Here’s how to pay less to your credit card company

If you want to try paying less to your credit card company, go old school and make a phone call. A customer signs for a purchase with a chip credit card at a Wal-Mart location in Burbank, California. In April, the nation’s collective credit card tab reached more than $1 trillion, according to the Federal Reserve. Since 2016, the Federal Reserve has made eight increases to a key interest rate that affects consumer debt. “Otherwise, you could end up paying more to your credit card company than you


If you want to try paying less to your credit card company, go old school and make a phone call. A customer signs for a purchase with a chip credit card at a Wal-Mart location in Burbank, California. In April, the nation’s collective credit card tab reached more than $1 trillion, according to the Federal Reserve. Since 2016, the Federal Reserve has made eight increases to a key interest rate that affects consumer debt. “Otherwise, you could end up paying more to your credit card company than you
Here’s how to pay less to your credit card company Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: sarah obrien
Keywords: news, cnbc, companies, company, rate, schulz, pay, fee, ask, try, survey, card, heres, credit, interest


Here's how to pay less to your credit card company

If you want to try paying less to your credit card company, go old school and make a phone call. While most cardholders have not requested a break on either interest rates or fees recently, the majority of those who did ask were successful, a recent survey shows. In a recent one-year period — a time when interest rates were rising — 81% of cardholders who asked for a lower rate got it, and most got a reduction of between 5 and 6 percentage points, according to research from CompareCards.com.

A customer signs for a purchase with a chip credit card at a Wal-Mart location in Burbank, California. Patrick T. Fallon | Bloomberg | Getty Images

For late-payment fees, 87% were successful getting them eliminated, and 67% got their annual fee waived (24% were given a reduced annual fee). “I was surprised that the chances of success are sky-high for every break we asked people about,” said Matt Schulz, chief industry analyst at CompareCards.com, which polled more than 1,000 people for its survey in March. The report also shows that although women were less likely to ask for a break, they had the same success rate as men when they did ask for one. However, about three-quarters of all respondents have not asked for any sort of reduced rate or waived fee, even as the amount of debt they carry — and the cost to finance it — has continued to climb.

In April, the nation’s collective credit card tab reached more than $1 trillion, according to the Federal Reserve. The average interest rate is about 16.9%, according to CompareCards. For store credit cards, the average is just under 25%. Since 2016, the Federal Reserve has made eight increases to a key interest rate that affects consumer debt. Many economists now expect a small rate cut to be the Fed’s next move at some point this year unless economic indicators change. However, Schulz said not to wait for rates to move down to try getting your rate down. “You have a lot more power than you realize, regardless of what the Fed does,” he said. In the CompareCards study, the average rate reduction that survey participants were able to snag was 6 percentage points. The median — half fell above, half below — was about 5 percentage points. More from Personal Finance:

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If you want that job, avoid these five thank-you note don’ts Say you have a balance of $5,000 on a card that charges you 24% in interest and you pay $250 a month. It would take 26 months to pay off that amount and you’d pay about $1,450 in interest. If you could get that rate to 18%, you’d save more than $450 in interest and pay it off two months earlier, the study shows. If you do try to negotiate the interest rate, it’s worthwhile being armed with another favorable offer you’ve received to see if they can match it, Schulz said. He also pointed out that if you already are paying a lower-than-average interest rate, it’s less likely you’ll get a huge reduction. You can also explore 0% deals, which typically charge you an upfront fee but no interest for a set amount of time. And, because the poll was random, Schulz said the success rate is likely not limited to consumers with high credit scores. “That’s a really positive sign and a good indicator that even folks with not-perfect credit should take time to ask,” he said. “Otherwise, you could end up paying more to your credit card company than you probably need to.”


Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: sarah obrien
Keywords: news, cnbc, companies, company, rate, schulz, pay, fee, ask, try, survey, card, heres, credit, interest


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Gold climbs on Fed rate cut speculation, growth concerns

Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards. Gold prices gained momentum on Wednesday as the dollar dipped on speculation the U.S. central bank would cut interest rates this year amid concerns about waning global economic growth. U.S. gold futures were up 0.4% to $1,336.60 per ounce. Adding to concerns, U.S. consumer prices barely rose in May, likely increasing pressure on the Fed to cut interest rates this year. Lower interest rates make safe-haven asse


Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards. Gold prices gained momentum on Wednesday as the dollar dipped on speculation the U.S. central bank would cut interest rates this year amid concerns about waning global economic growth. U.S. gold futures were up 0.4% to $1,336.60 per ounce. Adding to concerns, U.S. consumer prices barely rose in May, likely increasing pressure on the Fed to cut interest rates this year. Lower interest rates make safe-haven asse
Gold climbs on Fed rate cut speculation, growth concerns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12
Keywords: news, cnbc, companies, session, climbs, speculation, rate, fed, concerns, rates, gold, cut, trading, futures, dollar, higher, ounce, growth, interest


Gold climbs on Fed rate cut speculation, growth concerns

Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards.

Gold prices gained momentum on Wednesday as the dollar dipped on speculation the U.S. central bank would cut interest rates this year amid concerns about waning global economic growth.

Spot gold was trading 0.5% higher at $1,332.80 per ounce, a rebound from the previous session when it fell to a 10-day low of $1,319.35.

U.S. gold futures were up 0.4% to $1,336.60 per ounce.

“Today, global equities are weaker, there is some safe-haven buying, and buying ahead of the U.S. Fed meeting next week,” said Bob Haberkorn, senior market strategist at RJO Futures.

“If the Fed cuts rates in June, youre going to see some substantial gains here in the precious metals market … People are trying to get ahead of that and add some gold to their portfolio.”

Global equities snapped a seven-day winning streak after U.S. President Donald Trump said he had no interest in moving ahead with a trade deal with China unless Beijing agreed to four or five “major points.”

Adding to concerns, U.S. consumer prices barely rose in May, likely increasing pressure on the Fed to cut interest rates this year.

Fed policymakers will meet on June 18-19. Markets have priced in at least two U.S. rate cuts by the end of 2019. Futures imply around an 80% chance of a rate cut as early as July.

Lower interest rates make safe-haven assets such as gold, which does not yield interest, more attractive while weighing on the dollar. The U.S. currency was trading largely unchanged against a basket of currencies on Wednesday.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell marginally to 756.18 tonnes on Tuesday from 756.42 tonnes on Monday.

The gold bulls have the overall near-term technical advantage and regained momentum today, ” Jim Wyckoff, senior analyst at Kitco, said in a note. He added that the next upside price target would be a close in August futures above June’s high of $1,352.70.

Among other metals, silver was up 0.6% to $14.79 per ounce, while platinum inched 0.2% higher to $814.50.

Palladium was little changed at $1,394.30 per ounce, having hit a six-week high of $1,404 earlier in the session. The autocatalyst metal was trading higher for a fifth consecutive session.


Company: cnbc, Activity: cnbc, Date: 2019-06-12
Keywords: news, cnbc, companies, session, climbs, speculation, rate, fed, concerns, rates, gold, cut, trading, futures, dollar, higher, ounce, growth, interest


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Gold dips slightly on profit booking, US-China trade optimism

Gold prices dipped slightly on Tuesday as investors booked profits following robust gains over the past weeks, while rising hopes of a trade deal between China and the United States lifted equities. Spot gold dipped slightly to $1,327.41 per ounce. Global Investors, adding that strong gains last week prompted some profit booking. Lower interest rates reduce the opportunity cost of holding nonyielding bullion and weigh on the dollar. “I dont think it (gold prices) has the fundamentals to move muc


Gold prices dipped slightly on Tuesday as investors booked profits following robust gains over the past weeks, while rising hopes of a trade deal between China and the United States lifted equities. Spot gold dipped slightly to $1,327.41 per ounce. Global Investors, adding that strong gains last week prompted some profit booking. Lower interest rates reduce the opportunity cost of holding nonyielding bullion and weigh on the dollar. “I dont think it (gold prices) has the fundamentals to move muc
Gold dips slightly on profit booking, US-China trade optimism Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11
Keywords: news, cnbc, companies, uschina, tariffs, optimism, rates, gold, gains, prices, trade, president, slightly, profit, investors, ounce, booking, interest, dips


Gold dips slightly on profit booking, US-China trade optimism

Gold prices dipped slightly on Tuesday as investors booked profits following robust gains over the past weeks, while rising hopes of a trade deal between China and the United States lifted equities.

