Don’t expect the US and China to make any trade progress at G-20, short seller Carson Block says

Investors shouldn’t get their hopes up for the U.S. and China to make any progress on the trade front at the G-20 summit next week, short seller Carson Block said Friday. The Chinese media seems to be digging in and not softening its tone,” Block, founder of Muddy Waters Research, told CNBC’s “Squawk on the Street. ” Block lived in China for six years and gained recognition by shorting several Chinese stocks, including Sino-Forest. China and the U.S. have been engaged in a trade war for more tha


Investors shouldn’t get their hopes up for the U.S. and China to make any progress on the trade front at the G-20 summit next week, short seller Carson Block said Friday. The Chinese media seems to be digging in and not softening its tone,” Block, founder of Muddy Waters Research, told CNBC’s “Squawk on the Street. ” Block lived in China for six years and gained recognition by shorting several Chinese stocks, including Sino-Forest. China and the U.S. have been engaged in a trade war for more tha
Don’t expect the US and China to make any trade progress at G-20, short seller Carson Block says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-21  Authors: fred imbert
Keywords: news, cnbc, companies, huawei, progress, think, block, trade, china, summit, chinese, countries, g20, short, expect, carson, commercial, seller, dont


Don't expect the US and China to make any trade progress at G-20, short seller Carson Block says

Investors shouldn’t get their hopes up for the U.S. and China to make any progress on the trade front at the G-20 summit next week, short seller Carson Block said Friday.

“I don’t think we’re going to have any rapprochement here. The Chinese media seems to be digging in and not softening its tone,” Block, founder of Muddy Waters Research, told CNBC’s “Squawk on the Street. ” “They’re preparing, I think, for a long geopolitical battle with the West.”

Block lived in China for six years and gained recognition by shorting several Chinese stocks, including Sino-Forest. More recently, he compared Chinese after-school operator Tal Education to Enron.

China and the U.S. have been engaged in a trade war for more than a year. In that time, the two countries have slapped tariffs on billions of dollars worth of each other’s goods, tightening trade conditions and dampening the U.S. economic outlook.

President Donald Trump and his Chinese counterpart, Xi Jinping, are scheduled to meet at next week’s G-20 summit in Japan. The two leaders are expected to discuss trade, with the possibility of reaching an accord.

Still, Block does not expect a deal to be reached. He also said China has figured out how to use the open markets and economies of the West against Western countries through its influence on Chinese companies.

“At the end of the day, there can be no business that is based in mainland China that can be assured of acting independently of the government and just for commercial reasons,” Block said. “Huawei and ZTE built themselves because they were strategic priorities of the Chinese government. When Ericsson and Nokia were laying off employees, Huawei was hiring them in Sweden and Norway not because it was a good commercial decision, but because of the long-term vision” of the Chinese government.

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Company: cnbc, Activity: cnbc, Date: 2019-06-21  Authors: fred imbert
Keywords: news, cnbc, companies, huawei, progress, think, block, trade, china, summit, chinese, countries, g20, short, expect, carson, commercial, seller, dont


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What to watch in the market in the week ahead: Stocks on track for best first half in 22 years

The S&P 500 was on track, as of Friday, to score a more than 17.6% gain for the first half, which ends Friday. The big event in the coming week has been as anticipated for weeks, and it could sway sentiment for weeks to come. At the end of the week, the G-20 meets in Osaka Japan for meetings Friday and Saturday. “Everybody knows the Trump, Xi meeting could go either way,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “I think there’s been this broad increased awareness


The S&P 500 was on track, as of Friday, to score a more than 17.6% gain for the first half, which ends Friday. The big event in the coming week has been as anticipated for weeks, and it could sway sentiment for weeks to come. At the end of the week, the G-20 meets in Osaka Japan for meetings Friday and Saturday. “Everybody knows the Trump, Xi meeting could go either way,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “I think there’s been this broad increased awareness
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Company: cnbc, Activity: cnbc, Date: 2019-06-21  Authors: patti domm
Keywords: news, cnbc, companies, xi, theres, ahead, 22, trump, think, best, fed, meeting, tariffs, trade, watch, g20, week, track, market, half, stocks


What to watch in the market in the week ahead: Stocks on track for best first half in 22 years

The fate of U.S.-China trade talks could play out in the week ahead, and that could set the tone for markets and the economy in the second half of the year. Stocks set new highs in the past week, after the Federal Reserve signaled it was ready to cut interest rates if necessary, and Fed Chair Jerome Powell said trade and the global economy are two factors the Fed is watching. The S&P 500 was on track, as of Friday, to score a more than 17.6% gain for the first half, which ends Friday. If it stays at that level that would be the best first half performance since 1997, when the S&P was up 19.4% in the first six months. The big event in the coming week has been as anticipated for weeks, and it could sway sentiment for weeks to come. At the end of the week, the G-20 meets in Osaka Japan for meetings Friday and Saturday.

