U.S. stocks are sinking on worries about Europe’s growth—here are 5 experts’ reactions

• UBS’ Art Cashin said Thursday’s drop was a sign “that things are slowing down. And this morning, when the market began to erode, they broke through those lows, and that’s when selling accelerated. You’ve got things like industrials taking part, financials, small-cap; that’s healthy for a market as well. I don’t think that we’re going to suffer from that. And I visited with him yesterday and I was very much reminded of that, and I think the U.S. absolutely can remain strong.


• UBS’ Art Cashin said Thursday’s drop was a sign “that things are slowing down. And this morning, when the market began to erode, they broke through those lows, and that’s when selling accelerated. You’ve got things like industrials taking part, financials, small-cap; that’s healthy for a market as well. I don’t think that we’re going to suffer from that. And I visited with him yesterday and I was very much reminded of that, and I think the U.S. absolutely can remain strong.
U.S. stocks are sinking on worries about Europe’s growth—here are 5 experts’ reactions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: lizzy gurdus, alexander shcherbak, tass, getty images, thomas lohnes, john greim, lightrocket, adam jeffery, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, sinking, worries, europes, bounce, thats, recession, reactions, growthhere, stocks, experts, good, europe, growth, things, think, dont, market


U.S. stocks are sinking on worries about Europe's growth—here are 5 experts' reactions

U.S. stocks took a hit Thursday on concerns around global growth after the European Central Bank cut its forecast for 2019 and announced plans to stimulate the European economy, but Wall Street experts say it’s not all bad.

Even as weaker growth and inflation in Europe typically don’t help the U.S. economy, some see the decision by ECB President Mario Draghi as a welcome reprieve for a U.S. stock market that has seen especially volatile trading in recent months.

Here are five experts’ takes on Thursday’s moves:

• Art Hogan, chief market strategist at National Securities, saw the action as the beginning of U.S. stocks digesting their recent rally: “Our clients very much are attuned to the fact that we went down too far, too fast in the fourth quarter of last year, particularly in December. So, therefore, that V-shaped recovery has probably been too quick. And I think we’re at a point where investors understand that when you move that quickly in one direction, you have to take some time to digest that move. I think we’re at that period now, so I’m not surprised at all [that we’re] finding ourselves spending some time between 2,750 and 2,800, unless and until we actually see the manifestation of good news coming out of the things we’ve started to price in, things like the trade war being over. We need to see that turn into good news and economic data.”

• UBS’ Art Cashin said Thursday’s drop was a sign “that things are slowing down. We’re getting more and more reports that this face-off between the U.S. and China is beginning to affect global trade as a whole, and Europe seems to be floundering a bit. You’ve got nothing good from Draghi. You’re at important technical levels. Monday, you had gone down and had a nice bounce. Yesterday, we retested those lows, but we didn’t get a bounce. And this morning, when the market began to erode, they broke through those lows, and that’s when selling accelerated. People said, ‘I don’t want this risk profile here.’ So, you went through 25,611 and now you’re trying to bounce off 25,360. And we’ll see. So far, it’s not terribly inspiring a bounce.”

• Liz Young, director of market strategy at BNY Mellon, said recession worries were probably overblown: “The data doesn’t go back very far, but since the ’70s, it’s never been the case that somebody else leads us into a global recession. The U.S. always leads that. So there’s no signs of recession in the U.S. right now, or at least very soft signs, and we’re not expecting that to come to fruition anytime soon. […] We had 70 percent of the market make a one-month high recently. … That doesn’t happen in a bear market. We’ve had [a] broadening of this rally. You’ve got things like industrials taking part, financials, small-cap; that’s healthy for a market as well. So we’re hoping that it continues to prod along. When a market is up 10, 11, 12 percent in two months, the first two months of the year, it was a lot easier to make a case for it to pull back.”

