Oil surges as US ends Iran sanction waivers—four experts forecast what’s next

Crude prices surged after the announcement, with the U.S. benchmark, West Texas Intermediate crude, gaining nearly 3 percent. So I think that’s one potential silver lining of higher oil. And so my guess is that economic activity stays where it is [and] oil prices will remain relatively constant. That’s going to couple with what we’ve been seeing in Venezuela, this likely forcing the oil price up [like] we’ve seen this morning. RBC Capital Markets’ head of U.S. equity strategy, Lori Calvasina, wa


Crude prices surged after the announcement, with the U.S. benchmark, West Texas Intermediate crude, gaining nearly 3 percent. So I think that’s one potential silver lining of higher oil. And so my guess is that economic activity stays where it is [and] oil prices will remain relatively constant. That’s going to couple with what we’ve been seeing in Venezuela, this likely forcing the oil price up [like] we’ve seen this morning. RBC Capital Markets’ head of U.S. equity strategy, Lori Calvasina, wa
Oil surges as US ends Iran sanction waivers—four experts forecast what’s next Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-22  Authors: lizzy gurdus, eddie seal, bloomberg, getty images, johannes eisele, afp, anna moneymaker, kcna, thomas barwick getty images, source
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Oil surges as US ends Iran sanction waivers—four experts forecast what's next

Things are heating up in the energy market.

The Trump administration announced Monday that it would end exemptions to its sanctions on Iran, a move meant to significantly curb Iran’s oil output. Crude prices surged after the announcement, with the U.S. benchmark, West Texas Intermediate crude, gaining nearly 3 percent.

Here’s what experts say higher oil prices could mean for the broader market:

Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Merrill Lynch, said a significant uptick in the price of crude would likely be a double-edged sword:

“[Higher] oil is actually good for corporate profits because the S&P [500] is levered to oil, so I think this could be a source of positive earnings surprise[s] for the year where analysts are penciling in super low expectations. So I think that’s one potential silver lining of higher oil. And then … consumers are making more money, so we might not feel that energy pinch until we get to higher levels. But $5 a gallon in California is not a good environment to be in, so we’re getting to a point where this could turn ugly.”

Aperture Investors CEO Peter Kraus didn’t anticipate major changes to the status quo:

“I think the oil prices are going to continue to reflect this sort of restriction in supply. And we’re not going to see a lot of new drilling based on these prices. We’re not going to see more holes being punched into the world to create more oil at these current prices. And so my guess is that economic activity stays where it is [and] oil prices will remain relatively constant. […] People predicted oil was going to go to $100, $120 a barrel, which I don’t see happening.”

Alex Dryden, global market strategist at J.P. Morgan, said macroeconomic global risks could catch up to the oil market itself:

“I think what you’re looking at is incoming restrictions on supply. That’s going to couple with what we’ve been seeing in Venezuela, this likely forcing the oil price up [like] we’ve seen this morning. Now, again, it’s about how sustainable that oil price is. You look at … the futures market. Go three years out — you typically go out that far when you want to take out political risk and look at how much geopolitical risk premium [is] priced into oil. Right now, it’s some of the highest levels since the Arab Spring. That’s not exactly a great backdrop for energy companies to really be able to continue to put that oil number in in a reliable way going forward. So, certainly some question marks over it.”

RBC Capital Markets’ head of U.S. equity strategy, Lori Calvasina, was fairly bullish on the prospect of higher oil prices for the broader market:


Company: cnbc, Activity: cnbc, Date: 2019-04-22  Authors: lizzy gurdus, eddie seal, bloomberg, getty images, johannes eisele, afp, anna moneymaker, kcna, thomas barwick getty images, source
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Oil surges 2.7% to nearly 6-month high, settling at $65.70, after Trump cracks down on Iran exports

The administration said the State Department will cease granting sanctions waivers to any country still importing Iranian crude or condensate, an ultra-light form of crude oil, after May 2. Brent crude, the international benchmark for oil prices, settled $2.07 higher at $74.04, rising 2.9% for its best closing price since Oct. 31, 2018. U.S. West Texas Intermediate crude futures settled $1.70 higher at $65.70, surging 2.7% to a nearly six-month closing high. The surprise move is driving the brea


