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fddc95b8de85016618b0d1a999df2545 | https://www.cnbc.com/2018/07/02/tariffs-kick-food-beverage-companies-that-are-already-down.html | Kick 'em while they're down: Tariffs hit struggling US food, beverage companies Pepsi, J.M. Smucker, Campbell Soup | Kick 'em while they're down: Tariffs hit struggling US food, beverage companies Pepsi, J.M. Smucker, Campbell Soup
Cans of Campbell's soup are displayed on a shelf at Marinwood Market on November 21, 2017 in San Rafael, California. Getty Images
American food and beverage companies were already struggling before Canada and the European Union levied steep tariffs in recent weeks on everything from whiskey to ketchup.
Canadian tariffs on $12.6 billion in U.S. goods took effect Sunday, a little more than a week after the EU implemented its own. Mexico has announced that it will increase its current tariffs on cheese and pork, effective Thursday. The new duties are retaliatory moves to the Trump administration's June 1 tariffs on imported steel and aluminum products. China will also implement its own tariffs against the U.S. this Friday.
The tariffs put additional pressure on manufacturers in an industry that already has thin profit margins and is juggling rising costs for raw materials, increased fuel and transportation expenses and price-sensitive consumers who are resistant to paying more without meaningful wage growth.
"The problem right now is while we're seeing inflationary impact in the goods, in currency changes and because of tariffs, there's not much inflationary pass-through that you can do in pricing," former Heinz CEO Bill Johnson said Tuesday on "Squawk on the Street."
Canada's levy on soups is expected to hit Campbell Soup particularly hard.
"With a 10 percent tariff on soups and broths and tomato products — representing the core of Campbell's products that are sold in Canada and made from both U.S. and Canadian ingredients — Campbell estimates the economic impact to our Canadian business to be significant," company spokesperson Alexandra Sockett said in an email to CNBC. "We are evaluating ways to offset the potential tariff impact and working closely with our customers."
The new taxes on food products follow on the Trump administration's tariffs on imported steel and aluminum, 25 percent and 10 percent, respectively, which are also expected to squeeze the company's profits. The tin plate steel used to make Campbell Soup cans accounts for the New Jersey-based company's largest outlay for materials.
Campbell’s CFO, Anthony DiSilvestro, in May called out the expected squeeze from tariffs as having a likely impact on the company’s earnings for its fiscal year beginning July 30.
"At this stage, given what we know about accelerating cost inflation in part due to the anticipated impact of import tariffs and the continuing headwind on transportation and logistics cost, we expect our margins will be down in fiscal 2019," DiSilvestro said at the time.
That pressure comes as Campbell is already grappling with rising transport and logistics costs, For its 2018 fiscal year, which ends July 29, it expects earnings to drop by roughly 5 percent.
Although peanut butter was originally on Canada's list, the country spared the sandwich spread. But the EU's import tax on about $3.4 billion in U.S. goods took effect June 22 and included a 25 percent levy on peanut butter. While the product is not nearly as popular in Europe as in the U.S., the penalty represents a symbolic strike against the U.S.
J.M. Smucker, the parent company to the most popular American peanut butter brand Jif, had already hit a rough patch earlier this year.
The company's shares fell to their lowest point since October 2014 after it reported weak earnings for the fiscal fourth quarter on June 7. Canada's announcement that peanut butter and jellies could potentially be taxed placed additional pressure on the company. In the end, Canada decided to tax only strawberry jam.
Smucker missed Wall Street estimates by 25 cents a share as consumer food sales slid 2 percent during the three months ended April 30. Higher transportation and other costs also led the company to raise the prices of several products, including its trademark Jif peanut butter.
"Our teams are actively assessing the potential impact to our business and continue to monitor the fluidity of the tariffs issue," said Smucker spokeswoman Maribeth Burns. "Our products are primarily distributed in North America, so we have minor export business to Europe."
For PepsiCo — which owns Tropicana, the largest American orange juice brand — a Canadian tariff of 10 percent on orange juice comes as Americans' taste for its eponymous soda is waning.
CEO Indra Nooyi told analysts in a first-quarter earnings call that the North American beverages division is working through "some challenges." Those challenges include the decline in soda sales and rising operational costs across the sector.
PepsiCo did not return a request for comment.
Correction: This story has been corrected to reflect that Campbell CFO Anthony DiSilvestro did not blame the drop in the company’s earnings this fiscal year on the anticipated impact of new tariffs.
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65190013f4b5468ceb739e25fc43052f | https://www.cnbc.com/2018/07/03/bank-of-england-might-raise-rates-faster-than-expected.html | Bank of England hawk says UK rates may rise faster than the markets are expecting | Bank of England hawk says UK rates may rise faster than the markets are expecting
The Bank of England (BOE) might surprise markets with a faster increase in interest rates than is currently expected, a member of the central bank's Monetary Policy Committee told CNBC Tuesday.
Market players have priced in a little bit more than one rate hike over the next 12 months. But, according to the BOE's Michael Saunders, this might be too cautious.
"If the economy plays out as I expect, it may be that rates need to go up a little faster than that," Saunders told CNBC's "Street Signs" in reference to market expectations.
VIDEO4:3104:31BOE’s Saunders: Investment has grown at a modest pace despite BrexitStreet Signs Europe
Saunders, who's described as one of the more hawkish members of the central bank and actively votes for rate hikes, also said: "My expectation, conditioned on Brexit unfolding in sort of a smooth and gradual way, the economy will continue to grow at around the pace we have seen over the last couple of years ... (I) expect the jobless rate to fall a little further; and pay growth will pick up a bit.”
“Against that background, I think that yes, rates might need to rise a little faster," he added.
VIDEO3:0403:04BOE’s Saunders: Trade jitters not having major effect on export growthStreet Signs Europe
At the bank's last meeting in June, members decided to keep rates unchanged at 0.5 percent. However, the details of the decision showed that three out of the nine policymakers were in favor of a rate increase to 0.75 percent.
Some analysts believe that this split vote could mean a rate increase as early as next month.
However, Saunders highlighted that even if rates go up at a faster pace than markets expect, this will be done in a gradual way.
"The general picture is still limited and gradual, not too far and not too fast," he said.
VIDEO4:3104:31BOE’s Saunders: Investment has grown at a modest pace despite BrexitStreet Signs Europe
Saunders admitted that rising trade barriers could bring problems to the U.K. economy, which has relied significantly on exports over the last few decades. Higher duties could lead to less demand for U.K. products, ultimately restricting the economy.
"The U.K.’s a very globalized economy, large exporter, and also large foreign direct investment in the U.K. And so swings in global growth have a big effect on the U.K. If you were to get a retreat from freer global trade that also could affect the U.K. growth outlook," Saunders told CNBC.
However, he pointed out that, to date, the data has been positive and there are yet no signs that rising tensions in global trade have dented the U.K. economy.
"So far, in the surveys of export orders, it looks as if what we’ve seen externally is not significantly, not having a major effect, on U.K. export growth. But clearly it’s a thing which we are keeping a close eye on."
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c571c971c1af7614cfc5f15dec19fa7d | https://www.cnbc.com/2018/07/03/drinking-coffee-could-help-you-live-longer-study-says.html | Drinking as many as eight cups of coffee a day could help you live longer, study says | Drinking as many as eight cups of coffee a day could help you live longer, study says
Andreas Solaro | Getty Images
Drinking coffee could boost your chances of a longer life, research shows, even for those who consume as many as eight cups a day.
In a study of around half-a-million British adults, coffee drinkers were found to have a slightly lower risk of death over a 10-year follow-up period than non-coffee drinkers.
The apparent longevity boost comes as yet another piece of good news for coffee lovers, with health benefits recorded in drinkers of instant, ground and decaffeinated coffee. The study is also the first of its kind to suggest health benefits in people with so-called genetic glitches affecting how their bodies react to caffeine.
Health experts warned people should not start drinking coffee, or increasing their intake, for medical reasons. They also warned too much coffee for women during pregnancy could be harmful.
Researchers at the National Cancer Institute (NCI) used data from people taking part in a genetic study called the U.K. Biobank. The participants of that study volunteered to give blood and answer detailed health and lifestyle questions.
For the latest study, published Monday in the Journal of the American Medical Association’s JAMA Internal Medicine, NCI researchers analyzed information provided by approximately 500,000 people, who answered questions about coffee consumption, smoking and drinking habits, medical history and more.
VIDEO3:4503:45Lavazza: Literacy around coffee and food is growingSquawk Box Europe
Around 14,200 of those same people died in the 10-year follow-up period. However, the researchers found people were more likely to live longer with nearly every level and type of coffee consumption.
Overall, coffee drinkers were found to be about 10 percent to 15 percent less likely to die than non-coffee drinkers during a decade of follow-up checks. The differences recorded regarding the amount of coffee consumed and genetic variations were minimal.
Other studies have claimed substances in coffee might reduce inflammation and improve how the body uses insulin, which could decrease the likelihood of developing diabetes.
Late last year, researchers at the University of Southampton in the U.K. found people who drink three or four cups of coffee every day could significantly reduce their chances of early death.
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43c47a2808e355637cc62592a9fc791d | https://www.cnbc.com/2018/07/03/fireworks-companies-are-worried-on-the-fourth-of-july-about-trade-war.html | Fireworks companies are celebrating the Fourth, but they too could get caught in the middle of the trade fight | Fireworks companies are celebrating the Fourth, but they too could get caught in the middle of the trade fight
Fireworks explode over Washington, DC. Paul J. Richards | AFP | Getty Images
As the U.S. gets set to celebrate its 242nd birthday with multicolored fireworks bursting in air, the suppliers of those pyrotechnics are starting to worry about whether they'll get stuck in the middle of a trade war.
So far, the Trump administration has not included the $1.24 billion fireworks industry on its list of China tariff targets. But as tensions intensify, China's standing as by far the global leader in fireworks exports might make too rich a target to pass up.
Bill Weimer, vice president of Phantom Fireworks, one of the nation's leading distributors, said he's anticipating "gangbusters" sales for the holiday, but is concerned about the future.
"The industry is definitely worried about it," he said. "It hasn't happened yet, and we hope it doesn't."
VIDEO0:4300:43Before the fireworks, Macy's kicks off the holiday by ringing the closing bellBell Ringer
The concern comes just a few days before a sweeping set of U.S. tariff targets against Chinese imports takes effect. While fireworks indeed are expected to remain off the radar screen for now, a subsequent list of $200 billion in products that the administration is compiling could include just about anything.
Distributors have been stocking up lately as the Fourth of July gets closer and trade tensions accelerate.
Seaborne shipments increased 37.8 percent in May and June, according to Panjiva Research and S&P Global Market Intelligence. Imports in the first four months of the year actually had declined 5.2 percent, leading to speculation from Panjiva that the late burst may have been caused by "concerns over duties on imports from China."
"Should duties eventually be forthcoming leading buyers from China including Jake’s Fireworks, American Promotional and Phantom will need to decide whether to raise consumer prices or try and find alternative supplies," Panjiva reported.
Source: Panjiva, S&P Global Market Intelligence
Industry professionals, though, say the jump in imports may have come from seasonal factors as well as a delay in exports from earlier in the year.
Mike Baker, general counsel at Jake's Fireworks, said he remains optimistic that the industry will escape becoming a casualty in the U.S.-China trade skirmish.
"No one likes tariffs on their products," Baker said. "It's a remote possibility. What they're looking for is something with a constant and immediate feedback. Tariffs on fireworks now wouldn't have any impact until next season. All our imports for this season are in place."
However, distributors have seen the headlines of what other companies hit hard by the tariffs have been doing. Should the industry be targeted, they'll likely pass the costs on.
China provides most of the imported fireworks to the U.S. — 94.7 percent of the $273 million in total imports through April, according to Panjiva and S&P. The country exported $719.7 million globally in 2017, or 85.6 percent of the global total; the U.S. by comparison exported just $6.8 million, according to WTEx.
"It depends on what it is. Probably we'd do what everybody else would do, and that's unfortunately pass it on to the consumer," Weimer said. "You read about [Harley-Davidson], and they talked about tariffs increasing the costs to their customers by a couple thousand dollars a motorcycle. That's a pretty hefty increase."
WATCH: Trump considers pulling the U.S. from the World Trade Organization.
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77563fc580cf41d9a3c6d6853b4c6c96 | https://www.cnbc.com/2018/07/03/htc-cuts-1500-workers-in-taiwan.html | HTC is cutting a fifth of its workforce as it struggles to gain an edge over rivals | HTC is cutting a fifth of its workforce as it struggles to gain an edge over rivals
A view of the HTC company logo on their stand during the Mobile World Congress on March 1, 2017 in Barcelona, Spain.Cros Garcia | Corbis | Getty Images
It was once a powerhouse in the cellphone marketplace, supplying a tenth of the world’s smartphones in 2011.
Now, after consecutive financial losses, HTC is cutting a fifth of its global workforce.
The company said it was laying off 1,500 manufacturing workers in Taiwan, its home country, in an effort to “realign” resources. It had 7,322 employees at the end of March, according to data on the firm’s website.
"Today's reduction in manufacturing workforce announced by HTC is a decisive step in the realignment of resources across the organization, and will allow more flexible operations management," the firm said in a statement. "The plan... will be completed by the end of September."
HTC’s annual revenues fell 46.03 percent in May, and 55.47 percent the previous month, according to the firm’s website.
The company struck a $1.1 billion deal with Google in September last year that saw 2,000 HTC employees join the U.S. firm. HTC, known for its One flagship phone series, manufactured Google’s Pixel. The deal was part of Google’s aim to boost its hardware business.
The smartphone market has become a fiercely competitive one, with industry titans Apple and Samsung being the two dominant global forces.
HTC has been piling resources into virtual reality, an industry thought to be worth billions, with its own VR headset, the HTC Vive.
Shares of HTC, which is listed in Taiwan, closed 6.7 percent lower on Tuesday.
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1a9be1755051de738a55e5f956f7a970 | https://www.cnbc.com/2018/07/03/tesla-skipped-a-brake-and-roll-test-in-rush-to-hit-model-3-targets.html | Tesla stopped a 'brake and roll' test as it pushed to hit Model 3 goals | Tesla stopped a 'brake and roll' test as it pushed to hit Model 3 goals
VIDEO0:5200:52Tesla eliminated brake tests in final days of Model 3 productionClosing Bell
As it pushed to hit its electric vehicle production targets for the quarter, Tesla decided to skip "brake-and-roll" testing for its Model 3 sedans in its Fremont factory.
The news was first reported by Business Insider.
The company managed to meet a self-imposed deadline to produce 5,000 Model 3 cars in a week after several quarters of missing its goals.
But Tesla's stock plunged by more than 7 percent on Tuesday. Like other auto makers, the company is facing tariffs that will take effect on Friday. And, yesterday CFRA downgraded the stock from hold to sell, saying the company's "burst" production rate for its Model 3s won't be sustainable.
Tesla characterizes the brake-and-roll tests it recently suspended as redundant. The company told CNBC:
“Every car we build goes through rigorous quality checks and must meet exacting specifications, including brake tests. To be extremely clear, we drive *every* Model 3 on our test track to verify braking, torque, squeal and rattle. There are no exceptions.”
It has not yet said whether or when the tests may be reinstated.
According to Tesla, workers at its Fremont, California factory also conduct alignment checks on the GA3 (or General Assembly 3) line using a system that was designed in-house.
All vehicles have their brakes and alignment tested on-site after they're fully assembled and before they leave the Fremont factory to go to a service or delivery center, the company confirmed.
Tesla has also changed other processes to speed up production. For instance, the New York Times reported, Tesla reduced the number of spot welds use in the Model 3's underbelly by 300, or about 6 percent.
VIDEO4:3204:32It's a positive sign Tesla feels they don't need the brake test: Gene MunsterClosing Bell
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f2748daa01d8e4508ed8cb3a7cb22f21 | https://www.cnbc.com/2018/07/04/world-cup-2018-russia-eight-things-we-learned-from-the-first-knockou.html | World Cup 2018 | World Cup 2018
If the World Cup in Russia has taught us anything, it is that possession is no longer the law in soccer and what was once deemed the only route to global glory is seemingly now a shortcut out of the tournament.
David De Gea of Spain fails to stop the penalty of Fedor Smolov of Russia during a penalty shootout as part of the 2018 FIFA World Cup Round of 16 match at Luzhniki Stadium on July 1, 2018 in Moscow. Quality Sport Images | Getty Images
Spain averaged 69 percent of the ball in its four games, peaking with a 75 percent share in its last-16 clash with Russia, according to FIFA statistics.
It did not translate into goals or glory, however, as the team was sent packing on penalties having run out of ideas against the host nation, amassing over 1,000 passes in the 120 minutes, but only managing nine shots on target.
David de Gea has a big reputation in the Premier League at Manchester United, but the Spain goalkeeper conceded six goals from seven shots faced at this World Cup.
It was, in fact, his Russian counterpart Igor Akinfeev who emerged the hero, saving twice in the penalty shootout as Russia continues to defy its tag as the lowest ranked team in the competition.
Kylian Mbappe of France celebrates after scoring his team's third goal during the 2018 FIFA World Cup Russia Round of 16 match between France and Argentina at Kazan Arena on June 30, 2018 in Kazan, Russia. Robert Cianflone - FIFA | Getty Images
Argentina fared little better, having struggled through its first three matches and scraped into the knockouts, where they were dispatched by France in the last 16, ending the tournament with a 64 percent possession average.
French forward Kylian Mbappe is still only 19, but his two goals and all-round performance overshadowed Lionel Messi, as France produced its best performance so far at this World Cup.
The Paris Saint-Germain player, who is still technically on loan from Monaco, became the first teenager to score a World Cup brace (two goals) since Brazilian Pele back in 1958.
France won its match 4-3, having only had the ball 41 percent of the time. And, if that sounds counter-intuitive, then Uruguay's last-16 win over Portugal was even more remarkable.
Portugal's Cristiano Ronaldo celebrates scoring their first goal on June 20th, 2018.Carl Recine | Reuters
Uruguay manager Oscar Tabarez's side mustered 39 percent possession but completed a 2-1 win against Portugal, who featured soccer superstar Cristiano Ronaldo that far from being a smash-and-grab, looked more like a perfectly-executed game plan.
"There is very often this mistaken assumption that ball possession leads to scoring opportunities," Tabarez said. "But even if you don't have much ball possession, you can still inflict yourself on opponents in different ways."
Luka Modric of Croatia scores his penalty past Kasper Schmeichel of Denmark during the 2018 FIFA World Cup Russia Round of 16 match at Nizhny Novgorod Stadium on July 1, 2018 in Russia.Richard Heathcote | Getty Images
Croatia and Denmark made World Cup history by becoming the first teams to take part in a penalty shootout during which five penalties were saved.
Kasper Schmeichel saved two Croatian spot-kicks in the shootout, plus another from Luka Modric in extra-time, but still found himself on the losing side. His opposite number Danijel Subasic made an incredible three stops of his own to hand Croatia passage to a quarter-final.
The World Cup may well be over for Denmark, but Kasper’s father and former Danish keeper Peter was still full of praise for what he saw. Peter Schmeichel won 129 international caps of his own from 1987 to 2001, but saw his World Cup record of 533 minutes without conceding a tournament goal surpassed by his son at Russia 2018.
Belgium's Vincent Kompany in action with Japan's Eiji Kawashima in the World Cup, July 2, 2018.Marko Djurica | Reuters
Belgium topped its World Cup group and found itself in what was regarded as the harder part of the draw. However, that wasn’t necessarily referring to its round of 16 tie against Japan, a side ranked 58 places lower down in FIFA’s rankings.
Japan had never scored a knockout goal in World Cup history prior to this game, but found the net twice in four minutes to set-up an unlikely victory.
However, Belgium became the first team since West Germany in 1970 to overturn a two goal World Cup deficit, leaving it until 30 seconds from the end of added time to score a winner. Nacer Chadli’s goal was the ninth 90th-minute winning goal in this World Cup. There were just 10 in the previous five tournaments combined.
Neymar Jr of Brazil in action during the 2018 FIFA World Cup Russia Round of 16 match between Brazil and Mexico at Samara Arena on July 2, 2018 in Russia.Fred Lee | Getty Images
Brazil is into the quarter-finals for the seventh consecutive tournament and looks to be improving with every game. Central to its chances is forward Neymar, who despite being the most fouled player at the tournament (23), managed a goal and an assist in the 2-0 win against Mexico.
Neymar may split opinion between his skill and on-pitch theatrics, but he still attracts plenty of attention, with an Instagram following of more than 98 million.
Valon Behrami of Switzerland battles for possession with Viktor Claesson of Sweden during the 2018 FIFA World Cup Russia Round of 16 match between Sweden and Switzerland at Saint Petersburg Stadium on July 3, 2018 in Saint Petersburg, Russia. Robert Cianflone | FIFA | Getty Images
Sweden qualified for the World Cup by virtue of a playoff win against Italy and has proved it is worth its place by topping a group that included Germany. The Swedes have kept a clean sheet in three of their four games so far.
The team was rated as underdogs against Switzerland and perhaps still lack the world-class edge that Zlatan Ibrahimovic once brought. It is a strong unit though and one that is happy to concede possession – the Swiss had nearly two-thirds of the ball, but it was the Swedes who prevailed.
Harry Kane of England takes his side's first penalty during the 2018 FIFA World Cup Russia Round of 16 match between Colombia and England at Spartak Stadium on July 3, 2018 in Moscow, Russia.Fred Lee | Getty Images
Prior to its last 16 game against Colombia, England’s track record at World Cup penalty shootouts was played three, lost three. However, that statistic has now changed, after Eric Dier’s decisive spot kick bucked the trend to send manager Gareth Southgate’s side into the quarter-finals.
England hadn’t won a World Cup knockout game in 12 years and had only won two since 1990. Southgate’s decision to play a supposedly weakened team in the final group game against Belgium now appears to have been vindicated, with England avoiding Brazil, France Uruguay and Belgium, potentially until the final.
Football’s not quite coming home, but it’s certainly heading in that direction.
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2132085703d052d4552c122ac03cdb33 | https://www.cnbc.com/2018/07/05/boeing-embraer-to-form-joint-venture.html | Boeing to buy control of Embraer's $4.75 billion commercial jet unit | Boeing to buy control of Embraer's $4.75 billion commercial jet unit
VIDEO2:3102:31Embraer and Boeing to form commerical aviation companySquawk Box
Boeing will buy a controlling stake in the commercial aircraft arm of Brazilian planemaker Embraer under a new $4.75-billion joint venture, the companies said on Thursday, cementing a global passenger jet duopoly.
The new company, encompassing Embraer's commercial aircraft and services businesses, should make Boeing the market leader for smaller passenger jets, creating stiffer competition for the CSeries aircraft program designed by Canada's Bombardier and backed by European rival Airbus.
The deal values Embraer's commercial aircraft operations, the world's third-largest, at $4.75 billion and Boeing's 80-percent ownership stake in the joint venture at $3.8 billion, the companies said.
Boeing is expected to pay for its share of the venture in cash, according to a person familiar with the matter. The statement gave no indication of any payment Boeing was making under the deal.
Embraer will hold the remaining 20 percent of the venture and keep control of its defense and business jet operations. Concern over U.S. influence in Brazilian military programs had raised red flags in Brasilia, which can still veto the deal.
However, recent signals from Brazil's President Michel Temer and military officials suggested the government is satisfied with the new structure of the tie-up, as long as Brazilian jobs are maintained and Embraer continues to develop new technology.
With timely approval from the government, regulators and shareholders, Boeing and Embraer said they expect to close the deal by the end of next year.
The partnership is expected to add to Boeing's earnings per share from 2020, generating annual pre-tax cost savings of about $150 million by the third year, the companies said.
The deal took shape more than two years after the idea was first presented internally to Boeing's board and reflects a longstanding affinity between the two planemakers, a person familiar with the discussions said.
However, the pressure for a tie-up accelerated when Airbus last year announced it would take control of the CSeries jet from rival Bombardier, which had been struggling in its long-running battle with Embraer in the 70- to 130-seat segment of the market.
For Embraer, the Canadian deal put real marketing weight behind a fragile competitor, while for Boeing the transatlantic tie-up threatened to expand the revenue base and cash-generating potential of its European arch-rival.
The two deals represent the biggest realignment in the global aerospace market in decades. The new two-tier duopoly, putting Airbus and Bombardier on one side against Boeing and Embraer on the other, strengthens established Western planemakers against new entrants such as China, analysts say.
In addition, Boeing and Embraer will deepen a sales and services partnership on the new KC-390 military cargo jet with another joint venture to promote and develop new markets and applications for defense products and services, they said.
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83a1e921f5ca539d969a066a44b99381 | https://www.cnbc.com/2018/07/05/china-commerce-ministry-warns-us-tariffs-will-hit-global-supply-chains.html | US tariffs will hit global supply chains, China commerce ministry warns | US tariffs will hit global supply chains, China commerce ministry warns
Workers manufacture cotton yarn at a factory in Dali county, Shaanxi province, China.Nelson Ching | Bloomberg | Getty Images
China's commerce ministry said on Thursday that U.S. tariffs will hit global supply chains including foreign companies in China, reiterating that Beijing does not want to fight a trade war started by the United States.
Separately, China's customs agency said in a statement on its website that Chinese tariffs on U.S. goods will take effect immediately after U.S. tariffs on China goods kick in.
Washington has said it plans to impose tariffs on $34 billion worth of Chinese imports on Friday.
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32048bcf831f61bbf3f820a7a701fe19 | https://www.cnbc.com/2018/07/05/do-your-homework-before-you-move-into-this-retirement-haven.html | Do your homework before moving into a retirement community | Do your homework before moving into a retirement community
MyLoupe | Getty Images
Retirees hoping to spend their golden years in an idyllic retirement community should slow down before signing over their savings.
Continuing care retirement communities, or CCRCs, give retirees the opportunity to age in one location, moving from independent living to assisted living and eventually skilled nursing care.
The arrangements are convenient and often luxurious, but some older Americans may overlook the financial due diligence they need to undertake before committing to a facility.
Often retirees may shell out well over $100,000 as an initial deposit and signing on for additional monthly payments that may change over time as their need for care increases.
Walk through the memory care and nursing care areas and talk to people. Look at the staffing. Are people getting help from the staff? Are the residents happy and cared for?Gregory Zebolskyprincipal, consulting actuary, Milliman
“For many people, even though this is the largest purchase in their lives and they put in a good chunk of their retirement savings, many are penny wise and pound foolish,” said Bernard Krooks, an elder law attorney and founding partner of Littman Krooks in New York City.
One of his clients paid $2 million up front to reside in a continuing care community. That retiree’s family is supposed to receive 90 percent of the deposit if he moves out or dies there, regardless of how long he resides there.
This refund policy will vary from one facility to other.
“They won’t hesitate to write a six- or seven-figure check to the facility, but it’s a bigger hurdle to have an accountant or advisor review the balance sheets,” Krooks said.
As of the end of 2017, there were 1,955 such communities in the U.S., according to Ziegler, an investment bank.
Here’s what you should know before you decide to live in one.
Dougal Waters | Getty Images
Narrowing down the continuing care center you’re interested in will begin with a question of lifestyle: You’re opting to spend the rest of your life there.
“You’re talking about everything from the floor plans, to the meal plans, services and amenities,” said Brad Breeding, a certified financial planner and founder of myLifeSite, a retirement community research site.
High-demand amenities include fitness centers on site and multiple dining venues, including cafes and bistros, said Gregory Zebolsky, principal and consulting actuary at Milliman.
Though the independent living facilities are the show stoppers, you should also check out their assisted living and nursing care departments before deciding.
“Walk through the memory care and nursing care areas and talk to people: Look at the staffing,” Zebolsky said. “Are people getting help from the staff? Are the residents happy and cared for?”
Another reason to look closely at your continuing care center: If its independent living quarters are sparsely occupied, there might be financial troubles ahead.
“In some cases, lower than 90 percent occupancy could suggest an issue with being able to fill certain units with new residents, and the inability to maintain a high occupancy level could be an indicator of problems in the future,” said Zebolsky.
Get into the details and work through them with your accountant: Key financial reports to obtain from your continuing care center include its audited financial statements, data on monthly service fee increases, financial ratios and reserves, according to the California Advocates for Nursing Home Reform.
Further, when continuing care centers do run into financial difficulty, there is no guarantee that a resident will get his or her money back.
In that case, another provider may buy out a struggling facility, potentially leading to a change in services and fees, Breeding said.
CCRCs are regulated by the states in which they are based. The degree to which those regulators will scrutinize these communities will vary.
For instance, some states require that these communities have their resident contracts approved by regulators and that their policies must address how and why monthly fees may increase, according to a 2010 report from the Government Accountability Office.
Prospective residents should reach out to the agency that oversees CCRCs within that state, said Breeding. Here's a list of state agencies that regulate these retirement communities.
Thomas Barwick | Getty Images
Don’t be swayed by glossy brochures and luxurious furnishings. Ask these questions as you visit facilities.
How much of my entry fee is refundable? Some agreements will give a 90 percent refund of your upfront fee if you change facilities or if you pass away within a certain period. “Many contracts will say that you or your heirs will receive that refund once your unit is reoccupied,” said Breeding. That means it could take some time before you get your money back.
Can we see your balance sheets? Highlights include the audited financial statements, the long-term debt to total assets ratio, the debt service coverage ratio and the amount of cash on hand.
Do you work with an actuarial firm? Actuarial firms help CCRCs determine whether their pricing is adequate for their residency contracts and ensure that they’re setting aside reserves for future obligations. Not all states require this.
What’s included with my monthly fee and what’s extra? Along with an upfront fee, residents will pay a certain amount each month that will vary based on their contracts.
Find out whether your monthly cost will change if you need assisted living or skilled nursing care and what amenities are included.
More from Personal Finance
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fb94e087769190088088d0a3e8e3e782 | https://www.cnbc.com/2018/07/05/sprout-ceo-cindy-eckert-whiteheads-trick-to-get-respect.html | Men laughed when this CEO pitched 'female Viagra' — then she sold it for $1 billion. Here's her trick to get respect | Men laughed when this CEO pitched 'female Viagra' — then she sold it for $1 billion. Here's her trick to get respect
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e2caacf9da43dd4bc12a44ea645046ce | https://www.cnbc.com/2018/07/05/tech-ceos-are-losing-unilateral-power-rapidly-in-a-new-unexpected-way.html | Silicon Valley firms are facing a rise in anger from a new source: Their own employees | Silicon Valley firms are facing a rise in anger from a new source: Their own employees
In late June, employees at Salesforce.com completed a task that's becoming common in Silicon Valley.
They protested.
Thousands of tech workers from top companies, including Google, Amazon and Microsoft, have recently led large-scale internal rebellions against their employers. The wave of employee outrage is largely over the use of companies’ technology in controversial government contracts — from facial recognition software sold to law enforcement, to drone technology for the military and work with U.S. Immigration and Customs Enforcement.
More than a thousand Google employees marched in protest on Jan. 30, 2017, against the Trump administration's immigration ban.Harriet Taylor | CNBC
For an industry with a history of outsized CEOs making bold, unilateral decisions, the recent employee uprisings show how much Silicon Valley and its top executives are being forced to adapt to a changing era.
Historically, tech employees have rarely challenged executives on ethical grounds. Employee loyalty is also enforced by a thick layer of nondisclosure agreements. Dissenting tech workers can voice concerns and opinions, but in doing so are simultaneously at the risk of termination. There is no free speech in the private workplace. At-will employment gives companies the power to fire employees for virtually any reason aside from discrimination.
But tech employees are increasingly finding that public attention on some subjects of gravity is an effective cudgel against the historical strength of corporate management. At Microsoft and Salesforce, employees protested the companies’ dealings with ICE after widespread outrage over the agency’s role in separating migrant families. Workers at Amazon challenged the e-commerce giant to stop selling its facial recognition software to the police departments over fears of misuse by law enforcement. Google’s employees were able to successfully coerce its management to abandon a controversial contract with the government, referred to as Project Maven. The project utilized Google’s AI technology to improve drone strikes in the battlefield.
“I think this is an example of the power dynamic shifting,” said Davida Perry, co-founder and partner at Schwartz Perry & Heller, which focuses on employment law. Citing the internal Microsoft protests over the detention of immigrant children at the border, Perry said, “Employees will be supported by a wave of national outrage over what’s going on at the border. If Microsoft were to let them all go, there would be an outcry from the public."
VIDEO1:5901:59Github coders urge Microsoft to break ties with US immigration departmentSquawk Alley
One reason tech employees are able to push the risk of termination relates to their skills. Top Silicon Valley firms are engaged in an intense competition for employees.
“These tech companies are all extremely dependent on scarce talent,” said James Baron, professor at Yale School of Management. “It would not serve companies well that are struggling mightily to attract top talent, to engage in actions that would antagonize employees and have them feel that their ability to express themselves would be forfeited upon their employment there. Other employers that are less dependent on top talent might be able to get away with a hard-line stance,” Baron said.
Results — short of avoiding termination — have been mixed for tech employees. Google is the only major tech firm to cede to employee demands over a contract. Executives from Microsoft and Salesforce sidestepped the employee calls to drop ICE contracts: The companies argued that the software contracted to ICE was not involved in the agency’s policy at the U.S.–Mexico border. As an alternative, Salesforce opted to donate $1 million to help families affected by the Trump administration’s policy.
"We’re proud of our employees for being passionate and vocal and will continue the conversation on this and other important matters," a Salesforce spokeswoman told CNBC.
It would not serve companies well that are struggling mightily to attract top talent, to engage in actions that would antagonize employees and have them feel that their ability to express themselves would be forfeited upon their employment there.James Baronprofessor at Yale School of Management
Microsoft publicly released an email its CEO Satya Nadella sent out to employees on LinkedIn, which played down the company’s involvement with ICE as “supporting legacy mail, calendar, messaging and document management workloads,” but not the agency’s controversial detention policy.
Amazon refused to cede to employee demands over facial recognition software pilot programs with the two police departments, but the Orlando Police Department has decided to drop the software program. During the furor, Amazon Web Services defended its motives in a statement to the press that said, "Our quality of life would be much worse today if we outlawed new technology because some people could choose to abuse the technology."
Late last month facial recognition technology was used to identify the shooter in the attack on the Capital Gazette newspaper in Maryland.
The movement by tech employees to challenge their own executives has been building from a more general protest ethos in the Trump era. Shortly after President Donald Trump came into office and implemented his controversial travel ban, many Silicon Valley workers, including Google workers, joined mass protests. A broad coalition of tech companies, including Apple, Facebook, Google, Microsoft and Tesla — 130 tech companies in all — not only voiced opposition to the travel ban in public statements but filed a legal brief in the U.S. Court of Appeals supporting opposition to it.
Jeffrey Sonnenfeld, senior associate dean for executive programs at Yale School of Management and founder and president of The Yale Chief Executive Leadership Institute, said Google executives made the right decision with Project Maven. He doesn't view CEOs who cede to an employee protest as having forfeited their leadership status, even if it seems counterintuitive. Sonnenfeld said the model at the top is changing quickly, and CEOs who listen and abide by employees' complaints are being seen as stronger leaders.
He pointed to a recent milestone moment when CEOs rebelled against the highest leadership office. “August 2017 was the first time in the nation’s history that CEOs have declined the call of service from the Commander in Chief,” Sonnenfeld said, referring to a cascade of CEO resignations from a business advisory council to Trump that followed the president’s remarks on neo-Nazis and white supremacists. “How can they stand as a leader if they don’t stand behind the values they profess?" And that same privilege should cascade down the firm. "These employees are not slaves, and they’re not soldiers,” he said.
A Harris Poll Reputation Quotient released this week revealed an increase in the percentage of Americans who hold a positive view of CEOs. Nearly one-third of Americans, 32 percent, say today’s CEOs have a “very good reputation,” up from 25 percent last year, according to the poll. In addition, Americans who believe that CEOs have a “very bad reputation" dropped from 50 percent in 2017 to 43 percent this year. Researchers concluded that company and executive reputation is newly “built around ideals, a new moral authority — equal parts capitalist and activist.”
The government contracts in question have so far been inconsequential to these cash-rich growing companies’ balance sheet. For example, Google’s contract with the military for Project Maven was reportedly only a sliver of its $110 billion in annual revenue — $9 million. Until there is much more shareholder money at stake, a decision like Google's won't be difficult to make on financial grounds.
"We maintain an ongoing dialogue both within our company and with outside stakeholders about how best to act," a Microsoft spokesman said.
According to Sonnenfeld, it has never been only about money for Silicon Valley companies, and shareholders need to adapt to the new environment — or invest elsewhere.
“Anybody who invested in these companies who harbored the misconception that these companies will do anything for money should quickly sell their stock and buy into a tobacco company," he said. "That’s not what these companies stood for from the beginning. They stood for values beyond the quickest short-term buck that can be made.”
