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A taxi driver takes a Ukrainian refugee child in his arms from his taxi as they arrive to Madrid. A convoy of taxis traveled from Madrid to the Polish-Ukrainian border carrying humanitarian aid and bringing back Ukrainian families fleeing Russia's invasion of Ukraine, in total 133 refugees, of which 60 are children. The convoy arrived to the foundation 'Mensajeros de la Paz', which will provide them accommodation.
Marcos Del Mazo | Lightrocket | Getty Images
U.N. to EU: Donβt backtrack on climate goals amid energy pinch
United Nations Deputy High Commissioner for Human Rights Nada Al-Nashif delivers a speech during an extraordinary meeting on Ethiopia at the United Nations (UN) Human Rights Council on December 17, 2021 in Geneva.
The acting U.N. human rights chief urged European Union member states to avoid "backtracking" on their efforts to develop renewables and energy-efficiency projects at a time when soaring energy prices have prompted some to ramp up use of and searches for fossil fuels.
Beyond expressing concerns about the direct impact of Russia's war in Ukraine, she noted how the war has dented exports of food and fuel from those two countries - that are major producers of both - forcing EU states, for example, to scramble for more energy sources.
At least 122 vessels carrying agricultural products have left Ukrainian ports since they reopened
The organization overseeing the export of agricultural products from Ukraine said that 122 vessels have left the besieged country since ports reopened.
U.N. says at least 5,827 killed in Ukraine since start of war
Ukraine and Russia interested in protection zone around nuclear power plant, IAEA chief says
Ukraine and Russia are interested in the International Atomic Energy Agency's proposal to set up a protection zone around the Zaporizhzhia nuclear power plant, according to the head of the U.N.'s nuclear watchdog.
The IAEA's Director-General Rafael Grossi said on Monday that he had seen "signs that they are interested in this agreement," he said at a news conference.
"What I see is two sides that are engaging with us, that are asking questions, lots of questions."
The nuclear power plant in southern Ukraine is a continuing bone of contention for Ukraine and Russia with both sides accusing each other of shelling the facility that Russia has occupied since early on in the war.
The IAEA carried out a safety inspection of the site in recent weeks and called for a "nuclear safety and security protection zone" around the plant, the largest nuclear facility in Europe, in a bid to prevent an accident.
Ukraine has called for the demilitarization of the plant and the IAEA has called for all shelling of the facility to stop.
Defiant Kremlin insists 'special military operation' will continue despite hasty retreat in northeast
The Kremlin's Spokesman Dmitry Peskov insisted Monday that the country's "special military operation," as it dubs its invasion of Ukraine, will continue despite the loss of dozens of occupied towns and villages in the northeast Kharkiv region.
Russian forces were "regrouped and redeployed" in order to defend occupied territory in neighboring Donetsk after Ukraine launched a surprise counterattack around Kharkiv. Ukraine took advantage of Russia's redeployment of many troops to southern Ukraine for a well-publicized counteroffensive there.
Putin's press secretary said Monday that the Russian president "receives reports on everything that is going on during the special military operation, including on the regrouping of Russian troops."
When asked whether the country's military leadership continues to enjoy the confidence of the head of state, Peskov told reporters that "the special military operation continues and will continue until all the goals that were initially set are achieved," Russian state news agency Tass reported.
The Kremlin spokesman did not comment on reports that the commander of the Western Military District had allegedly been fired. "This should be referred to the Defense Ministry," Peskov said.
Ukraine's troops outnumbered Russia's in battle, Kremlin-installed official says
A Russian-installed official in Ukraine's Kharkiv region said on Monday that Ukrainian forces outnumbered Russian and pro-Russian forces by eight times during a lightning Ukrainian counteroffensive in the region last week, Reuters reported.
Ukraine works to restore power and water in Kharkiv after missile strikes
Ukraine is still trying to restore electricity and water supplies in the Kharkiv region after missile attacks over the weekend, following Ukrainian counterattacks in the region, caused supply outages.
Deputy Head of the Ukrainian President's Office Kyrylo Tymoshenko said on Telegram Monday that 80% of electricity and water supplies in the Kharkiv region have been restored. "We continue to work," Tymoshenko said.
Smoke rises over Kharkiv's western outskirts as firefighters put out the fire after a Russian rocket attack hit an electric power station in Kharkiv, Kharkiv Oblast, Ukraine, on Sept. 12, 2022.
The Mayor of Kharkiv Ihor Terekhov said on Telegram Sunday that Russian missile attacks on an infrastructure facility in Kharkiv had knocked out both water and power supplies.
He said the strikes were in "revenge" for "the successes of our army at the front, in particular in the Kharkiv region." Ukraine has managed to retake 3,000 square kilometers [around 1,158 square miles] of Russian-occupied territory since the start of September, much of that around Kharkiv in the northeast.
President Zelenskyy said there had been a "total blackout" affecting the Kharkiv and Donetsk regions, as well as a partial blackout in the Zaporizhzhia, Dnipropetrovsk & Sumy regions, as a result of Russian missile strikes over the weekend.
He said on Twitter that Russian forces "remain terrorists & attack critical infrastructure. No military facilities, the goal is to deprive people of light & heat." | 2022-09-12T20:47:08Z | www.cnbc.com | Live updates: Latest news on Russia and the war in Ukraine | https://www.cnbc.com/2022/09/12/russia-ukraine-live-updates.html | https://www.cnbc.com/2022/09/12/russia-ukraine-live-updates.html |
This emerging market fund prioritizes investments in countries based on civil, political and economic freedom
One emerging market fund has found a new way to invest that avoids countries governed by an autocracy. In many traditional emerging market exchange-traded funds, investments are weighed by country size β the countries with the largest market capitalizations automatically take up more of the money in the fund. For investors looking to gain exposure to emerging markets, but who also want to avoid countries such as China, this can be an issue. To solve this problem, the Freedom 100 Emerging Markets exchange-traded fund at Life + Liberty Indexes decided to weigh emerging markets by measures of freedom. "This is a way for investors to get allocation to the emerging markets without funding autocracies and giving the freer countries a higher weight," Perth Tolle, the founder of Life + Liberty Indexes told CNBC's Bob Pisani at the "Future Proof" conference. To determine a freedom measure for emerging market countries, the fund uses third-party data from the Cato Institute and the Fraser Institute. The data encompasses measures of civil, political and economical freedoms. The country with the highest freedom score currently is Taiwan, but the country with the biggest allocation in the index is Chile. Chile currently makes up 25% of the ETF. That's because of Chile's market outperformance β it's up more than 20% this year β not just their freedom weight, Tolle said. "Chile has exposure to all of the commodities in all of their sectors, and so that has done really well this year," she said. "If you had a market-cap weight fund you would've had a 1% allocation to that."
Josh Brown says the next generation of investors should be taken seriously
Goldman's 4-part plan for stock investors the rest of the year | 2022-09-12T20:47:36Z | www.cnbc.com | This emerging market fund invests in countries based on freedom | https://www.cnbc.com/2022/09/12/this-emerging-market-fund-invests-in-countries-based-on-freedom.html | https://www.cnbc.com/2022/09/12/this-emerging-market-fund-invests-in-countries-based-on-freedom.html |
Bond yields were mostly higher on Monday as the U.S. dollar weakened and inflation expectations declined.
The yield on the benchmark 10-year Treasury note gained 3 basis points, trading at 3.353%. The yield on the 30-year Treasury bond was up about 4 basis points at 3.499%.
Meanwhile, The yield on the 2-year Treasury dipped less than 1 basis point to 3.563%. Yields move inversely to prices, and a basis point is equal to 0.01%.
The New York Fed's Survey of Consumer Expectations showed that in August Americans expected inflation to be 5.7% one year ahead. That is down from 6.2% in July and the lowest reading since October 2021.
"We're getting into treacherous territory here with these rate hikes. ... There is a game of chicken now that the Fed is playing with economic activity, and them deciding that they're not going to slow it too much and the markets worried that they will," Peter Boockvar of Bleakley Advisory Group said on "Power Lunch."
In the primary market, auction for the 3-year, 10-year, 3-month and 6-month bills were held on Monday. | 2022-09-12T20:47:48Z | www.cnbc.com | 10-year Treasury yield edges higher even as U.S. consumer inflation expectations decline | https://www.cnbc.com/2022/09/12/treasury-yields-edge-lower-ahead-of-us-consumer-expectations-report.html | https://www.cnbc.com/2022/09/12/treasury-yields-edge-lower-ahead-of-us-consumer-expectations-report.html |
A detailed property inventory of documents and other items seized from former U.S. President Donald Trump's Mar-a-Lago estate is seen after the document was released to the public by the U.S. District Court for the Southern District of Florida in West Palm Beach, Florida, September 2, 2022.
An FBI special agent said Tiffani Shea Gish of Houston left three threatening voicemails on the chamber telephone of Judge Aileen Cannon of U.S. District Court in southern Florida, according to a criminal complaint filed Tuesday.
Gish's pseudonym is the same name as the protagonist played by Angelina Jolie in the 2010 action film "Salt."
Trump is "marked for assassination and so are you," Gish said in the expletive-filled messages, the complaint showed. "You're full of s---, and I'm going to f---ing have you shot myself. I've already ordered snipers and a bomb to your f---ing house," Gish allegedly said in the voicemails, all of which were made on Sept. 1.
In March, a U.S. Secret Service agent called Gish's mother, who "claimed her daughter suffered from severe Bi-Polar disorder and is borderline schizophrenic," according to the court filing.
A competency hearing is set for Tuesday. Attorneys for Gish did not immediately respond to CNBC's request for comment.
Gish left the voicemails for Cannon, an appointee of Trump, as the former president's lawyers and the DOJ argued about whether the judge should appoint a special master to review the thousands of government records seized last month from Trump's Florida home Mar-a-Lago. That court-appointed independent third party would examine the seized records, many of which bore high-level classification markings, for personal items and possibly privileged material. | 2022-09-12T20:47:50Z | www.cnbc.com | Trump Mar-a-Lago special master: Woman charged with threatening judge | https://www.cnbc.com/2022/09/12/trump-mar-a-lago-special-master-woman-charged-with-threatening-judge.html | https://www.cnbc.com/2022/09/12/trump-mar-a-lago-special-master-woman-charged-with-threatening-judge.html |
Hereβs why it's so important to start saving and investing in your 20s
Select looks at why it's so important to start saving for retirement sooner rather than later.
Updated Mon, Sep 12 2022
Xavier Lorenzo | Moment | Getty Images
As someone who is in their 20s, I know how hard it can be to start saving for retirement. Between paying medical bills, groceries and rent in New York City, my budget usually involves making trade-offs, whether it means opting to travel to a cheaper grocery store or not going out for dinner or drinks with friends.
Of course, I'm not alone in feeling this way. The Deloitte Global 2022 Gen Z & Millennial Survey looked at more than 23,000 millennials and Gen Zers internationally and found that nearly half of them were living paycheck to paycheck; cost of living was also rated as one of their top concerns.
Between high inflation rates β 8.5% in July! β student loan debt and the rising cost of rent and medical expenses, it's no surprise younger generations are feeling like they're falling behind previous generations when it comes to saving up for retirement.
There's data to back this up, too. A 2021 study conducted by the Center for Retirement Research at Boston College found that 28- to 38-year-olds had built up less wealth than previous generations had by the same age, largely because of higher student loan debt.
So, what can Gen Zers and millennials do when it feels like the cards are stacked against them? Select spoke with Barbara Ginty, certified financial planner and host of the Future Rich Podcast, about the importance of saving for retirement in your 20s, even when a lot of factors may be out of your control.
How to save more money
First off, there are generally two ways for you to save money: By cutting back on your expenses or finding a way to earn more money.
Generally, personal finance advice is best suited for those who have some income left over every month after paying for essential expenses such as housing, transportation, food and medical bills. If the majority of your income goes toward these categories, it can be difficult to cut back, though that could also mean finding cheaper housing, getting roommates or moving back home for a while. Spending less money could also mean cutting discretionary expenses such as dining out, going to the movies or using multiple streaming or subscription services.
The other option you have is to find a way to bring in more money. You could try getting another job with higher pay, starting a side hustle or asking for a raise at your current job, Ginty explains β with today's tight labor market, securing a new job with higher pay might not be as hard as it used to be.
As of July 2022, those who have changed jobs increased their wages by 6.7% compared with the 4.9% increase those who stayed in their current roles for the past three months saw, according to the Federal Reserve Bank of Atlanta.
Why you should start investing in your 20s
Ginty explains that the primary factor young people have going for them when it comes to saving for retirement is time. When you invest, you're earning compound interest β or, interest on your interest β so you'll earn substantially more on your investments over longer periods of time than you would over shorter time frames.
She uses the following example to highlight the advantages of investing early: If you invest $2,000 a year (which is just $166 a month) from age 19 to 27 and don't save anything again beyond that point, and assume your investments yield an average 10% rate of return over the course of your lifetime, you'll end up with $1 million by the time you're 65.
On the other hand, if you wait until age 27 to start saving $2,000 a year and then save for the next 38 years, you'll end up with $800,000 by age 65. In other words, you would make $200,000 more by the time you're 65 if you started investing at age 19 and would have only had to save for eight years total, versus starting at age 27 and saving for 38 years straight.
Millennials and Gen Zers aren't just disadvantaged when it comes to saving for retirement because of student loan debt and increased cost of living. While previous generations may have received retirement benefits through pensions, beginning in the 1970s, an increasing number of employers started offering 401(k) accounts to their employees instead. As a result, the onus of saving for retirement falls on individuals. 401(k) accounts enable people to invest their retirement savings in the stock market, so your returns will ebb and flow along with the market.
Many employers offer a 401(k) match, and the company you work for will match a percentage of income you're saving. Since 401(k) contributions are typically deducted straight from your paycheck, it's easier to save this way because you won't have an opportunity to spend that money before it hits your bank account.
If your employer does offer a match, it's important to maximize it as you'll be receiving a 100% rate of return by doing so. Once you've received your employer's match, opt for saving in a Roth IRA, which is another tax-advantaged retirement account.
With a Roth IRA, you'll pay taxes on your upfront contributions, allowing your savings to grow tax-free over time, plus you won't pay taxes when you withdraw in retirement. Note that in order to be eligible for a Roth IRA, you must make less than $144,000 as an individual or $204,000 as a married couple.
Select ranked Charles Schwab, Fidelity Investments and Betterment as the companies offering the best Roth IRAs based on factors such as investment options, fees and ease of use.
To make the process less intimidating, start small when saving for retirement and slowly increase your savings rate over time. For instance, you could save 5% of your income now but increase that rate to 10% over the next two years. Regardless of how much money you start with, any amount is better than none.
If you want to start saving cash for more near term needs, like an emergency or house fund, consider putting that in a high-yield savings account like LendingClub High-Yield Savings account or the Marcus by Goldman Sachs High Yield Online Savings account. These accounts don't fluctuate with the market but still pay out interest on your idle cash.
Strong APY
No minimum balance required
Free ATM card and no ATM fees
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The prospect of saving for retirement may seem daunting when you've started your first job or moved into a new apartment, and with rising housing costs and increasing student loan debt, there are many factors making it harder for Gen Zers and millennials to do so.
That, however, is exactly why it's so important for young people to start saving right now. With time on your side, young people can take advantage of compound interest by investing in tax-advantaged retirement accounts such as 401(k)s and IRAs. Even if you're only contributing a few hundred dollars a month for now, the difference in earnings could end up being thousands β or hundreds of thousands β of dollars later in life.
How much money do millennials really make?
Millennials are behind when it comes to saving for retirement β here's what they can do to get ahead
The average millennial has $27,251 in non-mortgage debt β here's how they compare to other generations | 2022-09-12T20:48:10Z | www.cnbc.com | Hereβs Why You Should Start Saving in Your 20s | https://www.cnbc.com/select/why-you-should-start-saving-in-your-20s/ | https://www.cnbc.com/select/why-you-should-start-saving-in-your-20s/ |
Oracle CEO Safra Catz speaks during the SelectUSA Investment Summit in Oxon Hill, Maryland, on June 19, 2017. The SelectUSA Investment Summit brings together companies from all over the world, economic development organizations from every corner of the nation and other parties working to facilitate foreign direct investment (FDI) in the United States.
Revenue: $11.45 billion, vs. $11.45 billion as expected by analysts, according to Refinitiv.
Revenue growth in the quarter ended Aug. 31 accelerated from 5% in the prior quarter, according to a statement.
Oracle received a $1.4 billion contribution from Cerner, after the $28 billion acquisition closed during the quarter.
Net income declined to $1.55 billion from $2.46 billion in the year-ago quarter. Oracle said it would have seen 8 cents more adjusted earnings per share if it were not for unfavorable foreign-exchange rates.
Oracle's cloud services and license support category generated $8.42 billion in revenue, up 14% and above the StreetAccount consensus of $8.27 billion.
Oracle's applications and infrastructure cloud businesses now represent over 30% of total revenue, CEO Safra Catz said in a statement. Revenue from cloud infrastructure totaled $900 million in the quarter, up 52%.
In addition to completing the Cerner deal, Oracle announced the availability of its database software through Microsoft's Azure public cloud, but running on Oracle's own cloud infrastructure.
Catz said she expects exchange rates to have a 5% to 6% negative impact on revenue and a hit on earnings per share of up to 7 cents per share for the fiscal second quarter.
Excluding the after-hours move, Oracle shares are down almost 12% so far in 2022, while the S&P 500 is down around 14% over the same time period.
Oracle executives will discuss the results with analysts and issue guidance on a conference call starting at 5 p.m. ET.
Guggenheim's DiFucci reveals what separates good and bad security software companies | 2022-09-12T21:21:44Z | www.cnbc.com | Oracle (ORCL) earnings Q1 2023 | https://www.cnbc.com/2022/09/12/oracle-reports-18percent-revenue-growth-after-cerner-deal-closes.html | https://www.cnbc.com/2022/09/12/oracle-reports-18percent-revenue-growth-after-cerner-deal-closes.html |
Sae Hyung Jung, who calls himself a serial entrepreneur, is no stranger to failure.
Sae Hyung-jung remembers a time when he worried about not having enough money for his next meal.
He was 20 years old, and had just founded an artificial intelligence (AI) company that helped students improve their test scores for university entry examinations β but it wasn't doing well.
"I had so much debt and I even had to use my credit card to give salary to my employees," Sae told CNBC Make It.
Ten years later, the serial entrepreneur's life paints a rather different picture.
I was so obsessed about making it work because it was my own product.
Sae Hyung-jung
Founder and CEO, oVice
He is now the founder and CEO of oVice, a virtual office platform created to bring the collective energy in physical office spaces to remote teams.
For example, the platform allows casual check-ups with colleagues without the "formalities of online meetings," according to oVice.
The company is headquartered in Japan where Sae, a South Korean, now lives.
Late last month, oVice raised $32 million in a Series B funding round led by a group of investors from Japan and overseas. The latest funding brought the total capital raised to $45 million.
The company has been making $6 million in annual recurring revenue, according to Sae.
CNBC Make It finds out what the young entrepreneur learned from his failures, and how a new start-up was eventually born.
Flexibility is key
The biggest problem about the failed AI venture was that he did not "find the market," Sae acknowledged.
"My AI platform specialized in that one examination that overseas students needed to take to come to Japan," he shared, referring to the Examination for Japanese University Admission for International Students (EJU).
Sae, who was studying in Japan in 2017, took the same exam and struggled while preparing for it.
"There were not many books to study for EJU... I collected questions from local university exams and made an AI that generates questions to improve students' scores," he said.
"But [at that time], only 1,000 people were doing this exam every year, so it was [a] really niche and small market."
Investors told him that for them to invest in the start-up, he would need to expand the market.
But Sae said he was stubborn. "I said no. I want to solve this problem."
Despite his resolve, the platform struggled to stay afloat, and as Sae put it simply β "it failed."
Sae Hyung Jung is now the founder and CEO of oVice, a virtual office platform created to bring the collective energy in physical office spaces β to remote teams.
"I was so obsessed about making it work because it was my own product."
He eventually sold off the company, which helped him to pay off his debts and gave him the "reset" he said he desperately needed.
Even so, Sae didn't give up β because entrepreneurship is a "continuous journey," he said. Moreover, it wasn't his first taste of failure.
When he was 18, he started a trade brokerage business connecting companies with supplies and distributors in Japan and South Korea. But after a year, Sae had to close shop.
"Back then, 2011, there was a big earthquake in Japan. It was crazy⦠my clients [in South Korea] were importing products from Japan, their buying prices were doubling."
If you have flexibility, you will have a closer chance of success.
Seeing how unsustainable the business was, Sae decided to shut down his business and pursue a university degree in Japan instead.
Looking back at his experiences, he realized being adaptable is crucial in entrepreneurship.
"If it's not going to work, it's okay. I will start another thing. If you have flexibility, you will have a closer chance of success."
Throughout university and graduate school, Sae worked as an AI and blockchain consultant. In February 2020, his role brought him to Tunisia β which is about 925 kilometers, or 575 miles, from Italy.
At that time, the Covid-19 virus was spreading quickly throughout Italy, which became the epicenter of Europe's first coronavirus outbreak.
"The Tunisian government said that you need to go out tomorrow because we're going into lockdown. But flights to Japan happened once a day, so it was impossible," Sae said.
Stuck in Tunisia, Sae had to work remotely, along with his colleagues in Japan who were working from home as well.
But he quickly grew frustrated with remote work, as there was little collaboration between employees.
Doing remote work ... It felt like a blackout, you don't know anything that's happening in the company anymore.
"In the office, I could go ask for project updates and quickly identify bottlenecks, or I could discover problems from conversations I somehow overheard," he explained.
"But doing remote work, communicating through Zoom, Slack⦠that doesn't give you the same kind of experience. It felt like a blackout, you don't know anything that's happening in the company anymore."
Sae decided to take matters into his own hands, and recreated the space-sharing concept of an office β taking it online.
For example, his virtual office platform allows users, or their avatars, to approach a colleague to start a conversation or have a casual chit-chat β much like in a physical office.
Don't want to be overheard? You can "lock" the conversation or take it to a private virtual meeting room, Sae said.
oVice allows employees to approach their colleagues to start a conversation or have a casual chit-chat β much like in a physical office.
After taking two weeks to build his first prototype and sharing it with his colleagues, Sae realized his creation brought him huge satisfaction.
"Because I enjoyed it so much, I believe that the people who feel the need to be in an office will be satisfied as well."
oVice was launched in Japan in August 2020, and Sae said there was a huge uptick of companies paying for the service as they realized the pandemic was not going away any time soon.
"Companies started thinking about communication and engagement with remote work and oVice helped with that."
Pivot to hybrid work
Sae's new company enjoyed huge success in the last two years due to the pandemic.
But as countries around the world relaxed restrictions and workers began returning to offices, oVice began shifting its focus to companies adapting to what some have called, "the new normal" β hybrid working.
How remote and hybrid work changed the office
"Many people are now like, I like being in the office, but if my company decides to go to office 100%, I will quit. And companies know that," Sae added.
"Yes, we are going back to the office, but it doesn't mean that [online collaboration] will vanish."
Sae remains confident that his platform will continue to thrive as workplaces move toward hybrid work and pre-pandemic normalcy.
It was good to experience some failure, they taught me important lessons.
According to the company website, oVice currently hosts over 20,000 companies worldwide. "Our annual revenue will reach more than $10 million this year," Sae added.
As he soaks in the success of his third venture, Sae said he looks back at his failures fondly.
"It was good to experience some failure, they taught me important lessons. Now, after two failures, this business feels easy to me now," he said with a laugh. | 2022-09-13T00:24:41Z | www.cnbc.com | How this millennial entrepreneur runs a multi-million startup in Japan | https://www.cnbc.com/2022/09/13/how-this-millennial-entrepreneur-runs-a-multi-million-startup-in-japan-.html | https://www.cnbc.com/2022/09/13/how-this-millennial-entrepreneur-runs-a-multi-million-startup-in-japan-.html |
Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting on January 29, 2020 in Washington, DC.
This month's report "serves up a gut punch to anyone who's been hoping that inflation would come down substantially," says Mark Hamrick, Bankrate's senior economic analyst.
"The implication is that the Federal Reserve has to remain aggressive" with interest rate hikes, he says.
It's widely expected that the Fed will implement another rate hike of 0.75% when the Federal Open Market Committee meets later in September. Beyond that, more rate hikes are likely if the rate of inflation is still not under control.
"The baseline takeaway for consumers and businesses is that interest rates have risen and are very likely headed substantially higher from here," says Hamrick. | 2022-09-13T15:59:55Z | www.cnbc.com | Inflation rose in August, Fed interest rate hikes likely | https://www.cnbc.com/2022/09/13/inflation-rose-in-august-fed-interest-rate-hikes-likely.html | https://www.cnbc.com/2022/09/13/inflation-rose-in-august-fed-interest-rate-hikes-likely.html |
Published Tue, Sep 13 202210:28 AM EDT Updated Moments Ago
The rise and fall of the Toyota Prius
Toyota Motor Corporation cars are seen at a briefing on the company's strategies on battery EVs in Tokyo, Japan December 14, 2021.
That makes Toyota's hybrid strategy somewhat economical β relatively speaking. Toyota also contends that there just aren't enough of such minerals to go around.
The publicly traded mining company forecasts that even if all forecast nickel sulfate production through 2030 from U.S. and free trade agreement countries went into producing electric vehicles, it would supply less than 60% of EV targets set by automakers during that timeframe. | 2022-09-13T16:00:01Z | www.cnbc.com | Why Toyota β the world's largest automaker β isn't all-in on EVs | https://www.cnbc.com/2022/09/13/why-toyota-the-worlds-largest-automaker-isnt-all-in-on-evs.html | https://www.cnbc.com/2022/09/13/why-toyota-the-worlds-largest-automaker-isnt-all-in-on-evs.html |
The Purosangue looks like an SUV, akin to other luxury sports SUVs from brands like Porsche and Maserati. But despite its size, shape and higher stance, the company insists that the Purosangue β which means "thoroughbred" in Italian β is a sports car, designed from the ground up as a true Ferrari.
Ferrari said the location of the engine β and of the Purosangue's transaxle, mounted at the rear β distributes the vehicle's weight almost evenly among the four wheels, improving its handling.
The Purosangue will start at 390,000 euros ($389,000) in Italy, Ferrari said, making it the company's second most expensive production model behind the 440,000-euro SF90 hybrid sports car.
Why the Urus is imprtant to Lamborghini | 2022-09-13T19:41:45Z | www.cnbc.com | Ferrari unveils Purosangue, a 4-door, V-12-powered sports car | https://www.cnbc.com/2022/09/13/ferrari-unveils-purosangue-a-4-door-v-12-powered-coupe.html | https://www.cnbc.com/2022/09/13/ferrari-unveils-purosangue-a-4-door-v-12-powered-coupe.html |
Brazilβs polarized election campaign sees ex-leader da Silva on the cusp of a remarkable comeback
Da Silva has consistently been polling ahead of Bolsonaro, although some opinion polls have shown the incumbent narrowing the deficit in recent days.
Da Silva has consistently been polling comfortably ahead of the far-right former army captain in both the first round and an expected run-off, although some opinion polls have shown the incumbent narrowing the deficit in recent days.
A return to office for Da Silva, who led Latin America's biggest country from 2003 to 2010, would mark an extraordinary political comeback.
The former metalworker was jailed in 2017 in a sweeping graft investigation that put dozens of the country's political and business elites in prison. Da Silva was released in Nov. 2019 and his criminal convictions were later annulled, paving the way for him to seek a return to the presidency.
Commenting on violence on the campaign trail, da Silva described a "climate of hatred in the electoral process which is completely abnormal."
Asked whether she then expected Da Silva to secure victory in the second round, Mauad replied, "Yes, definitely β if we have a second round. And I am more of a pessimist in that sense because Bolsonaro is calling his supporters and increasing the tension between supporters from both candidates."
In one of the latest instances of the mounting political tensions in Brazil, authorities reported last week that a Bolsonaro supporter stabbed to death Benedito Cardoso dos Santos, a 42-year-old backer of Da Silva. The incident occurred in Mato Grosso, a large state in west-central Brazil.
Commenting on the violence, Da Silva told reporters in Rio de Janeiro on Friday that there was a "climate of hatred in the electoral process which is completely abnormal."
Da Silva has pledged a major crackdown on Amazon crime if elected, while Bolsonaro β despite widespread criticism for his destructive policies β has outlined proposals to halt deforestation in the rainforest. | 2022-09-14T07:13:27Z | www.cnbc.com | Bolsonaro vs. Lula: All you need to know ahead of Brazilβs election | https://www.cnbc.com/2022/09/14/bolsonaro-vs-lula-all-you-need-to-know-ahead-of-brazils-election.html | https://www.cnbc.com/2022/09/14/bolsonaro-vs-lula-all-you-need-to-know-ahead-of-brazils-election.html |
"We hope this is a starting point," Yuriy Sak, an advisor to Ukraine's Defense Minister Oleksii Reznikov, told CNBC Wednesday.
In Europe, meanwhile, the head of the European Commission Ursula von der Leyen praised Ukraine's advances and reiterated the region's commitment to supporting Ukraine for "the long haul," noting Wednesday that "we have seen in the last days the bravery of Ukrainians paying off."
Defense Ministry official Yuriy Sak told CNBC that Ukraine's armed forces "will keep the momentum" in the conflict, planning more counteroffensive operations both in the northeast and the south.
Nonetheless, he noted, that "at the same time, we understand who we are dealing with, right? So this is an army of war criminals, and genocidal army, they've not stopped the missile terror."
Still, it's undoubted that a number of Russia's forces now appear to be on the back foot in parts of Ukraine with Zelenskyy saying some were fleeing back across the border to Russia.
Aanalysts say that Ukraine's advances will have shaken the Kremlin and believe that Russian President Vladimir Putin's regime is looking more fragile this week.
The ISW noted the Russian Ministry of Defense's original explanation for its failure in Kharkiv, claiming its forces were withdrawing from the region to "regroup," had faced "quick and loud criticism online" and that the Kremlin's acknowledgment of the defeat was now "part of an effort to mitigate and deflect criticism for such a devastating failure away from Russian President Vladimir Putin and onto the Russian Ministry of Defense and the uniformed military command."
It's now very likely that Russia's Defense Minister Sergei Shoigu will become Putin's "fall guy," one analyst told CNBC Tuesday.
"This is an embarrassing defeat for the Russians," said Samuel Ramani, a geopolitical analyst and associate fellow at the Royal United Services Institute, adding that there would be a push in Moscow to blame Russia's Ministry of Defense for failings in the military campaign in Ukraine.