The administration said the State Department will cease granting sanctions waivers to any country still importing Iranian crude or condensate, an ultra-light form of crude oil, after May 2. Brent crude, the international benchmark for oil prices, settled $2.07 higher at $74.04, rising 2.9% for its best closing price since Oct. 31, 2018. U.S. West Texas Intermediate crude futures settled $1.70 higher at $65.70, surging 2.7% to a nearly six-month closing high. The surprise move is driving the brea
Oil surges 2.7% to nearly 6-month high, settling at $65.70, after Trump cracks down on Iran exports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-22  Authors: tom dichristopher, weizhen tan
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Oil surges 2.7% to nearly 6-month high, settling at $65.70, after Trump cracks down on Iran exports

Oil prices surged about 3% at midday on Monday, hitting fresh 2019 highs, after the Trump administration announced that all oil buyers will have to end imports from Iran in just over a week or be subject to U.S. sanctions.

The administration said the State Department will cease granting sanctions waivers to any country still importing Iranian crude or condensate, an ultra-light form of crude oil, after May 2.

Brent crude, the international benchmark for oil prices, settled $2.07 higher at $74.04, rising 2.9% for its best closing price since Oct. 31, 2018. Brent rose as high as $74.52 per barrel around midday, sailing past last week’s 2019 intraday peak at $72.27.

U.S. West Texas Intermediate crude futures settled $1.70 higher at $65.70, surging 2.7% to a nearly six-month closing high. WTI earlier rose as high as $65.92, the strongest level since Oct. 31, 2018. WTI had been trading sideways for about two weeks after peaking at $64.79 earlier in the month.

Crude futures first hit new 2019 highs following report by the Washington Post on the Trump administration’s new policy.

The surprise move is driving the breakout in oil prices, said Michael Bradley, equity strategist at investment bank Tudor Pickering Holt.

“Crude markets were taken by surprise today as the Trump administration indicated it WON’T renew waivers that lets countries purchase Iranian oil without facing U.S. sanctions,” he said in a research note. “Many expected that the US would take tougher action on the waiver front, but most DIDN’T expect an announcement of zero waivers.”

The U.S. reimposed sanctions in November on exports of Iranian oil after U.S. President Donald Trump unilaterally pulled out of a nuclear accord struck in 2015 between Iran and world powers. Washington, however, granted eight of Iran’s biggest oil buyers exemptions that allowed them limited purchases for an additional six months.

The eight buyers are China and India — Iran’s biggest customers — as well as Japan, South Korea, Turkey, Italy, Greece, and Taiwan. The waivers have allowed Iran to continue exporting about 1 million barrels per day, down from roughly 2.5 million bpd last year.


Company: cnbc, Activity: cnbc, Date: 2019-04-22  Authors: tom dichristopher, weizhen tan
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Netflix not concerned about lower prices, except in one huge market

If there’s a market where Netflix is concerned about plan pricing as Disney begins its big push into the video streaming market, it’s not the U.S. The struggle to get the Indian market right is not a new issue for Netflix, but it is one the company’s management team openly addressed on its Tuesday earnings call. Netflix is still one of the most expensive video streaming options in India. The Netflix Indian subscriber based has estimated by industry sources at 1 million, though the company has sa


If there’s a market where Netflix is concerned about plan pricing as Disney begins its big push into the video streaming market, it’s not the U.S. The struggle to get the Indian market right is not a new issue for Netflix, but it is one the company’s management team openly addressed on its Tuesday earnings call. Netflix is still one of the most expensive video streaming options in India. The Netflix Indian subscriber based has estimated by industry sources at 1 million, though the company has sa
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Netflix not concerned about lower prices, except in one huge market

If there’s a market where Netflix is concerned about plan pricing as Disney begins its big push into the video streaming market, it’s not the U.S. It’s India.

Netflix has raised its prices on plans in the U.S. and recently announced intentions to do the same in Brazil, Mexico and some countries in Europe, but it is struggling to lower its price tier in India as it looks to add more subscribers in a country that has more than 460 million internet users.

