The Fed is ‘not yet done’ with rate hikes, according to S&P Global Ratings

Still expecting one more rate hike from Fed this year: Analyst 3:16 AM ET Thu, 21 March 2019 | 02:39The U.S. Federal Reserve on Wednesday kept interest rates unchanged and slashed all projections of a rate hike this year. Still, according to U.S.-based financial services giant S&P Global Ratings, the Fed is “not yet done” with rate hikes. Speaking to CNBC’s “Capital Connection” on Thursday, Shaun Roache said better-than-expected economic growth and strong labor markets leave room for a hike. The


Still expecting one more rate hike from Fed this year: Analyst 3:16 AM ET Thu, 21 March 2019 | 02:39The U.S. Federal Reserve on Wednesday kept interest rates unchanged and slashed all projections of a rate hike this year. Still, according to U.S.-based financial services giant S&P Global Ratings, the Fed is “not yet done” with rate hikes. Speaking to CNBC’s “Capital Connection” on Thursday, Shaun Roache said better-than-expected economic growth and strong labor markets leave room for a hike. The
The Fed is ‘not yet done’ with rate hikes, according to S&P Global Ratings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-22  Authors: shirley tay, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, federal, ratings, growth, rate, roache, hike, fed, projections, global, increase, according, hikes, sp


The Fed is 'not yet done' with rate hikes, according to S&P Global Ratings

Still expecting one more rate hike from Fed this year: Analyst 3:16 AM ET Thu, 21 March 2019 | 02:39

The U.S. Federal Reserve on Wednesday kept interest rates unchanged and slashed all projections of a rate hike this year.

Still, according to U.S.-based financial services giant S&P Global Ratings, the Fed is “not yet done” with rate hikes. Its chief Asia-Pacific economist told CNBC he thinks another increase may come sometime this year or early next year.

Speaking to CNBC’s “Capital Connection” on Thursday, Shaun Roache said better-than-expected economic growth and strong labor markets leave room for a hike.

Wednesday’s statement was a dovish turn from previous Federal Open Market Committee projections. The committee had previously predicted two rate hikes in 2019, following four increases in 2018.

The FOMC said it would be “patient” before any further increase in rates.

Given the “soft patch” the global economy is going through, Roache acknowledged that “it makes sense for the Fed to pause to watch the data to see how things evolve.” Still, he said he felt that concerns about global growth were “a little bit overdone.”


Company: cnbc, Activity: cnbc, Date: 2019-03-22  Authors: shirley tay, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, federal, ratings, growth, rate, roache, hike, fed, projections, global, increase, according, hikes, sp


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A growing list of companies from FedEx to BMW are warning about the world economy

Corporate giants doing business abroad are painting a dreary picture of the world’s economy. With an ongoing trade war between the U.S. and China, Brexit uncertainty weighing on Europe and the U.K., and new weakness out of Japan, some business leaders say it’s harder than ever to rake in profits. This week, top executives at FedEx, BMW, UBS and others described bleak global business conditions while discussing quarterly results. The multinational package delivery service reported sluggish intern


Corporate giants doing business abroad are painting a dreary picture of the world’s economy. With an ongoing trade war between the U.S. and China, Brexit uncertainty weighing on Europe and the U.K., and new weakness out of Japan, some business leaders say it’s harder than ever to rake in profits. This week, top executives at FedEx, BMW, UBS and others described bleak global business conditions while discussing quarterly results. The multinational package delivery service reported sluggish intern
A growing list of companies from FedEx to BMW are warning about the world economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: kate rooney, stefan wermuth, bloomberg, getty images, luke sharrett, mark schiefelbein, afp
Keywords: news, cnbc, companies, companies, quarterly, ongoing, conditions, global, business, bmw, international, worlds, growing, economy, trade, list, revenue, world, fedex, warning


A growing list of companies from FedEx to BMW are warning about the world economy

Corporate giants doing business abroad are painting a dreary picture of the world’s economy.

With an ongoing trade war between the U.S. and China, Brexit uncertainty weighing on Europe and the U.K., and new weakness out of Japan, some business leaders say it’s harder than ever to rake in profits.