"Putin will keep Shoigu there to take the criticism and take the heat, while he keeps shuffling and firing lower level commanders. Already we've seen in six weeks two commanders get fired in the western military district alone ... So Putin is not weak right now, the criticism isn't going to him, it's going to the defense ministry," he noted. | 2022-09-14T13:18:59Z | www.cnbc.com | As Ukraine recaptures lost land, is this a turning point in the war? | https://www.cnbc.com/2022/09/14/as-ukraine-recaptures-lost-land-is-this-a-turning-point-in-the-war-.html | https://www.cnbc.com/2022/09/14/as-ukraine-recaptures-lost-land-is-this-a-turning-point-in-the-war-.html |
The second generation SE Apple Watch is $30 cheaper than the first generation.
Apple Watch Series 8 and SE (second generation).
I've been testing the new Apple Watch Series 8 and Apple Watch SE second generation ahead of its release Friday.
If you already have an Apple Watch, the $399 Series 8 doesn't have enough new features to justify an upgrade. Most of the worthwhile innovations are available on Watch OS 9, which you can download as long as you have an Apple Watch Series 4 paired with iPhone 8 or later.
(The $799 Apple Watch Ultra, built for people who are into extreme sports, won't be available until Sept. 23, and we'll cover that when we get our hands on it.)
Apple doesn't break out its watch revenue the way it does for the iPad, iPhone and Mac. However, the company's Wearables, Home and Accessories business β which includes Apple Watch, HomePod, AirPods and Apple TV β saw sales fall in Apple's latest quarter to $8.08 billion from $8.78 billion a year earlier. The two watches that go on sale Friday probably won't have much effect on this business segment, but the pricey Ultra β if successful β could help increase wearables sales for the company's next fiscal year, which starts in October. (So could the new AirPods Pro 2, which I'll be reviewing later on.)
The second generation Apple Watch SE only comes in aluminum in either 44mm or 40mm, and it doesn't have the always-on display. It's available in black, tan, and silver.
Despite being the cheaper model, the SE has the latest S8 processor, which is the same one that's inside the new Series 8. Apple says the upgrade makes the SE 20% faster than the first generation SE which debuted in 2020.
SE has fewer health features, but the important ones
The SE has heart rate and fall detection, while the Series 8 can measure blood oxygen levels and an ECG app to monitor heart rhythms.
While I appreciate Apple incorporating women's health into the new watch, I have a hard time understanding how retrospective ovulation will provide the data necessary for women who are trying to conceive. Instead of giving you data about when you ovulated last month, other wearables like Ava Fertility tell you when you're actively ovulating so you can take advantage of your fertility window if you are trying to conceive.
Having heart rate notifications on the new SE can alert users of unusually high or low heart rates or irregular rhythms which Apple says has helped save lives.
There is one advancement in the Series 8 that could provide users with important information. It now has AFib monitoring, which will help diagnose people with arterial fibrillation, the most common type of irregular heartbeat. If you have that underlying condition, I can understand wanting the Series 8.
When it comes to sleep both, watches provide comprehensive sleep tracking, though as I mentioned, the smaller and lighter SE is a little more comfortable to wear to bed.
Having a wearable that only lasts 18 hours or less is disappointing. A few months ago, I started using the Oura Ring which gives me many of the same metrics as the Apple Watch, except I forget I'm wearing it and it only needs to be charged every 3.5 to 4 days.
If you've never owned a smartwatch and you just want the basic functions like notifications and activity monitoring, the SE is a great value. If you have a medical condition, like an irregular heartbeat, the Series 8 may provide you with some added peace of mind.
If you've already got a recent model Apple Watch, I hardly noticed a difference when using the Series 8 compared with my Series 7, or even the Series 5, so I would not suggest upgrading. The new health tracking features like the temperature sensor don't feel worthwhile enough to justify the price, especially since ovulation tracking is backwards looking. | 2022-09-15T16:35:09Z | www.cnbc.com | Apple Watch review: Skip Series 8. The SE is the best value | https://www.cnbc.com/2022/09/15/apple-watch-review-skip-series-8-the-se-is-the-best-value.html | https://www.cnbc.com/2022/09/15/apple-watch-review-skip-series-8-the-se-is-the-best-value.html |
Roger Federer of Switzerland waves to the crowd after victory in his Gentlemen's Singles Fourth Round match against Roberto Bautista Agut of Spain during day seven of the Wimbledon Lawn Tennis Championships at the All England Lawn Tennis and Croquet Club on July 6, 2015 in London, England.
Tennis legend Roger Federer is retiring from the sport after a 24-year career. The Swiss player made the announcement on Thursday in a letter posted to Twitter.
Federer said the Laver Cup in London next week will be his final ATP event. He has faced multiple injuries and surgeries and said he knows his "body's capacities and limits." He posted a recording of himself reading the letter.
He holds the professional tennis record for the most consecutive weeks at No. 1 with 237, and the record for the oldest player to rank No. 1, at 36, in 2018. The 41-year-old is a 20-time Grand Slam champion. He has played more than 1,500 matches during which the ATP records that he served 11,478 aces.
Federer turned pro as a teenager and established storied rivalries against fellow tennis legends Rafael Nadal and Novak Djokovic.
He thanked his wife Mirka, his parents, his sister and his business team in the emotional letter. Federer recorded more than $130 million in career earnings. His sponsors include Wilson, Rolex, Mercedes-Benz, Uniqlo, Moet Hennessey, and Credit Suisse.
At the U.S. Open in late August, he referenced the possibility of his retirement, saying it was "almost time to retire β but not yet." Afterwards, he walked that comment back as "a total joke," according to NBC Sports.
Federer did not say what he was planning to do after retiring from the tour, but he concluded the letter, writing: "Finally, to the game of tennis: I love you and will never leave you." | 2022-09-15T16:35:22Z | www.cnbc.com | Roger Federer, Swiss tennis great, announces he's leaving the sport | https://www.cnbc.com/2022/09/15/roger-federer-swiss-tennis-great-announces-hes-leaving-the-sport.html | https://www.cnbc.com/2022/09/15/roger-federer-swiss-tennis-great-announces-hes-leaving-the-sport.html |
The U.S. economy is braking hard, says Starwood Capital's Barry Sternlicht
The U.S. economy is teetering on the brink of a serious downturn if the Federal Reserve doesn't pump the brakes on its rate hikes, billionaire CEO Barry Sternlicht said.
"The economy is braking hard," the chairman and CEO of Starwood Capital Group told CNBC's "Squawk Box" on Thursday. | 2022-09-16T00:03:51Z | www.cnbc.com | βThe economy is braking hard,' says billionaire Barry Sternlicht | https://www.cnbc.com/2022/09/15/the-economy-is-braking-hard-says-billionaire-barry-sternlicht-.html | https://www.cnbc.com/2022/09/15/the-economy-is-braking-hard-says-billionaire-barry-sternlicht-.html |
Experts at the Getty spent three years repairing "Woman-Ochre," a 1954-55 painting by Willem de Kooning that was stolen from The University of Arizona Museum of Art in 1985.
See the moment a stolen de Kooning returns 'home'
Andy Schulz, The University of Arizona's Vice President for the Arts (left), and Getty conservation scientist Tom Lerner (right) look at "Woman-Ochre" at the opening of Getty's "Conserving de Kooning: Theft and Recovery" exhibition in June 2022. | 2022-09-16T01:43:38Z | www.cnbc.com | "Woman-Ochre" de Kooning's painting from theft to its return home | https://www.cnbc.com/2022/09/16/woman-ochre-de-koonings-painting-from-theft-to-its-return-home.html | https://www.cnbc.com/2022/09/16/woman-ochre-de-koonings-painting-from-theft-to-its-return-home.html |
Wars and Military Conflicts
Soldiers drive a "Marder" infantry fighting vehicle of the German armed forces Bundeswehr during the informative educational practice "Land Operation Exercise 2017" at the military training area in Munster, northern Germany.
In April, Germany promised to give Leopard tanks and Marders to Ukraine. Rather than deliver them directly, it proposed a swap scheme. The intention was that NATO members, Poland or Slovakia for example, could send Ukraine older Soviet-era tanks (such as Leopard 1s), and Germany would then replenish their stocks with its own more modern equivalent weapons (such as Leopard 2s).
Germany justified the proposal to send older weapons by saying Ukraine's forces were used to Soviet-era weapons, and that it should only supply weapons they know how to use.
One of the arguments is that they are afraid of further escalation β but that's an invalid argument because it's like, an escalation to what? It's bad enough as it is.
Yuri Sak
Ukrainian defense ministry official
"If they're afraid of some nuclear strikes or some other attacks on the nuclear power plant in Zaporizhzhia, which could result in major tragedy, it's another story but as far as the situation on the battlefield is concerned, we don't understand the logic behind it. It could be some internal political games as well," he noted.
Ukraine's need for more weapons comes as the war enters what could be a definitive phase in which the balance shifts in Kyiv's favor.
Russia was seen to have been taken by surprise by Ukraine's latest counterattacks, having redeployed some of its most effective fighting units to southern Ukraine after Kyiv signaled over the summer it would launch a counteroffensive to retake Kherson. | 2022-09-16T06:39:34Z | www.cnbc.com | Ukraine slams Germany for failing to send it weapons | https://www.cnbc.com/2022/09/16/ukraine-slams-germany-for-failing-to-send-it-weapons.html | https://www.cnbc.com/2022/09/16/ukraine-slams-germany-for-failing-to-send-it-weapons.html |
The bear market has more room to run, according to Bernstein analyst Ann Larson. So far, the U.S. stock market 's downturn has lasted nine months and there have been four bear market rallies, the firm pointed out in a note Tuesday. While the summer upswing had some wondering if relief was in sight, stocks tumbled on Tuesday, suffering their worst day since June 2020 after inflation numbers came in higher than expected. The S & P 500 , which hit a low of 3,636.87 on June 17, is still down more than 17% year to date. There are three key reasons why there will be more pain ahead, Larson said. To come up with her thesis, she analyzed sell-offs going back 85 years. For one, most major global downturns ended with a moderate inflation/low-growth regime. In addition, return correlations of major global markets with U.S. markets have been increasing, which typically coincide with big market drawdowns. Lastly, hopes for a more accommodative Federal Reserve have been dashed. "Powell's speech at Jackson Hole and the most recent CPI print likely indicate that a Fed pivot is off the table anytime soon, making markets more vulnerable to rate hikes and growth concerns," Larson wrote. Bernstein studied bear markets dating back to 1937. It defined bear markets loosely, with sell-offs between 15% and 20% rather than the traditional 20%, so that it could study more periods. In addition to the average 28% drop, it found that the downturns lasted an average seven months, with an average three bear market rallies. The longest bear market lasted 25 months during the dotcom recession in the early part of the century, and had eight rallies. The shortest downturns were during a recession ignited by the Iran revolution and former Fed Chairman Paul Volcker's inflation fight in the early 1980s, and Covid in 2020, both of which lasted just two months. That said, there are a few reasons to be optimistic, Larson said. If the U.S. is at or near peak inflation, that has historically led to positive S & P 500 returns over a 12-month horizon, she noted. "In addition, current consumer sentiment is at lower levels than we saw even during the global financial crisis, and troughs in consumer sentiment in the past have been buying opportunities one year out," Larson said. However, a recession could complicate matters. Since 1955, the S & P 500 has dropped 13% when leading economic indicators are pointing to a recession, as they are today, she said. Since 2000, that drop has averaged 35%. β CNBC's Michael Bloom contributed reporting. | 2022-09-16T07:32:24Z | www.cnbc.com | Bernstein lists a number of reasons why this bear market has more room to run | https://www.cnbc.com/2022/09/14/bernstein-lists-a-number-of-reasons-why-this-bear-market-has-more-room-to-run.html | https://www.cnbc.com/2022/09/14/bernstein-lists-a-number-of-reasons-why-this-bear-market-has-more-room-to-run.html |
Ford's plans to sell EVs have been a point of contention since the company split off its all-electric vehicle business earlier this year into a separate division known as Model e. Farley said the automaker and its dealers needed to lower costs, increase profits, and deliver better, more consistent customer sales experiences.
"There's too much uncertainty. We don't think it's fair to force them to go on the EV journey or force them into a buyout," Marin Gjaja, chief customer officer of Ford's Model e electric vehicle business. "We think it's really uncalled for because they have a healthy and strong, growing business. β¦ We want them to have the choice."
About 90% of the upfront investment costs are expected to be for installation of EV chargers, including DC fast chargers that can cost $300,000 or more, according to Gjaja. Only a few dozen of Ford's 2,991 dealers currently have the high-speed chargers, he said.
Tim Hovik, a dealer in Nevada who heads the Ford national dealership council that represents the company's franchised retailers, said the plans have been well received.
Why Ford's Mustang EV is dethroning its competitors | 2022-09-16T07:33:27Z | www.cnbc.com | Ford asks dealers to invest in EVs as it chases Tesla-like profit | https://www.cnbc.com/2022/09/14/ford-outlines-ev-investment-structure-for-its-dealers-as-it-chases-tesla-like-profit.html | https://www.cnbc.com/2022/09/14/ford-outlines-ev-investment-structure-for-its-dealers-as-it-chases-tesla-like-profit.html |
Kevin O'Leary: 'Quiet quitting' is the dumbest idea I've ever heard
Half of those who are now earning more still say their pay hasn't kept up with rising costs. Yet 39% said the increase either kept up with or exceeded the rise in household costs.
Instead, workers were likely to secure more pay for other reasons. That includes 36% who received a performance-based raise, 16% who got a promotion or new responsibilities, and 10% who cited other reasons such as contract or seniority.
Investments in additional training, certification or educational attainment could pay off quickly in an economic downturn. | 2022-09-16T07:33:39Z | www.cnbc.com | 55% of working Americans say their pay isn't keeping up with inflation | https://www.cnbc.com/2022/09/14/half-of-working-americans-say-their-pay-isnt-keeping-up-with-inflation.html | https://www.cnbc.com/2022/09/14/half-of-working-americans-say-their-pay-isnt-keeping-up-with-inflation.html |
Investors are piling on bets against Urban Outfitters . Data compiled by FactSet showed that short interest on the retail stock rose 18% to 14 million shares, or about 27% of the overall float, through the end of August. The float refers to the stocks available for trading. Urban Outfitters shares have been on fire in the third quarter, up 14% in that time. However, the stock has been hit hard in 2022, losing 27% and lagging the broader market. Another stock that saw its short interest tick up was MicroStrategy , which now has 34% of its float being shorted. The cloud software company (and bitcoin proxy) is up about 40% in the third quarter, but has lost 57% year to date. Meanwhile, short interest in meme stock Bed Bath & Beyond . As of the end of August, 40% of the float was being shorted. Bed Bath & Beyond shares are down 11% in September. However, the stock is still up nearly 70% in the third quarter. Short-selling is a bet against a stock practiced mostly by hedge funds and involves borrowing shares and selling them in order to buy them back more cheaply, profiting from the difference. Check out below the full list of heavily shorted stocks. (Note: The table below includes stocks traded on the NASDAQ or NYSE exchanges with short interest greater than 25% of their total float and at least $100 million in market cap. Short interest data is updated twice a month and reported mid-month and at the end of the month. These figures are current as of Aug. 31 as reported by the exchanges, via FactSet. The next release date is Sept. 26 for short interest data as of Sept. 15). | 2022-09-16T07:33:45Z | www.cnbc.com | Here are the stocks most heavily shorted on Wall Street, including this underperforming retailer | https://www.cnbc.com/2022/09/14/here-are-the-stocks-most-heavily-shorted-on-wall-street-including-this-underperforming-retailer.html | https://www.cnbc.com/2022/09/14/here-are-the-stocks-most-heavily-shorted-on-wall-street-including-this-underperforming-retailer.html |
Hereβs what Gundlachβs watching in the yield curve, the βgranddaddyβ of recession indicators
Jeffrey Gundlach, CEO of DoubleLine, is watching the Treasury yield curve as a primary harbinger of recession β and he warns that a downturn is almost assured if it inverts past a certain level. A yield-curve inversion occurs when yields on short-term U.S. Treasury bonds are higher than those of longer-term Treasurys. Bond yields move inversely to prices. "I'm waiting for the 2s/10s to invert by 50 [basis points]," Gundlach told CNBC in an interview on the sidelines of the Future Proof wealth conference in Huntington Beach, Calif., referring to yields on U.S. 2-year Treasury bonds and 10-year Treasurys. "5s/30s finally reinverted again," Gundlach added, referring to 5-year and 30-year Treasury bonds. "That might get to like 25 [basis points]." "I think at that level, it's almost assuredly on the edge of a coming recession," he said. While both of those respective parts of the yield curve are inverted, they haven't yet reached Gundlach's stated thresholds. The 2-year and 10-year spread was inverted by about 37 basis points (or 0.37%) as of 1:33 p.m. ET on Wednesday. The spread between the 5-year and 30-year was about 11 basis points (or 0.11%). Bond yields had climbed on Tuesday as stocks sold off sharply after a hotter-than-expected inflation report . Spreads on Treasury yields narrowed. On Wednesday, even as stocks recovered, the yield on the 2-year Treasury β the part of the curve that's most sensitive to the Federal Reserve's policy β was still higher than those of the 5-, 10-, and 30-year notes. Gundlach is watching for a "massive sell-off at the short end [of the yield curve] and the long end doing almost nothing. That's a real sign that you're getting very late, late cycle." He called the yield curve "the granddaddy" of recession indicators, during a Q & A with CNBC's Scott Wapner. "I think the chance of recession in 2023 is really quite high," Gundlach told Wapner. | 2022-09-16T07:33:51Z | www.cnbc.com | Hereβs what Gundlachβs watching in the yield curve, the βgranddaddyβ of recession indicators | https://www.cnbc.com/2022/09/14/heres-what-gundlachs-watching-in-the-yield-curve-the-granddaddy-of-recession-indicators.html | https://www.cnbc.com/2022/09/14/heres-what-gundlachs-watching-in-the-yield-curve-the-granddaddy-of-recession-indicators.html |
Here's why Warren Buffett has been so successful, 'Psychology of Money' author says
Published Wed, Sep 14 20227:24 AM EDT Updated Thu, Sep 15 202210:37 AM EDT
There's a very simple reason why billionaire investor Warren Buffett has been so successful, according to "Psychology of Money" author Morgan Housel. It's because he's been in the game for so long, Housel told CNBC's Bob Pisani on Tuesday on the sidelines of the Future Proof conference in Huntington Beach, California. In fact, "99% of Warren Buffett's net worth was accumulated after he was 65 years old," he said. "The real lesson, if you look at his net worth, is that it is just the amount of time he's been doing it for," Housel added. "If Buffett had retired at age 65, you would have never heard of him." The takeaway is that investors should change their mindset. Most think about how they can earn the highest returns, when in fact they should really be thinking about the best returns that can be sustained for the longest period of time, he said. Buffett, who is worth more than $97 billion , recently turned 92. The Berkshire Hathaway CEO has spent the past year expanding his company's energy empire . Watch Pisani's full interview with Housel in the above video. | 2022-09-16T07:33:58Z | www.cnbc.com | Here's why Warren Buffett has been so successful, Morgan Housel says | https://www.cnbc.com/2022/09/14/heres-why-warren-buffett-has-been-so-successful-morgan-housel-says.html | https://www.cnbc.com/2022/09/14/heres-why-warren-buffett-has-been-so-successful-morgan-housel-says.html |
There's good news for the millions of people with federal student loans who've made payments on that debt during the Covid pandemic: many of them will be eligible to get the money back.
More than 9 million people made at least one payment on their federal student debt between April 2020 and March 2022, according to the government. The vast majority of borrowers haven't made any payments, taking advantage of the suspension of the bills and accrual of interest.
Requesting a refund can help you make sure you get the full amount of forgiveness for which you're eligible. Forgiveness is capped at the lower of your qualifying federal student loan balance or $10,000 ($20,000, if you got a Pell Grant).
Payments made since March 2020 on federal student loans eligible for the pause should now be refundable, said higher education expert Mark Kantrowitz.
The roughly 5 million student loan borrowers who have commercially held Federal Family Education Loans (FFEL) weren't eligible for the payment pause and won't be for the refund either.
Any payments made before the pandemic also don't qualify, Kantrowitz said. | 2022-09-16T07:34:16Z | www.cnbc.com | How to get refunds for student loan payments you made since March 2020 | https://www.cnbc.com/2022/09/14/how-to-get-refunds-for-student-loan-payments-you-made-since-march-2020.html | https://www.cnbc.com/2022/09/14/how-to-get-refunds-for-student-loan-payments-you-made-since-march-2020.html |
Railroad unions threaten to strike over conditions and unpaid leave
The meeting started just after 9 a.m. ET. A spokesperson for the Labor Department said talks were ongoing as of midday. "The parties are negotiating in good faith and have committed to staying at the table today," the representative said.
Walsh's involvement comes as the Biden administration prepares for a work stoppage. A strike, which could affect about 60,000 workers and idle more than 7,000 trains, could cost the U.S. economy more than $2 billion a day. On Wednesday, Amtrak said it would cancel its long-distance train service starting Thursday since it operates nearly all of its route miles on freight railroads.
Labor unions have begun distributing strike information to members in the event a deal can't be reached by the deadline. A person familiar with the negotiations said the step is "normal procedure to get union workers ready for a strike."
"This is not an indication a strike will indeed happen. This is a part of preparation procedures," said the person, who asked not to be named because they were not authorized to speak publicly about the efforts.
The Biggest Sticking Points Remaining in Critical Contract Talks Between U.S. Railroads and Labor Unions | 2022-09-16T07:35:43Z | www.cnbc.com | Railroad strike: Carriers won't lock out workers, negotiators meet with Labor secretary | https://www.cnbc.com/2022/09/14/railroad-strike-carriers-wont-lock-out-workers-negotiators-meet-with-labor-secretary.html | https://www.cnbc.com/2022/09/14/railroad-strike-carriers-wont-lock-out-workers-negotiators-meet-with-labor-secretary.html |
Ukraine President Volodymyr Zelenskyy said Wednesday that the country's armed forces were moving forward "towards victory" as he praised the return of the Ukrainian flag to recaptured territory.
Last night, the president said that "stabilization measures" have been put in place in the liberated towns and villages in northeast Ukraine, where a significant counteroffensive by Ukrainian forces took place in the last week, leading to the recapturing of hundreds of villages in the region.
U.S. Transportation Command says it will prioritize Ukraine aid
Steelworkers ride on a railroad switching engine at the Cleveland-Cliffs Inc. Cleveland Works steel mill in Cleveland, Ohio, US, on Wednesday, Aug. 17, 2022.
U.S. Transportation Command said it will prioritize aid to Ukraine to minimize the repercussions from a possible strike by rail workers, Politico reported.
Labor unions and railroad executives have until Friday to hammer out deals and avoid a shutdown that would snarl supply chains.
Rail is also important for the movement of military equipment. Army officials have estimated that two-thirds of equipment travels to shipping ports by rail when a unit is called into field.
Washington has provided Ukraine with billions of dollars worth of weapons and assistance in its fight against Russia's invasion.
Celebrity chef Jose Andres' humanitarian organization shares photos from the frontlines of Ukraine
The World Central Kitchen shared photos on Twitter from the frontlines of Ukraine's Donetsk region. Founded by celebrity chef and humanitarian Jose Andres, the organization sends teams to places around the world impacted by conflict or natural disasters.
"Located on the frontlines in the Donetsk Oblast, WCK delivered food kits to families and seniors in Bakhmut. With the constant threat of missiles, residents are living in basement bomb shelters," the organization wrote on Twitter.
The two-star Michelin chef has previously said that his organization has delivered more than 2 million food kits to Ukrainians since Russia's late February invasion.
USAID says more than 206,000 metric tons of Ukrainian grain headed to most food insecure countries
Samantha Power, Administrator of the US Agency for International Development (USAID), speaks during an event on "The State of Global Food Security and Nutrition," hosted by The Center for Strategic and International Studies (CSIS) and the Eleanor Crook Foundation in Washington, DC, on July 18, 2022.
USAID Administrator Samantha Power said that the U.N.-backed deal to reopen Ukrainian ports, more than 206,000 metric tons of agricultural products are headed to the world's most food insecure countries.
Power wrote that Ethiopia, Kenya, Somalia, Sudan and Yemen are some of the beneficiaries of the deal.
"USAID is supporting both agricultural production & exports like these, helping Ukraine feed the world," she wrote on Twitter.
Ukraine has exported 2.8 million metric tons of grains and other crops since ports reopened
The grain harvester collects wheat on the field near the village of Zgurivka in the Kyiv region, while Russia continues the war against Ukraine. August 9, 2022.
The organization overseeing the export of agricultural products from Ukraine said that more than 2.8 million metric tons of crops have left the besieged country since ports reopened in July.
The Joint Coordination Center, an initiative of Ukraine, Russia, the United Nations and Turkey, said that 129 vessels have so far left three Ukrainian ports.
Seven vessels depart Ukraine carrying 172,962 metric tons of agricultural products
The organization overseeing the export of agricultural products from Ukraine said it has approved seven vessels to leave the besieged country.
The ships are expected to depart Wednesday and are destined for Spain, Italy, Bangladesh and Turkey.
Pentagon awards Lockheed Martin and Raytheon a $311 million joint production contract for Javelin missiles
A serviceman of Ukrainian military forces holds a FGM-148 Javelin, an American-made portable anti-tank missile, at a checkpoint, where they hold a position near Kharkiv, on March 23, 2022.
The U.S. Army has awarded Lockheed Martin and Raytheon a production contract worth $311 million to replenish Javelin missile stockpiles.
The Javelin has sat on top of Ukraine's weapons wish list since Russia invaded the country in late February.
The U.S. has so far transferred more than 8,500 Javelins to Ukraine.
Earlier this year, President Joe Biden visited the heavily guarded Lockheed Martin compound in Troy, Alabama where the Javelin missile is produced.
The windowless facility is where more than 50,000 classified missiles were assembled and tested over the last 20 years before joining the U.S. military's colossal arsenal.
Sheikh Ahmed el-Tayeb, Grand Imam of Cairo's Al-Azhar Mosque greets Pope Francis during the plenary session of the VII Congress of the Leaders of World and Traditional Religions in Nur-Sultan, Kazakhstan, September 14, 2022.
Vatican Media | via Reuters
Pope Francis told the Russian Orthodox hierarchy and other faith leaders that religion must never be used to justify the "evil" of war, and asked at an outdoor Mass in Kazakhstan, "How many deaths will it take?" for peace to prevail in Ukraine.
Almost 5,000 Ukrainian soldiers undergo military training in the U.K.
Oleg (31) smiles as he holds the MBT-NLAW (Next generation Light Anti-tank Weapon) provided by the United Kingdom.
Almost 5,000 Ukrainian military servicemen have undergone military training in the U.K. with the participation of instructors from Canada, the Netherlands, New Zealand, Ukraine and Britain.
The military personnel "have gained basic knowledge, skills, and abilities in tactical medicine, engineering, live-fire, psychological, and tactical training, including in running offensive and defensive missions in an urban setting," the General Staff of the Armed Forces of Ukraine said in an update Wednesday.
The program, initiated by the U.K. government, is called 'Operation Interflex' which Ukraine's armed forces said was "one of the shining examples of international support of our state and convincing evidence that Ukraine is not alone in the fight against Russian aggression."
In the near future, the Interflex operation is set to expand to include the training of junior commanders of military units and units of the armed forces.
We're moving 'towards victory': Zelenskyy vows to keep up the momentum in counteroffensive
Ukrainian President Volodymyr Zelensky talks to a journalist after his joint press conference with Polish PM Mateusz Morawiecki and Latvian President Egils Levits on September 9, 2022 in Kyiv, Ukraine.
Ukraine's President Volodymyr Zelenskyy proclaimed Wednesday that "we are moving in only one direction β forward and towards victory" as questions are asked over whether the momentum in Ukraine's recent successful counteroffensives can be continued.
Reflecting on Ukraine's recent successes, which have seen it recapture over 3,000 square miles of Russian-occupied land, Zelenskyy said on Telegram:
"Earlier, when we looked up, we always looked for the blue sky. Today, when we look up, we are looking for only one thing - the flag of Ukraine," he said.
"Our blue-yellow flag is already flying in the de-occupied [town of] Izyum. And it will be so in every Ukrainian city and village. We are moving in only one direction β forward and towards victory."
Yuriy Sak, an advisor to Ukraine's Defense Minister Oleksii Reznikov, told CNBC Wednesday that the counteroffensives had gone better than even Ukraine expected.
"We hope this is a starting point," he said. "We're normally cautious about making any predictions, and it's always safer to say certain things after they occur, but anyway, what has happened is in many respects unexpected even for us," Sak added.
"Indeed, it was very successful campaign, the Ukrainian army was able to regain control over 8,000 square kilometers. That's a huge part of the territory that was temporarily occupied by the Russians and as a result, what we're seeing is that the Russian army is demoralized, its military capabilities are degraded."
Russian state media accidentally published and then quickly deleted an article claiming victory in Ukraine and declaring the beginning of a "new era," just two days after the Kremlin invaded in late February, The Atlantic said in a report on Monday.
The incident has taken on renewed significance in light of Ukraine's lightning offensive against Russian troops in Kharkiv, which Ukrainian President Volodymyr Zelenskyy said has successfully "liberated more than 6,000 square kilometers" of territory it had lost to the Kremlin.
"Russia's military operation in Ukraine has ushered in a new era," said the wrongly published article written by Petr Akopov, which was titled "The offensive of Russia and the new world."
"Russia is restoring its unity β the tragedy of 1991, this terrible catastrophe in our history, its unnatural dislocation, has been overcome," said the deleted article.
The 1991 "tragedy" article referred to is the dissolution of the Soviet Union.
Russia 'almost certainly' sourcing weapons from states like Iran and North Korea, UK says
Russia is "almost certainly" increasingly sourcing weapons from other heavily sanctioned states like Iran and North Korea as its own stocks dwindle, according to the latest intelligence update from Britain's Ministry of Defense.
It said on Twitter Wednesday it's highly likely that "Russia has ... deployed Iranian uncrewed aerial vehicles (UAV) in Ukraine for the first time."
On Tuesday, Ukrainian officials reported that their forces had shot down a Shahed-136 UAV near Kupiansk, in the area of Ukraine's successful ongoing offensive in Kharkiv.
"The Shahed-136 is a one-way attack UAV with a claimed range of 2,500 kilometres. Similar Iranian-manufactured systems have likely been used in attacks in the Middle East, including against the oil tanker MT MERCER STREET in July 2021," the ministry noted.
Yesterday, the Pentagon said it was not able to determine the impact of Russia's use of Iranian drones on the battlefield in Ukraine.
