China stocks surge more than 4 percent, extending Friday’s rally

Asia Pacific markets mostly rose on Monday as major Chinese indexes leaped more than 4 percent. Earlier in the day, the index saw gains of more than 4.5 percent. The moves followed Friday’s rally in Chinese stocks as authorities took steps to support the market after the release of weaker-than-expected GDP data. One market observer, however, voiced skepticism over the recent rally in mainland Chinese stocks. In Hong Kong, the Hang Seng index rose 2.22 percent in afternoon trade.


Asia Pacific markets mostly rose on Monday as major Chinese indexes leaped more than 4 percent. Earlier in the day, the index saw gains of more than 4.5 percent. The moves followed Friday’s rally in Chinese stocks as authorities took steps to support the market after the release of weaker-than-expected GDP data. One market observer, however, voiced skepticism over the recent rally in mainland Chinese stocks. In Hong Kong, the Hang Seng index rose 2.22 percent in afternoon trade.
China stocks surge more than 4 percent, extending Friday’s rally Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: eustance huang, vcg, visual china group, getty images
Keywords: news, cnbc, companies, chinese, fridays, day, close, end, trade, gained, extending, surge, index, rally, rose, china, stocks, menon


China stocks surge more than 4 percent, extending Friday's rally

Asia Pacific markets mostly rose on Monday as major Chinese indexes leaped more than 4 percent.

The Shanghai composite added 4.09 percent to close at around 2,654.88. Earlier in the day, the index saw gains of more than 4.5 percent.

Elsewhere, the Shenzhen composite gained 4.899 percent to close at about 1,325.73.

The moves followed Friday’s rally in Chinese stocks as authorities took steps to support the market after the release of weaker-than-expected GDP data.

One market observer, however, voiced skepticism over the recent rally in mainland Chinese stocks.

“Eventually, at the end of the day, fundamentals will still rule,” Vasu Menon, vice president of group wealth management at OCBC Bank told CNBC’s “Street Signs” on Monday morning.

Menon pointed out there were lingering concerns over Beijing’s trade war with Washington. “It doesn’t look like it’s going to end anytime soon,” he said.

“You see a rebound today, but does it mean that the markets have turned a corner and you know, will hit higher? I’m not sure. I don’t think so,” Menon said.

In Japan, the Nikkei 225 erased earlier losses to close 0.37 percent higher at 22,614.82 while the Topix index gained 0.15 percent to end the trading day at 1,695.31. South Korea’s Kospi gained 0.25 percent to close at 2,161.71. In Hong Kong, the Hang Seng index rose 2.22 percent in afternoon trade.


Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: eustance huang, vcg, visual china group, getty images
Keywords: news, cnbc, companies, chinese, fridays, day, close, end, trade, gained, extending, surge, index, rally, rose, china, stocks, menon


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Falling growth stocks signal ‘end of the bull market,’ trader says

If growth equities continue to fall, “that’s the end of the bull market right there,” Grasso, the director of institutional sales at Stuart Frankel, said on “Power Lunch.” Traditionally high-growth tech stocks have taken the biggest hit. In fact, Weiss is concerned about the outsized influence of the technology sector on the bull market. “Once you look outside the U.S. tech sector, it’s really a bloodbath out there, and that has a dramatic effect on our economy.” Among the reasons for the sellin


If growth equities continue to fall, “that’s the end of the bull market right there,” Grasso, the director of institutional sales at Stuart Frankel, said on “Power Lunch.” Traditionally high-growth tech stocks have taken the biggest hit. In fact, Weiss is concerned about the outsized influence of the technology sector on the bull market. “Once you look outside the U.S. tech sector, it’s really a bloodbath out there, and that has a dramatic effect on our economy.” Among the reasons for the sellin
Falling growth stocks signal ‘end of the bull market,’ trader says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: carmin chappell
Keywords: news, cnbc, companies, rising, trader, growth, weiss, falling, end, signal, sector, stocks, thats, worries, tech, market, bull


Falling growth stocks signal 'end of the bull market,' trader says

Once you look outside the US tech sector, it’s a ‘blood bath,’ expert says 16 Hours Ago | 02:55

Growth stocks, which have been leading the stock market, are starting to fade — and that’s not a good sign, trader Steve Grasso told CNBC on Thursday.

