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Nov 23, 2018

Gerald Celente Video - As Warned. Crypto's Crashing. How Far, How Deep?

EU FX I Currencies: Euro set for biggest weekly drop in a month on PMI data, oil fall

Dan Kitwood | Getty Images
The euro slumped half a percent on Friday on signs that economic growth could be slowing across the euro zone with worries about Brexit and Italy's budget negotiations also weighing on the single currency.
A steep drop in oil prices on Friday fueled a risk-off wave across the board, setting the dollar on track for its biggest weekly rise in a month.
Business growth in the euro zone slowed much faster than expected this month, a Purchasing Managers Index survey showed.
The disappointing readings, hastened by a U.S.-led trade war, will be of concern to the European Central Bank which is expected to end its 2.6 billion euro asset purchase programme next month before raising interest rates next year.
After German private-sector growth slowed to its lowest level in nearly four years, the euro dropped into negative territory, hitting a five-day low of $1.3430. The euro also dropped 0.34 percent against the Swiss franc to 1.1303 francs.
"Doubts are creeping in about the euro zone economy. If the data doesn't pick up early next year this could turn into a long-term pattern 1/8for the euro 3/8," said Thu Lan Nguyen, a Frankfurt-based strategist at Commerzbank, also pointing to a dispute over Italys spending plans.
"If the 1/8euro zone 3/8 economy cools significantly... the European Central Bank might be forced to stick to an expansionary monetary policy," she said.
Weakness in the euro supported the dollar, which rose 0.24 percent against a basket of currencies to trade at 96.95.
The dollar has lost ground for two consecutive trading sessions and is drifting lower from a 16-month high of 97.69 hit earlier this month.
Dollar sceptics are concerned about the pace of future interest rate increases by the U.S. Federal Reserve.
Both the euro and sterling rose on Thursday after Britain and the European Commission agreed on a draft text outlining how their trading relationship will work once Britain has left the European Union.
But EU leaders still have to ratify the agreement at a summit on Sunday and Prime Minister Theresa May would then have to get a Brexit deal through a deeply divided British parliament.
At 11:43 a.m. EST the pound traded down 0.57 percent at $1.28, after gaining 0.8 percent on Thursday.
The Norwegian crown weakened 0.74 percent against the dollar as an overnight drop in oil prices weighed.
The yen was at 112.84 per dollar. The Japanese currency has traded in an extremely narrow range with a soft bias in recent trading sessions.
The Australian dollar, often considered a gauge for global risk appetite, weakened 0.39 percent to trade at $0.7226.
Analysts expect the Aussie to remain subdued ahead of a meeting between U.S. and Chinese leaders at a G20 meeting in Argentina at the end of the month, with markets watching for any sign of whether they may agree to de-escalate their trade war.

Source: CNBC

Bond Yields at Close Report: Treasurys rise as Wall Street seeks safety from decline in stocks and oil

Fred Imbert, Sam Meredith

U.S. government debt prices rose on Friday as investors looked for safety as equities and oil fell under pressure once again.
The benchmark 10-year note yield fell to 3.05 percent while the 30-year yield slipped to 3.306 percent. Bond prices move inversely to yields.
The Dow Jones Industrial Average and S&P 500 fell on Friday, adding to their steep losses for the week. Both stock indexes were down 4.3 percent and 3.7 percent, respectively.
U.S. bond markets resume trading after market participants observed the Thanksgiving holiday on Thursday. However, Friday's session will be abbreviated with fixed-income trading set to end at 2 p.m. ET.
Investors also bid up traditional safe havens as oil prices plunged. U.S. crude fell more than 6.5 percent to $50.91 per barrel, reaching its lowest level of 2018. Declining crude prices can signal the global economy is slowing, which would lead investors to cut positions in riskier assets in favor of safer ones.
Crude's decline comes at a time when U.S.-China trade tensions have raised concern of a possible economic slowdown. The two countries have imposed tariffs on billions of dollars worth of each other's goods as the Trump administration takes on a protectionist stance on trade.
U.S. and Chinese leaders are expected to meet at a G-20 meeting in Argentina at the end of the month, though few economists expect the scheduled talks to resolve the trade dispute.

