relationship with the EU was changing, its geography was not, she said, adding that “Europe will always be our nearest goods market.”

“The deal we will secure with the EU has securing jobs and prosperity at its heart,” she added.

May’s appearance at the annual conference of U.K. business leaders comes amid turbulent times at Westminister.

Over the last week, we’ve seen the announcement of a draft withdrawal agreement (in plain English, a draft Brexit deal) between the U.K. and European Union followed by a pronounced rebellion from both Brexiteers and Remainers in the U.K. Parliament that both don’t like the deal.

A majority of Parliament has to approve the draft deal but as it stands, that’s looking unlikely given the amount of opposition it has faced these last few days. May has more immediate problems, however, in that she could face a potential vote of no-confidence if a requisite number of her Conservative Party signal that they no longer believe she can lead with authority.

Introducing the prime minister, John Allen, the president of the CBI, said May had carried out Brexit negotiations with “resilience” and “grit.”

May concluded that her job was to get the best Brexit deal with the EU. “Parliament must then examine it and act on what is in the country’s best interest,” she said. “It was never going to be easy or straightforward and the final stage was always going to be the toughest,” but, she added, she was determined to deliver the deal.


Company: cnbc, Activity: cnbc, Date: 2018-11-19  Authors: holly ellyatt, victoria jones – pa images, pa images, getty images
Keywords: news, cnbc, companies, british, weve, deal, uk, puts, leader, economic, uks, theresa, success, tells, brexit, parliament, week, draft, eu, told, industry


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Bond Market: yields fall amid political uncertainty surrounding Brexit

In politics, market focus is largely attuned to Brexit developments, amid heightened fears the U.K. could soon crash out of the European Union without a divorce deal. The British pound suffered its biggest one-day loss against the euro since October 2016 on Thursday, as a flurry of resignations rocked the government of U.K. Prime Minister Theresa May. Back home, investors continue to monitor developments in U.S.-China trade talks. A number of economic data are expected on Friday. ET, Chicago Fed


In politics, market focus is largely attuned to Brexit developments, amid heightened fears the U.K. could soon crash out of the European Union without a divorce deal. The British pound suffered its biggest one-day loss against the euro since October 2016 on Thursday, as a flurry of resignations rocked the government of U.K. Prime Minister Theresa May. Back home, investors continue to monitor developments in U.S.-China trade talks. A number of economic data are expected on Friday. ET, Chicago Fed
Bond Market: yields fall amid political uncertainty surrounding Brexit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: spriha srivastava
Keywords: news, cnbc, companies, uk, talks, uncertainty, bond, et, developments, political, president, trade, economic, trump, expected, xi, market, surrounding, fall, brexit, amid, yields


Bond Market: yields fall amid political uncertainty surrounding Brexit

In politics, market focus is largely attuned to Brexit developments, amid heightened fears the U.K. could soon crash out of the European Union without a divorce deal. The British pound suffered its biggest one-day loss against the euro since October 2016 on Thursday, as a flurry of resignations rocked the government of U.K. Prime Minister Theresa May.

Back home, investors continue to monitor developments in U.S.-China trade talks. On Thursday, a senior Trump administration official told Reuters that China’s written response to U.S. demands for trade reforms is unlikely to trigger a breakthrough at talks between President Donald Trump and Xi Jinping later this month.

A number of economic data are expected on Friday. Industrial production numbers are expected to be released at 9:15 a.m. ET, followed by a Quarterly Services Report at 10 a.m. ET, a Kansas City Fed Manufacturing Index at 11 a.m. ET and a Baker-Hughes Rig Count at 1:00 p.m. ET.

At 11:30 a.m. ET, Chicago Federal Reserve Bank President Charles Evans is due to speak about current economic conditions and monetary policy at a roundtable in Chicago.

