Google must sway Congress on privacy or face ‘threat’: Cyber expert

“If things do go in that direction, then I think the business model underlying Google, and companies like Google, will be under a more direct threat,” he said on “Closing Bell.” Pichai testified before the House Judiciary Committee, whose members pressed him on a variety of concerns including data privacy, transparency and Google’s development of a censored search engine in China. Shares of Alphabet had a relatively uneventful day, falling 1.5 percent before climbing to close up nearly 1 percent


“If things do go in that direction, then I think the business model underlying Google, and companies like Google, will be under a more direct threat,” he said on “Closing Bell.” Pichai testified before the House Judiciary Committee, whose members pressed him on a variety of concerns including data privacy, transparency and Google’s development of a censored search engine in China. Shares of Alphabet had a relatively uneventful day, falling 1.5 percent before climbing to close up nearly 1 percent
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Company: cnbc, Activity: cnbc, Date: 2018-12-11  Authors: tyler clifford
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Google must sway Congress on privacy or face 'threat': Cyber expert

The tech industry needs to engage the US policy environment, says Facebook policy advisor 12 Hours Ago | 05:01

Google could run into problems with privacy policies if Congress is more receptive to consumer advocates than to the company’s views on regulations, former Facebook privacy and public policy advisor Dipayan Ghosh told CNBC on Tuesday.

“If things do go in that direction, then I think the business model underlying Google, and companies like Google, will be under a more direct threat,” he said on “Closing Bell.”

The comments came after Google CEO Sundar Pichai appeared before a congressional committee, the first time Google parent Alphabet has sent an official to Capitol Hill for a hearing since skipping a Senate hearing on foreign interference in elections earlier this year.

Pichai testified before the House Judiciary Committee, whose members pressed him on a variety of concerns including data privacy, transparency and Google’s development of a censored search engine in China.

Shares of Alphabet had a relatively uneventful day, falling 1.5 percent before climbing to close up nearly 1 percent at $1,061.65.

It’s imperative for Google, Ghosh says, to engage and lobby policymakers and regulators in Washington, D.C., to set the tone for the broader tech industry.

“That is going to be in this industry’s greatest interest because the U.S. policy environment still has the most influence on other policy environments around the whole world,” he said.

When a tech player can get government officials “on the same page as the industry, the better for the industry,” Ghosh added.

David Garrity, who is chief market strategist for Laidlaw & Co. and appeared on the segment with Ghosh, argues it would “pay dividends down the road” if U.S. regulations mirror standards in Europe. The European Union’s General Data Protection Regulation, which went into effect in May, gave consumers in its 28-nation bloc control of their personal data that companies collect.

Similar policies would also bode well for the U.S. to align with the EU and “counterweigh” China’s internet interests.

The approach would “make it easier for technology companies . . . to only have two standards to deal with rather than a fragmentation of standards” in doing business in the American, European and Chinese markets, Garrity said.


Company: cnbc, Activity: cnbc, Date: 2018-12-11  Authors: tyler clifford
Keywords: news, cnbc, companies, threat, congress, ghosh, expert, tech, sway, companies, privacy, cyber, policy, regulations, standards, google, industry, face, data


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Sudden departure of India’s central bank chief raises questions

The sudden departure of India’s central bank governor Urjit Patel on Monday has raised a number of questions about the Reserve Bank of India’s ongoing struggles. Patel was reportedly criticized by the government for the central bank’s relentless push to clean up India’s banking sector. Patel’s resignation comes less than three years after his predecessor Raghuram Rajan was not confirmed for a second term as central bank governor in 2016, likely due to growing tensions between him and India’s gov


The sudden departure of India’s central bank governor Urjit Patel on Monday has raised a number of questions about the Reserve Bank of India’s ongoing struggles. Patel was reportedly criticized by the government for the central bank’s relentless push to clean up India’s banking sector. Patel’s resignation comes less than three years after his predecessor Raghuram Rajan was not confirmed for a second term as central bank governor in 2016, likely due to growing tensions between him and India’s gov
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Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: seema mody, dhiraj singh, bloomberg, getty images
Keywords: news, cnbc, companies, sudden, raises, questions, indias, modi, senior, chief, rbi, policy, say, investors, departure, bank, central, india


Sudden departure of India's central bank chief raises questions

The sudden departure of India’s central bank governor Urjit Patel on Monday has raised a number of questions about the Reserve Bank of India’s ongoing struggles.