This week, top executives at FedEx, BMW, UBS and others described bleak global business conditions while discussing quarterly results. Fitch Ratings also “aggressively” cut its forecast for the year.

The head of UBS was among the latest to blame the world’s backdrop for weaker-than-expected results. CEO Ermotti told a conference in London on Wednesday that it “one of the worst first-quarter environments in recent history,” Reuters reported. The Swiss bank slashed another $300 million from 2019 costs after revenue at its investment bank plunged. Investment banking conditions are among the toughest seen in years, especially outside the U.S., he said.

Ermotti’s remarks echo the sentiment from FedEx a day earlier. The multinational package delivery service reported sluggish international revenue on Tuesday as a result of tough exchange rates and ongoing trade battles.

“Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue,” Chief Financial Officer Alan B. Graf Jr. said in FedEx’s quarterly earnings report.

BMW is another with a less-than-rosy outlook. The German automaker said it expected pretax profit to fall by more than 10 percent in 2019, and its CFO said global conditions make it hard to provide a clear forecast.

“Depending on how conditions develop, our guidance may be subject to additional risks; in particular, the risk of a no-deal Brexit and ongoing developments in international trade policy,” CFO Nicolas Peter said in BMW’s quarterly earnings report Wednesday.


Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: kate rooney, stefan wermuth, bloomberg, getty images, luke sharrett, mark schiefelbein, afp
Keywords: news, cnbc, companies, companies, quarterly, ongoing, conditions, global, business, bmw, international, worlds, growing, economy, trade, list, revenue, world, fedex, warning


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There was mysterious selling in FedEx on Tuesday before poor earnings took down the stock

These are when the really smart money tips their hand by buying or selling an abnormally large amount of stock or options ahead of an event. Whether that event is an earnings report, new product introduction, or industry conference, the activity in the hours that preceded such catalysts can be amazingly predictive. The stock closed at $181.41, down slightly, and this was absent any news in the company. Sure enough, FedEx’s quarterly results missed on earnings and revenue missed estimates with CF


These are when the really smart money tips their hand by buying or selling an abnormally large amount of stock or options ahead of an event. Whether that event is an earnings report, new product introduction, or industry conference, the activity in the hours that preceded such catalysts can be amazingly predictive. The stock closed at $181.41, down slightly, and this was absent any news in the company. Sure enough, FedEx’s quarterly results missed on earnings and revenue missed estimates with CF
There was mysterious selling in FedEx on Tuesday before poor earnings took down the stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: jon najarian, getty images
Keywords: news, cnbc, companies, stock, mysterious, global, selling, earnings, hours, poor, international, missed, graf, shares, fedex, revenue, took


There was mysterious selling in FedEx on Tuesday before poor earnings took down the stock

We are always looking for the so-called tells in the market. These are when the really smart money tips their hand by buying or selling an abnormally large amount of stock or options ahead of an event.

Whether that event is an earnings report, new product introduction, or industry conference, the activity in the hours that preceded such catalysts can be amazingly predictive.

Such was the case of FedEx on Tuesday, as shares opened higher, traded to $185 per share at its high of the day and then were hit with massive waves of block selling. It took all of 15 minutes to drive shares off their session highs. The stock closed at $181.41, down slightly, and this was absent any news in the company.

Sure enough, FedEx’s quarterly results missed on earnings and revenue missed estimates with CFO Alan Graf citing weak global economic conditions. The shares tanked after hours.

“Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue,” Graf said in a statement.

The stock was down more than 6 percent in premarket trading Wednesday, highlighting once again why what happens in the hours ahead of these events is so critical to follow.

—CNBC’s Fred Imbert contributed to this report.

