Cramer says the bear market in stocks ended on Christmas Eve

It appears that investors have failed to realize that the “bear market” in stocks ended after Christmas Eve’s washout on Wall Street, CNBC’s Jim Cramer contended Monday. “We came through a bear market,” Cramer said on “Squawk on the Street,” shortly after the S&P 500 opened lower. “I think people are still oblivious that the bear market ended on that horrible half-day” Dec. 24 session. Stocks last month plunged in their worst Christmas Eve trading ever, with the S&P 500 sinking 2.7 percent and s


It appears that investors have failed to realize that the “bear market” in stocks ended after Christmas Eve’s washout on Wall Street, CNBC’s Jim Cramer contended Monday. “We came through a bear market,” Cramer said on “Squawk on the Street,” shortly after the S&P 500 opened lower. “I think people are still oblivious that the bear market ended on that horrible half-day” Dec. 24 session. Stocks last month plunged in their worst Christmas Eve trading ever, with the S&P 500 sinking 2.7 percent and s
Cramer says the bear market in stocks ended on Christmas Eve Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, eve, street, neutral, 500, recent, nearly, ended, stocks, christmas, sp, powell, bear, market, cramer, rates


Cramer says the bear market in stocks ended on Christmas Eve

It appears that investors have failed to realize that the “bear market” in stocks ended after Christmas Eve’s washout on Wall Street, CNBC’s Jim Cramer contended Monday.

“We came through a bear market,” Cramer said on “Squawk on the Street,” shortly after the S&P 500 opened lower. “I think people are still oblivious that the bear market ended on that horrible half-day” Dec. 24 session.

Stocks last month plunged in their worst Christmas Eve trading ever, with the S&P 500 sinking 2.7 percent and slipping into a bear market, which is defined as a decline in an index or asset of 20 percent or more from recent highs.

Since then, the S&P 500 has rallied nearly 10.5 percent through Friday’s close. However, many analysts believe the market could still retest its lows, especially as earnings season kicks in.

Cramer has said he does not use the traditional definitions of a bear market and a correction — measured as a drop of 10 percent or more from recent highs — and instead focuses on individual stocks.

Cramer blames Jerome Powell for the stock market’s losses late last year, arguing the Federal Reserve chairman stoked fears after his comments on Oct. 3 that rates were a “long way” from so-called neutral. The following month, Powell appeared to walk back those remarks, saying rates are “just below” neutral. Central bankers increased rates four times in 2018, and projected two more hikes this year.

However, on Jan. 4, Powell said central bankers “will be patient” on rates given continued muted inflation, touching off a strong rally of nearly 3.5 percent on the S&P 500 that day, and increases in four out of the next five sessions as of Friday.


Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, eve, street, neutral, 500, recent, nearly, ended, stocks, christmas, sp, powell, bear, market, cramer, rates


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The Fed is in a ‘sweet spot’ to bring rates back to neutral, says former governor

‘The Fed is really in a sweet spot right now’ 7 Hours Ago | 02:29The Federal Reserve is well positioned to bring interest rates in the U.S. back to neutral levels, and it may need to raise rates two or three more times, former Fed Governor Robert Heller said. The Fed on Wednesday raised its benchmark interest rates by 25 basis points — its fourth hike in 2018 and the ninth since December 2015 when it started rolling back post-crisis stimulus. But for Heller, who said he favors “even tighter poli


‘The Fed is really in a sweet spot right now’ 7 Hours Ago | 02:29The Federal Reserve is well positioned to bring interest rates in the U.S. back to neutral levels, and it may need to raise rates two or three more times, former Fed Governor Robert Heller said. The Fed on Wednesday raised its benchmark interest rates by 25 basis points — its fourth hike in 2018 and the ninth since December 2015 when it started rolling back post-crisis stimulus. But for Heller, who said he favors “even tighter poli
The Fed is in a ‘sweet spot’ to bring rates back to neutral, says former governor Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: yen nee lee
Keywords: news, cnbc, companies, heller, fed, interest, governor, sweet, spot, rates, bring, right, neutral, really, exactly


The Fed is in a 'sweet spot' to bring rates back to neutral, says former governor

‘The Fed is really in a sweet spot right now’ 7 Hours Ago | 02:29

The Federal Reserve is well positioned to bring interest rates in the U.S. back to neutral levels, and it may need to raise rates two or three more times, former Fed Governor Robert Heller said.

