Bank stocks were the ‘worst performers’ after Apple’s coronavirus warning, Jim Cramer says

The bank stocks ironically got the shortest end of the stick on Apple’s coronavirus warning that rattled Wall Street, CNBC’s Jim Cramer said Tuesday. “The worst performers — ones that there was no news whatsoever — [were] the banks,” the “Mad Money” host said. Because of a sudden drop in interest rates caused by a worldwide slowdown that could get into a full-blown recession. Interest rates fall when demand for U.S. Treasuries goes up. The SPDR S&P Bank ETF (KBE), which tracks bank stocks, also


The bank stocks ironically got the shortest end of the stick on Apple’s coronavirus warning that rattled Wall Street, CNBC’s Jim Cramer said Tuesday.
“The worst performers — ones that there was no news whatsoever — [were] the banks,” the “Mad Money” host said.
Because of a sudden drop in interest rates caused by a worldwide slowdown that could get into a full-blown recession.
Interest rates fall when demand for U.S. Treasuries goes up.
The SPDR S&P Bank ETF (KBE), which tracks bank stocks, also
Bank stocks were the ‘worst performers’ after Apple’s coronavirus warning, Jim Cramer says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: tyler clifford
Keywords: news, cnbc, companies, apples, warning, jim, interest, market, performers, worst, slowdown, bank, cramer, yield, coronavirus, banks, stocks, rates


Bank stocks were the 'worst performers' after Apple's coronavirus warning, Jim Cramer says

The bank stocks ironically got the shortest end of the stick on Apple’s coronavirus warning that rattled Wall Street, CNBC’s Jim Cramer said Tuesday.

The stocks of J.P. Morgan Chase and Citigroup declined more than 1%, one day after the iPhone maker’s market-moving announcement that the outbreak of the coronavirus, known as COVID-19, would lead to a revenue shortfall.

“The worst performers — ones that there was no news whatsoever — [were] the banks,” the “Mad Money” host said. “Why? Because of a sudden drop in interest rates caused by a worldwide slowdown that could get into a full-blown recession. The banks do better in a rising interest rate environment, not a lower one.”

Institutional investors move cash from the riskier stock market to the safer bond market when they are concerned about an economic slowdown. Interest rates fall when demand for U.S. Treasuries goes up.

The yield on the U.S. 10-year treasury, which banks use to calculate mortgage rates, was down about 2 basis points late Tuesday. The SPDR S&P Bank ETF (KBE), which tracks bank stocks, also fell 1.3% in the session.


Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: tyler clifford
Keywords: news, cnbc, companies, apples, warning, jim, interest, market, performers, worst, slowdown, bank, cramer, yield, coronavirus, banks, stocks, rates


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

‘Chernobyl-like’ response by China means ‘worst is yet to come’ for coronavirus, Raymond James says

As the coronavirus outbreak rages on, Raymond James said China’s delayed response is inciting comparisons to the Soviet Union’s response to the Chernobyl nuclear disaster, and that things could get worse in terms of economic and market impact. Raymond James said that following conversations with government officials and academics, it believes the “worst is yet to come” and that the “market is underappreciating the potential dangers and what the key government leaders on the virus are saying.” Th


As the coronavirus outbreak rages on, Raymond James said China’s delayed response is inciting comparisons to the Soviet Union’s response to the Chernobyl nuclear disaster, and that things could get worse in terms of economic and market impact.
Raymond James said that following conversations with government officials and academics, it believes the “worst is yet to come” and that the “market is underappreciating the potential dangers and what the key government leaders on the virus are saying.”
Th
‘Chernobyl-like’ response by China means ‘worst is yet to come’ for coronavirus, Raymond James says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: pippa stevens
Keywords: news, cnbc, companies, impact, coronavirus, china, soviet, nuclear, worst, market, means, come, james, response, chinese, virus, raymond, chernobyllike, disaster


'Chernobyl-like' response by China means 'worst is yet to come' for coronavirus, Raymond James says

As the coronavirus outbreak rages on, Raymond James said China’s delayed response is inciting comparisons to the Soviet Union’s response to the Chernobyl nuclear disaster, and that things could get worse in terms of economic and market impact. China’s “slow reaction and continued unanswered questions appear to be sowing real concerns among the Chinese people,” wrote a team of Raymond James analysts led by Chris Meekins in a note to clients, which is amplifying concerns over General Secretary Xi and the Chinese Communist Party’s grip on power. The firm said it has been “receiving questions on whether or not this will be a ‘Chernobyl-like’ event for China — the comparison being the impact of the Chernobyl nuclear power plant disaster on the fall of the Soviet Union.”

