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ffe6f6162a9db0f33beee64f7ed83a91 | https://www.cnbc.com/2015/09/30/look-overseas-blackrocks-russ-koesterich.html | Want gains? Look overseas: BlackRock's Russ Koesterich | Want gains? Look overseas: BlackRock's Russ Koesterich
VIDEO2:2802:28Global bright spots for your moneyGlobal Investing Hot Spots
Investors seeking gains amid a volatile market should look outside of the U.S., BlackRock's Russ Koesterich said Wednesday.
"Looking for opportunities to add to positions in international developed markets is one of the strategies we'd be looking to deploy," the firm's global chief investment strategist said in a CNBC "Squawk on the Street" interview.
U.S. markets have been roiled recently, with all three major U.S. indexes shedding more than 7 percent this quarter. Still, Japan's Nikkei 225 index and the German DAX have dropped about 14 percent and roughly 12 percent in the same period, respectively, amid growth concerns in those regions.
How 3 emerging markets pros avoided worst of collapse
"Yes, the U.S. is growing faster than Europe or Japan, but the reality is that the U.S. market is facing several headwinds that are idiosyncratic," Koesterich said.
"The stronger dollar is a headwind for U.S. companies, we have a virtual [profits] recession among U.S. large caps and you already have U.S. companies with margins close to record highs," he said. "It's going to be very difficult for them to grow their earnings through expansion of profit margins; it will be easier for companies in Europe and Japan to do that over the next year or two."
Koesterich also noted that some emerging markets, namely India, Mexico and some parts of China, could also present some upside to investors.
"Looking at those bright spots and realizing that EM has underperformed for about four to five years, valuations, at least on a price-to-book basis, are at their cheapest compared to developed markets in 12 or 13 years," he said.
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5e620a2fe634113b5fb00bac8cf3839b | https://www.cnbc.com/2015/09/30/managing-a-scandal-what-can-you-learn-from-fifa-and-vw.html | Managing a scandal: what can you learn from FIFA and VW? | Managing a scandal: what can you learn from FIFA and VW?
VIDEO3:0803:08Here's why trading VW shouldn't be banned
Both Volkswagen and FIFA have been rocked by recent crises, but the two have responded in very different ways. Experts believe there are some valuable lessons for managers on how the two organizations handled their scandals.
CNBC takes a look at how businesses can learn from their mistakes.
Swiss authorities announced late last week that they had started investigations into FIFA president Sepp Blatter about a number of issues, including a suspicious payment to UEFA president Michel Platini. The football governing association has been hit by a string of corruption allegations, but Blatter refuses to step down.
FIFA President Sepp Blatter pauses during a news conference at the FIFA headquarters in Zurich, Switzerland, June 2, 2015.Ruben Sprich | Reuters
Blatter's refusal has been met with disapproval. Andre Spicer, professor of organisational behavior at Cass Business School, said the decision indicated hubris.
"It seems his power has deafened him to even the loudest calls for him to leave. This is common when a leader has been all-powerful for some time," said Spicer in a press statement. "By not heeding all signs of failure, they can end up dragging their firm down with them."
It is time, Spicer warns, for FIFA's to start looking outside the organization on how to act and communicate.
"I think FIFA's biggest problem is hubris. They don't seem to have learnt anything at the moment," Spicer told CNBC in a phone interview. "They need to listen to criticism from outside, and show that they can change the root causes of their problems."
In contrast to Sepp Blatter, Volkswagen CEO Martin Winterkorn , just days after the German carmaker admitted to cheating on U.S. emissions tests. Around 11 million cars could be affected.
On Thursday, German prosecutors said there would be no formal inquiry against Volkswagen, according to media reports.
Read More
Winterkorn's swift resignation, Spicer argues, shows Volkswagen is accepting responsibility for its actions and is trying to show that it is changing the root causes of its problems.
"One lesson (from the Volkswagen scandal) is you can do the wrong things for quite some time, but eventually you get caught," explained Spicer. "They did the right thing owning up to their problems. The danger is if they own up and then forget about it and in 3-6 months' time there's no discussion about it."
Spicer has also looked into how companies react to scandals and found that, once the scandal is resolved, organisations tend to forget the lessons they've learned.
"Companies that keep around the reminders of what they did wrong will remember for years later," said Spicer. These reminders could be the people involved, physical evidence or the stories told amongst staff.
A general view of Volkswagen Group's headquarters in Wolfsburg, Germany.Alexander Koerner | Getty Images
Volkswagen's decision to replace Winterkorn with Matthias Mueller from VW subsidiary Porsche since 2010 has received criticism.
"By appointing an insider from within the VW Group as their new CEO, the company has missed an opportunity to restore trust and totally underestimated the challenges they face," said Ian Baxter, CEO of Baxter Freight, in a press statement.
"They should have appointed a highly trusted figure from outside the car industry with a mandate to clean up the mess they've inherited, ship out the management that are implicated and take immediate action to protect the company's financial position."
Baxter added that appointing an outsider was the only way Volkswagen could begin to rebuild the trust of shareholders and regulators. However, hiring an outsider can create its own problems, Spicer argued.
"In the short-term, it will restore trust," he said. "The problem of bringing in an outsider is that they won't know how the business works, so they may make mistakes by bringing in new systems, and they will have to spend a lot of their time building up relationships, contacts and trust."
Appointing an outsider can help. For instance, U.K. food retailer Tesco appointed Philip Clarke, who had worked inside the company for years, in 2011 as its new CEO. But Clarke was replaced in 2014 with an outsider, Dave Lewis, because of three years of declining sales and profit warnings during his tenure.
"They appointed an outsider who restored trust," Spicer explained.
Replacing an executive can be a daunting challenge. CNBC asked Rajan Mirpuri, director of recruitment consultancy Hudson Executive, what companies need to consider.
"The appointment of an executive hire is one of the most important decisions a company can make. The cost, implications and repercussions of getting it wrong are too great to measure," Mirpuri told CNBC in an email.
"When making executive-level hiring decisions, Hudson recommends using comprehensive assessment approaches to thoroughly explore aspects such as individual preferences, motivators, abilities and behaviours as they relate to key role expectations and performance requirements."
Follow Luke on Twitter: @LukeWGraham
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90785824bf0ce54c90c21e237372912a | https://www.cnbc.com/2015/09/30/ministers-auto-ip-dairy-sticking-points-on-tpp-deal.html | Autos, dairy, IP still sticking points for TPP deal | Autos, dairy, IP still sticking points for TPP deal
VIDEO3:1203:12Will there be a TPP deal this week?
Pacific trade ministers readied on Wednesday to close the biggest trade deal in a generation but warned there was still work to be done on issues ranging from intellectual property to trade in dairy and automobiles.
Australian Trade Minister Andrew Robb said ministers from the 12 countries negotiating the Trans-Pacific Partnership (TPP) detailed outstanding issues at a meeting in Atlanta, Georgia, and pledged to try to close the deal this week.
"All the participants were genuine about coming here to conclude," he told Reuters after the plenary session on the TPP, which would cut trade barriers and set common standards for 40 percent of the world economy.
"There's an intent there. We are now swapping different versions of possible outcomes, but we have got a lot to do," he said.
The loading and unloading of cargo freighters has been suspended at all 29 U.S. West Coast ports this weekend because of chronic slowdowns on the docks that shippers and terminal operators have blamed on the dockworkers' union, the companies said Friday.Bob Riha, Jr. | Reuters
Japanese Economy Minister Akira Amari was quoted by Japanese media as saying, "We have to head into this with the expectation that we can wrap things up."
Japan, the second largest economy in the bloc after the United States, is under pressure to open its agricultural sector to more imports and wants to secure a good deal for its automakers.
Australia is keen to export more of its sugar and dairy, and wary of a push by the United States to set patent periods for medicines that would extend beyond the current five years currently mandated by Canberra.
Read MoreTop US trade expert: Massive Trans-Pacific deal will get done
Monopoly periods for next-generation biologics drugs are one of the thorniest issues left for ministers to debate, along with local content rules on autos traded between Mexico, Canada, the United States and Japan.
"The landing zones are very complicated, but we are weighing all the alternatives to achieve a deal," a source close to the negotiations said.
The source played down the chance of closing the deal with only some partners, one option that was being discussed on the sidelines of the talks in Atlanta.
VIDEO7:2107:21CABA: SEA businesses hope TPP, RCEP can co-existSquawk Box Asia
New Zealand Prime Minister John Key said he sees a good chance of wrapping up a Pacific trade deal this week, but he said the pact could be scuppered if negotiations were to drag on.
Speaking at the Asia Society in New York City, Key said New Zealand, home to the world's largest dairy exporter Fonterra, was still not happy with dairy market access but agreement was closer on other issues, including intellectual property.
With presidential elections in the United States set for November 2016 and some opposition in Congress to the deal, time is of the essence to complete the agreement, which could be a legacy-defining achievement for U.S. President Barack Obama.
"The window of opportunity to complete TPP is closing so you wouldn't say it's impossible to complete the deal if it doesn't take place in Atlanta, but it does become more difficult," Key said.
TPP leaders are scheduled to meet at an Asia-Pacific Economic Cooperation summit in the Philippines in mid-November, which Key said was "probably the last opportunity for 2015" to close the trade deal, already more than five years in the making.
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5200c9af52405e95ceb3d2686f3e8572 | https://www.cnbc.com/2015/09/30/most-americans-are-not-ready-for-chip-cards.html | Most Americans are not ready for chip cards | Most Americans are not ready for chip cards
VIDEO1:5001:50Your new chip credit card
The change from credit cards that you swipe to chip-enabled ones that you dip is expected to accelerate as an Oct. 1 deadline approaches that will make merchants liable for fraudulent charges if they don't accept the more secure chip cards.
But most American credit card holders aren't ready for chip cards. Six out of 10 credit card holders still don't have a chip card, according to a new survey by CreditCards.com.
Neither are merchants. BridgePay Network Solutions, a payments software maker, estimates that only 5 to 10 percent of U.S retailers are prepared to accept chip cards, known in the industry as EMV cards, named after EuroPay, MasterCard and Visa that created the technology standard. Consulting firm Ovum found that 36.8 percent of merchants it surveyed have no interest in adopting EMV in the future and estimates more than 5 million businesses aren't ready for chip cards.
The liability shift, which is being imposed by the credit card industry itself, will make most U.S. merchants liable for any fraudulent transactions if their credit card readers do not accept EMV card payments. Previously, credit card issuers were the ones liable for any fraudulent transactions. Regardless, consumers won't be on the hook for the fraud.
Credit cards now come with a chip embedded
While the shift will not make the consumer liable for fraud, experts note that it will bring several changes. "I think it's going to take a lot of time for people to get used to it," said Laurence Cooke, co-founder and CEO of nanoPay, an online payments company.
Consumers using chip cards will have to pay by dipping their cards into the point of sale terminal and either input a pin number or sign the receipt. Even though EMV transactions process a few seconds faster than swiping, "it will feel like it takes longer to pay because people can't just swipe and put away their cards," said Sean McQuay, credit cards expert at NerdWallet, which provides online credit card comparison tools. "People should expect long lines this holiday season," he said.
Many consumers in the U.S. are not familiar with this technology and the shift will also force businesses to train their employees in using it, Cooke said.
Smarter credit cards befuddle small businesses
Transactions executed using EMV cards are more secure than those done by swiping because they create a temporary payment credential for every transaction, while the payment information in a card's magnetic stripe remains the same.
But "it's not until both consumers and merchants switch to EMV that you'll have greater said security," McQuay said.
The shift will make online transactions a bigger target for fraud since it does not change how those payments are processed, McQuay said, and transactions at the gas pump will be more targeted because the liability shift for gas stations does not kick in until 2017.
Credit card debt is on the rise
The transition from traditional magnetic stripe to EMV credit cards will take time. "We're not going to have an overnight shift," McQuay said.
Matt Schulz, senior industry analyst at CreditCards.com, expects more merchants to adopt EMV readers by the end of the year. "This is the biggest change in decades in how credit cards are used in America, so we shouldn't be surprised that things are moving slowly," Schulz said.
Chip cards will make buying things overseas easier and safer for Americans who travel because EMV technology has broad adoption internationally, Schulz said.
The embrace of chip cards by merchants also could benefit consumers who prefer using mobile payment services, such as Apple Pay and Android Pay, because more merchants will be installing EMV terminals that are compatible with mobile payment technology. "While there will be more places that take EMV-chipped cards, there will also be more places that take these services," Schulz said.
Correction: An earlier version of this story incorrectly attributed estimates of merchant EMV adoption from BridgePay Network Solutions to Fiserv.
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aa6ba59f6beb49911dbfe7a3750b6bfb | https://www.cnbc.com/2015/09/30/obama-handshake-with-iran-foreign-minister-makes-ayatollah-supporters-angry.html | Iran’s foreign minister under fire over Obama handshake claim | Iran’s foreign minister under fire over Obama handshake claim
Iran's Foreign Minister Mohammad Javad Zarif (C) looks on as US President Barack Obama addresses the 70th Session of the United Nations General Assembly on September 28, 2015 at the United Nations headquarters in New York.Mandel Ngan | AFP | Getty Images
Iran's foreign minister is under attack from hardliners after reportedly shaking hands with the US president at the UN in New York.
There has been no official confirmation that the handshake between Mohammad Javad Zarif and Barack Obama took place but domestic media have quoted "informed" sources as saying it happened by accident on the sidelines of the UN General Assembly this week.
The encounter comes amid fierce debate in Tehran over the future of relations with Washington in the wake of Iran's nuclear agreement with world powers. Ayatollah Ali Khamenei has made clear that the deal will not change Iran's hostile relations with the US, which has been interpreted by hardliners as suggesting that any Iranian official who met the US president would be crossing a "red line".
The ayatollah's stance is designed, in part, to appease his hardline support base, which felt undermined by the compromises made during the nuclear negotiations. He also suspects the US of pursuing a policy of regime change in Iran since the 1979 Islamic revolution.
VIDEO3:2703:27Pres. Obama: Strength of nations depends on its people
Division over the future of ties with the US centre on concerns among regime conservatives that moderate politicians are trying to ease tensions with Washington through co-operation over the conflict in Syria.
Hamid-Reza Taraghi, a conservative politician, said on Monday that the "unjustifiable" handshake was "probably accidental" but that parliament would determine whether Mr Zarif's gesture was deliberate or part of a "conspiracy". If deliberate, Mr Zarif would "definitely face impeachment".
More from the Financial Times:
Iran desperate for nuclear deal dividend Obama muddled on Iran 'RouhaniCare' set to boost Iran president
"We don't think [Mr Zarif] could dare to act contrary to the orders of the supreme leader," Mr Taraghi said.
Mansour Haghighatpour, another political conservative and member of the parliament's national security and foreign policy committee, said parliament would not remain indifferent should it be confirmed that Mr Zarif had ignored the regime's red lines.
"There should not be talk of any handshakes with US officials as long as the US supports terrorists and does not respect our nation's rights," Mr Haghighatpour told Tasnim, a news agency close to the Revolutionary Guards.
Read MoreSenate is an 'embarrassment' over Iran deal
Whether the threats of impeachment would be acted on remains unclear. Mr Zarif is seen by many Iranians as a national hero who spearheaded nuclear talks with the world's major powers to achieve a breakthrough deal that would lift crippling economic sanctions.
In a recent television interview in the US, Hassan Rouhani, the centrist president, said that despite "the distance, the disagreements, the lack of trust" between Tehran and Washington, both countries were moving towards decreasing the enmity between them. He also indicated in the US the possibility of co-operation with Washington over regional issues.
"The handshake has symbolic importance in line with what has happened during the nuclear talks to extend co-operation from nuclear matters to regional issues," said a reform-minded analyst. "The issue of the US is linked to domestic politics."
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2be51ad1e1de04d3255db8a600afdd46 | https://www.cnbc.com/2015/09/30/oil-edges-up-on-estimate-of-strong-demand-syria-risks.html | US oil settles down 0.8%, at $44.74 a barrel | US oil settles down 0.8%, at $44.74 a barrel
Essam Al-Sudani | Reuters
Oil prices fell nearly 1 percent on Thursday as the government's storm monitor altered forecasts for the path of the latest U.S. hurricane, snuffing out an early rally that was prompted by fears of storm damage U.S. East Coast oil installations.
Comments from Russia's foreign minister also eased fears over escalation in the Syrian war.
Hurricane Joaquin, which strengthened into a powerful Category 3 storm and was moving over the Bahamas, will hit land about 100 miles east of New York City in eastern Long Island as a tropical storm, the National Hurricane Center's (NHC) latest report showed.
Earlier, the NHC had forecast that the storm would hit the New Jersey coast and New York Harbor, home to several oil refineries, pipelines and other energy infrastructure.
Read MoreHurricane Joaquin gains strength: East coast prepares
U.S. West Texas Intermediate crude closed down 0.8 percent, at $44.74 a barrel. Brent crude the global benchmark for oil, was down 66 cents at $48.40 a barrel after hitting a one-week high at $49.84.
fell to a three-year intraday low on heavy surpluses. It was last down nearly 3 percent at $2.630.
VIDEO1:3001:30$65: Oil’s maximum high
A Houston-based broker said oil bulls bought crude in early trade as gasoline rallied more than 3 percent on the storm fears. But gasoline gave back those gains and fell about 1 percent in later trade.
Traders watch Atlantic hurricanes because they can lead to precautionary shutdowns of oil installations, and in exceptional cases, like Hurricane Sandy in 2012, damage energy infrastructure.
The NHC suggested earlier on Thursday that Joaquin could follow a course similar to Hurricane Sandy. But with the forecast track still uncertain and the storm days away from New York, energy firms said they were on alert but not shutting any facilities yet.
Read MoreWhy a rate hike could be good for oil
"The latest update on Joaquin is bearish," said Scott Shelton, crude oil broker and commodities specialist at ICAP in Durham, North Carolina.
Heightened geopolitical risk from the worsening war in Syria also boosted crude futures in Thursday's early trade.
Russia launched air strikes in Syria in support of President Bashar al-Assad's government on Wednesday in its biggest Middle East intervention in decades. The attacks raised the specter of Washington and Moscow running air strikes in the same region, but without coordination.
But comments from Russian Foreign Minister Sergei Lavrov on Thursday reduced the risk premium that had pumped up oil prices, Again Capital founding partner John Kilduff told CNBC.
Russia does not consider the U.S.-backed Free Syrian Army rebels a terrorist group and they should be part of a political solution in Syria, Lavrov said on Thursday.
Read MoreRussia strikes in Syria: Why you should be worried
"This is absolutely necessary for the political process to get hold and to be sustainable. We consider terrorists those who have been recognized as such by the United Nations and by the Russian Federation legal system," Lavrov told a news conference at the United Nations.
Those comments "calmed the tensions around the situation for now," Kilduff said. "I think the air has gone out of the Syria situation for now."
Also on Thursday, a U.S. defense official confirmed that talks between the U.S. and Russian militaries could take place within the next day, possibly via secure video-conference or in person. The Pentagon aimed to involve both civilian and uniformed defense officials in the talks.
More data suggesting an economic slowdown in China and a spike in weekly U.S. oil inventories also weighed on markets.
—CNBC's Tom DiChristopher contributed to this story.
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8c4452a3346d087192b0cbe56ee9a65f | https://www.cnbc.com/2015/09/30/oil-price-collapse-gives-euro-zone-some-relief.html | Oil price collapse gives euro zone some relief | Oil price collapse gives euro zone some relief
The falling euro, cheap energy prices and "good policymaking" have helped bolster growth in the euro zone this year and the outlook for the remainder of 2015 looks even more positive, according to new forecast.
In a report out on Thursday, EY estimated that economies in the 19-country currency union grew by an average of 0.5 percent in the third quarter of 2015, up from 0.4 percent in the second quarter. It forecast 1.6 percent economic expansion for 2015 as a whole and 1.8 percent growth in 2016.
Read MoreBad quarter for stocks; dire one for commodities
Workers drill at the Saudi Aramco oil field complex facilities at Shaybah, Saudi Arabia.Reza | Getty Images
"The euro zone remains in a 'sweet spot,' benefiting from lower energy prices, a more competitive exchange rate and solid demand in the U.K and U.S.," Tom Rogers, senior economic adviser to the EY Eurozone Economic Forecast, said in a news release.
Weakness in oil prices boosted household incomes and households' views of labor market prospects are improving tentatively, the report said.
"With demand looking robust in the euro zone's key advanced economy export markets and renewed easing in oil prices, the outlook for the remainder of the year is positive," Rogers added.
Read MoreWhy a rate hike could be good for oil
At under $50 per barrel, the price of oil is down 57 percent from its June 2014 peak. Prices are seen staying low, as U.S. shale producers start to cut costs and OPEC member-countries continue to pump out oil at high levels in their attempt to maintain market share.
A weaker euro is also a "welcome relief for euro zone firms," EY said, with the currency bloc posting the strongest year-on-year growth rate for four years in the second quarter of 2015. Faster growth in neighboring U.K. and the U.S. provided an additional boost.
EY's forecast that exports would grow by 4.8 percent this year, before easing to 4.0 percent in 2016 and 3.6 percent in 2017.
However, the market volatility in China and concerns about its economic slowdown are a downside risk for the euro zone, said EY.
"Forecasts for export growth are subject to greater risk than they have been for some time in the light of mounting uncertainty about the slowdown in China and associated recent financial market turbulence," Rogers said.
Similarly, ratings agency Standard & Poor's forecast on Wednesday that the euro zone's recovery would extend into the next couple of years, but that China could dent growth momentum. It added that if Chines growth came in significantly below expected, than Germany and the Netherlands would be the worst hit among the euro zone countries.
In addition, the ratings agency forecast that the European Central Bank would extend its quantitative easing program, most likely until mid-2018. It said the size of the stimulus program could reach 2.4 trillion euros ($2.7 trillion) – more than twice the original 1.1 trillion euros commitment.
Follow us on Twitter: @CNBCWorld
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6cf738d36b978c7f6a83afff464c16b0 | https://www.cnbc.com/2015/09/30/opec-oil-output-rising-led-by-iraq-survey.html | OPEC oil output rising, led by Iraq: Survey | OPEC oil output rising, led by Iraq: Survey
OPEC oil output has risen in September from the month before, a Reuters survey found on Wednesday, as Iraq's northern exports recovered from disruption that had halted supply growth from the group's second-largest producer.
Saudi Arabia and other Gulf members of the Organization of the Petroleum Exporting Countries have kept output mostly steady, a further sign they are sticking to their focus on defending market share instead of prices.
OPEC supply has increased in September to 31.68 million barrels per day (bpd) from a revised 31.57 million in August, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants.
Iraqi Southern Oil Company engineers look towards the flares in the Zubair oil field in southern Iraq.Essam-Al-Sudani | AFP | Getty Images
With the increase in supply this month, OPEC has boosted production by almost 1.5 million bpd since it switched in November 2014 to defending market share from its previous policy of cutting output to prop up prices.
Oil prices have almost halved in the past year to $48 a barrel because of excess supply, although analysts see signs that OPEC's strategy to curb growth in higher-cost production by letting prices fall is starting to deliver.
"The oversupply is still considerable, but I think it will be less next year as non-OPEC supply is likely to shrink," said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
The OPEC supply boost in September has come from Iraq and a few smaller producers.
‘Last man standing’: Why Shell axed its Arctic push
Shipments from Iraq's north via Ceyhan in Turkey by Iraq's State Oil Marketing Organisation and the Kurdistan Regional Government have increased from August, when halts in the flow along the pipeline from Iraq slowed exports.
Exports from Iraq's main outlet to world markets, its southern terminals, changed little from August's rate, according to shipping data and industry sources.
Smaller increases have come from OPEC's two west African producers, Nigeria and Angola, both of which have slightly boosted exports, according to loading schedules. Nigerian exports are set for further growth in October.
Output in Iran, eager to reclaim its spot as OPEC's second-largest producer if and when sanctions are lifted, is edging up, the survey found, and Qatar posted a small supply rise after an accident involving an offshore rig in July that an industry source said slowed output.
Kuwait's output was stable although the United Arab Emirates is pumping more crude due to increasing supplies from its Upper Zakum field, sources in the survey said.
Top exporter Saudi Arabia kept output steady in September as reduced use of crude in domestic power plants was offset by a gentle uptick in exports towards the latter part of the month.
Saudi output remains close to the record high of 10.56 million bpd it pumped in June, as it focuses on market share. Riyadh has regained some market share in 2015, according to a Reuters analysis published on Wednesday.
Libyan supply edged lower in September. Output remains disrupted by unrest, and negotiations to reopen closed oil facilities have yet to succeed.
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61cc8c2ec1d9fa64ca2615074d308fbb | https://www.cnbc.com/2015/09/30/open-to-adjusting-bond-market-rules-to-improve-liquidity-feds-dudley.html | Open to adjusting bond market rules to improve liquidity: Fed's Dudley | Open to adjusting bond market rules to improve liquidity: Fed's Dudley
William C. Dudley, president and chief executive officer of the Federal Reserve Bank of New YorkScott Eells | Bloomberg | Getty Images
New York Fed President Bill Dudley said Wednesday he would be open to new bond market rules if they would improve liquidity.
However, "we certainly don't want to undermine the progress we have made" after the crisis, he said.
Dudley also said that bond market rules are not solely to blame for changes within the bond market and, even if they were to blame for lower liquidity, one important tradeoff is a more resilient market.
"Even if one were to interpret the evidence as indicating that liquidity has been reduced, it is not clear whether regulation is the primary driver, as other changes have played important roles as well," he said at a securities industry event. "The evidence to date that liquidity has diminished markedly is, at best, mixed."
Dudley, a voting member on the Fed's policy setting committee, said Monday the central bank would likely raise interest rates this year and could reach its inflation target by next year.
The Fed's Federal Open Market Committee is scheduled to meet in October and in December.
Get the market reaction here.
—Reuters contributed to this report.
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f8f97970219f1b40901417ea8a99cb99 | https://www.cnbc.com/2015/09/30/portugal-election-could-shock-if-austerity-wins-votes.html | Austerity a vote-winner? This poll could be a shocker | Austerity a vote-winner? This poll could be a shocker
A general election in Portugal this weekend will be closely watched by European leaders as it will show whether steep tax rises and spending cuts can win a general election.
According to the latest opinion polls in the run-up to the vote on Sunday, Portugal's ruling center-right coalition is likely to win more seats than the main opposition center-left Socialist Party, despite overseeing a long period of harsh cuts.
The result – set to fall short of an absolute majority -- will be closely watched by other European leaders as it could show whether a government that has imposed unpopular austerity measures as part of a financial bailout can be re-elected.
Portugal's ruling "Portugal Ahead" (PaF) coalition – made up of the center-right Social Democratic Party (PSD) and conservative People's Party (CDS-PP) – has been in power since 2011, the year the country requested a financial rescue.
Pedro Passos Coelho, Portugal's prime minister, greets a supporter during a political rally ahead of the election in Braga, Portugal, on Sunday, Sept. 27, 2015.Paulo Duartes | Bloomberg | Getty Images
As part of the country's 78 billion euro ($87.9 billion) bailout from its fellow euro zone members, the International Monetary Fund and the European Central Bank, the government led by incumbent Prime Minister Pedro Passos Coelho has had to impose swathes of spending cuts and tax rises.
With a general election looming large, the public could well decide to avenge itself for those cuts by electing an opposition party.
The polls remain tight, however, according to Antonio Barroso, vice president of risk consultancy Teneo Intelligence.
"With still around 30 percent of the electorate undecided, the race is likely to remain tight. Still, the ruling coalition is in a strong place to win the election," Barroso said in a note ahead of the election.
"The decision by the PSD and the CDS-PP to run together has allowed them to deliver electoral messages more consistently, which might help PaF to mobilize some undecided right-wing voters. In contrast, the left remains divided,"
The Socialist Party thus faced an uphill battle in the last days before the election, Barroso believed.
"The best chance for the socialists is to try to reverse the positive momentum of smaller left-wing parties by asking voters to strategically support the PS in order to kick out the right-wing ruling coalition. Short of such a change in the polls in the last days ahead of the election, the prospects of socialist candidate Antonio Costa becoming PM will be dim," he added.
If the coalition keeps its lead and Coelho is re-elected, he will be the first prime minister to be re-elected among the five euro zone states -- Portugal, Greece, Ireland, Cyrpus and Spain, which received a bank bailout -- that required emergency financial help between 2010 and 2013.
In Greece, voters turned against New Democracy, which was seen as far too eager to implement austerity measures as part of the Greece's bailout, and turned to leftwing anti-austerity party Syriza – although in the end it too relented amid capital controls and impending bankruptcy and this summer accepted a third bailout. Somewhat surprisingly, Syriza was re-elected earlier this month too.
Read More Greek election win overshadowed by reform urgency
Portugal could teach Greece a thing of two about bailout implementation. Despite the unpopularity of austerity measures in Portugal, which have included some of the biggest government spending cuts in 50 years and tax increases, fiscal discipline has appeared to have worked according to the data.
Having exited its bailout program successfully (and without much fanfare) in 2014, the economy looks like it is back on its feet. In fact, Portugal is seeing some of the best growth rates in the euro zone and the economy is expected to grow 1.6 percent in 2015, and 1.8 percent next year, according to the latest forecasts from the European Commission.
Showing it's in line to meet expectations for 2015, in the second quarter of the year, the economy grew 1.5 percent from the same quarter last year.
Read More Portugal 'fully back in the market'
Indeed, the day when Portugal's sovereign credit rating was downgraded to junk status by Standard and Poor's credit ratings agency in 2012 looks far off although its benchmark 10-year government bonds do fetch a higher yield (which reflects investor caution) than their euro zone counterparts, at around 2.5 percent currently.
Despite the positive growth rates, two and a half years of recession -- which it finally exited in August 2013 -- has left its mark on Portugal and the country is not problem-free.
Unemployment remains rather high at 12.1 percent -- albeit lower than Greece, at 25 percent, and Spain, at 22.2 percent. Its debt pile is also one of the highest in the euro zone's, after Greece and Italy, at 130.2 percent of gross domestic product (GDP) in 2014, Eurostat data shows.
In a boon for the opposition Socialist party last week, Portugal's National Statistics (INE) Institute revised up the country's budget deficit for 2014.
The INE reported a budget deficit, in which government expenditure exceeds revenue, of 7.2 percent of GDP for 2014 after including the cost of a state rescue of Banco Espirito Santo, which raised the gap from 4.5 percent reported previously.
The government had argued that the rescue loans should not be counted towards the deficit, but Eurostat disagreed.
Portugal's government has pledged to keep its budget deficit below 3 percent in 2015, in line with European Union rules, but including the cost of the 4.9 billion euro bank rescue could scupper that target.
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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cec55e27096d00b0dcaa59e666f5c3ed | https://www.cnbc.com/2015/09/30/power-play-emerging-market-risks-are-real.html | Richard Madigan, CIO, J.P. Morgan Private BankAdam Jeffery | CNBC
While the U.S. growth outlook remains solid, the risks in emerging markets are real, one of Wall Street's top strategists tell CNBC's "Power Lunch" on Wednesday.
J.P. Morgan Private Bank CIO Richard Madigan, who has $1 trillion in assets under management, does not believe the Fed is being altruistic in the face of rising pressure across emerging markets.
Read More How 3 emerging markets pros avoided worst of collapse
"They clearly understand the backdraft risks coming from emerging markets- having gone back to look at the consequences of 1994 and 1998 policy tightening, the U.S. economy isn't as strong as in those prior instances," Madigan said.
He thinks emerging economies will be challenged well into next year.
"We expect additional dollar strength once the Fed commits to raising rates, but for developed markets we believe the majority of the dollar bull-run is behind us. Emerging markets can see further currency pressure ahead- especially in Asia," Madigan said.
Disclaimer
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d6277f85641a1b08bcc4838af15e5f3c | https://www.cnbc.com/2015/09/30/putin-wins-parliamentary-approval-to-deploy-russian-forces-abroad--reports.html | Russia begins Syria strikes: Reports | Russia begins Syria strikes: Reports
Russian President Vladimir Putin addresses attendees during the 70th session of the United Nations General Assembly at the U.N. Headquarters in New York, September 28, 2015.Mike Segar | Reuters
The United States believes that Russia has started carrying out air strikes in Syria in the vicinity of Homs, a U.S. official told Reuters on Wednesday, adding that Moscow gave the United States a one-hour advanced notice of its operations.
The official, who spoke on condition of anonymity, said the information on the air strikes was preliminary and declined to give any details, including on the number of strikes or the aircraft used.
According to Syrian state television, the Russian warplanes carried out several airstrikes against Islamic State targets.
However, a French diplomatic source told Reuters Wednesday that the air strikes appear aimed at supporting Syrian President Bashar al-Assad by targeting opposition groups rather than Islamic State militants.
"If it is Homs, which it seems to be, it is not Daesh (Islamic State) that they are targeting, but probably opposition groups, which confirms that they are more in support of Bashar's regime than in fighting Daesh," the source said on condition of anonymity.
This comes after Russia's upper house of parliament, the Federation Council, approved a request by President Vladimir Putin to authorize the use of military force abroad, according to local reports.
The use of the military abroad will be related to national interests and will be limited to the use of the country's air force, local agencies reported.
Syria: Russia’s ticket back to the table?
What has Russia got invested in Syria?
The last time the Russian parliament granted Putin the right to deploy troops abroad, a technical requirement under Russian law, Moscow seized Crimea from Ukraine last year.
The Kremlin said the request was for "the deployment of a military contingent of the Russian Federation" outside the country on the basis of the "universally recognized principles and norms of international law."
Reuters contributed to this report.
