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A customer looking at the price of limes at a fruit stand in Sydney. According to Australia's Bureau of Statistics, Australia's inflation rate rose to 6.1 in June, a 21-year high.
"And this is on the backdrop where housing prices have actually increased by 39% over the last two years."
While the housing sector is highly vulnerable to higher interest rates, actual housing construction should remain solid for a while...
chief economist, AMP Capital
We're quite bullish on the Australian economy, says Bank of Queensland
The economist added that Australia's gas prices have not shot up anywhere near as much as that in Europe, and the falling Australian dollar
will provide a buffer against global weakness. | 2022-10-16T21:49:29Z | www.cnbc.com | Robust or vulnerable? Experts are split on Australia's economic outlook | https://www.cnbc.com/2022/10/16/robust-or-vulnerable-experts-are-split-on-australias-economic-outlook.html | https://www.cnbc.com/2022/10/16/robust-or-vulnerable-experts-are-split-on-australias-economic-outlook.html |
CEO of Singapore's multi-million dollar homecare start-up shares top tips for success
"Building an app that can mobilize people and then scaling that as a sustainable business, that drives me. It's doing good, while doing well," said Gillian Tee, co-founder and CEO of Homage.
technology, entrepreneur, startup, Singapore, aging population
After spending 15 years abroad, Singaporean entrepreneur Gillian Tee decided to return home in 2016 to be closer to her family.
It was what she called "the perfect storm."
Three of her close relatives were living with chronic illnesses and Tee quickly discovered the "pain points" of caring for individuals who need specialized care.
"Let's say you fell and broke your hip, the medical part is quite clear. You have to find specialists, you can go to… [a] public hospital or private hospital," Tee said.
"But what happens when you need to come home, when you need to transition back to your community and your home, what is the care plan? What is the right thing to even think about, in terms of proofing the home, mobility aids?"
Homage provides a range of home care services, including daily living assistance, nursing care and home therapy.
That's when she decided to start Homage, a company that matches patients who need long-term home care with qualified caregivers.
Since 2017 when the company was founded, the startup has raised $45 million, she said naming notable investors such as Golden Gate Ventures Sheares and Healthcare Group — a Temasek wholly owned subsidiary, as well as early stage venture firm 500 Startups.
But this is not the 40-year-old's first foray into entrepreneurship. She was a management consultant for Accenture when she chanced upon a book that changed the course of her career.
"I started off as a software developer and I was just very drawn to it because I liked building things. But what really hit me was this concept of application," she told CNBC Make It.
How do I use technology to build something that people can use, and it impacts their lives?
Gillian Tee
Co-founder and CEO, Homage
She was referring to the book Founders at Work: Stories of Startups' Early Days, written by Jessica Livingston, who co-founded seed stage investment firm Y Combinator.
"How do I use technology to build something that people can use, and it impacts their lives?"
And so began Tee's entrepreneur journey, which includes spending two years in Silicon Valley, where she co-founded Rocketrip in 2013. It is a website that incentivizes business travelers to save their employers money on trip expenses.
The company raised $32 million — including $15 million from Google Ventures — before being acquired by Mondee Holdings in 2020.
This serial entrepreneur shares her top tips for running successful startup.
Be it building an app for travel or health care, the business fundamentals never change, said Tee.
"You need to know your market really well. Know your cost drivers, growth drivers and demand drivers."
Homage is currently in three markets — Singapore, Malaysia and Australia, where there are "unique characteristics" that connect well to the problem that the company is trying to solve, Tee added.
"We looked at caregiver shortage, the nature of the aging population and chronic illnesses — which interestingly, is not just caused by age, but highly correlated with urbanization."
While users of Homage extend beyond seniors, the opportunity in eldercare technology continues to grow as people live longer. In Asia alone, one in four people will be over 60 years old by 2050, according to the Asian Development Bank.
Apple & Aetna team up on new app to track, reward healthy behavior
However, Tee said she is "a big fan of going deep and not overspreading" the business.
"Focus is everything. We do have a very clear view of what the markets are, if we should expand to more [countries]. But right now the current focus is on deepening our current markets," she added.
Business fundamentals are important, but entrepreneurs should "anchor first on people," said Tee.
This has served Homage well in providing the best care for its clients, and for Tee, who had no prior experience in the health-care industry.
I try to do the best I can, but I bring on people who are much better than me.
"It's important to lean on specialists for clinical governance and compliance. That's why we have our director of nursing, for example, who has 20 years of experience across different medical settings," Tee shared.
"A big part of what we do is we need to synthesize care quality with the product and technology. That's the team you need to build — I try to do the best I can, but I bring on people who are much better than me."
3. Focus on the '100 good things'
Being an entrepreneur can be isolating, said Tee, especially so when you are a woman.
"You get snide comments, but of course, less so now because there's a reputation and respect that's been built up."
But things were not always easy in the beginning. "For example, [a director] once told me, 'You know, now I know why the newspapers feature you, because your eyes are so beautiful.'"
"This is my mantra like everything I go through: I have to be twice as assertive, more data-driven and be super sharp. I do think we [female entrepreneurs] have to do more to prove our point."
Female entrepreneurship is growing as number of female active business owners rise
Even so, Tee has learned to take things in her stride and lean on the people who matter.
"There's 100 problems, but there's also 100 good things. You got to really tune out the noise and be okay going through that intensity," she added.
"It's exhilarating in some ways, but tiring in many others. Lean on your team, be open, vulnerable, transparent with them. I think that's the most important thing."
What does innovation mean to Tee? It's about making an impact on users.
"The mission of Homage is so near and dear to me. At the end of the day, there's nothing better than building something that people can get a solution out of," she said.
"At the end of the day, there's nothing better than building something that people can get a solution out of," said Gillian Tee, co-founder and CEO of Homage.
Since 2017, Homage has provided over 1 million caregiving hours, with a team of 15,000 care professionals across its three markets, the company said.
Over the past two years, its business in Malaysia and Australia has also grown "700% year-on-year," it added.
"Building an app that can mobilize people and then scaling that as a sustainable business, that drives me. It's doing good, while doing well."
Don't miss: A Goldman banker quit his job to build a startup — and scored an Alibaba deal. He shares 4 top tips | 2022-10-17T01:09:36Z | www.cnbc.com | CEO of Singapore healthcare startup Homage shares top tips for success | https://www.cnbc.com/2022/10/17/ceo-of-singapore-healthcare-startup-homage-shares-top-tips-for-success.html | https://www.cnbc.com/2022/10/17/ceo-of-singapore-healthcare-startup-homage-shares-top-tips-for-success.html |
Three of our Club stocks are scheduled to report their latest quarterly results this week, led by pharma giant Johnson & Johnson (JNJ) on Tuesday morning. Procter & Gamble (PG) and Danaher (DHR) on deck the following two days. Here's how we're thinking about J & J, P & G and Danaher heading into their prints, along with Wall Street estimates provided by Refinitiv. In case you missed it: We covered some of the big-picture themes we're watching this earnings season, which began in earnest Friday with the results of major U.S. banks including Club stocks Morgan Stanley (MS), which missed its third quarter , and Wells Fargo (WFC), which beat estimates . Johnson & Johnson Set to report before the bell Tuesday Projected revenue: $23.36 billion for Q3 Projected EPS: $2.48 for Q3 Club thoughts: The strong U.S. dollar and inflation are likely to be two overhangs on Johnson & Johnson 's third quarter. The company gets about 50% of its revenues domestically. When reporting its second quarter, back in July , J & J took down its full-year profit outlook due to currency headwinds. The U.S. Dollar Index is even higher now than it was then. Nevertheless, we don't expect too many surprises in this report as J & J prepares to break itself up in two distinct, publicly traded firms next year — one with its consumer health brands such as Tylenol, Listerine and Band-Aid, and the other with its pharmaceutical and medical devices units. In late September, J & J announced that Kenvue would be the name of the standalone consumer health company. We like the breakup plan and think both separate companies will be attractive for their own reasons. Plus, J & J is a classic defensively oriented stock. While down around 3.5% year to date, that's not nearly as bad as the S & P 500 's decline of more than 23% in 2022. Procter & Gamble Set to report before the bell Wednesday Projected revenue: $20.35 billion for fiscal Q1 2023 Projected EPS: $1.55 for fiscal Q1 2023 Club thoughts: Similarly to J & J, the dollar's strength promises to also remain a thorn in the side of Procter & Gamble . That's because the consumer staples titan — behind such brands as Tide laundry detergent, Bounty paper towels and Crest toothpaste — gets more than half its revenue outside overseas. Behind the U.S., its second-largest sales market is China, where economic growth has been challenged by Covid lockdowns. P & G has one of those weird fiscal years, so it'll be reporting first quarter 2023 results. We'll also be keyed into what management has to say about input costs. In recent quarters, they have pressured gross margins , but certain commodity and transportation costs have come down as of late. We think it's possible to see those longtime headwinds become a tailwind in the coming months. The reason is that P & G is unlikely to reverse the price hikes it put through to combat inflation. However, the challenges presented by the dollar, China and input costs are no secret to Wall Street, and many analysts have been bringing down their earnings estimates. P & G shares also are down more than 13% in the past three months, considerably underperforming the S & P 500 over that stretch, so investor expectations going into the quarter do not appear to be that bullish. We don't know when P & G will bottom, but in our minds they look closer to the floor than they do the ceiling; a dividend yield of nearly 3% at current prices also helps us be patient as we await for the turn in the stock. Danaher Set to report before the bell Thursday Projected revenue: $7.15 billion for Q3 Projected EPS: $2.26 for Q3 Club thoughts: We head into the earnings release knowing that, in mid-September, Danaher said its third-quarter revenue growth would be above its previously communicated guidance. Better-than-expected sales related to Covid testing played a key role in the strength. Importantly, it reaffirmed guidance for Q3 revenue growth in the high-single digit percentage range for its base business, which excludes Covid-related sales. The medical diagnostics and health technology firm last month also announced plans to separate its water-quality and product identification segment — known as Environmental & Applied Solutions (EAS) — into a publicly traded company. During last month's investor day , management discussed the planned EAS transaction, which is expected to close by the end of 2023. We'll see if there's any updated commentary on the matter during this week's post-earnings conference call. Shares of Danaher have dropped nearly 10% since the EAS separation and Q3 the revenue indication was announced. (Jim Cramer's Charitable Trust is long PG, DHR and JNJ. 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.
The Johnson & Johnson logo is displayed outside the company's headquarters in New Brunswick, New Jersey, Aug. 1, 2020. | 2022-10-17T10:30:49Z | www.cnbc.com | 3 of our stocks, including J&J, report earnings this week. Here's what we'll be watching | https://www.cnbc.com/2022/10/17/3-of-our-stocks-including-jj-report-earnings-this-week-heres-what-well-be-watching.html | https://www.cnbc.com/2022/10/17/3-of-our-stocks-including-jj-report-earnings-this-week-heres-what-well-be-watching.html |
Fox 's potential reunification with News Corporation could actually be a set back from the stock's value, Credit Suisse warned. Analyst Douglas Mitchelson downgraded the stock to neutral from outperform and cut his price target by 12% to $36, which implies an upside of 14%. He said the potential combination of Fox and News Corp. would be a bad investment — and even just the idea could hurt the stock. "The pivot seems a tacit admission of challenges for Fox," he said in a Sunday note to clients. "Even if this merger does not ultimately come to fruition, the investment backdrop for Fox has been altered." Fox announced late Friday that leaders of both organizations have separately begun exploring the combination of the two. No decisions have been made, the note said, nor have any changes been made to either's operations. If a merger did happen, it would be a reunion of the two Rupert Murdoch-owned entities, which were broken up about a decade ago. News Corp. owns outlets such as The Wall Street Journal, MarketWatch and Barron's. Fox sold off the bulk of its entertainment assets to Disney following the separation. Mitchelson said a merger would likely be approved with ease given the Murdoch Family Trust's voting bloc in each. He said a stock merger could take place, or one could rein if there's a perceived discount involved. But he said a merger, or even talk of one, shows Fox is struggling to use its $5 billion in cash to acquire and expand its $17 billion market cap. While he said patient investors might see some long-term value, he said News Corp. doesn't solve Fox's need for more video in streaming while pushing the stock's value into discount territory. It can also signal Fox's recognition that it its facing a dearth of stand-along value creation opportunities and more secular concerns, he said. Because of this, he said short-term investors may flock away from the stock as the company thesis would be more complicated. Mitchelson noted arguments for a merger include creating a larger-scale global publishing company, but he said that could also be achieved by selling Fox News to News Corp. without the merger. "It's true that both companies have strong balance sheets and both are trading at healthy discounts to asset value, so a merger is less disruptive than it otherwise might be," Mitchelson said. "Still, an irony not likely to be lost on investors is that these two companies were actually separated to create value just over 9 years ago." — CNBC's Michael Bloom contributed to this report. | 2022-10-17T10:31:01Z | www.cnbc.com | Credit Suisse downgrades Fox, says reunion with News Corp. could hurt more than it would help | https://www.cnbc.com/2022/10/17/credit-suisse-downgrades-fox-says-reunion-with-news-corp-could-hurt-more-than-it-would-help.html | https://www.cnbc.com/2022/10/17/credit-suisse-downgrades-fox-says-reunion-with-news-corp-could-hurt-more-than-it-would-help.html |
Kanye West is buying conservative social media platform Parler, company says
Controversial social media networking site Parler says it is being acquired by Kanye West. The platform, a favorite among American conservatives, made the announcement in a press release Monday.
West, who now goes by the name "Ye," said in a statement: "In a world where conservative opinions are considered to be controversial we have to make sure we have the right to freely express ourselves."
The platform, often used by supporters of President Donald Trump, was swept in controversy over the role it played in the Jan. 6 riots at the Capitol building. That led a slew of tech companies, including Google | 2022-10-17T10:31:13Z | www.cnbc.com | Kanye West is buying conservative social media platform Parler, company says | https://www.cnbc.com/2022/10/17/kanye-west-is-buying-conservative-social-media-platform-parler-company-says.html | https://www.cnbc.com/2022/10/17/kanye-west-is-buying-conservative-social-media-platform-parler-company-says.html |
The major U-turn includes scrapping the cut in the lowest rate of income tax from 20% to 19%, as well as cuts to dividend tax rates, the reversal of off-payroll working reforms, VAT claim-backs for tourists and the freeze on alcohol duty rates.
Hunt said the reversed tax cuts totalled £32 billion a year.
The chancellor also announced that the energy package designed to subsidise consumer and business energy bills would only run until April and then be reviewed in order to "cost the taxpayer significantly less than planned."
"A central responsibility for any government is to do what is necessary for economic stability," Hunt said in a statement.
"No government can control markets, but every government can give certainty about the sustainability of public finances. That is one of the many factors that influence how markets behave. For that reason, although the prime minister and I are both committed to cutting corporation tax, on Friday she listened to concerns about the mini budget."
Hunt said a full statement with questions would come in parliament later Monday, but because the details were market sensitive he wanted to give a brief summary in an effort to instil "confidence and stability."
The government had already been forced to U-turn on both its plan to scrap the top rate of income tax and ditch a planned rise in corporation tax from 19% to 25%.
On Friday, Prime Minister Liz Truss fired her Finance Minister Kwasi Kwarteng less than six weeks after the pair took office, appearing to blame the chaos sparked in financial markets by the budget he announced on Sept 23.
It included unfunded tax cuts forecast to total £45 billion ($50.78 billion), which were billed by Truss and Kwarteng as a radical plan to turbocharge the U.K.'s sluggish economic growth and were a key part of Truss's leadership campaign.
However, markets were spooked by a range of factors including the prospect of significantly higher government debt given the impending subsidies of consumer and business energy bills, and the perceived mismatch between the Bank of England's current monetary tightening to tame inflation and the government's stimulus package. The lack of economic forecast from the U.K.'s Office for Budget Responsibility also weighed on markets.
The pound's year-long decline against the dollar accelerated and U.K. government bonds, known as gilts, saw a dramatic sell-off. The Bank of England launched a temporary bond-buying program to support the market, which ended Friday, in large part to protect liability driven investment (LDI) funds — many of which are owned by pension plans — from collapse.
Sigh of relief?
News that Hunt would make a fiscal announcement Monday — earlier than expected — saw the pound
rise 0.8% against the dollar to trade around $1.117.
Yields on U.K. government bonds also fell sharply. Yields move inversely to prices.
The ruling Conservative Party will be hoping that the arrival of Hunt, who has held previous roles as health and foreign secretary but was a so-called "backbench" member of parliament until Friday, will give the government a much-needed boost in support.
Political polling shows the party plunging to lows not seen since the 1990s and Brits also a difficult winter of higher prices.
John Gieve, former deputy governor at the Bank of England, told the BBC Monday morning that leaks from the Treasury showed the U.K. deficit was nearing £70 billion.
"Hunt realised even if he squeezes public expenditure hard he won't be able to square the books doing that," he told the Today program."So he can't afford the sort of tax cuts, even the £25 billion that remain on the table."
Media reports have emerged of discontent with Truss's premiership from her own MPs just 40 days since she took the job. However, under current Conservative party rules a fresh leadership election cannot be held for 12 months. | 2022-10-17T10:31:19Z | www.cnbc.com | U.K.'s new finance minister sets out | https://www.cnbc.com/2022/10/17/uks-new-finance-minister-sets-out-.html | https://www.cnbc.com/2022/10/17/uks-new-finance-minister-sets-out-.html |
This stock market is torturous. After nearly a year of distress, investors are starting to accept the lack of ability to make money and the ease with which money has been lost. I spent yesterday in the City of Brotherly Love doing bottle signings for my wife's Fosforo Mezcal, a tobala agave spirit that is the exact pick-me-up this market needs. Anyway, I always say I will talk stocks, sports and spirits. Philly is consumed by sports right now, on the cusp of what could be some of the most exciting days ever with Phillies advancing to the National League Championship Series and the Eagles off to a 6-0 start in the NFL. But the conversation always turns to stocks and I am always comfortable talking stocks. Here's what I learned from my canvas of dozens of people this week — a group that is in sync with all the folks I talk to all the time when I walk around the New York Stock Exchange. 1. Most people are staying the course This too shall past. We know to ride it out. This is terrific from a historical point of view, because this stance has proven right over the up-and-down cycles of the past, as I pointed out in last week's October "Monthly Meeting" for Club members. But it's not so hot from a sentiment point of view, because it is so far from a capitulation that I fear an elongated bear market. I probably spoke to a dozen Club members and we all had a more resigned attitude, accepting that there aren't many opportunities right now. Most were glad that I told it like it is — is there another way? — and didn't sugarcoat that there's not much to offer. There are a few stocks here that I like, nothing to pound the table on. When one of your favorite groups, a potential leadership sector, is the banks, there is no enthusiasm for the market. 2. Many have fallen in love with the 2-year Folks know they should be investing for the long term right now, but they also know that the yield on the 2-year Treasury is just under 4.5%. That's a pretty good return, especially in this market. Sentiment followers: It's a good sign that people no longer fear of missing a move, but a bad sign that they can park themselves in a 2-year Treasury and do much better than stocks. Most people were bummed that I didn't like the market. But they were incredibly respectful. Most were watchers and they know I have been cautious. I think at another time they would wanted names—favorites from the trust say-but when asked, and I was, I responded by saying you should go watch last Thursday's Club meeting and you'll see how you feel. 3. They see too much junk in the market People have been burned by all the junk that's been put out by the market's puppeteers. Their reaction, for the most part, is that there are so many bad stocks that they should just invest in ETFs, preferably ones that track the S & P 500. They did seek verification that this was an okay strategy, given that I am a stock guy. All I could say was please be careful, you can lose money in an index fund, too. I asked everyone if they were in cryptocurrencies. Got a lot of "been there, tried that, lost money, no thank you." I asked everyone if they were in special purpose acquisition companies (SPACs). More "been there, tried that, lost money," except one guy who was a promoter in some SPACS. He got shares for nothing and made fortunes and continues to make fortunes because even down here it makes sense to sell. I think it is sad what the SPACsters and the brokerage houses did by favoring rich institutions and hurting them with bogus merchandise. Everyone's been hurt by one or more of these. I fear that still one more generation has been destroyed by the greed of those who could not resist SPACs or IPOs of name brands that have no hope of being profitable. 4. They're very tired This was the most sober and downcast I have seen people since 2008, the only difference now is a disgust with politics in general and Washington specifically. For what it is worth, no one blamed Federal Reserve Chair Jerome Powell. I asked if anyone owned any FAANG stocks. The answer: Tried it but lost too much money. No one would ever think about buying Meta Platforms (META) or Amazon (AMZN) or Alphabet (GOOGL) again. They still own Apple (AAPL) for the most part. Again, if you are coming to a bottle signing for Fosforo, you know my view about Apple. Inflation came up constantly, but there was also a sense of ennui about what can be done about it. Many of the people I spoke to wanted to try to buy property — there are some terrific up-and-coming neighborhoods in Philadelphia — but the rate hikes took that off the table. Bottom line So let me give you my main takeaway from all of these conversations: The market has worn people down. The bear has won. The lack of desire to discuss the market other than how bad it is has really become pervasive. I know there are clowns on Twitter who despise me and say that I got them in at the top, but I pretty much heard the other way, especially given that we turned bearish last November. Most just want to wait until the Fed is done raising interest rates and I am not one to criticize this view. I do say there will come a time when that attitude is too negative. But we are not at that time. All in all I am glad people are cautious. When oil goes down or when rates tick up, or the dollar goes higher and the market reacts to it in a vicious fashion, people don't want to go anywhere near it. So they don't. (Jim Cramer's Charitable Trust is long META, AMZN, GOOGL and AAPL. 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.
Jim Cramer in front of the NYSE, June 30, 2022. | 2022-10-17T14:34:43Z | www.cnbc.com | Cramer: 4 things I learned from talking to a dozen Club members and other investors over the weekend | https://www.cnbc.com/2022/10/17/cramer-4-things-i-learned-from-talking-to-a-dozen-club-members-and-other-investors-over-the-weekend.html | https://www.cnbc.com/2022/10/17/cramer-4-things-i-learned-from-talking-to-a-dozen-club-members-and-other-investors-over-the-weekend.html |
Daily active users were 57.8 million in September, up 23% year-over-year.
Hours engaged were 4.0 billion in September, up 16% year-over-year.
A man photographs a Roblox banner displayed, to celebrate the company's IPO, on the front facade of the New York Stock Exchange (NYSE) in New York, March 10, 2021.
Shares of Roblox
jumped 18% on Monday morning after the company released its September 2022 metrics report.
Daily active users were 57.8 million, up 23% year-over-year.
Hours engaged were 4 billion, up 16% year-over-year.
Estimated bookings were between $212 million and $219 million, up 11% - 15% year-over-year. | 2022-10-17T14:34:55Z | www.cnbc.com | Roblox stock pops 18% on September user growth | https://www.cnbc.com/2022/10/17/roblox-stock-pops-18percent-on-september-user-growth.html | https://www.cnbc.com/2022/10/17/roblox-stock-pops-18percent-on-september-user-growth.html |
Rep James Clyburn, chair of the House Select Subcommittee on the Coronavirus Crisis, asked the CFPB to investigate Experian, Equifax and TransUnion for failing to address consumer disputes during the pandemic.
The select subcommittee found evidence that the agencies discarded disputes without investigation.
Clyburn said the credit raters potentially violate the Fair Credit Reporting Act.
A key Democrat wants credit reporting agencies Equifax
, Experian
and TransUnion
investigated for allegedly failing to respond to consumer complaints during the pandemic.
Clyburn asked the chief executive officers of Equifax, Experian and TransUnion in May for the companies' responses to consumer complaints in the early days of the pandemic.
And the majority of credit report disputes have not resulted in the correction or removal of reported errors from credit reports. The subcommittee found that Equifax didn't change more than half of the disputed items each year from 2019 through 2021. Experian corrected about 52% of the disputed late payments or other bad data while TransUnion made fixes to between 49% and 53% of credit reports during this time.
But consumers have been disputing information found in their credit reports on a larger scale than previously known, the subcommittee found. The CFPB estimated the combined number of dispute submissions among Equifax, Experian and TransUnion to be 8 million in 2021. But data obtained by the subcommittee showed Equifax, alone, received nearly 14 million complaints that year.
CFPB also received a "record-breaking" amount of complaints about the credit rating companies from 2020 through 2021 with more than 619,000 in 2021 alone. Consumers disputed nearly 336 million items, including names, addresses or credit accounts, on their credit reports from 2019 through 2021, the subcommittee found.
But the subcommittee says each agency uses vague criteria to determine which disputes are submitted by an unauthorized third-party. Equifax, for instance, tosses out mail that "tends to use identical language and format [and] come from the same zip code."
The subcommittee also found that the credit rating companies referred over half of the disputes to data furnishers for investigation between 2019 and 2021. TransUnion referred the most at 80% to 82%.
Data furnishers have been cited by the CFPB for conducting insufficient investigations. The bureau also cited the credit reporting companies for accepting these findings without an independent investigation.
The Consumer Data Industry Association, the trade association that represents Equifax, Experian and TransUnion, said that all disputes that consumers share directly with three credit raters are processed according to federal requirements. | 2022-10-17T14:35:14Z | www.cnbc.com | TransUnion, Equifax, Experian may have violated credit reporting rules, Rep. Jim Clyburn says | https://www.cnbc.com/2022/10/17/transunion-equifax-experian-may-have-violated-credit-reporting-rules-rep-jim-clyburn-says.html | https://www.cnbc.com/2022/10/17/transunion-equifax-experian-may-have-violated-credit-reporting-rules-rep-jim-clyburn-says.html |
Bank of America's customers continue to spend freely, using their credit cards and other payment methods for 10% more transaction volume in September and the first half of October than a year earlier, CEO BrianMoynihan said.
Pedestrians pass in front of a Bank of America branch in New York.
Consumers are financially resilient, despite high inflation and concerns the U.S. is nearing a recession, according to Bank of America
CEO Brian Moynihan.
"Analysts might wonder whether the talk of inflation, recession and other factors could [result] in a slower spending growth," Moynihan said Monday during a conference call to discuss third-quarter results that topped analysts' expectations. "We just don't see here at Bank of America."