Last month, U.S. National Security Council spokesperson John Kirby confirmed that Russia had received the drones but said it was "too soon to tell" how the new weapons would shape the combat. | 2022-09-16T07:35:55Z | www.cnbc.com | Live updates: Latest news on Russia and the war in Ukraine | https://www.cnbc.com/2022/09/14/russia-ukraine-live-updates.html | https://www.cnbc.com/2022/09/14/russia-ukraine-live-updates.html |
This top-performing mid-value fund has gained 3% this year. Here's what stocks it bought lately
The top-ranked mid-cap value fund has beat the broader market by staying true to its investment strategy, according to data from Morningstar. The Clarkston Partners Fund (CFSMX) has gained more than 3% year-to-date, outperforming the broader market and its investment category and index per Morningstar. It's ranked in the top quartile against the more than 400 other mid-cap value funds covered by Morningstar, which describes it as a fund with a "sound investment process and strong management team." It's been a difficult year to find any funds with positive performance as stocks and bonds are both in bear markets. The S & P 500 has shed about 17% in 2022. The Bloomberg Global Aggregate Index, a fixed income benchmark, also fell into a bear market. Strategy Clarkston Capital, the Rochester, Michigan-based firm that manages the Clarkston Partners Fund, invests in a small number of high-quality businesses and seeks to promote longevity and attractive economics across the portfolio, according to a quarterly report from the fund. "Our 'absolute value' framework is intended to enforce disciplined pricing decisions and downside mitigation regardless of valuation multiples and the relative performance of broader indices," the firm noted in the June report. "We believe this approach leads to idiosyncratic returns that often differentiate our portfolios from those of our peers and from the larger market." These are "returns that occur independently and purely as a function of a business's operations and capital allocations," according to the fund. Clarkston Partners Fund's outperformance this year is welcome. By the end of 2021, the fund had had a few years of being at the bottom of rankings for its investment group and underperforming its benchmark. "While these results met our absolute objectives internally, we never relish appearing weaker in strong markets," the firm said in the fund's quarterly report. "The first half of 2022, however, has reminded investors that strong markets do not last forever." In this year's choppy bear market, however, the fund has outperformed. Names like Post Holdings and Change Healthcare contributed to its second quarter gains. Clarkston Partners Fund's current portfolio is heavy in consumer defensive and financial services names, according to Morningstar. It also has low exposure to consumer cyclical and energy stocks, compared to other similar funds. It's also a top-heavy fund. "Of the strategy's assets, 60.8% are concentrated within the top 10 holdings, as opposed to the category's 16.2% average," Morningstar says in its analysis of the fund. "And in closing, in terms of portfolio turnover, this fund trades less frequently than the category's average, potentially limiting costs to investors." The fund is less expensive than its peers β it is priced within the second-cheapest fee quintile against other similar funds, Morningstar found. It has an adjusted expense ratio of 0.85%. What it's picked up lately The fund hasn't bought many new stocks in the last few months but has added to positions of stocks it already owns. This year, it's pared back on holdings it considers fully valued and has used proceeds to buy more stocks trading at attractive prices. For example, the firm trimmed its position in media company Nielsen Holdings by roughly 57%. Shares are up about 35% in 2022. The fund has also picked up more shares of stocks trading at a discount such as waste disposal company Stericycle , which is down 15% this year. This is a way to set up the fund for long-term growth. "Short-term price movements matter little to us beyond the opportunities they provide to buy and sell shares," the fund's quarterly commentary noted. "Our goal is to compound wealth over the long term, and we continue to believe that the best method to achieve this goal is through consistent application of our Quality Value investment approach." | 2022-09-16T07:36:58Z | www.cnbc.com | This top-performing mid-value fund is buying these stocks this year | https://www.cnbc.com/2022/09/14/this-top-performing-mid-value-fund-is-buying-these-stocks-this-year.html | https://www.cnbc.com/2022/09/14/this-top-performing-mid-value-fund-is-buying-these-stocks-this-year.html |
Biden may soon put a floor on sinking oil prices. Thatβs good for our energy stocks
U.S. oil prices have been sliding in fits and starts since June, but the Biden administration may be ready to flip from being a seller to a buyer of crude to replenish the nation's Strategic Petroleum Reserve . The SPR, which has been releasing 1 million barrels per day of supply since March, has been depleted to levels not seen in nearly 38 years. When the government decides to start buying, oil prices could get some nice support, which would be good for our energy holdings. Speculation about the U.S. restocking its emergency oil supplies swirled this week around two bits of news. First, the U.S. Department of Energy said the SPR, with an authorized storage capacity of 714 million barrels, is down to 434.1 million barrels, reaching its lowest levels since October 1984. Second, unnamed Bloomberg sources said the White House is considering buying crude to refill the SPR around $80 per barrel, which could serve as kind of a floor in the market. When a player like the U.S. government goes from supplier to buyer, its a pretty positive sign for those that benefit from higher oil prices. Depending on the pace of purchases, the net effect would be to soak up over 1 million barrels per day from the global supply β the 1 million no longer being supplied plus whatever they buy to replenish the SPR. West Texas Intermediate crude on Thursday was around $88 per barrel. WTI was over $120 in June and over $130 in March after Russia invaded Ukraine. Hoping to put a cap on gasoline prices, the Biden administration in March agreed to release 180 million barrels of oil from the SPR over a six month period. Shortly after that announcement, international allies in early April committed a 60 million barrel emergency release program . Gas prices soared to record highs anyway to over $5 per gallon in June. But since then, prices at the pump have eased along with crude, which has helped offset inflationary pressures in other parts of the economy. When the U.S. decides to get its reserve capacity closer to where it was before Russia's unprovoked war against Ukraine disrupted world energy supplies, that could lift oil prices, or at the very least stem the decline. That would be a potential catalyst for Club holdings Coterra Energy (CTRA), Devon Energy (DVN) and Pioneer Natural Resources (PXD), which have seen their stocks fluctuate with the up-and-down action in crude prices. Bottom line Higher WTI prices mean more free cash flow for our energy companies, which have breakeven ranges well below the $80 support level that the U.S. is said to be thinking about buying at. That leaves ample room for our energy stocks to keep generating high levels of cash and providing resilient dividends to shareholders. Remember, the variable part of the dividend payments that all three companies pay are tied directly to free cash flow generation. Coterra's free cash flow breakeven is about $40 per barrel as of its second quarter results. In August , when reporting those results, the board announced a quarterly fixed-plus-variable dividend of 65 cents per share, up 8.3% from its prior level of 60 cents per share. That's 8.1% on an annualized basis based on Wednesday's closing price. Earlier this year, during its earnings call in February, management at Devon mentioned its breakeven levels are around $30 per barrel. Management said in August in its quarterly results that strong cash flow realized in the second quarter allowed management to announce a 22% raise to the company's fixed-plus-variable dividend payout, to $1.55 per share. That's 8.6% on an annualized basis. Pioneer cites its ability to keep its high dividends as one of the highest yields in the S & P 500 through its resilient free cash flows. It returned over 95% of its fiscal second-quarter free cash flow via dividends and buybacks. The increase to the company's fixed-plus-variable dividend went to $8.57 per share . That's 13.6% on an annualized basis. We keep energy holdings in our portfolio as a hedge against concerns of persistently high inflation, for their high dividends, durable free cash flow and for the sector's outperformance of the broader market. Energy has been one of the best performing sectors this year with the S & P 500 Energy Sector Index up almost 50% year-to-date, far outpacing the S & P 500's 17% fall for 2022 so far. Moreover, European natural gas shortages could also benefit U.S. energy companies for the remainder of 2022 and the foreseeable future. That's something we recently wrote about when nat-gas prices were hitting record highs. Keep in mind, if the U.S. comes in and buys oil around the $80 level, it's not a given that oil prices stay this high, especially in a recession scenario. Oil prices have gone well below their $80 levels in the past. In July 2021, U.S. oil prices fell below $70 after OPEC said it would increase output as Covid fears weighed on global demand. So, we still must protect our portfolio in the event of an oil price decline. That is why we've been strategic in selling some energy names into strength to book some profits and manage our energy exposure. Recently, we exited Chevron on Sept. 7 and pared back some of our Devon shares on Sept. 6. We are still bullish on these holdings throughout the rest of the year, but we have to stay true to our disciplined strategy of not being overexposed to any single stock or sector. (Jim Cramer's Charitable Trust is long CTRA, DVN and PXD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
US President Joe Biden announces that the United States will be releasing a record amount of oil from the US strategic oil reserves to help bring down the cost of oil in the South Court Auditorium, next to the White House, in Washington, DC, on March 31, 2022. | 2022-09-16T07:38:50Z | www.cnbc.com | Biden may soon put a floor on sinking oil prices. Thatβs good for our energy stocks | https://www.cnbc.com/2022/09/15/biden-may-soon-put-a-floor-on-sinking-oil-prices-thats-good-for-our-energy-stocks.html | https://www.cnbc.com/2022/09/15/biden-may-soon-put-a-floor-on-sinking-oil-prices-thats-good-for-our-energy-stocks.html |
Danaher 's (DHR) announcement this week that it will spin off its growing water business is a big win for shareholders β including us at the Club. The medical diagnostics and health technology company has a great track record for creating shareholder value through both organic investments and strategic mergers and divestitures. This is another smart move. Danaher (DHR) will separate its Environmental & Applied Solutions, or EAS, business segment as a separately traded public company. EAS provides instruments and software to businesses and utilities to test water quality. The spin-off allows the two businesses to increase focus on their respective end markets. It also frees up capital at Danaher for additional growth investments (organic or via M & A) while allowing both companies to trade on pure-play multiples. Danaher can focus more on science and technology, while the newly formed company can better tap into the fast-growing need for clean water. Fifty-five percent of EAS revenue is recurring. The separation is expected to be tax-free to current shareholders and finalize in the fourth quarter of 2023. Since the announcement Wednesday, shares of Danaher were up 2% in a down market. "I do think this [DHR] should be up more on this news," said Jeff Marks, director of portfolio analysis at the Investing Club, during the "Monthly Meeting." "This is just textbook Danaher. The company has a rich history of spinning high-quality assets that are more cyclical compared to their core life science, biopharma business." Danaher in 2016 spun out industrial conglomerate Fortive (FTV), which at the time consisted of Danaher's Test & Management segment. In 2019, it spun out Envista (NVST), which had consisted of Danaher's dental segment. In both cases, after an initial growth hit due to the divestitures, we saw a notable sales growth acceleration once these slower growth business were on their own. For example, sales growth averaged about 4.1% from 2013 to 2015, dipped in 2016 due to the separation and then accelerated to about 8.5% in 2017 and 2018 before the Envista spin-off. Then following that spin-related decline in 2019, sales again accelerated to 24.4% in 2020 and 32.2% in 2021; some of that was likely also due to the benefit off pandemic related testing revenue. "I think there's going to be a lot of appeal for this new business," added Marks. "It is high quality. It is an industry leader in what it does. That's really why I think this transaction, it's going to be a win-win for shareholders. Shedding a slower-growing asset, a lower-margin asset, that should allow for Danaher's price to earnings multiple to expand." More good news: Danaher's management team said 2022 core revenue growth is expected to be above the prior guidance range thanks higher-than-anticipated respiratory testing revenue at Cepheid. It's now expected to exceed $500 million in the third quarter, up from the roughly $325 million management assumed in its prior guidance. Base business core revenue growth is still expected to be up in the high-single-digit range. Bottom line This spin-off is welcome news for long-term investors and a move that enhances the company's sales and earnings profile in the long run. Indeed, in the company's investor slide presentation , management said they think that in 2024 and beyond, the Life Sciences and Diagnostics businesses can both grow core revenue at high-single-digit rate. Whereas, they think EAS has a longer-term core revenue growth profile in the mid-single-digit range. The remaining company is also expected to generate about 80% recurring revenue (think consumables that requirement constant replacement), lower revenue volatility, free cash flow in excess of net income and double-digit earnings growth. If not for the weakness we are seeing in the broader market, we would expect shares to be up more on the news. (Jim Cramer's Charitable Trust is long DHR. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
In this photo illustration, Danaher Corporation logo is seen displayed on a smartphone and PC screen. | 2022-09-16T07:39:57Z | www.cnbc.com | Danaher's decision to spin off water unit a win-win for long-term investors | https://www.cnbc.com/2022/09/15/danahers-decision-to-spin-off-water-unit-a-win-win-for-long-term-investors.html | https://www.cnbc.com/2022/09/15/danahers-decision-to-spin-off-water-unit-a-win-win-for-long-term-investors.html |
Disney CEO wants to add sports betting to ESPN β a move we've long called for
Disney (DIS) has grand plans to innovate at ESPN, including better integration with sports betting, CEO Bob Chapek told CNBC in an interview that aired Thursday. Sports betting has been largely an untapped area of opportunity for ESPN, and we've long thought that Disney should be doing a better job capitalizing on what the dominate sports network brings to the table with its brand and its reach. As for when consumers might see those plans in full, the timing is up in the air, according to Chapek, who also discussed potential cost-cutting measures across the company and the future of its co-owned streaming property Hulu (CNBC's parent Comcast owns one-third). ESPN Disney's intentions with ESPN have been in the news lately because activist investor Dan Loeb over the weekend reversed course on calling for the sports giant to be spun out . While we believe Disney's business is currently doing much better than its recent stock performance suggests, we also are very interested in the long-term vision for ESPN. We see untapped value. "We don't have an exact timetable right now because it depends how fast these things evolve. But we're really pleased with some of the conversations that we've had throughout the industry in terms of what's the future of sports, and how do we have a step function in the consumer experience, so that it's not just sort of your father's old sports experience, but something that's bigger and greater," Chapek told CNBC's David Faber, emphasizing the role that technology can play to "advance" the sports storytelling and to deliver personalized viewing experiences. Sports gambling, which in recent years has been legalized by an increasing number of states, also appears to be a key part to ESPN's future. Chapek said Disney does not plan to launch its own sportsbook, meaning it would take bets itself and issue payouts. However, he thinks the company β which owns broadcast rights to major professional and collegiate sports β can find a third-party betting firm to help deliver a "seamless integration." "One of the things [sports fans] want is the ability to have a frictionless sports betting potential with not having to have four screens in front of you," Chapek said. "We, as ESPN, have the ability to do that. Now we're going to need a partner to do that because we're never going to be a book. That's never in the cards for the Walt Disney Company." Reducing costs Disney has needed to spend heavily to grow its streaming platforms, especially flagship Disney+, which has turned in impressive subscriber growth since launching in November 2019. It ended its fiscal third quarter with 152.1 million subscribers, and an advertising-supported tier is on the way as the company seeks to reduce the streaming service's operating loss. Disney's SG & A-to-sales ratio was 19.1 at the end of the third quarter, according to FactSet. That's up from 16.6 in the same quarter in 2019, before the pandemic. An SG & A-to-sales ratio is calculated by dividing a company's selling, general, and administrative expenses by its sales. While the definition "good" ratio depends on the industry, a lower number is better. Chapek said Disney is focused on reducing costs across the company now that the most severe Covid-related impacts to its business are over. This is welcome news because we want Disney to have more cash available to clean up its balance sheet. "There's absolutely an opportunity there, an opportunity that's been underway for several months as we've now come out of the pandemic because, remember, Disney was one of the companies that was probably the hardest hit by the pandemic, and restarting the business was the focal point," Chapek said. "But now that the business has restarted, and restarted so strongly, with the strength not only of streaming, but of parks as well, we are now focused on the maintenance of the business, the running of our business," he added. "We're asking ourselves a lot of hard questions coming out of the pandemic [like] what does this SG & A world have to look like? Not relative to what it used to be, but in the modern era. [CFO Christine McCarthy] and I are ... arms locked on going and making big progress against that." Hulu While Loeb has changed his mind on ESPN, one idea the respected activist investor continues to push is Disney owning the entirety of Hulu so it can improve its streaming bundle. Disney has an option to buy Comcast's 33% stake in the streaming service as early as January 2024. It's worth noting that of Disney+, ESPN+ and Hulu, the only one that's currently profitable is Hulu. "As [2024] becomes more and more imminent, probably the chances of a Hail Mary pass coming in that enables all of us to kind of come to an earlier resolution of this is probably less than less," Chapek said. "I would like nothing more than to come up with that solution for an early agreement. But that takes two parties to come up with something that is mutually agreeable." Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. (Jim Cramer's Charitable Trust is long DIS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. | 2022-09-16T07:40:21Z | www.cnbc.com | Disney wants to add sports betting to ESPN β a move we've called for | https://www.cnbc.com/2022/09/15/disney-wants-to-add-sports-betting-to-espn-a-move-weve-called-for.html | https://www.cnbc.com/2022/09/15/disney-wants-to-add-sports-betting-to-espn-a-move-weve-called-for.html |
A Frontier Airlines airplane taxis to a gate at Denver International Airport in Denver, Colorado, U.S., on Monday, Feb. 7, 2022.
Frontier Airlines "recently" held discussions with SpaceX about adding its Starlink satellite internet service to its planes and is more hopeful about adding such a product than in previous years, the carrier's CEO told CNBC on Thursday.
Adding Starlink's Wi-Fi would be a departure for the budget carrier, which doesn't currently offer inflight internet service. CEO Barry Biffle says skipping Wi-Fi for now allows the airline to be more "green" because it limits weight on board.
Most major U.S. airlines offer Wi-Fi on board for a fee, though many are trying to improve the quality and lower the cost.
Elon Musk's SpaceX is currently building its Starlink broadband network, which includes more than 3,000 satellites in orbit so far and has around 500,000 total customers β most of whom are individual consumers.
Starlink signed its first deal to provide inflight internet with a major carrier in April with Hawaiian Airlines, a service that carrier said would be complimentary for passengers.
β Leslie Josephs reported on this story from Washington, and Michael Sheetz reported from Paris. | 2022-09-16T07:41:04Z | www.cnbc.com | Frontier Airlines recently held talks with SpaceX about adding Starlink Wi-Fi | https://www.cnbc.com/2022/09/15/frontier-airlines-recently-held-talks-with-spacex-about-adding-starlink-wi-fi.html | https://www.cnbc.com/2022/09/15/frontier-airlines-recently-held-talks-with-spacex-about-adding-starlink-wi-fi.html |
While most 401(k) investors simply set it and forget it when it comes to their retirement savings, there are some who take the extra step of choosing their own investments. They participate in what's known as a self-directed brokerage account, which is part of their employer-sponsored plan. These brokerage windows offer a wider selection of mutual funds to employees, as well as individual stocks. Not all plans offer the option and even when they do, not many participate. For instance, 21.5% of Fidelity's 401(k) plans provide the brokerage window, yet only 3.3% of those with access are investing within it. Schwab breaks it down to about 5% to 10% participation in the windows across the industry. Those who do invest 401(k) money in a brokerage window are typically older employees who have a slightly higher salary than their coworkers, said Mike Shamrell, vice president of thought leadership at Fidelity. They've also been described as more "sophisticated" participants, with higher compensated employees gravitating toward the offerings. Participants making more than $250,000 a year have a 10% participation rate in these brokerage windows, according to Fidelity. Many also have a financial advisor who helps them manage their investments. About half of Gen X employees who have a Schwab Personal Choice Retirement Account also have a financial advisor, said Nathan Voris, director of investments, insights and consultant services at Schwab Retirement Plan Services. "Another reason is that folks that are just a little bit more engaged and want to take a little bit more ownership of their investments," he said. The average balance in Schwab's self-directed brokerage account was $283,485 in the second quarter, down by 18.58% from a year ago and down 14.62% from the first quarter. However, that doesn't necessarily represent the overall 401(k) account balance for a saver, since participants can put just a portion of their contributions into a brokerage window. Trading volumes were also lower at an average 11.2 trades per account versus 13.7 in the first quarter. So where are those who are taking advantage of the window putting their money to work? Fidelity and Vanguard don't break it down. However, individual stocks made up the largest holding of Schwab's account participants, at 33.23% of their assets in the second quarter. Mutual funds were the second largest holding, at 28.77% and exchange-traded funds were 20.9%. Cash and equivalents were at 15.18% and fixed income was 1.9% Apple was the top stock holding. The top mutual fund holding was the Schwab S & P 500 Index Fund , followed by the Schwab Total Stock Market Index . The top two ETFs were Vanguard Total Stock Market Index Fund and the SPDR S & P 500 . Gaining steam There has been a trend towards more employers adding brokerage windows into their plans. Fidelity has seen about a 5% increase in offerings in 401(k)s and 403(b)s since 2017, Shamrell said. Yet, the participation rate has remained flat, at around 3%. Jania Stout, senior vice president of retirement and wealth at Atlanta-based OneDigital, has also noticed an uptick in interest from employers. Younger workers, who came into investing during the pandemic, have started asking for the option in their plans, she said. "People seem to be a little more tolerant of risk and so they might want to invest in riskier assets, more international investment options, more small-cap, mid-cap [stocks] than you are generally seeing in a 401(k) lineup," Stout said. In particular, she's seeing a lot of interest from employers in giving access to funds that incorporate environmental, social and governance themes and, from time to time, crypto. Again, it's because younger workers want those options, she said. Another reason to add ESG into a brokerage window is because current policy, from the Trump administration, restricts the offerings in 401(k) plans, said Bonnie Treichel, chief solutions officer at Endeavor Retirement. By putting these in self-directed brokerage accounts, employers can avoid them in their core menus and still offer the investment to employees. "The brokerage windows are going to be added more frequently," she said. "It creates a risk that you can have less sophisticated participants using the brokerage window now more than ever." What to know If you want to take advantage of a brokerage window, the first thing you should do is check to see if your employer even offers the option, said Fidelity's Shamrell. It's also important to remember that the investments are part of your retirement plan. "We continue to encourage people to take that long-term approach and not see it as an active trading platform," Shamrell said. Also understand what fees are involved and how much you want in the self-directed brokerage portion of your retirement plan. Indeed, some recordkeepers do charge extra fees for access to a brokerage window, and this is in addition to underlying investment expenses, said Treichel. Also, employers often add guardrails around the accounts, like limiting the percentage of your plan assets in the window, she said. Lastly, seek advice from an expert before you invest, Stout advised. "I do not recommend that you enter on your own without some kind of guidance or advice from a financial professional, unless you are dedicating hours a week to study and research and doing modeling," she said. "Most employees don't have that kind of time or focus." | 2022-09-16T07:41:23Z | www.cnbc.com | Here are the investments sophisticated 401(k) participants are buying | https://www.cnbc.com/2022/09/15/here-are-the-investments-sophisticated-401k-participants-are-buying.html | https://www.cnbc.com/2022/09/15/here-are-the-investments-sophisticated-401k-participants-are-buying.html |
How the top financial habits of 'super savers' can help you 'build the most wealth'
In addition to good financial habits, this group also views the current down market as an opportunity to buy stocks at a cheaper price.
While the idea of becoming a super saver may seem daunting, experts say that small changes in habits and lifestyle can go a long way in helping workers boost contributions.
They also have taken steps to shift their money mindset. Many (69%) also don't worry about "keeping up with the Joneses," so to speak, and more than half don't lose sleep over their finances (56%).
Stock market volatility has not scared off super savers, either: Nearly three-quarters of them consider the current market environment a buying opportunity β one in which they can buy shares at a discount.
This view comes in the midst of the major indexes being down by double digits this year. Through Wednesday's close, the S&P 500 had slid 17.2%, the Dow Jones Industrial Average was off 14.4% and the tech-laden Nasdaq Composite had lost 25%.
Small changes in habits can boost savings
If boosting retirement savings on a regular basis is tricky with your current budget, try stashing away the occasional extra money that comes your way, such as a birthday gift or some of your tax refund.
"Drop surprise cash into a retirement account," Hauer advised.
In 2022, workers can stash a maximum of $20,500 in their 401(k), with those age 50 or older allowed an extra $6,500 in so-called catch-up contributions (for a total of $27,000). For individual retirement accounts, the 2022 contribution limit is $6,000 (with an extra $1,000 allowed as a catch-up amount). | 2022-09-16T07:41:29Z | www.cnbc.com | How financial habits of βsuper savers' can help you build wealth | https://www.cnbc.com/2022/09/15/how-financial-habits-of-super-savers-can-help-you-build-wealth.html | https://www.cnbc.com/2022/09/15/how-financial-habits-of-super-savers-can-help-you-build-wealth.html |
Want higher returns? Kevin O'Leary says put your money in 'harm's way' β and shares his stock picks
U.S. stocks saw a sharp sell-off on Tuesday as investors assessed the implications of a hotter-than-expected August inflation report. Market watchers are now bracing themselves for a 75 basis point hike at the Federal Reserve meeting next week, with Nomura having a more bearish view of a full percentage point hike. Billionaire investor Kevin O'Leary is also predicting a hike of 75 basis points, though he thinks it will "most likely" be a 100 basis point one. "It was assumed only 48 hours ago that the Fed's terminal rate would be 4%. And that would be the maximum in terms of rate hikes, but we're past that now," O'Leary, who is chair of O'Shares Investments, told CNBC's " Street Signs Asia " on Wednesday. "That level of uncertainty in terms of terminal rates, where the Fed will stop raising, is now officially an unknown. And so that's extremely problematic for the markets," he added. But O'Leary said now's a good time for investors to jump into stocks, even as some may chase record-high Treasury yields, which are typically seen as risk-free. The yield on the 2-year Treasury , the part of the curve most sensitive to monetary policy, climbed to 3.794% at one point on Tuesday, its highest level since November 2007. "If you're an investor, maybe the best thing to do here is β since you can't guess the bottom β is to take opportunities on days like today and buy stocks that you think are attractive," he said. "If you are an investor like I am, you have to find stocks to put to work because you can't say there's no alternative when you get 3.79% [yield] on Treasuries. But frankly, if you want to get a 6% to 8% return, you're going to have to put some money in harm's way," he added. Top picks O'Leary's top picks to navigate the volatility include chip giants Broadcom and Nvidia . "These stocks have been decimated and yet they're still growing. They're still needed. The whole idea that we're going to stop needing semiconductors is ridiculous," the venture capitalist said. O'Leary also likes IBM as another safe bet. "IBM is probably the most hated name in technology. An old dinosaur company that has over 5% of dividend yield and is re-constructing itself into a web-based company. That's another name you can hide in the weeds with," he said. Bank stocks also look attractive to him, with the sector trading at an average book value of 1.1x β a level that he said has "traditionally been a great place to buy." Read more Morgan Stanley says an investment 'boom' is coming to India, and names the stocks to play it Forget oil β coal is hot right now. Here are 2 stocks to play it, according to the pros Wall Street is calling for value over growth. Morningstar says this fund is 'one of the best' Energy stocks could also enjoy tailwinds going into the winter months, which have "traditionally been good" for the sector. In particular, he believes natural gas will be a "big story" if the war between Russia and Ukraine continues. He believes natural gas is a "long term secular story," as the commodity is "desperately needed" by Europe amid the continent's standoff with Russia over gas supplies, and also because of efforts to offset carbon emissions in the U.S. by switching to natural gas. "Energy has been volatile because it's also playing against the recession game globally. The reason the price of oil is corrected as people have been shown the demands will slow down. But I've seen no metrics for that. I don't see in any way how that's going to happen," O'Leary said, pointing to a production cut by OPEC+ and the closure of a key Russia pipeline. But there remains the "risk of peace" to the energy story. "The price is energy is tied to the Ukrainian war β¦ if all of a sudden there was an agreement worked out with the Russians, you would see the price of oil correct significantly," he said. β CNBC's Lee Ying Shan contributed to this report. | 2022-09-16T07:42:05Z | www.cnbc.com | Kevin O'Leary: Take risks for higher returns and names stocks | https://www.cnbc.com/2022/09/15/kevin-oleary-take-risks-for-higher-returns-and-names-stocks-.html | https://www.cnbc.com/2022/09/15/kevin-oleary-take-risks-for-higher-returns-and-names-stocks-.html |
Railroads and workers' unions reached a tentative labor agreement early Thursday.
The deal averts a national rail strike that threatened to shut a major segment of the U.S. transportation network.
The new contracts provide 24% pay increases over five years from 2020 through 2024 and include immediate payouts averaging $11,000 upon ratification, in addition to an extra paid day off for workers.
Railroads and workers' unions reached a tentative labor agreement early Thursday to avert a national rail strike that threatened to shut a major segment of the U.S. transportation network.
The last-minute deal avoids massive disruptions to the flow of key goods and commodities around the country. About 40% of the nation's long-distance trade is moved by rail. If the unions had gone on strike, more than 7,000 trains would have been idled, costing up to an estimated $2 billion per day.
The deadline for an agreement was midnight Friday morning. The parties spent 20 consecutive hours negotiating before reaching a deal.
"The tentative agreement reached tonight is an important win for our economy and the American people," President Joe Biden said in a statement announcing the deal. "It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America's families and communities got deliveries of what have kept us going during these difficult years."
The new agreement would improve rail workers' pay and working conditions and give them "peace of mind around their health care costs," Biden said. He thanked railroad unions and companies for negotiating "in good faith."
The new contracts provide rail employees with a 24% wage increase during the five-year period from 2020 through 2024, including immediate average payouts of $11,000 upon ratification, according to the Association of American Railroads. The agreement also allows for an extra paid day off for workers, according to a joint statement by the labor unions.
A spokesman for the unions called it a historic win and said the deal paves the way to revisit attendance policies in the future, but cautioned that the tentative agreements are subject to ratification by the unions' membership. That process that could take at least a week.
Negotiators from railroad carriers and unions had met in Labor Secretary Marty Walsh's office Wednesday as the sides tried to negotiate a deal ahead of Friday's strike deadline.
Norfolk Southern and other railroads had been ramping down operations to prioritize critical shipments. The rail company on Thursday said it was working to restore normal operations.
"Our goal from the beginning has been to provide our craft railroaders with pay and benefits that keep them among the highest compensated workers in the nation. We are pleased to have a path forward that accomplishes that goal and lets us get back to the work of running a customer-centric, operations-driven railroad," Norfolk Southern said in a message to customers.
Union Pacific on Thursday canceled a previously set embargo on certain commodities and said it was working with customers to address backlogs.
Amtrak was also working to restore normal operations. The company on Wednesday announced it would cancel all long-distance trains in anticipation of a strike since many of its railways are maintained by freighters.
Amtrak said Thursday said it expected to fully restore operations by Friday.
