Silicon Valley is eyeing the giant market for infant formula

Laura Modi, Co-Founder of Bobbie Baby, wants to create a new “European style” infant formula here in the U.S. In Europe, there are different rules around the ingredients that brands are allowed to use in formulas, and some parents believe that European formulas are healthier. So Modi set about forming a start-up that would essentially recreate European formulas for the U.S. market. But after less than 10 days on the market, the U.S. Food and Drug Administration issued a warning in June to consum


Laura Modi, Co-Founder of Bobbie Baby, wants to create a new “European style” infant formula here in the U.S. In Europe, there are different rules around the ingredients that brands are allowed to use in formulas, and some parents believe that European formulas are healthier. So Modi set about forming a start-up that would essentially recreate European formulas for the U.S. market. But after less than 10 days on the market, the U.S. Food and Drug Administration issued a warning in June to consum
Silicon Valley is eyeing the giant market for infant formula Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: christina farr
Keywords: news, cnbc, companies, eyeing, silicon, market, valley, giant, infant, modi, european, working, bobbie, formula, formulas, parents, different


Silicon Valley is eyeing the giant market for infant formula

Laura Modi, Co-Founder of Bobbie Baby, wants to create a new “European style” infant formula here in the U.S.

While working at Airbnb, Laura Modi noticed a strange trend among Bay Area mothers.

Many new parents were circumventing U.S. regulators by importing their formulas from Europe.

In Europe, there are different rules around the ingredients that brands are allowed to use in formulas, and some parents believe that European formulas are healthier.

So Modi set about forming a start-up that would essentially recreate European formulas for the U.S. market. She started a new venture, called Bobbie Baby, alongside her former Airbnb colleague Sarah Hardy, and the pair raised $2.5 million in venture capital funding.

But after less than 10 days on the market, the U.S. Food and Drug Administration issued a warning in June to consumers to stop using Bobbie’s infant formula. Among its various complaints, the U.S. FDA told parents that the formula was manufactured in Germany and imported to the United States, and that there weren’t sufficient nutrients for some infants, especially those born premature or with a low birth weight.

“We were very surprised,” said Modi.

Modi explained that the company faced a number of hurdles in manufacturing its product in America. Modi said there are only a handful of approved facilities to manufacture infant formula, and most require a minimum batch of orders that far exceeds what a start-up can realistically achieve in its first months. Modi considered going down a different route, such as the toddler formula market, but she remains committed to working with regulators to bring Bobbie to market as an approved infant formula.

“Toddler is a totally different category, and our mission is to support the infants and new parents,” she said.


Company: cnbc, Activity: cnbc, Date: 2019-08-02  Authors: christina farr
Keywords: news, cnbc, companies, eyeing, silicon, market, valley, giant, infant, modi, european, working, bobbie, formula, formulas, parents, different


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US, China in-person trade talks expected next week; White House eyeing longer-term timeline for deal

US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He at the Diaoyutai State Guesthouse in Beijing on Feb. 15, 2019American trade negotiators will soon head to China for face-to-face talks as the world’s two largest economies try to strike a deal, sources told CNBC. The U.S. officials will travel to China for discussions sometime between Friday — the start of a six-week congressional recess in Washington — and Thursday, August 1. While the talks represent a critical next step


US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He at the Diaoyutai State Guesthouse in Beijing on Feb. 15, 2019American trade negotiators will soon head to China for face-to-face talks as the world’s two largest economies try to strike a deal, sources told CNBC. The U.S. officials will travel to China for discussions sometime between Friday — the start of a six-week congressional recess in Washington — and Thursday, August 1. While the talks represent a critical next step
US, China in-person trade talks expected next week; White House eyeing longer-term timeline for deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-23  Authors: kayla tausche jacob pramuk, kayla tausche, jacob pramuk
Keywords: news, cnbc, companies, talks, expected, worlds, willing, house, longerterm, trade, eyeing, beijing, china, washington, white, timeline, inperson, exchange, week, officials, deal


US, China in-person trade talks expected next week; White House eyeing longer-term timeline for deal

US Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He at the Diaoyutai State Guesthouse in Beijing on Feb. 15, 2019

American trade negotiators will soon head to China for face-to-face talks as the world’s two largest economies try to strike a deal, sources told CNBC.

The U.S. officials will travel to China for discussions sometime between Friday — the start of a six-week congressional recess in Washington — and Thursday, August 1.

