Toys R Us built a kingdom and the world’s biggest toy store. Then, they lost it.

Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. In its heyday in th


Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. In its heyday in th
Toys R Us built a kingdom and the world’s biggest toy store. Then, they lost it. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-26  Authors: lauren hirsch, eduardo munoz, jacques m chenet, corbis, getty images, scott mlyn, peter foley, bloomberg, jason alden
Keywords: news, cnbc, companies, written, toy, biggest, toys, worlds, built, went, store, lost, stores, lazarus, world, week, kingdom, important


Toys R Us built a kingdom and the world's biggest toy store. Then, they lost it.

The toy emporium that Charles P. Lazarus envisioned has been reduced to dusty floors and empty shelves.

Much has been said about the demise of the toy empire, which this week announced its plan to liquidate. There have been fingers pointed at corporate raiders, Amazon and big-box stores. All contributed to its undoing.

Ultimately, though, Toys R Us’ collapse is a story of loyalty run dry. The store in its early days fostered devotion from customers and toymakers. In the end, it lost hold on both.

Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. It didn’t invest in its stores, even as it was adding to the fleet, leaving it vulnerable when new competition moved in.

The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. By 1978, he had created a toy superstore large enough to become a public company.

In its heyday in the 1980s and 1990s, it was the most important toy store in the country, if not the world. Its strength grew as competitors Kiddie City and Child World went out of business.


Company: cnbc, Activity: cnbc, Date: 2019-01-26  Authors: lauren hirsch, eduardo munoz, jacques m chenet, corbis, getty images, scott mlyn, peter foley, bloomberg, jason alden
Keywords: news, cnbc, companies, written, toy, biggest, toys, worlds, built, went, store, lost, stores, lazarus, world, week, kingdom, important


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US named the world’s most competitive economy

WEF’s Zahidi: US should do more to improve workers’ rights 6 Hours Ago | 05:29The United States was named the world’s most competitive economy by the World Economic Forum (WEF) on Wednesday. In its Global Competitiveness Index, WEF — known for its annual economic forum in Davos, Switzerland — ranked the U.S. as the most competitive of 140 economies, the first time the nation has reached the top spot in a decade. Singapore and Germany ranked second and third respectively, with researchers finding


WEF’s Zahidi: US should do more to improve workers’ rights 6 Hours Ago | 05:29The United States was named the world’s most competitive economy by the World Economic Forum (WEF) on Wednesday. In its Global Competitiveness Index, WEF — known for its annual economic forum in Davos, Switzerland — ranked the U.S. as the most competitive of 140 economies, the first time the nation has reached the top spot in a decade. Singapore and Germany ranked second and third respectively, with researchers finding
US named the world’s most competitive economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: chloe taylor
Keywords: news, cnbc, companies, ranked, global, economies, competitiveness, wef, worlds, named, competitive, economic, rights, forum, economy


US named the world's most competitive economy

WEF’s Zahidi: US should do more to improve workers’ rights 6 Hours Ago | 05:29

The United States was named the world’s most competitive economy by the World Economic Forum (WEF) on Wednesday.

In its Global Competitiveness Index, WEF — known for its annual economic forum in Davos, Switzerland — ranked the U.S. as the most competitive of 140 economies, the first time the nation has reached the top spot in a decade.

Singapore and Germany ranked second and third respectively, with researchers finding the European economy was now less competitive than those in East Asia and the Pacific.

The report mapped the competitiveness of global economies using 98 indicators including workforce diversity, press freedom, labor rights, and disruptive businesses.


Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: chloe taylor
Keywords: news, cnbc, companies, ranked, global, economies, competitiveness, wef, worlds, named, competitive, economic, rights, forum, economy


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Canada is now the world’s largest legal marijuana marketplace

Ian Power was among the first to buy legal recreational marijuana in Canada but he has no plans to smoke it. He plans to frame it. Canada became the largest country with a legal national marijuana marketplace as sales began early Wednesday in Newfoundland. Canada has had legal medical marijuana since 2001 and Prime Minister Justin Trudeau’s government has spent two years working toward expanding that to include recreational marijuana. The goal is to better reflect society’s changing opinion abou


Ian Power was among the first to buy legal recreational marijuana in Canada but he has no plans to smoke it. He plans to frame it. Canada became the largest country with a legal national marijuana marketplace as sales began early Wednesday in Newfoundland. Canada has had legal medical marijuana since 2001 and Prime Minister Justin Trudeau’s government has spent two years working toward expanding that to include recreational marijuana. The goal is to better reflect society’s changing opinion abou
Canada is now the world’s largest legal marijuana marketplace Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-17
Keywords: news, cnbc, companies, power, canada, plans, marketplace, worlds, recreational, going, largest, im, marijuana, official, frame, smoke, legal


Canada is now the world's largest legal marijuana marketplace

Ian Power was among the first to buy legal recreational marijuana in Canada but he has no plans to smoke it. He plans to frame it.