β CNBC's Melodie Warner contributed to this report. | 2022-09-16T07:42:30Z | www.cnbc.com | Railroads and labor unions reach tentative deal to avert strike | https://www.cnbc.com/2022/09/15/president-joe-biden-says-tentative-railway-labor-agreement-reached.html | https://www.cnbc.com/2022/09/15/president-joe-biden-says-tentative-railway-labor-agreement-reached.html |
Five years ago Sam Bankman-Fried hadn't bought his first bitcoin, but today, he's one of the youngest billionaires in the world thanks to the cryptocurrency, and one of the most powerful people in the young but fast-growing crypto industry. Bankman-Fried, who has been touted by some as the next Warren Buffett, still drives his Toyota Corolla, however, and has said he plans to give 99% of his fortune away to charity. He's also been called "Crypto's White Knight" for his efforts to bail out struggling companies in a painful year for the market and its participants β like Voyager Digital and BlockFi. The founder and CEO of FTX, one of the biggest and fastest-growing cryptocurrency exchanges, created his company to address the fragmented infrastructure across industry platforms. While crypto has come a long way from when it was too challenging for the average person to download a bitcoin wallet, it's exploded in popularity, but the user experience for investors of any level hasn't kept up. In this Pro exclusive, CNBC's Kate Rooney sits down with Bankman-Fried to discuss his path to becoming a billionaire, his vision for the future of the crypto industry, his investing strategy, how he plans to build out his company profitably and more. Tune in to CNBC all day Friday for more on Sam Bankman-Fried. | 2022-09-16T07:42:43Z | www.cnbc.com | Pro Exclusive: FTXβs Sam Bankman-Fried on becoming a billionaire and his investing strategy | https://www.cnbc.com/2022/09/15/pro-exclusive-ftxs-sam-bankman-fried-on-becoming-a-billionaire-and-his-investing-strategy.html | https://www.cnbc.com/2022/09/15/pro-exclusive-ftxs-sam-bankman-fried-on-becoming-a-billionaire-and-his-investing-strategy.html |
The water in the jar on the left is wasterwater before being put through ZwitterCo's filtration membrane. The jar on the right is water cleaned and ready for reuse. The jar in the middle is the concentrate of waste that has been pulled out of the water with the filtration system and can be used in to make other products, like fertilizer of feestock, which can be sold. | 2022-09-16T07:44:36Z | www.cnbc.com | ZwitterCo helps farms and factories recycle wastewater | https://www.cnbc.com/2022/09/15/zwitterco-helps-farms-and-factories-recycle-wastewater.html | https://www.cnbc.com/2022/09/15/zwitterco-helps-farms-and-factories-recycle-wastewater.html |
Investors have seemingly lost their appetite for tech stocks this year amid a flight to safety. Tuesday's sell-off on Wall Street saw the six largest U.S. tech companies shed more than $500 billion in market capitalization after a hotter-than-expected August inflation report sent stocks tumbling. Top tech investor Paul Meeks is advising investors to stay away for now β unless one is prepared to batten down the hatches till the storm subsides. "I think that tech should continue to be avoided for the time being unless one truly is a long-term investor. Now, many people say that they are, but they get rattled by short-term losses, so they really aren't," Meeks, portfolio manager at Independent Solutions Wealth Management, told CNBC's "Street Signs Asia" on Thursday. "Add an inventory correction to the existing troubles with semiconductors, and that's another reason to stay away because the sector probably can't outperform without a semiconductors recovery." Against this backdrop, Meeks is opting to stay defensive in the sector, preferring safer bets with "abnormally high cash levels." Here's what he has to say about two of the tech giants: Apple and Samsung. Exposure to semiconductors In the short term, Meeks prefers Apple for its relative safety. "The most troubled part of the tech sector worldwide right now is semiconductors. They are suffering from all kinds of troubles. First, the knock-on effects of the Covid-19 pandemic, but it has gotten worse recently because there is now a semiconductor inventory correction around the world," he said. He believes Samsung will be "badly impacted," as it derives nearly third of its revenues from its memory chip business. The South Korean electronics giant saw an 18% growth in its semiconductor segment in the second quarter of the year, a performance that Meeks hailed as "heroic in a downturn." But he said investors should expect the segment to "show some damage" in the third quarter, with the inventory correction having come "fast and furious" after Samsung reported its earnings. Meeks thus believes Apple is a safer bet in the short term as it does not have as much exposure to the beleaguered semiconductor sector. "The semiconductor business is a very good business, but it's extremely cyclical. Whereas Apple does a lot of things well, but they're not in the semiconductor business," he said. Samsung a long-term bet? Over the longer term, however, Meeks believes Samsung is the better bet. "Over the longer term, once you get past the short and intermediate term risks, I would probably prefer Samsung. While they are both great companies, Samsung is a hell of a lot cheaper," he said. "What I see is that a year or so from now, you would want to be in Samsung. Cheaper valuation, bigger upside and you will be poised for a nice snapback in semiconductors. I'm just worried about that next couple of quarters between here and then," he added. Shares in Apple are down 12.2% this year, although they've beated the tech-heavy Nasdaq Composite , which has shed nearly 25% of its market value in the same period. The company is buy-rated by 78% of analysts covering it, who give it an average potential upside of 17.5%, according to FactSet data. Samsung has lost nearly a third of its market cap in this year's tech rout but is buy-rated by a whopping 94% of analysts covering the stock. FactSet data shows the stock has an average potential upside of 43.1%. | 2022-09-16T07:45:07Z | www.cnbc.com | Tech investor Paul Meeks weighs in on Apple and Samsung | https://www.cnbc.com/2022/09/16/tech-investor-paul-meeks-weighs-in-on-apple-and-samsung.html | https://www.cnbc.com/2022/09/16/tech-investor-paul-meeks-weighs-in-on-apple-and-samsung.html |
"It was important that the industry get through this in one piece," Bankman-Fried tells CNBC. "It's not going to be good for anyone long term if we have real pain and real blowouts."
It may seem strange. Other multibillion-dollar crypto giants spiraled into bankruptcy this year. FTX's main competitor, Coinbase, has seen its shares plunge 70% and has laid off a fifth of its workforce as crypto prices crashed.
"It was important that the industry get through this in one piece," Bankman-Fried told CNBC in an interview at FTX headquarters in Nassau, Bahamas. "It's not going to be good for anyone long term if we have real pain and real blowouts β it's not fair to customers and it's not going to be good for regulation."
The crypto industry saw billions of dollars wiped out during the weeks surrounding the implosion of cryptocurrency Terra USD and the failure of crypto hedge fund Three Arrows Capital. Lenders with exposure to Three Arrows were the next domino to fall. In July, FTX signed a deal that gives it the option to buy lender BlockFi after providing a $250 million line of credit. FTX also extended $500 million to struggling Voyager Digital, which later declared bankruptcy, and was in discussions to acquire South Korean crypto exchange Bithumb.
"I don't think we're immune from it," Bankman-Fried said. "But we put a lot of work in to growing our footprint over the last year ... and we have a less retail-heavy platform β retail tends to be more market sentiment dependent."
In addition to its success with professional traders, it's making an expensive land grab for the U.S. retail trading audience. FTX bought the the naming rights to the Miami Heat's NBA arena, formerly American Airlines Center. It has courted high-profile investors and brand ambassadors including Tom Brady and Gisele Bundchen, and ran a Super Bowl ad featuring Larry David.
The cryptocurrency exchange brought in roughly a billion dollars in revenue last year, CNBC reported in August. Bankman-Fried confirmed the numbers were in the "right ballpark" and this year would see a "similar" figure, depending on how severe the market slowdown is. He also said the company is profitable.
He pointed to low employee head count as one factor accounting for profitability. FTX has roughly 350 employees -- about a tenth of Coinbase's workforce.
Bankman-Fried earned a degree in physics from the Massachusetts Institute of Technology and started his career as a quantitative trader at Jane Street Capital. He bought his first bitcoin five years ago, and said he was drawn to the industry by wide arbitrage opportunities that seemed "too good to be true." In 2017, Bankman-Fried launched proprietary trading firm Alameda Research to start trading the asset full time. The firm was making a million dollars a day in some cases, buying on an exchange in one market, and selling back on other global exchanges, according to the CEO.
Alameda Research still accounts for about 6% of FTX's exchange volumes, according to documents seen by CNBC. While Bankman-Fried is still a major shareholder in Alameda, he stepped down from day-to-day operations.
FTX benefited from being a private company this year. FTX doesn't have the daily ups and downs of a publicly traded stock, especially growth names, which this year have been battered by higher interest rates. Bankman-Fried also said not having thousands of shareholders enabled FTX to move quickly when trying to close deals in a matter of days.
"It was unclear if it would be net positive or negative β there was potential upside in a case where things went well," he said. "We got to the point of feeling like we could do something that would have a nontrivial chance of helping for an amount of money that we were willing to lose if things went wrong."
After extending a line of credit to Voyager, FTX and Alameda looked to buy and and restructure the company. It outlined a plan to purchase Voyager's digital assets and loans at market value. The company responded to the bid calling it a "low ball bid dressed up as a white knight rescue."
Bankman-Fried's latest moves in crypto have drawn comparisons with Warren Buffett's strategy in 2008. The legendary Berkshire Hathaway chairman and CEO stopped the bleeding during the financial crisis with a $5 billion investment in Goldman Sachs. That eventually brought the Omaha, Nebraska-based conglomerate a $3 billion gain.
Like Buffett, Bankman-Fried signed the Giving Pledge: a promise by the world's wealthiest individuals to donate the majority of their wealth to charity. Bankman-Fried said he has given away roughly $100 million this year, with a focus on future pandemic prevention. Similar to Buffett, he lives modestly. Bankman-Fried shares a house with 10 roommates and a Goldendoodle named Gopher. He drives a Toyota Corolla, and said he has no interest in the excesses of a yacht or Lamborghini.
Buffett has called the underlying blockchain technology "important" β but hasn't wavered on the idea that "bitcoin has no unique value at all." Blockchains are digital databases that store cryptocurrency transactions and, in some cases, other data. Its main use has been powering cryptocurrencies like bitcoin. But fans of the technology say it could be used in health care, supply chain logistics and other areas of finance.
Correction: Gisele Bundchen is a brand ambassador for FTX. An earlier version misspelled her name. | 2022-09-19T01:18:10Z | www.cnbc.com | How billionaire Bankman-Fried survived the slump and still expanded | https://www.cnbc.com/2022/09/16/how-billionaire-bankman-fried-survived-the-slump-and-still-expanded.html | https://www.cnbc.com/2022/09/16/how-billionaire-bankman-fried-survived-the-slump-and-still-expanded.html |
The jersey was worn in the first game of the 1998 NBA Finals.
Michael Jordanβs game-worn 1998 NBA Finals βThe Last Danceβ jersey from game 1 is on display during a press preview at Sotheby's on September 06, 2022 in New York City.
The jersey is also the most expensive Jordan item ever sold, surpassing an autographed card that sold for $2.7 million. Sotheby's had expected up to a $5 million winning bid, but 20 offers drove the price to double that estimate.
Jordan wore the jersey on the way to his sixth NBA championship with the Chicago Bulls, a journey chronicled in the popular TV series "The Last Dance." At the time, the 1998 Finals were the most-watched in history, as viewers across the globe tuned in to see the star's last run with the likes of Phil Jackson, Scottie Pippen, Dennis Rodman and Steve Kerr.
Sotheby's reported "a new generation of collectors" in announcing the sale of Jordan's jersey on Thursday. In addition to physical collectibles, the New York-based auction house has pushed to modernize, auctioning NFTs and even boasting its own metaverse location. | 2022-09-19T01:18:23Z | www.cnbc.com | Michael Jordan jersey $10.1 million Sotheby's record memorabilia | https://www.cnbc.com/2022/09/16/michael-jordan-jersey-10point1-million-sothebys-record-memorabilia.html | https://www.cnbc.com/2022/09/16/michael-jordan-jersey-10point1-million-sothebys-record-memorabilia.html |
The Yield on the 2-year Treasury bond was down less than 1 basis point to 3.869%. The yield climbed above 3.9% earlier in the day, a level it had not seen since Nov. 1, 2007. The 2-year Treasury is highly sensitive to policy decisions as it is widely recognized as in indicator of how investors think central bank policy will develop in the near future.
The yield on the 10-year Treasury was down slightly at 3.453%. The yield on the 30-year Treasury rose nearly 4 basis points to 3.519%.
The rise in yields has made fixed income more attractive to income-focused investors, but the inverted curve has added a reason for caution.
"Although yields being much higher is making fixed income look more attractive, at the same time we're still faced with an inverted yield curve. Making that duration decision is not very attractive. We're still favoring the short end of the curve," said Jake Jolly, senior investment strategist at BNY Mellon Investment Management. | 2022-09-19T02:01:35Z | www.cnbc.com | Spike in Treasury yields pauses as investors look ahead to Fed meeting | https://www.cnbc.com/2022/09/16/2-year-treasury-note-tops-3point9percent-as-investors-anticipate-fed-rate-hikes.html | https://www.cnbc.com/2022/09/16/2-year-treasury-note-tops-3point9percent-as-investors-anticipate-fed-rate-hikes.html |
BlackRock's Rieder says Fed rate hiking means stocks could get cheaper and short-term debt more attractive
BlackRock's Rick Rieder said higher-quality, shorter-duration fixed income investments have become very attractive, but the sell-off in stocks has a ways to go and investors will be able to buy equities at a better value from here. "I think if you said to me the story of the first half was to hold cash, the story of the second half of this year is you can hold assets that are cash-like and get paid a lot of carry, a lot of income," said Rieder, the firm's chief investment officer of global fixed income. Carry is the difference between the return from a bond's yield and the cost of financing the investment. The Federal Reserve's interest rate hikes and the anticipation for even higher rates have been pushing up yields. The shorter end of the curve has seen a big jump. The 2-year Treasury yield, for instance rose to 3.858% on Thursday, the highest level since 2007. "From an asset allocation point of view, you can have high quality, not take a lot of interest rate risk, and you can get some really good yields now," Rieder said, in a phone interview. He said 1-year and 2-year paper are a good place to look for yield. In an environment where the Fed is raising rates, longer-duration, interest-heavy assets become a larger risk, he notes. Turbulence for stocks will continue While yields are rising, the Fed's rate hikes have not been good for stocks. Rieder said the stock market rout is not over, and investors should be holding fewer equities than normal. "There's going to be a point where it's going to be clear the Fed has reached the terminal rate and is going to pause," he said. "At that point, equities and emerging markets will look good." Rieder expects rates could still trend higher, but "we think we are close to seeing the higher end of a potent 2022 rate-rise cycle." He notes shorter-dated credit and higher-quality securitized assets yielding 4.5% to 6.5% could be an attractive source of carry and return. This would include corporate bonds. Securitized assets could include such things as mortgages, auto loans or credit card debt. High-yield debt spreads are the highest since spiking in 2020. "A lot of AAA and AA securitized assets now get you 5.25% to 5.5%. Corporates, depending on where you go, might get you mid to high 4s," Rieder said. A year ago, those corporates yielded less than 2%. | 2022-09-19T02:01:54Z | www.cnbc.com | BlackRock's Rieder says Fed rate hiking means stocks could get cheaper | https://www.cnbc.com/2022/09/16/blackrocks-rieder-says-fed-rate-hiking-means-stocks-could-get-cheaper.html | https://www.cnbc.com/2022/09/16/blackrocks-rieder-says-fed-rate-hiking-means-stocks-could-get-cheaper.html |
Joshua Bassett doesn't know how much Disney pays him for 'High School Musical': 'I choose not to let money dictate how I live my life'
"I've lived in my car with negative $1 in my bank account, so I've seen both sides of the coin and I choose not to let it dictate how I live my life.
How a 26-year-old graduate student making $32,000/year spends his money | 2022-09-19T02:02:49Z | www.cnbc.com | 'HSMTMTS' star Joshua Bassett still doesn't know his Disney salary | https://www.cnbc.com/2022/09/16/hsmtmts-star-joshua-bassett-still-doesnt-know-his-disney-salary.html | https://www.cnbc.com/2022/09/16/hsmtmts-star-joshua-bassett-still-doesnt-know-his-disney-salary.html |
Investigators find more than 440 bodies at mass grave in Ukraine
Two NASAMS air defense systems will arrive in Ukraine by mid-November
The Pentagon updated its timeline for the transfer of two National Advanced Surface-to-Air Missile Systems (NASAMS) to Ukraine, saying they would arrive within two months, or by mid-November.
"We're tracking that two NASAMS are expected to be delivered within the next two months or so," said Pentagon press secretary Brigadier Gen. Patrick Ryder.
"These defensive systems will further contribute to protecting Ukrainians from enemy air threats, including aircraft, unmanned aerial vehicles and missiles."
The NASAMS is one of the most highly anticipated weapons systems that has been committed to the Ukrainian military thus far in the war.
Developed by Raytheon and Norway's Kongsberg, it is orders of magnitude more advanced than the Russian-made air defense systems that Ukraine has used in the past, notably the S-300.
It also represents a major step for Ukraine's military toward a longer-term cooperation with Western allies.
NASAMS "is a NATO system, so for us it's important to start to help the Ukrainians transition their air defense systems from what is a now a Soviet-type system, to introduce some of this modern technology," a senior Defense Department official said in July.
'The president is not going to let up,' White House says on bringing Brittney Griner and Paul Whelan home
White House National Security Council Strategic Communications Coordinator John Kirby addresses the daily press briefing at the White House in Washington, July 27, 2022.
The Biden administration is not going to let up in its efforts to bring WNBA star Brittney Griner and former U.S. Marine Paul Whelan home, a White House spokesman said.
"Discussions are ongoing. I think Karine said it really well yesterday, sadly we don't have an agreement to tell you about," national security spokesman John Kirby told reporters at the White House.
"We made a serious offer," Kirby said, referencing the Biden administration's offer for the release of the two U.S. citizens in Russian custody.
"What I can tell you for sure is the president is not going to let up," he added.
Ukraine is consolidating gains in the north, making 'forward movements' in the south, according to latest U.S. assessment
The latest U.S. assessment of the war in Ukraine is that Ukraine is setting the pace of the war both in the north and south, but that its momentum is manifesting differently in the two different theaters.
"In the north, what we assess is that the Ukrainians are consolidating their gains after taking back significant territory, and that the Russians are attempting to shore up their defensive lines after having been pushed back," said Pentagon press secretary Air Force Brig. Gen. Pat Ryder in a briefing with reporters.
"In the south, the Ukrainians continue to make what we would assess as deliberate calculated forward movements, as the Russians continue to try to hold that line," he added.
Ryder declined to speculate on any timeline for an end to the conflict. "The only thing that could shorten it is if the Russians decided to do the right thing and withdraw their forces from occupying Ukraine," he said.
About 16 million people in Ukraine are in need of water, sanitation and hygiene assistance
Maria Pshenychnykh, 83, sits in the kitchen of her war-damaged home near Kharkiv on May 18, 2022 in Vilkhivka, Ukraine, which had until recently been occupied by Russian forces. Seniors in the city have been relying on humanitarian aid, as their monthly government pension payments were suspended due to the fighting. In recent weeks Ukrainian forces have advanced towards the Russian border after Russia's offensive on Kharkiv, Ukraine's second largest city stalled.
John Moore | Getty Images
About 16 million people in Ukraine urgently need water, sanitation and hygiene assistance, the United Nations estimates.
"These include internally displaced people in collective centers and host communities, in addition to communities affected by hostilities-related damages to systems and limitations in water treatment consumables," the U.N. wrote.
The U.N. warned that there is an elevated risk of sanitation and hygiene-related diseases.
The Kremlin has previously denied that its forces target civilian infrastructure.
U.S. delegation will meet with Ukrainians at U.N. General Assembly next week, no plans to meet with Russians
U.S. Ambassador to the United Nations Linda Thomas-Greenfield said the Biden administration will meet with Ukrainian officials on the sidelines of the United Nations General Assembly next week.
The high-level meeting of the 193 members of the United Nations General Assembly begins on Sept. 20 in New York City.
Thomas-Greenfield declined to elaborate further on the meetings President Joe Biden and Secretary of State Antony Blinken would have.
She said the Biden administration does not now have plans to meet with the Russian delegation at the United Nations.
More than 14.5 million people in Ukraine are in need of health assistance, U.N. says
A medical worker takes care a patient who was injured during a Russian cruise missiles strike on Thursday at a hospital in Vinnytsia, Ukraine July 15, 2022.
More than 14.5 million people in Ukraine are in need of health assistance, according to a United Nations estimate.
"Access to health care continues to be severely impacted by security concerns, restricted mobility, broken supply chains and mass displacement," the U.N. wrote in a new report.
U.S. ambassador to the U.N. slams Russia's weaponization of food
Linda Thomas-Greenfield, United States Ambassador to the United Nations, addresses the United Nations General Assembly during a special session at the United Nations headquarters on March 23, 2022 in New York City.
U.S. Ambassador to the United Nations Linda Thomas-Greenfield slammed Russia's war in Ukraine and Moscow's decision to weaponize food supply.
"Before the war, Russia and Ukraine accounted for almost a quarter of global grain exports. But now Ukraine's once rolling wheat fields have become battlefields. This weaponization of food has had global ripple effects. Russia's war has exacerbated this crisis," Thomas-Greenfield said at the United Nations.
"The impacts on wheat, food, oil, and fuel are being felt by all of us. The answer to all of the questions is simple β end the war β end the unprovoked attack on Ukraine and that will get us out of part of this situation," she added.
Thomas-Greenfield said that Ethiopia, northeast Nigeria, Yemen and South Sudan are proving to be the most vulnerable countries to food insecurity.
Four vessels set to depart Ukraine carrying 69,600 metric tons of agricultural products
An aerial view of "Glory" named empty grain ship as Representatives of Russia, Ukraine, Turkey and the United Nations (UN) of the Joint Coordination Center (JCC) conduct inspection on vessel in Istanbul, Turkiye on August 09, 2022.
The Joint Coordination Center, an initiative of Ukraine, Russia, the United Nations and Turkey, said that the vessels are carrying 69,600 metric tons of grain and other food products.
The ships are expected to depart tomorrow and are destined for Germany, Romania, Greece and Egypt.
Since Ukraine's ports were reopened, more than 2.2 million metric tons of grain and other food products have been exported.
More than 400 bodies found in mass graves in Izium, Zelenskyy says
This photograph taken eastern Ukraine on September 16, 2022 shows crosses at a burial site in a forest on the outskirts of Izyum.
EDITORS NOTE: This post shows graphic content of mass graves uncovered near Izyum, Ukraine.
Ukrainian President Volodymyr Zelenskyy said that more than 400 bodies have been discovered in mass grave sites in the city of Izium.
Two forensic technicians dig near a cross in a forest on the outskirts of Izyum, eastern Ukraine on September 16, 2022.
"More than 400 bodies were found at the mass burial site in Izyum with signs of torture. Children, those killed as a result of missile attacks, warriors of the Armed Forces of Ukraine," Zelenskyy said in English on the Telegram messaging app.
"Russia leaves only death and suffering. Murderers. Torturers. Deprived of everything human. You won't run away. You won't hide. Retribution will be justly dreadful. For every Ukrainian, for every tortured soul," he added.
Forensic technicians dig a grave in a forest on the outskirts of Izyum, eastern Ukraine on September 16, 2022. - Ukraine said on September 16, 2022 it had counted 450 graves at just one burial site near Izyum after recapturing the eastern city from the Russians.
EDITORS NOTE: Graphic content / Forensic technicians carry a body bag in a forest on the outskirts of Izyum, eastern Ukraine on September 16, 2022.
The Kremlin has previously denied that its forces target and kill civilians, which is a violation of international humanitarian law.
β Amanda Macias, Adam Jeffery and Getty Images
Ukraine war has pushed 70 million people closer to starvation, UN says
KHMELNYTSKYI, UKRAINE - AUGUST 05: A combine harvesters of Astarta-Kyiv agri-industrial holding harvests wheat on August 5, 2022 in the Khmelnytskyi region of Ukraine. In normal times, Ukraine is one of the world's largest grain exporters, but the Russian invasion and naval blockade has trapped millions of metric tons of grains here, raising fears of a global food crisis. On Monday, a ship full of corn was the first such vessel to leave Ukraine's southern port of Odessa following a deal brokered by Turkey and the United Nations, to ensure the safe passage of grain to foreign ports. (Photo by Alexey Furman/Getty Images)
Russia's invasion of Ukraine and the ensuing nearly seven months of war have thrown millions of people around the world into food insecurity and brought many of those closer to starvation, the head of the U.N.'s World Food Program warned.
"What was a wave of hunger is now a tsunami of hunger," WFP chief David Beasley said, noting that the number of people suffering from acute food insecurity had doubled since the Covid-19 pandemic first hit. The war in Ukraine has sent food inflation soaring, as Russian warships have largely blocked Ukraine's vital Black Sea ports, through which huge proportions of the world's grain and other staple food products are shipped.
Beasley said that the surge in costs of food, fuel and fertilizer has brought 70 million people closer to starvation.
Turkey in July brokered an agreement that enabled Ukrainian grain to be exported from three Black Sea ports that had been blocked by Russia, and efforts are continuing to get more produce out to markets, as well as Russian fertilizer, the export of which is hampered by Western sanctions.
Still, Beasley said, "there is a real and dangerous risk of multiple famines this year."
Milley and national security advisor Jake Sullivan hold calls with Ukrainian counterparts
US General Mark Milley attends a meeting with members of a Ukraine Security Consultative Group at the US Air Base in Ramstein, western Germany, on April 26, 2022.
Chairman of the Joint Chiefs of Staff Gen. Mark Milley and national security advisor Jake Sullivan spoke with their Ukrainian counterparts.
"They discussed the unprovoked and ongoing Russian aggression in Ukraine and international support for the Ukrainian armed forces," according to a Pentagon readout of the call with Ukrainian Armed Forces Gen. Valery Zaluzhny and Ukraine's Andriy Yermak.
The call comes as Ukrainian forces carried out lightning advances in the country's east and south and as the Biden administration readied a new security assistance package.
The latest package, the 21st such installment, is worth approximately $600 million.
Kyiv criticizes Germany for failing to send the heavy weapons it promised
EDITORS NOTE: Graphic content / TOPSHOT - Two forensic technicians carry a body bag in a forest on the outskirts of Izyum, eastern Ukraine on September 16, 2022. | 2022-09-19T02:03:44Z | www.cnbc.com | Live updates: Latest news from Russia and the war in Ukraine | https://www.cnbc.com/2022/09/16/russia-ukraine-live-updates.html | https://www.cnbc.com/2022/09/16/russia-ukraine-live-updates.html |
SOPA Images | Getty
With the passing of Queen Elizabeth II, many people wonder what will happen to Commonwealth banknotes and coins, which have bared the monarch's likeness for much of her 70-year reign.
The Queen's image can be found on the currency of more than 15 countries, the most populated being the United Kingdom, Australia, Canada and New Zealand. This list includes Bermuda, St. Lucia and Montserrat, along with other Caribbean nations that use the Eastern Caribbean dollar. Currency in many Oceania countries also bears the Queen's portrait. | 2022-09-19T02:04:27Z | www.cnbc.com | What countries with the Queen on their currency will do next | https://www.cnbc.com/2022/09/16/what-countries-with-the-queen-on-their-currency-will-do-next.html | https://www.cnbc.com/2022/09/16/what-countries-with-the-queen-on-their-currency-will-do-next.html |
Published Mon, Sep 19 20226:29 AM EDT Updated Moments Ago
Princess Anne, Princess Royal, Prince Andrew and Prince Harry, Duke of Sussex watch as the coffin of Queen Elizabeth II is placed on a gun carriage ahead of the State Funeral of Queen Elizabeth II at Westminster Abbey on September 19, 2022 in London, England.
It is unclear how many of the queen's 12 great-grandchildren will be there. However, it has been confirmed that Prince George and Princess Charlotte β now second and third in line to the thrown, respectively β will attend. | 2022-09-19T10:48:00Z | www.cnbc.com | Who is and isn't attending Queen Elizabeth II's funeral in London | https://www.cnbc.com/2022/09/19/who-is-and-isnt-attending-the-queen-elizabeth-iis-funeral-in-london.html | https://www.cnbc.com/2022/09/19/who-is-and-isnt-attending-the-queen-elizabeth-iis-funeral-in-london.html |
With Amazon Pharmacy, Prime customers in the United States can get their prescription medications shipped to their home for free.
Parker and Cohen co-founded PillPack in 2013. Parker, who's dad was a pharmacist, attended pharmacy school in Boston. He met Cohen, who was in business school at MIT. PillPack started serving customers in 2014, and Parker's dad joined as one of the company's first pharmacists.
Amazon launches online pharmacy in the United States | 2022-09-19T20:22:22Z | www.cnbc.com | Amazon loses PillPack founders four years after acquisition | https://www.cnbc.com/2022/09/19/amazon-loses-pillpack-founders-four-years-after-acquisition-.html | https://www.cnbc.com/2022/09/19/amazon-loses-pillpack-founders-four-years-after-acquisition-.html |
Apple's iPhone 14 is the easiest to fix since 2016 as 'right to repair' gains momentum
The changes will make it easier for Apple store employees, independent repair shops and end users to replace the phone's screen, back glass and battery, the most common fixes for most smartphones.
Apple's iPhone redesign comes as advocates continue to push for laws that give consumers access to manuals, tools and parts needed to repair increasingly complicated electronic devices and industrial machines, which they say will make them last longer, reducing e-waste and environmental impact, while saving money for users.
The issue is also gaining attention at the federal level. President Joe Biden supports right to repair and he asked the Federal Trade Commission to draft right-to-repair rules in an executive order in 2021. The FTC also produced a report delivered to Congress in 2021 about the legal landscape around right to repair, identifying mobile phones and car manufacturers as two industries with restrictions around repair.
Apple has taken some steps in recent years toward making it easier to repair its devices. In April, it introduced a program called Self Service Repair that allows users and independent repair shops to rent the same tools that Apple stores use as well as purchase genuine replacement Apple parts. The company also made repair manuals for its devices available through the program. | 2022-09-19T20:22:28Z | www.cnbc.com | Apple iPhone 14 easiest to fix since 2016: iFixit | https://www.cnbc.com/2022/09/19/apple-iphone-14-easiest-to-fix-since-2016-ifixit.html | https://www.cnbc.com/2022/09/19/apple-iphone-14-easiest-to-fix-since-2016-ifixit.html |
Hinduja Group: The world is now looking to India for manufacturing
Workers unload goods from a truck in the main market area in Gandhidham, India. India is a great market and the "best bet" in the global economy, said Ashok Hinduja, chairman of Hinduja Group, India.
China's foreign direct investment dwarfed India's at $101.9 billion over the same period, the report said. | 2022-09-20T02:15:25Z | www.cnbc.com | Hinduja Group: India is the 'best bet' in the global economy | https://www.cnbc.com/2022/09/20/hinduja-group-india-is-the-best-bet-in-the-global-economy.html | https://www.cnbc.com/2022/09/20/hinduja-group-india-is-the-best-bet-in-the-global-economy.html |
The Peloton Row machines are now available for preorder, and the company expects to start delivering the machines by December.
Peloton has been executing a restructuring plan as losses have mounted for the company.
Peloton Rowing Machine
Peloton is adding rowing machines to its lineup as the company works through a restructuring to expand its customer base and return to a profit.
The fitness-machine maker said on Tuesday it's launching Peloton Row, which starts at $3,195 and is now available for preorder on its website. Deliveries are expected to begin in December.
The company had also announced it partnered up with Amazon to begin selling its products on the behemoth e-commerce retailer, a move that could help Peloton broaden its customer base. The partnership is Peloton's first foray outside its core direct-to-consumer business.