The primary focus for investors is whether Patel resigned due to growing pressure from India’s government to lower rates and conduct looser monetary policy as the countdown to next year’s general election kicks off. Patel was reportedly criticized by the government for the central bank’s relentless push to clean up India’s banking sector.

“Investors’ concerns over the independence of the RBI are now higher than ever, but it is unlikely that the government will name another figure with a reputation for independence to lead the Bank,” said Sasha Riser-Kositsky, a senior analyst at Eurasia Group.

Patel’s resignation comes less than three years after his predecessor Raghuram Rajan was not confirmed for a second term as central bank governor in 2016, likely due to growing tensions between him and India’s government.

“Investor confidence will be roiled due to this (losing two independently minded central bank governors within one term is not a great image for foreign investors),” said Akhil Bery, a senior research associate in McLarty Associates’ India & South Asia practice.

Experts say the timing of Patel’s departure from his post as central bank governor comes at a challenging time for two reasons.

India’s government lead by Prime Minister Narendra Modi is facing reelection next year. One factor that helped Modi in 2014 was the backing of investors who supported his pro-business policies. However analysts say Patel’s departure could have an impact on Modi’s image.

On Tuesday, results from four state elections in India will shed light on whether Modi is losing support from his base ahead of the national election in April 2019.

At same time, India is trying to attract new investors and companies while also fending off competition from China. Analysts say any uncertainty in India’s governance of monetary policy could be a setback.

Alyssa Ayres, a senior fellow at the Council on Foreign Relations and author of “Our Time Has Come: How India is Making Its Place in the World,” told CNBC over email: “The widely-discussed allegation that the Modi government is pushing for greater authority over the RBI and diminishing its traditional independence is further cause for concern. The Indian economy has done well with an RBI that functions independently and through its own economic, not political, decisions. It should be allowed to continue without political interference.”

The next monetary policy meeting in India is set for Friday.


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: seema mody, dhiraj singh, bloomberg, getty images
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Japan faces risk of falling back into deflation, BOJ’s Wakatabe warns

Wakatabe, a vocal advocate of aggressive monetary easing, said it was important to maintain the BOJ’s massive stimulus program to ensure the economy remains strong enough to nudge up prices and wages. “Doing so would enhance the sustainability of our policy and heighten the chance of achieving 2 percent inflation.” As an academic, Wakatabe had repeatedly called for stronger steps to drive up inflation. If downward pressure is exerted on the economy again, it may revert to deflation,” Wakatabe sa


Wakatabe, a vocal advocate of aggressive monetary easing, said it was important to maintain the BOJ’s massive stimulus program to ensure the economy remains strong enough to nudge up prices and wages. “Doing so would enhance the sustainability of our policy and heighten the chance of achieving 2 percent inflation.” As an academic, Wakatabe had repeatedly called for stronger steps to drive up inflation. If downward pressure is exerted on the economy again, it may revert to deflation,” Wakatabe sa
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Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: kiyoshi ota, bloomberg, getty images
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Japan faces risk of falling back into deflation, BOJ's Wakatabe warns

Bank of Japan Deputy Governor Masazumi Wakatabe said on Wednesday the country could slide back into deflation if the economy comes under downward pressure again, highlighting risks such as the fallout from U.S.-China trade frictions.

Wakatabe, a vocal advocate of aggressive monetary easing, said it was important to maintain the BOJ’s massive stimulus program to ensure the economy remains strong enough to nudge up prices and wages.

But he noted the central bank would be vigilant to the side-effects of prolonged easing, as its huge purchases dry up bond market liquidity and near-zero interest rates hurt financial institutions’ profits.

“It’s necessary to continuously examine not only the effects of our policy on inflation, but also the impact on financial markets and the banking system,” Wakatabe said in a speech to business leaders in Niigata, northern Japan.

“Doing so would enhance the sustainability of our policy and heighten the chance of achieving 2 percent inflation.”

As an academic, Wakatabe had repeatedly called for stronger steps to drive up inflation. But he has toned down his demands for more stimulus since joining the BOJ board in March.

The central bank is now at a crossroads because it has been pursuing radical quantitative easing for more than five years with only mixed results.

