Asia Pacific stocks edge up as US announces some tariff delays

Stocks in Asia Pacific edged up on Wednesday as the U.S. announced a delay in the implementation of tariffs on some Chinese goods. Meanwhile, the Hang Seng index in Hong Kong was fractionally lower, as of its final hour of trading. Tensions in Hong Kong remained high after the city’s airport saw disruptions for a second day on Tuesday as a result of protests. “We are advising client(s) to cut their exposure towards Hong Kong equity markets and move towards more South Asia markets like Indonesia,


Stocks in Asia Pacific edged up on Wednesday as the U.S. announced a delay in the implementation of tariffs on some Chinese goods. Meanwhile, the Hang Seng index in Hong Kong was fractionally lower, as of its final hour of trading. Tensions in Hong Kong remained high after the city’s airport saw disruptions for a second day on Tuesday as a result of protests. “We are advising client(s) to cut their exposure towards Hong Kong equity markets and move towards more South Asia markets like Indonesia,
Asia Pacific stocks edge up as US announces some tariff delays Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: eustance huang
Keywords: news, cnbc, companies, rose, day, index, markets, pacific, way, trading, asia, edge, tariff, kong, delays, tariffs, hong, stocks, announces


Asia Pacific stocks edge up as US announces some tariff delays

Stocks in Asia Pacific edged up on Wednesday as the U.S. announced a delay in the implementation of tariffs on some Chinese goods.

Shares in mainland China rose on the day, with the Shanghai composite gaining 0.42% to 2,808.91 and the Shenzhen component adding 0.72% to 8,966.47. The Shenzhen composite also advanced 0.692% to 1,509.00.

The United States Trade Representative announced Tuesday certain products are being removed from the tariff list and will not face additional tariffs of 10%. Other tariffs will be delayed to Dec. 15 for certain goods, it said.

“A cynical view then is that the delay is purely for political timing rather than a more substantive change in the US’ approach to the US-China relationship,” Tapas Strickland, an economist at National Australia Bank, wrote in a note.

“Overall a high degree of (skepticism) should remain and an imminent deal is unlikely given Trump has foreshadowed he is going to be campaigning hard on the issue in the 2020 election,” Strickland said.

Meanwhile, the Hang Seng index in Hong Kong was fractionally lower, as of its final hour of trading. Tensions in Hong Kong remained high after the city’s airport saw disruptions for a second day on Tuesday as a result of protests.

“In the near term, Hong Kong police might take tougher action and China might be looking to resolve this issue one way or the other way, which is going to be negative for the markets,” Suresh Tantia, senior investment strategist at the Credit Suisse APAC CIO office, told CNBC’s “Street Signs” on Wednesday.

“We are advising client(s) to cut their exposure towards Hong Kong equity markets and move towards more South Asia markets like Indonesia,” Tantia said.

Elsewhere, Japan’s Nikkei 225 rose 0.98% to close at 20,655.13, while the Topix index also advanced 0.87% to end its trading day at 1,499.50.

Over in South Korea, the Kospi gained 0.65% to close at 1,938.37, Australia’s S&P/ASX 200 also rose 0.42% on the day to 6,595.90.

Overall, the MSCI Asia ex-Japan index added 0.62%.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: eustance huang
Keywords: news, cnbc, companies, rose, day, index, markets, pacific, way, trading, asia, edge, tariff, kong, delays, tariffs, hong, stocks, announces


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Trump just blinked, giving China a possible edge in trade war, Jim Chanos and others say

In backing off on China tariffs Tuesday, President Donald Trump showed just how much pain the U.S. could tolerate — and China may use that to its advantage, key voices on Wall Street say. John Rutledge, chief investment officer of global principal investment house Safanad, said the trade war is causing pain on both sides. In China, Rutledge said Xi is feeling pressure to show strength in the trade war, while Washington is grappling with mounting political pressure and costs to consumers. The pre


In backing off on China tariffs Tuesday, President Donald Trump showed just how much pain the U.S. could tolerate — and China may use that to its advantage, key voices on Wall Street say. John Rutledge, chief investment officer of global principal investment house Safanad, said the trade war is causing pain on both sides. In China, Rutledge said Xi is feeling pressure to show strength in the trade war, while Washington is grappling with mounting political pressure and costs to consumers. The pre
Trump just blinked, giving China a possible edge in trade war, Jim Chanos and others say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: kate rooney
Keywords: news, cnbc, companies, trade, tariff, possible, china, xi, giving, say, rutledge, edge, white, chanos, market, war, trump, jim, tariffs


Trump just blinked, giving China a possible edge in trade war, Jim Chanos and others say

In backing off on China tariffs Tuesday, President Donald Trump showed just how much pain the U.S. could tolerate — and China may use that to its advantage, key voices on Wall Street say.