The struggle to get the Indian market right is not a new issue for Netflix, but it is one the company’s management team openly addressed on its Tuesday earnings call.

“We’re quite certain that we should do something to find a price tier that’s lower than the existing lowest price tier to broaden that accessibility,” said Netflix’s Chief Product Officer Greg Peters on the company’s Q1 earnings call. “We think that they’ll be important to adding members in India.”

Netflix is still one of the most expensive video streaming options in India. According to a recent Reuters report, the three Netflix monthly plans in India range from 500 rupees ($7.20) to 800 rupees ($11.50), significantly above the price points of Amazon Prime Video’s plan ($14 a year) and roughly twice as much as Hotstar, the country’s largest video streaming service, owned by Disney.

The Netflix Indian subscriber based has estimated by industry sources at 1 million, though the company has said it is aiming for 100 million subscribers in India.

In March, Netflix began offering a mobile-only test plan at roughly $3.60, based on current exchange rates. During the earnings call, Peters acknowledged that the plan is something the company is trying out, but isn’t “positive that’s the right model.”

Now upcoming streaming services could threaten to take a larger share of the market, like Disney and Apple. Netflix officials said on the earnings call that the increasing competition in the U.S. isn’t something the company can worry about too much.

Among the comments from Netflix CEO Reed Hastings on the earnings call:

“We can’t get obsessed about any one company.”

“It’s a mix of yes it’s competition, that hurts, but on the other hand it gets internet viewing more popular with everyone.”

“There is a lot of new and strengthening competition with Disney entering the market, HBO getting additional funding. … It is what it is; we’re not going to be able to change it.”

“There’s a ton of competition out there, and Disney and Apple add a little bit more, but frankly, I doubt it will be material because, again, there’s already so many competitors for entertainment time.”

Last year Netflix Chief Content Officer Ted Sarandostold CNBC that Asia’s young and increasingly digital population presents an “incredible opportunity” to ramp up the company’s international subscribers. The company hopes to add 100 million subscribers in India alone, which has proved its desire for video streaming by turning en masse to YouTube and other similar video services, Sarandos said.

A report by global management consulting firm Boston Consulting Group predicted the over-the-top, or OTT, market in India will grow to $5 billion in 2023, although last year it was estimated to be $500 million. Kanchan Samtani, a partner and managing director at BCG, noted the country has a price sensitive market and it’s challenging to break through the clutter.

Netflix has continued to push original content in India, and Sarandos said it was “super encouraged,” with Netflix India originals like “Sacred Games,” “Delhi Crime” and “Love Per Square Foot,” which have gained a lot of viewers in the country. On Monday, the company announced it would be adding 10 more original films to its roster that will be produced by Indian companies, and plans to release 15 total by the end of 2020.

International markets have spearheaded Netflix’s growth as it begins to slow down in domestic markets. The company beat estimates by adding 7.86 million international paid subscriber additions compared to the 1.74 million domestic additions. It has focused on localizing its content and moving away from dubbing.

The company has continued to spend on original content and has investors concerned over its free cash flow. The company reported a negative $380 million net cash flow, $93 million more than the same period last year, and the company expects its 2019 free cash flow deficit to be greater than the negative $3 billion previously expected.

“As we sort of have that ongoing content investment and we’re really providing stories that Indian consumers really love, it’s an opportunity for us to look at how we broaden the accessibility of the service then to more and more Indian consumers,” Peters said.

Shares of Netflix fell about 1% after reporting its first-quarter earnings after the bell Tuesday and teetered between positive and negative territory Wednesday morning. The company’s Q1 revenue, earnings and subscriber numbers beat Wall Street expectations.


Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: noah higgins-dunn
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Zoom prices IPO at $36 per share, valuing videoconferencing company at $9.2 billion: Source

Videoconferencing company Zoom priced its IPO at $36 a share, above of its already increased range and valuing the business at $9.2 billion. CNBC reported earlier on Wednesday that the company would price at the top end of the increased range — $33 to $35 — and possibly above it. Sales jumped 118 percent last year to $330.5 million, and the company reported net income of $7.58 million. At $36 a share, the company has an enterprise value to sales ratio of 27.5, which among cloud software companie


Videoconferencing company Zoom priced its IPO at $36 a share, above of its already increased range and valuing the business at $9.2 billion. CNBC reported earlier on Wednesday that the company would price at the top end of the increased range — $33 to $35 — and possibly above it. Sales jumped 118 percent last year to $330.5 million, and the company reported net income of $7.58 million. At $36 a share, the company has an enterprise value to sales ratio of 27.5, which among cloud software companie
Zoom prices IPO at $36 per share, valuing videoconferencing company at $9.2 billion: Source Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: leslie picker, ari levy, courtesy of zoom video communications
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Zoom prices IPO at $36 per share, valuing videoconferencing company at $9.2 billion: Source

Videoconferencing company Zoom priced its IPO at $36 a share, above of its already increased range and valuing the business at $9.2 billion.

Zoom, which is slated to start trading on Thursday on the Nasdaq, had originally given a pricing range of $28 to $32, but investor demand was so high for the profitable, fast-growing company, that the offering ended up well above that mark. CNBC reported earlier on Wednesday that the company would price at the top end of the increased range — $33 to $35 — and possibly above it.

Founded in 2011 by former Webex head engineer Eric Yuan, Zoom has surged in popularity in a crowded market by providing software that works easily across devices and by groups ranging from small teams to large enterprises. Sales jumped 118 percent last year to $330.5 million, and the company reported net income of $7.58 million.

Investors are paying up for growth. At $36 a share, the company has an enterprise value to sales ratio of 27.5, which among cloud software companies, trails only Zscaler’s ratio of 30.7, according to FactSet.

Zoom will be one of the first big tech IPOs of the year and is scheduled to start trading around the same time as social media company Pinterest. Ride-hailing company Lyft was the first 2019 tech IPO to hit the market last month, but the stock has failed to hold up as larger rival Uber prepares to sell shares in the coming weeks. While Lyft is 17 percent below its IPO price, PagerDuty, the only other notable software share sale of the year, is up 67 percent from its offer price last week.

In addition to Uber, investors are also gearing up for the debut of Slack, which is expected to take the unconventional approach of a direct listing instead of an IPO.


Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: leslie picker, ari levy, courtesy of zoom video communications
Keywords: news, cnbc, companies, price, 92, software, uber, range, valuing, videoconferencing, ipo, company, source, billion, trading, share, zoom, tech, prices


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Pinterest prices IPO at $19, valuing social media company at $10 billion

Pinterest raised $1.43 billion in its IPO after pricing the offering at $19 a share on Wednesday, valuing the company at $10 billion. Pinterest, which is expected to start trading on Thursday on the New York Stock Exchange, had originally given a pricing range of $15 to $17. But investors appear to be showing an appetite for the social media company despite the challenges Lyft has faced since becoming the first consumer tech IPO of the year last month. Still, Pinterest’s IPO is below the $12 bil


Pinterest raised $1.43 billion in its IPO after pricing the offering at $19 a share on Wednesday, valuing the company at $10 billion. Pinterest, which is expected to start trading on Thursday on the New York Stock Exchange, had originally given a pricing range of $15 to $17. But investors appear to be showing an appetite for the social media company despite the challenges Lyft has faced since becoming the first consumer tech IPO of the year last month. Still, Pinterest’s IPO is below the $12 bil
Pinterest prices IPO at $19, valuing social media company at $10 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: salvador rodriguez, justin sullivan, getty images news, getty images
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Pinterest prices IPO at $19, valuing social media company at $10 billion

Pinterest raised $1.43 billion in its IPO after pricing the offering at $19 a share on Wednesday, valuing the company at $10 billion.

Pinterest, which is expected to start trading on Thursday on the New York Stock Exchange, had originally given a pricing range of $15 to $17. But investors appear to be showing an appetite for the social media company despite the challenges Lyft has faced since becoming the first consumer tech IPO of the year last month.