If growth equities continue to fall, “that’s the end of the bull market right there,” Grasso, the director of institutional sales at Stuart Frankel, said on “Power Lunch.”

U.S. stocks fell on Thursday, adding to October’s already steep losses. The Dow Jones Industrial Average and S&P 500 have fallen more than 4 percent each, while the Nasdaq is down more than 7 percent this month. Traditionally high-growth tech stocks have taken the biggest hit.

Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments, said this could be the end of the recovery.

“You have all the classic signs: Corporate earnings decelerating, … economic growth decelerating, rising rates at the short and the long end of the curve and a … painfully narrowly focused bull market in certain sectors and primarily certain stocks,” Weiss said on “Power Lunch.”

“Cash is still in the running to be king, if not this year, certainly next,” he added.

In fact, Weiss is concerned about the outsized influence of the technology sector on the bull market.

“This economic recovery has been very narrowly perched within the U.S.,” he said. “Once you look outside the U.S. tech sector, it’s really a bloodbath out there, and that has a dramatic effect on our economy.”

Among the reasons for the selling on Thursday, according to investors, were worries about the U.S.-China trade war, rising interest rates and lingering worries about possible overvalued U.S. tech stocks.

— CNBC’s Fred Imbert contributed to this report.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: carmin chappell
Keywords: news, cnbc, companies, rising, trader, growth, weiss, falling, end, signal, sector, stocks, thats, worries, tech, market, bull


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Stephen Hawking feared that a rich, ‘superhuman’ species is set to end humanity

Stephen Hawking has suggested that the advance of genetic engineering might lead to a new species of superhuman that could destroy the rest of humanity. The posthumous book, titled “Brief Answers to the Big Questions,” is a collection of Hawking’s articles and essays that outline Hawking’s final thoughts on the universe. In one section, Hawking described an apocalyptic scenario should genetic engineering favor people who could afford to make themselves smarter, more disease resistant, and likely


Stephen Hawking has suggested that the advance of genetic engineering might lead to a new species of superhuman that could destroy the rest of humanity. The posthumous book, titled “Brief Answers to the Big Questions,” is a collection of Hawking’s articles and essays that outline Hawking’s final thoughts on the universe. In one section, Hawking described an apocalyptic scenario should genetic engineering favor people who could afford to make themselves smarter, more disease resistant, and likely
Stephen Hawking feared that a rich, ‘superhuman’ species is set to end humanity Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-16  Authors: david reid, bruno vincent, getty images news, getty images, cnbc, darren weaver
Keywords: news, cnbc, companies, stephen, species, rich, genetic, engineering, physicist, set, superhuman, work, hawkings, humans, theory, feared, end, final, hawking, titled, humanity


Stephen Hawking feared that a rich, 'superhuman' species is set to end humanity

Stephen Hawking has suggested that the advance of genetic engineering might lead to a new species of superhuman that could destroy the rest of humanity.

The world-famous physicist and author, who died in March aged 76, has laid down the theory in his new book, released Tuesday. The posthumous book, titled “Brief Answers to the Big Questions,” is a collection of Hawking’s articles and essays that outline Hawking’s final thoughts on the universe.

In one section, Hawking described an apocalyptic scenario should genetic engineering favor people who could afford to make themselves smarter, more disease resistant, and likely to live longer.

“Once such superhumans appear, there will be significant political problems with unimproved humans, who won’t be able to compete,” Hawking wrote before adding “presumably, they will die out, or become unimportant.”

The physicist said he expected laws to be put in place to prevent genetic engineering in humans but ultimately some would not be able to “resist the temptation” to improve their human capabilities.

In March, it was revealed that Hawking had also made a theory outlining a separate prediction for the end of the world. Hawking’s final work when alive — titled “A Smooth Exit From Eternal Inflation” — predicted how our universe would eventually fade to darkness as the stars run out of energy.