Markets rallied on the announcement by the U.S. Trade Representative office that certain items were being removed from the new tariff list, while duties on others would be delayed until mid-December.

The short-seller Jim Chanos, who tweets under the alter ego “Diogenes,” hinted that Chinese President Xi Jinping may take this as a sign that the U.S. may cave with enough pressure.

“So then tell me why Xi should not continue to wait out The World’s Greatest Negotiator, who keeps ‘dealing’ with himself?” tweeted Chanos, founder and managing Partner of Kynikos Associates.

Some investors took Tuesday’s announcement as a sign that despite the White House’s claim that China would bear the brunt of tariff impacts, the trade war was indeed hurting consumers. The products in the group exempt from tariffs include cellphones, some apparel, and video games — all of which are crucial to the U.S. consumer market, especially during the holiday shopping season. Trump announced on Aug. 1 that 10% tariffs would go into effect on Sept. 1 on the remaining $300 billion worth of Chinese imports that had not been slapped with U.S. duties.

Trump told reporters Tuesday afternoon that he postponed tariffs for the Christmas season “in case it had an impact on shopping” and the delay would “help a lot of people.”

Hedge fund manager and Hayman Capital Management founder Kyle Bass said based on the tariff de-escalation, “it does look like President Trump has blinked.” While Trump has been vocal in the tariff fight, Bass said “every time it makes the stock market go down a few hundred points” the president “backs away.”

“It looks like he doesn’t want the price of iPhones going up into Christmas,” Bass said on CNBC’s “Squawk Alley ” Tuesday. “The Chinese are going to read this as a key weakness.”

China meanwhile, has not publicly backed off. It announced last week that it would not resume buying U.S. agricultural products, despite assurances otherwise by Xi to Trump at the June G-20 summit. It also has retaliated with its own tariffs on U.S. goods and set off more worries about the trade war on Friday by letting its currency weaken.

John Rutledge, chief investment officer of global principal investment house Safanad, said the trade war is causing pain on both sides. In China, Rutledge said Xi is feeling pressure to show strength in the trade war, while Washington is grappling with mounting political pressure and costs to consumers.

But that can change quickly, Rutledge said, depending on which of Trump’s trade advisors have his ear at the moment.

“There’s a battle of the bands among advisors — this may be just a tick up as the rational group prevailed,” Rutledge said, referring to White House economic advisor Larry Kudlow, Secretary of Commerce Wilbur Ross and Treasury Secretary Steven Mnuchin, whom he calls “market thinkers” in opposition to trade hawk and advisor Peter Navarro.

Still, Rutledge said its nearly impossible to predict the White House’s next move and investors should take this as “one day and one data point.”

“We shouldn’t extrapolate or draw a trend, since it might get revered,” Rutledge said.

The president’s top priorities — a strong stock market and a tough China trade deal — have been at odds. Uncertainty around the trade war has weighed on financial markets. Stocks saw their worst day of the year on Aug. 5 after China let its currency weaken below 7 yuan to the dollar and made its announcement about U.S. farm products.

“The White House is now delaying the tariffs and removing some items. Did some acronym called the SPX cause someone to blink?,” David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates, said in a tweet.

China’s Commerce Ministry said Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lightizer and Mnuchin. Trade talks are set to continue in two weeks. According to Chinese news outlet CGTN, the call for the world’s two largest economies to meet again on trade came from Lighthizer, not China.

So far, the pain felt by the stock market has not been that exaggerated. At its low point for this sell-off, the S&P 500 was down only a little more than 6% from its high.

“These developments are modestly positive, especially compared to the recent torrent of negative news, but we caution against viewing the tariff delay as anything more than an attempt to partially shield the American consumer heading into the holiday season,” Isaac Boltansky of Compass Point Research wrote in a note to clients. “We continue to believe that a broad deal will not emerge prior to the 2020 election.”

Trump, himself, accused China last week of trying to wait out the 2020 election for a trade deal.


Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: kate rooney
Keywords: news, cnbc, companies, trade, tariff, possible, china, xi, giving, say, rutledge, edge, white, chanos, market, war, trump, jim, tariffs


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Disney set to report earnings after the bell

Disney is set to release its fiscal third-quarter earnings after the markets close on Tuesday. The company’s theme park business is also expected to be a bright spot in its results. It comes as Disney in May opened its new Star Wars-themed attraction, Galaxy’s Edge, at Disneyland. Reservations to get into Galaxy’s Edge sold out within two hours and the company expects demand to remain steady throughout the summer. A second Galaxy’s Edge will open in Orlando, Florida, in August.


