Trump announces John Kelly to depart White House by year’s end

John Kelly is expected to depart his role as White House Chief of Staff by the end of the year, President Donald Trump said on Saturday, ending a tenure marked by tensions with his boss and confrontations with other key administration figures. The president announced the news on the front lawn on the White House, following days of swirling speculation around the retired Marine Corps general’s exit for months amid disagreements with Trump. Nevertheless, in his brief remarks to reporters, Trump ca


John Kelly is expected to depart his role as White House Chief of Staff by the end of the year, President Donald Trump said on Saturday, ending a tenure marked by tensions with his boss and confrontations with other key administration figures. The president announced the news on the front lawn on the White House, following days of swirling speculation around the retired Marine Corps general’s exit for months amid disagreements with Trump. Nevertheless, in his brief remarks to reporters, Trump ca
Trump announces John Kelly to depart White House by year’s end Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-08  Authors: jacob pramuk, javier e david, christina wilkie, tucker higgins, saul loeb, afp, getty images
Keywords: news, cnbc, companies, kelly, house, months, chief, reported, depart, staff, end, john, trump, ayers, white, president, announces


Trump announces John Kelly to depart White House by year's end

John Kelly is expected to depart his role as White House Chief of Staff by the end of the year, President Donald Trump said on Saturday, ending a tenure marked by tensions with his boss and confrontations with other key administration figures.

Kelly’s departure follows several months of controversy and turmoil, and comes at a time when the president’s agenda is imperiled by a midterm election in which Democrats recaptured the House of Representatives. The chief of staff vacancy is just the latest changing of the guard at the administration’s highest levels, which includes the U.S. Attorney General, United Nations ambassador and Joint Chiefs of Staff.

The president announced the news on the front lawn on the White House, following days of swirling speculation around the retired Marine Corps general’s exit for months amid disagreements with Trump. Nevertheless, in his brief remarks to reporters, Trump called Kelly “a great guy” and that he appreciated his service.

“We’ll be announcing who will be taking John’s place” over the next day or two, Trump said, en route to the annual Army-Navy football game. Vice President Mike Pence’s chief of staff, Nick Ayers, is reportedly among the candidates who could succeed Kelly, but Reuters reported that the parties were still thrashing out the details.

NBC News and The New York Times reported on Saturday that Ayers was only willing to commit to an interim term through the spring, as his family is expected return to Georgia, citing people familiar with the discussions. Yet the president, eager to tamp down on the storyline of his White House in chaos, wants Ayers to stay on full time.


Company: cnbc, Activity: cnbc, Date: 2018-12-08  Authors: jacob pramuk, javier e david, christina wilkie, tucker higgins, saul loeb, afp, getty images
Keywords: news, cnbc, companies, kelly, house, months, chief, reported, depart, staff, end, john, trump, ayers, white, president, announces


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Markets are turning up the heat on the Fed to dial back rate hikes

Futures markets Thursday pointed to a 68 percent probability of an increase before 2018 ends. That’s still high, but it’s the lowest chance since late August, when the stock market was experiencing some minor choppiness. The latest adjustment has come as the market worries over the prospects of economic growth after a robust year. Markets are thus expecting the Fed to alter its projections for three rate hikes in 2019 and another one or two in 2020. While pricing in the strong chance of a Decemb


Futures markets Thursday pointed to a 68 percent probability of an increase before 2018 ends. That’s still high, but it’s the lowest chance since late August, when the stock market was experiencing some minor choppiness. The latest adjustment has come as the market worries over the prospects of economic growth after a robust year. Markets are thus expecting the Fed to alter its projections for three rate hikes in 2019 and another one or two in 2020. While pricing in the strong chance of a Decemb
Markets are turning up the heat on the Fed to dial back rate hikes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: jeff cox, adam jeffery
Keywords: news, cnbc, companies, fed, chance, markets, dial, rate, worries, pricing, heat, hikes, market, end, economic, range, turning


Markets are turning up the heat on the Fed to dial back rate hikes

Futures markets Thursday pointed to a 68 percent probability of an increase before 2018 ends. That’s still high, but it’s the lowest chance since late August, when the stock market was experiencing some minor choppiness. The likelihood also dipped to around 69 percent in mid-November as Fed officials were busy walking back some of the hawkish talk from central bank Chairman Jerome Powell in early October.

