Treasury yields fall as Chinese data disappoints; traders look ahead to Fed meeting

U.S. government debt prices rose on Friday as traders digested fresh economic data out of China and looked ahead to next week’s Federal Reserve meeting. The yield on the benchmark 10-year Treasury note fell steeply to 2.875 percent, while the yield on the 30-year Treasury bond dropped to 3.136 percent. Bond yields move inversely to prices. Investors turned their attention to worse-than-expected Chinese data. News of the disappointing figures comes as China and the U.S. try to negotiate a trade d


U.S. government debt prices rose on Friday as traders digested fresh economic data out of China and looked ahead to next week’s Federal Reserve meeting. The yield on the benchmark 10-year Treasury note fell steeply to 2.875 percent, while the yield on the 30-year Treasury bond dropped to 3.136 percent. Bond yields move inversely to prices. Investors turned their attention to worse-than-expected Chinese data. News of the disappointing figures comes as China and the U.S. try to negotiate a trade d
Treasury yields fall as Chinese data disappoints; traders look ahead to Fed meeting Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: ryan browne, bryan r smith, afp, getty images
Keywords: news, cnbc, companies, treasury, chinese, look, data, fall, worsethanexpected, yields, meeting, traders, rose, bond, widen, disappoints, fed, yield, china, trade


Treasury yields fall as Chinese data disappoints; traders look ahead to Fed meeting

U.S. government debt prices rose on Friday as traders digested fresh economic data out of China and looked ahead to next week’s Federal Reserve meeting.

The yield on the benchmark 10-year Treasury note fell steeply to 2.875 percent, while the yield on the 30-year Treasury bond dropped to 3.136 percent. Bond yields move inversely to prices.

Investors turned their attention to worse-than-expected Chinese data. The country’s industrial output in November grew 5.4 percent from the previous year, less than the 5.9 percent estimated by Reuters; retail sales, meanwhile, rose 8.1 percent last month, falling short of an expected 8.8 percent.

News of the disappointing figures comes as China and the U.S. try to negotiate a trade deal within a 90-day tariffs truce. Positive headlines around trade relations between the two had buoyed market sentiment earlier this week.

President Donald Trump said discussions with Beijing had been “very productive” and that some “important announcements” were forthcoming, while a Wall Street Journal report said China was preparing to widen foreign access to its economy.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: ryan browne, bryan r smith, afp, getty images
Keywords: news, cnbc, companies, treasury, chinese, look, data, fall, worsethanexpected, yields, meeting, traders, rose, bond, widen, disappoints, fed, yield, china, trade


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Goldman downgrades Walgreens’ stock to rare ‘sell,’ shares fall

Goldman Sachs downgraded shares of Walgreens to a rare “sell” rating Friday, doubting that the pharmacy chain’s plans to transform its drugstore business will work. Sells are still somewhat rare on Wall Street. Skepticism about Walgreens’ business has intensified this year. Walgreens has discussed a possible deal with Humana, the “Wall Street Journal” reported last month, citing people familiar with the matter. However, Jones worries Walgreens’ current leverage and debt levels could limit the si


Goldman Sachs downgraded shares of Walgreens to a rare “sell” rating Friday, doubting that the pharmacy chain’s plans to transform its drugstore business will work. Sells are still somewhat rare on Wall Street. Skepticism about Walgreens’ business has intensified this year. Walgreens has discussed a possible deal with Humana, the “Wall Street Journal” reported last month, citing people familiar with the matter. However, Jones worries Walgreens’ current leverage and debt levels could limit the si
Goldman downgrades Walgreens’ stock to rare ‘sell,’ shares fall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: angelica lavito, christopher lee, bloomberg, getty images
Keywords: news, cnbc, companies, stock, business, sent, street, health, fall, goldman, downgrades, jones, shares, wall, pharmacy, drugstore, rare, sell, walgreens


Goldman downgrades Walgreens' stock to rare 'sell,' shares fall

Goldman Sachs downgraded shares of Walgreens to a rare “sell” rating Friday, doubting that the pharmacy chain’s plans to transform its drugstore business will work.