Customers' account balances remain higher than before the coronavirus pandemic struck in early 2020, Moynihan said, indicating that they were in a good position to continue spending. That is especially true for those who had the smallest balances, which were about 5 times higher than before the pandemic, according to a Bank of America chart.
"We're just now seeing [a] gradual move off these lows in early-stage delinquencies; late-stage delinquencies are still 40% below pre-pandemic," Moynihan said. | 2022-10-17T15:22:29Z | www.cnbc.com | Bank of America CEO Brian Moynihan says the U.S. consumer is healthy | https://www.cnbc.com/2022/10/17/bank-of-america-ceo-brian-moynihan-says-the-us-consumer-is-healthy.html | https://www.cnbc.com/2022/10/17/bank-of-america-ceo-brian-moynihan-says-the-us-consumer-is-healthy.html |
Bitcoin's mining difficulty rose to an all-time high last week for the second time in a month, which is great for the health of the network but has been putting pressure on crypto miners. It now requires 35.6 trillion hashes to mine one bitcoin. That's about 13.55% higher than the previous difficulty adjustment two weeks ago and the highest adjustment in more than a year, CryptoQuant. The difficulty algorithm is programmed in the Bitcoin code to stabilize the network by ensuring each coin is mined at a steady pace of 10 minutes. If there's too much competition, that means the blocks are coming in too fast and the difficulty needs to go up, D.A. Davidson's Chris Brendler explained. By contrast, if there weren't enough competition, that would mean the blocks were coming in too slowly, and the difficulty would need to come down. The network's hashrate, a measure of computational power, tends to move in tandem with the difficulty, and has also been on a steady upward trend since the summer. "An increasing network hashrate is good for the health of the [Bitcoin] network," Brendler told CNBC Pro. "We want the hashrate to be larger because it means there's more and more energy being devoted to securing the network, making it broader and more decentralized. That is generally viewed as a positive for Bitcoin. It's certainly not a positive for miners." The problem for miners Miners have been feeling the heat since bitcoin fell below $20,000 and energy prices have increased. Last year, miners exited China after the government cracked down on bitcoin mining, resulting in a flood of activity shifting to the U.S., particularly Texas. But between the hot Texas summer and the falling price of bitcoin, many miners have been forced to stop. "This is a little bit of a conundrum right now because there's no reason to mine if it's not profitable because energy costs are higher," Brendler said. "So as the economics get squeezed, you should see competition fall and it's been rising." He cited cooling autumn weather, new deliveries and installations for the rising competition as smaller operations that have been shut out start to come back online. "If they can make it through to the other side, there'll be less competition left and the ones that survive will do extremely well in the stock prices," Brendler said. Some companies have been forced to raise dilutive capital in recent days, he added. Not only do they need to cover the cost of power, they need to make a spread to cover operating expenses. Bitcoin's static price It's possible another miner capitulation event, where miners sell their bitcoin earnings to keep their own operations going , could be on the horizon. Oppenheimer's Owen Lau acknowledged that while a growing hashrate is good for the network, margin compression is a worrying issue. It's possible another miner capitulation event, where miners sell their bitcoin earnings in order to keep their own operations afloat, could be on the horizon, he said. In previous years, there's been a positive correlation between the bitcoin price and the Bitcoin hashrate, but in this new macro-led market, investors shouldn't place too much faith in that, Lau said. CryptoQuant's Julio Moreno was more optimistic, but did not push the narrative that an increasing hashrate signals a bear market bottom in price. "The hashrate typically increases in bear markets. This was the case in 2013-2015, 2018-2019 and in the current bear market 2021-2022," CryptoQuant's Julio Moreno told CNBC. "Although prices do not necessarily have to increase given higher hashrate, we would expect prices to recover at some point to fairly compensate miners for their investment and expenses." | 2022-10-17T15:22:35Z | www.cnbc.com | Bitcoin mining difficulty hit an all-time high even with depressed prices | https://www.cnbc.com/2022/10/17/bitcoin-mining-difficulty-hit-an-all-time-high-even-with-depressed-prices.html | https://www.cnbc.com/2022/10/17/bitcoin-mining-difficulty-hit-an-all-time-high-even-with-depressed-prices.html |
$68 trillion is about to change hands in the U.S.
Sometimes not enough time is spent on the soft side of these family dynamics as opposed to just the numbers.
chairman of First Foundation Advisors
They want to use their assets as an agent of change.
president and CEO of Palisades Capital Management | 2022-10-17T15:22:41Z | www.cnbc.com | How to navigate the 'great wealth transfer,' according to top advisors | https://www.cnbc.com/2022/10/17/how-to-navigate-the-great-wealth-transfer-according-to-top-advisors.html | https://www.cnbc.com/2022/10/17/how-to-navigate-the-great-wealth-transfer-according-to-top-advisors.html |
Shares of WWE, the company behind Smackdown and WrestleMania, haven't traded at these levels since summer 2019.
Vince McMahon attends a press conference to announce that WWE Wrestlemania 29 will be held at MetLife Stadium in 2013 at MetLife Stadium on February 16, 2012 in East Rutherford, New Jersey.
is defying broader market trends this year.
The stock's strong performance this year occurred WWE's live wrestling-events business came roaring back after months of Covid restrictions and the company increasingly became the subject of sale talks. The stock continued to do well after the company's longtime leader and biggest shareholder, Vince McMahon, retired from the company over the summer in a cloud of scandal.
Shares of the company were effectively flat Monday after hitting $76.90. WWE's market capitalization is over $5.6 billion.
WWE has hinted that the hush payments to alleged victims, already the subject of an ongoing independent review overseen by the company's board, are under investigation by other entities.
–CNBC's Chris Hayes contributed to this report. | 2022-10-17T16:06:25Z | www.cnbc.com | WWE stock hits 52-week high in Vince McMahon scandal aftermath | https://www.cnbc.com/2022/10/17/wwe-stock-hits-52-week-high-mcmahon-scandal-aftermath.html | https://www.cnbc.com/2022/10/17/wwe-stock-hits-52-week-high-mcmahon-scandal-aftermath.html |
Jennifer Nealon, Marketing Director at Hear Again America, holds hearing aids that they sell on October 19, 2021 in Boca Raton, Florida.
Millions of Americans with hearing loss can now purchase hearing aids without a prescription or medical exam from Walgreens
, CVS
, according to the companies.
CVS is selling over-the-counter devices on its website with prices ranging from $199 to $999. The drug store chain will start also offering them at select pharmacy locations beginning in November.
Best Buy is offering 20 different over-the-counter hearing aids online with prices ranging from $200 to $3,000, according to the company. The electronics retailer will offer the devices in 300 stores across the country later this month.
President Joe Biden had issued an executive order in 2021 directing the Health and Human Services Department and FDA to develop a rule allowing over-the-counter sales of hearing aids. The White House announced the availability of the hearing aids earlier Monday.
Some 30 million people in the U.S. have hearing loss but only about one-fifth of these individuals have hearing aids and use them, according to FDA. Many people who could benefit from the devices either can't access them due to cost while other people don't use them due to perceived stigma, according the agency.
The FDA, in analysis, estimated that over-the-counter hearing aids could save consumers about $1,438 because they are not bundled with costly professional services. | 2022-10-17T17:33:15Z | www.cnbc.com | Hearing aids are now available over the counter from Walgreens, CVS and Best Buy | https://www.cnbc.com/2022/10/17/hearing-aids-are-now-available-over-the-counter-from-walgreens-cvs-and-best-buy.html | https://www.cnbc.com/2022/10/17/hearing-aids-are-now-available-over-the-counter-from-walgreens-cvs-and-best-buy.html |
Health and tech are providing heat in what is otherwise a lukewarm year for merger and acquisition deals, according to Bank of America. The bank reported 150 deals so far this year, which annualized comes in about 9% lower than last year. That makes sense given lower market returns typically make for a weaker deal landscape, said strategist Jill Carey Hall. But health care and tech are on pace for their best dealmaking years since 1997 and 2016, respectively. Deals in biotech is specifically up due to cheaper valuations, vulnerable sellers and a growing interest in big pharma. Tech, led by software, is also up because of ample cash from strategic acquirers and sub-sector fragmentation that is leaving small fish for those with bait. Bank of America screened for small-cap companies that could have merger or acquisition potential. Hall looked for Russell 2000 stocks that met the following criteria: Single share class Have more than 90% of share available for purchase Three years of positive operating cash flow The bank also looked for stocks with median net debt to earnings before interest and tax that was below the industry group and a 15% discount to median industry group valuation for enterprise value, or a company's total value, compared to operating cash flow, free cash flow and earnings before interest and tax. While Hall noted there is no way to know if a company will be part of a merger or acquisition until it happens, these stocks are among those primed for a deal. InterDigital , a company focused on immersive technology for wireless and video, signed a seven-year patent deal with Apple earlier this month valued at more than $900 million. It also boosted its revenue outlook for the third quarter to between $112 million and $115 million from between $96 million and $100 million. The stock is down 32.9% this year, performing slightly below the tech-heavy Nasdaq. Perdoceo Education , which uses technology to operate for-profit higher education institutions, also made the list. The company reported earlier this summer that revenue, operating income and student enrollments at two of its largest schools were all down for the quarter and year compared to the same respective periods a year ago. It is beating the Nasdaq but down 10.5% so far this year. Vanda Pharmaceuticals , known for its sleep and schizophrenia treatments, announced a partnership with OilPass to research and develop modified peptide nucleic acid. Vanda has shed 36.2% year to date. Meanwhile, Supernus announced last week it needed to answer further questions from the Food and Drug Administration to get its drug infusion device for treating Parkinson's disease "back on track towards potential U.S. approval." The pharmaceutical company's shares have jumped 13.6% this year. — CNBC's Michael Bloom contributed to this report. | 2022-10-17T17:33:36Z | www.cnbc.com | There are signs of change in the M&A market. Bank of America gives their buyout candidates | https://www.cnbc.com/2022/10/17/there-are-signs-of-change-in-the-ma-market-bank-of-america-gives-their-buyout-candidates.html | https://www.cnbc.com/2022/10/17/there-are-signs-of-change-in-the-ma-market-bank-of-america-gives-their-buyout-candidates.html |
Microsoft (MSFT)'s PC business is likely to be a weak spot when the Club holding reports earnings next week — but it might not drag down the company's overall results as much as some fear, according to Bernstein analyst Mark Moerdler. While we'd welcome that development, we're realistic about the challenges in PCs right now. In a note to clients Monday, Bernstein dove deep into Microsoft's Windows business after declining PC shipment data sparked renewed worries about its implications for the tech giant. However, the firm made the case that Microsoft's cloud computing shift — the core part of the Club's investment thesis — should help cushion the blow to fiscal 2023 first-quarter numbers. "Windows was always been an important part of the company, its franchise, and results. But with the shift to Cloud, Windows has a become less critical driver of revenue and earnings," Bernstein wrote, adding that Windows has lately seen slower growth with "with consumer Windows having lost share." "That does not mean that it is not important and that PC weakness will not impact results, but we do not believe the impact will be as large as some may believe," the analyst said. "In addition, Microsoft had already baked in weakness into their guidance." In July, Microsoft said it expected between $13 billion and $13.4 billion in revenue for its "More Personal Computing" segment in the first quarter. At the time, that guidance was below the $13.82 billion estimate, according to FactSet. Analysts are now expecting $13.22 billion in "More Personal Computing" revenues, according to FactSet. Details of Bernstein's case Bernstein listed a number of reasons why it thinks Microsoft won't be hit with the worst-case PC scenario, including that the most pronounced weakness so far has been in lower-end consumer machines. That's notable, the analyst argued, because "most of Microsoft's OEM revenue is from commercial and high-end PCs." By contrast, Bernstein estimates only around 20% of Windows revenue comes from consumer PCs. There could also be a timing component at play that investors should keep in mind. The analyst explained that Microsoft records revenue when PCs using its Windows operating system are boxed and shipped from the manufacturer — not when sold to a consumer. "In other words weakness in calendar Q3 may not be felt until Q4 or later depending on channel inventories," Bernstein wrote. Moreover, Bernstein said an increasing portion of Windows revenue falls under the annuity model, which includes sales of subscriptions that feature Windows as well as Office productivity software. The revenue in this area is not necessarily linked to the number of PCs sold each year. Club take The decline in PC sales after a few booming years during the Covid pandemic has been on our radar for months. We knew it could weigh on Microsoft in the near term as sales normalize a bit. However, Bernstein made an interesting case about the makeup of Windows revenue, and we see how the analysts could conclude that Microsoft won't be the hardest hit by the PC slowdown. In this market, we need to keep our expectations in check and be mindful that conditions are constantly changing — not always for the better, as we saw with Club holding Advanced Micro Devices (AMD). The chip designer chose to issue preliminary third-quarter results earlier in the month due to weaker-than-expected PC sales, even after management revised lower its industry outlook in early August. Perhaps more importantly for Microsoft, we remind Club members that our primary reason for investing in the company is its Azure business. The cloud computing service — which hosts websites and software applications — is the main long-term growth driver, underpinned by secular trends toward digitization. That is in contrast to PC hardware sales, which we understand are more cyclical in nature. Similarly, when Microsoft reports on Oct. 25 after the bell, we expect to hear a lot about challenges associated with the strong U.S. dollar. That's been a problem for the tech giant in recent months because it generates roughly 50% of its revenue outside the U.S. When earnings booked overseas in weaker currencies are converted into U.S. dollars, it can cut into profits. The U.S. Dollar Currency Index, which measures the greenback against a basket of foreign currencies, is even higher now than it was in late July, when MSFT last reported earnings . While currency headwinds have a real effect on the company, we don't really factor them into our long-term investment decisions because they're unpredictable and can be cyclical, too. We're aware of them, so we can prepare for all possible outcomes for companies in which we're shareholders, but they're not central to our investment thesis like cloud-computing growth is for Microsoft. Next week, we'll be paying close attention to Microsoft's cloud results and management's commentary on the overall enterprise spending environment in the face of economic downturn. A global recession is definitely one of the biggest near-term risks to Microsoft's results, so we'll want to hear how Microsoft's clients are acting. Another thing to keep in mind ahead of the quarter is that Microsoft only provides formal guidance on its earnings conference call. Oftentimes, the stock may go one way in extended trading after the quarterly numbers are released, before turning around based on the guidance. That's why paying attention to the call is so important in reaching a conclusion. (Jim Cramer's Charitable Trust is long MSFT and AAPL. 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.
Satya Nadella, chief executive officer of Microsoft Corp. | 2022-10-17T19:35:01Z | www.cnbc.com | The PC slowdown's impact on Microsoft's profits and our investment thesis | https://www.cnbc.com/2022/10/17/the-pc-slowdowns-impact-on-microsofts-profits-and-our-investment-thesis.html | https://www.cnbc.com/2022/10/17/the-pc-slowdowns-impact-on-microsofts-profits-and-our-investment-thesis.html |
TJX Companies (TJX) is competitively positioned to weather an economic slowdown, JPMorgan said Monday, underscoring the Club case for owning the off-price retailer. JPMorgan analysts added TJX — whose brands include T.J Maxx, Marshalls and HomeGoods — to their "Analyst Focus List," while reiterating an overweight rating and a Dec. 2023 price target of $80 a share. TJX stock, which is down about 13% year-to-date, was trading up more than 4% in midday trading Monday, at roughly $66.23 a share. The company's bargain department stores have historically remained appealing to shoppers during times of economic uncertainty, ranking TJX within "the top 10 percentile of consumer discretionary equity performance during an economic slowdown/contraction," the analysts wrote. Wall Street's take TJX has benefited greatly from an apparel inventory glut it's been able to tap into and then turnaround to bargain shoppers at lower prices. That's helped to insulate the retail operator from a recession, JPMorgan analysts argued, and should allow management to make good on its promise to expand merchandise margins within the next three years. TJX's partnership with 21,000 global vendors has proved a key advantage, providing the company with a better mix of brand names compared to last year, according to the analysts, while allowing it to cater to a "higher-income demographic." Many of these brand names, including Canada Goose, Vince, Calvin Klein, Tommy Hilfiger, and Michael Kors, helped bolster sales in the last quarter, JPMorgan fieldwork showed. At the same time, T.J. Maxx and Marshall's core middle-to-high-income shoppers remain "relatively more resilient" to economic headwinds than other bargain retailers like Ross Stores (ROST) and Burlington Stores (BURL). Still, JPMorgan warned that a worsening economic outlook, coupled with a potential uptick in unemployment, could weigh on consumer spending and force the bank to revise its rating and price target for TJX. "A greater-than-expected downturn in household spending could cause sales trends to decelerate below our current assumptions, rendering our estimates too high," the analysts wrote. The Club take As name-brand retailers liquidate their excess merchandise and cancel orders, TJX should be there to opportunistically scoop up high-quality brands at discount prices. This is exactly why we initiated a position in TJX in August, with the foresight the company would benefit from a flush of designer names. We're upbeat that TJX can capture high-quality merchandise at the best prices the company has seen in years, and this should help boost its margins at a time when other retailers are struggling. TJX stock was also one of the best performers in the Club portfolio in the third quarter, gaining 11.4%, a sign the market is gaining appreciation for the off-price chain operator. We're happy to see the stock up in the wake of the JPMorgan note Monday, but we're not going to buy more shares here. As always, we don't like to chase a stock on its way up — we'd rather wait for a pullback to add to our position. TJX is set to report fiscal third-quarter results for 2023 on Nov. 16. (Jim Cramer's Charitable Trust is long 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. | 2022-10-17T20:40:12Z | www.cnbc.com | Bargain retailer TJX ready to navigate a recession, JPMorgan says | https://www.cnbc.com/2022/10/17/bargain-retailer-tjx-ready-to-navigate-a-recession-jpmorgan-says.html | https://www.cnbc.com/2022/10/17/bargain-retailer-tjx-ready-to-navigate-a-recession-jpmorgan-says.html |
: "I can't. I like profitable companies with good balance sheets. That is the definition of not that."
: "A lot of people bet against it, so it could be a very binary, up big, down big situation."
Texas Roadhouse Inc
: "We have to wait for that one to come down, because it's had too big a move."
: "We are going to find out what this story is, and then we're going to come back to you."
: "I can not recommend it, particularly because the company is losing money hand over fist." | 2022-10-17T23:21:12Z | www.cnbc.com | Cramer's lightning round: Wait for Texas Roadhouse to come down | https://www.cnbc.com/2022/10/17/cramers-lightning-round-wait-for-texas-roadhouse-to-come-down.html | https://www.cnbc.com/2022/10/17/cramers-lightning-round-wait-for-texas-roadhouse-to-come-down.html |
Former Theranos CEO Elizabeth Holmes (L) arrives at federal court with her partner Billy Evans on October 17, 2022 in San Jose, California.
SAN JOSE, Calif. — A star witness in the trial of former Theranos CEO Elizabeth Holmes doubled down on his testimony two months after he showed up at Holmes' doorstep to talk to her.
"I don't want to help Ms. Holmes, she's not someone who should be helped," said former Theranos lab director Adam Rosendorff. "The only person who can help Ms. Holmes is herself. She needs to pay her debt to society." | 2022-10-17T23:21:25Z | www.cnbc.com | Star witness in Holmes' Theranos trial: 'She needs to pay her debt' | https://www.cnbc.com/2022/10/17/star-witness-in-holmes-theranos-trial-she-needs-to-pay-her-debt.html | https://www.cnbc.com/2022/10/17/star-witness-in-holmes-theranos-trial-she-needs-to-pay-her-debt.html |
The Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), in Tokyo, Japan, on Monday, Nov. 30, 2020.
rose 1.46% and the Topix added 1.23%. Japan's yen
touched 149.08 against the dollar and was last trading near 148.90.
was 1.13% higher and the Kosdaq was 2.16% up. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.46%.
gained 1.27%. The Reserve Bank of Australia is expected to release its meeting minutes for its October meeting. | 2022-10-18T01:05:44Z | www.cnbc.com | Asia-Pacific markets rise after Wall Street jump; yen near 149-levels | https://www.cnbc.com/2022/10/18/asia-markets-economic-data-stocks-japanese-yen-currencies.html | https://www.cnbc.com/2022/10/18/asia-markets-economic-data-stocks-japanese-yen-currencies.html |
The vehicle – unveiled Monday night – launches the General Motors
brand into the ultra-luxury segment against the likes of Bentley and Rolls-Royce. It's something no American brand has successfully done in modern times.
Cadillac has not sold a hand-built vehicle for decades, but its crosstown rivals have offered such cars as custom performance models. Stellantis
' Dodge offered "one-of-one" custom vehicle builds for its Viper sports car in 2015. Since 2016, supplier and contract manufacturer Multimatic Inc. has produced a hand-built, $500,000 GT sports car for Ford Motor
, which is discontinuing the vehicle at the end of this year.
General Motors ramps up production of Cadillac Lyriq, company's first electric vehicle | 2022-10-18T01:14:20Z | www.cnbc.com | GM's Cadillac Celestiq EV costs $300,000 and is customizable | https://www.cnbc.com/2022/10/17/gms-cadillac-celestiq-ev-costs-300000-and-is-customizable.html | https://www.cnbc.com/2022/10/17/gms-cadillac-celestiq-ev-costs-300000-and-is-customizable.html |
The US core CPI data again exceeded expectations, mainly due to high inflation in the services category, such as housing, transportation, health services and so on. Analysis suggests that this is inextricably linked to structural problems in the U.S. labor market.
On the one hand, wages have not risen as much as inflation, leading companies to face continuous pressure to raise wages. This makes them pass on the pressure of labor costs to the consumer end. On the other hand, the U.S. labor supply has been suffering from a shortage of manpower. This problem has been exacerbated by the declining number of immigrants in recent years. In addition, the lack of relevant skills in the existing workforce is also becoming increasingly evident.
Once this inflation data was released, U.S. stock futures fell in response. The three major stock indexes also plunged at the open, but surprisingly, began a sharp reversal during the trading day. All three major stock indexes ended the day up more than 2%.
Data from SentimenTrader, a market analysis firm, showed that the move in the U.S. S&P 500 overnight set a record for the fifth-highest intra-day reversal from a low in history. And for inflation remaining high, but the market rose instead of falling, the reasons behind this are widely divergent.
Some analysts say investors may be betting that a higher-than-expected CPI may mean inflation will top out soon. Some analysts also believe that when there is enough bad news, good news may not be far behind. Consequently, should inflation remain high, leading the Fed to raise interest rates aggressively, the Fed will still need to adjust course by implementing an accommodative monetary policy, which is beneficial to the stock market.
In terms of rate hike expectations, CME federal rate futures show that the market sees the probability of the Fed raising rates by 75 basis points at its next meeting, up to more than 95% from about 85% yesterday, and does not even rule out the possibility of a 100 basis point hike.
"This battle to bring down inflation is underway, it's gonna slow down growth, inflation is gradually going to come down, but next year is going to feel It's gonna slow down growth. Inflation is gradually going to come down, but next year is going to feel painful."
The chief executives of U.S. companies are also not optimistic about the economic outlook. Last night, the Conference Board Measure of CEO Confidence™, a barometer of the health of the U.S. economy from the perspective of U.S. chief executives, was published.
The data shows that CEO confidence sunk further to start Q4 and is at its lowest level since the Great Recession. Ninety-eight percent of CEOs surveyed said they are preparing for a U.S. recession. Ninety-nine percent of CEOs surveyed said they are preparing for a recession in the EU. And remarkably, more than 40 percent of CEOs still stated they would continue to hire.
This confirms the structural problems in the labor market we mentioned at the beginning. Vice chairman of the U.S. Commerce Commission, former Fed vice chairman Roger Ferguson, said in an interview with CNBC that this report shows that the labor market remains tight, inflationary pressures are unabated, and the Fed will continue to raise interest rates sharply.
Roger Ferguson, Vice chairman of the Business Council and trustee of the Conference Board and former Federal Reserve vice chairman
"These anecdotal data also confirm what they are seeing in the most recent labor market statistics, which is that the labor market is still tight. And I think what the Fed has overall is inflation pressures have not really abated very much. That's something else that CEOs say, and therefore, I think they're continue on their path of one more tightening at 75." | 2022-10-18T04:17:04Z | www.cnbc.com | CCTV Script 14/10/22 | https://www.cnbc.com/2022/10/18/cctv-script-14/10/22.html | https://www.cnbc.com/2022/10/18/cctv-script-14/10/22.html |
In the environment of rising global food inflation, many low- and middle-income countries are already facing huge payment pressures. The soaring dollar may become another burden to them.
The dollar has been strengthening since March this year when the Fed started hiking rates. The dollar index has risen more than 14% so far, which makes life even more difficult for those in food-insecure areas.
Commodities, like oil and food, are traded in dollars. Dollar strength has drained the purchasing power of many countries' currencies.
According to a latest IMF report , countries that are highly affected by the food crisis will face an "additional" $9 billion in balance of payments pressure between 2022 and 2023 due to the rising cost of food and fertilizer imports.
As a result, their foreign exchange reserves will dwindle, making it harder for them to import food and fertilizer. According to an industry insider, many countries just can't afford to buy commodities anymore.
For example, in Bangladesh, the cost of wheat imports has risen by at least 20 percent due to the strong dollar. And in Egypt, one of the world's largest wheat importers, 80% of mills are out of wheat, according to the Chamber of Cereal Industry, as 700,000 tons of grain are stuck at the ports. In Ghana, the exchange rate of the U.S. dollar to the local currency "cedi" has risen about 80% this year. The executive secretary of the Ghana Importers and Exporters Association recently said in a media interview that the U.S. dollar is eating up our currency, the current situation is desperate, and there may be a shortage of food.
According to the IMF, the impact of the food shock is felt everywhere. The suffering is worst in 48 countries, many highly dependent on imports from Ukraine and Russia—mostly low-income countries. Of those, about half are especially vulnerable due to severe economic challenges, weak institutions, and fragility.
The latest data from the World Food Programme shows that more than 820 million people worldwide are currently undernourished. In addition, about 340 million people are in a state of extreme food insecurity. Eliminating this extreme food insecurity in the next 12 months will cost at least $50 billion.
