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Deutsche Bank Research discusses outlook for BOE rates
  + stars: | 2024-09-20 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDeutsche Bank Research discusses outlook for BOE ratesSanjay Raja, chief U.K. economist at Deutsche Bank, discusses the outlook for the Bank of England's interest rates.
Persons: BOE, Sanjay Raja Organizations: Deutsche Bank Research, Deutsche Bank, Bank of
Federal Reserve Governor Christopher Waller said Friday he supported a half percentage point rate cut at this week's meeting because inflation is falling even faster than he had expected. A week before the Fed meeting, markets were overwhelmingly pricing in a 25 basis point cut. Along with the decision, individual officials signaled the likelihood of another half point in cuts this year, followed by a full percentage point of reductions in 2025. Fed Governor Michelle Bowman was the only Federal Open Market Committee member to vote against the reduction, instead preferring a smaller quarter percentage point cut. "I was a big advocate of large rate hikes when inflation was moving much, much faster than any of us expected," he said.
Persons: Christopher Waller, Waller, CNBC's Steve Liesman, Michelle Bowman, Bowman, Jerome Powell Organizations: Federal, CNBC, Fed, Market, Commerce Department
CNN —The US is expected to announce a major weapons package to Ukraine as soon as next week, but it will likely delay the shipping of the equipment due to inventory shortages, according to two US officials. The US currently has $5.9 billion left in Presidential Drawdown Authority for Ukraine, the Pentagon said this week, which is set to expire at the end of the fiscal year in less than two weeks. Presidential drawdown packages were initially intended as a way of supplying Ukraine with arms and equipment in the short-term since the start of the war with Russia. More sophisticated equipment with long production times was sent through another mechanism – the Ukraine Security Assistance Initiative – that purchased weapons directly from arms manufacturers for future delivery. The US believes Ukraine will need at least $500 million worth of presidential drawdown authority per month through fiscal year 2025, according to a senior administration official.
Persons: Sabrina Singh, Biden Organizations: CNN, US, Pentagon, Defense Department, Ukraine Security, Initiative Locations: Ukraine, Kyiv, Russia, Europe
But Wall Street was mostly clueless this week when it came to predicting how big a rate cut the Fed would deliver on Wednesday. The jumbo half-point cut the Fed ultimately rolled out was not at all what traders expected a week ago. Powell: Fed officials ‘left the size of the rate cut open’ ahead of September meetingIn a closely watched speech at the Fed’s annual economic symposium in Jackson Hole, Wyoming, last month, Powell declared “the time has come” to cut interest rates. That data was apparently enough to spur some Fed officials to reconsider their position. “But we do not expect Fed officials to be intentionally opaque,” said Husby.
Persons: Jerome Powell, Powell, , , Price, Christopher Waller, , Powell’s, Thomas Simons, ” Simons, Michelle Bowman, “ We’re, Andrew Husby, Waller, there’s Organizations: New, New York CNN — Federal, Fed, PPI, CNBC, Jefferies, BNP Locations: New York, Jackson Hole , Wyoming
One global stock stands out as a "unique play" in the Nvidia and artificial intelligence supply chain, according to Jefferies. It's German semiconductor firm SUSS MicroTec , Jefferies said in a Sept. 17 report, calling it a "hidden gem" among European semiconductor firms. The investment bank initiated coverage of the stock at a buy rating and a target price of 76 euros ($84). The firm has "multi-layered exposure" to an advanced packaging technology called Chip-on-Wafer-on-Substrate, said Jefferies, explaining that it's used to make AI chips. SUSS sells its products to two major high bandwidth memory suppliers and TSMC, to be used in the production of that advanced packaging.
Persons: Jefferies, MicroTec, it's, SUSS, — CNBC's Michael Bloom Organizations: Nvidia, U.S, Jefferies, NVIDIA Locations: TSMC
But regardless of the week's events, Cramer said the Fed's successful start to the easing cycle is leading the market in a positive direction. "We're in a rate cut cycle now, ok, it's very different from, from the last couple years. Next year should be better for the homebuilder than 2024 because the Fed is lowering rates, he added. Semiconductor outfit Micron will report earnings on Wednesday along with Cintas , which supplies a range of materials, including uniforms, to businesses. Retail grocery giant Costco reports on Thursday, and Cramer will be paying attention to which products are and aren't selling.
