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f0c2c6a8e1224dc6b8893504747e6ae8 | https://www.cnbc.com/2019/10/25/intel-ceo-robert-swan-on-how-to-build-on-its-best-quarter-ever.html | Intel CEO, as shares soar, talks about how to build on its best quarter ever | Intel CEO, as shares soar, talks about how to build on its best quarter ever
VIDEO4:0104:01Intel CEO Bob Swan explains how the company had its 'best quarter' in its 51-year historySquawk Alley
Intel CEO Robert Swan told CNBC he's confident the technology giant will continue its strong performance in final months of the year, building off its best quarter ever.
Shares of Intel were up more than 7% on Friday. The company posted third-quarter revenues of $19.19 billion, surpassing Wall Street expectations by more than $1 billion, and raised its full-year outlook.
"The tailwinds we see are relatively strong," Swan told CNBC's Jon Fortt.
Intel, a Dow component, helped the index rise about .6% on Friday, putting it just below the 27,000 mark.
Swan, who became permanent CEO in January after seven months as interim, said renewed demand from cloud service providers not only buoyed Intel's third quarter, but it will also carry over for the rest of the year.
"What we've experienced, though, is big purchases that then get digested over time," Swan said. "And I think this quarter, in Q3, has been really the first in three quarters where we saw, particularly the cloud service providers, come back and start to place demands for high-performance compute again."
"We saw a bit of a resurgence for demand in the third quarter, and that's what gives us optimism for a real strong fourth quarter as well," Swan said.
Swan said his optimism prevails despite the fact Intel had about $200 million worth of "pull-ins" in the third quarter. A "pull-in" is when sales that had been scheduled for future quarters are brought into the current quarter.
Those "pull-ins" came from trade-related demands, Intel's CFO George S. Davis said on an earnings call.
"We still expect the fourth quarter to be stronger than what we thought back in the July time frame," Swan said.
Overall, Swan said Intel has benefited from what he called an "insatiable demand for data."
"The compute, the storage and the transmission of that data, those signs are very positive and they've been positive for a while," Swan said. "And we don't expect digital transformation, both in the lives of consumers and in the lives of businesses to change."
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864bc215012698fb75c9e62e707d569a | https://www.cnbc.com/2019/10/25/jim-cramer-stocks-to-buy-or-ignore-one-year-after-honeywell-spinoff.html | VIDEO2:0802:08ServiceNow CEO: Brexit, macro headwinds aren't stopping digital spendingMad Money with Jim Cramer
Company breakups can unlock value for shareholders, but not all spin-offs are created equal, CNBC's Jim Cramer said Friday.
Honeywell International spun off its auto parts division Garrett Motion and home systems business Resideo Technologies about a year ago, which allowed the manufacturer to focus on the more consistent aerospace, non-residential construction and industrial software markets.
That move is paying off for Honeywell, the "Mad Money" host said.
"Honeywell's a very smart company, run by the brilliant Darius Adamczyk, and you don't want to buy what he's selling," the host said. "If he didn't want exposure to autos and climate control here, then maybe you shouldn't want it either."
Cramer recommended Honeywell stock — above $171 per share at Friday's close — as a buy. Resideo and Garrett Motion, both trading at less than $10 a piece, are "in the penalty box until they figure out how to turn themselves around," according to the host.
Garrett Motion, valued at roughly $743 million, makes turbochargers, electric boosters and software for automobiles. The stock has lost almost half its value since the September 2018 divestiture, and Cramer thinks it "makes a ton of sense" because the auto industry is in "dire straits."
To make matters worse, the CFO is stepping away from the company, which Cramer said is "not a sign of confidence."
"For the moment, Garrett's a show-me story in an awful market," Cramer said. "We need to see some evidence of a turn in the auto industry before we can think of owning this one."
As for Resideo, the company earlier this week pre-announced a quarterly shortfall and cut its full-year guidance, causing the stock to collapse nearly 40%.
Resideo's CFO is also departing, and management is going through an operational and finance review. Resideo, holding $1.1 billion in market cap, makes home climate control and security systems. Because housing is a better market than autos, Cramer is not as sour on this equity.
Still, "Don't even consider buying this one until we see some sign that management has a plan ... to turn things around," he said.
"Right now Honeywell's one of the best performing industrials out there. It's up 30% for the year in an environment that's been tough on the industrials," Cramer said. "They'd be doing much worse if they'd held onto the housing and auto divisions."
VIDEO9:1609:16Assessing Honeywell spinoff one year later — stocks buy and not: Jim CramerMad Money with Jim Cramer
Disclosure: Cramer's charitable trust owns shares of Honeywell.
Disclaimer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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f49f11273f1897fc455f334416461b73 | https://www.cnbc.com/2019/10/25/jim-cramers-mad-money-recap-stock-picks-oct-24-2019.html | VIDEO1:0501:05Cramer Remix: The high-quality cloud names worth buying slowly hereMad Money with Jim Cramer
As Wall Street gets through the thick of earnings season, CNBC's Jim Cramer helps investors make sense of the stocks worth buying here. The "Mad Money" host points out what American companies are performing well in China, despite the trade war. Later in the show he reveals stocks worth picking up in the beaten-down software sector and checks in with Centene CEO Michael Neidorff to discuss a major looming Obamacare court case.
Bottles of Coca-Cola and Pepsi soda are displayed on the shelves of a store.SeongJoon Cho | Bloomberg | Getty Images
CNBC's Jim Cramer on Thursday said the stocks worth owning are those of companies that can keep performing at this stage of the business cycle.
After years of robust economic expansion, the global economy is entering a slowdown phase. As opposed to looking at aggregated numbers from earnings season thus far — 42% of reporting companies have beaten estimates, and 24% have cut their forecasts — market players need to do a company-by-company review to understand the best spots to invest money, the "Mad Money" host said.
"When you're looking at stocks this earnings season, these are the buckets you need to be sorting them into: Who's doing so well they don't notice the environment, who's thriving in spite of the environment, who's treading water, and who's getting steamrolled?" he said. "When you divvy the corporate world up into those categories, there's a lot to like but a lot to avoid."
Tesla CEO Elon Musk and Shanghai's Mayor Ying Yong attend the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai, China January 7, 2019.Aly Song | Reuters
Believe it or not, there is a bucket of businesses that are winning in China, Cramer said.
PayPal, Tesla and Lam Research are on that list of companies, he said. The key to doing so is "surprisingly" simple: hire a ton of workers in China, work with government, play by the rules and be "indispensable" in making new technologies, he added.
"I wish it was about China buying planes from Boeing or soybeans from our farmers," Cramer said, "but these companies are working, at least for the moment — although that could change at any time with a simple tweet from the president of the United States."
Marc Benioff, CEO of SalesForce.Adam Jeffery | CNBC
Software stocks have struggled lately, but the pullback has created some buying opportunities, Cramer said.
The software stocks with "the best fundamentals and the most reasonable valuations" are worth adding to your portfolio, Cramer advised.
Those include: Adobe, VMWare, Salesforce.com, Splunk and Twilio.
"Today the cloud stocks proved they can bounce, and after months of agony, even after this evening's Amazon shortfall ... I think you can start gradually — not all at once, don't be a hero — buying the highest quality names here," he said.
He also recommended HubSpot, Five9, Zscaler, RingCentral, and Dynatrace.
Michael Neidorff, CEO, CenteneScott Mlyn | CNBC
The U.S. judicial system will ultimately block a court ruling that questioned the constitutionality of Obamacare, Centene CEO Michael Neidorff told Cramer.
A federal appeals court in New Orleans is expected to soon hand down a decision on the legality of the Affordable Care Act, the landmark health-care law enacted under President Barack Obama nearly a decade ago, that could upend the American health system. Neidorff, who also serves as chairman and president of the managed-care company, predicts the Fifth Circuit Court of Appeals will act to protect the ACA.
"Now we think there's a chance that the appeals court could overturn" the ruling, he said in a sitdown on "Mad Money." "We know that if they don't, it's going to the Supreme Court and we think the Supreme Court will overturn it — not 5-4, it will be 6-3 or 7-2."
Nick Akins, Chairman, President and CEO of American Electric Power.Adam Jeffery | CNBC
In a one-on-one conversation with American Electric Power CEO Nick Akins, Cramer asked the chief if he ever expected the company to become a growth stock. The utility's family of companies includes AEP Ohio, AEP Texas, Appalachian Power and Kentucky Power, among others.
"Our focus is primarily providing dividends on a consistent basis for our shareholders and typically we're seen as a staid industry, it's not that way anymore," Akins replied. "It really is focused on technology deployment and being able to really reinvest in our grid to ensure that the American way of life can continue."
In Cramer's lightning round, the "Mad Money" host zips through his thoughts about callers' favorite stock picks of the day.
Conagra: Honestly, I'm just O.K. on it right now. It's been a little too up or down, hit or miss. In the food group, I am a PepsiCo guy. I think that's the straight and narrow."
Vodafone: "Too risky. It's had a very big move and at this point the yield won't support it."
Novocure: "The stock's come down a lot. I guess it ran a little too much … I like Novocure. I think it really belongs in a portfolio."
Disclosure: Cramer's charitable trust owns shares of PepsiCo, Salesforce.com, Lam Research and Twilio.
Disclaimer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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1155c90418d8bd942ecd70d52c5ad8d8 | https://www.cnbc.com/2019/10/25/mike-mayo-how-citigroup-could-double-its-stock-price-in-3-to-4-years.html | How Citigroup could double its stock price in 3 to 4 years, according to analyst Mike Mayo | How Citigroup could double its stock price in 3 to 4 years, according to analyst Mike Mayo
VIDEO1:4401:44Analyst Mike Mayo says Citigroup could double its stock price in 3 to 4 yearsClosing Bell
Citigroup could double its stock price in the next three to four years, Wells Fargo analyst Mike Mayo told CNBC on Friday.
It's hardly a guarantee, Mayo said, but if the nation's third-largest bank gets a few things straightened out, it's possible.
"As long as Citi moves in the right direction, gets the higher returns that we expect, get the improved efficiency we expect, we think the stock could improve by double over the next 3 to 4 years," Mayo said on "Closing Bell."
Citigroup was trading around $73 on Friday, when it marked a new 52-week high of $73.42. It traded in the low $70s for much of July. It was in the low $80s in January 2018.
"Citi is doing some things well, some things not," Mayo said, pointing to the fact Citi grew revenues faster than expenses in the third quarter, despite interest rate cuts that, in general, put margin pressure on the banking sector. "That's fantastic."
Then there are the negatives.
"They still have worst-in-class efficiency, returns and stock market valuation," Mayo said. "But that's an opportunity. We think Citi is rowing in the right direction, but maybe they need to get a speedboat to get where they want to get to a little faster."
Mayo's comments Friday came one day after Citigroup named a new president, Jane Fraser, who also will replace Stephen Bird as the head of global consumer banking. Bird is leaving Citi after 20 years.
"A fresh set of eyes, with Jane Fraser as head of consumer, has the potential to help," said Mayo, who is head of U.S. large-cap bank research at Wells Fargo.
Fraser had been serving as the CEO of Citi's Latin America operations.
If leadership changes don't yield the type of improvement Mayo believes is necessary, the veteran banking analyst said, a second avenue for improvement exists: activist investor ValueAct. It owns about $1 billion worth of Citi stock, Mayo noted.
"If Citi doesn't move in the right direction, Plan B could be ValueAct exerts more pressure to possibly make changes at the top," Mayo said, in reference to CEO Michael Corbat.
Mayo said the indication is that Corbat will maintain his role for the next three to five years, at which point "Jane Fraser could be the first woman as CEO of a major bank."
"But everybody has to prove their job every day, and that includes Mike Corbat," Mayo said.
At the same time, Mayo expressed optimism about Citi's current positioning, which includes other recent changes at the executive level.
"That should only be good to maybe re-engineer Citi more aggressively," Mayo said.
VIDEO1:4401:44Analyst Mike Mayo says Citigroup could double its stock price in 3 to 4 yearsClosing Bell
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db14f9ad2a6da8b3dd20c59221abad8f | https://www.cnbc.com/2019/10/25/october-jobs-growth-expected-to-be-less-than-100000-due-to-gm-strike.html | October jobs growth expected to be less than 100,000 due to GM strike | October jobs growth expected to be less than 100,000 due to GM strike
United Auto Workers members on strike picket outside General Motors' Detroit-Hamtramck Assembly plant on Sept. 25, 2019 in Detroit.Michael Wayland / CNBC
October's employment report is expected to show job growth of just 90,000 workers, due to the impact of the strike at General Motors on the company's payroll and those of its suppliers.
According to Refinitiv, the consensus of 90,000 total jobs reflects a decline of 50,000 manufacturing jobs. The Labor Department Friday reported that a total of 46,000 General Motors employees were out of work, due to the near six week long strike.
Members of the United Auto Workers were continuing to vote Friday afternoon on a tentative contract, which was expected to be approved.
The October employment report will be released next Friday at 8:30 a.m. ET.
Bank of America Merrill Lynch economists expect the report to show just 25,000 total jobs were added in October, compared to September's 136,000 jobs, which was weaker than expected. They expect the unemployment rate to remain at 3.5%.
If the October report meets the consensus target, it would be the slowest job growth since May's 62,000 jobs, but if Bank of America's estimate is correct, it would be the most sluggish growth since the September, 2017 report of 18,000 jobs. Hurricanes impacted the employment report that month.
"The direct impact from the GM strike is 46,000. That's a one-for-one reduction in the level of payrolls. On top of that, there are secondary impacts in the GM supply chain, primarily upstream from them— a lot of auto parts manufacturers and other kinds of primary metals companies," said Bank of America economist Joseph Song. "A lot of those factories are shuttered. If you add that up, you're looking at 150,000 to 200,000 reduction in payrolls."
Song said the forecast is consistent with the impact from the 1998 strike by 10,000 GM workers, which resulted in the decline of 167,000 in durable goods manufacturing payrolls. Total job growth in July of that year was 126,000, down from 232,000 the prior month.
"We would have been closer to 125,000, 150,000" for October job growth without the strike, Song said.
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a6a7260607a8fdcf308f9f1503207a84 | https://www.cnbc.com/2019/10/25/options-traders-bet-against-att-into-earnings.html | Options traders bet against AT&T into earnings | Options traders bet against AT&T into earnings
VIDEO2:5402:54Can AT&T call in an earnings victory? Options traders aren't convincedOptions Action
The earnings parade continues next week, when a series of big tech titans report.
Alphabet and Facebook are among the marquee names, but one combatant in the streaming wars could push its way into the spotlight when it kicks off the big week of reports bright and early Monday morning.
"Taking a look at the last eight quarters, AT&T has averaged moves of just under 5%. The options market is expecting a move somewhat more modest than that. Right now, it's implying a move of about 4.5%," Optimize Advisors President Michael Khouw said Thursday on "Fast Money."
The stock has performed admirably in 2019, surging more than 30% on the year. It will be a tough task to keep that momentum going through Monday's report barring some big-time numbers, and options traders don't seem convinced a show-stopping beat is in the cards.
"Despite how the stock has traded this year, a lot of the trades were bearish. Some of them were more neutral in nature," said Khouw. "We saw a seller of 2,700 of the Nov. 22 weekly 40-strike calls for just $0.18. So the seller of these calls is obviously making the bet that the stock's not going to rally through that 40-strike price, certainly not by the amount of premium they're collecting."
As Khouw would point out, that amount of premium isn't too flashy, but this bet has a high probability of paying off. Over the last 44 of AT&T's reported quarters, selling calls at least 8% out of the money — as this trader is doing — has been profitable 41 times. So, while this trade isn't exactly a get-rich-quick scheme, it's a solid bet.
It's also possible that this trader is selling these against a long position in AT&T as some extra insurance.
"We can see that the stock has obviously performed very well so far this year, but basically, [this trader] is drawing a line in the sand and saying, 'This is the level where I would be willing to get out,'" said Khouw.
AT&T was trading slightly higher in Friday's session.
Disclaimer
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87efff59f02c45da23a53176e1496efc | https://www.cnbc.com/2019/10/25/russian-soldier-has-nervous-break-down-shoots-eight-dead.html | Russian soldier has nervous breakdown, shoots eight dead | Russian soldier has nervous breakdown, shoots eight dead
Russian flag flies with the Spasskaya Tower of the Kremlin in the background in Moscow, Russia, February 27, 2019.REUTERS | Maxim Shemetov | File Photo
A Russian conscript serving in the far east of the country shot dead eight other soldiers and badly injured two others on Friday after having a nervous breakdown, the Defense Ministry said, the Interfax news agency reported.
The conscript has been detained, the ministry said, and the two injured troops are being treated in a military hospital. Their lives are not in danger.
The incident occurred at a military facility in the far east of the country in the Zabaikalsk region.
The Defense Ministry statement reported by Interfax did not say why the conscript had suffered a nervous breakdown, but said the shooting had occurred at a time when the guard was being changed at the base.
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e85aee61b1790015762c1d9c0fe61808 | https://www.cnbc.com/2019/10/25/us-review-into-origins-of-russian-probe-turns-into-criminal-inquiry.html | Justice Department review into origins of Russia probe turns into criminal investigation | Justice Department review into origins of Russia probe turns into criminal investigation
The Russian and American flags flying side by side.Mashabuba | Getty | Getty Images
A probe by Attorney General William Barr into the origins of the Russia investigation has changed from an administrative review into a criminal investigation, a person familiar with the review confirmed to NBC News.
The review is being conducted by Connecticut U.S. Attorney John Durham. The New York Times first reported Thursday that the administrative review has turned into a criminal investigation.
It's not clear when the change occurred, but the probe began in May as an administrative review.
The Times reported that the change in status gives Durham the power to subpoena witness testimony and documents, to impanel a grand jury and to file criminal charges.
More from NBC News:Trump wants agencies to ax NYT, Washington Post subscriptionsTrump campaign snaps up website name for Biden's Latino outreach effortsApple co-founder Steve Wozniak says he does not expect fully autonomous cars 'in my lifetime'
President Donald Trump has repeatedly called the Russia investigation conducted by special counsel Robert Mueller a "witch hunt."
Republicans have suggested the investigation stemmed from a plot by members of the Obama Administration and career intelligence officials, in what they call the "Deep State," to undermine Trump.
The FBI began investigating Russian election interference in July 2016. The firing of FBI Director James Comey led to the appointment of Mueller as special counsel in May 2017.
Ultimately, Mueller did not establish that the Trump campaign coordinated with the Russian election interference effort, although he documented dozens of what critics say were inappropriate contacts between Trump aides and Russians.
Michael Horowitz, the Justice Department inspector general, has conducted an investigation into the FBI's actions in launching the Russia probe.
But Barr has said he believes an IG inquiry is not sufficient to answer the questions he has about how the investigation began. In doing so, he made comments suggesting Durham had authority only a criminal investigation could provide.
Barr was criticized after he released a brief account of the Mueller report in March that critics said was inaccurate. Mueller in a letter and phone call said that Barr's four-page description what Barr called the report's principal conclusions did not fully capture the context and substance of the more than 440-page document.
That the administrative review into the origins of the Mueller probe has turned into a criminal investigation could raise alarms that President Donald Trump is using the Justice Department to go after his perceived enemies, the Times reported.
Democrats in the House are conducting an impeachment inquiry into Trump that centers on alleged attempts to pressure the president of Ukraine to announce investigations into what has been described as a conspiracy theory about interference in the 2016 election, as well as into former vice president Joe Biden and his son, Hunter.
Critics say that alleged pressure amounts to Trump using withheld foreign aid and the power of the presidency to advance his own political interests, inviting a foreign power to again interfere with the U.S. presidential election.
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a1f389eb2ff47714ca6638bf10761c8d | https://www.cnbc.com/2019/10/25/what-happened-to-the-stock-market-friday-sp-rises-flirts-with-record.html | Here's what happened to the stock market on Friday | Here's what happened to the stock market on Friday
The Dow gained 152.53 points, or 0.6%, to close at 26,958.06. The S&P 500 gained 0.4% to end the day at 3022.55. The Nasdaq Composite rose 0.7% to 8243.12. Friday came within a whisker of a banner session as the S&P 500 flirted with a record. The S&P 500 is just 0.2% from an intraday record last seen in July.
Investors cheered strong earnings and positive news on trade. Intel shares jumped on better-than-forecast results. The chipmaker also hiked its fourth-quarter guidance. Other companies reporting better-than-expected earnings included Visa and Alaska Air. Meanwhile, the U.S. Trade Representative's office said China and the U.S. were close to finalizing a phase one deal.
Intel jumped more than 8% on Friday. Amazon, however, fell 1% after posting disappointing quarterly earnings. Amazon did, however, close well off its low.
Investors will brace for the busiest week of the earnings season, with companies such as Apple and Alphabet reporting. Wall Street will also get set for a key Federal Reserve meeting later in the week as well as jobs data for October. Read more here.
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245d37dcdd6ddb2960ffa1352346f5a4 | https://www.cnbc.com/2019/10/25/wind-whipped-fires-rage-across-california-as-lights-go-out.html | Wind-whipped fires rage across California as lights go out | Wind-whipped fires rage across California as lights go out
VIDEO1:1601:16Raging wildfires in California force tens of thousands to evacuateNews Videos
Fast-growing fires throughout California forced tens of thousands of people to evacuate their homes Thursday as dry winds and high heat fed flames and fears in the state still jittery from devastating wildfires in the past two years.
The dramatic fires and evacuations — near Los Angeles and in the wine country of Northern California — came against a backdrop of power shutoffs that utility companies said were necessary to stop high winds from toppling trees or blowing debris into power lines and starting fires.
The state's largest utility, Pacific Gas & Electric Co., warned that more widespread blackouts this weekend were expected to shut power across much of the San Francisco Bay Area. It would be the third major outage this month.
Officials said they did not yet know how many homes had burned in the state, and that no immediate injuries were reported. It is not clear how any of the blazes began.
In Southern California, two fires rolled along the parched foothills north of Los Angeles, forcing at least 40,000 people to flee neighborhoods where thousands of homes have sprung up in recent decades.
At least six homes burned as the blazes swept through dry brush to the edge of communities in the Santa Clarita area. Winds gusting to about 40 mph (65 kph) pushed the flames, and enormous plumes of smoke were visible for miles. People used hoses to try to protect their properties.
Los Angeles County Fire Chief Daryl Osby said Thursday evening there was no containment of either blaze.
A garage burns at a vineyard during the Kincade fire near Geyserville, California on October 24, 2019.Josh Edelson | AFP | Getty Images
Hot and dry Santa Ana winds led Southern California Edison to cut power to more than 31,000 customers. It was considering additional power cuts to more than 386,000 customers.
In Northern California wine country, authorities ordered 2,000 people to evacuate as a wildfire burned 49 buildings and exploded to 25 square miles (65 square kilometers), whipped up by the strong winds that had prompted PG&E to impose blackouts across the region. It was 5 percent contained.
The outages affected half a million people or nearly 180,000 customers in 17 counties, most of whom lost power Wednesday afternoon and had it restored by Thursday evening, PG&E official Keith Stephens said.
While the cause of fire wasn't yet determined PG&E reported a problem with a transmission tower near the spot where the fire ignited. The company filed a report with the state utilities commission saying it found a "broken jumper" on a transmission tower around 9:20 p.m. Wednesday; it was in the same area where the fire started minutes later.
PG&E CEO Bill Johnson said it was too soon to know if the faulty equipment started the fire outside Geyserville. He said the tower was 43 years old, which is not uncommon in the industry, and had been inspected four times in the past two years and appeared to have been in "excellent condition."
Officials ordered an evacuation of Geyserville, home to about 900 people and a popular stop for wine country tourists, along with nearby residents. The blaze threatened some of the area's famed wineries and the River Rock Casino as flames raged on the outskirts of town.
VIDEO1:4801:48PG&E shutting down power due to potential wildfire riskNews Videos
A series of deadly blazes tore through the same area in Northern California wine country two years ago, killing 44 people.
Among those fleeing Geyserville was 81-year-old Harry Bosworth, who awoke before sunrise to find a firetruck and firefighters in his driveway. As he and his wife drove off, flames surrounded their driveway and their barn caught fire.
"I could see the fire coming, so we got the heck out of there," Bosworth said after escaping to his daughter's house in the neighboring town of Healdsburg.
Julia Jackson of Geyserville-based Jackson Family Wines, which owns more than 40 wine labels and thousands of acres of vineyards, posted on Instagram that her home was "burnt down to the ground."
"Stuff is just stuff. Thank God I'm alive," she wrote. Jackson, who founded a climate change conference, said such fires are why she is doing the work.
The fire started Wednesday night near the Geysers, the world's largest geothermal field, where nearly two dozen power plants draw steam from more than 350 mountain wells to create electricity, said California Department of Forestry and Fire Protection incident commander Mike Parkes.
It was fueled overnight by 76 mph (112 kph) winds in rugged terrain that was hard to reach, he said. Some people were refusing to leave despite the danger, Sonoma County Sheriff Mark Essick said.
"Please heed our evacuation order," he said in a televised news conference. "We really need to be able to fight the fire, rather than worrying about rescuing you."
The fire raged amid rolling blackouts instituted after utility electrical equipment was blamed for setting several blazes in recent years that killed scores of people and burned thousands of homes.
VIDEO1:5501:55PG&E files for bankruptcy, asks for $5.5 billion in DIP financingSquawk on the Street
Forecasts for the weekend showed possible wind gusts of up to 80 mph, prompting PG&E officials to warn of more shutdowns, likely starting Saturday for most of the San Francisco Bay Area, excluding the city itself.
"We do think that it will be the strongest offshore wind even this season, by a large margin," said PG&E meteorologist Scott Strenfel, adding that it will be "possibly the strongest offshore wind event we have seen in years."
Johnson, the PG&E CEO, said it was too soon to put a duration on the weekend outages but local officials reported they had already been notified of shutoffs expected to last from 10 p.m. Saturday to noon Monday
PG&E filed for bankruptcy protection in January as it faced billions of dollars in damages from such wildfires. The investor-owned energy company has set aside billions for insurers and wildfire victims while facing a public backlash over its handling of the outages.
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1ee95b984ad98f03a1efd588ef73ae5c | https://www.cnbc.com/2019/10/26/california-firefighters-tackle-huge-blazes-thousands-evacuated.html | California firefighters take offensive against blazes in wine country, L.A. suburbs | California firefighters take offensive against blazes in wine country, L.A. suburbs
California firefighters aided by subsiding winds took the offensive on Friday against two major wildfires at opposite ends of the state, one displacing 50,000 suburban Los Angeles residents and another roaring through Sonoma County's famed wine country.
Governor Gavin Newsom declared an emergency for both blazes, which erupted hours apart amid fierce winds this week that put emergency managers on high alert and prompted utilities to impose wide-scale power outages to curtail wildfire risks.
No injuries have been reported from either the Kincade fire in Sonoma County, about 80 miles (130 km) north of San Francisco, or the Tick fire in the Santa Clarita Valley about 40 miles (65 km) north of Los Angeles.
But the two blazes, the worst of several large wildfires across the state this week, have destroyed dozens of homes and other structures while prompting air-quality alerts in parts of Los Angeles and the San Francisco Bay area.
The dry, hot desert winds, gusting to 70 miles per hour (112 kph), gave way to light breezes on Thursday night, slowing the fires' advance and presenting crews with a chance to make significant headway against the flames.
The lull was expected to be short-lived. Forecasts called for heavy winds to return late on Saturday and persist through the weekend, leaving fire crews a narrow window to tamp down the blazes in Los Angeles and Sonoma counties.
Power companies, led by the state's largest investor-owned utility, Pacific Gas and Electric Co., also were bracing for a renewal of gale-force winds.
Even as PG&E worked to restore electricity to nearly 200,000 homes and businesses switched off ahead of this week's earlier bout of severe winds, the utility announced plans for a new round of precautionary blackouts expected to leave 850,000 customers without power across 36 counties in northern and central California.
The utility cited weather data showing the expected windstorm "could be the most powerful in California in decades."
Adding to PG&E's difficulties, the utility acknowledged on Thursday that the Kincade fire, which forced the evacuation of 2,000 people in Sonoma County after erupting on Wednesday night, began near the base of a damaged high-voltage transmission tower the utility owns.
A power shutdown of that scale, affecting millions of people, would surpass even the record outage imposed by PG&E on some 730,000 of its customers in anticipation of a previous windstorm two weeks ago.
That precautionary blackout drew sharp criticism from the governor and regulators as being too widespread as well as poorly managed and communicated to the public.
Newsom has said PG&E is largely to blame for its own predicament, arguing corporate greed and mismanagement kept the utility from upgrading its infrastructure while wildfire hazards have steadily worsened over the past decade, a function of climate change.
PG&E, which filed for bankruptcy in January citing billions of dollars in civil liabilities from deadly wildfires sparked by its equipment in 2017 and 2018, says it has since remedied problems experienced with its website and customer call center.
It has also arranged for extra personnel from affiliated energy companies and the state to assist with the spot inspections required of its de-energized power lines before electricity that has been turned off is allowed to be restored, the company said.
By Friday, the Kincade fire had charred nearly 22,000 acres (8,900 hectares) in a wine-growing region whose better-known vintners include "The Godfather" director Francis Ford Coppola, and destroyed at least 49 dwellings and other structures, officials said.
Evacuation orders included the entire town of Geyserville, an historic enclave that is home to about 900 residents and is named for geothermal features in the vicinity.
Fire crews, backed by helicopters and airplane tankers dumping loads of water and flame-retardant on the blaze, had managed to carve containment lines around just 5% of the blaze as of Friday.
Hundreds of miles to the south, crews battled to suppress the Tick fire, which erupted on Thursday and by Friday had scorched 4,300 acres (1,700 hectares) and was threatening 15,000 homes and businesses, officials said.
An estimated 50,000 people were displaced by evacuation orders in and around Santa Clarita. Poor air quality from thick smoke drifting south prompted the Los Angeles School District to cancel classes for all students in the San Fernando Valley.
"Scary, crazy. We've lived here 37 years and never had to evacuate. So, you know, you always hear about it, you always think, maybe this time. But, yeah, this is the first time," evacuee Terri Egar said.
The fire has destroyed at least six structures, Los Angeles County Fire Chief Daryl Osby said, adding that figure was expected to rise.
"This is the largest evacuation that we've had in Santa Clarita," Los Angeles County Supervisor Kathryn Barger told a news conference.
Correction: An earlier version of the map provided an incorrect count of the number of customers who may lose power this weekend.
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c7fdfa0d06867045c0210cfd04876803 | https://www.cnbc.com/2019/10/26/how-jon-najarian-got-started-in-options-trading.html | 7Qs: How Jon Najarian got started in options trading and where he sees opportunities | 7Qs: How Jon Najarian got started in options trading and where he sees opportunities
Jon NajarianScott Mlyn | CNBC
(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC's Evening Brief, .)
Options trading can be tough but they can give investors' strategies an edge. At least, that has been the case for Market Rebellion co-founder and CNBC contributor Jon Najarian.
Najarian has been trading options for nearly four decades, managing his own money as well as that of giants such as Goldman Sachs. Najarian recently sat down with CNBC and spoke about how he got started trading options, his worst trade in the business and where he sees opportunity.
Here are 7Qs for Najarian:
"I started in 1981, so this is my 38th year. I was playing football for the Chicago Bears. Played for four games, got cut and went down to the trading floor because I loved Chicago. I had never been to Chicago before, but after being there for however many weeks during training camp and playing for the Bears, I loved it. So when my agent offered me a chance to go down to the trading floor and learn how to trade, I said sure. For about three months, I hated it because I didn't understand it. I knew stocks, but I didn't know options. That was a pain in the butt. I was very unhappy even though I loved Chicago because I didn't understand what was going on. Finally, after three months, it clicked."
"You can define how much risk you take. That's one of the big pluses. In other words, if I buy an option for $1, that's all I can lose. Whereas if I buy a $70 stock I could lose $70. The other is you can leverage up. By leveraging I mean, for maybe 5% or 10% of the cost of owning the stock, you can control the stock with options. That's why they're so popular."
"We're using an algorithm that, through all the millions of trades per minute that go off, it finds where the big blocks of options are trading. Then we focus on those stocks. There are so many quotes coming from the floor because of high-frequency trading and so forth, it would be impossible to see it with the naked eye. You could see volume, but you wouldn't know if it was bought or sold. It's really important to know the difference … the fact that we can do that with our algorithm is our edge."
"Cannabis stocks are trading a lot like cryptocurrency was a year ago. Cryptocurrency had a big boom in 2017. You saw it run up from $1,000 per coin to $19,000 and then it crashed the next year. Cannabis stocks are doing that right now in 2019. They've been crashing for the last seven or eight months. They're probably down 60% or 70% from their highs. What does that mean? That means in my mind you'll see tax-loss selling into the end of the year. If I've got a loss in a stock, whether it's a cannabis stock or not, I can close that position, realize that loss and match it up against gains and not pay taxes. That's going to hold those stocks back, which is why I think they will do well in 2020 ... "We're also seeing a lot of good speculation into Black Friday in some retailers such as Target, Kohl's. I imagine Walmart and Amazon will do well, too. Mastercard and Visa, a lot of people are betting those will do well too because Americans have a little more money to spend."
"They have to have discipline and you have to have discipline in trading both to take losses and to take profits. A lot of people can do one but not the other. Some people can take profits, but they can't cut losses. Other people can cut losses but they don't pull profits off the table when they've got winners."
"Worst trade for me was on my birthday. When I turned 29, one of our traders lost a couple million dollars of my money. It was the worst and the best thing because it made us focus on why we lost the money because you always try to learn from this. We lost the money because 10 minutes before the close, somebody came into the pits that we were specialists in options and started buying puts like crazy. If somebody is doing something at the end of the day — which sometimes the do — they usually know something. They think earnings are going to be better, or there will be some news breaking after the bell. You never want to be on the other side of that trade. So they came in buying a ton of these puts, which is a downside bet, on a medical device company. The company came out with good earnings, but guided horribly and the stock traded down like 30%. We lost millions on that, but what it did is it made us ask the question: if you're coming home long or short, are you doing so because you want to? Because you think it's going to be up or down tomorrow? If that's the case, that's OK, but don't let somebody make you long or short."
"We were expanding the number of things we were going to be offering and we thought Investitute sounded too much like an institute, which obviously was intended too. But as we all the sudden started offering a room for unusual option activity and next to it a room for technical analysis and another one for futures and another for crypto, we were going to have things people could subscribe to and say 'Boy, I wish I had someone point me in the right direction?' That's what we do in those rooms. They're moderated. People can talk back and forth with the people that are moderating them. So we said, 'you know what, we're more like rebels' … so we rebranded ourselves as Market Rebellion. Knock on wood, it's going well so far. People seem to like the rebel part of it."
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43b1fa02a8278ba79f219bfdda9edeaf | https://www.cnbc.com/2019/10/26/john-kelly-says-he-warned-trump-of-impeachment-if-he-hired-a-yes-man-for-chief-of-staff.html | John Kelly says he warned Trump hiring a 'yes man' for chief of staff would lead to impeachment | John Kelly says he warned Trump hiring a 'yes man' for chief of staff would lead to impeachment
White House Chief of Staff John Kelly watches as President Donald Trump speaks during a meeting with North Korean defectors in the Oval Office at the White House in Washington, DC on Friday, Feb. 02, 2018.Jabin Botsford | The Washington Post | Getty Images
Former White House Chief of Staff John Kelly says he told President Donald Trump during his final days on the job not to hire a "yes man" to succeed him, warning the president that he risked impeachment if he did so. Kelly, in an interview with the Washington Examiner Saturday, seemed to pin responsibility for the most serious political crisis of Trump's presidency on acting White House Chief of Staff Mick Mulvaney. "I said, whatever you do — and we were still in the process of trying to find someone to take my place — I said whatever you do, don't hire a 'yes man,' someone who won't tell you the truth — don't do that. Because if you do, I believe you will be impeached," Kelly told the Washington Examiner at the Sea Island Summit, a political conference hosted by the paper.Kelly resigned as chief of staff in December 2018 after clashing with national security officials as well as First Lady Melania Trump. The retired Marine Corps general and former Homeland Security Secretary succeeded Reince Priebus, the former head of the Republican Party who spent less than a year in the position. Kelly sought to bring order to a chaotic administration, limiting access to Trump and disciplining staffers who sought to circumvent his authority. Kelly expressed regrets about leaving, saying he believes that Trump would not be facing impeachment if he had stayed.
"That was almost 11 months ago, and I have an awful lot of, to say the least, second thoughts about leaving," Kelly told the Washington Examiner. "It pains me to see what's going on because I believe if I was still there or someone like me was there, he would not be kind of, all over the place."The Democrat-controlled House of Representatives has launched an impeachment inquiry into Trump for allegedly abusing his power as president to solicit the help of a foreign country to influence the upcoming 2020 presidential election. The inquiry stems from a July phone call in which Trump pressed the president of Ukraine to investigate Joe Biden, one of the top contenders for the Democratic presidential nomination, and his son Hunter. Mulvaney, who succeeded Kelly as chief of staff, was involved in putting a hold on almost $400 million in security assistance to Ukraine before Trump's July call, which has raised concern that the White House was trying to leverage Kyiv into investigating the Bidens by offering a quid pro quo.