However, increasing expectations the U.S. Federal Reserve would proceed with an interest rate cut this year pressured the dollar, supporting bullion rates.

Spot gold dipped slightly to $1,327.41 per ounce. Prices had hit a 14-month high of $1,348.08 on June 7.

U.S. gold futures settled 0.1% higher at $1,328.50 per ounce.

With fears easing that the United States would impose trade tariffs with Mexico, investors are now optimistic that U.S. President Donald Trump could shelve threats to impose more tariffs on China as well. He is expected to meet with President Xi Jingping at a Group of 20 summit on June 28-29.

“People think there is going to be a sort-of resolution at the end of this month with tariffs when President Trump meets with Xi,” said Michael Matousek, head trader at U.S. Global Investors, adding that strong gains last week prompted some profit booking.

The trade dispute between Beijing and Washington has toppled markets since its inception more than a year ago and raised concerns of a global economic slowdown, prompting central banks around the world to keep a hold on interest rates.

“The rhetoric around Fed rates cut is weakening the dollar, which will help drive gold,” Matousek said. Lower interest rates reduce the opportunity cost of holding nonyielding bullion and weigh on the dollar.

Investors now see the U.S. Federal Reserve cutting rates as well, with Fed fund futures now pricing in more than two 25-basis point rate cuts by year-end.

Markets await consumer price index data on Wednesday, closely watched by the Fed as an inflation indicator, and Retail sales on Friday for indication on whether tariffs are slowing the economy.

“Stronger equity markets has drawn money away from gold,” said Rob Lutts, chief investment officer at Cabot Wealth Management. “I dont think it (gold prices) has the fundamentals to move much higher. It has exhausted its run right here.”

Other precious metals did not resonate with bullion’s move, with silver up 0.6% at $14.75 per ounce and platinum gaining nearly 1% to $809.50 per ounce.

Among other precious metals, palladium extended gains for a fourth straight session, climbing 0.9% to a six-week high at $1,395.01 per ounce.


Company: cnbc, Activity: cnbc, Date: 2019-06-11
Keywords: news, cnbc, companies, uschina, tariffs, optimism, rates, gold, gains, prices, trade, president, slightly, profit, investors, ounce, booking, interest, dips


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European markets gain as investors digest ECB decision; US jobs data also in focus

The pan-European Stoxx 600 was up 0.8% during the afternoon session, technology stocks leading gains with a 1.6% rise as all sectors traded in positive territory. As another trading week draws to a close, investors in Europe await the latest nonfarm payrolls out of the U.S, which are due out during Europe’s afternoon session. Another central bank that traders remain focused on is the European Central Bank. On Thursday, the ECB decided that it would postpone its first post-crisis interest rate hi


The pan-European Stoxx 600 was up 0.8% during the afternoon session, technology stocks leading gains with a 1.6% rise as all sectors traded in positive territory. As another trading week draws to a close, investors in Europe await the latest nonfarm payrolls out of the U.S, which are due out during Europe’s afternoon session. Another central bank that traders remain focused on is the European Central Bank. On Thursday, the ECB decided that it would postpone its first post-crisis interest rate hi
European markets gain as investors digest ECB decision; US jobs data also in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-07  Authors: elliot smith alexandra gibbs, elliot smith, alexandra gibbs
Keywords: news, cnbc, companies, markets, bank, vice, decision, postpone, remain, afternoon, jobs, white, central, week, gain, focus, european, mexico, data, interest, ecb, digest, investors


European markets gain as investors digest ECB decision; US jobs data also in focus

The pan-European Stoxx 600 was up 0.8% during the afternoon session, technology stocks leading gains with a 1.6% rise as all sectors traded in positive territory.

As another trading week draws to a close, investors in Europe await the latest nonfarm payrolls out of the U.S, which are due out during Europe’s afternoon session.

Economists polled by Reuters are forecasting that the U.S. will add 180,000 jobs during the course of May, yet if the figure is dramatically different to this, then this could impact the U.S. Federal Reserve’s current thinking surrounding interest rates.

Another central bank that traders remain focused on is the European Central Bank. On Thursday, the ECB decided that it would postpone its first post-crisis interest rate hike, while raising its inflation forecast.