No auctions are scheduled for Friday.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: spriha srivastava
Keywords: news, cnbc, companies, uk, talks, uncertainty, bond, et, developments, political, president, trade, economic, trump, expected, xi, market, surrounding, fall, brexit, amid, yields


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

American CEOs don’t see US economic slowdown yet, says head of executive group

The organization, a global, independent business membership and research association, conducts a number of CEO and confidence studies. He told CNBC’s “Power Lunch” on Friday the group’s forecast for 2018 gross domestic product is about 3.1 percent, while 2019’s is 3.2 percent. Its leading economic index for September increased 0.5 percent and its consumer confidence index moved up 2.6 points in October. However, its measure of CEO confidence declined in the third quarter, thanks to concerns abou


The organization, a global, independent business membership and research association, conducts a number of CEO and confidence studies. He told CNBC’s “Power Lunch” on Friday the group’s forecast for 2018 gross domestic product is about 3.1 percent, while 2019’s is 3.2 percent. Its leading economic index for September increased 0.5 percent and its consumer confidence index moved up 2.6 points in October. However, its measure of CEO confidence declined in the third quarter, thanks to concerns abou
American CEOs don’t see US economic slowdown yet, says head of executive group Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: michelle fox
Keywords: news, cnbc, companies, dont, leading, index, confidence, cycle, sectors, cnbcs, ceos, slowdown, told, head, ceo, american, expect, global, economic, executive, group


American CEOs don't see US economic slowdown yet, says head of executive group

Global CEOs are seeing a bit of a slowdown outside the United States, but that’s not what U.S. chief executives are saying about the nation’s economy, according to Steve Odland, president and CEO of The Conference Board.

The organization, a global, independent business membership and research association, conducts a number of CEO and confidence studies.

“The U.S. numbers look very strong. All of the Conference Board indicators from the consumer confidence index to the leading economic indicators to the expectations index all say that the next six months expect to be very good,” said Odland, a CNBC contributor who once served as CEO of both Office Depot and AutoZone.

He told CNBC’s “Power Lunch” on Friday the group’s forecast for 2018 gross domestic product is about 3.1 percent, while 2019’s is 3.2 percent.

Its leading economic index for September increased 0.5 percent and its consumer confidence index moved up 2.6 points in October. However, its measure of CEO confidence declined in the third quarter, thanks to concerns about rising interest rates.

Odland’s remarks follow CNBC’s Jim Cramer’s comments that CEOs are telling him how quickly things have cooled in the economy.

“So many of them are baffled that we could find ourselves in this late-cycle dilemma that wasn’t supposed to occur so soon,” the “Mad Money” host said on Thursday.

Odland didn’t say that Cramer was wrong. Instead, he pointed out that there are some sectors that may be experiencing a slowdown.

“Ten years into a recovery, you would expect to see some of the leading sectors, some of the leading companies on that cycle to begin to slow down. And you would expect to see different geographic issues,” he said. “It’s a mixed bag.”

Bill George, former Medtronic chairman and a CNBC contributor, agrees. For example, the retail sector has never been better, and health-care execs are bullish, he said. However, for the auto sector it is near the end of the business cycle, he added.

“We are at the end of a very long cycle,” he told “Power Lunch.” “It could continue for several years, but everyone’s concerned about risk.”

He said the biggest risk is global trade, specifically with China.

— CNBC’s Elizabeth Gurdus contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: michelle fox
Keywords: news, cnbc, companies, dont, leading, index, confidence, cycle, sectors, cnbcs, ceos, slowdown, told, head, ceo, american, expect, global, economic, executive, group


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Former Brexit secretary: Prime minister’s deal takes away all economic benefits of EU divorce

Her draft deal was signed off on by negotiators from both the EU and the U.K. on Tuesday. When asked if his opposition increases the possibility of a no-deal and a so-called hard Brexit, Davis said he didn’t think that was necessarily the case. “In any deal, you have to be able and willing to walk away if a deal is not good enough. “It’s worth taking a small risk, a small but manageable risk, of no deal,” Davis added. He said it is likely the deal will be rejected by the House of Commons, the lo


