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c3b1df3c51964be152645e3c7590a55e | https://www.reuters.com/article/global-forex/forex-dollar-sags-amid-lingering-trade-conflict-concerns-xi-speech-in-focus-idUSL3N1RN01A | FOREX-Dollar sags amid lingering trade conflict concerns, Xi speech in focus | FOREX-Dollar sags amid lingering trade conflict concerns, Xi speech in focus
By 3 Min Read
* Dollar headed for 3rd session of losses vs yen
* Chinese president’s speech awaited for cues on trade issues
* Euro steady after receiving lift from ECB Draghi comments
* Loonie near 6-week highs following bounce in oil prices
By Shinichi Saoshiro
TOKYO, April 10 (Reuters) - The dollar sagged against its peers on Tuesday as rhetoric from Chinese and U.S. policymakers kept alive concerns about a trade conflict between the world’s two largest economies and undermined support for the greenback.
The near-term market focus was on Chinese President Xi Jinping, who is due to deliver remarks at a conference in Boao, China later on Tuesday.
It will be his first public reaction to the tariff standoff and investors are wary about the impact the president’s views could have on the broader financial markets.
Global markets took a hit last week as U.S. President Donald Trump upped the ante in a trade dispute with China, reviving investor jitters about the impact a tariff war could have on the world economy.
The dollar was on the defensive against the yen, which tends to draw demand in times of market turmoil and political tensions.
The greenback was 0.05 percent lower at 106.740 yen after posting modest declines overnight. It was headed for its third session of losses versus its Japanese peer.
“We are still at a stage of trade tensions where the United States and China are exchanging threats. Algo-driven accounts react to each development and stir the equity market, in turn impact currencies,” said Yukio Ishizuki, senior currency strategist at Daiwa Securities.
“Geopolitical risks are also weighing on the dollar against the yen, on concerns that U.S.-Russia relations could worsen over the Syria issue,” Ishizuki said.
U.S. President Trump on Monday promised quick, forceful action in response to a suspected chemical weapons attack in Syria, appearing to suggest a potential military response. Trump has castigated Russia for backing Syrian President Bashar al-Assad.
The euro was steady at $1.2324 after rising about 0.35 percent the previous day, when it touched a six-day high of $1.2331.
The common currency was lifted after European Central Bank President Mario Draghi said on Monday that the slide in stock markets this year has not materially impacted euro zone financial conditions, suggesting policymakers remain calm about the recent market volatility.
The dollar index against a basket of six major currencies was little changed at 89.829 after shedding 0.3 percent on Monday.
The Canadian dollar hovered near a six-week peak reached against the dollar overnight on higher oil prices and a business survey from the Bank of Canada that supported expectations for further interest rate hikes.
The loonie was steady at C$1.2703 per dollar and in close reach of C$1.2687, its strongest since Feb. 27 set on Monday.
The Australian dollar, another commodity-linked currency, was a shade higher at $0.7699 after advancing about 0.3 percent overnight. (Editing by Sam Holmes)
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3fdafcba496f25016d55cd4f29431bd5 | https://www.reuters.com/article/global-forex/forex-dollar-slips-and-yuan-soars-as-investors-eye-biden-presidency-idUSL4N2H00PA | FOREX-Dollar slips and yuan soars as investors eye Biden presidency | FOREX-Dollar slips and yuan soars as investors eye Biden presidency
By Tom Westbrook0 Min Read
* Dollar, yen sold this week as stimulus hopes boost mood * Yuan leaps as China returns; strong fix, Biden prospects boost * 10% gain in oil prices this week lifts oil exporters' currencies * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E By Tom Westbrook SINGAPORE, Oct 9 (Reuters) - The dollar drifted toward a small weekly loss on Friday, while the Chinese yuan soared to a 17-month high, as investors wagered on a Joe Biden presidency and on more U.S. stimulus spending. The yuan's leap, when China's markets reopened after the Mid-Autumn break, was partly a catch-up since the offshore yuan has gained against a softening dollar during the week. But as it extended gains beyond 1%, its biggest daily jump in nearly two years, traders said it provided one of the clearest indications yet that Biden's lead in the polls is driving bets on a steadier Sino-U.S. relationship. A stronger-than-expected setting of the yuan's trading band also signalled that policymakers in China don't mind its rise. The yuan was last up 1% at 6.7218 per dollar in onshore trade and it rallied half a percent to 6.7083 per dollar offshore. The dollar eased 0.1% against a basket of currencies and it is down 0.4% for the week. "I think the main message is that the (People's Bank of China) is allowing further renminbi appreciation at this level," said Ken Cheung, chief Asian FX strategist at Mizuho Bank in Hong Kong. "So markets are positioning for a renminbi rally." The prospect of a Biden administration less inclined toward tariffs and trade disputes was another boost, he added. "Polls are showing that Biden is taking the lead... it means the risks of resuming a new trade war are getting smaller, so I think this is positive for the renminbi." Reuters/IPSOS polling this week put Biden, a Democrat, narrowly ahead of Republican President Donald Trump in five states - Wisconsin, Pennsylvania, Michigan, Florida and Arizona - that will play critical roles in deciding the victor. STIMULUS HOPES A growing expectation that, whoever wins, U.S. stimulus spending will flow has also been weakening the dollar in the short term, by improving investors' mood and their willingness to buy riskier assets such as stocks and commodity currencies. Talks have resumed between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over coronavirus aid plans, two days after President Donald Trump ended them, and investors reckon a Democratic administration would be eager to spend. "The uncertainty is more around whether it will happen before the election and how big it will be," said Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney. "Investor confidence is growing that Biden will win the presidential election by a clear margin, reducing the risk that Trump disputes the result." The risk-sensitive Australian dollar rose 0.1% on Friday to put it a fraction higher for the week, despite analysts interpreting a Tuesday central bank statement as a signal of monetary easing to come. The New Zealand dollar likewise recouped Thursday losses made after another dovish signal from the Reserve Bank of New Zealand and was last up 0.3% at $0.6602. The safe-haven Japanese yen, which has been sold with the upbeat mood, was a tiny bit higher at 105.87 per dollar on Friday. It is down about 0.5% this week. The euro was up 0.1% to $1.1773 and sterling crept higher to $1.2951 and has held firm this week as prospects for a Brexit deal have appeared to improve. Elsewhere, a 10% surge in oil prices this week, on optimism about stimulus and supply disruptions owing to a storm in the Gulf of Mexico and strike in Norway, has boosted oil-linked currencies. The Canadian dollar is set for its best weekly rise in more than two months, adding 0.9% to C$1.3185 per dollar. The Russian rouble has also gained about 1% for the week. ======================================================== Currency bid prices at 10:55AM (255 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar !RIC !RIC !RIC !RIC !RIC !RIC {EUR=EBS} is {EUR=EBS} {EUR=EBS} is {EUR=EBS} {EUR=EBS} {EUR=EBS} invalid is invalid invalid% is is invalid is invalid invalid% Dollar/Yen 105.8250 106.0300 -0.17% -2.54% +106.0270 +105.8300 Euro/Yen 124.64 124.69 -0.04% +2.21% +124.7600 +124.5300 Dollar/Swiss !RIC !RIC !RIC !RIC !RIC !RIC {CHF=EBS} is {CHF=EBS} {CHF=EBS} is {CHF=EBS} {CHF=EBS} {CHF=EBS} invalid is invalid invalid% is is invalid is invalid invalid% Sterling/Dollar 1.2953 1.2933 +0.15% -2.34% +1.2954 +1.2930 Dollar/Canadian 1.3185 1.3197 -0.08% +1.51% +1.3197 +1.3180 Aussie/Dollar 0.7181 0.7168 +0.20% +2.36% +0.7183 +0.7168 NZ 0.6606 0.6582 +0.38% -1.81% +0.6607 +0.6584 Dollar/Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ 124.64 (Reporting by Tom Westbrook; editing by Richard Pullin and Gerry Doyle)
Our Standards: The Thomson Reuters Trust Principles.
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b94384bb3b8cb97878e2d0618b02a61f | https://www.reuters.com/article/global-forex/forex-dollar-trades-near-two-week-low-as-u-s-yields-fall-idUSL1N2M10HQ | FOREX-Dollar trades near two-week low as U.S. yields fall | FOREX-Dollar trades near two-week low as U.S. yields fall
By Ritvik Carvalho3 Min Read
* (Prices sourced from Yahoo! Finance and MarketWatch)
LONDON, April 8 (Reuters) - The U.S. dollar traded near its lowest in more than two weeks versus major peers on Thursday, tracking Treasury yields lower, after minutes of the Federal Reserve’s March policy meeting offered no new catalysts to dictate market direction.
Fed officials remained cautious about the risks of the pandemic - even as the U.S. recovery gathered steam amid massive stimulus - and committed to pouring on monetary policy support until a rebound was more secure, the minutes showed Wednesday.
Fed Chair Jerome Powell will speak at a virtual International Monetary Fund conference later on Thursday.
The dollar index which measures the U.S. currency against a basket of six currencies, edged lower to 92.30 in London trading, after dipping as low as 92.134 on Wednesday for the first time since March 23.
The index rallied to an almost five-month high of 93.439 at the end of last month as the U.S. pandemic recovery outpaced that of most other developed nations, particularly in Europe.
“The Fed minutes delivered no negative surprise for risk sentiment, with the committee reiterating no need to rush into tightening of monetary conditions and further support the recovery,” said Petr Krpata, chief EMEA FX and interest rates strategist at ING.
“We expect the very accommodative Fed to eventually weigh on USD as we move into the summer - rising inflation, yet no signs of imminent rate hikes will push front-end US real rates further into the deep negative, and coupled with the recovering global economy (which should be of a more synchronized nature in 2H21), should weigh on USD.”
The benchmark 10-year Treasury yield was around 1.658% on Thursday, after dipping below 1.63% overnight. It hit 1.776% late last month, its highest in more than a year.
The S&P 500 eked out a modest gain on Wednesday, moving mainly sideways since surging to a record high to start the week.
The chief currency strategist at Citigroup Global Markets Japan, Osamu Takashima, said that the market’s direction is difficult to call, but expects the next move for the dollar to be lower.
“Current market sentiment is mild risk-on, and under such circumstances the dollar will weaken gradually - but no big moves,” he said.
The retreat in U.S. yields has also removed a driver for dollar gains, he added.
The dollar weakened to 109.49 yen, consolidating after retreating from 110.97, its highest in more than a year, reached on March 31.
The euro was almost unchanged from Wednesday at $1.1876, after rebounding from $1.1704, its lowest in almost five months, touched on March 31.
“The vaccination progress in the Eurozone is significantly lagging that of the U.S., and coronavirus infection rates in the Eurozone are on the rise again,” Commonwealth Bank of Australia strategist Joseph Capurso wrote in a client note.
“As such, EUR/USD is vulnerable to a move lower towards 1.1700 in the near-term.”
Reporting by Ritvik Carvalho; additional reporting by Kevin Buckland in Tokyo; editing by Larry KingOur Standards: The Thomson Reuters Trust Principles.
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22dac216020e770339da5def92a6e02c | https://www.reuters.com/article/global-forex/forex-hopes-for-u-s-stimulus-breakthrough-push-dollar-to-lowest-in-more-than-six-weeks-idUSL8N2HC3NV | FOREX-Hopes for U.S. stimulus breakthrough push dollar to lowest in more than six weeks | FOREX-Hopes for U.S. stimulus breakthrough push dollar to lowest in more than six weeks
By Elizabeth Howcroft4 Min Read
* Dollar index falls after Trump’s pro-stimulus comments
* Yuan surges after firmer central bank guidance
* Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E (Updates prices, adds comment)
LONDON, Oct 21 (Reuters) - The dollar extended its losses on Wednesday, hitting its lowest in more than six weeks, after U.S. President Donald Trump boosted hopes for a large fiscal stimulus package, prompting some traders to ramp up bets on riskier currencies.
Lawmakers in Washington have been negotiating intermittently since August, with Democrats arguing for a bigger package to help manage the economic fallout from coronavirus.
Trump raised hopes for a breakthrough on Tuesday by saying he was willing to accept a large aid bill, despite opposition from his own Republican party.
The dollar fell in response to the comments, even though markets generally expect more fiscal stimulus to be passed in the near future regardless of whether it is agreed before the election.
“It’s not a gamechanger – I think the base scenario for the market is that there will be another fiscal stimulus package at some point in the next few weeks or maybe in a few months,” said Thu Lan Nguyen, FX and EM analyst at Commerzbank.
“The market has still reacted positively to it because obviously the earlier the better in the current situation.”
At 1102 GMT, the dollar was down 0.3% against a basket of currencies, at 92.733, having hit a low of 92.685 earlier in the session.
Nguyen said that the day’s currency market moves were not typical “risk-off” moves, as the safe-haven Japanese yen was up around 0.5% against the dollar, close to one-month highs, at 104.845.
Rather, the hopes for fiscal stimulus caused dollar weakness because it boosted long-term inflation expectations for the United States, she said.
“Normally if you have higher inflation the currency appreciates because the market expects higher interest rates. That is not the case for the U.S. at this point any more ... the Fed now wants higher inflation - it’s not going to raise interest rates automatically if inflation’s a little bit higher,” she said, referring to the U.S. Federal Reserve’s policy shift to tolerate higher inflation.
The riskier New Zealand and Australian dollars both advanced, with the Kiwi up 0.8% and the Aussie up 0.6% versus the dollar by 1107 GMT .
The Norwegian crown reached a one-week high of 9.19625 versus the U.S. dollar, and the Canadian dollar rose to its strongest in more than six weeks, touching 1.3081 per dollar .
The euro rose to a one-month high versus the dollar in early trading and was up 0.3% at $1.18575 at 1108 GMT.
China’s yuan surged, in both offshore and onshore trading, led by firmer central bank guidance and recent data suggesting a more sustained recovery in the world’s second-largest economy.
The offshore yuan reached its strongest in two years versus the U.S. dollar towards the end of the Asian session at 6.6278 before easing somewhat. By 1108 GMT, it was up 0.4% at 6.6393 .
Elsewhere, sterling jumped to as high as $1.3071 after the European Union’s chief negotiator said that a Brexit deal with Britain was “within reach”. (Reporting by Elizabeth Howcroft, editing by Larry King and Steve Orlofsky)
Our Standards: The Thomson Reuters Trust Principles.
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50b73e5e33e3d90aa3667934f81ce7bb | https://www.reuters.com/article/global-forex/forex-safe-haven-yen-weakens-aussie-outperforms-as-risk-appetite-improves-idINL1N2DF1IU?edition-redirect=in | Safe-haven yen weakens, Aussie outperforms as risk appetite improves | Safe-haven yen weakens, Aussie outperforms as risk appetite improves
By Karen Brettell3 Min Read
NEW YORK (Reuters) - The Japanese yen fell to a seven-week low against the U.S. dollar on Tuesday and higher-risk currencies including the Australian dollar jumped, as risk appetite grew on optimism that the worst of the economic downturn from the spread of the coronavirus is in the past.
Slideshow ( 3 images )
U.S. stocks gained as cheer over business reopenings overcame concerns about U.S.-China tensions and mass protests across the United States over the death of an African-American man in police custody. [.N]
“The good times continue to roll in risk markets,” Mazen Issa, senior FX strategist at TD Securities, said in a report. “As intense as the rally has been, this is likely set to continue as the breadth of the equity rally has now spread outside the U.S.”
The greenback gained 1.06% against the Japanese yen JPY= to 108.72 yen, the highest since April 9.
The dollar index against a basket of major currencies =USD fell 0.15% to 97.73 after going as low as 97.43, the lowest since March 13.
The Australian AUD= dollar jumped 1.27% to $0.6883, after reaching $0.6894, the highest since January 20.
Australia’s central bank held rates at all-time lows on Tuesday and sounded less gloomy as the economy gradually reopens during what is likely to be the worst quarter since the Great Depression of the 1930s.
The euro was supported by expectations that the European Central Bank will deliver more stimulus when it meets on Thursday.
A 1.85-trillion euro ($2.04 trillion) fiscal package proposed by the European Commission to lift the region’s economy eases the pressure to act speedily. Many economists nevertheless expect the 750 billion Pandemic Emergency Purchase Programme (PEPP) to increase by 500 billion euros. ABN Amro thinks it will double in size.
The single currency EUR= rose 0.27% to $1.1164 after earlier reaching $1.1195, the highest since March 16.
Sterling GBP= climbed above $1.25 to its highest in a month against the dollar on Tuesday, as signs that Britain might be willing to compromise on sticking points in a fresh round of Brexit negotiations with the European Union provided support.
Reporting by Karen Brettell; additional reporting by Olga Cotaga in London; editing by Jonathan Oatis and Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.
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e1fbdec3a7577db30eddc5dcee8d074c | https://www.reuters.com/article/global-forex/forex-yen-franc-gain-after-fed-paints-a-gloomy-picture-idUSL4N2DO26U?feedType=RSS&feedName=companyNews&rpc=31 | FOREX-Yen, franc gain after Fed paints a gloomy picture | FOREX-Yen, franc gain after Fed paints a gloomy picture
By Saikat Chatterjee3 Min Read
* Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh
LONDON, June 11 (Reuters) - The Japanese yen and the Swiss franc gained on Thursday as expectations that the global economy will recover swiftly from the coronavirus pandemic took a beating after a U.S. central bank policy meeting.
The Federal Reserve signaled it plans years of extraordinary support for the U.S. economy, which policymakers project will shrink by 6.5% in 2020, that the unemployment rate will be 9.3% at the end of this year, and that interest rates are expected to remain near zero until the end of 2022.
The dire projections took the wind out of a broadening rally in stock markets over the previous two weeks and prompted investors to dump the Australian dollar and other commodity-linked currencies.
Against a basket of its rivals, the dollar weakened 0.1% to 96.04 after edging 0.2% higher in Asian trade as global stock markets weakened.
Versus the Swiss franc, the dollar slipped to a three-month low and it languished near a one-month low versus the yen.
“Our assessment after the FOMC’s statement is that the trend for a weaker dollar that has set in June is likely to continue as the Fed has shown no indication that it will stop this trend,” said Thomas Flury, head of FX strategies at UBS Global Wealth Management.
The dollar had gained previously from episodes of broader market selling, but the U.S. currency was on the back foot on Thursday on concerns of a second wave of coronavirus infections.
New infections in the United States showed a slight increase after five weeks of declines, according to a Reuters analysis, only part of which was attributed to more testing.
“The risk of a second wave outweighed the Fed’s ‘zero forever’ message and the FX market took a distinctly risk-off mood, with a typical reaction,” said Marshall Gittler, Head of Investment Research at BDSwiss Group.
High-beta currencies heavily geared towards global growth, such as the Australian dollar and the Norwegian crown, led losers in the currency space, falling 1% in early London trading.
The euro rose 0.1%, leaving open the possibility of more downside for the dollar once the dust settles. The single currency last bought $1.1385.
Reporting by Saikat Chatterjee; Editing by Timothy Heritage and Jane MerrimanOur Standards: The Thomson Reuters Trust Principles.
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ae546a166e4d5f21b9130d65030a9657 | https://www.reuters.com/article/global-gold-idINKBN13G0B0?edition-redirect=in | Gold slips as equities, dollar rise | Gold slips as equities, dollar rise
By Zandi Shabalala3 Min Read
LONDON (Reuters) - Gold edged lower on Tuesday after U.S. equities hit all-time highs on market expectations for higher growth and more spending from a Donald Trump presidency.
Gold bangles are on display as a woman makes choices at a jewellery showroom during Dhanteras, a Hindu festival associated with Lakshmi, the goddess of wealth, in Kolkata, India October 28, 2016. REUTERS/Rupak De Chowdhuri
Trump’s victory in the Nov. 8 U.S. election initially saw a flight to safe-haven assets such as gold but the trend reversed as the dollar and bond yields surged on expectations of higher U.S. spending and interest rates.
Spot gold was down 0.3 percent at $1,210.37 an ounce by 1517 GMT. The previous day, bullion advanced 0.4 percent to snap three sessions of losses.
U.S. gold futures were flat at $1,210.64 per ounce, after rising as high as $1,220.90.
Safe haven assets such as gold and the Japanese yen are usually the casualties of a flight to risk where the dollar and stocks perform well.
“We are still in the Donald Trump honeymoon period which has taken the equity market quite a bit higher. The market is looking for global growth to come to the rescue,” said Saxo Bank head of commodity strategy Ole Hansen.
“The market is resetting its expectations and that is having a negative impact on precious metals.”
Stocks have rallied since the election as Trump has promised tax cuts, higher spending on infrastructure and simpler regulations in the banking and healthcare industries. [.N]
Gold has fallen more than $100 an ounce from its post-election peak on Nov. 9 as U.S. Treasury yields posted their biggest two-week rise in more than five years and the dollar shot higher.
The dollar index, which measures the greenback against a basket of main currencies, inched closer to recent a 13-1/2-year high after snapping a 10-day rising streak on Monday. [USD/]
Adding further pressure on gold was the expected rise in U.S. interest rates in December, traders and analysts said.
Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings fell 0.71 percent to 908.77 tonnes on Monday. Holdings have fallen 3.6 percent so far this month. [GOL/ETF]
Silver rose 1.2 percent to $16.79 an ounce and platinum was 0.8 percent higher at $942.50.
Palladium was up 0.7 percent at $733.48, after touching its strongest since Aug. 10 at $742.20.
Additional reporting by Apeksha Nair in Bengaluru; Editing by David Evans and Adrian CroftOur Standards: The Thomson Reuters Trust Principles.
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3f6d938e441c5ab7cca995c53fcae6ff | https://www.reuters.com/article/global-grain/adm-says-to-focus-on-organic-growth-after-acquisitions-idUSL8N27T47G?feedType=RSS&feedName=companyNews | ADM says to focus on organic growth after acquisitions | ADM says to focus on organic growth after acquisitions
By Reuters Staff1 Min Read
GENEVA, Nov 13 (Reuters) - Grain trader Archer Daniels Midland Co ADM does not expect to continue its aggressive strategy of acquisitions in the next few years and will instead focus on organic growth, a senior official said on Wednesday.
“With this level of acquisitions we have had, I don’t think you will see ADM being a very aggressive M&A investor over the next few years,” Ismael Roig, Europe, Middle East and Africa President Archer Daniels Midland Co told the Global Grain conference in Geneva.
Reporting by Sybille de la Hamaide and Emma Farge, editing by Louise HavensOur Standards: The Thomson Reuters Trust Principles.
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5d950d0df8943392d294bdff65d16df2 | https://www.reuters.com/article/global-lng-tellurian/tellurian-aims-for-louisiana-lng-construction-start-this-summer-idINL1N2JQ01K | Tellurian aims for Louisiana LNG construction start this summer | Tellurian aims for Louisiana LNG construction start this summer
By Scott DiSavino2 Min Read
FILE PHOTO: The logo of Tellurian Inc is seen in its booth at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan April 4, 2017. REUTERS/Toru Hanai
(Reuters) - The co-founder of U.S. LNG developer Tellurian said Thursday that the company is targeting this summer to begin construction of its $16.8 billion Driftwood LNG export project in Louisiana as demand for the super-cooled fuel surges worldwide.
“I hope that we will be in construction this summer,” said Charif Souki, co-founder and executive chairman of Tellurian. “There is a strong need for additional liquefaction capacity and we’re probably the project that is the closest to starting construction.”
Demand for liquefied natural gas has soared in recent years as countries like China and India shift power generation away from dirtier coal-fired plants. In recent weeks, both prices for the fuel and shipping fees have soared due to cold weather in Asia and bottlenecked shipments at the Panama Canal.
“The level of (customer) interest has increased pretty dramatically over the past month,” Souki said.
Over the past two years, numerous projects slated for groundbreaking in North America, including Driftwood, were delayed because customers were unwilling to sign long-term deals needed to finance the projects as natural gas prices slumped.
Coronavirus demand destruction caused gas prices in Europe and Asia to plunge to record lows below $2 per million British thermal units (mmBtu), while U.S. gas prices fell to their lowest in 24 years last year.
“The system is stressed,” Souki said, adding that global LNG demand is on track to increase by around 200 million tonnes over the next seven years. In 2020, global LNG demand hit a record high of 360 million tonnes.
The first phase of Driftwood is slated for operation in 2025, and will produce about 16.5 million tonnes per annum of LNG, equivalent to about 2.2 billion cubic feet per day of natural gas. One billion cubic feet of gas is enough to supply about five million homes for a day.
Reporting by Scott DiSavino; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.
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cecb766acb0961f306918f39aa4a0c23 | https://www.reuters.com/article/global-lng/global-lng-global-gas-markets-ease-as-traders-handle-papua-outage-winter-demand-drops-idUKL4N1QR2VL?edition-redirect=uk | GLOBAL LNG-Global gas markets ease as traders handle Papua outage; winter demand drops | GLOBAL LNG-Global gas markets ease as traders handle Papua outage; winter demand drops
By Henning Gloystein4 Min Read
* Papua New Guinea quake triggers LNG force majeure by Exxon
* But warmer weather approaches for North Asia, Europe
* Gas demand to drop as spring breaks out in northern hemisphere
SINGAPORE, March 9 (Reuters) - Global liquefied natural gas (LNG) prices eased this week as the market digested the impact of the earthquake in Papua New Guinea that in late February knocked out ExxonMobil’s export facility just as extreme cold in Europe spiked heating demand there.
The sudden shortages triggered a rush for spot cargoes in the Pacific and Atlantic as utilities scrambled to meet short-term demand, pushing up prices earlier in March.
Exxon’s outage in Papua New Guinea will last for weeks after the company declared force majeure last Friday on its exports and has to assess damage to the remote gas processing facility and over 700 km (435 miles) of pipeline to the LNG export terminal.
A company declares a force majeure when it is unable to fulfil a contract because of forces beyond its control.
While some buyers reportedly bought LNG spot cargoes at around $10 per million British thermal units (mmBtu) in the immediate wake of the Papua outage to meet short-term demand, multiple traders this week said overall LNG market conditions were easing due to the onset of the low demand spring season across the Northern Hemisphere.
Asia spot LNG prices LNG-AS were around $8.50 per mmBtu on Friday, down from $8.80 the previous week.
Weather data in Thomson Reuters Eikon shows temperatures in Tokyo, Beijing and Seoul - three core demand centres for LNG in North Asia - to rise to around double their seasonal norms within the next two weeks, implying a sharp drop-off in gas demand for heating.
In Europe, where a spat of extreme cold caused prices to spike to records last week, temperatures have also returned to seasonal norms and are expected to rise further in the coming weeks as winter ends.
Although LNG markets are expected to ease during the upcoming low demand spring in the Northern Hemisphere, Katie Bays, an energy analyst at U.S. Height Securities, said in a note that markets were overall getting tighter, due to structural demand increases, especially in China, where a government gasification programme is moving millions of households and factories from coal to gas.
“Though prices have come in, they remain around $8.50/mmBtu, supported by outages in Papua New Guinea... and by a sudden cold snap in Northwest Europe, which sent UK gas prices soaring (last week),” Bays said.
China’s natural gas imports surged by more than a quarter last year and it overtook South Korea as the world’s second-biggest importer of LNG. Only Japan buys more, although most analysts expect China to pass Japan in the coming years as well.
Since China has significant domestic gas production, and also has large pipelines feeding it from Central Asia, its utilities only scale up LNG purchases in the spot market when their demand cannot be met otherwise, especially during peak demand in the winter.
“The market will see a very tight winter next year with little new capacity set to come online,” Bays said.
Low demand lulls during spring and tight winters triggering a wave of Chinese buying will likely result in “greater price volatility,” she added.
Reporting by Henning Gloystein in SINGAPORE; Additional reporting by Jessica Jaganathan in SINGAPORE; Editing by Christian SchmollingerOur Standards: The Thomson Reuters Trust Principles.
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4db4c1c4f47d15d983215d67585df19d | https://www.reuters.com/article/global-lng/global-lng-price-rebounds-as-north-asian-buyers-replenish-inventory-idUSL4N1PZ3ET | GLOBAL LNG-Price rebounds as North Asian buyers replenish inventory | GLOBAL LNG-Price rebounds as North Asian buyers replenish inventory
By Jessica Jaganathan3 Min Read
* Interest for prompt spot cargoes still keen
* Angola LNG sells late February cargo at nearly $11 per mmBtu
* Demand could roll over to April - trade
SINGAPORE, Feb 9 (Reuters) - Asian spot liquefied natural gas (LNG) prices rebounded this week as persistently cold weather in North Asia forced buyers to enter the spot market to replenish inventory.
Spot prices for March LSG-AS delivery in Asia climbed 40 cents to $10.60 per million British thermal units (mmBtu) this week, according to several LNG traders in Asia.
Cargoes for delivery in the first half of March are trading between $10.70 and $11 per mmBtu while cargoes for the second half of the month are trading at just above $10 a barrel, they said.
Angola LNG sold a cargo for February at close to $11 per mmBtu to a Chinese company, traders said. The company has offered a March cargo as well.
“People were waiting for prices to come down, so inventory has been drawn down, but due to the cold weather they have no choice but to enter the spot market at these prices,” a Singapore-based LNG trader said.
Japanese utilities, Chinese and South Korean companies are either buying or enquiring for March cargoes, he added.
He expected some of the demand to roll over to April, narrowing the backwardation between March and April. Backwardation is a price structure where prices for cargoes loading in the prompt are higher than those loading later.
China’s imports of LNG in January rose to another record high of 5.14 million tonnes, Thomson Reuters Eikon shiptracking data showed ahead of official customs data due later this month.
The strong appetite is expected to continue this year as China has announced a more ambitious plan of switching heating systems in 4 million households and industrial plants from coal to gas or electricity this year, traders said.
India’s Reliance may have bought a cargo for March delivery into Hazira terminal while Gail India is seeking its second cargo for March.
Supply issues continue to plague the market with lower volumes of spot cargoes expected from Indonesia, traders said.
Gas deliveries from Indonesia’s offshore Mahakam oil and gas block to Bontang LNG plant only met 87 percent of its target as of Jan. 31, the country’s regulator said this week.
While Pertamina, the parent company of the operator of the LNG plant, has said LNG deliveries to its customers will not be disrupted, spot cargoes will likely not be available, traders said.
The plant exports about 1-2 cargoes every two months, one of them said.
Further possible delays to Australia’s giant Ichthys LNG project could also see supply being tight, traders added.
Reporting by Jessica Jaganathan, additional reporting by Oleg Vukmanovic in LONDON; Editing by Sunil NairOur Standards: The Thomson Reuters Trust Principles.
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574de4d86e33b2edf645f0afbefb4c5c | https://www.reuters.com/article/global-markets-idUSL1N2DV1P7 | GLOBAL MARKETS-World stock markets slip on second wave virus fears, safe-havens rise | GLOBAL MARKETS-World stock markets slip on second wave virus fears, safe-havens rise
By Herbert Lash, Tom Arnold5 Min Read
(Adds oil settlement prices)
* Investors fret over infections in U.S, Germany, China
* Dollar, Japanese yen rise in safe-haven bid
* Oil gains on lower U.S. inventory data
* Graphic: World FX rates tmsnrt.rs/2egbfVh
NEW YORK/LONDON, June 18 (Reuters) - Global stock markets fell on Thursday as a continued rise in the number of coronavirus cases dashed hopes of a swift recovery from the pandemic-induced economic slump and drove demand for safe-haven currencies such as the dollar and Japanese yen.
Around 400 workers tested positive for the virus at an slaughterhouse in northern Germany, fueling contagion concerns, yet gold prices eased a bit after a Chinese medical expert said Beijing has brought a recent outbreak under control.
Stocks on Wall Street seesawed either side of breakeven as investors struggled to interpret the impact of economic data without any guidance from corporations on their earnings.
Cleveland Federal Reserve Bank President Loretta Mester said it could take a year or two for the U.S. economy to return to pre-pandemic levels, with the gross domestic product declining by 6% in 2020 and the unemployment rate still around 9% by year’s end.
Justin Onuekwusi, portfolio manager at Legal & General Investment Management, said the flare-ups in Germany and China and rising infection rates in some U.S. states were cause for concern.
“It’s going to be a theme where we see economies having to do mini-lockdowns and isolation measures in order to contain the virus. The question is how much it affects markets,” he said.
U.S. data suggested a declining pace of Americans filing for unemployment benefits has stalled, reminding investors the economy faces a long and difficult recovery from the COVID-19 recession. At least 29 million Americans are collecting unemployment checks, a sign of the tough road ahead.
“The restarting of the economy is going to be slow, it’s going to be uneven and initial jobless claims today reflect that,” said Kristina Hooper, chief global market strategist at Invesco.
Rising coronavirus infection rates raises the question of what happens if that continues, Hooper said, noting that many states will not reimpose lockdowns because they want to allow economic activity to continue.
“You could have a situation where infections continue to rise, but it doesn’t necessarily have the impact on economic activity that it did in March and April,” Hooper said.
MSCI’s gauge of stocks across the globe shed 0.41%, while the pan-European STOXX 600 index closed down 0.71%, hurt by a plunge in Wirecard shares over missing cash balances.
Emerging market stocks lost 0.12%, while Wall Street was lower after Nasdaq gave up earlier modest gains.
The Dow Jones Industrial Average fell 171.95 points, or 0.66%, to 25,947.66, the S&P 500 lost 13.33 points, or 0.43%, to 3,100.16 and the Nasdaq Composite dropped 17.14 points, or 0.17%, to 9,893.40.
CHINESE BRIGHT SPOT
China’s blue-chip CSI300 shares were a bright spot, adding 0.7%, helped by reassurances from its central bank governor that the world’s second-largest economy would maintain ample financial liquidity in the second half of 2020 as the economy recovers.
Euro zone bonds hardly budged, even as the European Central Bank announced record demand for its new round of cheap loans, with the strong take-up expected to support the bond market.
Italian yields slipped slightly, with 10-year yields falling to a new low since late March, of 1.33%. They were last down 3.5 basis points at 1.34%.
British government bond yields touched their highest level since June 10 after the Bank of England increased its bond-buying program by another 100 billion pounds ($125 billion) to help revive the economy, but sharply slowed the pace of its purchases.
In currency markets, the yen touched a six-day high of 106.70 in Asian trading and was last neutral at 107.
The Norwegian crown was the biggest mover among major currencies, after Norway’s central bank said the country’s economic prospects had improved more than expected in recent weeks and its key policy interest rate would be kept unchanged.
The crown was up 0.6% versus the dollar at 9.4560.
The dollar index rose 0.37%, with the euro down 0.34% to $1.1205. The yen strengthened 0.16% versus the greenback at 106.84 per dollar.
U.S. Treasury yields fell and crude oil rose as worries about fuel demand following the rising coronavirus cases were offset by U.S. government data showing lower inventories of gasoline and distillates, indicating higher demand.
Benchmark 10-year U.S. Treasury notes fell 4.1 basis points to yield 0.692%.
U.S. crude settled up 88 cents at $38.84 a barrel, while Brent rose 80 cents to settle at $41.51.
In commodity markets, spot gold dropped 0.2% to $1,723.60 an ounce.
Reporting by Herbert Lash; Editing by Dan Grebler and Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.
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692fba67b535ccebba2563c97a4b4005 | https://www.reuters.com/article/global-markets-idUSL5N1EF21A | GLOBAL MARKETS-Dollar climbs as attacks subdue euro, BOJ saps yen | GLOBAL MARKETS-Dollar climbs as attacks subdue euro, BOJ saps yen
By 5 Min Read
* Dollar climbs after Yellen’s upbeat labour market comments
* European shares steady after attacks in Germany, Turkey
* Gold down as Fed comments offset attacks’ impact
* Yen slides as BOJ says to maintain loose policy
* Graphic: World FX rates in 2016 tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, Dec 20 (Reuters) - The dollar climbed back towards a 14-year high on Tuesday as the yen fell after the Bank of Japan held policy steady and fallout from attacks in Germany and Turkey subdued the euro.
European shares were steady, with unease over the attacks balanced by gains by bank shares and the Milan market after Italy’s government said it wanted approval for up to 20 billion euros to rescue troubled lenders.
On currency markets, risk aversion sent the safe-haven Swiss franc to a near a six-month high versus the euro and pushed the common currency firmly back below $1.04.
But the dollar and rising bond yields again dominated, after the head of the Federal Reserve flagged the strength of the U.S. jobs market in a speech to students on Monday.
That sent the greenback bouncing towards last week’s 14-year high and it was at 103.40 on the index that measures it against other leading currencies, just short of its recent peak of 103.56.
The gains were strongest against the yen which slid around 1 percent after the Bank of Japan, shrugging off the yen’s recent slump, said it would keep monetary policy loose.
“The biggest impact you see from the attacks in Berlin and Istanbul is the Swiss franc/euro,” said Societe Generale FX strategist Alvin Tan.
“But apart from that the dollar continues to be strong after we had some rather positive comments from Janet Yellen,”
Benchmark 10-year U.S government bond yields, which set the bar for global borrowing costs and have been rising hand-in-hand with the dollar over the last few months, were back above 2.58 percent.
The greenback has risen 12 percent versus the yen since Donald Trump’s surprise presidential election victory, on his promises of increased fiscal stimulus. The win was made official on Monday after he got the required Electoral College votes.
FUNDAMENTALS
Modest gains for European shares came after MSCI’s broadest index of Asia-Pacific shares outside Japan had ended down 0.2 percent as emerging markets stocks suffered their fifth straight day of losses.
China’s CSI 300 index slid 0.6 percent, on Beijing’s move to tighten supervision of shadow banking activities and on liquidity concerns, while Japan’s Nikkei closed up 0.5 percent after the BOJ meeting.
“There was no particular surprise from the policy meeting, but investors are happy that the economy’s fundamentals are finally rising after the BOJ expressed an upbeat view,” said Takuya Takahashi, a strategist at Daiwa Securities.
Wall Street was expected to nudge higher later having tailed off slightly on Monday as risk aversion set in following the deaths in Germany, the shooting dead of Russia’s ambassador in Turkey, and a gun attack in a mosque in Switzerland.
Berlin police said on Tuesday that investigators suspected a truck that was driven into a Christmas market crowd was a terrorist attack.
The lira rallied on relief that Moscow and Ankara struck a unified tone after the Ankara attack, rising 0.3 percent to 3.5196 per dollar on Tuesday after falling 0.7 percent on Monday. The rouble was steady at 61.8926 per dollar.
Safe haven gold, which rose 0.4 percent on Monday, pulled back 0.3 percent to $1,135.06 an ounce, as the prospect of further U.S. rate hikes outweighed political concerns.
Oil prices also eased as traders began to unwind positions in the run-up to the holiday season. U.S. crude slid 0.4 percent to $51.91 per barrel as global benchmark Brent slipped 0.2 percent to $54.81.
For Reuters new Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets (Additional reporting by Nichola Saminather in Singapore; editing by John Stonestreet)
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44089845cc9d87813af29df45ee948fd | https://www.reuters.com/article/global-markets-idUSL8N1II2HP | GLOBAL MARKETS-Euro zone investors welcome unity, Trump turmoil knocks dollar | GLOBAL MARKETS-Euro zone investors welcome unity, Trump turmoil knocks dollar
By 5 Min Read
* Euro hits six-month high
* German stocks touch fresh record high
* Merkel and Macron draw European roadmap
* Dollar hit by Trump’s disclosure, economy fears
By John Geddie
LONDON, May 16 (Reuters) - The euro hit a six-month peak and German stocks touched a record high on Tuesday as signals on further European integration contrasted with political turmoil and fresh doubts about the economy in the United States.