Raymond James said that following conversations with government officials and academics, it believes the “worst is yet to come” and that the “market is underappreciating the potential dangers and what the key government leaders on the virus are saying.” The Chernobyl disaster, which occurred on April 26, 1986, was a nuclear accident that released massive amounts of radioactive material into the air. Soviet authorities were criticized for their slow response. “If this virus becomes a true global pandemic, the actions by the Chinese leadership will come under great fire as they no doubt contributed to the spread,” Raymond James said, before adding that “the real impact will likely take years to fully measure.”

As of Feb. 17, the Chinese government said a total of 72,436 people are confirmed to have had the disease while 1,868 people have died. The stock market, however, has recovered all of its coronavirus-induced drop and then some, with stocks surging to record highs last week. But the market retreated on Tuesday with shares of Apple sliding more than 2%. The company said it would miss its quarterly revenue forecast thanks to constrained worldwide supply of iPhones, as well as lower Chinese demand stemming from the virus outbreak. And Apple is just one of a number of companies that have cited the virus as a headwind for the current quarter, with many noting that it’s still too early to tell how much of an impact the virus will have.

A health worker measures the body temperature of a person during the heavy snowfall amid coronavirus fears. Coronavirus (COVID-19) has killed more than 1,500 people in China and infected more than 66,000 people. SOPA Images | Getty Images


Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: pippa stevens
Keywords: news, cnbc, companies, impact, coronavirus, china, soviet, nuclear, worst, market, means, come, james, response, chinese, virus, raymond, chernobyllike, disaster


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

A huge driver of stock prices got off to its worst start in 7 years, but that could change

Despite a considerable bout of volatility, the market nonetheless had a solid January, rising about 1.2%. Still, the weak buyback start is cause for some concern. One positive is that February thus far has seen a much stronger appetite for share buybacks, with $34 billion announced through Feb. 14. Diver sees a chance that some companies may have been holding off in January before announcing buybacks and may start ramping them up as opportunity presents itself. In the February survey, 42% of pro


Despite a considerable bout of volatility, the market nonetheless had a solid January, rising about 1.2%.
Still, the weak buyback start is cause for some concern.
One positive is that February thus far has seen a much stronger appetite for share buybacks, with $34 billion announced through Feb. 14.
Diver sees a chance that some companies may have been holding off in January before announcing buybacks and may start ramping them up as opportunity presents itself.
In the February survey, 42% of pro
A huge driver of stock prices got off to its worst start in 7 years, but that could change Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: jeff cox
Keywords: news, cnbc, companies, huge, driver, repurchases, trillion, buyback, stock, change, prices, worst, start, buybacks, billion, companies, market, nearly, weak


A huge driver of stock prices got off to its worst start in 7 years, but that could change

Share buybacks, one of the key building blocks for the nearly 11-year bull market run, have gotten off to a slow start in 2020 that, if sustained, could pose a threat to the Wall Street rally. Companies in January announced just $13.7 billion of repurchases, the slowest opener since 2013 and coming off a 2019 that saw a 30% drop-off from the previous year, according to AllianceBernstein. Despite a considerable bout of volatility, the market nonetheless had a solid January, rising about 1.2%. Still, the weak buyback start is cause for some concern. “If this is a sign of a much lower run rate of buybacks it would be worrying given how dependent the market is on corporate buying of equities,” AB strategist Mark Diver said in a note. “We do not think this is the case.”

One positive is that February thus far has seen a much stronger appetite for share buybacks, with $34 billion announced through Feb. 14. Diver sees a chance that some companies may have been holding off in January before announcing buybacks and may start ramping them up as opportunity presents itself. “Companies with large buyback programs are perhaps becoming more discerning in the timing of execution of their buyback programs and maybe delaying repurchases until a more attractive entry point presents itself,” he wrote, adding that, “This seems plausible to us and at least a partial explanation of the weak data in January.”

The trend comes after a solid $700 billion year for repurchases. That was down from the $1 trillion in 2018, though that figure may have been inflated due to the repatriation incentive in the 2017 tax cut bill. Moreover, the previous two years show that buybacks are no guarantee for market success: The $1 trillion was for naught in a year that saw the S&P 500 lose nearly 7%, while last year’s seeming decline coincided with a robust nearly 30% rise in the large-cap index.

Conflict over buybacks

There’s also conflicting sentiment in the market regarding the efficacy of buybacks. Fund managers in the monthly Bank of America survey continually say they’d rather see corporate cash devoted to capital expenditures and paying down debt. In the February survey, 42% of professional investors say they want want money spent on rebuilding balance sheets, while 40% said capex. Just 15% advocated returning money to shareholders through buybacks and dividends.


Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: jeff cox
Keywords: news, cnbc, companies, huge, driver, repurchases, trillion, buyback, stock, change, prices, worst, start, buybacks, billion, companies, market, nearly, weak


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Apparel sales just had their worst month in more than 10 years. Here’s why

Receipts at clothing stores dropped 3.1% last month, the most since March 2009, the Commerce Department said Friday. A slew of retailers had already issued their holiday sales results, for November and December, citing weakness in apparel specifically. “It doesn’t surprise me that apparel is struggling,” Retail Metrics founder Ken Perkins said. Retail earnings for the holiday quarter are just kicking off, with Walmart set to report Tuesday morning. And companies ranging from Ralph Lauren to Unde


Receipts at clothing stores dropped 3.1% last month, the most since March 2009, the Commerce Department said Friday.
A slew of retailers had already issued their holiday sales results, for November and December, citing weakness in apparel specifically.
“It doesn’t surprise me that apparel is struggling,” Retail Metrics founder Ken Perkins said.
Retail earnings for the holiday quarter are just kicking off, with Walmart set to report Tuesday morning.
And companies ranging from Ralph Lauren to Unde
Apparel sales just had their worst month in more than 10 years. Here’s why Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: lauren thomas
Keywords: news, cnbc, companies, stores, buying, earnings, companies, heres, perkins, month, retailers, apparel, worst, sales, retail, clothing


Apparel sales just had their worst month in more than 10 years. Here's why

A woman shops for clothing at the JC Penney Co. store inside the Roosevelt Field Mall in Garden City, New York.

The apparel industry had a really tough start to 2020, as consumers are buying fewer and fewer items to stock their closets, and companies that typically sell tons of winter coats and sweaters tried to cope with the second-warmest January in the past 29 years.

Receipts at clothing stores dropped 3.1% last month, the most since March 2009, the Commerce Department said Friday.

“The consumer is clearly not prioritizing buying products, but a lot of this is down to unfavorable ranges, boredom with buying and some unfavorable weather: It is not the result of economic malaise or a lack of spending power,” GlobalData Retail Managing Director Neil Saunders said.

A slew of retailers had already issued their holiday sales results, for November and December, citing weakness in apparel specifically.

Kohl’s had said women’s apparel was its weakest category during the holidays. J.C. Penney and Macy’s also both had disappointing holidays, and they have both since said they are reworking some of their private-label apparel brands in a bid to win back shoppers.

Many retailers were seen discounting clothing in stores after Christmas. Many had assortments of tops, dresses and pants in stores that were uninspiring, analysts said.

All told, the disappointing January sales data shouldn’t come as a shock.

“It doesn’t surprise me that apparel is struggling,” Retail Metrics founder Ken Perkins said. “Look at where the earnings [for the group] have been. … They’re expected to be down 2% in the fourth quarter.”

“I think this is the new normal,” Perkins added. “Baby boomers are aging and buying less clothing than they used to. And I don’t think millennials are inclined to spend as much on their wardrobes.”

Instead, new options like Rent the Runway — where users can pay a monthly fee to rent items to wear to work, to the gym, on vacation and on the weekends — and Stitch Fix — where customers pay to have personalized boxes of clothes shipped to them — are gaining in popularity.

The so-called casualization of the workplace also means women and men aren’t buying expensive suits and skirts to wear around the office. Instead, many can get by with jeans and jogger pants.

“I don’t see that changing anytime soon,” Perkins said about more people going casual.

Second-hand apparel is also in style, as shoppers are increasingly thinking about how they can create less waste when they shop. Companies including The Real Real, thredUP and Poshmark are platforms where people can browse and buy used clothing.

And one can’t forget the record-hot January, which put a damper on sales of cold-weather gear. It was the second-warmest January in the U.S. in the past 29 years, Wells Fargo analyst Zachary Fadem said, citing commentary from other retailers. Globally, it was the warmest January on record.

Retail earnings for the holiday quarter are just kicking off, with Walmart set to report Tuesday morning. And that should offer a clearer look at where categories like apparel, electronics, home goods, beauty and grocery are trending into 2020. Earnings reports from Macy’s, Gap, L Brands and others will follow in the coming days.

Department store chains and clothing shops are expected to have the biggest earnings slowdowns during the fourth quarter, according to data pulled by Refinitiv.

Also top of mind for many retailers now is the deadly coronavirus, which is already impacting sourcing, manufacturing and deliveries in China. And companies ranging from Ralph Lauren to Under Armour have already said they expect sales to take a hit because of the outbreak.

The S&P 500 Retail ETF was down about 0.4% Friday afternoon. It is down about 2.7% for the year.