Elsewhere, trade turmoil continues to ruffle feathers. Officials from the U.S. and Mexico continued talks on Thursday, with Vice President Mike Pence stating that he was encouraged that Mexico was open to doing more on immigration, Reuters reported.

A Bloomberg report on Thursday meantime, suggested that the White House was debating on whether to postpone tariffs, however Press Secretary Sarah Huckabee Sanders stated that the administration’s “position has not changed.” Discussions between both nations will resume and remain a key talking point in markets.


Company: cnbc, Activity: cnbc, Date: 2019-06-07  Authors: elliot smith alexandra gibbs, elliot smith, alexandra gibbs
Keywords: news, cnbc, companies, markets, bank, vice, decision, postpone, remain, afternoon, jobs, white, central, week, gain, focus, european, mexico, data, interest, ecb, digest, investors


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European markets gain as investors digest ECB decision; US jobs data also in focus

The pan-European Stoxx 600 was up 0.8% during the afternoon session, technology stocks leading gains with a 1.6% rise as all sectors traded in positive territory. As another trading week draws to a close, investors in Europe await the latest nonfarm payrolls out of the U.S, which are due out during Europe’s afternoon session. Another central bank that traders remain focused on is the European Central Bank. On Thursday, the ECB decided that it would postpone its first post-crisis interest rate hi


The pan-European Stoxx 600 was up 0.8% during the afternoon session, technology stocks leading gains with a 1.6% rise as all sectors traded in positive territory. As another trading week draws to a close, investors in Europe await the latest nonfarm payrolls out of the U.S, which are due out during Europe’s afternoon session. Another central bank that traders remain focused on is the European Central Bank. On Thursday, the ECB decided that it would postpone its first post-crisis interest rate hi
European markets gain as investors digest ECB decision; US jobs data also in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-07  Authors: elliot smith alexandra gibbs, elliot smith, alexandra gibbs
Keywords: news, cnbc, companies, markets, bank, vice, decision, postpone, remain, afternoon, jobs, white, central, week, gain, focus, european, mexico, data, interest, ecb, digest, investors


European markets gain as investors digest ECB decision; US jobs data also in focus

The pan-European Stoxx 600 was up 0.8% during the afternoon session, technology stocks leading gains with a 1.6% rise as all sectors traded in positive territory.

As another trading week draws to a close, investors in Europe await the latest nonfarm payrolls out of the U.S, which are due out during Europe’s afternoon session.

Economists polled by Reuters are forecasting that the U.S. will add 180,000 jobs during the course of May, yet if the figure is dramatically different to this, then this could impact the U.S. Federal Reserve’s current thinking surrounding interest rates.

Another central bank that traders remain focused on is the European Central Bank. On Thursday, the ECB decided that it would postpone its first post-crisis interest rate hike, while raising its inflation forecast.

Elsewhere, trade turmoil continues to ruffle feathers. Officials from the U.S. and Mexico continued talks on Thursday, with Vice President Mike Pence stating that he was encouraged that Mexico was open to doing more on immigration, Reuters reported.

A Bloomberg report on Thursday meantime, suggested that the White House was debating on whether to postpone tariffs, however Press Secretary Sarah Huckabee Sanders stated that the administration’s “position has not changed.” Discussions between both nations will resume and remain a key talking point in markets.


Company: cnbc, Activity: cnbc, Date: 2019-06-07  Authors: elliot smith alexandra gibbs, elliot smith, alexandra gibbs
Keywords: news, cnbc, companies, markets, bank, vice, decision, postpone, remain, afternoon, jobs, white, central, week, gain, focus, european, mexico, data, interest, ecb, digest, investors


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Gold eyes best week since March 2018 on rate cut views; US jobs data in focus

Gold prices steadied on Friday, but remained on course for their best week since March 2018, after rising expectations for a U.S. rate cut and concerns that trade tussles could hit global growth boosted demand for safe-haven bullion. However, having failed earlier this week to breach its 2019 high of $1,346.73, analysts expect the metal to consolidate until there is fresh impetus. Spot gold was steady at $1,335.27 per ounce at 0902 GMT, while U.S. gold futures were down 0.2% to $1,339.60. Gold h


