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Carry trades refer to operations wherein an investor borrows in a currency with low interest rates, such as the Japanese yen, and reinvests the proceeds in higher-yielding assets elsewhere. "You can't unwind the biggest carry trade the world has ever seen without breaking a few heads. A change in Japanese monetary policy prompted one strategist to warn of the "implosion" of the yen carry trade over a short-term basis. watch nowEd Rogers of Rogers Investment Advisors said the yen carry trade isn't dead yet, despite the deepening stock market sell-off. "Certainly there is going to be some momentary panic, I think, about the yen carry trade.
Persons: Richard A, Brooks, Kit Juckes, Juckes, Russell Napier, Ed Rogers, Rogers, CNBC's Organizations: Tokyo Stock Exchange, Afp, Getty, Swiss, Societe Generale, U.S, Bank of Japan, Rogers Investment Advisors Locations: Tokyo, London
A weaker-than-expected July jobs report on Friday officially triggered the Sahm rule. "We are not in a recession now — contrary the historical signal from the Sahm rule — but the momentum is in that direction," Sahm told CNBC by email on Friday. That frankly is not good enough, we can do better than avoiding a recession," Sahm told CNBC's "The Exchange." Federal Reserve Chairman Jerome Powell speaks at a news conference following a Federal Open Market Committee meeting at the William McChesney Martin Jr. Federal Reserve Board Building on July 31, 2024 in Washington, DC. In mid-June, Sahm told CNBC that the U.S. central bank risked tipping the economy into contraction by not cutting interest rates sooner.
Persons: Claudia Sahm, Sahm, , we're, CNBC's, Dario Perkins, Perkins, Jerome Powell, William McChesney Martin Jr, Andrew Harnik Organizations: Federal, CNBC, U.S . Federal, New Century Advisors, New, Lombard, National Bureau of Economic Research, Federal Reserve, Getty, U.S Locations: U.S, Washington , DC
Stocks are experiencing a broad slump, with many market participants caught off guard by the speed of the yen's rally. The Japanese national flag is seen at the Bank of Japan (BoJ) headquarters in Tokyo on July 31, 2024. 'An implosion of the carry trade'U.S. stocks kicked off the month sharply lower, as fresh data prompted fears of a worsening economic outlook. "First of all, the hawkish Bank of Japan caused an implosion of the carry trade over a short-term basis. And all of that helps push equity markets, which had been quite expensive, even lower," he continued.
Persons: Nogi, Russell Napier, Napier, Cedric Chehab, Chehab, CNBC's Organizations: Afp, Getty, U.S ., U.S, Bank of Japan, The Bank of Japan, Federal, Dow Jones, Nasdaq, BMI, hawkish Bank of Japan Locations: Tokyo, China, Japan, U.S
U.S. gymnastics superstar Simone Biles isn't the only Olympian feeling the Paris heat. A rain-soaked 2024 Olympics opening ceremony has since given way to sun and heat warnings, with temperatures in the French capital climbing to as high as 36 degrees Celsius (97 degrees Fahrenheit) in recent days. "Don't come for me about my hair," Biles said via Instagram before Tuesday's gymnastics team final. "IT WAS DONE but bus has NO AC and it's like 9,000 degrees. They give bottles to the players but the bottles don't stay cool, so, you know, you're drinking hot water out there," he added.
Persons: Jack Draper, Taylor Fritz, Suzanne, Lenglen, Simone Biles isn't, Biles, haven't, it's, Draper Organizations: US, Roland, Reuters Locations: Paris, Instagram, British
A trader works on the floor of the New York Stock Exchange (NYSE) on August 1, 2024 in New York City. U.S. stocks kicked off August sharply lower as fresh data prompted fears of a worsening economic outlook. The ISM manufacturing index, a barometer of factory activity in the U.S., came in at 46.8%, worse than expected and a signal of economic contraction. European stocks fell around 1.6% on Friday morning, tracking a slide on Wall Street. We also had bad manufacturing data out of the U.S. and some employment sub-indicators which scared markets," he continued.