Source: CNBC

Oil Price at Close Report I Oil tumbles more than 7% to $50.42, now down more than 30% in 7 weeks

Sam Meredith, Tom DiChristopher

Oil prices fell on Friday to their lowest levels in more than a year, deepening a rapid seven-week sell-off that has plunged crude futures deep into a bear market.
Friday's declines further ramp up the pressure on OPEC ahead of a much-anticipated meeting between the influential oil cartel and its allies in Vienna on Dec. 6, when they are expected to announce that output will be curtailed.
So far, the prospect of the Middle East-dominated group orchestrating a fresh round of supply cuts has done little to prop up crude futures.
U.S. benchmark West Texas Intermediate crude ended Friday's session down $4.21, or 7.7 percent, at $50.42. WTI hit its weakest price since mid-October 2017 on Friday.
International benchmark Brent crude dropped $3.66, or 5.9 percent, to $58.94 by 1:34 p.m. ET. The contract hit its lowest level since late October 2017.

WTI has now lost 34 percent of its value from its peak on Oct. 3 to the trough on Friday. Brent has fallen as much as 32 percent.
"I have to say that the speed in which the oil market has declined has surprised me even as OPEC and non-OPEC members discuss a production cut," said Andrew Lipow, president of Lipow Oil Associates. "The market does not think it will be enough."
The latest wave of energy market selling comes amid escalating concerns about an increase in global supply and a slowdown in economic growth.
Saudi Energy Minister Khalid al Falih on Thursday said the kingdom's output this month would surpass October's production of 10.6 million barrels per day.
That is near an all-time high but below the 10.7 million bpd guidance for October that Falih announced last month. Falih also said in October that November output would hit 11 million bpd. Sources told Bloomberg News this week the Saudis are currently pumping a record 10.8 million to 10.9 million bpd.
Falih on Thursday said demand will be lower in January and the kingdom will respond to weaker consumption. The minister has already warned Saudi oil shipments will fall by 500,000 bpd in December.
Falih pinned the anticipated drop in demand on the Trump administration allowing some of Iran's biggest customers to continue buying that nation's crude despite U.S. sanctions on the Islamic Republic.
Saudi Arabia and other producers increased output earlier this year in anticipation of the sanctions renewal, but the waivers mean fewer Iranian barrels came off the market than expected.
Meanwhile, U.S. crude production has reached 11.7 million bpd, according to preliminary weekly figures. Russia has also been producing at post-Soviet-era highs above 11 million bpd in recent months.
The downtrend in oil prices has most definitely taken "some by surprise," Tamas Varga, senior analyst at PVM Oil Associates, said in a research note published Friday.
"The question is … How much longer (are) bears are able to keep firing?" Varga wrote.
Global oil supply has surged in 2018, with the International Energy Agency recently predicting non-OPEC output alone would climb by 2.3 million bpd this year. That is an increase of half a million bpd from the group's forecast six months ago.
Meanwhile, the IEA expects demand in 2019 to grow at a rate of 1.3 million bpd, down slightly from a forecast of 1.5 million bpd six months ago.
Analysts at Morgan Stanley believe there are "compelling arguments" on either side when it comes to the OPEC alliance considering whether to implement production cuts from Dec. 6.
However, on balance, analysts at the firm said in a research note published Friday that the chance of supply cuts were around "2-in-3."
"In that scenario, Brent prices likely recover back into the $70s … On the other hand, in the 1-in-3 probability that OPEC does not come to an agreement, there is still downside to Brent prices, although probably not much below the high-$50s in the next few months."
Supply cuts also put the OPEC and non-OPEC alliance on a potential collision course with the United States.
President Donald Trump is publicly in favor of low fuel prices and has urged the group not to reduce crude production next month.
A day after standing by Crown Prince Mohammed bin Salman in the face of allegations that he had ordered the killing of dissident journalist Jamal Khashoggi, Trump on Wednesday publicly thanked Riyadh for helping to keep a lid on oil prices. But Trump also called on the de facto leader of OPEC to push prices even lower over the coming months.
About two dozen exporting nations began capping their output in 2017 in a bid to drain a global crude glut.
The group relaxed this strategy in June, but in September, some of the world's leading oil producers were talking about pumping extra oil onto the market in order to help soothe intensifying supply shock fears.

