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Jun 22, 2018

Anthony Albanese lays out his Labor manifesto: reform, growth, aspiration | Australia news | The Guardian

theguardian.com

Anthony Albanese lays out his Labor manifesto: reform, growth, aspiration | Australia news

Katharine Murphy

Anthony Albanese has laid out his own Labor manifesto, declaring the ALP must be the party of reform, of economic growth, of aspiration, of an empowered grassroots membership – and a party prepared to be bipartisan in the national interest.
The Labor frontbencher has taken the opportunity of delivering the Gough Whitlam address on Friday night to articulate his own broad-ranging vision for Labor in 2018, noting the ALP can’t expect to “slide into government off the back of our opponent’s failures” and saying it is not good enough to say to voters “elect us because the other mob are useless”.
The speech, was circulated before its delivery, and contained no direct criticism of Bill Shorten, or of the party’s current policy agenda.
But it said Labor “must be determined to avoid allowing tactics to marginalise strategy” and that the party must “stick to our values and craft responses to the real challenges that affect Australians in their daily lives”.
Albanese said Labor must always be optimistic, and outline “a vision of progress”. He emphatically endorsed the Hawke-Keating reforms of floating the dollar, reducing tariffs “and opening the Australian economy to the world” as the bedrock of 27 years of uninterrupted economic growth.
The frontbencher said those reforms – now criticised by some in the left and the labour movement – delivered continuing benefits to working Australians, including the creation of Medicare, compulsory superannuation, the expansion of university education and the doubling of year 12 completion rates. “Our national challenge is to continue to drive sustained economic growth.”
Albanese said Labor had to recognise that it could not stop change, whether it was demographic, technological, or societal, and it could only manage change in the national interest. He said the objective had to be bringing “the community on the journey, rather than pander[ing] to fear of change”.
He also noted that many national policy challenges – climate change, education and infrastructure – “would be best solved by bipartisanship” rather than rolling tit-for-tat, but in calling for more constructive engagement, he noted the Turnbull government “can barely achieve bipartisanship within their own Coalition and are not capable of the magnanimous generosity that bipartisanship requires”.
He said successful Labor governments had always collaborated with the business sector, civil society and the trade union movement.
Albanese said Labor must always “cherish” its historical links with unions, but he warned the party also had to understand that Whitlam’s reforms allowed generations of Australians from working class backgrounds to attend university, “work in the professions and non-unionised industries, or start their own business”.
“We cannot afford to ignore this demographic,” he said, noting that many people were no longer union members.
With the union movement in a full throated campaign to change the rules, in part directed at shaping policy outcomes at the ALP national conference in December, Albanese noted: “This is not 1950, when most Australians were members of trade unions.”
In a provocation to Shorten’s right faction, Albanese backed party reform – saying grass roots members must be given more direct say in elections for public office and internal positions, and “maintain our internal processes that emphasise policy making from the bottom up”.
He noted that the successful push to legalise marriage equality came from the community “and made its way up through the party and ultimately through parliament and into law”.
Albanese also put a toe in the water before a debate about refugee policy expected at the national conference, noting “you can protect our borders without losing our national soul”.
“No mainstream politician believes in open borders, but a policy that uses its prolonged treatment of detained people as an ongoing deterrent to others has a deep flaw at its heart.”
He ended his contribution by declaring Labor was “not a grab bag of ugly neo-cons, weak liberals and agrarian socialists fighting like cats in a bag.
“We are not a single issue party that puts abstract policy ahead of the working lives of people. We are not bitter, frightened xenophobes.
“As Gough Whitlam understood, if changing lives for the better is your ambition, Labor remains the only game in town, the party of mainstream Australia, the party of courage and ambition for our nation, the party of the fair go.”

Battle lines drawn as Turnbull and Shorten try out election rallying cries | Katharine Murphy | Australia news | The Guardian.

theguardian.com

Battle lines drawn as Turnbull and Shorten try out election rallying cries | Katharine Murphy | Australia news