The euro’s rally was reinforced by dollar losses prompted by allegations that U.S. President Donald Trump disclosed highly classified information to Russia’s foreign minister about a planned Islamic State operation.
That conspired with doubts over Trump’s economic policy and a run of weak data to dampen expectations of a rate hike from the world’s biggest economy next month.
Euro zone markets were meanwhile buoyed by talks between the bloc’s main powers, Germany and France, which may open the door to changing treaties to facilitate ambitious reform. A robust first quarter growth report for the bloc gave a further boost.
Monday’s talks between new French President Emmanuel Macron and German Chancellor Angela Merkel sought to reinvigorate a Europe shaken by Britain’s planned exit, and spread hope that the populist upsurge epitomized by Macron’s rival in the French election, Marine Le Pen, could be held at bay.
“Macron and Merkel seemed more aligned than I expected, with Merkel even saying she wouldn’t exclude treaty changes, which the market welcomed,” Florian Hense, a senior economist at Berenberg, said.
“The axis between Germany and France is even more crucial over the next couple of years because if the two don’t sit together and reform the euro zone, we are probably going to have Le Pen in five years’ time again.”
The euro was comfortably the best performing G10 currency on Tuesday, up around 0.6 percent against a broadly weaker U.S. dollar.
The dollar index -- which measures the greenback against six other major currencies -- was down around 0.4 percent on the day.
Analysts said the controversy around Trump has raised fears that he might not last a whole term and that, even if he did, there were too many distractions for him to be able to successfully push through his economic stimulus programme.
“(The story about Trump and Russia) probably is playing out as a weaker dollar on the view that Trump may not be around long enough to deliver his tax reform, which is at least partially priced into the dollar,” said RBC Capital Markets currency strategist Adam Cole, in London.
A weak manufacturing report also trimmed expectations of a Federal Reserve rate increase next month.
The New York Federal Reserve’s barometer on business activity in the state unexpectedly fell in May, sinking into negative territory for the first time since October.
Expectations of a rate increase in June fell to 74 percent compared to 84 percent last week, according to the CME Fedwatch.
OIL RISE
On stock markets, Germany’s bourse nudged up slightly to better an all-time peak breached on Monday while Britain’s commodity-heavy index was the main beneficiary of a steep rise in oil.
A broad index of Asian stocks also earlier nudged to a fresh two-year high on Tuesday.
Oil moved back towards a three-week high breached on Monday, after top producers Saudi Arabia, Russia and Kuwait supported prolonging supply cuts until the end of March 2018 in a bid to drain a global glut.
Brent crude oil was up 30 cents at $52.12 a barrel by 0750 GMT. U.S. light crude CLc1 was 25 cents higher at $49.10 a barrel.
Brent crude has gained nearly 9 percent over the last week though some analysts were sceptical about the durability of the rally despite the proposed supply curbs.
“That is going to be easier said than done, it appears, with U.S. production running at its fastest pace since August 2015 and data yesterday confirming that Chinese growth momentum continues to moderate,” ANZ strategists wrote in a daily note.
A risk-on undertone meant meagre gains for gold, with the precious metal changing hands at $1,233 per ounce.
For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets (Additional reporting by Jemima Kelly and Helen Reid in London and Saikat Chatterjee in Hong Kong; Editing by Catherine Evans)
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a4a59faf51e9fd8319f340f15e1c0e25 | https://www.reuters.com/article/global-markets/asia-shares-cautious-as-mood-turns-skittish-idINKBN1DG02V?edition-redirect=in | Asia shares gain despite Wall Street weakness, dollar edges higher | Asia shares gain despite Wall Street weakness, dollar edges higher
By Lisa Twaronite, Wayne Cole4 Min Read
TOKYO/SYDNEY (Reuters) - Asian shares shrugged off Wall Street losses and a lacklustre start to rally on Thursday, while the dollar edged up as investors priced in more U.S. rate hikes after upbeat economic data.
FILE PHOTO: (L-R) The Hong Kong Exchanges flag, Chinese national flag and Hong Kong flag are hoisted outside the Hong Kong Stocks Exchange in Hong Kong June 7, 2016. REUTERS/Bobby Yip/File Photo
“European equity traders will likely inherit a positive market,” Ipek Ozkardeskaya, analyst at London Capital Group, said in a note.
Futures portended solid openings for European bourses, with European stock futures up 0.3 percent, Dax futures up 0.4 percent, and FTSE futures and CAC futures each up 0.3 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.7 percent.
Australian stocks added 0.2 percent, with sentiment helped by data showing the country’s jobless rate dipped to 5.4 percent in October, its lowest since early 2013.
Japan’s Nikkei reversed early losses and surged 1.5 percent as investors hunted for bargains after a six-day losing streak.
EMini futures for the S&P 500 added 0.3 percent after major indexes dropped on Wall Street overnight, with the S&P 500 energy sector suffering a four-day decline of 4 percent, its weakest such period in 14 months.
Investor concern over the progress of a massive U.S. tax reform plan showed no sign of abating as two Republican lawmakers on Wednesday criticised the Senate’s latest proposal.
“If we look at what the markets are focusing on, it’s still very much the tax cut debates in the U.S., and how much progress there’s going to be on this front,” said Mitul Kotecha, head of Asia macro strategy for Barclays in Singapore.
“Clearly, there’s some way to go before any deal is on the table, and I think markets perhaps may have reassessed some bullish expectations, and hence some of the dollar weakness yesterday, and probably the fact that the dollar has been unable to make up much lost ground today,” Kotecha said.
The dollar index, which tracks the greenback against a basket of six major rivals, was slightly higher on the day at 93.828. The euro was steady at $1.1791, retreating from a one-month top of $1.1860 on Wednesday.
Against its Japanese counterpart, the dollar gained 0.2 percent to 113.04 yen after it sunk as deep as 112.47 overnight. But it remained well shy of its eight-month high of 114.735 hit last week as Japanese stocks pushed to multi-decade highs.
Doubts that the latest round of talks to overhaul the North American Free Trade Agreement would make much headway in the face of tough U.S. demands saw Mexico’s peso sink to an eight-month low on Wednesday, though it steadied in Asian trade.
Mostly upbeat economic news added to expectations that the Federal Reserve would not only hike in December, which is now almost fully priced in, but multiple times next year as well.
Core U.S. inflation edged higher and retail sales beat forecasts in a positive sign for growth.
The rate outlook could push the two-year Treasury yields up further from its nine-year peaks, after the yield curve hit its flattest in a decade.
Investors also suspect this tightening will slow the U.S. economy and stop inflation ever getting to the Fed’s 2 percent target, pulling down longer-term yields. As a result the gap between two- and 10-year yield has shrunk to its thinnest premium since late 2007.
“Whether it is the flattest yield curve in a decade, and what that has historically signalled for future growth, the recent troubles in high-yielding credit or lingering geopolitical tensions, it is not entirely clear what has markets spooked,” ANZ analysts wrote in a note.
In commodity markets, gold edged down 0.1 percent to $1,277.29 an ounce. It reached $1,289.09 overnight, its highest since Oct. 20.
Oil prices gained despite pressure after the U.S. government reported an unexpected increase in crude and gasoline stockpiles. They had lost ground to this week’s International Energy Agency (IEA) outlook for slower growth in global crude demand.
U.S. crude added 5 cents to $55.38 a barrel. Brent crude futures were 15 cents higher at $62.02.
Reporting by Lisa Twaronite in Tokyo and Wayne Cole in Sydney; Editing by Richard Borsuk & Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.
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9464943ba78a1b0f7a802514002eed8e | https://www.reuters.com/article/global-markets/global-markets-asian-markets-look-to-rise-on-vaccine-stimulus-hopes-idUSL1N2IO32U | GLOBAL MARKETS-Asian markets look to rise on vaccine, stimulus hopes | GLOBAL MARKETS-Asian markets look to rise on vaccine, stimulus hopes
By Pete Schroeder3 Min Read
Dec 9 (Reuters) - Asian markets were set to rise Wednesday as investors tracked positive news on COVID-19 vaccines and ongoing efforts to launch more fiscal stimulus.
Australian S&P/ASX 200 futures were up 0.57% in early trading, while Japan’s Nikkei 225 were down 0.02%.
Hong Kong’s Hang Seng index futures were up 0.42%.
On Wall Street, stocks notched new record levels Tuesday at the S&P and Nasdaq, boosted by gains in the healthcare sector on the back of positive vaccine news and seeming progress on U.S. stimulus talks, as the U.S. dollar dipped.
The Dow Jones Industrial Average rose 0.35%, the S&P 500 gained 0.28% and the Nasdaq Composite added 0.5%.
MSCI’s gauge of stocks across the globe gained 0.21%. The dollar index was up 0.08%.
“USD consolidated amid a lift in U.S. equities to record highs and positive signs that an agreement on an one-week stopgap funding bill that would push off a partial government shutdown,” wrote Joseph Capurso, a strategist with Commonwealth Bank of Australia.
“There appears to be some bipartisan support for a fiscal package of US$908 bln (4% of GDP).”
U.S. policymakers continued to negotiate over additional stimulus to help offset the economic impact of the pandemic while pursuing a stopgap government funding bill. Leaders in both parties remain adamant a deal must be struck but are still working through sticking points, including aid to state and local governments and business liability protections.
The steady march of positive news on COVID-19 vaccines helped lift investor spirits.
Britain on Tuesday became the first Western nation to begin a wide vaccination campaign, and Johnson & Johnson reported it could obtain late-stage trial results for a single-dose vaccine in January, earlier than expected. Meanwhile, Pfizer Inc cleared another hurdle when the U.S. health regulator released documents flagging no new safety or efficacy concerns.
But the looming prospect of a “no deal” Brexit weighed on investors, as British and European Union negotiators are still trying to break a deadlock in trade deal talks within three weeks.
In the foreign exchange market, sterling was trading down 0.2%.
The benchmark 10-year yield was down 1.3 basis points in afternoon trading at 0.9146%.
Oil prices were near unchanged, with Brent crude futures settling at $48.84 a barrel, up 5 cents. U.S. West Texas Intermediate crude futures settled 16 cents lower at $45.60. Spot gold prices were higher.
Reporting by Pete Schroeder; Editing by Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.
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1d9f57faaca1ce2b093c28c214cfa138 | https://www.reuters.com/article/global-markets/global-markets-asian-shares-pressured-as-wall-st-ends-off-highs-focus-on-xi-speech-idUSL3N1RN06Z | GLOBAL MARKETS-Asian shares pressured as Wall St ends off highs, focus on Xi speech | GLOBAL MARKETS-Asian shares pressured as Wall St ends off highs, focus on Xi speech
By Masayuki Kitano4 Min Read
SINGAPORE, April 10 (Reuters) - Asian shares edged lower on Tuesday as Wall Street retreated from its highs after the FBI raided the offices of U.S. President Donald Trump’s long time lawyer, dampening risk appetite already under strain from an escalating U.S.-China trade spat.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2 percent. South Korea’s KOSPI fell 0.8 percent, while Japan’s Nikkei shed 0.4 percent.
The sharp pull-back on Wall Street late in Monday’s trading seems to be dampening market sentiment, said Hirofumi Suzuki, an economist for Sumitomo Mitsui Banking Corporation in Singapore.
“U.S. equities rapidly lost momentum and so sentiment wasn’t that positive in the end,” Suzuki said.
News that the Federal Bureau of Investigation had raided the offices and home of Trump’s personal lawyer Michael Cohen on Monday had put a dampener on equities, which had rallied on signs of cooling in the China-U.S. trade spat.
Cohen has been at the centre of a controversy surrounding payment to a porn star who has alleged that she had sex once in 2006 with Trump and was paid money shortly before the 2016 election to keep quiet about it.
On Wall Street on Monday, the S&P 500 stock index gave up intraday gains as much as 1.9 percent to end up 0.3 percent.
Markets are keenly awaiting a speech by Chinese President Xi Jinping at the Boao Forum on Tuesday, which could elicit Xi’s first reaction on the tariff standoff with the United States.
Financial markets have been buffeted over the past week or so amid the tit-for-tat tariff threats between the world’s two biggest economies.
On Monday, China stepped up its attacks Washington over billions of dollars worth of threatened tariffs, but Trump again voiced optimism the two sides would hammer out a trade deal.
Global equities managed to rally overnight on hopes the two sides will cool tensions and avert a full-scale trade row, with oil prices up more than 2 percent overnight for their biggest daily percentage gain since March 21.
Brent crude futures rose $1.54 to settle at $68.65 a barrel.
Russian stock indexes and the rouble both fell sharply on Monday after the United States hit Russian companies and officials with new financial sanctions to punish Moscow for a range of activities, including alleged meddling in the 2016 U.S. election.
The dollar-denominated RTS stock market index slid 11.4 percent, its largest single-day drop since December 2014, while the rouble slid more than 4 percent against the dollar, the biggest loss since January 2015.
DOLLAR ON DEFENSIVE
The U.S. dollar nursed its losses after slipping against a basket of six major currencies on Monday, hampered by persistent worries about the U.S.-China trade conflict.
The dollar index held steady at 89.805, after shedding 0.3 percent on Monday.
The euro inched up 0.1 percent to $1.2327, clinging to the gains made on Monday when it rose 0.3 percent as comments from European Central Bank President Mario Draghi were seen as supportive for the common currency.
A slide in stock markets this year has not materially impacted euro zone financial conditions, Draghi said on Monday, suggesting that policymakers remain calm about the recent market volatility.
Reporting by Masayuki Kitano in Singapore Editing by Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.
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cdb1e3a4990832229709a62722e5e7b6 | https://www.reuters.com/article/global-markets/global-markets-asian-stocks-approach-2-year-high-on-fresh-u-s-china-trade-hopes-idUSL4N2FR16A | GLOBAL MARKETS-Asian stocks approach 2-year high on fresh U.S.-China trade hopes | GLOBAL MARKETS-Asian stocks approach 2-year high on fresh U.S.-China trade hopes
By Scott Murdoch, Tom Westbrook4 Min Read
* MSCI AxJ gains 0.15%, close to 2-year peak
* Nikkei +1%, ASX 200 +0.4%
* U.S. and China see progress on trade talks
* Asian stock markets: tmsnrt.rs/2zpUAr4
SINGAPORE/HONG KONG, Aug 25 (Reuters) - Renewed confidence in a Sino-U.S. trade deal after talks between the countries helped lift most Asian stocks on Tuesday, as did fresh vaccine hopes for a coronavirus vaccine, which boosted broader sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.18% and was trading just below a two-year high.
Japan’s Nikkei rose 1.5% while banking stocks led Australia’s S&P/ASX 200 up 0.4%.
The upbeat sentiment in Asia on Tuesday follows reports that top U.S. and Chinese officials see progress in resolving concerns around the Phase 1 trade deal reached between the two countries in January.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He, the U.S. Treasury said in a statement on Tuesday, during a “regularly scheduled call”.
China’s commerce ministry said in a statement there had been “constructive dialogue”, which followed the U.S. Treasury declaring that “both sides see progress”.
“This is consistent with market expectations of the Phase 1 deal staying healthy and likely to hold even as U.S.-China tensions flare up along non-trade dimensions - technology, access to capital, geopolitics,” Citigroup analysts said in a research note.
Bucking the regional rally, however, were Hong Kong and China markets, with the Hang Seng slipping 0.7% in the afternoon session while the Shanghai Composite gave up earlier gains to fall 0.19%.
Ord Minnett investment advisor John Milroy said equities market sentiment remained driven by elevated global liquidity levels.
“The strong rebound in markets continues to be driven by the large amounts of money governments and central banks keep throwing at the system,” Milroy said.
“There is no reason to expect markets to stop anytime soon even in the face of reduced global activity levels. Investors keep looking ahead with markets trading well above historical price to earnings levels.”
Markets have also been supported by broader optimism about medical solutions to end the coronavirus pandemic. U.S. regulators on Sunday authorised the use of blood plasma from recovered COVID-19 patients as a treatment option, helping the S&P 500 1% higher to another record close overnight.
Shares of AstraZeneca also rose on a Financial Times report that the U.S. government was considering fast-tracking its experimental vaccine.
That seemed to overshadow a rise in coronavirus cases in Europe and the first documented case of human re-infection with COVID-19, where a man in Hong Kong caught the virus again some four months after first being infected.
In currency markets, the dollar, which has been sensitive to sentiment in equity markets edged higher, defying pressure from a gain in stocks that often leads investors to sell dollars for riskier currencies.
Investors now await a Thursday speech from Federal Reserve chairman Jerome Powell and expect he might address the future approach to inflation and allow it to run hotter than 2% to make up for years of undershooting.
The dollar also found support from an overnight rise in yields. That kept the euro to $1.18 and the Aussie at $0.7172 in Asian trade.
In commodity markets, oil clung to overnight gains after storms disrupted U.S. production. Brent crude futures firmed in early Asian trade to $45.26 a barrel and U.S. crude dipped to $42.58 a barrel.
The stronger dollar held gold to $1,935.9 an ounce. A light data calendar in Asia has investors looking to Germany’s IFO business survey due at 0800 and U.S. consumer confidence data at 1400 GMT. (Reporting by Tom Westbrook and Scott Murdoch; Editing by Sam Holmes)
Our Standards: The Thomson Reuters Trust Principles.
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346dc35046253f295650ad757ca506ba | https://www.reuters.com/article/global-markets/global-markets-bears-prowl-world-markets-maul-chinese-stocks-as-trade-tensions-simmer-idUSL4N1TT2OQ | GLOBAL MARKETS-Bears prowl world markets, maul Chinese stocks as trade tensions simmer | GLOBAL MARKETS-Bears prowl world markets, maul Chinese stocks as trade tensions simmer
By 5 Min Read
* China yuan skids to fresh 6-month low, stocks follow
* Oil sharply higher as US pressures allies on Iran crude
* Asian markets hesitant amid trade uncertainty
* Yen firmer as trade-sensitive currencies ease (updates throughout, changes byline, dateline)
By Sujata Rao
LONDON, June 27 (Reuters) - A 2 percent slide in Chinese equities on Wednesday and a fresh weakening in the yuan highlighted mounting stress on the world’s number two economy from trade tensions with the United States, while global stocks slipped to approach two-month lows.
While the prospect of trade protectionism and tit-for-tat tariffs are raising serious fears for the world economy, the growth and inflation outlook is being further complicated by oil prices rising back above $75 per barrel, due to Washington pressuring its allies to halt Iranian imports.
Oil’s rise, despite last week’s deal by crude producers to raise output, helped Wall Street rebound on Tuesday, while technology stocks also jumped as President Donald Trump said he endorsed a measured approach to restricting Chinese investment in U.S. tech companies.
But that rally has fizzled. Equity futures indicate Wall Street will open weaker and MSCI’s ex-Japan Asian equity index fell 0.8 percent to a fresh two-year low. Losses were led by China, where Shenzen-listed blue chips sank 2.2 percent to stand a whisker above 13-month lows.
Chinese equities have now fallen into so-called bear market territory, having tumbled 20 percent from recent peaks.
The yuan slipped to a fresh six-month low against the dollar , as the central bank allowed the biggest one-day weakening in the currency in percentage terms since January 2017. Many analysts now see authorities allowing currency weakness in order to counter the hit to trade.
“After a lot of sabre-rattling, we are seeing Shanghai suffering a lot more than Wall Street, so clearly the first round (of trade war) has been won by America. Unfortunately, that then overflows into emerging markets and Europe, so it’s not a pretty time for investors,” said Peter Lowman, chief investment officer at UK wealth manager Investment Quorum.
Lowman said a ten-year equity bullmarket had left many assets “priced for perfection”, meaning setbacks could have an outsize impact, especially because central banks, led by the U.S. Federal Reserve, are tightening policy after years of ultra-low interest rates.
“Oil trading near $80 is going to put pressure on inflation around the world which means central bank policy may have to tighten quicker than expected,” Lowman added.
The Iran supply worries have overshadowed a supply increase agreed by OPEC and other oil producers last week, pushing Brent futures over $76 a barrel
European shares, meanwhile, fell 0.5 percent to the lowest since April 12. A near-one percent fall in auto shares , among the most vulnerable to U.S. tariffs, took German equities 0.5 percent down to nearly three-month lows.
Many investors still caution against reading too much into the fallout from the trade tensions, citing robust global growth and hopes of an ultimately pragmatic approach by leaders on the trade issue.
“We still have fundamental macro drivers. It’s very much a push-pull between fundamentals mattering more versus political factors,” Kristina Hooper, global chief market strategist at Invesco, said.
Nevertheless, trade-sensitive assets including currencies continue to feel the heat -- the Australian dollar weakened towards one-year lows hit recently and the New Zealand dollar touched seven month lows to the U.S. dollar.
The greenback itself firmed modestly against a basket of currencies, recovering from 10-day lows, but it fell 0.3 percent against Japan’s yen which is considered a safe-haven asset.
Safe-haven bonds also gained from the turmoil, with 10-year Treasury yields slipping 3.5 basis points to around 2.84 percent, a near-one month low.
Political concerns in Europe are also worrying investors at the margin as a row over migration policy in Germany’s coalition government rumbled on, raising concerns that the euro zone’s biggest economy could be headed for snap elections.
That also contributed to pushing German yields lower , also edging towards one-month lows. (Reporting by Sujata Rao; additional reporting by Helen Reid in London and Wayne Cole in Sydney; Editing by Toby Chopra)
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f36f778ae70e7315485e0dd32165298d | https://www.reuters.com/article/global-markets/global-markets-dollar-slips-as-fed-leads-world-with-emergency-rate-cuts-idUSL4N2B80HK | GLOBAL MARKETS-Dollar slips as Fed leads world with emergency rate cuts | GLOBAL MARKETS-Dollar slips as Fed leads world with emergency rate cuts
By Wayne Cole3 Min Read
* Asian stock markets : tmsnrt.rs/2zpUAr4
* Fed cuts rates to 0-0.25%, major central banks ease
* Central banks offer cheap U.S. dollar funding
* Dollar slips as Fed cuts the most
SYDNEY, March 16 (Reuters) - Markets were set for another chaotic session on Monday after many of the world’s major central banks joined in an emergency round of policy easing aimed at cushioning the impact of the coronavirus on economies.
The U.S. Federal Reserve cut rates to a target range of 0% to 0.25% and said it would expand its balance sheet by at least $700 billion in coming weeks.
Five other central banks also cut pricing on their swap lines to make it easier to provide dollars to their financial institutions facing stress in credit markets.
The Fed, the Bank of Canada, European Central Bank, Bank of England, Bank of Japan and Swiss National Bank set up swap lines in the financial crisis. They also agreed to offer three-month credit in U.S. dollars on a regular basis and at a rate cheaper than usual.
The move was designed to bring down the price banks and companies pay to access U.S. dollars, which has surged in recent weeks as a coronavirus pandemic spooked investors.
U.S. President Donald Trump called the move “terrific” and “very good news.”
The Reserve Bank of New Zealand (RBNZ) joined in with a cut of 75 basis points to its rates, and speculation was rife the Reserve Bank of Australia (RBA) would also ease.
“Central banks around the world continue to react with emergency interest rate cuts to assist with the shock to demand arising from the spread of the COVID-19 virus, with necessary public health containment efforts coming at a substantial economic cost,” NAB chief economist Alan Oster.
“Central banks are also appropriately providing additional liquidity to financial systems.”
Most market had yet to open in Asia, but currencies were active with the U.S. dollar falling given that the Fed had cut by more than its peers.
The dollar dropped 1.1% on the Japanese yen to 116.71 , while the euro climbed 0.8% to $1.1186.
Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.
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5c39d620ce28fc0d174ca287b131c295 | https://www.reuters.com/article/global-markets/global-markets-eu-recovery-fund-lifts-shares-to-five-month-high-idUSL5N2ES4Q8 | GLOBAL MARKETS-EU recovery fund lifts shares to five-month high | GLOBAL MARKETS-EU recovery fund lifts shares to five-month high
By Marc Jones5 Min Read
* MSCI world share index and euro hit highest since March
* EU seals recovery fund plan after five days of talks
* Virus vaccine trial results add to bullish mood
* Investors expect U.S. stimulus of more than $1 trillion
* Gold shines at 9-year high
* World FX rates in 2020 tmsnrt.rs/2egbfVh
LONDON, July 21 (Reuters) - World shares climbed to their highest since February and the euro briefly hit its strongest since March on Tuesday, after European Union leaders sealed a 750 billion-euro ($857 billion) post-pandemic recovery plan after marathon talks.
Hopes that vaccines against the COVID-19 disease might be ready by the end of the year also supported the rally, following promising early data from trials of three potential vaccines.
News of the EU deal, which includes 390 billion euros of grants, down from an initially proposed 500 billion, along with 360 billion of low-interest loans, pushed the euro as high as $1.1470, while Germany’s DAX hit pre-COVID levels and other main EU indexes rose 1.25% - 2.2%.
EU summit chairman Charles Michel presented the final plan as a “pivotal” moment to dispel doubts about the bloc’s unity and future.
“This agreement sends a concrete signal that Europe is a force for action,” a jubilant Michel told a news conference. French President Emmanuel Macron, who spearheaded the deal with German Chancellor Angela Merkel, hailed it as “truly historic”.
Italian, Spanish, Greek, Portuguese, Polish and Hungarian government bonds rallied, reflecting that the countries will be allocated some of the largest amounts from the new fund when scaled to the size of their economies.
The Netherlands and Austria, which were part of a group of “frugals” that had been calling for stricter terms for the funding, saw their borrowing costs inch higher, along with Germany, France, Sweden, Finland and Denmark.
“It’s a significant step towards a more integrated and united Europe, which should boost the region’s appeal to global investors and facilitate its re-rating,” said Barclays’ head of European equity strategy Emmanuel Cau.
“The rise of the euro isn’t a major risk at the moment because it illustrates the lower risk premium for the region,” though it might weigh on exporters such as Germany at some point down the line, he added.
Wall Street futures were also up, by 0.5%, after its latest tech-led charge had pushed the Nasdaq up 2.5% to a record closing high, and the S&P500 to a five-month peak on Monday.
Asian and Australian shares followed with a 2% rise that took MSCI’s 49 country world index to its highest since February. Tokyo’s Nikkei ended up a more modest 0.7%, but the Sydney stock market clocked up its best day in over a month with a 2.6% jump.
SHOT IN THE ARM
The main all-world equity indexes now have rebounded 45% off their March lows, boosted mainly by the record levels of stimulus announced by governments and central banks to cushion the impact of COVID-19 and its ensuing lockdowns.
Early data from trials of three potential COVID-19 vaccines released on Monday, including a closely watched candidate from Britain’s Oxford University and one from CanSino Biologics and China’s military research unit, also helped lift markets.
The Oxford/AstraZeneca vaccine is one of 150 in development globally, but is considered the most advanced. In its Phase I trial, the vaccine induced so-called neutralizing antibodies - the kind that stop the virus from infecting cells - in 91% of individuals a month after they were given one dose, and in 100% of subjects who were given a second dose.
These levels were on a par with the antibodies produced by people who survived COVID-19, a benchmark of potential success.
Commodity markets also gained. Brent crude oil was up 31 cents at $43.59, while U.S. crude (WTI) gained 19 cents to $41.00, though both were within July’s tight $2-$3 trading range.
Gold rose to a nine-year high as expectations of higher inflation from increased stimulus overshadowed the resultant gain in risk appetite. Silver breached $20 for the first time since September 2016.
Spot gold was up 0.6% at $1,825 per ounce by 0800 GMT, after hitting its highest since September 2011. U.S. gold futures rose 0.4% to $1,823.80.
Gold tends to benefit from widespread stimulus as the metal is widely viewed as a hedge against rising prices and currency debasement.
“What’s really driving the gold market is stimulus and we are going to get more of it. It’s the eye candy that’s driving sentiment right now,” said Stephen Innes, chief market strategist at financial services firm AxiCorp.
With the EU recovery plan sealed, investors will now focus on possible further U.S. measures after the $3 trillion injected earlier this year.
Advisers to President Donald Trump and congressional Democrats were set to discuss the next steps on Tuesday, with congressional Republicans saying they were working on a $1 trillion relief bill.
($1 = 0.8747 euros)
Additional reporting by Hideyuki Sano in Tokyo, Sumeet Chatterjee in Hong Kong and Brijesh Patel in Bangalore; editing by Susan Fenton, Larry King, Jane MerrimanOur Standards: The Thomson Reuters Trust Principles.
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a3eab608aa5b00cf0d3733e83da37ab8 | https://www.reuters.com/article/global-markets/global-markets-europe-turns-red-as-bulls-run-out-of-charge-idUSL8N2DM21A?feedType=RSS&feedName=companyNews&rpc=31 | GLOBAL MARKETS-Europe turns red as bulls run out of charge | GLOBAL MARKETS-Europe turns red as bulls run out of charge
By Marc Jones3 Min Read
* Rally runs out of steam in Europe, stocks down 0.5-1.5%
* MSCI ex-Japan had scored longest winning streak since early 2018
* Oil and industrial prices drop as risk appetite dies
LONDON, June 9 (Reuters) - Stock market bulls were forced to a halt on Tuesday and high-flying currencies like the euro and Australian dollar lost altitude, as a weeks-long risk rally ran into some turbulence.
It all seemed so sudden. Asian equities had scored their ninth day of gains after landmark highs by Wall Street on Monday , but Europe’s big markets opened with a 0.5% to 1.5% lurch into the red.
The euro fell 0.3% in only its second drop in 11 days, bonds were back in favour, while another barb from China in its spat with Canberra saw the Aussie dollar drop a 1% having just set a 10-month top.
“It fells like the FX market is looking at the equity market and thinking perhaps we should position for a correction,” said Societe Generale strategist Kit Juckes, referring to the recent surge in global equity markets.
“It is going to depend on what the U.S. market does today as we have the FOMC (U.S. Federal Reserve policy announcement) to-morrow ...`but why wouldn’t you buy some yen at this point’.”
The optimism for equity markets came last week after U.S. jobs data showed a surprise decline in the unemployment rate. Wall Street indices surged, with the Nasdaq closing at a record level on Monday.
Global markets were mauled in March amid concern over both the short- and longer-term damage to the world economy from the coronavirus pandemic. But most indices are now back to pre-COVID-19 levels.
MSCI’s broadest index of Asia shares outside of Japan advanced for a ninth straight session for its longest winning streak since early 2018. The 49-country world index is up nearly 45% from 4-year lows struck in mid-March.
“The good news is that this shows central banks’ effort to stabilise the market have worked,” said Tai Hui, chief Asia market strategist at J.P. Morgan Asset Management.
Fears of renewed trade tensions between the United States and China and the second-round impact from higher unemployment and bankruptcies are hanging over the outlook, however.
In its latest Global Economic Prospects report on Monday, the World Bank said advanced economies are expected to shrink 7.0% in 2020, while emerging-market economies will contract 2.5%, their first slump since aggregate data became available in 1960.
On a per-capita gross domestic product basis, the global contraction will be the deepest since 1945-46, when World War Two spending dried up.
Tuesday’s wobble in markets saw the safe-haven Japanese yen head up 0.4% to 107.93, while the U.S. dollar’s gains elsewhere saw the greenback index make its best spurt since May 22.
The mood had shifted in commodity markets, too. Oil prices slipped over 1% in London after Brent had hit its highest in more than three months at $41 a barrel. Gold flipped higher as industrial metals copper, nickel and aluminum all fell.
Additional reporting by Swati Pandey in Sydney and Anshuman Daga in Singapore; editing by Larry KingOur Standards: The Thomson Reuters Trust Principles.
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1f00ce5c5f28dcc0b01c7966e090363a | https://www.reuters.com/article/global-markets/global-markets-global-markets-buoyant-as-u-s-stimulus-debate-approaches-idUSL8N2K83NV | GLOBAL MARKETS-Global markets buoyant as U.S. stimulus debate approaches | GLOBAL MARKETS-Global markets buoyant as U.S. stimulus debate approaches
By Tom Arnold4 Min Read
* MSCI world shares index up 0.4%
* GameStop’s Frankfurt-listed shares down 36.5%
* Silver tumbles further from eight-year high
* Biden for negotiations with Republicans on stimulus
* Euro at seven-week lows on economic outlook
LONDON Feb 2 (Reuters) - Global stock markets gained for a second day on Tuesday, spurred by increased optimism about economic stimulus and global recovery, while retail investors retreated from GameStop and their new-found interest in silver.
Positive momentum from Asia carried through to Europe, with the pan-European STOXX 600 climbing 1.1%.
Initial European Union estimates showed the euro zone economy contracted less than expected in the fourth quarter of 2020 but is heading for another, probably steeper decline, in the first quarter of 2021.
MSCI’s world equity index, which tracks shares in 49 countries, was up 0.4% after posting its strongest day in three months on Monday.
MSCI’s gauge of Asia-Pacific stocks outside Japan rose 1.4%. China’s benchmark CSI300 Index gained 1.5%, helped by easing concerns about tight liquidity and declining cases of new coronavirus infections. Japan’s Nikkei 225 added 1%.
E-mini futures for the S&P 500 index added 0.8%.
Markets were buoyant before negotiations Tuesday between U.S. President Joe Biden and Republican senators on a new COVID support bill. The GOP’s $618 billion stimulus plan released early Monday was about a third the size of the President’s proposal. Top Democrats later on Monday filed a joint $1.9 trillion budget measure in a step toward bypassing Republicans.
“If you have the ability to have stimulus compromise, it’s going to be very supportive for financial assets in the medium term as it means you will have the ability to have an economic recovery,” said Francois Savary, chief investment officer at Swiss wealth manager Prime Partners.
“The $1.9 trillion was set as a high bar of the possibilities and in a way to get into a negotiation to get something that would be smaller and more efficient.”
The dollar was near a seven-week high, benefiting from a euro selloff after coronavirus lockdowns choked consumer spending in Germany, and on short-covering in over-crowded dollar-selling positions.
The dollar index eased by 0.1% to 90.9.
Against the dollar, the euro was trading at $1.2032, just above an early December low hit in the previous session.
The Australian dollar pared gains after the country’s central bank said it would extend its quantitative easing programme to buy an additional $100 billion of bonds. The Aussie last stood at $0.7602, off the day’s high of $0.7662.
With global market sentiment remaining upbeat about U.S. fiscal stimulus, core euro zone government bond yields edged up, with the benchmark German 10-year Bund yield < DE10YT=RR.> around two basis points higher at -0.492%.
The 10-year U.S. Treasury note added 3 basis points to yield 1.1087%, its highest since Jan 22.
Institutional investors are still digesting the retail trading frenzy that boosted GameStop Corp and other so-called meme stocks in recent sessions against their financial fundamentals, but they have made cautious moves to protect their positions.
GameStop’s Frankfurt-listed shares were down 36.5% from Monday’s close at 132 euros ($158.8) on Tuesday. The shares closed in U.S. markets at $225.
Spot silver prices slipped 5% to $27.53 per ounce, as investors locked in profits after the precious metal touched a near eight-year peak in the previous session, driven by retail investors.
Spot gold fell 0.9% Tuesday to $1,841.96 per ounce.
Brent crude was up 2.3% at $57.65 a barrel. U.S. crude gained 2.35% to $54.82 a barrel after major crude producers showed they were reining in output roughly in line with their commitments. ($1 = 0.8312 euros)
Additional reporting by Kane Wu in Hong Kong; editing by Richard Pullin, Giles Elgood, Larry KingOur Standards: The Thomson Reuters Trust Principles.
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978d25abff1ec809c279c893c1c100c2 | https://www.reuters.com/article/global-markets/global-markets-global-shares-rise-despite-coronavirus-fears-gold-gains-idUSL1N2EF26B | Global shares rise despite coronavirus fears; gold gains | Global shares rise despite coronavirus fears; gold gains
By Herbert Lash5 Min Read
NEW YORK (Reuters) - Global stocks rose on Wednesday as recovery hopes overcame fears that a surge in coronavirus cases would slow the U.S. economy, but many investors still sought safety on pandemic worries, driving gold prices above $1,800 an ounce for the first time since 2011.
FILE PHOTO: Traders wear masks as they work on the floor of the New York Stock Exchange as the outbreak of the coronavirus disease (COVID-19) continues in the Manhattan borough of New York, U.S., May 28, 2020. REUTERS/Lucas Jackson
Stocks on Wall Street rose, and the Nasdaq marked a record closing high, boosted by technology shares, while demand for the dollar, a traditional safe harbor, slid even as the number of confirmed U.S. coronavirus cases surpassed 3 million. Still, demand for the dollar proved remarkably stable given Wall Street’s strength.
Yousef Abbasi, global market strategist at StoneX Group Inc in New York, said U.S. investors in particular are still comfortable with the idea of buying secular growth or select companies they think will thrive in a low-consumption economy.
While materials, industrial and bank stocks were lower, Abbasi said, other sectors were delivering gains.
“If you’re in an industry where your focus is in technology, such as enterprise software or e-commerce, providing the backbone for those businesses, you’ve been rewarded hand over fist,” Abbasi said.
The technology-rich Nasdaq finished at a record closing high, the fourth time in five days.
But investor sentiment remains tenuous as the pandemic resurges in the United States and elsewhere. Oil prices were steady as rising U.S. crude inventories and the coronavirus surge put the brakes on a recent recovery.
For a graphic on New COVID-19 cases: U.S. vs. select European countries-
The MSCI world equity index, a gauge of equity markets in 49 nations, rose 0.63% and its emerging markets index jumped 1.77% as investors continue to pour into Chinese equities.
“There is certainly a rush from retail to buy Chinese stocks,” Abbasi said. “Trading volumes are eclipsing their normal levels.”
The pan-European STOXX 600 closed down 0.67% as investors assessed the risk of more restrictive social distancing measures in some places and upcoming quarterly earnings reports.
Analysts expect companies listed on the STOXX 600 to report a 53.9% decline in profit in the second quarter, according toRefinitiv data.
London-listed HSBC shed 3.4% after Bloomberg reported U.S. President Donald Trump’s top advisers had weighed proposals to undermine the Hong Kong currency’s peg to the dollar, which could limit access to the greenback by Hong Kong banks.
“It is impossible for investors not to grow weary and eventually, at some point, fall prey to the endless drip of negative COVID-19 stories and how the second-wave virus will crush the market,” said Stephen Innes, chief global market strategist at AxiCorp.
The economy would likely suffer as some U.S. states reimpose coronavirus-related restrictions, but another nationwide shutdown would be “a big mistake,” White House economic adviser Larry Kudlow said.
On Wall Street, the Dow Jones Industrial Average rose 177.1 points, or 0.68%, to 26,067.28. The S&P 500 gained 24.63 points, or 0.78%, to 3,169.95 and the Nasdaq Composite added 148.61 points, or 1.44%, to 10,492.50.
In China, stocks extended their gains to seven sessions, with the blue-chip index up 1.6% to its highest close since June 2015.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.1%, just off the prior day’s four-and-a-half-month high.
Coronavirus cases were also on the rise in the Australian state of Victoria, which led to lockdown measures being re-imposed in Melbourne, the country’s second-biggest city.
For a graphic on World’s biggest stock markets since start of 2020:
Bond markets were focused on a meeting on Wednesday of European Union officials to discuss the shape of the EU’s recovery fund.
Yields on German 10-year government debt were unchanged at -0.441%, just above a one-week low of -0.495%.
The dollar index, which tracks the greenback versus a basket of six currencies, fell 0.4% to 96.493. The euro was up 0.54% while the yen was down 0.26% at $107.2300.
Spot gold rose 0.81% to $1,808.74 an ounce. U.S. gold futures settled 0.6% higher at $1,820.60 an ounce.
Brent crude futures rose 21 cents to settle at $43.29 a barrel, while U.S. crude futures settled up 28 cents at $40.90 a barrel.