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Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: jon najarian, getty images
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Auto stocks fall after BMW warns of global economic slowdown, trade trouble

Shares of automakers fell Wednesday after BMW warned of lower profits, citing international trade tension and the potential impact of Brexit as possible drags on global economic growth. BMW executives said the industry faces a fiercely competitive environment, dogged by questions about how tariffs and trade tension between the U.S., China and Europe could affect supply chains, manufacturing and sales. “Political and economic developments in Europe remain increasingly uncertain,” BMW said in its


Shares of automakers fell Wednesday after BMW warned of lower profits, citing international trade tension and the potential impact of Brexit as possible drags on global economic growth. BMW executives said the industry faces a fiercely competitive environment, dogged by questions about how tariffs and trade tension between the U.S., China and Europe could affect supply chains, manufacturing and sales. “Political and economic developments in Europe remain increasingly uncertain,” BMW said in its
Auto stocks fall after BMW warns of global economic slowdown, trade trouble Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: robert ferris, luke sharrett, bloomberg, getty images
Keywords: news, cnbc, companies, stocks, fell, global, vehicles, trouble, auto, impact, bmw, fall, economic, tension, tariffs, slowdown, trade, trading, warns


Auto stocks fall after BMW warns of global economic slowdown, trade trouble

Shares of automakers fell Wednesday after BMW warned of lower profits, citing international trade tension and the potential impact of Brexit as possible drags on global economic growth.

BMW executives said the industry faces a fiercely competitive environment, dogged by questions about how tariffs and trade tension between the U.S., China and Europe could affect supply chains, manufacturing and sales.

The news comes one day after FedEx executives expressed worries over a slowing global economy.

All three Detroit automakers declined in morning trading Wednesday. Shares of Ford fell 2.3 percent, Fiat Chrysler fell 2 percent and General Motors dipped 2.6 percent.

“Political and economic developments in Europe remain increasingly uncertain,” BMW said in its annual report Wednesday. It specifically cited the “unforeseeable impact of Brexit” and U.S. trade tensions with the European Union and China.

Politico also reported Wednesday that President Trump has the legal grounds impose tariffs on cars imported to the United States, further spooking investors.

“A possible introduction of further trade barriers, including anti-dumping customs duties and duties aimed at protecting national security by the U.S. administration, could have a significantly adverse impact on the BMW Group’s operations through less favorable conditions for importing vehicles,” BMW said. “Moreover, countermeasures by the USA’s trading partners could slow down global economic growth and have a greater-than-expected adverse impact on the export of vehicles produced in the USA.”

This is a breaking news story. Please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: robert ferris, luke sharrett, bloomberg, getty images
Keywords: news, cnbc, companies, stocks, fell, global, vehicles, trouble, auto, impact, bmw, fall, economic, tension, tariffs, slowdown, trade, trading, warns


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Chipmakers are on pace for their best first quarter ever as fears about global economy ease

The Federal Reserve’s move to pause interest rate hikes has bolstered high-flying growth names like Advanced Micro Devices and Micron. Both of these companies are among the best performers this year, with AMD up more than 27 percent and Micron up more than 23 percent. But that hasn’t stopped investors from jumping in, as many point to improving signs about the U.S. and global economy. “These days the semiconductor companies have their tentacles in everything,” CNBC’s Jim Cramer, host of “Mad Mon


The Federal Reserve’s move to pause interest rate hikes has bolstered high-flying growth names like Advanced Micro Devices and Micron. Both of these companies are among the best performers this year, with AMD up more than 27 percent and Micron up more than 23 percent. But that hasn’t stopped investors from jumping in, as many point to improving signs about the U.S. and global economy. “These days the semiconductor companies have their tentacles in everything,” CNBC’s Jim Cramer, host of “Mad Mon
Chipmakers are on pace for their best first quarter ever as fears about global economy ease Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: jr reed, michaela rehle
Keywords: news, cnbc, companies, companies, nvidia, economy, chipmakers, best, recent, ease, issued, quarter, micron, stocks, global, fears, intel, weight, semiconductor, investors, pace


Chipmakers are on pace for their best first quarter ever as fears about global economy ease

But, amid investors’ newfound optimism and more encouraging trends in the semiconductor industry, chip stocks have rallied more than 31 percent off of their recent low hit on Dec. 26. The Federal Reserve’s move to pause interest rate hikes has bolstered high-flying growth names like Advanced Micro Devices and Micron. Both of these companies are among the best performers this year, with AMD up more than 27 percent and Micron up more than 23 percent. Rising rates tend to hurt these stocks as investors adjust to the new environment.

