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Valued at $4 billion in 2021, Cerebras is reportedly seeking to roughly double that in its IPO. The customer, G42, is backed by Microsoft , and it's entirely responsible for the $1.43 billion purchase commitment. G42 can pick up $500 million more in Cerebras shares if it commits to spend $5 billion on the company's computing clusters. The major Wall Street banks, for their part, are finding other ways to play in the burgeoning AI infrastructure market. Fitch, who said he sold out of his Nvidia stock years ago, told CNBC that the benefits outweigh the risks.

Persons: Andrew Feldman, Ramsey Cardy, Cerebras, —, David Golden, it's, prepayment, CFIUS, Mike Gallagher, Gina Raimondo, Goldman Sachs, Morgan Stanley, JPMorgan Chase, Young, There's, Peter Thiel, Eva Marie Uzcategui, there's, Thiel, Jim Fitch, Fitch, Feldman Organizations: Cerebras Systems, Nvidia, Revolution Ventures, JPMorgan Chase, Microsoft, AstraZeneca, GlaxoSmithKline, Mayo Clinic, Treasury, Foreign Investment, Reuters, Chinese Communist Party, JPMorgan, Citigroup, Barclays, BDO, KPMG, Deloitte, Ernst, Riverstone Networks, CoreWeave, Clarium Capital Management LLC, Bloomberg, Getty, Mizuho Securities, Venture, CNBC, Devices Locations: Toronto, U.S, Sunnyvale , California, Abu Dhabi, China, Miami , Florida, Los Angeles, Florida

☆ Hurricane Milton might cost insurers up to $50 billion — but it could have been much worse, analysts said
▼ + stars: | 2024-10-11 | by ( Lian Kit Wee | ) www.businessinsider.com time to read: +4 min

Hurricane Milton's insured losses could cost between $30 billion and $50 billion, said analysts. AdvertisementHurricane Milton stormed Florida on Wednesday, leaving an estimated $30 billion to $50 billion of insured losses, according to analysts from Fitch Ratings in a Thursday note. Milton's insured losses could range from $30 billion to $50 billion, according to Fitch, making it the largest since Hurricane Ian in 2022, which caused $60 billion in damages. According to a September report by Moody's Analytics, Hurricane Helene's insured losses were between $20 billion and $34 billion. Fitch analysts said local insurers might face insufficient reinsurance coverage to handle the losses and drive up premium rates.

Persons: —, Hurricane Milton, Milton, Alejandro Mayorkas, Fitch, Ian, Morningstar DBRS, Jefferies, Ron DeSantis, Helene Organizations: Service, Hurricane, Fitch, US Homeland, White, Morningstar, Reuters, Analytics, National Hurricane Center, Gov, Moody's Analytics, P, Global, Swiss RE Locations: Florida, Tampa, Swiss, Fitch

☆ SEC fines six major credit rating agencies over failure to keep electronic records
▼ + stars: | 2024-09-03 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +3 min

New York CNN —The US Securities and Exchange Commission fined six major credit rating organizations a total of $49 million for their “significant failures” to keep electronic communications. Moody’s Investor Services and S&P Global Ratings agreed to pay the heftiest fines, a $20 million civil penalty each. Fitch Ratings agreed to pay $8 million, A.M. Best Rating Services agreed to pay $1 million, HR Ratings de México, S.A. de C.V. $250,000, and Demotech agreed to pay $100,000, respectively. That included an associate managing director making off-channel comments about credit rating clients. “Moody’s is fully committed to upholding our regulatory record-keeping obligations, and we are pleased to put this matter behind us,” a Moody’s spokesperson said in a statement.

Persons: Demotech, ”, Sanjay Wadhwa, A.M, Demotech “, Fitch, México, “ Organizations: New, New York CNN, US Securities and Exchange, Moody’s Investor Services, Fitch, S.A, SEC, Services, P Global, CNN Locations: New York, SEC’s

☆ CNBC's Inside India newsletter: Could markets sink even if Modi wins?
▼ + stars: | 2024-05-30 | by ( Ganesh Rao | ) www.cnbc.com time to read: +6 min

This report is from this week's CNBC's "Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Separately, the stock market will also deliver its verdict when markets open on Monday. Nervousness among investors over the results has meant that the India VIX index, the market's so-called fear gauge, has shot up by more than 135% since its April lows. However, some equity strategists point out that even a landslide victory for Modi's BJP could potentially sour the stock market. Meanwhile, Gautam Chhaochharia, head of global markets for India at UBS, said foreign investors are in a "wait and watch mode" ahead of India's election results despite economic fundamentals looking "very, very strong."