In a press conference last week Mulvaney added fuel to the fire when he said the money was put on hold in connection with "an ongoing investigation into the 2016 election" and the unsubstantiated theory that a hacked Democratic National Committee server is in Ukraine. The implication is that Kyiv might somehow be involved in the hack. The intelligence community and Robert Mueller's investigation concluded that Russia hacked the server as part of its campaign to bolster Trump's bid for the White House in 2016.
"Get over it -- there's going to be political influence in foreign policy," Mulvaney said during the press conference. The acting chief of staff later tried to walk back his remarks, flatly denying that there was a quid pro quo. Kelly said the president needs someone to set boundaries.
"Someone has got to be a guide that tells you [the president] that you either have the authority or you don't, or Mr. President, don't do it," Kelly told the Washington Examiner. "But don't hire someone that will just nod and say, 'That's a great idea Mr. President.' Because you will be impeached."The White House has denied Kelly's account of events.
"John Kelly never said that, he never said anything like that. If he would have said that I would have thrown him out of the office. He just wants to come back into the action like everybody else does," Trump said in a statement."I worked with John Kelly, and he was totally unequipped to handle the genius of our great President," said White House spokeswoman Stephanie Grisham.
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c9fa8ef8ac91adfebf5d0f814682fcad | https://www.cnbc.com/2019/10/26/kamala-harris-pulls-out-south-carolina-criminal-justice-forum-trump.html | Kamala Harris pulls out of South Carolina criminal justice forum over Trump award | Kamala Harris pulls out of South Carolina criminal justice forum over Trump award
California Senator Kamala Harris speaks onstage during the fourth Democratic primary debate of the 2020 presidential campaign season co-hosted by The New York Times and CNN at Otterbein University in Westerville, Ohio on October 15, 2019.Saul Loeb | AFP | Getty Images
Democratic presidential candidate Kamala Harris said Friday she won't take part in a forum being held at a historically black college in Columbia, South Carolina, this weekend after President Donald Trump was given a "Bipartisan Justice Award."
"As the only candidate who attended an HBCU, I know the importance that these spaces hold for young Black Americans," Harris, who was slated to participate in Second Step Presidential Justice Forum at Benedict College on Saturday, said in a statement.
The California senator cited the fact that only a limited number of students from the school were allowed to attend Trump's remarks as the final straw.
"Today, when it became clear Donald Trump would receive an award after decades of celebrating mass incarceration, pushing the death penalty for innocent Black Americans, rolling back police accountability measures and racist behavior that puts people's lives at risk, and then learned all but ten Benedict students are excluded from participating, I cannot in good faith be complicit in papering over his record," Harris said.
The event's organizer, the 20/20 Bipartisan Justice Center, cited Trump's work in getting the criminal justice reform measure the First Step Act passed as the impetus for the award.
Trump tweeted that it was "my true honor" to receive the award.
The president responded to Harris early Saturday, calling her a "badly failing presidential candidate."
Reporters at the site said only seven students were in attendance for Trump's address in the 275-person capacity theater, which was packed with Trump allies and supporters. Students were not allowed to ask questions.
Columbia newspaper The State reported that about half the tickets for the event were reserved for guests of the administration, while the other half were distributed locally. The school told the paper there were spots saved for up to 10 students.
Harris said she plans to hold a criminal justice roundtable elsewhere in the state Saturday, instead.
Previous winners of the Bipartisan Justice Award include Harris and Sen. Tim Scott, a South Carolina Republican.
Other Democratic presidential candidates still taking part in the forum at Benedict over the next two days are former Rep. John Delaney, Rep. Tulsi Gabbard, former Vice President Joe Biden, former Housing Secretary Julián Castro, South Bend, Indiana, Mayor Pete Buttigieg, Sens. Cory Booker of New Jersey, Bernie Sanders of Vermont, Amy Klobuchar of Minnesota and Elizabeth Warren of Massachusetts.
VIDEO3:0403:04Watch five key moments from the fourth Democratic debatePolitics
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844244ea50f805a7bf566b50a4cd40db | https://www.cnbc.com/2019/10/26/millions-in-california-are-facing-fire-danger-and-more-blackouts-pge.html | Millions in California are facing wildfire danger and more blackouts | Millions in California are facing wildfire danger and more blackouts
Firefighters battle a wind driven wildfire in the hills of Canyon Country north of Los Angeles, California, U.S. October 24, 2019.Gene Blevins | Reuters
Millions of Californians prepared Saturday to live in the dark again as the state's largest utility warned it might cut power for the third time in as many weeks because of looming strong winds and high fire danger.
Pacific Gas & Electric will decide Saturday whether to black out 850,000 homes and businesses in 36 counties for 48 hours or longer throughout the San Francisco Bay Area, wine country and Sierra foothills.
The two previous shutdowns were done amid concern that gusty winds could disrupt or knock down power lines and spark devastating wildfires.
Weather forecasts called for record strong winds to lash much of the region over the weekend, with some gusts hitting 85 mph. It might be a record wind event, the National Weather Service warned.
PG&E's warning came as firefighters battled flames in Northern and Southern California.
A blaze Thursday destroyed at least six homes in the Santa Clarita area near Los Angeles and led to evacuation orders for up to 50,000 residents, although some were allowed back home Friday night after Santa Ana winds began to ease.
To the north, firefighters raced to make progress against a blaze near Geyserville in Sonoma County before ferocious "diablo winds" returned. The fire had burned 49 buildings, including 21 homes, and swept through 37 square miles (96 square kilometers) of the wine-growing region.
Several thousand people living in small communities in neighboring Lake County were warned to be ready to evacuate if an order is given. The area was the scene of a 2015 wildfire that killed four people and burned nearly 2,000 homes and other buildings.
High winds this weekend could ground water-dropping aircraft, disperse fire retardant and drive hot embers far ahead of the flames to set new blazes, Cal Fire Division Chief Jonathan Cox said.
"You can't fight a fire that's spotting ahead of itself a quarter of a mile, half a mile, in some cases a mile ahead of itself," he said.
No cause has been determined for any of the current fires, but PG&E said a 230,000-volt transmission line near Geyserville had malfunctioned minutes before that fire erupted Wednesday night.
The utility acknowledged that the discovery of the tower malfunction had prompted a change in its strategy.
"We have revisited and adjusted some of our standards and protocols in determining when we will de-energize high-voltage transmission lines," Andrew Vesey, CEO of Pacific Gas & Electric Co., said at a briefing Friday.
The weekend forecasts detail what could be the strongest winds of the year coupled with bone-dry humidity.
"These places we all love have effectively become tinderboxes," Vesey said. "Any spark, from any source, can lead to catastrophic results. We do not want to become one of those sources."
The possible link between the wine country fire and a PG&E transmission line contained grim parallels to a catastrophic fire last year that tore through the town of Paradise, killing 85 people and destroying thousands of homes in the deadliest U.S. fire in a century.
State officials concluded that fire was sparked by a PG&E transmission line.
Asherah Davidown, 17, of Magalia and her family lost their house, two dogs and a car in the Paradise fire. She said her family was preparing for another power outage by filling the gas tank of their car and buying non-perishable foods and batteries for their flashlights.
The outages reminded her of her family's vulnerable position as they struggle to get back on their feet.
"My house doesn't have a generator so that means another weekend of sitting in the dark with no wifi, no food in the fridge and shopping in increments since we don't know how long the power may be out," Davidown said.
The continuing round of power outages made her feel somewhat vulnerable as her family tries to get back on its feet, she said.
"For the most part a lot of people feel really helpless. Their livelihoods are at the fingertips of a corporation," she said. "There's still a lot of hurt and emotional recovery. Having our basic needs repeatedly taken away is really unfortunate."
VIDEO1:5501:55PG&E files for bankruptcy, asks for $5.5 billion in DIP financingSquawk on the Street
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1075dc8f7c3df5259b6d85d2a19506a5 | https://www.cnbc.com/2019/10/26/relatives-await-answers-in-smuggling-case-39-bodies-in-uk-truck.html | After 39 found dead in truck, family reveals daughter's final text: 'I can't breathe' | After 39 found dead in truck, family reveals daughter's final text: 'I can't breathe'
Nguyen Dinh Hai holds an ID photo of his younger brother Nguyen Dinh Luong, 20, at his home on Oct. 26, 2019, in Can Loc district, Ha Tinh province, Vietnam. Luong's family fears that he may be among the 39 people found dead in the back of a container truck in southeastern England.Nguyen Dinh Hai via AP Photo
One family received a final text from their daughter saying she couldn't breathe and was dying. Another grieving family set up a makeshift altar for their missing daughter who paid $10,000 in hopes of pursuing a career as a nail technician in Britain. A desperate father is searching for his son, who frequently calls home but hasn't since last week.
They are some of the dozens of families looking for any information about their loved ones following the discovery earlier this week of 39 bodies in the back of a sealed truck in southeastern England. The investigation into the gruesome case is still in the early stages, but British officials have deemed it one of the deadliest cases of people smuggling ever reported in the country.
British police charged the 25-year-old truck driver Saturday with 39 counts of manslaughter and conspiracy to traffic people. Five people are being questioned by police, including the truck driver and three people who were arrested Friday on suspicion on manslaughter and conspiracy to traffic people. Irish police said another man was arrested Saturday in connection with the case.
British police said Saturday they have removed all the bodies from the truck and are awaiting autopsies. Identifying the victims is expected to be difficult and officials said very few documents were found with the bodies. Smugglers normally take the passports of their passengers to obscure their identities, stripping them of their names and giving them new documents when they arrive at their destinations.
Police initially believed the victims were Chinese but later acknowledged that the details were still evolving. The Vietnamese government also announced Sunday its own investigation into the deaths and set up a hotline for families.
That comes after attention shifted to Vietnam Friday, when the family of a 26-year-old Vietnamese woman released text messages suggesting she had suffocated in the truck. Relatives of Pham Tra My told the BBC they had been unable to contact the 26-year-old since receiving a text Tuesday night saying she was suffocating.
"I'm so sorry mom and dad. ... My journey abroad doesn't succeed," she wrote. "Mom, I love you and dad very much. I'm dying because I can't breathe. ... Mom, I'm so sorry."
In the village of Yen Thanh in north-central Vietnam, the mother and a sister of Bui Thi Nhung mourned Saturday as they set up an altar for the 19-year-old woman. A family friend in the U.K. told them their relative had died in the tragedy.
Nhung paid an agent thousands of dollars in hopes of finding work at a nail parlor in Britain.
"Many families in Yen Thanh got rich from money sent back by their children working abroad," said Le Dình Tuan, a neighbor who had gone to her house to check on her mother.
The father of 20-year-old Nguyen Dình Luong fears his son is among the dead. He told The Associated Press he hadn't been able to reach his son since last week, when the young man told his father he planned to join a group in Paris that was trying to reach England.
"He often called home, but I haven't been able to reach him since the last time we talked last week," Nguyen Dình Gia said. "I told him that he could go to anywhere he wants as long as it's safe. He shouldn't be worried about money, I'll take care of it."
His older brother, Pham Dình Hai, said Luong had a tattoo of praying hands on a cross on his right shoulder. The family said they shared the information with local authorities.
Desperate families are now reaching out to the media, community organizations and acquaintances in the U.K., hoping for any scrap of news. A representative for VietHome, which serves Vietnamese people in the U.K., said it had forwarded to police the pictures of almost 20 people who have been reported missing.
Bernie Gravett, a former Metropolitan Police officer who now advises the European Union on human trafficking, told the BBC that the use of false identification and the sheer numbers of people traveling to Europe make such efforts difficult.
"It's a cruel stage for the families, because hundreds if not thousands are currently on those routes, so I appreciate we are getting calls from Vietnam saying my loved one is missing and my loved one may be on that lorry (truck), but they could be on another lorry," he said.
The investigation stretches across Europe and authorities are trying to track the movements of the truck before the victims were discovered early Wednesday morning at an industrial park in Graves, England, a town 25 miles (40 kilometers) east of London.
This is just the latest smuggling tragedy as tens of thousands of people move across Europe in search of security and economic opportunity.
Groups of migrants have repeatedly landed on English shores in small boats after making the risky Channel crossing, and migrants are often found in the back of cars and trucks that disembark from the massive ferries that link France and England.
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51102065c2d6ec19d1914b6bf5c629fe | https://www.cnbc.com/2019/10/26/russian-agent-butina-returns-to-moscow-after-deportation-from-us.html | Russian agent Butina returns to Moscow after deportation from US | Russian agent Butina returns to Moscow after deportation from US
Mariia Butina, leader of a pro-gun organization, speaks on October 8, 2013 during a press conference in Moscow. The 29-year-old Russian woman has been arrested for conspiring to influence US politics by cultivating ties with political groups including the National Rifle Association, the powerful gun rights lobby. Mariia Butina, whose name is sometimes spelled Maria, was arrested in Washington on July 15, 2018 and appeared in court on July 16, the Justice Department said. STR | AFP | Getty Images
The Russian woman convicted in the United States of being a Russian agent returned to Moscow on Saturday and declared that she has no desire to go back to America.
Maria Butina was deported Friday by the United States after serving a prison sentence, arriving the next day at the Russian capital's Sheremetyevo airport. Carrying a bouquet of flowers, she rested her head on the shoulder of her father, Valery, who had come from their Siberian hometown of Barnaul to meet her.
Butina, a gun rights activist, sought to infiltrate conservative U.S. political groups and promote Russia's agenda around the time that Donald Trump rose to power. She had been in custody since her arrest in July 2018.
In brief comments to journalists at the airport after arriving on an Aeroflot flight from Miami, Butina thanked her supporters.
"I am very, very, very happy to be back home. I am very grateful to everyone who supported me — all the Russian citizens who helped and wrote me letters and donated money for my defense," she said.
Later she told the Kremlin-funded satellite TV station RT that she was not concerned that she had been banned from the U.S.
"I don't want to go back there in the near future, because if you are a Russian in the United States, you have to worry," she said.
The former American University graduate student pleaded guilty last December to conspiring to act as an unregistered agent for Russia. She admitted that she and a former Russian lawmaker worked to leverage contacts in the National Rifle Association to pursue back channels to American conservatives.
Russia's foreign ministry spokeswoman, who also met Butina at the airport, said the 30-year-old is a victim of entrenched anti-Russian attitudes in the United States.
"This is what, unfortunately, the previous U.S. administration started — trying to destroy the bilateral relationship," spokeswoman Maria Zakharova said. Since the election of President Donald Trump in 2016, Russian officials have consistently blamed the two nations' troubled relations on alleged "Russophobia" carried over from the administration of Trump's predecessor, President Barack Obama.
"She really did no harm to anybody. She's just a girl, she's just a young woman. She tried to invest her youth, if you wish, her gift, her talent, into people-to-people contacts," Zakharova said.
Butina's case was highly criticized in Russia and the foreign ministry underlined that position by using her face as the avatar on its Facebook page. That was changed to the Russian double-eagle symbol after her return.
Butina violated U.S. law because she did not report her efforts to the Justice Department, which requires the registration of lobbyists and others in the U.S. who do the bidding of foreign governments. She was sentenced to 18 months in prison but received credit for time already served.
Her lawyers said Friday that she was not a spy and that the case had nothing to do with espionage or election interference. They cast the crime as more technical than substantive.
The Butina case captivated public attention in the U.S. because it unfolded around the same time as special counsel Robert Mueller's investigation into Russian election interference, even though the two probes were entirely separate.
It also led to scrutiny of the political dealings of the powerful NRA.
VIDEO2:3502:35Senate Intelligence Committee to give joint statementClosing Bell
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0c3e22fd6cd6b064936a896901bc347a | https://www.cnbc.com/2019/10/26/stock-market-calls-of-the-week-apple-tapestry-albemarle-shopify.html | Here are the best calls of the week on Wall Street | Here are the best calls of the week on Wall Street
Tim Cook presents at the Apple launch event in Cupertino, Calif on Sept. 10th, 2019.Source: Apple
(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC's Evening Brief, .)
Here are the best analyst calls on Wall Street this week:
Morgan Stanley raised its price target on Tuesday to a street high $289 and said that the Street was too negative on the impact of Apple TV+ on the company. The firm said its analysis shows a "different" story where Apple TV+ could lead Services growth to 20% in 2020.
"The market is skeptical that Apple TV+ will be an NPV+ investment. Our in-depth analysis tells a different story with TV+ accelerating Services growth to 20% in FY20 and becoming accretive to EPS in FY21, assuming just 1 in 10 AAPL users subscribe by FY25."
Baird analysts said on Wednesday that despite the pullback in the software space, Shopify was "still killing it." The heavily owned, highly valued software sector has taken a hit lately as investors question whether they have to pay such a premium for the growth now that the trade war has cooled down. The e-commerce company which helps businesses sell online, on social media, or in person is due to report earnings on Tuesday.
"Still 'Killing It' Despite Software Sector Pullback. We expect Shopify Q3 results slightly above consensus expectations based on continued strong levels of brand and merchant adoption and overall healthy U.S. e-commerce trends. We note the recent acquisition of 6 River Systems will reduce the Q4 pro-forma margin outlook, although we expect the expense of building out Shopify's Fulfillment Network to be offset over time by incremental revenues. Shares remain under pressure with the rotation away from high-growth software names, but we believe company fundamentals remain strong."
At a time when some analysts are getting bearish on the upcoming holiday season, Wells Fargo called Tapestry a "top contrarian idea," on Monday. The company said it liked the stock for a variety of reasons but mainly they noted the stock was "as cheap as it's ever been." Tapestry is a luxury fashion company and the parent of Coach, Kate Spade, and Stuart Weitzman. The company is due to report earnings on November 5.
"We view TPR as the most compelling contrarian name under coverage today (as we believe sentiment is beginning to turn and the setup on the story from here is very favorable, in our view). With shares materially underperforming our space YTD (TPR -25% vs. group +8%), we see brighter days ahead. Simply put, we view the setup for the stock as very attractive for a litany of reasons. .. .All in, the stock is as cheap as it's ever been, management changes have been made, the "cash cow" piece of the business is actually healthy and investors are essentially getting a call option on both Weitzman and KATE."
As lithium stocks have fallen out of favor in the last few years, Goldman Sachs said that Albemarle was a "compelling" value in the space. Albemarle is a chemical company which manufactures lithium and other products. In the note on Tuesday the firm said that Albemarle was "unique" and that "current negative" sentiment has run opposite to the company's fundamentals.
"This combination of sharp spot price declines and elevated investor skepticism makes the setup for a contrarian call compelling. We further note that the current negative sentiment and spot price plunge have run counter to ALB's fundamentals, where consensus earning estimates have remained relatively flat, suggesting the majority of its share price fall represents multiple erosion not an earnings shortfall. We continue to believe that ALB remains unique in the lithium industry, as the company offers a differentiated battery-grade commercial expertise and has exposure to some of the lowest-cost and diversified raw material sources in the world."
Nomura initiated the cybersecurity technology company with a buy rating on Wednesday. The firm said the company is "disrupting" the industry and thinks CrowdStrike's top-line growth will "exceed" expectations for many years.
"CrowdStrike is disrupting the endpoint security market with the introduction of its modern, cloud-native security platform, launched just eight years ago. .. .Superior proprietary technology, rapid customer adoption, and CRWD's open architecture will continue to drive greater adoption both within security and beyond. Thus, we expect top-line growth to continue to exceed expectations for several years to come."
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7630dac55bf38ba81dc85fa229eaed4e | https://www.cnbc.com/2019/10/26/tesla-q3-earnings-call-lacked-details-on-service-panasonic-margins.html | Tesla did not talk about three important things on its triumphant Q3 earnings call | Tesla did not talk about three important things on its triumphant Q3 earnings call
SpaceX owner and Tesla CEO Elon Musk gestures during a conversation at the E3 gaming convention in Los Angeles, June 13, 2019.Mike Blake | Reuters
It improved production on the Model 3 from last year while cutting operating expenses, and turned a profit that surprised investors. It said it's ahead of schedule on its Shanghai factory and production of its Model Y crossover. The news sent its stock up almost 30% for the week.
But Tesla was silent or vague on three important matters: service, its Panasonic partnership, and precisely how the company improved its gross margins.
On the last earnings call of 2018, CEO Elon Musk said that customer service would be a personal priority in 2019. But Tesla has not ramped up service locations to deal with the higher volume of cars it has been selling, and higher number of its cars that are aging in the field.
Last year, Tesla delivered 245,240 vehicles to customers. The year before it delivered just over 100,000 vehicles. The company is promising to deliver more than that -- at least 360,000 vehicles -- in 2019, and has already delivered around 255,000.
But Tesla stores and service centers now number 413, according to this week's quarterly update, a paltry 18% increase from a year ago.
Instead, Tesla has opted to invest in its mobile service fleet -- technicians who come to the customer's car to fix what they can, wherever it is parked. Its mobile service fleet has increased from 373 to 719 over the past year, a 93% bump, according to the Q3 update.
Those Tesla "rangers," as they were originally called, can't fix everything. Each mobile service technician needs to spend a good portion of their time in transit to the customer's car, as well. That means they can't complete as many jobs in a day as a team of technicians in a shop.
Many customers already have to wait days, if not weeks, to get their vehicles repaired by Tesla, according to numerous CNBC interviews with customers and widespread reports. And while they wait, only some get loaner Teslas -- others get rental car or ridesharing credits with services like Uber.
Failure to improve service could hurt Tesla's reputation, which suffered after Consumer Reports downgraded the reliability of the Model 3 in February. Customers willing to pay more than $40,000 for a compact SUV, like Tesla's forthcoming Model Y, will expect service to be readily available, without long drives or wait times.
Tension between Tesla and its biggest partner, Panasonic, has ratcheted up in recent quarters.
Earlier this year, Musk blamed the Japanese battery cell supplier for missed goals and production woes, saying "It was physically impossible to make more Model 3's in Q1 due to cell constraints."
tweet
Soon thereafter, Panasonic and Tesla announced they would freeze their plans to expand battery-making capacity at their massive Gigafactory plant in Sparks, Nevada. In press interviews, Panasonic executives expressed hesitation about working with Tesla in any similar arrangement for their new Gigafactory in Shanghai.
Last quarter, Tesla acquired a battery tech firm called Maxwell. Then, Musk announced plans for a "battery day" to show investors how much of an edge his car company has on electric vehicle battery tech (it has not yet happened). Tesla's ambitions to make its own battery cells were revealed, along with a secret battery R&D lab, in June. And recently, Tesla acquired a Canadian battery manufacturing firm called Hibar.
By failing to discuss the Panasonic relationship on the Q3 call, Tesla left shareholders with very little visibility into whether or not it has secured the long-term supply of battery cells it expects to need to ramp up Model 3 production in Shanghai.
Tesla set a personal best in the third quarter of 2019 by delivering more cars than it ever had before in a single period, but those cars had a lower average sales price than cars they sold in previous quarters. That helped push its automotive revenue down 12% year-over-year, and remain about flat versus the previous quarter.
Yet, Tesla was able to improve its automotive gross margins by a few points over the previous quarter, from 18.9% to 22.8%, which approaches the 25.8% automotive gross margins they achieved at the same time last year.
The company did not explain how it achieved this margin improvement, however.
On the earnings call, CFO Zachary Kirkhorn said revenue recognition from Tesla's Autopilot software upgrades, including the launch of a Smart Summon feature in the third quarter, contributed $30 million to its bottom line. There were also other "non-recurring items" that contributed to profitability, but the company didn't explain further.
Here's what Kirkhorn said about margins:
"We achieved these improvements through higher production volumes on S, X and Model 3, enabling better fixed cost absorption. We realized improvements in labor hours per vehicle as well as other costs, such as warehousing, logistics, delivery and import related items. We are also making continued progress reducing material costs, including commercial negotiations with suppliers."
Other details would help investors understand whether this quarter's margin improvement paves the way for sustained profitability. For example, what kind of deals did Tesla get from their suppliers? Were they rebates, or more lasting discounts? How did the auto maker lower material costs, are they changing vendors or deciding some components aren't necessary? And if Tesla needs "fewer labor hours per vehicle," does that mean it has finally mastered robotics and automation in its factories? And how will that impact headcount?
Tesla gave investors an ear full of good news in a third-quarter earnings call on Wednesday.
Some of these details may follow in the company's quarterly earnings filing with the SEC, which could drop any time.
WATCH: CNBC's full interview with Tesla Chairwoman Robyn Denholm
VIDEO12:5912:59Watch CNBC's full interview with Tesla Chairwoman Robyn DenholmSquawk Box
Follow @CNBCtech on Twitter for the latest tech industry news.
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930521c465a786708a557c891e3c4cc8 | https://www.cnbc.com/2019/10/26/trump-mattis-screw-amazon-10-billion-pentagon-cloud-contract-jedi.html | Trump told Mattis to 'screw Amazon' out of $10 billion Pentagon cloud contract, insider account claims | Trump told Mattis to 'screw Amazon' out of $10 billion Pentagon cloud contract, insider account claims
President Donald Trump welcomes James Mattis as they pose for a photo before their meeting at Trump International Golf Club, in Bedminster Township, New Jersey.Drew Angerer | Getty Images
An upcoming book on James Mattis' tenure as secretary of Defense claims President Donald Trump told Mattis to "screw Amazon" out of a $10 billion cloud contract for the Pentagon.
The Joint Enterprise Defense Infrastructure, or JEDI, contract was awarded to Microsoft late Friday evening, sending shares of Microsoft stock up more than 3%.
Early in the process market leader Amazon was seen as the favorite, then President Trump said in July that he was looking into the contract after companies protested the bidding process.
VIDEO4:5104:51Kara Swisher: Microsoft's JEDI contract will likely be challenged in courtSquawk Alley
In the summer of 2018, President Trump called Mattis and directed him to "screw Amazon" out of a chance to bid on the JEDI contract, according to the forthcoming book "Holding The Line: Inside Trump's Pentagon with Secretary Mattis." The account was written by Guy Snodgrass, who served as a speechwriter for Mattis.
"Relaying the story to us during Small Group, Mattis said, 'We're not going to do that. This will be done by the book, both legally and ethically,'" Snodgrass writes. CNBC has reviewed the relevant passages of the book.
The Department of Defense and the White House could not be immediately reached for comment. Neither Amazon nor Microsoft were immediately available for comment on the president's alleged order.
The contract is capped at $10 billion over the next ten years. If it ends up being worth that much, it would likely be a bigger deal to Microsoft than it would have been to Amazon. Microsoft does not disclose Azure revenue in dollar figures but it's widely believed to have a smaller share of the market than Amazon, which received $9 billion in revenue from AWS in the third quarter.
"We're surprised about this conclusion," an AWS spokesperson told CNBC in an email on Friday, after the contract was awarded to Microsoft. "AWS is the clear leader in cloud computing, and a detailed assessment purely on the comparative offerings clearly lead to a different conclusion. We remain deeply committed to continuing to innovate for the new digital battlefield where security, efficiency, resiliency, and scalability of resources can be the difference between success and failure."
VIDEO4:3504:35Microsoft beats Amazon for $10B defense cloud contractSquawk Alley
Wedbush analyst Dan Ives called the deal a "game changer" for Microsoft, writing in a note to clients that the deal "will have a ripple effect for the company's cloud business for years to come." He also said that he expects Amazon to challenge the outcome in court, but for Microsoft to prevail.
Amazon CEO Jeff Bezos has been a constant source of frustration for the president. Bezos owns The Washington Post, which Trump regularly criticizes for its coverage of his administration. Trump also has gone after Amazon repeatedly on other fronts, such as claiming it does not pay its fair share of taxes and rips off the U.S. Post Office.
-- CNBC's Kate Fazzini and Jordan Novet contributed to this report.
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6108266921ccac8c9c6d729583a824dc | https://www.cnbc.com/2019/10/27/inside-the-secret-us-mission-that-took-al-baghdadi-out.html | Inside the secret US mission that took al-Baghdadi out | Inside the secret US mission that took al-Baghdadi out
An image grab taken from a video released on July 5, 2014 by Al-Furqan Media shows alleged Islamic State of Iraq and the Levant (ISIL) leader Abu Bakr al-Baghdadi preaching during Friday prayer at a mosque in Mosul.Al-Furqn Media | Anadolu Agency | Getty Images
The following narrative is based on President Donald Trump's comments, national security adviser Robert O'Brien's comments on "Meet the Press," and NBC News reporting from multiple U.S. officials familiar with the raid.
WASHINGTON — At around 5 p.m. Saturday, President Donald Trump and his top national security officials gathered in the White House situation room to watch what would be the most consequential military operation of his presidency so far.
The day before, Trump had given the order to launch a raid to capture or kill the founder and leader of ISIS, Abu Bakr al-Baghdadi, after options were presented to him on Thursday.
The world's most-wanted terrorist had taunted the Americans in a September audio message proving he was still at large, six years after the U.S. began hunting him. But now, thanks in part to information from the same Syrian Kurdish allies Trump is accused of abandoning, U.S. analysts believed they had found him.
The CIA had been honing the intelligence for weeks. The man believed to be Baghdadi was under U.S. surveillance, and his movements were being tracked.
The American commandos who conducted the operation had been staging in the region since last month. Some of them were launched from the Iraqi Kurdish city of Irbil, which was liberated from Saddam Hussein in 2003 in a war Trump says was a terrible mistake.
Trump was presented with a different set of circumstances than President Barack Obama was when he decided to launch the raid into Pakistan that killed Osama bin Laden. Back in 2011 the CIA wasn't sure bin Laden was there, and the Pakistanis were not told. If the tall man in that compound wasn't bin Laden, it would have been a hard thing to explain. If the Pakistanis defended their territory, there could have been a bloodbath.
In this case, there was no hostile force nearby, given that Trump had received acquiescence from the Russians and Turks, who controlled some of the airspace the U.S. needed to fly through. But the president still had to green-light a risky operation that could get Americans killed. That was his biggest concern, he said later, and he was gratified that no American was injured, though a military dog was wounded.
Trump knew what it was to send men to their deaths; a Navy SEAL was killed during a controversial raid in the first month of his administration in Yemen.
This was not the first attempt to get the ISIS leader. Two or three previous launches had been canceled, Trump said, because Baghdadi changed his mind about where he was headed.
The strong implication was that the U.S. either had a human source in his entourage or was monitoring his communications.
"Finally we saw that he was held up here. We knew something about the compound," Trump told reporters at the White House Sunday.
There was a tunnel that could have allowed an escape, but "we had that covered," Trump said. Breaking with past precedent, the president decided against briefing all Congressional leaders in advance of the operation, because he was concerned it would leak.
The helicopters lifted off moments after the White House meeting assembled. Trump and his team — including Vice President Mike Pence, National Security Adviser Robert O'Brien and Gen. Mark A. Milley, the chairman of the joint chiefs of staff — watched a video feed with a definition that the president said was as clear and detailed as one might see in a mall cineplex.
"Absolutely perfect, as though you were watching a movie," Trump said.
What they saw or later learned, as Trump told it, played out just as a Hollywood script-doctor might have written it.
U.S. aircraft flew low and fast for about an hour and 10 minutes over airspace controlled by Turkey and Russia. Officials assumed those flights would be uneventful, but there is always a concern when flying over an adversary armed with sophisticated air defenses.
As Trump explained it, eight helicopters were met with gunfire as they approached the compound, and returned fire to neutralize the threat.
The choppers landed, and "a large crew of brilliant fighters" emerged. They blew holes into the building to avoid a booby-trapped main door.
They then began capturing fighters, killing anyone who resisted. "A large number" of Baghdadi's men were killed, Trump said. Eleven children were moved to a safe location.
Chased by U.S. special operations dogs, Baghdadi fled into what the president called a dead-end tunnel with three children. The dogs' names and breeds are classified. The commandos had a robot on scene for such circumstances, but it wasn't deployed.
"He was screaming, crying and whimpering," Trump said. "He was scared out of his mind."
Baghdadi then detonated a suicide vest, ending all four lives and collapsing the tunnel.
The commandos spent two hours total in the compound, collecting "highly sensitive" material, Trump said.
To be certain of Baghdadi's identity, the operators had a team onsite with samples of his DNA. How they got those samples was not disclosed.
They conducted a field test on the mutilated remains, to prove they had the right target.
"100 percent Jackpot, over," was the radio call from the special operations commander, once the DNA match was confirmed.
The founder of the world's most fearsome terror group was no more.
The implications for the fight against ISIS were uncertain, experts said, given the new instability in the region in the wake of Trump's decision to withdraw U.S. troops. But this was without a doubt a big counterterrorism win.
"He died like a dog," said Trump. "He died like a coward."
Read more from NBC NewsFifteen stunning moments from Trump's announcement of al-Baghdadi's deathTrump thanks Kurds for role in U.S. operation that killed ISIS leader Abu Bakr al-BaghdadiISIS leader Abu Bakr al-Baghdadi killed in U.S. raid in Syria, Trump confirms
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f2dc9533f91d1d703a292c568e373da6 | https://www.cnbc.com/2019/10/27/semis-could-rally-20-to-30percent-within-two-years-investor-paul-meeks.html | Semis could rally up to 30% within two years, tech investor Paul Meeks predicts | Semis could rally up to 30% within two years, tech investor Paul Meeks predicts
VIDEO2:1402:14'You have to play the game now to benefit,' semiconductor bull Paul Meeks saysTrading Nation
The investor who ran the world's largest tech fund during the dot-com boom predicts the semiconductor win streak is just beginning.
Paul Meeks, who came into the year short semis, is now actively putting money to work in the space because he believes the group could surge 20% to 30% within two years.
His reasoning: chip makers are making meaningful progress working through excess inventory.
"You have to be in early," he told CNBC's "Trading Nation" on Friday. "You have to play the game now to benefit."
Meeks, who's now a portfolio manager at Independent Solutions Wealth Management, emphasizes semis are highly cyclical. So when they move, it's much earlier than the rest of the tech space.
"The call that I'm making in semiconductors is not that the fundamentals are back to the races," he said. "I actually think we're troughing now in semiconductors and we won't see a re-acceleration of topline growth for another six to nine months."
It appears Wall Street is encouraged by what it sees, too. The VanEck Vectors Semiconductor ETF and the iShares PHLX Semiconductor ETF both hit all-time highs on Friday.
According to Meeks, another major upside catalyst would be an end to the U.S.-China trade war in the coming year.
"Part of it has been exacerbated by all of the uncertainties dealing with China tariff and trade," added Meeks.
His top pick among the semis is Micron.
Meeks estimates the stock price could soar another 50% to 60% within two years because valuations are so low. He also lists the company's earnings power and memory chip domination as reasons to buy the name.
"Micron and some of these other companies that have the massive leverage can really do well next year when we have a confirmation of the rebound," Meeks said.
Micron shares surged more than 10% last week, and are up 50% so far this year.
The company is expected to post quarterly numbers in December.
Disclosures: Paul Meeks holds positions in the stocks discussed.
Disclaimer
VIDEO4:3404:34Now is the time to put money to work in semis, investor Paul Meeks saysTrading Nation
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07fbacd8d8f0b6541fb497aab67ecce5 | https://www.cnbc.com/2019/10/28/a-3-step-guide-to-mastering-singapore-street-food.html | A 3-Step guide to mastering Singapore 'street food' | A 3-Step guide to mastering Singapore 'street food'
Singapore may be referred to as Asia 101, but it's common to arrive at this culinary paradise and get schooled by the local food scene.
Unlike other Asian cities, Singapore's "street food" is no longer found on the streets. Starting in the late 1960s, the government moved to formally resettle street vendors into organized centers with seating and strict sanitation requirements.
But where to start?
Here is a guide to satisfy the most apprehensive to the most adventurous of palates.
Food courts are located in malls, office buildings and shopping centers around the island. They are clean and air-conditioned, and for many visitors, they're the easiest way to sample local cuisine. Food Republic, Kopitiam, Koufu and Food Junction are some of the food court operators with multiple outlets in Singapore.
To get started, consider:
Fitra Hainanese Chicken Rice at Wisma Atria — As the name implies, Fitra (which is halal) serves up Hainanese chicken rice, the unofficial dish of the city-state. A generous helping of rice is cooked with chicken stock, garlic, ginger and pandan leaves and then served with either poached or roasted chicken. Small dishes of dark soya sauce, chili and garlic accompany the dish, with cucumber spears on the side.
Hainanese chicken rice in Singapore.Nuttapol Puntavachirapan | Moment | Getty Images
HK Roast, Food Republic at Manulife Centre — Char siew wonton noodles are a savory dish of noodles, green vegetables (often cai-xin), roasted pork and boiled wontons filled with pork. It comes dry or in a soup — state your preference when you order.
A plate of Chinese noodles with pork char siew and wontons sold in local food centre of Singapore.Calvin Chan Wai Meng | Moment | Getty Images
Indian Express, Rasapura Masters at The Shoppes at Marina Bay — This spot is popular for naan (Indian flat bread cooked in a tandoor). Choose it plain or with butter, garlic or cheese, tear into small bites and dunk it into a dish of butter chicken.
Hawker centers are open-air food markets, usually with covered seating. Certain hawker centers, due to their location or reputation, are popular with tourists, including:
Lau Pa Sat — Every night at 7:00 p.m., a street adjacent to this center is closed to cars and filled with tables and stools so customers can eat under the night sky in the Central Business District. These evenings are famous for satay (stall Nos. 7 and 8), which are small sticks of barbecued lamb, chicken or beef dipped in peanut sauce.
