Trump could cause market ‘turmoil’ if he removes Powell as central bank chief, says former Fed governor

U.S. President Donald Trump risks hurting investor sentiment if he removes Jerome Powell as chair of the Federal Reserve, according to a former American central bank governor. Heller’s comment came as Bloomberg, citing people familiar with the matter, reported on Wednesday that Trump said he believes he has the authority to demote Powell. The president had publicly blamed the Fed’s interest rates hikes for holding back U.S. economic growth. After the Fed announced its monetary policy decision on


U.S. President Donald Trump risks hurting investor sentiment if he removes Jerome Powell as chair of the Federal Reserve, according to a former American central bank governor. Heller’s comment came as Bloomberg, citing people familiar with the matter, reported on Wednesday that Trump said he believes he has the authority to demote Powell. The president had publicly blamed the Fed’s interest rates hikes for holding back U.S. economic growth. After the Fed announced its monetary policy decision on
Trump could cause market ‘turmoil’ if he removes Powell as central bank chief, says former Fed governor Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: yen nee lee
Keywords: news, cnbc, companies, president, reserve, removes, feds, reported, trump, cause, fed, market, chief, turmoil, governor, central, powell, signs, fouryear, federal, growth


Trump could cause market 'turmoil' if he removes Powell as central bank chief, says former Fed governor

U.S. President Donald Trump risks hurting investor sentiment if he removes Jerome Powell as chair of the Federal Reserve, according to a former American central bank governor.

Investors have in recent months become increasingly nervous as trade tensions between the U.S. and China rise. Conflict between the two major powers have threatened to derail economic growth even further at a time when the global economy has shown signs of slowing down.

“To fire a Federal Reserve governor or chairman would be a very unprecedented move, it would result in turmoil in the financial markets, it would be something that you really don’t want to do because you don’t need an absolute increase in uncertainty which this would bring about,” Robert Heller, a member of the Fed’s Board of Governors from 1986 to 1989, told CNBC’s “Street Signs” on Thursday.

Heller’s comment came as Bloomberg, citing people familiar with the matter, reported on Wednesday that Trump said he believes he has the authority to demote Powell.

The president had publicly blamed the Fed’s interest rates hikes for holding back U.S. economic growth. He considered demoting Powell in February, Bloomberg reported on Tuesday. After the Fed announced its monetary policy decision on Wednesday, Powell said he intends to serve his full four-year term.

“The law is clear that I have a four-year term,” the central bank chief emphasized.


Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: yen nee lee
Keywords: news, cnbc, companies, president, reserve, removes, feds, reported, trump, cause, fed, market, chief, turmoil, governor, central, powell, signs, fouryear, federal, growth


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China’s Xi Jinping arrives in North Korea on a visit ‘big on symbolism’

Chinese president Xi Jinping holds talks with North Korean leader Kim Jong Un in Dalian on May 7-8 2018. Ju Peng | Xinhua | Getty ImagesChina’s President Xi Jinping arrived in Pyongyang on Thursday morning for a state visit to North Korea — the first by a Chinese state leader in 14 years. The meeting between Xi and North Korean leader Kim Jong Un is more out of “convenience” and “pragmatism” than true comradeship, he said. Xi’s entourage includes high-level diplomats such as Chinese Foreign Mini


Chinese president Xi Jinping holds talks with North Korean leader Kim Jong Un in Dalian on May 7-8 2018. Ju Peng | Xinhua | Getty ImagesChina’s President Xi Jinping arrived in Pyongyang on Thursday morning for a state visit to North Korea — the first by a Chinese state leader in 14 years. The meeting between Xi and North Korean leader Kim Jong Un is more out of “convenience” and “pragmatism” than true comradeship, he said. Xi’s entourage includes high-level diplomats such as Chinese Foreign Mini
China’s Xi Jinping arrives in North Korea on a visit ‘big on symbolism’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: grace shao
Keywords: news, cnbc, companies, pyongyang, arrives, north, president, trade, state, visit, korea, jinping, xi, chinese, china, chinas, symbolism, big


China's Xi Jinping arrives in North Korea on a visit 'big on symbolism'