Persons: Narendra Modi's, Modi, Bradley Saunders, Saunders, Venugopal Garre, —, Garre, Fitch, SRH, Mark Mobius, Gautam Chhaochharia Organizations: Bloomberg, Getty, BJP, Traders, " Bank of America, Capital Economics, Modi's BJP, —, Reuters, Kolkata Knight Riders, IPL, Sunrisers, Knight Riders, CNBC, UBS Locations: Delhi, India, Kolkata, Sunrisers Hyderabad

☆ Fitch's negative outlook for China is more bad news for its stalling economy
▼ + stars: | 2024-04-10 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Read previewFitch Ratings has cut its outlook for China, adding to the gloom surrounding the world's second-largest economy. It cut its outlook from "stable" to "negative," but maintained its overall rating at "A+." The move comes after Moody's Investor Services, another major credit-rating agency, also downgraded its outlook for China to "negative" in December. As a result Fitch expects economic growth to fall to 4.5% for 2024. The ratings agency said policymakers will probably have no choice but to borrow to address its economic woes.

Persons: —, Fitch, Fitch's Organizations: Service, Business, Moody's Investor Services, Analysts, St Louis Federal Reserve, CSI Locations: China, Beijing

☆ Jim Cramer's top 10 things to watch in Wednesday's inflation-driven stock market decline
▼ + stars: | 2024-04-10 | by ( Jim Cramer | ) www.cnbc.com time to read: +2 min

Morgan Stanley raises Nvidia price target to $1,000 per share from $795. Goldman Sachs' semiconductor readthroughs from Google's conference: Arm positive, Nvidia mild positive, Advanced Micro Devices mild negative, Intel mild negative. Barclays raises Club name Ford price target to $16 per share from $15. Other price target raises on Club names on Wall Street: Danaher , DuPont and Wynn Resorts . As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

Persons: Dow, Thomas Kurian, Morgan Stanley, Goldman Sachs, Jefferies, Ed Bastian, Jim Cramer's, Jim Cramer, Jim Organizations: Nasdaq, Core CPI, Taiwan Semiconductor Manufacturing Company, Nvidia, Google, Club, Broadcom, Gaudi, Barclays, Ford, DuPont, Wynn Resorts, Jim Cramer's Charitable, CNBC Locations: Fitch, China

☆ Red states are big winners of Biden’s landmark laws
▼ + stars: | 2024-02-14 | by ( Matt Egan | ) edition.cnn.com time to read: +7 min

Fitch defined red states as those that voted for former President Donald Trump in 2020 by more than three percentage points. “The reality is manufacturing was migrating to those states even before the CHIPS Act and the IRA. Relative to the size of their state economies, Arizona, Idaho and West Virginia are the biggest winners from the IRA and CHIPS Act investments, according to Fitch. New York leads blue state winnersNone of this is to say blue states aren’t benefiting from the IRA and the CHIPS Act. Micron cited the tax credits in the CHIPS Act as well as incentives provided by New York state aimed at luring semiconductor companies.

Persons: Joe Biden, Biden, Fitch, Donald Trump, Olu Sonola, Sonola, ‘, ” Natalie Quillian, “, ”, Lauren Boebert, Quillian Organizations: New, New York CNN, Redwood Materials, Redwood, America’s, IRA, Republican, CNN, Fitch, Trump, Micron, White House, White, Lonestar, Samsung, Intel, IBM, Central, “, CS, Colorado Republican Locations: New York, South Carolina, Arizona, Georgia, Nevada , North Carolina , Michigan, Pennsylvania, Wisconsin, Idaho, Boise, America, Texas, Taylor , Texas, Austin, Russia, Canada, Arizona , Idaho, West Virginia, Chandler , Arizona, “ Arizona, . New York, Hudson Valley, Central New York, “ New York, Colorado, Pueblo , Colorado

☆ Investors seeking a high-quality bond fund can find one in this 'solid' offering, says Morningstar
▼ + stars: | 2023-12-15 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

By contrast, the other intermediate-term fund on the Morningstar FundInvestor 500 list, PIMCO Investment Grade Credit Bond fund, has more than 10% in high yield, according to Morningstar. "That's why having that exposure to investment grade corporate bonds … at this point in the cycle is a tremendous value," he added. Meanwhile, the assets in the fund that are high yield are what Narayanan calls high quality, "mispriced securities." Those are the types of names that have recently been upgraded back into the investment grade space," he said. "We tend to use that capacity in high yield to add to those types of issuers before the upgrade, anticipating the upgrade."

