Fed’s Williams hints at more aggressive rate cuts: ‘Better to take preventative measures’

Central bankers need to act quickly and forcefully when rates are low and economic growth is slowing, New York Federal Reserve President John Williams said Thursday. But not when interest rates are in the vicinity of the ZLB,” he said in prepared remarks. However, he said that when faced with low rates and slowing growth, the best strategy is to “take swift action” and “keep interest rates lower for longer.” “The expectation of lower interest rates in the future lowers yields on bonds and thereb


Central bankers need to act quickly and forcefully when rates are low and economic growth is slowing, New York Federal Reserve President John Williams said Thursday. But not when interest rates are in the vicinity of the ZLB,” he said in prepared remarks. However, he said that when faced with low rates and slowing growth, the best strategy is to “take swift action” and “keep interest rates lower for longer.” “The expectation of lower interest rates in the future lowers yields on bonds and thereb
Fed’s Williams hints at more aggressive rate cuts: ‘Better to take preventative measures’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: jeff cox
Keywords: news, cnbc, companies, better, zlb, lower, measures, feds, interest, cut, hints, rate, economic, central, rates, low, zero, williams, aggressive, preventative, growth, cuts


Fed's Williams hints at more aggressive rate cuts: 'Better to take preventative measures'

Central bankers need to act quickly and forcefully when rates are low and economic growth is slowing, New York Federal Reserve President John Williams said Thursday.

The influential policymaker delivered a speech discussing what should be done when central banks are near the “zero lower bound,” or close to as low as rates can go.

“It’s better to take preventative measures than to wait for disaster to unfold,” he told the annual meeting of the Central Bank Research Association.

Rather than keep rates elevated to give central banks room to cut in the face of a crisis, Williams said the proper move is not to “keep your powder dry.”

“When the ZLB is nowhere in view, one can afford to move slowly and take a ‘wait and see’ approach to gain additional clarity about potentially adverse economic developments. But not when interest rates are in the vicinity of the ZLB,” he said in prepared remarks. “In that case, you want to do the opposite, and vaccinate against further ills. When you only have so much stimulus at your disposal, it pays to act quickly to lower rates at the first sign of economic distress.”

Williams spoke as the policymaking Federal Open Market Committee is expected to cut its benchmark interest rate during the July 30-31 meeting. Officials are worried about persistently low inflation, spillover from a global slowdown and the fallout from back-and-forth tariffs between the U.S. and China.

The Fed currently pegs the overnight funds rate in a range between 2.25% and 2.5% — above zero, but still well below normal levels that have prevailed during past economic expansions.

Williams did not directly address whether he favors a cut, though markets are pricing in a 100% chance of a quarter-point reduction and a 38% probability that the Fed might cut by half a point, according to the CME.

However, he said that when faced with low rates and slowing growth, the best strategy is to “take swift action” and “keep interest rates lower for longer.”

“The expectation of lower interest rates in the future lowers yields on bonds and thereby fosters more favorable financial conditions overall. This will allow the stimulus to pick up steam, support economic growth over the medium term, and allow inflation to rise,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: jeff cox
Keywords: news, cnbc, companies, better, zlb, lower, measures, feds, interest, cut, hints, rate, economic, central, rates, low, zero, williams, aggressive, preventative, growth, cuts


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dollar holds steady, pound hits 27-month low

The dollar was little changed against most major currencies on Wednesday, pausing after prior day’s gains tied to stronger-than-forecast retail sales data, while the pound fell to 27-month lows versus the greenback on jitters about a no-deal Brexit. The euro fell to $1.120 earlier Wednesday before clawing back up to $1.1227. The pound fell to a fresh 27-month low of $1.2382 before rebounding to $1.2429. An index that tracks the dollar against the euro, yen, pound and three other currencies was d


The dollar was little changed against most major currencies on Wednesday, pausing after prior day’s gains tied to stronger-than-forecast retail sales data, while the pound fell to 27-month lows versus the greenback on jitters about a no-deal Brexit. The euro fell to $1.120 earlier Wednesday before clawing back up to $1.1227. The pound fell to a fresh 27-month low of $1.2382 before rebounding to $1.2429. An index that tracks the dollar against the euro, yen, pound and three other currencies was d
Dollar holds steady, pound hits 27-month low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17
Keywords: news, cnbc, companies, low, pound, greenback, steady, hits, 27month, dollar, inflation, holds, yen, data, zone, euro, fell


Dollar holds steady, pound hits 27-month low

The dollar was little changed against most major currencies on Wednesday, pausing after prior day’s gains tied to stronger-than-forecast retail sales data, while the pound fell to 27-month lows versus the greenback on jitters about a no-deal Brexit.

The euro hit a one-week low against the dollar and towards the lower end of this year’s trading range, weighed down by expectations of easing from the European Central Bank and investors’ preference for the higher-yielding U.S. currency.