Gold prices steadied on Friday, but remained on course for their best week since March 2018, after rising expectations for a U.S. rate cut and concerns that trade tussles could hit global growth boosted demand for safe-haven bullion. However, having failed earlier this week to breach its 2019 high of $1,346.73, analysts expect the metal to consolidate until there is fresh impetus. Spot gold was steady at $1,335.27 per ounce at 0902 GMT, while U.S. gold futures were down 0.2% to $1,339.60. Gold h
Gold eyes best week since March 2018 on rate cut views; US jobs data in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-07
Keywords: news, cnbc, companies, higher, best, ounce, trade, views, data, jobs, week, rate, eyes, focus, cut, interest, gold, safehaven, track, market


Gold eyes best week since March 2018 on rate cut views; US jobs data in focus

Gold prices steadied on Friday, but remained on course for their best week since March 2018, after rising expectations for a U.S. rate cut and concerns that trade tussles could hit global growth boosted demand for safe-haven bullion.

However, having failed earlier this week to breach its 2019 high of $1,346.73, analysts expect the metal to consolidate until there is fresh impetus.

Spot gold was steady at $1,335.27 per ounce at 0902 GMT, while U.S. gold futures were down 0.2% to $1,339.60.

“We have had quite a move higher earlier this week, but we are moving towards levels where the market will struggle to go much higher,” ING analyst Warren Patterson said.

Gold has rallied in a short span of time, having gained about 2.3% this week, and is on track for its best seven days since week ending March 23, 2018.

“Overall sentiment is still fairly supportive for the gold market,” Patterson added, attributing the recent price rally to a two-pronged U.S. trade spat with Mexico and China, and hopes of an interest rate cut by the U.S. Federal Reserve.

The United States and Mexico concluded their second day of talks on trade and migration on Thursday and markets rebounded on optimism a deal could be close. However, it remains unclear whether Mexican pledges to curb migration flows will be enough to persuade Washington to postpone tariffs.

U.S. President Donald Trump said he would decide whether to carry out his threat to hit Beijing with tariffs on at least $300 billion in Chinese goods after a meeting of leaders of the world’s largest economies late this month.

Gold’s appeal as a safe-haven investment is bolstered in times of geopolitical uncertainty.

“Gold is likely to stay muted through the rest of the day before the release of the non-farm payrolls. Investors want to see the impact on the U.S. jobs market before reassessing the current pessimism,” Howie Lee, an economist at OCBC Bank, said.

U.S. non-farm payrolls data at 1230 GMT will provide clues on the trajectory of interest rates.

Meanwhile, New York Fed President John Williams on Thursday acknowledged the impact of trade and global growth concerns on business investment, but said he was keeping an open mind on interest rates.

Among other metals, silver rose 0.5% to $14.93 per ounce, on track for its best week since late January.

Platinum edged 0.1% higher to $804.06 an ounce. The metal was headed for its first weekly gain in seven.

Palladium dipped 0.1% to $1,350.75 an ounce.


Company: cnbc, Activity: cnbc, Date: 2019-06-07
Keywords: news, cnbc, companies, higher, best, ounce, trade, views, data, jobs, week, rate, eyes, focus, cut, interest, gold, safehaven, track, market


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Microsoft and Amazon took a look at Looker before Google’s $2.6 billion purchase

After Google cloud chief Thomas Kurian approached data analytics company Looker about a potential tie-up earlier this year, Looker turned to a familiar face in Silicon Valley for advice: Frank Quattrone. Quattrone’s investment bank, Qatalyst Partners, shopped around for potential bidders and got interest from companies including Microsoft and Amazon, according to people familiar with the matter. Google aggressively pursued Looker, quickly pulling together its $2.6 billion offer, said the people,


After Google cloud chief Thomas Kurian approached data analytics company Looker about a potential tie-up earlier this year, Looker turned to a familiar face in Silicon Valley for advice: Frank Quattrone. Quattrone’s investment bank, Qatalyst Partners, shopped around for potential bidders and got interest from companies including Microsoft and Amazon, according to people familiar with the matter. Google aggressively pursued Looker, quickly pulling together its $2.6 billion offer, said the people,
Microsoft and Amazon took a look at Looker before Google’s $2.6 billion purchase Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: ari levy
Keywords: news, cnbc, companies, matter, look, amazon, potential, familiar, led, googles, purchase, google, looker, interest, 26, cloud, billion, microsoft, took


Microsoft and Amazon took a look at Looker before Google's $2.6 billion purchase

After Google cloud chief Thomas Kurian approached data analytics company Looker about a potential tie-up earlier this year, Looker turned to a familiar face in Silicon Valley for advice: Frank Quattrone.