The latest adjustment has come as the market worries over the prospects of economic growth after a robust year. Movement in the bond market is pointing to some worries ahead, as shorter-dated yields are marginally ahead of longer-dated counterparts, often a sign of a slowdown ahead.

Markets are thus expecting the Fed to alter its projections for three rate hikes in 2019 and another one or two in 2020. In fact, there’s nearly a 50-50 chance indicated that by December 2019, the Fed will take back one of its increases and end up in the same range as the end of 2018.

“The Fed will stop hiking and will lower forward guidance, but, given the level of rates, the transition period that has begun will continue both in the US and elsewhere in the world,” Blitz said. “Markets will consequently stabilize but remain volatile while traditional economic guideposts will prove less valuable. Risks abound.”

While pricing in the strong chance of a December hike, implied pricing in the market shows a funds rate of just 2.6 percent by the time 2020 rolls around. That translates to a target range of, at most, 2.5 percent to 2.75 percent, or one more from the 2.25 percent to 2.5 percent range that a December move would bring.


Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: jeff cox, adam jeffery
Keywords: news, cnbc, companies, fed, chance, markets, dial, rate, worries, pricing, heat, hikes, market, end, economic, range, turning


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Italy is in a honeymoon period that will end in 2-3 months, former prime minister warns

The anti-establishment government in Rome is going through a “honeymoon” phase, with rising popularity, but that will not last longer than two to three months, former Prime Minister Enrico Letta told CNBC on Wednesday. This, coupled with its strong opposition to receiving more migrants and being subject to tough European fiscal rules, has boosted the popularity of the two deputy prime ministers and party leaders. “Italy today is living a honeymoon for the present government,” Letta told CNBC’s G


The anti-establishment government in Rome is going through a “honeymoon” phase, with rising popularity, but that will not last longer than two to three months, former Prime Minister Enrico Letta told CNBC on Wednesday. This, coupled with its strong opposition to receiving more migrants and being subject to tough European fiscal rules, has boosted the popularity of the two deputy prime ministers and party leaders. “Italy today is living a honeymoon for the present government,” Letta told CNBC’s G
Italy is in a honeymoon period that will end in 2-3 months, former prime minister warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: silvia amaro
Keywords: news, cnbc, companies, minister, period, 23, told, fiscal, europe, honeymoon, think, letta, prime, end, rome, months, opposition, european, warns, italy


Italy is in a honeymoon period that will end in 2-3 months, former prime minister warns

The anti-establishment government in Rome is going through a “honeymoon” phase, with rising popularity, but that will not last longer than two to three months, former Prime Minister Enrico Letta told CNBC on Wednesday.

The coalition between the leftist Five Star Movement (M5S) and the right-wing Lega came to power in early June; it promised to revive the economy by giving more money to the poor and reduce taxes. This, coupled with its strong opposition to receiving more migrants and being subject to tough European fiscal rules, has boosted the popularity of the two deputy prime ministers and party leaders.

At the same time, the opposition parties, including the liberal Partido Democratico, have struggled to fight rising populist sentiment.

“Italy today is living a honeymoon for the present government,” Letta told CNBC’s Geoff Cutmore. “I think in the next two to three months that honeymoon will change. The key problem is how to have an opposition ready, fresh with some new good ideas and not repetition of the old mistakes.”

The Italian government is at odds with the European Commission over its spending plans for 2019. The executive wants to deliver on its campaign promises, but Brussels says these measures risk the stability of the Italian economy.

Italy has the second highest debt pile in Europe and one of the largest in the world at 130 percent of debt to gross domestic product (GDP). The European Commission wants Rome to bring that level down, but it forecasts that the new policy direction will not allow that.

“Italy needs absolutely to find a compromise with Europe, Italy needs to lower the spread, to lower interest rates, if not it will be, I think, a continuous decline in the figure (of GDP),” Letta said. “I strongly hope the government will understand they need to negotiate.”

The spat with Europe has sparked concerns in financial markets, which has resulted in higher interest rates for Rome. Investors have become worried that the new government will disrespect European fiscal rules and shake the third largest euro economy.

Giovanni Tria, Italy’s finance minister, has told European officials not to worry about the fiscal plans. He promised that by implementing several measures, such as increasing privatizations, Italy will not breach the EU-wide 3 percent deficit rule.