• Gilman Hill Asset Management’s Jenny Harrington agreed, contending that maybe it’s time for the U.S. market to simply “bump along” for a while: “I think we can make new highs. They just don’t have to be made every day. […] I don’t see it as a storm gathering in Europe. There’s still positive growth, expectations. Yeah, it’s almost nothing. It’s, like, 1 percent. But you have the ECB really working hard to protect the banks and to protect the economy, I think, in a way that they hadn’t done in past recessions in Europe. So … I don’t think that we’re going to suffer from that. I’m just reminded of one quick thing: I have this wonderful client, an older British guy, and he always says, ‘One bets against the U.S. at one’s own peril.’ And I visited with him yesterday and I was very much reminded of that, and I think the U.S. absolutely can remain strong. I think that earnings were down in the first quarter [and] I think that estimates could pick up towards [the] later half of the year.”

• Jon Najarian, of the Najarian Family Office, backed up those points, calling the ECB’s forecast cut a “short-term negative”: “People weren’t sure that this would be a move that he would make and that the ECB in general would push for this. Now that they have and they’ve put it in writing, held a press conference, talked about it, I think, overall, that’s going to be a good thing for Europe. It might not be good for some of the debt that they’re building up with it, but just like our debt, they’re not thinking about that right now.”


Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: lizzy gurdus, alexander shcherbak, tass, getty images, thomas lohnes, john greim, lightrocket, adam jeffery, kcna, thomas barwick getty images
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Fed survey finds adverse impact from government shutdown

The Federal Reserve says the U.S. economy was expanding in January and February, but half the country was seeing fallout from the 35-day partial government shutdown. Some manufacturers expressed worries about weakening global demand for their products and adverse effects from President Donald Trump’s trade policies. In its latest report on economic conditions around the country, the Fed said that 10 of its 12 regions reported “slight-to-moderate growth” over the past two months. The Fed report,


The Federal Reserve says the U.S. economy was expanding in January and February, but half the country was seeing fallout from the 35-day partial government shutdown. Some manufacturers expressed worries about weakening global demand for their products and adverse effects from President Donald Trump’s trade policies. In its latest report on economic conditions around the country, the Fed said that 10 of its 12 regions reported “slight-to-moderate growth” over the past two months. The Fed report,
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Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: saul loeb, afp, getty images
Keywords: news, cnbc, companies, rates, report, reported, finds, shutdown, bank, conditions, central, survey, worries, weakening, impact, country, adverse, fed


Fed survey finds adverse impact from government shutdown

The Federal Reserve says the U.S. economy was expanding in January and February, but half the country was seeing fallout from the 35-day partial government shutdown. Some manufacturers expressed worries about weakening global demand for their products and adverse effects from President Donald Trump’s trade policies.

In its latest report on economic conditions around the country, the Fed said that 10 of its 12 regions reported “slight-to-moderate growth” over the past two months. Two — Philadelphia and St. Louis — reported that conditions were “flat.”

The Fed report, known as the beige book, will be used when central bank officials meet March 19-20 to consider what to do with interest rates. The expectation is that the central bank will remain “patient” and leave rates unchanged.


Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: saul loeb, afp, getty images
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These financial worries are probably preventing you from retiring early

Unexpected outlays for health emergencies were cited as the second-highest worry with regard to retiring early, with 46 percent of respondents. Other top concerns include an economic downturn, at 35 percent; Social Security changes, 33 percent; and inflation, 29 percent. “You might think that you’re OK and you have your healthcare planned for, but are you planning for the average health-care costs?” “Especially for those who have not yet retired, confidence in Medicare is lacking,” Sadowsky said


Unexpected outlays for health emergencies were cited as the second-highest worry with regard to retiring early, with 46 percent of respondents. Other top concerns include an economic downturn, at 35 percent; Social Security changes, 33 percent; and inflation, 29 percent. “You might think that you’re OK and you have your healthcare planned for, but are you planning for the average health-care costs?” “Especially for those who have not yet retired, confidence in Medicare is lacking,” Sadowsky said
These financial worries are probably preventing you from retiring early Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: lorie konish, sripfoto, getty images, peopleimages, joshua lott, brendan mcdermid
Keywords: news, cnbc, companies, financial, unexpected, care, healthcare, early, preventing, probably, worries, health, medicare, sadowsky, retirement, costs, retiring, social, security


These financial worries are probably preventing you from retiring early

Unexpected outlays for health emergencies were cited as the second-highest worry with regard to retiring early, with 46 percent of respondents.