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: lauren thomas
Keywords: news, cnbc, companies, stores, buying, earnings, companies, heres, perkins, month, retailers, apparel, worst, sales, retail, clothing


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Stocks expected to rise even as virus creates volatility: ‘The market thinks the worst is over’

“It does feel as though the market thinks the worst is over,” said Ed Keon, chief investment strategist at QMA. Nvidia said it would take a $100 million hit from the virus, but its revenue forecast was still above expectations. Resilient marketEven with the negative news and doubts about the virus, analysts say the market has the momentum to move higher. But Robert Sluymer, technical analyst with Fundstrat, said the market may stay range bound for awhile until there’s more clarity on the virus.


“It does feel as though the market thinks the worst is over,” said Ed Keon, chief investment strategist at QMA.
Nvidia said it would take a $100 million hit from the virus, but its revenue forecast was still above expectations.
Resilient marketEven with the negative news and doubts about the virus, analysts say the market has the momentum to move higher.
But Robert Sluymer, technical analyst with Fundstrat, said the market may stay range bound for awhile until there’s more clarity on the virus.

Stocks expected to rise even as virus creates volatility: ‘The market thinks the worst is over’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: patti domm
Keywords: news, cnbc, companies, stocks, virus, expected, creates, higher, quarter, work, hit, market, volatility, companies, range, fed, rise, think, thinks, worst


Stocks expected to rise even as virus creates volatility: 'The market thinks the worst is over'

Traders work on the floor at the New York Stock Exchange. Brendan McDermid | Reuters

Stocks are likely to remain hostage to developments involving the coronavirus in the week ahead, and even so, the market could continue to hit new highs. Economists have been reducing China’s growth outlook for the quarter, with some seeing little or no growth and then a bounce back in the high single digits next quarter. The U.S. economy is not expected to take a big hit, but the question for the stock market is how will corporate earnings be impacted. “It does feel as though the market thinks the worst is over,” said Ed Keon, chief investment strategist at QMA. “The pace of change is slowing. None of us really know, and there’s a lot of skepticism, including in Washington that they can’t believe what’s coming out of China.”

Keon believes the market looks poised to head higher and it is trading as if the virus will not make a big dent in the economy or profits. “The market didn’t really get much of a drawback, compared to SARS or other episodes. There’s no doubt he world will suffer a hit over the first and second quarter and maybe longer,” he said. Companies reporting earnings in the coming week include Walmart Tuesday; ViacomCBS Thursday, and Deere on Friday. Hyatt Hotels reports Wednesday, and Norwegian Cruise Lines reports Thursday. Economic releases include Tuesday’s Empire State and Thursday’s Philadelphia Fed manufacturing surveys, as well as Markit PMI on Friday. There are also a parade of Fed speakers, including Vice Chairman Richard Clarida, Fed Governor Lael Brainard and Dallas Fed President Robert Kaplan.

Profit warnings

Some companies are already raising warnings, like Cisco which said orders were down and that the forward-looking numbers were not factoring in potential supply chain disruptions. Nvidia said it would take a $100 million hit from the virus, but its revenue forecast was still above expectations. Under Armour said its sales will be impacted by the virus, when it projected disappointing revenue growth this week. Estee Lauder said its sales will be hit by a decline in travel-related luxury sales. “This is going to start to show up because it will affect supply chains” and exporters, said Keon. “It will have a negative impact. But at the moment, at least, it doesn’t look like it will be a huge deal to companies in the U.S…It will be a factor. The question is, is it a lasting factor that will hurt them through the year, or is it a quarter or two and then gets back to normal. None of us know.”

About 64,000 people, mostly in China, have been infected and about 1,400 have died from the virus. Barry Knapp, Ironsides Macroeconomics director of research, said he sees only a minor impact on U.S. corporate earnings. “There will be some hits in some of the consumer companies that have reasonably big businesses in China. I see this as being a fairly small effect on the U.S.,” Knapp said. He said the disruption to the supply chain should not be nearly as bad as it was when Japan was hit by a tsunami and earthquake in 2011. He expects stocks to continue to move higher, ending the year higher, but he says the market could run into turbulence in the spring when the Fed discusses cutting back its purchases of Treasury bills. For now, the Fed asset purchases, a strong U.S. consumer and the positive benefit to business spending from the trade deal should help drive stocks higher. But by April or May, the Fed could become a negative. “Could we go up another 3 or 4% between now and then? Sure, we could,” he said. Knapp said since World War II, market corrections fanned by Fed policy changes have resulted in brief pullbacks, averaging about 8%. He said the market should then rebound. “It trades in a range for a quarter or two and then resumes its uptrend,” he said, noting the uptrend could coincide with the presidential election this year.