Peloton has also been shaking up its leadership. A week ago, the company announced co-founder and former CEO John Foley, co-founder and Chief Legal Officer Hisao Kushi and Chief Commercial Officer Kevin Cornils would be leaving the company as part of its transformation. | 2022-09-20T17:07:08Z | www.cnbc.com | Peloton adds $3,195 rowing machine to fitness equipment lineup | https://www.cnbc.com/2022/09/20/peloton-adds-3195-rowing-machine-to-fitness-machine-lineup-.html | https://www.cnbc.com/2022/09/20/peloton-adds-3195-rowing-machine-to-fitness-machine-lineup-.html |
Tracy, a career diplomat, will take over from John Sullivan who left Moscow at the beginning of the month and announced his intention to retire. Tracy served as the second-highest official at the U.S. Embassy in Moscow from 2014 to 2017 as deputy chief of mission. She also previously served as senior adviser for Russia affairs in the State Department's Bureau of European and Eurasian Affairs.
Tracy's nomination to be ambassador comes at a crucial moment for U.S.-Russian relations amid tensions over the continuing invasion of Ukraine. | 2022-09-20T20:09:43Z | www.cnbc.com | Biden nominates Lynne Tracy to be new Russian ambassador | https://www.cnbc.com/2022/09/20/biden-nominates-lynne-tracy-to-be-new-russian-ambassador.html | https://www.cnbc.com/2022/09/20/biden-nominates-lynne-tracy-to-be-new-russian-ambassador.html |
UNITED NATIONS β When U.S. President Joe Biden takes the famed speakers rostrum at the United Nations Assembly Hall, he will do so under immense international scrutiny.
How Ukraine brought the European Union together
Ukraine's smaller forces, equipped with Western weapons, have put up stunning advances in recent days against the Kremlin's mighty war machine.
Despite the hailed counteroffensive against Russia, the U.N. estimates the war has claimed nearly 6,000 civilian lives and resulted in more than 8,600 injuries. The Office of the U.N. High Commissioner for Human Rights, though, adds that the death toll in Ukraine is likely higher.
The Biden administration has also pledged to support international efforts at documenting Russian war crimes committed in Ukraine.
Kirby's comments come on the heels of a grizzly discovery of more than 400 mass graves in the recently liberated eastern Ukrainian city of Izium. The revelation in Izium runs parallel to a finding in Bucha, Ukraine, in April.
Here's a breakdown of the high-tech weapons the U.S. is shipping to Ukraine | 2022-09-21T00:40:20Z | www.cnbc.com | U.N. General Assembly: Biden to urge allied nations for more Ukraine support | https://www.cnbc.com/2022/09/20/un-general-assembly-biden-to-urge-allied-nations-for-more-ukraine-support-.html | https://www.cnbc.com/2022/09/20/un-general-assembly-biden-to-urge-allied-nations-for-more-ukraine-support-.html |
Foreign direct investment from Germany to China grew by about 30% in the first eight months of the year from a year ago, China's Ministry of Commerce said Monday.
I've been here on and off 40 years and I've never seen anything like this, where all of a sudden ideological decision-making is more important than economic decision-making.
Joerg Wuttke
president, EU Chamber of Commerce in China | 2022-09-21T02:15:18Z | www.cnbc.com | European businesses are rethinking their plans for a 'closed' China | https://www.cnbc.com/2022/09/20/european-businesses-are-rethinking-their-plans-for-a-closed-china.html | https://www.cnbc.com/2022/09/20/european-businesses-are-rethinking-their-plans-for-a-closed-china.html |
Matt Morlidge
"I am pleased to confirm that we will be racing in Monaco until 2025 and excited to be back on the streets of this famous Principality for next year's Championship on May 28," Domenicali said.
Michel Boeri, President of the Automobile Club of Monaco, added: "In the interest of the Formula One World Championship, and after several months of negotiations, we are proud to announce that we have signed a 3-year agreement with Formula One, and likely to be renewed. The 2023 Formula One Monaco Grand Prix will be held on Sunday 28th May, 2023." | 2022-09-21T05:18:01Z | www.cnbc.com | Formula 1 announces record 24-race calendar for 2023 season | https://www.cnbc.com/2022/09/21/formula-1-announces-record-24-race-calendar-for-2023-season.html | https://www.cnbc.com/2022/09/21/formula-1-announces-record-24-race-calendar-for-2023-season.html |
"If we are going to make lasting change happen, we need our mission to show up in everything we do β especially in how we commit our resources," said Lukas Walton, the grandson of Walmart founder Sam Walton. "That's why we are investing our endowment in companies, organizations and strategies that prioritize sustainable and equitable solutions." | 2022-09-21T07:33:06Z | www.cnbc.com | Billionaire Lukas Walton's family office fans impact investing push | https://www.cnbc.com/2022/09/19/billionaire-lukas-waltons-family-office-fans-impact-investing-push.html | https://www.cnbc.com/2022/09/19/billionaire-lukas-waltons-family-office-fans-impact-investing-push.html |
The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. Although that's not the rate consumers pay, the Fed's moves still affect the rates consumers see every day on things such as private student loans and credit cards.
"Any time consumers borrow, they are dependent on interest rates," whether that's for "housing, cars or appliances," said Tomas Philipson, a professor of public policy studies at the University of Chicago and former acting chair of the White House Council of Economic Advisers.
As a result, homebuyers' demand for mortgages has fallen by nearly a third since last year, and fewer borrowers could benefit from a refinance.
Here's what the Fed's interest rate hike means for you | 2022-09-21T07:33:54Z | www.cnbc.com | Here are 5 ways the next Federal Reserve rate hike could impact you | https://www.cnbc.com/2022/09/19/here-are-5-ways-the-next-federal-reserve-rate-hike-could-impact-you.html | https://www.cnbc.com/2022/09/19/here-are-5-ways-the-next-federal-reserve-rate-hike-could-impact-you.html |
Lukas Walton, the billionaire grandson of Walmart founder Sam Walton, is reinventing the family office β building a multi-billion-dollar funding machine that powers charities, tech start-ups, public companies and activists seeking global change. Walton, 36, last year launched Builders Vision, a one-stop-shop of impact investing based in Chicago with more than $4 billion in assets. It includes a venture capital firm, philanthropy and asset management, all managed by a team of 100 staffers. While most family offices separate philanthropy and investing, Walton has stitched them together into an impact-investing superstore β funding social and environmental causes through start-ups, public companies or charities. Or, as he likes to say, "from NGO to IPO." "What we're doing here is challenging," Walton told CNBC, in his first TV interview. "We're trying to tie together cultures from philanthropy, from impact investment, from venture capitalists, not to mention public markets and equity managers. That's three different cultures right?" According to the Bloomberg Billionaires Index, Walton has a net worth of $22 billion, largely through his 4% ownership of Wal-Mart, inherited from his father John Walton. Yet he is quickly forging his own path, focusing on three major global problems: sustainable food, ocean health and energy transition. His goals are personal. Growing up in San Diego, Lukas also spent time with his family camping, hiking and backpacking in the mountains of Colorado and the West. His father, the late John T. Walton, was a former Green Beret, venture capitalist, entrepreneur and adventurer who died in 2005 when his ultra-light aircraft crashed in Wyoming. Walton said his connection to nature drives much of his investing and philanthropy. "I have always appreciated the environment because of that exposure," he said. As a toddler, Walton was diagnosed with a rare form of kidney cancer. HIs mother, Christy Walton, shifted his diet to fruits and vegetables mainly grown in their garden -- which he credits for helping his recovery. Builders Vision was an early investor in SweetGreen and Beyond Meat and is funding dozens of other food-related start-ups including Soli Organic, an indoor-agriculture company, to Imagindairy, which makes animal-free milk proteins. Like many wealth creators and inheritors of his generation, Walton aims to prove that "profits and purpose go together." The Builders Vision venture capital fund, called S2G, is in the top quartile of venture capital funds by returns, according to Cambridge Associates benchmarks. Walton said screening all the investments β including stocks, bonds and other financial products β for ESG and impact-investing criteria has led to less volatility in the broader portfolio. Climate change, the food supply and ocean health are, after all, also investment risks, he said. "We're evaluating how [investment managers] are looking at a whole series of different risks that may not be captured in a standard due diligence profile," he said. "ESG is a tool. It's about looking forward to some of these systemic risks that create volatility. And develop better metrics to quantify those risks. I don't know an investor who wouldn't want that." Walton has long straddled the world of investing and social change. He majored in environmental science and economics at Colorado College, launched his own food start-up, worked for a sustainability investment firm in Chicago and chairs the Environmental Committee of the Walton Family Foundation. He's more comfortable in jeans and sneakers, and prefers to meet prospects at their farms or ocean labs than in a boardroom. But he admits he's just beginning his journey β and hopes other family offices will follow Builders Vision's example. "Always be open to new perspectives and be patient with yourself," he said. "Give yourself the grace of time. And talk to others. Talk to us."
More In The Family Office Investor
The Family Office Investor: Walmart heir blazes trail in ESG investing
Family offices invested a record $120 billion in startups last year, fueling a new wave of entrepreneurs
`If you're a great entrepreneur, you're likely a pretty bad investor,' says Hyatt Family Office founder. | 2022-09-21T07:34:31Z | www.cnbc.com | Inside the $4 billion family office of Walmart Heir Lukas Walton | https://www.cnbc.com/2022/09/19/inside-the-4-billion-family-office-of-walmart-heir-lukas-walton.html | https://www.cnbc.com/2022/09/19/inside-the-4-billion-family-office-of-walmart-heir-lukas-walton.html |
Student loan debtors are poised to get some breathing room after President Joe Biden unveiled a plan last month to forgive up to $20,000 per borrower in federal student loans.
Government programs like Social Security and Medicare take from younger generations and give to their elders while running huge deficits, Kotlikoff said. Student loans provided by the government similarly place an undue burden on younger Americans, he said.
That's occurring in a population of more than 40 million borrowers who hold $1.7 trillion in student loan debt.
"Bailing out some people, many of whom are still paying college loans off in their 60s, is not a sin," said Kotlikoff, who estimates there are about 3 million people in that age group who are still paying back student loan debt.
Another notable economist, Larry Summers, a Harvard University professor and former Treasury secretary under President Bill Clinton, who has panned Biden's student loan forgiveness plan as inflationary, also has backed the idea.
Such a move would also penalize private creditors rather than subsidize them as Biden's plan partly does, Summers wrote.
Kotlikoff proposes the maximum people should be able to borrow should not affect their median earners' lifetime living standard by more than 10%.
This would prevent parents from borrowing an unlimited amount on behalf of their children without any knowledge of who is going to repay the debt, he said.
It pays for itself in terms of more people being able to pay back.
president of Economic Security Planning
Taken together, eliminating super-high interest and giving people a chance at the lowest prevailing rate while not putting people in debt forever would make money in the long run.
"It pays for itself in terms of more people being able to pay back, but secondly there's productivity improvement in the economy," he said. | 2022-09-21T07:36:46Z | www.cnbc.com | These changes are a better student debt fix than Biden's forgiveness | https://www.cnbc.com/2022/09/19/these-changes-can-fix-student-debt-crisis-and-are-better-than-forgiveness.html | https://www.cnbc.com/2022/09/19/these-changes-can-fix-student-debt-crisis-and-are-better-than-forgiveness.html |
You've got to admit: The Federal Reserve is getting what it wants, if what it wants is lower stock and home prices. FedEx 's somewhat dire earnings commentary has everyone trying to reset the earnings expectations for the rest of this year and into 2023, but how much does that one company represent everyone else? Here are two key points: FedEx specifically cited "macroeconomic weakness in Asia and service challenges in Europe" which hit Express revenues. Companies presenting at the many sell-side conferences in the last two weeks did not paint anything close to the dire picture FedEx painted. Still, the talk over the weekend was again about resetting earnings expectations. What's the right price for the S & P 500 ? Michael Hartnett at Bank of America said that for the S & P 500, "we say nibble at SPX 3600, bite at 3300, gorge at 3000." Wow. The S & P 500 closed Friday at 3,873, and the June 16 bottom was 3,666, so 3,300 and 3,000 are a ways away. How do strategists get these kinds of numbers? The game goes like this. There are two variables in these estimates: What is the right level of forward earnings? What is the right market multiple (P/E ratio)? Current forward earnings per share estimates for the S & P 500 (Q3 and Q4 of 2022, and Q1 and Q2 for 2023) are at about $232. Based on Friday's close, that amounts to a multiple of 16.7. The multiple this year was as high as 21 in early January, and as low as about 16 in mid-June, so 16.7 is on the low side. The historic average is 15-17. Traders are back to believing that earnings will likely be reduced, so let's take an extreme case. Let's say the forward estimates gets cut to $200 β which is quite a haircut considering the S & P 500 printed $208.12 in earnings per share in 2021 β and expected to come in at $225 in 2022, according to Refinitiv. That would be a contraction in earnings, which would be consistent with a recession. Earnings almost always contract during a recession. Let's also assume we trade at the low end of the multiple this year, which is about 16. $200 x 16 = 3,200 on the S & P 500. That's about 17% below where we are now. Not surprisingly, that's where a lot of bearish types such as Hartnett have their estimates. That would be a 33% decline from the historic highs set in early January. That would be a fairly serious down market. Declines of 20% or more have happened 15 times since 1926, according to Dimensional Funds, but declines of 30% or more have happened only seven times since then. What about 3,000, the level Hartnett suggested investors should "gorge" on the S & P 500? Take the low estimate of $200, and throw an even lower market multiple of 15, and you have 3,000. A much lower multiple with a contraction in earnings: That is what you call a recessionary earnings picture. Grim real estate sentiment Sentiment is pretty grim in the real estate world as well. My wife has been a realtor for more than 30 years; she has seen a lot of up and down markets in that time, but the rapid rise in mortgage rates is really cooling off prices fast. I'll give you an example. She had a house for sale for $949,000 in a great neighborhood. When she put the house on the market a short while ago, interest rates on a 30-year mortgage were about 4.1%; they quickly went to 6.1%. After a few early nibbles, the buyers disappeared. She lowered the price to $899,000 and new buyers appeared. There are several interested buyers now. What happened? 1) people shop in price tiers: in the neighborhood she was showing, looking in the $700,000-$900,000 price range was common; 2) the higher rates were killing affordability. How much were the higher rates hurting? Let's just work with an $800,00 mortgage for 30 years. At 4.1%, that's $3,865 a month. At 6.1%, it's $4,847 a month. That's about $1,000 more a month, just from 4.1% to 6.1%. Bottom line: Lower mortgage rates definitely have been a factor in higher home prices for some time. Higher rates, particularly when they occur quickly, will cause buyers to bid lower to get the house they want. | 2022-09-21T07:36:59Z | www.cnbc.com | Traders worry there are more earnings warnings like FedEx's about to come out | https://www.cnbc.com/2022/09/19/traders-worry-there-are-more-earnings-warnings-like-fedexs-about-to-come-out.html | https://www.cnbc.com/2022/09/19/traders-worry-there-are-more-earnings-warnings-like-fedexs-about-to-come-out.html |
Russian-backed officials in several parts of Ukraine have announced plans to hold referenda on joining Russia. Ukraine has slammed the upcoming votes as fake attempt to legitimize Russia's invasion and slammed the prospect of "sham" ballots.
Russian President Vladimir Putin has called on Russian producers of military equipment to up their production and supplies to Russian troops. Putin was also set to give a major speech to the country on Tuesday β only to later postpone it until Wednesday without explanation.
Meanwhile, speaking at the United Nations General Assembly in New York, German Chancellor Olaf Scholz said Putin needs to recognize that he can't win the war, according to a report from Reuters.
"This is why we will not accept any peace dictated by Russia, and this is why Ukraine must be able to fend off Russia's attack," the chancellor said, Reuters quoted Scholz as saying.
Germany has contributed significant assistance to Ukraine but has been criticized for not giving the country more of its advanced weaponry.
'Polluters must pay,' U.N. chief says, urging global leaders to tackle climate change
Steam rises from cooling towers of the Niederaussem coal-fired power plant by twilight on January 11, 2022 in Niederaussem, Germany.
Andreas Rentz | Getty Images News | Getty Images
U.N. Secretary-General Antonio Guterres said developed economies should impose an additional tax on the profits of fossil fuel firms and those funds should be diverted to countries affected by climate change.
"Our world is addicted to fossil fuels, it's time for an intervention," Guterres said.
"We need to hold fossil fuel companies and their enablers to account. That includes the banks, private equity, asset managers and other financial institutions that continue to invest and underwrite carbon pollution," he added.
Nine more agricultural vessels approved to leave Ukraine
The Sierra Leone-flagged cargo ship Razoni, carrying Ukrainian grain, is seen in the Black Sea off Kilyos, near Istanbul, Turkey August 3, 2022.
The organization overseeing the export of agricultural products from Ukraine said it has approved nine more vessels to leave the besieged country.
The Joint Coordination Center, an initiative of Ukraine, Russia, the United Nations and Turkey, said that the vessels are carrying a total of 200,701metric tons of grain and other food products.
The ships are expected to depart on Tuesday and are destined for Germany, Bangladesh, Italy, the Netherlands, Spain and Turkey.
Biden taps Lynne Tracy as next American ambassador to Russia
President Joe Biden has tapped State Department veteran Lynne Tracy as the next American ambassador to Russia.
Tracy, who speaks Russian, currently serves as the U.S. ambassador to Armenia, a neighbor of Russia.
She previously served as the second-highest official at the American embassy in Moscow.
Tracy will replace John Sullivan as head of the embassy there.
Turkey's Erdogan offers to broker deal between Moscow and Kyiv to secure Zaporizhzhia nuclear power plant
Turkish President Recep Tayyip ErdoΔan speaks at the 77th session of the United Nations General Assembly at U.N. headquarters on September 20, 2022 in New York City.
Turkish President Recep Tayyip Erdogan said Ankara is willing to help broker negotiations between Russia and Ukraine in order to restore security to the Zaporizhzhia nuclear power plant.
The facility, Europe's largest nuclear power plant, was forcibly taken by Russian troops in the early days of the Kremlin's war in Ukraine. Both Moscow and Kyiv have accused each other of shelling and subsequent damage to the facility.
Erdogan said that Turkey's role in the Black Sea Initiative deal, which helped open three Ukrainian ports for agricultural exports, is an example of how Ankara can help address concerns around Zaporizhzhia.
"As a result of the intensive efforts we carried out together with the Secretary-General [Antonio Guterres], we made sure that the Ukrainian grain was able to reach the world through the Black Sea," Erdogan said before the international forum.
"A similar approach can also be displayed regarding the crisis at the Zaporizhzhia Nuclear Power Station, which concerns the safety of the entire humanity," he said, without providing additional details.
Mass graves in Izyum, Ukraine, may be βworseβ than in Bucha, Biden adviser says
U.S. National Security Advisor Jake Sullivan speaks to the media about the war in Ukraine and other topics at the White House in Washington, U.S., March 22, 2022.
Leah Millis | Reuters
White House National Security Advisor Jake Sullivan said his Ukranian counterparts tell him the mass graves discovered in Izyum, Ukraine, after Russian forces were pushed out, are in some ways "worse" than those discovered in Bucha.
Sullivan said he was briefed on the situation when he spoke with his counterpart, Ukrainian chief of staff Andriy Yermak.
"He gave me a report about what the Ukrainians were discovering around Izyum, and he put it quite bluntly: He said that this is in some ways worse than Bucha, and we will see more of these as we go, as Ukraine de-occupies towns that have previously been occupied by Russian forces. We are finding increasing evidence of these mass atrocities."
β Emma Kinery
Ukraine says Russian referendums will destroy possibility of negotiations to end war
Ukraine's President Volodymyr Zelenskiy attends a news conference, amid Russia's attack on Ukraine, in Kyiv, August 23, 2022.
Any referendums on joining Russia in Russian-occupied Ukrainian territories would destroy any remaining window for talks between Kyiv and Moscow, Ukrainian publication Liga.net cited the Ukrainian president's office spokesman as saying.
Blinken meets with Turkish counterpart, hails work on grain exports
Turkish Foreign Minister Mevlut Cavusoglu meets with US Secretary of State Antony Blinken in New York, United States on September 20, 2022.
U.S. Secretary of State Antony Blinken met with his Turkish counterpart on the sidelines of the United Nations General Assembly in New York City.
Blinken thanked Turkish Foreign Minister Mevlut Cavusoglu for Ankara's work in securing a sea corridor for Ukrainian agriculture products.
"I want to particularly praise the work that Turkey has done to help establish the grain port on the Black Sea that is allowing desperately needed food to get out of Ukraine and to the people who need it," Blinken said, according to a State Department readout of the meeting.
"I'm grateful for the work we're doing together as NATO allies and partners, many security challenges that we're facing together," he added.
Russian attempts to hold a referendum in parts of Ukraine will not be acknowledged, U.S. says
The Biden administration said Russian attempts to hold a referendum in parts of Ukraine will not be acknowledged and will not deter the U.S. and its allies from supporting Kyiv.
"It's part of their playbook and it's something we saw in 2014," Pentagon press secretary Air Force Brig. Gen. Pat Ryder told reporters during a daily briefing when asked about the potential referendum.
"They will use that as a basis to try and legitimize further annexation," he said, adding that the outcome will not distract the U.S. from its mission to support Ukraine.
At the White House, national security adviser Jake Sullivan called the referenda an affront to Ukraine's sovereignty and territorial integrity.
"We know that these referenda will be manipulated," he said, adding that the "United States will never recognize Russia's claims."
Zelenskyy talked about 'current security issues' with Turkey's Erdogan
Ukrainian President Volodymyr Zelenskyy said in a tweet that he discussed "current security issues" in a phone call with Turkish President Recep Tayyip ErdoΔan.
The tweet followed an interview ErdoΔan did Monday with PBS NewsHour, where he said Russia must return all land it has occupied, including Crimea.
ErdoΔan is one of only a handful of world leaders with continued ties to Russian President Vladimir Putin. He told PBS in an interview outside of the United Nations in New York, that when he met with Putin in Uzbekistan last week, Putin gave him the impression he was "willing to end this as soon as possible."
'Our world is in peril,' U.N. chief says in opening General Assembly address
United Nations Secretary-General Antonio Guterres addresses the 77th session of the United Nations General Assembly at UN headquarters in New York City on September 20, 2022.
"Our world is in peril and paralyzed," Guterres told world leaders attending the 77th United Nations General Assembly, which returned in person for the first time in three years.
"We are gridlocked in colossal global dysfunction," he said, adding that the international community "is not ready or willing to tackle" these challenges.
In addition to Russia's war in Ukraine, the U.N. chief urged global leaders to address the looming climate crisis, gender inequality and extreme poverty. He also pushed them to invest in policies that promote peace around the world.
WNBA players skip Russia in the offseason with Griner in jail
U.S. basketball player Brittney Griner, who was detained at Moscow's Sheremetyevo airport and later charged with illegal possession of cannabis, looks on inside a defendants' cage before a court hearing in Khimki outside Moscow, Russia August 2, 2022.
McDonald's reopens in Ukraine this week for first time since war began
McDonald's will begin to reopen its closed restaurants in Ukraine this week, which have been shuttered since the start of Russia's invasion in February.
Three locations in Kyiv opened for delivery only, Alesya Mudzhyri, McDonald's spokeswoman for Ukraine, said in a Facebook post. The company plans to reopen restaurants across Kyiv and western Ukraine in the coming weeks. By October, it plans to be able to let customers enter in person and resume drive-through service in the reopened locations.
McDonald's has 109 restaurants in Ukraine. The reopened locations will service from 9 a.m. to 9 p.m. but temporarily close during air raid alerts.
The company closed all 840 of its locations in Russia when the war began and sold franchises there. The former McDonald's locations reopened in June under a different name and ownership.
Biden set to rally allies in providing more support for Ukraine in U.N. General Assembly speech
President Joe Biden is expected to urge allies to continue supplying Ukrainian forces with Western arms in an era-defining conflict against Russia.
Biden's address to the 77th United Nations General Assembly on Wednesday comes as Russia's war in Ukraine marches past its 200th day, while governments continue to grapple with the fallout of the Covid-19 pandemic and as climate change uncertainties mount.
While the Biden administration is expected to hold several bilateral meetings on the sidelines of the United Nations, there are no plans to meet with counterparts from Russia or Iran.
Putin calls for boost to Russian weapon production
Russian President Vladimir Putin speaks during his press conference at the Shanghai Cooperation Organization (SCO) Summit on September 16, 2022, in Samarkand, Uzbekistan.
President Vladimir Putin called for a boost to weapons production in the country, signaling Russia could be looking to continue its invasion of Ukraine over the long term.
Speaking Tuesday at a meeting on the development of the defense industry, Putin said "organizations of the defense industrial complex need to ensure the delivery of the required weapons and equipment to the troops, weapons of destruction as soon as possible" and then added:
"It is necessary to increase production capabilities in the shortest possible time, maximize the load on equipment, optimize technological cycles and, without compromising quality, reduce production time," according to a translation by NBC News.
Russian-occupied territories push for votes on joining Russian Federation
Russian-backed officials in occupied parts of Ukraine announced Tuesday that they plan to hold referenda on officially becoming a part of the Russian Federation.
Officials in occupied Kherson in southern Ukraine have flagged an intention to hold a referendum on joining Russia β a move seen widely by analysts as an attempt for Russia to justify "defending its citizens" in such territories β as well as officials in Luhansk and Donetsk, which are where two breakaway self-proclaimed "republics" are located, known as the LPR and DPR.
These regions said Tuesday that they would hold referenda between Sept. 23 -27, according to Russian state news agency Interfax. Russian-occupied Zaporizhzhia is also reported to be preparing to hold a similar vote in the coming days.
Mosco has already begun a move to "Russify" areas it occupies, or where it supports separatists, by handing out Russian passports and promoting Russian culture. The moves to hold votes on joining Russia come as Ukraine continues counteroffensives to reclaim lost territory.
Ukraine's Foreign Minister Dmytro Kuleba responded to the reports on Twitter by saying "sham 'referendums' will not change anything."
Russian Foreign Minister Sergei Lavrov attends a ceremony of receiving letters of credence from newly-appointed foreign ambassadors at the Kremlin in Moscow, Russia, September 20, 2022.
Moscow-backed separatists in Kherson say they'll hold referendum on joining Russia
People arrive to receive Russian passports at a center in Kherson, which is occupied by Russian forces. Russian President Vladimir Putin signed decree to make it easier for residents of Kherson and Melitopol regions to get passports, in Kherson, Kherson Oblast, Ukraine on July 21, 2022.
Moscow-backed officials in occupied Kherson in southern Ukraine say they'll hold a referendum on joining Russia.
Volodymyr Saldo, the head of the Russian-backed administration of the Kherson region, said on Telegram Tuesday that " the leadership of the Administration of the Kherson region decided to hold a referendum on the entry of the Kherson region into the Russian Federation."
Pre-empting the result, Saldo said "I am sure that the leadership of the Russian Federation will accept the results of the referendum and the Kherson region will become a part of Russia, becoming a full-fledged subject of a united state."
Saldo's comments come as Ukraine's counteroffensives in the northeast and south of the country prompt Russian-installed officials to try to organize referenda, with the aim of legitimizing Russia's "defense" of such territory in the likely result of the majority of people voting to join Russia. Referenda in occupied parts of Ukraine are widely seen as illegitimate by the international community. Russia has already tried to "Russify" occupied parts of the country, such as by handing out Russian passports, as in the image above.
There was no mention of when such a vote in Kherson could take place.
Saldo said he was "sure that the entry of the Kherson region into the Russian Federation will secure our region, as well as open up new opportunities on the path to returning to peaceful life and become a triumph of historical justice."
The Russian proxy leaders of two breakaway republics in the Donbas in eastern Ukraine also look likely to try to hold similar votes in Luhansk and Donetsk. | 2022-09-21T07:38:39Z | www.cnbc.com | Live updates: Latest news on Russia and the war in Ukraine | https://www.cnbc.com/2022/09/20/battle-to-liberate-russian-occupied-luhansk-leaves-proxy-leaders-worried-uk-pledges-to-match-support-for-ukraine-in-2023.html | https://www.cnbc.com/2022/09/20/battle-to-liberate-russian-occupied-luhansk-leaves-proxy-leaders-worried-uk-pledges-to-match-support-for-ukraine-in-2023.html |
Although last week's railroad workers' strike did not happen, the number of strikes and the number of participants that took place within the U.S. in the first half of the year have shown a significant increase.
According to Cornell University, there were 180 strikes involving around 78,000 workers in the United States in the first half of the year, up from 102 strikes involving 26,500 workers in the same period last year.
One of the main reasons for the frequency of strikes is the increased pressure on the cost of living due to the current high inflation in the US. Workers are demanding wage increases from companies by going on strike. This chart shows that although the average hourly wage has been rising in the private sector of the U.S. economy, it still didn't outperform inflation.
Tyler Goodspeed
Cato Institute adjunct scholar
"Indeed, for two of the past three months, we've actually had the aggregate wage bill in the economy, not keep pace with inflation. And so I think that there's going to be a lot more pressure coming from labor for wage hikes just to get even with the inflationary pressure that we've seen over the past year and a half."
And with the railroads reaching a tentative agreement with unions to give workers a 24 % pay increase over the five years from 2020 to 2024. A lawyer who has studied U.S. labor contracts then said that many unions in other industries are now using the agreements reached by railroad unions as a measure of bargaining success. That means more wage increases will be possible, and that may also heat up inflation further.
In addition to workers demanding wage increases in the context of high inflation. The current tight labor market in the U.S. is also leading companies to raise salaries to recruit talent when they are hiring.
This chart shows the number of job openings and the number of unemployed job seekers in the U.S. as of July this year. The ratio of these two is almost the highest since records began in the 2nd millennium. This is a reflection of the oversupply of labor in the United States.
The background of high inflation, combined with the current shortage of workers, has led the market to fear that this could lead to the "wage-price" spiral that occurred in the 1970s. Specifically, in the context of high inflation, the cost of living has increased and workers are demanding wage increases, but with higher wages, people's consumption will increase and companies will pass on the costs, thus further raising prices and reinforcing inflation. A vicious circle is thus formed. And hyperinflation will lead to the overall weakening of the economy.
Greg Branch
Founder of Veritas Financial
"Because wage growth isn't keeping pace with inflation. And so instead of a segment of us having less spending power, all of us effectively have less spending power, and that can have the same recessionary impact that high unemployment."
In the Fed's fight against inflation, Powell has repeatedly mentioned that he would like to see the growth in labor market to slow down in order to lift the pressure on inflation.
So what will the Fed rate decision be like on this week's FOMC? And will it succeed in influencing the U.S. labor market? Let's wait and see. | 2022-09-21T07:38:45Z | www.cnbc.com | CCTV Script 19/09/22 | https://www.cnbc.com/2022/09/20/cctv-script-19/09/22.html | https://www.cnbc.com/2022/09/20/cctv-script-19/09/22.html |
The report from CreditCards.com published on Monday shows that a growing number of U.S. consumers are falling into longer-term credit card debt. Let's first take a look at the specific data.