Persons: Morningstar, Paul Olmsted, Olmsted, Arvind Narayanan, Narayanan, VFIDX Organizations: Vanguard's, Fund, SEC, Morningstar, Oppenheimer, Vanguard, Credit Bond, CNBC Fed Survey, Fitch, Occidental Petroleum, Federal Reserve Locations: Detroit, Morningstar, Treasurys, Occidental

Moody's is the last of the three major rating agencies to maintain a top rating for the U.S. government. Fitch changed its rating from triple-A to AA+ in August, joining S&P which has had an AA+ rating since 2011. “While the statement by Moody’s maintains the United States’ AAA rating, we disagree with the shift to a negative outlook. The sharp rise in Treasury yields "has increased pre-existing pressure on US debt affordability," Moody's said. “Moody’s just downgraded our credit rating outlook to negative because of our out-of-control government spending and deficits," hardline Republican Representative Andy Harris said on X, formerly known as Twitter.

Persons: Shannon Stapleton, Joe Biden's, Fitch, Moody's, Karine Jean, Pierre, Moody’s, Wally Adeyemo, Adeyemo, Biden, Quincy Krosby, Donald Trump, Mike Johnson, “ Moody’s, Andy Harris, ”, Richard Rohan Francis, Davide Barbuscia, Andrea Shalal, David Morgan, Caroline Valetkevitch, Ira Iosebashvili, Megan Davies, Shilpi Majumdar, Shounak Dasgupta, David Gregorio, Chris Reese Organizations: REUTERS, . House, U.S ., Aaa, White, Republican, States ’ AAA, Treasury, Reserve, LPL, New York Times, Republicans, Democratic, Thomson Locations: New York City, U.S, WASHINGTON, American, Siena, Nevada , Georgia, Arizona , Michigan, Pennsylvania, Trump, Wisconsin

☆ Take Five: That rate cut trade
▼ + stars: | 2023-11-10 | by ( ) www.reuters.com time to read: +5 min

REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsLONDON, Nov 10 (Reuters) - Markets are keen to trade rate cuts and big central banks are pushing back, shining a new light on upcoming data in that tug of war. Traders, anticipating roughly three quarter-point Fed rate cuts next year, will now turn their attention to Tuesday's inflation data to confirm their view on the outlook. A sharper cooling could fan the peak rate talk, fuelled by October's employment report, which pointed to an easing in labor markets. Reuters Graphics Reuters Graphics3/ ONCE BITTENThe robust dollar suddenly appears vulnerable to the push and pull in the market's Fed rate cut bets. The data could also help justify, or challenge, recent remarks from BoE chief economist Huw Pill that mid-2024 could be the time for rate cuts.

Persons: Brendan McDermid, Lewis Krauskopf, Kevin Buckland, Danilo Masoni, Alun John, Dhara, Jerome Powell, Ping, Powell, Rishi Sunak, Sunak, BoE, Huw Pill, Sumanta Sen, Pasit, Riddhima Talwani, Prinz Magtulis, Jayaram, Dhara Ranasinghe, Tomasz Janowski Organizations: New York Stock Exchange, REUTERS, Traders, Reuters, Beijing, Reuters Graphics Reuters, Bank of England, Thomson Locations: New York City, U.S, China, New York, Tokyo, Milan, London, Washington, September's, Germany, Europe, ITALY, Italy

WASHINGTON (AP) — The credit rating agency Moody’s Investors Service lowered its outlook on the U.S. government's debt on Friday to “negative” from “stable,” citing the cost of rising interest rates and political polarization in Congress. Moody's retained its top triple-A credit rating on U.S. government debt, though it is the last of the three major credit rating agencies to do so. A reduced outlook, however, raises the risk that Moody's could eventually strip its triple-A rating from the U.S. as well. A lower rating on U.S. debt could cost taxpayers if it leads borrowers to demand higher interest rates on Treasury bills and notes. Analysts have warned that with interest rates heading higher, interest costs on the national debt will eat up a rising share of tax revenue.