Follow us on Twitter: @CNBCWorld
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90991aa4c64ec28354c9d834bdda4c80 | https://www.cnbc.com/2015/09/30/restaurants-account-for-75-of-sept-franchise-jobs-growth-adp.html | Restaurants account for 75% of Sept. franchise jobs growth: ADP | Restaurants account for 75% of Sept. franchise jobs growth: ADP
Romilly Lockyer | Getty Images
U.S. franchisees added 33,000 jobs in September, well-above August's gains, ADP said Wednesday.
"Franchise employment growth rebounded in September, exceeding August by 50 percent," said Ahu Yildirmaz, vice president and head of the ADP Research Institute.
Franchise jobs in August grew by 22,800, ADP said.
"The big story was restaurants, which accounted for about 75 percent of total franchise employment growth for the month," she said.
Job creation gets big boost from big business: ADP
These are the 9 worst chain restaurant meals
Restaurants added 25,190 jobs this month, growing at a 0.6 percent monthly rate. In August, restaurants added 9,340 jobs.
Auto parts and dealers contributed 20 percent of September franchise jobs, adding 6,600, or 0.6 percent, while business services franchisees contributed to a 4 percent loss in monthly growth.
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7db0cf3ff20e15b73db04445cda5279d | https://www.cnbc.com/2015/09/30/retail-roundtable-buy-for-the-long-term.html | Retail Roundtable: Buy for the long term | Retail Roundtable: Buy for the long term
Buying for the long term is the best way for retail investors to play the volatile market, according to two retail investors.
Daniel Pincus, founder of the World Golf Network, and Kaley Burlingame, co-CEO of Virginia Tech SEED (a student-managed endowment fund), told CNBC's "Closing Bell" what their top retail picks are as the end of the year inches closer.
Pincus said, "I'd rather buy a company based on their management, based on their profitability and based on fundamentals because I know in the long term they'll be making money for us."
Some of these stocks include Apple, which Pincus said is his favorite, as well as Intel which he called a "tremendous company."
"Beyond technology, I think that the resources, like gas ... things which have been beaten down tremendously, I think in the long term are going to see a very big bounce but it's not going to be in the near term, but it will be soon after."
Pincus added, "I do believe we'll have one of those Christmas rallies by the end of the year, and I think that we'll be in a more positive mode once we get through this time frame."
Don't count on a very merry Christmas
Burlingame said she echoes Pincus' sentiment on buying long term.
"We're still actually relatively bullish, we're still buying stocks," she said. "We're not looking to make short-term plays off of downturns in the market or anything like that. But we do have a positive long-term outlook."
Burlingame said SEED is watching Wal-Mart closely. The retail giant was down more than 28 percent from its 52-week high at Wednesday's close. Burlingame said that while it will hurt their margin initially, she expects Wal-Mart's margins to improve in the long run following an increase in employee wages earlier this year.
"Eventually they're going to pass the price of [increased employee wages] back onto the consumer," she said. "We think that their margins will improve, especially as employee turnover decreases and they're able to lessen the amount of money that they're having to spend on training costs."
Is Wal-Mart just the first victim of rising wages?
In terms of the broader market, Pincus said that he believes the U.S. stock market is healthy and that price earnings ratios "are not astronomical at all."
However, in a Wednesday appearance, Carl Icahn told CNBC's "Fast Money: Halftime Report that earnings are "misstated," markets look "way overpriced," and that many investors have put themselves in "dangerous" positions.
Pincus said that this isn't necessarily the case.
"I believe that the market is fairly valued, and I believe that it could go down a bit more," Pincus said. "But I do not believe it is overvalued at this time."
— CNBC's Jacob Pramuk contributed to this report.
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abf648485aa9904799fe761e59198c9f | https://www.cnbc.com/2015/09/30/sainsburys-says-on-course-to-beat-annual-profit-forecasts.html | Sainsbury's says on course to beat annual profit forecasts | Sainsbury's says on course to beat annual profit forecasts
Scott Barbour, Getty Images News, Getty Images
British supermarket Sainsbury's said its full-year profit was set to exceed analysts' average forecast, despite the firm posting a seventh straight quarter of falling underlying sales.
The grocer said on Wednesday it now expected its 2015-16 underlying profit before tax to be moderately ahead of the published consensus of £548 million ($831 million) if current market trends continue. That would be down from £681 million made in the 2014-15 year.
Sainsbury's has shown greater resilience to the rise of German discounters Aldi and Lidl than its big four rivals, market leader Tesco, Wal-Mart's Asda and Morrisons, helped by the continued expansion of its convenience store estate.
However, its sales at stores open over a year still fell 1.1 percent, excluding fuel, in the 16 weeks to Sept. 26, its fiscal second quarter, hurt by fierce competition with rivals that has contributed to ongoing price deflation.
That compared with analysts' average forecast of a decline of 1.3 percent and a fall of 2.1 percent in the previous quarter.
Whole Foods Market to cut about 1,500 jobs
Wal-Mart to offer free grocery pickup in some US cities
Sainsbury's total sales, excluding fuel, rose 0.3 percent.
"During the quarter we saw an improvement in our key trading metrics. Both volume and transactions grew as the decline in average basket spend in supermarkets continued to stabilise," said Chief Executive Mike Coupe.
"Whilst the market is clearly still challenging, with food deflation impacting many categories, we are making good progress on delivering our strategy."
Sainsbury's, in common with its major rivals, is battling to stem the flow of shoppers to the discounters through price cuts and improvements to product quality and service, financed by cost savings and dividend reductions.
Coupe has previously said he expects like-for-like sales to be negative in the full 2015-16 year.
Shares in Sainsbury's, down 13 percent over the last six months, closed Tuesday at 229.3 pence, valuing the business at 4.42 billion pounds ($6.7 billion).
Earlier this month Morrisons posted a 2.4 percent fall in second quarter like-for-like sales, while in August Asda reported a 4.7 percent slump in underlying sales for its first quarter. Tesco will update on its second quarter on Oct. 7.
Follow us on Twitter: @CNBCWorld
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828adec0f53070ca24c1272e7aa4d58e | https://www.cnbc.com/2015/09/30/semiconductor-stocks-are-hitting-a-key-decision-point.html | Semiconductor stocks are hitting a 'key decision point' | Semiconductor stocks are hitting a 'key decision point'
VIDEO2:2802:28Trading Nation: Semiconductors among leaders
Semiconductor stocks were one of the best-performing industry groups in the on Wednesday, rising more than 3 percent.
And according to one technician, the group is approaching a "key decision point" that could lead both semiconductor stocks and the overall market higher.
"They're actually some pretty nice leadership today," Todd Gordon of TradingAnalysis.com said Wednesday on CNBC's "Power Lunch." "You've got pharma, you've got health care, you've got semis leading the way up."
Gordon said the industry group is bouncing off a support line near $545, which it also hit a year ago.
Now, Gordon is looking for the group to break through the recent downtrend since June of this year.
"I just want to trade towards it, and if we break through it, then we can talk about higher prices," Gordon said Wednesday.
Read More 'Merger mania' for semiconductors to return: Analyst
One stock in the industry group in particular is a standout, according to Dennis Davitt of Harvest Volatility Advisor.
Davitt said Intel is one of the best bets within semiconductor stocks, partly because of new opportunity in the mobile business and automated driverless cars, which tech giants such as Google and Apple are currently working to develop.
Read More Derivative trade: Buy Intel on jobs report?
"It's relatively a conservative stock, but it's also moving into growth areas," Davitt said Wednesday. "With all the automatic driving cars out there, Intel is really big in that space. So anything under the hood that involves a chip, is pretty much owned by Intel."
Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com
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be770b7b251d4039dcab8ae4833990a3 | https://www.cnbc.com/2015/09/30/stocks-are-going-higher-heres-how-to-profit-trader.html | Stocks are going higher—here's how to profit: Trader | Stocks are going higher—here's how to profit: Trader
VIDEO19:2719:27Trading Nation, September 30, 2015Trading Nation
Traders Todd Gordon and Andrew Keene are trading the market's next move—and taking your live calls and tweets!
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a1768a5642d0c624dfcaf65dfa722609 | https://www.cnbc.com/2015/09/30/stocks-may-end-bad-quarter-on-a-strong-note.html | Ralph Lauren is stepping aside as CEO of his namesake company in November. He's going to be replaced by Stefan Larsson, the outgoing president of Gap's Old Navy brand. Lauren plans to remain design chief. Following the announcement, (GPS) was downgraded to "underperform" from "neutral" at Mizuho Securities. (Reuters)
Twitter (TWTR) is said to be working on a new product to allow users to post tweets longer than the current 140-character limit, which has been a trademark of the social network since its inception. (Re/code)
Apple Music has priced its China launch today at a steep discount to what it charges in the U.S., but the music streaming service may be a tough sell. The service, at $1.57 a month, is significantly below the U.S. cost of of $9.99. (CNBC)
Chesapeake Energy (CHK) will reduce its workforce by about 15 percent, or 740 jobs, as depressed energy prices at the nation's No. 2 natural gas producer. (Reuters)
Tesla (TSLA) unveiled its long-awaited electric crossover last night, the Model X, with a range of about 250 miles per charge and zero to 60 mph in as little as 3.2 seconds. (USA Today)
Ferrari's expected IPO could launch as soon as Friday, according to CNBC sources, with pricing in two weeks. The sports car brand is looking to raise $1 billion.
American Airlines (AAL) in recent weeks has quietly added free, real-time online luggage tracking for checked bags, allowing customers to follow them from check-in to pickup. (Chicago Tribune)
Starting tomorrow, Amtrak passengers with more than two personal items and two carry-on bags, adding up to 150 pounds, will be charged $20 for each bag over the quantity and size limit. (Washington Post)
Move over, Jeb Bush, Carly Fiorina, and Fox News — Donald Trump has somebody else to argue with: Forbes magazine and its new estimate of his net worth at just $4.5 billion, less than half Trump's claim of more than $10 billion. (CNBC)
The House and Senate today are expected to pass a stopgap funding bill, without Planned Parenthood defunding, to avert a government shutdown. Meanwhile, GOP leaders and President Barack Obama are trying to reach a long-term spending deal. (USA Today)
Russia's upper house of parliament has approved a request by President Vladimir Putin to authorize the the use of military force abroad, paving the way to build up a presence in Syria. (CNBC)
Pope Francis met secretly in Washington, D.C., last week with Kim Davis, the county clerk in Kentucky who defied a court order to issue marriage licenses to same-sex couples, according to her lawyer. (NY Times)
Tropical Storm Joaquin is lurking in the Atlantic Ocean, on the verge of becoming a hurricane today, but meteorologists were still divided on how hard the East Coast would get hit. (NBC News)
With interest rates swinging relatively widely day-to-day, due to volatility in the U.S. stock market and overseas financial markets, total mortgage application volume fell 6.7 percent last week.
Ahead of Friday's government employment report for September, the ADP private sector job numbers are out at 8:15 a.m. ET this morning, with economists expecting a 200,000 advance for September, compared to a 190,000 gain in August.
The Chicago purchasing managers index for September, released at 9:45 a.m. ET, is expected to show a reading of 52.9, compared to the 54.4 level in August.
Oil prices were under some pressure this morning, after an unexpectedly high build in U.S. crude inventories as measured by the American Petroleum Institute. Weekly stockpile numbers from the government are out at 10:30 a.m. ET.
There's no shortage of Fed-related speakers today, including central bank chief, Janet Yellen, who gives the opening remarks at a banking conference in St. Louis at 3 p.m. ET. St. Louis Fed President James Bullard and Fed Gov. Lael Brainard appears at the same event, while New York Fed President William Dudley appears at SIFMA conference in New York this morning.
Costco (COST) late Tuesday reported quarterly profit of $1.73 per share for its latest quarter, 7 cents above estimates, but revenue was below forecasts on lower fuel prices and a stronger U.S. dollar.
AT&T (T) will change the way its DirecTV unit uses to count commercial subscribers, which will trim the official subscriber count by 918,600. The company said revenue and cash flow won't be affected by the change.
Starting tomorrow, Target (TGT) will match the online prices of more than two dozen of its Internet competitors, including Amazon (AMZN) and Wal-Mart (WMT).
Amazon is testing a service called Amazon Flex, a Uber-like service for package deliveries. Drivers will be paid up to $25 per hour to deliver Amazon orders using their own cars.
JPMorgan Chase (JPM) will have to face a class action suit in the U.S. related to the London Whale case, which saw the bank take a $6.2 billion loss. That follows a court ruling in New York late Tuesday.
Ford (F) received a five-day strike notice at a key plant for its popular F-150 pickup truck. The strike authorization comes amid disagreements over a local labor contract.
Advance Auto Parts (AAP) is a target of activist hedge fund Starboard Value, according to the Wall Street Journal, which said Starboard will announce today a 3.7 percent stake in the auto parts seller.
Despite support at the top, gender equality is a long way off at most U.S. companies, a new study shows, because a majority of women say they would rather not grab the brass ring. (WSJ)
More than 15 million people enrolled in the top 10 Medicare Part D prescription drug plans will face average next year, according to a new analysis. (CNBC)
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bcdfc18aa1b956809910282b5e0dceb2 | https://www.cnbc.com/2015/09/30/sunken-sentiment-investors-fear-1987-like-fall.html | Sunken sentiment: Investors fear 1987-like fall | Sunken sentiment: Investors fear 1987-like fall
A trader on the New York Stock Exchange holds his head in October 1987 as stocks were devastated during one of the most frantic days in the exchange's history.Maria R. Bastone | AFP | Getty Images
Investor sentiment is continuing to deteriorate, according to surveys and Wall Street market strategists.
"The bulls dipped further to 24.7 percent, from 26 percent a week ago. That is a big drop from late April when the bulls were 57.4 percent," John Gray of Investors Intelligence wrote in a note to clients Wednesday. "We now see optimism below the March 2009 low of 26.4 percent."
Fundstrat's Tom Lee met with investors in Boston on Monday and found the qualitative level of fear was even worse than what the sentiment stats implied.
"A surprising number see this as 1987 again and 1998. Most portfolio managers expected equities to fall below the August lows. Monday's mood was worsened by tumbling tape, but many talked about how this felt like 1987 to them," Lee wrote in the note to clients Wednesday.
The Dow Jones industrial average lost 23 percent on October 19, 1987, on a day that's become known as "Black Monday."
"Ultimately," Lee added, "investors question the ability of the world to grow without China. A recurring theme in the meetings is the skepticism, and therefore, pessimism about world growth with China slowing."
Here's why the dire negativity may present a buying opportunity.
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dce8925168c6acc989bd6967faae94d1 | https://www.cnbc.com/2015/09/30/the-consequences-of-claiming-social-security-too-early.html | Retire Well | Retire Well
VIDEO1:2501:25Claiming Social Security at this age can cost youRetire Well
After the stock market's recent volatility, many investors may be worried that a 10 percent "correction" or decline in their retirement portfolio will make it difficult — or impossible — for them to retire when they'd planned. But how many pre-retirees have considered the impact of having their guaranteed income stream in retirement potentially cut by as much as three times that amount? That's what could happen if you claim your Social Security benefits too early.
A decline in the stock market may reduce the balance in your retirement portfolio for a while, but you may have a chance to make up all or part of those losses over time as stock prices rise. However, if you take your Social Security benefits before your full retirement age that could reduce your monthly payment by as much as 30 percent for your entire life.
"The challenge is, every case is different, every individual has individual circumstances, but overall claiming Social Security too early at the age of 62 has compounding effects in the future," said Financial Planning Association President Edward Gjertsen.
So while it may be tempting to get your monthly Social Security payment as soon as possible, it's important to calculate how much you'd get, and what you'd give up, by claiming benefits early versus waiting a few more years.
A new survey shows 39 percent of consumers in their mid-40s, 50s and 60s expect Social Security benefits will make up at least half of their retirement income, according to the AARP and the Financial Planning Association.
If your monthly benefit is $1,000 and you start collecting Social Security at age 62 — the earliest age that you can claim it — it could increase by 20 to 35 percent if you wait to until your full retirement — age 66 or 67 — to collect benefits.
What happens if you wait to claim the benefits even later?
"If they could wait until they're 70, they can increase their Social Security benefits by 8 percent per year; it's a big number," said AARP President Jeannine English.
That's why financial planners suggest you consider several factors to maximize your benefits.
When you should file for Social Security benefits
First, tally up your other sources of retirement income, including 401(k)s and workplace retirement plans, IRAs and pensions.
Your employment status is critical, too. If you enjoy working and can work longer, waiting until your full retirement age or age 70 may significantly increase your earning, savings and Social Security benefits. But if you are unable to continue working, it may make sense to claim benefits before your full retirement age.
Consider your current health status as well as life expectancy. Again, if you are unable to work, due to health concerns, financial planners may suggest claiming benefits earlier. While it can be difficult to predict how long your Social Security benefits will need to last, you can gauge your potential life expectancy by using the calculator at www.livingto100.com.
Financial advisors also pay close attention to your marital status in making recommendations about when to claim Social Security. Spousal benefits provide an additional layer of financial security — as much as $100,000 or more in lifetime Social Security benefits depending on your situation, according to Financial Engines, which estimates married couples can have as many as 8,000 different strategies to choose from when it comes to when and how to collect their benefits. Benefits available to divorced or widowed spouses are also important factors to consider.
Financial planners often advise their clients not to worry so much about market fluctuations, but focus on these objective factors to ensure they are able to maximize their Social Security benefits, an important piece of their overall retirement income.
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753e07ef829c4a25c07dd36fe8f562fd | https://www.cnbc.com/2015/09/30/the-lingerie-brand-challenging-victorias-secret.html | The lingerie brand challenging Victoria's Secret | The lingerie brand challenging Victoria's Secret
VIDEO0:3600:36Victoria's Secret sizes up competitionIconic Tour
Starting a small business is intimidating enough. Add to the equation that you'll be competing against lingerie powerhouse Victoria's Secret — which accounts for a whopping 62 percent of the market — and it could be downright terrifying.
But Morgan Hermand-Waiche, a Harvard graduate who founded online start-up Adore Me four years ago, saw it as an opportunity.
Similar to the backstory of Victoria's Secret, which was dreamed up when founder Roy Raymond was out shopping for his wife, Hermand-Waiche first got the idea for Adore Me while searching for an anniversary present for his girlfriend.
He was struck by how expensive such a tiny garment could be, and how few sizes were offered. After speaking with his family, friends and professors, Hermand-Waiche realized that a lingerie brand built on the concept of inclusivity "could really become a business," he said.
Adore Me founder and CEO Morgan Hermand-Waiche.Adore Me
After raising $500,000 in funding while still on Havard's campus, his idea came to life.
"We really cover the full spectrum of sizes … [and] we're also inclusive through our price," Hermand-Waiche said. "We finally made high-quality lingerie affordable for everyone."
Less than five years later, Adore Me is ranked 14th on the Inc. 5000 list of the fastest-growing private companies, with a reported three-year growth rate of more than 15,000 percent and $16.1 million in revenue.
Designed by former Victoria's Secret Creative Chief Helen Mears, each of Adore Me's products are made exclusively for its website, with 30 to 40 new products launching each month. Bra sizes range from 30A to 44G, with bra and panty sets priced at $39.95 or $49.95. But its merchandise isn't limited to innerwear — Adore Me also sells sleepwear, corsets and swimwear.
Meet the man behind those sexy Halloween costumes
Because its product range is so extensive, the site encourages shoppers to answer a seven-question style quiz and relevant sizing questions, to create their customized style profile. By doing so, Adore Me is able to generate a customized "showroom" for each shopper, which learns a customer's preferences the more they browse and buy.
For frequent buyers, Adore Me also offers a VIP membership that gives shoppers a free bra and panty set every six orders, and $10 off each set. Members have to visit their personalized showroom between the 1st and 5th of each month to indicate whether they will make a purchase or pass; if they forget, they will be charged a $39.95 in the form of a store credit that can be used on future purchases.
This custom model has helped Adore Me not only attract but retain customers three and four years later, Hermand-Waiche said. It's managed to do so all the while fighting against Victoria's Secret's extensive marketing budget and economies of scale, which enable it to produce high-quality products at a moderate price.
IBISWorld analyst Britanny Carter said Adore Me's decision to operate exclusively on the web helped it level the playing field in terms of production costs. But running a brand online only also presents its challenges — including the all-important issue of fit.
"That's one of the reasons why Victoria's Secret is doing so well," Carter said. "You can go and try on the items in person."
How your buying behavior can predict your gender
Hermand-Waiche contends that Adore Me's free shipping and exchange policy gave shoppers confidence to purchase from the site when it was still in its infancy; now, he has customer reviews on his side. The brand has just a 6 percent return and exchange rate, carrying approximately 50 different sizes for each design.
That roughly 70 percent of its shoppers are millennials, who are used to buying apparel online, doesn't hurt; nor does the fact that Adore Me caters to a broader range of body types, thereby making it relevant to a larger consumer base.
Whereas the average woman's bra size over the past two decades has increased from 34B to 34DD, according to IBISWorld, Victoria's Secret only cover sizes 30A to 40DDD.
"We don't leave anyone on the side," Hermand-Waiche said.
Bras: The 'athleisure' trend's latest casualty
Having raised $11 million in funding to date, Adore Me is looking to expand beyond its digital-only roots through a partnership with a yet-to-be determined department store. Hermand-Waiche said that "every single department store is chasing us," and odds are "very high" that it will close a deal soon.
IBISWorld's Carter said such a partnership would be good for both parties. Whereas selling Adore Me products would help department stores connect with millennials — a group they are "really struggling" to target — it would also make it cheaper for Adore Me to enter bricks-and-mortar.
"The risks are much lower when you're partnering with an existing retail space," she said.
Hermand-Waiche also envisions a day when Adore Me opens its own stores. Meanwhile, he said, "It's been a fun ride."
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52d8d6d6310fa60afd691a1d25195f10 | https://www.cnbc.com/2015/09/30/the-third-quarter-by-the-numbers.html | The third quarter by the numbers | The third quarter by the numbers
VIDEO2:1602:16Cashin says: Miserable quarterWorld Economy
VIDEO2:4902:49Your 4th quarter playbook: 5 stocks to buyFast Money
VIDEO4:1004:10Your fourth quarter moveFast Money
VIDEO1:1401:14Powerful move at end of quarter encouraging: ProClosing Bell
The third quarter pummeled financial markets.
The quarter marked the worst for the three major indices since 2011; all three ended in the red.
Energy was the biggest loser this quarter with a record losing streak. The only positive sector: utilities. Biotechs also had their worst quarter since 2002.
Carl Icahn: I think markets are overpriced, earnings are misstated
Check out more stats below:
All major U.S. indices dropped into correction territory and all are currently in correction mode The following international markets are in correction mode: Switzerland, Italy, India, Canada, UK FTSE 100, France, STOXX Europe 600, Japan, and Spain The following international markets are in bear territory: Portugal, Germany, Argentina, Brazil, Hang Seng, Russia, Greece, China Shanghai, China Shenzhen The Dow closed the quarter with its best day since Sept. 15, but it's on pace for its third consecutive negative week. This is its longest weekly losing streak since its three-week streak ending June 5, 2015. The Dow is down 7.6 percent for Q3. This is its third consecutive negative quarter for the first time since 2009. The is down 7 percent for the quarter but did end Q3 with a positive day (its best since Sept. 8) The Nasdaq is down 7.4 percent for Q3 and ended its quarterly winning streak at 10 consecutive quarters (its first negative quarter in the last 11) The IBB closed the quarter with a bang, up 4.8 percent. Wednesday marked the end to its eight-day losing streak But the IBB is down 17.8 percent for the quarter, its worst since 2002 Gold is down 4.8 percent, its worst quarter since the Q3 2014. This is its fifth consecutive negative quarter for the first time since 1997. WTI Crude is down 24.2 percent for Q3, its worst quarter since the last one in 2014. The dollar index is up 0.8 percent for the quarter and has been positive for 4 out of the last 5 quarters
—CNBC's Christopher Hayes contributed to this report.
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6afbfa18adfddefa094be003f074b517 | https://www.cnbc.com/2015/09/30/traders-start-pricing-glencore-bonds-like-junk.html | Traders start pricing Glencore bonds like junk | Traders start pricing Glencore bonds like junk
Fabrice Coffrini | AFP| Getty Images
Traders have started to quote prices for Glencore debt in a manner normally associated with lower-quality paper, commonly known as junk bonds.
The shift in pricing dynamics in the private over-the-counter markets this week came as shares in Glencore swung wildly as investors worry about the ability of the miner and trading house to manage its debt pile in a commodity downturn.
The group retains an investment grade credit rating according to rating agencies and its $36 billion of outstanding bonds have up to now been bought and sold on the basis of their yield, which moves inversely to price.
But this week, dealers and investors say trading in the $36 billion of bonds outstanding has moved to a cash basis, where prices are quoted in terms of cents on the dollar of face value. This form of pricing is generally used for junk bonds, which have a higher risk of default.
Pressure on the company's debt and equity has intensified as analysts debate the effect of falling raw materials prices and rising debt costs.
VIDEO2:3002:30Glencore has $50B in financing: SourceFast Money
One investment bank warned on Monday that the group's equity might be worthless if commodity prices did not recover swiftly.
The company said it retained "strong lines of credit and access to funding".
Unsecured senior Glencore debt maturing in May 2016 traded below 93 cents on the dollar on Tuesday, with some trades occurring below 90 cents, according to investors.
A buyer of the debt should receive a 0.85 cent coupon in November, and a dollar of principal back in eight months' time. The return available from doing so is equivalent to around a 13 per cent yield on an annual basis.
More from the Financial Times:
Torrid quarter ends in broad stock rebound Glencore rallies but Hollywood declines option Analysts speak of 'boldest call' over Glencore
Prices for longer-term debt fell even further as investors began to assess the potential recovery values for Glencore debt, most of which is unsecured.
"Everything beyond five years is trading around or below 70 cents on the dollar," Zoso Davies, a credit strategist at Barclays, said.
Prices for investment grade debt are normally quoted on the basis of prospective income, either in terms of the spread over and above that available from government debt, or in terms of the yield available.
The yield on the Bloomberg European investment grade index is 1.35 per cent.
Trading in corporate bonds tends to be more cumbersome and infrequent than the stock market, where Glencore shares worth $20 billion were traded on Tuesday.
Investors and dealers estimated the volume of Glencore bonds changing hands on the same day to be measured in the hundreds of millions of dollars, rather than billions.
Read MoreGlencore shares financing details with investors
The company said: "Glencore has no debt covenants and continues to retain strong lines of credit and secure access to funding thanks to long-term relationships we have with the banks.
"We remain focused on running efficient, low-cost and safe operations, and are confident the medium and long-term fundamentals of the commodities we produce and market remain strong into the future."
In addition to its bonds, Glencore has more than $35 billion of loans outstanding.
One investor pointed to the company's more than 300 banking relationships, saying that the willingness of its bankers to continue extending credit lines to fund the trading business would determine the future of Glencore, and that so far, it appeared to retain their confidence.
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97f7e868b0fa4ed44fe5190e2f3b4e17 | https://www.cnbc.com/2015/09/30/treasurys-lose-some-of-their-shine-for-now.html | Treasurys lose some of their shine for now | Treasurys lose some of their shine for now
U.S. Treasury prices were mixed on Wednesday, as a recovery in global stock markets dented the appeal of safe haven bonds.
The yield on the benchmark 10-year Treasury notes was flat at 2.05 percent, having fallen to its lowest level in more than a month on Tuesday at about 2.05 percent. When a bond's price rises, the yield falls.
Treasurys
Yields on were also unchanged at 0.65 percent.
U.S. stocks rallied, with the Dow ending up more than 230 points.
Renewed appetite for risk appetites was hurting traditional safe-havens such as bonds for now, analysts said.
In terms of economic data, the September ADP Employment report showed private firms added 200,000 jobs in September, but August totals were revised down by 4,000.
The September Chicago purchasing managers index came in at 48.7, below the expects reading of 53.
Read MoreRocky stock market faces potential pitfalls into year-end
Federal Reserve Chair Janet Yellen did not comment on the U.S. economy or monetary policy in brief welcoming remarks to a community banking symposium on Wednesday. It was Yellen's first public appearance since a health scare last week in Massachusetts in which she stumbled over her words and struggled to complete a nearly hour-long speech.
"The most notable data from the U.S. today will be the release of the ADP employment figures for September, which, ahead of Friday's labour market report, are expected to suggest that private non-farm payrolls were up around 190k, the same ADP reading for August," analysts at Daiwa Capital Markets said in a note.
—Reuters contributed to this report.
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522807d210c1c7fc1de83687c05c0746 | https://www.cnbc.com/2015/09/30/trump-picks-a-new-fight-this-time-with-forbes.html | Trump picks a new fight, this time with Forbes | Trump picks a new fight, this time with Forbes
VIDEO1:2501:25Trump: Forbes doesn't understand my assetsWealth
Move over, Jeb Bush, Carly Fiorina and Fox News — Donald Trump has somebody else to argue with.
It's Forbes magazine and its new estimate that his net worth is just $4.5 billion, less than half Trump's claim of more than $10 billion.
"I'm a private company," he said in an interview at Trump Grill, the restaurant on the lower level of Trump Tower in midtown Manhattan. "I like the people at Forbes," he said, but added: "They don't really know my assets very well."
Donald Trump speaks with CNBC's John Harwood at the Trump Grill in New York.Adam Jeffery | CNBC
For example, he said, "they don't give you any value for brand, and my brand is very valuable." Just minutes after our interview, he noted, he was returning to his office to sign a new branding deal worth "hundreds of millions of dollars."
"I'm sure they said I'm very liquid," Trump said.
Actually, Forbes called Trump much less liquid than he claimed. His own estimate, the article reported, was $793 million in cash and cash equivalents. The Forbes estimate: $327 million.
If that's correct, the $100 million Trump has vowed to spend on his campaign would consume nearly one-third of his cash.
"They're wrong," Trump said when told those numbers. "I have a lot of cash. I have hundreds of millions of dollars of cash."
Moreover, Trump noted that the media coverage he's received so far has allowed him to lead the polls while avoiding heavy advertising spending and conserving cash. "I'm under budget and ahead of schedule, like my projects," he said.
Asked about Trump's complaint, Forbes Editor Randall Lane said: "Our story speaks for itself."
GOP's Christie on low polls: I need strong Iowa, NH
Fiorina: Trump is going to hear a lot from me
Ultimately, Trump suggested it doesn't matter that much whose estimate is right.
"I don't know. Whatever it is," Trump concluded. "Do you agree it's a lot?"
No argument there.
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b3962bda884395c18c8bf4f541e81bd1 | https://www.cnbc.com/2015/09/30/twitter-launches-buy-now-buttons-for-retailers.html | Twitter launches 'buy now' buttons for retailers | Twitter launches 'buy now' buttons for retailers
VIDEO0:2800:28TWTR offers 'Buy Now' buttonSocial Media
It's been about a year since Twitter launched tests of e-commerce, and now it's rolling out a "buy now" button system wide—so any U.S. retailer big or small can sell physical products, digital goods or services all within a tweet.
Twitter says this puts it on its way being the world's biggest social marketplace. Twitter is looking to make it easy for a wide range of retailers to come on board by integrating with all the major e-commerce platforms: Shopify, Bigcommerce and Demandware. Merchants can also list their products on Stripe Relay to share and sell products. (One big retailer that's on board is Best Buy, which will be selling its products on Twitter through Stripe.)
Twitter headquarters in San FranciscoAaron Durand | Twitter
Twitter hopes this will generate a new meaningful revenue stream as it struggles with stagnating user growth. The company will take a cut of many of the transactions as it hopes to drive ad dollars by helping retailers boost sales.
"We think of Twitter as the world's largest direct-to-consumer channel," Twitter's head of commerce Nathan Hubbard said. "We have been from the beginning working to try to make those conversations transactional while appropriate. Brands are building direct relationships with consumers and they're using platforms to build those direct relationships. What they don't always have is distribution."
Hubbard adds that demand for this kind of social commerce is huge: More than 50 million tweets a month say "I want" or "I need" something. Plus, over 100 million people follow a brand or a merchant on Twitter. Now, Hubbard predicts billions of dollars in e-commerce transactions will move into apps.
"The next big thing in mobile is 'buy' buttons. We're just at the beginning of transactional mobile commerce. It's clear to us consumers will be able to buy in the apps where they spend the most time," Hubbard said. "What's unique about Twitter is that it's where people already connect with the things that they love."
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ccca6c0e93e640b6060f54551983af50 | https://www.cnbc.com/2015/09/30/uber-execs-stand-trial-in-france-while-it-faces-a-crackdown-in-london.html | Uber’s storm in Europe: Court case to office raids | Uber’s storm in Europe: Court case to office raids
VIDEO0:3700:37Uber faces a tough road in EuropeBusiness Travel
It's set to be a pretty tough week for Uber in Europe.
The ride-hailing app's offices in Amsterdam were raided by the Dutch authorities, two of its top executives appeared in court in Paris on Tuesday and proposals that Uber is unhappy about were published on Wednesday by London's transport rule-setting body.
Here's a roundup of the storm the company – now worth $50 billion – is facing.
Dutch police raided Uber's office in Amsterdam on Tuesday as part of an ongoing criminal investigation, the public prosecutor said.
Uber has been accused of violating the country's taxi laws with its UberPOP service. The service allows untrained drivers and those without a taxi license to offer trips at a cheaper rate. It is different from Uber's regular service and was banned in the Netherlands in December.
The law banning UberPOP is under review and a new piece of legislation expected by the end of 2016.
Getty Images
In the meantime, Uber has decided to launch legal proceedings against the Dutch taxi law.
"Naturally we dispute the allegations, as the legal status of uberPOP continues to be debated in court and the underlying law is under legislative review," an Uber spokesperson said in a statement.
Uber has a short and troubled history in France. Two senior Uber executives were on trial on Wednesday in Paris on charges of "misleading commercial practices" and "complicity in the illegal exercise of the taxi profession."