Source: CNBC

Gold Price at Close Report I Gold slips as dollar gains

Gold bullion bars and coins.
Getty Images
Gold bullion bars and coins.
Gold fell on Friday as the dollar regained momentum and an improvement in risk sentiment lifted stock markets in Europe, denting bullion's appeal.
Spot gold was 0.3 percent lower at $1,222.54 per ounce. U.S. gold futures for December delivery fell 0.4 percent to $1,223 per ounce.
"It's really the dollar's move... If gold breaks below $1,220, prices can quickly go to $1,200," said Dawei Hou, precious metals trader at MKS SA.
Still, the gold market continued to be relatively quiet as investors waited for a clear catalyst to break it out of a recent tight range.
Gold has traded in a range of about $13 for the week thus far, partly due to the U.S. Thanksgiving holiday.
A weaker euro, on signs that economic growth across the euro zone could be slowing, helped the dollar, but European stocks opened higher following a volatile week.
Euro zone business growth was much weaker than expected this month as exports fell sharply, hurt by a slowing global economy and a trade war led by the United States.
Market watchers are now looking ahead to the G-20 summit in Argentina at the end of the month, where leaders from the United States and China are expected to hold talks against a backdrop of ongoing trade tensions.
"If there is nothing in terms of an agreement at the summit, there will be pressure on stocks. If there is an improvement, gold will go lower as people come back to stocks. People are now looking at the dollar as a safe haven," Hou said.
On the technical front, however, gold has been trading above its 50-day and 100-day moving averages and that is keeping it supported for the moment a the lower end, a Hong Kong-based trader said.
Among other precious metals, spot silver fell 1.3 percent to $14.27 per ounce and platinum slipped 0.2 percent, to $842 per ounce.
Silver has mostly been following gold but its moves tend to be more pronounced, said ABN AMRO analyst Georgette Boele.
"Investors have been disappointed with silver, so they try to see if it breaks in the upside and every time it doesn't they quickly sell it again."
Palladium fell 2 percent to $1,130 per ounce. The metal was headed for its biggest weekly percentage decline since the week of July 20, down about 3 percent so far and drifting further away from a record high of $1,185.40 hit on Nov. 16.

Source: CNBC

Europe, and US Stocks Markets at Close Report

European markets fight back to close higher; oil in focus

David Reid, Sam Meredith

European stocks gyrated on Friday , partially affected by a steep dip in oil prices.
The pan-European Stoxx 600 moved lower in the early afternoon but recovered ground to close Friday's session provisionally 0.42 percent higher by the closing bell.
FTSE FTSE 100 6952.86 -7.46 -0.11% 708064900
DAX DAX 11192.69 54.20 0.49% 64960679
CAC CAC 4946.95 8.81 0.18% 63890373
Oil prices slumped to their lowest levels in more than a year on Friday, deepening a rapid seven-week sell-off that has plunged crude futures deep into a bear market.
Friday's declines further ramp up the pressure on OPEC ahead of a much-anticipated meeting between the influential oil cartel and its allied partners. OPEC and non-OPEC members are expected to start curtailing output at a meeting in Vienna on December 6.
By the close of trade WTI sat at around $51.13 per barrel and Brent Crude was at $58.83. The Stoxx Euro Oil and Gas sector shed 2.9 percent
Europe's banking index moved into positive territory on Friday, up around 0.5 percent amid support from Italy's notoriously fragile lenders. Banco BPM, Unicredit and Ubi Banca were all trading more than 2 percent higher after the country's deputy prime minister, Luigi Di Maio, reportedly said Rome would show the highest willingness to work with European institutions in order to resolve a budget stand-off.
However, Di Maio also told La Repubblica Friday that Italy would not be prepared to amend the main pillars of its expansionary 2019 budget. The European Commission has already rejected the country's big spending plans, saying it fails to bring down the deficit as required by EU regulations.
Looking at other individual stocks, Britain's Flybe surged towards the top of the London Stock Exchange on Friday. It comes after the regional airline confirmed Virgin Atlantic was one of the parties it was in talks with as part of a formal sales process. Rival airlines including Ryanair and Easyjet had previously ruled themselves out of bidding for Flybe. Shares of the stock rose more than 70 percent on the news, albeit from a low base..

Euro zone PMI

Weak data for the euro zone affected markets on Friday. IHS Markit's Flash Composite PMI (Purchasing Managers Index) for November came in at 52.4. That still represents expansion but is the weakest number since late 2014.
Bond yields fell as investors increased bets that weak growth across the euro zone (19 of the 28 European Union members) would slow the ECB's plan to withdraw stimulus.


Market focus is largely attuned to Brexit developments, after a draft deal was reached between the U.K. and the European Union late Thursday.
The agreement follows a treaty last week that set the terms for Britain's withdrawal from the bloc in March 2019.
The British government still faces a daunting task in getting the deal through Parliament, with lawmakers deeply divided over the proposal in its current form.