Persons: Moody's, Fitch, Biden, Moody’s, Wally Adeyemo, “, ” Moody's Organizations: WASHINGTON, Moody’s Investors Service, Fitch, AAA, Poor's, Treasury, States ’ Aaa Locations: American, Washington, U.S

Steve Beshear – faces Republican Attorney General Daniel Cameron, a protege of Senate Minority Leader Mitch McConnell. In Mississippi, Republican Lynn Fitch is seeking a second term against Greta Kemp Martin, the litigation director of Disability Rights Mississippi. Democratic attorney Lindsey Cheek won the other runoff slot by taking 23% of the all-party primary vote. In Mississippi, Republican incumbent Michael Watson is seeking a second term and should easily defeat Democrat Ty Pinkins. She will face Democratic attorney, accountant, and small business owner Gwen Collins-Greenup, who finished second in the primary.

Persons: — it’s, Kentuckians, Andy Beshear, Jeff Landry, Beshear, Steve Beshear –, Daniel Cameron, Mitch McConnell, Kentucky’s, He’s, Cameron, Tate Reeves, Brandon Presley, Elvis Presley, Presley, Reeves, Democrat hasn’t, Jim Hood, Glenn Youngkin’s, Winsome Sears, Youngkin, Phil Murphy, Democratic Sen, Robert Menendez, Joe Biden, Max Baer, Carolyn Carluccio, Daniel McCaffery, Donald Trump, wouldn’t, Roe, Wade, Ohio’s, Sen, Bernie Sanders of, Janet Mills, Russell Coleman, McConnell, Pamela Stevenson, Republican Lynn Fitch, Greta Kemp Martin, Fitch, Liz Murrill, Landry, Lindsey Cheek, Michael Adams, Buddy Wheatley, Adams, Michael Watson, Ty Pinkins, Shuwaski Young, Young, Kyle Ardoin, Nancy Landry, Gwen Collins, Greenup Organizations: Democratic Gov, Democratic, Republican, Gubernatorial, Gov, Lean Democratic, Republican Gov, Public Service Commission, Democrat, Mississippi, Public, Impact Research, Lean Republican, State Legislative, Virginia, GOP, Senate, Republicans, House, George Mason University, Assembly, , New Jersey Republicans, Pleas, Superior Court, Ohio, Sierra Club, AFL, of Commerce, Avangrid Inc, Trump, Air Force, Disability Rights Mississippi, State, Iraq Locations: Mississippi, Virginia, Republican . New Jersey, Garden, Pennsylvania, Ohio, Maine, In Kentucky, Republican Mississippi, U.S, Northern Virginia, Richmond, Hampton Roads, Washington, New Jersey, , New Jersey, Montgomery County, In Ohio, Bernie Sanders of Vermont, Massachusetts, Texas, Kentucky, Louisiana, State Kentucky, In Mississippi

☆ A top Israeli economist says a recession is almost certain as leaders warn of a long war
▼ + stars: | 2023-10-19 | by ( Jason Gewirtz | ) www.cnbc.com time to read: +4 min

The war has also left much of Israel's economy in limbo. More than 360,000 reservists, the backbone of Israel's Defense Forces, are now in uniform and away from their jobs. A recession is almost guaranteed, Zeira predicts, as many parts of Israel are facing a drop in productivity. Donated clothing at Varonis' Israel headquarters Photo: Guy MelamedThe war is having a particularly big impact on Israel's dynamic tech sector. When Israel went to war with Hamas earlier this month, Varonis told its 750 Israel-based employees to work from home.

