Dollar weakens as US-China trade truce revives demand for riskier currencies

Riskier currencies such as the Australian dollar and New Zealand dollar rallied by more than 0.5 percent each, while safe haven currencies such as the yen and the Swiss franc traded weaker in early Asian trade, signalling a clear risk-on move in the financial markets. “The trade truce is definitely risk positive for the markets…we expect dollar safe haven buying to fade and riskier currencies such as the Aussie and Kiwi dollar to scale higher,” said Rodrigo Catril, senior currency strategist a


Riskier currencies such as the Australian dollar and New Zealand dollar rallied by more than 0.5 percent each, while safe haven currencies such as the yen and the Swiss franc traded weaker in early Asian trade, signalling a clear risk-on move in the financial markets. “The trade truce is definitely risk positive for the markets…we expect dollar safe haven buying to fade and riskier currencies such as the Aussie and Kiwi dollar to scale higher,” said Rodrigo Catril, senior currency strategist a
Dollar weakens as US-China trade truce revives demand for riskier currencies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03
Keywords: news, cnbc, companies, weakens, currency, revives, marketsthe, versus, riskier, trade, uschina, dollar, currencies, traded, weaker, truce, demand, value, yen


Dollar weakens as US-China trade truce revives demand for riskier currencies

The dollar fell across the board on Monday as investor demand for riskier assets rose after China and the U.S. agreed to a cease-fire in a trade dispute that has shaken global markets.

The White House said on Saturday that President Donald Trump told China’s President Xi Jinping at the G-20 talks in Argentina that he would not boost tariffs on $200 billion of Chinese goods to 25 percent on Jan. 1 as previously announced.

China and United States will try to bridge their differences via new talks aimed at reaching a deal within 90 days.

Riskier currencies such as the Australian dollar and New Zealand dollar rallied by more than 0.5 percent each, while safe haven currencies such as the yen and the Swiss franc traded weaker in early Asian trade, signalling a clear risk-on move in the financial markets.

“The trade truce is definitely risk positive for the markets…we expect dollar safe haven buying to fade and riskier currencies such as the Aussie and Kiwi dollar to scale higher,” said Rodrigo Catril, senior currency strategist at NAB.

Catril noted that crosses such as the Aussie/yen and kiwi/yen are likely to see further upside as currency traders react to the temporary truce between the world’s two largest economies.

The dollar index, a gauge of its value versus six major peers, traded down 0.13 percent at 97.14.

The dollar lost 0.54 percent versus the offshore yuan, its steepest percentage fall since Oct. 1, to quote at 6.9134.

The safe-haven yen weakened to 113.68 on Monday, with the greenback gaining 0.2 percent, reflecting the prevailing risk-on mood. The euro gained 0.34 percent on the yen to 128.89, briefly hitting an intra-day high of 129.37, its highest level since Nov. 9.

The euro changed hands gained 0.16 percent to $1.1333 amid heavy dollar selling.

However, some analysts warned many issues had to be resolved for risk sentiment to stay positive in the medium term.

“Ultimately, it remains a high order for China to fulfil the U.S. demands on structural issues…at a time when the major issues that the U.S. has raised represent a challenge to China’s rise, a long-lasting and meaningful de-escalation remains very challenging,” said Daniel Been, head of currency research at ANZ.

Apart from trade, investor focus will also return to the U.S. monetary policy, with the Federal Reserve expected to raise interest rates by 25 basis points later in December, which would be its fourth rate hike this year.

“The developments over the weekend will give the Fed some more confidence to raise rates in 2019,” said Michael McCarthy, chief market strategist at CMC markets.

The dollar had come under pressure last week when the market took comments by Federal Reserve Chair Jerome Powell as hinting at a slower pace of rate hikes.

Powell is scheduled to testify before a congressional Joint Economic Committee later this week.

The British pound traded weaker versus the dollar at $1.2740 losing around 0.1 percent of its value. Sterling has posted losses for three consecutive weeks as traders bet that British Prime Minister Theresa May will not be able to pass her Brexit deal through parliament on Dec. 11.