That was topped only by the prospect of outliving their money, with 53 percent. Other top concerns include an economic downturn, at 35 percent; Social Security changes, 33 percent; and inflation, 29 percent.

Americans would be wise to take action and make contingency plans for the unexpected, said Matt Sadowsky, director of retirement and annuities at TD Ameritrade.

“You might think that you’re OK and you have your healthcare planned for, but are you planning for the average health-care costs?” Sadowsky said. “Because you might not be average.”

That includes thinking of how you will handle unexpected bills tied to your health and long-term care, as well as that care for your loved ones, he said.

More from Fixed Income Strategies:

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Now may be the time to use bonds in portfolios

Social Security can buy luxury living in five overseas spots

Most respondents — 76 percent — said they hope to cover their retirement health-care costs with Medicare, although many also said they are not confident Medicare will be there for them in their later years.

“Especially for those who have not yet retired, confidence in Medicare is lacking,” Sadowsky said.

Other popular ways to cover health-care costs in retirement, according to survey respondents, include supplemental health care insurance and Social Security.


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: lorie konish, sripfoto, getty images, peopleimages, joshua lott, brendan mcdermid
Keywords: news, cnbc, companies, financial, unexpected, care, healthcare, early, preventing, probably, worries, health, medicare, sadowsky, retirement, costs, retiring, social, security


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The week ahead: Jobs report needs to silence rising worries about the economy

The jobs data tops the list of important economic news in the week ahead, particularly after a string of disappointing reports showing that both consumers and businesses have pulled back. “We think there’s further upside for this bull market to go. “Whatever the concerns, around trade tariffs, or decelerating corporate profits, we believe this bull market remains very healthy.” When economic reports come in below economists’ expectations, the surprise index falls and a low number for the index i


The jobs data tops the list of important economic news in the week ahead, particularly after a string of disappointing reports showing that both consumers and businesses have pulled back. “We think there’s further upside for this bull market to go. “Whatever the concerns, around trade tariffs, or decelerating corporate profits, we believe this bull market remains very healthy.” When economic reports come in below economists’ expectations, the surprise index falls and a low number for the index i
The week ahead: Jobs report needs to silence rising worries about the economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-01  Authors: patti domm, bryan r smith
Keywords: news, cnbc, companies, quarter, bull, worries, economists, report, needs, ahead, growth, sp, week, low, jobs, economy, rising, economic, silence, market, reports


The week ahead: Jobs report needs to silence rising worries about the economy

Job growth has remained vibrant despite the slow-growing economy, and that’s a trend investors are anxious to see confirmed in the February employment report on Friday.

Even with some economists expecting growth around 1 percent for the first quarter, the labor market has been strong, and economists expect to see 185,000 jobs added in February. The economy is widely expected to bounce back in the second quarter to a pace well above 2 percent, after the temporary headwinds from the government shutdown and polar vortex abate.

The jobs data tops the list of important economic news in the week ahead, particularly after a string of disappointing reports showing that both consumers and businesses have pulled back.

The stock market will pass a major milestone on Wednesday—the tenth anniversary of the day the market bottomed in 2009, when the S&P 500 hit 666. The S&P has gained more than 312 percent since that low of the financial crisis, and some analysts see the bull market continuing for at least another year.

“We think there’s further upside for this bull market to go. The age of the bull does not matter. What really matters is how healthy it is,” said Patrick Palfrey, U.S. equity strategist at Credit Suisse. “Whatever the concerns, around trade tariffs, or decelerating corporate profits, we believe this bull market remains very healthy.”