In addition, according to the UN's FAO report, soaring food prices will also lead to increasingly serious differences in the diets of high-income countries and low- and middle-income countries. While developed countries are still introducing a wide variety of foods, poorer countries are expected to introduce fewer high-value products, such as meat, oilseeds, and beverages, and instead focus on staple foods, which will affect the diversity and quality of their diets. | 2022-10-18T04:17:17Z | www.cnbc.com | CCTV Script 17/10/22 | https://www.cnbc.com/2022/10/18/cctv-script-17/10/22.html | https://www.cnbc.com/2022/10/18/cctv-script-17/10/22.html |
New Chancellor of the Exchequer Hunt's announcement immediately calmed the markets. We've seen a positive reaction from both the currency and bond markets.
The pound rose against the dollar in response to the announcement of the policy change, then fell back slightly to around 1.135 at press time. This is well above the historic plunge of 1.03 when the large tax cut was previously announced.
In addition, we have seen UK 10-year and 30-year government bond yields fell in response.
Analysts believe that the market likes the fact that Jeremy Hunt is bringing forward the statement and that he does understand the importance of financial markets and speaking to investors.
Professor of Economics at INSEAD Antonio Fatas said that the U-turn demonstrated that the market used its own power to force the government to comply with fiscal discipline. In addition, it also reflects the game between the Bank of England and the government. Although the Bank of England stepped in to rescue the market, it set a time limit, forcing the government to turn over some fiscal policy.
We have also seen the market adjust to the Bank of England's expectations for future rate hikes. The latest market estimate is that the BoE's interest rate will peak next summer at about 5.2%. This is down from the 6.3% peak expected at the end of September.
Although Hunter's statement brought some "stability" to the market, Paul Johnson, the director of the Institute of Fiscal Economics, said in an interview with CNBC, the Truss government's previous policies had caused long-term damage to the British economy and fiscal balance.
Director of The Institute for Fiscal Studies
"There's undoubtedly a long term damage, because there's been more uncertainty created, there's lack of stability in policy. What you've seen the current chancellor do is try and re-assert that certainty and stability. And clearly the government is going all out to regain it at the moment."
Although the market is now calming down, most investors believe the future is still extremely uncertain, mainly because the future of the Truss administration is becoming increasingly uncertain.
Hunt reversed almost all of Truss' policies which led her to victory as Conservative Party leader and then as Prime Minister. Berenberg Bank called the policy reversal "a major humiliation for Truss" and said it would not be surprised if Tory MPs pressure Truss to resign in the coming days. And Citibank went even further, questioning whether the "Conservatives" are capable of navigating the current economic situation.
One focus of the current market is on how long Truss can remain in the prime minister's seat. Another focus is the medium-term fiscal plan which is to be announced on October 31. At that time, Hunt will announce more proposals on tax increases and spending cuts to ease investors' concerns about the government's liabilities in the coming years. And the Office for Budget Responsibility (OBR) forecast will take place on that day. | 2022-10-18T04:17:24Z | www.cnbc.com | CCTV Script 18/10/22 | https://www.cnbc.com/2022/10/18/cctv-script-18/10/22.html | https://www.cnbc.com/2022/10/18/cctv-script-18/10/22.html |
— This is the script of CNBC's People of the Week for China's CCTV on October 14, 2022.
[Ben S. Bernanke, Douglas W. Diamond, Philip H. Dybvig]
In this edition of People of the Week, let's first focus on the laureates of the 2022 Nobel Prize in Economics. Three scholars have been awarded the prize this year for their contributions to the study of the banking system and financial crises: Ben S. Bernanke, Douglas W. Diamond, and Philip H. Dybvig. The latter two have already been cited in macroeconomics textbooks for their research on the banking system, and have been called upon to receive the award for a long time. Bernanke, on the other hand, was both a scholar and a practitioner. Between 2006 and 2014, he served as chairman of the Federal Reserve, during which time he also experienced the 2008 global financial crisis.
Bernanke's research focused on the Great Depression of the 1930s in the United States. While he was chairman of the Federal Reserve, he maintained that in times of crisis, central banks should not hesitate to step in and inject liquidity into the financial system in a timely and adequate manner. However, Ricardo Reis, a professor at the London School of Economics and Political Science, cautioned against taking the Nobel Prize as an assessment of Bernanke's performance at the helm of the Fed. Even today, Bernanke's massive monetary easing policy back then has been criticized. It is believed that it somehow sowed the seeds of today's high inflation in the United States.
[Andrew Baile]
This year's Nobel Prize was awarded to experts who studied the financial crisis, and perhaps, we are not so far from the next crisis. The Bank of England's recent emergency bailout has been the focus of market attention. Next, let's look at the Governor of the Bank of England: Andrew Bailey.
In the last two weeks, he had to play the role of "fire-fighting team leader". UK inflation approaches double-digit levels in August. The Bank of England should have vigorously raised interest rates and tightened monetary policy; however, due to the new government's expansionary fiscal policy, which led to a plunge in the market and the loss of investor confidence, the central bank had to hold off on tapering and acquire bonds to "save the market".
Markets expect the central bank's rescue action to continue until the end of the month. However, on Tuesday, Bailey announced that the bond purchase action will end as planned on Friday.
[Jacinda Ardern]
Finally, let's turn our attention to New Zealand, which has a strong livestock industry. This week, New Zealand Prime Minister Jacinda Ardern proposed a plan to tax agricultural carbon emissions.
This would even include methane emissions from farm animals, produced by physiological behaviors such as burping and venting. This is the first system in the world to tax farm owners based on the level of gas emitted by farm animals.
In New Zealand, there are twice as many cattle as there are people and up to five times as many sheep as there are people. A developed livestock industry has made dairy products New Zealand's largest source of export revenue. However, it also means that about half of the country's greenhouse gas emissions come from farms.
Although the proposal says the levy will be used to invest in agricultural technology and innovation, it has still sparked strong opposition from New Zealand farmers. The reason is that the rising cost of fuel and other costs have made many farm operations face considerable difficulties. Federated Farmers of New Zealand's president, Andrew Hoggard, said this move would "rip the guts out of small-town New Zealand". | 2022-10-18T04:17:30Z | www.cnbc.com | CCTV Weekly Script 14/10/22 | https://www.cnbc.com/2022/10/18/cctv-weekly-script-14/10/22.html | https://www.cnbc.com/2022/10/18/cctv-weekly-script-14/10/22.html |
China very concerned about its susceptibility to external influences: Professor
In a nearly two-hour speech, Chinese President Xi Jinping outlined his vision for the country for the next five years. The Chinese leader is widely expected to cement his leadership for an unprecedented third term during the week-long meeting.
Xi Jinping has made very clear what his intentions are: he wants a private sector that is controllable, that is manageable.
Professor of International Trade & Economics, Cornell University
China doesn't have capability to reunify with Taiwan by force: Bilahari Kausikan | 2022-10-18T05:48:26Z | www.cnbc.com | China Xi warned of Taiwan interference, no quick invasion expected: analysts | https://www.cnbc.com/2022/10/18/china-xi-warned-of-taiwan-interference-no-quick-invasion-expected-analysts.html | https://www.cnbc.com/2022/10/18/china-xi-warned-of-taiwan-interference-no-quick-invasion-expected-analysts.html |
note was trading about 1 basis point lower at 4.0025% at around 4:30 am E.T. In recent weeks it has surpassed the key 4% level, which it last frequently crossed in 2008, more and more often.
Meanwhile, the yield on the 2-year Treasury
fell by less than a basis points to 4.4477%. | 2022-10-18T08:51:10Z | www.cnbc.com | 10-year Treasury yield hovers around 4% as stock markets rally | https://www.cnbc.com/2022/10/18/10-year-treasury-yield-hovers-around-4percent-as-stock-markets-rally.html | https://www.cnbc.com/2022/10/18/10-year-treasury-yield-hovers-around-4percent-as-stock-markets-rally.html |
Semafor debuts in a tough media environment, with an aim toward de-cluttering the news
Semafor is putting a new spin on the old fashioned news article, including a distinct section for reporters to share their view of the issue at hand.
Semafor, a new digital media company with a focus on global news for college educated readers, debuted Tuesday with intentions to bring transparency and clarity to a news business its co-founders believe has become too polarized.
Semafor has been preparing for its launch since January, when former New York Times
media columnist Ben Smith and former Bloomberg Media Chief Executive Officer Justin Smith quit their jobs to start the venture. Semafor.com and its mobile site will have a signature yellow background to go along with coverage in the U.S. and sub-Saharan Africa. The news company will introduce regional and national coverage in the Middle East, Asia, Europe, and other countries.
Recent sales of Axios (to Cox Enterprises), The Athletic (to The New York Times) and Politico (to Axel Springer) have given Semafor a path toward building and selling a business for hundreds of millions of dollars, though Justin Smith said he hasn't had any conversations about selling at a specific valuation with Semafor's investors. They include Sam Bankman-Fried, founder of cryptocurrency exchange FTX, and Jessica Lessin, the founder of technology news site The Information.
Still, advertising-supported digital media is a sector known for recession droughts and low growth — with plenty of cautionary tales. BuzzFeed
has seen its valuation plummet 80% since going public. Vice's attempt at going public failed as investors soured on its future prospects. It's been trying to find a buyer for several years.
Semafor will immediately stand out from legacy news publications such as The New York Times, the Wall Steet Journal or CNN.com through its unique article structure. All stories, with the possible exception of breaking news, will adhere to a "Semaform," featuring five sections: "The News," "Reporter's View," "Room for Disagreement," "The View From" and "Notable."
"We began trying to isolate individual issues, such as polarization and information overload, and untangle them," said Smith. "We went out to different segments of users with meaningful conversations, asking them about some of the ideas we'd developed. There was a real sense of frustration but also amazement that the core unit of journalism — the article — has not really involved in literally hundreds and hundreds of years."
Semafor will begin as a free, advertising-supported media site but will evolve into a paywalled subscription site in about 12 to 18 months, as it gains brand recognition, Justin Smith said. Despite launching in a time of economic uncertainty when brands are being cautious with how they spend on digital media advertising, Semafor will debut with partnerships with companies including Verizon
NYT: Facebook oversight board will determine if Trump returns
Squawk Alley | 2022-10-18T10:22:42Z | www.cnbc.com | Semafor debuts in tough media environment | https://www.cnbc.com/2022/10/18/semafor-debuts-new-media-startup.html | https://www.cnbc.com/2022/10/18/semafor-debuts-new-media-startup.html |
Wood pellet producer Enviva' s environmental attributes are being misunderstood – and that's unfairly harming its share value, Raymond James said. Analyst Pavel Molchanov upgraded the stock to strong buy from outperform while keeping its price target at $80, a 52.9% upside over last close. But he said the upgrade has nothing to do with any changes in the company's financial outlook and instead is due to what he sees as a deep misunderstanding of the company's product. The company makes wood pellets that can be burned for energy instead of coal. "For the first time in our 16 years of writing about sustainability, we are upgrading a stock ... as a direct result of the market misunderstanding the ESG attributes of the business. Nothing in this ESG-themed upgrade is directly related to our financial estimates," he said in a note to clients. "Today we are making an affirmative case for something that, to be candid, we never thought would become a point of contention: bioenergy is an environmentally and socially beneficial replacement for coal in power generation." The stock has been hurt by misconceptions, he said. That has made the entry point even more attractive as it stands to gain value with the value of wood pellets becoming increasingly understood. For instance, he made it clear that harvesting timber for use in wood pellets that can then be turned into renewable energy does not constitute deforestation. He said it is important to note that deforestation would mean trees harvested are not replanted, while Enviva does not operate any timber plants and only uses suppliers who commit to replanting. He also clarified wood pellets are cleaner-burning than coal, thus making their use better for air quality compared to coal. While he did note that it is unclear how the carbon dioxide lifespan compares, he said data clearly shows that human lives are saved when less coal is used for energy through the reduction of "smog," a term used to describe fog that comes from smoke. Molchanov pointed to wood pellets' role in Europe's clean energy transition, while calling Enviva "the world's largest player in this space." The stock is up 3.5% before the bell, but is trading down 25.7% this year. — CNBC's Michael Bloom contributed to this report. | 2022-10-18T10:57:54Z | www.cnbc.com | Shares of this bioenergy play could rally more than 50%, Raymond James says | https://www.cnbc.com/2022/10/18/shares-of-this-bioenergy-play-could-rally-more-than-50percent-raymond-james-says.html | https://www.cnbc.com/2022/10/18/shares-of-this-bioenergy-play-could-rally-more-than-50percent-raymond-james-says.html |
Some of Caraway's pots and pans are now sold by Target stores. About 350 of the big-box retailer's locations are carrying the products in time for the holidays.
Online cookware company Caraway is making its biggest push yet into brick-and-mortar stores, with its pots and pans debuting in 350 Target
stores this week.
and Allbirds
, for example, have opened stores as a way to reach new customers and become profitable. Peloton
also recently struck a deal with Dick's Sporting Goods, which plans to carry its bikes, treadmills and other products in more than 100 stores in time for the holidays.
Some retailers, such as struggling Bed Bath & Beyond
, also see popular online brands as a way to attract younger shoppers.
Since launching in November 2019, Caraway's nonstick and nontoxic cookware has gotten picked up by retailers' websites, including West Elm, Crate & Barrel, Zola and Amazon
. Target began selling the brand online last year.
The Caraway connection comes as Target, Walmart
and other retailers have noted a shift away from discretionary categories like clothing and electronics as shoppers pull back on spending because of inflation or opt to instead splurge on experiences such as traveling or dining out. | 2022-10-18T11:54:12Z | www.cnbc.com | Target to sell Caraway cookware in stores | https://www.cnbc.com/2022/10/18/caraway-cookware-plan-in-target-stores-a-big-brick-and-mortar-push-.html | https://www.cnbc.com/2022/10/18/caraway-cookware-plan-in-target-stores-a-big-brick-and-mortar-push-.html |
The earnings apocalypse: still waiting. Decent earnings reports this morning from Goldman Sachs, Johnson & Johnson, Lockheed Martin and State Street (all are trading up pre-open) are again highlighting that Wall Street has been anticipating significant cuts to fourth quarter earnings, which are still not materializing in a big way. Despite an earnings beat, Lockheed only affirmed full year guidance, and J & J narrowed the guidance. But that is a far cry from cutting their forecasts. This is precisely what happened three months ago for second quarter earnings. Then as now, traders were anticipating earnings would be slashed for the second half of the year. They were cut modestly, particularly in growth stocks, but not dramatically, and estimates for both the third and fourth quarter remained positive. The result: from mid-July to mid-August the S & P 500 rose about 500 points to 4,300, a 13% rise in one month. It's happening again, though there is no guarantee that pattern will repeat. So far, 45 companies, or 9% of the index, have now released third quarter results, and 71% have topped estimates, according to Earnings Scout. That is a bit below the three-year average, but it is not a collapse. Bottom line: The evidence so far suggests a contraction but not a bust. With Wall Street primed for a collapse in earnings, the pain trade (the trade that would cause the greatest discomfort to the greatest number of active traders) is up: that earnings do not get dramatically slashed. | 2022-10-18T13:26:12Z | www.cnbc.com | Third-quarter evidence so far suggests an earnings contraction, but not a bust | https://www.cnbc.com/2022/10/18/third-quarter-evidence-so-far-suggests-an-earnings-contraction-but-not-a-bust-.html | https://www.cnbc.com/2022/10/18/third-quarter-evidence-so-far-suggests-an-earnings-contraction-but-not-a-bust-.html |
Georgia's latest tally is also nearly as large as the state's first day of early voting in the 2020 presidential election — 136,739 in that contest versus 131,318 in the current cycle, Raffensperger's office said. Turnout tends to much higher when the presidency is on the ballot.
Raffensperger, a Republican who earned Trump's ire for challenging the ex-president's false claims that the 2020 election was unfairly rigged against him, is also running for reelection. | 2022-10-18T16:28:42Z | www.cnbc.com | Georgia breaks first-day early voting record, nearly doubles figure from last midterms | https://www.cnbc.com/2022/10/18/georgia-breaks-first-day-early-voting-record-nearly-doubles-figure-from-last-midterms.html | https://www.cnbc.com/2022/10/18/georgia-breaks-first-day-early-voting-record-nearly-doubles-figure-from-last-midterms.html |
We believe that Wall Street's muted reaction to Johnson & Johnson 's (JNJ) better-than-expected quarter has more to do with the stock's outperformance this year compared to the broader market than anything that investors heard when the results were reported before the opening bell Tuesday. The Club stock and Dow component opened slightly higher and then drifted slightly lower in the afternoon. Reported sales for the third quarter increased 1.9% year over year to $23.79 billion, exceeding the $23.34 billion consensus estimate provided by Refinitv. On an adjusted operational basis, which excludes the impact of acquisitions and divestitures and currency, sales rose 8.2%. Adjusted diluted earnings-per-share decreased 1.9% to $2.55 but still came in ahead of the $2.478 the Street was expecting. With about half of J & J's sales coming from outside the United States, it was not a surprise to see the company's Q3 sales take a big hit from the strong dollar. The American currency had a 12.6% negative impact to sales reported outside the U.S., greater than the 10.1% headwind we saw in the second quarter. Bottom line It was a solid quarter for Johnson & Johnson. While the strong dollar is and will remain a headwind for the foreseeable future, the underlying results reflect management's ability to effectively navigate the difficult macroeconomic environment. Meanwhile, the planned separation of the Consumer Health business remains on track — and as we've noted previously, in our view, it represents a positive catalyst in the year ahead, especially as the business continues to see positive operational momentum. From a financial perspective, as noted in the post-earnings conference call, J & J remains in a strong position thanks to year-to-date free cash flow of more than $13 billion and a net cash position of roughly $2 billion — that's $34 billion in cash and $32 billion debt. This strong position has allowed the company to increase research and development (R & D) spending by about 8% on a year-to-date basis versus the prior year. It also provides management the opportunity to evaluate strategic acquisitions and external collaborations while returning cash to shareholders. We also remind Club members that the board of directors previously authorized a new $5 billion share buyback program, which along with dividend payments, has resulted in the return of almost $11 billion to shareholders in 2022. Despite the positive results, the flat stock in Tuesday's trading can also be partly attributed to a slightly weaker outlook. Updated full-year earnings guidance at the midpoint, on a reported basis, of $10.05 per share implies Q4 earnings of roughly $2.24, which is below the expectations of $2.30 coming into the print. However, the reiterated full-year earnings midpoint comes despite an incremental currency headwind of 3 cents per share. Management's reluctance to pass through the full impact of the quarterly beat likely signals some conservatism given the strong dollar, continued high rates of inflation, and broader macroeconomic uncertainty. Pharmaceutical Sales in Q3 for this segment worldwide were $13.2 billion, representing an increase of 9% on an adjusted operational basis, which excludes the impact of currency translation, outpacing expectations for sales of $13.01 billion. Management said on the call they continue to see this business on track for its 11th consecutive year of above-market adjusted operational sales growth in 2022. Here's a breakdown by product line. Immunology sales increased 5.6% on an operational basis to $4.29 billion. Driving the results were increased sales of Stelara on the back of market growth and market share gains in Crohn's Disease and Ulcerative Colitis. Same story for Tremfya sales in Psoriasis and Psoriatic Arthritis. Remicade sales, on the other hand, declined as a result of competition from biosimilars, also known as generics. On an operational basis: Stelara sales grew by 8% to $2.45 billion, below expectations of $2.6 billion; and Tremfya sales increased 41.9% to $729 million, missing estimates of $749 million. Oncology sales increased 20% on an operational basis to $4.06 billion. Notably, cancer drug Darzalex sales increased with market share gains seen in all regions. The global launch of Erleada continued to be strong. Additionally, though Imbruvica remains a market leader, sales declined as a result of increased competition. On an operational basis: Darzalex sales increased 38.7% to $2.05 billion, beating estimates of $2.01 billion; sales of Imbruvica, which is jointly commercialized by J & J and fellow Club holding AbbVie (ABBV), fell 7.2% to $911 million, missing estimates of about $1.03 billion; and Erleada sales were up 51.2% to $490 million, in line with expectations. Neuroscience sales increased 5.9% on an operational basis to $1.68 billion. Infectious Diseases increased 3.8% on an operational basis to $1.3 billion. Covid vaccine sales continued to aid the segment, coming in at $489 million in the quarter. Cardiovascular, Metabolism, Other sales increased 1.4% on an operational basis to $1.03 billion. Pulmonary Hypertension sales increased 3% on an operational basis to $852 million. Looking ahead, management said that despite Stelara losing exclusivity — meaning generics will be able to come to market — they continue to anticipate sales growth in the coming years as they work toward their goal of $60 billion in Pharmaceutical sales by 2025. MedTech Worldwide sales in this segment for Q3 were $6.8 billion, representing an increase of 8.1% on an adjusted operational basis. The quarterly result was a slight miss compared to expectations for sales of $6.9 billion. On the call, management said, "Drivers for growth across MedTech include procedure recovery as well as focused commercial strategies in differentiated new products." Here's a breakdown by product line. Surgery sales increased 7.1% on an operational basis to $2.42 billion, beating estimates of $2.36 billion. Orthopedics sales increased 4.7% on an operational basis to $2.1 billion, outpacing estimates of $2.08 billion. Vision sales increased 8.6% on an operational basis to $1.21 billion, in line with expectations. Interventional solutions sales surged 17.7% on an operational basis to $1.06 billion, outpacing estimates of $1.01 billion with double-digit growth in all regions. Consumer Health Sales worldwide in this segment for Q3 were $3.8 billion, representing an increase of 4.7% on an adjusted operational basis. Expectations were for sales of $3.73 billion. Here's a breakdown by product line. OTC sales increased 7.2% on an operational basis to $1.52 billion, exceeding estimates of $1.41 billion, driven by price actions, and elevated levels of cough/cold/flu and pediatric fever rates this season, though the results were partially offset by ongoing supply constraints in the U.S. Skin health, Beauty sales advanced 5% on an operational basis to $1.13 billion, slightly missing estimates of $1.14 billion. The increase was driven by price increases, market growth, and increased international demand for Neutrogena and Aveeno on the back of new product launches. Oral Care sales fell 0.7% on an operational basis to $375 million, missing expectations of $394 million due in part to weakness in China, EMEA (Europe, the Middle East and Africa), Latin America, and the suspension of the sale of personal care products in Russia. Working to offset the weakness were price actions in the U.S. Baby Care sales increased 1.6% on an operational basis to $375 million versus the $386 million expected. Women's Health sales increased 7.9% on an operational basis to $225 million versus the $222 million expected. Wound Care, Other sales fell 2.5% on an operational basis to $176 million vs. $182 million expected. Regarding the planned spinout of the Consumer Health segment — which upon separation will be called Kenvue — management said on the call that they "made further progress" during the quarter, adding they intend to provide additional updates regarding the "the type of separation as well as standup cost estimates and how [they] are addressing stranded costs later this year or early in 2023." The separation remains on track for finalization in mid-to-late 2023. Guidance Management reaffirmed full-year expectations for 7% operational sales growth. However, they tightened the range to $97.5 billion to $98 billion versus $97.3 billion to $98.3 billion previously. On a reported basis, management reduced their sales forecast to $93 billion to $93.5 billion, down from $93.3 billion to $94.3 billion — attributing the guide to incremental foreign exchange headwinds. As a result of inflation, the company also slightly reduced its adjusted pre-tax operating margin outlook to a roughly 50 basis point decline year over year, down from approximately flat. On earnings, the company now sees adjusted operational EPS in the range of $10.70 to $10.75, representing a raise to the low end versus the prior forecasted range of $10.65 to $10.75 per share. On a reported basis, management tightened their EPS guidance range to $10.02 to $10.07 from $10 to $10.10 previously. That's unchanged at the $10.05 midpoint despite the incremental 3-cent per share foreign exchange-related headwind that we referred to earlier. (Jim Cramer's Charitable Trust is long JNJ and ABBV. 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.
Johnson & Johnson's products
Chris Hondros | Getty Images | 2022-10-18T17:03:14Z | www.cnbc.com | J&J stock dip after earnings beat reflects 2022 outperformance rather than the results | https://www.cnbc.com/2022/10/18/jj-stock-dip-after-earnings-beat-reflects-2022-outperformance-rather-than-the-results.html | https://www.cnbc.com/2022/10/18/jj-stock-dip-after-earnings-beat-reflects-2022-outperformance-rather-than-the-results.html |
An activist investor we respect has taken a notable stake in Club holding Salesforce (CRM), sending shares higher by more than 4% on Tuesday. Starboard Value LP is targeting Salesforce because it sees "significant opportunity" for further value creation, according to a presentation uploaded to the hedge fund's website. The firm, founded by Jeff Smith, lamented what it believes has been Salesforce's "subpar mix of growth and profitability" in recent years, arguing the enterprise software maker should place a greater emphasis on its bottom line now that revenue growth is maturing. "They haven't been as focused on operating margins as we think maybe they should be," Smith told CNBC's David Faber in an interview Tuesday. "This is not overly critical. I think they would say the same thing. They're moving in that direction. They're looking to grow their profit margins, as well. It's an opportunity for them." Club take We welcome Starboard's stake in CRM because of Smith's track record as an activist. He made successful bets in corporations such as Olive Garden parent Darden Restaurants (DRI) and Mellanox, which eventually was bought by Club holding Nvidia (NVDA), in 2019. Another Starboard-related name the Club may be familiar with is NortonLifeLock (NLOK), which we sold in March at around $29 per share for a 30% gain . Our favorable view of Smith does not mean we're frustrated with Salesforce's management team, including co-CEOs Bret Taylor and Marc Benioff. Rather, we're pleased with Starboard's activist campaign because its goal — creating more value through improved profitability — is good for shareholders. It's also worth noting that in recent quarters, management has made significant strides in its financial discipline, including on dilution, which has been a gripe of investors due to all the share-based acquisitions Salesforce has made through the years. Salesforce's last quarter showed that management is serious about controlling its share count, as evidenced by the newly announced $10 billion share repurchase program, the first ever in company history. Despite Tuesday's pop, we know in the near term that Salesforce shares could see more downside as investors fret about enterprise spending slowdowns in a potential recession. The strong U.S. dollar is another immediate headwind for Salesforce. Over the long term, though, we think Starboard's involvement — combined with Taylor and Benioff's acumen — will help the stock. Details on Starboard's take Salesforce has started to talk more about expanding margins in recent months, as Smith acknowledged in the CNBC interview. In fact, the keynote presentation at the company's investor day in September was called "A New Day for Profitable Growth." Salesforce said then it expects revenue to grow at a compound annual rate of 17% through fiscal 2026. Its long-term adjusted operating margin target is 25% or more. For Starboard, those targets are not ambitious enough compared to peers. Smith explained where he sees opportunity on CNBC, saying he thinks that when you add those two percentage targets together it should be around 50%. Currently, 17% revenue growth plus 25% operating margin equals 42%. "In the past, [Salesforce was] growing a little faster, but then as you get bigger and bigger, you can't keep growing as fast and you have to drop more to the bottom line," Smith said. "When you add those two things together, you get to a number. As it turns out, with their peers, the median number is around 50%, adding growth rate and profit margins. As a great company, they really should be at that number or higher, and they're not." Smith said he sees a path for Salesforce to get there through a sharpened focus on incremental margin, which in its simplest means making more money on each additional dollar of revenue. If Salesforce improves its incremental margin to be in line with peers, Smith argued, it could reach that combined 50% figure in a few years. "Shareholders would be able to make a lot of money" if that happens, Smith said. "This is attractive because they produce, or will produce, tremendous amount of free cash flow. ... For the quality of the business, for their growth opportunity of the business, for the margin opportunity of this business, this is why we get excited about it." Smith added that he's been in contact with Salesforce management since Starboard took its stake and has had "good dialogue with them." "I have a healthy respect for them. I hope they have a healthy respect for us as shareholders. If what we're looking for is what the majority of shareholders want, and it's going to create value, then hopefully we're rowing in the same direction," Smith said. (Jim Cramer's Charitable Trust is long CRM and 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.
