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2182ab367ae8dde97991ef658ee242e4 | https://www.cnbc.com/2015/08/14/scenes-of-life-in-havana-as-the-us-returns.html | Scenes of life in Havana as the US returns | Scenes of life in Havana as the US returns
A man walks down a street in Havana, Cuba.Justin Solomon | CNBC
It's been 54 years since Old Glory was raised at the U.S. Embassy in Havana. At the beginning of a new era in U.S.-Cuban relations, CNBC captured scenes of Cuban life at this historic moment.
Old American cars fill the streets of Havana, Cuba.Justin Solomon | CNBC
Visiting Cuba is like stepping back to an era when hulking American cars ruled the roads. Today, many of these vintage cars are kept together with duct tape, wire and jury-rigged parts. But they're still carrying Cubans and tourists.
Cubans using their mobile devices in Havana, Cuba.Justin Solomon | CNBC
Here young Cubans line a bench in Havana, using their mobile devices. Internet and Wi-Fi access is improving as the country begins easing restrictions on its use.
In Cuba, baseball has been a central part of Cuban life. Young kids playing stick ball in the streets of Havana, Cuba.Justin Solomon | CNBC
Baseball is a way of life for many Cubans. Here, kids play in the streets of Havana. Even Fidel Castro played ball.
A mother pushes her child past an old American made car in Havana, Cuba.Justin Solomon | CNBC
Want to buy a Buick? This one is for sale.
A woman looks down from her balcony on the streets of Havana, Cuba.Justin Solomon | CNBC
In Havana, an elderly woman peers over her balcony on the streets below.
Cubans gather in the streets of Havana, Cuba.Justin Solomon | CNBC
Families and friends gather and socialize.
A portrait of man in a doorway in Havana, Cuba.Justin Solomon | CNBC
A portrait of an elderly man in a doorway in Havana.
An old American car is parked in Havana, Cuba.Justin Solomon | CNBC
This is not your father's Oldsmobile, but it might have been your grandfather's.
A fisherman in Havana, Cuba.Justin Solomon | CNBC
A silhouette of a fisherman as the sunsets over Havana's Malecon esplanade.
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72bf906d20da5c1b9212fa133bb9e579 | https://www.cnbc.com/2015/08/14/shake-shack-options-set-for-market-debut-on-friday.html | Shake Shack options set for market debut on Friday | Shake Shack options set for market debut on Friday
Options contracts on shares of U.S. burger chain Shake Shack will begin trading on Friday for the first time since the company's initial public offering early this year.
Shake Shack's shares, which fell precipitously on Thursday, have been quite volatile since their market debut in January, trading between $38.64 and $96.75. That should help boost demand for its options, strategists said.
Read More Shake Shack jumps 10% after topping estimates
"It will probably see some interest due to the volatility and the new listing," said Fred Ruffy, options strategist at WhatsTrading.com.
A Shake Shack restaurant in New York.Scott Mlyn | CNBC
On Thursday, CBOE Holdings and Nasdaq OMX Group said they will list options on the company on Friday.
Other U.S. options exchanges, including the International Securities Exchange Holdings' ISE and ISE Gemini, are expected to list the options soon.
The listings will allow traders to start using the contracts to place bets on where they expect the shares to trade in the future.
But given that trading volume of the stock has averaged about a million shares a day—which equates to about 10,000 options contracts—there might not be a great deal of volume, he said.
Read More No one on Wall Street likes Shake Shack
The shares started trading on the New York Stock Exchange at $47 and nearly doubled to a high of $96.75 by May 22. Since then, however they have fallen significantly.
The shares ended regular trading on Thursday down 15.7 percent at $54.61, after the company said it had priced a 4 million-share offering at $60 per share, well below a $64.79 closing price on Wednesday.
"There is plenty of volatility and action, which usually attracts options traders," said J.J. Kinahan, chief strategist at TD Ameritrade in Chicago.
VIDEO3:5003:50Shake Shack stock too expensive: ProFast Money
High-profile IPOs usually generate a lot of demand for options on the new stocks but exchanges have to wait until minimum thresholds for the number of freely tradable shares are met.
Until now, Shake Shack did not meet the minimum float requirement of at least 7 million shares, but the expiration of a post-IPO lockup at the end of July and the secondary offering helped boost the company's float.
Shake Shack, known for its indulgent hormone- and antibiotic-free burgers and sides, on Monday reported stronger-than-expected quarterly profit and sales.
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22f7437a1fdc4d7dcd42bc402e5982c2 | https://www.cnbc.com/2015/08/17/cramer-jc-penney-is-about-to-smoke-competition.html | VIDEO6:4406:44Cramer: JC Penney will kill competitionMad Money with Jim Cramer
Just as Jim Cramer thought J.C. Penney was left for dead with no hope, it makes a comeback. Yes, that's right—J.C. Penney is back. And the new J.C. Penney has some spunk to it, which leads him to believe that it will fight off the competition.
"Out of nowhere, J.C. Penney's got its groove back; I think it is roiling all the other merchants out there," the "Mad Money" host said. (Tweet This)
In Cramer's opinion, its new CEO, Marvin Ellison, is taking the company to a new level with his humility and competitiveness. It is almost as if he is aware that is goal is not just to enter the retail playoffs but to be the champion. It is exactly this type of lofty goal setting that has been sorely missing for a long time.
The CEO has backed up his claims with 4 percent comparable-store sales and plans to get them to 5 percent. Cramer finds this amazing for the old horse J.C. Penney, considering the damage that was done by its previous CEO Ron Johnson.
"He almost destroyed J.C. Penney, consistently taking the same-store sales down to the high negative 20s, an extraordinary feat. I mean, you almost have to actively drive customers away from the stores with the threat of physical violence to repeatedly deliver such terrible numbers," Cramer said.
Getty Images
To Cramer, J.C. Penney's success all came down to expectations. Even before Johnson's reign of terror, the company did not aspire to be the best. It only aspired to be good enough just to keep the 87 million customers it had happy. That only meant a lot of promotions around the holidays and a dedicated staff that was paid slightly more than the minimum wage.
However, Ellison speaks about J.C. Penney as being a world class retailer, and he has backed it up with evidence of the people he has hired who are dedicated to making Penney a real ecommerce player. That includes Mike Amend, former vice president of online and mobile from and Mike Robbins, former senior vice president of global supply chain for Target.
These hires show that Ellison is committed to improving the company's omnichannel presence, and Cramer thinks the bar is low enough that he could beat it, because these days everyone is struggling with the omnichannel challenge.
And out of all of the companies that have made large efforts to improve its omnichannel business such as Nordstrom and Liberty's QVC, Cramer's got his money on J.C. Penney because he expected so little from it.
What Cramer always liked about J.C. Penney was its heavy emphasis on private-label brands, and it plans to continue with that. Cramer likes private labeling because it is easy to discount, and he feels confident that Ellison plans to use execute on that discount.
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So how much damage can a revitalized J.C. Penney cause to the retail industry?
"I think Penney is a lot like Kohl's, and you can see that Kohl's sure couldn't deliver this quarter. It can put the hurt on Macy's, too, as it will be perceived as being underpriced versus Macy's," Cramer said. (Tweet This)
As Ellison continues to re-energize each store, Cramer said that stores will have no choice but to take notice. So, it looks like just as Cramer considered J.C. Penney in the dead and gone category with Sears, it has found a way to wake up from the dead.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
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42cf911cd12bdca012510fe956f2e2f8 | https://www.cnbc.com/2015/08/17/former-top-goldman-sachs-exec-robert-kaplan-named-president-of-dallas-fed.html | Ex-Goldman exec Robert Kaplan named Dallas Fed chief | Ex-Goldman exec Robert Kaplan named Dallas Fed chief
The Federal Reserve Bank of Dallas on Monday named Robert Steven Kaplan its president and chief executive, effective Sept. 8.
Kaplan, 58, a professor of management practice and a senior associate dean at Harvard Business School, takes over for Richard Fisher, who retired in March.
Robert Kaplan, president of the Federal Reserve Bank of DallasSource: Federal Reserve Bank of Dallas
Before joining Harvard in 2006, Kaplan was a vice chairman at Goldman Sachs, responsible for the firm's investment banking and investment management units.
"He has had distinguished careers in business and academia, and has the right combination of leadership skills, business experience and public-service mindset. Rob is committed to improving the economy for all Americans," Dallas Fed board chairwoman Renu Khator said in a statement.
Read MoreCan the Fed justify an imminent rate hike?
Kaplan will step down from board posts at State Street, Harvard Management Company and executive search firm Heidrick & Struggles, among other positions. He will continue as co-chairman of the nonprofit Project ALS and the Draper Richards Kaplan Foundation, as well as remain on the board of Harvard Medical School.
"I look forward to working with the superb professionals of this bank and throughout the Federal Reserve system in their vital service to the district and the country," Kaplan said in a statement.
The U.S. central bank's Dallas branch will not be a voting member on its policy committee again until 2017.
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6d7c71b94e2efb837bba6fb1b2c4d61d | https://www.cnbc.com/2015/08/18/buzzfeed-looks-to-go-viral-in-japanese-with-yahoo-pact.html | Turning Japanese: BuzzFeed to launch site in Japan | Turning Japanese: BuzzFeed to launch site in Japan
Andrew Harrer | Bloomberg | Getty Images
BuzzFeed is launching a joint venture with Yahoo Japan, the country's top internet portal, to create a Japanese-language version of the viral news and entertainment site.
The partnership structure marks a departure for BuzzFeed, which wholly owns its operations in other countries including the UK, Germany, Brazil and India. The companies did not disclose how much they are investing in the venture, but BuzzFeed will hold a 51 percent stake and Yahoo Japan will own the remaining 49 percent.
BuzzFeed's international push in the past two years has come as its content, which is widely distributed over social media including Facebook, reaches an increasingly global audience. Some 45 percent of its website's 200-million monthly unique visitors now come from outside the US, said Greg Coleman, BuzzFeed president.
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BuzzFeed's side of the venture will be financed from its existing funds, including the $50 million it raised last year from Andreesen Horowitz, the Silicon Valley venture firm, which was partly earmarked for international expansion. Comcast's NBCUniversal is expected soon to conclude a $200 million investment in BuzzFeed at a valuation of $1.5 billion, according to a person familiar with the situation.
Teaming up with Yahoo Japan — itself a joint venture between Yahoo and SoftBank — will allow BuzzFeed to tap the group's large audience of 88 percent of Japanese internet users and its relationships with advertisers.
"We will have the opportunity to get the massive traffic from Yahoo Japan to help accelerate the growth of our site and we also will be getting access to the largest [digital media] sales team in Japan," Mr Coleman said.
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BuzzFeed derives its revenue from creating sponsored content for brands that look like its popular gif-illustrated stories and lists. The company passed $100 million in sales in 2014, and recent financial documents obtained by Gawker, the US gossip website, show BuzzFeed first reached profitability in 2013 and booked $2.7 million in net profit in the first six months of last year.
Digital ad spending in Japan is projected to grow 10 percent to $9.7 billion this year, out of a total $37 billion advertising market, according to eMarketer, the researcher. But Japan is in the "very early stages of native advertising", Mr Coleman said. "In many ways we'll be the first to market. That's terrific but it also means you have to break the ice with a lot of marketers."
In previous international expansions BuzzFeed has followed a consistent formula, starting with a small editorial staff that creates the fluffy viral content for which it is well known, then moving into harder news coverage and native advertising sales. In Japan, it will start by hiring editors and a chief executive to run the joint venture before courting marketers, but the focus will be on news from the start, Mr Coleman said.
Read More
BuzzFeed has been investing heaving in its editorial side, with high-profile hires including Janine Gibson, the former deputy editor of the Guardian. Its editorial budget ballooned to $10.5 million in the first half of 2014, compared with $11.7 million in all of 2013, according to the Gawker documents.
The Japanese venture will also import BuzzFeed's strategy of social sharing to give its content a reach far beyond its own website. Its existing relationships with Facebook and Twitter, both of which have large followings in Japan, will be a benefit but the Japanese operation will also need to make inroads with local operators.
"This is why the traffic we'll get from Yahoo Japan will be so important to prime the pump," Mr Coleman said.
BuzzFeed and Yahoo Japan began talks a year ago, around the time Mr Coleman joined the US company. The executive has a history with the Japanese group in his previous roles as president of Criteo, a digital advertising company that also partners with Yahoo Japan, and as Yahoo's executive vice-president of global sales.
BuzzFeed will control the joint venture's board with representation from Yahoo Japan. Holding majority ownership will make it easier for BuzzFeed to consolidate Japanese earnings in the event the US company decides to go public, Mr Coleman said.
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f1134f6914d8b11727dad9e425484100 | https://www.cnbc.com/2015/08/18/cramer-is-skyworks-solutions-depending-on-china.html | VIDEO8:3708:37Cramer: Is Skyworks depending on China? Mad Money with Jim Cramer
Semiconductor stocks have taken a beating in the past few months, courtesy over worries of a slowdown in China cutting into the demand for technological gadgets. Jim Cramer decided to circle back to the group to see if it is safe to invest in high quality semiconductor stocks.
Skyworks Solutions is a maker of high-performance radio frequency and analog chips for smartphones, tablets, cars, GPS, broadband and wireless networking. It also contributes to various industrial, medical and military applications.
It has been speculated that Skyworks gets as much as a third of its total sales from Apple, though Apple discourages any discussion of its relationship with suppliers, so that figure is unconfirmed. Still, as Apple has been slammed in recent months over weakening iPhone demand in China, Skyworks has been dragged down along with it.
Now that Skyworks is down more than 22 percent from its June highs, has it finally become safe to buy again? To find out, Cramer spoke with Skyworks Solutions Chairman and CEO David Aldrich.
David Aldrich, CEO of Skyworks SolutionsScott Mlyn | CNBC
Cramer speculated that many investors were scared away from the stock on Aug. 6 when Goldman Sachs reported that Skyworks Solutions had an 83 percent sales exposure to China.
Aldrich confirmed that the figure was false, stating, "I can only speculate that maybe they are picking up all contract manufacturers, because we have products that are built in China but they are not consumed within China."
The CEO stated that Skyworks derives approximately 20 to 25 percent of its revenue from China. Aldrich also stated that in 2014, there were under 100 million LTE phones shipped to China. This year, that rate has increased dramatically to a quarter of a billion.
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"So, we have high dollar content, few competitors, higher margins in a segment of the market that is growing quite strong," Aldrich said.
The one area that Skyworks has seen a dramatic shift in has been its original equipment manufacturer (OEM) shares, meaning, its customers. However, Aldrich said that what makes Skyworks unique is that it is quite agnostic from a brand standpoint.
"So, one is up, one is down, we are typically okay and that has been the history of our company. We haven't been whipsawed as much by changes in customer or brand loyalty within the segment," he said.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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53dc55b2279c91912f46bde9b1a6be57 | https://www.cnbc.com/2015/08/18/us-lets-shell-drill-for-oil-off-alaska.html | US lets Shell drill for oil off Alaska | US lets Shell drill for oil off Alaska
The federal government on Monday gave Royal Dutch Shell the final permit it needs to drill for oil in the Arctic Ocean off Alaska's northwest coast for the first time in more than two decades.
The Bureau of Safety and Environmental Enforcement announced that it approved the permit to drill below the ocean floor after the oil giant brought in a required piece of equipment to stop a possible well blowout.
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The agency previously allowed Shell to begin drilling only the top sections of two wells in the Chukchi Sea because the key equipment, called a capping stack, was stuck on a vessel that needed repair in Portland, Oregon.
Because the vessel arrived last week, Shell is free to drill into oil-bearing rock, estimated at 8,000 feet below the ocean floor, for the first time since its last exploratory well was drilled in 1991.
MARTIN BERNETTI | AFP| Getty Images
"Activities conducted offshore Alaska are being held to the highest safety, environmental protection, and emergency response standards," agency Director Brian Salerno said in a statement Monday. "We will continue to monitor their work around the clock to ensure the utmost safety and environmental stewardship."
The Polar Pioneer, a semi-submersible drilling unit that Shell leases from Transocean Ltd., began work July 30 at Shell's Burger J site. It completed what's called a mud-line cellar, a 20-by-40-foot hole at the top of the well that will hold a blowout preventer, and continued drilling into rock above the petroleum-bearing zone.
Shell spokesman Curtis Smith said it's possible Shell will complete a well this summer. But he declined to say how deep the Polar Pioneer has drilled or exactly when drill bits might enter the petroleum-bearing zone.
Read MoreThis strange event could send crude soaring
"It's information that we consider proprietary and therefore not something we would release," Smith said. He added safe operations will determine progress.
Environmental groups oppose Arctic offshore drilling, saying industrial activity will harm polar bears, Pacific walrus, ice seals and threatened whales already vulnerable from climate warming and shrinking summer sea ice. They say oil companies have not demonstrated that they can clean up a spill in water choked by ice.
Sierra Club executive director Michael Brune said in a statement that President Obama's decision to grant Shell the final drilling permits goes against science, the will of the people and common sense.
VIDEO1:4101:41Oil higher from here?
"Granting Shell the permit to drill in the Arctic was the wrong decision, and this fight is far from over," he said. "The people will continue to call on President Obama to protect the Arctic and our environment."
The U.S. Geological Survey estimates that U.S. Arctic waters hold 26 billion barrels of recoverable oil, and Shell is eager to explore in a basin that company officials say could be a game-changer for domestic production.
Shell bid $2.1 billion on Chukchi Sea leases in 2008 and has spent upward of $7 billion on exploration there and in the Beaufort Sea off Alaska's north coast.
Shell hopes to drill two exploration wells during the short 2015 open-water season. It has until late September, when all work must stop. It has two drill vessels and about 28 support vessels in the Chukchi Sea.
The permit to drill deep into the ocean hinged on the arrival of a capping stack, which is a roughly 30-foot device that can be lowered over a wellhead to act like a spigot to stop a blowout. The government requires Shell to have the device ready to use within 24 hours of a blowout.
Read More
The capping stack sits on a 380-foot icebreaker that suffered hull damage July 3 as it left Dutch Harbor, a port in the Aleutian Islands. The vessel named the Fennica was repaired in Portland, Oregon, and briefly delayed from leaving July 30 by Greenpeace protesters in climbing gear hanging from a bridge over the Willamette River.
The Fennica reached the drill site 70 miles off Alaska's northwest coast on Aug. 11.
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337450ad3f41c1adbc86b343c7d2daab | https://www.cnbc.com/2015/08/19/7-celebrities-who-hold-their-own-as-inventing-geniuses.html | 7 celebrities who hold their own as inventing geniuses | 7 celebrities who hold their own as inventing geniuses
Michael Jackson performing in 2002.Micahel Caulfield | Getty Images
Art can lead to amazing inventions. Think Leonardo da Vinci drawing technologies to fly and reach the ocean depths long before the plane and submarine existed.
"It's not just a very narrow scientific look at things. It's really where we live our everyday lives ... and for an artist or performer, that can be a very unique place," said Rini Paiva, executive director of the National Inventors Hall of Fame.
Les Paul started playing at local drive-in restaurants as a teenager but realized that if more people could hear his guitar, he'd get more tips. "[He] started shoving socks and rags in his acoustic guitar," said Alaina Rutledge, director of educational programs for Camp Invention. Soon the electric guitar would be born.
Here are seven celebrity inventors whose creativity resulted in ingenious patents. Most have not become billion-dollar game-changers, but one did, in fact, help win World War II and develop an idea that led to the Wi-Fi era.
—Posted 19 August 2015By Lauren Flick, producer, CNBC.com
Getty Images | US Patent Office
Known by millions of fans as the sexy feline felon Catwoman on the hit '60s TV series "Batman," Julie Newmar held her own against the dynamic duo—and ultimately held a patent on skintight leggings.
Newmar began by modifying her own curvaceous costume. Then, in the '70s, she noticed everyone was wearing pantyhose, which compressed the midsection. Newmar designed a product that would help all women better display their, shall we say, assets. In 1974 she patented the "cheeky derriere."
"The present invention provides pantyhose of a semi-elastic fabric, which enhance the natural shape of a wearer's derriere, giving it cheeky relief rather than boardlike flatness," the patent stated. A better explanation is in a 1977 interview with People magazine. She said the purpose of her invention was to "make your derriere look like an apple instead of a ham sandwich."
US Patent Office | Getty Images
Steve McQueen also often had his own backside on his mind, but for reasons of comfort. On a motorcycle or in a car, he was an action star always on the move. So it makes sense that McQueen's invention was for a set of wheels—specifically, a Ford Mustang. In 1970, McQueen was awarded a patent for his design of bucket seats used in the 1968 movie "Bullitt."
McQueen found the original seats for the film incredibly uncomfortable and "designed an alternative which followed the contours of the human back," according to the book "Origin of Everyday Things."
In an interview with Sports Illustrated in August 1966, McQueen said, "To me there are cars, and then there is transportation. I don't have a lot of interest in cars that won't go fast and stop well and corner a little. I'd rather sink my fanny into a bucket seat than park it on a bench."
Getty Images | US Patent Office
When you think Jim Henson, you think Kermit the Frog, "Sesame Street" or "The Muppet Show," but do you ever think of the Swedish Chef making instant coffee? Or Animal drinking too much of it? From 1957 to 1961, Henson created 179 commercials for Wilkins Coffee and enlisted newly patented puppets to persuade America to perk up without a percolator.
Puppets in the 1950s were made primarily of cloth and wood, with faces that didn't allow for much nuance. Henson used foam rubber covered in fabric to gain flexibility and allow the characters to express much more emotion.
Henson created two "proto-Muppets" to star in Wilkins' ads: The cheerful Wilkins, who liked the coffee, and a grouchy character called Wontkins, who did not like the coffee and was punished. These commercials were such a hit that vinyl dolls of the puppets became mail-order items.
Getty Images | US Patent Office
Bill Nye the Science Guy is known for his wacky approach to educating children about science. A Cornell-educated mechanical engineer, Nye never tiptoes around technical problems in need of a practical solution.
While shooting a show on bones and muscles at the Pacific Northwest Ballet, Nye noticed the dancers had bloody shoes. He learned that several of the dancers had already experienced multiple surgeries because of the pain and pressure placed on the toes. Nye thought there had to be a better way.
He created a shoe with support that received a patent in 2005. The support system includes a "longitudinal support member, a foot encirculating tubular sleeve, and/or a toe ridge," the patent states, all engineered around the daily wear and tear on a dancer's foot.
Nye updated a shoe that hadn't changed in more than a century. Bravo!
US Patent Office | Getty Images
Nye wasn't the only one innovating for dancers. The 80s pop sensation behind "Straight Up" and "Opposites Attract" and later a television fixture as "American Idol" judge, Paula Abdul was a dancer and choreographer before her music career took off. She found that the microphone stands restricted her movement. They were heavy, hard to move and had cables that got tangled easily.
Abdul designed a "Dynamic Microphone Support Apparatus," which was awarded a patent in 2009. The patent describes "an apparatus has a base that has a concave-shaped bottom portion that is positional on a surface. In addition, the apparatus has a base cover that is positioned over the base and covers the compartment such that weight of a user positioned on the base cover applied in a direction causes the base to tilt with respect to the surface in the direction."
Or to give it to you straight up, the performer can stand on the concave base and shift their weight whichever way she wants.
Source: US Patent Office | YouTube
Michael Jackson might be known for his iconic moonwalking dance moves and music video innovations during MTV's early days, but some of his moves in those classic videos had a little mechanical help.
In 1988, Jackson was shooting the video for his song "Smooth Criminal" and co-patented a shoe that would allow the wearer to lean forward far beyond his center of gravity. The video opened with this gravity-defying move, and the patent was awarded six years later.
To accomplish this move, Jackson and two of his costumers designed a hitching mechanism that was built both into the floor of the stage and the performer's shoes. A system of pegs rise from the stage and attaches to the specially designed shoes, which have cutouts in the heels. These slots can slide over the pegs, temporarily attaching the performer to the stage. Once firmly secured, the performer can lean without fear of falling and, most importantly, while looking incredibly cool, as cool as this King of Pop.
Kevin Winter | Getty Images
Once known as "the most beautiful woman in the world" and star of Cecil B. DeMille's "Samson and Delilah," actress Hedy Lamarr has contributed to the connected world we now live in.
An émigré from Austria, Lamarr was asked to sell war bonds, but she wanted to do more for the U.S. She met composer George Antheil at a dinner party, where they conversed about Allied subs wasting torpedoes. Lamarr had once been married to a munitions manufacturer and knew various weapons technologies, including torpedo control.
The two devised a radio-controlled torpedo but thought the enemy could easily jam the signals, so they added an idea called "frequency-hopping." A sequencer randomly jumped through 88 frequencies, based on the 88 keys of a piano, making it virtually impossible for the Axis to follow. In 1942 they were awarded a patent for their "Secret Communication System" and gave it to the Navy.
Lamarr's invention is the precursor of several wireless technologies, including cellular networks, GPS and Bluetooth. Lamarr and Antheil were inducted into the National Inventors Hall of Fame in 2014.
Tune in to "Make Me a Millionaire Inventor" on CNBC on Wednesdays at 10 p.m. ET/PT.
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d5a9f323cdaa584688ad051308d44b8d | https://www.cnbc.com/2015/08/19/canada-pharmacy-charged-in-78m-drug-export-scheme.html | Canada pharmacy charged in $78M drug export scheme | Canada pharmacy charged in $78M drug export scheme
Is this a prescription for ending international online sales of medication to American buyers or is it just a placebo?
A newly unsealed federal indictment charges a major Canadian online pharmacy and a number of other related entities and people, including an American doctor, with conspiring to allegedly smuggle mislabeled and unapproved prescription drugs into the United States.
Scott Tysick | Getty Images
The indictment's highlights include allegations that some of the drugs sold to doctors by CanadaDrugs.com—ones used to treat cancer—were counterfeit, and that $78 million worth of medication was shipped to the U.S. as part of the scheme. In some cases, prosecutors claim, cancer drugs that were meant to be kept cold were not, and CanadaDrugs tried to cover up that fact.
But only one of the people charged in connection with the case, Ram Kamath of Illinois, has actually been arrested so far. Kamath, who is charged with a single count of conspiracy to smuggle goods into the U.S. was freed without bond, and recently was allowed to take a cruise to Alaska.
The allegations against Kamath are significantly less serious than the ones made against other defendants, and he faces the least possible maximum sentence, of five years in prison. He is accused primarily of agreeing to store temporarily a small amount of drugs in his refrigerator on behalf of Canada Drugs after the company told him they were recalling that shipment.
"He's pleaded not guilty and we're going to trial," said Kamath's defense lawyer, Michael Ettinger. "He's innocent."
Ettinger called Kamath, who is due to be arraigned in Montana next week, a "hard-working, honest guy." He noted that Kamath had helped design a planned drug importation program for the state of Illinois under then-Gov. Rod Blagojevich in 2004.
The other 13 people and companies charged are outside the U.S. It's not clear when, or even if, they will be extradited to face the felony charges that include smuggling, conspiracy and money laundering in federal court in Montana.
Also, Canada Drugs and its executives were not charged with selling prescription medication to individuals for personal use in the U.S., a practice the company continues to this day, and which advocates say help get millions of sick people much-needed drugs at prices that are much less than they would pay at an American pharmacy.
It is not clear that the prosecution will put a dent in such online retail sales by Canada Drugs, or any other pharmacy that exports prescription drugs to the U.S, even though it is technically illegal for Americans to import drugs from international pharmacies.
An American lawyer for Canada Drugs did not return a request for comment.
The U.S. Food and Drug Administration, which is playing a key role in the prosecution, declined to comment. A spokeswoman for federal prosecutors in Montana did not have an immediate comment when contacted by CNBC.
Critics of international online pharmacies are hailing the prosecution as a step in the right direction of protecting customers. But the company where Kamath worked as a consultant, PharmacyChecker.com, which verifies the legitimacy of online pharmacies, argues that the case is being used "to discredit safe personal drug importation."
More Americans cut spending to pay for prescription drugs
The case comes as drug prices rose by an average of nearly 11 percent last year, well outpacing the rate of overall health-care inflation. A number of surveys have found that millions of Americans have difficulty affording the out-of-pocket charges for their medication, even if they have insurance.
According to the indictment unsealed in Montana, CanadaDrugs.com, its executives and related companies from 2009 through March 12 conspired to smuggle in medication to the U.S., which included "unapproved new drugs and misbranded prescription drugs."
The indictment charges that in 2011, Canada Drugs purchased what turned out to be counterfeit versions of the cancer drugs Altuzan and Avastin, and sold the drugs to U.S. customers.
In December 2011, after Canada Drugs allegedly learned that some of the Avastin it had purchased and shipped to the U.S. was possibly counterfeit, it moved to recall the drugs. The head of a Canada Drugs subsidiary then allegedly asked Kamath if he could store some of the Avastin in his house for a period of time, and "Kamath agreed," according to the indictment.
Prosecutors claim that Canada Drugs, after learning of the "serious breach of its supply chain" and that it might have distributed counterfeit Avastin, "made no attempt to notify the FDA or other authorities."
The indictment also alleges that "the Internet pharmacy industry funneled benefits to Kamath through the inspections he conducted" for PharmacyChecker.com, and that "in exchange, Kamath would help provide them with the veneer of legitimacy that comes with having been inspected by an 'independent' party."
The Alliance for Safe Online Pharmacies seized on the unsealing of the indictment, and called out PharmacyChecker.com even though the company is not charged with any wrongdoing.
"For years, millions of patients and physicians have relied upon PharmacyChecker.com and CanadaDrugs.com believing they are getting genuine drugs from a real Canadian pharmacy," said ASOP founder and executive director Libby Baney. "The [Justice Department] indictment evidences that these entities have been touting myths, giving U.S. physicians and consumers a false—and consequently dangerous—sense of confidence."
Baney said that "ASOP is excited about this, that this case is being brought."
"We're pleased to see that the government is focused on this public health threat," she said. "You don't have the ability to determine the quality or safety of these medications."
When CNBC asked why she thought the federal government was not prosecuting CanadaDrugs for direct sales to individuals with a prescription for their personal use, Baney said, "That's a really good question, I don't know the ins and outs of the case." She noted that such sales are just as illegal as the ones alleged in the pending indictment.
"I don't have any insight as to why the case is being brought this way," Baney said.
Cholesterol drug cost worries linger even after spending report
Gabriel Levitt, executive vice president of PharmacyChecker.com, pointed to a blog post by the company that said, "We are of course dismayed by the charges" against Dr. Kamath, "but we are confident that in the end Dr. Kamath will be exonerated."
Levitt, when asked about the indictment's claim the Kamath received "benefits" from the pharmacy industry, said "we charge fees for our verification program to cover cost," which he said was normal for many private credentialing companies.
"I believe the government is using highly misleading language to describe something that is very commonplace," he said.
In its blog, PharmacyChecker said, "You may be asking the same question we have been asking ourselves: If Dr. Kamath was not involved in the sale of Avastin by CanadaDrugs, nor in any aspect of CanadaDrugs' pharmaceutical sales, why was he included in this sweeping indictment? Does this reflect an attempt by someone in the FDA to punish Dr. Kamath for his prominent role in the development of safe personal drug importation. Is this simply the product of an overzealous FDA doing the bidding of the pharmaceutical industry?"
The blog also said that "years of verification by PharmacyChecker, and peer-reviewed empirical studies confirming the strength of our program, coupled with extensive use by Americans, have demonstrated that CanadaDrugs.com is a safe international pharmacy for personal drug importation."
Levitt said also cited a column he had written for TheHill.com
In that article, he wrote, "after 15 years of online pharmacy purchases, not a single American has been reported killed by a medication purchased over the Internet from an international online pharmacy that requires a valid prescription and does not sell controlled drugs. We're talking about Internet pharmacy companies that work with licensed pharmacies in many countries—not just Canada."
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d588c804457043fd41b36d46dcd65b5b | https://www.cnbc.com/2015/08/19/currency-wars-unlikely-to-be-successful-despite-yuan-move.html | Currencies lose firepower as an effective trade weapon | Currencies lose firepower as an effective trade weapon
Getty Images
When China's central bank last week triggered the two biggest single-day falls in the renminbi since the 1990s, plenty of people were keen to proclaim a resumption of the "currency wars" that have been a feature of the global economy since the 2008 financial crisis.
But if Beijing's move prompted a predictable political response from veteran currency warriors in Washington and other capitals, it ignored what many trade economists see as an increasingly well-documented fact — currencies are not the trade weapon they once were.
In a new study of 46 countries including China, economists at the World Bank found that currency devaluations are these days only half as effective a tool for boosting exports as they were in the mid 1990s.
Moreover, the World Bank economists found the more that countries became integrated into the global economy — as China has done in spectacular style since the 1990s — the less the effect was likely to be of any currency changes on their exports.
For countries such as China that weaken their currencies to seek competitive advantage in global trade, there is a "distinction between the perception of the impact of a depreciation and the actual impact a depreciation can have", says Michele Ruta, one of the study's authors.
The reality today, he says, is that years of data show the impact is likely to be much less than it used to be.
There are a number of reasons for that. But the biggest, say Mr Ruta and his colleagues, is the advent of global supply chains over the past two decades and the reality that many products today are agglomerations of parts made in many different countries
The result is a much more complex calculus for many economies such as China's and products that have become necessities of modern life.
More from the Financial Times:
Renminbi shift challenges global markets China warns of fresh renminbi volatility A currency skirmish that was not made in China
Weaker currencies do still lower the cost and therefore raise the international competitiveness of many goods exports while increasing the cost of imports.
For something as simple as a bottle of Australian shiraz squeezed from grapes grown on Margaret River vines, that reality still holds and matters. A weak Australian dollar will lower the cost of an exported bottle and make it more attractive to offshore consumers. It will also increase the price of imports into Australia of French or Chilean rivals, providing another boost to the local industry.
But for more complex products, like many of the electronic items assembled in China, the real impact is far more difficult to calculate.
Read MoreWhat China's yuan move means for emerging markets
In the case of a smartphone, for example, the screen may have been imported from Japan and the main chip from South Korea, while other parts are sourced in southeast Asia, Europe and even the US. So even as a weaker renminbi in theory lowers the price internationally of the finished product it also raises the cost of imported parts.
For that reason trade economists have increasingly begun to look at who gains the real "value-added" profits from products. Wherever you may buy an iPhone designed in California and assembled in China from parts from all over the world, most of the profits go to Apple not to Foxconn, the Taiwanese assembler or its workers in mainland China.
However, despite the shift in the global economy, in the case of China there is one reason why its exporters may gain more from a weaker currency than they once would have.
China's import intensity — how much of exports were made up of imported parts — has fallen dramatically in many categories over the past decade. China has been expanding its own homegrown supply chains, something trade economists have cited as one reason for slowing growth in global trade in recent years.
VIDEO4:0504:05Did China's yuan devaluation spark a currency war?Street Signs Asia
But beyond China the reality is that even big devaluations have done little to help exports.
In a note to clients this week, Marc Chandler, global head of currency strategy for Brown Brothers Harriman, pointed out that the Japanese yen had fallen more than 17 per cent against the dollar in the past year and yet Japan's exports in the three months to June posted the biggest quarterly decline in five years.
Similar patterns hold true in South Korea, Taiwan and even Germany, Mr Chandler says.
Taken together they point to a bigger malaise in the global economy, one that is unlikely to be overcome by any currency shifts.
"The key message that a lot of people miss is that the best thing for US exports, the best thing for Chinese exports, the best thing for European exports is not weakening currencies, it is stronger global demand," he says.
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ef38b47ac8f6b8f0db51ac056c389257 | https://www.cnbc.com/2015/08/19/the-5-worst-cities-for-small-business-owners.html | Small Business Cities | Small Business Cities
Mark Edward Atkinson/Tracey Lee | Getty Images
While small-business confidence rebounded in July from a 15-month low, there are still some U.S. cities where it is difficult for entrepreneurial businesses to grow.
Every year, Thumbtack ranks the U.S. cities that are the friendliest for small businesses. That means it also ends up ranking the worst cities in the U.S. when it comes to small-business climate.
In all, 95 U.S. cities are ranked on 11 metrics, including training and network programs, ease of hiring and overall regulations. Nearly 18,000 small businesses across the U.S. were surveyed for this year's just-released study.
Read on for the U.S. cities that have the dubious distinction of making the bottom five in the Thumbtack ranking for 2015.
—By CNBC's Sarah Whitten Posted 19 Aug. 2015
Bonnie Jo Mount | The Washington Post | Getty Images
Some North Carolina cities are making a big push to support start-ups, including a Durham-based beverage company that got Google's attention.
But small-business owners in Winston-Salem, North Carolina, portray a worsening business climate in their hometown. In Thumbtack's 2014 ranking, Winston-Salem was ranked as a friendlier place for small businesses with favorable employment, labor and hiring regulations and strong training and networking programs.
But Winston-Salem's lot this year led it to slip into the bottom 5. It was ranked the worst location to start a business by respondents and has seen a decline in educational programs for entrepreneurs.
Top weaknesses Ease of starting a business: No. 95 Training & networking: No. 95 Ease of hiring: No. 94
Biggest strength Zoning regulations: No. 12
Denis Tangney Jr. | Getty Images
Connecticut is one of the most financially challenged U.S. states, with a pension crisis that is hard to fix and increasing taxes that have led some iconic companies in the state, including GE, to threaten to move away. And it appears those troubles are also influencing small business–owner sentiment.
New Haven, Connecticut, has continued to decline since it first appeared on Thumbtack's radar in 2014. The city has struggled to provide education for entrepreneurs and is a difficult locale to start a new business.
Despite its low ranking, the city has seen an increase in ease of hiring and health and safety regulations in the last year.
Top weaknesses Ease of starting a business: No. 93 Training & networking: No. 91 Tax-code rank: No. 91
Biggest strength Licensing regulations: No. 25
The downtown area of Buffalo, New York.Lonely Planet | Getty Images
New York State is making every effort to bring manufacturing jobs to its older, industrial cities. From TV ads taken out by the state to tax credits, cities like Buffalo are hoping for a manufacturing renaissance, bringing in big names such as Elon Musk's SolarCity. But small-business owners don't seem to think the big-business push is helping them, at least not yet.
While this city has one of the better training and networking programs for entrepreneurs, Buffalo has faced difficulty when it comes to ease of starting a business and ease of hiring. If there's a silver lining, while the numbers are bad, respondents actually ranked the city higher on both of these metrics this year than they did last year. Buffalo is the only of the five cities on this list that was also among last year's bottom five.
Top weaknesses Employment, labor & hiring: No. 89 Ease of hiring: No. 87 Ease of starting a business: No. 86
Biggest strength Training & networking: No. 19
Albuquerque, New Mexico.Bob Thomason | Getty Images
Back in 2013, Albuquerque, New Mexico, had a favorable ranking on Thumbtack's friendliest cities list; however, in the past two years, it has seen a decline in health and safety laws as well as licensing regulations.
Top weaknesses Health & safety: No. 92 Licensing regulations: No. 89 Training & networking: No. 88
Biggest strength Environmental regulations: No. 46
SeanPavonePhoto | iStock / 360 | Getty Images
Connecticut may be a desirable location for hedge fund manager homes, but it's clearly not the place to own a small business, with two of the five cities on this list and the bottom city of all, Hartford.
Hartford's struggles in 2015 are pretty alarming, based on responses to the survey from small-business owners. The city has the worst ranking in six of the 11 metrics of Thumbtack's survey and has steadily declined year over year.
The city is the least friendly for small businesses because it lacks favorable regulations and is a difficult location to hire new employees.
Top weaknesses Ease of hiring: No. 95 Overall regulations: No. 95 Health & safety: No. 95 Employment, labor & hiring: No. 95 Licensing regulations: No. 95 Environmental regulations: No. 95
Biggest strength Training & networking: No. 69
Click here for the 10 best cities in America to own a small business.
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832acab8c2e7f8e0c393474de465f806 | https://www.cnbc.com/2015/08/19/the-fed-is-right-trump-is-wrong-commentary.html | Kudlow's Corner | Kudlow's Corner
The minutes from the Federal Reserve's July 28-29 meeting indicate that most officials saw conditions for a rate liftoff as "not yet" achieved. They may be approaching a rate-hike moment, but they're not there yet.
Good call. That's right: Good call.
Tune in to "Closing Bell" at 4:20pm ET today. Larry Kudlow will be guest.
Janet Yellen and Donald TrumpGetty Images
Important forward-looking, inflation-sensitive market indicators are actually heading down, not up. These include soft commodities, sinking oil, weak gold, a strong dollar, declining Treasury break-even inflation spreads, and a flattening yield curve. Add to that slow nominal GDP, a sluggish money supply, and falling velocity.
Read MoreChair Yellen, please take a victory lap!: Jack Bouroudjian
Today's CPI report for July shows virtual price stability, with a 0.2 percent year-on-year gain. So, the Fed is correct in stressing that inflation is not moving up to its 2-percent target. That's the message of markets and actual inflation indexes.
Now, I don't want 2 percent inflation; I want price-level stability. But the Fed, at least, is correct in pointing out that there are no upward inflation pressures that might call for a policy tightening. Plus, there are weak economic conditions in China, Europe, and the rest of the world, and a mediocre recovery in the U.S.
The fed-funds futures market is now showing a 45-percent probability of a target rate hike in September. We will see. Unless inflation-sensitive market-price-rule indicators pop up, I don't see any compelling reason for the central bank to move.
Read MoreHere's where inflation is alive and well
And let's not forget: The stock market, which is a leading indicator of the future economy, is in a wee bit of a correction. Given the recent rise of presidential candidate Donald Trump, we should all be thankful that stocks haven't plunged. Trump's agenda of trade protectionism, dollar devaluation, and immigrant deportation is completely anti-growth. It's like Fortress America in an economy that is completely globalized and where the U.S. must compete in the worldwide race for capital and labor. Trump's policies don't fit.
Instead of attempting to wall off America, we should be increasing trade, maintaining a sound and strong dollar, and building a new legal immigration system — one that will bring the best, the brightest, and the hardest-working people to America — rather than seeking mass deportation.
Last of all, and maybe most important, the best thing Trump or any of the GOP candidates can do to grow America's economy by 4 percent or better is to either slash or abolish altogether the uncompetitive, anti-investment U.S. corporate tax rate. And then the Fed could move toward normalizing its interest-rate and money-supply policies.
Read MoreWhy you should fear Trump
But right now that's not happening. So my message to the Fed remains the same: Move at the pace of an injured snail.
Commentary by Larry Kudlow, a senior contributor at CNBC and economics editor of the National Review. Follow him on Twitter @Larry_Kudlow.
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80a44d9b69d934de5672b839572e6bb5 | https://www.cnbc.com/2015/08/20/thailand-reshuffles-cabinet-to-focus-on-troubled-economy.html | Thailand reshuffles cabinet to focus on troubled economy | Thailand reshuffles cabinet to focus on troubled economy
Prayuth Chan-Ocha, Thailand's prime minister.Dario Pignatelli | Bloomberg | Getty Images
Thai Prime Minister Prayuth Chan-ocha has reshuffled his cabinet, appointing a new finance minister and a new deputy premier to oversee the economy as the military government seeks to spur growth.
Southeast Asia's second-largest economy has consistently missed government targets since Prayuth, then army chief, led a coup in May 2014 to end months of protests, with exports and domestic demand stubbornly sluggish.
A weak economy could undermine support for the junta as frustration with restrictions on political activity simmers, particularly among younger voters and supporters of former Prime Minister Yingluck Shinawatra, whose government was ousted last year.
VIDEO5:0005:00Bomb attack has unified Thailand: PoliticianStreet Signs Asia
Apisak Tantivorawong, former president of state-owned Krung Thai Bank, has become finance minister, replacing Sommai Phasee, according to a proclamation on Thursday.
Apisak, 61, has a master's degree in business administration from the University of Tennessee in the United States.
A government adviser, Somkid Jatusripitak, who is also a former finance minister, has been appointed deputy prime minister in charge of reviving economic growth.
Somkid, 62, a former marketing executive, was a deputy prime minister and commerce minister in a government of deposed Prime Minister Thaksin Shinawatra, Yingluck's brother, and was a key proponent of populist, big-spending policies known as "Thaksinomics".