Thibaud Simphal, head of the company's French operations, and Pierre-Dimitri Gore-Coty, Uber's general manager in western Europe, appeared in the Paris Correctional Court, but managed to get their case delayed until February 2016.
The trial relates to the company's UberPOP service. Earlier this year, Francois Hollande's Socialist government passed a law effectively banning UberPOP. The service was suspended and remains unavailable.
Uber's lawyers moved quickly at the start of the trial to call the whole case into question, arguing that the government had moved quickly to bring this case to court in order to appease taxi drivers.
Earlier in the year, cab drivers held violent protests in France to demonstrate against Uber. The case will now be pushed to next year after Uber requested access to all evidence in the trial.
Uber has gone on the front foot in London, petitioning users to sign against new rules proposed by the U.K. capital's transport authorities that could hit the service hard.
Transport for London (TfL)'s proposals include forcing drivers to work for only one cab company at a time and making it obligatory for taxi operators to allow users to pre-book up to seven days in advance. Also, the proposals include a rule that would create a mandatory five-minute wait time between ordering a cab and it arriving.
VIDEO3:3803:38The challenges and benefits of UberSquawk Box Europe
Uber currently does not offer an advanced booking service and many of its drivers work for several companies.
"If adopted, they (the rules) will mean an end to the Uber you know and love today," Uber wrote in an email to London-based users of its app. "And the proposed rules threaten drivers' livelihoods by forcing them to drive for just one operator. These rules make no sense."
Uber's low prices have caused a stir among London's black cab drivers who have held numerous protests in the capital causing big disruptions over the last few months.
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a6cbc685245ae22472dee9591edb7794 | https://www.cnbc.com/2015/09/30/us-quit-worrying-so-much-about-china.html | Jack Ma to US: Quit worrying so much about China | Jack Ma to US: Quit worrying so much about China
VIDEO0:3400:34China consumers feeling goodRetail
E-commerce billionaire Jack Ma thinks Americans should stop worrying so much about China, and worry more about their own country.
The founder and executive chairman of Alibaba said Tuesday that his country's savings rate and impending transition to a consumer-led economy mean China can weather a global slowdown. He suggested that China watchers usually get their prognostications wrong.
"You American people worry too much about the China economy," Ma said at the annual Clinton Global Initiative meeting. "Every time you think China is a problem, we get better, but when you have a high expectation for China, China is always a problem."
Jack Ma speaking at the 2015 CGI Annual Meeting in New York.Adam Jeffery | CNBC
Despite a much-discussed domestic slowdown, China has a quality that America doesn't, which could take its economy through tough times, the tech leader said.
"People say 'Well you know the economy's bad, so China consumption will be low.' No, totally different," Ma said. "You Americans love to spend tomorrow's money, and other people's money maybe. ... We Chinese love to save money."
Ma said Chinese consumers are among the world's biggest savers. In fact, the World Bank ranks China fourth among measured areas in terms of gross savings as a percent of GDP — with 50 percent in 2013, it sat behind Kuwait, Bermuda and China's own special administrative region of Macao.
Read MoreJack Ma thinks World War III will be a good thing
The United States, meanwhile, only had 2013 gross savings of about 18 percent of GDP — just less than Colombia, and just more than Namibia.
"We've been poor for so many years: When we made money we put it in the banks because someday we know that disaster is coming so we can spend the money," Ma said. "When the economy is bad, we still have the money to spend — you guys probably don't, you worry."
China's government has helped bolster the economy in recent years, but the driving force in a consumer economy will likely come from entrepreneurs, Ma said.
"China's government is so strong on investment, so strong on exporting, but they're too weak on domestic consumption," he said, adding that it's now the private sector's time to shine. "In the past 20 years, government is so strong, now they're getting weak: It's our opportunity, it's our showtime to see ... how we can develop real consumption here."
Read MoreLi: China transformation 'painful and treacherous'
Some market watchers have voiced concerns about Beijing's ability to navigate this economic transition, and if the fall of Chinese exports can be a soft landing for the nation.
For his part, Ma said he sees more of an upside to this economic transformation.
"When we export we have a terrible sky, we have terrible water, we have a terrible environment — when we start to import we're going to be better. So that's all a great opportunity, guys, be happy about that."
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96234bb1c48c9cf57f24afc6908e5249 | https://www.cnbc.com/2015/09/30/us-stocks-set-to-end-bad-quarter-on-strong-note.html | US stocks set to end bad quarter on strong note | US stocks set to end bad quarter on strong note
Wall Street shares were expected to open with solid gains on Wednesday, bolstered by a strong performance in Asian and European markets.
Dow Jones industrial average futures were more than 160 points higher, while European markets traded more than 2 percent higher. Asian stocks closed broadly higher, with Japan's Nikkei 225 stock index rallying 2.70 percent.
Oil traded mildly lower, while copper led most metals higher. Glencore continued to recover with a gain of more than 11 percent.
Read More Rocky stock market faces potential pitfalls into year-end
Still, after a quarter which has seen the S&P 500 tumble more than 8 percent, sentiment was expected to remain vulnerable to worries about China's slowing economy, a rout in commodity prices and uncertainty about the timing of U.S. interest rate hikes.
Getty Images
"Given the volatility seen in the past couple of months there is a feeling that something may have changed with the slow slide in commodity prices since the peaks of 2011, starting to sow some significant seeds of concern, about where the next catalyst for a move higher will come from," said Michael Hewson, chief market analyst at CMC Markets, in a note.
Analysts at Barclays said global stock markets were closing in on their worst quarter since 2011.
Treasury yields held higher, with the 10-year at 2.08 percent and the 2-year at 0.67 percent.
The U.S. dollar traded higher against major world currencies, with the euro below $1.12 and the yen at 120.17 yen against the greenback.
Ahead of Friday's key nonfarm payrolls data, the September ADP Employment report showed private companies added 200,000 jobs.
The September Chicago purchasing managers index is due at 9:45 a.m. ET.
Weekly mortgage applications fell 6.7 percent on a seasonally adjusted basis for the week ending September 25, according to the Mortgage Bankers Association (MBA).
U.S. Federal Reserve Chair Janet Yellen is expected to give the opening remarks at a Community Banking Research and Policy Conference at 3 p.m. ET in St. Louis, Missouri. Last week the Fed chief suggested that the central bank was still likely to lift interest rates before year-end.
St Louis Fed President James Bullard, New York Fed President Bill Dudley and Federal Reserve Governor Lael Brainard are also scheduled to speak later in the day.
Developments in Washington could fall under the spotlight since the Federal Government runs out of money at midnight – unless Congress and the President approve a new budget or a continuing resolution.
Failure to reach an agreement will result in a government shutdown.
Read MoreShut down looms as Congress is 'up in arms'
"The likelihood is that there will not be a government shutdown, which will bring relief," Colleen Graffy, Chairman, Society of English and American Lawyers told CNBC's "Squawk Box Europe" on Wednesday.
"But they do want to look at talks that would carry through over two years that prevent any discussion over the budget during this election cycle," she said.
Read More Early movers: RL, CHK, PLAY, CUDA, COST, LMT, JPM & more
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345ab7108888bb93f8bf226a0874cd10 | https://www.cnbc.com/2015/09/30/wall-st-rally-to-take-asia-stocks-higher-boj-tankan-china-pmi-eyed.html | Asian shares jump as US rally offsets weak data | Asian shares jump as US rally offsets weak data
Pedestrians walk in front of a share prices board showing the Nikkei 225 index at the Tokyo Stock Exchange in Tokyo, Japan.Kazuhiro Nogi | AFP | Getty Images
Asian equities kicked off the fourth quarter on a positive note on Thursday, as an overnight rally on Wall Street spurred risk appetite amid the release of key economic data from Asia's top two economies.
The Bank of Japan's quarterly tankan survey, released before the market open in Tokyo on Thursday, showed Japan's large manufacturers less optimistic than expected.
The large manufacturers' index for the September quarter stood at positive 12, compared with expectations in a Reuters poll for a positive 13. In the previous three months, the key large manufacturers' index came in at 15 – its highest level since March 2014.
For the December figures, the index was forecast at positive 10, in line with a Reuters poll.
"The BOJ [should be] pretty happy with these results. The deterioration in business sentiment was fully expected and it seems that the BOJ seems to have written off investor production and exports, at least in the near term so that's not the real surprise," HSBC's Japan economist Izumi Devalier told CNBC.
"I think they will focus more on the relatively strong non-manufacturing number which they think is more important for Japan's labor market developments, and the capex numbers [which] are very positive as well."
Read MoreJack Ma to US: Quit worrying so much about China
Investors also eyed the latest readings of China's mammoth manufacturing sector, which painted a deteriorating picture in the world's second-biggest economy that suggests the need for further stimulus.
The government's official manufacturing purchasing managers' index (PMI) ticked up to 49.8, beating expectations of 49.6 and compared with a reading of 49.7 in August. The final Caixin/Markit PMI, meanwhile, fell to a fresh six-and-a-half-year low of 47.2 in September, versus an earlier flash estimate of 47.
"The official PMI came in slightly better than expected... while not seeing a further decline was a positive in itself given the heightened state of negativity around China at [the] moment, there was good news in the sub-sector breakdown," IG's market analyst Angus Nicholson wrote in a note issued late Thursday.
"The most important subsectors both improved: output rose to 52.3 from 51.7 and new orders rose to 50.2 from 49.7. These numbers do seem to be indicating that the declining activity numbers in China may have hit a floor as the effect of monetary easing and stepped-up fiscal spending start to be felt," the Melbourne-based analyst added.
Chinese markets will not have an immediate chance to react to the data barrage as they are closed for the week-long National Day holiday starting from today.
Overnight on Wall Street, the tech-heavy Nasdaq Composite led gains with a jump of 2.3 percent, while the and the S&P 500 closed up 15 and 1.9 percent respectively, following a rally in global markets.
Nikkei bounces 1.9%
Japan's Nikkei 225 index continued its up-climb after leaping 2.7 percent in the previous session, but came off slightly from the day's highs in the final minutes of trading.
Heavyweight components were among the best performers; industrial robot maker Fanuc climbed 3.9 percent, while SoftBank and Fast Retailing charged up 2.8 and 1.7 percent respectively.
Banking shares also gained ground, with Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group widening gains to 4.3 and 3.6 percent respectively. Brokerage firms also reversed a dismal start; Nomura Holdings and Daiwa Securities rose 2.4 and 3 percent respectively.
A tick-up in dollar-yen on the back of risk-on sentiment, delivered firepower to the export-oriented names. Nissan Motor was the biggest winner among automakers, up 5.1 percent, while Nikon jumped 4.2 percent.
Sony continued to attract hefty buy orders after Goldman Sachs initiated a 'buy' rating for the stock with a price target of 4,200 yen on Wednesday. Its shares closed up 3.4 percent late Thursday.
Scandal-ridden Toshiba gained 2.2 percent after its shareholders approved the new line up at the 11-member board late Wednesday. The tech giant was also given a lifeline by securing $3.3 billion from its main banks.
VIDEO1:4101:41BOJ will be 'pretty happy' with Tankan survey: HSBCSquawk Box Asia
ASX rises 1.8%
Australia's index headed further up north, brushing off the release of mixed factory activity data from its biggest trading partner, China.
Market bellwether BHP Billiton jumped 2.1 percent, mirroring the rise in its U.S. ADRs, as commodity prices bounced back. The energy sector got a lift from firmer crude oil prices in Asian trade; Santos, Woodside Petroleum and Oil Search advanced between 2.1 and 4.8 percent.
Oz Minerals leaped 19.6 percent to a three-month peak on the back of news that U.S. private equity giant KKR & Co bought a 10 percent stake in the copper miner.
Shares of Australia and New Zealand Banking (ANZ) elevated 1.6 percent after the lender announced that Shayne Elliott will replace Mike Smith as chief executive officer from January 2016. Elliott currently serves as ANZ's chief financial officer.
Other major lenders rose between 1.9 and 2.1 percent, underpinning strength in the Sydney bourse.
Read MoreAustralia to trial shark deterrent technologies
Kospi gains 0.8%
South Korea's Kospi index climbed up to its highest level since September 22 after export data shrunk smaller than expected.
Exports fell 8.3 percent to $43.5 billion won from a year earlier, data from the Ministry of Trade, Industries and Energy showed early Thursday, above economists' forecasts in a Reuters poll for a 10 percent fall and compared with a shocking 14.9 percent slump in August. Imports declined 21.8 percent.
Imports plunged 21.8 percent on-year to $34.6 billion won last month, data showed, wider than August's 18.3 percent decrease and the market forecast for a 18.1 percent drop.
Meanwhile, the Nikkei/Markit PMI rose to 49.2 on a seasonally adjusted basis from 47.9 in August, signalling that the country's manufacturing sector may be on course for a recovery. The PMI reading is the highest since March.
Among gainers, Hyundai Motor and Posco gained 2.5 and 1.5 percent respectively, while Naver jumped 6.4 percent to its highest in three months as investors bet on improved earnings in the third quarter.
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88a3b65b7daef89036dc75c14623788c | https://www.cnbc.com/2015/09/30/wall-street-still-sees-opportunity-in-one-bric-india.html | Wall Street still sees opportunity in one 'BRIC': India | Wall Street still sees opportunity in one 'BRIC': India
VIDEO1:1901:19India: The last standing BRICPower Lunch
Investors on Wall Street still seem to like one of the big emerging global markets — with a caveat or two.
India is the last standing "BRIC" — the term coined to refer to the once-rising national powerhouses of Brazil, Russia, India and China. Buying into the group has become an increasingly dangerous proposition in the last year, with lower commodity prices, a stronger U.S. dollar and general market volatility hurting all four.
But looked at individually, the economy in India would appear to have advantages over the other three. Brazil is dealing with heightened political uncertainty, high inflation and low growth. China continues to disappoint on the economic front despite a series of measures unveiled by the People's Bank of China to stimulate growth. And Russia is suffering from a drop in oil prices as well as Western sanctions designed to punish its military adventurism in Ukraine.
India's central bank cuts key rate by 50 BPs to 6.75%
India has its own set of challenges, but it's remained a compelling investor story to many, especially since its economy is expanding as its inflation declines — a combination seen as ideal by many emerging market investors. The country's central bank this week cut interest rates to a 4 1/2-year low.
"India is the best of the BRIC's to invest in," said Nandini Ramakrishnan, global market strategist at J.P. Morgan Asset Management.
At the U.S.-India Business Council leadership summit in Washington last week, Sunil Mittal, group CEO of New Dehli-based conglomerate Bharti Enterprises and an Indian billionaire, made the same point, saying that economic data point to India as the performer among the large, rising countries.
Goldman Sachs is very bullish on India, forecasting its economic growth to rise to 8 percent during the period fiscal year 2016-20, compared with 7 percent in fiscal 2012-15. "In a faster reform scenario, India's potential growth could rise to 9 percent due to reforms to labor, infrastructure and education," wrote Goldman's Andrew Tilton in a research note to clients.
Weaker productivity growth hits global economy: WEF
IMF's Lagarde: More volatility likely for emerging markets
India's central bank cuts key rate by 50 BPs to 6.75%
But that story is well known, and according to UBS, India has become a crowded trade. "Everyone loves India," said Geoff Dennis, head of Global Emerging Market Strategy at UBS.
While India has held up better than the other emerging markets, it pulled back significantly over the summer. Two India-focused exchange-traded funds, the Wisdomtree India Earnings and MSCI India Price Return, are down almost 10 percent and more than 8 percent in the last three months, respectively.
"No, not too late to buy Indian equities," said Ramakrishnan, "but selectivity is increasingly crucial."
The country's upcoming earnings season will also be important in figuring out which companies an investor should get exposure to, said another analyst.
Valuations alone could deter investors. UBS notes that the Indian stock market is not cheap, trading at 17 times forward earnings, versus its long-term average of 14.4 times.
Workers prepare reinforcing steel at the construction site of the Majestic metro station in Bengaluru, India.Sanjit Das | Bloomberg | Getty Images
There are also a growing number of skeptics who are questioning Indian government GDP revisions that put India on track to outpace China in 2015. India Finance Minister Arun Jaitley reassured investors in a recent interview with CNBC, saying those numbers are "very credible."
Prime Minister Narendra Modi played a big role in drawing foreign investors into India in 2014, but he's also seen as one of the reasons market participants have become increasingly cautious in 2015.
"What story is Modi trying to convey by traveling around the world and not spending time in India tackling the issues that he said he would?" said an Indian health-care CEO asked not to be identified.
That view is held by many market watchers within India, many of whom are waiting anxiously for reforms unveiled in the national budget to feed through into the real economy. Discontent among locals in India could hurt Modi's party in an upcoming election this fall in Bihar, a key geographical region.
Modi's defenders say his plan is a long-term story that will take years to play out.
"The reform program of Prime Minister Modi may be being slowed by political constraints; however, it is ongoing and will continue to progress, and we expect a solid pickup in GDP growth to 7.5 percent next fiscal year which will be the best growth performance in emerging markets," said Dennis of UBS.
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c6da3cbe93341a5d87966f40c201ec45 | https://www.cnbc.com/2015/09/30/why-stocks-wont-recover-for-positive-2015-blitzer.html | Why stocks won't recover for positive 2015: Blitzer | Why stocks won't recover for positive 2015: Blitzer
VIDEO3:4503:45Carl Icahn's afraid... should you be?Squawk Box
The late summer tailspin for the stock market has created enough concern among investors that even Santa Claus probably won't be able to save 2015 from ending the year lower, economist David Blitzer said Wednesday, the final day of the third quarter.
"You're going to need some really big catalyst to get going, and I think there's still too much anxiety," Blitzer told CNBC as the Dow Jones industrial average, the and the Nasdaq composite struggle in correction territory, measured by a decline of 10 percent or more from recent record highs.
Wall Street did open strongly higher Wednesday, as investors wondered whether equities might test their most recent lows on Aug. 25, when the market plunged on heightened concerns about China and global growth.
Read More
Billionaire investor Carl Icahn, in a self-produced new video called "Danger Ahead," expressed concerns this week about stocks, saying the market could go down "a lot more" as investors come to grips with bubbles exacerbated by the Federal Reserve's near-zero percent interest rate policy.
Blitzer, chairman of the S&P Dow Jones index committee, told CNBC's "Squawk Box" he's not as concerned about stocks as Icahn is, but said he's a "little worried."
Read More 5 things that keep Carl Icahn up at night
"The thing to be really concerned about is debt levels. Yes, some of that comes from low interest rates," Blitzer said, referring to soaring government and increasing consumer-debt levels.
He said the tech boom of the late 1990s and bust in early the 2000s caused only a mild recession because debt levels were not that high. "Most of it was in the stock market where you can't borrow more than half the value on margin."
But the run-up to the 2008 financial crisis and the Great Recession that followed was exacerbated by crushingly high debt. "It was all on houses, people buying houses with no money down, which was 100 percent leverage, and that was really severely damaging," he said.
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3b8bcb76b1c8000c3ee77e6e8d953796 | https://www.cnbc.com/2015/09/30/your-first-look-for-thursday-october-1.html | VIDEO1:3101:31Final Trade: Hilton, Gap, Chevron, & moreFast Money
The "Fast Money" traders gave their final thoughts of the day.
Pete Najarian was a buyer of HLT.
David Seaburg was a buyer of GPS.
Brian Kelly was watching CVX.
Guy Adami was keeping his eye on the IBB.
Trader disclosure: On Wednesday, September 30, 2015 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS, FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls AA, ABX, BMY, COP, DAL, EEM, FL, HLT, MPEL, PFE, SWFT, UAL, XLF, XOM, ZIOP, he is long puts DISH, FCX, X. Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. Brian Kelly is long BBRY, GLD, Bitcoin, US Dollar, Crude Oil; he is short Yuan, British Pound, Euro, Yen, EEM, EWC, EWU, EWG, SPY, S&P 500 Futures. Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.
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2b281d4ef5e4ec1de170d1f43f357b28 | https://www.cnbc.com/2015/10/01/asian-hedge-fund-growth-hit-by-talent-shortage-institutional-money-japan.html | Why Asia’s hedge fund growth lags so badly | Why Asia’s hedge fund growth lags so badly
Daniel Acker | Bloomberg | Getty Images
The hedge fund industry in much of the world managed a solid recovery from the global financial crisis, with assets under management rising, but in Asia growth has stalled.
The difference is stark. In North America, hedge fund assets at the end of 2007, as the financial crisis was beginning, were about $1.19 trillion and after declining during the crisis, had risen to about $1.49 trillion by the end of August this year, according to data from Eurekahedge.
In Europe, the recovery was less dramatic, with assets rising from $464.3 billion at the end of 2007 to about $517 billion at the end of August, the data show.
Read More In the hedge fund world, bigger is still better
But in Asia, including Japan, assets fell from $176 billion at 2007's end to $168.9 billion by the end of August - that's including $2.3 billion worth of performance-based growth and $5.3 billion worth of inflows, the data show. Asia contributes less than 8 percent to the global pool of assets under management.
Hedge fund managers see several reasons the region's hedge fund growth is lagging.
"The comparison between building a hedge fund in Asia and elsewhere is absolutely there's no difference," noted Nick Taylor, founder and chief investment officer at Hong Kong-based Senrigan Capital, at the Milken Institute's Asia Summit last month. "It's the ingredients you have to do it in the place you're doing it. In the U.S., there's an enormously deep bench of talent … That's less true in Europe and it's even less true in Asia." Senrigan declined to provide its assets under management.
Taylor is not the only one who sees difficulty in building a hedge-fund team in the region.
"Those with true hedge fund management experience, as in those that are strategic, you can number them on your hands. There are virtually none. And certainly none that are available," added Adam Levinson, chief executive at Singapore-based Graticule Asset Management Asia, which has around $4 billion in assets.
Another factor hindering Asian hedge fund growth is that it's just too far away from the big money, managers said.
"When you look at the vast pools of institutional capital, North America is dominant," Levinson said at the conference, noting that large portions of the money many hedge funds manage comes from U.S. pensions, endowments and state funds. "Proximity matters and it makes it more difficult to raise money from those institutions."
Read More Small hedge funds aren't as great as they say
A home-grown problem also dogs industry growth in Asia: Competition from the region's sovereign wealth funds.
"There is some amount of crowding out, because they manage in-house, which is why the bulk of us have our investors largely from the U.S.," Danny Yong, chief investment officer at Dymon Asia Capital, which has around $4.5 billion in assets, said at the conference. Asia is home to some of the world's biggest wealth funds, including Singapore's GIC and Malaysia's Khazanah Nasional.
Those funds don't just manage their own money rather than investing in hedge funds, and increase competition in a limited fund-management talent pool , they may also chase similar deals and investment strategies as regional hedge funds.
There is also competition from Japan Inc. for hedge funds wishing to buy large stakes in companies. Japanese corporates are seemingly on the hunt for deals, with returns at home appearing set to remain low as the country's efforts to break out of decades of deflation stumble. That means the bar for deal returns may be low for Japan's companies.
For example, Japan Tobacco bought the Natural American Spirit brand from Reynold's American for $5 billion last month; the deal sent the Japanese company's shares sharply lower, with analysts saying it may have overpaid. That's similar to Japan Post's $5.1 billion acquisition of Toll Holdings in February, which was priced at a 50 percent premium to the Australian company's share price before the offer.
Indeed, part of the reason hedge fund assets in Asia have declined is due to the industry contracting in Japan. The country's hedge funds had around $16.9 billion in assets at the end of August, down from $23.6 billion at the end of 2007, Eurekahedge data show.
Japan's hedge funds lost momentum from 2007-2009 as their below-average performance, especially compared with Asia ex-Japan funds, spurred around $18.7 billion in withdrawals, Mohammad Hassan, an analyst at Eurekahedge, said via email. But he noted that fund flows had flowed back into Japan long-only funds since 2012 in a "one-way bet on Abenomics," or Prime Minister Shinzo Abe's plan to kickstart Japan's long-moribund economy.
To be sure, some of Asia's hedge fund stagnation could be because lower-quality funds have been squeezed out.
"When investors first came out to Asia to look for hedge funds, I feel that the requirements, especially on the infrastructure front, weren't as stringent. In some ways, Asia hedge funds were given a hall pass," on factors including operations, compliance and risk management, Yong said. "Today, post-global financial crisis and post-Madoff, investors are no longer that forgiving."
He was referring to Bernie Madoff, who was convicted of running the largest Ponzi scheme in U.S. history after his investment fund, in operation since the mid-1970s and falsely claiming to manage as much as $65 billion in client funds after fictionalizing returns, collapsed under the weight of withdrawal requests during the crisis.
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221d11198a68996892f121c9e2df057b | https://www.cnbc.com/2015/10/01/at-least-10-dead-in-community-college-shooting-in-oregon-nbc-affiliate.html | Obama denounces Oregon shooting, urges gun policy | Obama denounces Oregon shooting, urges gun policy
VIDEO1:3101:317-10 dead in Oregon shooting: NBC News Catastrophe
A gunman opened fire on Thursday at an Oregon community college, killing 13 people in an act of violence strongly condemned by President Barack Obama.
Thirteen people were killed in the incident at Umpqua Community College and about 20 others were wounded, according to Oregon Attorney General Ellen Rosenblum.
The shooter — a 20-year-old man — died after exchanging gunfire with law enforcement, officials said. It was not immediately clear if he was included in the number of deceased Rosenblum provided.
Oregon Gov. Kate Brown said in a statement that it is "still too early to know all of the facts," but stressed the state's top priority is treating injured victims and securing the campus. Authorities did not immediately give any details on a motive but said they were investigating.
In a somber press conference, Obama expressed both support for the victims and incredulity that Americans continue to die in mass shootings. He renewed his call for stronger gun controls to help stem the violence.
"Somehow, this has become routine. The reporting is routine. My response here at this podium ends up being routine," he said in a prepared statement. "We've become numb to this."
Opponents, many of which are members of the Republican-controlled Congress, however, strongly oppose new measures. They argue gun control legislation does little to prevent incidents of violence.
A patient is wheeled into the emergency room at Mercy Medical Center in Roseburg, Ore., following a deadly shooting at Umpqua Community College, in Roseburg, Thursday, Oct. 1, 2015.Aaron Yost | Roseburg News-Review | AP
Obama said that federal officials that traveled to the scene Thursday would help "as long as they need." As he has in the wake of past mass shootings, Obama also urged lawmakers to act to make guns tougher to access in the United States to prevent future shootings.
"Our thoughts and prayers are not enough. It does not capture the heartache and grief and anger that we feel. And it does not prevent this carnage from being inflicted someplace else in America," Obama said.
Police first received a call about an active shooter in a classroom just after 10:30 a.m. local time. Authorities evacuated the area and advised people nearby to avoid the campus, which sits about a three-hour drive from Portland.
"We locked our door, and I went out to lock up the restrooms and could hear four shots from the front of campus," UCC Foundation Executive Director Dennis O'Neill told the Roseburg News-Review, a newspaper in nearby Roseburg.
Helicopters were dispatched to fly victims for treatment. At least 12 people were taken to Mercy Medical Center in Roseburg.
The Douglas County Sheriff's Office said in a Facebook post that students and faculty were being taken to a nearby fairground. The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives were sending officials to the scene.
Shooting reported at Umqua Community College in Roseburg, Oregon on Oct. 1, 2015.Source: Google Maps
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Umpqua is a two-year school with roughly 3,300 full-time students and 16,000 part-time students.
Obama said he has received criticism in the past for making political statements after mass shootings. However, he called it "something we should politicize."
Gun laws remain a highly-debated issue in Congress, and many efforts to craft tougher rules have hit roadblocks in recent years. He called for a "change of politics" on guns.
This story is developing. Please check back for further updates.
— NBC News and The Associated Press contributed to this report
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bbf6324282cf8b11121997bd2e9a3f11 | https://www.cnbc.com/2015/10/01/bond-investors-get-set-for-new-quarter.html | Bonds flat as investors gear up for US jobs report | Bonds flat as investors gear up for US jobs report
Traders in the 10-year bond options pit at the Chicago Board of Trade signal orders.Frank Polich | Reuters
U.S. Treasurys were unchanged on Thursday after traders bought U.S. government debt on caution ahead of a key U.S. jobs report, while concerns weighed about the prospect of an interest rate increase by the Federal Reserve.
Traders and analysts are awaiting the U.S. Labor Department's September U.S. non-farm payrolls report, which will be released at 8:30 a.m. (1230 GMT) on Friday. Economists expect the report to show that employers added 203,000 jobs in September, according to a Reuters poll.
"Everyone is making sure they are squared away because if the report is good, it'll keep December on the table for a rate hike, but if it's not, it will push the move into next year," said Stanley Sun, interest rate strategist at Nomura Securities International in New York.
Treasurys
The yield on the benchmark 10-year Treasury note were flat at 2.039 percent, after hitting a session low of 2.00 percent, it's weakest since August 24. The yield on the 30-year Treasury bond was down 1 basis point at 2.84 percent, near a session low.
Yields on U.S. Treasurys maturing between 3 to 30 years hit their lowest levels in over five weeks, with benchmark 10-year yields hitting a session low of 2.009 percent.
Through much of the week, traders fled to Treasuries on concerns about global growth and a selloff in commodities.
Analysts have said the report will be crucial to the central bank's decision on when to increase interest rates for the first time in nearly a decade, after its policy-setting group, the Federal Open Market Committee (FOMC), decided against raising rates in September, citing concerns about global risks and volatility.
Since the meeting, several top Fed policymakers including Chair Janet Yellen have said the central bank could raise rates by the end of the year if the economy continues to improve. Analysts said the jobs report would be a key indication of the health of the economy.
On Wall Street, the benchmark S&P 500 stock index was last down 0.4 percent.
Correction: This story has been updated to reflect that it was ISM manufacturing data that was released.
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578d4e7d111139aca452993eef4771f2 | https://www.cnbc.com/2015/10/01/cnbc-digital-video-exclusive-donald-trump-sits-down-with-cnbcs-chief-washington-correspondent-john-harwood.html | CNBC Digital Video Exclusive: Donald Trump Sits Down with CNBC’s Chief Washington Correspondent John Harwood | CNBC Digital Video Exclusive: Donald Trump Sits Down with CNBC’s Chief Washington Correspondent John Harwood
WHEN: Today, Thursday, October 1
WHERE: CNBC.com's Speakeasy with John Harwood: http://www.cnbc.com/2015/10/01/trump-should-he-fall-behind-well-im-not-a-masochist.html
Donald J. Trump. Long a flamboyant figure in American life — as a real-estate developer and reality show host — Trump, 69, entered the race in June in unorthodox fashion. At a moment when Republican leaders hoped to repair relations with Latino voters, he seized on the issue of illegal immigration, accused those crossing the border from Mexico of "bringing drugs ... bringing crime. They're rapists." That hot-button issue with conservative voters grew hotter within weeks when an illegal immigrant was charged with the killing of a young San Franciscan named Kate Steinle. Three months later, Trump leads all rivals for the Republican nomination nationally and in key early states of Iowa, New Hampshire and South Carolina. He has pledged to spend as much as $100 million of his multibillion dollar fortune on his campaign, freeing him of the need to solicit campaign donations. This week he laid out a bold — critics say budget-busting — plan to cut the top personal income tax rate to 25 percent and business tax rate to 15 percent. But now his campaign faces stiffer challenges from two sources — the rise of fellow political outsiders Ben Carson and Carly Fiorina, and more serious scrutiny from Republican primary voters as the choice of the party's eventual nominee draws closer. Trump sat down to discuss his campaign with me in Trump Grill, the restaurant in the lower level of Trump Tower in midtown Manhattan.
A partial transcript from Speakeasy with John Harwood featuring Donald Trump follows. All references must be sourced to CNBC.com:
JOHN HARWOOD: Your answer to policy questions is, "I'm Trump. I'm good. I'm the best. I will get it done."
DONALD TRUMP: Well there is a little truth to that.
HARWOOD: Well, you've been very successful –
TRUMP: In fact, I think there is actually a lot of truth to that.
HARWOOD: But we don't have Superman presidents.
TRUMP: No, but we will if you have Trump. You watch.
HARWOOD: Let's assume you get elected. And you get in and you discover that all of these problems you are talking about are much more difficult. What do you say to those people who vote for you who say, "hey wait a minute, I thought you were the Wizard of Oz."
TRUMP: I'm a problem solver. I will not disappoint those people. I will not find that. I know how to solve problems.
HARWOOD: You made the argument that the reason that average people in America are feeling economic strain is because their leaders are stupid.
TRUMP: Well, their leaders are incompetent. In some cases, stupid. What is happening now where we allow China to devalue their currency constantly, where we allow Japan to devalue. You know, they just did a big devaluation. Where we allow Mexico to really take so many of our companies. What they are doing is very smart, but very bad for our country.
HARWOOD: When you started in the campaign, some of the things that you were talking about were not real. Obama, where was he born. That's not real. We know where he was born.
TRUMP: You tell me. Go ahead, tell me. Where was he born?
HARWOOD: I believe he was born in Hawaii.
TRUMP: I don't discuss the birther thing anymore. And you know the reason I don't discuss it? Because when I discuss it, you don't want to get onto jobs and the other things. So, I just don't discuss it anymore. People find the subject so interesting that we would spend a whole half hour talking about that. So, I never discuss it.
HARWOOD: On immigration, rates of illegal immigration have been declining, not going up.
TRUMP: They go up and they go down. A lot of people are better off staying, frankly John, in Mexico and various other countries than coming here because we're doing very poorly as a country.
HARWOOD: You know that we are not going to deport 11 million people.
TRUMP: Well, we will see what happens. Last week, a woman was brutally murdered – a veteran, 66-year-old veteran murdered, raped, sodomized –
HARWOOD: Is that the evidence that you are talking about?
TRUMP: No, no, no. But there is many cases like that. It has become a tremendous crime wave.
HARWOOD: Have you seen "The Jinx"?
TRUMP: I know the family, yes.
HARWOOD: Great. That is not evidence that real estate developers are –
TRUMP: No, it's not.