While the talks represent a critical next step after a truce reached between the countries’ leaders in June, a deal is not viewed as near. President Donald Trump has signaled that he’d be willing to relax restrictions on China’s Huawei in exchange for purchases of U.S. agricultural products.

Longer-term, U.S. officials have suggested they could roll back the tariffs in exchange for Beijing making the deal legally binding — something it backtracked on in May.


Company: cnbc, Activity: cnbc, Date: 2019-07-23  Authors: kayla tausche jacob pramuk, kayla tausche, jacob pramuk
Keywords: news, cnbc, companies, talks, expected, worlds, willing, house, longerterm, trade, eyeing, beijing, china, washington, white, timeline, inperson, exchange, week, officials, deal


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Apple drops on report that Justice Department is eyeing antitrust probe

Apple shares ticked lower Monday after a Reuters report saying the Justice Department is considering a probe of the iPhone maker. The stock fell nearly 2% following the report, after trading higher earlier in the day. Apple and its CEO, Tim Cook, presented updates to the company’s central software at its annual Worldwide Developers Conference on Monday. The tech-heavy Nasdaq Composite index also fell 1% Monday after similar regulatory headlines dinged tech giants Alphabet, Amazon and Facebook. A


Apple shares ticked lower Monday after a Reuters report saying the Justice Department is considering a probe of the iPhone maker. The stock fell nearly 2% following the report, after trading higher earlier in the day. Apple and its CEO, Tim Cook, presented updates to the company’s central software at its annual Worldwide Developers Conference on Monday. The tech-heavy Nasdaq Composite index also fell 1% Monday after similar regulatory headlines dinged tech giants Alphabet, Amazon and Facebook. A
Apple drops on report that Justice Department is eyeing antitrust probe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-03  Authors: sara salinas
Keywords: news, cnbc, companies, scrutiny, justice, drops, probe, tech, department, spotify, regulators, antitrust, stock, apple, reported, eyeing, report, shares


Apple drops on report that Justice Department is eyeing antitrust probe

Apple shares ticked lower Monday after a Reuters report saying the Justice Department is considering a probe of the iPhone maker.

The agency has been given jurisdiction to probe the company’s practices as part of a broad review into potential anti-competitive behavior among big tech companies, Reuters reported, citing two sources.

The stock fell nearly 2% following the report, after trading higher earlier in the day. The shares pared losses to end the session 1% down. Apple and its CEO, Tim Cook, presented updates to the company’s central software at its annual Worldwide Developers Conference on Monday.

The tech-heavy Nasdaq Composite index also fell 1% Monday after similar regulatory headlines dinged tech giants Alphabet, Amazon and Facebook.

Earlier Monday, the Wall Street Journal reported that the Federal Trade Commission will examine how Facebook’s practices affect digital competition. The Washington Post reported over the weekend that Amazon has come under heightened scrutiny by U.S. regulators. And on Friday, the Journal reported that the DOJ is preparing a probe of Google, sending shares of parent company Alphabet down more than 7% at one point Monday, before they regained some ground and ended with a drop of 6.1%

The possible Apple investigation is linked to the Google probe, Reuters reported, and stems from meetings between the DOJ and the FTC.

The headlines together paint a daunting picture for Silicon Valley and the stock market’s most valuable companies. Big tech has long faced scrutiny from European regulators, but has so far shrugged off calls for government regulation in the U.S.

Apple has drawn increased criticism in recent months for what some — including streaming giant Spotify — see as anti-competitive behavior in the App Store. Apple owns and operates the online marketplace, collecting subscription fees from developers.

The so-called Apple tax accounts for a sizable percentage of Apple’s burgeoning services revenue segment, but draws the ire of developers who, in some cases, compete with Apple’s own apps in the store.

Spotify’s EU complaint against Apple, filed in March, is pending investigation by European authorities. Apple has said Spotify wants to enjoy the benefits of a free app, without it being free, according to a separate Reuters story on Monday.