Katharine Murphy

After an important week in Canberra, and this was one, political editors tend to observe the shift in the tectonic plates of politics, and divine various meanings. But this weekend, I want you to come with me to the seat of Indi in north-eastern Victoria. The seat is held by the independent Cathy McGowan.
Before we head there, a brief recap in the event you’ve missed the parliamentary goings on. The political week just gone was all about the major parties setting up the fight they want to have at the next election about income tax cuts, and their competing economic visions for the country.
Now, to McGowan, who is an assiduous local member. After Scott Morrison handed down the budget in May, with its $144bn tax package, the member for Indi set about surveying her constituents to help inform her position on the inevitable parliamentary vote about the tax cuts.
Post budget she clocked up almost 1,000 constituent contacts through online surveys, postcards, listening posts, social media, emails, letters, supermarket conversations and focus groups. To ensure she’d tapped the views of young voters, she met with 134 young people in Mansfield, Wangaratta, Wodonga and Benalla before they went to school or Tafe or uni or work.
McGowan says 71.3% of residents in Indi earn less than $52,000, and only six companies have a turnover of more than $50m. When it came to tax – both company and personal – constituent feedback was clear.
She illustrates the local impressions with two examples. One told her: “There should be no tax concessions for big business. This money can be better spent on education and hospitals/medicine and infrastructure.”
“Low to middle income earners need relief not people earning over 100K. Small business needs the relief; it is hard enough to employ people as it is, so help is needed here – you cannot guarantee that big business such as the banks won’t just pass it onto shareholders and they will be the only ones to benefit”.
Another said: “Flattening out our progressive tax rate so that minimum wage earners pay the same rate of tax as high-income earners up to $200,000 is patently unfair. This proposed change will lock in further inequality in the system for decades to come and this is at a time when income inequality is more pronounced than at any other time in living memory”.
So the moral of this story is McGowan – one of the handful of MPs outside a party structure, and in fact entirely indifferent to the media/politico pontification complex – formed an independent judgment about the package informed by the views of her constituents.
Given the package had been bowled up to parliament by the government in a take it all or leave it form, McGowan chose to leave it.
She voted no.
The point of referencing McGowan is not to suggest she’s an outlier. The population of Indi would be very similar in demographic terms to the population of many electorates currently held by the Nationals. Yet the Nationals took a different judgment, signing on to the budget package with a hearty hear hear.
Electorates with similar demographics also make up the One Nation heartland, and yet Pauline Hanson also voted yes to a round of applause from Sydney’s Daily Telegraph. Onya Pauline.
One more touchstone of community sentiment before I broaden our field of vision. Rebekha Sharkie, the Centre Alliance lower house MP, (who is currently fighting one of the “super Saturday” byelections in the South Australian seat of Mayo), was “very clear”, according to her colleague Rex Patrick, that she did not want stage three of the tax cuts to go ahead (the tranche that gives cash back to high income earners).
Stage three has, in fact, been legislated, because Sharkie’s Senate colleagues voted for the whole package, having been spooked by the government’s take-it-or-leave-it game. But Sharkie’s default disposition is interesting to me, because I know, like McGowan, she is constantly polling her constituents, and right now, she’s out on the hustings, talking to voters, fighting to hold her seat.
Having touched down in Victoria and South Australia, let’s now grab a national perspective on voter perceptions of the tax plan by noting what our fortnightly Guardian Essential poll told us this week.
The poll said 79% of a sample of 1,027 voters supported stage one of the income tax cuts, which are directed at low and middle income earners, while only 37% supported stage three, which involves flattening the tax scales so workers earning between $40,000 and $200,000 pay the same rate. It also showed a five-point increase in support for Bill Shorten’s alternative tax plan since the budget.
So what can we conclude about all of this?
We can say the Turnbull government won a big procedural battle this week, legislating its budget centrepiece, creating a springboard for the Coalition’s re-election campaign. This is no small thing. The government has given itself a framework to get back in the fight.
We can also note that conventional wisdom suggests Labor’s strategy of saying no to stage one and two of the tax plan is risky. What political party in its right mind rolls back a tax cut once it’s legislated? Surely that’s asking for trouble.
So yes, it is risky, but a few caveats need to be borne in mind.
One: the field evidence suggesting the top end tax cuts are not very popular.
Two: no one will experience the tax cuts Labor is intent on repealing until 2022-23, and then in 2024-25. Low and middle income earners won’t even experience stage one before the next federal election, because it will come to them as a rebate some time after next July. None of it is tangible.
Three: if voters can engage meaningfully with hypothetical tax cuts, they will learn Labor is promising low and middle income earners a more generous tax rebate than the government’s.
So while Labor is engaging in risky business by promising to take something away from people who probably don’t perceive themselves as high-income earners (because who does?) – the Coalition is also in risky territory once this debate hits the business end, and people begin to focus on the respective offerings. Voters on the frontline of Australia’s big wages squeeze will twig that Labor is promising a better short-term offer.
Perhaps that’s why the prime minister was so high concept this week, talking loftily about aspiration and workers living their dreams, harking back to a comforting Howardism, rather than arraying the tin-tacks of his offering, which according to some government MPs, voters haven’t yet grasped.
I get why framing matters. Voters in our hyperconnected age are so bombarded with inputs it can be hard to make sense of anything, so the vibe of the thing is important. Turnbull is also not the only player indulging in heuristics, Labor was flat out this week lobbing its own rule-of-thumb, casting the prime minister as a snob, as arrogant, as out of touch, the merchant of Point Piper.
But I suspect when it comes to income tax, swinging voters will screen out the noise and look at the fine print.
They will ask “does this benefit me?” and when and if their household circumstances permit the luxury of broader reflection, they’ll think about what’s best for the country. Depending on where their default inclinations lie, they might be troubled by Labor’s dream-crushing taxes (to borrow a Turnbullism) or they might worry whether lower taxes on higher income earners is fair, and whether it inevitably means less services.
Who says modern politics is about nothing? What a fascinating battle this will be.