Signage for the Salesforce West office building in San Francisco, California, U.S., on Tuesday, Feb. 23, 2021.
An activist investor we respect has taken a notable stake in Club holding Salesforce
(CRM), sending shares higher by more than 4% on Tuesday. | 2022-10-18T17:59:54Z | www.cnbc.com | An activist investor's push at Salesforce is good news for shareholders | https://www.cnbc.com/2022/10/18/an-activist-investors-push-at-salesforce-is-good-news-for-shareholders.html | https://www.cnbc.com/2022/10/18/an-activist-investors-push-at-salesforce-is-good-news-for-shareholders.html |
Mobileye's CEO Amnon Shashua poses with a Mobileye driverless vehicle at the Nasdaq Market site in New York, July 20, 2021.
's self-driving subsidiary, Mobileye, is targeting an IPO that would value it at nearly $16 billion. Intel said it expects shares to be priced between $18 and $20 per share in a filing on Tuesday. | 2022-10-18T18:00:21Z | www.cnbc.com | Intel's Mobileye targets $15.9 billion valuation in IPO | https://www.cnbc.com/2022/10/18/intels-mobileye-targets-15point9-billion-valuation-in-ipo-.html | https://www.cnbc.com/2022/10/18/intels-mobileye-targets-15point9-billion-valuation-in-ipo-.html |
Investors should be looking granularly at individual stocks to tell if they've bottomed and if it's a good time to buy, said Jenny Harrington, chief executive officer of Gilman Hill Asset Management. She said on CNBC's "Halftime Report" on Tuesday that the current moment in the market is not as bad as the 2008 recession or the worst of the Covid-19 pandemic. But she did call it "asymmetrical," as companies within industries and indexes do not move as a monolith. "A lot of people are hurting, but a lot of people are OK," Harrington said. "We need to remember there's a real mismatch out there. You've got Ark and those kind of nose-bleedy valuation stocks down 62%, S & P down 23-and-change, dividend stocks down nine. So there's a lot out there." Rather than looking at whether to believe in the current rally or not, Harrington said she looks at it as a process of bottoming that has started since June. While she does not know how long the process will take, she said it may be something that is looked back on as healthy for the market. She added the biggest impact on the market is sentiment, not inflation. Harrington said traders are worried about knee-jerk moves, but long-term investors should simply "stay the course." Harrington pointed to data storage company Seagate , which is down about 52% this year, as one that has already bottomed. She recommended investors look for stocks, rather than entire industries, that have likely hit their bottom by going through publicly disclosed documents like the Form 10-K, an annual report companies file with the Securities and Exchange Commission. "You can always find individual companies out there that have bottomed, that are the right price to buy now," she said. "I do not think you should just buy [SPDR exchange-traded funds] today. I think that you need to pick through." "You don't need to rush" to buy if the bottoming process is long, she added. "You can actually take your time as a research analyst now and do the research. Whereas for the past five years, you've had to scramble and do everything crazy quickly." | 2022-10-18T18:34:39Z | www.cnbc.com | Investors should 'pick through' for stocks that have bottomed, Gilman Hill's Jenny Harrington says | https://www.cnbc.com/2022/10/18/investors-should-pick-through-for-stocks-that-have-bottomed-gilman-hills-jenny-harrington-says.html | https://www.cnbc.com/2022/10/18/investors-should-pick-through-for-stocks-that-have-bottomed-gilman-hills-jenny-harrington-says.html |
The specific drugs that a plan covers can change from year to year, as well as their cost, which makes it worthwhile to make sure there’s not a better plan for you.
In addition to checking during Medicare's annual fall open enrollment whether there's a more cost-effective plan for you, some legislative changes take effect next year that may reduce how much you pay out of pocket for your coverage.
"It's a quality of life issue," said Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare plans. "Saving money on medications means there's more Social Security money left for other necessities in life."
Some changes to prescription drug coverage, enacted as part of the Inflation Reduction Act, take effect next year. This include a monthly $35 cap on cost-sharing for insulin under Part D, which will start on Jan. 1. (Some plans may already offer a $35 cap.)
The average premium for standard Part D coverage next year is projected to be $31.50, compared to $32.08 in 2022, according to the Center for Medicare & Medicaid Services. However, be aware that if your income is above certain limits, you will be subject to so-called income related adjustment amounts, or IRMAAs, which are in addition to any premium you pay (see chart below). Part B also comes with those extra amounts.
Getting prescription drug coverage through Medicare is optional. However, if you fail to sign up when you first qualify for coverage at age 65 and change your mind later, you'll face a life-lasting penalty unless you meet certain exclusions (i.e., you receive acceptable coverage through an employer).
Kate Dore, CFP®18 min ago | 2022-10-18T19:31:11Z | www.cnbc.com | 2023 Medicare prescription drug plans: What to know for open enrollment | https://www.cnbc.com/2022/10/18/2023-medicare-prescription-drug-plans-what-to-know-for-open-enrollment.html | https://www.cnbc.com/2022/10/18/2023-medicare-prescription-drug-plans-what-to-know-for-open-enrollment.html |
Netflix's revelation that it lost 200,000 subscribers in the first quarter put further pressure on an already beleaguered tech sector, but top tech analyst Mark Mahaney believes the current weakness in the sector presents several opportunities for investors.
reported third-quarter earnings after the bell. Here are the results.
Last quarter, Netflix addressed its slowing revenue growth, which it said was the result of competition, account sharing and other factors such as sluggish economic growth and the war in Ukraine.
"We've now had more time to understand these issues, as well as how best to address them," the company said in July.
It remains focused on content, offering big-budget films on its service rather than in theaters, and providing all episodes of new shows all at once for subscribers to binge. Although, the company will make an exception for the much anticipated sequel to Rian Johnson's "Knives Out." "Glass Onion: A Knives Out Mystery" will have limited play in theaters before its streaming debut.
Additionally, investors will be looking for updates on Netflix's paid sharing plan. This is an effort it mentioned earlier this year that would upcharge some members for sharing their subscription with family members or friends that live outside their home. The company previously said it is looking at two different approaches in test cases in Latin American that can inform a wider rollout in 2023. | 2022-10-18T20:06:00Z | www.cnbc.com | Netflix (NFLX) earnings Q3 2022 | https://www.cnbc.com/2022/10/18/netflix-nflx-earnings-q3-2022.html | https://www.cnbc.com/2022/10/18/netflix-nflx-earnings-q3-2022.html |
A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport on March 13, 2019 in Burlingame, California.
forecast another profit for the end of the year and said consumer appetite for travel is showing no signs of slowing down, despite high airfares.
Shares jumped more than 7% in afterhours trading on Tuesday.
"Looking forward through the end of the year, the airline expects the strong COVID recovery trends to continue to overcome the recessionary pressures in the macroeconomic environment," United said in an earnings release. "The airline now expects fourth quarter adjusted operating margin to be above 2019 for the first time."
Adjusting for one-time items, United's earned $2.81 per share, easily topping the $2.28 analysts polled by Refinitiv were expecting.
United said it expects adjusted earnings per share of as much as $2.25 for the fourth quarter, far ahead of analysts' estimates of 98 cents, according to Refinitiv.
The strong summer travel season and sunny outlook for the rest of the year shows consumers are willing to pay up for trips, a turnaround from early in the pandemic when Covid-19 restrictions devastated travel demand. Delta Air Lines
last week said it brought in record revenue for the third quarter and forecast another profit for the fourth quarter.
The upbeat outlooks from airline executives contrasts with other sectors that have struggled this year, including parts of the retail industry and some streaming platforms that were beneficiaries of lockdowns early in the pandemic.
Limited supplies of flights is keeping fares up. United said its third-quarter revenue per available seat mile was up more than 25% from three years earlier. For the current quarter, it expects that metric to be up by as much as that amount compared with 2019.
Meanwhile, the carrier said its fourth quarter capacity will likely be down about 10% compared with 2019, similar to its capacity in the third quarter. | 2022-10-18T21:02:53Z | www.cnbc.com | United Airlines (UAL) earnings 3Q 22 | https://www.cnbc.com/2022/10/18/united-airlines-ual-earnings-3q-22.html | https://www.cnbc.com/2022/10/18/united-airlines-ual-earnings-3q-22.html |
Shantanu Narayen, chairman and chief executive officer of Adobe Systems Inc., during a telecast of the SoftBank World event in Tokyo arranged in Kawasaki, Kanagawa Prefecture, Japan, on Thursday, Oct. 29, 2020. SoftBank World, the company's annual two-day event for customers and suppliers, ends Friday.
shares rose as much as 4% late on Tuesday after the software maker issued guidance for the next fiscal year that fell short of expectations, but blamed some of the shortfall on a stronger dollar and unfavorable foreign exchange rates.
Adobe said its estimates do factor in macroeconomic conditions, which have brought longer sales cycles for some other technology companies in the past few months, including Qualtrics
and Tenable
The design space overall has a lot of room to run, says Bessemer Venture Partners' Elliott Robinson | 2022-10-18T21:28:42Z | www.cnbc.com | Adobe jumps on 2023 guidance, strong dollar to hurt revenue growth | https://www.cnbc.com/2022/10/18/adobe-jumps-on-2023-guidance-strong-dollar-to-hurt-revenue-growth.html | https://www.cnbc.com/2022/10/18/adobe-jumps-on-2023-guidance-strong-dollar-to-hurt-revenue-growth.html |
Netflix signage next to the Nasdaq MarketSite in New York, U.S., on Friday, Jan. 21, 2022.
— The streaming giant's shares skyrocketed more than 14% after the bell Tuesday after the company reported better-than-expected earnings and revenue for the most recent quarter. It also added 2.41 million net global subscribers, which is more than twice what it projected a quarter ago.
— The medical equipment maker jumped 11% after the company reported quarterly earnings and revenue that came in slightly higher than expected, according to FactSet. It also reported growth in its da Vinci procedures of about 20% compared with the third quarter of 2021.
— The airline saw its shares move higher by more than 6% after hours following its quarterly results. Unit revenues came in 25% higher than 2019 levels. The company forecast another profit for the end of 2022 and said travel demand is growing even with higher airfares.
— Shares of Interactive Brokers added 3% after the electronic broker reported adjusted earnings for the third quarter of $1.08 per share, compared to FactSet's estimates of 96 cents per share. Adjusted revenue came in at $847 million, while FactSet estimates put it at $797.6 million.
— Shares of the transportation and logistics company gained more than 2% in extended trading following its quarterly earnings report. Earnings beat expectations by 12 cents per share, according to Refinitiv. Revenue was also higher than expected.
— Shares of the software company rose 3.2% after Adobe issued financial targets for 2023 and maintained its fourth-quarter outlook at a financial analyst meeting. | 2022-10-18T21:37:30Z | www.cnbc.com | Stocks making the biggest moves after hours: Netflix, United Airlines, Adobe and more | https://www.cnbc.com/2022/10/18/stocks-making-the-biggest-moves-after-hours-netflix-united-airlines-adobe-and-more.html | https://www.cnbc.com/2022/10/18/stocks-making-the-biggest-moves-after-hours-netflix-united-airlines-adobe-and-more.html |
: "It's too expensive. ... I think General Mills
[has] got a better pet food division."
: "I like the fertilizers. ... I say, stay long."
Fiverr International Ltd
: "It's losing money. ... I have to say, pass."
: "Right now, I've got a pause on the semis. Why? Because we've got so many problems right now in China."
Dutch Bros Inc
: "I want you to put half the position on now, and then half when it goes below $30. ... I like the stock, though."
: "I have to say no to that. ... I think that that stock is not a buy."
: "This is a very difficult business. ... I'm going to have to say, once again, [don't buy.]"
: "I like the healthcare space, I think they do quality healthcare work, and I'm going to have to say that I think it's worth buying."
: "There's been no real sign that we're going back to nuclear. ... I have to say, [don't buy]." | 2022-10-19T00:05:21Z | www.cnbc.com | Cramer's lightning round: Stay long on CF Industries | https://www.cnbc.com/2022/10/18/cramers-lightning-round-stay-long-on-cf-industries.html | https://www.cnbc.com/2022/10/18/cramers-lightning-round-stay-long-on-cf-industries.html |
Hong Kong Chief Executive John Lee speaking at a press conference before his Executive Council Meeting on October 18, 2022 in Hong Kong, China. John Lee will release his first policy address as Chief Executive. (Photo by Vernon Yuen/NurPhoto via Getty Images)
Hong Kong Chief Executive John Lee on Wednesday announced initiatives to attract talent and investment to the city.
Those who become permanent residents can apply for a refund of extra stamp duty paid on properties in the city, he said.
in Hong Kong advanced slightly in early trade before giving up those gains. Ahead of the speech, it was down more than 0.8%. It fell more than 1% during the speech. | 2022-10-19T03:42:53Z | www.cnbc.com | Hong Kong policy address: Chief executive John Lee's maiden speech | https://www.cnbc.com/2022/10/19/hong-kong-policy-address-chief-executive-john-lees-maiden-speech.html | https://www.cnbc.com/2022/10/19/hong-kong-policy-address-chief-executive-john-lees-maiden-speech.html |
Strikes in the UK have been spreading across a growing number of industries.
As the dispute between rail unions and train operating companies continues, the RMT has announced two new strike dates in October and November.
RMT (The National Union of Rail, Maritime and Transport Workers) represents 83,000 employees in Britain's major transport industries, just recently announced two new strike actions in October and November. And at the port of Liverpool, a major British port, the United Workers Union announced that 600 employees will be on a new walkout strike between October 24 and November 7. And just before that, on October 11th to 17th, they just ended the last round of strikes.
British postal service Royal Mail said in early October that it may lay off 6,000 workers and warned of major losses this year. Royal Mail blamed a number of earlier strikes, as well as a decline in parcel delivery business.
According to an indicative poll of 4,100 members in 77 sixth form colleges, 85 per cent of respondents backed strike action.
Many other industries, such as telecommunications, logistics and distribution, legal services, etc., have various strikes in progress or in the planning process. The reasons behind these strikes are all focused on wage increases that do not run up against inflation.
Francis O'Grady, general secretary of the British Trades Union Congress, recently spoke in Brighton at the annual gathering. Using official data and Bank of England forecasts for inflation and wage growth, the union estimates that since 2008, the average worker has lost £24,000 in real terms as a result of lagging pay growth, and this amount is predicted to increase by £4,000 during the next three years.
More and more employees are demanding that pay rises match inflation. Keep in mind that inflation in the UK has topped double digits since the beginning of the year. As a way of solving the inflationary pressure, the Truss government initially offered tax cuts and energy bailout programs in order to help people. However, the market criticized the policy for treating the symptoms rather than the underlying cause because of its inaction on demand and neglect of the government's debt capacity.
It is worth noting that the newly appointed Chancellor of the Exchequer Jeremy Hunt's U-turn in the government's fiscal policy did not make the unions feel optimistic. This is because, in order to ease the pressure of the government's fiscal indebtedness, Hunt said he would cut public spending and revise the Energy Bills Support Scheme (EBSS) which means that for ordinary people, the price pressure they face may continue for a longer period of time.
Jon Day
The global bond portfolio manager at Newton Investment Management
"The biggest issue the Bank of England got, and I'm still not sure that 100% aware of this is, how sticky inflation might be. So as I've seen very recently, the labor markets very, very tight wage running over 5% year on year, headline inflation, obviously 10%. But I think more importantly, for me, is what we're looking at underlying inflation, core inflation or, or services inflation." | 2022-10-19T04:39:26Z | www.cnbc.com | CCTV Script 19/10/22 | https://www.cnbc.com/2022/10/19/cctv-script-19/10/22.html | https://www.cnbc.com/2022/10/19/cctv-script-19/10/22.html |
Shares of ASML
, one of the world's most important firms in the semiconductor supply chain, jumped 6% on Wednesday after reporting strong earnings that bucked the trend of a slowdown in the chip industry.
ASML does not make chips. Instead, it sells $200 million extreme ultraviolet lithography machines to semiconductor manufacturers like Taiwan's TSMC
, which are required to make the most advanced chips. It is the only company in the world making such machines, giving it a de-facto monopoly on this part of the supply chain and making it one of the most important firms in the semiconductor industry. | 2022-10-19T10:36:14Z | www.cnbc.com | ASML Q3 earnings beat; sees limited impact on U.S. chip curbs on China | https://www.cnbc.com/2022/10/19/asml-q3-earnings-beat-sees-limited-impact-on-us-chip-curbs-on-china.html | https://www.cnbc.com/2022/10/19/asml-q3-earnings-beat-sees-limited-impact-on-us-chip-curbs-on-china.html |
Procter & Gamble is about to report earnings. Here's what to expect
Shares of Procter & Gamble have fallen 21% this year, dragging its market value down to $306.4 billion.
In late July, P&G projected that higher costs would continue to pressure its profit margins in its new fiscal year
Shoppers have been reaching for cheaper alternatives to Tide detergent and Charmin toilet paper after P&G raised prices to mitigate higher costs.
Containers of Tide detergent on grocery store shelves.
is expected to report its fiscal first-quarter earnings before the bell on Wednesday.
Earnings per share: $1.54 expected
In late July, the maker of Tide detergent, Charmin toilet paper and other consumer goods products said it expected higher costs to continue pressuring its profit margins in its new fiscal year. For its fiscal 2023, the company forecast headwinds of $3.3 billion from higher commodity and freight costs, as well as foreign exchange rates. P&G also said it expects earnings per share to be flat to up 4% from the prior fiscal year.
To mitigate rising costs, the company has been raising prices across its portfolio. But the strategy has been hurting consumer demand for its products. Shoppers have instead been reaching for cheaper alternatives as their budgets are pressured by inflation, with prices surging for everything from butter to airline tickets.
Higher prices, rather than demand, are expected to drive sales growth for P&G this year. In fiscal 2023, it expects to see organic sales growth of 3% to 5%.
Concerns about P&G's pricing power, as well as Covid lockdowns in China, have weighed on the stock. Shares of the company have fallen 21% this year, dragging its market value down to $306.4 billion. | 2022-10-19T10:44:56Z | www.cnbc.com | Procter & Gamble (PG) Q1 2023 earnings | https://www.cnbc.com/2022/10/19/procter-gamble-pg-q1-2023-earnings.html | https://www.cnbc.com/2022/10/19/procter-gamble-pg-q1-2023-earnings.html |
The Amazon logo displayed on a smartphone and a PC screen.
LONDON — Amazon
will start selling home insurance in the U.K. through partnerships with three local insurers, further expanding the e-commerce titan's push into financial services.
It marks the latest foray by Amazon into the world of finance. The company already offers lines of credit to merchants selling items on its platform. It also offers buy now, pay later loans — which allow shoppers to pay off purchases over monthly installments — in the U.S. through a partnership with fintech firm Affirm
, and in the U.K. with banking giant Barclays
. Last year, the company launched insurance for small and medium-sized business customers in the U.K. | 2022-10-19T11:19:45Z | www.cnbc.com | Amazon debuts home insurance store in the UK | https://www.cnbc.com/2022/10/19/amazon-debuts-home-insurance-store-in-the-uk.html | https://www.cnbc.com/2022/10/19/amazon-debuts-home-insurance-store-in-the-uk.html |
Russian President Vladimir Putin chairs a meeting with members of the Security Council via a video link at a residence outside Moscow, Russia, October 19, 2022.
Putin said all those regions should ensure that steps are taken to safeguard "critically important facilities" and said he had made the decision due to Kyiv's refusal to recognize the annexation of the four regions.
"Constitutional laws on the admission of four new regions into the Russian Federation have come into force. The Kyiv regime, as you know, refused to recognize the will and choice of people, rejects any proposals for negotiations. On the contrary, shelling continues. Civilians are dying," Putin said, according to comments reported by the Russian state news agency Tass.
His comments come at a pivotal moment in the conflict in Ukraine. Over the last couple of months, Ukraine's forces have made gains in the northeast and south of the country.
An attack on Russia's prized Kerch Strait Bridge linking the Russian mainland with annexed Crimea earlier this month also dealt a blow to Moscow, but it has since responded with a barrage of missile and drone attacks on various Ukrainian cities and energy infrastructure. | 2022-10-19T12:51:20Z | www.cnbc.com | Putin introduces martial law in illegally annexed Ukrainian regions | https://www.cnbc.com/2022/10/19/putin-introduces-martial-law-in-illegally-annexed-ukrainian-regions.html | https://www.cnbc.com/2022/10/19/putin-introduces-martial-law-in-illegally-annexed-ukrainian-regions.html |
Interactive Brokers Chairman Thomas Peterffy doesn't think the bottom of the market is near. The S & P 500 is already down more than 20% for the year, and Peterffy thinks it could decline another 19% from Tuesday's close to bottom around 3,000. "The market spent relatively little time at the lows, but we certainly believe that it will do so again," the market veteran told CNBC's " Squawk Box " Wednesday. Stocks have been turbulent all year. Just last Wednesday the S & P closed at 3,577.03, its lowest level since November of 2020. Last Thursday, the market had an historic turnaround with the Dow Jones Industrial Average closing up over 800 points and the S & P climbing 2.60% to 3,669.91. Peterffy believes that interest rates are likely to continue going higher and inflation won't come down as much as expected. Consumer prices increased 0.4% in September and the Federal Reserve 's preferred inflation gauge, the personal consumption expenditures price index excluding food and energy, gained 0.6% in August. Fed officials have been surprised at the pace of inflation and expect to continue raising interest rates . The 10-year Treasury yield was last at around 4.09% on Wednesday. "Both interest rates and inflation rates will settle down between 4% and 5% and we are going to go into a stagflation in the economy," Peterffy said. In this environment, a buy and hold investment strategy won't be rewarding, he said. "People better roll up their slides and begin to research and try to identify companies with great business prospects and good management," Peterffy said. "That is not going to be so simple." That said, his 3,000 bottom also depends on what happens between now and then. "We want to leave the door open to change our views," he said. | 2022-10-19T14:22:33Z | www.cnbc.com | Interactive Brokers' Thomas Peterffy sees the S&P 500 dropping nearly 20% from here | https://www.cnbc.com/2022/10/19/interactive-brokers-thomas-peterffy-sees-the-sp-500-dropping-nearly-20percent-from-here.html | https://www.cnbc.com/2022/10/19/interactive-brokers-thomas-peterffy-sees-the-sp-500-dropping-nearly-20percent-from-here.html |
Citing unnamed sources, the Journal reported that Japan's government has signaled it would welcome the Apple
supplier to build beyond its initial manufacturing plant in the country, though no decisions have yet been made. The factory currently under construction in Japan is meant to focus on less-advanced chips used in automobiles, for example, but additional capacity could focus on more-advanced technology, the Journal reported.
Chipmaking nations such as the U.S. are teaming up against China | 2022-10-19T15:10:25Z | www.cnbc.com | Apple chipmaker TSMC considers expansion in Japan amid China tension: report | https://www.cnbc.com/2022/10/19/apple-chipmaker-tsmc-considers-expansion-in-japan-amid-china-tension-report.html | https://www.cnbc.com/2022/10/19/apple-chipmaker-tsmc-considers-expansion-in-japan-amid-china-tension-report.html |
People who received Pfizer and Moderna as their primary series can also receive Novavax as their third shot.
A healthcare worker prepares a dose of the Novavax Covid-19 vaccine at a pharmacy in Schwenksville, Pennsylvania, US, on Monday, Aug. 1, 2022.
The FDA authorized Novavax's two-dose primary series over the summer in the hope that people who are skeptical of Pfizer's and Moderna's shots would be more willing to get immunized with the Novavax
version. People ages 12 and older are eligible for Novavax's primary series, while people 18 and over can now get its booster shot.