Company: cnbc, Activity: cnbc, Date: 2018-12-03
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Europe rallies 2% after US and China agree to temporary trade truce; miners surge 5%

The pan-European Stoxx 600 was up more than 2 percent during early morning deals, with all sectors in positive territory. Germany’s DAX index led the gains among the major bourses, surging over 2.5 percent Monday morning. Looking at individual stocks, Netherlands-based pharmaceutical company Argenx rose toward the top of the European benchmark. Meanwhile, Dutch company Signify slipped to the bottom of the index, after J.P. Morgan revised its stock recommendation to “underweight” Monday morning.


The pan-European Stoxx 600 was up more than 2 percent during early morning deals, with all sectors in positive territory. Germany’s DAX index led the gains among the major bourses, surging over 2.5 percent Monday morning. Looking at individual stocks, Netherlands-based pharmaceutical company Argenx rose toward the top of the European benchmark. Meanwhile, Dutch company Signify slipped to the bottom of the index, after J.P. Morgan revised its stock recommendation to “underweight” Monday morning.
Europe rallies 2% after US and China agree to temporary trade truce; miners surge 5% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: sam meredith
Keywords: news, cnbc, companies, surge, trade, europe, stocks, stock, index, rallies, china, miners, morning, agree, argenx, worth, temporary, truce, washington, company, shares, underweight


Europe rallies 2% after US and China agree to temporary trade truce; miners surge 5%

The pan-European Stoxx 600 was up more than 2 percent during early morning deals, with all sectors in positive territory. Germany’s DAX index led the gains among the major bourses, surging over 2.5 percent Monday morning.

Europe’s basic resources stocks — with their heavy exposure to China — jumped more than 5 percent shortly after the opening bell, as investors reacted to a cease-fire on tariffs between Washington and Beijing. Antofagsta, Glencore and Anglo American were all trading more than 6 percent higher on the news.

Looking at individual stocks, Netherlands-based pharmaceutical company Argenx rose toward the top of the European benchmark. Shares of the group soared 13 percent after Argenx announced it would enter an exclusive global collaboration and license agreement with Cilag, an affiliate of Jansen. The deal is reported to potentially be worth $1.6 billion.

Meanwhile, Dutch company Signify slipped to the bottom of the index, after J.P. Morgan revised its stock recommendation to “underweight” Monday morning. Shares of the Amsterdam-listed stock were down more than 2 percent.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: sam meredith
Keywords: news, cnbc, companies, surge, trade, europe, stocks, stock, index, rallies, china, miners, morning, agree, argenx, worth, temporary, truce, washington, company, shares, underweight


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Treasury yields rise as the US and China reach truce on trade

U.S. government debt prices sank on Monday, amid news that President Donald Trump’s administration has reached a cease-fire with China on trade tariffs. The yield on the benchmark 10-year Treasury note was seen trading higher at 3.033 percent at around 5:30 a.m. ET, while the benchmark on the 30-year Treasury bond was also in the black, trading at 3.322 percent. Trump lauded a breakthrough on trade with China as “one of the largest deals ever made.” As for auctions, $39 billion in 13-week Treasu


U.S. government debt prices sank on Monday, amid news that President Donald Trump’s administration has reached a cease-fire with China on trade tariffs. The yield on the benchmark 10-year Treasury note was seen trading higher at 3.033 percent at around 5:30 a.m. ET, while the benchmark on the 30-year Treasury bond was also in the black, trading at 3.322 percent. Trump lauded a breakthrough on trade with China as “one of the largest deals ever made.” As for auctions, $39 billion in 13-week Treasu
Treasury yields rise as the US and China reach truce on trade Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: ryan browne, nicolas asfouri, afp, getty images
Keywords: news, cnbc, companies, truce, rise, trade, china, et, yields, federal, trading, president, benchmark, treasury, trump, reach, trumps, rate


Treasury yields rise as the US and China reach truce on trade

U.S. government debt prices sank on Monday, amid news that President Donald Trump’s administration has reached a cease-fire with China on trade tariffs.

The yield on the benchmark 10-year Treasury note was seen trading higher at 3.033 percent at around 5:30 a.m. ET, while the benchmark on the 30-year Treasury bond was also in the black, trading at 3.322 percent. Bond yields move inversely to prices.