Canada became the largest country with a legal national marijuana marketplace as sales began early Wednesday in Newfoundland. Power was first in line at a store in St. John’s, Newfoundland.

“I am going to frame it and hang it on my wall. I’m not even going to smoke it. I’m just going to save it forever,” Power said.

And there was more good news for pot aficionados: Hours before a handful of retail outlets opened in the country’s easternmost province a federal official told The Associated Press that Canada will pardon all those with convictions for possessing up to 30 grams of marijuana, the now-legal threshold.

A formal announcement was planned for later Wednesday. The official, who was not authorized to speak public ahead of the announcement, said those who want to take advantage of the pardons will have to apply.

Canada has had legal medical marijuana since 2001 and Prime Minister Justin Trudeau’s government has spent two years working toward expanding that to include recreational marijuana. The goal is to better reflect society’s changing opinion about marijuana and bring black market operators into a regulated system.

Uruguay was first was the first country to legalize marijuana.


Company: cnbc, Activity: cnbc, Date: 2018-10-17
Keywords: news, cnbc, companies, power, canada, plans, marketplace, worlds, recreational, going, largest, im, marijuana, official, frame, smoke, legal


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Khashoggi disappearance puts Saudi Arabia’s vision of hosting major sports events under the microscope

Saudi Arabia finds itself in the midst of heightened diplomatic tensions with the West over the disappearance of U.S.-based journalist Jamal Khashoggi. Tuesday saw South American rivals Brazil and Argentina meet in Jeddah to play an international soccer friendly a long way from South America. However, both he and Djokovic have faced an amount of backlash from tennis fans across social media, asking them to reconsider playing in Saudi Arabia. It’s set to be the second time the organization has he


Saudi Arabia finds itself in the midst of heightened diplomatic tensions with the West over the disappearance of U.S.-based journalist Jamal Khashoggi. Tuesday saw South American rivals Brazil and Argentina meet in Jeddah to play an international soccer friendly a long way from South America. However, both he and Djokovic have faced an amount of backlash from tennis fans across social media, asking them to reconsider playing in Saudi Arabia. It’s set to be the second time the organization has he
Khashoggi disappearance puts Saudi Arabia’s vision of hosting major sports events under the microscope Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: adam reed, clive brunskill, getty images
Keywords: news, cnbc, companies, disappearance, tennis, events, wwe, south, brazil, worlds, sporting, puts, saudi, khashoggi, arabia, match, microscope, major, world, vision, arabias, hosting


Khashoggi disappearance puts Saudi Arabia's vision of hosting major sports events under the microscope

Saudi Arabia finds itself in the midst of heightened diplomatic tensions with the West over the disappearance of U.S.-based journalist Jamal Khashoggi. The effects of which look likely to have wider ramifications for various high-profile sporting events scheduled to take place in the country over the coming months.

Sport is just one of the ways Saudi Arabia is attempting to show a move away from its conservative image, with Crown Prince Mohammed bin Salman bankrolling several long-term partnerships and attracting some of the world’s biggest teams and stars.

Tuesday saw South American rivals Brazil and Argentina meet in Jeddah to play an international soccer friendly a long way from South America.

The world’s most expensive soccer player Neymar, Liverpool FC’s Roberto Firmino and Philippe Coutinho of Barcelona all featured in the game for Brazil. However, Lionel Messi continued his mini-sabbatical from the Argentina side, as he has time off from international football since the World Cup, with Manchester City forward Sergio Aguero also missing.

The result of the match was a 1-0 win for Brazil and was largely uneventful, but images of Neymar being presented with a trophy after the match serve as invaluable positive PR for Saudi Arabia.