The physicist, who was perhaps best known for his work on black holes and the theory of relativity, has also previously pushed the theory that Earth will turn into a giant ball of fire by 2600.

WATCH:Ford is using bionic suits to help employees work safer


Company: cnbc, Activity: cnbc, Date: 2018-10-16  Authors: david reid, bruno vincent, getty images news, getty images, cnbc, darren weaver
Keywords: news, cnbc, companies, stephen, species, rich, genetic, engineering, physicist, set, superhuman, work, hawkings, humans, theory, feared, end, final, hawking, titled, humanity


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

We want the ‘war of words’ with the EU over Italy’s budget to end, Lega advisor says

Proposed budget is what Italy needs to cope with lack of growth, Lega advisor says 6 Hours Ago | 03:38The spending plans proposed by Italy’s coalition government might have caused a rift with Europe, but they are just what the country needs to grow, an economic advisor for the Lega party told CNBC on Tuesday. “I do hope that at the end the war of words (will end) and that good sense will prevail and everyone will notice that this kind of budget is exactly what Italy needs to cope with its chroni


Proposed budget is what Italy needs to cope with lack of growth, Lega advisor says 6 Hours Ago | 03:38The spending plans proposed by Italy’s coalition government might have caused a rift with Europe, but they are just what the country needs to grow, an economic advisor for the Lega party told CNBC on Tuesday. “I do hope that at the end the war of words (will end) and that good sense will prevail and everyone will notice that this kind of budget is exactly what Italy needs to cope with its chroni
We want the ‘war of words’ with the EU over Italy’s budget to end, Lega advisor says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-16  Authors: holly ellyatt, pier marco tacca, getty images europe
Keywords: news, cnbc, companies, war, needs, advisor, spiral, eu, italy, plans, budget, lega, italys, end, lack, spending, words, told


We want the 'war of words' with the EU over Italy's budget to end, Lega advisor says

Proposed budget is what Italy needs to cope with lack of growth, Lega advisor says 6 Hours Ago | 03:38

The spending plans proposed by Italy’s coalition government might have caused a rift with Europe, but they are just what the country needs to grow, an economic advisor for the Lega party told CNBC on Tuesday.

“I do hope that at the end the war of words (will end) and that good sense will prevail and everyone will notice that this kind of budget is exactly what Italy needs to cope with its chronic lack of growth,” Lega politician and economic spokesperson Claudio Borghi told CNBC.

“The only problem is the lack of growth and this is driven by a lack of internal demand, so the only thing that we cannot do is to do something that is going to depress internal demand further.”

Borghi said that Italy needed to “start the engine” and that the country, the third largest economy in the euro zone, had been caught in a “death spiral” becuase of austerity policies that had failed in their objectives.

“It was a death spiral because people got taxed more, they spent less, companies shut down and they fired people and basically it was a doom loop. Now, we have to have the initial push to reverse this kind of spiral and I think this (the budget) is the right thing to do,” Borghi told CNBC’s Willem Marx on Tuesday.

Borghi’s comments come a day after Italy’s coalition government — made up of the right-wing Lega party and anti-establishment Five Star Movement — submitted its 2019 draft budget proposals to the European Commission which now has to accept or reject the expansionary budget.

Needless to say, Italy’s plans to increase social welfare spending, cut some taxes and lower the retirement age, as well as the proposal to introduce a universal income for the poor, are not likely to go down well in Brussels where European fiscal rules are set and promoted.

Most problematically for the European Commission is Italy’s U-turn on a previously agreed budget deficit target of 1.8 percent of gross domestic product (GDP). Now, Italy’s spending plans forecast a budget deficit of 2.4 percent in 2019.