“It is important to know Italy was the country in the ’90s and early 2000s that privatized the most in Europe, we had thousands of billions from privatizations. What is today in the hands of the government to privatize is not what you can think… or what the government is presenting,” Letta said.

“So it is clear that there is an over-evaluation just for political reasons, just to give the idea that there is room for maneuver but there is not, that’s the truth.”


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: silvia amaro
Keywords: news, cnbc, companies, minister, period, 23, told, fiscal, europe, honeymoon, think, letta, prime, end, rome, months, opposition, european, warns, italy


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Wells Fargo sees stock gains in 2019 despite aging expansion, higher rates

While U.S. stocks should continue to climb in 2019 amid record earnings, the trek to new highs will be marked by turbulence as both fiscal and monetary stimuli recede and economic activity slows, according to Wells Fargo. Critical to the Wells Fargo thesis for continued gains in the stock market is the belief that earnings per share can continue to grind to all-time highs in the year ahead. Forward S&P 500 EPS topped $172 by the end of the third fiscal quarter; Wells Fargo believes that number c


While U.S. stocks should continue to climb in 2019 amid record earnings, the trek to new highs will be marked by turbulence as both fiscal and monetary stimuli recede and economic activity slows, according to Wells Fargo. Critical to the Wells Fargo thesis for continued gains in the stock market is the belief that earnings per share can continue to grind to all-time highs in the year ahead. Forward S&P 500 EPS topped $172 by the end of the third fiscal quarter; Wells Fargo believes that number c
Wells Fargo sees stock gains in 2019 despite aging expansion, higher rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: thomas franck, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, gains, wells, despite, rates, expansion, aging, end, stock, sees, levels, investment, economic, higher, fargo, eps, sp, continue


Wells Fargo sees stock gains in 2019 despite aging expansion, higher rates

While U.S. stocks should continue to climb in 2019 amid record earnings, the trek to new highs will be marked by turbulence as both fiscal and monetary stimuli recede and economic activity slows, according to Wells Fargo.

Global equity strategists Audrey Kaplan and Scott Wren wrote in the Wells Fargo Investment Institute’s annual outlook that the broad S&P 500 index should climb to a range between 2,860 and 2,960 by the end of next year despite greater volatility across riskier securities. The 2019 outlook, published Wednesday, implies about 7 percent upside from current levels around 2,700.

“The end of easy means, in part, that more historically normal volatility has returned to financial markets,” the strategists told clients. “Rising interest rates make credit more expensive and the sudden shift in the geopolitical environment spark surprises.”

“However, we believe that investors should not fear the changing trend, so long as low inflation and solid earnings-per-share growth continue,” he added. “To this point, even if EPS rises more slowly late in the cycle, it can still reach higher levels that, in turn, drive higher equity prices.”

Critical to the Wells Fargo thesis for continued gains in the stock market is the belief that earnings per share can continue to grind to all-time highs in the year ahead. Corporate profits have accelerated to new heights over the past two years as President Donald Trump’s historic tax cuts eased levies on the nation’s largest companies in the hopes of spurring investment and rewarding workers.

Forward S&P 500 EPS topped $172 by the end of the third fiscal quarter; Wells Fargo believes that number could rise to $177 by December 2019.

“Household and business spending should keep profit margins at sustainable levels,” Wren and Kaplan added. “EPS for the large-cap benchmark index, the S&P 500, should have additional support from repatriated overseas profits.”

Earnings will also likely climb thanks to share buybacks, which reduce the number of outstanding shares and, in turn, boost profits per share.

The Investment Institute sees stock gains despite a slowdown in economic activity, with Wells Fargo’s economic team predicting gross domestic product to grow 2.7 percent in 2019. Darrell Cronk, the institute’s president, also warned of the end of outsized job gains as the economy enters its final stages.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: thomas franck, michael nagle, bloomberg, getty images
Keywords: news, cnbc, companies, gains, wells, despite, rates, expansion, aging, end, stock, sees, levels, investment, economic, higher, fargo, eps, sp, continue


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Arizona lettuce growers were ‘sweating bullets’ waiting for romaine E. coli advisory to end