Persons: Cedric Chehab, Chehab, CNBC's Organizations: New York Stock Exchange, Nikkei, Reuters, BMI, hawkish Bank of Japan Locations: New York City ., U.S, Asia
The Shell logo is displayed outside a petrol station in Radstock in Somerset, England, on Feb. 17, 2024. British oil giant Shell on Thursday posted stronger-than-expected second-quarter profit despite lower refining margins and weaker liquified natural gas trading. The company reported adjusted earnings of $7.7 billion in the first quarter of 2024. Shell said it would launch a $3.5 billion share buyback program over the next three months, a similar scheme as in the previous quarter. British rival BP on Tuesday increased its dividend and extended its share repurchasing program on the back of stronger-than-expected earnings.
Persons: LSEG, Shell's, Shell, Wael Sawan, CNBC's, Sawan, Chandra Asri Organizations: Shell, Chandra, BP, Exxon Mobil, Chevron Locations: Radstock, Somerset, England, Singapore, Rotterdam, Netherlands, Swiss, London
New Japanese 1000 Yen banknote on display inside the Currency Museum of the Bank of Japan's Institute for Monetary and Economic Studies. Japanese authorities spent 5.53 trillion yen ($36.8 billion) to shore up the yen in July, official data published Wednesday showed. The move was expected to mark the Bank of Japan's highest interest rates since 2008. It marks a stark contrast from the start of the month, when the Japanese currency fell to 161.96 per dollar for the first time since December 1986. The yen has been combating sustained pressure since the BOJ ended its monetary policy of negative interest rates in March.
Organizations: Currency Museum, Bank of Japan's Institute for Monetary, Economic Studies, Japan's Ministry of Finance, U.S ., of Japan's
British oil giant BP on Tuesday reported stronger-than-expected net profit for the second quarter and raised its dividend despite previously warning of significantly lower refining margins. The oil and gas major posted underlying replacement cost profit, used as a proxy for net profit, of $2.8 billion for the second quarter. BP reported net profit of $2.7 billion for the first three months of the year and $2.6 billion for the second quarter of 2023. BP said earlier in the month that weak refining margins and lower oil trading results would likely dent the firm's second-quarter results by as much as $700 million. BP's net debt stood at $22.6 billion at the end of the second quarter, down from $23.7 billion compared to the same period last year.
Persons: Kate Thomson, Murray Auchincloss Organizations: United Kingdom ., BP Locations: Southend, United Kingdom, Gelsenkirchen, Germany, Gulf of Mexico
An armoured police car drives through tear gas during a protest against Venezuelan President Nicolas Maduro in Caracas on July 29, 2024, a day after the Venezuelan presidential election. Federico Parra | Afp | Getty ImagesSecurity forces and protesters clashed in parts of the Venezuelan capital of Caracas, shortly after President Nicolas Maduro claimed victory in a disputed election result. Opponents of Maduro's government could also be seen carrying a large banner that read: "Venezuela, I want you to be free." A riot police officer uses tear gas against demonstrators during a protest by opponents of Venezuelan President Nicolas Maduro's government in the Catia neighborhood of Caracas on July 29, 2024, a day after the Venezuelan presidential election. Venezuelan opposition leader Maria Corina Machado talks to the media, accompanied by opposition presidential candidate Edmundo Gonzalez Urrutia, following the presidential election results in Caracas on July 29, 2024.
Persons: Nicolas Maduro, Federico Parra, Maduro's, Nicolas Maduro's, Yuri Cortez, Edmundo González Urrutia, González, Marina Corina Machado, Machado, Jesus Vargas, Maduro, John Kirby, Maria Corina Machado, Edmundo Gonzalez Urrutia Organizations: Venezuelan, Afp, Getty Images Security, Getty, CNBC, Electoral Council, Independent, Guardian, Headquarters, Associated Press, White House Locations: Caracas, Venezuelan, Venezuela, Catia
An Air New Zealand plane is seen during game two of the Women's ODI series between New Zealand and Pakistan at Hagley Oval on December 15, 2023 in Christchurch, New Zealand. Air New Zealand on Tuesday dropped its 2030 climate goal, citing delivery delays of fuel-efficient aircraft and the affordability of alternative jet fuels. "As such and given so many levers needed to meet the target are outside our control, the decision has been made to retract the 2030 target." Air New Zealand had previously said its 2030 target was to reduce carbon intensity by 28.9%, compared to 2019 levels. The airline said Tuesday that work has begun on a new near-term target.