Company: cnbc, Activity: cnbc, Date: 2018-10-16  Authors: holly ellyatt, pier marco tacca, getty images europe
Keywords: news, cnbc, companies, war, needs, advisor, spiral, eu, italy, plans, budget, lega, italys, end, lack, spending, words, told


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Tesla produced 7,400 Model 3s as the quarter kicks off, report says

Overall, the automaker has made 11,500 cars total since the quarter started through early Friday, Electrek said. Tesla has struggled with production on the Model 3 in the past. It had originally aimed to make 5,000 cars a week at the end of 2017 but did not reach that goal until the end of the second quarter this year. (Correction: The media report was based on the first 11 days of production in October, and therefore Tesla is approaching its goal. An earlier version of this story misstated the


Overall, the automaker has made 11,500 cars total since the quarter started through early Friday, Electrek said. Tesla has struggled with production on the Model 3 in the past. It had originally aimed to make 5,000 cars a week at the end of 2017 but did not reach that goal until the end of the second quarter this year. (Correction: The media report was based on the first 11 days of production in October, and therefore Tesla is approaching its goal. An earlier version of this story misstated the
Tesla produced 7,400 Model 3s as the quarter kicks off, report says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-12  Authors: robert ferris, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, model, tesla, report, kicks, 3s, end, 7400, produced, cars, week, goal, automaker, production, quarter, version


Tesla produced 7,400 Model 3s as the quarter kicks off, report says

Overall, the automaker has made 11,500 cars total since the quarter started through early Friday, Electrek said.

Tesla has struggled with production on the Model 3 in the past. It had originally aimed to make 5,000 cars a week at the end of 2017 but did not reach that goal until the end of the second quarter this year. However the company did deliver more vehicles in the third quarter than analysts expected. At the time, the automaker said production had stabilized.

Tesla declined to comment.

Read the full story at Electrek.

(Correction: The media report was based on the first 11 days of production in October, and therefore Tesla is approaching its goal. An earlier version of this story misstated the period of time in the report, and concluded Tesla was falling short.)


Company: cnbc, Activity: cnbc, Date: 2018-10-12  Authors: robert ferris, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, model, tesla, report, kicks, 3s, end, 7400, produced, cars, week, goal, automaker, production, quarter, version


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

This sell-off was long overdue and is likely not the end of the bull market

If the market always speaks a message, then Wednesday’s 800-point tumble in the Dow Industrials and 3.3 percent break in the S&P 500 can be considered the market shouting for attention. Let’s first note that Wednesday’s message, dramatic as it was, was not really a new one, but an accelerated version of market action that’s been evident for weeks. The small-cap Russell 2000 was already down 7 percent from its high even as the S&P 500 held near a record. So the big one-day drop was essentially th


If the market always speaks a message, then Wednesday’s 800-point tumble in the Dow Industrials and 3.3 percent break in the S&P 500 can be considered the market shouting for attention. Let’s first note that Wednesday’s message, dramatic as it was, was not really a new one, but an accelerated version of market action that’s been evident for weeks. The small-cap Russell 2000 was already down 7 percent from its high even as the S&P 500 held near a record. So the big one-day drop was essentially th
This sell-off was long overdue and is likely not the end of the bull market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: michael santoli, spencer platt, getty images
Keywords: news, cnbc, companies, stocks, wednesdays, 500, selloff, note, near, sp, long, likely, market, overdue, large, message, majority, end, bull


This sell-off was long overdue and is likely not the end of the bull market

If the market always speaks a message, then Wednesday’s 800-point tumble in the Dow Industrials and 3.3 percent break in the S&P 500 can be considered the market shouting for attention.

But what is it saying, and how can investors separate the signals from the noise?

Let’s first note that Wednesday’s message, dramatic as it was, was not really a new one, but an accelerated version of market action that’s been evident for weeks. As noted here and everywhere since mid-summer, an unusually large number of stocks have been lagging the rally in the headline indexes. The small-cap Russell 2000 was already down 7 percent from its high even as the S&P 500 held near a record. Housing, auto, airline and semiconductor stocks – to name a few groups – were in steep downturns.

So the big one-day drop was essentially the large-stock benchmarks succumbing to the pressure that had already cheapened the majority of stocks.

This can be viewed as a positive, because by Wednesday’s close the market looks a good deal more “oversold” and washed out than was the case at the start of the January-February correction, which came with most stocks stretched far to the upside.