By comparison, some 372.5 million Pfizer
shots, 235.8 million Moderna
doses and 18.9 million Johnson & Johnson
shots have been administered across the U.S. so far. | 2022-10-19T15:19:20Z | www.cnbc.com | FDA authorizes Novavax's Covid shots as mix-and-match booster to Pfizer or Moderna | https://www.cnbc.com/2022/10/19/fda-authorizes-novavaxs-covid-shots-as-mix-and-match-booster-to-pfizer-or-moderna.html | https://www.cnbc.com/2022/10/19/fda-authorizes-novavaxs-covid-shots-as-mix-and-match-booster-to-pfizer-or-moderna.html |
Piper Sandler called D-Wave Quantum a unrivaled leader in quantum computing that is poised to thrive in what will likely become a multibillion dollar market. Analyst Harsh Kumar initiated the stock at overweight with a price target of $12, which would provide an upside of just under 130% over its last closing price. D-Wave's big-name partners, which include Deloitte, Volkswagen, Johnson & Johnson and Lockheed Martin , and its focus on a process called annealing will make the stock stand out in the growing industry, Kumar said. "The company is a leader in quantum computing and specializes specifically within annealing quantum computers," he said in a note to clients. Annealing is a process that optimizes commercial applications. Employee scheduling, autonomous vehicle routing and patient trials are all processes listed by Kumar that could be streamlined by annealing. Kumar said D-Wave Quantum is one of a few revenue-producing companies with a quantum computer, and is able to capitalize in ways that computers used in academic settings are not. However, he did note some countries have quantum computing programs and there are other companies looking to get into annealing. Kumar also pointed to data showing more than 80% of companies have quantum in mind within the next three years, with nearly 40% experimenting with the technology today, to illustrate corporate interest in D-Wave's business. Read more The perils and promise of quantum computing are nearing. Here are ways to invest He also expressed optimism about where the company was growing, saying it is likely the only company of its size that has in-house programming tools for quantum. It is also developing a computer used for nonoptimization purposes to expand offerings beyond its three current computers. The near-term market is about $2 billion to $5 billion, with one-third being specifically focused on annealing, according to the company. To be sure, Kumar said the stock is one to watch for long-term gains as opposed to short-term, with the company expected to report negative earnings for the next few years. He expects profitability and cash flow by 2025, with the exact timeline being impacted by how long it takes to scale and expand its commercial consumer base. Shares are down 47.7% so far this year. — CNBC's Michael Bloom contributed to this report. | 2022-10-19T15:19:51Z | www.cnbc.com | This little-known quantum computing stock can more than double, Piper Sandler says | https://www.cnbc.com/2022/10/19/this-little-known-quantum-computing-stock-can-more-than-double-piper-sandler-says.html | https://www.cnbc.com/2022/10/19/this-little-known-quantum-computing-stock-can-more-than-double-piper-sandler-says.html |
Former U.S. President Donald Trump speaks at the Conservative Political Action Conference (CPAC) held at the Hilton Anatole on August 06, 2022 in Dallas, Texas. CPAC began in 1974, and is a conference that brings together and hosts conservative organizations, activists, and world leaders in discussing current events and future political agendas. | 2022-10-19T15:54:02Z | www.cnbc.com | Trump being deposed in rape defamation lawsuit by E. Jean Carroll | https://www.cnbc.com/2022/10/19/trump-being-deposed-in-rape-defamation-lawsuit-by-e-jean-carroll.html | https://www.cnbc.com/2022/10/19/trump-being-deposed-in-rape-defamation-lawsuit-by-e-jean-carroll.html |
DETROIT – The Biden administration's elimination of tax credits for imported electric vehicles deals a massive blow to Hyundai Motor's
business, an executive for the automaker said Wednesday.
Jose Munoz, global president and chief operating officer, declined to disclose a specific financial impact associated with the requirements of the Inflation Reduction Act, but described it as a huge impact to the automaker's bottom line. Hyundai and others are lobbying for some of those requirements to be reversed.
Hyundai and other non-domestic automakers have been vocal opponents of the new electric vehicle tax credit regulations under the Inflation Reduction Act. The law, passed by Congress in August, immediately eliminated a tax credit of up to $7,500 for plug-in hybrid and electric vehicles that are imported and sold in the U.S.
Hyundai, including Kia, has quickly become the second best-selling automaker of EVs in the U.S., representing 8.1% of the market through the third quarter, according to Motor Intelligence data. It trails only well-established leader Tesla
, which continues to command roughly 67% of new EVs sold.
Jose Munoz, chief performance officer of Nissan Motor Co., speaks during the 2018 North American International Auto Show (NAIAS) in Detroit, Michigan, Jan. 15, 2018.
Hyundai is based in South Korea, where the automaker produces a majority of its vehicles, including all of its all-electric vehicles.
The longtime auto executive also alluded to the idea that the U.S. could be violating, in some form, its free-trade agreement with South Korea as a result of the law.
Bloomberg News on Tuesday reported Hyundai and the South Korean government are ratcheting up lobbying to loosen restrictions of the EV tax credits. | 2022-10-19T16:50:40Z | www.cnbc.com | Hyundai: Biden's EV tax credit rules deal 'astronomical' blow to business | https://www.cnbc.com/2022/10/19/hyundai-bidens-ev-tax-credit-rules-deal-astronomical-blow-to-business.html | https://www.cnbc.com/2022/10/19/hyundai-bidens-ev-tax-credit-rules-deal-astronomical-blow-to-business.html |
The news comes at a hugely turbulent time for the UK government, with Prime Minister Liz Truss under intense pressure to resign just two months into her premiership.
Suella Braverman, UK home secretary, arriving at 10 Downing Street to attend a Cabinet meeting discussing the u-turn on the energy crisis, after Kwasi Kwarteng was sacked and replaced by Jeremy Hunt in London, United Kingdom on October 18, 2022.
In a resignation letter posted to Twitter, Braverman said: "It is with the greatest regret that I am choosing to tender my resignation."
She said that she had realized her mistake and reported it to official channels, but that resigning was the right thing to do.
Braverman ran against Truss for the Conservative leadership race this summer but was knocked out in an early stage. She has held past roles as Attorney General, from 2020 to 2022, and in the 'Brexit' department in 2018.
In her short time as Home Secretary, beginning with the Truss government on Sept. 6, she has made headlines for outspoken comments on reducing net migration, affirming the controversial policy of deporting asylum seekers to Rwanda, and just this morning defending the government's Public Order Bill.
On Friday, Truss fired her Finance Minister Kwasi Kwarteng over the incident, despite having campaigned on the program of tax cuts which set off the chaos.
Kwarteng was replaced by former health secretary Jeremy Hunt, who on Monday proceeded to reverse the majority of the economic policies laid out in the government's mini-budget announced on Sept. 23. Brought in in a bid to calm markets and project an image of stability, Hunt has provoked rumor of being more in control of government than Truss and even a potential successor.
New UK finance minister gets rid of most of government's new economic plan
Referring to the wider government, Braverman added in her letter that it was "obvious to everyone that we are going through a tumultuous time" and said she had "concerns about the direction of this government."
She said she was concerned about the breaking of key pledges to voters, though did not specifically highlight the recent U-turn on fiscal policy, instead citing pledges to reduce overall migration numbers and small boat crossings to the UK. Truss and Braverman had been reportedly clashing behind the scenes on revising UK migration policy as the nation faces acute worker shortages.
Various media reports, including from Sky News, say Braverman is set to be replaced by former transport secretary Grant Shapps.
Shapps was not initially given a so-called 'front bench' role by Truss. He was also among the Conservative voices who criticized elements of her tax cut program, saying that the removal of the top rate of income tax had "jarred for people in a way which was unsustainable." | 2022-10-19T16:51:17Z | www.cnbc.com | UK's Suella Braverman resigns as interior minister after 43 days | https://www.cnbc.com/2022/10/19/uks-suella-braverman-to-reportedly-leave-role-as-interior-minister-.html | https://www.cnbc.com/2022/10/19/uks-suella-braverman-to-reportedly-leave-role-as-interior-minister-.html |
Procter & Gamble (PG) reported strong fiscal first-quarter earnings on Wednesday, but lowered its sales guidance as the strong U.S. dollar and inflation are forecast to remain a drag on overall results. Heading into an increasingly difficult cost environment, management maintained its forecast for earnings per share for its fiscal 2023 of flat to up 4% versus last year, warning it could be on the low end of that range. This is inline with expectations coming into the print for earnings to increase 0.3%. The consumer products giant reported net sales of $20.61 billion, a 7% organic gain over last year (versus a 5.2% estimate) and above the $20.28 billion expected. Earnings per share of $1.57 adjusted, above the consensus estimate of $1.54 per share. Bottom line We were encouraged to see that despite the difficult operating backdrop of high input costs, geopolitical issues and an increased foreign exchange headwind, Procter & Gamble was able to grow organic sales across all categories. More importantly, it maintained its global market share, accelerated productivity savings and improved supply chain efficiencies. On the earnings call with investors, management characterized this challenging period as "a rough patch to grow through, not a reason to reduce investment in the long-term health of the business." In other words, the company remains focused on the bigger picture. At the end of the day, the thing for Club members to keep in mind is this: Procter & Gamble has proven that thanks to innovation, their products have pricing power. While the full impact of that pricing isn't seen right now due to increased input costs and a material foreign exchange headwind, these costs will eventually come down. However, while the input costs will come down — and Procter & Gamble will have a good deal of negotiating power with suppliers thanks to its scale — the selling prices of these products will not come down, or at least not nearly as quickly as the input costs. As a result, profit margins should re-expand, causing today's headwinds to be turn into tomorrow's tailwinds. One reason we aren't seeing the costs come down now despite notable declines in many commodities is that Procter & Gamble buys a bit lower down the supply chain. For example, management reminded analysts that the company doesn't actually purchase raw materials like propylene or ethylene, but rather purchases packaging materials. Put another way, it will take a bit longer for the commodity price declines to trickle down into Procter & Gamble's costs. Until then, we are happy to keep collecting the almost 3% dividend, which is compounded by the share repurchase program. However, given the increased currency headwind and prolonged margin pressure resulting from higher input costs, we are revising our price target down to $160 from $165. We maintain our 1 rating on PG shares, meaning we would buy at current prices. Companywide results Pricing power was key this quarter as the operating environment remains plagued by elevated commodity, material, and freight costs. The company is doing a solid job managing costs. Gross margin contracted by 160 basis points (bps) versus the prior year, but a 90 bps cut to selling, general and administrative (SG & A) expenses as a percentage of sales resulted in the operating margin contracting by only 70 bps. On a currency-neutral basis, the operating margin expanded 10 bps annually. Operating cash flow of $4.1 billion came up short versus the $5.9 billion consensus, while adjusted free cash flow productivity, defined as the ratio of adjusted free cash flow to net earnings, came in at 86% for the quarter. On the call, management reported some growth in private label (store brands), which management sees as one proxy for trade downs (consumers shifting to lower-cost products). In the U.S. and Europe, the team has seen a 30 bps increase and 20 bps increase, respectively, over the past three to six months. That's pretty minimal and one way management has been able to maintain overall market share is by factoring trade-down expectations into the product portfolio "by design," with different package sizes. Procter & Gamble highlighted its vertical portfolio as a way to address the two ways it see buyers reacting to inflation. On the one hand, there is a group of consumers factoring in the per-unit cost of goods and opting for increased transaction sizes to reduce the per-unit cost, or buying in bulk. And on the other hand, there is the consumer more concerned with the cash outlay. Management is seeking to address both groups by providing options that fit both consumer preferences. Management, in other words, is focused on value, which is found with the right combination of price, performance and usage experience. This focus on providing the best value for both of those types of consumer is what allows the team to maintain market share while raising prices to protect profits. Lastly, management returned nearly $6.3 billion in cash to shareholders via dividends and buybacks. Segment performance Beauty sales of $3.96 billion, up 4% year over year on an organic basis (in line with expectations), was slightly short of the $3.98 billion consensus. Skin and personal care segment saw a mid-single-digit increase in organic sales on the back of "innovation-driven volume growth" and higher prices. Hair care sales were also up mid-single digits organically as higher pricing was partially offset by lower volumes related to market contraction. Grooming sales of $1.63 billion, an increase of 5% organic year over year (versus a 4% estimate), missed expectations of $1.65 billion. Management said growth in blades and razors was partially offset by a decline in appliances, due in large part to market contraction. Health-care sales of $2.78 billion, an increase of 8% organic over the prior year (versus a 9% estimate), was in line with expectations. The segment benefited from a low-single-digit increase in oral care products thanks to price increases and a positive product mix that was partially offset by lower volumes due to market contraction. Personal health-care sales grew in the high-teens percent, with organic growth seen in all regions, thanks to higher prices, a favorable product mix, and volume growth "driven by a stronger cough, cold and flu season." Fabric and home care sales of $7.08 billion, up 8% organic (versus a 6% estimate), was shy of the $7.13 billion expected. Fabric care organic sales were up high-single digits as price increases were partially offset by volume declines "due to market contraction and market share softness, primarily in Europe." Home care posted a high-single-digit increase in organic sales, with organic growth seen in all regions, thanks to higher prices that were partially offset by "volume declines versus a high base period of increased consumption of cleaning products." Baby, feminine and family care sales of $4.93 billion, up 6% organic (versus a 4% estimate), exceeded the $4.85 billion consensus. Baby care sales increased mid-single digits organically thanks to higher prices that were partially offset by lower volumes that were partly attributable to portfolio reduction in Russia. Feminine care organic sales were up double digits, with growth in all regions, driven by price increases and a positive geographic mix. Offsetting this was volume declines due to portfolio reduction in Russia. Family care organic sales were up low-single digits thanks to higher prices. However, the gains were partially offset by lower market volumes and soft market share. Guidance Management lowered its fiscal year 2023 sales guidance, now expecting sales to fall 1% to 3% versus 2022, versus flat to up 2% previously forecast. This is below the 0.5% decline the Street was expecting coming into the print. However, after accounting for a 6% foreign exchange headwind, up from 3% previously expected, management's organic growth forecast remains unchanged at up 3% to 5%, in line with expectations at the midpoint. Incorporated into the company's reaffirmed EPS guidance are expectations for a $1.3 billion after-tax foreign exchange headwind, a $2.4 billion hit due to higher commodity and material costs, and a $200 million blow due to higher freight costs (though that's less than the $300 million previously expected). Adding that up, management is factoring in a $3.9 billion, or $1.57 per share, after-tax headwind. This compares to prior guidance calling for a total headwind of $3.3 billion, or $1.33 per share, with the $600 million delta primarily driven by foreign exchange. The team continues to expect adjusted free cash flow productivity of 90% and to pay around $9 billion in dividends, and to repurchase $6 billion to $8 billion of common shares in the fiscal year. (Jim Cramer's Charitable Trust is long PG. 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.
View of Dawn dish soap liquid at Stop & Shop Supermarket.
Ron Adar | LightRocket | Getty Images
(PG) reported strong fiscal first-quarter earnings on Wednesday, but lowered its sales guidance as the strong U.S. dollar and inflation are forecast to remain a drag on overall results. | 2022-10-19T18:22:11Z | www.cnbc.com | PG gets a price target trim, but is set to grow as inflation cools | https://www.cnbc.com/2022/10/19/pg-gets-a-price-target-trim-but-is-set-to-grow-as-inflation-cools.html | https://www.cnbc.com/2022/10/19/pg-gets-a-price-target-trim-but-is-set-to-grow-as-inflation-cools.html |
Supreme Court nominee and U.S. Court of Appeals Judge Amy Coney Barrett on Capitol Hill in Washington, October 21, 2020.
The Brown County Taxpayers Association, a taxpayers' group in Wisconsin, directed its request at Justice Amy Coney Barrett, who is responsible for such requests in Wisconsin.
The emergency filing from the association asks that President Joe Biden's plan to cancel up to $20,000 in student debt for millions of borrowers be suspended while its lawsuit unfolds. The Biden administration could start processing borrowers' requests for student loan forgiveness as soon as this Sunday. | 2022-10-19T18:56:49Z | www.cnbc.com | Supreme Court asked to block Biden student debt relief program | https://www.cnbc.com/2022/10/19/supreme-court-asked-to-block-bidens-student-loan-forgiveness-plan.html | https://www.cnbc.com/2022/10/19/supreme-court-asked-to-block-bidens-student-loan-forgiveness-plan.html |
The classic diversified portfolio of 60% stocks and 40% bonds is having a terrible year. The 60/40 strategy, known as a balanced portfolio, has been hit by rising bond yields — which means falling fixed income prices, as well as a sinking stock market. The portfolio's annualized decline of 32% for 2022, as of Oct. 18, is the worst in the past 100 years, according to Bank of America. Yet, amid that devastation there may be an opportunity for long-term investors. "The future is brighter for the 60/40," said Omar Aguilar, CEO and chief investment officer of Schwab Asset Management. "When we compare the opportunities we see in a 60/40 today to what we had in the middle of the pandemic, clearly there are more opportunities now than back then," he added. One measure of the portfolio's performance is the iShares Core Growth Allocation ETF , which has a target fixed allocation of 60/40. The ETF is down more than 19% this year, as of Tuesday's close. The reason for Aguilar's optimism is his expectation that there will be a decoupling of stocks and bonds, whose prices have been falling. Typically, these two asset classes have an inverse relationship. "The correlation will come back to the normal levels, or the historical levels that you normally have between equities and fixed income," Aguilar said. "We hope this will be a result of yields stabilizing and getting to the terminal rate, which hopefully will happen by the first part of 2023." For Bank of America Global Research's chief investment strategist Michael Hartnett, "long 60/40" is one of the most contrarian trades at the 2023 lows, thanks to its performance, past history and anticipated volatility ahead. "If in 2023 either the inflation becomes more accepted, anticipated and/or it drops because of the unemployment rate, then you have a case for saying actually maybe the Fed can ease up — who knows, maybe even cut rates over the following 12 months," Hartnett said. "If that is the case, then just as everyone is abandoning 60/40, the great contrarian trade next year would be 60/40," he said. Harnett isn't advocating a massive outperformance of the 60/40 portfolio and is not convinced the stock market has made its ultimate low yet, or that bond yields have reached their peak. However, when that turning point occurs, he advises selling the dollar and buying the 30-year Treasury . In equities, he would buy small cap, cyclicals, value, European and emerging markets. "You are long the new leadership," he said. Schwab's Aguilar advises not chasing yields in fixed income, but instead maintaining a balanced approach between credit and duration. He also believes valuation in stocks is starting to become attractive. Thinking outside 60/40 There are also those who aren't necessarily buying back into the 60/40 strategy. Michael Dow, chief investment officer at Beacon Pointe Advisors, shifted to a 55% stocks, 25% fixed income and 15% alternative investments split — and he's not looking back. He's overweight value stocks. His alternative investments are primarily in private equity, private credit and private real estate, as well as in real assets and hedge funds. In fixed income, the firm currently has a bond duration of four years, down from its previous seven-year duration. However, it is contemplating shifting back to around six years in anticipation of a recession. He suggests not straying too far from your strategic allocations. "Volatility is the price you pay for building wealth," Dow said. 'Once in a generation opportunity' Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, fashions her clients' portfolios based on their needs and risk profiles, and has recently been making some changes. After moving into alternatives and convertible securities from bonds in the summer of 2020, she is now shifting back into bonds. However, she's sticking with short-duration assets in corporate, municipal and Treasury bonds and laddering them. A bond ladder involves purchasing issues with different maturities and then reinvesting the proceeds as near-dated bonds mature. By doing this, you're spreading interest rate risk. "Our duration is two to three years. You will have the ability to generate a decent yield … but you will mitigate risk so you are laddering your holdings," Tengler said. "The best thing to do in this environment is to ladder because you don't know how far the Fed is going to go." While she's not predicting a bottom in equities, she doesn't think investors should sit on the sidelines. "This is a once in a generation opportunity to buy really high quality companies at reasonable multiples," Tengler said. "You have to be willing to step in against the sentiment," she added. "Three years from now, will I be happy I bought at this time? Yes, absolutely." She likes names including Lululemon , Home Depot , McDonald's and Chipotle . In tech, her picks include Adobe , Amazon , ServiceNow , Palo Alto Networks , Microsoft , Broadcom and Texas Instruments . — CNBC's Michael Bloom contributed reporting. | 2022-10-19T19:49:28Z | www.cnbc.com | The 60/40 portfolio has been suffering all year, but there are opportunities for long-term investors | https://www.cnbc.com/2022/10/19/the-60/40-portfolio-has-been-suffering-all-year-but-there-are-opportunities-for-long-term-investors.html | https://www.cnbc.com/2022/10/19/the-60/40-portfolio-has-been-suffering-all-year-but-there-are-opportunities-for-long-term-investors.html |
IBM CEO Arvind Krishna speaks at an IBM facility in Poughkeepsie, New York, on Oct. 6, 2022. IBM announced $20 billion in investments during President Biden's visit that will go toward research and development and the manufacturing of semiconductors, mainframe technology, artificial intelligence and quantum computing in the Hudson Valley.
shares rose as much as 6% in extended trading on Wednesday after the technology conglomerate surpassed analysts' estimates for the third quarter and lifted its growth projection for the full year.
"With our year-to-date performance, we now expect full-year revenue growth above our mid-single digit model," CEO Arvind Krishna said in the statement." In July the company said it had expected growth at the high end of the model.
Consulting revenue came to $4.70 billion, which was up 5.5% and above the StreetAccount consensus of $4.51 billion. Pre-tax margins in the consulting unit narrowed to 9.8% from 10.5%.
Longer sale cycles for cloud software companies have investors feeling hesitant | 2022-10-19T20:28:12Z | www.cnbc.com | IBM earnings Q3 2022 | https://www.cnbc.com/2022/10/19/ibm-earnings-q3-2022.html | https://www.cnbc.com/2022/10/19/ibm-earnings-q3-2022.html |
John Eastman, the University of Colorado Boulders visiting scholar of conservative thought and policy, speaks about his plans to sue the university at a news conference outside of CU Boulder on Thursday, April 29, 2021.
They messages "are sufficiently related to and in furtherance of a conspiracy to defraud the United States," the judge ruled.
The select committee in January 2022 issued a subpoena seeking messages sent from Eastman's Chapman email account between late 2020 and early 2021. Eastman, who had previously declined to produce documents to the Jan. 6 investigators, promptly asked the Santa Ana federal court to block Chapman from complying with the committee's subpoena for his emails. | 2022-10-19T20:28:15Z | www.cnbc.com | John Eastman ordered to give more emails to Jan. 6 Capitol riot probe | https://www.cnbc.com/2022/10/19/john-eastman-ordered-to-give-more-emails-to-jan-6-capitol-riot-probe.html | https://www.cnbc.com/2022/10/19/john-eastman-ordered-to-give-more-emails-to-jan-6-capitol-riot-probe.html |
How to access American Express Centurion Lounges, which feature curated menus, craft cocktails and other luxe perks
How to get into Amex Centurion Lounges, plus the cards to consider adding if you want to visit one.
Speakeasy located in the American Express Centurion Lounge in JFK.
American Express, as well as other card issuers such as Capital One and Chase, are upping the ante when it comes to enhancing your airport experience and providing exclusive lounge access — and all the benefits that come with it — to cardholders.
Centurion® Lounges are known the world over for their luxe amenities, with complimentary perks such as high-speed Wi-Fi, access to The Centurion® Lounge Digital Library, a Member Services team to assist you with all your travel needs, shower suites (temporarily closed due to the pandemic), spa services, semi-private work stations, relaxation rooms and a robust menu of gourmet seasonal food and craft cocktails curated by popular local chefs.
There's just one thing: You'll only be able to enter if you have an active membership with certain American Express cards — in particular, The Platinum Card® from American Express, The Business Platinum Card® from American Express, the Centurion® Card from American Express, the Delta SkyMiles® Reserve American Express Card and the Delta SkyMiles® Reserve Business Card — or you're visiting as a guest of a current cardmember.
Below, Select details what it takes to access American Express Centurion® Lounges — or any of Amex's worldwide partner lounges — and which cards to consider adding if you want to visit one on your next trip.
American Express Centurion Lounge locations
With three more Centurion Lounges expected to open in Atlanta (ATL), Newark (EWR) and Washington, D.C. (DCA) in 2023, there will soon be a total of 16 U.S. locations.
These three new locations are expected to open in late 2022 or in 2023:
Ronald Reagan Washington National Airport, near Terminal B, post-security; Opening late 2022.
Hartsfield–Jackson Atlanta International Airport, in Concourse E between the domestic and international terminals; Opening 2023.
Newark Liberty International Airport, on the third floor of the new Terminal A building; Opening 2023.
Here's where to find current Centurion Lounges within the U.S.:
Charlotte Douglas International Airport, Between Concourses D and E; Open daily from 5:30 a.m. to 9 p.m.
Dallas-Fort Worth International Airport, Terminal D across from Gate D12; Open daily from 5:30 a.m. to 9 p.m.
Denver International Airport, Concourse C (post-security), near gate C46; Open daily from 5 a.m. to 9 p.m.
Houston - George Bush Intercontinental Airport, Terminal D, take the elevator from the Duty-Free Shop near Gate D6; Open daily from 6 a.m. to 8 p.m.
Las Vegas - Harry Reid International Airport, Concourse D, across from Gate D1; Open daily from 5 a.m. to 9 p.m.
Los Angeles International Airport, Tom Bradley International Terminal (TBIT), on the left after security; Open daily from 6 a.m. to 7:30 p.m.
Miami International Airport, Concourse D, on the fourth floor near Gate D12; Open daily from 5 a.m. to 10 p.m.
New York City - LaGuardia Airport, Terminal B (post-security) on the fourth floor just before the pedestrian bridge; Open 5 a.m. to 9 p.m. Sunday to Friday, and 5 a.m. to 8 p.m. Saturday.
New York City - John F. Kennedy International Airport, Terminal 4, just past security, to the left of the escalators; Open daily from 6 a.m. to 9 p.m.
Philadelphia International Airport, Terminal A West near Gate A14; Open daily from 5:30 a.m. to 9 p.m.
Phoenix Sky Harbor International Airport, Terminal 4 across from Gate B22; Open daily from 7 a.m. to 8 p.m.
San Francisco International Airport, Terminal 3 next to Gates F1 and F2; Open daily from 6 a.m. to 7 p.m. (temporarily closed for renovations but expected to reopen in late 2022).
Seattle-Tacoma International Airport, Concourse B across from Gate B3; Open daily from 7 a.m. to 7 p.m.