Dow falls more than 150 points, posts worst Thanksgiving week decline since 2011

Fred Imbert

Stocks fell on Friday as some of the most popular technology shares were under pressure once again, while a steep drop in oil prices also weighed on equities.
The Dow Jones Industrial Average dropped 178.74 points to 24,285.95 while the S&P 500 pulled back 0.65 percent to 2,632.56. The Nasdaq Composite dipped 0.5 percent to close at 6,938.98. The Dow and S&P 500 posted their worst Black Friday performance since 2010. The Nasdaq had its worst Black Friday since 2011.
For the week, the major indexes all dropped more than 3 percent. They also had their biggest loss for a Thanksgiving week since 2011.

"I don't think the bull run is over but I think we're close to the end of the cycle," said Mark Esposito, CEO of Esposito Securities. "It feels a bit unsafe." Esposito cited slowing earnings growth, higher market volatility and slowing economic growth as signs the currency cycle may be ending.
Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all fell on Friday. These stocks, which make up the popular "FAANG" trade, all fell at least 5.7 percent through Wednesday's close.
Apple, which has fallen more than 25 percent since hitting an all-time high earlier this year, dropped 2.5 percent after The Wall Street Journal reported the company plans to cut prices for the iPhone XR in Japan because it's not selling well.
Friday's session ended early after the Thanksgiving holiday on Thursday, when U.S. markets were closed.
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Nov. 2, 2018. 
Michael Nagle | Bloomberg | Getty Images
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Nov. 2, 2018.
Stocks were also under pressure on Friday as crude oil prices plunged. West Texas Intermediate futures fell more than 6 percent to $51.03 per barrel, reaching their lowest level of the year.
"Tech stocks are under pressure once again but more troubling is that oil prices are collapsing," said Peter Cardillo, chief market economist at Spartan Capital Securities. "Lower oil prices are not a good sight for the economy."
"OPEC has indicated they're going to cut [production], but that's not helping. That's a bad sign," said Cardillo.
The drop sent the Energy Select Sector SPDR Fund (XLE) — which tracks the S&P 500 energy sector — down more than 3.1 percent. Shares of Concho Resources, EOG Resources and Devon Energy were among the biggest decliners in the XLE.
Crude's decline comes at a time when U.S.-China trade tensions have raised concern of a possible economic slowdown. The two countries have imposed tariffs on billions of dollars worth of each other's goods as the Trump administration takes on a protectionist stance on trade.
U.S. and Chinese leaders are expected to meet at a G-20 meeting in Argentina at the end of the month, though few economists expect the scheduled talks to resolve the trade dispute.
"A lot of the move have to do with tariffs and moves by the Fed," said Greg Powell, CEO of Fi-Plan Partners. "Depending on what happens in those talks, that could change the whole dynamic in the market from a sentiment standpoint."
China stocks fell on Friday in anticipation of the U.S.-China trade talks. The Shanghai Composite dropped 2.5 percent while the Shenzhen A Share index pulled back 3.7 percent.
Retailers bucked the negative trend, as the SPDR S&P Retail exchange-traded fund (XRT) rose 0.3 percent on Black Friday, one of the busiest shopping days of the year. Shares of Lands' End and Etsy rose 5 percent and 2.8 percent, respectively, while L Brands gained 2 percent. Overstock, which is also in the XRT, surged more than 23 percent after its CEO said the company would sell its retail business to focus on crypto.
—CNBC's Sam Meredith contributed to this report.

Source: CNBC

Online surge, lines mark start of Black Friday sales: Business News I Reuters

Nandita Bose

NEW YORK (Reuters) - U.S. shoppers desperate for deals banged on doors and formed long queues at checkout counters on Black Friday, as a strong economy and rising wages drove a solid start to the holiday shopping season.