Reporting by Herbert Lash; additional reporting Gertrude Chavez-Dreyfuss in New York, Tom Arnold in London and Swati Pandey in Sydney; Editing by David Gregorio and Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.
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dd9a950f2c786ddf491d3eae50f61ee6 | https://www.reuters.com/article/global-markets/global-markets-oil-and-stocks-fall-as-markets-still-rattled-by-fed-minutes-idUSL8N2FM2WV | REFILE-GLOBAL MARKETS-Oil and stocks fall as markets still rattled by Fed minutes | REFILE-GLOBAL MARKETS-Oil and stocks fall as markets still rattled by Fed minutes
By Elizabeth Howcroft5 Min Read
(Corrects spelling of name in paragraph 8)
* Graphic: 2020 asset performance tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 tmsnrt.rs/2egbfVh
* Reuters Live Markets blog:
LONDON, Aug 20 (Reuters) - The Federal Reserve’s doubts over the U.S. economic recovery kept markets in the red on Thursday, even though European stock indexes spent the morning recovering from initial losses.
Wall Street was knocked from its recent highs on Wednesday after the Fed’s minutes from its July meeting spooked investors by showing that the swift labour market rebound seen in May and June had likely slowed.
The S&P 500 had reached an all-time high earlier in the week as prices recovered to their pre-pandemic levels.
The sudden bearishness spilled into Asian markets overnight and continued in the European session, although shares started to recover as the morning progressed.
MSCI’s broadest index of Asia-Pacific shares outside Japan had its biggest daily decline in five weeks while the MSCI world equity index, which tracks shares in 49 countries, was down 0.6% at 1042 GMT.
The pan-European STOXX 600 fell 0.8% and London’s FTSE 100 was down 1.14%.
Several Fed policymakers said they may need to ease monetary policy to help get the economy through the coronavirus pandemic.
“It’s easy to forget that we’ve just experienced one of the largest and most severe economic shocks on record,” said Kasper Elmgreen, head of equities at Amundi.
“This story is not over yet, despite what the markets might be indicating,” he said.
“We are navigating a ship here with unusually low forward visibility and a very wide range of outcomes.”
Despite the dovish minutes, U.S. Treasury yields and the dollar rose with investors focusing on parts of the minutes that showed policymakers downplaying the need for yield caps and targets.
The dollar index, which measures the currency against a basket of major peers, was choppy overnight and last at 93.015, up less than 0.1% on the day.
“The key question for investors is whether the policy responses are enough to mitigate the economic damage,” BH Global, a fund managed by Brevan Howard, said in an interim report published on Thursday.
“Many businesses face solvency risks that are not addressed by borrowing; a debt overhang cannot be cured by more borrowing no matter how cheap it may be,” the fund’s report added.
“Improved financial conditions are narrowly focused on a handful of large companies and benefiting stakeholders who need relatively little economic assistance. The result is that financial assets are expensive by many standard metrics.
“So long as a V-shaped recovery in risky assets fails to create a V-shaped recovery in economic activity, this tension is a recipe for increased volatility,” it said, adding that the U.S. presidential elections in November could be a catalyst for such volatility.
Spot gold rebounded overnight but fell when European markets opened.
It was down 0.2% at 1046 GMT, at $1,926.4615 per ounce .
Oil prices fell, as major producers warned of a risk to demand recovery.
OPEC and its allies pressed oil nations that are pumping above output targets to cut more in August to September.
Brent crude was down 49 cents, or 1.1%, at $44.88 a barrel, while U.S. oil was down 48 cents, or 1.1%, at $42.45 a barrel.
It will take at least two years for the euro zone to fully recover from its deepest recession on record, according to a Reuters poll of economists.
Minutes from the European Central Bank’s July meeting are due at 1130 GMT.
Germany’s benchmark 10-year Bund yield fell for the fifth day in a row, hitting its lowest in more than a week at -0.499%.
Markets also remained cautious about acrimonious U.S.-China relations.
China’s commerce ministry said the two countries have agreed to hold trade talks “in the coming days” to evaluate their Phase 1 trade deal, struck six months ago.
Major central banks will reduce the frequency of seven-day dollar liquidity operations to once a week from September due to low demand and reduced financial market tension, the Bank of England said. They are currently held three times a week and are often met with no demand.
Reporting by Elizabeth Howcroft; Editing by Alex Richardson and Steve OrlofskyOur Standards: The Thomson Reuters Trust Principles.
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5ebe0f929779774e784274d4c3757df4 | https://www.reuters.com/article/global-markets/global-markets-shares-pause-awaiting-next-move-in-bonds-idUSL5N2L01XA | GLOBAL MARKETS-Shares pause, awaiting next move in bonds | GLOBAL MARKETS-Shares pause, awaiting next move in bonds
By Huw Jones4 Min Read
LONDON, March 2 (Reuters) - European shares paused on Tuesday as investors sought to guess the bond market’s next move, while weak German retail sales were a stark reminder of continued COVID-19 fallout on the region’s biggest economy.
Overnight falls in Asian stockmarkets, after a senior Chinese official expressed wariness about the risk of asset bubbles in foreign markets, and a drop in oil prices also weighed on sentiment, but the dollar was steady, along with U.S. Treasuries.
Analysts said a pause was to be expected after European shares had marked their best day in nearly four months on Monday when bond markets stabilized from a sharp selloff last week.
“We are in the yield waiting room to see whether central bankers push back this week on the ambivalence we saw last week about interest rates,” said Michael Hewson, chief market analyst at CMC Markets.
“Potentially that was a mistake, giving the impression that the U.S. did not really care about sharp rises in yields and sending the wrong message.”
The pan-European STOXX 600 share index edged 0.2% higher, with Paris down, while Frankfurt and London eked out slim gains.
Investors will scrutinise speeches from U.S. Federal Reserve officials, starting with Lael Brainard at 1800 GMT on Tuesday, for any tweaks to messages on bond yields.
European Central Bank vice president Luis de Guindos said the ECB has the flexibility to counter any undesired rise in bond yields, helping to soothe the German bund in early trading.
“We will have to see whether this increase in nominal yields will have a negative impact on financing conditions,” de Guindos told Portuguese newspaper Público in comments published on Tuesday.
Among the day’s economic data, German retail sales tumbled more than expected in January as an ongoing lockdown to fight the coronavirus pandemic curtailed retail spending.
U.S. stock futures were weaker .
CHINA BUBBLE WARNING
Shares in mainland China and Hong Kong fell after a top regulatory official expressed concerns about the risk of bubbles bursting in foreign markets.
“Financial markets are trading at high levels in Europe, the U.S. and other developed countries, which runs counter to the real economy,” Guo Shuqing, head of the China Banking and Insurance Regulatory Commission, told a news conference.
Chinese blue-chips slipped 1.3% while Hong Kong’s Hang Seng Index lost 1.2%.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.33%. Japan’s Nikkei was down 0.8% as some investors booked profits on defensive energy and utility shares before the end of the fiscal year this month.
U.S. stocks rallied overnight, with the S&P 500 posting its best day in nearly nine months, as bond markets calmed after a month-long selloff.
U.S. stocks were roiled last week when a selloff in Treasuries pushed the 10-year Treasury yield to a one-year high of 1.614%. The 10-year yield was flat at 1.4308%.
Bitcoin fell 1% to $49,135 after rising nearly 7% on Monday.
The U.S. dollar index was up 0.3% against a basket of currencies to stand at 91.32.
A stronger greenback weighed on gold, with the yellow metal at $1,719.74 an ounce, down 0.2%.
Oil prices slid on expectations that OPEC would agree to raise oil supply at a meeting this week. Brent crude dropped 68 cents, or 1.05%, to $63.01 a barrel. U.S. West Texas Intermediate (WTI) crude fell 58 cents, or 0.9%, to $60.05 a barrel.
Reporting by Huw Jones in London, Julie Zhu in Hong Kong; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.
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ae0465151bc248c91e778cf961c538ef | https://www.reuters.com/article/global-markets/global-markets-stocks-grind-higher-as-recovery-hopes-stand-firm-idUSL8N2DU3LG?feedType=RSS&feedName=companyNews&rpc=31 | GLOBAL MARKETS-Stocks grind higher as recovery hopes stand firm | GLOBAL MARKETS-Stocks grind higher as recovery hopes stand firm
By Marc Jones5 Min Read
* European shares add to best gains in nearly a month
* Nikkei eases after rally, S&P 500 futures rise
* Mood restrained by surge in virus cases, China/India spat
* Recovery hopes supported by jump in US retail sales
* Virus treatment drug trial also helps
LONDON, June 17 (Reuters) - Europe’s shares added to their best gains in almost a month as safety plays lost their lustre on Wednesday, with hopes of a rapid economic recovery holding firm against a resurgence of global coronavirus cases.
Data showed U.S. retail sales bounced back sharply in May, but new infections have hit record highs in six U.S. states, and China has cut flights and closed schools to contain a fresh outbreak in Beijing.
The theme of a strong global economic rebound “will need to be balanced against the 2nd wave COVID risks which are more difficult to assess, and we would argue investors have assumed to be perhaps more modest than in reality,” said MUFG’s head of research, Derek Halpenny.
Politics also lurked as a worry with India reporting 20 of its soldiers had been killed in clashes with Chinese troops at a disputed border site, while North Korea rejected a South Korean offer to send special envoys and said it would redeploy troops at the border.
That was enough to inject a tinge of caution into trading.
Japan’s Nikkei eased 0.5%, after jumping almost 5% on Tuesday for its biggest daily gain in three months.
Europe’s STOXX 600 trimmed its early gains too, but all the main indexes were still at least 0.6% higher, and U.S. S&P 500 futures were up 0.5% after spending much of the Asian session wavering either side of flat.
Trial results announced on Tuesday showed dexamethasone, used to reduce inflammation in other diseases such as arthritis, reduced death rates by around a third among the most severely ill COVID-19 patients admitted to hospital.
“It is one of the best pieces of news we’ve had through this whole crisis,” British Health Secretary Matt Hancock said.
MSCI’s broadest index of world shares crawled 0.2% higher, having climbed 2.2% the previous day to reclaim a good portion of the ground it lost in a relapse last week.
Chinese blue chips recovered from an early dip to finish steady despite Beijing’s worst resurgence in COVID-19 cases in four months.
That followed a robust session on Wall Street overnight. The Dow ended Tuesday up 2.04%, while the S&P 500 gained 1.90% and the Nasdaq 1.75%.
Hopes for recovery had been bolstered by the data showing U.S. retail sales data jumped by a record 17.7% in May, recovering more than half the losses of the previous two months, though industrial output still lagged.
The Trump administration was also reportedly preparing an up-to $1 trillion infrastructure package, something that was initially promised more than three years ago.
OVER THE WORST?
“There is little doubt that the global economy bottomed in April and is poised to post record-high growth rates over May and June, strongly lifting 3Q GDP above its 2Q trough,” wrote economists at JPMorgan.
“But questions about the extent of lasting damage will have to wait for a number of months before being resolved.”
Federal Reserve Chair Jerome Powell cautioned that output and employment would remain well short of their pre-pandemic levels for a long time, so there was a “reasonable probability” that more policy support would be needed.
All the talk of recovery caused headwinds for sovereign bonds.
Thirty-year Treasury yields were up 2 basis points at 1.55%, having risen by the most in a month on Tuesday, while 10-year German Bunds led similar moves across Europe.
The focus there was also turning to Thursday’s latest European Central Bank funding round of cheap long-term loans, which will see banks in effect paid to gobble up three-year funding.
“The tension between better economic data and rising COVID-19 cases continues to drive market volatility,” said Antoine Bouvet, senior rates strategist at ING in London.
The dollar bounced modestly from recent three-month lows to stand at 96.978 against a basket of currencies.
The dollar was up a touch on the Japanese yen at 107.34 , while the euro stood at $1.1244, off its recent top of $1.1422.
In commodity markets, gold was stuck at $1,717 and well within the $1,670/$1,764 range of the past few weeks.
Oil prices swung in and out of the red amid an increase in U.S. crude inventories. They had climbed 3% on Tuesday after the International Energy Agency (IEA) raised its oil demand forecast for 2020.
Brent crude futures were last at $40.45 a barrel having slithered between $41.46 and $40.06 a barrel, while U.S. crude dipped 60 cents to $37.70.
Additional reporting by Dhara Ranasinghe in London; editing by John Stonestreet and Kevin LiffeyOur Standards: The Thomson Reuters Trust Principles.
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7d9c271c41fb8ecb136b02656abfbb09 | https://www.reuters.com/article/global-markets/global-markets-stocks-mixed-as-investors-step-back-from-highs-idUSL1N2DM1GX?feedType=RSS&feedName=companyNews&rpc=31 | GLOBAL-MARKETS-Stocks mixed as investors step back from highs | GLOBAL-MARKETS-Stocks mixed as investors step back from highs
By Pete Schroeder4 Min Read
(Adds comments, Nasdaq at new record high)
* Nasdaq hits new record high after initial morning drop
* S&P 500, Dow Jones both down
* Gold up over 1%
WASHINGTON, June 9 (Reuters) - A recent run of optimism in markets hit the brakes on Tuesday, as investors pulled back from major stock indices and turned their attention to safe-haven assets like gold.
After nine days of gains in Asian equities, Europe’s big markets opened with a lurch and ended the day down 1.2%. Oil prices trended lower as concerns about a resurgence in coronavirus cases offset recent commitments by major oil producers to rein in production.
The tech-heavy Nasdaq Composite shook off early losses to climb 0.71% and set a fresh record high, while the Dow Jones Industrial Average and S&P 500 were both down at midday.
MSCI’s gauge of stocks across the globe fell 0.24%.
“We’ve gone really far in a short period of time. I would not be surprised to see the market sort of trend sideways within the next week or two,” said Tim Chubb, chief investment officer at Girard in West Chester, Pennsylvania.
Attention now turns yet again to the U.S. Federal Reserve, which kicks off a two-day meeting on Tuesday. No major policy announcements are expected when it wraps on Wednesday, but the central bank will issue its first economic projections since December. Investors will be watching as the central bank attempts to gauge the economic cost of widespread pandemic-related lockdowns to curb the spread of the new coronavirus.
The euro climbed 0.4%, while the safe-haven yen and Swiss franc gained against the dollar for a second straight day this week.
LOOMING IMPACT
After a brutal March for global equity markets amid concern over both the short- and longer-term damage to the world economy from the coronavirus pandemic, most indices are now back to pre-COVID-19 levels.
But fears of renewed trade tensions between the United States and China and the second-round impact from higher unemployment and bankruptcies are hanging over the outlook, however.
The number of layoffs in the U.S. dropped in April, but were still high enough to be the second most on record. At the same time, hiring hit an all-time low, the Labor Department reported Tuesday.
In its latest Global Economic Prospects report on Monday, the World Bank said advanced economies are expected to shrink 7.0% in 2020, while emerging-market economies will contract 2.5%, their first slump since aggregate data became available in 1960.
Gold jumped more than 1% on Tuesday as investors adopted a more cautious stance ahead of the Fed’s policy meeting.
Like in the U.S., Latin American stock indexes were down as investors cashed in profit after the recent risk rally. Regional currencies weakened ahead of a U.S. Federal Reserve meeting.
The declines caused the broader emerging markets shares benchmark to give up gains from earlier in the day, putting it on track to potentially end its longest winning streak since April last year.
Oil prices slipped nearly 1% after Brent had hit its highest in more than three months at $41 a barrel.
Reporting by Pete Schroeder in Washington and Herbert Lash in New York; additional reporting by Devik Jain in Bengalaru; Editing by Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.
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40ea933ca4acca7b56b1c00659076f2c | https://www.reuters.com/article/global-markets/global-markets-stocks-stall-but-china-charge-rumbles-on-idUSL8N2EE3I1 | GLOBAL MARKETS-Stocks stall but China charge rumbles on | GLOBAL MARKETS-Stocks stall but China charge rumbles on
By Marc Jones5 Min Read
* European stocks fall 1%, world shares set to end winning streak
* A$ falls as Melbourne reintroduces some lockdown measures
* Commodities weaker overall, but copper at five-month high
* U.S. dollar regains traction in FX markets
LONDON, July 7 (Reuters) - A five-day charge by world stocks fizzled on Tuesday as caution about renewed coronavirus lockdowns took hold again, though it was not enough to douse China’s July hot streak.
London, Paris and Frankfurt were down around 1% by early afternoon and Wall Street looked set for a drop, too, as investors shifted back into the dollar and government bonds.
Tokyo, Hong Kong and Seoul all lost ground in Asian trading. Shanghai’s blue-chip index was sputtering by the close after adding to its 15% gains over the past week.
New coronavirus cases have surged in several U.S. states, forcing some restaurants and bars to close again, in a setback to the budding recovery that had been propelling risk assets.
Lockdown measures were also reimposed in Melbourne, Australia, confining its nearly 5 million residents to all but essential travel for another six weeks.
The move was announced just before the state border between Victoria, of which Melbourne is the capital, and New South Wales, which contains Sydney, is scheduled to close.
“Just when many parts of the world looked to have got to grips with the coronavirus pandemic, many jurisdictions re-imposed lockdowns to contain a surge in new cases,” said Luca Paolini, chief strategist at Pictet Asset Management.
Corporate earnings are expected to fall by about 20% percent this year following the deepest recession in more than a century. Pictet expects a 30% to 40% slump.
“But that does not mean equity and corporate bond markets are due a sharp fall,” Paolini said, predicting the U.S. Federal Reserve will inject another $1.3 trillion of stimulus this year and the European Central Bank will add another 1.1 trillion euros ($1.24 trillion).
The euro zone economy will drop into a deeper recession this year than previously thought and take longer to rebound, the European Commission forecast on Tuesday. France, Italy and Spain are struggling the most.
Expectations are for a record 8.7% slump, then a 6.1% recovery in 2021. In early May, the commission had forecast a 2020 downturn of 7.7% and a 2021 rebound of 6.3%.
Analysts said signals from the Chinese government through a state-sponsored journal on “fostering a healthy bull market”, published on Monday, had helped the buying binge in Chinese shares.
The current China rally has echoes of the past, especially during 2007 and in 2015, which was largely driven by Chinese retail investors.
“Shades of John F. Kennedy’s ‘Ask not what your country can do for you’ inauguration speech here and as close as you might get to a Chinese government ‘put’ as anything the Fed has done to date vis-à-vis the U.S. stock (and credit) markets,” said Ray Attrill, head of FX strategy at NAB, in a research note.
A rebound in U.S. services in June, almost returning to pre-pandemic levels, had also helped to whet investors’ risk appetite.
TROUBLING TIMES
In the currency market, the Chinese yuan edged to its highest levels in nearly four months. The renminbi rose 0.1% to 7.0115 per dollar though it was a small-scale move compared to Monday’s near 1% jump.
“The yuan is supported by the risk-on mood in the Chinese share market despite lingering uncertainties over the U.S.-China relations and an anticipated slow pace of recovery,” said Ei Kaku, senior strategist at Nomura Securities.
Other major currencies were struggling as the dollar regained traction. The yen was flat at 107.41 to the dollar , the euro slipped back to $1.1275 and the Aussie dollar dropped 0.5% after headlines of Melbourne’s lockdown. .
Gold dipped but was still near an eight-year peak at $1,776 per ounce. Copper was weaker in London trading, having hit a five-month high as part of the China charge in Asia.
Oil prices were also struggling. Brent crude lost nearly 1% to $42.69 per barrel and U.S. West Texas Intermediate crude fell to $40.24.
With 16 U.S. states reporting record increases in new COVID-19 case in the first five days of July, according to a Reuters tally, there is renewed concern about demand for fuel in the world’s biggest oil-consuming country.
Florida is reintroducing some limits on economic re-openings to grapple with rising cases. California and Texas, two of the most populous and economically crucial U.S. states, are also reporting high infection rates.
“There are a couple of things that we are seeing, and some of them are troubling and might suggest that the trajectory of this recovery is going to be a bit bumpier than it might otherwise,” Atlanta Federal Reserve Bank President Raphael Bostic told the Financial Times.
The U.S. death toll from the coronavirus has now topped 130,000, Reuters calculations show. ($1 = 0.8857 euros)
Reporting by Marc Jones; editing by Catherine Evans, Larry KingOur Standards: The Thomson Reuters Trust Principles.
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55f53515a7edc30381df1034d7e1e055 | https://www.reuters.com/article/global-markets/global-markets-stocks-under-pressure-after-biggest-quarterly-drop-since-2008-idUSL1N2BO31R | GLOBAL MARKETS-Stocks under pressure after biggest quarterly drop since 2008 | GLOBAL MARKETS-Stocks under pressure after biggest quarterly drop since 2008
By Herbert Lash4 Min Read
* S&P 500 futures slide in Asia, Nikkei also falls
* U.S. coronavirus deaths top 700 in single day
* Pandemic threatens sharp global slowdown
* Yen gains after Federal Reserves new measures
NEW YORK, March 31 (Reuters) - Asian shares faced another leg lower on Wednesday as the coronavirus sharply slows global growth, leading a gauge of world stocks to post its biggest quarterly decline in more than a decade and oil prices to trade near lows last seen in 2002.
Shares on Wall Street tumbled on Tuesday, with the Dow registering its biggest quarterly fall since 1987 and the S&P 500 its steepest quarterly drop since a decade ago on growing evidence of the massive downturn the pandemic will incur.
E-Mini futures for the S&P 500 traded 1% lower in after-hours trade, while Asian futures suggested the rout would continue.
FTSE China A50 futures in Singapore were down 0.85% and Japan’s Nikkei fell 1.86% in early trade.
The first-quarter decline was the biggest on record for the S&P 500 as consumers hunkered down at home, leading businesses to announce massive staff furloughs and to shut temporarily.
U.S. economic activity is likely to be “very bad” and the unemployment rate could rise above 10% because of efforts to slow the spread of the coronavirus, Cleveland Federal Reserve Bank President Loretta Mester told CNBC.
The United States marked 700 deaths in a single day from COVID-19 for the first time on Tuesday, lifting total U.S. fatalities from the disease to more than 3,700.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.35% in early trade.
MSCI’s gauge of stocks across the globe shed 0.48% following modest gains in Europe. The index fell nearly 22% for the quarter.
Bucking the broader decline, Australian shares opened higher as a slowdown in new coronavirus cases brightened investor sentiment while rising iron ore prices gave miners a lift.
Australia’s S&P/ASX 200 index rose 1.59% after the benchmark fell 2% on Tuesday.
The number of coronavirus infections globally headed toward 800,000. Deutsche Bank analysts noted, however, that for two consecutive days the global growth in new cases was below 10%, having exceeded that rate for most of the past two weeks.
Health officials were much more cautious. A World Health Organization official warned that even in the Asia-Pacific region, the epidemic was “far from over.”
The dollar slid against a basket of currencies, pressured by the latest Federal Reserve measures to ensure sufficient liquidity in the global financial system.
The Fed is now allowing foreign central banks to exchange their holdings of U.S. Treasury securities for overnight dollar loans.
The dollar index fell 0.275% while the Japanese yen strengthened 0.12% versus the greenback at 107.44 per dollar.
Government bond yields held steady as investors remained cautious about buying riskier assets.
The benchmark 10-year U.S. Treasury note rose 15/32 in price to yield 0.6538%.
Crude oil benchmarks ended a volatile quarter with their biggest losses in history, with both U.S. and Brent futures hammered throughout March due to the pandemic and the eruption of the Saudi-Russia price war.
Global fuel demand has been sharply cut by travel restrictions due to the coronavirus. Forecasters at major merchants and banks see demand slumping by 20% to 30% in April, and for weak consumption to linger for months.
Crude futures ended the quarter down nearly 70% after record losses in March.
U.S. crude fell 31 cents to $20.17 a barrel and May Brent crude futures ended 2 cents lower at $22.74 a barrel ahead of expiration.
Reporting by David Randall; Editing by Dan Grebler, Nick Zieminski and David Gregorio; Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.
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02035ab8c977818d5d2c4f66c7c2b1ae | https://www.reuters.com/article/global-markets/global-markets-world-stocks-reach-new-peak-as-fed-focused-week-begins-idUSL5N1LZ27X | GLOBAL MARKETS-World stocks reach new peak as Fed-focused week begins | GLOBAL MARKETS-World stocks reach new peak as Fed-focused week begins
By 5 Min Read
* Wall Street set for new record high
* Asian shares highest in a decade; Europe also gains
* Fed expected to unveil balance sheet trim this week
* Sterling strongest since Brexit vote
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh (Updates prices)
By John Geddie
LONDON, Sept 18 (Reuters) - World stocks hit another record high on Monday and the dollar reached an eight-week peak against the yen on expectations the U.S. Federal Reserve will unveil plans this week to trim its bloated balance sheet.
With no new actions by North Korea over the weekend, investors pushed Europe’s main share index to a six-week high. MSCI’s broadest index of Asia-Pacific shares outside Japan had earlier risen to heights not visited since late 2007.
That nudged MSCI’s index of world stocks to a new all-time high while futures prices pointed to a new record high on Wall Street .
“The Fed could well set the balance-sheet-reduction process in motion,” said Daniel Lenz, an analyst at DZ Bank in Frankfurt. Such a move would be part of a global reversal of cheap money policy.
An address by U.S. President Donald Trump to world leaders at the United Nations on Tuesday and elections in Germany and New Zealand will add extra political uncertainty to the mix this week.
But the main event will be the Fed’s meeting on Tuesday and Wednesday, at which it is likely to take another step toward policy normalisation in what is rapidly becoming a worldwide trend.
Canada has already raised interest rates twice in recent months, while the Bank of England shocked many last week by flagging its own coming increases. The European Central Bank is meanwhile expected to shed more light on plans to exit its extraordinary stimulus next month.
Yet persistently subdued inflation despite a pick-up in global growth remains the “trillion dollar” question for central banks looking to normalise policy, a report from Bank for International Settlements said on Sunday.
As such, investors are far from persuaded the Fed will move on rates again this year, with a December change put at less than a 50 percent probability in the futures market.
“It is fair to say that in our recent travels most of the investors we have spoken to question not just a December hike, but whether the Fed will hike at all again this cycle,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets.
“When you press investors on the why, the standard reply is the lack of inflationary pressures.”
U.S. government bond yields jumped a hefty 14 basis points last week, but were little changed on Monday, as were most developed bond markets.
In Europe, the eye-catching move was a sharp slide in Portuguese yields -- and rise in prices -- after the country regained an investment grade rating after 5-1/2 years.
DOLLAR GAINS
In currencies, the dollar gained as much as 0.5 percent against the yen to hit 111.42, its highest since late July. The Bank of Japan is widely expected to maintain its massive asset buying campaign at a meeting on Thursday.
Political uncertainty may have a part to play in the BOJ’s thinking. Sources told Reuters on Sunday that Japanese Prime Minister Shinzo Abe was considering calling a snap election for as early as next month to take advantage of his improved approval ratings and of disarray in the main opposition party.
Against a basket of currencies, the dollar was flat at 91.870 after giving up earlier gains.
Sterling touched its highest since the Brexit vote on Monday after notching its best week in almost nine years against a currency basket.
Investors will be keeping a close eye on a speech by BOE Governor Mark Carney later on Monday. HSBC sees two more rate hikes by the BoE between now and the end of next year.
Talk of monetary tightening and a bounce in the dollar put gold on the defensive. The precious metal was off 0.4 percent at $1,314.43 an ounce.
U.S. crude oil prices rose above $50 per barrel on Monday and were near last week’s multi-month highs as the number of U.S. rigs drilling for new production fell and refineries continued to restart after getting knocked out by Hurricane Harvey.
For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
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d28c9e1b088f9e177d4e404bebb631f5 | https://www.reuters.com/article/global-metals-idINL4N2AJ0N4 | METALS-Copper picks up as new coronavirus cases fall for 2nd day | METALS-Copper picks up as new coronavirus cases fall for 2nd day
By Reuters Staff3 Min Read
Feb 19 (Reuters) - Copper prices edged up on Wednesday as concerns around the coronavirus eased after daily new infections dipped for a second straight day.
China’s National Health Commission reported 1,749 new confirmed cases of coronavirus infections, the lowest daily rise since Jan. 29. The death toll, however, passed 2,000.
The outbreak has hurt economic activities in China, the world’s top consumer of metals.
Three-month copper on the London Metal Exchange (LME) rose 0.3% to $5,787.50 a tonne by 0150 GMT, while the most-traded copper contract on the Shanghai Futures Exchange (ShFE) advanced 0.1% to 46,170 yuan ($6,584.43) a tonne.
FUNDAMENTALS
* COPPER SMELTING: Chinese refined copper production touched its lowest level in 20 months in January, but evidence does not show the extreme weakness that was feared due to the virus outbreak, a satellite surveillance of copper plants showed.
* CHINA IMPORTS: China’s imports of refined copper are likely to slide for a second year running in 2020 while the country’s aluminium consumption will dip slightly after a rare fall in 2019, research house Antaike said.
* CHILE: Copper prices is expected to rebound in the coming months from a downturn in demand caused by the coronavirus outbreak in China, Chilean mining minister Baldo Prokurica said.
* EV: Tesla is in advanced stages of talks to use batteries from CATL that contain no cobalt in electric vehicle (EV) batteries for cars made at its China plant, sources said.
* PRICES: LME aluminium advanced 0.1% to $1,722 a tonne and nickel rose 1.3% to $12,980 a tonne. ShFE aluminium increased 0.2% to 13,715 yuan a tonne while nickel was up 0.3% to 104,710 yuan a tonne.
* For the top stories in metals and other news, click or
MARKETS NEWS
* Asian shares and U.S. stock futures edged cautiously higher as investors tried to shake off worries about the coronavirus epidemic following the slight decline in new cases.
DATA/EVENTS (GMT)
0030 Australia Wage Price Index QQ, YY Q4
0930 UK CPI Jan
1330 US Housing Starts Number Jan
1900 US Federal Open Market Committee will
release the minutes from its January
28-29 policy meeting
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 7.0120 Chinese yuan) (Reporting by Mai Nguyen; editing by Uttaresh.V)
Our Standards: The Thomson Reuters Trust Principles.
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902abea102ddd9ec566e2515b4bd54cc | https://www.reuters.com/article/global-metals-idUSL3N15K3JI | METALS--Copper dips ahead of U.S. data, Lunar New Year holiday | METALS--Copper dips ahead of U.S. data, Lunar New Year holiday
By Eric Onstad3 Min Read
* ShFE copper stocks surge 13.8 pct, zinc stocks up 6.6 pct
* Market eyes U.S. jobs report for dollar direction (Updates with official prices)
LONDON, Feb 5 (Reuters) - Copper slipped on Friday as investors squared positions ahead of the Lunar New Year holiday in China, and as they awaited key U.S. jobs data later in the day.
However, copper was set for a third straight week of gains as industrial metals got a shot in the arm from a tumble in the dollar to three-month lows.
A weaker dollar makes commodities priced in the U.S. currency more competitive for buyers outside of the United States. The U.S. non-farm payrolls report due at 1330 GMT will be keenly eyed for its impact on the dollar.
“We’re waiting for the data for implications for the U.S. dollar and equity markets,” Eugen Weinberg, head of commodity research at Commerzbank, said.
“I wouldn’t read too much into today’s moves, especially in light of the strong gains in recent weeks, particularly for zinc. It’s not surprising to see them slightly under pressure.”
Three-month copper on the London Metal Exchange had slipped 0.4 percent to $4,667 a tonne in official trading, paring 1.1 percent gains in the previous session when prices hit the highest since Jan. 4 at $4,720 a tonne.
Copper was set to climb more than 2 percent for the week, coming within 1 percent of parity with the start of the year after an 8 percent slide to six-year lows in mid-January.
“In the past few days, dollar weakness has certainly supported the copper price,” said analyst Helen Lau at Argonaut Securities in Hong Kong.
“But looking at the longer term time horizon, there has been some improvement on the supply side, so overall we should not be too bearish.”
Given price-related cutbacks and shutdowns announced in the past six months, consultancy CRU anticipates a loss of 610,000 tonnes of contained copper from mine production this year.
Also weighing on prices ahead of the holiday was a surge in weekly inventories of copper, zinc and lead in ShFE warehouses.
Copper stocks jumped 29,317 tonnes, or 13.8 percent, zinc stocks rose 6.6 percent, while lead stocks more than doubled, reversing the fall from the prior week.
LME zinc, the best performer on the exchange so far this year, shed 0.1 percent in official rings to $1,713 a tonne, but was set for a 5 percent gain for the week.
Aluminium dipped 0.1 percent to $1,533 in official trading, lead fell 0.6 percent to $1,792, nickel lost 0.4 percent to $8,500 and tin bucked the weaker trend and added 0.7 percent to reach $15,100.
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
$1 = 6.5638 Chinese yuan renminbi Additional reporting by Melanie Burton in Melbourne; editing by Jan Harvey and David ClarkeOur Standards: The Thomson Reuters Trust Principles.
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1d9a817fa15954232b43c52f00990411 | https://www.reuters.com/article/global-metals-idUSL3N1PA3D6 | METALS-Zinc scales 10-year peak as base metals rally | METALS-Zinc scales 10-year peak as base metals rally
By Jan Harvey3 Min Read
* Metals rally as dollar slides to three-year low
* GRAPHIC-2018 asset returns: tmsnrt.rs/2jvdmXl
* LME/ShFE arb: bit.ly/2wZSAEz (Updates with closing prices)
LONDON, Jan 15 (Reuters) - Zinc hit another 10-year high on Monday as base metals rallied across the board on the back of a faltering dollar, with expectations that the European Central Bank may start trimming its stimulus programme lifting the euro to a three-year peak.
The dollar’s consequent weakness made assets priced in the U.S. unit cheaper for holders of other currencies.
“It is a dollar story ... which is behind this move,” said ING analyst Warren Patterson. “If you look at the speculative position in the metals, there is potential for further upside, if we continue to get positive economic data and strong manufacturing data.”
Fears over potential supply shortages and another drop in on-warrant inventories available to the market are helping to support the price of zinc, used primarily to galvanise steel.
The market has been disappointed not to have seen more zinc production capacity coming back from Glencore, Patterson said, after the company curtailed 500,000 tonnes of capacity from late 2015. Glencore announced plans in December to restart its Lady Loretta mine in the first half of this year.
“At least for the first half of this year, the zinc market is going to be fairly tight,” he said.
* ZINC PRICES: Three-month zinc on the London Metal Exchange closed 1.2 percent up at $3,423 a tonne, having earlier touched a peak of $3,440, its highest since August 2007.
* ZINC INVENTORIES: On-warrant zinc stocks in LME-registered warehouses fell by 10,000 tonnes to 116,675 tonnes, their lowest since early October, data showed on Monday, after fresh cancellations in New Orleans. Headline stocks are unchanged.
* POSITIONING: Large holdings of LME zinc warrants <0#LME-WHL> have stoked concerns about availability, keeping the premium for cash over the three-month contract CMZN0-3 at $44.80 a tonne, the highest since mid-November.
* COPPER: LME copper advanced 1.4 percent to $7,210 a tonne by the close. Prices have oscillated around a $7,070 to $7,315 range since late December, largely because of resilient demand from China.
* ALUMINIUM PRICES: LME aluminium finished 0.6 percent up at $2,227 a tonne. In late December it reached $2,290.50, its highest in more than four years, partly down to output cuts in top producer China.
* INVESTORS: Hedge funds and money managers trimmed net long positions in COMEX copper contracts in the week to Jan. 9, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.
* OTHER METALS: LME nickel closed with a 1.1 percent gain at $12,860 a tonne and tin finished 0.1 percent down at $20,300, off an earlier three-month high of $20,350. Lead ended the day 1.5 percent up at $2,587.
Additional reporting by Melanie Burton in Melbourne; Editing by David Evans and David GoodmanOur Standards: The Thomson Reuters Trust Principles.
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e204dbe9b57591c035bc7af588aeea5f | https://www.reuters.com/article/global-metals-idUSL3N1R31RG | METALS-Shanghai copper hits 6-month low as shorts increase | METALS-Shanghai copper hits 6-month low as shorts increase
By Reuters Staff0 Min Read
(Updates position data, prices) BEIJING, March 21 (Reuters) - Shanghai copper prices fell for a fourth day on Wednesday, marking their lowest close in almost six months amid fears of a trade war as investors waited for news on a U.S. interest rate hike. Short positions held by brokerages on the most traded May copper contract on the Shanghai Futures Exchange (ShFE) rose by almost 3,000 lots to 104,540 lots on Wednesday and now exceed long positions by more than 18,000 lots, ShFE data show. Markets are waiting to take their cue from the Federal Reserve's decision on interest rates later in the day, Malcolm Freeman, CEO of Kingdom Futures, wrote in a note. Higher U.S. rates may support a rising dollar, which would limit demand for dollar-denominated commodities such as copper from buyers paying with other currencies. "Aside from this there is also the growing paranoia around the possibility of a global trade war which appears in balance to be frightening the more speculative investors away from the sector," Freeman added. FUNDAMENTALS * SHFE COPPER: The May contract ended down 1.5 percent at 50,580 yuan ($7,989.13) a tonne, its lowest close since Sept. 22. Earlier in the session, it touched a low of 50,470 yuan and is down 4.5 percent so far this month. * LME COPPER: Three-month copper on the London Metal Exchange gave up early gains to trade down for a fifth session, falling 0.5 percent to $6,728 a tonne, as of 0725 GMT. It earlier touched a fresh three-month low of $6,720. * INVENTORIES: LME copper stocks MCUSTX-TOTAL grew by a further 3,200 tonnes on Tuesday to 322,475 tonnes, bringing this month's rise to 61 percent. * COPPER: Workers at Antofagasta PLC's Los Pelambres copper mine in Chile have opted to extend a period of government mediation in an effort to reach agreement on a new labor contract, an industry group said on Tuesday. * ALUMINIUM: Global primary aluminium output excluding China dipped to 2.009 million tonnes in February from a revised 2.221 million tonnes in January, International Aluminium Institute (IAI) data showed on Tuesday. * TARIFFS: The United Arab Emirates is asking Washington to exempt it from new U.S. tariffs on aluminium and steel and believes it has a strong case, a senior government official said on Tuesday. For the top stories in metals and other news, click or MARKETS NEWS * A hush settled over financial markets on Wednesday as investors counted down to a likely hike in U.S. interest rates and guidance on how many more to expect this year, while trade war fears kept export nations' currencies on edge. PRICES BASE METALS PRICES 0725 GMT Three month LME copper 6728 Most active ShFE copper 50580 Three month LME aluminium 2076.5 Most active ShFE aluminium 13925 Three month LME zinc 3195.5 Most active ShFE zinc 24400 Three month LME lead 2361.5 Most active ShFE lead 18340 Three month LME nickel 13385 Most active ShFE nickel 101480 Three month LME tin 20715 Most active ShFE tin 143300 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 1006.9 LME/SHFE ALUMINIUM LMESHFALc3 -1360.34 LME/SHFE ZINC LMESHFZNc3 431.94 LME/SHFE LEAD LMESHFPBc3 152.52 LME/SHFE NICKEL LMESHFNIc3 1180.43 ($1 = 6.3311 Chinese yuan) (Reporting by Tom Daly; Editing by Richard Pullin and Sherry Jacob-Phillips)
Our Standards: The Thomson Reuters Trust Principles.
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01117c849d912ae6a78ee3bcea9a9812 | https://www.reuters.com/article/global-metals-idUSL3N21X0K4 | METALS-Copper gains on solid China data, lower inventory | METALS-Copper gains on solid China data, lower inventory
By Reuters Staff3 Min Read
SINGAPORE, April 15 (Reuters) - Copper prices rose on Monday, after data from China showed higher unwrought copper imports in March, while declining inventory and concerns over supply deficit also lent support.