Additional Centurion Lounges can be found internationally in Hong Kong (HKG), London (LHR), Stockholm (ARN), Mumbai (BOM), Delhi (DEL), Buenos Aires (EZE), São Paulo (GRU), Melbourne (MEL), Mexico City (MEX), Monterrey (MTY) and Sydney (SYD).
American Express Centurion Lounge at Hong Kong international airport on September 29, 2017.
Billy H.c. Kwok | Getty Images Entertainment | Getty Images
American Express is also in the process of revitalizing some of its current Escape Lounges into a new concept it's calling "Escape Lounges — The Centurion Studio Partner," which will serve as mini-Centurion Lounges. Keep an eye out for these on your next trip to Fort Lauderdale (FLL) or Columbus (CMH), as both are expected to open later in 2022.
Whichever lounge you choose, you can expect to find a range of complimentary perks including seasonal food and beverage options curated by popular local chefs, signature craft cocktails, high-speed Wi-Fi, semi-private workspaces, access to The Centurion Lounge Digital Library, access to a Member Services travel concierge team, luxury amenities such as spa services and shower suites (temporarily closed due to the pandemic) and little touches like family rooms and customized relaxation spaces.
An attendee samples food inside the American Express Centurion Lounge during a media preview event at Los Angeles International Airport (LAX) on March 5, 2020.
How to access Amex Centurion Lounges
To enter any Centurion Lounge, you'll need to have a boarding pass reflecting a flight you'll be traveling on that day — it's not possible to access these lounges after you land, only before you fly or during a layover, if you have a connecting flight. You must also be able to produce a valid government-issued photo I.D. and the eligible card that's associated with your membership (unless you are a guest of a current cardholder).
Children ages two and under get in free with a qualifying parent who can show a "lap infant" boarding pass or proof of their child's age.
You'll only be allowed to enter the lounge within three hours of your flight's departure and cannot reserve a spot ahead of time — entry will be based on capacity and access to some amenities based on availability. You also won't be allowed in if you have a standby ticket, unless you can show you have a boarding pass showing a confirmed seat or assigned zone.
Free or discounted access
Travelers with The Platinum Card® from American Express, The Business Platinum Card® from American Express or the Centurion® Card from American Express receive complimentary access to any outpost within the Centurion Lounge network.
Earn 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com and 1X points for each dollar you spend on eligible purchases. Also, earn 1.5X points (that's an extra half point per dollar) on eligible purchases at US construction material & hardware suppliers, electronic goods retailers and software & cloud system providers, and shipping providers, as well as on purchases of $5,000 or more everywhere else, on up to $2 million of these purchases per calendar year.
Earn 120,000 Membership Rewards® points after you spend $15,000 on eligible purchases within the first 3 months of card membership
Those with the Delta SkyMiles® Reserve American Express Card or the Delta SkyMiles® Reserve Business Card are only permitted to enter Centurion Lounges within the U.S., in London (LHR) and in Hong Kong (HKG) — and only if they're traveling on a same-day flight that's operated or marketed by Delta Air Lines.
Amex Platinum cardholders have access to more than 1,400 lounges
Amex Platinum and Business Platinum cardholders can also score complimentary access to The Global Lounge Collection®, which includes Centurion Lounges, Escape Lounges – The Centurion Studio Partner, Delta Sky Club® lounges, Plaza Premium Lounges, Priority Pass™ lounges, Airspace Lounges and Lufthansa Lounges, giving you access to more than 1,400 airport lounges in over 650 cities worldwide.
Note, however, that the rules vary by lounge when it comes to how many guests you're allowed to take with you and whether or not their entry is also complimentary. Additionally, to access Delta Sky Club's, you'll have to be traveling on a same-day flight that is being operated or marketed by Delta Air Lines.
Paid access
Due to the exclusivity of these lounges, you won't be able to enter unless you are a qualifying cardholder (see above) or a guest of one (see below).
Amex Platinum and Centurion cardholders can currently bring up to two additional guests free of charge. However, starting Feb. 1, 2023 Amex Platinum and Business Platinum cardholders will have to pay $50 per guest ($30 per child ages 2–17), although you can qualify for two complimentary guest passes per visit after you spend at least $75,000 on your card within a calendar year. Once earned, that complimentary guest access will be valid through January of the second calendar year (if you earned it by May 1, 2023, it would be active through January 31, 2025).
Those with a Delta SkyMiles Reserve card can bring up to two guests per visit by paying a fee of $50 per person per visit as long as you're all traveling on a same-day flight that is being operated or marketed by Delta Air Lines — but remember, you're limited to Centurion Lounges within the U.S. or the two international locations in London and Hong Kong.
Best American Express cards with lounge access
Here's a look at the various American Express cards that will gain you access to the Centurion Lounge network, as well as their current welcome bonuses:
The Platinum Card® from American Express: Earn 100,000 bonus points after spending $6,000 within the first six months of account opening.
The Business Platinum Card® from American Express: Earn 120,000 bonus points after spending $15,000 within the first three months of account opening.
Centurion® Card from American Express: This "Black Card" is available via invitation only, though you may be able to request a membership consideration.
Delta SkyMiles® Reserve American Express Card: Earn 95,000 bonus miles after spending $6,000 within the first six months of account opening. Offer ends Nov. 9, 2022.
Delta SkyMiles® Reserve Business Card: Earn 100,000 bonus miles after spending $6,000 within the first three months of account opening (this limited time offer expires Nov. 9, 2022; otherwise, earn 60,000 bonus miles after meeting the spending requirements).
Centurion Lounges are known for their luxury amenities and exclusive access, which you can score by signing up for certain eligible cards. With more locations popping up in cities all over the U.S. and around the world, now might be a good time to take advantage of a lucrative welcome bonus so you can make your next airport experience a relaxing and memorable one.
These credit cards offer lounge access and credits for expedited airport security
Here are the best 8 credit cards with welcome bonus offers of 100,000 points or more | 2022-10-19T20:28:16Z | www.cnbc.com | How to Access American Express Centurion Lounges | https://www.cnbc.com/select/how-to-access-american-express-centurion-lounges/ | https://www.cnbc.com/select/how-to-access-american-express-centurion-lounges/ |
— Shares dropped 3.7% after the electric vehicle maker reported third-quarter revenue that missed analyst expectations. Tesla reported earnings of $1.05 per share, compared to expectations of 99 cents adjusted earnings per share, according to analysts surveyed by Refinitiv. Revenue came in at $21.45 billion, less than the $21.96 billion expected.
— Shares jumped 3.9% after IBM beat analyst expectations in its third-quarter earnings results, and raised its full-year growth outlook. The tech company reported adjusted earnings of $1.81 per share, greater than the $1.77 per share expected by analysts, according to Refinitiv. Revenue came in at $14.11 billion, or more than the forecasted $13.51 billion.
— The stock rose 2.1% after the semiconductor company surpassed profit and sales expectations in its most recent quarter. Lam Research reported adjusted earnings of $10.42 per share on revenue of $5.07 billion. Analysts expected earnings of $9.54 per share on revenue of $4.91 billion, according to Refinitiv.
— Shares fell 1.8% after the oil and gas pipeline operator reported third-quarter earnings results that fell short of earnings per share expectations, according to consensus estimates on FactSet. Kinder Morgan otherwise beat on revenue forecasts.
— Shares dropped 6.9% after the aluminum producer reported a miss on third-quarter results, and lowered its 2022 shipment projections for alumina and bauxite. Alcoa reported a loss of 33 cents per share, compared to expectations of a gain of 8 cents per share, according to consensus estimates on FactSet. The company reported revenue of $2.85 billion, compared to expectations of $2.96 billion. | 2022-10-19T21:20:58Z | www.cnbc.com | Stocks making the biggest moves after hours: Tesla, IBM, Alcoa and more | https://www.cnbc.com/2022/10/19/stocks-making-the-biggest-moves-after-hours-tesla-ibm-alcoa-and-more.html | https://www.cnbc.com/2022/10/19/stocks-making-the-biggest-moves-after-hours-tesla-ibm-alcoa-and-more.html |
: "It is a high-risk stock. I prefer to have something that is certainly a little bit more ... known and already doing incredibly well, which is Halliburton
: "I think it's an inexpensive stock. I think Coach is good. I'd like for them to come on the show. I think that it's a good idea."
: "I don't like Carnival, I prefer Norwegian Cruise
. Better balance sheet, and I think that it's going to do better."
: "I'd much rather have you be in Procter & Gamble
: "As a long term position — that is really the operative term, because short-term, they keep doing things wrong."
: "My favorite [energy stock] right now is Pioneer
Quantumscape Corp
: "It's losing a lot of money ... and we do not recommend stocks that are losing a lot of money." | 2022-10-19T23:30:58Z | www.cnbc.com | Cramer's lightning round: I like Procter & Gamble over Kimberly-Clark | https://www.cnbc.com/2022/10/19/cramers-lightning-round-i-like-procter-gamble-over-kimberly-clark.html | https://www.cnbc.com/2022/10/19/cramers-lightning-round-i-like-procter-gamble-over-kimberly-clark.html |
But when asked on Tesla's
third-quarter earnings call on Wednesday how his electric car company will fare in a potential recession, the world's wealthiest person expressed little concern.
The Tesla CEO also commented on his pending $44 billion acquisition of Twitter
. He's currently enmeshed in a legal battle with the social media company even though he recently changed course and said he would follow through with his purchase agreement. | 2022-10-19T23:31:01Z | www.cnbc.com | Elon Musk says Tesla is 'pedal to the metal' even in recession | https://www.cnbc.com/2022/10/19/elon-musk-says-tesla-is-pedal-to-the-metal-even-in-recession.html | https://www.cnbc.com/2022/10/19/elon-musk-says-tesla-is-pedal-to-the-metal-even-in-recession.html |
Semiconductor stocks have been beaten down all year — thanks to waning chip demand and the easing of supply chain disruptions that hobbled the sector at the peak of the Covid pandemic. The iShares Semiconductor ETF is down around 44% year-to-date — a bloodbath even by this year's bear market standard. But the massive sell-off in chip stocks this year is also an opportunity for bargain hunters, particularly those with a long-term view on the importance of chips to secular trends such as 5G, electrification and artificial intelligence. Hedge fund manager David Neuhauser said he believes Intel now looks "really inviting," with the company having lost a significant chunk of its market value so far this year. The founder and chief investment officer of Livermore Partners said on CNBC's " Street Signs Asia " on Monday that Intel has "a lot of value" and looks "really attractive" with its share price down 50% from its high. Moreover, the company pays a dividend yield of more than 5%, so investors are "getting paid to wait" while the share price recovers, he added. "It's also a company with a very strong U.S. footprint and beyond. So, if there was one stock I would look at, it would be Intel today," Neuhauser said. But investors hoping for a quick recovery in Intel's share price will be disappointed, he said. He urged investors to take a longer-term view on their investment given the ongoing geopolitical tensions around the world. "If your time frame is like a decade from here, obviously, there's some great things you can buy as an investor and as we described, things like Intel or even Nvidia down where they are, but if you are really thinking about this over the next say six months or one year time horizon, I think without the dividend yield, it's going to be tough to think that you're going to make a dramatic return on your investment today," Neuhauser said. Longer-term challenges The beleaguered sector had a reprieve from the Chips and Science Act — a bill that includes more than $52 billion in funding for U.S. chipmakers, as well as billions more in tax credits to encourage investment in semiconductor manufacturing. But a slew of new export controls introduced earlier this month aimed at cutting China off from obtaining or manufacturing key chips and components for supercomputers sent shares of chip makers tumbling once more. Against the backdrop of these macro headwinds and intensifying competition in the sector, chip companies are looking to bolster their position. U.S. chipmaker Broadcom , for instance, is reportedly seeking early European Union antitrust approval for its proposed $61 billion purchase of cloud computing company VMware , according to media reports. If completed, the deal, announced in May, will be one of the largest technology acquisitions of all time . "I think the news you're seeing in the sector is something that is going to be very onerous for the most part because you're seeing this export ban. And ultimately, that's going to cause a retrenchment of a lot of these companies in terms of their revenue guidance, margins, and the likes," Neuhauser said. "It's going to be tough going forward and if things exist in their current format, you can start to see further consolidation occur where companies try to further margins through scale, more buyouts such as the VMware acquisition is something that's still out there. That's a very meaningful deal and I think you can see more of those to come in the months and years ahead," he added. | 2022-10-20T01:02:23Z | www.cnbc.com | Buying the dip: Fund manager names the chip stock he likes | https://www.cnbc.com/2022/10/20/buying-the-dip-fund-manager-names-the-chip-stock-he-likes.html | https://www.cnbc.com/2022/10/20/buying-the-dip-fund-manager-names-the-chip-stock-he-likes.html |
The consumer price index in the UK returned to double-digit levels in September. Food prices are the major contributor. UK food prices rose by a whopping 14.6% year-on-year, which is the biggest increase in 40 years.
After the inflation data came out, the pound fell in response.
It's worth noting that soaring food and energy prices put different inflation pressures on poor and wealthy households. According to the Institute for Fiscal Studies, the lowest-income tenth of the population experienced inflation of 12 percent while the richest tenth experienced inflation of 9 percent.
In addition, a new report from consulting firm McKinsey shows that high inflation has forced British consumers to adjust their Christmas shopping plans: 58 percent of respondents said they were likely to cut their Christmas spending, while 8 percent said they would not shop at all.
The September Consumer Price Index has long served as an important reference for the annual pension increase in April. Jeremy Hunt, the new Chancellor of the Exchequer, declined to confirm Wednesday whether pensions and benefits will be increased in line with inflation.
Sir Steve Webb, a former pensions minister stated that new pensioners could miss out on £442 per year in income if the state pension is increased in line with earnings next April instead of with inflation.
Investors predict that inflation in the UK will increase further. If the current price cap on energy bills, set by the government, expires at the end of March next year, the inflation rate may rise to 11% in April next year.
The Bank of England is widely expected to increase interest rates by 75 basis points in early November in light of the current rate of inflation, which is more than five times the Bank's 2% inflation target. Nevertheless, some investors have also pointed out that the BoE will also need to examine the direction of fiscal policy in the next few weeks. The next rate hike will not only be determined by this inflation data.
Small businesses in the United Kingdom are particularly hard hit by the high inflation. Nearly half of the companies surveyed by the Federation of Small Businesses reported a decline in revenues in the third quarter, and less than a third reported an increase. In light of the increasing economic pressures, more than 40 percent of companies anticipate revenue declines in the coming quarter.
The survey was conducted between Sept. 20 and Oct. 4, covering the period when Prime Minister Truss released his fiscal plan on Sept. 23 and triggered market turmoil. | 2022-10-20T03:30:17Z | www.cnbc.com | CCTV Script 20/10/22 | https://www.cnbc.com/2022/10/20/cctv-script-20/10/22.html | https://www.cnbc.com/2022/10/20/cctv-script-20/10/22.html |
JP10Y-JP
weakened past 150 against the U.S. dollar, a key psychological level, reaching levels not seen since August 1990.
On Thursday, Japan's 10-year government debt yields
breached the 0.25% ceiling that the central bank vowed to defend – last standing at 0.252%. The yield on the 20-year bond also rose to its highest since September 2015. | 2022-10-20T08:04:23Z | www.cnbc.com | Japanese yen hits 150 against the U.S. dollar | https://www.cnbc.com/2022/10/20/japanese-yen-hits-150-against-the-us-dollar.html | https://www.cnbc.com/2022/10/20/japanese-yen-hits-150-against-the-us-dollar.html |
All-America Economic Survey
Steve Liesman@steveliesman
President Biden's overall approval rating improved 10 points from the July survey with 46% approving and 50% disapproving. Approval of Biden's handling of the economy also rose 10 points, with 40% approving and 56% disapproving. While they were the president's best numbers since 2021, the improvement came largely from increased Democratic support. Approval by independents on the economy remained unchanged from the prior poll at just 25%.
Republicans have a two-point advantage, 48%-46%, on party preference to control congress. That's a tossup with the poll's +/-3.5% margin for error, but Democrats have typically had substantial leads in this question when they have picked up Congressional seats. The gap is the same as the prior survey, which came in at 44%-42%.
Republicans have a double-digit lead on the questions of which party would do a better job bringing down inflation, handling taxes, dealing with deficits, and creating jobs. CNBC's Democratic and Republican pollsters agree the economic numbers look similar to 2014 when the GOP retained the House and took control of the Senate.
Specifically, on the issue of which party is best to control inflation, Republicans have a 15-point lead, 42-27%; they lead 40-29% on dealing with taxes; 36% to 25% on reducing the deficit; and 43 -33% on creating jobs. Democrats have a 4-point lead, 42% to 38%, on "looking out for the middle class," but that's down from a 12-point margin they enjoyed in 2018. They have a commanding 44-28% margin on which party is best to reduce health care cost.
"The way things are moving overall and the way things look, it's definitely more of an uphill climb for Democrats and maybe slightly slanted downwards for Republicans,'' said Jay Campbell, partner at Hart Associates.
Just 32% believe their home price will increase in the next year, the lowest level since the pandemic began; 23% believe their home price will decline in the next year, the highest level since 2011.
68% think the US will soon be in recession, including 9% who believe we are already in a recession.
Inflation ranks as the No. 1 concern for all Americans combine, but there are substantial differences by party. "Threats to democracy" is the No. 1 issues for Democrats, and "immigration and border security" is tops for Republicans, a point ahead of inflation. For independents, inflation is the leading concern and little else registers. Crime is the No. 3 issue for GOP voters, while abortion and climate change are tied for third among Democrats. For the moment, the war in Ukraine and jobs and unemployment are not seen as top issues by either party or independents.
A 53% majority say the Fed's efforts to reduce inflation by raising interest rates will succeed. But when asked what's more important when it comes to the Fed's dual mandate — jobs or inflation — Americans are split. 47% say it's more important to protect jobs than fight inflation and 43% say the fight inflation should take precedence.
More In All-America Economic Survey
Biden’s economic approval rating falls to new low on fear about inflation, CNBC survey finds
Steve Liesman | 2022-10-20T11:07:23Z | www.cnbc.com | GOP holds big leads on key economic issues ahead of the November elections, CNBC survey shows | https://www.cnbc.com/2022/10/20/gop-holds-big-leads-on-key-economic-issues-ahead-of-the-november-elections-cnbc-survey-shows.html | https://www.cnbc.com/2022/10/20/gop-holds-big-leads-on-key-economic-issues-ahead-of-the-november-elections-cnbc-survey-shows.html |
American said it expects the strength to continue through the end of the holiday season.
An American Airlines Boeing 787-9 Dreamliner approaches for a landing at the Miami International Airport on December 10, 2021 in Miami, Florida.
reported a $483 million profit for the third quarter and joined rivals in forecasting resilient travel demand, as the airline industry continues to shrug off concerns about an economic slowdown.
Shares were up more than 2% in premarket trading after the report.
Rivals United Airlines
and Delta Air Lines
also predicted that they would be profitable through the end of the year thanks to strong bookings and fares.
The Fort Worth, Texas-based airline said its costs per available seat mile will likely rise 8% to 10% over the same quarter of 2019 and, for the full year, as much as 13% over three years ago.
American executives will hold a call with analysts to discuss results at 8:30 a.m., when they will likely face questions about booking forecasts for 2023, business travel demand and labor negotiations. | 2022-10-20T11:42:00Z | www.cnbc.com | American Airlines (AAL) 3Q 2022 | https://www.cnbc.com/2022/10/20/american-airlines-aal-3q-2022.html | https://www.cnbc.com/2022/10/20/american-airlines-aal-3q-2022.html |
Kevin Durant #7 of the Brooklyn Nets dribbles during the first half against the Cleveland Cavaliers at Barclays Center on May 16, 2021 in the Brooklyn borough of New York City.
The NBA All-Star and his business partner Rich Kleiman announced Thursday that their firm, 35 Ventures, has purchased Major League Pickleball's newest expansion team.
35 Ventures has investments in more than 75 companies, including many in sports and media. The company said it plans to handle everything from player relations, marketing, sponsorships and merchandise. It will also use its media network, The Boardroom, to talk about the team and league.
The new partnership also will have a community component. Similar to his work with 35 Venture's "Build It and They Will Ball" initiative, which has refurbished basketball courts globally, Durant plans to bring pickleball to underserved communities.
Pickleball has seen investment on and off the court as its popularity has surged. In 2021, 4.8 million people played the sport in the U.S., according to a 2022 report by the Sports & Fitness Industry Association.
How pickleball is taking over America | 2022-10-20T11:42:01Z | www.cnbc.com | Kevin Durant is latest athlete to buy into Major League Pickleball | https://www.cnbc.com/2022/10/20/kevin-durant-is-latest-athlete-to-buy-into-major-league-pickleball.html | https://www.cnbc.com/2022/10/20/kevin-durant-is-latest-athlete-to-buy-into-major-league-pickleball.html |
Turkey's President Recep Tayyip Erdogan attends a press conference after his meeting with Venezuelan President in Ankara on June 8, 2022.
Turkey's central bank slashed its key interest rate by 150 basis points for the third consecutive month of cuts on Thursday, from 12% to 10.5%.
The country's monetary policy, directed by Turkish President Recep Tayyip Erdogan, is based on a pursuit of growth and export competition rather than calming inflation. Erdogan vocally espouses the unorthodox belief that raising interest rates increase inflation, rather than the other way around, and has called the raising of rates "the mother of all evil." | 2022-10-20T11:42:04Z | www.cnbc.com | Turkey slashes interest rates by 150 basis points despite inflation at 83% | https://www.cnbc.com/2022/10/20/turkey-slashes-interest-rates-by-150-basis-points-despite-inflation-at-83percent.html | https://www.cnbc.com/2022/10/20/turkey-slashes-interest-rates-by-150-basis-points-despite-inflation-at-83percent.html |
Truss has been in office for just 44 days, on 10 of which government business was paused following the death of Queen Elizabeth II.
was up 0.4% on the day against the dollar
shortly after the announcement, trading at $1.1273, briefly touching a session high. It remains at the level it was on Sept. 22, before Truss' market-moving budget. The yields on 10-year and five-year gilts (U.K. sovereign bonds) we both down by around 5 basis points after Truss' brief speech. | 2022-10-20T13:14:02Z | www.cnbc.com | UK Prime Minister Liz Truss resigns after failed budget and market turmoil | https://www.cnbc.com/2022/10/20/uk-prime-minister-liz-truss-resigns-after-failed-budget-and-market-turmoil.html | https://www.cnbc.com/2022/10/20/uk-prime-minister-liz-truss-resigns-after-failed-budget-and-market-turmoil.html |
Real estate broker Rebecca Van Camp places a "Sold" placard on her sign in front of a home in Meridian, Idaho, on Wednesday, Oct. 21, 2020.
That marked the eighth straight month of sales declines. Sales were lower by 23.8% year-over-year.
"Despite weaker sales, multiple offers are still occurring with more than a quarter of homes selling above list price due to limited inventory," said Lawrence Yun, chief economist of the NAR. "The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today."
Tight supply continues to put pressure on home prices. The median price of an existing home sold in September was $384,800, an increase of 8.4% September 2021. Prices climbed at all price points. This makes 127 consecutive months of annual increases.
They're falling harder this year, though, particularly on the lower end of the market, where inventory is much leaner. Homes priced between $100,000 and $250,000 fell 28.4% from a year ago, while sales of homes priced between $750,000 and $1 million dropped 9.5%. | 2022-10-20T14:10:05Z | www.cnbc.com | Existing home sales fall to a 10-year low in September | https://www.cnbc.com/2022/10/20/existing-home-sales-fall-to-a-10-year-low-in-september.html | https://www.cnbc.com/2022/10/20/existing-home-sales-fall-to-a-10-year-low-in-september.html |
Still waiting for a dramatic earnings decline, but what if it happened? Approaching 20% of the S & P 500 reporting, and so far companies are not slashing estimates. Third-quarter blended earnings for the S & P 500 are still at 3.0%, slightly higher than a few days earlier, while fourth-quarter estimates are at 4.7%, only slightly below the 5.8% expected on Oct. 1. The reason everyone is expecting an earnings apocalypse is that the Street is disappointed that inflation is not coming down fast enough, so everyone believes the Fed will continue to raise rates into 2023, which will result in an inevitable recession. Traders are well aware that recessions invariably result in a decline in earnings. How much earnings decline depends on the extent of the recession, but certainly 20%+ is normal, as DataTrek has noted: Earnings in economic downturns (S & P 500, peak to trough earnings) Q2 1989-Q4 1991 - 24.4% Q3 2000-Q4 2001 - 31.6% Q2 2007-Q3 2009 - 56.7% Q4 2019-Q4 2020 - 22.1% Source: DataTrek The takeaway: Earnings downturns of 20% or more are common in downturns, and, rarely, 50% (the Global Financial Crisis of 2008-2009 was a whopper). Two points: 1) earnings today have not only not fallen 20%, they aren't even negative year over year, and 2) even if a decline did happen, earnings declines don't last long. That is, they tend to bounce back quickly after a recession. That's why the S & P 500 recovers. Declines of 20% or more in the S & P are fairly uncommon: the S & P 500 has declined 20% or more only 10 times since 1950. Truist co-chief investment officer Keith Lerner notes that of those 10 declines, in seven out of 10 the S & P was higher one year later, by an average of 15%. Bottom line: Not only is there no evidence of an imminent earnings armageddon, long-term investors shouldn't be overly concerned even if there is one. | 2022-10-20T14:10:11Z | www.cnbc.com | Few signs that the stock market faces an imminent earnings armageddon | https://www.cnbc.com/2022/10/20/few-signs-that-the-stock-market-faces-an-imminent-earnings-armageddon-.html | https://www.cnbc.com/2022/10/20/few-signs-that-the-stock-market-faces-an-imminent-earnings-armageddon-.html |
The good news is that the standard monthly premium for Medicare Part B, which covers outpatient and medical coverage, is set to go down by 3% next year, to $164.90 from the current rate of $170.10. Because those premiums are typically deducted directly from benefit checks, a lower rate will make it possible for more beneficiaries will see the bump from the cost-of-living adjustment, or COLA.
That is calculated by taking your adjusted gross income and adding non-taxable interest and half of your Social Security benefits.