More opportunities have also been built into the Saudi sporting calendar, including the top two ranked tennis players in the world Rafael Nadal and Novak Djokovic facing off at Jeddah’s King Abdullah Sports City in an exhibition match on December 22. The largely ceremonial event is being billed as the “King Salman Tennis Championship” and is just three weeks before 2019’s first Grand Slam is due to start at the Australian Open.

“Thanks for the invitation and looking forward to playing and visiting for the first time!” World number one Nadal said on Twitter last week.

However, both he and Djokovic have faced an amount of backlash from tennis fans across social media, asking them to reconsider playing in Saudi Arabia.

The world of wrestling and sports entertainment has also been drawn into the debate as well, with the WWE still pressing ahead with its “Crown Jewel” pay-per-view in Riyadh on November 2. It’s set to be the second time the organization has held a show in Saudi Arabia this year, as part of a multi-million dollar 10-year partnership. Although recent events involving Khashoggi has led WWE officials to reiterate to CNBC that it is “currently monitoring the situation.”


Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: adam reed, clive brunskill, getty images
Keywords: news, cnbc, companies, disappearance, tennis, events, wwe, south, brazil, worlds, sporting, puts, saudi, khashoggi, arabia, match, microscope, major, world, vision, arabias, hosting


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Billionaire art collector says Chinese museums are buying up the world’s art

One of the world’s top art collectors said the art market is unlikely to cool or crash anytime soon, due in part to soaring demand from new museums in China. But he said the art market will be fueled in part by China, and the thousands of new Chinese museums that are slated to open in the coming years. “In 1949, when Mao took over China, there were 25 museums in China,” Hill told CNBC during its Net/Net Conference. There are under 7,000 museums in China but they’re growing at between 500-1,000 m


One of the world’s top art collectors said the art market is unlikely to cool or crash anytime soon, due in part to soaring demand from new museums in China. But he said the art market will be fueled in part by China, and the thousands of new Chinese museums that are slated to open in the coming years. “In 1949, when Mao took over China, there were 25 museums in China,” Hill told CNBC during its Net/Net Conference. There are under 7,000 museums in China but they’re growing at between 500-1,000 m
Billionaire art collector says Chinese museums are buying up the world’s art Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: robert frank
Keywords: news, cnbc, companies, hong, worlds, museums, billionaire, art, market, chinese, hill, painting, million, collector, demand, china, buying


Billionaire art collector says Chinese museums are buying up the world's art

One of the world’s top art collectors said the art market is unlikely to cool or crash anytime soon, due in part to soaring demand from new museums in China.

Bubbles and busts are nearly impossible to predict in any market, said J. Tomilson Hill, the vice chairman of Blackstone, who is about to open the Hill Art Foundation private museum in New York. But he said the art market will be fueled in part by China, and the thousands of new Chinese museums that are slated to open in the coming years.

“In 1949, when Mao took over China, there were 25 museums in China,” Hill told CNBC during its Net/Net Conference. “Do you know how many museums there are in the United States today? 35,000. There are under 7,000 museums in China but they’re growing at between 500-1,000 museums a year. So there is a massive demand for interesting things to either look at, to talk about.”

The push is part of China’s efforts to not only become the world’s economic super power, but also to become a cultural force on par with the U.S. and Europe. New museums in China have been willing to pay astronomic prices for trophy works.

Liu Yiqian, a former taxi driver turned billionaire in China, paid $170 million for a Modigliani painting at Christie’s in 2015. The painting was purchased for one of his two museums in Shanghai.

The Chinese government is also requiring many new real estate developments to build museums as a condition to get government approvals. That will create demand for art for years, as China’s building boom continues. Last month, Sotheby’s racked up sales of over $466 million at its Hong Kong sales, including a $65 million painting that broke a record for Hong Kong.

Hill also said that art remains an attractive asset for the global rich who want a store of value they can take offshore, or use to avoid taxes. The massive amounts of art piling up in duty-free warehouses in Singapore, Hong Kong and Switzerland are a sign that the rich are using art as a way to offshore their wealth, he said.

“If you’re looking to avoid taxes, the art market is a pretty good way to do that,” he said. “And it’s really hard to track.”