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730f6a8bb247470a0bd7272fc22f0212 | https://www.cnbc.com/2018/07/05/trump-sides-with-rep-jim-jordan-100percent-in-denying-wrestlers-claims.html | Trump sides with Rep. Jim Jordan '100%' against claims Jordan ignored sex abuse allegations when he was wrestling coach | Trump sides with Rep. Jim Jordan '100%' against claims Jordan ignored sex abuse allegations when he was wrestling coach
Rep. Jim Jordan, R-Ohio, talks with reporters after a meeting of the House Republican Conference in the Capitol on June 26, 2018. Tom Williams | CQ-Roll Call Group | Getty Images
President Donald Trump said Thursday he "100 percent" believes Rep. Jim Jordan, R-Ohio, who has categorically denied recent accusations he ignored reports of sexual abuse when he was a wrestling coach at The Ohio State University.
“I don’t believe them at all,” Trump said of Jordan’s accusers. "Jim Jordan is one of the most outstanding people I’ve met since I’ve been in Washington and I believe him 100 percent," Trump said, adding there was "no question in mind."
Trump was responding to allegations made in an NBC News report published Tuesday, in which former athletes on the university's wrestling team said Jordan, who was the assistant coach from 1986 to 1994, turned a blind eye to a sexually abusive team doctor.
Jordan told Politico that the allegations are "not true."
“I never knew about any type of abuse. If I did, I would have done something about it," Jordan said.
Trump made the remarks aboard Air Force One en route to a rally in Montana, where he stumped for GOP Senate candidate Matt Rosendale, who is running against the Democratic incumbent, Sen. Jon Tester.
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9acf31c55ebd04a8df047189f33f5232 | https://www.cnbc.com/2018/07/05/us-farmers-could-take-a-significant-hit-from-trumps-tariffs.html | US farmers could take a significant hit from trade war | US farmers could take a significant hit from trade war
The Trump administration's tariffs, a 25 percent duty on $34 billion worth of Chinese goods, are set to take effect 12:01 a.m. EST on Friday. Beijing has said it would retaliate immediately with tariffs of its own.
That leaves U.S. farmers in the crossfire.
"Rural communities are dependent on agriculture. It’s their life blood," Casey Guernsey, a seventh-generation beef farmer in the Missouri-Kansas-Iowa area, told CNBC.
China's new tariffs will impact a number of American agricultural products, including soybeans, wheat, corn, cotton and pork, as well as U.S. autos.
Beijing's import levies could end up costing farmers in the state of Missouri as much as $138 million annually, said Guernsey, owner of CL Guernsey, a family farm. That includes the impact of lower prices for farm commodities and potential lost business due to new import duties.
One in four pigs raised in the U.S. is sold overseas, and the Chinese are the world's top consumers of pork. Missouri is one of the top 10 states in pork production.
"We can't afford any increase in price," Guernsey said on "Closing Bell" Thursday. "The difference between making money and losing money per head sometimes is just a couple of dollars. And whenever you’re looking at duties like this, it could make or break the operation."
In fact, the tariffs might only make the situation worse for some farmers. The agricultural economy has been in a down slump for more than a decade. Profits from U.S. farms are forecast to reach a 12-year-low in 2018, according to the Department of Agriculture.
Cows graze on a dairy farm in Porterville, California.Robyn Beck | AFP | Getty Images
President Donald Trump first proposed tariffs last March in an effort to fix what he deemed unfair trading practices and help both American consumers and business owners. Tariffs against Canada, Mexico and the European Union went into effect on June 1. Since then, Mexico, Canada and the European Union have issued retaliatory tariffs of their own, targeting items such as agricultural products, steel, motorcycles and spirits.
Ron Moore, a farmer from Roseville, Illinois, and the chairman of the American Soybean Association, said the tariffs are "devastating" to soybean farmers.
In fact, nearly $14 billion worth of soybeans exported to China will be impacted by tariffs. That's roughly one third of the total soybean production in 2017. With the new tariffs in place, many farmers fear China will cancel soybean shipments to the U.S. for the remainder of the year.
Guernsey said he's already seeing the negative effects play out in the farming community. Mexico, he said, is one of the top partners for beef products. "And we can't afford to lose that market whatsoever," Guernsey said.
The farmer, who also served as a Missouri state representative, said he was planning on building a new barn this year, but said it's now no longer economically feasible. Among his farm customers in Missouri, he said many are selling off their breeding stock.
"And that has long-term implications, not just for their farm, but for ours and for the entire community," Guernsey said.
Moore said he understands the Trump administration's goals in imposing the tariffs and acknowledged that "mostly rural America" supported Trump during the election.
"We just think there are alternative choices to go about trying to bring China to trade fairly, [rather] than going into the tariff wars," he said on "Squawk Alley" on Friday.
VIDEO5:0905:09USDA's Sonny Perdue: Farmers concerned 'patriotism can't pay the bills'Squawk Box
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92007d20d78dcf23930508b37cb935ea | https://www.cnbc.com/2018/07/06/amazons-over-the-counter-drugs-are-less-expensive-than-cvs-walgreens.html | Amazon undercuts drugstores on prices for most over-the-counter drugs | Amazon undercuts drugstores on prices for most over-the-counter drugs
A customer shops for items in a Walgreens in Niles, Illinois. Tim Boyle | Getty Images
Amazon is competing with drugstores where it's known to win: price.
The e-commerce giant quietly launched a line of private-label over-the-counter drugs in August. Called Basic Care, the product line includes about 60 products ranging from ibuprofen to hair regrowth treatment. The products are produced by Perrigo, but serve as Amazon's store brand.
Jefferies compared prices between these products and Walgreens' and CVS' private-label over-the-counter products. Analysts found CVS' products were 20 percent more expensive than Amazon's at the median, while Walgreen's were 22 percent higher than Amazon's.
Eighty-four percent of Walgreens' products and 72 percent of CVS' products were more expensive than Amazon's Basic Care products, Jefferies found. Despite having higher net prices, the two traditional drugstores offered more discounts, Jefferies' Brian Tanquilut said Friday in a note to clients.
A Basic Care bottle of 500 tablets of 200-milligram ibuprofen cost $8.05 on Amazon on Friday, CNBC found. A bottle of Well at Walgreens ibuprofen pills cost $17.99 on the drugstore's website, while a CVS Health bottle cost $15.99.
Amazon's known for taking razor-thin profit margins in order to price products lower than competitors. Applying this tactic to health products could pressure drugstores who are already losing so-called front-end sales to Amazon as people buy household goods online.
Some experts have warned it could take time to change people's shopping behaviors and convince them to stock up for possible future illnesses online. Yet soon Amazon will likely be able to offer both over-the-counter drugs and prescription drugs.
It's acquiring online pharmacy start-up PillPack for roughly $1 billion. The deal threatens to remove one of the few distinguishing factors pharmacy chains have relied on to fend off Amazon, the sale of prescription drugs.
Jefferies' Tanquilut downgraded Walgreens last week after the news, which came just as Walgreens announced results from its most recent quarter. The drugstore chain reported soft same-store sales numbers, particularly in the front of the store, where over-the-counter drugs, household items and greeting cards are sold.
VIDEO0:5100:51Amazon has quietly launched an exclusive line of over-the-counter health productsNews Videos
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127985ab05d9ac626bb62d9f30dc871e | https://www.cnbc.com/2018/07/06/cramer-narrative-trump-wrong-on-china-trade-war-at-odds-with-reality.html | Cramer: Mainstream media narrative that Trump is wrong on the China trade war is at odds with reality | Cramer: Mainstream media narrative that Trump is wrong on the China trade war is at odds with reality
VIDEO0:5700:57Cramer: Trump not wrong on China trade warSquawk on the Street
CNBC’s Jim Cramer said Friday that many Americans support President Donald Trump’s trade war with China, but contended that their voices are being drowned out.
“We simply, as a people, seem to be united that the president's position is wrong. I hear more of that on TV than I hear reality. I think that there are a lot of people [who say], ‘Thank you for standing up for us,’” Cramer said on CNBC.
Just after midnight on Friday, the United States and China exchanged $34 billion worth of tariffs. The American duties affect products such as water boilers, X-ray machine components, airplane tires and various other industrial parts. The Chinese targets include soybeans, pork and electric vehicles.
Cramer, the host of “Mad Money,” contended the time is right for the president to engage China on trade because the U.S. economy is so strong.
VIDEO1:3801:38Trade war stocks that may be winnersSquawk on the Street
"There are a lot of companies that are doing quite well in the country. And I think if you're going to take on the Chinese you do it from strength. And we have much more strength than they do,” he said. “Look at 211,000 jobs on average the last three months, this economy is very strong.”
The three-month job growth average of about 211,000 nonfarm positions, which Cramer cited, reflects the data released by the government in the June employment report on Friday morning.
The Labor Department said the U.S. economy generated a better-than-expected 213,000 jobs last month. The April and May numbers were both revised higher to 175,000 and 244,000, respectively.
Ahead of the jobs report, economists were already pointing to an economy gaining steam. CNBC’s Rapid Update tracker put the expected advance in gross domestic product at 3.8 percent for the second quarter.
(Source: U.S. Commerce Department)
GDP only rose 2 percent in the first quarter, but the January-March period is notorious for underwhelming. Growth was 2.9 percent in the fourth quarter 2017, and above 3 percent in Q3 and Q2 last year.
Trump has made economic growth of more than 3 percent a goal of his administration.
VIDEO1:5701:57Soybeans feel the impact of trade war with ChinaSquawk Alley
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96bec03d10d74d276dee4e4843bea74c | https://www.cnbc.com/2018/07/06/democrats-tie-trump-supreme-court-pick-to-special-counsel-heres-why.html | Democrats are tying Trump's Supreme Court pick to the special counsel's Russia probe. Here's why | Democrats are tying Trump's Supreme Court pick to the special counsel's Russia probe. Here's why
Robert MuellerGetty Images
With a slim Republican majority in the Senate and four months before the 2018 midterm elections, President Donald Trump appears to be sprinting toward his second Supreme Court appointment with few obstacles in his way. But some Democrats are arguing for a halt by dragging special counsel Robert Mueller into the fight.
A handful of Democrats has argued that the special counsel's ongoing investigation should preclude Trump from nominating a successor to replace resigning Justice Anthony Kennedy.
While the argument may sound compelling to Democratic partisans, it doesn't have much basis in law or Supreme Court precedent, constitutional scholars tell CNBC.
Mueller's team is looking into potential coordination between the Trump campaign and Russia during the 2016 election, as well as the possibility that Trump obstructed justice. While Trump is under investigation as part of that probe, he has been told he is not a target, The Washington Post reported in April.
Sen. Cory Booker, D-N.J., identified potential conflicts between the nomination process and the ongoing Russia probe in a judiciary committee hearing last week. “I do not believe this committee should or can in good conscience consider a nominee put forward by this president until that investigation is concluded," he said.
Booker also expressed concern that Trump's documented fondness for demanding the loyalty of his appointees could call the impartiality of his Supreme Court picks into question. That in turn, he said, could potentially apply to the special counsel's probe if any legal challenges to Mueller's conclusions make it all the way to the Supreme Court.
“If we’re not going to thoroughly discuss what it means to have a president with this ongoing investigation happening, who is now going to interview Supreme Court justices, and potentially continue with his tradition of doing litmus tests, loyalty tests, for that person, we could be participating in a process that could undermine that criminal investigation,” Booker said.
Sen. Jack Reed, D-R.I., also highlighted the Mueller investigation in his statement on Kennedy's retirement. Arguing that the next justice should be chosen through a thorough and deliberate process, Reed said that if Republicans "try to rush this nominee through they will also be conveniently ignoring the serious investigation into Russia’s pro-Trump campaign interference in our democracy."
Sen. Jeff Merkley, D-Ore., echoed his colleagues, drawing the same line in the sand in a tweet Friday morning.
Merkley tweet
Experts say there's no law or tradition barring presidents from nominating judges while they're under investigation.
"I don’t know of any legal or historical basis for that," said William Baude, a law professor at the University of Chicago.
Past presidents have set the opposite standard, in fact, Baude pointed out that President Bill Clinton had nominated Judge Stephen Breyer to the Supreme Court months after independent counsel Robert Fiske was appointed to investigate the Whitewater scandal.
"There's certainly no statutory law or constitutional provision saying that a president under investigation can't nominate judges," said Josh Chafetz, a law professor at Cornell University and the author of multiple books about politics and the constitution.
But the rhetoric might touch an alarmist nerve among Democratic voters that could galvanize turnout for the midterm elections in November.
Suggesting that Trump's Supreme Court pick could potentially undermine the Russia probe — as Booker did — may give Democrats another tool in their arsenal to accuse Republicans of appeasing Trump.
"Democrats realize that, most likely, Trump's nominee will get confirmed, and they're looking for an angle to make the case to voters that this is yet another reason that GOP members of Congress should be voted out," Chafetz said.
"Who knows if it will work as campaign rhetoric, but it's not a crazy gambit," he added.
Frank Ravitch, a professor at Michigan State University's law school, said that while the Mueller investigation doesn't legally take away Trump's power to appoint a justice, the Democrats are presenting a reasonable political argument.
Ravitch contrasted their latest moves with Senate Majority Leader Mitch McConnell's year-long blockade against President Barack Obama's nominee, Merrick Garland, which he said "broke with past Senate practice and common sense."
"Certainly, what some Democrats are proposing now has more substance than McConnell’s gambit, given the nature of the investigation," Ravitch added.
Trump said on Thursday that he would announce his nominee at 9 p.m. ET on Monday. A steady trickle of news reports suggest that his list of contenders has been whittled down to three or four candidates.
While Trump's opponents on Capitol Hill have called for a delay until after the midterms, the president appears to have more than enough time to make his appointment. The midterms are four months away on Nov. 6; Trump's last pick, Justice Neil Gorsuch, moved from nomination to appointment in just over three months in 2017.
The stakes could hardly be higher. The Supreme Court provides the final say on how the words of the Constitution — the nation's preeminent set of rules — can be interpreted. The high court's nine justices are appointed for life terms, and they are all but unimpeachable. When the court's new entrants consistently lean toward one ideology, reams of judicial precedent that had been decided by slim, contentious majorities could be reevaluated.
Still, there are other ways Democrats might be able to keep Trump from further reshaping the high court. The razor-thin 50-49 Republican majority in the Senate could give Democrats at least the sliver of a chance to vote down Trump's eventual nominee to replace Kennedy if potential swing GOP votes such as Sen. Susan Collins of Maine. (Sen. John McCain, R-Ariz., is away from Congress receiving treatment for brain cancer.)
Chafetz said that invoking the Mueller probe could be intended to shore up Democratic votes and unmoor Republican approval in a Senate confirmation vote.
"If McCain doesn't vote, and if they can convince one Republican [e.g., Sens. Susan Collins or Lisa Murkowski] to vote no, and if they can keep all the Democrats together — three huge, and unlikely, ifs — then they can defeat a nomination," Chafetz said in an email.
"Arguments like this are aimed at giving Democrats a reason and rationale for sticking together and Republicans a reason and rationale for breaking ranks," he added.
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b08129e21e2bd2fe4bbcc1f1e62e0c9e | https://www.cnbc.com/2018/07/06/rep-jim-jordan-again-denies-claims-he-ignored-sexual-abuse-reports.html | Rep. Jim Jordan again denies claims he ignored sexual abuse reports, pushes back against accuser | Rep. Jim Jordan again denies claims he ignored sexual abuse reports, pushes back against accuser
Rep. Jim JordanJonathan Ernst | Reuters
Rep. Jim Jordan, R-Ohio, on Friday again denied allegations he ignored reports of sexual abuse while he coached The Ohio State University's wrestling team.
"I never saw, never heard of, never was told about any type of abuse. If I had been, I would have dealt with it," Jordan said, adding that "if there are victims, they deserve justice."
Jordan also pushed back against at least one of his accusers in the Fox News interview Friday evening, saying that former wrestler Mike DiSabato held a "vendetta" against the university and his family and has "all kinds of lawsuits against him."
Multiple former wrestlers who attended the university have accused the U.S. representative of turning a blind eye to allegations of sexual abuse from the team's doctor, Richard Strauss, when he was the assistant wrestling coach from 1986 to 1994. Strauss died in 2005.
Two former wrestlers told The Associated Press that Jordan had knowledge of the allegations. Two other wrestlers have also told NBC and the Wall Street Journal, respectively, that Jordan knew of the alleged abuse.
After listening to a television clip of DiSabato saying Jordan and others discussed Strauss' sexual misconduct on a "regular basis" through "locker room banter," Jordan responded that "conversations in a locker room are a lot different than allegations of abuse, or reported abuse."
Jordan also denied that he had ever heard such locker room conversations during his tenure coaching at the university.
"What bothers me the most is the guys that are saying this thing, I know they know the truth," Jordan said.
Asked about why the wrestlers would come forward with allegations that are untrue, Jordan said the the timing of the news reports was also suspicious.
"The timing is suspect, from when you think about how this whole story came together after the Rosenstein interview or hearing, with this whole talk about the speaker’s race."
Jordan, a member of the House Judiciary Committee, has been among the most outspoken critics of federal law enforcement agencies' handling of the Russia investigation, and of Deputy Attorney General Rod Rosenstein's role overseeing special counsel Robert Mueller, who is the head investigator in the ongoing probe.
Last week, Jordan and Rosenstein shared a heated exchange when Rosenstein and FBI Director Christopher Wray testified before the judiciary committee in a hearing.
President Donald Trump weighed in on the ongoing controversy aboard Air Force One en route to a rally in Montana on Thursday, saying he fully believes Jordan.
“I don’t believe them at all,” Trump said of Jordan’s accusers. "Jim Jordan is one of the most outstanding people I’ve met since I’ve been in Washington and I believe him 100 percent," Trump said, adding there was "no question in mind."
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55dcf87904e5f85ed9f9e29aabcd0cc0 | https://www.cnbc.com/2018/07/06/san-francisco-house-prices-grew-fastest-ever-in-the-first-half-of-2018.html?__source=sharebar%7Cemail&par=sharebar | San Francisco house prices grew the fastest ever in the first half of 2018 as the tech boom shows no signs of slowing | San Francisco house prices grew the fastest ever in the first half of 2018 as the tech boom shows no signs of slowing
The Presidio of San FranciscoSteve Proehl | Getty Images
The average price of a house bought in San Francisco rose by $205,000 in the first half of 2018, the largest six-month increase in history, according to MLS data compiled by local real estate agency Paragon.
The average house in the city limits now costs $1.62 million. Condo prices also rose by $71,000, which is a significantly slower pace of change than in past years, but still comes in at a startling $1.21 million.
This is a direct outgrowth of the current tech boom in Silicon Valley, which shows no signs of slowing down.
VIDEO0:2800:28Bay Area residents are ready to move outNews Videos
It's worth recalling that a lot of people in Silicon Valley were bracing for a slowdown in 2015. Venture investors like Bill Gurley were predicting that long-running start-ups would have to raise rounds at lower valuations because their last rounds came with restrictive conditions for future investors but they weren't ready to go public yet. Start-ups cracked down on expenses. Apple's share price actually dropped during the year, as investors grew concerned about slowing iPhone sales and the prospect of a general downturn. The next year, Silicon Valley stalwarts Intel and Cisco both laid off several thousand employees apiece.
Indeed, housing prices in SF actually slowed their growth in 2015 and 2016, before starting to rocket up again last year.
What changed?
Softbank's $100 billion Vision Fund, which kicked off in 2017, has injected massive amounts of new money into the Valley's start-ups, with investments starting at several hundred million dollars apiece and, in some cases like Uber, buyouts for earlier investors. As Softbank floods the market with capital, traditional VCs like Sequoia have also stepped up their game with massive new funds.The tech IPO market is having its best year in ages, particularly for enterprise software companies that came of age during the current boom, like Dropbox (founded in 2007) and Zuora (2006).Local tech giants are doing better than ever. Apple, Alphabet, Facebook, Netflix, Salesforce and others continue to grow their revenues, share prices and employee numbers. Whatever slowdown investors were expecting did not happen.
There are other factors in San Francisco's housing prices, including an extreme lack of new housing supply and foreign investment. But as the tech industry continues to power the entire U.S. economy, it only makes sense that its capital becomes an ever more desirable place to live.
VIDEO1:1801:18The top places Chinese millionaires want to movePower Lunch
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3e0515d8f6a3e326d1e60bfad4acc4ce | https://www.cnbc.com/2018/07/06/what-generation-x-needs-to-focus-on-to-retire-successfully.html?__source=twitter%7Cmain | What Generation X needs to focus on to retire successfully | What Generation X needs to focus on to retire successfully
VIDEO0:5400:54Generation X struggles with retirement, survey saysNews Videos
If you’re a member of Generation X, chances are you may be feeling that “Reality Bites” when it comes to your retirement planning.
That is because many members of Gen X — who were born between 1965 and 1978 — face challenges that the baby boomers who came before them and the millennials after them do not.
A recent survey from the Transamerica Center for Retirement Studies found that Gen X Americans are more likely than baby boomers and millennials to indicate they "may never recover" or have "not yet begun to recover" from the Great Recession.
At the same time, they are juggling their careers and caring for their aging parents. And many of them are behind on their retirement savings.
A separate survey from money manager Personal Capital found that more than one-third of Gen Xers — 34 percent — have no retirement savings.
As the youngest Gen Xers turn 40 and with the oldest in their early 50s, there is still time to catch up. But they have to act now, according to Catherine Collinson, CEO and president of the Transamerica Institute and Transamerica Center for Retirement Studies.
“They still have a time horizon where they can build plans, save more and achieve financial security in retirement, but they’re also not getting any younger,” Collinson said. “So the sooner they get started and refocused, the better off that they can be in the long run.”
For many Gen Xers, that starts with establishing where they are financially.
Personal Capital's survey found that while most Gen Xers say that having a financial plan is the most important thing when it comes to having a secure retirement, many do not know their net worth.
“If you don’t know where you are, it’s very hard to get where you are going,” said Michelle Brownstein, vice president of private client services at Personal Capital.
Get started by first establishing your net worth and then figuring out your budget, Brownstein said.
List all of your assets and debts. Next, write down exactly how much money is coming into your household and how much is going out.
If you fall short, consider adjusting how you spend. That could include dining in more regularly instead of eating out or taking road trips instead of more lavish vacations, Brownstein suggested.
“There’s a lot of shifts someone can make that make a difference in the long term,” Brownstein said.
Also consider cutting your memberships, said Matthew Gaffey, senior wealth manager at Corbett Road Wealth Management, such as to the gym and other clubs, as well as subscriptions to magazines or premium cable channels.
Making those spending cuts can help you increase your emergency fund, which . "If you haven't established that yet, that's always priority No. 1," Gaffey said.
Once you have a handle on your household budget, then it’s time to assess your retirement plans.
Brownstein suggests coming up with the sum you will need in retirement and planning from there.
“If I need $1 million to fund my retirement and lifestyle at that point, how much do I need to save every year to get there?” Brownstein said.
If you’re behind in your retirement savings or just getting started, be prepared to make some adjustments.
“There can be some trade-offs that have to be made, but the longer someone waits, the bigger those trade-offs tend to become,” Brownstein said.
VIDEO3:2503:25Saving More, Working LessPersonal Finance
That could include relocating where you live to having a nonworking spouse re-enter the workforce.
It may also mean cutting back on helping your children with their college funding, which can be a difficult choice for some parents, Brownstein said.
“If there is that decision that I can either afford to pay for my retirement long term, or I can afford to pay for college, retirement should be what’s chosen for most people,” Brownstein said. “You can take out student loans, but you cannot borrow money to fund your retirement.”
More from Personal Finance:
These two changes may radically improve your retirement prospects
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7aaac3a966d7ca44f5e888ddb01f6a1c | https://www.cnbc.com/2018/07/09/apple-slices-into-spotifys-lead-in-the-us-music-market.html | Apple slices into Spotify’s lead in the US music market | Apple slices into Spotify’s lead in the US music market
A man checks the Apple Music streaming site using his Apple Inc. iPhone 6s.Chris Ratcliffe | Bloomberg | Getty Images
Spotify’s lead over Apple’s music-streaming service in the US is narrowing, denting the air of invincibility around the recently floated pioneer.
While Spotify still holds a commanding lead globally, Apple’s faster growth rate in the world’s largest music market reflects its ability to push its services to owners of its devices, such as the iPhone.
The rising relevance of Apple Music in the streaming market has been underscored in the past two weeks with the release of Scorpion by Drake, which is expected to be the biggest album of the year. In the first 24 hours of its release, it was streamed on Apple Music 170m times, while Spotify recorded just 130m streams, despite having three times as many total users.
“You literally couldn’t navigate around Drake on Spotify,” said one record label executive. “But Apple was really able to drive engagement”.
Spotify, Apple and other streaming services do not publicly break down their subscriber counts by country, but they do report the figures to music distributors and record companies.
As of last week, Apple had between 21m and 21.5m US subscribers, while Spotify had 22m to 22.5m, according to industry executives. A year ago, Spotify had about 17m US subscribers to Apple’s 13m, these people say.
Music executives expect Apple to match Spotify in the US by next month. Apple should end the year with about 27m US subscribers to Spotify’s 24m, according to internal forecasts viewed by the FT. Apple’s music service has also been growing faster than Spotify in the UK and Canada, countries that were heavy adopters of the iTunes store, these executives said.
“Spotify has always targeted music lovers, who tend to be a bit younger and were early adopters of streaming,” said Mark Mulligan, analyst at Midia Research. “A lot of that base has been soaked up now, whereas Apple has a much wider customer base. They can get those more mainstream people very easily because [Apple Music] is already in their phone, and they already have their credit card info.”
Globally, Spotify remains the leader in digital music by a wide margin. The company, which also offers a free service, said it had signed up 75m paying customers to the end of March, and expected that to increase to nearly 100m by the end of the year.
VIDEO4:0204:02Streaming stocks are on a tear, and it’s not just NetflixTrading Nation
Apple most recently reported it had 50m subscribers as of May, although this includes people who signed up for a free trial, inflating the number. Amazon has become a third competitor in the race: the company said in April it had “tens of millions” of subscribers for its music streaming service, but declined to give an exact figure.
Spotify faces greater scrutiny of its subscriber numbers as a public company — investors care about user growth because the $30bn company is still lossmaking.
It has been attempting to stoke subscriber growth, and in April unveiled a bundled subscription package with Hulu, the video streaming site that rivals Netflix. Spotify was also offering a three-month trial of its premium service for 99 cents in some markets, and revamped its free service to help attract new customers to its app.
It is set to report its latest global subscriber numbers on July 26, along with quarterly earnings.
Daniel Ek, Spotify’s cofounder and chief executive, has brushed off concerns about Apple’s threat. “We don’t see any meaningful impact of competition,” he said on a call with investors in May. “We don’t think that this is a winner takes all market.”
Apple and Spotify declined to comment.
—Additional reporting by Tim Bradshaw in Los Angeles
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33aac02a7a939f6b280ede61e09e9a06 | https://www.cnbc.com/2018/07/09/gov-john-kasich-considering-presidential-run-rips-trumps-tariffs.html | GOP Gov. John Kasich, who is undecided on another White House run, rips Trump's tariffs for 'creating a division with our friends' | GOP Gov. John Kasich, who is undecided on another White House run, rips Trump's tariffs for 'creating a division with our friends'
VIDEO6:2106:21Governor Kasich criticizes Trump's trade policiesPower Lunch
Gov. John Kasich, R-Ohio, hasn’t yet decided whether he’s running for president again in 2020, but he’s letting it be known that he doesn’t agree with President Donald Trump’s trade tactics.
Most notably, he takes issue with the steel and aluminum tariffs on Canada, Mexico and the European Union, key U.S. allies. They have since responded with retaliatory measures.
And Trump's imposition of tariffs isn’t an isolated move; it came after the U.S. pulled out of the Paris Accord, took unilateral action on Iran and created friction at the recent meeting of the G-7 leaders, Kasich told CNBC on Monday.
“We’re creating a division with our friends who have kept the peace for 70 years in this world,” he said on “Power Lunch.”
“We have to be careful that we’re not fraying relationships that have kept us peaceful, safer,” he added. “That includes free trade.”
Kasich, who is in his second term as Ohio governor, said he still hasn't made up his mind about running for president in 2020. On Monday, when asked if he’s decided, he responded, “I don’t know.” Term limits prevent Kasich from running for a third term as governor.
Ohio Governor John Kasich (R-OH)Getty Images
In April, CNBC reported Kasich met privately with billionaire investor and private philanthropist Ron Burkle, who has a reputation for donating to candidates and causes across the political spectrum. It’s unclear whether a 2020 bid was discussed at the meeting.
Meanwhile, close allies of Kasich have reached out to prominent GOP donors to gauge their interest in backing the Republican against Trump, sources previously told CNBC.
In March, Kasich said, “All of my options are on the table” when asked about a run, according to Politico. Kasich was among the candidates who lost to Trump during the 2016 GOP primary battle for the party's nomination.
Kasich’s trade comments on Monday follow a Financial Times op-ed published last week.
He wrote, “America’s first war, for its independence, began with ‘the shot heard round the world’. Sadly, the latest one — a trade war supposedly in defence of US economic independence — is beginning with a shot to the foot.”
Trump’s tariffs on $34 billion worth of Chinese goods took effect on Friday. China then fired back with retaliatory tariffs on $34 billion worth of U.S. goods, including soybeans and pork.
Trump also expects to soon add a further $16 billion in tariffs and will consider up to hundreds of billions of dollars more in duties.
Kasich told CNBC on Monday that the U.S. is sending its allies mixed messages.
“On one hand we’re beating up our allies, and on the other hand we want them to help us in regard to China,” he said.
He said China’s trade infractions should be dealt with through the World Trade Organization.
“We don’t want them stealing our secrets," Kasich said. "We don’t want them cheating, but that’s why we created this international trade organization that reduces friction and gets people in a position where we can all be more successful.”
— CNBC’s Brian Schwartz and Jacob Pramuk contributed to this report.
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c7967d145d09c6749be73bcd87502bca | https://www.cnbc.com/2018/07/09/paper-straws-are-better-for-the-environment-but-they-will-cost-you.html | Paper straws cost 'maybe 10 times' more than plastic straws, says paper straw distributor | Paper straws cost 'maybe 10 times' more than plastic straws, says paper straw distributor
VIDEO2:3202:32Eco-friendly packaging exec talks Starbucks' straw elimination planClosing Bell
Food distributors are looking for environmentally friendly alternatives as more and more companies ditch plastic straws. The most obvious choice is paper straws, but they cost a lot more.
"You’re looking at maybe ten times the cost," Adam Merran, CEO of PacknWood, a food service products company, told CNBC on "Closing Bell" Monday.
"If you buy a paper straw, it’s about two cents and a half," he said. Plastic straws cost about a half-cent.
But Merran, whose company distributes paper straws —using recyclable and organic materials — to coffee shops, Las Vegas casinos and large stadiums like Madison Square Garden, said it's all about perspective.
"You go from something that is very, very, very cheap, to something that is still actually cheap," he said.
Starbucks was just one of many chains to recently announce that it would go without single-use plastic straws by 2020. Bon Appetit Management Company, a food service management company that services about 1,000 locations around the nation, also recently announced it would stop using plastic straws in facilities that it manages.
However, Starbucks, in lieu of paper straws — which many customers have complained lose their shape too fast — said it will replace plastic straws with a recyclable sippy cup-type lid.
"Any green solution is a solution," Merran said.
The design studio Kikkerland designed these festive paper straws that can be tossed in a home composter after a party. They come in a box of 144 and can be purchased for under $10.Allen J. Schaben | Los Angeles Times| Getty Images
He said other alternatives include re-usable straws, where customers clean their straws at home and bring them back each time they dine out, similar to a to-go mug.
As for how long the paper straws last after being inserted into liquid, Merran said it depends on the beverage and temperature.
"It should hold for about the time for you to [finish the] drink," he said. "It’s going to become a little soggy, but you can still drink from it. It’s like any alternative. It’s not perfect but it does the trick."
WATCH: Starbucks will ditch plastic straws from all stores by 2020
VIDEO1:2801:28Starbucks to ditch plastic straws from all stores by 2020Squawk Box
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281a5ac19bb970a5c62c991978fa3911 | https://www.cnbc.com/2018/07/09/southwest-airlines-is-getting-rid-of-peanuts.html | Southwest Airlines will stop serving peanuts this summer, citing allergy worries | Southwest Airlines will stop serving peanuts this summer, citing allergy worries
A Southwest Airlines jet leaves Midway Airport on January 25, 2018 in Chicago, Illinois.Scott Olson/Getty Images
Passengers will no longer get peanuts on Southwest Airlines flights, starting this summer.
Beginning Aug. 1, the low-cost airline will stop serving peanuts on board its planes, the carrier said on Monday.
The airline is one of several large carriers that have ditched the longtime, packaged airplane snack as some passengers suffer from peanut allergies, which can cause severe and even life-threatening reactions.
"Peanuts forever will be part of Southwest’s history and DNA," the airline said in a statement. "However, to ensure the best on-board experience for everyone, especially for customers with peanut-related allergies, we’ve made the difficult decision to discontinue serving peanuts on all flights beginning Aug. 1."
Severe allergic reactions to food are the cause of 150 deaths a year in the United States and 2,000 hospitalizations, according to the Food and Drug Administration.
The airline said it will continue to serve complementary pretzels and other snacks on longer routes, which it hopes "will please customers who might be nostalgic or sad to see peanuts go.
Our ultimate goal is to create an environment where all customers—including those with peanut-related allergies—feel safe and welcome on every Southwest flight."
American and United don't serve packaged peanuts on board but they warn passengers that other foods and snacks they serve can contain nuts or other foods to which some passengers may be allergic. The airlines can't guarantee the flight will be entirely free of peanuts. Delta Air Lines on its website said that it won't serve peanuts on board if a passenger notifies the airline of an allergy. It also allows travelers to board early to clean seats and tray tables for trace amounts of the food.
Southwest, too, said customers should note their peanut allergy when booking flights and that they can still board early to wipe down seats and tray tables.
VIDEO1:1001:10Airlines are rethinking their emotional-support animal policiesDigital Original
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63a186c61091752c58644fbf95246485 | https://www.cnbc.com/2018/07/09/trump-driver-sues-trump-organization-for-stiffing-him-on-pay.html | President Trump's longtime driver sues Trump Organization, saying it stiffed him on overtime pay for years | President Trump's longtime driver sues Trump Organization, saying it stiffed him on overtime pay for years
President Donald TrumpLeah Millis | Reuters
President Donald Trump's longtime personal driver Noel Cintron on Monday accused the Trump Organization of not paying him for "thousands of hours of overtime" to which he was legally entitled during his more than two decades of service.
"In an utterly callous display of unwarranted privilege and entitlement and without even a minimal sense of noblesse oblige President Donald Trump has, through defendant entities, exploited and denied significant wages to his own longstanding personal driver," says the lawsuit, which was filed in Manhattan Supreme Court in New York City.
The suit says Cintron worked an average of 50 to 55 hours per week for Trump for more than 25 years.
During that time, the suit alleges, Cintron received a base salary but was never paid — as legally required — overtime pay at a rate of 1½ times his regular hourly rate for hours worked in excess of 40 hours per week.
Cintron's suit, which names only the Trump Organization and Trump Tower Commercial LLC as defendants, also said "President Trump's further callousness and cupidity is further demonstrated by the fact that while he is purportedly a billionaire, he has not given his personal driver a meaningful raise in over 12 years."
In fact, the suit says that when Cintron — who still works for the Trump Organization — received a "purported" raise of $7,000 per year in 2010, it was more than eaten up by the loss of his health insurance benefits that same year.
And it says Trump failed to reimburse Cintron for "accrued vacation time, accrued sick days, and his expenses while performing his job duties."
The suit says that under the law, due to the statute of limitations, Cintron can only make a claim for unpaid overtime for the past six years.
The complaint says he worked about 550 hours of uncompensated overtime per year for those six years, totaling about 3,330 hours of overtime. At Cintron's current pay rate, that would mean he would be owed $178,487 in back pay. In addition to back overtime with interest, Cintron's suit is asking for almost $40,000 in statutory penalties.
A Trump Organization spokesman said, in an emailed statement, “Mr. Cintron was at all times paid generously and in accordance with the law. Once the facts come out we expect to be fully vindicated in court.”
The White House had no immediate comment.
Cintron was Trump's personal driver for more than 25 years until the Secret Service began handling that task when Trump was running for president. He also has chauffeured members of Trump's family and other business executives, the suit says.
"It's truly disgraceful that Trump's longstanding and faithful employee had to resort to litigation to address the fact that he is being exploited and denied his fair wages," said Cintron's attorney, Larry Hutcher. "However, this type of conduct is shameful from the president who claims to represent the working people of our great nation."
The suit accuses the defendants of violating the Fair Labor Standards Act and multiple violations of New York State labor law.
The suit says that during his tenure at the Trump Organization, Cintron regularly worked five days per week from about 7 a.m. "to whenever Donald Trump, his family or business associates no longer required" Cintron's services.
In 2003 or so, the suit says, Cintron was being payed "a fixed salary of $62,700."
That was bumped up to $68,000 per year in late 2006, according to the complaint.
Then, in December 2010, "Trump purported to increase Plaintiff's annual salary by $7,000, to a total of $75,000 per year," the suit says.
