Trump says GDP would be near 4% and the Dow would be up to 10,000 points higher if it weren’t for the Fed

President Donald Trump on Wednesday said that the U.S. economy’s GDP growth would have been closer to 4% if it weren’t for the lingering effect of Federal Reserve rate hikes. We had things happen that are very unusual to happen,” Trump told CNBC’s Joe Kernen in an interview from the World Economic Forum in Davos, Switzerland. “Now, with all of that, had we not done the big raise on interest, I think we would have been close to 4%,” Trump said. “And I – I could see 5,000 to 10,000 points more on


President Donald Trump on Wednesday said that the U.S. economy’s GDP growth would have been closer to 4% if it weren’t for the lingering effect of Federal Reserve rate hikes.
We had things happen that are very unusual to happen,” Trump told CNBC’s Joe Kernen in an interview from the World Economic Forum in Davos, Switzerland.
“Now, with all of that, had we not done the big raise on interest, I think we would have been close to 4%,” Trump said.
“And I – I could see 5,000 to 10,000 points more on
Trump says GDP would be near 4% and the Dow would be up to 10,000 points higher if it weren’t for the Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: mike calia
Keywords: news, cnbc, companies, higher, fed, dow, 10000, things, unusual, werent, rate, near, points, trump, raised, happen, big, president, gdp, world


Trump says GDP would be near 4% and the Dow would be up to 10,000 points higher if it weren't for the Fed

President Donald Trump on Wednesday said that the U.S. economy’s GDP growth would have been closer to 4% if it weren’t for the lingering effect of Federal Reserve rate hikes.

“That was a big blip that should not have taken place. It should not have happened. But it’s one of those things. But we had Boeing. We had the big strike with General Motors. We had things happen that are very unusual to happen,” Trump told CNBC’s Joe Kernen in an interview from the World Economic Forum in Davos, Switzerland.

The president also suggested that the stock market would be even higher than its already record-setting highs if the Fed hadn’t raised rates so quickly before cutting them three times during 2019.

“Now, with all of that, had we not done the big raise on interest, I think we would have been close to 4%,” Trump said. “And I – I could see 5,000 to 10,000 points more on the Dow. But that was a killer when they raised the rate. It was just a big mistake.”


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: mike calia
Keywords: news, cnbc, companies, higher, fed, dow, 10000, things, unusual, werent, rate, near, points, trump, raised, happen, big, president, gdp, world


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Patriotic Millionaires’ letter to Davos calls for ‘higher and fairer’ taxes on the global elite

DAVOS, Switzerland –The Patriotic Millionaires, a group of wealthy people who support hiking taxes on the rich, are taking their message global at the World Economic Forum. In a letter the group plans to release Wednesday, the Patriotic Millionaires will urge international tax reform. The Patriotic Millionaires was founded in 2010 and is chaired by former BlackRock executive Morris Pearl. The global corporate tax has essentially halved in the past 35 years. While Shalchi said he’s supportive of


DAVOS, Switzerland –The Patriotic Millionaires, a group of wealthy people who support hiking taxes on the rich, are taking their message global at the World Economic Forum.
In a letter the group plans to release Wednesday, the Patriotic Millionaires will urge international tax reform.
The Patriotic Millionaires was founded in 2010 and is chaired by former BlackRock executive Morris Pearl.
The global corporate tax has essentially halved in the past 35 years.
While Shalchi said he’s supportive of
Patriotic Millionaires’ letter to Davos calls for ‘higher and fairer’ taxes on the global elite Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: lauren hirsch
Keywords: news, cnbc, companies, davos, calls, higher, group, fairer, tax, payne, letter, wealthy, elite, patriotic, taxes, millionaires, corporate, global


Patriotic Millionaires' letter to Davos calls for 'higher and fairer' taxes on the global elite

DAVOS, Switzerland –The Patriotic Millionaires, a group of wealthy people who support hiking taxes on the rich, are taking their message global at the World Economic Forum.

In a letter the group plans to release Wednesday, the Patriotic Millionaires will urge international tax reform. Previously, the organization has focused its message on the United States, where it has lobbied in favor of a millionaire tax and against tax loopholes for investment funds.

The letter, which will be released under the moniker “Millionaires Against Pitchforks,” warns that tax evasion has “reached epidemic proportions” and contributed to “extreme, destabilizing inequality.” It is timed to land as millionaires and billionaires gather here for the World Economic Forum – which the group’s president, Erica Payne, calls “one of the most obnoxious displays of privilege that is found on the world stage.”