Company: cnbc, Activity: cnbc, Date: 2019-06-03  Authors: sara salinas
Keywords: news, cnbc, companies, scrutiny, justice, drops, probe, tech, department, spotify, regulators, antitrust, stock, apple, reported, eyeing, report, shares


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Alibaba is reportedly eyeing a Hong Kong listing to raise $20 billion

The New York Stock Exchange building is seen adorned with banners on September 19, 2014. A buying frenzy sent Alibaba shares sharply higher Friday as the Chinese online giant made its historic Wall Street trading debut. In early trades after the record public share offering, Alibaba leapt from an opening price of $68 to nearly $100 and, while it dropped back, was still up some 38 percent at $94.08 after 10 minutes. AFP PHOTO/Jewel Samad (Photo credit should read JEWEL SAMAD/AFP/Getty Images)JEWE


The New York Stock Exchange building is seen adorned with banners on September 19, 2014. A buying frenzy sent Alibaba shares sharply higher Friday as the Chinese online giant made its historic Wall Street trading debut. In early trades after the record public share offering, Alibaba leapt from an opening price of $68 to nearly $100 and, while it dropped back, was still up some 38 percent at $94.08 after 10 minutes. AFP PHOTO/Jewel Samad (Photo credit should read JEWEL SAMAD/AFP/Getty Images)JEWE
Alibaba is reportedly eyeing a Hong Kong listing to raise $20 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-27  Authors: thomas franck
Keywords: news, cnbc, companies, sharply, billion, street, wall, alibaba, samad, stock, 20, york, kong, listing, reportedly, eyeing, hong, trades, trading, raise, afp


Alibaba is reportedly eyeing a Hong Kong listing to raise $20 billion

The New York Stock Exchange building is seen adorned with banners on September 19, 2014. A buying frenzy sent Alibaba shares sharply higher Friday as the Chinese online giant made its historic Wall Street trading debut. In early trades after the record public share offering, Alibaba leapt from an opening price of $68 to nearly $100 and, while it dropped back, was still up some 38 percent at $94.08 after 10 minutes. AFP PHOTO/Jewel Samad (Photo credit should read JEWEL SAMAD/AFP/Getty Images)

JEWEL SAMAD | AFP | Getty Images


Company: cnbc, Activity: cnbc, Date: 2019-05-27  Authors: thomas franck
Keywords: news, cnbc, companies, sharply, billion, street, wall, alibaba, samad, stock, 20, york, kong, listing, reportedly, eyeing, hong, trades, trading, raise, afp


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China eyeing Trump’s late May Japan trip for potential Xi summit

One trip in particular that’s risen to the top of the list: Trump’s expected visit to Japan at the end of May, putting him in the Asia-Pacific region around the time negotiations are expected to conclude. An administration official acknowledged holding the summit in Asia is China’s preference, though it remains unclear where the final location will be. Trump has said the summit could happen on either continent and that he expects a resolution by the end of May. The two sides have been discussing


One trip in particular that’s risen to the top of the list: Trump’s expected visit to Japan at the end of May, putting him in the Asia-Pacific region around the time negotiations are expected to conclude. An administration official acknowledged holding the summit in Asia is China’s preference, though it remains unclear where the final location will be. Trump has said the summit could happen on either continent and that he expects a resolution by the end of May. The two sides have been discussing
China eyeing Trump’s late May Japan trip for potential Xi summit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: kayla tausche
Keywords: news, cnbc, companies, president, trump, potential, negotiations, xi, china, visit, trip, late, end, trumps, japan, eyeing, summit


China eyeing Trump's late May Japan trip for potential Xi summit

As the U.S. and China work through the final stages of trade negotiations, Chinese officials are identifying international travel dates on President Donald Trump’s calendar that might offer potential for a summit off of U.S. soil, according to three sources briefed on negotiations.

One trip in particular that’s risen to the top of the list: Trump’s expected visit to Japan at the end of May, putting him in the Asia-Pacific region around the time negotiations are expected to conclude.

Neither the White House nor the Embassy of Japan would confirm the trip, in which Trump would be the first foreign leader received by Crown Prince Naruhito after he accedes to the throne on May 1.

But the three sources briefed on the negotiations, requesting anonymity to protect their relationships with the Trump administration, said it’s one option being considered. An administration official acknowledged holding the summit in Asia is China’s preference, though it remains unclear where the final location will be. Trump has said the summit could happen on either continent and that he expects a resolution by the end of May.

“I would say we’ll know over the next four weeks,” Trump told reporters gathered in the Oval Office on April 5 for an event with the Chinese vice premier. “It may take two weeks after that to get it papered, but over the next fairly short period of time, we’re going to know.”