Gold demand at Swiss refineries strongest since 2013, Maguire tells KWN | GATA | THE GATA DISPATCH.

Gold demand at Swiss refineries strongest since 2013, Maguire tells KWN

Submitted by cpowell on 09:30PM ET Friday, June 22, 2018. Section: Daily Dispatches 5:30p ET Friday, June 22, 2018
Dear Friend of GATA and Gold:
London metals trader Andrew Maquire, interviewed today by King World News, says Swiss gold kilobar refiners are booked for full production through July and likely soon will be fully booked through August as well. The Swiss refiners, Maguire says, tell him that gold demand has not been this strong since 2013. Maquire's interview is excerpted at KWN here:
https://kingworldnews.com/whistleblower-andrew-maguire-all-swiss-gold-ki...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

Facebook's Stock May Rise By More 10% Short-Term | Investopedia

investopedia.com

Facebook's Stock May Rise By More 10% Short-Term

Michael Kramer

(Note: The author of this fundamental analysis is a financial writer and portfolio manager.)
Facebook Inc.'s (FB) stock has surged to a record high over the past few days and is now up over 13.5% on the year, and up nearly 25% since the end of March. But now traders are betting shares of Facebook will continue to soar, perhaps more than 10% by the middle of July, from its current price of around $200.
The bullish optimism comes as shares of the social media company break out, based on technical analysis.
FB Chart
FB data by YCharts

A Rise of More Than 10%

Open interest levels for the $220 and $230 strike price calls for expiration on July 20 have been steadily rising over the past couple of days. The $220 calls have an open interest of nearly 20,000 contracts and trade at roughly $0.56 per contract. The stock would need to increase to over $220 by options expiration for a buyer of those calls to break even. Meanwhile, the $230 calls have also seen a surge in open interest, with roughly 20,000 open contracts and trade for $0.25. A buyer of the calls would need the stock to rise to over $230 by expiration to break even, a rise of over 15%. These are two notable bets coming ahead of Facebook's second-quarter results.

The long straddle options strategy is implying that Facebook's stock rises or falls by about 5% from the $200 strike price by expiration in July.  It places the stock in a trading range between $190 and $210, roughly. But the calls outweigh puts by almost 2 to 1, with nearly 39,000 open call contracts to approximately 24,000 open put contracts.

Strong Uptrend

The technical chart shows why some traders may be getting bullish on Facebook ahead of quarterly results. The stock broke out, rising above a technical resistance level at $195.50, the previous highs. Additionally, the stock has been riding a strong trendline higher, since the stock hit its lows at the end of March. But the relative strength index (RSI) is trading at near overbought levels, at 68, which suggests shares may be due to consolidate.