The Fed on Wednesday raised its benchmark interest rates by 25 basis points — its fourth hike in 2018 and the ninth since December 2015 when it started rolling back post-crisis stimulus. The central bank projected it would enact two interest rates increases in 2019, which was down from a previous forecast of three, but that wasn’t enough to appease investors who had hoped the Fed would ease even further off its tightening path.

But for Heller, who said he favors “even tighter policy,” the Fed did exactly what it had to.

“The Fed is really in a sweet spot right now: Growth is good, unemployment is very low at 3.7 percent and they’re roughly at their target of 2 percent inflation. So, what could be better?” Heller told CNBC’s “Squawk Box” on Thursday.

“They have to continue on their path of taking away the accommodation and get into a neutral stance and that’s exactly what they did,” he added.

Heller was a member of the Fed’s Board of Governors from 1986 until 1989.


Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: yen nee lee
Keywords: news, cnbc, companies, heller, fed, interest, governor, sweet, spot, rates, bring, right, neutral, really, exactly


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Shipping giant Maersk lays out plans to be carbon neutral by 2050

Global shipping business A.P. In an announcement Tuesday, Maersk said that to achieve its target, carbon neutral vessels would need to be commercially viable by 2030. In 2012, international shipping was responsible for an estimated 796 million tons of CO2 emissions — around 2.2 percent of total global CO2 emissions that year, according to the International Maritime Organization. Several ideas and innovations have been developed for the shipping industry over the last few years. Finnish shipping


Global shipping business A.P. In an announcement Tuesday, Maersk said that to achieve its target, carbon neutral vessels would need to be commercially viable by 2030. In 2012, international shipping was responsible for an estimated 796 million tons of CO2 emissions — around 2.2 percent of total global CO2 emissions that year, according to the International Maritime Organization. Several ideas and innovations have been developed for the shipping industry over the last few years. Finnish shipping
Shipping giant Maersk lays out plans to be carbon neutral by 2050 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: anmar frangoul, jerry lampen, afp, getty images
Keywords: news, cnbc, companies, maersk, neutral, shipping, business, viking, plans, emissions, sail, 2050, carbon, added, rotor, industry, co2, giant, lays


Shipping giant Maersk lays out plans to be carbon neutral by 2050

Global shipping business A.P. Moller-Maersk has set itself the goal of reaching “carbon neutrality” by 2050.

In an announcement Tuesday, Maersk said that to achieve its target, carbon neutral vessels would need to be commercially viable by 2030.

The company said its relative carbon dioxide (CO2) emissions had already been cut by 46 percent against a 2007 baseline, adding that this was approximately 9 percent more than the industry average.

In 2012, international shipping was responsible for an estimated 796 million tons of CO2 emissions — around 2.2 percent of total global CO2 emissions that year, according to the International Maritime Organization.

“The only possible way to achieve the so-much-needed decarbonization in our industry is by fully transforming to new carbon neutral fuels and supply chains,” Soren Toft, A.P. Moller-Maersk’s chief operating officer, said in a statement.

Toft added that the next five to 10 years would be crucial. “We will invest significant resources for innovation and fleet technology to improve the technical and financial viability of decarbonized solutions,” he said.

Toft added that the last four years had seen Maersk invest roughly $1 billion and engage over 50 engineers per year in the development and deployment of “energy efficient solutions.” Going forward, he added, the business could not do this alone.

Several ideas and innovations have been developed for the shipping industry over the last few years.

A passenger ship, for example, has been fitted with a rotor sail that enables it to use wind power during trips between Finland and Sweden.

Finnish shipping business Viking Line’s M/S Viking Grace makes use of a 24-meter-tall cylindrical rotor sail developed by Norsepower Oy, another Finnish company.