Company: cnbc, Activity: cnbc, Date: 2018-10-17  Authors: robert frank
Keywords: news, cnbc, companies, hong, worlds, museums, billionaire, art, market, chinese, hill, painting, million, collector, demand, china, buying


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World’s longest non-stop flight from Singapore to New York set for take off

Singapore Airlines will claim the crown of the world’s longest service by miles flown after it relaunched its direct service between Singapore and New York on Thursday. The record setting flight took off at 11.45 p.m. Singapore time, and is due to touch down on Friday at 6:00 a.m. New York time. Singapore Airlines has previously operated the same route but abandoned it in 2013 due to high oil prices and the constraints of less economic four-engine aircraft. The cabin on the new service has no ec


Singapore Airlines will claim the crown of the world’s longest service by miles flown after it relaunched its direct service between Singapore and New York on Thursday. The record setting flight took off at 11.45 p.m. Singapore time, and is due to touch down on Friday at 6:00 a.m. New York time. Singapore Airlines has previously operated the same route but abandoned it in 2013 due to high oil prices and the constraints of less economic four-engine aircraft. The cabin on the new service has no ec
World’s longest non-stop flight from Singapore to New York set for take off Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: david reid
Keywords: news, cnbc, companies, premium, nonstop, seats, singapore, service, class, hours, flight, airlines, longest, set, york, economy, miles, worlds


World's longest non-stop flight from Singapore to New York set for take off

Singapore Airlines will claim the crown of the world’s longest service by miles flown after it relaunched its direct service between Singapore and New York on Thursday.

An Airbus A350-900ULR has taken off from Changi Airport on its way to Newark Liberty International Airport, and will cover 9,000 nautical miles (9,537 miles) in a scheduled 18 hours and 25 minutes. The record setting flight took off at 11.45 p.m. Singapore time, and is due to touch down on Friday at 6:00 a.m. New York time.

Singapore Airlines has previously operated the same route but abandoned it in 2013 due to high oil prices and the constraints of less economic four-engine aircraft.

The cabin on the new service has no economy class, instead being divided into 67 business-class seats and 94 premium economy. Around 5 hours prior to take off, business class tickets were no longer available but premium economy seats could be purchased on the airline’s website for $2,155.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: david reid
Keywords: news, cnbc, companies, premium, nonstop, seats, singapore, service, class, hours, flight, airlines, longest, set, york, economy, miles, worlds


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Mohamed El-Erian: The US economy looks ‘good’ for the ‘next couple of years at least’

Mohamed El-Erian, chief economic advisor for Allianz, told CNBC on Tuesday that the U.S. economy is “in a good place in terms of growth, the U.S. economy is in a good place in terms of attracting capital.” For his part, El-Erian said the IMF “is too pessimistic” about the world’s largest economy. El-Erian said that any disturbances to U.S. economic growth were likely to come from beyond its borders. “We get to a recession if there are spillbacks from the rest of the world. I think the concern is


Mohamed El-Erian, chief economic advisor for Allianz, told CNBC on Tuesday that the U.S. economy is “in a good place in terms of growth, the U.S. economy is in a good place in terms of attracting capital.” For his part, El-Erian said the IMF “is too pessimistic” about the world’s largest economy. El-Erian said that any disturbances to U.S. economic growth were likely to come from beyond its borders. “We get to a recession if there are spillbacks from the rest of the world. I think the concern is
Mohamed El-Erian: The US economy looks ‘good’ for the ‘next couple of years at least’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-09  Authors: everett rosenfeld, david orrell
Keywords: news, cnbc, companies, told, good, mohamed, growth, spending, economic, recession, economy, rest, looks, terms, elerian, worlds, couple, world


Mohamed El-Erian: The US economy looks 'good' for the 'next couple of years at least'

The U.S. economy is poised for growth that’s better than the International Monetary Fund projects, and there’s nothing on the domestic front that could knock it into a recession, according to one of the world’s most closely followed economists.

Mohamed El-Erian, chief economic advisor for Allianz, told CNBC on Tuesday that the U.S. economy is “in a good place in terms of growth, the U.S. economy is in a good place in terms of attracting capital.”

That stood in some contrast to the IMF, which maintained its prediction of 2.9 percent growth for the U.S. this year, but reduced its 2019 American growth prediction from 2.7 percent to 2.5 percent in its World Economic Outlook published on Tuesday.

For his part, El-Erian said the IMF “is too pessimistic” about the world’s largest economy.