Shares of Walgreens fell by about 4 percent in morning trading Friday. They’re up by about 9 percent this year.

The drugstore chain has struck numerous partnerships, including with health insurer Humana, diagnostics company LabCorp, grocery chain Kroger, package delivery company FedEx and telecom giant Sprint. These are all aimed at boosting traffic to Walgreens’ drugstores, which have watched visits decline as people shop online more.

Goldman analyst Robert Jones said he doesn’t think these partnerships, even if expanded, will help enough to offset declines in Walgreens’ core retail pharmacy business, according to a research note sent to clients Friday. Jones downgraded Walgreens to “sell” from “hold” Friday.

Sells are still somewhat rare on Wall Street. Jones is the only analyst with a sell rating on Walgreens, which has three buys and eight holds, according to TipRanks.

Skepticism about Walgreens’ business has intensified this year. Rival drugstore CVS Health completed its $70 billion acquisition of health insurer Aetna. Amazon entered the prescription drug delivery business this summer when it bought online pharmacy PillPack, spooking investors who sent drugstore stocks tumbling.

Walgreens has discussed a possible deal with Humana, the “Wall Street Journal” reported last month, citing people familiar with the matter. However, Jones worries Walgreens’ current leverage and debt levels could limit the size of a deal Walgreens could make.

Meanwhile, leaders from both political parties, including President Donald Trump, have vowed to lower prescription drug prices. Jones estimates brand inflation could equal half the rate of 2018, which would spell trouble for retailers who he says could face increased reimbursement pressure.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: angelica lavito, christopher lee, bloomberg, getty images
Keywords: news, cnbc, companies, stock, business, sent, street, health, fall, goldman, downgrades, jones, shares, wall, pharmacy, drugstore, rare, sell, walgreens


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European markets fall amid global growth worries; sterling slips to 18-month low amid Brexit vote chaos

The pan-European Stoxx 600 was down around 0.6 percent during early afternoon deals, with almost all sectors and major bourses in negative territory. Britain’s FTSE 100 index led the gains, shortly after reports emerged suggesting a crucial Brexit vote could be pulled. Europe’s chemicals stocks led the losses Monday afternoon, down over 1.5 percent. Autos stock — seen as a trade war proxy because of its export-heavy constituents — were also trading more than 1.5 percent lower amid elevated trade


The pan-European Stoxx 600 was down around 0.6 percent during early afternoon deals, with almost all sectors and major bourses in negative territory. Britain’s FTSE 100 index led the gains, shortly after reports emerged suggesting a crucial Brexit vote could be pulled. Europe’s chemicals stocks led the losses Monday afternoon, down over 1.5 percent. Autos stock — seen as a trade war proxy because of its export-heavy constituents — were also trading more than 1.5 percent lower amid elevated trade
European markets fall amid global growth worries; sterling slips to 18-month low amid Brexit vote chaos Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: sam meredith
Keywords: news, cnbc, companies, worries, 15, afternoon, low, markets, trading, deals, slipped, company, vote, trade, stocks, led, early, fall, slips, global, amid, sterling, growth


European markets fall amid global growth worries; sterling slips to 18-month low amid Brexit vote chaos

The pan-European Stoxx 600 was down around 0.6 percent during early afternoon deals, with almost all sectors and major bourses in negative territory.

Britain’s FTSE 100 index led the gains, shortly after reports emerged suggesting a crucial Brexit vote could be pulled.

Meanwhile, sterling slipped to one-and-a-half year lows on the news. The U.K. currency was trading at around 1.2665 against the dollar at around 12:05 p.m. London time.

Europe’s chemicals stocks led the losses Monday afternoon, down over 1.5 percent. Germany’s BASF SE was the worst sectoral performer, slipping nearly 5 percent after the company slashed its forecast for profits in 2018 late last week.