“It’s been a quiet midweek night of trade in FX with major holding steady around key levels after selling off against the dollar yesterday,” Boris Schlossberg, managing director of FX strategy at BK Asset Management wrote in a research note.

The euro fell to $1.120 earlier Wednesday before clawing back up to $1.1227.

The dollar was little changed at 108.08 yen. The pound fell to a fresh 27-month low of $1.2382 before rebounding to $1.2429. It also hit a fresh six-month low against the euro at 90.51 pence.

An index that tracks the dollar against the euro, yen, pound and three other currencies was down 0.22% at 97.19 after touching a one-week high.

The greenback has strengthened since late June in response to better-than-expected data on U.S. jobs, inflation and retail sales.

Its rise has been limited by firming signals from Federal Reserve officials of a possible rate decrease perhaps in two weeks to counter risk from global trade tensions and sluggish price growth at home. U.S. interest rates futures implied traders fully expect the Fed to cut rates at its upcoming policy meeting on July 30-31 with a 35% chance for a half-point decrease, CME Group’s FedWatch tool showed.

Fed policy-makers will release an assessment of the economy with its latest Beige Book at 2 p.m. (1800 GMT). Moreover, the International Monetary Fund on Wednesday said the greenback was overvalued by 6% to 12%, based on near-term economic fundamentals, while the euro, Japan’s yen and China’s yuan were seen as broadly in line with fundamentals.

Wednesday’s data on euro zone consumer price inflation, which was revised up to 1.3% year-on-year in June, failed to boost the euro.

ECB board member Benoit Coeure said the ECB was ready to act if necessary to help inflation in the euro zone move towards its aim of close to but below 2%. Nearly two ECB interest rate cuts of 10 basis points are priced in by money markets for 2019.


Company: cnbc, Activity: cnbc, Date: 2019-07-17
Keywords: news, cnbc, companies, low, pound, greenback, steady, hits, 27month, dollar, inflation, holds, yen, data, zone, euro, fell


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Buying stocks when they are this expensive has led to low returns in the future

But buying stocks when they are this expensive has historically led to lower future returns, data compiled by Ned Davis Research shows. Lower rates make stocks more attractive relative to bonds as it becomes harder to find yield in the bond market. After such a strong gain, “few would be surprised to see that stocks are expensive,” Clissold said. “For that reason, relative valuations provide a starkly different picture than absolute ones,” he added. “Comparing the S&P 500 GAAP earnings yield (in


But buying stocks when they are this expensive has historically led to lower future returns, data compiled by Ned Davis Research shows. Lower rates make stocks more attractive relative to bonds as it becomes harder to find yield in the bond market. After such a strong gain, “few would be surprised to see that stocks are expensive,” Clissold said. “For that reason, relative valuations provide a starkly different picture than absolute ones,” he added. “Comparing the S&P 500 GAAP earnings yield (in
Buying stocks when they are this expensive has led to low returns in the future Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: fred imbert
Keywords: news, cnbc, companies, returns, led, buying, fed, relative, stocks, expensive, future, lower, low, ned, yield, valuations, rates, sp


Buying stocks when they are this expensive has led to low returns in the future

Stocks recently notched all-time highs and with the Federal Reserve likely cutting rates later this month, the rally could keep going. But buying stocks when they are this expensive has historically led to lower future returns, data compiled by Ned Davis Research shows.

The S&P 500’s price-to-earnings ratio — one of the most widely used valuation metrics — is sitting at 21.5 on a GAAP basis, well within its historical top quintile. The index’s median return over a 10-year period when valuations are so high is 4.7%, when adjusted for inflation. The S&P 500’s median returns when valuations are at lower quintiles range between 5.4% and 11.6%, according to Ned Davis Research.

The market’s historically high valuation comes at a time when many investors are expecting easier Fed policy to further juice gains in 2019. It also comes at a time when stocks are historically cheap relative to bonds. Lower rates make stocks more attractive relative to bonds as it becomes harder to find yield in the bond market.

But with the S&P 500’s absolute valuation being so high, investors should be more cautious moving forward, Ned Davis notes.

“Absolute valuations have done a better job than relative ones of identifying stocks as cheap or expensive in the long run,” Ed Clissold, chief U.S. strategist at Ned Davis Research Group, wrote in a note.

The S&P 500 is up around 20% in 2019 in part because the Fed has pivoted away from its initial stance on rate hikes. Entering 2019, the Fed had forecast it would raise rates twice this year. Since then, the Fed brought down its rate-hike forecast to zero and has increased expectations for lower rates as soon as July.

Fed Chair Jerome Powell reaffirmed those expectations last week. In his testimony to Congress, Powell said “crosscurrents ” stemming from slower economic growth and lingering U.S.-China trade tensions were dampening the U.S.’ outlook on the economy.

Stocks and bonds have rallied side by side as a Fed rate cut becomes more likely. The benchmark 10-year Treasury note yield has fallen nearly 60 basis points in the past six months (yields move inversely to prices). The S&P 500 is up more than 14% in that time.