HARWOOD: In a crime wave.
TRUMP: And by the way, and I don't say everybody, or even a big percentage, but it is a substantial percentage and it is tremendous crime.
HARWOOD: What would you say to someone who said that the core idea of your campaign is appealing to fearful, anxious, white Americans and encouraging the belief that their problems are because of people who look different than them and have different features than them?
TRUMP: No, I don't think so. You know, my audiences are very – many, many blacks. I had a poll come out the other day where I was 25% approval rating from the blacks as a Republican, which is the highest they have ever recorded. Usually, it's about 7%. In fact, they said if the election were held and you got 25% of the black vote, like in this poll, the election is over. You win.
HARWOOD: You don't think racial tension is the jet fuel of your campaign?
TRUMP: I don't think so. I don't want it to be and I don't think it is.
HARWOOD: If you face the prospect of losing primaries, would you decide that – and you are not winning anymore – would you decide to step away at that point?
TRUMP: Well, I'm not a masochist, ok? Right now I'm leading every poll and in most cases big. And I'm leading Iowa, I'm leading New Hampshire, I'm leading South Carolina, I'm leading everything. That's good. If that changed, if I was like some of these people at 1% and 2%, there's no reason to continue forward. Now if I tank, you know, sure. I go back to the business. Why wouldn't I?
HARWOOD: Thanks so much for doing this. Appreciate it.
TRUMP: Thank you. Great honor. Thank you.
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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ab8bc33826f1a046784f1149da7e6f5f | https://www.cnbc.com/2015/10/01/cnbc-exclusive-cnbc-excerpts-cnbcs-sara-eisen-speaks-with-world-bank-group-president-jim-yong-kim-on-cnbcs-squawk-alley-today.html | CNBC Exclusive: CNBC Excerpts: CNBC’s Sara Eisen Speaks with World Bank Group President Jim Yong Kim on CNBC’s “Squawk Alley” Today | CNBC Exclusive: CNBC Excerpts: CNBC’s Sara Eisen Speaks with World Bank Group President Jim Yong Kim on CNBC’s “Squawk Alley” Today
WHEN: Today, Thursday, October 1st
WHERE: CNBC's "Squawk Alley"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with World Bank Group President Jim Yong Kim and CNBC's Sara Eisen on CNBC's "Squawk Alley" (M-F, 11AM-12PM ET) today. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000427939.
All references must be sourced to CNBC.
KIM ON EMERGING MARKETS OUTLOOK
You know, there's a lot of headwinds. I mean, there's no question that growth is going to be slower for emerging markets. You know, a big part of it is the fact that commodity prices are down and they continue to be down. And a lot of that has to do with the slowing growth rate in China. Also, there's a lot of anticipation about eventually the Fed fund rate will be raised and interest rates will go up overall and it will be harder for emerging markets to get access to capital.
KIM ON FED RATE HIKE
If you look at how these things work, at the g20 finance minister's meeting, Stan Fischer said you have to remember we're going from absurdly low rates to incredibly low rates. But that's not the reality for emerging markets. What happens is that temperaments change, people move quickly, and we think there could be serious negative effects for all the emerging markets.
KIM ON OIL AND GAS DROP
Any of the oil and gas producers are already in a terrible situation. I mean, it looks like to us that the price will be down for a long time. And when and if Iran comes on line, we expect that the price of oil and gas will go down another $10 a barrel. So this is really a serious issue for those oil and gas exporters.
KIM ON CHINA
When you change your growth model from investments and exports to one that's more focused on consumption and services, that's a huge shift. And so when you shift so dramatically something as fundamental as your growth model you're going to see these ups and downs. We're not at all surprised that growth is now at 7%. What's important for the Chinese is this is the kind of growth that is more sustainable. That sort of in many ways more under their control and of a higher quality that they think they can sustain for the long run. They're on this path. They've maintained it. They've continued to make reforms.
KIM ON REFUGEE CRISIS
On the one hand, I think there's a lot of very interesting discussion about shouldn't we be open to refugees. Economically, for countries, advanced economies that have a quickly expanding elderly population, that have a shrinking work force, that have a very low birth rate, bringing in refugees –
Sara Eisen: In the long run
Kim: In the long run – well, even in the medium and short run. You know, Turkey, of the new businesses started in Turkey, 26% last year were started by Syrians. The areas where Syrians have settle are growing faster than the areas where Syrians have not settled. So there can be even short term economic benefits.
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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b002f6620bfa663403fbd66bd7de0984 | https://www.cnbc.com/2015/10/01/conagra-cuts-1500-jobs-moving-hq-from-omaha-to-chicago.html | ConAgra cuts 1,500 jobs; moving HQ from Omaha to Chicago | ConAgra cuts 1,500 jobs; moving HQ from Omaha to Chicago
ConAgra FoodsDaniel Acker | Bloomberg | Getty Images
ConAgra is cutting about 1,500 jobs, or approximately 30 percent of its global, office-based workforce, and moving its headquarters to Chicago from Omaha, Nebraska.
The company said the job cuts exclude plant positions and do not include any impact from the planned sale of its private label operations. It anticipates about $345 million in one-time charges over the next two to three years related to the restructuring.
ConAgra Foods said Thursday that its plans should result in about $200 million in cost savings, with most of that realized in fiscal 2018. The company said the savings are in addition to approximately $150 million in cost cuts over the last two years.
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df65879d53bbc8acfbfac900fce6e1b0 | https://www.cnbc.com/2015/10/01/does-the-market-have-a-big-apple-problem.html | Does the market have a big Apple problem? | Does the market have a big Apple problem?
VIDEO3:3803:38Is the market losing Apple?Trading Nation
Apple shares have performed miserably in the past week, falling nearly 5 percent even as stocks as a whole are essentially flat. And if Apple continues to lose ground, key indices could be in trouble.
Apple makes up about 4 percent of both the and Dow Jones industrial average, and some 13 percent of the Nasdaq 100. That means that investors who hold the popular (SPY), (DIA) or (QQQ) ETF may incidentally have oversize positions in the tech giant.
Due to its heavy weighting, Apple's weakness "is a problem right now for the market, and there's really no way to get around it," Larry McDonald of Societe Generale said Thursday on CNBC's "Trading Nation."
Read More How to make 7 times your money in Apple: Goldman
Oppenheimer head of technical analysis Ari Wald agrees that Apple "can continue to pressure the market as a whole," particularly as shares look to stay weak for some time.
"The stock has broken below its 200-day moving average, and that moving average slopes lower," Wald said Thursday.
"It reminds me a lot of what we saw in 2012, where it broke down and people were trying to buy it all the way down, and it wasn't until price stabilized and a lot of the moving averages started to come around again" that the stock worked its way higher.
"We're really nowhere near that," Wald said. "And until then, we see big downside risk down to $95," or 13 percent below current levels.
Read More Mystery: Why is Apple having such a bad week?
But even if that happens, the overall market isn't necessarily doomed.
"Ninety-six and a half percent of the S&P is not Apple," Wald added optimistically.
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3c48da681759107d108820f597971930 | https://www.cnbc.com/2015/10/01/dollar-treads-water-vs-euro-yen-as-focus-turns-to-us-jobs-data.html | Dollar slumps after US jobs report disappoints | Dollar slumps after US jobs report disappoints
Getty Images
The dollar slumped on Friday, stung by a September U.S. jobs report depicting slower hiring, which raised doubts the economy was strong enough for the Federal Reserve to raise U.S. interest rates this year as had been widely anticipated.
Losses for the dollar against the euro and topped 1 percent, and the dollar index was 0.66 percent after touching a low last seen on Sept. 24.
The common currency last traded up 0.16 percent at $1.1208.
Payrolls outside of farming rose by 142,000 last month and August figures were revised sharply lower to show only 136,000 jobs added in August, the Labor Department said on Friday. Economists had expected employers to have added 203,000 jobs in September, according to a Reuters poll.
The data marked the smallest two-month gain in employment in over a year and could fuel fears that a China-led global economic slowdown may sap America's strength.
VIDEO4:0104:01Behind the rise in dollar-yenStreet Signs Asia
"This is a weak report that will probably push back the timing of the Fed rate hike to 2016," said Vassili Serebriakov, currency strategist at BNP Paribas, New York. "The dollar will suffer the most against the yen in the short term, although not really against commodity currencies because I would imagine this data would be negative for risk sentiment."
Read MoreNegative again: Euro zone inflation dips
The dollar fell sharply two weeks ago after the Fed once again kept rates at historic lows. But the currency had gained around 2.5 percent through Friday, as Fed Chair Janet Yellen and other U.S. policymakers kept alive the prospect later this year of a rate rise, which would be the first in nearly a decade.
The dollar on Friday hit a three-week low against the yen below 119 yen but was last 0.15 percent at 120.03 yen. Against the Swiss franc, the dollar was off 0.49 percent.
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e61ee95ab6d3e1a47e544bcec35fc887 | https://www.cnbc.com/2015/10/01/dont-look-down-this-bridge-has-a-glass-bottom.html | Don't look down: This bridge has a glass bottom | Don't look down: This bridge has a glass bottom
VIDEO0:5800:58Would you cross China's glass bridge?Squawk Box
Stretching almost a quarter of a mile across a nearly 600-foot deep chasm in China's Hunan province, is the Haohan Qiao bridge.
Initially a wooden bridge, the attraction nestled in the Zhangjiajie Grand Canyon area has been retrofitted with a glass bottom.
The stomach-churning structure, which opened in September of this year, was constructed using 24 millimeter thick glass panels. These panes are reportedly 25 times stronger than regular glass, according to The Washington Post.
The bridge was built by a crew of 21 workers, who purportedly earned 400 yuan ($62.90) per day for their efforts.
"It's actually not as dangerous as people think it is, as long as you watch out a bit," one worker told Global Times.
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ebbbabb009c86824556c64c9a0a051aa | https://www.cnbc.com/2015/10/01/early-movers-mkc-cag-gps-googl-msft-wmt-noc-more.html | Early movers: MKC, CAG, GPS, GOOGL, MSFT, WMT, NOC & more | Early movers: MKC, CAG, GPS, GOOGL, MSFT, WMT, NOC & more
A trader works on the floor of the New York Stock Exchange.Adam Jeffery | CNBC
Check out which companies are making headlines before the bell:
McCormick — The spice maker earned an adjusted 85 cents per share for its latest quarter, 2 cents short of estimates, though revenue beat forecasts. McCormick's results have been hurt by the strong dollar, and it predicted that fiscal 2015 sales growth would be cut by five percentage points as a result.
ConAgra — The food producer announced a $300 million restructuring plan which will eliminate about 1,500 jobs. ConAgra also said it would relocate its headquarters to Chicago from its current home in Omaha, Nebraska.
Gap — Standard & Poor's cut its outlook for the apparel retailer to negative due to the departure of Stefan Larsson as president of its Old Navy unit. Larsson has been named Chief Executive Officer of Ralph Lauren.
Microsoft, Google — The two companies have dismissed all outstanding patent disputes between them, and agreed to collaborate on "certain patent matters." There had been about 20 patent cases outstanding between the two.
Verisk Analytics — The provider of risk information to insurance companies and other industries will replace Joy Global in the S&P 500 after the close of trading on October 7. Joy will replace Thoratec Corporation in the S&P MidCap 400 following its acquisition by St. Jude Medical.
Diamond Foods — The snack maker will try to sell itself in pieces after failing to find a buyer for the entire company, according to the New York Post.
Wal-Mart — Wal-Mart will cut hundreds of jobs at is Arkansas headquarters in an effort to cut costs, according to multiple reports.
Northrop Grumman — The defense contractor won a $3.2 billion Air Force contract for development and maintenance of drones.
Deere — Deere reached a tentative agreement with the United Auto Workers on a six-year contract. The prior agreement between the union and the heavy equipment maker expired Thursday.
Fiat Chrysler — The automaker's workers have rejected a proposed four-year deal with the UAW, despite endorsement from union leaders. The exact final tally was not released.
Macerich — Macerich is forming two joint ventures that will hold eight of the mall owner's properties. The transactions will give Macerich about $2.3 billion in cash, which it will use to fund a special dividend, stock repurchases, and debt repayment.
General Electric — GE struck deals to sell two of its railroad services operations. Wells Fargo is the buyer of the railcar leasing business, while Marmon Holdings will buy GE's tank car fleet and repair facilities. Terms of the two deals were not disclosed.
United Parcel Service — The delivery service is investing in tech startup Ally Commerce, which sets up websites for direct sales to consumers.
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aefad0de7bacd22415bfd63d05ea1ee3 | https://www.cnbc.com/2015/10/01/emerging-markets-to-post-first-negative-year-of-net-capital-flows-since-1988.html | Is this the mother of all warnings on EMs? | Is this the mother of all warnings on EMs?
VIDEO4:3704:37What's driving panic in EMs? Not the Fed: ProSquawk Box Asia
VIDEO4:4204:42How are EMs faring?Street Signs Asia
VIDEO4:4504:45Market panic over-amplified China jitters: UBSSquawk Box Asia
The last time emerging markets had it nearly this bad, Ronald Reagan was the U.S. President, KKR purchased RJR Nabisco, and a future popstar named Rihanna was born.
Net capital flows for global emerging markets will be negative in 2015, the first time that has happened since 1988, the Institute of International Finance (IIF) said in its latest report. Net outflows for the year are projected at $541 billion, driven by a sustained slowdown in EM growth and uncertainty about China, it added.
In other words, investors will pull out more money out of emerging markets than they will pump in.
The data come on the heels of a separate IIF report this week that showed portfolio capital outflows in EMs amounted to $40 billion during the third quarter, the worst performance since 2008.
Indeed, relief from the Federal Reserve's decision to delay its first interest rate hike in a decade has proved to be short-lived for EMs amid fresh evidence of a slowing Chinese economy, precipitous currency declines, a sustained slide in commodity prices, and political uncertainty in countries such as Brazil and Turkey.
Covering a group of 30 economies, the IIF report estimates net non-resident inflows at $548 billion for 2015 from $1,074 billion last year—levels not seen since the global financial crisis.
Read More Strategist: Don't touch emerging markets just yet
"As a share of gross domestic product (GDP), non-resident inflows have fallen to about 2 percent from a record high of almost 8 percent in 2007."
The situation is exacerbated by the fact that investors residing in emerging market countries are buying more foreign assets. Known as resident outward investment flows, 2015's reading is expected to hit a historical high of $1,089 billion, which is likely to further pressurize reserves, exchange rates and asset prices of EMs, the IIF said.
"On a net basis, lower inflows and rising outflows imply that private capital is leaving EMs for the first time since the early 1980s."
So, which region is the weakest? No surprises here.
"It is noteworthy that a large part of the decline in overall flows this year is attributable to flows out of China, which intensified after the People's Bank of China announced a mini-devaluation of the renminbi and a shift to a more market-oriented exchange rate fixing regime in August."
China Photos | Getty Images
The high level of non-financial corporate debt as a share of GDP is a major, underlying reason for sustained pressure on EM asset prices, pointed out Hung Tran, executive managing director at the IIF.
"As monetary policy continues to diverge and the Fed begins liftoff, countries with large amounts of corporate debt, especially in USD, will face difficulties, with rising prospects for corporate distress, weakening capital investment and growth."
Read MoreIndia or Indonesia: Which economy is more competitive?
The IMF also signaled out corporate debt as an area of caution in its Global Financial Stability report this week. Emerging market firms now boast a record $18 trillion of debt, with the largest increases in leverage in highly vulnerable sectors, such as construction, mining and oil, the IMF said.
The fact that aggregate emerging market equity indices have lost almost a quarter of their value since reaching highs in late-April have led investors to ask whether this is the beginning of another EM crisis, Vontobel Asset Management said in a report this week.
The IIF staunchly disagrees, however. While data may be reminiscent of the 2008 crisis, the factors are fundamentally different, with the IIF likening this year's episode to "a lengthening drought" rather than a crisis event.
"Unlike the 2008 crisis, the reasons are largely internal rather than external - related to rising concerns about economic prospects and policies in China, coupled with broader uncertainties about EM growth prospects," noted Charles Collyns, managing director and chief economist at the IIF.
In contrast, the 2008 collapse in capital flows was due to a deep recession in mature economies that spilled over rapidly to emerging markets.
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4f315ad060453ac85ba3f97db97354bf | https://www.cnbc.com/2015/10/01/emissions-scandal-volkswagen-could-recall-120000-vehicles-in-skorea.html | Volkswagen could recall 120,000 vehicles in S.Korea, says govt | Volkswagen could recall 120,000 vehicles in S.Korea, says govt
VIDEO0:3300:33VW recalls hit South KoreaProduct Recalls
South Korea said on Thursday Volkswagen's South Korean unit informed the government it could recall around 120,000 vehicles in South Korea.
The government will decide by November what measures it will order the unit to do, including a recall and/or a suspension of sales, if it deems there were illegal acts, the country's environmental ministry said.
Read MoreVolkswagen: Political maneuvers behind the wheel?
After testing the emissions of seven Volkswagen and Audi diesel models by mid-November, the ministry will expand testing to other makers' diesel models starting December.
Volkswagen said earlier this week it would tell customers in the coming days they would need to refit up to 11 million vehicles affected by the scandal and present details to watchdog in October.
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87697b48cec32073b7774775c899b518 | https://www.cnbc.com/2015/10/01/european-markets.html | Europe ends mixed; Tullow Oil soars; Altice sinks | Europe ends mixed; Tullow Oil soars; Altice sinks
VIDEO1:0501:05Europe ends mixed; Tullow oil soars, Telecoms sink
European stocks closed mixed to lower on Thursday, as start-of-quarter enthusiasm petered out among investors and telecom stocks weighed on investor sentiment.
The pan-European STOXX 600 dipped, closing around 0.4 percent down.
London's FTSE 100 index managed to eke out gains, finishing 0.2 percent up, while its counterparts, the French CAC and German DAX slipped into the red, closing around 0.7 percent and 1.6 percent lower respectively.
U.S. stocks traded mostly lower, as investors weighed declines in Apple and biotech stocks amid key domestic economic reports.
In Asia, activity in China's manufacturing sector contracted for a second straight month in September, an official purchasing manager's index (PMI) showed on Thursday, suggesting the need for further stimulus.
Tullow Oil closed up 9.6 percent after the London-listed firm said that its credit facilities remain unchanged following an asset assessment. The company said that it demonstrates the continued support of its lending banks during this period of low oil prices.
The auto sector was again in focus on Thursday. Italy's Fiat Chrysler closed up 2.2 percent as reports of a planned public listing of Ferrari helped boost the stock. France's Renault also closed up 1.3 percent. Embattled Volkswagen finished down 1.3 percent.
German potash firm K+S rose, closing up 3.4 percent amid speculation that Canada's Potash Corp could sweeten its offer to buy the company.
However, Altice shares closed 9.3 percent lower, after the Dutch telecoms firm said it had launched a capital hike worth around 1.8 billion euros ($2.01 billion) to help finance its takeover of Cablevision.
Consequently, other telecoms were hit, including Deutsche Telekom and Telecom Italia, which both fell over 4 percent.
In data news, Spain's September manufacturing purchasing managers' index (PMI) fell to a 21-month low, coming in at 51.7 versus August's figure of 53.2.
Overall, euro zone manufacturing growth slipped last month. Markit's final PMI was 52.0 in September after coming in at 52.3 in August.
VIDEO3:1303:13Oil’s playbook for Q4 2015Worldwide Exchange
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8dc1236923622826dcb2ee2b7383aa22 | https://www.cnbc.com/2015/10/01/evernote-announces-layoffs-and-office-closures-.html | Evernote announces layoffs and office closures | Evernote announces layoffs and office closures
Tim McClean Photography | E+ | Getty Images
Notetaking app Evernote announced on Wednesday the layoff of 47 employees, as well as the closure of three of its global offices. The news came in a note from CEO Chris O'Neill posted on the Evernote website.
"We are grateful for the immense contributions of each and every affected person," he wrote. "I believe that a smaller, more focused team today will set us up for growth and expansion tomorrow."
O'Neill has led the company as CEO for two months. The privately-held company, based in California and founded in 2007, has about 400 employees. The company claims it reaches more than 100 million users worldwide.
VIDEO2:0902:09September job cuts up 43%Squawk Box
"Here are two things that you can expect from us over the next several months: we will launch major foundational product improvements around the core features that you care about most, and we will pull back on initiatives that fail to support our mission," he said.
The Evernote app allows users to take notes, and then organize and archive them. It offers a free and paid subscription service.
The announcement from Evernote is one of several from other companies in September including Hewlett-Packard, ConocoPhillips and Chesapeake Energy.
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e172c20d89b3c4fc68cac74e5666610f | https://www.cnbc.com/2015/10/01/facebook-lets-you-put-videos-as-your-profile-picture.html | Facebook lets you put videos as your profile picture | Facebook lets you put videos as your profile picture
VIDEO0:3400:34FB adds video option for profile pictureSocial Media
Facebook is letting users upload super-short videos to be their profile pictures, as the social networking site refreshes its design and pushes to become the center of your online life.
The Silicon Valley giant will let users film a short looping video that can be uploaded to the space which usually features a profile picture.
"On News Feed and profiles, we're seeing people create and view more videos than ever before," Facebook product managers, Aigerim Shorman and Tony Hsieh, wrote in a blog post on Wednesday. "Profile videos will let show a part of yourself you couldn't before, and add a new dimension to your profile."
Facebook is tapping into the booming popularity of video on its site, after it rolled out autoplay videos earlier this year in a bid to draw in more advertising bucks.
Its latest Facebook's update also follows a similar move by ephemeral messaging app Snapchat in July. Its rival has been growing very quickly and is often seen as a attracting a younger audience than Facebook. In July, it launched its own moving profile image.
Moving profile pictures are just one part of Facebook's overall refresh. The social media company has also introduced a feature that will let you set a temporary profile picture that will revert back to your previous image at a specified time. Facebook said users could opt for this in order to show support for favorite sports team ahead of a game, or to commemorate special occasions.
Facebook
Users can also customize their profile to showcase personal information at the top, such as education and work history. Plus, a "featured photos" section allows users to pin their favorite snaps near the top of their page.
Facebook has also made some design changes to its mobile app, putting the profile pictures in the center rather than aligned to the left.
These tweaks are seen as a bid for the social media site to reinforce itself as the center of users' online identity and make them spend more time using the site
"It's all about encouraging people to make more connections and spend more time and that translates into advertising," Ian Maude, head of internet at Enders Analysis, told CNBC by phone.
"The downside it might feel a little intrusive and you might not want all that information pinned upfront."
The new features are being tested with a "small number" of iPhone users in the U.K. and California and will be rolled out to more people soon, Facebook said.
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af40fc2701d64a91895f9ff038030958 | https://www.cnbc.com/2015/10/01/fiat-chrysler-sales-jump-14-pct-amid-big-sector-expectations.html | US auto sales total 18.17M in Sept; highest since July 2005 | US auto sales total 18.17M in Sept; highest since July 2005
VIDEO3:4903:49US auto sales power up to decade-high in September
Monthly U.S. auto sales came in at their best in more than a decade as cheap gasoline and ultra-low interest rates drove demand for sport utility vehicles and pickup trucks, according to Autodata.
The U.S. auto industry powered ahead in September to 18.17 million in total sales, logging its best run rate July 2005.
The big three U.S. automakers—General Motors, Ford Motor, and the U.S. operations of Fiat Chrysler Automobiles—reported a jump in September sales on Thursday.
Strong demand for new cars and light trucks in the United States has been giving automakers a boost at a time when sales in China and other markets are slowing.
Read MoreDespite scandal, VW sales surge past estimates
Sales also got a boost from the calendar, with the entire Labor Day weekend falling in September for the first time since 2012.
GM, the largest U.S. automaker, said its total sales in September rose 12 percent to 251,310 vehicles compared with the same month last year.
VIDEO2:1002:10Labor Day drives strong auto sales
"The U.S. is adding jobs, disposable income is rising, energy prices and interest rates remain low and business continues to invest, but the fact remains this has been a slow recovery," said Mustafa Mohatarem, GM's chief economist.
"The economy still has room to grow and so do auto sales, particularly now that the millennials are entering the workforce and starting households," he added.
Ford's total sales rose 23 percent to 221,599. Ford-brand SUV sales increased 27 percent, the best in 12 years, while trucks sales increased 23.2 percent.
Read MoreVolkswagen scandal creates brisk resale activity online
Fiat Chrysler's sales increased 14 percent to 193,019, boosted by the continued strength of its Jeep SUV brand. Jeep sales jumped 40 percent.
"On the back of a strong sales industry we were able to achieve our best September sales in 15 years and our 66th-consecutive month of year-over-year sales growth," said Reid Bigland, head of the company's U.S. sales.
While low gas prices seem likely to continue to help sales of SUVs and pickups such as the Chevrolet Silverado and Ford F-150, the days of near-zero interest rates look set to end as the Federal Reserve considers raising rates for the first time since 2006. Strong auto sales could help hasten that decision.
Edmunds.com has forecast a rise in sales for all major automakers except Germany's Volkswagen AG, which reports sales later in the day.
The world's biggest carmaker by sales faces up to $18 billion in penalties to go along with a severely dented reputation after admitted to U.S. regulators that it programmed its cars to cheat on emission tests.
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fb779e29b70baa901055dcb313a2caf9 | https://www.cnbc.com/2015/10/01/gateway-proposal-assault-on-thai-government-websites-symbolic-minister-says.html | Assault on Thai government websites 'symbolic', minister says | Assault on Thai government websites 'symbolic', minister says
Getty Images
Thailand on Thursday played down a coordinated attack on several government websites, with the technology minister pledging that a controversial plan for a single internet gateway would not disrupt social media and business communications.
Thailand's military government has shown a zero-tolerance approach to dissent and has banned protests since a coup in May last year. The gateway proposal has fueled fears of a clampdown on free speech.
At least seven websites connected to the government were forced offline late on Wednesday in a protest organized on social media website Facebook against the plan to channel internet content through one gateway, from about 10 now.
VIDEO0:5800:58China & US find common ground on cybersecurityClosing Bell
The protest was a "symbolic act", and not an attack, said Information and Communication Technology Minister Uttama Savanayana.
"It may come from certain groups with their view or concerns related to the single gateway," he told reporters, stressing that the single gateway was still just an idea.
"At the moment the feasibility studies have yet to reach any conclusion."
Websites forced offline included those of the government, the armed forces, the defense ministry and the military's internal security agency.
The single gateway proposal has triggered concern that social media and business communications could be monitored. The protest urged internet users to go to the government websites and overload them by refreshing the page repeatedly.
"We invite fellow gamers to show we don't want a single gateway, so that the Thai government will listen to our problems," one Facebook group posted in an appeal that has drawn more than 120,000 "likes".
Read MoreThai police declare Bangkok bomb case solved; doubts remain
Draconian Thai cyber legislation has existed since 2007 and is often used to police websites and stamp out criticism of the country's revered monarchy, which is protected by strict lese-majeste laws being strongly enforced by the junta.
Thousands of websites have been blocked in recent years, coinciding with a decade-long political conflict in which social media and the Internet play a crucial role. Thailand has 35 million internet users among its 67 million people.
Experts say the single gateway would let authorities screen and filter content more easily, but risked slowing internet speed and disrupting business.
Uttama said there would be no interference with social media and business communications, adding that Prime Minister Prayuth Chan-ocha, who led the coup, was concerned about inappropriate internet use.
Prayuth had asked government agencies to "find measures to take appropriate care and raise the youth of the nation to learn, use and access technology in the most beneficial way," he said.
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1fa94d0b9e1f0229a574520ec50aedfb | https://www.cnbc.com/2015/10/01/globe-newswire-highwinds-triples-cdn-capacity-names-rich-day-president.html | Highwinds Triples CDN Capacity, Names Rich Day President | Highwinds Triples CDN Capacity, Names Rich Day President
NEW YORK, Oct. 1, 2015 (GLOBE NEWSWIRE) -- Highwinds® today announced the promotion of Rich Day to president. Since joining Highwinds in 2010 as chief architect, Day has been at the center of the company's technological innovation and new product development as well as the significant global growth of Highwinds CDN (content delivery network).
"Rich has a brilliant technological mind, but if you look at his career before joining us in 2010, and all that he's accomplished here in the past five years, you'll see that he was as much chief customer advocate as he was chief architect. We share the belief that technology and service should never be mutually exclusive – and that's why this new role suits him," said Steve Miller, founder and CEO of Highwinds. "Rich will now serve at the helm of all technical and customer-facing teams, who together are tasked with continuing to operate one of the largest edge compute and caching networks in the world, the highest-performing CDN, and the industry's best customer service."
Day has long been recognized as an innovator and luminary in the content delivery space. In 1999, he co-founded Speedera Networks and served as its chief architect until its acquisition by Akamai in 2005. Following the acquisition, he stayed on at Akamai for several years to oversee customer transitions. Day is credited with some of the industry's earliest CDN advances and is named as an inventor on 48 CDN-related patents.
As Highwinds' chief architect, Day led the technical teams that engineered the global network to scale rapidly and handle explosive growth. His teams have optimized CDN performance, added new PoPs (points of presence) and further boosted network capacity to maintain substantial headroom. Over the past seven quarters, Highwinds increased network capacity by 300 percent. The company is in the process of doubling capacity once again, to be completed by April 2016. In addition to capacity augmentation, Highwinds' engineering and operations teams have successfully deployed a global fleet refresh of the network's fifth-generation hardware architecture, including the latest in solid state drive technology, enhanced global security features, and an expanded selection of premium network peers around the world.
Day has also been instrumental in the development and advancement of Highwinds' product suite. In the last two years alone, he has led the teams that created StrikeTracker® 3.0, the latest release of Highwinds' award-winning CDN management portal, as well as the new EveryStream™ media tool chain and Highwinds Cloud Storage™ platform.
"I'm honored to be given this opportunity to lead our talented teams with direction, focus and passion, but our ongoing success is not about me. It's the result of an experienced management team working together toward common goals. It's also the result of our people taking products that are already great and making them even better, inventing new solutions that provide immense value to customers, and continually raising the bar on customer service," said Rich Day, president of Highwinds.
Steve Miller, Rich Day and other Highwinds executives will be available for meetings in New York during the New York Media Festival, which runs Oct. 6-9, and O'Reilly Velocity, which runs Oct. 12-14. To request a meeting, please visit www.highwinds.com/en/company/events.
All trademarks are the property of their respective owners.
CONTACT: Media Contact: Deborah E. Hamilton 303.682.9439 deborah@mediamondeinc.com
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137db3a5c7e1fce5cb2c572de4bb8085 | https://www.cnbc.com/2015/10/01/gm-says-on-target-to-save-55-billion-in-next-three-years-in-efficiencies.html | GM says on target to save $5.5 billion in next three years in efficiencies | GM says on target to save $5.5 billion in next three years in efficiencies
VIDEO0:2900:29GM looking for efficiency savingsBusiness Strategy
General Motors said on Thursday it will save about $5.5 billion in the next three years in efficiencies in manufacturing, administration and purchasing, which will pay for investments in technology and brand development.
The savings through 2018 will "more than offset" the technology and brand investments, GM said at an annual presentation of its plans for investors.
Some $2 billion of the savings will be on materials GM uses for its vehicles, said Mark Reuss, the company's global product chief.
General Motors CEO Mary BarraGetty Images
GM Chief Executive Mary Barra said the company will develop its autonomous vehicle program by having its employees at its Warren Technical Center in Warren, Michigan drive a fleet of plug-in hybrid 2017 Chevrolet Volts.
"We will redefine customers and their personal mobility," said Barra.
Barra spoke with Reuters about this effort earlier this week.
She said this effort "starts with connectivity" that will be used to advance its autonomous vehicles. It will also include an electric bicycle that the company expects to be sold in densely populated global cities.
Barra said GM executives will update investors on its plans in China and India later on Thursday.
GM plans for 39 percent of its global sales to come from new or refreshed vehicles, up from 26 percent this year. Further, it said that the share of those new vehicles will be 40 percent of its total sales in 2017, 31 percent in 2018, and 40 percent in both 2019 and 2020.
GM said it would increase its earnings per share, but did not give specifics. The company's share prices has recently fallen below $30 per share and has been trading below its $33 IPO price.
Barra said she has not had any further contact with Fiat Chrysler Automobiles. Several months ago, Fiat Chrysler CEO Sergio
Marchionne sent Barra an email saying he wanted the two companies to merge, a notion Barra has consistently said she and the company's board of directors are not interested in.
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64f238fb99c9884bf53b2b987dd1f5eb | https://www.cnbc.com/2015/10/01/heres-what-we-need-for-an-october-bottom.html | Trader Talk | Trader Talk
Traders work on the floor of the New York Stock Exchange.Getty Images
You've heard this many times: October is traditionally the month where stocks bottom.
There is some truth to this. The Stock Trader's Almanac calls October the "bear killer" because it has turned the tide in 12 post-World War II bear markets: 1946, 1957, 1960, 1962, 1966, 1974, 1987, 1990, 1998, 2001, 2002, and 2011.
The "worst six months of the year" trend also ends in October.
Still, these are not normal times and anyone who relies on seasonality exclusively is courting trouble.
What do we need for a bottom?
1) China: Growth stability. We don't even need more stimulus. Just growth stability.
2) Oil stabilization. Oil has become a proxy for global growth and so stocks and oil often trade in tandem.
3) Fed: Clarity on rates. Time to make a choice: Hike or no hike. I've argued that a single hike followed by strong guidance that the "glide path" will be very long would be better than the netherworld we are occupying. Fed Chair Janet Yellen made an important clarification last week by saying she did not think concerns on the global economy would be enough to impact their thinking on rates.
4) Dollar stability, which will be difficult if the Fed hikes.
5) Continued job growth and, more importantly, wage growth.