Autos stock — seen as a trade war proxy because of its export-heavy constituents — were also trading more than 1.5 percent lower amid elevated trade tensions. Fiat Chrysler slipped almost 3 percent Monday lunchtime.

Looking at individual stocks, Air France KLM rose toward the top of the European benchmark during early afternoon deals. It comes after the airline reported better-than-expected traffic figures for November, prompting shares to rise over 1.6 percent. However, the Paris-listed company is still down around 30 percent year-to-date.


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: sam meredith
Keywords: news, cnbc, companies, worries, 15, afternoon, low, markets, trading, deals, slipped, company, vote, trade, stocks, led, early, fall, slips, global, amid, sterling, growth


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Dow turns negative, drops 200 points as bank shares fall

News of Meng’s arrest broke last week and is reportedly related to possible violations of U.S. sanctions. The arrest is seen as a potential deterrent to the U.S. and China reaching a permanent deal on trade. Huawei is one of the largest tech companies in China and is seen as symbol of pride by the Chinese government. On Dec. 1, President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the countries’ trade spat. He added that additional tariffs will be placed on Chinese


News of Meng’s arrest broke last week and is reportedly related to possible violations of U.S. sanctions. The arrest is seen as a potential deterrent to the U.S. and China reaching a permanent deal on trade. Huawei is one of the largest tech companies in China and is seen as symbol of pride by the Chinese government. On Dec. 1, President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the countries’ trade spat. He added that additional tariffs will be placed on Chinese
Dow turns negative, drops 200 points as bank shares fall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: fred imbert, getty images
Keywords: news, cnbc, companies, chinese, negative, points, shares, week, truce, trade, dow, bank, stocks, turns, deal, fall, reached, tariffs, drops, yield, trump, 200


Dow turns negative, drops 200 points as bank shares fall

News of Meng’s arrest broke last week and is reportedly related to possible violations of U.S. sanctions. The arrest is seen as a potential deterrent to the U.S. and China reaching a permanent deal on trade. Huawei is one of the largest tech companies in China and is seen as symbol of pride by the Chinese government. Meng is scheduled to appear at a bail hearing in Canada later on Monday.

Monday’s moves come after a volatile week for investors. The Dow, S&P 500 and Nasdaq Composite all posted their worst weekly performances since March last week, falling more than 4 percent each, as worries and confusion about the ongoing U.S.-China trade war and fears of an economic slowdown gripped Wall Street.

“The volatility continues,” said Mark Newton, managing member at Newton Advisors, in a note to clients. “Stocks reversed the prior week’s rally violently over the last few days, and now have reached the bottom of the recent trading consolidation that’s been in place for the past few months.”

“Seeing a larger breakdown in the indices at this point would confirm that stocks have definitely started a larger correction that should eventually lead to a bear market,” he said.

On Dec. 1, President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on the countries’ trade spat. Both leaders agreed not to slap additional tariffs on billions of dollars worth of goods from their countries. It was not immediately clear, however, when the truce started as administration officials disagreed on the matter. Trump later said on Twitter the cease-fire began on Saturday, when he and Xi struck the deal.

The mixed messages did not stop there, however. National Economic Council Director Larry Kudlow told CNBC on Friday that Trump would extend the 90-day grace period if progress in the negotiations was made but a permanent deal could not be reached. Later that day, trade advisor Peter Navarro told CNN that Trump would “simply raise” tariffs on Chinese goods if a permanent deal was not struck after the 90 days.

U.S. Trade Representative Robert Lighthizer warned on Sunday he considers March 1 — when the truce is scheduled to end — as “a hard deadline.” He added that additional tariffs will be placed on Chinese goods if a deal is not reached by then.

