Germany’s Bafin bans Wirecard short positions, cites negative reports

Germany’s financial watchdog Bafin on Monday issued a ban against establishing or increasing short positions in Wirecard AG stock, citing market uncertainties due to the German payments company’s weak share performance. “There is a risk that an impact exerted on the share price of Wirecard AG as a result of net short positions being entered into or existing net short positions being increased will cause excessive price movements in the share price of Wirecard AG, given this company’s importance


Germany’s financial watchdog Bafin on Monday issued a ban against establishing or increasing short positions in Wirecard AG stock, citing market uncertainties due to the German payments company’s weak share performance. “There is a risk that an impact exerted on the share price of Wirecard AG as a result of net short positions being entered into or existing net short positions being increased will cause excessive price movements in the share price of Wirecard AG, given this company’s importance
Germany’s Bafin bans Wirecard short positions, cites negative reports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: alexander pohl, nurphoto, getty images
Keywords: news, cnbc, companies, ag, bafin, price, cites, reports, positions, share, wirecard, series, negative, financial, times, short, germanys, bans


Germany's Bafin bans Wirecard short positions, cites negative reports

Germany’s financial watchdog Bafin on Monday issued a ban against establishing or increasing short positions in Wirecard AG stock, citing market uncertainties due to the German payments company’s weak share performance.

“There is a risk that an impact exerted on the share price of Wirecard AG as a result of net short positions being entered into or existing net short positions being increased will cause excessive price movements in the share price of Wirecard AG, given this company’s importance for the economy,” Bafin added.

“Short attacks” followed and facilitated by negative reporting in the media had targeted the company between 2008 and 2016, Bafin said, adding, “through which short-sellers profited from entering into certain positions, resulting in corresponding decreases in the share price of Wirecard AG.”

Following a series of investigative reports in the Financial Times alleging fraud and creative accounting, a constituent of Germany’s blue-chip DAX index shed $10 billion in value since the Financial Times ran the first of a series of three investigative reports at the end of January.


Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: alexander pohl, nurphoto, getty images
Keywords: news, cnbc, companies, ag, bafin, price, cites, reports, positions, share, wirecard, series, negative, financial, times, short, germanys, bans


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Germany’s Bafin bans Wirecard short positions, cites negative reports

Germany’s financial watchdog Bafin on Monday issued a ban against establishing or increasing short positions in Wirecard AG stock, citing market uncertainties due to the German payments company’s weak share performance. “There is a risk that an impact exerted on the share price of Wirecard AG as a result of net short positions being entered into or existing net short positions being increased will cause excessive price movements in the share price of Wirecard AG, given this company’s importance


Germany’s financial watchdog Bafin on Monday issued a ban against establishing or increasing short positions in Wirecard AG stock, citing market uncertainties due to the German payments company’s weak share performance. “There is a risk that an impact exerted on the share price of Wirecard AG as a result of net short positions being entered into or existing net short positions being increased will cause excessive price movements in the share price of Wirecard AG, given this company’s importance
Germany’s Bafin bans Wirecard short positions, cites negative reports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: alexander pohl, nurphoto, getty images
Keywords: news, cnbc, companies, ag, bafin, price, cites, reports, positions, share, wirecard, series, negative, financial, times, short, germanys, bans


Germany's Bafin bans Wirecard short positions, cites negative reports

Germany’s financial watchdog Bafin on Monday issued a ban against establishing or increasing short positions in Wirecard AG stock, citing market uncertainties due to the German payments company’s weak share performance.

“There is a risk that an impact exerted on the share price of Wirecard AG as a result of net short positions being entered into or existing net short positions being increased will cause excessive price movements in the share price of Wirecard AG, given this company’s importance for the economy,” Bafin added.

“Short attacks” followed and facilitated by negative reporting in the media had targeted the company between 2008 and 2016, Bafin said, adding, “through which short-sellers profited from entering into certain positions, resulting in corresponding decreases in the share price of Wirecard AG.”

Following a series of investigative reports in the Financial Times alleging fraud and creative accounting, a constituent of Germany’s blue-chip DAX index shed $10 billion in value since the Financial Times ran the first of a series of three investigative reports at the end of January.


Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: alexander pohl, nurphoto, getty images
Keywords: news, cnbc, companies, ag, bafin, price, cites, reports, positions, share, wirecard, series, negative, financial, times, short, germanys, bans


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China’s inflation slows in January, potentially pushing officials to step in, says economist

CPI eased due to a decline in food prices, wrote Dong Yaxiu, a statistics bureau official, in an analysis of the data. Meanwhile, producer inflation rose just 0.1 percent from a year ago, compared to a 0.2 percent rise expected by economists polled by Reuters. China’s December Producer Price Index — which measures price increases before they reach the consumer — had risen 0.9 percent on-year. While CPI remains at a “comfortable level,” Evans-Pritchard said in a note on Friday that the weak produ


CPI eased due to a decline in food prices, wrote Dong Yaxiu, a statistics bureau official, in an analysis of the data. Meanwhile, producer inflation rose just 0.1 percent from a year ago, compared to a 0.2 percent rise expected by economists polled by Reuters. China’s December Producer Price Index — which measures price increases before they reach the consumer — had risen 0.9 percent on-year. While CPI remains at a “comfortable level,” Evans-Pritchard said in a note on Friday that the weak produ
China’s inflation slows in January, potentially pushing officials to step in, says economist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: huileng tan, getty images
Keywords: news, cnbc, companies, producer, weak, officials, inflation, statistics, risen, senior, wrote, slows, prices, chinas, price, step, economist, cpi, pushing, potentially


China's inflation slows in January, potentially pushing officials to step in, says economist

China’s Consumer Price Index missed expectations in January coming in at 1.7 percent higher than a year ago, the National Bureau of Statistics said on Friday.

Economists polled by Reuters were expecting CPI to come in at 1.9 percent higher year-over-year. December CPI — a gauge of prices for goods and services — had risen 1.9 percent on-year.

CPI eased due to a decline in food prices, wrote Dong Yaxiu, a statistics bureau official, in an analysis of the data.

Meanwhile, producer inflation rose just 0.1 percent from a year ago, compared to a 0.2 percent rise expected by economists polled by Reuters. China’s December Producer Price Index — which measures price increases before they reach the consumer — had risen 0.9 percent on-year.

January marked the seventh straight month of slowing factory gate inflation, according to Reuters records.

The below-consensus inflation figures suggest that demand “remained sluggish” at the start of 2019, which may spur official action to support the economy, wrote Julian Evans-Pritchard, senior China economist at Capital Economics.

While CPI remains at a “comfortable level,” Evans-Pritchard said in a note on Friday that the weak producer price numbers are “a concern since these are highly correlated with profit growth in industry.”

He predicted Beijing will roll out measures, such as cutting benchmark lending rates, to ease financial pressure on industrial firms as factory gate inflation looks to deepen in the months ahead.

However, weak producer prices do not always feed through into the CPI due to the concentration of heavy industries in the PPI, said Sian Fenner, a senior economist at Oxford Economics. Weak oil prices recently weighed on PPI, she noted.

“We are still expecting the disparity between the two to continue,” she told CNBC.

The data comes amid a new round of U.S.-China talks in Beijing this week as the world’s two largest economies renewed efforts to reach a deal to defuse trade tensions.


Company: cnbc, Activity: cnbc, Date: 2019-02-15  Authors: huileng tan, getty images
Keywords: news, cnbc, companies, producer, weak, officials, inflation, statistics, risen, senior, wrote, slows, prices, chinas, price, step, economist, cpi, pushing, potentially


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Traders expect Nvidia to see a huge move on earnings

Nvidia finds itself right in the middle of the pack, rallying 15 percent after a brutal end to 2018 cut the stock in half. “The implied movement is pretty big, and [Nvidia] has been an aggressive mover on earnings news over the last few months,” Nathan said Wednesday on CNBC’s “Fast Money.” “If you think back to Nov. 15, the company reported a very disappointing result, the stock was down 20 percent. Nathan noted that the current implied move for Nvidia stock is roughly 7 percent in either direc


Nvidia finds itself right in the middle of the pack, rallying 15 percent after a brutal end to 2018 cut the stock in half. “The implied movement is pretty big, and [Nvidia] has been an aggressive mover on earnings news over the last few months,” Nathan said Wednesday on CNBC’s “Fast Money.” “If you think back to Nov. 15, the company reported a very disappointing result, the stock was down 20 percent. Nathan noted that the current implied move for Nvidia stock is roughly 7 percent in either direc
Traders expect Nvidia to see a huge move on earnings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: tyler bailey, akio kon, bloomberg, getty images, andrew caballero-reynolds, afp, david a grogan
Keywords: news, cnbc, companies, earnings, traders, weekly, company, stock, huge, options, implied, price, expect, 15, nvidia, atthemoney


Traders expect Nvidia to see a huge move on earnings

Chip stocks are ripping in 2019, can Nvidia’s earnings report keep the rally going? 23 Hours Ago | 03:43

Semiconductors are surging this year. The SMH ETF that tracks the space is up 17 percent in 2019, with a number of names in the group soaring double digits.