The chipmakers’ rally has come despite a mixed set of earnings reports over the past several weeks. On Friday, Broadcom jumped more than 8 percent after reporting better-than-expected results and issued encouraging guidance for the rest of 2019. But its peers have not been as successful in assuaging investors’ concerns. In late January, Nvidia reported its first quarterly year-over-year revenue decline in five years, while Intel lowered its outlook for the year, citing ongoing trade concerns. Qorvo, meanwhile, issued guidance well below Wall Street expectations in its report in early February.

But that hasn’t stopped investors from jumping in, as many point to improving signs about the U.S. and global economy.

“These days the semiconductor companies have their tentacles in everything,” CNBC’s Jim Cramer, host of “Mad Money”, said this week. “Now, I often tell you that housing punches above its weight when we talk about the economy. If housing’s strong, then the strength might spread to banks and retail. These days, in the new global economy dominated by data, the semiconductor stocks punch well above their weight, just like housing.”

Nvidia’s $6.8 billion bid to buy Israeli chipmaker Mellanox has also helped renew investors’ faith in this beaten-down sector. Nvidia beat out several other potential suitors, including rival Intel, and some see the move as evidence that these companies are more aggressively pursuing new growth channels.

The deal, if approved, would mark Nvidia’s biggest ever acquisition as it pushes into the growing data center market. The stock has now surged more than 27 percent to start the year, but it still down 42 percent from its most recent peak in early October.


Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: jr reed, michaela rehle
Keywords: news, cnbc, companies, companies, nvidia, economy, chipmakers, best, recent, ease, issued, quarter, micron, stocks, global, fears, intel, weight, semiconductor, investors, pace


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Saudi Arabia’s stock exchange makes its debut on global emerging markets indexes

Saudi Arabia’s stock exchange, the Tadawul, took its first step Monday of inclusion in two major international indexes: the FTSE Russell and S&P Dow Jones’ emerging markets indices. The inclusion marks a continuation of efforts by the Saudi kingdom to open up its market to international investors, Tadawul CEO Khalid Abdullah al-Hussan told CNBC’s Hadley Gamble in Riyadh. “We haven’t seen any turbulence on inflows of cash for the first tranche of FTSE and it was very smooth by both the sellers an


Saudi Arabia’s stock exchange, the Tadawul, took its first step Monday of inclusion in two major international indexes: the FTSE Russell and S&P Dow Jones’ emerging markets indices. The inclusion marks a continuation of efforts by the Saudi kingdom to open up its market to international investors, Tadawul CEO Khalid Abdullah al-Hussan told CNBC’s Hadley Gamble in Riyadh. “We haven’t seen any turbulence on inflows of cash for the first tranche of FTSE and it was very smooth by both the sellers an
Saudi Arabia’s stock exchange makes its debut on global emerging markets indexes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: natasha turak, simon dawson bloomberg getty images
Keywords: news, cnbc, companies, debut, stock, alhussan, inclusion, saudi, investors, global, makes, exchange, emerging, markets, arabias, inflows, international, market, tadawul, ftse, indexes


Saudi Arabia's stock exchange makes its debut on global emerging markets indexes

Saudi Arabia’s stock exchange, the Tadawul, took its first step Monday of inclusion in two major international indexes: the FTSE Russell and S&P Dow Jones’ emerging markets indices.

The inclusion marks a continuation of efforts by the Saudi kingdom to open up its market to international investors, Tadawul CEO Khalid Abdullah al-Hussan told CNBC’s Hadley Gamble in Riyadh.

“We haven’t seen any turbulence on inflows of cash for the first tranche of FTSE and it was very smooth by both the sellers and as well as the buyers, which in my opinion confirmed the confidence of international investors to participate in the Saudi markets and the regulatory framework of the Saudi capital market,” al-Hussan said.

Al-Hussan expects this inclusion to bring in around $15 billion in passive inflows across the indices, adding that calculating the expected active funds is more challenging.


Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: natasha turak, simon dawson bloomberg getty images
Keywords: news, cnbc, companies, debut, stock, alhussan, inclusion, saudi, investors, global, makes, exchange, emerging, markets, arabias, inflows, international, market, tadawul, ftse, indexes


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Chipmakers are on pace for their best first quarter ever as fears about global economy ease

The Federal Reserve’s move to pause interest rate hikes has bolstered high-flying growth names like Advanced Micro Devices and Micron. Both of these companies are among the best performers this year, with AMD up more than 27 percent and Micron up more than 23 percent. But that hasn’t stopped investors from jumping in, as many point to improving signs about the U.S. and global economy. “These days the semiconductor companies have their tentacles in everything,” CNBC’s Jim Cramer, host of “Mad Mon


The Federal Reserve’s move to pause interest rate hikes has bolstered high-flying growth names like Advanced Micro Devices and Micron. Both of these companies are among the best performers this year, with AMD up more than 27 percent and Micron up more than 23 percent. But that hasn’t stopped investors from jumping in, as many point to improving signs about the U.S. and global economy. “These days the semiconductor companies have their tentacles in everything,” CNBC’s Jim Cramer, host of “Mad Mon
Chipmakers are on pace for their best first quarter ever as fears about global economy ease Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: jr reed, michaela rehle
Keywords: news, cnbc, companies, companies, nvidia, economy, chipmakers, best, recent, ease, issued, quarter, micron, stocks, global, fears, intel, weight, semiconductor, investors, pace


Chipmakers are on pace for their best first quarter ever as fears about global economy ease

But, amid investors’ newfound optimism and more encouraging trends in the semiconductor industry, chip stocks have rallied more than 31 percent off of their recent low hit on Dec. 26. The Federal Reserve’s move to pause interest rate hikes has bolstered high-flying growth names like Advanced Micro Devices and Micron. Both of these companies are among the best performers this year, with AMD up more than 27 percent and Micron up more than 23 percent. Rising rates tend to hurt these stocks as investors adjust to the new environment.

The chipmakers’ rally has come despite a mixed set of earnings reports over the past several weeks. On Friday, Broadcom jumped more than 8 percent after reporting better-than-expected results and issued encouraging guidance for the rest of 2019. But its peers have not been as successful in assuaging investors’ concerns. In late January, Nvidia reported its first quarterly year-over-year revenue decline in five years, while Intel lowered its outlook for the year, citing ongoing trade concerns. Qorvo, meanwhile, issued guidance well below Wall Street expectations in its report in early February.

But that hasn’t stopped investors from jumping in, as many point to improving signs about the U.S. and global economy.

“These days the semiconductor companies have their tentacles in everything,” CNBC’s Jim Cramer, host of “Mad Money”, said this week. “Now, I often tell you that housing punches above its weight when we talk about the economy. If housing’s strong, then the strength might spread to banks and retail. These days, in the new global economy dominated by data, the semiconductor stocks punch well above their weight, just like housing.”

Nvidia’s $6.8 billion bid to buy Israeli chipmaker Mellanox has also helped renew investors’ faith in this beaten-down sector. Nvidia beat out several other potential suitors, including rival Intel, and some see the move as evidence that these companies are more aggressively pursuing new growth channels.

The deal, if approved, would mark Nvidia’s biggest ever acquisition as it pushes into the growing data center market. The stock has now surged more than 27 percent to start the year, but it still down 42 percent from its most recent peak in early October.


Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: jr reed, michaela rehle
Keywords: news, cnbc, companies, companies, nvidia, economy, chipmakers, best, recent, ease, issued, quarter, micron, stocks, global, fears, intel, weight, semiconductor, investors, pace


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Deutsche Bank and Commerzbank go public on merger talks

Deutsche Bank and Commerzbank confirmed on Sunday they were in talks about a merger, prompting labor union concerns about possible job losses and questions from analysts about the merits of a combination. “In light of arising opportunities, the management board of Deutsche Bank has decided to review strategic options,” Deutsche said in its statement. Christian Sewing, Deutsche Bank’s chief executive, told employees that Deutsche still aimed “to remain a global bank with a strong capital markets


Deutsche Bank and Commerzbank confirmed on Sunday they were in talks about a merger, prompting labor union concerns about possible job losses and questions from analysts about the merits of a combination. “In light of arising opportunities, the management board of Deutsche Bank has decided to review strategic options,” Deutsche said in its statement. Christian Sewing, Deutsche Bank’s chief executive, told employees that Deutsche still aimed “to remain a global bank with a strong capital markets
Deutsche Bank and Commerzbank go public on merger talks Cached Page below :
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Keywords: news, cnbc, companies, global, wants, merger, bank, commerzbank, public, following, deutsche, talks, management, german


Deutsche Bank and Commerzbank go public on merger talks

Deutsche Bank and Commerzbank confirmed on Sunday they were in talks about a merger, prompting labor union concerns about possible job losses and questions from analysts about the merits of a combination.

Germany’s two largest banks issued short statements following separate meetings of their management boards, a person with knowledge of the matter said, indicating a quickening of pace in the merger process, although both also warned that a deal was far from certain.

“In light of arising opportunities, the management board of Deutsche Bank has decided to review strategic options,” Deutsche said in its statement.

Christian Sewing, Deutsche Bank’s chief executive, told employees that Deutsche still aimed “to remain a global bank with a strong capital markets business… with a global network.”

Sewing said many factors could still prevent a merger and a Deutsche spokesman said the talks were expected to last some time. Commerzbank described the outcome as open.

However, formal disclosure of talks appeared to boost the chances of concluding a deal first floated in 2016 before the

banks opted to focus on restructuring.

The German government has pushed for a combination given concerns about the health of Deutsche, which has struggled to generate sustainable profits since the 2008 financial crisis.

The government, which holds a stake of more than 15 percent in Commerzbank following a bailout, wants a national banking champion to support its export-led economy, best known for cars and machine tools.

Berlin also wants to keep Commerzbank’s speciality —the funding of medium-sized companies, the backbone of the economy — in German hands.


Company: cnbc, Activity: cnbc, Date: 2019-03-17
Keywords: news, cnbc, companies, global, wants, merger, bank, commerzbank, public, following, deutsche, talks, management, german


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Japan’s central bank is now less optimistic about the economy

Factories across the globe slammed on the brakes last month as demand was hit by the U.S.-China trade war, slowing global growth and political uncertainty in Europe ahead of Britain’s departure from the European Union. The central bank also stuck to its view Japan’s economy is expanding moderately, but added a phrase that “exports and output have been affected by slowing overseas growth.” Factory output also posted the biggest decline in a year in that month, a sign slowing global demand was tak


Factories across the globe slammed on the brakes last month as demand was hit by the U.S.-China trade war, slowing global growth and political uncertainty in Europe ahead of Britain’s departure from the European Union. The central bank also stuck to its view Japan’s economy is expanding moderately, but added a phrase that “exports and output have been affected by slowing overseas growth.” Factory output also posted the biggest decline in a year in that month, a sign slowing global demand was tak
Japan’s central bank is now less optimistic about the economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: kim kyung-hoon
Keywords: news, cnbc, companies, output, slowing, boj, demand, bank, economy, central, japans, growth, overseas, view, exports, optimistic, global


Japan's central bank is now less optimistic about the economy

The Bank of Japan kept monetary policy steady on Friday but tempered its optimism that robust exports and factory output will underpin growth, a nod to heightened overseas risks that threaten to derail a fragile economic recovery.

Factories across the globe slammed on the brakes last month as demand was hit by the U.S.-China trade war, slowing global growth and political uncertainty in Europe ahead of Britain’s departure from the European Union.

In a nod to the increased risks, the BOJ cut its assessment on overseas economies to say they are showing signs of slowdown. It also revised down its view on exports and output.

“Exports have shown some weaknesses recently,” the central bank said in a statement on its policy decision, offering a bleaker view than in January when it said they were increasing as a trend.