CNBC reported earlier on Wednesday that the company would price above the expected range. Pinterest’s revenue jumped 60% last year to $756 million, and the company moved significantly closer to profitability with a net loss of $63 million. Still, Pinterest’s IPO is below the $12 billion valuation it attained in a 2017 financing round.

Pinterest is among the first big tech IPOs of the year and is scheduled to start trading around the same time as videoconferencing company Zoom. Ride-hailing company Lyft was the first big offering to hit the market in March, but the stock has dropped 19 percent from its IPO price.

Founded in 2010 by Ben Silbermann, a former Google employee, and Evan Sharp, who was previously a designer at Facebook, Pinterest has grown to 265 million monthly users. The company burst into the mainstream in 2012 with rapid growth, but expansion has since cooled due in part to a work culture that many employees describe as slow when it comes to making decisions.

Silbermann’s stake is worth close to $1 billion at the offer price. Bessemer Ventures owns shares valued at $1.13 billion, while FirstMark’s holdings are worth $844 million and Andreessen Horowitz’s stake is worth $827 million.

Goldman Sachs and J.P. Morgan Chase are leading the offering.

Watch: Pinterest’s path forward


Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: salvador rodriguez, justin sullivan, getty images news, getty images
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Zoom prices IPO at $36 per share, valuing videoconferencing company at $9.2 billion: Source

Videoconferencing company Zoom priced its IPO at $36 a share, above of its already increased range and valuing the business at $9.2 billion. CNBC reported earlier on Wednesday that the company would price at the top end of the increased range — $33 to $35 — and possibly above it. Sales jumped 118 percent last year to $330.5 million, and the company reported net income of $7.58 million. At $36 a share, the company has an enterprise value to sales ratio of 27.5, which among cloud software companie


Videoconferencing company Zoom priced its IPO at $36 a share, above of its already increased range and valuing the business at $9.2 billion. CNBC reported earlier on Wednesday that the company would price at the top end of the increased range — $33 to $35 — and possibly above it. Sales jumped 118 percent last year to $330.5 million, and the company reported net income of $7.58 million. At $36 a share, the company has an enterprise value to sales ratio of 27.5, which among cloud software companie
Zoom prices IPO at $36 per share, valuing videoconferencing company at $9.2 billion: Source Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: leslie picker, ari levy, courtesy of zoom video communications
Keywords: news, cnbc, companies, price, 92, software, uber, range, valuing, videoconferencing, ipo, company, source, billion, trading, share, zoom, tech, prices


Zoom prices IPO at $36 per share, valuing videoconferencing company at $9.2 billion: Source

Videoconferencing company Zoom priced its IPO at $36 a share, above of its already increased range and valuing the business at $9.2 billion.

Zoom, which is slated to start trading on Thursday on the Nasdaq, had originally given a pricing range of $28 to $32, but investor demand was so high for the profitable, fast-growing company, that the offering ended up well above that mark. CNBC reported earlier on Wednesday that the company would price at the top end of the increased range — $33 to $35 — and possibly above it.

Founded in 2011 by former Webex head engineer Eric Yuan, Zoom has surged in popularity in a crowded market by providing software that works easily across devices and by groups ranging from small teams to large enterprises. Sales jumped 118 percent last year to $330.5 million, and the company reported net income of $7.58 million.

Investors are paying up for growth. At $36 a share, the company has an enterprise value to sales ratio of 27.5, which among cloud software companies, trails only Zscaler’s ratio of 30.7, according to FactSet.

Zoom will be one of the first big tech IPOs of the year and is scheduled to start trading around the same time as social media company Pinterest. Ride-hailing company Lyft was the first 2019 tech IPO to hit the market last month, but the stock has failed to hold up as larger rival Uber prepares to sell shares in the coming weeks. While Lyft is 17 percent below its IPO price, PagerDuty, the only other notable software share sale of the year, is up 67 percent from its offer price last week.

In addition to Uber, investors are also gearing up for the debut of Slack, which is expected to take the unconventional approach of a direct listing instead of an IPO.