Wakatabe said while Japan’s economic expansion would continue, it faced various risks such as the effects of next year’s scheduled tax hike to 10 percent from 8 percent and the U.S.-China trade dispute.

“Japan is only half way to achieving 2 percent inflation. If downward pressure is exerted on the economy again, it may revert to deflation,” Wakatabe said.

“The BOJ will seek to accelerate inflation to levels deemed appropriate for the economy by continuing large-scale monetary easing,” he said.

Under a policy dubbed yield curve control, the BOJ guides short-term interest rates at minus 0.1 percent and long-term rates around zero percent to achieve its 2 percent price goal.

Subdued inflation has forced the BOJ to maintain its huge stimulus program despite the rising costs, such as the hit to financial institutions’ profits from years of near-zero rates.

The BOJ took steps in July to make its policy framework more sustainable, such as allowing bond yields to move more flexibly around its target.

The central bank’s nine-member board is split between those who see room to ramp up stimulus, and those who are becoming increasingly worried about the dangers of prolonged easing.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: kiyoshi ota, bloomberg, getty images
Keywords: news, cnbc, companies, risk, policy, inflation, rates, easing, faces, warns, falling, stimulus, economy, japan, central, wakatabe, bojs, boj, financial, deflation


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OPEC meeting: Oil markets fear Trump controls production policy

Oil markets are deeply concerned about the power President Donald Trump has over some of the world’s largest crude producers, energy analysts told CNBC on Wednesday, ahead of a much-anticipated meeting between OPEC and non-OPEC members. But, even with the oil market near the bottom of its worst price plunge since the 2008 financial crisis, few external observers expect the energy alliance to engineer a succinct production quota that satisfies oil traders. “This is the first time I think we have


Oil markets are deeply concerned about the power President Donald Trump has over some of the world’s largest crude producers, energy analysts told CNBC on Wednesday, ahead of a much-anticipated meeting between OPEC and non-OPEC members. But, even with the oil market near the bottom of its worst price plunge since the 2008 financial crisis, few external observers expect the energy alliance to engineer a succinct production quota that satisfies oil traders. “This is the first time I think we have
OPEC meeting: Oil markets fear Trump controls production policy Cached Page below :
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OPEC meeting: Oil markets fear Trump controls production policy

Oil markets are deeply concerned about the power President Donald Trump has over some of the world’s largest crude producers, energy analysts told CNBC on Wednesday, ahead of a much-anticipated meeting between OPEC and non-OPEC members.

The influential oil cartel and its allied partners are gathering in Vienna, Austria, this week, with the aim of reaching an accord to deliver a fresh round of supply cuts.

But, even with the oil market near the bottom of its worst price plunge since the 2008 financial crisis, few external observers expect the energy alliance to engineer a succinct production quota that satisfies oil traders.

“This is the first time I think we have come into an OPEC meeting that is so political. We literally don’t know how they are going to message this,” Amrita Sen, chief oil analyst at Energy Aspects, told CNBC’s Hadley Gamble in Vienna.

“Given how fragile the market is, the market’s biggest fear is that it doesn’t matter whether OPEC understands fundamentals, it is Trump that is controlling OPEC policy.”

“And if they are unable to communicate what they are going to do very clearly — which I think there is a big risk that they can’t — the market is going to sell-off because their biggest fears are going to get confirmed,” Sen said.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: sam meredith, ludovic marin, afp, getty images
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India keeps rates on hold; to gradually reduce SLR

The monetary policy committee (MPC) kept the repo rate unchanged at 6.50 percent on Wednesday as predicted by 64 of 70 analysts in a Reuters poll. All six members of the MPC voted to keep the rates on hold. The central bank said starting in the January-March quarter of 2019 it would begin to lower banks’ mandatory bond holding ratios by 25 basis points each quarter until it reaches 18 percent of deposits. The so-called statutory liquidity ratio (SLR) currently stands at 19.50 percent and the mov


The monetary policy committee (MPC) kept the repo rate unchanged at 6.50 percent on Wednesday as predicted by 64 of 70 analysts in a Reuters poll. All six members of the MPC voted to keep the rates on hold. The central bank said starting in the January-March quarter of 2019 it would begin to lower banks’ mandatory bond holding ratios by 25 basis points each quarter until it reaches 18 percent of deposits. The so-called statutory liquidity ratio (SLR) currently stands at 19.50 percent and the mov
India keeps rates on hold; to gradually reduce SLR Cached Page below :
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India keeps rates on hold; to gradually reduce SLR

The monetary policy committee (MPC) kept the repo rate unchanged at 6.50 percent on Wednesday as predicted by 64 of 70 analysts in a Reuters poll. The central bank also retained its “calibrated tightening” stance as expected.