Meanwhile, the 3-year Treasury note yield broke above its 5-year counterpart last week. This “yield-curve inversion” stoked fears that a recession could be on its way. Still, many traders believe the inversion won’t be official until the 2-year yield rises above the 10-year yield, which has not happened yet.

Strategists at MRB Partners think investors might be overreacting to the moves in Treasury yields. “Markets are now discounting greater weakness than we expect next year,” they said in a note. “Our neutral stance on equities and underweight on fixed income corresponds with our expectation that stocks will outperform bonds in the year ahead, albeit in choppy fashion.”

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Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: fred imbert, getty images
Keywords: news, cnbc, companies, chinese, negative, points, shares, week, truce, trade, dow, bank, stocks, turns, deal, fall, reached, tariffs, drops, yield, trump, 200


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World food prices fall to lowest in more than two years in Nov

World food prices declined in November to their lowest level in more than two years, led down by much weaker vegetable oil, dairy and cereal prices, the United Nations food agency said on Thursday. The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 160.8 points last month, down from a revised 162.9 in October, reaching its lowest level since May 2016. The October figure was pre


World food prices declined in November to their lowest level in more than two years, led down by much weaker vegetable oil, dairy and cereal prices, the United Nations food agency said on Thursday. The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 160.8 points last month, down from a revised 162.9 in October, reaching its lowest level since May 2016. The October figure was pre
World food prices fall to lowest in more than two years in Nov Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: benjamin boshart, bloomberg, getty images
Keywords: news, cnbc, companies, million, fall, level, dairy, forecast, food, world, prices, previous, tonnes, nov, lowest


World food prices fall to lowest in more than two years in Nov

World food prices declined in November to their lowest level in more than two years, led down by much weaker vegetable oil, dairy and cereal prices, the United Nations food agency said on Thursday.

The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 160.8 points last month, down from a revised 162.9 in October, reaching its lowest level since May 2016.

The October figure was previously given as 163.5.

FAO said global cereals output in 2018/19 was seen at 2.595 billion tonnes, down marginally from the previous forecast and 2.4 percent below last year’s record high production.

FAO’s forecast for world wheat production in 2018/19 was 725.1 million tonnes, 2.8 million tonnes lower than the previous forecast.


Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: benjamin boshart, bloomberg, getty images
Keywords: news, cnbc, companies, million, fall, level, dairy, forecast, food, world, prices, previous, tonnes, nov, lowest


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European stocks fall amid rising trade war fears; Hargreaves Lansdown slips 4%

Europe’s construction and material stocks were among the worst performers, down more than 2 percent amid growing trade war concerns. France’s Saint-Gobain led the sectoral losses after J.P. Morgan cut its stock recommendation to “neutral” from “overweight.” Looking at individual stocks, Britain’s Hargreaves Lansdown slumped to the bottom of the European benchmark after Morgan Stanley cut its stock recommendation to “underweight” from “equal-weight.” Meanwhile, U.K.-listed drugmaker Shire was amo


Europe’s construction and material stocks were among the worst performers, down more than 2 percent amid growing trade war concerns. France’s Saint-Gobain led the sectoral losses after J.P. Morgan cut its stock recommendation to “neutral” from “overweight.” Looking at individual stocks, Britain’s Hargreaves Lansdown slumped to the bottom of the European benchmark after Morgan Stanley cut its stock recommendation to “underweight” from “equal-weight.” Meanwhile, U.K.-listed drugmaker Shire was amo
European stocks fall amid rising trade war fears; Hargreaves Lansdown slips 4% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: sam meredith
Keywords: news, cnbc, companies, britains, morgan, cut, performers, stock, trade, fears, shire, european, slips, shares, stocks, rising, morning, recommendation, lansdown, hargreaves, war, fall


European stocks fall amid rising trade war fears; Hargreaves Lansdown slips 4%

Europe’s construction and material stocks were among the worst performers, down more than 2 percent amid growing trade war concerns. France’s Saint-Gobain led the sectoral losses after J.P. Morgan cut its stock recommendation to “neutral” from “overweight.” Shares of the Paris-listed stock dipped almost 3 percent on the news.