The sail uses something called the “Magnus effect” for propulsion. As the rotor spins, passing air flows with a lower pressure on one side compared to the other, driving the ship forward.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: anmar frangoul, jerry lampen, afp, getty images
Keywords: news, cnbc, companies, maersk, neutral, shipping, business, viking, plans, emissions, sail, 2050, carbon, added, rotor, industry, co2, giant, lays


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

JP Morgan’s market-moving strategist says rally has further to go: ‘Pain trade is on the upside’

Despite autumn fears of slowing economic growth, an aggressive central bank and a worsening trade dispute, Kolanovic’s bullish bet has been justified thus far. Stocks have rallied over the past month, with the broad S&P 500 up 2.2 percent and the Dow Jones Industrial Average climbing 2 percent. Last week, Fed Chairman Jerome Powell said that he sees the central bank’s benchmark interest rate near to a neutral level. “Our view is that despite likely additional volatility and more ups and downs, t


Despite autumn fears of slowing economic growth, an aggressive central bank and a worsening trade dispute, Kolanovic’s bullish bet has been justified thus far. Stocks have rallied over the past month, with the broad S&P 500 up 2.2 percent and the Dow Jones Industrial Average climbing 2 percent. Last week, Fed Chairman Jerome Powell said that he sees the central bank’s benchmark interest rate near to a neutral level. “Our view is that despite likely additional volatility and more ups and downs, t
JP Morgan’s market-moving strategist says rally has further to go: ‘Pain trade is on the upside’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: thomas franck, ronaldo schemidt, afp, getty images
Keywords: news, cnbc, companies, economic, morgans, volatility, upside, market, fed, rally, rallied, way, marketmoving, pain, rate, strategist, trade, jp, neutral, china


JP Morgan's market-moving strategist says rally has further to go: 'Pain trade is on the upside'

Kolanovic, whose calls have moved the stock market in the past, has cited a slew of reasons for the year-end rally, including a decline in volatility and strong earnings in addition to forecasts on Fed and trade policy.

Despite autumn fears of slowing economic growth, an aggressive central bank and a worsening trade dispute, Kolanovic’s bullish bet has been justified thus far. Stocks have rallied over the past month, with the broad S&P 500 up 2.2 percent and the Dow Jones Industrial Average climbing 2 percent.

The indexes both rallied more than 1 percent on Monday.

Also as he predicted weeks ago, much of the recent gains have been the direct result of changes at the Fed as well as a temporary reprieve in the trade relations between the U.S. and China.

Last week, Fed Chairman Jerome Powell said that he sees the central bank’s benchmark interest rate near to a neutral level. He also said that the Fed’s policymaking arm is not on a preset hiking path and could adjust its plans as needed.

“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth,” Powell told the Economic Club of New York last week.

Some market participants viewed those comments as a stark contrast to his comments made in October, when he said the federal funds rate was a long way from neutral; stocks posted steep losses at that time.

The U.S. and China have also appeared to soothe markets after President Donald Trump and President Xi Jinping agreed to pause tariffs amid trade discussions. While many viewed the agreement at the G-20 summit in Buenos Aires, Argentina, as a petty way to delay debate over fundamental differences, markets rallied Monday in light of the compromise.

Both the S&P 500 and the Dow are well out of correction levels and hovered 4 to 5 percent below all-time highs Monday afternoon.

For his part, Kolanovic took a more optimistic tact on the truce, arguing that the accord is another sign that the spat may be about to finish.

“Our view is that despite likely additional volatility and more ups and downs, the ill-conceived trade war with China is ending,” he wrote. “We believe, simply speaking, that the administration cannot afford a falling market, large trade related layoffs, and fleeing donors in a pre-election year.”