Disney is set to release its fiscal third-quarter earnings after the markets close on Tuesday. The company’s theme park business is also expected to be a bright spot in its results. It comes as Disney in May opened its new Star Wars-themed attraction, Galaxy’s Edge, at Disneyland. Reservations to get into Galaxy’s Edge sold out within two hours and the company expects demand to remain steady throughout the summer. A second Galaxy’s Edge will open in Orlando, Florida, in August.
Disney set to report earnings after the bell Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-06  Authors: annie palmer
Keywords: news, cnbc, companies, york, earnings, galaxys, companys, office, edge, theme, report, billion, set, box, share, disney, bell


Disney set to report earnings after the bell

Chief executive officer and chairman of The Walt Disney Company Bob Iger and Mickey Mouse look on before ringing the opening bell at the New York Stock Exchange (NYSE), November 27, 2017 in New York City.

Disney is set to release its fiscal third-quarter earnings after the markets close on Tuesday.

Here are the numbers analysts are expecting:

Earnings per share: $1.75 per share, according to Refinitiv estimates

$1.75 per share, according to Refinitiv estimates Revenue: $21.47 billion, per Refinitiv

Disney is expected to show strong growth in its studio business, bolstered by the company’s continued dominance at the box office this year.

Last month, Disney’s “Avengers: Endgame” became the highest-grossing film of all time, raking in $2.79 billion at the global box office and surpassing previous chart-topper “Avatar’s” record of $2.7897. The success of “Endgame,” as well as other titles like “Captain Marvel,” “The Lion King,” “Toy Story 4” and “Aladdin,” could help Disney earn more than $9 billion at the global box office this year.

Analysts will likely be looking for more color on the company’s upcoming Disney+ streaming service, which was announced in 2018 and will launch in November at a cost of $6.99 per month, or $69.99 per year. The service will feature content from Disney, Pixar, Marvel, Star Wars, and more. It will also have programming from Fox, thanks to Disney’s $71 billion purchase of Fox’s entertainment assets.

Disney closed the multi-billion dollar deal in late March and will include results from Fox for the first time in its third quarter results.

The company’s theme park business is also expected to be a bright spot in its results. Earlier this year, Disney said it was raising ticket prices for some of its US theme parks, but that did little to deter guests from spending more and staying longer at its parks during the second quarter.

It comes as Disney in May opened its new Star Wars-themed attraction, Galaxy’s Edge, at Disneyland. Reservations to get into Galaxy’s Edge sold out within two hours and the company expects demand to remain steady throughout the summer. A second Galaxy’s Edge will open in Orlando, Florida, in August.

This story is developing.


Company: cnbc, Activity: cnbc, Date: 2019-08-06  Authors: annie palmer
Keywords: news, cnbc, companies, york, earnings, galaxys, companys, office, edge, theme, report, billion, set, box, share, disney, bell


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Why the coming sabbatical of Amazon’s Hollywood chief has Wall Street on edge

In March, four months before Amazon’s Jeff Blackburn announced that he was taking a year-long sabbatical from the company, the executive was asked to address a key business question during an all-hands staff meeting. Blackburn, a senior vice president and member of CEO Jeff Bezos’s exclusive S-Team, oversees Amazon’s video-streaming service, which is shelling out billions of dollars to outbid Netflix and others for exclusive content. An employee asked Blackburn if top executives still believed t


In March, four months before Amazon’s Jeff Blackburn announced that he was taking a year-long sabbatical from the company, the executive was asked to address a key business question during an all-hands staff meeting. Blackburn, a senior vice president and member of CEO Jeff Bezos’s exclusive S-Team, oversees Amazon’s video-streaming service, which is shelling out billions of dollars to outbid Netflix and others for exclusive content. An employee asked Blackburn if top executives still believed t
Why the coming sabbatical of Amazon’s Hollywood chief has Wall Street on edge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: eugene kim
Keywords: news, cnbc, companies, chief, asked, amazons, coming, blackburn, jeff, exclusive, edge, work, wall, vice, hollywood, sabbatical, prime, video, videostreaming, street


Why the coming sabbatical of Amazon's Hollywood chief has Wall Street on edge

Senior Vice President of Business Development at Amazon Jeff Blackburn (R) and Anne Blackburn attend the The IMDb Dinner Party at the Sundance Film Festival presented by Dolby on January 28, 2019 in Park City, Utah.

In March, four months before Amazon’s Jeff Blackburn announced that he was taking a year-long sabbatical from the company, the executive was asked to address a key business question during an all-hands staff meeting.

Blackburn, a senior vice president and member of CEO Jeff Bezos’s exclusive S-Team, oversees Amazon’s video-streaming service, which is shelling out billions of dollars to outbid Netflix and others for exclusive content. An employee asked Blackburn if top executives still believed those investments make sense.

“Is the executive team — the S-team — behind it?” Blackburn rhetorically asked in response. “Absolutely. There was a breakthrough year in 2018 in terms of just Prime member engagement with our Prime originals.”

