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Showing posts from October, 2019

EU - FX on October 31, 2019: Euro rises as dollar weakens on questions about more Fed rate cuts

3-4 minutos - Source: CNBC U.S. dollar bank notes are arranged for a photograph on September 7, 2017 in Hong Kong. studioEAST | Getty Images The euro gained on Thursday as the dollar weakened after the Federal Reserve on Wednesday cut interest rates for the third time this year and left open the question of whether it would cut them further. The dollar was falling against most currencies, particularly the Chinese offshore yuan, which rose to an 11-week high. The Fed lowered its benchmark rate by 25 basis points to a target range of 1.50% to 1.75%. But it dropped a reference in its policy statement that it would “act as appropriate” to sustain economic expansion — language considered a sign of future cuts. Still, lack of an explicit signal the Fed was done with easing for now was taken as less hawkish than expected, helping to drive the dollar down. “The new, slightly shorter, statement tries to keep their options

Bonds | Treasury Yields Report on October 31, 2019: Treasury yields drop amid doubts over long-term US-China trade deal

Fred Imbert, Silvia Amaro 2minutos - Source: CNBC Treasury yields declined on Thursday as investors loaded up on safer assets amid persisting worries around U.S.-China trade relations. The benchmark 10-year yield fell to around 11 basis points to 1.68%. The 2-year rate slid by 10 basis points to 1.519%. Yields move inversely to prices. At around 5 a.m. in New York, Bloomberg News reported Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The report, which cites unnamed sources, said Chinese officials are concerned about President Donald Trump’s “impulsive nature” and the risk of him backing out of any kind of deal. Trump later tweeted China and the U.S. were working on an alternative venue to sign phase one of a trade deal which, he said, is “60%” of the overall deal. Thursday’s moves came after the Federal Reserve on Wednesday cut rates for the third time in 2019. Nonethele

Energy | Oil | Oil Price Report on October 31, 2019: Oil falls 1.6% as inventory gain and weak Chinese data weigh

3-4 minutos - Source: CNBC A man working in a filling station of Sinopec, China Petroleum and Chemical Corporation, in Shanghai, China, on March 22, 2018. Johannes EIsele | AFP | Getty Images Oil prices came under pressure on Thursday from rising U.S. crude oil stocks and weak factory activity in China, with few bullish factors on the horizon. Brent crude futures fell 40 cents to settle at $60.21 a barrel, erasing earlier gains. They had dropped by 1.6% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures fell 88 cents, or 1.6%, to settle at $54.18 per barrel. On the month, however, they are set for a rise of about 0.9%, its biggest monthly gain since June. The front-month Brent contract for December delivery expires on Thursday. The one for January delivery was also down. Factory activity in China shrank for a sixth straight month in October while growth in the country’s service sector activity was its slowest since Februa

Commodities | Gold | Gold Price Report on October 31, 2019: Gold gains as dollar weakens after Fed's interest rate cut

3minutos - Source: CNBC Gold bars on display in Tokyo on September 27, 2010. Yoshikazu Tsuno | AFP | Getty Images Gold prices climbed on Thursday as the U.S. dollar weakened after the Federal Reserve cut interest rates for the third time this year, but signaled the monetary-easing cycle would be paused. Hopes that the United States and China will sign a preliminary agreement and call a truce to their 16-month trade war was also a factor behind the Fed’s decision to signal that further rate cuts are on hold. Spot gold was up 0.77% at $1,506.2 per ounce. Prices have risen nearly 2% this month.  U.S. gold futures rose 0.82% to $1,508.9 per ounce. “We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks,” Fed Chair Jerome Powell said. Powell ticked off an extensive list of reasons why he feels the economy is doing well, and likely to continue to do so unde

Exclusive: WHO, Congo eye tighter rules for Ebola care over immunity concerns

Alessandra Prentice 6-8 minutos - Source: Reuters DAKAR (Reuters) - The World Health Organization and Congolese authorities are proposing changes to how some Ebola patients are cared for, new guidelines show, after a patient’s death challenged the accepted medical theory that survivors are immune to reinfection. FILE PHOTO: A health worker wearing Ebola protection gear enters the Biosecure Emergency Care Unit (CUBE) at the ALIMA (The Alliance for International Medical Action) Ebola treatment centre in Beni, in the Democratic Republic of Congo, April 1, 2019. Picture taken April 1, 2019.REUTERS/Baz Ratner/ There are many unanswered questions surrounding the circumstances of the woman’s death in Democratic Republic of Congo, which has not previously been reported. But it has raised concerns because the woman, whose name has not been released for confidentiality reasons, was thought to have had immunity after surviving infection,

Analysis | The Finance 202: Fed's decision to cut rates is a sign Trump's tax cuts have fallen short