Persons: CNBC's Jim Cramer, Cramer, Raphael Bostic, Austan Goolsbee, Hewlett Packard Organizations: Costco, KB, Federal, Atlanta Fed, Chicago Fed, Apple, Semiconductor, Micron, Retail, Commerce Department
HSBC in a Sept. 17 report examined the relationship between Fed rate cuts and copper and aluminum prices over the past 30 years. In its base case, Citi sees copper prices averaging $9,000 per ton for the rest of this year, citing U.S. election uncertainty and weak manufacturing sentiment. Energy Citi anticipates that oil will suffer renewed price weakness in 2025, with Brent falling to around $60 a barrel. Based on what happened in 2019, trade tariffs lowered global oil demand growth by 0.2 million barrels a day. A slowdown in China, among the world's largest importer and consumer of oil, has been blamed on slowing global oil demand.
Persons: annualized, it's, that's, Brent Organizations: U.S . Federal Reserve, Citi, HSBC, Commodities, Energy Citi Locations: China, U.S, Europe, Iran
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAppreciation of the yen could slow the pace of BOJ rate hike, economist saysTakahide Kiuchi, executive economist at Nomura Research Institute, expects that the Bank of Japan will hike rates in January 2025.
Persons: Takahide Kiuchi Organizations: Nomura Research Institute, Bank of Locations: Bank of Japan
The Dow Jones Industrial Average topped 42,000 this week for the first time ever, while the S & P 500 breached the 5,700 milestone, after the Federal Reserve cut interest rates by a half-percentage point. "A lot holds in the balance of the next couple or few days," said Katie Stockton, founder at Fairlead Strategies. .SPX 5D mountain S & P 500 On Friday, the 30-stock Dow, the S & P 500 and the Nasdaq Composite each closed higher by more than 1% for the week. The breakout is "'pending confirmation,'" Stockton said. Overall, Stockton expects that the longer-term setup for the S & P 500 is "a bit overdone."
Persons: Katie Stockton, Stockton, That's, Sam Stovall, Gee, Christopher Waller, Jerome Powell, Stovall Organizations: Dow Jones, Federal Reserve, Dow, Nasdaq, Stockton, CFRA, Fed, Chicago, PMI, Richmond Fed, New, Micron Technology, Transportation, . Kansas City Fed Manufacturing, Costco Wholesale, PCE Deflator, PCE Locations: . Kansas, Michigan
Lennar — The homebuilding stock slipped 3% despite beating analysts' expectations for its fiscal third quarter. Trump Media & Technology Group — Shares traded nearly 5% lower as selling restrictions on former President Donald Trump and other early investors ended. PepsiCo — The snacks and beverage stock slipped 1% following a downgrade at Morgan Stanley to equal weight from overweight. ASML — Shares slipped 2% after Morgan Stanley downgraded the semiconductor manufacturer to equal weight from overweight. Aptiv — Shares of the automobile technology supplier rose more than 1% after an upgrade to overweight from equal weight at Wells Fargo.
Persons: John Donahue, Elliott Hill, Lennar, LSEG, Donald Trump, MillerKnoll, Tesla, Morgan Stanley, Lee Simpson, Piper Sandler, Chewy, Buddy Chester, CNBC's Michelle Fox, Sarah Min, Jesse Pound, Samantha Subin Organizations: Nike —, FedEx —, Trump Media & Technology, , Constellation Energy, Microsoft, — Auto, Mercedes, General Motors, PepsiCo, Contessa Pharmaceuticals, Valero Energy Locations: China, Wells Fargo
The Federal Reserve's big interest rate cut this week has reintroduced the notion of the " Fed put " into the stock market, longtime bull Tom Lee said. That means, the Fed's mandate is now primarily supporting a strong labor market," Lee wrote to clients Friday. Broadly speaking, the "put" refers to the desire of the Fed to loosen financial conditions, which in turn supports risk assets like stocks. In particular, he cited "an important lifeline" to three sectors that Lee said actually are in a recession: durable goods, auto sales and housing. This is a long winded way of saying the Fed is not 'pushing on a string ,'" Lee wrote.