Forty percent of U.S. credit card debtors say they have been in debt for more than two years, 28 percent for more than three years, and 19 percent for more than five years, while another 8 percent say they can't even remember how long they've been in credit card debt.
There are various reasons for the perpetuation of debt, one of which is emergency spending. According to the report, 46 percent, or nearly half, of credit card debtors said the main reason for going into debt was an urgent need for money or an unforeseen situation.
Another important reason is the rising cost of living. Due to high prices, many Americans are borrowing on credit cards to pay for various living expenses.
As of the second quarter of this year, data from the New York Federal Reserve showed that U.S. consumers' credit card debt, totaling $887 billion, $46 billion more than the first quarter and also up 13 percent from a year ago. This is the largest increase in 20 years. Meanwhile, in the second quarter, U.S. consumers opened 233 million new credit card accounts, the largest number since 2008.
And in addition to high inflation, consumers are also being hit by high interest rates. People are spending all their savings and turning to credit to spend, but the Federal Reserve has been raising interest rates to curb inflation and driving up credit card repayment rates.
The latest data show that in the past five months, the average interest rate on credit card payments in the U.S. market has risen from 16.5% in May to 18.1% in September. Economist Richardson described this as a "double whammy."
It means that consumers not only have to bear the burden of high prices, they also have to pay more money on top of that to pay off the rising cost of borrowing.
Emergency spending, high inflation, and high interest rates are all making it harder for consumers to get out of debt. And if the Fed continues to raise rates by 75 basis points this week, as the market expects, Americans carrying long-term card debt will face higher repayment balances, meaning it will take them longer to pay off their debt. And we will keep a close watch. | 2022-09-21T07:38:51Z | www.cnbc.com | CCTV Script 20/09/22 | https://www.cnbc.com/2022/09/20/cctv-script-20/09/22.html | https://www.cnbc.com/2022/09/20/cctv-script-20/09/22.html |
Although it may not feel like it, the cryptocurrency industry has reason to celebrate. True, it's been a bumpy ride this year β and for a good while, it seemed like a never-ending downhill trip. But Bitcoin is no stranger to plunges. The reason for jubilation is that while there has been lots and lots of pain, there haven't been the same fears about bitcoin's survival and what happens next. That's thanks in part to recent wins that give the young asset class some legitimacy. It's also because investors understand better why it moves and how it trades: the Fed is steering this ship now β and crypto traders, like stock traders, are waiting with bated breath for the central bank's next signal later this week. Bitcoin's correlation with stocks hit an all-time high in August, after failing (by many accounts) to realize its potential as the inflation hedge so many bitcoiners had espoused. "For whatever reason, whether we willed it to be so or it became technically so, crypto is trading like a risk equity asset," said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs. "It was like 'let the good times roll' and then when those good times came to an end, crypto crashed like everything else," she said. "It just tells me that it's going to be the riskiest of risk assets, and it will behave and recover like equities will." Several events brought us here. President Joe Biden 's executive order on crypto in March sent a message loud and clear to the crypto world and beyond that although the path to clear regulation has been foggy, the government is on its side. Then, last month bitcoin had fallen more than 70% from its all-time high in wake of Terra's collapse. The financial contagion resulted in the loss of billions of dollars, after hackers stole $1.4 billion using crypto bridges. But the largest asset manager in the world gave many bitcoin believers the ultimate bullish signal by opening trading of the cryptocurrency to its institutional clients. In any other year, the bitcoin price would have skyrocketed after the BlackRock announcement, but it didn't. Eyes and ears on the Fed With crypto shadowing stocks and inflation dominating all markets, the Federal Reserve has a much bigger influence on crypto than it ever has before. (Bitcoin is, after all, rooted in anti-establishment beliefs.) Investors say it pushed crypto into the well with its rate hiking plan, and that it's on the central bank to pull it back out. "This is the first time we've seen quantitative tightening to the degree that we have since the invention of bitcoin," said Valkyrie Investments chief investment officer Steve McClurg. "There's definitely a drag on all markets due to the Fed continuing to take liquidity out of the system, and we don't expect a true bottom to form until there's a pivot either sideways or directionally the other way from the Fed." Bitcoin hit its all-time high on Nov. 8, less than a week after the Fed first introduced the tapering . With almost every Federal Open Market Committee meeting this year, the Fed has gotten more aggressive, and bitcoin's correlation with stocks has risen, while its price has fallen. Investors seemed to relax at the conclusion of the Fed's July meeting, in which Chairman Jerome Powell hinted that the central bank could begin to slow hikes to assess their impact. However, his speech at the central bank's Jackson Hole Economic Symposium the following month, where he warned that there was "some pain" ahead , rocked markets once more. Bitcoin hit what many believe to be its low of the cycle, $17,601.58, according to Coin Metrics, in June. Some technical analysts, however, see an opportunity for the cryptocurrency to turn lower β possibly as low as $12,500. Time, economic data and messaging after the Fed's meeting Wednesday will tell. "The Fed will probably raise rates 75 basis points this week, while issuing forward guidance on raising rates at a smaller clip for November and December meetings, likely at 50 basis points each," McClurg said. "This isn't a change in direction from Fed tightening," he continued. "β¦Until they change direction, by either pausing rate hikes or going the other way, we will be mostly risk-off as this spells lower prices in equities and crypto. Equities markets will likely move 20% down from here, with bitcoin likely retracing less." Mistaken identity Bitcoin's about-face is no mystery. In 2021, the cryptocurrency became institutionalized. After star investors like Stan Druckenmiller and Paul Tudor Jones named it as an emerging inflation hedge, other hedge funds jumped in and began trading it. Unlike early investors that would buy and hold on to it for dear life, or "HODL," the new investors day-traded it, and as a result, they've been moving the bitcoin price more than the less active HODLers. "Bitcoin OGs want to believe that it's a risk-off asset β that's a long-term trajectory," said Burak Tamac, senior researcher at CryptoQuant. "In the short term, it's kind of confined to the rules traditional investors play by." Bitcoin's correlation with the S & P 500 rose to an all-time high this year. Some investors hoped to see the two decouple, particularly in February when Russia waged war on Ukraine and bitcoin briefly appeared to be a safe-haven asset in a time of great uncertainty. It hasn't happened yet, though. It doesn't mean bitcoin's future is doomed, but at least in the short term, bitcoin has really just become a 24/7 VIX β an extension of the Nasdaq." Chief investment officer, Arca Jeff Dorman It's not the first time the identity of bitcoin has morphed. Some investors continue to keep their distance from it for that very reason, unsure about how to value the asset. And it's unlikely it will be the last. For many, the beauty of bitcoin lies in its ability to satisfy any thesis , be it a risk asset, digital gold, an alternative system or a revolutionary technology. "I look at bitcoin as an independent investable asset class," Jablonski said. "I would not invest in it because I believe it could be an inflation hedge, I'll invest in it because there's innovation there, practical use cases, there's been growth, commercial adoption, a massive increase of both retail and institutional users. That makes it interesting and gives it potential to grow in price appreciation." For others, however, bitcoin has become just more boring than that. Arca chief investment officer Jeff Dorman said bitcoin has become a macro asset in large part because the cryptocurrency has lost its narrative. "It hasn't proven to be defensive. β¦ It's not proving to be an inflation hedge. It certainly isn't being used as a medium of exchange β dollar stablecoins have taken over for that," he told CNBC's "Crypto World." "It doesn't mean bitcoin's future is doomed," Dorman said, "but at least in the short term, bitcoin has really just become a 24/7 VIX β an extension of the Nasdaq. It's trading in lockstep with equities and the macro environment, whereas other digital assets are starting to move more idiosyncratically." Down bad, but still buying Bitcoin's 70% drop is not the largest peak-to-trough decline the cryptocurrency has seen, but it is the first time many new investors who entered the market in the past couple of years have experienced such a steep slide. Data shows there's confidence in the market, however. According to CryptoQuant, investors that entered the market in the past six to 18 months are still consistently accumulating bitcoin; meaning they bought it, are holding it and are buying more. "People aren't that scared this time," he said, attributing the sentiment to their taste of the first bull run after a crash. Bitcoin rose to a high of about $64,000 in April, and after a summer slump, hit its all-time high of $69,000 in November. "In previous cycles, when we saw the all-time highs followed by the bear market, it would take years to see the next all-time high. When the bitcoin price dropped dramatically in May 2021, people expected there to be a bear market for a long time, but it only took until November to recover and see the next all-time high." However, Tamac said the runup to it was different from those before it. The period of accumulating and selling over the past year and a half is distorted, he said. Long-term holders (those holding for 155 days or more) typically sell their bitcoin to short-term holders (55 days or less) at the market top, and begin accumulating at the bottom. However, after bitcoin hit its April high, it didn't see that typical period of high distribution, Tamac said. Instead of selling, investors in May accumulated, and continue to today. "That's a good thing because the newbies got this four-year experience in one year, so to speak," he added. Lessons from crypto contagion Besides the fact that investors continue to hold and buy more even in the face of this year's downturn, some long-term good came of all the destruction. Aside from macro drivers, crypto has the added handicap of the stain left by the financial contagion stemming from the collapse of Terra in the first half of the year. That triggered a sell-off that ultimately contributed to the fall of Three Arrows Capital and crypto lenders Celsius and Voyager, and billions in investor losses. It also bruised an industry that's been so zealous in its attempts to adjust the balance of power between "the big guy" and "the little guy." "If you can't access your money, whether it's in crypto or anything else β we've probably lost some investors in crypto because of those types of events that happened," Jablonski said. However, she added, "I think that'll pass and that the bigger picture of the opportunity in crypto remains uncontested." If anything, that catastrophe demonstrated more about the flaws in the traditional banking system that bitcoiners have sought to reinvent, according to Felix Hartmann, managing partner of Hartmann Capital. That's because private, centralized companies that took the spotlight like Celsius and Three Arrows Capital were able to remain tight-lipped about how much leverage they had. Meanwhile, many have been quick to point out that decentralized finance platforms like Compound and Aave β which use self-executing smart contracts to make sure lenders are paid back in situations of market turmoil β continue to function as designed. "People gave money to Celsius, people gave money to BlockFi," he said, calling them "wolves in sheeps' clothing." "That's a lot more like what happens with banks than with crypto, because ultimately you give it to an opaque institution, and they do with it what they want. They trade it, they invest it, they make deals with it." "With DeFi, everything is fully transparent on-chain, so you can see what happens with your money, and that the yields go straight to you, versus becoming cuts taken by banks or companies like Celsius," Hartmann said. In the future, "people will trust platforms like Aave and Compound and MakerDAO more than they trust the next Celsius because they will ask, 'what are you doing with our money?' And the best way to transparently show it is on-chain, which is what this industry is here for," he said. Currently, Ethereum and Solana are the most popular blockchains for developers working on decentralized finance apps, but there are several developers working to build DeFi, NFTs, and other apps and smart contracts on top of Bitcoin. They argue that bitcoin can be a more productive asset than something you buy and hold while watching the price move. 'Institutional adoption' as a catalyst Two years ago, MicroStrategy did an unthinkable thing: it adopted bitcoin as its primary treasury reserve asset, acquiring 21,454 bitcoins at an aggregate purchase price of $250 million or roughly $11,653 per bitcoin. That alone was a bigger catalyst for the bull run of a few months later than most people remember. It wasn't just the hedge funds that drove bitcoin's price surges last year; investors rallied around the idea that more companies could start to do the same, and push the price of bitcoin to new highs. Tesla and Square (now known as Block ) followed in putting bitcoin on their balance sheets in February 2021, helping fuel bitcoin's first price run-up that year. Cathie Wood's Ark Invest estimated that if 1% of the corporate cash of every company in the S & P 500 were converted into bitcoin, the bitcoin price would balloon by more than $40,000 ; if each company converted 10%, then $400,000 was a reasonable outlook for bitcoin. "Institutions trading bitcoin and institutions holding bitcoin are two different things," Tamac said. "When they put bitcoin on their balance sheet, that takes those bitcoins from the market and they hold it, and they don't sell it. They actually drain the supply. Their intention is not to make a profit in six months or one year." The hype eventually faded away, largely because of regulatory uncertainty at the time. "Institutions hesitate to take initiative as much as they would if the government provided clear, understandable and easy-to-follow regulations," Tamac said. "ESG is one of them because there is still uncertainty about the government's stance on bitcoin mining and the energy use." Anxiety about the negative environmental impact of crypto seems to be taking a turn now, thanks largely to Ethereum's transition from proof-of-work to proof-of-stake last week, also known as the merge, which cut the network's energy consumption by more than 99% . It's bitcoin that's received so much hostility about being environmentally unfriendly, but myths about the cryptocurrency's environmental impact are slowly being debunked . When BlackRock announced its bitcoin trust last month, it said it's "encouraged" by energy nonprofits committed to transparency around "sustainable energy usage in bitcoin mining." That could encourage other institutions to rethink their stance. The next bull run If there's a day when institutions begin holding bitcoin, it seems far away for now, especially after Tesla sold 75% of its bitcoin holdings over the summer. It's one of three scenarios that could initiate the next really big bull run, along with the approval of a spot bitcoin ETF and more countries adopting bitcoin like El Salvador did last year, according to Tamac. Callie Cox, an analyst at retail brokerage eToro, said the time horizon for companies making bitcoin part of their corporate treasury strategy is a long way off, but she's confident the upswing will mirror that of NFTs last year β though maybe not as suddenly. At this point in time, crypto might be in a better place relative to other markets because of how far it fell amid the financial contagion in the first half of the year, Valkyrie's McClurg said. Still, he sees recent upward moves as "macro market bull traps" and said he expects all markets to go down another leg from here. Though bitcoin topped $25,000 last month following its June lows, chart analysts still expect to see it sink again , maybe as low as $12,500 this year. Beyond bitcoin, crypto remains just a little too out of reach for many. That's true for even some of the biggest successes like decentralized exchanges and NFT platforms like OpenSea, according to Hartmann. It's been more than a decade, but crypto "hasn't really hit the mainstream outside of the speculation aspect," he said. "Crypto as an asset needs to really find a new narrative for itself because the reality is that over the next two to three years prices will be highly correlated to tech stocks," Cox said. "There's a lot of innovation happening," she added. "These explosions in lending platforms have not been a step forward for the industry, β¦ but people have never seemed more optimistic, committed or certain of crypto's survival. When prices drop and it's not all about financial speculation, then we have the space to discuss the transformative non-financial use cases of blockchain."
As markets get wrecked, these are the trades working on Tuesday | 2022-09-21T07:39:10Z | www.cnbc.com | Cryptoβs bear market is unlike others before it. This time the Fed's steering the ship | https://www.cnbc.com/2022/09/20/cryptos-bear-market-is-unlike-others-before-it-this-time-the-feds-steering-the-ship.html | https://www.cnbc.com/2022/09/20/cryptos-bear-market-is-unlike-others-before-it-this-time-the-feds-steering-the-ship.html |
Copper demand is set to surge, Goldman Sachs says β and supply is unlikely to keep up. The investment bank has named a number of metal stocks it says will shine in a copper deficit scenario. Along with the "green transition" driving a surge in demand for copper, Goldman noted that new supply from approved projects will peak in 2024. After this, there are no significant copper projects planned until 2027 or 2028, it added. "While supply growth appears muted from 2024, demand is likely to accelerate given the push towards a low-carbon economy and growing green copper demand," Goldman analysts wrote in a Sept. 13 report. Copper is a critical component in electric vehicles, used in batteries, wiring, charging points and more. It's also used in batteries for energy storage, as well as in generating wind and solar power. Goldman also pointed out another challenge for the metal: it's getting increasingly hard for companies to obtain social and environmental licenses to construct and operate new mines. "Given growing wariness among environmental and indigenous groups of potential negative impacts of mining on water, land, biodiversity and emissions, governments are increasingly withholding/withdrawing licenses for mining operations," the bank wrote. It said that's set to cause progressively larger deficits in key base metals β including copper β heading into the middle of this decade. Some firms are set to stand out against this backdrop, according to Goldman's analysis. These metal mining companies, over a five-year horizon, "hold some of the strongest growth projects that are highly profitable and could materially lift their future cashflows and production." They include: First Quantum , Teck Resources , Anglo and Oz Minerals . A S & P Global report from earlier this year also forecast spiking demand for the red metal, with copper needed for EVs, wind, solar and batteries tripling by the middle of the next decade. A new copper mine takes 16 years, on average, to get off the ground, according to the International Energy Agency. Battery stock pick Separately, Goldman in the same report said it has upgraded Freyr Battery to a buy. The bank said the stock is set to be a key beneficiary of the recent U.S. Inflation Reduction Act . The act has a vast reach in the renewable energy sector, providing $369 billion for energy security and clean energy provisions. Goldman added that Freyr Battery's upcoming gigafactory, set to start production in 2025, may enjoy a potential capital expenditure reduction by around 60% as a result of the Inflation Reduction Act. | 2022-09-21T07:39:41Z | www.cnbc.com | Goldman: Top copper stocks amid looming shortage, spiking demand | https://www.cnbc.com/2022/09/20/goldman-top-copper-stocks-amid-looming-shortage-spiking-demand.html | https://www.cnbc.com/2022/09/20/goldman-top-copper-stocks-amid-looming-shortage-spiking-demand.html |
Consistent returns may seem hard to find amid a topsy-turvy stock market and soaring Treasury yields. Yet there are certain names that have proven to benefit in this environment. Stocks have been volatile in recent weeks, as investors anticipate the Federal Reserve's next move. The latest hot inflation report dashed investors' hopes of a more accommodative Fed, which has already raised rates four times this year. The central bank, which kicked off its September meeting on Tuesday, is expected to announce a 0.75 percentage point rate hike on Wednesday. Meanwhile, bond yields have spiked, with the 2-year Treasury hitting a fresh 15-year high and the 10-year trading near levels not seen since 2011. To find the best and consistent S & P 500 performers in an environment like this, CNBC Pro looked at the 10 biggest monthly moves in the 10-year Treasury yield over the past five years. These stocks had the biggest median percent gain during those 10 months of rate spikes, according to FactSet's data. They were also consistent, not losing more than 5% during any of these months of higher rates. Energy stocks were excluded due to their unique and outsized move during the past 12 months. What follows are the top 10 under-the-radar stocks poised to outperform as the central bank continues to hike interest rates. Topping the list are agriculture company Archer-Daniels-Midland and health care services provider McKesson Corporation , both of which have seen a median move of 5.4% during the 10 months of rate spikes on the 10-year Treasury. Archer-Daniels-Midland, up 27% year to date, posted quarterly per-share earnings and revenue in late July that beat Wall Street's estimates. McKesson Corporation is up nearly 40% in 2022. On Monday, the company announced it would acquire private pharma tech firm Rx Savings Solutions for $875 million. A handful of financial stocks also made the cut. Fleetcor Technologies saw a median move of 4.4% and shares of Hartford Financial Services had a median move of 4.3%. Commercial lines insurer W.R. Berkley had a 2.6% median move during the 10 months of rate increases. Meanwhile, real estate investment trust Host Hotels & Resorts saw a 3.1% median move. Fleetcor and Hartford Financial are both down so far this year, about 11% and 6%, respectively. W.R. Berkley has gained 20% year to date, while Host Hotels & Resorts is up about 0.5%. Higher interest rates are generally a positive development for insurers and banks. Insurance companies benefit from rising bond portfolio yields as they snap up newer issues. Meanwhile, banks get a boost to their net interest income β that is, the difference between what the institutions earn on interest-bearing assets and the cost of paying interest to customers on deposits. Host Hotels & Resorts was recently added to Goldman Sachs' ROE Growth basket, which contains 50 stocks with the highest consensus expected ROE growth during the next 12 months. ROE is a widely used metric to gauge the profitability of a company and is the measure of a company's net income divided by its shareholders' equity. | 2022-09-21T07:40:05Z | www.cnbc.com | History shows these under-the-radar stocks will win during rate hikes | https://www.cnbc.com/2022/09/20/history-shows-these-under-the-radar-stocks-will-win-as-the-fed-continues-to-lift-interest-rates.html | https://www.cnbc.com/2022/09/20/history-shows-these-under-the-radar-stocks-will-win-as-the-fed-continues-to-lift-interest-rates.html |
JPMorgan expects that Luminar , despite having a smaller order book than its peers now, will have the highest revenue exiting the decade. The company has differentiated itself as a supplier of light detection and ranging technology, or LiDAR, for autonomous vehicles through focusing on its software stack, JPMorgan analyst Samik Chatterjee wrote in a note to clients when initiating the stock as overweight. "Luminar will likely be the largest pure-play LiDAR supplier at the end of the decade, and the supplier with the highest margins, and the only supplier we expect not to require incremental capital to navigate a ramp," Chatterjee said Tuesday. In the wake of his report, Luminar shares are up more than 4%. The analyst set a price target of $30 by December 2023, which implies the stock will more than triple in value. Luminar shares have fallen about 61% from their 52-week high. Chatterjee said Luminar is positioned to generate the most revenue of its peers since it already has numerous relationships with automakers including Volvo , Nissan and Mercedes . He said Luminar is expected to be the "supplier of choice" in the long run due to its engagement and design. The Orlando-based company has also invested in its software stack with Zenseact, which Chatterjee sees as a differentiator that will help Luminar outgrow peers solely focused on hardware. "We believe Luminar is focused on L3+ applications and most engagements are going to be long-term in nature, with customers looking to work with the company through multiple iterations of L3+ autonomous systems in the coming years," Chatterjee said. Chatterjee forecasts Luminar will earn $7.25 per share on $6 billion in revenue by 2030. Having ended 2021 with a cash balance of about $750 million, the company is not in immediate need of additional capital, he said. Luminar went public through a SPAC in late 2020, which made the then-25-year-old chief executive one of the first and youngest people to become a billionaire within the self-driving space. It is one of many seeking to capitalize on growing interest in self-driving vehicles. Some in the industry, including Tesla 's Elon Musk, have cast doubt on LiDAR's necessity. But Chatterjee said the debate around LiDAR's inclusion has been "long settled, with decisions to exclude LiDARs largely a cost-based decision rather than performance." β CNBC's Michael Bloom contributed to this report. | 2022-09-21T07:40:42Z | www.cnbc.com | JP Morgan says Luminar will lead the autonomous vehicle sector | https://www.cnbc.com/2022/09/20/jp-morgan-says-luminar-will-lead-the-autonomous-vehicle-sector.html | https://www.cnbc.com/2022/09/20/jp-morgan-says-luminar-will-lead-the-autonomous-vehicle-sector.html |
Billionaire investor Leon Cooperman said Tuesday that he's having a "decent" year relative to the major stock indexes, despite the latest market turmoil. The chair and CEO of the Omega Family Office said he's keeping his expectations low as investors are still stuck in a bad environment, thanks to continued inflation and rising interest rates. "The market really isn't cheap," he told CNBC's " Squawk Box ." "It's a very strange market, the indices themselves have no destination for me but I find a lot of individual stocks that are attractively priced β¦ but I'm not expecting much in the market." He highlighted Cigna, Energy Transfer and Lithia Motors as some of his favorites. He also mentioned Canadian gas producer Tourmaline. About 22% of his portfolio is in energy stocks, he said. This is the criteria Cooperman said he uses when looking for individual stocks: A "two-cycle tested" company, one that's "been through a couple of recessions and didn't get blown apart" Dividend income Companies that buy back their stock when it's undervalued "Quality, reliable" management A discount to market valuation Cooperman also said he's avoiding bonds. Shortly after stocks began selling off at the start of the year, Cooperman told CNBC they still represent "the best game in town" and are "the best asset in a bad neighborhood." He's also said 4,800 is likely to be the S & P 500 high "for quite some time" and that the Federal Reserve's aggressive tightening will tip the U.S. economy into a recession next year. Here's Cooperman's full interview from Tuesday: | 2022-09-21T07:41:00Z | www.cnbc.com | Leon Cooperman sees lots of cheap stocks today. What he's buying | https://www.cnbc.com/2022/09/20/leon-cooperman-sees-lots-of-cheap-stocks-today-what-hes-buying.html | https://www.cnbc.com/2022/09/20/leon-cooperman-sees-lots-of-cheap-stocks-today-what-hes-buying.html |
Call it The Bizarro Market. Stock investing in the current environment has been kind of like that 1990s "Seinfeld" episode of a similar name, where seemingly familiar dynamics are off kilter. Forecasting economic conditions in an attempt to navigate financial markets has never easy. But if you're feeling like it's been exceptionally weird lately β and perhaps just plain upside-down β you're not alone. Some of the most successful investors in the world have said the same thing. Here's how hedge fund pioneer Stanley Druckenmiller put it in a recent interview : "With the caveat that I've been doing this 45 year, and between the pandemic, and the war, and the crazy policy response in the United States and worldwide, this is the hardest environment I've ever encountered to try and have any confidence in a forecast six to 12 months ahead." Here's a look at why the combination of economic and geopolitical forces at play are forcing us to consider that what's worked in seemingly similar situations in past may need a fresh perspective. We also want to look at how you can cope in these crazy times and stay invested for when the bear market turns, which can happen very quickly. Trifecta of challenges We've talked about the three things dogging the market: the Federal Reserve's fight against inflation, Russia's unprovoked war in Ukraine, and China's rolling lockdowns in the pursuit of an unattainable zero-Covid policy. The historical playbooks for dealing with any one of these crises might work if only one of these events were happening. But that's not the case. As Jim Cramer wrote Sunday , another 75-basis-point interest rate hike by the Fed at the conclusion of Wednesday's meeting is the consensus, so the commentary at Fed Chairman Jerome Powell's post-meeting news conference may be important than the rate action itself. The 2-year Treasury yield , already at 2007 highs, has been pushing toward 4%. We view as a signal that central bankers might be content with 4% as the terminal fed funds rate, which would make a move to a target range of 3% to 3.25% would be getting close. Perhaps, we have the visibility into the Fed β Russia and China not so much. What makes the taming inflation part of the equation even more complex is the Fed wants demand destruction. They want to stamp out inflation, but also make people worried enough to have to go back into the workforce. Relentless rate hikes are a blunt tool β and while servicing to lower prices, they're also sinking asset levels such as stocks and home values. If people feel they need to work and that jobs due to the slowing economy might not be so plentiful after all, they might not job hop for more and more money. That would help bring down wage inflation. How many times have you heard over the past three years that we are in "unprecedented times." Ironically, we have heard this "we've never seen this before" narrative a lot in recent years. In reality, we've seen high oil, we've seen high inflation, we've seen wars in Europe and tension with China. Ultimately, these issues will be resolved. The journey will likely be painful but ultimately we will get to the other side. Don't panic, stay disciplined So, rather than panic, a useless emotion in investing, look to simplify this incredibly confusing and complex market environment. One way to go about that is to focus on underlying company fundamentals both in terms of how the current environment may impact them but also on a longer-term basis. Doing so will help you determine where and when to put money to work. If you think you're looking at the stock of a company that has been broken by recent events, then there is likely no good level at which to put money to work β remember, it's okay to hang on to a broken stock, not a broken company. On the other hand if you're looking at the stock of a company that's being hurt in the near-term but continues to have a bright long-term path ahead of it β such as high-quality, profitable tech and semiconductor names like those we own β that may be one to keep watch when you ultimately put money to work. However, it will depend on your view of when you think the company will be facing peak pressure from the current economic conditions we're contending with. You may experience losses before you see gains, but that's where the long-term investment horizon comes into play. Ask yourself, will we be shopping online more or less in three, five or 10 years? Will more workloads move to the cloud over the next decade? Are semiconductors going to have a greater presence in our daily lives or less so as we move into the future? If you're looking at a company that has been beaten down but may provide for something of a safe haven in a global economic downturn then you may decide to be a bit quicker to pull the trigger β as we did on Friday with our purchase of Procter & Gamble (PG). We don't view this time as one for lots of buying. However, we did buy more shares of Danaher (DHR) and TJX Companies (TJX) on Tuesday in a down market. Bottom line Famed investor Warren Buffett is credited with saying: "Investing is simple, but not easy." By focusing on the underlying fundamentals, thinking through why you got involved with an investment in the first place, sticking to your discipline/process, and watching longer-term trends, we can simplify the process of investing in this market. That won't make seeing red in your portfolio any easier but will help in ensuring that your emotions don't get the best of you when your initial reaction is to make for the exit, a move that has historically been wrong. Market studies have shown that only a handful of days per year are the kind of pivotal moments where all the money is made. Nobody knows when those days are going to be. The only to make sure you're not left out of the big recovery is to be invested in stocks. We have been grinding away during this year's bear market to find companies that can hold-up β or at least not as bad as others. We have a larger than normal cash position as well to start buying with both hands when it looks like one or all three market challenges β remember, Fed, Russia and China β are going to abate. In the end, this is an incredibly difficult market to navigate from the perspective of trying to figure out the next six to 12 months, nothing is going to change that. however, by sticking to our discipline, we can simplify the process, ensure that we are in control of our emotions, and put ourselves in a position to benefit when things ultimately normalize. (Jim Cramer's Charitable Trust is long PG, DHR and TJX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Traders work during the opening bell at the New York Stock Exchange (NYSE) on August 16, 2022 at Wall Street in New York City. | 2022-09-21T07:41:18Z | www.cnbc.com | Market got you feeling upside down? Get your portfolio ready for when stocks explode higher | https://www.cnbc.com/2022/09/20/market-got-you-feeling-upside-down-heres-how-to-focus-on-what-matters-.html | https://www.cnbc.com/2022/09/20/market-got-you-feeling-upside-down-heres-how-to-focus-on-what-matters-.html |
Fresh off the unveiling of Nvidia 's (NVDA) newest computer graphics card, CEO Jensen Huang on Tuesday tried to assuage investor concerns about the video gaming market, which has lately dogged the Club holding's stock. Huang touted Nvidia's next-generation graphics cards , which use the company's Ada Lovelace architecture with its RTX 40 technology, in an interview with CNBC's Jim Cramer. Still, Nvidia has accumulated too many computer graphics cards, Huang acknowledged, and said the semiconductor firm needed to address the issue. The company has been steadfastly trying to normalize inventory as it prepares for the new launch, necessitating price cuts on older graphic card models. While those steps have led to short-term financial pain, the CEO suggested they were appropriate given the newest gaming chips are set to hit the market imminently . "The world's gaming market continues to be vibrant, and we have absolutely no doubt that when Ada gets into the marketplace there's going to be lots of excited gamers waiting for it," Huang said. A high-end model of the new card, known as the RTX 4090, goes on sale Oct. 12. The company said two more affordable versions that contain less memory and fewer processing cores will be available in November, under the umbrella of the RTX 4080 brand. Nvidia's product launches are generally important events for the company, offering gamers an incentive to upgrade their graphics processing units to get the latest features. In the case of the RTX 40 series, it means increased efficiency and more expansive artificial intelligence-powered graphics compared with prior generations. These latest computer graphics cards are hitting the market during a financially precarious moment for Nvidia's gaming business. In early August, Nvidia preannounced its second-quarter results, with gaming revenue of $2 billion missing Wall Street's expectations by about $1 billion. Later that month, when it reported the quarter, Nvidia issued a softer-than-expected Q3 guidance, citing weakness in its gaming division due to inventory issues. Nvidia's stock price closed Aug. 5 β the session before the Q2 preannouncement β at $189.89 a share. The stock ended Tuesday down 1.5%, at $131.76 a share. These last few weeks have tested the patience of shareholders, who, like us, maintain a long-term belief in the company. The stock year-to-date has declined more than 50%. Huang suggested to Cramer that Nvidia needs to do more to win back the trust of skeptical investors, saying the company must take control of its inventory backlog. "Coming into the year, the whole market was really, really vibrant and was super high, and the supply chain was super long, so we had a lot of inventory in the pipeline," Huang said. "The actions we're taking right now to clear the inventory in the channel, to normalize inventory in the channel, is a good action. I am glad we are taking it," Huang later explained. "Of course, that resulted in Q2 and Q3 being a lot lower than we originally anticipated, but the overall gaming market remains solid," he added. Huang estimated that, in total, these corrective actions should span about two-and-a-half quarters, meaning the impact would be felt in "a little bit of Q4." Beyond that, however, the CEO predicted a more favorable outlook. "I'm excited about what's going to happen leaving this year and going into next year. I'm really excited about that," he said. (Jim Cramer's Charitable Trust is long NVDA . See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Jensen Huang, chief executive officer of Nvidia Corp. | 2022-09-21T07:41:24Z | www.cnbc.com | Nvidia CEO tries to soothe investor angst over gaming as new graphics cards are set to launch | https://www.cnbc.com/2022/09/20/nvidia-ceo-tries-to-soothe-investor-angst-over-gaming-as-new-graphics-cards-are-set-to-launch.html | https://www.cnbc.com/2022/09/20/nvidia-ceo-tries-to-soothe-investor-angst-over-gaming-as-new-graphics-cards-are-set-to-launch.html |
A brief summer rally had sparked optimism that the worst of the bear market was over, but a fourth losing week in five on Wall Street has highlighted just how volatile markets remain. Market watchers are now expecting rate hikes to be higher for longer on the back of a hotter-than-expected inflation report, while concerns have grown over the state of the economy amid a warning from FedEx about slowing global demand . Fund manager Cole Smead sees more pain ahead. He believes it is "still early" in the bear market, with further downside still to come. "We are not going to end up with a garden variety bear market. We probably got to do a pretty nasty 30% bear market or maybe even 35%," Smead, who is president and portfolio manager at Smead Capital Management, told CNBC's " Squawk Box Europe " on Thursday. 'First world problems' But Smead is not worried despite "a lot of negativity floating around." He believes investors are overreacting to the current market conditions and the world is "more ready" than ever for these "first world problems." "The reason why is that they are just different problems than we had in the past. Before, it was low growth β when are we going to get out of this? Are our rates ever going higher? Now we are freaking out about higher rates and high inflation because they are first world problems, problems we just have not had in a long time," he said. And talk of a credit crisis is "ridiculous," according to Smead. "Here's the one thing that we can't have in these markets. You can't have a credit crisis. Banks are over-capitalized. We have been hearing chatter of this idea that there could be a credit crisis in Europe and a banking crisis. That's implausible. That's so outside the numbers. That's ridiculous," he said. Household net worth in Europe and the United States has also never been higher, he noted, while debt service ratios are "on the floor." Dismissing an oft-repeated claim that consumers are facing intense pressure amid inflation and higher interest rates, Smead shared a controversial view: that it's the wealthy who are "getting crushed," not those with low or average means. "Now, who's winning in this? If you look at the lowest income quintiles in America, you'll find the highest wage gains in the country. Wealthy people have lost money this year, but the best wage gains are going to the poorest incomes out there, and I looked at myself and think, well, this is a great economy," Smead said. His comments come despite some data indicating that rising prices are well outpacing pay hikes. Last week, a survey from Bankrate.com found that more than half, 55%, of respondents said their incomes had not kept up with rising household expenses. However Smead believes that labor markets are structurally set up to ensure that that the low-income individuals get the "fastest labor gains." That's "very obvious" in other parts of the developed world too, not just in the United States, he said. | 2022-09-21T07:41:55Z | www.cnbc.com | Still early in bear market but fund manager Cole Smead is not worried | https://www.cnbc.com/2022/09/20/still-early-in-bear-market-but-fund-manager-cole-smead-is-not-worried.html | https://www.cnbc.com/2022/09/20/still-early-in-bear-market-but-fund-manager-cole-smead-is-not-worried.html |
3. The income is anything but passive
This story is part of CNBC Make It's series Six-Figure Side Hustles, featuring people of all ages and walks of life who have found ways to make more money, often in addition to their full-time jobs, and who have great advice, routines, and habits to share. Got a great story to tell? Let us know! Email us at AskMakeIt@cnbc.com. | 2022-09-21T07:42:25Z | www.cnbc.com | Swimply side hustler near Portland made $195,000 renting out his pool | https://www.cnbc.com/2022/09/20/swimply-side-hustler-made-six-figures-renting-out-his-pool.html | https://www.cnbc.com/2022/09/20/swimply-side-hustler-made-six-figures-renting-out-his-pool.html |
A Tesla Megapack in Moss Landing, California
A fire captain with North Monterey County Fire, John Hasslinger, told CNBC late Tuesday that two companies and four fire engines responded to the incident starting around 1:40 a.m.