Nvidia finds itself right in the middle of the pack, rallying 15 percent after a brutal end to 2018 cut the stock in half. The company is scheduled to report earnings after the bell Thursday, and while Nvidia issued a warning last month, the options market is still expecting a big move for the chip stock, said RiskReversal.com’s Dan Nathan.

“The implied movement is pretty big, and [Nvidia] has been an aggressive mover on earnings news over the last few months,” Nathan said Wednesday on CNBC’s “Fast Money.” “If you think back to Nov. 15, the company reported a very disappointing result, the stock was down 20 percent. Then, just last month, Jan. 25, the company pre-announced a negative quarter and the stock was down 15 percent,” he added.

Nathan noted that the current implied move for Nvidia stock is roughly 7 percent in either direction.

But what is an implied move, and how do you calculate it?

The implied move refers to the price of the at-the-money put plus the price of the at-the-money call, divided by the strike price. This can help give investors clues as to where the options market expects a particular stock to trade by a given date.

“If I know that [Nvidia] is reporting on Thursday after the close, I can look at the at-the-money straddle, the weekly options. When the stock was trading at $155, the weekly 155-call was offered at $5.50, the weekly 155-put was offered at $5.50. Together, that makes $11,” Nathan said.


Company: cnbc, Activity: cnbc, Date: 2019-02-14  Authors: tyler bailey, akio kon, bloomberg, getty images, andrew caballero-reynolds, afp, david a grogan
Keywords: news, cnbc, companies, earnings, traders, weekly, company, stock, huge, options, implied, price, expect, 15, nvidia, atthemoney


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Digital Currency Group CEO says most cryptocurrencies will fail, but bitcoin is still king

Barry Silbert, CEO and founder of Digital Currency Group, said besides bitcoin the majority of the once blazing hot crypto market will eventually be worthless. The world’s first and best-known digital currency is down more than 80 percent since its peak and was trading near $3,572 as of Wednesday. Digital Currency Group has made the most active seed investments in the industry, more than three times the amount of Andreessen Horowitz, according to Pitchbook. The company owns and operates bitcoin


Barry Silbert, CEO and founder of Digital Currency Group, said besides bitcoin the majority of the once blazing hot crypto market will eventually be worthless. The world’s first and best-known digital currency is down more than 80 percent since its peak and was trading near $3,572 as of Wednesday. Digital Currency Group has made the most active seed investments in the industry, more than three times the amount of Andreessen Horowitz, according to Pitchbook. The company owns and operates bitcoin
Digital Currency Group CEO says most cryptocurrencies will fail, but bitcoin is still king Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: kate rooney, david a grogan
Keywords: news, cnbc, companies, fail, money, majority, cryptocurrencies, digital, gold, king, currency, ceo, market, investors, price, group, bitcoin, silbert


Digital Currency Group CEO says most cryptocurrencies will fail, but bitcoin is still king

A bear market could be just the beginning of the pain for most cryptocurrencies, according to one widely followed industry expert.

Barry Silbert, CEO and founder of Digital Currency Group, said besides bitcoin the majority of the once blazing hot crypto market will eventually be worthless.

“I’m not a believer in the vast majority of digital tokens and believe most will go to zero,” Silbert told CNBC in a phone interview following its quarterly call with investors.

The rise in initial coin offerings helped bring the industry’s market capitalization to more than $800 billion at the start of last year, according to CoinMarketCap.com. Bitcoin made up roughly 50 percent of that total, with its price climbing to nearly $20,000 in December 2017. Amidst the buying mania, Initial coin offerings, or ICOs, became a popular way to raise money from eager retail investors. But they often touted a project that wasn’t live yet, or in some cases turned out to be outright fraud.

“Almost every ICO was just an attempt to raise money but there was no use for the underlying token,” Silbert said. “The vast majority of what’s out there will be eliminated.”

That elimination is already starting. The Securities and Exchange Commission cracked down on the fundraising method last year, and Chairman Jay Clayton repeatedly urged crypto founders to register with the agency. Silbert applauded the SEC’s actions and said most of the tokens were illegal offerings.

Bitcoin’s price, along with that of other other major cryptocurrencies, came crashing down last year. The world’s first and best-known digital currency is down more than 80 percent since its peak and was trading near $3,572 as of Wednesday.