People shop during the Black Friday sales shopping event at Roosevelt Field Mall in Garden City, New York, U.S., November 23, 2018. REUTERS/Shannon Stapleton
Shoppers picked up big ticket items such as TVs, Apple iPads and Watches in-store and online at Target Corp (TGT.N), while phones, toys, gaming consoles and cookware were top sellers at Walmart Inc (WMT.N).
Shortly before 6 a.m. ET on Friday, shoppers were seen banging on the door at a Bath & Body Works in the Waterfront Mall in Pittsburgh, lining up for discounted candles, soaps and lotion, while long lines formed at checkout counters in a Dick’s Sporting Goods store in the mall.
But there was little evidence of the delirious shopper frenzy customary of Black Fridays from past years, in other parts of the country, especially the North East, where crowds were thin due to record-cold weather.
Twenty one-year old Columbia computer science graduates Bhavaya Shahi and Ketakee Nimavat pulled an all-nighter outside Macy’s Herald Square store in New York hoping to beat long snaking lines that usually forms in front of popular store.
“We heard there were going to be long lines,” Shahi said, with bags in her hands and bags hanging on her forearm.
“It’s emptier than we thought.”
Stores, such as the Macy’s in Herald Square, opened doors as early as 5 p.m. on Thanksgiving, but a large chunk of retailers are scheduled to open at 7 a.m on Friday.
Moody’s analyst Charlie O’Shea, who was visiting stores in Bucks County, Pennsylvania on Thursday said a slower start at stores on Thanksgiving and Black Friday was increasingly not indicative of shopper appetite during the season.
“The season is expected to be strong and all signs when it comes to consumer sentiment point to that,” he said.
Large crowds were absent in many locations on Thursday, but it was not as bad as 2015 and 2016 when shoppers largely stayed away from stores on Thanksgiving and Black Friday, according to retail analysts and consultants.
“Traffic is building up and in many places is on par with last year,” said Craig Johnson, president of retail consultancy Customer Growth Partners, who was visiting stores in Connecticut on Thanksgiving.
Sarah Perez, a 26-year-old visiting New York City from upstate New York with her husband, did not enjoy the shopping experience at J.C. Penney because of a very long line at the checkout.

Slideshow (7 Images)
“We’re never doing it again,” Perez said adding she had already done some of her shopping on Amazon before coming out.


Shoppers spent $1.75 billion online by 5 p.m. ET on Thanksgiving, with smartphone sales lifting overall online spending by 28.6 percent from a year ago, according to Adobe Analytics, which tracks transactions from 80 of the top 100 U.S. online retailers.
Consumers in San Francisco led the rest of the country with over 2.3 million online transactions, followed by over 954,000 in New York City, more than 415,000 in Dallas and 389,000 in Houston by 10.30 pm ET, according to payments processor First Data Corp (FDC.N), which collects data from about 1 million U.S. merchants.
Electronics retailers such as Best Buy Co Inc (BBY.N) saw the most number of transactions followed by department stores such as Macy’s Inc (M.N), according to Adobe’s data.
Crops rot in U.S.-China trade war
Traditionally, the day after Thanksgiving, or Black Friday, kicks off the holiday shopping season in the United States. But with U.S. stores now opening on Thanksgiving evening, the typical rush seen on the morning of Black Friday has split up.
The National Retail Federation forecast U.S. holiday retail sales in November and December will increase between 4.3 and 4.8 percent over 2017 for a total of $717.45 billion to $720.89 billion. That compares with an average annual increase of 3.9 percent over the past five years.
About 38 percent of American consumers plan to shop on Black Friday this year, and six in 10 of those shoppers anticipate making at least half of their holiday purchases on that day, a Reuters/Ipsos poll showed last week.
Additional reporting by Melissa Fares, Shannon Stapleton in Long Island and Chriss Swaney in Pittsburgh; Siddharth Cavale in Bangalore; editing by Patrick Graham and Saumyadeb Chakrabarty

Source: Reuters

Markets I WSJ: Institutional Investors Avoid Tobacco, Weapons Securities.

The Wall Street Journal.
Markets Bear logo.
Good morning. I'm Gunjan Banerji, your guide to the markets this morning. 
U.S. stock markets will close at 1 p.m. today, so enjoy the shortened day. 
The S&P 500 notched gains on Wednesday but is still on track for weekly losses, the first during a Thanksgiving week since 2011. This morning, oil prices and equity futures are down. 
Plus, our Matt Wirz will dive into how some big investors are shunning investments tied to tobacco and weapons. 