You can argue that a few other things should happen: The bond rally should end, but not too abruptly. A deal should be reached soon to avoid a December shutdown of the government.
This is a pretty broad wish list. Still, we don't necessarily need all of these things to happen for stocks to end the year higher. We certainly need at least need a few, however. Right now, we are seeing job growth, and modest stability in the dollar and oil, but the dollar and oil still have a tentative feel to them. We don't have the conditions for a bottom yet.
Would anything else help stocks? Here's something: Surprisingly positive comments from corporations. It's possible. I noted Wednesday that only 76 companies have provided earnings guidance below consensus, the lowest number since second-quarter 2012.
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a639f0c941c5e10753473a31a39c0d5c | https://www.cnbc.com/2015/10/01/high-hanwoo-price-boosts-skorea-beef-imports-australia-benefits.html | Beef imports soar as Koreans turn away from Hanwoo | Beef imports soar as Koreans turn away from Hanwoo
An employee arranges meat at an E-Mart Co. store, a subsidiary of Shinsegae Co., in Seoul, South Korea.SeongJoon Cho | Bloomberg | Getty Images
Soaring South Korean beef prices should be welcome news for its hard-pressed cattle farmers, but a failure to rebuild herds and customers balking at paying record levels for prized local "Hanwoo" meat mean imports are set to keep pouring in.
Overseas purchases by the world's sixth-biggest buyer are at four-year highs and a further rise is expected in 2016 - mainly benefiting Australia - as South Koreans' loyalty towards local beef is tested by prices climbing 35 percent in eight months.
Native bred Hanwoo cattle are often pampered by their farmers and South Koreans consider the meat top class, at least akin to Japan's globally recognised Wagyu beef. While locals have been prepared to pay more for Hanwoo, their willingness to shell out extra may have reached a tipping point now.
"Hanwoo is the food we cannot skip on special days like holidays and rituals for ancestors, but on a regular basis my husband and I eat imported beef as Hanwoo is so expensive," said Park Hee-jung, a 62-year-old housewife, who was shopping at a department store in Seoul.
Local beef ribs currently fetch 4,912 Korean won ($4.13) per 100 grams, almost triple the price of Australian ribs, data from Korea Agro-Fisheries & Food Trade Corp shows.
And according to a survey by Korea Rural Economic Institute, this is much higher than the 1.67 times more South Koreans are prepared to pay over the price of Australian ribs.
"It's a tough time to sell," said cattle farmer Min Jae-ki, who also runs a butcher's restaurant in Hongseong, 150 kilometres (93 miles) southwest of Seoul. "We are charging the same as before although beef prices have gone up. Otherwise customers won't come."
VIDEO1:4501:45End to beef’s bull run?
Min said the cost of supplying beef to his restaurant, where customers can barbecue meat after selecting it, had increased by 1 million won per cattle from a year ago. Margins have been squeezed further after beef prices rose to a record of 6.9 million won per 600 kg in August.
Pedigree is important
The price of Hanwoo beef is likely to rise further as cattle numbers dropped 14 percent over two years to 2.66 million this March with many small farmers forced out of business after a prolonged slump in prices since 2010.
Herds have also been decimated by outbreaks of foot-and-mouth disease and it will be difficult to rebuild them quickly with calves now fetching a record price of 3.5 million won.
"If you are buying calves you first have to punch a calculator to see how much you can earn," said Yoo Kwan-jo, a 57-year-old farmer raising 650 cattle in Hongseong.
Almost all of the beef cattle population in South Korea is Hanwoo and breeding it requires attention to pedigree. The Korea Animal Improvement Association is the only organization approved by the state to register and evaluate pure-bred Hanwoo cattle.
Farmer Yoo said he includes corn and rye grown on the farm in the feed he gives to his cattle and even pipes music into the sheds in a bid to help stimulate healthy growth.
Read MoreYour ground beef contains…what?!
"As parents provide good food to help their kids grow pretty and well, we treat the cow in the same way," said Yoo, who used to individually massage cows when he had a smaller herd, but now uses a comb machine to brush and pat their backs.
Higher imports from Australia seen
With fewer Hanwoo cattle and higher prices, South Korean beef imports have risen. Purchases from Australia rose 11 percent in the first eight months of 2015 to over 113,000 tonnes, data shows. Total imports were at 200,000 tonnes, up 4 percent on year or the highest since January-August in 2011.
"High prices for domestic beef will boost imports further next year," said Lee Hyung-woo, a research associate at the Korea Rural Economic Institute.
Australian beef will likely be the winner with lower tariffs under a free trade agreement also helping.
In Australia, the world's No.3 beef exporter, farmers are slaughtering at a near-record pace as a drought worsened by an El Nino weather pattern scorches pastures.
"Korea has been a very strong and stable market for us over the last three or four years ... Australia is on track to send about 150,000 tonnes beef to South Korea this year," said Ben Thomas, manager of market information at industry body Meat and Livestock Australia in Sydney.
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852de8faf88b127938b57bf51bf16175 | https://www.cnbc.com/2015/10/01/hurricane-joaquin-develops-into-category-4-storm.html | Hurricane Joaquin develops into Category 4 storm | Hurricane Joaquin develops into Category 4 storm
VIDEO1:3101:31Hurricane Joaquin now category 4Power Lunch
The National Weather Service has upgraded Hurricane Joaquin to a Category 4 storm that is "extremely dangerous."
The storm has already sustained winds from 131 mph to 151 mph. Forecasters expect the storm to stay offshore of the Eastern U.S., but there will still be coastal flooding and very heavy rains all the way up the seaboard.
The storm however is expected to weaken as it moves along the Eastern coast. Forecasters expect Joaquin will reach eastern Long Island sometime early next week, perhaps Monday night into Tuesday.
New Jersey Gov. Chris Christie announced a state of emergency ahead of Hurricane Joaquin, which is expected to start impacting the state with heavy rainfall on Friday.
Christie tweet
It was packing 130 mph winds as it battered the central Bahamas, moving about 6 mph as of 2 p.m. ET
"We are not quite sure if this is going to be a single punch or a double punch," New Jersey Gov. Chris Christie told reporters Thursday.
But no matter which way Joaquin heads, an area of low pressure in the Southeast and a front stalled over the East Coast will pull moisture from the Atlantic Ocean, causing rain Thursday through at least Saturday, said Bruce Terry, lead forecaster for the government's Weather Prediction Center. The National Weather Service predicts as much as 10 inches for some areas.
Weather Channel 1
Different forecast models predict Joaquin will either ram into Virginia, Maryland or North Carolina this weekend, or avoid the East Coast entirely as it takes a more easterly track up the Atlantic. Overnight, the American model trended toward the European model in predicting that the storm would not make landfall in the United States.
Still, Georgia, the Carolinas and Virginia appear in line to be soaked by a separate storm pulling tropical air into the region. Between 10 and 15 inches of rain has been forecast over a 72-hour period from Friday through Sunday — with as much as 20 inches in some places. Parts of Maryland, Delaware and New Jersey are also expected to be drenched this weekend.
These stocks are rallying amid Hurricane Joaquin worries
In Kitty Hawk, North Carolina, officials were hoping sandbags protect the town if the hurricane strikes the Outer Banks. "It could be some resemblance of what Sandy [in 2012] offered us, and we've learned some lessons from that," Kitty Hawk Mayor Gary Perry told NBC station WAVY.
Weather Channel 2
In New York, Gov. Andrew Cuomo told reporters that emergency operations centers are staffing up and government departments will begin monitoring areas that have been prone to problems from severe weather.
Low-lying areas in New York and New Jersey were ravaged by Superstorm Sandy.
"I have learned the hard way that it is better to prepare for the worst, and in the past, we were not. We did not take worst-case scenario into full consideration and we paid the price," Cuomo said.
Due to the storm, three cruise lines have been forced to reroute ships, including Carnival, Princess and Norwegian, according to Cruise Critic. Disney has also had to make itinerary changes to three of its ships.
The National Football League has also made contingency plans for the Eagles vs. Redskins game scheduled for Sunday in the D.C. area.
"We are monitoring the forecast and having dialogue with both teams," said Greg Aiello, the NFL's senior vice president of communications.
—NBC News contributed to this report.
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6149ecfe65d4fb7a0c291fab92e31b44 | https://www.cnbc.com/2015/10/01/hurricane-joaquin-strengthens-off-bahamas-with-120mph-winds.html | Historic Rains Likely for Carolinas, Virginia; Hurricane Joaquin Gains Power | Historic Rains Likely for Carolinas, Virginia; Hurricane Joaquin Gains Power
VIDEO2:0302:03East Coast bracing for Hurricane JoaquinSquawk Box
Hurricane Joaquin strengthened once again early Thursday, packing 120 mph winds as a second storm threatened historic rainfall and potential flooding for the Carolinas and Virginia this weekend.
The Category 3 hurricane powered toward the Bahamas and was about 75 miles southeast of San Salvador Island at 8 a.m. ET, moving at about 5 mph.
The Weather Channel tweet
Different forecast models predict Joaquin will either veer northwestward, ramming into Virginia, Maryland or North Carolina this weekend, or avoid the East Coast entirely as it takes a more easterly track up the Atlantic. Overnight, the American model trended towards the European model in predicting that the storm would not make landfall in the U.S.
Regardless of Joaquin's path, the Carolinas and Virginia appeared in line to be soaked by a separate storm pulling tropical air into the region. Between 10 and 15 inches of rain has been forecast over a 72-hour period from Friday through Sunday — with as much as 20 inches in some places. Parts of Maryland, Delaware and New Jersey are also expected to be drenched this weekend.
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Heavy rain was already falling late Wednesday, and at least one person died in flash floods in Spartanburg, officials said.
Virginia Gov. Terry McAuliffe on Wednesday declared a state of emergency, and North Carolina Gov. Pat McCrory ordered state agencies to prepare for floods.
"I cannot stress enough the imperative for Virginians to focus on the rainstorms that are headed our way [Thursday] and Friday, well before Hurricane Joaquin could potentially impact Virginia," McAuliffe said. "The forecast of up to 10 inches of rain in areas across Virginia could result in floods, power outages and a serious threat to life and property."
In Kitty Hawk, North Carolina, officials were hoping sandbags protect the town if the hurricane strikes the Outer Banks. "It could be some resemblance of what Sandy offered us, and we've learned some lessons from that," Kitty Hawk Mayor Gary Perry told NBC station WAVY.
These stocks are rallying amid Hurricane Joaquin worries
In New York, Gov. Andrew Cuomo said: "Our state has seen the damage that extreme weather can cause time and time again — and I am urging New Yorkers to take precautions for more heavy storms in the coming days."
Disney Cruise Line rerouted a ship headed toward Nassau in anticipation of the hurricane, and said the vessel would go to Key West instead. Another Disney ship out of Port Canaveral will have its itinerary rerouted. Carnival Cruise Lines also modified the routes of two cruises, the company said.
Bill Karins
Authorities in the Bahamas fear storm surges, coastal flooding and up to 10 to 15 inches of rain, said Geoffrey Greene, a senior forecaster with the Bahamas Meteorology Department.
Why Miami is mostly unprotected from hurricanes
"We would be very concerned about them," Greene said of the eastern islands.
Jonathan Erdman
Isolated downpours of up to 15 inches are possible over San Salvador and Rum Cay through Friday, the Bahamas National Emergency Management Agency said.
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b269ba51231b71cc49fa4ebf748876b4 | https://www.cnbc.com/2015/10/01/incredibly-fearful-fed-braces-for-jobs-report.html | 'Incredibly fearful' Fed braces for jobs report | 'Incredibly fearful' Fed braces for jobs report
VIDEO1:5101:51How the Fed rate hike affects the stock marketInterest Rates
Data-dependent Federal Reserve officials suddenly are finding the data turning against them.
A year that was supposed to provide the Fed with plenty of ammunition to justify a rate increase has fallen considerably short. Economic growth remains mired, inflation increasingly has become a bygone remnant of years past and industrial activity is nearing contraction levels.
Moreover, the stock market is tumbling, investors' nerves are frayed and a government shutdown, narrowly averted for October, looks increasingly probable in December, right around the time the U.S. central bank gets its final opportunity to start normalizing interest rates.
On top of it, corporate America has seen a few high-profile episodes of mass layoffs, which spiked in September thanks to Hewlett-Packard jettisoning 32,500 workers. Analysts expect companies to post a 4 percent decline in third-quarter profits, which will be lucky to break even for the year.
This is the environment into which the Fed is looking to raise rates.
Market participants are growing increasingly skeptical that a hike is coming anytime soon.
A trader works on the floor of the New York Stock Exchange, as television screens display Federal Reserve Chair Janet Yellen speaking, June 17, 2015.Lucas Jackson | Reuters
"What's really convinced me the Fed is going to stay lower for longer is the evidence would have to be overwhelmingly clear in one direction," said Michael Arone, chief investment strategist for State Street Global Advisors' U.S. intermediary business. "In this environment, the Fed is incredibly fearful of making a policy mistake, moving too soon and undermining economic growth."
The evidence for a rate hike, considerably stronger earlier in the year, has grown weaker. Futures trading indicates the probability of an October move at 14 percent, while December is at 41 percent and January a tossup at 50 percent.
Read More The Fed may be 'losing grip on market prices'
Thursday brought a fresh round of troubling news: The Institute for Supply Management's registered a 50.2 reading, just a notch above indicating contraction in the sector. Outplacement service Challenger, Gray & Christmas reported a 43 percent surge in planned layoffs, and stocks surrendered what looked like a second day of solid gains as biotech shares once again plunged.
After a 3.9 percent bounce in the second quarter offset a meager 0.6 percent gain in the first quarter, gross domestic product appears headed for another lackluster reading. Barclays, for instance, on Thursday slashed its expectations for Q3 down to 1.5 percent growth, and the Atlanta Fed GDP tracker is looking for a 0.9 percent increase, revised sharply lower Thursday from 1.8 percent just a few days ago. Over the past month, a Bespoke Investment Group measure of economic indicators moved to a near "neutral" trend and is likely to turn negative.
Investment houses on Wall Street, meanwhile, have been lowering their market expectations for the year, with Goldman Sachs earlier this week cutting its projection down to 2,000 from 2,100. The index was off 7.4 percent year to date as of Thursday afternoon trading, and hopes for a positive year are diminishing.
Read More RBC slashes S&P 500 call, but loves stocks (huh?)
Perhaps most important in the Fed's eyes is the lack of standard of living growth. Wages have been mired in a disinflationary spiral while undermployment remains high and labor force participation is at levels not seen since the Carter administration. A government measure that goes beyond the headline rate and measures those underemployed and not actively looking for work sits elevated at 10.3 percent.
When Friday's jobs numbers hit the tape — expectations are for payrolls to grow by 206,000 and the unemployment rate to hold at 5.1 percent — Fed officials will be looking past the headlines.
Their focus more likely will be turned toward the internals of the much-watched Bureau of Labor Statistics report — namely less-glamorous metrics like wage growth, hours worked and the percentage of people working part time for economic reasons. Such details will be important for the Fed, which is looking for a reason to raise rates even as its success in filling either side of its dual mandate wanes.
"The primary focus and what's going to keep them on hold is the lack of meaningful wage inflation and inflation overall," State Street's Arone said.
Indeed, what likely keeps Fed Chair Janet Yellen and her colleagues awake at night the most is failing at not one but both of their mandates for full employment — which would trigger solid wage gains — and price stability, which not only entails controlling inflation but also avoiding deflation.
Ultimately, a confused and conflicted Fed makes for confused and conflicted investors, particularly in an environment where the financial markets have leaned so hard on the central bank.
"There's a risk that the Fed does the right thing at the wrong time," Mohamed El-Erian, chief economic advisor at Allianz, told CNBC.
Read More El-Erian: Emerging markets are 'completely unhinged'
Investors have been piling into money market funds, putting $17 billion into the zero-yielding instruments last week while pulling $7.3 billion from U.S. equity funds. Sentiment is battered as well, with bullishness on the American Association of Individual Investors' weekly survey falling to a six-week low of 28.1 percent, and in the process setting a record by registering below the average of 39 percent for 30 straight weeks.
Investors beset by volatility, then, probably should get used to it.
"Until we get some clarity on the direction of interest rates, until investors get comfortable that the economic slowdown in China isn't going to leak into an emerging market contagion and global recession, I think we're likely to have continued volatility," Arone said. On Friday's jobs report, he said, "For those looking looking for the aha moment, it's just not going to come."
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51f29da4f94cf504fe45c3cd1da02d22 | https://www.cnbc.com/2015/10/01/investors-are-doing-a-big-about-face-on-these-stocks.html | Investors just did a big about-face on US stocks | Investors just did a big about-face on US stocks
Looking for a sign of a bottom in U.S. stocks? Exchange-traded funds may be offering what you want.
The latest data on flows into ETFs shows investors doing a big about-face on U.S. equities. Earlier this year, investors were pouring into international equity ETFs and dumping U.S. stock ETFs. But the September month-end data shows investors once again betting big on U.S. equity funds — and not really betting on much else among global stocks.
Traders work on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
The S&P 500 may still be in the red for the year, but "the real reversal ... is in large-cap U.S. equity," said Stacey Brorup, ETF analyst at FactSet Research Systems.
In the second quarter, U.S. equity ETFs saw the largest outflows, but in the month of September and for the just-ended third quarter as a whole, U.S. large-cap attracted the highest asset gains — $7.16 billion and $16.26 billion, respectively. U.S. equity ETFs took in net flows of $9 billion overall in September, the largest monthly take for U.S. equities during the third quarter, according to FactSet.
"It's a big turnaround," Brorup said.
Most notable among U.S. equity gainers was the biggest of them all, the SPDR S&P 500 (SPY), which had the largest net outflows for the first half of the year. Now it's topping the charts for inflows, with close to $6 billion in September. The Vanguard S&P 500 ETF (VOO) was second in September flows, with close to $2 billion.
Top ETF asset classes in September
U.S. equity: $9.35 billion U.S. fixed income: $8.85 billion International fixed income: $1 billion
Last quarter, international equity flows dwarfed all other ET asset classes, with $48 billion in flows, and the next highest inflows were in international fixed income, though at a "measly" $2 billion, Brorup said.
The data also shows the skittishness one would expect on the part of investors amid the high volatility, with the third-quarter take for U.S. equities, the leading asset class, less than half the second-quarter international equity ETF flows, at $19.5 billion. U.S. fixed income was the No. 1 gainer in the third quarter, with more than $21 billion in flows. International equity ETF flows sunk to $1 billion in the third quarter.
Todd Rosenbluth, director of ETF and mutual fund research, S&P Capital IQ Global Markets Intelligence, agreed that despite a down performance for U.S. equities, the significant inflows, particularly for large caps, is the most interesting shift in recent ETF investing.
Fourth-quarter trading began with a whimper, but the S&P doesn't have to finish the year with a gain to be a modestly positive bet in the fourth quarter, based on historical data. The S&P 500 fell 6.9 percent through the first three quarters of 2015. Only once during its history has the S&P 500 ended the year with a gain after posting a decline of 6 percent or more through the first nine months of the year, according to CNBC data based on the 16 occurrences. However, the S&P 500 has averaged an overall fourth-quarter return of 3.2 percent across these 16 instances, and the index posted a fourth-quarter gain 11 of the 16 times.
The Fed's decision to hold off on raising rates may be the biggest driver of improving ETF investor sentiment for U.S. stocks, said Neena Mishra, director of ETF research at Zacks Investment Research.
"The outlook for monetary policy has become more uncertain, but investors now believe that rates may stay near zero for much longer than expected before the FOMC meeting; in fact, many now expect the Fed to wait until 2016," said Mishra.
She added: "Ultimately, low interest rates are good for U.S. stocks, particularly when the domestic economy continues to recover slowly but steadily. Given increasingly uncertain outlook for growth in other parts of the world, U.S. stocks still remain a relatively safe bet for investors."
How 3 emerging markets pros avoided worst of collapse
U.S. fixed income was the second-highest gainer behind U.S. stocks and right behind the equity ETF take, with $8.8 billion in net new flows.
The same concerns that have turned investors away from global stocks and back to the U.S. help explain this shift as well. Global worries have led investors to seek refuge in so-called safe-haven assets, particularly Treasury bonds.
"Investors seeking to avoid too much interest-rate risk favored shorter-term Treasury ETFs, but many preferred longer-term Treasury bond ETFs. Longer-term Treasury bonds may continue to benefit from heavy buying by foreign investors, as long as interest rates remain ultra-low in Europe and Japan, the U.S. dollar continues to strengthen and long-term inflationary expectations remain benign," Mishra said.
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a2fa642b856c422410e3b1e6e0a399d1 | https://www.cnbc.com/2015/10/01/iran-troops-in-syria-as-russia-bombs-cia-trained-rebels.html | Iran troops in Syria as Russia bombs CIA-trained rebels | Iran troops in Syria as Russia bombs CIA-trained rebels
VIDEO3:2003:20Syria: Can US and Russia agree?
Hundreds of Iranian troops have arrived in Syria to join a major ground offensive in support of President Bashar al-Assad's government, Lebanese sources said on Thursday, a sign the civil war is turning still more regional and global in scope.
Russian warplanes, in a second day of strikes, bombed a camp run by rebels trained by the U.S. Central Intelligence Agency, the group's commander said, putting Moscow and Washington on opposing sides in a Middle East conflict for the first time since the Cold War.
Senior U.S. and Russian officials spoke for just over an hour by secure video conference on Thursday, focusing on ways to keep air crews safe, the Pentagon said, as the two militaries carry out parallel campaigns with competing objectives.
"We made crystal clear that, at a minimum, the priority here should be the safe operation of the air crews over Syria," Pentagon spokesman Peter Cook said.
Two Lebanese sources told Reuters hundreds of Iranian troops had reached Syria in the past 10 days with weapons to mount a major ground offensive. They would also be backed by Assad's Lebanese Hezbollah allies and by Shi'ite militia fighters from Iraq, while Russia would provide air support.
"The vanguard of Iranian ground forces began arriving in Syria -soldiers and officers specifically to participate in this battle. They are not advisers ...we mean hundreds with equipment and weapons. They will be followed by more," one of the sources said.
So far, direct Iranian military support for Assad has come mostly in the form of military advisers. Iran has also mobilized Shi'ite militia fighters, including Iraqis and some Afghans, to fight alongside Syrian government forces.
Moscow said it had hit Islamic State positions, but the areas it struck near the cities of Hama and Homs are mostly held by a rival insurgent alliance, which unlike Islamic State is supported by U.S. allies including Arab states and Turkey.
Hassan Haj Ali, head of the Liwa Suqour al-Jabal rebel group that is part of the Free Syrian Army, told Reuters one of the targets was his group's base in Idlib province, struck by about 20 missiles in two separate raids. His fighters had been trained by the CIA in Qatar and Saudi Arabia, part of a programme Washington says is aimed at supporting groups that oppose both Islamic State and Assad.
"Russia is challenging everyone and saying there is no alternative to Bashar," Haj Ali said. He said the Russian jets had been identified by members of his group who once served as Syrian air force pilots.
Read MoreRussia strikes in Syria: Why you should be worried
The group is one of at least three foreign-backed FSA rebel factions to say they had been hit by the Russians in the last two days.
At the United Nations, Russian Foreign Minister Sergei Lavrov told a news conference Moscow was targeting Islamic State. He did not specifically deny that Russian planes had attacked Free Syrian Army facilities but said Russia did not view it as a terrorist group and viewed it as part of a political solution in Syria.
The aim is to help the Syrian armed forces "in their weak spots", said Kremlin spokesman Dmitry Peskov.
Pentagon spokesman Peter Cook described Thursday's military talks as "cordial and professional." During the talks, Elissa Slotkin, an acting assistant U.S. secretary of defense, "noted U.S. concern that areas targeted by Russia so far were not ISIL strongholds." Cook said, using an acronym for Islamic State.
The Pentagon said it would not share U.S. intelligence with Russia and suggested the talks included ideas to increase safety, such as agreeing on radio frequencies for distress calls and a common language for communications.
U.S. Republican Senator John McCain, chairman of the Senate Armed Services Committee, and a frequent Obama critic, questioned the logic of talks on how to keep U.S. and Russian militaries apart, known in military parlance as "deconfliction."
"Unfortunately, it appears 'deconfliction' is merely an Orwellian euphemism for this administration's acceptance of Russia's expanded role in Syria, and as a consequence, for Assad's continued brutalization of the Syrian people," McCain said.
Russia's decision to join the war with air strikes on behalf of Assad, as well as the increased military involvement of Iran, could mark a turning point in a conflict that has drawn in most of the world's military powers.
Read More
With the United States leading an alliance waging its own air war against Islamic State, the Cold War superpower foes, Washington and Moscow, are now engaged in combat over the same country for the first time since World War Two.
They say they have the same enemies - the Islamic State group of Sunni Muslim militants who have proclaimed a caliphate across eastern Syria and northern Iraq.
But they also have different friends, and sharply opposing views of how to resolve the 4-year-old Syrian civil war, which has killed more than 250,000 people and driven more than 10 million from their homes.
Washington and its allies oppose both Islamic State and Assad, believing he must leave power in any peace settlement.
Washington says a central part of its strategy is building "moderate" insurgents to fight Islamic State, although so far it has struggled to find many fighters to accept its training.
Moscow supports the Syrian president and believes his government should be the centerpiece of international efforts to fight the extremist groups.
It appears to be using the common campaign against Islamic State as a pretext to strike against groups supported by Washington and its allies, as a way of defending a Damascus government with which Moscow has been allied since the Cold War.
The Russian strikes represent a bold move by President Vladimir Putin to assert influence beyond his own neighborhood. It is the first time Moscow has ordered its forces into combat outside the frontiers of the former Soviet Union since its disastrous Afghanistan campaign in the 1980s.
Read MoreSyrian currency hints things are grim but not yet 'chaotic'
The Russian and Iranian interventions in support of Assad come at a time when momentum in the conflict had swung against his government and seem aimed at reversing insurgent gains.
Prime Minister Haidar al-Abadi of neighboring Iraq, where Washington is also leading an air war against Islamic State while Iran aids government forces on the ground, said he would be open to Russian strikes as well.
A Syrian military source said on Thursday that Russian military support would bring a "big change" in the course of the conflict, particularly through advanced surveillance capabilities that could pinpoint insurgent targets.
Putin's gamble of going to war in Syria comes a year after he defied the West to annex Ukraine's Crimea peninsula, drawing U.S. and EU economic sanctions while igniting a wave of popular nationalist support at home.
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6047a9686973522c09c2605b9bc592e1 | https://www.cnbc.com/2015/10/01/it-feels-like-someone-screamed-fire-tom-lee.html | VIDEO3:4603:46A bull's eye on the marketFast Money
The third quarter has come to a close, and the scoreboard for the year isn't pretty. The S&P 500, Dow and have dropped roughly 7 percent, and many former market leaders including health care and large-cap tech have seemingly fallen off a cliff. But one top strategist says that because expectations are so low going into the home stretch, there may be nowhere to go but up.
"It feels like someone called fire in a crowded theater," Fundstrat Global Advisors co-founder Tom Lee wrote in a research note this week. "We find clients more scared than any time since 2009."
On CNBC's "Fast Money" on Wednesday, Lee laid out 3 key reasons why dismal sentiment may actually be an indicator that stocks could be headed higher.
First, Lee addressed the Street's "grim expectations" for third quarter earnings. "A lot of times how markets react to earnings has to do with expectations," Lee said, adding that this time around, "people are expecting a horror show."
5 stocks to watch in the 4th quarter
According to Lee, future earnings could actually get a boost from a U.S. dollar that's taken a pause from its rapid ascension. "The dollar isn't as strong as it was earlier this year, so it's going to start to become a tailwind," he said.
Lee was less bullish on China, conceding that there is still a large amount of uncertainty surrounding the world's second largest economy. But according to Lee, weakness in China does not necessarily translate to weakness in stocks on the home front.
"In 1989, Japan was a bigger share of global GDP than China is today," he said, "and the downturn in Japan did not spill over into the U.S."
Finally, Lee said the out-performance of the S&P 500 versus the rest of the world, coupled with a seasonally strong period for stocks, could help the index reach his target level of 2,325 by the end of the year.
"Whenever you have a down Q3, Q4 is up 90 percent of the time," he said. "If there is a global downturn, people are going to migrate to the quality market. Since 2009, that's been the S&P. So I think the S&P is actually going to be a recipient of capital."
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bb951debc6506f1514b68b7f0ad3f4d9 | https://www.cnbc.com/2015/10/01/japan-aug-household-spending-picks-up-eases-concern-about-economy.html | Japan Aug household spending picks up, eases concern about economy | Japan Aug household spending picks up, eases concern about economy
Getty Images
Japan's household spending rose in August for the first time in three months and the availability of jobs improved to its best in more than two decades, which could temper concerns that the economy has fallen into a recession.
The 2.9 percent annual increase in household spending in August was more than the median estimate for a 0.4 percent year-on-year increase and followed a 0.2 percent annual decline in July as consumers bought more cars.
A separate survey from the Bank of Japan showed corporate inflation expectations weakened slightly last quarter, which could bolster the argument that the central bank will ease monetary policy at the end of this month when it updates its long-term economic forecasts.
VIDEO3:0603:06Consumers: The bright spot in Japan stocks?Squawk Box Asia
"Household spending and the tight labor market are a positive sign that the economy is chugging along," said Norio Miyagawa, senior economist at Mizuho Securities.
"I don't expect the BOJ ease when it meets next week. The BOJ is likely to lower its consumer price forecasts at the end of the month, so it faces a test of credibility if it doesn't ease policy then."
The gains in auto sales are particularly encouraging, because it suggests this category has finally recovered from a tax increase that triggered a slump in compact car sales, Miyagawa also said.
In addition to higher car sales, many consumers bought new domestic air conditioners during a spell of unusually hot weather, a government official said.
Government data showed the jobs-applicants ratio rose to 1.23 in August, which is the highest since January 1992. The jobless rate was 3.4 percent in August, slightly more than the median estimate of 3.3 percent.
Read MoreJapan's Q3 tankan large manufacturers index sinks
Gains in household spending suggest financial market turmoil caused by China's slowing economy has done less damage to sentiment than initially feared.
The BOJ will hold a two-day meeting on Oct. 6-7, but many economists are focused on the following meeting on Oct. 30, where the central bank will recalculate its consumer price and gross domestic product forecasts.
Japanese firms expect consumer prices will have risen an average 1.2 percent a year from now, the BOJ's September tankan showed on Friday.
That was less than a 1.4 percent annual increase expected in the previous survey, which suggests the BOJ may have to expand asset purchases again to meet its 2 percent inflation target.
Some economists are also calling for the government to launch a stimulus package after a surprise fall in August's industrial production increased the chance that the economy contracted in July-September, which would put it in recession.
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caa3a1efc41a025abfd17470fa4d9000 | https://www.cnbc.com/2015/10/01/late-stage-investors-making-more-bad-calls-says-vc.html | Late-stage investors making more bad calls, says VC | Late-stage investors making more bad calls, says VC
VIDEO4:2104:21Dorsey absolutely the best choice: Pro
VIDEO3:0903:09Unicorns rise but beware of 'unicorpse': ProSquawk Box
Another venture capitalist has come forward to say that the playing field in Silicon Valley is slated to get sparse in the coming years.
"We're in an environment where the late-stage private investors have not done a great job on discerning between the durable companies that are going to be there for the long haul, and the companies that may have great growth, but not sustainable growth," Geoff Lewis, partner at Founders Fund, said Thursday on CNBC's "Squawk on the Street."
Lewis said that while many start-ups are investing heavily in activities with high returns, some are simply spending $1 to make 85 cents — and those start-ups should expect to disappear in the next few years.
With a large number of so-called unicorn start-ups valued at $1 billion or more, tech veterans from Benchmark's Bill Gurley to Chamath Palihapitiya of The Social+Capital Partnership have foreshadowed that unprofitable start-ups may see funding streams go dry.
Start-up spending 'extremely wasteful': VC
Technology IPOs at lowest since 2009
"Unicorns are supposed to be unique," Internet analyst Mark Mahaney told CNBC Wednesday. "If there's 100 of them, they're not unique. There are going to be ... some players in there that don't justify their valuations and probably aren't going to be around. And investors are going to have to get used to something called the down round, which in other instances is called, an IPO."
Mahaney said many highly valued start-ups might not gain the same favor in public markets.
Initial public offerings in the technology sector hit the lowest level in six years in the third quarter of 2015, according to data released Thursday by Renaissance Capital. Across sectors, IPOs were down 45 percent year-on-year, and for the first time in four years, average IPO returns were negative across sectors, the Renaissance report said.
As investors look forward into 2016, Renaissance sees a packed pipeline of IPOs ahead
"I'd love to see some of those [unicorn] companies go public," Mahaney told CNBC. "It would be more opportunity for public investors to invest in some of these plays."
Guess who a tech downturn could hurt the most
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7b444e71c7cbaa87942af0cde857cb67 | https://www.cnbc.com/2015/10/01/lg-launches-v10-smartphone-new-smartwatch-as-it-gets-bullish-on-q4.html | LG bullish on Q4 for mobile amid smartphone launch | LG bullish on Q4 for mobile amid smartphone launch
South Korean electronics giant LG said it expects the health of its mobile business to improve in the fourth quarter of the year, as it launched a new smartphone and smartwatch.
The new models allow users to make calls without being tethered to a handset. Speaking at the launch of these devices, LG mobile chief Cho Juno said various macroeconomic changes, such as a favorable exchange rate will help the company, but did not give any specific numbers or say whether he was referring to profit or revenues.
In the second quarter of 2015, LG said sales in its mobile division were flat year-on-year with shipment volumes falling 3 percent. Operating margin also decreased with the electronics giant blaming "price declines as a result of intensified competitions and increased marketing expenses."
LG will be hoping it can improve the numbers with the launch of its V10 smartphone, which has two front screens – one that can be always on and one that can be switched off. It's a 5.7 inch device which also has two front cameras. Usually smartphones have one.