Still, Silbert said he is “as bullish as he has ever been” on bitcoin. As an early investor, he lived through multiple price plunges, all of which were followed by a full recovery. Despite bitcoin’s relatively short 10-year existence, it’s already on its third bear market plunge of 80 percent or more. The most recent one has yet to bounce back.

Although bitcoin has seen “a really ugly technical chart,” Silbert said there’s still a high degree of interest from institutional investors. Digital Currency Group has made the most active seed investments in the industry, more than three times the amount of Andreessen Horowitz, according to Pitchbook. The company owns and operates bitcoin brokerage firm Genesis Trading, and the largest digital currency asset management firm, Grayscale Investments.

Grayscale also started the first publicly traded bitcoin investment vehicle, the Bitcoin Investment Trust, which trades under the symbol GBTC on over the counter markets.

Part of the upside Silbert sees in bitcoin is based on its potential to replace gold as a safe haven asset.

“As far as I’m concerned bitcoin has won the race to be digital gold,” Silbert said.

Younger investors don’t view gold as the same non-correlated, safe haven as their parents, Silbert said. He quoted an Accenture statistic on the investor call, that $30 trillion of baby boomer wealth is going to be handed down in the next 20 years. Some of that is currently in gold, which Silbert is predicting a younger generation would convert to bitcoin as a hedge instead.

“I’m convinced that whatever money is in gold is not going to stay in gold,” Silbert said. “That gets handed down to millennials — I’m highly confident a lot of that will go into bitcoin.”

He said the speculation use case has been proven for bitcoin as a “buy and hold strategy.” But the question of when meaningful institutional money starts flowing in still remains. Silbert said that heading into 2019, the infrastructure for that to happen safely is finally in place. Fidelity’s custody solution and other investment opportunities like a futures market from the Intercontinental Exchange, parent company of the New York Stock Exchange, are all set to go live early this year.

If and when sentiment changes, Silbert predicted bitcoin prices would “snap back hard.”

“There are certainty institutional investors that have put money to work and many more are are considering it,” Silbert said. “Until now they wanted to make sure they’re not catching a falling knife.”


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: kate rooney, david a grogan
Keywords: news, cnbc, companies, fail, money, majority, cryptocurrencies, digital, gold, king, currency, ceo, market, investors, price, group, bitcoin, silbert


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Digital Currency Group CEO says most cryptocurrencies will fail, but bitcoin is still king

Barry Silbert, CEO and founder of Digital Currency Group, said besides bitcoin the majority of the once blazing hot crypto market will eventually be worthless. The world’s first and best-known digital currency is down more than 80 percent since its peak and was trading near $3,572 as of Wednesday. Digital Currency Group has made the most active seed investments in the industry, more than three times the amount of Andreessen Horowitz, according to Pitchbook. The company owns and operates bitcoin


Barry Silbert, CEO and founder of Digital Currency Group, said besides bitcoin the majority of the once blazing hot crypto market will eventually be worthless. The world’s first and best-known digital currency is down more than 80 percent since its peak and was trading near $3,572 as of Wednesday. Digital Currency Group has made the most active seed investments in the industry, more than three times the amount of Andreessen Horowitz, according to Pitchbook. The company owns and operates bitcoin
Digital Currency Group CEO says most cryptocurrencies will fail, but bitcoin is still king Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: kate rooney, david a grogan
Keywords: news, cnbc, companies, fail, money, majority, cryptocurrencies, digital, gold, king, currency, ceo, market, investors, price, group, bitcoin, silbert


Digital Currency Group CEO says most cryptocurrencies will fail, but bitcoin is still king

A bear market could be just the beginning of the pain for most cryptocurrencies, according to one widely followed industry expert.

Barry Silbert, CEO and founder of Digital Currency Group, said besides bitcoin the majority of the once blazing hot crypto market will eventually be worthless.

“I’m not a believer in the vast majority of digital tokens and believe most will go to zero,” Silbert told CNBC in a phone interview following its quarterly call with investors.

The rise in initial coin offerings helped bring the industry’s market capitalization to more than $800 billion at the start of last year, according to CoinMarketCap.com. Bitcoin made up roughly 50 percent of that total, with its price climbing to nearly $20,000 in December 2017. Amidst the buying mania, Initial coin offerings, or ICOs, became a popular way to raise money from eager retail investors. But they often touted a project that wasn’t live yet, or in some cases turned out to be outright fraud.

“Almost every ICO was just an attempt to raise money but there was no use for the underlying token,” Silbert said. “The vast majority of what’s out there will be eliminated.”