‘Could go either way’

President Donald Trump and Chinese President Xi Jinping are expected to have their own dinner meeting at the G-20 next weekend, following discussions between their trade representatives. That meeting could decide how trade negotiations go forward, and whether the U.S. proceeds with another round of tariffs, this time on $300 billion in goods. “Everybody knows the Trump, Xi meeting could go either way,” said Marc Chandler, chief market strategist at Bannockburn Global Forex. “I think everyone expects a new tariff freeze. That the $300 billion won’t go into effect. The most you can hope for out of G-20 meeting is the tariffs are where they are right now, and there’s no more escalation.That also means China will not release the list of companies they won’t do business with.” Chandler said he will be looking for signaling from Trump and Xi on whether they are working on a deal that would be just on the trade topics, or bigger issues like North Korea and differences on the South China Sea. “I do think the G-20 is quite important in that there’s not question in recent months, the trade war started to really move into measures of confidence and measures of manufacturing activity,” said Ethan Harris, head of global economics at Bank of America Merrill Lynch. Harris said he expects a positive message with an agreement of no further escalation, but probably not signs of significant progress. “I think the vibes coming out of it will be modestly positive,” he said. “Whether there’s an escalation to the next round of China tariffs is going to set the theme for the rest of the year. Even if tariffs on China are reversed, or partly reversed, at some point, every time there’s an escalation or temporary escalation, it’s another kind of blow to confidence,” he said. Harris said there’s the same risk as after the Trump, Xi meeting at the last G-20, where it was a positive tone but there was little progress afterwards and the markets then reacted negatively. “I think there’s been this broad increased awareness from every economist that the trade war is starting to have noticeable impact. Further escalation with China would be quite a big signal. If the Trump administration puts tariffs on all the Chinese products it roughly doubles the size of the trade war and it sends a very strong message that there are very few constraints on where [Trump] goes next,” he said.

Powell and data

Besides the meeting between Trump and Xi, the market focus will be on anything that could provide clues on what the Fed or even the European Central Bank will do, after ECB President Mario Draghi last week basically promised a new era of easing. Consumer price inflation data is expected for the euro zone, and on Friday, the U.S. personal consumption expenditure data is released, including the PCE deflator, a major inflation indicator for the Fed. There are also a few Fed speakers, including Powell who speaks at the Council on Foreign Relations Tuesday. “It’s probably going to be a big picture kind of talk about the broader challenges of the Fed,” said Ethan Harris, head of global economics at Bank of America Merrill Lynch. “They’re certainly going to ask questions about political influence at the Fed, and he’s going to dodge those. I think what I’m waiting for him to comment on is what it is they’re looking for to determine whether they’re going to cut in July or not.” Harris said Powell is not likely to say anything he did not reveal at his press briefing in the past week, and the big focus will be on the lead up to the weekend G-20. Falling interest rates and rising oil prices were two big factors in the market int he past week. The 10-year Treasury yield dipped briefly below 2%, a near 3-year low, as the Fed signaled its willingness to cut interest rates. “Should we get some sort of trade agreement that would be a nice pop to the [stock] market, but that could take the rate cut off the table,” said Sam Stovall, chief investment strategist at CFRA. Stovall said the stock market will also be watching oil after its rapid run higher, and the events in the Middle East surrounding Iran. West Texas Intermediate futures were up more than 9% in the past week, to $57.43. “The old adage is every $10 increase in the price of oil takes off 20 to 25 basis points off of real GDP growth,” he said. Stovall said stocks have had a solid run so far this year, but they may face some rocky times between now and the end of the summer. “For the rest of this ‘sell in May’ period we could be facing some challenges, headwinds. I think we’ will still end higher on the year. I think the seasonally optimistic September to November period will kick in but there will be a lot of challenges…will the Fed be cutting rates? what are the growth prospects?” he said.