The second screen can be on and display items such as weather, time, data and battery life. It can also be a launch area for shortcuts for apps.
LG said that when watching movies, for example, the second screen can notify you about a message without disturbing your viewing.
LG has also upgraded the cameras on the device and added a fingerprint sensor which it said can be used with Android Pay – Google's Apple Pay competitor – in the U.S.
LG
There were no details on price but this is a premium device from LG which will be competing in the same bracket as the iPhone 6s and Samsung's Galaxy S6 Plus. In such a crowded market, analysts said that LG is attempting to stand out with the dual screen, but will need to make a big effort to convince consumers that it's a useful feature.
"It is an unusual design, but what it reflects is how difficult it is to build a phone that is visibly different," Ian Fogg, head of mobile at IHS, told CNBC by phone.
"But LG will have to educate users to explain why it matters and it will be hard for LG to use these features to dramatically boost sales volumes for its smartphones."
LG also took the wraps off its latest smartwatch, the Watch Urbane second edition, which runs Android Wear, Google's wearables operating system.
The device can connect to 4G and 3G internet, Wi-Fi and Bluetooth, but LG gave very few details about whether the SIM card is built into the device or whether it would need to be inserted manually. There was also no announcement about which operators will support this or how a customer might be able to use this service.
But, the feature will allow people to answer calls and carry out mobile functions without the smartwatch being tethered to a smartphone. This means that users could leave their phone at home while they go for a run and still make calls, for example.
LG Watch Urbane Second EditionLG
LG is not the only company offering this ability. Samsung launched the Gear S2 smartwatch last month which has 3G connectivity. Still, analysts aren't convinced the feature will be a big deal given that users will most likely have to take out another line with an operator or perhaps have to pay more money on their existing contract.
"It is still a solution looking for a problem. It's a very niche solution at the moment. Smartwaches will be smartphone companions rather than independent devices," Ben Wood, chief of research at CCS Insight, told CNBC by phone.
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1a184d2a985ead54549d969185a4df0d | https://www.cnbc.com/2015/10/01/matt-damon-on-mars-and-microfinancing.html | Matt Damon on Mars and microfinancing | Matt Damon on Mars and microfinancing
VIDEO1:0601:06Matt Damon on making moviesCelebrities
You're 140 million miles away from Earth, alone, and no one can get to you for four years. What would you do?
Matt Damon said he'd just start crying. That might not make for a great sci-fi movie though, so he took on the role of fictional astronaut Mark Watney, originally based on the best-selling e-book by Andy Weir.
"The Martian," from Twentieth Century Fox, cost $109 million to produce and is projected to take in $40 million at the domestic box office when it opens this weekend. That's despite a few gaffes by Damon on the promotional tour, where he had to clarify comments he made in interviews.
It hasn't seemed to bother critics or fans. According to movie site Fandango, advanced sales are outpacing 2013 sci-fi epic "Gravity," and the film has a 94 percent approval rating on rottentomatoes.com. While "The Martian" is a big budget Hollywood movie, that's not exactly what attracted Damon to the film.
"It's a big Hollywood movie that's not a superhero movie or a franchise movie. It's just a good old fashioned movie," said Damon on why he's grateful to be involved.
In the shifting dynamic of Hollywood today, there isn't much room on the studio slate for those $20 million to $30 million movies, films the Oscar-winning Damon says used to be his bread and butter. Even so, Damon sees a lot of hope in the shift to the small screen. As a producer and actor, he thinks the most exciting part is that great storytelling has migrated to television. And Damon isn't opposed to making the jump to the small screen, saying he would absolutely work on a limited TV series, calling the work being done recently on TV "incredible."
With "The Martian," Damon and director Ridley Scott are hoping to capture that optimism and pride Americans took in the space program in its heyday. Damon and the rest of the team worked closely with NASA throughout the moviemaking process to make sure the science was right and that many of the things the astronauts in the movie endured were realistic.
Damon came away with a deep appreciation for the space agency. "The work they're doing is really necessary," said Damon. He hopes this movie will get people excited about space travel again, whether it's by NASA or the private companies like Space X, Blue Origin and Virgin Galactic.
Hollywood's top collectors now own $4 billion worth of art
Lights! Camera! JOBS! But not where you might think
One of the causes much closer to home than the Red Planet is Damon's charity water.org. Co-founded in 2009 with civil engineer Gary White, water.org provides water and sanitation programs for impoverished communities around the world.
The nonprofit organization, which has a four-star rating from Charity Navigator, brings micro-financing tools to tackle the problem of unsafe drinking water and sanitation systems. According to the World Health Organization, more than 2.4 billion people have inadequate access to safe drinking water and sanitation services. Damon said the idea was the brainchild of White, who saw people around the world spending large parts of their day on the hunt for water.
The plan is simple: Lend people money to put in simple, clean water systems in their homes, and that will free them up to be more productive. "It's not an income generating loan," said Damon, "but it's an income enhancing loan because you're buying this time back that you had spent collecting water and now you have a water tap in your house and now you have the time to work and pay the loan back. So it's just one little tiny more hurdle to clear ... and then common sense will tell you that it works." And the loans are, in fact, paid back. Water.org says there is a 99 percent global repayment rate.
"The Martian" opens nationwide on Friday.
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9eda251c1aeb9dc23e866d4c2a8eab19 | https://www.cnbc.com/2015/10/01/merrill-lynch-stock-indicator-predicts-rally.html | Highly successful indicator predicts 18% rally | Highly successful indicator predicts 18% rally
Traders work on the floor of the New York Stock Exchange.Getty Images
After stocks go through a correction, pundits dust off old Wall Street market indicators to try to game a bottom. Things like "Dow Theory" and "death cross."
Well here's one more for you.
Bank of America Merrill Lynch's "Sell Side Indicator" predicts the will rally 18 percent over the next 12 months, according a report sent to clients Thursday.
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e833c1521a444b692644a8b6cf9984a4 | https://www.cnbc.com/2015/10/01/microsoft-google-stand-down-in-patent-battles.html | Microsoft, Google stand down in patent battles | Microsoft, Google stand down in patent battles
VIDEO0:2700:27MSFT and GOOGL patent battle overPatents
Microsoft Corp and Google have agreed to bury all patent infringement litigation against each other, the companies announced on Wednesday, settling 18 cases in the United States and Germany.
In another sign of the winding down of the global smartphone wars, the companies said the deal puts an end to court fights involving a variety of technologies, including mobile phones, wifi, and patents used in Microsoft's Xbox game consoles and other Windows products.
The agreement also drops all litigation involving Motorola Mobility, which Google sold to Lenovo Group last year while keeping its patents.
How Huawei could gain ground on Apple & Samsung in the U.S.
However, as Microsoft and Google continue to make products that compete directly with each other, including search engines and mobile computing devices, the agreement notably does not preclude any future infringement lawsuits, a Microsoft spokeswoman confirmed.
"Google and Microsoft have agreed to collaborate on certain patent matters and anticipate working together in other areas in the future to benefit our customers," the companies said in a joint statement. They did not disclose the financial terms of the deal.
The companies said they have been cooperating on such issues as the development of a unified patent court for the European Union, and on royalty-free technology for speeding up video on the Internet.
Google launches new phones, streaming devices
One of the most bitter disputes between the rivals began in 2010 when Microsoft accused Motorola, later acquired by Mountain View, California-based Google, of breaching its obligation to offer licenses to its wireless and video patents used in Xbox systems at a reasonable cost.
In July, a U.S. appeals court ruled that the low licensing rate Microsoft pays to use the patents had been properly set by a federal judge in Seattle.
Wednesday's agreement is not the first among smartphone heavyweights to settle their patent disputes. In 2014, Samsung Electronics Co Ltd and Apple Inc agreed to drop all litigation against one another outside the United States.
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ccde79f9ce382ae8bc26854751355d69 | https://www.cnbc.com/2015/10/01/mystery-why-is-apple-having-such-a-bad-week.html | Mystery: Why is Apple having such a bad week? | Mystery: Why is Apple having such a bad week?
Getty Images
Why is Apple underperforming so much after it announced seemingly positive first weekend iPhone sales?
That is the big question asked by many investors with Apple shares down 4.5 percent week to date compared to a flat market.
"Sales for iPhone 6S and iPhone 6S Plus have been phenomenal, blowing past any previous first weekend sales results in Apple's history," said Tim Cook, the tech giant's CEO in the Monday morning press release.
The company reported it sold more than 13 million of the new iPhones during the first three days after launch compared to 10 million last year.
CNBC Pro asked several Apple experts and traders to find out why the company is selling off. Here is what they said…
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008a7abff7cfdc58eeef1e867c8cb7dc | https://www.cnbc.com/2015/10/01/noaa-needed-a-hurricane-hunter-to-track-joaquin.html | NOAA needed a 'hurricane hunter' to track Joaquin | NOAA needed a 'hurricane hunter' to track Joaquin
VIDEO1:2701:27Hurricane Joaquin strengthens to cat 3Squawk Box
Hurricane Joaquin has been tough to track.
The hurricane has been confounding many of the major models that agencies in and outside the United States use to track storms. The models used by forecasters at the National Oceanic and Atmospheric Administration (NOAA) and elsewhere have shown drastically different paths for Joaquin, so NOAA is bringing in additional tools in an attempt to make those forecasts better align.
An NOAA plane. The agency is part of the Department of Commerce.Source: NOAA
On Wednesday night, NOAA sent up an airplane, one of the agency's so-called hurricane hunters, to drop about three dozen devices called "dropwindsondes" — sometimes referred to as "dropsondes" — into the air around the storm. The plane does not fly into the storm itself, but takes samples of the environment around it
The dropwindsondes are small GPS-enabled tubes filled with sensors and attached to small parachutes. They can measure barometric pressure, ambient air temperature, relative humidity and GPS Doppler shifts, according to NOAA. Those data are used to compute wind speed and direction and give meteorologists a better idea of what the storm is doing, and where it might be headed.
The plane also has instruments on board that measure the shape of the storm's wind field and speed of the storm's winds.
Forecasters at NOAA rely on a long list of models maintained by several agencies, most of them in North America and Europe. They include NOAA's own Global Forecast System, the European Center for Medium-Range Weather Forecasts (ECMWF) model, the United Kingdom Met Office model and several others.
These stocks are rallying amid Hurricane Joaquin worries
Many of those models rely on huge supercomputers that crunch all sorts of meteorological data. And they often disagree.
Even with the data from the plane, confidence in the forecasts remains "low," according to NOAA's forecast discussion from forecaster Michael Brennan, which was issued early Thursday. The track guidance changed significantly overnight, after (and perhaps due to) information coming in from the plane, Brennan wrote.
Two important National Weather Service models showed the hurricane pulling away from the Bahamas and heading toward the Carolinas in three or four days.
VIDEO2:0302:03East Coast bracing for Hurricane JoaquinSquawk Box
NOAA's GFS model showed the hurricane moving toward New York's Long Island and southern New England in five days. The UKMET showed the hurricane moving northward but staying farther offshore.
Separately, there's the problem of predicting storm surge, which was main factor that made Hurricane Sandy so destructive to parts of the East Coast in 2012.
The NOAA plane will be running more missions in the coming days—two every day, and meteorologists hope the forecasts across the different models will become more consistent.
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71c92837c3590d0e843502a57bda639b | https://www.cnbc.com/2015/10/01/obamacare-cadillac-tax-who-wants-it-and-who-wont-pay.html | Obamacare 'Cadillac tax'—who wants it, and who won't pay | Obamacare 'Cadillac tax'—who wants it, and who won't pay
A group of 101 health-care economists and analysts Thursday strongly urged the U.S. Congress to keep Obamacare's much-loathed "Cadillac tax" in place in the absence of a better alternative, as a new survey suggested that many companies that face the tax intend to avoid it by having their workers pay a bigger share of health-care costs.
The U.S. Capitol buildingGetty Images
The survey of 442 employers that currently offer health benefits to employees found that nearly 60 percent of them have calculated that they will eventually be subject to the tax if they don't make changes to their health plans.
The tax is a 40 percent levy on what employers and workers jointly pay for an employee's health coverage above a certain threshold — $10,200 for individual coverage and $27,500 for family coverage.
But only 5 percent of companies that expect eventually to be subject to the tax actually expect to pay it. Those companies say they either already have or plan to make changes to their health coverage programs that will allow them to avoid the tax, according to the survey by the International Foundation of Employee Benefit Plans.
Overwhelmingly, those changes involve reducing benefits, shifting costs to employees in the form of higher copayments or coinsurance, and switching to health plans that have higher deductibles. Such moves to have workers pay a bigger share of their health costs out of pocket, as opposed to in the form of premiums, would help get health plans under the Cadillac tax threshold.
Obamacare's Cadillac Tax is very unpopular, except...
Julie Stich, director of research at IFEBP, said she believes the survey shows employers are "serious" about the threat and impact of the tax.
"They're going to be starting to take actions to change their plans so they don't trigger the tax," Stich said. "All of that will have an impact on their workforces."
Almost 9 out of 10 of the companies surveyed by her group reported that they already have calculated whether they will trigger the tax at some point. The majority of employers who expect to be subject to the level, 62 percent, said it would affect them in 2018 if they did not make any change to their plans.
Others said they expect, in the absence of any changes, to be hit by the Cadillac tax in future years.
Hillary ClintonGetty Images
The tax's thresholds are indexed to overall inflation. Because health-care costs traditionally rise at a higher rate than overall consumer costs, the tax is expected to capture a growing share of employers in future years.
The Kaiser Family Foundation, in a recent report, found that nearly 25 percent of employers would be subject to the tax when it starts in 2018. After that, Kaiser said, 30 percent of employers are projected to pay the tax by 2023, and 42 percent of employers by 2028.
IFEBP's survey does not reflect those projections, in part because the survey just looked at companies that already are offering health coverage to workers. But the survey included a mix of large and small employers from almost 20 industries.
And the survey reflects the degree of the concern among employers that would be subject to the Cadillac tax, and their desire to avoid it even if that means having workers bear a bigger share of health costs.
"Workers will be angry when they see their benefits cut," said Larry Levitt, senior vice president of Kaiser, who nonetheless added, "This is not a tax that anyone wants to pay."
He noted that the "tax itself is not deductible as a business expense, so the effect of the tax is bigger than" the 40 percent levy.
Controversial drug CEO was accused of serious 'harassment'
The size of the tax and the effect it's expected to have in driving up employees' share of health costs has led to "an emerging consensus among politicians and interest groups against the tax," Levitt said.
Earlier this week, former Secretary of State Hillary Clinton, who is seeking the Democratic presidential nomination, called on Congress to repeal the Cadillac tax, and "to fully pay for the cost of the repeal."
Clinton, who had already seen her leading competitor for the nomination, Vermont Sen. Bernie Sanders, call for such a repeal, is believed to be motivated in part by opposition to the tax among labor unions, a key constituency for the Democratic Party. Unions are largely against the tax because health-care benefits are among the most valued parts of negotiated labor contracts.
The U.S. Chamber of Commerce, usually no friend to unions, also is strongly against the tax. And Republican politicians have lined up against the tax.
But the letter sent Thursday to the Ways and Means and Finance committees of both houses of Congress underscores the fact that repealing the Cadillac tax won't come without a cost. That letter cited the tax's role in both controlling rising overall health-care costs, and generating tens of billions of dollars of revenue for the U.S. Treasury.
The letter from 101 economists and policy analysts noted that the tax was included in the Affordable Care Act to address the "economically inefficient and regressive" tax policy that allows the "unlimited exclusion of employer-financed health insurance from income and payroll taxes."
Among the signatories were MIT's Jonathan Gruber, an architect of the ACA who gained notoriety last year when it was revealed that he publicly cited "the stupidity of the American voter" as one of the factors that led to Obamacare getting passed into law.
The group wrote that the tax "will help curtail the growth of private health insurance premiums by encouraging employers to limit the cost to the tax-free amount."
They also said that the tax will discourage insurance that is so generous to workers that they "have little incentive to insist on cost-effective care, and providers have little incentive to provide it." A key theory behind the tax is that if workers are forced to pay more directly for medical services, they will be smarter consumers and less apt to get treatment that is unnecessary, or which could be obtained at a lower cost.
The economists and analysts wrote that "as employers redesign health insurance plans to hold costs within the tax-free amount, cash wages and other fringe benefits will increase."
"Furthermore, repealing the Cadillac tax would add directly to the federal budget deficit, an estimated $91 billion over the next decade, according to the Joint Committee on Taxation," the economists wrote.
Kaiser's Levitt said, "The only people who seem to like this tax are economists and deficit hawks."
But the tax is "so powerful" in controlling health-care inflation as well as providing revenue used to expand health coverage under Obamacare, Levitt said, that it will be difficult politically to get Congress to agree on a full-scale repeal of the tax, much less an amendment that delays or lessens its impact.
"There is no clear consensus about what to replace it with," Levitt said.
He also said, "I really do believe [the Cadillac tax] will be one of the biggest issues facing the next president."
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c3eaf092243e311f23056e99210e08a3 | https://www.cnbc.com/2015/10/01/oil-might-have-hit-the-bottom-analyst.html | Oil might have hit the bottom: Analyst | Oil might have hit the bottom: Analyst
VIDEO3:1303:13Oil’s playbook for Q4 2015Worldwide Exchange
As oil prices struggled to hold onto this week's gains, investors are obsessed with pinpointing crude's next move—and there's hopes the worst might be over.
"We might have hit the bottom," Neil Atkinson, head of analysis at Lloyd's List Intelligence, told CNBC Wednesday. "Simply because the Brent and WTI price have both been stuck in the mid to upper $40s since about the beginning of August (aside from Black Monday period). They haven't really gone anywhere, a little bit up, a bit down."
Both Brent crude and WTI Crude remain below $50 per barrel, sharply below the levels above $100 seen prior to the slump that began in June 2014.
At the end of 2015's third quarter, WTI crude closed down over 24 percent, with ongoing supply and demand imbalances worsened by the economic slowdown in China and accompanying financial markets fears. The three months from July to September marked WTI's worst quarterly performance since 2014's fourth quarter, when it lost over 40 percent.
Andrey Rudakov | Bloomberg | Getty Images
However, Atkinson forecast that the supply-demand imbalance would soften during the remainder of 2015.
On the supply side, he said that U.S. oil production seemed to have peaked in June at 9.6 million barrels a day. Since then, production has come down slightly, with the U.S government announcing Wednesday that oil production was now just over 9 million barrels.
Meanwhile, global demand growth prospects are being revised upwards, which Atkinson attributed partly to investors' reaction to the lower prices seen during the past year.
Oil rout: Quit complaining, it’s a win for consumers
"We've got falling supply from the non-OPEC group of countries, rising demand growth from around the world, not least of course from the United States – bit of uncertainty about China," he said.
"So we may well see this rebalancing of the oil market, which people have been looking forward to for some time, might now finally be underway."
Atkinson added that OPEC (the Organization of the Petroleum Exporting Countries) members were "hanging in there for better days," waiting for when the market rebalanced and demand growth picked up.
VIDEO1:2201:22Syria’s influence on oil? ZeroWorldwide Exchange
On Wednesday, Russia launched its first round of air strikes on Syria, leading to debate as whether or not this might impact oil prices.
"Russia's military intervention in the Syrian conflict has increased the geopolitical risks, which is giving tailwind to the prices," Carsten Fritsch, a Commerzbank analyst, told Reuters.
Russia strikes in Syria: Why you should be worried
However, Atkinson argued that oil prices had been barely affected by the multi-year long Syrian conflict.
"Throughout the whole of the Syrian conflict – which has been going on for five years now – it's influence on the oil markets has actually been essentially zero," he said.
"Syria was a significant oil producer but not that important, and I don't think today's rise in the oil price has got that much to do with the Russian actions. Perhaps a little bit, yes."
—By CNBC's Alexandra Gibbs, follow her on Twitter @AlexGibbsy.
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3e4b7f03b906ec67526ca30d5dd46aea | https://www.cnbc.com/2015/10/01/oil-rout-quit-complaining-its-a-win-for-consumers.html | Oil rout: Quit complaining, it’s a win for consumers | Oil rout: Quit complaining, it’s a win for consumers
After more than a year of lower oil prices, consumers are beginning to reap the benefits of cheaper fuel for their homes and cars.
"It's mad," says Ashleigh, a hairdresser in Kent, south-east England, referring to the fall in petrol costs.
"I use my car a lot for work and pleasure," she said, preferring to give just her first name. "I get a full tank for £40 ($61), which is about £15-20 ($23-$30) less than it was last year."
Getty Images
Oil prices have more than halved over the past year but the fall has a lagged impact on consumers, which explains why it takes time for cheaper oil to show up in consumer spending and confidence data, economists said.
They add that oil producers tend to feel the impact of lower oil first, with early 2015 marked by a wave of job cuts in the energy sector and a sharp fall in the value of shares of oil companies.
"We've had an incredible commodity shock, which really hurts producers for a long period before it begins to benefit the consumers," Giles Keating, global head of research, private banking and wealth management at Credit Suisse, told CNBC earlier this week.
"But over the medium term, the consumers win out massively – so that's U.S. consumers, European consumers, it's any kind of company that uses energy – these are the big beneficiaries, it just takes time to come through," he said.
Oil price collapse gives euro zone some relief
Down far and fast
The price of Brent crude oil, trading at $49 a barrel on Thursday, has fallen some 50 percent in the past year and is down about 24 percent this year alone. U.S. crude meanwhile has fallen to around $45 a barrel from more than $100 a barrel last year.
Concerns about a supply glut and slowing demand from China have pummelled oil prices and strategists do not expect a strong recovery any time soon.
Brent crude is expected to average $58.60 a barrel in 2016, a Reuters poll of 31 analysts showed on Wednesday. That forecast compared with an estimate of $62.30 in a poll a month earlier.
As a general rule of thumb, a $10 fall in the price of oil adds 0.2 percentage points to global gross domestic product (GDP) growth, said Julian Jessop, chief global economist at Capital Economics.
He said lower oil prices were "definitely" having an impact on consumers although this varied across the globe.
"Gasoline prices in the U.S. have fallen and consumer confidence has held up well even as stocks fell sharply in the last few months," he told CNBC. "Not everyone knows about stock markets but they do know about gasoline prices."
According to the U.S. Energy Information Administration (EIA), regular gasoline in the U.S. is currently around $2.322 per gallon, down $1.03 from a year ago.
VIDEO3:1303:13Oil’s playbook for Q4 2015Worldwide Exchange
Pump prices for unleaded petrol in the U.K. stood at £114.5 in mid-August, down 11 percent from where they stood a year earlier, according to the country's statistics office. Britain has the highest prices for unleaded petrol in the 28-member European Union due to taxes.
In the euro zone meanwhile, cheap oil is helping boost household incomes, EY said in a report released on Thursday.
Deflation risks
As well as the U.S. and Europe, consumers in Japan, which imports virtually all of its energy; China; and India – the world's two most populous nations - were seen as big beneficiaries from the dive in oil prices.
And the fall is a particular tailwind for emerging markets such as India that subsidise fuel, providing a buffer at a time when concerns about China's economic outlook and the prospect of higher interest rates in the U.S. have rattled world markets.
Bad quarter for stocks; dire one for commodities
The danger, say some analysts, is that lower oil prices could lead to a prolonged fall in overall consumer prices with knock-on implications for consumer spending and the economy.
Inflation in the euro zone, for instance, turned negative in September as oil prices tumbled, data on Wednesday showed.
"There is a risk that low headline inflation turns into something more negative, but Europe is a net beneficiary from the fall in oil," said Jessop.
Credit Suisse's Keating added: "It always struck me as nonsense this whole thing about inflation being low so because oil prices have fallen."
"This is a reflationary shock not an inflationary one. Why do we worry about (low) inflation?," he said.
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2b3e55409aeeb669727b3338cda49b63 | https://www.cnbc.com/2015/10/01/oil-set-to-balance-natgas-may-surge-in-q4-analyst.html | Oil set to balance, natgas may surge in Q4: Analyst | Oil set to balance, natgas may surge in Q4: Analyst
VIDEO3:0603:06Bullish bet on nat gasPower Lunch
Oil prices are set to head higher as global crude oil inventories appear poised to balance for the first time in eight quarters during the final months of 2015, Bank of America Merrill Lynch's Francisco Blanch said Thursday.
The market was oversupplied with 2 million barrels per day of oil throughout the first half of 2015, Blanch said in a recent note. But after a build of 540 million barrels during the last two years, the market is set to turn, he added.
"That's going to be a big event, which I think is going to support the price of oil into year end," he told CNBC's "Power Lunch."
Blanch now sees U.S. crude at roughly $50 a barrel and globally traded at $55 by year end. U.S. crude has consolidated around $45 in recent weeks, and Brent has remained rangebound between about $47 and $49.
Read More Oil might have hit the bottom: Analyst
In a widely cited note issued last month, Goldman Sachs projected U.S. crude would end the year near $40 per barrel. It could potentially fall as low as $20 per barrel if production declines too gradually and crude surpluses surpass storage capacity.
Blanch said he believes it's highly unlikely oil will fall to $20 a barrel.
Merrill's chief global head of commodities research said in his note that global oil demand growth is increasing at the second-strongest pace in more than 10 years. At the same time, supply has crept lower as U.S. producers cut capital expenditures amid a protracted commodity price downturn.
The party may not last very long, though, Blanch told CNBC.
"We are very worried about the first half of next year, because we'll still see inventory builds in the next refinery maintenance season, but again, it's something we will worry about once we go past December," he said, referring to the seasonal periods when refineries shut down to service their facilities.
During those periods, crude inventories tend to build as refinery demand drops off.
Read More Oil rout: Quit complaining, it's a win for consumers
Blanch also sees natural gas surging about 40 percent to $3.50 per MMBtu into the end of the year as demand for the beaten-up commodity builds in the coming quarters.
That price increase will be driven by exports to Mexico, a big ramp up in industrial demand, and the construction of liquid natural gas plants in the American Southwest, he said.
On Thursday, natural gas futures fell to a three-year intraday low on heavy surpluses. It was down 3.1 percent at $2.445 shortly after 2 p.m. EDT.
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d3718485358561e28ded04b24b705fe4 | https://www.cnbc.com/2015/10/01/pimcos-case-for-credit.html | Mark Kiesel, CIO of Global Credit, PIMCO.Adam Jeffery | CNBC
For investors hungry for return in a low-yield world, bond fund giant PIMCO sees big opportunity in credit right now.
PIMCO global credit CIO Mark Kiesel told CNBC's "Power Lunch" Thursday the outlook for developed credit markets, and in particular, the U.S. credit market, remains "constructive."
"We do not see a recession, we actually see the U.S. economy doing well," said Kiesel. "The economic expansion will likely keep defaults low. In the U.S. a real rate of 2.25 to 2.75 percent economic growth is not too hot or cold, and credit spreads are near the sweet spot."
Read MorePIMCO has a message for the Fed: Hike already!
Kiesel said credit spreads look very appealing relative to historical levels, especially in light of today's economic growth rate.
"Higher interest rates should tighten credit spreads," said Kiesel. "Higher yields for corporate bonds in the context of a range-bound equity market should result in an asset allocation shift out of equities and into corporate bonds."
In particular, Kiesel is bullish on bank loans, which perform well because the "all-in coupon" rises as rates increase.
"Credit spreads are attractive at today's valuations," said Kiesel. "We recommend buying cash corporate bonds and new issues to selectively gain exposure right now to the credit markets."
Kiesel's top sectors in the credit markets include housing and housing-related industries, consumer, telecom, health care, banks and financials.
Read MorePIMCO fund outperforms Bill Gross a year after departure
Kiesel co-manages PIMCO's Total Return Bond Fund, the world's largest actively managed bond fund, with a four-star rating from Morningstar.
VIDEO4:2204:22Seeking safe returnsPower Lunch
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fa88463f22726fa4a09ccd570ae4b133 | https://www.cnbc.com/2015/10/01/pm-david-cameron-says-no-reparations-for-uk-role-in-caribbean-slave-trade-bbc.html | UK PM Cameron says no reparations for slave trade: BBC | UK PM Cameron says no reparations for slave trade: BBC
U.K. Prime Minister David CameronGetty Images
British Prime Minister David Cameron said his administration would not make reparations for the country's role in the Caribbean slave trade, the BBC reported on Wednesday.
Cameron made the remarks during his visit to Jamaica, the first for a British prime minister in 14 years, according to the BBC.
"I do hope that, as friends who have gone through so much together since those darkest of times, we can move on from this painful legacy and continue to build for the future," Cameron told Jamaica's parliament, according to the BBC.
Caribbean leaders in 2014 approved a 10-point plan to seek reparations from the former slave-owning states of Europe. The Caribbean countries said European governments in addition to being responsible for conducting slavery and genocide, also imposed 100 years of racial apartheid and suffering on freed slaves and the survivors of genocide.
VIDEO2:3302:33How can Europe secure its border?Squawk Box Europe
Slavery ended throughout the Caribbean in the 1800s in the wake of slave revolts, and left many of the region's plantation economies in tatters. Caribbean leaders have said that the region continues to suffer from the effects of slavery today.
The BBC reported Jamaican Prime Minister Portia Simpson Miller said she had broached the issue of reparations with Cameron.
Governments in the Caribbean have estimated that reparations for the slave trade could cost trillions of dollars and some have floated the idea of debt relief, the BBC reported.
Read MoreUK pledges to take up to 20,000 more Syrian refugees
The BBC said some 46,000 British slave-owners, including a distant relative of Cameron's, were among those compensated a current-day equivalent of 17 billion pounds for "loss of human property" after the country emancipated its slaves in 1833.
Labour leader Jeremy Corbyn said he would be open to apologizing for the slave trade were he to become prime minister, the BBC said.
The issues of slavery and reparations have reverberated in the United States in recent years as well. Ta-Nehisi Coates, a journalist for the Atlantic and recent "genius" grant winner, wrote an influential article in 2014 making the case for reparations. And in 2008 Congress issued a formal apology for slavery and the subsequent racial segregation known as "Jim Crow."
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28e112246341c57d9ab350f3e749bceb | https://www.cnbc.com/2015/10/01/power-play-what-to-avoid-in-q4.html | Trader on the floor of the New York Stock Exchange.Lucas Jackson | Reuters
The market kicking off October and the fourth quarter on a negative note, with the Dow down more than 200 points at its low on Thursday. But Rob Lutts, president and chief investment officer at Cabot Wealth Management, tells CNBC's "Power Lunch" a pullback is a buying opportunity.
It's a "stock pickers market. Have more than usual cash to take advantage of volatility," Lutts said.
Even though Lutts is bullish on equities, he is negative on energy, materials and telecommunication.
Read More Dow off triple digits; Nasdaq 1% lower as Apple, biotech weigh
"Oil will be low for several years- innovation [the] key factor here. Avoid energy sector for now," Lutts said.
He also believes slowing global growth will weigh on materials and disruptive technologies will hurt telecom.
Materials is higher during trading, while energy and telecom are lower.
Disclaimer
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51b6542026f4767ac2123c35af576fa1 | https://www.cnbc.com/2015/10/01/powerball-player-wins-310m-on-ticket-sold-at-michigan-shell-station.html | Powerball Player Wins $310M on Ticket Sold at Michigan Shell Station | Powerball Player Wins $310M on Ticket Sold at Michigan Shell Station
VIDEO0:3100:31Powerball jackpot claims a winnerAdvisor Insight
A $310.5 million Powerball lottery jackpot was waiting to be claimed on a single ticket bought in a Shell gas station in southwestern Michigan.
The winning ticket — the second-largest so far this year — was sold in Three Rivers, some 30 miles south of Kalamazoo, Michigan Lottery spokesman Jeff Holyfield confirmed.
The winning numbers were 21-39-40-55-59 and Powerball 17, according to its website.
An attendant at the gas station told NBC News that she had not heard anything about the winning jackpot and didn't know who'd bought the ticket.
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"The winner or winners would need to contact us during business hours, which are 7:45 a.m. to 4:45 p.m.," Holyfield added in an email.
The "last big winner we had didn't contact us for a month so she could line up a financial planner [and] lawyer," he said.
In February, three players from North Carolina, Puerto Rico and Texas split a $564.1 million jackpot.
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b26dbaab5ddf018b5b470e5b055a3462 | https://www.cnbc.com/2015/10/01/russia-sees-eye-to-eye-with-us-on-syria-lavrov.html | Russia sees 'eye-to-eye' with US on Syria: Lavrov | Russia sees 'eye-to-eye' with US on Syria: Lavrov
VIDEO4:0604:06Russia raising stake in Syria airstrikesSquawk Box
A top Russian official on Thursday played down criticism over the country's airstrikes in Syria, saying Russia sees "eye-to-eye" with a U.S.-led coalition targeting the Islamic State terror group.
At the United Nations, Russian Foreign Minister Sergey Lavrov said Moscow had targeted "depots and sites" of ISIS, adding the country would only strike terrorist groups. He noted that military talks with the United States would take place "very, very soon."
Just hours after the Russian parliament waved through military intervention in Syria, its first airstrikes in the civil war-torn Middle Eastern country were confirmed Wednesday night. On Thursday, there were further strikes on rebel positions in the northwest, Lebanon's al-Mayadeen TV reported. This came after tense discussions this week between President Barack Obama and his Russian counterpart Vladimir Putin over the best course of action in Syria.
White House Press Secretary Josh Earnest said Thursday that Russian involvement risks making the Syrian conflict "indefinite" and has forced the U.S. to re-evaluate its strategy there. It added the U.S. and Russia held the first in a series of talks on "deconflicting" aircraft operations and military communications.
"Russia will have to pay the costs" of its strikes in Syria, Earnest said, adding that the White House would not rule out formal diplomatic action. He said the White House perceives the country has not fully made distinctions between terrorists and opposition groups.