Ten percent tariffs on $200 billion worth of goods exported from China will remain in effect as representatives for each nation discuss intellectual property rights, the trade deficit and other economic issues. Should Washington and Beijing fail to reach a deal by March 1, the tax rate on Chinese imports will rise to 25 percent.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: thomas franck, ronaldo schemidt, afp, getty images
Keywords: news, cnbc, companies, economic, morgans, volatility, upside, market, fed, rally, rallied, way, marketmoving, pain, rate, strategist, trade, jp, neutral, china


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The Fed is being ‘judiciously cautious,’ says Daiwa strategist

The Fed is being ‘judiciously cautious,’ says Daiwa strategist11 Hours AgoFederal Reserve Chairman Jerome Powell said he considers the fed funds rate to be near a neutral level. Paul Kitney of Daiwa Capital Markets says this is because the central bank’s own internal projection of expected inflation has dropped.


The Fed is being ‘judiciously cautious,’ says Daiwa strategist11 Hours AgoFederal Reserve Chairman Jerome Powell said he considers the fed funds rate to be near a neutral level. Paul Kitney of Daiwa Capital Markets says this is because the central bank’s own internal projection of expected inflation has dropped.
The Fed is being ‘judiciously cautious,’ says Daiwa strategist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-02
Keywords: news, cnbc, companies, strategist11, daiwa, paul, fed, cautious, strategist, powell, rate, reserve, judiciously, neutral, projection, near


The Fed is being 'judiciously cautious,' says Daiwa strategist

The Fed is being ‘judiciously cautious,’ says Daiwa strategist

11 Hours Ago

Federal Reserve Chairman Jerome Powell said he considers the fed funds rate to be near a neutral level. Paul Kitney of Daiwa Capital Markets says this is because the central bank’s own internal projection of expected inflation has dropped.


Company: cnbc, Activity: cnbc, Date: 2018-12-02
Keywords: news, cnbc, companies, strategist11, daiwa, paul, fed, cautious, strategist, powell, rate, reserve, judiciously, neutral, projection, near


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Fed Chair Jerome Powell survives a critical week, faces bigger tests

Minutes from the November Federal Open Market Committee meeting further indicated that officials will stress the importance of data. “In fact, he walked back what he said on Oct. 3,” said Quincy Krosby, chief market strategist at Prudential Financial. “He speaks very clearly, so it is not an issue of the market misunderstanding what he said. Less definitive is what Powell meant when he said interest rates “remain just below the broad range of estimates of the level that would be neutral for the


Minutes from the November Federal Open Market Committee meeting further indicated that officials will stress the importance of data. “In fact, he walked back what he said on Oct. 3,” said Quincy Krosby, chief market strategist at Prudential Financial. “He speaks very clearly, so it is not an issue of the market misunderstanding what he said. Less definitive is what Powell meant when he said interest rates “remain just below the broad range of estimates of the level that would be neutral for the
Fed Chair Jerome Powell survives a critical week, faces bigger tests Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: jeff cox, andrew harrer, bloomberg, getty images, adam jeffery
Keywords: news, cnbc, companies, market, critical, bigger, faces, survives, neutral, meant, powell, indicated, fed, week, chair, tests, range, forecast, estimates, jerome, economists


Fed Chair Jerome Powell survives a critical week, faces bigger tests

But the perception that Powell does not hold reflexively hawkish views, and is willing to adapt as the data roll in, seemed enough to convince investors that — at least for now — they don’t have to fear the Fed.

Minutes from the November Federal Open Market Committee meeting further indicated that officials will stress the importance of data.

“In fact, he walked back what he said on Oct. 3,” said Quincy Krosby, chief market strategist at Prudential Financial. “He speaks very clearly, so it is not an issue of the market misunderstanding what he said. He said that.”

Less definitive is what Powell meant when he said interest rates “remain just below the broad range of estimates of the level that would be neutral for the economy.”

The market immediately took “just below” to mean that the current benchmark Fed rate — targeted at 2 percent to 2.25 percent — is near neutral, and the central bank may want to halt or slow the pace of increases. A closer reading, though, indicated that the chairman only meant it was below the lower end of estimates from Fed policymakers, who put neutral in a range of 2.5 to 3 percent.

Distinguishing the remarks could be key for the market as the calendar turns to 2019.

Goldman Sachs economists said the market “misleadingly shortened Powell’s formulation” on neutral. Still, the bank conceded that its 2019 forecast might be in some jeopardy.