Lettuce growers say they knew immediately that November’s E. coli outbreak linked to romaine lettuce likely originated on California farms, but U.S. health officials issued a blanket warning that no romaine was safe to consume. In an E. coli outbreak linked to romaine in March 2018, health officials limited the advisory to plants grown in Yuma, Arizona. The March outbreak occurred during the transition from Arizona to California, so health officials knew the contaminated plants came from Arizona


Lettuce growers say they knew immediately that November’s E. coli outbreak linked to romaine lettuce likely originated on California farms, but U.S. health officials issued a blanket warning that no romaine was safe to consume. In an E. coli outbreak linked to romaine in March 2018, health officials limited the advisory to plants grown in Yuma, Arizona. The March outbreak occurred during the transition from Arizona to California, so health officials knew the contaminated plants came from Arizona
Arizona lettuce growers were ‘sweating bullets’ waiting for romaine E. coli advisory to end Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: marilyn haigh, lisa romerein, getty images
Keywords: news, cnbc, companies, sweating, bullets, industry, officials, mcguire, health, romaine, outbreak, end, arizona, california, growers, labeling, lettuce, coli, warning, advisory, waiting


Arizona lettuce growers were 'sweating bullets' waiting for romaine E. coli advisory to end

Lettuce growers say they knew immediately that November’s E. coli outbreak linked to romaine lettuce likely originated on California farms, but U.S. health officials issued a blanket warning that no romaine was safe to consume. That warning halted sales of all romaine, prompting the industry to implement temporary labeling requirements that some farmers hope will be permanent.

Through a voluntary market withdrawal, health officials ensured a “clean break” to “purge the market of potentially contaminated” lettuce, according to a Food and Drug Administration press release.

Farmers said this warning differs from previous produce advisories, which they felt have not been as broad. FDA spokesman Peter Cassell said every situation is different, and that the breadth of a warning can vary by commodity, its shelf life and more.

In an E. coli outbreak linked to romaine in March 2018, health officials limited the advisory to plants grown in Yuma, Arizona. That outbreak hit 36 states and resulted in five deaths. Officials could narrow the source to one region thanks to seasonal growing patterns.

When temperatures dip in Northern California in November, lettuce growers move production south to warmer desert regions. Around April, production shifts back to central California. The March outbreak occurred during the transition from Arizona to California, so health officials knew the contaminated plants came from Arizona. An environmental assessment later confirmed the source.

Due to the timing of the November outbreak, produce growers and industry experts knew it most likely started in California. But after the March outbreak, health officials weren’t going to take any chances, said Trevor Suslow, the vice president of food safety for the Produce Marketing Association.

Arizona farmers were “sweating bullets” awaiting the end of the advisory, Suslow said. Growers were concerned they would have to leave fields to rot if the advisory continued. Suslow said due to the timing of the outbreak, health officials acted quickly, with a broad warning, to stop romaine sales completely.

The FDA “learned a lot of lessons from the Yuma outbreak,” Cassell said.

During the March outbreak attributed to farms in Yuma, officials realized consumers couldn’t tell where the romaine in their grocery stores and restaurants salads was grown. Under law, some produce including packaged romaine lettuce must be labeled with the name of the producer or distributor, but that may not be the same region it was grown in.

“We learned from the Yuma outbreak that the advice we gave out to avoid romaine lettuce from Yuma was not easy to follow for consumers,” Cassell said. “The most protective thing was to tell people not to eat romaine lettuce, especially around Thanksgiving.”

Matt McGuire, the general manager for JV Farms, said the March outbreak rocked consumer confidence, which hit the romaine market. He fears the November outbreak will shake consumers again, especially because it was so wide reaching.

“We were just getting consumer confidence back from our own outbreak the previous spring and this wasn’t something the industry needed,” McGuire said. “The industry was already hurt pretty bad in the spring. We had just gotten the romaine market back up to about break even just toward the end of October.”

But the advisory’s impact could have been worse. To take advantage of the strong romaine market and meet holiday demand, growers were harvesting ahead of schedule, a few days before the lettuce was ready to be harvested, McGuire said. That meant few crops went to rot, but if the advisory had lasted a few days longer some romaine might have been too old to harvest.

“People were very nervous when it first hit, and nobody knew how long we were going to be out,” McGuire said. “It’s not as bad as it could have been.”

Health officials narrowed the warning to avoid romaine lettuce grown in six Northern California counties on Nov. 26. Over 64 percent of the 2.15 billion pounds of romaine grown in the U.S. during the 2017 season came from California, according to USDA data.