Russian Foreign Minister Sergei Lavrov (L) speaks during a news conference with United States Secretary of State John Kerry, at the United Nations headquarters in New York September 30, 2015.Darren Ornitz | Reuters
Russia argues that it is just leading the charge in an international coalition against the Islamic State — much like Stalin allied with the Western powers to fight Hitler. But Western diplomats said Wednesday that the first targets were in parts of Syria far from ISIS strongholds, including a U.S.-backed rebel group called Tajammu al-Izzah.
Read MoreRussia strikes in Syria: Why you should be worried
Defense Secretary Ashton Carter on Wednesday said the Kremlin had poured "gasoline on the fire" of the volatile situation in Syria. A Kremlin spokesman said Thursday that Russia aims to help Syrian President Bashar Assad's forces fight extremist groups where the government is "weak."
The White House argued, though, that Russia would contribute to the U.S.-led coalition if it genuinely wanted to fight ISIS.
Lavrov stressed that Russia does not consider the Western-backed Free Syrian Army a terrorist group. He said that "we consider terrorists those who have been recognized as such by the U.N. and Russia's legal system."
Read MoreThe real reason Putin is in Syria
Speaking to reporters, Lavrov declined to comment directly on reports of a planned Iranian and Syrian ground offensive against rebels. Earnest said he could not confirm the reports, but contended that, if true, they showed that Russian airstrikes had heightened the conflict.
Lavrov noted the Russian air force is working with the Syrian army to hit ISIS and other terrorist positions. Lavrov added that Russia had not been "invited" to carry out strikes against ISIS in Iraq.
— CNBC's Catherine Boyle, AP and Reuters contributed to this report
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56d923bbd297f43a60b2559b43755a56 | https://www.cnbc.com/2015/10/01/s-could-fall-after-mixed-wall-st-finish.html | Asian stocks subdued ahead of US jobs | Asian stocks subdued ahead of US jobs
Pedestrians walk pass a share prices board in Tokyo, Japan.Yoshikazu Tsuno | AFP | Getty Images
Asian stocks were mixed on a subdued Friday, losing steam after two straight days of stellar gains, as investors awaited the crucial U.S. nonfarm payrolls report for September due later in the day.
The U.S. economy is seen adding 203,000 jobs last month, analysts polled by Reuters said.
"Today's payrolls number has once again been labelled a 'much watch' and to be fair, I think traders are getting a bit exhausted of these event risks which are supposed to carry so much weight that they can alter the investment landscape. Still, I don't see another 200,000 payrolls report as a real game changer. Naturally, the market will be keen to see if the tradition of August revisions occurs and this could alter the quality of the report. A fall in the unemployment rate (currently at 5.1%) and an increase in the participation rate would also aid the overall sentiment towards the release," IG's chief market strategist Chris Weston wrote in an email note released on Friday.
Overnight, Wall Street handed over a relatively uninspiring lead. The blue-chip closed marginally below the flatline overnight, while the S&P 500 and tech-heavy Nasdaq Composite added 0.2 percent each.
Nikkei flat
Japan's Nikkei 225 pared losses to finish flat on the final trading day of the week.
Export-oriented stocks turned mostly higher after dollar-yen ticked up in late Asian trade. Sony shares rose for the third consecutive session, up 3.3 percent, after Goldman Sachs initiated a 'buy' rating for the stock with a price target of 4,200 yen on Wednesday.
Construction equipment makers Komatsu and Hitachi Construction Machinery closed down 2.7 and 0.9 percent respectively, while Suzuki Motor underperformed its peers with a 2.4 percent slump.
Toshiba dropped 2.1 percent on the back of news that it may lay off staff in its underperforming home appliances, TV and PC businesses and seek partnerships for its nuclear operations after a$1.3 billion accounting scandal.
Comments from the firm's newly appointed chief executive added more gloom to the company's outlook. Masashi Muromachi said on Thursday that he expected to leave the position within the next three years.
On the domestic data front, Japan's household spending increased 2.9 percent in August from a year earlier, beating Reuters' estimates for a 0.4 percent rise.
The unemployment rate for the same month rose to 3.4 percent from July, government data released before the market open showed, slightly higher than the forecast for 3.3 percent.
VIDEO3:4503:45Market is looking for Abenomics 2.0: ExpertSquawk Box Asia
Hang Seng jumps 3.2%
Hong Kong's benchmark index hit a more than one-week high, as it played catch-up after being shut for public holidays on Thursday. The Hang Seng index closed 3.2 percent higher.
The China Enterprise Index which tracks Chinese companies, also more than doubled gains to 3.2 percent.
Property developers were among the top performers; China Resources Land leaped 8.7 percent, while China Overseas Land and Investment and China Vanke surged 7.1 and 3.3 percent respectively on the back of news that Chinese authorities cut the minimum downpayment level for first-time home buyers in many cities.
Shares of casino operators in Macau also attracted buy orders after data showed a narrowing drop in gaming revenues last month. Gaming revenues fell to 17.13 billion patacas ($2.15 billion), from 25.56 billion patacas a year earlier but slightly better than the 18.6 billion patacas decline in August, according to data released by the Macau government on Thursday.
Galaxy Entertainment rose 10.2 percent, while Sands China and SJM holdings climbed more than 6 percent each.
Markets in China remain closed for the week-long National Day holiday.
ASX falls 1.2%
Australian's index succumbed to profit-taking on Friday, with financials and miners leading the slide.
Westpac and Australia and New Zealand Banking were the biggest laggards in the banking sector, down more than 2 percent each. QBE Insurance and Macquarie Group closed down 2.1 and 1.2 percent respectively.
BHP Billiton and Rio Tinto dropped 0.4 and 1.7 percent respectively, tracking the renewed sell-off in the London-listed shares of Glencore on Thursday.
Retail plays remained in the red despite August retail sales beating expectations slightly, with a rise of 0.4 percent. Myer, Harvey Norman and JB Hi-Fi declined between 1.7 and 2.2 percent.
VIDEO4:1704:17Will October be a good month for stocks?Squawk Box Asia
Kospi sheds 0.5%
South Korea's Kospi index closed down in relatively subdued trade, as investors digested the latest current account and inflation data for September.
The consumer price index (CPI) edged up 0.6 percent from a year earlier, a government report showed, missing market expectations for a 0.9 percent increase. The inflation reading marked the 10th straight month in which consumer prices in Asia's fourth-largest economy grew below 1 percent.
On a month-on-month basis, CPI dipped into negative territory for the first time this year, down 0.2 percent in September.
Meanwhile, South Korea's seasonally adjusted current account surplus inched down in August to $8.41 billion, from a revised $8.72 billion in July, central bank data showed.
Automakers took the spotlight following the release of industry data which showed robust domestic car sales in September. Auto sales by the local carmakers such as Hyundai Motor, Kia Motors, GM Korea, Renault Samsung and Ssangyong Motor totaled 128,067 units last month, up 15.7 percent from a year earlier.
Shares of Hyundai fell 0.6 percent, while Kia and Ssangyong ended up 0.2 and 0.5 percent respectively.
Read MoreBeef imports soar as Koreans turn away from Hanwoo
AirAsia eyed
AirAsia shares fell following reports by the Nikkei business daily that it is pumping more than two trillion rupiah into its Indonesian affiliate. The stock narrowed declines to below 1 percent in the afternoon trading session, outpacing the broader FTSE Bursa Malaysia KLCI which slipped 0.3 percent on Friday.
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4c0162a0b6846b8e9f53ff4b650ad5c9 | https://www.cnbc.com/2015/10/01/sacca-i-expect-immediate-twitter-board-turnover.html | Sacca: I expect immediate Twitter board turnover | Sacca: I expect immediate Twitter board turnover
VIDEO2:4602:46Highly confident Dorsey will be CEO: SaccaSquawk Alley
VIDEO3:4403:44Twitter down over 5%, Sacca's viewSquawk Alley
VIDEO4:2104:21Dorsey absolutely the best choice: Pro
VIDEO1:3601:36Twitter close to naming next CEOSquawk Box
Chris Sacca, Lowercase Capital founder and Twitter investor, said on Thursday that once the question of CEO is cleared up, there will be "immediate turnover" on the Twitter board of directors.
"One of the things that we've seen from Jack Dorsey over at Square is he is great at building a talented board full of smart, successful and challenging members who can keep the company moving at its best," Sacca told CNBC's "Squawk Alley."
"We don't have that at Twitter right now, and I think we're going to see that for sure."
Shares of Twitter were down more than 6 percent on Thursday as investors awaited the announcement of the company's next permanent CEO. Sacca said he is "highly confident" that interim CEO and Twitter founder Dorsey will get the permanent seat.
"This isn't a hypothetical situation, he's been back in charge of Twitter now for over a quarter and over that time we've seen the product road map accelerate dramatically," he said.
Sacca does not recommend anyone buy Twitter stock on faith at this time. Things will get better, he said, but results will take some time.
He was most vocal about changing board members, urging more women and people of color to be included.
"This board has been a disaster form the beginning. If you look at history of the company looking all the way back, it's the outside board members who fired both of the founders of this company. Those are the founders that took us from zero users to 200 million users in just a few years; since then we have seen professional managers come in and go sideways with this. And so yet again I'm not shocked, I'm upset as I have ever been, but I'm not shocked by this board continuing to screw it up," he said.
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0dd57285a2cb197bd012ee6bd804d46e | https://www.cnbc.com/2015/10/01/softbank-leads-1-bln-investment-in-us-fintech-startup-sofi.html | SoftBank leads $1B investment in US fintech startup SoFi | SoftBank leads $1B investment in US fintech startup SoFi
SoFi’s CFO/COO Nino Fanlo (left) with CEO and co-founder Mike CagneySource: SoFi
SoftBank said it had led a $1 billion investment in U.S. financial technology startup SoFi, calling it the largest single financing round in the fintech space to date.
The deal is the latest in the sector, where relatively young companies offer financial services through software. In July, Spain's Banco Santander agreed to provide up to around $16 million for any opportunities it identifies with British mobile banking software partner Monitise.
25. SoFi
Other investors in SoFi, which refinances student loans and mortgages, included private equity firm Third Point.
SoftBank and SoFi said a joint statement that the Series E funding round will accelerate SoFi's growth as a financial services partner for consumers disenchanted with traditional banking.
Read MoreSoFi CEO: Funding boosts pursuit of 'aggressive' ambitions
SoFi aspires to be "the most trusted financial services partner in the U.S.," SoFi CEO and co-founder Mike Cagney said in the statement.
SoftBank is a longtime investor in tech startups, with Alibaba and Yahoo Japan among in its portfolio. More recently, it led a $500 million investment in Indian online marketplace Snapdeal in August, and put $250 million into Singapore-based ride hailing app GrabTaxi at the tail end of last year.
New hope for young entrepreneurs strangled by student debt
Separately, SoftBank said it had raised its stake in U.S. mobile phone carrier Sprint Corp to 83.19 percent from 81.99 percent, less than two months after its last incremental purchase.
The purchases are being closely watched by investors as a holding of 85 percent could see Sprint delisted under New York Stock Exchange rules. SoftBank has said it doesn't expect to reach 85 percent.
Shares of SoftBank ended morning trade up 2.7 percent, compared with a 1.7 percent rise in the benchmark index.
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e6cdd440052e716c1bd5e2194bd0e664 | https://www.cnbc.com/2015/10/01/sources-jack-dorsey-expected-to-be-named-permanent-twitter-ceo.html | Sources: Jack Dorsey Expected to Be Named Permanent Twitter CEO | Sources: Jack Dorsey Expected to Be Named Permanent Twitter CEO
VIDEO1:2801:28With Dorsey back, what's next for Twitter?Closing Bell
Jack is apparently back — for good this time.
Twitter co-founder Jack Dorsey, who has been serving as interim CEO for the past three months, is expected be named the company's new permanent CEO as early as tomorrow, although that timeframe may change, according to sources. Dorsey will apparently continue to run Square, the payments company he founded where he's also CEO.
Update: Sources said that it's not clear if the board has officially voted on Dorsey's appointment, because it was still settling the status of other key execs this week, most specifically revenue chief Adam Bain and CFO Anthony Noto. Bain is widely expected to become COO, although Noto may also report directly to Dorsey. Both have indicated to the board, said multiple sources, that they want Dorsey in the top job. These discussions with them about a new regime started recently.
Jack Dorsey, CEO of Twitter.John Chiala | CNBC
The Twitter board also has what one source called a "Plan B" of one serious outside candidate, whom I have been unable to confirm. But every single person I have contacted who has been seriously considered and also contacted by the company's recruiting firm, Spencer Stuart, said that their discussions did not progress very far.
As Re/code previously reported, despite claims that the CEO appointment was "imminent" a month ago, the board would wait until the end of the quarter (today) to act, with the choice stretching into October (tomorrow). That said, the choice will not be final until there is clarity on all the top operating roles.
If it happens, the selection will not be unexpected, with Dorsey in the pole position for most of the search, which has dragged on since this summer when Dick Costolo stepped down as the San Francisco social communication company's top exec.
Sources added that there is likely to be some shake-up of the board too, most immediately the departure of Costolo as a director.
Twitter has been in the midst of a high-profile CEO search since Costolo announced he was stepping down in early June and Dorsey took over in the interim. Dorsey has always been a serious candidate for the job, but few believed that he'd ever leave Square, which recently filed for an IPO, in order to take it. The CEO search committee complicated matters in mid-June by stating what seemed to be obvious: That the Twitter CEO role was a full-time job.
Twitter launches 'buy now' buttons for retailers
In other words, Dorsey would have to choose between the two companies.
That declaration, as it seems to have turned out, has been a largely empty one. The idea that Dorsey might return gained steam among people both inside and outside the company over the past few months even though he had no intention of leaving Square. He even referred to the companies as his two children when discussing the dilemma, according to a source. Another in-house candidate, head of revenue Bain, was also seriously considered and is very popular inside Twitter HQ. But Bain has refused to be considered for the job so long as Dorsey still wanted it, according to sources. So Dorsey it is.
There's much to be done at Twitter, which is going through arguably the roughest stretch in the company's history (which is saying something). The stock hit an all-time low in late August, and those close to the company are concerned about a lack of product vision coupled with the recent departure of three top product executives. Twitter's product team has since been restructured, with Jeff Seibert, who was running Twitter's developer products, now in charge of Twitter's core flagship product instead.
Dorsey said himself on the last earnings call that Twitter's product team needs to step up, and those close to Twitter believe that the company's product woes are a major reason Dorsey, who is very much a product visionary, was brought back in.
But while Twitter has finally filled its top position, it's likely that Dorsey's return will mean the departure of others from Twitter's upper ranks. Longtime head of communications Gabriel Stricker has already been ousted. Costolo was well liked internally, but criticized for failing to articulate Twitter's long-term mission. Dorsey is very much the opposite, and those who have worked with him say he can be ruthless if you disagree with his vision.
Twitter plans to go beyond its 140-character limit
That may be just what Twitter needs right now. Dorsey asked Wall Street for patience on the company's last earnings call. Now, perhaps, he will have a chance to show investors what they're waiting for.
Twitter and Square both declined to comment.
—By Kara Swisher and Kurt Wagner, Re/code.net.
CNBC's parent NBC Universal is an investor in Re/code's parent Revere Digital, and the companies have a content-sharing arrangement.
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a715eb9dc23b02a6e17a328e815248de | https://www.cnbc.com/2015/10/01/study-40-percent-of-millennials-pay-for-news.html | Study: 40 percent of millennials pay for news | Study: 40 percent of millennials pay for news
In a world flush with free information, some young people are still willing to shell out for news they read.
A recent poll shows that 40 percent of U.S. adults ages 18-34 pay for at least some of the news they read, whether it's a print newspaper, a digital news app or an email newsletter.
Another 13 percent don't pay themselves but rely on someone else's subscription, according to the survey by Media Insight Project, a collaboration of the American Press Institute and the Associated Press-NORC Center for Public Affairs Research. Older millennials are more likely than younger ones to personally pay for news.
PeopleImages.com | Getty Images
"Forty percent is a strong number but that means the majority are not willing to pay," said Keith Herndon, a visiting professor of journalism at the University of Georgia and a former journalist. "We have to think of ways of making the content compelling enough that someone would be willing to pay for it."
The proliferation of free news online and new ways for advertisers to reach consumers has besieged publishers of newspapers and magazines. Newspapers' print ad revenue, their primary source of cash, has dropped 63 percent, to $16.4 billion, in 2014 from 2003, according to a Pew Research Center analysis. Daily paid newspaper circulation reached a peak in 1984, at 63.3 million, according to the Newspaper Association of America. That represented a quarter of the country's population.
Daily paid circulation has now shrunk to 40.4 million, even as the U.S. population has grown by about a third.
There have been attempts to capitalize on the shift online. Digital ad revenues from newspaper websites have more than doubled as print ad revenue collapsed, but still come to only $3.5 billion-just a fraction of print ad revenue last year. And some major news organizations in recent years began charging for access to their websites and selling digital-only subscriptions, rather than posting content for free online.
For example, The New York Times and the Washington Post let non-subscribers click on only a certain number of articles per month before blocking content. In 2012, the Times' circulation revenue passed its ad revenue for the first time because of its digital initiatives. But newspapers overall still get the majority of their revenue from advertising, according to data from consultancy and accounting firm PwC.
And other popular news sites, particularly newer online-only outlets like Huffington Post and BuzzFeed, remain free to all.
29 percent pay for print
A quarter of those polled paid for some type of digital news, while 29 percent paid for a print paper or magazine. Older millennials are more likely than younger millennials to pay for print news products. That effect doesn't show up with digital news-millennials in their 30s are as likely as those in their late teens and early 20s to pay for online news.
More young people spend on entertainment. Nearly 8 in 10 pay for at least one service. When you break it down, 55 percent pay for downloading or streaming movies or TV-services like Netflix and Apple's iTunes. Four in 10 pay for cable, which contains channels that show news.
Nearly half pay for music and 46 percent pay for video games or gaming apps.
Verizon’s attempt to reach millennials
"Millennials have shown they are willing to engage in content that interests them," Herndon said, pointing to the popularity of podcasts.
But "a lot of traditional news organizations haven't been able to make a connection with younger audiences," who spend more time on their phones and often find links to individual, free bits of news through Facebook and other social media.
Chris Lederer, a principal at PwC, said digital subscription trends in the past two years have been "absolutely encouraging" for publishers. But he expects growth there to decline and sees the next evolution coming in the form of "digital newsstands," perhaps created by technology companies, which deliver news from various sources for paying customers.
The survey of 1,045 young adults was conducted from Jan. 5 through Feb. 2, 2015 by the Media Insight Project, a partnership between the AP-NORC Center and the American Press Institute, which funded the study.
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a7ecbb1cf8b854922ad50ceedc3c0b8e | https://www.cnbc.com/2015/10/01/the-top-5-most-expensive-paintings-ever-sold.html?slide=6 | The top 5 most expensive paintings ever sold | The top 5 most expensive paintings ever sold
Dave and Les Jacobs | Getty Images
Think you paid a lot for that $59.99 print of "Dogs Playing Poker"? How does $186 million for a half-century-old oil painting of three bands of violet, red and green sound? With wealthy investors plowing record amounts of cash into fine-art acquisitions — almost $57 billion worldwide in 2014 alone, according to the Netherlands' TEFAF Art Market Report — CNBC looks at the sky's-the-limit prices some famous artworks are commanding on world markets. Here are the top five most expensive painting sales of all time.
—By CNBC's Kenneth Kiesnoski Posted 1 October 2015
Jackson Pollock No. 5, 1948.Source: Wikipedia
The 2006 sale by record mogul David Geffen of this Abstract Expressionist work by American painter Jackson Pollock for $140 million made it the most expensive painting ever sold to date, according to a report in The New York Times from Nov. 2 of that year. There has been speculation that the unnamed buyer, whose private purchase was brokered by auction house Sotheby's, was Mexican-born financier David Martinez, founder and managing partner of Fintech Advisory.
However, Martinez's representatives deny that he owns the work, which was painted in — as its name indicates — 1948. The Times described the work as a "densely tangled composition in browns and yellows ... unusually large ... measuring about 4 by 8 feet [and] painted on fiberboard."
mployees of Christie's auction house hold up Spanish painter Pablo Picassos Les femmes dAlger (Version O) during a press preview in London on April 10, 2015.Justin Tallis | AFP | Getty Images
The last in a series of 15 paintings of the same name by renowned Spanish cubist artist Pablo Picasso, Version "O" of "Les Femmes d'Alger" sold at auction in May of this year for $179.3 million, according to the BBC — a record for an auction house sale. The new owner? The top bidder at the Christie's New York sale was Hamad bin Jassim bin Jaber Al Thani, former prime minister of Qatar.
The vibrant oil painting was completed by Picasso in 1955 and depicts several nude courtesans. It still holds the record as the fourth-most-expensive painting ever sold and is now housed in Al Thani's private collection in Qatari capital Doha.
Mark Rothko, No. 6 (Violet, Green and Red).
This seemingly simple 1951 painting by noted abstract expressionist painter Mark Rothko was acquired in a private sale by Russian billionaire Dmitry Rybolovlev in August of last year for a reported 140 million euros (about $186 million at 2014 exchange rates).
The work by Rothko, himself born in Russian-ruled Latvia in 1903, was the second-most-expensive painting ever sold at the time Rybolovlev acquired it; it's since dropped to third place. The sale made headlines not only for its bank-breaking price tag: Its new billionaire owner sued Swiss art broker and Singapore resident Yves Bouvier for fraud, claiming the latter inflated prices on nearly 40 works he sold to Rybolovlev.
The painting "Card Players," by Paul Cezanne, is visible at left during a tour of the The Barnes Foundation in Merion, Pa., May 28, 2003.Jessica Griffin | AP
Yet another of the top five most expensive paintings in the world is housed somewhere in Qatar. One of five oil paintings entitled "The Card Players" by French 19th-century Post-Impressionist painter Paul Cézanne was bought by the tiny Gulf State's royal family in 2011 for an undisclosed price estimated to range anywhere from $250 million to $300 million. (The version pictured is on display at Barnes Foundation in Philadelphia.)
The painting, dating back to the early 1890s, depicts Provencal, or southern French, peasants playing cards and smoking pipes; some experts note the lack of alcohol or money (implying gambling) in the painting, which may have increased its appeal to its Qatari purchasers.
Paul Gauguin painting 'Nafea faa ipoipo' (When Will You Marry?) is seen at Reina Sofia Museum on July 3, 2015 in Madrid, Spain.Quim Lienas | Getty Images
This 1892 oil painting of two Tahitian girls by another French Post-Impressionist, Paul Gauguin, was sold for a reported $300 million or so this past February to an undisclosed buyer, according to The New York Times, making it the all-time most expensive painting ever. Any guesses as to the purchaser? Many bets are — surprise — on a group of state museums in Qatar, which has embarked on an ambitious museum-building and art-acquisition campaign backed by the energy-rich emirate's royal family.
According to reporters Scott Reyburn and Doreen Carvajal of the Times, "Gauguin's Tahiti-period paintings are among the most admired and coveted artworks of the Post-Impressionist period." The new owners of this work, painted during the first of Gauguin's two periods of residency in Tahiti, will take possession of it come January. It had most recently hung in the Beyeler Foundation museum in Riehen, Switzerland.
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ed71f27b4624486ed628c561e8d959cd | https://www.cnbc.com/2015/10/01/theres-a-new-player-in-the-bond-trading-business.html | Trader Talk | Trader Talk
Traders work on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
There's a new player in the bond trading business.
Everyone knows it's getting harder to trade bonds. Jamie Dimon, Bill Gross and others have all complained about the lack of liquidity. Enter Liquidnet, which runs a dark pool for electronic trading in stocks. On Tuesday, the firm began operating a dark pool to trade bonds.
They're the latest organization to try to bring bond trading into the twenty-first century, by trading electronically. CEO Seth Merrin's hope is that it will attract much-needed liquidity to the industry.
It's an old problem: there is no central facility to trade bonds, like a stock exchange.
Partly, it's because bonds are much more heterogeneous than stocks. There's about 5,000 listed stocks in the U.S., but roughly 2 million individual tradeable bonds.
Bonds traditionally trade over-the-counter, between dealers—usually banks, and there have been attempts to get bonds to trade electronically, just like stocks do. Those efforts have been met with very limited success, however, partly because the banks who control the trading don't want to do it.
That was fine when banks had capital to trade bonds, but because of all the new regulations, that capital has gone away.
Merrin says that as of June, 2015, dealer inventories in bonds are down 75 to 90 percent to roughly $18 billion—a drop in the bucket in a $7.8 trillion market. Meanwhile, the amount of corporate issuance has shot up dramatically because of the low interest rates.
A lot more bonds with a lot less liquidity is a recipe for trouble, Merrin says.
So far, Liquidnet has signed up 120 asset managers from the U.S. and Europe. Those include large insurance firms, mutual fund firms, pension funds, hedge funds. It's a good start, but it's only a fraction of the more than 800 participants in the stock dark pool.
One of the difficulties of trading bonds is that there are literally tens of thousands of them, although there are about 5,000 that trade most frequently. So how to trade them?
Each bond has a CUSIP, an individual identifier. If there is no match, there is no information shared. If there is a match, you can trade the bond.
Still, there may be other ways to facilitate trading. If you're selling a bond, it has a specific CUSIP. However, if you are buying bonds, you may want to buy bonds with just specific characteristics. You might be able to say you want $100 million in bonds, with an AA rating, that matures in 2020, with a 3 percent yield, in the Industrial sector.
Merrin says that he hopes to have the capability to do just that shortly.
Will Liquidnet succeed? It's not clear. There have been several other attempts to trade bonds electronically, without success. Certainly one problem was the banks, who did not want to participate in any program that would shrink the handsome spreads they make trading bonds.
There are other firms trading bonds electronically. Many Treasuries and mortgage-backed securities trade on Tradeweb.
MarketAxess began trading in 2000 and has been public since 2004. It has had some success trading U.S. high grade corporates, eurobonds, emerging market bonds, and U.S. agency securities such as Fannie Mae.
TruMid began operations in April. They operate what they call a "Swarm," a 10-minute trading session that focuses on a predetermined set of securities.
With only three days of operations, Merrin declined to provide data on trading volume, other than to say he was pleased with the start. He promised hard data after a month of operations.
Let's hope at least some of these projects succeed. If we get a bond selloff, we will need all the liquidity we can get.
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31aa964355bb664f09e40bc80d42821b | https://www.cnbc.com/2015/10/01/this-hot-sector-is-gaining-momentum-technician.html | This hot sector is gaining 'momentum': Technician | This hot sector is gaining 'momentum': Technician
VIDEO2:0402:04The best sector for the fourth quarter is...Trading Nation
The third quarter was a rough one for all but one sector: Utilities.
This safe-haven sector ended the quarter in the green, while all other S&P sectors fell. However, one technician sees some previous leaders making a comeback in the fourth quarter.
Ari Wald, head of technical analysis at Oppenheimer, said the consumer discretionary ETF (XLY) is still making relative highs, which is a good sign for the sector.
As the ETF tests August lows, Wald said this could be a good entry point for buyers.
"It's got some good relative momentum behind it, and seasonals are in its favor, as well. Going back to 1990, consumer discretionary has been the second-best performing sector in the S&P for the fourth quarter," Wald said Thursday on CNBC's "Power Lunch."
Read More The sector with a silver lining for the fourth quarter?
Wald also is bullish on the consumer staples sector, which seasonally has been the best performing sector during the fourth quarter, he said.
Alternatively, Larry McDonald of Societe Generale is focused on the energy sector, which he said could benefit from a boost in commodities and monetary action from the Federal Reserve.
"You have to ask yourself, 'Is all this negative global economic activity coming back to the U.S., and could that do something to Fed policy?' If that happens, the commodity space will be the big, big winner in the fourth quarter and the first quarter of next year," said McDonald, as he believes a consequent Fed decision to keep interest rates unchanged would hurt the dollar and thus help battered commodities.
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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33fd1ba3b51af3c3db3584a38b232ee4 | https://www.cnbc.com/2015/10/01/top-analyst-says-sandisk-to-rebound-by-40-percent.html | Top analyst: SanDisk set to rebound by 40% | Top analyst: SanDisk set to rebound by 40%
Andrew Harrer | Bloomberg | Getty Images
With SanDisk down 45 percent for the year, the flash memory maker is finally undervalued, according to a top-ranked Wall Street analyst, especially after a significant investment into the industry by an influential Chinese investment fund.
Joseph Moore of Morgan Stanley upgraded SanDisk to "overweight" from "equal-weight" in a note sent to clients Thursday morning.
He presciently downgraded SanDisk in June. The shares are down 18 percent since that report.
Moore's picks average an 11 percent one-year return, and he is ranked in the top 10 percent of all Wall Street analysts, according to TipRanks.com.
Here's why he likes SanDisk now.
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0b2070c27081a3e49cbee4468c46d27b | https://www.cnbc.com/2015/10/01/toshiba-ceo-muromachi-may-let-off-staff-after-accounting-scandal.html | Toshiba CEO to leave within 3 years, plans job cuts | Toshiba CEO to leave within 3 years, plans job cuts
David Becker | Getty Images
Toshiba Corp may lay off staff in its underperforming home appliances, TV and PC businesses and seek partnerships for its nuclear operations to overhaul the company after a $1.3 billion accounting scandal, its chief executive said on Thursday.
"The latest accounting problems might have been driven by the fact that some of our businesses have lost earnings power. We must urgently take action in these businesses," Chief Executive Masashi Muromachi told a roundtable of reporters.
VIDEO1:4701:47Will leadership change help Toshiba?Street Signs Asia
Read More Toshiba shakes up board with high-profile outsiders
Muromachi, who took over as chief executive in June after Toshiba revealed one of the worst accounting scandals in Japanese history, also told reporters that he plans to step down within three years.
As part of its overhaul, Toshiba has launched a new management team, which won approval from shareholders on Wednesday.
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2f9be62d688b6387deb3d8b9156f3193 | https://www.cnbc.com/2015/10/01/us-layoffs-surge-43-in-sept-to-58877-challenger.html | Big layoffs may signal end of expansion: Challenger | Big layoffs may signal end of expansion: Challenger
VIDEO2:0902:09September job cuts up 43%Squawk Box
The number of announced layoffs by U.S.-based companies surged in September from the previous month, and Hewlett-Packard's outsized cuts raise a red flag, John Challenger, CEO of Challenger, Gray & Christmas, told CNBC's "Squawk Box" on Thursday.
"It's interesting that we are beginning to see some big layoff announcements this year," he said. "One of the things you start to see as you get near the end of a period of expansion, but before it really turns, is you start to see major layoffs occurring, big mega-layoffs like we're seeing now."
U.S.-headquartered companies put 58,877 jobs on the chopping block last month, up 43 percent from just more than 41,000 in August and the third highest monthly total this year, Challenger's global outplacement firm reported.
Challenger said the computer sector led all other industries in layoffs in September. Hewlett-Packard accounted for nearly all of the 32,500 reductions.
Last month, Hewlett-Packard announced it would cut 25,000 to 30,000 positions as part of its restructuring, which will split the company into one firm focused on enterprise services and one dedicated to its legacy hardware business.
Read MoreLayoffs needed because market is changing so rapidly: HP's Whitman
Challenger said the HP cuts were not necessarily an indicator that overall layoffs would continue to increase substantially month to month. Instead, he said, they may be a sign that companies having a more difficult time will begin shedding workers.
The first day of October saw further cuts from big companies.
Reuters reported that Wal-Mart is planning to lay off hundreds of people at its headquarters in Arkansas as part of the retail giant's efforts to pare costs. Fewer than 500 employees are expected to lose their jobs, and an announcement could be made as early as Friday, according to one of sources told Reuters.
ConAgra announced it is cutting about 1,500 jobs, or approximately 30 percent of its global, office-based workforce, and moving its headquarters to Chicago from Omaha, Nebraska. The packaged food company said Thursday its plans should result in about $200 million in savings, with most of that realized in fiscal 2018.
On Tuesday, Chesapeake Energy, the nation's second largest producer of natural gas, announced after it reported a $4 billion quarterly loss in August.
The energy industry remained the biggest job-cutting sector for the year, with 72,708 cuts announced since January, Challenger said.
The Challenger report comes a day before the Labor Department's closely watched monthly employment data for September. On Wednesday, ADP reported that private companies topped expectations for job creation in September, adding 200,000 new positions.
Read MoreJobs report may show Fed is 'way offsides': Economist
The September reductions in the Challenger report pushed the layoff count in the third quarter to 205,759, making it the worst quarter for job cuts in six years. Year to date, employers have announced plans to hand out 493,431 pink slips, more than the full-year total of 483,171 in 2014.
Art Cashin, director of NYSE floor operations for UBS, said the layoffs are part of the financial engineering market watchers have seen U.S. corporations engage in.
"You buy back your own shares, you take a look around, you can't get revenues up, and you start to pare back some of the help," he told CNBC's "Squawk on the Street." "It's unfortunate, but we've been seeing it despite the quote, unquote recovery that we're in."
Read More Evernote announces layoffs and office closures
The news is not all bad, John Challenger added. Big cuts can be like "manna from heaven" for growing companies that are deeply in need of skilled workers, he noted.
The labor market has tightened significantly over the last 12 months as the unemployment rate has fallen from 6.1 percent in August 2014 to 5.1 percent this August.
The Labor Department reported Thursday that the number of Americans filing new applications for jobless benefits rose modestly last week and a gauge of its trend fell, pointing to ongoing tightening in the job market.
—Reuters and the Associated Press contributed to this story.