A grill and skewer expert at work at Lau Pa Sat hawker center's famous Satay Street in Singapore.Aaron Massarano | iStock | Getty Images
Newton Food Centre — Arguably the most popular center of all (even before it was featured in "Crazy Rich Asians"), this spot is famous for many dishes, including the carrot cake at Heng (stall No. 01-28), a 2018 Bib Gourmand Winner. Not to be confused with the Western dessert, this is a savory dish of steamed white radish and rice flour fried with egg, preserved radish and spices. Order it white (plain) or black (fried with dark soy sauce) and with or without chili.
Chai tow kway, or carrot cake, from a hawker centre in Singapore.GolePhotography | iStock | Getty Images
Glutton's Bay, Esplanade — For a local twist on a classic bar food, try the prawn paste chicken at Hong Kong Street Old Chun Kee stall. This dish of chicken wings fried with spices and fermented prawn paste is great to share with friends or wash back with a Tiger beer. This hawker center overlooks Marina Bay and has convenient public transportation options nearby. If you're lucky, there may be a free outdoor concert courtesy of the Esplanade too.
If you've mastered (or have no interest in) the touristy spots and are looking to go local, there is:
Adam Road Food Centre —Selera Rasa Nasi Lemak serves nasi lemak, a Malay breakfast favorite. The rice, cooked with coconut and pandan, is served with small, fried ikan bilis (anchovies), peanuts, a fried egg, sambal chili and cucumber slices. You can add on fried chicken, otak (fish paste and spices grilled in a banana leaf), fish cake or fried fish, depending on your taste.
BBQ stingray with spring onions and red chillies paste.tang90246 | iStock | Getty Images
Chomp Chomp Food Centre — This center in Serangoon Gardens is best visited in the off-hours, as it's uber popular with locals. Hai Wei Yuan B.B.Q. (stall No. 1), has excellent stingray, which is slathered in sambal chili and barbecued in a banana leaf.
Tiong Bahru Food Centre — For a touch of sweet, there's Tian Tian Yuan Dessert House. Ice desserts are cool and refreshing, and you'll find over 50 options here with a variety of toppings like flavored syrups, colored jellies, creamed corn and condensed milk.
Ice kachang, a shaved ice dessert.Studio Paggy | IZA Stock | Getty Images
Traditional ice kachang is a good place to start, as is red ruby (shaved ice with coconut milk and jellied water chestnuts) or aloe vera sea coconut ice.
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e5cc4a0dbe97effbe3265f9ab22bb78a | https://www.cnbc.com/2019/10/28/after-new-record-these-are-the-stocks-wall-street-thinks-will-lead-the-next-market-leg-higher.html | After new record, these are the stocks Wall Street thinks will lead the next market leg higher | After new record, these are the stocks Wall Street thinks will lead the next market leg higher
VIDEO6:0406:04The S&P just hit a record high—Here's what four experts are watching nowTrading Nation
The S&P 500 hit an all-time high on Monday, but investors are already wondering who's going to lead the next leg of the bull market.
The index topped the 3,027.98 level, thanks to Apple, UnitedHealth and J.P. Morgan, the largest point contributors to the new record.
Now, analysts see social media giant Facebook, Disney and red-hot software company Salesforce taking over.
CNBC screened the largest 50 companies in the S&P 500 and found which stocks have the most upside to their consensus 12-month price target set by analysts on Wall Street. In other words, these are the big U.S. stocks analysts believe will be up the most in the next one year.
Despite the recent underperformance of growth stocks, specifically the so-called FANG (Facebook, Amazon, Netflix and Google) stocks, data shows Wall Street is bullish on a recovery in the group. Netflix, Facebook and Amazon are all expected to rally, and with such large market values, these stocks can certainly move the needle on the index.
Shares of Jeff Bezos-led Amazon tanked last week when it reported earnings that fell short of Wall Street's expectations, as a return to a heavy investment cycle cut into the e-commerce giant's profitability. However, the stock is only down 1% since the disappointing results. Facebook reports third-quarter earnings after the bell on Wednesday.
Salesforce has remained relatively insulated from the recent pullback in software stocks. Health-care company Merck reports earnings before the bell on Tuesday.
PayPal surged 8% last week after growth in its Venmo business led the company to the strongest earnings results in at least a year.
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05ac78196779b05c5ad1da7450e17a07 | https://www.cnbc.com/2019/10/28/alphabet-could-take-out-all-time-highs-earnings-says-top-technician.html | Alphabet could take out its all-time highs after earnings, says top technical analyst | Alphabet could take out its all-time highs after earnings, says top technical analyst
VIDEO7:1307:13Tech earnings on deck, here's one name that could see a breakoutOptions Action
The biggest earnings week in tech is upon us, with names like Alphabet, Apple and Facebook gearing up to report quarterly numbers.
It has been a year to remember for the sector, with the XLK Technology ETF that tracks the space up nearly 35%. That's almost double the gains of the broader markets, and when Alphabet reports Monday afternoon, those gains could get even bigger. according to one top technical analyst.
"This is one of the few big, big, super-cap names left, and I would say this is going to be one of the good ones, rather than one of the poor ones," Cornerstone Macro's Carter Worth said Friday on CNBC's "Options Action."
Worth sees a bullish pattern developing over the last 12 months in Alphabet.
"If you wanted to, right, you can call this kind of thing a 'cup and handle,'" said Worth, "People like that setup, meaning that you approach a high, you can't do it, you back away, but you back away and make a shallower low, and then reapproach it. There's a lot of tension to that kind of setup for, ultimately, exceeding the high."
It's not just the technical setup that has Worth feeling bullish on Alphabet. After nearly a half-decade of underperformance relative to the broader tech space, there are signs that a breakout might be on the cards.
"It is one of the biggest constituents in the Nasdaq 100, and it is making relative lower lows, like this, for three years. I think this is at an end. Google is likely to catch up, to break out," said Worth.
So, if Alphabet does catch up by way of an earnings bounce, where could it end up? According to Worth, the next key level for the tech giant is its all-time high.
"This all-time high, which was in April is $1,296-$1,297. We closed at $1,264. A 2.5% move would get you there, and that's probably what an earnings beat, or a good outcome would do, which would get you a breakout above the tops that have been in effect for, basically, the last two years," said Worth.
Alphabet was trading about 1.5% higher Monday morning.
Disclaimer
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8d1764e8f133ac88b4c1036a830b2a53 | https://www.cnbc.com/2019/10/28/asia-markets-oct-28-us-china-phase-one-deal-hsbc-earnings-and-oil.html | Asia Pacific markets up, yuan strengthens as optimism on US-China trade rise | Asia Pacific markets up, yuan strengthens as optimism on US-China trade rise
Major Asia Pacific markets were in positive territory by Monday afternoon, as the U.S. and China appeared close to finalizing a "phase one" trade deal.
The Shanghai composite was up 0.85% to close at 2,980.05, while the Shenzhen composite jumped 1.53% to 1,657.38. Hong Kong's Hang Seng index bounced 0.76% in the final hour of trade.
Over in Japan, the Nikkei 225 climbed 0.30% to 22,867.27, and South Korea's Kospi gained 0.27% to close at 2,093.60.
Australia's S&P/ASX 200 traded flat to close at 6,740.70. Major miners gained by the close: Rio Tinto trimmed some earlier gains to trade up 0.48%, Fortescue Metals jumped 2.15%, while BHP Billiton rose 1.12%.
Markets in Singapore, India, Malaysia and New Zealand are closed for holidays.
Overall, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.44%.
Europe's largest lender HSBC reported third-quarter pre-tax profits that fell 18% year-on-year to $4.8 billion in the quarter that ended September. Still, the bank said its before-tax profit in Asia climbed 4% from last year, noting a "resilient performance in Hong Kong."
HSBC earns most of its profits from Hong Kong, which has been hit by unrest for months. The city accounted for more than half the bank's pre-tax profits in the first half of this year. HSBC shares tumbled 2.76% in the afternoon.
Hong Kong-based insurer AIA, which also posted results on Monday, said in a statement it has already been affected by a "challenging operating environment, particularly in relation to current events in Hong Kong." Its value of new business, which tracks expected profits from new premiums, was up 1% to $980 million in the three months to September 30.
Its stock surged 3.61% by the afternoon.
The city's Financial Secretary Paul Chan said in a blog post on Sunday, according to a Reuters report, that Hong Kong is now in recession and it is "extremely difficult" to achieve the government's original forecast of 0% to 1% annual growth made before the protests.
Chan added that preliminary estimates for third-quarter growth on Thursday would show two consecutive quarters of contraction — the technical definition of a recession.
On the U.S.-China trade front, the Office of the U.S. Trade Representative said Friday the countries have "made headway on specific issues and the two sides are close to finalizing some sections of the agreement."
On Saturday, China's Commerce Ministry said both sides have agreed to properly address core issues, according to a Reuters report. The ministry said in a statement both sides have confirmed that the U.S. will import cooked poultry from China, while Beijing will lift a ban on U.S. poultry.
Earlier this month, U.S. President Donald Trump had announced both sides have reached a "very substantial phase one deal," in trying to push for an end to the dispute that have caused several rounds of tariffs on hundreds of billions of dollars worth of each other's goods.
"What's not yet clear yet is if both sides have agreed that even if the planned December 15th tariff increases won't go ahead if Phase-One is agreed, whether there will be any wind back of the higher tariffs imposed on September 1st, something China was said to be demanding toward the end of last week but we doubt the US is ready to concede on," wrote Ray Attrill, head of foreign exchange strategy at the National Australia Bank, in a note Monday.
The offshore yuan strengthened to 7.0570 against the dollar on Monday afternoon around 3.12 p.m. HK/SIN, from a high of 7.0768 last week before those developments. The onshore yuan was at 7.0584, from a high of 7.0863 last week.
Meanwhile, the trade war continued to take its toll on China, with profits at the country's industrial sector falling 5.3% in September year-on-year, according to data from the the National Bureau of Statistics on Sunday.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.804, down from an earlier high of 97.894.
The Japanese yen traded at 108.70, strengthening from 108.79 seen earlier. The Australian dollar changed hands at $0.6817, following a low of $0.6808 seen earlier.
Oil prices declined in the afternoon during Asia hours with latest data showing that China's economy continued to slow. Global benchmark Brent edged down 0.23% to $61.88 per barrel. U.S. crude was down 0.26% to $56.51.
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a8245fbc00dfc5123bc019eaf533388e | https://www.cnbc.com/2019/10/28/beyond-meat-is-down-32percent-this-monthheres-the-key-level-to-watch.html | Beyond Meat is down 32% this month—here's the key level to watch, according to the chart | Beyond Meat is down 32% this month—here's the key level to watch, according to the chart
VIDEO3:4403:44Beyond Meat drops down to $100Power Lunch
The bears are biting into Beyond Meat.
Shares of the fake meat company are down over 32% for the month of October, adding to a nearly 55% drop from the stock's July highs.
Friday's nearly 1% decline added to the pain, leaving investors wondering what to do with the stock ahead of its third-ever earnings report Monday and its IPO lockup expiration — after which roughly 80% of its outstanding shares will become eligible to trade on the public market . The latter happens Tuesday.
One such pro — JC O'Hara, chief market technician at MKM Partners — foresees more downside.
"We saw a parabolic rise" in the stock in July, O'Hara told CNBC's "Trading Nation" on Friday, pointing to a chart of Beyond Meat since its May 2 initial public offering. "The stock went from [$]25 to 240, ran out of buyers at 240, and you started to see some profit-taking slowly occur."
Beyond Meat closed at $100.81 on Friday, still up over 300% from its IPO price.
"That profit-taking was relatively calm, but that really started to accelerate a few weeks ago," O'Hara said. "And — no coincidence — it started to accelerate as Beyond Meat broke technical support at 140. That is a level where over the last few months buyers have historically shown up and supported the stock. Buyers failed to show up this time."
Selling accelerated as a result, leading to several painful months for the company's shares. And while the stock has filled in the gap higher than it made in June, it's likely to spend some more time declining, O'Hara said.
"I'm looking for $85," the technical analyst said. "That is where I think the next support level should start to pick up."
That would be a nearly 16% decline from Beyond Meat's Friday closing price.
Boris Schlossberg, managing director of FX strategy at BK Asset Management, said that while the short-sellers might be feeling "gleeful" now, the bull case for Beyond Meat could shape up in the near future.
The fate of Beyond Meat and rival Impossible Foods is really going to come down to taste, Schlossberg said in the same "Trading Nation" interview..
"The bottom line is that Beyond and Impossible have been the first real true replicators of the taste of meat," he said. "The value here is really from the producers' point of view, because both alternative meat products are much easier to manage from a point of view of spoilage. This is why White Castle loves it. This is why Dunkin' loves it."
If consumers also love it, they could drive alternative meats to take up roughly 13% of the market, "in which case whatever dip you see in Beyond Meat, long term, is probably very much a buy," Schlossberg said.
"Fundamentally, from a very, very long-term perspective, it's just starting out," he said. "I think this is going to be the story to come as this is going to be very much a part of the consumer diet going forward."
Disclaimer
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a43b00a6aeb92fb2f8913679ac6692f0 | https://www.cnbc.com/2019/10/28/bitcoin-btc-price-climbs-as-chinas-xi-jinping-embraces-blockchain.html | Bitcoin had a wild weekend, briefly topping $10,000, after China's Xi sang blockchain's praises | Bitcoin had a wild weekend, briefly topping $10,000, after China's Xi sang blockchain's praises
Chinese President Xi Jinping addresses the audience at a luncheon at SkyCity Grand Hotel on November 21, 2014 in Auckland, New Zealand.Greg Bowker | Pool | Getty Images
Bitcoin's price rose sharply over the weekend, recovering from a plunge just days earlier, after Chinese President Xi Jinping gave a speech embracing blockchain technology and calling on his country to advance development in the field.
The value of the world's best-known cryptocurrency jumped as high as $10,332 on Saturday, according to data from industry website CoinDesk. The price has since eased to around $9,370 as of Monday morning, up about 1% on the day.
The virtual currency's jump came as China's leader sang the praises of blockchain, the technology that underpins cryptocurrencies like bitcoin. According to state media, Xi said Friday that China has a strong foundation and should look to take a leading position in the sector.
VIDEO14:5114:51How Facebook's libra lost major partners and provoked the US governmentSocial Media
He reportedly said China should "seize the opportunity" offered by blockchain, adding the technology could benefit a range of industries including finance, education and health care. A blockchain is a digital ledger that maintains a record of transactions or other data across a network of computers.
Beijing has taken a tough stance on cryptocurrencies, banning a fundraising exercise known as an initial coin offering and forcing local trading platforms to shut down in 2017.
China's central bank, the People's Bank of China (PBOC), has been working on its own digital currency. It has accelerated its development in recent months as Facebook and a handful of other companies look to shake up the global financial services industry with a cryptocurrency called libra.
The PBOC set up a research team back in 2014 to explore the use of virtual currencies to reduce the costs involved in circulating traditional paper-based money. A senior official at the bank said last month that the planned digital token would bear some similarities to libra.
Libra has come under intense scrutiny from regulators around the world, who worry Facebook's proposed digital asset would disrupt the financial system and could be open to risks like money laundering and terrorist financing.
Lawmakers last week grilled Facebook CEO Mark Zuckerberg over the project. Zuckerberg at one point said the social network would not take part in launching libra "until U.S. regulators approve."
Though Facebook has led the initiative so far, the tech giant has been trying to keep a distance between it and the Switzerland-based Libra Association that oversees the currency's development. The consortium lost key initial supporters including Mastercard and Visa earlier this month, leaving it with just 21 founding members.
Bitcoin has been on the rise this year and is currently up nearly 150% year-to-date. That marks a significant turnaround from last year, when the digital coin tanked to as low as $3,122 after hitting an all-time high of close to $20,000 in December 2017.
Analysts had attributed some of the cryptocurrency's 2019 gains to headlines around companies like Facebook, Fidelity and New York Stock Exchange owner Intercontinental Exchange getting involved in the space, the logic being that it brings some much-needed legitimacy to an industry that has in the past been clouded by major cyberattacks and scams.
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3fcd29617631873a90135915a086ccd9 | https://www.cnbc.com/2019/10/28/breakfast-at-tiffanys-is-a-real-thing-in-hong-kong.html | Eating breakfast at Tiffany's is a real thing in Hong Kong | Eating breakfast at Tiffany's is a real thing in Hong Kong
When Audrey Hepburn stood outside Tiffany Fifth Avenue in 1961, paper coffee cup and croissant in hand, pining after her dream diamonds, she immortalized the phrase "Breakfast at Tiffany's" and inspired far-flung fantasies for decades to come.
But now movie buffs and shopping enthusiasts alike can dine a la Holly Golightly — only this time with Instagrammable salmon and caviar — with the launch of the luxury jeweler's new concept restaurant in Hong Kong.
The Blue Box Cafe, which opened in mid-October, is located inside Tiffany's new flagship store in the city's iconic Tsim Sha Tsui shopping precinct and marks the brand's first dining destination in Asia.
Decked in Tiffany's signature robin's egg blue, the restaurant is an immersive experience in the classic brand, serving delicate dishes alongside its suite of sterling silver utensils and bone china crockery.
A view of the interior of Tiffany's new Blue Box Cafe at its new flagship store at One Peking Road in Hong Kong.Tiffany & Co
Diners can indulge in varied menu of breakfast and lunch dishes, including coddled eggs and Maine lobster, as well as afternoon tea sets starting from $52. A range of alcoholic beverages and a signature Blue Box celebration cake are also available.
The Hong Kong launch marks Tiffany's second foray into the food business following the launch in 2017 of its inaugural Blue Box Cafe at its flagship Fifth Avenue store in New York.
"We are always looking for new and exciting opportunities and concepts to engage our customers," Richard Moore, divisional vice president of global store design and creative visual merchandising at Tiffany, said at the time.
"If we feel a dining experience will amplify and excite a new or current location, we will explore those possibilities."
Tiffany isn't the only retailer embracing in-store dining experiences in a bid to attract new custom in the era of online shopping.
Ralph Lauren has three Ralphs coffee shops in New York and three in Asia. And Urban Outfitters' Anthropologie brand has seven Terrain Cafes in the U.S., including three in California, serving fried cauliflower sandwiches at brunch and roasted chicken with farro grains for dinner.
The exterior view of Tiffany's new Blue Box Cafe at its new flagship store at One Peking Road in Hong Kong.Tiffany & Co
U.S. home furnishing chain Restoration Hardware has even jumped on the trend, with a glitzy eatery and rooftop sitting area at its recently opened New York store, headed up by Au Cheval restaurateur, Brendan Sodikoff.
As for Tiffany, Moore said the luxury jeweler will limit its food and beverage expansion only to locations where it can live up to the brand's reputation.
"Bringing in a dining experience gives our customers yet another way to immerse themselves in the Tiffany brand," said Moore.
"We may selectively introduce dining concepts to other flagship stores around the world, but true Tiffany Blue Box Cafes will only ever be considered where we can offer a truly elevated luxury dining experience in our most important locations," said Moore.
That strategy is reflected in the restaurant's lengthy waiting list. Tiffany's New York Blue Box Cafe is booked up for the next month, according to its reservations platform. Meanwhile, restaurant booking platform Chope is currently showing availability at the Hong Kong outlet over the coming weeks.
- CNBC's Lauren Thomas contributed to this report.
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86c0b719985bf10c4776f5a517249de6 | https://www.cnbc.com/2019/10/28/california-wildfires-intensify-amid-hurricane-force-winds-forcing-evacuations-power-shutoffs.html | New wildfire threatens thousands in LA as hurricane-force winds spread California blazes | New wildfire threatens thousands in LA as hurricane-force winds spread California blazes
Firefighters battle the Kincade Fire as a barn burns on October 27, 2019 in Santa Rosa, California.Justin Sullivan | Getty Images
A new wildfire broke out in Los Angeles on Monday and blazes fanned by high wind spread elsewhere in California, a day after Gov. Gavin Newsom declared a statewide emergency.
Planned utility shutoffs left millions without power. Shares of Pacific Gas and Electric fell more than 15% on Monday, hitting a new 52-week low of $3.55 per share.
The California Department of Forestry & Fire Protection, or CalFire, reported Monday that at least 162,693 acres burned, 406 structures were damaged or destroyed and three people have died in the fires burning across California.
Nine active fires were burning throughout the state, according to CalFire officials Monday morning. The most recent, the Getty Fire in Los Angeles, broke out Monday morning, covering more than 500 acres. The Los Angeles Fire Department has ordered mandatory evacuations for areas that include 10,000 residential and commercial structures.
Among the evacuees was Los Angeles Lakers superstar LeBron James, who tweeted that he and his family had spent a "Crazy night" trying to find shelter.
Man these LA aren't no joke. Had to emergency evacuate my house and I've been driving around with my family trying to get rooms. No luck so far!
Finally found a place to accommodate us! Crazy night man!
A firefighting helicopter flies over the Getty Fire as it burns in the hills west of the 405 freeway in the hills of West Los Angeles, October 28, 2019.Gene Blevins | Reuters
The J. Paul Getty Museum tweeted around 2 p.m. EST Monday that the Getty Center remains safe as the Los Angeles Fire Department continues to employ air and ground support.
Photos of @LAFD fight against the #GettyFire as seen from the Getty Center, which remains safe. 600+ personnel are continuing to employ air and ground support, including air tankers, to contain the fire.
The Kincade Fire in Sonoma County, the largest of the fires burning in the state, spread to more than 66,000 acres Monday, doubling its size in 24 hours. Only 5% of the fire has been contained. Early Sunday, the fire had spread to 30,000 acres, with 10% considered contained.
Among the properties that were destroyed were the picturesque Soda Rock Winery near Healdsburg, dating to 1869, and the Field Stone winery near Windsor, according to Wine Spectator magazine.
High winds are to blame for the continued growth of the Kincade Fire. The National Weather Service warned that an extreme and potentially historic offshore wind event was expected in the mountain regions of Northern and Central California through Monday morning. Wind speeds reached Category 1 hurricane-level speeds, with gusts that topped 100 mph, according to NBC News.
A red flag warning was in effect, with gusts of 40 to 50 mph still a possibility, according to a Kincade fire incident update released Sunday night. About 180,000 people have been ordered to evacuate in that area.
The Sonoma County Sheriff's Office said on Twitter that it was the largest evacuation that "any of us at the Sheriff's Office can remember."
"We are deploying every resource available, and are coordinating with numerous agencies as we continue to respond to these fires," Newsom said in a statement. "It is critical that people in evacuation zones heed the warnings from officials and first responders, and have the local and state resources they need as we fight these fires."
For the Kincade Fire alone, 352 engines, 28 water tenders, 10 helicopters, 76 hand crews, 51 bulldozers, and 3,441 total personnel have been assigned to contain the fire, according to the incident update.
A firefighter pulls a hose to spray water on a burning tree as he battles the Kincade Fire on October 27, 2019 in Windsor, California.Justin Sullivan | Getty Images
Pacific Gas and Electric said it shut off power for 960,000 customers in 38 counties since Saturday for safety reasons. PG&E could not give an exact number of how many people this affected, but if you multiply the number of customers impacted by 2.5, the average number of people living in an American household, as many as 2.4 million people could be without electricity. This could be the state's largest planned blackout in history.
As of Sunday night, power was restored to about 30,000 customers. PG&E also began safety patrols and inspections before sundown on Sunday in several counties that have received the "all clear," which continued Monday morning.
Hundreds of miles south of the Kincade Fire, in Los Angeles County, the Tick Fire has spread across 4,615 acres, 70% of which was contained as of Sunday evening, according to the incident update. The update reported 10,000 threatened residences. The Tick Fire, which started on Thursday, forced about 50,000 people to evacuate. As of Sunday evening, all evacuation orders had been lifted. A Red Flag warning remains in effect through Monday afternoon and 509 firefighters remain on the scene with additional resources.
On Friday, PG&E shares sank 30%, to below $5 a share, and that could hamper the company's attempt to make its way out of bankruptcy protection. The stock decline followed reporting that PG&E's transmission lines were active in the area where the Sonoma County fire sparked.
PG&E's equipment has sparked 19 major fires in 2017 and 2018, and the company was blamed for last year's Camp Fire, which destroyed the town of Paradise and killed 86 people.
PG&E said that customers can now expect rolling power outages for another 10 years as it upgrades its electrical systems in response to more extreme weather conditions in California.
—CNBC's Emma Newburger contributed to this report.
VIDEO3:5903:59Here's how Californians are reacting to the wildfires and power outagesSquawk Box
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f089007f964e7a820fb7639153413d35 | https://www.cnbc.com/2019/10/28/college-athletes-are-one-step-closer-to-getting-paid.html?__source=fincont&par=fincont | College athletes are one step closer to getting paid | College athletes are one step closer to getting paid
The Baylor University Bears celebrate their win with their fans against the Oklahoma State Cowboys on October 19, 2019 at Boone Pickens Stadium in Stillwater, Oklahoma. Baylor's record was 7-0 after the 45-27 road win. (Photo by Brian Bahr/Getty Images)Brian Bahr | Getty Images
The NFL Players Association announced Monday that it will collaborate with the National College Players Association to explore how college athletes could receive compensation for the use of their name, image and likeness.
Currently, college athletes do not receive any share of revenue stemming from the sale of licensing and broadcast rights by schools, athletic conferences and the National Collegiate Athletic Association.
"These organizations take all revenues and profit derived off the athletes' work without even acknowledging that athletes deserve a fair share," the two organizations said in a press release.
Under the new collaboration, the NFL players and college group will ensure licensing representation is available to college athletes in states that allow them to sign endorsement deals.
In September, California became the first state to pass a law that would allow college athletes to get paid for endorsement deals and hire sports agents. The "Fair Pay to Play Act" takes effect in 2023, and was backed by the collegiate players group.
The new collaboration comes as Florida and New York became the latest states to push legislation similar to California's NCAA "pay to play" law. States with similar pending legislation include Minnesota, Nebraska, Pennsylvania and South Carolina.
The NFL and collegiate players also announced plans to design a fund for injured athletes to pay for current and former athletes' out-of-pocket medical expenses. The fund would also help players suffering with cognitive disabilities associated with contact sports.
Though the NCAA currently bars students from earning any compensation related to college sports, the organization is reportedly poised to revise its rules for amateur athletes. The NCAA's board of governors will receive a briefing Tuesday on whether paying college athletes is feasible, the Associated Press reported.
In September, the NCAA's board of governors sent a letter to California Gov. Gavin Newsom opposing the state's pay-to-play bill, arguing it would "upend [a] level playing field for all student-athletes."
— CNBC's Jabari Young contributed to this report.
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3a65e42230dac20f28264edd82e5ea18 | https://www.cnbc.com/2019/10/28/cramer-lightning-round-wendys-is-in-good-shape-stock-is-oversold.html | Albemarle: "They're in the penalty box."
Iron Mountain: "Iron Mountain's good."
Realogy Holdings: "Full disclosure: my wife works for them. I think that it's O.K. I do worry about the housing market. I think the housing market is just, for what they do, just O.K., not good enough. I'm going to say it's a cheap stock. I hesitate to say more than that."
Wendys: "Everyone thinks that Wendy's and McDonald's are going to be in an incredible war over breakfast. I think that Wendy's is in good shape and the stock is overdone on the down side. I may be want to wait until it goes under $20 to buy some, but I really like Wendys."
CME Group: "CME Group is best in show. ... It is doing very, very well."
Annaly Capital: "We don't really know what's inside of Annaly Capital, so therefore we do not recommend the stock."
Hershey: "It was not a great quarter to be honest. I really do prefer Mondelez. I think it's a better and more simple story."
VIDEO3:3203:32Cramer's lightning round: Wendy's is in 'good shape,' shares are oversoldMad Money with Jim Cramer
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Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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bfafba71b69cf98b79c5f7a093f07962 | https://www.cnbc.com/2019/10/28/dow-to-rise-alphabet-reports-earnings-and-brexit-extension-approved.html | What to watch today: Dow to rise, Alphabet to report earnings, and Brexit extension approved | What to watch today: Dow to rise, Alphabet to report earnings, and Brexit extension approved
U.S. stock futures were pointing to a higher Wall Street open, giving the S&P 500 another chance to break its July record high. The index did trade above during Friday trading, but fell just 3 points short at the close. The S&P 500 and Nasdaq both rose for a third straight session Friday. The Dow joined the S&P 500 and Nasdaq in positive territory for October with Friday's gains. (CNBC)
No economic data is on the calendar for today. However, in a week stacked with major events, the Fed's two-day meeting is likely to be the high point. The Federal Open Market Committee is expected to make its third quarter-point interest rate cut Wednesday afternoon, followed by comments form Fed Chairman Powell. (CNBC)
Dow component Walgreens Boots Alliance (WBA) as well as AT&T (T) headline this morning's earnings calendar, with Restaurant Brands International (QSR), Check Point Software (CHKP) and Spotify (SPOT) also reporting. Google-parent Alphabet (GOOGL) reports after the closing bell, along with Akamai (AKAM), Beyond Meat (BYND), Texas Roadhouse (TXRH), Transocean (RIG) and T-Mobile US (TMUS).
Shares of Tiffany (TIF) were surging about 27% in the premarket after French luxury giant LVMH said today it had approached the New York-based jeweler about a possible takeover. The owner of Louis Vuitton and Bulgari brands among others proposed a bid valuing Tiffany at about $120 per share or $14.5 billion. Tiffany stock closed Friday at $98.55. (Reuters)
President Donald Trump announced on Sunday that the leader of the so-called Islamic State Abu Bakr al-Baghdadi died in an overnight U.S. military operation in Syria, delivering a major blow to the terrorist group even as American forces withdraw from the area. "He died like a dog. He died like a coward," Trump said while addressing the nation. (CNBC)Trump said he's interested in making a deal with ExxonMobil (XOM) or another energy company to tap Syrian oil reserves. The president has identified Syria's oil as a national security priority and has committed to deploying troops to protect the country's reserves even as he pulls troops from Syria's northern regions. (CNBC)* Trump withheld details of ISIS raid from Nancy Pelosi, other congressional Democrats (USA Today)
Trump's former deputy national security adviser was called to testify today in the House impeachment inquiry about withholding military aid for Ukraine while the president urged that country to investigate his political rival. Charles Kupperman filed a lawsuit Friday asking a federal judge to decide whether he should testify because he's worried any decision he makes "will inflict grave Constitutional injury on either the House or the President." (USA Today)
The president's visit to Chicago is stirring up a tempest even before he arrives later today in the city that he's repeatedly derided as the poster child of urban violence and dysfunctional Democratic politics. Trump has frequently slammed Chicago for its gun problems, calling the city a "total disaster" and comparing it to Afghanistan. (AP)
Microsoft (MSFT) emerged victorious in a dramatic competition for public cloud resources for the Defense Department, beating out market leader Amazon Web Services, the Pentagon said late Friday. The contract could be worth as much as $10 billion over a decade. Dow stock Microsoft was rising about 3% in the premarket. Amazon (AMZN) was dipping about 1%. (CNBC)* Trump told Mattis to 'screw Amazon' out of Pentagon cloud contract, insider account claims (CNBC)
The EU has agreed to give the U.K. three more months to exit the bloc. The U.K. will be able to leave the EU at any point before Jan. 31, provided that its Parliament approves the exit agreement that Prime Minister Boris Johnson concluded with the other 27 EU leaders earlier this month. The original departure date was this Thursday. (CNBC)* UK lawmakers to decide on December election as Brexit extension gets the green light (CNBC)
Rep. Katie Hill is resigning amid an ethics investigation over an allegedly inappropriate relationship with a staffer. In a letter posted on Twitter, the freshman Southern California Democrat attributed the resignation to an "abusive" estranged husband and "hateful political operatives" who she said were "driving a smear campaign built around cyber exploitation." (NBC News)
Pacific Gas and Electric Company (PCG) is shutting off power for 940,000 homes and businesses in Northern California to prevent more wildfires, which have ravaged parts of the state in the past few days. The planned power shutoffs would leave as many as 2.7 million people without electricity, in what could be the state's largest planned blackout in history. (CNBC)* California's governor wants Berkshire to bid for Bankrupt PG&E (Bloomberg)
Virgin Galactic will become the first human spaceflight company to trade on public markets today under the ticker symbol "SPCE." A ticket for a Virgin Galactic flight goes for about $250,000 per person, and the company has a list of 603 customers waiting to fly. (CNBC)
Hong Kong has fallen into recession, hit by five months of anti-government protests that erupted in flames at the weekend, and is unlikely to achieve any growth this year, the city's Financial Secretary said. Protests continued this weekend, with police responding with tear gas, water cannons and rubber bullets. (Reuters)
General Motors (GM) workers have ratified a new four-year labor contract, ending a 40-day strike. The United Auto Workers union will use that contract as the basis for negotiations with Ford (F) and Fiat Chrysler (FCAU).
HSBC (HSBC) cut its 2020 profit outlook after reporting earnings that were well below analyst forecasts. It also said it would be undergoing a restructuring to revamp its banking business in the U.S., U.K. and Europe.
Liberty Property Trust (LPT) agreed to be bought by rival industrial real estate owner Prologis (PLD) for an all-stock deal worth $12.6 billion.
Wells Fargo (WFC) has laid off more than 200 business bankers in recent months, according to sources familiar with the matter who spoke to Reuters.
Adobe (ADBE) said it became aware of a "vulnerability" in one of its prototype software environments late last week. The software company promptly shut down the affected areas, which it said contained email addresses but no passwords or financial information.
Estee Lauder (EL) was downgraded to "neutral" from "overweight" at Piper Jaffray, which cited a survey that said female teens are wearing less makeup.
Todd Phillip's R-rated comic-book hit "Joker" regained the top spot at the weekend box office in its fourth week of release, narrowly besting "Maleficent: Mistress of Evil." The Warner Bros.′ sensation, starring Joaquin Phoenix, took in $18.9 million in ticket sales over the weekend. "Mistress of Evil" debuted at No. 1 last week. (AP)
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f09c9be1da22bb58416b2673b7fd42de | https://www.cnbc.com/2019/10/28/freshman-rep-katie-hill-to-resign-amid-allegations-of-affair-with-staffer.html | Freshman Rep. Katie Hill to resign amid allegations of affair with staffer | Freshman Rep. Katie Hill to resign amid allegations of affair with staffer
U.S Representative Katie Hill (D-CA) speaking at a press event with House Democrats on the first 200 days of the 116th Congress, on the steps of the Capitol in Washington, DC.Michael Brochstein | LightRocket | Getty Images
Freshman Rep. Katie Hill is resigning amid an ethics investigation over an allegedly inappropriate relationship with a staffer.
In a letter posted on Twitter, the Southern California Democrat attributed the resignation to an "abusive" estranged husband and "hateful political operatives" who she said were "driving a smear campaign built around cyber exploitation."
@RepKatieHill: It is with a broken heart that today I announce my resignation from Congress. This is the hardest thing I have ever had to do, but I believe it is the best thing for my constituents, my community, and our country. See my official statement below.
Her resignation was first reported by Politico.
The House Ethics Committee investigation of Hill, who was elected in last year's mid-terms, began after the conservative site Red State reported unconfirmed allegations about her personal life and posted a photo of her that it labeled "explicit."
She described the image as an "illegal" and "appalling invasion of privacy" that had been "weaponized" against her.
More from NBC News:Here's the price Mitt Romney is paying for standing against TrumpTrump kept top Democrats in the dark about al-Baghdadi raidJohn Conyers, longest serving black congressman, dies at 90
"We are currently pursuing all of our available legal options," she said. "However, I know that as long as I am in Congress, we'll live fearful of what might come next."
She added that she could no longer allow friends and supporters to "suffer this unprecedented brand of cruelty."
Hill's estranged husband, Kenny Heslep, couldn't immediately be reached for comment.
According to court documents obtained by CNBC, the two were married for nine years before Heslep filed for divorce in Los Angeles in July — one month after he said she told him she was leaving him.
She took their "only operable vehicle and left me stranded at our residence," Heslep said in the documents.
Heslep also claimed that he got multiple jobs at the organization where Hill had worked because of her "influence." He said he lost one of those jobs because Hill's employer was concerned about "nepotism and how it looked that she was my boss," the documents say.
Last week, Hill apologized after admitting that she had a relationship with someone on her campaign. But she denied that the affair was with a staff member.
"I know that even a consensual relationship with a subordinate is inappropriate, but I still allowed it to happen despite my better judgment," Hill said. "For that I apologize."
Hill, who was the executive director of a homeless services organization before her election, is the freshman class' co-representative to the Democratic Caucus' leadership meetings.
In a statement Sunday, House Speaker Nancy Pelosi said Hill made "a great contribution as a leader of the Freshman Class."
"She has acknowledged errors in judgment that made her continued service as a Member untenable. We must ensure a climate of integrity and dignity in the Congress, and in all workplaces," Pelosi said.
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dab56fc57eb8e0cfe696d4edfb92ef56 | https://www.cnbc.com/2019/10/28/heres-why-traders-are-betting-on-alphabet-into-earnings.html | Alphabet tumbles on earnings, but traders see a buy | Alphabet tumbles on earnings, but traders see a buy
VIDEO2:5302:53Why this trading pro doesn't see Alphabet losing any momtentumTrading Nation
Alphabet is tumbling on earnings.