Persons: Turgut Alp Boyraz, hasn't, Joseph Zeira, Zeira, Israel aren't, Fitch, Benjamin Netanyahu, Guy Melamed, Israel that's, Israel, Varonis, Read, Melamed Organizations: Getty Images, Anadolu Agency, Getty, Israel's Defense Forces, Hebrew University, Israel's Ministry of, CNBC Locations: SDEROT, ISRAEL, Gaza, Sderot, Israel, Anadolu, Israeli, Tourism, Iran, Lebanon, Zeira, Herzliyah, Tel Aviv

Turkey still has $2.5 billion earmarked in its budget for issuance this year - but could possibly go further than that, JPMorgan's Weiler told Reuters. Markets are expecting Turkey to come to market within days, though some are pointing to a country ratings review by S&P Global Ratings scheduled for Friday. Domestic appliance maker Arcelik last week became the first Turkish corporate to launch an international bond since January 2022. September is generally a busy month for emerging market issuers, though adding to the momentum was increasing risk appetite from investors, he said. Reporting by Karin Strohecker and Jorgelina do Rosario in London; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

Persons: Stefan Weiler, Tayyip Erdogan, JPMorgan's Weiler, Weiler, Erdogan, Mehmet Simsek, Hafize Gaye Erkan, Fitch, " Weiler, Karin Strohecker, Jacqueline Wong Organizations: JPMorgan, Reuters, Wall Street, Turkiye, . Treasury, Thomson Locations: Ankara, Turkey, Africa, Rosario, London

☆ Thailand's new prime minister boosts optimism, but his populist policies pose fiscal risks
▼ + stars: | 2023-09-25 | by ( Nyshka Chandran | ) www.cnbc.com time to read: +6 min

Srettha Thavisin, Thailand's prime minister, arrives at the Thai Parliament in Bangkok, Thailand, on Monday, Sept. 11, 2023. Srettha, Pheu Thai's choice for leader, was appointed prime minister on Aug. 22 — the same day that former prime minister and Pheu Thai founder Thaksin Shinawatra returned to Thailand after 15 years of self-exile. watch nowThe prime minister also pledged to relieve the country's debt problems. "PM Srettha will slowly implement Pheu Thai's populist economic policies as he has to meet public expectations," said Dusadeeisariyakul. Other experts warned against overthinking the fiscal damage since many of Pheu Thai's populist pledges may not materialize.

Persons: Srettha, Valeria Mongelli, Srettha Thavisin, Pheu, Thaksin Shinawatra, Thaksin's, Pimrapaat Dusadeeisariyakul, Friedrich Naumann, Thaksin, Stratfor, Fitch, Teerasak Siripant Organizations: Thai, Bloomberg, Getty, Pracharat Party, United Thai Nation Party, Bhumjathai Party, Friedrich, Friedrich Naumann Foundation, Fitch, Bower Group Locations: Bangkok, Thailand, Thai

☆ Counting the cost of contagion fears from Africa coups
▼ + stars: | 2023-09-21 | by ( Libgeorge Marc Jones | Marc Jones | ) www.reuters.com time to read: +5 min

Gabon coup leader General Brice Oligui Nguema is sworn in as interim president during his swearing-in ceremony, in Libreville, Gabon, September 4, 2023. The putsch not only sent Gabon's bonds tumbling 10%, but also hit those issued by a number of other countries including neighbouring Cameroon, as jittery investors scanned for who might be next. The apparent coup trend is adding to other major concerns deterring many investors from Africa - a wave of debt crises, tense geopolitics and an extreme vulnerability to climate change. "Nearly all markets in that region are paying some price in terms of rising cost of debt," said Sergey Dergachev, portfolio manager at Union Investment. There have been scores of coups and attempted coups in recent decades including in Thailand, Ecuador, Egypt and Turkey.

Persons: General Brice Oligui Nguema, Stringer, Sergey Dergachev, Paul Biya, Macky Sall, Denis Sassou Nguesso, Eamon Aghdasi, Fitch, Moody's, Thailand's, Ravi Bhatia, Bongo, Simon Quijano, Evans, Libby George, Marc Jones, Karin Strohecker, Emelia Sithole Organizations: REUTERS, UNDP, Union Investment, Investors, Reuters, General Assembly, Burkina, P Global, Reuters Graphics, Monetary Fund, Central, CFA, Peace, Thomson Locations: Gabon, Libreville, Africa Mali, Guinea, Africa, Cameroon, Mali, Thailand, Ecuador, Egypt, Turkey, crackdowns, Senegal, Congo Republic, New York, Niger, Burkina Faso, Kenya

Fundraising and deal-making have dropped sharply at European private debt funds, new data shows. Faisal Ramzan, a partner at law firm Proskauer Rose who advises private credit funds, said he was not seeing default. "There's plenty of dry powder," said Fidelity International's head of private credit strategies Michael Curtis, referring to capital raised already. Joanna Layton, managing director of European private credit at Alcentra, one of Europe's largest private debt managers, added there was "no rush" to deploy capital. High rates have also made private credit less appealing to institutional investors, analysts said.