Markets in a Minute

Markets Data

Overnight Developments


No Smoking? ESG Investors Boosting Screens for Tobacco, Weapons

By Matt Wirz, credit markets reporter
U.S. institutional investors are increasingly screening out securities tied to tobacco and weapons production, cordoning off $4 trillion of investment assets from the two industries, according to a new study.
The institutions, primarily pension funds and insurers, placed so-called ESG screens against $2.56 trillion of tobacco-related securities, more than doubling the $1.16 trillion that was similarly restricted in 2016, according to findings by US SIF, an organization that promotes sustainable and responsible investing. ESG stands for environmental, social and governance practices.
Disclosed restrictions on arms-related investments climbed 78% to $1.45 trillion of investable assets from $845 billion over the same time period. The increases in blocks against investing in tobacco and weapons-related securities helped make product-specific restrictions the fastest-growing type of ESG investments.
ESG principles have become a hot topic in investment circles, with some portfolio managers touting them as a way to reduce risk without sacrificing returns by betting on companies and governments that employ sustainable and ethical policies. But ESG investing also has a history of employing a more aggressive tactic: Investment bans—often called negative filters—like the anti-apartheid divestiture campaign of the 1980s.
Total assets invested using ESG principles, often overlapping in the same portfolio, grew 38% to $12 trillion in January of this year from $8.7 trillion in 2016, according to the US SIF study. The figure, which includes money managers as well as institutional investors, represents about one quarter of all professionally managed assets in the U.S.
Institutional investors included in the study also placed restrictions on assets worth $1.65 trillion, prohibiting their investment in companies engaged in political campaign spending and lobbying. That figure was up by 65% from 2016.
It is hard to tell whether insurers and pensions are applying more bans on tobacco and weapons investing, or are increasingly reporting previously undisclosed restrictions, says Meg Voorhees, director of research at US SIF. What is clear is that institutions are increasingly communicating their commitment to ESG principles to address concerns of their investors and stakeholders, she said.
After mass shootings in Las Vegas and Parkland, Fla. prompted national outcry, “a number of public funds and other institutional investors reviewed their investment portfolios’ weapons holdings and established policies to divest from gun manufacturers,” the study found.
Institutions now divesting from arms makers include some of the largest in the nation, such as California’s public employees’ and teachers’ pension funds, Chicago teachers’ pension funds and New York City’s employee pension funds.
Do you think investors will continue to screen for tobacco and weapons securities? Let the author know your thoughts at Emailed comments may be edited before publication in future newsletters, and please make sure to include your name and location.

Key Events

The Composite Purchasing Managers' Index is released at 9:45 a.m. ET, providing an early estimate of private sector output. 
U.S. stock exchanges close at 1:00 p.m. 
The Fed's balance sheet is released at 4:30 p.m. 

Must Reads

The market for General Electric debt has softened considerably. Here, a man takes a picture of a General Electric engine during an expo in Shanghai, China, Nov. 6. PHOTO: ALY SONG/REUTERS
The global selloff is testing a changed credit market. Corporate bonds have taken a beating in November, adding to an already difficult year for a market that thrived in an era of ultra-easy money.
A retreat of smaller lenders is adding pressure to housing. Small and midsize U.S. mortgage firms are trimming staff, putting themselves up for sale and closing up shop at a clip not seen in years, a sign of the pressure on the housing market as interest rates rise.
Trouble is brewing for Louis Dreyfus’s coffee trading. Intercontinental Exchange has suspended three Louis Dreyfus-owned coffee warehouses in Europe for violating unspecified “grading” procedures.
Goldman Sachs is being sued over its “central role” in the 1MDB scandal. An Abu Dhabi sovereign-wealth fund accused Goldman of enabling bribes to former top executives at the fund.
The U.S. is urging its allies to shun Huawei. The U.S. government has launched an outreach campaign to foreign allies to persuade wireless and internet providers to shun telecom equipment from China’s Huawei, people familiar with the situation say.

What We've Heard on the Street

“Retailers will have a good Christmas in 2018. That may not matter.”
—Heard on the Street columnist Elizabeth Winkler

Stocks to Watch

Freeport-McMoRan Inc.: The mining company's shares rose 5% on Wednesday as copper prices edged higher. Copper prices have risen in six of the past seven sessions.
Deere & Co.: The manufacturer's stock jumped 2% on Wednesday after it revealed that revenues grew in the fourth quarter, lifted by farm machinery and construction-equipment sales. 
Facebook Inc.: Mark Zuckerberg recently responded to the controversies circling the social media giant in a television interview. The chief executive said that he doesn't plan to step down as chairman in the near term.

Stocks making the biggest move premarket: FB, COL, UTX, V, MA, OSTK & more.