That elimination is already starting. The Securities and Exchange Commission cracked down on the fundraising method last year, and Chairman Jay Clayton repeatedly urged crypto founders to register with the agency. Silbert applauded the SEC’s actions and said most of the tokens were illegal offerings.

Bitcoin’s price, along with that of other other major cryptocurrencies, came crashing down last year. The world’s first and best-known digital currency is down more than 80 percent since its peak and was trading near $3,572 as of Wednesday.

Still, Silbert said he is “as bullish as he has ever been” on bitcoin. As an early investor, he lived through multiple price plunges, all of which were followed by a full recovery. Despite bitcoin’s relatively short 10-year existence, it’s already on its third bear market plunge of 80 percent or more. The most recent one has yet to bounce back.

Although bitcoin has seen “a really ugly technical chart,” Silbert said there’s still a high degree of interest from institutional investors. Digital Currency Group has made the most active seed investments in the industry, more than three times the amount of Andreessen Horowitz, according to Pitchbook. The company owns and operates bitcoin brokerage firm Genesis Trading, and the largest digital currency asset management firm, Grayscale Investments.

Grayscale also started the first publicly traded bitcoin investment vehicle, the Bitcoin Investment Trust, which trades under the symbol GBTC on over the counter markets.

Part of the upside Silbert sees in bitcoin is based on its potential to replace gold as a safe haven asset.

“As far as I’m concerned bitcoin has won the race to be digital gold,” Silbert said.

Younger investors don’t view gold as the same non-correlated, safe haven as their parents, Silbert said. He quoted an Accenture statistic on the investor call, that $30 trillion of baby boomer wealth is going to be handed down in the next 20 years. Some of that is currently in gold, which Silbert is predicting a younger generation would convert to bitcoin as a hedge instead.

“I’m convinced that whatever money is in gold is not going to stay in gold,” Silbert said. “That gets handed down to millennials — I’m highly confident a lot of that will go into bitcoin.”

He said the speculation use case has been proven for bitcoin as a “buy and hold strategy.” But the question of when meaningful institutional money starts flowing in still remains. Silbert said that heading into 2019, the infrastructure for that to happen safely is finally in place. Fidelity’s custody solution and other investment opportunities like a futures market from the Intercontinental Exchange, parent company of the New York Stock Exchange, are all set to go live early this year.

If and when sentiment changes, Silbert predicted bitcoin prices would “snap back hard.”

“There are certainty institutional investors that have put money to work and many more are are considering it,” Silbert said. “Until now they wanted to make sure they’re not catching a falling knife.”


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: kate rooney, david a grogan
Keywords: news, cnbc, companies, fail, money, majority, cryptocurrencies, digital, gold, king, currency, ceo, market, investors, price, group, bitcoin, silbert


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Tesla is not ‘quite out of the woods yet,’ says Morgan Stanley’s Adam Jonas

Tesla has made progress reducing its cash burn but the electric-car maker is not “quite out of the woods yet,” Morgan Stanley’s Adam Jonas told CNBC on Wednesday. The key for Tesla is to expand beyond a “standalone electric car company” and find resilience as competition in the electric space heats up, said Jonas, who gained a wide following on Wall Street for predicting the rise of Tesla and electric vehicles. Tesla plans to reveal an electric truck this summer, but a counterpart can gain an ed


Tesla has made progress reducing its cash burn but the electric-car maker is not “quite out of the woods yet,” Morgan Stanley’s Adam Jonas told CNBC on Wednesday. The key for Tesla is to expand beyond a “standalone electric car company” and find resilience as competition in the electric space heats up, said Jonas, who gained a wide following on Wall Street for predicting the rise of Tesla and electric vehicles. Tesla plans to reveal an electric truck this summer, but a counterpart can gain an ed
Tesla is not ‘quite out of the woods yet,’ says Morgan Stanley’s Adam Jonas Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: tyler clifford
Keywords: news, cnbc, companies, price, truck, electric, quite, company, plans, jonas, rivian, adam, pickup, say, morgan, stanleys, woods, tesla


Tesla is not 'quite out of the woods yet,' says Morgan Stanley's Adam Jonas

Tesla has made progress reducing its cash burn but the electric-car maker is not “quite out of the woods yet,” Morgan Stanley’s Adam Jonas told CNBC on Wednesday.

The auto analyst expects Tesla to burn about $600 million, possibly as much as $1 billion, in cash in the first quarter, but said a partnership with a tech company or another original equipment manufacturer “could go a long way.”

The key for Tesla is to expand beyond a “standalone electric car company” and find resilience as competition in the electric space heats up, said Jonas, who gained a wide following on Wall Street for predicting the rise of Tesla and electric vehicles.