Persons: Henry Nicholls, Francesco Sandrini, BoE, Andrew Cruickshank, Cruickshank, Pictet, Patrick Marshall, Faisal Ramzan, Proskauer Rose, Michael Curtis, Joanna Layton, Mark Brenke, Ardian, Chris Sier, Sier, Dhara Ranasinghe, Catherine Evans Organizations: City, REUTERS, Reuters Graphics Reuters, The Bank of, European Central Bank, Graphics, Deloitte, Fitch, Federated Hermes, Fidelity International, ClearGlass, Thomson Locations: London's, London, Britain, The Bank of England

The suits allege that downed power lines operated by the company contributed to the deadliest U.S. wildfire in more than a century. The wildfire risk posed by aboveground power lines is well documented. Lives lost, billions in damagesThe Maui fires have killed at least 115 people with hundreds still missing. But Mitchell said insulating aboveground power lines with a protective covering is also an effective solution that is cheaper and can be rolled out more quickly. There is also technology coming to market that can de-energize power lines automatically when there's a problem, he said.

Persons: Mike Blake, Fitch, Berkshire Hathaway's, Paul Starita, They're, Singleton Schreiber, Alexandra von Meier, von Meier, Marshall, Michael Dougherty, Bob Frenzel, Xcel, Berkshire Hathaway, PacifiCorp, aboveground, Scott Aaronson, Aaronson, Joseph Mitchell, Mitchell Organizations: Reuters Electric, Hawaiian Electric, National Weather Service, Hawaii Electric, . Pacific Gas & Electric, PG, Xcel Energy, U.S . Forest Service, University of California, Moody's, Fitch, Electric, Alcohol, Tobacco, Firearms, Explosives, Xcel, Marshall Fire, Marshall, Boulder, Labor, Fire, American Society of Civil Engineers, ASCE, The Edison Electric Institute, California Public Utilities Commission Locations: Lahaina, Maui, Hawaii, U.S, Maui County, Hurricane, California, Berkshire, Berkshire Hathaway's PacifiCorp, Oregon, Colorado, Berkeley, Minnesota, Boulder County, Paradise, Golden

☆ Why inflation makes Britain’s debt the costliest among rich economies
▼ + stars: | 2023-08-22 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

Interest payable on UK central government debt hoovered up £7.7 billion ($9.8 billion) last month alone, hitting a record for July, the Office for National Statistics said Tuesday. That’s double the share in Italy, whose dependence on inflation-linked debt comes second only to that of the UK among advanced economies, according to Fitch Ratings. According to Fitch, Britain now spends more to service its debt than any other developed economy, as a percentage of government revenue. In a statement Tuesday, Hunt said: “As inflation slows, it’s vital that we don’t alter our course and continue to act responsibly with the public finances. Only by sticking to our plan will we halve inflation, grow the economy and reduce debt.”

Persons: That’s, ”, Ellie Henderson, Fitch, ” Ruth Gregory, Jeremy Hunt “, Gregory, Hunt Organizations: London CNN, National Statistics, United, Fitch, “, Investec, AAA, Capital Economics, CNN, Conservative Locations: Ukraine, United States, Italy, Fitch, Britain, London

☆ Morning Bid: Bonds calm down but Chinese markets smolder
▼ + stars: | 2023-08-16 | by ( ) www.reuters.com time to read: +4 min

Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. REUTERS/Mike Segar/File Photo Acquire Licensing RightsA look at the day ahead in U.S. and global markets from Mike DolanRestive bonds showed signs of calm on Wednesday, but China's struggling economy and markets continue to unnerve world markets. A twin jolt from resurgent western debt yields and China's deepening economic funk and property sector troubles have made for a bumpy August to date. After a slew of dour retail, industrial and property investment numbers earlier this week, China reported on Wednesday that home prices fell for the first time this year. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Mike Segar, Mike Dolan Restive, swooned, Goldman Sachs, Neel Kashkari, I'm, Fitch, JPMorgan Chase, Mike Dolan, Emelia Sithole Organizations: Wall, New York Stock Exchange, REUTERS, Minneapolis Fed, United States, AAA, JPMorgan, Bank of America, of, Cisco, Amcor, New, New York Fed, . Federal Reserve, Reuters Graphics Reuters, Reuters, Thomson Locations: Manhattan, New York City , New York, U.S, Wall St, China, United, New York, Canada