“We’ve got three drivers of domestic demand all hitting at the same time: government spending — which is going to get stronger not weaker — household spending, and business investment,” he told CNBC’s Nancy Hungerford at the Barclays Asia Forum in Singapore. “That takes the U.S. through the next couple of years at least, so it wouldn’t surprise me if we get 3 percent growth for this year and next year.”

El-Erian said that any disturbances to U.S. economic growth were likely to come from beyond its borders.

“We get to a recession if there are spillbacks from the rest of the world. The U.S. on its own need not have a recession,” he said.

“Yes, this has been a very long expansion, but it’s been a very slow expansion, so this is qualitatively different from what we’ve seen in the past. I think the concern is about the rest of the world,” the chief economic advisor added.


Company: cnbc, Activity: cnbc, Date: 2018-10-09  Authors: everett rosenfeld, david orrell
Keywords: news, cnbc, companies, told, good, mohamed, growth, spending, economic, recession, economy, rest, looks, terms, elerian, worlds, couple, world


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British banks could benefit from US-China trade war: Barclays chairman

British lenders may stand to gain as Washington and Beijing go head to head over trade tariffs, according to one of the world’s largest banks. When asked if American banks would face reduced market access to China in light of escalating trade tensions, Gerry Grimstone, chairman of Barclays Bank PLC, said: “I hate to say so but I think it’s right.” If Beijing targets U.S. banks in that manner, British institutions may get ahead of their American rivals in the world’s second-largest economy, Grims


British lenders may stand to gain as Washington and Beijing go head to head over trade tariffs, according to one of the world’s largest banks. When asked if American banks would face reduced market access to China in light of escalating trade tensions, Gerry Grimstone, chairman of Barclays Bank PLC, said: “I hate to say so but I think it’s right.” If Beijing targets U.S. banks in that manner, British institutions may get ahead of their American rivals in the world’s second-largest economy, Grims
British banks could benefit from US-China trade war: Barclays chairman Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-09  Authors: nyshka chandran
Keywords: news, cnbc, companies, british, benefit, war, uschina, chairman, grimstone, nation, world, barclays, banks, sachs, largest, theyre, worlds, china, trade


British banks could benefit from US-China trade war: Barclays chairman

British lenders may stand to gain as Washington and Beijing go head to head over trade tariffs, according to one of the world’s largest banks.

When asked if American banks would face reduced market access to China in light of escalating trade tensions, Gerry Grimstone, chairman of Barclays Bank PLC, said: “I hate to say so but I think it’s right.”

If Beijing targets U.S. banks in that manner, British institutions may get ahead of their American rivals in the world’s second-largest economy, Grimstone told CNBC’s Nancy Hungerford at the annual Barclays Asia Forum in Singapore.

“I was speaking at a forum earlier this year and they [the Chinese] put the Goldman Sachs chairman in a hotel as far as possible away from the conference location … So in little ways like that, China makes their displeasure known.”

Goldman Sachs did not immediately respond to a request for comment on Grimstone’s statement.

Grimstone, who is also chairman of Standard Life Aberdeen — one of the U.K.’s largest savings and investments businesses, described the U.S.- China trade spat as a long-term issue that may not be resolved anytime soon.

“China’s focused on 2049. That seems a long way away but they’re the one country in the world which plans for those sort of horizons and by 2049, the 100th anniversary of the founding of the Chinese state, they’re hoping to regain their position as the world’s top nation,” Grimstone said.

He identified changes in the global balance of power as one of his top worries: “We are going back to a time where we are going to see more conflict between nation states, less multilateralism, these are very big changes, not the world in which I grew up in.”


Company: cnbc, Activity: cnbc, Date: 2018-10-09  Authors: nyshka chandran
Keywords: news, cnbc, companies, british, benefit, war, uschina, chairman, grimstone, nation, world, barclays, banks, sachs, largest, theyre, worlds, china, trade


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China is dramatically cutting US oil imports, analyst says, even though it’s not on tariff list

Oil may not have been on China’s official tariff list, but the country appears to have not imported any U.S. crude in August, according to Bimco’s chief shipping analyst, Peter Sand, who cited U.S. Census data. Bimco is the world’s largest shipowners association with members in more than 120 countries that control around 65 percent of international tonnage. According to Sand’s research, Chinese imports accounted for 23 percent of total U.S. crude exports in 2017 and were averaging 22 percent for