The S&P 500 is taking aim at the 2,800 level, an important milestone that it has struggled to surpass in the past week. The 2,800 marker was an important level for the stock market four times in past several months, and holding above it could signal the rally could drive stocks to fresh highs.

Palfrey said investors first and foremost are looking at any information that can help them gauge how the economy is doing. “We’re looking for confirmation in the jobs report. We think the economy is doing okay. Labor participation is improving. We’re going to see that continuing to inch back up,” he said.

The Citigroup economic surprise index fell to a new 18-month low Friday, following a recent rash of disappointing reports. When economic reports come in below economists’ expectations, the surprise index falls and a low number for the index is reflecting the economic slowdown.

Source: Citigroup

Goldman Sachs economists Friday said they were expecting first quarter growth of just 0.9 percent, but they raised second quarter growth to 2.9 percent.


Company: cnbc, Activity: cnbc, Date: 2019-03-01  Authors: patti domm, bryan r smith
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Deutsche Bank reportedly considered restructuring Trump’s loans on worries he might default

Deutsche Bank officials were worried enough that President Donald Trump might default on loans after he was elected that the institution considered extending the repayment dates, according to a Bloomberg News report Wednesday. The Trump Organization had about $340 million in outstanding loans that were to come due in 2023 and 2024, or potentially in the president’s second term should he win re-election in 2020. Bank officials worried about the optics of collecting from a sitting president, so th


Deutsche Bank officials were worried enough that President Donald Trump might default on loans after he was elected that the institution considered extending the repayment dates, according to a Bloomberg News report Wednesday. The Trump Organization had about $340 million in outstanding loans that were to come due in 2023 and 2024, or potentially in the president’s second term should he win re-election in 2020. Bank officials worried about the optics of collecting from a sitting president, so th
Deutsche Bank reportedly considered restructuring Trump’s loans on worries he might default Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox, mandel ngan, afp, getty images
Keywords: news, cnbc, companies, deutsche, default, president, report, loans, reportedly, considered, win, dates, bank, officials, trump, restructuring, worries, trumps, worried


Deutsche Bank reportedly considered restructuring Trump's loans on worries he might default

Deutsche Bank officials were worried enough that President Donald Trump might default on loans after he was elected that the institution considered extending the repayment dates, according to a Bloomberg News report Wednesday.

The Trump Organization had about $340 million in outstanding loans that were to come due in 2023 and 2024, or potentially in the president’s second term should he win re-election in 2020. Bank officials worried about the optics of collecting from a sitting president, so they considered pushing out the due dates to 2025, the report said.

Ultimately, the bank apparently decided against taking actions for reasons that are not clear, opting instead to not do any additional business with Trump.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox, mandel ngan, afp, getty images
Keywords: news, cnbc, companies, deutsche, default, president, report, loans, reportedly, considered, win, dates, bank, officials, trump, restructuring, worries, trumps, worried


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Deutsche Bank reportedly considered restructuring Trump’s loans on worries he might default

Deutsche Bank officials were worried enough that President Donald Trump might default on loans after he was elected that the institution considered extending the repayment dates, according to a Bloomberg News report Wednesday. The Trump Organization had about $340 million in outstanding loans that were to come due in 2023 and 2024, or potentially in the president’s second term should he win re-election in 2020. Bank officials worried about the optics of collecting from a sitting president, so th


Deutsche Bank officials were worried enough that President Donald Trump might default on loans after he was elected that the institution considered extending the repayment dates, according to a Bloomberg News report Wednesday. The Trump Organization had about $340 million in outstanding loans that were to come due in 2023 and 2024, or potentially in the president’s second term should he win re-election in 2020. Bank officials worried about the optics of collecting from a sitting president, so th
Deutsche Bank reportedly considered restructuring Trump’s loans on worries he might default Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox, toni l sandys, the washington post, getty images, mandel ngan, afp
Keywords: news, cnbc, companies, considered, bank, dates, trump, default, officials, report, win, trumps, loans, worried, president, worries, reportedly, deutsche, restructuring


Deutsche Bank reportedly considered restructuring Trump's loans on worries he might default

Deutsche Bank officials were worried enough that President Donald Trump might default on loans after he was elected that the institution considered extending the repayment dates, according to a Bloomberg News report Wednesday.