Just days after the initial warning, officials and industry representatives reached a voluntary agreement to label where the romaine was grown. After the March outbreak, the FDA determined labeling would help consumers better follow its advice, Cassell said.

“Going forward, we’ve established a task force that will look for longer-term solutions for some of these things,” Cassell said.

McGuire estimates the labeling costs between 50 and 60 cents per box of romaine for stickers and labor to apply them. He said the cost is well worth it if it prevents people from getting sick and thinks the industry should have started labeling after the March outbreak.

“In hindsight, some of the stuff that they’re requiring right now maybe should have been done back then,” McGuire said. “Then this recall would have been a lot easier.”

The labeling requirements are a temporary agreement, but McGuire predicts it will become permanent and expand to other produce. He thinks labeling will help consumers trust that their romaine is safe. Time will tell.

WATCH: Here’s who gets rich from school lunch


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: marilyn haigh, lisa romerein, getty images
Keywords: news, cnbc, companies, sweating, bullets, industry, officials, mcguire, health, romaine, outbreak, end, arizona, california, growers, labeling, lettuce, coli, warning, advisory, waiting


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EU’s latest probe into Google won’t conclude this year, antitrust chief says

The European Commission’s latest investigation into Google won’t conclude before the end of the year, the EU’s antitrust chief said Tuesday. Speaking at a press conference at the Slush tech conference in Helsinki, Finland, European Competition Commissioner Margrethe Vestager said the EU’s probe involving Google’s AdSense service would “not be done before New Year’s.” Vestager said last month the investigation was nearing an end which could potentially mean a fine for the search giant. The EU sta


The European Commission’s latest investigation into Google won’t conclude before the end of the year, the EU’s antitrust chief said Tuesday. Speaking at a press conference at the Slush tech conference in Helsinki, Finland, European Competition Commissioner Margrethe Vestager said the EU’s probe involving Google’s AdSense service would “not be done before New Year’s.” Vestager said last month the investigation was nearing an end which could potentially mean a fine for the search giant. The EU sta
EU’s latest probe into Google won’t conclude this year, antitrust chief says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: elizabeth schulze, patricia de melo moreira, afp, getty images, sopa images, contributor
Keywords: news, cnbc, companies, conclude, latest, investigation, end, vestager, search, chief, conference, antitrust, european, wont, service, probe, eus, google, tech


EU's latest probe into Google won't conclude this year, antitrust chief says

The European Commission’s latest investigation into Google won’t conclude before the end of the year, the EU’s antitrust chief said Tuesday.

Speaking at a press conference at the Slush tech conference in Helsinki, Finland, European Competition Commissioner Margrethe Vestager said the EU’s probe involving Google’s AdSense service would “not be done before New Year’s.” Vestager said last month the investigation was nearing an end which could potentially mean a fine for the search giant.

The EU started investigating Google over its Adsense ad service in 2016, accusing the tech giant of hiding advertisements from competitors in its search function. It has denied the charges. It is the third antitrust case the European Commission has brought forward against Google.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: elizabeth schulze, patricia de melo moreira, afp, getty images, sopa images, contributor
Keywords: news, cnbc, companies, conclude, latest, investigation, end, vestager, search, chief, conference, antitrust, european, wont, service, probe, eus, google, tech


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The next date to watch in the US-China trade war is Dec. 18, expert says

The next crucial date to watch for clues on where the trade war is heading may be just around the corner — way before the end of the 90-day period that U.S. President Donald Trump and Chinese President Xi Jinping have agreed on to withhold further tariffs. China marks the 40th anniversary of its economic reforms on Dec. 18, which is an occasion Beijing could use to emphasize its commitment to transform its economy, noted Scott Kennedy, deputy director of the Freeman Chair in China Studies and di


The next crucial date to watch for clues on where the trade war is heading may be just around the corner — way before the end of the 90-day period that U.S. President Donald Trump and Chinese President Xi Jinping have agreed on to withhold further tariffs. China marks the 40th anniversary of its economic reforms on Dec. 18, which is an occasion Beijing could use to emphasize its commitment to transform its economy, noted Scott Kennedy, deputy director of the Freeman Chair in China Studies and di
The next date to watch in the US-China trade war is Dec. 18, expert says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: yen nee lee
Keywords: news, cnbc, companies, watch, expert, trade, date, economy, kennedy, chinese, dec, china, war, fight, end, period, uschina, 18, tariff, director, president


The next date to watch in the US-China trade war is Dec. 18, expert says

The next crucial date to watch for clues on where the trade war is heading may be just around the corner — way before the end of the 90-day period that U.S. President Donald Trump and Chinese President Xi Jinping have agreed on to withhold further tariffs.