While that timeline would put the target end date right around Trump’s trip to Japan, Treasury Secretary Steven Mnuchin said talks would not be bound by an “arbitrary timeline,” and the South China Morning Post threw cold water on a deal being done by then.

Erin Ennis, senior vice president at the US-China Business Council, suggested a later June meeting – perhaps on the sidelines of the G20 at the end of the month – would be more feasible.

“It seems like both sides want to have the deal completed first before they’re willing to discuss when and where a summit would happen,” Ennis told CNBC.

In late January, China initially invited Pres. Trump to meet Pres. Xi on the island of Hainan in the South China Sea. The White House countered with Mar-a-Lago, one venue that still remains under consideration. But China has also suggested that if its president were to travel to the U.S. solely to announce a trade agreement, it would need to be in the form of an official state visit. The two sides have been discussing a potential state visit by Xi since 2018.

The May 26-28 trip was previously reported by the Japan Times.


Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: kayla tausche
Keywords: news, cnbc, companies, president, trump, potential, negotiations, xi, china, visit, trip, late, end, trumps, japan, eyeing, summit


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Supreme Court lets fines resume for firm Mueller may be eyeing

The Supreme Court on Tuesday allowed hefty contempt fines to resume against a mysterious foreign-owned company that is locked in a battle over evidence with federal prosecutors believed to be working for special counsel Robert Mueller. Separately, the company has asked the Supreme Court for permission to file an application for the high court to hear its challenge to the subpoena. The company then appealed her decision to the federal appeals court in Washington. The same prosecutors were spotted


The Supreme Court on Tuesday allowed hefty contempt fines to resume against a mysterious foreign-owned company that is locked in a battle over evidence with federal prosecutors believed to be working for special counsel Robert Mueller. Separately, the company has asked the Supreme Court for permission to file an application for the high court to hear its challenge to the subpoena. The company then appealed her decision to the federal appeals court in Washington. The same prosecutors were spotted
Supreme Court lets fines resume for firm Mueller may be eyeing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-08  Authors: dan mangan, tucker higgins, janhvi bhojwani
Keywords: news, cnbc, companies, company, appeals, request, resume, fines, supreme, court, subpoena, issued, firm, mueller, eyeing, stay, lets


Supreme Court lets fines resume for firm Mueller may be eyeing

The Supreme Court on Tuesday allowed hefty contempt fines to resume against a mysterious foreign-owned company that is locked in a battle over evidence with federal prosecutors believed to be working for special counsel Robert Mueller.

But the unidentified firm is continuing its broader fight to avoid having to comply with a subpoena issued by a grand jury suspected of working in conjunction with Mueller’s ongoing probes.

Now it will face a daily fine of $50,000 as that fight continues, the D.C. Circuit revealed in an opinion published later Tuesday.

Last month, in response to a request by the company, Chief Justice John Roberts issued a stay on the fines the firm faced for not complying with that subpoena.

On Tuesday, in a filing that did not note a dissent from any justice, the Supreme Court effectively lifted Roberts’ stay of the fines, which he had imposed over the holidays until the full court could review the matter. Tuesday’s order suggests at least five justices opposed a stay.

Separately, the company has asked the Supreme Court for permission to file an application for the high court to hear its challenge to the subpoena. The court has yet to rule on that request, and may not anytime soon, according to legal experts.

“The reality is that the court declining to issue a stay suggests to me that they are not going to be in any hurry to expedite the petition,” said Steve Vladeck, a national security lawyer and professor at the University of Texas School of Law.

The company in August filed a legal action seeking to quash the subpoena, which was issued by a grand jury sitting in U.S. District Court in Washington, D.C. That lawsuit is sealed from public view.

Judge Beryl Howell rejected the request and imposed escalating fines after finding that the company was in contempt for refusing to comply with the subpoena, court records show.

The company then appealed her decision to the federal appeals court in Washington.

The company, according to court records, argued it was immune from the subpoena under the Foreign Sovereign Immunities Act. The firm also argued that the subpoena was “unreasonable and oppressive” under federal criminal procedure rules because it would require the company to violate the law of the country that owns it.

The suspicion that the subpoena was issued by a grand jury working with Mueller stems from the fact that a Politico reporter overheard a man in October ask an appeals court clerk asked for a copy of “the special counsel’s latest sealed filing so that the man’s law firm could craft its response,” Politico has reported. That request came on the same day that a filing in the subpoena-related appeals case was due.