Investor focus is mostly attuned to trade developments following the G-20 summit in Argentina. Trump lauded a breakthrough on trade with China as “one of the largest deals ever made.” Both Washington and Beijing agreed not to introduce any additional tariffs on each other’s imports in the short term.

However, there appeared to be some discrepancies between Trump’s line on the deal and the White House’s, as well as the Trump administration’s own description diverging with the Chinese government’s.

Meanwhile, U.S. fixed-income traders continue to be wary around the Federal Reserve’s upcoming policy meeting this month.

Jerome Powell, the central bank’s chairman, said last week that the benchmark interest rate was “just below” the neutral level. That remark appeared to backtrack from a previous statement by Powell in which he said rates were still a “long way” from the targeted neutral rate.

The Federal Open Market Committee, which sets the federal funds rate, will gather for a two-day meeting on December 18, where the central bank is strongly expected to hike interest rates.

In other Fed-related news, New York Fed President John Williams will be making a welcome address and introductory remarks at an annual conference on the evolving structure of the U.S. Treasury market at around 9 a.m. ET. Lael Brainard, a member of the Fed’s board of governors, will make a keynote address at that event at 10:30 a.m. ET.

As for auctions, $39 billion in 13-week Treasury bills and $36 billion in 26-week Treasury bills are due to go on auction on Monday.

On the data front, U.S. PMI manufacturing index numbers will be released at 9:45 a.m. ET, while a ISM manufacturing index and construction spending figures are due at 10 a.m. ET.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: ryan browne, nicolas asfouri, afp, getty images
Keywords: news, cnbc, companies, truce, rise, trade, china, et, yields, federal, trading, president, benchmark, treasury, trump, reach, trumps, rate


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These 20 stocks could be the big winners from the China trade truce – including Apple and Nvidia

6 Hours Ago | 03:55The three-month cease-fire in the trade war should offer a reprieve for United States companies that produce and sell in China. President Donald Trump and Chinese President Xi Jinping struck the agreement on Saturday to pause as tariff negotiations continue for 90 days starting in January. Here are the top 20 U.S. companies with the highest revenue exposure to China, according to Goldman Sachs, which used data from 2017. Bernstein analyst Toni Sacconaghi estimated about 25 per


6 Hours Ago | 03:55The three-month cease-fire in the trade war should offer a reprieve for United States companies that produce and sell in China. President Donald Trump and Chinese President Xi Jinping struck the agreement on Saturday to pause as tariff negotiations continue for 90 days starting in January. Here are the top 20 U.S. companies with the highest revenue exposure to China, according to Goldman Sachs, which used data from 2017. Bernstein analyst Toni Sacconaghi estimated about 25 per
These 20 stocks could be the big winners from the China trade truce – including Apple and Nvidia Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: michael sheetz
Keywords: news, cnbc, companies, truce, tariff, 20, sell, china, big, companies, including, trump, winners, revenue, chinese, trade, xi, week, nvidia, stocks, apple


These 20 stocks could be the big winners from the China trade truce – including Apple and Nvidia

Are the markets overreacting to the trade truce? 6 Hours Ago | 03:55

The three-month cease-fire in the trade war should offer a reprieve for United States companies that produce and sell in China.

President Donald Trump and Chinese President Xi Jinping struck the agreement on Saturday to pause as tariff negotiations continue for 90 days starting in January.

Here are the top 20 U.S. companies with the highest revenue exposure to China, according to Goldman Sachs, which used data from 2017.

Goldman’s list is filled with companies in the semiconductor industry, such as Nvidia and Intel. Many chipmakers sell to manufacturers in China.

Apple’s supply chain in China has also been under scrutiny. The tech giant’s stock fell last week after Trump suggested the U.S. might put a 10 percent tariff on iPhones because of their Chinese components. Bernstein analyst Toni Sacconaghi estimated about 25 percent of Apple’s revenue would be subject to such a tariff.

Trump crowed about the meeting with Xi in a tweet on Monday, saying “relations with China have taken a BIG leap forward!”