After such a strong gain, “few would be surprised to see that stocks are expensive,” Clissold said. But “if stocks are so expensive, should investors put their money elsewhere? Central banks have left few options in the fixed income asset class.”

“For that reason, relative valuations provide a starkly different picture than absolute ones,” he added. “Comparing the S&P 500 GAAP earnings yield (inverse of the P/E ratio) to the 10-year Treasury yield, stocks are in the cheapest quintile versus T-notes historically.”

But the strategist points out that one of the key reasons stocks are so cheap relative to bonds is because of the sharp plunge in yields. “With the Fed poised to cut rates on July 31, the prospect for higher rates in the short term is dim, but history cautions against just relying on stocks being less overvalued than bonds.”

Subscribe to CNBC on YouTube.


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: fred imbert
Keywords: news, cnbc, companies, returns, led, buying, fed, relative, stocks, expensive, future, lower, low, ned, yield, valuations, rates, sp


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Sterling hits lowest level since April 2017 as disorderly Brexit fears grow

The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October. Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record. Previous London Mayor and former Foreign Secretary Boris


The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October. Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record. Previous London Mayor and former Foreign Secretary Boris
Sterling hits lowest level since April 2017 as disorderly Brexit fears grow Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: david reid
Keywords: news, cnbc, companies, lowest, disorderly, secretary, ireland, uk, sterling, fears, low, trade, brexit, pound, currency, versus, separate, hits, grow, 2017, level, union


Sterling hits lowest level since April 2017 as disorderly Brexit fears grow

Contenders to be the U.K.’s next leader, Boris Johnson and Jeremy Hunt (R), take part in the debate “Head To Head” on ITV on July 9, 2019 in Salford, England.

The pound plunged to new lows Tuesday after lackluster U.K. data compounded growing fears of a haphazard Brexit outcome at the end of October.

Sterling versus the U.S. dollar weakened 0.7% Tuesday, reaching $1.2418 by late-morning London trade. It hit a 27-month low against the greenback and a new six-month low versus the euro. Against the single currency, the pound has also suffered 10 consecutive weeks of losses — the longest on record.

In a research note Tuesday, Nomura’s currency analyst Jordan Rochester called the fall in the pound’s spot price as “the story of the day” and said there was potentially more downside risk.

“I am worried that volume is starting from a very low base and hedging flows will be picking up further,” he said. Rochester said in a separate text on Monday that he expected a spike in volatility for the pound’s trade once lawmakers returned to the House of Commons in September after their summer breaks.

According to Reuters data the British pound has been the worst performing G-10 currency this year. Sterling’s recent trend of losses against its major trading partners has been attributed to the ongoing race to succeed Theresa May as the next Conservative Party leader and U.K. prime minister.

Previous London Mayor and former Foreign Secretary Boris Johnson is the favorite to defeat current Foreign Secretary Jeremy Hunt in the runoff.

In their pitches to Conservative Party members, both men have taken a hard-line stance on future negotiations with the European Union, suggesting that they are prepared to walk away without a deal on October 31.

In a television debate Monday, each declared that the Northern Ireland “backstop” was “dead,” as it could trap the U.K. into a never-ending customs union with the EU.

The backstop was agreed by May’s team with Brussels as a means to ensure that there was no physical border erected on the island of Ireland between Northern Ireland (which is a part of the U.K.) and the Republic of Ireland (a separate country that is to remain as a European Union member nation).


Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: david reid
Keywords: news, cnbc, companies, lowest, disorderly, secretary, ireland, uk, sterling, fears, low, trade, brexit, pound, currency, versus, separate, hits, grow, 2017, level, union


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Snap’s stock is up more than 200% from its low and is a huge winner in 2019

The stock price has more than tripled since hitting a record low of $4.99 on Dec. 21, closing at $15.61 on Friday. Within the U.S., Snapchat can reach between 30 million and 31.2 million users ages 18 to 24, according to the company’s ads manager tool. By comparison, Facebook’s reach among the same demographic is between 25 million and 30 million users, according to its Audience Insights tool. Snap’s reach expands further for advertisers who want to target even younger users. Brands have also us


The stock price has more than tripled since hitting a record low of $4.99 on Dec. 21, closing at $15.61 on Friday. Within the U.S., Snapchat can reach between 30 million and 31.2 million users ages 18 to 24, according to the company’s ads manager tool. By comparison, Facebook’s reach among the same demographic is between 25 million and 30 million users, according to its Audience Insights tool. Snap’s reach expands further for advertisers who want to target even younger users. Brands have also us
Snap’s stock is up more than 200% from its low and is a huge winner in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-13  Authors: salvador rodriguez
Keywords: news, cnbc, companies, 2019, company, 200, reach, snap, snaps, winner, low, stock, ar, huge, users, million, advertisers, snapchat, price