So the morning damage assessment shows many of the usual prerequisites for a market bounce in place: Strategist Tony Dwyer of Canaccord Genuity – who has been bullish but expecting volatility and waiting for a better tactical entry point – notes that only one-sixth of S&P 500 stocks finished above their 10-day moving average and just 23 percent of index members are above their 50-day average. That fits with the idea of a comprehensive rout in the majority of stocks, which can present lower-risk rebound opportunities. Note that these readings were much more extreme near the low in February – which makes sense because the total index losses were about twice as large then.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: michael santoli, spencer platt, getty images
Keywords: news, cnbc, companies, stocks, wednesdays, 500, selloff, note, near, sp, long, likely, market, overdue, large, message, majority, end, bull


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

This is not the end of the bull market — it’s just noise, chief economist says

Market sell-off is ‘noise’ and not the end of bull market: UBS’ Donovan 11 Hours Ago | 06:31Global markets plummeted Thursday, fueling concern that long-term positive market trends could be about to end — but UBS’ chief economist has branded those fears as simply “noise.” The sharp decline has raised concerns that trade tensions and rising interest rates could contribute to the end of the bull market – the current state of trading where stock prices are steadily rising. Paul Donovan, chief econo


Market sell-off is ‘noise’ and not the end of bull market: UBS’ Donovan 11 Hours Ago | 06:31Global markets plummeted Thursday, fueling concern that long-term positive market trends could be about to end — but UBS’ chief economist has branded those fears as simply “noise.” The sharp decline has raised concerns that trade tensions and rising interest rates could contribute to the end of the bull market – the current state of trading where stock prices are steadily rising. Paul Donovan, chief econo
This is not the end of the bull market — it’s just noise, chief economist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: chloe taylor
Keywords: news, cnbc, companies, ubs, trade, chief, noise, economist, taxes, donovan, hurt, market, markets, longterm, economy, end, bull


This is not the end of the bull market — it's just noise, chief economist says

Market sell-off is ‘noise’ and not the end of bull market: UBS’ Donovan 11 Hours Ago | 06:31

Global markets plummeted Thursday, fueling concern that long-term positive market trends could be about to end — but UBS’ chief economist has branded those fears as simply “noise.”

Thursday saw stocks tank in markets around the globe. Asia-Pacific indexes like the Shanghai composite fell 5 percent while the pan-European Euro Stoxx 600 Index hit its lowest in 20 months. The sharp decline has raised concerns that trade tensions and rising interest rates could contribute to the end of the bull market – the current state of trading where stock prices are steadily rising.

Paul Donovan, chief economist for UBS, told CNBC that Thursday’s tremors would not have a long-term impact, dubbing the recent challenges for investors as mild constraints that were “not that important economically.”

“Trade taxes will hurt equities far more than they hurt the economy, because about 80 percent of global trade is conducted by large multinational companies,” he said.

“Large-listed companies in the States are only 25 percent of the economy. As we start to see the cost of the trade taxes creeping into supply chains, it is going to create volatility in the equity markets while the economy carries on OK, which is why I think the (U.S. Federal Reserve) is right to be following this hike-pause cycle.”

Adding that almost half of America does not own any equities, Donovan emphasized that to the majority of Americans the market decline was “not devastating.”

“They’ve still got jobs, they’re still getting pay rises — that’s what matters to the economic cycle,” he said. “The economic cycle carries on and the Fed will judiciously change quantitative and monetary policy.”

Donovan also noted that U.S. Treasurys (U.S. government bonds) were seeing slower investment from foreign central banks.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: chloe taylor
Keywords: news, cnbc, companies, ubs, trade, chief, noise, economist, taxes, donovan, hurt, market, markets, longterm, economy, end, bull


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Asia stocks crumble: Shanghai topples more than 5%, Nikkei declines nearly 4%

Asia markets fell sharply on Thursday, with the stock indexes in Shanghai and Shenzhen both tumbling more than 5 percent. In the Greater China region, the Hang Seng index was down by 3.88 percent in afternoon trade. Over on the mainland, the Shanghai composite fell 5.22 percent to close at 2,583.46 and the Shenzhen composite plunged 6.445 percent to end at 1,293.90. The fall in the Shanghai index was its worst day since February 2016, according to Chinese financial services firm Wind Information