Peter Schacknow

Check out the companies making headlines before the bell:

Facebook – The head of George Soros's philanthropic foundation called for oversight of Facebook by lawmakers, following revelations that it had hired an opposition research firm to scrutinize the billionaire investor. Patrick Gaspard made his feelings known in a tweet, in which he accused Facebook of targeting Soros because he criticized the company's business model.
Rockwell Collins – China regulators have given conditional approval for the buyout of the aviation systems company by United Technologies. United Technologies had announced the $30 billion cash-and-stock deal in September 2017, and the U.S. had given its approval last month
Nissan – The automaker's board of directors voted unanimously to remove Carlos Ghosn as chairman, as he faces allegations of financial misconduct.
Visa, Mastercard – Visa and Mastercard have offered to trim merchant fees in Europe for card payments by tourists, according to a Reuters report. The payment networks are said to be trying to avoid fines related to an antitrust probe.
Walmart, Macy's, Target, Best Buy – These and other retailers will be on watch as reports start to emerge on the pace of Black Friday shopping.
Sabre – The flight booking system company and Spanish rival Amadeus are the targets of a European Union probe, which is examining a possible breach of antitrust rules. – Overstock CEO Patrick Byrne told The Wall Street Journal that he expects to wrap up a sale of Overstock's retail business by February, although he did not name potential buyers. Overstock is planning to focus on tZero, a new blockchain trading system.
Nokia – Nokia head of mobile networks Marc Rouanne is leaving the Finnish company, to be replaced by Tommi Uitto, described by the company as a radio technologies expert. Rouanne is the second senior executive to leave Nokia within the past few weeks.
Tesla – The automaker is cutting the price of its Model X and Model S cars in China. The price cuts will range from 12 to 26 percent.
Apple – Apple is effectively cutting the price of its iPhone XR in Japan, according to the Wall Street Journal, by offering subsidies to mobile network operators in that country.
Novartis – Novartis received approval from European Union regulators for a new gene therapy treatment for patients with inherited retinal disease.
Comcast, Charter Communications, Altice, Dish Network – These and other cable and satellite operators will be in focus, as analysts wait to see how many subscribers are willing to pay $19.99 to watch today's winner-take-all golf match between Tiger Woods and Phil Mickelson.
(Disclosure: Comcast is parent of NBCUniversal and CNBC.)

Source: CNBC

WSJ 10- Point: A Guide to the 10 Top News

Wall Street Journal.

Today's guide to the WSJ
Good Morning. In today’s edition, retail disruption has a silver lining, Nissan takes the keys from Carlos Ghosn, Washington asks allies to drop Huawei, and more.
Millions of Americans are flocking to stores over the Thanksgiving weekend. The drumbeat of retail closings—actually quieter than last year’s, with 19% fewer store closures through Nov. 16—sends a more upbeat signal for the surviving chains: They are drawing their fallen rivals’ displaced shoppers.
  • Following the collapse of Toys “R” Us and store closings by Sears, retailers including Best Buy and Target pursued their business and picked up market share.
  • Macy’s said its Midwestern stores are getting a sales lift from the failure of regional chain Bon-Ton Stores. Even struggling J.C. Penney said it was picking up business from the demise of Toys “R” Us unit Babies “R” Us.
“We believe approximately one-third of our store base is being favorably affected by department-store-competitor store closings.”
— Bruce Besanko, finance chief of Kohl’s
Futures pointed to lower openings for the Dow industrials and S&P 500 on their return from the holiday, though European indexes were higher in midmorning trading after sliding Thursday on continuing oil-price volatility. Analysts are concerned that oil, which slipped further Friday, is signaling weaker global growth, as well as reflecting oversupply. Shares in China—a bellwether for those global growth fears—took a beating Friday, including a 2.5% drop in the Shanghai Composite.
Nissan ousted Carlos Ghosn as chairman
Allegations also emerged that Mr. Ghosn spent some $18 million in company money to buy and renovate personal homes and used a subsidiary to make multiple payments to his sister for phantom consulting work. Mr. Ghosn was arrested Monday in Japan on suspicion of conspiring to lower his reported compensation on Nissan’s securities filings by around $44 million over five years.
  • The sudden arrest is exposing rifts in the Nissan-Renault alliance he built and ruled for more than a decade. Renault’s directors were in shock over Nissan’s handling of the matter.
  • Greg Kelly, a Nissan board member and former senior executive also jailed, became well known inside the company as gatekeeper and confidant to Mr. Ghosn. Nissan alleged he was the financial misconduct’s “mastermind.”
  • Mr. Ghosn joins a queue of corporate chieftans accused of mismanaging expenses: Executives at companies including Mercedes-Benz, WPP and the former Hewlett-Packard have exited in recent years following questions about their use of company money.
Washington asks allies to drop Huawei Technologies. Citing cybersecurity risks, the U.S. government—in an extraordinary outreach campaign—is trying to persuade wireless and internet providers in friendly countries to avoid telecommunications equipment from the Chinese company, which dominates the global market.
  • American officials have talked to their counterparts and telecom executives in countries where Huawei equipment is already in wide use, including Germany, Italy and Japan.
  • One U.S. concern centers on countries that host American bases. The military has its own satellites and telecom network for sensitive communications, but most traffic at many installations travels through commercial networks.
From reporter Stu Woo:
The U.S. government is shifting from defense to offense: Whereas it previously focused on keeping Huawei telecom equipment out of America, Washington is now trying to persuade allied countries to restrict Chinese equipment on their own turf. U.S. officials have briefed government counterparts and foreign wireless carriers about the risks, and are considering giving more financial aid to countries to buy Western telecom equipment. They worry the Chinese government could compel Huawei to spy or disrupt communications.