Three-month copper on the London Metal Exchange rose 0.4 percent to $6,510.50 a tonne by 0226 GMT, while the most-traded copper contract on the Shanghai Futures Exchange advanced 0.8 percent to 49,610 yuan ($7,397.19) a tonne.
China imported 391,000 tonnes of unwrought copper last month, up 25.7 percent from the previous month and 26.5 percent higher than a year earlier, data released on Friday showed.
China’s March copper ores and concentrates imports were also higher than the year-ago levels, at 1.77 million tonnes, but down from an unusually strong February.
“This squashed any concerns over soft demand post the Chinese New Year holiday. Sentiment was further boosted by strong credit and monetary data,” ANZ said in a note.
FUNDAMENTALS
* Copper stocks in LME-approved warehouses were down 2,000 tonnes on April 11 compared with the previous day, while copper inventories in warehouses tracked by the Shanghai Futures Exchange fell 5 percent from a week ago to 245,178 tonnes on Friday, latest data showed. MCUSTX-TOTALCU-STX-SGH
* Chinese miner MMG Ltd said that Las Bambas mine in Peru has progressively restored critical supplies and increased staffing levels over last week after indigenous communities ended a more than two-month blockade of a key highway.
* Rio Tinto Ltd said it would invest an extra $302 million to develop its Resolution copper project in the U.S. state of Arizona, as it looks to expands output to meet the lucrative market for new energy vehicles.
* Copper will face more disruptions this year than in 2018, as labour strife, extreme weather and unexpected project delays will knock as much as a million tonnes off 2019 production, Chilean miner Antofagasta chief executive said.
* For the top stories in metals and other news, click or
MARKETS NEWS
* Asian shares started on a firm footing and the dollar eased as risk appetite was whetted by better-than-expected data from China that helped boost confidence about the health of the world economy.
DATA/EVENTS (GMT)
0200 Indonesia Trade Balance March
0630 India WPI Inflation YY March
1000 EU Reserve Assets Total March
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS
($1 = 6.7066 Chinese yuan)
Reporting by Mai Nguyen; Editing by Subhranshu SahuOur Standards: The Thomson Reuters Trust Principles.
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77f597f4678e63523a879b798de71898 | https://www.reuters.com/article/global-metals-idUSL4N1U03FK | METALS-Copper, zinc hit new multi-month lows amid trade tensions | METALS-Copper, zinc hit new multi-month lows amid trade tensions
By 3 Min Read
* Zinc slides to lowest since June 2017
* Copper hits weakest in nearly 11 months
* LME/ShFE arb: bit.ly/2wZSAE
* GRAPHIC-2018 asset returns: tmsnrt.rs/2jvdmXl (Recasts, adds comments, updates with closing prices)
By Zandi Shabalala
LONDON, July 4 (Reuters) - Copper and zinc slid to fresh lows on Wednesday as speculators stepped up selling ahead of new trade tariffs on goods from China and the United States which could dampen demand for industrial metals.
Benchmark copper on the London Metal Exchange slumped to a low of $6,344 a tonne, its weakest since August 2017, before paring losses and closing at $6,386, a drop of 1.6 percent.
LME zinc tumbled 3.2 percent to finish at $2,700 a tonne, the lowest since June Last year.
“(U.S. President Donald) Trump is not fostering global trade,” said Julius Baer analyst Carsten Menke.
“There is scrutiny about the export side of the market in terms of copper-containing household goods or electronics being shipped out of China and we believe that will stay with us at least until U.S. mid-term elections in November.”
Washington has said it would implement tariffs on $34 billion of Chinese imports on July 6, and Beijing has vowed to retaliate in kind on the same day.
TRADE: China was ready to act, but would not fire the first shot in a trade war with the United States, its finance ministry said.
FREEPORT: Adding to pressure on copper by highlighting healthy supplies, Indonesia has extended a temporary operating permit for Freeport McMoRan Inc’s Grasberg project, the world’s second-biggest copper mine, until the end of the month.
CHINA DATA: Growth in China’s services sector accelerated in June to a four-month high, buoyed by a pickup in new businesses and a sustained increase in employment, a private survey showed.
ZINC INVENTORIES: Traders are watching a large holding, between 40 and 50 percent of total zinc inventories on the LME. It has fuelled worries about a short-term shortage on the LME market and led to a premium for the cash contract over the three-month, which was at $51 on Wednesday. CMZN0-3
CHINA POLLUTION: Aluminium, was the only LME metal to end in the black, rising 0.4 percent to end at $2,089 a tonne.
It got a boost when China’s top steelmaking city Tangshan ordered companies in the steel, coke and coal-fired power sectors to meet ultra-low emissions targets, the latest effort to curb air pollution.
“Even though this drive’s effect on the aluminium industry remains unclear, some will see it as a positive,” Alastair Munro at broker Marex Spectron said in a note.
PRICES: Nickel and lead both hit the lowest levels since May. Nickel shed 1.9 percent to close at $14,145 a tonne while lead dropped 2.9 percent to $2,322.
Tin ended 0.3 percent weaker at $19,600 after falling to $19,500, the lowest since Dec. 27 last year.
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9358c2082a8476ed29e18da6d9429e47 | https://www.reuters.com/article/global-metals-idUSL4N24U0HV | METALS-Base metals rise ahead of U.S.-China trade talks | METALS-Base metals rise ahead of U.S.-China trade talks
By Reuters Staff3 Min Read
SINGAPORE, July 29 (Reuters) - Most industrial metals on the London Metal Exchange rose on Monday, ahead of planned trade talks between U.S. and Chinese officials.
Trade negotiators from the United States and China will meet in Shanghai this week for a two-day discussion aimed at resolving the year-long trade war between the world’s two biggest economies.
Three-month copper on the London Metal Exchange rose 0.2% to $5,977 a tonne by 0142 GMT, while aluminium advanced 0.3%, nickel was up 0.4%, zinc increased 0.3% and lead edged up 0.3%.
FUNDAMENTALS
* TRADE TALK OUTLOOK: Despite the talks, U.S. President Donald Trump offered a pessimistic view on reaching a trade deal with China, saying Beijing may try to delay reaching a trade deal until the 2020 election.
* SHANGHAI PRICES: The most-traded copper contract on the Shanghai Futures Exchange fell 0.3% to 46,940 yuan ($6,822.97) a tonne and aluminium dipped 0.3% while nickel advanced 0.2% and zinc was up 0.7%.
* CHINA: Profits earned by China’s industrial firms contracted in June after a brief gain the previous month, fuelling concern that a slowdown in manufacturing from a bruising trade war will drag on economic growth.
* ARSENIC COPPER: Glencore has started a new copper concentrates blending facility in Taiwan to mix clean material with ores containing high levels of arsenic, three sources familiar with the matter said.
* ALUMINIUM: United Company Rusal reported a 21% rise in second quarter aluminium sales compared to the previous quarter, as the Russian aluminium giant’s recovery from 10 months under U.S. sanctions accelerated.
* For the top stories in metals and other news, click or
MARKETS NEWS
* Asian shares got off to a cautious start as markets count down to a likely cut in U.S. interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline.
DATA/EVENTS (GMT)
0600 UK Nationwide house price m/m July
0600 UK Nationwide house price y/y July
-- Japan Bank of Japan holds Monetary Policy Meeting
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 6.8797 Chinese yuan renminbi) (Reporting by Mai Nguyen; editing by Richard Pullin)
Our Standards: The Thomson Reuters Trust Principles.
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43d23462733d6e54a6d1c379536028ab | https://www.reuters.com/article/global-metals/metals-aluminium-hits-one-month-low-on-global-demand-worries-idUKL4N24X2UU?edition-redirect=uk | METALS-Aluminium hits one-month low on global demand worries | METALS-Aluminium hits one-month low on global demand worries
By Eric Onstad3 Min Read
* GRAPHIC-2019 asset returns: tmsnrt.rs/2jvdmXl (Adds comment on China PMI, updates prices)
LONDON, Aug 1 (Reuters) - Aluminium prices hit their lowest in about a month on Thursday on fears of weak consumption after the world’s biggest steelmaker cut its global demand forecast and Chinese data showed shrinking factory activity.
Top steelmaker ArcelorMittal cut its estimate for global steel demand growth to between 0.5% and 1.5% in 2019 from a previous forecast of 1%-1.5%.
“People are getting a bit nervous about the demand side and seasonally this is also weak period for global industrial demand,” said Colin Hamilton, director of commodities research at BMO Capital.
“On the whole, I still have most of these base metals markets in deficit this year, but deficits don’t matter without better demand,” Hamilton said.
Benchmark aluminium on the London Metal Exchange dropped for a third session and had slipped 1.2% to $1,779 a tonne by 1420 GMT, its weakest since July 3.
Three-month LME copper touched its lowest since July 10 at $5,876 a tonne before paring losses to $5,897, a decline of 0.5%.
* FED: Also weighing on markets were comments by the head of the U.S. central bank that an interest rate cut might not be the start of a lengthy campaign to shore up the economy against risks.
* DOLLAR: The U.S. Federal Reserve comments helped to propel the dollar index to a 26-month peak, making commodities priced in the U.S. currency more expensive for buyers using other currencies.
* TRADE TALKS: U.S.-Chinese trade talks in Shanghai ended without any meaningful progress, “highlighting the reality that a deal is far from being reached”, ANZ said in a note.
* CHINA PMI: Pressure on factories in top metals consumer China eased a little in July thanks to growth-boosting steps from the government, but overall manufacturing activity remained in contraction as the trade war with the United States dented export orders, a private survey showed.
“Despite the small upturn in the July PMIs, China’s economy looks set to slow further in the coming months,” Caroline Bain, chief commodities economist at Capital Economics, said in a note.
* COPPER TIME SPREADS: The discount of LME cash copper to the three-month contract CMCU0-3 rose to $24.75 a tonne by Wednesday's close, the deepest discount since June 17, indicating healthy near-term supply. The discount was $6.25 three weeks ago.
* PRICES: LME zinc slid 1.8% to $2,400 a tonne after touching $2,380, its lowest since July 10.
Lead shed 1.1% to $1,987 after hitting a two-week low of $1,978, while nickel dipped 0.1% to $14,465 and tin fell 0.1% to $17,275 after hitting a three-year low of $17,200. (Additional reporting by Tom Daly in Beijing Editing by David Goodman and Edmund Blair)
BreakingviewsReuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.
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4e385ee14daa21f457c708492bd85ba3 | https://www.reuters.com/article/global-precious/precious-trumps-north-korea-threat-lifts-gold-ahead-of-fed-statement-idUKL5N1M12MI?edition-redirect=uk | PRECIOUS-Gold falls 1 pct, hits three-week low after Fed statement | PRECIOUS-Gold falls 1 pct, hits three-week low after Fed statement
By 0 Min Read
* Gold slides to lowest since Aug. 28 * Fed keeps rates steady, will trim portfolio * Fed signals it expects rate hike by year-end (Updates prices; adds details on markets, comment about net longs) By Dave Gregorio and Peter Hobson NEW YORK/LONDON, Sept 20 (Reuters) - Gold prices fell 1 percent on Wednesday after the U.S. Federal Reserve left interest rates unchanged but signaled it still expected to raise interest rates by year-end. Gold had been creeping higher in the minutes before the Fed released a statement about its latest two-day policy meeting, then reversed course and fell. It briefly sank below the $1,300 mark that traders had viewed as psychological support. Bullion hit $1,295.81 an ounce, the lowest since Aug. 28. As expected, the Fed also said it would start to reduce the portfolio of Treasuries and mortgages it acquired through its quantitative easing (QE) program after the financial crisis. New projections after the Fed meeting showed 11 of 16 officials favored higher benchmark U.S. interest rates by year-end. "The Fed came out and said they were going to do their QE reversal of about $10 billion a month; they still expect a Fed rate hike in December and three more in 2018. This puts a little pressure on gold," said Jeff Klearman, portfolio manager at GraniteShares, a provider and manager of exchange traded funds. Spot gold was down 0.76 percent at $1,301.2 an ounce by 3:55 p.m. EDT (1955 GMT), trading back above the $1,300 level. "The natural resistance is that hard number of $1,300," said Dan Denbow, portfolio manager at USAA Precious Metals and Minerals Fund. Benchmark U.S. Treasury yields jumped to their highest in six weeks, while Wall Street stocks fell after the Fed meeting. The dollar turned higher against a basket of currencies, reversing an earlier drop. Bill O'Neill, co-founder of Logic Advisors, noted that speculative investors had added to their net long position in gold for nine straight weeks, making the market vulnerable to more selling. "A number of them are underwater so they're already in a losing mode," he said, adding that if gold slips much more "that would add a significant number of very weak longs in the market." He said gold selling could intensify if U.S. Treasury yields rise more or the dollar strengthens further. Rising bond yields make non-yielding assets such as bullion less attractive. A rising dollar also tends to hurt the value of gold. Spot silver was down 1.27 percent at $17.10 an ounce, while platinum fell 0.63 percent at $942 an ounce. Palladium was up 0.39 pct at $912 an ounce. The most active U.S. gold futures for December delivery settled up $5.80, or 0.44 percent, at $1,316.40 per ounce. (Additional reporting by Apeksha Nair in Bengaluru; Editing by Richard Chang and Lisa Shumaker)
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2c609291305c92d6c16229e1632def9c | https://www.reuters.com/article/health-coronavirus-airlines-masks/exclusive-us-airlines-tell-crews-not-to-force-passengers-to-wear-masks-idUSL1N2CU1VP | EXCLUSIVE-U.S. airlines tell crews not to force passengers to wear masks | EXCLUSIVE-U.S. airlines tell crews not to force passengers to wear masks
By Tracy Rucinski2 Min Read
May 12 (Reuters) - The top three U.S. airlines have told their flight attendants not to force passengers to comply with a new policy requiring face coverings, just encourage them to do so, according to employee policies reviewed by Reuters.
American Airlines Holdings Inc, Delta Air Lines Inc and United Airlines Holdings Inc have told employees that they may deny boarding at the gate to anyone not wearing a face covering, and are providing masks to passengers who do not have them, the three carriers told Reuters.
Inside the plane, enforcement becomes more difficult.
“Once on board and off the gate, the face covering policy becomes more lenient. The flight attendant’s role is informational, not enforcement, with respect to the face covering policy,” American told its pilots in a message seen by Reuters explaining its policy, which went into effect on Monday.
“Bottom line to the pilots: a passenger on board your aircraft who is being compliant with the exception of wearing a face covering is NOT considered disruptive enough to trigger a Threat Level 1 response,” referring to some kind of intentional disruption by a passenger that could cause the captain to divert the flight. (Reporting by Tracy Rucinski; Editing by Peter Cooney)
Our Standards: The Thomson Reuters Trust Principles.
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359a5fff1db02f137431c685e36080ab | https://www.reuters.com/article/health-coronavirus-airlines-vaccine/vaccine-airlift-delivers-shot-in-the-arm-for-airlines-idUKKBN28H1E7?edition-redirect=uk | Vaccine airlift delivers shot in the arm for airlines | Vaccine airlift delivers shot in the arm for airlines
By Laurence Frost, Tracy Rucinski, Jamie Freed6 Min Read
PARIS/CHICAGO/SYDNEY (Reuters) - Airlines battered by COVID-19 are prepping for key roles in the mass vaccine rollout that promises to unlock an immediate boost for the sector - and beyond that, its own recovery and survival.
Big challenges await carriers leading the airlift, as well as the drugmakers, logistics firms, governments and international agencies planning the deployment across networks blighted by the pandemic.
The gargantuan effort should nonetheless help airlines involved to trim their crisis losses, experts say, while bringing additional benefits to the broader sector, from supporting cargo pricing and revenue to restoring routes.
Developing vaccines in record time was the easy part, or “the equivalent of building base camp at Everest”, according to World Health Organization vaccines director Kate O’Brien.
“The delivery of these vaccines, the confidence in communities, the acceptance of vaccines and ensuring that people are in fact immunized with the right number of doses - (this) is what it’s going to take to scale the peak,” she said recently.
Britain is about to become the first country to begin administering the Pfizer-BioNTech jab, which requires storage below minus 70 Celsius. Moderna’s shot, stored at -20C, is close behind.
In line for major roles are freight specialists and airlines with large cargo arms - such as Germany’s Lufthansa, Air France-KLM and Hong Kong-based Cathay Pacific - often under contract for forwarders and integrators like UPS, Fedex and DHL.
Gulf carriers Qatar Airways and Emirates as well as Turkish Airlines, all slammed by the long-haul travel collapse, can leverage their vast connecting hubs. Turkish has begun flying China’s Sinovac vaccine to Brazil and, like many peers, is increasing its cold chain capacity and storage.
FILE PHOTO: An American Airlines cargo plane is unloaded at Philadelphia International Airport in Philadelphia, Pennsylvania, U.S., December 4, 2020. American Airlines Cargo is the largest facility for pharmaceutical products on the East Coast, and could soon be used to store coronavirus disease (COVID-19) vaccines. REUTERS/Rachel Wisniewski
BRIGHT SPOT
While the earnings windfall is “difficult to quantify”, Cathay commercial chief Ronald Lam told analysts recently, “there will be a positive impact either directly through vaccine transportation or the surge in overall cargo demand.”
Freight is already a bright spot. Many airlines are making unprecedented cargo profits in 2020 even while chalking up record losses overall.
Before the crisis, half the world’s air cargo travelled on some 2,000 freighters, and the rest on passenger jets.
So as lockdowns grounded flights, cargo rates soared, helping carriers keep remaining passenger routes open and avoid more red ink. Cargo’s share of revenue will triple to 36% this year as prices or yields rise 30%, airline body IATA projects.
“The profit margins of all the cargo operations will be very strong in 2020 as a result of the extraordinary circumstances, and will be sustained at that level in 2021 as a result of the vaccine distribution,” HSBC analyst Andrew Lobbenberg said.
Carriers joining the airlift can expect “a very significant impact on the cargo economics”, he said in a note.
Flying one dose to every human would fill 8,000 747s, IATA estimates. While a minority of vaccine deployments may not need air transport, many require two shots per person.
Some freight operators are already seeing other goods bumped off flights by vaccines, trade newsletter The Loadstar reported here.
“There’s a lot less air capacity in the market,” United Airlines cargo chief Christopher Busch told Reuters. “So we need to balance not only what vaccines are coming, but how we continue to move the product that was moving before.”
DISRUPTION RISK
IATA, representing 290 airlines, warns that vaccine rollout could be “compromised” without an easing of the travel curbs and quarantines it has lobbied against.
“There are parts of the world that have no cargo operations once the passenger networks are grounded,” IATA head of cargo Glyn Hughes said.
But UNICEF, whose polio and other immunization campaigns were initially hit by lockdowns, believes lessons have been learned and is now focused on resisting cargo price hikes, as it sources COVID-19 vaccines for 92 poorer countries.
The U.N. children’s agency is having an “early conversation” with airlines to plan capacity and keep rates down, said transport chief Pablo Panadero, who still sees prices as high as twice pre-crisis levels.
“Of course we as UNICEF are making them aware of the humanitarian and even societal importance of these undertakings - this is getting their own industry back in business,” he said.
Cargo carriers may face reputational risk if they use the full clout of their current pricing power, observers warn.
“It’s not a good look to be seen to be profiteering,” said Frederic Horst, managing director of Cargo Facts Consulting.
But Horst expects no repeat of the scramble for masks and medical equipment earlier in the pandemic, when “a lot of government-organised charters were bringing this stuff in, and they were just overpaying.”
This time the airlift will be run by logistics firms who make smarter customers, he said.
“They understand when they’re being pulled over the table and will just go to another carrier.”
Reporting by Tracy Rucinski and Jamie Freed; Writing by Laurence Frost in Paris; Additional reporting by Michelle Nichols in New York and Stephanie Nebehay in Geneva; Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.
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e9e2dc56d39814cc483115504648bd4e | https://www.reuters.com/article/health-coronavirus-anniversary/six-months-after-viral-pneumonia-wuhan-returning-to-normal-with-masks-idUSL4N2E734P | Six months after 'viral pneumonia', Wuhan returning to normal, with masks | Six months after 'viral pneumonia', Wuhan returning to normal, with masks
By Xihao Jiang, Martin Quin Pollard3 Min Read
WUHAN, China/BEIJING (Reuters) - Six months after the World Health Organization learned of “viral pneumonia” cases that would become the COVID-19 pandemic, life in Wuhan, the city where it emerged, is returning to normal, although masks remain ubiquitous and emotional scars linger.
A city of 11 million, Wuhan was locked down for two months starting in late January in a draconian measure that helped stamp out the virus at its initial epicentre. Hubei province and its capital city Wuhan accounted for most of China’s 83,531 new coronavirus cases and 4,634 deaths.
“As time goes on, the epidemic situation is slowly getting better and the virus has basically gone for now,” said resident Pan Yuan, 35.
“We will take off masks when we go to some places with low risk. Though we are told there is no need to wear masks in Wuhan, people still wear masks,” she said.
“I still feel sad when talking about it.”
China has contained the outbreak, thanks to measures such as widespread testing and contact-tracing, although it is dealing with a flare-up this month in Beijing.
“When it broke out half a year ago, people were scared of it. I felt stressful as it threatened my family,” said Li Chao, a 32-year-old father in Wuhan. “Thanks to efforts made by the government and the people together, the epidemic has improved.
Slideshow ( 16 images )
“Life and work are gradually getting back to normal.”
Traffic on the roads is increasing and people are shopping in markets and returning to work in offices, where additional measures are in place such as temperature screening.
In Beijing, which has reported seven new cases on each of the last two days, residents spoke of inconvenience, not fear.
“I think it’s mainly my way of work that’s changed. Before all this we all worked in the office. Now, after the outbreak, we all work from home alone,” said a 27-year-old man surnamed Jin.
Another Beijing resident, surnamed Sun, said wearing a mask was uncomfortable and the pace of life had slowed.
“On the other hand, with the pace of life slowing down somewhat, pressures in life have increased. That’s because if the pace of life slows down then financial pressures increase.”
Reporting by Xihao Jiang and Martin Quin Pollard; Writing by Tony Munroe; Editing by Janet LawrenceOur Standards: The Thomson Reuters Trust Principles.
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b778a9368ca1aa7ed716d68ef776c832 | https://www.reuters.com/article/health-coronavirus-apes/nine-great-apes-in-san-diego-become-first-non-human-primates-vaccinated-for-covid-19-idUSL2N2L301N?utm_term=OZY&utm_campaign=pdb&utm_content=Friday_03.05.21&utm_source=Campaigner&utm_medium=email | Nine great apes in San Diego become first non-human primates vaccinated for COVID-19 | Nine great apes in San Diego become first non-human primates vaccinated for COVID-19
By Steve Gorman3 Min Read
LOS ANGELES (Reuters) - Nine great apes at the San Diego Zoo - four orangutans and five bonobos - made veterinary history in recent weeks as the world’s first non-human primates known to be vaccinated against COVID-19, zoo officials said on Thursday.
Slideshow ( 4 images )
One of the recipients was a 28-year-old female Sumatran orangutan named Karen who had garnered headlines at the zoo when she became the first ape to undergo open-heart surgery in 1994.
Each of the nine animals received two doses of an experimental vaccine originally designed for dogs and cats, with the apes exhibiting no adverse reactions, and are all doing well, zoo spokeswoman Darla Davis said in an email to Reuters.
Zoo officials went ahead with the shots over concerns about the animals’ wellbeing after a troop of eight gorillas at the affiliated San Diego Zoo Safari Park fell ill with COVID-19 in January, marking the first known transmission of the virus to great apes.
The eight gorillas, including a 48-year-old male “silverback” named Winston who suffered from pneumonia and heart disease, have since improved and appear to be on their way to a full recovery, Davis said.
Winston was treated with a variety of medications, including a coronavirus antibody therapy for non-humans.
The gorillas were not vaccinated because veterinarians assumed their immune systems had already developed antibodies to the virus. They were thought to have caught the illness from an asymptomatic staff member.
The orangutans and bonobos selected for immunization were among the great apes at the zoo considered the most at risk of catching the virus and among the easiest to inoculate. Staff vaccinated the animals by distracting them from the needle with treats.
Zoo staff began administering the shots to some of the animals in January and continued through February, with the last few given in March, Davis said.
The vaccine developed by veterinary pharmaceutical company Zoetis was not tested on apes. But cross-species use of vaccines is not uncommon, and apes at the zoo get human flu and measles vaccines, according to Nadine Lamberski, chief conservation and wildlife officer for the San Diego Wildlife Alliance, the entity that owns the zoo and safari park.
She said the nine great apes were the first non-human primates known to have received a COVID-19 vaccine of any kind.
Reporting by Steve Gorman in Los Angeles. Editing by Gerry DoyleOur Standards: The Thomson Reuters Trust Principles.
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9a45022166c1bb036e5051e030af8cfa | https://www.reuters.com/article/health-coronavirus-argentina/argentinas-health-minister-tests-positive-for-covid-19-one-week-into-job-idUSL1N2KW3MM | Argentina's health minister tests positive for COVID-19 one week into job | Argentina's health minister tests positive for COVID-19 one week into job
By Maximilian Heath2 Min Read
BUENOS AIRES, Feb 26 (Reuters) - Argentina’s newly appointed health minister Carla Vizzotti said on Friday she had tested positive for COVID-19, one week after her predecesor resigned following reports that VIPs in the South American nation had jumped the line to receive vaccination shots early.
Vizzotti, who replaced former minister Ginés González García, said on social media she would quarantine for several days as she recovers from the illness. President Alberto Fernandez´s chief of staff Santiago Cafiero said he too would quarantine as a precaution after recent meetings with Vizzotti.
Argentines have been growing more frustrated with a slow-moving vaccination program wrought with scandal. Since December, Argentina has been using primarily Russia’s Sputnik V vaccine to inoculate frontline health workers, and deliveries have lagged far behind initial projections.
The country has also recently received deliveries from Chinese pharmaceutical company Sinopharm, as well as the Indian Serum Institute of COVISHIELD, its brand name for the AstraZeneca vaccine.
But those latest deliveries were quickly overshadowed by reports and government statements that revealed family members of prominent politicians had received early vaccinations.
Vizzotti has pledged greater transparency in the program, while the Attorney for Administrative Investigations has opened a file to look into whether there were any abuses of power.
Two Aerolineas Argentinas planes departed for Russia Friday evening to bring Argentina a new batch of Sputnik V vaccines against COVID-19, the state airline said in a statement, inspiring fresh hope.
Argentina, a top global grains producer, has reported 2.1 million cases of COVID-19 since March of 2020, and more than 51,000 deaths from the disease. (Reporting by Maximilian Heath, writing by Dave Sherwood; Editing by David Gregorio)
Our Standards: The Thomson Reuters Trust Principles.
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8d466d07f918db13214a4855348f6327 | https://www.reuters.com/article/health-coronavirus-arizona-teachers/in-arizona-school-reopening-sparks-protest-movement-idUSL2N2EJ0CD | In Arizona, school reopening sparks protest movement | In Arizona, school reopening sparks protest movement
By Andrew Hay, Brendan O’Brien5 Min Read
July 18 (Reuters) - Arizona third-grade teacher Stacy Brosius has been called a “liberal socialist Nazi” and a “whiner and complainer” for leading car-based protests to delay in-person schooling, but she says she’s doing it to save lives in a pandemic.
Inspired by Black Lives Matter demonstrations, hundreds of Arizona teachers like Brosius are putting on red t-shirts they last wore in a 2018 strike and driving around cities in cars daubed with slogans like: “Remote learning won’t kill us but COVID can!”
With “motor marches” spreading to other coronavirus-hit sunbelt states, including Florida, and counter demonstrators organizing “reopen” rallies, the fight over the new school year is fast becoming America’s new protest flashpoint.
In Arizona, teachers want Republican Governor Doug Ducey to push the start of in-person school to at least early October after a beloved educator died of COVID-19 teaching summer school and statewide hospitalizations and deaths spiral.
At stake, Arizona teachers say, is the safety of the state’s 1.1 million public school students and 20,000 teachers.
“We don’t want any children to get this from us, because as a teacher, I don’t want to go to any of their funerals,” said Brosius, 47, who is not prepared to send her three children back to school.
School re-openings have become a white-hot election issue after President Donald Trump demanded a return to in-person learning throughout the United States, while Democrats urge remote schooling until COVID-19 case rates flatten.
Arizona has been hit hard by the virus this summer as its 7-day average of new cases has gone from 500 at the end of May to more than 3,000 in July, while hospitals’ intensive care capacity, according to most recent data from Arizona Department of Public Health, stood at a nearly 90 percent this week.
Ducey on Thursday said he would not be swayed by politics, adding he would be comfortable sending his children back to school, as did the state’s health chief, Cara Christ.
With slogans like “freedom over fear,” Arizona parents are demanding their children have the option of in-person learning. A “REOPEN our SCHOOLS” protest is set for July 30 in Phoenix in support of Ducey’s mandate that in-person classes resume Aug. 17, after the Deer Valley Unified School District delayed their start until Oct. 14.
“All we want is our choices back,” said protest organizer Christina DeRouchey, the mother of four school-age children.
‘RED FOR ED’
Teachers wearing “Red for Ed” t-shirts - the same garb they wore during a successful week-long pay strike two years ago -- are planning a much larger motor march July 22 to circle the state capitol and governor’s office.
The red shirts are a symbol of nationwide strikes by educators over the past few years that some believe may be rekindled this fall.
Arizona teachers are not alone in their protests. Teacher unions across the nation, especially those recently entangled in labor battles, are organizing to become active participants in when and how to re-open schools.
The United Teachers Los Angeles have won an indefinite delay to in-person learning. Others in more conservative states such as Florida are trying to push back classroom start dates and boost funding for personal protective equipment.
“This is a core piece of what our educators come together for, which is to demand that schools are properly funded,” said Joe Thomas, president of the Arizona Education Association (AEA) “Until we can see that, we are not ready to come back to schools.”
Much like they did in 2018, Arizona educators are using social media hashtags and online petitions to demand schools not have funding reduced if students switch to remote learning.
“I’m going to compare it to our walkout in 2018,” said Kelley Fisher, a kindergarten teacher who helped organize the walkout campaign in 2018. “It’s not fair to put any child or any teacher or any family’s life at stake because they have to open a school building.”
Ducey, who has the authority to open or close schools, moved the start of school back until Aug. 17, a delay of one or two weeks for most districts in response to the rise in coronavirus cases. Some have decided to begin the school year with remote learning while others will implement online and in-person instruction.
Ducey said on Thursday he will finalize his decision on the re-opening of schools next week after he speaks with educators around the state.
“Our kids are going to be learning in the fall. We are going to do our best to conduct the most positive educational year that we can,” Ducey said. (Reporting by Brendan O’Brien in Chicago and Andrew Hay in Taos, New Mexico; additional reporting by David Schwartz in Phoenix; Editing by Bill Tarrant and Diane Craft)
Our Standards: The Thomson Reuters Trust Principles.
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6a7ac2f79e4bd2ecddd6e091f60102b2 | https://www.reuters.com/article/health-coronavirus-astrazeneca-eu-idUSL8N2JX4GS | AstraZeneca tells EU initial vaccine deliveries to fall short - Bild | AstraZeneca tells EU initial vaccine deliveries to fall short - Bild
By Reuters Staff1 Min Read
FRANKFURT, Jan 22 (Reuters) - AstraZeneca has informed the European Commission that it will initially not be able to deliver the agreed volumes of its COVID-19 vaccine when it obtains regulatory approval for the bloc, which is expected by end-January, German newspaper Bild reported on Friday, citing company sources.
An AstraZeneca spokesman did not have an immediate comment when contacted by Reuters. (Reporting by Ludwig Burger; editing by Thomas Seythal)
Our Standards: The Thomson Reuters Trust Principles.
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6a64e59bb22bd841bbcbc7986d9c9a83 | https://www.reuters.com/article/health-coronavirus-astrazeneca-russia-tr-idUKKBN28L13L | AstraZeneca to trial COVID-19 vaccine combination with Russian shot by year-end - RDIF | AstraZeneca to trial COVID-19 vaccine combination with Russian shot by year-end - RDIF
By Reuters Staff1 Min Read
Slideshow ( 2 images )
MOSCOW (Reuters) - Britain’s AstraZeneca will start clinical trials combining its own vaccine with Russia’s Sputnik V vaccine candidate by the end of the year, the head of Russia’s RDIF sovereign wealth fund said on Friday.
The official, Kirill Dmitriev, said in a statement that Russia was determined to start joint production of the new combined vaccine with AstraZeneca once it had proven its efficacy in clinical trials.
AstraZeneca announced earlier on Friday it would investigate combining its own experimental vaccine with Sputnik V, a move Russian scientists have suggested could sharply boost efficacy.
Dmitriev said that cooperation between scientists from different countries would be decisive in beating the pandemic.
Reporting by Andrew Osborn; writing by Tom Balmforth; editing by Andrew OsbornOur Standards: The Thomson Reuters Trust Principles.
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4532256b52e6be23d7de79326724ac23 | https://www.reuters.com/article/health-coronavirus-astrazeneca-russia/astrazeneca-to-test-combining-covid-19-vaccine-with-russian-shot-idUKKBN28L10M?edition-redirect=uk | AstraZeneca hitches ride with Russia's Sputnik in vaccine race | AstraZeneca hitches ride with Russia's Sputnik in vaccine race
By Andrew Osborn, Pushkala Aripaka5 Min Read
(Reuters) - AstraZeneca is to start clinical trials to test a combination of its experimental COVID-19 vaccine with Russia’s Sputnik V shot to see if this can boost the efficacy of the British drugmaker’s vaccine, Russia’s sovereign wealth fund said on Friday.
FILE PHOTO: A medical worker demonstrates a vial with Sputnik V (Gam-COVID-Vac) vaccine during the vaccination against the coronavirus disease (COVID-19) at a clinic in Moscow, Russia December 5, 2020. REUTERS/Maxim Shemetov
Trials will start by the end of the year and Russia wants to produce the new vaccine jointly if it is proven to be effective, said the RDIF wealth fund, which has funded Sputnik V.
AstraZeneca said it was considering how it could assess combinations of different vaccines, and would soon begin exploring with Russia’s Gamaleya Institute, which developed Sputnik V, whether two vaccines based on a common-cold virus could be successfully combined.
It did not give further details. However, its Russian arm said it would start to enrol adults aged 18 and older for the trial.
The cooperation between one of Britain’s most valuable listed companies and the state-backed Russian research institute highlights the pressure to develop an effective shot to fight the pandemic, which has killed over 1.5 million people.
The move is likely to be seen in Moscow as a long-awaited vote of confidence by a Western manufacturer in Sputnik V, which the Russian defence ministry alleged on Friday was the target of a foreign-backed smear campaign.
Sputnik’s Russian developers say clinical trials, still under way, have shown it has an efficacy rate of over 90%, higher than that of AstraZeneca’s own vaccine and similar to those of U.S. rivals Pfizer and Moderna.
Related CoverageAstraZeneca to trial COVID-19 vaccine combination with Russian shot by year-end - RDIF
Some Western scientists have raised concerns about the speed at which Russia has worked, giving the regulatory go-ahead for its vaccines and launching large-scale vaccinations before full trials to test Sputnik V’s safety and efficacy have been completed. Russia says the criticism is unfounded.
AstraZeneca, once seen as a frontrunner in the vaccine race, is preparing further tests to confirm whether its shot could be 90% effective, potentially slowing its rollout.
Its average efficacy rate was 70.4% in interim late-stage data - which prompted the developers of Sputnik V to suggest trying to combine the two vaccines.
TWO VACCINES BETTER THAN ONE?
RDIF head Kirill Dmitriev called AstraZeneca’s acceptance of the proposal “an important step towards uniting efforts in the fight against the pandemic”.
Kate Bingham, chair of Britain’s vaccine task force, said this week that the UK would start trials next year using combinations of different kinds of vaccine for the initial and booster vaccinations, in the hope that a “mix-and-match” approach might maximise the immune response.
Both projects are using harmless adenoviruses as vehicles, or vectors, to carry genetic instructions into the body to prompt cells to produce antibodies, an approach that has previously been used in an Ebola vaccine.
One challenge of such a method is that the immune system could attack the vector and, in particular, neutralise the second booster shot that is now an important feature of the leading COVID-19 vaccine candidates.
Using different viral vectors for the two shots is one approach that researchers, including at the Gamaleya Institute, have pursued. Combining vaccines from different developers could be another.
AstraZeneca did not mention immunity against the viral vector as an issue in its statement on Friday.
The firm and its partner Oxford University have used a harmless adenovirus found only in monkeys to ensure that people receiving the shot had not previously been exposed to the vector and developed an immune response against it.
Russian officials have not always been complimentary about the British vaccine.
When AstraZeneca paused a clinical trial in September due to the unexplained illness of a volunteer, Kremlin spokesman Dmitry Peskov told reporters that Sputnik V was more reliable because it was based on an adenovirus found in humans, whereas the British candidate was a “monkey vaccine”.
The new partnership may draw scrutiny after Britain said in July that hackers backed by the Russian state were trying to steal COVID-19 vaccine and treatment research from academic and pharmaceutical institutions around the world. The Kremlin rejected the allegations.
Reporting by Pushkala Aripaka in Bengaluru and Andrew Osborn in Moscow; Additional reporting by Ludwig Burger; Writing by Josephine Mason; editing by Patrick Graham, Mark Potter and Kevin LiffeyOur Standards: The Thomson Reuters Trust Principles.
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5ab7b2ec786a2ed0cf3b37164777b2e3 | https://www.reuters.com/article/health-coronavirus-astrazeneca-study-gro-idUSKBN28O1JS | AstraZeneca UK vaccine trial drops sub-group with children - U.S. trial register | AstraZeneca UK vaccine trial drops sub-group with children - U.S. trial register
By Reuters Staff2 Min Read
FILE PHOTO: Vials with a sticker reading, "COVID-19 / Coronavirus vaccine / Injection only" and a medical syringe are seen in front of a displayed AstraZeneca logo in this illustration taken October 31, 2020. REUTERS/Dado Ruvic/Illustration
(Reuters) -Drugmaker AstraZeneca has removed children from a mid-to-late stage trial of its COVID-19 vaccine in Britain, clinical trial registers in the United States showed on Monday.
The trial of more than 12,000 participants previously included children above the age of five with the consent of their parents. However, trial data under the U.S. National Library of Medicine was updated on Dec. 10 to remove the sub-group including children. (bit.ly/34EOHVj)
Other vaccine developers including Pfizer, Johnson & Johnson and Moderna are testing their hopefuls in children as young as 12 years to study how their vaccines work in a wider age group.
AstraZeneca, which is developing the vaccine along with the University of Oxford, did not immediately respond to a request for comment.
A wide age spectrum in trials can help developers understand how their vaccines work in the larger population, but the U.S. Centers for Disease Control and Prevention said in October that kids may not be recommended for COVID-19 vaccination initially.
AstraZeneca’s vaccine against the novel coronavirus produced a strong immune response in older adults, data published in November showed.
Once the frontrunner, AstraZeneca has now been overtaken by Pfizer and its German partner BioNTech as well as Moderna in the race to develop a COVID-19 vaccine.
Reporting by Pushkala Aripaka in Bengaluru; Editing by Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.