Snap's stock is up more than 200% from its low and is a huge winner in 2019

Evan Spiegel, co-founder and chief executive officer of Snap Inc., stands on the floor of the New York Stock Exchange during the company’s initial public offering on Thursday, March 2, 2017. Michael Nagle | Bloomberg | Getty Images

After a rough two years following its IPO, Snap is trading within shouting distance of its $17 debut price from March 2017. While hardly cause for celebration, considering a generic bet on the S&P 500 would’ve returned 25% during that same period, it’s quite a turnaround for a company that spent the bulk of last year in free fall, as users fled the Snapchat app and losses mounted. Snap has since abandoned its effort to cater to everybody, and renewed its focus on young users, which remain a strength for the company and an area where it has a clear advantage over rival Facebook. Advertisers are finding more ways to reach those users and now have better tools to track their campaigns. Investors are rewarding the company in a big way. The stock price has more than tripled since hitting a record low of $4.99 on Dec. 21, closing at $15.61 on Friday. The shares are up 183% this year, trouncing every member of the S&P 500, whose top performer, Advanced Micro Devices, is up 80% in 2019. “We believe product improvements and feature additions are driving positive trends in user growth and engagement that, along with monetization improvement from ad tech initiatives, should drive upside to consensus estimates,” wrote Goldman Sachs analysts, in a note to clients on Friday. They raised their rating to buy from neutral and boosted their 12-month price target to $18 from $13. Other investment banks have made similar moves. Bank of America on Thursday raised its price target for Snap to $17 from $12, and last month BTIG increased its share price prediction to $20 from $15.

‘It feels different’

Analysts and advertisers pointed to three main reasons for Snap’s reversal: Renewed focus on Gen Z users (those born roughly between 1995 and 2009)

Innovation in augmented reality (AR) technology

Maturation of its advertising business “It feels different, it feels good, it feels grown up but still authentic to them,” said Travis Freeman, executive vice president of media for ad agency VaynerMedia, an advertising agency. “It’s good vibes.” Freeman said his agency boosted spending on Snap by about 20% in the first half of the year from the same period in 2018. Snap still faces massive challenges. It’s losing hundreds of millions of dollars a quarter, including $310 million in the latest period, as it pumps money into research and development, while fellow consumer internet companies Google and Facebook have some of the fattest profit margins on the planet. Analysts are projecting substantial losses in the coming quarters. Even after the stock’s huge rally this year, its remains 8% below the IPO price from 2017. But optimism about Snap’s future is unquestionably on the rise, and much of that is attributable to CEO Evan Spiegel’s renewed focus on serving its core audience: the youth. Back in November 2017, Spiegel called out the company’s need to gain adoption with users 34 and older. That plan didn’t work, and Snap saw its user growth begin to shrink from 191 million daily active users in May 2018 to 186 million in October.

Snapchat, with its silly features for editing and enhancing photos, has always been better suited for younger users, and the company has come to grips with that. Within the U.S., Snapchat can reach between 30 million and 31.2 million users ages 18 to 24, according to the company’s ads manager tool. By comparison, Facebook’s reach among the same demographic is between 25 million and 30 million users, according to its Audience Insights tool. Snap’s reach expands further for advertisers who want to target even younger users. According to its ads manager tool, Snap can reach 48.4 million U.S. users between the ages of 13 and 24. “There is no questioning the fact that, in Gen Z, Snapchat has an incredibly strong, dominant footprint,” said Meghan Myszkowski, vice president of social activation for Essence, an advertising agency. “If advertisers want to reach Gen Z, they have to have Snap as a part of their mix.” Those younger users typically don’t have the purchasing power of older consumers who are more commonly in the workforce. While that limits Snap’s average revenue per user, advertisers are recognizing the importance of getting the youth familiar with their brands, said Carter Henderson, portfolio specialist for Fort Pitt Capital Group, which oversees $2.5 billion in assets. “The demographics Snap attracts will be the price setters of the future and investors are paying for this future growth,” said Henderson. Advertisers are particularly excited about Snap’s AR technology, which has led to improved engagement with users by letting them have fun with selfies and group photos. In 2019, Snap replicated the past success of its puppy face and rainbow lenses with a gender swap lens that showed users what they’d look like as a person of the opposite sex and a baby face lens that showed them as babies. Facebook mimicked Snapchat, adding AR lenses to its Stories feature and on Instagram, but Snap’s filters and enhancements have gone more viral. “The gender swap filter got a lot of attention and really took off,” said Noah Mallin, managing partner of media agency Wavemaker. “That’s a good sign of health that people are actively using the platform, and it points to one of the strengths Snap has: they’re still the leader when it comes to AR.” Brands have also used Snap’s AR technology to promote their products. In April, HBO teamed up with Snap to create a lens that allowed users to see one of the dragons from “Game of Thrones” land on the Flatiron Building in New York. And in June, Gatorade worked with Snapchat to create an AR experience built around the company’s “Every Day is Your Day” short film. The effort was part of Gatorade’s video-everywhere marketing strategy, which has lifted its digital ad spend to 46% of the total media budget, up from 35% in 2018. The bulk of that spending is going to advertising on Instagram, YouTube and Snapchat, the company said. “As a partner, Snapchat is always pushing boundaries to reach audiences in new and innovative ways,” said Jill Abbott, Gatorade’s head of consumer and athlete engagement, in an email.