Asia markets fell sharply on Thursday, with the stock indexes in Shanghai and Shenzhen both tumbling more than 5 percent. In the Greater China region, the Hang Seng index was down by 3.88 percent in afternoon trade. Over on the mainland, the Shanghai composite fell 5.22 percent to close at 2,583.46 and the Shenzhen composite plunged 6.445 percent to end at 1,293.90. The fall in the Shanghai index was its worst day since February 2016, according to Chinese financial services firm Wind Information
Asia stocks crumble: Shanghai topples more than 5%, Nikkei declines nearly 4% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: eustance huang
Keywords: news, cnbc, companies, shenzhen, day, fell, dropped, asia, shanghai, close, nearly, markets, nikkei, topples, end, stocks, index, crumble, composite, declines


Asia stocks crumble: Shanghai topples more than 5%, Nikkei declines nearly 4%

Asia markets fell sharply on Thursday, with the stock indexes in Shanghai and Shenzhen both tumbling more than 5 percent.

In the Greater China region, the Hang Seng index was down by 3.88 percent in afternoon trade. Over on the mainland, the Shanghai composite fell 5.22 percent to close at 2,583.46 and the Shenzhen composite plunged 6.445 percent to end at 1,293.90.

The fall in the Shanghai index was its worst day since February 2016, according to Chinese financial services firm Wind Information.

In Taiwan, the tech-heavy Taiex dropped by 6.31 percent to close at 9,806.11, with shares of lens maker and Apple supplier Largan Precision plunging 9.89 percent.

Japan’s markets also faltered. The Nikkei 225 dropped by 3.89 percent to close at 22,590.86 while the Topix index declined by 3.52 percent to end the trading day at 1,701.86, with major sectors down.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: eustance huang
Keywords: news, cnbc, companies, shenzhen, day, fell, dropped, asia, shanghai, close, nearly, markets, nikkei, topples, end, stocks, index, crumble, composite, declines


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

US economy like the Titanic — moving at full steam, with an iceberg ahead: Guggenheim

The U.S. economy is moving full steam ahead but trouble is looming and it is courtesy of the Federal Reserve, Guggenheim’s head of investing told CNBC on Wednesday. In fact, earlier in the day on Twitter he compared it to the ill-fated Titanic, moving full steam ahead with an iceberg looming. The S&P 500 dropped 3.3 percent and fell below its 50-day moving average, a widely followed technical level. Minerd has been warning about trouble ahead for the economy and the markets. Last week, Minerd tw


The U.S. economy is moving full steam ahead but trouble is looming and it is courtesy of the Federal Reserve, Guggenheim’s head of investing told CNBC on Wednesday. In fact, earlier in the day on Twitter he compared it to the ill-fated Titanic, moving full steam ahead with an iceberg looming. The S&P 500 dropped 3.3 percent and fell below its 50-day moving average, a widely followed technical level. Minerd has been warning about trouble ahead for the economy and the markets. Last week, Minerd tw
US economy like the Titanic — moving at full steam, with an iceberg ahead: Guggenheim Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: michelle fox
Keywords: news, cnbc, companies, iceberg, end, probably, market, think, economy, moving, trouble, steam, stock, guggenheim, going, ahead, titanic


US economy like the Titanic — moving at full steam, with an iceberg ahead: Guggenheim

The U.S. economy is moving full steam ahead but trouble is looming and it is courtesy of the Federal Reserve, Guggenheim’s head of investing told CNBC on Wednesday.

“Ultimately this expansion will end and it is going to end because monetary policy is going to get too tight at the same time fiscal policy is going to turn into fiscal drag in 2020,” said Scott Minerd, the firm’s global chief investment officer and chairman of investments. Guggenheim has $265 billion of assets under management.

“When we get there … our work is showing us that the stock market will probably pull back 40 percent from the highs and that we’ll probably see credit spreads widen dramatically,” he said on “Power Lunch.” “Corporate America is overlevered.”

In fact, earlier in the day on Twitter he compared it to the ill-fated Titanic, moving full steam ahead with an iceberg looming.