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d1faaa220168332b0bd437e16f11d562 | https://www.reuters.com/article/health-coronavirus-attacks-idUSL5N2L05ZB | India, Mexico top list of coronavirus-related attacks on health workers | India, Mexico top list of coronavirus-related attacks on health workers
By Christine Murray, Thomson Reuters Foundation3 Min Read
MEXICO CITY, March 2 (Thomson Reuters Foundation) - O ne-third out of almost 1,200 attacks on health workers globally last year were related to COVID-19, a coalition of healthcare experts said on Tuesday, with staff being beaten and doused with hot coffee by people fearful of coronavirus infection.
India had the highest number of coronavirus-related attacks, with 128 out of the 412 incidents, carried out mainly by protestors, patients and their relatives, and police, data from the Safeguarding Health in Conflict Coalition (SHCC) showed.
“As we enter the second year of the COVID-19 pandemic, we must learn from the failures of year one and act immediately to safeguard health workers,” said Leonard Rubenstein, founder of the SHCC, made up of 40 health worker and charity groups.
Mexico had the second highest number of threats or attacks - 49 - with nurses told to get off a bus by other passengers, health workers being beaten while tracing contacts of people infected with COVID-19 and a trainee doctor sprayed with bleach.
Mexico and India are among the countries hardest hit by coronavirus pandemic, which has caused 2.5 million deaths worldwide and some 115 million infections, as nations race to procure vaccines and detect new COVID-19 variants.
SHCC said other incidents - presented on an interactive online map - were related to opposition to public health measures, like testing and social distancing, and people not wanting hospitals to be used to treat COVID-19 patients.
Fake news has helped fuel assaults on frontline workers, with some members of the public mistrusting medical treatments or official information about the virus, aid agencies have said.
After reports of attacks last year, the United Nations in Mexico called for respect for health personnel, highlighting the role of women in the sector.
Rubenstein said healthcare inequality had also helped fuel mistrust that can lead to violence, and that any solutions had to work on multiple levels.
“We must address the structural issues, whether its deprivation of the rights of women or inequitable access to healthcare,” he said.
The true number of attacks on health workers in 2020 was likely higher than the total of 1,172 reported, said the groups involved in producing the map, which also included Insecurity Insight, a Geneva-based non-profit.
"Violence is absolutely unacceptable and it hurts everyone," Erica Burton, a senior advisor to the International Council of Nurses, which is a member of SHCC's steering committee, said at a webinar to launch the map. (Reporting by Christine Murray; Editing by Katy Migiro. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers the lives of people around the world who struggle to live freely or fairly. Visit news.trust.org)
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b2c4b6a886fb7d7132eb13c36264fb25 | https://www.reuters.com/article/health-coronavirus-australia-banks-idINKBN25Y08H | Australian banks start asking for loan repayments after six-month virus grace period | Australian banks start asking for loan repayments after six-month virus grace period
By Byron Kaye3 Min Read
SYDNEY (Reuters) - Australia’s banks said on Monday they have started asking customers to pay back loans after giving them a six month hiatus due to the coronavirus, prompting concerns some borrowers will be forced to sell their homes once government support ends.
An Australia Dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/Files
The Australian Banking Association (ABA), a lobby group, said its members had started contacting holders of 260,000 mortgages and 105,000 business loans to check if they could resume payments once deferrals expired in September and October.
Australian lenders have deferred A$274 billion ($200 billion) worth of loans, according to a financial regulator, as the economy has fallen into technical recession and the jobless rate has hit its highest levels since the 1990s.
“Those who can resume repayments at the end of their deferral will be required to do so,” said the ABA in a statement.
Struggling customers may be offered a change to interest-only repayments or a loan extension, while those unable to pay long-term would be offered “tailored assistance”, the association added.
The country’s banking sector is treading a sensitive path as it faces pressure to revert to profit growth while winning back community support after a 2018 public inquiry battered its public standing.
When Australia closed its borders and shut much of its economy in March to slow the virus, banks rushed to offer so-called loan holidays for six months to affected customers. Repayment was paused by another four months on some of those loans, to struggling borrowers.
But the ABA said the grace period had expired for some 450,000 borrowers. Meanwhile, government emergency stimulus payments are set to be pared back from this month.
“We’ve got to have an overarching goal here from the banks that people aren’t forced to foreclose or be chased by debt collectors because of hardship associated with COVID-19,” said Gerard Brody, CEO of the Consumer Action Law Centre.
Peter Strong, CEO of the Council of Small Business Organisations Australia, urged banks to treat business borrowers on a case by case basis given the country’s second most populous state, Victoria, extended a full lockdown over the weekend.
Reporting by Byron Kaye; Editing by Ana Nicolaci da CostaOur Standards: The Thomson Reuters Trust Principles.
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5d04a4dbd6dd9dd8f71183ee37ad0e59 | https://www.reuters.com/article/health-coronavirus-australia/update-2-australia-asks-european-commission-to-review-italys-vaccine-block-idUSL2N2L3058 | Australia asks EU to review block of AstraZeneca vaccine | Australia asks EU to review block of AstraZeneca vaccine
By Colin Packham, Kiyoshi Takenaka, Sabine Siebold4 Min Read
CANBERRA/TOKYO/BRUSSELS (Reuters) - Australia has asked the European Commission to review its decision to block a shipment of AstraZeneca’s COVID-19 vaccine, as countries importing EU-made shots fear a potential impact on supplies.
The EU executive backed Italy’s decision to block a shipment of 250,000 doses of the AstraZeneca vaccine to Australia, European officials said, in the first refusal of an export request since a mechanism to monitor vaccine flows was established in late January.
The move was a reaction to AstraZeneca’s delays in delivering vaccines to the EU. The company has said it can supply only about 40 million doses by the end of this month compared to 90 million foreseen in its contract.
One official said the Anglo-Swedish firm had initially asked Rome to ship even more doses to Australia, but then cut its request to 250,000 after a first refusal by Italy, where some of AstraZeneca’s COVID-19 vaccines are bottled.
“Australia has raised the issue with the European Commission through multiple channels, and in particular we have asked the European Commission to review this decision,” Australian Health Minister Greg Hunt told reporters in Melbourne.
A spokeswoman for the European Commission said on Friday that the EU executive had received no specific request from Australia’s health minister on the vaccine block.
Hunt said Australia, which began its inoculation programme two weeks ago, had already received 300,000 doses of AstraZeneca’s vaccine, which would last until local production of the vaccine ramps up. He added the missing doses would not affect the rollout of Australia’s inoculation programme.
When asked about the EU’s export ban, Japan vaccine minister Taro Kono said: “We are asking the Ministry of Foreign Affairs to thoroughly investigate. We want to work with the Ministry of Foreign Affairs to secure the vaccines bound for Japan.”
AstraZeneca did not reply to a request for comment.
FILE PHOTO: A test tube labelled "vaccine" in front of an AstraZeneca logo in this illustration taken, September 9, 2020. REUTERS/Dado Ruvic/Illustration
EXPORT CONTROLS
Apart from the decision to block the shipment to Australia, the EU has authorised all requests for export since the scheme’s Jan. 30 debut to March 1, which amounted to 174 requests for millions of shots to 29 countries, including Australia, Japan, Britain, the United Arab Emirates and Canada, an EU Commission spokeswoman said.
Almost all vaccines exported from the EU since the end of January are made by Pfizer and BioNTech, the head of the European Commission, Ursula von der Leyen, said last week, with much smaller amounts being exported by Moderna and AstraZeneca.
The EU set up the mechanism to monitor vaccine exports after drugmakers announced delays in their supplies to the 27-nation bloc. It is now planning to extend the scheme until the end of June after it expires on March 31, EU officials told Reuters.
When asked about Italy’s move, French Health Minister Olivier Veran said that Paris could do the same, although at the moment it produces no COVID-19 vaccines.
German Health Minister Jens Spahn said that drug manufacturers must honour vaccine supply contracts to Europe, but said Germany had not yet had any reason to stop shipments of shots produced domestically to other countries.
While seeking the European Commission’s intervention, Australian Prime Minister Scott Morrison said he could understand reasons for Italy’s objection.
“In Italy people are dying at the rate of 300 a day. And so I can certainly understand the high level of anxiety that would exist in Italy and in many countries across Europe,” Morrison told reporters in Sydney.
Italy’s move came just days after Prime Minister Mario Draghi, who took office last month, told fellow EU leaders that the bloc needed to speed up vaccinations and crack down on pharma companies that failed to deliver on promised supplies.
EU countries started inoculations at the end of December, but are moving at a far slower pace than other rich nations, including former member Britain and the United States. Officials blame the slow progress in part on supply problems with manufacturers.
Reporting by Colin Packham in Canberra, Rocky Swift and Kiyoshi Takenaka in Tokyo, Sabine Siebold in Brussels; writing by Colin Packham and Francesco Guarascio; Editing by Jane Wardell, Kenneth Maxwell and Nick MacfieOur Standards: The Thomson Reuters Trust Principles.
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d9b94d57314d0a46a4b3934039af1674 | https://www.reuters.com/article/health-coronavirus-austria-idUSV9N2FR025 | Austria issues travel warning for Tyrol province over COVID-19 variant | Austria issues travel warning for Tyrol province over COVID-19 variant
By Reuters Staff1 Min Read
VIENNA, Feb 8 (Reuters) - Austria is warning against non-essential travel to its Alpine province of Tyrol because of an outbreak of the so-called South African variant of the coronavirus there, the government said in a statement on Monday.
“The government is warning against travel to Tyrol in order to prevent the South African variant from spreading and the government asks all citizens to restrict journeys to Tyrol to those that are absolutely necessary,” the statement quoted Chancellor Sebastian Kurz as saying. (Reporting by Francois Murphy; Editing by Jon Boyle)
Our Standards: The Thomson Reuters Trust Principles.
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c586134744947889db9104528ee22259 | https://www.cnbc.com/2018/05/11/us-stingier-with-child-care-maternity-leave-than-rest-of-the-world.html | The US is stingier with child care and maternity leave than the rest of the world | The US is stingier with child care and maternity leave than the rest of the world
Fiona Goodall | Getty Images
In most American families led by couples, both parents are in the workforce. At the same time, nearly 1 in 4 U.S. children are being raised by single moms.
Yet child care is generally unaffordable and paid leave is not available to most U.S. parents.
Around the world, however, most employed women automatically get paid maternity leave. And in most wealthy countries, they also have access to affordable child care.
More from The Conversation:Why are some E. coli deadly while others live peacefully within our bodies?Women earn less after they have kids, despite strong credentialsWhy child care costs more than college tuition – and how to make it more affordable
These holes in the national safety net are a problem for many reasons, including one I've been researching with my colleagues for years: Paid parental leave and child care help women stay in the workforce and earn higher wages over time. This lack of parental leave and child care may explain why the U.S. is no longer a leader in women's workforce participation.
The U.S. is one of a handful of countries worldwide that does not mandate paid maternity leave. The other four are the low-income nations of Lesotho, Liberia, Papua New Guinea and Swaziland.
Paid leave, which typically lasts at least 14 weeks, needs to be designed thoughtfully. When women can and do take two or even three years off after having a baby, as they may in Hungary, long leaves can limit mothers' work experience and lead to discrimination.
The 1993 Family and Medical Leave Act did mandate 12 weeks of unpaid job protected leave for some American workers. Yet most families can't forgo the income that moms bring home.
Denmark offers what I think is a strong example. There, moms get almost 18 weeks of paid maternity leave and dads get two weeks of paid paternity leave. On top of that, couples get up to a total 32 weeks of parental leave, which parents can split. This policy grants parents both the time and resources necessary to care for children, without "mommy tracking" mothers.
In many wealthy countries, child care and preschool are considered a mainstay of the educational system. But in the U.S., only about half of all children between the ages of 3 and 6 are getting publicly supported child care of any kind, including kindergarten, versus 99 percent of kids that age in France.
Interestingly, high-quality early childhood education programs are associated with many excellent outcomes for children from lower-income families: higher graduation rates, along with lower rates of teen pregnancy and juvenile crime.
In other words, when governments invest in child care and maternity leave, it fosters a more productive, healthy and creative workforce.
Commentary by Joya Misra, a Professor of Sociology & Public Policy at the University of Massachusetts Amherst. She is also a contributor at The Conversation, an independent source of news and views from the academic and research community.
For more insight from CNBC contributors, follow @CNBCopinion on Twitter.
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1b410d9a522a4d8af04fedc4ebfd3b6d | https://www.cnbc.com/2018/05/11/wall-street-still-loves-nvidia-despite-chipmakers-prediction-of-plunging-crypto-mining-sales.html | Wall Street still loves Nvidia despite chipmaker’s prediction of plunging cryptomining sales | Wall Street still loves Nvidia despite chipmaker’s prediction of plunging cryptomining sales
Jen-Hsun Huang, president and chief executive officer of Nvidia Corp., speaks during an event at the 2018 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Sunday, Jan. 7, 2018.David Paul Morris | Bloomberg | Getty Images
Analysts are optimistic over Nvidia's growth opportunities even as a key market falters.
The chipmaker reported better-than-expected fiscal first-quarter earnings and guidance Thursday. But the company said on the earnings conference call its second-quarter cryptocurrency-mining chip sales will likely fall by two-thirds quarter over quarter.
Nvidia's stock price fell 2.2 percent Friday.
Goldman Sachs reiterated its buy rating for Nvidia's stock, saying its weak digital currency business guidance is a positive and the bad news is now out there.
"Crypto is expected to decline significantly in [the second quarter]. … Management is guiding crypto revenue down 66% [quarter-over-quarter] based on feedback it has received from its enterprise-scale mining customers and conservatism given recent ETH weakness, in our view," analyst Toshiya Hari wrote in a note to clients Friday. "With crypto now de-risked, in our view, and the new product launch in Gaming ahead of us, we see positive risk-reward and would thus recommend investors to Buy the stock."
The analyst raised his price target for Nvidia to $310 from $275, representing 19 percent upside to Thursday's close.
Cryptocurrency miners use graphics cards based on AMD's and Nvidia's chips to "mine" new coins, which can then be sold or held for future appreciation. In April, China-based Bitmain announced its specialized digital currency mining system for ethereum, which analysts predict could hurt demand for graphics cards.
The price of ethereum is down roughly 8 percent this year through Friday morning, according to Coinbase. The cryptocurrency is still up more than 600 percent over the past 12 months.
One Wall Street analyst told his clients to focus on Nvidia's leadership in the artificial intelligence market.
"NVDA's leadership in AI remains the most critical component of stock sentiment/valuation," Bank of America Merrill Lynch analyst Vivek Arya said Thursday in a note entitled "Best-in-class Growth + Pipeline, ignore segment noise." "NVDA remains the unrivaled leader in AI training, and is now gaining traction in the emerging inference TAM (5-10% of data center sales) as evidenced by the QoQ doubling in inference shipments to cloud customers in Q1."
Vivek raised his price target for Nvidia shares to $340 from $300 and reiterated his buy rating for the company.
J.P. Morgan is bullish on Nvidia's gaming business, citing the recent launch of new popular games.
"We believe Gaming demand remains strong in the current quarter on continued blockbuster gaming titles/e-sports strength," analyst Harlan Sur said in a note to clients Friday. "Demand continues to remain strong for NVIDIA's GeForce GTX 1080Ti product and a strong line-up of flagship games that have recently been launched (e.g., Fortnite, PUBG, Far Cry 5, etc.), coupled with NVIDIA successfully replenishing the channel after supply tightness."
Nvidia shares are up 34 percent so far this year through Thursday versus the S&P 500's 2 percent return.
— CNBC's Michael Bloom contributed to this story.
Disclaimer
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1d1548975eedf9dda99805fe9f976aff | https://www.cnbc.com/2018/05/11/watch-pompeo-and-south-korean-foreign-minister-hold-press-conference-ahead-of-summit.html | Watch: Pompeo and South Korean foreign minister hold press conference ahead of summit | Watch: Pompeo and South Korean foreign minister hold press conference ahead of summit
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Secretary of State Mike Pompeo is set to hold a joint press conference with South Korean foreign minister Kang Kyung-wha at 3 p.m. ET on Friday. This is the first time the two officials will meet, according to Reuters.
Pompeo and Kang are expected to discuss President Donald Trump's upcoming summit with South Korean President Moon Jae-in. Trump and Moon are scheduled to meet later this month ahead of Trump's much-anticipated meeting with North Korean leader Kim Jong-un, which is set for June 12.
Trump announced on Twitter that his meeting with Kim will take place in Singapore.
Trump tweet
Pompeo recently returned to the United States from North Korea with three freed American prisoners, who were released before Trump and Kim's meeting as a possible sign of good will.
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c71548f0fc8874fa6d9449d362df9987 | https://www.cnbc.com/2018/05/11/we-dont-take-cash-is-this-the-future-of-money.html | ‘We don’t take cash’: Is this the future of money? | ‘We don’t take cash’: Is this the future of money?
A customer signs for a purchase with a chip credit card at a Wal-Mart location in Burbank, California.Patrick T. Fallon | Bloomberg | Getty Images
The Watch House, a stone's throw from Tower Bridge in London, plays the part of the hipster café very well. Sourdough bread is stacked on shelves, baskets brim with oranges and avocados, and tables are abuzz with young professionals on laptops and a smattering of foreign visitors who have strayed off the main tourist trail. So far, so predictable. But the Watch House's modernity has gone a step further. Since the start of the year, this has been a cashless café.
Manager Emma Burgess, who heads a team of waiters armed with iPads, says it was a smooth transition. "Eighty per cent of our customers were already paying with cards, so it was a logical next step." Banning cash not only chimes with the feel of the place, it has saved time and money — a 45-minute bank run two or three times a week. Crucially, it has also made the Watch House safer. "Late last year," says Burgess, "we had four break-ins within two months, where thieves targeted our cash takings. That was the driving force for this: security."
And yet, for all the logic of the café's decision, the set-up is pretty unusual. Defying predictions that cash is doomed, the volume of notes and coins in the world is actually on the increase. Economists suspect a combination of factors: the low interest rates available on bank deposits, a post-crisis distrust of financial institutions and a growing informal economy.
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Today there are 500 billion banknotes and trillions of coins in circulation. According to a recent report from G4S, which manages cash distribution systems, physical money now accounts for 9.6 per cent of global gross domestic product, up from 8.1 per cent in 2011. A trendy London café is one thing. But a completely cashless economy is hard to imagine any time soon.
VIDEO3:3403:34Bitcoin, digital currencies and block chain are one of the biggest opportunities of our generation: Brian KellyPower Lunch
In an age defined by technological advance, that is odd. It feels downright primitive that most of us still walk about with coins jangling in our pockets, much as ancient Anatolians did nearly three millennia ago when minted coins first appeared. We have barely advanced since cowry shells were the currency of choice in ancient China.
Of course, there has been some extreme innovation, with bitcoin and other cryptocurrencies attracting a cult following. But even in the realm of mainstream electronic money, some of us are spooked by concerns about data security, technological reliability or the risks of unwitting overspending.
And yet, in many ways, credit and debit cards, payment apps and digital wallets are so clearly superior to cash. They are germ-free. They are quick and convenient. And they stymie the kind of crime — from tax evasion to terrorism — that can be made much easier with briefcases of used notes.
For now, the Watch House's cashless initiative may still be a rarity. But in hot spots around the world, the modernisers are starting to win the argument that digital payment methods should trump old-fashioned notes and coins.
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Sweden heads the vanguard. On a sunny weekday in April, the fruit and flower stalls of Stockholm's Hotorget market were doing brisk business. But even here among traders who have tended to fly below the radar of tax collectors, not much cash was changing hands. Instead, many of the bouquets were being bought via card machines or Swish, a popular app that allows you to make payments with a mobile phone number or QR code.
At the last count, only 19 per cent of Sweden's payments were made using cash, compared with a European average of nearly 80 per cent. This total could go to zero within as little as five years, according to research by Stockholm's KTH Royal Institute of Technology. The Riksbank, Sweden's central bank, is a little more cautious on timing but still believes a cashless society is imaginable in little more than a decade. "If you extrapolate current trends," says deputy governor Cecilia Skingsley, "the last note will have been handed back to the Riksbank by 2030."
The foundations of this quasi-cashless economy were laid more than 20 years ago when Sweden's big banks were handed responsibility for the country's cash and payments infrastructure. Today they jointly operate the ATM network and the Swish app. The shift away from cash has been great for tax receipts, says deputy finance minister Per Bolund.
For example, VAT generated SKr427bn (£36bn)(US $ 48,657,600,000.00) last year, up nearly 30 per cent in five years. "The payments are increasing very much — part of that is due to the digitalised economy," he says. "It's [getting] harder to hide cash under the counter."
And, of course, it is convenient for consumers, with little sign — in Stockholm at least — that this is a young person's phenomenon. Shopper Kerstin Warnquist, 71, says it is a month since she last bought anything with notes and coins. "I carry very little cash. I use cards and I use Swish. It's easy."
VIDEO2:5902:59We will start using digital currencies sooner rather than later: Bank of Canada governorThe CNBC Conversation
Even some potential victims of modernisation have been borne in mind. Mikael Karlsson, a former driver and football coach, displays a fan of glossy homeless charity magazines and sports an ID badge with a QR code. Anyone wanting to buy a copy just has to scan the code with their app. "When I started, I was taking much more cash," he says. "But nowadays half my sales are with Swish."
Payments are transferred to the charity's bank account. The only snag is that vendors have to drop by the office to convert their takings to cash — and in a virtually cashless country such as Sweden, that is unhelpful. "Sometimes, like at 7-Eleven, when homeless people have cash, they can't buy cigarettes there, so it's more inconvenient for them," explains Karlsson.
Banks themselves have become largely cashless. In this nation of nearly 10 million people, the big three have only 25 branches nationwide that deal with cash — just 5 per cent of their total branch network.
Part of the reason is to decrease the risk of robbery. But the shift away from notes and coins may have made certain individuals more prone to attack — particularly vulnerable segments of society, such as the elderly, disabled and homeless, who are more likely to still depend on physical money.
Some young people also feel at risk. Several teenagers cited repeated muggings as a reason they no longer carry cash. Robberies involving individuals in Sweden remain low compared with many countries. But according to Bra, Sweden's crime statistics bureau, muggings doubled between 2014 and 2016, from 0.7 per cent of the population to 1.4 per cent, just as the cash held by shops and banks was declining. For many, this just reinforces the argument for a totally cashless society. Mustafa, a taxi driver, says: "We don't like cash. Cards and apps are much safer."
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Across the world, a crop of other countries and companies are trying to loosen our reliance on cash. In South Korea, a close second to Sweden in terms of the growing dominance of electronic money, the central bank has set a 2020 target to phase out coins. There have been more limited withdrawals of small denominations in Ireland and parts of northern Europe.
A UK government consultation has questioned whether 1p and 2p coins and the £50 note are "efficient or cost effective". In China, tech companies have been all-important in converting the younger, urban population to smartphone money, while governments in other parts of Asia and in Africa have teamed up with companies to help people gain access to finance.
One of the first big steps away from cash in the eurozone was prompted by terrorism. At 9.40pm on November 13 2015, three masked men entered the Bataclan theatre in Paris and killed 89 concertgoers. Earlier, Islamist terrorists had slaughtered dozens at a football stadium and on the streets. It was the deadliest day for France since the second world war.
The event triggered a thoroughly documented sequence of responses — a manhunt, a three-month state of emergency and retributive air strikes on the Isis hotbed of Raqqa in Syria. Less well known is that the tragedy led to the end of the €500 note.
Peter Sands, a former banker turned Harvard academic, has studied the role that large denomination notes play in organised crime and in financing terrorism. A month after the attacks, he was summoned to Paris to meet finance minister Michel Sapin, who wanted to know if abandoning the €500 note would help to combat terrorism.
"Drug trafficking is the biggest driver of illegal financial flows and a major source of funding for terrorism," Sands explains. "And drug trafficking always ends up in cash at some point in the chain." The bigger the notes, the less likely you are to get caught carrying huge suitcases of money. "Large denomination notes are completely unnecessary for normal modern life," says Sands. Eliminating them should be painless.
By the following February, Sapin had persuaded Europe's Council of Ministers to call for the withdrawal of €500 banknotes. Germany, in particular, needed some convincing — the large denomination note was a symbol of pride. But within a few months, the European Central Bank decided to phase out the notes, as it believed they were being used predominantly for crime and tax evasion.
Was this the beginning of the end for cash in the eurozone? "Getting rid of cash as a whole is socio-politically a far bigger deal," says Sands. "But if you start by taking out the bigger value notes, you can work your way down."
Radical measures in emerging economies have shown how complex it is to go cashless. In November 2016, with virtually no notice, India's prime minister Narendra Modi axed India's two most popular notes — the R500 (£5.50) and R1,000 — with a pledge to clean up crime, boost tax receipts and push consumers to use more modern payment methods.
The exercise succeeded in boosting personal income tax collections by more than 40 per cent but the possible side effects have been harsh. By mid-2017, India's economic growth had fallen to its lowest level for three years. The hoped-for nudge towards electronic payments has been disappointing too. The use of debit cards and smartphone-based digital wallets surged following the initiative but quickly fell as cash supplies crept up again.
One big problem was the absence of the necessary infrastructure in rural areas, undermining the agenda to bring more sophisticated finance to the masses. Critics say the whole process was poorly thought through. "It was typical of Modi," says one senior banker who has worked in India for many years. "It was a gesture action rather than a concerted strategy."
Four years ago in Nigeria, Mastercard joined forces with the government to add a payment facility to an ambitious new identity card, potentially bringing 120 million people in Africa's most populous nation into the formal economy. The initiative was hailed as "digitalisation, democratisation and financial inclusion all rolled into one". But the launch was overshadowed by bitter protests.
The Civil Rights Congress said the cards amounted to the "stamped ownership of a Nigerian by an American company" and compared Mastercard's branding with "the logo pasted on the bodies of African slaves transported across the Atlantic". Recovering from that kind of public relations problem has been hard. To date, only 1.5 million cards have been issued, with reports suggesting a further 28.5 million applications are stuck in the system.
Even in Kenya, where the ubiquitous M-Pesa mobile-phone-based money transfer service has fuelled economic growth and curbed poverty, there is a hitch: you will need to convert your funds into a cash payout at a local shop.
There have been some global success stories, such as China's rapid roll-out of digital payments. Online giants Alibaba and Tencent have come to dominate the space. More than half of the Chinese population say they now use cashless payments to make more than 80 per cent of purchases. "Historically, China's big state-owned banks were not really focused on retail customers," says James Lloyd, who heads the Asia-Pacific fintech team at consultancy EY. "So there was huge consumer appeal when the likes of Alibaba and Tencent launched high-tech services that were free or low-cost. By the time the banks knew what was happening, even their improved customer offerings appeared quaint."
Today even beggars and buskers in the country are using QR codes to bring in money. A recent G4S report concluded: "China is getting rid of all cash and is quickly becoming a cashless society."
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Despite these enthusiastic adopters of electronic payments, cash is very much alive and well in many parts of the world. "Cash is vital in supporting financial inclusion," said Victoria Cleland, the Bank of England's chief cashier, in a recent speech.
Some are even more attached to it than they used to be. In the UK, the number who rely almost entirely on cash has jumped by 500,000 to 2.7 million over the past two years, according to analysis by Payments UK and the Bank of England. The volume in the economy has also increased, with a record level of more than £73bn now in circulation, according to the BoE.
And yet, the value of payments in cash has simultaneously declined by more than 10 per cent a year. Electronic payments have surged, thanks largely to the ease of contactless-card technology, and now account for close to 60 per cent of the total. (Concerns about thieves with handheld contactless card readers zapping people's pockets have abated — enterprising retailers have created metal-lined wallets to eliminate the risk.)
The picture in the US is similarly paradoxical. Electronic payments are close to 70 per cent and yet cash in the economy relative to GDP has surged nearly 50 per cent in a decade. Why?
Crime and tax evasion are often cited as explanations. $100 bills account for nearly 80 per cent of all US cash — and more than two-thirds of these notes are abroad. Harvard economist Kenneth Rogoff, in his 2016 book The Curse of Cash, says much of that money will be supporting crime and the grey economy. "Why not just get rid of paper currency?" he asks. But there may be other reasons why physical money is on the increase. One is that more people are hoarding cash, following the unsettling financial crisis. Given ultra-low interest rates, banking it would yield little benefit.
Sweden provides a rare case of a country where the growth of electronic payments had led to less cash in circulation. But even there, a fightback is looming. Bjorn Eriksson is an unlikely champion of the cash economy. As a former head of Interpol, you might expect him to favour a world of traceable electronic money.
But Eriksson, who heads campaign group Kontantupproret (Cash Rebellion), believes the rush towards a cashless society is becoming political. "The people are getting rather angry. The establishment isn't listening," he says. He believes it could contribute to a bloody nose for the coalition government in September's national elections.
That might be overstating it — there has certainly been little sign of rebellion on the streets of Stockholm. Eriksson also has a dog in the race himself. He also chairs the trade association for the Swedish security industry, which depends on transporting cash for much of its work. Nonetheless, he is eloquent on the dangers of ditching cash and the associated political risks that many prefer not to dwell on.
"If we move to a wholly cashless society," he says, "and something disturbs this digitalised system, what happens?" That could be a simple matter of power lines going down, machines malfunctioning or banks mismanaging their IT systems, as has happened recently at the UK's TSB bank. But Eriksson's chief concern is state-sponsored cyber warfare. Across much of the world, cyber warfare is seen as the biggest risk to business. Moscow's annexation of Crimea four years ago and compelling evidence of Russian hackers at work ahead of the US election and the Brexit vote has clearly left Sweden feeling jittery about the superpower looming barely 200 miles off its eastern border.
In February, Stefan Ingves, governor of the Riksbank, urged the government to consider the vulnerability of the payments network in a case of "serious crisis or war". His deputy Cecilia Skingsley speaks of the "30-year sweetspot . . . after the cold war", adding enigmatically: "We relaxed a bit. Now we need to think about how we handle different situations." Eriksson is more direct. "If Putin invades Gotland [the Swedish island midway between Stockholm and Kaliningrad], he could just switch off the payments network. In that kind of situation, you need cash and an analogue system as an emergency generator."
Cyber threats don't end here. The financial sector has looked on with a mixture of schadenfreude and anxiety as the world slammed Facebook over its data breaches involving Cambridge Analytica. Schadenfreude because banks — seen as whipping boys since the 2008 financial crisis — were delighted to see a tech giant brought down to earth. Anxiety because they know that they, too, are vulnerable to data foul-ups — potentially far more damaging ones.
The data trail left by those who prefer electronic payments is rich compared with the invisible trace of cash. Breaches will occur, whether deliberate or accidental. In 2014, JPMorgan Chase, one of the world's biggest banks, was hacked, compromising the data of 76 million households and seven million small businesses. Two years later, hackers targeted UniCredit, Italy's biggest bank, which had an impact on 400,000 clients.
In Europe, some finance companies are concerned about directives over sharing data with new fintech intermediaries. "It's madness," says one bank chief executive. "We're being encouraged to open up our data without knowing that the end guardian is going to keep it safe."
Square, the payments company set up by Twitter founder Jack Dorsey, says that, like any financial group, its model requires customers to trust it. "We are very careful about what we share," says Sarah Friar, chief financial officer. "One wrong step and we'd be out of business. A payments company would just not survive."
Within legal parameters, though, any company worth its salt in the financial world will be vying to make the most of its data. There are some exceptions. Germany has a particularly acute sensitivity to data risk and a deep distrust of borrowing money. Together, such factors may have contributed to the stubborn dominance of cash in one of the world's most advanced economies.
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On my trip to Sweden, it was refreshing to walk straight past the (deserted) currency exchange booths and pay for everything by card. Only on my way home did I encounter a snag — not as the result of a cyber attack or a data breach but rather a broken card machine at the departure gate café. "Sorry, cash only," said the apologetic manager. A long queue of cashless flyers went hungry that evening.
Sweden's banks are defensive when asked if they are deliberately forcing cash out of the economy. "A cashless society can't be driven by banks," says Casper von Koskull, chief executive of Nordea, the country's biggest bank. "All the elements of society need to be in sync." But it is a quiet suspicion among the Swedes I meet. Certainly there is a relatively sparse ATM network (one machine for about every 3,500 Swedes compared with roughly one for every 1,000 Britons and an ATM for approximately every 650 Americans).
The simple truth is that cash costs the banks more. A recent Morgan Stanley research report highlighted the $5bn a year bill that Bank of America, one of the world's biggest retail banks, racks up processing cash and cheque transactions and servicing ATMs. That is nearly 10 per cent of its cost base.
In contrast, electronic payments offer two ways for a financial services company to make money. Even if data prove tricky to commercialise, there are fees to be earned on every transaction — either from the cardholder, the retailer or both. The British Retail Consortium says credit card fees amount to 0.49 per cent of sales, more than triple the 0.15 per cent figure for processing a cash purchase.
This is only a superficial analysis. According to data researcher IHL, the true cost of a cash transaction to a retailer could be 5 to 15 per cent of sales. In addition to basic bank fees, it factored in the time taken to open and close cash drawers, change money on request, count cash, make deposits and pay cash-transit companies. "The cost of cash to society is under-appreciated," says Ann Cairns, who heads international operations for Mastercard. "A country, normally via its central bank, is paying up to 1.5 per cent of GDP to count it, distribute it and print it."
On the other side of the scales, non-cash payments also benefit the seller. John Jacobs, a Staffordshire woodcarver, was previously a wholly cash business. As a client of Square for the past year, he has seen his sales jump 45 per cent and now makes 70 per cent of his income through electronic payments. "I push people to pay by card now because all the local bank branches have gone and it's hard to deposit cash," says Jacobs. "It's enabled me to make a lot more money. You're kind of crazy if you don't use it."
Maximising financial access is even more important in emerging markets. For all the controversy surrounding its Nigerian ID card project, Mastercard has pressed ahead with similar schemes in South Africa and with Syrian refugees in Lebanon and Jordan.
"Being included in the financial system is the road to inclusive growth," says Cairns. "When a government or an NGO or an employer pays you via your mobile phone rather than in cash, that is a much safer and more transparent way of sending money." If this looks like altruism, it is not. "Even if it's not a major [profit] item now," she says, "it makes a lot of business sense as a 10-year strategy."
Every country aspires to economic growth, of course. And for financial services companies, the greater the growth, the greater their opportunity to make money as you spend it. But is the push into electronic payments encouraging us to overspend?
Certainly there has long been evidence to suggest we spend more when we pay electronically, particularly with a credit card that defers payment, rather than with cash. A 30-year-old experiment by Richard A Feinberg, then an associate professor at Purdue University, found there was an increase of as much as 240 per cent in the amount participants were willing to pay for something if they were using a credit card instead of cash.
Over the past couple of years, fast-food chain McDonald's has begun installing rows of touchscreens in its restaurants, encouraging customers to place and pay for their orders electronically. The company is coy about the outcome but early signs suggest it could be dramatic. In 2016, Steve Easterbrook, its chief executive, spoke about a "good pick-up" in sales thanks to the new devices. At one outlet, the company found the average order via a screen was 30 per cent higher than one placed face-to-face.
Buying an extra side order of fries won't break the bank. But take a look at the countries with the biggest proportion of electronic payments and compare it with those that have high levels of consumer debt, and you'll spot a worrying correlation.
To an extent that is natural — for decades, until the advent of smartphone apps, much of the world's non-cash spending was via credit card. But as the ultra-low interest rates of the developed world begin to rise, these fragile piles of debt, which electronic payments are compounding, could start to crumble.
Leaving aside concerns about data-security and marginalised communities, this risk should send warning signals to any country — from the almost cashless Sweden to the most cash-dependent emerging market. The road to electronic money is only navigable with extreme care.
Back at the Watch House café in London, I go to pay my bill but my neighbour beats me to it, getting up from his seat, burrowing into his pocket and pulling out the right money to pay the £3.60 he owes. "I'm sorry, we don't take cash," says the manager. "Well, that's how I'm paying," he says, defiantly. "I don't use cards." And he strides from the café without a backward glance.
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8d33668b7e2c7767e6aafb0ce669edf5 | https://www.cnbc.com/2018/05/11/what-the-new-tax-law-means-for-your-charitable-giving.html | What the new tax law means for your charitable giving | What the new tax law means for your charitable giving
VIDEO2:2302:23Charitable givingOn the Money
Doing good is its own reward. Reaping the tax benefits is a nice perk.
While taxes might not have been at the forefront when providing aid to others, the tax deduction for charitable contributions has typically helped shave money off your tax bill if you itemize instead of taking the standard deduction.
But under the new Tax Cuts and Jobs Act, that threshold is tougher to clear. Although the deduction for donations is unchanged, you'll still need to itemize to claim it, and that's a much higher bar with the nearly doubled standard deduction.
"With a higher standard deduction, there will be less people who benefit from donating to charity," said Eric Bronnenkant, a certified financial planner and CPA and the Head of Tax at online financial advisor Betterment.
(Under the legislation, an individual would need total itemized deductions to exceed $12,000, the bill's new standard deduction for individual taxpayers, up from the current $6,350. Married couples would need deductions exceeding $24,000, up from a current $12,700.)
How well do you know taxes? Take our quiz
A new congressional report estimates that 18 million households will itemize deductions this year, down from 46.5 million last year.
"Without itemized deductions, most people will lose all tax benefits associated with charitable giving," said Kimberly Dula, a partner at the accounting firm Friedman LLP in Marlton, New Jersey.
For charitable donors aren't ready to let go of that tax break, there are still several ways around the new rules.
With a higher standard deduction, there will be less people who benefit from donating to charity.Eric Bronnenkanthead of tax at Betterment
For starters, try a strategy called "bunching." Rather than giving every year, "give a greater amount every other year," said Amy O'Loughlin, a director in CBIZ MHM's tax and business services division in Phoenix, Arizona.
For example, instead of giving $5,000 to charity annually, accelerate the gift by giving $10,000 every two years. This way, you can get your itemized deductions over the limit one year and take the standard deduction the next.
Similarly, a donor-advised fund lets you make a charitable contribution and receive an immediate tax break for the full donation, and then recommend grants from the fund to your favorite charities over time.
"You can put in $10,000 and get a one-time tax deduction and spread your donations out to the charities you support," O'Loughlin said.
Retirees, age 70½ or older, might also consider transferring money from their IRA to a qualifying charity. Such qualified charitable distributions can be a tax-efficient way of meeting your required minimum distribution — and you don't need to itemize your deductions to benefit, according to Bronnenkant.
There are a few other tricks, too, like avoiding the capital gains tax on investments by giving stocks or other appreciated assets, such as artwork and antiques, which have grown in value.
"A standard practice on how to leverage charitable donations is to donate appreciated assets," said Bronnenkant.
High-income earners, in particular, should consider a noncash donation specifically because of the tax advantages, he said.
And of course, "you can always give to charities without getting the tax break," O'Loughlin added. Regardless, "Americans are very generous. I think they will always give to charity."
"On the Money" airs on CNBC Saturdays at 5:30 a.m. ET. Check listings for air times in local markets.
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60909265fdf03a023457897a7b913a9d | https://www.cnbc.com/2018/05/11/wynn-resorts-proxy-fight-heads-to-shareholder-vote-next-week.html | Wynn Resorts proxy fight involving its largest investor heads to a shareholder vote next week | Wynn Resorts proxy fight involving its largest investor heads to a shareholder vote next week
An American flag flies outside the Wynn Boston Harbor Resort Casino during construction in Everett, Massachusetts, U.S., on Wednesday, Feb. 7, 2018.Scott Eisen | Bloomberg | Getty Images
As Wynn Resorts remains under a regulatory cloud and struggles to get back on track, another challenge has emerged: a bitter proxy contest from its largest shareholder and a "campaign for change."