The fire fighters used hydrants and water supply installed at the facility, and worked to prevent flames from spreading to adjoining batteries and structures in the larger system. By around 11:00 a.m. local time, fire fighters shut the water off but some were staying on location overnight to ensure that the system did not re-ignite.
"We let the initial Megapack burn out," he explained as per protocols recommended by PG&E and Tesla to the fire department. "It's too early to know what was the cause of the fire," he added, but an investigation will follow in coming weeks.
Some residents near the Elkhorn Battery substation at Moss Landing were advised to shelter in place, keeping windows and ventilation systems closed, due to emissions after the fire. That advisory was still in place late Tuesday. | 2022-09-21T07:42:32Z | www.cnbc.com | Tesla Megapack battery caught fire at PG&E substation in California | https://www.cnbc.com/2022/09/20/tesla-megapack-battery-caught-fire-at-pge-substation-in-california.html | https://www.cnbc.com/2022/09/20/tesla-megapack-battery-caught-fire-at-pge-substation-in-california.html |
The Federal Reserve's rate hikes may be wreaking havoc on investors' stock portfolios, but it's suddenly giving them lots of options offering safe and high returns. For example, the yield on the risk-free 2-year U.S. Treasury hit 3.99% on Tuesday, the highest since 2007 and a nice return compared to what equities are providing investors these days. The rates on all sorts of fixed income products are surging because of the Fed's actions, giving frazzled stock investors lots of steady alternatives now. "We are definitely in a very uncertain time and the high inflation that we're seeing is something that most investors have not dealt with for many decades," said Geetu Sharma, founder and investment manager of AlphasFuture in Minneapolis. "So, a lot of the traditional approaches to investing are being questioned." The Fed is expected to deliver a third consecutive 0.75 percentage point rate hike on Wednesday. The threat of higher rates has weighed on stocks this year - the S & P 500 is down 19% year to date - but should continue to boost these other assets. Here's where investors can find returns and relative safety in choppy markets. Short-term U.S. Treasury bonds U.S. Treasury bonds are often a hedge for stock market volatility, but longer-term ones are taking a hit as interest rates rise. Those on the shorter end of the curve, however, aren't as sensitive to interest rate hikes and may make more sense for investors looking for safety and yields, especially if they are held to maturity. "What is really working right now is to reduce duration," said Sharma. For example, the yield on the U.S. 2-year Treasury is higher than the yield on the 10-year, which briefly hit 3.604%, its highest since April 2011. That means investors buying the shorter-term bonds are getting more for their money over a smaller amount of time. Other short-term bonds have higher yields for investors now. The rate on the 3-month bill is 3.3%, while the 6-month yields about 3.9%. The 1-year bill is yielding roughly 4%. I-bonds Series I savings bonds have been a popular bet for investors this year because they're surging along with inflation and have very little risk. Bonds of this type bought through October will have a record-high annual rate of 9.62%. It's the highest annual rate I-bonds have had since the U.S. Treasury started issuing them in 1998. They are also subject to almost zero risk as the y don't lose value when held for a certain amount of time. On the flip side, there is a slight penalty if you pull money out of I-bonds early, and there are limits to how much money you can put into the bonds. Annuities Annuities that offer protection against stock market volatility and guarantee solid rates of return have skyrocketed this year. Sales surged 22% to a record $77.5 billion in the second quarter of 2022, according to preliminary data by Limra. Fixed-income annuities, which are the most popular right now, guarantee buyers a certain rate of return over a fixed timeframe. For example, the Midland National Life Oak Advantage 3-year annuity currently offers a 4.40% rate. The same product in five- and seven-year iterations have rates of 4.70% and 4.85%, respectively. Of course, investors should be careful to check for fees before buying an annuity. Sometimes such products come with high costs that eat into returns. CDs and high-yield savings accounts Certificates of deposit and high-yield savings accounts are two other alternatives for risk-averse investors who want to protect their money and enjoy modest growth. CDs will work for investors that don't mind locking up their money for the duration of the asset. Generally, a shorter timeframe is recommended to ensure you aren't keeping your funds out of higher-yielding assets for too long. Currently, top-rated six-month CDs yield between 1.8% and 2.5%, according to Bankrate. One-year CDs have rates between 2.75% and 3%. High yield savings accounts will generally have the lowest rates of return but do benefit as the Fed raises its benchmark interest rates. Currently, the top high-yield savings accounts have returns around 2.5%, according to Bankrate. They are also the lowest risk as you can access your money at any time.
Want a risk-free 4% return? How investors can buy a simple Treasury | 2022-09-21T07:42:50Z | www.cnbc.com | These low-risk assets offer returns as the Fed hikes interest rates | https://www.cnbc.com/2022/09/20/these-low-risk-assets-offer-returns-as-the-fed-hikes-interest-rates.html | https://www.cnbc.com/2022/09/20/these-low-risk-assets-offer-returns-as-the-fed-hikes-interest-rates.html |
There have been few places for investors to hide during this year's tumult, but one mutual fund is outperforming by focusing on stocks that previously fell through the cracks. The Horizon Kinetics Spin-off and Corporate Restructuring Fund , which buys stocks shortly before or after a corporate event, has created a narrow portfolio of smaller stocks that is crushing the market in 2022. The fund has gained more than 17% in 2022 even as the S & P 500 fell into a bear market. The fund has also averaged a 17% return over the past five years, despite a negative return in 2018. James Davolos, a portfolio manager at Horizon Kinetics, said that spin-offs can create mispricing of stocks due to market structure. He used an example of an industrial company spinning off its financing arm, creating a smaller stock that can be overlooked as fund managers with different themes or focuses dump it. "Now all of a sudden there is this β¦ small-cap financial services company that is no longer within your mandate. So they are probably going to sell the stock," Davolos said. Passive investing has "exacerbated tremendously" these mispricings, he said. The new companies can also be in a place for fundamental improvement now that it is a clear focus for management, according to Davolos. "In all likelihood, the core business is being run at the expense of the smaller business, meaning the profitability of the consumer finance division is not really a priority," he said. The fund has a three-star rating from Morningstar, but its heavy concentration might make many financial advisors nervous. The fund's top holdings as of June 30 show that just one stock, Texas Pacific Land Corp. , accounts for more than 60% of the fund's holdings. Its top five positions were about 80% of its holdings. *Welbilt was acquired by Ali Group in July Kinetics "rejects" the idea that diversification, in and of itself, reduces risk, Davolos said, especially for investors with long time horizons. "Diversification might reduce risk if you define risk as volatility, but if you were to think about it objectively all volatility is the variation of a stock price over a defined period of time," Davolos said. "If you don't necessarily have to buy or sell that stock, that has no influence on your ability to retire in 30 years." Kinetics does report a higher beta and standard deviation, two measures of volatility, for the fund relative to the S & P 500. Part of the reason the portfolio has become so lopsided is that Texas Pacific has outperformed so sharply, rising more than 42% this year. "In many cases, we embrace our winners," Davolos said, pointing to Berkshire Hathaway's longtime investment in Geico as an example of investment firms being willing to ride with successful holdings over many years. The firm is more than just a passive investor in Texas Pacific. Horizon Kinetics CEO Murray Stahl is on the board of the company. The fund's other top holdings include Dream Unlimited , a Canadian real estate company, and asset management firm Associated Capital Group . Worker hospitality stock Civeo Corp ., which was spun out from Oil States International in 2014 , has also been a big winner for the Kinetics fund in 2022, gaining more than 40%. However, the company still has a market cap of nearly $390 million, presenting some additional risks for investors. The fund has a low turnover rate, in many cases holding stocks for long after their spin-off event. "In some cases these companies do take many years to hit their cruising speed," Davolos said. However, it may be difficult for other investors to replicate Kinetics' success with this strategy going forward. Davolos said that there has also been a "dearth of opportunities" in recent years for new additions to the portfolio, due to high valuations for some spin-offs and other moves that jettison weaker parts of businesses. | 2022-09-21T07:42:56Z | www.cnbc.com | This spin-off focused fund is crushing the market in 2022 with an unconventional portfolio | https://www.cnbc.com/2022/09/20/this-spin-off-focused-fund-is-crushing-the-market-in-2022-with-an-unconventional-portfolio.html | https://www.cnbc.com/2022/09/20/this-spin-off-focused-fund-is-crushing-the-market-in-2022-with-an-unconventional-portfolio.html |
Dockworkers at the Port of Felixstowe had an eight-day strike in August in protest over wages. Since then, the port's owner, Hutchison Port Holdings, increased the dockworkers salaries by 7% and issued back pay. But Robert Morton, national officer for the Unite union, tells CNBC the workers are still not satisfied.
"We will strike again and again and again until our wages match inflation," said Morton. "The message we are trying to get out to employers is that we couldn't walk away during Covid. There was no respite. We are working in all kinds of weather. There has been no reward whatsoever for the efforts that our people made over these two and a half to three years. Now the inflation rate is rocketing. We need to be recognized and we need to be thanked for the efforts that we have made." | 2022-09-21T07:43:14Z | www.cnbc.com | With new port worker strikes, Ford supply chain problems aren't over | https://www.cnbc.com/2022/09/20/uk-dock-worker-strikes-hits-supply-chain-for-companies-including-ford.html | https://www.cnbc.com/2022/09/20/uk-dock-worker-strikes-hits-supply-chain-for-companies-including-ford.html |
We're buying 25 shares of Danaher (DHR) at roughly $272.79 each. Following Tuesday's trade, Jim's Charitable Trust will own 510 shares of Danaher, increasing its weighting in the portfolio to 4.96% from 4.73%. We're also buying 100 shares of TJX Companies (TJX) at roughly $63.04 each. Following Tuesday's trade, the Trust will down 950 shares of TJX, increasing its weighting in the portfolio to 2.13% from 1.91%. After patiently waiting for the market to pull back over the past few days, we are nibbling on two stocks of quality companies that we think highly of in both the short and long term. We're adding to our position in Danaher and buying back 25 shares we previously sold at higher levels. Shares have pulled back about 6.5% since we sold 65 shares in late July and nearly 9% since we sold 35 shares in mid-August at what turned out to be the near-term high. We previously bought back 35 shares at around $270 on Aug. 31. In most cases, our investing discipline would say that we need to wait for DHR to break below our most recent buy before adding again. However, we are breaking our own rules. We have two reasons why DHR looks more attractive from a long-term investment perspective Tuesday than it did three weeks ago. First, we know the business is executing at a high level right now. The company announced last week that it expects third-quarter core revenue growth to be above management's guidance range thanks to $175 million in additional Cepheid respiratory testing revenue versus prior expectations. In a market that is worried about where the next negative earnings preannouncement will come from, we can safely take DHR off this list based on this update. Secondly, and perhaps more importantly, the company is separating the last cyclical part of the business, the Environmental & Applied Solutions (EAS) segment, in a tax-free transaction expected to be completed in the fourth quarter of 2023. As we discussed in last week's "Monthly Meeting" and in our commentary that followed , we think this decision is a win for shareholders. What remains of Danaher after the EAS separation could see its price-to-earnings multiple expand from current levels because it's shedding a slower-growing, lower-margin asset. The new Danaher will be even less cyclical with a higher percentage of recurring revenues. Meanwhile, EAS is a high-quality asset in its own right; an industry leader organically growing at a mid-single-digit clip with solid margins and strong free cash flow generation. It's a great business but it didn't fit in the biomedical direction Danaher has moved towards. Due to the scarcity of industrial assets that address environmental, social and governance (ESG) concerns, we think EAS may be worth more as a standalone asset than inside Danaher. Danaher shares have fallen about 3.5%, or $10, since the company made these two announcements last Wednesday after the closing bell, compared to a roughly 2.9% decline in the S & P 500 . Danaher isn't a cheap stock on a price-to-earnings basis, making rising interest rates a headwind to valuation. But we think this recent underperformance on great news that was a true surprise creates a long-term opportunity to buy shares of a high-quality company run by a management team that's always looking for ways to create value for shareholders. As for TJX, which owns T.J. Maxx, Marshall's and HomeGoods brands, we've been waiting to add to our position in this off-price retailer below our average cost basis, and the recent selloff in the market has finally put the stock at our levels. We believe the inventory glut across retail right now has created a nirvana moment for the off-price chains. When brand name merchandise starts to pile up and stores need to make room for new fashion and season trends, they are forced to mark down the excess inventory and offload it to companies like TJX, who opportunistically pounces on the high-quality brands and sells it to customers at fire-sale prices, creating a treasure-hunt experience that shoppers love. TJX Companies is the best operator in the off-price group and has been far more consistent than peers Ross Stores (ROST) and Burlington Stores (BURL). We also like how management believes the business will return to pre-Covid pre-tax margins of 10.6% within three years, driven by better profitability from merchandise opportunities, the moderation of expense headwinds like freight, and continued focus on expense management. (Jim Cramer's Charitable Trust is long DHR and TJX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Traders work on the floor of the New York Stock Exchange on Wall Street in New York City. | 2022-09-21T07:43:21Z | www.cnbc.com | We're buying more shares of two companies, stepping off the sidelines in this down market | https://www.cnbc.com/2022/09/20/were-buying-more-shares-of-two-companies-stepping-off-the-sidelines-in-this-down-market.html | https://www.cnbc.com/2022/09/20/were-buying-more-shares-of-two-companies-stepping-off-the-sidelines-in-this-down-market.html |
Ford Motor (F) late Monday became the latest company to preannounce third-quarter results, signaling it would close out the quarter ending Sept. 30 with 40,000 to 45,000 unfinished vehicles in inventory, due to supply shortages and inflation. Shares of the Club holding company were down 12% on Tuesday, but the question now is: Do you buy the dip or are these missed sales gone for good? In terms of the financial hit, management noted that these unfinished vehicles "disproportionately include high-demand, high-margin models of popular trucks and SUVs," adding that the company expects inflation-related supply costs for the quarter to come in roughly $1 billion above expectations. In other words, an unfavorable product mix in the third-quarter is being compounded by higher-than-anticipated input costs, resulting in a one-two hit to profitability. Management anticipates third-quarter adjusted earnings before interest and taxes (EBIT) to be between $1.4 billion and $1.7 billion, well below the $2.99 billion estimate predicted by analysts. Ford is set to release its full third-quarter results on Oct. 26. Now, if you're a trader, you're selling on this news without a second thought, simply because there's no reason to believe that shares have much upside in the near term. If, however, you are a mid- to long-term investor, the most pressing concern is whether these sales will be recouped in subsequent quarters. Fortunately, management believes that the unfinished vehicles "will be completed and sold to dealers during the fourth quarter." Moreover, despite that unexpected $1 billion increase in input costs, Ford reiterated their $11.5 billion to $12.5 billion full-year operating profit forecast. Notably, the missed sales appear to be resulting in a so-called push out rather than permanently lost demand. That's crucial for the long term because it means that profits will just be recorded a bit later than anticipated β but they will be generated. We tend to see this dynamic with both high-ticket items and companies that have a loyal customer basis. Simply put, if you are a consumer ready to plop down a good chunk of money, be it $1,000 on a new iPhone or tens of thousands on a new vehicle, chances are you have done your homework, and you aren't going to allow a few months delay let you settle for the next best thing. As we noted during Tuesday's "Morning Meeting," our checks indicate that the component shortage is not semiconductor-related but rather a dearth of low tech parts. This speaks to the confidence management has in being able to realize the missed sales in the fourth quarter. The reiteration of full-year operating profit guidance, despite the $1 billion headwind, may indicate a few underlying positives. We see three possibilities. First, it could simply indicate that Ford is itself raising prices on new vehicles. If so, this could suggest enhanced profit margins down the line, as the vehicle price may very well prove stickier than the supplier prices. Second, it may speak to reduced marketing and other expenses. After all, there is no need to market for vehicles you can't sell yet. While the cost reduction would not be a structural one (i.e., more temporary in nature), it does highlight management's ability to effectively navigate the difficult and fast-changing operating environment. Third -- arguably, the most bullish view -- it could point to overall profitability at Ford improving faster than anticipated. The only way to absorb higher input costs while maintaining profit guidance on a dollar basis is to realize lower costs elsewhere β meaning that the margin on a percentage basis would have to be improving. Recall, management is targeting a consolidated adjusted operating margin of 10% -- 8% on electric vehicles -- by 2026, up from 7.3% in 2021. Ultimately, we don't believe this preannouncement to be anything more than a near-term issue. Given management's confidence that the sales will be made up by year end β not to mention the potential longer-term positives indicated by the company's ability to absorb a $1 billion input cost without revising 2022 guidance -- we believe would-be buyers should come in around the $13 level. (Jim Cramer's Charitable Trust is long F. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Ford Motor Co. signage at the Washington Auto Show in Washington, D.C., Jan. 21, 2022. | 2022-09-21T07:43:34Z | www.cnbc.com | Why Ford's warning and stock drop do not derail our long-term belief in the company | https://www.cnbc.com/2022/09/20/why-fords-warning-and-stock-drop-do-not-derail-our-long-term-belief-in-the-company.html | https://www.cnbc.com/2022/09/20/why-fords-warning-and-stock-drop-do-not-derail-our-long-term-belief-in-the-company.html |
In terms of market expectations towards the fed rate decision, we can take a look at the latest CNBC Fed Survey. This survey reflects three key points: first, hike and hold. The federal funds rate will rise to a high level and last for a certain period of time. Second, the U.S. stock market will be under pressure. Third, stall speed. Economic growth may stagnate.
So first, let's focus on the expectations for the Fed's rate hike path: the respondents generally believe the Fed will raise rates by 75 basis points at Wednesday's meeting. And the central bank is forecast to keep hiking until the rate peaks in March 2023 at 4.26%. In addition, the survey predicts the Fed will remain at this peak rate for nearly 11 months. This forecast comes amid expectations for persistently high inflation. Let's look at the inflation outlook chart.
Respondents forecast the consumer price index will end the year at a 6.8% year-over-year rate, down from the current level of 8.3%, and fall further to 3.6% in 2023. However, the Fed stresses that its inflation target is 2%. Then according to the survey, it will not fall to this level until 2024.
One thing we should note here is the credibility of the Fed. The market is very disappointed with the Fed's previous misjudgment of inflation and the subsequent pace of rate hikes that were too small and too slow to control inflation. Investors hope that the Fed will be able to re-establish its credit in future rate decisions and communicate with the market more smoothly.
Victoria Greene
Founding Partner and Chief Investment Officer, G Squared Financial, USA
"The biggest risk to the Fed is when there's a dislocation between expectations and what their paths are. So I feel like he's going out of his way to convince people that they're in it to win it. "
With the Fed expected to increase rates sharply, the market is naturally not optimistic regarding the outlook for the stock market and the U.S. economy. For the stock market, Morgan Stanley's chief U.S. equity strategy analysts believe that corporate earnings will be hit by interest rate hikes and economic slowdown and the stock market lows of June this year will be easily broken. The S&P 500 will also continue to decline.
Chief Investment Officer for Morgan Stanley
"Once we get into October, November, it becomes all about earnings, which we're pretty bearish on. re talking low 3000s probably sometime in the fourth quarter is our best guess.
October and November are earnings season, and we're very pessimistic about the next corporate earnings reports. Our expectations for the S&P 500 are quite low, something like 3,000s over. This is our 4th quarter market forecast."
As for the economic outlook, the survey shows that the U.S. economy is seen running at stall speed this year, and things won't get much better for 2023. There is a 52% probability that the U.S. economy will experience a recession next year, with the average GDP forecast at just 1.1%.
It is worth noting that the Fed's interest rate decision affects not only the U.S. economy, but also has significant implications for the rest of the world. Most notably, the recent strengthening of the dollar has left many countries facing currency depreciation and imported inflation. We will keep an eye on the Fed's decision tomorrow and how it communicates to the market the path of future interest rate hikes. | 2022-09-21T07:43:46Z | www.cnbc.com | CCTV Script 21/09/22 | https://www.cnbc.com/2022/09/21/cctv-script-21/09/2022.html | https://www.cnbc.com/2022/09/21/cctv-script-21/09/2022.html |
The civil lawsuit filed in Manhattan Supreme Court seeks at least $250 million in damages, and seeks to bar Trump, Donald Trump Jr., Eric Trump, and Ivanka Trump from serving as an officer of a company in New York.
James also said that she was referring evidence obtained in the course of a three-year investigation to federal prosecutors in Manhattan, as well as to the Internal Revenue Service, saying she believed it showed violations of federal criminal laws.
"Trump falsely inflated his net worth by billions of dollars," James said at a press conference. She also noted that he had falsely claimed that his apartment in Manhattan was more than triple its actual size as part of the fraud.
James said Trump grossly overstated the values of his assets to obtain more favorable loan and insurance terms for his company, as well as to lower its tax obligations.
"The number of grossly inflated asset values is staggering, affecting most if not all of the real estate holdings in any given year. All told, Mr. Trump, the Trump Organization, and the other Defendants, as part of a repeated pattern and common scheme, derived more than 200 false and misleading valuations of assets included in the 11 Statements covering 2011 through 2021."
Trump's lawyer Alina Habba, in a statement, said, "Today's filing is neither focused on the facts nor the law β rather, it is solely focused on advancing the Attorney General's political agenda." | 2022-09-21T15:57:42Z | www.cnbc.com | New York sues Donald Trump, Trump Organization for fraud | https://www.cnbc.com/2022/09/21/new-york-sues-donald-trump-company-and-family-members-over-widespread-fraud-claims-seeks-at-least-250-million-in-penalties.html | https://www.cnbc.com/2022/09/21/new-york-sues-donald-trump-company-and-family-members-over-widespread-fraud-claims-seeks-at-least-250-million-in-penalties.html |
2-year Treasury yield tops 4% for the first time since 2007
US10Y
The yield on the 2-year Treasury note topped 4% for the first time since 2007 on Wednesday as traders bet the Federal Reserve has much further to go in raising rates to fight inflation.
The policy-sensitive 2-year Treasury rose 4 basis points to 4.006%, to a level not seen since October 2007. Meanwhile, the yield on the benchmark 10-year Treasury was last at 3.561%, down by roughly 1 basis points, after notching an 11-year high this week. The significant inversion, with short-term rates higher than long-term rates, points to the risk of a recession, some investors believe.
Yields and prices move in opposite directions, and 1 basis point is equivalent to 0.01%.
The Fed is expected to raise rates by 75 basis points, or 0.75 percentage point, as its September meeting comes to a close. But even that may not be enough, Michael Schumacher, head of macro strategy at Wells Fargo Securities, told CNBC's "Fast Money," explaining that while he is expecting a 75 basis point hike, he would argue for a 150 basis point hike as he believes rates are headed higher still.
Treasurys could also be a source of safety for investors, he added.
"Relative safety I would look at the front-end of the U.S. Treasury curve. You've got the 2-year treasury yielding just about 4%. It's gone up enormously," he said. "If you think about the real yield, which a lot of people in the bond market focus on, it's probably not a bad place to hide out."
The 2-year rate started 2022 trading at around 0.73%. Wednesday's move puts it 328 basis points (3.28 percentage points) above that level. | 2022-09-21T15:57:48Z | www.cnbc.com | 2-year Treasury yield tops 4% for the first time since 2007 | https://www.cnbc.com/2022/09/21/treasury-yields-fall-ahead-of-federal-reserve-interest-rate-decision.html | https://www.cnbc.com/2022/09/21/treasury-yields-fall-ahead-of-federal-reserve-interest-rate-decision.html |
Patagonia's recent announcement that its founder, Yvon Chouinard, and his family are giving away their ownership in the outdoor apparel maker to benefit climate change does not mean the company will become any less competitive.
Gellert said the decision to donate the company's profits toward fighting climate change was not ever a decision the founders made to avoid paying taxes.
A Patagonia store signage is seen on Greene Street on September 14, 2022 in New York City. Yvon Chouinard, founder of Patagonia, his spouse and two adult children announced that they will be giving away the ownership of their company which is worth about $3 billion. The company's privately held stock will be now be owned by a climate-focused trust and group of nonprofit organizations, called the Patagonia Purpose Trust and the Holdfast Collective, and all the profits that are not reinvested into the business will be used to fight climate change.
Patagonia CEO Ryan Gellert breaks down the founder's decision to give away the company | 2022-09-21T19:00:41Z | www.cnbc.com | Patagonia must remain competitive for climate donation to work: CEO | https://www.cnbc.com/2022/09/21/patagonia-must-remain-competitive-for-climate-change-donation-ceo.html | https://www.cnbc.com/2022/09/21/patagonia-must-remain-competitive-for-climate-change-donation-ceo.html |
U.S. President Joe Biden met with South Korean President Yoon Suk-yeol in May 2022 on a visit to the Samsung Electronics Pyeongtaek campus. The U.S. and South Korea, along with other countries, are seeking to form alliances around semiconductors, with the aim of cutting out China.
Over the long term, I do think they [China] will be able to overcome some of the current challenges... yet they won't be able to reach the cutting edge that many other countries are.
Takshashila Institution
It'll take a long time for the U.S. to rival Asia in chip production: Strategist | 2022-09-22T02:37:26Z | www.cnbc.com | Semiconductor alliances between U.S. and Asia could hold back China | https://www.cnbc.com/2022/09/22/semiconductor-alliances-between-us-and-asia-could-hold-back-china.html | https://www.cnbc.com/2022/09/22/semiconductor-alliances-between-us-and-asia-could-hold-back-china.html |
Swiss National Bank (SNB), the central bank of Switzerland.