Maturing as a company


Company: cnbc, Activity: cnbc, Date: 2019-07-13  Authors: salvador rodriguez
Keywords: news, cnbc, companies, 2019, company, 200, reach, snap, snaps, winner, low, stock, ar, huge, users, million, advertisers, snapchat, price


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Nordstrom is trading nearly $20 a share lower than a $50 a share offer it once rejected as too low

Two years ago, Nordstrom was offered a buyout offer at $50 a share. It’s shares are now trading 38% lower than that, but there’s still hope for the retailer. Nordstrom’s stock is down roughly 35% year-to-date, swept up in the general malaise investors have shown the retail sector. A special committee advising the company’s board rejected the family’s offer of $50 a share as too low, and the two ultimately called off talks. Pressure is also being put on Nordstrom by the the pall currently cast ac


Two years ago, Nordstrom was offered a buyout offer at $50 a share. It’s shares are now trading 38% lower than that, but there’s still hope for the retailer. Nordstrom’s stock is down roughly 35% year-to-date, swept up in the general malaise investors have shown the retail sector. A special committee advising the company’s board rejected the family’s offer of $50 a share as too low, and the two ultimately called off talks. Pressure is also being put on Nordstrom by the the pall currently cast ac
Nordstrom is trading nearly $20 a share lower than a $50 a share offer it once rejected as too low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: lauren hirsch, lauren thomas
Keywords: news, cnbc, companies, nordstrom, low, shares, retail, offer, nordstroms, lower, company, retailer, nearly, 50, 20, rejected, store, roughly, sector, trading, stores, share


Nordstrom is trading nearly $20 a share lower than a $50 a share offer it once rejected as too low

Two years ago, Nordstrom was offered a buyout offer at $50 a share. It’s shares are now trading 38% lower than that, but there’s still hope for the retailer.

Nordstrom’s stock is down roughly 35% year-to-date, swept up in the general malaise investors have shown the retail sector. Nordstrom’s challenges are not unique to the industry. Its competitors, Macy’s, J.C. Penney, are Kohl’s are facing their own hurdles as they grapple with too many stores and shoppers choosing to buy online or from brands directly.

But Nordstrom — with its affordable luxury price-point and high-touch customer service — has long been viewed as the darling of the sector. That perception was part of the argument that family members, who own 31.2% of the company, used in their quest to take the company private two years ago. The goal at the time was to avoid the pressure of the public market and make needed tougher decisions, like store closures, that are harder when at the mercy of quarterly reports and public investors.

That deal never came to fruition, however. A special committee advising the company’s board rejected the family’s offer of $50 a share as too low, and the two ultimately called off talks.

Now, with Nordstrom’s shares depressed along with the rest of industry, it seems its fears of the impact of being a public company have come to fruition.

Some of Nordstrom’s pain is self-inflicted. Executives acknowledged in May its fourth-quarter earnings were hurt by a poor roll-out of its “Nordy Club” loyalty program.

Pressure is also being put on Nordstrom by the the pall currently cast across the department store sector. And the retailer is being punished by investors for making the investments it needs to survive, like e-commerce and new stores.

Nordstrom reportedly spent north of $500 million on its New York flagship, set to open in October. The retailer has said it expects that flagship, along with the Nordstrom Local neighborhood service hubs expected to open this fall, will “contribute a meaningful sales lift for this market.”

It’s off-price retail concept, Nordstrom Rack, is a roughly $5 billion business that has recently slowed, but it benefits from the same bargain shopping trends that have sent shares of TJ Maxx parent, TJX, up nearly 25% year-to-date.

Meantime, Nordstrom continues to be well-positioned in its real estate. As retailers progressively view expansive store bases as a burden rather than a strength, Nordstrom touts a relatively small footprint in largely urban areas — roughly 120 full-line stores compared with Macy’s roughly 600 stores.

The retailer also continues to have strong relations with brands, as other department stores — which can’t promise preserving the high-end shopping experience they were once known for — struggle to obtain today’s best merchandise.

And Nordstrom’s competitors’ pain may be its gain.

Hudson’s Bay Co. has announced it is exploring options for its Lord & Taylor store and people familiar with the matter tell CNBC it could include further store closures. Richard Baker, the executive chairman of the Saks parent, is trying take the company private in a deal that could pave the way for it run its business more in line with Baker’s real estate background, rather than as a retail company.

Meantime, private-equity-backed Neiman Marcus has been struggling with onerous debt load that can limit its ability to invest for the future.