Chinese president Xi Jinping holds talks with North Korean leader Kim Jong Un in Dalian on May 7-8 2018. Ju Peng | Xinhua | Getty Images

China’s President Xi Jinping arrived in Pyongyang on Thursday morning for a state visit to North Korea — the first by a Chinese state leader in 14 years. Experts say the move is both symbolic and significant. The visit — which comes days before Xi is set to meet with U.S. President Donald Trump at the G-20 summit — will be “big on symbolism and big on substance,” said John Park, director of the Korea Project at Harvard Kennedy School. Washington and Beijing are currently locked in a protracted trade war that started last year and investors are hoping for some progress during the G-20 meeting. Xi’s visit to Pyongyang also comes as nuclear talks between the U.S. and North Korea have reached a stalemate, after the leaders from both countries walked away from the negotiating table during a February summit in Hanoi. Tom Rafferty from the Economist Intelligence Unit told CNBC on a phone interview that the visit shows that both China and North Korea “are engaged in a bit of messaging to the U.S.”

Xi’s trip is partly an effort to remind Trump of the key role that China plays on the North Korean nuclear issue. Michael Hirson Eurasia Group

Nonetheless, it is important to note the significance of having such a high-level Chinese state-visit, Rafferty said, adding that it doesn’t mean there are no problems between the neighboring countries. The meeting between Xi and North Korean leader Kim Jong Un is more out of “convenience” and “pragmatism” than true comradeship, he said. Xi’s entourage includes high-level diplomats such as Chinese Foreign Minister Wang Yi and head of the state economic planner, He Lifeng, according to Chinese state media Xinhua.

North Korea dependency

“The economic dimension is crucial and in many respects — the 1%, the elites in North Korea … (have) already migrated into the Chinese market place,” Park told CNBC on Thursday. He highlighted that the meeting between the two leaders is a “further elevation” and “rebuilding of this party-to-party dynamic.” About 90% of North Korea’s external trade is with China, and that includes the import of food and energy supplies. Although China has been staying within the the guidelines of the United Nations sanctions on North Korea, Park said that an “easing” of sanctions by Beijing toward Pyongyang can be expected. Fundamentally, he said, China is a “lifeline for Pyongyang.”

US-China trade


Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: grace shao
Keywords: news, cnbc, companies, pyongyang, arrives, north, president, trade, state, visit, korea, jinping, xi, chinese, china, chinas, symbolism, big


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Putin says US tariffs are designed to hold back China’s rise

U.S. trade tariffs on China are aimed at holding back the country’s economic rise, Russian President Vladimir Putin said Thursday. He also added that recent restrictions placed on Chinese tech giant Huawei were designed to weaken the world’s second-largest economy. Putin likened tariffs on China to sanctions on Russia, saying both were punitive. But the U.S. slapped tariffs on their goods, you can call it sanctions — tariffs, sanctions, it’s the same way,” he said. The U.S. imposed import tariff


U.S. trade tariffs on China are aimed at holding back the country’s economic rise, Russian President Vladimir Putin said Thursday. He also added that recent restrictions placed on Chinese tech giant Huawei were designed to weaken the world’s second-largest economy. Putin likened tariffs on China to sanctions on Russia, saying both were punitive. But the U.S. slapped tariffs on their goods, you can call it sanctions — tariffs, sanctions, it’s the same way,” he said. The U.S. imposed import tariff
Putin says US tariffs are designed to hold back China’s rise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: holly ellyatt
Keywords: news, cnbc, companies, china, hold, putin, tariffs, designed, russia, chinas, sanctions, russian, president, ukraine, economy, rise, trade


Putin says US tariffs are designed to hold back China's rise

U.S. trade tariffs on China are aimed at holding back the country’s economic rise, Russian President Vladimir Putin said Thursday.

During his annual phone-in with members of the Russian public, Putin said U.S. tariffs on China, and also sanctions on Russia’s economy for its annexation of Crimea in 2014, were aimed at holding both countries back. He also added that recent restrictions placed on Chinese tech giant Huawei were designed to weaken the world’s second-largest economy.