IRS raises income threshold and standard deduction for all tax brackets
Don't wait to see your CPA by April 15; it's too late.
Brian Vosberg
president of Vosberg Wealth
To be sure, the results will vary based on an individual's or couple's unique financial situation.
Beneficiaries who have the choice of where to withdraw their supplemental income should re-evaluate that choice every year to get the best tax results, Elsasser said.
If you're have money saved both in retirement and other accounts, you may be able to come up with an estimate using tax software and varying the amount of IRA withdrawals, Elsasser said.
To minimize your tax bite, try taking withdrawals from non-taxable income sources, like Roth individual retirement accounts, Vosberg said. | 2022-10-20T14:10:29Z | www.cnbc.com | What 8.7% Social Security COLA for 2023 means for taxes on benefits | https://www.cnbc.com/2022/10/20/what-8point7percent-social-security-cola-for-2023-means-for-taxes-on-benefits.html | https://www.cnbc.com/2022/10/20/what-8point7percent-social-security-cola-for-2023-means-for-taxes-on-benefits.html |
Wall Street's turbulent year has afforded investors plenty of opportunities to buy stocks on a pullback. The question, though: When is the right time to pull the trigger? The answer is nuanced, depending on the circumstances surrounding the stock and one's personal investment goals. However, for us at the Club, there are a few things we keep in mind whenever we're looking to be opportunistic into weakness. We'll offer our thoughts on how to approach three different types of stocks: a winner, an out-of-favor decliner and a new position. No matter which bucket the stock falls into, when buying a stock on a pullback, you have to make sure the long-term thesis remains intact or there's a clear catalyst ahead to get it back on track. And if a stock is declining because something is seriously wrong with the company's underlying fundamentals, it's likely too risky to step in — no matter the price. In some cases, if you already own the troubled stock, it might be best to exit the position all together . When the stock has been a winner Let's say you're looking to own more shares of a company in your portfolio that's recently been a standout performer. We'll use Club holding Humana (HUM) as an example. Shares of the health insurer have solidly outperformed the S & P 500 this year, and we've got a nice paper profit on our position, which we initiated April 19 . The average cost basis for our 100-share position sits at $443.03 apiece. Now, the stock is off its all-time high of $514.98 on Sept. 20, and we remain believers in the company in a market that requires defensive positioning. Humana is making progress on its $1 billion value creation program, while also making smart investments to reinvigorate growth in Medicare Advantage. While our Humana thesis hasn't been shaken, that doesn't mean we're really getting an opportunity to buy more shares. Yes, the stock has pulled back from its highs, but the decline is less than 5%. We think a move of that magnitude, in a volatile market replete with selling pressure, hardly qualifies as a pullback for a stock that's been such an outperformer. We'd need to see more downside before we'd consider Humana a pullback worth buying. This is especially true given our cost basis — our cash could do more work for us in other areas. In fact, last week we booked some profits in Humana with the stock near its all-time highs because we wanted to have more cash on hand to potentially be strategic buyers in more beaten-down names. While it's always important to avoid getting greedy , it's especially true in a market like this. When the stock has been beaten down This year hasn't been kind to many stocks, especially for growth-oriented companies in the technology sector. It's not just speculative, money-losing names, either. The selling has extended to plenty of profitable companies that may be weathering some near-term slowdowns to their business, even though secular tailwinds like cloud adoption remain at their back. In instances like this, when the market seems set on taking a stock down, it's important to recognize we can't predict the exact bottom. Humility is an important part of investing. It's impossible to know when a bottom is actually made until it's in the past. The same goes for spotting tops. We don't want to be too aggressive when sentiment isn't going our way for a stock like Salesforce (CRM). A strategy called "wide scales" can be used to minimize risk. When you identify the level where you want to step in and capitalize on the pullback, putting the "wide scales" strategy into practice would mean only buying a partial amount of total shares you want to add — and then waiting; if your goal is to end up with 60 more shares, you might only buy 15 shares to start. If the stock falls another, say, 5% from the level at which you bought those 15 shares, you could pull the trigger and buy 20 more. This not only improves your cost basis, but ensures you still have available cash to deploy if the market creates an even more attractive opportunity in the future. Then, if the stock declines another 5% or so, you can step in to buy 25 shares, bringing your total addition to 60, in a disciplined way. Our recent buys of Salesforce shares offer an illustration of the wide-scales strategy. We bought 50 shares at $152.89 on Sept. 6 . Then, on Sept. 26, with the stock down another 4% from the Sept. 6 level, we added 25 more shares. Central to the wide-scales approach is a recognition that we will not be able to always time the bottom. Its benefits include offering protection if the stock keeps sliding — you'll be glad you didn't buy 60 shares all at once if the stock promptly tumbles 10%. It also ensures you maintain flexibility to benefit from those more attractive lower levels, instead of making three separate purchases of a security at roughly the same price. For stocks in which its dividend payment is a meaningful reason for owning it, there is a slight variation to the wide-scales approach. Instead of using percentage declines in stock price to determine when to step in, we may focus on its yield. Hypothetically, we may look to buy the pullback in a stock when its yield becomes, say, 3.5%, then wait until it reaches 3.75% or 4% before making an additional buy. More generally, it's important to note that we're not going to keep buying something endlessly just because it's going lower, even if we strongly feel the market is getting it wrong. We're keeping an eye on how big the position is relative to the rest of the portfolio and whether buying more would make it too large. We're also taking steps to ensure we don't buy simply because we think "enough is enough" on the way down. When it's a new stock in your portfolio Let's say you just added a brand-new stock to your portfolio. You did your homework on the company and concluded its future prospects appear brighter than its current market value suggests, so you start a small position that you plan to build up over time. But when do you make that next purchase, and possibly the one after that? Answering those questions requires an acknowledgment that your first buy is unlikely to be made at the best-possible purchase price in a volatile market. There's nothing wrong with that fact, but it's a key backdrop to this scenario. For this reason, we rarely want our initial buy to be excessively aggressive — like scooping up 250 shares of a company that takes its weighting in our portfolio up to 4% right away. Instead, we might opt for a smaller, but not immaterial, weighting of 0.75%. This way if the stock promptly starts to go higher, we own enough stock to reap some reward. But we've also left ourselves ample cash to grow the position should we soon get better prices. As much as we might like the stock for long-term fundamental reasons, sometimes the volatile day-to-day nature of the market has other plans. Our recent actions with Starbucks (SBUX) offer a look at approaching pullbacks in your newest stocks. We started a stake in Starbucks in late August, beginning with a weighting of 0.75% in the coffee giant. Our first Starbucks purchase , on Aug. 22, was for 275 shares at roughly $85 apiece. A week later, we added 150 more shares at an average of $83.97 each, down a little over 1% from our initial buy, on Aug. 22. In the Humana example we discussed earlier, a decline of that magnitude isn't what we'd consider a "buyable pullback." It's a different story, though, when you're working on building up a fresh position; it can be a bit more shallow and still be worth taking advantage. In this instance, it helped us improve our cost basis and establish a more formidable position in SBUX. Our third Starbucks purchase came a day later, on Aug. 30, at a level slightly below where we picked up our second tranche. We added 100 shares, at roughly $83.44 apiece, giving Starbucks a roughly 1.5% weighting in the portfolio. We followed up in the following days with two smaller purchases — 75 shares in each, around the $84 level — that helped us scale deeper into the position. Then we paused and haven't bought another tranche since that second buy, on Sept. 6. To understand why we haven't, consider the stock has not closed below $84 since then, while registering multiple closes north of $90. On the one hand, our decision to buy Starbucks ahead of its pivotal investor day, held on Sept. 13, proved wise because the market has responded well to the company's transformation plan. We figured it'd be well-received, and wanted to start our position before it took place and shares ran away from us. On the other hand, despite our long-term enthusiasm for SBUX, the stock's post-investor day move has required us to be patient. And in an environment this volatile, patience is paramount. We don't want to chase a stock on its way up because we know a better price may arrive in the future. We also want to be mindful about clustering too many buys around the same level, knowing we don't have unlimited cash and want to ensure what we have available is deployed to have the maximum impact. Bottom line Turbulent markets can — and do — create opportunities to invest in quality companies at attractive prices. While it's important to not buy simply because you've had enough of a stock's decline, there are disciplined approaches to take that ensure your money is being put to work in the most strategic way. It's not always the right time to start stepping in, but once you've determined that it is, discipline always trumps conviction. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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.
Trader on the floor of the NYSE Aug. 30, 2022.
Wall Street's turbulent year has afforded investors plenty of opportunities to buy stocks on a pullback. The question, though: When is the right time to pull the trigger? | 2022-10-20T15:41:43Z | www.cnbc.com | Our guide to buying stocks on a pullback in a volatile market | https://www.cnbc.com/2022/10/20/our-guide-to-buying-stocks-on-a-pullback-in-a-volatile-market-.html | https://www.cnbc.com/2022/10/20/our-guide-to-buying-stocks-on-a-pullback-in-a-volatile-market-.html |
The ADL complied a list of what it deemed harmful recent comments by Ye.
"At a time of rising antisemitism, when incidents in the U.S. reached an all-time high in 2021, such statements are more than damning – they are dangerous.... We hope that more companies, individuals, and political leaders will take action to show that there will be consequences for such hateful rhetoric and that they do not give Ye's antisemitism a pass," the statement says.
"Ten years ago, Adidas was struggling in the U.S., the largest sportswear market. Thanks, in part, to Yeezy, its U.S. business has rebounded," Swartz said. "It has helped bring its North America business back to relevance and it has made Adidas relevant in the collectors' market and probably allows it to reach a demo that it has missed." | 2022-10-20T17:12:50Z | www.cnbc.com | Anti-Defamation League to Adidas: Sever ties with Ye's Yeezy | https://www.cnbc.com/2022/10/20/anti-defamation-league-to-adidas-sever-ties-with-kanye-wests-yeezy.html | https://www.cnbc.com/2022/10/20/anti-defamation-league-to-adidas-sever-ties-with-kanye-wests-yeezy.html |
Greenlight Capital's David Einhorn, who is crushing the market with double-digit returns this year, is selling stocks as the Federal Reserve continues to deflate the market with aggressive rate hikes. "As long as official policy is to make the stock market go down, so that people are less wealthy, so that they buy fewer things, so that prices stop going up, all while doing nothing about fiscal policy, we believe the correct posture is to be bearish on stocks and bullish on inflation," Einhorn said in an investor letter obtained by CNBC. The star hedge fund manager said the Fed has opted to combat inflation by decreasing demand instead of increasing supply, resulting in lower income and wealth. However, higher interest rates also discourage investments and in turn crunch supply, which is most evident in the housing market. "The most glaring area might be in housing, where higher rates lead to reduced supply despite widespread shortage," Einhorn said. "All told, this policy might make inflation worse rather than better." The Fed is tightening monetary policy at its most aggressive pace since the 1980s. The central bank in September raised rates by three-quarters of a percentage point for a third straight time, vowing more hikes to come. In light of Einhorn's bearish view on the markets, he has reduced his gross long exposure substantially this year and he expects to have additional dry powder after exiting his short-term Twitter investment, Einhorn said in the letter. Einhorn is in the middle of a stellar year with his hedge fund returning 4% in the third quarter of 2022, bringing its performance for the first nine months to 17.7%, according to the letter. That compares with a 23.9% decline for the S & P 500 during the same period as the benchmark tumbled into a bear market. The manager revealed that he exited a slew of long positions last quarter — Atlas Air Worldwide Holdings , Change Healthcare, Chemours , International Seaways , the Playboy Group and Warner Bros. Discovery — in some cases at a loss. Additionally, Einhorn kept his bet in gold despite the risk for more weakness in the near term. "Sometimes in a bear market, investors simply want cash. Further, high short-term interest rates provide competition for gold," Einhorn said. "Nonetheless, we remain concerned that the current inflation problem could evolve into a currency and/or sovereign debt crisis." — CNBC's Michael Bloom contributed reporting. | 2022-10-20T17:12:56Z | www.cnbc.com | David Einhorn, whose hedge fund is up 18% this year, is bearish on the market | https://www.cnbc.com/2022/10/20/david-einhorn-whose-hedge-fund-is-up-18percent-this-year-is-bearish-on-the-market.html | https://www.cnbc.com/2022/10/20/david-einhorn-whose-hedge-fund-is-up-18percent-this-year-is-bearish-on-the-market.html |
Dina Powell, former deputy U.S. national security advisor, speaks during the Saudi-U.S. CEO Forum in New York, U.S., on Tuesday, March 27, 2018.
executive Dina Powell McCormick has been named chair of the Robin Hood Foundation, a nonprofit backed by Wall Street executives and other business leaders that aims to combat poverty. | 2022-10-20T18:44:21Z | www.cnbc.com | Robin Hood Foundation picks Goldman Sachs executive Dina Powell McCormick as new chair | https://www.cnbc.com/2022/10/20/robin-hood-foundation-picks-goldman-sachs-executive-dina-powell-mccormick-as-new-chair.html | https://www.cnbc.com/2022/10/20/robin-hood-foundation-picks-goldman-sachs-executive-dina-powell-mccormick-as-new-chair.html |
Just like their longer duration brethren, the yields on short-term Treasury bills have been ripping higher. The yield on the 3-month Treasury bill, for example, stood at 3.99% Thursday, the highest since 2007. It had crossed above 1% in May for the first time since the pandemic broke out in March 2020. Even before the pandemic, the yield on the 3-month bill was less than 2%. The 1-month Treasury bill was yielding about 3.14% Thursday, while the 6-month bill was yielding 4.45%. To put that in perspective, the 30-year Treasury bond was yielding 4.16% Thursday. "If you look at January, '23 bills, they're at 4%," said Greg Faranello, head of U.S. rate strategy at AmeriVet Securities. "It's a good story. Yields are finally offering people an alternative to equities, which I think is healthy. ... It depends on your time horizon." Anthony Watson, founder of Thrive Retirement Specialists, said investors need to be clear on what they are buying. Bond yields move opposite to price, so if investors buy a bond or bill, and interest rates rise, they could lose principal. But in the case of short-term Treasury bills, an investor can use them as a parking lot for cash they do not need for a month, six months or even a year. As a cash alternative, it makes sense to hold a short-term bill as opposed to a longer duration bond, in case the direction of interest rates changes. "You're going to earn that yield and get your principal back at the end," he said. Watson said all investors have different requirements, but for someone looking for a cash alternative for a short period, T-bills offer safety and a better yield than they have in years. "They can be a great cash investment alternative. If you hold it to maturity, it's risk free. It's a Treasury bond, so there's no credit risk. As long as you hold it to maturity, you get that stated yield," he said. Watson said there's still a negative real return since inflation is running higher than the bills are yielding. "It's still better than sitting in a savings account," he said. He said if investors are putting money in bills it should be cash they don't need for the duration. "It depends on when the money is going to be needed," he said, adding that valuations in equities are starting to look appealing. | 2022-10-20T18:44:27Z | www.cnbc.com | This short-term investment hasn't looked as attractive since 2007 | https://www.cnbc.com/2022/10/20/this-short-term-investment-hasnt-looked-as-attractive-since-2007.html | https://www.cnbc.com/2022/10/20/this-short-term-investment-hasnt-looked-as-attractive-since-2007.html |
The student loan forgiveness application is now live — here's how to fill it out
Borrowers can now apply for federal student loan relief: here's how to get up to $20,000 forgiven
Skaman306 | Moment | Getty Images
For student loan borrowers, relief is finally here – on Oct. 17, the Department of Education launched its student loan forgiveness application. The application comes just months after Biden announced that borrowers who have federal student loans will be eligible for up to $20,000 worth of forgiveness.
Borrowers will have until Dec. 31, 2023 to complete their application, but fortunately the current application process can be completed in minutes.
Below, Select looks at who is eligible for forgiveness and how they can apply.
Only borrowers who hold federal student loans and meet certain income requirement can qualify for forgiveness.
In 2020 or 2021, single-earners must have made less than $125,000, and for households, less than $250,000. Note that you only need to meet the income requirements for either 2020 or 2021, not for both years. The requirements are based on your adjusted gross income (AGI), not your total income. Your AGI is often lower than your total income, and you can find it on your most recent tax return.
If you're a Pell Grant recipient who meets the income requirements, you can have up to $20,000 forgiven. Everyone else who meets the income requirements can have up to $10,000 forgiven. It's estimated that 43 million of the total 45 million federal student loan borrowers will qualify for some type of relief.
Federal student loan funds received before June 30, 2022 are eligible for forgiveness.
The application to apply for student loan forgiveness is short and straightforward. In order to apply, first go to the official application:
Studentaid.gov/debt-relief/application
To apply online, you'll need to provide your full name, Social Security number, date of birth and email. While you do not need to enter your AGI in the application, only people who meet the income thresholds can apply. According to the U.S. Department of Education, only some applicants will be contacted and required to provide proof of income.
If you cannot apply online, the Department of Education claims that a paper application will be available soon. You can find an FAQ on the website too.
While the official application for forgiveness launched on Monday, eight million borrowers completed the beta version of the application this weekend, according to Biden. Those who completed the beta application do not need to resubmit the application and will be considered 'first in line' to receive forgiveness.
And some people may not need to submit an application for relief. Nearly eight million borrowers will automatically receive forgiveness because their income data is already on file with the Department of Education. These borrowers can also opt out of receiving relief.
How long will it take for student debt to be forgiven?
It will take four to six weeks after you submit your application for it to be reflected in your loan balance. Your loan servicer will notify you when it does. If you want relief before student payments resume on January 1, you should submit your application before November 15.
Federal student loan payments were paused throughout the pandemic by both the Biden and Trump administrations. Payments are now set to resume on Jan. 1, 2023. If you continued to make payments during the pandemic, you can actually ask your loan servicer for a refund and then apply for student loan forgiveness to have your debt wiped away.
If you've been paying your federal student loans during the pandemic, here's how to get a refund
What if you have private student loans?
Unfortunately, private student loans are not eligible for forgiveness. If you do have private student loans and want to save, it may worth looking into refinancing, which can qualify you for better repayment terms, including a lower interest rate.
Note that if you have federal student loans and want to refinance them to get a lower rate, you'll also lose any federal protections. Select ranked the following as some of the best student loan refinancing companies:
For federal student loan borrowers, debt relief could be imminent. After borrowers fill out a simple application on the Department of Education website, it will take four to six weeks for relief to show up on people's accounts. Borrowers will have until Dec. 31, 2023 to apply and if they do so before November 15, 2022, it will be reflected in their balances before monthly student loan payments resume January 1.
Four million borrowers are now being excluded from student loan forgiveness
Student loan debt forgiveness is approved, up to $20,000 per borrower — here's who qualifies
Here's how soon experts say Biden's student loan forgiveness will reflect in your account | 2022-10-20T19:19:16Z | www.cnbc.com | How To Fill Out the Student Loan Forgiveness Application | https://www.cnbc.com/select/how-to-fill-out-student-loan-forgiveness-application/ | https://www.cnbc.com/select/how-to-fill-out-student-loan-forgiveness-application/ |
Regulators in Canada and the U.S. have greenlit new product offerings from two Club pharmaceutical giants, AbbVie (ABBV) and Johnson & Johnson (JNJ) — positive developments that validate our investment case in both holdings. AbbVie The news: Canada's national drug regulator, Health Canada, on Thursday approved AbbVie's Skyrizi as a treatment for Crohn's disease, an inflammatory bowel disorder. The regulator had previously cleared Skyrizi to treat active psoriatic arthritis and, for certain adults, severe plaque psoriasis. Skyrizi has been approved by the U.S. Food and Drug Administration to treat all three of those conditions. In the European Union, it's authorized to treat plaque psoriasis and psoriatic arthritis, while its use against Crohn's disease is under active consideration . Separately, AbbVie on Thursday announced it was buying privately-held biotech startup DJS Antibodies for $255 million in cash. The U.K.-based firm focuses on chronic inflammatory diseases and developed the HEPTAD platform — used to discover antibodies — which AbbVie said in a statement would complement its biotherapeutics research. The Club take: We pay close attention to all headlines involving Skyrizi because it's one of AbbVie's most important engines for current and future growth. Its other crucial drug is Rinvoq, a rheumatoid arthritis treatment. They are helping propel AbbVie forward, as the company prepares for its blockbuster drug, Humira, to lose exclusivity in the U.S. next year. As a health-care name, AbbVie is the kind of defensive stock we like in this uncertain market. And while this latest Skyrizi approval in Canada is not by itself a reason to buy the stock, it's positive that it continues to gain momentum as a Crohn's disease treatment. That helps expand its total addressable market. Buying DJS also is not a sole reason to invest in AbbVie on Thursday. Acquisitions of this nature — a big, established player buying a smaller pre-clinical startup — aren't uncommon in biotech. Companies like Abbvie tend to take a lot of shots with these sorts of acquisitions in the hope a few will land. Investors continue to look for more information on when AbbVie management expects earnings will bottom out from the Humira patent expiration. While we may not receive full-year 2023 guidance when the company releases third-quarter earnings before the bell on Oct. 28, we may gain a little more insight into the thinking around Humira. The less uncertainty that lingers, the better it is for the stock. Johnson & Johnson The news: One of Johnson & Johnson's medical device companies received FDA clearance for a technology used in spine surgeries. The technology platform — called Teligen — was developed by DePuy Synthes, a J & J subsidiary under the medical technology umbrella. J & J said Thursday it expects Teligen to be available in the U.S. later this year. Medical technology was J & J's second-largest division by revenue in the company's better-than-expected third quarter , at $6.8 billion, behind the pharmaceutical unit's $13.2 billion in sales. The Teligen platform is specifically meant for use in MIS-TLIF procedures, shorthand for minimally invasive surgical transforaminal lumbar interbody fusion. Those surgeries are performed to treat painful spine-related ailments like herniated discs and degenerative disc disease . The Club take: The regulatory approval demonstrates some of the innovation going on inside J & J's medical technology business, which also includes products like catheters and contact lenses. J & J CEO Joaquin Duato, who took over the role earlier this year, has spoken about the complementary nature of the med tech and pharmaceutical divisions. That's why those two units are being paired together as part of J & J's impending split. They will form one publicly traded company, while the consumer health unit will become its own entity. "The future of medicine, it's going to be a combination of biopharmaceutical and surgical interventions. That's where Johnson & Johnson is going to play, in that intersection. That's why it makes sense to keep med tech and pharmaceuticals together," Duato told CNBC last month. We like owning J & J for its defensive characteristics right now, while all three divisions are under the same roof. Long term, we also support the breakup, which is expected to be completed by the end of next year. We view that as a positive catalyst on the horizon and see this week's post-earnings pullback as a buying opportunity . (Jim Cramer's Charitable Trust is long ABBV and JNJ. 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.
A sign stands outside a Abbvie facility in Cambridge, Massachusetts, May 20, 2021.
Regulators in Canada and the U.S. have greenlit new product offerings from two Club pharmaceutical giants, AbbVie
(ABBV) and Johnson & Johnson
(JNJ) — positive developments that validate our investment case in both holdings. | 2022-10-20T20:16:07Z | www.cnbc.com | Regulatory approvals for AbbVie, J&J bolster the Club investment case | https://www.cnbc.com/2022/10/20/regulatory-approvals-for-abbvie-jj-bolster-the-club-investment-case.html | https://www.cnbc.com/2022/10/20/regulatory-approvals-for-abbvie-jj-bolster-the-club-investment-case.html |
A federal appeals court on Thursday rejected a request by Sen. Lindsey Graham to block a subpoena for his testimony before a Georgia grand jury investigating former President Donald Trump for election interference.
Graham, R-S.C., had asked the 11th Circuit Court of Appeals to stay an order compelling his testimony issued by a federal district judge in Georgia pending his appeal of that decision.
U.S. Senator Lindsey Graham (R-S.C.) looks on during a news conference calling to designate Russia as state sponsor of terrorism, on Capitol Hill, in Washington, U.S., September 14, 2022. | 2022-10-20T20:50:36Z | www.cnbc.com | Sen. Lindsey Graham loses bid to stall testimony in Trump election probe | https://www.cnbc.com/2022/10/20/sen-lindsey-graham-loses-bid-to-stall-testimony-in-trump-election-interference-probe.html | https://www.cnbc.com/2022/10/20/sen-lindsey-graham-loses-bid-to-stall-testimony-in-trump-election-interference-probe.html |
CEO of Snap Inc. Evan Spiegel walks to a morning session at the Allen & Company Sun Valley Conference on July 07, 2021 in Sun Valley, Idaho.
shares plummeted more than 20% in extended trading on Thursday after the social media company reported weaker-than-expected revenue for the third quarter. It's Wall Street's first peak into the current state of the struggling online ad market.
Snap's third-quarter revenue grew 6% from a year earlier, the first time its dipped into single digits since the company's public market debut in 2017. Meanwhile, even as it reported a surprise adjusted profit, Snap's net loss surged 400% to $360 million, partly due to a $155 million restructuring charge.
"This quarter we took action to further focus our business on our three strategic priorities: growing our community and deepening their engagement with our products, reaccelerating and diversifying our revenue growth, and investing in augmented reality," Snap CEO Evan Spiegel said in a statement. User growth "continues to expand our long-term opportunity as we navigate this volatile macroeconomic environment," he said.
Snap also said in a letter to investors that it would not give guidance for the second straight quarter.
The company added that it's "likely that year-over-year revenue growth will decelerate as we move through Q4, due in large part to the fact that Q4 has historically been relatively more dependent on brand-oriented advertising revenue, which declined slightly on a year-over-year basis in the most recent quarter."
2021 privacy update to iOS remains a barrier in Snap's ability to track users across the web, thus weakening its online advertising business. Rival social media companies, most notably Facebook, have been similarly hurt by Apple's changes. Facebook parent Meta
reports quarterly results next week.
Snap shares have lost over three-quarters of their value this year and are down more than 30% since July, when the company reported second-quarter results that missed on the top and bottom lines. As in the second quarter, Snap's board authorized a stock repurchase program of up to $500 million. The company had $4.4 billion in cash, cash equivalents, and marketable securities as of Sept. 30.