The Trump Organization had about $340 million in outstanding loans that were to come due in 2023 and 2024, or potentially in the president’s second term should he win re-election in 2020. Bank officials worried about the optics of collecting from a sitting president, so they considered pushing out the due dates to 2025, the report said.

Ultimately, the bank apparently decided against taking actions for reasons that are not clear, opting instead to not do any additional business with Trump.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: jeff cox, toni l sandys, the washington post, getty images, mandel ngan, afp
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Facebook’s Sean Parker says Amazon is not guaranteeing you any privacy

Sean Parker, founding president of Facebook, worries more about Amazon violating your privacy than Facebook. “If you’re having a conversation in front of an Alexa-enabled device, Amazon is not guaranteeing you any privacy,” Parker said in a discussion on stage with CNBC’s Hadley Gamble at the Milken Institute MENA Summit. A spokesperson for Amazon was not immediately available to comment when contacted by CNBC. Amazon came under fire last year when an Echo device reportedly secretly recorded a f


Sean Parker, founding president of Facebook, worries more about Amazon violating your privacy than Facebook. “If you’re having a conversation in front of an Alexa-enabled device, Amazon is not guaranteeing you any privacy,” Parker said in a discussion on stage with CNBC’s Hadley Gamble at the Milken Institute MENA Summit. A spokesperson for Amazon was not immediately available to comment when contacted by CNBC. Amazon came under fire last year when an Echo device reportedly secretly recorded a f
Facebook’s Sean Parker says Amazon is not guaranteeing you any privacy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: elizabeth schulze
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Facebook's Sean Parker says Amazon is not guaranteeing you any privacy

Sean Parker, founding president of Facebook, worries more about Amazon violating your privacy than Facebook.

Parker said on Wednesday there is “no limit” to how Amazon is storing and listening to private conversations, adding that these recordings “could potentially be used against you in a court of law or for other purposes.”

“If you’re having a conversation in front of an Alexa-enabled device, Amazon is not guaranteeing you any privacy,” Parker said in a discussion on stage with CNBC’s Hadley Gamble at the Milken Institute MENA Summit.

A spokesperson for Amazon was not immediately available to comment when contacted by CNBC.

Amazon came under fire last year when an Echo device reportedly secretly recorded a family’s conversation and sent it to a random person. Amazon blamed the incident on Alexa misinterpreting a set of commands.

Speaking to CNBC last month, Amazon’s VP of Voice Pete Thompson said that his company was taking security and data privacy extremely seriously.

“Even when we put Alexa into our partner products that’s something that we mandate of how they can do, how they can use this stuff. Obviously it is early days on how voice works and some of the biggest challenges is when you speak to it hands free, and you are talking to it from a distance. We try very hard to tune it, to make sure we’ve only heard ‘Alexa’ and then that’s when it wakes up .. we have to keep improving that,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: elizabeth schulze
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Trade friction, growth worries keep dollar near 2019 highs

The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal. “The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore. The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The single currency was relatively un


The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal. “The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore. The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The single currency was relatively un
Trade friction, growth worries keep dollar near 2019 highs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: matt cardy, getty images
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Trade friction, growth worries keep dollar near 2019 highs

The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal.

Investors are focusing on high level trade talks in China this week where Washington is expected to keep pressing Beijing on long-standing demands that it make sweeping structural reforms to protect American companies’ intellectual property, to end policies aimed at forcing the transfer of technology to Chinese companies, and curb industrial subsidies.

“The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore.

“Beyond its safe haven appeal, the dollar is still the highest-yielding currency in the developed world and with all major central banks turning dovish, the greenback seems relatively attractive.”

This week’s talks come as the world’s two largest economies try to hammer out a deal before a March 1 deadline, after which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.