China marks the 40th anniversary of its economic reforms on Dec. 18, which is an occasion Beijing could use to emphasize its commitment to transform its economy, noted Scott Kennedy, deputy director of the Freeman Chair in China Studies and director of the Project on Chinese Business and Political Economy at the Center for Strategic and International Studies.

“If that day or week goes by with no major new announcements, then we know that for sure there’s not a possibility that the Chinese want to use this as an opportunity to change the direction of their economy and industrial policies,” Kennedy told CNBC’s “Squawk Box” on Monday.

If that happens, the tariff fight between the U.S. and China will certainly re-escalate at the end of the 90-day period, he added.

Trump over the weekend agreed to not raise tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent in January as he had previous threatened, according to a White House statement. In exchange, the U.S. and China will work toward a deal within 90 days — a timeline that many experts have said is too short given the complicated issues surrounding the tariff fight.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: yen nee lee
Keywords: news, cnbc, companies, watch, expert, trade, date, economy, kennedy, chinese, dec, china, war, fight, end, period, uschina, 18, tariff, director, president


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Euro zone inflation dips as ECB braces to end bond buying

Euro zone inflation slowed as expected in November, while core inflation readings were below market expectations, supporting European Central Bank policymakers who favor a cautious exit from monetary stimulus. Indeed, Eurostat said that energy prices rose by 9.1 percent year-on-year, from 10.7 percent in October, while unprocessed food prices were up 1.8 percent, from a 2.1 percent increase last month. Another core inflation reading often watched by economists, which removes all food, energy, al


Euro zone inflation slowed as expected in November, while core inflation readings were below market expectations, supporting European Central Bank policymakers who favor a cautious exit from monetary stimulus. Indeed, Eurostat said that energy prices rose by 9.1 percent year-on-year, from 10.7 percent in October, while unprocessed food prices were up 1.8 percent, from a 2.1 percent increase last month. Another core inflation reading often watched by economists, which removes all food, energy, al
Euro zone inflation dips as ECB braces to end bond buying Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: aris messinis, afp, getty images
Keywords: news, cnbc, companies, energy, dips, euro, core, end, bond, buying, prices, zone, braces, inflation, policy, yearonyear, bank, ecb


Euro zone inflation dips as ECB braces to end bond buying

Euro zone inflation slowed as expected in November, while core inflation readings were below market expectations, supporting European Central Bank policymakers who favor a cautious exit from monetary stimulus.

Consumer prices in the 19 countries sharing the euro rose by 2.0 percent year-on-year in November after a near six-year high of 2.2 percent in October, EU statistics agency Eurostat said on Friday.

The decline matched the average expectation in a Reuters poll of economists.

Headline inflation has been at or above the ECB’s target of almost 2 percent for months, but the bank has downplayed the risk of an overshoot, arguing that underlying trends remain weak and only volatile energy costs are pushing up consumer prices.

Indeed, Eurostat said that energy prices rose by 9.1 percent year-on-year, from 10.7 percent in October, while unprocessed food prices were up 1.8 percent, from a 2.1 percent increase last month.

Inflation excluding those two volatile components — the core indicator that the ECB watches in its policy decisions — also fell, to 1.1 percent from 1.2 percent in October, against expectations of a slight increase.

Another core inflation reading often watched by economists, which removes all food, energy, alcohol and tobacco prices, also dropped to 1.0 percent. Forecasts were for it to be unchanged at 1.1 percent.

Both indicate that record employment and rising wages have yet to fully feed through to prices.

The ECB still plans to end its 2.6 trillion euro ($2.96 trillion) bond purchase scheme next month, arguing that inflation is now well on its way to the target and the euro zone economy will continue to expand even with reduced support.

But it also expects to maintain an oversized balance sheet for years to come and interest rates at record lows at least through next summer to keep monetary policy highly accommodative for an extended period.