“What do they want to do? They want to curb the rise of China, the same is happening in the case of Russia and it will continue to happen,” he said during the live TV broadcast, according to a translation.

“So if we are to have a certain place in this world we just need to be strong, particularly in the economy,” he said.

Putin likened tariffs on China to sanctions on Russia, saying both were punitive.

“China has nothing to do with Crimea or the conflict in the southeast of Ukraine — we are accused that we occupied (the) Donbass (region in Ukraine) but that’s complete nonsense, that’s a lie. But what has China got to do with it? But the U.S. slapped tariffs on their goods, you can call it sanctions — tariffs, sanctions, it’s the same way,” he said.

Putin’s comments come as Russia and China appear more united in the face of a common economic rival. The U.S. imposed import tariffs on China at the start of 2018, saying that China’s trade practices were unfair, and the trade conflict has since escalated.

Talks are ongoing to reach some kind of trade deal and a meeting between President Donald Trump and Chinese President Xi Jinping is taking place next week, though hopes for an immediate deal being signed are low. In the meantime, Trump has faced pressure to take a tougher stance on Russia, particularly in light of its alleged meddling in the 2016 U.S. election.

It is Putin’s 17th annual question-and-answer session with Russian citizens and the “Direct Line” covers a variety of topical domestic issues from health care and jobs to housing and waste collection. This year’s event comes amid rumblings over living standards in Russia.

Putin faced public criticism and protests, and his approval ratings were dented late last year, after he approved long-delayed pension reforms, including gradually raising the retirement age by five years (from 55 to 60 for women from 60 to 65 from men). Protests had led Putin to row back on initial plans to raise the retirement age for women to 63 years.

The call-in also comes amid continuing international sanctions on Russia for its annexation of Crimea in 2014 and role in a pro-Russian uprising in eastern Ukraine in the same period. Russia’s economy is expected to grow only 1.2% in 2019, the World Bank predicted earlier in June.

In its Global Economic Prospects report, the bank said “tighter monetary policy, combined with a value-added tax hike at the beginning of 2019, are also contributing to weaker growth momentum in the remainder of 2019.”

Private investment also remains tepid “due to policy uncertainty and prospects for slowing potential growth over the longer term due to worsening demographic pressures.”


Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: holly ellyatt
Keywords: news, cnbc, companies, china, hold, putin, tariffs, designed, russia, chinas, sanctions, russian, president, ukraine, economy, rise, trade


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The Trump economy is starting to look more and more like the Obama economy

In some key ways, the Donald Trump economy, on fire last year but slowing this year, is starting to resemble the one he inherited from his predecessor . It wasn’t supposed to be this way: The 2017 tax cut and aggressive moves toward deregulation were supposed to pull the U.S. economy out of its glacial move higher. Years and years of what the Fed has done I think have brainwashed them to think they can take care of everything.” Had the Fed not been so aggressive in raising rates, the president h


In some key ways, the Donald Trump economy, on fire last year but slowing this year, is starting to resemble the one he inherited from his predecessor . It wasn’t supposed to be this way: The 2017 tax cut and aggressive moves toward deregulation were supposed to pull the U.S. economy out of its glacial move higher. Years and years of what the Fed has done I think have brainwashed them to think they can take care of everything.” Had the Fed not been so aggressive in raising rates, the president h
The Trump economy is starting to look more and more like the Obama economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: jeff cox
Keywords: news, cnbc, companies, rates, fed, recession, starting, trump, economy, think, scars, outright, president, obama, supposed, look


The Trump economy is starting to look more and more like the Obama economy

In some key ways, the Donald Trump economy, on fire last year but slowing this year, is starting to resemble the one he inherited from his predecessor . There are the rock-bottom bond yields, plodding economic growth and, not to be understated, the Federal Reserve seemingly pulling all the strings, a role that was only exacerbated in the days since the financial crisis and Great Recession and continues to the present day. Those similarities came into even sharper focus this week, when the benchmark 10-year Treasury note yield fell below 2% for the first time since Trump became president, and the Fed’s indication, if something just short of an outright promise, that it soon will be cutting rates about half a year since its most recent hike. It wasn’t supposed to be this way: The 2017 tax cut and aggressive moves toward deregulation were supposed to pull the U.S. economy out of its glacial move higher. That happened in 2018, but policymakers and Wall Street pros are growing increasingly fearful that a slowdown if not outright recession is on the horizon, and the Fed is being asked again to ride to the rescue.