“There are two kinds of wealthy people in the world: those who prefer taxes and those who prefer pitchforks. We, the undersigned, prefer taxes,” the letter says. It is signed by 121 people, including Disney heiress Abigail Disney, Celtel-founder Mo Ibrahim, former Unilever CEO Paul Polman and “Love, Actually” filmmaker Richard Curtis.

The letter cites a 2018 IMF report that found that $12 trillion of multinational investments is “completely artificial” and sitting in empty corporate shells across the globe. Meanwhile, the world’s roughly 2,000 billionaires have more wealth than 60% of the planet’s population, researchers at Oxfam announced earlier this week. They warned that “extreme wealth is a sign of a failing economic system.”

The Patriotic Millionaires argue that taxes are the solution.

“Taxes are the best and only appropriate way to ensure adequate investment in the things our societies need. Individuals who reject this truth pose a dual threat both to the climate and to democracy itself,” says the letter, which was signed by Disney, Ibrahim, Polman, Curtis and others.

The group is urging tax reform for both individual and corporate taxes.

The Patriotic Millionaires was founded in 2010 and is chaired by former BlackRock executive Morris Pearl. Until now, its focus has been exclusively in the U.S., where it has run publicity campaigns and lobbied lawmakers to support its causes. The group stood by then-President Barack Obama’s side for his 2012 Tax Day address. Last month, the group unveiled its first spate of endorsements for 2020’s congressional elections.

But the group believes the global tax landscape is so fraught it must expand is mission overseas, Payne said. A number of the group’s signatories, like Polman, are not members of the U.S. organization. Payne said it took months to find global millionaires and billionaires to support its cause.

“The number of wealthy people concerned with their fellow humans is minuscule. That is true domestically and it appears to also be true internationally,” Payne said.

Djaffar Shalchi, an Iranian-Danish businessman who helped the Patriotic Millionaires build out their European network, said many requests for signatures were left simply left unanswered.

“The feedback was they didn’t want to sign it … most rich people are scared to sign something like that,” Shalchi said.

But if the letter resonates as the group hopes, the Patriotic Millionaires will look for more global allies, and jump more heartily into the debate, Payne said.

As they do, they will be joining a corporate tax debate that has been reverberating across the international stage for years. Globalization has made it easier for companies to seek shelter in countries with lower corporate tax rates. That challenge is heightened by the rising tech giants like Facebook, Amazon and Apple that render taxing based on physical presence an antiquated notion. The global corporate tax has essentially halved in the past 35 years. It stood at 49% in 1985 and is 24% today, according to the IMF.

Former IMF Chair Christine Lagarde has called existing global tax rules “fundamentally out of date.” Apple CEO Tim Cook said earlier this week the global tax system needs to be “rehauled.” The Organization for Economic Cooperation and Development is working to develop a framework tax solution for the wealthy countries that make up its membership, including Australia, the U.S., France and Ireland.

But efforts to create change have been stymied by diplomatic tensions. A frequently discussed potential solution is the imposition of a “digital tax” through which countries can tax an internet company doing business in its region. With most of the world’s largest technology companies based in the U.S, though, there are fears such a tax offers other nations a chance to prosper from the fruits of these American firms’ success.

As such, the U.S. has been sparring with France, Italy and Britain over threats of a digital tax. The debate has also clouded the negotiation of an OECD framework. Steven Mnuchin earlier this month informed OECD Secretary-General Angel Gurría that he has concerns about mandatory digital taxes being included as part of its global tax solution. President Donald Trump and French President Emmanuel Macron, meanwhile, called a truce in the matter, Reuters reported.

While Shalchi said he’s supportive of any efforts to close global tax loopholes, he said there may be an easier approach.

“We’re just complicating with 10 different kinds of taxes. They can tax the corporations, tax the stock markets – so on and so on – let’s just make it simple: let’s just tax the wealthy,” he said. “But we are talking about the 1% here, come on.”