“Three hours later, a sealed response in the grand-jury dispute was submitted to the D.C. Circuit,” Politico reported.

Mueller is investigating Russian interference in the 2016 presidential election, possible collusion in that meddling by members of Donald Trump’s campaign and possible obstruction of justice by President Trump himself. Trump has denied any wrongdoing.

CNN reported that its reporters in September saw several prosecutors from Mueller’s office enter Howell’s courtroom shortly after she issued a ruling upholding the subpoena. The same prosecutors were spotted entering Howell’s court Oct. 5, after the appeals court referred the case back to her for a hearing.

On Dec. 14, the appeals court heard arguments over the company’s request to quash the subpoena, without the public being allowed to attend the hearing. Before arguments began, the entire floor containing the courtroom was closed to the public.

On Dec. 18, a three-judge appeals panel rejected each of the claims raised by the company. Four days later, the company asked the Supreme Court to stay the contempt fines.

Experts say that Tuesday’s order refusing to stay the fines, will not end the matter. But it is a setback for the company, particularly given the absence of any noted dissents in the order.

“If I am their lawyers, I am not optimistic, given that there were no recorded dissents,” Vladeck said. “So I think that the question is whether the mystery corporation is willing to keep paying the contempt fine while it presses the court to take the question on the merits.”


Company: cnbc, Activity: cnbc, Date: 2019-01-08  Authors: dan mangan, tucker higgins, janhvi bhojwani
Keywords: news, cnbc, companies, company, appeals, request, resume, fines, supreme, court, subpoena, issued, firm, mueller, eyeing, stay, lets


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Apple is reportedly eyeing the ad business, despite past stance that targeted ads are ‘creepy’

Apple is reportedly looking at cashing in on mobile advertising, The Wall Street Journal reported on Friday, a move that would mark a departure from recent statements by CEO Tim Cook. The Journal, citing anonymous sources, reported that Apple has met with ad-based companies like Pinterest and Snap. The report said a proposed “Apple network” would “distribute ads across their collective apps,” and Apple would share revenue with the apps displaying the ads, “with the split varying from app to app.


Apple is reportedly looking at cashing in on mobile advertising, The Wall Street Journal reported on Friday, a move that would mark a departure from recent statements by CEO Tim Cook. The Journal, citing anonymous sources, reported that Apple has met with ad-based companies like Pinterest and Snap. The report said a proposed “Apple network” would “distribute ads across their collective apps,” and Apple would share revenue with the apps displaying the ads, “with the split varying from app to app.
Apple is reportedly eyeing the ad business, despite past stance that targeted ads are ‘creepy’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-06-01  Authors: anita balakrishnan, adam jeffery, vcg, getty images
Keywords: news, cnbc, companies, apple, user, stance, reportedly, ads, apps, despite, reported, app, business, targeted, past, journal, wall, varying, pinterest, creepy, eyeing


Apple is reportedly eyeing the ad business, despite past stance that targeted ads are 'creepy'

Apple is reportedly looking at cashing in on mobile advertising, The Wall Street Journal reported on Friday, a move that would mark a departure from recent statements by CEO Tim Cook.

The Journal, citing anonymous sources, reported that Apple has met with ad-based companies like Pinterest and Snap. The report said a proposed “Apple network” would “distribute ads across their collective apps,” and Apple would share revenue with the apps displaying the ads, “with the split varying from app to app.”

For example, the Journal posited, a user searching for curtains on Pinterest might get an advertisement for an interior design app.


Company: cnbc, Activity: cnbc, Date: 2018-06-01  Authors: anita balakrishnan, adam jeffery, vcg, getty images
Keywords: news, cnbc, companies, apple, user, stance, reportedly, ads, apps, despite, reported, app, business, targeted, past, journal, wall, varying, pinterest, creepy, eyeing


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Markets eyeing bond yields, now that stock market appears to have found a bottom

The stock market meltdown also made for a rush into bonds as a safe haven play. Ed Keon, portfolio manager at QMA, said he saw signs of a bottom forming in the stock market early Tuesday. If you look across asset classes, like we do, the bond market was not showing any signs of distress whatsoever,” said Keon. Keon said the markets are adjusting fairly smoothly despite the stock market sell-off. Just as we saw some real volatility return to the stock market, it’s possible that could happen in th