“Looking beyond the next few weeks, recent events have increased the downside risks to our baseline forecast of quarterly hikes through end-2019,” wrote economists Daan Struyven and Jan Hatzius.


Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: jeff cox, andrew harrer, bloomberg, getty images, adam jeffery
Keywords: news, cnbc, companies, market, critical, bigger, faces, survives, neutral, meant, powell, indicated, fed, week, chair, tests, range, forecast, estimates, jerome, economists


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Europe rallies after Fed chair signals rates are nearing neutral; Britvic shares up 6%

Basic resources led the gains, up by more than 2 percent as investors wait for a G-20 summit due to start Friday. President Donald Trump and China President Xi Jinping are due to meet on the sidelines in an attempt to improve their trade relations. But the biggest driver of the stock market on Thursday was a highly-anticipated speech from the chair of the Federal Reserve. The expectation that the Fed is likely to raise rates to a lower level than previously expected is a positive for shares. In


Basic resources led the gains, up by more than 2 percent as investors wait for a G-20 summit due to start Friday. President Donald Trump and China President Xi Jinping are due to meet on the sidelines in an attempt to improve their trade relations. But the biggest driver of the stock market on Thursday was a highly-anticipated speech from the chair of the Federal Reserve. The expectation that the Fed is likely to raise rates to a lower level than previously expected is a positive for shares. In
Europe rallies after Fed chair signals rates are nearing neutral; Britvic shares up 6% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: silvia amaro, alexandra gibbs
Keywords: news, cnbc, companies, rate, president, rallies, interest, stocks, fed, chair, powell, neutral, europe, nearing, rose, shares, britvic, signals, uk, level, rates


Europe rallies after Fed chair signals rates are nearing neutral; Britvic shares up 6%

The pan-European Stoxx 600 index rose 0.6 percent with nearly every sector in the black. Basic resources led the gains, up by more than 2 percent as investors wait for a G-20 summit due to start Friday. President Donald Trump and China President Xi Jinping are due to meet on the sidelines in an attempt to improve their trade relations.

But the biggest driver of the stock market on Thursday was a highly-anticipated speech from the chair of the Federal Reserve. Speaking in New York on Wednesday, Jerome Powell said that he deems the Fed’s benchmark interest rate to be close to a neutral level; which marks a step away from comments made in recent months.

Back in October, Powell stated that the U.S. was a “long way” from hitting neutral, when it came to interest rates — which indicated to markets at the time that more rate hikes were on the horizon. Following Powell’s comments on Wednesday, Wall Street saw stocks leap with the Dow seeing its biggest rally in eight months, closing up over 600 points up and supported Asian trading too. The expectation that the Fed is likely to raise rates to a lower level than previously expected is a positive for shares.

Sticking with central banking news, the Bank of England claimed that a “disorderly” departure from the European Union, would put the U.K. economy under severe pressure and could be more painful for the U.K. than the global financial crisis was.

In individual stocks news, Britvic shares rose more than 6 percent after it said its sugarless drinks had boosted sales.


Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: silvia amaro, alexandra gibbs
Keywords: news, cnbc, companies, rate, president, rallies, interest, stocks, fed, chair, powell, neutral, europe, nearing, rose, shares, britvic, signals, uk, level, rates


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

US stock futures pull back after Dow notched strong triple-digit gain on Wednesday

Wall Street saw a stellar session on Wednesday, with the Dow Jones Industrial Average closing up over 600 points following a speech by the chair of the Federal Reserve. Consequently, Powell’s comments on Wednesday caused stocks to rise both domestically and overseas. Investors will be keeping a close eye on this release, to see if there are any further clues as to where monetary policy is heading. A number of Fed officials are also slated to speak in Boston, Massachusetts on Thursday. Elsewhere,