The Google parent fell more than 2% after the bell Monday after posting $10.12 in profit for the third quarter, $2.34 less than expected.
However, the third FANG name to report remains the best performer this month, rising more than 6% and besting gains in Facebook, Amazon and Netflix.
"I actually used that strength … to add to my portfolio last week," Todd Gordon of TradingAnalysis.com said on CNBC's "Trading Nation" on Monday before the release. "We've just been bumping up against this $1300 region and the rest of the FANGs have not. I'll even point your attention to Google relative to the Nasdaq. You're even seeing Google outperform the Nasdaq-tracking [ETF]."
The QQQ Nasdaq ETF has risen 1% in the past three months, a quarter of the gains seen in Alphabet stock.
"I don't see it losing any of its momentum," Mark Tepper, president of Strategic Wealth Partners, said during the same segment. "It is the fastest-growing company in the world with over $100 billion in annual sales.
Tepper adds that its diversified business model also works to its advantage, helping it to derive revenue growth across the company.
"They're the number one player in digital advertising and companies continue to move away from traditional advertising towards digital. Their cloud business is growing at 33% year over year, Google Maps has over a billion users that haven't been monetized yet and quite frankly I think YouTube is an underappreciated asset," he said.
Disclosure: Gordon and Strategic Wealth Partners hold positions in Alphabet.
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c11156fd2c72eb20a3ad49dbf1a97ce9 | https://www.cnbc.com/2019/10/28/hong-kong-enters-recession-as-protests-show-no-sign-of-relenting.html | Hong Kong enters recession as protests show no sign of relenting | Hong Kong enters recession as protests show no sign of relenting
HONG KONG, CHINA - AUGUST 31: A protesters walks in front of a burning barricade after clashing with police at an anti-government rally on August 31, 2019 in Hong Kong, China.Chris McGrath | Getty Images News | Getty Images
Hong Kong has fallen into recession, hit by more than five months of anti-government protests that show no signs of relenting, and is unlikely to achieve annual economic growth this year, the city's Financial Secretary said.
"The blow to our economy is comprehensive," Paul Chan said in a blog post on Sunday, adding that a preliminary estimate for third-quarter GDP on Thursday would show two successive quarters of contraction — the technical definition of a recession.
He also said it would be "extremely difficult" to achieve the government's pre-protest forecast of 0% to 1% annual economic growth.
Protests in the former British colony have reached their 21st week. On Sunday, black-clad and masked demonstrators set fire to shops and hurled petrol bombs at police who responded with tear gas, water cannon and rubber bullets.
Protesters have routinely torched store fronts and businesses including banks, particularly those owned by mainland Chinese companies and vandalized the city's metro system MTR Corp as they view it as acting at the government's behest to curtail protests.
The MTR has shut services early for the past few weeks and said it will close around two hours earlier than normal on Monday by 11 p.m. to repair damaged facilities.
VIDEO6:4606:46What is Hong Kong's relationship with China?CNBC Explains
Tourists numbers have plummeted, a decline Chan called an "emergency" with the drop in visitor numbers worsening in October, down nearly 50%.
Retail operators, from prime shopping malls to mom and pop businesses, have been forced to shutter for multiple days over the past few months.
While authorities have announced measures to support local small and medium seized enterprises, Chan said the measures could only "slightly reduce the pressure".
"Let citizens return to normal life, let industry and commerce to operate normally, and create more space for rational dialogue," he wrote.
Protesters are angry about what they view as increasing interference by Beijing in Hong Kong, which returned to Chinese rule in 1997 under a "one country, two systems" formula intended to guarantee freedoms not seen on the mainland.
China denies meddling. It has accused foreign governments, including the United States and Britain, of stirring up trouble.
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3fc1a8d288d1acc2c6641c59f348c74b | https://www.cnbc.com/2019/10/28/jim-cramer-why-cyclical-stocks-have-been-resilient-and-may-go-higher.html | VIDEO2:2702:27Cramer: 5 reasons why cyclical stocks are showing resilience and may go higherMad Money with Jim Cramer
Cyclical stocks have been one of the biggest surprises of earnings season, and CNBC's Jim Cramer said Monday he has a theory to explain it.
The "Mad Money" host laid out five reasons why these stocks have been resilient — and what it means for investors.
The mood on Wall Street is currently the gloomiest it's been since perhaps the Great Recession, Cramer said, pointing to the widespread belief that the U.S.-China trade war has weighed down the world economy, in addition to other uncertainty caused by geopolitics.
The negative outlook caused analysts to cut overall earnings estimates, with cyclicals taking a share of the shortfall, Cramer said.
"That makes it hard to interpret these quarterly results because the analysts have cut their estimates beforehand. Nobody was looking for anything good" from Caterpillar, Cramer said, using the heavy machinery manufacturer as an example.
So when Caterpillar missed on both third-quarter sales and earnings, it's stock fell in pre-market trading yet eventually finished slightly up for the day as management told an encouraging story on a conference call.
"Thanks to those analysts who downgraded going into the quarter, the stock had already been softened up, which made it a lot easier for Caterpillar to bottom and then immediately bounce right back," Cramer said.
Many cyclical stocks are really cheap to begin with, Cramer said, creating a built-in layer of resilience.
Take McDonald's as a piece of contrarian evidence. While the fast-food titan also had its outlook downgraded preceding its earnings report, a poor showing led the stock to fall — and stay down. It remains down about 18 points, Cramer said.
"Why? Because McDonald's lacks the secret sauce that protected the cyclicals: Mickey D's stock is expensive, but the industrial stocks have finally gotten so cheap that they are basically immunized against bad news," Cramer said.
The fact many cyclicals have committed to boosting dividends and share buybacks also helps their stocks hang in there, Cramer said.
Management teams deserve responsibility for the "bizarre strength" in cyclicals, Cramer argued.
"Their management teams turned out to be far more savvy than anyone imagined," the host said, referencing the work of PPG CEO Michael McGarry.
"I'm used to seeing these guys cut numbers in a downturn because they're levered to everything from planes, to cars, to buildings," Cramer said.
But McGarry was out ahead of it, Cramer said, rapidly pulling back on costs to minimize impacts of a shortfall.
That's why PPG's quarter wasn't quite as poor as predicted, Cramer said.
"McGarry even called out the auto business as a source of strength," he said. "In other words, these executives learned from the Great Recession and they're not gonna let themselves get blindsided again."
"The cyclicals that are working here have decided to change their stripes, to the point where they deserve higher valuations than they used to," Cramer said.
Illinois Tool Works is a perfect example, Cramer said. The Glenview, Illinois-based manufacturer was projected to badly miss on earnings, due in part to a sluggish auto industry, according to Cramer.
But on its conference call, Cramer said he learned about the strength of Illinois Tool Works' non-auto-related businesses, including science and patents, at which moment he "realized it's a better company than people think."
"They're not just gonna sit there and take a beating. Illinois Tool Works had margin improvement in pretty much everything, their raw costs came down, the company actually saw some strength in Europe," Cramer said.
"That's why the stock caught fire. It gave up a little bit today, but it's a comer."
Railroad companies offer a similar story, Cramer said, with operators such as Union Pacific and CSX adopting a strategy called "precision railroading" after decades of decline.
"They manage their trains more efficiently, making them more punctual and more convenient. And efficiency breeds higher earnings per share," Cramer said.
It helped both companies keep earnings from falling equally as fast as revenues did, Cramer said. shake off revenue declines to keep earnings from falling equally.
"No wonder both stocks quickly bottomed and came roaring back," he said. "They're both buys."
Earlier, Cramer detailed how analysts' gloomy outlook could be adding to the resilience.
Another possibility, Cramer said, is simply that the global economy may not be on the cusp of collapse.
"I mean it's possible, just possible, that things could actually be getting a little better around the globe, at least for these companies," Cramer said. "If you think the trade war has gotten as bad as it's gonna get, if you think the Brexit situation could actually be resolved, then these cyclicals are the perfect place to be."
"Normally these stocks get hammered in the wake of a shortfall, yet this quarter they're more likely to rally," Cramer said. "It's absolutely bonkers."
But these five reasons help explain the cyclicals' surprising strength, he said, and "honestly, in every single case, I think they have more room to run."
VIDEO8:3708:37Cramer: 5 reasons why cyclical stocks are showing resilience and may go higherMad Money with Jim Cramer
Disclosure: Cramer's charitable trust owns shares of Caterpillar.
Disclaimer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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a14e32e7aa12cb84e44c22e76c7f763d | https://www.cnbc.com/2019/10/28/jim-cramers-mad-money-recap-stock-picks-oct-28-2019.html | VIDEO1:1201:12Cramer Remix: Why Boeing refuses to rolloverMad Money with Jim Cramer
CNBC's Jim Cramer attributes the market's rise to record levels to both consumer and business demand. The "Mad Money" host breaks down how performances in luxury brands reflect consumer strength. Later in the show Cramer lays out what the $10 billion defense contract awarded to Microsoft means for the computer maker's cloud services.
Traders work at the New York Stock Exchange.Xinhua News Agency | Getty Images
Demand is driving Wall Street toward new all-time highs, CNBC's Jim Cramer said Monday.
The S&P 500 rose nearly 17 points, or 0.56%, setting a record close of 3,039.42, and the Nasdaq Composite expanded nearly 83 points, or 1.01%, missing its record close by about 4 points. The Dow Jones Industrial Average added more than 132 points, or 0.49%, though the 30-stock average is still about 400 points off its all-time high.
The S&P 500 set a previous closing high of 3,025.86 in late July. The index bounced from an intraday low of 2,822.12 in early August, according to FactSet, to stage a roughly 7.7% gain through Monday's market end.
"Without strong demand, the averages never would have made it this far," the "Mad Money" host said. He added that a trade truce between the U.S. and China helped "a host of flailing stocks to get their mojo back."
Cruise ship anchored off the shore of Grand Cayman Island, Royal Caribbean cruise liner Mariner of the SeaMyLoupe | Universal Images Group | Getty Images
Strong stock performances in the high-end consumer discretionary space show the broader U.S. economy "may be in better shape" than investors are led to believe, Cramer said.
Cramer, using the charts of technician Bob Lang, a colleague and publisher of ExplosiveOptions.net, looked at some of the top names in the consumer discretionary sector. That includes a host of nonessential goods and services such as motor homes, cruises, snowmobiles and timeshares.
"That's about as discretionary as it gets," the host said. "These kinds of stocks only work when the consumer's willing to spend and banks are willing to lend."
Microsoft CEO Satya Nadella (L) and Amazon CEO Jeff Bezos visit before a meeting of the White House American Technology Council in the State Dining Room of the White House June 19, 2017 in Washington, DC.Chip Somodevilla | Getty Images
The U.S. Defense Department gave Microsoft "the best possible validation they could get" in awarding a multi-billion dollar defense deal to the company's cloud platform over Amazon, Cramer said.
On the other end of the spectrum, losing out on the potential $10 billion contract is not a "big deal for Amazon," the host said. The request for proposals came down to two of the most valuable companies by market cap.
"The Pentagon's basically saying that Microsoft's cloud platform is just as good as Amazon's, or at least close enough for government work," said Cramer, adding that it's "much more significant win for Microsoft Azure than it would be for Amazon Web Services."
A trader works on the floor of the New York Stock Exchange (NYSE) ahead of the opening bell, January 4, 2019 in New York City. Following a strong December jobs report, the Dow Jones Industrial Average rose 350 points at the open on Friday morning. In a television interview on Friday morning, National Economic Council Director Larry Kudlow said he believes there is 'no recession in sight.'Drew Angerer | Getty Images News | Getty Images
Cyclical stocks have been one of the biggest surprises of earnings season. Cramer said he has a theory to explain it.
The host laid out five reasons why these stocks have been resilient — and what it means for investors.
Randall Stephenson, chairman and chief executive officer of AT&T.David Becker | Bloomberg | Getty Images
In an environment where the bond market offers little payout — the yield on the 10-year U.S. Treasury is 1.85% — Dow and AT&T offer both higher yields and potential opportunities for growth, Cramer said.
"I recommend buying some here, and then maybe wait for the Fed to say something boneheaded on Wednesday that slams the market, or maybe the Labor Department's nonfarm payroll on Friday shows a surprise drop, you can buy some more then into weakness," he said. "Be patient. Dow and AT&T are now, in a safe way, paying you to wait.
In Cramer's lightning round, the "Mad Money" host zips through his thoughts about callers' favorite stock picks of the day.
Realogy Holdings: "Full disclosure: my wife works for them. I think that it's O.K. I do worry about the housing market. I think the housing market is just, for what they do, just O.K., not good enough. I'm going to say it's a cheap stock. I hesitate to say more than that."
Wendys: "Everyone thinks that Wendy's and McDonald's are going to be in an incredible war over breakfast. I think that Wendy's is in good shape and the stock is overdone on the down side. I may be want to wait until it goes under $20 to buy some, but I really like Wendys."
Disclosure: Cramer's charitable trust owns shares of Amazon and Microsoft.
Disclaimer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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7f1380c73f79c480206a0b4e8e0cc459 | https://www.cnbc.com/2019/10/28/lebanon-needs-actions-over-words-in-reforms-imf-middle-east-chief.html | Lebanon's government needs to show a 'resolve for the state to function': IMF Middle East director | Lebanon's government needs to show a 'resolve for the state to function': IMF Middle East director
Lebanese demonstrators raise a large clenched fist with "revolution" written on it at the Martyrs' Square in the centre of the capital Beirut on October 27, 2019, during ongoing anti-government protests.ANWAR AMRO | AFP via Getty Images
Lebanon's leaders need to win back the confidence of its citizenry not by announcing reforms, but by actually implementing them properly, the International Monetary Fund's director for the Middle East and Central Asia said.
"People are suffering because of the low level of growth, the fact that there is low employment," Jihad Azour told CNBC's Hadley Gamble in Dubai ahead of the Fund's release of its quarterly regional outlook.
The economist's advice comes amid the country's largest protests in 14 years. Azour, who previously served as Lebanon's minister of finance from 2005 to 2008, said that if the government dedicates itself to executing functional governance, that translates into better services and job creation. Unemployment in Lebanon currently hovers between 35% and 40%.
"Therefore, I think it's very important now to stabilize the financial situation by addressing the fiscal imbalances, by providing clear direction of reforms that addresses some of the long lasting issues, the structural problems, and also to show that there is a resolve to have the state function to service the needs and aspirations of the people in the street."
Lebanon's banks remain closed eleven days into the mostly peaceful protests, sparking fears of a rush on the banks and a depletion of the country's dollar reserves once they do finally reopen.
To address this fear, Lebanon has put a temporary ban on taking large amounts of dollar cash out of the country. Many blame Lebanon's dangerously low foreign currency levels on the policies of its central bank governor Riad Salameh.
VIDEO2:2402:24Lebanese banks must appease protesters, analyst saysStreet Signs Europe
Lebanon's central bank, the Banque du Liban, has been intervening for years to prop up the Lebanese pound by selling dollars and buying pounds.
But in order to sell dollars, it has to buy the dollars in the first place — meaning that as economic problems have worsened, the dollar reserves have been worn down. Lebanon's commercial banks have to buy dollars from the central bank, and those dollars are locked in the central bank's reserves or in Treasury bills.
Asked if popular anger at the central bank is warranted, Azour replied, "It's not for me to answer this question." But he stressed the urgency of the Mediterranean country's financial situation, something he said the IMF is "observing closely."
"Lebanon has been suffering for a long period of twin deficits, budget deficit and current account deficit, with the backdrop of a very low level of growth that was not able to create enough jobs," Azour said. "Therefore, what is needed today is a very strong and convincing reform package that restores confidence most of its citizens, investors and international community."
Lebanon's current account deficit stands at an eye-popping 25%, meaning it imports far more than it exports, spends more than it saves, and relies heavily on foreign remittances to stay afloat.
Lebanese protesters hold hands to form a human chain along the coast from north to south as a symbol of unity during ongoing anti-government demonstrations on Zalka highway north of Lebanon's capital Beirut on October 27, 2019.PATRICK BAZ | AFP via Getty Images
The protests are a manifestation of widespread anger at decades of corruption, dysfunctional government and the deterioration of basic public services. A reform package promised by Lebanese Prime Minister Saad Hariri last week failed to satisfy the demonstrators, who want a full resignation of the cabinet and an overhaul of the country's sectarian political system.
The reform plan aims to reduce the deficit in 2020 to 0.6% of GDP, but people are concerned that the measures have come too late and many are reliant on one-offs, like a one-off bank tax, that protesters say are unlikely to be implemented. An Arabic hashtag that says "no trust" is trending in Lebanon.
A white paper published by an international organization of Lebanese finance executives last week wrote that "in the absence of immediate and radical austerity measures and structural reforms, Lebanon appears to be heading towards an economic meltdown."
While Azour's words were not quite as strong, the former minister put heavy emphasis on the need for action over words from Lebanese leaders.
"I think what is important is not only to have the package, but also to show the timeline and bring credibility not only to the reforms themselves, but also to their implementation," Azour said. "I think this is where the key issue is truly is how to bring confidence back."
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273962808248771c49537d58787d89b4 | https://www.cnbc.com/2019/10/28/robert-evans-iconic-producer-of-chinatown-dies-at-89.html | Robert Evans, iconic producer of 'Chinatown,' dies at 89 | Robert Evans, iconic producer of 'Chinatown,' dies at 89
Robert Evans arrives at Helmut Newton: White Women - Sleepless Nights - Big Nudes exhibit opening at the Annenberg Space Photography on June 27, 2013 in Los Angeles.Richard Shotwell | Invision | AP)
Robert Evans, the protean and fast-living Hollywood producer who backed such seminal 1970s films as "Chinatown," "The Godfather" and "Harold and Maude," has died. He was 89.
A representative for Evans confirmed that Evans died on Saturday. No other details were immediately available.
His career was a story of comebacks and reinventions. Evans had launched a successful women's clothing line with his brother, Charles, and was visiting Los Angeles on business when actress Norma Shearer saw him sunbathing by the pool at the Beverly Hills Hotel. She persuaded her husband, movie mogul Irving Thalberg, to hire the handsome, dark-haired 26-year-old to play Thalberg himself in "Man of a Thousand Faces," a film about horror movie star Lon Chaney.
After acting roles faded, Evans re-emerged as head of production at Paramount Pictures and quickly converted the studio from a maker of mediocre films to the biggest hit machine in Hollywood, home to "The Godfather" and "Love Story" among others.
Years later, and with many flops in between, he produced the 2003 Kate Hudson-Matthew McConaughey film "How to Lose a Guy in 10 Days." In 1997, he was widely believed the model for Dustin Hoffman's petty-minded Hollywood producer in the satire Wag the Dog."
Evans continued the drama off screen by marrying some of the industry's most glamorous women. He was married seven times. His wives included actresses Ali MacGraw, Catherine Oxenberg and former Miss America Phyllis George.
Evans penned the 1994 memoir "The Kid Stays in the Picture," which was turned into a documentary in 2002.
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cd06a8e68fd10f0430d15e8e25a6b2c5 | https://www.cnbc.com/2019/10/28/sabic-plots-a-course-for-its-future-after-aramcos-planned-ipo.html | Saudi Arabia's Sabic plots a course for its future after Aramco's planned IPO | Saudi Arabia's Sabic plots a course for its future after Aramco's planned IPO
The Kingdom Tower, operated by Kingdom Holding, left, stands alongside the King Fahd highway, illuminated by the light trails of passing traffic, in Riyadh, Saudi Arabia, on Saturday, Jan. 9, 2016. Waseem Obaidi | Bloomberg | Getty Images
RIYADH — A high-level committee of Saudi Basic Industries Corporation (Sabic) executives are working on a post-Aramco IPO (initial public offering) strategy, including possible acquisitions, as the kingdom puts the final touches on the critical stock market offering.
"I am very optimistic," Sabic Vice Chairman and CEO, Yousef Al Benyan, told a small roundtable of reporters at its headquarters in Riyadh on Sunday.
"If Aramco becomes 70% shareholder of the company and Sabic becomes the chemical arm of Aramco and the kingdom, this is going to push the company out in front," he said.
Sabic, the world's third-largest chemical company with 33,000 employees in 50 countries, is looking to boost its own transparency, find synergies and drive growth after the Aramco IPO. In a series of closed room briefings at its headquarters, senior executives — including the firm's corporate finance and petrochemicals boss — worked to clarify the future structure for the business once Aramco goes live.
"We don't use the word integration," Al Benyan said. "There are some misconceptions around the relationship in the future between Aramco and Sabic, but Sabic will remain a publicly-listed company," he added.
Aramco agreed to buy a 70% stake in Sabic from Saudi Arabia's Public Investment Fund (PIF) in March for $69.1 billion, providing a major cash injection for the PIF and a potential boost for Aramco's downstream operations if the two were to combine. The share purchase remains subject to various closing conditions and regulatory approvals. The deal between the three entities was seen as moving money from one pocket of the Saudi state to another, given the government will remain their ultimate owner.
VIDEO3:0003:00We want a stable crude oil price — whether it’s low or high, SABIC CEO saysDavos - World Economic Forum
"We will be negotiating with Aramco on which of their assets will be acquired by Sabic," Al Benyan said, suggesting instead there will be a clear division between the chemical operations of Saudi Arabia's two largest companies.
"We have not been able to identify them at this point because we have no access to them, and we are going through the antitrust right now," he added. "As soon as the antitrust is completed, we need to sit down together and create a synergy committee that is going to drive the value between both companies," he said, saying the review should be completed no later than the first quarter of 2020.
"I'm not worried about how Sabic is going to operate in the future," Al Benyan added.
The successful IPO of Aramco is seen as critical for Saudi Arabia's economy and society. However, progress has slowed in recent months with international investors questioning its touted $2 trillion valuation.
Sabic executives say major projects in its core division of petrochemicals, where it's a global leader in the production of polycarbonates, are continuing as planned. It wants to grow its agri-nutrients fertilizer business 80% by 2025, and is investing further to claim a leadership position in specialty chemicals — despite worries over the state of the global economy.
"There is a big trend against free trade and globalization, unfortunately being fueled by politicians not only in emerging markets but in developed markets too," Al Benyan said. "This could really slow down the economy," he warned.
Executives identified key growth markets in the United States, Latin America and specifically in Africa — where talks on a major transaction have been underway for the last 12 months.
"If you asked me today if I was willing to acquire a petrochemical company in Africa or in Latin America, I would tell you no," he said. "But are you willing to acquire a solutions company? That's a different story," he hinted. "Hopefully from Q1 (the first quarter) next year, we will have something to announce in Africa," Al Benyan added, suggesting that the transaction would be worth around $2 billion, but stopped short of providing additional details.
The company posted a net profit of 830 million riyals ($221 million) in the quarter ending September 30, down from 6.1 billion riyals in the same quarter a year earlier. The company took an impairment loss of 1.5 billion riyals on its investment in Swiss chemicals firm Clariant, which resulted in an 86% drop in its third-quarter net profit.
Correction: This story has been updated to reflect the correct name for Saudi Basic Industries Corporation (Sabic).
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cb9c27005cac8ffe634cd35bf75d6fda | https://www.cnbc.com/2019/10/28/stock-market-investors-monitor-busiest-week-of-earnings-season.html | S&P 500 hits fresh all-time high, boosted by strong earnings and US-China trade progress | S&P 500 hits fresh all-time high, boosted by strong earnings and US-China trade progress
VIDEO6:0406:04The S&P just hit a record high—Here's what four experts are watching nowTrading Nation
The S&P 500 hit a record high on Monday as investors cheered strong earnings and progress on U.S.-China trade.
The S&P 500 rose 0.6% to 3,039.42, closing above 3,027.98, the record set on July 26. The Dow Jones Industrial Average gained 0.5%, or 132.66 points to 27,090.72. The Nasdaq Composite climbed 1% to 8,325.99.
"The market is sending you a very strong message: The cyclical stocks are recovering and they are outperforming," said Andrew Slimmon, managing director at Morgan Stanley Investment Management. "If the economy was going to hit a really bad patch, these stocks wouldn't be recovering."
"The market is finally breaking out of this trading range and it is headed higher," he said. "The economic data has been better than expected. Earnings have come in better than expected."
Microsoft shares contributed to Monday's gains, rising 2.5% on news the company won a $10 billion cloud contract from the Defense Department. AT&T gained more than 4% after announcing a three-year plan that includes the addition of two new board members and the sale of up to $10 billion worth of non-core businesses in 2020. Alphabet climbed nearly 2% ahead of earnings, but the stock slipped in after-hours trading after the company's results were released.
Monday's move to a record high extended the second-longest ever bull market to 3,885 days, by far the second-longest ever, according to data from Bespoke Investment Group.
President Donald Trump called in a tweet the move to record highs a "big win for jobs, 401-K's, and, frankly, EVERYONE."
tweet
After hitting a new high on July 26, the S&P 500 suffered a sharp sell-off amid fears of an economic recession in August. That month, the S&P 500 dropped 1.8%. The index struggled through September but has rebounded strongly in October. It is now up more than 6% from that August low.
Last week's 1.2% rise set the stage for a potential S&P 500 upside breakout, said Craig Johnson, chief market technician at Piper Jaffray.
"The technical backdrop improved last week as the SPX finally distanced itself from the magnetic 3,000-point level," Johnson said. "A close above 3,026 will validate a record high breakout and likely open the door to a new leg higher."
Traders work on the floor at the New York Stock Exchange.Brendan McDermid | Reuters
Stocks have gotten a boost recently from better-than-expected earnings. Of the 206 S&P 500 companies that reported through Monday morning, 78% have topped analyst expectations, according to FactSet.
Walgreens Boots Alliance, AT&T and Spotify are among the companies that reported stronger-than-forecast profits on Monday. Walgreens rose as much as 1.9% before trading 0.7% higher. Spotify surged 16.2%.
"The US equity markets have been surprised by the strength of the 3Q results," said Sean Darby, global equity strategist at Jefferies, in a note. "With the US earnings season producing a positive string of results and investors positioning extremely risk averse alongside negative US real interest rates, we believe there is further upside for global equities."
Improvement on the U.S.-China trade front has also lifted investor sentiment recently. U.S. and Chinese officials said they were "close to finalizing" some parts of a trade agreement.
Chinese state-run news agency Xinhua also pointed to progress being made on trade. The world's two largest economies have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
Apple, UnitedHealth and J.P. Morgan Chase are among the stocks helping the S&P 500's bid to fresh record highs. Apple shares are up more than 11% in October amid optimism around iPhone 11 sales. UnitedHealth has rallied 13.7% for the month, while J.P. Morgan Chase has gained 7.5% amid expectations that interest rates have bottomed.
Monday's moves come ahead of a highly anticipated Fed meeting later this week. The Fed is largely expected to cut rates by 25 basis points for the third time this year.
—CNBC's Sam Meredith contributed to this report.
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63ecc2e6711c0bba8381c09575d6b826 | https://www.cnbc.com/2019/10/28/stock-market-outlook-for-tuesday-alphabet-earnings-housing-data.html | Alphabet earnings reaction, housing data: 3 things to watch in Tuesday's markets | Alphabet earnings reaction, housing data: 3 things to watch in Tuesday's markets
Workers set up the booth for Alphabet Inc's Google inside the National Exhibition and Convention Center, the venue for the upcoming China International Import Expo (CIIE), in Shanghai, China, October 28, 2018.China Daily | Reuters
Here are the most important things to know about Tuesday before you hit the door.
Google's parent company Alphabet reported mixed third-quarter earnings after the bell on Monday. The company's stock fell 4% after hours after reporting EPS of $10.12 per share, while analysts expected $12.42 per share.
Alphabet is coming off of a stellar earnings report in July, when it beat the Street and had its best day in four years. While regulation remains an overhang for the company, analysts are expecting Google Cloud, Google Search, YouTube, and revenue growth to keep things going.
Continuing the busiest week of earnings season, Tuesday brings quarterly results from General Motors, Mastercard, Kellogg, Merck and Pfizer. Better-than-expected earnings this quarter, among other things, rallied the S&P 500 to a record high on Monday. But investors will be watching for fourth quarter earnings forecasts, as 60% of the companies that have reported so far have lowered their Q4 estimates, according to The Earnings Scout.
Toy-maker Mattel, Amgen, Mondelez and video game company Electronic Arts also report earnings on Tuesday.
We'll get a bunch of housing data on Tuesday which should shed light on whether the housing market is heating back up. The S&P CoreLogic Case-Shiller U.S. National Home Price Index is expected to rise 2% annually in August, according to Dow Jones, the same as last month. Pending home sales for September are estimated to rise 0.7%, rebounding from August's drop of 1.6%. Consumer confidence for October is forecast to come in at 128, according to analysts polled by Dow Jones. September saw the biggest confidence drop in nine months.
Major events (all times ET):
8:30 a.m. S&P/Case-Shiller home prices
10:00 a.m. Pending home sales
10:00 a.m. Consumer confidence
10:00 a.m. Housing vacancies
10:30 a.m. Dallas Fed services Major earnings:
General Motors (before the bell)
Mastercard (before the bell)
Kellogg (before the bell)
Merck (before the bell)
Pfizer (before the bell)
Mattel (after the bell)
Amgen (after the bell)
Mondelez (after the bell)
Electronic Arts (after the bell)
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8e2f95e390ac3563fb51fce69cb65d84 | https://www.cnbc.com/2019/10/28/tim-hortons-parent-rolls-up-its-sleeves-to-fix-struggling-business.html | Tim Hortons still 'confident' in turnaround, eyes loyalty and drive-thru improvements to boost sales | Tim Hortons still 'confident' in turnaround, eyes loyalty and drive-thru improvements to boost sales
VIDEO7:0707:07Why Tim Hortons is struggling in the U.S.Restaurants
After another disappointing quarter from Tim Hortons, the owner of the Canadian coffee chain shared more about its plans to reinvigorate the business.
Shares of its parent company Restaurant Brands slid 3% in morning trading Monday, despite strong performances from its other two chains, Popeyes Louisiana Kitchen and Burger King.
Tims, which is in the middle of a multiyear turnaround, accounted for 60% of Restaurant Brands' total revenue during the third quarter. The chain is still responsible for seven out of every ten cups of coffee sold in Canada.
But in Canada, its home market, same-store sales declined by 1.2%.
"This was a challenging quarter, but we continue to be focused on delivering results and have our sleeves rolled up as we finish the year," Restaurant Brands CEO Jose Cil told analysts on the conference call.
Sales of both hot and cold beverages were weaker during the quarter. Limited-time offers did not help declining sales of the Iced Capp, Tims' version of the Frappuccino. Canada's cold weather means that fewer customers drink cold beverages year round.
"However, we were encouraged by the Creamy Chills products and believe they have the potential to be a strong platform for future innovation and growth," Cil said.
For hot beverages, Tims is trying to improve the quality and efficiency of its 40-year-old coffee-making system by rolling out new brewers across Canada by early 2020. The brewers have a new water filtration system for more consistent coffee and free up more time for employees.
The chain also unveiled new spill-resistant lids for its coffee during the third quarter. The majority of Tims customers pick up their coffee via a drive-thru.
Tim Hortons also recognized the importance of the drive-thru in its renovations of hundreds of stores. Some locations have received double drive-thru lanes to allow for faster service.
The chain is also trying to address weaker lunchtime food sales, although executives did not share any more specifics.
"Given our leadership in convenience and frequency, we continue to believe that we can win market share and lunch over time with the right investment and focus," Cil said.
In July, the coffee chain opened its first "innovation cafe" in downtown Toronto — similar to Starbucks' upscale Roastery locations. Tims is using the store to introduce new products, like a line of handcrafted doughnuts and a line of Nitro cold drinks. It plans to test the Nitro cold brew and iced teas in some locations next year.
Starbucks' own Nitro cold brew has helped drive U.S. sales since it began rolling it out across the United States.
One bright spot for Tims was the continued success of its loyalty program, which launched in March. Half of all of its transactions come from rewards members.
But the majority of these customers are using swipe cards, not the Tims' mobile app, to identify themselves as members. The chain is working on converting these customers into using the app, so it can target them with personalized promotions.
"Now, during this period, we may see a little pressure on [same-store sales growth] but we're confident long term that this is going to be a driver of traffic and profitable sales," Cil said.
Tims is also expanding its overseas reach as growth in its home market slows. The chain is opening more restaurants in the United Kingdom, Spain, Mexico and the Middle East. It is also targeting China, with plans to open 1,500 locations across the country in the next decade.
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e61a49073b3238a6c0de4c5cb73da45b | https://www.cnbc.com/2019/10/28/us-considers-extending-tariff-exclusions-on-chinese-imports.html | US considers extending some tariff exclusions on Chinese imports as trade talks continue | US considers extending some tariff exclusions on Chinese imports as trade talks continue
U.S. Trade Representative Robert Lighthizer (C) gestures as he chats with Chinese Vice Premier Liu He (R) as U.S. Treasury Secretary Steven Mnuchin (L) looks on after posing for a "family photo" at the Xijiao Conference Centre in Shanghai on July 31, 2019.Ng Han Guan | AFP | Getty Images
The U.S. will consider extending certain tariff exclusions on $34 billion of imports from China as the two nations work toward a trade agreement, the Office of the U.S. Trade Representative said Monday.
Nearly 1,000 products were exempted from the July 2018 tariff, and those exclusions are set to expire on Dec. 28.
The extension would give the companies importing those products leeway, while mitigating tensions between the global superpowers as they hash out the details of their agreement. In September, China said it plans to exclude American farm goods, including soybeans, from tariffs amid the trade talks.
The USTR said last week that China and the U.S. are close to finalizing a phase one deal. President Donald Trump has said the agreement will address intellectual property and financial services and include a pledge for China to buy $40 billion to $50 billion in American agricultural products.
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816cf323bee7c97f81f6d05f2388bf53 | https://www.cnbc.com/2019/10/28/wall-streets-chart-analysts-see-new-highs-as-breakout-signal.html | Chart analysts say new record gives investors the green light to jump back into bull market | Chart analysts say new record gives investors the green light to jump back into bull market
People with umbrellas pass by bull and bear outside Frankfurt's stock exchange during heavy rain in Frankfurt, Germany.Kai Pfaffenbach | Reuters
The stock market's surge to new highs on Monday shows the historic bull market that began in 2009 is resuming its climb and should be viewed as a green light for investors over the next few months, according to Wall Street's chart analysts.
Technical analysts at PiperJaffray, Bank of America Merrill Lynch, Fundstrat Global Advisors and Fairlead Strategies all wrote that they see the record high as a sign the yearslong trend has returned. Bank of America Merrill Lynch's Stephen Suttmeier said certain patterns point to an S&P 500 climb to 3,220 into next year, nearly 6% above current levels.
"Momentum is positive from short-, intermediate-, and long-term perspectives, and market breadth (or, participation) is healthy. As breadth continues to expand, cyclical stocks should do better," wrote Katie Stockton, founder of Fairlead Strategies.
"We see no negative divergences to suggest this is a final push higher. Rather, we would see a breakout as an extension of the year-to-date uptrend and, in turn, an extension of the bull market that began in 2009," she added.
The S&P 500 hit a new all-time high Monday morning immediately after the opening bell and was last seen at 3,034, still at record levels.
The new highs may come as a welcome relief for Wall Steet. Stocks struggled to regain new highs since July thanks to a mix of trade angst, declining U.S. corporate profit growth and uncertainty the Federal Reserve would act quickly enough to accommodate a deceleration in the American economy.
Despite concerns in the third quarter, bears never had a strong argument for why stocks were overvalued and the major indexes simply traded sideways for much of the last six months, wrote Robert Sluymer, technical strategist at Fundstrat Global Advisors.
We "continue to view the market cycle as being a normal pause in an ongoing secular bull market similar to what developed in 2016, 2011 and the 'cycle' pullbacks that developed during the secular bull markets in the 50s-60s and 80s-90s," he wrote.
Sluymer added that the consistent outpeformance of the semiconductor space and technology more broadly bodes well for a return to growth stocks, which investors punished in the third quarter. Strength in cyclical stocks — such as J.P. Morgan Chase breaking out of a two-year trading range or Caterpillar trading up after its weak earnings — point to a more stable uptrend.
Another technical analyst pointed to the S&P 500's move above the key 3,000 mark, as well as the breadth of strength within the market, for the optimism heading into the last two months of the year.
"U.S. equities are hovering near record-highs. Momentum and market breadth are improving, and suggest a breakout to new highs is on the near-term horizon," wrote Craig Johnson, chief market technician at PiperJaffray.
"The technical backdrop improved last week as the SPX finally distanced itself from the magnetic 3,000-point level. A close above 3,026 will validate a record high breakout and likely open the door to a new leg higher."
To be sure, not every technical strategist was convinced that the new highs necessarily herald a return to the good times.
"Being that we are about half a percent away from new all time highs I suspect we'll encounter some resistance making a closing high above 3026 but it seems likely that eventually we will and likely this week," wrote Robert Pavlik, chief investment strategist at SlateStone Wealth.
Pavlik noted that investors may be overly optimistic on certain macroeconomic developments, such as the "Phase One" deal between the U.S. and China and the deceleration in earnings.