At the meeting, a recording of which was obtained by CNBC, Blackburn went on to praise the video team’s work, including the writers of the upcoming “Lord of the Rings” series that reportedly cost Amazon $250 million for exclusive rights. He also explained how much he loved talking about Amazon’s Prime Video service, saying he could “do it for a long time.”

That was then. In an email announcement to employees on Wednesday, Blackburn said he was taking a year off, citing burnout after over two decades of nonstop work, including the last seven as the prime architect of its video-streaming effort. Critically, Blackburn will no longer be a part of the video team’s plan for 2020, a year that promises to the be the most competitive yet for the industry with Disney, Apple, and Comcast’s NBCUniversal all slated to launch new video-streaming apps. HBO and Netflix, meanwhile, are getting even more aggressive.

“Blackburn’s sabbatical could not come at a worse time for Bezos & Co.,” said Dan Ives, an analyst at Wedbush Securities, in an email to CNBC. “They lose a key cog in the wheel during his absence.”


Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: eugene kim
Keywords: news, cnbc, companies, chief, asked, amazons, coming, blackburn, jeff, exclusive, edge, work, wall, vice, hollywood, sabbatical, prime, video, videostreaming, street


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Treasury yields edge higher ahead of Fed meeting

U.S. government debt yields edged higher on Tuesday morning with traders awaiting a monetary policy decision from the Federal Reserve, which is expected to produce a first cut to interest rates for over a decade. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.058%, while the yield on the 30-year Treasury bond rose to 2.586%. Market focus is largely attuned to the Federal Open Markets Committee (FOMC) meeting next week, with markets pr


U.S. government debt yields edged higher on Tuesday morning with traders awaiting a monetary policy decision from the Federal Reserve, which is expected to produce a first cut to interest rates for over a decade. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.058%, while the yield on the 30-year Treasury bond rose to 2.586%. Market focus is largely attuned to the Federal Open Markets Committee (FOMC) meeting next week, with markets pr
Treasury yields edge higher ahead of Fed meeting Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-30  Authors: elliot smith
Keywords: news, cnbc, companies, yields, price, yield, edge, index, markets, ahead, fed, trade, meeting, rates, interest, treasury, higher, junes


Treasury yields edge higher ahead of Fed meeting

U.S. government debt yields edged higher on Tuesday morning with traders awaiting a monetary policy decision from the Federal Reserve, which is expected to produce a first cut to interest rates for over a decade.

At around 2:30 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.058%, while the yield on the 30-year Treasury bond rose to 2.586%.

Market focus is largely attuned to the Federal Open Markets Committee (FOMC) meeting next week, with markets pricing in a 25 basis point cut to interest rates. The Fed will announce its decision on Wednesday.

U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are set to resume in-person trade negotiations with China on Tuesday in Shanghai, though there is little hope of a resolution in the immediate future.

Economic data will also be in focus, with June’s personal income, consumer spending and core inflation data due at 8:30 a.m. ET.

The S&P/Case-Shiller house price index for May is due for release at 9:00 a.m. ET, while June’s pending home sales and July consumer confidence figures will be published at 10:00 a.m. The Dallas Fed’s services index is due at 10:30 a.m. ET.

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Company: cnbc, Activity: cnbc, Date: 2019-07-30  Authors: elliot smith
Keywords: news, cnbc, companies, yields, price, yield, edge, index, markets, ahead, fed, trade, meeting, rates, interest, treasury, higher, junes


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Asia stocks edge up; China’s June exports fall less than expected

Meanwhile, China’s trade with the U.S. declined in the first half of the year, amid an impasse between the two economic giants. The Nikkei 225 in Japan closed 0.2% higher at 21,685.90, while the Topix index fell 0.15% to end its trading day at 1,576.31. Data on Friday showed that China’s dollar-denominated exports fell 1.3% in June from a year ago while imports fell 7.3% in the same period. Economists polled by Reuters had expected China’s June exports to have declined 2% from a year ago, while


Meanwhile, China’s trade with the U.S. declined in the first half of the year, amid an impasse between the two economic giants. The Nikkei 225 in Japan closed 0.2% higher at 21,685.90, while the Topix index fell 0.15% to end its trading day at 1,576.31. Data on Friday showed that China’s dollar-denominated exports fell 1.3% in June from a year ago while imports fell 7.3% in the same period. Economists polled by Reuters had expected China’s June exports to have declined 2% from a year ago, while
Asia stocks edge up; China’s June exports fall less than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: eustance huang
Keywords: news, cnbc, companies, close, higher, trade, fell, trading, stocks, exports, chinas, showed, expected, index, declined, edge, fall, asia


Asia stocks edge up; China's June exports fall less than expected

Stocks in major Asian stock markets mostly closed higher on Friday. Meanwhile, China’s trade with the U.S. declined in the first half of the year, amid an impasse between the two economic giants.