By Tory Newmyer 14-17 minutos - Source: CNBC THE TICKER Federal Reserve Chairman Jerome Powell. (AP Photo/Susan Walsh) Federal Reserve Chair Jerome Powell ignored a question about whether President Trump's tax cuts have succeeded.  But the central bank's decision to cut rates is a sign they haven't.  The Republican architects of Trump’s tax cut said a big boost in business investment would prove the effort succeeded. That bump in corporate spending has failed to materialize nearly two years after the cuts passed into law and a new government report found it dropped 3 percent last quarter. Here, via CNBC, is how that spending has looked over the last two years: Powell cited the drop as one of the factors that prompted the central bank to cut interest rates for the third time this year. The results render a harsh verdict on Trump's signature domestic achievement. “Compared to what was promised, I think the

Market Insider | Biggest Moves Premarket: Stocks making the biggest moves premarket: Altria, Bristol-Myers Squibb, Generac, Apple and more

Peter Schacknow 5-6 minutos - Source: CNBC Check out the companies making headlines before the bell: Altria (MO) – The tobacco producer beat estimates by 4 cents with adjusted quarterly profit of $1.19 per share, 4 cents above estimates, with revenue also beating forecasts. Altria also took a $4.5 billion writedown on its investment in e-cigarette maker Juul, on the possibility of further FDA actions as well as bans on e-cigarette products by various states and cities. Bristol-Myers Squibb (BMY) – The drugmaker came in 10 cents above estimates with adjusted quarterly earnings of $1.17 per share, with revenue above estimates as well. However, Bristol-Myers also cut its full-year guidance. Generac (GNRC) – The maker of home and commercial generators reported adjusted quarterly profit of $1.43 per share, 10 cents above estimates, with revenue also beating Wall Street forecasts. Generac said rolling power blackouts in California ar

US Market | Futures Indicator: US futures point to a higher open after Fed signals a pause in rate cuts

Elliot Smith 2minutos - Source: CNBC U.S. stock index futures were higher Thursday morning. At around 03:40 a.m. ET, Dow futures rose 21 points, indicating a positive open of more than 26 points. Futures on the S&P — which closed at an all-time high in the previous session — and Nasdaq were both seen slightly higher. The Federal Reserve cut interest rates by 25 basis points for the third time this year on Wednesday. Comments from Chairman Jerome Powell indicated that the central bank would be hitting pause on monetary policy easing for now, and there will be no hiking until inflation rises “significantly.” Earnings season remains high on the agenda for investors, after Apple on Wednesday forecast sales ahead of Wall Street expectations for the holiday season while Facebook reported its third straight climb in quarterly sales growth. Italian-American automaker Fiat Chrysler (FCA) is set to report earnings Thursday after announc

Bonds | Treasury Yields Report: Treasury yields fall after the Fed cuts rates for the third time in 2019

Thomas Franck 4-5 minutos - Source: CNBC U.S. government debt yields  slipped on Wednesday after Federal Reserve officials cut rates for a third time in 2019 and said they’d need to see a marked and persistent rise in inflation before hiking borrowing costs in the future. The yield on the benchmark 10-year Treasury note , which moves inversely to price, was lower at around 1.789%, while the yield on the 30-year Treasury bond was also lower at around 2.263%. The 2-year Treasury yield, more sensitive to changes in central bank policy, fell to 1.622% following the Fed decision. Though the Fed voted to cut its overnight lending rate by 25 basis points, yields rose slightly after officials suggested in a statement that its third rate cut for 2019 could be followed by a pause in policy adjustments. The Fed will now target the federal funds rate in a range between 1.5% and 1.75%. “The Committee will continue to monitor the implications

News | Federal Reserve: The Fed cuts interest rates, but indicates a pause is ahead

Jeff Cox 4-5 minutos - Source: CNBC The Federal Reserve approved an expected quarter-point interest rate cut Wednesday but indicated that the moves to ease policy could be nearing a pause. In a vote widely anticipated by financial markets, the central bank’s Federal Open Market Committee lowered its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%. The rate sets what banks charge each other for overnight lending but is also tied to most forms of revolving consumer debt. It was the third cut this year as part of what Fed Chairman Jerome Powell has characterized as a “midcycle adjustment” in a maturing economic expansion. Along with the decrease came language pointing to a higher bar for future easing. The FOMC removed a key clause that had appeared in post-meeting statements since June saying it was committed to “act as appropriate to sustain the expansion.” Powell had used the phase in early June to tee up the J

News | Auto Industry: Fiat Chrysler and Peugeot reportedly reach deal to merge

Michael Wayland 5-6 minutos - Source: CNBC Jens Schlueter | Getty Images DETROIT – From Daimler-Chrysler to Fiat Chrysler , the former American automaker Chrysler Corp. has gallivanted around the world to find partners to assist in its growth or help keep it afloat. It now has its sights set on Peugeot maker PSA Group . Both the French carmaker and Fiat Chrysler on Wednesday confirmed they are in talks that could to create the world’s fourth-largest automaker with a roughly $50 billion valuation. The PSA board approved the merger and the Fiat Chrysler board is set to meet Wednesday, sources told the Wall Street Journal. Reports of the talks, including a potential “all-share merger of equals,” as the Wall Street Journal first reported, sent shares of Fiat Chrysler surging as much as 8% on Tuesday . The stock is trading slightly higher Wednesday after opening at $14.34 a share. The confirmation of the talks comes about five mon