Stocks plunged on Wednesday, with the Dow Jones Industrial Average closing down more than 800 points. The S&P 500 dropped 3.3 percent and fell below its 50-day moving average, a widely followed technical level. The Nasdaq composite plummeted 4 percent.

Minerd doesn’t see the recent market action as a harbinger of a crash but instead said it is a standard seasonal sell-off.

Veteran trader Art Cashin agrees, calling the market rout partially seasonal and partially a case of weakness driving further weakness.

“I do think it’s a bit of a calendar item and when we get past these first few weeks [of October], things may slow down a little,” said Cashin, UBS director of floor operations at the New York Stock Exchange, on CNBC’s “Closing Bell.”

Minerd predicts there will be a bottom sometime before the end of the month.

“It’s too soon to call the end of the bull market but over the course of the next six to 12 months I think people should probably take their profits and bunker down for the next recession,” he said.

Minerd has been warning about trouble ahead for the economy and the markets. Earlier this year, he said the market was on a “collision course with disaster” and predicted a sharp recession and the 40 percent decline in stocks.

Last week, Minerd tweeted that rising rates and declining stocks echo shades of October 1987, when the stock market crashed.

Minerd said Wednesday that he’s been taking risk off and will slowly continue to do so into the early part of next year. At that time, he hopes to be positioned correctly for the next downturn.

— CNBC’s Stefanie Kratter and Fred Imbert contributed to this report.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: michelle fox
Keywords: news, cnbc, companies, iceberg, end, probably, market, think, economy, moving, trouble, steam, stock, guggenheim, going, ahead, titanic


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Trump will order changes in biofuel rules in bid to end feud between farm states and oil refiners

The Trump administration will seek to reform two parts of the nation’s policy to promote biofuels, marking its latest attempt to reach a mutually beneficial outcome for two of the president’s key constituencies: the fossil fuel industry and farm states. The change is calculated to shore up demand for biofuels such as corn-based ethanol and boost the fortunes of farmers. E15 sales are currently blocked from the beginning of June through the middle of September because the fuel blend does not meet


The Trump administration will seek to reform two parts of the nation’s policy to promote biofuels, marking its latest attempt to reach a mutually beneficial outcome for two of the president’s key constituencies: the fossil fuel industry and farm states. The change is calculated to shore up demand for biofuels such as corn-based ethanol and boost the fortunes of farmers. E15 sales are currently blocked from the beginning of June through the middle of September because the fuel blend does not meet
Trump will order changes in biofuel rules in bid to end feud between farm states and oil refiners Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: tom dichristopher
Keywords: news, cnbc, companies, rules, administration, oil, white, feud, blend, biofuels, market, farm, order, trump, refiners, changes, official, fuel, wheeler, end, states, nations


Trump will order changes in biofuel rules in bid to end feud between farm states and oil refiners

The Trump administration will seek to reform two parts of the nation’s policy to promote biofuels, marking its latest attempt to reach a mutually beneficial outcome for two of the president’s key constituencies: the fossil fuel industry and farm states.

President Donald Trump will order acting EPA Administrator Andrew Wheeler to start the process of lifting a summertime ban on the sale of E15, a type of gasoline-biofuel blend, according to a senior White House official. The change is calculated to shore up demand for biofuels such as corn-based ethanol and boost the fortunes of farmers.

E15 sales are currently blocked from the beginning of June through the middle of September because the fuel blend does not meet ozone standards spelled out in the Clean Air Act.

At the same time, the Trump administration will aim to limit speculation in the market for biofuel credits, the official told reporters Monday. The nation’s refiners have long complained that the obscure market is flawed, resulting in price spikes that drive up the cost of complying with federal rules and putting financial pressure on small refineries.

Trump will headline a rally in Council Bluffs, Iowa on Tuesday evening. He is expected to issue the orders prior to the event.


Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: tom dichristopher
Keywords: news, cnbc, companies, rules, administration, oil, white, feud, blend, biofuels, market, farm, order, trump, refiners, changes, official, fuel, wheeler, end, states, nations


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post