Big Forecast

Analysts are looking for Facebook to have a strong second quarter, with earnings expected to rise by over 26% to $1.67 per share. Meanwhile, revenue is expected to increase by almost 43% to $13.3 billion. The outlook for the full year is supposed to be strong as well, with earnings forecast to rise by 23% to $7.58 per share, on revenue growth of almost 40% to $56.7 billion.
With Facebook up so much from its lows, the question is whether the stock can maintain all its recent momentum.
Michael Kramer is the founder of Mott Capital Management LLC, a registered investment adviser, and the manager of the company's actively managed, long-only Thematic Growth Portfolio. Kramer typically buys and holds stocks for a duration of three to five years. Click here for Kramer's bio and his portfolio's holdingsInformation presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future performance.
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How Twitter and Square Burned Short Sellers | Investopedia

investopedia.com

How Twitter and Square Burned Short Sellers

Mark Kolakowski

The risk with short sales of stock is that losses are theoretically unlimited. Among the stocks that have burned the short sellers in a big way so far this year—to the tune of $2 billion in paper losses—are social media platform Twitter Inc. (TWTR) and payments processor Square Inc. (SQ), per calculations by financial analytics firm S3 Partners as reported by MarketWatch.
These speculators are reacting differently. "Twitter short sellers are selling into the stock’s rally and increasing their short exposure substantially in June, while Square short sellers are buying to cover some of their short positions" is what Ihor Dusaniwsky, the managing director of predictive analytics at S3 Partners, told MarketWatch. Both companies were founded by tech entrepreneur Jack Dorsey.

Short Sellers' Rising Twitter, Square Losses

Stock YTD Stock Gain Short Sale Losses
Twitter 88% $1.1 billion
Square 94% $0.9 billion
Source: MarketWatch; stock price gains through June 21, short sale losses per S3 Partners as of June 20.

Twitter

Twitter became a target of the short sellers based on a stock price that fell by 47% since going public in November 2013, through the end of 2017. However, it posted its first-ever quarterly profit in the last quarter of 2017, followed by a profitable first quarter of 2018. The short sellers apparently were, and remain, unimpressed. A hefty forward P/E ratio of 53 times projected earnings, per Yahoo Finance, is another cause for their pessimism.
Short interest in the stock was worth about $2.1 billion as of June 20, up from under $1 billion at the start of 2018, per S3 Partners, as reported by MarketWatch. The value of the short interest in Twitter has been driven upward, in part, by the soaring price of its shares, The Wall Street Journal notes.
Meanwhile, J.P. Morgan has raised its price target on Twitter to $50 per share, implying a gain of 10.5% from the June 21 close, per U.S. News & World Report. They indicate that Twitter is finally gaining significant traction among advertisers.
A recent jump in the price of Twitter was spurred by the announcement that it would be added to the S&P 500 Index (SPX), according to another Journal report. Smart beta guru Rob Arnott warns that new additions to the major indexes tend to be overpriced and thus likely to underperform subsequently. (See also: Why Smart Beta Stocks Can Crush the Market.)

Square

Square rose by 165% from its November 2015 IPO through 2017, though it has yet to turn an annual profit. Its forward P/E ratio of 86 times projected earnings, per Yahoo Finance, represents an extremely rosy view of the future that the short sellers aren't buying. Short interest in Square was worth about $2.1 billion as of June 20, versus $1.1 billion at the beginning of the year, per S3.
The decision to facilitate bitcoin transactions starting in November has sparked some enthusiasm for Square, as has its acquisition of website builder Weebly, Bloomberg reports. Adding Weebly is expected to extend Square's footprint in e-commerce, by assisting small merchants in opening online storefronts, according to Barron's.
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8 Young Tech Stocks That Are Crushing The Market | Investopedia

investopedia.com

8 Young Tech Stocks That Are Crushing The Market

Mark Kolakowski

Tech-oriented investors who worry about limits to growth among the biggest names, such as members of the FAANG and FAAMG groups, might do well to consider some of the smaller, up-and-coming players, per MarketWatch columnist Philip Van Doorn. Particularly noteworthy are a group of young tech companies tracked by Bessemer Venture Partners that are delivering eye-popping gains in 2018, partly driven by brisk sales growth.
Source: MarketWatch; stock price gains through June 21; sales growth is on a per-share basis for last 12 reported months as computed by Bessemer Venture Partners using FactSet data.

Selection Criteria

These companies are among the 10 members of the Bessemer Venture Partners Cloud Index that have achieved sales per share growth of 30% or more during their last 12 reported months. The index contains 50 public companies that earn more than half their revenues from cloud computing products and services. Companies in the index typically provide business-oriented software through the cloud, and collect recurring revenues on a subscription basis.