The stock market meltdown also made for a rush into bonds as a safe haven play. Ed Keon, portfolio manager at QMA, said he saw signs of a bottom forming in the stock market early Tuesday. If you look across asset classes, like we do, the bond market was not showing any signs of distress whatsoever,” said Keon. Keon said the markets are adjusting fairly smoothly despite the stock market sell-off. Just as we saw some real volatility return to the stock market, it’s possible that could happen in th
Markets eyeing bond yields, now that stock market appears to have found a bottom Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-02-06  Authors: patti domm, spencer platt, getty images news, getty images
Keywords: news, games, cnbc, companies, 10year, market, bond, markets, yields, fed, volatility, rates, eyeing, selloff, stock, think, appears


Markets eyeing bond yields, now that stock market appears to have found a bottom

Stocks and bonds appear to have called a temporary truce after wild volatility shook both markets.

Some stock traders say it appears equities may have set a bottom after a dramatic, multiday sell-off that seemed to start with stock investors becoming fearful of rising bond yields last week.

In the middle of it all, a crack in some funds that shorted volatility created even more uncertainty in both markets, sending buyers into bonds and sellers into stocks Monday. The stock market meltdown also made for a rush into bonds as a safe haven play. But by Tuesday, bonds were selling off, and stocks, after a series of wide swings, recovered some lost ground and steadied at higher levels.

Ed Keon, portfolio manager at QMA, said he saw signs of a bottom forming in the stock market early Tuesday. By the closing bell, the Dow had moved in an 1,100 point range to close up 567 points, at 24,912.77. The S&P 500 recovered ground after a key technical test of its 100-day moving average to finish at 2,695.14, a gain of 1.74 percent.

“Bottoming is a process. It doesn’t usually happen in one day, but we’ll see. It wouldn’t surprise me to see at one point a challenge maybe to the low from early this morning. Under these circumstances, everybody becomes a technician. I think, and I think it’s a consensus view, the overall fundamentals of the stock market are pretty good at these levels. If you look across asset classes, like we do, the bond market was not showing any signs of distress whatsoever,” said Keon.

Scott Redler, partner with T3Live.com, said it looks like the S&P 500 could see a higher open Wednesday after the “turnaround Tuesday” he was expecting. “I think the bounce could go back to test the 50-day moving average,” he said. On the S&P 500, that was 2,715. “You would think a pause would be likely. I would think that’s a good spot where the market could see some resistance. You’ll probably have to do some backing and filling before you see what’s next.”

The tensions between bonds and stocks could come to the surface again Wednesday, if interest rates rise into a key 10-year Treasury auction Wednesday afternoon. The 10-year yield was at 2.79 percent late Tuesday, after having slipped all the way to 2.64 percent overnight.

“I think we’ve had enough of a sell-off and a sell-off on the curve,” said Aaron Kohli, director of fixed-income strategy at BMO Capital Markets. “I think yields should stay here for a while and maybe even head lower.”

In the rout, as bond yields came off their highs, expectations for Fed rate hikes also decreased. Last week, the market was debating whether there were more hikes than the three the Fed forecast for this year. This week, the market gave lower odds to even the third rate hike.

Higher rates should be the result of better growth, but the stock market was spooked that inflation would start to rise quickly and the Fed would come on too strong, hurting the recovery. The market debate about rate hikes was waged last week as yields in the Treasury market rose to a high of 2.88 percent on the 10-year, making borrowing more costly for everyone from small businesses to mortgage borrowers.

Kohli said the growth outlook is too positive and data doesn’t support much lower rates. The bond market is now seeking more guidance.

“The message that really matters is the one from [Fed Chair Jerome] Powell and that hasn’t really been delivered. We’re waiting on that to make a more decisive case,” said Kohli. “I think the key case for Powell is how he addresses the market volatility. … If you view volatility as an asset class, so far the Fed has been willing to suppress it, and the real question is, is that going to continue?”

Powell took over as chair Monday, during the thick of the market sell-off. He speaks publicly before Congress on Feb. 28 when he delivers testimony on the economy. The market has been awaiting the Fed’s March meeting, where the Fed is expected to raise rates and issue new forecasts and Powell will brief the media.

Markets have been wondering if Powell, whose approach is believed to be similar to that of former Fed Chair Janet Yellen, will be soothing to markets and hold off on rate hikes if volatility is high.