The Nikkei 225 in Japan closed 0.2% higher at 21,685.90, while the Topix index fell 0.15% to end its trading day at 1,576.31. Over in South Korea, the Kospi advanced 0.29% to close at 2,086.66.

Australia’s S&P/ASX 200 slipped 0.29% to close at 6,696.50.

Mainland Chinese stocks rose on the day, with the Shanghai composite up 0.44% to 2,930.55 and the Shenzhen composite 0.506% higher to 1,556.77. The Shenzhen component also gained 0.66% to close at 9,213.38.

Hong Kong’s Hang Seng index added 0.23%, as of its final hour of trading. Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan declined fractionally.

Data on Friday showed that China’s dollar-denominated exports fell 1.3% in June from a year ago while imports fell 7.3% in the same period. Economists polled by Reuters had expected China’s June exports to have declined 2% from a year ago, while imports were expected to have contracted 4.5% from a year earlier.

In the first half of the year, China’s total trade with the U.S. was down 9%, customs data showed.


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: eustance huang
Keywords: news, cnbc, companies, close, higher, trade, fell, trading, stocks, exports, chinas, showed, expected, index, declined, edge, fall, asia


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Star Wars: Galaxy’s Edge to open Rise of Resistance ride later than expected

Disney has finally announced the opening date for Star Wars: Rise of the Resistance ride — and it’s a little later than expected. While the Orlando, Florida version of the ride is expected to be operational on Dec. 5, its California counterpart won’t open until Jan. 17. Disney had initially projected that both ride locations would be open by the end of 2019. Riders will be recruited to join Rey and General Leia Organa at a secret base, however, along the way they will be captured by the a First


Disney has finally announced the opening date for Star Wars: Rise of the Resistance ride — and it’s a little later than expected. While the Orlando, Florida version of the ride is expected to be operational on Dec. 5, its California counterpart won’t open until Jan. 17. Disney had initially projected that both ride locations would be open by the end of 2019. Riders will be recruited to join Rey and General Leia Organa at a secret base, however, along the way they will be captured by the a First
Star Wars: Galaxy’s Edge to open Rise of Resistance ride later than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: sarah whitten
Keywords: news, cnbc, companies, expected, orlando, wars, later, star, rise, ride, order, disney, open, edge, wont, galaxys, resistance


Star Wars: Galaxy's Edge to open Rise of Resistance ride later than expected

Disney has finally announced the opening date for Star Wars: Rise of the Resistance ride — and it’s a little later than expected.

While the Orlando, Florida version of the ride is expected to be operational on Dec. 5, its California counterpart won’t open until Jan. 17. Disney had initially projected that both ride locations would be open by the end of 2019.

“As soon as work is completed at Walt Disney World, Imagineers will head back to California to complete their mission at Disneyland Resort where Star Wars: Rise of the Resistance will open on Friday, Jan. 17,” the company said Thursday.

CEO Bob Iger teased investors in March that the ride is “the most technologically advanced and immersive attraction” the park has ever seen.

The ride is meant to “blur the lines between fantasy and reality” as it puts guests right in the middle of a battle between the First Order and the Resistance. Riders will be recruited to join Rey and General Leia Organa at a secret base, however, along the way they will be captured by the a First Order Star Destroyer and must escape.

The Orlando Galaxy’s Edge land is due to open to the public on August 29 and, while it won’t have the Rise of Resistance ride just yet, it will have the Millennium Falcon: Smuggler’s Run ride ready for guests. Other experiences like Savi’s Workshop, where fans can make their own lighstabers, the Droid Depot, where parkgoers can craft their own droids, and Oga’s Cantina will also be open.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: sarah whitten
Keywords: news, cnbc, companies, expected, orlando, wars, later, star, rise, ride, order, disney, open, edge, wont, galaxys, resistance


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Britain’s big banks see ‘trust’ as a competitive edge amid the rise of fledgling fintechs

“Everything is expected to be on their phones and on their apps,” she said, referring to younger bank customers, “and actually that is the way we need to go.” According to the U.K. consultancy Caci, mobile banking is set to become more popular than visiting bank branches by 2021. Monzo reported a £33.1 million ($42.1 million) pre-tax loss last year, while Revolut racked up a £15.1 million loss in 2017. But it’s also an independent bank, and Nicholls says it will be able to operate at “zero margi