Somkid has a doctorate in marketing from Kellogg Graduate School of Management at Northwestern University.
"Investors will welcome the new appointments. Somkid has the experience in reviving an ailing economy," said Vikas Kawatra, senior analyst of SCB Securities.
Barnabas Gan, economist with OCBC Bank in Singapore, said the new team might not bring quick change. "With the significant lag in growth already seen in the first half, it is nothing short of a miracle perhaps for Thailand to see a sizable pick-up in economic momentum."
Read MoreBangkok bombing exposes frailty of Thai economy
Among the adjustments, Apiradi Tantraporn, previously deputy commerce minister, has been appointed minister, replacing General Chatchai Sarikulya, who becomes agriculture minister.
Arkhom Termpittayapaisith, previously deputy transport minister, has become minister, replacing Air Chief Marshal Prajin Juntong, who becomes deputy prime minister.
Don Pramudwinai, previously deputy foreign minister, has become minister and a former Board of Investment secretary general, Atchaka Sibunruang, becomes industry minister.
The junta says speedy government spending will drive growth but disbursement of funds has been slow and big infrastructure projects have stalled.
State planners on Monday cut the 2015 economic growth forecast to 2.7-3.2 percent from 3.0-4.0 percent. Many economists believe that is too optimistic.
Growth last year was 0.9 percent.
The economy grew 0.4 percent in April-June from the previous quarter, with tourism the key driver. A bomb in Bangkok on Monday, which killed 20 people, has struck a further blow to the economy.
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267130cc2d10e7d59090246c20987e87 | https://www.cnbc.com/2015/08/20/twitter-stock-falls-below-ipo-price.html | Twitter stock falls below IPO price | Twitter stock falls below IPO price
A trader watches Twitter stock on the day of its IPO in 2013.Adam Jeffery | CNBC
On Thursday, shares of social media company Twitter dropped below their IPO price of $26. The intraday low was $25.94 a share. Shares later ended the day down 5.8 percent at $26.
Twitter went public on Nov. 7, 2013, and ended its first trading day at $44.94 (up 72.84 percent).
Last month, co-founder and interim CEO Jack Dorsey said in an earnings release that the company was facing problems growing its user base.
"Our Q2 results show good progress in monetization, but we are not satisfied with our growth in audience," he said. "In order to realize Twitter's full potential, we must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter's value faster and better communicate that value."
Read More Tweet this: Twitter has lost nearly half its value in 4 months
The company has lost about half of its value in just four months, since April 8. The stock has continued to slip on the news of poor performance and uncertainty around its leadership.
However, the stock did get a boost last week when an SEC filing showed that Dorsey had purchased 31,627 shares of the company.
Notably, Dorsey is just one of several Twitter insiders to buy the stock in recent days. That could signal the board and executive team are making a bet that this is the bottom for the stock. According to a separate SEC filing, board member Peter Currie purchased 9,200 shares on Friday.
However, Dorsey's purchase came after he had sold around 400,000 shares in the last couple of quarters amid turbulence after Dick Costolo stepped down as CEO and stock dropped.
Click here to see how Twitter is trading.
—CNBC's Jacob Pramuk contributed to this report.
Twitter's stock since it went public in 2013. Source: FactSet.
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93ad6f589fc4a1fc1bd6de2f91935e00 | https://www.cnbc.com/2015/08/20/why-blackberry-could-ditch-its-own-os-for-android.html | Why BlackBerry could ditch its own OS for Android | Why BlackBerry could ditch its own OS for Android
BlackBerry's upcoming device is rumored to use Google's Android operating system (OS), in what could be the Canadian company's "last chance" to win in the smartphone market.
Philadelphia-based writer Evan Blass published images early Wednesday on Twitter, which he claimed showed the new BlackBerry smartphone model, dubbed Venice, set for release in November.
TWEET
The big point is that it would ditch BlackBerry's own OS and run Android for the first time in its history. By adopting Android, the world's largest smartphone OS, BlackBerry is trying to appeal to a wide base of existing consumers.
"BlackBerry is taking the view that if you can't beat them, join them," Neil Mawston, executive director at Strategy Analytics, told CNBC by phone.
"BlackBerry OS is not as popular as it once was, so it's looking to move to Android to address the larger market on the consumer side."
Blackberry's "slider" phoneBlackberry
BlackBerry has a tiny share of the global smartphone market and revenue from its hardware business declined 30.6 percent year-on-year in the three months ending May 30.
One of the biggest pain points for users is the lack of apps in BlackBerry's own app store, as well as a user experience that has lagged behind Apple's iOS and Android.
BlackBerry would not confirm if Wednesday's leak was true.
"We don't comment on rumors or speculation, but we remain committed to the BlackBerry 10 operating system, which provides security and productivity benefits that are unmatched," a Blackberry spokeswoman said.
CNBC was unable to independently verify the veracity of the photos.
If the Android speculation is true, it would continue BlackBerry's shift towards opening its software and services to other operating systems.
The Canadian company opened its BlackBerry Messenger service to the other mobile operating systems last year and in March released its security and enterprise apps as well.
Analysts said that a move to Android could be make or break for the future of BlackBerry's devices division.
"From a hardware perspective this is really one last chance for BlackBerry. They have stuck to their guns sticking with their own platform and what they believed was the right thing to do, but consumers have not seen it in the same way," Dominic Sunnebo, global consumer insight director for ComTech at Kantar Worldpanel.
A preview of the upcoming device was provided during a BlackBerry press conference at the Mobile World Congress trade show in March. Few details were given, except that the device was a slider phone with a touch screen and keyboard.
BlackBerry has billed its OS as one of the most secure systems, which is particularly important given its pursuit of enterprise customers.
Android, however, has a bad reputation as a much less secure platform, due to the open source nature of its OS.
If Blackberry does adopt Android, it will need to convince users it features the most secure version of the OS on the market.
"The most important is not whether the device runs Android or not, but it's about what kind of Google services will run on the device, and what kind of security Blackberry will bring on to it to make Android more secure," Francisco Jeronimo, a research director at IDC, told CNBC.
"How will they secure Android like no other vendor can do? If they manage to secure Android they will address the need from enterprises and end users."
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06a0e63aaa878e1769028daf7513b46b | https://www.cnbc.com/2015/08/21/could-ad-blockers-be-the-next-tivo.html | Could ad blockers be the next Tivo? | Could ad blockers be the next Tivo?
Media stocks have been tanking on analyst concerns that ad dollars are shifting to the Internet. But the move to online advertising brings another problem: The growth of ad blocking.
Ad blockers are expected to cost the industry $22 billion in revenue this year, according to a report by Adobe and PageFair, a company that helps publishers work around and measure ad blockers. The research projects that the number of people regularly blocking ads will grow 41 percent to 200 million by the end of 2015.
Maxkabakov | Getty Images
Concerns about ad blocking aren't new and are intensifying as the upcoming Apple mobile operating system will support ad blockers within its Safari mobile Web browser, a big step to take the practice beyond the desktop onto mobile devices. Blocking ads generally makes mobile phones run faster and use less data—which is expected to drive their adoption even further.
Who's cashing in on the trend? AdBlock Plus is the biggest company in the space, with more than 400 million downloads and estimated active users of more than 60 million. The software is free; it makes money by offering companies a certification process to get "white-listed" so their ads are shown. Then about 10 percent of those certified companies—the larger ones—pay a fee. Google is one of those companies. Its search ads are approved, as AdBlock deems them useful.
"We realized you could potentially endanger free content paid for by ads," said Adblock Plus spokesperson Ben Williams. "So we developed criteria for better ads with users; an ad can't pop up or under. It needs to be unobtrusive." Williams said that Adblock Plus is the only ad blocker that tries to do something responsible for the bigger ecosystem by not blocking all ads, explaining that the company doesn't want to put Internet giants out of business.
But with billions of advertising dollars lost every year, free content could be endangered, said Sean Blanchfield, CEO and co-founder of PageFair, a company that works with 3,200 Web publishers to get around ad blockers. PageFair replaces blocked ads with different ads that are designed to be more basic and less invasive so consumers don't mind them. The company estimates that Google—which is not one of its customers—lost $6.6 billion worldwide to blocked ads in 2014, this despite paying Adblock Plus. Google declined to comment on the report.
Amid media carnage, opportunities may abound
When candidates try too hard on social media
Who suffers the most? Companies that provide video and pop-up ads to Web browsers—like video ads on YouTube or pop-ups on any number of websites. Blanchfield points to Internet giants Google, Yahoo and AOL among others.
"The challenge now is to make sure that some publishers can stay in business. The problem isn't that ad blocking exists; the problem is that 200 million people have chosen to download ad blockers," said Blanchfield. "The solution is to reintroduce ads but do it in such a respectful way that people don't choose to hide ads."
Who's best-positioned? All the companies who deliver ads within apps—that means Facebook, Instagram, Snapchat and even Twitter, who weave ads into their platforms.
Facebook appears to understand that advantage. "Most ad-blocking software is focused on browsers and display ads instead of ads shown in apps," said a spokesperson for the company.
"In our case specifically, ad blockers haven't had as much impact—in part because the bulk of ads shown on/by Facebook are delivered on Facebook and in other apps that integrate with us ... Ad blockers are generally not as effective because they attempt to block entire types of content and can interfere with functionality that people want to receive," the spokesperson said in an email.
It's true that there's no way right now to block ads that appear within apps. But PageFair's Blanchfield doesn't expect it to remain this way forever.
"Ad blocking is mainstream on the desktop. The next stop is that it'll go mainstream on the mobile Web. After that in-app ads will be the next target," said Blanchfield.
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42b5e73c4619b2c19c8863848bb678ca | https://www.cnbc.com/2015/08/21/market-in-panic-mode-correction-not-over-yet-doll.html | Market in panic mode, correction not over yet: Doll | Market in panic mode, correction not over yet: Doll
VIDEO1:3001:30Panic sets in, not over yet: Bob DollClosing Bell
The market is in a bit of a panic mode, with the Dow Jones industrial average plunging 531 points and into correction territory for the first time since 2011, and the correction isn't over yet, noted investor Bob Doll said Friday.
That said, he expects the selloff to eventually become a buying opportunity.
"I think we're rapidly reaching a near-term oversold, from which we'll get a bounce. But I don't believe this corrective period is over yet. Most of the decline is probably behind us from a point standpoint. But I think we have more time to sort this out," the chief equity strategist and senior portfolio manager for Nuveen Asset Management said in an interview with CNBC's "Closing Bell."
Because of that, he's waiting before putting his money to work.
"Corrections in bull markets tend to be sharp, they tend to happen quickly but they don't turn around and go back up on a V-bottom. I just want some time to pass and seek some consolidation," he said.
Read MoreWhat exactly is a market correction?
Doll noted that when momentum stocks get hit, like has now happened, it is usually a sign that the market is reaching at least phase one of the corrective period.
Therefore, he'll be looking to see what stocks begin to hold, go down less on down days and up more on up days.
However, for those who have been waiting on the sidelines to get in on a pullback, he said they should take advantage of the selloff and put a little money in the market.
"We're not heading into a recession. Bull markets don't end of old age or valuation levels. They end when somebody smacks it over the head, and I don't think that's what's happening," he said.
Read More How to play the market selloff: Buy boring
In fact, this is the eighth or ninth selloff of more than 5 percent since the bull market started and every other one has been a buying opportunity, said Doll.
"I suspect this one will follow suit eventually."
Disclaimer
—CNBC's Evelyn Cheng contributed to this report.
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7ed27a2aa5634879e4c1770a8b47fb5e | https://www.cnbc.com/2015/08/22/government-employees-spent-extra-1m-to-fly-first-class-report.html | US govt. employees spent extra $1M to fly first class: Report | US govt. employees spent extra $1M to fly first class: Report
Peter Dazeley | Getty Images
What would your boss say if you submitted an expense report that included a $9,000 travel upgrade? That's exactly what at least one government employee did in the past few years.
Government employees spent an extra $1 million tax dollars to fly first class between 2012 and 2014, and based on a sample, more than half those upgrades were unjustified, according to a government watchdog report released this month.
The Office of Inspector General (OIG) of the Department of Commerce, a government watchdog, audited the federal agency's travel log between Oct. 1, 2012, and March 31, 2014. The report shows that in 56 percent of cases, employees of agencies such as the Census Bureau and Patent and Trademark Office have been fudging their expense reports to fly first or business class.
Read More'Bleisure': Redefining luxury travel
Usually, employees are expected to act as a "prudent person" would, according to policy. But they can get premium-class flights if no coach class options are available, if travel time is in excess of 14 hours, or health or security reasons require the upgrade, the report said.
In "unjustified" arrangements, employees submitted outdated or incomplete medical forms, opted for direct flights over connections, or spent the weekend in their destination before returning home, for instance.
Some of the oversights included an approved medical exemption that was sent from a "questionable email address," rather than a traditional form. In another instance, a flier booked their trip from New York to South Korea less than 24 hours in advance—much less than the 30 days recommended. In many cases, reasons provided for a trip had errors or were absent altogether.
Read More Uncle Sam emptying your wallet? Fill up on tax specials
The OIG concluded that the Department of Commerce could have saved at least $112,000 on a sample of 87 of the 245 premium-class flights by clarifying policies, such as what excuses are acceptable for upgrades and who can authorize travel expenses.
In response, the Department of Commerce said it is looking to revise its handbook—something that all companies should consider, said Tim Hird, executive director for Robert Half Management Resources, which consults with white-collar firms on managing high-level professionals.
"Among our clients, companies have put more and more emphasis on expense policies," Hird said. Travel is typically the biggest expense for his clients, but many companies now outsource to third-party programs that only book flights that meet company guidelines.
"We see now more and more that expense reviews are automated," Hird said. "There are companies now out there that specialize in this technology, which can drive efficiency and increase accuracy."
Read More Business travelers spend $611 here per day!
Indeed, government employees are not the only ones guilty of business expenses bordering the unscrupulous. A Robert Half study of 1,600 financial executives found items such as kids' birthday gifts, adult movies, family vacations, pet food and even a tepee on expense reports.
Of course, it's not the first, or most severe, time that government employees have been caught behaving badly.
Three years ago, General Services Administration (GSA) employees were under fire for a conference in Las Vegas that cost $823,000 in tax dollars. GSA head Martha Johnson resigned and eight employees were placed on administrative leave after the 2010 incident came to light.
Read MoreRep. Darrell Issa Blasts GSA Oversight Breakdown
Since then, the many government agencies have made moves toward transparency, embracing initiatives like "Yelp for Government," where users can review government agencies.
The House Oversight Committee, another internal watchdog group, recently held a "Worst Places to Work in the Federal Government" hearing, to pressure federal agencies that "have deep, systemic problems that are hampering employee success, driving away good employees and creating environments where cases of misconduct and mismanagement go unaddressed."
"The vast majority of federal employees are honest, hard-working people who want to be good stewards of American taxpayers' dollars," North Carolina Rep. Mark Meadows, a Republican, said of the hearing in a statement. "But there is great frustration when bad actors are not punished and ongoing remain unaddressed."
Read More Taxes and the martini lunch
Hird said that as organizations look to modernize their expense reporting, they should ensure a feedback system for employees to voice whether policies are realistic, and make sure written travel policies are clear and oft discussed.
"Automated systems are not the only answer," Hird said. "It has to start with the companies taking ownership for their policies. You're ultimately responsible for being your organizations' financial steward, and expenses are an important process that can really affect the bottom line."
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5ccc6a1f539e2558db3442e94c493715 | https://www.cnbc.com/2015/08/23/a-perfect-storm-of-events-but-traders-look-for-oversold-bounce.html | A perfect storm of events, but traders look for oversold bounce | A perfect storm of events, but traders look for oversold bounce
VIDEO1:4601:46Even best stocks hit hard: PisaniMarket Outlook
What caused the sudden drop? BMO's Brian Belski now famous answer on our air: "It's August, dude!" certainly has some truth in it, one reason investors should not over-react.
And it's also true there is not one single event that caused the decline. We have known about China's slowdown since at least June, along with the effect on commodities.
However, two events have occurred in the last two weeks that have added to the anxiety of traders:
1) China's August 11 currency devaluation has thrown a monkey wrench into the two assumptions on which China investors had hung their hats: a) that China could maintain a 7 percent GDP growth, or somewhere very close, and b) that it could engineer a soft landing to its economic slowdown.
Whether fair or not, the markets have interpreted this devaluation as a sign that it no longer was sure it could do either. This has eroded confidence.
2) But the most important story in the market's decline last week was likely the mid-week release of the Federal Reserve minutes, which revealed a Fed deeply divided on whether it should raise rates.
The week could be divided into two parts: Pre-Fed minutes and post-Fed minutes. Markets were relatively calm in the first half of the week, but every metric of stock market activity picked up in the second half of the week: Volume, volatility, and sentiment indicators, culminating in a mild panic on Friday that caused investors to sell even the best performing stocks on the year, winners like Amazon, Facebook, Google, and Neflix, but even less talked-about winners like Mastercard, Nike, Home Depot, and Pfizer.
Volume was heavy in all sectors, indicating traders were lightening up on positions across the board.
For whatever reason, the Fed's indecision seemed to deeply rattle investors. Some explained it by noting the Fed is in a "damned if you do, damned if you don't" situation. If they raise rates, the market is afraid there will be a disproportionate negative reaction. If they don't, it will be an acknowledgement that after eight years of gargantuan efforts on behalf of the Fed the economy cannot even handle a modest 25-basis point hike.
There were several other, smaller events that rattled investors:
1) Brazil's market decline accelerated, hitting a 10-year low as demonstrations against corruption and President Dilma Roussef continued; fear that high-level business executives may get swept up in the investigations has created uncertainty throughout Latin America, as Brazilian investment companies are engaged in much of the infrastructure development on the continent.
2) Tensions between North and South Korea caused large outflows from South Korea, particularly in the main Korea ETF (EWY), which hit a 5-year low Friday, a further blow to confidence in a key investment country.
3) Walt Disney , a dismal performer since it's August 4th earnings release, dropped another 7% for the week after Bernstein downgraded the stock, reciting similar concerns about declining subscriber growth.
Bottom line: A "perfect storm" of negative news descended on the markets. The issue now is whether the Chinese markets can stabilize. Traders are widely anticipating that the People's Bank of China will cut the Reserve Requirements, allowing banks to lend more.
If they can, it is very likely we will see some kind of oversold bounce. I heard of many traders looking to buy into the close on Friday, particularly small cap stocks, where there was aggressive buying of the Russell 2000 ETF, which ended the day down only 1.2 percent, far outperforming the S&P 500's decline of 3.1 percent.
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d5662687bbdf7d86a75a1c183ba21afd | https://www.cnbc.com/2015/08/23/china-rocked-by-second-deadly-chemical-plant-blast.html | China rocked by second deadly chemical plant blast | China rocked by second deadly chemical plant blast
A huge explosion ripped through a chemical plant in eastern China, killing one person and injuring nine, Xinhua news agency said, less than two weeks after two deadly blasts destroyed a warehouse storing chemicals in the northeast.
The fire on Saturday night in Huantai in the eastern province of Shandong was put out after about five hours and authorities said no contamination has been detected, Xinhua said.
But the disaster is bound to raise more questions about safety standards in a country where industrial accidents are all too common following three decades of fast economic growth. A blast at an auto parts factory killed 75 people a year ago.
Cyanide in waters near China blast site 277 times acceptable level: Govt report
Windows shattered in the village where the blast occurred, state media said, and tremors could be felt 2 km (1 mile) away.
Some 150 fire fighters and 20 fire engines were sent to the scene.
The explosion destroyed a factory belonging to Runxing Chemical, a subsidiary of the Runxing Group with 200 million yuan ($31 million) in registered capital, Xinhua reported.
The factory produced adiponitrile, a colourless liquid that releases poisonous gases when it reacts with fire, according to Xinhua.
China blasts death toll rises over 100, with 95 missing: Xinhua
On August 12, two explosions at a warehouse storing dangerous chemicals devastated an industrial park in the northeastern port city of Tianjin, killing at least 121 people, including 67 fire fighters. More than 700 people were injured and thousands were evacuated because of the risk posed by chemicals stored at the site.
The Ministry of Public Security, China's police, said in a statement posted on its website that investigations into the Tianjin blasts were continuing and more time was needed before any conclusions could be reached.
Public anger against the government has surged in Tianjin among residents of apartments near the blasts who believed authorities neglected to police the firm, Tianjin Dongjiang Port Ruihai International Logistics, which owned the warehouse.
A damaged road sign near the site of the explosions at the Binhai new district, Tianjin, August 13, 2015.Jason Lee | Reuters
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27f93344edfea1fbe890c5a06dc53810 | https://www.cnbc.com/2015/08/23/sis-is-different-than-the-late-90s-heres-why.html | This emerging market turmoil isn't too bad. Here's why | This emerging market turmoil isn't too bad. Here's why
An investor observes stock prices in Nanjing, China.Getty Images
Emerging markets are in free fall. Currencies are reeling, stocks are tanking and commodities are sinking, evoking memories for many investors of the financial crisis that hit Asia hard in 1997 and 1998.
Concerns over a slowdown in China have dented confidence, while investors have also fretted over the impact on emerging markets of an imminent increase in interest rates by the U.S. Fed.
Read MoreWhy emerging market currencies are collapsing
But Morgan Stanley has identified eight reasons why it believes this latest turmoil is not as grave as the crisis in the late 90's. Here they are, in the bank's words:
Debt profile: A large part of the debt buildup in this cycle has been in domestic rather than external debt. Moreover, the limited buildup of external debt has been denominated in local currency and has been raised by the public sector. In contrast, the external debt buildup during the 1990s cycle was denominated largely in U.S. dollars and was debt raised by the corporate sector.
Inflation: A large part of the region today is suffering from low-flation in CPI (consumer price inflation) and persistent deflation in PPI (producer price inflation). In typical cycles, inflationary pressures act as a constraint to central banks' response but this constraint is largely absent in this cycle.
Current account: Largely in surplus; only India and Indonesia run a small deficit, which is under 2.5% of GDP.
FX reserves: Foreign exchange cover of short-term debt is higher at three-to-five times. Similarly import cover is higher at around 15 months of imports.
Read MoreWeek ahead: Asia looks to Big Three economies
VIDEO3:1003:10Emerging market currencies craterTrading Nation
Flexible exchange rate: The region's currencies have already been adjusting in the last two years – this ensures a more steady pace of adjustment. Though REER (real effective exchange rate) has been appreciating, Morgan Stanley believe that for most countries, the REER has been transitioning from being undervalued to fairly valued as reflected in the current account balances
External triggers: The pace and magnitude of the rise in real interest rates in the US is likely to be slower/lower, considering that potential growth rate in the US is now lower than in the 1990s.
Monetary stance in Europe: Europe was tightening monetary policy in 1996-97. But in this cycle, Europe has been pursing quantitative easing, keeping real interest rates in negative territory.
Importance of Asia ex-Japan to developed markets: In 1996, a year before the shock, Asia ex-Japan (AxJ) GDP was 9.8 percent of global nominal dollar GDP vs. the current share of 21.8 percent. In 2014, AxJ's nominal GDP now is larger than the euro area's, but still smaller than U.S. In this context, the feedback from Asia's slowdown will affect developed markets as well, challenging the pace of U.S. monetary tightening.
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ced54e464a351143232e4b81e89be4d5 | https://www.cnbc.com/2015/08/24/jim-grant-central-banks-can-and-should-override-the-price-mechanism.html | Grant: Central bank mispricing is backdrop to selloff | Grant: Central bank mispricing is backdrop to selloff
VIDEO5:2705:27Prices 'artificial' worldwide: James GrantSquawk Box
Central bank activity has provided the backdrop to the stock market's recent selloff, closely followed market watcher Jim Grant said Monday.
"It's the mispricing of asset values led by central banks who think that by inflating or lifting up stocks, bonds, real estate they will thereby engender prosperity," he told CNBC's "Squawk Box."
Grant made his comments as U.S. stock futures pointed to a sharply lower open Monday after last week's selloff. The Dow Jones industrial average fell more than 520 points Friday, bringing the index's losses for the week to 1,017.
As of Friday the Dow, Nasdaq and Russell 2000 were all down more than 10 percent from recent peaks, putting them in correction territory. The had its worst week in nearly four years.
Read More Mark Grant: US 10-year yield to hit 1.75%
The mispricing of assets does two things, according to Grant. It pulls demand forward and pushes failure out. He pointed to the junk bond market as an example of central bank intervention. He noted that default rates in the space during the last year were 2.3 percent on average, compared with the average of 4.6 percent going back to 1970.
Companies are borrowing more at this phase of the financing cycle when they might have drawn down debt in the past, he said. That is in part because the terms dictating how that debt will be paid back is looser than it has been in the past, he explained.
"It gives companies a great deal more latitude to persist and to expand and survive," Grant said. "Now, in capitalism there is meant to be failure. It's like the forest floor. There is life, there is regeneration, there is death. Without that, what you find is a bunch of dead ferns. What we have in America it seems to me is more and more evidence of fernitization."
The Federal Reserve has given the United States a system of enterprise that is much slower to change, he added.
Read MoreDavid Katz: Don't get too crazy about this selloff
By printing more money and suppressing interest rates, the U.S. central bank sought to stimulate aggregate demand, but also inadvertently stimulated aggregate supply, he said. That has led to more capital expenditures, production and oil supply.
The Fed has held interest rates near zero since December 2008.
The "lot of everything" that policy has produced weighs on price indices, leading the Fed to print more money and further suppress rates in order to meet inflation targets, Grant said.
He acknowledged that his earlier call that inflation would ramp up was wrong, but said inflation manifests in different ways.
"It seems to me the really pernicious inflation of this cycle has been the systematic comprehensive mispricing of asset prices," Grant said.
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bc91ff3ccd5941c532811c4eb1db92e7 | https://www.cnbc.com/2015/08/24/more-millennials-say-no-to-stocks-and-advisors-adapt.html | Millennials are just saying no to stocks, sticking with cash | Millennials are just saying no to stocks, sticking with cash
VIDEO7:0907:09The millennial futureAge-based Investing
The standard advice from financial advisors to 20-somethings is to invest as much as they can in stocks—regardless of periodic market swings, however wild, like those seen over the past few days—and watch long-term compounding do its magic for the next 40-plus years.
But millennials, the 80-million-strong generation born between 1980 and 2000, don't seem to be getting the message. A slew of surveys show that these young 'uns aren't putting much faith in the stock market. Bankrate's Money Pulse survey from April, for example, shows that just 26 percent of people under age 30 own stocks. An earlier Bankrate survey revealed that young people prefer cash as the best way to hold the money they need for the long term.
Michele Constantini | PhotoAlto | Getty Images
"A huge number of them are opting out of stocks," said Claes Bell, a banking analyst with Bankrate. "This is a big deal."
Baby boomers—closest to retirement—are twice as likely to own stocks, Bell said.
Read MoreLive blog: The latest on latest market rout
"That's the disturbing part, because it's time that makes [investing] worthwhile," Bell said.
Experts worry that millennials, in particular, have a lot to lose by sitting on the sidelines. Not only will they miss out on years of compounding growth, Bell noted, but they may also be facing a more precarious retirement than older generations, with both Social Security and Medicare expected to be depleted in the next decade and a half.
The list of reasons why millennials have a distaste for stocks is long. First, they witnessed two big market drops—the dot-com bust of 2000 to 2001 and the financial crisis of 2008 to 2009. Many watched their parents struggle with layoffs and home foreclosures.
Older millennials started their careers in an abysmal job market while also being saddled with crushing student loans. And when they were ready to start their own households, they were met with an unaffordable rental and home-purchase market.
Read MoreAre millennials more risk-averse?
"The collision between this generation's expectations and reality is going to be problematic," noted Jean Twenge, professor of psychology at San Diego State University and author of "Generation Me: Why Today's Young Americans Are More Confident, Assertive, Entitled—and More Miserable Than Ever Before."
No wonder many think the markets are stacked against them, observers say.
Most millennial clients don't have many assets to manage, so charging assets under management isn't going to compensate the advisor.Ben Wacekfounder of Wacek Financial Planning
"The financial crisis left me thinking these people—and I have no idea who they are—are taking money from people and playing this game with it," said Timothy Sossa, 25, a high school history teacher in Springfield, Massachusetts.
Though he's distrustful, Sossa invests about $400 a month in a moderate allocation portfolio in a 403(b) plan through his school, but "the only reason I'm remotely invested in stocks is because it's required that I invest it," he said. However, he rarely looks at his account and admits he doesn't understand what's in his portfolio.
Because millennials have such a different view of investing than earlier generations, advisors may have to figure out a different way to work with them, starting with the notion of risk.
Certified financial planner Joe Pitzl, a partner at Pitzl Financial, for example, doesn't push his young clients into stocks right from the start.
"To be a heavy equity investor, you have to behave like one," he said. There's little to be gained by pushing young investors into aggressive portfolios if they'll bail at the first whiff of trouble.
Read More
Instead, he recommends the opposite of the asset-allocation rule of thumb, which generally follows that young investors can tolerate risk better than older ones. Initially, he puts young investors into a 50/50 split between stocks and bonds, boosting their equity stake only after they've weathered a bear market or two.
Kendra Thompson, head of North American wealth and asset management for management consulting, technology services and outsourcing firm Accenture, said financial advisors need to adopt many more of these new approaches, including how advisors communicate.
She points to a practice called "tool convergence" that young investors, in particular, insist on.
"The tools the advisor uses and the tools the investor sees should be one and the same," Thompson explained. "The idea that the advisor shouldn't have access to information I don't see is new."
Nowhere is this debate being waged more than around fees. The new crop of digital investment advisors—often called robo-advisors—has put pressure on advisor fees, especially for smaller accounts. Robo-advisors are able to create a customized portfolio and monitor and rebalance it for a fraction of what human advisors charge.
Read MoreRetirement savings tactics explained
To appeal to millennials, said Thompson, advisors need to give them something more than asset-allocation advice. "Millennials really want cash-flow advice, but that's not the way that most investment advisors work," Thompson said.
Some are shifting away from the traditional 1 percent fee for assets under management.
"Most millennial clients don't have many assets to manage, so charging assets under management isn't going to compensate the advisor," said Ben Wacek, a CFP and founder of Wacek Financial Planning. "But by using a retainer, advisors are able to still be compensated.
"The monthly retainer makes sense to them," he added. "So many things are available on a monthly subscription basis: a gym membership, Netflix."
Wacek, a member of the XY Planning Network, all of whom offer retainers to clients, charges $50 to $200 a month, depending on the complexity of the client's needs. About half of his clients use it.
Read MoreWill Gen Y have to fund for itself?
Also on the decline with traditional brokerages, said Accenture's Thompson, is a graduated pricing model where investors receive less advice at a lower price point when their accounts are small but move toward more advice—and pay more for it—as their balances grow.
"Wirehouses are making their entry models much more compelling," she said. "You can't bank that everyone is going to move into your more profitable model, so you have to make sure each model is profitable."
—By Ilana Polyak, special to CNBC.com
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da5e9544e8147199530b3836319568b6 | https://www.cnbc.com/2015/08/24/obamacare-cadillac-taxs-secret-threat-to-fsas.html | Obamacare Cadillac tax's secret threat to FSAs | Obamacare Cadillac tax's secret threat to FSAs
VIDEO3:4903:49Long-term impact of ACA? More costs: ProSquawk Box
If you like your flexible spending account ... you might not be able to keep your flexible spending account.
Obamacare's looming "Cadillac tax" on high-cost health plans threatens to hit 1 in 4 U.S. employers when it takes effect in 2018—and will impact 42 percent of all employers by a decade later, according to a new analysis.(Tweet This)
And many of those employers will be subject to the heavy Obamacare tax because they offer popular health-care flexible spending accounts to workers, which, ironically, are designed to reduce the income tax burden to those employees.
As a result, the co-author of the analysis expects the health FSAs to start being phased out and "largely disappearing" over time by companies looking for reduce their exposure to the Cadillac tax.
Over time, the expectation is virtually every employer will be subject to the Cadillac tax.Larry Levittsenior vice president, Kaiser Family Foundation
Getty Images
"In the next few years, when some employers will be subject to the Cadillac tax, I would expect some employers to drop FSAs," said Larry Levitt, senior vice president of the Kaiser Family Foundation, which issued the analysis Tuesday. "Over time, the expectation is virtually every employer will be subject to the Cadillac tax."
That may come as a surprise to the millions of Americans who make pretax contributions from their paycheck into health FSAs and then use that tax-free money to pay for out-of-pocket medical expenses, such as office visit copays, and other eligible costs not covered by their insurance plans. Up to $2,550 can be put into a health FSA in 2015.
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Health FSA fans will be in for a further rude surprise as their employers attempt to reduce the effect of the tax on their bottom line through other strategies, such as increasing deductible limits, cutting the number of health plans available to workers, offering narrower networks of doctors and hospitals, and eliminating covered services.
"One of the effects [of the tax] will likely be cutbacks in benefits," Levitt said. "The breadth of effects from this tax grow significantly over time, and eventually the vast majority of workers will find themselves with changes in their health benefits as [a result] of this tax."
Kaiser's analysis also highlights the fact that the Cadillac tax costs can be different for different employees within the same company, even if they are enrolled in the same health plan, further complicating companies' compliance with the law. Employees who use FSAs will be more apt to trigger the tax, and more apt to generate a higher tax amount, than employees who don't use FSAs.
While not all eligible workers use FSAs, those that do often find them useful for reducing the cost of their out-of-pocket medical expenses, given their use of pre-tax dollars.
A spokesman for the human resources consulting firm Aon Hewitt noted that "almost all large employers offer health-care FSAs," and that participation in them among employees ranges from 17 to 20 percent.
Benefits management giant ADP said that the average health FSA annual election in 2015 for the 1.5 million such accounts it manages was $1,300, up $100 from the average in 2013. A spokesman said that the uptick is likely the result of a rule change that allows participants to carry over up to $500 into the next year, as opposed to forfeiting that unused money.
In contrast, the Cadillac tax is a particularly unpopular, yet key element of the Affordable Care Act, and one that is drawing renewed calls for its demise.
"It's a tax that deficit hawks and economists love, but every other interest group hates," Levitt said.
The tax is designed to generate revenue—an estimated $87 billion over a decade—to help fund the federal government's expansion of health insurance coverage to more Americans through subsidies to customers of Obamacare plans sold on government exchanges, and through expanded Medicaid benefits.
The Cadillac tax is also designed to help decrease overall health-care spending inflation by imposing a steep levy on high-cost insurance plans, discouraging overuse of medical services. Most Americans, about 160 million people, are covered by job-based health insurance plans.
It is "one of the strongest cost-containing measures in the ACA," Levitt said.
In 2018, employers whose health plans exceed certain cost thresholds will be subject to a 40 percent tax on the amount over those limits. That year, the cost thresholds are $10,200 for plans covering only an individual, and $27,500 for plans covering more than just the worker. The tax is not deductible by the employer as a business expense, as health plan costs normally are.
Although the thresholds increase over time, Kasier's analysis and others project that a rising number of employers will find themselves subject to the tax after 2018 because the price of insurance premiums are expected to rise faster than the threshold maximums. Kaiser notes that "19 percent of employers already in 2015 have a plan that would exceed the [Cadillac tax] threshold when FSA offers are considered."
The total premiums paid for a health plan, both the employer's share and the worker's contribution, are used to calculate the cost of the plan, as is what an employer contributes to health savings accounts, which are another tax advantaged way to save to help pay for medical costs.
Levitt noted that the amount of money a worker contributes into an HSA without having the money automatically deducted from their payroll is not counted toward the Cadillac tax threshold. But the money a worker puts into his health FSA is counted toward the Cadillac tax threshold.
FSAs can dramatically raise a company's exposure to the Cadillac tax.
Kaiser's analysis, which assumed annual premium increases of 5 percent, found that just 16 percent of employers would have at least one health plan hitting the $10,200 Cadillac tax threshold for single-only coverage in 2018 if health FSAs were not considered. But 26 percent of employers would exceed that threshold that year if FSAs are included in the analysis.
In 2023, when the threshold rises to $11,800 for single-only plans, 22 percent of employers would hit the threshold if FSAs were not factored into the calculation, but 30 percent of employers would if FSAs are considered.
Kaiser also noted that if insurance premiums rise faster than 5 percent annually, the number of employers affected by the Cadillac tax will be markedly higher much sooner.
Larger employers, those with 200 or more workers, will hit by the tax more quickly than smaller ones, Kaiser's analysis found, "because large firms ... are much more likely than smaller firms to offer an FSA."
The analysis also says, "As we noted ... not all employees offered an FSA option will make the maximum contribution, and some will make no contribution, which means that the threshold will be reached for some employees and not for others with the same plan choices."
Although 2018 may seem long off, "employers are very focused on" the tax and preparing for its introduction, and "the political pressure to make changes to this tax are already there, in spades," Levitt said.
Earlier this month, U.S. Chamber of Commerce President and CEO Thomas Donahue, in an commentary that ran in several media outlets, attacked the tax, and said, "It may be the law of the land, but if this provision is allowed to stand, it will only push costs higher—and it will steadily unravel employer-sponsored coverage, the backbone of our system."
"Ultimately, it's the employees who will ultimately pay—either through lost coverage options or higher costs," Donohue wrote.
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On Friday, a coalition of private and public employers and workers called "Alliance to Fight the 40" wrote members of Congress urging repeal of the Cadillac tax.
"The stated goal of health reform was to build upon employer-based coverage and lower costs," the alliance wrote. "This tax will do neither. Instead, it will erode an important source of quality coverage and compel a shift of costs to workers—something neither employers, nor employees want to see happen."
The letter, which includes links to a number of studies analyzing the impact from the tax, noted that a bipartisan group of members of the House of Representatives has sponsored a bill that would repeal it.
"We urge you to join their effort," the alliance wrote. "The tax must be repealed. If Congress waits, it will be too late."
Levitt said that if the tax were to be repealed, which is by no means certain to happen given President Barack Obama's veto pen, "Congress either has to find other revenues to replace what this tax produces, or agree to increase the deficit."
A spokeswoman for the Treasury Department said, in response to the Kaiser study, that the Cadillac tax when it kicks in "will only affect the highest-cost plans, representing a small fraction of workers," according to department estimates.
"While we have not closely reviewed today's study, it is important to note that it counts an entire employer as affected by the tax if the firm has at least one plan that could trigger the tax, even if the vast majority of the firm's workers are enrolled in other plans and even if an overwhelming majority of the particular plan's enrollees would not be affected," the spokesman said. "In addition, it does not account for key protections in the law for firms with older workers or persons in high-risk occupations."
The spokeswoman noted that the ACA adjusts the threshold for the tax based on factors such as age of workers and high-risk professions to ensure that workforces with sicker employees are not penalized.
And she said that economists agree that the tax would help lower the growth of health costs, so repealing the tax would raise costs systemwide, while at the same time increasing the federal deficit by an estimated $87 billion through 2015.
Correction: The Kaiser study found that 16 percent of employers would have at least one health plan hitting the $10,200 Cadillac tax threshold for single-only coverage in 2018 if FSAs weren't considered. A previous version of this story misstated the year.
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f1b4799c162792419a31aee37efe81c7 | https://www.cnbc.com/2015/08/24/stocks-plunge-in-historic-rout.html | S&P 500 closes in correction: CNBC Special 7pm ET | S&P 500 closes in correction: CNBC Special 7pm ET
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U.S. stocks plunged more than 3.5 percent on Monday, closing off session lows in high volume trade as fears of slowing growth in China pressured global markets. (Tweet This)
S&P 500 ended nearly 80 points lower, off session lows of about 104 points lower but still in correction territory after the tech sector failed intraday attempts to post gains. Nine of the 10 sectors are in correction territory, with consumer staples less than 1 percent away.
Programming note: Tune in to CNBC at 7 p.m., ET, for special live coverage of the market meltdown.
Cumulative trade volume was 13.94 billion shares, the highest volume day since Aug. 10, 2011. Composite trade volume on the New York Stock Exchange was 6.57 billion shares, the heaviest since Oct. 27, 2011.
"This is the proverbial markets hating uncertainty and you've got uncertainty in every driver—Fed, China, oil prices," said Quincy Krosby, market strategist at Prudential Financial. "This is a market in pricing discovery in where prices should be."
"The market's going to be focused on China tonight to see if they come on tonight with something that would be considered a viable (way) to stimulate growth in that economy," she said.
Read More Don't trust your intuition during this market selloff
The major averages had a volatile day of trade, plunging sharply in the open and more than halving losses to trade less than 1 percent lower on the day, before closing down more than 3.5 percent.
"I think we probably rallied too fast. A lot of people that covered their shorts got their shorts covered," said Peter Coleman, head trader at Convergex. He noted the Dow was still trading several hundred points off session lows and that a close better than 500 points lower would be a good sign.
The Dow Jones industrial average ended 588 points lower after trading in wide range of between roughly 300 to 700 points lower in the minutes leading up to the close.
Monday's rout extended recent slides in global stocks. The blue-chip index posted its biggest 3-day point loss in history of 1,477.45 points.
In the open, the index fell as much as 1,089 points, making Monday's move its biggest intraday swing in history. In midday trade, the index pared losses to trade about 110 points lower.
In the first 90 minutes alone, the index traveled more than 3,000 points in down and up moves. After 11:00 a.m., the index traveled more than 1,800 points, for a total of an approximately 4,900-point move in Monday's trading session.
"I'm hoping for some stability here but I think markets remain very, very vulnerable to bad news (out of) emerging markets," said Dan Veru, chief investment officer at Palisade Capital Management.
He attributed some of the sharp opening losses to exchange-traded funds. "It's so easy to move a bajillion dollars in a nanosecond."
Trading in stocks and exchange-traded funds was paused more than 1,200 times on Monday, Dow Jones said, citing exchanges. Such pauses total single digits on a normal day, the report said. An increase or decline of five percent or more triggers a five-minute pause in trading, Dow Jones said.
The major averages came sharply off lows in midday trade, with the Nasdaq off as low as less than half a percent after earlier falling 8.8 percent. Apple closed down 2.5 percent after an attempt to rally more than 2 percent.
"There was sort of a lack of follow-through after the morning's crazy action in the overall market," said Robert Pavlik, chief market strategist at Boston Private Wealth. "The selling really dissipated once we got to around 10 o'clock."
He attributed some of the late morning gains to a short squeeze and bargain hunting.
Read MoreDow stocks with the biggest buying momentum
Art Hogan, chief market strategist at Wunderlich Securities, noted that the sharp opening losses were due to great uncertainty among traders and the implementation of a rare market rule.
The New York Stock Exchange invoked Rule 48 for the Monday stock market open, Dow Jones reported.
The rule allows NYSE to open stocks without indications. "It was set up for situations like this," Hogan said.
Before this week, Rule 48 was most recently invoked in January 2015. In all, Rule 48 has been invoked 67 times since it was approved in 2007, according to an NYSE spokeswoman. The goal of the rule is to ease market volatility.
Stock index futures for several major indices fell several percentage points before the open to hit limit down levels.
Circuit breakers for the S&P 500 will halt trade when the index decreases from its previous close by the following three levels: 7 percent, 13 percent, and 20 percent.
"Fear has taken over. The market topped out last week," said Adam Sarhan, CEO of Sarhan Capital. "We saw important technical levels break last week. Huge shift in investor psychology."
"The market is not falling on actual facets of a sub-prime situation. It's falling on fear of the unload of China. That's really behind this move," said Peter Cardillo, chief market economist at Rockwell Global Capital.
The CBOE Volatility Index (VIX), considered the best gauge of fear in the market, traded near 40. Earlier in the session the index leaped above 50 for the first time since February 2009.
"When the VIX is this high it means there's some panic out there," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
However, he said with stocks more than halving losses he "wouldn't be surprised if we closed positive." "If you could move it that far you could move it another 350 points" on the Dow," he said.
Read More8 things you need to know about bear markets
Overseas, European stocks plunged, with the STOXX Europe 600 down more than 5 percent, while the Shanghai Composite dropped 8.5 percent, its greatest one-day drop since 2007.