Her draft deal was signed off on by negotiators from both the EU and the U.K. on Tuesday. When asked if his opposition increases the possibility of a no-deal and a so-called hard Brexit, Davis said he didn’t think that was necessarily the case. “In any deal, you have to be able and willing to walk away if a deal is not good enough. “It’s worth taking a small risk, a small but manageable risk, of no deal,” Davis added. He said it is likely the deal will be rejected by the House of Commons, the lo
Former Brexit secretary: Prime minister’s deal takes away all economic benefits of EU divorce Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: michelle fox, david levenson, bloomberg, getty images
Keywords: news, cnbc, companies, risk, takes, divorce, deal, uk, davis, worth, benefits, house, prime, brexit, ministers, small, economic, opposition, secretary, eu


Former Brexit secretary: Prime minister's deal takes away all economic benefits of EU divorce

May is facing opposition from across the political spectrum. Her draft deal was signed off on by negotiators from both the EU and the U.K. on Tuesday. It now needs the approval of senior lawmakers and then the entire U.K. Parliament before it can be finalized.

May’s proposal led several ministers to resign, including Brexit Secretary Dominic Raab. On Friday, May appointed Stephen Barclay, a junior health minister who voted to leave the EU in a 2016 referendum, as her new Brexit secretary.

When asked if his opposition increases the possibility of a no-deal and a so-called hard Brexit, Davis said he didn’t think that was necessarily the case.

“In any deal, you have to be able and willing to walk away if a deal is not good enough. To sort of give in to that fear is to say, ‘Any deal will do, thank you very much,'” he said.

“It’s worth taking a small risk, a small but manageable risk, of no deal,” Davis added.

He said it is likely the deal will be rejected by the House of Commons, the lower house of the U.K. Parliament.

“There is no way I can see it going through,” he said. “Therefore, she’ll have to come up with another alternative.”

— Reuters contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: michelle fox, david levenson, bloomberg, getty images
Keywords: news, cnbc, companies, risk, takes, divorce, deal, uk, davis, worth, benefits, house, prime, brexit, ministers, small, economic, opposition, secretary, eu


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Oil prices slip on concerns of looming oversupply, economic downturn

Oil prices slipped on Thursday, weighed down by rising supply going into a market in which consumption is expected to slow down amid a glum economic outlook. Front-month Brent crude oil futures were trading at $65.88 per barrel at 0441 GMT, down 24 cents, or 0.4 percent, from their last close. Since early October, oil prices have lost around a quarter of their value as supply soars just as demand is expected to slow down along with an economic downturn. Meanwhile, data released this week showed


Oil prices slipped on Thursday, weighed down by rising supply going into a market in which consumption is expected to slow down amid a glum economic outlook. Front-month Brent crude oil futures were trading at $65.88 per barrel at 0441 GMT, down 24 cents, or 0.4 percent, from their last close. Since early October, oil prices have lost around a quarter of their value as supply soars just as demand is expected to slow down along with an economic downturn. Meanwhile, data released this week showed
Oil prices slip on concerns of looming oversupply, economic downturn Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, economic, supply, oil, barrels, looming, million, demand, week, downturn, crude, slip, prices, oversupply, concerns, opec


Oil prices slip on concerns of looming oversupply, economic downturn

Oil prices slipped on Thursday, weighed down by rising supply going into a market in which consumption is expected to slow down amid a glum economic outlook.

Front-month Brent crude oil futures were trading at $65.88 per barrel at 0441 GMT, down 24 cents, or 0.4 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $55.96 a barrel, down 29 cents, or 0.5 percent.

Since early October, oil prices have lost around a quarter of their value as supply soars just as demand is expected to slow down along with an economic downturn.

“Asian refiners and consumers we speak with are mentioning initial concerns of slowing demand,” said Mike Corley, president of Mercatus Energy Advisors.

U.S. bank Morgan Stanley said in a note on Wednesday that China’s economic “conditions deteriorated materially” in the third quarter of 2018, while analysts at Capital Economics said China’s “near-term economic outlook still remains downbeat.”

China is the world’s biggest oil importer and the second-largest crude consumer.

Meanwhile, data released this week showed economic contraction in industrial powerhouses Japan and Germany in the third quarter.

At the same time, supply has been surging, especially due to a 22 percent rise in U.S. crude oil production this year to a record 11.6 million barrels per day (bpd).