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: michael sheetz
Keywords: news, cnbc, companies, truce, tariff, 20, sell, china, big, companies, including, trump, winners, revenue, chinese, trade, xi, week, nvidia, stocks, apple


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US-China agreement is not a truce nor an armistice: Expert

US-China agreement is not a truce nor an armistice: Expert7 Hours AgoSteve Okun of McLarty Associates says markets are overreacting to news that U.S. President Donald Trump and Chinese President Xi Jinping have reached an agreement to delay further tariffs for 90 days.


US-China agreement is not a truce nor an armistice: Expert7 Hours AgoSteve Okun of McLarty Associates says markets are overreacting to news that U.S. President Donald Trump and Chinese President Xi Jinping have reached an agreement to delay further tariffs for 90 days.
US-China agreement is not a truce nor an armistice: Expert Cached Page below :
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US-China agreement is not a truce nor an armistice: Expert

US-China agreement is not a truce nor an armistice: Expert

7 Hours Ago

Steve Okun of McLarty Associates says markets are overreacting to news that U.S. President Donald Trump and Chinese President Xi Jinping have reached an agreement to delay further tariffs for 90 days.


Company: cnbc, Activity: cnbc, Date: 2018-12-02
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Trump could reportedly seek trade truce with China at G-20 despite tough rhetoric

President Donald Trump could push for a compromise on trade with China at this weekend’s G-20 summit in Argentina even after his recent tough talk, The New York Times reported, citing several U.S. officials. This could lead Trump to seek an agreement with China that would delay new tariffs on Chinese goods while the two countries work to resolve their issues. This would be a departure from Trump’s most recent comments on U.S.-China trade relations. The increasingly protectionist stance on U.S-Ch


President Donald Trump could push for a compromise on trade with China at this weekend’s G-20 summit in Argentina even after his recent tough talk, The New York Times reported, citing several U.S. officials. This could lead Trump to seek an agreement with China that would delay new tariffs on Chinese goods while the two countries work to resolve their issues. This would be a departure from Trump’s most recent comments on U.S.-China trade relations. The increasingly protectionist stance on U.S-Ch
Trump could reportedly seek trade truce with China at G-20 despite tough rhetoric Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-28  Authors: fred imbert, qilai shen, bloomberg, getty images
Keywords: news, cnbc, companies, china, trade, times, g20, chinese, tough, tariffs, recent, goods, rhetoric, york, uschina, trump, reportedly, seek, truce, despite


Trump could reportedly seek trade truce with China at G-20 despite tough rhetoric

President Donald Trump could push for a compromise on trade with China at this weekend’s G-20 summit in Argentina even after his recent tough talk, The New York Times reported, citing several U.S. officials.

The report said Trump is increasingly anxious about the impact of a long trade war on financial markets and the economy. This could lead Trump to seek an agreement with China that would delay new tariffs on Chinese goods while the two countries work to resolve their issues.

This would be a departure from Trump’s most recent comments on U.S.-China trade relations. In an interview with The Wall Street Journal, Trump said it is “highly unlikely” that the U.S. would hold off on increasing tariffs on $200 billion of Chinese goods to 25 percent. He also said the U.S. would slap charges on the remaining $267 billion worth of goods from China that are not yet subject to tariffs.

Trump and Chinese President Xi Jinping are scheduled to meet for dinner at the G-20 on Saturday. The two leaders are expected to discuss trade, among other issues.

The increasingly protectionist stance on U.S-China trade has rattled investors all year as they gauge how tougher trade conditions will impact corporate earnings as well as the global economy. Any progress or resolution on the matter would be seen as a positive by investors for the market.

Click here to read the full New York Times story.