Treasury yields came off session lows, with the U.S. 10-year yield at 2.01 percent and the at 0.58 percent.
The U.S. dollar fell more than 1.5 percent against major world currencies, with the euro near $1.16 and the yen stronger at 119 yen versus the greenback.
A U.S. Treasury Department spokesperson said in a statement that "We do not comment on day-to-day market developments. As always, the Treasury Department is monitoring ongoing market developments and is in regular communication with its regulatory partners and market participants."
Major U.S. Indexes
The Dow Jones industrial average closed down 588.47 points, or 3.58 percent, at 15,871.28, with JPMorgan Chase falling about 5.3 percent as the greatest decliner.
The S&P 500 closed down 77.68 points, or 3.94 percent, at 1,893.21, with energy plunging about 5.2 percent to lead all 10 sectors lower.
The S&P 500 firms lost $685 billion in market cap, about $100 billion more than Apple's market cap.
The Nasdaq Composite closed down 179.79 points, or 3.82 percent, at 4,526.25.
The Dow transports ended more than 3.5 percent lower to approach bear market territory.
About 10 stocks declined for every advancer on the New York Stock Exchange, with an exchange volume of nearly 1.7 billion and a composite volume of nearly 6.6 billion in the close.
Crude oil futures settled down $2.21, or 5.46 percent, at $38.24 a barrel, the lowest since February 2009. In intraday trade, crude oil futures for October delivery fell as much as $2.70 to $37.75 a barrel, a six-and-a-half-year low.
Gold futures settled down $6.10 at $1,153.60 an ounce.
No major economic data or earnings releases were due Monday.
Read MoreTurn those presses back on! QE4 talk kicks in
Atlanta Fed President Dennis Lockhart said he expects a rate hike this year and did not repeat a September call.
—CNBC's Patti Domm, Gina Francolla and Robert Hum contributed to this report.
Correction: This story has been updated to reflect that Rule 48 was last invoked in January 2015, not during the financial crisis, according to NYSE.
On tap this week:
Tuesday
9 a.m.: S&P/Case-Shiller home prices, FHFA home prices
10 a.m.: New home sales, Consumer confidence
1 p.m.: $26 billion 2-year note auction
Wednesday
8:30 a.m.: Durable goods
9:45 a.m.: Services PMI
10 a.m.: New York Fed President Dudley on regional economy, Q&A
1 p.m.: $35 billion 5-year note auction
Thursday
Jackson Hole Fed symposium begins
8:30 a.m.: Initial claims
8:30 a.m.: Real GDP Q2 (second)
10 a.m.: Pending home sales
1 p.m.: $29 billion 7-year note auction
Friday
8:30 a.m.: Personal income
10 a.m.: Consumer sentiment
Saturday
12:25 p.m.: Fed Vice Chairman Stanley Fischer at Jackson Hole; topic U.S. inflation
More From CNBC.com:
Lots of holding firm, little panic—SurveyThe only thing that can save this market#BlackMonday, market selloff take over Twitter
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9ca3df2e4802e2086cacdff59e01af7e | https://www.cnbc.com/2015/08/25/cuban-takes-another-jab-at-high-frequency-trading.html | Cuban takes another jab at high-frequency trading | Cuban takes another jab at high-frequency trading
Mark CubanDavid Paul Morris | Bloomberg | Getty Images
Celebrity investor Mark Cuban reiterated advice to wait and watch in the stock market Tuesday, writing, "We have no idea what direction the market is headed," in images that surfaced online.
Cuban, renowned for his success founding and funding start-ups, told his followers that high-frequency traders (HFT) are dominating the stock market this week. In particular, he warns the computer-based rapid trading poses risks for investors, who can't act as fast as a machine.
"They [high-frequency traders] see what's happening and make bets on it before you do," Cuban wrote on Cyber Dust, an ephemeral messaging app. "So be careful in this market."
Read More Cuban: China fell prey to top mistake an investor can make
The "Shark Tank" star's remarks come after several days of historic stock market routs, with about 200 companies in the S&P 500 hitting 52-week lows Monday. In his latest note to his "dusters"— a term for users of the Cyber Dust app that he advises and funds—he said that high-frequency trading firms are "benefiting immensely" from the market, and perhaps even controlling it.
"This week is unique in stock market history because algorithms are dominating the market," Cuban wrote. "It's truly a 'Terminator' market."
Cuban's remarks Tuesday echoed his Monday sentiments that the current market moves are not caused by "normal trading."
VIDEO3:5903:59A 'three stooges' market: Mark Cuban Fast Money
"No one else that trades can move the market [by] hundreds of points in hundreds of seconds in either way," Cuban said on CNBC's "Fast Money" Monday. "What we saw today was like a three stooges market… that doesn't happen from normal traders, that doesn't happen from large funds taking positions or selling positions, that happens because algorithms watch everything that's happening."
Cuban explained how he thinks HFT, an increasingly popular method of trading securities quickly and often, could short-change "normal" retail investors.
"To understand HFT, think of it this way," Cuban wrote Tuesday. "Have you ever been in a situation where there are two TVs in two different rooms, watching the same game, and one TV is a couple of seconds behind the other? Imagine if you could be watching the faster TV and make bets with a person watching the slower TV. You could bet last second what happens in the next play, knowing you see the outcome before the other person."
Read More Mark Cuban's 3 tips for success
While Cuban said he sees HFT traders as the "winners" of the recent market rout in a separate note, he said he sees highly-valued "unicorn" start-ups and their investors as the losers.
"If the markets stay down here for an extended period of time, they are cooked," he said of the $1 billion-dollar Silicon Valley companies.
Cuban has been actively commenting on the week's market volatility via Cyber Dust. The self-made billionaire first debuted his "do nothing" mantra Monday morning, writing that the "biggest mistake" investors could make is thinking they are smarter than the market as a whole.
Read More Cuban on the tech bubble: There's no liquidity
He himself has not refrained from taking advantage of low stock prices. In addition to an order for HFT firm Virtu, Cuban said Monday on "Fast Money" he bought shares of social media giant Facebook for $87, and sold put options.
Cuban called Facebook, which rallied about 20 percent from its intraday low of $74.72 on Monday, along with Google, a dominant force in the new media landscapes.
"It's driving the ad economy, it's driving content consumption in so many different ways, they're doing a lot of things right. "
—CNBC's Kristin Cwalinski, Karma Allen, and Evelyn Cheng contributed reporting.
VIDEO1:4201:42Happy camper with Netflix and Facebook: Mark Cuban Fast Money
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1c7b7ac531516aef0da42169c6cc340b | https://www.cnbc.com/2015/08/25/did-the-fed-really-miss-its-window.html | Has the Fed REALLY missed its window? | Has the Fed REALLY missed its window?
Janet YellenGetty Images
The window to raise rates hasn't been slammed shut—it has yet to creak open.
The panicky selloff in global markets prompted a chorus of observers to bemoan that the Federal Reserve has now missed its chance to raise interest rates.
But financial conditions are just one aspect of the broader economy. This selloff, steep as it's been, is only significant if it begets a global recession or otherwise trips up America's ongoing expansion.
Really, the U.S. has been crawling toward the precipice, finally, of full recovery and higher interest rates.
The biggest risk to that outcome, paradoxically, would be for the Fed to hike rates prematurely. Their window was not "open" to do so last year just because commodity prices hadn't yet fully collapsed and China hadn't yet stumbled.
Why?
There are three keys: employment, inflation, and expectations.
Read MoreThe Fed hike could lower interest rates
First, jobs. While the unemployment rate has plunged, employment gains have been broadly fitful and risk stalling out.
Importantly, the share of people at prime working age who are actually employed has improved gradually but paused of late. That ratio, which was above 80 percent before the 2007-08 financial crisis hit, dropped below 75 percent before recovering to a post-crisis high of 77.3 percent in February. It has since weakened.
As for inflation, there has been a plunge in the prices of commodities and other goods and a steady increase in the price of many services, like shelter and medical care. That mix, over time, could support business margins and consumer spending. It relies on higher wages, though, which is why continued employment gains are so critical.
And attitudes and expectations among the U.S. public are actually brightening.
Consumers' survey of current conditions just jumped to its highest reading since 2007, according to The Conference Board—and its early-August survey period included significant global market turmoil.
Crucially, the public's reading of labor market conditions is finally on the mend. For the first time since the crisis, either the same or more consumers since the last survey thought jobs were plentiful, as opposed to hard to get.
For a little color, consider too that Chipotle, the fast-casual Mexican chain, is about to host its first "National Career Day" with a hiring spree aimed to add 4,000 workers.
Bridgewater's Dalio says Fed will ease, not tighten
Would a Fed rate hike last year really have helped along the fragile improvement in these three key parts of the economy?
It's perhaps not a coincidence that both broad employment gains and financial markets have stalled since Fed Chair Janet Yellen this spring began emphasizing the likelihood of a rate hike this year.
Of course, people are frustrated with rates stuck at zero—many Fed officials included. And it's quite possible that slowing global growth will persuade the Fed to postpone the hike until, as billionaire investor Stanley Druckenmiller has said, 2017.
If the U.S. expansion can stay the course while other nations struggle forward, however, it may well be worth the wait.
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07728eff80af0aecb67dff855c218a18 | https://www.cnbc.com/2015/08/25/gold-rises-after-worst-drop-in-5-weeks-on-china-rate-cut.html | Gold coasts along as stocks perk up, possible Fed hike delay supports | Gold coasts along as stocks perk up, possible Fed hike delay supports
Getty Images
Gold steadied on Thursday after suffering its biggest fall in five weeks in the prior session as stock markets recovered, but indications that a U.S. rate hike might happen later than expected kept a floor under prices.
Cheered by Wall Street's rebound, Asian stocks rose led by Chinese markets whose deep tumble this week fed a global rout.
"Gold has been correlated a lot with stock markets in the past couple of days due to the fear globally," said Howie Lee, an analyst at Phillip Futures in Singapore. "It's not surprising to see gold come back off as stocks stabilise."
VIDEO1:3301:33Is the gold bounce over?Trading Nation
was up 0.1 percent at $1,126.65 an ounce by 0602 GMT, after dropping 1.3 percent on Wednesday, its steepest decline since July 20.
Bullion fell to a one-week low of $1,117.35 overnight, taking its losses this week to nearly 3 percent.
U.S. gold for December delivery edged up 0.2 percent to $1,126.40 an ounce.
Providing some support to gold were comments by New York Fed President William Dudley on Thursday that the prospect of a September rate increase looks "less compelling" given the threat posed to the U.S. economy by recent market turmoil.
"The world is in no state to endure a rate hike from the U.S. at this point. It will just cause further collapse in the stock markets," said Lee at Phillip Futures.
Gold is holding above $1,100 support as U.S. rate hike expectations this year slowly shift to December from next month, said Lee. When those expectations were tilted towards September, bullion was closer to $1,000, he said.
Read MoreLooking for a safe haven? Here's why gold won't work
The precious metal is still up nearly 5 percent from a 5-1/2-year low of $1,077 reached in July, but has given up more than 3 percent since touching a seven-week top of $1,168.40 last week.
"Turmoil across global markets did little to bring people back to gold as investors ignored the metal's haven appeal and focused on the prospect of higher U.S. interest rates," ANZ Bank said in a note.
Investors will be eyeing key U.S. data tonight for more clues on the rate hike timing, including a second estimate for second-quarter gross domestic product and weekly jobless claims.
A Reuters poll showed that U.S. second-quarter GDP growth would be revised up to 3.2 percent from the 2.3 percent advance estimate last month.
Other precious metals rebounded from this week's slide.
Spot platinum climbed 1 percent to $986.50 and silver gained 0.6 percent to $14.20. Palladium gained 0.4 percent to $534.50 an ounce after falling to a near five-year low of $518 on Wednesday.
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c4916d30796167ac6d2924e63548d7f8 | https://www.cnbc.com/2015/08/25/markets-latest-china-down-4-europe-set-to-bounce.html | Markets latest: Stocks surge as China cuts rates | Markets latest: Stocks surge as China cuts rates
Our live blog will keep you updated on the latest stock market movements, after China announced new stimulus measures on Tuesday.
The Shanghai Composite closed lower by 7.6 percent earlier in the day, at its lowest level since December 2014.
U.S. stocks jumped at the open and European bourses rallied strongly.
Stay posted to see all the latest market developments.
(App users please click here).
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9c4afc0440b69c79ee2d09cdfc714a56 | https://www.cnbc.com/2015/08/25/oil-is-the-biggest-investing-opportunity-strategist.html | Oil is the biggest investing opportunity: Strategist | Oil is the biggest investing opportunity: Strategist
VIDEO3:5703:57The best dip to buy? Look to oil: Strategist
VIDEO3:4503:45Oil rallies, remains near 6.5 -year lowSquawk Alley
VIDEO1:4801:48Battle for oil dominance Oil
Oil could be the biggest buying opportunity out there now, Ted Izatt, chief strategy officer at SDKA International, said Tuesday.
"My view is that this oil decline is going to represent one of the biggest investing opportunities of our lifetime, of this generation," he told CNBC's "Squawk on the Street."
Oil rallied Tuesday, bringing prices back above $39 a barrel, although still near a 6 ½-year low.
Read More Here's what could trigger the next wave of selling
Izatt said major oil producers, like Saudi Arabia and Venezuela, are going to get hurt by lower prices and will eventually be forced to cut back their output. In the meantime, many U.S. oil companies will be struggling, he said.
"The key to being successful in the coming environment is to understand the credit and the fixed income of these companies to know which ones are going to survive, which ones are going to do the best," he said.
Izatt explained further that investors who start getting involved in companies that seem strong enough to survive (sound balance sheets, for example), "are going to make a lot of money."
Oil pumps and drilling equipment in an oil field in Kern County, where the majority of California's oil and gas production in Shafter, California.Brian Van Der Brug | Los Angeles | Getty Images
Francisco Blanch, head of commodities research at Bank of America Merrill Lynch, said the coming winter months should provide some stability for oil prices.
"We think in the next few weeks we will find the floor and then we will turn higher into the year's end," he told CNBC's "Squawk Alley" on Tuesday.
Read More 3 charts explain how oil is roiling world currencies
In addition, moves by the Chinese central bank and an impending decline in shale oil production should help boost prices, he said.
"I don't see a continuation of the fast inventory buildup we've had over the last few quarters," he said. "I also think that monetary stimulus is still on the way. The Fed could delay the hike in September and we could see a fiscal package from China."
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286eec3b7561103352cfac15c773c27b | https://www.cnbc.com/2015/08/25/summers-see-substantial-risks-of-significant-instability.html | Summers: See substantial risks of significant instability | Summers: See substantial risks of significant instability
VIDEO2:2702:27Is Fed set to make dangerous mistake?Squawk Box
Former U.S. Treasury Secretary Larry Summers said Tuesday that current global conditions that contributed to Monday's selloff represent the type of moment when surprises such as the Asian financial crisis or subprime mortgage bust can occur.
"I'm not prepared to predict that we're in the midst of a crisis," he told CNBC's "Squawk Box." "But certainly the risks feel greater now than they have at moments in the past and I think the orientation of policy, which had been toward resisting overconfidence, now has to again shift toward providing confidence."
Summers said he sees potential for "significant instability" and "substantial risks" associated with current conditions.
Read More Summers: Fed could be making a dangerous mistake
In particular, the increase in volatility to historic levels in the last week after a period of "substantial market tranquility" is cause for concern, he said.
The slowdown in China, its impact on the global economy and commodities markets, general distress in emerging markets, and a disappointing rate of demand growth in industrialized countries have combined to create substantial risk, he explained.
VIDEO0:5600:56Safer path for Fed: Larry SummersSquawk Box
Given the current market turmoil, it would be hard to imagine the prudence of the Federal Reserve raising interest rates.
The central bank has held its benchmark federal funds rate near zero since December 2008. Monday's steep selloff raised new questions about whether the Fed would pull the trigger.
On Monday, Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said in a speech that he still expected liftoff some time in 2015, but did not reiterate his recent comments that he is disposed to begin hiking in September.
Read More Lockhart expects rate hike this year, does not repeat Sept. call
Summers said he understands the argument that the Fed must raise rates to promote financial market stability, but he said it's too risky to do so in the absence of other factors that can create economic growth.
"Today, with the at 40, it seems to me you have a quite different argument," Summers said, referring to a measure of market volatility. "Today the only argument you really have is, well it's uncomfortable to be at zero."
"Well it is uncomfortable in some way, but my fear is that the new reality in an economy where the labor force isn't growing very fast, where productivity growth is slower, where capital goods are much cheaper, where the nature of production has shifted ... you may need those kinds of low interest rates to be able to maintain a reasonable level of growth."
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645ef3b7b54279227f81443b0b8fa3f6 | https://www.cnbc.com/2015/08/26/china-stock-slide-dents-demand-for-chanel-burberry.html | As stocks fall, China's big spenders pull back | As stocks fall, China's big spenders pull back
Pedestrians cross Russell Street in front of the Times Square shopping mall, operated by Wharf (Holdings) Ltd., in the Causeway Bay shopping district of Hong Kong, China.Xaume Olleros | Bloomberg | Getty Images
One of Hong Kong's busiest shopping streets winds past the Times Square center, under slick signs for brands like Mont Blanc, Cartier, Gucci and Burberry.
But inside the towering luxury mall, the hum of the crowds below fades into the quiet of rows of mostly empty boutiques.
A sales attendant greeted a few people outside a Chanel shop. "I'm sorry, you have to queue," she said, waving her hand toward a seemingly imaginary line of shoppers. But few people entered the store on what would usually be a bustling weekend shopping day.
Boom times for luxury in China are largely over, after the recent stock market rout and currency devaluation, compounded by an already slowing economy and a government crackdown on lavish gift-giving. The effect of those woes on Chinese shoppers — who make up as much as a third of global spending on high-end goods — has rattled both investors and global luxury brands.
VIDEO4:2404:24PBOC has done a respectable job: JPMorgan
The quieter scenes at Times Square and other luxury department stores in Hong Kong paint a stark contrast to the fevered spending of recent years, when young, upwardly mobile Chinese seemed to have insatiable appetites for Chanel handbags and Hermès scarves.
After growing by double digits in the last decade, spending on luxury goods in China contracted for the first time last year to about $18 billion, shrinking 1 percent, according to the consultancy Bain & Company.
On top of the market turmoil, moves by the Chinese government to devalue the renminbi and concerns over further rounds of devaluation cast a new pall on the luxury marketplace.
More from the New York Times:
Luxury shoppers in London seemed unfazed by market free fall As growth slows, China pins hopes on consumer spending As tourism record is set, New York City sees surge in Chinese visitors
"This is going to hit hard," said David Friedman, the president of Wealth-X, a luxury intelligence firm. Mr. Friedman, who is based in New York, added, "It's the straw that breaks the camel's back for luxury brands that looked at the Chinese consumer as a driver of their revenue growth."
"Is the Chinese consumer still incredibly important to luxury brands? The answer is absolutely yes. But is the Chinese consumer over the next several years going to be the same economic juggernaut of consumption for these brands? The answer is no."
These jitters stem from how disproportionately global luxury brands have leaned on China for growth. Greater China drives as much as 25 percent of sales at Burberry, and 20 percent of sales at Prada, according to estimates by Exane BNP Paribas. The Swatch Group, whose brands include Omega, Harry Winston and Balmain, derives as much as 35 percent of its sales in mainland China, Hong Kong and Macau.
Those percentages would be even higher if they took account of all the luxury goods that Chinese tourists snap up overseas, where items are often cheaper than in Beijing or Shanghai, where shoppers must pay import duties. According to Bain, nearly half of Chinese luxury spending occurs outside China.
A weaker renminbi would make it more expensive for Chinese consumers not just to buy foreign luxury products in China, but also to travel overseas to cities like New York or Milan to buy luxury goods. A shakier economy and market turmoil back home would damp travel, as well as demand.
"Things are becoming more expensive, people are traveling less, and market turmoil is causing people to retrench and think about their luxury spending," said Simeon Siegel, a senior equity analyst in specialty retailing and luxury for Nomura Securities. "So you walk down Fifth Avenue, and you see emptier stores."
Still, it is important to keep the effects of the market rout and devaluation in perspective, said Luca Solca, head of global luxury goods at Exane BNP Paribas. According to simulations run by Mr. Solca, a 5 percent devaluation of the renminbi would push sales down less than 1 percent at most global luxury brands he tracks, including Burberry, Hermès, Prada, Louis Vuitton and the Swatch Group.
Even a 20 percent devaluation of the renminbi would hardly make a dent of 5 percent in those companies' sales, according to Mr. Solca's calculations.
Read MoreRetailers are already gunning for your Christmas cash
"It is often the case that markets react harshly to major surprises, a sort of 'Shoot first, ask questions later' approach," Mr. Solca said. "This looks like financial turmoil, not turmoil in the real economy. If it continues to grow, though, it will at one point have an impact on the real world, too."
Zhou Ting, director of the Fortune Character Institute, a research firm based in Shanghai that publishes the annual China Luxury Report, said she expected Chinese luxury tourism to continue despite the market uncertainties and the renminbi's drop in value.
Chinese travelers are drawn overseas partly by a hunt for value, she explained. Because of high tariffs, a Furla luxury handbag her firm examined recently cost $310, or 1,980 renminbi, with the steepest discounts available in China, but it sells for just a third of that price at the Leonardo da Vinci airport in Rome.
"The new yuan depreciation is not nearly enough to deter the very strong urge of Chinese shoppers to buy luxury goods overseas," she said.
At the Tai Koo Li mall in central Beijing, a gleaming expanse of luxury retailers including Lanvin, Versace and Vera Wang, several shoppers shrugged off the recent currency moves.
Xu Zijin, 19, a sophomore at a university in California, said she normally bought luxury goods in the United States because "the price is always very high in China," and she would continue to do so.
For some brands, like Coach, which manufactures a majority of its handbags in China, a weaker renminbi could even be a positive, Oliver Chen, a retail analyst at the Cowen Group, said in a recent report. Gross margins at Coach, for instance, would benefit from lower input costs — especially lower wages for Chinese workers — if currency rates remained at their current level, Mr. Chen said.
Andrea Shaw Resnick, head of investor relations and corporate communications at Coach, said it was still too early to project the impact of the weaker renminbi on sales trends.
Still, "we've been managing through exchange rate fluctuations for many years," Mr. Resnick said. "Importantly, our sourcing of both finished goods and raw materials in the region provides some degree of natural hedge," he said. "Of course, we'll continue to monitor the situation closely."
Ultimately, the future of Chinese luxury spending — and who is able to attract more of it — hinges on longer-term shifts in global currencies, as well as economic growth back home.
The eurozone and Japan have been bolstered by an influx of Chinese tourists, thanks to the weakness of their currencies, which have each fallen almost 10 percent against the renminbi over the last 12 months — even after the recent devaluation.
The dollar, on the other hand, has strengthened against major currencies over the last year, and it is up about 4 percent against the renminbi from 12 months ago, despite the recent devaluation. The strong dollar is weighing on tourist spending in the United States; Macy's recently blamed dwindling tourism dollars for lackluster earnings in the second quarter.
"The Europeans, the Chinese tourists, the Brazilian tourists around the world, they're just not coming to America," Macy's chief executive, Terry J. Lundgren, told CNBC last week. "And the strength of the dollar is impacting that."
Read MoreIn rural China, shoppers go online - with a little help
Mika Tsuruta, 25, an employee at the Japanese handbag brand Samantha Vega, sat smoking by an enormous robot outside the Times Square mall. She usually works in Tokyo but was sent to the retailer's Hong Kong store to train the staff in customer service.
During her time in Hong Kong, she has noticed Chinese customers looking for a less expensive alternative to the big-name luxury brands, she said. Samantha Vega fits the bill — a handbag from the Japanese retailer sells for about 2,200 Hong Kong dollars (around $280), a fraction of the 25,000 Hong Kong dollars (nearly $3,225) a Chanel flap bag can fetch.
"They say they are looking for something good, something cheaper," she said.
Leo, an 18-year-old student from Jiangsu, in eastern China, about to start university in Hong Kong, walked around another lavish shopping center, the Landmark. He took photos through the store window of S.T. Dupont, gawking at the gold-embellished pens and lighters on display, and at ads featuring members of the British royal family.
Leo, who wished to be identified only by his English name, insisted that the point of his trip to the mall was not to shop. The state of the economy and the currency devaluation worried his family, he said.
"It means I need to spend more money on my studies," he said. "We don't want to buy too much."
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f624f7db5ed46f8e416b776575815155 | https://www.cnbc.com/2015/08/26/chinas-hard-landing-has-it-been-priced-in.html | China's hard landing: Has it been priced in? | China's hard landing: Has it been priced in?
The sharp multi-day selloff in Chinese stocks and slowdown in the world's second-largest economy have forced fears of a Chinese "hard landing" to the front and center of investors' minds.
Views are divided on the longer-term growth prospects for China, but in the short-term, a "hard landing"—a steep slump in economic growth or even a recession—has become some market participants' base-case scenario.
Luo Yunfei | ChinaFotoPress | Getty Images
"We are not surprised, having been well-below consensus on China for some time. Indeed, the risk that our downside scenario materializes—that China's economy will suffer a hard landing—appears to have increased appreciably and is now close to being our baseline assumption," Clare Howarth, head of Asia-Pacific macro services at Oxford Economics, said in a research note this week.
"This would mean average GDP growth closer to 4 percent over the next five years rather than our baseline forecast of 5.8 percent."
China's official target is for 7 percent growth in 2015. Data out in July showed GDP growth beating expectations in the second quarter, rising 7 percent from the same period a year earlier. This spurred some analysts to say "I told you so"—and others to cry foul.
Looking beyond the official numbers gives clear evidence of a sharp slowdown in China, with sales of consumer goods such as cars and smartphones falling, as well as very weak trade data and slowing industrial production growth.
"The authorities are responding—but they have not so far announced the kind of massive stimulus package that followed the global financial crisis. If China is unable to prevent a continued rapid slowdown, the implications will be felt around the world," Howarth told CNBC.
A hard landing in China and shockwaves emanating from broader emerging markets represent "the biggest downside risks" to European equities, according to strategists at UBS.
UBS's current forecast for China implies a deceleration in growth from 7.4 percent in 2014 to 6.8 percent this year and 6.5 percent in 2016.
"While China is losing steam as a global engine of growth, it should not turn into a major disturbance for the world economy," UBS analysts led by economist Reinhard Cluse said in a research note this week, warning that "more negative scenarios have to be taken seriously."
He added that European equities were pricing in a further sharp slowdown in China and emerging market economies, leading to a mild recession in Europe in 2016 and a steep fall in U.S. growth rates.
"We suspect that this is too pessimistic a view," Cluse said.
The pan-European STOXX 600 is trading around 10.6 percent lower on the month, but has gained roughly 3.5 percent since the start of 2015.
The Shanghai Composite, meanwhile, is down over 20 percent since the start of August and 9.5 percent since the beginning of the year.
The recent wave of de-risking has been painful for markets, but for some longer-term investors, China's fundamentals do not indicate crisis.
"At this juncture, it is also helpful to remind ourselves that China is undergoing a major rebalancing of its economic makeup. As a residual of this process, it is clear to us that there will be certain growth headwinds," said Neuberger Berman's China equity fund manager, Frank Yao.
He forecast "more sustainable, quality-oriented growth" over the longer term.
"Against this backdrop, there has not been a material change to our views at the company-specific level," Yao added.
Similarly, chief investment officer at Franklin Templeton Investments, Michael Hasenstab, has retained his investment thesis for Asia following the major moves in markets.
"When we look at how much market panic there has been, one might be under the impression China is headed full speed into full-blown recession," he said.
"That is not our call. While we do expect moderation in China's growth, we continue to see it as healthy and an inevitable normalization for an economy of its size."
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6b8edafdee69f8d6dea624bee453e042 | https://www.cnbc.com/2015/08/26/cvs-signs-deal-with-telehealth-companies-for-six-states.html | CVS teams with telehealth trio to boost access to MD care | CVS teams with telehealth trio to boost access to MD care
VIDEO0:3600:36CVS to provide more healthcare services
The doctor is "out"—but he can still see you.
Pharmacy giant CVS Health on Wednesday announced it will work with three leading telehealth companies to expand patients' access to doctors, who will be able to provide consultations remotely via the Internet or over the phone.
Those companies, American Well, Teladoc and Doctor On Demand, will begin receiving referred CVS customers, as well as referring their own customers to 150 CVS walk-in clinics, in six states by the fourth quarter, according to the pharmacy chain.
Source: MinuteClinic
The deals aim to expand upon a successful pilot program that CVS recently ended in a handful of its 1,000 MinuteClinics. They also underscore the company's continued push to position itself as a resource for consumers seeking broader health-care services, and not just medications.
In addition, they highlight how telehealth services are becoming more commonly used by patients—and embraced by insurers, employers and health-care systems—as a potential way to provide quick care at lower cost.
Advocates say they're able to deliver basic care for less by reducing the number of physical office visits required, instead relying on a patient's computer, tablet, smartphone or landline to act as the virtual "office."
Part of CVS' decision to enter telehealth stems from an expectation that there will be an increase in patient demand for health care in coming years, due to several factors. These include the expansion of insurance coverage through the Affordable Care Act, an aging population, the "epidemic" of chronic disease and "the primary physician shortage."
"I think obviously we're at the beginning here," said Dr. Andrew Sussman, executive vice president and associate chief medical officer for CVS Health, and president of its MinuteClinic division.
But, "we're certainly eager to increase access," he said. "We actually think [telehealth] is going to be important in the health system in general."
"I think this is just another piece of the puzzle. It's trying to help with access that leverages technology, and provides care that is high in quality and low in cost," Sussman said.
CVS operates 7,800 retail drug stores nationwide, of which 1,000 have walk-in clinics. The company also acts as a pharmacy benefits manager for 70 million plan members.
Its previous foray into telehealth, which ended in June, was an 18-month pilot program in 12 MinuteClinics in California and Texas. About 14,000 customers ended up receiving online consultations from an off-site clinician.
Out of 1,700 patients who were surveyed, 95 percent were highly satisfied with the quality of care they received, the ease of using the technology, and the timeliness and convenience of the care, according to CVS.
"In addition, one-third of patients indicated they preferred a telehealth visit to a visit with a clinician in the same room," the company said.
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Sussman said CVS will soon announce which states will offer the telehealth services for each of the companies participating in the deals announced Wednesday.
The program will have three main components.
Existing CVS customers who use CVS Health's online site will get access directly to the telehealth companies, where they can receive an online consultation with a doctor.
Also, "There would be times where one of those telehealth patients needs something actually done that requires physical contact," such as obtaining a throat culture or examining inside their ear, Sussman said. In those cases, patients would be referred by the telehealth companies to a CVS MinuteClinic.
The third opportunity would allow a nurse practitioner in a CVS clinic to consult with a physician via the telehealth services, Sussman said.
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Adam Jackson, CEO and co-founder of Doctor On Demand, called the arrangement "a pretty effective two-way referral system" which will help his company expand its business.
Jackson also said that "the fact that CVS has vetted Doctor on Demand's patient app experience and clinical quality standards enough to refer its valued patients to us is very validating, not only to our business, but to the burgeoning telehealth sector as a whole."
"When a respected brand like CVS, which is synonymous with quality, enters a sector, it can only be a good thing for that sector," he said.
Dr. Roy Schoenberg, chief executive of American Well, said the deal with CVS Health comes at "an inflection point in this technology," which effectively puts a doctor in a patient's home via an online app.
"It's an acknowledgement of a booming reality," said Schoenberg, who noted that American Well saw 1,100 percent growth in patient visits last year, and that 2015 "seems to be significantly more bullish." American Well has doubled its revenue in the past two years, according to the company.
"Increasingly, Americans understand that there are simpler ways to interact with the health-care system," he said. "Telehealth is going to play an enormous part in the health-care system."
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Jason Gorevic, CEO of Teladoc, said the deal represents an opportunity to expand the company's business into the "direct-to-consumer" market, after having been embraced by health plan clients and employers.
"It's a distribution channel for us to get to consumers directly," Gorevic said. "Of course, CVS has a tremendous platform to do that."
"We see this as the beginning of a much larger opportunity to work with CVS to bring telehealth to the market, in multiple facets," he said.
The American Medical Association in June tabled a discussion of proposed ethical guidelines for telemedicine, after a delegate said a proposal could conflict with the Texas Medical Board's policy of requiring an initial face-to-face visit with a physician, or an initial visit using a telecommunications device if the patient is "in a health-care setting with another provider physically present," ModernHealthcare.com reported at the time.
The Texas Medical Board, which Teladoc has filed a lawsuit against, says it is concerned that the lack of close interaction between a patient and a provider can lead to inadequate care.
"No one would think if they showed up at their doctor's office they would go back to a room, have the doctor stand on one side of the door, they would stand on the other, they would tell the doctor their symptoms and the doctor would slip a prescription out from under the door. No one would think that was good care," Mari Robinson, executive director of the board, told NPR Radio in a report on the dispute. "That is exactly the same as doing it over the telephone or over some system where a physician can't get objective diagnostic information."
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56a6464b535fb8fbb4e515aef755fb04 | https://www.cnbc.com/2015/08/26/es-after-worst-day-in-5-weeks.html | Gold falls for 4th day as US data boosts stocks, dollar | Gold falls for 4th day as US data boosts stocks, dollar
AP
Gold eased on Thursday, headed for its biggest weekly rout since March, as upbeat U.S. growth and jobs data drove up stocks and the dollar, though uncertainty over the timing of a U.S. rate rise held losses in check.
was down 0.2 percent at $1,122.68 an ounce after seeing its biggest down day in five weeks on Wednesday. U.S. gold futures for December delivery finished down $2 an ounce at $1,122.60.
This week's slide in gold prices has eroded nearly all of last week's gains.
VIDEO1:4701:47Futures Now: Gold slides Futures Now
U.S. stocks soared and the dollar rose after data showed the U.S. economy grew faster than initially thought in the second quarter and jobless claims fell more than expected last week. European stocks extended gains to 3.4 percent.
"The data came in above expectations, and it's really going to be down to the wire for the rate hike," ING commodities analyst Hamza Khan said. "It's not making the picture for gold any clearer."
A U.S. Federal Reserve policymaker said the case for an interest rate increase next month seemed "less compelling" than it was a few weeks ago.
"We're seeing some stability return to equities markets, that's pressuring gold," said Phillip Streible, senior market strategist at RJO Futures in Chicago.
Gold tends to benefit from ultra-low rates, which cut the opportunity cost of holding non-yielding bullion while boosting the dollar.
Read MorePrecious metals tumble on dollar; investors monitor China, Fed
Bullion is still up nearly 5 percent from July's 5-1/2 year low of $1,077, but has given up nearly 4 percent since touching a seven-week peak of $1,168.40 last week, hurt by a rebound in the dollar and other assets.
Silver was up 2.2 percent at $14.42, rallying after the previous day's drop to a 6-year low stoked bargain-hunting. Palladium was up 5.3 percent at $560.50 an ounce after setting a five-year low on Wednesday. Platinum was up 1.5 percent to $992 an ounce.
"Positioning on Nymex suggests that weakness had initially been driven by aggressive shorts while exchange-traded fund liquidations added to the pressure," UBS said in a note.
"With the exception of gold, palladium now has the leanest positioning within the precious metals complex. This suggests that while sentiment remains frail and charts continue to look worrisome, the market may now be nearing a bottom."
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9d151d1ab62b92ad8c9326d8956d386e | https://www.cnbc.com/2015/08/26/heres-how-to-pick-opportunities-in-indias-sell-off.html | Here's how to pick opportunities in India's sell-off | Here's how to pick opportunities in India's sell-off
Getty Images
With Indian equities dragged into the emerging market bloodbath, the first impulse may be to sell, but here's one bank's advice on how to identify opportunities amid the downturn.
"The easiest way to identify beneficiaries of such a market fall is to look at companies which benefit from a fall in commodity prices or a lower rupee," said Nomura analysts led by Prabhat Awasthi.
The recent bout of global risk aversion, triggered by concerns over an impending U.S. rate hike and China's economic slowdown, has had a knock on impact on commodity prices, equities and emerging market currencies - and India hasn't been spared.
The benchmark BSE Sensex has declined almost 9 so far this month, hitting a one-year low earlier this week. Meanwhile, the rupee has depreciated over 3 percent against the greenback over the same period.
The fall in India's stocks has been rather indiscriminate across sectors, said Awasthi. Following the recent pullback, the Sensex is trading at a one-year forward price-to-earnings ratio of 14.8 – a 10 percent discount to its five-year average, according to Nomura.
Nomura highlights five stocks that have become fundamentally attractive but also have earnings upside if the current macro backdrop of a weaker rupee and lower oil prices were to stay.
The bank likes Asian Paints, Hindustan Unilever, HCL Tech, Mahindra & Mahindra and Ultratech Cement, predicting upsides of 2.1 percent, 17.8 percent, 21.4 percent, 29.3 percent and 18.1 percent for the stocks respectively over the next 12 months.
Awasthi isn't the only strategist advising investors to dip their toes back into the Indian market following the recent pullback.
Sanjiv Duggal, head of Asian and Indian equities at HSBC Global Asset Management, believes this is an opportune time for investors with a three-to-five-year horizon.
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"Markets have corrected, the rupee has weakened, so it's throwing up an opportunity to deploy some money for the medium to longer-term," said Duggal, who manages three funds at the bank - the HSBC Global Investment Funds: Asia ex Japan Equity, HSBC Global Investment Funds: Asia Pacific ex Japan Equity High Dividend and HSBC Global Investment Funds: Asia Pacific ex Japan Smaller Companies.
There are two main catalysts that could drive Indian equities in the coming months, said Duggal.
The first is the passage of the goods and services tax (GST) bill that seeks to replace the present regime, where myriads of federal and state tax levies push up the cost of products and services, with a national sales tax. The government has set an April 2016 deadline for rolling out the GST.
"People have been waiting for this for a few years, so when it finally happens, that could be a game changer," said Duggal. "It widens the tax base in India, which is good for a fiscal point of view. It will help bring in foreign investment as well."
The other catalyst is a recovery in corporate earnings, driven by a pickup in domestic investment as the government clears stalled projects in areas such as infrastructure and manufacturing.
"Indian earnings have gone through a bit of downturn as the economy slowed down, so earnings growth for the past few years has been very disappointing, so we think now things will revert back to mean," said Duggal.
"On the back of that we think markets should give you on average 15-20 percent per annum over the next 3-5 years."
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b5119ec6090311a24a704375a5601e86 | https://www.cnbc.com/2015/08/26/katrina-anniversary-will-new-orleans-levees-hold-next-time.html | Katrina anniversary: Will New Orleans levees hold next time? | Katrina anniversary: Will New Orleans levees hold next time?
New Orleans' levees are better than they were 10 years ago, but maybe not good enough to fend off another Katrina.
The reinforced levee stands in the Lower Ninth Ward, on July 22, 2015, in New Orleans.Melanie Stetson Freeman | The Christian Science Monitor | Getty Images
The city's redesigned levees and floodwalls should be far more resilient against storms than the ones that broke open and let Hurricane Katrina flood nearly the entire city a decade ago. But civil engineers warn that much more needs to be done to keep New Orleans safe, and they caution that people should not assume the levees will protect them from a big storm.
Hurricane Katrina killed more than 1,800 people and caused an estimated $75 billion in damage after it made landfall 10 years ago this week. During the storm, several of the levees shielding New Orleans broke, flooding nearly 80 percent of the city in up to 15 feet of water.
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Soon after, Congress authorized the U.S. Army Corps of Engineers to spend $14.6 billion to improve the levees and other structures designed to protect the city from extreme storms.
At the time, Congress told the Corps to design the system to withstand a storm that has a 1 percent chance of happening every year—the so-called 100-year storm. That standard would allow people in New Orleans to qualify for the U.S. government's National Flood Insurance Program, which requires that policyholders live behind adequate flood protection structures.
But experts point out that the 100-year standard is not a safety benchmark at all, but a statistical guideline used most commonly by insurers to estimate the costs of insuring property against flooding damage.
If you looked at the NOAA data in 1965, Katrina would have looked like a 1,000-year event.Ed Linkdirector, Interagency Performance Evaluation Task Force
"It is a number which is based on protecting real estate, not protecting lives, and that is an incredibly important distinction," said Greg Baecher, a professor of engineering at the University of Maryland and a member of the Interagency Performance Evaluation Task Force, a group started by the Army Corps of Engineers in 2005 to investigate the levee systems built before and after the hurricane.
The 100-year threshold is also a statistical guess based on data on past storms and assessments of whether they'll occur in the future. That means the models change every time a new hurricane strikes. The numbers being used as guidelines for construction are changing as time passes.
The standard also does not mean—can't possibly mean—that a 100-year storm will occur only once per century. It means that such a storm has a 1 percent chance of happening in any given year. So for example, it's technically possible for several 100-year floods to occur in just a few years, although it's highly unlikely.
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Needless to say, there's disagreement among researchers as to whether Katrina was a 100-year storm, or something else.
"If you looked at the NOAA data in 1965, Katrina would have looked like a 1,000-year event," said Ed Link, director of the Interagency Performance Evaluation Task Force (IPET).
"Fast forward to 1979: NOAA redid the analysis based on a lot more data—and remember it wasn't until the 1960s that we had weather satellites," Link said. "Katrina in 1979 would have been more like a 1-in-300 event."
When the National Oceanic and Atmospheric Administration redid the analysis again in 2005, Katrina was more like a 100-year event, Link said.
But given that the 100-year standard comes with so much uncertainty, what are the alternatives? One alternative measure is the Saffir-Simpson scale, commonly used by meteorologists to rate hurricanes. Storms receive ratings between 1 and 5, in order of severity.
Read MoreHotelier: How we rebuilt New Orleans
But Saffir-Simpson ranking is based on wind speed, not the height of the storm surge, which is what made Katrina so deadly. Katrina was rated only a Category 3 when it made landfall, but the size of the storm meant the surge was significantly higher than it normally would have been for similarly rated events.
In IPET's analysis, Hurricane Katrina was more like a 400-year event, considering its capacity to create a surge, Link told CNBC.
"Katrina created the highest level of storm surge and waves that North America has ever seen," he said. "Hurricane Camille, for example, was a Category 5 hurricane, and yet it did not create the kind of surge Katrina created."
These statistical models will continue to evolve in the future, and may undermine confidence civil engineers have in the levees designed to meet standards that have been revised.
Having said that, the new system is a considerable improvement over what was in place when Katrina struck.
For example, the levees since are in the process of being armored to help prevent the erosion that had caused many of them to fail 10 years ago. The IPET report noted that at least half of the direct damage from Katrina resulted from those breaches. The new levees are much stronger than the ones that failed during the storm, said Bob Jacobsen, a Baton Rouge, Louisiana-based engineer who has worked with local levee boards—the state-created agencies responsible for overseeing the day-to-day monitoring and maintenance of the system.
Jacobsen told CNBC that the new levees were built with better techniques for compacting the clay that makes up the levees, and some of the structures are being armored to prevent them from eroding, especially if water spills over the top of them.
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They are also higher, though by varying degrees. Some will likely need to be raised further—due to factors both natural and man-made, New Orleans is sinking, and much of the city is already below sea level. The levees and other structures will require frequent monitoring and occasional strengthening.
If all elements in the new design perform "as advertised," Jacobsen said, the structures should be able to withstand water levels from a 500-year event without collapsing or letting excessive amounts of water spill over the wall.
But he also noted that trying to prepare for disasters relies on "scientific guesstimates," and that more improvements are needed.
Ultimately, he said, the levees are designed only to protect property and reduce the potential damage to the city.
"An evacuation is still the only way to secure people's lives," Jacobsen said. "If there's a big storm coming, you get out."
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f7eb6e46dea7c9c4625194608fbdf1a3 | https://www.cnbc.com/2015/08/26/shanghai-shares-close-up-54-reclaims-key-3000-mark.html | Asian shares follow US higher; Shanghai retakes 3,000 mark | Asian shares follow US higher; Shanghai retakes 3,000 mark
An investor watches the stock market at a stock exchange hall in Shanghai, China.ChinaFotoPress via Getty Images
China's Shanghai Composite index closed up 5.4 percent to reclaim the critical 3,000 mark, tracking the upbeat sentiment across the region underpinned by Wall Street's biggest one-day gain since 2011 overnight.