"The word 'purported' is used in the immediately preceding paragraph because this $7,000 increase was granted solely because Plaintiff was induced to surrender his health benefits obtained through Trump, saving Trump approximately $17,866.08 per year in health insurance premiums," according to the complaint.
Cintron "has not received any raises since then," the suit adds.
Based on his current hourly rate as of today, or $36.0577 per hour, Cintron should have been paid $54.087 per hour for any time worked beyond 40 hours per week, according to the complaint.
Assuming a work week of 50 hours, the suit says, Cintron should have received $540.87 in overtime pay per week on top of his regular weekly pay.
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dfecf6fe325f6f6155f8784f000d6dde | https://www.cnbc.com/2018/07/09/trump-supreme-court-pick-greatest-focus-on-two-scotus-nominees.html | Two nominees are now Trump's greatest focus for top court, NBC News says | Two nominees are now Trump's greatest focus for top court, NBC News says
VIDEO1:1301:13Trump set to announce Supreme Court nominee todaySquawk Box
None of the four contenders being considered as President Donald Trump's nominee for the Supreme Court has been excluded, but the greatest focus has fallen on two candidates: Brett Kavanaugh and Thomas Hardiman, a source with first-hand knowledge of the process told NBC News.
Kavanaugh sits on the D.C. Circuit Court of Appeals. Hardiman is a judge on the 3rd Circuit of Appeals.
The other two front-runners are Amy Coney Barrett of the 7th Circuit of Appeals and Raymond Kethledge of the 6th Circuit Court of Appeals.
CNBC reported last week that Trump privately indicated to a small group that he had settled on a nominee to succeed Justice Anthony Kennedy on the Supreme Court, according to a person with direct knowledge of the matter.
During the July 4 picnic at the White House, Trump suggested to friends and some external advisors that he had already made up his mind about whom he will pick to join the high court, the person said on the condition of anonymity due to the sensitive nature of the ongoing deliberations.
That source, along with another person familiar with the negotiations, said the president gave strong indications that he prefers Kavanaugh.
Trump said on Sunday that he will announce his "final decision" at 9 p.m. ET on Monday. "An exceptional person will be chosen!" he exclaimed on Twitter.
Trump hopes to push his nominee through the confirmation process before midterm elections in November.
His pick to fill the seat of Justice Kennedy will help to define the court's path for decades to come.
Democrats have argued the Senate should wait to vote on another justice until after the elections, when the minority party has a chance to flip control of the chamber.
Two years ago, Republicans refused to hold confirmation hearings for President Barack Obama's nominee to the top court, Merrick Garland, until after Obama's term ended and his replacement could name a candidate instead.
—CNBC's Brian Schwartz and Jacob Pramuk contributed to this report.
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257fa6bfeb5121a6900b62fa9b32d0fe | https://www.cnbc.com/2018/07/10/amazon-netflix-and-microsoft-hold-most-of-the-markets-gain-in-2018.html | Just three stocks are responsible for most of the market’s gain this year | Just three stocks are responsible for most of the market’s gain this year
VIDEO0:5800:58Three stocks made up a staggering 71% of market returns this yearNews Videos
Amazon, Netflix and Microsoft together this year are responsible for 71 percent of returns and for 78 percent of Nasdaq 100 returns.
The three stocks make up 35 percent, 21 percent and 15 percent of S&P 500 returns, respectively, while making up 41 percent, 21 percent and 15 percent of Nasdaq 100 returns.
Apple also makes up a large portion of both indexes, contributing 12 percent of both S&P 500 and Nasdaq 100 returns, while Alphabet and Facebook contributed 8 percent to each.
Both rising rates and President Donald Trump's tough talk on trade have weighed on the rest of the stock market this year. For the former, market players fear the struggling equities environment which follows substantial moves in rates. Five months after a rate spike like the one seen in the first quarter, the S&P 500 declines on average by 0.3 percent. The second factor, Trump's trade talk, has destroyed more than $1 trillion market value so far, according to J.P. Morgan on June 6. The firm highlighted the impact of trade and protectionist ideology as significant market headwinds, which have only continued to escalate.
"Returns reflect markets facing macro uncertainty and tightening financial conditions," BlackRock global chief investment strategist Richard Turnill wrote in a note Tuesday.
In total for 2018, the six stocks make up 98 percent of S&P 500 returns and 105 percent of Nasdaq 100 returns.
The S&P 500 is up 4.4 percent for 2018, while the Nasdaq 100 is up almost 14 percent.
– CNBC's Robert Hum contributed to this report.
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995a082c4ddca9fdeebdfad5094164fc | https://www.cnbc.com/2018/07/10/edgar--ed--wachenheim-delivering-alpha.html | Edgar 'Ed' Wachenheim III | Edgar 'Ed' Wachenheim III
Ed Wachenheim, Chairman, CEO and Founder, Greenhaven AssociatesSource: Greenhaven Associates
Edgar "Ed" Wachenheim III is founder, CEO and chairman of Greenhaven Associates, a value-oriented investment management firm that manages approximately $7.5 billion. Clients include wealthy families, university endowments and nonprofits. Purchase, New York-based Greenhaven invests with a three- to four-year time horizon and pays almost no attention to short-term or relative performance or to prediction on the near-term direction of the stock market. From 1988–2017, the average annual return of a Greenhaven portfolio had been roughly 19 percent (before fees).
Author of the book, Common Stocks & Common Sense (Wiley – 2016), Wachenheim is vice chairman of the board of Central National-Gottesman, a company with close to $6 billion in revenues that distributes and markets paper around the world; chairman of the board of WNET; a trustee of the Museum of Modern Art; life trustee and former chair of the executive and investment committees of the New York Public Library; trustee emeritus and former vice chair of Skidmore College and trustee emeritus and former board president of Rye Country Day School.
Wachenheim's interests include hiking, tennis, photography, modern art and the management of endowments (have been chair of five investment committees over the years). He has four children and six grandchildren and lives in Rye, New York.
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f4db9b49bf994d4bd5e7517194fe7a81 | https://www.cnbc.com/2018/07/10/elon-musk-takes-submarine-to-thailands-tham-luang--cave.html | Elon Musk takes submarine to Thai cave, but rescue chief reportedly calls it ‘not practical’ | Elon Musk takes submarine to Thai cave, but rescue chief reportedly calls it ‘not practical’
VIDEO0:4800:48Elon Musk took a SpaceX submarine to the Thai cave rescueNews Videos
Elon Musk visited the location where a group of Thai boys and their soccer coach were trapped in a cave, according to a post on his Twitter account.
The Tesla CEO tweeted late Monday that he had “just returned from Cave 3,” likely in reference to chamber three, the rescue command center.
A “kid-size submarine” that he shared footage of on social media is “ready if needed,” the billionaire entrepreneur said, and is named “Wild Boar” after the boys’ soccer team. The 12 boys and their coach were discovered trapped inside the flooded Tham Luang cave in Thailand’s Chiang Rai province last week.
The structure of the mini-submarine was made from a part of one of space exploration firm SpaceX’s Falcon rockets.
“Leaving (it) here in case it may be useful in the future,” Musk said Monday, adding: “Thailand is so beautiful.”
Tweet
However, the proposal to rescue the children by sending them out of the cave in the vessel was reportedly not welcomed by the head of the rescue team.
According to the BBC, Narongsak Osottanakorn said that the equipment brought by Musk’s team was “technologically sophisticated” but “not practical with our mission.”
CNBC understands that Musk visited the tunnel overnight to assess the conditions in the cave and receive feedback on the mini-submarine. The team is not planning on using the submarine as it is a backup option.
Musk later refuted the BBC story, claiming that Dick Stanton, co-leader of the diving team, was the expert on the matter. In a tweet, he attached what appeared to be email correspondence with Stanton.
Tweet
Musk from SpaceX and tunneling firm The Boring Company to the cave over the weekend to examine the situation. He mulled the possibility of pumping water through it to retrieve the boys and their coach, and also suggested inserting a nylon tube into the cave to inflate it with air “like a bouncy castle.”
Thai Prime Minister General Prayut Chan-o-cha said the tools Musk brought to Thailand were "useful" and could possibly be "modified and adjusted for future use," according to a transcript of a press briefing he gave on Tuesday.
“Multiple divers involved with the rescue said the mini-sub design was viable, and their feedback directly informed our engineering and testing,” a spokesperson for The Boring Company said in an emailed statement.
On Tuesday afternoon local time, it was confirmed by the Thai Navy Seals that all of the boys and their coach were rescued from the cave.
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0a0fc9156c31de0a3fc9fa1629df6de1 | https://www.cnbc.com/2018/07/10/main-street-cheers-trumps-pro-business-supreme-court-nominee-brett-ka.html | Main Street largely cheers Trump's pro-business Supreme Court nominee Brett Kavanaugh | Main Street largely cheers Trump's pro-business Supreme Court nominee Brett Kavanaugh
Small shops crowd the main street in the Elmwood Village neighborhood, in Buffalo, New York. Elmwood Village was named one of the 'Top 10 Great Places in America' by the American Planning Association.Christian Science Monitor | Getty Images
Main Street advocacy groups are largely cheering President Donald Trump’s nomination of Brett Kavanaugh to succeed Justice Anthony Kennedy on the U.S. Supreme Court, hopeful he will continue the Trump administration’s deregulatory tone, which has boosted sentiment among small businesses.
Kavanaugh, a federal appeals court judge, is considered an ideological conservative, expected to lean right on issues including business regulation. His nomination comes at a time when small business sentiment is holding near record highs, thanks in part to tax reform and deregulation under Trump. The latest read on optimism from the conservative lobbying group the National Federation of Independent Business (NFIB) is near record highs, with top concerns among small businesses turning to labor quality over taxes and regulation.
The NFIB has come out in support of Kavanaugh's nomination. The group previously filed a lawsuit seeking to overturn the Affordable Care Act that made its way to the Supreme Court, and the NFIB also spoke out against President Barack Obama’s nomination of Merrick Garland in 2016 — marking the first time the group weighed in on a Supreme Court nomination.
“Judge Kavanaugh has a proven record of interpreting the U.S. Constitution according to its original meaning and has ruled consistently against regulatory agencies whose interpretation of the law exceeds its statutory authority. Such a record helps to provide certainty for small business owners who ranked ‘Unreasonable Government Regulations’ as their second-most serious problem in NFIB’s most recent Small Business Problems and Priorities report,” said NFIB President and CEO Juanita Duggan.
VIDEO3:3203:32NFIB survey: Main Street optimism dips slightly but still historically highSquawk Box
The nonpartisan Small Business & Entrepreneurship Council also said it supports the nomination, repeating Kavanaugh’s own words Monday, that his “job is to interpret the law as written, and not make law or policy.”
“His legal opinions and decisions back up those words," Karen Kerrigan, SBE Council president and CEO, said in a statement. "Judge Kavanaugh’s judicial philosophy is especially critical for a Supreme Court justice as the U.S. Constitution guarantees and protects rights and freedoms that have kept our nation free and have made America the most entrepreneurial and innovative in the world. Sometimes, unfortunately, the executive and legislative branches overreach when it comes to policy or legislative actions.”
The group hailed Kavanaugh as an “impressive mainstream selection that all members of the U.S. Senate should get behind and support.”
In reviewing Kavanaugh’s past rulings, one can see why small businesses would support him for his deregulatory leanings. For example, he argued that the Environmental Protection Agency needed to take costs into consideration when deciding whether or not it should regulate power plant emissions. He also argued against the Consumer Financial Protection Bureau, citing that it gave a single director too much power.
The SBE Council’s Kerrigan, pointing to the CFBP ruling, told CNBC, “Judge Kavanaugh’s opinions related to unaccountable federal independent agencies are particularly important for small businesses, as navigating bureaucracy and not having the resources or recourse to challenge unfair rules is a daunting challenge for small businesses.”
But, Kavanaugh also deemed the individual mandate of the Affordable Care Act — part of President Barack Obama’s signature legislation and a thorn in the side of many small businesses — a legal tax.
Meanwhile, the nonpartisan National Small Business Association (NSBA) had a more muted response to the nomination, as the group believes it’s unlikely his opinions would differ from those of Kennedy’s when it comes to business issues.
“On key business issues, Kavanaugh’s nomination doesn’t signal any major likely shifts in the Court," said Molly Day, vice president of public affairs at the NSBA. "Justice Kennedy’s role as a swing-vote was primarily when it came to social issues, not business-focused issues.”
There’s no doubt Main Street will be watching the Senate Judiciary Committee hearings unfold to learn more about where Kavanaugh stands on key issues.
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c135bbc9fdf1657da66a50d15c3cc925 | https://www.cnbc.com/2018/07/10/mega-millions-jackpot-at-306-million-how-to-keep-your-win-quiet.html | Mega Millions jackpot hits $340 million. If you win, here's how to keep it under wraps | Mega Millions jackpot hits $340 million. If you win, here's how to keep it under wraps
With the Mega Millions jackpot swelling to $340 million for Friday night’s drawing, many ticket-holders probably are daydreaming about what they’d do with that kind of money.
They also should be thinking about how they'd protect their identity if they are lucky enough to win.
Experts say it’s the most important step to take, if possible, as a way to protect your sudden wealth. Unfortunately, it also isn’t always easy to do.
Photo by Justin Sullivan / Getty Images Staff
“The jackpots are so much larger than they were years ago, which automatically creates more interest,” said Jason Kurland, a partner at Rivkin Radler, a law firm in Uniondale, New York. “And social media lets news of a winner spread so rapidly that it’s impossible to control.”
While some states allow winners to easily remain anonymous, others do not. In some states, as long as you plan ahead, you can create a trust to receive your winnings as a way to avoid your name being attached to the money.
Of course, before you make any plans for claiming your prize, you should assemble a team of professionals who are experienced in helping lottery winners. That includes an attorney — this should be your first call — an accountant and a financial advisor. Choose these people carefully.
Largest Mega Millions jackpots
Rank Amount Date Number of winning tickets Where tickets were bought 1$656 million3/30/20123Kansas, Illinois, Maryland2$648 million12/17/20132California, Georgia3$536 million7/8/20161Indiana4$533 million3/30/20181New Jersey5$522 million 7/24/20181California6$451 million1/5/20181Florida7$414 million3/18/20142Forida, Maryland8$393 million8/11/20171Illinois9$390 million3/6/20072Georgia, New Jersey10$380 million1/4/20112Idaho, Washington
Here are some tips for trying to maintain a sense of privacy if you win big.
Your first urge might be to share your exciting news with, well, the world. However, the fewer people who know, the better. This is the case even if you are able to claim your prize anonymously.
“Obviously it may be impossible to keep this from immediate family, but news like this travels quickly,” said Kurland, who specializes in helping lottery winners. “Try to keep the circle of people who know as small as possible.”
Past prizewinners have discovered the hard way that long-lost friends and relatives can come out of the woodwork looking for loans or handouts.
VIDEO1:1501:15How to avoid lottery scamsDigital Original
If you won’t be able to remain anonymous when you collect your winnings, shut down your social media accounts in advance, Kurland said.
“The media will try to find as many pictures of a winner as possible, and social media is the first place to look,” Kurland said. “You also want to make sure there’s as little personal information out there like your phone number or address.”
While any determined snooper or scammer could probably track that information down, you don’t want to make it easy for them. If you have a landline phone, make sure it’s unlisted before you head to lottery headquarters.
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Kurland said he advises his big-jackpot winners to skip town immediately after claiming their prize.
“Just being out of town for a few days can help,” Kurland said. “In this 24-hour news cycle, the interest in a winner will hopefully disappear after a few days. If you can avoid being around for a week, you might be able to escape the initial exposure.”
Even in states that let you collect your winnings anonymously, lottery officials might be legally permitted to reveal the town where you live.
“Everyone there will be looking around to see who is spending more, who quit their job, who is taking big vacations,” Kurland said. “Winners should enjoy their new-found wealth, but if anonymity is a main concern, it can be a difficult balance to strike.”
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4c3db10c5ae17e01f78224a6b3083dc9 | https://www.cnbc.com/2018/07/10/microsoft-surface-go-is-nice-but-you-should-buy-the-surface-pro.html | Microsoft's new $399 Surface Go seems nice but right now you should still consider the Surface Pro | Microsoft's new $399 Surface Go seems nice but right now you should still consider the Surface Pro
Jeniece Pettitt
Microsoft announced its new Surface Go on Monday evening. It's a smaller 10-inch Surface with a starting price at just $399, which makes it a really compelling laptop-tablet hybrid for folks who don't want an iPad and who still want the full power of Windows. You might want to consider Microsoft's larger Surface Pro instead, though.
Consider this: the Intel Pentium Gold-powered Surface Go costs $399 but that doesn't include a keyboard, you just get the tablet. Also, that's for a very basic entry-level model with 4 GB of RAM and just 64 GB of storage. Most folks who are going to be running multiple programs at once are probably going to want to upgrade to the next model up, the Surface Go with 8 GB of RAM and 128 GB of storage.
That configuration costs $549 and, again, you still don't get the keyboard, which costs an additional $100. All in, with the keyboard and the model I think most people should buy, you're looking at $649.
Microsoft's Surface Pro typically costs $799 on the low end without a keyboard, but the company is currently selling a bundle deal Surface Pro with an Intel Core i5 processor, 8 GB of RAM and 128 GB of storage with a keyboard for $799. That bundle typically costs $1,159, so it's a pretty solid deal. The Core i5 chip is much more powerful than the Intel Pentium Gold in the Surface Go, too, which means you can run more powerful software, including power-hungry apps like Adobe Photoshop.
The trade-off is portability, since the Surface Go is smaller, but even the 12.3-inch Surface Pro is a really good on-the-go computer. I've never complained about the weight or size of it in my backpack; it's much more convenient than even my work-issued Dell computer for work on the road. Plus, there's a bit more room on the Surface Pro keyboard than there is on the miniaturized Surface Go.
Right now, if I was ordering a new Surface laptop, I'd go with the $799 Surface Pro and keyboard bundle Microsoft is offering. You just get so much more for the price, and I think it's worth the extra $150 over the $649 you'd pay for midrange Surface Go. But you should order it soon if you're in the market — Microsoft's bundle deals don't last forever.
VIDEO0:4300:43Microsoft Surface Precision Mouse ReviewDigital Original
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b80f8ecd3fee73ba30e3341a515d8057 | https://www.cnbc.com/2018/07/10/trouble-for-equity-markets-will-kick-in-around-2020-strategist-warns.html | Trouble for equity markets will kick-in around 2020, strategist warns | Trouble for equity markets will kick-in around 2020, strategist warns
Traders work on the floor of the New York Stock Exchange (NYSE) on March 23, 2018 in New York City.Getty Images
Investors could fall out of love with equities during the next 18 months as the impact of fiscal stimulus in the U.S. fades away, a strategist told CNBC on Tuesday.
But with trade tensions and political uncertainty currently “priced in,” there is still room for growth in equity markets, Mike Bell, global market strategist at J.P. Morgan Asset Management, said.
“It’s all about time horizon… If you look at the second half (of the year), I think there’s quite a lot of bad news priced in at the moment, both on the trade front, obviously political uncertainty outside of trade is pretty elevated, so we are still overweight equities,” Bell told CNBC’s “Squawk Box Europe.”
“Once you start to look beyond that (end of the year), the story becomes a little bit more complicated,” he added.
VIDEO3:2003:20Challenging second half of 2018 expected, strategist saysSquawk Box Europe
Fiscal stimulus in the U.S. prompted stock market rallies at the start of the year. However, with the Federal Reserve poised to announce further interest rate rises, there is concern that stock markets could enter sell-off mode. This is because higher rates dent profit margins for businesses and thus the available returns for investors.
Beat Wittmann, a partner at financial consultancy Porta Advisors, told CNBC’s “Squawk Box Europe” last week that rising rates are one of several factors increasing the chances of an economic recession next year.
“We have normalization of monetary conditions, that’s one thing, so we are in a late stage environment. Then we have this escalation in tariffs and trade… we have things like Brexit. All of these things lead to losses of investment confidence and I mean real economic investment confidence,” Wiitman said.
But, for Bell, the political and trade risks are already factored in so the real risks are more likely to commence around 2020.
“Once you start looking ahead to 2020, that fiscal stimulus starts to fade, you by then presumably have quite a lot of higher interest rates, so I think the risks for the economy start to build in the U.S. around 2020,” he said
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12dcf7b449c8250b68625feb1a4b4824 | https://www.cnbc.com/2018/07/11/amazon-providence-xealth-pilot-hospital-discharge.html | Amazon and start-up Xealth are planning a pilot where doctors would 'prescribe' products to be delivered after patients leave the hospital | Amazon and start-up Xealth are planning a pilot where doctors would 'prescribe' products to be delivered after patients leave the hospital
muratkoc | Getty Images
Amazon is talking with a start-up called Xealth and at least two hospital networks about a pilot project that would let doctors recommend bundles of medical products to their patients before they're sent home, and have those products delivered to patients' homes upon discharge, according to several people familiar.
The idea behind the pilot, which is still under review and is slated to start in a matter of months, is to provide patients discounted easy access to the medical supplies and other goods they need via Amazon Prime. Those who do not have a Prime membership or do not want to use Amazon would still be able to access the pilot via other e-commerce providers.
Xealth is managing the effort, according to two people familiar. Amazon has primarily been involved to provide guidance on how to set up the bundles and the reseller accounts, although there have been some discussions about how patients can access discounts via their health insurance or health savings accounts for certain items. The hospitals are Seattle's Providence Health Systems and University of Pittsburgh Medical Center (UPMC), both of which invested in Xealth.
The people requested anonymity as the conversations are still private. Amazon declined to comment. Providence, UPMC, and Xealth also declined to comment.
The pilot gives some insight into Amazon's many-faceted strategy as it attempts to tackle various problems in the lucrative health-care industry. The company has a wide variety of internal projects in the space, and is also talking to innovative start-ups such as Xealth and internet pharmacy PillPack, which it bought in June.
People with chronic ailments and parents of newborns are ideal customers for the e-commerce giant, as they have frequent and often urgent needs for medical and other products, and this pilot offers an opportunity to interact with them before they even leave the hospital.
For the hospitals, it’s a way to differentiate themselves by providing a superior customer experience. It also saves time for providers, as it’s common for patients to call if they lose or forget their discharge instructions.
Here's how the service might work: A patient who has just undergone a replacement knee surgery might go online to their personal page on the hospital's portal site to get online care instructions. Under the pilot, they would also see a recommendation of bundles of goods, like bandages, braces, and over-the-counter-meds, which could be shipped to the home that same day via Amazon. All of this could be "prescribed" into a basket of sorts to the patient by a doctor via the hospital's electronic medical record system.
Other use cases that have been discussed involve new parents, who might benefit from a wide range of products that Amazon sells, including diapers and thermometers. Dermatology is another. Patients might also soon get their prescription medicines delivered through Amazon, if the company moves in that direction after its PillPack buy.
A small number of hospital systems will be involved initially, but the white-labelled service is designed to scale to other health systems across the country.
Xealth, which has raised more than $8 million in funding from venture investors DFJ as well as Providence and UPMC, was developed with a mission "to help health care teams to order digital content and services as easily as they do medications," according to its website. That also includes a growing number of health apps, which are designed to help people manage their medical condition.
The start-up is based in Seattle, along with Providence and Amazon.
VIDEO1:4001:40Watch PillPack's CEO speak with CNBC two years before big Amazon dealSquawk Box
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fb20c4e40bdd8617ec7e650b614555ec | https://www.cnbc.com/2018/07/11/docusign-refreshes-board-after-ipo.html | Almost half of DocuSign's board departs just months after IPO | Almost half of DocuSign's board departs just months after IPO
DocuSign founder Tom Gonser (left) and Keith Krach, chairman and CEOSource: DocuSign
Three months after its stock market debut, electronic signature company DocuSign is losing almost half its board of directors, including its founder and chairman.
DocuSign said on Wednesday that five of its 12 directors are resigning and that three new people will be joining the board.
Tom Gonser, who founded DocuSign in 2003, is leaving, as is Keith Krach, the chairman and former CEO, who joined in 2009. The other departing directors are investors: Scott Darling of Dell Technologies Capital, Rory O’Driscoll of Scale Venture Partners and Jonathan Roberts of Ignition Partners.
VIDEO3:4803:48Docusign CEO on IPOSquawk Alley
"Each indicated that their decision to resign was not a result of any disagreement with us on any matter relating to our operations, policies or practices," DocuSign said in the filing. In a statement, the company characterized the changes as a "planned transition."
The board has appointed former GoDaddy CEO Blake Irving, Docker CEO and IBM executive Inhi Cho Suh as directors. Those three will join the board when the investors leave, while Krach and Gonser will depart at the end of the year.
Krach had been CEO until last year, when he was replaced by Dan Springer.
DocuSign, which competes with Adobe, went public in April at $29 a share and has since surged 79 percent to close at $51.98 on Wednesday. The stock was little changed after hours after falling slightly when the news was announced.
VIDEO0:3000:30Docusign's surprising beatClosing Bell
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7f205d5aa8ca89a91ea4b1d726f1b0d0 | https://www.cnbc.com/2018/07/11/ex-defense-secretary-to-trump-dont-treat-allies-worse-than-enemies.html | Ex-Defense secretary to Trump: 'Don't treat your allies worse than your enemies' | Ex-Defense secretary to Trump: 'Don't treat your allies worse than your enemies'
William Cohen, former U.S. secretary of defenseJoshua Roberts | Bloomberg | Getty Images
President Donald Trump's public criticism of European allies may put the nation at risk, former Defense Secretary William Cohen told CNBC on Wednesday.
"Frankly, we can not defend the United States without allies," said Cohen, who ran the Defense Department under former President Bill Clinton. "We need friendships in a world of great danger."
Trump, speaking in Brussels on the first leg of his European trip, Wednesday on German support for one of Europe's most contentious energy developments, the Nord Stream 2 natural gas pipeline that would run directly from Russia to Germany under the Baltic Sea. Trump said Germany is “totally controlled” by Russia, claiming it would be too reliant on Russia for energy.
The president has also frequently lamented Germany’s trade surplus with the U.S., and has threatened to slap tariffs on German cars, which would strike at the heart of the country’s export-led economy.
Cohen, now chairman and CEO geopolitical consultancy The Cohen Group, said Trump "insulting and humiliating leaders of other countries" undermines long-standing U.S. relationships.
"We've had the most successful military alliance in the history of this world," said Cohen, a former Republican U.S. senator and congressman from Maine. "It seems to be the president is going out of his way to publicly undermine that."
"Don't treat your allies worse than your enemies," he added. "You're treating your enemies better than your allies."
In response to the berating from Trump, however, Germany's Defense minister said, “I think we can cope with it."
The White House did not respond to a request for comment.
— CNBC's Sam Meredith and Natasha Turak contributed to this report.
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f7e3e9a6c3169bdde688eae40c04c5f0 | https://www.cnbc.com/2018/07/11/facebook-private-groups-breast-cancer-privacy-loophole.html | Facebook recently closed a loophole that allowed third parties to discover the names of people in private, 'closed' Facebook groups | Facebook recently closed a loophole that allowed third parties to discover the names of people in private, 'closed' Facebook groups
VIDEO1:3701:37Facebook closes privacy loophole after hearing from women’s groupNews Videos
Facebook recently closed a privacy loophole that allowed third parties to discover the names of people in private, "closed" Facebook groups. A Chrome extension that was made specifically for marketers to harvest this information en masse was also shut down prior to Facebook's move, after the social media network issued a cease-and-desist letter to the application's makers earlier this year, according to a spokesperson.
Facebook's decision came after members of a private group for women with a gene mutation associated with a higher risk breast cancer complained, concerned that their names might be exposed and open them to discrimination from insurers or other privacy violations. A spokesperson for Facebook said shutting down the ability to view members of closed groups was a recent decision based on "several factors," but was not related to this group's outreach.
The privacy issue comes at a time when Facebook is trying to re-position itself as a gathering place for friends, family and those with common problems and interests, in an effort to shake off negative connections to malicious online trolls, political rancor and alleged widespread violations of privacy. Facebook has also prioritized “groups” as a business strategy, with Mark Zuckerberg telling CNN last year: “If what you’re trying to do is run a group that has thousands of people, you need tools to help manage that.”
The company is also dealing with fierce regulatory scrutiny, particularly in the European Union, where new General Data Protection Regulation has expanded the definition of "personal data" far beyond social security numbers, to include the kind of data, like locations, names and genetic markers, that had been available publicly on members of Facebook's closed groups.
Andrea Downing helps moderate a members-only group for women that have a gene mutation associated with a higher-risk breast cancer, called BRCA. The group is kept closed, and the women who are members of it often don't want their identities known. The group did not use Facebook's most restrictive privacy setting, "secret," because that would have made it invisible to people searching the site.
Downing said women who join the BRCA Sisterhood Facebook group are often dealing with private issues that make them feel vulnerable, and social media had offered an inviting way to share their stories intimately with other women experiencing the same concerns. Privacy has always been top-of-mind for the Sisterhood community and other groups and others that cater toward BRCA-positive women, she said, because members post pictures of surgical procedures and share private stories of their experiences managing the health matter.
Downing grew concerned about the privacy of group members when she discovered an extension for the Chrome web browser called Grouply.io, which she saw could allow her to easily download names, employers, locations, email addresses and other personal details of all 9,000 people who had signed up for the group. She contacted a security researcher she knew who specialized in health care data, Fred Trotter, to see if her concerns were warranted.
Trotter discovered that "closed" Facebook groups had a privacy loophole that would make it possible for third parties to discover the names of people in them, and that the Grouply.io application was made specifically for marketers to harvest this information en masse. Requests for comment submitted to a forwarding email for the Grouply.io application, which is no longer available, were not answered.
Trotter further discovered he could glean these details manually, without use of the browser extension. On May 29, he submitted a report on the problem to Facebook. A Facebook spokesperson said the social media network had previously made member lists for closed groups "viewable," but the ability to download the full list at once was not a feature on the platform.
On June 20, Trotter and the BRCA members received a response from Facebook, which included an acknowledgement that member lists for these closed groups were available publicly. According to the Facebook response provided by Trotter, a company representative said: "Our Groups team has been exploring potential changes related to group membership and privacy controls for groups, with the goal of understanding whether providing different options can better align the controls with the expectations of group administrators and members. That work is ongoing and may lead to changes that address some of your concerns going forward."
A Facebook spokesperson confirmed the interaction and said the company continues to emphasize its commitment to the groups concept in allowing individuals to share sensitive experiences.
Members of the BRCA group replied to Facebook that they were dissatisfied with the response on June 26. By June 29, the ability to harvest details in this way was shut down on Facebook, according to Trotter and Downing.
During his research, Trotter found that he could use Grouply.io or a manual process to download the personal details of members of other closed Facebook groups – including other sensitive circles, such as those meant for people recovering from drug addiction, men living with HIV or individuals identifying as gay in countries where same-sex partnerships are criminalized. That functionality has since been disabled.
CNBC contacted three other security professionals who verified that the ability to download member information from "closed" groups was once enabled, but now appeared to be unavailable.
Data such as this is often used in a variety of ways for marketing goods and services, especially by companies looking to reach an audience of self-selected individuals who may be candidates for specific health treatment. Consumers might not realize that sharing information in a "confidential" context on a social network is not the same as sharing it in a medical context, one expert said.
“A genetic test result like BRCA is protected by HIPAA [the Health Insurance Portability and Accountability Act] and it can’t be shared with marketers, if it is in a medical record. But a social networking site is not covered by HIPAA,” said Deven McGraw, chief regulatory officer for Ciitizen, a health information sharing application. Ms. McGraw, who previously served as deputy director of health information privacy for the U.S. Department of Health and Human Services, said many people mistakenly believe their health information is regulated in the United States regardless of where that information is held.
Facebook may be facing challenges beyond the regulation of health care data, she said. The issue of whether users of a “closed” group had a reasonable expectation of privacy will be one that may catch the attention of EU regulators under GDPR, or even the U.S. Federal Trade Commission, which investigates deceptive practices related to privacy, she said.
VIDEO3:5903:59Expect FTC to fine Facebook $5B, predicts Height Analytics senior analystClosing Bell
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d7abebc0479e04c5600b3c6810b1c5d7 | https://www.cnbc.com/2018/07/11/gao-boeing-spacex-delays-may-cut-us-astronauts-off-from-iss.html | Government watchdog warns Boeing, SpaceX delays may cut US astronauts off from International Space Station | Government watchdog warns Boeing, SpaceX delays may cut US astronauts off from International Space Station
The SpaceX Crew Dragon, left, and the Boeing Starliner capsule under construction. Source: SpaceX; Boeing
NASA is likely to further delay its program to send U.S. astronauts to the International Space Station using capsules developed by Boeing and SpaceX, according to a report published Wednesday by the Government Accountability Office.
"Further delays are likely as the Commercial Crew Program's schedule risk analysis shows that the certification milestone is likely to slip," the GAO said in the report.
"Additional delays could result in a gap in U.S. access to the space station as NASA has contracted for seats on the Russian Soyuz spacecraft only through November 2019," the report says. NASA "does not have a contingency plan for ensuring uninterrupted U.S. access."
Boeing and SpaceX did not immediately respond to CNBC requests for comment.
Commercial Crew is NASA's solution to once again launch U.S. astronauts from U.S. soil. Since the end of the Space Shuttle program in 2011, astronauts have flown aboard Russian Soyuz — at a cost to NASA of more than $70 million per seat. NASA's new program is competitive, with contracts up for grabs for Boeing to win with its Starliner capsules and SpaceX with its Dragon capsules.
The development programs for both companies' capsules have been steadily delayed, with each expecting to complete uncrewed test launches in August at the earliest. NASA was expected to certify Boeing in December 2019 and in January 2020, according to analysis earlier this year, but the GAO says further delays are expected. The existing timeline already causes a one-month gap, at minimum, in NASA's contracts for seats with Russia and the first launches of Boeing and SpaceX.
"Senior NASA officials told us that sustaining a U.S. presence on the ISS is essential to maintain and operate integral systems, without which the ISS cannot function," the GAO said.
VIDEO2:5402:54Take a look inside SpaceX's rocket factoryCNBC Disruptor 50
NASA awarded the current contracts in 2014. Since then, the program has had 13 quarterly reviews, according to the GAO, with Boeing reporting delays in key program developments during seven reviews and SpaceX reporting delays at nine of them. As recently as June, NASA officials told the GAO that the publicly known dates for the remaining development, testing and certification "may change soon," the report says.
"As a result, NASA is managing a multibillion dollar program without confidence in its schedule information as it approaches several big events, including uncrewed and crewed flight tests," the GAO said.
In a February 2017 report, the GAO found Boeing and SpaceX would be unable to meet the original 2017 certification goal, expecting to delay until 2018. NASA developed a contingency plan in response, purchasing additional seats on Russia's Soyuz capsule and giving access to the ISS through 2019.
While both contractors continue to make progress, neither has "yet provided official updates to their schedules to NASA," the report said. In addition, NASA has "not fully shared information with Congress regarding the risks of future schedule delays," GAO says, and legislators are unaware of the growing possibility of a scheduling gap in space station access.
If Boeing and SpaceX can stick to the current schedules, the GAO said, "a gap in access to the ISS is not expected." But NASA is already considering other options, according to the report. One option is to "refine the remaining Soyuz launch schedule" for access into January 2020; another is to turn some test flights into operational flights by adding more crew members and extending the length of the flights.
The report includes five recommendations to NASA. The GAO said the agency concurred with three — the need for a contingency plan, more documentation and the need to restructure the "dual hatted" safety technical authority — but only partially concurred with the GAO's recommendation that the agency more clearly define its risk tolerance level for the loss of crew. NASA did not concur with the GAO's recommendation that NASA should include Commercial Crew schedule updates in its quarterly reports to Congress.
VIDEO2:0702:07Boeing one step closer to launching spacecraftSquawk Box
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78489b247716ffbc6fb6822481a46157 | https://www.cnbc.com/2018/07/11/is-the-us-uk-special-relationship-still-special.html | Is the US-UK ‘special relationship’ still special? | Is the US-UK ‘special relationship’ still special?
The U.S. and U.K. have prided themselves on sharing a cultural, political and commercial bond that has long been called “the special relationship.”
But with President Donald Trump tearing up the status quo in terms of trade and diplomacy, does that bond still exist?
“I think the relationship between Britain and America has always been very important. For a hundred years, it really has been special. But I personally, as ambassador, didn’t use the term ‘the special relationship’ because lots of other people have special relationships with America,” Peter Westmacott, former U.K. ambassador to the U.S., told CNBC on Tuesday.
“But if you look at defense and intelligence and investment, trade and business, culture and movies and television, and a commonality of interests and values, then Britain and America have been hugely important for each other for a long time.”
U.S. President Donald Trump, left, and Theresa May, U.K. prime minister.Marlene Awaad/Bloomberg via Getty Images
The term “special relationship” was first used in 1946 by then-prime minister Winston Churchill, with the U.S. and U.K. having overcome the global turmoil, terror and loss of life of World War II together.
The relationship has since then been marked by ongoing commercial and cultural links, helped no doubt by a shared language, as well as shared military operations, the fight against the Islamic State militant group in Syria and Iraq being the most recent joint action.