“You’re sort of the same in terms of growth prospects, but not necessarily in the complexion of it,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “In 2012, 2013, you still had the scars of the great financial crisis. Now those scars have been completely forgotten. Years and years of what the Fed has done I think have brainwashed them to think they can take care of everything.” The Fed may not be able to fix everything, but in Trump’s view the central bank is at the core of what’s gone wrong. Had the Fed not been so aggressive in raising rates, the president has insisted, the economy would be doing much better. Since Trump took office, the Fed has enacted seven rate hikes, including four in 2018. There were only two increases during Barack Obama’s administration, with one coming after the 2016 election.

Different circumstances, similar results


Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: jeff cox
Keywords: news, cnbc, companies, rates, fed, recession, starting, trump, economy, think, scars, outright, president, obama, supposed, look


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US Trade Representative Robert Lighthizer says he will meet with Chinese counterpart ahead of Trump-Xi meeting at G-20

U.S. Trade Representative Robert Lighthizer said Wednesday that he will be speaking with a Chinese official before President Donald Trump meets with Chinese President Xi Jinping at the upcoming G-20 summit. But it’s still unclear when the currently stalled trade negotiations between the two economic superpowers will restart, Lighthizer said. Talks between the U.S. and China on a new trade agreement ground to halt in May amid disagreements between negotiators — including Lighthizer’s counterpart,


U.S. Trade Representative Robert Lighthizer said Wednesday that he will be speaking with a Chinese official before President Donald Trump meets with Chinese President Xi Jinping at the upcoming G-20 summit. But it’s still unclear when the currently stalled trade negotiations between the two economic superpowers will restart, Lighthizer said. Talks between the U.S. and China on a new trade agreement ground to halt in May amid disagreements between negotiators — including Lighthizer’s counterpart,
US Trade Representative Robert Lighthizer says he will meet with Chinese counterpart ahead of Trump-Xi meeting at G-20 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: kevin breuninger
Keywords: news, cnbc, companies, meet, robert, representative, g20, chinese, china, trumpxi, counterpart, trump, meeting, xi, tariffs, summit, president, lighthizer, trade


US Trade Representative Robert Lighthizer says he will meet with Chinese counterpart ahead of Trump-Xi meeting at G-20

U.S. Trade Representative Robert Lighthizer said Wednesday that he will be speaking with a Chinese official before President Donald Trump meets with Chinese President Xi Jinping at the upcoming G-20 summit.

But it’s still unclear when the currently stalled trade negotiations between the two economic superpowers will restart, Lighthizer said.

“I have a conversation set up with my counterpart on the telephone in the next day and a half, and then I expect to meet with him with [Treasury Secretary Steven] Mnuchin in Osaka before the president meets” with Xi, Lighthizer testified before the House Ways and Means Committee.

Trump announced in a tweet Tuesday that he would have an “extended meeting” with Xi at the summit, which is scheduled for June 28-29 in Osaka, Japan. Xi confirmed the plans to Chinese state media soon after.

Talks between the U.S. and China on a new trade agreement ground to halt in May amid disagreements between negotiators — including Lighthizer’s counterpart, Chinese Vice Premier Liu He. The U.S. alleges China reneged on prior commitments made over the course of the discussions.

“When actual negotiations begin again, I can’t say at this point,” Lighthizer told the Democrat-led committee.

“We’re talking, we’re going to meet, and, you know, we have the same objective that you and the other members have. And that is that if we can resolve these issues in a way that improves this relationship, preserves the competitive advantage of the United States, we have an obligation to do that, and hopefully we’ll get to that point,” he said.

Asked by the committee’s ranking member, Rep. Kevin Brady, R-Texas, if the U.S. would be ready to engage with China if they returned to the negotiating table, Lighthizer said, “Absolutely, we are ready to engage.”