Read the letter:


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: lauren hirsch
Keywords: news, cnbc, companies, davos, calls, higher, group, fairer, tax, payne, letter, wealthy, elite, patriotic, taxes, millionaires, corporate, global


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Live stock market updates: S&P 500 record, mystery housing move, coronavirus, chips jump

—Domm10:21 am: US home sales numbers help sentimentU.S. home sales easily beat expectations, jumping to a nearly 2-year high. However, Piper Sandler said in a note to clients that higher than expected expenses would put pressure on the stock and shares are down roughly 3.3%. S&P 500 and Nasdaq hit recordsThe S&P 500 added about 0.3% and touched a new intraday record. -Melloy9:03 am: Tesla set to top $100 billion at the openShares of Tesla rose about 5% in premarket trading. If the gains hold, th


—Domm10:21 am: US home sales numbers help sentimentU.S. home sales easily beat expectations, jumping to a nearly 2-year high.
However, Piper Sandler said in a note to clients that higher than expected expenses would put pressure on the stock and shares are down roughly 3.3%.
S&P 500 and Nasdaq hit recordsThe S&P 500 added about 0.3% and touched a new intraday record.
-Melloy9:03 am: Tesla set to top $100 billion at the openShares of Tesla rose about 5% in premarket trading.
If the gains hold, th
Live stock market updates: S&P 500 record, mystery housing move, coronavirus, chips jump Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: cnbccom staff
Keywords: news, cnbc, companies, stock, live, housing, coronavirus, level, record, netflix, tesla, mystery, market, jump, stocks, trading, bank, shares, higher, earnings, updates


Live stock market updates: S&P 500 record, mystery housing move, coronavirus, chips jump

This is a live blog. Check back for updates.

10:28 am: Homebuilders started to pop even before existing homes data hit

Homebuilder stocks and the SPDR S&P Homebuilders ETF all moved to highs after the 10 a.m. ET report of better than expected existing home sales. But the XHB, Lennar, DR Horton, Pulte, KB Home all kicked into gear and started moving higher in the minutes ahead of the 10 a.m. release. Some gains were given back after peaking, after the report. “They’ve been having pretty good news. I think it’s just carry through,” said Art Cashin, director of floor operations at UBS. Home sales in December totaled 5.54 million, vs. 5.43 million expected. It’s the highest level since February 2018. The clincher is the supply of homes for resale at 3 months, a record low, and that in itself is enough to put a lift in the homebuilders .

Recent housing data has been very strong. —Domm

10:21 am: US home sales numbers help sentiment

U.S. home sales easily beat expectations, jumping to a nearly 2-year high. U.S. home sales increased 3.6% in December to a seasonally adjusted 5.54 million. Economists polled by Reuters expected a gain of 1.3% to 5.43 million units sold. The report from the National Association of Realtors is the latest sign the U.S. housing market is getting a boost from the three rate cuts implemented by the Federal Reserve last year. Data released last week showed housing stars surged last month to a 13-year high. Homebuilders Toll Brothers and Lennar were higher. —Imbert

10:16 am: Regional banks among the few big losers Wednesday

Regional banks are the losers in early trading, with Zions Bancorporation and Northern Trust suffering two of the largest declines. Zions was down 5.3% after reporting earnings for the fourth-quarter Tuesday night. The Utah-based bank holding company reported a decline in its loan balance, and Raymond James lowered its price target on the stock to $59 per share from $61 per share while lowering its earnings estimate. Zions was also downgraded to neutral from buy at Bank of America, according to FactSet. Northern Trust reported its fourth-quarter results Wednesday morning, and its $1.56 billion in revenue was above the $1.55 billion expected, according to Refinitiv. However, Piper Sandler said in a note to clients that higher than expected expenses would put pressure on the stock and shares are down roughly 3.3%. – Pound

10:11 am: Chip stock ETF hits all-time high

The VanEck Vectors Semiconductor ETF (SMH) hit a record led by Teradyne, Lam Research, Skyworks, and Micron

Tearadyne trading at multi-year highs back to July 2000

Skyworks is trading at all-time high levels back to the creation of the company after the merger of Alpha Industries and Conexant in June, 2002

Micron is trading at its highest level since June 2018 -Francolla

9:56 am: Pandemic fears drive 10-year Treasury yield to important test

The 10-year Treasury yield has been resting at 1.76%, after dropping to that level as the world worried about the new Chinese coronavirus Tuesday. Risk markets are rallying, and yields are higher Wednesday, but the 10-year still hovers near Tuesday’s lows, a key level on the charts. “That 1.76 level has provided support at a few different moments in January. It also corresponds to the bottom of an opening gap, back to some of the volatility around the Iranian tensions,” said Jon Hill of BMO. “But the intraday low of Jan. 8 was 1.70. That to me is the defacto range bound.” He said it’s now testing resistance for further rallies in duration. Yields move lower when bond prices rise. Treasurys were expected to trade quietly this week due to the light data calendar, lack of new supply, and dearth of Fed speak ahead of next week’s FOMC meeting. — Domm