But with Trump in the White House, the rules of diplomacy have been ripped up and the dynamic between the U.S. and the U.K., and the rest of the world, is changing. Whether the “special relationship” can survive such changes is hard to tell.
While the U.S. and the U.K. might have a lot in common, Trump’s inauguration as president heralded a new uncertain era for the “special relationship,” although the British government was quick to congratulate Trump on his victory and pledged to work with him.
Prime Minister Theresa May alluded to the relationship, saying she hoped the two countries would "strong and close partners on trade, security and defense.”
But Trump has since ruffled the feathers of both British politicians and the general public with a range of controversial comments on women, immigrants, Mexicans and Muslims. Indeed, his controversial remarks and policies have made it awkward for the U.K. to even host the former businessman this week.
In fact, such was the opposition to Trump’s upcoming three-day visit, from Thursday evening until Sunday, that an initial invitation to the U.K. for a state visit — where the head of state Queen Elizabeth II would host the president in a visit full of pomp and pageantry — was downgraded to a “working visit” amid concerns over likely widespread protests.
As many as 1.8 million Britons signed a petition in 2017 protesting against the then-planned state visit. Despite the downgrade, U.K.-wide demonstrations against Trump are still planned, with an expected 50,000 people likely to gather in London on Friday for a “Stop Trump” protest.
The itinerary for the three-day visit appears to be designed to keep Trump as far away as possible from the capital to avoid any embarrassment by the protests.
Permission has been granted by London Mayor Sadiq Khan, , to allow a 20-foot-tall balloon depicting Trump as a baby to be flown over the capital. The campaigners who paid for the balloon have said it represents Trump’s character as an "angry baby with a fragile ego and tiny hands," but it has drawn criticism for being disrespectful.
VIDEO4:0304:03Lord Jones calls Trump baby balloon ‘disgusting’Squawk Box Europe
Digby Jones, former director-general of the Confederation of British Industry (CBI), told CNBC on Wednesday he thought it was “disgusting” that the Trump baby balloon was being allowed.
“He’s our biggest trading partner, he’s democratically elected, he is our biggest inward investor and more Americans go to work every day working for a company headquartered in Britain than any other country on Earth. And on that basis, we should actually afford him the courtesy which he singularly fails to afford anyone on the planet and we should behave completely impeccably,” he told CNBC’s “Squawk Box Europe.”
“I think, personally, that it’s disgusting that they’re going to put up an inflatable baby up in a nappy. Would we like it if he put an inflatable Queen up over the White House with a nappy on? We’d hate it,” Jones said, although he accepted the right to protest as “a pillar of a free society.”
“I’m not going to say we should ban it, I just think we are behaving wrongly if we lower ourselves to the sort of level he swings every day… the point is the American people elected this man and we should be dealing with him.”
Positive vibes or none, there remains a number of key policy differences at a U.S.-U.K. governmental level.
“There is a strong relationship between the U.K. and U.S., it’s historically strong, it’s strong in trade, in economic relations, in defense, intelligence and strong in people to people exchanges, “ Nigel Sheinwald, a former U.K. Ambassador to the U.S. told CNBC Wednesday.
“But President Trump has introduced policies which are not the policies of the British government or many other governments in the world, certainly not in Europe – on the Middle East, climate change and on trade.”
VIDEO3:4603:46There's concern in Britiain about a divide opening up with the US, former diplomat saysStreet Signs Europe
The U.K. opposes Trump’s trade tariffs, has argued against his withdrawal from the Iranian nuclear pact, and has made commitments to tackle climate change. Trump, on the other hand, has disrupted agreements on all those issues. Even Brexit, over which May’s government is more divided than ever, Trump is a supporter of the U.K. leaving the European Union.
Whether the U.K. could strike an advantageous trade deal with Trump, whose political mantra is to put “America First,” is far from certain.
“Right now, I think amongst the peoples of the two countries, when you look at the polling on this, it’s still very strong — people still have an affection and respect for America as leader of the free world,” former ambassador Westmacott said.
“But, at the government level, the facts are pretty clear that on a number of issues that are important for Britain and where we’ve traditionally seen eye-to-eye with the Americans — like climate change and free trade, like the Middle East and Arab-Israeli issues, like the Iran nuclear deal… the EU and NATO. Those are all areas where President Trump has up-ended the normal way of seeing things and the normal ways Britain and America have seen eye-to-eye.
“So, on those things we’re not in the same place and I very much hope we’ll get back to it.”
Trump’s position on trade has recently rattled his relationship with Downing Street — let alone with China, Mexico and Canada — with the U.K. as an EU member, for now, unsuccessfully seeking an exemption to tariffs on steel and aluminum.
The British government has called the decision to press forward with tariffs as “unjustifiable” and said that “any claim that U.K. steel and aluminum imports harm U.S. national security is without foundation.”
Trump has widely criticized the U.S.’ biggest trading partners and allies, saying that they have taken advantage of the U.S. and built up trade surpluses. Trump has announced this year sweeping tariffs on a range of imported goods – mostly from China – but has also threatened neighbors and allies Canada, Mexico and the EU.
Digby Jones said the entire trade row at the moment was characterized by Trump “pushing it out as far as he can go, he’ll give himself some room for manoeuver and then he’s going to come back.”
But he added it was a “mistake” for the U.S. to alienate its friends and allies, particularly Britain, which has always fought alongside the U.S.
“What I would just say to him is, ‘Everybody in life Donald, and especially in international diplomacy, and especially when you’re America, needs friends. You don’t always need them all the time but you need your friends.
“And beating up on Britain is possibly a silly thing to do because history shows that, with the exception of Harold Wilson and the Vietnam War, Britain has sent its blood and treasure alongside Americans on every single occasion that it’s being called on to do so.”
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e46aadda99c4ca244da45ac9845c5c6e | https://www.cnbc.com/2018/07/11/starbucks-to-charge-british-customers-for-using-paper-cups.html | Starbucks to charge British customers for using paper cups | Starbucks to charge British customers for using paper cups
Zhang Peng | LightRocket | Getty Images
Starbucks is to test a 5 pence (7 cent) paper cup charge at all 950 of its coffeehouses in Britain.
The levy will be introduced on July 26 and comes after a three-month trial at Starbucks locations in London, the coffee giant said in a statement Tuesday. Currently, Starbucks customers who purchase drinks using reusable cups receive a 25 pence discount.
For the London trial, Starbucks worked with environmental charity Hubbub, which produced a report on how the charge affected customer behavior. That analysis showed that the percentage of customers bringing in their own cup grew from 2.2 percent before the trial to 5.8 percent during it.
Starbucks said that the results indicated that a national rollout of the 5 pence charge — alongside in-store communication and staff training — would have an impact on cutting the use of paper cups.
“We saw encouraging results from the first three months of this trial with Hubbub, and what stood out to us was the positive response we had from our partners (employees) and customers, who continue to push us to innovate and find ways to reduce waste,” Martin Brok, president of Starbucks Europe, Middle East and Africa, said in a statement.
“Extending this to all our stores across Britain is an exciting step and we’re hoping this charge will remind customers to rethink their use of single-use plastic as it has with plastic bags.”
At the beginning of this week, Starbucks laid out plans for eliminating single-use plastic straws from all of its stores by 2020, joining a growing list of big businesses looking to reduce their use of plastic.
In June, for example, McDonald’s said it would move away from using plastic straws in its U.K. and Ireland restaurants. The business said a phased rollout of paper straws in all 1,361 of its sites in the two countries would begin in September and be completed by 2019.
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2b9349818b80d60b339db5578ea9ddb8 | https://www.cnbc.com/2018/07/11/start-up-exec-says-his-call-for-60000-bitcoin-is-still-possible-this.html | Start-up exec says his call for $60,000 bitcoin is still possible this year | Start-up exec says his call for $60,000 bitcoin is still possible this year
VIDEO2:3002:30Discussing the future of bitcoin pricesSquawk Box Asia
Major cryptocurrencies may be off their December highs on the price front, but developments on the regulatory and infrastructure front continue to move ahead.
That's leading some in the space to remain relatively bullish on prices.
"Back then, December, price was at $20,000 all-time high. I predicted for 2018, we're going to see $5,000 and $60,000. So $5,000, we pretty much hit it, so let's see if we can do the $60,000. I'm still quite confident," Julian Hosp, president and co-founder of crypto wallet and card start-up TenX, told CNBC's Akiko Fujita at the RISE tech conference in Hong Kong.
Although the largest cryptocurrency hasn't quite dipped to $5,000, it has come relatively close, touching its lowest level (around the $5,700 mark) since November at the end of last month, according to CoinDesk data.
Since then, the cryptocurrency has recouped some of its recent losses, last trading at $6,363.93 at 11:00 a.m. HK/SIN on Wednesday, according to CoinDesk's bitcoin price index. Still, bitcoin is currently trading more than 67 percent below its all-time high of nearly $20,000, which it hit in December.
A "massive positive event" would need to occur this year to get bitcoin to the $60,000 mark in 2018, Hosp acknowledged, adding that that could come in the form of a bitcoin exchange-traded fund or a country announcing something that is "very, very positive for bitcoin."
In the situation that such an event fails to materialize this year, Hosp said it would "definitely take a bit longer" for the virtual currency to hit $60,000.
With the halfway mark of 2018 having already passed, Hosp said bitcoin will have to be over $10,000 in August for it to eventually reach his target. "If we see over $10,000 by the end of August, we can see the $20,000, then the press, the media is going to come in, and we can still see the $60,000 this year," he said.
Some of the pressure faced by cryptocurrencies this year has been due to the space coming under regulatory scrutiny. Still, there was some relief after the Securities and Exchange Commission clarified last month that bitcoin and ether were not securities.
As for the widely followed ethereum, one of the platform's founders told CNBC on Wednesday that its community wasn't preoccupied with price: Joseph Lubin, who is also the founder of blockchain software firm ConsenSys, said developers were focusing on building infrastructure.
"We let price take care of itself," he said. Still, he acknowledged there are benefits to increased attention on the platform's token, technically called ether.
"If price is high or if price shoots up and down, it’s actually great for us because it draws attention to our ecosystem, it draws entrepreneurs, it draws technologists and all of that interest drive fundamental value," Lubin said.
Ether on Wednesday traded at $435.36, according to CoinDesk.
Ethereum, a blockchain platform, is currently in the process of building out its infrastructure. Lubin said second layer will build on the trust in the first infrastructure layer to enable "tens and hundreds of thousands of transactions per second."
VIDEO1:4901:49'We let price take care of itself,' says Ethereum co-founderStreet Signs Asia
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606e8b0f74a8c3733b8eb17504c326fb | https://www.cnbc.com/2018/07/12/apple-announces-300-million-clean-energy-fund-in-china.html | Apple announces $300 million clean energy fund in China | Apple announces $300 million clean energy fund in China
An Apple store in Hangzhou, China.Zhang Peng | LightRocket | Getty Images
Apple in partnership with several of its suppliers announced on Thursday a $300 million fund for investing in renewable energy projects in China. The China Clean Energy Fund aims to produce at least 1 gigawatt of energy — or enough to power about 1 million homes — through fully renewable means over the next four years.
Renewable energy has long been part of Apple's corporate DNA. As far back as a decade ago, Apple was already scoping out renewable energy sources for its North Carolina data center. The company commissioned a Bay Area solar contractor build a dedicated solar energy facility for the center, and ended up with three local solar farms and a bio-gas fuel-cell for the data center, Fast Company reported.
In April it debuted Daisy the recycling robot, which dissembles old iPhones, and announced that its global facilities across 43 countries are powered by 100 percent clean energy. More recently, the company has turned its focus toward its supply chain, working with U.S. and Canadian aluminum suppliers to cut down on greenhouse gas emissions.
"Apple’s mission has never wavered. We are here to change the world... it’s why we continuously strive to do more with less—reducing our impact on the Earth we all share, while expanding and redefining the possibilities ahead," Apple wrote in its 2018 environmental responsibility report.
The China Clean Energy Fund continues those efforts and, if successful, will serve as a model that may be replicated in other markets.
As energy demands in China have skyrocketed, the Chinese government has made a considerable push toward clean energy sources, both to help clean up air quality in China's cities and to invest in the industries of the future, according to David Sandalow, inaugural fellow at Columbia University's Center for Global Energy Policy.
"Traditionally China has relied on coal, but in the past several years renewable energy has grown dramatically and is starting to take away part of coal’s market share — and with a strong push from China’s government," Sandalow said.
Thanks to those efforts, China last year installed more solar panels than the rest of the world combined and led the world in wind and hydro-power.
China may be a receptive market for incubating renewable energy initiatives, but for smaller companies with limited resources, transitioning to clean energy can be challenging. Apple hopes the scale of the China Clean Energy Fund will give fund participants greater purchasing power to pivot toward clean energy.
The first wave of Apple suppliers participating in the fund include Catcher Technology, Compal Electronics, Corning Incorporated, Golden Arrow, Jabil, Luxshare-ICT, Pegatron, Solvay, Sunway Communication and Wistron. The China Clean Energy Fund will be managed by DWS Group, a subsidiary of Deutsche Bank.
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0e08b63964a376671a895b85113128d1 | https://www.cnbc.com/2018/07/12/bitcoin-crypto-cryptocurrency-ether-etheruem-digital-currency.html | These five finance experts are still excited about cryptocurrency – here’s why | These five finance experts are still excited about cryptocurrency – here’s why
VIDEO4:2904:29Five bullish experts on bitcoinInvestor's Edge
Bitcoin had has a rough year. The cryptocurrency plummeted from $20,000 at the end of 2017 to under $6,000 by June. But the bitcoin faithful remains excited, and some experts see the digital currency surpassing its record highs from the end of 2017.
Chamath Palihapitiya, the CEO and founder of Social Capital, predicted on CNBC’s "Fast Money" in December that bitcoin would be worth $1,000,000 in 20 years. In May 2018, he said bitcoin is a valuable form of insurance since it is “fundamentally not correlated” to the index.
In June, the tech investor tweeted that he believed bitcoin would surpass the price of gold:
https://twitter.com/chamath/status/872537715534733312
Tom Lee, of Fundstrat Global Advisors, told CNBC in June that bitcoin is a “great store of value.” In a different June interview, Lee predicted bitcoin would be be worth more than $20,000 by the end of 2018.
Brian Kelly, founder of BKCM LLC, said that he likes both bitcoin and ethereum when it comes to cryptocurrencies. However, he favors ethereum over bitcoin.
Ran Neu-Ner, founder and CEO of OnChain Capital, warned that bitcoin is just in the early stages of its existence. He told CNBC in February, “We haven’t even got to the start line of cryptocurrencies.” In a June interview, Neu-Ner compared bitcoin to “digital gold.”
Bitcoin bears remain unconvinced, however. Berkshire Hathaway’s Charlie Munger, for example, called bitcoin “worthless artificial gold” in an interview with CNBC in May.
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d75c063747f2d2ca4575945a9c7068b5 | https://www.cnbc.com/2018/07/12/instant-payment-is-growing-up-its-not-just-for-millennials-anymore.html | Instant payment apps grow up. They're not just for millennials anymore | Instant payment apps grow up. They're not just for millennials anymore
Tara Moore | Getty Images
You know a platform or tech is successful when it becomes a verb. A payments app owned by PayPal joined the ranks of Google and FedEx (at least in verbal usage) a few years ago when millennials began "Venmo-ing" each other to settle bar tabs.
Mobile peer-to-peer payments now include Square, Apple Pay Cash and Google Pay, among others. Less than a year ago, Zelle entered the space and quickly became a huge player.
One reason for its success: Zelle is not only a standalone app, like Venmo. In addition, it integrates with a user’s existing banking app.
The digital payments network now works with Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, US Bank, SunTrust and Wells Fargo.
VIDEO3:2403:24Mobile payments coming-of-ageSquawk on the Street
People tend to trust financial institutions, making mobile payments more attractive to older generations, according to Zelle, which recently studied how different age groups behave and think about P2P apps.
Zelle questioned more than 9,000 U.S. mobile-savvy millennials, Gen Xers and boomers who own smartphones, are aware of P2P and have used online or mobile banking.
“What stood out is the openness among older generations to start actively incorporating P2P services into their day-to-day banking habits,” said Ravi Loganathan, head of digital strategy and operations at Early Warning, Zelle’s network operator.
Since security is a top issue for Gen X and boomers, removing that barrier opened the door to many more users.
The generations still approach P2P differently. Here’s what you may or may not know about P2P and millennials, Gen X and boomers.
Restaurant checks and bar tabs are still popular. But that’s not all.
“Millennials use mobile payment options for everything,” said Alicia McElhaney, founder of She Spends, a website and newsletter to help women close gaps in wages, investing and board seats.
If you split rent and utilities, Venmo, Zelle and similar platforms are useful for paying your half of the bill. Those expenses can really mount up, especially in cities where the cost of living is high. “Millennials also use these payment platforms to split vacation costs, whether for rentals, plane tickets or food,” McElhaney said.
P2P transactions can be a useful way to manage your cash and maintain quicker access — provided the app immediately transfers the funds to your bank account.
“If your grandparents write you a check and you don’t cash it for two months, that could be a problem,” said Loganathan at Early Warning. Checks can take three to five business days to clear, which can be a pain point for people whose cash flow is limited.
After a transaction in some platforms, the money is parked in that third-party app until the consumer actually requests the funds move back to their bank.
Gen Xers were the age group most likely to say they’d rather have their money under their mattress than in a third-party app where their money sits idle.
One behavior is consistent among all demographics: Everyone wants to be paid right away for money they’ve laid out. Let's say you bought concert tickets for next month. Zelle asked survey respondents whether they'd want to be paid back immediately, whenever is good or when the credit card statement comes in. Two-thirds of each group said they’d like the money back ASAP.
About a third of millennials ask to be paid back within minutes, according to Zelle’s study, a sign of that generation's reluctance to be parted from their money.
To compare, 40 percent of boomers don’t ask for repayment: They wait for the money to show up in their accounts.
It’s easy to move money around. The Zelle model is a financial ecosystem that lets different institutions send money from bank to bank, Loganathan said.
“You’re a Chase customer, but you’re able to send money to Bank of America without putting in your bank credentials,” Loganathan said. “They’re all on the Zelle network.”
All generations use digital payments to show their love.
“Gifting is a key piece for boomers,” Loganathan said. From cash birthday or wedding presents, Gen X and boomers send money to their kids through P2P.
“I have friends who, if they know someone is having a bad day, will Venmo them $15 for a manicure or a nice meal out,” said She Spends' McElhaney.
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e954bd170f23a650ed2d644188060fcc | https://www.cnbc.com/2018/07/12/jail-and-opioids-keep-more-men-out-of-the-us-workforce.html | Jail and opioids keep more men out of the workforce in the US than in other big economies: Goldman | Jail and opioids keep more men out of the workforce in the US than in other big economies: Goldman
Inmates at the Adelanto Detention Facility.Getty Images
Men of prime age in the U.S. participate in the labor force at a lower rate than men in other advanced economies, a gap partly explained by higher incarceration rates and opioid abuse, according to research from Goldman Sachs.
The male participation rate is now more than 3 percentage points below the average of other developed markets, and nearly 7 percentage points behind Japan. One-third of the difference can be explained by the much higher number of men in jail and prison in the United States compared with other countries and the scourge of health problems associated with drug and painkiller abuse, the research said.
The unemployment rate was 4 percent in June, according to labor data released last week. Overall, workforce participation rose to 62.9 percent from 62.7 percent, but it was a surge in female workers without college degrees that accounted for most of that increase, according to Goldman Sachs senior economist Daan Struyven, who wrote the research note earlier this week.
A notable trend was the gap between men in the U.S. aged 25 to 54 and their counterparts in other big economies. Participation was 89.1 percent versus 92.3 percent for the larger group. The comparison countries are Japan, Germany, France, Britain, Italy, Canada, Netherlands, Belgium, Sweden, Australia, Norway and New Zealand.
About half a percentage point of that difference results from the effect of incarceration on employment, including the difficulty of getting hired with a felony record, Goldman said.
There are 2.1 million people locked up in the U.S., according to the World Prison Brief, about 90 percent of them men. About one-fifth are detained before trial.
Goldman's research noted the trend of lower male participation in the U.S. workforce is long term, consistently below the rate of male participation in other economies since at least 1998. But the gap 20 years ago was less than 2 percentage points.
Another contributor to the gap can be traced to opioid use, estimated at 6 percent of the U.S. population versus slightly more than 3 percent in Australia and 1 percent or less in the U.K., Sweden, Germany and Belgium, the Goldman research noted.
Globally, labor force participation has seen the lasting effects of technology and trade cutting into participation. Machines have replaced lower-skilled or less-educated workers. And global trends such as increases in family income have lowered the labor supply in many developed markets.
But, Goldman said, the U.S. stands out. In addition to higher incarceration and opioid use rates, the U.S. has less supportive retaining and job-search assistance policies. It spends 0.3 percent of its economic output on active labor market policies compared with the average of 1.3 percent by other developed economies, according to data by the Organization for Economic Cooperation and Development cited in the research.
Even though the incarceration rate peaked 10 years ago, the effects are still rippling through the U.S. economy, Goldman said. "It will likely take many years before we see a corresponding decrease in the number of former prisoners, mostly because prisoners tend to be young, with a median age in the mid-30s," Struyven wrote in the note.
Prescription opioid use is also down since 2012, the paper noted, citing data from the CDC. But the same data show a shift to heroin and other illegal opioids and a steady rise in drug-related deaths.
— With reporting by Michael Bloom
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2ff43c9bc4659e9c203f484c25f9be11 | https://www.cnbc.com/2018/07/12/keurig-dr-pepper-merger-brings-defection-acquisition-and-new-drama.html | Keurig Dr Pepper's first week post-merger brings a defection, an acquisition and new volleys in coffee wars | Keurig Dr Pepper's first week post-merger brings a defection, an acquisition and new volleys in coffee wars
Source: Fiji
It's barely a week into the closing of the mega-merger that created Keurig Dr Pepper and already the beverage industry has seen a defection, an acquisition and a further jolt in the coffee wars.
The deal, which closed Monday, creates a beverage giant with $11 billion in revenue that combines Dr Pepper Snapple's drink and distribution network with Keurig' Green Mountain's coffee business. The giant is backed by JAB Holding, the investment firm that has put together a coffee-fueled empire that already includes Krispy Kreme and Panera Bread.
This week's shake-up, though, is among brands far smaller than the iconic drinks for which both companies are named. Instead, it's within the collection of trendy beverages Keurig Dr Pepper distributes through its "Allied Brands" network. A sizable chunk of the company's revenue comes from distributing drinks made by other companies, including brands like Fiji Water, BodyArmor and Vita Coco. The more they distribute, the greater the profits. Those beverages are comparatively tiny against the country's biggest sellers — yet yield inordinate power as sales of the largest legacy drinks lag.
That might was tested when Dr Pepper Snapple's merger with Keurig triggered an opportunity for some of Dr Pepper Snapple's Allied Brands brands to renegotiate or leave the network all together. Fiji this week announced it was defecting to build its own distribution system. Another Allied Brand, Big Red, this week signed an agreement to sell to Keurig Dr Pepper, a spokeswoman for the beverage giant told CNBC.
The deal valued Big Red, described as "a deliciously different red soda," at more than $200 million, a source familiar with the situation tells CNBC, requesting anonymity because the terms of the deal are confidential.
A spokeswoman for Keurig Dr Pepper told CNBC, "We currently expect to maintain many of our existing Allied Brand partners and add new ones, while also expecting that we may choose to exit others, where doing so makes strategic sense for Keurig Dr Pepper."
The loss of Fiji, while minuscule to Keurig Dr Pepper's bottom line, is a bruise nonetheless.
Fiji is one of the best sellers in the Allied Brands collection, sources familiar with the situation tell CNBC, requesting anonymity because the information is confidential. When Dr Pepper Snapple was still a stand-alone company, it said Fiji's sales were roughly 2 percent of its total revenue.
The premium water brand is owned by privately held The Wonderful Co., the $4 billion owner of POM Wonderful pomegranate juices, Landmark Wines, Wonderful Almonds, and other trendy drinks and snacks.
Premium water is among the beverage industry's fastest-growing categories as consumers eschew sweeteners and artificial ingredients. It provided a balance to Dr Pepper Snapple's legacy portfolio of drinks dominated by sugary soda brands, like 7UP, A&W Root Beer and Crush.
Fiji therefore gave Dr Pepper Snapple an opportunity to tap into its growth and the halo effect of displaying it alongside its older brands like Snapple in grocery stores.
"Allied brands are how Dr Pepper Snapple accesses innovation in emerging and high-growth categories, both rapidly and for a low cost of capital," noted Keurig Dr Pepper CEO Bob Gamgort earlier this year in an investor presentation.
Dr Pepper Snapple has demonstrated how seriously it considered the risk of losing one of its larger Allied Brands. It forked over $1.7 billion to buy fruity antioxidant drink Bai Brands last year after it put itself up for sale.
"We had been in discussion with Fiji for some time and were unable to reach an agreement that was in the best interests of Keurig Dr Pepper," a spokeswoman for the company said.
Fiji did not respond to requests for comment.
VIDEO3:2303:23Dr. Pepper Snapple to merge with Keurig Green MountainSquawk Box
The Fiji news casts uncertainty on whether other crown jewels may likewise leave or seek to sell themselves to one of Keurig Dr Pepper's competitors.
About 18 percent of Dr Pepper Snapple's 2017 revenue came from distribution deals with beverage companies it doesn't own, like its Allied Brand partners, according to a regulatory filing from 2017. The same filing said that growth for those brands were driven primarily by water brands BodyArmor, Core and Fiji.
VitaCoco plans to stay with Keurig Dr Pepper, its CEO told CNBC through a spokeswoman. BodyArmor and Core did not respond to requests for comment.
The decision to leave behind Keurig Dr Pepper's distribution network would not be made lightly. Creating a distribution network from scratch is challenging and expensive. Beverage distribution in the U.S. is dominated by its three largest players, Keurig Dr Pepper, Coca-Cola and PepsiCo.
Dr Pepper Snapple's distribution network was a large part of the appeal to Keurig in their merger.
Meantime, brands that look to tap distribution by selling to Atlanta-based Coca-Cola or PepsiCo in Purchase, New York may also face challenges. The soft drink giants have both bought upstart brands over the past few years. They have also been cautious about paying a lot for large drink brands that may fall out of favor.
And Keurig Dr Pepper has plans to continue to support partnership with brands, even if it does not own them.
"We are very committed to the partnership model," said a Keurig Dr Pepper spokeswoman. Keurig Green Mountain had its own partnership relationships prior to its deal with Dr Pepper Snapple.
As Keurig Dr Pepper has lost an Allied Brand, its has also added some.
Keurig Dr Pepper's acquisition of Big Red comes after Dr Pepper Snapple had a minority stake in the soda brand for a decade and a distribution partnership with it for more than 30 years.
Austin, Texas-based Big Red was founded 1937 and also owns Hydrive energy water and Xyience energy drink. Its following is strong, though regional.
Keurig Dr Pepper also signed agreements to add two coffee drinks to the Allied Brands network, Forto Coffee Energy Shots and Peet’s Ready-to-Drink Iced Expresso, a spokeswoman told CNBC.
It will distribute Forto throughout its network and Peet's primarily through its network of convenience stores.
Those additions highlight the opportunity Keurig Dr Pepper has been touting to combine Dr Pepper Snapple's retail distribution with the brands and restaurants that JAB owns. Keurig is a minority investor in Forto. JAB owns Peet's Coffee & Tea.
"Access to the JAB-owned brands, like Peet’s Coffee, will facilitate our expansion into the high-growth, ready-to-drink coffee segment," noted Gamgort in the same presentation. "Plugging [Forto] into the [Dr Pepper Snapple] small outlet distribution machine will accelerate its growth trajectory by reaching retail outlets it could not access on its own," he added.
Still, industry sources note that distribution is only half the puzzle. The other is ensuring demand.
Shares of Keurig Dr Pepper, which began trading Tuesday, were down 2.8 percent in morning trading.
Correction: An earlier version of this story misidentified the wine brand The Wonderful Co. owns. It is Landmark Wines.
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ffb9e7caae48579665e496d1fd99f2cd | https://www.cnbc.com/2018/07/12/teslamodel-3-workers-got-free-red-bull-walked-through-sewage-report.html | Tesla factory workers were reportedly offered free Red Bull, walked through raw sewage to meet Model 3 quotas | Tesla factory workers were reportedly offered free Red Bull, walked through raw sewage to meet Model 3 quotas
Tesla Chairman and CEO Elon Musk addresses discusses self-driving featurVisual China Group | Getty Images
To meet Model 3 quotas, Tesla factory workers were provided free Red Bull to stay awake and instructed to walk through raw sewage to avoid interrupting production, according to a new Bloomberg Businessweek report.
Reports of harsh conditions and intense pressure continue to emerge from the Fremont, California, factory, which CNBC previously reported has suffered several fires as the company raced to meet self-imposed production targets. The latest details are some of the most jarring and could raise questions of violations of factory workers' rights.
Unnamed employees told Businessweek they were asked to walk through raw sewage that had spilled on the factory floor in order to "keep the line going." The factory also provided free Red Bull energy drinks to battle exhaustion, fueling a zombie-like trance they called the "Tesla stare," Businessweek reports.
Tesla told the business outlet it wasn't aware of such instructions and that the plumbing issue was quickly resolved.
“Nothing is more important to us than the safety of our employees," a company spokesperson told CNBC. "This is not to say that there aren’t real issues that need to be dealt with at Tesla or that we’ve made no mistakes with any of the 40,000 people who work at our company. However, there should be absolutely no question that we care deeply about the well-being of our employees and that we try our absolute hardest to do the right thing and to fail less often."
Businessweek reports Tesla's factory troubles began long before Model 3 production.
In one supposed incident in late 2016, a factory worker had his leg amputated after being struck by a forklift outside the main building, according to Businessweek. The driver of the forklift had been doing doughnuts, and has since been fired, the company told Businessweek. The state agency Cal/OSHA fined Tesla $800 in connection with the incident and described it as an ankle fracture, according to the Businessweek article.
Read the full details of Tesla's production push at Bloomberg Businessweek.
VIDEO1:1901:19Tesla went public eight years ago today. Here's how the company has changedAutos
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53d0bab6de78fecccb61477180e34dcd | https://www.cnbc.com/2018/07/12/the-sp-500-should-pass-2800-after-tomorrows-earnings-investor.html | The S&P 500 should pass 2,800 after Friday's earnings: Investor | The S&P 500 should pass 2,800 after Friday's earnings: Investor
VIDEO5:2005:20Tariffs' effects yet to be seenClosing Bell
After financials report Friday, the S&P 500 is likely to pass the 2,800 mark, investor Steve Grasso told CNBC.
"Prior to tomorrow’s opening, when you get these companies that should perform pretty well, you should see the market overtake that 2,800 level," Grasso, director of institutional sales at Stuart Frankel, said Thursday on "Closing Bell."
On Thursday, the index gained 0.9 percent, closing at 2,798.29.
Some analysts have predicted the index could reach as high as 3,000 by 2019. But S&P has hovered around 2,600 to 2,700 for most of the year and has yet to regain its January highs past 2,800.
Several large banks will report quarterly earnings before the start of Friday's trading day, including Citigroup, J.P. Morgan Chase, Wells Fargo, First Republic Bank and PNC Financial Services Group. Grasso, who is also a CNBC contributor, estimates these banks make up about 25 percent of the XLF, the ETF of the financial sector, and said positive earnings will only push the market higher.
Meanwhile, investors have been on edge as trade war tensions continue to loom. In March, President Donald Trump first proposed tariffs to fix what he deemed unfair trading practices. Earlier in July, $34 billion worth of tariffs on Chinese goods kicked in. On Tuesday, Trump announced another round of tariffs, this time .
Saul Gravy | Getty Images
But, Peter Boockvar, chief investment officer at the Bleakley Advisory Group, said the market more often reacts to hard data than temporary uncertainty.
"The stock market is not going to react until the problem is right in front of their face," said Boockvar, who is also a CNBC contributor.
"Until the stock market sees it actually in corporate earnings and sees it in the hard economic data, I don't necessarily think they're going to react," he said.
Disclaimer
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502efdd01086016dee885eb442c9375b | https://www.cnbc.com/2018/07/12/this-is-what-the-uk-wants-after-brexit.html | The UK government wants a 'new arrangement' for its banks after Brexit | The UK government wants a 'new arrangement' for its banks after Brexit
Jason Alden | Bloomberg | Getty Images
The U.K. government has proposed to end one of the most-cheered privileges of the financial industry, according to a new document Thursday, as it tries to speed up negotiations to leave the European Union.
In a white paper, the U.K. government proposed new trade arrangements with the EU to come into force when it leaves the 28-member bloc. Under the proposal, the U.K. and the EU will retain the current agreements to trade goods but not services.
"The government’s vision is for an economic partnership that includes ... new economic and regulatory arrangements for financial services, preserving the mutual benefits of integrated markets and protecting financial stability while respecting the right of the U.K. and the EU to control access to their own markets — noting that these arrangements will not replicate the EU’s passporting regime," the paper states.
The EU's passporting regime allows financial services firms based in the U.K. to have clients in the EU. Ending this regime means that the City of London will need extra licenses to serve EU-based customers.
This could be particularly problematic for international banks, such as U.S. firms, who have relied mostly on their big London-based offices to serve European clients.
The chairman of the City of London Corporation Policy said that the proposal is a "real blow for the U.K.'s financial and related professional services sector."
“With looser trade ties to Europe, the financial and related professional services sector will be less able to create jobs, generate tax and support growth across the wider economy. It’s that simple," Catherine McGuinness said in a statement Thursday.
According to the government's paper, around £1.4 trillion ($1.98 trillion) of assets are managed in the U.K. on behalf of European clients.
Some firms have started making preparations in case the passporting rights are limited or lost, including moving employees to European capitals and hiring new staff in those locations. However, after Thursday's proposals some companies might step up their post-Brexit plans.
The U.K.'s proposal will be discussed next week with European negotiators in Brussels. Until both sides reach an agreement over Brexit, nothing is set in stone.
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f54e07b8d3486d0ecc776e0dc5dca6ed | https://www.cnbc.com/2018/07/12/trading-app-robinhood-adds-two-new-cryptocurrencies-despite-bear-marke.html | Trading app Robinhood adds two new cryptocurrencies despite bear market | Trading app Robinhood adds two new cryptocurrencies despite bear market
Source: Robinhood
Despite a sluggish cryptocurrency market, stock trading app Robinhood is adding two new digital currencies to its platform.
The company will add Litecoin and Bitcoin Cash to its no-fee app, which already lets users trade bitcoin and ethereum.
“Since we launched Robinhood Crypto in February, our customers have voiced interest in buying and selling other cryptocurrencies beyond Bitcoin and Ethereum,” Robinhood said in a blog post Thursday.
The company also said it has topped 5 million users across the entire Robinhood platform, helped by “significant momentum generated over the last several months with the introduction of Options and Crypto.”
The platform added cryptocurrency trading in February, two months after bitcoin had skyrocketed to nearly $20,000. It has lost 65 percent of its value since the high, and has fallen more than 50 percent this year to around $6,180 as of Thursday morning.
Litecoin, one of the coins being added to Robinhood Crypto, is down more than 64 percent since January and was trading near $77 Thursday, according to Coindesk. The other digital currency bitcoin cash has dropped more than 72 percent in the same time frame, and was trading near $682 Thursday. The market capitalization of the entire digital currency market has fallen 60 percent this year, according to data from CoinMarketCap.com.
Other popular trading platforms, including Coinbase have seen pressure from investors looking to trade more cryptocurrencies. Rumors about Coinbase adding XRP to the platform the price of that cryptocurrency early this year.
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5da8e6a68653c21b6bb281f884243237 | https://www.cnbc.com/2018/07/13/coinbase-considers-five-new-coins-for-its-platform.html?__source=facebook%7Ccrypto+ | Coinbase considers adding five new coins to its platform | Coinbase considers adding five new coins to its platform
VIDEO5:1105:11Trader explains why contrary to popular belief, bitcoin isn't fit for crimeFast Money
Coinbase, the largest cryptocurrency exchange in the U.S., is considering adding five new tokens to its platform.
The five digital coins include cardano, basic attention token, stellar lumens, Zcash and 0x.
"It wouldn't surprise me to see these things up 20, 30, 40 percent over the weekend," digital trader Brian Kelly said Friday on "Fast Money."
Kelly, founder and CEO of BKCM LLC, an investment firm focused on digital currencies, said he's "long almost every single one of them" but would probably choose Zcash and 0x first.
The announcement came Friday in a blog post that read, "these assets will require additional exploratory work and we cannot guarantee they will be listed for trading." The San Francisco-based company went on to say that some assets may have limited functions and that it has not yet determined if the coins are securities. In addition, some of them may only be available in select countries.
All five assets moved higher after the announcement.
Previously, with the entire cryptocurrency industry under increased regulatory scrutiny, Coinbase only traded four coins despite user demand for more.
Kelly breaks it down for investors:
Getty Images
Brian Kelly said it is similar to ethereum.