Quattrone’s investment bank, Qatalyst Partners, shopped around for potential bidders and got interest from companies including Microsoft and Amazon, according to people familiar with the matter. Google aggressively pursued Looker, quickly pulling together its $2.6 billion offer, said the people, who asked not to be named because the negotiations were private.

Kurian, who previously led a 35,000-person team at Oracle, has talked publicly about rapidly hiring enterprise salespeople to take on the cloud leaders, but this is his first signature move since taking over as the head of Google’s cloud in November. The purchase of Looker is the third-largest in Google’s 21-year history, behind only Motorola and Nest, and by far the biggest for the cloud business, which was most recently led by VMware co-founder Diane Greene.

Companies turn to Looker ‘s business intelligence software for understanding and visualizing large amounts of complex data for everything from marketing to financial planning.

Google paid a hefty multiple to close the deal. According to a report from Canaccord Genuity, Looker will generate between $140 million and $180 million in revenue this year. At the high end, that comes out to a forward price-to-sales multiple of 14, which is comparable to the most expensive software deals of last year, like SAP’s purchase of Qualtrics and Salesforce’s acquisition of MuleSoft.

In its last fundraising round in December, Looker had 600 employees and was valued at $1.6 billion.

Investors have been waiting for Google to get into the dealmaking game, given the huge advantage that Amazon Web Services has built and the amount of money Microsoft is investing to keep hold of second place. Google had 7.6% of the cloud market at the end of 2018, trailing AWS at 32% and Microsoft at 13.7%, according to Canalys.

“An acquisition was a matter of when, not if,” wrote Aaron Kessler, an analyst at Raymond James, in a report after Thursday’s announcement. “With Looker out of the way, the question turns to ‘What else is on GCP’s shopping list?'”

Kurian started conversations with Looker in the first few months of the year to get a better understanding of the technology and how customers are using it. Those discussions soon turned into M&A talks and led Looker to hire Qatalyst to suss out market interest, people familiar with the matter said. There was some serious interest among potential suitors but nothing rivaling Google’s bid, they said.


Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: ari levy
Keywords: news, cnbc, companies, matter, look, amazon, potential, familiar, led, googles, purchase, google, looker, interest, 26, cloud, billion, microsoft, took


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A breakdown of whether investors are safer after the SEC passes financial protection rule

The spirit of this new rule also requires broker/dealers to act in the best interest of their clients as well. The SEC this week voted to approve a financial investment reform package . Critics are complaining Reg BI does not clearly define what “best interest” is and that the rules are too weak. That’s why it’s likely the SEC will gradually develop standards for what constitutes “best interest.” They will have some time: Reg BI does not come into effect until June 2020.


The spirit of this new rule also requires broker/dealers to act in the best interest of their clients as well. The SEC this week voted to approve a financial investment reform package . Critics are complaining Reg BI does not clearly define what “best interest” is and that the rules are too weak. That’s why it’s likely the SEC will gradually develop standards for what constitutes “best interest.” They will have some time: Reg BI does not come into effect until June 2020.
A breakdown of whether investors are safer after the SEC passes financial protection rule Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: bob pisani
Keywords: news, cnbc, companies, safer, financial, best, reg, investment, sec, brokerdealers, protection, breakdown, clients, bi, passes, rules, investors, interest, rule, advisors


A breakdown of whether investors are safer after the SEC passes financial protection rule

That’s a positive. Under current law, financial advisors have a fiduciary obligations to act in the best interest of their clients and will remain fiduciaries under the new rules. The spirit of this new rule also requires broker/dealers to act in the best interest of their clients as well.

Both registered investment advisors and broker-dealers will be required to provide retail investors with a standard disclosure document that highlights the services being offered, the legal standards that apply, disclosure of any conflict of interest, and most importantly the fee structure — how they make their money.

Here’s the good news. Under the new Reg BI, both broker/dealers (a person or firm in the business of buying and selling securities on behalf of its customers) and investment advisors (a professional who provides financial advice to clients) will be required to place the interests of their clients above their own. Broker-dealers in particular will be required to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer.