Company: cnbc, Activity: cnbc, Date: 2019-04-17  Authors: leslie picker, ari levy, courtesy of zoom video communications
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JP Morgan says gains in Asian stocks are ‘already behind us’

Stock markets in Asia have already given investors most of the returns they can get this year — and shares prices in the region may struggle to grow much more for the rest of 2019, J.P. Morgan said on Tuesday. Asian stocks have had a strong start to the year after ending 2018 in negative territory. The MSCI Asia ex-Japan index — a widely followed benchmark for stocks in the region — has grown by around 13.68 percent so far this year. “We’ve been a bit more on the cautious side since … the seco


Stock markets in Asia have already given investors most of the returns they can get this year — and shares prices in the region may struggle to grow much more for the rest of 2019, J.P. Morgan said on Tuesday. Asian stocks have had a strong start to the year after ending 2018 in negative territory. The MSCI Asia ex-Japan index — a widely followed benchmark for stocks in the region — has grown by around 13.68 percent so far this year. “We’ve been a bit more on the cautious side since … the seco
JP Morgan says gains in Asian stocks are ‘already behind us’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: yen nee lee
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JP Morgan says gains in Asian stocks are 'already behind us'

Stock markets in Asia have already given investors most of the returns they can get this year — and shares prices in the region may struggle to grow much more for the rest of 2019, J.P. Morgan said on Tuesday.

Asian stocks have had a strong start to the year after ending 2018 in negative territory. The MSCI Asia ex-Japan index — a widely followed benchmark for stocks in the region — has grown by around 13.68 percent so far this year. The index fell by 16.24 percent last year.

“We’ve been a bit more on the cautious side since … the second week of March,” Mixo Das, Asia equity strategist at J.P. Morgan, told CNBC’s “Squawk Box.”

“I think most of the gains for this year in Chinese as well as Asian equity markets are already behind us. From here, it’s going to be more of a difficult slog. We still see gains but it’s going to be a much more volatile process,” he added.

Asked how Asian share prices will likely perform between now till the end of the year, Das responded that they could grow by a low single-digit, or remain largely flat.

He explained that valuations have become stretched compared to projections on where earnings are headed in the coming months. In addition, he said sentiment among investors have become “overextended” and “overheated.”


Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: yen nee lee
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Health-care stocks plunge as lawmakers threaten action on drug prices

Health-care stocks were poised to end the week in the red Friday after lawmakers on Capitol Hill threatened to write new laws tightening control over the nation’s largest pharmacy benefit mangers to curb skyrocketing drug costs. The XLV, an ETF that tracks the health-care industry’s biggest companies, was down 1.48% for the week as of Friday morning. These so-called backdoor deals are suspected by lawmakers of increasing drug costs for patients. It is “very likely” lawmakers force drug companies


Health-care stocks were poised to end the week in the red Friday after lawmakers on Capitol Hill threatened to write new laws tightening control over the nation’s largest pharmacy benefit mangers to curb skyrocketing drug costs. The XLV, an ETF that tracks the health-care industry’s biggest companies, was down 1.48% for the week as of Friday morning. These so-called backdoor deals are suspected by lawmakers of increasing drug costs for patients. It is “very likely” lawmakers force drug companies
Health-care stocks plunge as lawmakers threaten action on drug prices Cached Page below :
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Health-care stocks plunge as lawmakers threaten action on drug prices

Health-care stocks were poised to end the week in the red Friday after lawmakers on Capitol Hill threatened to write new laws tightening control over the nation’s largest pharmacy benefit mangers to curb skyrocketing drug costs.

The Trump administration’s legal challenge to former President Barack Obama’s signature health insurance law, the Affordable Care Act, and Sen. Bernie Sanders’ new “Medicare for All” bill also weighed on the industry’s shares.

The XLV, an ETF that tracks the health-care industry’s biggest companies, was down 1.48% for the week as of Friday morning. The biggest declines were from insurers Anthem, Humana and UnitedHealth Group, which were all down more than 5% for the week through Thursday’s close.

Executives from CVS Health, Cigna, Prime Therapeutics, Humana and UnitedHealth’s OptumRx testified about rising prescription drug costs before the Senate Finance Committee on Tuesday. The PBMs left the congressional hearing mostly unscathed but Chairman Sen. Chuck Grassley, R-Iowa, hinted that the committee is ready to write new laws to bring down drug prices.