Company: cnbc, Activity: cnbc, Date: 2018-11-28  Authors: fred imbert, qilai shen, bloomberg, getty images
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A Santa rally depends on Trump making trade truce and easier tone from Fed

Stocks bounced Monday and Tuesday, but a real year end rally may be elusive unless the market gets positive headlines from President Trump on trade and more dovish comments from the Fed. Now, if you’re long, you’re afraid it’s going to go down more, and if you’re short, you’ve done very well in a very short period of time.” Sohn said it’s possible the market could still rally in the historically strong month of December. Apple did muster a rally Monday,but it was slightly weaker Tuesday after Tr


Stocks bounced Monday and Tuesday, but a real year end rally may be elusive unless the market gets positive headlines from President Trump on trade and more dovish comments from the Fed. Now, if you’re long, you’re afraid it’s going to go down more, and if you’re short, you’ve done very well in a very short period of time.” Sohn said it’s possible the market could still rally in the historically strong month of December. Apple did muster a rally Monday,but it was slightly weaker Tuesday after Tr
A Santa rally depends on Trump making trade truce and easier tone from Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: patti domm, nicholas kamm, afp, getty images
Keywords: news, cnbc, companies, fact, stocks, making, fed, youre, depends, xi, bulls, market, easier, meeting, rally, tone, truce, trade, trump, santa


A Santa rally depends on Trump making trade truce and easier tone from Fed

Stocks bounced Monday and Tuesday, but a real year end rally may be elusive unless the market gets positive headlines from President Trump on trade and more dovish comments from the Fed.

Much market talk has focused on the upcoming Fed meeting Dec. 19, as well as the meeting between President Donald Trump and Chinese President Xi Jinping at the G-20 summit in Buenos Aires at the end of the week. But the market also risks being held back by the fact that the stocks have suffered so much technical damage in the selloff, the third-worst by this point in the fourth quarter in nearly 70 years.

Trump added a new level of nervousness to the market when he said in a Wall Street Journal interview Monday that he would likely proceed with 25 percent tariffs on Chinese goods in January. But comments from top White House economic adviser Larry Kudlow Tuesday helped lift stocks, when he said the White House was in talks with China “at all levels” ahead of Trump’s meeting with Xi on Saturday.

“The frustration levels are rising, regardless of whether this correction goes deeper or morphs into something else, which we think it will, but it’s very much contingent on the outcome of both the Trump, Xi meeting later this week and the Fed in December,” said Julian Emanuel, chief equities and derivatives strategist at BTIG.

Emanuel said there could be a sharp sell off — as much as 14 percent from current levels — if there is no sign of progress on trade.

“Given the fact positioning is so light and people are so defensive, even if there’s a worst case outcome, the downside could be cushioned for now, but it tells a completely different tale for 2019 because a more protracted economic cold war means multiples have to come in,” he said.

Emanuel said the market is frustrating both bulls and bears. “The fact that you’ve had so many gaps in the tape in a sideways market over the past month really just shows the fear of the bulls, which has turned into both fear and frustration,” he said, noting bulls have been expecting a strong year-end rally.

“The bears are getting nervous about their positions as well,” he said. “The fact tech is trying to make a bottom makes everybody nervous…It’s the opposite of what we’ve seen when tech was the momentum darling in 2017, when people got nervous. Now, if you’re long, you’re afraid it’s going to go down more, and if you’re short, you’ve done very well in a very short period of time.”

Even if there is a bigger December bounce coming, unless the market’s internals begin to improve, the market could have a rough road in the beginning of the year. Strategists had expected a rally after the November mid-term elections, but instead there was just more selling that wiped out most of the market’s gains for the year.

Todd Sohn, technical analyst at Strategas. Sohn said it’s possible the market could still rally in the historically strong month of December.

Apple did muster a rally Monday,but it was slightly weaker Tuesday after Trump also said in the interview that he could put tariffs on iPhones. Apple is seen as a battleground stock, and bulls are hoping if it stems losses, the market can move higher.

“You could get a rally into the end of the year, but if the participation concerns don’t subside, that could present some problems for next year,” said Sohn. He said about half the stocks in the S&P 500 are no longer in an uptrend.

Sohn said, as of Monday, about half the stocks in the S&P 500 had their 50-day moving averages below their 200-day moving averages. When that happens, and the market is heading lower, it is seen as a negative trend.

Apple has corrected 27 percent, and shares of Amazon, Google and Facebook have also sold off. “The tough part will be [knowing whether] it’s the low or just an oversold bounce going into the seasonal period,” he said.

As for the major events that could move the market higher, strategists say there has been some improvement on China even if it is superficial, and the Fed needs to sound more cautious about raising rates.