Resilient market

Even with the negative news and doubts about the virus, analysts say the market has the momentum to move higher. But Robert Sluymer, technical analyst with Fundstrat, said the market may stay range bound for awhile until there’s more clarity on the virus. “I had a 3,340 to 3,360 [on the S&P 500] as the point where the market starts to consolidate, and we’re there,” said Sluymer. “I don’t have a year-end target but I think it’s higher. I think we’re in a sloppy range. I think it’s range bound.” But Sluymer also said he thinks the market is just pausing. “Stocks are consolidating above support. The market is acting incredibly resilient and it still looks like an intermediate term pause, a consolidation,” he said. Keon said he’s looking for more gains though the market will continue to be swung by virus-related headlines. “I think it’s going to work its way higher, not at the pace you saw last year. But that’s the way we have our portfolios positioned — the market will work its way higher this year,” he said.

Week ahead calendar


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: patti domm
Keywords: news, cnbc, companies, stocks, virus, expected, creates, higher, quarter, work, hit, market, volatility, companies, range, fed, rise, think, thinks, worst


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gold inches up on virus concerns; set for worst week since early Nov

An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. Gold prices edged higher on Friday as fears over a rapidly spreading coronavirus outbreak and its economic impact fueled safe-haven buying. Spot gold was up 0.1% to $1,568.76 per ounce by 0052 GMT. The metal has fallen 1.3% so far this week, heading for its worst week since Nov. 8. Palladium advanced 0.4% to $2,355.36 an ounce, silver rose 0.1% to $17.83, and plati


An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt.
Gold prices edged higher on Friday as fears over a rapidly spreading coronavirus outbreak and its economic impact fueled safe-haven buying.
Spot gold was up 0.1% to $1,568.76 per ounce by 0052 GMT.
The metal has fallen 1.3% so far this week, heading for its worst week since Nov. 8.
Palladium advanced 0.4% to $2,355.36 an ounce, silver rose 0.1% to $17.83, and plati
Gold inches up on virus concerns; set for worst week since early Nov Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-07
Keywords: news, cnbc, companies, inches, edged, set, nov, higher, gold, previous, outbreak, ounce, economic, concerns, weekly, week, early, virus, worst


Gold inches up on virus concerns; set for worst week since early Nov

An Argor-Heraeus SA branded two hundred and fifty gram gold bar, center, sits in this arranged photograph at Solar Capital Gold Zrt. in Budapest, Hungary.

Gold prices edged higher on Friday as fears over a rapidly spreading coronavirus outbreak and its economic impact fueled safe-haven buying.

However, China’s move to cut tariffs on some U.S. imports that sent global stock markets higher in the previous session weighed on bullion prices.

Spot gold was up 0.1% to $1,568.76 per ounce by 0052 GMT. The metal has fallen 1.3% so far this week, heading for its worst week since Nov. 8. U.S. gold futures were flat at $1,570.70.

The death toll from the coronavirus outbreak in mainland China reached 636 by the end of Thursday, up 73 from the previous day, the National Health Commission said.

Asian shares eased as investors remained jittery about the widespread virus outbreak.

Beijing said it would lower extra levies imposed last year on 1,717 U.S. products, weeks after the signing of a Phase 1 trade deal that brought a truce to a bruising tariff dispute between the world’s two largest economies.

The dollar was on track for its best weekly gain since early November, amid upbeat economic indicators ahead of the U.S. non-farm payrolls data.

U.S. weekly jobless claims hit a nine-month low as the number of Americans filing for unemployment benefits dropped to 202,000 last week, while productivity rebounded in the fourth quarter.

U.S. Federal Reserve Vice Chair Randal Quarles said policymakers should consider changes that would make it easier for banks to treat Treasury holdings as similar to reserves held with the central bank when meeting liquidity requirements.

Two illegal Zimbabwean miners died and another was injured after the gold mine they were working in collapsed, the disaster management agency said on Thursday.

Palladium advanced 0.4% to $2,355.36 an ounce, silver rose 0.1% to $17.83, and platinum edged higher by 0.1% to $962.87.


Company: cnbc, Activity: cnbc, Date: 2020-02-07
Keywords: news, cnbc, companies, inches, edged, set, nov, higher, gold, previous, outbreak, ounce, economic, concerns, weekly, week, early, virus, worst


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Coronavirus outbreak has turned Asia’s best-performing currency into one of the worst

The Thai baht has flipped from Asia’s strongest currency in 2019 to one of the region’s worst performing this year, following an outbreak of a new coronavirus that originated from China. The Thai currency has lost around 4.1% against the U.S. dollar so far this year, reversing almost half of its 7.9% gains against the greenback in 2019. Trinh Nguyen, senior economist at French investment bank Natixis, said on Thursday the second-largest economy in Southeast Asia has been too dependent on externa