9:51 am: Coronavirus death toll rises

CNBC’s Eunice Yoon reported Chinese state TV confirmed the coronavirus has killed 17 people with confirmed cases climbing to 444 in total. The virus stemmed from Wuhan, China, less than a week before Lunar New Year, when millions of Chinese travel at home and abroad. Related stocks were still higher, however. Wynn Resorts was up 0.4% and United Airlines added 0.6%. —Li

9:45 am: Bank of America’s retail clients bought stocks for the first time in eight weeks

Bank of America said its retail clients were net buyers of stocks last week after an eight-week selling streak. The S&P 500 gained 2% in the week ending Jan. 17, hitting new records. The buying was largely driven by inflows into exchange-traded funds, the bank noted. Meanwhile, buybacks by Bank of America’s corporate clients picked up as earnings season kicked off and the amount has been consistent with the historical trends, the bank said. Its hedge funds and institutional clients, however, continued to sell for four and three weeks, respectively. — Li

9:30 am: Stocks rise at the open. S&P 500 and Nasdaq hit records

The S&P 500 added about 0.3% and touched a new intraday record. The Nasdaq Composite also hit a record. Shares of Tesla jumped 4%. IBM added more than 3% and was the biggest gainer in the S&P 500. Netflix, meanwhile, was lower, falling almost 2%. -Melloy

9:03 am: Tesla set to top $100 billion at the open

Shares of Tesla rose about 5% in premarket trading. If the gains hold, the company’s market value would climb to more than $103 billion at the open of trading. That’s a closely watched level for the electric automaker’s stock, as CEO Elon Musk would land the first of a possibly massive payout if Tesla can stay above $100 billion in value on both a 30-day and six-month trailing average. -Sheetz

8:59 am: Vertical Research Partners is ‘throwing in the towel’ on Boeing and downgrading the stock to a hold

The fallout from Boeing’s 737 Max keeps getting worse. On Tuesday the company said it doesn’t expect regulators to sign off on the jet until June or July, which is later than some, including Vertical Research’s Robert Stallard, were predicting. On Wednesday Stallard downgraded the stock to a hold and lowered his target to $294, saying the “ramifications” of the grounded jet have “yet to reverberate.” He slashed his estimates for 2019-2022, and said the company will likely halt buybacks until 2022. With shares of Boeing down nearly 17% in the last six months, Stallard acknowledged that the call is belated. -Stevens

8:57 am: Barclays upbeat on coming earnings of top tech stocks

The firm’s internet analyst Ross Sandler said he expects “management teams to sound upbeat” when technology companies reporting fourth quarter results soon. Sandler noted continuing strength of Alphabet and Amazon, saying to buy any weakness in the stocks as “large caps likely see growth accelerate in 1Q20.” The Barclays analyst also called out its three best picks for investors looking to buy before tech earnings: Snap, Facebook and Uber. – Sheetz

8:54 am: Wedbush expects Tesla earnings “will not disappoint”

Wedbush analyst Dan Ives raised his price target on shares of Tesla to $550 from $370, saying “we believe Musk & Co. will not disappoint” when the electric automaker reports earnings on Jan. 29. Ives’ note was incrementally more optimistic about Tesla’s outlook in China, as he updated the potential for those operations to “at least $100” a share from “$75 to $100″ two weeks ago. Wedbush has a neutral rating on Tesla. -Sheetz

8:39 am: Coronavirus-related names are rebounding

Travel and hotel stocks rebounded on Wednesday, after falling Tuesday on fears that the coronavirus outbreak in China would dent international travel. Shares of casino and hotel companies Wynn Resorts and Las Vegas Sands gained nearly 1% each, after falling 6% and 5%, respectively on Tuesday. United Airlines jumped nearly 1%, American Airlines rose more than 1% and Delta Air and Southwest all gained slightly in premarket trading. -Fitzgerald

8:38 am: Investors using better-than-expected earnings to take profits in individual stocks

Wall Street may be using the earnings season to take profits off the table after the market’s stunning run to record highs this past one year. Data compiled by Bespoke Investment Group shows stocks have opened higher by an average of 0.62% after a company reports quarterly earnings. However, those stocks decline by an average of 0.56% into market close.”We’re seeing investors use earnings as a reason to lighten up a bit,” Bespoke said in a tweet.—Imbert