"They have working network," he said. "They have a live road map. That's important. That's what the [Securities and Exchange Commission] said was important, so it's not a security."
This coin is unique in that it offers an ad-free experience, Kelly said. "You can use Basic Attention Token to pay for content on the web."
Pronounced "zero x," this is a decentralized exchange protocol that Kelly said is "up and running."
Kelly said this token is similar to ripple.
This is a privacy token, "so you can send stuff back and forth without people knowing," he said.
Kelly said the digital asset platform Gemini has already said it's going to have Zcash on its platform.
"So this one is probably one of the most likely" to be approved by Coinbase, Kelly said.
Disclaimer
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04ca1eca9f737abcec96ad2a1b0bea71 | https://www.cnbc.com/2018/07/13/mccain-democrats-push-trump-to-cancel-putin-summit-after-indictments.html | Democrats — and John McCain — press Trump to cancel Putin summit after Mueller indicts Russians | Democrats — and John McCain — press Trump to cancel Putin summit after Mueller indicts Russians
VIDEO7:3607:36Trump: NATO allies thanked me for meeting with PutinSquawk Box
Lawmakers are calling on President Donald Trump to cancel a meeting with Russian leader Vladimir Putin after special counsel Robert Mueller charged against 12 Russians for interfering in the 2016 U.S. Presidential election Friday.
Democratic leadership in the Senate and House of Representatives, alongside a growing list of other Democratic lawmakers, called on the president to abandon the meeting, which is scheduled to take place Monday in Helsinki, Finland.
In their statements, many Democrats said they did not trust Trump, who has often expressed a desire to improve U.S.-Russia relations, to confront Putin about Russia's role in the 2016 election.
They were joined by at least one high-profile member of the opposing party: Republican Sen. John McCain of Arizona, a frequent Trump critic and a Russia hawk, called on the president to cancel the summit if he is "not prepared to hold Putin accountable."
But the Trump administration appears unlikely to do so. White House press secretary Sarah Huckabee Sanders told NBC News on Friday afternoon that the summit is "still on."
Read more: Trump under pressure to confront Putin over election meddling
The White House downplayed the significance of the indictment, noting there were no allegations against members of Trump's campaign team. The president's lawyer, former New York City Mayor Rudy Giuliani, said the charges were "good news for all Americans" and called on the special counsel to end his investigation and declare the president innocent.
Democrats weren't so eager to move on, however. Senate Minority Leader Chuck Schumer, D-N.Y., was among the first to call for Trump to cancel the summit, warning that, “Glad-handing with Vladimir Putin on the heels of these indictments would be an insult to our democracy.”
Other Democrats soon joined Schumer. House Minority Leader Nancy Pelosi said that Trump's refusal to condemn Putin "makes it clear that meeting with Putin would be both pointless and dangerous."
Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., admonished Trump not to meet with Putin, saying the Russian leader “will undoubtedly take full advantage of an ill-prepared President.
He added: “If the Administration is unwilling to make the facts laid out in today’s indictment a top priority for that discussion, then that meeting shouldn’t happen.”
Sen. Dianne Feinstein, D-Calif., said she supported Schumer's call to cancel the summit. Sen. Cory Booker, D-N.J., joined the fray, too.
"Trump should cancel the meeting or make it an open meeting, confronting Putin on his aggression & taking measures to hold them accountable," Booker said. The New Jersey Democrat, a member of the Senate's foreign relations and judiciary committees, is considered a potential contender for his party's presidential nomination in 2020.
The admonitions to cancel the meeting came almost exclusively from Democrats, with the notable exception of McCain, who has been absent from Capitol hill as he continues to fight brain cancer.
"President Trump must be willing to confront #Putin from a position of strength & demonstrate there will be a price to pay for his ongoing aggression. If President Trump is not prepared to hold Putin accountable, the #HelsinkiSummit should not move forward," McCain wrote in a statement posted to Twitter.
McCain tweet
Some Democrats echoed McCain's call for Trump to challenge Putin over election meddling, particularly now that he is armed with information from the latest Mueller indictment.
House Judiciary Committee ranking member Jerrold Nadler, D-N.Y., told reporters following the announcement of the new charges that he thought Trump should keep the meeting and demand that Russia extradite the 12 Russians named in the indictment.
Sen. Bob Menendez, D-N.J., the ranking Democrat on the Foreign Relations Committee, made a similar claim. The lawmaker said in a statement Friday that "if the president is going to persist in attending a summit with Vladimir Putin, he must" impose new sanctions on the Russians named in the indictment, demand that Putin extradite them to the United States, and return Crimea to Ukraine.
VIDEO4:0404:04Mueller's former chief of staff responds to indictment of 12 Russian officersPower Lunch
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62dfd48c3342183baca86afa4c5d4f63 | https://www.cnbc.com/2018/07/13/papa-johns-to-remove-founders-image-from-marketing-materials.html | Papa John's to remove founder's image from marketing materials | Papa John's to remove founder's image from marketing materials
A Papa John's pizza box is seen on July 11, 2018 in Miami, Florida. Joe Raedle | Getty Images
Papa John's is taking another step to distance itself from its founder.
The pizza chain is removing John Schnatter's image from its marketing after racially charged comments he made became public Wednesday, a company spokesman confirmed to CNBC. The news was first reported by The Associated Press.
The decision was made by top executives and the exact timing of his removal from these materials is still being decided, the AP said, citing a source familiar with the matter. The source was not aware of any plans to change the pizza chain's name.
VIDEO1:0401:04Cramer: Pizza execs say Papa John’s is ‘falling apart’Squawk on the Street
Schnatter's image is very closely tied to the company and he is pictured on its pizza boxes.
Schnatter, who stepped down from the post of CEO seven months ago, resigned as chairman earlier this week after admitting and apologizing for using the N-word during a May conference call. Schnatter, who owns a 24 percent stake in Papa John's, remains on the company's board.
The incident came to light after Forbes magazine detailed it in an article Wednesday. Schnatter later confirmed he was on a call with marketing agency Laundry Service when he tried to downplay comments he had made about the National Football League last fall. He said, “Colonel Sanders called blacks n-----s" and never faced any public backlash at KFC.
Papa John's shares were up more than 1 percent Friday.
VIDEO1:3901:39Papa John's founder resigns after using racial slurSquawk on the Street
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98260ae6f19852a180fdd545f1270210 | https://www.cnbc.com/2018/07/13/unlimited-data-plan-caps-verizon-att-tmobile-sprint.html | Your phone's unlimited data plan isn't really unlimited — this is what you really get | Your phone's unlimited data plan isn't really unlimited — this is what you really get
Roberto Westbrook/Getty Images
Verizon, AT&T, T-Mobile and Sprint all offer "unlimited" data plans that suggest you can use as much high-speed data as you want each month.
But the truth is more complicated.
In reality, if you use too much data in a month — even if you pay for one of these plans — your carrier might drastically slow your connection down. If you go over your plan's cap, you won't have to pay overages, but your data might be so slow that you won't be able to do very much online other than load mobile websites and check e-mail.
So, while your plan might be technically unlimited in the sense you can use as much data as you want, you're still effectively locked into a data cap because of the slower speeds your carrier might impose after you go over.
Recently, the major carriers have added tiers to their unlimited data plans with larger caps of high-speed data. It's confusing.
I took a look through the so-called unlimited plans offered by the big four U.S. carriers to find out what you actually get when you pay for "unlimited data."
They all have some perks that attempt to make the plans more enticing, like free TV, international data or a subscription to Netflix, depending on the carrier. But I want to show you, specifically, what the term "unlimited data" actually gets you in each case. If you're interested in the other perks, click the link to each plan below.
Here's what I learned.
Verizon has three unlimited plans priced at $75, $85 and $95 per month, respectively: "Go Unlimited," "Beyond Unlimited" and "Above Unlimited." The pricing for each decreases as you add more lines to the account.
What you need to know:
Verizon's Beyond Unlimited plan is capped at 22GB of high-speed 4G LTE data per month, while the Above Unlimited is curbed at 75GB. If you hit these ceilings, Verizon reserves the right to slow your data speeds.
The entry-level Go Unlimited is unique. Unlike the more expensive plans, there's no guarantee of a certain about of high speed unlimited data you can use without seeing throttling. Verizon explained to me that "data may be temporarily slower than other traffic during times of congestion" at any point during your usage.
Also, while all three plans offer a hotspot feature that lets you use your phone to provide internet to a laptop on-the-go, data for that sort of usage is also limited depending on the plan.
Streaming video is limited to 480p (that's DVD quality) on Go Unlimited and 720p on Above Unlimited and Beyond Unlimited. Even if your smartphone has a 1080p or sharper display, the video won't appear as good as it technically could.
I like that Verizon spells out all of this right on the page where you pick your plans, instead of burying it elsewhere.
AT&T offers two unlimited plans, and, like other carriers, the pricing changes depending on how many lines per account. For a single line, AT&T offers "Unlimited & More" and "Unlimited & More Premium," which cost $70 and $80 per month, respectively.
What you need to know:
AT&T caps both unlimited plans at 22GB of data per billing cycle, after which it may slow your speeds down. The difference between the two plans comes down to video quality and hotspot data. Like other carriers, AT&T caps video at 720p by default, though the the "More Premium" plan offers 1080p streaming and 15GB for mobile hotspots. Your hotspot data gets slowed down to a measly 128kbps after you hit that cap, which is barely enough to check your email or send an iMessage.
Sprint has two unlimited plans: Unlimited Basic, which starts at $60 per month for one line, and Unlimited Premium, which starts at $70 per month for one line.
What you need to know:
Both of Sprint's "unlimited" plans are very limited. Unlimited Basic only supports 480p video, streaming music at 500kbps, playing video games at 2Mbps and 500MB of LTE hotspot data. Just to put those speeds in perspective, a modern 4G LTE connection should get you about 50-100Mbps, so you're getting 2 percent of the speed you pay for when you're playing video games, and less for streaming music.
Unlimited Premium ups the ante a little, but it's still extremely slow. You can stream in 1080p but music streaming speeds are limited at 1.5Mbps, gaming streaming is limited to 8Mbps. You also get 15GB of LTE hotspot.
Sprint will throttle your speeds if you exceed more than 50GB of data in a month but, as you can see, your speeds are throttled from the get-go for most things anyway.
T-Mobile One starts at $70 per month, though the price drops as you add more lines. T-Mobile advertises "unlimited talk, text and data." You can upgrade to T-Mobile One Plus for $10 per more a month, which includes a few more features.
What you need to know:
T-Mobile One includes 50GB of high-speed 4G LTE data. Once you go above that, as with other carriers, T-Mobile can drop this to slower speeds. Also, while T-Mobile includes hotspot tethering, it's capped at 3G speeds which means you're going to be sitting around for a while if you need to download a big file. Video streaming is capped at 480p, too.
You can pay T-Mobile more if you want to avoid some of these boundaries. T-Mobile One Plus adds support for streaming in HD, offers 10GB of 4G LTE hotspot data per month (3G after that), faster data speeds if you travel abroad and free Wi-Fi on flights equipped with Gogo.
The point here is that instead of anything being limited, there are actually lots and lots of limits. It's unfair to call any of these plans unlimited in any real fashion.
You're technically getting unlimited text messages and phone calls, sure. And, yes, you might get "unlimited data," but it's not the high-speed 4G LTE data you're used to. Trust me, if you go over that cap, you're not going to be very happy with your phone for the rest of the month and you'll be hunting down Wi-Fi hotspots to get your fix.
The good news is that most people don't use 22GB of data per month, so it might feel like you're getting as much data as you can possibly use. But as services like Hulu, Netflix and Spotify become more and more popular, and as you use them more, that data will be consumed quicker.
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893e18b5f9721ee0ae19ddf5897d8bf7 | https://www.cnbc.com/2018/07/15/elon-musk-downplays-gop-donations-touts-environment-and-human-rights.html | Elon Musk touts environmental, human rights bonafides in an effort to downplay political donations | Elon Musk touts environmental, human rights bonafides in an effort to downplay political donations
Tesla and SpaceX CEO Elon Musk donated nearly $40K to Republican PAC, according to federal election filings.Mark Braker | Getty Images
Elon Musk defended himself in the face of widening criticism over money he sent to a Republican political-action committee, with the billionaire touting his support for environmental and humanitarian causes that he insisted outstripped his political contributions.
In news first reported by The Hill on Saturday, federal election filings showed that Tesla CEO and SpaceX founder sent nearly $40,000 to Protect the House, a GOP PAC designed to help Republicans maintain their tenuous congressional hold, as recent polling suggests Democrats could retake one or both chambers in the November midterm elections.
According to Open Secrets, Musk has distributed his wealth fairly evenly among politicians and PACs of both major parties, which he defended in principle in a series of posts on Twitter.
Musk, however, rejected suggestions of being a major GOP donor as "categorically false." A vocal supporter of environmental causes, Musk added that he was a political moderate who is primarily motivated by humanitarian issues — and that his political donations were a mere fraction of what he donates to supporting the environment.
Climate change, a cause Musk has long embraced, "affects every living creature on earth," Musk posted on Twitter.
Musk Tweet
Musk, who said he donated to Democrats and Republicans to "maintain an open dialogue," then retweeted support from the Sierra Club. A representative of the organization, which thanked him for his financial support, said Musk had contributed $6 million toward climate advocacy.
Sierra Club tweet
After President Donald Trump renounced U.S. support for the Paris Accord on global warming, Musk resigned in protest from a presidential advisory committee. Recently, the billionaire won praise by pledging to fund efforts to fix the ongoing water contamination efforts in Flint, Michigan.
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04a8621554025a9817feb9ba5f8a9dcc | https://www.cnbc.com/2018/07/15/trump-us-uk-could-strike-a-tremendous-deal-on-trade-post--brexit.html | Trump suggests US and UK could strike a 'tremendous deal' on trade after Brexit: Daily Mail | Trump suggests US and UK could strike a 'tremendous deal' on trade after Brexit: Daily Mail
Prime Minister Theresa May and U.S. President Donald Trump attend a joint press conference following their meeting at Chequers on July 13, 2018 in Aylesbury, England.Jack Taylor | Getty Images
President Donald Trump hinted that the world’s largest economy could strike “a tremendously big deal” with United Kingdom, if the latter country successfully negotiates its exit from the European Union.
In an interview with British broadcast journalist Piers Morgan, Trump — fresh from his first official visit to the U.K. — dangled the prospect of striking a generous free trade agreement with embattled Prime Minister Theresa May. With Brexit negotiations having hit rough shoals, May is under pressure to deliver on the 2016 vote to extricate the U.K. from the 28-member economic bloc.
“We would make a tremendously big deal” with Britain, Trump said in the interview, published by the Daily Mail, apparently trying to smooth over a firestorm created ahead of his visit.
"Oh I think we’re going to have a great trade deal, I’ve really no doubt about it," Trump said in the interview. "We’re going to get it. I said [to Theresa May], “Make sure you have a carve out, you have to have a carve out” - where no matter what happens they have the right to make a deal with the United States."
Last week British tabloid The Sun published an explosive interview in which Trump criticized May’s handling of Brexit — remarks that the president later disavowed.
In his interview with Morgan, Trump said the United States and its longtime ally would “argue, we’re going to fight, and we’re going to end up making a deal.”
He added, "We would make a great deal with the United Kingdom, because they have product that we like. I mean, they have a lot of great product. They make phenomenal things.”
According to trade group Export Britain, the United States is Britain’s largest single trading market. In 2017 the United States ran a modest trade surplus with the country, Census Data figures show, a stark contrast to the massive trade deficit the world’s largest economy runs with the European Union, which has drawn Trump’s ire as his administration pursues tariffs on major U.S. trading partners. Last year the EU ran a trade surplus with the United States of nearly $140 billion, according to European Commission data.
Trump lavished praise on British exports in the interview, describing them as “fantastic” as he waxed optimistic that the two countries could find common ground on trade.
The president’s remarks were published just as May told the BBC in an interview that Trump counseled her to “sue” the EU rather than negotiate a Brexit deal with the trade bloc. In his interview, Trump confirmed that he “recommended her something” but declined to say what he told May specifically.
“I gave her an option. I’d rather not tell you what that option is, but I think she might. I think it would’ve been great, but it’s not too late for her to do that, necessarily,” Trump said in the interview.
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ad99acfa6560d2646d753f593aebd247 | https://www.cnbc.com/2018/07/16/amazon-prime-day-event-is-likely-to-drive-companys-sales-and-share-pr.html | Amazon's Prime Day is likely to drive company’s sales and share price higher | Amazon's Prime Day is likely to drive company’s sales and share price higher
An employee stacks items to be shipped at the Amazon.com fulfillment center in Phoenix, Arizona.David Paul Morris | Bloomberg | Getty Images
Amazon’s annual shopping holiday is a significant positive driver for the company’s e-commerce leadership and even its stock price.
Cowen told its clients that the company’s Prime Day is a key benefit for its Prime subscriber base. Only Amazon Prime members can take advantage of Prime Day discounts, which starts Monday at 3 p.m. EDT this year.
“Amazon Prime Day returns for the 4th time … and is likely to be the biggest one ever,” analyst John Blackledge said in a note to clients Monday. "Beyond adding further revenue/GMV, Prime Day is a key driver of Prime subs, which we view as the core driver of LT eCommerce growth.”
Amazon raised the price of its annual Prime plan to $119 from $99 in May.
VIDEO2:5502:55How to decide if Amazon Prime is worth the priceTech
Blackledge reiterated his outperform rating and raised his price target to $2,100 from $2,000 for Amazon shares, representing 16 percent upside to Friday’s close.
The analyst said the Prime Day promotions will increase the company's Echo device sales and Prime subscriber base. He noted Prime households buy on average about 3.5 times per month versus two times for the regular Amazon consumer, according to Cowen's survey.
Another Wall Street analyst explained the ecosystem surrounding Prime is what makes Amazon special.
“Every year, Amazon’s Kindle devices are heavily promoted, and this year, we expect more of the same, augmented by similar promotions on Alexa devices,” Moody’s analyst Charles O’Shea said in a note to clients Monday. ”This is where we believe the true value of Prime lies – the kind of content it offers members. Anyone can offer cutthroat shipping promotions if they have the stomach (and shareholders!) willing to absorb the costs, but excluding the likes of Apple, no one in retail can match the content ecosystem of Prime.”
Not only does Prime Day help the company’s sales, it is also benefits Amazon’s stock price.
Using Kensho, a quantitative tool used by hedge funds, CNBC found Amazon rose 1.9 percent on average during Prime Day week in the last three instances. The Amazon return approximately doubled the S&P 500’s performance in the same time periods.
Amazon shares rose 0.6 percent to a record on Monday.
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89c6d69aaeb8c4a9b2a9d07ed9ef86b5 | https://www.cnbc.com/2018/07/16/amazon-prime-day-threatened-by-strikes-at-european-warehouses.html | Amazon Prime Day threatened by strikes at European warehouses over working conditions | Amazon Prime Day threatened by strikes at European warehouses over working conditions
Amazon workers in Spain and Germany went on strike Monday to protest working conditions at the e-commerce giant's warehouses, just as its massive Prime Day sales kick off.
A group called Amazon En Lucha organized the walk out at the company's fulfillment center just outside the Spanish capital of Madrid. The strike will last until July 18 and the employees also called for Amazon workers around Europe to go on strike.
Those on strike stood outside the warehouse, which was Amazon's first in Spain, wore masks of Chief Executive Jeff Bezos. It's not the first time employees at the fulfillment center have gone on strike this year. In March, hundreds of workers walked out in a bid to negotiate over working contracts.
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Their specific grievances include an increase in working hours, the elimination of bonuses and lack of protection against illnesses, according to a statement released on Sunday by Spain's communist party.
It's unclear how many people actually went on strike. Amazon En Lucha tweeted a picture showing the number of empty parking spots at the warehouse. They also called for a Europe-wide walkout, but again it's not clear how many Amazon workers across Europe were involved. Fisacat, a workers union in Italy, threw its support behind the Spanish workers in a tweet on Monday.
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Amazon warehouse workers elsewhere in Europe will stage their own demonstrations. In Germany, thousands of employees at six facilities will walk off the job on Tuesday for a one-day strike. In Poland, workers will stage a work to rule, in which they do no more than the bare minimum required to stay employed.
An Amazon spokesperson told CNBC that it is a "fair and responsible" employer.
"Amazon’s total compensation in Madrid is in the high range of the logistics sector and consists of base pay and an extensive benefits package: private medical insurance, a company pension plan, life assurance, employee discount and a Career Choice program that provides employees funding for adult education, offering to pre-pay 95 percent of tuition and associated fees for nationally recognized courses, over four years," the spokesperson said.
"Amazon has already invested over 1.1 billion euros ($1.29 billion) in Spain and created over 2,000 permanent jobs since 2011 and we continue to be committed to Spain."
Prime Day is the e-commerce giant's annual event where it discounts many products. But Amazon has come under heavy fire from workers across Europe. In November, workers in both Germany and Italy went on strike over pay and working conditions.
The U.S. company's warehouse conditions have come under scrutiny in the past few years. An investigation by the U.K.'s Mirror newspaper outlined how workers had timed toilet breaks and strict targets to meet with many falling asleep on the warehouse floor. A British union found out via a Freedom of Information request, that ambulances have been called out 600 times to Amazon's U.K. warehouses in the past three years. At the time, Amazon said that it was “simply not correct to suggest that we have unsafe working conditions based on this data or on unsubstantiated anecdotes."
It's unlikely that the strikes in Spain will cause much disruption to Amazon Prime Day which continues to be a key event for the company. Last year, it said that Prime Day was its "biggest day ever" with sales growing by more than 60 percent from the same period in 2016. The event is key for Amazon to lure more people onto its $119 a year Prime subscription service.
- Additional reporting provided by Reuters.
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64ba2ffe9e34026c40fa2df6a9ae8486 | https://www.cnbc.com/2018/07/16/asia-markets-trade-concerns-ease-earnings-in-focus-china-data-ahead.html | Asian stocks slip after China economic growth eases | Asian stocks slip after China economic growth eases
Asian stocks closed lower on Monday as investors digested the release of a barrage of China economic data, shrugging off the gains seen stateside in the previous session.
The Shanghai composite declined 0.61 percent to close at 2,813.92 as investors digested the release of a barrage of economic data, including China's second-quarter GDP growth of 6.7 percent which met expectations. That was a tad below the 6.8 percent growth seen in the previous quarter. The smaller Shenzhen composite was little changed, ending the session lower by 0.1 percent.
The easing in growth came on the back of "softer global trade and the tightening of financial policy" since early this year, Oxford Economics' Head of Asia Economics Louis Kuijs said in a note. "We expect growth in H2 to be challenged ... (but) China's most recent export data suggests that overall global demand momentum remains solid for now."
Meanwhile, Hong Kong's Hang Seng Index shed 0.17 percent by 3:02 p.m. HK/SIN, with property and materials stocks slumping before the market close, although some of those losses were offset by gains in the utilities sector.
South Korean stocks closed lower, with the Kospi slipping 0.39 percent to 2,301.99. Bank stocks declined, weighing on the broader index, but automakers climbed, with Hyundai Motor closing up 2.86 percent. In Australia, the edged down by 0.43 percent to 6,241.50, with health care among the worst-performing sectors.
Meanwhile, markets in Japan were closed for a holiday on Monday.
MSCI's index of shares in Asia Pacific excluding Japan slipped 0.41 percent in Asia afternoon trade.
The moves lower came despite gains on Wall Street in the previous session. The S&P 500 added 0.11 percent to end at 2,801.31, closing the session above the 2,800 level for the first time since Feb. 1.
Despite the broader increase stateside on Friday, bank stocks had dipped as markets digested the release of second-quarter earnings. Just over 5 percent of S&P 500 companies have reported second-quarter results so far. Analysts polled by FactSet expect second-quarter earnings to have grown by 20 percent.
Still, the overall gains came amid relief among investors over the lack of fresh, negative trade war headlines, according to analysts, with major U.S. indexes posting strong gains last week. A similar picture was seen in Asia last week, with markets finishing the week higher.
That had come after stocks initially slid following the Trump administration releasing a list of $200 billion in Chinese goods that could be subject to new tariffs, firing the latest shot in the trade dispute between the U.S. and China. The announced duties will only take effect following a review process and come on the heels of U.S. tariffs on $34 billion in Chinese products taking effect earlier in the month.
Despite Monday's slight declines and lingering anxiety on the trade front, some expect regional markets to head higher in the next quarter.
"If you look at particularly the Hong Kong, China market, most of the indicators that I look at are at oversold extreme. They're at a level where I would look for the Hong Kong market ... to try and find a base," Mark Jolley, global strategist at CCB International Securities, told CNBC's "Squawk Box."
He added that unless the trade situation deteriorates significantly, which is seen as unlikely in the short term, Asian markets could see a relief rally in the next one to two months.
Others were more wary in the interim: "In the short term, we prefer to remain cautious on both the A-share and H-share markets, at least until we receive more clarity on a near term resolution to negative drivers," Amundi Asset Management said in a recent research note, adding that the critical risk of a potential trade war still remained.
In currencies, the dollar index, which tracks the U.S. dollar against a basket of currencies, softened to trade at 94.644 at 2:46 p.m. HK/SIN. Against the yen, the dollar traded at 112.36.
Apart from that, investors awaited Federal Reserve Chairman Jerome Powell's semi-annual congressional testimonies on Tuesday and Wednesday during U.S. hours.
In individual movers, telecommunications equipment maker ZTE got a boost after the U.S. removed a ban on the company from purchasing technology from U.S. corporations. Shares of ZTE listed in Hong Kong were up 16.3 percent by 3:08 p.m. HK/SIN while Shenzhen shares closed higher by the daily limit of 10 percent.
Meanwhile, shares of Xiaomi fell 2.56 percent by 3:08 p.m. HK/SIN after media reports that Chinese stock exchanges said the connect scheme linking Hong Kong and the mainland would not extend to firms with weighted voting rights structure. That would mean that shares of Xiaomi will not be accessible to investors on the mainland under the connect program.
— CNBC's Fred Imbert contributed to this report.
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8d908ec695ca2b54d098edcc932cc7ff | https://www.cnbc.com/2018/07/16/billionaire-investor-peter-thiel-bets-on-crypto-start-up-blockone.html | Billionaire tech investor Peter Thiel bets on crypto start-up Block.one | Billionaire tech investor Peter Thiel bets on crypto start-up Block.one
Partner at Founders Fund Peter Thiel participates in a panel discussion at the New York Times 2015 DealBook Conference at the Whitney Museum of American Art on November 3, 2015 in New York City.Neilson Barnard | Getty Images | The New York Times
Venture capitalist Peter Thiel is placing a new bet in the crypto space. The early Facebook investor was a part of Cayman Islands start-up Block.one’s most recent funding round announced Monday.
The company recently raised a record $4 billion to fund its blockchain platform EOSIO through a process known as an initial coin offering, or ICO. The fundraising more than doubled the next biggest offering of that type, and eclipsed the world's biggest initial public offerings on stock exchanges this year before its flagship product even went live.
“As Block.one prepares to announce its future plans, we’re excited to welcome key strategic investors aligned with our values of creating a more secure and connected world,” Block.one CEO Brendan Blumer said in a press release. The company did not give a dollar amount in the announcement.
Well-known Chinese start-up Bitmain, which dominates the bitcoin "mining" industry, also participated in the funding round. According to a recent Bernstein analysis, the company likely made $3 billion to $4 billion in operating profit in 2017, as much as chipmaker Nvidia did in the same year.
Thiel co-founded PayPal in 1998, was one of the first outside investors in Facebook. Founders Fund, the venture-capital firm he co-founded, began amassing hundreds of millions of dollars in cryptocurrency including bitcoin in 2017, the Wall Street Journal reported in January, citing people familiar with the matter. In March, Thiel said he was "long bitcoin” and highlighted its possibility of becoming a gold-like safe-haven investment. The billionaire backed the idea of bitcoin becoming a store of value instead of a go-to currency for daily transactions.
Bitcoin prices have struggled since. The cryptocurrency has fallen by more than 50 percent this year, after climbing to almost $20,000 in December.
Block.one, was featured in a March episode of HBO's "Last Week Tonight," where host John Oliver warned viewers about the "speculative mania" and risks of investing in cryptocurrency.
"It can be incredibly hard to tell which companies are for real," Oliver said during the episode, which has 5.98 million views on YouTube. "If you want a good example of this, look at Block.one, which has raised $1.5 billion."
Oliver listed a number of concerns: An apparent lack of seriousness by advisor and noted early bitcoin investor Brock Pierce, the exponential pace of fundraising relative to established tech giants such as Facebook, and a Wall Street Journal report calling Block.one "a software startup that doesn't plan to sell any software."
The cryptocurrency eos is now the fifth biggest by market capitalization, worth roughly total $7.2 billion, according to data from CoinMarketCap.com. It has fared better than most cryptocurrencies this year, down only 8 percent year to date in what has been a volatile bear market. Eos was up about 10 percent as of Thursday evening, according to CoinMarketCap.com.
The system, according to its founders, will support more efficient operations for "decentralized applications" than existing platforms such as ethereum. If EOSIO is successful, advocates say it could bring on much greater adoption of cryptocurrency-related technology.
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f1eb9db0781e0562c6d84fdc1dd9afde | https://www.cnbc.com/2018/07/16/bitcoin-jumps-after-report-says-blackrock-exploring-cryptocurrencies.html | Bitcoin extends gains as BlackRock looks into crypto and blockchain | Bitcoin extends gains as BlackRock looks into crypto and blockchain
A girl poses for a photograph on a stone sphere monument that unidentified persons have painted with the white Bitcoin cryptocurrency symbol in Oktyabrskaya Square, Yekaterinburg, Russia.Donat Sorokin | TASS | Getty Images
Bitcoin continued to edge higher on Tuesday, extending gains made on the previous day on news that asset-management giant BlackRock has set up a working group to look into cryptocurrencies and blockchain, the technology that underpins them.
The world’s most valuable virtual currency by market value was trading higher by more than 5 percent compared to where prices were on Monday, at around $6,720.84 as of 10:32 a.m. HK/SIN, according to industry website CoinDesk, which tracks prices from several exchanges.
The prices of ethereum and ripple, the second- and third-largest digital assets by market capitalization respectively, also tracked slightly higher. Ethereum was up by more than 6 percent, while ripple was around 6 percent higher compared to levels seen one day ago, as of 10:35 a.m. HK/SIN.
London’s Financial News first reported the story. BlackRock CEO Larry Fink later confirmed the report in an interview with Reuters. “We are a big student of blockchain,” Fink said. He added, however, he does not see "huge demand for cryptocurrencies."
In an earlier interview with Bloomberg, Fink said: "I don’t believe any client has sought out crypto exposure."
Fink has previously railed against bitcoin, calling it an “index of money laundering.”
VIDEO4:2904:29Five bullish experts on bitcoinInvestor's Edge
The working group is not a new development and has, in fact, existed since 2015, a source familiar with the matter told CNBC.
The news follows a report by Fortune magazine that hedge-fund billionaire Steve Cohen’s venture arm Cohen Private Ventures invested in Autonomous Partners, a cryptocurrency-focused investment fund.
Many industry experts believe that increased involvement from institutional investors in the cryptocurrency space will boost confidence in an otherwise dubious market.
“It definitely is causing some excitement,” Mati Greenspan, senior market analyst at eToro, said of the report on Monday. “The idea of big financial firms moving into crypto certainly isn’t new, and this is a trend we’ve been noticing gaining strength since November.”
Last year, two trading giants, CME Group and the CBOE, launched bitcoin futures products, lifting hopes of institutional involvement in cryptocurrencies.
Virtual currencies have been shrouded in doubt due to excessive volatility in the market resulting in wild price swings. Bitcoin soared close to $20,000 late last year but has declined since, with transaction volumes falling significantly.
Financial regulators around the world are concerned about the speculative nature of cryptocurrencies and their possible use for illicit activities. China and South Korea have both banned a practice known as an initial coin offering, for instance, which is a means of start-ups selling new digital tokens to propel their business.
— CNBC's Cheang Ming contributed to this report.
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7deeed983cd8b9a8f7c81032f7242adf | https://www.cnbc.com/2018/07/16/crypto-space-is-growing-with-institutional-money-says-coinbase-vp.html | More institutional money in the crypto space, says Coinbase vice president | More institutional money in the crypto space, says Coinbase vice president
VIDEO7:2407:24Coinbase looks to add five new coinsFast Money
Institutional investments in cryptocurrency are helping to grow the industry, Coinbase Vice President and General Manager Adam White told CNBC.
"What’s so unique about cryptocurrencies, and in many ways this asset class, [is that it] was driven by retail investors — not institutions," White said on "Fast Money" Monday.
So it was surprising that his firm, a San Francisco-based digital currency exchange, has had "unprecedented" interest from institutional investors throughout 2017, he said.
The "institutional conversations have become more and more profound," White said. In response, his firm has opened a New York office and launched new products and services.
Last Friday, Coinbase, which is also the largest cryptocurrency exchange in the U.S., announced it was considering adding five coins to its platform, including cardano, basic attention token, stellar lumens, Zcash and 0x. All five assets moved higher after the announcement.
"The idea of adding new assets is very simply: our customers want it," White said.
But so far, none of the coins have been approved, and it's not yet been determined if they are securities. The company said in a blog post on Friday that some of the assets may have limited functions, and may only be available in some countries.
The firm has previously been cautious about the addition of new tokens despite user demand, as the cryptocurrency universe endured increased regulatory scrutiny. Up until now, Coinbase has only listed four coins on its platform.
"We have a long-term vision for the space," White said. "And we are focused on building the exchange, the wallet, the custodian, that allows capital to move into the space."
People pass by a Bitcoin exchange shop.Omar Marques | SOPA Images | LightRocket | Getty Images
Not everyone is as bullish on digital currency though. Investor and author Kevin O'Leary is bearish on cryptocurrency — especially bitcoin, which was priced around $6,655 Monday at 5:30 p.m. ET.
"But until you know with certainty if you’re an asset allocator and you’re running a sovereign fund or you’re doing a pension plan for some state. You’re not going to put a dime into this stuff," O'Leary said on "Fast Money" Monday.
In order for cryptocurrency to be a lucrative investment, O'Leary said, investors need to know "it’s transparent; it’s compliant; and the regulators are on board." "And then you’ll see real money. Right now it’s fringe."
But White pointed out that those things don't happen overnight.
"Those are the exact three things Coinbase is working on," he said. "What we’re seeing though, with institutions, is that they want absolutely the right regulatory structure around it."
"People are valuing these assets very differently," White said. "Whether they’re crypto hedge funds or the retail investor. The core metrics that people look at though, are: What are the daily transactions? How much volume’s moving through it? How many people are building on top of it?"
"The end of the day these are open protocols that facilitate the kind of value, creation and movement," he said.
Disclaimer
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c422942a2868fe5612441bf4cb50df99 | https://www.cnbc.com/2018/07/16/for-many-millennials-one-job-is-not-enough-to-make-ends-meet.html | Millennials worry that one job is not enough to make ends meet | Millennials worry that one job is not enough to make ends meet
Getty Images
While the side-hustle is a popular way to make extra money, for many millennials it may be more of a necessity than a choice.
Taylor Rondestvedt, 25, said she would not have been able to afford all of her expenses without working on the weekends at a Swedish bakery in Manhattan and also teaching swimming lessons. The money from her former job as an editorial intern at a food magazine would not have covered her rent, phone bill, student loans, groceries and the occasional social event.
“I had to have at least one more job,” she said. Two meant she had more financial flexibility. After a year, she got a full-time position that paid more than her internship and was able to cut back on her side gigs.
More than half of recent graduates, those aged 24 to 28, said they are worried about having to work extra jobs and give up leisure activities to afford their student loan payments, according to a recent survey by Discover Student Loans.
VIDEO2:4202:42Millennials & Money: Student debt ripple effect
The reality of making student loan payments doesn’t fully register with students until after the grace period ends. Only 26 percent of students in college or who had very recently graduated had the same worries about extra jobs.
“Students don’t quite anticipate repayment until it hits them,” said Nicole Straub, vice president of marketing and product management for Discover Student Loans.
Student loan debt has climbed over $1.5 trillion, a record high. The average debt per student for the graduating class of 2017 was $39,400, according to Student Loan Hero.
For most who borrowed, that amount of debt equals an average payment of $351 per month, Student Loan Hero said. That can be a pretty big chunk out of each monthly paycheck, especially for college graduates making the projected average $50,390 annually, according to a study by Korn Ferry, an organizational consulting firm, which looked ahead at what 2018 graduates could expect to make in May.
Average starting salaries for 2018 college graduates by discipline
Discipline Average Salary 2018 Engineering$66,521 Computer Science$66,005 Math & Sciences$61,867 Business$56,720 Social Sciences$56,689 Humanities$56,688 Agriculture & Natural Resources$53,564 Communications$51,448
More than half of millennials have at least an occasional side-hustle, or second job, according to a recent survey by Bankrate. More millennials seek extra income from jobs other than their primary one than other age groups, the survey found. In fact, the likelihood of having a second job decreased with age.