The U.S. and China have slapped punitive tariffs on hundreds of billions of dollars of imports of each other’s goods. In May, Trump hiked tariffs on $200 billion in Chinese imports, and threatened to slap duties on another $300 billion after talks stalled out that month.

Trump said last week that he will also meet with Russian President Vladimir Putin at the G-20 summit. Xi met with Putin earlier in June, and heaped praise on the Russian leader.


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: kevin breuninger
Keywords: news, cnbc, companies, meet, robert, representative, g20, chinese, china, trumpxi, counterpart, trump, meeting, xi, tariffs, summit, president, lighthizer, trade


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Hopes for a trade deal rise in China as Trump and Xi prepare to meet at the G-20

Chinese President Xi Jinping (L) holds a grand ceremony to welcome U.S. President Donald Trump outside the Great Hall of the People in Beijing, China on Nov. 9, 2017. BEIJING – As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides’ expectations regarding a deal remains wide. Chinese President Xi Jinping broke his silence on Tuesday with state media announcing he is willing to discuss trade issues with Trump at next week’s G-20 meeting. The reports


Chinese President Xi Jinping (L) holds a grand ceremony to welcome U.S. President Donald Trump outside the Great Hall of the People in Beijing, China on Nov. 9, 2017. BEIJING – As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides’ expectations regarding a deal remains wide. Chinese President Xi Jinping broke his silence on Tuesday with state media announcing he is willing to discuss trade issues with Trump at next week’s G-20 meeting. The reports
Hopes for a trade deal rise in China as Trump and Xi prepare to meet at the G-20 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: evelyn cheng
Keywords: news, cnbc, companies, meet, rise, g20, prepare, jinping, chinese, china, sides, hopes, trump, deal, meeting, xi, tariffs, president, trade


Hopes for a trade deal rise in China as Trump and Xi prepare to meet at the G-20

Chinese President Xi Jinping (L) holds a grand ceremony to welcome U.S. President Donald Trump outside the Great Hall of the People in Beijing, China on Nov. 9, 2017.

BEIJING – As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides’ expectations regarding a deal remains wide.

Analysts with ties outside China see major obstacles, notably on how both sides can come to terms over the treatment of Chinese telecom giant Huawei. But after a tumultuous few weeks of increased tough talk from Beijing, the calculus of some with ties to the Chinese government is that President Donald Trump is ready to move toward an agreement.

Chinese President Xi Jinping broke his silence on Tuesday with state media announcing he is willing to discuss trade issues with Trump at next week’s G-20 meeting. The reports came less than 20 minutes after Trump tweeted that he “had a very good telephone conversation with President Xi of China” and the two would have an “extended meeting” during the gathering.

“Xi Jinping emphasized, on the issue of trade, that both sides should resolve the problem through fair dialogue; the important thing is to protect the rational concerns of both sides,” state news agency Xinhua reported, according to a CNBC translation of the Chinese-language article. “We also hope the U.S. will fairly treat Chinese enterprises.”

U.S. and Chinese stock indexes jumped, partly in anticipation that the world’s two-largest economies will reach an agreement in the trade dispute that has lasted for over a year.

“The best we can hope for from this meeting is an agreement not to raise tariffs,” Tom Rafferty, principal economist for China at The Economist Intelligence Unit, said in a phone interview Wednesday.

The key will be finding the right language that balances U.S. and Chinese interests, he said. “The risk of this falling apart and the U.S. proceeding with tariffs is quite high.”

Warding off additional tariffs and cancelling ones applied during the last 18 months have been a priority for Beijing in the trade dispute.

Earlier this month, Trump threatened tariffs on an additional $300 billion Chinese goods if Xi didn’t attend the G-20 meeting.