Looking at individual stocks, Britain’s Hargreaves Lansdown slumped to the bottom of the European benchmark after Morgan Stanley cut its stock recommendation to “underweight” from “equal-weight.” Shares of the London-listed firm fell 4 percent Wednesday morning.

Meanwhile, U.K.-listed drugmaker Shire was among the top performers on Britain’s FTSE 100 index during early morning deals. Japan’s Takeda Pharmaceutical secured shareholder approval to complete a £46 billion ($59 billion) takeover of the company Wednesday morning, prompting shares of Shire to jump 2.5 percent.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: sam meredith
Keywords: news, cnbc, companies, britains, morgan, cut, performers, stock, trade, fears, shire, european, slips, shares, stocks, rising, morning, recommendation, lansdown, hargreaves, war, fall


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US market sell-off set to continue as Dow futures fall

U.S. stock futures opened lower Wednesday amid lingering anxiety about a possible economic slowdown and continued murkiness around trade relations with China. On Wednesday evening, futures initially indicated that the Dow Jones Industrial Average would open 400 points lower. Dow futures fell as much as 486 points at their lows. As of 2:24 a.m., ET Thursday, the futures indicated that the Dow would open 259.07 points lower on Thursday. Over the weekend, U.S. President Donald Trump met with Chines


U.S. stock futures opened lower Wednesday amid lingering anxiety about a possible economic slowdown and continued murkiness around trade relations with China. On Wednesday evening, futures initially indicated that the Dow Jones Industrial Average would open 400 points lower. Dow futures fell as much as 486 points at their lows. As of 2:24 a.m., ET Thursday, the futures indicated that the Dow would open 259.07 points lower on Thursday. Over the weekend, U.S. President Donald Trump met with Chines
US market sell-off set to continue as Dow futures fall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: christine wang, eustance huang, brendan mcdermid
Keywords: news, cnbc, companies, fall, points, open, dow, futures, president, xi, trade, continue, yield, selloff, lower, market, set


US market sell-off set to continue as Dow futures fall

U.S. stock futures opened lower Wednesday amid lingering anxiety about a possible economic slowdown and continued murkiness around trade relations with China.

On Wednesday evening, futures initially indicated that the Dow Jones Industrial Average would open 400 points lower. Dow futures fell as much as 486 points at their lows. As of 2:24 a.m., ET Thursday, the futures indicated that the Dow would open 259.07 points lower on Thursday.

The New York Stock Exchange, Nasdaq and U.S. Treasury market were closed Wednesday as the nation remembered former president George H.W. Bush.

On Tuesday, the Dow Jones Industrial Average shed nearly 800 points in its largest decline since Oct. 10.

On Monday, the yield on the three-year Treasury note surpassed its five-year counterpart. That bond-market phenomenon, known as a yield-curve inversion, is seen as a recession signal. But typically the recession doesn’t come until years after and many traders won’t see the inversion as official until the two-year yield rises above the 10-year yield.

Investors remain uncertain about the prospects of a permanent trade deal with China. Over the weekend, U.S. President Donald Trump met with Chinese President Xi Jinping to discuss ongoing trade quarrels between their two countries. While the White House has said it has worked out a cease-fire with Beijing, discrepancies in messaging haven’t assuaged market fears of uncertainty.

“Unfortunately until we get new news the market continues to be a caldron of concerns causing caution with investors,” said Art Hogan, B. Riley FBR’s chief market strategist. “With the combination of he said Xi said on China trade, a fear of an economic slowdown in 2019, and the slow trickle of Mueller investigation reports coming out, it is not at all surprising to see a buyer’s strike in the after hours market.”

Still, Hogan added, there will be a “plethora of data as Markets open on Thursday and on Friday with the jobs report that might turn the tide of negative sentiment.” But until then, he said, “we are stuck in a news vacuum and most of the news that we do have leans to the negative.”