Financial markets have been roiled by the trade tensions over the past year, with business sentiment taking a hit around the world as the fallout of the .S.-China dispute disrupted factory activity and hurt global growth.

The greenback rose 0.1 percent against the yen to 110.47 and was a touch higher versus the Swiss franc at 1.0040.

The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The index has risen for eight straight sessions, mainly thanks to a tumbling euro, which has the largest weighting in the index.

The single currency was relatively unchanged at $1.1278 in Asian trade, having lost nearly half a percent on Monday. The euro has weakened for six consecutive sessions, and traders expect further losses now that the crucial psychological support of $1.13 has been broken.

“The next level of support for EUR/USD is the November low of 1.1215 which should be tested quickly,” said Kathy Lien, managing director of currency strategy at BK Asset Management.

The European Central Bank is expected to maintain a highly accommodative monetary policy this year as growth slows in the euro zone and inflation stays low. Last week, the European Commission sharply cut its forecasts for euro zone growth for this year and next.

Investors are expecting stimulus from the ECB in the form of a cheap loan scheme for banks in the coming months.

Elsewhere, sterling was 0.15 percent firmer at $1.2869, after tumbling 0.75 percent in the previous session. Analysts expect the British pound to remain volatile due to the uncertainty surrounding Brexit.

The British parliament is set to hold a debate on Brexit on Feb. 14 where Prime Minister Theresa May is seeking changes to her deal with Brussels after it was rejected by a record majority in parliament last month.

The Australian dollar, often considered a gauge of global risk appetite, gained around 0.3 percent to $0.7083 as risk sentiment improved on expectations that U.S. lawmakers had reached a tentative deal on border security funding that would avert another partial government shutdown due to start on Saturday.

Traders expect the Aussie to remain under pressure after Reserve Bank of Australia Governor Philip Lowe tempered a long-held tightening bias last week, saying an easing might be just as likely as a hike.

The kiwi dollar was steady at $0.6730. New Zealand’s central bank is expected to leave interest rates unchanged at its policy meeting on Wednesday but may adopt a more dovish tone and cut forecasts, in line with other major central banks as rising global economic risks cloud the outlook.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: matt cardy, getty images
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UK 2018 economic growth weakest since 2012, as Brexit and global worries weigh

For 2018 as a whole, growth dropped to its lowest since 2012 at 1.4 percent, down from 1.8 percent in 2017. Exports suffered from global weakness and consumers and businesses grew increasingly concerned about the lack of a plan for when Britain is due to leave the European Union on March 29. Last week the BoE chopped its forecast for growth this year by 0.5 percentage points to 1.2 percent, which would be the weakest year since the 2009 recession. The final months of 2018 saw concerns about a gl


For 2018 as a whole, growth dropped to its lowest since 2012 at 1.4 percent, down from 1.8 percent in 2017. Exports suffered from global weakness and consumers and businesses grew increasingly concerned about the lack of a plan for when Britain is due to leave the European Union on March 29. Last week the BoE chopped its forecast for growth this year by 0.5 percentage points to 1.2 percent, which would be the weakest year since the 2009 recession. The final months of 2018 saw concerns about a gl
UK 2018 economic growth weakest since 2012, as Brexit and global worries weigh Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: bloomberg, getty images
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UK 2018 economic growth weakest since 2012, as Brexit and global worries weigh

“GDP slowed in the last three months of the year with the manufacturing of cars and steel products seeing steep falls and construction also declining,” ONS statistician Rob Kent-Smith said.

For 2018 as a whole, growth dropped to its lowest since 2012 at 1.4 percent, down from 1.8 percent in 2017. Exports suffered from global weakness and consumers and businesses grew increasingly concerned about the lack of a plan for when Britain is due to leave the European Union on March 29.

Last week the BoE chopped its forecast for growth this year by 0.5 percentage points to 1.2 percent, which would be the weakest year since the 2009 recession.

The final months of 2018 saw concerns about a global slowdown hurt growth across major economies, due in part to trade tensions between the United States and China, and Brexit has remained an added challenge for Britain.