As part of its plan to reduce costs, Snap said during the quarter that it would shutter several expensive projects, including its Pixy drone, which it planned to sell for $230. Snap also ended the production of its Snap Originals premium shows.
.Should the stock close on Friday at its after-hours level it would be the lowest since early 2019. | 2022-10-20T20:50:38Z | www.cnbc.com | Snap earnings Q3 2022 | https://www.cnbc.com/2022/10/20/snap-earnings-q3-2022.html | https://www.cnbc.com/2022/10/20/snap-earnings-q3-2022.html |
Snapchat logo displayed on a phone screen is seen with a laptop in the background in this illustration photo taken in Krakow, Poland on August 10, 2022.
– The social media stock plummeted 25% after Snap's revenue came in lower than expected after the bell. The number of global daily active users came in higher than forecasted. The company's third-quarter revenue was about 6% higher than last year. Meta
also slid 4.7% and 2.6%, respectively.
– The transportation company is trading up 4.3% after it reported third-quarter results, posting beats on top and bottom lines. CSX reported 52 cents in adjusted earnings per share on revenue of $3.90 billion. Analysts predicted per-share earnings of 49 cents on revenue of $3.74 billion, according to Refinitiv.
– Shares are down 7.7% following its earnings report. The employment agency missed expectations on top and bottom lines, posting per-share earnings of $1.53 on revenue of $1.83 billion. Analysts anticipated per-share earnings of $1.62 on revenue of $1.92 billion, according to StreetAccount.
– Shares shed 4.8% after the company said after the bell its third-quarter net sales declined and its bottom line was hurt by short-term headwinds. The company missed expectations on the top and bottom lines, posting $4.49 in adjusted earnings per share on revenue of $4.78 billion.
– The bank's shares dropped 12.5% after it posted third-quarter earnings that beat expectations. SVB posted per-share earnings of $7.21, compared to analysts' expectations of $7.09 per share. "We continue to see strength and momentum in our underlying business, despite persistent market challenges affecting liquidity flows to private companies, rising rates and fear of recession," said Greg Becker, president and CEO of SVB Financial Group.
– Shares slid 14% after the company reported its quarterly results. Adjusted per-share earnings came in at $1.44, compared to analysts' expectations of $1.24, according to Refinitiv. Revenues were in line with estimates at $4.81 billion. The company dialed back its fourth-quarter guidance for per-share earnings and revenue. Tenet also announced a $1 billion share buyback program. | 2022-10-20T22:22:08Z | www.cnbc.com | Stocks making the biggest moves after hours: Snap, CSX, Whirlpool and more | https://www.cnbc.com/2022/10/20/stocks-making-the-biggest-moves-after-hours-snap-csx-whirlpool-and-more.html | https://www.cnbc.com/2022/10/20/stocks-making-the-biggest-moves-after-hours-snap-csx-whirlpool-and-more.html |
Yields are rising again, and interest rate hikes look set to continue. Analysts say that means it's a good time for investors to put their cash in bonds or Treasurys — especially the ones with the shortest duration. BlackRock said in a note on Tuesday that it believes the U.S. Federal Reserve will continue to stabilize inflation in a "deliberate and determined fashion," and its war on inflation doesn't mean it will "induce a recession unnecessarily." "The pace of hiking priced by the market for the next 6 months strikes us as a bit overdone and we believe this creates opportunities in front-end government bonds and investment grade corporate debt," said BlackRock's Gargi Chaudhuri, head of iShares investment strategy for the Americas. "In addition to absolute yield levels that we have not seen in years, bonds may now offer more ballast against volatile equity positions — an added boon in case of recession," she added. Yields popped again on Wednesday , with the 10-year Treasury surging to its highest since July 2008 to 4.136. The 2-year Treasury also jumped to 4.55%. The 10-year was last at 4.176% on Thursday during Asia hours, and the 2-year was at 4.6%. In a note last week, Wells Fargo suggested that investors seize this small window of opportunity. "For investors, the significant increase in short-term yields has important implications and has provided short-term opportunities that we have not seen in over two decades," said Brian Rehling, head of global fixed income strategy. "Unfortunately, the nature of short-term maturities implies these opportunities may be relatively short-lived." What to buy BlackRock said it expects the Fed to maintain a "higher for longer" stance in interest rates, even in the face of recession risks. As markets approach "max pessimism in rates," BlackRock said it sees opportunities in these short-duration funds: iShares Short Treasury Bond ETF: It's comprised of bonds which mature in less than a year. iShares 0-5 Year TIPS Bond ETF: It has exposure to short-term U.S. Treasury Inflation-Protected Securities (TIPS). iShares 1-5 Year Investment Grade Corporate Bond ETF: It has exposure to U.S. corporate bonds with maturities between one to five years. "We also expect the Fed to be 'higher for longer', so we think opportunities extend further out the curve as well," said BlackRock's Chaudhuri. Overall, she said, the opportunities in short-duration bonds look best through to the end of the year. Earlier this week, Goldman Sachs also said it was overweight on cash , and likes more defensive real assets in the near term, such as TIPS. Wells Fargo said it was most positive on U.S. Short Term Taxable Fixed Income, adding it believes short-term rates may stay attractive over the next six months. "What is evident is that the Fed controls the direction of short-term rate movements," it said. "Short-term maturities with maturities in 6- to 12-months anticipate Fed rate moves." BlackRock's sample portfolio for U.S. Short Term Taxable Fixed Income on its website, dated Oct. 3, showed a mix of holdings. They comprise: A mix of Treasury notes with coupons of up to 3% and maturing between 2023 to 2026. Bonds of U.S. investment banks, tech firms and others with coupons of up to more than 4%, and maturing between 2023 to 2026. | 2022-10-21T01:24:46Z | www.cnbc.com | What to invest in amid rising Treasury yields and rate hikes: Analysts | https://www.cnbc.com/2022/10/21/what-to-invest-in-amid-rising-treasury-yields-and-rate-hikes-analysts.html | https://www.cnbc.com/2022/10/21/what-to-invest-in-amid-rising-treasury-yields-and-rate-hikes-analysts.html |
A month after the Ethereum merge, supply is finally declining as hoped but the price of ether remains stuck
It's been a little more than a month since the Ethereum merge and one of the big changes that investors were looking forward too has now taken place: ether has become a "deflationary" asset. In crypto terms, that means that the supply of ether is now decreasing rather than increasing. But while many investors hoped that would push the cryptocurrency price higher (assuming there was no change in demand), it hasn't yet happened in a significant way. Despite basic supply and demand dynamics on the network, the macro backdrop still has a strong hold on crypto prices. "Theoretically speaking, if we see a deflationary environment then there should be upward pressure on the price, but there are other factors that affect the ether price," said Owen Lau, an analyst at Oppenheimer. "These tokens are still correlated with equity prices, with the macro environment. That actually has a larger impact on the price currently than supply and demand." Things could reverse Plus, he added, there's a chance that things could reverse, and the digital asset could become "inflationary" again. The price of ether has been slightly lower since the post-merge sell-off in mid-September. As of Tuesday afternoon it was down about 4% over the past month and the same amount on a month-to-date basis. The supply of ether decreases when the amount of ether "burned" on the network, or destroyed and removed permanently from circulation, is greater than the amount being created. The burn function is a "scarcity engine fueled by Ethereum's transactional utility," according to data provider Ultrasound Money. Last week, gas fees, or transaction fees, were high, likely as a result of higher traffic on the network. Ethereum uses those gas fees to burn tokens, so with higher fees the network had more money to burn. "We don't know when the Fed will pivot, we don't know the next CPI number, but there are some network specific things that could change the price," Lau said. "If there are more use cases built on top of Ethereum, that can also support the ETH price," he added. "If there's another big NFT launch or a big sale and they're using ETH to be the medium of exchange, that could increase the demand as well. We just don't have all these catalysts, it seems like we just have not heard about them other than the merge itself." Staked ether has been increasing. At some point if the staked ratio goes high enough, then this deflationary scenario could actually turn back to inflationary. High gas fees can always come down however, Lau said, and that would mean the network would have less ether to burn. "At some point, if you burn less ETH but at the same time people stake more, then you could see the network cross another equilibrium where the net supply would increase," he said. "It would become an inflationary asset… This situation may not last forever." | 2022-10-21T03:52:40Z | www.cnbc.com | A month after the Ethereum merge, supply is finally declining as hoped but the price of ether remains stuck | https://www.cnbc.com/2022/10/21/a-month-after-the-ethereum-merge-supply-is-finally-declining-as-hoped-but-the-price-of-ether-remains-stuck.html | https://www.cnbc.com/2022/10/21/a-month-after-the-ethereum-merge-supply-is-finally-declining-as-hoped-but-the-price-of-ether-remains-stuck.html |
According to the International Energy Agency's latest gas report, in the first eight months of the year, Asian spot or short-term LNG imports were down 28% compared to the same time last year. Overall LNG imports fell 7% year-on-year.
The deployment of renewables takes time and will not ease security concerns in the short term ... therefore, we are likely to see more of a push to boost the supply of fossil fuels and therefore the reliance on these dirtier fuels. | 2022-10-21T06:46:42Z | www.cnbc.com | Asia's energy supply looks secure — even as Europe scrambles | https://www.cnbc.com/2022/10/21/asias-energy-supply-is-secure-even-as-europe-scrambles-analysts-say.html | https://www.cnbc.com/2022/10/21/asias-energy-supply-is-secure-even-as-europe-scrambles-analysts-say.html |
'Turkey has long been hell for journalists': Reporters slam country's new 'fake news' law
A kiosk in Istanbul on April 17, 2017, showing Turkish newspapers a day after Turkey's referendum. Turkey currently ranks 149 out of 180 countries in the world press freedom index, with 90% of national media under government control, according to international non-profit organization Reporters Without Borders. | 2022-10-21T09:01:38Z | www.cnbc.com | Turkish reporters slam country's new 'fake news' law | https://www.cnbc.com/2022/10/21/turkish-reporters-slam-countrys-new-fake-news-law.html | https://www.cnbc.com/2022/10/21/turkish-reporters-slam-countrys-new-fake-news-law.html |
It didn't matter that Snap
posted adjusted earnings per share while Wall Street was expecting a loss. Or that its revenue grew, or that its user count increased. It all just wasn't good enough, and it doesn't look like it's going to get any better as the advertising market gets tighter. Snap shares, already down 77% as of Thursday's close, plummeted 25% in off-hours trade. The company's 6% year-over-year revenue gain was the first time quarterly sales growth fell into single digits since the social media company went public in 2017. Its user gain was offset by a decline in revenue per user. "We are finding that our advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressures, and rising costs of capital," Snap told shareholders.
The Washington Post reported Thursday evening that Elon Musk is planning to eliminate 75% of Twitter
's 7,500-person workforce if he takes over the company. One former executive said the cuts would be so drastic, it could leave users exposed to security threats and images of children in sexually abusive situations. But, the Post added, the current Twitter regime is planning on dramatic layoffs of its own – about a quarter of the company's workforce – and the completion of Musk's $44 billion deal to buy the social network would spare them from making painful decisions. Twitter's top lawyer, in response to the Post article, told employees in an email that the company's plan was put on hold after the merger agreement was signed. Musk has until Oct. 28 to finish the deal. Elsewhere, Bloomberg reported that the Biden administration was considering national security reviews for Musk's Starlink satellite internet service and his Twitter deal. | 2022-10-21T11:25:31Z | www.cnbc.com | 5 things to know before the stock market opens Friday: Truss quits, Twitter job cuts? | https://www.cnbc.com/2022/10/21/5-things-to-know-before-the-stock-market-opens-friday.html | https://www.cnbc.com/2022/10/21/5-things-to-know-before-the-stock-market-opens-friday.html |
Former top Trump White House advisor Steve Bannon is set to be sentenced for defying a subpoena from the House probe of the Jan. 6 Capitol riot.
Federal prosecutors want Bannon to be sentenced to six months in jail and fined $200,000.
Former Trump White House chief strategist Steve Bannon speaks to the media after the opening day of his trial on contempt of Congress charges stemming from his refusal to cooperate with the U.S. House Select Committee investigating the Jan. 6, 2021, attack on the Capitol, at U.S. District Court in Washington, July 18, 2022.
The proceeding, set for 9 a.m. ET in U.S. District Court in Washington, D.C., could make Bannon one of the highest-profile figures to be locked up on charges related to the insurrection. He is expected to appeal his conviction.
Federal prosecutors want the court to sentence Bannon to six months in jail — the top end of the federal sentencing guidelines range — and the maximum fine of $200,000.
Bannon has asked federal Judge Carl Nichols for a sentence of probation. His lawyers also argued that the court should delay any sentence imposed until an appeals court could hear the case.
Bannon's sentence came one year to the day since the House voted to hold him in contempt of Congress for refusing to comply with a House select committee's subpoena for documents and testimony. Bannon was indicted in November on two criminal counts and convicted after a federal trial in July.
Bannon's lawyer had argued that the subpoena would violate Trump's executive privilege, the presidential power to withhold certain information from the public.
But the Justice Department prosecutors said that Bannon "pursued a bad-faith strategy of defiance and contempt" from "the moment" he was served the subpoena. | 2022-10-21T13:01:27Z | www.cnbc.com | Steve Bannon to be sentenced after ex-Trump aide defied Jan. 6 subpoena | https://www.cnbc.com/2022/10/21/steve-bannon-to-be-sentenced-after-ex-trump-aide-defied-jan-6-subpoena.html | https://www.cnbc.com/2022/10/21/steve-bannon-to-be-sentenced-after-ex-trump-aide-defied-jan-6-subpoena.html |
Evan Spiegel, CEO of SNAP Inc.
Shares of Snap
fell about 28% in premarket trading Friday morning after investors continued to digest the company's third-quarter earnings report that was released Thursday night.
The company has managed to continue to grow in popularity, with daily active users increasing 19% year-over-year.
Shares of Snap are down about 77% year-to-date. | 2022-10-21T13:35:51Z | www.cnbc.com | Snap stock continues to plunge on disappointing Q3 revenue | https://www.cnbc.com/2022/10/21/snap-shares-continue-to-plunge-on-disappointing-q3-revenue.html | https://www.cnbc.com/2022/10/21/snap-shares-continue-to-plunge-on-disappointing-q3-revenue.html |
Mark Cuban says he didn't intend to become a billionaire: 'I never, ever thought in terms of money'
Team owner Mark Cuban of the Dallas Mavericks reacts as the Dallas Mavericks take on the Utah Jazz in the fourth quarter of Game Five of the Western Conference First Round NBA Playoffs at American Airlines Center. | 2022-10-21T13:36:05Z | www.cnbc.com | Why billionaire Mark Cuban says he cares more about time than money | https://www.cnbc.com/2022/10/21/why-billionaire-mark-cuban-says-he-cares-more-about-time-than-money.html | https://www.cnbc.com/2022/10/21/why-billionaire-mark-cuban-says-he-cares-more-about-time-than-money.html |
Investors should buy AT & T after its strong third-quarter results, according to Truist. Analyst Greg Miller upgraded AT & T to buy from hold — saying the bank and its predecessors had kept the hold rating for more than 15 years — because of an "increasingly visible outlook" after the carrier beat profit and revenue expectations in its most recent quarter. "[We] are upgrading the shares of AT & T to Buy from Hold (have been Hold rated for more than 15 years) on the belief that trends of the past few quarters are increasingly likely to continue," Miller wrote in a Friday note. The analyst reiterated a $21 price target, implying 25% upside from Thursday's closing price of $16.74. The stock is down 0.8% in Friday premarket trading. Shares of AT & T have outperformed this year, down nearly 10% compared to the S & P 500's roughly 23% drop. However, they have also underperformed over the past 15 years, with the stock down about 47% over the past 15 years, compared to the S & P 500's gain of nearly 145% over the same time period, according to the note. Still, the analyst expects that AT & T's return to its core business of wireless and wireline connectivity after divesting Warner Media and DirecTV will improve the company. Miller expects that improving operating trends will continue so that AT & T will generate more than $17.8 billion of free cash flow in 2023, and more than $19.6 billion free cash flow in 2024, meaning FCF yields of 14% and 15.4%, respectively, according to the note. "Now that it is increasingly clear that we are in fact on a trajectory to a $17.0+ billion 2023 FCF and beyond, we believe the company should be in an increasingly strong position to either return capital to shareholders or reinvest in the core business it is demonstrating success with," read the note. —CNBC's Michael Bloom contributed to this report. | 2022-10-21T14:32:44Z | www.cnbc.com | Truist upgrades AT&T for the first time in more than 15 years, cites improving operating trends | https://www.cnbc.com/2022/10/21/truist-upgrades-att-for-the-first-time-in-more-than-15-years-cites-improving-operating-trends.html | https://www.cnbc.com/2022/10/21/truist-upgrades-att-for-the-first-time-in-more-than-15-years-cites-improving-operating-trends.html |
The budget shortfall declined to $1.375 trillion, compared to the 2021 deficit of $2.776 trillion. Revenue posted easily the highest one-year total on record.
U.S. Treasury Secretary Janet Yellen listens to a reporter's question at a news conference during the Annual Meetings of the International Monetary Fund and World Bank in Washington, U.S., October 14, 2022.
The shortfall hit a record $3.13 trillion in 2020 due to more than $5 trillion in CARES Act and other spending. In 2019, the deficit was $983.6 billion. Prior to 2020, the highest deficit ever was $1.41 trillion 2009 as the financial crisis came to a close. The U.S. briefly ran a surplus from 1998-2001.
Yellen added that the results also showed President Joe Biden's "commitment to strengthening our nation's fiscal health."
Earlier this year, the White House pushed through the Inflation Reduction Act, aimed at a variety of areas including reducing medical costs, boosting clean energy and reforming the tax code. However, inflation has continued to climb, and administration officials have stressed the Federal Reserve's primary role in fighting price increases through interest rate hikes. | 2022-10-21T15:07:13Z | www.cnbc.com | U.S. budget deficit cut in half for biggest decrease ever amid Covid spending declines | https://www.cnbc.com/2022/10/21/us-budget-deficit-cut-in-half-for-biggest-decrease-ever-amid-covid-spending-declines.html | https://www.cnbc.com/2022/10/21/us-budget-deficit-cut-in-half-for-biggest-decrease-ever-amid-covid-spending-declines.html |
An aerial view of Apple Park is seen in Cupertino, California, United States on October 28, 2021.
Apple's vice president of industrial design, Evans Hankey, is leaving the company, Apple
confirmed to CNBC on Friday.
Apple stock was largely unchanged on the news, rising less than 1% on Friday during intraday trading. | 2022-10-21T16:03:45Z | www.cnbc.com | Apple's top designer is leaving three years after taking over from Ive | https://www.cnbc.com/2022/10/21/apples-top-designer-is-leaving-three-years-after-taking-over-from-ive.html | https://www.cnbc.com/2022/10/21/apples-top-designer-is-leaving-three-years-after-taking-over-from-ive.html |
For investors navigating this inflationary environment, there has been no better risk-free return than the Series I bond. The asset, backed by the U.S. government, has a variable rate based on inflation. Right now, that interest rate is a record 9.62% through Oct. 31. It's expected to fall to roughly 6.48% in November , although the rate will only be known once the government announces it. The asset also has a fixed rate, which is currently zero. While inflation is still high, the Federal Reserve is hiking rates in an effort to bring it down. Yet experts believe the I bond is still a great way to earn income for at least the next year. If you buy an I bond before Oct. 28, you will lock in the 9.62% interest rate for six months. After that, you'll earn the new interest rate for another six months. "In a year when every asset class is so unpleasant, this is something that people can do to feel like they have a bit of control and they are putting their money into an investment that will pay them a very clear and guaranteed interest rate," said certified financial planner Brenna McLoughlin, senior advisor at Wealthstream Advisors. What you do after that year depends on several factors, including future interest rates, the amount of money you have in I bonds and your tax situation. How to buy I bonds I bonds can only be bought on the government website, TreasuryDirect.com , which has been recently updated . That means keeping track of an account separate from your other investments. "Time is money," said CFP Carolyn McClanahan, founder of Life Planning Partners. You'll have to make sure you are checking interest rates and when they go down, you'll have to move the money out and into a diverse portfolio, she said. "Some people just don't want the hassle." You should also make sure that you have added beneficiaries to your TreasuryDirect account and that these individuals know how to track it. Without a beneficiary, accessing the bonds could prove difficult for any heirs in the event the bondholder dies or becomes incapacitated. How much you can buy You also have a limit to how much you can invest each year. Individuals with Social Security numbers, including children, are capped $10,000 annually. Therefore, a family of four can invest $40,000, with the minors' bonds in custodial accounts. You can also buy up to $5,000 in paper bonds through federal income tax returns. Trusts and businesses can each also purchase $10,000 in I bonds a year. However, legislation has been introduced in the Senate. Called the Savings Security Act of 2022 , it would raise the annual cap to $30,000 per person when the average of the annualized changes in the consumer price index for all urban consumers during any six-month period exceeds 3.5%. "Arbitrary purchasing caps on I Bonds … are shortchanging the public from better utilizing the program," Sen. Deb Fischer, R-Nebraska, said in a September statement announcing the bill. How to fit I bonds into your portfolio You could consider I bonds part of your savings, but it would not be the core part of your emergency fund because you have to hold onto it for at least 12 months. "Make sure you have a cash reserve first before you start looking at these," said Tyler Huck, a financial advisor for Atlanta-based oXYGen Financial. While the bond technically earns interest for 30 years, it's also not generally considered part of your longer-term fixed income bucket. When inflation goes down you likely won't be earning much, McLoughlin and McClanahan said. Therefore it sits somewhere in between emergency savings and a long-term investment. The key is keeping an eye on inflation. You lose three months of interest if you cash it in before five years, but it is still worth doing so if rates are going down, they said. At that point, you'll want to see where that money may earn more elsewhere. "In the short term, it's going to juice your portfolio," McClanahan said. "If you are going to need it in the next year or two, that is a great interest rate you can make." However, a diversified bond portfolio will likely provide the same results over the long term, she added. Another thing to think about is how much you are holding in I bonds, McLoughlin said. Any interest you make on I bonds is subject to federal income taxes, but not state or local levies. If you accumulate them over the years, are able to add more than the annual $10,000 or the cap gets raised, it could become a bigger holding and you may want to see if there is a smarter tax-free investment elsewhere. "Think about the after-tax yield and if it is a long-term holding, is it more appropriate to roll it into a municipal bond strategy?" McLoughlin said. Municipal bonds are generally free of federal taxes and potentially state and local levies as well. That makes them particularly attractive to high earners in high income tax states. Either way, when inflation comes down you'll want to consider your next move. "People can spend it. They can put it into their portfolio if they want to choose to take on more risk to get more return then they are getting from cash," McLoughlin said. If you are risk-averse, you could also simply move it to a savings account. "At some point it may be that bank accounts are offering more [interest] than an I bond and you have free liquidity there," Huck said. That could mean a money market or high-yield savings account, he said. | 2022-10-21T16:38:34Z | www.cnbc.com | I bond rates are set to drop, but they still offer the best risk-free return | https://www.cnbc.com/2022/10/21/rates-on-these-safe-haven-bonds-are-set-to-drop-in-november-but-they-still-offering-the-best-risk-free-return.html | https://www.cnbc.com/2022/10/21/rates-on-these-safe-haven-bonds-are-set-to-drop-in-november-but-they-still-offering-the-best-risk-free-return.html |
Earlier this week, Apple
introduced a redesigned iPad and updates to the iPad Pros. They'll likely help the company spur sales during the ever-important holiday shopping season. But, it also means the company now sells six different iPads, and you might find it a bit tricky to pick the one that's best for you or a loved one.
The iPad Air has Center Stage, which helps you keep you in the frame during video calls, meaning you can move back and forth around the room while chatting on FaceTime and the camera will follow you.
You can buy a 5G cellular version of the iPad mini which means you can download apps, music and movies faster when you're away from Wi-Fi networks. | 2022-10-21T17:35:09Z | www.cnbc.com | Apple iPad buyer's guide: How to pick the model that's right for you | https://www.cnbc.com/2022/10/21/apple-ipad-lineup-shopping-guide.html | https://www.cnbc.com/2022/10/21/apple-ipad-lineup-shopping-guide.html |
If you're eager to save more for retirement in 2023, there's good news from the IRS: higher limits for your annual 401(k) plan and individual retirement account contributions.
The employee contribution limit for 401(k) plans is increasing to $22,500 in 2023, up from $20,500, and catch-up deposits for savers age 50 and older will jump to $7,500, up from $6,500. The new amounts also apply to 403(b), most 457 and Thrift Savings Plans. | 2022-10-21T18:09:58Z | www.cnbc.com | Investors can contribute up to $22,500 in a 401(k) and $6,500 in IRAs in 2023 | https://www.cnbc.com/2022/10/21/investors-can-contribute-up-to-22500-in-a-401k-and-6500-in-iras-in-2023.html | https://www.cnbc.com/2022/10/21/investors-can-contribute-up-to-22500-in-a-401k-and-6500-in-iras-in-2023.html |
Republican presidential candidate Donald Trump delivers remarks while campaigning at Regent University October 22, 2016 in Virginia Beach, Virginia.
The records being sought by the House committee pursuant to the subpoena are due Nov. 4. The subpoena also says that Trump would be deposed on or about Nov. 14, after the midterm elections.
Committee Chairman Rep. Bennie Thompson, D-Miss., and Republican Vice Chairwoman Liz Cheney of Wyoming, in their letter to Trump, cited what they called his central role in a deliberate, "multi-part effort" to reverse his loss in the 2020 presidential election, and to remain in power.
The letter accused Trump of "maliciously" making false allegations of election fraud, "attempting to corrupt the Department of Justice" to endorse those claim, pressuring state officials to change election results, and overseeing efforts to submit false electors to the Electoral College. | 2022-10-21T18:10:12Z | www.cnbc.com | Jan. 6 Capitol riot probe subpoenas Donald Trump | https://www.cnbc.com/2022/10/21/jan-6-capitol-riot-probe-subpoenas-donald-trump.html | https://www.cnbc.com/2022/10/21/jan-6-capitol-riot-probe-subpoenas-donald-trump.html |
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