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07622d4dacdb5b73727e99c818ddbe61 | https://www.cnbc.com/2015/10/01/us-markets.html | Stocks close mixed ahead of big jobs Friday | Stocks close mixed ahead of big jobs Friday
VIDEO3:5003:50Santelli: A recovery that has jobs but no productivityClosing Bell
VIDEO3:2503:25Cashin says: Europe & oil weigh on marketsWorld Economy
VIDEO2:4102:41Pisani's market open: Energy big leader
VIDEO2:1402:14Oil putting bid under stocks: Cashin
VIDEO3:0603:06Markets kick off new quarter
U.S. stocks closed narrowly mixed Thursday, attempting to put a steady start to the fourth quarter, as investors weighed soft manufacturing data and looked ahead to Friday's jobs report. (Tweet This)
"I think we had a big rally yesterday, (and) the revival Tuesday to the upside, so we're still digesting that," said Bruce Bittles, chief investment strategist at RW Baird. "The primary trend is still down."
The S&P 500 and Nasdaq composite eked out mild gains in the close, recovering intraday declines of more than 1 percent.
The major averages opened higher before quickly falling into negative territory, with the Dow Jones industrial average closing down about 13 points after falling as much as 211 points. In the close, IBM was the greatest weight on the blue chip index.
The Dow transports closed 0.6 percent higher, with Kansas City Southern leading most constituents higher.
"Transports held pretty good for much of the day ... a good indication the market is not fearful of the economy weakening further," said Peter Cardillo, chief market economist at Rockwell Global Capital. "The 10-year (yield) flirting with 2 percent, never dipped below there. (There's) no panic."
He also noted some short covering ahead of Friday's jobs report.
Read More'Incredibly fearful' Fed braces for jobs report
Materials gained 1 percent to lead the S&P higher. Earlier, the index failed to hold gains as energy turned lower, following crude and brent in giving up sharp morning gains. Crude settled down 35 cents at $44.74 a barrel. Utilities and telecommunications were the greatest laggards.
Apple closed off session lows, down 0.65 percent, after briefly falling 2.7 percent. The iShares Nasdaq Biotechnology ETF (IBB) closed up 0.75 percent, more than recovering a 2 percent intraday decline.
The major averages turned lower after a positive open on the back of slight gains in the futures market.
"We're just continuing the pattern of selling into rallies," said Peter Boockvar, chief market analyst at The Lindsey Group. ISM "is a wake up call that the U.S. economy is very bifurcated. Also, (the stock market is) jockeying ahead of payrolls tomorrow."
The monthly nonfarm payrolls report is due Friday at 8:30 a.m., ET.
The key economic report out Thursday, the , fell to the lowest level since May 2013 at 50.2, a decline from August's 51.1 print.
Guy LeBas, chief fixed income strategist at Janney Montgomery Scott, expected a read of 50.1. "Most of the manufacturing indices have had a rough summer period and the ISM is no different," he said. It shows "how negative low energy prices have been for the manufacturing sector."
"It seems the benefit of low energy prices to the consumer is being dwarfed by impact to the industry," LeBas said.
Stocks dipped following the release of the report.
The ISM manufacturing data is "indicative of the sector moving towards contraction at this point," Cardillo said. "The ISM was certainly very disappointing and taking stocks out of the surge,"
"I think the market is probably going to stay on the jittery side, looking ahead to jobs," he said. "We'll probably just linger around these levels until we get earnings season out of the way."
Other economic reports out Thursday continued to show strength in the housing and auto sectors.
August construction spending rose to its highest level since 2008, driven by residential projects.
September auto sales came in at an 18.17 million, the highest run rate since July 2005, Autodata said. General Motors, Ford Motor, and the U.S. operations of Fiat Chrysler Automobiles reported a jump in September sales as cheap gasoline and ultra-low interest rates drove demand for sport utility vehicles and pickup trucks.
"Pretty much everything involving the consumer is positive," said Doug Cote, chief market strategist at Voya Investment Management.
Initial jobless claims showed a slight increase to 277,000. The September U.S. Markit manufacturing PMI came in at 53.1.
The number of announced layoffs by U.S.-based companies surged 43 percent in September from the previous month, driven by job cuts at Hewlett-Packard, global outplacement firm Challenger, Gray & Christmas reported Thursday.
The U.S. dollar traded mildly lower against major world currencies, with the euro below $1.12 and the yen at 119.94 yen against the greenback.
Treasury yields edged higher, with the 10-year yield at 2.04 percent, after hitting 2.00 for the first time since Aug. 24. The traded near 0.64 percent.
San Francisco Federal Reserve Bank President John Williams on Thursday renewed, in prepared remarks, his call for an interest-rate hike "sometime later this year," citing near-full employment and rapidly rising house prices that may be a sign of excessive economic optimism, Reuters reported.
Richmond Fed President Jeffrey Lacker said in an interview with The Wall Street Journal that an October rate rise is still possible and that strong consumer spending shows a rate rise is needed, Dow Jones reported.
Both Williams and Lacker are voting members of the Federal Reserve.
Stocks rallied about 1.5 percent or more Wednesday but were still about 7 percent lower for the third quarter, their worst in four years.
"We were very, very oversold on a short-term basis," said Lance Roberts, head of Streettalklive.com. "It very much looked like institutions coming in to fill orders than sustained buying."
"We're still oversold. I do think (we get) a rally in the next few days," he said. Longer-term, "we are building a very defined downtrend at the moment. We're creating this downward trend in prices, more inclined to decline."
Read MoreWhat's next for stocks after worst quarter in four years
The CBOE Volatility Index (.VIX), widely considered the best gauge of fear in the market, traded below 23.
Randy Frederick, director of trading and derivatives at Charles Schwab, doesn't think the VIX will fall below 20 until after the Federal Reserve's meeting Oct. 27 to 28.
"The VIX is reflecting we still have questionable economic data from around the world. We don't know if the government is going to keep operating through the end of the year," he said. "There are a whole lot of things culminating in Q4 that are keeping anxiety high."
Congress approved legislation Wednesday that keeps the federal government in operation until Dec. 11.
Major U.S. Indexes
In Europe, the German DAX fell 1.57 percent and the pan-European Stoxx 600 index closed 0.4 percent lower despite rallies in Asia and Wall Street overnight. In Asia, Japan's Nikkei finished 1.92 percent higher. Volkswagen and Glencore both ended mildly lower.
Chinese stock markets in both the mainland and Hong Kong were closed for the National Day Holiday. On Wednesday, the Shanghai Composite index closed up 0.50 percent.
No major earnings reports were expected Thursday.
Read MoreEarly movers: MKC, CAG, GPS, GOOGL, MSFT, WMT, NOC & more
The Dow Jones Industrial Average closed down 12.69 points, or 0.08 percent, at 16,272.01, with Caterpillar leading decliners and Pfizer the greatest advancer.
The closed up 3.79 points, or 0.20 percent, at 1,923.82, with utilities leading five sectors lower and materials the greatest advancer.
The Nasdaq closed up 6.92 points, or 0.15 percent, at 4,627.08.
Decliners were a touch ahead of advancers on the New York Stock Exchange, with an exchange volume of 979 million and a composite volume of nearly 4.0 billion in the close.
Gold futures settled down $1.50 at $1,113.70 an ounce.
On tap this week:
Friday
8:30 a.m.: Employment; Boston Fed President Eric Rosengren at Boston Fed conference
9 a.m.: Minneapolis Fed President Narayan Kocherlakota
10 a.m.: Factory orders
11 a.m.: Cleveland Fed President Loretta Mester
1:30 p.m.: Fed Vice Chair Stanley Fischer on monetary policy at Boston Fed
More From CNBC.com:
It feels like someone screamed 'fire': Tom LeeHow to make 7 times your money in Apple: GoldmanAs bull fades, consumer stocks keep marching on
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deb90a64830224c6d97cd59f009ff66c | https://www.cnbc.com/2015/10/01/us-russia-tensions-result-in-falling-oil-prices.html | US-Russia tensions result in falling oil prices | US-Russia tensions result in falling oil prices
VIDEO2:0302:03Russia's oil impact Closing Bell
Oil prices fell nearly 1 percent Thursday after being up over 4 percent on the first trading day of the new quarter.
The volatility can be partially attributed to a strain on U.S.-Russia relations over the Syrian war, a strain caused by fundamental disagreement in the Middle East.
"Everyone agrees that ISIS is a regional threat with global implications," said Alex Kliment, director of Eurasia and emerging markets strategy at the Eurasia Group. "But what they disagree on, is how to deal with that."
Kliment told CNBC's "Closing Bell" that the U.S. wants to combat ISIS in the Middle East by weakening and removing Syrian president Bashar Assad. Russia, who is conducting airstrikes in Syria, claims strengthening and securing the president will help the country focus on dealing with the terror group.
VIDEO2:3902:39Strain on US-Russia relations Closing Bell
From the Russians' perspective, Kliment added, securing Assad will make them "the indispensable partner for sorting out Syria." This in turn has implications for the European refugee crisis and can also play to Russia's advantage "as they try to wriggle out of Ukraine-related sanctions later this year."
But the conflict doesn't just stop with just Russia and the U.S.
Saudi Arabia is funding rebels in Syria while Iran is amassing troops. Despite these complexities, Helima Croft, chief strategist at RBC Capital Markets, said the market reaction has been relatively anticlimactic.
"You have some of the biggest oil producers squaring off in this battle," Croft said. "And again, the market reaction still has been quite muted given the stakes that are at play right here."
Croft said the market response is relatively low compared to what past patterns have shown, especially when one considers the geopolitical impacts of the ongoing conflict.
"One of the things you have to remember is we have four active wars in the Middle East right now, and the market really has shrugged it off largely," Croft added. "If this had been a couple years ago, if you did not have a supply overhang in the market, people would be a lot more concerned."
Russia sees 'eye-to-eye' with US on Syria: Lavrov
Croft cited the Arab Spring as well as concerns about Israeli strikes on Iranian nuclear facilities as past geopolitical events to which the market has reacted significantly. Croft said it "took very little" to move crude oil prices in the midst of those events.
"I mean, if you did have some type of headline, something disastrous in terms of Russia striking a U.S. jet, that would obviously push crude prices higher," she said of the current Syrian conflict. "But right now everyone's really waiting to see what happens, how it plays out in Syria."
Croft added that if demand for oil begins to soften, the market for crude oil will become very bearish next year.
— Reuters contributed to this report.
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4508cb2046c76b0377849f3d30dd560a | https://www.cnbc.com/2015/10/01/us-top-court-to-decide-if-eu-can-sue-rj-reynolds-over-money-laundering.html | US top court to decide if EU can sue RJ Reynolds over money-laundering | US top court to decide if EU can sue RJ Reynolds over money-laundering
The U.S. Supreme CourtGary Cameron | Reuters
The U.S. Supreme Court on Thursday agreed to decide whether a lawsuit filed by the European Union accusing cigarette maker R.J. Reynolds of running a global money-laundering scheme involving narcotics smuggling into Europe can move forward.
The case could have broad implications because the court will decide whether plaintiffs can sue under U.S. federal civil racketeering laws for conduct that takes place overseas and, if so, under what circumstances.
The high court will review an April 2014 ruling by the 2nd U.S. Circuit Court of Appeals in New York in favor of the European Union and 26 member states. That ruling permitted the case to proceed i
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e0cf99df259e1fa3d5e78de70afaa64c | https://www.cnbc.com/2015/10/01/us-weekly-jobless-claims-total-277000-vs-270000-estimate.html | US weekly jobless claims total 277,000 vs 270,000 estimate | US weekly jobless claims total 277,000 vs 270,000 estimate
People stand in line to enter a job fair in New York.John Moore | Getty News Images | Getty Images
The number of Americans filing new applications for jobless benefits rose modestly last week and a gauge of its trend fell, pointing to ongoing tightening in the labor market that could push the Federal Reserve to raise interest rates.
Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 277,000 for the week ended Sept. 26, the Labor Department said on Thursday.
It was the 30th straight week that claims remained below the 300,000 threshold, which is usually associated with a strengthening labor market. The Labor Department said there were no special factors impacting last week's claims.
Claims for the prior week were unrevised. Economists polled by Reuters had forecast claims rising to 270,000 last week.
The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, dropped 1,000 to 270,750.
The labor market has remained on solid footing, despite a recent global stock market sell-off, which has boosted expectations the Fed could hike rates this year or in early 2016.
The economy is forecast to have added 203,000 jobs in September, a pace that if held could push the jobless rate lower in the coming months.
Thursday's claims report showed the number of people still receiving benefits after an initial week of aid fell 53,000 to 2.19 million in the week ended Sept. 19.
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5e0e23dc4972082486c20bc28a6aaecd | https://www.cnbc.com/2015/10/01/volkswagen-scandal-creates-brisk-resale-activity-online.html | Volkswagen scandal creates brisk resale activity online | Volkswagen scandal creates brisk resale activity online
The aftermath of Volkswagen's emissions scandal has actually created a busier online marketplace for the German automaker's used diesel vehicles in the United States.
Online used car marketplaces such as Kelley Blue Book or AutoTrader.com have seen a significant upswing in activity surrounding the specific vehicles affected by the scandal. (Tweet This)
On Thursday, Volkswagen revealed that its U.S. sales rose 0.6 percent in September, versus an expected decline of 7.3 percent.
Pre-owned Volkswagen vehicles on sale at a dealership in Fair Lawn, New Jersey, on Sept. 29, 2015.Ritika Shah | CNBC
"On AutoTrader, we are seeing shopping for diesels up," said Michelle Krebs, a senior analyst at AutoTrader, who noted that the volume of shopping activity between private parties, including purchases and negotiations, is up by almost a fifth over the last week.
This comes as overall Volkswagen shopping across the site — including not just private sales but all new and used sales of Volkswagen models — is actually down 1 percent within the same time frame, Krebs said.
AutoTrader's sister company, Kelley Blue Book, is also seeing an increase in Volkswagen-related traffic. KBB.com has seen a 79 percent increase in people looking up the trade-in values of Volkswagens with turbodiesel engines on the site. Comparatively, Volkswagen total trade-in value lookups (including nonturbodiesel, or TDI, vehicles) have increased by only 10 percent.
Crisis stocks – should you catch a crashing car?
Krebs said she believes the market is thriving on potential buyers looking for a good deal.
"We often seen spikes in shopping when something is in the news," she said. "Some of that's just curiosity, checking out what the prices are, but there may well be people that are looking to see if people are selling [used Volkswagen diesels] for cheap."
The U.S. online market trends come as there are indications that diesel Volkswagen sales are declining in Europe. MeinAuto.de, a German online car dealer, saw a 10 percent slip in inquiries last week, according to Deutsche Bank analysts. Additionally, a U.K. price data firm, Glass, said that Volkswagen TDI valuations fell 0.2 percent in September.
It's still too early to tell if U.S. Volkswagen owners are using online marketplaces to unload their used vehicles. Krebs said AutoTrader has no data on any increase in listings just yet.
Despite the increases in shopping activity, Karl Brauer, a senior analyst at Kelley Blue Book, told CNBC that the site hasn't seen any substantial or worthy valuation shifts so far.
"I think we see the potential for some downward slippage of values but probably only along the lines of 3 to 5 percent," he said.
Volkswagen: Political maneuvers behind the wheel?
Volkswagen cut from top sustainability index
VW’s diesel deception: Where were the regulators?
Krebs said the pricing of Volkswagens on AutoTrader.com, both diesel and nondiesel, are a mixed bag.
"It appears private sellers are generally sticking with their prices of the (Volkswagen) diesels they have listed on AutoTrader overall, although they have dropped their listing prices specifically for the Beetle diesel and the Audi A3 diesel some," she said.
In terms of all inventory on the site (new, used and private sales), the Audi A3 and Volkswagen Beetle models saw the steepest decline of all Volkswagen diesel vehicles, dropping $547 and $260 respectively. The Passat diesel dropped only $88.
What you need to know about the Volkswagen scandal
While online marketplaces are bustling, VW dealerships have been less forthcoming about sales trends. Dealerships in the New York City area that spoke with CNBC this week had little to say about how businesses was going and directed inquiries to Volkswagen's corporate office.
Volkswagen is expected to introduce a plan to address its emissions technology problem on or before Oct. 7.
Stifel Nicolaus analyst James Albertine told CNBC last week that Volkswagen had already been on a steady decline because of an aging product line, as well as competition from other automakers that are producing fresh models at overlapping prices.
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2a889dc76a67e0469124249abfc56a42 | https://www.cnbc.com/2015/10/01/wall-street-seeks-bullish-october-start.html | Oil prices were higher this morning on concern about Russian airstrikes in Syria, which targeted opposition fighters there, including at least one group trained by the CIA, eliciting angry protests from American officials. (Reuters & NY Times)
Hurricane Joaquin strengthened last night, as it moved close to the Bahamas. The prospects look increasingly worrisome for the East Coast of the U.S. But regardless of the track, expect heavy rain and possible coastal flooding. (Weather Channel)
President Barack Obama has signed a stopgap funding bill to avoid a government shutdown for now. But when the temporary spending authorization runs out in December, the threat of a shutdown could reemerge. (CNBC)
Twitter (TWTR) co-founder Jack Dorsey, who's been serving as interim CEO for the past three months, is expected to be named the new permanent chief executive as early as today. He's also CEO of Square. (Re/code)
Microsoft (MSFT) and Google (GOOGL) have dismissed all outstanding patent disputes between them, and agreed to collaborate on "certain patent matters." There had been about 20 patent cases outstanding. (Reuters)
Wal-Mart (WMT) plans at its Arkansas headquarters in an effort to cut costs, according to multiple reports. The cuts would make up a small portion of the more than 18,000 people employed there. (Reuters)
The credit card industry's self-imposed deadline for chip-enabled cards is today, but a new survey shows six in 10 American card holders still don't have the new technology in their wallets. (USA Today)
A new analysis finds people who go out of their health insurance networks routinely receive bills anywhere from 118 percent to 1,382 percent higher than what the federal Medicare system gets billed for the same services. (CNBC)
GOP presidential frontrunner Donald Trump, in a CNBC interview, assessed his campaign so far, and addressed what it would take for him to exit the race. But he said: "I'm in this for the long haul."
U.S. automakers release their September sales numbers throughout the morning, with analysts predicting strong gains compared to a year ago.
The Institute for Supply Management issues its September non-manufacturing index at 10 a.m. ET, with the measure of the U.S. services economy expected to come in at 50.8 compared to 51.1 in August.
The government report on August construction spending, out at 10 a.m. ET, is seen rising 0.6 percent on top of July's 0.7 percent gain.
A busy week for Fed speakers continues with a 2:30 p.m. ET speech from San Francisco Fed President John Williams in Salt Lake City, Utah.
Spice maker McCormick (MKC) is among the very few companies out with earnings this morning, while chipmaker Micron Technology (MU) leads the short after-the-bell list.
Standard & Poor's cut its outlook on Gap (GPS) to negative due to the departure of Stefan Larsson as president of its Old Navy unit. Larsson has been named Chief Executive Officer of Ralph Lauren (RL).
Risk adviser Verisk Analytics (VRSK) replaces Joy Global (JOY) in the S&P 500 after the close of trading on Oct. 7. Joy replaces Thoratec Corporation in the S&P MidCap 400 following its acquisition by St. Jude Medical (STJ).
China's state-backed Tsinghua plans to buy a 15 percent stake in U.S. data storage firm Western Digital (WDC), a $3.78 billion deal that could draw regulatory scrutiny amid increased national security concerns.
Northrop Grumman (NOC) won a $3.2 billion Air Force contract for development and maintenance of drones.
Deere (DE) reached a tentative agreement with the United Auto Workers on a six-year contract. The prior agreement between the union and the heavy equipment maker expired Thursday.
Fiat Chrysler (FCAU) workers have rejected a proposed four-year deal with the UAW, despite endorsement from union leaders. The exact final tally was not released.
General Electric (GE) struck deals to sell two of its railroad services operations to Wells Fargo (WFC) and Marmon Holdings. Terms of the two deals were not disclosed.
United Parcel Service (UPS) is investing in tech startup Ally Commerce, which sets up websites for direct sales to consumers.
Facebook (FB) is letting users upload super-short videos to be their profile pictures, as the social networking site refreshes its design and pushes to become the center of your online life.
The $310 million Powerball jackpot was waiting to be claimed on a single ticket purchased in a Shell gas station in southwestern Michigan. The winning numbers were 21-39-40-55-59 and Powerball 17. (NBC News)
Oregon joins Colorado and Washington as the only states with recreational marijuana marketplaces today. Adults 21 and older in Oregon may buy up to a quarter-ounce of cannabis per day. (USA Today)
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382677eb3897de3b0d2d0b3d4d1695a7 | https://www.cnbc.com/2015/10/01/wall-street-starts-new-quarter-eyes-china-fed.html | Wall Street starts new quarter, eyes China, Fed | Wall Street starts new quarter, eyes China, Fed
Traders work on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
U.S. stock index futures indicated a flat to mildly higher open on Thursday, trying for a positive start to the last quarter of the year after the worst one in four years.
Wednesday saw a nearly 2 percent rally, and while most Wall Street strategists believe the stock market will bounce back in the fourth quarter, the potential for headwinds is high.
Topping the list of worries is China, which clearly has a slowing economy, although it is unclear how slow. The market also faces a potentially rocky earnings season, with profits expected to shrink about 3 percent, and traders wondering whether there will be a China chilling effect on corporate outlooks, either directly or indirectly.
Read More What's next for stocks after worst quarter in four years
The other big factor hanging over markets continues to be the Fed, which could potentially raise interest rates for the first time in nine years at one of two meetings — October 28 or December 16.
The fourth quarter is usually a positive time for stocks, so if the market does not rally as some analysts suspect, the debate will turn to whether 2016 will bring the first bear market in seven years.
On the data front, initial jobless claims showed a slight increase to 277,000.
Construction spending and ISM manufacturing data are due at 10:00 a.m ET. Data for light vehicle sales will also be released Thursday.
The number of announced layoffs by U.S.-based companies surged 43 percent in September from the previous month, driven by job cuts at Hewlett-Packard, global outplacement firm Challenger, Gray & Christmas reported Thursday.
In oil markets, Brent crude traded up 1.3 percent just below $49 a barrel, while U.S. crude was around $46.19 a barrel, up 2 percent.
In Europe, the pan-European Stoxx 600 index was around 0.4 percent higher on Thursday, boosted by rallies in Asia and Wall Street overnight. In Asia, Japan's Nikkei finished 1.92 percent higher.
Chinese stock markets in both the mainland and Hong Kong were closed for the National Day Holiday. On Wednesday, the Shanghai Composite index closed up 0.50 percent.
No significant earnings are expected today.
Read More Early movers: MKC, CAG, GPS, GOOGL, MSFT, WMT, NOC & more
--CNBC's Patti Domm contributed to this report.
CORRECTION: An earlier version misstated the day the Shanghai composite closed up 0.5 percent.
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458fb047e5cfd3c32db4598d735098c4 | https://www.cnbc.com/2015/10/01/what-the-charts-are-saying-for-q4.html | What the charts are saying for Q4 | What the charts are saying for Q4
Global financial markets have shifted into October and the final quarter of the year on edge, as investors look to tweak their portfolios for the last three months of the year.
Having come off the back of the worst quarter since 2011, European and U.S. markets have struggled for direction after a quarter and a month most investors would prefer to forget, as concerns about the Chinese economy, weak commodity prices and uncertainty about the direction of U.S. monetary policy weighed on sentiment.
Technical analysts are now looking at the fourth quarter with relative optimism, with hopes high for a a year-end rally across a number of sectors … but not before October sees a bit more selling.
Read MoreCiti strategist sees uber-bull move for end of 2015
There are a number of key dates to look out for when eyeing more volatility on the Dow Jones industrial average, notably October 5th and October 12th according to technician and chief market strategist at Signal Pro, Sandy Jadeja.
But after then, "this (volatility) lasts until 23rd October, so any rallies that I see at the moment, short-term traders just look to sell into these rallies," he said.
"I think once this has been flushed out, this is going to be a really great year to pick up some bargains. I am going in 2016 as a bull," he added.
Read MoreWhat's next for stocks after worst quarter in four years
Head of Technical Analysis at Cornerstone Macro, Carter Worth, said it would take some time to "change the psyche" of the markets after money has been lost, agreeing that markets need more time to heal before a "buy" signal kicks in.
UBS strategist Julian Emanuel said the investment bank had cut its 2015 year-end price target to 2,125 from 2,225.
He expects strength in equities during the "seasonally favorable" fourth quarter given the consistently solid U.S. economic backdrop, low rates and abundant corporate cash.
"But the uncertainty overhang of politics in Washington is expected to delay the market's moving to new high ground until 2016, as was the case during 2011's ultimately resolved Debt Ceiling Crisis," Emanuel said.
U.S. oil prices tumbled below $40 a barrel in august for the first time since 2009 as U.S. oil producers remained resilient in their efforts to pump crude near record levels.
Jadeja predicts that U.S. crude may dip below the 2003 level of around $37 per barrel, but he is bullish long term.
"We may drop a bit below, any oil stocks or the oil sector until November. Seasonally that has been very weak. But coming into November we could go down to $33, but long term I am going to become a buyer of oil," he said.
Jadeja said 6,250 is the key level to watch on London's FTSE 100 and anticipates a bullish scenario from the end of the month and the start of November. The FTSE gained around 0.8 percent on Thursday to trade around 6,112.
Read MoreWhy stocks won't recover for positive 2015: Blitzer
"On the FTSE 100, I would like to see the market close at least for three days above the 6,250 level, that is the key retracement on the upside," Jadeja said.
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86ae04d25462e87fe61168a2065d3040 | https://www.cnbc.com/2015/10/01/what-you-should-do-if-youve-won-the-powerball-jackpot.html | What You Should Do If You've Won the Powerball Jackpot | What You Should Do If You've Won the Powerball Jackpot
VIDEO0:3100:31Powerball jackpot claims a winnerAdvisor Insight
Do you feel lucky?
Check your lottery ticket. There is a $310.5 million Powerball lottery jackpot ticket out there waiting to be claimed that was sold at a gas station in Michigan.
Like almost anyone else, the winner might visit a real estate agent to purchase a new home and then call a travel agent to book a luxurious vacation. They might also decide to pay a visit to a dealership to buy a fancy car.
While each of these suddenly affordable opportunities would tempt a newly minted megamillionaire, none would be the best initial course of action.
Just look at the history of lottery winners. Many ended up in debt — or worse, went broke because they mismanaged their newfound riches.
Easy money can do that to people. It makes them blind to what steps to take to ensure that those funds last a lifetime — and, for their loved ones' sake, beyond. Rather than being prudent, many of the suddenly super-rich feel obligated to make that big purchase or, for some reason, agree to provide financial support for a third cousin of their step-brother-in-law.
But instead of visiting that car dealer or travel agent, the first thing anyone lucky enough to win a lottery jackpot should do is to find a trusted, qualified financial planner.
Financial planners come in all shapes and sizes, with different credentials, levels of experience, knowledge bases, legal requirements and compensation models. Anyone seeking a planner needs to be armed with the correct questions to ensure that the professional chosen is working in your interest and capable of addressing all your specific financial needs.
The Financial Planning Association (FPA), a professional membership organization for the financial planning community, is a good place to find a certified financial planner (CFP).
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FPA member planners can help people assess their financial health, set realistic financial and personal goals, and develop comprehensive plans to meet those goals.
The FPA's "Choosing a CFP Professional" worksheet, available online at Plannersearch.org, lists 35 questions that will provide an individual with a fuller understanding of planners' capabilities and a clearer picture of how they operate.
All planners must be able to fairly and fully disclose information about themselves and their firms. The worksheet addresses:
Designations and licenses Education Experience Fees and compensation Services and work philosophy
Now that you understand that the first step in managing your windfall is a visit with a financial planner, what are some of the other things you need to do to ensure the longevity of your lottery winnings?
Here are six further steps I would recommend for a lottery winner or anyone else coming into sudden wealth:
With the help of a financial planner, take stock of your values. How do you want to live your life? For some, suddenly having money doesn't make them want to change much of anything. Others aspire to new things and experiences. What's important is to find what's important to you — and not just materially.
With a certified public accountant, address what will be pressing income-tax issues. Take advantage of available tax opportunities, which may include starting a business (something some people aspire to when they hit it big).
Contact an attorney to establish appropriate trust vehicles to assure that assets are protected from estate taxes.
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As part of an estate plan that you craft with an attorney, think about family members or organizations you want to benefit now or in the future. Establish target plans for how, and how much, you want to share your wealth.
In the case of charities you'd like to benefit, charitable lead or charitable remainder trusts may be considered to create tax benefits today while also benefiting the organization. A charitable lead trust donates a portion of the trust's income to charities today, leaving the remainder to your specific beneficiaries. A charitable remainder trust provides you income throughout your lifetime, leaving the remainder to a charity upon your death.
In collaboration with your financial planner, align your investment portfolio with your goals and objectives. With your ability to create an ongoing stream of income benefits to yourself and others, you'll want to assure that you have a diversified portfolio that is well-managed, with strict accountability to the things that matter to you. Always keep in mind your ability to truly make a difference in the world by being a good steward of your own resources.
It all sounds like a great deal of work, and it is. That's why you need a financial professional. Lean on your planner to guide you in your financial decisions. Doing so will free you up — and allow you to take that fabulous vacation with peace of mind
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a206fdd14ef2f7d4dceabef54c33fdf9 | https://www.cnbc.com/2015/10/01/why-tech-stocks-tend-to-thrive-in-q4.html | Why tech stocks tend to thrive in Q4 | Why tech stocks tend to thrive in Q4
The fourth quarter is traditionally a good one for stocks, and an even better one for the technology sector.
Since 1990, the has climbed an average of 4.9 percent in the fourth quarter, according to Sam Stovall, U.S. equity strategist at S&P Capital IQ.
Among the 10 sectors within the broad gauge, however, technology tends to be the winner, with an average gain of 6.6 percent. The sector rose nearly 80 percent of the time.
So, what traditionally happens in Q4 when tech is down in Q3? After all, the sector declined 4.1 percent in this year's third quarter, its worst performance since the fourth quarter of 2012.
Traders work on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
Since 1995, the technology sector has climbed an average of 4.6 percent, and risen 71 percent of the time—or five out of seven instances—according to Kensho, a data analytics platform for financial markets.
There are a number of reasons the tech sector typically marches higher in the final months of the year. For one, the category tends to lead in up markets. So, in Q4, tech benefits as money managers shift money to winners and away from laggards before year-end.
A second reason strategists mention: Budget flush. If companies haven't spent money on new technologies yet then they are likely to do so before the year comes to a close.
Finally, consumer technologies — all the latest and greatest smartphones, tablets and other gadgets — always come into focus during the holidays.
Paul Hickey of Bespoke Investment Group recommends tech investors looking for growth stocks with attractive technical patterns consider three names right now: Facebook, Amazon and Palo Alto Networks.
Power Play: Why Q4 will be better for investors
Emerging markets suffer heaviest outflows since Q4 2008
Before committing capital, Stovall issues two caveats: One, history serves as guide, but never as gospel for investors.
And secondly, the sector is trading at 15.6 times 2015 earnings, or basically in line with the market. In other words, valuation is not especially compelling.
Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.
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f799a57bef42080c80e4dfecdcaa80bd | https://www.cnbc.com/2015/10/01/world-banks-kim-growth-slower-for-emerging-markets.html | World Bank's Kim: Growth slower for emerging markets | World Bank's Kim: Growth slower for emerging markets
VIDEO2:3402:34World Bank: Fed should wait to hikeSquawk Alley
Jim Yong Kim said Thursday that emerging markets will experience slower growth in the near future.
"There are a lot of headwinds," the World Bank president told CNBC's "Squawk Alley." "A big part of it is the fact that commodity prices are down and continue to be down, and a lot of it has to do with the slowing growth rate in China."
Earlier on Thursday, the Caixin/Markit PMI index showed manufacturing in the region dropped to a new 6 1/2-year low of 47.2, ticking down from August's reading of 47.3 but still better than an earlier flash estimate of 47.
Kim also said that a possible Federal Reserve rate hike would limit the access to capital for emerging markets. "All these things are giving us a sense that growth will be slower globally, but especially in the emerging markets."
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Kim echoed the remarks made by IMF Managing Director Christine Lagarde, who on Wednesday told CNBC that emerging markets will likely see their fifth-consecutive year of declining growth rates.
Still, Richmond Fed President Jeffrey Lacker, a voting member, told The Wall Street Journal that the central bank could still raise interest rates this month.
"I don't see why not," he said. "We will have another labor market report. Presumably that will move us further toward labor market improvement."
The Fed kept interest rates low at its last meeting, a decision that gave emerging markets some breathing room to reform their economies further, Kim told The Associated Press on Sept. 24.
Jim Yong Kim speaking at the 2015 CGI Annual Meeting in New York.Adam Jeffery | CNBC
However, Kim warned that raising rates this year could have dire consequences for emerging market economies, especially those tied closely to commodities.
"Any of the oil and gas producers are already in a terrible situation [and] it looks like, to us, that the price will be down for a long time," he said. "And when Iran goes online, we expect the price of oil to go down another $10 a barrel."
U.S. crude prices have fallen more than 45 percent in the last year and over 20 percent in 2015.
— CNBC's Nyshka Chandran contributed to this report.
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a3a3d6f36c9f8c45ae2197e30c693bf4 | https://www.cnbc.com/2015/10/01/you-know-money-yeah-right.html | You know money ... yeah, right! | You know money ... yeah, right!
Do you have some basic or advanced financial knowledge? If so, you are way ahead of other Americans.
Let's be honest. Money doesn't come with a set of instructions. To make it even more "fun," the world has become way more complex financially. That's why some basic financial knowledge can go a long way.
Overall, most people lack any sort of financial savvy. Some people rack up big credit card balances and have no household budget, while others fail to plan ahead or participate in qualified retirement accounts. Additionally, many people leave money on the table by not taking full advantage of matching contributions in their company's 401(k) plans (which is free money, folks).
With all this said, take our quiz to see how good you are at managing your finances.
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