Monday’s data showed net trade lopped more than 0.1 percentage points from the fourth quarter growth rate. Falling business investment did similar damage.

Looking at December alone, the economy contracted by 0.4 percent, the biggest fall since March 2016.

Less than seven weeks before Britain is due to leave the EU, Prime Minister Theresa May has so far failed to win parliament’s backing for the plan she agreed with Brussels to avoid reimposing checks on goods exported from Britain.


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: bloomberg, getty images
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Dollar near six-week highs as trade, growth worries ramp up

The dollar rose against most other currencies on Monday, holding near a six-week high as fresh worries about U.S.-Sino trade tensions and global growth drove appetite for safe-haven assets. “The Aussie dollar and the euro are at vulnerable levels right now and further dampening in risk sentiment can lead to further downside in these currencies.” Trade tensions between the world’s two largest economies have been a major driver of global investor sentiment over the past year. The strength in the d


The dollar rose against most other currencies on Monday, holding near a six-week high as fresh worries about U.S.-Sino trade tensions and global growth drove appetite for safe-haven assets. “The Aussie dollar and the euro are at vulnerable levels right now and further dampening in risk sentiment can lead to further downside in these currencies.” Trade tensions between the world’s two largest economies have been a major driver of global investor sentiment over the past year. The strength in the d
Dollar near six-week highs as trade, growth worries ramp up Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: dan kitwood, getty images
Keywords: news, cnbc, companies, trade, highs, sentiment, sixweek, near, global, versus, tensions, chinese, ramp, euro, worries, dollar, growth, yields, week


Dollar near six-week highs as trade, growth worries ramp up

The dollar rose against most other currencies on Monday, holding near a six-week high as fresh worries about U.S.-Sino trade tensions and global growth drove appetite for safe-haven assets.

“U.S.-China talks are the big focus for the week and the dollar strength is indicative of the cautious market sentiment right now owing to its safe-haven status,” said Nick Twidale, chief operating officer at Rakuten Securities.

“The Aussie dollar and the euro are at vulnerable levels right now and further dampening in risk sentiment can lead to further downside in these currencies.”

U.S. negotiators will this week press China on longstanding demands that it reform how it treats U.S. companies’ intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports.

The dollar gained 0.1 percent versus the yen to 109.82. However, traders expect moves in dollar/yen to be small on Monday as Japanese markets remain shut for a public holiday.

The dollar index, a gauge of its value versus six major peers, was marginally higher at 96.64, on track for its eighth straight day of gains.

Trade tensions between the world’s two largest economies have been a major driver of global investor sentiment over the past year. Market confidence took a hit last week when U.S. President Donald Trump said he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal.

Trump has vowed to increase U.S. tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent currently if the two sides cannot reach a deal by March 2.

The euro was marginally lower versus the greenback at $1.1322 in early Asian trade while the Aussie was 0.15 percent higher at $0.7099, after a disastrous week in which it lost 2.2 percent.

The strength in the dollar has come despite the Federal Reserve taking a dovish stance at its last policy meeting in January. For now, investors are piling into the safety of the greenback due to fears of a sharp global economic slowdown.

The euro came under pressure as core European government debt yields touched their lowest in over two years. The single currency has lost 2.5 percent so far this month.

Benchmark German yields were just 10 basis points away from zero percent.

The European Commission sharply cut on Thursday its forecasts for euro zone economic growth for this year and next with the bloc’s largest economies expected to be held back by global trade tensions and domestic challenges.

Last month, the International Monetary Fund also downgraded its forecasts for global growth.

Elsewhere, sterling was down 0.1 percent at $1.2935. Traders expect the pound to remain volatile amid heightened political uncertainty over the Brexit process.


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: dan kitwood, getty images
Keywords: news, cnbc, companies, trade, highs, sentiment, sixweek, near, global, versus, tensions, chinese, ramp, euro, worries, dollar, growth, yields, week


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