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: evelyn cheng
Keywords: news, cnbc, companies, meet, rise, g20, prepare, jinping, chinese, china, sides, hopes, trump, deal, meeting, xi, tariffs, president, trade


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Draghi’s dovish talk steers his successor toward a new era of stimulus

Amid a slowdown in the euro zone economy, Draghi’s dovish tone and prospects for further monetary stimulus, there are questions about the path the next president might take. However, the decision on who will be the next ECB chief is tightly linked with a few other important calls in Europe. European leaders gathering in Brussels Thursday will have their second round of talks on who should lead the European Commission — the EU’s executive arm. However, European Council President Donald Tusk, who


Amid a slowdown in the euro zone economy, Draghi’s dovish tone and prospects for further monetary stimulus, there are questions about the path the next president might take. However, the decision on who will be the next ECB chief is tightly linked with a few other important calls in Europe. European leaders gathering in Brussels Thursday will have their second round of talks on who should lead the European Commission — the EU’s executive arm. However, European Council President Donald Tusk, who
Draghi’s dovish talk steers his successor toward a new era of stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: silvia amaro
Keywords: news, cnbc, companies, ecb, policy, decision, talk, commission, era, happen, steers, successor, stimulus, draghis, european, draghi, dovish, president, leaders, council


Draghi's dovish talk steers his successor toward a new era of stimulus

Investors in Europe are likely to receive more clues this week on who will replace Mario Draghi, just days after the European Central Bank (ECB) president signaled that more accommodative policy could be on the way.

Amid a slowdown in the euro zone economy, Draghi’s dovish tone and prospects for further monetary stimulus, there are questions about the path the next president might take. However, the decision on who will be the next ECB chief is tightly linked with a few other important calls in Europe.

European leaders gathering in Brussels Thursday will have their second round of talks on who should lead the European Commission — the EU’s executive arm. Once that’s achieved, the route for choosing the next Draghi will be opened.

“We are still waiting for the Commission (decision),” a European official with knowledge of the discussions, who did not want to be named due to their sensitivity, told CNBC Wednesday over the phone.

The 28 EU heads of state are at an impasse over the Commission presidency. However, European Council President Donald Tusk, who chairs the European summits in Brussels, said Wednesday that despite different viewpoints, there’s “a common will to finalize this process soon.”

Chancellor Angela Merkel of Germany said this should happen before July 2.

EU leaders must also agree on a new foreign policy chief, a new president of the European Parliament and president of the European Council. With all these decisions, due to happen before October at the latest, they will seek a balance between nationality, gender and political affiliation.


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: silvia amaro
Keywords: news, cnbc, companies, ecb, policy, decision, talk, commission, era, happen, steers, successor, stimulus, draghis, european, draghi, dovish, president, leaders, council


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ECB vice president says another bond-buying program could be part of new stimulus

The European Central Bank’s (ECB) vice president said another large bond-buying program could be an option if inflation in the region doesn’t reach its intended target. Market players are keeping a close eye on the ECB amid concerns about growth in the 19-member region. ECB President Mario Draghi said Tuesday, with a defiantly dovish tone, that if the economic situation deteriorates in the coming months the bank would announce new stimulus. Speaking to CNBC Wednesday, ECB Vice President Luis de


The European Central Bank’s (ECB) vice president said another large bond-buying program could be an option if inflation in the region doesn’t reach its intended target. Market players are keeping a close eye on the ECB amid concerns about growth in the 19-member region. ECB President Mario Draghi said Tuesday, with a defiantly dovish tone, that if the economic situation deteriorates in the coming months the bank would announce new stimulus. Speaking to CNBC Wednesday, ECB Vice President Luis de
ECB vice president says another bond-buying program could be part of new stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: silvia amaro
Keywords: news, cnbc, companies, vice, ecb, instruments, bondbuying, program, economic, stimulus, guindos, range, growth, central, president, region


ECB vice president says another bond-buying program could be part of new stimulus

The European Central Bank’s (ECB) vice president said another large bond-buying program could be an option if inflation in the region doesn’t reach its intended target.

Market players are keeping a close eye on the ECB amid concerns about growth in the 19-member region. ECB President Mario Draghi said Tuesday, with a defiantly dovish tone, that if the economic situation deteriorates in the coming months the bank would announce new stimulus.