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: lauren hirsch, lauren thomas
Keywords: news, cnbc, companies, nordstrom, low, shares, retail, offer, nordstroms, lower, company, retailer, nearly, 50, 20, rejected, store, roughly, sector, trading, stores, share


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The housing market is about to shift in a bad way for buyers

Competition in the housing market finally began to cool this year, as listings multiplied and price gains moderated. The housing shortage that fueled competition and resulted in sky-high price gains throughout 2017 and the first half of 2018 is on the horizon yet again. Supply is soon expected to drop and potentially hit a new record low, according to realtor.com, after increasing in the second half of last year. Inventory gains began to slow this year from 6.4% growth in January to 5.8% in Febr


Competition in the housing market finally began to cool this year, as listings multiplied and price gains moderated. The housing shortage that fueled competition and resulted in sky-high price gains throughout 2017 and the first half of 2018 is on the horizon yet again. Supply is soon expected to drop and potentially hit a new record low, according to realtor.com, after increasing in the second half of last year. Inventory gains began to slow this year from 6.4% growth in January to 5.8% in Febr
The housing market is about to shift in a bad way for buyers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: diana olick
Keywords: news, cnbc, companies, housing, inventory, buyers, rates, low, months, market, competition, according, gains, price, record, bad, shift, hit, way


The housing market is about to shift in a bad way for buyers

Competition in the housing market finally began to cool this year, as listings multiplied and price gains moderated. Bidding wars became less frequent and spring sales perked up a bit. Well, forget that. The heat is on yet again.

The housing shortage that fueled competition and resulted in sky-high price gains throughout 2017 and the first half of 2018 is on the horizon yet again. Supply is soon expected to drop and potentially hit a new record low, according to realtor.com, after increasing in the second half of last year.

The number of for-sale listings was up 2.8% annually in June, but that was down from May’s 2.9% gain. Inventory gains began to slow this year from 6.4% growth in January to 5.8% in February. Gains continued to slow throughout the spring and supply is now expected to flatten over the next three months and could hit its first decline in October of this year, according to realtor.com

“It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we’ve ever seen. If the trend we’re seeing continues, overall inventory could near record lows by early next year,” said Danielle Hale, chief economist for realtor.com. “So far there’s been a lackluster response to low mortgage rates, but if they do spark fresh buyer interest later in the year, U.S. inventory could set new record lows this winter.”

Part of the issue is that fewer owners are now listing their homes for sale, and there are several reasons why.

“It’s likely a combination of rate-lock, recently decreased consumer confidence and older generations choosing to age in place,” added Hale.

Mortgage rates are still pretty low, but so many homeowners refinanced their loans when rates were even lower that moving would mean paying more for the same mortgage, on top of paying more for a move-up home. Even those sellers who want to downsize would be moving into a pricier market.

Home price gains had been shrinking, but the gains increased again in June for the first time in 14 months, according to CoreLogic.


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: diana olick
Keywords: news, cnbc, companies, housing, inventory, buyers, rates, low, months, market, competition, according, gains, price, record, bad, shift, hit, way


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dollar falls to one-week low vs yen on Fed rate cut bets

The dollar slipped to a one-week low against the Japanese yen on Wednesday, undermined over the China-U.S. trade deal, and the possibility of fresh tariff hostilities with Europe. U.S. economic reports on Wednesday were mixed and did not really change the dollar’s trading direction. In mid-morning trading, the dollar dipped 0.1% against the yen to 107.75, after earlier falling to a one-week low of 107.54 . Against a basket of six currencies, the dollar eased from Tuesday’s two-week highs to trad


The dollar slipped to a one-week low against the Japanese yen on Wednesday, undermined over the China-U.S. trade deal, and the possibility of fresh tariff hostilities with Europe. U.S. economic reports on Wednesday were mixed and did not really change the dollar’s trading direction. In mid-morning trading, the dollar dipped 0.1% against the yen to 107.75, after earlier falling to a one-week low of 107.54 . Against a basket of six currencies, the dollar eased from Tuesday’s two-week highs to trad
Dollar falls to one-week low vs yen on Fed rate cut bets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-03
Keywords: news, cnbc, companies, rate, yields, fed, possibility, trade, revised, showed, bets, cut, yen, trading, falls, oneweek, dollar, vs, low


Dollar falls to one-week low vs yen on Fed rate cut bets

The dollar slipped to a one-week low against the Japanese yen on Wednesday, undermined over the China-U.S. trade deal, and the possibility of fresh tariff hostilities with Europe.

Volume was light ahead of the U.S. Independence Day holiday on Thursday. U.S. economic reports on Wednesday were mixed and did not really change the dollar’s trading direction.

Data from payrolls processor ADP showed U.S. companies added 102,000 private sector jobs in June, much higher than the revised 41,000 jobs in May. But the June figure was lower than the 140,000 analysts had forecast.

Paul Ashworth, chief U.S. economist at Capital Economics, said the ADP report suggests the deterioration in the broader economy has spread to the labor market.