Persons: Tom Lee, Lee Organizations: Federal, Fundstrat Global Advisors, Fed
CNBC Daily Open: One day makes all the difference
  + stars: | 2024-09-20 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +3 min
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. "Recalibration" Fed Chair Jerome Powell's use of the word "recalibration" seemed to reassure investors that the central bank's 50 basis point cut wasn't that worrying. It signaled the Fed wasn't responding to a slowing economy, but shifting focus to ensuring employment doesn't dip further, wrote CNBC's Jeff Cox. At the end of Washington's song, she croons, "What a difference a day makes / And the difference is you."
Persons: BOE, Jerome Powell's, Jeff Cox, Dinah Washington, Oppenheimer, Brian Belski, Powell, , Alex Harring, Fred Imbert, Hakyung Kim, Lisa Kailai Han Organizations: Nasdaq, CNBC, JPMorgan Chase, of England, Monetary, Fed, Dow, Nvidia, Apple, BMO Locations: New York, Dinah Washington . Washington
CNN —Detroit Lions head coach Dan Campbell is selling his home in the Motor City because of what he calls “safety concerns.”Campbell told Crain’s Detroit Business on Wednesday that he and his family “loved” the house but decided to move after fans found out where he lived. “There’s plenty of space, it’s on two acres, the home is beautiful,” Campbell told the outlet. Crain confirmed that Campbell was subject to pranks and harassment as a result. “Dan and Holly Campbell are Detroit treasures,” Crain told CNN. After a lackluster first season, he has played a key role in turning Detroit into one of the best teams in the NFL.
Persons: Dan Campbell, ” Campbell, , It’s, Ashley Crain –, Campbell, Crain, “ Dan, Holly Campbell, ” Crain Organizations: CNN — Detroit Lions, Detroit Business, Dallas Cowboys, CNN, Lions, CNN Sport, Cowboys, Bloomfield Township Police Department, NFL, The Lions, NFC, San Francisco 49ers Locations: Motor City, Detroit, Bloomfield Township
Nike's CEO is stepping down, and some on Wall Street appear to be lukewarm about the news. On Thursday after the bell, the sneaker giant announced that CEO John Donahoe will be retiring on Oct. 13. Wells Fargo maintained its overweight rating and increased its target by $9 to $95, implying more than 17% upside ahead. "We expect multiple expansion commensurate with Hill's hire — as leadership has been a large point of contention and controversy surrounding the stock," analyst Ike Boruchow wrote in a note. Bernstein, which has an outperform rating on Nike, expects the turnaround "will take time," but said market sentiment will be sympathetic.
Persons: John Donahoe, Elliott Hill, Jay Sole, Sole, Morgan Stanley, Alex Straton, Straton, Wells Fargo, , Ike Boruchow, Bernstein, Aneesha Sherman Organizations: UBS, Nike, JD, Bank of America Locations: FL
In this article AAPL Follow your favorite stocks CREATE FREE ACCOUNTwatch nowApple on Friday greeted customers at its stores around the world for the debuts of the iPhone 16, Apple Watch Series 10 and AirPods 4. The software advancements will only be available on iPhone 16 and last year's iPhone 15 Pro devices. A view of Apple's new iPhone 16 at an Apple Store on the Regent Street in London, United Kingdom on September 20, 2024. Last year, UBS wrote, customers had a 41-day wait time for some iPhone 15 Pro Max preorders compared to a 26-day wait time for the iPhone 16 Pro Max this year. Devices of the new Apple Watch Series 10 model are on display after the presentation at Apple headquarters.
Persons: Siri, Rasid, Chi Kuo, shouldn't overreact, Max preorders, Max, Andrej Sokolow Organizations: Apple, Apple Intelligence, Anadolu, Getty, TF Securities Analyst Ming, Barclays, JPMorgan, Bank of America, UBS, Pro Locations: New York City, London, United Kingdom, China
Family offices are the most bullish they've been in years, putting their cash to work in stocks and alternatives as the Fed starts to cut interest rates, according to a new survey. Nearly all family offices, 97%, expect positive returns this year, and nearly half expect double-digit gains, according to Citi Private Bank's 2024 Global Family Office Survey. With interest rates heading down, family offices are also regaining their appetite for stocks. More than a third, 39%, of family offices plan to increase their allocation to developed-market equities, mainly the U.S., while only 9% plan to trim their equity exposure. That comes after 43% of family offices increased their exposure to public stocks last year.