The ECB now expects inflation to average 1.7 percent through 2020 but an oil price drop of more than 30 percent since early October has raised downside risks to its projections.

The bank will next meet on December 13 and investors expect it to reaffirm its policy stance and to detail how it will use cash from maturing bonds to keep borrowing costs low.

Eurostat’s flash estimate does not include a month-on-month calculation.


Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: aris messinis, afp, getty images
Keywords: news, cnbc, companies, energy, dips, euro, core, end, bond, buying, prices, zone, braces, inflation, policy, yearonyear, bank, ecb


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Investors are piling into boring defensive stocks like P&G as 2018 comes to an end

Wall Street is loading up on boring stocks as year-end approaches, a trend that could signal investors are worried the recent market volatility could continue. The S&P 500, meanwhile, lost more than 5 percent of its value in that time. The S&P 500 briefly fell into a correction, dropping more than 10 percent from its all-time high set in September. According to data from The “Stock Trader’s Almanac,” the S&P 500 averages a gain of 1.6 percent in December. LPL Financial’s Detrick also points out


Wall Street is loading up on boring stocks as year-end approaches, a trend that could signal investors are worried the recent market volatility could continue. The S&P 500, meanwhile, lost more than 5 percent of its value in that time. The S&P 500 briefly fell into a correction, dropping more than 10 percent from its all-time high set in September. According to data from The “Stock Trader’s Almanac,” the S&P 500 averages a gain of 1.6 percent in December. LPL Financial’s Detrick also points out
Investors are piling into boring defensive stocks like P&G as 2018 comes to an end Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: fred imbert, mario anzuoni
Keywords: news, cnbc, companies, piling, high, 2018, stocks, boring, utilities, end, sp, volatility, 500, market, staples, comes, defensive, trade, pg, investors


Investors are piling into boring defensive stocks like P&G as 2018 comes to an end

Wall Street is loading up on boring stocks as year-end approaches, a trend that could signal investors are worried the recent market volatility could continue.

Net inflows into exchange-traded funds that track high-dividend, low volatility stocks are above $500 million on an eight-week rolling basis — the first time since 2016 — according to data from Jefferies. High dividend yields and low volatility are key characteristics of stocks in the consumer staples and utilities sectors. Because of their characteristics, these stocks are considered less risky than others.

Staples and utilities have recently outperformed the broader market. The Consumer Staples Select Sector SPDR ETF (XLP) and the Utilities Select Sector SPDR ETF (XLU) are up 5.95 percent and 4.1 percent, respectively, since Oct. 1. The staples ETF was also on pace to post its longest monthly winning streak since 2006. The S&P 500, meanwhile, lost more than 5 percent of its value in that time.

XLP and XLU vs S&P 500 since Oct. 1

Source: FactSet

“This is yet another indication of high risk aversion,” Thomas Thornton, head of U.S. product management at Jefferies, wrote in a note to clients. “Other signs of high risk aversion and poor sentiment are evident by looking at Oct/Nov price action in any broad equity index.”

The broad equity market has been under pressure recently as investors grapple with worries of rising rates as well as fears of a U.S.-China trade war slowing down the global economy. The S&P 500 briefly fell into a correction, dropping more than 10 percent from its all-time high set in September.

“People are a little more defensive,” said Ryan Detrick, senior market strategist at LPL Financial. “With all the uncertainty around trade, people aren’t willing to make big bets right now.”

Shares of staples like Clorox, Mondelez International and Procter & Gamble all rose more than 5 percent this month. Meanwhile, shares of Facebook, Apple, and Netflix are all down sharply this month. The tech stocks are part of the popular “FAANG” trade, which has been responsible for the lion’s share of the market’s gains in recent years.

“It’s a sign investors are getting more defensive, but it would have made more sense to get into these names in the summer when they were beaten down,” said Andrew Slimmon, managing director at Morgan Stanley investment Management.

The broader market cut some of its steep losses this week, with the S&P 500 rallying 4 percent in its best weekly performance since 2011. But the fact that investors are still adding onto their defensive positions hints that Wall Street still fears stocks could retest the lows seen in the correction.

To be sure, stocks are entering a time of the year that is typically strong for them. According to data from The “Stock Trader’s Almanac,” the S&P 500 averages a gain of 1.6 percent in December. LPL Financial’s Detrick also points out that December has never been the worst month of the year for the S&P 500.