☆ CNBC Daily Open: More trouble ahead for U.S. banks
▼ + stars: | 2023-08-16 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Seasonally adjusted retail sales rose 0.7% for the month; economists were expecting 0.4%. Excluding autos, sales rose 1% against a 0.4% forecast. It's a good time to sell these six stocks to lock in profits — and buy five cheap ones, he said.

Persons: It's Organizations: CNBC, Fitch, JPMorgan Chase, Bank of America, JPMorgan, Commerce Department Locations: Asia, Pacific, China

☆ Buy Treasurys now. There may not be a better chance for a long while at these high rates, Wells Fargo says
▼ + stars: | 2023-08-16 | by ( Michelle Fox | ) www.cnbc.com time to read: +1 min

Investors who want to lock in high rates on longer-term Treasurys may want to act sooner rather than later, according to Wells Fargo Investment Institute. The 10-year Treasury is currently yielding around 4.2%. "We think 10-year Treasury yields in the 4% to 4.5% zone may represent a fixed-income opportunity for investors who have been seeking higher yields over the course of the last 15 years," he added. "It makes sense that investors would require a higher yield when purchasing government debt in the wake of these announcements," he said. In addition to 10-year Treasurys, the bank has also lowered its equities allocation and "parked" those funds in short-term Treasurys, getting yields over 5% in 3-month, 6-month and 12-month maturities, Wren wrote.

Persons: Scott Wren, Wren, Wells Organizations: Wells Fargo Investment Institute, Treasury, Federal Reserve, U.S . Treasury Locations: Wells Fargo

☆ CNBC Daily Open: More obstacles for U.S. banks
▼ + stars: | 2023-08-16 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. U.S. consumer strong as everU.S. consumer spending in July remained healthy, according to data from the Commerce Department. Seasonally adjusted retail sales rose 0.7% for the month; economists were expecting 0.4%. Excluding autos, sales rose 1% against a 0.4% forecast.

Organizations: CNBC, bourse, Fitch, JPMorgan Chase, Bank of America, Commerce Department, U.S Locations: Russian

☆ Why Bonds Are Still Essential Investments
▼ + stars: | 2023-08-11 | by ( Jeff Sommer | More About Jeff Sommer | ) www.nytimes.com time to read: +1 min

Give the stock market half a chance and it will dominate the financial headlines. That was certainly the case for the month of July, with the S&P 500 powering upward and bonds barely treading water. But August has been different, with the stock market hitting a speed bump and the bond market getting attention for an unwelcome reason: a downgrade of U.S. Treasury debt by the Fitch Ratings agency. Because the enduring appeal of bonds comes from their relative safety — and not from spectacular gains and losses that define the stock market’s flamboyant brand — the Fitch downgrade can’t be easily dismissed. Yet it makes sense to hold U.S. debt anyway, despite tremors in the bond market.

Persons: Fitch Organizations: Treasury, Fitch, can’t Locations: United States

☆ Soft landing hopes are drawing money back into this risky asset that’s paying 8% yield. How to navigate
▼ + stars: | 2023-08-10 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

High yield mutual funds and exchange traded funds saw inflows of $1.9 billion in July, Barclays said, citing Lipper data. High yield bonds are corporate issues that are rated below BBB, meaning they have a higher risk of default compared to their investment-grade counterparts. "When we are in junk and high yield names, we prefer loans – more senior loan positions rather than high yield." Novak added outside of high yield loans, the firm's other big fixed income play is higher quality investment grade bonds. "We don't think taking a heroic position [in high yield] makes a whole lot of sense in our view," he said.

Persons: Dow Jones, Bill Zox, it's, Zox, Bryan Novak, Novak, Brandywine's Zox, nonbank financials, Bill Ahmuty, Lawrence Gillum, Michael Bloom Organizations: Barclays, Fitch, Management, Brandywine Global, SEC, Astor Investment Management, Corporate, State, LPL

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