“Even with the U.S.-China trade talks back on track, for now at least, the evidence of a slowdown in employment growth should still be enough to persuade the Federal Reserve to cut rates in either July or September, but expectations of a 50 basis-point cut seem misplaced,” he added.

Wednesday’s data also showed U.S. weekly jobless claims fell more than expected to a seasonally adjusted 221,000, while the U.S. trade deficit in May widened to $55.5 billion from April’s revised $51.2 billion.

In mid-morning trading, the dollar dipped 0.1% against the yen to 107.75, after earlier falling to a one-week low of 107.54 .

The dollar-yen pair has become more sensitive to trade developments. Investors have grown more skeptical about the possibility of a speedy resolution to the trade war, especially given U.S. President Donald Trump’s comments that any deal would have to be tilted in favour of the United States. A

gainst a basket of six currencies, the dollar eased from Tuesday’s two-week highs to trade little changed on Wednesday at 96.736. The index earlier fell as bond yields extended the previous day’s decline, with 10-year yields hitting 2-1/2-year lows below 1.94%.


Company: cnbc, Activity: cnbc, Date: 2019-07-03
Keywords: news, cnbc, companies, rate, yields, fed, possibility, trade, revised, showed, bets, cut, yen, trading, falls, oneweek, dollar, vs, low


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dollar trims gains as trade optimism fades, Aussie near recent lows post RBA cut

The dollar gave up gains on Tuesday as investors curbed earlier enthusiasm about U.S.-China trade progress while the Australian currency barely budged from recent lows after a central bank rate cut decision offered few clues about future easing. “The tone from the RBA was not that pessimistic, which gives the impression they are somewhat reluctant to cut rates further,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo. In a statement the central said it would lower r


The dollar gave up gains on Tuesday as investors curbed earlier enthusiasm about U.S.-China trade progress while the Australian currency barely budged from recent lows after a central bank rate cut decision offered few clues about future easing. “The tone from the RBA was not that pessimistic, which gives the impression they are somewhat reluctant to cut rates further,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo. In a statement the central said it would lower r
Dollar trims gains as trade optimism fades, Aussie near recent lows post RBA cut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-02
Keywords: news, cnbc, companies, low, rba, expectations, optimism, gains, cut, recent, rate, trims, fades, uschina, lows, trade, post, near, central, dollar, rates, lower


Dollar trims gains as trade optimism fades, Aussie near recent lows post RBA cut

The dollar gave up gains on Tuesday as investors curbed earlier enthusiasm about U.S.-China trade progress while the Australian currency barely budged from recent lows after a central bank rate cut decision offered few clues about future easing.

The yuan also shed its early rise to trade lower on the day after U.S. President Donald Trump said any deal with China would need to be somewhat tilted in favor of the United States, suggesting negotiations may not proceed smoothly.

The U.S. dollar index against a basket of six major currencies earlier rose to its highest in a week but retreated as doubt set in about the resumption of U.S.-China efforts to resolve their trade war.

Market focus now shifts to Reserve Bank of Australia Governor Philip Lowe, who speaks to business leaders in the northern Australian city of Darwin at 0930 GMT, which could provide clues on how much further interest rates could fall.

“The tone from the RBA was not that pessimistic, which gives the impression they are somewhat reluctant to cut rates further,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo.

“Short positions in the Aussie were already so heavy. Now we’re in a situation where the main risk is for the Aussie to be bought back.”

The Australian dollar was up 0.3% at $0.6983 on Tuesday after slumping 0.9% on Monday, its biggest decline since April 24.

The RBA lowered interest rates by 25 basis points to a record low of 1.00%, matching economists’ expectations. In a statement the central said it would lower rates again “if needed,” a phrase some analysts took to mean an additional rate cut is less certain than before.

The U.S. dollar index was little changed at 96.790 on Tuesday having posted its biggest increase since March 7 on Monday on hopes Beijing and Washington were making headway in their trade negotiations.

The United States and China have already imposed tariffs of up to 25% on hundreds of billions of dollars of each other’s goods in a dispute about China’s trade practices that has lasted nearly a year.

The drawn out trade war has slowed global growth and pushed many central banks to cut interest rates to support their economies.

The offshore yuan gave up early gains to trade around 0.2% lower at 6.8690 versus the dollar, on course for its biggest daily decline in a week.

The global investor spotlight will move to U.S. non-farm payrolls data due on Friday, which economists expect to have risen by 160,000 in June, compared with a 75,000 increase in May.

However, analysts expect the dollar will struggle to make substantial gains given expectations the Federal Reserve will cut rates due to low inflation and worries about the U.S.-China trade war.

“It would be a mistake to view the rise in the dollar on Monday as the beginning of a broad-based rally,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.

“Treasury yields are capped around 2%, because there are still expectations for Fed rate cuts.”