Elaine Wynn, the ex-wife of Steve Wynn and now largest shareholder of Wynn Resorts, is behind a proxy battle that is set to come to a head at the company's upcoming annual meeting May 16.
She is seeking to remove legacy board member John J. Hagenbuch, whom she has referred to as a "close friend" of her ex-husband Steve Wynn, the company's former chairman and CEO who resigned earlier this year following sexual misconduct allegations. "No one with close personal ties to Mr. Wynn should serve on this committee," she said in a recent filing.
After exiting in February, Steve Wynn unloaded his 12 percent stake in the company in March for $2.1 billion. He has denied the sexual misconduct allegations, which were first reported in January by The Wall Street Journal.
Elaine Wynn's campaign is part of a broader plan, which she's titled "Restore Wynn," to force change on the company she co-founded and served as a director until April 2015. She believes the company long controlled by her ex-husband "needs and deserves a new board that is truly independent and wholeheartedly committed to the company's long-term success."
"Elaine's campaign goes way, way back — and the sexual harassment allegation probably gives her another platform to maybe get some of her previous grievances out," said Tuna Amobi, an analyst at CFRA Research.
Still, Elaine Wynn has insisted she's not seeking a seat on the board for herself or anyone that will represent her.
Elaine Wynn, ex-wife of casino mogul Steve Wynn.Steve Marcus | Reuters
Also, she's asked that shareholders vote against approving the company's executive compensation plan — the so-called say on pay. Three independent proxy advisory firms — Institutional Shareholder Services, Egan-Jones Proxy Services and Glass Lewis & Co. — have come out in support of her position on rejecting the say-on-pay proposal and to withhold votes from Hagenbuch.
Hagenbuch, a six-year board member, is chairman of M&H Realty Partners and WestLand Capital Partners, investment firms he co-founded. He served on the three-member special committee of the Wynn Resorts board investigating the allegations against Steve Wynn.
Hagenbuch didn't respond to requests for comment for this story.
Wynn Resorts defends Hagenbuch, stating in recent documents in connection with the proxy contest that "Jay has the experience to effectively identify and manage Wynn's risk exposures and attendant vulnerabilities."
In a letter to shareholders Thursday, Wynn Resorts' board said Elaine Wynn's "campaign has been entirely disingenuous and is only serving to undercut the stability and progress we are making to transform Wynn Resorts." Also, it said, "her goal to 'Restore Wynn' reflects an insensitivity to the needs of the company at this important juncture."
Added Wynn Resorts' letter, "Both ISS and Glass Lewis have focused on the point that Elaine Wynn was a member of the board from 2002 to 2015, and that she herself bears some responsibility for some of the past vestiges for which she now criticizes the board."
Elaine Wynn, who holds a more than 9.2 percent stake in Wynn Resorts, sees the vote to oust Hagenbuch from the board as a referendum on the company's other legacy directors who oversaw the investigation into her ex-husband as well as the company's response to the allegations. She reportedly learned about an alleged sexual misconduct incident involving her ex-husband in 2009 and reportedly told the company's general counsel.
"Though the board acted swiftly when faced with a crisis, the legacy directors apparently failed to change the batteries of the smoke detectors well before the fire broke out," said ISS, the proxy advisory firm, in its recommendation and analysis released last week.
ISS also is critical of the legacy directors for their handling of the allegations and the length of time it took to get diversity on the Wynn Resorts board. In April, the company named three women as new independent board members and expanded its board.
"When the legacy directors decided to remove Elaine Wynn from the board in 2015 (thus eliminating all gender diversity from the board), it took them nearly twice as long to appoint a single woman director, Patricia Mulroy, as it took the board to appoint Betsy Atkins, Dee Dee Myers, and Wendy Webb last month," ISS said in its analysis.
CFRA's Amobi calls the addition of the three female directors "a significant step to kind of ease some of those concerns in terms of the overall [corporate] governance situation."
Shares of Wynn Resorts were down nearly 3 percent on Friday but the stock remains up 16 percent so far this year, easily outperforming the S&P 500 index.
Morningstar analyst Dan Wasiolek said the campaign by Elaine Wynn can be viewed as a distraction, and there are others, too.
"Obviously, the company has had to deal with a lot — dealing with gaming regulators, updating its board of directors and continuing to review that process," said Wasiolek. "But the company seems to be executing within that environment."
The proxy fight by Elaine Wynn comes as there's still uncertainty about Wynn Resorts' existing gaming licenses and its $2.5 billion casino resort project in Massachusetts. On Monday, the Massachusetts Gaming Commission agreed to take Steve Wynn's name off the gaming license for Wynn Resorts' planned casino in Boston, but it may not be enough to close the investigation.
Wynn Resorts' new CEO, Matt Maddox, last month sought to distance the company from Steve Wynn by telling the commission that management had taken several steps, including corporate culture and dropping the "Wynn" name from the planned Wynn Boston Harbor project, which is scheduled to open in June 2019.
"It seems it's not just about Steve Wynn, but it's also about what was or what wasn't presented to the gaming regulators at the time they were issuing the licenses," said Morningstar's Wasiolek.
The Massachusetts gaming regulator told CNBC on Wednesday its "investigation is active and ongoing." And Nevada's casino regulator said Thursday there remains "an active investigation" into the Las Vegas-based company.
"The company continues to fully cooperate with the Nevada and Massachusetts investigations," said Michael Weaver, a Wynn Resorts spokesman.
One risk is regulators could force more changes on the board and the leadership team who were on the gaming application.
Ultimately, some analysts believe Wynn Resorts will be forced to sell or break up the company.
Jefferies analyst David Katz said the company today lacks its "chief visionary and [its] chief diplomat" — Steve Wynn — and over time "won't be able to grow in the same ways and therefore capture the same multiple that it has historically. And therefore, they're going to conclude that the better option is to sell the company, either in whole or in parts, eventually."
The company's Macau business is seen as especially attractive, perhaps, but Wynn Macau's license is set to expire in 2022. There have also been reports the company's Boston Harbor property under construction may be sold. But CEO Maddox insisted in April in an appearance on CNBC's "Squawk Box" that "Boston is not up for sale."
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b9eda51655ba4ea883d23fc8fc0c1a9a | https://www.cnbc.com/2018/05/11/you-have-a-brief-window-to-get-in-on-this-student-loan-forgiveness-deal.html | You have a brief window to get in on this student loan forgiveness deal | You have a brief window to get in on this student loan forgiveness deal
VIDEO1:0201:02First-come, first-served: Trump will let some student loan borrowers erase their debtNews Videos
If you thought or were told you didn't qualify for the Public Service Loan Forgiveness program because you were not enrolled in a qualifying repayment plan — typically an income-driven plan — the Department of Education might still let you off the hook.
Congress has allocated $350 million to offer forgiveness to student loan borrowers who meet all requirements for the program except that they were enrolled in graduated or extended repayment plans, which are ineligible for relief.
To qualify, you'll still need to have a loan from the Direct program, have made all of your payments in full and on time, and have worked 10 years in a public service job with a qualifying employer.
The forgiveness plan will be given out on a "first-come, first-served" basis, until the money runs out.
The Department said it would establish the procedures within 60 days of its announcement, which would mean you could apply starting May 22, "though it is not uncommon for the administration to miss such deadlines," said Mark Kantrowitz, a student loan expert.
Still, borrowers should check in with the department. Considering that there are potentially many newly eligible debtors, the money may not last long at all and you'll want to be one of the first applicants the Department reviews, said Kantrowitz.
"You don't want to be playing a game of musical chairs and be the one left out," he said.
Many student loan borrowers thought they were paying their way toward student loan forgiveness, only to learn they are not eligible for one technical reason or another.Emily Rose Bennett | The New York Times
The public service program, established by President George W. Bush in 2007, allows student loan borrowers who pursue government or non-profit public service jobs to wipe out their remaining debt after 10 years of on-time payments.
In 2013, the Consumer Financial Protection Bureau estimated that 1 in 4 American workers could be eligible for forgiveness. But last year, the agency reported that a range of student loan industry practices "delay, defer or deny access" to that consumer protection.
Many students believe they're paying their way toward forgiveness, only to find they hold a loan or are enrolled in a repayment plan that disqualifies them.
Since the department first began accepting requests in October 2017, some 16,000 people have applied, a spokesman told CNBC. In March, the Department expected just 1,000 people to be eligible for the forgiveness though.
Public Service Loan Forgiveness program expected to grow quickly
Year Loans forgiven 2017$5 million2018$25 million2019$250 million2020$1.25 billion2021$5 billion2022$15 billion
Nancy Conneely, director of policy at AccessLex Institute, which provides financial education to students and schools, applauded the funding.
"This is a great first step in ensuring the program is doing what it was intended to do —incentivize people to work in public service," she said.
But Jonathan Fansmith, director of government relations at the American Council on Education, said the $350 million is not enough to cover all the borrowers who would be eligible if they were simply enrolled in a different repayment plan.
Senate Democrats tried to secure $4 billion to mend the program.
The "first-come, first-served" stipulation, Fansmith added, was also surprising.
"You usually don't see that in federal policy," he said. "Loans work like an entitlement."
More from Personal Finance:Strong economy could be your ticket to a new jobIf you're tired of Medicare Advantage, now is the time to ditchRetire in paradise: 5 countries where you can live the dream
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c102cc85b3812c31184545e54610c12d | https://www.cnbc.com/2018/05/12/chinas-first-home-built-aircraft-carrier-starts-sea-trials.html | China's first home-built aircraft carrier starts sea trials | China's first home-built aircraft carrier starts sea trials
Type 001A, China's second aircraft carrier, is seen during a launch ceremony at a shipyard in Dalian on April 26, 2017.STR/AFP/Getty Images
China's first domestically developed aircraft carrier left its northeastern port to begin sea trials on Sunday, state media said, the latest milestone in the country's efforts to modernise its military.
The still-unnamed carrier was launched this time last year but since then has been undergoing fitting of weapons and other systems and has not yet entered service.
The official Xinhua news agency confirmed the ship had left for trials with a short announcement. Other state news outlets showed undated photos of a fog-shrouded carrier just off of its dock.
"Our country's second aircraft carrier set sail from its dock in the Dalian shipyard for relevant waters to conduct a sea trial mission, mainly to inspect and verify the reliability and stability of mechanical systems and other equipment," Xinhua said.
Little is known about China's aircraft carrier programme, which is a state secret, though official media in recent weeks had widely speculated that sea trials were set to start.
Chinese President Xi Jinping is overseeing an ambitious plan to update the armed forces, including the development of stealth jets and anti-satellite missiles, as China ramps up its presence in the disputed South China Sea and around self-ruled Taiwan, an island it considers its own.
Chinese military experts have told state media that the carrier, China's second and built in the northeastern port of Dalian, is not expected to enter service until 2020, once it has been fully kitted out and armed.
But the government has said the new carrier's design draws on experiences from the country's first carrier, the Liaoning, bought second-hand from Ukraine in 1998 and refitted in China.
The new conventionally powered carrier will be able to operate China's Shenyang J-15 fighter jets.
Unlike the U.S. Navy's longer-range nuclear carriers, both of China's feature Soviet-design ski-jump bows, intended to give fighter jets enough lift to take off. They lack the powerful catapult technology for launching aircraft that U.S. carriers have.
China's navy has been taking an increasingly prominent role in recent months, with its first aircraft carrier, expected to serve more as a training vessel, sailing around self-ruled Taiwan and new Chinese warships popping up in far-flung places.
State media has quoted experts as saying that the country needs at least six carriers. The United States operates 10 and plans to build two more.
Most experts agree that developing such a force will be a decades-long endeavor for China, but progress on the home-built carrier holds a certain prestige value for Beijing, seen by many analysts as keen to eventually erode U.S. military prominence in the region.
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d024a8c7a1c128c1de7b74d51dacaa31 | https://www.cnbc.com/2018/05/12/iraq-election-2018-voting-starts.html | Iraqis start voting in first election since defeating Islamic State | Iraqis start voting in first election since defeating Islamic State
MARWAN IBRAHIM | AFP | Getty Images
Iraqis began voting in the first parliamentary election on Saturday since defeating Islamic State, but few people expect its new leaders to deliver the stability and economic prosperity that have long been promised.
Voting stations opened in Baghdad and other cities, Reuters reporters said.
The oil producer has struggled to find a formula for stability since a U.S.-led invasion toppled dictator Saddam Hussein in 2003, and many Iraqis are disappointed with their politicians.
The three main ethnic and religious groups — the majority Shi'ite Arabs and the Sunni Arabs and Kurds — have been at odds for decades, and the sectarian divisions remain as deep as ever.
Much of the northern city of Mosul was reduced to rubble in fighting to oust Islamic State, and it will require billions of dollars to rebuild. The economy is stagnant.
Sectarian tensions, which erupted into civil war in 2006-2007, are still a major security threat. And Iraq's two main backers, Washington and Tehran, are at loggerheads.
Some voters voiced their doubts that the new parliament would be able to tackle the challenges faced by Iraq.
"I will participate but I will mark an 'X' on my ballot. There is no security, no jobs, no services. Candidates are just looking to line up their pockets, not to help people," said Jamal Mowasawi, a 61-year-old butcher.
Incumbent prime minister Haider al-Abadi is considered by analysts to be marginally ahead, but victory is far from certain.
Once seen as ineffective, he improved his standing with the victory against Islamic State, which had occupied a third of Iraq.
But he lacks charisma and has failed to improve the economy. He also cannot rely solely on votes from his community as the Shi'ite voter base is unusually split this year. Instead, he is looking to draw support from other groups.
Even if Abadi's Victory Alliance list wins the most seats, he still has to negotiate the formation of a coalition government, which must be concluded within 90 days of the election.
"It's the same faces and same programmes. Abadi is the best of the worst; at least under his rule we had the liberation (from Islamic State)," said 50-year-old fishmonger Hazem al-Hassan.
His two main challengers, also Shi'ites, are his predecessor Nuri al-Maliki and Iranian-backed Shi'ite militia commander Hadi al-Amiri.
Amiri spent more than two decades fighting Saddam from exile in Iran. The 63-year-old leads the Badr Organisation, which was the backbone of the volunteer forces that fought Islamic State.
He hopes to capitalise on his battlefield successes. Victory for Amiri would be a win for Iran, which is locked in proxy wars for influence across the Middle East.
But many Iraqis are disillusioned with war heroes and politicians who have failed to restore state institutions and provide badly needed health and education services.
Critics say Maliki's sectarian policies created an atmosphere that enabled Islamic State to gain sympathy among some Sunnis as it swept across Iraq in 2014.
Maliki was sidelined soon afterward, having been in office for eight years, but he now trying to make a comeback.
In contrast to Abadi, with his cross-sectarian message, Maliki is again posing as Iraq's Shi'ite champion, and has proposed doing away with the unofficial power-sharing model under which all main parties have cabinet representatives.
Iraq's Sunni minority had dominated key positions in government during Saddam's brutal rule.
Maliki, who pushed for U.S. troop withdrawals, and Amiri, who speaks fluent Farsi and spent years in exile in Iran during Saddam's time, are both seen as much closer to Tehran than Abadi.
The post of prime minister has been reserved for a Shi'ite, the speaker is a Sunni, and the ceremonial presidency has gone to a Kurd — all three chosen by parliament.
More than 7,000 candidates in 18 provinces, or governorates, are running this year for 329 parliamentary seats.
"There is no trust between the people and the governing class," said Hussein Fadel, a 42-year-old supermarket cashier. "All sides are terrible. I will not vote."
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10af73df0fef3e2f0a5d5f5348094c46 | https://www.cnbc.com/2018/05/12/john-mccain-hits-out-at-putin-and-trump-in-new-book.html | John McCain hits out at Putin and Trump in new book, blasts Russia's leader as an 'evil man intent on evil deeds': WSJ | John McCain hits out at Putin and Trump in new book, blasts Russia's leader as an 'evil man intent on evil deeds': WSJ
Sen. John McCain announces his opposition to the "skinny repeal" of Obamacare, July 27, 2017.Getty Images
Sen. John McCain aired his distaste for "evil" Vladimir Putin and expressed qualms about President Donald Trump's handling of the Russian leader, in an excerpt of his new memoir that was published in the Wall Street Journal on Friday.
McCain's memoir, "The Restless Wave: Good Times, Just Causes, Great Fights and Other Appreciations," is expected to be released on May 22. Arizona's senior senator and the GOP's 2008 presidential nominee has been home battling brain cancer, a diagnosis he revealed last year.
In the book's excerpts published by The Journal, McCain minced no words. He blasted both Russia's president and his party's leader, with whom he's had a number of public disagreements. Much of the published comments focus on Russia's suspected meddling in the 2016 election, and Trump's reaction to the controversy.
"Vladimir Putin is an evil man, and he is intent on evil deeds, which include the destruction of the liberal world order that the United States has led and that has brought more stability, prosperity and freedom to humankind than has ever existed in history," McCain wrote. "He is exploiting the openness of our society and the increasingly acrimonious political divisions consuming us."
Putin has vigorously denied all allegations that Russian meddling was in any way linked to the Kremlin. However, in February a federal grand jury indicted 13 Russian nationals and three Russian entities for alleged illegal interference in the 2016 election.
"Putin's goal isn't to defeat a candidate or a party. He means to defeat the West," McCain wrote. "He meddled in one election, and he will do it again because it worked and because he has not been made to stop," McCain wrote.
While the senator said he was skeptical about Trump or his aides colluding with Russia, he felt an investigation was needed to dispel the possibility that a U.S. president could be vulnerable to extortion.
McCain said he wanted to make Putin pay a "steep" price for Russia's role in the 2016 election, and faulted Trump for his "naivete" and "general lack of seriousness about Putin's antagonism to U.S. interests and values."
The investigation by Special Counsel Robert Mueller has engulfed the Trump administration, and hangs over GOP efforts to preserve its Congressional majority in November. While the president has insisted repeatedly there was no collusion with Russia, McCain remained critical of Trump's handling of the situation.
"President Trump seems to vary from refusing to believe what Putin is doing to just not caring about it," McCain wrote in his book. "He needs to comprehend the nature of the threat Putin poses. He needs to understand Putin's nature, and ours," he added.
The White House did not immediately respond to CNBC's request for comment.
The full excerpt can be found on the Wall Street Journal website.
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046075ce50c243d8c8c7df7cc90a96a4 | https://www.cnbc.com/2018/05/12/telehealth-could-replace-doctor-visits-in-major-cities.html | VIDEO3:4603:46Virtual doctorOn the Money
If you need to see a doctor, you'd better plan ahead.
A 2017 survey found 24 days was the average wait time in 15 of the largest cities to schedule a physician appointment.The long waits are a result of a growing shortage of primary care physicians, along with an aging population requiring more health care.
But you can jump that line — if you're willing to go online for your medical visit. Major health care players like, UnitedHealth, Aetna and Kaiser Permanente, are increasingly using virtual care or telehealth for primary care appointments and follow-ups.
Another option is "virtual visit" via a smartphone app.
Among startups offering on-demand health care is 98point6, a Seattle-based app that connects you with a doctor through text messaging.
"We've attempted to solve the primary care crisis. By 2020, there will be a 20K physician shortage. That will rise to 30,000 by 2025," 98point6 CEO and co-founder Robbie Cape told CNBC's "On the Money" in a recent interview.
Cape explained that when you jump into their service, which costs $20 the first year for unlimited visits, patients immediately enter into conversation with artificial intelligence (AI).
"We actually have board-certified physicians that are behind all of the artificial intelligence that we're doing. We're using artificial intelligence not to replace the doctors, but to actually augment the doctors," Cape said.
In non-emergency situations, a "virtual visit" with a physician using text and video on a smartphone, tablet or computer can be faster and cheaper than an in-person doctor's appointment.
The average primary care visit costs $160, while the cost of a virtual visit is between $50 and $75. However, 98point6 offers unlimited virtual visits for the first year for $20, with the second year fee checking in at $120.
A recent Accenture poll found that 70 percent of consumers say they're interested in virtual healthcare. So far, however, only 20 percent have tried it.
So who does 98point6 consider as its target patient? "Absolutely everyone," Cape responded, when asked by CNBC.
"If you have health care, this is still a more economical way for you to see primary care because the cost for the first year is $20 which is as much as your co-pay, if you have insurance," Cape said. "For people who don't have any insurance, this is a phenomenal option and then for the people on HAS (Health Savings Accounts) who are on a high deductible plan, this is also great."
The platform launched on May 1st and is now available to patients in 11 states. California, Connecticut, Florida, Maryland, Michigan, New York, Ohio, Oregon, Pennsylvania and Washington and New Jersey.
Currently all of 98point6's doctors are based in the Seattle headquarters, but he said each physician is licensed to practice medicine in all 11 states where they currently operate.
While he expects to be available in all 50 states by the end of the year, he said the company can be profitable now.
"We are capable of making money even at the rates we're charging today, because of how efficient we can make doctors with the AI," Cape said. "Our board-certified physicians can see large number of patients with all the assistance we give them with technology."
On the Money airs on CNBC Saturday at 5:30 am ET, or check listings for air times in local markets.
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6d4b0d2f071a604fdb5737b2366fcfa8 | https://www.cnbc.com/2018/05/13/best-wireless-headphones-under-50.html | I tested six wireless headphones under $50 — this is my favorite pair | I tested six wireless headphones under $50 — this is my favorite pair
CNBC
You don't need to spend more than $100 on wireless headphones such as AirPods or Beats. There are plenty of Bluetooth headphones that cost half as much and play music, place phone calls and have great battery life. I tested six of them and picked the best
I tested sets from popular affordable brands including Anker, Aukey, Skullcandy, iFrogz, Braven and JLab with prices ranging from $25.99 to $49.99.
One of the most affordable options was my top pick.
My testing consisted of both casual and more intense use with each pair.
I used each pair in different environments, including at work sitting at my desk and walking through the hallways, and also while exercising to see how well they'd stay in while moving. I also placed calls with each, when possible, to see how well the microphone worked.
During my tests, I listened to a range of music from songs by Bruce Springsteen to pop hits from Ariana Grande.
Anker Soundbud CurveAnker
Anker's $25 Soundbuds Curve headphones were my favorite of the bunch.
The Soundbuds Curve headphones sounded good with clear high and low tones. Call quality was strong, and the promised 12 hours of battery life rang true in my tests.
They have a pretty sleek design and comfortable buds, though the ear hooks were a little too big for me at first. I found that after a few wears they become quite comfortable and are a breeze to get on or off.
Zagg iFrogz Impulse Duo WirelessZagg
Zagg's iFrogz Impulse Duo Wireless have a unique cloth coating on the outside, with cords that connect the two earbuds to a controller. I really like that the volume control module doubles a clip that allows for easy storage -- as you can wrap the cord around -- and can be attached to your collar.
I think these are the most versatile in terms of design paired with performance. However, they don't get as loud as other models and the battery life wasn't as good.
Aukey Latitude WirelessAukey
Aukey's Latitude Wireless headphones offer three different sound modes that cater to different styles of music, but I found that the default mode was best and balanced high and low notes pretty well.
They come with "wings" that are supposed to help them stay in your ears, but I found they actually fell out more with these on. I took the wings off and they were more stable in my ears while running.
The Latitude Wireless headphones had the shortest battery life at 8 hours, though, and at the same price, you can get my pick, the Anker Soundbud Curves, which offer up to 12 hours of use.
Braven FLYE SportBraven
Braven's FLYE Sport proved to be a mixed bag -- the earbuds fit very comfortably but the sound quality was average.
The bass response was almost non-existent, which was weird since a lot of budget headphones typically try to maximize this for effect.
The build quality was shockingly bad: they don't feel like $50 earbuds and have a lightweight plastic feel. The tangle-free cord feels flimsy, and I don't trust the durability of them.
JLab
JLab's Fit 2.0 surprised me with the design. They have thin memory wire ear hooks that mold around your ear which was comfortable. Traditional hooks that are found on most over-ear headphones can't do this, but the result is not immediate.
The inline control is bulky and adds weight to the set, which made them more annoying to wear than lighter headphones. JLab has a strong bass which can be overpowering at times, too.
I got around 5 1/2 hours of playtime which is half what I got on my recommended pair.
Skullcandy
Skullcandy's INK'd headphones sound fine -- though bass heavy -- but I didn't like the design. The cord from the neckband to the earbuds is thin and too short. This caused the headphones to bounce while I was running.
I also experienced connectivity problems. If my phone was in my pocket or hand, the song would stop for a second or two, and then resume. I tried connecting to a second device, but it was still a problem. Skullcandy sent another pair which didn't have the same connectivity problems, but we still preferred the other headphones in this roundp.
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45154ced9a2a36a061a10a13e4af589f | https://www.cnbc.com/2018/05/13/china-set-to-deliver-worlds-largest-amphibious-aircraft-by-2022-chinese-state-media.html | China set to deliver world's largest amphibious aircraft by 2022: Chinese state media | China set to deliver world's largest amphibious aircraft by 2022: Chinese state media
China's Amphibious Aircraft AG600 makes its maiden flight at the Jinwan Civil Aviation Airport on December 24, 2017 in China.VCG | Getty Images
China expects to deliver its domestically developed AG600, the world's largest amphibious aircraft, to customers by 2022, the state-run Xinhua news agency reported late on Sunday citing the plane's manufacturer.
"We are endeavouring to get the airworthiness certification from the civil aviation authorities by 2021, and deliver it to the customers by 2022," Xinhua quoted Huang Lingcai, the plane's chief designer at state-owned Aviation Industry Corporation of China (AVIC), as saying.
China developed the AG600 as part of a drive to modernize its military, amid a more muscular approach to territorial disputes in places like the South China Sea that has rattled nerves in the Asia-Pacific region and the United States.
It made its maiden flight in China in December. Huang also said the aircraft would make more flights this year, including its first takeoff from water.
AVIC has spent about eight years developing the aircraft, which is roughly the size of a Boeing 737 and is designed to carry out marine rescues and battle forest fires. It has a range of up to 4,500 kms (2,800 miles) and is designed to be able to take off and land in two meter (six feet) waves.
Powered by four turboprop engines, the AG600 can carry 50 people during maritime search-and rescue missions, and can scoop up 12 metric tons of water within 20 seconds for fire fighting trips, according to state media.
In December, state media said that the aircraft had received 17 orders so far from Chinese government departments and Chinese companies.
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259026f263dd46d73a8ba4e814f13aab | https://www.cnbc.com/2018/05/13/tesla-board-is-facing-shareholder-scrutiny--heres-why.html | Tesla board is facing shareholder scrutiny — here's why | Tesla board is facing shareholder scrutiny — here's why
Elon Musk, chief executive officer of Tesla MotorsDavid Paul Morris | Bloomberg | Getty Images
Tesla board members are facing shareholder scrutiny as the company struggles to contain costs while ramping up production of its Model 3 electric sedans.
Last week, a union-affiliated pension fund adviser called the CtW Investment Group sent a letter to Tesla shareholders urging them to vote against the re-election of three of its board members. The letter makes the argument that Tesla's board is packed with people who lack independence from chairman and CEO Elon Musk, or lack useful automotive industry knowledge.
Specifically, CtW wants shareholders to vote out Valor Equity Partners founder Antonio Gracias, restaurateur Kimball Musk, and media executive James R. Murdoch from the Tesla board.
Gracias invested in PayPal, where Musk first made his fortune, as well as SolarCity, which Tesla bought in 2016. He still has a major stake in another Elon Musk-run company, SpaceX, where he is a board member and director.
Kimball Musk is Elon Musk's brother and a restaurateur by trade. And James Murdoch is the CEO of 21st Century Fox, but lacks any automotive or engineering experience.
In its letter, CtW lamented that Tesla's losses increased to 19% of revenue in its most recent four quarters, and that the company's cash burn has accelerated over this period, too. Different board members could have helped Tesla avoid these losses, they suggested, and may be needed to help Tesla improve its operations in the future.
A separate proposal seeks to remove CEO Elon Musk from his chairman role on Tesla's board. An individual shareholder named Jing Zhao, who owns just 12 shares of common stock in Tesla, initiated this proposal, which shareholders will vote on in June.
In a proxy statement, Tesla recommended that shareholders vote to keep current board members in place, and to keep the CEO in the chairman role.
The statement highlights board members' qualifications including: Gracias' "supply chain optimization expertise;" Murdoch's "knowledge of international markets;" and Kimbal Musk's "experience in retail and consumer markets."
The Tesla board also argued, in the proxy statement:
"It is precisely during times when a company must quickly adapt to constant change and outside pressures that board leadership needs to be lockstep with the company's operations. [Tesla] is still at a point in its development where we must execute well in order to realize our long-term goals, and separating the roles of Chief Executive Officer and Chairman at this time would not serve the best interests of the company or its stockholders."
In its most recent quarterly report, Tesla maintained this risk statement:
"We are highly dependent on the services of Elon Musk, our Chief Executive Officer, Chairman of our Board of Directors and largest stockholder. Although Mr. Musk spends significant time with Tesla and is highly active in our management, he does not devote his full time and attention to Tesla. Mr. Musk also currently serves as Chief Executive Officer and Chief Technical Officer of Space Exploration Technologies Corp., a developer and manufacturer of space launch vehicles, and is involved in other emerging technology ventures."
Read the Ctw Investment Group letter in its entirety, here.
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e0a71147aced3b5ad506c8cc3b314f82 | https://www.cnbc.com/2018/05/13/uae-energy-minister-says-opec-not-targeting-a-certain-oil-price.html | UAE energy minister says OPEC not targeting a certain oil price | UAE energy minister says OPEC not targeting a certain oil price
A support vessel maneuvers near the crude oil tanker 'Devon' as it sails through the Persian Gulf towards Kharq Island oil terminal to transport crude oil to export markets in Bandar Abbas, Iran, on Mar. 23, 2018.Ali Mohammadi | Bloomberg | Getty Images
OPEC producers are not targeting a certain oil price, United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui said on Sunday, speaking at an industry event in Abu Dhabi.
Mazroui, who holds OPEC's presidency this year, said he is worried about the level of oil investment in 2019 and 2020.
Brent crude surpassed $77 a barrel last week after Washington withdrew from an international nuclear deal with Iran.
He added that OPEC is focused on identifying the right level of oil inventory at its next meeting.
"What we are concerned about in the next meeting is what is the right level of inventory that we should see and can we put this group together for longer," he said, speaking on the sidelines of an industry event in Abu Dhabi.
"Don't worry about supply," he told reporters when asked about the impact on oil supplies from U.S. sanctions on Iran, adding that this was not the first time an OPEC member had been in such a situation.
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3a87c5674e69cdb795fb7a6fa28b49e3 | https://www.cnbc.com/2018/05/13/us-shale-story-has-been-very-positive-for-borealis-ceo-says.html | US will be 'very strong' for next 15-20 years due to shale boom, petrochemicals CEO says | US will be 'very strong' for next 15-20 years due to shale boom, petrochemicals CEO says
VIDEO1:1801:18Borealis CEO: US shale story has been 'very positive'Street Signs Europe
The growth of the shale industry will strengthen the U.S. for the next 15 to 20 years, Borealis Chief Executive Mark Garrett told CNBC on Sunday.
"We're very positive on the U.S. because the shale oil, the shale gas, we think that the ethane pricing, and the ethane through to polyethylene — and you could even go through into polypropylene from the propane — we think that will be very strong for the next 15-20 years out the U.S.," Garrett said in an interview with CNBC's Hadley Gamble.
"So we've actually got a large project with Total, we're building a $3.2 billion complex near Houston. And we think that that's going to be the future. The U.S. for the next 15-20 years looks very promising."
Garrett added that President Donald Trump's tax cuts "have not been bad for business."
Borealis, Total and NOVA Chemicals formed a joint venture to boost petrochemicals facilities in Texas earlier this year.
The U.S. shale market has grown in recent years following the advent of drilling techniques including fracking, or hydraulic fracturing. The growth of natural gas production and exports in the U.S. comes at a time when the Organization of the Petroleum Exporting Countries (OPEC) — a collective of the world's biggest oil exporters — and Russia are cutting supply.
Oil prices rose last week after Trump said he would withdraw from a historic nuclear deal with Iran.
VIDEO1:2101:21Borealis CEO: Restored Iran sanctions have not had impact so farStreet Signs Europe
Trump said the U.S. administration would restore sanctions on Iran. The deal, achieved in 2015 under former President Barack Obama, lifted sanctions on Iran that had cut its oil exports roughly in half. In exchange for sanctions relief, Iran accepted limits on its nuclear program and allowed international inspectors to visit its facilities.
Asked whether he was concerned about Trump's move, Garrett told CNBC: "Well, for us at the moment we don't have a specific impact. It's much more that we have to watch these global movements and then you have impacts because the oil price starts to move up, the cost of products starts to change and things like that."
He added: "Actual supply chains are immune at the moment to these problems."
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2e7e8dec07a67183ac2fe9b34ac2efa9 | https://www.cnbc.com/2018/05/13/vehicle-explodes-in-indonesias-surabaya-several-police-wounded.html | Vehicle explodes in Indonesia's Surabaya, several police wounded | Vehicle explodes in Indonesia's Surabaya, several police wounded
Three suicide bombs exploded in three different churches in Surabaya, Indonesia, on Sunday morning killed at least 9 people and injured 40 others.
A vehicle exploded injuring several Indonesian police in Surabaya on Monday, a day after Islamist militants killed at least 13 people in suicide attacks on churches in the country's second largest city, police said.
The blast had occurred at 8.50 a.m. (0150 GMT) at their police office, East Java police spokesman Frans Barung Mangera told a briefing. The full extent of casualties was unclear, he said.
"There has been an explosion, we don't know exactly what happened," he said.
On Sunday, Islamist suicide bombers attacked three churches, killing at least 13 people and wounding about 40.
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9b8f34c2e3d0527957c4efa5c7be7ac2 | https://www.cnbc.com/2018/05/13/without-nuclear-deal-us-expects-resurgence-in-iranian-cyberattacks.html | Without nuclear deal, US expects resurgence in Iranian cyberattacks | Without nuclear deal, US expects resurgence in Iranian cyberattacks
Sergei Konkov | Getty Images
Inside the Pentagon's cyberwarfare unit, analysts have been closely monitoring internet traffic out of Iran. Six thousand miles away, Israel's elite cyber intelligence Unit 8200 has been running war games in anticipation of Iranian strikes on Israeli computer networks.
Government and private-sector cybersecurity experts in the United States and Israel worry that President Trump's decision to pull out of the Iran nuclear deal this week will lead to a surge in retaliatory cyberattacks from Iran.
Within 24 hours of Mr. Trump announcing on Tuesday that the United States would leave the deal, researchers at CrowdStrike, the security firm, warned customers that they had seen a "notable" shift in Iranian cyberactivity. Iranian hackers were sending emails containing malware to diplomats who work in the foreign affairs offices of United States allies and employees at telecommunications companies, trying to infiltrate their computer systems.
And security researchers discovered that Iranian hackers, most likely in an intelligence-gathering effort, have been quietly examining internet addresses that belong to United States military installations in Europe over the last two months. Those researchers would not publicly discuss the activity because they were still in the process of warning the targets.
Iranian hackers have in recent years demonstrated that they have an increasingly sophisticated arsenal of digital weapons. But since the nuclear deal was signed three years ago, Iran's Middle Eastern neighbors have usually been those hackers' targets.
Now cybersecurity experts believe that list could quickly expand to include businesses and infrastructure in the United States. Those concerns grew more urgent on Thursday after Israeli fighter jets fired on Iranian military targets in Syria, in response to what Israel said was a rocket attack launched by Iranian forces.
"Until today, Iran was constrained," said James A. Lewis, a former government official and cybersecurity expert at the Center for Strategic and International Studies in Washington. "They weren't going to do anything to justify breaking the deal. With the deal's collapse, they will inevitably ask, 'What do we have to lose?'"
Mr. Lewis's warnings were echoed by nearly a dozen current and former American and Israeli intelligence officials and private security contractors contacted by The New York Times this week.
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"With the nuclear deal ripped up, our nation and our allies should be prepared for what we've seen in the past," Gen. Keith Alexander, the former director of the National Security Agency, said in an interview on Friday.
Over the years, state-backed Iranian hackers have showed both the proclivity and skill to pull off destructive cyberattacks. After the United States tightened economic sanctions against Tehran in 2012, state-supported Iranian hackers retaliated by disabling the websites of nearly every major American bank with what is known as a denial-of-service attack. The attacks prevented hundreds of thousands of customers from accessing their bank accounts.
Those assaults, on about 46 American banks, detailed in a 2016 federal indictment, were directly attributed to Iranian hackers.
Iranian hackers were also behind a digital assault on the Las Vegas Sands Corporation in 2014 that brought casino operations to a halt, wiped Sands data and replaced its websites with a photograph of Sheldon G. Adelson, the Sands' majority owner, with Prime Minister Benjamin Netanyahu of Israel, according to the indictment.
Security researchers believe the attacks were retaliation for public comments Mr. Adelson made in a 2013 speech, when he said that the United States should strike Iran with nuclear weapons to force Tehran to abandon its nuclear program.
But after the nuclear deal with Iran was signed, Iran's destructive attacks on American targets cooled off. Instead, its hackers resorted to traditional cyberespionage and intellectual property theft, according to another indictment of Iranian hackers filed in March, and reserved their louder, more disruptive attacks for targets in the Middle East.
With the nuclear deal at risk, American and Israeli officials now worry Iran's hackers could retaliate with cyberattacks of a more vicious kind. The Israeli war game sessions have included what could happen if the United States and Russia were drawn into cyberwarfare between Israel and Iran, according to a person familiar with the sessions but who was not allowed to speak about them publicly.
The United States already has a blueprint for what it might expect in Saudi Arabia, where there is growing evidence that Iranian hackers may have been responsible for a string of attacks on several Saudi petrochemical plants over the past 16 months.
The attacks crashed computers and wiped data off machines at the National Industrialization Company, one of the few privately owned Saudi petrochemical companies, and Sadara Chemical Company, a joint venture of Saudi Aramco and Dow Chemical. The hackers used malware — nearly identical to the bugs used in a similar 2012 Iranian assault on Aramco — that replaced data on Aramco computers with an image of a burning American flag.
Private security researchers and American officials suspect that Iranian hackers also played a role in a more serious attack at another, yet-to-be-identified Saudi petrochemical plant in August that compromised the facility's operational safety controls. Analysts believe it was the first step in an attack designed to sabotage the firm's operations and trigger a chemical explosion. The tools used were so sophisticated that some forensic analysts and American officials suspect Russia may have provided assistance.
The August 2017 assault in Saudi Arabia marked a dangerous escalation that put officials and critical infrastructure operators in the United States on high alert. The industrial safety controls that hackers were able to compromise in Saudi Arabia are used in tens of thousands of other installations, including nuclear plants, oil and gas pipelines and water treatment facilities across the United States.
"Iran has upped its game faster than analysts anticipated," said Matt Olsen, the former general counsel of the National Security Agency and a former director of the National Counterterrorism Center. He now works closely with energy companies monitoring cyber threats as president of IronNet, a private cybersecurity company.
Mr. Olsen added that Iran "is now among our most sophisticated nation-state adversaries. We can anticipate those capabilities could well be turned against the U.S."
American officials fear that the Saudi Arabia attack, which was ultimately thwarted by an error in the attackers' computer code, was a training drill for a future attack on infrastructure or an energy company in the United States.
Similar attacks have happened before.
In 2013, Iranian hackers infiltrated computers that controlled the Bowman Avenue Dam in Rye Brook, N.Y. They managed to gain access to computers that control the dam's water levels and flow gates, according to the 2016 indictment.