Extreme Outperformance

The BVP Cloud Index was created in 2013, with data back tested to the start of 2011 and weighted by market capitalization. From January 2011 through May 2018, the index was up by a staggering 550%, about 5 times the respective gains for the S&P 500 Index (SPX) and the Dow Jones Industrial Average (DJIA), and roughly 3 times the gain for the Nasdaq Composite Index. (For more, see also: 6 Cloud Stocks Poised for Rapid Growth.)

Wix.com

Wix.com serves small businesses and individuals with tools and templates that facilitate the design and management of websites. It also offers web hosting, support for blogs and social network pages, e-commerce and appointment applications, plus marketing tools such as Google Analytics and mailing list management. In short, the company attempts to offer one-stop-shopping for clients who require a full range of support services related to their online presence.
While increasing sales rapidly, the company has yet to turn a profit. The consensus estimate for the current fiscal quarter is EPS of 14 cents, which would be its first quarterly profit ever, per MarketWatch. The stock trades at a hefty forward P/E ratio of 87 times the consensus EPS estimate for fiscal 2019.

Zendesk

Zendesk provides a platform for customer support, customer service and IT help desk departments. It facilitates delivery of these support services through multiple media, including voice, messaging, chat, e-mail, and user forums, while also offering ticketing, tracking, security and analytics.
Zendesk also has not posted a profit so far, although the consensus estimate calls for EPS to be just barely positive in current quarter, at less than 1 cent. The forward P/E based on the 2019 consensus estimate is a stratospheric 187 times earnings.
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MAKE IT | CNBC


Daily dose of inspiration:
"I will give you a little secret: Nobody quits anything they are good at because it is fun to be good. It is fun to be one of the best."
- Mark Cuban, owner of the Dallas Mavericks and a 'Shark Tank' investor
3 things to help you make it.
1.
Top NBA Draft pick used $100 from summer job to go to basketball camp when he was 12
Deandre Ayton, selected by the Phoenix Suns as the first pick of the 2018 NBA draft, played soccer and the drums until switching to basketball at 12 years old.
Read More »
2.
Stanford researchers: 'Follow your passion' advice could make you less successful
Mantras like these can cause people to give up and miss out on new interests.
Read More »
3.
2018 could be a record year for new female board members
Women are on track to gain a record number of board seats by year-end, according to an analysis by corporate governance firm Institutional Shareholder Services.
Read More »