The euro briefly fell to an eight-day low of $1.1275 before trading little changed at $1.1289. The common currency fell 0.7% on Monday, its biggest-one day decline since March as disappointing economic data triggered a tumble in bond yields and boosted expectations for a European Central Bank rate cut.


Company: cnbc, Activity: cnbc, Date: 2019-07-02
Keywords: news, cnbc, companies, low, rba, expectations, optimism, gains, cut, recent, rate, trims, fades, uschina, lows, trade, post, near, central, dollar, rates, lower


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Asia stocks mostly edge up as Australia’s central bank slashes rates to new all-time low

Stocks in Asia mostly edged up on Tuesday, as the Reserve Bank of Australia (RBA) slashed its cash rate to a new all-time low. “Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. Blythe added that a third rate cut was likely “coming along,” with a cash rate lower than 1% likely to come before the end of 2019. That’s a question “particularly” for the U.S. Federal Reserve, he said, ahead of the central bank’s monetary policy meeting later


Stocks in Asia mostly edged up on Tuesday, as the Reserve Bank of Australia (RBA) slashed its cash rate to a new all-time low. “Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. Blythe added that a third rate cut was likely “coming along,” with a cash rate lower than 1% likely to come before the end of 2019. That’s a question “particularly” for the U.S. Federal Reserve, he said, ahead of the central bank’s monetary policy meeting later
Asia stocks mostly edge up as Australia’s central bank slashes rates to new all-time low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-02  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, rate, rates, trade, central, alltime, cash, bank, reserve, trading, australias, edge, rba, asia, slashes, meeting, low, banks


Asia stocks mostly edge up as Australia's central bank slashes rates to new all-time low

Over in Australia, the S&P/ASX 200 gained fractionally to end its trading day at 6,653.20 as most sectors advanced.

The Nikkei 225 in Japan added 0.11% to close at 21,754.27, while the Topix rose 0.31% to finish its trading day at 1,589.84. In South Korea, however, the Kospi slipped 0.36% close at 2,122.02.

Hong Kong’s Hang Seng index , which returned to trade after a holiday on Monday, jumped 1.26%, as of 3:16 p.m. HK/SIN.

Mainland Chinese stocks were mostly higher on the day, with the Shenzhen component gaining 0.16% to 9,545.52 and the Shenzhen composite adding 0.159% to 1,619.12. The Shanghai composite , on the other hand, was just below the flatline at 3,043.94.

Stocks in Asia mostly edged up on Tuesday, as the Reserve Bank of Australia (RBA) slashed its cash rate to a new all-time low.

The RBA announced earlier on Tuesday that it was cutting its cash rate by 25 basis points to a a new all-time low of 1%, marking its second straight month of easing after it slashed rates in June.

“Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target,” RBA Governor Philip Lowe said in a statement.

Following the widely expected decision by the Australian central bank, the Australian dollar changed hands at $0.6986, still below levels above $0.700 seen yesterday.

“If you’re focused on trying to squeeze out that excess capacity in the labor market, get a bit of wages growth going and … eventually getting back to your inflation target then … certainly a rate cut is the major weapon in the Reserve Bank’s arsenal and they’ve deployed it for the last two months,” Michael Blythe, chief economist at Commonwealth Bank, told CNBC’s “Capital Connection” minutes following the RBA announcement.

Blythe added that a third rate cut was likely “coming along,” with a cash rate lower than 1% likely to come before the end of 2019.

Meanwhile, investors cheered recent developments over the weekend on the U.S.-China trade front, with the two countries’ presidents agreeing not to slap new duties on each others goods after meeting at the G-20 summit in Osaka, Japan. U.S. President Donald Trump said Monday that trade talks between the two countries have “already begun. ”

“I think the question for a lot of central banks now after the G-20 is, how does this truce between China and Trump evolve?,” Wayne Gordon, commodity, rates and foreign exchange analyst at UBS Global Wealth Management, told CNBC’s “Street Signs” on Tuesday.

“If in the end there is a deal that comes of this, I think it’s still highly uncertain but if indeed there is, central banks may not be as worried about growth, particularly on the trade side, as what they would have been otherwise,” Gordon said.

That’s a question “particularly” for the U.S. Federal Reserve, he said, ahead of the central bank’s monetary policy meeting later this month. In June, the Fed opened the door to a possible future rate cut as it kept interest rates steady.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.759 after rising from levels below 96.6 in the previous session. The Japanese yen traded at 108.31 against the dollar following lows above 108.4 seen yesterday.

Oil prices recovered from an earlier slip to rise in the afternoon of Asian trading hours, as international benchmark Brent crude futures added 0.26% to $65.23 per barrel, while U.S. crude futures gained 0.14% to $59.17 per barrel.

The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend production cuts by nine months. The deal is subject to approval from non-OPEC allies, such as Russia, at a meeting on Tuesday.

— CNBC’s Fred Imbert contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-07-02  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, rate, rates, trade, central, alltime, cash, bank, reserve, trading, australias, edge, rba, asia, slashes, meeting, low, banks


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post