“Everything is expected to be on their phones and on their apps,” she said, referring to younger bank customers, “and actually that is the way we need to go.” According to the U.K. consultancy Caci, mobile banking is set to become more popular than visiting bank branches by 2021. Monzo reported a £33.1 million ($42.1 million) pre-tax loss last year, while Revolut racked up a £15.1 million loss in 2017. But it’s also an independent bank, and Nicholls says it will be able to operate at “zero margi
Britain’s big banks see ‘trust’ as a competitive edge amid the rise of fledgling fintechs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: ryan browne
Keywords: news, cnbc, companies, rise, fintechs, banks, bank, nicholls, banking, million, amid, edge, fintech, customers, uk, monzo, money, fledgling, trust, big, britains, competitive


Britain's big banks see 'trust' as a competitive edge amid the rise of fledgling fintechs

HSBC’s U.K. headquarters are seen at the Canary Wharf financial district of London on July 31, 2018. Tolga Akmen | AFP | Getty Images

Britain is the home of some of the world’s oldest financial institutions. To stay relevant, they’re racing to bring a better banking experience to their customers. In the last few years, a wave of fintech, or financial technology, start-ups have flooded the U.K. market, offering checking accounts and bank cards through an app — not a single physical branch in sight. That’s not gone unnoticed by the established consumer banking giants, which are having to evolve to keep up with the kind of offering coming out of challengers like Revolut and Monzo. HSBC for instance last year launched a new money management app called Connected Money, which shows users bank accounts from HSBC as well as rivals including Barclays and Lloyds. The bank recently topped the 300,000-user milestone. While that’s nowhere near Revolut’s more than 5 million users or Monzo’s 2 million signups, HSBC’s new app did hit that target in the space of a year. RBS, meanwhile, has formed its own standalone digital bank called Bo. The lender’s app breaks down spending into categories and sends alerts when a user pays for something, similar to how the fintech challengers’ platforms work. Bo, which is part of RBS’ NatWest division, is currently being beta-tested, with no date set for an eventual release to the general public.

The battle for trust

While banks are under increased pressure to innovate, they’re not facing an existential crisis, according to Raman Bhatia, HSBC’s head of digital for the U.K. and Europe. The lenders that will win in the long run, he says, are those that people trust. “I think one thing which remains a truism is customers do have a very high degree of trust when it comes to money, their deposits and their identity with respect to established banks,” Bhatia told CNBC. “And banks need to work harder than ever to preserve that trust.”

That view was echoed by Amelia Nicholls, chief of staff at RBS’ Bo, who said: “Customers trust legacy banks to keep their money safe, but they’re slightly unsure of fintechs keeping their money safe.” And there’s some truth to that claim. While Monzo has attracted over 2 million customers, the bank has seen some difficulty getting them to take the plunge and switch from their main bank to the start-up’s app-based current account. Monzo CEO Tom Blomfield told Reuters last month that only 30% of its users are using the app as their main bank account. “We’re kind of the best of both worlds,” Nicholls added. “We’re looking and acting and being built like a fintech start-up. But actually we have that backing of NatWest and hopefully that’s an advantage.”

Banking beyond Main Street

Large lenders may have the advantage of history and a customer base far outstripping that of any fintech challenger. But they’re having to wind back on their brick and mortar operations as customers increasingly flock to digital banking. British banks have shuttered their branches at an alarming rate. Consumer rights organization Which? said last year that 60 bank branches are closing every month. In total, 1,080 branches across the U.K. have closed, or are set to be closed, in 2018 and 2019. That might simply be the direction things are leaning toward. Bo’s Nicholls said the banks of the future will be forced to go beyond Main Street, as younger people increasingly want to do most of their daily tasks via smartphone. “Everything is expected to be on their phones and on their apps,” she said, referring to younger bank customers, “and actually that is the way we need to go.” She notes that challenger banks have gained significant popularity, among young people in particular, and suggested big lenders are hoping to tap into that trend. According to the U.K. consultancy Caci, mobile banking is set to become more popular than visiting bank branches by 2021.

Profitability is another potential advantage for the big banks. While neobanks like Monzo and Revolut have scored millions of users between them, they’ve struggled to translate their wild growth into profits. Monzo reported a £33.1 million ($42.1 million) pre-tax loss last year, while Revolut racked up a £15.1 million loss in 2017. Nicholls said that Bo had the advantage of being associated with a major banking brand like RBS, a profitable lender. But it’s also an independent bank, and Nicholls says it will be able to operate at “zero marginal cost.” “We are able to operate our current account on a break-even basis, which is super important in that space,” Nicholls said. “It would be easy for us to be financially sustainable because we can leverage the wider group and use our deposit base as well.” Going on a hiring spree also helps, HSBC’s Bhatia said, adding the company’s retail banking division boasts talent from fintechs as well as big tech companies. “We built a global digital team over the last four years which has people from all sorts of backgrounds,” he said. “We have big tech talent, we have start-ups and of course we have our homegrown talent expertise.”

Are banks too slow?