Thus far, the blended earnings decline for the S&P 500 is 3.7%; if the actual decline for the quarter holds at 3.7% after the rest of the components report, it will mark the first time the S&P 500 has reported three straight quarters of year-over-year profit decline since the fourth quarter of 2015 through the second quarter of 2016, according to FactSet earnings analyst John Butters.
That could bode poorly for the S&P once investors refocus on valuations after the Fed decision on Wednesday, Pavlik wrote.
"The issue than becomes will we stay above that number? While I'm bullish I'm also pragmatic and believe that give the issues related to a slowing economy, political issues and remaining questions related to trade, I believe the upside is currently limited."
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18bb66976533178997c636a05e902bc1 | https://www.cnbc.com/2019/10/28/white-house-told-in-may-of-ukraine-president-zelenskiys-concerns-about-giuliani-sondland.html | White House told in May of Ukraine President Zelenskiy's concerns about Giuliani, Sondland | White House told in May of Ukraine President Zelenskiy's concerns about Giuliani, Sondland
Rudy Giuliani, former mayor of New York, speaks with reporters during the White House Sports and Fitness Day event on the South Lawn of the White House in Washington, D.C., U.S., on Wednesday, May 30, 2018.Al Drago | Bloomberg | Getty Images
The White House was alerted as early as mid-May — earlier than previously known — that a budding pressure campaign by Rudy Giuliani and one of President Donald Trump's ambassadors was rattling the new Ukrainian president, two people with knowledge of the matter tell NBC News.
Alarm bells went off at the National Security Council when the White House's top Europe official was told that Giuliani was pushing the incoming Ukrainian administration to shake up the leadership of state-owned energy giant Naftogaz, said the sources. The official, Fiona Hill, learned then about the involvement of Lev Parnas and Igor Fruman, two Giuliani associates who were helping with the Naftogaz pressure and also with trying to find dirt on former Vice President Joe Biden's son.
Hill quickly briefed then-National Security Adviser John Bolton about what she'd been told, said the individuals with knowledge of the meeting.
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The revelation significantly moves up the timeline of when the White House learned that Trump's allies had engaged with the incoming Ukrainian administration and were acting in ways that unnerved the Ukrainians — even before President Volodymyr Zelenskiy had been sworn in. Biden had entered the presidential race barely three weeks earlier.
In a White House meeting the week of May 20, Hill was also told that Ambassador to the EU Gordon Sondland, a major Republican donor tapped by Trump for a coveted post in Brussels, was giving Zelenskiy unsolicited advice on who should be elevated to influential posts in his new administration, the individuals said. One of them said it struck the Ukrainians as "inappropriate."
Zelenskiy was inaugurated that same week — on May 20 — snapping selfies and giving high-fives to the crowd as he made his way through the Ukrainian capital for his speech to parliament.
Hill learned of Zelenskiy's concerns from former U.S. diplomat Amos Hochstein, now a member of Naftogaz's supervisory board. Hochstein had just returned from pre-inauguration meeting with Zelenskiy and his advisers in Kyiv in which they discussed Giuliani's and Sondland's overtures and how to inoculate Ukraine from getting dragged in to domestic U.S. politics.
Ukrainian President Volodymyr Zelensky listens during a meeting with US President Donald Trump in New York on September 25, 2019, on the sidelines of the United Nations General Assembly.Saul Loeb | AFP | Getty Images
Zelenskiy's early concern about pressure from Trump and his allies, expressed in the May 7 meeting with his advisers and Hochstein, was earlier reported by The Associated Press. The fact that those concerns were then quickly relayed to the White House National Security Council has never previously been reported.
Bolton declined to comment. Hill, through her attorney Lee Wolosky, also had no comment. The White House did not immediately respond to a request for comment.
The White House meeting also offers some of the first indications of what led Hill to conclude that Giuliani and Sondland were part of a squad running a "shadow Ukraine policy," as she later would testify to Congress.
Sondland had no official role overseeing Ukraine, a country not part of the EU. Giuliani, Trump's personal lawyer, isn't even a government employee. Hill testified that Bolton later privately called Giuliani a "hand grenade" and described Sondland's push on Ukraine as part of a "drug deal."
Hochstein declined to comment to NBC News on his White House meeting with Hill, which came up during her roughly 10-hour deposition in the House earlier this month. Hill resigned from her post over the summer.
Gordon Sondland, U.S. ambassador to the European Union, arrives to the Capitol for his deposition as part of the House's impeachment inquiry on Thursday, Oct. 17, 2019.Tom Williams | CQ-Roll Call, Inc. | Getty Images
The early involvement by Giuliani, Sondland and their associates in exerting influence over the new Ukrainian leader illustrates how political goals and potential profits have blended together in the extraordinary chain of events being detailed in the impeachment proceedings. House investigators are probing allegations Trump abused his power by pressing Ukraine to pursue investigations for his personal political gain.
Giuliani, as he sought information from Ukrainians that could help Trump's re-election, was getting help from Parnas and Fruman, two Florida businessmen, documents given to Congress by the State Department's inspector general show.
At the same time, the pair was trying to make big money by drumming up business selling natural gas to Naftogaz, and to oust the company's management — with help from Giuliani and friends in the Trump administration, NBC News has reported. Separately, Parnas and Fruman were recently charged with violating campaign finance laws for allegedly trying to funnel foreign money into U.S. elections.
Biden's son Hunter joined years earlier.
Sondland, as he tried over the summer to secure a White House visit for Zelenskiy and the release of military aid to Ukraine, worked with Giuliani and others to pressure Zelenskiy over investigations into Burisma and the 2016 election. House Democrats allege it was a quid pro quo ordered by Trump in an impeachment-worthy abuse of power. Trump denies any quid pro quo.
Sondland and Energy Secretary Rick Perry also backed an effort to change the membership of Naftogaz's supervisory board, NBC News previously reported. The board includes four international members and three Ukrainian nationals. A person close to Sondland said he and Perry merely wanted changes to the governance and structure of Naftogaz's board needed to secure Western investment in Ukraine's energy industry.
Zelenskiy's May 7 Kyiv meeting with Hochstein and top aides in which he voiced dismay about Giuliani and Sondland included Andriy Kobolev, the Naftogaz CEO. It took place the day after the State Department announced then-Ambassador to Ukraine Marie Yovanovitch was returning home ahead of schedule.
"The message was clear: 'You better listen to us. If we tell you to investigate Biden, you better do it. Look at what happened to (Yovanovitch),'" said one individual familiar with the outlook of Zelenskiy's office at the time. "They saw that Giuliani went after her — and he won."
Yovanovitch's ouster is of key interest to impeachment investigators. Her departure created a void at the U.S. Embassy in Kyiv that Sondland felt he was helping to fill as he made personnel recommendations to the new Zelenskiy administration, the person close to Sondland said.
Her replacement as top diplomat, Bill Taylor, did not arrive in Kiev until June 17. House Democrats have described his nine-plus hours of testimony this month as among the most damning to Trump so far.
Yovanovitch's abrupt recall months ahead of schedule left no doubt for Zelenskiy and his aides that Giuliani's agenda had Trump's full backing and that his government would have to somehow address the demands for investigations and changes at Naftogaz, individuals familiar with the matter said.
Zelenskiy, thrust into a precarious position by the impeachment proceedings against a president who still controls U.S. policy toward Ukraine, has publicly insisted his administration did not feel pressured.
But Sen. Chris Murphy, D-Conn., who visited Zelenskiy last month aiming to persuade him not to get dragged into the U.S. political fracas, said the young Ukrainian president simply can't afford to acknowledge publicly what was evident during his trip to Kyiv.
"They felt pressure. No doubt they felt pressure," Murphy said Sunday on CNN. "Of course he is going to say that, you know, he didn't and doesn't feel any pressure, there was no blackmail, because he's got to make sure that Trump continues to support his country. But there is absolutely no doubt that the Ukrainians felt pressure to do what Giuliani was asking."
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8542c0255ed060f14c55655a980188bb | https://www.cnbc.com/2019/10/29/aig-shares-dip-on-reports-retirement-unit-valic-is-under-investigation.html | AIG stock dips on report SEC is investigating sales of retirement investments to teachers | AIG stock dips on report SEC is investigating sales of retirement investments to teachers
AIG affiliates charged with mutual fund shares conflicts by the SEC on March 14, 2016.JB Reed | Bloomberg | Getty Images
Shares of insurance giant AIG dropped 1% on reports that a subsidiary of the insurer, Valic, is under investigation by the Securities and Exchange Commission about its sales to schools and universities, people familiar with the matter told the Wall Street Journal on Tuesday.
The SEC is looking into Valic's sales and disclosure practices and whether retirement plan clients at schools and universities are being properly informed about compensation and product costs. Valic is a unit of AIG that specializes in retirement plans,
The inquiry revolves around whether Valic representatives were transparent about how much compensation they received when clients chose higher-cost products, and if Valic's pay structure favored employees that recommended the high-cost products.
Two former Valic employees told the Wall Street Journal that Valic employees earn higher commission for high-cost products, like annuities, than low-cost products, like mutual funds.
The SEC is also looking into Valic's relationship with certain school districts, where Valic has duel roles of providing help with school costs and advising teachers and school employees.
Several high-level executives have been on administrative leave in the past few weeks, people told the WSJ.
"We cannot comment at this time on any regulatory inquiries or related personnel matters. It is our policy to cooperate fully with all regulatory inquiries and to take steps to ensure compliance with the law and best practices," an AIG spokesperson told CNBC.
Shares of AIG closed down 0.9% on Tuesday.
—Read the full Wall Street Journal story here.
—CNBC's Jim Forkin and Contessa Brewer contributed reporting.
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94c3b548a4b3fb27aba087793bba48e1 | https://www.cnbc.com/2019/10/29/biden-donors-discuss-digital-fundraising-as-they-see-a-drop-in-cash.html | Cash-strapped Biden campaign and top donors look to beef up fundraising, including through social media ads | Cash-strapped Biden campaign and top donors look to beef up fundraising, including through social media ads
Former Vice President Joe Biden, 2020 Democratic presidential candidate, speaks during a town hall event in Manchester, New Hampshire, U.S., on Wednesday, Oct. 9, 2019.Kate Flock | Bloomberg | Getty Images
Joe Biden's cash-strapped presidential campaign has been talking to top donors about ways to beef up its fundraising strategy in the crucial fourth quarter, including a possible increase in spending on social media platforms such as Facebook, according to people familiar with the matter.
They have also discussed a bigger emphasis on text messages that ask potential contributors to support Biden's campaign, said these people, who spoke on the condition of anonymity. The former vice president's campaign already sends texts to potential backers, and it is unclear what the message will be during the quarter.
The development comes at a precarious time for Biden's campaign, as his fundraising and polling numbers weaken against an onslaught from progressive Sens. Elizabeth Warren and Bernie Sanders, and fellow moderate Pete Buttigieg, the mayor of South Bend, Indiana.
The former vice president entered the race for the Democratic presidential nomination earlier this year as the clear front-runner. He enjoyed commanding leads in polls and got off to a fast money-making start with $21.5 million in the second quarter.
However, he pulled in only $15.7 million in the third quarter, and had $8.9 million in cash on hand — both totals well behind Sanders, Warren and Buttigieg. He maintains a 6-point lead over Warren in Real Clear Politics' national polling average, but polls of early primary states such as Iowa and New Hampshire show Biden lagging or at risk of losing. The Iowa caucuses and the New Hampshire primary, both set for February, are the first contests of the 2020 election season.
Fundraising records illustrate Biden's biggest fundraising problem, namely appealing to the kinds of grassroots and small-dollar donors who fuel the Sanders and Warren campaigns. Beefing up digital efforts could help Biden's campaign in this regard.
People familiar with the campaign's deliberations say boosting online efforts doesn't necessarily represent a major shift in strategy. Yet several of Biden's fundraisers believe that the campaign needs to improve its appeal to online donors.
"He can do more with online voters, but he's done surprisingly well," Biden supporter and former Pennsylvania Gov. Ed Rendell told CNBC in a recent interview. Other donors have been privately questioning where they can turn for sources of campaign funding as elections in the early primary states loom over the former vice president's organization.
Earlier this month, Biden and his team rallied their donors at a summit in Philadelphia by calling on them to help them succeed on Super Tuesday primaries on March 3, when 40% of delegates are up for grabs. California, North Carolina and Texas all hold their primaries that day.
A Biden spokesman did not return a request for comment.
Biden's campaign has been behind in spending on Facebook ads that often entice contributors. Since he entered the race in April, Biden has spent $2.5 million on Facebook. Warren's campaign has spent $2.7 million and Sanders has bought $3.1 million in ads, Facebook's ad archive shows. Since January, President Donald Trump's campaign has spent $13.6 million on the platform.
Read more: Candidates love to rip Big Tech companies, but their campaigns still pay them millions
Throughout Biden's 2020 run, 35% of his donors have given under $200, while almost 65% are writing larger checks, according to the nonpartisan Center for Responsive Politics. Warren has been dominating the race in capturing smaller donations, which helped her raise $24.6 million in the third quarter and finish with $25.7 million on hand.
The recent fundraising chatter also comes as Biden appears to be opening the door to gaining the support of a super PAC after he said earlier in the campaign that he would not look to similar money-making committees for help. These types of fundraising outlets are allowed to raise and spend an unlimited amount of money in support of or in opposition to a particular candidate.
Biden has denied that he's changed his position and told a group of reporters in North Carolina that he can't stop people who want to form a super PAC that would back him.
"They are able to go out and do this, period. I cannot stop them if I wanted to stop them. It's their right to do it," he said. Most of the other 2020 candidates have sworn off accepting assistance from PACs and, in some cases, have called on these committees to not be formed.
People looking to put together pro-Biden super PACs include Phil Munger, an affluent Democratic donor and son of Berkshire Hathaway Vice Chairman Charlie Munger, and Larry Rasky, who was once the former vice president's communications director during his 2008 run for president.
"We intend to fight back against the lies and distortions we're seeing now from Trump, his allies, the Russians, and the Republican Party. While other candidates have groups supporting their efforts, no other Democrat has to fight this two-front war," Rasky said in a statement. "That is why our friend Joe Biden is the target and why we will have his back."
Rasky declined to answer follow up questions on how much they're looking to raise by the end of the fourth quarter.
Munger did not return a request for comment.
VIDEO3:0203:02How Joe Biden's cash problems are squeezing his campaign, fundraisersPower Lunch
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2efd24584381cf50fd2c8d0b7af9e87d | https://www.cnbc.com/2019/10/29/bp-earnings-q3-2019.html | BP's third-quarter net profit tumbles 41% on weaker oil prices, weather impacts | BP's third-quarter net profit tumbles 41% on weaker oil prices, weather impacts
VIDEO3:3503:35Oil demand has softened due to trade tensions, BP's CFO saysSquawk Box Europe
Energy giant BP reported a 41% fall in third-quarter net profits on Tuesday, citing lower upstream earnings, weaker oil prices and maintenance and weather impacts.
BP posted third-quarter underlying replacement cost profit, used as a proxy for net profit, of $2.3 billion, versus $2 billion, according to data from Refinitiv. That compared with a profit of $3.8 billion over the same period a year earlier and $2.8 billion in the second quarter of 2019.
The results show that the U.K.-based oil and gas company still managed to beat analyst expectations, despite a sharp drop in third-quarter net profits.
Shares of BP dipped 0.5% shortly after the opening bell.
Here are the key points:
Underlying replacement cost profit, used as a proxy for net profit, for the third quarter of 2019 was $2.3 billion, compared to $3.8 billion a year earlier.The third-quarter results, despite beating analyst expectations of $2 billion, represent a fall of 41% when compared to the same period a year earlier.A dividend of 10.25 cents per share was announced for the quarter.
"Overall, it has actually given us a strong set of underlying earnings but, more importantly, strong operating cash — which has allowed us to stabilize debt this quarter," BP CFO Brian Gilvary told CNBC's "Squawk Box Europe" on Tuesday.
Gilvary said that while oil prices were "pretty finely poised," crude futures seemed to be stabilizing somewhere around $60 a barrel.
"I think that sets us up well given we have got the company back into balance at $50 a barrel about two and a half years ago. So, therefore, we start to generate more surplus cash (and) that surplus cash will help us pay down the debt," he added.
International benchmark Brent crude traded at $61.32 Tuesday morning, down around 0.4%, while U.S. West Texas Intermediate (WTI) stood at $55.53, more than 0.5% lower.
Brent crude prices have fallen almost 20% since an April peak, while WTI prices are down more than 15% over the same period.
The report comes shortly after CEO Bob Dudley, who has worked with BP for 40 years and held the position of CEO for almost a decade, announced he would be soon be stepping down from his role.
Dudley will be replaced by the current upstream chief executive, Bernard Looney, following the delivery of the firm's 2019 full-year results on February 4, 2020.
A BP company logo at a gas station in London, U.K.Chris Ratcliffe | Bloomberg | Getty Images
In September, Dudley said BP would look to sell some of its most carbon-intensive projects, and reduce investment in others, to try to improve the firm's environmental footprint.
The energy giant has been targeted by climate activist groups on numerous occasions in recent months, with demonstrators increasingly angry about the lack of progress toward a lower-carbon future.
Shares of BP are down more than 4% from the same period in 2018, with weaker energy prices and sluggish global demand seen as likely to weigh on the oil industry as major energy companies report third-quarter earnings.
Royal Dutch Shell is expected to report its latest quarterly figures on Thursday, with U.S. rivals Chevron and Exxon Mobil both set to report earnings on Friday.
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659534db2c426cadfd6bf078c779423b | https://www.cnbc.com/2019/10/29/chuck-schumer-worries-trump-will-shut-down-government-amid-impeachment.html | Chuck Schumer says he is 'increasingly worried' Trump will shut down the government to distract from impeachment probe | Chuck Schumer says he is 'increasingly worried' Trump will shut down the government to distract from impeachment probe
Senate Minority Leader Chuck Schumer (D-NY) talks to reporters after the weekly Senate policy lunches at the U.S. Capitol in Washington, October 29, 2019.Siphiwe Sibeko | Reuters
Chuck Schumer, the top Senate Democrat, said Tuesday that he worries President Donald Trump will shut down the federal government to divert attention from the House's impeachment probe.
Funding will lapse after Nov. 21 if Congress cannot pass spending legislation — and get Trump to sign it. The Senate minority leader said he thinks the Democratic-held House and GOP-controlled Senate can strike a deal to keep the government running, but suggested Trump could blow up an agreement.
"I believe left to our own devices Congress could work out an agreement to quickly fund the government," Schumer, a New York Democrat, told reporters on Capitol Hill. "But I'm increasingly worried that President Trump may want to shut down the government again because of impeachment, an impeachment inquiry. He always wants to create diversions."
VIDEO2:0002:00House releases resolution outlining impeachment probe processClosing Bell
Representatives for the White House's Office of Management and Budget did not immediately respond to CNBC's request to comment.
Shutdowns — even when they're brief — have become a repeated spectacle in the Trump administration amid fights over immigration funding. A record 35-day funding lapse affecting parts of the government in December and January forced hundreds of thousands of workers to miss two paychecks.
Since House Speaker Nancy Pelosi announced an impeachment probe into Trump last month, and pushed for documents and testimony from key administration officials, the president has railed against the inquiry as a "witch hunt" designed to invalidate the 2016 election. The House is looking into whether Trump abused his power to influence the 2020 election by urging Ukraine to investigate a political rival, former Vice President Joe Biden, and his son Hunter.
The investigation is only the fourth serious impeachment inquiry into an American president. The House plans to vote soon on a resolution setting up the procedures for its impeachment process.
If the House impeaches the president, the Senate would have to hold a trial to decide whether to remove him from office. Depending on if and when the House moves, a Senate trial could derail work on funding the government.
VIDEO2:0702:07This is what happens when the U.S. government shuts downDigital Original
Congress had already passed one funding bill, known as a continuing resolution, to keep the government running at existing spending levels through Nov. 21. Lawmakers have failed to quickly agree on regular appropriations bills.
The House has passed 10 of 12 measures need to fund government agencies. The Senate has not approved any of the bills amid disagreements over defense and border security spending, though Republicans are pushing to pass four of them this week.
Congress may have to pass a stopgap spending plan to prevent a government shutdown for another few months. Last week, Sen. Richard Shelby, an Alabama Republican and chairman of the chamber's Appropriations Committee, said a continuing resolution was a possibility.
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49bdffd4d9e04fc7d60871bff0e685e4 | https://www.cnbc.com/2019/10/29/cnbc-fed-survey-cnbcs-steve-liesman-fed-to-cut-rates-again-but-other-economic-concerns-are-emerging-ahead-of-election.html | CNBC FED SURVEY: CNBC'S STEVE LIESMAN: FED TO CUT RATES AGAIN, BUT OTHER ECONOMIC CONCERNS ARE EMERGING AHEAD OF ELECTION | CNBC FED SURVEY: CNBC'S STEVE LIESMAN: FED TO CUT RATES AGAIN, BUT OTHER ECONOMIC CONCERNS ARE EMERGING AHEAD OF ELECTION
Fed to cut rates again, but other economic concerns are emerging ahead of election: CNBC survey
Steve Liesman | @steveliesman
Nearly 80% of the 43 respondents believe the Fed will cut interest rates on Wednesday, according to the CNBC Fed Survey of fund managers, economists and strategists.On a scale of 1 to 10, with 10 being the best policies for the economy, respondents gave President Trump a 5.5. Former Vice President Joseph Biden gets a 4.7 rating.Sen. Bernie Sanders scored a 2 and Sen. Elizabeth Warren 2.5.Nearly 80% of respondents oppose Warren's wealth tax and 45% believe it will reduce growth.Trump's economic approval rating improved to 48%, up 7 points from the prior survey.
Even while the stock market breaks out to new records, the CNBC Fed Survey finds elevated concerns over recession, growing divisions about the outlook for monetary policy and worries about the economic policies of both President Donald Trump and Democratic contenders for the presidency.
Nearly 80% of the 43 respondents believe the Fed will cut rates at its meeting this week, the third cut this year. But 63% believe the Fed will pause in its rate cuts for the remainder of the year. On average, the respondents, who include fund managers, economists and strategists, think the next cut will come in February. Still, 40% believe the Fed is done cutting at least through 2020.
"After the next cut, the fed funds rate would re-enter the zone where there is no evidence that further cuts help the economy," wrote John Donaldson, director of fixed income at Haverford Trust Co. "If ultra-low rates and negative rates are such a panacea, why aren't Japan and Germany growing at 6% rather than teetering on recessions?"
Economic forecasts
For the U.S., respondents now see a 34% chance of recession in the next year, the highest since 2011, amid elevated concerns over protectionist trade policies and global economic weakness. While recession is not the base case, respondents forecast economic growth at just 1.75% this year, down from 2.9% in 2018, and then rebounding to 2% in the next two years. Respondents expect the unemployment rate to tick up above 4% by 2021.
As a result of the lukewarm economic outlook, expectations for the stock market are modest. The S&P 500 is seen rising to only 3,228 by the end of 2021 for a gain of just over 6% in the next two years from the current level.
"The most critical issue facing the economy is the trade war and interest rate cuts will do little to change the course of growth as long as the threats of tariffs persist," wrote Joel L. Naroff, president, Naroff Economic Advisors.
Although twice burned, respondents to the CNBC Fed Survey once again had confidence in a positive outcome to trade talks. Eighty-three percent believe Washington and Beijing will sign a limited trade agreement this year, a level of conviction rivaling prior predictions for U.S.-China deals that proved wrong. Meanwhile, 76% say tariffs have resulted in higher prices for consumers and 60% believe tariffs have played a "significant role" in the global slowdown.
About 60% have reduced their growth forecasts for this year and next due to tariffs.
Grading Trump, Democratic contenders
While there is continued concerns with the president's trade policies, respondents don't give Democrats much better marks on economic policy. On a scale of 1 to 10, with 10 being the best policies for the economy, respondents gave Trump a 5.5, which is just on the positive side of neutral. Former Vice President Joseph Biden gets a 4.7 rating, slightly negative for growth.
Sen. Bernie Sanders scored a 2 and Sen. Elizabeth Warren got a 2.5. Nearly 80% of respondents oppose Warren's wealth tax and 45% believe it will reduce growth, with most believing it's an inefficient way to raise revenue and will prompt tax avoidance. Trump's economic approval rating improved to 48%, up 7 points from the prior survey, but still low compared with much of his presidency. Some 52% believe Trump will be re-elected to a second term.
"A house divided against itself cannot stand ... and I can't stand it either. Both parties are pathetic. Their irresponsibility puts growth at risk," said Robert Brusca, chief economist, Fact and Opinion Economics.
For more information contact:
Jennifer DaubleCNBCt: 201.735.4721m: 201.615.2787e: jennifer.dauble@nbcuni.com
Emma Martin CNBCt: 201.735.4713m: 551.275.6221e: emma.martin@nbcuni.com
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424a0089a2a3a3f77a85bfebc5571408 | https://www.cnbc.com/2019/10/29/cnbcs-fast-money-halftime-report-celebrates-veterans-day-with-special-program-live-from-the-womens-memorial-in-arlington-va.html | CNBC's "Fast Money Halftime Report" Celebrates Veterans Day with Special Program – Live from the Women's Memorial in Arlington, VA | CNBC's "Fast Money Halftime Report" Celebrates Veterans Day with Special Program – Live from the Women's Memorial in Arlington, VA
WHEN: Friday, November 8, 2019 @ 12PM ET
WHERE: CNBC's "Fast Money Halftime Report" – Live from the Women's Memorial in Arlington, VA
CNBC's "Fast Money Halftime Report" (M-F 12PM – 1PM) will celebrate Veterans Day with a special live program from Women In Military Service For America Memorial (the Women's Memorial) at the gateway to Arlington National Cemetery in Arlington, VA on Friday, November 8th.
"Fast Money Halftime Report" host Scott Wapner will be joined by "Halftime Report" traders Josh Brown, Jenny Harrington, navy veteran Jim Lebenthal, Stephanie Link, Shannon Saccocia, and Joe Terranova. The live audience will be comprised of active military, retired military and military families. After the broadcast, attendees will have the opportunity to participate in an Q&A with Wapner and the traders about stocks and financial markets.
Special guests will appear throughout the hour, including: Major General Maria Barrett; Army Veteran and Senior Vice President and Private Client Advisor, Bank of America Private Bank, Kelly Demers; IBM board member and the now-retired first female four-star admiral, U.S. Navy Admiral Michelle Howard; Army Veteran and Women Veterans of Wall Street Co-Founder, Patricia LaBorda; Brigadier General Paula Lodi; Senior Vice President, Wealth Management, UBS, Patricia Murphy; Sword & Plough Co-Founders Betsy Nunez and retired First Lieutenant Emily Nunez Cavness; and Air Force Lieutenant General Jacqueline Van Ovost.
ABOUT "FAST MONEY HALFTIME REPORT":
"Fast Money Halftime Report" is the place for market moving interviews and fast-paced market analysis. Airing at 12PM ET on weekdays, Scott Wapner and the traders help you navigate the most profitable hour of the trading day.
ABOUT CNBC:
CNBC is the recognized world leader in business news and provides real-time financial market coverage and business content consumed by more than 330 million people per month across all platforms. The network's 14 live hours a day of business programming in North America (weekdays from 5:00am - 7:00pm ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also offers content through its vast portfolio of digital products such as: CNBC.com, which provides real-time financial market news and information to CNBC's investor audience; CNBC Make It, a digital destination focused on making you smarter about how you earn, save and spend your money; CNBC PRO, a premium service that provides in-depth access to Wall Street; a suite of CNBC mobile apps for iOS and Android devices; Amazon Alexa, Google Assistant and Apple Siri voice interfaces; and streaming services including Apple TV, Roku, Amazon Fire TV, Android TV and Samsung Smart TVs. To learn more, visit: https://www.cnbc.com/digital-products/.
Members of the media can receive more information about CNBC and its programming on the NBCUniversal Media Village Web site at http://www.nbcumv.com/programming/cnbc. For more information about NBCUniversal, please visit http://www.NBCUniversal.com.
ABOUT THE WOMEN IN MILITARY SERVICE FOR AMERICA MEMORIAL:
The Women In Military Service For America Memorial is the only major national memorial to honor some three million women who have served in the nation's defense, beginning with the American Revolution. Located at the gateway to Arlington National Cemetery, the Women's Memorial and its 33,000-square-foot education center chronicles the history of women's service with an exhibit gallery, never-before-seen artifacts, period uniforms, and rare photographs. The Memorial maintains the Register, a database accessible by Memorial visitors, which preserves and showcases the individual stories of women who have served. The Memorial is open 8:00 AM to 5:00 PM every day except Christmas. To learn more about the Memorial, please visit https://www.womensmemorial.org. To register a servicewoman, past or present, please https://www.womensmemorial.org, and click on "Register."
For more information contact:
Jennifer DaubleCNBC201.735.4721jennifer.dauble@nbcuni.com
Bridget DeSimoneWomen's Memorial301.280.5735Media@womensmemorial.org
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a5461010ad9af99a6f1ab465dc479804 | https://www.cnbc.com/2019/10/29/dow-to-fall-boeing-ceo-on-capitol-hill-fed-meeting-kicks-off.html | What to watch today: Dow to fall, Boeing CEO on Capitol Hill and Day 1 of Fed meeting | What to watch today: Dow to fall, Boeing CEO on Capitol Hill and Day 1 of Fed meeting
U.S. stock futures were pointing to a slightly lower Tuesday open for Wall Street, following the first record highs for the S&P 500 since July 26. The S&P 500 is riding its first four-day win streak in three and a half months, while the Nasdaq has four straight gains for the first time in four months. Despite projections for a lower open, a reversal could see the Nasdaq hit record territory as it sits only four points from a record close and about 13 points from an all-time intraday high. (CNBC)* Fed to cut rates again, but other economic concerns are emerging ahead of election: CNBC Survey
Housing is the focus of today's economic reports, with the Case-Shiller report on August home prices at 9 a.m ET and the National Association of Realtors' September pending home sales at 10 a.m. ET. The Conference Board issues its October consumer confidence index at 10 a.m. ET. The Fed kicks off a two-day meeting today, with an interest rate decision and policy statement coming tomorrow at 2 p.m. ET. A third rate cut this year is expected. (CNBC)
Dow components Merck (MRK) and Pfizer (PFE), along with General Motors (GM), highlight this morning's corporate earnings reports, with AutoNation (AN), Kellogg (K) and Mastercard (MA) also set to report. After-the-bell reports today include Advanced Micro Devices (AMD), Allstate (ALL), Amgen (AMGN), Electronic Arts (EA), Herbalife Nutrition (HLF), Mattel (MAT), Mondelez International (MDLZ), and Yum China (YUMC).
Beyond Meat (BYND) reported its first quarterly profit after-the-bell Monday, topping expectations for earnings and revenue. However, shares came under pressure after the company said it would need to offer more discounts to deal with growing competition. The IPO also lockup expires today. As of Monday's close, the stock was up over 320% from its $25 offering price in May. (CNBC)Shares of GrubHub (GRUB) plunged more than 30% in premarket trading after the online deliver service matched forecasts with adjusted quarterly profit but saw revenue miss. GrubHub also gave weaker-than-expected current quarter guidance. "We believe online diners are becoming more promiscuous," the CEO wrote in a letter to shareholders. (Reuters)
Boeing (BA) CEO Dennis Muilenburg plans to tell lawmakers today that the manufacturer made mistakes with its 737 Max, its best-selling plane that is grounded worldwide after two fatal crashes that killed 346 people. The hearings will be Muilenburg's first hearings on Capitol Hill since the crashes. (CNBC)
House Democrats will hold a vote on Thursday to push forward with the impeachment inquiry into President Donald Trump. Less than two weeks earlier, Pelosi had brushed off the calls from Republicans to hold a vote that formally authorized the impeachment probe. (CNBC)U.S. Army official and White House national security official Alexander Vindman plans today to tell members of Congress conducting an impeachment inquiry that he was on the phone call between Trump and Ukraine's leader in which Trump asked for an investigation into the Bidens, and that he raised concerns about it. (NBC News)
Former U.S. Attorney General Jeff Sessions is exploring the possibility of a run for his old Senate seat in Alabama. It was not immediately clear how close Sessions was to making a decision or the seriousness of the exploration. He has until 5 p.m. Nov. 8 to decide whether to be a last-minute entry into the 2020 race. (AP)* Bernie Sanders: 'Let's not make people overly nervous' about socialism (CNBC)
Saudi Aramco aims to announce the start of its initial public offering on Sunday, three people with direct knowledge of the matter told Reuters, after delaying the deal earlier this month to give advisers time to secure cornerstone investors. It would be one of the largest ever public offerings, worth upward of $20 billion. * TikTok owner ByteDance says it has no immediate Hong Kong IPO plans, denies FT report (Reuters)
The U.S. will consider extending certain tariff exclusions on $34 billion of imports from China as the two nations work toward a trade agreement. Nearly 1,000 products were exempted from the July 2018 tariff, and those exclusions are set to expire on Dec. 28. (CNBC)* China accuses US of 'economic bullying' over equipment ban (AP)
Amazon (AMZN) announced today it will start delivering grocery products within a two-hour window to all Prime members living in the 2,000 regions eligible for the service. That means Prime members, who pay $119 per year in the U.S. for benefits, will now also be able to get free grocery shipments. (CNBC)* Apple announces AirPods Pro with noise cancellation for $249 (CNBC)
Ride-hailing giant Uber (UBER) announced the formation of a new division called Uber Money to house its efforts, which include a digital wallet and upgraded debit and credit cards. The focus will be expanding Uber's efforts to give its 4 million-plus drivers and couriers around the world access to a mobile bank account so they can get paid after each ride. (CNBC)
Juul Labs plans to cut about 500 jobs, about 10 to 15% of its workforce, by the end of the year as part of a broader reorganization plan aimed at repairing the company's relationship with regulators. The e-cigarette giant will also cut its marketing budget and invest in ways to limit underage vaping. (CNBC)
Millions of Californians prepared to be in the dark — some for five days, or longer — as the nation's largest utility, Pacific Gas & Electric (PCG), said it was switching off power again today to prevent powerful winds from damaging its equipment and sparking more fires. (AP)
Alphabet (GOOGL) reported lower-than-expected profit for the third quarter, though the Google parent's revenue was slightly above forecasts. The bottom line miss comes as the company reports record quarterly expenses as it invests in areas like cloud computing. On Monday, it was revealed that Alphabet made an offer to acquire Fitbit (FIT), which closed up 30% on the news.
T-Mobile US (TMUS) beat estimates with quarterly earnings, though the mobile service provider's revenue fell below forecasts. The bottom line results were helped by better-than-expected new subscriber additions.
BP (BP) reported a sharp drop in third-quarter profit amid lower production and weaker oil prices, but its earnings did come in above analyst forecasts.
Marathon Petroleum (MPC) is set to spin off its chain of gasoline stations, and is also mulling a shake-up of its executive leadership, reported the Wall Street Journal. The moves are designed to help appease concerns of activist shareholders including Elliott Management.
The Houston Astros are just one win away from clinching their second World Series title in three years. The Astros face off with the Washington Nationals back in Houston tonight at 8:07 p.m. ET. If the Nationals win, Game 7 will be tomorrow night. (USA Today)
David Benioff and D.B. Weiss, the first-time showrunners who brought "Game of Thrones" to life on HBO, have reportedly walked away from their deal with Disney's Lucasfilm to launch a "Star Wars" feature film trilogy in 2022. The pair cited their recent $200 million deal with Netflix. (Deadline)
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d36f47963391f0d4dde2543023983e2a | https://www.cnbc.com/2019/10/29/ford-recalls-over-300000-north-american-vehicles-over-safety-concerns.html | Ford recalls 300,000 North American vehicles over safety concerns | Ford recalls 300,000 North American vehicles over safety concerns
The first production Ford Transit commercial van waits on the assembly line to be unveiled at the Ford Kansas City Assembly Plant April 30, 2014, in Claycomo, Missouri.Getty Images
Ford announced Tuesday that it's recalling approximately 300,000 North American vehicles over safety concerns.
The company says a problem with the vehicles' driveshaft could result in vibration while driving, loss of motive power or damage to surrounding components like brake and fuel lines.
The recall affects 293,558 vehicles in the United States and territories, 22,960 in Canada and 2,744 in Mexico. The vehicles were manufactured between January 2014 and June 2017.
Ford says it has not received any reports of accident or injuries resulting from the issue.
In February the company announced three recalls that affected over 1.5 million vehicles in total.
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24c3d4b0b91ffe9186ec34643de1046c | https://www.cnbc.com/2019/10/29/forex-markets-us-china-trade-war-federal-reserve-in-focus.html | Dollar slips against euro before Fed decision; sterling dips | Dollar slips against euro before Fed decision; sterling dips
A hand holding U.S. dollar banknotes in China on January 25, 2018.Zhang Peng | LightRocket | Getty Images
The dollar dipped against the euro on Tuesday, a day before the Federal Reserve was expected to cut U.S. interest rates, while sterling dipped as Britain looked likely to go to election in December.
Investors will watch the conclusion of the U.S. central bank's two-day meeting, and the dollar may gain if the Fed indicates reluctance to cut rates more.