The SEC this week voted to approve a financial investment reform package . Known as “Regulation Best Interest” or “Reg BI,” the package is intended to strengthen protections for investors by requiring financial advisors and in particular broker-dealers to disclose conflicts of interest.

The bad news

Here’s the bad news. Critics are complaining Reg BI does not clearly define what “best interest” is and that the rules are too weak.

That’s the reason the rule passed on a 3-1 vote, with the lone Democrat dissenting.

From the outset, many investor advocates wanted a uniform set of rules that applied to both financial advisors and broker/dealers, one that would make both fiduciaries required to act in the best interests of their clients. The advisory community (Wall Street) has fought against this, arguing that earlier versions would invite an avalanche of lawsuits and restrict the ability of Americans to receive investment advice.

So instead of a uniform set of rules, we have two sets: a “fiduciary” rule for investment advisors and a “Best Interest” rule for broker-dealers.

While not perfect, there is reason to believe that the new Reg BI is an improvement over prior regulations, particularly concerning broker/dealers.

The broker-dealer community has faced criticism on several fronts. First, some believe they continue to place their clients into investments that are not suitable for them (putting a widow who should have relatively safe investments into a high-risk technology fund, for example), and that some broker-dealers routinely engage in trading their client’s portfolio solely to generate commissions without improving the portfolio, a practice known as “churning,” or only offered proprietary products that benefited the investment firm or that they failed to recommend the lowest-cost mutual fund or ETF.

Does the new Reg BI do anything to reduce these practices? I think they do.

First, there are disclosure obligations about the capacity in which the broker is acting, fees, the type and scope of services provided, and conflicts.

But there is more. There are standards of care that must be exercised. The broker-dealer must be able to articulate the risk, rewards, and costs of what they are doing for the client, and they must make a recommendation in the retail customer’s best interest.

Finally, the conflict of interest requirement mandates that broker/dealers must develop policies that identify and mitigate conflicts of interest, like suitability and churning.

With that said, I do understand the point of critics. Without a clear definition of what constitutes “best interest,” the rules can still be slippery.

For example, it doesn’t specifically require brokers to routinely recommend the lowest cost funds. Cost is one factor among several that can be considered.

That’s why it’s likely the SEC will gradually develop standards for what constitutes “best interest.” They will have some time: Reg BI does not come into effect until June 2020.


Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: bob pisani
Keywords: news, cnbc, companies, safer, financial, best, reg, investment, sec, brokerdealers, protection, breakdown, clients, bi, passes, rules, investors, interest, rule, advisors


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Europe markets close mixed as ECB strikes a dovish tone

The pan-European Stoxx 600 closed provisionally just below the flatline, with sectors and major bourses in mixed territory. European stocks closed mixed Thursday as the European Central Bank revised its forward guidance in its latest policy decision. The ECB announced that it would delay its first post-crisis interest rate hike until at least the middle of next year, while announcing generous terms on a new batch of long-term loans for banks. In a statement, the ECB said it would hold its key po


The pan-European Stoxx 600 closed provisionally just below the flatline, with sectors and major bourses in mixed territory. European stocks closed mixed Thursday as the European Central Bank revised its forward guidance in its latest policy decision. The ECB announced that it would delay its first post-crisis interest rate hike until at least the middle of next year, while announcing generous terms on a new batch of long-term loans for banks. In a statement, the ECB said it would hold its key po
Europe markets close mixed as ECB strikes a dovish tone Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: elliot smith alexandra gibbs, elliot smith, alexandra gibbs
Keywords: news, cnbc, companies, markets, close, tone, dovish, strikes, closed, rate, policy, interest, mixed, euro, trillion, europe, ecb, bank, central


Europe markets close mixed as ECB strikes a dovish tone

The pan-European Stoxx 600 closed provisionally just below the flatline, with sectors and major bourses in mixed territory.

European stocks closed mixed Thursday as the European Central Bank revised its forward guidance in its latest policy decision.

The ECB announced that it would delay its first post-crisis interest rate hike until at least the middle of next year, while announcing generous terms on a new batch of long-term loans for banks.