8:33 am: Netflix rebounds as Wall Street analysts shrug off subscriber miss

Netflix was the first of the so-called FANG stocks to report fourth-quarter results. The streaming giant beat on the top and bottom line, but gave disappointing guidance and posted a miss on domestic subscriber growth. Wall Street analysts largely looked past the weakness and believe Netflix is on the right track to profitability. Goldman Sachs said the company’s content investments, distribution partnerships and global positioning should drive subscriber growth “significantly above consensus expectations.” Bank of America expects Netflix to be “increasingly dominant overseas” in the next year. Credit Suisse said the set-up is “quite favorable for Netflix heading into 2020,” and the subscriber guidance looks “conservative.” Shares of Netflix rose more than 1% in premarket trading on Wednesday, after losing as much as 2% Tuesday after the bell following the earnings report.Click here to read more about what every major analyst had to say about Netflix’s latest earnings. -Li

8:30 am: Dow set to rise


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: cnbccom staff
Keywords: news, cnbc, companies, stock, live, housing, coronavirus, level, record, netflix, tesla, mystery, market, jump, stocks, trading, bank, shares, higher, earnings, updates


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Tesla short sellers could help Elon Musk score a payday worth hundreds of millions

Aly Song | ReutersThe very short sellers that Elon Musk skewers frequently for betting against Tesla could ironically help the eccentric chief executive score a big payday. Nearly a fifth of Tesla shares available for trading are sold short, according to S3 Partners. Two years ago Tesla’s board agreed to a compensation plan for Musk based on Tesla stock milestones. If a stock price instead trends higher, short sellers are forced to buy back the equity at a higher price in order to cut their moun


Aly Song | ReutersThe very short sellers that Elon Musk skewers frequently for betting against Tesla could ironically help the eccentric chief executive score a big payday.
Nearly a fifth of Tesla shares available for trading are sold short, according to S3 Partners.
Two years ago Tesla’s board agreed to a compensation plan for Musk based on Tesla stock milestones.
If a stock price instead trends higher, short sellers are forced to buy back the equity at a higher price in order to cut their moun
Tesla short sellers could help Elon Musk score a payday worth hundreds of millions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: michael sheetz
Keywords: news, cnbc, companies, shares, score, teslas, stock, shorts, sellers, tesla, musk, higher, ives, short, payday, millions, hundreds, help, worth


Tesla short sellers could help Elon Musk score a payday worth hundreds of millions

Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai, China January 7, 2020. Aly Song | Reuters

The very short sellers that Elon Musk skewers frequently for betting against Tesla could ironically help the eccentric chief executive score a big payday. Nearly a fifth of Tesla shares available for trading are sold short, according to S3 Partners. As the shares hit record highs on what seems like a daily basis, more and more of those shorts are forced to capitulate and buy the stock back, fueling the run even further. This so-called short squeeze has lifted Tesla’s stock past a key benchmark: The market value of the company is more than $100 billion. That’s a closely watched level because, if Tesla’s market cap stays above $100 billion on both a 30-day and six-month trailing average, Musk will earn the first part of a potentially enormous compensation package. Two years ago Tesla’s board agreed to a compensation plan for Musk based on Tesla stock milestones. If the shares continue to rally in the next decade, Musk could earn options worth more than $55 billion.

Short sellers borrow shares from an investment bank and then sell them. Their hope is that the stock will go down and then they can buy them back at lower prices and return them to the investment bank, turning a profit on the difference. But the opposite is happening with Tesla. If a stock price instead trends higher, short sellers are forced to buy back the equity at a higher price in order to cut their mounting losses. If enough short sellers buy in tandem, it can create higher demand and itself drive the equity price even higher, aka a short squeeze.

Musk ‘joy ride’

To be sure, there are fundamental reasons behind the surge. Most analysts point to Tesla’s record vehicle production, new factory in China or stabilizing financials for driving the stock higher. But part of the name’s rally is coming from shorts forced to “cover” their positions, analysts and traders said. “The pain trade for the shorts has been a joy ride for Musk,” said Wedbush analyst Dan Ives. Ives, like other analysts, thinks an inflection in demand for electric vehicles has been the major catalyst for Tesla. The stock has had “not just a short squeeze but also fundamental buying,” Ives said. “I’ve heard from even some of the most bearish, doomsday investors on this and the China thesis has come out of left field much quicker than expected,” Ives said. “The pain trade for the shorts is too hard to stomach, as they can’t be short going into earnings and with a China inflection point.”