Were looking for a hawkish reaction, which would lean toward a stronger dollar, said Mark McComick, North American head of FX strategy at TD Securities in Toronto. Given that markets are looking for the Fed to prop up the economy over the coming months, I think them signaling a little bit of a pause would kind of reinforce some consolidation in the dollar, especially against euro and sterling which have been driven by the Brexit euphoria, he said.
Increasing optimism that Britain will reach a deal to avoid a disorderly exit from the European Union has supported the euro and sterling recently. Still, the pound dipped on Tuesday in choppy trading after Prime Minister Boris Johnson won parliament's preliminary approval to hold Britain's first December election in almost a century in a bid to break the Brexit deadlock.
On Monday, the EU agreed to a three-month flexible delay to Britain's departure. Sterling fell 0.04% against the dollar to $1.2857. It has risen from $1.2193 on Oct. 8, but is below a five-month high of $1.3012 reached on Oct. 21.
The Australian dollar climbed for a third straight session against the greenback on growing hopes for a U.S.-China trade agreement. Australia's economy is highly correlated to China's and on Monday, U.S. President Donald Trump said he expected to sign a significant part of the trade deal ahead of schedule.
The dollar index against a basket of six major currencies fell after data showed U.S. consumer confidence unexpectedly fell in October.
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344aa360e4a08331e7fb3a3a28c9621d | https://www.cnbc.com/2019/10/29/game-of-thrones-prequel-pilot-not-picked-up-by-hbo.html | 'Game of Thrones' prequel pilot not picked up by HBO | 'Game of Thrones' prequel pilot not picked up by HBO
Source: HBO
The much anticipated "Game of Thrones" prequel staring Naomi Watts will not be coming to HBO.
According to a report from Variety, HBO passed on the pilot for the series, which was set thousands of years before the events of the original.
The pilot was one of several "Game of Thrones" projects that HBO had put into development before the David Benioff and D.B. Weiss' show ended. However, none of the other projects appear to be moving forward either.
One report in September suggested that HBO was nearing a pilot commitment for a project based on George R. R. Martin's companion book "Fire & Blood," which tells the stories of the Targaryen kings who had long ruled Westeros.
Representatives for HBO declined to comment.
The news comes just months after "Game of Thrones" aired its critically-panned final season.
HBO has always been known for its heavily curated content. Shows like "Vinyl" and "Hung" got the ax despite millions of dollars worth of investment and critical acclaim because they were not as strongly received by viewers as other shows.
The premium cable service has put much of its production power behind new shows like "Watchmen," which debuted earlier this month to favorable reviews from critics, as well as new seasons of "Westworld," "Barry" and "Last Week Tonight."
Currently in production is "Lovecraft Country," a show from the minds of Jordan Peele ("Us") and J.J. Abrams ("Lost"), based on Matt Ruff's novel of the same name.
"Lovecraft Country" is a horror drama that follows Atticus Black, his uncle George and Letitia Dandridge as they travel across 1950s Jim Crow America in search of Black's father. On their trek, the three must overcome racist terrors, but also monsters ripped straight from the pages of H.P. Lovecraft's prose.
The show, which is still in production, is expected to be marketed heavily by HBO next year.
Read the full report from Variety.
VIDEO1:3201:3219.3 million watched 'Game of Thrones' finaleClosing Bell
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b36b4e709633d12b9ed4ee9d16167645 | https://www.cnbc.com/2019/10/29/grocery-stores-are-no-longer-the-best-place-for-some-consumer-brands.html | Grocery stores are no longer the future for some consumer goods brands, says new VC founder | Grocery stores are no longer the future for some consumer goods brands, says new VC founder
Getting mass distribution on the shelves of huge retailers may not be the best way forward for new consumer-goods brands, according to the co-founder of a new venture capital (VC) business The Craftory.
Elio Leoni Sceti, a former Reckitt Benckiser and Procter & Gamble executive, founded the company in May 2018, and its website describes it as "counter-corporate and anti-traditional VC," with a focus on cause-driven consumer goods.
It invests in "challenger" companies that have at least $10 million in sales, aiming to grow them to $100 million-plus, but Leoni Sceti advises against doing deals with large retailers, for fear of compromising their standards, being pushed to reduce their selling prices, or being squashed by brands owned by the large consumer-goods companies.
"We think that the moment that somebody wants to go on (the) Tesco shelf (for example), very often is the beginning of the end. And the reason is very simple, which is that in consumer goods, the big guys, the big companies are setting the agenda of what's on shelf," Leoni Sceti told CNBC last week.
If a smaller brand that uses ingredients that are in limited supply gets a listing at a large store, for example, it may have to cut back or replace that ingredient to be able to compete on price, he said. Writing on The Craftory's website, co-founder Ernesto Schmitt stated: "It's hard to be the champion of healthy nutrition when you're one bottle facing against 75 Coca-Colas on the shelf, whereas you can stand free and bold, noteworthy all because of yourself, online."
Smaller, new brands are "cool because I know about it and you don't," Leoni Sceti said. "Then you spend money (on distribution in mass retail), you grow it, and then it loses his cool. So, it's a vicious cycle," he said.
Leoni Sceti advocated selling direct online, or in "curated" retail. As for Amazon? It's right for some brands, he said.
"Amazon is the big massive elephant in the room because it's both a channel that you can stay in control of but it's also a channel that is incredibly risky." Because many people now start their online search for a product on Amazon (sometimes over Google), it's a place where some brands need to have a presence.
But when a smaller brand starts being recognised by consumers more broadly, competitors can bid on its brand name so their products appear on Amazon's search results page, for example.
VIDEO3:3903:39Amazon may be setting up to spin off AWS: R5 Capital founderThe Exchange
Amazon is "a must" for more than half the brands The Craftory invests in, Leoni Sceti said, but they have to have a very clear mission. "If you're selling a (shampoo) bar that is no plastic, zero waste … if your purpose is translated into a product that is not immediately competitive on the price element, then Amazon is not a bad thing to have."
In March, The Craftory led a $30 million funding round into Chilean plant-based food company NotCo, with Jeff Bezos's family office also participating in the round. In July, The Craftory invested $15 million into New York-based Ruby Love, which makes period-proof underwear.
Brands that have a reason to exist beyond simply making money are the focus for The Craftory, and Leoni Sceti spoke to CNBC at the One Young World summit in London, a conference where young people and world leaders met to tackle global issues such as climate change and poverty. Leoni Sceti is a trustee of One Young World and met its co-founders, advertising executives Kate Robertson and David Jones, when they were managing his ad business at Reckitt Benckiser more than a decade ago.
He said the young delegates have an openness and enthusiasm that tackles an older generation's attitude that "we've been there, we've done that, we've seen that doesn't work," when it comes to dealing with global issues. Leoni Sceti, who has "been a big corporate guy," said his cause-driven mindset was triggered when Reckitt Benckiser started doing carbon footprint assessments in the early 2000s and solidified when he was CEO of frozen food company Iglo Group and ran a 2014 campaign showing how freezing could reduce food waste.
He turned Captain Birds Eye, a famous character in British advertising and one that represented Iglo's Birds Eye frozen food, into a green icon on packaging. "So, we developed this campaign that it was basically buy frozen, you know, half your waste and we tested it and it was particularly relevant with the young people because of the environment," he told CNBC.
This purpose-driven trend was arguably solidified by Larry Fink, CEO of investment firm BlackRock last year. Fink wrote to shareholders in January 2018: "Society is demanding that companies, both public and private, serve a social purpose," and pushed the companies it invests in to be clear on their long-term purpose. In August, a group of 181 CEOs issued a statement saying that business goals should focus on employees, customers, ethics and communities, instead of solely on serving shareholders.
Leoni Sceti described The Craftory as a place for "cause capitalists," where consumer-goods brands make money and do good at the same time. He is an independent director on the boards of AB InBev and Swiss chocolate producer Barry Callebaut Group, where he says he is "very close" to their sustainability agendas.
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0f46d29b4083ebacc9c9254b4a6febec | https://www.cnbc.com/2019/10/29/hong-kong-activist-joshua-wong-barred-from-running-in-elections.html | Hong Kong pro-democracy activist Joshua Wong barred from running in district elections | Hong Kong pro-democracy activist Joshua Wong barred from running in district elections
Joshua Wong outside the Legislative Council shortly after being released from prison on June 17, 2019 in Hong Kong.Carl Court | Getty Images News | Getty Images
Prominent Hong Kong pro-democracy activist Joshua Wong said on Tuesday that he was the only candidate who had been disqualified from running in local district council elections due to be held in November.
In a notice on Tuesday, the Hong Kong Electoral Affairs Commission said his nomination was deemed to be "invalid."
The government separately stated the candidate could not comply with the requirements of relevant electoral laws.
VIDEO6:4606:46What is Hong Kong's relationship with China?CNBC Explains
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f46bdf71d502b4064d26a4d45698d582 | https://www.cnbc.com/2019/10/29/hudsons-bay-ceo-barneys-is-an-example-of-how-tough-it-is-out-there.html | Hudson's Bay CEO Helena Foulkes: 'Barneys is an example of how tough it is out there' | Hudson's Bay CEO Helena Foulkes: 'Barneys is an example of how tough it is out there'
Helena Foulkes attends the 2018 National Retail Federation Gala at Pier 60 on January 14, 2018 in New York City.Dia Dipasupil | Getty Images Entertainment | Getty Images
Hudson's Bay Company CEO Helena Foulkes knows the department store sector is troubled.
"Barneys [New York] is an example of how tough it is out there," Foulkes said during a discussion at WWD's Apparel & Retail CEO Summit in New York on Tuesday afternoon. "People ... loved Barneys. We hope very much to learn from what they loved about Barneys [to] help us build on our experiences themselves."
Barneys New York filed for bankruptcy protection in August and has since been fighting for its life, putting other U.S. department store operators on notice and keeping them on their toes.
Authentic Brands Group, the parent company of over 50 brands such as Nine West and Nautica, said last week it was the successful bidder for Barneys' intellectual property. ABG said, in part, it plans to license the Barneys name to Hudson's Bay's Saks Fifth Avenue. Still, the sale to ABG is contingent on bankruptcy court approval at a hearing this Thursday.
The news has put a spotlight on New York retail in particular, where Barneys' iconic flagship sits on Madison Avenue, and Saks Fifth Avenue's recently renovated shop sits just down the block. Nordstrom opened its first flagship location in Manhattan last week, near Central Park. And Neiman Marcus opened a store at the Hudson Yards mall, downtown on the West Side, earlier this year. Macy's and J.C. Penney have shops at Herald Square.
According to Foulkes, Hudson's Bay has seen "no impact" to its business following Neiman Marcus' opening. "Nordstrom looks great, but we're still feeling really good about where we are," she added. "We serve a little bit of a different market than Nordstrom."
Hudson's Bay announced in August it would sell its struggling Lord & Taylor business to clothing rental subscription service Le Tote, for $100 million.
And earlier this month, the Canadian-based chain said in a press release it has entered into an agreement with a group of investors, led by executive chairman Richard Baker, to be taken private. That's still pending final approval of shareholders that will be tallied during a December meeting.
"What I say all the time internally is whether we're private or public, it really doesn't matter," Foulkes said Tuesday. "We've got a strategy that we're going after. My job is to make sure people don't get distracted by this." She called Hudson's Bay and Saks Fifth Avenue "the two crown jewels of this business," where investments will be focused moving forward.
VIDEO15:2915:29Why the PVH CEO is cautious about this holiday seasonClosing Bell
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7508bbb26c3973c0d0e8fac046b67928 | https://www.cnbc.com/2019/10/29/mastercard-ma-earnings-q3-2019.html | Mastercard earnings beat on top and bottom lines | Mastercard earnings beat on top and bottom lines
A woman walks past a Westpac bank advertisement in central Sydney, Australia.Daniel Munoz | Reuters
Mastercard reported third-quarter earnings on Tuesday that beat analysts' expectations on the top and bottom lines.
Shares of Mastercard were up 1% in premarket trading.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Earnings per share: $2.15 adjusted, vs. $2.01 expectedRevenue: $4.47 billion, vs. $4.42 billion expected
Gross dollar volume, the dollar value of all transactions processed, came in at $1.7 trillion — 14% higher than the year-earlier period when the company reported gross dollar volume of $1.5 trillion. Domestic dollar volume increased to $494 billion from $442 billion during the third quarter of 2018, almost a 12% increase.
The strong volume growth comes despite weak U.S. consumer data in September. U.S. retail sales missed economists' projections and dropped 0.3% in September, the first decline in seven months. Consumer confidence data also missed expectations for September, coming in at 125.1 as compared with the 133 estimated.
Mastercard's business in Europe also came in strong during the third quarter, with gross dollar volume for the region of $507 billion, up 16% from the year earlier period.
Net revenue increased 15% from the third quarter of 2018 not only due to an increase in gross dollar volume, but also an increase in switched transactions and cross-border volumes.
"We have recently expanded several key customer relationships, announced our Mastercard Track suite of B2B solutions and launched the faster, more secure click-to-pay online checkout experience," CEO Ajay Banga said in a statement about the earnings beat.
The credit-card company noted that total operating expenses increased 16% from the year-earlier period due to acquisitions and ongoing investments. These investment expenses, however, came in lower than what the company expected, and it anticipates those expenses to now be incurred during the fourth quarter.
Mastercard is investing to grow its cyber security, loyalty and rewards as well as expanding its relationship with partners such as Citi, Bank of America and HSBC.
In the third quarter of 2018, Mastercard reported third-quarter adjusted net income of $1.90 billion, or $1.78 per adjusted share, and net revenue of $3.9 billion.
According to FactSet, 30 analysts have a buy or overweight rating on shares of Mastercard as of Tuesday morning. The average target price of all analysts surveyed by FactSet is $309.47.
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ceb8a90360e230b6be0a52dc83d55718 | https://www.cnbc.com/2019/10/29/merck-mrk-earnings-q3-2019.html | Merck profit beats estimates as Keytruda sales top $3 billion for the first time | Merck profit beats estimates as Keytruda sales top $3 billion for the first time
VIDEO2:2702:27Merck, Pfizer post earnings beatsSquawk Box
Drugmaker Merck blew past Wall Street expectations for third-quarter profit on Tuesday, as sales of its blockbuster immunotherapy Keytruda crossed the $3-billion mark for the first time in a quarter and beat lofty estimates.
Shares of the Kenilworth, New Jersey-based company rose 1.4% to $82.2 in early trading after the drugmaker raised its 2019 profit forecast.
Keytruda has driven much of Merck's recent growth, given its position as a mainstay treatment for newly diagnosed patients with advanced lung cancer, the most lucrative oncology market.
Besides lung cancer, Keytruda's strength was also powered by continued use of the drug in patients with certain types of kidney cancer, Merck said.
Sales of the therapy rose 62.5% to $3.07 billion in the third quarter, sweeping past estimates of $2.88 billion, according to five brokerages polled by Refinitiv.
Profit was also boosted by the company's line of vaccines for diseases, including chickenpox and measles, that brought in revenue of $2.5 billion, an increase of 17%.
Higher demand in China, along with higher prices in the United States, boosted sales of Gardasil, the company's vaccine to prevent cancer caused by human papillomavirus. Gardasil sales rose 26% to $1.32 billion and beat estimates of $994.3 million.
Total sales rose 14.9% to $12.40 billion, surging past estimates of $11.64 billion.
Sales of medicines in China grew by 90%, excluding the impact of a stronger dollar, helping overall revenue grow nearly 15% to $12.40 billion. Analysts had expected quarterly sales of $11.64 billion.
Merck raised its 2019 adjusted earnings forecast to between $5.12 and $5.17 per share from a prior range of $4.84 to $4.94. Analysts were expecting $4.92 per share.
Net income fell to $1.90 billion, or 74 cents per share, in the third quarter from $1.95 billion, or 73 cents per share, a year earlier.
Excluding items, Merck earned $1.51 per share, beating the average analyst estimate of $1.24.
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7859aa2c8099e214fd9d6968c520d890 | https://www.cnbc.com/2019/10/29/ncaa-allows-athletes-to-be-compensated-for-names-images.html | The NCAA will allow athletes to profit from their name, image and likeness in a major shift for the organization | The NCAA will allow athletes to profit from their name, image and likeness in a major shift for the organization
VIDEO4:3504:35NCAA divisions to begin work amending bylawsPower Lunch
The NCAA is embracing "change" and starting the process of allowing student-athletes to profit off of their name, image and likeness, the organization announced Tuesday.
The group's top governing board voted unanimously to allow college athletes to be compensated, though the NCAA's three divisions must still craft their own rules and detail the specifics.
The decision is a major shift for the NCAA, which had historically been steadfast in prohibiting college athletes from being paid, in order to preserve its amateurism rules. The organization sent a letter to California Gov. Gavin Newsom earlier in September opposing the state's "Fair Pay to Play Act," arguing that it would "upend [a] level playing field for all student-athletes."
California became the first state to pass a law that would allow college athletes to get paid for endorsement deals and hire sports agents. Despite the NCAA's latest decision, the organization said California's law is still "likely unconstitutional" and is considering all potential next steps as states continue to address the subject of student-athlete pay. The law takes effect in 2023.
VIDEO1:2201:22NCAA to allow athlete compensation for names and imagesThe Exchange
Student-athletes must still be treated similarly to nonathlete students, the NCAA reiterated in its press release on Tuesday. The NCAA also stipulates that college athletes must not be treated like employees of their respective universities, and that there should be a "clear distinction between collegiate and professional opportunities."
Other priorities for the NCAA's three divisions to address are enhanced principles of diversity, inclusion and gender equity, as well as protecting the recruiting environment going forward.
"We must embrace change to provide the best possible experience for college athletes," Michael Drake, chairman of the Board of Governors and president of Ohio State University, said in a statement. "Additional flexibility in this area can and must continue to support college sports as a part of higher education. This modernization for the future is a natural extension of the numerous steps NCAA members have taken in recent years to improve support for student-athletes, including full cost of attendance and guaranteed scholarships."
Tuesday's decision comes after the NFL Players Association and National College Players Association announced Monday that they would explore ways to ensure that college athletes get a share of revenue stemming from the sale of their name, image and likeness.
An NCAA working group will continue to solicit feedback through April and eventually refine recommendations on how to respond to the state and federal regulatory environment. Each of the three divisions must create new rules no later than Jan. 2021, the NCAA said.
Sen. Richard Burr, R-N.C., said scholarship money received by college athletes who take endorsement money should be treated — and taxed — like income.
"If college athletes are going to make money off of their likeness while in school, their scholarships should be treated like income," Burr said over Twitter. He said plans to introduce legislation that taxes scholarships for college athletes who choose to "cash in."
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bc5fc730c1c7f2fa343233cc94556d94 | https://www.cnbc.com/2019/10/29/oil-markets-us-china-trade-war-in-focus.html | Oil extends losses on expected inventory rise | Oil extends losses on expected inventory rise
A line of oil tankers transporting fuel to the refineries located along the Mississippi River just north of New Orleans, Louisiana.Art Wager | Getty Images
Oil finished lower on Tuesday, extending Monday's losses, pressured by expectations for a rise in U.S. crude inventories and fading optimism over a U.S.-China trade deal.
U.S. crude inventories are expected to have risen by around 700,000 barrels last week, according to a Reuters poll of analysts. The first of two weekly supply reports, from the American Petroleum Institute, is due at 2030 GMT.
Brent crude lost 3 cents, trading at $61.54 a barrel, having fallen 45 cents on Monday. U.S. West Texas Intermediate fell 27 cents, or 0.5%, to settle at $55.54.
Last week, Brent rose by more than 4%, supported by a drop in U.S. inventories and signs of an easing in the U.S.-China trade dispute. This has been weighing on prices for months because of concern it will hit economic growth and demand.
"(U.S. President Donald) Trump and his team have repeatedly stressed the progress made in recent days and the prospect of it being wrapped up earlier than anticipated, although by now we should take this kind of rhetoric with a pinch of salt," said Craig Erlam, an analyst at broker OANDA.
"Brent found resistance around $62 but that may prove temporary if trade headlines continue to improve and central banks keep slashing interest rates."
The U.S. Federal Reserve is expected to cut rates when it concludes its two-day meeting on Wednesday. Investors will also be watching for any indication that further cuts are likely.
"A cautious market sentiment remains in place, with optimism from last week's progress on a China-U.S. trade deal ebbing away," said analysts at JBC Energy in a report.
BP Chief Financial Officer Brian Gilvary was cautious on the outlook for prices, telling Reuters on Tuesday Brent was "finely balanced" at around $60 with more downside than upside risk.
He was speaking after BP reported a drop in profit due to lower oil prices.
After the API report, attention will focus on official inventory figures from the Energy Information Administration due on Wednesday.
Brent has gained 14% in 2019, supported by a deal to cut supply by 1.2 million barrels per day between the Organization of the Petroleum Exporting Countries and allies including Russia.
The producers meet on Dec. 5-6 to decide whether to extend or adjust the decision, which runs until March. The prospect they could deepen the supply cut has also supported prices.
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efbbdb1ad91ecf52111e943869fd26d1 | https://www.cnbc.com/2019/10/29/ok-boomer-teens-use-phrase-to-fire-back-at-older-critics.html | Teens use 'OK boomer' to fire back at older critics | Teens use 'OK boomer' to fire back at older critics
Hero Images | Getty Images
Luca Brennan's friends spent days debating what phrase they'd write on their shirts for their senior panorama photo.
But then Brennan, 17, seized on the two words the teens had used over and over since the end of the summer to push back against adults who annoyed them and friends who they felt acted close-minded.
"OK boomer."
The final picture, which will appear in the yearbook of Centreville High School in Virginia, showed the group of nine students with the words written in blue and white tape across their chests.
In recent months, the phrase "OK boomer" has become a common retort in the parts of the internet inhabited by teenage and young adult users. On Facebook's Instagram, the phrase appears as a hashtag alongside memes and artwork mocking the older generation. On Twitter, the phrase is hurled at someone for making an outdated statement. And on TikTok, where it is arguably the most prolific, it appears in artwork, audios and makeup tutorials as a way to mock an older generation, and the hashtag has been viewed on the platform 18 million times.
"I think a big part of why it has caught on is just, like, baby boomers and older people in general love to complain about younger people on the whole," said Sam Harman, 17, who took part in the "OK boomer" picture. "They'll call anyone younger than them 'millennials,' and doing the same thing to older people by calling them 'boomers' is kind of a push back to that."
The phrase is a culmination of annoyance and frustration at a generation young people perceive to be worsening issues like climate change, political polarization and economic hardship. The 10 teens and young adults who spoke to NBC News about the phrase said "OK boomer" marked a boiling point for Gen Z and younger millennials, who feel pushed around or condescended to by older generations.
The phrase is even being used to sell sweatshirts.
"I feel like it caught on so well because it's catchy and humorous, but it also got such a big reaction out of the older generation, which gave it its power essentially and caused people to use it more," Cassidy Carter, 19, said.
"OK boomer" has begun appearing en mass as comments on videos on TikTok that young people feel are made in bad faith or project an outdated point of view. It's unclear exactly when the phrase was first used and began to gain traction, but many teens say they first began to pick up on it over the summer.
Some teens point to a Soundcloud audio that has also been uploaded to TikTok, which was created by artists Peter Kuli and Jedwill. The Soundcloud audio was posted this month, but a version of the song was posted to Twitter by Jedwill as early as July. Other teens who spoke to NBC News said they began using the phrase after hearing Twitch streamer "CallMeCarsonLIVE" say it. Others said they picked it up from one another.
But regardless of where the phrase originated, its ubiquity among young people is undeniable.
One video on TikTok that exemplifies the rise of "OK boomer" was posted by an adult with the username "TheSnowflakeMelter2024." In the video, the adult used a filter called "Drag Queen Makeup," giving him giant red lips and luscious pink hair, to mock teen environmental activist Greta Thunberg and her speech before the United Nations Climate Action Summit last month.
Of more than 200 comments on the video, nearly every one reads "OK boomer."
"They underestimate us a lot just because of our age and how we're growing up," Saptarshi Biswas, 17, said. "They think we're given everything, but I think another thing they don't realize is that they're making decisions for our future and they aren't really taking responsibility for it, and I think 'OK boomer' is kind of an accountability check."
But young people are split as to whether the term is akin to adults calling them "snowflake." Many say they feel "boomer" is an inoffensive way to brush off criticism from the older generation.
"I don't think 'OK boomer' is a retort on the 'snowflake' name-calling," said Hannah Hill, 20. "It isn't intended in the malicious way that 'snowflake' is aimed at younger generations. It's a funny way the younger people can laugh off the entitlement of some baby boomers. It is a humorous way to say 'OK, whatever' and move on with our lives."
The word also isn't exclusively lobbed at older people. Young people often use it against one another if they feel another person their age is being closed-minded or says something that sounds like it came from an older generation.
"Boomer can be applied more to personality than really what date you were born," said Nick Carver, 17.
Luca Brennan, who came up with the idea for the "OK boomer" picture for his senior panorama photo, agreed.
"A boomer is really more of a type of personality, someone who is intolerant to new ideas and who is ignorant to new ideas," Brennan said. "Stuff like that."
Although teens said they use it with condescending adults online and to tease one another, they said they also direct it at their parents when they feel they're being unfair or overly conservative.
"The one person I've called a boomer is my father. I think it describes him accurately because he's very stubborn and old-fashioned," Brennan said, adding that his father became defensive when the teen replied to criticisms with the phrase.
Brennan said when he was recently critiqued by his father for always being on his phone, he used the phrase "OK boomer," and then explained that older generations were responsible for things like "climate change, the 2008 financial crisis," and "several wars we should not have been in."
"Boomers come from a different era. They're behind the times. They're out of touch," Brennan said.
The rise of the phrase "OK boomer" mirrors the growing anger among young people at the older generation's passivity for the issues facing the world, not only today, but for the issues that young people say will be left to them to figure out once they become adults.
"I think of 'OK boomer' as kind of saying, you're a hypocrite," Carver said. "You're criticizing us for everything we're doing wrong when look at what you created of our world."
VIDEO6:5306:53How TikTok took the world by stormCNBC Reports
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b2c83b38fb6f7d83ce04efe35a466ee3 | https://www.cnbc.com/2019/10/29/peter-thiel-elon-musk-is-too-hard-to-emulate.html | Peter Thiel says Elon Musk is a 'negative role model' because he's too hard to emulate | Peter Thiel says Elon Musk is a 'negative role model' because he's too hard to emulate
Peter Thiel, co-founder of Palantir.Photographer | CNBC
Facebook board member and Presidential Donald Trump supporter Peter Thiel called Elon Musk a "negative role model" because his many innovations make him difficult to emulate.
Thiel, who called himself a "good friend" of the Tesla and SpaceX CEO, made the comment during a debate on stage at UCLA's Internet50 event Tuesday. Thiel was debating Robert Metcalfe, a professor of innovation and entrepreneurship at the University of Texas at Austin, on the question, "Has true innovation stalled?"
Thiel argued in the positive, while Metcalfe took the other side.
"Elon is the counterexample" to the argument that true innovation has stalled, Thiel said, comparing him to former Apple CEO Steve Jobs as a singular great innovator.
"It's a very weird thing where that the go-to story is we have one person who helped develop electric cars and reusable rockets," Thiel said. "But if you tell a young person, 'Why don't you be like Elon?' it's a negative role model where the basic response is, 'Well that's too hard, I can't do that.'"
Thiel said it may be easier to suggest that a young person "start a computer internet company from your college dorm room," which could be an allusion to Facebook's origin story.
Thiel and Musk go way back: Thiel is the co-founder of PayPal, which later merged with Musk's financial services company.
WATCH: Elon Musk's new underground tunnel project will transport cars at 125 mph
VIDEO1:1301:13Elon Musk's new underground tunnel project will transport cars at 125 mphDigital Original
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3bf84c180f3a2e04230068f923ed612b | https://www.cnbc.com/2019/10/29/ralph-lauren-and-lululemon-could-be-a-steal-traders-say.html | Watch these two luxury retail stocks, technical analyst says | Watch these two luxury retail stocks, technical analyst says
VIDEO3:5603:56These luxury stocks are the best bet, traders sayTrading Nation
Ralph Lauren and Lululemon could be the best of a beaten-down retail breed.
TradingAnalysis.com founder Todd Gordon says the two stocks are on his radar for possible breakouts. He says Ralph Lauren's near 3% dividend yield and 12 times forward multiple make it particularly attractive.
"We are holding uptrend support here. This is an interesting value area," Gordon said on CNBC's "Trading Nation" on Monday. "Right at about the $90-$95 region here, we have a test."
Ralph Lauren finished Monday's session at $97.72 per share. It is down over 5% for the year, underperforming the XRT, the ETF that tracks retailers, which is up over 9%. However, Gordon thinks the stock might be due for a breakout.
"If we can hold some support here right around $90 [and] we have a little bit of relief from the Chinese deal — they source a lot of their inputs from China — we could get a little bit of a pop potentially into November 7th earnings," Gordon said.
Retail stocks were in focus Monday after Tiffany reported it was reviewing a $14.5 billion takeover offer from LVMH. The XRT was up around 1% in Monday's session. Gordon says there's another name he's checking out in the bunch.
"There's another one that I really like in terms of luxury kind of athletic apparel — Lululemon. I've held this stock since the $140s. I continue to like it. We don't have earnings until December 5th, but what an amazing, amazing uptrend," he said.
Lululemon has surged nearly 70% this year, so Gordon is warning the stock is getting a bit pricey at current levels. It closed Monday's session at $205.97 per share.
"You're going to start to see a little bit of divergence as we start to hesitate as we push through $200. So, I have my finger on the ejection button here. I love the trend, but if we're to break down through uptrend support, I might kind of bail and take some profits in those positions, but watch that one while we're above support we could continue to go higher, we'll see. Going to let the trend be our friend," Gordon said.
Mark Tepper, president at Strategic Wealth Partners, agrees with Gordon's picks and says Ralph Lauren is the best relative value play.
"What you have here is you have an iconic brand with a cheap valuation. People actually know the name. … Free cash flow yield of around 8%. This is a company that can actually grow earnings high single digits to low double digits for the foreseeable future as long as they execute," Tepper said.
Tepper says the company needs to continue to focus on better blocking and tackling in the U.S., but if they do, the stock could have a potential 20-30% upside from here.
"They really need to continue this movement away from wholesale and towards more direct to consumer. The second thing is international growth. There's a huge opportunity there. They've been making a lot of progress over the last few years and it's an area for growth for them," said Tepper.
Watch CNBC's interview of Lululemon CEO Calvin McDonald at 12:30 p.m. ET Tuesday.
Disclosure: Todd Gordon owns shares of Lululemon.
Disclaimer
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4c28ace50c47828d8edb26f5e5efa17c | https://www.cnbc.com/2019/10/29/stock-market-outlook-for-wednesday-fed-rate-cut-gdp-apple-earnings.html | Fed set to cut rates, GDP report, Apple earnings: 3 things to watch in Wednesday's markets | Fed set to cut rates, GDP report, Apple earnings: 3 things to watch in Wednesday's markets
VIDEO9:0109:01Jim Bianco: A passive Fed is playing with fireFast Money
Here are the most important things to know about Wednesday before you hit the door.
The Federal Reserve is widely expected to deliver a third straight interest-rate cut on Wednesday. Nearly 80% of the fund managers, economists and strategists surveyed by CNBC's Steve Liesman expect a quarter point rate reduction this week. However, 63% believe the Fed will pause cutting rates for the remainder of the year. The respondents believe the next cut will come in February, on average.
All eyes will be on chairman Jerome Powell's signal on where the Fed stands in the easing cycle. The Federal Open Market Committee announcement is scheduled for 2:00 p.m. ET, followed by a press conference with Powell at 2:30 p.m. ET.
Wall Street's top economist Ed Hyman said the anticipated cut will be the market's "magic sauce," giving the economy a needed jolt.
The central bank's rate decision will come hours after the release of U.S. GDP data which is expected to show a further slowdown in the third quarter. Economists surveyed by Dow Jones are estimating gross domestic product increased at a 1.6% annualized pace in the July to September period, down from a 2% expansion in the second quarter.
Consumer spending, the biggest part of the economy, has been the driving force of the longest economic expansion in U.S. history. However, the recent weakness in retail sales, which fell for the first time in seven months in September, could be a sign that the resilience of the consumer is waning.
The earnings season will hit the halfway mark on Wednesday with a slew of quarterly results from high-profile companies including Apple, Facebook and Starbucks.
Apple will disclose its first major hint at how well the iPhone 11 is selling with Wednesday's earnings report including ten days of the sales. Wall Street analysts expect Apple to report $62.9 billion in revenue and $2.84 in earnings per share, according to Refinitiv.
Ride-sharing company Lyft, Yum Brands, chipmaker AMD, Etsy and Volkswagen also report earnings on Wednesday. So far, 78% of the S&P 500 companies that have reported beat analyst expectations, according to FactSet.
Major events (all times ET):
8:15 a.m. ADP Jobs
8:30 a.m. Real GDP (first reading)
8:30 a.m. GDP Prices (first reading)
Major earnings:
General Electric (before the bell)
Yum Brands (before the bell)
GlaxoSmithKline (before the bell)
Simon Property Group (before the bell)
Volkswagen (before the bell)
Apple (after the bell)
Facebook (after the bell)
Starbucks (after the bell)
Lyft (after the bell)
AMD (after the bell)
Etsy (after the bell)
Twilio (after the bell)
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0dd98d2e5dd10c129c2818b8032b7196 | https://www.cnbc.com/2019/10/29/stocks-making-the-biggest-moves-premarket-merck-pfizer-autonation-xerox-alphabet-more.html | Stocks making the biggest moves premarket: Merck, Pfizer, AutoNation, Xerox, Alphabet & more | Stocks making the biggest moves premarket: Merck, Pfizer, AutoNation, Xerox, Alphabet & more
VIDEO0:4800:48Wall Street could see some red arrows at the openMorning Report
Check out the companies making headlines before the bell:
Merck – Merck earned an adjusted $1.51 per share for the third quarter, beating the consensus estimate of $1.24 a share. Revenue came in above forecasts, as well. Merck also raised its full-year outlook amid strong sales of drugs like cancer treatment Keytruda.
Pfizer – The drugmaker beat consensus estimates by 13 cents a share, with quarterly profit of 75 cents per share. Revenue was above analysts' projections, as well. As rival Merck did, Pfizer raised its full-year forecast on strong sales of key treatments.
AutoNation – The auto retailer reported quarterly profit of $1.07 per share, 2 cents a share above estimates. Revenue also beat Street forecasts, helped by upbeat results for financial services among other factors.
Xerox – The office equipment maker earned an adjusted $1.08 per share for its latest quarter, beating the 86 cents a share consensus estimate. Revenue was slightly above Street forecasts and Xerox raised its full-year guidance. The company said it had decided not to sell its consumer finance business.
Corning – The glass products maker beat estimates by 4 cents a share, with quarterly profit of 44 cents per share. Revenue also came in above expectations, helped in part by a strong pricing environment for its display technologies business.
ConocoPhillips – The energy producer beat estimates by 7 cents a share, with quarterly profit of 82 cents per share. Revenue also came in above estimates as well and the company said it would unveil a 10-year capital plan at its analyst meeting in November.
Alphabet – Alphabet reported quarterly earnings of $10.12 per share, below the consensus estimate of $12.42 a share. The Google parent's revenue was slightly above Street forecasts. The bottom line miss comes as the company reports record quarterly expenses as it invests in areas like cloud computing.
Beyond Meat – Beyond Meat reported quarterly profit of 6 cents per share, doubling Wall Street's consensus estimate. The plant-based burger maker's revenue also came in above analysts' projections. The profit was the first ever for the company, but the shares came under pressure after the company said it would need to offer more discounts to deal with growing competition.
T-Mobile US – T-Mobile beat estimates by 5 cents a share, with quarterly earnings of $1.01 per share. The mobile service provider's revenue came in below forecasts. The bottom line results were helped by better-than-expected new subscriber additions.
GrubHub – GrubHub matched forecasts with quarterly profit of 27 cents per share, but the food-delivery service's revenue came in below estimates. GrubHub also gave weaker-than-expected current-quarter guidance, as customers scour competitors to get the best deals.
BP – BP reported a sharp drop in third-quarter profit amid lower production and weaker oil prices, but its earnings did come in above analysts' forecasts.
Boeing – Boeing CEO Dennis Muilenburg will testify today before a Senate panel on the two 737 Max crashes that killed 346 people. In written testimony released ahead of his appearance, Muilenburg acknowledges that the jet maker made mistakes and will take steps to insure that such accidents never occur again.
Marathon Petroleum – The company is set to spin off its chain of gasoline stations, and is also mulling a shake-up of its executive leadership, according to people familiar with the matter who spoke to The Wall Street Journal. The moves are designed to help appease concerns of activist shareholders including Elliott Management.
Texas Roadhouse – Texas Roadhouse beat estimates by 6 cents a share, with quarterly profit of 52 cents per share. The restaurant chain's revenue topped estimates, as well. The company said it is not seeing much customer resistance to higher prices, and is expecting positive comparable restaurant sales for 2019.