Speaking to CNBC Wednesday, ECB Vice President Luis de Guindos added to Draghi’s comments and outlined some possible measures the central bank could implement. “We have a wide range of instruments available: We have forward guidance, we have TLTRO (targeted longer-term refinancing operations), we have the reinvestment of the maturities of our balance sheets — so there is an ample, you know, range of instruments that we could use, and QE (quantitative easing) is one of them,” De Guindos told CNBC’s Annette Weisbach in Sintra, Portugal.

The ECB foresees “lingering softness” in the short term, in particular due to geopolitical factors and trade conflicts, which have weighed on exports and on the manufacturing sector — two important drivers of economic growth in the euro zone.


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: silvia amaro
Keywords: news, cnbc, companies, vice, ecb, instruments, bondbuying, program, economic, stimulus, guindos, range, growth, central, president, region


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Condoleezza Rice: China hurt itself by saying it wanted to dominate the tech world

China made a risky choice revealing ambitions to dominate the tech world, Condoleezza Rice told CNBC on Wednesday. Chinese smartphone and networking giant Huawei finds itself at the center of Trump administration concerns about how closely companies are tied to the government. Shortly after President Donald Trump on May 15 declared a national emergency over threats against American technology, the Commerce Department, effectively, blacklisted Huawei from conducting business with U.S. companies.


China made a risky choice revealing ambitions to dominate the tech world, Condoleezza Rice told CNBC on Wednesday. Chinese smartphone and networking giant Huawei finds itself at the center of Trump administration concerns about how closely companies are tied to the government. Shortly after President Donald Trump on May 15 declared a national emergency over threats against American technology, the Commerce Department, effectively, blacklisted Huawei from conducting business with U.S. companies.
Condoleezza Rice: China hurt itself by saying it wanted to dominate the tech world Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, technology, president, dominate, rice, tech, national, condoleezza, hurt, saying, huawei, trump, summit, think, wanted, chinese, china, told, world


Condoleezza Rice: China hurt itself by saying it wanted to dominate the tech world

China made a risky choice revealing ambitions to dominate the tech world, Condoleezza Rice told CNBC on Wednesday.

“The Chinese, I think, made a bit of a mistake when they went out and said we’re going to surpass the U.S. in quantum computing and AI [artificial intelligence] by 2030, ” said Rice, who was secretary of State and national security adviser under former President George W. Bush.

“I told some of my Chinese friends that it was a big mistake” because the U.S. and other nations were already nervous about how China might use technology for spying, she told CNBC’s Becky Quick on “Squawk Box ” from the KPMG Women’s Leadership Summit in Minnesota.

Chinese smartphone and networking giant Huawei finds itself at the center of Trump administration concerns about how closely companies are tied to the government. Huawei has maintained that it is independent.

Shortly after President Donald Trump on May 15 declared a national emergency over threats against American technology, the Commerce Department, effectively, blacklisted Huawei from conducting business with U.S. companies. About a week later, the agency put a 90-day hold on the move.

“I think any Chinese company is going to do what the Chinese government tells them to do,” said Rice, former Stanford provost and now a professor at the university’s graduate school of business. Whether in surveillance, so-called social credit, or promoting national interests, Rice said she thinks “it’s very clear that China is going to use these tools in ways that, I think, would make us all uncomfortable.”

As Washington and Beijing head into trade negotiations at next week’s G-20 summit in Japan, Rice said she’s hoping the countries can negotiate a deal on intellectual property protections and market access to end the punitive tariffs they have levied on each other.

On Tuesday, Trump announced plans to sit down with Chinese President Xi Jinping for an “extended meeting” at the summit where the two leaders are expected to discuss their ongoing trade war and technology disputes. Shortly after Trump’s tweet, Chinese state media said Xi hopes to talk about the fair treatment of Chinese companies by the U.S., in perhaps a reference to the Huawei ban.