According to Reuters, the Shanghai bourse posted its biggest one-day percentage gain in nearly two months.
After six consecutive days of declines, the led gains with a rise of 4.24 percent on Wednesday while the blue-chip and S&P 500 climbed 3.95 and 3.90 percent respectively. The S&P 500 emerged out of correction territory on Wednesday, after sinking into correction during Monday's selloff.
"One reason was that [New York Federal Reserve President] William Dudley, an influential voice on the Federal Open Market Committee (FOMC), said in a speech that a rate hike in September seems 'less compelling' in light of market volatility and foreign developments," analysts at Mizuho Bank wrote in a note.
"Secondly, U.S. durable goods and non-defense ex-aircraft capital goods both outperformed expectations, suggesting that investment momentum has picked up," they added.
Mainland shares rise
China's turbulent stock markets closed up for the first time in five trading sessions, with the benchmark index swinging sharply higher in the final 30 minutes of trading to settle at 3,085.4.
Among China's other indexes, the blue-chip CSI300 index and the smaller Shenzhen Composite closed up 6 and 3.3 percent, respectively.
"Technically, the stock market should have reached the bottom... Now that the People's Bank of China (PBOC) has cut interest rates and reserve requirement ratio (RRR), people will think that there's some kind of support from the government and since people have accumulated a lot of cash, they start to bottom fish," Arthur Kwong, head of Asia Pacific equities at BNP Paribas Investment Partners, told CNBC Asia's "Squawk Box."
Meanwhile, Willie Chan from Maybank Kim Eng attributed the day's gains to investors pinning their bets on a delayed interest-rate hike by the Federal Reserve.
"Today's market moves are mainly due to markets expecting the Fed to delay [its] interest rate hike. Before this, people were expecting next month but now people think it's going to be December. Judging by how the dollar moved over the past 2-3 days, I think markets are expecting that already," said the Singapore-based regional strategist.
Read MoreChina market chaos blamed on exodus of regulatory 'turtles'
Insurers were among the sectors which rose by the daily limit of 10 percent, while financials such as Bank of China and China Citic Bank closed up 6.3 and 10 percent, respectively.
Industrial & Commercial Bank of China (ICBC), the world's largest bank by assets, reversed losses to advance 4.9 percent ahead of its results. Agricultural Bank of China and Bank of Communications, also due to announce earnings on Thursday, rose 5.3 and 7.8 percent, respectively.
PetroChina, which has the heaviest weighting of any Chinese company in the Shanghai index, pared losses to close up 2.3 percent, while Sinopec shares rose 3.9 percent despite posting a 22 percent fall in first-half profit.
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Nikkei rises 1.1%
Equity markets in Japan were on a tear, with the benchmark posting a broad-based rally and the Topix index surging 1.5 percent.
Banks were in demand; Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial closed up more than 2 percent each.
Export-oriented stocks also attracted hefty buy orders. Toyota Motor closed up 1.5 percent on the back of news that it has reopened its Tianjin operations ahead of schedule, while Sony and Canon elevated 3 and 0.9 percent respectively. Consumer staples such as Kikkoman also benefited from renewed weakness in the yen, up 5.9 percent.
Meanwhile, Bank of Japan (BOJ) Governor Haruhiko Kuroda reaffirmed his belief in the central bank's 2 percent inflation target, reiterating that the goal can be achieved next year despite the continued drop in global oil prices. The Japanese central bank expects inflation to hit 2 percent during the April-September first half of next fiscal year, but many analysts see the goal as a tall order.
ASX jumps 1.3%
Australia's S&P ASX 200 index headed north on the back of a pick-up in buying across a majority of sectors.
Australia and New Zealand Banking was the star performer in the banking space, up 1.8 percent. Westpac leaped 1.2 percent, while National Australia Bank and Commonwealth Bank of Australia bounced up 0.5 and 0.4 percent, respectively. Insurer QBE surged nearly 4 percent.
Stronger oil prices also lifted energy counters, with Woodside Petroleum and Oil Search rising 1.7 and 3.2 percent, respectively.
On the earnings front, shares of financial services group Perpetual and clothing retailer Billabong charged up 6.1 and 2.4 percent respectively, following upbeat corporate results.
Kospi gains 0.7%
South Korea's Kospi index settled at a one-week high, a day after posting its biggest single-day rise in two years.
Bargain hunters swooped in on specific stocks such as chipmaker SK Hynix, which bolstered 6.1 percent. Consumer discretionary names such as AmorePacific and LG Household & Healthcare advanced 5.3 and 6.1 percent respectively, while Lotte Shopping firmed up 5.4 percent.
Blue chips fell out of favor on Thursday, thereby limiting the bourse's advances. Market bellwether Hyundai Motor dropped 2 percent, while steelmaker Posco closed down 1.9 percent.
PSI up 2.2%
Philippine shares closed 2.24 percent higher, with the main index recovering from 16-month lows hit on Tuesday, after government data showed the economy grew 5.6 percent from a year ago in the second quarter, in line with expectations.
The country's central bank said it does not see the need for additional stimulus or immediate change to monetary policy.
"Second-quarter GDP came in above our expectations, with household consumption saving the day. Despite the easing in remittance growth, consumption rose suggesting that the domestic sources of income growth are broadening," a note from ANZ said.
However, ANZ analysts sounded a note of caution: "Yet the persistent failure of the government to speed up its spending is now putting a dampener on total investment growth. The wider contraction in net exports implies that the country has succumbed to the regional trade recession"
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e7be3d88d5e90398de4b11b30889052a | https://www.cnbc.com/2015/08/26/the-worlds-cheapest-emerging-market.html | Revealed: the world’s cheapest emerging market | Revealed: the world’s cheapest emerging market
Bloomberg | Getty Images
If there's one good thing to come out of the emerging market rout, it's cheaper valuations.
The MSCI Emerging Markets Index's 11 percent retreat in local currency terms so far this month has pushed its 12-month forward price-to-earnings (P/E) ratio to 9.4 – a touch below its 5-year average of 10, according to Capital Economics.
The valuation gap between MSCI World Index - which tracks 23 developed markets - and MSCI Emerging Markets is now at its widest point since before the global financial crisis. The MSCI World Index is trading at a forward P/E ratio of 13.9. A higher P/E ratio implies that stocks are relatively pricey compared with earnings.
Read MoreWhy emerging market currencies are collapsing
"Emerging market equity valuations are no longer stretched either in an absolute or relative sense following the summer sell-off," said John Higgins, chief markets economist at Capital Economics.
"Once the recent volatility in global markets settles down, we think that these valuations could rise, leading to some outperformance of EM equities in the months ahead," he said.
So, which is the cheapest market then?
Of all the major emerging equity markets surveyed by the research house, Russia is currently the cheapest on an absolute basis. The forward P/E ratio for the MSCI Russia Index stands at 4.9 – compared with its 5-year average of 5.2.
Capital Economics' findings are based on an analysis of 20 individual MSCI EM country indexes. The MSCI Egypt Index follows in second, with a forward P/E ratio of 7.3; however, it remains above its 4.3 long-term average.
The MSCI China Index is not far off, with a forward P/E ratio of 7.8, 13 percent below its historical average of 9. The MSCI China index has a lower P/E ratio than the Shanghai Composite, the most widely tracked stock index in the mailand. That is because the MSCI index largely tracks Chinese companies listed in Hong Kong, or H-shares, which typically trade at a discount to A-shares – Chinese companies listed in the mainland.
The markets that have fallen furthest below their long-term averages are the Peru, Colombia and Taiwan.
The MSCI Peru, MSCI Colombia and MSCI Taiwan indexes are trading at a forward P/E ratio of 9.4, 11.2 and 9.9 or 32 percent, 25 percent and 22 percent below their 5-year mean, respectively.
VIDEO2:5902:59Tracking the dollar against EMs, G10 currenciesStreet Signs Asia
Mikio Kumada, executive director and global strategist at LGT Capital Partners agrees emerging market equity valuations seem far more reasonable following the recent selloff.
"Valuations have corrected a lot in EMs, China H-shares in particular look attractive now that they're even cheaper," he said.
However, Kumada says he wouldn't go as far as predicting outperformance of emerging market equities relative to their developed market counterparts based on the dip in stock prices.
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e8eaed4986cb6864f9c55ac1ab47a1e1 | https://www.cnbc.com/2015/08/26/wal-marts-holiday-layaway-launches-this-week.html | Wal-Mart's holiday layaway launches this week | Wal-Mart's holiday layaway launches this week
VIDEO0:3400:34The holiday season starts early for WMTBusiness Strategy
Wal-Mart shoppers will be able get a head start on their holiday purchases this year, when the world's largest retailer kicks off its layaway program Friday—two weeks earlier than in 2014.
The timing shift coincides with the launch of the new "Star Wars: The Force Awakens" merchandise, which goes on sale Friday, Sept. 4.
It will also include merchandise tied to the discounter's inaugural "Toy Week" event, designed to drum up excitement in the days prior to the "Star Wars" launch, and give a sneak peak at the holiday's top toys.
The movie franchise's new installment has been widely anticipated by the toy industry, which is leaning on its merchandise to drive sales over the holidays.
Star Wars trading discsSource: Wal-Mart
"Outside of the holiday season, we could be looking at the biggest week of 2015 for toys," said Wal-Mart's Anne Marie Kehoe, vice president of toys.
Making Wal-Mart's layaway service available earlier in the season will ensure that shoppers don't miss out on popular toys that they were hoping to put under the tree, in the event that they sell out, Kehoe said.
She added that although layaway is often associated with big-ticket purchases, Wal-Mart puts more toys on layaway than items from any other department—a trend she attributed to the breadth of its assortment.
Retailers are already gunning for your Christmas cash
Other changes to the retailer's layaway program include a minimum ticket price of $10 per item—down from $15 last year—and a 90-day period for customers to pay—up from 60 days in 2014. An additional 4,500 items will qualify for the service.
There will once again be no cost to set up a layaway account, and the down payment will be the greater of 10 percent or $10. Items can be picked up through Dec. 14.
In addition to the new "Star Wars" merchandise, Wal-Mart will host "Force Friday" events at 2,900 of its stores, where it will give away a limited-edition disc game by Topps.
The following day it will host family events at the same number of stores, where it will give away collectible posters and a children's activity sheet.
"We believe Wal-Mart's decision to pull its layaway program forward, as well as launching its first-ever Toy Week, are credit positives for the company," Moody's Vice President Charlie O'Shea said."We believe these actions signal that in keeping with what has become a tradition, the holiday season will be even earlier and longer this year."
VIDEO3:2003:20Wal-Mart's investments are paying off: Analyst
Wal-Mart is not the only retailer hosting "Force Friday" events. Toys R Us stores will also hold midnight opening specials, at which it will give away limited-edition Lego toys. Its U.S. locations will also open "Star Wars" feature shops at the front of all its stores.
And next Thursday, the company's Times Square flagship will host events ranging from a Light Saber Academy to a costume contest.
The toys themselves will debut to much fanfare, during an 18-hour unveiling on YouTube Sept. 3.
Wal-Mart squares off against Target in a new way
According to The NPD Group, "Star Wars" and "Minions" products should help toy sales continue their momentum in the second half of 2015. In the first half of the year—which typically accounts for about a third of annual toy sales—the U.S. industry grew by 6.5 percent.
The research firm estimates the toy industry will grow 6.2 percent this year, from $18.08 billion in 2014.
"With this kind of sales performance, 2015 could be one of the best years the U.S. toy industry has seen in well over a decade," NPD's Juli Lennett said last month.
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634e313cfa8e358ca988c3deba7a9c1d | https://www.cnbc.com/2015/08/26/why-the-wednesday-morning-tech-rally-scares-mark-cuban.html | Why the Wednesday morning tech rally scares Mark Cuban | Why the Wednesday morning tech rally scares Mark Cuban
Mark CubanMelody Hahm | CNBC
Stock markets opened to another unpredictable day of trading Wednesday, with Netflix, Google and Amazon leading a rally in shares of major technology stocks. But while some saw the rebound as an opportunity, celebrity investor Mark Cuban said the uptick "made no sense."
"I would really like to buy the market here," Cuban wrote via Cyber Dust, an ephemeral mobile messaging app similar to Snapchat. "But what scares me is that the stocks that are up pre-market are the momentum stocks. It makes no sense because the momentum players should have gotten crushed on the way down."
Netflix, Google and Amazon shares were all up 4.25 percent or better at the market open, with the S&P 500 technology sector up 3 percent as a whole, after getting battered in a global market selloff over the past few days. That should be a good thing for Cuban, who owns "a ton" of Facebook and Netflix—but the dot-com era billionaire and "Shark Tank" star said he's not so sure what's really behind the rally.
VIDEO1:4201:42Happy camper with Netflix and Facebook: Mark Cuban Fast Money
VIDEO2:4202:42Tech leads early rally
VIDEO3:5903:59A 'three stooges' market: Mark Cuban Fast Money
Cuban said Wednesday he "honestly doesn't know" who is buying the stocks or how they are buying them, saying it may relate to computer-algorithm or "algo traders" or exchange-traded funds (ETFs).
"They don't seem to be trading on fundamentals, but rather as part of an equation I'm trying to figure out," he wrote to his followers, called "dusters," on the app he funds and advises. Wednesday marked the third consecutive day that Cuban has publicly questioned popular digital trading techniques like ETFs and high-frequency trading in the wake of market volatility.
Others have more favorable views of "FANG," an acronym for Facebook, Amazon, Netflix and Google coined by CNBC's Jim Cramer.
Read More Cuban takes another jab at high-frequency trading
Analysts at Evercore upgraded shares of Amazon to "buy" in a note Wednesday morning, writing that given traction with Amazon Prime memberships and a large market share of the cloud computing industry, the e-commerce giant was more than 20 percent below the target price. Goldman Sachs also upgraded Google to "buy," noting expanding margins, cost control measures and new transparency efforts as the technology company restructures under the Alphabet umbrella.
Despite his comments, Cuban said he made a trade Wednesday morning: He bought both call and put options set to expire in January 2017. He also said that for liquidity reasons, he thinks it might be safer to "play" currency or oil than stocks.
"I think the market will be higher in January 2017 and I want to take a position here," Cuban wrote in a second Cyber Dust post Wednesday.
Read More Cuban: China fell prey to top mistake an investor can make
—CNBC's Gina Francolla contributed to this report
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f53bf66ea3b79974eb6a48b1f1e7e4e9 | https://www.cnbc.com/2015/08/26/yen-euro-beat-hasty-retreat-as-wall-st-rally-lifts-mood.html | Dollar firms for 3rd day on strong US data, equities gain | Dollar firms for 3rd day on strong US data, equities gain
Getty Images
The dollar rose for a third consecutive session on Thursday, bolstered by data showing a much stronger U.S. economy than had been thought and by gains in global equities, which benefited from improving risk sentiment.
U.S. data showing falling jobless claims and a faster growth rate than had initially been estimated in the world's largest economy underpinned the dollar.
The reports, however, did little to change the view that the Federal Reserve would delay raising interest rates given recent market turmoil and a slowdown in China's economy.
Omer Esiner, chief market analyst, at Commonwealth Foreign Exchange in Washington said the GDP data "underscored the view that the U.S. economy is recovering at a healthy clip and that a rate hike this year by the Fed, despite an uncertain macro-economic backdrop, is not unwarranted."
VIDEO1:4501:45How will yuan moves affect businesses?Squawk Box Europe
Data showed that U.S. gross domestic product expanded at a 3.7 percent annual pace in the second quarter instead of the 2.3 percent rate reported last month. Further brightening the U.S. picture was a fall in U.S. jobless claims to 271,000 last week.
Meanwhile, Wednesday's comments from from New York Fed President William Dudley, a voting member of the rate-setting Federal Open Market Committee, downplaying prospects of a September rate hike helped improve sentiment. Investors unwound recent moves that had lifted both the yen and the euro.
On Thursday, Kansas City Fed President Esther George, who had argued for a near-term rate increase, echoed Dudley's sentiment. She told Fox Business News that central bankers should take a "wait-and-see" approach to tightening policy due to a financial market sell-off and China's slowdown.
John Doyle, director of markets at Tempus Consulting in Washington, said even if the Fed delays raising rates this year, monetary tightening "is still the conversation we're having."
Read MoreCurrency wars: Who's next to pull the trigger?
"We are still moving toward a normalization of U.S. policy, which differs from our trading partners."
In late trading, the dollar was up 0.7 percent against a currency basket at 95.78. The index has risen roughly 2.4 percent the last three days.
The dollar was up 0.74 percent at 121.03 yen, well above a seven-month low of 116.15 yen struck this week. The euro was 0.82 percent lower against the dollar at $1.1244, well below this week's seven-month high of $1.1715.
A recent spike in risk aversion had triggered short-covering in the yen and euro, which are popular funding currencies for carry trades. Such trades involve selling low-yielding currencies to buy higher-yielding assets.
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b216a27ca17294ad32f4cd932594eb6d | https://www.cnbc.com/2015/08/27/4-hedge-fund-managers-offer-advice-on-volatile-market.html | 4 hedge fund managers offer advice on volatile market | 4 hedge fund managers offer advice on volatile market
Bill Ackman at Delivering Alpha 2015 in New York.David A. Grogan | CNBC
With markets gyrating hundreds of points up and down on a daily basis in the past week, many investors are wondering what they should do next.
CNBC asked several hedge fund managers what advice they would give to the average investor during this extreme volatility.
Here is what four of them said:
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d81dea3f52ae6c228fecc2ffd451486f | https://www.cnbc.com/2015/08/27/ackmans-pershing-square-plunges-13-in-august.html | Ackman's Pershing Square plunges 13% in August | Ackman's Pershing Square plunges 13% in August
Hedge fund mogul William Ackman's Pershing Square Holdings portfolio fell 13.1 percent this month, leaving the fund down 4.3 percent for the year, the firm said on Thursday.
The performance numbers cover returns through Tuesday, Aug. 25.
VIDEO1:4601:46Ackman's Pershing Square in red: RTRSFast Money
On Wednesday, Ackman told investors that his firm's roughly 10 percent gain through July had turned into a loss amid the market rout. He did not say exactly how much the fund had lost.
Read MoreAckman posting a loss after market decline
On Thursday, when stocks rose steeply for a second day in a row, several of Ackman's holdings saw strong gains including Valeant and Canadian Pacific, suggesting to some investors that his portfolio's performance may still improve before month-end numbers are finalized next week.
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27db37efbdd0e5c2e15ae757e0768736 | https://www.cnbc.com/2015/08/27/after-hours-buzz-freeport-mcmoran-splunk-gamestop-more.html | After-hours buzz: Freeport-McMoRan, Splunk, GameStop & more | After-hours buzz: Freeport-McMoRan, Splunk, GameStop & more
Trader on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
Check out the companies making headlines after the bell Thursday:
Shares of firearms manufacturer Smith & Wesson jumped about 5 percent after it reported adjusted earnings of 32 cents a share, beating estimates by 10 cents, on $148 million in revenue, which also beat expectations. The company issued strong second-quarter revenue and earnings guidance.
Videogame and consumer-electronics retailer GameStop handed in better-than-expected second-quarter results, with adjusted earnings of 31 cents a share on $1.76 billion in sales. For the current quarter, GameStop said it expects to earn between 53 cents and 60 cents a share, compared with Street projections of 59 cents a share. The stock inched up about 2 percent.
Freeport-McMoRan shares surged about 19 percent after investor Carl Icahn reported a stake in the gold mining company and called its shares undervalued. Icahn said he intends to talk with the company about its capital structure and possible ways to curtail high-cost production operations.
Software designer Autodesk tumbled about 7 percent after it beat earnings estimates, on an adjusted basis, but missed sales forecasts. The company said it expects to earn between 5 and 10 cents a share for the current quarter, which was far below Wall Street's estimates of 23 cents a share. Autodesk's revenue outlook was weak as well.
The stocks of videogame maker Activision Blizzard and airline operator United Continental Holdings will soon become a part of the S&P 500, replacing Pall and Hospira, soon to be acquired by Pfizer. The swap between Activision and Pall, which is being acquired by Danaher, will take place at the close of trading on Friday. The United-Hospira transaction will occur on Sept. 2. Shares of United and Activision were both up about 7 percent in extended trading.
Apparel retailer Aeropostale saw its shares tumble about 1 percent after it reported quarterly results and said comparable-store sales decreased 8 percent.
Splunk, a data analytics firm, saw its shares rise about 3 percent after the company beat on the top and bottom lines and issued strong revenue guidance.
Ulta Salon, Cosmetics & Fragrance shares were up about 4 percent after the beauty products retailer reported earnings and revenue.
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173aaec4c58c36a5dfc140ff0514f3a1 | https://www.cnbc.com/2015/08/27/apple-confirms-rumored-sept-9-event.html | Apple confirms rumored Sept 9 event | Apple confirms rumored Sept 9 event
VIDEO1:4901:49Apple confirms September 9th event Halftime Report
It's official—Apple will hold an event on Sept. 9.
The tech giant on Thursday confirmed the date of the function, which was widely reported in recent weeks. Rumors have swirled about the products Apple could unveil, and some reports suggest it may announce a next-generation iPhone.
Read MoreApple puts big unveiling event on calendar: Report
The event will take place at the Bill Graham Civic Auditorium in San Francisco, which holds about 7,000 people.
Source: Apple
Apple did not immediately respond to a request for comment on the nature of the event.
The function comes as analysts and investors look for an Apple catalyst amid a tough run for its stock. Concerns about slowing iPhone sales and China, a major growth market, have sent its shares about 15 percent lower in the past three months.
The company's shares were up more than 3 percent in afternoon trading Thursday.
Read More5 reasons to buy Apple right now: Analyst
In an invitation sent Thursday, Apple prompted people to ask Siri, the automated assistant programmed into iPhones, for a "hint" about the event. Siri yielded varying responses, like "I bet you were one of those kids who snuck downstairs to open presents."
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d8fb143cef11d0fba64eb587d51c359d | https://www.cnbc.com/2015/08/27/as-chinas-economy-slows-the-world-rethinks-its-plans.html | China falters, and the global economy is forced to adapt | China falters, and the global economy is forced to adapt
Carla Gottgens | Bloomberg | Getty Images
The commodities giant BHP Billiton spent heavily for years, mining iron ore across Australia, digging for copper in Chile, and pumping oil off the coast of Trinidad. The company could be confident in its direction as commodities orders surged from its biggest and best customer, China.
Now, BHP is pulling back, faced with a slowing Chinese economy that will no longer be the same dominant force in commodities. Profit is falling and the company is cutting its investment spending budget by more than two-thirds.
China's rapid growth over the last decade reshaped the world economy, creating a powerful driver of corporate strategies, financial markets and geopolitical decisions. China seemed to have a one-way trajectory, momentum that would provide a steady source of profit and capital.
But deepening economic fears about China, which culminated this week in a global market rout, are now forcing a broad rethinking of the conventional wisdom. Even as markets show signs of stabilizing, the resulting shock waves could be lasting, by exposing a new reality that China is no longer a sure bet.
China, while still a large and pervasive presence in the global economy, is now exporting uncertainty around the world with the potential for choppier growth and volatile swings. The tectonic shift is forcing a gut check in industries that have built their strategies and plotted their profits around China's rise.
VIDEO2:3202:32BHP Billiton's profit tumbles 86%, but shares rise?Street Signs Asia
Industrial and commodity multinationals face the most pressing concerns, as they scramble to stem the profit slide from weaker consumption. Caterpillar cut back factory production, with industry sales of construction equipment in China dropping by half in the first six months of the year.
Smartphone makers, automobile manufacturers and retailers wonder about the staying power of Chinese buyers, even if it is not shaking their bottom line at this point. General Motors and Ford factories have been shipping fewer cars to Chinese dealerships this summer.
It is not just companies reassessing their assumptions. Russia had been turning to China to fill the financial gap left by low oil prices and Western sanctions. Venezuela, Nigeria and Ukraine have been heavily dependent on investments and low-cost loans from China.
More from the New York Times:
China's big spenders pull back, as stock market shudders China turned to risky devaluation as export machine stalled As markets flail, China investigates large brokerage films
The pain has been particularly acute for Brazil. The country is already faltering, as weaker Chinese imports of minerals and soybeans have jolted all of Latin America. The uncertainty over China could limit the maneuvering room for officials to address the sluggish Brazilian economy at a time when resentment is festering over proposed austerity measures.
The weakness in China is even compelling officials at the United States Federal Reserve to think more globally, as they consider raising interest rates. William C. Dudley, the president of the New York Fed, said on Wednesday that a September rate increase looked less likely than it did a few weeks ago.
"The entire world is focusing now on China, watching this crisis unfold," Armando Monteiro Neto, Brazil's minister of development and foreign trade, told reporters on Tuesday in Brasília. "Brazil is already feeling the effects of China's deceleration. If the situation gets worse, the impact will get bigger."
The trouble is, the true strength of the Chinese economy — and the policies the leadership will adopt to address any weaknesses — is becoming more difficult to discern.
China's growth, which the government puts at 7 percent a year, is widely questioned. Large parts of the Chinese service sector, like restaurants and health care, continue to grow, supporting the broader economy. But the signs in industrial sectors, in which other countries and foreign companies have the greatest stake through trade, paint a bleaker picture.
Adding to the worries are recent events like the deadly explosion of a hazardous chemicals warehouse in Tianjin, which has delayed shipments through one of China's biggest ports. Labor protests, already rising, jumped sharply across coastal China last week over unpaid wages at struggling export factories.
The leadership, concerned with maintaining social stability, has been quick to act, making aggressive moves to prop up the stock market, inject money into the financial system, and generally stimulate the economy. But President Xi Jinping doesn't have much experience managing a downturn, and some economists worry that the government is making knee-jerk decisions that will do more harm than good.
Many company executives and global economists say that forecasting China's growth has become so hard that they are hedging their bets for the time being. "This is a complete black art right now," said Tim Huxley, the chief executive of Wah Kwong Maritime Transport Holdings, a large Hong Kong shipping company. "I can't make any long-term decisions based on what is happening today, and so I just keep our fleet running until we get a bit of direction."
The problems have been building for months in areas like commodities and industrials where just modestly slowing growth in China has been having outsize effects.
For more than a decade, prices surged for iron ore, a main ingredient in making steel, as new skyscrapers, rail lines and other infrastructure were built across China. Last year, BHP Billiton shipped enough iron ore each day to China to fill the Empire State Building.
Now, the industry is retrenching in the face of China's weaker prospects and diving commodity prices.
Read MoreChina's 'QT' is the real global economic threat
Vale, the Brazilian mining giant, is racing to unload assets. In Australia, Vale and its Japanese partner, the Sumitomo, sold a coal mine in July for just $1, after it had been valued at more than $600 million three years ago. In Argentina, Vale is trying to sell a potash mine in which it invested more than $2 billion.
The fallout in commodities has been especially painful for emerging markets that depend on sales of those resources.
With Brazil's revenues declining sharply this year, President Dilma Rousseff's government is coming under criticism over the country's dependence on China, which surpassed the United States as the top trading partner in 2009. Brazil's exports to China fell 23.6 percent, to $24.7 billion, in the first seven months of the year from the same period in 2014.
In an editorial on Tuesday, the newspaper O Estado de S. Paulo described Brazil's relationship with China as "semi-colonial," claiming that the country's economy "depends in excess on Chinese prosperity."
Ilan Goldfajn, chief economist at Itaú Unibanco, one of Brazil's largest banks, said he was already forecasting the economy to contract about 2.3 percent this year, without factoring in the possibility of a hard landing in China. "China is the most important risk factor for Brazil," Mr. Goldfajn said.
China was supposed to be the financial savior for Russia.
Last year, Russia signed a $400 billion natural gas deal with China. China would help finance a nearly 2,500-mile pipeline to ship fuel from Siberia. Russia trumpeted that it would eventually sell more natural gas to China than Germany, now its biggest customer.
But the prices that China is willing to pay for the gas are dropping so low that it may no longer be worthwhile to build a pipeline. The Russian energy giant Gazprom has cut its planned capital outlays this year for the first leg of the pipeline by half, Dozhd television reported.
"China is an unclear country for us, opaque," said Aleksandr Abramov, a professor of finance at the Higher School of Economics in Moscow. "We don't know what to expect," he said, adding, "Clearly, the situation will worsen in Russia."
Some of the latest pressures reflect a belated recognition by businesses and politicians that China had been slowing down.
Automobile manufacturers cut their shipments of new cars to dealers by 7 percent in July, compared with a year earlier. Retail sales had not suddenly tanked, said Cui Dongshu, the secretary-general of China's Passenger Car Association, which represents manufacturers.
Rather, too many cars had been sent to dealers' lots in previous months, he said. In other words, manufacturers were slow to see the economy's deceleration and waited too long to throttle back their factories.
"What manufacturers are doing is adjusting inventory levels to the 'new normal,' " said Bill Russo, a former chief executive of Chrysler China, using a favorite phrase of President Xi Jinping of China in recent months to describe an economy that is expanding at a slower pace.
Similar adjustments are taking place around the globe.
For years, Germany has been well positioned to profit from Chinese growth because it specializes in machine tools and other factory equipment. Most important, China acted as a counterweight to the chronically slow-growing markets in Europe.
Now, major German exporters are seeing signs of pressure.
Trumpf says that sales of its signature product, machines that automakers use to cut sheet metal that sell for about 500,000 euros ($566,000) each, have continued to grow in China. But in May and June, sales of less-expensive cutting machines flattened and began to decline. At the bottom of Trumpf's product line, sales have fallen sharply since November for machines often purchased by start-up companies.
How industries and economies ultimately fare will depend on how long the slowdown and how deep the economic woes.
Read MoreGoldman: Don't freak out about a global recession
Demand remains strong at Boeing for its 777-300ER and 787 jets, models that are capable of flights lasting 10 hours or longer, to Europe or North America. Long-haul international travel from mainland China soared nearly 30 percent in the first half of this year compared with the same period last year, Randy Tinseth, the vice president for marketing at Boeing's commercial aircraft division, said during a visit to Beijing on Tuesday.
So far, it has been mixed for technology players. Timothy D. Cook, the Apple chief executive, said on Monday that business had stayed strong in China in July and August. But Meg Whitman, the chief executive of Hewlett-Packard, said in an earnings call last week that China's consumer market for printers and computers was "pretty soft," although demand from businesses was holding up better.
In the end, much of the China story will come down to whether the expectations meet the reality. Andrew Mackenzie, the chief executive of BHP, captured a broader corporate view on Tuesday when he spoke glowingly about China's potential in the decade to come and predicted continued profitability. But he conceded that the country's steel production would most likely "grow a little more slowly," citing a forecast that works out to just 1.4 percent annually — a figure that sounds more like Europe than the formerly go-go economy of China.
A similar realization is taking place in various corners. "We had five fabulous years in China, of course, where we grew strong double-digit, and it has been gradually slowing down," Frans van Houten, chief executive of Royal Philips, the Dutch conglomerate, said on July 27. "I think, going forward, we need to be much more modest on expectations with regard to China growth: That's just being realistic."
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16d7a7c53b98627965f299c58cbcceb9 | https://www.cnbc.com/2015/08/27/burger-wars-one-chain-wants-to-take-mcds-place.html | Burger wars: One chain wants to take McD's place | Burger wars: One chain wants to take McD's place
A Wayback Burgers locationSource: Wayback Burgers
McDonald's may be hesitant to take up Burger King on its offer to make a ''McWhopper,'' but another burger chain has stepped up to the plate. (Tweet this)
Wayback Burgers, a private burger chain based in Connecticut, said on Thursday that it would gladly take McDonald's place in the burger union.
In a statement, Wayback President John Eucalitto wrote, "Wayback Burgers would be happy to take Burger King up on its offer to partner to raise money surrounding International Day of Peace. Our nine patty burger, The Triple Triple, could be a great vehicle to work with. Perhaps we could create the Whiple Whiple. Besides, wouldn't Burger King prefer to partner with a fresh and innovative brand that is on the rise? Either way, we hope to hear from you."
On Wednesday, Burger King ran full page ads in The New York Times and The Chicago Tribune asking archrival McDonald's for a truce.
The peace offering? To join forces and create a blend of the Big Mac and Whopper to be called the McWhopper.
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f98545e98ea09b228d96c7957d5605af | https://www.cnbc.com/2015/08/27/can-korean-stocks-sustain-their-gains.html | Can South Korean stocks sustain their gains? | Can South Korean stocks sustain their gains?
SeongJoon Cho | Bloomberg | Getty Images
South Korean stocks are one of Asia's best performers so far this week but just how long can the market maintain its apparent resilience amid global volatility?
Experts say there are a number of factor to watch for the answer—China, the Federal Reserve, North Korea, local buyers and smartphone sales are chief among them—with the outcome not yet clear.
As of Friday's market close, the benchmark Kospi was 3.3 percent higher for the week after losing more than 8 percent in the first three weeks of August. The gains put the index well ahead of regional peers like Japan, China, Hong Kong and Australia.
"After a really sharp selloff, it's not surprising to see a rebound but whether sentiment returns on a more sustainable basis depends on China's recovery and capital outflows ahead of a U.S. rate hike," remarked Audrey Goh, senior investment strategist at Standard Chartered.
Read More Duty-free nose job? Head to South Korea
Beijing is Seoul's largest trading partner so the former's stock market rout, slowing growth and recent currency devaluation impact Korea, a fellow export-oriented economy. Meanwhile, data earlier this month showed outflows of foreign capital from Korean stocks and bonds rose to a four-year high in July, reflecting concerns about an estimated sovereign debt burden of 35 percent of GDP and a quarterly economic growth rate that lags even bankrupt Greece.
South Korea's Financial Services Commission dismissed the recent outflows this week, saying the levels weren't "alarming."
Aside from China's monetary stimulus—Beijing cut interest rates and its required reserve ratio for banks on Tuesday—and dovish remarks from New York Federal Reserve president William Dudley on Wednesday, gains in Korea's market this week were also fueled by domestic developments.
"National pension funds have been buying for three consecutive days, so that's helped prop stocks up," Jiun Kim, equity strategist at Shinhan Investment Corporation told CNBC. "Valuations are now at historically low levels so the market looks good from that point of view."
The Kospi's price-to-book ratio now stands at 11.6, lower than the Shanghai Composite's reading of 15, according to Reuters. The benchmark Chinese index is seen as one of Asia's cheapest markets thanks to a severe stock rout that started in mid-June.
Moreover, a closely-watched agreement on Tuesday between Pyongyang and Seoul to de-escalate military tensions on Tuesday also lifted sentiment, Citigroup's chief Korea economist Jaechul Chang said in a note. Last week both Koreas exchanged artillery fire across their Western border, pushing the volatility index of the Kospi 200, an index of 200 blue-chip shares listed on Seoul, close to a one-year high.
In the past, a weaker currency has boosted the tech-heavy Kospi but even if expectations of a lower won come to fruition, that won't be sufficient to boost the stock market, Goh noted.
Strategists like Chang believe the Korean currency is headed for more depreciation should the renminbi (RMB) weaken further given Seoul's high trade dependency on China. Citigroup expects the won to hit 1,250 per dollar over the next three months from its current 1,172 level.
The Kospi could be hit by lagging chip, component and phone makers that make up the bulk of the tech exporters due to slower global smartphone growth, Goh explained.
Read More Smartphone market is slowing massively…blame China
Heavy foreign selling may also be a tell-tale sign of further market gloom to come. Offshore equity investors were net sellers for a 16th straight session on Wednesday, the longest streak since 2012, Reuters reported,
Meanwhile, a downgrade by Goldman Sachs was also proof of bearish sentiment. The investment bank changed its view of Asia's fourth largest economy from overweight to market-weight in a report this week, citing the market's high cyclical exposure.
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9336f4656418133e8ed46ad66a771b3d | https://www.cnbc.com/2015/08/27/cheap-yuan-boosts-these-hk-stocks.html | A cheaper yuan actually boosts these HK stocks | A cheaper yuan actually boosts these HK stocks
Jerome Favre | Bloomberg | Getty Images
Hong Kong has been singled out as one of the biggest losers from a depreciating renminbi but while the currency's devaluation has hit the Hang Seng Index hard, there are still plenty of beneficiaries out there.
In a new report, Barclays identified 18 Hong Kong-listed companies with an overweight (OW) or equal weight (EW) rating that are expected to see positive earnings impact from a weaker Chinese currency.
"For most sectors, a weaker renminbi is generally negative for earnings," Barclays analysts said, a fact mirrored by the Hang Seng's 10 percent decline in the two weeks since Beijing devalued the yuan.
Read MoreWelcome to China's new 'managed float' regime
"Only the oil and gas, oilfield services and technology sectors would be expected to see positive earnings sensitivity."
Out of the 18 on Barclays' list, 7 are tech-focused and 7 are oil-related. Among the most high-profile names were Lenovo, AAC Technologies, CNOOC, Sinopec, PetroChina, and China Oilfield Services.
The bulk of balance sheet assets in sectors like technology and oilfield services aren't denominated in reminbi, making them less exposed to the currency, Barclays explained. For example, 61 percent of tech assets were denominated in U.S. dollars or Hong Kong dollars at the end of 2014, compared to only 0.8 percent for the auto sector or 9 percent for consumer staples.
So if the renminbi were to weaken further to 6.5 per dollar, from 6.4 currently, technology companies would get a 1.63 percent boost in 2015 earnings-per-share impact while oil and gas firms would rise 2.4 percent, versus a more than 5 percent slump for the internet and infrastructure sectors.
VIDEO1:4501:45How will yuan moves affect businesses?Squawk Box Europe
"Basically, any Hong Kong company with a cost base in China will benefit from the lower renminbi," said Nicholas Teo, market analyst at CMC Markets.
"But any firm dependent on the Chinese consumer will be disadvantaged because of slowing domestic consumption from the yuan devaluation."
To be sure, Beijing's landmark decision to make its currency more freely floating is making life tough for most export-oriented Asian economies, not just Hong Kong. China tends to be the biggest recipient of exports from the majority of the region and a cheaper renminbi makes other Asian goods more expensive.
But while nations like South Korea, Taiwan, Singapore and Malaysia are all exposed, economists argue Hong Kong has additional vulnerabilities.
Read More'Death cross' danger looms for China stocks
Chinese corporates often come to Hong Kong banks for loans but now a weaker yuan could see borrowing shrink as people prefer to borrow in a cheaper currency, Mirae Asset Global Investments warned in a recent report, noting that Hong Kong cross-border claims are already 20 percent lower from their recent peak.
Indeed, the overall outlook for Hong Kong stocks remains gloomy now that the benchmark index is in official bear market territory. The Hang Seng is more than 20 percent lower since its June 24 peak of 24,470.
But even as stocks regained their footing on Thursday, Teo warned investors not to cheer just yet. When markets go through periods of extreme volatility, a period of flat lining is normal, he said.
"There may be short-term respite but the longer-term outlook remains uncertain."
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a008961d4a5b522190c3a7f2e9c6ef4f | https://www.cnbc.com/2015/08/27/china-expands-debt-for-bond-swap-plan-to-32-trillion-yuan-xinhua.html | China expands debt-for-bond swap plan to 3.2 trillion yuan: Xinhua | China expands debt-for-bond swap plan to 3.2 trillion yuan: Xinhua
China has expanded its debt-for-bond swap programme for local governments to 3.2 trillion yuan ($499.7 billion) from 2 trillion yuan, state news agency Xinhua quoted Finance Minister Lou Jiwei as saying on Thursday.
The programme, which is meant to ease the financing pressure on China's heavily indebted local governments, has been steadily expanded from a trillion yuan to account for the municipal debt load.
A teller counts yuan bank notes in a bank in Lianyungang, China.STR | AFP | Getty Images
As negative economic data mounts, the government is seeking to ramp up financing to local governments in the hope of pushing up government spending and supporting growth.
Local government financing vehicles (LGFVs) ran up debts of $3 trillion as of the end of June 2013, largely to support inefficient building projects, prompting Beijing to crack down on their reliance on shadow banking.
The government offered up the debt-for-bond swap programme as an alternative to funding LGFVs, initially without much effect, as banks hesitated to buy the low-return, poor-quality assets.
After fiscal spending contracted in the first quarter, partly due to debt pressure on local governments, Beijing finally kickstarted buying in May when it agreed to let banks count the new municipal bonds as guaranteed collateral with the central bank.
Relax: China's fundamentals are sound
However, signs still point to the economic slowdown deepening in spite of a slew of policy measures in the past year to try to put a floor beneath the economy.
A private survey showed activity in China's factory sector shrank at its fastest pace in almost 6-1/2 years in August as domestic and export demand dwindled.
In its latest measure, the Chinese central bank cut benchmark interest rates and reserve requirements for financial institutions on Tuesday.
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c570caf158d79738f252239232bc1d3a | https://www.cnbc.com/2015/08/27/china-stocks-slump-blamed-on-exodus-of-sea-turtles.html | China market chaos blamed on exodus of regulatory 'turtles' | China market chaos blamed on exodus of regulatory 'turtles'
Chinese students continue to further their studies in the United States despite Trump's intentions to tighten immigration laws.
At the height of the 2008 financial crisis, as Wall Street slashed jobs, Beijing took advantage of the disarray to poach top Chinese financial talent from overseas to help reform its stock markets.
By summer 2015, China's Securities Regulatory Commission (CSRC) needed them more than ever; a year-long market boom had imploded in a few weeks, and the government was desperate to keep the crisis from widening.
But the best and brightest returnees, known in China as "sea turtles", had already left for the private sector, disillusioned and disappointed.
VIDEO3:3803:38Earnings season: How will Chinese lenders fare?Street Signs Asia
A former official at the CSRC, one of a group of 20 high-profile returnees, recalled the CSRC's appeal to make "sacrifices for the motherland".
"We moved our families back to China and gave up high-paying jobs, because we wanted to contribute," he said.
He said the group was sent for special training at Jinggangshan, a former revolutionary base used by Mao Zedong during the Chinese civil war.
Their idealism soon turned to cynicism. Their pay was a fraction of what they could earn in the private sector, and the CSRC didn't seem to value them.
"Several years passed, and none of us got promoted," said the official. "Some of us didn't even obtain a concrete position."
"Just at the time they needed people with both domestic and international experience, those most internationally experienced people were forced out," said Liu Li-Gang, China economist at ANZ.
The CSRC did not reply to requests for comment.
Brain drain
Those who left include Tang Xiaodong, former head of ABN AMRO's exotic credit derivatives, who served various roles at CSRC including driving reforms to foreign investor access programmes; Li Bingtao from J.P. Morgan Chase's global treasury department, who joined the CSRC planning committee; and Luo Dengpan, former student of Nobel Prize-winning economist Robert Shiller, who took charge of CSRC's institutional innovation department.
None of them replied to requests for comment.
Insiders who spoke to Reuters point to a rising wave of resignations within the regulatory apparatus over the last 12 months, just when sound advice was most needed.
Read MoreWall Street's stunning rebound rejuvenates Asia stocks
"Nearly every week, there are people submitting resignation letters," said an official at the Shanghai Stock Exchange. "And the pace of people leaving appears to be accelerating."
Chinese fund managers say the exodus left Chinese markets in the hands of people who don't understand markets.
"They don't have the same level of expertise as they did in recent years," said a senior Chinese derivatives trader at a foreign bank in Hong Kong.
That led, he said, to misguided, counter-productive policies like the crackdown on derivatives and "malicious" short-selling that some say only accelerated the selloff.
"It's not that they aren't smart," said an executive at a major fund who communicates regularly with the CSRC. "The difference is they don't have financial expertise."
An official still at the CSRC said regulators failed to grasp the significance of the surge in margin finance used for stock speculation that many warned was destabilising the markets.
It's also criticised for botching reform of the IPO market. It re-opened the market in early 2014 after a year's suspension, but under new pricing guidelines that inadvertently made IPOs a one-way bet that sucked funds from the wider market. After a surge in summer IPOs was partly blamed for setting off the crash, the CSRC suspended them again, indefinitely.