At a two-day rate review ending on Friday, the BOJ maintained a pledge to guide short-term interest rates at minus 0.1 percent and 10-year government bond yields around zero percent. The widely expected decision was made by a 7-2 vote.

The central bank also stuck to its view Japan’s economy is expanding moderately, but added a phrase that “exports and output have been affected by slowing overseas growth.” In January, it said only that the economy was expanding moderately.

“The sharp deterioration in exports and industrial production should be a serious source of concern for the BOJ. I think the BOJ is doing some thought experiments about what they can do,” said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management.

“For now you can still make the argument that current economic weakness is temporary, but this is becoming an increasingly closer call. The next three months are critical.”

Japan’s exports posted their biggest decline in more than two years in January as China-bound shipments tumbled. Factory output also posted the biggest decline in a year in that month, a sign slowing global demand was taking a toll on Japan Inc.

Many in the BOJ expect Japan’s economy to emerge from the current soft patch in the second half of this year, when Beijing’s stimulus plans could lift Chinese demand and underpin global growth, sources have told Reuters.

But there is uncertainty on how quickly global demand could rebound, adding to woes for Japanese companies already feeling the pinch from slowing Chinese demand, analysts say.


Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: kim kyung-hoon
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Electric vehicles could cost the auto industry millions of jobs, a top analyst says

The electric car has become so popular that it could cost 3 million auto industry jobs in the next three to five years, according to a prominent analyst. “As auto companies shift production towards electric vehicles, we expect increased pressure on a 100-year-old auto ecosystem supporting millions of jobs globally…representing a risk to labor relations, earnings and the balance sheet,” he said. He recently has begun highlighting how electric vehicle start-ups are challenging automakers by transf


The electric car has become so popular that it could cost 3 million auto industry jobs in the next three to five years, according to a prominent analyst. “As auto companies shift production towards electric vehicles, we expect increased pressure on a 100-year-old auto ecosystem supporting millions of jobs globally…representing a risk to labor relations, earnings and the balance sheet,” he said. He recently has begun highlighting how electric vehicle start-ups are challenging automakers by transf
Electric vehicles could cost the auto industry millions of jobs, a top analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: michael sheetz
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Electric vehicles could cost the auto industry millions of jobs, a top analyst says

The electric car has become so popular that it could cost 3 million auto industry jobs in the next three to five years, according to a prominent analyst.

Morgan Stanley’s Adam Jonas said in a research note Friday that the auto industry is going to see serious, widespread changes to its labor force. Jonas said electric vehicle production will lead to heavy workforce cuts as companies like Elon Musk’s Tesla push big automakers to make them part of the mainstream.

“As auto companies shift production towards electric vehicles, we expect increased pressure on a 100-year-old auto ecosystem supporting millions of jobs globally…representing a risk to labor relations, earnings and the balance sheet,” he said.

Jonas earned a wide following on Wall Street for his early calls on Tesla, as well as his thoughts on electric vehicles. He recently has begun highlighting how electric vehicle start-ups are challenging automakers by transforming the way cars are made.

Morgan Stanley estimates that the global auto supply chain employs “in the range of 11 million people.” Jonas pointed to recent statements by VW Group CEO Herbert Diess, who said it takes 30 percent less labor to produce an electric vehicle than a similarly priced car that has the traditional internal combustion engine. This would result in a headcount cut of more than 3 million workers from the global auto industry.

But that number could increase, Jonas said.

Jonas said tech start-ups like Tesla and Rivian could build electric vehicles at “a 50 percent reduction in direct labor … or more.” That would reduce the global auto supply chain labor force even further. Even at just a 30 percent cut, Jonas estimates the labor force reduction would cost automakers “collectively and over time upwards of” $60 billion.

Maintenance and servicing for electric vehicles is less expensive than traditional cars, another consideration in terms of the labor force needed as the switch to the newer cars continues.


Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: michael sheetz
Keywords: news, cnbc, companies, millions, jobs, force, global, jonas, industry, auto, electric, labor, analyst, million, tesla, cost, vehicles, vehicle


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