All six members of the MPC voted to keep the rates on hold.

“Even as inflation projections have been revised downwards significantly and some of the risks pointed out in the last resolution have been mitigated, especially of crude oil prices, several uncertainties still cloud the inflation outlook,” said the MPC in its statement.

The central bank said starting in the January-March quarter of 2019 it would begin to lower banks’ mandatory bond holding ratios by 25 basis points each quarter until it reaches 18 percent of deposits.

The so-called statutory liquidity ratio (SLR) currently stands at 19.50 percent and the move to lower the SLR should prod banks to lend more rather than park their cash in safe-haven government securities.

After the RBI policy announcement, India’s 10-year benchmark bond yield fell to 7.48 percent from 7.54 percent before the policy statement.

The Indian rupee strengthened to 70.46 to the dollar from 70.50 before the policy statement, while the broader NSE stock index was down 0.68 percent at 0905 GMT.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: arun sharma, hindustan times, getty images
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Beijing’s economic ‘red lines’ may clash with Trump’s 90-day plan, analysts say

The “Made in China 2025” plan is Beijing’s industrial policy to invest heavily in high-end technologies such as artificial intelligence in a bid to catch up with rivals like the U.S. and Germany. The analysts’ comments follow Trump and Xi’s agreement over the weekend at the G-20 meeting in Argentinato put their bilateral trade war on pause momentarily. China is one of the world’s top producers of ingredients used to manufacture fentanyl, according to the U.S. Department of Justice. After all, so


The “Made in China 2025” plan is Beijing’s industrial policy to invest heavily in high-end technologies such as artificial intelligence in a bid to catch up with rivals like the U.S. and Germany. The analysts’ comments follow Trump and Xi’s agreement over the weekend at the G-20 meeting in Argentinato put their bilateral trade war on pause momentarily. China is one of the world’s top producers of ingredients used to manufacture fentanyl, according to the U.S. Department of Justice. After all, so
Beijing’s economic ‘red lines’ may clash with Trump’s 90-day plan, analysts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: huileng tan, thomas peter, pool, getty images
Keywords: news, cnbc, companies, trump, trade, policy, xi, beijings, wrote, lines, 90day, clash, trumps, chinese, plan, say, technology, red, china, analysts, statements, economic, 2025


Beijing's economic 'red lines' may clash with Trump's 90-day plan, analysts say

U.S. President Donald Trump and Chinese President Xi Jinping may have put their tit-for-tat tariff fight on hold, but differences between the two countries’ views on technology and state-supported businesses will challenge negotiations between the two economic giants, analysts said.

“Staunchly committed to the Chinese economic model, Xi will continue to lend state support to targeted industries, particularly in technology under the Made in China 2025 programme,” Eleanor Olcott, China policy analyst at research firm TS Lombard, wrote on Monday.

Washington has accused China of forcing technology transfers, and tacitly supporting intellectual property violations and cyber-crime, but those issues were downplayed in official descriptions of the weekend’s agreement.

“Despite White House economic advisor (Larry) Kudlow suggesting that the two sides are ‘pretty close’ on an agreement on intellectual property theft, 90 days still looks like a short period for discussions on complicated issues such as non-tariff barriers,” wrote Zhu Huani, an economist at Mizuho Bank in a note on Tuesday.

“Whilst reducing (the) trade gap could be the easier part to begin with, China is less likely to make concessions on its industrial policies such as ‘Made in China 2025,’ which might hinder discussion surrounding technology transfer,” added Zhu.

The “Made in China 2025” plan is Beijing’s industrial policy to invest heavily in high-end technologies such as artificial intelligence in a bid to catch up with rivals like the U.S. and Germany.

The analysts’ comments follow Trump and Xi’s agreement over the weekend at the G-20 meeting in Argentinato put their bilateral trade war on pause momentarily. They would, according to official statements, hold off on slapping additional tariffs on each other’s goods after Jan. 1 as talks continue between both countries.