While banks are touting their moves into digital as a sign of progress, some in the fintech industry think they aren’t moving fast enough.

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Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: ryan browne
Keywords: news, cnbc, companies, rise, fintechs, banks, bank, nicholls, banking, million, amid, edge, fintech, customers, uk, monzo, money, fledgling, trust, big, britains, competitive


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Asia stocks mostly edge up as Australia’s central bank slashes rates to new all-time low

Stocks in Asia mostly edged up on Tuesday, as the Reserve Bank of Australia (RBA) slashed its cash rate to a new all-time low. “Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. Blythe added that a third rate cut was likely “coming along,” with a cash rate lower than 1% likely to come before the end of 2019. That’s a question “particularly” for the U.S. Federal Reserve, he said, ahead of the central bank’s monetary policy meeting later


Stocks in Asia mostly edged up on Tuesday, as the Reserve Bank of Australia (RBA) slashed its cash rate to a new all-time low. “Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. Blythe added that a third rate cut was likely “coming along,” with a cash rate lower than 1% likely to come before the end of 2019. That’s a question “particularly” for the U.S. Federal Reserve, he said, ahead of the central bank’s monetary policy meeting later
Asia stocks mostly edge up as Australia’s central bank slashes rates to new all-time low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-02  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, rate, rates, trade, central, alltime, cash, bank, reserve, trading, australias, edge, rba, asia, slashes, meeting, low, banks


Asia stocks mostly edge up as Australia's central bank slashes rates to new all-time low

Over in Australia, the S&P/ASX 200 gained fractionally to end its trading day at 6,653.20 as most sectors advanced.

The Nikkei 225 in Japan added 0.11% to close at 21,754.27, while the Topix rose 0.31% to finish its trading day at 1,589.84. In South Korea, however, the Kospi slipped 0.36% close at 2,122.02.

Hong Kong’s Hang Seng index , which returned to trade after a holiday on Monday, jumped 1.26%, as of 3:16 p.m. HK/SIN.

Mainland Chinese stocks were mostly higher on the day, with the Shenzhen component gaining 0.16% to 9,545.52 and the Shenzhen composite adding 0.159% to 1,619.12. The Shanghai composite , on the other hand, was just below the flatline at 3,043.94.

Stocks in Asia mostly edged up on Tuesday, as the Reserve Bank of Australia (RBA) slashed its cash rate to a new all-time low.

The RBA announced earlier on Tuesday that it was cutting its cash rate by 25 basis points to a a new all-time low of 1%, marking its second straight month of easing after it slashed rates in June.

“Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target,” RBA Governor Philip Lowe said in a statement.

Following the widely expected decision by the Australian central bank, the Australian dollar changed hands at $0.6986, still below levels above $0.700 seen yesterday.

“If you’re focused on trying to squeeze out that excess capacity in the labor market, get a bit of wages growth going and … eventually getting back to your inflation target then … certainly a rate cut is the major weapon in the Reserve Bank’s arsenal and they’ve deployed it for the last two months,” Michael Blythe, chief economist at Commonwealth Bank, told CNBC’s “Capital Connection” minutes following the RBA announcement.

Blythe added that a third rate cut was likely “coming along,” with a cash rate lower than 1% likely to come before the end of 2019.

Meanwhile, investors cheered recent developments over the weekend on the U.S.-China trade front, with the two countries’ presidents agreeing not to slap new duties on each others goods after meeting at the G-20 summit in Osaka, Japan. U.S. President Donald Trump said Monday that trade talks between the two countries have “already begun. ”

“I think the question for a lot of central banks now after the G-20 is, how does this truce between China and Trump evolve?,” Wayne Gordon, commodity, rates and foreign exchange analyst at UBS Global Wealth Management, told CNBC’s “Street Signs” on Tuesday.

“If in the end there is a deal that comes of this, I think it’s still highly uncertain but if indeed there is, central banks may not be as worried about growth, particularly on the trade side, as what they would have been otherwise,” Gordon said.

That’s a question “particularly” for the U.S. Federal Reserve, he said, ahead of the central bank’s monetary policy meeting later this month. In June, the Fed opened the door to a possible future rate cut as it kept interest rates steady.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.759 after rising from levels below 96.6 in the previous session. The Japanese yen traded at 108.31 against the dollar following lows above 108.4 seen yesterday.

Oil prices recovered from an earlier slip to rise in the afternoon of Asian trading hours, as international benchmark Brent crude futures added 0.26% to $65.23 per barrel, while U.S. crude futures gained 0.14% to $59.17 per barrel.

The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend production cuts by nine months. The deal is subject to approval from non-OPEC allies, such as Russia, at a meeting on Tuesday.