“The biggest question for Tesla share price, let’s say over the next 12 months … is this company finally at a point where it’s self-financing, where it doesn’t need external equity capital to fund its very ambitious plans?” he said on “Fast Money.”

Tesla plans to reveal an electric truck this summer, but a counterpart can gain an edge with its own electric powertrain in the pickup truck market, Jonas said.

Morgan Stanley has a price target of $283 for the stock, which is more than 8 percent lower than its Wednesday close of about $308.

Tesla faces tougher questions as General Motors and Amazon are rumored to be investing in Rivian Automotive, a Detroit-based technology start-up that is the firm’s top pick to compete with Tesla in the near future. Jonas sees Rivian as the next leader in electric pickup trucks.

“Rivian and other start-ups that can get access to the best talent and … capital and … have the business-model chops of an Amazon behind it, that could pose … a much more serious threat to Tesla than, say, the Germans who will have EVs,” Jonas said Wednesday, “but the cultural issues are real limiting factors in our opinion.”


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: tyler clifford
Keywords: news, cnbc, companies, price, truck, electric, quite, company, plans, jonas, rivian, adam, pickup, say, morgan, stanleys, woods, tesla


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Headlines say there’s no inflation, but look at what’s getting more expensive

“Please stop telling me there is no inflation,” Peter Boockvar, chief investment officer Bleakley Advisory Group, said in a note on Wednesday after the consumer price index report. He pointed out that services inflation excluding energy has grown persistently with a 0.2 percent increase month-over-month and 2.8 percent year-over-year. The headline figure saw no change in January largely because cheaper gasoline offset the increases in other areas. Gasoline prices fell 5.5 percent last month afte


“Please stop telling me there is no inflation,” Peter Boockvar, chief investment officer Bleakley Advisory Group, said in a note on Wednesday after the consumer price index report. He pointed out that services inflation excluding energy has grown persistently with a 0.2 percent increase month-over-month and 2.8 percent year-over-year. The headline figure saw no change in January largely because cheaper gasoline offset the increases in other areas. Gasoline prices fell 5.5 percent last month afte
Headlines say there’s no inflation, but look at what’s getting more expensive Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: yun li, spencer platt, getty images
Keywords: news, cnbc, companies, tuition, price, headline, energy, inflation, headlines, look, gasoline, whats, yearoveryearthe, say, expensive, getting, increase, prices, theres, 02


Headlines say there's no inflation, but look at what's getting more expensive

“Please stop telling me there is no inflation,” Peter Boockvar, chief investment officer Bleakley Advisory Group, said in a note on Wednesday after the consumer price index report. He pointed out that services inflation excluding energy has grown persistently with a 0.2 percent increase month-over-month and 2.8 percent year-over-year.

The headline figure saw no change in January largely because cheaper gasoline offset the increases in other areas. Gasoline prices fell 5.5 percent last month after dropping 5.8 percent in December.

On the surface, the headline CPI number is showing that inflation is contained. But the core rate of inflation, which doesn’t consider energy and food prices because they fluctuate easily, has risen 0.2 percent for each of the past five months.

Another price increase that is essential to the average family is tuition. In January, college tuition and fees were higher by 2.9 percent on a year-over-year basis, while elementary and high school tuition was up by 4.4 percent.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: yun li, spencer platt, getty images
Keywords: news, cnbc, companies, tuition, price, headline, energy, inflation, headlines, look, gasoline, whats, yearoveryearthe, say, expensive, getting, increase, prices, theres, 02


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Common pitfalls for new options traders

When it comes to options trading, education and awareness are important for establishing a strong foundation. Regardless of whether you fall into one of those categories or not, this article is meant to highlight some common hazards that may be encountered by options traders and potentially help you avoid them. I’m not trying to deter you from options, because they aren’t necessarily riskier than stocks, it’s just that you should have an understanding of how they work before engaging any options


When it comes to options trading, education and awareness are important for establishing a strong foundation. Regardless of whether you fall into one of those categories or not, this article is meant to highlight some common hazards that may be encountered by options traders and potentially help you avoid them. I’m not trying to deter you from options, because they aren’t necessarily riskier than stocks, it’s just that you should have an understanding of how they work before engaging any options
Common pitfalls for new options traders Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: provided schwab, nathan peterson
Keywords: news, cnbc, companies, option, common, stock, trade, options, trading, strategy, position, price, calls, pitfalls, traders


Common pitfalls for new options traders

When it comes to options trading, education and awareness are important for establishing a strong foundation. Consider these common mistakes that traders often encounter.