But any attempt to manipulate the dam's locks and gates would have failed because the dam was under repair and offline. American officials believed the true target of the cyberassault was the Arthur R. Bowman Dam, a much larger dam on the Crooked River in Oregon.
The dam hack was one of about a dozen security incidents at American critical infrastructure providers, including some power grid operators, that officials in the United States attributed to Iranian hackers.
The 2016 indictments named individual Iranian hackers, but there have not been any arrests. Officials believe there is little deterrent to stop them from trying again, especially with the United States leaving the nuclear deal and American businesses, including those in the financial services and the energy sectors, likely to bear the brunt of any attacks.
"Given the history of Iranian cyberactivity in response to geopolitical issues, the American energy sector has every reason to expect some type of response from Iran," Mr. Olsen said.
General Alexander, who now serves as chief executive of IronNet, also warned that although the United States has some of the most sophisticated offensive cyber capabilities in the world, the country is at a tremendous disadvantage when it comes to playing defense.
"We're probably one of the most automated technology countries in the world," he said. "We are an innovation nation and our technology is at the forefront of that innovation. We could have a very good offense, but so do they. And unfortunately, we have more to lose."
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db915768d4a68d71083a6466bdd37959 | https://www.cnbc.com/2018/05/14/asia-markets-oil-stocks-currencies-and-china-data-in-focus.html | China markets notch gains as Asia closes mostly lower; oil steady | China markets notch gains as Asia closes mostly lower; oil steady
Slight gains seen during the U.S. session failed to translate into an advance in Asian stocks on Tuesday, with major markets in the region finishing the day in negative territory.
The hovered around the flat line, before closing lower by 0.21 percent, or 47.84 points, at 22,818.02. Gains seen in banking stocks, with Mitsubishi UFJ Group up 1.71 percent, were offset by declines in the real estate sector, among others.
Over in Seoul, the benchmark Kospi declined 0.71 percent to 2,458.54 as technology stocks weighed. Heavyweight Samsung Electronics fell 1.8 percent while chipmaker SK Hynix gave up early gains to slide 0.94 percent. Steelmakers and automakers also came under pressure.
In Hong Kong, the lost 0.88 percent by 3:22 p.m. HK/SIN after notching its sixth straight session of gains on Monday. Heavily weighted financials and technology shares were a drag on the benchmark, with Tencent down 2.72 percent before the market close.
Mainland markets closed higher following the release of mixed China data, which showed industrial output topped expectations while retail sales missed forecasts. Also in focus was MSCI's Tuesday announcement that 234 China A shares will be added to its indexes on June 1.
The advanced 0.58 percent to end at 3,192.58 and the Shenzhen composite rose 0.91 percent to 1,839.88.
In Sydney, the S&P/ASX 200 eased 0.61 percent to 6,097.80, with declines seen in all but the information technology subindex. Telecommunications stocks traded lower as Telstra fell 5.59 percent after its profit warning on Monday.
MSCI's broad index of shares in Asia Pacific excluding Japan was lower by 0.83 percent in Asia afternoon trade.
The broad move lower in major Asian markets followed a positive session on Wall Street, with U.S. stocks finishing slightly higher as investors focused on U.S.-China trade ties ahead of a second round of negotiations expected this week.
Of note, the yield on the benchmark 10-year U.S. Treasury note stood at 3.019 percent during Asian trade, after topping the 3 percent level in the last session.
Commerce Secretary Wilbur Ross on Monday said he hoped good relations between Trump and Xi would help to bring an agreement on trade matters, although he also acknowledged that the gap between the countries "remains wide."
That followed a tweet from President Donald Trump on Sunday about working to find a way for Chinese telecommunications equipment company ZTE "to get back into business, fast." That pledge comes after the U.S. government imposed a ban on U.S. companies on supplying ZTE with technology after the Chinese firm was found to have illegally shipped equipment to Iran.
Amid optimism that negotiations between the two countries, some analysts highlighted broader uncertainty regarding trade-related news flow.
"[I]t's all still very much a work in progress," David de Garis, director of economics at National Australia Bank, said in a note.
Declines in the region also followed the move higher seen in the last session, with Hong Kong's Hang Seng Index leading the advance. The benchmark closed up 1.35 percent on Monday.
Meanwhile, oil prices were steady after gains seen in the last session as OPEC raised its global oil demand estimate for the year. U.S. West Texas Intermediate crude futures slipped 0.07 percent to $70.91 per barrel and Brent crude futures edged lower by 0.04 percent to trade at $78.20.
Oil prices have risen generally amid production curbs, which began in 2017, led by the Organization of Petroleum Exporting Countries (OPEC).
"You have 24 countries: There's OPEC, non-OPEC, Vienna Alliance, and there's a real effort to cement that relationship. So even if the full cuts don't continue into 2019, there's a sense that this dialogue and partnership with Russia has been very productive, they don't want to let that go," Helima Croft, global head of commodity strategy at RBC Capital Markets, told CNBC's "Capital Connection."
In individual movers, AAC Technologies fell 5.96 percent after the company on Monday announced first-quarter net profit that missed expectations.
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3b115c199c076edaf9e85904408264fb | https://www.cnbc.com/2018/05/14/britain-awards-3-point-3-billion-in-submarine-work-to-bae-systems.html | Britain awards $3.3 billion in submarine work to BAE Systems | Britain awards $3.3 billion in submarine work to BAE Systems
Photographer | Collection | Getty Images
Britain on Monday awarded defense firm BAE Systems 2.4 billion pounds ($3.26 billion) to work on two submarine program, the company said in a statement.
The Ministry of Defense gave BAE a 1.5 billion pound contract for delivery of the seventh Astute class submarine, and a further 900 million pounds for the next phase of the Dreadnought submarine program, the company said.
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79874085230797b05317b9e31c8340a8 | https://www.cnbc.com/2018/05/14/canadas-brookfield-makes-3-point-3-billion-offer-for-australias-healthscope-sparking-hopes-for-a-bidding-war.html | Canada's Brookfield makes $3.3 billion offer for Australia's Healthscope, sparking hopes for a bidding war | Canada's Brookfield makes $3.3 billion offer for Australia's Healthscope, sparking hopes for a bidding war
Bruce Flatt, chief executive officer of Brookfield Asset Management Inc.Kevin Van Paassen | Bloomberg | Getty Images
Canadian investment firm Brookfield Asset Management made a $3.3 billion approach for Australian hospital group Healthscope, trumping a local buyout proposal and sending shares of the target up to a two-year high on Monday.
The approach, disclosed by Healthscope in a statement, sets the scene for a takeover battle for the No. 2 Australian private hospital operator which has seen its shares slide due to high debt and a shift back to public health services after a scandal in the private sector.
New Australian private-equity player BGH Capital, led by former executives of TPG Capital Management and Macquarie, made an approach worth $3.1 billion on April 26. Pension fund AustralianSuper is partnering BGH in that proposal.
Healthscope shares rose 4.9 percent in a flat overall market by midsession. The stock was trading at A$2.59, its highest since April 2016, and higher than Brookfield's A$2.50 indicative bid, a sign investors expect a bidding war.
"The entry of Brookfield adds to bidding tension and (I) expect the BGH-AustralianSuper consortium will most likely increase its offer bid," said Chris Kallos, a healthcare analyst at Morningstar.
The deal would continue Brookfield's rapid growth in the world's 12-largest economy. If Brookfield buys Healthscope, it would be the biggest takeover of an Australian company by a Canadian party since a consortium including Brookfield paid A$9 billion for rail and ports giant Asciano in 2016.
Brookfield, BGH, and AustralianSuper declined to comment.
Last week, Canadian landlord NorthWest Healthcare Properties REIT said it paid $312 million for a 10 percent stake in Healthscope. Northwest also declined to comment on Monday.
Healthscope, which listed in 2014, said in the statement its board would assess both proposals and update the market on any developments.
It added that Brookfield's proposal came with a condition that effectively meant AustralianSuper was prevented from voting against its offer if the target accepted it. AustralianSuper already has a 14 percent stake in Healthscope.
"Ultimately, the support of AustralianSuper is likely to determine the winning bidder," said Danial Moradi, senior equities strategist at Lonsec Research.
"The structure of (Brookfield's bid) implies that BGH will have to increase their original bid," he added in an email.
Brookfield is being represented by Bank of America Merrill Lynch for the potential transaction, according to Healthscope, while Healthscope has hired UBS.
Healthscope was a high-profile listing in 2014, with its shares rising steadily amid hopes that it would benefit from the country's ageing population and a heavily state-subsidised health system.
But investors started selling the stock in 2016 after media reports accused private health insurers, which fund patients for companies like Healthscope, of withholding payouts to policyholders, prompting more patients to opt for the public system.
Healthscope, which had embarked on building a new hospital in Sydney's north, issued two profit warnings, and when BGH lobbed its takeover proposal last month Healthscope shares were trading below their IPO price.
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d1fd3f7c83087744d8d01240aa7e854a | https://www.cnbc.com/2018/05/14/chipotle-gets-a-big-bullish-analyst-call-as-piper-jaffray-sees-25-percent-rally-from-here.html | Chipotle gets a big bullish call from an analyst: Piper Jaffray sees 25% rally | Chipotle gets a big bullish call from an analyst: Piper Jaffray sees 25% rally
Chipotle restaurant workers fill orders for customers in Miami, Florida.Getty Images
Chipotle Mexican Grill's recovery efforts, including the appointment of a new chief executive and a new delivery partnership, represent steps in the right direction, according to Piper Jaffray.
The firm reiterated its overweight rating on the restaurant company's shares, predicting Chipotle's stock price could top $530 in 12 months, the highest target on Wall Street and implying 25 percent upside from Friday's close. Piper's previous target was $420.
"Chipotle shares remain a top recovery pick. When, and as (not "if") the recovery unfolds, meaningful leverage exists," analyst Nicole Regan said in a note Sunday. "Our positive bias is based on culture change, strong unit-level economics and solid balance sheet. Catalysts include operational excellence, brand remodeling, and capital deployment."
The appointment of Brian Niccol as chief executive officer — who arrived with a successful track record at Taco Bell — as well as a new delivery partnership with DoorDash have supported the stock and sales, Regan said, and justify same-store sales expectations in excess of 2 percent.
Shares of Chipotle rose 0.7 percent in premarket trading following Piper Jaffray's optimistic call. The shares are up 47 percent this year.
While Niccol built a reputation for menu innovation at Taco Bell, he recently told CNBC's "Squawk on the Street" that while investors shouldn't expect major changes to the company's offerings, items like breakfast burritos aren't out of the question.
"Job No. 1 is to remind people why they love Chipotle," Niccol told CNBC in March. "I think there [are] opportunities to use what we have and present it in new forms, new varieties, to get people re-engaged with what they love about Chipotle."
Such initiatives are likely welcome news to investors like Pershing Square activist Bill Ackman, who has leveraged a 10 percent stake in the company to encourage ideas like drive-thrus and breakfast offerings to reignite the beleaguered shares following a series of food safety issues.
"We're not just betting on a recovery from the food safety issue," Ackman told CNBC in November. "This is one of the least optimized of thequick-servicee restaurants."
It appears Ackman isn't the only investor willing to give Chipotle another chance.
Shares of the casual Mexican eatery are up roughly 70 percent since the Chipotle board announced Niccol's appointment on Feb. 13, while a recent hike to menu prices helped the Mexican eatery post better-than-expected earnings last month.
The improved performance announced April 25 sent shares soaring 24 percent the next day, their best day since the company went public in 2006, when its share price doubled.
Disclaimer
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e1cbdaed84f44a7bbb94ae4c4fcb4c27 | https://www.cnbc.com/2018/05/14/cnbc-interview-with-dr-sultan-ahmed-al-jaber-chief-executive-officer-the-abu-dhabi-national-oil-company.html | CNBC Interview with Dr. Sultan Ahmed Al Jaber, Chief Executive Officer, The Abu Dhabi National Oil Company | CNBC Interview with Dr. Sultan Ahmed Al Jaber, Chief Executive Officer, The Abu Dhabi National Oil Company
Below is the transcript of an interview with The Abu Dhabi National Oil Company's Chief Executive, Dr. Sultan Ahmed Al Jaber, and CNBC's Middle East Anchor Hadley Gamble at the Downstream Investment Forum.
HG: Doctor Sultan, thank you so much for joining CNBC. We're very excited to finally have you on. Talk to me a little bit about this multibillion dollar downstream growth plan. What's happening at ADNOC?
SA: This is in fact a natural extension for other Abu Dhabi's engagement in the oil and gas sector. In our view, ADNOC should, and ADNOC can, engage in the downstream sector. This is not new to ADNOC. ADNOC has already made some serious investments in the downstream, but now it is time that we expand our portfolio significantly. The way we're going to do this is going to be very smart, centered around what we do best, and that is establishing long term strategic partnerships. And we are in the business of value maximization. We're going further and downstream will help stretch the dollar from every barrel we produce. And this is exactly our approach and this is going to be what we aim to achieve.
HG: You're talking about having multiple partners, you're talking about a really international growth strategy as well. How does the Trump impacting your business today?
SA: In fact this is in line with our leadership's directives to help diversify our economy and the UAE, I know for ADNOC to continue playing its important role in helping the economic growth in the country. ADNOC continues to be focused on upstream. Yet this time around ANOC will expand its business focus and to downstream by creating many multibillion dollar opportunities in the downstream. We see a huge growth opportunity in the downstream market. We see the growth coming mainly from the east and this is the market we are going to be very much focused on.
HG: Talk to me a little about the opportunities with Saudi Arabia for example…when you look at what's happening in the region there's a lot of growth coming from Saudi Arabia, there's a lot of focus on what's happening there next. Are there any opportunities where ADNOC can…
SA: No, I'd rather focus on…
HG: None whatsoever?
SA: I'd rather focus on our projects
HG: When you talk about what's happening next in terms of the global growth trajectory, the global growth story, you mentioned Asia, what's exciting to you in Asia today?
SA: I couldn't hear you.
HG: What's exciting to you in Asia today?
SA: Asia…when we look at the whole value chain of hydrocarbons we find that oil and gas will continue to be the essential part of the energy mix that will continue to grow. Having said that, downstream opportunities, mainly refining the derivatives as well as petrochemicals, is going to be the only segment of the hydrocarbon business value chain that is going to grow, and in fact double in the next 20 years. Most of this growth is actually coming from Asia. And as such, ADNOC is aiming to expand its business involvement and engagement with our Asian partners as well as other partners from all over the world to help expand ADNOC's footprint through its products and through its investments and projects in the Asian markets.
HG: So a lot of opportunities for growth, a lot of big plans for ADNOC, but when you look at what's happening globally, you've got a lot of worries about what's going to happen with this China-tariff situation with the United States, a lot of worries about what's going to happen next with Iran, a lot of conversations surrounding what that might do to the oil price. How do you strategize given the fact that we've got so many geopolitical headwinds?
SA: ADNOC, I can comfortably say today, that ADNOC is in fact a very resilient and flexible organization. We have very much focused on our efficiency across the value chain of our business. We have enhanced our margins and our profitability, we executed commerciality across our business and every step of the way. And as such such matters whether they happen or not we will continue to stay focused on efficiency and profitability and will be able to manoeuvre throughout the different market dynamics.
HG: And is there a specific oil price that is good for ADNOC?
SA: We always aim for the highest possible price. Having a consultation of course that this price would also allow for not only more revenue streams but also bigger opportunities and the upstream which would lead to further investment in the downstream.
HG: So, what's next for you?
SA: Well, we continue to look for opportunities in the Upstream and the midstream and the downstream. Again we are a company that is very much focused on value maximization, we are in the business of maximizing value for our shareholders. And as such, we are very determined to invest in the downstream to stretch the dollar from every barrel we produce.
ENDS
For more information contact Jonathan Millman, EMEA Communications Executive: Jonathan.Millman@cnbc.com / +44 7788 307 996
About CNBC:
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CNBC is a division of NBCUniversal. For more information, visit www.cnbc.com.
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07cf3af7cbcb1a0d561ad03e4e8dc020 | https://www.cnbc.com/2018/05/14/ellen-kullman.html | Ellen Kullman | Ellen Kullman
Ellen Kullman is a co-chair of the Paradigm for Parity® coalition and retired Chair of the Board and CEO of DuPont. A native of Wilmington, Delaware, Kullman holds a B.S. in mechanical engineering from Tufts University and an M.S. in Management from Kellogg School of Management of Northwestern University.
She began her 27-year career at DuPont in 1988. Prior to joining DuPont, she worked for Westinghouse and General Electric. Kullman was named CEO at the beginning of 2009 and board chair late that year, becoming the 19th executive to lead DuPont since its founding in 1802. Prior to those appointments she served as president, executive vice president and a member of the company's office of the chief executive.
As a business leader, she led double-digit growth of the company's Safety & Protection business portfolio, started-up two successful high-growth businesses known today as DuPont Industrial Biosciences and DuPont Sustainable Solutions. During her seven years as CEO, Kullman led the company's focus on growth in emerging international markets and championed the power of DuPont science and global market knowledge to transform industries. She decisively positioned the company for its next generation of growth, executing a strong plan that is delivering results today while positioning DuPont for future growth. She is a board director of United Technologies, Carbon, Amgen, Goldman Sachs and Dell Technologies.
She is a member of the National Academy of Engineering and past president of the U.S. China Business Council. She serves on the board of trustees of Northwestern University. Kullman has been named as one of the "50 Most Powerful Women in Business" by Fortune and one of the "World's Most Powerful Women" by Forbes.
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d1d518cb2a9fa66caa21dc1a93d46f5a | https://www.cnbc.com/2018/05/14/european-markets-italy-political-uncertainty-eases-china-us-trade.html | Europe shares close mixed as oil and gas sector rebounds; Italy edges towards coalition deal | Europe shares close mixed as oil and gas sector rebounds; Italy edges towards coalition deal
European stocks closed mixed Monday afternoon as investors focused on Italian politics, trade relations between the U.S. and China, and a dip in oil prices.
The pan-European Stoxx 600 closed down 0.05 percent. While major bourses and most sectors were in the red, strong performances from the health care and travel sectors boosted the broader index.
Financial services stocks fell the furthest on Monday, closing 1.1 percent lower. Close behind were telecoms, 0.9 percent lower. The U.K.'s BT was among the poorest performing companies within the sector, down 2.4 percent. Last week the firm announced that it would cut 13,000 jobs in the next three years.
Meanwhile, travel and leisure surged in afternoon trade to close up 1.4 percent. The sector was led by gambling firms Paddy Power Betfair and William Hill, boosted by news of a U.S. Supreme Court ruling that would allow for states to legalize sports betting. The firms closed up 11.9 percent and 10.7 percent respectively.
Health care was one of the few other sectors in positive territory, closing up 1 percent. It recovered from last week's slump after President Donald Trump unveiled plans to lower prescription drug prices.
Oil and gas stocks recovered from negative trade earlier on in the day, climbing in the afternoon session to close 0.5 percent higher. In fact, Brent crude hit a new 3-1/2 year high on Monday afternoon, despite push back in Europe and Asia against U.S. sanctions on crude exporter Iran, as well as rising U.S. drilling. Brent crude was trading up 85 cents, or 1.1 percent, at $77.97 a barrel by 3:20 p.m. London time.
Iwg topped the European benchmark, up by 23 percent after three different companies signaled an interest in buying the firm.
The Portuguese energy firm EDP also rose 9 percent by the end of Monday's trade after the Chinese group Three Gorges presented a takeover bid.
ABN Amro fell to the bottom of the index, closing 6 percent lower as the Dutch bank's first-quarter profits took a hit from larger-than-expected loan impairments.
In Europe, the focus was on Italy where the two anti-establishment parties could form the next government. The left-wing Five Star Movement (M5S) and the right-wing Lega met the Italian president Sergio Mattarella Monday afternoon, potentially breaking months of political deadlock. However, as reported by Reuters, the head of Five Star Movement, Luigi Di Maio, asked the president for "a few more days" in order to reach an agreement on who will head the new coalition.
Stocks traded higher on Monday amid hopes of a potential breakthrough in trade tensions between the U.S. and China, the world's two largest economies.
The Dow Jones industrial average rose 150 points, with UnitedHealth and Walmart as the best-performing stocks in the index. The S&P 500 gained 0.4 percent, with energy, health care and tech outperforming. The Nasdaq composite advanced 0.6 percent.
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48ae65c5dc01bc67d68edb0719872007 | https://www.cnbc.com/2018/05/14/facebook-just-entered-a-death-cross-which-could-signal-a-failed-rally.html | Facebook just entered a 'death cross,' which could signal a failed relief rally: Piper Jaffray | Facebook just entered a 'death cross,' which could signal a failed relief rally: Piper Jaffray
VIDEO2:5002:50Trading Nation: Facebook’s big runPower Lunch
Facebook has ricocheted back to prescandal levels and is now within reach of record highs again. The charts tell a different story, says Craig Johnson, chief market technician at Piper Jaffray.
"I see a lot of technical damage that has been done in this stock," Craig Johnson, chief market technician at Piper Jaffray, told CNBC's "Trading Nation" on Friday.
Facebook endured heavy sell-offs in the weeks after the Cambridge Analytica scandal broke in March. That controversy involved a data firm compiling third-party app data on the social network's users to target political advertisements.
Since the scandal broke on March 17, Facebook has risen 1 percent to above $187 a share. At its worst, the stock had tanked more than 19 percent and was on the cusp of a bear market.
While it has bounced back and then some, Johnson sees hidden damage on the charts.
"As I look at this name, I think you got to be a little bit more careful," he said. "You've also got the 50-day moving average closing back below the 200-day moving average which is technically considered a bit of a death cross."
A stock marks a death cross when the 50-day moving average crosses below the 200-day moving average. The technical move usually indicates the beginning of a bearish trend.
Using past data scandals as a guide, Johnson says Facebook's shares likely have more work to do to prove they have better days ahead of them.
"Look at the chart of Facebook compared to Equifax," said Johnson.
"Equifax you had a huge data scandal there. About 144 million users, you had this gigantic 30 percent sell-off, big relief rally, never got back to new highs," Johnson noted. "You look at Facebook, something very similar has happened here: big sell-off, not back to new highs but close. That's what you got to be watching."
Equifax plummeted last year amid a data breach that exposed more than 140 million users' information. The stock lost as much as 14 percent in one single trading day in September. Since hitting a multiyear low on Sept. 14, the stock has rebounded nearly 28 percent.
"I think it's going to be a show-me story," Johnson said of Facebook. "I'm not rushing back into this stock at this point in time from a chart perspective as I think there's going to be just a failed relief rally."
Facebook bull Michael Binger of Gradient Investments sees the stock heading higher.
"We own the stock, we have no intention of selling it, we're very comfortable holding it here," Binger said on Friday's "Trading Nation."
Binger says the company has soothed investor anxiety with better-than-expected earnings and user metrics, a comforting sign that the social network will survive the scandal. The last time the stock traded around $187, growth expectations were actually lower than current estimates, he says.
"The last time the stock was at these levels, numbers were actually lower so estimates have been revised up, the stock is cheaper, we think it's a strong company, the model is intact," said Binger.
As of Friday's close, Facebook shares trade 4 percent below all-time intraday highs set on Feb. 1.
Disclaimer
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4dfd9ada8deb725c4ae86ded4e8d893c | https://www.cnbc.com/2018/05/14/firebrand-cleric-sadr-on-course-to-win-iraq-election.html | Firebrand cleric Sadr on course to win Iraq election | Firebrand cleric Sadr on course to win Iraq election
HAIDAR HAMDANI | AFP | Getty Images
Moqtada al-Sadr was leading in Iraq's parliamentary election with more than half the votes counted, the electoral commission said, a surprise comeback for the powerful nationalist Shi'ite cleric who had been sidelined by Iran-backed rivals.
Shi'ite militia leader Hadi al-Amiri's bloc, which is backed by Tehran, was in second place, according to the count of more than 95 percent of the votes cast in 10 of Iraq's 18 provinces.
The preliminary results are a setback for Prime Minister Haider al-Abadi who, despite entering the election as the apparent frontrunner, appeared to be running third.
Sadr's apparent victory does not mean his bloc could necessarily form the next government as whoever wins the most seats must negotiate a coalition government, expected to be formed within 90 days of the official results.
Security and commission sources had earlier said Abadi was leading the election, which was held on Saturday and is the first since the defeat of Islamic State in the country.
Turnout was 44.52 percent with 92 percent of votes counted, the Independent High Electoral Commission said - that was significantly lower than in previous elections. Full results are due to be officially announced later on Monday.
Sadr and Amiri both came in first in four of the 10 provinces where votes were counted, but the cleric's bloc won significantly more votes in the capital, Baghdad, which has the highest number of seats.
The commission did not announce how many seats each bloc had gained and said it would do so after announcing the results from the remaining provinces.
A document provided to Reuters by a candidate in Baghdad that was also circulating among journalists and analysts showed results from all 18 provinces.
Reuters could not independently verify the document's authenticity but the results in it for the 10 provinces announced by the electoral commission matched those of the commission.
Reuters calculations based on the document showed Sadr had won the nationwide popular vote with more than 1.3 million votes and gained 54 of parliament's 329 seats. He was followed by Amiri with more than 1.2 million votes, translating into 47 seats, and Abadi with more than 1 million votes and 42 seats.
Sadr will not become prime minister as he did not run in the election but his apparent victory puts him in a position to pick someone for the job. Winning the largest number of seats does not automatically guarantee that, however. The other winning blocs would have to agree on the nomination.
In a 2010 election, Vice President Ayad Allawi's group won the largest number of seats, albeit with a narrow margin, but he was blocked from becoming prime minister for which he blamed Tehran.
The same fate could befall Sadr. Iran has publicly stated it would not allow his bloc to govern.
"We will not allow liberals and communists to govern in Iraq," Ali Akbar Velayati, top adviser to the Islamic Republic's Supreme Leader Ayatollah Ali Khamenei, said in February.
His statement, which sparked criticism by Iraqi figures, was referring to the electoral alliance between Sadr, the Iraqi Communist Party and other secular groups who joined protests organized by Sadr in 2016 to press the government to see through a move to stem endemic corruption.
Sadr has a zealous following among the young, poor and dispossessed but had been sidelined by influential Iranian-backed figures.
Younes Mohammad | Getty Images
During the election campaign, frustrated Iraqis of all shades, complained about their political elite's systematic patronage, bad governance and corruption, saying they didn't receive any benefits of their country's oil wealth.
Iraq has been ranked among the world's most corrupt countries, with high unemployment, rife poverty, weak public institutions and bad services despite high oil revenues for many years. Endemic corruption has eaten at the government's financial resources.
Sadr derives much of his authority from his family. Sadr's father, highly respected Grand Ayatollah Mohammed Sadeq al-Sadr, was murdered in 1999 for defying Saddam Hussein. His father's cousin, Mohammed Baqir, was killed by Saddam in 1980.
Celebrations erupted on the streets of Baghdad after the commission's announcement, with thousands of Sadr's supporters singing, chanting, dancing and setting off fireworks while carrying his picture and waving Iraqi flags.
"For the first time I can say congratulations to the leader and congratulations to the Iraqi people, congratulations on winning first place in Baghdad, and God willing we will be the first in Iraq," said Abbas Allawi, a candidate on the Sadr-backed Sairoon list.
Many of his supporters chanted "Iran out".
Whoever wins the election will have to contend with the fallout from U.S. President Donald Trump's decision to quit Iran's nuclear deal, a move Iraqis fear could turn their country into a theater of conflict between Washington and Tehran.
Abadi, a British-educated engineer who came to power four years ago after Islamic State seized a third of Iraq's territory, received U.S. military support for Iraq's army to defeat the Sunni Muslim militant group even as he gave free rein to Iran to back Shi'ite militias fighting on the same side.
He was viewed as a frontrunner before the election. His rivals were seen as Maliki and Amiri, both closer than Abadi to Iran, which has wide sway in Iraq as the primary Shi'ite power in the region.
If parliament chooses to grant him a second term, Abadi will remain under pressure to maintain that balancing act amid tensions between Washington and Tehran over the nuclear accord.
Iraqi Prime Minister Haider al-Abadi delivers a speech during Baghdad Dialogue Conference in Baghdad, Iraq on January 14, 2017.Haydar Hadi | Anadolu Agency | Getty Images
Abadi was seen by some Iraqis as lacking charisma and as ineffective. He had no powerful political machine of his own when he took office.
But the defeat of Islamic State and Abadi's campaign to eradicate Iraq's rampant corruption improved his standing.
Amiri's Badr organization played a key role in the battle against Islamic State. But some Iraqis resent his close ties to Tehran. The dissident-turned-militia leader spent more than two decades fighting Saddam from exile in Iran.
The results unexpectedly showed former Prime Minister Nuri al-Maliki, who was touted as a serious challenger to Abadi, lagging behind.
Unlike Abadi, a rare ally of both the United States and Iran, Sadr is an enemy of both.
He has led two uprisings against U.S. forces in Iraq and is one of the few Shi'ite leaders to distance himself from Iran.
He portrays himself as an Iraqi nationalist and last year met Crown Prince Mohammed bin Salman of Saudi Arabia who is staunchly opposed to Iran.
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fe4649ebe151cb4c102b897deb271e28 | https://www.cnbc.com/2018/05/14/giants-qb-eli-manning-on-trial-accused-of-conspiring-to-sell-bogus-game-used-helmets.html | Giants QB Eli Manning on trial, accused of conspiring to sell bogus 'game-used' helmets | Giants QB Eli Manning on trial, accused of conspiring to sell bogus 'game-used' helmets
Eli Manning #10 of the New York Giants runs off the field after the 12-9 win overtime win over the Kansas City Chiefs on November 19, 2017 at MetLife Stadium in East Rutherford, New Jersey.Getty Images
Jury selection is scheduled to begin on Monday in a New Jersey memorabilia dealer's lawsuit that accuses New York Giants quarterback Eli Manning of conspiring with the team's equipment staff to sell bogus "game-used" helmets to unsuspecting collectors as part of a long-running scam.
Barring a last-minute settlement, the two-time Super Bowl-winning quarterback could take the witness stand to defend himself against the explosive allegations as early as next week.
Manning and the team have denied the claims, and have characterized lead plaintiff Eric Inselberg as a scam artist who sold fake memorabilia himself over a span of several years. Manning's attorneys also have described Inselberg's lawsuit as "inflammatory and baseless," and have accused Inselberg's attorneys of using underhanded tactics to whip up a media frenzy against their client.
VIDEO3:3903:39People are still watching football, but lying about itWorldwide Exchange
Inselberg filed the lawsuit in 2014. It says that two helmets purchased by Inselberg and two other plaintiffs — including one purportedly used by Manning during the Giants' 2007-2008 Super Bowl season — were bogus. Inselberg says photographic experts using a technique called "photomatching" could not find evidence that the helmets were ever used in games.
The Giants and Manning contend photomatching is unreliable because it does not take into account that helmets are routinely reconditioned during or after a season, the evidence of which might be found on the inside of the helmet and not the outside.
The stakes were raised in the lawsuit in April 2017 when Inselberg's attorneys filed court documents that contained emails between Manning and equipment manager Joseph Skiba, who also is a defendant in the lawsuit. In one email, Manning asks Skiba to get "2 helmets that can pass as game used."
The email does not refer to the two helmets at issue in the lawsuit, but Inselberg alleges it indicates a pattern of fraud. In a court filing last week, Inselberg's attorneys wrote they would introduce evidence during the trial that would "show that Manning engaged in a pattern of knowingly providing items to Steiner Sports that he misrepresented as having been game-used when he knew they were not."
When the emails went public last year, Manning angrily denied any wrongdoing. In a court filing this month, Manning's attorney wrote that the email was intended to ask Skiba for two game-used helmets that would "satisfy the requirement of being game-used."
Manning never instructed Joe Skiba to create any fraudulent memorabilia," attorney Robert Lawrence wrote. "Rather, Manning believed that if he asked Joe Skiba for his helmets, he received his game-used helmets and that the helmets he received from Skiba were his game-used helmets."
In the same court filing, Manning's lawyer accused Inselberg of being "engaged in a decades long memorabilia scheme" in which he obtained, without permission, game-used Giants equipment, including Manning's, from Skiba and Skiba's brother, Ed, as well as a local dry cleaner.
Attorneys for the plaintiffs, the Giants and Manning didn't return messages seeking comment Sunday night.
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1399edc72833f2e76c6e7ca2e035d320 | https://www.cnbc.com/2018/05/14/goldman-these-7-growth-stocks--including-amazon--should-rally-even-in-a-flattish-market.html | Goldman: These 7 growth stocks — including Amazon — should rally even in a flattish market | Goldman: These 7 growth stocks — including Amazon — should rally even in a flattish market
VIDEO0:4900:49Goldman Sachs tells its clients to buy these 7 growth stocksNews Videos
With the S&P 500 not likely to do much the rest of the year, Goldman Sachs says there is still an investment strategy that can outperform.
The firm recommended companies with strong prospects for sales growth next year. David Kostin, Goldman's chief U.S. equity strategist, updated his "high revenue growth" stock basket, which is now based on 2019 Wall Street estimates.
He wrote in a note to clients Friday that with the rate of GDP growth expected to slow next year, "We continue to recommend investors own stocks with the highest forecast sales growth."
The basket includes several internet and technology stocks such as Amazon, Netflix and Autodesk.
VIDEO2:1202:12Goldman Sachs chief strategist: The economy will continue to grow this year and next yearSquawk on the Street
Kostin reiterated his year-end price target of 2,850 for the S&P 500, representing just 4.5 percent upside from Friday's close.
He noted the previous version of the "high revenue growth" basket, which was based on 2018 estimates, outperformed the S&P 500 by 8 percentage points over the past 12 months.
Here are seven stocks in the Goldman Sachs "high revenue growth" stock basket with estimated 2019 sales growth of more than 20 percent recommended by Kostin.
Disclaimer
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ab5028fd5a09327af0d93909e1e0f5fd | https://www.cnbc.com/2018/05/14/heres-how-much-your-broker-makes-when-you-buy-a-bond.html | Here’s how much your broker makes when you buy a bond | Here’s how much your broker makes when you buy a bond
John Zich | Bloomberg | Getty Images
Let's be honest: Do you actually know much your broker earns when you put in an order to buy a municipal bond?
You'll be able to answer that question today. Starting on May 14, broker-dealers will need to disclose mark-ups and mark-downs they charge on bonds bought and sold to retail investors on the same trading day.
Firms will also have to tell customers the time they executed the trade and provide a reference and a hyperlink to a page detailing the publicly available trading data for the bond.
The rules have been in the works for years: The regulations from the Financial Industry Regulatory Authority and the Municipal Securities Rulemaking Board were approved by the U.S. Securities and Exchange Commission in November 2016.
Now that the regulation is in place, you'll be able to see these transaction fees in a dollar amount and as a percentage of the "prevailing market price" for the bond.
"Brokerages compete pretty significantly to provide cheapest execution on stock trading, but it's not the same in the bond market," said Micah Hauptman, financial services counsel at the Consumer Federation of America.
"This is just the beginning of increased price transparency," he said.
Here's why you might not have had that much of a window into the real cost of your bonds.
Getty Images
When a broker-dealer buys or sells bonds for investors, it can either trade the bonds from its own inventory or it can trade in the open market for you.
If your broker arranges a bond trade in the open market, then you receive a disclosure that shares the details on the transaction costs you paid.
However, if your broker trades the same exact bond out of the firm's own inventory in what's known as a "principal trade," there is no requirement that you receive a disclosure of your transaction fees — until now.
These transaction fees or "spreads" are tacked onto the price of the bond: In a principal trade of $100, you might just see that you're paying $102 for the security. If you sell it back to the firm, you're getting back $98.
"You don't see that $2 markup or markdown, you just see that that you bought or sold it for that price," Hauptman said. "Now, firms have to show you the percentage and real dollar amount of what the bond costs to trade."
Under the new rule, consumers receive the disclosure after the trade.
"We'd like to see pre-trade transparency so that you know what the markup or markdown will cost and you can compare different broker-dealers," Hauptman said.
Photo by fizkes via Getty Images
Trading costs are much higher when it comes to bonds versus equities.
A 2007 paper by Michael S. Piwowar, one of five commissioners of the SEC, cited research in which he found that the average effective spread on a $20,000 retail municipal bond trade was nearly 2 percent of the price.
In comparison, a similarly sized trade of 500 shares of a $40 stock had a spread of about 80 cents per share or $400, Piwowar found.
Because firms haven't been upfront about the cost of principal trading with bonds, some customers have been under the impression that the transaction is free.
"In this case, the dealer's customers may mistakenly conclude they aren't incurring any trading costs for this bond while, in fact, they are incurring the highest trading costs in the market," Piwowar wrote.
"The lack of transparency allows dealers to obtain a great deal of investable wealth from unsophisticated investors," Piwowar wrote.
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b841cd1ed4e6626c1dfdb591d729d393 | https://www.cnbc.com/2018/05/14/how-to-get-your-piece-of-the-wells-fargo-banking-scandal-settlement.html | How to get your piece of the Wells Fargo banking scandal settlement | How to get your piece of the Wells Fargo banking scandal settlement
Wells FargoRick Wilking | Reuters
For some consumers taken advantage of by one of the nation's biggest banks, Monday is the last day to decline a slice of a big class-action settlement pie.
Wells Fargo customers have until May 14 to opt out of a $142 million settlement. This deadline applies to folks who had unauthorized accounts opened in their name and received a notice saying they have until May to opt out.
The bank, which is busy trying to repair its image, has repeatedly found itself in hot water in recent months. In April, it was fined by federal regulators. And earlier this month, Wells Fargo agreed to pay up following allegations that it failed to promptly disclose details about the fake accounts scandal to investors. According to a class-action lawsuit filed in federal court, its stock was trading at "artificially inflated prices."
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If you believe you were a victim of the incident involving fake accounts, visit wfsettlement.com to file a claim or ask to be excluded from the settlement. You'll have to wait to receive your cut, but there are steps you can take now, like checking your credit report.
As many as 3.5 million credit cards, lines of credit and checking and savings accounts were potentially opened without consent. You could qualify for restitution if between May 1, 2002 and April 20, 2017 you:
Had an account opened without permission.Had an application for an account submitted under your name without permission.Were enrolled in Wells Fargo identity theft protection services.
If you've contacted the feds or the bank about your phony accounts, there's a good chance you're automatically included in the class-action settlement. By now, you should've received a claim form in the mail.
Not sure if you're automatically enrolled in the class-action settlement? Contact the settlement administrator (1-866-431-8549). And if you don't know whether an unauthorized account was opened in your name, call Wells Fargo Account Servicing (1-800-869-3557).
If you aren't automatically considered a class member and you need to file a claim, you must do so online or through the mail by July 7. The deadline — which was initially Feb. 3 — was pushed back to give customers more time to participate in the settlement.
"Wells Fargo and the plaintiffs' attorneys requested the extension to July 7, 2018, to fulfill a request by a group of state attorneys general to allow more time for current and former customers to file claims, and to send additional email and mail notices in order to ensure our outreach is thorough and gives people sufficient time to file claims," says Wells Fargo spokesperson Jim Seitz. "It demonstrates our commitment to make things right."
Victims who paid fees associated with unauthorized accounts may receive a flat-rate fee reimbursement or payment based on the amount they were charged. Credit impact damages may also be provided to customers who ended up with a higher credit card or loan interest rate after the bogus accounts were opened.
If you were automatically enrolled in the settlement and you don't submit a claim, you'll be eligible to receive whatever is left over after other cash benefits are paid out.