—CNBC’s Fred Imbert and Tom Franck contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: christine wang, eustance huang, brendan mcdermid
Keywords: news, cnbc, companies, fall, points, open, dow, futures, president, xi, trade, continue, yield, selloff, lower, market, set


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Dollar weakens as US bond yields fall, trade tariff postponement supports riskier currencies

The dollar slipped in Asia on Tuesday as U.S. Treasury yields fell to three-month lows, a sign some investors were wagering the Federal Reserve would slow the pace of its rate hikes. The U.S. 10-year Treasury yield fell to 2.94 percent on Tuesday, its lowest level since mid September. “Falling U.S. yields are a negative for the dollar, especially versus the major currencies,” said Rodrigo Catril, senior currency strategist at NAB. Catril added that U.S. Treasury yields are near crucial technical


The dollar slipped in Asia on Tuesday as U.S. Treasury yields fell to three-month lows, a sign some investors were wagering the Federal Reserve would slow the pace of its rate hikes. The U.S. 10-year Treasury yield fell to 2.94 percent on Tuesday, its lowest level since mid September. “Falling U.S. yields are a negative for the dollar, especially versus the major currencies,” said Rodrigo Catril, senior currency strategist at NAB. Catril added that U.S. Treasury yields are near crucial technical
Dollar weakens as US bond yields fall, trade tariff postponement supports riskier currencies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: tyrone siu
Keywords: news, cnbc, companies, trade, dollar, yuan, tariff, weakens, fall, yield, treasury, fed, versus, rate, fell, postponement, yields, riskier, currencies, supports


Dollar weakens as US bond yields fall, trade tariff postponement supports riskier currencies

The dollar slipped in Asia on Tuesday as U.S. Treasury yields fell to three-month lows, a sign some investors were wagering the Federal Reserve would slow the pace of its rate hikes.

The weakness in the dollar comes against the backdrop of a temporary truce in the US-China trade conflict, which has bolstered investor confidence in riskier currencies versus the safe-haven greenback.

The U.S. 10-year Treasury yield fell to 2.94 percent on Tuesday, its lowest level since mid September. The difference in yield between the U.S. 2-year and 10-year tightened to its smallest since July 2007.

The two-10-year yield curve is a key focus for investors as an inversion is seen as predictor of a U.S. recession. A yield curve is said to be inverted when yields on longer-dated maturity bonds are lower than shorter-dated maturity bonds.

The yield curve has flattened as continuing interest rate hikes send short-dated yields higher, while longer-dated Treasuries are supported by tepid inflation and slowing global growth.

“Falling U.S. yields are a negative for the dollar, especially versus the major currencies,” said Rodrigo Catril, senior currency strategist at NAB.

Catril added that U.S. Treasury yields are near crucial technical support levels, a break of which could add further pressure on U.S. yields and the dollar.

The dollar index, a gauge of its value versus six major peers, was off 0.23 percent at 96.8.

The dollar had been supported for most of 2018 by a robust U.S. economy and a relatively hawkish Fed, which is widely expected to raise its policy interest rate later this month.

Markets have priced in an 87 percent probability of a rate hike at the Fed’s Dec. 18-19 meeting.

The dollar came under pressure last week when the market took comments from Fed Chair Jerome Powell as signalling a slower pace of rate hikes.

A more dovish tone from the Fed last week has led markets to question how many times the central bank will hike rates in 2019.

“Given data remains strong, we think the Fed will hike twice in 2019 and that’s more than what the market is pricing in right now…we remain moderately bullish on the dollar,” said Nick Twidale, chief operating officer at Rakuten Securities.

Currencies such as the Chinese yuan, which were battered in the US-China trade war, are expected to trade stronger versus the greenback in the coming weeks as investor sentiment improves.