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, technology, president, dominate, rice, tech, national, condoleezza, hurt, saying, huawei, trump, summit, think, wanted, chinese, china, told, world


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Cramer: The Fed pleased investors, but there’s ‘no escaping’ the wrath of this White House

The Federal Reserve on Wednesday gave investors a reason to be bullish, but pressure from the White House is dragging down optimism, CNBC’s Jim Cramer said. The central bank decided to hold its benchmark interest rate in place at its June meeting and signaled the possibility for a rate cut in the future to boost a slowing economy. History shows that financial, retail and housing stocks are good stocks to buy when the Fed decides to ease monetary policy, Cramer said. “I think he wants Powell to g


The Federal Reserve on Wednesday gave investors a reason to be bullish, but pressure from the White House is dragging down optimism, CNBC’s Jim Cramer said. The central bank decided to hold its benchmark interest rate in place at its June meeting and signaled the possibility for a rate cut in the future to boost a slowing economy. History shows that financial, retail and housing stocks are good stocks to buy when the Fed decides to ease monetary policy, Cramer said. “I think he wants Powell to g
Cramer: The Fed pleased investors, but there’s ‘no escaping’ the wrath of this White House Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: tyler clifford
Keywords: news, cnbc, companies, investors, pleased, war, rate, house, theres, trump, powell, wrath, white, fed, escaping, cramer, tariffs, cut, president, wants


Cramer: The Fed pleased investors, but there's 'no escaping' the wrath of this White House

The Federal Reserve on Wednesday gave investors a reason to be bullish, but pressure from the White House is dragging down optimism, CNBC’s Jim Cramer said.

The central bank decided to hold its benchmark interest rate in place at its June meeting and signaled the possibility for a rate cut in the future to boost a slowing economy. That means President Donald Trump, at least for now, did not get his wish.

“Normally I’d be telling you to buy stocks left and right with the Fed about to cut interest rates, and I still think it makes sense to be bullish,” the “Mad Money” host said. “However, with the president on the warpath, you need to be more cautious, because even if the trade war is justified, the longer it goes on … the worse it is for our economy.”

History shows that financial, retail and housing stocks are good stocks to buy when the Fed decides to ease monetary policy, Cramer said. Earnings and forecasts can get a raise from rate cuts.

The Dow Jones Industrial Average gained 0.15% Wednesday, the S&P 500 grew 0.30% and the Nasdaq Composite expanded 0.42% during the session.

“Borrowing becomes cheaper, more money flows into the system via credit, and commerce picks up,” Cramer said. “At the same time, short-term Treasurys become less attractive as investments compared to dividend yielding stocks.”

Powell, though, has to maneuver the influence of Trump, who has demanded the agency cut rates and hinted at giving the chairman a demotion.

In his press conference, Powell said the consumer is strong but business investment has slowed, particularly in manufacturing, Cramer noted. Also, the chairman said he expects to serve out his full term.

“In theory, if these negative trends continue, then employment will soon take a hit and the weakness will start bleeding over to the consumer,” Cramer said. “That’s what the Fed is ‘closely monitoring’ — that’s a phrase I told you you wanted to hear today — because it means Powell is getting ready to give us the rate cut.”

Cramer said the Fed chair “kindly and respectfully” did not blame the slowdown on tariffs, but the trade war is on the agency’s mind. The host added that Powell is “sitting on a powder keg” with Trump looming over him. Trump does not want to admit that a rate cut is needed because of the trade war and instead wants to blame it on the December rate hike, he said. Trump thinks tariffs are good for the economy, Cramer said.

“I think he wants Powell to give us a huge mea culpa. He’ll tell us that the Fed is going to cause a recession, unless Powell relents,” he said. “There is no escaping from the wrath of this White House. I bet the president will start playing the blame game right now before he heads off to the G-20 meeting.”

What will trigger Powell to reverse monetary policy is weaker numbers in employment and consumer spending, Cramer said. More tariffs on China as threatened by Trump will not push the Fed to act, he said. Powell wants to keep the nature of the Federal Reserve independent.

“That’s why I expect the president will keep hectoring him, and hectoring him, and hectoring, because Trump needs — desperately needs — to raise tariffs all over the place,” Cramer said, “and needs desperately to have a lower rates” so the economy doesn’t fail “before the election.”


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: tyler clifford
Keywords: news, cnbc, companies, investors, pleased, war, rate, house, theres, trump, powell, wrath, white, fed, escaping, cramer, tariffs, cut, president, wants


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