“Investors are expecting at least some softening in the rhetoric between the U.S. and China. That will be a milestone,” said Michael Arone, chief investment strategist at State Street Global Advisors. “If there is an agreement to negotiate and an agreement to hold off on more tariffs, the market could have a strong rally. But if there are more threats and no signs of peace, stocks could see more selling.

Arone said Fed Chairman Jerome Powell could use his speech on Wednesday at the Economic Club of New York to relieve some market anxiety about the Fed. Powell is unlikely to indicate that the Fed will pause in its rate hiking, as some market pros expect, but he could undo some of the aggressive tone from his early October speech when he said the Fed was far from the neutral rate.

“They’re already starting to walk back some of this. I don’t think Powell’s intent in early October was to signal anything about the pace or direction of interest rate hikes, and I think the market overreacted,” Arone said.

He said stocks currently reflect little chance of a trade deal so there could be a bounce once it’s clear which way the meeting between Trump and Xi is going.


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: patti domm, nicholas kamm, afp, getty images
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Whether it’s a hollow truce or a handshake agreement, the G-20 will likely hurt the yuan

“This is about much, much more than just a trade surplus,” said Jonathan Pain, author and publisher of the weekly Pain Report. “We are at the early stages of a long drawn out economic war between America and China.” Michael Every, head of financial markets research Asia-Pacific at Rabobank, characterized the likely upshot of G-20 as “can-kicking at best.” Every said long positions, or bullish bets, on the U.S. dollar and short yuan, or bets the Chinese currency would fall, made sense under such


“This is about much, much more than just a trade surplus,” said Jonathan Pain, author and publisher of the weekly Pain Report. “We are at the early stages of a long drawn out economic war between America and China.” Michael Every, head of financial markets research Asia-Pacific at Rabobank, characterized the likely upshot of G-20 as “can-kicking at best.” Every said long positions, or bullish bets, on the U.S. dollar and short yuan, or bets the Chinese currency would fall, made sense under such
Whether it’s a hollow truce or a handshake agreement, the G-20 will likely hurt the yuan Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: sri jegarajah, -patrick bennett, macro strategist at cibc capital markets, -sean callow, senior currency strategist at westpac
Keywords: news, cnbc, companies, hollow, hurt, weekly, bets, currency, agreement, chinese, yuan, truce, g20, long, yen, pain, war, handshake, likely


Whether it's a hollow truce or a handshake agreement, the G-20 will likely hurt the yuan

“This is about much, much more than just a trade surplus,” said Jonathan Pain, author and publisher of the weekly Pain Report. “We are at the early stages of a long drawn out economic war between America and China.”

Michael Every, head of financial markets research Asia-Pacific at Rabobank, characterized the likely upshot of G-20 as “can-kicking at best.” The Chinese president “can’t deliver on anything the U.S. wants and needs. Hence no deal,” he said.

Every said long positions, or bullish bets, on the U.S. dollar and short yuan, or bets the Chinese currency would fall, made sense under such a scenario. He also said the Japanese yen will likely rise “if risk really accelerates too rapidly.”

National Australia Bank’s currency strategist Rodrigo Catril is expecting a “hollow truce” — where the U.S. agrees to temporarily hold off on further tariff action and both sides agree to talks at a future date to diffuse tensions on a more permanent basis.


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: sri jegarajah, -patrick bennett, macro strategist at cibc capital markets, -sean callow, senior currency strategist at westpac
Keywords: news, cnbc, companies, hollow, hurt, weekly, bets, currency, agreement, chinese, yuan, truce, g20, long, yen, pain, war, handshake, likely


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In Third Point truce, Campbell soup heirs (mostly) band together

Third Point will have input on a third director that Campbell plans to add by its meeting in May 2019. It had pushed back against adding two other Third Point nominees, former Campbell executive Bill Toler and Third Point executive Munib Islam. While there have been prior family fractures, the family has historically banded together to protect the soup company. The brother and sister have long been fiercely loyal to the soup company. Those challenges, along with a falling stock price, made it un