“It’s the feel-good time of the year,” Detrick said. “There isn’t that much big news in December and there isn’t a lot of trading. We wouldn’t be surprised if we see a rally into year-end.”


Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: fred imbert, mario anzuoni
Keywords: news, cnbc, companies, piling, high, 2018, stocks, boring, utilities, end, sp, volatility, 500, market, staples, comes, defensive, trade, pg, investors


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Why a critical OPEC meeting may end with confusion and lower oil prices

When OPEC reached a deal with Russia and other producers in 2016 to end a two-year oil price slump, it was a relatively straightforward affair. The alliance announced it was slashing output, each country agreed to a specific production quota and international oil prices rallied about $7 a barrel. Markets responded to OPEC’s ambiguity by pushing oil prices higher, the opposite of what the cartel intended. John Kilduff, founding partner at energy hedge fund Again Capital, says traders may punish o


When OPEC reached a deal with Russia and other producers in 2016 to end a two-year oil price slump, it was a relatively straightforward affair. The alliance announced it was slashing output, each country agreed to a specific production quota and international oil prices rallied about $7 a barrel. Markets responded to OPEC’s ambiguity by pushing oil prices higher, the opposite of what the cartel intended. John Kilduff, founding partner at energy hedge fund Again Capital, says traders may punish o
Why a critical OPEC meeting may end with confusion and lower oil prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: tom dichristopher, leonhard foeger
Keywords: news, cnbc, companies, opec, oil, meeting, lower, confusion, output, prices, end, price, weeks, producers, market, critical, think


Why a critical OPEC meeting may end with confusion and lower oil prices

When OPEC reached a deal with Russia and other producers in 2016 to end a two-year oil price slump, it was a relatively straightforward affair. The alliance announced it was slashing output, each country agreed to a specific production quota and international oil prices rallied about $7 a barrel.

Heading into next week’s OPEC meeting, few analysts anticipate such decisive action or so clear-cut an outcome — even with the oil market near the bottom of the worst price plunge since the 2008 financial crisis.

To be sure, top OPEC producer Saudi Arabia and its Gulf allies are widely expected to orchestrate another output cut when producers meet in Vienna on Thursday. The signals are clear: Forecasters think the oil market will be oversupplied next year, the cost of crude has tumbled more than 30 percent in just eight weeks, and most OPEC members don’t stand a chance of balancing their budgets at current price levels.

But the group is dealing with a very different set of challenges than it faced in 2016, including a U.S. president who is fiercely opposed to price-boosting production cuts. Analysts now expect the meeting to culminate with an official statement that leaves the market scratching its head over just how many barrels OPEC intends to take off the market.

“I do think there will be OPEC math,” said Tamar Essner, director of energy and utilities at Nasdaq Corporate Solutions. “You’ll have to figure out the cuts from baseline levels. I don’t think it will be necessarily all that clear based on the statements.”

That could result in a repeat of OPEC’s June meeting. With oil prices rising rapidly, the group agreed to reverse course and hike output but offered little in the way of a blueprint.

The OPEC alliance agreed two years ago to keep 1.8 million barrels per day off the market, but by this last April, the group’s output had fallen by about 2.7 million bpd. Instead of clearly stating they would correct by restoring about 1 million bpd, producers vowed to return to 100 percent compliance. The group also failed to release revised quotas for each nation.

Markets responded to OPEC’s ambiguity by pushing oil prices higher, the opposite of what the cartel intended.

In the following months, U.S. crude rallied to a nearly four-year high at $76.90 a barrel, driven by fears of oil shortages ahead of U.S. sanctions on Iran. The price has since tumbled 35 percent over the last eight weeks, hitting a 13-month low at $49.41 on Thursday.

John Kilduff, founding partner at energy hedge fund Again Capital, says traders may punish oil prices if the OPEC statement once again disappoints the market.

“If this OPEC meeting falls apart, you could see prices rapidly fall down to potential support down to $42,” he told CNBC’s “Power Lunch” on Thursday. “There is a zone of congestion on the charts … between $45 and $50, so it will be a tough slog, but your downside objective is $42.”


Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: tom dichristopher, leonhard foeger
Keywords: news, cnbc, companies, opec, oil, meeting, lower, confusion, output, prices, end, price, weeks, producers, market, critical, think


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