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: michael sheetz
Keywords: news, cnbc, companies, shares, score, teslas, stock, shorts, sellers, tesla, musk, higher, ives, short, payday, millions, hundreds, help, worth


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US futures point to higher open

U.S. stock index futures futures bounced Wednesday as investors monitor a range of corporate earnings, along with developments concerning the spread of a deadly virus in China. At around 5:00 a.m. ET, Dow futures rose 77 points and indicated an implied positive open of more than 99 points. Futures on the S&P 500 and Nasdaq were also higher. China on Wednesday unveiled measures to rein in the deadly Wuhan coronavirus, tempering fears of a global pandemic which sent markets tumbling on Tuesday.


U.S. stock index futures futures bounced Wednesday as investors monitor a range of corporate earnings, along with developments concerning the spread of a deadly virus in China.
At around 5:00 a.m.
ET, Dow futures rose 77 points and indicated an implied positive open of more than 99 points.
Futures on the S&P 500 and Nasdaq were also higher.
China on Wednesday unveiled measures to rein in the deadly Wuhan coronavirus, tempering fears of a global pandemic which sent markets tumbling on Tuesday.
US futures point to higher open Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: elliot smith
Keywords: news, cnbc, companies, point, open, wuhan, 500, unveiled, tumbling, points, virus, washington, higher, tuesdaypublic, deadly, futures


US futures point to higher open

U.S. stock index futures futures bounced Wednesday as investors monitor a range of corporate earnings, along with developments concerning the spread of a deadly virus in China.

At around 5:00 a.m. ET, Dow futures rose 77 points and indicated an implied positive open of more than 99 points. Futures on the S&P 500 and Nasdaq were also higher.

China on Wednesday unveiled measures to rein in the deadly Wuhan coronavirus, tempering fears of a global pandemic which sent markets tumbling on Tuesday.

Public health officials have confirmed that the first U.S. case has been diagnosed in Washington State, but the male patient “poses little risk” to the public, the Centers for Disease Control and Prevention said Tuesday.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: elliot smith
Keywords: news, cnbc, companies, point, open, wuhan, 500, unveiled, tumbling, points, virus, washington, higher, tuesdaypublic, deadly, futures


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The 2020 election has supplanted the trade war as the biggest risk for stocks, survey shows

Professional investors spent most of 2019 worrying about the U.S.-China trade war. As a new year has dawned, so has the focus of most concern. The first Bank of America Global Research fund manager survey of 2020 shows the highest risk is now the looming presidential election, according to the 249 panelists surveyed. The survey, widely followed on Wall Street, found that 29% said they consider politics the biggest potentially disruptive issue in the year ahead. Since June 2018, the U.S-China tar


Professional investors spent most of 2019 worrying about the U.S.-China trade war.
As a new year has dawned, so has the focus of most concern.
The first Bank of America Global Research fund manager survey of 2020 shows the highest risk is now the looming presidential election, according to the 249 panelists surveyed.
The survey, widely followed on Wall Street, found that 29% said they consider politics the biggest potentially disruptive issue in the year ahead.
Since June 2018, the U.S-China tar
The 2020 election has supplanted the trade war as the biggest risk for stocks, survey shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: jeff cox
Keywords: news, cnbc, companies, election, biggest, survey, 2020, risk, higher, investors, trade, global, wall, stocks, market, uschina, concern, shows, supplanted, war


The 2020 election has supplanted the trade war as the biggest risk for stocks, survey shows

Professional investors spent most of 2019 worrying about the U.S.-China trade war. As a new year has dawned, so has the focus of most concern. The first Bank of America Global Research fund manager survey of 2020 shows the highest risk is now the looming presidential election, according to the 249 panelists surveyed. The survey, widely followed on Wall Street, found that 29% said they consider politics the biggest potentially disruptive issue in the year ahead. Since June 2018, the U.S-China tariff battle has been most prominent for the market pros. However, with the two sides agreeing to the first phase of a trade agreement and negotiations on the next stage expected to begin soon, concern has abated on Wall Street.

“Investors are bullish but not euphoric,” Michael Hartnett, BofA’s chief investment strategist, said in a statement. The survey also showed that cash levels have held steady while allocations to global stocks inched higher and sentiment about the global economy has improved to where 36% now expect higher growth over the next year, the best level since February 2018. However, investors remain nervous about the election, which will pit a yet-to-be determined Democratic candidate against President Donald Trump, who has overseen a market that has surged 63% since his election, as measured by the Dow Jones Industrial Average.

Stock market has prospered


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: jeff cox
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Minerd: Don’t see any reason why we can’t keep pushing asset prices higher

Minerd: Don’t see any reason why we can’t keep pushing asset prices higherScott Minerd, global chief investment officer at Guggenheim Partners, joins CNBC’s “Squawk Box” team at the World Economic Forum in Davos, Switzerland.