Both parents and students are in agreement that a finding at least one job after graduating is a top priority, according to the Discover Student Loans survey.
“On many questions you see the answers for parents and students are not largely different,” Straub said. “We want alignment between those two parties.”
The top fear for parents is that their child will not be able to pay the monthly principal and interest payments on their student loans. Parents would also be willing to make sacrifices to erase their child’s debt, saying they’d give up social media, desserts, cell phones and their favorite shows if it would lessen the impact of loans.
More from Personal Finance:
“Parents are first and foremost seeking the best possible outcomes for their children,” said Straub. “They’re the ones who can see what life after college is going to be like.”
The more communication that happens between parents and students before, during and after college about student loans, the better, she said. There are many strategic choices that families can make to keep the cost of education down and ensure that student loan repayment is not a financial burden on children or parents, said Straub.
“Think about sources of free funding: scholarships, grants, work study,” Straub said. “Take advantage of these things first.”
Parents and students can use an array of free online tools to calculate how much interest they will pay on student loans, what their average payment may be and how long they will be making payments.
Parents are first and foremost seeking the best possible outcomes for their children. They're the ones who can see what life after college is going to be like.Nicole Straubvice president of marketing and product management for Discover Student Loans
Early planning for the financial impact of college can save students and families in the long run, especially as cost is a major constraint in selecting a school.
Students should also start planning for life post-grad while they are still in school. They can work while in school, plan a budget and even put money towards their student loan repayments early.
“As graduates prepare to go out on their own, they should take time to review their personal finances and prepare a monthly budget that will accommodate not only rent, food and having fun but a potential student loan payment,” said Straub.
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be00764d86b830ccfd9756f2f4a2b4cd | https://www.cnbc.com/2018/07/16/gold-prices-edge-up-from-7-month-low.html | Gold steadies as weak physical demand, higher US rates weigh | Gold steadies as weak physical demand, higher US rates weigh
Stockbyte
Gold steadied on Monday as weak physical demand in top-consuming regions and the expectation of higher U.S. interest rates weigh, despite the bullion-priced U.S. dollar losing steam.
Spot gold lost 0.03 percent at $1,240.61 per ounce.
U.S. gold futures for August delivery settled down $1.50 at $1,239.70.
A lower U.S. currency makes dollar-denominated gold cheaper for holders of other currencies, which typically boosts bullion demand. However, low physical demand in top gold-consuming countries China and India and the continued expectation of the U.S. Federal Reserve to raise interest rates pressured bullion, traders said.
"It seems the second quarter Chinese figures are putting a damper on the metals," said George Gero, managing director of RBC Wealth Management.
China's economy expanded at a slower pace in the second quarter as Beijing's efforts to contain debt hurt activity, while June factory output growth weakened to a two-year low.
India's gold imports fell for a sixth month in June to 44 tonnes as a drop in the rupee lifted local prices to their highest in nearly 21 months, curtailing demand.
"Indian and China retail consumption has been hindered by depreciating local FX," Citi analysts said in a note. "Investors may favor gold again, especially if trade friction rises further and becomes a more sizable threat to economic growth and to the decade-long equity market bull run."
The U.S. dollar fell as investors pared back long bets on the greenback and rebalanced their positions ahead of Fed Chairman Jerome Powell's first congressional testimony on Tuesday. He is expected to reiterate the Fed's gradual monetary policy tightening. Gold does not earn any interest or dividends and costs money to store and insure.
Meanwhile, holdings for the largest gold-backed exchange-traded-fund New York's SPDR Gold Trust, have fallen more than 8 percent since late April to less than 26 million ounces, showing fading investor interest in bullion.
Silver gained 0.06 percent at $15.789. Platinum slipped 0.27 percent at $823.50. Palladium declined 2.13 percent at $917.00, earlier dipping to $914.75, its lowest since April 9. Analysts expect palladium prices to remain supported.
"Our indicators suggest that palladium remains the tightest it has been in about 20 years -- and is expected to remain in deficit," Citi analysts said, adding they expect a palladium market deficit of 458,000 ounces this year and a 608,000 shortfall next year.
VIDEO6:3606:36Market just did something that might mean new highs aheadFast Money
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0396b8bee2e8ca32d6f17e58d1c93ba5 | https://www.cnbc.com/2018/07/16/industrial-production-june.html | Industrial production rebounds in June on manufacturing, mining power | Industrial production rebounds in June on manufacturing, mining power
A worker cuts a steel coil at the Novolipetsk Steel PAO steel mill in Farrell, Pennsylvania.Aaron Josefczyk | Reuters
U.S. industrial production increased in June, boosted by a sharp rebound in manufacturing and further gains in mining output, the latest sign of robust economic growth in the second quarter.
The Federal Reserve said on Tuesday industrial production rose 0.6 percent last month after a downwardly revised 0.5 percent decline in May. Economists polled by Reuters had forecast industrial production rising 0.6 percent last month after a previously reported 0.1 percent dip in May.
Industrial production increased at a 6.0 percent annualized rate in the second quarter, faster than the 2.4 percent pace logged in the January-March period.
Manufacturing output surged 0.8 percent in June after decreasing 1.0 percent in May. A 7.8 percent jump in motor vehicle production buoyed manufacturing output last month. Motor vehicle production declined 8.6 percent in May after a fire at a parts supplier caused a sharp drop in the assembly of trucks.
The data came on the heels of a report on Monday showing retail sales not only rose solidly in June, but were much stronger than previously reported in May.
Strong industrial production and retail sales, together with smaller trade deficits in April and June, suggest economic growth accelerated sharply in the second quarter.
Gross domestic product estimates for the April-June quarter are as high as a 5.2 percent rate, more than double the first quarter's 2 percent pace.
Manufacturing, which accounts for about 12 percent of the economy, is being supported by a strong domestic and global economy. But escalating trade tensions between the United States and its major trade partners, including China, Canada, Mexico and the European Union, could undercut business spending.
The International Monetary Fund warned on Monday that tit-for-tat import tariffs threatened to derail the global economic recovery, adding that the U.S. was especially vulnerable to a slowdown in its exports.
Manufacturing output increased at a 1.9 percent rate in the second quarter after growing at a 1.7 percent pace in first quarter. In June, there was an increase in the production of wood, computer and electronic products as well as aerospace and miscellaneous transportation equipment.
Mining production increased 1.2 percent, adding to the 2.2 percent rise in May. Mining output has surpassed its previous historical peak, which was set in December 2014.
Oil and gas well drilling rose 2.9 percent in June, with further gains likely following recent increases in oil prices. Mining output accelerated at a 19.4 percent rate in the second quarter after notching a 11.0 percent pace in the first quarter.
Utilities output fell 1.5 percent in June after declining 0.7 percent in May.
With production increasing solidly last month, capacity utilization, a measure of how fully firms are using their resources, increased to 78.0 percent from 77.7 percent in May. It is 1.8 percentage points below its 1972-to-2017 average.
Officials at the Fed tend to look at capacity use measures for signals of how much "slack" remains in the economy and how far growth has room to run before it becomes inflationary.
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ddee0e598a286c4c1a500bd09b64bf41 | https://www.cnbc.com/2018/07/16/netflix-isnt-doomed-by-one-quarter-unless-people-start-questioning-th.html | Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis | Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis
Netflix CEO Reed Hastings.Philippe Huguen | AFP | Getty Images
The core theory of Netflix's wild run to a $175 billion valuation hasn't been debunked with one quarter of slower growth than forecast.
But the Q2 miss might make some investors reconsider why they're betting on Netflix in the first place.
The basic hypothesis for bulls is that Netflix is on its way massive global subscriber growth that will eat away at legacy media companies. As I wrote about here, analysts nearly universally expect Netflix subscribers to keep soaring -- to 200 million and higher by 2020.
Nothing announced today undercuts that general idea. Netflix again announced significant growth, adding 5.2 million customers to 130 million global subscribers.
The problem was the company's own internal prediction pegged that quarterly number at 6.2 million. Missing by 1 million customers is a lot, especially because Netflix has gained a reputation for beating its own estimates. Netflix also didn't really offer a reason, other than blaming their own forecasting models. That's why the stock is down about 14 percent in after-hours trading. Netflix, itself, called the quarterly results "not stellar" in its letter to shareholders.
VIDEO6:2406:24Wall Street reacts to NetflixFast Money
If you thought Netflix would erode legacy media by outspending many of today's players (Lionsgate, Viacom, AMC, etc.), spending $22.5 billion per year on content by 2022 like Goldman Sachs reportedly predicted, nothing announced today changes that thesis.
As Daniel Ives from GBH Insights wrote in a note to clients, "We believe this is a speed bump rather than the start of a negative sub trend for Netflix, as the streaming market and content arms race continues to be a major tailwind for the company over the next 12 to 18 months." Ives has a target of $500 a share on the stock.
The problem is Netflix's huge content spend is aided by its valuation. When you increase spending and your stock rises, that's a sign to keep increasing spending.
When your stock starts moving the other direction over a sustained period of time, maybe you start pulling back on those gaudy spending predictions.
Nothing today yet suggests Netflix has changed its long-term focus -- and CEO Reed Hastings' attention to his company's long-term focus is unwavering. He's even posted it on the company's website.
But maintaining a high valuation certainly helps accelerate the strategy. If the valuation starts to shrink, the entire thesis could come under question.
VIDEO5:4005:40Netflix misses own estimates, but analysts not worriedClosing Bell
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e2effa25c25f1d5c8afc183819d3e338 | https://www.cnbc.com/2018/07/16/oil-falls-as-mnuchin-says-oil-buyers-may-get-iran-sanctions-waivers.html | US crude sinks 4.2%, settling at $68.06, after Treasury Dept eases market's Iran sanctions fears | US crude sinks 4.2%, settling at $68.06, after Treasury Dept eases market's Iran sanctions fears
Treasury Secretary Steve Mnuchin speaks during a TV interview at the White House in Washington.Kevin Lamarque | Reuters
Oil prices extended early losses on Monday, dropping about $3 a barrel, after Treasury Secretary Steve Mnuchin said some crude importers may receive waivers to continue buying supplies from Iran, despite U.S. sanctions on the Middle Eastern country.
"We want people to reduce oil purchases to zero, but in certain cases if people can't do that overnight, we'll consider exceptions," Mnuchin told reporters on Friday while traveling to Mexico, Reuters reported. The comments were under embargo until Monday morning.
Mnuchin told the reporters the Trump administration wants to avoid roiling global oil markets as it seeks to pressure Iran to make concessions on its nuclear program, ballistic missile tests and its role in regional conflicts. President Donald Trump withdrew the United States from the 2015 Iran nuclear deal and restored sanctions on Tehran in May.
U.S. West Texas Intermediate crude oil prices ended Monday's session down $2.95, or 4.2 percent, at $68.06. WTI has fallen for two weeks in a row, dropping from a 3½-year high above $75 a barrel.
Brent crude oil fell $3.49 per barrel, or 4.6 percent, to a three-month closing low of $71.84.
The Trump administration sent oil prices soaring three weeks ago after a senior State Department official told reporters the agency had been pushing Europeans to cut their oil purchases from Iran to zero by Nov. 4. The tougher-than-expected deadline raised concerns about shortages of oil at a time when supply and demand are finely balanced.
The State Department later signaled some leeway on the policy, and last week, Secretary of State Mike Pompeo said the administration will consider granting sanctions relief to a "handful of countries."
The Trump administration now appears to be moving towards the approach followed by President Barack Obama. When the Obama administration expanded sanctions on Iran, it allowed importers to continue buying Iranian crude so long as the purchasing country's overall imports fell by 20 percent every 180 days.
"The State Department has the ability to issue waivers around significant reductions in the oil markets, that's something that Treasury and State will be doing," Mnuchin said on Friday.
VIDEO1:4701:47The oil market is 'quite tight' now: Martin Place Securities
The United States can use its influence over the global financial system to apply so-called secondary sanctions on foreign companies that continue to do business with Iran. However, administration's aggressive policy threatens to raise oil prices and leave Americans paying more at the pump ahead of midterm elections in November.
The Trump administration is actively considering releasing oil from the nation's Strategic Petroleum Reserve to tame fuel prices, multiple news agencies reported on Friday. The Department of Energy did not return a CNBC request for comment on the reports.
Oil prices slipped earlier on Monday as concerns about supply disruptions eased and Libyan ports reopened, while traders eyed potential supply increases by Russia and other oil producers.
Russia and other oil producers may raise output by 1 million barrels per day (bpd) or more if shortages hit the market, Russian Energy Minister Alexander Novak said.
VIDEO1:3001:30Crude oil plummets 6 percent this weekHalftime Report
"If we need more than 1 million bpd, I don't rule out that we can quickly discuss it and make a quick decision," Novak told reporters on Friday.
OPEC, Russia and several other oil-producing nations agreed last month to raise output to tame rising crude prices. That partly unwound the producers' 18-month policy of limiting output following a prolonged price slump.
A Norwegian union for workers on offshore oil and gas drilling rigs stepped up a six-day strike on Monday that has hit oil output.
Production at Libya's giant Sharara oilfield was expected to fall by at least 160,000 barrels per day (bpd) after two staff were abducted in an attack by an unknown group, the National Oil Corporation said on Saturday.
— Reuters contributed to this report.
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69afcc06bfdc1ca7b364d05a4b5f0e9d | https://www.cnbc.com/2018/07/16/oil-markets-eye-potential-supply-increases.html | Oil prices fall but supply tight with focus on outages | Oil prices fall but supply tight with focus on outages
Pump jacks and wells are seen in an oil field on the Monterey Shale formation, March 23, 2014, near McKittrick, Calif.Getty Images
Oil prices slipped on Monday as concerns about supply disruptions eased and Libyan ports reopened while traders eyed potential supply increases by Russia and other oil producers.
But global supply remained tight with investors wary over the impact of production losses in several exporting countries.
"There are mixed supply signals," said Kim Kwang-rae, analyst at Samsung Futures.
Brent crude was down 30 cents at $75.03 a barrel by 0750 GMT. U.S. light crude was down 50 cents at $70.51.
Supply outages in Libya, a labor dispute in Norway and unrest in Iraq all helped push oil prices higher late last week, although prices still fell for a second straight week.
Russia and other oil producers may raise output by 1 million barrels per day (bpd) or more if shortages hit the market, Russian Energy Minister Alexander Novak said.
"If we need more than 1 million bpd, I don't rule out that we can quickly discuss it and make a quick decision," Novak told reporters on Friday.
Production at Libya's giant Sharara oilfield was expected to fall by at least 160,000 barrels per day (bpd) after two staff were abducted in an attack by an unknown group, the National Oil Corporation said on Saturday.
A Norwegian union for workers on offshore oil and gas drilling rigs stepped up a six-day strike on Monday that has hit oil output.
In Iraq, two protesters dies on Sunday in clashes with security forces in the town of Samawa amid anger in southern cities over public services and corruption.
Demonstrations have not yet affected crude production in Basra, whose shipments account for more than 95 percent of OPEC producer Iraq's state revenue. But any disruption could severely impact the country's economy and push up prices.
Investors are also on edge over the impact of the trade dispute between the United States and its big trading partners.
U.S. President Donald Trump and Russian President Vladimir Putin are set to hold their first stand-alone meeting in Helsinki on Monday. Trump has been vocal about his dissatisfaction with higher oil prices, asking OPEC to lower prices.
Stephen Innes at futures brokerage OANDA said U.S.-China trade tensions "should subside this week and could be a possible plus for oil prices," but a possible sale of U.S. oil reserves would hurt prices.
The United States holds a reserve of about 660 million barrels, and the Trump administration was considering drawing on the country's oil reserve, which would increase supply, according to a Bloomberg report.
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f0c765d722049dc6807eed83a662434d | https://www.cnbc.com/2018/07/16/petco-to-reinvent-the-pet-store-with-something-you-cant-buy-online.html | Petco tries to 'Amazon-proof' its business with a new store | Petco tries to 'Amazon-proof' its business with a new store
The outside of the PetCoach store by Petco in California. Petco
Petco is trying to Amazon-proof its business. Time will tell if the strategy really works.
The privately held pet-goods retailer has just opened a new service-focused store that aims to give shoppers something they can't buy online. A pilot location opened this past Friday in San Marcos, California. Called PetCoach, it offers grooming, training, veterinary care, dog walking and more to pet parents, in addition to a limited assortment of products.
The company said it plans to open more of these spaces in the future, using the San Marcos location as a testing ground. Part of this experiment also includes a new membership option.
"If you aren't testing and trialing new things you are going to struggle to be really relevant five years from now," Brock Weatherup, executive vice president of strategic innovation and digital experience at Petco, told CNBC. Keeping the growing audience of "millennial pet owners" in mind, Petco wanted to "be able to figure out what the world of retail looks like five years from now," he said.
The launch of the new PetCoach store comes as the pet-goods industry overall has been under increasing pressure, with margins being squeezed thinner.
Amazon has its own pet food brand called Wag. Privately held rival PetSmart acquired Chewy.com, a pet food and product site, in 2017 in a deal sources say was valued at roughly $3 billion. The company though, has been slow to integrate, which is leaving it grappling with the debt-load it brought.
Then, pet brand Blue Buffalo, now owned by General Mills, has been moving out of the specialty space and into mass retailers like Walmart and Target, forcing companies like Petco and PetSmart to either bring in other specialty brands or invest in their own to compete. Earlier this year, Petco announced a partnership with JustFoodForDogs to bring fresh items into stores.
"I've studied Amazon and I'm impressed by them and admire them," Weatherup said. "But we feel really good about our chances to Amazon-proof our business. ... We believe there's a huge part of what we do that Amazon cannot [do]."
The new PetCoach store by Petco in California. Petco
At the new PetCoach space, customers will be able to drop off their pets to work with trained specialists, in addition to the other services available there. Online, appointments to PetCoach can be booked in advance, and Petco will also offer digital access to health advice from licensed veterinarians, if care is needed immediately or in the middle of the night.
At 12,000 square feet, PetCoach is smaller than a typical Petco store, and two-thirds will be dedicated to services, with the remainder used for products for sale, Weatherup said.
The company is also testing a new PetCoach membership with the store launch. It costs $9 per month and gives customers a handful of free veterinary visits for their pets every year, along with discounted rates on all the merchandise inside. Petco might consider adding a yearly membership option down the line, depending on customer feedback, Weatherup added. "We're in the early stages of doing a lot of these things."
The new PetCoach store by Petco in California.Petco
Petco has been down a bumpy road as a retailer.
In 2000, the San Diego-based company went private in a leveraged buyout by Leonard Green Partners and Texas Pacific Group. It then launched Petco.com in 2001, on the heels of the dotcom boom that began around 1995. Just a year later, Petco went public again and at that time had roughly 600 stores across the U.S.
Following four years of being a public company, Petco in 2006 was taken private again by a group of private-equity firms, which were led by TPG, in a deal valued at $1.4 billion. CVC Capital Partners and Canada Pension Plan Investment Board then in 2015 agreed to buy Petco for roughly $4.6 billion. The company operates more than 1,500 Petco and Unleashed by Petco stores today. Petco also late last year acquired PupBox, a subscription service for dog owners.
"What we're doing [in San Marcos] today will look very different a year from now. If it doesn't, then I've failed," Weatherup told CNBC. "This is where people go to be educated. ... Even the small things are really important."
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6b9a6202abd5e8d07988947219a3ba98 | https://www.cnbc.com/2018/07/16/putin-nemesis-bill-browder-russian-leader-plays-trump-like-a-fiddle.html | Putin nemesis Bill Browder: Russian president is playing Trump and the US 'like a fiddle' | Putin nemesis Bill Browder: Russian president is playing Trump and the US 'like a fiddle'
VIDEO10:1510:15Kremlin critic Bill Browder responds to Putin's accusation of funding Clinton campaignPower Lunch
President Donald Trump is being “played” by Russia President Vladimir Putin, prominent Kremlin critic and Putin nemesis William Browder told CNBC on Monday.
Trump and Putin met in Helsinki on Monday, just days after 12 Russian government officials were indicted for trying to interfere in the 2016 presidential election.
However, after the Putin meeting, Trump declined to denounce Russia’s efforts.
Browder, co-founder and CEO of Hermitage Capital Management, called Putin a “very clever man.”
“He’s been at this game for a long time," Browder said, pointing out that Putin was once in the KGB.
"He’s been thinking about this summit for months and months and months and looking at every different nuance and potential weakens of Trump,” he told “Power Lunch.”
“He’s playing Trump and the United States like a fiddle right now.”After the meeting Monday, Trump told reporters that Putin was “extremely strong and powerful in his denial” that Russia meddled in the 2016 U.S. presidential election.
The president blamed “both countries” for the strained relationship and brought up Hillary Clinton’s email server when asked if he would denounce Russia’s attempts to interfere in the election.
Browder said Trump’s public statements have been “awful and unpleasant.” However, he noted that the president is surrounding himself with people like Defense Secretary Jim Mattis, Secretary of State Mike Pompeo and Nikki Haley, U.S. Ambassador to the U.N., who are “completely clear eyed about what a criminal and monster Vladimir Putin is.”
“It kind of doesn’t make sense. I would almost describe it as schizophrenic because U.S. policy towards Russia is actually quite tough,” he said. “It’s not clear what Trump could actually do because the apparatus doesn’t agree with him.”
Browder, a longtime target of Putin’s, was called out by the Russian president during the post-meeting news conference on Monday for allegedly making money illegally and contributing to Hillary Clinton. Putin said if Russia cooperates with the U.S. then the Americans should cooperate with Russia and help them prosecute foes, including Browder.
Browder denied the charges and said he never contributed to any U.S. candidates, noting that he is not an American citizen.
“Vladimir Putin and his regime have accused me of serial killing, of being a CIA, MI-6 agent and about a thousand other things,” he said. “He’s kind of unhinged in these accusations.
The White House didn’t immediately return a request for comment on Browder’s remarks.
— CNBC’s Amanda Macias and Tucker Higgins contributed to this report.
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33fec58ac28a777bc78e225a4f0fdf5a | https://www.cnbc.com/2018/07/16/retirement-should-be-a-transition-to-meaningful-exciting-work.html | Don’t call it retirement. Call it 'transitioning to a new chapter' | Don’t call it retirement. Call it 'transitioning to a new chapter'
Far too often, people in the United States are retiring with plenty of “gas left in their tank,” only to find it difficult to transition into that next chapter in their life’s journey.
According to the World Health Organization, people are living longer, and human longevity will continue to increase in the coming decades. This projection yields more urgency for people to design lifestyles around activities we find mentally stimulating.
Alija | Getty Images
For some, working in retirement, particularly work that centers around a person’s passion, can be fulfilling in a variety of ways. To that point, the “out to pasture” stereotype linked to retirement, particularly in the United States is now stale and untrue.
As wealth managers for 22 years, we have watched many clients engage in activities that keep them curious or mentally "plugged in.” We have seen clients go back to school, travel to experience different cultures, embark on entrepreneurship and become part of impactful philanthropy.
They strive to learn more in areas of interest and have challenged themselves in ways that promote some healthy anxiety because they are pushing themselves outside their comfort zone. After all, as human beings, we are wired for continued growth, regardless of age.
If we remain in our comfort zone and design our life around activities that always keep us there, we aren’t necessarily growing. Experiencing personal growth and engaging in activities necessary for this growth can keep us young, engaged and vibrant.
More from Straight Talk:Four ways retirees botch Social SecurityHow money can, in fact, buy happinessDebts to watch as Fed raises rates
If we center our conversation around what we’re passionate about and what will stimulate lifelong growth, we can retire to our passions rather than just from our previous jobs or careers. We then flip the internal dialogue that has red-flagged our brains due to forthcoming change as we approach retirement. This creates ambition and excitement rather than uncertainty and hesitation. We should all be curious about the next chapter in life.
A study by University at Buffalo psychologists Todd Kashdan, Paul Rose and Frank Fincham concluded that curiosity is very good for people. Their study found that the degree to which we are curious will actively influence our personal growth.
There are many people in the United States who have amassed financial independence, allowing them to comfortably retire from their job/career. However, they’re stifled by uncertainty as to what to do next. Financially, they no longer need to work, but they have no idea what to do in their golden years. So these people continue to reluctantly work due to the uncertainty their future holds.
As an example, we recently met with clients Jeff and Ellen, both in their late 50s and living in upstate New York. Jeff has recently retired, but Ellen is still working at a dental office. When we asked if she enjoyed her work, she responded, “No, but I don't know what else I would do with my time.” Too many people are in this holding pattern where they are doing something they don't particularly enjoy because they have no idea what to do in the next chapter of their life.
The term retirement is described as someone withdrawing from active work. Yet many Americans who have withdrawn from active work are now engaged in more meaningful, purposeful and exciting work and activities in “retirement.”
Perhaps we need to replace the word retirement with transition. It seems more suitable, because it means movement, passage or change from one stage to another.
Isn’t that what many of us are doing? As we enter this pivotal time in our life, our mindset can shift by transitioning into a new, exciting chapter of life. All we need to do is confidently turn the page.
— By Christopher C. Giambrone and Dennis D. Coughlin, co-founders of CouglinGiambrone
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e643e673e185aaeb83166a82bb3e0898 | https://www.cnbc.com/2018/07/16/trump-putin-summit-us-president-arrives-in-helsinki-to-meet-russian-c.html | Trump meets Putin behind closed doors after scolding US policy on Russia | Trump meets Putin behind closed doors after scolding US policy on Russia
VIDEO5:0805:08Trump-Putin arrive at Helsinki palaceSquawk Box
President Donald Trump and Russia's Vladimir Putin arrived in Helsinki for much-anticipated talks on Monday, shortly after Trump had blamed “U.S. foolishness” for souring relations between Washington and Moscow.
Trump and Putin are scheduled to meet at the presidential palace for a direct meeting with only their interpreters present, followed by a working lunch accompanied by advisers. The global leaders are then expected to host a joint press conference later in the day.
In his opening remarks to the media before a closed-door meeting with Putin, Trump said that getting along with Russia would be a "good thing, not a bad thing."
He had said earlier that previous U.S. administrations — and not Moscow — were to blame for a steep decline in U.S.-Russia relations in recent years.
“Our relationship with Russia has NEVER been worse thanks to many years of U.S. foolishness and stupidity and now, the Rigged Witch Hunt!” Trump said via Twitter on Monday morning.
Tweet 1
The official Twitter account of the Russian foreign ministry liked the tweet, shortly before posting a response saying: "We agree."
The U.S. president’s comments appeared to show just how much domestic political pressure he is under while meeting with his Russian counterpart in the Finnish capital.
Some U.S. lawmakers had called on Trump to consider scrapping the summit altogether after 12 Russians were charged with hacking on Friday.
The defendants, all of whom are Russian intelligence officers, were accused of launching cyber attacks on the Democratic presidential campaign in 2016. Russia has denied any collusion took place.
The summit was due to start at 1 p.m. local time (6 a.m. ET), though Putin — who is notorious for making his diplomatic guests wait on his arrival — stepped off the plane at around 1:15 p.m. Both leaders eventually met at the presidential palace shortly after 2 p.m., over one hour after the summit was due to begin.
The first official dialogue between the two global leaders was seen as a symbolic end to an effort among Western allies to try to isolate Russia after its 2014 annexation of Crimea.
Officials of the White House and the Kremlin had sought to downplay expectations ahead of the summit, though Trump had predicted “maybe some good” could come of the talks.
“Anything you do, it’s always going to be, ‘Oh Russia, he loves Russia,’” Trump said on Friday during a joint press conference with British Prime Minister Theresa May.
Meanwhile, for Putin, the fact that this summit is happening at all is seen as a geopolitical victory for Russia. That’s because talks between the U.S. and Russia could be viewed by Putin’s inner circle as evidence Washington is finally willing to recognize Moscow as a great power on the international stage.
The Helsinki summit constitutes the final destination of an almost week-long European trip for Trump, during which he has frequently challenged traditional Western allies.
Over the past week, Trump has sown doubts about America’s commitment to the NATO alliance, reportedly threatened to kill off a potential trade deal with the U.K. post-Brexit and described the EU as a “foe” of the world’s largest economy.
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59e385dfd1d23a10df54a6e387d52da4 | https://www.cnbc.com/2018/07/16/trump-says-he-and-putin-will-end-up-with-extraordinary-relationship-.html | Trump says summit off to 'a very good start' after two-hour private meeting with Russian President Vladimir Putin | Trump says summit off to 'a very good start' after two-hour private meeting with Russian President Vladimir Putin
VIDEO5:0805:08Trump-Putin arrive at Helsinki palaceSquawk Box
HELSINKI — After a nearly hourlong delay, U.S. President Donald Trump and Russian President Vladimir Putin sat down in Finland's capital on Monday for their first official dialogue.
Emerging from the meeting, Trump said the talk was a "very good start for everybody." The summit lasted more than two hours, longer than the 90 minutes that had originally been planned.
Earlier on Monday the president predicted that he and Putin would have an "extraordinary relationship" and that he is looking forward to their discussion.
Monday's highly anticipated meeting takes place in the wake of a contentious NATO summit, and only days after the U.S. Justice Department charged 12 Russian intelligence officers with hacking Democrats in an attempt to interfere with the 2016 election. That indictment includes the most detailed U.S. accusations yet that Moscow meddled in the election in favor of Trump.
Trump had insisted the two leaders meet early in the day without any aides present — stirring concerns that Putin, a former KGB officer, will outflank his American counterpart.
"We will have discussions on everything from trade, to military, to missiles, to nuclear, to China," Trump said calling Chinese President Xi Jinping a "mutual friend."
Trump added it is important to improve the relationship between Washington and Moscow.
"I think we have great opportunities together as two countries that frankly have not been getting along very well for the last number of years," Trump said. "I really think the world wants to see us get along."
Trump also said because the U.S. and Russia are "the two great nuclear powers," they would have to discuss nuclear weapons. "We have 90 percent of the nuclear and that is not a good thing, that's a bad thing and I hope we can do something about that," Trump said.
In order to calm new fears of a budding arms race, Trump said he would discuss reducing nuclear weapons with Putin.
"If we can do something to substantially reduce them, I mean, ideally get rid of them, maybe that's a dream, but certainly it's a subject that I'll be bringing up with him," Trump said last week. "The proliferation is a tremendous, I mean, to me, it's the biggest problem in the world, nuclear weapons, biggest problem in the world."
One option Trump may present to Putin is a new nuclear weapons agreement. The New START treaty, which is the current nuke agreement, is slated to expire in 2021.
Meanwhile, Moscow has accelerated its development of hypersonic weapons, threats the U.S. is currently unable to defend against.
In March, the Russian leader touted his nation's hypersonic weapons as "invincible" during a state of the nation address.
"I want to tell all those who have fueled the arms race over the last 15 years, sought to win unilateral advantages over Russia, introduced unlawful sanctions aimed to contain our country's development: You have failed to contain Russia," Putin said during his address.
Of the six weapons Putin debuted in March, CNBC has learned that two of them will be ready for war by 2020, according to sources with direct knowledge of U.S. intelligence reports.
Russia's President Vladimir Putin (R) and U.S. President Donald Trump attend a meeting in Helsinki, Finland July 16, 2018.Alexei Nikolsky | Kremlin | Reuters
Just hours before the two leaders met, Trump on Twitter blamed the tense relationship with Russia on past U.S. policy.
"Our relationship with Russia has NEVER been worse thanks to many years of U.S. foolishness and stupidity and now, the Rigged Witch Hunt!," he wrote shortly before he met with Putin.
TWITTER
The Russian Foreign Ministry "liked" his tweet.
Trump did not mention if the two will discuss the crisis in war-torn Syria, denuclearization of the Korean Peninsula, or the ongoing investigation of Russia's attempts to influence the 2016 U.S. presidential campaign.
In an interview with CBS that aired on Sunday, Trump said he would "certainly" ask the Russians in Helsinki about the hacking before pivoting to the role his predecessor may have had in the matter.
"This was during the Obama administration," Trump said. "They (Russians) were doing whatever it was during the Obama administration."
Trump said he had not considered asking Putin for the extradition of the indicted agents to the U.S. to face the charges against them.
"I hadn't thought of that," he said prior to his meeting with the Russian leader.
Meanwhile, the Kremlin has played down expectations from the summit but said the meeting would be a "first step" in resolving a crisis in ties.
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d1ff9939bb21bc2a5493004759cdae79 | https://www.cnbc.com/2018/07/16/uk-fighter-jet-a-problem-for-leonardo-with-no-deal-brexit.html | No Brexit deal would be a problem for us, Leonardo chief says | No Brexit deal would be a problem for us, Leonardo chief says
VIDEO2:3302:33Brexit no-deal would be a problem for us, says Leonardo chief executiveFarnborough International Airshow
A major European defense contractor has said a 'no-deal Brexit' will impact its operations in the United Kingdom.
Weekend newspaper reports suggested that the U.K.’s blueprint for leaving the EU was not impressing officials in Brussels and the British government was intensifying efforts to prepare for a “no deal” scenario whereby the country adopts World Trade Organization rules.
Alessandro Profumo, CEO of Leonardo Spa, told CNBC’s “Squawk Box Europe” on Monday he remained optimistic that a deal to resolve ongoing cooperation among European defense firms could be struck, but that the stakes were high.
“For us, an eventual no deal with the EU would be a problem because we have a significant presence in the U.K.,” he said. “I hope that next month there will be the capability for the base of continuous cooperation in the defense areas. This is very important for the U.K. and EU as well.”
BAE Systems, Rolls-Royce and Leonardo Spa have teamed up to build Britain's next generation plane, according to Reuters. British Defense Minister Gavin Williamson is reportedly due to unveil the model at this week’s Farnborough International Airshow, with an initial £2 billion earmarked for the project.
A newly designed and manufactured U.K. jet would be seen as a replacement for the Eurofighter Typhoon. Committing to the project represents a new direction for the British government, which had in the past indicated it would simply manufacture parts for planes such as the US military’s F-35.
Profumo said Monday that being part of an all new British jet was “very important” to his company.
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beaacba228f48d9f2de04c65f7bf0aba | https://www.cnbc.com/2018/07/16/watch-trump-and-putin-hold-joint-press-conference-in-helsinki.html | Watch: Trump and Putin hold joint press conference in Helsinki | Watch: Trump and Putin hold joint press conference in Helsinki
President Donald Trump and Russia's Vladimir Putin are scheduled to hold a joint press conference Monday following their one-on-one meeting in Helsinki, Finland.
The first summit between the two leaders arrives just three days after the Trump administration's Justice Department charged 12 Russian government officials with interfering in the 2016 U.S. presidential election.
The already-tense, high-level meeting between the two adversarial powers boiled over just before the press conference began, when a reporter in the audience was forcibly removed by numerous Russian security guards. That person, who was reportedly with The Nation, a progressive political news weekly, was holding a sign saying "nuclear ban treaty" before being dragged from the hall.
Before Deputy Attorney General Rod Rosenstein announced the new indictment on Friday, Trump said in a presser alongside UK Prime Minister Theresa May that he would "absolutely" ask Putin about the Kremlin's role in the election meddling.
But if Putin denies any involvement in the hack of Democrats during the campaign, Trump said, “All I can do is say, ‘Did you?’ And, ‘Don’t do it again.’ But he may deny it.”
Trump addressed the new charges during a series of tweets over the weekend, criticizing the Obama administration for not adequately responding to the Russian meddling threat at the time it occurred.
Trump tweet
The summit itself has been controversial since its announcement among critics of the president, who question his willingness to praise and work with Putin even as he attacks U.S. allies in Europe. After special counsel Robert Mueller's newest indictment was revealed, Democrats rushed to call on Trump to cancel the meeting.
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33943ef6a032ddfc625ff60347e080c2 | https://www.cnbc.com/2018/07/17/amazon-announces-2018-prime-day-results.html | Amazon says this Prime Day was its biggest shopping event ever with 100 million products sold | Amazon says this Prime Day was its biggest shopping event ever with 100 million products sold
VIDEO3:3403:34Amazon Prime Day 2018 tops previous recordSquawk Alley
Amazon said Wednesday that this year's Prime Day was its "biggest in history" as Prime members purchased more than 100 million products during this year’s event.
The Seattle giant did not provide specifics, and added it had more sign-ups for Prime on July 16 than any previous day in the company's history. Amazon uses the discount celebration to grab new members and promote its products and services.
The day was a boon for some of Amazon's own products, with some of its best-sellers being the Fire TV Stick, Echo Show and Echo Spot. Non-Amazon products also sold well including the Instant Pot multicooker and LifeStraw personal water filtration system.
Last year, Amazon said sales grew more than 60 percent during the event, breaking a record at the time and surpassing Amazon's Black Friday and Cyber Monday sales combined. The company had also added "tens of millions of Prime members" to its platform — helping it surpass 100 million people for the first time earlier this year.
When reached for further details about Amazon's sales growth this year, a spokeswoman for Amazon told CNBC the website has not "shared percentage growth this year."
It was also the first Prime Day that Amazon owned Whole Foods, which has been touting its own deals throughout the week and offered shoppers $10 to spend on Amazon if they spent $10 on groceries. At Whole Foods, the best-selling deal was organic strawberries, the company said.
Industry analysts had been anticipating Amazon could ring up at least $3.6 billion in sales globally through midnight Tuesday.