Don't expect to get money you're owed right away. Class members won't get paid until appeals are resolved and the court grants final approval of the settlement.
If you endured hardships beyond the scope of what's included in the class-action settlement, consider consulting an attorney. For example, because the settlement is not meant to compensate customers who were denied credit outright, anyone in that boat may be better off challenging the bank on their own.
"If someone knows that they were denied housing or a mortgage or even a job and they were told that the cause of it was because of an account that wasn't theirs, than their damages would be much greater than they're going to get out of this class settlement," says Ira Rheingold, executive director of the National Association of Consumer Advocates.
If you ask to be excluded from the settlement, you won't receive any compensation. You also have the option of remaining a class member and objecting to the terms of the settlement. The deadline for objecting is May 14 (if you received a notice saying that this is your deadline). If you do nothing — and Wells Fargo has no proof that you were actually harmed — you won't be getting anything.
If you think your credit has been damaged, don't wait (especially if you're planning to apply for a mortgage or car loan). Get free copies of your credit reports and check for mistakes. If you find errors, you can dispute them online with each of the reporting bureaus.
"You have to check all three credit reports from all three agencies because sometimes different credit agencies can have different information," says Rachel Kampersal, marketing communications and programs associate at American Consumer Credit Counseling.
If your credit was actually impacted because an account was opened without your consent, file a claim and indicate that you're allowing the settlement administrator to take a look at your credit report. Frequently asked questions note that credit impact damages will be calculated by multiplying the "increase in the cost of credit" by the "probability that your credit score moved into a different tier."
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6948dc481e7c1c198507e54da1d5075a | https://www.cnbc.com/2018/05/14/hsbc-makes-worlds-first-trade-finance-transaction-using-blockchain.html | HSBC says it’s made the world's first trade finance transaction using blockchain | HSBC says it’s made the world's first trade finance transaction using blockchain
Dhiraj Singh | Bloomberg via Getty Images
HSBC claimed on Monday it had performed the world's first commercially viable trade finance transaction using blockchain technology.
The bank issued a letter of credit for U.S. food and agriculture firm Cargill. The trade finance transaction involved a bulk shipment of soybeans from Argentina to Malaysia. The letter of credit was issued from HSBC to Dutch lender ING.
Letters of credit are issued by one bank to another to guarantee that a payment will be received by a seller under a set of conditions. Traditionally this process would take a large amount of time, numerous paper records, and a lot of back and forth between the various parties involved. Blockchain technology promises to change that.
Blockchain, the technology that underpins bitcoin, enables transactions to be recorded across a vast network of computers. In the case of bitcoin, it records all of the transactions that happen on the network, creating a public ledger. Banks have taken the principles behind bitcoin's blockchain – such as the idea of decentralized ledger – and tried to apply it to processes that they are carrying out.
For this transaction, HSBC used a platform developed by blockchain start-up R3 called Corda. R3 works with a consortium of banks to come up with blockchain solutions to a variety of problems.
VIDEO4:4404:44What is Blockchain?CNBC Explains
"The need for paper reconciliation is removed because all parties are linked on the platform and updates are instantaneous," Vivek Ramachandran, head of growth and innovation at HSBC, said in a statement. "The quick turnaround could mean unlocking liquidity for businesses."
HSBC and ING said that the exchange was performed in 24 hours, compared to the five-to-10 days it normally takes to complete such exchanges through a paper-based system.
Proponents of blockchain claim it has the potential to upend various industries. Sectors like trade finance, health care and insurance are thought of as good targets for the use the technology as they rely on long paper trails.
While there have been proof-of-concept transactions performed using blockchain technology, HSBC's was the first that could have commercial applications, a spokesman for the company told CNBC.
Banks have been pouring money into blockchain projects as it is thought that the technology will significantly disrupt the financial services.
While lenders are not fond of the original use case of blockchain — to underpin cryptocurrency transactions — many see practical use for the technology because of its ability to handle massive amounts of data within a transparent, immutable network.
Last month, Santander teamed up with blockchain firm Ripple to create a foreign exchange service that enables same-day international money transfers.
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6a3b90d9808e280f7146bacb142fa50e | https://www.cnbc.com/2018/05/14/joelle-emerson.html | Joelle Emerson | Joelle Emerson
Joelle Emerson is the Founder and CEO of Paradigm, a diversity and inclusion strategy firm that partners with leading technology startups and Fortune 500 companies to build stronger, more inclusive organizations.
Founded in 2014, Paradigm has partnered with companies like Lyft, Pinterest, Slack, and Visa to design and implement effective diversity and inclusion strategies. Paradigm's approach is data-driven and evidence-based: by using data to identify barriers to inclusion and designing solutions grounded in research, Paradigm helps its clients drive measurable change.
Before founding Paradigm Joelle was a women's rights lawyer, where she represented clients in gender discrimination litigation and advocated for local, state, and federal policies to ensure equal pay for women. She is a graduate of Stanford Law School.
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b0c7635e19fa35a161af5020d97efa64 | https://www.cnbc.com/2018/05/14/jp-morgan-recommends-betting-on-amd-for-a-short-term-pop-from-cryptocurrency-conference-hype.html | JP Morgan recommends betting on AMD for a short-term pop from cryptocurrency conference hype | JP Morgan recommends betting on AMD for a short-term pop from cryptocurrency conference hype
A worker holding a wafer at Advanced Micro DevicesNorbert Millauer | AFP | Getty Images
The digital currency conferences this week in New York City present an attractive trading opportunity in AMD, according to J.P. Morgan.
"Over the last three years, AMD has staged significant rallies following the blockchain technology summit, Consensus," J.P. Morgan equity derivatives strategist Shawn Quigg wrote in a note to clients Monday. "We like the reward-risk of owning upside in AMD given its historical returns following the summit, cheap implied volatility and high short interest, which could add a short-squeeze component to the trade."
CoinDesk's Consensus three-day conference started Monday. The conference is now the centerpiece of a full-blown "Blockchain Week NYC," an event run in partnership with the New York Economic Development Corporation.
Quigg said AMD shares rose about 15 percent on average over the last three years during the month after the conference.
As a result, the strategist recommended buying the AMD June $13 strike call option.
A call option gives an investor the right to buy a stock at a certain price during a particular time period. It rises in value as the underlying security's price goes higher.
Cryptocurrency miners use graphics cards based on AMD's and Nvidia's chips to "mine" new coins, which can then be sold or held for future appreciation.
Options trading is typically for sophisticated investors and not for the faint of heart.
AMD shares rose 2.3 percent Monday after the report.
Disclaimer
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705e60bca4e07016e541ce04bea7f318 | https://www.cnbc.com/2018/05/14/jp-morgan-submits-application-for-majority-owned-china-securities-business.html | JPMorgan Chase names a new China CEO | JPMorgan Chase names a new China CEO
Jamie Dimon, chief executive officer of JPMorgan Chase & Co.Giulia Marchi | Bloomberg | Getty Images
J.P. Morgan Chase & Co said on Monday it had appointed Mark Leung as the chief executive of its China business.
A veteran who's been with the bank for 21 years, Leung will manage onshore and offshore activities in the country. He started his career in rates derivatives trading and has held trading roles in emerging Markets, credit hybrids and equity derivatives.
Additionally, JPMorgan announced it had submitted an application to the Chinese securities regulator for setting up a new onshore securities business in which the U.S. bank would own a 51 percent stake.
It's also looking to double its research coverage of China-listed companies across all sectors, the bank said.
The bank's asset and wealth management unit is working on increasing its current joint venture stake to a majority interest, subject to an agreement with its joint venture partner and the relevant authorities, it said in a statement.
The submission of the application to the regulator marks a step towards JPMorgan's return to China securities business after 2016 when it sold its 33 percent holding in a similar venture to its local partner.
— Reuters contributed reporting.
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d837413c989118914c42ffce88c1098c | https://www.cnbc.com/2018/05/14/lee-bo-young.html | Lee Bo Young | Lee Bo Young
Bo leads Uber's Diversity and Inclusion efforts in the company, with our stakeholders, and in the communities where we operate. Bo partners with senior leadership including its CEO, Dara Khosrowshahi, to build a work culture where radically diverse and inclusive teams drive innovation, accelerate growth, and build a work culture and systems were all employees have the opportunity to excel and grow to their highest potential.
Prior to joining Uber, Bo was the first Global Diversity and Inclusion Officer for the Risk and Insurance Services businesses for Marsh and McLennan Companies. Bo also launched and led Aon/Hewitt Associates' Global Emerging Workforce Solutions consulting practice and held diversity leadership roles at Ernst & Young and National Grid. Bo also served as a Director of Advisory Services at Catalyst, the leading non-profit focused on the advancement of women in business. As a consultant and thought leader, Bo has enabled dozens of clients to achieve their diversity & inclusion goals. Past clients include Marriott International, Northern Trust, John Deere, Allstate, Booz & Co., Discover, Aon, Human Rights Campaign, and McKesson.
Bo has an MBA with distinction from New York University's Stern School of Business and a BBA magna cum laude from the University of Michigan's Ross School of Business. She is a frequently sought after speaker and has been featured in The Wall Street Journal, The Huffington Post, MSNBC, Business Insurance, and other media outlets and conferences. She lives in New York City with her husband, daughters, Annabelle and Beatrice, and Betty the dog.
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fbaba7bf15c86f72546d9d21466b1a5e | https://www.cnbc.com/2018/05/14/malaysia-election-airasia-ceo-fernandes-sorry-for-najib-razak-video.html | AirAsia boss says he will 'forever regret' appearing to back Malaysia's Najib before election | AirAsia boss says he will 'forever regret' appearing to back Malaysia's Najib before election
VIDEO1:1601:16AirAsia stock slides as Malaysian markets reopenSquawk Box Asia
In the aftermath of Malaysia's stunning election result, one of the country's most respected business figures has admitted to "buckling" to pressure from the previous government.
AirAsia CEO Tony Fernandes, who enjoys near-rockstar status in the Southeast Asian nation, apologized on Sunday for a flashy, apparent endorsement of then-leader Najib Razak in the run- up to the May 9 general election. Najib was defeated in an unexpected election upset at the hands of Mahathir Mohamad, who was sworn in as prime minister on Thursday.
AirAsia's stock tanked as much as 10 percent on Monday as the Malaysian market re-opened for trading post-election.
Fernandes, dubbed Malaysia's version of Virgin Group magnate Sir Richard Branson, said on Facebook that he made "a grave error of judgement" by appearing in a May 6 video in which he thanked scandal-ridden Najib for AirAsia's growth.
Shortly following that video, Najib tweeted photos of himself with Fernandes on an AirAsia plane that sported the campaign slogan of Najib's long-ruling Barisan National party.
Najib Razak tweet
Those developments prompted fierce backlash from Malaysian netizens. Public anger over Najib's alleged involved in a multi-billion dollar graft case involving state funds was a primary reason underlining the electoral upset of the 64 year-old, who has denied any wrongdoing in the so-called 1MDB scandal.
Fernandes on Sunday said he "foolishly" made the May 6 video, which he described as "fairly neutral and factual," to "appease" Najib's government.
Fernandes also said that the former administration was pushing him to remove Chairman Rafidah Aziz of long-haul carrier AirAsia X and cancel 120 extra flights that were created especially for Malaysians to return home to vote.
VIDEO5:4405:44What happened to Malaysia's 1MDB money?CNBC Explains
The government's displeasure with both those factors placed "intense pressure" on AirAsia, Fernandes explained, admitting that he "buckled at the crucial moment in [Malaysia's] history."
"It wasn't right, I'll forever regret it but it was a decision made at the spur of the moment" to protect the company and the jobs of AirAsia staffers, he said.
Fernandes is simply "re-positioning himself in relation to the new political constellation," commented Vedi Hadiz, deputy director of the Asia Institute at the University of Melbourne.
Links between business and politics remain strong in Malaysia, so the CEO's apology "probably reflects some anxiety that is based on the expectation that the link will continue to be important within this new constellation, even if hopes for fundamental reforms are currently high," Hadiz continued.
AirAsia told CNBC that it would have no comment on the matter.
"Tony is trying to recover from the damage done to both his personal and the AirAsia brand," said James Chin, an expert on Southeast Asia politics at the University of Tasmania. "It was a mistake to do the plane stunt — most Malaysians feel like he overdid it."
Given how intertwined corporate and government affairs are in Kuala Lumpur — major companies typically donate huge amounts to parties during elections — it simply isn't possible for senior executives to disentangle themselves from politics, Chin explained.
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251ee2cdf5b0dd2a29c0d7ec66b5f96b | https://www.cnbc.com/2018/05/14/malaysia-election-medium-term-uncertainty-but-oil-prices-a-positive.html | There's uncertainty for Malaysia after the shock election result, but high oil prices are a plus | There's uncertainty for Malaysia after the shock election result, but high oil prices are a plus
VIDEO3:5003:50What Malaysia's credit future may look like after the electionCapital Connection
Despite caution over medium-term policy uncertainty following Malaysia's historic election result, the risks remain hypothetical for now, one expert said.
In a stunning election victory last week, the Pakatan Harapan opposition alliance beat the ruling Barisan Nasional coalition, which had been in power for the past 60 years.
"The two keywords ... are 'if' and 'could. The rating agencies have said, yes, there's some credit negative aspects to the potential fiscal policy, but it's still some way off," Ashley Perrott, head of pan-Asia fixed income at UBS Asset Management, told CNBC's Nancy Hungerford.
"I think yes, if they follow through with everything they're talking about doing, the infrastructure concerns, the GST (goods and services tax) repeal, that could be credit negative, sure. But I think that's six months before we really get something concrete from the agencies," he added.
The country's new Prime Minister Mahathir Mohamad had pledged during the campaign trail to scrap the unpopular GST and following his victory, added that infrastructure projects committed to by ousted leader Najib Razak will be re-looked.
But Moody's Investor Service had cautioned in a note on Monday that replacing GST with a proposed sales and services tax — without corresponding measures to match revenue collection — could prove to be credit negative for Malaysia.
"There is little clarity on Pakatan Harapan's economic policy agenda, apart from a few specific campaign pledges that are credit negative at the outset, but lack details that would allow a full assessment of budgetary and macroeconomic effects," Anushka Shah, sovereign risk group senior analyst at Moody's Investor Service, said in a note.
But what Malaysia could lose in tax revenues would be diminished by the broad move higher in oil prices — good news for the oil exporter.
"If they were to repeal the GST in an environment where oil prices were actually declining — you go back 12 months, that was the story — that would be much more problematic," Perrott said, adding that oil prices at their current levels allowed for fiscal flexibility for the government.
The yield on the 10-year Malaysian government bond last stood at 4.21 percent after earlier yielding 4.255 percent, its highest since January 2017. Bond yields move inversely to prices.
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eb2ec3afcbc65e2cddaec403cbf07f90 | https://www.cnbc.com/2018/05/14/marco-rubio-slams-trump-reversal-on-chinese-company-zte.html | Republican Sen. Marco Rubio warns: Trump's reversal on China's ZTE is a national security risk | Republican Sen. Marco Rubio warns: Trump's reversal on China's ZTE is a national security risk
VIDEO0:5600:56Rubio says Trump's reversal on ZTE is a national security riskNews Videos
Sen. Marco Rubio on Monday criticized President Donald Trump's pledge to help Chinese technology company ZTE, saying he hopes the president is not "backing down" from his hawkish stance on China.
The Florida Republican's criticism marks the first backlash to the president's effort from a notable lawmaker within his own party. Trump's reversal on ZTE, which he announced in a tweet Sunday, comes amid a high-stakes trade dispute between the world's two largest economies.
In a tweet Monday morning, Rubio argued that the "problem with ZTE isn't jobs & trade, it's national security & espionage." He said telecom companies "can be forced to act as a tool of Chinese espionage."
"We are crazy to allow them to operate in U.S. without tighter restrictions," the Senate Intelligence Committee member wrote.
Rubio tweet: Problem with ZTE isn't jobs & trade, it's national security & espionage. Any telecomm firm in #China can be forced to act as tool of Chinese espionage without any court order or any other review process. We are crazy to allow them to operate in U.S. without tighter restrictions
VIDEO1:3001:30Trump offers concessions to Chinese telecom company ZTESquawk Box
Last month, the Trump administration barred U.S. companies from selling to ZTE, a telecommunications company, for seven years. The ban came in response to the firm shipping American goods to Iran and North Korea. It effectively crippled ZTE.
On Sunday, Trump said he and Chinese President Xi Jinping "are working together" to give ZTE "a way to get back into business, fast." "Too many jobs" were lost in China, the president added. He said he instructed the Commerce Department to "get it done."
Trump tweet: President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!
In a subsequent tweet Monday afternoon, Trump made a vague reference to the ZTE action being "reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi." It is unclear what exactly the president meant.
Trump tweet: ZTE, the large Chinese phone company, buys a big percentage of individual parts from U.S. companies. This is also reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi.
Trump's tweet appeared to muddle comments made by his administration earlier in the day. On Monday, Commerce Secretary Wilbur Ross called ZTE an enforcement issue separate from trade policy. White House spokesman Raj Shah told reporters that Ross' comments reflect the U.S. government's view.
Shah said "this is part of a very complex relationship between the United States and China that involves economic issues, national security issues, and the like." He called it "an issue of high concern for China that's been raised with the U.S. government and with our administration at various levels."
Trump's shift on ZTE appears to be a concession as Chinese Vice Premier Liu He gets set to travel to Washington this week for trade talks. The U.S. and China have threatened one another with tariffs that could damage the American agricultural industry. Trump has repeatedly pledged to punish Beijing for alleged trade abuses and theft of U.S. intellectual property by Chinese companies.
In a separate tweet Monday morning, Rubio wrote that "I hope this isn't the beginning of backing down to China."
The U.S. and China are discussing a potential deal to relieve pressure on ZTE in exchange for Beijing pulling back tariffs on billions of dollars in agricultural products, Reuters and The Wall Street Journal reported.
Trump's pledge to help ZTE already sparked criticism on the Democratic side of Congress. In a statement Monday, Senate Minority Leader Chuck Schumer said Trump is "backing off" his tough actions against China and argued his policy would "make China great again."
House Intelligence Committee ranking member Rep. Adam Schiff, D-Calif., said Sunday that Trump "should care more about our national security than Chinese jobs."
Schiff tweet
VIDEO3:1703:17This trade deal may be what Trump needs to take on ChinaDigital Original
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cf47dfb057800bbaf4f9384fc146e883 | https://www.cnbc.com/2018/05/14/mark-cuban-defends-musk-you-have-to-really-respect-him.html | Mark Cuban defends Musk's leadership: 'You have to really respect him' | Mark Cuban defends Musk's leadership: 'You have to really respect him'
VIDEO1:2501:25Cuban defends Musk's leadership: 'You can't be vanilla all the time'Squawk Alley
Amid hardships at Tesla, CEO Elon Musk has taken heat for recent behavior some have called "bizarre." But billionaire investor Mark Cuban defended Musk's quirks and said he trusts and respects his leadership.
"Unlike other founders...who have their lives all built up into one company, he puts his heart out there -- and he puts his finances out there. You know, people respect Musk for his genius, but you have to really respect him because he puts every cent that he has on the line," Cuban said on CNBC's "Squawk Alley."
Musk hasn't been having the easiest go of it lately. Even as his aerospace startup SpaceX triumphs, his electric car company Tesla has faced an onslaught of setbacks. From delays in Model 3 production to a massive Model S recall, executive departures and recent talks of reorganization, the CEO has readily admitted to spending nights on the factory floor. Earlier this month on a conference call following earnings, in which Tesla performed less poorly than expected, Musk referred to one investor's questions as "boring" and "boneheaded."
"He's either just very much out of patience or plans to never need to raise capital again," Morningstar analyst Dave Whiston said.
Cuban wasn't particularly put off by the earnings call. Instead, he said he thought "the stuff on the conference call wasn't anything at all, just mishegas [craziness]."
"It's okay for [a CEO] to have an attitude. You don't have to be vanilla all the time — that's just life," Cuban said.
What it comes down to is dedication, and according to Cuban, Musk has got plenty.
"[Tesla is] his baby. He sees the vision, he has to execute. You can argue that he is going to need to raise cash, but everything he has is wrapped up in it...And I think for that reason you've got to trust him," Cuban said.
Despite his respect for Musk, Cuban said he isn't "necessarily a buyer" because he is not familiar enough with the industry.
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ebf3d126a04515293ccabf99b3a1b3b3 | https://www.cnbc.com/2018/05/14/mark-cuban-isnt-ready-to-invest-in-apple.html | Mark Cuban isn't ready to invest in Apple: 'I would rather have a lot of cash when things go bad' | Mark Cuban isn't ready to invest in Apple: 'I would rather have a lot of cash when things go bad'
VIDEO1:5701:57Cuban isn't ready to invest in Apple: 'I would rather have a lot of cash when things go bad'Squawk Alley
Billionaire investor Mark Cuban thinks Apple will probably make it to a market cap of $1 trillion — but that doesn't mean he's investing now.
The Dallas Mavericks owner says he is content with his current positions in tech giants Amazon and Netflix.
"We can talk about Apple going to a trillion, and there's no reason why [it] won't," Cuban said Monday on CNBC's "Squawk Alley."
Cuban explained his position, calling Amazon "the best company, best start-up in the world" and saying Netflix is "not far behind."
"I'm not ready to dive-in and put more cash into stocks right now. I'm content to have two big positions that continue to do well. I think they're great companies," he said.
Cuban may be reticent to invest in Apple, but he admires its business. He cited growth in the service business, watch business, applications and market cap as indicators of its prowess. But he also said he hadn't seen an opportunity to invest and doesn't want to risk it.
"[Invest] when there's blood in the streets," Cuban said.
"I would rather have a lot of cash on hand for that time when things go bad," he added.
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311820ed7847e49875cc2d87552b161c | https://www.cnbc.com/2018/05/14/nafta-math-may-not-add-up-to-more-us-auto-jobs.html | NAFTA math may not add up to more US auto jobs | NAFTA math may not add up to more US auto jobs
(L-R) Canadian Foreign Affairs Minister Chrystia Freeland, U.S. Trade Rep Robert Lighthizer and Mexican Secretary of Economy Ildefonso Guajardo Villarreal arrive at a joint news conference after a NAFTA trilateral ministerial press event in Washington, October 17, 2017.Yuri Gripas | Reuters
Trump administration demands in NAFTA trade negotiations meant to push auto jobs back to the United States may not be enough to spark a shift in where automakers build cars and trucks.
New math to determine what qualifies as vehicle content, what limits apply to allow tariff-free auto imports and how long companies would have to comply under a new NAFTA agreement will likely not move the needle for Detroit automakers in particular, industry executives and supply chain experts said.
Automakers are unlikely to uproot billions of dollars of investments in plants and supply chains. And those that cannot comply with standards for passenger cars could simply pay tariffs of around $800 to $900 per vehicle and buy low-cost parts from Asia to offset the cost, industry experts said.
"Broadly speaking the (tariff) increase isn't big enough to make a wholesale change," said Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners. "No one is likely to shut down an active factory in Mexico and build a new one to replace that in the U.S."
Tough U.S. proposals on autos are meant to bring back U.S. manufacturing jobs and central to the Trump administration's approach to renegotiating the North American Free Trade Agreement between Canada, Mexico, and the United States.
General Motors, soon to be the only Detroit Three automaker building pickup trucks in Mexico, is confident it could comply with content requirements for trucks the United States proposes without shifting production, a person familiar with the company's plans said.
But GM's Mexican-made trucks already have a significant share of their value, such as engines, produced in the United States at United Auto Workers union-represented factories, and GM would get another boost if it is allowed to tally engineering done in Michigan.
GM is retooling a high-volume factory to build a new generation of large Chevrolet and GMC pickups in Silao, Mexico. Pickup trucks that do not have enough U.S. or North American content under NAFTA rules could be hit with a crippling 25 percent tariff.
Last year GM churned out more than 400,000 large pickup trucks from Silao, more than 40 percent of its 2017 U.S. pickup truck sales.
Fiat Chrysler Automobiles Chief Executive Sergio Marchionne said on Friday a revised treaty could prompt FCA to "redirect" some Mexican production but would not cause it to further dial back its presence in Mexico.
In January FCA had said it would shift production of heavy-duty pickup trucks from Mexico to Michigan in 2020 to reduce the profit risks should the United States pull out of NAFTA.
Senior U.S., Canadian and Mexican officials on Friday ended a week of talks without a deal to modernize NAFTA, agreeing instead to resume negotiations soon, ahead of a deadline next week.
The United States wants 40 percent of the value of light-duty passenger vehicles and 45 percent of a truck's content to be built at hourly wages of $16 to qualify for tariff-free import from Mexico.
Those demands are aimed at preserving relatively higher-wage U.S. and Canadian production and pressuring Mexico's low auto wages.
Mexico wants 70 percent of a vehicle's content to be made within North America, less than the 75 percent U.S. negotiators propose.
Automakers that do not comply with tougher U.S. or North American content and wage rules, if adopted, could face 2.5 percent tariffs on cars or sport utility vehicles shipped to the United States from Mexico. That may be a level of pain they can live with.
Automakers producing sedans, SUVs, and crossovers in Mexico include Ford Motor, Toyota Motor, Mazda Motor, Nissan Motor, Honda Motor, and Volkswagen.
The U.S. proposal would allow automakers to count salaries for engineering, research, sales, software and product development jobs, a provision favoring Detroit automakers versus foreign brands.
And companies would have two, four or nine years to comply, depending on the specific condition involved.
Still, some automakers are more of a question mark, especially when it comes to trucks. Toyota plans to expand production in Mexico of its Tacoma pickup trucks, part of a realignment of its North American manufacturing that includes a new $1.6 billion assembly plant in Alabama.
It also makes Tacomas in San Antonio, Texas, so could in theory switch production. The automaker declined to comment.
And the Trump administration proposals could complicate matters for electric vehicles and self-driving cars automakers want to build in Mexico. The U.S. proposals call for 75 percent of an electric or autonomous vehicle's value to be made within North America to avoid tariffs.
Since much of those vehicle's value can come from batteries made overseas, that means automakers must make up for the content largely on the human side.
At nine years, electronic vehicles are subject to the longest period until they must comply.
"EVs and AVs have so much electronic content and there is no electronics industry here," said Kristin Dziczek of the Center for Automotive Research in Ann Arbor, Mich. "Nine years is not enough to build up an electronics industry to that scale."
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8fb28cdc6a833f11d726b14efd397c3d | https://www.cnbc.com/2018/05/14/rba-not-lifting-rates-as-inflation-and-wages-stay-low.html | Australia's central bank sees little reason to lift rates as inflation and wages stay sluggish | Australia's central bank sees little reason to lift rates as inflation and wages stay sluggish
Roslan Rahman | AFP | Getty Images
Australia's central bank saw little reason to lift rates this month as inflation remained below target and likely to remain subdued in the face of sluggish wage growth, minutes of its May policy meeting showed.
The Reserve Bank of Australia's (RBA) Board agreed there was not a "strong case" for a near-term adjustment in monetary policy, Tuesday's six-page minutes showed.
The Board still agrees the next move was more likely up than down, assuming the economy gathered momentum as expected.
The RBA last cut rates to 1.5 percent in August 2016, notching up the longest period without a change in modern history. Financial markets are wagering this steady spell could last well into 2019.
Crucially, wage growth and inflation has undershot expectations for some years and showed little sign of heating up soon.
Data due Wednesday is likely to show wage growth stayed near all-time lows at an annual 2.1 percent in the quarter-ended March, even as brisk job gains are expected on Thursday.
RBA Deputy Governor Guy Debelle said in a speech ahead of Tuesday's minutes that Australia's wage growth has "troughed" and there are some tentative signs of pressure emerging. However, there is a risk it may take a lower unemployment rate than currently expected to generate a sustained move higher, he added.
Australia's jobless rate has remained stubbornly stuck around 5.5 percent and levels of underemployment — those already working but wanting more hours — are near historical highs, a major factor weighing on wages.
Indeed, the RBA expects the unemployment rate to stay there by year-end. It is seen ticking lower to 5.25 percent by 2020.
"Stronger (economic) growth was expected over the following couple of years, which could reduce spare capacity in the economy and lead to a further gradual decline in the unemployment rate," the RBA said.
"The increase in wages growth and inflation was expected to be gradual however because spare capacity in the economy was expected to be reduced only slowly."
Policymakers remained upbeat about the outlook for Australia's A$1.8 trillion economy, expecting activity to pick-up to a little above 3 percent over the next two years after a somewhat disappointing 2.4 percent outcome last year.
Household consumption, which has been a key area of uncertainty over the past year, had grown "solidly" last year, the RBA said, adding recent data on retail and motor vehicle sales suggested the momentum has continued in early 2018.
The RBA said stricter lending criteria by banks had helped in containing the build-up of risk on household balance sheets.
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34318b1989264d4fd47eb3c373c09eff | https://www.cnbc.com/2018/05/14/stocks-making-the-biggest-moves-premarket-wmt-jpm-hsbc-googl.html | Stocks making the biggest moves premarket: XRX, F, WMT, JPM, HSBC, GOOGL & more | Stocks making the biggest moves premarket: XRX, F, WMT, JPM, HSBC, GOOGL & more
Trader on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
Check out the companies making headlines before the bell:
Xerox – Xerox abandoned its planned $6.1 billion deal with Japan's Fujifilm, in which Xerox would be combined with the Fuji Xerox joint venture. The move is part of a settlement with major investors Carl Icahn and Darwin Deason, who felt that Xerox was significantly undervalued in that deal. Fujifilm said it was considering its options, including legal action to seek damages.
Ford Motor – Ford plans to resume production of its F-150 pickup trucks on Friday, May 18, at its Dearborn, Michigan, and Kansas City plants, although that could change. F-150 plants stopped production last week because of parts shortages caused by a fire at a factory of a key supplier.
Walmart – Walmart said it may take India-based e-commerce company Flipkart public in as soon as four years, according to a regulatory filing. Walmart announced last week it would pay $16 billion for a 77 percent stake in Flipkart.
JPMorgan Chase – The bank applied to China's securities regulator to set up a majority-owned securities business in that country.
HSBC – HSBC said it performed the world's first trade finance transaction using blockchain technology. The bank said the transaction was done on behalf of food and agriculture giant Cargill.
Alphabet – Alphabet's Waymo autonomous driving technology unit has hired Tesla executive Matthew Schwall. Schwall had been Tesla's main contact on technology matters with U.S. safety regulators.
State Bank Financial – State Bank agreed to be bought by fellow regional bank Cadence Bancorp in a $1.4 billion all-stock deal.
KKR – The private-equity firm is increasing its investment in Toorak Capital Partners, a firm that buys loans made to home flippers. KKR is upping its investment to $250 million from $75 million, according to The Wall Street Journal.
NXP Semiconductors – China regulators have resumed their review of Qualcomm's deal to buy NXP, according to a Bloomberg report. China is the only market in which approval for the deal has not yet been received.
Tailored Brands – The men's apparel retailer was upgraded to "buy" from "hold" at Jefferies, saying the company has sustainable sales momentum as well as an underappreciated opportunity in custom clothing.
Western Digital – J.P. Morgan Securities began coverage on the hard disk drive maker with an "overweight" rating, noting its prominent market share positions in data storage solutions and solid-state drives.
Brinker International – The restaurant operator said a data breach may have compromised some payment card information at its Chili's chain. Brinker is still working to evaluate the extent of the breach.
Thomson Reuters – The financial information provider was upgraded to "buy" from "hold" at Canaccord Genuity, which said investors overreacted to an increase in corporate costs in the company's latest earnings report. The stock fell nearly four percent Friday following the releases of quarterly numbers.
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4f99caf36de14a6d84e101dde4c64f83 | https://www.cnbc.com/2018/05/14/stocks-set-to-rally-at-the-open-giving-dow-a-shot-at-extending-7-day-win-streak.html | Stocks set to rally at the open, giving Dow a shot at extending 7-day win streak | Stocks set to rally at the open, giving Dow a shot at extending 7-day win streak
President Donald Trump said that he will help Chinese tech company ZTE Corp "get back into business, fast," after being crippled by a U.S. ban. As one of the world's largest telecom equipment makers, ZTE relied on U.S. companies for components. (Reuters)* Top White House officials feud over China (Axios)* US firms given forum to object to China tariffs (WSJ)
House Speaker Paul Ryan wants to be notified on a new NAFTA trade deal by this Thursday to give the current Congress a chance to pass it. Mexico's top trade official said time was running short to meet such a deadline. (CNBC & Reuters)
National Democrats have been embracing more moderate leaders, including ones that do not criticize Trump by name. Dems hope they will give the party a chance to compete in states like Utah and Kansas for the midterm elections. (NY Times)* Blue districts have higher uninsured rates and more poverty (Axios)
Cleveland Fed President Loretta Mester told CNBC that the United States should keep its debt-to-GDP in mind before things "get out of hand." Current public debt-to-GDP is 75 percent but is expected to double by 2047.
Prince Turki Al-Faisal of Saudi Arabia, a former chief of Saudi Arabia's intelligence agency, warned that the Trump administration's decision to shift its embassy in Israel from Tel Aviv to Jerusalem will make the Middle East a more dangerous place. (CNBC)
Ford Motor (F) plans to resume production of its F-150 pickup trucks on Friday, May 18 at its Dearborn, Michigan and Kansas City plants, although that could change. F-150 plants stopped production last week because of parts shortages caused by a fire at a factory of a key supplier. (CNBC)
Apple (AAPL) CEO Tim Cook distanced himself from his tech peers, including Facebook (FB) in a commencement speech that he delivered over the weekend. He said that Apple takes a different path when it comes to data privacy. (CNBC)
Walmart (WMT) said it may take India-based e-commerce company Flipkart public in as soon as four years, according to a regulatory filing. Walmart announced last week it would pay $16 billion for a 77 percent stake in Flipkart. (CNBC)
JPMorgan Chase (JPM) applied to China's securities regulator to set up a majority-owned securities business in that country.
HSBC (HSBC) said it performed the world's first trade finance transaction using blockchain technology. The bank said the transaction was done on behalf of food and agriculture giant Cargill.
Alphabet's (GOOGL) Waymo autonomous driving technology unit has hired Tesla (TSLA) executive Matthew Schwall. Schwall had been Tesla's main contact on technology matters with U.S. safety regulators.
State Bank Financial (STBZ) agreed to be bought by fellow regional bank Cadence Bancorp (CADE) in a $1.4 billion all-stock deal.
Marvel's "Avengers: Infinity War" was the number one movie at the box office for the third straight weekend, making it the fifth-highest grossing global film of all time. The big news was in China, however, where it debuted at a massive $200 million. (Variety)
The name "Alexa" has become a less popular baby name in the United States since Amazon started widely selling its Echo speaker in 2015. "Siri," Apple's virtual assistant, has never been a popular name in the U.S. (Recode)
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f0fd4bc3543d237f508a4f5e74e07198 | https://www.cnbc.com/2018/05/14/stocks-shrugged-off-sell-in-may-and-are-now-setting-up-for-a-summer-rally.html | Stocks shrugged off 'sell in May' and are now setting up for a summer rally | Stocks shrugged off 'sell in May' and are now setting up for a summer rally
Getty Images
Even if stocks hit a few speed bumps, they are showing signs of renewed strength that could propel the market higher in the summer months.
Instead of talk about stocks bottoming, there's more chatter recently about new highs, as small caps flirt with their former highs and money is jumping in to tech after this spring's washout.
"I think the incremental positive is we broke the string of lower highs that's been in place since January. Our take is the correction that began in January is coming to an end," said Ari Wald, technical analyst with Oppenheimer.
A number of analysts say ignoring the "sell in May" phenomena this year should be a good thing.
"I think you're seeing leadership reassert. Twenty-five percent of the market cap — tech — is now doing better. The fact we've seen small-cap outperformance is reflective of a market that does seemingly want to take on some risk," said Keith Parker, chief U.S. equity strategist with UBS.
Last week, investors "moved back to an old friend: tech," wrote Jefferies analysts. Tech ETFs took in $774 million last week, while the QQQ, representing the Nasdaq 100, pulled in $1.3 billion, the analysts noted. More than $1 billion also poured into small-caps.
Parker also said the market stands to gain going into the summer simply on the sheer power of corporate buybacks. Buyback announcements are up 80 percent this year, and the actual buybacks are up about 50 percent, according to UBS. Corporations should be buying stock back for the next few weeks until the quiet period ahead of earnings in June, he said.
The market is not without risks, and those things that have been worrying it — trade wars, higher interest rates, geopolitical tensions — have not gone away. Oil prices could become a brake on market gains at some point, but so far stocks have taken a near four-year high in oil prices in stride. But if Middle East tensions set off an oil price spike, that would be a worry for stocks.
Analysts say the fears about trade wars, however, seem to be fading, in part because it appears there will be a new NAFTA agreement.
Also, President Donald Trump appears to have eased his stance toward China, after his weekend tweet on ZTE, and there are now signs the two countries are moving toward a deal that could give the company a reprieve from U.S. sanctions.
The more positive news on trade helped push stocks higher Monday. But the small-cap Russell 2000 ran against the trend, giving back gains after touching an intra-day high of 1,614, just a point below its all-time high. The index closed down 6 at 1,600.
The was higher on Monday by 2 points, at 2,730, and is now up 2.1 percent year-to-date, though 5 percent below its all-time high. Energy led with a 0.6 percent gain on higher oil prices, and technology was flat. In the last month, S&P technology has risen about 6 percent, while energy is up about 8 percent.
Ryan Detrick, LPL Financial senior equity strategist, said the fact that the S&P 500 turned positive for the year during the month of May is a positive signal in itself. He looked back at the 36 times the S&P was positive for the year on a total return basis at some point during the month of May. He found that it ended the year higher, on a total return basis, 35 out of the 36 times.
Detrick said it could be an easy leap for the S&P 500 to reclaim its old high.
"We think it definitely could happen sometime this summer. The small-caps leading is very powerful. The last time we saw something like this with the small-caps breaking away was January 2013 ... that was not the worst time to be bullish over the next six months or so," he said.
He said the market should be able to defy the old adage "sell in May," a warning that comes with concerns that the second part of the year, specifically between May and October, is weaker.
Robert Sluymer, technical analyst at Fundstrat, said the market could see a brief pause or move lower before a summer rally. But he also sees the market getting back to its uptrend after the winter and spring correction.
"I do think the S&P retests its old highs, as we move into Q2 and into Q3. Beyond a near-term pullback, you're going to see large-caps retest their old highs," Sluymer said.
But Wald sees weakness later in the summer after weeks or months of gains. As investors consider the mid-term elections in late summer, stocks could get choppy but resume their move higher later in the year.
"There are some things that could jump in the mix and throw cold water on market sentiment, primarily politics," said Katie Nixon, chief investment officer at Northern Trust's Wealth Management unit. "We're coming up to midterm elections." She said investors could worry that a change in congressional makeup, ending GOP majorities, would also reverse or end some of Trump's market-friendly policies.
"There's some potential noise that could work its way into the system. If you look beyond the summer, we're talking about healthy earnings" as well as a Fed that will not be moving quickly. "That's typically a really good environment for risk assets," said Nixon.
Parker said other positives are that inflation is relatively contained, so the Fed won't be pushed to hike interest rates more rapidly. "Growth is picking up through the third quarter as fiscal stimulus works its way through, and earnings continue to deliver and corporate buying is strong," he said.
He said even with the 23 percent growth in first-quarter earnings, there have not been that many upgrades to the second, third or fourth quarters, even to just reflect the base effect of first-quarter gains, so there could be earnings beats that continue to boost the market.
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