Asia, Europe and U.S. Stock Markets at Close Report | CNBC

                                                                              ASIA
 
cnbc.com

Asia markets close mixed on trade, economic concerns; OPEC meeting ahead

Cheang Ming

Major Asian markets closed mixed on Friday, following losses seen on Wall Street and amid investor concerns about the trade dispute between the U.S. and China.
Japan led losses in Asia: The benchmark Nikkei 225 slid 0.78 percent, or 176.21 points, to close at 22,516.83, but was off its intraday low. Losses were seen across most sectors, with automaker stocks down 1.43 percent and among the day's worst-performing sectors.
Early declines in South Korea reversed, with the Kospi finishing up 0.83 percent at 2,357.22.
Over in Australia, the S&P/ASX 200 edged lower by 0.11 percent to close at 6,225.20 in choppy trade. Heavily weighted financials rose, but those gains were offset by declines in most other sectors. Telecommunications stocks fell as Telstra declined for the third straight day.
Greater China markets were in positive territory. On the mainland, the Shanghai composite rose 0.49 percent to close at 2,889.95. The smaller Shenzhen composite advanced 1.21 percent. Hong Kong's Hang Seng Index, meanwhile, edged higher by 0.3 percent by 3:14 p.m. HK/SIN, with stocks in the utilities and services sectors leading broad-based gains on the index before the market close.
MSCI's broad index of shares in Asia Pacific excluding Japan firmed through the day, last trading higher by 0.5 percent in afternoon trade.
That came after stocks stateside closed lower in the last session, with trade tensions between Washington and Beijing continuing to weigh on investor sentiment. The Dow Jones industrial average lost 0.8 percent, or 196.10 points, to close at 24,461.70 and mark the index's eighth straight day of losses.
U.S. President Donald Trump on Monday requested $200 billion in Chinese products be identified and potentially subject to an additional 10 percent tariff. China said it would retaliate with countermeasures if the U.S. went ahead with its threats.
For the week, markets in Asia remained under pressure after taking a hit earlier this week on trade-related fears. Even with Friday's gains, China's benchmark Shanghai composite finished the week down more than 4 percent after plunging on Tuesday. The Shenzhen composite was down more than 6 percent for the week.
Apart from trade, the backdrop of a deterioration in forward-looking indicators of global growth and a stronger dollar has resulted in a more cautious outlook for equity markets in the region.
Morgan Stanley, for one, has downgraded its targets for a number of Asian stock indexes. Jonathan Garner, chief Asia and emerging market equity strategist at Morgan Stanley, told CNBC's "Squawk Box" that Hong Kong was the market he was most concerned about in terms of near-term price direction.
Garner said he had a 12-month target of 27,200 for the Hang Seng from a previous target of 30,350.
Ahead, all eyes will be on OPEC and its allies as they meet in Vienna later on Friday. Markets are expecting the oil producers to ease production cuts that have been in place since 2017, with Reuters reporting early on Friday that Saudi Arabia's energy minister said the consensus was for output to be increased by one million barrels per day.
Still, other exporters, such as Iran, are understood to be against the slashing of output curbs.
"Saudi Arabia has pretty much laid down the gauntlet: An output increase is needed for the benefit of the consumers ... But likely these key players are staking out their positions as they go into a meeting and my bet is there will be a compromise scenario of raising output by probably in the range between 500,000 and 700,000 per day," Victor Shum, vice president for energy at IHS Markit, told CNBC's "Street Signs."
Before the highly watched meeting, Brent crude futures rose 1.27 percent to trade at $73.98 per barrel and U.S. West Texas Intermediate crude futures gained 1.19 percent to trade at $66.32.
Also of note, the Bank of England on Thursday held rates steady, but the central bank was seen as a touch more hawkish after one more committee member, BOE Chief Economist Andy Haldane, voted for a rate hike.
The British pound on Friday extended its overnight gains, last trading at $1.3284 at 2:56 p.m. HK/SIN after touching a recent seven-month low.
The dollar index, which tracks the greenback against a basket of currencies, lost some steam to trade at 94.669. Against the yen, the dollar was steady at at 109.87.
In corporate news, Samsung Securities fell 2.94 percent after South Korea's financial regulator proposed late on Thursday that some of company's operations be suspended for six months following a "fat finger" error that took place earlier this year.

                                                                   EUROPE 
cnbc.com

Europe ends sharply higher after OPEC secures deal on oil production; autos slip

Sam Meredith, David Reid, Alexandra Gibbs

European stocks finished Friday on a high note, as investors cheered on news coming out of an OPEC meeting in Austria.
The pan-European STOXX 600 finished the session up 1.09 percent provisionally, with all but two of the sectors closing in the black.



 


FTSE FTSE 7682.27
125.83 1.67% 738425891
DAX DAX 12579.72
67.81 0.54% 86314998
CAC CAC 5387.38
71.37 1.34% 76335478
IBEX 35 --- --- --- --- --- ---
Looking to Europe's bourses, the FTSE 100 jumped 1.67 percent, the French CAC 40 popped 1.34 percent, while the German DAX closed up just 0.54 percent, as pressure from German automakers weighed.
Sentiment over international trade disputes has shown signs of improvement compared to earlier on this week, allowing investors to edge back into riskier assets. In spite of today's positive session, on the weekly measurement, the STOXX 600 finished down 1.06 percent.

OPEC meeting

OPEC ministers in Vienna have agreed on oil production levels for their countries and crude-producing nations cooperating with the cartel.
After a tense few days, producers jointly decided to start pumping more, so that nations would no longer overshoot the target that was set in November 2016. The group agreed to keep 1.2 million barrels per day (bpd) off the market, but on Friday, OPEC stated that they would be cutting output well beyond that mark.
Earlier, Iran's oil minister, Bijan Zanganeh, told CNBC that more work is needed on a compromise deal, but OPEC was not meeting in order to receive instruction from President Donald Trump.
Oil prices have risen sharply during the course of the session, posting gains of more than 2 percent in afternoon trade. At Europe's market close, Brent crude stood around $74.57 per barrel, while U.S. crude shot up, trading around $68 per barrel.