Persons: Robert Frank, they've, Hannes Hofmann Organizations: Citi, Citi Private Bank
Watch CNBC's full interview with Marci McGregor & Brian Levitt
  + stars: | 2024-09-20 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Marci McGregor & Brian LevittMarci McGregor, Merrill & Bank of America Private Bank head of CIO portfolio strategy, and Brian Levitt, Invesco global market strategist, join CNBC's 'Closing Bell' to discuss reactions to the Fed's decision to cut rates by 50 basis-points, market outlooks, and more.
Persons: Marci McGregor, Brian Levitt Marci McGregor, Brian Levitt, CNBC's Organizations: Merrill & Bank of America Private Bank
Read previewKate Jhaveri, TikTok's head of global marketing, is leaving the company this month as part of a leadership shake-up, according to an internal memo shared with staffers. "Together, we decided the best way to achieve this vision is to remove the head of global marketing role, and bring everyone within Global Brand & Comms under one leader." Its former VP of global communications, Hilary McQuaide, exited the company that same month, the executive posted on LinkedIn. Together, we decided the best way to achieve this vision is to remove the head of global marketing role, and bring everyone within Global Brand & Comms under one leader, aligning our work and goals toward one comprehensive vision. AdvertisementFinally, we are also making a change to our social media team to enable a more scalable model for Global Brand & Comms.
Persons: , Kate Jhaveri, Zenia Mucha, Mucha, Jhaveri, Zuber Mohammed, Hilary McQuaide, ByteDance, Kate, Dexter Fedor, Manish Gupta, Alistair Lennie, Zuber, Alastair Boyle, Jordan Guo, Carol Baracat, Helen Lawrence, Erin Fors Organizations: Service, Global, Business, Disney, NBA, LinkedIn, CSR, AMS, EMEA, Global Brand Locations: Beijing
Read previewNikki, a recent college graduate, has been struggling to find a job after completing her degree in biochemistry this year. While a cooling job market has made it harder for Americans of all ages to find work, young college grads are among the groups being hit the hardest. This means young college grads have been more likely to be unemployed than the broader population, even as the job market has returned to a more normal post-pandemic state over the past two years. "If you don't have a job, if you're a new grad, finding a job is actually unusually difficult." AdvertisementAre you a recent college graduate who's struggling to find a job?
Persons: , Nikki, She's, Zers, grads, Julia Pollak, Pollak, Gen Zers, that's, Nick Bunker, who's Organizations: Service, Business, Federal Reserve Bank of New, LinkedIn, Federal Reserve Locations: Federal Reserve Bank of New York
New York CNN —Self-service kiosks at McDonald’s and other fast-food chains have loomed as job killers since they were first rolled out 25 years ago. The kiosks show the unintended consequences of technology in fast-food and retail settings, including self-checkout. Chains are now experimenting with artificial intelligence at drive-thru lanes, and the experience with kiosks holds lessons for them. It raised a familiar refrain that those workers would be replaced by technology, such as self-service kiosks. Fast-food chains and retailers need to do a better job communicating what the potential benefits of kiosks and self-checkout are to consumers and employees, Andrews said.
Persons: New York CNN —, McDonald’s, Robert Lynch, you’ve, Eva Marie Uzcategui, , RJ Hottovy, ” Hottovy, — don’t, , Ed Rensi, Christopher Andrews, Andrews Organizations: New, New York CNN, Subway, Starbucks, Shack, Bloomberg, Getty, Temple University, Labor Department, Drew University Locations: New York, McDonald’s, United States, California
The regular season came to a close on Thursday night with all 12 teams in action. Diana Taurasi, widely considered to be one of the best women’s basketball players of all time, addressed the Phoenix crowd on the court after what was possibly her final regular season game ever. It has been speculated that this will be Taurasi’s final season as an active player. Record crowd in attendance for Caitlin Clark’s final rookie regular season gameThis season has seen record highs in attendance and viewership, continuing right until the end of the regular season. Clark drives to the basket in the final regular season game of her rookie year.