What to watch


Company: cnbc, Activity: cnbc, Date: 2019-06-21  Authors: patti domm
Keywords: news, cnbc, companies, xi, theres, ahead, 22, trump, think, best, fed, meeting, tariffs, trade, watch, g20, week, track, market, half, stocks


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Hedge fund manager Kyle Bass says the US has more leverage over China than ever before

Hedge fund manager Kyle Bass believes the United States now has more leverage over China in trade negotiations than ever before and encouraged President Donald Trump to follow his hard-line tactics to force concessions from Beijing. Bass — a known China bear — has previously admonished American corporations for pushing Trump to strike a deal with China too quickly and out of their own self-interest. And it is the corporate American chieftains that have their biggest businesses, let’s say most gr


Hedge fund manager Kyle Bass believes the United States now has more leverage over China in trade negotiations than ever before and encouraged President Donald Trump to follow his hard-line tactics to force concessions from Beijing. Bass — a known China bear — has previously admonished American corporations for pushing Trump to strike a deal with China too quickly and out of their own self-interest. And it is the corporate American chieftains that have their biggest businesses, let’s say most gr
Hedge fund manager Kyle Bass says the US has more leverage over China than ever before Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-21  Authors: thomas franck
Keywords: news, cnbc, companies, better, manager, trump, think, leverage, bass, fund, kyle, china, deal, yesterday, world, trade, hedge, going


Hedge fund manager Kyle Bass says the US has more leverage over China than ever before

Hedge fund manager Kyle Bass believes the United States now has more leverage over China in trade negotiations than ever before and encouraged President Donald Trump to follow his hard-line tactics to force concessions from Beijing.

In an interview with CNBC’s David Faber, Bass said the strength of U.S. business affords Trump the ability to press China’s Xi Jinping for a better deal during their planned meeting at the G-20 summit in Japan next week.

“We have the most leverage that we’ve ever had right now, and I think that our financial system is more solid than it’s been in the last 10 years. And theirs is as weak as it’s ever been,” Bass said Friday morning. “President Trump should hold the line here and get a deal done. If he is going to get a deal done, he should force something that’s both measurable and enforceable.”

Bass, founder and chief investment officer of Hayman Capital Management, is known for profiting and betting against subprime mortgages during the financial crisis in 2008. Bass — a known China bear — has previously admonished American corporations for pushing Trump to strike a deal with China too quickly and out of their own self-interest.

“If you look behind the scenes, it is corporate America pushing Trump to do a deal. And it is the corporate American chieftains that have their biggest businesses, let’s say most growth, coming out of China. And China plays that card. They play it better than anybody else,” Bass told CNBC in April.

The world two largest economies have slapped tariffs on each others’ imports over the past year in an ongoing trade dispute, with the U.S. accusing China of failing to enforce intellectual property protections. Though Wall Street thought the two sides were nearing a deal earlier this year, Trump’s May tweet that the U.S. would introduce more duties dashed those hopes.

“I think the chasm is too far across for us to come to a deal. But what does that mean?” Bass added Friday.

“As Trump tweeted yesterday, the stock market opened at a new high and close at a new high yesterday. I think the fact that talks are ongoing, the U.S. economy is doing better than most of the others in the world,” he said. “I actually think that’s the path that we’re going to see going into the election year.”


Company: cnbc, Activity: cnbc, Date: 2019-06-21  Authors: thomas franck
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2 simple ways Warren Buffett decides what to invest in

When it comes to investing, Berkshire Hathaway CEO Warren Buffett doesn’t have a complicated method for choosing what to buy. Here are two ways the Oracle of Omaha decides a business is worth investing in. “Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value,” Buffett wrote in his 1996 letter to shareholders. “You have to learn how to value businesses and know the ones that are within your circle of competence


When it comes to investing, Berkshire Hathaway CEO Warren Buffett doesn’t have a complicated method for choosing what to buy. Here are two ways the Oracle of Omaha decides a business is worth investing in. “Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value,” Buffett wrote in his 1996 letter to shareholders. “You have to learn how to value businesses and know the ones that are within your circle of competence
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Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: emmie martin
Keywords: news, cnbc, companies, ways, ones, stock, businesses, investing, think, competence, invest, buffett, value, simple, warren, circle, doesnt, decides


2 simple ways Warren Buffett decides what to invest in

It seems like every week there’s a new flashy Silicon Valley start-up announcing its IPO, and it’s tempting to want to get in on the action. But is buying stock in a newly public company the best idea? When it comes to investing, Berkshire Hathaway CEO Warren Buffett doesn’t have a complicated method for choosing what to buy. Instead, he keeps things simple by following a few steadfast guidelines. After all, “the fundamentals won’t change,” he told CNBC’s Becky Quick during an interview on “Squawk Box” in February. “You’re not going to discover anything new about investments in the next 50 or 100 years.” Here are two ways the Oracle of Omaha decides a business is worth investing in.