Would you watch football without all the violence?
The NFL, facing a concussion crisis, is tinkering with rules to better protect players. Anxiety over head injuries has gotten to the point that people inside football wonder about the sport’s long-term future. Well, the Journal’s Jason Gay asks, what if the league went further than rule changes to make a kinder, gentler game?
Big experiment in tiny satellites
This NASA illustration shows the twin MarCO spacecraft flying over Mars with Earth and the sun in the distance. They are the first CubeSats—a kind of modular minisatellite—flown into deep space. NASA/ASSOCIATED PRESS
Inspired by the success of small satellites orbiting Earth, aerospace engineers are coming up with audacious ideas for inexpensive, high-risk deep space missions. A major test is nearing: The two smallest and cheapest spacecraft ever to cross between planets are about to reach Mars, cruising alongside NASA’s $828 million InSight robotic lander. While InSight descends to the surface Monday, the 30-pound briefcase-size satellites will hang back in orbit as communications relays.
Conference Call: Ask About the Best Tech Gifts
This Cyber Monday, Nov. 26, at 1 p.m. ET, join Personal Technology editor Wilson Rothman in conversation with columnists David Pierce and Joanna Stern for a rundown on the best tech gifts for you and your loved ones. Write in to, and we will answer live during the call. Register here.
What Were Following
Washington CallingPresident Trump mixed Thanksgiving cheer with politics in phone calls to members of the military, offering gratitude along with complaints about the judiciary and talk about border security.
Brexit Progress: Negotiators for the European Union and U.K. agreed on an outline of future ties, taking the country closer to an orderly departure—though domestic opposition remains.
Farewell Gesture: The outgoing Republican chairman of the House Judiciary Committee has subpoenaed former FBI Director James Comey and former Attorney General Loretta Lynch to testify.
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The president of George Soros’s philanthropy called for oversight of Facebook by U.S. lawmakers. (Read)
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What Else Were Reading
In an interview, Hillary Clinton said Europe should curb immigration to stop rightwing populists. (The Guardian)
Toy seller F.A.O. Schwarz has been reincarnated, but it isn’t the same. (New York Times)
Tariff measures imposed by G-20 countries now cover a record $481 billion in global trade, according to the World Trade Organization. (Bloomberg)
Today’s Question and Answer
In response to our question about President Trump pledging to remain a “steadfast partner” of Saudi Arabia:
Michele Cody of Michigan said: “It doesn’t surprise me that Trump would side with a dictator over freedom of the press. Trump’s repeated castigation of the press never ceases. GOP has become Greed Over People. This is just another Trumpian maneuver to erode both the judicial system and democracy.”
Sean Fitzpatrick of Virginia wrote: “Somewhere or somehow, our politicians and media pundits got the idea the U.S. should presume to rule over Saudi Arabia and the rest of the world. There is no American empire. The president is correct to choose the relationship over punishing Saudi Arabia.”
Alan Dechovitz of South Carolina shared: “If the United States chooses its allies based on each country’s conformance to what our public assumes are accepted norms of international behavior, then the United States will be alone in the world.”
Stephen Martin of Arizona wrote: “In this instance, President Trump is being a hard-nosed realist and is absolutely correct. As Lord Palmerston said, ‘Nations have no permanent friends or allies, they only have permanent interests.’ Saudi Arabia is an indispensable ally and hegemon to Iran. He should, however, thoroughly condemn and distance the United States from Mohammed bin Salman, a toxic leader who is the reverse of King Midas. Everything he touches turns to lead. He is the poster child for Lord Acton’s observation that power corrupts and absolute power corrupts absolutely.”
Question for the next 10-Point: Going back to our article above, what are your thoughts on violence in football? Email us your comments, which we may edit before publication, to, and make sure to include your name and location.