Autos lose speed

Looking at Europe's sectors, stocks classified into Oil and Gas and Basic Resources were the strongest performers following that latest news from the OPEC meeting. Oil and Gas closed up 3.1 percent, with most energy stocks finishing in the black.
Europe's banking index also performed well Friday, finishing up 1.34 percent amid a rebound in Italian lenders. A top lawmaker in Italy's far-right Lega (League) party reportedly said Friday that the government would not look to exit from the single currency. That news partly prompted shares of BPER Banca, UBI Banca and Banco BPM to rise firmly.
Autos stocks however were the worst performers, struggling for gains amid heightened global trade tensions. Stocks in the sector came under severe pressure Friday after President Donald Trump issued a tweet about tariffs, specifically designated to the European Union.
In afternoon trade, the U.S. incumbent threatened a 20 percent tariff on all car imports from the euro zone, if the region didn't remove duties on U.S. cars. Consequently, European automakers fell deep into the red, with Fiat Chrysler, Ferrari and BMW all closing 1 percent down or more.
Looking at individual stocks, Airbus issued its strongest warning yet over the impact of Brexit, saying that the U.K.'s withdrawal from the EU without a deal would force it to consider it's long-term position in Britain. Shares however finished trade up over 2 percent.
Meantime, Inmarsat was the biggest gainer on the STOXX 600, jumping 10.6 percent, after U.S. group EchoStar disclosed stakes in the London-listed firm's debt and equity.
Meantime in the States, stocks were showed a mixed to positive picture on Friday,with the Dow up in the triple digits as it tried to avoid its longest losing streak in four decades.
Back in Europe, the euro area Composite Flash Purchasing Managers' Index (PMI) for June suggested that business growth in Europe remains on a recovery path.

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Dow jumps more than 100 points, snaps 8-day losing streak

 

Fred Imbert, Alexandra Gibbs


Stocks closed higher on Friday as investors tried to shake off jitters concerning trade tensions between the U.S. and China, with energy shares rising.
The Dow Jones Industrial Average rose 119.19 points to 24,580.89, with Chevron and Exxon Mobil among the best-performing stocks in the index. Friday's close marked the first gain for the 30-stock index in nine sessions, snapping its longest losing streak since March 2017.
The S&P 500 gained 0.2 percent to close at 2,754.88, with energy, materials and telecommunications outperforming. The Nasdaq composite, meanwhile, closed 0.3 percent lower at 7,692.82 as tech shares fell.
Markets around the globe had been on a roller-coaster ride this week as tensions surrounding a tit-for-tat trade dispute between the U.S. and China continued to escalate. The major indexes closed lower for the week, along with European stocks and Asian equity markets.
"As bad as it may seem to some people, this is more of a re-allocation of resources," said JJ Kinahan, chief market strategist at TD Ameritrade. "The Russell 2000 and Nasdaq both hit all-time highs this week."
"I think investors are wise to be cautious and re-evaluate these stocks and how they would be affected if these tariffs go through. ... That being said, market conditions are still pretty good," said Kinahan.
Dow Jones Industrials' Massive One Day Drop Of 4.6 Percent Rattles Markets Overseas Spencer Platt | Getty Images News | Getty Images
Dow Jones Industrials' Massive One Day Drop Of 4.6 Percent Rattles Markets Overseas
On Monday, President Donald Trump requested the United States Trade Representative identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. Those tariffs followed levies announced by both nations last week. Consequently, Beijing stated that it would deliver its own set of counter measures, if required.
But Bloomberg News reported, citing people familiar with the matter, that some White House officials are trying to restart talks with China in order to avoid a full-blown trade war.
Tom Essaye, founder of The Sevens Report, said in a note the report is bullish, but was "light on specifics." Essaye added: "This pullback/consolidation probably isn't over yet—although medium term, fundamentals for the markets remain supportive."
Trump later threatened on Friday to slap a 20 percent tariff on European cars, saying in a tweet: "Based on the Tariffs and Trade Barriers long placed on the U.S. and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!"

Shares of General Motors, Caterpillar and Boeing — all companies that do a lot of business outside of the U.S. — rose by at least 0.3 percent.
"A lot of the stuff that's being talked about on tariffs and trade has already been priced in," said Alex Chalekian, CEO of Lake Avenue Financial. But "depending on what the outcome of that is, it may not be good for the economy as a whole."
U.S. crude posted its best daily gain since November 2016 after OPEC members agreed to only a moderate supply increase. The cartel also declined to say exactly how much more its members would pump. Analysts said the deal will likely add between 600,000 and 800,000 barrels per day, which the market can easily absorb.
Energy stocks Chevron and Exxon Mobil both rose more than 2 percent, while the Energy Select Sector SPDR Fund (XLE) gained 2 percent.
—CNBC's Tom DiChristopher contributed to this report.