Minerd: Don’t see any reason why we can’t keep pushing asset prices higherScott Minerd, global chief investment officer at Guggenheim Partners, joins CNBC’s “Squawk Box” team at the World Economic Forum in Davos, Switzerland.
Minerd: Don’t see any reason why we can’t keep pushing asset prices higher Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21
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Minerd: Don't see any reason why we can't keep pushing asset prices higher

Minerd: Don’t see any reason why we can’t keep pushing asset prices higher

Scott Minerd, global chief investment officer at Guggenheim Partners, joins CNBC’s “Squawk Box” team at the World Economic Forum in Davos, Switzerland.


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A theory on who’s doing all the buying that’s pushing stocks higher and higher

The largest group of U.S. institutional investors are the state and municipal pension plans. An increase of a few percentage points in long-only equity allocation would certainly help drive stocks higher. Unfortunately, my theory about public plans was unilaterally incorrect; state pension directors are doing the exact opposite and continue to reduce their domestic equity exposure. Sovereign funds, another well-heeled cohort, have been increasing their private equity allocations, generally at th


The largest group of U.S. institutional investors are the state and municipal pension plans.
An increase of a few percentage points in long-only equity allocation would certainly help drive stocks higher.
Unfortunately, my theory about public plans was unilaterally incorrect; state pension directors are doing the exact opposite and continue to reduce their domestic equity exposure.
Sovereign funds, another well-heeled cohort, have been increasing their private equity allocations, generally at th
A theory on who’s doing all the buying that’s pushing stocks higher and higher Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-18  Authors: karen firestone
Keywords: news, cnbc, companies, pushing, theory, funds, buying, whos, allocation, doing, thats, record, stocks, equity, private, trillion, pension, plans, public, state, higher


A theory on who's doing all the buying that's pushing stocks higher and higher

The insistent refrain “new all-time record” has been played so often recently that it sounds like a broken record. For readers born after the age of vinyl, the term refers to when the needle gets stuck in a groove, repeating a phrase over and over until you either move the arm or throw the record at a wall in disgust. Given a series of new highs for the S&P 500, the Dow Jones Industrial Average and the Nasdaq, the obvious question is who is doing all this buying? My first assumption was that investors, whose portfolios lagged because of their lack of U.S. equity exposure through a triumphant 31.5% year for the S&P, might be jumping on board. The largest group of U.S. institutional investors are the state and municipal pension plans. To get a sense their scale, consider that the California and New York state funds contain close to $600 billion combined, with the nationwide system comprising over $4 trillion in assets. An increase of a few percentage points in long-only equity allocation would certainly help drive stocks higher. Unfortunately, my theory about public plans was unilaterally incorrect; state pension directors are doing the exact opposite and continue to reduce their domestic equity exposure. According to several contacts within government pension offices, the typical U.S. public plan has been reducing its allocation to long-only U.S. equity for several years, shifting primarily toward private equity. Calpers, for example, carries a 24% weight in domestic equity while the state of Massachusetts was in the teens as of the last reporting period.

Retail traders?

With institutions, including public plans, major endowments, and mutual funds net sellers of U.S. equity, what other groups could account for the steady advance? Retail clients, accounting for 20% or $7 trillion of the total U.S. market ownership, added to their stock portfolios in 2019. According to a Goldman Sachs study, households now have a comparable equity allocation to 2007, only surpassed by the dotcom bubble of 2000, implying that retail buying is an unlikely driver of the current move. Sovereign funds, another well-heeled cohort, have been increasing their private equity allocations, generally at the expense of equities. That leaves two other groups of buyers capable of pushing the averages higher: public corporations themselves and long-short hedge funds. The shrinking of the U.S. equity supply, including buyouts to private equity firms, acquisitions, and share repurchases, is acknowledged as a significant factor contributing to the rise in equity prices. This should continue in 2020, but at an anticipated rate in the $500 billion range, or around half of the 2019 total.

Hedge funds?