As part of the deal, China said it would purchase more American imports, particularly in energy and agriculture. Beijing will also exert more control over the flow of fentanyl — a synthetic opioid that is 50 times more addictive than heroin and has been linked to thousands of overdose deaths in the United States. China is one of the world’s top producers of ingredients used to manufacture fentanyl, according to the U.S. Department of Justice.

But, “it is unclear how this [deal at the G-20] will resolve issues related to IP protection and forced technology transfers in China — it won’t,” economists from French trade credit insurer Coface wrote in a note on Monday.

After all, some are even jokingly questioning if Trump and Xi even attended the same meeting given the significant differences in statements from the two sides.

“There is reason to believe the two parties do not quite meet over the finer details of the deal: pointedly, no joint statement was released after the meeting. Furthermore, the statements that the U.S. and China issued separately showed material divergences, with the Chinese statement making no mention of the 90-day deadline on the threatened 25 percent tariff increase,” economists from Pictet Wealth Management wrote Monday.

Neither side referred to the “Made in China 2025” industrial policy, Pictet noted.

“Given the differences in starting positions, with the Chinese side setting red lines around its state-led system, it is highly unlikely that the time-frame of 90 days will allow the U.S. to extract concessions Trump could present as a large-scale ‘win’ with any degree of conviction,” said TS Lombard’s Olcott.

—CNBC’s Kevin Breuninger, Javier David and Saheli Roy Choudhury contributed to this report.

Disclosure: Larry Kudlow is a former CNBC contributor.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: huileng tan, thomas peter, pool, getty images
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Chinese central bank chief says will keep monetary policy flexible

China’s central bank will keep its monetary policy flexible and appropriately adjust it according to changes in the country’s economic situation, bank governor Yi Gang said in a magazine article published late on Monday. Yi said that tools he described as a “slow release of air” and “soft landing” must be used when the economy begins overheating or a bubble in asset prices starts developing, but that financial markets must be stabilised and public confidence enhanced if a recession or external s


China’s central bank will keep its monetary policy flexible and appropriately adjust it according to changes in the country’s economic situation, bank governor Yi Gang said in a magazine article published late on Monday. Yi said that tools he described as a “slow release of air” and “soft landing” must be used when the economy begins overheating or a bubble in asset prices starts developing, but that financial markets must be stabilised and public confidence enhanced if a recession or external s
Chinese central bank chief says will keep monetary policy flexible Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: teh eng koon, afp, getty images
Keywords: news, cnbc, companies, chief, central, bank, magazine, financial, confidence, chinese, monetary, flexible, published, opening, policy, economic


Chinese central bank chief says will keep monetary policy flexible

China’s central bank will keep its monetary policy flexible and appropriately adjust it according to changes in the country’s economic situation, bank governor Yi Gang said in a magazine article published late on Monday.

Yi said that tools he described as a “slow release of air” and “soft landing” must be used when the economy begins overheating or a bubble in asset prices starts developing, but that financial markets must be stabilised and public confidence enhanced if a recession or external shock occurred.

China’s central bank has recently eased monetary policy in the face of slowing economic and credit growth, with moves that included bringing down market interest rates and four cuts in bank reserve requirements so far this year.

Yi made his comments in an article in the China Finance magazine, which is published by the People’s Bank of China, to commemorate the 40th anniversary of its landmark economic reforms and opening up under former Chinese leader Deng Xiaoping.

He also said the central bank would continue to promote the opening up of China’s financial industry to technology, improve governance and develop a macro policy framework that will enhance international confidence in the renminbi.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: teh eng koon, afp, getty images
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The US needs to clean up its monetary excesses and twin deficits

It’s something like the German Bundesbank before the monetary union, where no German politician would dare talk about the monetary policy, and where it would be unthinkable that a Buba official would ever publicly urge higher inflation rates. Normally, fiscal and monetary policies must be closely coordinated to deliver a noninflationary policy mix for a steady and sustainable growth. A benign neglect of trade deficits is an equally serious policy blunder. They are wealth transfers to trade partn


It’s something like the German Bundesbank before the monetary union, where no German politician would dare talk about the monetary policy, and where it would be unthinkable that a Buba official would ever publicly urge higher inflation rates. Normally, fiscal and monetary policies must be closely coordinated to deliver a noninflationary policy mix for a steady and sustainable growth. A benign neglect of trade deficits is an equally serious policy blunder. They are wealth transfers to trade partn
The US needs to clean up its monetary excesses and twin deficits Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: dr michael ivanovitch, mandel ngan, afp, getty images
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The US needs to clean up its monetary excesses and twin deficits

Price stability is a precious public good — a situation where investment decisions and contractual relationships are made under assumptions of stable prices, because the monetary authorities are trusted to deliver a stable purchasing power of the currency they manage. It’s something like the German Bundesbank before the monetary union, where no German politician would dare talk about the monetary policy, and where it would be unthinkable that a Buba official would ever publicly urge higher inflation rates.