1. The company has long-term value

Buffett looks for businesses that will continue to have a competitive advantage decades down the line, not just in the moment. “Nobody buys a farm based on whether they think it’s going to rain next year,” he said on “Squawk Box” in 2018. “They buy it because they think it’s a good investment over 10 or 20 years.” For example, he purchased See’s Candies with longtime business partner Charlie Munger in 1972 and spent more than $1 billion on Coca-Cola stock in 1988 — both of which turned out to be good bets he still owns today.

“Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value,” Buffett wrote in his 1996 letter to shareholders. “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”

2. He understands how the business works

Buffett doesn’t put money into anything he doesn’t understand. “You have to learn how to value businesses and know the ones that are within your circle of competence and the ones that are outside,” Buffett told Quick in February. That’s because it’s crucial for investors to be able to confidently assess the businesses they hold. “Intelligent investing is not complex, though that is far from saying that it is easy,” Buffett wrote in his 1996 annual shareholders’ letter. “What an investor needs is the ability to correctly evaluate selected businesses. Note that word ‘selected’: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. “The size of that circle is not very important; knowing its boundaries, however, is vital.”

You have to learn how to value businesses and know the ones that are within your circle of competence and the ones that are outside. Warren Buffett CEO of Berkshire Hathaway


Company: cnbc, Activity: cnbc, Date: 2019-06-20  Authors: emmie martin
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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
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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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5 ways to fight wealth inequality, according to economists

The rise of income inequality and the struggles of so many families to get ahead have shaken American politics across the spectrum. Ideological conservatives warn of a socialist uprising that would ruin American capitalism. With bold and targeted steps, they argue, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism. “I don’t think education by itself is a solution to income inequality,” says MIT’s David Autor. Expanding i


The rise of income inequality and the struggles of so many families to get ahead have shaken American politics across the spectrum. Ideological conservatives warn of a socialist uprising that would ruin American capitalism. With bold and targeted steps, they argue, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism. “I don’t think education by itself is a solution to income inequality,” says MIT’s David Autor. Expanding i
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Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: john harwood
Keywords: news, cnbc, companies, economists, workers, owners, kearney, inequality, education, american, capitalism, according, fight, thats, ways, think, wealth, income, work


5 ways to fight wealth inequality, according to economists

The rise of income inequality and the struggles of so many families to get ahead have shaken American politics across the spectrum. President Donald Trump invokes the plight of “the forgotten people.” Liberals call for massive new government programs. Wall Street titan Jamie Dimon proposes “a Marshall Plan for America.” Ideological conservatives warn of a socialist uprising that would ruin American capitalism. But economists who study the issue say it need not come to that. With bold and targeted steps, they argue, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism. Here are five of them:

Bolstering human capital

“We could tax more from all the folks at the top to spend money making investments in the people who are being left behind,” says University of Maryland economist Melissa Kearney. That includes access to affordable health care, job training, apprenticeships and vocational education. Most important is improved basic education, beginning with prekindergarten programs for 3- and 4-year-olds. “I don’t think education by itself is a solution to income inequality,” says MIT’s David Autor. “It’s the best tool in our toolkit.”

Raising wages and returns

Government can make employment more profitable for low-income workers. A higher minimum wage is just one way, and a limited one. “There’s only so much you could do in terms of making workers more expensive without actually harming the people you’re trying to help,” Kearney said. Alternatives include increasing the earned income tax credit and subsidizing child-care services so more low-income parents can work. Easing occupational licensing requirements would smooth the path to more people taking up higher-paying lines of work, and loosening prohibitions against work would boost incomes for millions of Americans now reliant on disability benefits.