Kohli said the market has to readjust to a world with volatility. He said the losses in short volatility funds sent buyers into bonds. “We went all the way down to 2.65 percent [on the 10-year]” on worries about the VelocityShares Daily Inverse VIX Short-Term ETNs. Credit Suisse said Tuesday it would close the fund.

Peter Boockvar, chief investment strategist at Bleakley Financial Group, said stocks got oversold and bounced back even with interest rates rising back to levels that unsettled the market last week.

“I think as the day went on, once you got to 2:30 or 3 p.m., and the VIX was down, people just took comfort in that maybe some of this earthquake is stopping for now,” he said. “When the 10-year broke above 2.70 last week, the selling started … that was the genesis of the sell-off. It just manifested itself in a major VIX unwind.” The 10-year yield is right back to 2.79 percent, he added.

“Buying on the dip doesn’t really die easily. It’s paid to buy on the dip every single time over the last seven years,” he said. But he warned things could still be very rocky for stocks.

“This is the beginning of a higher volatility regime, not the end, in my opinion. … driven by a rise in interest rates and a pickup in central bank tightening,” he said.

The markets became more focused on rising rates this year as other global central banks slowed or signaled they’d be willing to slow some of their easy monetary policy. The European Central Bank, for instance, cut its quantitative easing bond purchases in half Jan. 1, as the Fed also reduces its bond purchases.

Keon said he expects the 10-year Treasury yield to head higher. “If you think the market is going to rally, you expect bond yields would go back up again. I would not be surprised to see bond yields go to 3 percent in the first half of the year,” he said. Keon said the markets are adjusting fairly smoothly despite the stock market sell-off. “It’s happening very slowly and smoothly so far. Just as we saw some real volatility return to the stock market, it’s possible that could happen in the bond market too.”

Markets will be watching the $24 billion 10-year note auction at 1 p.m. Wednesday, and there are a few Fed speakers throughout the day.

Traders will be watching for comments on inflation or on the market sell-off.

Fed speakers include Dallas Fed President Robert Kaplan at 6 a.m. ET, New York Fed President William Dudley at 8:30 a.m. ET, and Chicago Fed President Charles Evans at 11:15 a.m. San Francisco Fed President John Williams speaks at a luncheon in Hawaii.

Correction: This article has been updated to reflect the levels at which the Dow and the S&P closed on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-02-06  Authors: patti domm, spencer platt, getty images news, getty images
Keywords: news, games, cnbc, companies, 10year, market, bond, markets, yields, fed, volatility, rates, eyeing, selloff, stock, think, appears


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Traders nervously eyeing retail investors for next shoe to drop

Look at the S&P 500. 2,717 was the 50-day moving average for the S&P 500; selling again picked up as we passed below that level about 2:23 PM ET. The Volume Weighted Average Price (VWAP)–the average price for the S&P 500 this year–is now roughly 2,787. How will the average retail investor react when he discovers that he is now underwater by about two percent, after buying the unstoppable S&P 500 just a month ago? No one knows, but traders are now nervously eyeing ETF volumes which will be out


Look at the S&P 500. 2,717 was the 50-day moving average for the S&P 500; selling again picked up as we passed below that level about 2:23 PM ET. The Volume Weighted Average Price (VWAP)–the average price for the S&P 500 this year–is now roughly 2,787. How will the average retail investor react when he discovers that he is now underwater by about two percent, after buying the unstoppable S&P 500 just a month ago? No one knows, but traders are now nervously eyeing ETF volumes which will be out
Traders nervously eyeing retail investors for next shoe to drop Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-02-05  Authors: bob pisani, tyler olson, hemera, getty images
Keywords: news, games, cnbc, companies, shoe, traders, volume, selling, buyers, money, sellers, eyeing, investors, stocks, average, retail, sp, nervously, 500, drop


Traders nervously eyeing retail investors for next shoe to drop

If you’re looking for a bottom, Monday isn’t the day for it.

It’s was a confusing day, with stocks trying to rally and then failing. What’s going on? When markets move this fast, stick to the fundamentals. Watch volume and prices, and it will tell you about where the buyers and the sellers are.

Look at the S&P 500. The low point was initially right at the open, with the S&P at 2736. The rally that followed in the following hour, which took the S&P 500 up more than 25 points, was accompanied by weak volume, meaning buyers were not particularly enthusiastic.