If you are reading this article there’s a good chance that you have never traded options or are just getting started. Regardless of whether you fall into one of those categories or not, this article is meant to highlight some common hazards that may be encountered by options traders and potentially help you avoid them. If you are considering options trading but you don’t have a lot of experience trading stocks, I’d suggest gaining more experience with trading stocks before venturing into the world of derivatives.

Options fall into the category of derivatives because their value is “derived” from a different (underlying) asset, such as a stock, index or ETF.

However, options are sophisticated instruments and have different risks that you won’t find in stocks. Therefore, education and understanding are crucial before placing your first trade or determining whether options are appropriate for you. I’m not trying to deter you from options, because they aren’t necessarily riskier than stocks, it’s just that you should have an understanding of how they work before engaging any options strategy. The intent of this article is to provide a better understanding of those nuances and potentially help you avoid some of the mistakes highlighted below.

Pitfall #1: Over-leveraging

Options are leveraged products, meaning that each standard call or put is equal to 100 shares of the underlying stock or ETF, and they cost significantly less to initiate versus an equivalent stock/ETF position. When you first begin trading options you may realize that you have additional capital to put to work that may have been tied up with equivalent stock/ETF positions in the past. Therefore, there may be a tendency to use that capital to purchase additional contracts on the same position or extend yourself into other positions that you might otherwise not have acquired due to capital constraints.

Regardless of the strategy or the number of shares you own on a given stock, you may want to consider starting with small contract positions in the beginning until you gain more experience with options. For example, if you own 500 shares of XYZ and are interested in generating some income on this position, you might consider selling only one or two covered calls against the position in the beginning. Then after expiration you can determine how you want to proceed (sell the same number of contracts or more, or select another position to sell calls against, etc.).

Pitfall #2: Using long near-term calls or puts for speculation

When buying long options, it’s not uncommon for new option traders to gravitate toward near-term call or put options because of the lower relative prices and the potential to achieve higher percentage returns. It’s not that you can’t trade long call and put options successfully; it’s just that most new option traders don’t fully understand the impact of time decay, especially for near-dated option contracts. Looking at the time decay curve below, you can see that the rate of decay generally accelerates as the option approaches its expiration date, especially for at-the-money options:

Yes, you can potentially achieve big percentage returns by buying short-dated options but that also tends to be where the highest degree of risk occurs. If you decide to buy calls or puts in order to speculate on near-term stock movement, understand that time is working against you so you’ll typically need the stock to make a sizeable move in a relatively short period of time in order to make a profit. Therefore, if you decide to buy them you may want to consider a shorter-term mindset and be willing to take a quicker profit or loss than you might otherwise take with other options strategies. The above chart helps illustrate why many option traders prefer to sell near-dated options and take advantage of that accelerated time decay.

Pitfall #3: Altering your trading strategy on a losing trade

This pitfall could essentially apply to any trading strategy with any financial product, but it’s important to highlight since options are a leveraged instrument. As you are probably aware, when it comes to trading it’s important to have a willingness to admit you are wrong when a trade turns against you and exit the position to avoid additional losses.

However, since there is a financial as well as an emotional investment (i.e. pride) in every trade that you place, there can be a tendency to justify an adjustment to your original trading strategy in an effort to potentially avert a loss. This potential problem could arise in a number of forms so keep an eye out for the following behaviors:

Refraining from exiting the losing trade to avoid the potential regret if the stock reverses course after you close out the position

Doubling the contract quantity of your option position (i.e. “doubling down”) in an effort to improve your break-even/profit price points on a losing trade

Taking on more risk (increasing your normal contract quantity) on your next trade following a losing trade to offset the negative emotion associated with the previous loss

Going back to a stock that you lost money on in an effort to “get it back”

The bottom line is that all traders encounter losing trades but those who learn how to cut losses and move on tend to have more success in the long run.

Pitfall #4: Not being aware of the strategy trade-off

Every option strategy provides a benefit and has a corresponding trade-off in exchange for that benefit. If you are a Schwab client and brand new to options trading, you will likely be approved for options level 0, which essentially includes the income generating and/or protective options strategies: covered calls, protective puts (for stocks), covered puts, protective calls and collars. Often the first trade that a new options trader places is a covered call trade, which involves selling a call against an existing stock position to generate a small amount of income on that position. This is often the most appropriate options strategy for beginners since it can help you monitor and understand how option prices fluctuate over time.