Altering corporate governance

In recent decades, the rise of “shareholder capitalism” in the American system has reduced the influence of workers in economic decision-making and enhanced the influence of business owners. Government and corporations can alter the social contract. “The idea that corporations should just maximize profits without any regard to any other objective is fairly recent,” Autor says. “It’s possible to imagine adjustments to the structure of corporate governance that would think a little harder about additional stakeholders and potential beneficiaries aside from just owners.” For example, Democratic presidential candidate Elizabeth Warren has proposed that workers at a corporation be allowed to elect 40% of the board of directors. Similar arrangements in Germany have resulted in much more limited use of one manifestation of shareholder capitalism — stock buybacks.

Expanding infrastructure

Better roads, bridges and airports can improve productivity and prosperity for business owners and workers alike. So can digital connections to sparsely populated communities the 21st century economy has left behind “Forty percent of rural Americans don’t have access to broadband internet,” Kearney says. “That’s like electricity to a previous generation, so that’s an obvious infrastructure investment that would make a place more conducive to job growth.” At the same time, the cost of a decent home keeps many potential workers from opportunities in economically thriving cities. Relaxed zoning, development subsidies and rental assistance could increase the stock of affordable housing.

Protecting intellectual property


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: john harwood
Keywords: news, cnbc, companies, economists, workers, owners, kearney, inequality, education, american, capitalism, according, fight, thats, ways, think, wealth, income, work


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Fed holds steady on interest rates—here’s what experts are watching

The rates market is pricing this in, so this is all in sync, so it’s a good statement for the market. ” So, I think they’re keeping their options open, and I think that is appropriate. Maybe after the fact they might, but I don’t think they want to do that ex ante. That’s something to focus on, and, again I think that’s the way that they’re going to justify a cut. I think that’s bond positive, I think that’s equity positive, and we’ll see how this plays out.


The rates market is pricing this in, so this is all in sync, so it’s a good statement for the market. ” So, I think they’re keeping their options open, and I think that is appropriate. Maybe after the fact they might, but I don’t think they want to do that ex ante. That’s something to focus on, and, again I think that’s the way that they’re going to justify a cut. I think that’s bond positive, I think that’s equity positive, and we’ll see how this plays out.
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Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: araceli crescencio
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Fed holds steady on interest rates—here's what experts are watching

No Fed rate cuts for now.

The Federal Reserve decided to keep interest rates steady on Wednesday but opened the door for potential rate cuts later this year if economic activity weakens. The committee said it continues to see “sustained” economic expansion but that “uncertainties about [its] outlook have increased.”

With Wall Street traders pricing in a 100% chance of at least one July rate cut, experts were largely split on the move.

Here are three of their takes on what comes next for the market:

Alicia Levine, chief strategist at BNY Mellon, said the decision to leave interest rates unchanged is a good sign for the market:

“So I’d say that July is on the table here, and I think that it’s very reasonable to think there’s two cuts this year with this change in the dot plot. It’s very clear that the Fed is really looking to ensure that the expansion continues and it’s positive for the market. This is what the market needed to see. The rates market is pricing this in, so this is all in sync, so it’s a good statement for the market. ”

J.P. Morgan Funds Chief Strategist David Kelly said this may seem like a good decision for now but there could still be danger ahead:

“I think the stock market may like this in the short run, but I think we’re in some dangerous territory here. I mean, first of all, two wrongs don’t make a right, and it’s inappropriate to have an overly easy monetary policy to enable an overly aggressive trade policy. … I think the problem is the Fed is taking the position that monetary policy should be independent, and therefore they will not tell the administration what to do if the administration would please stop telling them what to do. Now, … one side is keeping that agreement, but the danger here is, … if they cut in July, everybody’s going to expect them to cut again. Eighty-one percent of the time, when the Fed cuts, they cut again within the next six months. So, people will just build in a series of rate cuts, and as rates fall, people will expect, ‘Well, why don’t I wait a while here [and] see if I can borrow at cheaper rates?’ It doesn’t stimulate the economy. So, there’s a danger that they will actually make things worse by cutting rates in this environment.”