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1fe8637a7412cdc2f8dd7e8ba0cc779e | https://www.cnbc.com/2019/10/29/third-quarter-gdp-is-expected-to-be-a-tepid-1point6percent.html | Third-quarter economic growth is expected to be a tepid 1.6%, but markets could look past it | Third-quarter economic growth is expected to be a tepid 1.6%, but markets could look past it
An oil well owned and operated by Apache Corp. in the Permian Basin of Garden City, Texas.Spencer Platt | Getty Images
Third-quarter growth is expected to come in at a weakish 1.6%, with the biggest hits to come from slowing business investment.
The first reading on real GDP for the third quarter is expected at 8:30 a.m. ET Wednesday morning, and it follows a growth pace of 2% in the second quarter. There is also ADP's private sector payroll report at 8:15 a.m. and that is expected to show job growth of just 100,000, according to Dow Jones.
"I think people are going to hold their reaction to those numbers a little bit in advance as they wait to see what the Fed is going to do," said Robert Tipp, chief investment strategist, and head of global bonds and foreign exchange for PGIM Fixed Income. The Fed is expected to cut interest rates by a quarter point Wednesday afternoon. "There's a lot of noise in the GDP number."
Stephen Stanley chief economist at Amherst Pierpont, said he expects GDP to grow by 1.7%. "I think the defining characteristics for me is you have this divide where everything in the economy that is global facing is very weak and anything that's domestically oriented is solid," said Stanley. He expects growth to pick back up in the fourth quarter to 2.5%.
Michael Gapen, Barclays chief U.S. economist, said the market should look through the weak quarter, which he expects grew at 1.5%. But he expects the softness to remain in the fourth quarter, with growth at just 1%.
"The data on business fixed investment has been somewhere between tepid and awful in the quarter. Business fixed investment, we think will subtract a half percent. Net trade will be roughly neutral contribution to growth. The trade deficit narrowed, but there was a decline in trade volume. Both export and import volumes are down," Gapen said. "We also think there will be a little less inventory contribution in Q3."
Hurt by trade wars and the GM strike, manufacturing is the weakest part of the economy. The strike by 46,000 GM workers is expected to put a dent in the government employment report Friday, and just 85,000 jobs are expected to have been added in October, according to Refinitiv.
Gapen said in business investment, equipment spending is expected to be down 4%, after rising about 0.8% in the second quarter. Spending on structures, which includes oil rigs is expected to decline by 12.5% after dropping 11% in the second quarter, he said.
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0565733db9bc7768b7c758fce4cccdc3 | https://www.cnbc.com/2019/10/29/tokyo-inflation-remains-stagnant-after-japans-oct-sales-tax-hike.html | Tokyo inflation remains stagnant after Japan's Oct. sales tax hike | Tokyo inflation remains stagnant after Japan's Oct. sales tax hike
Customers look at fruit for sale at an Akidai YK supermarket in Tokyo, Japan, on Tuesday, Feb. 19, 2019.Kiyoshi Ota | Bloomberg | Getty Images
Core consumer prices in Tokyo, a leading indicator of nationwide inflation, rose 0.5% in October from a year earlier, data showed on Tuesday, staying distant from the Bank of Japan's elusive 2% target and keeping it under pressure to ramp up stimulus.
The data offered the first clue on how a sales tax hike that kicked off in October could affect price growth, which remains subdued despite years of heavy money printing by the BOJ.
The rise in the core consumer price index (CPI) in the Japanese capital, which includes oil products but excludes fresh food prices, was slower than a median market estimate for a 0.7 percent gain and flat from the pace of increase in September.
"Companies aren't translating the tax hike impact onto consumers as much as expected," said Mari Iwashita, chief market economist at Daiwa Securities.
"The BOJ is likely to trim its inflation forecast at its quarterly report for October," she said, adding that the nationwide core CPI is likely to hit 0.5% in October.
Japan's government proceeded with a twice-delayed increase in the sales tax rate to 10% from 8% in October as part of efforts to rein in the country's huge public debt.
To ease the burden from the higher levy, the government started to offer discounts or make childcare services free of charge from October.
When excluding the impact of the tax hike and the childcare discount, core consumer inflation in Tokyo hit 0.34% in October to mark the slowest pace in more than two years, according to the government's estimate.
Years of ultra-loose policy has failed to fire up inflation to the BOJ's 2% target, forcing the central bank to maintain its massive stimulus program despite the strain on financial institutions' profits from near-zero interest rates.
In forecasts made in July, the BOJ was counting on nationwide core consumer inflation hitting 1.0% in the current fiscal year ending in March 2020, including the effect of the higher tax.
The central bank is likely to trim the inflation forecast at the October quarterly report, which will be issued after a rate review on Thursday, sources have told Reuters.
But it is leaning toward keeping policy steady as stable markets, a truce in U.S.-China trade talks and robust domestic demand give it room to save its dwindling ammunition to fight the next recession, they said.
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dd0dd9e319be20cf040b9b1c315d82e5 | https://www.cnbc.com/2019/10/29/top-ge-analyst-tusa-continue-to-see-downside-going-into-q3-earnings.html | Top GE analyst Tusa continues 'to see downside' going into earnings report | Top GE analyst Tusa continues 'to see downside' going into earnings report
People visit the General Electric stand during the China International Import Expo (CIIE) at the National Exhibition and Convention Center on November 7, 2018 in Shanghai, China.VCG | Getty Images
General Electric is set to deliver its third-quarter results on Wednesday morning but J.P. Morgan's Stephen Tusa continues to tell investors to stay away in his latest note.
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ffff17e0d7c275d8a9f0aeffb053ef94 | https://www.cnbc.com/2019/10/29/vc-ben-horowitz-weworks-overly-optimistic-culture-distorted-reality.html | VC Ben Horowitz: WeWork's overly optimistic culture distorted reality | VC Ben Horowitz: WeWork's overly optimistic culture distorted reality
VIDEO2:0202:02Ben Horowitz: WeWork's company culture caused it to lose touch with realitySquawk Box
WeWork's unconventional company culture caused it to lose touch with reality, Silicon Valley investor Ben Horowitz told CNBC on Tuesday.
"The culture was so reality distorted that they couldn't hear what was really going on in the business," Horowitz said on "Squawk Alley." "I've interviewed people coming out of WeWork, [they] didn't know how much money was coming in, how much was going out."
WeWork had an optimistic vision of changing the future of work, but ultimately that strength may have also been one of its weaknesses, the Andreessen Horowitz venture capitalist said. WeWork executives' unrelenting optimism made it so they weren't prepared for how to deal with bad news, he added.
"The downside of an optimistic culture is what happens with bad news, can you actually hear it?" Horowitz said. "Or is it like, 'I don't want to hear bad news.'"
The embattled co-working start-up has had several rough months. Last week, SoftBank struck a deal to take 80% control of WeWork, putting SoftBank's chief operating officer, Marcelo Claure, in place as executive chairman. That's after WeWork withdrew its IPO filing and saw Adam Neumann step down as CEO amid heightened investor skepticism and a dwindling valuation.
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96bfb9070c5b5b0e83ea5a05f7a01ba0 | https://www.cnbc.com/2019/10/29/warren-calls-out-facebook-policy-chief-former-bush-aide-joel-kaplan.html | Warren calls out Facebook policy chief who worked for Bush in plan to clamp down on the 'revolving door' | Warren calls out Facebook policy chief who worked for Bush in plan to clamp down on the 'revolving door'
Facebook vice president of global public policy Joel Kaplan and Facebook CEO Mark Zuckerberg leave the Elysee Presidential Palace after a meeting with French President Emmanuel Macron on May 23, 2018 in Paris, France.Chesnot | Getty Images
Continuing her attacks on Facebook, Sen. Elizabeth Warren, D-Mass., zeroed in on the company's policy chief Joel Kaplan, a former George W. Bush aide.
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Warren, a presidential candidate, mounted her latest strike in a series of tweets Tuesday announcing a plan to clamp down on the "revolving door" between the public and private sector. Warren said Facebook and other large corporations "vacuum up anyone and everyone who leaves one of their government regulators in an obvious effort to leverage their new hire's political connections and use the allure of potential future job offers to extract favorable treatment." Warren's plan would bar "giant corporations, banks, and market-dominant companies from hiring senior government officials for at least four years after they leave public office."
As Warren noted, Facebook is not the only company employing this tactic. Google recently hired former top Department of Homeland Security Official Miles Taylor, whom Buzzfeed News reported "was involved in high-level discussions about immigration enforcement" during the period of the agency's family separation policy, based on emails released through public records requests.
In her tweets, Warren said Facebook's lobbying spend has increased since its hiring of Kaplan.
"Since he was hired, Facebook spent over $71 million on lobbying — nearly 100 times what it had spent before Kaplan joined," Warren tweeted. As Facebook now faces at least three confirmed separate antitrust probes, Warren said "Kaplan is flexing his DC rolodex to help Mark Zuckerbeg wage a closed-door charm offensive with Republican lawmakers."
Facebook declined to comment on Warren's tweets.
Zuckerberg had private meetings with policymakers on both sides of the aisle during a trip to D.C. last month. Among the critics he met with was Sen. Josh Hawley, R-Mo., who has introduced a bill to remove tech's legal immunity from liability for their users' content unless they agree to submit to a third-party audit assessing the so-called political neutrality of their algorithms and content processes.
Kaplan was a strategic hire for Facebook, which has weathered attacks from conservatives who believe the company suppresses their voices due to a liberal slant among employees. People close to Kaplan told The Wall Street Journal that he is not a Trump supporter, but more of a traditional conservative. But his appearance at Justice Brett Kavanaugh's congressional hearing on sexual misconduct allegations last year stirred up Facebook employees who were angered by Kaplan's apparent show of support for the accused judge.
At Kaplan's urging, Facebook halted a project last year that was meant to encourage politically different users to engage in less-hostile ways, according to the Journal. Kaplan reportedly warned the feature could add fuel to claims of conservative bias.
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WATCH: Why Facebook's business model is only now coming under fire
VIDEO6:5506:55Trump Vortex: Why Facebook's business model is only now coming under fireDigital Original
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f406333d2d92fde6d3b0a8cb6b1ce418 | https://www.cnbc.com/2019/10/29/what-happened-to-the-stock-market-tuesday-sp-500-record-ahead-of-fed.html | Here's what happened to the stock market on Tuesday | Here's what happened to the stock market on Tuesday
The Dow fell 20.04 points, or 0.07% to close at 27,071.42. The S&P 500 slipped 0.08% to 3,036.89. The Nasdaq Composite slid 0.59% to end the day at 8,276.85. The S&P 500 notched a fresh intraday record but mixed earnings and a looming Federal Reserve decision kept investor sentiment in check.
The major indexes failed to make any major moves on Tuesday despite the S&P 500 making a new all-time high. In fact, the broad index traded in a range of just 0.4% on the day. Strong earnings from pharmaceuticals such as Merck and Pfizer initially helped lift the S&P 500 to an all-time high. However, disappointing results from Google-parent Alphabet offset some of that optimism. Investors also seemed reluctant to make any big moves before the Fed's announcement on Wednesday.
Shares of food-ordering service GrubHub plummeted more than 43% on the back of weak earnings and disappointing guidance for the fourth quarter. Beyond Meat shares, meanwhile dropped 22% as Tuesday marked the end of the company's lockup period. This means company insiders can sell their stock for the first time since Beyond Meat's IPO.
Monetary policy will be front and center for investors on Wednesday, with the Fed expected to cut rates by 25 basis points. Investors will also look for clues on whether the Fed will continue lowering rates in the future or if they will raise the bar for further easing. Wall Street will also digest earnings from companies such as General Electric, Apple, Facebook and Starbucks. Read more here.
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7b6aeec9050e49fdaf5990ee88d36e4f | https://www.cnbc.com/2019/10/29/your-first-trade-for-tuesday-october-29.html | VIDEO1:1401:14Final Trades: EEM, ITB and moreFast Money
The "Fast Money" traders shared their first moves for the market open.
Tim Seymour was a buyer of the iShares MSCI Emerging Markets ETF.
Dan Nathan was a seller of the iShares U.S. Home Construction ETF.
Brian Kelley was a buyer of Google.
Steve Grasso was a buyer of Slack.
Disclosure
Trader disclosure: Tim Seymour is long AMZN, AAPL, ACBFF, ACRGF, ALEF, AMZA, ACB, APC, APH, ARNA, BA, BABA, BAC, BIDU, BX, C, CARA, CCJ, CF, CGC, CLF, CMG, CNBS, CNTTF, CRLBF, CRON, CSCO, CWEB, CURLF, DAL, DIS, DPZ, DVYE, DYME, EEM, EMH, EUFN, EWM, FB, FDX, FIRE, FLWR, FXI, GE, GILD, GM, GOOGL, GTBIF,GTII, GWPH, HAL, HEXO, HK.APH, HRVOF, HVT, HYYDF, IIPR, INTC, ITHUF, JD, KHRN, KRO, KSHB, LABS, LEAF, LNTH, MAT, MCD, MJNE, MO, MOS, MPEL, MPX, MRMD, NKE, NRTH, OGI, ORGMF, OTC, PAK, PCLO, PHM, PYPL, RH, RIV, RL, SBUX, SQ, STZ, T, TER, TIF, TGOD, TLRY, TNYBF, TRSSF, TRST, TWTR, UA, UAL, VALE, VFF, VIAB, VIVO, VOD, WMD, X, XLY, XRT, YNDX, ZENA, ZYNE, 700. Tim is short IWM, RACE, SPY, TSLA. Tim's firm is long CGC, HEXO, CRON, APH. Tim is on the advisory board of Green Organic Dutchman, Heaven, Kushco, Dionymed, Tikun Olam, CCTV, and Canndescent. Brian Kelly is long GLD. Short Bitcoin and Ethereum. Dan is Long TLT Dec call spread. XLP Nov put spread. SMH Nov put spread. NKE Nov / Dec Call calendar. DIS Nov / Dec Call Calendar. Steve Grasso is long AAPL, BHC, CAR, EVGN, GE, LEN, MSFT, OLN, PFE, SAVE, SNAP, T, TSE, WRK Grasso owns Callable Trigger contingent yield note linked to SPX, RTY, and MXEA. Grasso's kids own EFA, EFG, EWJ, IJR, SPY, TUR. Steve Grasso's firm is long BIOS, COUP, CPB, CUBA, DIA, F, GDX, GE, GLD, GOLD, GSK, HPQ, IAU, IBM, ICE, INTC, KHC, MO, MSFT, NEM, NYCB, QCOM, QQQ, SNAP, SNGX, SPY, SQQQ, T, TAP, WAB, WDR, WRK.
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6d4468b57d64a8c8dd5fbb258276b011 | https://www.cnbc.com/2019/10/30/a-cyberattack-on-asian-ports-could-cost-110-billion-lloyds-projects.html | A cyberattack on Asian ports could cost $110 billion, Lloyd's projects | A cyberattack on Asian ports could cost $110 billion, Lloyd's projects
Containers sit at the Yangshan Port in Shanghai, China, Aug. 6, 2019.Aly Song | Reuters
A cyber attack on Asian ports could cost as much as $110 billion, or half the total global loss from natural catastrophes in 2018, a Lloyd's of London-backed report said on Wednesday.
Cyber insurance is seen as a growth market by insurance providers such as Lloyd's, which specializes in covering commercial risks, although take-up in Europe and Asia remains far behind levels in the United States.
The worst-case scenario in the report was based on a simulated cyber attack disrupting 15 ports in Japan, Malaysia, Singapore, South Korea and China. Some 92% or $101 billion of the total estimated economic costs of such an attack are uninsured, Lloyd's said.
The figure was calculated by simulating the impact of a computer virus carried by ships and which scrambles cargo database records at the ports.
The report was produced by the University of Cambridge Centre for Risk Studies, on behalf of the Cyber Risk Management (CyRiM) project, in partnership with Lloyd's.
Asia is home to nine of the world's 10 busiest ports and is a crucial part of the supply chains for the world's leading companies in sectors from autos to industrial goods, clothing and electronics.
The report estimated that the world's transport sector, including aerospace, would be hit the most, with economic losses totaling $28.2 billion. Manufacturing would take a $23.6 billion hit, while retail would face losses of $18.5 billion.
Countries with links to each port would also be hit. As such, Asian countries would be hit the most, with $26 billion in indirect losses, followed by Europe with $623 million and North America with $266 million.
"We know that the biggest assets for companies are not physical, they are intangible," said Lloyd's Chief Executive John Neal. "With the increasing application of technology and automation, these risks will become even more acute."
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d6b8fbf63ed9af75860279d590a4cf76 | https://www.cnbc.com/2019/10/30/airbus-earnings-q3-2019-planemaker-cuts-full-year-delivery-target.html | Airbus cuts delivery goal on Hamburg plant snags | Airbus cuts delivery goal on Hamburg plant snags
aviation-images.com | Universal Images Group | Getty Images
Airbus cut its full-year delivery goal for commercial jets on Wednesday, as the planemaker struggles with production delays at a newly expanded German plant.
Europe's largest aerospace group expects to deliver "around 860" airliners in 2019 instead of the 880-890 previously targeted, the company said as it posted 1.6 billion euros ($1.78 billion) in adjusted operating income for the third quarter.
The revised delivery numbers and outlook "reflect the underlying actions to secure a more efficient delivery flow in the next years", Chief Executive Guillaume Faury said in the company statement.
The adjusted operating profit figure rose 2% year-on-year as revenue fell 1% to 15.3 billion euros for July-September and net income rose 3% to 989 million euros. The group also trimmed its 2019 free cash flow goal to reflect the revised delivery outlook.
Airbus has been wrestling with delays to its A321 jets at its plant in Hamburg, Germany for around two years, and a top leasing industry executive said earlier on Wednesday that the situation showed no sign of improving.
John Plueger, chief executive of Air Lease Corp, told the Airfinance Journal Asia Pacific 2019 conference that problems at the Hamburg plant were "getting worse, not better".
Asked about Plueger's comments, an Airbus spokesman said: "We are agreeing next deliveries with our customers." The discussions with customers were confidential, he added.
To reach its revised 2019 goal, Airbus must still hand over 289 planes in the final quarter, a little short of its record 297 deliveries in the same period last year.
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8e8c81015ef840bf36e6a7eb52747387 | https://www.cnbc.com/2019/10/30/alexander-vindman-tells-congress-he-tried-to-add-edits-to-white-house-memo-about-trump-ukraine-call.html | National security official tells Congress he tried to add edits to White House memo about Trump Ukraine call | National security official tells Congress he tried to add edits to White House memo about Trump Ukraine call
National Security Council Director for European Affairs Alexander Vindman arrives for a closed-door deposition at the US Capitol in Washington, DC on October 29, 2019.Mandel Ngan | AFP | Getty Images
Army Lt. Col. Alexander Vindman, the top Ukraine expert on the National Security Council, told members of Congress that he tried to edit a White House log of a July call between President Donald Trump and Ukraine's president to include details that were omitted, one lawmaker present at the testimony and another source familiar with it confirmed to NBC News.
Vindman testified in a closed-door deposition before House impeachment investigators that the attempted edits were to reflect Trump mentioning possible recordings of former vice president Joe Biden discussing corruption in Ukraine and Ukrainian President Volodymyr Zelenskiy mentioning Bursima, the company who had hired Biden's son, Hunter, the sources said.
More from NBC News:GOP, Democrats decry attacks on impeachment witness Vindman2 State Dept. witnesses offer insight into extent of Ukraine discussionsMeet the attorney representing a Trump accuser, and other whistleblowers
The July 25 phone call between Trump and Zelenskiy is at the center of an impeachment inquiry being conducted in the House of Representatives. Critics say the alleged pressure on the Ukrainians amounted to Trump abusing his power for political gain in the 2020 presidential election.
VIDEO2:2002:20White House's Mick Mulvaney describes Ukraine hold-up as quid pro quo, then walks it backNews Videos
Vidman's testimony was first reported by The New York Times.
The White House in September released a reconstructed transcription of the July phone conversation and noted it was not a verbatim transcript and that it represented a record of "the notes and recollections of Situation Room Duty officers and National Security Council policy staff" who listen to official conversations.
Several points in the document contain ellipses, including one that involves Trump saying to Zelenskiy: "Biden went around bragging that he stopped the prosecution so if you can look into it... It sounds horrible to me."
Biden has taken credit for getting Ukrainian prosecutor Viktor Shokin removed and has described it as a win for anticorruption in the country. Shokin was widely believed to be soft on corruption, and the United States and other Western countries had called for his removal. The country's Parliament ultimately voted to remove Shokin.
Vindman said he listened in on the July 25 call, and in his opening statement prepared for delivery said he went to the National Security Council lead attorney over his concerns, and that "I did not think it was proper to demand that a foreign government investigate a U.S. citizen, and I was worried about the implications for the U.S. government's support of Ukraine."
The Times reported that Vindman tried to change the reconstructed transcript made by the White House staff to reflect the omissions. But while some of his edits appeared to have been successful, he said, those two corrections were not made.
Vindman did not testify to a motive behind the editing process, and it is not clear why some of his changes were not made, while others he recommended were, the newspaper reported.
Trump and his defenders have denied that there was any quid pro quo related to held-up aid to Ukraine and actions by that government. Trump has described the call as "perfect" and said he did nothing wrong, and has attacked the impeachment inquiry as a "witch hunt."
The House impeachment inquiry was launched after a whistle-blower complaint was initially withheld from members of Congress.
That complaint says that White House officials were so concerned about what the president said in the July call with Zelenskiy that they intervened to "lock down" the transcript of the conversation.
The identity of the whistle-blower remains secret.
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22f7d18277808a2e1e2b326562fdd35e | https://www.cnbc.com/2019/10/30/analysts-preview-facebook-third-quarter-earnings-report.html | Here's what every major analyst expects from Facebook earnings | Here's what every major analyst expects from Facebook earnings
Facebook CEO Mark Zuckerberg makes his keynote speech during Facebook Inc's annual F8 developers conference in San Jose, California, U.S., April 30, 2019.Stephen Lam | Reuters
It's been a rocky couple of weeks for Facebook CEO Mark Zuckerberg and now Wall Street analysts expect him to deliver. There's no shortage of storylines for the social media giant when it reports its third quarter earnings after the bell on Wednesday.
Analysts will be looking for commentary on revenue growth, daily users, regulatory threats, and updates on Facebook's cryptocurrency Libra.
Just last week, Zuckerberg testified in Washington D.C. trying to ease Congressional leaders fears over the company's plan for the cryptocurrency.
Facebook shares are up over 6% this month.
Here's what every major analyst expects from Facebook earnings:
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5d8d1828241c0dddeb85e346eecb59d6 | https://www.cnbc.com/2019/10/30/atts-stankey-heres-why-were-charging-more-than-rivals-for-hbo-max.html | AT&T's Stankey: Here's why we're charging more than Netflix and other rivals for HBO Max | AT&T's Stankey: Here's why we're charging more than Netflix and other rivals for HBO Max
Then-WarnerMedia CEO John Stankey speaks in 2016.John Lamparski | Getty Images Entertainment | Getty Images
AT&T's WarnerMedia CEO John Stankey said Wednesday that even though the company's upcoming streaming service HBO Max is more expensive than rival streaming services, its content will entice people to sign up.
HBO Max will cost $14.99 per month, which is about the same price as a standard HBO subscription today. It'll also be free for the approximately 34 million current HBO subscribers. But it's still more expensive than streaming services from rivals like Netflix, Apple and Disney.
In an interview with CNBC's David Faber, Stankey said the addition of more content on top of HBO's library will entice subscribers who don't have HBO yet.
VIDEO22:2622:26WarnerMedia CEO John Stankey on the launch of HBO MaxSquawk on the Street
"Twice the content for the same price? I've had much more difficult marketing propositions to sell in the market than that," Stankey said. "I have a great deal of confidence that there is probably people who look at that and say there's enough in there for me that I probably want to get into that."
Stankey also said consumers will be interested in HBO Max despite its high price when compared to Disney and Netflix.
"First of all, they're not the same product," he said. "There's some pretty impressive and unique content in [HBO Max]," he said.
At a company event in Burbank, California on Tuesday evening, Stankey revealed key details about HBO Max, the latest entrant to the increasingly crowded streaming sector that will include Disney+ and NBCUniversal's Peacock along with incumbents like Netflix and Hulu.
HBO Max will launch with about 10,000 hours of content, including original content and classic shows. That's less content than some of HBO's competitors.
The company said Tuesday it will spend $4 billion over the next three years building HBO Max. It expects annual incremental revenue, from subscriptions, content and ads to hit $5 billion by 2025, which is the year it should start to positively impact earnings.
There will be 50 HBO Max original shows in 2021. The Batman spinoff film "Joker" will be available at launch, a highlight of WarnerMedia's DC Comics library, which includes both movies and TV shows. The service will have 23 seasons of the animated comedy "South Park," with three new seasons to come. They will debut on HBO Max a day after they're available on Comedy Central.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
VIDEO9:5909:59The streaming war among media giants is heating upTech
— CNBC's Alex Sherman contributed to this report.
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21bd363596515dd3c78d07de6c33b147 | https://www.cnbc.com/2019/10/30/australia-inflation-cools-in-third-quarter-highlights-challenge-for-rba.html | Australia inflation cools in third quarter, highlights challenge for country's central bank | Australia inflation cools in third quarter, highlights challenge for country's central bank
Restaurant and cafe goers fill the Centre Place lane in Melbourne, Australia.Asanka Brendon Ratnayake | Lonely Planet Images | Getty Images
Australian consumer prices cooled a notch last quarter, underscoring the challenge the country's central bank faces in bringing back inflation and interest rates to what is considered "normal" levels.
The headline consumer price index (CPI) rose 0.5% in the September quarter, matching economists forecasts but slowing from 0.6% gain in the previous three-month period.
Annual CPI inflation climbed 1.7%, also matching expectations, data from the Australian Bureau of Statistics (ABS) released on Wednesday showed.
Closely watched measures of core inflation undershot the central bank's 2% to 3% target band for a 15th straight quarter, the longest stretch since the series began.
The most significant price falls in the quarter were automotive fuel and fruits and vegetables, while international holidays, tobacco and childcare had the largest increases.
Prices for utilities and new dwelling purchases by owner-occupiers both fell slightly through the year to the September quarter, while rents recorded only a small rise.
"Annual inflation remains subdued partly due to price rises for housing-related expenses remaining low, and in some cases falling in annual terms," Bruce Hockman, chief economist at the ABS, said.
In a bid to revive stubbornly low inflation and slowing economic growth, the Reserve Bank of Australia (RBA) has chopped interest rates by 75 basis points since June to an all-time low of 0.75%.
Lower lending rates have over the past couple of months helped boost sentiment in the housing market where prices had been in a downfall since 2017 though activity elsewhere remains subdued.
But that has yet to have an impact in government data.
In the third quarter, one of the RBA-favored measures of inflation — trimmed mean — rose 0.4%, unchanged from the prior quarter. On an annual basis, it held at 1.6% against the RBA's target band of 2% to 3%.
The two key measures of underlying inflation — trimmed mean and weighted median — also undershot the RBA's goal, averaging around 1.4% for the year.
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a4ac1b9917b7db8f2d4a28d884f8dbbc | https://www.cnbc.com/2019/10/30/brazil-bolsonaro-says-would-like-to-see-brazil-become-an-opec-member.html | Bolsonaro says would like to see Brazil an OPEC member | Bolsonaro says would like to see Brazil an OPEC member
Brazilian President Jair Bolsonaro attends the Brazil-United Arab Emirates Business Forum in the Emirati capital Abu Dhabi, on October 27, 2019.AFP | Getty Images
Brazilian President Jair Bolsonaro said on Wednesday that he would like Brazil to join the Organization of the Petroleum Exporting Countries (OPEC).
"I personally would very much like Brazil to become a member of OPEC," Bolsonaro said at an investment conference in Riyadh.
He said he would have to consult with his economy and energy ministers to ensure they could follow through if a decision was made.
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9310631bfd6a19a7afda69828021d6ec | https://www.cnbc.com/2019/10/30/court-upholds-conviction-of-martin-shkrelis-ex-lawyer.html | Court upholds conviction of Martin Shkreli's ex-lawyer | Court upholds conviction of Martin Shkreli's ex-lawyer
Martin Shkreli, chief executive officer of Turing Pharmaceuticals LLC, center, and attorney Evan Greebel, left, exit federal court in New York, on Thursday, Dec. 17, 2015.Peter Foley | Bloomberg | Getty Images
An appeals court in New York says the former lawyer of a notorious pharmaceutical executive was properly convicted in a financial fraud case.
The 2nd U.S. Circuit Court of Appeals on Wednesday rejected Evan Greebel's challenge to his December 2017 conviction at a Brooklyn trial.
Prosecutors say Greebel helped Shkreli steal millions of dollars when he was chief executive of biopharmaceutical company Retrophin.
Greebel's lawyer declined to comment. Greebel was the company's outside counsel from 2011 to 2014.
Shkreli was dubbed Pharma Bro and is perhaps best known for boosting the price of a life-saving drug and trolling his critics on social media.
He was convicted in 2017 of fraud for looting Retrophin of $11 million to pay back investors in failed hedge funds he operated. Shkreli is serving a seven-year prison sentence.
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60f043e0da776f42cef1984dd3012773 | https://www.cnbc.com/2019/10/30/diller-defends-zuckerberg-over-false-political-ads-on-facebook.html | Barry Diller defends Zuckerberg's decision to allow false political ads on Facebook | Barry Diller defends Zuckerberg's decision to allow false political ads on Facebook
VIDEO3:3203:32Media mogul Barry Diller: Zuckerberg is right not to censor political adsSquawk Box
Media mogul Barry Diller told CNBC on Wednesday that when it comes political ads on social media, he's in Mark Zuckerberg's corner.
In an interview on "Squawk Box," the IAC chairman launched into a defense of the Facebook CEO and the social media behemoth's decision not to fact-check paid political advertising.
"Here's the thing: He's right. Not only is he right, it's against the law," Diller said. "On broadcast television, you cannot censor political advertising."
The Communications Act prohibits federal broadcasters from censoring certain political advertisements, according to the FCC.
Diller's comments position him as one of the few to publicly defend Zuckerberg's policy.
"How are you going to prove a lie, given most of these commercials in negative advertising are filled with exaggerations and things?" he asked. "I think Facebook has spent billions of dollars to try to tame this."
Facebook's policy to allow politicians and elected officials to promote false and misleading ads came under scrutiny earlier this month after the Trump 2020 campaign promoted a series of ads containing false information about Democrat Joe Biden. Since then, it has become the focus of some politicians and regulators who criticize Facebook as shirking public responsibility and profiting off the spread of misinformation.
"I actually think of all the services, of all these big monopolistic services, Facebook really is the most benign," Diller said.
VIDEO20:4120:41Watch CNBC's full interview with media mogul Barry DillerSquawk Box
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4075264b75a741bd97019e39173c5cad | https://www.cnbc.com/2019/10/30/europe-markets-us-china-trade-and-fed-rate-decision-in-focus.html | European stocks close flat as traders await Fed decision; Deutsche Bank down 8% | European stocks close flat as traders await Fed decision; Deutsche Bank down 8%
European stocks traded lower on Wednesday as traders awaited a decision on interest rates from the U.S. Federal Reserve, while corporate earnings remained high on the agenda.
The pan-European Stoxx 600 closed provisionally 0.06% higher during trade, with banks dropping around 2% as Deutsche Bank shares plunged. Household goods stocks added 1.5%.
The FTSE 100 in London and CAC 40 in Paris both managed to eke out gains of 0.34% and 0.45% by the close.
Investors are looking ahead to an interest rate decision from the U.S. Federal Reserve Wednesday afternoon. The Federal Open Markets Committee (FOMC) is widely expected to cut rates by 25 basis points for the third time this year.
Global stocks initially struck a cautious tone Wednesday amid reports that China is reluctant to commit to U.S. President Donald Trump's demands that it make significant purchases of American agricultural products.
Trump's demands that China buy as much as $50 billion of U.S. farm products has become a major obstacle to trade talks between the world's two largest economies, Reuters reported on Wednesday citing sources briefed on the negotiations.
Reuters also reported that a U.S. official had suggested the "phase one" interim deal may not be signed at a summit in Chile next month, while Beijing's United Nations envoy also hit out at Washington and other UN nations over their criticism of China's detention of minority Muslim populations.
Back in Europe, the U.K. confirmed it will hold a general election on December 12 after Prime Minister Boris Johnson gained approval from Parliament Tuesday night. The early ballot is intended to break the Brexit stalemate which has paralyzed British politics in recent months.
Corporate earnings are high on the agenda after a slew of big bank earnings on Wednesday morning.
Deutsche Bank reported a net loss of 832 million euros ($924 million) for the third quarter, missing analyst expectations as a major restructuring plan continues to weigh on the German lender.
The bank's shares slipped almost 8% by the close, only bettering Italian tire maker Pirelli which shed 10/7% after cutting its guidance.
Credit Suisse reported a higher-than-expected third-quarter net income of 881 million Swiss francs ($886.9 million), a 108% increase from the same period last year, while Standard Chartered reported a net profit of $772 million, a 3% improvement on last year. The Swiss lender's shares slipped 2.6% while Standard Chartered climbed 2.6%.
The biggest gainer in the Stoxx 600 was London-listed Convatec, which surged 10.8% after posting solid third-quarter results and leaving its full-year guidance unchanged.
Fuchs Petrolub jumped 9.3% after the German lubricant maker posted a substantial third-quarter profit beat.
Fiat Chrysler and PSA Peugeot Citroen shares surged9.5% and 4.5% respectively after confirming that they are in discussions over a potential merger aimed at creating one of the world's largest car manufacturers.
L'Oreal shares traded 7.6% higher after the French personal care company posted strong third-quarter numbers.
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abbfc9f4fb74558528640ecc365f6e00 | https://www.cnbc.com/2019/10/30/fed-chair-powell-is-overdue-for-a-press-conference-gaffe-says-wells-fargo.html | Fed Chairman Powell is 'overdue for a press conference gaffe,' says Wells Fargo | Fed Chairman Powell is 'overdue for a press conference gaffe,' says Wells Fargo
US Federal Reserve Chair Jerome Powell attends a "Fed Listens" event in Washington, DC, on October 4, 2019.Eric Baradat | AFP | Getty Images
On the eve of the Federal Reserve's announcement, some on Wall Street started to get flashbacks to Chairman Jerome Powell's past communication miscues.
"We would not be surprised if the market sells off after the FOMC partly because we think Chairman Powell may be overdue for a press conference gaffe," Christopher Harvey, head of equity strategy at Wells Fargo Securities, said in a note to clients on Wednesday.
The central bank is widely expected to deliver a third straight rate cut on Wednesday. Powell is set to take the podium at the press conference at 2:30 p.m. ET following the Federal Open Market Committee announcement.
"The last few times we heard him speak we got the distinct sense that the message he intends to convey is not always received as such by the markets," Harvey said.
Indeed, over the past year Powell has had a few miscommunications that roiled the financial markets. In December, he described the Fed's reduction of its balance sheet asset holdings as being on "autopilot," a signal of tighter policy ahead.
In July, Powell characterized an interest rate cut as a "midcycle adjustment" rather than the beginning of a period of successive cuts that the market was looking for.
"When it comes to commentary, we believe that less is more," Harvey said. "Obviously, requiring a press conference for every Fed meeting suggests the Chairman holds a much different view. We shall see."
— With reporting by Michael Bloom
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b3d919e7a9d5ab51bed50423f15c29db | https://www.cnbc.com/2019/10/30/fed-chair-powell-press-conference-after-rate-cut.html | Watch Fed Chairman Jerome Powell's news conference live | Watch Fed Chairman Jerome Powell's news conference live
Federal Reserve Chairman Jerome Powell was set to speak to media representatives Wednesday following the conclusion of the central bank's two-day policy meeting where it cut rates for a third time this year.
The Fed indicated it may pause rate cuts from here however, leaving markets on edge. The central bank removed a key clause that had appeared in post-meeting statements since June saying that it was committed to "act as appropriate to sustain the expansion." Powell will be asked to elaborate on this change.
The Fed chief will also be asked about his views on the economy generally and how the Fed is handling the recent volatility in the repo markets, where banks go to get short-term funding for their operations.
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Read more: Federal Reserve economist says growth would have been better with negative interest ratesThe Fed is sharply increasing the amount of help it is providing to the financial systemWorries grow over the Fed's efforts to fix funding issues: 'This is all likely to get much worse'
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ffd4bf15e9494f4bf43315e47aa27dcd | https://www.cnbc.com/2019/10/30/fed-decision-interest-rates-cut.html | Fed cuts interest rates, but indicates a pause is ahead | Fed cuts interest rates, but indicates a pause is ahead
VIDEO1:0201:02Federal Reserve cuts interest rates by quarter-pointPower Lunch
The Federal Reserve approved an expected quarter-point interest rate cut Wednesday but indicated that the moves to ease policy could be nearing a pause.
In a vote widely anticipated by financial markets, the central bank's Federal Open Market Committee lowered its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%. The rate sets what banks charge each other for overnight lending but is also tied to most forms of revolving consumer debt.
It was the third cut this year as part of what Fed Chairman Jerome Powell has characterized as a "midcycle adjustment" in a maturing economic expansion.
Along with the decrease came language pointing to a higher bar for future easing.