Oil may not have been on China’s official tariff list, but the country appears to have not imported any U.S. crude in August, according to Bimco’s chief shipping analyst, Peter Sand, who cited U.S. Census data. Bimco is the world’s largest shipowners association with members in more than 120 countries that control around 65 percent of international tonnage. According to Sand’s research, Chinese imports accounted for 23 percent of total U.S. crude exports in 2017 and were averaging 22 percent for
China is dramatically cutting US oil imports, analyst says, even though it’s not on tariff list Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-09  Authors: lori ann larocco, vcg, getty images
Keywords: news, cnbc, companies, analyst, tonnageaccording, oil, worlds, total, list, cutting, tariff, crude, shipping, imported, dramatically, seven, china, shipowners, sand, imports


China is dramatically cutting US oil imports, analyst says, even though it's not on tariff list

Oil may not have been on China’s official tariff list, but the country appears to have not imported any U.S. crude in August, according to Bimco’s chief shipping analyst, Peter Sand, who cited U.S. Census data.

Bimco is the world’s largest shipowners association with members in more than 120 countries that control around 65 percent of international tonnage.

According to Sand’s research, Chinese imports accounted for 23 percent of total U.S. crude exports in 2017 and were averaging 22 percent for this year, up until August.

“In the first seven months of 2018 China imported an averaged 10.6 million barrels,” Sand said.


Company: cnbc, Activity: cnbc, Date: 2018-10-09  Authors: lori ann larocco, vcg, getty images
Keywords: news, cnbc, companies, analyst, tonnageaccording, oil, worlds, total, list, cutting, tariff, crude, shipping, imported, dramatically, seven, china, shipowners, sand, imports


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US inflation is the world’s most important economic variable

U.S. inflation is the world’s most important economic variable. That proposition is explained by its corollary: Rising inflation is the only problem the U.S. Federal Reserve cannot solve by increasing its money supply. But none of those measures are applicable to situations of accelerating inflation and a deteriorating outlook for the value of fixed-income assets. That is a problem the Fed must address with sustained liquidity withdrawals, increasing credit costs and the ensuing growth recession


U.S. inflation is the world’s most important economic variable. That proposition is explained by its corollary: Rising inflation is the only problem the U.S. Federal Reserve cannot solve by increasing its money supply. But none of those measures are applicable to situations of accelerating inflation and a deteriorating outlook for the value of fixed-income assets. That is a problem the Fed must address with sustained liquidity withdrawals, increasing credit costs and the ensuing growth recession
US inflation is the world’s most important economic variable Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: dr michael ivanovitch, aaron p bernstein
Keywords: news, cnbc, companies, important, problem, markets, increasing, worlds, inflation, rest, economic, economy, yield, rising, fed, variable, credit


US inflation is the world's most important economic variable

U.S. inflation is the world’s most important economic variable.

That proposition is explained by its corollary: Rising inflation is the only problem the U.S. Federal Reserve cannot solve by increasing its money supply.

The Fed can deal with structural problems in credit markets by means of enhanced supervision, regulatory provisions and, all else failing, by open-ended lending in cases of systemic threats to the financial system’s stability.

But none of those measures are applicable to situations of accelerating inflation and a deteriorating outlook for the value of fixed-income assets. That is a problem the Fed must address with sustained liquidity withdrawals, increasing credit costs and the ensuing growth recession of the U.S. economy.

The rest seems obvious: By virtue of its size and powerful policy transmission channels, the American economy sets the pace to demand, output and employment in the rest of the world.

That’s a permanent feature of the world economy some people, and countries, mistakenly take for a thing of the past. Here are a few thoughts on how the Fed will set them straight in the months ahead.

Last week’s 15 basis points increase in the yield of the Treasury’s benchmark 10-year note is a clear signal that bond markets are asking for rising inflation premiums to hold the government’s long-term liabilities. In other words, unhinged inflation expectations are indicating markets’ declining confidence in the Fed’s ability to deliver stable prices over the relevant investment horizon.


Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: dr michael ivanovitch, aaron p bernstein
Keywords: news, cnbc, companies, important, problem, markets, increasing, worlds, inflation, rest, economic, economy, yield, rising, fed, variable, credit


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