Wall Street saw a stellar session on Wednesday, with the Dow Jones Industrial Average closing up over 600 points following a speech by the chair of the Federal Reserve. Consequently, Powell’s comments on Wednesday caused stocks to rise both domestically and overseas. Investors will be keeping a close eye on this release, to see if there are any further clues as to where monetary policy is heading. A number of Fed officials are also slated to speak in Boston, Massachusetts on Thursday. Elsewhere,
US stock futures pull back after Dow notched strong triple-digit gain on Wednesday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: fred imbert, alexandra gibbs, spencer platt, getty images
Keywords: news, cnbc, companies, rate, strong, york, stock, place, gain, powell, investors, tripledigit, close, futures, interest, neutral, comments, pull, notched, federal, dow


US stock futures pull back after Dow notched strong triple-digit gain on Wednesday

Wall Street saw a stellar session on Wednesday, with the Dow Jones Industrial Average closing up over 600 points following a speech by the chair of the Federal Reserve. On Wednesday, Jerome Powell said at an event in New York that he deems the Fed’s benchmark interest rate to be close to a neutral level; which marks a step away from comments made in recent months.

Back in October, Powell stated that the U.S. was a “long way” from hitting neutral, when it came to interest rates — which indicated to markets that more rate hikes were on the horizon. Consequently, Powell’s comments on Wednesday caused stocks to rise both domestically and overseas.

Sticking with the U.S. central bank, minutes from the last Federal Open Market Committee meeting, which took place earlier this month, are due out at 2 p.m. ET. Investors will be keeping a close eye on this release, to see if there are any further clues as to where monetary policy is heading. A number of Fed officials are also slated to speak in Boston, Massachusetts on Thursday.

Elsewhere, investors continue to look ahead to a G-20 summit in Argentina, which takes place this Friday and Saturday. Trade relations between the U.S. and China will be a key topic up for discussion, especially since both nations’ leaders will be attending the event.

CNBC’s Jeff Cox contributed to this report


Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: fred imbert, alexandra gibbs, spencer platt, getty images
Keywords: news, cnbc, companies, rate, strong, york, stock, place, gain, powell, investors, tripledigit, close, futures, interest, neutral, comments, pull, notched, federal, dow


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

10-year Treasury yield dips below 3% after Powell says interest rates are near neutral

The yield on the benchmark 10-year Treasury note dipped under 3 percent Thursday morning after Federal Reserve Chairman Jerome Powell said he believes interest rates are close to a neutral level. Treasurys rallied overnight, with the 10-year yield touching 2.995 percent; the rate was last seen at 3.021 percent at 7:19 a.m. The yield on the 30-year Treasury bond slipped to 3.311 percent and the 2-year inched lower to 2.794 percent. In Powell’s speech on Wednesday he said that he sees the Fed’s be


The yield on the benchmark 10-year Treasury note dipped under 3 percent Thursday morning after Federal Reserve Chairman Jerome Powell said he believes interest rates are close to a neutral level. Treasurys rallied overnight, with the 10-year yield touching 2.995 percent; the rate was last seen at 3.021 percent at 7:19 a.m. The yield on the 30-year Treasury bond slipped to 3.311 percent and the 2-year inched lower to 2.794 percent. In Powell’s speech on Wednesday he said that he sees the Fed’s be
10-year Treasury yield dips below 3% after Powell says interest rates are near neutral Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: thomas franck
Keywords: news, cnbc, companies, rate, fed, powell, yield, 10year, growth, treasury, interest, neutral, near, level, rates, dips


10-year Treasury yield dips below 3% after Powell says interest rates are near neutral

The yield on the benchmark 10-year Treasury note dipped under 3 percent Thursday morning after Federal Reserve Chairman Jerome Powell said he believes interest rates are close to a neutral level.

Treasurys rallied overnight, with the 10-year yield touching 2.995 percent; the rate was last seen at 3.021 percent at 7:19 a.m. ET. The yield on the 30-year Treasury bond slipped to 3.311 percent and the 2-year inched lower to 2.794 percent. Bond yields move inversely to prices.

In Powell’s speech on Wednesday he said that he sees the Fed’s benchmark interest rate to be near to a neutral level; which marks a change from comments made in previous months.

In October, the Fed chair stated that the U.S. was a “long way” from hitting neutral, when it came to interest rates — which suggested to markets that more rate hikes were on the horizon. Following Powell’s comments on Wednesday, short-term Treasury yields came under pressure.