The Thai baht has flipped from Asia’s strongest currency in 2019 to one of the region’s worst performing this year, following an outbreak of a new coronavirus that originated from China.
The Thai currency has lost around 4.1% against the U.S. dollar so far this year, reversing almost half of its 7.9% gains against the greenback in 2019.
Trinh Nguyen, senior economist at French investment bank Natixis, said on Thursday the second-largest economy in Southeast Asia has been too dependent on externa
Coronavirus outbreak has turned Asia’s best-performing currency into one of the worst Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-06  Authors: yen nee lee
Keywords: news, cnbc, companies, turned, nguyen, worst, coronavirus, exports, economy, thai, thailand, drag, currency, tourism, asias, outbreak, bank, bestperforming, thailands


Coronavirus outbreak has turned Asia's best-performing currency into one of the worst

The Thai baht has flipped from Asia’s strongest currency in 2019 to one of the region’s worst performing this year, following an outbreak of a new coronavirus that originated from China.

The Thai currency has lost around 4.1% against the U.S. dollar so far this year, reversing almost half of its 7.9% gains against the greenback in 2019.

In a bid to boost the Thai economy, the country’s central bank, the Bank of Thailand, on Wednesday unexpectedly cut its policy rate to an all-time low, and cited the virus spread as one reason that will drag down growth.

Trinh Nguyen, senior economist at French investment bank Natixis, said on Thursday the second-largest economy in Southeast Asia has been too dependent on external demand,” particularly that from China.

Nguyen told CNBC’s “Squawk Box Asia” that tourism revenue from China accounts for around 2.7% of Thailand’s gross domestic product, while exports to China make up some 6% of the country’s GDP.

“We know with absolute certainty that the tourism hit will be there,” she said, adding that exports are also likely to be “another downward drag” on Thailand’s roughly $500 billion economy.

“This is why we slashed GDP forecast to only 2.2% this year and that means that Thailand is very short of the World Bank target of 5% if it wants to reach high income status in about a decade,” said Nguyen.


Company: cnbc, Activity: cnbc, Date: 2020-02-06  Authors: yen nee lee
Keywords: news, cnbc, companies, turned, nguyen, worst, coronavirus, exports, economy, thai, thailand, drag, currency, tourism, asias, outbreak, bank, bestperforming, thailands


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

US futures point to higher open despite coronavirus fears

U.S. stock index futures pointed to a higher open on Monday as Wall Street looks set to shrug off fears over the spread of the novel coronavirus. ET, Dow futures were up by 132 points and implied a positive open of more than 127 points, while futures on the S&P 500 and Nasdaq were also higher. The Dow plunged 600 points on Friday to post its worst day since August. On the data front, the final Markit Manufacturing PMI (Purchasing Managers’ Index) reading for January is due at 9:45 a.m. ET, befor


U.S. stock index futures pointed to a higher open on Monday as Wall Street looks set to shrug off fears over the spread of the novel coronavirus.
ET, Dow futures were up by 132 points and implied a positive open of more than 127 points, while futures on the S&P 500 and Nasdaq were also higher.
The Dow plunged 600 points on Friday to post its worst day since August.
On the data front, the final Markit Manufacturing PMI (Purchasing Managers’ Index) reading for January is due at 9:45 a.m.
ET, befor
US futures point to higher open despite coronavirus fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-03  Authors: elliot smith
Keywords: news, cnbc, companies, despite, open, points, index, set, futures, fears, higher, worst, coronavirus, point, nasdaq, manufacturing


US futures point to higher open despite coronavirus fears

U.S. stock index futures pointed to a higher open on Monday as Wall Street looks set to shrug off fears over the spread of the novel coronavirus.

At around 2:20 a.m. ET, Dow futures were up by 132 points and implied a positive open of more than 127 points, while futures on the S&P 500 and Nasdaq were also higher.

The death toll in China from the coronavirus reached 361 on Sunday, surpassing that of the SARS virus which lasted from 2002 to 2003, while a first death outside of China was reported in the Philippines.

U.S. investors are seemingly looking to buy the dip after the S&P 500 and Nasdaq recorded their worst start to a trading year since 2016, with global markets reeling from concerns over the economic fallout from the outbreak. The Dow plunged 600 points on Friday to post its worst day since August.

Corporate earnings season remains on the agenda, with Sysco among those reporting before the bell on Monday, while Google parent Alphabet is set to report after the close of trade.

On the data front, the final Markit Manufacturing PMI (Purchasing Managers’ Index) reading for January is due at 9:45 a.m. ET, before a range of January ISM manufacturing figures at 10:00 a.m. ET.