— CNBC’s Fred Imbert contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-07-02  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, rate, rates, trade, central, alltime, cash, bank, reserve, trading, australias, edge, rba, asia, slashes, meeting, low, banks


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Asia stocks edge lower as investors watch for G-20 summit developments

Over in South Korea, the Kospi ended its trading day 0.17% lower at 2,130.62, while Australia’s S&P/ASX 200 fell 0.71% to close at 6,618.80. Mainland Chinese stocks slipped on the day, with the Shanghai composite lower by 0.6% to 2.978.88 and the Shenzhen component falling 0.66% to 9,178.31. Stocks in Asia Pacific dipped on Friday as investors watched for developments from the G-20 summit in Osaka, Japan, where U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet ami


Over in South Korea, the Kospi ended its trading day 0.17% lower at 2,130.62, while Australia’s S&P/ASX 200 fell 0.71% to close at 6,618.80. Mainland Chinese stocks slipped on the day, with the Shanghai composite lower by 0.6% to 2.978.88 and the Shenzhen component falling 0.66% to 9,178.31. Stocks in Asia Pacific dipped on Friday as investors watched for developments from the G-20 summit in Osaka, Japan, where U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet ami
Asia stocks edge lower as investors watch for G-20 summit developments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: eustance huang
Keywords: news, cnbc, companies, investors, stocks, summit, trade, japan, index, watch, edge, trading, shed, asia, g20, xi, developments, lower, president, told


Asia stocks edge lower as investors watch for G-20 summit developments

Over in South Korea, the Kospi ended its trading day 0.17% lower at 2,130.62, while Australia’s S&P/ASX 200 fell 0.71% to close at 6,618.80.

Hong Kong’s Hang Seng index declined more than 0.3%, as of its final hour of trading.

Mainland Chinese stocks slipped on the day, with the Shanghai composite lower by 0.6% to 2.978.88 and the Shenzhen component falling 0.66% to 9,178.31. The Shenzhen composite also shed 0.959% to 1,562.42.

In Japan, the Nikkei 225 slipped 0.29% to close at 21,275.92, with shares of index heavyweight and robot maker Fanuc declining 0.52%. The Topix index also shed 0.14% to end its trading day at 1,551.14.

Stocks in Asia Pacific dipped on Friday as investors watched for developments from the G-20 summit in Osaka, Japan, where U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet amid the ongoing trade standoff.

Overnight on Wall Street, the S&P 500 rose 0.4% to close at 2,924.92 and the Nasdaq Composite added 0.7% to end its trading day at 7,967.76. The Dow Jones Industrial Average, however, shed 10.24 points to close at 26,526.58.

Trump and Xi are scheduled to meet on Saturday at the G-20 summit in Japan, where they are expected to discuss trade, as investors watch for signs of whether the two countries can make progress toward ending their protracted trade fight.

“The end result if the negotiations are successful is likely to be something like the US removing all tariffs if China passes into law agreed changes to protect intellectual property, prevent forced technology transfer, etc,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, wrote in a note.

“It’s in both sides interests to get there given the economic damage the trade war is causing and we think they ultimately will but there is a long way to go and China may reason that its better to wait for a more conventional and respectful US president,” Oliver said.

Ahead of that meeting, sources told CNBC that China is looking for a ‘balanced ” trade deal at the summit, though the U.S. isn’t interested. An agreement between Trump and Xi at the G-20 summit in Japan could avert the next round of tariffs on additional $300 billion worth of Chinese imports.

At the G-20 summit, Xi told a meeting of the BRICS (Brazil, Russia, India, China, South Africa) countries’ leaders that protectionist measures being taken by some developed countries are damaging the global trade order.

Charles Freeman, senior vice president for Asia at the U.S. Chamber of Commerce, told CNBC that any potential new tariffs may “not necessarily” mean the full 25% duties being slapped on the entire $300 billion worth of Chinese imports.

“It’s up to $300 billion and up to 25%,” he told CNBC’s “Squawk Box” on Friday. “There’s a lot of leeway for … the U.S. administration to maneuver on this new tranche. We’re choosing to be optimistic that that will be put aside and the two sides will get … back to the table and begin to negotiate a serious outcome.”

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.114 after seeing levels above 96.3 yesterday.

The Japanese yen traded at 107.67 against the dollar after touching levels above 108.0 in the previous session. The Australian dollar changed hands at $0.7014 after rising from levels below $0.700 yesterday.

Oil prices were lower in the afternoon of Asian trading hours, with international benchmark Brent crude futures declining 0.44% to $66.26 per barrel, and U.S. crude futures shed 0.42% to $59.18 per barrel.

— CNBC’s Fred Imbert contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-06-28  Authors: eustance huang
Keywords: news, cnbc, companies, investors, stocks, summit, trade, japan, index, watch, edge, trading, shed, asia, g20, xi, developments, lower, president, told


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