Fiscal policies are a question of national priorities. The U.S. debt and deficit numbers are clear — and they are not good. Budget constraints must be respected. There is a political and market sanction if they are not. The Fed’s independence also means that it should never validate unreasonable fiscal policy choices. Normally, fiscal and monetary policies must be closely coordinated to deliver a noninflationary policy mix for a steady and sustainable growth.

A benign neglect of trade deficits is an equally serious policy blunder. Those deficits are a subtraction from American GDP. They are wealth transfers to trade partners and sources of American foreign debt because deficits have to be covered by U.S. debt instruments in exchange for foreign savings.

For almost two years, Washington has been in a virtual state of siege because the Chinese, the Japanese and the Europeans don’t care about threats and taunts. Those economies are piling on their U.S. trade surpluses with abandon.

It should not take a dinner on Argentinian beef and a big delegation to convince the Chinese president to do “something” about his soaring U.S. trade surpluses. Xi knows he has a $400 billion trade problem with the U.S., and he knows that he needs to get that down. But Xi has been given a wonderful grace period because he has to negotiate Washington’s requests to stop forced technology transfers, illegal intellectual property acquisitions, illegal export subsidies, etc.

The solution here is simple. Washington should ask Beijing for a prompt reduction of its trade deficit. How China does that is its own choice.

Think it can’t actually be done that way? Well, in the first nine months of this year, South Korea slashed its U.S. trade surplus 22.3 percent, after a 17 percent cut for last year as a whole. That is a respectful gesture of a true friend and ally: A 39.3 percent surplus cut since U.S. President Donald Trump took office.

The others can do that too, but the truth is the Chinese, the Japanese and the Europeans don’t want to do it.

And the U.S. should not leave it to the Chinese to change the structural problems. American companies should be prohibited from allowing forced technology transfers, or other forms of intellectual property thefts. Cyber-enabled thefts should be dealt with appropriate technologies that America has. Bilateral market access and investment practices should be matters of strict reciprocity, or as a Scorsese drama character would put it: “Same to you, fellas.”


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: dr michael ivanovitch, mandel ngan, afp, getty images
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Fed’s Quarles: Fed watching data but will not react to ‘every wavering’

Federal Reserve vice chairman Randal Quarles said the Fed’s increasing “data dependence” does not mean it will react to every rise or fall in economic statistics or markets, but only to “significant changes in direction.” After a week in which markets have swung in their interpretation of where the Fed is heading, Quarles appeared to anchor the Fed’s move towards slowly but steadily continuing to raise interest rates. “We should be data dependent but not reacting to every wavering of the needle


Federal Reserve vice chairman Randal Quarles said the Fed’s increasing “data dependence” does not mean it will react to every rise or fall in economic statistics or markets, but only to “significant changes in direction.” After a week in which markets have swung in their interpretation of where the Fed is heading, Quarles appeared to anchor the Fed’s move towards slowly but steadily continuing to raise interest rates. “We should be data dependent but not reacting to every wavering of the needle
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Fed's Quarles: Fed watching data but will not react to 'every wavering'

Federal Reserve vice chairman Randal Quarles said the Fed’s increasing “data dependence” does not mean it will react to every rise or fall in economic statistics or markets, but only to “significant changes in direction.”

After a week in which markets have swung in their interpretation of where the Fed is heading, Quarles appeared to anchor the Fed’s move towards slowly but steadily continuing to raise interest rates.

“We should be data dependent but not reacting to every wavering of the needle across the dial…We have described in all the communications tools a path that is pretty clear,” Quarles said. “We are following a strategy and taking account of data over time as it comes in and in response to significant changes in direction.”

That path currently has the Fed raising rates later this month and throughout 2019, an interpretation some investors have called into question given the recent focus of policymakers on weakening global growth and other recent data.