The FOMC removed a key clause that had appeared in post-meeting statements since June saying it was committed to "act as appropriate to sustain the expansion." Powell had used the phase in early June to tee up the July rate cut, and it has been incorporated into the official language since.
In its place was more tempered language.
"The Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate," the statement said.
Fed Chair Jerome Powell was even clearer in a news conference, saying central bank officials "see the current stance of monetary policy as likely to remain appropriate."
Market participants had been looking for whether the Fed might start to signal that the policy accommodation, which had come following nine rate hikes since December 2015, would be winding down. The new language suggests an increased level of data dependence rather than an ongoing intent to adjust rates lower. While market pricing had been around 100% for a cut at this meeting, traders had seen only about a 25% probability of a move at the Fed's next meeting on Dec. 10-11, according to CME data heading into Wednesday's decision.
VIDEO5:0105:01Stocks drop and bond yields rise after Fed cuts rates for third time since JulyPower Lunch
In their public speeches, Powell and multiple other Fed officials have characterized the U.S. economy as strong, led by solid consumer spending but threatened by exogenous factors such as global weakness, the U.S.-China tariff war and uncertainties associated with Brexit.
The statement continued to view the labor market as one that "remains strong" and economic activity as "rising at a moderate rate." Descriptions of virtually all other benchmarks of activity remained unchanged, though the committee made a minor tweak regarding business fixed investment and exports to note that they "remain weak."
The decision comes the same day that the government reported GDP growth of 1.9% that, while reflecting a deceleration, was above Wall Street estimates for 1.6%. Job gains, meanwhile, have slowed in recent months but are well above the 109,000 or so that the Atlanta Fed estimates are necessary to keep the unemployment rate at the 50-year low of 3.5%.
In addition to the solid performance in the jobs market and in consumer spending, stock market averages are around new highs.
Within the Fed, there has been disagreement about whether additional cuts are needed. Regional presidents Esther George of Kansas City and Eric Rosengren of Boston again voted against a reduction, with both maintaining that the committee should have held the line at the previous rate.
President Donald Trump, on the other hand, has pushed hard for the Fed to keep cutting rates and to resume the quantitative easing program the central bank used during and after the financial crisis to stimulate the economy.
The Fed has been buying bonds again, but officials insist it is an effort to stabilize the funds rate within the target range rather than a resurrection of QE. Still, the central bank balance sheet has expanded by about $100 billion over the past month and is back above the $4 trillion mark, $3.6 trillion of which is in Treasurys and mortage-backed securities.
The expansion was due mostly to growth in Treasurys and T-bills.
Wednesday's statement reflects the recent balance sheet expansion, noting that open market operations will continue at least into the second quarter of 2020, while term and repo operations aimed at stabilizing overnight markets will continue at least through January.
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b4ee3fa346bf395c509c6a748526075f | https://www.cnbc.com/2019/10/30/feds-rate-decision-apple-earnings-and-boeing-testimony-continues.html | What to watch today: Fed's rate decision, Apple earnings, and Boeing testimony continues | What to watch today: Fed's rate decision, Apple earnings, and Boeing testimony continues
U.S. stock futures were little changed ahead of the Federal Reserve's interest rate decision and policy statement this afternoon, following a losing day for the major averages Tuesday. The S&P 500 did set another intraday record high earlier in the session before closing lower, and both the S&P 500 and Nasdaq saw four-day win streaks come to an end. With two trading days left in October, both the S&P 500 and Nasdaq remain on track for their largest monthly gains since June. (CNBC)
The Fed is set to cut its benchmark interest rate today for a third time this year to help sustain the U.S. economic expansion in the face of widespread trade tensions and slower global growth. But the Fed's policymakers will likely frustrate anyone who is hoping for a clear signal about what they may do next, economists say. (AP)Ahead of the 2 p.m. ET release of the Fed decision and Fed Chairman Jerome Powell's news conference a half hour later, investors get ADP's October report on private sector employment at 8:15 a.m. ET and the government's first look at third-quarter GDP figures at 8:30 a.m. ET. (CNBC)
Shares of General Electric (GE) rose more than 6% in the premarket as the industrial conglomerate raised its 2019 forecast after reporting third-quarter earnings and revenue that topped analyst expectations. Among the companies reporting profits after-the-bell today are Apple (AAPL), Facebook (FB), Starbucks (SBUX) and Lyft (LYFT). (CNBC)Shares of Mattel (MAT) jumped about 18% in premarket trading after the toymaker posted better-than-expected earnings for the third quarter and announced it would be hiring a new chief financial officer. Mattel also said auditors had completed their investigation into allegations that the company had made accounting errors in historical periods. (CNBC)
Senate Minority Leader Chuck Schumer said he worries President Donald Trump will shut down the federal government to divert attention from the House's impeachment probe. Funding will lapse on Nov. 21 if Congress cannot pass a spending plan and get Trump's signature on it. (CNBC)* House Democrats release resolution outlining impeachment probe process (CNBC)
National security advisor John Bolton warned in June that Trump's personal attorney Rudy Giuliani may pose an obstacle to improving Washington's relations with Ukraine, according to testimony expected today from a State Department official. (WSJ)
George Papadopoulos, a former Trump campaign aide who was a key figure in the FBI's Russia probe, filed paperwork to run for the U.S. House seat being vacated by Democrat Katie Hill. She announced her resignation Sunday amid an ethics probe into allegations she had an inappropriate relationship with a staff member. (AP)* Cash-strapped Biden campaign and top donors look to beef up fundraising (CNBC)
The U.S. and 22 other countries at the United Nations pushed China to stop detaining ethnic Uighurs and other Muslims, prompting China's UN envoy to warn it was not "helpful" for trade talks between Beijing and Washington. China has been widely condemned for setting up complexes in remote Xinjiang that it describes as "vocational training centers." (CNBC)
Boeing (BA) CEO Dennis Muilenburg is back on Capital Hill today, appearing before a House panel on the company's troubled 737 Max plane and whether aviation safety needs greater oversight. Muilenburg took a remorseful tone on the Senate side Tuesday, recognizing mistakes with the grounded plane implicated in two deadly crashes. (CNBC)
Fiat Chrysler confirmed today it's in talks with French rival PSA Peugeot, its second bid this year to reshape the global auto industry that is facing huge challenges with the transition to electric and autonomous vehicles. The deal would create one of the world's leading automakers worth about $50 billion. (AP)
Juul Chief Executive K.C. Crosthwaite has replaced the company's CFO amid a management shake-up at the embattled e-cigarette maker. Several top executives have left the company, including Chief Administrative Officer Ashley Gould and newcomers Craig Brommers, chief marketing officer, and David Foster, SVP of advanced technologies. (CNBC)
AT&T's (T) WarnerMedia said its HBO Max streaming service will launch in the U.S. in May of 2020 and cost $14.99 a month. HBO Max is one of the newest additions to an extremely crowded streaming market that will soon include Disney+ and Comcast's Peacock. (CNBC)* HBO Max lands exclusive streaming rights to 'South Park' (CNBC)* 'Game of Thrones' prequel pilot not picked up by HBO (CNBC)
The NCAA is embracing "change" and starting the process of allowing student-athletes to profit off of their name, image and likeness. The group's top governing board voted unanimously to allow college athletes to be compensated, though the NCAA's three divisions must still craft their own rules and detail the specifics. (CNBC)
Johnson & Johnson (JNJ) said its testing found no asbestos in its Johnson's Baby Powder. That testing included a single bottle that the FDA had said contained trace amounts of asbestos, prompting J&J to recall a lot of 33,000 bottles earlier this month.
Amgen's (AMGN) adjusted quarterly profit and revenue came in above Wall Street's forecasts. The biotech company also raised its full-year guidance, amid strong sales of its biosimilar drugs.
Mondelez International (MDLZ) reported better-than-expected adjusted quarterly profit and revenue. The snack maker raised its full-year outlook, as sales volume increases across its major markets.
Advanced Micro Devices (AMD) reported adjusted earnings in line with Street forecasts, while revenue was slightly below estimates. The chip maker did report better-than-expected results for its data center business.
Sony (SNE) reported its best ever second-quarter profit, driven by strong sales of its image sensors. That helped offset a drop in earnings from Sony's gaming division.
Edison International's (EIX) Southern California Edison unit said its equipment will likely be found to have been associated with a 2018 California wildfire that damaged more than 1,000 home in Los Angeles and Ventura counties.
Nationals' pitcher Stephen Strasburg delivered eight strong innings in Game 6 of the World Series with Washington on the ropes. Adam Eaton, Juan Soto and Anthony Rendon all contributed home runs in the 7-2 victory that forces a Game 7 against the Houston Astros in the best of four series. (NBC Sports)
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b7b1e7b5030c66caa2813712c6ab2641 | https://www.cnbc.com/2019/10/30/forex-markets-us-federal-reserve-in-focus.html | Euro rises as dollar weakens on questions about more Fed rate cuts | Euro rises as dollar weakens on questions about more Fed rate cuts
A customer counts cash to pay for two iPhone 6 smartphones during the sales launch at the Apple store in New York, United States, on Sept. 19, 2014.Victor J. Blue | Bloomberg | Getty Images
The euro gained on Thursday as the dollar weakened after the Federal Reserve on Wednesday cut interest rates for the third time this year and left open the question of whether it would cut them further.
The dollar was falling against most currencies, particularly the Chinese offshore yuan, which rose to an 11-week high.
The Fed lowered its benchmark rate by 25 basis points to a target range of 1.50% to 1.75%. But it dropped a reference in its policy statement that it would "act as appropriate" to sustain economic expansion - language considered a sign of future cuts.
Still, lack of an explicit signal the Fed was done with easing for now was taken as less hawkish than expected, helping to drive the dollar down.
"The new, slightly shorter, statement tries to keep their options open and puts them back into a data-dependent mode, but circumstances could mean that they have less optionality than they think," said Tim Foster, portfolio manager at Fidelity International in London.
The euro was up 0.1% at $1.1161, after earlier reaching a 10-day high of $1.11705.
It might fall later, though. Reports later on Thursday are expected to show the euro zone's gross domestic product growth slowed and its inflation rate fell in the third quarter.
The flash HICP inflation data was expected to fall to 0.7% in October from 0.8% in September, according to a Reuters poll. Preliminary third-quarter GDP growth was forecast at 1.1% year-on-year, compared with 1.2% in the second quarter.
"European data wont provide many reasons to be cheerful about the euro," ING analysts said in a note.
The dollar index rose on Wednesday to its highest since Oct. 17 as Fed Chairman Jerome Powell spoke about the central bank's decision. But it slipped 0.4% on Thursday to 97.29, its lowest in a week.
The dollar also fell against the safe-haven Japanese yen , by 0.2% to 108.62 yen. It earlier reached a six-day low of 108.54.
The yen gained after Chile withdrew as host of an APEC summit in November, where the United States and China had been expected to take major steps toward ending a 15-month-old trade war.
Traders still think the world's two biggest economies will arrive at a trade truce. China's Foreign Ministry said on Thursday Chinese and U.S. heads of state have been maintaining contact.
The Chinese yuan rallied to its highest in 11 weeks against the dollar. The offshore yuan last traded hands at 7.0345 per dollar, up 0.1%.
"Because of this sort of lull in U.S.-China trade war, you're starting to see investors getting their toes wet in EM assets," said Stephen Gallo, European head of FX strategy at BMO Capital Markets. "People are hopeful of a year-end Santa Claus rally ... they're hopeful we can get a trade deal."
The Chinese currency was tracking the resurgent risk appetite in emerging markets, instead of leading it, Gallo said.
"I really can't think of a bullish China story for now."
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db7508bbb5f51e31288fbb4e6110a874 | https://www.cnbc.com/2019/10/30/heres-tax-bill-on-powerball-mega-millions-jackpots-so-far-this-year.html | Here's the tax bill on Powerball, Mega Millions jackpots so far this year | Here's the tax bill on Powerball, Mega Millions jackpots so far this year
If you hate paying taxes, at least it's a reason to pretend you're glad you never win big in the lottery.
So far this year, the 12 winners who have hit Powerball and Mega Millions jackpots — worth an advertised $3.3 billion in all — have collectively fed roughly $505.5 million to the IRS. And that won't be the last of it.
"There is still a sizable tax bill coming, for sure," said April Walker, lead manager for tax practices & ethics at the American Institute of CPAs.
Whether winners go with the immediate, reduced cash option (most do) or an annuity stretched across three decades, 24% is withheld for federal taxes. Yet because the top tax rate of 37% is applied to income above $510,300 (single tax filers) and $612,350 (married couples filing jointly), more will be owed at tax time.
A customer purchases Powerball lottery tickets for a $700 million jackpot at a newsstand in New York City, August 23, 2017.Brendan McDermid | Reuters
So far this year, Powerball and Mega Millions have each had six jackpot winners. In all instances, the cash option was chosen instead of the annuity.
For Mega Millions — with winning jackpots ranging from $168 million to $522 million — winners' cash options have totaled $1.06 billion. The 24% federal tax withholding totaled $254.3 million, reducing the collective take to $805.75 million.
Powerball winners' cash options also have totaled just over $1 billion, with jackpot amounts ranging from $80 million to $768.4 million. After the 24% federal withholding of $251.1 million, winners were left with $789.9 million.
For illustration purposes: If winners were unable to reduce their taxable income at all, another 13% — the difference between the 24% withheld and the top tax rate of 37% — would be due to Uncle Sam. Collectively, that would be another $273.9 million or so going to federal coffers ($779.4 million altogether).
Of course, those lottery wins contribute just a drip in the federal tax bucket. Income taxes paid by individuals will account for about $1.8 trillion, or 50%, of the government's estimated $3.6 trillion in revenue for fiscal year 2020.
Local coffers also benefit as well. Depending on where the ticket was purchased, state taxes ranging from zero to more than 8% also would be applied.
VIDEO14:1814:18How the Mega Millions and Powerball lotteries workBusiness News
Like the federal withholding rate on jackpot wins, the amount withheld for state taxes might also be less than what you'll owe.
"They might withhold at, say, 5%, but the rate you pay might be 6%," Walker said.
"Winners have to plan for any additional amount that will be due next April to the IRS and the state," she said.
There are ways to reduce the amount of winnings that gets taxed, although not many. The charitably inclined can lower their taxable income by making a cash donation of up to 60% of their adjusted gross income and carry forward, up to five years, any excess amount.
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Some lottery winners set up their own charitable foundation or similar option, such as a donor-advised fund, and donate a portion of their windfall to it.
"That would be a way to direct charitable contributions over a period of time but take the deduction in 2019," Walker said.
Powerball's jackpot is $150 million ($96.4 million cash option) for Saturday night's drawing. The Mega Millions' jackpot is $118 million (cash option of $79.3 million), with the next drawing Friday night.
Your chance of winning Powerball is about 1 in 292 million. For Mega Millions, it's 1 in 302 million.
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7433c07f80f88910af061fc07e301862 | https://www.cnbc.com/2019/10/30/jim-cramers-mad-money-recap-stock-picks-oct-30-2019.html | VIDEO1:1401:14Cramer Remix: These are two of my top stock picksMad Money with Jim Cramer
CNBC's Jim Cramer thinks investors need to start considering consumption time and the federal government as a weight on Apple, Facebook and other tech stocks. The "Mad Money" host sits down with Wingstop CEO Charlie Morrison to get a read on what's driving the company's growth. Later in the show he bets that Spotify shares are gaining momentum coming off its latest quarterly earnings and says that Biogen could be on its way to being a $100 billion company.
Apple CEO Tim CookSpencer Platt | Getty Images
Apple and Facebook both recorded top- and bottom-line beats in their quarterly reports Wednesday afternoon, but their stocks barely reacted to the news in after-market trading.
CNBC's suspects challenges for the tech titans may be afloat.
"While Facebook and Apple both reported strong numbers, I think their stocks should've been up much more than they are in [the] after hours," the "Mad Money" host said. "I'm sensing some skepticism ... creeping in about both of them and I suspect some of it has to do with twin constraints of time and government."
Charles Morrison, CEO, WingstopScott Mlyn | CNBC
Wingstop is counting on its advertising, digital and delivery strategies to help power through another year of same-store sales growth, CEO Charlie Morrison told CNBC.
The restaurant chain is approaching its 16th consecutive year of positive comp sales, he said. In its most recent quarter, Wingstop grew its advertising spending more than 50% to $12.7 million and expanded its online business to nearly 36% of domestic sales. Delivery is now offered at 80% of its U.S. restaurants.
"We have a bright future ahead of us — a lot of runway for growth not only here in the U.S. but across the world," Morrison said in an interview with Cramer.
Daniel Ek, chief executive officer and co-founder of Spotify ABAkio Kon | Bloomberg | Getty Images
Spotify has solved a number of pressing questions that made investors skeptical about owning the stock, Cramer said.
The music-streaming platform surprised Wall Street on Monday when it recorded a profit including robust subscriber growth in its third quarter, sending the stock up more than 16% that trading day. The stock is now up more than 23% on the year, and the host believes there's more upside on the way.
"The company just reported a game changer of a quarter, and even after that rally, the stock's basically back to where it was when it came public in a direct listing last year," he said.
Employees at Biogen in Cambridge, Mass.Suzanne Kreiter | The Boston Globe | Getty Images
Biotech firm Biogen could double its market cap on regulatory approval for its experimental Alzheimer's drug, aducanumab, Cramer said.
Biogen, with a $54.1 billion market cap as of Wednesday's close, "could be worth twice that if all goes well" with the Food and Drug Administration, the host said.
In Cramer's lighting round, the "Mad Money" host delivers callers his thoughts about their favorite stock picks of the day in rapid speed.
Cedar Fair: "Cedar Fair is up. ... Six Flags is down. You've got the right one, Sandusky, Ohio."
: "I think Square is too low. ... I think it's time to start thinking [it's time] for it to do something."
Disclosure: Cramer's charitable trust owns shares of Apple and Facebook.
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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62cad8153b19198fb04cfc6f58861916 | https://www.cnbc.com/2019/10/30/lakers-delta-extend-partnership-now-offering-ticket-exchange-service.html | Los Angeles Lakers, Delta extend partnership; now offering ticket exchange service | Los Angeles Lakers, Delta extend partnership; now offering ticket exchange service
Los Angeles Lakers forward LeBron James (23) moves to the basket against Denver Nuggets guard Jamal Murray (27) during the second half at Staples Center, March 6, 2019.Gary A. Vasquez | USA TODAY Sports | Reuters
The Los Angeles Lakers and Delta Air Lines extended their partnership on Wednesday, allowing Atlanta based company to remain the "exclusive airline partner" of the team.
To celebrate the deal, Delta and the Lakers agreed to launch "Showtime Seat Exchange," a charitable trading service which will allow season ticket holders to receive an airline ticket in exchange for tickets to one of the four available Lakers home game.
"We are incredibly proud to partner with Delta on the launch of 'Showtime Seat Exchange'," Tim Harris, the Lakers President of Business Operations, said in a statement. "For almost a decade, Delta has worked together with the team to create unique and innovative programs that give back, and this initiative is yet another example of their continued commitment to Lakers fans and the community."
Fans can gift tickets to one of the following Lakers home games: the Nov.15 contest against the Sacramento Kings, the Dec. 22 outing against the Denver Nuggets, the Jan. 31 (Portland Trail Blazers), or the March 15 (Nuggets). Once the exchange program reaches 50 tickets, the service will close.
For their donation, ticketholders will receive domestic, roundtrip Delta vouchers "to be used within one year from the date of issue." Local charities that will receive the game tickets include After-School All-Stars, Bob Hope USO, Junior Achievement of Southern California, and KIPP LA public schools.
"The launch of 'Showtime Seat Exchange' allows our organizations to make a strong, aligned impact, connecting our community and customers through this unique program," Scott Santoro, Delta's Vice President of Los Angeles and West Sales, said in the statement.
The exchange service for the Nov. 15 game is now open at Lakers.com/showtimeseatexchange. The service will close on Nov. 5 or when 50 tickets are donated. Tickets for this game will be given to the After-School All-Stars organization.
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a5ec160fe02d8bc1a47956eaef78b663 | https://www.cnbc.com/2019/10/30/malaysia-environment-minister-on-renewables-lynas-haze-husband.html | Malaysia is targeting a higher level of renewables in its energy mix by 2025, says its environment minister | Malaysia is targeting a higher level of renewables in its energy mix by 2025, says its environment minister
VIDEO3:4403:44Malaysian minister on reducing the country's carbon footprintSquawk Box Asia
Southeast Asian country Malaysia is looking to use a higher percentage of renewables in its energy mix in the next five years, its environment minister said on Tuesday.
Yeo Bee Yin, who is Malaysia's minister for energy, science, technology, environment and climate change, said the country is targeting to generate 20% of its electricity from renewable energy sources by 2025 — up from 2% currently.
Playing down the possibility of a carbon tax, Yeo suggested that solar energy is a viable option for Malaysia, a tropical country.
"We are a developing country. We want to look into what will be the best solution, as in the best economical solution for us first before looking into taxing ... people (more). For example, energy efficiency. Energy efficiency saves your electricity bill as well as decarbonizing. Can we incentivize that?"
For instance, "solar is getting cheaper; can we make it cheaper so that people go into it?" she told CNBC at Singapore International Energy Week.
As the cost of renewables becomes more competitive with fossil fuels, interest in cleaner energy solutions grows.
Neighboring Singapore said on Monday it plans to speed up the use of renewable energy, particularly in solar, the country's trade and industry minister told CNBC.
Malaysia has witnessed several high profile pollution cases recently including chemical dumping in the south of the country and haze from fires in Indonesia.
There have also been concerns about Malaysia's August decision to extend a license for Australia's Lynas Corp for processing rare earth minerals, due to worries about radioactive waste from the production process.
Lynas has said the low-level radioactive waste is not hazardous, Reuters reported.
Yeo told CNBC that Lynas' license was extended to the company with tougher terms attached and that the Australian company will have to manage their production process and waste disposal to ensure that there will be no radioactive waste in four years.
The Malaysian prime minister's office had said that not renewing Lynas' licence would lead to job losses. It would also have a "negative impact on Malaysia's credibility as a business-friendly country," Reuters reported.
Yeo also faced calls for resignation over concerns that an Indonesia subsidiary of Malaysia's IOI Corporation — linked to her husband's family — is one of the entities that allegedly caused forest fires which spread heavy pollution or haze across the region in September. IOI has refuted the allegations, Malaysian newspaper The Star reported.
When asked by CNBC on whether there is a conflict of interest, Yeo said:
"On the haze problem ... Indonesia has full power to investigate and to charge any companies, whether they are Malaysian, Singaporean, Chinese or Indonesian. Any company that is found to be a culprit of starting forest fires — if they think that any companies do that — they can charge them and they have full power. And Malaysia is in the position that they should charge them without fear or favor."
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087c0cddadfb6a1dfa8b794d2ba1078b | https://www.cnbc.com/2019/10/30/more-than-half-of-adults-over-50-would-rather-die-than-do-this.html | More than half of adults over 50 would rather die than do this | More than half of adults over 50 would rather die than do this
Mary Smyth | Moment | Getty Images
For older adults, perhaps nothing is scarier than the prospect of spending their later years in a nursing home.
More than 1 in 2 adults aged 50 and over said that they would rather die than live in a long-term care facility, according to a recent survey from Nationwide Retirement Institute.
The organization took an online poll of 1,462 people in that age cohort from March 25 through April 10.
Loneliness, loss of independence and being without family were some of the major drivers behind their apprehension toward nursing homes, Nationwide found.
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In addition, nearly 70% of participants also said that one of their top fears in retirement is out-of-control health-care costs, including nursing home expenses.
They have good reason to worry.
A healthy 65-year-old couple retiring this year can expect to spend $285,000 on health-care costs in retirement, including Medicare premiums, copays and prescription drugs, according to data from Fidelity Investments.
VIDEO3:0803:08How to keep future health care costs down in retirementThe Exchange
And that's before adding in the cost of long-term care, which runs as high as $102,200 annually for a private room in a nursing facility, according to Genworth Financial.
"A major misconception is believing that you have a plan to cover long-term care expenses and not actually starting it," said Kristi Rodriguez, vice president of thought leadership for Nationwide Financial.
Dennis Macdonald | Getty Images
More than 1 in 3 of the participants in Nationwide's survey said that they've failed to discuss long-term care insurance expenses with anyone.
If nobody talks about it, misunderstandings around managing those costs will persist, said Rodriguez.
"The biggest misconception is that people think long-term care costs will be covered by Medicare," she said.
Original Medicare may pay some of the cost for up to 100 days in a skilled nursing facility for rehabilitation after a qualifying hospital stay.
The program won't cover the cost of service if you're infirm and require a long-term stay in a care facility or if you need help at home with eating, bathing and other activities of daily living.
"You're going to need more than 100 days of service if you're caring for older people," said Rodriguez.
VIDEO1:4501:45Three retirement myths debunkedRetire Well
There are different ways for retirees to address nursing home needs, including using traditional long-term care insurance or buying life insurance that covers some care benefits.
Regardless of how you tackle this problem, talk with your family members and work with a financial advisor to draw up a strategy.
Rodriguez of Nationwide has three questions to jump start the discussion with spouses and relatives:
1. Where do you see your future? Retirees may spend their early years traveling, but they tend to slow down as they age. If you're having this conversation with a spouse, think about the lessons you might have learned by watching your parents or grandparents age. What would you do differently?
2. Where do you want to be? This question helps people address the concept of where they want to age: Do they see this happening at home? Do they expect to get care in an assisted living facility? Three out of 4 of the people polled by Nationwide would rather receive care at home.
3. Who will help to provide care? Be honest if you envision your children or your spouse providing care should you remain at home. Caregivers who are still working could see their wages and retirement savings take a hit.
"There's also the indirect cost of family strain," said Rodriguez. "Families need to talk about it."
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14011796c079f11fd94ec3db4240e994 | https://www.cnbc.com/2019/10/30/oil-markets-cushing-crude-stocks-in-focus.html | Oil falls 1% as US inventory rises | Oil falls 1% as US inventory rises
Workers extracting oil from oil wells in the Permian Basin in Midland, Texas on May 1, 2018.Benjamin Lowy | Getty Images
Oil prices extended losses Wednesday after a steep U.S. crude inventory build added to worries about a possible delay in resolving the U.S.-China trade war, which has hurt global oil demand.
According to the US Energy Information Administration, US crude inventories increased by 5.7 million barrels from the previous week. US inventories are now at 438.9 million barrels, which is about 1% above the five year average for this time of year, the EIA said.
Brent crude fell $1.07 to settle at $60.52 a barrel. U.S. West Texas Intermediate (WTI) crude fell 48 cents, or 0.9%, to settle at $55.06 a barrel.
The United States and China were continuing to work on an interim trade agreement, but it may not be completed in time for U.S. and Chinese leaders to sign it next month, a U.S. administration official said.
"Selling came courtesy of the fading optimism over trade and a Fed rate cut. Risk assets were dealt a blow as market players worried that the U.S. and China would delay settling their trade differences," PVM analyst Stephen Brennock said.
However, U.S. crude inventories fell by 708,000 barrels in the week ended Oct. 25 to 436 million, compared with analysts' expectations for an increase of 494,000 barrels, according to the American Petroleum Institute, an industry group.
Still, crude stocks at the delivery point for WTI at Cushing, Oklahoma were up 1.2 million barrels compared to the previous week, dragging on futures prices for the benchmark.
"Stocks at the WTI delivery hub have been trending higher since late September, which has put pressure on the prompt WTI time spreads, with the December/January spread this month having shifted from backwardation to a contango," Dutch bank ING said in a note.
Investors are also awaiting the outcome of the Federal Reserve's two-day policy meeting this week. The Fed looks set later on Wednesday to nudge along a U.S. economy that is being hampered by slowing investment and weak growth overseas. It would be the third cut this year.
A rate cut would help support oil prices as a stronger economy typically implies higher demand for crude, while falling inventories suggest the market is coming into balance.
The Organization of the Petroleum Exporting Countries and other producers including Russia have cut oil output since January to support prices.
The U.S. government's Energy Information Administration issues its weekly inventory report at 10:30 a.m. EDT.
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26d85dbf344e2243290f1193d61ca664 | https://www.cnbc.com/2019/10/30/rockets-tilman-fertitta-on-the-big-mistake-young-owners-make.html | Houston Rockets' owner Tilman Fertitta on the big mistake young business owners make | Houston Rockets' owner Tilman Fertitta on the big mistake young business owners make
VIDEO0:3100:31Tilman Fertitta - Know your numbersInvest in You: Ready. Set. Grow.
Tilman Fertitta knows a thing or two about business. As the CEO of Landry's, a privately owned hospitality corporation with over 600 properties, and owner of the NBA's Houston Rockets, it is fair to say Fertitta is a successful businessman.
For young entrepreneurs seeking their own success, Feritta has one piece of advice: Know your numbers. He says not knowing your numbers is the biggest mistake that young business owners make.
"You've got to understand your cost of sales, understand your revenue and you understand your profits. If you don't know your numbers you'll never be successful," Fertitta recently said in an interview with CNBC. He added that not knowing your numbers can affect your home life as well.
Lack of information about income and expenses causes financial anxiety and Fertitta's advice applies to everybody.
Sixty-three percent of millennials report that they are financially anxious and 55% feel stressed.
A simple answer to this issue could be to create a personal budget, and stick to it.
Research from SlickDeals.net reveals that 74% of people say they have a budget – but 79% of those people don't stick to it!
More from Invest in YouThose weekly splurges cost $7,400 extra annually. Here are the biggest budget bustersHow much you can expect to get from Social Security if you make $75,000 a yearI was 'credit invisible.' That made it very hard to have a life
According to the survey, the top list of categories where respondents overspent was not surprising — online shopping, food and subscription services.
Starting a budget can be daunting and keeping track of that budget can be downright horrifying, but there are steps you can take to make it easier.
Start by using a budgeting app. Apps like Mint are free and provide categorical spending each month. YouNeedABudget is another that can help you start budgeting, but it will cost you after its 34-day free trial.
Others recommend an old-fashioned method — the spreadsheet. Douglas Boneparth, president of Bone Fide Wealth, suggests looking at three to six months of spending and creating your own budget in a spreadsheet. While this exercise is tedious it will give you an intimate knowledge of your spending habits.
Knowing your numbers is key to running any business but perhaps, more importantly, it is the key to peace of mind.
CHECK OUT: How to get Costco savings without buying the $60 membership via Grow with Acorns+CNBC.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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836ed39e6439fd2a72b66bba8f1322d8 | https://www.cnbc.com/2019/10/30/schumer-alexander-vindman-should-be-protected-after-impeachment-testimony.html | Chuck Schumer wants whistleblower protections for Ukraine expert Alexander Vindman after impeachment testimony | Chuck Schumer wants whistleblower protections for Ukraine expert Alexander Vindman after impeachment testimony
Lt. Col. Alexander Vindman, (C), director for European Affairs at the National Security Council, arrives at the U.S. Capitol on October 29, 2019 in Washington, DC.Mark Wilson | Getty Images News | Getty Images
Senate Minority Leader Chuck Schumer, D-N.Y., called for a key witness in the impeachment inquiry into President Donald Trump to be given the same protections that are afforded to whistleblowers.
Schumer, in a letter, asked the secretary of the Army and the chief of staff of the Army for a briefing to ensure that Lt. Col. Alexander Vindman, the top Ukraine expert on the National Security Council, "and whistleblowers like him are afforded appropriate protections — both from retaliation and for [the] personal safety of him and his family."
Vindman testified before House investigators Tuesday that he was one of the officials listening in on a phone call in which Trump asked Ukraine President Volodymyr Zelensky to "look into" unsubstantiated allegations against former Vice President Joe Biden and his son Hunter.
Vindman, according to his opening statement, said that he considered that request so damaging to American national security that he reported it to a superior.
Since the announcement of his testimony, Vindman "has been vilified by individuals in the media and elsewhere," Schumer wrote to Army Secretary Ryan McCarthy and Army Chief of Staff Gen. James McConville.
"Although he has served our country for more than 20 years and is a recipient of the Purple Heart after being injured while serving in Iraq, he has been called a variety of derogatory terms and some have even gone so far as to call him a spy and question his loyalty to the United States," Schumer wrote.
Trump himself has criticized Vindman on Twitter, without naming him directly.
"Yesterday's Never Trumper witness could find NO Quid Pro Quo in the Transcript of the phone call," Trump tweeted Wednesday morning. "There were many people listening to the call. How come they (including the President of Ukraine) found NOTHING wrong with it. Witch Hunt!"
Vindman also testified that a memorandum of the July 25 call omitted salient words and phrases, according to a report from The New York Times.
Vindman also said in the closed-door hearing that he unsuccessfully attempted to include those omissions in the partial transcript of that call that was eventually produced, the Times reported, citing three people familiar with Vindman's testimony.
A five-page memorandum of the 30-minute call — which was released in September by the White House a day after House Speaker Nancy Pelosi announced the impeachment probe — included multiple ellipses, which raised concerns that some details were left out of the conversation.
Despite Trump's promise at the time to release the "fully declassified and unredacted transcript," the memorandum notes that it is "not a verbatim transcript" of the discussion.
Two Ukraine advisors from the State Department are scheduled to appear Wednesday for depositions before House lawmakers in the impeachment inquiry into President Donald Trump.
Those hearings before representatives from the House Intelligence, Oversight and Foreign Affairs Committees come a day before the overall chamber is set to hold a vote on a resolution on the guidelines of the impeachment inquiry going forward.
VIDEO1:1901:19How to impeach the President of the United StatesDigital Original
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ebb06dbbd8bb5d659d9646c27cb1507b | https://www.cnbc.com/2019/10/30/trump-gm-toyota-and-chrysler-holding-us-hostage-to-a-dying-planet.html | Trump, GM, Toyota and Fiat Chrysler are holding us hostage to a dying planet | Trump, GM, Toyota and Fiat Chrysler are holding us hostage to a dying planet
Traffic in Los AngelesBarry Lewis | Getty Images
President Donald Trump, General Motors, Toyota and Fiat Chrysler are holding us all hostage to a dying planet.
Four major automakers — Ford, BMW, Honda and Volkswagen — entered into a voluntary compromise agreement with California to limit emissions across the country, recognizing that it is time to accelerate climate action beyond the goals of our current federal government. But the Feds launched a legal action to investigate these companies for antitrust violations, throwing a dirty trick in the way of cleaning up the industry.
And then, in a stunning betrayal of investors and in ignorance of the clear need to transition to a low carbon economy, General Motors, Toyota and Fiat Chrysler decided to side with the president in his attempt to revoke California's authority and help the Trump administration drag the auto industry backward while the rest of the world speeds ahead on climate.
As investment advisor to, and custodian of, New York City's five pension funds, charged with protecting $200 billion in pension fund assets, my job is understanding and anticipating risk. Let me be clear: Climate change is a much more impactful risk to U.S. companies than Trump's empty threats.
Trump's rollback of national and state clean car standards is risking the very future of the American auto industry, not to mention the future of the planet, and automakers that support weak standards are in turn exposing themselves to extraordinary risk.
The existing vehicle emissions standards the Trump administration is dismantling jump-started investment in clean car technologies, resurrected a U.S. auto industry that was on the brink of collapse and boosted job growth in some of the regions hit hardest by the 2008 recession. They challenged the industry and led to more sustainable growth.
For the good of investors and for the good of the planet, they must change.
The Trump administration's rollback would reverse that progress, undermining auto industry clean car investments and triggering the loss of between 89,000 and 202,000 of tomorrow's clean vehicle technology jobs. The rollback threatens the U.S. auto industry's global competitiveness as demand for clean and zero-emission vehicles grows rapidly around the world. To stay at the front of the pack, the U.S. auto industry needs to invest in clean car technologies.
And these rollbacks would hit the wallets of working Americans — costing drivers about $460 billion — $3,300 per new vehicle — at the pump in the coming years, siphoning that money from the pockets of Americans and transferring it into the oil industry's coffers instead.
Finally, the rollback would expose automakers, the auto industry and the entire U.S. economy to further climate risk and economic uncertainty. As the IPCC Special Report on Climate Change makes clear, the transformation of transportation, the highest greenhouse-gas-emitting sector in the country, is absolutely crucial to keeping the planet from warming beyond 1.5 degrees Celsius and staving off the worst impacts of climate change. Trump's rollback and repeal of California's exemption are likely to go through multiple rounds of legal challenges, robbing companies of the economic and regulatory stability that is the linchpin of sound strategic business and investment decision-making.
That's why I and a coalition of 25 major investors with $1.1 trillion in collective assets called on General Motors to sign on to the compromise agreement with California, which would provide the regulatory certainty they need. Doing so would have signaled to the marketplace and to investors that automakers are prepared to protect their investments, profits and their workforce beyond the limited term of the Trump administration and prepare for a carbon-constrained future.
Instead, their failure to do so reveals a shortsighted approach to business that will prove costly to automakers, the auto industry, the broader U.S. economy and the planet in the long run.
For the good of investors and for the good of the planet, they must change.
— By Scott Stringer, New York City Comptroller, who is the investment advisor to — and custodian and a trustee of — the $200 billion New York City Pension Funds
VIDEO6:5706:57Former Chrysler CEO: Should have national standard on fuel efficiencySquawk on the Street
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