Persons: Diana Taurasi, “ There’s, there’s, , Taurasi, Christian Petersen, that’s, Caitlin Clark’s, Caitlin Clark, Sabrina Ionescu, Clark, , Charles Brock, , Christie Sides, Sika Koné, Tina Charles, Charles, Sylvia Fowles, Rich von Biberstein, ” Charles, Fowles Organizations: CNN, WNBA, Mercury, Seattle Storm, Minnesota Lynx, Capital, Washington DC, Mystics, Indiana Fever, Washington, Atlanta Dream, New York Liberty, Atlanta, Liberty, New, Phoenix Mercury, Connecticut Sun, Las Vegas Aces Locations: Washington, Thursday’s, New York
Morgan Stanley upgrades Centessa Pharmaceuticals, to overweight from equal weight Morgan Stanley said in its upgrade of Centessa that it's bullish on the biopharma company's narcolepsy treatment. Morgan Stanley downgrades Pepsi to equal weight from overweight Morgan Stanley said it sees "topline softness." Morgan Stanley names Nio a research catalyst idea Morgan Stanley said it's bullish on Nio after the China electric vehicle company debuted its latest model, the L60. Morgan Stanley downgrades FedEx to underweight to from equal weight Morgan Stanley downgraded FedEx following its disappointing earnings report on Thursday. Morgan Stanley reiterates Sunrun as overweight Morgan Stanley said the solar company has more room to run and that it's long term bullish on the company's partnership with Costco.
Persons: Jefferies, Morgan Stanley, Morgan Stanley downgrades Pepsi, Key, it's bullish, Riley, Reddit, Nio, it's, Bernstein downgrades Darden, Bernstein, Olive, DRI, Morgan Stanley downgrades ASML, Wells, Susquehanna, Evercore, Sunrun, Tesla, Mercado Organizations: Duke Energy, Centessa Pharmaceuticals, Amkor, China, UBS, Apple, RBC, FedEx, Deutsche Bank, American Airlines Deutsche, Susquehanna, Darden, Costco, Bank of America, Citi, Nike, Mercado Libre, Clearway Energy Locations: Nio, tailwinds, Olive, Argentina
London CNN —The European Union will loan Ukraine up to €35 billion ($39 billion) to help rebuild its economy, the bloc’s executive arm announced Friday. Western nations froze Russia’s assets in bank accounts located in Europe and the United States as part of a massive wave of sanctions enacted after Russian President Vladimir Putin ordered the full-scale invasion of Ukraine in 2022. Von der Leyen’s visit to Kyiv comes just as the winter heating season starts in Ukraine. Russia’s bombardments targeted at the country’s energy infrastructure have intensified in recent months, leaving Ukrainians vulnerable to power outages. On Thursday, the International Energy Agency said this coming winter will be the “sternest test yet” for Ukraine’s energy system.
Persons: Ursula von der Leyen, , Vladimir Putin, Von der Organizations: London CNN, European Union, International Energy Agency Locations: Ukraine, Kyiv, Europe, United States
The Barclays 6 Month Online CD is paying 5.10% APY, but it may not be for long. This is because CD rates are directly impacted when the Federal Reserve changes rates. Most notably, the well-known online bank Barclays Bank still has a 6-month CD paying 5.10% annual percentage yield (APY) on a 6-month CD, but it may not be for long. How to earn 5.10% APY on a Barclays CDSince Barclays is an online-only bank, you'll have to apply for the Barclays 6 Month Online CD online. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving.
Persons: you'll, Sophia Acevedo, Sophia, Axel Springer, Education Sophia Organizations: Fed, Barclays, Federal Reserve, Barclays Bank, Business, Finance, Bank, Savings, Education, California State University Fullerton, National Association of Hispanic Journalists, Angeles Locations: California
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Persons: , Jerome Powell Organizations: Business, Service
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