A series of glitches on Amazon's website Monday around 3 p.m. ET stalled many users from purchasing items or searching deals right away. But an early report said Prime Day sales on Amazon's third-party marketplace were up nearly 90 percent during the first 12 hours of the event from a year ago. (In 2017, Prime Day kicked off at 9 p.m. ET.)
"We know there were some disappointed customers and we regret any bad experience, even for just one customer," the Amazon spokeswoman said. "Fortunately, many Prime members were able to access our deals – that’s apparent in the numbers we’re seeing. And we have some key learnings for next year."
Amazon said late in the day Tuesday that small- and medium-sized businesses globally had already exceeded more than $1 billion in sales. (CNBC also this week reported on Amazon sellers who say they were unfairly suspended before Prime Day.)
Amazon shares hit a record high Wednesday morning, topping a market capitalization of $900 billion. Its stock had already been up about 80 percent from a year ago.
Retailers competing with Amazon have also been trying to soak up some sales this week, offering their own deals events online. Target, which had a one-day sale running on its website, said Tuesday it was the "highest single day of traffic and sales of 2018" online so far for the company.
According to Adobe Analytics, retailers with more than $1 billion in revenue saw a 54 percent increase in sales compared with an average Tuesday. The service did not say whether that increase includes Amazon. Adobe measures online transactions for 80 of the largest 100 U.S. web retailers.
Retailers with less than $5 million in revenue, though, saw online sales drop 18 percent on Prime Day.
"As a result of Amazon’s holiday increasing in popularity, numerous retailers offered deals on their own sites to combat Amazon, turning mid-July into a mini holiday shopping season. People love to comparison shop, with many turning to Amazon’s competitors to compare deals and prices. Prime Day has turned into a huge opportunity for all online retailers,” said Taylor Schreiner, director of Adobe Digital Insights.
Below is the full text of Amazon's release:
Prime Members Again Enjoyed the Biggest Global Shopping Event in Amazon History this Prime Day
Members worldwide purchased more than 100 million products during Prime Day
Members celebrated Prime Day with a week of savings at Whole Foods Market, where they saved millions of dollars -- the best-selling deal was organic strawberries
Best sellers worldwide were the Fire TV Stick with Alexa Voice Remote and Echo Dot -- making this, with 12-hour early access to device deals, the biggest event ever for Amazon devices SEATTLE--(BUSINESS WIRE)--July 18, 2018--
(NASDAQ:AMZN) -- On a day (and a half) with more than one million deals worldwide offered exclusively to Prime members, sales this Prime Day surpassed Cyber Monday, Black Friday and the previous Prime Day, when comparing 36-hour periods, making this once again the biggest shopping event in Amazon history. Prime members worldwide purchased more than 100 million products during this year's Prime Day event. Best-sellers worldwide were the Fire TV Stick with Alexa Voice Remote and Echo Dot -- making this, with 12-hour early access to device deals, the biggest event ever for Amazon devices. For the first time, U.S. Prime members celebrated Prime Day with a week of savings at Whole Foods Market. Members saved millions of dollars at Whole Foods Market with Prime Day deals, of which the best-selling deal was organic strawberries. Small and medium-sized businesses selling on Amazon far exceeded $1 billion in sales this Prime Day.
"Prime Day offers us a unique opportunity to thank Prime members with our best deals," said Jeff Wilke, CEO Worldwide Consumer, Amazon. "Extending Prime Day to a day and a half this year allowed us to further reward members with unbeatable deals, access to exclusive new products and unforgettable experiences that highlight the many benefits of a Prime membership. All of this was made possible because of our many valued associates -- the global team that continues to make Prime Day bigger and better."
Global Highlights from Prime Day 2018
-- A record number of Prime members shopped across 17 countries.
-- Amazon welcomed more new Prime members on July 16 than any previous day
in Amazon history.
-- Customers purchased millions of Fire TV devices on Amazon globally during
Prime Day.
-- Prime Day was the biggest event ever for Echo devices with screens, Echo
Show and Echo Spot.
-- Customers purchased more than five million items in each of the followingcategories: Toys, Beauty products, PCs and computer accessories, Appareland Kitchen products.-- Prime Day was the best event ever for Amazon devices for kids, includingEcho Dot Kids Edition, Fire 7 Kids Edition tablet and Fire HD 8 KidsEdition tablet.-- July 16 was the best day ever for Fire TV devices and Kindle e-readers onAmazon globally.
-- For the first time, members in Australia, Singapore, the Netherlands andLuxembourg participated in Prime Day.-- Millions of customers around the world streamed Unboxing Prime Day eventsincluding the Amazon Music concert with Ariana Grande as well as the PUBGSquad Showdown hosted by Twitch Prime with a performance by deadmau5.U.S. Highlights from Prime Day 2018This Prime Day, members enjoyed access to Amazon device deals 12 hours earlier. The Toshiba 4K Ultra HD Fire TV Edition (50-inch) and the Toshiba 4K Ultra HD Fire TV Edition (43-inch) are now the best-selling TV deals in Amazon history -- together selling over six times as many TVs compared to last year's record-setting Fire TV Edition. Other highlights include:-- July 17 was the biggest sales day for smart home devices in Amazonhistory, with over a million devices sold.-- Ring had its biggest day ever on Amazon on July 16, with the Ring VideoDoorbell Pro selling out.-- The Amazon Cloud Cam was the best-selling security camera deal in Amazonhistory.-- For the first time, U.S. Prime members celebrated Prime Day with a weekof savings at Whole Foods Market. Members saved millions of dollars atWhole Foods Market with Prime Day deals, of which the best-selling dealwas organic strawberries.-- Members purchased more than 300,000 Instant Pot 6 Qt 7-in-1 Multi Use and150,000 LifeStraw Personal Water Filters.-- Members stocked up for back-to-school and off-to-college season,purchasing millions of pencils and pens.-- Some of the top sellers from Amazon brands, by category, were Stone &Beam Ceramic Geometric Table Lamp; Presto! Ultra Soft Toilet Paper; DailyRitual Women's Jersey Short-Sleeve V-Neck T-Shirt Dress and AmazonBasicsPre-Seasoned Cast Iron Skillet.Prime Day Best Sellers by CountryCustomers' most popular purchase this Prime Day was the Fire TV Stick with Alexa Voice Remote, which was not only the best-selling Amazon device, but also the best-selling product from any manufacturer in any category across Amazon globally. Top sellers from around the world, excluding Amazon devices, include:-- U.S.: Instant Pot 6 Qt 7-in-1 Multi Use; 23 and Me DNA Test; LifeStrawPersonal Water Filter-- U.K.: Bosch Cordless Drill; Philips Hue Personal Wireless Lighting Lightstrip; Finish Dishwasher Tablets-- Spain: SanDisk Ultra 64GB memory card; Cecotec Conga Excellence 990 4 in1 iTech 3.0 robot vacuum cleaner-- Singapore: Coca-Cola Zero Sugar; Play-Doh Shape and Learn Shape a Story;Kleenex Ultra Soft Toilet Tissue-- Netherlands: Osmart Zigbee Smart Plug; Philips Hue White Ambiance GU10LED Spot; Sandisk Micro SD-- Mexico: Ace Powder Laundry Detergent; Amazon Basics USB Lightning Cable-- Luxembourg: Jamie Oliver Tefal pan; Brita water filter; Solar-lamp inPreserve Jar with USB connector-- Japan: Top Super Nanox Liquid Laundry Detergent + Extra Large Refill,SAVAS Whey Protein 100 cocoa flavor 1050g-- Italy: Finish Dishwasher Tabs All in 1 Max; Braun Multi-grooming KitPrecision Trimmer 9-in-1 for beard Styling; Hoover Rechargeable Broom2-in-1 Freedom-- India: Redmi Y2 Gold 32 GB smartphone; Tata salt; Mi 10000mAH Li PolymerPower Bank 2i-- Germany and Austria: PlayStation Plus Membership; Jamie Oliver Pan byTefal; Osmart Zigbee Smart Plug-- France: PlayStation Plus Membership; SanDisk Ultra 64GB memory card, TPLink Wi-Fi connected plug-- China: Philips Sonicare Healthy White HX6730 Toothbrush; Braun DigitalEar Thermometer; Paul & Joe Beaute Moisturizing Foundation-- Canada: Instant Pot 6 Qt 7-in-1 Multi Use; LifeStraw Personal WaterFilter; Bose QuietComfort Noise Cancelling Headphones-- Belgium: SanDisk Ultra 128GB memory card; Osmart Zigbee Smart Plug;Philips Hue lightbulbs-- Australia: PlayStation 4 Pro 1TB Console with Bonus Fortnite Content;FIFA 18 for PlayStation 4; Philips Hue lightbulbsUnboxing Unique Experiences Around the GlobeIn the week leading up to Prime Day 2018, millions of customers streamed the Unboxing Prime Day events. Amazon Music hosted an exclusive concert featuring Ariana Grande, Alessia Cara, Julia Michaels and Kelsea Ballerini in New York, Twitch Prime invited deadmau5 to take on the world's top gamers in a PUBG Squad Showdown in Los Angeles and customers in London, Tokyo and Milan were able to join in the live celebration with a number of unique experiences. Watch event highlights here.Spotlighting Small and Medium-Sized BusinessesSmall and medium-sized businesses selling on Amazon far exceeded $1 billion in sales this Prime Day. Products from these unique sellers increase variety, selection, and contribute to the ever-expanding inventory available to Prime members worldwide.Feedback from small businesses includes:"Prime Day 2018 has exceeded our expectations -- sales are up more than 400 percent over a typical day. We're excited to leverage the momentum as we move into the second half of 2018," said Caron Proschan, Simply Gum."Prime Day was the biggest single sales day of the year. We sold 10 times as many items as we sell on a regular day," said Chris Guiher, Vintage Book Art Co."Prime Day has been our most successful day ever when launching new products. We released 10 new items, and all 10 are up more than 300 percent over our previous launches," said Brandon Straub, Tegu."Prime Day has more than exceeded our best expectations. We've sold more Bakblade 2.0's than ever and sales are up 10 times a regular day," said Matt Dryfhout, Bakblade.Every Day Made Better with PrimePrime was designed to make your life better every single day. Over 100 million paid members around the world enjoy the many benefits of Prime, including shopping and entertainment. In the U.S. that includes unlimited access to award- winning movies and TV episodes with Prime Video; unlimited access to Prime Music, Audible Channels for Prime, Prime Reading, Prime Photos, Twitch Prime; early access to select Lightning Deals, one free pre-released book a month with Amazon First Reads, and more. Prime members can also get deep discounts on select popular products at Whole Foods Market plus an additional 10 percent off hundreds of sale items. Prime was built on the foundation of unlimited fast, free shipping and members receive Prime FREE One-Day Shipping and Prime FREE Same-Day Delivery in more than 8,000 cities and towns, two-hour delivery with Prime Now in more than 30 major cities and unlimited Free Two-Day Shipping on more than 100 million items. Start a free trial of Amazon Prime at amazon.com/prime.
VIDEO2:5502:55How to decide if Amazon Prime is worth the priceTech
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8907a0679de02b684580d0bf828306ec | https://www.cnbc.com/2018/07/17/bannon-da.html | STEPHEN BANNON AT DELIVERING ALPHA | WEDNESDAY, JULY 18, 2018 | STEPHEN BANNON AT DELIVERING ALPHA | WEDNESDAY, JULY 18, 2018
VIDEO0:2500:25Bannon on Russian meddlingDelivering Alpha
VIDEO0:3300:33Bannon on PutinDelivering Alpha
VIDEO0:1700:17Bannon on the midterm electionsDelivering Alpha
VIDEO0:3600:36Bannon on BitcoinDelivering Alpha
VIDEO0:2300:23Bannon on family separationDelivering Alpha
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9dffdb75bfd5af1a67b029e7cf30ad83 | https://www.cnbc.com/2018/07/17/blue-states-file-suit-against-federal-government-over-new-tax-law.html | Blue states file suit against federal government over SALT caps | Blue states file suit against federal government over SALT caps
Andrew CuomoDaniel Acker | Bloomberg | Getty Images
New York, Connecticut, Maryland and New Jersey are suing the federal government, alleging that the new $10,000 cap on state and local tax deductions (SALT) is an “unconstitutional assault on states’ sovereign choices.”
New York governor Andrew Cuomo announced the lawsuit on Tuesday morning, naming Steven Mnuchin, U.S. Treasury Secretary, and David Kautter, acting commissioner of the Internal Revenue Service, among the defendants. The lawsuit was filed in the Southern District of New York.
“The federal government is hell-bent on using New York as a piggy bank to pay for corporate tax cuts and I will not stand for it,” said Cuomo.
A Treasury Department spokesperson said the agency is reviewing the complaint.
The $10,000 limit on the SALT deduction was imposed as part of sweeping tax reform that took effect this year. In addition to permanently cutting the top corporate rate to 21 percent from 35 percent, lawmakers also reduced rates on individuals across the board and nearly doubled the standard deduction — although those changes are in effect only from 2018 through 2025.
At the same time, however, personal exemptions were eliminated and most deductions were axed. While the SALT deduction was retained, the $10,000 limit means homeowners in states with higher property taxes (and higher home values) will likely be impacted the most.
Cuomo claims that the elimination of the SALT deduction will cost New Yorkers $14.3 billion in 2018 alone and another $121 billion between 2019 and 2025.
More from Personal Finance IRS may nix blue states’ workaround on tax deduction caps High-tax states plan strategy in response to cap on SALT deduction Treasury, IRS have set their sights on blue states’ tax workarounds
In 2015, the average SALT deduction for New Yorkers who claimed the break was more than $22,000, according to the Tax Policy Center. In New Jersey, the average deduction was around $18,000.
The tax break for state and local taxes dates back to 1914, when a federal income tax was imposed after ratification of the 16th Amendment. Since then, the deduction has gone through various iterations, including changes to which taxes can count toward it.
As it stands, taxpayers with higher incomes will be affected the most by the cap. Of the 30 percent of people who took the SALT deduction in 2014, a majority (88 percent) of the benefit went to households with incomes above $100,000, according to 2017 study by the Tax Foundation.
“This lawsuit probably won’t go anywhere,” said Joseph Bishop-Henchman, executive vice president at the Tax Foundation. “But they can go to angry high-income people and say we tried to do something.”
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9813fa839027c76c0da05d9ed17989fd | https://www.cnbc.com/2018/07/17/brexit-campaign-group-vote-leave-referred-to-police-for-breaching-spen.html | Brexit campaign group Vote Leave referred to police for breaching spending rules | Brexit campaign group Vote Leave referred to police for breaching spending rules
Vote leave supporters wave Union flags, following the result of the EU referendum, outside Downing Street in London, Britain June 24, 2016.Neil Hall | Reuters
Britain's electoral commission said on Tuesday it had fined the officially designated pro-Brexit campaign group for breaching spending rules in the 2016 referendum and referred it to the police.
The commission said Vote Leave worked with another campaign group, BeLeave, which spent 675,000 pounds ($893,500) with Aggregate IQ, a company which used social media data to target voters, under a common plan with Vote Leave.
"We found substantial evidence that the two groups worked to a common plan, did not declare their joint working and did not adhere to the legal spending limits," Bob Posner, the commission's director of political finance and regulation.
Vote Leave was fined 61,000 pounds and the Electoral Commission referred David Halsall, the responsible person for Vote Leave, and Darren Grimes, the founder of the BeLeave campaign group, to the police for false declarations of campaign spending.
VIDEO7:0107:01Finsbury chairman: Vote Leave electoral law breach incredibly seriousStreet Signs Europe
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76d51de8ae279b4cb28dd234b34f10e8 | https://www.cnbc.com/2018/07/17/cramer-how-netflixs-stock-managed-to-taper-its-drop-after-earnings.html | VIDEO1:3601:36How Netflix's stock managed to taper its drop post earningsMad Money with Jim Cramer
When the stock of Netflix rebounded on Tuesday, driving the Nasdaq to a 52-week high, CNBC's Jim Cramer knew he had to explain Netflix's rally, especially after the company failed to appease investors with its second-quarter earnings report.
"Of course the stock was laid to waste," the "Mad Money" host said. "The mystery here is not why Netflix got shoved into the woodchipper like Steve Buscemi in Fargo; it’s how the heck was the stock able to claw back most of its declines in an almost Lazarus-like resurrection?"
Here are some of his theories.
First, even with growing competition from services like HBO Go and Hulu, Netflix still has a strong business with "fantastic growth," Cramer said, noting that Netflix's second-quarter subscriber count still grew by 5.15 million members.
Second, its latest earnings report put to rest concerns that binge-watching was dying, as Netflix's roster of offerings continued to gain traction.
Third, the "Mad Money" host suspected investors were giving Reed Hastings, Netflix's venerable co-founder, chairman and CEO, the benefit of the doubt.
"Investors don’t seem frightened about how much money Netflix is spending on new programming, and it's spending boatloads. They trust Hastings when he says he doesn’t mind all of these competing [paid services] popping up," Cramer said. "They’re not worried that the company might be charging people too much after its recent price increase."
Fourth, but perhaps most important, Cramer argued that the benefit of the doubt extended to Hastings' financial predictions.
"The buyers seemed to be saying, 'Look, given the tremendous strength in subscribers anyway, the real issue here is Netflix’s lousy forecasting,'" Cramer said. "Yep, Hastings simply extrapolated wrong, betting there would be over a million more subs because business had been just smoking hot going into the quarter. Netflix just muffed its prediction."
That perspective helped shares of Netflix substantially stem their decline, creating a kind of "leap of faith" into the streaming giant's stock during Tuesday's trading session, the "Mad Money" host explained.
Shares of Netflix closed down 5.24 percent on Tuesday having recuperated their late Monday and early Tuesday losses.
"You have literally never gone wrong buying Netflix on the dips," Cramer argued. "When you’ve got an amazing track record like the CEO, Reed Hastings, at Netflix, the market can be very forgiving."
VIDEO10:4710:47Cramer explains how Netflix's stock managed to taper its drop after being 'laid to waste' post-earningsMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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e9aa70f6b5ab1e151b913770c4de2bfc | https://www.cnbc.com/2018/07/17/how-student-loans-are-making-some-people-abandon-their-dreams.html | How student loans are making some people abandon their dreams | How student loans are making some people abandon their dreams
Student borrower looks for a job.Jonathan Alcorn | Bloomberg | Getty Images
Mary O'Mara is worried about her son.
Every day, the 27-year-old man comes home from his job as a supervisor at a big-box retailer, heads right to his bedroom, and then doesn't emerge again until the morning.
"He just sleeps," O'Mara, 62, said. "He's so depressed."
That's because his life wasn't supposed to unfold this way. At Rutgers University, he majored in marine science and minored in environmental protection policy. On internships, he traveled to Barbados and fought to protect turtles from poachers; in Key West, Florida, he nursed sick dolphins back to health. "From a child, he loved the ocean," O'Mara said. "He's a really smart kid."
When he graduated college, he was offered a position in Florida, training dolphins. He was thrilled, until he saw his monthly student loan bill: more than $1,000.
"That's when he broke," O'Mara said. Instead of following his dreams, he now works as a supermarket manager (where he makes a higher salary than he would as a trainer) and lives at home. "He thinks his life is over," O'Mara said. "He's twenty-seven and he thinks his life is over."
Student loans are having a perverse effect, according to a sparse, but building, body of research. The very debt that's taken on to allow one to pursue their dreams can later morph into a burden that requires them to then abandon those plans and grab a job that will just pay the bills.
Seven in 10 college graduates are in debt from their education. Americans are now more burdened by education loans than they are by credit card or auto debt. And more than half of student loan borrowers say that debt informed their career choice, according to a study by American Student Assistance, an educational nonprofit.
He's twenty-seven and he thinks his life is over.Mary O'Maraparent of a man burdened by education debt
In a working paper not yet published, two economists calculate that students with debt tend to be less choosy in their careers. An additional $2,500 in education loans brings down an individual’s likelihood of being employed in a job closely related to their major by almost 5 percentage points, they found.
"It is unfortunate that perhaps debt is making it hard for people to take jobs that have low pay but high non-monetary returns such as those in public service," said Nicolas Ziebarth, a co-author of the study and an associate professor of economics at Auburn University.
LorriAnn Sanchez knew she wanted to be a journalist since she was eight years old.
"I just knew that I was meant to tell people stories," she said. Throughout college and after, she worked for multiple newspapers in New Jersey. Along the way, she said she interviewed political candidates and won press awards.
VIDEO1:2301:23Student debt could hold back economic growth, Fed chief saysThe Fed
But her more than $70,000 in student debt weighed on her. "I realized that I wasn’t going to be able to live on $35,000 a year," said Sanchez, 54. "I quit the newspaper."
Now she works in medical writing for a pharmaceutical company, and the memories of what she gave up still bring her pain.
"It sucks to know what you’re supposed to do but to know you have to give it up because you can’t survive," Sanchez said. "It's devastating to me. If someone had said you can do this without all these loans, I would have done it."
Mark Kantrowitz, the publisher of SavingForCollege.com, analyzed U.S. Department of Education data to look at how student debt informs people's working lives. More than 60 percent of people who owe more than $100,000 for their education take a job outside of their field, compared with just 38 percent of those who owe $12,000 or less, he found.
"It's absolutely ironic," Kantrowitz said. "You go to a more expensive college, supposedly the best in your field, but take on too much debt, so you can't work in your field because of the need to repay the debt."
To be sure, student loans are what allow many people to attend college and study a field in the first place.
"Financial aid is critical to fund the best minds in our country," said Kate Bronfenbrenner, director of labor education research at Cornell University.
She also added that many people will hold on to their passions, by living a more modest lifestyle, although it's an increasing challenge. To that point, she said student loans aren't just challenging career goals, but homeownership and family plans as well.
"The debt is so high that people are having to readjust their dreams period," Bronfenbrenner said.
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39bd2120120618096d89116482bf4ab2 | https://www.cnbc.com/2018/07/17/netflix-stock-drops-on-pace-for-worst-day-in-two-years.html | Netflix pares losses after dropping on subscriber growth | Netflix pares losses after dropping on subscriber growth
Reed Hastings, chief executive officer of Netflix.Akio Kon | Bloomberg | Getty Images
Netflix pared losses Tuesday, ending the day just 5 percent down, after initially falling as much as 14 percent on a big miss on subscriber growth.
The stock was earlier on pace for its worst day in two years, tracking for the name's biggest single-day drop since July 19, 2016, when it fell 13 percent after a similar earnings report of weaker-than-expected subscriber growth.
The shares recovered by midday and closed at $379.48.
Netflix has a history of big rebounds, and much of Wall Street is expecting a recovery. But the initial drop is a notable stumble for one of the best-performing stocks of the year.
As of Tuesday's close, Netflix is up nearly 100 percent in 2018 and more than 130 percent in a 12-month period.
VIDEO2:3002:30Netflix's strategy is shaking up traditional media companies — here's whyDigital Original
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277ff5369c2ebdac422027d2f3b008ce | https://www.cnbc.com/2018/07/17/netflix-stock-has-a-history-of-big-rebounds.html | Netflix's history is filled with big stock declines – like today – followed by bigger rebounds | Netflix's history is filled with big stock declines – like today – followed by bigger rebounds
Reed Hastings, co-founder and CEO of Netflix.Michael Newberg | CNBC
Netflix shed 5 percent Tuesday after initially falling as much as 14 percent on a big miss on subscriber growth.
But the stock has a history of big rebounds.
Shares of Netflix fell by at least 10 percent on 13 occasions in the last decade, according to a CNBC analysis of Kensho data. On five of those occasions, shares tanked by more than 15 percent. The stock's largest single-day drop in that period came on October 25, 2011 when the stock shed nearly 35 percent after an earnings report.
But for more than half of those disastrous trading days, Netflix closed in the green on the following day, week and 3-month period, according to the Kensho data.
For the 13 incidents of a 10-plus percent drop in the last decade, Netflix posted an average gain of 0.2 percent the week after and an average gain of 12 percent three months later.
GBH Insights analyst Dan Ives called Monday's subscriber miss and subsequent hit to share price a "speed bump" for Netflix in a note to investors after the company's second quarter earnings report. Wall Street called it a "compelling" buying opportunity and refuted that the report would change the investment thesis.
The full recovery may not be immediate if the trend holds up — Netflix posted an average decline of 2 percent in the month following its 13 biggest drops of the last decade, according to CNBC's analysis of Kensho data. But Netflix needs another rebound if it wants to hang onto its high-priced valuation and continue its massive content spend. And if history is any indication, it'll get it.
VIDEO2:3002:30Netflix's strategy is shaking up traditional media companies — here's whyDigital Original
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add721bf9adbf876db9c610dc58790f0 | https://www.cnbc.com/2018/07/18/america-may-not-have-the-tools-to-counter-the-next-financial-crisis.html | America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson | America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson
U.S. Treasury Secretary Henry Paulson (L), Federal Reserve Chairman Ben Bernanke (C) and President and CEO of the Federal Reserve Bank of New York Timothy F. Geithner listen as FDIC Chairman Sheila Bair (not pictured) speaks at the Treasury Department Cash Room in Washington, October 14, 2008.Hyungwon Kang | Reuters
A decade after the 2008 recession, the policymakers who countered it on its front lines are worried that the U.S. may not be adequately armed for the next economic crisis.
Speaking at a roundtable discussion on Tuesday, former Federal Reserve Chairman Ben Bernanke and former Treasury Secretaries Timothy Geithner and Henry Paulson recounted the lessons they learned in the wake of the crisis, and where they fear Americans may have forgotten them.
“One of the most powerful lessons from this crisis should be that you want to work very hard to make sure that your defenses are robust,” Geithner was quoted by AP as telling the audience. “We let the financial system outgrow the protections we put in place in the Great Depressions and... made the system very fragile and vulnerable to panic.”
Loose banking regulations and excessive risk-taking helped plunge the U.S. into its worst economic crisis since the Great Depression of the 1930s. Nearly 9 million people were thrown out of work following the crash 10 years ago, and the slowness of the subsequent recovery, as well as exacerbated income inequality, led to widespread discontent that’s manifested itself in a broad populist backlash.
Current efforts are underway by Congressional Republicans and President Donald Trump to dismantle parts of the Dodd-Frank Act, which beefed up government regulation of the financial sector to close loopholes that enabled banks to engage in such risky behavior.
The former economic officials said that the changes so far made sense, like exempting some smaller banks from the law’s strictest requirements. Post-crisis reforms also strengthened the banking system and made it easier for big banks to be shut down rather than needing government bailouts.
But they cautioned against getting carried away with deregulation, and Geithner expressed concern that the emergency powers they were able to draw on in 2008 are “somewhat weaker” today.
VIDEO4:1804:18What is Dodd-Frank?CNBC Explains
Regulatory reforms placed restrictions on the Fed, the Treasury and the Federal Deposit Insurance Corp., ending their ability to make emergency loans to support troubled banks. The rules came in the wake of widespread public anger over the billions of taxpayer dollars provided to Wall Street in government bailouts. The policymakers chose that unpopular course of action over letting the whole banking system collapse, which they believe would have been far more disastrous.
Bernanke, who served under the George W. Bush and Barack Obama administrations, also pointed to the nation’s ballooning deficit, criticizing the timing of the Trump administration’s tax cuts and fiscal stimulus package amid nearly full employment.
Far higher debt and deficit levels than those of a decade ago also mean there is less insulation in the event a potential stimulus package is needed. Obama in 2009 implemented the controversial American Recovery and Reinvestment Act to offset the drop in private sector spending, at a price tag of more than $800 billion.
What’s more, the Fed has less room to lower interest rates in the event that more stimulus is needed — the bank’s benchmark rate target is now just 1.75 to 2 percent compared to 5.25 percent in summer of 2007.
Still, Geithner, Bernanke and Paulson praised a now stronger banking sector and the government’s improved ability to deal with failing institutions before they need bailouts.
But the economists, echoing numerous market players and public officials, stressed their concern over U.S. debt. Publicly-held federal debt is now 77 percent of gross domestic product (GDP) — double its 2007 level.
“If we don’t act, that is the most certain fiscal or economic crisis we will have,” Paulson said. “It will slowly strangle us.”
VIDEO3:2503:25Optimism has 'cracked' amid trade policy uncertainty, economist saysSquawk Box Europe
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50c859e1ead2975d639ebcf9a6da0fda | https://www.cnbc.com/2018/07/18/buffetts-berkshire-hathaway-loosens-policy-on-stock-buybacks.html | Berkshire Hathaway shares jump after Warren Buffett loosens policy on stock buybacks | Berkshire Hathaway shares jump after Warren Buffett loosens policy on stock buybacks
Warren BuffettDavid A. Grogan | CNBC
Berkshire Hathaway Inc on Tuesday eliminated a restriction on its ability to buy back its own stock, a change that could help billionaire Chairman Warren Buffett deploy more of the conglomerate's cash.
The new policy approved by Berkshire's board lets Buffett and Vice Chairman Charlie Munger authorize buybacks when both believe the repurchase price is "below Berkshire's intrinsic value," a determination that would be made "conservatively."
Berkshire's old policy said repurchase prices would not exceed 1.2 times book value per share, or assets minus liabilities.
The new policy is a major change for Berkshire, where Buffett has faced pressure to deploy more than $108 billion of cash and equivalents.
Berkshire's Class A shares closed Tuesday at $288,500, roughly 1.37 times its $211,184 book value per share as of March 31.
The Class B shares rose 2 percent in premarket trading Wednesday, following the announcement of the new policy.
"It's a somewhat significant change," said Steven Check, president of Check Capital Management Inc in Costa Mesa, California. Berkshire shares comprise about 20 percent of its $1.5 billion of assets.
"This is a good thing in an environment where Berkshire has a lot of excess cash, nothing to buy, and an underpriced stock," Check said.
Berkshire raised its repurchase threshold to 1.2 times book value from 1.1 times in December 2012.
The Omaha, Nebraska-based company spent $1.3 billion on share repurchases that month, mainly from the estate of a longtime shareholder. Berkshire has not disclosed any subsequent repurchases under its program.
Known as a bargain-hunter, Buffett has struggled to add large companies to Berkshire's stable of more than 90 businesses in the insurance, railroad, energy, retail and other sectors.
In recent months, he has used some cash to build a more than $40 billion stake in iPhone maker Apple Inc.
At Berkshire's annual meeting in May, Buffett resisted issuing a special dividend to shareholders, while supporting Apple's move to increase its own buybacks, saying that could boost the stock's value.
Munger, for his part, warned that some companies use repurchases simply to prop up their own stock prices.
Berkshire said it would not buy back stock under its new policy until it releases second-quarter results, scheduled for Aug. 3.
It also maintained it will not allow repurchases to reduce its cash and equivalents below $20 billion.
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8536a3dde4a39e7ae5727d8d3e162801 | https://www.cnbc.com/2018/07/18/earnings-growth-on-pace-to-top-the-first-quarters-record-increase.html | At this pace, earnings growth will top the first quarter's record 26% increase | At this pace, earnings growth will top the first quarter's record 26% increase
Michael Nagle | Bloomberg | Getty Images
So far, the second quarter has revealed American companies have not reached peak earnings yet.
With 10 percent of companies in the S&P 500 reporting as of Wednesday morning, it looks like another above-trend quarter. Forty-eight companies have disclosed second quarter profit and revenue well above expectations.
(48 companies reporting)
Earnings: up 25.3 percent
Revenue: up 10.1 percent
Source: Thomson Reuters
These compare to the estimate of 21.4 percent earnings growth for the as a whole, and are also well above the 8.2 percent revenue growth expected, according to Thomson Reuters.
The earnings beats have been particularly strong. Textron beat by 25 percent, WW Grainger by 17 percent and Morgan Stanley by 13 percent, according to Earnings Scout. So far, 87.5 percent of the companies reporting are beating expectations, way above the 64 percent that usually beat Wall Street's forecasts.
More importantly, guidance for future quarters is strong. Textron, CSX, United, and WW Grainger all guided higher (CSX on revenue) in the last 24 hours. As a result, earnings expectations for the third and fourth quarters are staying at the top end of their ranges. If this keeps up, we have a shot at passing the first quarter's record 26 percent earnings gain.
"These are very strong early results, and it's clear this is a lot more than just tax cuts," David Aurelio, who follows earnings for Thomson Reuters, told CNBC. "The fact that companies are beating expectations at such a high rate is a real positive, considering expectations were very high going into the quarter."
Aurelio said there is a good chance of beating the first quarter's record earnings growth, potentially surpassing it in the third quarter as well. He said he expects earnings to continue to grow into 2019, though without the benefit of the tax cuts they will not grow at the same pace as 2018.
"We may be approaching peak earnings growth sometime this year, but certainly not peak earnings," he said.
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70a7748b46955f6d2cc47b5597c76523 | https://www.cnbc.com/2018/07/18/google-rebukes-eu-anti-trust-ruling-claims-android-fosters-competitio.html | Google implies it may no longer give away Android for free following EU antitrust decision | Google implies it may no longer give away Android for free following EU antitrust decision
VIDEO1:0301:03Google will appeal EU's $5 billion fineSquawk Box
Google implied Wednesday that it may no longer be able to offer the Android operating system to device manufacturers for free, following a $5 billion antitrust fine from the European Union.
"So far, the Android business model has meant that we haven't had to charge phone makers for our technology," Google CEO Sundar Punchai said in a statement. "But we are concerned that today’s decision will upset the careful balance that we have struck with Android, and that it sends a troubling signal in favor of proprietary systems over open platforms."
Device makers are able to use and modify the open-source Android operating system on their devices for free.
The E.U. said Wednesday that Google violated antitrust rules by requiring Android device makers to bundle its apps like Chrome and Gmail, which harms competition.
The E.U. fined the Alphabet-owned company $5.05 billion, and threatened additional fines of up to 5 percent of Alphabet's daily global business if it does not end its bundling practices.
Pichai said that some of the apps pre-installed on Android devices generate revenue for the company, but also argued that they all "help ensure the phone ‘just works’, right out of the box." The statement also says that the pre-installed apps are easy to remove and replace with alternatives from outside developers.
However, the E.U. claims that the bundling practice is a particularly big problem because of Android's dominance among mobile operating systems. The ruling says that, excluding China, Android accounts for 95 percent of the market.
"Market dominance is, as such, not illegal under E.U. antitrust rules," the ruling states. "However, dominant companies have a special responsibility not to abuse their powerful market position by restricting competition, either in the market where they are dominant or in separate markets."
Pichai said Google will appeal the decision.
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27a433d994e6513228ed1dc1b6b0cd65 | https://www.cnbc.com/2018/07/18/if-youre-enrolling-in-medicare-dont-miss-this-deadline.html | If you're enrolling in Medicare, don't miss this deadline | If you're enrolling in Medicare, don't miss this deadline
If you're signing up for Medicare and are considering supplemental insurance, be aware that the clock is ticking for you to get guaranteed coverage.
When you first enroll, you get six months to purchase what's known as a Medigap policy — which helps cover the cost of deductibles, co-pays and co-insurance associated with Medicare — without an insurance company nosing through your health history and deciding whether to insure you.
"The 'guaranteed-issue' period is the first six months," said Elizabeth Gavino, founder of Lewin & Gavino in New York and an independent broker and general agent for Medicare plans. "After that, it could be a nightmare."
The ability to pay for health-care needs is one of the most critical issues of retirement.Hero Images | Getty Images
Basically, unless your state allows special exceptions, you must go through medical underwriting after the six-month window. And, depending on your health, that process could cause the Medigap insurer to charge you more or deny coverage altogether.
While Medigap is no cure for the the rising cost of health care, about 13.1 million Medicare beneficiaries were using such policies to reduce their out-of-pocket outlays in 2016, according to the American Association for Medicare Supplement Insurance.
That's about 22.5 percent of the estimated 58.5 million people on Medicare. Keep in mind that Medigap is different from a Medicare Advantage plan. (More on that below.)
If you are considering Medigap, it's worth making sure you understand what you're buying. Beyond knowing the deadline for making a decision, here are some key considerations before you sign on the dotted line.
While a number of companies offer Medigap insurance, they can only offer policies from a list of about 10 standardized plans. Each is simply assigned a letter: A, B, C, D, F, G, K, L, M and N. Some states also offer a high-deductible version of Plan F.
This standardization means that, say, Plan A at one insurance company is the same as Plan A at another. However, not every plan is available in all states.
Also, Medicare recipients under age 65 who are disabled might not have access to Medigap, depending on where they live. Gavino recommends checking with your state's insurance department to find out if a plan is available.
The plans differ on what is covered. For instance, Plan F pays your Medicare deductibles while Plan A does not.
Or, some plans cover 100 percent of your deductibles and co-insurance, while others might only pay a portion of those costs. The Centers for Medicare and Medicaid Services has a chart on its website that shows the differences. You also can use the agency's search tool to find available plans in your ZIP code.
Additionally, Medigap policies can only be coupled only with original Medicare (Part A hospital coverage and Part B outpatient coverage). In other words, if you have a Medicare Advantage Plan (Part C), you cannot purchase a Medigap plan.