Japan is now the last major economy with a central bank in negative territory, after the Bank of Japan decided to keep its interest rates on hold at -0.1% on Thursday.
A recession is coming but it's likely to be mild, analyst says | 2022-09-22T08:43:11Z | www.cnbc.com | Swiss central bank hikes interest rate as inflation pressures hit hard | https://www.cnbc.com/2022/09/22/swiss-central-bank-hikes-interest-rate-as-inflation-pressures-hit-hard.html | https://www.cnbc.com/2022/09/22/swiss-central-bank-hikes-interest-rate-as-inflation-pressures-hit-hard.html |
The Bank of England warned that the U.K. will enter recession later this year. The expected recession is forecast to be the longest since the global financial crisis.
The Bank of England voted to raise its base rate to 2.25% from 1.75% Thursday, lower than the 0.75 percentage point increase that had been expected by many traders.
Inflation in the U.K. dipped slightly in August but at 9.9% year-on-year remained well above the bank's 2% aim. Energy and food have seen the biggest price rises, but core inflation, which strips out those components, is still at 6.3% on an annual basis.
Numerous analysts, along with business association the British Chambers of Commerce and the BOE itself, have said they expect the U.K. to enter a recession before the end of the year. As well as energy price shocks, it faces trade bottlenecks due to Covid-19 and Brexit, declining consumer sentiment and falling retail sales.
Meanwhile, the country's newly-formed government has set out numerous significant economic policy proposals this month ahead of a "fiscal event," dubbed a mini budget, when they will be officially announced on Friday. | 2022-09-22T11:45:38Z | www.cnbc.com | Bank of England raises rates by 50 basis points, in seventh consecutive hike | https://www.cnbc.com/2022/09/22/bank-of-england-raises-rates-by-50-basis-points-in-seventh-consecutive-hike.html | https://www.cnbc.com/2022/09/22/bank-of-england-raises-rates-by-50-basis-points-in-seventh-consecutive-hike.html |
A person walks by a FedEx van in New York City, May 9, 2022.
"We're moving with speed and agility to navigate a difficult operating environment, pulling cost, commercial, and capacity levers to adjust to the impacts of reduced demand," said Raj Subramaniam, FedEx Corp. president and chief executive officer. | 2022-09-22T19:22:45Z | www.cnbc.com | FedEx (FDX) reports Q1 earnings | https://www.cnbc.com/2022/09/22/fedex-fdx-reports-q1-earnings.html | https://www.cnbc.com/2022/09/22/fedex-fdx-reports-q1-earnings.html |
Alex Karp, CEO of Palantir arrives ahead of a "Tech For Good" meetup at Hotel Marigny in Paris on May 15, 2019, held to discuss good conduct for technology giants.
"Bad times are incredibly good for Palantir ... bad times really uncover the durable companies, and tech is going through bad times ... interest rates are the reason," Karp said Thursday on CNBC's "Squawk Box." "Will this deadly tidal wave wipe out some companies? Yes it will."
The Federal Reserve on Wednesday raised benchmark interest rates by another three-quarters of a percentage point to a range of 3%-3.25%, the highest since early 2008. The Bank of England, the Swiss National Bank, and the central banks of Norway, the Philippines, South Africa, Taiwan, Vietnam and Indonesia followed suit, hiking rates to control inflation that has spiraled over the last year.
"People are scared s---less about energy outside of America," Karp said. "They are so scared about the macro-political conditions that no one wants to talk about them. Their enterprises are built for a static and unified world of peace. The balance sheets obviously are often not prepared for what's going to happen, which I think is going to be pretty bad in the next couple of years politically and economically." | 2022-09-22T19:22:51Z | www.cnbc.com | Palantir CEO Alex Karp says tidal wave of macroeconomic risks will wipe out some companies | https://www.cnbc.com/2022/09/22/palantir-ceo-alex-karp-says-tidal-wave-of-macroeconomic-risks-will-wipe-out-some-companies.html | https://www.cnbc.com/2022/09/22/palantir-ceo-alex-karp-says-tidal-wave-of-macroeconomic-risks-will-wipe-out-some-companies.html |
Trip.com said that in the latest quarter, same-city hotel reservations in China grew by 30% compared with 2019 levels. Pictured here is a view from the luxury J Hotel in Shanghai on June 23, 2021.
Qazi: There isn't a real case to be made for China's zero COVID policy to be scrapped altogether | 2022-09-22T23:56:48Z | www.cnbc.com | Trip.com says China hotel bookings are surpassing pre-pandemic levels | https://www.cnbc.com/2022/09/22/tripcom-says-china-hotel-bookings-are-surpassing-pre-pandemic-levels.html | https://www.cnbc.com/2022/09/22/tripcom-says-china-hotel-bookings-are-surpassing-pre-pandemic-levels.html |
Moreover, 71% of employees said money-related stress has negatively affected their work and personal lives, a 7% increase from 2021. At the same time, 84% of human resources leaders said they're worried personal financial issues are affecting employees' productivity.
How to know if we are in a recession
The fact that employees have reduced their 401(k) contributions year over year is concerning, McDonald said, because they'll miss out on taking full advantage of their work retirement plans and the compounding interest that can help them build wealth over time.
Start by maxing out the most that you can do β not the most that's allowed, but the most you can do β in your 401(k) plan.
Brian McDonald
head of Morgan Stanley at Work
"The conversation is more around financial well-being, and that trend is certainly gaining momentum," he said.
Moreover, 84% of human resources leaders say employees have requested financial benefits their companies do not offer, up from 78% in 2021.
Yet 96% of HR leaders said their companies need to do more to help employees better understand how to maximize the financial benefits available to them, up from 93% who said that last year.
However, HR leaders cited different priorities, with goals-based retirement investment planning coming in first, with 47%; followed by access to retirement planning tools and calculators, with 43%; retirement planning workshops, 40%; and access to a financial advisor, 40%. | 2022-09-23T02:42:33Z | www.cnbc.com | 62% of employees cut back on savings amid concerns about the economy | https://www.cnbc.com/2022/09/21/62percent-of-employees-cut-back-on-savings-amid-concerns-about-the-economy.html | https://www.cnbc.com/2022/09/21/62percent-of-employees-cut-back-on-savings-amid-concerns-about-the-economy.html |
Warren Buffett's Berkshire Hathaway got upgraded at Edward Jones as the conglomerate's recent sell-off made the conglomerate's shares attractive. Edward Jones analyst James Shanahan boosted Berkshire's rating to buy from hold Wednesday, while adding the stock to the Wall Street firm's "U.S. Stock Focus List." The move followed a 6% decline over the past month amid concerns about rate hikes and the economy. The Class A stock has pulled back 22% from its all-time high reached in March. "We believe that the sell-off has created an attractive entry point for long-term investors, as Berkshire revenues and earnings benefit from a diverse group of operating companies and investments," Shanahan said. The conglomerate's operating business is a patchwork of companies spanning from railroads, to batteries, insurance, home furnishing and retail. Berkshire also manages an equity portfolio worth well above $300 billion. Berkshire's operating profits jumped 38% year over year in the second quarter despite fears of slowing growth. The "Oracle of Omaha" has been ramping up his energy exposure this year with increased bets on Chevron and Occidental Petroleum . "We believe that higher interest rates, additional investment activity, and an acceleration in share-repurchase activity will provide additional support for earnings per share," Shanahan said. | 2022-09-23T02:43:10Z | www.cnbc.com | Berkshire Hathaway gets an upgrade as recent sell-off creates an attractive entry point | https://www.cnbc.com/2022/09/21/berkshire-hathaway-gets-an-upgrade-as-recent-sell-off-creates-an-attractive-entry-point.html | https://www.cnbc.com/2022/09/21/berkshire-hathaway-gets-an-upgrade-as-recent-sell-off-creates-an-attractive-entry-point.html |
BlackRock's Rick Rieder expects the Fed to hike rates by three-quarters of a point Wednesday and says the Fed does not need to raise them by the full percentage point that some expect. The Fed is widely expected to announce the 75 basis point increase to the fed funds rate. The futures market Tuesday was pricing 16% odds that the Fed could even announce a 100 basis point hike Wednesday afternoon. "I don't agree with the assessment that the Fed needs to panic," he said. "Seventy five basis points is historically massive." A basis point equals 0.01 of a percentage point. Rieder, chief investment officer of global fixed income, said there is already improvement in the momentum of inflation though it is proving to be "frustratingly sticky." That improvement is showing up in freight costs and commodity prices. The labor market is also showing some signs that momentum is downshifting. After the 75 basis point hike Wednesday afternoon, "I think the odds of them going 75 one more time are probably 50/50 at this point," he said. After that, the Fed may not have much further to go. "You've probably got to go a bit more and then see where you are in another month or two months," he said. "You're getting to the point where you're well into restrictive territory, and you should let the long and variable lag to monetary policy work for you." | 2022-09-23T02:43:22Z | www.cnbc.com | BlackRock's Rieder says Fed should not panic because rate effect lags | https://www.cnbc.com/2022/09/21/blackrocks-rieder-says-fed-should-not-panic-because-rate-effect-lags.html | https://www.cnbc.com/2022/09/21/blackrocks-rieder-says-fed-should-not-panic-because-rate-effect-lags.html |
Today's announcement will not affect the partnership with Boeing, a spokesperson told CNBC.
"Kitty Hawk's decision to cease operations does not change Boeing's commitment to Wisk. We are proud to be a founding member of Wisk Aero and are excited to see the work they are doing to drive innovation and sustainability through the future of electric air travel. We do not expect Kitty Hawk's announcement to affect Wisk's operations or other activities in any way."
Here is a first look at Kitty Hawk's 'flying car' | 2022-09-23T02:44:35Z | www.cnbc.com | Google co-founder's flying car startup is winding down | https://www.cnbc.com/2022/09/21/google-co-founders-flying-car-start-up-is-winding-down.html | https://www.cnbc.com/2022/09/21/google-co-founders-flying-car-start-up-is-winding-down.html |
Visa, Mastercard and American Express are facing calls from Republican attorneys general not to move forward with plans to adopt a new code for gun retailers.
Visa, Mastercard and American Express have said the new code won't inhibit legal commerce.
Fire arms are seen at the BobΓ’s Little Sport Gun Shop in the town of Glassboro, New Jersey, United States on May 26, 2022.
In a letter sent to the companies Tuesday, the attorneys general warn the credit card companies that they could face legal action if they move forward with the code adopted by the International Organization for Standardization.
"Be advised that we will marshal the full scope of our lawful authority to protect our citizens and consumers from unlawful attempts to undermine their constitutional rights," says the letter, which was first reported by The Wall Street Journal.
Visa, MasterCard and American Express did not immediately respond to requests for comment.
The letters come after the credit card companies announced plans to start applying the new sales code to transactions made at gun stores. Gun law advocates have said such a code is a critical first step toward giving banks and credit card companies the tools they need to recognize dangerous firearm purchasing trends β such as a domestic extremist building up an arsenal β and report them to law enforcement.
A merchant category code indicates the types of services or goods sold to consumers. Previously, gun store sales were categorized as "general merchandise." | 2022-09-23T02:44:41Z | www.cnbc.com | GOP attorneys general ask credit card companies to drop gun store code | https://www.cnbc.com/2022/09/21/gop-attorneys-general-ask-credit-card-companies-to-drop-gun-store-code-.html | https://www.cnbc.com/2022/09/21/gop-attorneys-general-ask-credit-card-companies-to-drop-gun-store-code-.html |
Marvell CEO tells Jim Cramer: We're doing much better than our stock price suggests
Marvell Technology (MRVL) CEO Matt Murphy on Wednesday painted an optimistic long-term picture for the semiconductor company, suggesting that Wall Street has recently misjudged both the Club holding's present performance and future prospects. "The long-term opportunity for this company ... is tremendous because if you think about the end markets that we participate in β forget about share gain, forget about new product cycle. Just look at the end markets," Murphy told Jim Cramer in an interview. "The markets that Marvell is targeting are growing significantly faster than almost any other set of end markets you could focus on, and we don't have the consumer, drag which is problematic in an environment like today," the chief executive said, noting only about 10% of Marvell's revenue falls into consumer categories like printers and personal computers. That's where much of the chip industry's weakness has been concentrated this year. By contrast, Murphy said the company's most important underlying markets β like data center, 5G and automotive β have been resilient, even as Marvell shares have tumbled around 45% year to date. Higher interest rates and economic slowdown concerns have weighed on stocks across the chip industry. "The end markets, they have a big determination on a company's performance, especially in a cycle like this," he added. Data center Marvell's data center revenue grew 48% year over year to $643.4 million in the second quarter but missed estimates. The segment represented 42% of the firm's overall sales in the three months ended July 30. While Marvell's on-premise data division is seeing some softness, its cloud-focused unit is holding up better. That's important because cloud is the star of the show. It is where the secular tailwinds are blowing. Murphy on Wednesday expressed confidence about the fundamental direction of the company's business large-scale cloud customers. Here's what he told Cramer: "What we have that is unique to us is our own unique product cycles. We've won actually meaningful new business in cloud-optimized custom silicon; high-performance networking chips like switches; all the optical interconnect from Inphi, the acquisition that we [closed in 2021]; plus, storage, security. I mean, I could go on and on," Murphy said. "We've got like 12 product lines that sell into the cloud, and all these new ramps are coming. They're still in front of us, starting next year, and then a big increase the year after. That's the long-term view of this." Automotive Automotive/industrial is the smallest of the five end markets for which Marvell reports results. While jumping 46%, it contributed a less-than-expected $83.6 million to second-quarter revenue, making it just 6% of overall sales. Nevertheless, Murphy told Cramer the company sees ample opportunity to expand that business as the automotive industry gets more technologically advanced. Its current performance is "phenomenal," he said. The CEO offered a detailed look at that opportunity and an explanation of how Marvell's auto business differs from Club holdings Nvidia (NVDA) and Qualcomm (QCOM), which is set to hold its automotive investor day on Thursday. "If you look at Qualcomm or Nvidia or some of the others, they're doing the brains of the car. Think of Marvell as the nervous system. We're the connectivity inside the car, the network. We work with those big computing companies that are doing self-driving chips and infotainment, things like that. We actually provide all of the connectivity inside the car, which is moving to Ethernet," Murphy said. While Ethernet networks are hardly a new technology, their presence inside cars is a relatively new development that bodes well for Marvell. The company deploys Ethernet switches in data centers, the telecommunications industry and corporate networks. Currently, a "very small" percentage of cars contain Ethernet networks, according to Murphy. "Every car company is moving to as the de facto, standard for the in-car network of the future. You have to because you need the speed, you need the reliability, you need the security," he said. "On an Ethernet network, you can effectively do what's called multidrop. You can have all these different components inside the car on a common network, versus today. There's literally hundreds of pounds of cabling connecting all these different [electronic control units] inside the vehicles. We actually made it possible to strip away the cable cost and make the network much more efficient and quick and reliable. ... It's all in front of us." (Jim Cramer's Charitable Trust is long MRVL, NVDA and QCOM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Matt Murphy, president and CEO of Marvell Technology | 2022-09-23T02:45:35Z | www.cnbc.com | Marvell CEO tells Jim Cramer: We're doing much better than our stock price suggests | https://www.cnbc.com/2022/09/21/marvell-ceo-tells-jim-cramer-were-doing-much-better-than-our-stock-price-suggests.html | https://www.cnbc.com/2022/09/21/marvell-ceo-tells-jim-cramer-were-doing-much-better-than-our-stock-price-suggests.html |
Freyr could see its stock double β if not jump four times from where it is now β as the electric vehicle battery maker builds out its client base and production facilities and benefits from recent legislation being passed, according to Morgan Stanley. Analyst Adam Jonas named Freyr a top pick and hiked his price target on the stock to $26 per share, about double where the stock closed Tuesday. Jonas also said his bull case scenario has the stock going to $60, more than 350% above the previous close. "The environment is becoming ripe for FREY to become a real player in the global battery economy later this decade," Jonas said. He also said that Freyr is one of the few publicly traded energy storage system, or ESS, companies to benefit from the Inflation Reduction Act's passage, because of its focus on clean energy funding. ESS batteries are considered an essential part of electric vehicles, which have been in high demand in recent years as corporations and consumers weigh their environmental and cost impacts against gas-powered cars. Since the start of 2022, Freyr signed agreements with Powin, Honeywell and Nidec β whose partnership represents one of the largest ESS battery contracts in the world. The company aims to have plants expanded and producing on a fully automated process within the next few years. These moves raised Morgan Stanley's revenue estimates for the company, bringing the 2025 estimate up $400 million to $1.1 billion and 2030 up $3 billion to $8.3 billion. For the bull case $60 target to be met, the company will have to hit a supply of 300 GWh, a unit of battery measurement, by 2035. The company will also have a compound annual growth rate of 35% in revenue; 25% margin on exit earnings before interest, taxes, depreciation and amortization. The target also implies a share of about 5% in the auto industry by 2035. The base case, meanwhile, assumes 182 GWh by 2035. Shares were up 12% on Wednesday. β CNBC's Michael Bloom contributed to this report. | 2022-09-23T02:45:47Z | www.cnbc.com | Morgan Stanley says this EV battery maker can rally as much as 350% | https://www.cnbc.com/2022/09/21/morgan-stanley-says-this-ev-battery-maker-can-rally-as-much-as-350percent.html | https://www.cnbc.com/2022/09/21/morgan-stanley-says-this-ev-battery-maker-can-rally-as-much-as-350percent.html |
Short-term Treasury yields are spiking to new highs, making the risk-free notes even more attractive for investors seeking safety and income at a time when market returns are scarce. The yield on the 2-year Treasury popped to 4.1% on Wednesday, the highest level for the note since 2007 . Bond yields move inversely to their prices. The move came after the Federal Reserve raised rates by 0.75 percentage point in an effort to tame inflation and indicated more hikes were on the horizon. In August, the consumer price index rose 0.1% . Economists surveyed by Dow Jones expected a decline of 0.1%. The 2-year note is at the point on the Treasury yield curve that is most sensitive to rate hikes by the Federal Reserve . With the yield curve inverted, short-term notes now have higher yields than longer-term ones. These short-term bonds are also now more compelling considering stocks' lackluster performance this year. The S & P 500 is down nearly 19% in 2022. Bond king Jeffrey Gundlach, CEO of DoubleLine Capital, said in a recent webcast that after several brutal years, the fixed income market is now the place to be . "The opportunities are more exciting now than any time, in my view, in the past 10 years," he said. Gundlach's firm recently purchased long-term Treasurys. CNBC's Jim Cramer, on the other hand, bought 2-year Treasury notes for his personal portfolio. For the first time in a long time, the yields are more competitive with stock returns, he said. With short-term notes, investors can get the high yield without a long-term commitment. For those looking to get a piece of the action, here's what you need to know. A direct purchase from the government You can buy Treasurys directly from the U.S. government through its website, TreasuryDirect.gov . You'll need to set up an account and link your bank to the website. The notes are sold in $100 increments and are generally issued within one week of the auction date. Auctions for the 2-, 3-, 5- and 7-year Treasurys occur every 4 weeks, while the 10-year auction occurs quarterly. Purchasing the notes makes income planning easy. "If you buy an individual Treasury and hold it to maturity, you know what your interest is going to be and you know what your maturity value is," said chartered financial analyst Tim Utecht, chief investment officer at Life Planning Partners, based in Jacksonville, Florida. "You know exactly what you're going to get." You'll get paid interest twice a year. If you hold the Treasury until it matures, you aren't affected by market risk. The downside of owning the security instead of investing in a Treasury fund is the lack of diversification, unless you are laddering bonds yourself. You'll also have to make sure you buy the right Treasurys based on your objectives and time horizon. The investments are also separate from your other accounts, said certified financial planner Diahann Lassus, managing principal at Peapack Private Wealth Management in New Providence, New Jersey. "For people who want to see everything together, it is a little more difficult," she said. You also can't buy them in your IRA or Roth IRA, which Lassus thinks is the biggest downside. If you want to sell the bond before it reaches maturity, you can't do it on the government website. Instead, you'll have to transfer it to a bank, broker or dealer. Buying Treasurys from a brokerage You can also purchase Treasury notes on the secondary market, going through a brokerage firm. You'll still get all the advantages of owning the security directly. For Utech, this is the easiest way to buy the bonds, calling the government website "a bit cumbersome." Online brokers like Fidelity and Charles Schwab have tables that list the yields on various Treasurys, so you can compare products, he said. In addition to offering secondary-market bonds, both Fidelity and Schwab sell new issue Treasurys. Also be aware that you may not get the exact time horizon on the note on any secondary Treasury purchases, Utech said. Be sure to check on any minimum purchase requirements and fees involved. At Schwab and Fidelity, for instance, it's free to buy Treasurys online, but a broker-assisted trade is $25 and $19.95, respectively. At Fidelity, the minimum purchase is $1,000 for Treasury notes. What Lassus likes about going through a brokerage is the fact that you have the ability to have your investments all together and you can even add them to an IRA or Roth IRA, she said. Exposure through a bond fund You can also get exposure to the bond market through mutual funds and exchange-traded funds. "It provides immediate diversification," Lassus said. For instance, a short-term Treasury bond fund could have issues with maturities ranging between one and three years. You can buy them through your brokerage, which might also make it easier to track performance alongside the rest of your holdings. See below for four short-term Treasury funds. However, funds can suffer price dislocation in a year like this one and you have the prospect of losses. Also, income payments can fluctuate since you have different bonds in the fund. Be aware of any fees involved, which could take a bite out of your returns. Funds also have turnover and therefore are subject to capital gains tax, unlike individual bonds. | 2022-09-23T02:47:07Z | www.cnbc.com | The yield on a 2-year Treasury just topped 4.1%. How investors can grab some risk-free return | https://www.cnbc.com/2022/09/21/the-yield-on-a-2-year-treasury-just-topped-4percent-how-investors-can-grab-some-risk-free-return.html | https://www.cnbc.com/2022/09/21/the-yield-on-a-2-year-treasury-just-topped-4percent-how-investors-can-grab-some-risk-free-return.html |
The tumultuous market has provided an opportunity to grab some of analysts' favorite stocks on the cheap. After the two-month Covid bear market in 2020, stocks rallied back to new highs before entering another bear market earlier this year. After hitting lows in June, the market has swung back and forth in volatile trading. The result: Almost half of large-cap stocks have given up all the gains they made during the rally after the Covid bear market β and are now below their closing price on Feb. 19, 2020, according to Bespoke Investment Group. With that in mind, CNBC Pro looked for stocks that are in the red since Feb. 19, 2020, and have a current forward price-to-earnings ratio 10% lower than their average forward P/E of the last five years. They are also names that are loved by analysts: They have at least 10% upside to the average price target and at least 60% of analysts rate them a buy. Visa and Mastercard both made the list, trading at about a 22% discount. Visa is down 10% since the market's February 2020 peak, and Mastercard dropped 9%. More than 70% of the analysts covering each name rate them a buy and the stocks have more than 35% upside to their average price targets, according to FactSet. Hedge funds also like Visa and have been quietly adding positions , according to data firm InsiderScore. For instance, Soroban Capital Partners raised its stake in the payments company by 75% in the second quarter. Meta , down nearly 33% from the market's pre-Covid peak, is currently trading at a 39% discount and has 48% upside to the average analyst price target, according to FactSet. In July, the social media company formerly known as Facebook reported a steeper-than-expected drop in revenue in the second quarter, missed on earnings and said it was expecting a second straight period of declining sales. Of the analysts who cover the stock, 60% give it a buy rating. Meanwhile, Disney is rated a buy by 72% of the analysts covering it. In a note earlier this month, Morgan Stanley analyst Benjamin Swinburne said he sees the entertainment giant's park segment driving the majority of free cash flow and earnings before interest, taxes, depreciation and amortization. Also, he expects Disney's content assets are "under-earning and undervalued." Disney is trading at a 30% discount and is down nearly 24% since February 2020. In the industrials sector, Boeing stands out with its nearly 57% forward P/E discount. The aerospace company has also plunged 57% since February 2020. Roughly 67% of analysts who cover the stock rate it a buy. Morgan Stanley's Kristine Liwag is one of those bullish on Boeing and recently reiterated her overweight rating in a Sept. 8 note. "The main takeaway from our analysis is that there is solid demand for aircraft. The strength in demand in narrow body aircraft is already reflected in our 737 MAX estimates," she wrote. | 2022-09-23T02:47:15Z | www.cnbc.com | These stocks have fallen back below their pre-Covid levels and are cheap | https://www.cnbc.com/2022/09/21/these-stocks-have-fallen-back-below-their-pre-covid-levels-and-are-cheap.html | https://www.cnbc.com/2022/09/21/these-stocks-have-fallen-back-below-their-pre-covid-levels-and-are-cheap.html |
Brazilian jiu-jitsu is a popular style of martial art that is considered a form of "physical chess." In a recent appearance on Joe Rogan's podcast, Facebook co-founder Mark Zuckerberg said "it really is the best sport."
It is also practiced by A-listers such as Ashton Kutcher, Demi Lovato, and Electronic Arts CEO Andrew Wilson. | 2022-09-23T02:47:28Z | www.cnbc.com | Tom Hardy just won gold at a Brazilian Jiu-Jitsu competition | https://www.cnbc.com/2022/09/21/tom-hardy-just-won-gold-at-a-brazilian-jiu-jitsu-competition.html | https://www.cnbc.com/2022/09/21/tom-hardy-just-won-gold-at-a-brazilian-jiu-jitsu-competition.html |
Three-quarters or one full percentage point from the Fed? That's the big question on the minds of traders Wednesday. Chris Senyek at Wolfe Research represents the consensus: "Our sense is that markets could be set up for a short-lived relief rally if the Fed hikes by +75bps (75 basis points/three-quarters of a point) and Powell doesn't ratchet up his hawkish rhetoric even further," he said in a note to clients Wednesday morning. We could use a relief rally. The S & P 500 is about 70 points below where it was at the close of the last Federal Reserve meeting on July 27. The last several Fed meetings have seen the S & P close up on the announcement day, but there's no pattern after that. On July 27, the rally continued for three days. After the June 15 meeting, the market dropped and bottomed to a new low for the year (3,666). After the May 4 meeting, the S & P dropped three days in a row, and after the March 16 meeting, a rally continued for several days. There's no pattern. The problem is easy to identify. There are signs inflation may be peaking, but not enough signs it is declining as fast as the Fed wants. Until we know how long higher inflation will persist, we don't know the Fed's terminal rate or rate where they will stop hiking. And that is leading to a wide diversity of opinions. The expectations are slowly creeping higher. Most still are hopeful the terminal Fed funds rate will be in the 4.25%-4.50% range, but Senyek is one of several who think the Fed is going to have to go much further: "The committee will most likely have to raise fed funds to 5%+ in order to put inflation on a sustainable path back toward its 2% long-term target." Bond ETFs hit new lows The entire investible bond ETF world is at new lows. The two largest bond ETFs in the U.S., Vanguard Total Bond Market (BND) , and iShares Aggregate Bond (AGG) , closed Tuesday at the lowest levels since 2008. Corporate bond funds are also at new lows, including the Vanguard Short-Term Corporate Bond ETF (VCSH) and the iShares Investment Grade Corporate Bond ETF (LQD) . They hit the lowest level since 2020, but if the 2020 low is removed they are at the lowest level since 2010. Remarkably, there have not been outflows from these funds, likely because they have strong institutional support and broad bond funds like these tend to be "sticky." | 2022-09-23T02:48:41Z | www.cnbc.com | What traders are thinking about before the big Fed decision Wednesday afternoon | https://www.cnbc.com/2022/09/21/what-traders-are-thinking-about-before-the-big-fed-decision-wednesday-afternoon.html | https://www.cnbc.com/2022/09/21/what-traders-are-thinking-about-before-the-big-fed-decision-wednesday-afternoon.html |
Apple unveiled four new iPhones, three new Apple Watches and an updated AirPods Pro during a press event on Wednesday in Cupertino, California, United States on September 7, 2022.
Of particular note, iOS 16.0.2 fixes a camera vibration issue inside third-party apps like Snapchat and TikTok, in which the camera would make an audible noise when trying to focus. It also fixes a problem with transferring data from an old iPhone to an iPhone 14. In such transfers, the display on the new device would sometimes appear completely black, requiring a hard reset. | 2022-09-23T02:49:50Z | www.cnbc.com | Apple issues iOS 16.0.2 update to fix camera, hard reset bugs | https://www.cnbc.com/2022/09/22/apple-issues-ios-16point0point2-update-to-fix-camera-hard-reset-bugs.html | https://www.cnbc.com/2022/09/22/apple-issues-ios-16point0point2-update-to-fix-camera-hard-reset-bugs.html |
This is the third time that Federal Reserve raising interest rates by 75 basis points. For individual consumers, though that is not the rate they pay directly, the Federal Reserve's moves actually influence the borrowing and saving rates they see every day.
Since most credit cards have variable interest rates, this is directly related to the federal funds rate. According to an analysis by WalletHub, a personal finance website, consumers with credit card debt will pay a total of $5.3 billion in additional interest as a result of this rate increase. If you take into account all the interest rate hikes from March till now, credit card users will pay about $20.9 billion more in 2022.
In terms of car loans, the latest move by the Federal Reserve could bring the average interest rate on new car loans above 6%. According to the U.S. auto sales and information service provider Edmunds, for a total of $40,000, the loan term of 72 months of new car loans, if the annual interest rate is from 5% to 6%, consumers will pay an extra $1,348 in interest. In addition to this, home loans will also rise. Of course, the Fed's rate hike will also drive a slow rise in bank deposit rates, which is good news for those who have savings.
In general, the current U.S. consumption is still strong, mainly because the job market is still hot and basically in a state of full employment. Low unemployment and rising wages may sound good, but for the Federal Reserve, it will worry about inflation staying high as a result. Powell has repeatedly stressed before that the Fed wants to see a slowdown in the labor market to ease inflation.
Then in this meeting, the Fed predicted that a rate increase would push up the unemployment rate. From the current 3.7% to 3.8% in the 4th quarter, until 4.4% in the 4th quarter of next year. And for the cooling of the job market, the market's interpretation is that this means a recession cannot be avoided.
Chief Executive Officer, DoubleLine Capital
"Well, a very strong indicator of recession is when the unemployment rate crosses its 12-month moving average. So if the Fed is right, and the unemployment rate rises to 4.4, by year-end, that will be a corroborative indicator of recession."
In addition to raising interest rates, the Fed is also unwinding the balance sheet at the same time. Such tight monetary policy has not been seen in years. We will also keep you posted on when we can see a meaningful decline in U.S. inflation. | 2022-09-23T02:50:39Z | www.cnbc.com | CCTV Script 22/09/22 | https://www.cnbc.com/2022/09/22/cctv-script-22/09/22.html | https://www.cnbc.com/2022/09/22/cctv-script-22/09/22.html |
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