Catalog of failures
Such failures have hammered government's credibility, not least with investors who trusted Beijing to rescue the market in July and bought back in.
Government directed 900 billion yuan ($140 billion) into stocks, but indexes continued to fall after a brief hiatus, wiping out all the year's gains, and more than $4.5 trillion in market value - more than Germany's gross domestic product.
Read MoreAre Chinese firms losing their taste for Wall Street?
The heavy-handed intervention also damaged the credibility of China's public commitment to financial reform.
Analysts were not surprised when global stock index compiler MSCI delayed including Chinese shares in its benchmark emerging markets index, a move that might have brought billions of foreign dollars to China's markets.
Former officials said most of the returnees left due to frustration over their lack of influence over policy, limited opportunities for promotion, and low pay. Others spoke of resentment from colleagues.
Some were effectively forced out by the fallout from Beijing's anti-corruption drive, which led to salary cuts for senior staff and a campaign against "naked officials" - those who move family members and assets overseas in case the official is arrested.
"They can get high pay outside at lower risk, higher return. Why not?" said Oliver Rui, professor of finance at the China Europe International Business School in Shanghai.
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8723b03580dc39bf2aeda26f108544b0 | https://www.cnbc.com/2015/08/27/christie-obama-has-made-inequality-worse-than-ever.html | Christie: Obama has made inequality worse than ever | Christie: Obama has made inequality worse than ever
VIDEO4:3704:37Chris Christie: Too much debtSquawk Box
VIDEO0:4600:46Gov. Christie economic planSquawk Box
VIDEO2:2202:22Chris Christie's path to winningSquawk Box
VIDEO1:5801:58Gov. Christie: Running in crowded GOP fieldSquawk Box
A president gets credit or blame for practically anything that happens during his watch, so President Barack Obama can take responsibility for making America's rich richer, GOP presidential hopeful Chris Christie said Thursday.
"The guy who claims to care about income inequality has made income inequality worse than it's ever been in the country's history because he has played to the investor class to make rich people richer," the New Jersey governor said on CNBC's "Squawk Box."
The United States has the ability to grow at 4 percent, well above current levels, but regulation is holding back the economy, he said.
"The government has squashed the ingenuity and the energy of the American people by the biggest regulatory scheme we've ever seen," he said.
Read More Fed's George: Prepared for rate hike, despite selloff
Christie claimed that the president's own Small Business Administration reported it costs $10,000 per employee for small businesses to comply with regulation.
The agency did say in a 2010 report that small businesses faced a $10,585 regulatory cost per employee. However, the administration said that figure was as of 2008, the last year of Republican President George W. Bush's two terms and just prior to Obama taking office the following January.
Asked whether he agrees with Donald Trump's plan to abolish a carried interest tax loophole that benefits hedge funds, Christie said he would get rid of all loopholes except the home mortgage interest deduction or charitable contribution deduction. That would bring the tax rate to 28 percent at the top and 8 percent at the bottom, he said.
Read More
"The rich aren't going to like that because they're the ones who benefit from all these loopholes and these deductions," he said.
"You know why people hate the IRS and don't want to pay their taxes? Because they think the tax system is rigged for the rich. And you know why they think that? Because it is. It's rigged for the rich."
As governor, Christie said he had worked with Democratic lawmakers to control the state's budget; spend $2.5 billion less per day than under the previous administration; and reform tenure, pension and benefits systems.
"It can be done, and you can reach across aisle and make accommodations, but they need to know you’re strong and what you'll compromise on and what you won't," he said.
Read More Marco Rubio: 'Complete package' or too green?
New Jersey has also seen its credit rating cut nine times during Christie's administration, and the state now has the second-lowest rating, after Illinois.
A majority of New Jersey residents are also unhappy with his economic record, according to a Rutgers-Eagleton poll released this month. Just over 60 percent of residents from New Jersey disapprove of his handling of the economy, his plans for pension reform, and his efforts on taxes.
His overall approval rating stood at 37 percent in the state, and 61 percent of New Jersey Republicans had a favorable impression of him.
In a national poll released last week by CNN and ORC International, Christie placed 11th in a packed GOP primary race with 3 percent of the support among Republican voters. If he fails to inch up in the polls, he will be left out of the next GOP primary debate on CNN on Sept. 16.
Christie was one of 10 candidates that earned spots in Fox News' prime-time debate earlier this month.
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cddc1a77915a9850a831963d9eb7d60d | https://www.cnbc.com/2015/08/27/cnbc-excerpts-federal-reserve-bank-of-kansas-city-president-esther-george-speaks-with-cnbcs-steve-liesman.html | CNBC Excerpts: Federal Reserve Bank of Kansas City President Esther George Speaks with CNBC’s Steve Liesman | CNBC Excerpts: Federal Reserve Bank of Kansas City President Esther George Speaks with CNBC’s Steve Liesman
WHEN: Today, Thursday, August 27th
WHERE: CNBC's "Squawk Box"
Following are excerpts from the unofficial transcript of a CNBC interview with Federal Reserve Bank of Kansas City President Esther George with CNBC's Steve Liesman. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000411940 and http://video.cnbc.com/gallery/?video=3000411953.
All references must be sourced to CNBC.
EXCERPT 1:
STEVE LIESMAN: WHEN THE STOCK MARKET OPENS UP DOWN 1,000 POINTS, DO YOU GET NERVOUS?
ESTHER GEORGE: I PAY ATTENTION. BECAUSE AGAIN THAT'S SOME VOLATILITY YOU WANT TO UNDERSTAND. BUT REMEMBER, WE'VE BEEN IN A PERIOD OF A HIGHLY ACCOMMODATIVE POLICY WITH THE KIND OF TOOLS BEING USED BY THE FED THAT WERE TARGETED AT ASSET VALUES AND SO WHEN YOU EFFECT THOSE KIND OF PRICES FOR A LONG PERIOD OF TIME I EXPECT WE ARE GOING TO SEE THAT KIND OF VOLATILITY. AND SO THE QUESTION IS TO WHAT DEGREE AND HOW ARE WE POSITIONED TO DEAL WITH THAT.
LIESMAN: SO YOU LINK THE RECENT MARKET VOLATILITY TO FED POLICY?
GEORGE: I THINK THAT IT HAS AN INFLUENCE ON IT. AND I TAKE THAT BECAUSE WHEN WE DID QUANTITATIVE EASING, POLICY MAKERS WERE CLEAR ABOUT HOW IT WOULD EFFECT ASSET VALUES. SO WHETHER THAT MEANS ASSETS ARE OVERPRICED I DON'T KNOW. BUT I DO KNOW IT INTRODUCES AN IMPORTANT FACTOR TO HOW ASSETS ARE PRICED IN THE ECONOMY.
LIESMAN: SO THAT BEGS THE QUESTION AS TO WHETHER OR NOT WHAT HAPPENS IN THE MARKETS AND THE MARKET'S RECENT REACTION SHOULD INFLUENCE THE FEDERAL RESERVE AND WHETHER OR NOT IT CHANGES RATES.
GEORGE: POLICY MAKERS ARE ALWAYS TRYING TO DEFINE WHETHER THE FORECAST SHOULD ADJUST BECAUSE OF WHAT THEY HAVE SEEN. I THINK YOU HAVE TO BE PARTICULARLY CAREFUL WHEN MARKETS MOVE WHETHER THAT IS A SIGNAL OF SOMETHING MORE FUNDAMENTAL OR WHETHER IT IS A READJUSTMENT OF SOME SORT.
LIESMAN: YOU HAVE BEEN FAIRLY OUTSPOKEN THAT YOU THINK THE FED SHOULD RAISE RATES – THE FEDERAL RESERVE SHOULD RAISE INTEREST RATES. HAS ANYTHING YOU'VE SEEN THE LAST SEVERAL DAYS CHANGED YOUR OPINION OF THAT?
GEORGE: SO I'VE BEEN TALKING ABOUT THE NORMALIZATION OF RATES FOR SOMETIME. THIS WEEK'S EVENTS COMPLICATE THE PICTURE, BUT I THINK IT'S TOO SOON TO SAY IT FUNDAMENTALLY CHANGES THAT PICTURE. SO IN MY OWN VIEW THE NORMALIZATION PROCESS NEEDS TO BEGIN AND THE ECONOMY IS PERFORMING IN A WAY THAT I THINK IT'S PREPARED TO TAKE THAT.
LIESMAN: WHAT'S YOUR VIEW OF THE U.S. ECONOMY RIGHT NOW?
GEORGE: I THINK THE U.S. ECONOMY IS CONTINUING A TREND RATE OF GROWTH. IT HAS BEEN UNEVEN. AS YOU KNOW, THE FIRST QUARTER TOOK US BACK A LITTLE BIT TO UNDERSTAND WHY GROWTH CONTRACTED, BUT IT LOOKS AGAIN NOW SECOND QUARTER THAT WE'RE BACK ON TRACK. SO I THINK THE ECONOMY FUNDAMENTALLY IS IN A GOOD PLACE.
EXCERPT 2:
ANDREW ROSS SORKIN: KANSAS CITY FED PRESIDENT ESTHER GEORGE SAYING THE U.S. ECONOMY IS PREPARED FOR FED POLICY TO NORMALIZE. HERE'S WHAT SHE TOLD OUR SENIOR ECONOMICS REPORTER STEVE LIESMAN ABOUT THE FED'S RATE HIKE PATH.
GEORGE: I HOPE WE CAN GO GRADUALLY. I THINK THAT GIVEN HOW LONG WE HAVE BEEN AT ZERO WOULD BE THE IDEAL PATH TO BE ABLE TO LIFT OFF, TO WAIT AND SEE HOW THE ECONOMY DOES AND THEN DECIDE WHEN THE NEXT MOVE IS.
LIESMAN: WHEN IT COMES TO RAISING INTEREST RATES, ARE YOU CONCERNED THAT THE MARKET WOULD BRING FORWARD ALL FUTURE RATES TO TODAY, THIS IDEA THAT THEY SORT OF PRICE TO THE TERMINAL RATE? AND HOW DOES THE FED AVOID THAT?
GEORGE: SO THAT'S BEEN THE TRADITIONAL REACTION IS TO BRING THAT FORWARD. I THINK THROUGH A LOT OF COMMUNICATIONS AND EFFORTS TO BE MORE TRANSPARENT ABOUT HOW POLICY MAKERS ARE THINKING ABOUT RATES THIS TIME, I HOPE WILL HELP THAT. BUT, YES, TO SOME DEGREE THAT ALWAYS PULLS FORWARD IN SOME SENSE.
LIESMAN: A STRONGER DOLLAR, LOWER COMMODITY PRICES, CHINESE ECONOMIC WEAKNESS, WHAT TYPE OF EFFECT DO YOU EXPECT THAT TO HAVE ON THE NEAR-TERM INFLATION DATA?
GEORGE: WELL, I EXPECT THERE IS GOING TO CONTINUE TO BE DISINFLATIONARY PRESSURES FOR SOMETIME GIVEN WHAT IS GOING ON IN THE REST OF THE WORLD. TO WHAT EXTENT THAT FEEDS THROUGH TO THE REAL ECONOMY, TO WHAT EXTENT WE SEE THAT CHANGING EXPECTATIONS, REMAINS TO BE SEEN. THOSE HAVE HELD UP PRETTY WELL WHICH IS WHY I THINK THIS IS STILL A TRANSITORY STORY.
LIESMAN: WHY DID YOU COME UP WITH INFLATION AS THE TOPIC FOR THIS CONFERENCE AND WHAT DO YOU HOPE TO GET OUT OF THE CONFERENCE?
GEORGE: SO THE ISSUES AROUND INFLATION WE ARE SEEING GLOBALLY, MAJOR CENTRAL BANKS STRUGGLE WITH. AND THE QUESTION I THINK IS, IS IT A FUNCTION OF THE NATURE OF THE CRISIS WE JUST WENT THROUGH, WHAT ADJUSTMENTS MAY HAVE COME FROM THAT, THE TIME THAT IT TAKES TO RESTORE ECONOMIES TO THEIR FULL POTENTIAL, IS HAVING THESE EFFECTS.
LIESMAN: ARE YOU CONCERNED ABOUT THE MARKET FALLOUT FROM THE FEDERAL RESERVE RAISING INTEREST RATES IN THE CURRENT ENVIRONMENT?
GEORGE: I THINK THERE COULD BE VOLATILITY, STEVE. DO I WORRY ABOUT THAT? IF I THOUGHT THE ECONOMY WAS NOT ON RELATIVELY SURE FOOTING HERE, THEN I THINK THE COMPLICATIONS FROM THAT WOULD CAUSE POLICYMAKERS TO HAVE TO THINK ABOUT THAT. BUT AGAIN, GIVEN THE FUNDAMENTALS, I THINK WE ARE IN A GOOD POSITION NOW AND WE CAN'T WAIT UNTIL WE CAN DETERMINE WHETHER MARKET CONDITIONS ARE JUST RIGHT.
About CNBC:
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 371 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/.
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365d23951a93c42496ed1ddbb008e27e | https://www.cnbc.com/2015/08/27/cnbc-transcript-new-jersey-governor-chris-christie-speaks-with-cnbcs-squawk-box-today.html | CNBC Transcript: New Jersey Governor Chris Christie Speaks with CNBC’s “Squawk Box” Today | CNBC Transcript: New Jersey Governor Chris Christie Speaks with CNBC’s “Squawk Box” Today
WHEN: Today, Thursday, August 27th
WHERE: CNBC's "Squawk Box"
Following is the unofficial transcript of a CNBC interview with New Jersey Governor Chris Christie on CNBC's "Squawk Box" (M-F, 6AM-9AM ET) today. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000411976, http://video.cnbc.com/gallery/?video=3000411977 and http://video.cnbc.com/gallery/?video=3000411978.
All references must be sourced to CNBC.
KERNEN: ALL RIGHT. WE ARE EXCITED TO GET TO OUR NEWSMAKER OF THE MORNING, NEW JERSEY GOVERNOR CHRIS CHRISTIE IS HERE JOINING US ON SET. GREAT TO HAVE YOU HERE.
CHRISTIE: HAPPY TO BE BACK.
KERNEN: GOVERNOR, YOU KNOW, IT'S RNC CHAIRMAN REINCE PRIEBUS? IS THAT HOW YOU SAY IT?
CHRISTIE: CORRECT.
KERNEN: HE THE SAID REPUBLICANS LAST TIME LEARNED ABOUT INTERNESSING BATTLES AND IT'S GOING TO BE A KINDER, GENTLER PRIMARY SEASON THIS TIME AROUND. WHAT HAPPENED? SOMETHING WENT WRONG. DOES IT BEGIN WITH A "T"?
CHRISTIE: WELL 17 PEOPLE DECIDED TO RUN. LET'S START WITH THAT. I MEAN IT IS VERY DIFFICULT TO HAVE A CALM PROCESS WITH 17 PEOPLE RUNNING. BUT YOU KNOW WHAT IT IS NOT BAD. I DON'T THINK ANYBODY SHOULD OVERREACT NOW. WHAT WE SHOULD REALLY BE TALKING ABOUT AND CONCERNED ABOUT ARE THE THINGS I'M HEARING IN NEW HAMPSHIRE WHEN I HAVE DONE 18 TOWN HALLS NOW. I MEAN THEY'RE CONCERNED ABOUT TERRORISM, STUDENT DEBT, THEY'RE CONCERNED ABOUT THIS ECONOMY AND JOBS AND SO THESE ARE THE THINGS WE SHOULD BE TALKING ABOUT. ALL THIS BACK AND FORTH AMONGST THE CANDIDATES, IT WILL ALL SETTLE ITSELF OUT. THAT'S WHY WE HAVE ELECTIONS.
KERNEN: THERE'S ALOT OF TIMES WHEN I ADMIT I'M A LITTLE BIT OLDER AND I LOOK AROUND AND I THINK THE END OF CIVILIZATION IS COMING BECAUSE OF WHAT I AM SEEING WHETHER ITS TIMES WHATEVER IT IS BUT SOCIAL MEDIA, I POINT TO IT AS A PROBLEM IN EXACERBATING A LOT OF THINGS THAT HUMAN NATURE USED TO HAVE UNDER CONTROL A LITTLE BIT BETTER AND CAN'T HELP BUT THINK AND MAYBE CELEBRITY WORSHIP AND THINGS LIKE THAT. THIS IS LIKE A CIRCUS. I SAID THE REST OF THE WORLD MIGHT BE LAUGHING AT US. AND THEN I THINK LOOK AT THEIR POLITICAL PROCESS. HALF THESE PLACES THEY HAVE 12 DIFFERENT PARTIES, FORM THESE COALITIONS. THEY'RE NO BETTER AND BUT NOW WE'VE JOINED THEM SORT OF IN THE MUCK. THIS IS JUST IT DOESN'T MAKE ME PROUD TO WATCH SOME OF THE STUFF WE'RE TALKING ABOUT AND FOCUSED ON.
CHRISTIE: THE ULTIMATE RESPONSIBILITY FOR THIS IS EACH ONE OF US AS CANDIDATES. IT IS WHAT WE TALK ABOUT, WHAT WE FOCUS ON, WHAT WE EMPHASIZE.
KERNEN: BUT YOU HAVE TO GET TRACTION. THAT'S THE PROBLEM IF YOU FOCUSED JUST ON SUBSTANCE AND ON ISSUES, YOU MAY END UP NOT BEING NOTICED AS MUCH AS YOU WOULD BE IF YOU FOCUSED ON SOME OF THE OTHER STUFF.
CHRISTIE: I DON'T THINK I'VE HAD A PERSONALITY PROBLEM.
KERNEN: NO.
CHRISTIE: RIGHT? SO I THINK THAT THE FACT IS THAT, YOU'LL BE NOTICED OVER TIME. BUT LET'S REMEMBER SOMETHING. IT'S AUGUST. THERE'S LOTS OF TIME TO GO HERE IN TERMS OF A CAMPAIGN. CAMPAIGNS MATTER. AND THEY MATTER IF YOU'RE COMMUNICATING IDEAS, IF YOU'RE COMMUNICATION A VISION AND LEADERSHIP FOR THE FUTURE. THAT'S THE THINGS YOU HAVE TO DO AND WE'RE GOING TO GET THERE. EVERY CAMPAIGN HAS DIFFERENT PHASES TO IT. REMEMBER SOMETHING. FOUR YEARS AGO HERMAN CAIN WAS AT 30% RIGHT NOW. HERMAN CAIN WAS AT 30%. SO --
KERNEN: ARE YOU STILL FRIENDS WITH DONALD TRUMP?
CHRISTIE: YEAH.
KERNEN: I AM, AS WELL. I WATCH WHAT'S GOING ON. HE REALLY DOES WANT -- I USED TO THINK MAYBE HE ENJOYED THE WHOLE PROCESS. IT WOULD BE AMAZING TO BE LEADING THE RNC BUT THEN I THOUGHT MAYBE HE WANTS TO GO BACK AND BE A BUILDER AND BE DONALD TRUMP AGAIN. I THINK HE REALLY IN WATCHING WHAT'S HAPPENING I THINK HE REALLY DOES NOW WANT TO WIN THE NOMINATION AND WANT TO BE PRESIDENT. I DON'T THINK HE IS ANY LONGER JUST --
CHRISTIE: I HAVE NO IDEA. YOU KNOW? YOU HAVE TO ASK DONALD. I MEAN --
KERNEN: WE WILL.
CHRISTIE: I'M IN THE RACE BECAUSE I WANT TO BE PRESIDENT OF THE UNITED STATES AND BECAUSE I WANT TO FIX THE PROBLEMS THAT PEOPLE NEED FIXED AND, YOU KNOW, PEOPLE TALK ABOUT OUTSIDERS. YOU UNDERSTAND THIS BETTER THAN ANYBODY. I'M A REPUBLICAN IN NEW JERSEY. THIS MEANS I WAKE UP MORNING AS AN OUTSIDER. AND HAVE TO FIGHT AGAINST DEMOCRATIC LEGISLATURES AND ENTRENCHED SPECIAL INTERESTS LIKE TEACHERS UNION AND ALL THE REST. WHAT PEOPLE WANT IS SOMEONE TO GO DOWN TO WASHINGTON AND ACTUALLY FIX THIS PROBLEM. AND I THINK WHAT DONALD HAS TAPPED INTO IS THAT FRUSTRATION AND ANGER OVER THE INEFFECTIVENESS AND THE INEFFICIENCY OF GOVERNMENT. WHAT WE NEED TO DO IS GET SOMEBODY WHO ACTUALLY HAS SHOWN A RECORD OF BEING ABLE TO FIX THAT.
SORKIN: SO JUST WALK US THROUGH THE PATH. FOR YOU. PATH TO COMPLETION. WHAT HAS TO HAPPEN? I SAY THAT BY THE WAY I THE CONTEXT OF I THINK JUST THIS WEEK THERE WAS A SUPERPAC THAT WAS AGAINST YOU SAID THEY DROPPED -- THEY HAVE GONE OUT OF BUSINESS EFFECTIVELY BECAUSE THEY THOUGHT THAT YOUR POLL NUMBERS WEREN'T HIGH ENOUGH AND THEY DIDN'T HAVE A REASON FOR BEING.
CHRISTIE: WELL ANDREW THEY NEVER WERE IN BUSINESS BECAUSE THEY RAISED A TOTAL OF $1,300 IN THEIR ENTIRE EXISTANCE. THAT'S A REAL GROUND SWELL OF SUPPORT FOR AN ANTI CHRIS CHRISTIE PAC. TO RAISE $1,300 AND THEY SPENT 3 AND WENT OUT OF BUSINESS. I KIND OF THINK IT WAS REALLY JUST A PRESS RELEASE MORE THAN ANYTHING ELSE. BUT HERE'S THE PATH. THE PATH IS SAME FOR ME AS ANYBODY ELSE, WHETHER YOU'RE ME OR WHETHER YOU'RE SCOTT WALKER OR MARCO RUBIO NO MATTER WHO YOU ARE, YOU GOT TO DO WELL IN ONE OF THE FIRST THREE STATES. IOWA, NEW HAMPSHIRE AND SOUTH CAROLINA, YOU HAVE TO DO WELL IF YOU DON'T DO WELL YOU CAN'T CONTINUE IN A RACE OF 17 PEOPLE. SO MY PATH IS NO DIFFERENT THAN ANYBODY ELSE'S AND THE WAY I'M DOING THIS IS TO DG OUT AND DO WHAT I DID IN NEW JERSEY AND HAVE DONE IN NEW JERSEY OVER THE LAST SIX YEARS. HOLDING MORE TOWN HALL MEETINGS THAN ANYBODY ELSE. MEETING VOTERS ONE ON ONE. LETTING THEM GET TO KNOW ME, LETTHING THEM ASK ME QUESTIONS AND GIVING THEM DIRECT ANSWERS AND THAT'S WHAT'S GOING TO MATTER ULTIMATELY. PEOPLE ARE GOING TO WANT TO KNOW WHAT DO YOU STAND FOR AND ARE YOU WILLING TO INTERACT WITH THEM PERSONALLY. NOT JUST HOVER OVER THEM AND WAVE TO THEM BUT SHAKE THEIR HAND, LOOK THEM IN THE EYE AND ANSWER THEIR QUESTION. AND THAT'S WHAT I'M DOING AND THAT'S THE PATHWAY TO WINNING.
KERNEN: GOVERNOR, THESE RED MEAT ISSUES AT BOTH SIDES SEEM TO FOCUS ON, HERE WE ARE IN THE SIXTH, SEVENTH YEAR OF A RECOVERY, 3.7% NUMBER, I DON'T KNOW. THAT'S AN OUTLIER OBVIOUSLY.
CHRISTIE: TOTALLY.
KERNEN: I WISH IT WAS REAL BUT THE FACT IS THAT IT'S BEEN 2% OR LESS FOR 7 YEARS. SO THE REPUBLICANS SUPPOSEDLY KNOW HOW TO GENERATE PRIVATE SECTOR GROWTH AND IF I WERE A REPUBLICAN, THAT'S ALL I WOULD BE TALKING ABOUT. BUT INSTEAD, WE'RE -- WE TALK ABOUT A LOT OF CRAZY REPUBLICANS TALK ABOUT CRAZY STUFF. I DON'T KNOW HOW -- THERE'S NO WAY TO PUT THIS IMMIGRATION ISSUE AWAY TO TALK ABOUT THE ECONOMY BECAUSE IT'S GOING TO BE FRONT AND CENTER BECAUSE IT'S SO MUCH PLAY. NOW THAT THE LEFT HAS OTHER THINGS THEY LIKE TO FOCUS ON BUT THIS IS WHAT WE SHOULD TALK ABOUT, PROSPERITY WHCIH NARROWS THE INCOME DISPARITY WHICH ALLOWS US TO PAY OFF ALL OUR ENTITLEMENTS EASIER IT'S WHAT MADE AMERICA GREAT. PRIVATE SECTOR PROSPERITY THAT'S ALL WE SHOULD BE TALKING ABOUT.
CHRISTIE: YOU KNOW, JOE, MY FIRST TWO SPEECHES ON THIS WERE ON ENTITLEMENT REFORM. I'M THE ONLY PERSON THAT TALKED ENTITLEMENT REFORM SO FAR IN ANY DETAIL WITH ANY KIND OF SPECIFIC PLAN. SECOND WAS, YOU KNOW, A REGULARITY TAX REFORM SPEECH WITH REAL DETAILS ON HOW TO CHANGE OUR TAX SYSTEM AND CHANGE OUR REGULATORY SYSTEM. SO WE -- THERE ARE PEOPLE OUT THERE TALKING ABOUT IT AND IT EVENTUALLY WILL COME AROUND TO THAT. WHEN PEOPLE REALLY FOCUS ON IT. BECAUSAE I COULD TELL YOU IN NEW HAMPSHIRE PEOPLE WORRIED ABOUT, WHAT THEY ASK ME ABOUT IS HOW ARE WE GOING TO GROW THE ECONOMY, HOW WILL I TAKE CARE OF MY KID'S STUDENT DEBT AND HOW DO THEY LIVE AFTER THIS IF THEY CAN'T FIND A JOB TO PAY OFF THE DEBT? AND ALSO AWFULLY CONCERNED ABOUT TERRORISM AND ABOUT PRESERVING THEIR LIVES IN THIS COUNTRY, NOT ONLY THE WAY OF LIFE BUT THEY'RE ACTUAL LIFE. WE'LL GET THE THOSE SUBJECTS. WE'RE ALREADY STARTING TO.
EISEN: I HAVE A QUESTION ON MARKETS RELATED TO THE ECONOMY. WE HAVE SEEN THESE CRAZY SWINGS AND THIS IS A --
KERNEN: A BOTTOM YET?
EISEN: HISTORIC WEEK IN THE MARKETS AND I THINK I READ SOMEWHERE THAT YOU SAID THAT IT WAS PRESIDENT OBAMA'S DEALING WITH CHINA AND ECONOMIC PROBLEMS, YOU BLAMED HIM. BUT THE STOCK MARKET IS UP 140% SINCE PRESIDENT OBAMA TOOK OFFICE. SO SHOULD HE GET CREDIT FOR THAT?
CHRISTIE: WELL LISTEN. A PRESIDENT GETS CREDIT AND BLAME FOR ANYTHING THAT HAPPENS ON HIS WATCH. OKAY? SO THAT'S THE WAY IT GOES. BARACK OBAMA CAN TAKE CREDIT FOR MAKING THE RICH IN THIS COUNTRY RICHER. HE'S DONE A GREAT JOB OF THAT. THE GUY WHO CLAIMS TO CARE ABOUT INCOME INEQUALITY HAS MADE INCOME INWQUALITY WORSE THAN IT'S EVER BEEN IN THE COUNTRY'S HISTORY CAUSE HE HAS PLAYED TO THE INVESTOR CLASS AND TO MAKE RICH PEOPLE RICHER. HERE'S THE PROBLEM. MIDDLE CLASS WAGES ARE STAGNANT FOR 15 YEARS AND IN FACT THEY'RE BEHIND THE RATE OF INFLATION AND WHAT I SAID ABOUT CHINA THAT DAY IS THIS. THE REASON WE'RE SO SUSCEPTIBLE TO CHANGES IN THE CHINESE ECONOMY IS BECAUSE THE CHINESE HAVE LENT US SO MUCH MONEY AND HAVE SO MUCH OF OUR DEBT. IF CHINA GETS A COUGH WE GET THE FLU. BECAUSE THIS PRESIDENT'S RUN UP MORE DEBT THAN ANY PRESIDENT IN AMERICAN HISTORY. SO SPECIFICALLY, WHAT I WAS TALKING ABOUT WAS THAT IN THIS CURRENT MOMENT OF CRISIS, ON THE MARKETS, IT'S ABOUT CHINESE DEBT, PEOPLE IN CHINA OWNING SO MUCH OF OUR DEBT THAT WE'VE BECOME SO MUCH MORE DEPENDENT ON THEM AS AN ECONOMY.
EISEN: DO YOU THINK WE SHOULD WE BE LESS INTERCONNECTED WITH CHINA AND THE CHINESE ECONOMY?
CHRISTIE: NO. I THINK WE SHOULD BE BORROWING LESS MONEY FROM CHINA. I THINK WE SHOULD GET OUR FISCAL HOUSE IN ORDER. I THINK WE SHOULD MAKE GOVERNMENT SMALLER AND STOP SPENDING SO MUCH. AND JOE'S RIGHT, IF WE GREW THE ECONOMY AT 4% RATHER THAN 2% WE'D HAVE TO – WE'D BE ABLE TO BORROW A LOT LESS MONEY FROM CHINA.
KERNEN: HAVE YOU SEEN THE LEFT, JEB IS ALSO TALKING 4%. THE LEFT LOVES TO LAUGH ABOUT THAT. THEY WALLOW IN THE NOTION THAT 2% IS OUR MAXIMUM GROWTH NOW, WHICH IS PROBABLY TRUE IN A EUROPEAN EGALITARIAN SOCIETY WHERE EVERYBODY DOES THE SAME AND EVERYTHING'S ALL EVEN AND EQUAL. NO ONE'S TOO WELL, NO ONE'S DOING TOO BADLY. 2% WE SHOULD BE SATISFIED.
CHRISTIE: LET'S ASK BILL CLINTON IF HE THINKS 4% IS POSSIBLE BECAUSE IT HAPPENED WHEN HE WAS PRESIDENT, TOO. AND MAYBE HIS WIFE DOESN'T HAVE THAT OPTIMISM ABOUT AMERICA BUT I DO. I LOVE THIS COUNTRY AND I'LL TELL YOU THIS. THE PROBLEM IS THE GOVERNMENT HAS SQUASHED THE INGENUITY AND THE ENERGY OF THE AMERICAN PEOPLE BY THE BIGGEST REGULATORY SCHEME WE HAVE EVER SEEN. LAST YEAR JOE, 81,000 PAGES OF NEW FEDERAL REGULATION BY THIS ADMINISTRATION, THE MOST EVER. AND NOW, HIS OWN SMALL BUSINESS ADMINISTRATION SAYS IT COSTS $10,000 PER EMPLOYEE FOR SMALL BUSINESS TO COMPLY WITH FEDERAL REGULATION. AWFUL. IT'S CRAZY.
SORKIN: GOVERNOR, SPEAK TO THIS IF YOU COULD. TALKING ABOUT TAXES, YOU DO HAVE A TAX PLAN. DONALD TRUMP JUST SAID THIS WEEK THAT HE WOULD GET RID OF CARRIED INTEREST. YOUR TAKE? WHAT WOULD YOU DO?
CHRISTIE: LISTEN, I PUT OUT MY PLAN. AND MY PLAN IS TO GET RID OF EVERY DEDUCTION OR LOOPHOLE EXCEPT FOR THE HOME MORTGAGE INTEREST DEDUCTION OR THE CHARITABLE CONTRIBUTION DEDCUTION. THAT ALLOWS YOU TO LOWER RATES TO 28% ON THE TOP END, 8% ON THE LOW END AND ONE IN THE MIDDLE. YOU CAN DO YOUR TAXES IN 15 MINUTES FOR MOST AMERICANS THEN AND YOU GET TO KEEP MORE OF YOUR MONEY. NOW, THE RICH AREN'T GOING TO LIKE THAT BECAUSE THEY'RE THE ONES WHO BENEFIT FROM THESE LOOPHOLES AND THESE DEDUCTIONS. MOST AMERICANS USE THE STANDARD DEDUCTION. THEY DON'T USE THESE SPECIAL DEDUCTIONS. LET'S GET RID OF THEM. YOU KNOW WHY PEOPLE HATE THE IRS? DON'T WANT TO PAY THEIR TAXES? BECAUSE THEY THINK THE TAX SYSTEM IS RIGGED FOR THE RICH. AND YOU KNOW WHY THEY THINK THAT? BECAUSE IT IS. IT'S RIGGED FOR THE RICH. AND SO, LET'S MAKE IT SIMPLE, LET'S MAKE IT EASY, AND LET'S MAKE EVERYBODY PAY THEIR FAIR SHARE. WE DO THAT, WE'RE GOING TO HAVE ECONOMIC GROWTH THAT YOU HAVE NEVER SEEN BEFORE IF COMBINED WITH A REGULATORY REFORM THAT LETS BUSINESS MAKE THE DECISIONS AND NOT WASHINGTON BUREAUCRATS.
KERNEN: DO YOU THINK, AND AGAIN, WE WERE SUPPOSED TO COME TOGETHER FOR THE PAST SIX YEARS. IT'S RICH AGAINST POOR. HESITATE TO SAY IT, THERE'S A LOT OF DIVISIVENESS IN THE COUNTRY RIGHT NOW. WHAT DO WE NEED IN THE NEXT PRESIDENT? SHOULD YOU – LET'S SAY THAT THERE'S STILL A FEW DEMOCRATS LEFT IN CONGRESS WHICH THERE WILL BE. WILL YOU DO AN INFRASTRUCTURE DEAL? WILL YOU BUILD SOME ROADS? WILL YOU DO ANY PUBLIC WORKS? ANY EDUCATION THAT INVOLVES GOVERNMENT SPENDING? OR WILL IT BE MY WAY OR THE HIGHWAY AS IT IS RIGHT NOW?
CHRISTIE: JOE, LOOK AT WHAT WE HAVE DONE IN NEW JERSEY. I WAKE UP EVERY MORNING WITH A DEMOCRATIC LEGISLATURE AND HAVE FOR EVERY DAY THAT I'VE BEEN GOVERNOR. YET, WE'VE CONTROLLED THE BUDGET IN NEW JERSEY. WE SPENT $2.5 BILLION LESS TODAY THAN WE DID EIGHT YEARS AGO. WE HAVE 9,500 FEWER EMPLOYEES. WE REFORMED TENURE. WE REFORMED THE PENSION AND BENEFITS SYSTEM. WE HAVE DONE THINGS LIKE MAKE SURE THAT BUSINESS GETS TAX CUTS OF $2.3 BILLION. ALL WITH A DEMOCRATIC LEGISLATURE. IT CAN BE DONE. AND YOU CAN REACH ACROSS THE AISLE AND MAKE ACCOMMODATIONS, BUT THEY NEED TO KNOW YOU'RE STRONG AND WHAT YOU WILL COMPROMISE ON AND WHAT YOU WON'T. AND THEY ALSO NEED TO GET TO KNOW YOU. ONE OF THE DISGRACES OF THIS PRESIDENT IS WHEN I READ A FEW WEEKS AGO THAT THREE OR FOUR WEEKS AGO WAS THE FIRST TIME JOHN BOEHNER HAD EVER BEEN ON AIR FORCE ONE. AND THIS GUY IS THE REPUBLICAN LEADER OF THE HOUSE FOR YOUR ENTIRE PRESIDENCY. YOU'VE NEVRE HAD HIM ON AIR FORCE ONE? LET ME TELL YOU, WHEN I'M PRESIDENT, YOU WANT TO COME ON AIR FORCE ONE, YOU WANT TO COME TO CAMP DAVID, YOU WANT TO COME TO THE OVAL OFFICE? COME.
KERNEN: THE PRESIDENT HASN'T VISITED A LOT OF HIS OWN MEMBERS IN CONGRESS MUCH LESS MEMBERS OF HIS OWN PARTY.
CHRISTIE: WELL THAT IS THE POINT. DIVISIVENESS. AND THEN THE PRESIDENT COMPARES THE REPUBLICAN CAUCUS TO THE PROTESTERS IN IRAN CHANTING DEATH TO AMERICA. YOU WANT TO KNOW WHY AMERICA'S DIVIDED? BECAUSE WE HAVE A DIVISIVE LEADER WHO BELIEVES THAT HE IS RIGHT ALL THE TIME WITHOUT EXCEPTION. LOOK AT THIS IRAN DEAL, JOE. IT IS ONE OF THE WORST THINGS A PRESIDENT HAS EVER FOISTED UPON A COUNTRY. SECRET DEALS THAT HE WON'T TELL ANYBODY THE CONGRESS OF THE AMERICAN PEOPLE ABOUT. KNOW WHAT MY BOTTOM LINE IS? I TRUST THE VOICE OF THE AMERICAN PEOPLE MORE THAN I CAN TRUST VOTES AT THE U.N. SECURITY COUNCIL. AND THIS PRESIDENT, THIS PRESIDENT IS NOW CAREENING US TOWARDS A COUNTRY LIKE IRAN HAVING A NUCLEAR WEAPON.
KERNEN: HE IS GETTING AND HE IS LINING UP DEMOCRATIC SUPPORT, BUT NOT PUBLIC SUPPORT. IT'S NOT JUST A PLURALITY NOW. I MEAN, IT IS A STRONG MAJORITY OF THE PUBLIC IS AGAINST.
CHRISTIE: YOU KNOW WHY? BECAUSE THE AMERICAN PEOPLE KNOW HOW TO USE COMMON SENSE. HOW CAN YOU LET – WE ARE GOING TO LET THE IRANIAN REVOLUTIONARY GUARD INSPECT IRANIAN MILITARY SITES AND TELL US WHETHER THEY ARE CHEATING? THIS IS THE REGIME THAT HAS BEEN CHEATING FOR 12 YEARS ON THE NUCLEAR PROGRAM, AND THE SAME REGIME THAT HAS BEEN CHANTING DEATH TO AMERICA SINCE 1979. WHY THE HECK DO WE THINK THEY ARE GOING TO CHANGE THEIR STRIPES?
EISEN: WHAT DO YOU PREDICT IS GOING TO HAPPEN THERE?
CHRISTIE: WELL LISTEN, I DON'T KNOW. I AM OUT THERE REALLY HARD AND STRONG WITH JEWISH LEADERS IN OUR STATE AND AROUND THE COUNTRY SAYING THIS IS WRONG AND IT NEEDS TO BE REJECTED. BUT THE PRESIDENT – YOU KNOW WHAT OTHER SECRET DEALS I WANT TO KNOW ABOUT? I WANT TO KNOW ABOUT WHAT SECRET DEALS HE IS OFFERING TO THESE MEMBERS OF CONGRESS WHO ARE SAYING THEY ARE VOTING YES. BECAUSE YOU KNOW WHAT? WE ARE GOING TO HAVE TO PAY FOR THOSE LATER. YOU KNOW, WITH SOME OF THE PEOPLE WHO ARE NOW SAYING THEY VOTED YES, GIVEN THEIR PAST HISTORY ON ISRAEL, HOW MUCH PORK IS HE OFFERING THEM OUT OF THE FEDERAL BUDGET? AND HOW ABOUT, I DON'T ONLY WANT TO KNOW ABOUT THE SECRET DEALS WITH IRAN, I WANT TO KNOW ABOUT THE SECRET DEALS WITH MEMBERS OF THE DEMOCRATIC CAUCUS IN CONGRESS WHO ARE CAVING AND PUTTING OUR NATIONAL SECURITY AT RISK.
SORKIN: GOVERNOR, I WANT TO GET YOUR REACTION TO A DOMESTIC ISSUE, THIS TERRIBLE TRAGIC SHOOTING YESTERDAY OF THIS REPORTER AND CAMERAMAN. CLEARLY, A MENTAL HEALTH ISSUE BUT CREATED A DEBATE ABOUT GUN CONTROL AGAIN. I'M CURIOUS IF THIS HAS HAD ANY EFFECT ON YOUR THOUGHTS ABOUT IT?
CHRISTIE: NO. EXCEPT THAT I AM INCREDIBLY SAD FOR THOSE FAMILIES. AND IT IS TERRIBLE WHAT'S HAPPENED TO THEM. AND EVERY TIME YOU SEE SOMETHING LIKE THIS, YOU THINK TO YOURSELF THERE BUT FOR THE GRACE OF GOD GO I. AND SO YOU FEEL FOR THE FAMILIES. BUT LET'S JUST ENFORCE THE LAWS WE HAVE ALREADY, ANDREW. LET'S NOT WORRY ABOUT MAKING MORE LAWS. IT MAKES NO SENSE TO ME. LET'S ENFORCE THE LAWS. I WAS A PROSECUTOR FOR SEVEN YEARS AS THE U.S. ATTORNEY. WE STRICTLY ENFORCED THE GUN LAWS IN NEW JERSEY. THE FEDERAL GUN LAWS. FELONS IN POSSESSION OF WEAPONS. THEY ARE THE ONES WHO ARE COMMITTING CRIMES.
SORKIN: HOW DO WE KEEP GUNS OUT OF THE HANDS OF THOSE WHO HAVE MENTAL HEALTH ISSUES?
CHRISTIE: LET ME TELL YOU, I PUT FORWARD A PROPOSAL THAT THE DEMOCRATIC LEGISLATURE IN NEW JERSEY WON'T ADOPT. YOU KNOW WHY? BECAUSE IT MAKES SENSE AND IT DOESN'T MAKE HEADLINES. I SAY WE HAVE TO GIVE DOCTORS MORE AUTHORITY TO INVOLUNTARILY COMMIT PEOPLE WHO TALK ABOUT COMMITTING VIOLENT ACTS. WE HAVE TO MAKE SURE THAT WE HAVE MORE MENTAL HEALTH RECORDS AVAILABLE FOR PEOPLE TO REVIEW. THESE ARE ALL COMMON SENSE THINGS THAT THE AMERICAN PEOPLE SUPPORT AND THAT WE ALREADY HAVE ON THE BOOKS THAT ARE READY TO BE EXECUTED ON. BUT YOU KNOW WHAT? IT DOESN'T MAKE A HEADLINE FOR LEFT WING LIBERAL OUTLETS WHO THINK THAT THE NEXT THING WE NEED TO DO IS JUST TAKE MORE GUNS AWAY FROM LAW-ABIDING CITIZENS. THAT'S NOT THE PROBLEM.
KERNEN: ANDREW, NINE MONTHS FOR ME TO FINALLY BE ALLOWED TO PURCHASE A FIREARM. NINE MONTHS. MILLBURN HAD TO LOOK AT ME. THE STATE HAD TO LOOK AT ME. THE COUNTY HAD TO LOOK AT ME. I COULD HAVE GONE TO WASHINGTON HEIGHTS THAT AFTERNOON IF I GO TO THE RIGHT PLACE.
CHRISTIE: IF YOU WANTED TO BE A CRIMINAL.
KERNEN: IF I WANTED TO BE A CRIMINAL, I COULD HAVE BOUGHT A GUN THAT AFTERNOON. SO FIGURE THAT OUT.
CHRISTIE: AND THAT IS THE PROBLEM. AND THEY WANT MORE LAWS TO MAKE IT MORE DIFFICULT FOR GUYS LIKE HIM TO BUY GUNS.
KERNEN: NINE MONTHS. AND I HAVEN'T SEEN IT. I KNOW HOW YOU FEEL. THIS IS IN A SAFE. IT'S GOT ONLY A FINGERPRINT OPENS IT UP. THERE'S NO WAY TO GET AT IT.
SORKIN: YOU KNOW ME. I'M SCARED OF GUNS IN ALL CONTEXT.
KERNEN: I KNOW. DON'T BE AFRAID ANDREW.
CHRISTIE: I'LL TELL YOU WHAT I'M MORE SCARED OF, I'M MORE SCARED OF CRIMINALS THAN I AM OF GUNS.