John Bellows, portfolio manager and research analyst at Western Asset, said Wednesday’s Fed decision prepared the groundwork for future policy:

“I actually think that it was notable they didn’t commit to [a] July [cut]. There’s nothing in here about a next meeting. There’s nothing in here about the G-20. Of course, they’re going to leave that out. So, I think they’re keeping their options open, and I think that is appropriate. They don’t want to be seen as doing anything that’s going to interact with trade policy at the ex ante. Maybe after the fact they might, but I don’t think they want to do that ex ante. The other thing I would focus on here is I do think we are seeing that movement towards concern about inflation. You know, they’ve been talking, up to now, about market expectations being low, but now they’re saying … outright they have declined. That’s a change. That’s something to focus on, and, again I think that’s the way that they’re going to justify a cut. They’re never going to say that ‘We’re cutting because trade policy got too aggressive.’ … But they will say, and I do think this is likely, they will say, ‘Inflation’s too low, we need to get it higher, and therefore we’re going to use policy.’ So, what you’re seeing today is … the careful laying of the groundwork. They don’t want to get caught up in the trade dispute. They don’t want to get caught up in this meeting or that meeting. But they are carefully laying the groundwork for easing policy … later this year. I think that’s bond positive, I think that’s equity positive, and we’ll see how this plays out. But I think that’s what they’re doing here, is they’re laying that groundwork.”

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: araceli crescencio
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The Fed is ‘carefully’ laying the groundwork for a rate cut this year, analysts say

The Federal Reserve’s language indicates the central bank could be laying the groundwork for an interest rate cut in July or later this year, analysts told CNBC on Wednesday. The central bank predicted one or two rate cuts but not until 2020. David Kelly, chief global strategist at JPMorgan Funds, agreed a rate cut is on the table for later this year. But Kelly said he’s concerned rate cuts could actually harm the economy instead of help as people hold out for lower rates. So, people will just b


The Federal Reserve’s language indicates the central bank could be laying the groundwork for an interest rate cut in July or later this year, analysts told CNBC on Wednesday. The central bank predicted one or two rate cuts but not until 2020. David Kelly, chief global strategist at JPMorgan Funds, agreed a rate cut is on the table for later this year. But Kelly said he’s concerned rate cuts could actually harm the economy instead of help as people hold out for lower rates. So, people will just b
The Fed is ‘carefully’ laying the groundwork for a rate cut this year, analysts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, policy, kelly, rate, groundwork, say, carefully, economy, cuts, cut, fed, central, bank, laying, think, analysts


The Fed is 'carefully' laying the groundwork for a rate cut this year, analysts say

The Federal Reserve’s language indicates the central bank could be laying the groundwork for an interest rate cut in July or later this year, analysts told CNBC on Wednesday.

They spoke shortly after the Federal Open Market Committee voted 9-1 to keep the benchmark rate in a target range of 2.25% to 2.5%, sending U.S. stocks higher in midafternoon trading.

The central bank predicted one or two rate cuts but not until 2020. However, the committee in its post-meeting statement scrapped the word “patient” to describe its approach to policy, possibly indicating the central bank could be ready to cut as soon as July, analysts said.

“What you’re seeing today is the kind of careful laying of the groundwork” for an easing in monetary policy, John Bellows, portfolio manager at Western Asset Management, said on “Power Lunch. ” “I think that’s bond positive, I think that’s equity positive, and we’ll see how this plays out.”

Bellows added the Fed is also being cautious about appearing to counteract trade policy out of the White House.

With signs of a slowing economy and concerns about the U.S.-China trade war, talk in the markets earlier this year about the Fed holding steady for a while has turned to calls for a cut or even multiple cuts in 2019.

David Kelly, chief global strategist at JPMorgan Funds, agreed a rate cut is on the table for later this year. But Kelly said he’s concerned rate cuts could actually harm the economy instead of help as people hold out for lower rates.

“I think we’re in some dangerous territory here,” Kelly told “Power Lunch.” “If they cut in July, everybody is going to expect them to cut again. … So, people will just build in a series of rate cuts and as rates fall people will [say], ‘Why don’t I just wait awhile here, see if I can borrow at cheaper rates.”

However, conservative economic pundit Stephen Moore, who withdrew his bid to be appointed to the Fed in May, thinks the central bank made a mistake on Wednesday by not cutting rates.

“There is no whiff of inflation anywhere in the economy. If anything, the problem is falling prices. The Fed should get ahead of the curve of that,” Moore, a visiting fellow at The Heritage Foundation think tank, said on “Closing Bell. ”

“They should have cut rates by 25 basis points and reversed the mistake they made back in December,” he added. “I view this as, kind of, an anti-growth move by the Fed.”