Company: cnbc, Activity: cnbc, Date: 2020-01-18  Authors: karen firestone
Keywords: news, cnbc, companies, pushing, theory, funds, buying, whos, allocation, doing, thats, record, stocks, equity, private, trillion, pension, plans, public, state, higher


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Asia shares set to trade higher with all eyes on upcoming China GDP data

Markets in Asia are set to trade higher on Friday, as traders wait for the release of China’s gross domestic product (GDP) numbers. Futures pointed to a higher open for Japan’s Nikkei 225 as compared with the index’s last close. All eyes will be on the release of China’s GDP data for the fourth quarter on Friday. Data earlier this week also showed that the country’s exports rose for the first time in five months in December, and its imports beat estimates. The offshore yuan traded at 6.8765, as


Markets in Asia are set to trade higher on Friday, as traders wait for the release of China’s gross domestic product (GDP) numbers.
Futures pointed to a higher open for Japan’s Nikkei 225 as compared with the index’s last close.
All eyes will be on the release of China’s GDP data for the fourth quarter on Friday.
Data earlier this week also showed that the country’s exports rose for the first time in five months in December, and its imports beat estimates.
The offshore yuan traded at 6.8765, as
Asia shares set to trade higher with all eyes on upcoming China GDP data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: weizhen tan
Keywords: news, cnbc, companies, china, seen, higher, yuan, gdp, earlier, eyes, release, set, upcoming, data, week, asia, quarter, shares, trade, growth


Asia shares set to trade higher with all eyes on upcoming China GDP data

Markets in Asia are set to trade higher on Friday, as traders wait for the release of China’s gross domestic product (GDP) numbers.

Australia’s S&P/ASX 200 jumped 0.64% in early trade. Futures pointed to a higher open for Japan’s Nikkei 225 as compared with the index’s last close.

All eyes will be on the release of China’s GDP data for the fourth quarter on Friday. A Reuters poll predicted 6% growth from a year earlier. That would be unchanged from the pace in the third quarter, which was believed to be its slowest GDP gain in at least 27½ years.

China’s growth has been hit by the trade dispute with the U.S., among other factors. But both giants signed a “phase one” deal this week, which included some tariff relief. Data earlier this week also showed that the country’s exports rose for the first time in five months in December, and its imports beat estimates.

Ahead of the numbers, the Chinese yuan, which has been appreciating amid trade optimism, was stronger again. The offshore yuan traded at 6.8765, as compared to a high of 6.8945 seen earlier on Thursday. The onshore yuan was last at 6.8769, versus the 6.8899 seen on Wednesday.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: weizhen tan
Keywords: news, cnbc, companies, china, seen, higher, yuan, gdp, earlier, eyes, release, set, upcoming, data, week, asia, quarter, shares, trade, growth


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Treasury yields move higher as investors await economic data

U.S. government debt prices were lower Friday morning, as investors await a fresh batch of economic data. ET, the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.8285%, while the yield on the 30-year Treasury bond was also higher at around 2.2972%. Industrial production figures for December, capacity utilization data for December, a preliminary reading of consumer sentiment for January and job vacancies data for November will all follow slightly later in t


U.S. government debt prices were lower Friday morning, as investors await a fresh batch of economic data.
ET, the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.8285%, while the yield on the 30-year Treasury bond was also higher at around 2.2972%.
Industrial production figures for December, capacity utilization data for December, a preliminary reading of consumer sentiment for January and job vacancies data for November will all follow slightly later in t
Treasury yields move higher as investors await economic data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: sam meredith
Keywords: news, cnbc, companies, worlds, data, yields, higher, economy, fed, treasury, investors, economic, figures, 2019, await


Treasury yields move higher as investors await economic data

U.S. government debt prices were lower Friday morning, as investors await a fresh batch of economic data.

At 2:45 a.m. ET, the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.8285%, while the yield on the 30-year Treasury bond was also higher at around 2.2972%.

Market focus is largely attuned to economic data, after China reported on Friday that its economy expanded by 6.1% in 2019, even amid a trade dispute with the U.S.

Analysts polled by Reuters had expected the world’s second-largest economy to have grown 6.1% in 2019, compared with 6.6% in 2018.

It should be noted that although Beijing’s official gross domestic product (GDP) figures are tracked as an indicator of economic health, many external observers have long expressed skepticism about the veracity of China’s reports.

Stateside, housing starts and building permits for December will both be released at 8:30 a.m. ET.

Industrial production figures for December, capacity utilization data for December, a preliminary reading of consumer sentiment for January and job vacancies data for November will all follow slightly later in the session.

Philadelphia Fed President Patrick Harker and Fed Vice Chair Randal Quarles will also comment on the world’s largest economy at separate events.

There are no major U.S. Treasury auctions scheduled on Friday.

— CNBC’s Huileng Tan contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: sam meredith
Keywords: news, cnbc, companies, worlds, data, yields, higher, economy, fed, treasury, investors, economic, figures, 2019, await


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