Third Point will have input on a third director that Campbell plans to add by its meeting in May 2019. It had pushed back against adding two other Third Point nominees, former Campbell executive Bill Toler and Third Point executive Munib Islam. While there have been prior family fractures, the family has historically banded together to protect the soup company. The brother and sister have long been fiercely loyal to the soup company. Those challenges, along with a falling stock price, made it un
In Third Point truce, Campbell soup heirs (mostly) band together Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-26  Authors: lauren hirsch, richard levine, corbis, getty images
Keywords: news, cnbc, companies, truce, campbells, add, company, strawbridge, family, point, heirs, band, board, soup, campbell, ceo


In Third Point truce, Campbell soup heirs (mostly) band together

Campbell Soup announced on Monday the terms of a truce it has reached with Third Point, which will add two of the activist fund’s nominees to its board: former Blue Buffalo CEO Kurt Schmidt and Comscore President Sarah Hofstetter.

Campbell shareholders are set to meet on Thursday. Shares of Campbell were down more than 4 percent in afternoon trading.

As part of the deal, Campbell will expand the size of its board by at least two board seats. Campbell can expand it to 14 with board approval. Its bylaws could be amended to boost the board even more.

Third Point will have input on a third director that Campbell plans to add by its meeting in May 2019. It will also have input on Campbell’s CEO search.

Campbell had previously said it would add Hofstetter and Schmidt to its board. It had pushed back against adding two other Third Point nominees, former Campbell executive Bill Toler and Third Point executive Munib Islam.

The settlement concludes a months-long proxy battle that ended far different than it began. Dan Loeb’s Third Point had first pushed for a sale of the company and later a full ouster of its board. Campbell has so far remained independent and granted only two of Third Point’s nominees seats on its board.

Third Point has faced steep odds since the onset. The descendants of Campbell’s founder own at least 41 percent of the company. While there have been prior family fractures, the family has historically banded together to protect the soup company. Three of Campbell’s heirs sit on its board.

Third Point first unveiled its stake in Campbell in August. The soup company was vulnerable — just months prior, it had announced a strategic review and the sudden departure of its CEO after “unacceptable” earnings results. Third Point said the “only justifiable outcome” of the review was a sale to a strategic buyer.

To support its efforts, Third Point partnered with George Strawbridge Jr., a descendant of soup company’s founder. Strawbridge’s son has in the past pitched to certain Campbell board members the idea of a sale to Kraft Heinz, a person familiar with the situation tells CNBC.

In order for Third Point and Strawbridge’s campaign to work, Strawbridge needed to turn at least some his family members to his side. Two of them seemed unlikely: Mary Alice Malone and Bennett Dorrance, children of Campbell’s former chairman who collectively own roughly 33.1 percent of the company. The brother and sister have long been fiercely loyal to the soup company.

How other family members might fall, though, was less clear. Bennett and Mary Alice’s cousin, board member Archie Van Beuren, has sole voting power of the Campbell Voting Trust, through which other Dorrance descendants together hold a combined 5.85 percent of Campbell. Cousin Charlotte Weber owns roughly 4 percent in the soup company.

Those family members struck a blow to the Third Point and Strawbridge pairing when they publicly pledged their allegiance to the soup company in October.

Meantime, Third Point and Strawbridge faced other obstacles. Kraft Heinz may have previously flirted with the idea of buying Campbell, but the industry has changed significantly over the past few years. Kraft Heinz, once Wall Street’s darling due to its ability to slash costs from bloated food companies, has had its own recent struggles with growth. Those challenges, along with a falling stock price, made it unlikely it would want to pay big dollars to buy the struggling soup company.

Third Point ultimately moved from demanding a sale to saying it would accept other moves, including a split. Meantime, after initial calls to replace all of Campbell’s board, it lobbied to add only five directors to its board.

A series of missteps and poor financial performance, though, had left Campbell with vulnerabilities of its own. Campbell has delivered a 19 percent total shareholder return over the last 20 years, while the S&P 500 has nearly tripled in that period. It hasn’t had a CEO since Morrison’s abrupt departure in May.