In a statement, the ECB said it would hold its key policy rate at the current -0.4% and continue to reinvest in maturing bonds in its 2.6 trillion euro ($2.9 trillion) debt portfolio. The central bank also announced it will pay lenders an interest rate of up to 0.3% to borrow. The euro rose to a day’s high on the news.

“The prolonged presence of uncertainties related to geopolitical factors, the rising threat of protectionism and vulnerabilities in emerging markets is leaving its mark on economic sentiment,” ECB President Mario Draghi said, as he addressed reporters during a news conference in Vilnius, Lithuania.

“Looking ahead, the governing council is determined to act in case of adverse contingencies.”


Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: elliot smith alexandra gibbs, elliot smith, alexandra gibbs
Keywords: news, cnbc, companies, markets, close, tone, dovish, strikes, closed, rate, policy, interest, mixed, euro, trillion, europe, ecb, bank, central


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People are buying up the asset class that loves trade wars, central bank easing and volatility

Fear about slowing growth and the prospect of lower interest rates have been pushing the price of gold higher. That also increased worries about economic growth, sent buyers into Treasurys, and raised expectations that the Fed would now not only lower interest rates. The gold buying also drove up ETFs, and SPDR Gold shares is up 4% since early May. “I do think the rally has some legs,” said Steel, head of precious metals analysis at HSBC. The increase in financial market volatility, and trade-re


Fear about slowing growth and the prospect of lower interest rates have been pushing the price of gold higher. That also increased worries about economic growth, sent buyers into Treasurys, and raised expectations that the Fed would now not only lower interest rates. The gold buying also drove up ETFs, and SPDR Gold shares is up 4% since early May. “I do think the rally has some legs,” said Steel, head of precious metals analysis at HSBC. The increase in financial market volatility, and trade-re
People are buying up the asset class that loves trade wars, central bank easing and volatility Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: patti domm
Keywords: news, cnbc, companies, buying, think, central, rates, steel, higher, run, lower, asset, gold, rally, easing, wars, loves, volatility, interest, trade, market, bank, class


People are buying up the asset class that loves trade wars, central bank easing and volatility

Fear about slowing growth and the prospect of lower interest rates have been pushing the price of gold higher.

But analysts say the metal may be nearing the top of its run for now, and whether it continues to gain depends on whether the markets continue to fear trade wars will dampen global growth.

Gold futures had been struggling this year to hold above $1,300 and once the price broke $1,279 in recent sessions, analysts said that set the stage for a move higher. Gold futures for August were higher by more than $5 to $1,334 per ounce Wednesday afternoon, and are up 5% since the beginning of May.

On Wednesday, the dollar was higher and Treasury yields were lower. Stocks were also higher, both on expectations the Fed would cut interest rates and hopes the U.S. would not slap tariffs on all Mexican goods next week, as threatened by President Donald Trump.

“Right now you have to take into account that it had a good run and also that we still have a firm dollar going forward,” said James Steel, chief commodities analyst at HSBC. The dollar and gold often move in opposite directions. Steel said he expects gold to reach a high of $1,372 by the end of the year, but it may stop for a period before it heads higher.

‘I think the market is in need of some consolidation right now, ” said Steel.

Bart Melek, head of commodities strategy at TD Securities, said he also sees the rally getting close to a peak for now.

“It’s been a nice run,” he said, adding he does not see the market breaking above the year highs of $1,346. “I think the market is a little overly optimistic on their Fed view. A lot of people expect as many as three cuts this year, starting in June. I don’t think that’s on. Yes the U.S. economy is slowing, and Mr. Trump has added to the uncertainty.”

Strategists say the buying interest in the metal picked up dramatically right after President Donald Trump tweeted that he would put tariffs on all Mexican goods. That also increased worries about economic growth, sent buyers into Treasurys, and raised expectations that the Fed would now not only lower interest rates. but maybe even cut twice this year.

The gold buying also drove up ETFs, and SPDR Gold shares is up 4% since early May.

“I do think the rally has some legs,” said Steel, head of precious metals analysis at HSBC. “It’s gone sharply higher in just a few days so one has to accept that the rally may need some period of consolidation. The increase in financial market volatility, and trade-related and geopolitical risks are what’s behind this.”


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: patti domm
Keywords: news, cnbc, companies, buying, think, central, rates, steel, higher, run, lower, asset, gold, rally, easing, wars, loves, volatility, interest, trade, market, bank, class


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