— CNBC’s Michelle Fox, Matthew Belvedere and Jeff Cox contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, policy, kelly, rate, groundwork, say, carefully, economy, cuts, cut, fed, central, bank, laying, think, analysts


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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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‘Bitcoin is easily going to take out its all-time highs’: Fundstrat’s Tom Lee

But that could be just the beginning for its bounce back, says bitcoin bull and Fundstrat Global Advisors’ research chief Tom Lee. “I think bitcoin is easily going to take out its all-time highs” of $20,000, and has the potential to run to $40,000 if its use cases grow, Lee said Tuesday on CNBC’s “Futures Now.” Many in the crypto space were hesitant to agree that the “crypto winter” was indeed over, Lee wrote. “I think it really destroys those arguments that say, ‘I believe in blockchain, not bi


But that could be just the beginning for its bounce back, says bitcoin bull and Fundstrat Global Advisors’ research chief Tom Lee. “I think bitcoin is easily going to take out its all-time highs” of $20,000, and has the potential to run to $40,000 if its use cases grow, Lee said Tuesday on CNBC’s “Futures Now.” Many in the crypto space were hesitant to agree that the “crypto winter” was indeed over, Lee wrote. “I think it really destroys those arguments that say, ‘I believe in blockchain, not bi
‘Bitcoin is easily going to take out its all-time highs’: Fundstrat’s Tom Lee Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-18  Authors: lizzy gurdus
Keywords: news, cnbc, companies, fundstrats, going, bitcoin, currency, think, really, facebook, highs, wrote, digital, crypto, lee, alltime, easily, facebooks, tom


'Bitcoin is easily going to take out its all-time highs': Fundstrat's Tom Lee

Bitcoin appears to be back in business.

Having crossed above the $9,000 level on Sunday ahead of Facebook announcing its own cryptocurrency, Libra, bitcoin is now up 146% this year. But that could be just the beginning for its bounce back, says bitcoin bull and Fundstrat Global Advisors’ research chief Tom Lee.

“I think bitcoin is easily going to take out its all-time highs” of $20,000, and has the potential to run to $40,000 if its use cases grow, Lee said Tuesday on CNBC’s “Futures Now.” “We’re deep into a bull market, and people are pretty silent about it.”

In his latest note, Lee wrote that he felt there was a lack of conviction about bitcoin’s recent rally, based on his attendance at the CryptoCompare Digital Asset Summit in London last week.

Many in the crypto space were hesitant to agree that the “crypto winter” was indeed over, Lee wrote. They cited worries around persistent volatility in alt-coins and initial coin offerings, fundraising issues in the digital currency market, general bearishness and residual concerns stemming from crypto’s huge drop in 2018, he wrote.

But Facebook’s latest move serves to legitimize the space in a way that could provide further runway for bitcoin, which could even become a “reserve currency in crypto” down the line, Lee said Tuesday.

“The Facebook announcement is a complete validation that mainstream is now focused on cryptocurrencies,” he said. “I think it really destroys those arguments that say, ‘I believe in blockchain, not bitcoin.'”

And, while Lee saw Facebook’s Libra project as “clearly a cryptocurrency play,” the main thrust of it revolves around the idea of decentralized finance, he said.

“I think it is more targeted at stablecoin and creating a new kind of banking system, and it’s very complementary to bitcoin,” he said. “So I think this is actually a really bullish development for bitcoin. I think it’s really bad for stablecoins and anyone who’s been trying to do decentralized finance.”

Facebook’s project has the backing of payment processors Mastercard and Visa, as well as travel giant Booking Holdings. Lee noted that decentralization in finance is “probably really good for payment processors” but will likely pose a challenge to traditionally structured banks.

“One thing to keep in mind [is] Facebook’s annual revenue per user is probably $50. That might be a little high,” Lee said. “But an average bank generates close to $1,000 per user. So, Facebook has a 20x upside to their customer model if they start doing banking services, and so I can see why banks aren’t really enthusiastic about this.”

Bitcoin was down nearly 3% toward the end of Tuesday’s trading session. The digital currency managed to retrace its 2018 highs in late May.

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Company: cnbc, Activity: cnbc, Date: 2019-06-18  Authors: lizzy gurdus
Keywords: news, cnbc, companies, fundstrats, going, bitcoin, currency, think, really, facebook, highs, wrote, digital, crypto, lee, alltime, easily, facebooks, tom


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