Ana Gupte, senior health-care services analyst at Leerink Partners, said the health-care sell-off is mostly driven by the proposed legislative changes to the PBMs’ business model, which are paid so-called rebates by Big Pharma for getting their drugs covered by private and public insurance plans, like Medicare. These so-called backdoor deals are suspected by lawmakers of increasing drug costs for patients.

It is “very likely” lawmakers force drug companies to give those rebates to consumers instead, starting as early as next year, Gupte said.

Separately, a federal appeals court in New Orleans said Wednesday that it will hear arguments in July on a lawsuit backed by President Donald Trump to overturn Obamacare. Dismantling the health-care law would lead to 32 million more uninsured people in the U.S. by 2026, according to an estimate from the Congressional Budget Office.

Separately, Sanders unveiled a universal health-care plan on Wednesday, which would eliminate most private health insurance by creating a government-run system to provide health insurance for all Americans.

For more on investing in health-care innovation, click here to join CNBC at our Healthy Returns Summit in New York City on May 21.

“Newsflow on the Medicare for All proposal from Senator Bernie Sanders and the scheduling of the hearing on the Texas Court decision to overthrow the ACA at the Fifth Circuit Court of Appeals in July also contributed to the sell off in health-care stocks,” Gupte said.

Ross Muken, an analyst at Evercore ISI, told clients in a note that watching the industry’s shares fall has “not been fun,” but added he expects first-quarter earnings to be positive as “fundamentals generally remain positive and utilization still appears under control.”


Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: berkeley lovelace jr, tetra images, getty images
Keywords: news, cnbc, companies, healthcare, week, insurance, sanders, action, medicare, stocks, health, plunge, industrys, gupte, threaten, lawmakers, drug, prices


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China’s consumer inflation driven to 5-month high as pork prices rise

China’s March consumer inflation rose to a five-month high due to rising food prices, data from the country’s National Bureau of Statistics released Thursday showed. Consumer price index (CPI) in March rose 2.3 percent from a year ago — the quickest pace since October 2018. It was lower than the 2.4 percent rise forecast by economists Reuters polled, but higher than February’s 1.5 percent increase. Food CPI was up 4.1 percent on year in March, up sharply from a 0.7 on-year rise in February due t


China’s March consumer inflation rose to a five-month high due to rising food prices, data from the country’s National Bureau of Statistics released Thursday showed. Consumer price index (CPI) in March rose 2.3 percent from a year ago — the quickest pace since October 2018. It was lower than the 2.4 percent rise forecast by economists Reuters polled, but higher than February’s 1.5 percent increase. Food CPI was up 4.1 percent on year in March, up sharply from a 0.7 on-year rise in February due t
China’s consumer inflation driven to 5-month high as pork prices rise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: huileng tan, chinafotopress, getty images
Keywords: news, cnbc, companies, rise, high, cpi, ppi, china, price, rose, chinas, driven, trade, prices, 5month, pork, consumer, inflation


China's consumer inflation driven to 5-month high as pork prices rise

China’s March consumer inflation rose to a five-month high due to rising food prices, data from the country’s National Bureau of Statistics released Thursday showed.

Consumer price index (CPI) in March rose 2.3 percent from a year ago — the quickest pace since October 2018. It was lower than the 2.4 percent rise forecast by economists Reuters polled, but higher than February’s 1.5 percent increase.

Food CPI was up 4.1 percent on year in March, up sharply from a 0.7 on-year rise in February due to a seasonal rise in vegetable prices and an on-year rise in pork prices, said the statistics bureau. Farmers in China have been culling their hogs in a bid to stem the spread of African swine fever, driving up pork prices.

Non-food CPI was 1.8 percent, little changed from February’s 1.7 percent rise on-year.

Producer price inflation (PPI) picked up for the first time in nine months, easing deflation fears amid China’s bilateral trade war with the U.S.

China’s PPI — a gauge of industrial profitability — rose 0.4 percent from a year ago in March. It came in line with expectations of analysts polled by Reuters. February PPI was up 0.1 percent on-year.