When the S&P drifted below the early morning low of 2736 around 12:20 ET, volume picked up, but selling pressure again abated and we started drifting higher. But once again the volume on the up move was much lighter than the volume on the down move, and buyers again ran out of steam.

When the S&P again drifted below the 12:20 low (2734), the volume accelerated to the downside.

What does this tell us? We know that the volume as the market was rising was not as great as the volume when the market was dropping. For most of the day, more volume has been going to stocks that were declining than to stocks that were advancing.

The conclusion: sellers are not yet exhausted, and buyers are not yet enthusiastic about the lower prices.

As we continue to drop, we start to hit important technical levels. 2,717 was the 50-day moving average for the S&P 500; selling again picked up as we passed below that level about 2:23 PM ET.

The concern now is that the character of the sellers might change. Up until now, the consensus is that this selling is professionally driven. The worry now is that selling could extend beyond professionals, to the retail trader.

Remember, an historic ocean of money came into ETFs in January–north of $55 billion into stocks, according to ETF.com. Much of that were retail investors eagerly putting money to work on the back of strong earnings and an expanding global economy.

The Volume Weighted Average Price (VWAP)–the average price for the S&P 500 this year–is now roughly 2,787. We are 50 points below that. That means that on average anyone who bought this year is slightly under water.

How will the average retail investor react when he discovers that he is now underwater by about two percent, after buying the unstoppable S&P 500 just a month ago?

No one knows, but traders are now nervously eyeing ETF volumes which will be out Thursday night and Friday morning. After historic record inflows in January, will the retail investor stay put after pouring money into the market in the beginning of the year?


Company: cnbc, Activity: cnbc, Date: 2018-02-05  Authors: bob pisani, tyler olson, hemera, getty images
Keywords: news, games, cnbc, companies, shoe, traders, volume, selling, buyers, money, sellers, eyeing, investors, stocks, average, retail, sp, nervously, 500, drop


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Chinese smartphone maker Xiaomi is eyeing a $50 billion IPO: Report

Chinese smartphone maker Xiaomi is eyeing a $50 billion IPO as early as next year, according to a report from Bloomberg. The Beijing-based company has picked up momentum to challenge phone competitor Huawei in its home market, selling 21 million units in the second quarter of 2017. partnership with internet search giant Baidu and rivaling Amazon’s Echo with an in-home smart speaker. In 2014 Xiaomi was valued at $46 billion, which at the time made it the most valuable start-up in the world. The c


Chinese smartphone maker Xiaomi is eyeing a $50 billion IPO as early as next year, according to a report from Bloomberg. The Beijing-based company has picked up momentum to challenge phone competitor Huawei in its home market, selling 21 million units in the second quarter of 2017. partnership with internet search giant Baidu and rivaling Amazon’s Echo with an in-home smart speaker. In 2014 Xiaomi was valued at $46 billion, which at the time made it the most valuable start-up in the world. The c
Chinese smartphone maker Xiaomi is eyeing a $50 billion IPO: Report Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-12-04  Authors: sara salinas, chinafotopress, getty images
Keywords: news, games, cnbc, companies, worldthe, report, eyeing, 50, smartphone, billion, units, valuable, chinese, xiaomi, valued, startup, maker, company, ipo


Chinese smartphone maker Xiaomi is eyeing a $50 billion IPO: Report

Chinese smartphone maker Xiaomi is eyeing a $50 billion IPO as early as next year, according to a report from Bloomberg.

The Beijing-based company has picked up momentum to challenge phone competitor Huawei in its home market, selling 21 million units in the second quarter of 2017.

It’s recently expanded beyond handsets, announcing an A.I. partnership with internet search giant Baidu and rivaling Amazon’s Echo with an in-home smart speaker. In 2014 Xiaomi was valued at $46 billion, which at the time made it the most valuable start-up in the world.

The company is considering a Hong Kong IPO for next year, The Information first reported, citing sources familiar with the company.

Read the full Bloomberg report here.


Company: cnbc, Activity: cnbc, Date: 2017-12-04  Authors: sara salinas, chinafotopress, getty images
Keywords: news, games, cnbc, companies, worldthe, report, eyeing, 50, smartphone, billion, units, valuable, chinese, xiaomi, valued, startup, maker, company, ipo


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