Overall, while about a third of Medicare recipients have an Advantage Plan and their ranks have been growing, some people discover that their favorite physician or pharmacy is not part of an Advantage Plan's network. Staying on (or returning to) original Medicare lets them remain with their doctor.
Others, like frequent travelers, want to avoid the limitations that sometimes come with Advantage Plans, such as requirements to visit in-network doctors or pay more if they are out of network.
Regardless of the reasons for remaining on original Medicare, it's important to understand its limitations.
For instance, Medicare has no out-of-pocket maximum. Additionally, Parts A and B come with deductibles and limitations on what services are covered and to what degree.
Part A hospital inpatient deductible and coinsuranceFor 2018, you pay:$1,340 deductible for each benefit periodDays 1-60: $0 coinsurance for each benefit periodDays 61-90: $335 coinsurance per day of each benefit periodDays 91 and beyond: $670 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime)Beyond lifetime reserve days: all costsPart B deductible and coinsurance$183 per year. After your deductible is met, you typically pay 20 percent of the Medicare-approved amount for most doctor services, outpatient therapy and medical equipment.
"If you're sick a lot, or in and out of doctor's offices, you can end up with some big bills," Gavino said.
That's where Medigap policies help. Yet they aren't a cure-all: For instance, Medicare does not cover dental and vision expenses, and Medigap policies do not pick up those costs. Advantage Plans, on the other hand, might offer coverage for both.
Additionally, many Advantage Plans include prescription drug coverage (Part D). If you are on original Medicare — whether you have a Medigap policy or not — you must sign up for a prescription plan unless you meet certain requirements.
Additionally, depending on a combination of factors — the Medigap policy's features, where you live, and sometimes your age — the cost can reach a few hundred dollars a month.
VIDEO1:4401:44How to avoid these common Medicare scamsRetire Well
The most popular Medigap plan (Plan F) cost an average of $159 to $236 for a 65-year-old male in 2016, according to the American Association for Medicare Supplement Insurance.
Your location alone can make that number vary wildy, however. In New York City, the highest cost of a Plan F premium was $444; and in San Jose, California, the lowest cost was $135.
Plans that offer less coverage are generally less expensive.
Where you might see differences between the same plans is in the monthly premiums. For instance, depending on where you live, several insurers could offer Plan F with different premium amounts.
Gavino recommends avoiding insurers that have little history in the marketplace yet offer the cheapest premiums.
"Some people will go for the cheapest option and then end up with a 20 percent to 30 percent increase the next year," she said.
Additionally, Gavino said, it's worth finding out whether the insurer you're considering will let you switch between plans.
Some people will go for the cheapest option and then end up with a 20 percent to 30 percent increase the next year.Elizabeth Gavinofounder of Lewin & Gavino in New York
If your financial situation changes and you want to move to a less expensive policy, there's a chance the company will require you to go through medical underwriting before letting you switch.
For people who end up switching from Advantage Plan back to original Medicare — which they can only do at certain times of the year — it's important to avoid making the move before considering whether Medigap will be part of your plan.
If you will need to undergo medical underwriting and are uncertain whether you'll get coverage, Gavino said you should remain on your Advantage plan until you know for sure.
More from Personal Finance:When end-of-life planning is suddenly a lot closer than you thoughtMega Millions jackpot soars to $422 million. If you win, here's how to say no to sharing itMedicare won't cover all your health care expenses. Here's how to prepare
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492dbbac6f22592c92f70031f3e711f4 | https://www.cnbc.com/2018/07/18/papajohnswendys.html | Wendy's had preliminary deal talks with Papa John's before founder's scandal erupted | Wendy's had preliminary deal talks with Papa John's before founder's scandal erupted
Papa JohnsGetty Images
Wendy's had preliminary merger talks with Papa John's before the company's founder, John Schnatter, stepped down as chairman last week, a source familiar with the situation told CNBC.
The talks cooled after Schnatter's use of a racially charged slur led to his resignation. Schnatter still sits on Papa John's board and has a nearly 30 percent stake in the company.
Shares of the pizza company jumped after the Wall Street Journal first reported news of the talks, and ended the day up 4 percent at $53.60.
The source requested anonymity because the information is confidential. Both Wendy's and Papa John's told CNBC they do not comment on market rumors or speculation. Representatives for Schnatter declined to comment.
The deal talks highlight the opportunity potential acquirers see in improving Papa John's technology and scaling up in a still fragmented pizza chain industry. Still, the public relations fall out that followed Schnatter's resignation is likely to complicate any potential deal.
VIDEO0:3600:36Papa John's reportedly held merger talks with Wendy'sClosing Bell
His resignation as chairman came after he confirmed that he had used the N-word during a May conference call with media agency Laundry Service. Since then, Papa John's has worked to distance itself from Schnatter, prohibiting him from talking to the press, removing him from the pizza chain's advertising materials and revoking his office space at the company's headquarters.
Still, analysts at Stifel recently wrote, "we believe whoever owns the company will need to fully rebrand Papa John's, requiring more than just advertising and packaging changes to alter consumers' perception."
"A critical factor for the company or a potential buyer is determining the level of investment and duration needed to stabilize sales and profitability and return the company onto a growth path," they added.
The pizza chain earlier this week formed a special committee to "take action with respect to all of the company’s relationships and arrangements with John H. Schnatter," sparking takeover speculation.
As for Schnatter, he doubled down this week on claims he made during a television interview Friday. Schnatter alleges Laundry Service had provoked him into using the term and then tried to blackmail Papa John's for $6 million to keep quiet about it.
Laundry Service disputed his comments in an internal memo sent to employees Tuesday, calling his claims "disparaging and outrageous."
Los Angeles-based attorney Patricia Glaser, who's representing Schnatter, said she asked Laundry Service for a recording of the call, if one exists.
“If there’s a tape, let’s hear it,” Glaser told CNBC. “We believe it will vindicate John, and we want to know if it exists."
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190c957f50ef80f57fd819c5109ddbb5 | https://www.cnbc.com/2018/07/18/trump-no-russia-is-not-targeting-the-united-states.html | Trump: 'No,' Russia is not targeting the United States | Trump: 'No,' Russia is not targeting the United States
VIDEO1:0901:09Trump: 'No,' Russia is not targeting the United StatesPolitics
President Donald Trump said Wednesday that Russia is no longer targeting the United States with cyber attacks, a conclusion that is at odds with the one repeatedly asserted by Trump's own intelligence services.
During a meeting of his Cabinet on Wednesday, Trump was asked by a pool reporter whether Russia is still "targeting" the United States.
"No," said the president.
Later, White House press secretary Sarah Huckabee Sanders told reporters that Trump was saying "no" to more questions, and not answering the specific question about Russia. Trump did keep talking to reporters at the Cabinet meeting, however.
He repeated his claim that no other president had been as tough on Russia as he has. "I think President Putin knows that better than anybody, certainly a lot better than the media," Trump said.
Trump NBC tweet
Dan Coats, Trump's director of national intelligence, had a very different assessment about Russian efforts to influence U.S. elections as recently as Monday. In a statement, Coats said: "We have been clear in our assessments of Russian meddling in the 2016 election and their ongoing, pervasive efforts to undermine our democracy."
And on Friday, Coats compared Russia's current cyber efforts to warning signs that emerged before the 9/11 attacks. "The warning lights are blinking red again," Coats said at a Washington, D.C. think tank. "Today, the digital infrastructure that serves this country is literally under attack."
Trump's latest round of comments also came one day after the president touted his administration's aggressive efforts to prevent future Russian meddling.
VIDEO2:0102:01Trump says there's never been a president as tough on RussiaHalftime Report
"My administration has and will continue to move aggressively to repeal any efforts -- and repel -- we will stop it, we will repel it -- any efforts to interfere in our elections," Trump said at a meeting with members of Congress on Tuesday. "We're doing everything in our power to prevent Russian interference in 2018."
If Trump doesn't believe Russia is currently targeting the United States at all, then the reasonable response to what his administration is doing about it would appear to be, nothing.
On Tuesday, Trump's comments about the threat of current and future Russian meddling were largely drowned out by the president's reversal on a basic fact about prior Russian meddling: Whether it happened at all.
In Helsinki, Trump had said he saw no reason why it would have been Russia who interfered, despite the clear and unequivocal conclusion reached by his intelligence agencies that it was, in fact, Russia. The response to his remarks was swift and uniformly negative, even from his staunch supporters.
Under immense pressure from both sides of the aisle, and from within his own administration, Trump on Tuesday invited cameras into what was billed as a closed meeting and read from a prepared statement. Trump said he had full faith in his intelligence agencies, and he accepted their conclusion that there was meddling in the 2016 presidential election. But, he added, "it could be other people also. Lots of people out there."
VIDEO2:0202:02Putin: Can you name one fact that proves election collusion?Squawk on the Street
Trump's press conference Monday with Putin stunned the world, not least because the president appeared to endorse Putin's denial of Russian election meddling over the conclusions reached by Trump's own intelligence agencies that Russia did, in fact, interfere in the 2016 presidential election.
There, Trump described how Dan Coats, his director of national intelligence, "said they think it's Russia," but then Trump said, "I have President Putin. He just said it's not Russia. I will say this: I don't see any reason why it would be."
Trump now claims he misspoke in Helsinki, and that he had, in fact, meant to say he didn't see "any reason why it wouldn't be Russia," indicating that he gave the benefit of the doubt to his own people, and not to Russia's president.
The reversal, which was widely panned by foreign policy experts as too little, too late, did, however help to give cover to congressional Republicans, who were put in a difficult position following Trump's Helsinki comments, effectively asked to defend the indefensible.
Speaking on Wednesday, Sen. Bob Corker (R-Tenn.), a frequent critic of the president, said he was heartened by Trump's claim that he had misspoken. Trump's Europe trip "wasn't perfect," Corker told NBC, and "obviously what happened in Helsinki was especially non-perfect. But I thought yesterday was a step forward and I’m glad it occurred," he said.
VIDEO3:0003:00Here’s everything Trump and Putin said when asked point blank about Russian meddlingDigital Original
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b98f1006cae5279c16180eb4927b470a | https://www.cnbc.com/2018/07/18/trump-wants-putin-to-visit-washington-in-the-fall-white-house-says.html | Trump wants Putin to visit Washington in the fall, White House says | Trump wants Putin to visit Washington in the fall, White House says
VIDEO2:1802:18Trump invites Putin to White House to continue security talkClosing Bell
President Donald Trump has asked that Russian leader Vladimir Putin be invited to Washington this fall, the White House said Thursday.
White House spokeswoman Sarah Huckabee Sanders, in a tweet said that during Trump's visit with Putin in Helsinki, Finland, on Monday, Trump "agreed to ongoing working level dialogue between the two security council staffs" of the United States and Russia.
Trump asked National Security Advisor John Bolton "to invite President Putin to Washington in the fall and those discussions are already underway," Sanders tweeted.
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Trump has been criticized by both Democrats and Republicans since Monday for his performance at a press conference with Putin.
Trump refused during that question-and-answer session to call out Putin for what U.S. intelligence agencies have said was Russian interference with the 2016 presidential campaign through cyberhacking and other means.
Despite that blowback, Trump, in his own tweets earlier Thursday, had said that he "looked forward" to a second sitdown with Putin. Those tweets had not mentioned the locale for that second round of talks.
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President Donald Trump and Russian President Vladimir Putin shake hands as they hold a joint news conference after their meeting in Helsinki, Finland, July 16, 2018.Leonhard Foeger | Reuters
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d6cccd18240d05a76dc1d8cc67bd6192 | https://www.cnbc.com/2018/07/19/amazon-is-hot-on-apples-trail-in-the-race-to-1-trillion.html | Amazon is hot on Apple’s trail in the race to $1 trillion | Amazon is hot on Apple’s trail in the race to $1 trillion
VIDEO2:4602:46As Apple and Amazon race to the world’s first $1 trillion company, experts choose unlikely winnerTrading Nation
And they’re off.
Apple is the longtime favorite to get to a $1 trillion market cap, but dark horse Amazon is quickly gaining speed. As they round the bend, Apple is a nose in front with a market cap of $936 billion, while Amazon raced above $900 billion for the first time ever Wednesday.
Amazon may be in second place, but it has the better odds to cross the finish line first, two market watchers contend.
“I’m going with Amazon here. I think Amazon is firing on all cylinders,” Bill Baruch, president of Blue Line Futures, told CNBC’s “Trading Nation” on Wednesday.
Amazon’s outperformance in its Web Services and Prime business segments has Baruch feeling bullish. Its recent Prime Day, which acts as a de facto sign-up event for subscription-only services, was its biggest ever, according to the company. Amazon said it had more new Prime memberships on Monday than any other day in its history.
“Ultimately this is also more technical for me,” said Baruch. “The path of least resistance is higher. Then, ultimately too, with Apple you have the June highs that that faces.”
Amazon reached a new intraday high Wednesday, its best level stretching all the way back to its IPO in mid-1997. Apple last reached a record on June 7 – it has since pulled back about 2 percent.
“On top of that as well, who can deliver good news first? You’re looking at Amazon delivering earnings next week compared to the week after for Apple,” added Baruch.
Amazon is slated to report earnings on July 26. Apple will release its own earnings on July 31.
As for their balance sheets, Apple comes out ahead, said Boris Schlossberg, managing director of FX strategy at BK Asset Management. But Amazon trades on more than its financials, he added.
“Amazon has a much stronger narrative,” Schlossberg said on Wednesday’s “Trading Nation.” “If their earnings come in strong and everything looks very positive for the quarter going forward in terms of growth, I think Amazon is the one that reaches that target first because investors are actually much more excited about Amazon’s business model.”
Apple would have to reach $203.45 a share to get to $1 trillion, another 7 percent increase from current levels. Amazon would have to climb another 11.8 percent to get to $2,060.89.
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495db1127540be2e1adc09e6c61f197e | https://www.cnbc.com/2018/07/19/chinese-investment-in-israel-technology-is-growing-expert-says.html? | Chinese investment in Israeli tech is growing, and it's 'quite welcome' for some | Chinese investment in Israeli tech is growing, and it's 'quite welcome' for some
VIDEO1:5201:52How Israeli tech could benefit from the US-China trade warSquawk Box Asia
As the trade war between Washington and Beijing rolls on and investments from the mainland come under greater scrutiny in the U.S. and Europe, Chinese companies are increasingly turning elsewhere.
One country poised to gain in investment is Israel.
“There’s been a secular uptrend in Chinese investment in Israel for the past eight to 10 years, but it has been accelerating,” said Steven Schoenfeld, founder and CIO of BlueStar Indexes, a firm that develops Israel-focused indexes and exchange-traded funds.
The vast majority of investment in Israel today still originates from domestic sources as well as the U.S. and Europe, but Schoenfeld said money from China and the broader Asian region has “grown a lot,” with companies from Singapore, South Korea and Japan all “establishing some beachhead.”
Speaking with CNBC’s “Squawk Box,” Schoenfeld said Chinese companies are attracted to Israeli technology for multiple reasons.
Beyond the potential applications of such tech in China, Schoenfeld said many of the Middle Eastern country's companies have global operations and are at the same standards as Silicon Valley — without the sky-high valuations.
Some safeguards have been put in place for foreign investment in sectors such as defense and cybersecurity, where Israel has “some of the same protections” as the U.S., but Schoenfeld said Chinese investment into the country’s tech sector has generally been “quite welcome.”
The scope of Chinese investment in Israel covers “pretty much every major disruptive tech sector,” he said, pointing to industries such as the autonomous and electric vehicles spaces, where the major Chinese auto manufacturers maintain research and development centers.
In other sectors such as the application of artificial intelligence, Schoenfeld said Israel is "one of the leaders in almost every field.”
According to Schoenfeld, the visibility of Chinese investment in Israel has increased as a result of infrastructure investments as part of Beijing's multinational Belt and Road Initiative.
“If you look on a map, Israel is incredibly strategically located for the Belt and Road Initiative,” he said, highlighting investments in infrastructure such as Chinese firms' ongoing construction of a railroad between the cities of Eilad and Ashdod.
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60d5c568af29f7d803b4516080561b74 | https://www.cnbc.com/2018/07/19/consumers-paying-104-billion-in-credit-card-interest-and-fees.html?__source=twitter%7Cmain | Consumers paying $104 billion in credit card interest and fees | Consumers paying $104 billion in credit card interest and fees
The amount of money that U.S. consumers shell out yearly in credit cards fees and interest has passed the $100 billion mark, new research shows.
With credit card debt at more than $1 trillion and interest rates ticking upward, consumers paid nearly $104 billion in those charges during the 12 months that ended March 31, according to data from Magnify Money.
That figure is 11 percent more than the $93.7 billion tallied a year earlier and 39 percent more than the $74.6 recorded in 2013.
Joe Raedle | Getty Images
The company also forecasts that when it takes its yearly measurement after next March 31, the total paid in fees and interest during the preceding 12 months could be more than $110 billion.
That projection factors in four quarter-point increases in a key interest rate set by the Federal Reserve. While it's uncertain exactly what the Fed will do and when, one thing is for sure: Whenever that rate does go up, credit cards typically will follow suit within a day or two.
Already, the Federal Reserve has boosted rates twice this year by a quarter-point each time. That’s on the heels of three quarter-point increases last year and one in each 2015 and 2016. At its most recent meeting, Fed policymakers indicated that two more bumps are likely on the way this year, with gradual increases continuing into 2019.
The rising cost of credit card debt*
2013$74.6 billion2014$76.5 billion2015$78.6 billion2016$84.9 billion2017$93.7 billion2018$103.7 billion
While the current 2 percent is low from a historical standpoint, credit card interest rates run much higher than that federal rate.
The average interest rate on credit cards is close to 17 percent, although some can run much higher, depending on the type of card itself (i.e., a retail store card) and your credit score.
If you are among those consumers buried in plastic debt and are unsure how to dig yourself out, start by getting organized.
“You need to come up with a plan to get out of debt,” said Nick Clements, co-founder of Magnify Money. “It needs to be concrete and it needs to have an end date.”
VIDEO0:4400:44When credit card debt becomes a relationship killerYour Money, Your Future
There’s also another issue you might need to address: the psychological one.
“You have to deal with the reasons why you ended up in debt anyway,” Clements said. “If it’s because of a [spending] mindset, that needs to change.”
Here are some ways to pay down credit card debt.
If your credit score is high enough to qualify for a zero-interest or low-interest balance-transfer offer, consider taking it.
While these deals typically come with a balance-transfer fee, the introductory rate can last anywhere from a few months or a year or more. At the end of the deal, the remaining balance begins accruing interest at the then-current rate.
If you’re the type who will charge up to the limit on every credit card, a zero-percent transfer probably isn’t going to change that.Nick Clementso-founder of Magnify MoneyC
Not only do you avoid paying high interest on the debt, you can potentially pay it down more quickly because all (or most) of your payment will go toward the balance instead of interest.
However, going this route involves some self-discipline: You can’t use any available credit on the new and old cards or you’ll only dig yourself deeper into debt.
“If you’re the type who will charge up to the limit on every credit card, a zero-percent transfer probably isn’t going to change that,” Clements said. “If you’re highly disciplined, though, it can be a great way to manage your debt.”
Depending on your credit score, you might be able to consolidate your credit card debt into a personal loan and pay a lower interest rate by doing so.
Rates on these loans varies widely, ranging from about 4 percent to as much as 36 percent. The better your credit score, the better rate you’ll get. The amount you are borrowing, along with the length of the loan, also will affect the interest rate.
More from Personal Finance:Most Americans would give up social media to erase credit card debtThe best and worst ways to borrow moneyHow you can save upward of $2,000 annually while improving your health
Remember that if the personal loan is part of your plan to get out of debt, you’ll need to destroy the paid-off card. Again, if you simply charge more on it, you’ll end up in a worse financial position.
Additionally, there is no flexibility in repaying the loan.
“The payment is the payment,” Clements said. “So you have to know you’ll be able to consistently afford the terms of the loan.”
There are a couple of approaches that experts recommend to pay off credit card debt.
The first approach involves funneling most of your repayments toward the card with the highest interest rate. In other words, you pay the minimum on the lower-rate cards and put any extra you possibly can toward the debt that's costing you the most in interest.
Once the most expensive debt is paid off, you move on to the card with the next-highest rate.
The other strategy is to work toward paying off the lowest balances first, which can help give you a sense of accomplishment and momentum to continue tackling your debt. However, you might end up paying more in interest if you take this route.
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e76a44ebe8b8c197864be5f21af860b3 | https://www.cnbc.com/2018/07/19/emoji-use-is-way-up-in-push-notifications-leanplum-says.html | Emojis are key to getting consumers to open those pesky marketing messages | Emojis are key to getting consumers to open those pesky marketing messages
Malte Mueller | Getty Images
Marketers seem to have finally found a way to get customers to open up their emails and text notifications: emojis.
Whether using a smiley face with hearts for eyes or a virtual gift box wrapped up, push notices with emojis are opened 254 percent more often than those without emojis, according to a study released on Tuesday, which was World Emoji Day. Emails with emojis are opened 66 percent more frequently than standard emails.
The report, from mobile engagement platform Leanplum, analyzed 300 million mobile messages — emails and push notifications — worldwide for a full year, starting June 1, 2017. Apps also benefit from emojis, decreasing uninstalls by 26 percent.
“When a person sees an emoji in a message, their brain lights up the same way as when they see a human face,” said Joyce Solano, Leanplum's senior vice president of global marketing, in an interview. “Emojis are great for conveying tones, facial expressions and emotions.”
While emoji use has exploded, it still has a way to run. Almost 30 percent of messages have at least one emoji, double the amount from the prior year. Leanplum said that 157 new emojis are on tap for release in the second half of the year.
VIDEO1:4901:49Samsung Galaxy S9 takes AR emojis to the next levelCNBC Reports
The 100 percent, money bag and gay pride emojis are among those that help produce the highest open rates.
“Marketers are becoming savvier about the irresistible draw of emojis,” Solano said. “Big brands are getting involved and they are becoming a staple in popular culture and media.”
But emojis should be not be overused, Solano said. Brands have to employ them sensitively and make sure they're not offending potential customers.
“Being savvy to cultural sensitivities and understanding the layered meanings of the emojis you are using is important,” Solano said. “You should be straightforward in your emoji usage so there is no mystery to what you are trying to say.”
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ea63010b491a1fce19c65fd8d12fa952 | https://www.cnbc.com/2018/07/19/joe-biden-would-be-a-dream-to-run-against-in-2020-trump-says.html | Joe Biden would be a 'dream' to run against in 2020, Trump says | Joe Biden would be a 'dream' to run against in 2020, Trump says
Former VP Joe Biden.Bastiaan Slabbers | NurPhoto | Getty Images
President Donald Trump said he'd "love to" run for re-election in 2020 against President Barack Obama's vice president, Joe Biden.
"I dream, I dream about Biden. That's a dream," Trump said when asked which Democrat he believes he'll face in the next presidential race during a CBS News interview that aired Wednesday.
"Look, Joe Biden ran three times. He never got more than 1 percent and President Obama took him out of the garbage heap, and everybody was shocked that he did," Trump said. "I'd love to have it be Biden."
Trump added, however, that he would be fine running against any of the "group of seven or eight" Democrats and other politicians who might be considering presidential runs — such as Sens. Elizabeth Warren, D-Mass., Bernie Sanders, I-Vt., Kamala Harris, D-Calif., and Kirsten Gillibrand, D-N.Y.
Biden's nonprofit, the Biden Foundation, did not immediately respond to CNBC's request for comment.
Trump's confidence toward his potential challengers comes amid a cycle of harsh bipartisan criticism of his performance at a summit Monday with Russian President Vladimir Putin in Helsinki, Finland.
Following a closed-door, one-on-one meeting with Putin, Trump spoke at a joint press conference with the Russian leader. During that briefing, he refused to say unequivocally that he believed U.S. intelligence reports stating that Russia interfered in the 2016 election. He appeared to put more trust in Putin, whose denial of any meddling he called "extremely strong and powerful."
He also said "I don’t see any reason why it would be" Russia that hacked Democrats during the 2016 campaign, and suggested that the U.S. and Russia were both responsible for the nations' strained relationship.
In a statement following the summit, Biden joined the chorus of bipartisan criticism against Trump, saying on Monday that the president "insulted our friends and made common cause with our adversaries."
Biden's statement continued: "He embraced our number one adversary, blamed America rather than Russian aggression for the deterioration in our bilateral relations, trashed his own justice department, and put Putin’s word above that of our own intelligence community whose leaders he appointed."
On Tuesday, Trump walked back one of his remarks, saying he misspoke and meant to say he saw no reason "why it wouldn't be Russia."
"Sort of a double negative," he said.
In the CBS interview, Trump said it was "true" that Russia meddled in the election and said he would hold Putin responsible for that interference "because he's in charge of the country."
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4b6a69bdf719a80687b88dcd1ca22dbd | https://www.cnbc.com/2018/07/19/krispy-kreme-is-nearing-a-deal-to-acquire-insomnia-cookies.html | JAB-backed Krispy Kreme is nearing a deal to acquire Insomnia Cookies | JAB-backed Krispy Kreme is nearing a deal to acquire Insomnia Cookies
VIDEO0:5000:50Krispy Kreme nearing deal to acquire Insomnia CookiesNews Videos
Krispy Kreme Doughnut is nearing a deal to acquire Insomnia Cookies in a move that would help the coffee and doughnut chain move beyond the glazed treats for which it is known, sources familiar with the situation tell CNBC.
The deal would be one further — albeit small — building block in the coffee and restaurant empire that European investment firm JAB Holding has been putting together. JAB, which acquired Krispy Kreme in 2016 for $1.35 billion, also owns Keurig Dr Pepper, Peet's Coffee & Tea and Panera Bread Co.
The deal, which values Insomnia Cookies at less than $500 million, could be announced within the next few weeks, the sources said.
The sources, who cautioned a deal could still fall apart, requested anonymity because the information is confidential. Krispy Kreme and Insomina weren't immediately available to comment.
Insomnia Cookies was founded in 2003 by University of Pennsylvania student Seth Berkowitz. Its stores, which stay open and deliver until 3:00 a.m., are often situated near college campuses, helping it to cater to late night revelers. It has more than 135 locations and sells cookies, brownies and cold milk.
Winston-Salem, North Carolina-based Krispy Kreme is known best for its signature fresh and hot glazed doughnuts that roll off its conveyor belts. It has nearly 1,400 retail shops in 32 countries.
Buying Insomnia Cookies would help Krispy Kreme reach more diners than its doughnut loyalists, as well as provide new delivery infrastructure.
There also could be opportunities to bundle the two products together, for example selling a day-old doughnut at a discount alongside an Insomnia Cookie.
Krispy Kreme's main rival, Dunkin' Donuts, has experimented with new menu items over the years in efforts bring in customers at different times of the day.
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6ae47ad37fcf29207c5c0bd831e4451b | https://www.cnbc.com/2018/07/19/tencent-to-push-wechat-pay-in-us-despite-trade-war-with-china.html | Chinese tech giant Tencent plans to expand its US payments footprint — despite ongoing trade war | Chinese tech giant Tencent plans to expand its US payments footprint — despite ongoing trade war
VIDEO2:3602:36Tencent's WeChat Pay on its US ambitionsSquawk Box Asia
Tencent will step up its efforts to expand its payment service WeChat Pay to the U.S., an executive at the Chinese technology giant told CNBC, hinting at more merchants coming on board later this year.
WeChat Pay allows users to show stores a barcode on their smartphone via the Tencent-owned WeChat messaging app. The shop scans the barcode, allowing a user to pay for an item or service with a Chinese bank account. WeChat has over 1 billion users and around 800 million of them use the WeChat Pay function.
Tencent has focused on expanding the payments service abroad, but it has stopped short of trying to create a local version of WeChat for other countries. Instead, the company has been focused on signing up merchants in many countries to accept WeChat Pay so Chinese tourists can use the payments platform abroad.
And Tencent is gearing up to announce that many more stores in the U.S. will accept WeChat Pay later this year.
"(The) U.S. is also a market we are focused on now ... after July you will see a lot of merchants will accept WeChat Pay in U.S.," Yin Jie, director of cross-border operation at WeChat Pay, told CNBC in an interview that aired on TV on Thursday.
"Actually now ... in the airport and in some duty free shops, they already accept WeChat Pay … because (the) U.S. is a really big country and has a lot of merchants. We need to do it step by step," she said.
Citcon, a mobile payments platform based in the United States, last year announced that it teamed with WeChat to bring WeChat Pay to North America. Tencent emphasized to CNBC this week that it does not have an exclusive partnership with any company.
WeChat Pay on mobile phone in action.Zhang Peng | LightRocket |Getty Images
Jie said the company is focused on signing up merchants that are popular with Chinese visitors.
"The first step we will choose some merchants which Chinese tourists like, just like some outlets and duty free, some famous restaurants, and maybe the next step we will try and find some smaller merchants, just like a supermarket, some convenience stores, some transportation (services) like taxis. We will choose the big merchants that Chinese tourists like, then, when it has showcased, we will try to expand it to small merchants," Jie said.
Tencent's increased focus on the U.S. market comes at a time when Chinese technology companies are getting caught in the crossfire of the U.S.-China trade war. Telecommunications firm ZTE, for example, was banned from using U.S. suppliers. Although that ban has now been lifted by the U.S. government, the company suffered some damaged.
WeChat is not a hardware product, but current U.S.-China tensions could potentially make stateside stores wary of accepting the platform at such a sensitive political time. Jie, for her part, said she was not worried because WeChat Pay offers a way for brands to tap lucrative Chinese tourists.
"WeChat Pay is just a payments product, so if the Chinese tourist wants to use it and the merchant wants to accept that, I think we have a market," Jie said.
And it's clear why Tencent would want to focus on the U.S. market. The United States was the most popular destination for Chinese tourists outside of Asia in 2017, according to a survey of just over 2,600 respondents published earlier this year by Nielsen. On average in 2017, Chinese tourists spent $4,462 per person while on vacation in the U.S., more than they did in any other country or region they visited, the study showed.
But there are still a few issues. Just 28 percent of payments made on holiday by Chinese tourists were done on a mobile platform, the Nielsen survey showed. Many Chinese tourists are not aware that they can use their mobile payments apps outside of China and many merchants abroad are still not accepting it.
VIDEO3:2103:21An inside look at Chinese tech giant Tencent's vertical campusCNBC Reports
Tencent's expansion drive with the WeChat messaging app has had a checkered history. In 2013, it ran high profile campaigns in European nations as well as other big markets like Brazil with soccer star Lionel Messi. But it has found it hard to dislodge the dominance of Facebook-owned services WhatsApp and Messenger. Since then it has focused on Chinese tourists going abroad, particular with the WeChat Pay feature. Last year, the payments platform was launched in Europe.
But Tencent's attempt to capture Chinese tourists is not without its own challenges. It is up against Alipay, the payments service owned by Ant Financial, an affiliate of Alibaba. Alipay launched in Europe in 2015 and has since expanded to other destinations like South Africa.
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64f6297744244f3169f4ad4a5e70a892 | https://www.cnbc.com/2018/07/19/trump-rejects-putins-incredible-offer-to-help-russia-interrogate-americans.html | After three days, Trump rejects Putin's 'incredible offer' to help Russia interrogate Americans | After three days, Trump rejects Putin's 'incredible offer' to help Russia interrogate Americans
President Donald Trump and Russia's President Vladimir Putin attend a joint press conference after a meeting at the Presidential Palace in Helsinki, on July 16, 2018. Brendan Smialowski | AFP | Getty Images
The White House on Thursday said President Donald Trump would not accept an "incredible offer" from Russian President Vladimir Putin.
During the Helsinki summit between the two leaders on Monday, Putin offered to permit U.S. investigators to interrogate Russians charged with hacking during the 2016 election, in exchange for the United States agreeing to allow the Kremlin to interrogate U.S. citizens about unspecified crimes.
“It is a proposal that was made in sincerity by President Putin, but President Trump disagrees with it," White House Press Secretary Sarah Sanders said in a statement Thursday. "Hopefully President Putin will have the 12 identified Russians come to the United States to prove their innocence or guilt."
The statement, coming three days after Trump's initial comment, was the latest example of back tracking the White House press office has undertaken since Trump's stunning joint press conference with Putin on Monday. There Trump called Putin's proposal an "incredible offer." Trump also signaled that he believed Putin's denial that Russia meddled in the 2016 presidential election and cast doubt on his own intelligence services' assessment that Russia did, in fact, interfere.
"I have great confidence in my intelligence people, but I will tell you that President Putin was extremely strong and powerful in his denial today, and what he did is an incredible offer," Trump said in Helsinki, Finland. "He offered to have the people working on the case come [to Russia] and work with their investigators with respect to the 12 people. I think that’s an incredible offer."
Initially, that statement did not get the kind of bipartisan backlash that Trump's comments about his intelligence services received. But on Wednesday when asked about it, rather than dismiss Putin's offer out of hand, Sanders said the president would "work with his team" to assess it.
A wide range of observers were outraged that the American president would even consider permitting Russia to question U.S. officials, including former U.S. ambassador to Russia Michael McFaul, for alleged crimes relating to tax evasion by British financier Bill Browder.
The White House announced Trump’s rejection just before the Senate's unanimous vote to approve a resolution telling the president not to accept Putin’s request.
"He said it was an interesting idea. He didn't commit with anything," said Sanders. "He wants to work with his team and determine if there's any validity that would be helpful to the process. But again, we've committed to nothing. And it was an idea that they threw out."
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0ef67cb0a2d9e66945fdc01813249830 | https://www.cnbc.com/2018/07/19/two-strategies-to-simplify-your-taxes-in-retirement.html | Two strategies to simplify your taxes in retirement | Two strategies to simplify your taxes in retirement
WHL | Getty Images
You may have stopped punching the clock at work, but Uncle Sam hasn’t: Retirees still need to pay income taxes.
Once older Americans have left the workplace, they may be generating income from a variety of sources, including Social Security, pension payments and withdrawals from various retirement accounts.
Instead of having a set amount of federal taxes withheld from their pay — the way it was when they were working — they now have to write a check for estimated amounts to the IRS four times a year
“With estimated tax payments, there’s the issue of making sure they actually paid the tax,” said Harjit Virk, a CPA and senior associate with Getzel Schiff & Pesce LLP in Woodbury, New York
“Sometimes you have to send reminders when the payments are due,” he said.
Here’s how to simplify your tax payments so that you can get back to enjoying your retirement.
H. Armstrong Roberts/ClassicStock | Getty Images
You may be familiar with the new withholding tables from the IRS. These, along with Form W-4, guide employers as to how much tax ought to be pulled from your paycheck.
Pinning the amount you need to pay in tax is an art: If you withhold too much, you end up with an outsized refund next April. Pay too little, and you could owe the IRS next spring.
The benefit for you is the automation of those tax payments and knowing you’ll make them faithfully.
Be aware that if you're single and your adjusted gross income, plus non-taxable interest and half of your annual Social Security benefits exceed $34,000 (or $44,000 for married joint filers), up to 85 percent of your Social Security benefits may be taxed.
Rather than paying the amount owed every quarter, filers can use Form W-4V to withhold a flat rate from each check: 7 percent, 10, percent, 12 percent or 22 percent.
For long-term investors, daily headlines are distractions.Westend61 / Josep Rovirosa | Getty Images
Retirees receiving a pension payment or an annuity can opt to have taxes withheld from their income, using Form W-4P and electing the number of allowances they would like to claim.
The more allowances you take, the less money you’ll have withheld.
Work with your accountant to tailor your tax load: While your withholding forms may address your federal income taxes, some states don’t assess levies on Social Security or certain pension benefits.
“Get an idea of what you need to have paid in by the end of the year in order to avoid the penalties,” said Tim Steffen, director of advanced planning at Robert W. Baird & Co. in Milwaukee.
“You’ll need a projection, an idea of what the taxes are this year,” he said. “For someone who’s a new retiree, it’s hard to figure that out without getting help on the calculation.”
Sam Edwards | Getty Images
If you’re over 70½, you’ll have to start taking required minimum distributions (RMD) from your qualified retirement accounts. Those who don’t actually need the cash have a variety of options as to how best use the payment.
Here’s a strategy: Instead of making estimated quarterly tax payments, use all or some of the RMD at the end of the year to pay the bill.
In this case, you would notify the custodian holding your retirement savings that you would like to withhold taxes from the RMD. This way, the IRS treats it as though you’ve been making the payments all year.
Be careful: If you were to deposit the RMD into your bank account and then write a check for the year’s estimated taxes, you could face penalties for all the quarters you missed.
“If you make the big estimated payment from a check, it’s treated as though you just paid it that day,” said Jeffrey Levine, CPA/certified financial planner and CEO of BluePrint Wealth Alliance in Garden City, New York.
The other major flub to avoid: Forgetting that the RMD itself is a taxable payment.
“If you project that the liability is $10,000 and you take an RMD and withhold that amount, you’re going to owe more for the distribution itself,” said Virk of Getzel Schiff & Pesce.
“People forget to account that the RMD is taxable and must be included in the tax calculations,” he said.
More from Personal Finance Your family members are threatening your inheritance When end-of-life planning is suddenly closer than you thought Believing these Social Security myths could make you poorer in retirement
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