“Producers…have more barrels than they can sell at the moment,” said Mercatus Energy Advisors’ Corley.

As a result, oil inventories are rising. The American Petroleum Institute said late on Wednesday that crude inventories rose by 8.8 million barrels in the week to Nov. 9 to 440.7 million, compared with analyst expectations for an increase of 3.2 million barrels.

Fearing a renewed glut like in 2014, when prices crashed under the weight of oversupply, the Organization of the Petroleum Exporting Countries (OPEC) is discussing supply cuts.

To do so successfully, OPEC – under the de-facto leadership of Saudi Arabia – will need Russia on its side, which is not an OPEC member.

A joint effort between OPEC and Russia to withhold supply from 2017 was a major contributor to crude price rises last year and in the first half of 2018.

“Russia and OPEC and Saudi Arabia – they are observing the market. If they see that there is dis-balance between supply and demand, (they) will of course take a joint action to reduce supply,” said Kirill Dmitriev, head of Russian Direct Investment Fund, the country’s sovereign wealth investment body.


Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, economic, supply, oil, barrels, looming, million, demand, week, downturn, crude, slip, prices, oversupply, concerns, opec


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Billionaire investor Ray Dalio: Fed raised rates to a point where it’s hurting asset prices

Hedge fund billionaire Ray Dalio argued Thursday that the Federal Reserve has raised rates to a point where they’re hurting asset prices. The Fed has already raised rates three times this year, and one more is expected in December. “We’ve raised interest rates to a level that it’s hurting asset prices,” the founder of Bridgewater Associates said in an interview with CNBC’s “Squawk Box.” “We’re in a situation right now that the Fed will have to look at asset prices before they look at economic ac


Hedge fund billionaire Ray Dalio argued Thursday that the Federal Reserve has raised rates to a point where they’re hurting asset prices. The Fed has already raised rates three times this year, and one more is expected in December. “We’ve raised interest rates to a level that it’s hurting asset prices,” the founder of Bridgewater Associates said in an interview with CNBC’s “Squawk Box.” “We’re in a situation right now that the Fed will have to look at asset prices before they look at economic ac
Billionaire investor Ray Dalio: Fed raised rates to a point where it’s hurting asset prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, billionaire, ray, prices, investor, point, dalio, rates, hurting, economic, asset, fed, fund, raised, central, raise


Billionaire investor Ray Dalio: Fed raised rates to a point where it's hurting asset prices

Hedge fund billionaire Ray Dalio argued Thursday that the Federal Reserve has raised rates to a point where they’re hurting asset prices.

The central bank needs to start looking at monetary policy’s impact on asset prices before economic conditions, Dalio said, adding he would err on the side of caution on rate hikes.

The Fed has already raised rates three times this year, and one more is expected in December.

“We’ve raised interest rates to a level that it’s hurting asset prices,” the founder of Bridgewater Associates said in an interview with CNBC’s “Squawk Box.” “We’re in a situation right now that the Fed will have to look at asset prices before they look at economic activity. It’s a difficult position.”

On Wednesday, Federal Reserve Chairman Jerome Powell expressed confidence in economic strength, and said markets will have to get used to the idea that the central bank could raise rates at any time starting in 2019.

Last month, Powell said the cost of borrowing money was a long way from so-called neutral, sparking concerns about a more aggressive Fed tightening that led to October being the worst month for the S&P 500 since September 2011.

President Donald Trump has repeatedly express frustration with the central bank’s move to raise rates, arguing the Fed could disrupt the U.S. economic recovery.

In the CNBC interview, Dalio laughed off the notion that the Fed needs to raise rates so it would have room to make cuts if the economy were to take a major downturn. “That sounds like pretty bad logic to me,” he said.

Dalio also said the U.S. is late in the business cycle, perhaps the seventh or eighth inning, and assets are “fully priced.”

Bridgewater Associates is the world’s biggest hedge fund, with about $160 billion in assets under management.

In June, it was revealed that Bridgewater was becoming a partnership, giving top executives there more power in running the fund. While Dalio remains co-CIO and co-chairman, he gave up his co-CEO role in March 2017.