Energy | Oil | Oil Price Report: Oil falls more than 1% as US inventory rises, trade war weighs

3minutos - Source: CNBC Workers extracting oil from oil wells in the Permian Basin in Midland, Texas on May 1, 2018. Benjamin Lowy | Getty Images Oil prices fell on Wednesday as worries about a possible delay in resolving the U.S.-China trade war, which has hurt global oil demand, competed with a price-supporting drop in U.S. crude inventories. According to the US Energy Information Administration, US crude inventories increased by 5.7 million barrels from the previous week. US inventories are now at 438.9 million barrels, which is about 1% above the five year average for this time of year, the EIA said. Brent crude was down 70 cents, at $60.90 a barrel. U.S. West Texas Intermediate (WTI) crude was down 92 cents, or 1.7%, at $54.62 a barrel. The United States and China were continuing to work on an interim trade agreement, but it may not be completed in time for U.S. and Chinese leaders to sign it next month, a U.S. administration official said. “Se

Commodities | Gold | Gold Price Report:Gold prices fall after Fed cuts interest rates

3minutos - Source: CNBC Gold bars sit in a vault at the Perth Mint Refinery in Perth, Australia, on August 9, 2018. Carla Gottgens | Bloomberg | Getty Images Gold prices edged higher on Wednesday having touched a one-week low in the previous session, as investors awaited a decision by the U.S. Federal Reserve on a widely anticipated rate cut. Spot gold was up 0.2% at $1,490.23 an ounce. U.S. gold futures edged 0.2% higher to $1,493.20. The U.S. central bank is set to share the statement of a two-day monetary policy meeting at 1800 GMT. Investors expect the Fed to lower rates by a quarter of a percentage point for a third time this year. “Prices are relatively rangebound ... If the Fed signals a hawkish cut, that could spell more dollar strength in the near term and could suppress gold prices”, said Han Tan, market analyst at FXTM. “However, if the Fed Chair Jerome Powell still has cognisance of the downside risks to the U.S. econom

Market Insider | Biggest Moves Premarket: Stocks making the biggest moves premarket: GE, Yum, Molson Coors, Garmin, Amgen & more

Peter Schacknow 4-5 minutos - Source: CNBC Check out the companies making headlines before the bell: General Electric – General Electric reported quarterly profit of 15 cents per share , 4 cents a share above estimates. Revenue also exceeded forecasts and GE raised its full-year cash flow forecast. Yum Brands – Yum earned an adjusted 80 cents per share for its latest quarter, 14 cents a share shy of consensus forecasts. Revenue also came in below estimates, hurt by a weaker-than-expected performance at its Pizza Hut and KFC units. Anixter International – The software company agreed to be acquired by private-equity firm Clayton, Dubilier & Rice for $81 per share in cash. The total value of the deal is $3.8 billion including assumed debt, with the transaction expected to close by the end of 2020′s first quarter. Molson Coors – The beer brewer fell a penny a share short of estimates, with quarterly profit of $1.48 per share. Rev

Bank News | Deutsche Bank Earnings: Deutsche Bank posts 832 million euro loss amid major restructuring

Silvia Amaro 3-4 minutos - Source: CNBC Statues stand outside a Deutsche Bank AG branch in Frankfurt, Germany. Krisztian Bocsi | Bloomberg | Getty Images Deutsche Bank reported a net loss that missed market expectations on Wednesday as a major restructuring plan continues to weigh on the German lender. It reported a net loss of 832 million euros ($924 million) for the third quarter of 2019. Analysts were expecting a loss of 778 million euros, according to data from Refinitiv. It had reported a net profit of 229 million euros in the third quarter of 2018, but a loss of 3.15 billion euros in the second quarter of this year. Here are some of the key highlights: Total net revenues: 5.3 billion euros in the third quarter vs. 6.2 billion euros a year ago. Common equity tier 1 ratio stood at 13.4% in the third quarter, vs. 14% a year ago. Total non interest expenses: 5.8 billion euros in the third quarter, vs. 5.6 billion euros a

US Market | Futures Indicator: US futures point to mixed open as investors await Fed rate decision

Sam Meredith 2minutos - Source: CNBC U.S. stock index futures were mixed on Wednesday morning, as market participants waited for the Federal Reserve ’s decision on interest rates. At around 03:00 a.m. ET, Dow futures slipped 20 points, indicating a positive open of more than 6 points. Futures on the S&P — which briefly touched an all-time high in the previous session — and the Nasdaq were both marginally lower. The moves in pre-market trade come ahead of an expected quarter-point rate cut by the U.S. central bank. It would mark the third time this year the Fed has lowered borrowing costs. Looking ahead, market expectations for another interest rate cut in December are at 23%, according to CME Group’s FedWatch tool , compared with almost 70% earlier this month. Meanwhile, a report by Reuters published Tuesday cited an unnamed U.S. administration official as saying an interim trade agreement between the U.S. and China might not