Stock markets in particular rose dramatically last week after construing remarks by Fed chair Jerome Powell to mean that the central bank may be nearer than thought to pausing the cycle of rate increases it began in late 2015.

But Quarles, repeating what has become a theme of the Powell Fed, emphasized that discussion of a possible stopping point puts too much emphasis around the concept of the “neutral” rate of interest, a notion he feels is not useful as a precise guide to appropriate policy as economic conditions become more normal.

It cannot be precise, may be changing over time, and “its utility as the central organizing thought around how you are conducting monetary policy becomes less,” Quarles said.

His comments, after weeks in which markets have both dropped dramatically and climbed based on perceptions of where rates are in comparison to “neutral,” are part of Powell’s so far choppy effort to downplay the concept — discounting its usefulness but continuing to refer to where policy stands in relation to it.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: brendan mcdermid
Keywords: news, cnbc, companies, week, feds, significant, thought, markets, watching, react, quarles, fed, policy, rates, data, wavering, recent


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Mnuchin says Trump ‘liked’ Fed chief Powell’s market-boosting speech

In a speech Wednesday, Powell appeared to walk back comments on Oct. 3 that rates were a long way from so-called neutral. “I do think the president was pleased with the speech last week,” Mnuchin said Monday in a “Squawk Box” interview. The Wall Street Journal reported last month that Trump had expressed dissatisfaction with Mnuchin for recommending the appointment of Powell. Mnuchin told CNBC he’s hopeful for a “real agreement” with China over trade. He said trade policy remains an important pi


In a speech Wednesday, Powell appeared to walk back comments on Oct. 3 that rates were a long way from so-called neutral. “I do think the president was pleased with the speech last week,” Mnuchin said Monday in a “Squawk Box” interview. The Wall Street Journal reported last month that Trump had expressed dissatisfaction with Mnuchin for recommending the appointment of Powell. Mnuchin told CNBC he’s hopeful for a “real agreement” with China over trade. He said trade policy remains an important pi
Mnuchin says Trump ‘liked’ Fed chief Powell’s market-boosting speech Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, trade, policy, liked, marketboosting, president, chief, rate, speech, fed, powell, rates, mnuchin, powells, trump


Mnuchin says Trump 'liked' Fed chief Powell's market-boosting speech

Mnuchin on trade policy as an economic driver and the job Fed’s Powell is doing 5 Hours Ago | 03:36

Treasury Secretary Steven Mnuchin told CNBC on Monday that President Donald Trump was pleased with Federal Reserve Chairman Jerome Powell’s speech that eased fears of a more aggressive policy on interest rate hikes.

The central bank has already raised rates three times this year, and another hike is expected in December. The target range for the central bank’s benchmark federal funds rate, which banks charge each other for overnight lending, stands at 2 percent to 2.25 percent. After its most recent hike, in September, the Fed projected three rate increases for next year.

In a speech Wednesday, Powell appeared to walk back comments on Oct. 3 that rates were a long way from so-called neutral. He said rates are “just below” neutral, perhaps indicting that concerns about a more aggressive path higher for rates may no longer be warranted. That sparked a strong rally on Wall Street, with the S&P 500 having its best week in seven years.

“I do think the president was pleased with the speech last week,” Mnuchin said Monday in a “Squawk Box” interview. “I will continue to give the president my best advice.”

Trump had been critical of the Fed’s policies under Powell, blaming the Fed chief for the stock market’s recent declines and even General Motors’ plan to cut production at several U.S. plants. The Wall Street Journal reported last month that Trump had expressed dissatisfaction with Mnuchin for recommending the appointment of Powell.

Mnuchin on Monday responded by saying there are issues the president and he don’t agree on but “I tell him what I think.” Trump is “the president. He was elected. These are his decisions,” he added.

The Treasury secretary joined CNBC after Trump and Chinese President Xi Jinping reached a truce over the weekend in their bilateral trade war, agreeing to a 90-day period of no new tariffs as talks continue. Stocks rose more than 1 percent Monday on the news. Mnuchin told CNBC he’s hopeful for a “real agreement” with China over trade. He said trade policy remains an important pillar of the Trump administration’s goal of delivering economic growth of 3 percent or better.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, trade, policy, liked, marketboosting, president, chief, rate, speech, fed, powell, rates, mnuchin, powells, trump


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