However, it’s important to understand that while the benefit of this strategy is potential income generation, the trade-off is that you sacrifice the potential upside gain on the stock beyond the strike price of the call. For example, if you sell a $65.00 strike call against your XYZ stock position for $1.00 and XYZ gaps up to $75.00 on positive news afterwards, you are obligated to sell your position at $65.00 at any time until expiration (assuming it is still trading above $65.00), and you will not profit on any of the stock price movement from $65.00 to $75.00.

Pitfall #5: Believing that the more complex the strategy is, the more profitable it will be

Like other investment products that are publicly traded, options are priced very efficiently. Options are listed on exchanges and allow you to take either side of the market, meaning if you believe a quoted price on a given call or put is too low or too high you can decide to take the other side of the market and buy or sell that option. In other words, option prices are efficiently priced and reflect the known information about the underlying security.

There may be a tendency for new options traders to believe that the more sophisticated the option strategy, or the more legs the strategy has, the more likely it will be to make money, but this simply isn’t the case because of that price efficiency. While each options strategy offers its own unique risk/reward characteristics and some may be more appropriate than others based on your objective in a given circumstance, don’t assume that you will have a higher probability of success if you trade the more complex strategies. Many options traders use covered calls and cash-secured equity puts and are generally satisfied sticking with those strategies. The important thing is that you find a strategy that you are both familiar and comfortable with.

Final Tips

Whatever option strategy you start with, I suggest paper trading the intended strategy and tracking the results before putting real money to work.

Always use limit orders when you place an order, which may allow you to get some price improvement from the quoted bid or ask price. Though limit orders could also cause you to miss the trade altogether if the price moves away from you.

You don’t have to hold any options position, long or short, until expiration. If your reason for entering the trade changes (i.e. you bought a protective put but now you no longer feel concerned about the potential downside) then consider exiting the trade to preserve capital and/or time value.

I hope that the above information helps you avoid unnecessary mistakes and perhaps trade with a little more confidence. For more information regarding the options strategies above, please visit Trading Insights on Schwab.com.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: provided schwab, nathan peterson
Keywords: news, cnbc, companies, option, common, stock, trade, options, trading, strategy, position, price, calls, pitfalls, traders


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$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he


There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he
$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


$60 to $70 is a fair price for a barrel of oil, Egypt's petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla.

“It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy.

“If prices of crude increase significantly we would start to see inflation and an exaggeration in the slowdown in consumption from the other side. If we see prices go down below a certain price then we will see a slowdown in investments,” he said.

“So, actually, the fair equation is to have a balanced price between the producers and the consumers whereby each party is happy and to continue the growth of the global economy.”

Egypt is a significant oil and natural gas producer in the Middle East although it’s not a member of OPEC and its output is dwarfed by members of the oil producing group and other non-OPEC producers like Russia.

Egypt is aiming to boost production modestly in 2019, to 670,000 barrels a day, although its output still trails that of others in the region. The latest figures from OPEC’s monthly report in January showed that Egypt’s oil producing neighbors to the west, Libya and Algeria, produced 928,000 barrels a day and a million barrels a day respectively in December. OPEC lynchpin Saudi Arabia produced 10.5 million barrels a day.

OPEC and non-OPEC producers including Russia (collectively known as ‘OPEC plus’) have collaborated in recent years on cutting or increasing their oil production in a bid to stabilize oil prices which have been volatile since 2014.

They last agreed in December to cut oil production by 1.2 million barrels a day in order to put a floor under prices, which have fallen due to rising oil supply and lackluster demand amid an uncertain global growth outlook.

On Monday morning, Brent crude futures were trading at $61.87 a barrel while West Texas Intermediate (WTI) crude futures was trading at $52.25 a barrel. Prices took a dip in the early trading session on Monday after data showed drilling activity in the U.S., now the world’s largest oil producer, had increased again, pointing higher production.

The OPEC-Plus deal has not yet been realized fully with Russia slower to meet the desired output cut. Once the 1.2 million barrel a day cut was reached, El Molla said “I think it will adjust, and reach, the desired outcome of price.”

Speaking to CNBC’s Dan Murphy at the Egypt Petroleum Show, ‘EGYPS, ‘taking place in Cairo, El Molla said oil markets were “somehow close” to a price that can keep both oil producers happy because although oil prices have fallen from peaks of around $114 a barrel in mid-2014, production costs have also fallen with technological advances.

“With the advancement of technology, new ways of producing oil have added new volumes to the market and this technology means you’re reducing the cost per barrel, and what might have been accepted a few years ago back when we were talking about $100, or $90 or $80, a barrel oil wouldn’t be accepted now.”


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


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