“I don’t think inflation is the focus right now of the central bank in China. They’ve got huge capacity; in fact, they’ve got overcapacity in most sectors,” said Andrew Collier, managing director of Hong Kong-based Orient Capital Research, citing the global economic climate and domestic liquidity concerns as Beijing’s key issues.

Even though food inflation was higher, price increases were still mostly in control, Collier told CNBC’s “Street Signs on Thursday.

However, Nomura said the People’s Bank of China may ease monetary policy to reach the government’s 3.0 percent inflation target in 2019.

“The acceleration of CPI inflation comes mainly from pork prices rather than a general rise in prices and, unless inflationary pressures spread to other areas, the central bank will more likely look through the cyclical acceleration in pork prices and continue to support the economic growth via its monetary policy easing bias through the rest of this year,” the Nomura economists wrote in a note on Thursday.

The world’s second-largest economy is being closely watched for signs of damage stemming from the trade war between Washington and Beijing.

Treasury Secretary Steven Mnuchin said that the U.S. and China are making progress on a trade deal — including a mechanism for enforcing the terms of any agreement.

Mnuchin made those comments to Sara Eisen on CNBC’s The Exchange on Wednesday, though he did not elaborate on what an enforcement mechanism would look like.

— Reuters contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: huileng tan, chinafotopress, getty images
Keywords: news, cnbc, companies, rise, high, cpi, ppi, china, price, rose, chinas, driven, trade, prices, 5month, pork, consumer, inflation


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A ‘forecasting nightmare’: Volatile oil prices are virtually impossible to predict, analysts say

A flurry of intensifying risks in the energy market has made it “virtually impossible” to confidently forecast the price of oil, industry experts told CNBC on Thursday. But, alongside mounting concerns about the health of the global economy, surging U.S. crude inventories appears to have capped further gains. “There are economic and geopolitical developments to deal with and these can change almost on a daily basis,” Varga said. He described oil market conditions at present as a “forecasting nig


A flurry of intensifying risks in the energy market has made it “virtually impossible” to confidently forecast the price of oil, industry experts told CNBC on Thursday. But, alongside mounting concerns about the health of the global economy, surging U.S. crude inventories appears to have capped further gains. “There are economic and geopolitical developments to deal with and these can change almost on a daily basis,” Varga said. He described oil market conditions at present as a “forecasting nig
A ‘forecasting nightmare’: Volatile oil prices are virtually impossible to predict, analysts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: sam meredith, daniel acker, bloomberg, getty images
Keywords: news, cnbc, companies, wti, oil, forecasting, say, impossible, predict, virtually, market, start, varga, developments, nightmare, volatile, analysts, prices, west, crude


A 'forecasting nightmare': Volatile oil prices are virtually impossible to predict, analysts say

A flurry of intensifying risks in the energy market has made it “virtually impossible” to confidently forecast the price of oil, industry experts told CNBC on Thursday.

Oil prices have soared since the start of the year, due to a number of risk factors such as OPEC-led supply cuts, U.S. sanctions on oil exporters Iran and Venezuela and escalating fighting in Libya.

But, alongside mounting concerns about the health of the global economy, surging U.S. crude inventories appears to have capped further gains.

“There are so many uncertainties surrounding the oil market that it makes it virtually impossible to predict developments for the rest of the week let alone for months or a year ahead,” Tamas Varga, senior analyst at PVM Oil Associates, said in a research note published Thursday.

“There are economic and geopolitical developments to deal with and these can change almost on a daily basis,” Varga said. He described oil market conditions at present as a “forecasting nightmare.”

International benchmark Brent crude traded at around $71.15 Thursday afternoon, down 0.8%, while U.S. West Texas Intermediate (WTI) stood at $64.05, around 0.9% lower.

Brent and WTI crude futures have risen by approximately 30% and 40% respectively since the start of the year.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: sam meredith, daniel acker, bloomberg, getty images
Keywords: news, cnbc, companies, wti, oil, forecasting, say, impossible, predict, virtually, market, start, varga, developments, nightmare, volatile, analysts, prices, west, crude


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