It is now selling its fresh food business, undoing efforts to move into the faster-growing area of the grocery store. After struggles due to inexperience and an ill-timed drought, the fresh food unit this past quarter posted an operating loss of $3 million. Campbell’s most recent acquisition, its $6.2 billion purchase of pretzel and chip company Snyder’s-Lance, more than tripled its debt burden.

“Subpar oversight” of issues such as M&A, as well as its financial performance, helped drive shareholder advisory firm ISS’ support of Third Point’s five-person slate, announced earlier this month. The opinion of the influential firm put pressure on Campbell to offer board concessions, even if family votes helped fortify its defenses.

The opinion came before Campbell’s recent better-than-expected first-quarter earnings.

With its proxy battle concluded, Campbell is now likely to refocus on its CEO search and the businesses it is selling to pay down the debt it accumulated through its Snyder’s-Lance acquisition. It has also been working to turn around its soup business.

“The CEO hiring becomes the next headline for the company, in our view, and we believe the company is more likely to entertain an external candidate now that Third Point is involved in the process,” wrote analysts at Stifel this morning.

Meantime, while new voices may add urgency to its turnaround, the company requires two-thirds shareholder vote approval for major deals, ensuring the family’s voice continues to be a powerful one.


Company: cnbc, Activity: cnbc, Date: 2018-11-26  Authors: lauren hirsch, richard levine, corbis, getty images
Keywords: news, cnbc, companies, truce, campbells, add, company, strawbridge, family, point, heirs, band, board, soup, campbell, ceo


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Expect a photo op and a ‘mock deal’ at the Trump-Xi meeting — not a long-term truce, says economist

Expect a photo opportunity, a “mock deal,” and temporary market relief from the much-touted meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 meeting, an economist said on Friday. “We don’t think this deal will be engineering a long-term truce between the two countries,” Bo Zhuang, chief economist and director of China research at TS Lombard, said of the meeting in Buenos Aires, Argentina next week. Zhuang told CNBC he expected a “photo op” and a prob


Expect a photo opportunity, a “mock deal,” and temporary market relief from the much-touted meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 meeting, an economist said on Friday. “We don’t think this deal will be engineering a long-term truce between the two countries,” Bo Zhuang, chief economist and director of China research at TS Lombard, said of the meeting in Buenos Aires, Argentina next week. Zhuang told CNBC he expected a “photo op” and a prob
Expect a photo op and a ‘mock deal’ at the Trump-Xi meeting — not a long-term truce, says economist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-23  Authors: huileng tan
Keywords: news, cnbc, companies, expect, op, trade, war, temporary, economist, trumpxi, yuan, chinese, truce, longterm, deal, mock, meeting, zhuang, manipulator


Expect a photo op and a 'mock deal' at the Trump-Xi meeting — not a long-term truce, says economist

Expect a photo opportunity, a “mock deal,” and temporary market relief from the much-touted meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping at the G-20 meeting, an economist said on Friday.

“We don’t think this deal will be engineering a long-term truce between the two countries,” Bo Zhuang, chief economist and director of China research at TS Lombard, said of the meeting in Buenos Aires, Argentina next week.

Zhuang told CNBC he expected a “photo op” and a probable “mock deal” from the meeting between the leaders of the world’s two largest economies, “which means there will be temporary market-positive feedback from that.”

But trade tensions will continue to escalate, he added.

China’s economy will be hit by the trade war, with real GDP growth getting shaved by 0.5 to 0.7 percentage points from the beginning of 2019, he said.

Zhuang said China doesn’t want to provoke further escalation in bilateral relations with the U.S., but Beijing may actually let the Chinese yuan weaken should the tariff fight continue.

As for the risk of being labeled a “currency manipulator” should the Chinese yuan decline further, Zhuang said there appeared to be little downside risks from that.

“Everything has already happened i.e. putting in tariffs, negotiations. Trade war was the worse case scenario even before being labeled a currency manipulator,” said Zhuang.


Company: cnbc, Activity: cnbc, Date: 2018-11-23  Authors: huileng tan
Keywords: news, cnbc, companies, expect, op, trade, war, temporary, economist, trumpxi, yuan, chinese, truce, longterm, deal, mock, meeting, zhuang, manipulator


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