Company: cnbc, Activity: cnbc, Date: 2020-02-03  Authors: elliot smith
Keywords: news, cnbc, companies, despite, open, points, index, set, futures, fears, higher, worst, coronavirus, point, nasdaq, manufacturing


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here are the world’s best-value attractions and worst tourist traps

According to a new ranking of worst and best values among the world’s top tourist attractions — and, in some cases, traps — the Burj Khalifa comes in near No. The building fared poorly due to its high entry fee and — despite its storied height — limited views, said a Club Med spokesperson. (Disclosure: CNBC and Universal Parks & Resorts are both subsidiaries of NBCUniversal, owned by parent Comcast.) On a positive note, the best tourist attraction in terms of value for money is the Peterhof Pala


According to a new ranking of worst and best values among the world’s top tourist attractions — and, in some cases, traps — the Burj Khalifa comes in near No.
The building fared poorly due to its high entry fee and — despite its storied height — limited views, said a Club Med spokesperson.
(Disclosure: CNBC and Universal Parks & Resorts are both subsidiaries of NBCUniversal, owned by parent Comcast.)
On a positive note, the best tourist attraction in terms of value for money is the Peterhof Pala
Here are the world’s best-value attractions and worst tourist traps Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-03  Authors: kenneth kiesnoski
Keywords: news, cnbc, companies, value, score, med, universal, theme, traps, worst, best, tourist, club, attractions, parks, bestvalue, worlds


Here are the world's best-value attractions and worst tourist traps

Back in early 2012, I bounded up to the ticket booth at the then-new, 2,722-foot Burj Khalifa in Dubai, hoping to snag a last-minute elevator ride to the top of the world’s tallest skyscraper.

Taking a seven-hour tourist detour from a business stay in neighboring Abu Dhabi, I had little on my to-do list for my quick day trip to the ultra-wealthy Mideast city-state, apart from the view from that iconic building’s 124th floor observation deck.

Much to my disappointment, tickets were sold out for the next few days. I consoled myself with a camel-milk ice cream cone and plaintive window-shopping in the high-end mega-mall at the base of the Burj.

Turns out I might not have missed out on much.

According to a new ranking of worst and best values among the world’s top tourist attractions — and, in some cases, traps — the Burj Khalifa comes in near No. 1 … for disappointment.

More from Personal Finance:

Here are the world’s cheapest and priciest cities

How to pick the best travel rewards credit card

This app makes clearing customs a breeze

The U.K. offices of French resort chain Club Med released the findings of a study of 66 of the globe’s most visited tourist draws, comparing typical entry fees with “social media sentiment” data from Paris research firm Linkfluence to award each site a score from 1 to 10 on value for money.

The Burj, where basic entry fees start at about $40, only scored 5.6 out of 10 points — despite its towering reputation as a must-see. That landed it in the No. 60 spot, out of 66 sites.

The building fared poorly due to its high entry fee and — despite its storied height — limited views, said a Club Med spokesperson.

It was only under-performed for value, according to the study’s metrics, by several theme parks run by Disney Parks, Experiences and Products and Universal Parks & Resorts. (Disclosure: CNBC and Universal Parks & Resorts are both subsidiaries of NBCUniversal, owned by parent Comcast.) It should be noted Club Med does compete with Disney and Universal hotel and resort properties (if not theme parks, per se) in at least one market, central Florida, and for overall vacation spending by tourists.

On a positive note, the best tourist attraction in terms of value for money is the Peterhof Palace outside St. Petersburg, Russia. The ornate, gilded and fountain-laden complex, built by Peter the Great in the 18th century, charges around $19 for entrance and boasts 100% satisfaction from social media users who visit. That earned it a top score of 9.6 out of 10 and a description as “the must-see landmark of 2020” by Club Med.

Other classic international attractions that also rank high for value include the Eiffel Tower, Egypt’s Pyramids, the Colosseum in Rome, the Great Wall of China and the Acropolis in Athens, Greece.

Two U.S. attractions made it into Club Med’s Top 10: Utah’s Great Salt Lake came in at No. 2, with a 9.4 rating, while Rocky Mountain National Park in Colorado made No. 4, racking up 9.2 points. Other American sites deemed good value include Arizona’s Hoover Dam and Grand Canyon, ranked 14th and 19th, respectively; Zion National Park in Utah, at No. 17; and Yosemite National Park in California, coming in at 20th place.

Club Med also broke out the best theme parks worldwide for value. Tivoli Gardens in Copenhagen, Denmark, tops that list with a score of 9.0, but the U.S. is no slouch, either: Six Flags’ Hurricane Harbor Phoenix in Arizona is ranked No. 2, with 100% customer satisfaction, and Fun Spot America in Kissimmee, Florida, came in at No. 5.