“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth,” Powell told the Economic Club of New York.

Powell’s address followed that of Fed Vice Chair Richard Clarida, who on Tuesday said that interest rates are “much closer” to a level that neither stimulates nor restricts growth.

A growing number of central bank officials, including Powell and Clarida, have emphasized the importance of the Fed’s reliance on financial data when considering further increases to the federal funds rate. Weakness in financial markets — both in the U.S. and overseas — have led some investors to wonder whether Fed members may temper the pace of their rates hikes.

Tepid inflation, a plunge in oil prices and subsiding effects from President Donald Trump’s tax cuts have also added to concerns that the robust economic growth in the U.S. over the past year may be coming to a end. That could influence Fed policymakers, who may be less apt to hike borrowing costs if gross domestic product growth slows.


Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: thomas franck
Keywords: news, cnbc, companies, rate, fed, powell, yield, 10year, growth, treasury, interest, neutral, near, level, rates, dips


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

European Union aims to become the world’s first climate neutral economy by 2050

The European Union has unveiled a strategy to become the world’s first climate neutral economy by 2050. Its plan, announced Thursday, will include steps such as investing in technological solutions to help lower carbon emissions. The European Commission said the strategy would be applied to almost all EU policies. But that does not mean that to reduce emissions we should sacrifice the livelihoods of Europeans,” he said in a press release. “Over the last years, we have shown how to reduce emissio


The European Union has unveiled a strategy to become the world’s first climate neutral economy by 2050. Its plan, announced Thursday, will include steps such as investing in technological solutions to help lower carbon emissions. The European Commission said the strategy would be applied to almost all EU policies. But that does not mean that to reduce emissions we should sacrifice the livelihoods of Europeans,” he said in a press release. “Over the last years, we have shown how to reduce emissio
European Union aims to become the world’s first climate neutral economy by 2050 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: chloe taylor, daniel roland, afp, getty images
Keywords: news, cnbc, companies, reduce, 2050, aims, emissions, zero, economy, targets, union, strategy, worlds, climate, commission, neutral, european, carbon


European Union aims to become the world's first climate neutral economy by 2050

The European Union has unveiled a strategy to become the world’s first climate neutral economy by 2050.

Its plan, announced Thursday, will include steps such as investing in technological solutions to help lower carbon emissions. The European Commission said the strategy would be applied to almost all EU policies.

Climate neutrality is achieved when carbon emissions are at zero. The Commission said achieving this by 2050 would help it meet the objectives of the Paris Agreement – ensuring temperature increases don’t exceed 2 degrees Celsius and aiming to keep them below 1.5 degrees Celsius.

However, it said the long-term strategy’s purpose was not to set targets, but to establish a vision and direction for member states.

The Commission added that the strategy was designed to be “socially fair” by strengthening the economy and creating jobs.

Joint action will be taken in seven key areas, including energy efficiency, deployment of renewables, and carbon capture and storage to address remaining emissions.

The Commission called on ministers in member states to debate how their domestic policies could be shaped to comply with the strategy.

Maros Sefcovic, the European Commission’s vice president for energy, said the strategy proved that meeting climate change targets did not have to be detrimental to the economy.

“We cannot safely live on a planet with a climate that is out of control. But that does not mean that to reduce emissions we should sacrifice the livelihoods of Europeans,” he said in a press release.

“Over the last years, we have shown how to reduce emissions while creating prosperity, high-quality local jobs, and improving people’s quality of life. Our strategy now shows that by 2050, it is realistic to make Europe both climate neutral and prosperous, while leaving no European and no region behind.”

Commissioner for Transport Violeta Bulc added that the EU’s goal to reach zero emissions by 2050 would see investments in zero-emissions vehicles and smart infrastructure, as well as an increase in the adoption of alternative fuels.


Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: chloe taylor, daniel roland, afp, getty images
Keywords: news, cnbc, companies, reduce, 2050, aims, emissions, zero, economy, targets, union, strategy, worlds, climate, commission, neutral, european, carbon


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post