KERNEN: RIGHT. YOU WON'T BE SCARED – IF THERE IS A CRIMINAL AROUND OR A BAD GUY AND ONE OF THE LAW ENFORCEMENT OFFICIALS HAS A GUN, YOU'LL LIKE THE GUN. YOU WON'T BE NEARLY AS AFRAID OF THE GUN.
EISEN: TO JOE'S POINT, I MEAN IT DOES EXPOSE A DARK SIDE OF SOCIAL MEDIA AS WELL.
CHRISTIE: WELL, SURE. LISTEN, BUT THAT DARK SIDE IS PEOPLE. I DON'T WANT TO BLAME THE MEDIUM. IT IS NOT LIKE WE DIDN'T HAVE REALLY DEEPLY DISTURBED CRIMINALS BEFORE TWITTER OR BEFORE FACEBOOK. I THINK THAT WE HAVE TO HOLD PEOPLE RESPONSIBLE. ONE OF THE THINGS I THINK THE AMERICAN PEOPLE ARE SO FRUSTRATED ABOUT IS THAT THERE IS NO SENSE WITH OUR POLITICIANS OR WITH OTHER PEOPLE. THAT THERE IS PERSONAL ACCOUNTABILITY AND PERSONAL RESPONSIBILITY FOR YOUR CONDUCT. SO NOW WE ARE GOING TO BLAME TWITTER OR WE'RE GOING TO BLAME FACEBOOK. WELL HECK, I DON'T THINK THAT'S THE PROBLEM. THE PROBLEM IS, THE STUFF WE PUT ON IT. THE STUFF WE PUT ON IT IS THE PROBLEM. YOU KNOW WHO DOES THAT? SOMEONE WHO TAKES THEIR DEVICE OUT AND TYPES IT IN. IT DOESN'T GET THERE BY ITSELF. THAT'S WHY FOLKS ARE FRUSTRATED. BECAUSE THEY THINK POLITICIANS DON'T TAKE ACCOUNTABILITY. YOU HAVE HILLARY CLINTON SAYING THE LAW DOESN'T APPLY TO HER. IT DOESN'T APPLY TO ME. SHE MAKES JOKES ABOUT IT. CAN YOU IMAGINE? SHE SHOULD BE DISQUALIFIED TO RUN FOR PRESIDENT OF THE UNITED STATES.
KERNEN: SO THEY DIDN'T WORK AND NOW, SHE SAYS, IT WAS CLEARLY THE WRONG CHOICE. SHE MADE A COUPLE OF JOKES. THE WIPING IT CLEAN AND THE I LOVE SNAP CHAT.
CHRISTIE: YEAH, BECAUSE IT ELIMINATES IT BY ITSELF. SHE THINKS THIS IS FUNNY. BUT MEANWHILE, THE TOP DIPLOMAT IN AMERICA WAS DOING ALL OF HER BUSINESS ON A PRIVATE SERVER THAT SHE HID IN HER BASEMENT SO THAT THE AMERICAN PEOPLE COULDN'T HAVE ACCESS TO WHAT SHE WAS DOING. DO YOU THINK SHE WIPED THAT THING CLEAN BECAUSE THERE IS NOTHING ON THERE THAT INCRIMINATES HER? I MEAN THE REASON SHE IS BEING INVESTIGATED BY THE FBI IS BECAUSE PEOPLE WHO DO THAT KIND OF STUFF, OBSTRUCK JUSTICE AND WHO MISHANDLE SENSITIVE, CLASSIFIED INFORMATION SHOULD BE INVESTIGATED AND SHOULD BE PROSECUTED. IF THIS JUSTICE DEPARTMENT PROSECUTED DAVID PETRAEUS AND PREVIOUS JUSTICE DEPARTMENT PROSECUTED SANDY BURGER, YOU BETTER BE SURE THAT THEY SHOULD BE PROSECUTING HILLARY CLINTON. AND THE PRESIDENT OF THE UNITED STATES, SHE WORKED FOR HIM. HE SHOULD HOLD HER ACCOUNTABLE. THE PRESIDENT SHOULD GO OUT AND SAY, YOU KNOW WHAT MADAM SECRETARY? REVEAL ALL THE INFORMATION BECAUSE IT IS AN EMBARRASSMENT TO MY ADMINISTRATION THAT YOU ARE PLAYING HIDE AND SEEK WITH THE AMERICA'S NATIONAL SECRETS AND AMERICA'S NATIONAL SECURITY. AND WHO KNOWS WHO GOT ACCESS TO THAT PRIVATE SERVER JOE AND THE INFORMATION THAT WAS ON THERE. IT PUTS OUR NATIONAL SECURITY AT RISK. SHE OWES THE AMERICAN PEOPLE MORE THAN THAT AND WHAT SHE REALLY SHOULD DO IS GET OUT OF THE RACE.
KERNEN: GOVERNOR, THANKS FOR COMING. DON'T BE A STRANGER.
CHRISTIE: ABSOLUTELY. IT'S MY WIFE'S FAVORITE SHOW. NOW, I KNOW SHE IS WATCHING ME. THE REST OF THE STUFF, MAYBE, MAYBE NOT.
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759d5d139c9ee225d5efdda6c6890390 | https://www.cnbc.com/2015/08/27/could-commodities-make-a-real-comeback-soon.html | Could commodities make a real comeback soon? | Could commodities make a real comeback soon?
VIDEO3:3003:30China: Catalyst for commodity bounce back?Worldwide Exchange
With oil prices surging after the global market turmoil of "Black Monday," could investors regain their faith in commodities?
One economist told CNBC Thursday that if China fired enough stimulus into its economy, a longer-term bounce back in commodities could be on the horizon.
"We certainly think that the authorities in China have the firepower in terms of monetary and fiscal policy to enact enough stimulus for the economy to at least meet the growth rate they're targeting," Caroline Bain, senior commodities economist at Capital Economics, told CNBC on Thursday.
Brent and WTI crude oil prices surged as much as 9 percent on Thursday, following a rally in equity markets, an unexpected fall in U.S. crude inventories and U.S. second-quarter GDP data that was stronger than the previous estimate.
Markets were also boosted on the news, reported by China's state media agency, that Beijing had expanded its debt-for-bond swap program. This is aimed at easing the financing pressure on China's indebted local governments and comes as part of a series of moves by Beijing to boost its national economy and stabilize its stock market.
Two employees tie up steel bars at a steel-making plant in Ganyu, China.Getty Images
Analysts have questioned whether China is on track to meet its 7 percent growth target this year, but Bain forecast an upturn in the economy, potentially in the last three months of 2015.
China reported its economy grew by a stronger-than-expected 7 percent in the second quarter year-on-year. This was stronger than analysts had expected, leading to some speculation about the reliability of official Chinese data.
"We probably suspect that the current numbers are overestimating the state of growth in China," Bain told CNBC on Thursday.
"But as the stimulus starts to feed into the economy – we expect probably in the fourth quarter of this year, which is a seasonal upturn in activity – that we will start to see better numbers come out of China."
She added this would "ultimately be the catalyst for quite a bounce in industrial commodity prices."
Read MoreWarning: China may trigger fresh rout in commodities
Even with Thursday's gains, prices of both Brent and WTI crude are around 20 percent lower since the start of 2015.
Bain told CNBC that the worst pressure on commodity prices from the rally in the U.S. dollar during 2015 was over.
"In our view, we see a little more appreciation of the dollar, but the main run of it is behind us now and the bad news for commodities is probably behind us as well," she concluded.
VIDEO2:2502:25Commodity stocks to bounce: Strategist Squawk Box Europe
Nick Nelson, head of European equity strategy at UBS, suggested that commodity stocks could be a buy in the long-term.
"I think the commodity stocks are going to be the high beats to bounce backs – obviously we get a big move up in the Shanghai Composite, bit of better news in China, then you'll see these things bounce. However, I'm not sure that's the trend for the next six to 12 months," he told CNBC on Thursday.
—By CNBC's Alexandra Gibbs, follow her on Twitter @AlexGibbsy.
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2bf9f3fbae6b7e06ca9b9fd02688e31f | https://www.cnbc.com/2015/08/27/cramer-china-could-cause-biotech-stocks-to-plunge.html | VIDEO9:3809:38Cramer: China & biotech - it's complicatedMad Money with Jim Cramer
Jim Cramer recently had an investor ask him what biotechs, old pharmaceuticals and new pharma have to do with what is happening with China. And while the question may seem quite simple, it is actually incredibly complicated to answer.
"On the one hand, biotech and pharma should have nothing to do with China. But on the other hand, they are deeply intertwined. And that intersection is both treacherous and full of opportunity," the "Mad Money" host said. (Tweet This)
Cramer noted that the fortunes in biotech and big pharma have very little to do with the fortunes in China. Something is clearly very rotten in China, but it isn't so bad that it could actually hurt sales of a big company like Pfizer or Celgene. People will get sick, and they will still take medicine.
So, on the surface it may appear that any weakness in China shouldn't affect these stocks. But that is not correct, and Cramer is worried that many people are making that assumption right now as they put money to work in these stocks.
The first complication has to do with the mechanics of money management. If China's economy is really headed downhill, then it could cause a worldwide recession. Many of the companies that provide raw materials to China will incur stressed balance sheets, and some will default.
On the one hand, biotech and pharma should have nothing to do with China. But on the other hand, they are deeply intertwined. And that intersection is both treacherous and full of opportunityJim Cramer
Rafe Swan | Getty Images
Thus, if a money manager who has a choice between stocks and bonds thinks a worldwide recession is possible, the manager will run from equities into bonds. Both biotech and old-line pharma stocks are in indices that would get pulled down from that.
Plus, in times of turmoil, speculation stocks tend to be under stress, along with the investors who love to trade speculation stocks. So, these speculative shareholders could sell off the biotech stocks from underneath them because the investor didn't have enough capital to meet margin calls.
In other words, the profits of a stock like Regeneron won't get hurt by China. But the stock could still go down if there is a worldwide selloff in all stocks, and then it could go down further if speculative investors can't cover the borrowed money they used to buy Regeneron.
A lousy shareholder base mixed with portfolio managers who want to take less risk doesn't exactly add up to biotech stocks that are brimming with earnings to fall back on.
"I like to think of biotech stocks as black-double-diamond runs on the slopes: they're fabulous to ski on when the power is perfect and the sky is blue, but foolhardy to go down on when it's frozen, stormy and icy," Cramer said. (Tweet This)
Big pharma stocks with dividend protection aren't a safe-haven from China, either.
Right now the U.S. is perceived as the strongest nation on Earth, and it is a magnet for money from all over the world. A strong dollar is great if you're buying goods from overseas, but it's terrible if you're selling goods overseas in a weaker currency and then have to translate it back into the dollar.
Read more from Mad Money with Jim Cramer
Cramer Remix: Bottom in oil could be close Cramer: This helped fuel 1-day monster rally Cramer: Housing stocks on a multi-year comeback
One reason why American pharmaceutical companies do so well is because they have huge international sales. But when the dollar gets stronger, these drug companies make less money than the analysts expect. That means estimates will get cut for big pharma when the dollar goes higher.
Ultimately, neither biotech nor big pharma stocks are truly safe from China.
"On an up day like this one, remember that if we get real worldwide turmoil, you have to let it bring down the stocks of companies you like to levels where good things can happen," Cramer added.
Just keep in mind that no matter how safe these companies seem, their stocks could come down on a global recession. And once the smoke clears, they will finally bounce to produce the steady gains investors love.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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23b30116a59e871e6292a77fb1a63831 | https://www.cnbc.com/2015/08/27/cramer-oil-strength-powered-the-market-good-news.html | VIDEO12:1812:18Cramer: Commodity strength took stocks higherMad Money with Jim Cramer
Though it might seem counterintuitive, all the wrong stocks lead the rally on Thursday—and it made complete sense to Jim Cramer. With crude oil making its biggest one-day move since March 2009, it was strong enough to power a rally in the averages.
So, how the heck can the market rally on higher oil? Cramer explained.
For ages any time Cramer saw mineral and mining stocks jump like they did on Thursday, he always assumed it was related to China. It made sense as the entire commodity bubble in the past decade stemmed from Chinese growth.
Lately, because of the declining growth in China, most investors had given up on commodities. So, does the rally in commodities mean they were premature in giving up on China? Maybe not.
"I think that today's torrid enthusiasm for the commodity stocks will prove to be short-lived because while it's terrific to see that oil has a pulse, the idea that China's prospective demand can somehow reverse the fortunes of crude seems just plain fanciful to me," the "Mad Money" host said.
Today though, when I see the commodities rally, when I see oil lift, that tells me we've got some breathing roomJim Cramer
Traders work on the floor of the New York Stock Exchange.Lucas Jackson | Reuters
But anything that shows that oil can go higher gave hope to the traders in fixed income that there will not be a collapse of the some $200 billion in bonds that oil companies have taken out to finance drilling. That was the heart of Thursday's move.
The reaffirmed confidence in the credit market encouraged some money managers to step up to the plate and buy all sorts of stocks, not just oil and mineral names.
This made complete sense to Cramer, because investors have often expressed concern to him that they think there is some sort of major event lurking in the commodities markets. They had feared that there was a bad company out there that could do some real damage, and Cramer started to believe it, too.
"Today though, when I see the commodities rally, when I see oil lift, that tells me we've got some breathing room," Cramer said. (Tweet This)
That means whoever could be in trouble out there due to the falling price of commodities now has a chance to raise money, make some sales, reposition and avoid catastrophe. Cramer thinks that Thursday's rally was more about doomsday avoidance than anything else.
Read more from Mad Money with Jim Cramer
Cramer Remix: Bottom in oil could be close Cramer: This helped fuel 1-day monster rally Cramer: Housing stocks on a multi-year comeback
But perhaps best of all, Cramer saw an establishment of a new pattern in the market where buyers emerge at the end of the day because they are afraid to miss something good. A good change!
"The strength in the commodity complex was capable of powering the vast bulk of this market higher, even stocks that should go lower when oil goes higher, because the commodity rally potentially eliminates some dastardly big bad event that we can't see or feel, but we know could be out there lurking," Cramer said.
It was a very nice breather and may have just taken big risk off the table.
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4c2309b8b57ff031afd40749c51097ee | https://www.cnbc.com/2015/08/27/cramer-remix-surprise-this-group-has-a-pulse.html | VIDEO1:2601:26Cramer: It may not be the end of the world for this groupCramer Remix
Though it might seem counterintuitive, all the wrong stocks lead the rally on Thursday—and it made complete sense to Jim Cramer. With crude oil making its biggest one-day move since March 2009, it was strong enough to power a rally in the averages. Finally, commodities have a pulse!
So, how the heck can the market rally on higher oil? Cramer explained.
For ages any time Cramer saw mineral and mining stocks jump like they did on Thursday, he always assumed it was related to China. It made sense as the entire commodity bubble in the past decade stemmed from Chinese growth.
Lately, because of the declining growth in China, most investors had given up on commodities. So, does the rally in commodities mean they were premature in giving up on China? Maybe not.
"The strength in the commodity complex was capable of powering the vast bulk of this market higher, even stocks that should go lower when oil goes higher, because the commodity rally potentially eliminates some dastardly big bad event that we can't see or feel, but we know could be out there lurking," Cramer said.
It was a very nice breather and may have just taken big risk off the table.
Read More Cramer: Oil strength powered the market—good news!
Traders work on the floor of the New York Stock Exchange.Lucas Jackson | Reuters
Cramer recently had an investor ask him what biotechs, old pharmaceuticals and new pharma have to do with what is happening with China. And while the question may seem quite simple, it is actually incredibly complicated to answer.
"On the one hand, biotech and pharma should have nothing to do with China. But on the other hand, they are deeply intertwined. And that intersection is both treacherous and full of opportunity," the "Mad Money" host said. (Tweet This)
Cramer noted that the fortunes in biotech and big pharma have very little to do with the fortunes in China. Something is clearly very rotten in China, but it isn't so bad that it could actually hurt sales of a big company like Pfizer or Celgene. People will get sick, and they will still take medicine.
So, on the surface it may appear that any weakness in China shouldn't affect these stocks. But that is not correct, and Cramer is worried that many people are making that assumption right now as they put money to work in these stocks.
"I like to think of biotech stocks as black-double-diamond runs on the slopes: they're fabulous to ski on when the power is perfect and the sky is blue, but foolhardy to go down on when it's frozen, stormy and icy," Cramer said. (Tweet This)
Read More Cramer: China could cause your biotech to nosedive
Cramer has spent a huge chunk of his 36 years of investing doing the homework and investing in individual stocks. He has always felt that individual stocks would lead to profit on the market. But these days, that methodology seems to have been thrown out the window.
"That's because many of the largest pools of actively managed money, the hedge funds, the high-frequency traders and even the big mutual funds are not focused at this moment on individual stocks," the "Mad Money" host said.
What are they focused on? The Fed.
Big money has noticed that the Federal Reserve has kept interest rates low, perhaps lower than they should, in spite of data that could suggest otherwise. Data such as the strong 3.7 percent gross domestic product for the second quarter suggest that if the U.S. were in a vacuum, then it is time for the Fed to begin to raise rates.
However, after the big selloff this week Cramer has noticed massive change in thinking of the Fed and those fears of a rate hike have subsided. He has heard several portfolio managers say that they can handle a rate hike. In fact, many just want to get it over with already.
Thus, Cramer thinks that the rally on Thursday was not due to portfolio managers celebrating that there will never be a rate hike. Rather, it was a "in Fed we trust" rally to confirm that investors trust the decision that the Fed will make.
Read More Cramer: This rally is all about the Fed—not stocks
Rafe Swan | Getty Images
Now that the negativity seems to be subsiding from the marketplace, Cramer decided to circle back to companies that do well in the current environment. That includes stocks that are well off their highs still courtesy of the latest selloff.
Popeyes Louisiana Kitchen is the fried chicken chain with about 2,420 franchised restaurants, mostly located in the U.S. The company had the misfortune of reporting on Wednesday last week, right in the middle of the decline.
Even though it reported a strong quarter, it was ignored and the stock was slammed along with everything else. Cramer speculated that this was exactly the right company to benefit from lower gasoline prices. Could it be time for the stock to fly higher?
To check in, Cramer spoke with Popeyes CEO Cheryl Bachelder.
"We have just been killing it with our kitchen innovation. The most recent one we just finished up was Rippin' Chicken with spicy habanero sauce, it was killer good. This is the way we keep the excitement going in our restaurants," Bachelder said.
Another stock that has had a rough time lately is Chegg, a small-cap company that for a long time was a provider of rental textbooks for high school and college students. But as the academia trend transforms to digital, Chegg has been trying to adjust into a digital provider of various services to help students fight the higher cost of education in the U.S.
Beyond textbooks, the company now gives students access to online homework help, assistance with course, scheduling and tools that assist high school students decide where to go to college and how to get scholarships. It now has 700,000 digital subscribers and they also make money selling advertisements to schools and brand partners.
Can its efforts for digital transformation power the stock higher? To find out, Cramer spoke with Chegg's chairman and CEO, Daniel Rosensweig.
"This is textbook season, and then immediately following becomes our homework-help season, and our tutoring season, and then internship season, and then high school students getting into college season. So we have diversified the company so well that we've got a 365-day a year business instead of four days a year," Rosensweig said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Ross Stores: "I've got to say hold. Why? Because I did not like that last quarter versus TJX which had a much better quarter, or Ulta which reported tonight that I really like."
Mannkind Corp: "The proof is in the pudding. We haven't seen the big sales bump yet. If we see a big sales bump, then I think there is going to be time. But we haven't seen it yet."
Read More Lightning Round: Golden stock to bank on
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0bf41bf9242705f2f2f1980c85f47ce8 | https://www.cnbc.com/2015/08/27/cramer-this-rally-is-all-about-the-fed-not-stocks.html | VIDEO7:2007:20Cramer: Downside to rate hike fathomableMad Money with Jim Cramer
Jim Cramer has spent a huge chunk of his 36 years of investing doing the homework and investing in individual stocks. He has always felt that individual stocks would lead to profit on the market. But these days, that methodology seems to have been thrown out the window.
"That's because many of the largest pools of actively managed money, the hedge funds, the high-frequency traders and even the big mutual funds are not focused at this moment on individual stocks," the "Mad Money" host said.
What are they focused on? The Fed.
Big money has noticed that the Federal Reserve has kept interest rates low, perhaps lower than they should, in spite of data that could suggest otherwise. Data such as the strong 3.7 percent gross domestic product for the second quarter suggest that if the U.S. were in a vacuum, then it is time for the Fed to begin to raise rates.
The Federal ReserveGetty Images
But the U.S. is not in a vacuum. So while the economy is quite strong the rest of the world is quite weak, with exception of Europe. Thus there could be detrimental impact to the global economy that could slow down the U.S. growth if rates were to be raised.
However, after the big selloff this week Cramer has noticed massive change in thinking of the Fed and those fears of a rate hike have subsided. He has heard several portfolio managers say that they can handle a rate hike. In fact, many just want to get it over with already.
Read more from Mad Money with Jim Cramer
Cramer Remix: Bottom in oil could be close Cramer: This helped fuel 1-day monster rallyCramer: Housing stocks on a multi-year comeback
"I am sticking with my view that as long as the Fed is pragmatic it will make the right move in either direction—stand pat or raising rates—and I am far more confident that the impact will be more mild as long as they have assessed the situation and acted the way they have said they would," Cramer said.
Thus, Cramer thinks that the rally on Thursday was not due to portfolio managers celebrating that there will never be a rate hike. Rather, it was a "in Fed we trust" rally to confirm that investors trust the decision that the Fed will make.
"What a relief it is to know that the grownups not the ideologues are really in charge. This huge sea change is confirmation that I am not alone in my thinking," Cramer added.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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3b561466fb089acb09a9be3d5a239104 | https://www.cnbc.com/2015/08/27/department-stores-duke-it-out-over-these-shoppers.html | Department stores duke it out over these shoppers | Department stores duke it out over these shoppers
From the Internet superhighway to the luxury shopping streets, and from low-price drug stores to airport travel shops, it's never been easier for consumers to snatch up beauty products on the go.
But while such an array of choice is good news for shoppers, the outcome hasn't been as positive for department stores, which used their role as a one-stop shop to lure in customers.
Now, after losing market share to a swath of competition over the past 10 years, the department store set is clawing back for a bigger slice of the beauty business.
A Sephora store inside a J.C. PenneySource: J.C. Penney
At Kohl's, for example, management is rolling out revamped beauty departments, as one piece of its turnaround plan.
J.C. Penney is upping its bet on the beauty segment through an expanded partnership with Sephora, and by repositioning its salon services.
Retail trends: Denim is hot, 'bro tanks' are not
And at Macy's, management is banking on the recently completed acquisition of Bluemercury to attract a new type of beauty customer to its portfolio of stores.
Though all three companies recently cited strength in their respective beauty businesses, the charge for growth won't come easy.
Despite department stores' share of beauty sales rebounding from 11.7 percent in 2010 to 12.7 percent last year—representing $9.7 billion—that's still shy of the 13.6 percent capture it had on the market one decade ago.
"Department stores face competition from everywhere within the retail spectrum," said Nicholas Micallef, beauty and personal care analyst at Euromonitor research firm.
Although many shoppers are gravitating toward easier-to-navigate specialty shops, department stores have managed to recover some of their share by focusing on the high-end beauty market, he said. That portion of the industry outperformed the lower-price mass segment last year, thanks in part to the improving economy.
Bras: The 'athleisure' trend's latest casualty
Department stores have capitalized on this trend by stocking up on pricier products that are marketed as having a dual purpose such as a foundation with sunscreen or anti-aging properties, as well as niche fragrances that have become popular with shoppers.
As part of Kohl's remodeled beauty departments, for example, the low-price retailer rolled out a new lineup of national beauty and fragrance brands, including Bliss and Tweezerman.
On the company's most recent earnings call, CEO Kevin Mansell said that the 900 stores featuring its new beauty formats continue to post sales that are 2 percent higher than the remaining 300 in its portfolio.
VIDEO6:4406:44Cramer: JC Penney will kill competitionMad Money with Jim Cramer
Competitor J.C. Penney is targeting the beauty segment in two ways. First, it's expanding on its partnership with specialty shop Sephora, a segment that experienced another quarter of double-digit same-store sales growth in the most recent period.
Penney's recently launched the Sephora brand on its website, and CEO Marvin Ellison said that it will continue to expand the company's presence in its stores, as well as modernize the area outside of these shops. That could encourage shoppers visiting Sephora shops to browse elsewhere in the department store.
"Sephora not only drives traffic and sales at J.C. Penney, it serves as a point of differentiation that cannot easily be replicated in our industry," Ellison told investors.
Fastest-growing retailer isn't a household name
The department store is also moving forward with the rebranding of its salon business, which is expected to roll out nationwide in 2016. Penney's has said that its salon customers typically visit the store eight times a year and spend twice as much as the average customer.
Macy's in March completed its $210 million acquisition of luxury beauty retailer Bluemercury, which currently has 66 stores and another 10 planned by the end of the year. This fall, the mid-level department store will open four Bluemercury shops within Macy's stores.
Though there are no plans yet to launch the nameplate's spa services in its Macy's locations, CFO Karen Hoguet said earlier this month that the company is "absolutely" considering the idea.
With so many retailers gunning for a piece of the $11.2 billion prestige beauty market, Micallef said the ones with the most upside are those that do more than just sell products, and offer something extra.
He pointed to Saks Fifth Avenue's fragrance library, which showcases curated scents in an innovative way, as an example.
"The winners will be those that actually provide a certain experience," he said.
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4dcac4c635b026507685dcc675f392fa | https://www.cnbc.com/2015/08/27/dollar-bulls-brightened-up-after-data-risk-appetite-improves.html | Dollar gains on rate remarks by Fed's Fischer, positive US data | Dollar gains on rate remarks by Fed's Fischer, positive US data
Getty Images
The dollar rose to one-week highs on Friday, for a fourth straight session of gains, on rate-hike remarks by a senior Fed official and generally positive U.S. data that supported the notion the world's largest economy was on a stable growth path.
The dollar index, a gauge of the greenback's value against six major currencies, bounced back from seven-month lows struck on Monday and was on track for its largest weekly gain in a month as financial markets calmed down after recent turmoil.
The index extended gains after Federal Reserve Vice Chair Stanley Fischer said the U.S. central bank can't wait for the case on hiking interest rates to be overwhelming. But he was undecided whether to raise rates in September.
Data released earlier showed U.S. consumer spending picked up 0.3 percent in July as households bought more automobiles, although U.S. consumer sentiment dipped a bit in August amid the global stock market turmoil.
VIDEO3:0403:04Are there any safe haven currencies?
"Overall, markets are finally starting to calm down and the economic data is relatively supportive of the dollar," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York.
"Once the panic is out of financial markets, what you will see is that the underlying growth in the U.S. remains on target. Even if there is no action in September, the Fed remains on target with regard to tightening monetary policy."
Some Fed officials on Friday were unfazed by the recent market turmoil and pushed for a rate hike.
"Nothing has happened here that is so radically changing the U.S. outlook that the basic trajectory of policy would change," said St. Louis Fed President James Bullard in an interview on the sidelines of a global central bankers' conference in Jackson Hole, Wyoming.
Read MoreChina's 'QT' is the real global economic threat
Cleveland Fed President Loretta Mester echoed Bullard's sentiment and said the U.S. economy still could handle a modest rate hike, though she did not commit to backing a move next month.
In afternoon trading, the dollar index was up 0.51 percent at 96.10, having hit a one-week high of 96.324. After diving to a seven-month trough of 92.621 on Monday when global stock markets went into a tailspin, the index has bounced 3.0 percent the last four days.
Against the yen, the greenback rose 0.19 percent to 121.35 yen, a remarkable recovery from Monday's seven-month low of 116.15.
The yen showed little reaction to data showing Japan's inflation slowed to zero, its weakest in two years.
The euro, meanwhile, fell 0.49 percent to $1.1187, after hitting a session low of $1.1155, well off its lofty perch above $1.1700 reached on Monday when the selloff in global markets and worries about a Chinese slowdown led investors to unwind euro-funded carry trades.
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97f84b2cbe19bbd86ccdfa0179731521 | https://www.cnbc.com/2015/08/27/dow-futures-up-as-the-street-hopes-for-another-rally.html | Dow futures up as the Street hopes for another rally | Dow futures up as the Street hopes for another rally
VIDEO1:3501:35US stocks aim to extend rallystocks
U.S. stock index futures pointed to a sharply higher open Thursday, with the Dow indicating gains of nearly 200 points at the open, following the stellar close seen on Wednesday.
Investors will eye a key meeting of central bankers at Jackson Hole and some major economic data releases. The annual Economic Policy Symposium in Wyoming start on Thursday and brings together academics, financial market participants and many of the world's leading central bankers.
Read MoreStocks are ready for more rock and roll
The event will be eyed for signals as to near-term monetary policy action in the U.S., although many monetary policymakers are seen opting out, including U.S. Federal Chair Janet Yellen and Daniel Tarullo, a member of the Fed's Board of Governors.
Thursday's markets could first be in for a dose of positive news on the U.S. economy, with the second estimate of second-quarter GDP out at 8:30 a.m. ET. This is expected to be revised up sharply from the first read of an annualized 2.3 percent.
Initial claims data will also come at 8:30 a.m., followed by pending home sales at 10:00 a.m. ET.
Read MoreHow Europe's businesses are coping with China
Some major earnings are also due for release Thursday, including Dollar General, Tiffany and Signet Jewelers are before market open. Autodesk, GameStop, Smith & Wesson and Splunk are due after the bell.
After five days of gut-wrenching, triple-digit declines, the Dow surged 619 points into Wednesday's close, finishing the day at 16,285. The S&P 500 was up nearly 73 at 1,940.5.
Stock markets in Asia and Europe saw strong gains Thursday, with China's Shanghai Composite index closing up 5.4 percent to reclaim the critical 3,000 mark, tracking the upbeat sentiment across the region underpinned by Wall Street's biggest one-day gain since 2011 overnight.
The positive close in China marked the first higher finish in five trading sessions after sentiment in the U.S. managed to outweigh the fears surrounding China's slowing economy, which has been partly responsible for the recent sell off seen in global stocks.
In Europe, equities followed suit, with the pan-European Stoxx 600 up 3 percent in mid-morning trade.
Comments from New York Fed President William Dudley, who said the case for a U.S. interest rate hike in September has become less compelling, also helped lift markets. However, he did not say September was off the table, instead adding that the Fed would review data and market conditions.
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412b04aef4cbddcc3339ecc84c6529d6 | https://www.cnbc.com/2015/08/27/e-using-drones-to-monitor-their-employees.html | Managers are using drones to monitor their employees | Managers are using drones to monitor their employees
Getty Images
Construction workers in Sacramento, Calif., have a new kind of boss: A drone. Unmanned flying cameras help managers watch out for issues that might slow progress of the new Kings Stadium, according to MIT Technology Review.
Drones fly around the structure once per day, creating a 3-D image of the building that managers at Turner Construction can compare to renderings of architectural plans. The goal is to show managers where the project might be falling behind schedule.
Turner Construction spokesman Christopher McFadden said the drones have not created any privacy issues, since they do not fly close enough to individual employees. Rather, the flyover gives a faster, more accurate view of issues that managers might normally address in a walk-through of a construction site.
"If we see on the footage our steel project is behind, our reaction is going to be the same as we were walking the job," McFadden told CNBC. "We'd call our steel contractors, talk through the issues, get back on schedule, and more accurately plan and work for the days and weeks ahead."
Read More Do we need to put drones on a tighter leash?
McFadden likened it to a report due for a client at the end of the week: Instead of checking on your progress every few hours or days, your boss can log in and see how many words you've written at any given time.
"We are not monitoring individual workers. We are monitoring the progress on the project generally... a big picture type of angle," he said.
Turner is not alone in looking in to this technology, with other construction companies and agriculture companies using drones to manage large sites, MIT Technology Review said.
Some police forces are looking at the possibility of using drones in their work, The Verge reports. And white collar workers have had their emails and computers monitored by their bosses for quite some time.
While Turner said they aren't monitoring individual workers, researchers are developing a more comprehensive drone system that could see how much time employees spend on each task, MIT Technology Review reports.
For more on the research, read the full story at the MIT Technology Review.
Read More There is now a film festival…for drones
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4048510ba9b8b096045f7a541bf877d2 | https://www.cnbc.com/2015/08/27/early-movers-tif-sjm-dg-mik-csx-tsla-stj-ges-pvh-more.html | Early movers: TIF, SJM, DG, MIK, CSX, TSLA, STJ, GES, PVH & more | Early movers: TIF, SJM, DG, MIK, CSX, TSLA, STJ, GES, PVH & more
Trader on the floor of the New York Stock Exchange.Getty Images
Check out which companies are making headlines before the bell:
Tiffany—The luxury goods retailer earned an adjusted 86 cents per share for its latest quarter, missing estimates by 5 cents. Revenue was also below forecasts, with Tiffany pointing to the negative effects of a strong dollar and challenging economic conditions in certain markets.
J.M. Smucker—The food producer earned an adjusted $1.32 per share for its latest quarter, 9 cents above estimates, with revenue also above analyst forecasts. Smucker was helped by a jump in coffee sales, with lower prices spurring more consumer demand.
Dollar General—The discount retailer beat estimates by 1 cent with quarterly profit of 95 cents per share, though revenue was slightly below forecasts. Dollar General said both customer traffic and average purchases grew during the quarter.
Michaels—The crafts retailer came in 1 cent above estimates with earnings of 17 cents per share for its latest quarter, with revenue slightly above forecasts as well. Michaels said its profit margins expanded and comparable store sales rose by 2.9 percent.
CSX—The railroad operator's stock was upgraded to "buy" from "hold" at Stifel Nicolaus, which noted an 18 percent drop for the stock since the company reported earnings in mid-July. Stifel feels CSX is the best performing eastern-based railroad and that it has been exhibiting operational improvement.
Tesla—Consumer Reports gave Tesla's new P85D version of its Model S a perfect 100 score in testing—calling it "the best-performing car that Consumer Reports has ever tested."
St. Jude Medical—The Financial Times reported that Abbott Labs is preparing a $25 billion cash and stock bid for St. Jude, and that it is working with both Citi and JPMorgan Chase on the transaction.
Guess—The apparel maker reported quarterly profit of 21 cents per share, 6 cents above estimates. Revenue also came in above forecasts, but the stock is being pressured by a weaker-than-expected forecast for the rest of the year. Guess is among the companies hit hard by the effects of a strong dollar, with a large portion of its sales taking place overseas.
PVH—PVH earned an adjusted $1.37 per share for the latest quarter, 8 cents above estimates. Revenue was slightly above forecasts, and the maker of the Tommy Hilfiger, Calvin Klein, and Van Heusen clothing brands also raised its full-year outlook.
Williams-Sonoma—The company matched estimates with quarterly profit of 58 cents per share, with revenue slightly above Street consensus. However, the housewares retailer issued a weak third quarter outlook, and said it is still feeling the effects of this year's West Coast port disruptions.
Gap—The apparel retailer will end on-call shifts at its stores and improve its scheduling policies, in an agreement announced by the office of New York State Attorney General Eric Schneiderman.
Wal-Mart—Wal-Mart will start its holiday layaway plan on Friday, two weeks earlier than last year. About 40,000 items will be available under the payment plan, about 20 percent more than a year ago.
American Express, Bank of America—The two may be dropped as partners at Fidelity Investments, according to a Bloomberg report. The report said Visa and MasterCard are in talks with the brokerage giant to strike new partnerships.
Seadrill—Seadrill delayed delivery of 10 new rigs and ships for up to two years, amid what the oilfield services company calls "challenging market conditions."
Dish Network, Sinclair Broadcasting—The two struck an agreement on a new retransmission deal that ends a short blackout of Sinclair's local TV stations for Dish subscribers.
Workday—Workday forecast third quarter billings below analyst forecasts,pressuring the stock. The provider of human resources and financial cloudapplications also said it took more money up front for older contracts,resulting in smaller payments now.Workday forecast third quarter billings below analyst forecasts, pressuring the stock. The provider of human resources and financial cloud applications also said it took more money up front for older contracts, resulting in smaller payments now.
Questions? Comments? Email us at marketinsider@cnbc.com
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2321e976ec12fb6cbca040830dcbc010 | https://www.cnbc.com/2015/08/27/europe-stocks-markets-federal-reserve-us-rebound-china-economy.html | Europe closes sharply higher on US GDP, oil boost | Europe closes sharply higher on US GDP, oil boost
VIDEO1:3501:35Europe closes sharply higher; US GDP, oil boost hope
European markets ended sharply higher on Thursday, as U.S. and Asian markets rebounded and oil prices rocketed.
The pan-European STOXX 600 index cheered at the close, finishing 3.5 percent up. London's FTSE 100 ended 3.6 percent higher, while France's CAC and Germany's DAX saw a 3.5 and 3.2 percent pop, respectively.
China's Shanghai Composite closed 5.4 percent higher on Thursday, and after the markets closed in Asia, reports emerged that China had expanded its debt-for-bond swap program for local governments to 3.2 trillion yuan ($499.7 billion), from 2 trillion yuan.
Oil was also a big topic of discussion, as both Brent crude and U.S. crude prices surged 8 percent.
On the data front, the second estimate of second-quarter GDP for the U.S. came in at 3.7 percent, topping the first read of an annualized 2.3 percent.
U.S. stocks attempted a bounce for a second consecutive day on Thursday, boosted by the GDP data.
In Europe, French business morale in August rose to 100, its highest level in four years, and up from 99 in the previous month, according to an index released by France's national statistics agency INSEE.
After sinking 18 percent on Wednesday, shares in Swiss agricultural chemicals maker Syngenta rose 4.9 percent by Thursday's close, as investors speculated that management might be forced into propping up shares after U.S. seeds giant Monsanto dropped its pursuit of the company.
The STOXX 600 basic resource and oil and gas sector saw a strong rebound on Thursday as commodity prices bounced and Chinese stocks finished the day higher.
Anglo American, for instance, ended up 9.3 percent.
There were just a handful of stocks in the red on Thursday. French spirits maker Pernod Ricard on Thursday reported weaker than expected full-year profit, hit by an impairment charge on Absolut vodka. Shares in the company finished down 1.7 percent.
Shares in mobile chipmaker Gemalto tanked over 12 percent after the company said the closure of its U.S. mobile payment service Softcard in the second half of the year would have an impact on its ability to grow mobile revenues.
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80c9e0923438bc7a2168a6a4d8d9f175 | https://www.cnbc.com/2015/08/27/exchanges-barclays-win-dismissal-of-us-high-frequency-trading-case.html | Exchanges, Barclays win dismissal of US high-frequency trading case | Exchanges, Barclays win dismissal of US high-frequency trading case
Major U.S. stock exchanges and Barclays on Wednesday won the dismissal of nationwide litigation in which pension funds and other investors accused them of rigging markets to benefit high-frequency traders.
U.S. District Judge Jesse Furman in Manhattan said federal law affords exchanges "absolute immunity" from the plaintiffs' key claims, including over the creation of "complex order types" and proprietary data feeds that can benefit rapid traders, because of their status as self-regulatory organizations.
Traders work on the floor of the New York Stock Exchange.Getty Images
In a 51-page decision, Furman also said the plaintiffs did not show they reasonably relied on Barclays' misrepresentations about the safety of its Barclays LX "dark pool," including that they were not at risk of being exploited by fast traders.
The lawsuit accused Barclays and seven exchanges including Nasdaq, Intercontinental Exchange's New York Stock Exchange, BATS Global Markets and CHX Holdings's Chicago Stock Exchange of giving high-frequency traders favored treatment, costing less-favored investors billions of dollars.
Several regulators are also investigating dark pools, and New York Attorney General Eric Schneiderman has sued Barclays.
High-frequency traders use computer algorithms to gain split-second trading advantages, and were accused of rigging markets in Michael Lewis' 2014 best-seller "Flash Boys."
Furman alluded to Lewis in saying it is for Congress and U.S. authorities such as the Department of Justice and Securities and Exchange Commission to level the playing field for investors, rather than let private plaintiffs do their work.
"Lewis and the critics of HFT may be right in arguing that it serves no productive purpose and merely allows certain traders to exploit technological inefficiencies in the markets at the expense of other traders," he wrote. "They may also be right that there is a need for regulatory or other action from the SEC or entities such as the exchanges and Barclays. Those, however, are debates and tasks for others."
Patrick Coughlin, a lawyer representing several pension fund plaintiffs, said: "We're disappointed that the judge thought the exchanges deserved immunity as to complex order types. The way they were implemented disadvantaged our clients. We will review the opinion and determine whether to appeal."
Barclays said it is pleased with the "thorough and well-reasoned" decision. The exchanges declined to comment.
Furman said one plaintiff, Great Pacific Securities may amend its lawsuit against Barclays, calling it premature to say doing so would be futile. A lawyer for the Costa Mesa, California-based firm was not immediately available for comment.
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a437a4a1bd4284cade3a0b093d4b91db | https://www.cnbc.com/2015/08/27/facebook-launches-m-to-rival-siri-cortana-google.html | Facebook launches Siri rival…with real humans | Facebook launches Siri rival…with real humans
VIDEO0:3800:38Facebook tests new virtual assistantSocial Media
Facebook has launched its own personal digital assistant within its Messenger app in a bid to challenge Apple's Siri, Google Now and Microsoft's Cortana.
But Facebook's proposition, called "M," comes with a difference. Instead of being purely based on artificial intelligence (AI), it also uses real people – almost like customer service representatives – to complete tasks and answer queries.
"It's powered by artificial intelligence that's trained and supervised by people," David Marcus, vice-president of messaging products at Facebook, wrote in a post on the social networking site.
"Unlike other AI-based services in the market, M can actually complete tasks on your behalf. It can purchase items, get gifts delivered to your loved ones, book restaurants, travel arrangements, appointments and way more."
Facebook
Facebook has employed a team of so-called "M Trainers" – real humans – to answer questions that users are asking M.
The system works by a user typing a question to M. The request, be it to book a restaurant or recommend a gift for a friend, will be carried out by M. But a user won't know whether the AI side of M has carried out the task, or one of the human helpers.
This could potentially make it more useful in completing tasks than any of its rivals, which rely on information such as the searches you are doing via your web browser to provide relevant information.
Facebook’s new photo app uses artificial intelligence
M doesn't use data from users' social Facebook data to complete tasks, but Marcus told Wired magazine that that might change "at some point, with proper user consent."
As well as putting out something to rival its fellow tech giants, Facebook is now looking to disrupt the dominance that Google has in search by making its Messenger app the go-to place to find information.
When a user wants to find information, they Google it or use Microsoft's Bing search engine, for example. But with M, Facebook is able to offer its own platform that can serve up answers and carry out tasks.
M is currently in a trial phase in the U.S. and Marcus notes that it Facebook is in an "early journey" to build the digital personal assistant into an "at-scale service." If Facebook Messenger's 700 million users take this up, then it could also become a key revenue stream.
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dc27edf5f7acbed0848da667d12d7098 | https://www.cnbc.com/2015/08/27/facebook-milestone-1-billion-people-used-it-in-a-day.html | Facebook hits milestone: 1B people in one day | Facebook hits milestone: 1B people in one day
VIDEO0:4000:40A big day for FacebookSocial Media
It's official: Facebook is truly a social media giant.
CEO Mark Zuckerberg took to the social platform Thursday to inform the world of a new record for the site. "For the first time ever, one billion people used Facebook in a single day," Zuckerberg said. On Monday, one in seven of the people on Earth used Facebook.
The 31-year-old CEO used the opportunity to thank Facebook's 1.5 billion monthly active users.
"I'm so proud of our community for the progress we've made," he wrote. "Our community stands for giving every person a voice, for promoting understanding and for including everyone in the opportunities of our modern world."
Facebook Tweet
The site, which launched in 2004, began as an online directory for college students to connect via personal profiles. Shortly after launch, Zuckerberg was a guest on CNBC's "Bullseye" and was asked whether his new site would be "the next big thing."
"When we first launched we were hoping for maybe 400 or 500 people … so who knows where we're going next?" a young Zuckerberg modestly stated when discussing the magnitude of his site. "Maybe we can make something cool."