Company: cnbc, Activity: cnbc, Date: 2020-02-03  Authors: kenneth kiesnoski
Keywords: news, cnbc, companies, value, score, med, universal, theme, traps, worst, best, tourist, club, attractions, parks, bestvalue, worlds


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s why diversification can be an investor’s worst enemy

Indeed, investment advisors, portfolio strategists, and Nobel laureates in economics have spent enormous amounts of time figuring out the best strategies to reduce investment risk. Let’s agree on when the worst possible time might have been to invest in the U.S. stock market in recent times. For our purposes, we used the S&P 500 as a proxy for the stock market. So, history suggests that the single best way to make a great deal of money is to invest in the stock market for the long term. Here’s w


Indeed, investment advisors, portfolio strategists, and Nobel laureates in economics have spent enormous amounts of time figuring out the best strategies to reduce investment risk.
Let’s agree on when the worst possible time might have been to invest in the U.S. stock market in recent times.
For our purposes, we used the S&P 500 as a proxy for the stock market.
So, history suggests that the single best way to make a great deal of money is to invest in the stock market for the long term.
Here’s w
Here’s why diversification can be an investor’s worst enemy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-02  Authors: peter tanous, lynx investory advisory
Keywords: news, cnbc, companies, investors, investor, heres, does, market, worst, major, index, enemy, diversification, reduce, portfolio, investment, stock, invested


Here's why diversification can be an investor's worst enemy

Traders work on the floor at the New York Stock Exchange, August 13, 2019. Eduardo Munoz | Reuters

Ask your investment advisor: Why do I need to diversify my portfolio? To improve my investment returns? No. The right answer is to reduce risk. Indeed, investment advisors, portfolio strategists, and Nobel laureates in economics have spent enormous amounts of time figuring out the best strategies to reduce investment risk. They’ve all concluded that the best way to do this is by diversifying holdings into different asset classes, like stocks, bonds, gold, hedge funds and other strategies meant to smooth out returns. But does it work? No.

What diversification does is reduce volatility. Diversification does indeed smooth out investment returns, but that’s a psychological decision, not an investment decision. As a result, asset allocation diversification does not help investment performance, it hurts it. For both professional investors and novices, your single biggest fear is being caught in a major stock market decline of 40% or more, which is why portfolio managers and advisers diversify into bonds and other assets to reduce the volatility of the portfolio. Based on a fresh analysis my colleagues and I have made, diversification hurts your long term investment performance big time.

Testing the hypothesis

First point: if we diversify out of fear of a market crash of 40% or more, how often do these occur? Surprisingly, they have occurred only three times in the last 100 years. Is it smart to tailor a portfolio to protect against an event this rare? Some will be quick to point out that since the timing of these major declines is unknown, what happens if they occur close to one another? A fair point since two of the three major meltdowns of the century occurred less than 10 years apart, 2000-2001 and 2008-2009. The third was much earlier, in 1973-1974, so plenty of time to recover from that one if you stayed invested. We decided to test the hypothesis of staying invested through thick or thin. Let’s agree on when the worst possible time might have been to invest in the U.S. stock market in recent times. The obvious conclusion was to invest just before the two major crashes in 2000-2001 and 2008-2009 and stay invested through both crashes. How much would you have lost if you stayed invested until now? For our purposes, we used the S&P 500 as a proxy for the stock market. So, on Dec. 31, 1998, our hapless investor decided to plunk his life savings, and his future, into the stock market with a solemn promise to stay invested until his retirement some 25 years later. We observed the value of the index on Jan. 1, 1999 and assumed our investor kept his promise and stayed invested through two of the most horrible stock market periods in history. We checked his results on December 31, 2019. On the day he invested at the end of 1998, the S&P 500 index stood at 1,229. On December 31, 2019 the index was 3,230. Our investor’s portfolio, far from losing money, had increased more than 292% (dividends reinvested). But at what psychological cost? During this period, our investor would have had to endure a peak to trough market decline of -50% in 2000-2001, and a peak to trough decline of -53% in 2008-2009. (dividends reinvested, this becomes -45.5% and -50.7% respectively). Few investors can endure that level of pain.

So, history suggests that the single best way to make a great deal of money is to invest in the stock market for the long term. We’ve all heard that said for decades but even if I can demonstrate convincingly that for an investor under 40 years old a portfolio invested 100% in the S&P 500 index will serve very well, no one believes it and no one follows that advice. Here’s why: While the stock market has returned close to 10% a year on average with dividends reinvested for over 100 years, it hasn’t been a smooth ride.

What makes a good advisor


Company: cnbc, Activity: cnbc, Date: 2020-02-02  Authors: peter tanous, lynx investory advisory
Keywords: news, cnbc, companies, investors, investor, heres, does, market, worst, major, index, enemy, diversification, reduce, portfolio, investment, stock, invested


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post