The dollar fell 0.5 percent against the offshore yuan to 6.8375. On Monday, it lost 1.07 percent, its steepest percentage fall since Aug. 25.

“For now, it seems China has got the best out of G20 and we expect the yuan to remain supported,” added Twidale.

However, he warned that markets need to see a further easing in trade tensions for the risk-on rally to continue.

The Australian dollar gained 0.3 percent in Asian trade at $0.7376. The Reserve Bank of Australia kept its policy cash rate unchanged on Tuesday in a widely expected move.

The yen traded at 113.13 to the dollar, with the greenback losing 0.4 percent versus the Japanese currency.

Elsewhere, sterling was gained 0.2 percent to trade at $1.2744 due to broad dollar weakness. On Monday, the pound fell below $1.27 for the first time since Oct. 31.

Sterling has posted losses for three consecutive weeks as traders bet that British Prime Minister Theresa May will not be able to pass her Brexit deal through parliament on Dec. 11.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: tyrone siu
Keywords: news, cnbc, companies, trade, dollar, yuan, tariff, weakens, fall, yield, treasury, fed, versus, rate, fell, postponement, yields, riskier, currencies, supports


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UPS, FedEx shares fall into bear market as Morgan Stanley sees rising competition from ‘Amazon Air’

Shares of FedEx and UPS closed in bear territory on Tuesday after Morgan Stanley said “the market is missing the risk Amazon Air poses” to the growth of the delivery service companies. UPS stock closed down 7.4 percent in trading at $106.77 a share, while FedEx dropped 6.3 percent to $215.52 a share. Morgan Stanley believes Amazon Air represents 2 percent of potential revenue lost for UPS and FedEx this year. Morgan Stanley lowered its price targets accordingly, dropping UPS to $87 a share from


Shares of FedEx and UPS closed in bear territory on Tuesday after Morgan Stanley said “the market is missing the risk Amazon Air poses” to the growth of the delivery service companies. UPS stock closed down 7.4 percent in trading at $106.77 a share, while FedEx dropped 6.3 percent to $215.52 a share. Morgan Stanley believes Amazon Air represents 2 percent of potential revenue lost for UPS and FedEx this year. Morgan Stanley lowered its price targets accordingly, dropping UPS to $87 a share from
UPS, FedEx shares fall into bear market as Morgan Stanley sees rising competition from ‘Amazon Air’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: michael sheetz, johan nilsson, afp, getty images
Keywords: news, cnbc, companies, planes, shares, market, share, ups, fall, savings, sees, rising, shanker, competition, unit, air, morgan, fedex, stanley, amazon


UPS, FedEx shares fall into bear market as Morgan Stanley sees rising competition from 'Amazon Air'

Shares of FedEx and UPS closed in bear territory on Tuesday after Morgan Stanley said “the market is missing the risk Amazon Air poses” to the growth of the delivery service companies.

“For now, investors are focusing on Amazon’s last-mile efforts but we believe the challenge in Air is just as relevant,” Morgan Stanley’s Ravi Shanker said in a note to investors. “But given Amazon’s plans to take delivery of 40 planes and build an air hub that could potentially handle 100 planes, we’ve taken a closer look at the impact of Amazon Air (its in-house Express Air network) on UPS/FedEx Air volumes.”

UPS stock closed down 7.4 percent in trading at $106.77 a share, while FedEx dropped 6.3 percent to $215.52 a share. The companies’ shares have fallen 21.2 percent and 21.5 percent respectively from recent highs. Wall Street defines a bear market as a fall of 20 percent or more from a stock’s 52-week high.

Morgan Stanley believes Amazon Air represents 2 percent of potential revenue lost for UPS and FedEx this year. The firm sees that revenue loss accelerating to more than 10 percent by 2025.

“We expect this drag to intensify once Amazon Air has all 40 planes in the air (and potentially 100 planes if it runs its planned air hub at capacity) and as its utilization improves to UPS/FedEx levels,” Shanker said.