11 years and a "cool" 1 billion daily active users later, Forbes ranks Zuckerberg as the 10th richest person in the world with a net worth of $39.4 billion.
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6329393bf1f798319efdeb4a873f6552 | https://www.cnbc.com/2015/08/27/funds-scramble-to-assess-computer-glitch.html | Funds scramble to assess computer glitch | Funds scramble to assess computer glitch
Investment firms and regulators are scrambling to find out how many mutual funds and exchange traded funds may have reported inaccurate prices during the market turmoil of recent days, as a result of a computer glitch that affected one of the largest custodian banks.
Bank of New York Mellon, whose computer systems are used to calculate the net asset values, or NAVs, of many funds, has been suffering problems since the start of the week because of a failed software upgrade by one of its suppliers.
The resulting confusion could take many days to clear up, said people at several of the companies affected, and it was unclear whether investors may have ended up buying or selling funds at inaccurate prices during the high-volume trading of the past few days.
The Bank of New York Mellon on Wall Street, New York.Scott Mlyn | CNBC
One of the leading exchange-traded fund providers, Invesco PowerShares, warned on Wednesday that its family of funds may not be able to disseminate accurate price information as a result of problems at BNY Mellon. Trading is currently based on the prior day's NAV, Invesco said.
Other firms to have been affected include Prudential Financial, Federated Investors and Guggenheim Partners, said people familiar with the firms or public statements.
One firm, First Trust Advisors, said it had published inaccurate NAV figures for its ETFs which it now knew to be off by more than 1 per cent.
More from the Financial Times:BNY Mellon pays $15m to settle SEC probe Activists take aim at BNY Mellon chiefBNY Mellon profits buy time with activists
Some big fund complexes have not been affected, however, including Fidelity, which calculates its own NAVs, and State Street Global Advisors, which is owned by BNY Mellon's rival custodian bank State Street and uses its services.
Problems began on Monday as a result of a failed software upgrade by SunGard, which BNY Mellon uses as an outside supplier. The glitch was unrelated to the dramatic market moves of early Monday morning. The Securities and Exchange Commission, which was already monitoring markets for signs of trouble at ETFs, has been working with BNY Mellon and fund companies since the issue came to light.
With SunGard out of action, BNY had to rely on alternative means of calculating NAVs, and is now going back and calculating the official figures. For the most simple ETFs and other funds, there are not likely to be major discrepancies, market players said, but in more complex funds, it is possible prices were inaccurate.
It was not immediately clear how investors might be compensated if any traded on inaccurate information.
BNY Mellon said the system was returning to normal. "The SunGard system became available, in a limited capacity, late in the day on Tuesday," it said. "We are working with SunGard to resume normal processing as soon as possible."
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6e95618445aea75e11e457a00ab04d57 | https://www.cnbc.com/2015/08/27/gold-eyes-biggest-drop-in-five-weeks-on-us-data-fed-hike-view.html | Gold rises on technical dealings but posts worst week in a month | Gold rises on technical dealings but posts worst week in a month
Getty Images
Gold rose on Friday as technical indicators and suggestions the U.S. central bank may delay a rate rise provided support, but the metal was still on track to post its biggest weekly drop in five weeks amid dollar strength and strong U.S. economic data.
was up 0.8 percent at $1,134.26 an ounce, but still down more than 2 percent for the week.
U.S. gold for December delivery rose 1 percent to settle at $1,134 an ounce.
VIDEO2:2002:20Gold very good for diversification: ProClosing Bell
The gains came as U.S. Federal Reserve officials suggested the central bank may delay tightening monetary policy beyond next month due to turmoil in financial markets.
A rate rise would dim the appeal of non-interest bearing assets like gold.
"With that in mind, there's a little bit of breathing room," said Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago, noting that this "breathing room" allowed technical factors to take over. "This is a classic retracement from low to high."
Gold prices crossed a key technical retracement level between July's 5-1/2-year lows and last week's 6-1/2-week highs, providing a chart-based boost, Tesfaye said.
Nonetheless, bullion still plunged 2.3 percent on the week, as a slew of U.S. economic data suggested stronger growth.
Read MoreGold coasts along as stocks perk up, possible Fed hike delay supports
U.S. consumer spending picked up in July, data showed on Friday. This followed Thursday's upward revision in U.S. economic growth in the second quarter to 3.7 percent from the initial estimate of 2.3 percent.
"The big question for next week is whether the anxiety that crept into the market on Aug. 10 when China devalued its currency is going to continue," Saxo Bank senior manager Ole Hansen said.
Weak gold prices have failed to spur physical demand in Asia, with premiums in India slipping and investors in China still hooked on volatile equities.
Palladium rose sharply for the second straight session on physical buying and technical dealings after hitting five-year lows on Wednesday, Tesfaye said. It was up 4.6 percent to $585 an ounce on Friday, for its largest two-day gain since 2008.
Spot silver was up 0.6 percent at $14.56 an ounce, having fallen to a six-year trough of $13.93 on Wednesday. Silver has dropped nearly 5 percent this week, its steepest such decline since February. Platinum was up 1.5 percent at $1016.50 an ounce.
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865fa6f306115eed2f1ef6592a96ab16 | https://www.cnbc.com/2015/08/27/how-europes-businesses-are-coping-with-china.html | How Europe’s businesses are coping with China | How Europe’s businesses are coping with China
VIDEO1:5501:55China steps mean more business: CEO
VIDEO1:0701:07 Chinese slowdown was expected: Deputy CEO
VIDEO2:5702:57China's 'huge contagion' on EM marketsWorldwide Exchange
VIDEO2:4202:42France much accelerate reforms: LobbyistSquawk Box Europe
VIDEO1:3101:31How French unemployment impacts Adecco
China might be rattling global markets in a big way at the moment, but not all business leaders thinks it's about to drag the world's economy into another crisis.
"China is a growing economy, but is also the number two economy worldwide. So yes, (China) slowdown could mean some slowdown elsewhere in the world, yet it could not drive a crisis. Absolutely not, I do not believe it," Jean-Louis Chaussade, CEO of French utility firm, Suez (Environnement), told CNBC on Wednesday.
He was speaking at a conference held by French business lobby, Movement of the Enterprises of France (MEDEF), in Jouy-en-Josas, France, where China has been a hot topic after days of extreme volatility on global markets following growth concerns.
Like a number of other sectors in Europe, utilities have come under pressure this week, but Chaussade insisted that he wasn't concerned about a Chinese crash, as the country was doing its best to control the situation.
Read MoreChina's hard landing: Has it been priced in?
"For Suez, the concerns are very limited. For the last five-to-six years now, the Chinese government has been very much concerned about environmental consequences of the economic growth of the country. They've been taking steps to ensure better environment control," Chaussade told CNBC Wednesday, adding that this has meant more business for his company.
"I do not believe the slowdown that we are facing should be a problem for Suez Environnement. Actually, I do believe we are going to continue to grow," Chaussade added, dismissing the idea of another global crisis.
Luo Yunfei | ChinaFotoPress | Getty Images
The CEO of Adecco France – part of one the world's largest HR companies, Adecco – agreed and said he didn't think slowing Chinese growth would have a huge impact on employment.
"Our growth rate in China is very, very important. Today it's a main market for us in terms of the number of people in temporary work," Christophe Catoir told CNBC. "The growth rate is one of the best today -- we can imagine the growth may be slower, but not too much, so the impact is not huge."
Read MoreMeet China's Lord of the Stocks
But not everyone's so optimistic looking ahead. On Tuesday, Reuters reported that France's economic minister, Emmanuel Macron, said recent developments in China posed a risk to the global economic recovery and should not be underestimated.
Bruno Lafont, honorary chairman at building materials company Lafarge Holcim, added that China is such a large economy, every change in growth will have a global impact.
"Today we are living with several adjustments. However if you compute correctly what the IMF is saying about global growth – global growth will remain very positive in years to come, and China will not be the only one (with) influence," he told CNBC.
"Of course turbulences are there and we have to cope with those turbulences and we have to react."
—By CNBC's Alexandra Gibbs. Florence Viala contributed to this report.
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a12009877c62ce8f3372033dcdefec29 | https://www.cnbc.com/2015/08/27/icahn-takes-stake-in-freeport-mcmoran-making-him-10th-biggest-holder.html | Icahn becomes top Freeport-McMoRan shareholder | Icahn becomes top Freeport-McMoRan shareholder
VIDEO3:2103:21Icahn: Freeport-McMoRan undervaluedFast Money
VIDEO1:3801:38Icahn reports stake in Freeport-McMoRanClosing Bell
VIDEO1:1401:14 Freeport-McMoRan blinking: Cramer
Activist investor Carl Icahn reported a stake of 88 million shares in Freeport-McMoRan after the closing bell Thursday, making him its largest shareholder.
The mining company's stock spiked 28 percent during the regular session, before Icahn's 8.5 percent stake became public. It added 20 percent in extended trading.
Freeport-McMoran's performance has suffered amid a prolonged drop in commodities prices, including an 18 percent dip in copper this year. On Thursday, the company said it would cut its 2016 capital expenditure estimate by 25 percent, or $700 million, as part of a previously announced review of operations.
Carl Icahn at Delivering Alpha 2015 in New York.Adam Jeffery | CNBC
Icahn could address capital expenditure and executive pay practices with the company's management, Dow Jones reported. The report said he would also look to trim high-cost production.
Read MoreCould commodities make a real comeback soon?
Freeport-McMoRan last month posted a net loss of $4.16 per share for the first six months of the year. The shares have skidded more than 50 percent this year.
Icahn could seek representation on the company's board but had not talked to leadership as of Wednesday, according to the wire service.
"FCX maintains an open dialogue with our shareholders and welcomes constructive input toward our common goal of enhancing shareholder value," Freeport-McMoRan said in a statement.
Correction: An earlier headline misidentified the size of Carl Icahn's stake. He owns 88 million shares of Freeport-McMoRan.
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b263ca1489d9b3619bef7a7f7ece387f | https://www.cnbc.com/2015/08/27/india-food-watchdog-leaves-foreign-groups-wary.html | India food watchdog leaves foreign groups wary | India food watchdog leaves foreign groups wary
Dhiraj Singh | Bloomberg | Getty Images
Nestlé's Maggi noodles were not the only food to disappear from India's shop shelves in June, after regulators banned the snack amid concerns over lead levels. Anglo-Dutch conglomerate Unilever and Japan's Nissin Foods recalled their Knorr Chinese noodles and Top Ramen, while other companies quietly stopped selling other products, such as jams.
These foods were not withdrawn because of safety concerns, but rather fear of falling foul of the four-year-old industry regulator, the Food Safety and Standards Authority of India.
In its ban on Maggi, the FSSAI had censured Nestlé for selling a new flavour, Maggi Oats Masala Noodles, without official consent. Scarcely noticed by a public gripped by the debate over toxic lead, the reprimand alarmed other food companies, which had also been selling products to Indian consumers while awaiting formal permission.
VIDEO0:3800:38Burger King suggests burger truce with MCDRestaurants
"It was a commonly accepted practice for food companies to apply for a licence and simultaneously launch in the marketplace, assuming they would get it," says Nitin Mathur, an industry analyst for SG Corporate and Investment Banking. "But Nestlé was an eye-opener for everyone. What they thought was an accepted practice wasn't acceptable any more."
The voluntary withdrawal of products reflects mounting tension between global and domestic food companies — eyeing India's vast market potential — and the food safety regulator, seeking to assert its authority.
More from the Financial Times:
India court overturns Nestlé Maggi noodles ban India seeks $100m damages from Nestlé over Maggi noodles Nestlé India slips into loss after Maggi noodle ban
Indians consume $63 billion worth of packaged food — including sweets, snacks and packaged drinks — each year, compared with $220 billion in China. But sales of packaged foods are poised to rise rapidly in India — to $88 billion by 2019, according to KPMG. This is being driven by a young, increasingly affluent and time-pressed population moving away from traditional cooking methods and eating habits.
Western companies are gearing up. Both Coca-Cola and rival PepsiCo are in the midst of $5 billion Indian expansions. Mondelez International, maker of Cadbury chocolate and Oreo biscuits, is building a $190 million, 54-hectare plant in India — its largest in Asia. Chocolate-maker Mars International is spending $160 million on its first plant in the country, while Kellogg, the US cereal maker, has invested $100 million in the past 18 months.
Large domestic food companies, such as ITC, Britannia Industries, and Dabur, are also expanding capacity and diversifying into new categories. Imports of premium processed food — including Italian pasta and European olive oil, meats and cheese — are growing fast too.
"All the big food manufacturing companies are looking at India as a high potential market because the penetration of categories is very, very low," says Rajat Wahi, a partner at KPMG, the professional services firm. "All the fast-moving consumer goods companies are looking at significant growth in the next 10 years."
But en route to Indian dining tables, food companies are wrestling with a murky, unstable regulatory environment, overseen by a young watchdog with a mission to ensure basic food safety and promote "healthy, wholesome food".
Read MoreIndians cry foul over soaring onion prices
In recent months, the FSSAI has rejected a number of Starbucks' syrups and sauces, one of its decaf coffees and a spiced tea. It has also banned Kellogg's Special K Red Berries, a General Mills Choco Lava Cake, and mayonnaise and salad dressings made by Field Fresh, Del Monte Foods' Indian joint venture. Imported foods, including perishables such as cheese, have often faced long delays in ports because of the regulator's objections over the food or its labelling.
The FSSAI defends its approach, however. "If industry is coming out with a product, it has to be safe food, and it has to be wholesome," says Yudhvir Singh Malik, chief executive. "My plea to industry is: whatever you are putting out, please think that your child is also eating it."
For decades, India had multiple government departments charged with preventing adulteration — which is rampant — of basic products such as milk and cooking oils. In 2006, India adopted a new food safety law with a broader agenda, including promoting healthy food.
But India has fixed standards for only roughly 370 food items, compared with the 5,000 to 10,000 items common in developed markets. All other food items — except traditional Indian food — have been subjected to a controversial approval process in which regulators decide case by case whether to allow a food product or supplement to be sold in India.
As part of the process, companies have been required to submit their exact recipes and formulations for official scrutiny. But industry has complained that the FSSAI decision-making process is both time-consuming and arbitrary, with products rejected on numerous whimsical grounds — including that they should be a different colour.
"There were no standards," says Dheeraj Nair, a lawyer who represented food supplement manufacturers in a court challenge to the FSSAI process. "It was left to the whims and fancies of whomever was sitting in the product approval committee. It was absurd."
Companies have also objected to the requirement that they reveal their exact recipes, which is not standard practice in most markets, except when foods are using novel ingredients not previously confirmed to be safe for human consumption.
Read MoreIndia's fast-food industry is becoming a major market
"The extent of unilateral condemnation of a sector regulator by the people whom it is meant to regulate has been unprecedented," Mr Malik wrote in a May note to industry. "Accepting the presence of a regulator in a hitherto unregulated sector is difficult."
Yet the regulatory system is now itself in flux. This month, the Supreme Court, acting on a complaint by food supplement makers, scrapped the product approval process, ruling that the FSSAI lacked the authority to establish such a framework unilaterally. Instead, the court said the government had to issue regulations for proprietary foods.
In a statement on Wednesday, the FSSAI confirmed it was scrapping the product approval system, and promised to "expedite" new regulations and standards for many more foods and additives. But the process — which involves public comments — could yet take many months.
But that still leaves many food companies in limbo, uncertain whether they can legally introduce new products in the interim — or if foods whose applications were previously rejected can now be sold.
"These are teething problems," says Debashish Mukherjee, a partner at AT Kearney. "India is at a different stage of evolution to developed markets. Companies obviously don't like it, but this debate will lead to a more stable environment for the future."
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2153e8e3c6c043d8ba1b264e6de895a7 | https://www.cnbc.com/2015/08/27/jim-paulsen-overpriced-market-was-too-complacent.html | Jim Paulsen: Overpriced market was too complacent | Jim Paulsen: Overpriced market was too complacent
VIDEO1:1701:17Jim Paulsen: Here's why US markets broke...Squawk Box
VIDEO2:2502:25Data suggest market finding bottom: Tobias LevkovichSquawk Box
VIDEO2:1802:18Fragile markets hunt for a bottomSquawk Box
While many investors are pegging the global markets' recent plunge to wild swings in Chinese equities and the drop in oil prices, strategist Jim Paulsen said Thursday there's a more fundamental reason.
"I think the drop had more to do with the vulnerabilities of the market," Paulsen said in a CNBC "Squawk Box" interview. "We had market that was richly overpriced and investors getting too calm and complacent."
The chief investment strategist for Wells Capital Management said China was "the straw that broke the camel's back."
China's Shanghai composite closed more than 5 percent higher on Thursday, after sinking below its key 3,000 mark earlier this week. U.S. stock shot up in early trading Thursday, a day after the Dow Jones industrial average rallied more than 600 points for the first time since 2008, reversing multiple sessions of triple-digit losses.
Read MoreQ2 US GDP better than expected
The move has led many investors wondering whether or not the market has reached a bottom. Citi's chief U.S. strategist, Tobias Levkovich, said it has.
"When you look at what's going on in the market, it's suggesting we're finding this bottom," he told "Squawk Box."
"If you look at the 90-day implied volatility divided by the 30-day implied volatility, you are more than three standard deviations below average, going back to 2000.That has happened only 24 times in the last 15 years," he said. "This means that you have a contango in volatility, where people believe that the short-term volatility is too high, and what it really generates is a 96 percent probability of stocks rising in three months."
Barclays' strategist Hans Olsen said that while the market is forming a bottom, it will not be a smooth V-shaped bottom.
"Nothing's been truly resolved here," Olsen said on "Squawk Box." "It wouldn't surprise me to see a retest of the lows here."
Traders work on the floor of the New York Stock Exchange.Getty Images
"There's been a fair amount of damage being done here, and I'm not so sure that it would work out so neatly that the bottom would [form] a V-shape and we're off to the races again," said Olsen, global head of investment strategy at Barclays Wealth and Investment Management.
Olsen also said a Federal Reserve rate increase is coming "sooner rather than later" because recent economic data support it, making a choppier bottom likely.
"After almost a decade of zero interest rates, there's going to be some volatility," Olsen said.
Questions about whether or not the central bank will start normalizing monetary policy in September gained much more traction amid the recent volatility in global investment markets. Nevertheless, Kansas City Fed President Esther George said Thursday the central bank is still prepared for a rate hike in the near term.
Read MoreFed's George: Prepared for rate hike, despite selloff
"This week's events complicate the picture but I think it's too soon to say it fundamentally changes that picture, so in my own view, the normalization process needs to begin and the economy is performing in a way that I think it's prepared to take that," George said.
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bfd9e74775c741e141f791fc4fd168bc | https://www.cnbc.com/2015/08/27/lightning-round-time-for-lumber-liquidators.html | It's that time again! Jim Cramer rang the lightning round bell, which means he gave his take on caller favorite stocks at rapid speed:
Puma Biotechnology: "It got a very important upgrade today by JPMorgan and because of the jam up in all of these things that have been going on, I only got the read that they thought it was too cheap. I've got to do more work than just give you that."
Ross Stores: "I've got to say hold. Why? Because I did not like that last quarter versus TJX which had a much better quarter, or Ulta which reported tonight that I really like."
Mannkind Corp: "The proof is in the pudding. We haven't seen the big sales bump yet. If we see a big sales bump, then I think there is going to be time. But we haven't seen it yet."
Vornado Realty Trust: "I think those guys are very, very smart. I like them and I've got to tell you historically Steven Roth [CEO] is a guy you want to bank on. I think it's low and it's probably right. Let me also throw in Federal Realty and Ventas for three real estate investment trusts that I like."
Lumber Liquidators: "I understand the desire, and I understand they got that compliance officer and they can turn around, and housing is getting better. But you know, that one's too deep in the woods for me. I'm a Home Depot guy, and I know it might not go up as much as Lumber Liquidators but I want to sleep at night."
Read more from Mad Money with Jim Cramer
Cramer Remix: Bottom in oil could be close Cramer: This helped fuel 1-day monster rally Cramer: Housing stocks on a multi-year comeback
Yahoo: "I think you're in good shape. It's been an up and down stock, and obviously it trades with Alibaba. The good news is that it's kind of reflecting no value other than Alibaba, even if they can't do the tax spin right. So I think you're okay."
AMN Healthcare Services: "Healthcare staffing is terrific. And may I just say that Susan Salka [CEO] whom we have had on many times, is an unheralded terrific CEO who is really created tremendous value."
Questions for Cramer? Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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c366c3e530d4733a379ed8f75e5dcd92 | https://www.cnbc.com/2015/08/27/market-bottoms-in-place-strategist.html | Market bottom’s in place: Strategist | Market bottom’s in place: Strategist
VIDEO4:0804:08Belski's year-end S&P target: 2250Power Lunch
Investors should expect continued high volatility in the stock market, but recent rout was a bottom, strategist Brian Belski said Thursday.
In fact, he's keeping his year-end target for the at 2,250.
Drama and fear are what caused the dramatic decline, according to Belski.
"We believe that investors actually love this drama and fear. They've almost become too accustomed to it following 2008-2009, and we believe that fundamentals drive stocks longer term," the chief investment strategist with BMO Capital Markets said in an interview with CNBC's "Power Lunch."
He thinks investors have been too focused on the macro, like slowing growth in China, and not enough on the micro.
"They're using what's happening in China to make excuses to sell. I think the bottom's in place."
He believes the best way to fight volatility is to buy high quality, fundamental names in the U.S. He specifically likes financials, industrials and technology.
What he's not buying, however, is oil and energy, despite U.S. crude soaring more than 10 percent higher Thursday.
"A bounce is not a trend," said Belski.
Dow, Nasdaq close out of correction as stocks extend rebound
Rallies should be sold—here's how to profit: Trader
The problem is that energy companies have not employed strong structural changes such as the financial and technology sectors did after their bubbles, he noted.
"They have to dramatically decrease their cost structure. They have to look at what forecasts are; they drop those. They have to learn how to operate a company … within a trading range, whether or not that trading range is $20 to $30 or $30 to $40."
VIDEO1:5901:59I still think there's opportunity: YoshikamiPower Lunch
However, Michael Yoshikami, founder and CEO of Destination Wealth Management, thinks there are some select opportunities in energy names such as Chevron and Exxon.
While Chevron has fallen dramatically with the price of oil, he believes the dividend is safe because the company can sell assets to cover it if necessary.
"Most of the bottom is in the crude price. Could it go to $25, $30 as some are calling? It could. But if it does, Chevron will go down a bit, but you have a huge dividend," said Yoshikami, recently named among Barron's Top 100 Independent Financial Advisors for the seventh-consecutive year.
What's more, he doesn't expect oil to stay that low forever. He believes it will be $50 to $60 a barrel in the next two years.
"Everyone is going to say, 'Gee, I had this incredible opportunity to buy Chevron, but I was afraid.' Afraid of what? If you have a company that can sell assets and still pay dividends, I don't see what the downside is in this name," he said.
Disclaimer
Disclosure: Michael Yoshikami does not own Chevron or Exxon but may purchase them for clients.
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5983b84bfcbc454a8f874ac4505e8f17 | https://www.cnbc.com/2015/08/27/market-fears-trigger-a-new-main-street-reality.html | Market fears trigger a new Main Street reality | Market fears trigger a new Main Street reality
VIDEO2:1802:18Volatile markets trigger Main Street worriesHelp Wanted
Noni's Coffee Shop in New York's Bronx borough is far removed from Wall Street and deepening fears about China that have roiled global stock markets. But shop manager Ruth Tzanetatos has been watching and worrying about the recent stock market volatility.
The small business has weathered many economic ups and downs in its more than 40 years. Tzanetatos was hoping for a pickup in the fall after a slow summer. But now with uncertainty about whether a slowing China will trigger a broader slowdown, business owners like Tzanetatos are feeling less buoyant about the near-term future.
"It's been a very slow July and August. People go away for the summer, so we were hoping by September it would get a little better," Tzanetatos said. "No one is coming in for breakfast, lunch is not the same—after 1 o'clock we have to lock up, it's like a dead street."
Main Street can operate on its own trajectory. Volatile market swings rarely impact the day-to-day operations of mom-and-pop businesses. But historic stock market drops earlier in the week, followed by a more than 600-point rally into the close Wednesday, have some small businesses paying closer attention to the broader economy.
"If this [market volatility] continues, and the economy takes a hit, we won't be able to pay our rent, and it will look like we have to lock up the shop and go home," Tzanetatos said.
The market swings came as Main Street optimism was holding steady.
Read More Small companies seeing some signs of hope
The National Federation of Independent Business this month reported a gain of 1.3 points to 95.4 in its small business optimism index reading for July. This trend was mirrored in the Paychex/IHS Small Business Jobs Index for July, in which seven of the nine regions measured growth.
Ruth Tzanetatos manages Noni’s Coffee Shop in the Bronx section of New York.Source: Alex Bedoya
Main Street lending has also risen. The Thomson Reuters/ PayNet Small Business Lending Index hit its highest level since 2005 for June. The data was released earlier this month.
While market moves influence investors, market activity for now will have a short-term impact on consumer spending, says Bill Dunkelberg, chief economist for the NFIB.
"It will worry people if things continue to deteriorate," Dunkelberg said. "The key is that people keep spending, so small businesses will continue to watch this and there will be some hand wringing."
Tomohiro Ohsumi | Bloomberg | Getty Images
Entrepreneurs are more likely to feel the market swings in their 401(k) and IRA accounts. Many business owners self-fund their retirement plans.
"No one is being wiped out unless they put all of their money into those (retirement) plans," Dunkelberg said. "It's not the collapse we saw in 2008."
But some business owners like Tzanetatos—who took a massive hit to her 401(k) during the last downturn—are already feeling skeptical about near-term business prospects.
"I try to save here and there," said Tzanetatos, who has stopped trying to build up her retirement account. "No more."
Read MoreHow one US manufacturer is buffering against China
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e54e70a353b18ce4cab38e54bf2b2ee8 | https://www.cnbc.com/2015/08/27/mitsubishi-to-buy-at-least-10-percent-of-temasek-controlled-olam.html | Mitsubishi to buy at least 10% of Temasek-controlled Olam | Mitsubishi to buy at least 10% of Temasek-controlled Olam
VIDEO4:5604:56Why Mitsubishi took a stake in troubled Olam
Japanese trading house Mitsubishi will buy a stake of at least 10 percent in agri-trader Olam International in a deal worth $500 million or more, people familiar with the matter said.
Reuters earlier reported that the Singapore-based firm was set to announce a strategic partnership with a Japanese peer, after Olam, majority-controlled by state investor Temasek Holdings, halted trading of its stock on Thursday.
One of the sources said Mitsubishi had done extensive due diligence and had also looked at other strategic investments before choosing Olam. The people declined to be identified as discussions were private.
Olam, in which Temasek holds a 58 percent stake, will sell new shares to Mitsubishi as part of the transaction, in which Temasek's stake will be diluted. Olam's founding family will also cut its stake in the company, the source said.
In a stock exchange filing on Thursday, Olam requested a trading halt pending an announcement. A Mitsubishi official had no immediate comment and Temasek declined to comment.
Olam processes and sells foods such as nuts and spices, as well as raw materials such as cotton and rubber.
Pedestrians walk past the headquarters of Japanese automaker Mitsubishi Motors in Tokyo, Japan.Yoshikazu Tsuno | AFP | Getty Images
The people said Olam had held talks with Mitsubishi and Mitsui to form a joint venture and use the Japanese firms' global reach. The talks included one of the Japanese firms investing in Olam, they said.
Read MoreTemasek puts $1.7B Neptune Orient up for sale: Report
Mitsui declined to provide immediate comment.
Temasek raised its stake in Olam after the agri-trader's accounting practices were criticized by short-seller Muddy Waters in late 2012, sending Olam's share price sharply lower.
Olam, with a stock market value of $3 billion, has since sold stakes in more than a dozen operations, including in grains and dairy, to cut debt, boost cash flow and generate profits.
The people said an announcement on the partnership could come as early as Thursday.
Olam's shares were 13 percent higher before the halt, on track for their biggest single-day percentage gain in more than six years. The broader market rose 2.5 percent.
The deal also boosted shares of Noble Group, the Singapore-listed commodities trader that has also come under fire from Muddy Waters among others. Noble's shares, down more than 54 percent year-to-date, were up almost 5 percent at 0.54 cents each in afternoon trade.
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dd9c7c312a316451b33b207a7b08d67c | https://www.cnbc.com/2015/08/27/nasdaq-100-is-set-to-plunge-29-percent-technician.html | Nasdaq 100 is set to plunge 29%: Technician | Nasdaq 100 is set to plunge 29%: Technician
VIDEO1:4701:47Tech may hold the keyTrading Nation
Tech stocks had their best day since the financial crisis on Wednesday, leading markets on a major comeback. But according to one technician, these outperformers are about to see a severe pullback.
The S&P 500 information technology sector rose more than 5 percent Wednesday, the most one-day gains for the sector since March 2009. The Nasdaq 100 index ETF (QQQ), which has 25 percent of its holdings in Apple, Microsoft and Amazon, also rose more than 5 percent.
However, Todd Gordon of TradingAnalysis.com said the QQQ was about to break through a major support line in its uptrend.
"We're still very much in a consolidation that's lasted most of the week. I do think ultimately we resolve to the downside," Gordon said Wednesday on CNBC's "Power Lunch."
Gordon said he saw the Nasdaq 100 going to 3,000, which would be a 29 percent drop from its closing price Wednesday. This would represent a roughly 50 percent "retracement" of its long rally higher. That is, Gordon expects the Nasdaq 100 to ultimately give back half of its six-plus-years' gains.
"A 50 percent pullback is very common; it's very much to be expected in the course of a straight uptrend," Gordon said. "Markets just don't go up forever. That's just the reality we have to face."
Read MoreAmid economic concerns, tech stocks gain favor
Boris Schlossberg of BK Asset Management said he didn't think stocks had reached capitulation yet. But he said there were several reasons why tech stocks were excelling in the current environment.
According to Schlossberg, tech companies were aided in volatile circumstances by their rich cash flows.
"They're the least debt-ridden, they're least vulnerable," Schlossberg said Wednesday. "[They have the] lightest sort of operating margins of anybody else out there."
Schlossberg also said tech stocks were more likely than others to see a forceful comeback, since their performance is highly correlated to that of the market.
After a six-day selloff, the Dow Jones industrial average, and Nasdaq Composite all gained about 4 percent by Wednesday's closing bell.
CORRECTION: This headline of this has been updated to reflect that the Nasdaq 100 is set to plunge 29 percent, according to one technician.
Want to be a part of the Trading Nation? If you'd like to call in to our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com.
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9da45c9e0fe57437d7a1a669a863dcf7 | https://www.cnbc.com/2015/08/27/natixis-go-ahead-invest-but-dont-take-a-victory-lap-just-yet.html | Traders on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
Stocks rally for a second day, as the Dow Jones Industrial average rebounded more than 300 points Thursday.
With the huge recovery yesterday and today, companies have gained more than $1 trillion in market cap in essentially fewer than two trading sessions. Contrast that to the S&P 500 losses of $900 billion in market cap earlier in the week
Read More4 hedge fund managers offer advice on volatile market
David Lafferty, chief market strategist at Natixis Global Asset Management, which has nearly one trillion dollars in assets under management, told CNBC's "Power Lunch" Thursday while this is not time to take a victory lap, he is urging investors to get off the sidelines.
"By no means is today's action the start of a runaway bull market, but the fear has certainly come out of the market and that makes us relatively optimistic."
Lafferty's favorite sector pick is financials, with an emphasis on large cap global and U.S. banks.
"Valuation has really been pressured in this sector. The big money center banks have been trading at just over 10x earnings. In the long run maybe that ought to be 12 or 13, closer to a market multiple. So we think banks are pretty cheap."
If investors have the stomach for higher volatility levels, Lafferty suggests a move into the emerging markets.
Read MoreEmerging markets not all that bad
"We're starting to see a lot better values in the emerging markets. But we still have a real wild card with the Fed, in terms how quickly they're going to raise rates, and will that means to additional capital outflows across emerging markets. So if you want to bottom fish, emerging markets are starting to get interesting."
But remember to buckle up your portfolio before taking it out for a spin.
"The real open question is how long do you have to leave your money in emerging markets, and how much pain will you have to take before that improved valuation is realized in your portfolio," said Lafferty.
VIDEO3:0303:03Good value in banks & technology: ProPower Lunch
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b490783fda560d8e1388d3008e9b4f86 | https://www.cnbc.com/2015/08/27/nyse-suffers-cosmetic-problem-on-data-screens.html | NYSE suffers 'cosmetic problem' on data screens | NYSE suffers 'cosmetic problem' on data screens
VIDEO0:4100:41Displays not showing data at NYSEPower Lunch
A "cosmetic problem" affected data displays at the New York Stock Exchange on Thursday.
The issues did not seem to disrupt trading. Many screens, which typically show quotes and other information, displayed NYSE logos. Thomson Reuters, which provides the data for the displays, said it was affected by issues at a New Jersey data center, which "interrupted service to a small number of clients."
"We are communicating proactively with affected clients and the contractor to ensure services are resumed as quickly as possible," the statement said.
A chilled water pipe failed, affecting the cooling in a New Jersey facility owned by CenturyLink.
"Customers have been notified, and out of an abundance of caution, some CenturyLink clients have chosen to temporarily shut down non-mission critical equipment," CenturyLink said in a statement.
Read MoreThe little-used NYSE rule that can tame a wild market
An Investment Technology Group dark pool, which handles more than 300,000 stock trades per week, was taken offline because of the problem, Dow Jones reported.
—CNBC's Bob Pisani and Ryan Ruggiero contributed reporting.
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c63ad7eba27c5fc7c62986599ac32e14 | https://www.cnbc.com/2015/08/27/pboc-official-blames-fed-for-global-market-rout-not-yuan.html | China official blames Fed for global market rout, not yuan | China official blames Fed for global market rout, not yuan
Getty Images
Concerns over a possible U.S. rate rise by the Federal Reserve may have sparked a global stock market rout rather than the devaluation of China's yuan currency, a senior Chinese central bank official told Reuters on Thursday.
Yao Yudong, head of the bank's Research Institute of Finance and Banking, said the U.S. central bank should delay any rate hike to give fragile emerging market economies time to prepare.
He said Beijing's decision to let the yuan fall in value against the dollar should not make it a scapegoat for the sell-off.
VIDEO4:2904:29September Fed hike seems very unlikely: S&PSquawk Box Asia
"China's exchange rate reform had nothing to do with the global stock market volatility, it was mainly due to the upcoming U.S. Federal Reserve monetary policy move," Yao said.
"We were wronged."
Yao's comments, which came on the same day that state media issued a number of commentaries defending China's policy making, show Beijing's sensitivity to suggestions it may have fumbled economic policy. The ruling Communist Party has drawn much of its legitimacy in past decades from fostering economic growth and raising incomes, and wants to be seen as a responsible player in the global economy.
Many analysts, however, say a key factor roiling markets is concern that China's economy might be slowing sharply despite Beijing's efforts. That could have a significant impact on global growth, hitting company earnings and reducing demand for commodities.
Yao said China's economy remains on a sound footing, though some emerging market economies face a possible financial crisis in the years ahead stemming from liquidity stresses if the United States raises interest rates.
Read MoreFed's George: Prepared for rate hike, despite selloff
"So we hope the Federal Reserve could further delay its interest rate rise, giving emerging markets ample time to prepare. The Fed should not only consider the U.S. economy, but should also consider the global economy which is very fragile," he said in an exclusive interview.
The Fed, which has been prepping investors for a possible rate hike, declined to comment.
Fed policymakers acknowledge their actions can stir global markets, but argue they aren't stewards of the world's economy.
Market turmoil "is not a U.S. problem," New York Federal Reserve Bank President William Dudley said on Wednesday.
Dudley said the sell-off was sparked by "developments abroad," although Kansas City Fed chief Esther George said on Thursday the U.S. central bank helped set the stage by pumping trillions of dollars into the banking system in recent years.
Policy insiders have told Reuters that China has been so surprised by the global reaction to its yuan devaluation that it's likely to keep the currency on a tight leash in the near-term to head off any currency war that could spark a broader financial crisis.
Yao said the yuan is likely to see two-way moves in the near term and may resume its appreciation over time. "The (yuan) exchange rate will be basically stable with two-way volatility. We cannot rule out the possibility of yuan appreciation after 2-3 years."
Still on track for 7 percent growth
The surprise yuan devaluation of nearly 2 percent on Aug. 11 stoked global concerns about slowing growth in the world's second-biggest economy, coming just days after poor trade data.
But Yao shrugged off concerns about a possible 'hard landing' in China, saying growth was still underpinned by more resilient services and consumption. "China's economy is in good shape. I'm very confident full-year growth will reach 7 percent," he said.
Read MoreThe Fed hike could LOWER interest rates
Many economists fear China may miss its 7 percent annual growth target as recent data showed the economy, which officially grew at 7 percent in the first half, has lost steam.
A U.S. rate increase next month now seems less appropriate given the threat to the U.S. economy from the recent market turmoil, Dudley said on Wednesday.
China has plenty of policy room to cope with expected liquidity strains following any U.S. rate rise, Yao said, though he did not explain why he still urged the Fed to delay any move.
"China has sufficient policy room and adequate policy tools to respond," he said.
The People's Bank of China (PBOC) cut interest rates on Tuesday and lowered the amount of reserves that banks must hold for the second time in two months, ratcheting up support for a stumbling economy and a plunging stock market.
The yuan's inclusion in the International Monetary Fund's currency basket, known as Special Drawing Rights (SDR), will help ease a shortage of liquidity globally, but may not happen for another 20 years due to China's sustained current account surplus, Yao said.
"China's high savings rate means China cannot provide liquidity to the world via the current account right now," he said.
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c3e8834823596f9223f71a97bdc64142 | https://www.cnbc.com/2015/08/27/pernod-ricard-profit-rises-2-cautious-on-china.html | Pernod Ricard profit rises 2%, cautious on China | Pernod Ricard profit rises 2%, cautious on China
French spirits maker Pernod Ricard reported full-year 2014/15 underlying profit growth of 2 percent on Thursday, slightly below analysts' expectations.
A 404 million euro ($456 million) impairment charge on its Absolut vodka, which faces lower U.S. growth, weighed on net profit.
Shares of the spirits maker traded down around 4 percent on the results, with Pernod Ricard the only company on the French CAC 40 index trading in negative territory.
Bhofack2 | Getty Images
The world's second-biggest spirits group behind Britain's Diageo handed investors a 10 percent dividend hike and boasted cost cuts and improving cognac sales in China.
Pernod Ricard said that in a macroeconomic environment that was "challenging and volatile", it would continue to gradually improve its business performance in the current year that started on July 1, cautioning that Chinese sales were off to a "soft" start in a "tough environment".
The maker of Absolut, Martell cognac and Jameson whiskey faces slow growth in two key markets - China and the United States - and Chairman and Chief Executive Alexandre Ricard has made boosting sales a priority.
The rise in profit from recurring operations to 2.238 billion euros ($2.54 billion) for the year ended June 30 was in line with Pernod Ricard's guidance for underlying operating profit growth of 1 to 3 percent, while analysts had on average expected 2.5 percent growth.
Like rivals Diageo and Remy Cointreau, Pernod has been hit by a Chinese government crackdown on luxury gift-giving and personal spending by civil servants, as well as by slowing economic growth in its second-biggest market.
Pernod Ricard makes 12 percent of sales and 15 percent of profit in China, its largest market after the U.S.
The situation slightly improved in China, helped by a good Chinese New Year, with full-year sales down 2 percent like-for-like after declining 3 percent in the first nine months of the year and falling 23 percent in 2013/14.
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307b8b059601a7e4ebc985606b7305ce | https://www.cnbc.com/2015/08/27/philippines-gdp-grows-56-in-q2-but-china-concerns-temper-outlook.html | Philippines growth quickens in Q2 but China woes temper outlook | Philippines growth quickens in Q2 but China woes temper outlook
Cranes operate on a residential building under construction at dusk in Cebu, Philippines.Kuni Takahashi | Bloomberg | Getty Images
The Philippine economy rebounded with growth of 5.6 percent in the second quarter, defying a regional slowdown thanks to robust government spending, but faltering exports and deepening economic woes in China tempered the outlook.
While annual growth was the third-fastest in the region after China and Vietnam, and ahead of the 5.0 percent rate in the first quarter, the El Nino dry weather phenomenon posed a major downside risk for the Philippines, economic planning Secretary Arsenio Balisacan said.
A rebound in state infrastructure spending helped the economy grow 1.8 percent in April-June from the previous three months, slightly below the 2.0 percent forecast in a Reuters poll. Weak government spending has been blamed for declining growth in 2014 and in the first quarter of 2015.
VIDEO2:1202:12How the Philippines is coping with China risksSquawk Box Asia
Unlike many of its Asian peers, Southeast Asia's fifth-largest economy has remained resilient in the face of sputtering global demand, supported by strong domestic consumption, which continued to be underpinned by remittances and low inflation.
"As one of the countries with a respectable growth compared to other emerging Asian economies, the Philippines remains an attractive market and investment destination," Balisacan told a media briefing on Thursday.
But a worsening El Nino weather pattern, a slowdown in China and turmoil in its own markets and globally would likely make it more difficult for the government to meet its 7-8 percent growth target this year. Balisacan said the government was likely to cut the growth target, with a realistic goal around 6.0 to 6.5 percent.
Economists have penciled in 6 percent growth this year. Emilio Neri, economist at the Bank of the Philippine Islands, said: "Most critical is how the government delivers on its planned outlays."
Read More China growth panic is way overdone, experts warn
Following Thursday's GDP data, the Philippine central bank governor Amando Tetangco said there was no reason to change monetary policy given domestic demand remained solid.
The downturn in China, the Philippines' third-biggest export market, has hit many Asian economies reliant on shipments to the world's second-biggest economy.
Indonesia's economic growth in the second quarter, for instance, slowed to its weakest since 2009, and the economy of tiny, much more export-dependent Singapore contracted on an annualised basis.
But Philippine officials had said earlier Beijing's move to devalue the yuan may benefit global growth should it lead to higher Chinese exports in the near term.
"Considering you have all these global headwinds, you have election uncertainty and poor weather conditions, this (GDP number) is already an acceptable figure," said Bank of the Philippine Islands' Neri.
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b3a533c4e631e1d0f6b50f93ce6b4c45 | https://www.cnbc.com/2015/08/27/pop-up-dinner-offers-food-and-self-portraits.html | At a pop-up party, Champagne and selfies are on the menu | At a pop-up party, Champagne and selfies are on the menu
VIDEO0:3400:34Pop up dinner party draws thousands
It's a summer evening in Philadelphia, where 27-year-old Shavyra Chambers, sporting all white, is diving into a bowl of pasta placed on top of a white folding table. Seated on a large grass field with her boyfriend, the couple is part of a 4,500-strong group partaking of both food and pictures destined to land on Instagram, Twitter or Facebook.
It's all part of the Diner en Blanc experience, an organized secret pop-up picnic that began in 1988 and requires guests to wear white and bring supplies of the same color. Taking place once a year on varying dates in 60 cities, the specific location of the event is held secret up until the very last moment.
Participants who are able to score a ticket from the highly sought-after event must bring their own food, tables, chairs, dishes and tablecloth—with nearly everything in white. It's an unorthodox concept that is expected to draw 100,000 people globally this year, and by all indications it's one of the hottest tickets around. The organizers say more than 20,000 people compete for a place at the table.
Read More
So what's the objective of this fete, other than to create a critical mass of dinner selfies? To spark new relationships among total strangers, the event's organizer explained to CNBC.
"To make friendships, you need to share moments," Aymeric Pasquier, executive director of Diner en Blanc, told CNBC in a phone interview. "You don't just have them by having them on Facebook. You call them friends but they're not really friends."
Pasquier is the son of François Pasquier, who began the tradition 27 years ago in Paris with his friends. It's only grown to the United States in the past few years.
Rain doesn't stop selfies at Diner en Blanc.Joahnn Austin | Diner en Blanc
Michelle Homscher, a 33-year-old scientist, recently attended Philadelphia's dinner as a means of injecting a little mystery back into her daily routine.