Dalio, who started Bridgewater in his two-bedroom apartment in New York City in 1975, now has an estimated net worth of $18.1 billion, according to Forbes.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, billionaire, ray, prices, investor, point, dalio, rates, hurting, economic, asset, fed, fund, raised, central, raise


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Economic troubles, Brexit and trade wars may affect travel companies, executives warn

Other online travel leaders expect consumers to continue to travel, though the type of travel they book may change as concerns over the economy continue to rise. Glenn Fogel, CEO of Booking Holdings, the largest travel operator in the world, admitted there were some areas of uncertainty, pointing to Brexit and the ongoing trade war. Brad Gerstner, who manages $3 billion hedge fund Altimeter Capital, said some of his biggest positions are still in online travel stocks such as Booking Holdings and


Other online travel leaders expect consumers to continue to travel, though the type of travel they book may change as concerns over the economy continue to rise. Glenn Fogel, CEO of Booking Holdings, the largest travel operator in the world, admitted there were some areas of uncertainty, pointing to Brexit and the ongoing trade war. Brad Gerstner, who manages $3 billion hedge fund Altimeter Capital, said some of his biggest positions are still in online travel stocks such as Booking Holdings and
Economic troubles, Brexit and trade wars may affect travel companies, executives warn Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: seema mody, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, trade, market, troubles, ceo, affect, warn, gerstner, online, continue, consumers, travel, booking, executives, brexit, holdings, economic, companies, wars


Economic troubles, Brexit and trade wars may affect travel companies, executives warn

Mediterranean cruises and luxury spa treatments were not the major topics of conversation at the Phocuswright Travel conference in Los Angeles.

Most pressing concern? Changing consumer trends amid economic jitters.

A number of travel executives told CNBC they are bullish on the short term but admitted that the longer-term picture is becoming more uncertain given new industry dynamics and larger political headwinds, such as Brexit and trade wars.

Kayak CEO Steve Hafner told CNBC that bookings look soft to flat going into the holidays.

Other online travel leaders expect consumers to continue to travel, though the type of travel they book may change as concerns over the economy continue to rise.

“Often what happens is consumers are less willing to book that trip six months from now, twelve months from now. They’re thinking, ‘Let’s wait and see how we’re doing.’ Secondly, we do see more towards domestic travel, away from international. Third is we do see often a trade down, people are spending less. But in a real downturn, sometimes you get a four-star hotel for a three-star price, and so customers are getting better value,” Expedia CEO Mark Okerstrom said to CNBC.

Glenn Fogel, CEO of Booking Holdings, the largest travel operator in the world, admitted there were some areas of uncertainty, pointing to Brexit and the ongoing trade war. However, he said the tight labor market suggests the economy is in a good position and consumers will continue to spend a portion of their discretionary income on trips.

“Look at the unemployment level in the U.S. It is booming right now. We see people, when they have cash, they want to travel. So while there may be a pocket here and there that’s causing concern, in the long run, the trend for travel is going to be upward,” Fogel said to CNBC.

Brad Gerstner, who manages $3 billion hedge fund Altimeter Capital, said some of his biggest positions are still in online travel stocks such as Booking Holdings and Expedia.

Gerstner, while cautious on the current market landscape, said history has shown that online travel operators tend to do well amid an economic downturn.

“Ironically, if you look at 2008 and 2011, Priceline [now known as Booking Holdings] and Expedia actually accelerated in those cycles because hotels become more dependent on them to distribute their products,” Gerstner said to CNBC.

Taking a step back and analyzing the recent stock market downturn, Gerstner characterized it as a “healthy correction … we’re seeing opportunities.”

Gerstner said Altimeter continues to like Facebook, pointing to its valuation, which he said is at a single-digit multiple.

Looking to the IPO market, while a number of companies have delayed their listings due to the recent bout of stock market volatility, Gerstner still expects Uber to list in the first quarter of 2019.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: seema mody, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, trade, market, troubles, ceo, affect, warn, gerstner, online, continue, consumers, travel, booking, executives, brexit, holdings, economic, companies, wars


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post