Morgan Stanley lowered its price targets accordingly, dropping UPS to $87 a share from $92 a share and FedEx to $230 a share from $240 a share.

Amazon also also may “see meaningful gross cost savings,” Shanker said. By bringing express shipping costs in house, Morgan Stanley estimates Amazon will pay about $6 a unit — rather than about $8 a unit for UPS and $10 a unit at FedEx.

“This implies that in 2019, the ~$2-4 savings per package could result in [$1 billion to $2 billion] savings for Amazon, or [3 percent to 6 percent] of its global shipping costs,” Shanker said.

WATCH: This small-rocket unicorn wants to be the FedEx of space


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: michael sheetz, johan nilsson, afp, getty images
Keywords: news, cnbc, companies, planes, shares, market, share, ups, fall, savings, sees, rising, shanker, competition, unit, air, morgan, fedex, stanley, amazon


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Apple shares fall after HSBC downgrade: ‘Facing the reality of market saturation’

Apple shares fell Tuesday after HSBC downgraded the stock, citing too much dependence on a single product and slowing emerging markets economies. Apple shares fell 1.7 percent to $181.66 shortly after the opening bell Tuesday, adding to an 18 percent decline already for this quarter. The note from the HSBC analysts said:”Apple’s iconic hardware unit growth is broadly over for now. It concluded that Apple’s shares are not “particularly expensive” but don’t deserve a higher multiple associated wit


Apple shares fell Tuesday after HSBC downgraded the stock, citing too much dependence on a single product and slowing emerging markets economies. Apple shares fell 1.7 percent to $181.66 shortly after the opening bell Tuesday, adding to an 18 percent decline already for this quarter. The note from the HSBC analysts said:”Apple’s iconic hardware unit growth is broadly over for now. It concluded that Apple’s shares are not “particularly expensive” but don’t deserve a higher multiple associated wit
Apple shares fall after HSBC downgrade: ‘Facing the reality of market saturation’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: john melloy, yves herman
Keywords: news, cnbc, companies, stock, shares, market, downgrade, price, growth, fall, hsbc, apple, apples, facing, saturation, multiple, higher, stocks, unit, reality


Apple shares fall after HSBC downgrade: 'Facing the reality of market saturation'

Apple shares fell Tuesday after HSBC downgraded the stock, citing too much dependence on a single product and slowing emerging markets economies.

HSBC downgraded Apple to hold from buy and cut its 12-month price target to $200 from $205. Apple shares fell 1.7 percent to $181.66 shortly after the opening bell Tuesday, adding to an 18 percent decline already for this quarter.

The note from the HSBC analysts said:

“Apple’s iconic hardware unit growth is broadly over for now. Revenues are only supported by higher selling prices and by the development of services. Flat unit growth has hit Apple’s share price and incidentally its key suppliers. What has made the success of Apple, a concentrated portfolio of highly desirable (and pricy) products is now facing the reality of market saturation.”

HSBC also went into an in-depth analysis of whether Apple should trade at a higher earnings multiple in line with stocks that sell luxury goods. It concluded that Apple’s shares are not “particularly expensive” but don’t deserve a higher multiple associated with luxury brands.

And if its multiple won’t expand, there isn’t any other way to justify a higher stock price since earnings and revenue growth are likely to slow, the analysts said.

“As Apple moves from very high double-digit revenue growth to a more pedestrian mid single-digit (both top and bottom line), the slowdown in the second derivative of growth will weigh on the stock’s investment case,” the note said. “While we understand the company’s interest of not disclosing unit sales of hardware and focusing more on service gross margin, investor enthusiasm could be the victim of a lengthy transition phase as the focus shifts.”

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Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: john melloy, yves herman
Keywords: news, cnbc, companies, stock, shares, market, downgrade, price, growth, fall, hsbc, apple, apples, facing, saturation, multiple, higher, stocks, unit, reality


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