"There's very few surprises in everyday life now," Homscher said. "The suspense leading up to it is wonderful. You see pictures on Facebook of people getting ready and posting tablescapes."
During the Philadelphia event, many guests held a phone in one hand to take and post photos throughout the evening on their social networks. For her part, Chambers posted at least five photos to Instagram during the night.
Read MoreResy can get you a table, but it will cost you
"I enjoy it because of the exclusivity of the event," she told CNBC. "A lot of people wanted to come but they couldn't, so I decided to share all my photos on Instagram. I just like to share my life."
Her photos ranged from different scenes of the night and some included her, "It's just me; I haven't posted a photo with anyone else," she said as her boyfriend interrupted her.
"She doesn't care about posting a photo with her boyfriend," he laughed.
The exclusivity of attending is certainly felt at the party. Chambers says she had been trying to get in for three years, but wasn't able to get a ticket until this year. While 4,500 guests attended the party in Philadelphia, there were more than 30,000 on the wait list.
It's so popular, it's not uncommon for other groups to organize alternative parties for those who couldn't get in. In Vancouver recently, with more than 30,000 on the Diner en Blanc wait list, two locals organized an event the same night asking guests to wear all black.
The Vancouver event was free, while tickets to Diner en Blanc start at $35, and depend on the city and membership.
Many Diner en Blanc guests, however, ultimately end up spending several hundred dollars once they factor in the cost of clothes, accessories and food. However, most say that after first-year initial upfront costs, it becomes more affordable.
Homsher, who has attended multiple years, said each year she becomes better at planning. "You learn after the second year. You buy yourself a cart for everything because it's heavy to carry yourself," Homscher said. "But it's money well spent."
Pasquier admitted that guests who only attend once will find the costs not worth the experience. They encourage attendees to reuse items year after year.
Pasquier said he has pondered banning cellphones from the event, but ultimately said people will do whatever they want.
"I share photos with family that can't attend to show them how beautiful the event is," Pasquier said. "You don't always do selfies, sometimes you really want to share the beauty of the moment."
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c1cbd8c7b910cded4ac6f3ac55b53082 | https://www.cnbc.com/2015/08/27/presidential-candidates-weigh-in-on-market-swings.html | Presidential candidates weigh in on market swings | Presidential candidates weigh in on market swings
VIDEO4:0004:00Now's the time for US to get back mojo: KudlowClosing Bell
As the market endured wild swings this week, various presidential candidates chimed in with their two cents' worth on the matter. However, two political veterans didn't think they had any brilliant insights.
On Thursday, New Jersey Gov. Chris Christie addressed the issue of China, whose slowing growth is seen as contributing to the recent correction.
"The reason we're so susceptible to changes in the Chinese economy is because the Chinese have lent us so much money and have so much of our debt. If China gets a cough, we get the flu because this president runs up more debt than any president in American history," the GOP presidential hopeful said on "Squawk Box."
Candidates such as Donald Trump, Scott Walker and Sen. Bernie Sanders also weighed in on the markets earlier this week on Twitter.
Trump tweet
Walker tweet
Sanders tweet
"None of them have really made a great contribution to this debate," former Rep. Barney Frank said in an interview with CNBC's "Closing Bell" Thursday.
"We should not overreact to the gyrations day to day in the market [and] ... we should not overact to what the candidates say about those things."
Christie: Obama has made inequality worse than ever
However, Frank, a CNBC contributor, took issue with Christie's point on China, calling it "nonsense."
"Our problem is if China slows down, as it has been slowing down and they buy less, that's problematic," he said. "They buy our debt … because the American debt is the safest in the world. That is a tribute the Chinese are paying to our stability as an economy."
CNBC senior contributor Larry Kudlow believes the slowdown in China presents a great opportunity that the candidates are not taking.
He thinks they should talk about slashing or abolishing the corporate rate, opening up all energy resources and education reform, all to maximize America's competitiveness.
"The USA can really get back its mojo relative to China if we have these kinds of competitive policies. That's what these guys ought to be talking about, plus a steady dollar," said Kudlow.
—CNBC's Crystal Lau contributed to this report.
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52d1a3c1092bb6b2df6f51e709add58d | https://www.cnbc.com/2015/08/27/protesters-ask-fed-to-delay-at-jackson-hole-summit.html | Protesters ask Fed to delay at Jackson Hole summit | Protesters ask Fed to delay at Jackson Hole summit
VIDEO4:5204:52The Fed conundrumPower Lunch
As the Federal Reserve's annual policy summit kicked off Thursday, protesters urged the central bank to delay an interest rate hike and focus on wage growth.
About 50 demonstrators gathered in Jackson Hole, Wyoming, holding signs reading "whose recovery is this" and "how many jobs do I have to work to be middle class?" Surrounded by the protesters, Nobel laureate economist Joseph Stiglitz also lent his voice, saying "this is not the time" to tighten policy.
"We are not algorithms in your computers. We are real people with real bills and real responsibilities," said Rod Adams, a protester who added that he makes $10.10 per hour.
Protest over interest rates at Jackson Hole, Wyoming, August 27, 2015.Elizabeth Schulze | CNBC
The Fed's plans to abandon its yearslong near-zero interest rate policy have taken a turn recently amid stock market volatility fueled by concerns about the Chinese economy. The U.S central bank in recent months said it saw a strengthening labor market, describing job gains as "solid" after its July policy meeting.
Read MoreSt. Louis Fed official: No evidence QE boosted economy
Two former top Fed officials told CNBC that the central bank needs to evaluate how best to boost conditions for workers. Based on the last few years, easy policy may not necessarily fuel wage and job gains, noted former Philadelphia Fed President Charles Plosser.
"It's very important that we look beyond what's happening now and are looking to the long run," he told CNBC from Jackson Hole on Thursday.
While the central bank takes worker concerns "very seriously," it needs to evaluate how best to boost employment and wages, said Randall Kroszner, a former Fed governor. He added that it cannot base its decision on the fundamentals of another economy.
"You can't have Fed policy responding to every bump and wiggle that are coming out of the markets," he told CNBC from Jackson Hole.
Read MoreFed's George: Prepared for rate hike, despite selloff
He added that a rate liftoff in September of December of this year could make sense without a "negative downward shock" to inflation.
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7244083509fb2dcc5c1e567ac2951c86 | https://www.cnbc.com/2015/08/27/put-your-money-in-the-banks-trader.html | Put your money in the banks: Trader | Put your money in the banks: Trader
VIDEO2:1802:18Financials in the spotlightTrading Nation
The financial stocks surged alongside the market as a whole on Thursday, with a 2.6 percent rise that saw every single stock in the sector finish in the green. And according to S&P Capital IQ equity chief investment officer Erin Gibbs, one subset of the financials—the bank stocks—is among the most attractive areas for investment now.
"They're looking a little oversold, and have very good growth [potential] into the next year," Gibbs said Thursday on CNBC's "Power Lunch."
Analysts are expecting the banks to report earnings growth of 15 percent in 2016, versus just 8 percent for the financials, according to S&P. Meanwhile, the average analyst target price for bank stocks implies 18 percent of upside.
Bank stocks are "really one of the sweet spots," Gibbs said.
But Societe Generale head of U.S. strategy Larry McDonald warns that financial risks emanating from Asia need to subside "before you can get comfortably long the U.S. financials."
Additionally, the chart gives him cause for pause. McDonald notes that the bank sector ETF (XLF) has fallen dramatically below its long uptrend line.
"We've broken down technically," McDonald declared.
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82dce2783abcde18980da9071f508f6e | https://www.cnbc.com/2015/08/27/rallies-should-be-sold-heres-how-to-profit-trader.html | Rallies should be sold—here's how to profit: Trader | Rallies should be sold—here's how to profit: Trader
VIDEO2:2502:25Rally should be sold--here's how to profit: TraderTrading Nation
The sharp and sudden rally on Wall Street has not only temporarily eased fears of a global meltdown, it has also decreased the price of protecting your portfolio.
The S&P 500 has rallied 6 percent from its low of 1,867, hit on Monday. That rally has caused the —the market's so-called fear gauge—to collapse. Since the VIX measure prices for options on the S&P 500, what the decline in the VIX has really done is allow investors an opportunity to buy protection on their portfolios at more reasonable prices. And that's welcome news for one trader who specializes in options.
Read More Seven reasons why the market has gone totally nuts
"I think the rallies are going to be sold," Andrew Keene said Wednesday on CNBC's "Trading Nation."
Despite the rally, Keene sees trouble in the charts, as by his work, the ETF that tracks the SPY is now "below its 20-day and 50-day moving averages" and are testing a "gap around $197." Said Keene, "I want to take advantage of the high volatility and play for a move lower."
Still, with options prices relatively high by a historical standard, Keene sees an opportunity to take advantage of swollen options prices and sell upside volatility. Specifically, Keene sold the September 197/198 call spread for a 35-cent credit. This is a mildly bearish strategy in which a trader will sell a call and then buy a higher strike call of the same expiration. The goal is for the stock, or in this case ETF, to fall below the strike that the trader is short by the expiration date.
Read More Nasdaq 100 is set to plunge 29%: Technician
"I'm not making a huge call for a 10 or 20 percent move to the downside," said the founder of Keene on the Market. "But I do think that if we continue to rally, we will get sold."
The SPY was trading 2 percent higher early Thursday, at around $198.
Want to be a part of the Trading Nation? If you'd like to call in to our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com.
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d0039f9d7457ff0306fb9e56698fc8d6 | https://www.cnbc.com/2015/08/27/rally-in-hand-traders-eye-data.html | Rally in hand, traders eye data | Rally in hand, traders eye data
VIDEO1:2701:27At the close: Stocks snap backClosing Bell
VIDEO1:3501:35Commodities tomorrow: Oil pops 10%Energy Commodities
VIDEO4:5204:52The Fed conundrumPower Lunch
As stocks attempt to hold the recent recovery from correction territory, the Street will get another look on Friday at some of the factors the Federal Reserve is eyeing in timing a rate hike.
The final read on August consumer confidence from the University of Michigan at 10 a.m. ET, takes particular prominence. In comments Wednesday, New York Fed President William Dudley singled out the index as an indicator of the volatile stock market's impact on the economy.
Dudley said the case for a September rate hike has become less compelling. Central bank policymakers continue their annual meeting in Jackson Hole, Wyoming, on Friday.
Trader on the floor of the New York Stock Exchange.Getty Images
"We feel Dudley's comments are broadly consistent with our view that the odds of a September liftoff have dipped below 50 percent, but are not zero," J.P. Morgan said in a note Wednesday.
The initial read on August confidence was 92.9, down slightly from July's 93.1 print.
The Fed's preferred gauge on inflation, personal income and outlays, is due at 8:30 a.m., ET.
Read More
Thursday's better-than-expected GDP report showed consumer spending increased at an upwardly revised 3.1 percent. The upward revision of overall second-quarter GDP to 3.7 percent and a decline in jobless claims add to recent data that indicates a strengthening U.S. economy.
"The GDP report today certainly affirms our view that the U.S. economy is strong. Given that we remain very committed to the equity market we have not changed our positions," said Cam Albright, head of investment strategy at Wilmington Trust Investment Advisors, which as $76 billion in assets under management.
The data and a recovery in oil prices helped U.S. equities extend their recovery for a second day, with the major averages closing up more than 2 percent and out of correction territory, on track for weekly gains.
The Dow and Nasdaq fell into correction last Friday, before the S&P ended there on Monday. Many analysts said the correction was not likely to become a bear market because solid data did not indicate an imminent recession.
However, investors expect more volatility in the coming weeks as markets seek a bottom amid continued uncertainty over the Fed and the global impact of slowing growth in China.
"I still think that we've probably got some questions that are going to come out of China. I'm very cautiously optimistic about what's coming out of U.S. markets," Albright said.
John Canally, investment strategist and economist at LPL Financial, said markets are "probably going to be cautious" on Friday going into the weekend ahead of possible moves by Chinese authorities that could negatively impact markets again.
Read More
Many analysts point to high levels on the VIX, widely considered the best gauge of fear in the market, as an indication that stocks may not be firmly in an upward track.
The VIX spiked above 50 on Monday and traded near 26, above the 20 level analysts would be more comfortable with.
In the last two days of the rebound, buying accelerated into the close, while selling picked up into the close on Tuesday.
"I think the bounce continues but probably not at the pace we've seen in the last few days," Canally said. "This initial bounce is going to be driven by the things that hurt the most: energy, technology."
LPL Financial is selectively adding to their positions in those sectors as stocks bounce, he said.
The energy sector surged nearly 5 percent to lead S&P 500 gains Thursday, boosted by a more than 10 percent surge in crude oil for its best one-day gain since March 2009. Analysts attributed the move mostly to short covering.
"I see the markets tomorrow (Friday) trending slightly sideways or possibly negative, and we'll be looking at 2,000 in the S&P as a ceiling that if broken through we could see a little more uptick in the markets," said Michael Wall, president of Retire Well.
"Something we are watching and looking to purchase into probably the beginning of next week is oil and certain MLPs that offer nice yields," Wall said. "We want to prepare for the fall season, colder weather, an increase in demand, which I believe will yield some growth in that area."
Read MoreWhat Texas drillers are saying about $40 crude
S&P 500 announced after the close that Activision Blizzard will join the index, replacing Pall (which is being acquired by Danaher) after the close of trading on Friday. United Continental will replace Hospira (which is being acquired by Pfizer) in the index after the close on Sept. 2.
Earnings due before the open Friday include Big Lots and the Bank of Nova Scotia.
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3c6c13e87180dc3ae3c3c748bc6ebb8d | https://www.cnbc.com/2015/08/27/rout-latest-shanghai-hovers-at-critical-3000-level.html | Markets latest: US averages pop; Europe, China soar | Markets latest: US averages pop; Europe, China soar
Our live blog has the latest news and analysis from global markets, as a stellar rally on Wall Street helped investor sentiment to rebound.
China's Shanghai Composite index fluctuated around the critical 3,000 mark on Thursday but closed higher by 5.3 percent—rising for the first time in six sessions.
European bourses, meanwhile, went sharply higher with the German DAX posting gains of over 3 percent. The U.S. markets, meanwhile, popped at their open, with the Dow adding about 200 points.
(App users please click here).
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40cfb0575a22192e3478800821deb0e7 | https://www.cnbc.com/2015/08/27/stephen-curry-joins-sports-start-up-coaches-on-demand.html | Stephen Curry joins sports start-up: Coaches on demand | Stephen Curry joins sports start-up: Coaches on demand
Stephen Curry and Jordan FliegelSource: CoachUp
The NBA's 2015 Most Valuable Player, Stephen Curry, is hoping to score off the court with an new sports start-up: The guard for the Golden State Warriors has taken an equity stake in a private coaching company called CoachUp.
The idea? Think Uber for coaching. The company seeks to match aspiring athletes with top-level coaches through its online and mobile platforms.
Curry says joining the company was a natural fit. "It's part of my story and how I developed my game," he said. "I wouldn't be where I was today without receiving private coaching," he added.
The two-time NBA All-Star says that when he was in his teens, he received private coaching and it transformed his game. "I still keep in touch with my former coach," he said.
CoachUp was founded by Jordan Fliegel in 2011. He started the company with the hope of helping others achieve their athletic dreams. Fliegel said that private coaching changed his life and he wants to give that opportunity to other kids.
"Sports provide a great vehicle for confidence and character," he said.
VIDEO3:0403:04Have sports salaries peaked?
Today, CoachUp has more than 15,000 coaches whom it has matched up with more than 100,000 athletes across the country participating in every sport from soccer, basketball and golf to dance and fitness.
And these aren't just any coaches. More than 500 of the coaches on CoachUp are professional athletes from the NBA, WNBA, MLS and NFL. Big names include Nate "Tiny" Archibald and 1977 Rookie of the Year Adrian Dantley. Fliegel also has current players that are coaching from nearly every Major League Soccer team.
Each coach sets his or her own price but most coaching sessions cost from $40 to $100 per hour. Coaches are vetted with background checks and are insured.
The company has raised $9.35 million in funding to date, but Fliegel says they are just getting started.
Former NFL player cashes in on nonbank lending
DraftKings CEO looks to the future of fantasy sports
"There's a massive opportunity here," he says. "We just need to continue to get the word out," he added.
Curry says that in addition to his equity stake, he's actively involved in the overall direction of the company. (He declined to say how big a stake he'd taken.) While he's not offering his own coaching services yet, he doesn't dismiss the idea that he may someday.
"There might be some special package one day," he says.
Aside from new business opportunities, Curry says his recent NBA Finals win has opened a lot of new doors. He recently played 18 holes in Martha's Vineyard with President Barack Obama.
"I told the president he could use some coaching on the links," he said.
CORRECTION: Stephen Curry won the MVP for the regular season in 2015. That fact was misstated in an earlier version of this article.
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5bbc128150e1686d04b235028f0ebc0e | https://www.cnbc.com/2015/07/23/amazon-earnings-19-cents-per-share-vs-expected-loss-of-14-cents-a-share.html?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated | Amazon sales rise 20%, easily top most optimistic estimates | Amazon sales rise 20%, easily top most optimistic estimates
VIDEO1:0301:03Amazon shows profit growth!Closing Bell
VIDEO3:0803:08Amazon could be $600 stock: ProClosing Bell
VIDEO1:2701:27Amazon the business you want: ProClosing Bell
Amazon shares spiked Thursday after the online retailer blew past quarterly earnings and revenue estimates, boosted by growth in the North American market and cloud computing segment.
The company posted second-quarter profit of 19 cents per share on $23.18 billion in revenue. Its sales rose 20 percent from the year-earlier period and were more than $300 million better than the highest of 36 estimates from analysts polled by Thomson Reuters.
Wall Street expected Amazon.com to report a quarterly loss of 14 cents a share on $22.39 billion in revenue, according to consensus estimates from Thomson Reuters. The shares were up as much as 18 percent in extended trading after the results and were tracking well above their all-time high of about $493.
Amazon's operating margin—a metric analysts and investors eyed coming into the report—was 2 percent, compared with 1.1 percent in the first quarter. Operating expenses climbed 17 percent from a year earlier to $22.11 billion.
Read MoreAmazon's CEO Jeff Bezos just made $7B
"The spend that they made from 2010 until now has really started to pay off in a way that's meaningful," said David Seaburg, head of sales trading at Cowen and Company, in a CNBC "Closing Bell" interview.
Jeff BezosT. J. Kirkpatrick | Bloomberg | Getty Images
Sales for Amazon Web Services, the company's cloud computing business, rose to $1.82 billion, up 81 percent from a year earlier. Its operating income in the segment rose to $391 million, more than quadrupling from $77 million.
"This is the one that's exploding," said Lance Ulanoff, editor at large at Mashable, about Web Services in a "Closing Bell" interview.
Read MoreAmazon refunds users for eBook antitrust settlement
Still, the key business accounted for only about 8 percent of Amazon's revenue in the quarter. On the company's conference call, CFO Brian Olsavsky said AWS is now in 11 regions and will soon come to India, where the company has ramped up its investment.
Revenue in North America, Amazon's largest segment, rose 26 percent year over year to $13.79 billion. However, the company's international sales grew only 3 percent.
Amazon said it expected net sales of $23.5 billion to $25.5 billion in the third quarter. It projects between a $480 million loss and a $70 million income.
On July 15, the company held its first "Amazon Prime Day" in which it attempted to recreate a Black Friday savings experience in the summer months. Amazon's third-party U.S. same-store sales for that day were about 80 percent ahead of where they were a year earlier by noon, according to e-commerce sales tracker ChannelAdvisor.
Olsavsky said Amazon was "thrilled" by Prime Day.
Read MoreJet v. Amazon: Here is the price war winner so far
Shares of Amazon have climbed about 34 percent over the past 12 months. At its price in the after-hours session Thursday, Amazon's market capitalization was higher than Wal-Mart.
—CNBC's Matthew Belvedere, Karma Allen and Zack Guzman contributed to this report.
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7b5e3c2f1185ff5f56b8c0e99e7a54b3 | https://www.cnbc.com/2015/07/23/hamptons-real-estate-sales-slowing-down.html?__source=realestate%7Cnews%7C&par=realestate | Hamptons real estate sales slowing down | Hamptons real estate sales slowing down
After a record breaking number of home sales in the Hamptons in 2014, things are beginning to cool down in the luxury real estate destination.
Both sales and median prices of Hamptons real estate are down in 2015 from where they were last year, according to a report by Douglas Elliman Real Estate.
Jerritt Clark | Getty Images
The median sales price for a home in the Hamptons declined 6.5 percent to $849,000 compared to 2014, according to the report. The number of homes that were sold fell 15.7 percent to 590 this year, down from 700 sales at this time last year. However, average home price rose 2.5 percent year over year.
Read More Million-dollar Hamptons rentals remain unrented
The conflicting data are a result of a reaction in the market from last year's sales, said Jonathan Miller, president of Miller Samuel Real Estate Appraisers, who authored the report.
Last year saw an explosion of pent-up demand as people began to consider real estate again for the first time since the housing crisis, Miller said. That demand resulted in 700 sales, a record number.
"That demand has mostly been absorbed, so what we have now is the prices showing mixed trends, but sales are down," he said. "There isn't the same sense of urgency by buyers that there was a year ago, but there is still above-average activity occurring. It's just not at the breakneck pace it was last year."
The current market in the Hamptons is just returning to normal, the CEO of Douglas Elliman, Dottie Herman, said. While sales aren't record breaking, they are still healthy.
She also noted that in a small market like the Hamptons, big outliers can move data.
For the fabulously wealthy, a Hamptons property is soon to hit the market at $95 million, according to real estate agents at Sotheby's. The estate, known as Burnt Point, is an 18,000-square-foot shingle traditional built on 25 acres with water on three sides. The home is being sold by the Stewart J. Rahr Foundation, and the proceeds will continue to fund the foundation's philanthropic efforts.
Read MoreThe time to invest in a second home is now
In the quarter-over-quarter data, values saw a decline from the beginning of the year, although Miller said that because the Hamptons are generally a second-home market, and highly affected by seasonal variations, quarter-over-quarter data does not paint the full picture.
The average price tag for a home in the Hamptons dropped 10.4 percent from the first quarter of 2015, down to just under $1.6 million. Luxury homes, calculated as the top 10 percent of sales, saw an even larger dip. The average sales price fell 14.2 percent, from about $7.9 million in the first quarter, to $6.8 million in the second.
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e308eff2ec094a9089858923df6d9d5d | https://www.cnbc.com/2015/07/24/early-movers-ci-amzn-save-biib-mco-t-more.html | Early movers: CI, AMZN, SAVE, BIIB, MCO, T & more | Early movers: CI, AMZN, SAVE, BIIB, MCO, T & more
Getty Images
Check out which companies are making headlines before the bell:
Cigna—Health insurer Anthem will buy Cigna for $188 per share in cash and stock, with the deal carrying a $54.2 billion enterprise value. The combined company will serve about 53 million customers.
Amazon.com—Amazon stunned investors by posting a profit. Amazon earned 19 cents per share for its latest quarter, in contrast to the 14 cents per share loss that analysts were expecting. The online retail giant also gave upbeat guidance for the current quarter.
Spirit Airlines—The airline posted adjusted quarterly profit of $1.05 per share, 4 cents above estimates, though revenue was slightly below forecasts. Spirit flew more flights and routes than it had a year earlier, although the company did note that it dealt with significantly more bad weather during the quarter.
Biogen Idec—The drug maker's adjusted quarterly profit of $4.22 per share beat forecasts by 12 cents, but revenue came in below forecasts. The company also lowered full year guidance because of slower than expected growth for its multiple sclerosis pill Tecfidera.
Moody's—The rating agency beat estimates by 6 cents with quarterly profit of $1.28 per share, and revenue also scored a solid beat. Moody's upbeat quarter came despite less than favorable growth conditions and foreign currency volatility.
VF Corp.—The maker of North Face, Wrangler, and other apparel brands reported quarterly profit of 40 cents per share, 4 cents above estimates, with revenue also beating forecasts. VF also raised its outlook for the full year, even with profit margins having fallen 10 basis points during the quarter from a year earlier.
American Airlines Group—The airline reported adjusted quarterly profit of $2.62 per share, 2 cents above estimates, with revenue very slightly below Street consensus. The company also announced the authorization of an addition $2 billion in share buybacks.
AT&T—AT&T reported adjusted quarterly profit of 69 cents per share, 6 cents above estimates, with revenue essentially in line as its wireless service added more customers.
Pandora—Pandora beat estimates by 3 cents with adjusted quarterly profit of 5 cents per share, and the online radio service's revenue was also above estimates on a jump in both subscribers and advertising revenue. Pandora also raised its full-year forecast.
Visa—Visa earned an adjusted 74 cents per share for its latest quarter, 15 cents above estimates. The credit card issuer's revenue also surpassed analyst forecasts, and Visa said it was in talks to rejoin former subsidiary Visa Europe.
Starbucks—Starbucks saw its latest adjusted earnings per share come in 1 cent above estimates at 42 cents, with revenue in line. The coffee chain was helped by new drinks and increased food sales. Starbucks also announced an increase of 50 million shares in its stock buyback program.
Juniper Networks—Juniper scored a 13 cent beat with adjusted quarterly profit of 53 cents per share, and revenue was also above Street forecasts. The networking equipment maker also gave strong earnings and revenue guidance for the current quarter.
TripAdvisor—TripAdvisor missed estimates by 1 cent with adjusted quarterly profit of 54 cents per share, and it missed on the top line as well. The travel website operator did see a 25 percent increase in sales, but that was weaker growth than the Street had been forecasting.
TrueCar—TrueCar said its second quarter loss may widen to as much as $15.5 million, and the online auto shopping site also cut its full year forecast. Fewer customers have been visiting the site to make car purchases.
GlaxoSmithKline—The drug maker got approval from European regulators for the first ever malaria vaccine.
DirecTV—The satellite TV provider and AT&T will get FCC approval today for their planned merger, according to Reuters. That comes after the Justice Department decided to let the deal proceed without objections.
Comcast—The NBCUniversal parent has held preliminary talks with a number of online publishers about possible acquisitions, according to The Wall Street Journal, which says the talks included Vice Media, BuzzFeed, and Business Insider. (Disclosure: Comcast is parent of NBCUniversal and CNBC.)
Questions? Comments? Email us at marketinsider@cnbc.com
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4329aa7e7fcf6c702b8b0eedfb088abe | https://www.cnbc.com/2015/07/24/us-markets.html | Stocks plunge more than 2% for week on earnings, global growth concerns | Stocks plunge more than 2% for week on earnings, global growth concerns
VIDEO2:3202:32Positive signs for the housing market: ProHalftime Report
VIDEO2:4202:42China PMI hits commodity stocksHalftime Report
VIDEO3:2603:26Pisani's market open: Amazon soars
U.S. stocks closed about 1 percent lower on Friday, despite surprisingly strong Amazon earnings, as signs of slower global growth weighed on sentiment. (Tweet This)
The major averages closed down more than 2 percent for the week, with the S&P 500 and Nasdaq posting their worst since March. The Dow Jones industrial average had its worst week since January, off nearly 2.9 percent for the week.
"I think the market's very much concerned about the commodity (decline)," said John Lonski, chief economist at Moody's. "The contraction in China manufacturing activity is gaining momentum and the credit market has yet to signal that rates are not about to go higher."
He also noted a surprising decline in new home sales and continued lack of revenue growth in earnings. Nearly all the commodities are in a bear market and gold and crude settled at lows Friday.
"You've got some major growth concerns and that is what's weighing on investors minds," said Peter Boockvar, chief market strategist at The Lindsey Group. He noted that earnings and data have mostly indicated softer growth, outside of encouraging reports from Google, Netflix and Amazon.
The major averages extended losses after breaking through support levels of about 2,088 on the S&P 500 and 17,600 on the Dow, according to Art Cashin, director of floor operations at UBS.
The S&P 500 ended below its 50-day moving average.
The Dow closed about 160 points lower to below its 200-day moving average as Goldman Sachs declined and Chevron and Exxon Mobil hit multi-year lows with the continued decline in oil. DuPont closed 2.6 percent lower as materials had their worst week since December.
Read MoreThe Dow just broke a pretty dubious record
The blue-chip index is down about 1.4 percent for the year.
"You're seeing a reallocation in assets, moving away form some of the losers," said JJ Kinahan, chief strategist at TD Ameritrade. "I think people are taking off risk for the weekend."
The Nasdaq Composite closed 1.12 percent lower. A disappointing Biogen earnings report pressured the iShares Nasdaq biotechnology ETF (IBB) down 4 percent to weigh on the index, while Apple edged lower to close nearly 4 percent lower for the week, while Google dropped nearly 3 percent for a 6.4 percent weekly decline.
"I think the overarching driver for change may be the macro, not the micro," said Art Hogan, chief market strategist at Wunderlich Securities.
"It's been a week characterized by lackluster earnings with a few bright spots here and there," he said. "Away from that you've got this overarching concern that the global economy is slowing down."
In China, the Caixin Markit flash general manufacturing PMI for July came in at 48.2, a 15-month low. The July euro zone flash PMI was 52.2, a two-month low.
Read MoreDo your investments operate in China? Check this out
The weak data and continued commodity selloff sent Asian and European stocks lower.
Copper and the Thomson Reuters CoreCommodity CRB index fell to 6-year lows.
Gold hit a fresh five-year low before reversing in the late afternoon to trade higher near $1,097 an ounce. Gold futures ended down $8.60 at $1,085.50 an ounce, posting five consecutive weeks of losses for the first time since October.
The gold miners index (GDX) briefly fell more than 2.5 percent to an all-time low, posting its worst week since the beginning of March.
Crude gave back initial gains to trade about half a percent lower. Crude oil futures for September delivery settled at the lowest level since March 31, down 31 cents, or 0.64 percent, at $48.14 a barrel on the New York Mercantile Exchange.
"Obviously a little nervousness coming out of Asia last night. This last week the focus is all earnings," said Peter Coleman, head trader at Convergex. "In the tech sector it's been mixed. Earnings in general have been a bit better than expected. You had some big Dow names (miss)."
Adding to the decline in the major averages, Southwest Airlines plunged 4 percent on the day to lead declines in the Dow transports, which ended 0.67 percent lower. The index failed to recover from correction territory, down about 2.7 percent for the week.
Read More Five US airlines face price-gouging allegations
"You've got a situation here where the market is forecasting weaker economic growth, not stronger," said Adam Sarhan, CEO of Sarhan Capital. "That directly contradicts the Fed's narrative."
The Federal Open Market Committee holds its July meeting next week but no press conference is scheduled.
The U.S. flash manufacturing PMI for July edged up to 53.8, from a 20-month low hit in June.
showed a decline of 6.8 percent to a seven-month low in June. On Wednesday, hit a near 8-1/2-year high.
"The new home sales number are often a very volatile figure and we've seen a strong uptrend over the last couple of months," said Brad Friedlander, co-founder of Angel Oak Capital Advisors, which as $5 billion in assets under management. He pointed out that the figure is still up about 20 percent from the same month last year.
However, the PHLX Housing Sector Index fell 0.93 percent.
The dollar trimmed gains, with the euro at $1.098 and the yen at 123.7 yen against the greenback.
Treasury yields held lower, with the 10-year yield at 2.26 percent and the 2-year at 0.67 percent. The yield curve steepened slightly after the Fed issued a statement Friday on the inadvertent release on June 29 of staff economic forecasts that were more dovish than some expected.
Among the firms posting results before the open, Biogen Idec beat on earnings but missed on revenue, as well as lowered full-year guidance.
American Airlines fell about 7 percent despite posting earnings that topped expectations on revenue a touch below forecasts. The airline also announced the authorization of an addition $2 billion in share buybacks.
VF Corp. closed mildly lower, down 0.2 percent. The maker of North Face, Wrangler, and other apparel brands, posted earnings that beat on both the top and bottom lines. The firm also raised its full-year outlook.
Read MoreEarly movers: CI, AMZN, SAVE, BIIB, MCO, T & more
Shares of Regeneron closed down about 2.6 percent on news the the firm's new cholesterol drug but limited its use. The stock was halted for much of the day and reopened more than 3 percent lower in late afternoon trade.
In corporate deals, Anthem said on Friday it would buy Cigna in a deal valued at $54.2 billion, by membership. Both stocks fell on Friday, with Anthem off 2.8 percent and Cigna down 5.6 percent.
Amazon closed 9.8 percent higher after soaring more than 17 percent in the open to a record after reporting unexpected quarterly profit after the close Thursday. The e-commerce firm's market cap now surpasses that of Wal-Mart.
Starbucks and Visa also traded at all-time highs after beating on both the top and bottom line. The coffee giant posted a 1.29 percent gain for the day, while Visa jumped 4.25 percent.
However, Capital One Financial plunged 13 percent after its quarterly earnings missed expectations, with profit of $1.78 a share on $5.67 billion in revenue, flat year-over-year.
Mostly lackluster earnings on Thursday pushed U.S. stocks lower. The only positive trading session this week was Monday, when the major averages closed just a touch higher.
"One of the things I'm looking for in (the) early part of next week is for the market to recover from the downtrend," said Michael Wall, president of Wall Financial Group. If stocks bounce, he said they could break out of the recent sideways trend.
The Dow Jones Industrial Average closed down 163.39 points, or 0.92 percent, at 17,568.63, with DuPont leading 28 blue chips lower and Visa, Cisco and Walt Disney the only advancers. Visa was the best performer for the week, up 5.5 percent, while United Technologies was the worst, down 10.3 percent.
The closed down 22.50 points, or 1.07 percent, at 2,079.65, with health care leading nine sectors lower and utilities the only advancer, by only 0.03 percent. All the sectors ended lower for the week, with materials plunging nearly 5.5 percent as the worst performer for the 5-day period.
The Nasdaq closed down 57.78 points, or 1.12 percent, at 5,088.63.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 14 after briefly climbed above 14.5 for a 15 percent spike.
About three stocks declined for every advancer on the New York Stock Exchange, with an exchange volume of 892 million and a composite volume of about 3.8 billion in the close.
High-frequency trading accounted for 49 percent of July-to-date's daily trading volume of about 6.6 billion shares, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.
—CNBC's Peter Schacknow contributed to this report.
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dd8ae5cdde6f2c174161fde780438282 | https://www.cnbc.com/2015/07/24/whats-worrying-traders-about-third-quarter-earnings.html | Trader Talk | Trader Talk
VIDEO2:0902:09Focus on next week's earnings: PisaniClosing Bell
The focus will again be on earnings next week, but, as always, a small number of companies will be in focus.
There's a lot riding on Facebook, which reports Wednesday, because the stock is up 20 percent in the last month on expectations of a strong report. Investors have piled a lot of money into a small group of big-cap tech names. Good news dramatically boosted Amazon and Google, but even the smallest disappointment hurt Apple.
Traders will also be scrutinizing big international companies for the impact of the strong dollar. Procter & Gamble, for example, gets 65 percent of its business outside the U.S. They'll be reporting Thursday. Other multinationals that have already reported have noted significant impact from the strong dollar.
The two biggest energy companies, Dow components ExxonMobil and Chevron, will report at the end of the week, and we all know it's going to be a disaster. Chevron's earnings will probably be down 55 percent. Still, estimates have been coming up a bit recently for themm and they will be scrutinzed for any indication of when the oil slide may stop.
And remember, it's not so much the earnings, it's the guidance for the third quarter that matters. Earnings growth was expected to be positive in the second half of the year, but the expectations for the third quarter are now also expected to be down 2.4 percent, according to Factset. With 40 percent of the S&P reporting, that number should be stronger.
And revenues are even worse, expected to be down 2.8 percent for the third quarter. That's one reason the markets have had so much trouble this week.
What's the problem? Slow growth in China and Latin America is one issue, but also the dollar strength and weak oil has continued into the third quarter. The Fed told us that a strong dollar and weak oil might be transitory, but that hasn't been the case.
Bottom line: growth is proving to be very elusive this year, particularly overseas.
Aside from earnings, watch the market leaders next week. A lot of money is in a small group of banks and biotechs. Banks are holding up, but today is one of the worst days we have seen in a long time in biotechs on the Biogen disappointment. The NASDAQ Biotech ETF is down 4.2 percent today.
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c1856d1ecc2b99a31d0efea08bb91280 | https://www.cnbc.com/2015/07/24/wwe-splits-with-hulk-hogan-amid-reported-comments.html | WWE splits with Hulk Hogan amid reported comments | WWE splits with Hulk Hogan amid reported comments
VIDEO0:3500:35WWE cuts ties w/ Hulk HoganEntertainment
World Wrestling Entertainment has split with its decades-long icon Hulk Hogan amid a brewing controversy over alleged statements by the wrestler (Tweet this).
"WWE terminated its contract with Terry Bollea (aka Hulk Hogan). WWE is committed to embracing and celebrating individuals from all backgrounds as demonstrated by the diversity of our employees, performers and fans worldwide," the company said in a statement Friday.
The Daily Beast and others reported that WWE had scrubbed Hogan from its website and hall of fame page, and that his merchandise was no longer for sale in the online store.
The website reported that WWE acted following the emergence of alleged racially tinged comments by the wrestler.
VIDEO1:4801:48Seven things you didn't know about WWE
Read MoreHulk Hogan Wants to Block Media From Viewing His Sex Tape During Gawker Trial
In a statement, Hogan apologized for the language he used, and said he is resigning from commitments to the WWE.
"Eight years ago I used offensive language during a conversation. It was unacceptable for me to have used that offensive language; there is no excuse for it; and I apologize for having done it," he said. "I believe very strongly that every person in the world is important and should not be treated differently based on race, gender, orientation, religious beliefs or otherwise. I am disappointed with myself that I used language that is offensive and inconsistent with my own beliefs. It is not who I am. I continue to work every day to improve as a person, and this matter is an important learning experience for me in that regard. As a result I am resigning from my contractual relationship with the WWE."
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55b85f20c0c59036ca38f613c7f07d1f | https://www.cnbc.com/2015/07/27/8-young-entrepreneurs-making-serious.html | Iconic Tour | Iconic Tour
Brandon and Sebastian Martinez of Are You Kidding?Source: Are You Kidding?
What do billionaires Jeff Bezos, Mark Cuban and Richard Branson have in common?
They each started their first business before graduating high school.
Stories of 20-somethings launching start-ups from their dorm rooms seem to pop up everywhere, but it seems entrepreneurs are getting even younger.
While they aren't billionaires yet, these eight entrepreneurs under 18 years old are making a name for themselves—and some serious cash.
—By CNBC's Sarah WhittenPosted 27 July 2015
Sebastian Martinez, CEO, Are You Kidding?Source: Are You Kidding?
He's only 7, but he's already CEO of his own company and a philanthropist.
Sebastian Martinez's passion for collecting bright and zany socks turned into a business when his mother suggested he design his own. The result was a company called Are You Kidding which Sebastian started at age 5.
In 2014, Sebastian made $15,000 selling his specialty socks with the help of his director of sales and big brother Brandon Martinez.
Since January revenue has continued to grow. "We have been able to already reach the $15,000 that we made last year and are on track to double and hopefully triple our sales this year," Rachel Martinez, the president of the company and Sebastian's mother, told CNBC.
Are You Kidding teamed up with organizations like the American Cancer Society and the Live Like Bella Foundation last year to raise more than $3,000 for cancer awareness. In April, the company partnered with The Hue Studio and donated 25 percent of all proceeds from its "Eye See You" sock sales to Discovery Arts, a charitable organization that brings art programs to children with serious illnesses.
Source: YouTube
What is it like to be a millionaire before you even hit puberty? Just ask 9-year-old Evan from EvanTubeHD.
The face of the highly successful YouTube channel, Evan has been reviewing toys and building Lego sets online since he was 5, and it's a staggeringly big business.
This pint-sized entrepreneur has three channels on the video platform and more than 2.8 million subscribers. He has amassed more than 1.9 billion views on the platform and is estimated to make $1.3 million a year.
"We've already maxed out certain accounts, so I think the college education is pretty much taken care of thank goodness," Jared, Evan's father, told NBC News in December. The father has not disclosed their family name.
Alina Morse, CEO, ZollipopsMichael Bezjian | WireImage | Getty Images
Nine-year-old entrepreneur Alina Morse had a pretty sweet idea in 2014: create a sugar-free lollipop that tastes good and is good for you.
With a little help from her father and a lot of research, Zollipops was born.
These clean teeth pops are made with sweeteners xylitol, erythritol, stevia and other natural ingredients and help to neutralize acidity in the mouth, so the bacteria that causes tooth decay cannot grow.
Last year, Alina racked up $70,000 in sales and was featured on the kids' edition of "Shark Tank." She's now working to get Zollipops into dentist offices and schools across America.
Moziah BridgesCNBC
At 13, Moziah Bridges is well on his way to becoming a fashion mogul.
This dapper CEO launched his bow-tie business, Mo's Bows at age 9 and catapulted into the spotlight after becoming the youngest entrepreneur to appear on "Shark Tank."
His company made $350,000 in sales since 2011 and is expected to earn $250,000 in revenue for 2015, mother-manager Tramica Bridges told CNBC via email.
Bridge's collection is sold in shops and boutiques in six states and in his online store.
Source: Zach's Web Designs
Web designer and entrepreneur Zachary Weisenthal may only be 14, but he's already the driving force behind two companies.
The young CEO was inspired to launch Zach's Web Designs in 2014 after attending the entrepreneurial Maverick Family Freedom Event with his father.
Zachary has built customizable websites for a variety of businesses, including Keep Punching, a nonprofit brain cancer organization, Ry's Ruffery, an all-natural dog biscuit company, and Emilee Tominovich Racing, the official website of an up-and-coming female race-car driver.
The company has generated $15,000 in revenue since its inception.
His newest venture, Serpent Skating, is a sports merchandise business specializing in laser-engraved skateboards. The enterprise is set to launch on Kickstarter this year.
Source: Gladiator Lacrosse
Gladiator Lacrosse was established in 2013 by then 13-year-old Rachel Zietz, an entrepreneur and lacrosse player, who found sports equipment too expensive and not particularly durable.
After attending the Young Entrepreneurs Academy in Boca Raton, Florida, she pitched her concept to investors and was awarded $2,700 toward development. She has since created a line of quality and affordable rebounders and practice goals for lacrosse players.
In the company's first year, Rachel's company had $200,000 in sales. Two years later, Gladiator Lacrosse has generated more than $1 million in revenue.
Most recently, the young executive was honored as one of the finalists for the Greater Miami Chamber of Commerce's 2015 Entrepreneur Award.
Noa MintzSource: Nannies by Noa
Noa Mintz is a freshman in high school and she already makes more money than you do.
At 12 she launched Nannies by Noa, a full-service childcare agency. Three years later, her business services 190 clients in New York City with a network of 150 sitters and nannies.
"I knew what kids wanted in a nanny. I had the unique perspective." Noa said in an interview in February. "So I set out to start with a couple family friends. Then people thought it was a really good idea to have a kid helping them. And trust for the brand grew."
Noa does not disclose her company's financial information, but she said Nannies by Noa charges a standard 15 percent of a nanny's initial annual salary. For baby-sitting services, clients are charged a flat-rate of $5 per hour.
Asya Gonzalez started her online fashion business, Stinky Feet Gurlz, at age 13. Now 17, her business averages $1,000 to $2,000 a month in sales.Source: Kristin McLaughlin
Stinky Feet Gurlz, a 1940s-inspired apparel and accessory company, was founded by Asya Gonzalez at age 14. Three years later, the recent high school graduate is in the process of developing a new clothing line, which delves into winter sports wear, and prepping for her freshman year at the University of Denver.
Gonzalez, 18, told CNBC she estimates that her company's sales will reach $7,000 to $10,000 a month with the addition of the new line of apparel.
In addition to her business, Gonzalez runs her own charity, She Is Worth It, which is dedicated to fighting sex trafficking of children. A portion of all sales from Stinky Feet Gurlz goes directly to this organization.
Most recently, Gonzalez was honored by the National Federation of Independent Business with the Dan Danner Leadership Award. For her entrepreneurial efforts, Gonzalez also received a $15,000 scholarship from the organization.
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