Persons: Greg Foran, " Foran Organizations: Air, Hagley Oval, Air New Zealand, Zealand Locations: Zealand, New Zealand, Pakistan, Christchurch , New Zealand
Britain's Finance Minister Rachel Reeves has pledged to make the "necessary", "urgent" and "incredibly tough" choices to restore the country's economic stability. Britain's Finance Minister Rachel Reeves on Monday announced a raft of project cuts after detailing how the newly elected Labour government has inherited a projected overspend of £22 billion ($28.2 billion) from the center-right Conservatives. The finance minister also said she had canceled plans to sell NatWest shares to the public, saying the proposal put forward by her predecessor Jeremy Hunt did not "represent value for money." Britain's finance chief has previously ruled out increases to income tax, national insurance, VAT or corporation tax — the main sources of government revenues. However, Reeves must orchestrate a delicate balance act given the pledges from her party to also boost national investment and public sector pay.
Persons: Rachel Reeves, Reeves, Boris Johnson, Jeremy Hunt Organizations: Britain's, Monday, Labour, Railways Fund, Conservative, NatWest
President of Venezuela Nicolas Maduro rises his hand during a mass gathering convene by supporters on July 18, 2024 in Caracas, Venezuela. The 74-year-old is widely regarded as the only contender capable of denying Maduro a third six-year term. Maduro's United Socialist Party of Venezuela (PSUV) has governed Venezuela since 2013, with the former union leader taking power after the death of his mentor Hugo Chavez. His 2018 election victory was widely regarded as an unfair contest, given that many prominent opposition parties were banned from taking part. "The destiny of Venezuela depends on our victory," Maduro said at a rally earlier this month, according to the Associated Press.
Persons: Venezuela Nicolas Maduro, Nicolas Maduro, Edmundo González Urrutia, Maduro, González, María Corina Machado, Corina, Maduro's, Hugo Chavez Organizations: Democratic, Maduro's United Socialist Party of Venezuela, Associated Press Locations: Venezuela, Caracas, Venezuelan
Auto giant Stellantis on Thursday reported a steep drop in first-half net profit, citing reduced volumes, temporary production gaps and lower market share in North America. The company, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, reported first-half net profit of 5.6 billion euros ($6.07 billion), down 48% from the same period of 2023. Stellantis' adjusted operating income for the first six months of 2024 came in at 8.5 billion euros, down 5.7 billion euros on the year, primarily due to decreases in North America. For its part, Stellantis posted first-half net revenues of 85 billion euros, down 14% compared to the same period a year earlier. Of the 20 new product launches planned for 2024, Stellantis said 10 had already started production in the first six months of the year.
Persons: Ram, Stellantis, Carlos Tavares, Wall Organizations: Dodge Chrysler, Auto, Dodge, Fiat, Chrysler, Peugeot, U.S, General Motors, Ford Motor, GM, Ford Locations: Miami , Florida, North America
Bats are believed to be one of the carriers of Nipah virus, a zoonotic disease that spreads from animals to humans. Health authorities in the southern Indian state of Kerala are on high alert following the latest flare-up of the deadly Nipah virus. Kerala Health Minister Veena George said Tuesday that the close relatives of the teenager had tested negative for the virus, according to local media reports. The Nipah virus, which partly inspired the fictional "MEV-1" virus in the 2011 Hollywood film "Contagion," is considered one of the most dangerous pathogens circulating in the wild. The Nipah virus is transmitted to humans from animals such as fruit bats or pigs.
Persons: Veena George Organizations: World Health Organization Locations: Kerala, Malaysia, Nipah
A worker, called 'torchers', works in a charcoal production during scorching heat exceeding 40 degrees Celsius in Diyarbakir, Turkiye on July 18, 2024. The world registered its hottest day on record for the second time in just two days, according to the latest data compiled by the European Union's climate monitor. C3S, which has been tracking the daily global mean temperature since 1940, said Sunday's record had already shown "we are now in truly uncharted territory." The EU's climate monitor has warned that new temperature records are inevitable as the planet keeps warming. The fresh all-time high comes as excessive heat has gripped large parts of the U.S., Russia and southern Europe in recent days.
Locations: Diyarbakir, Turkiye, U.S, Russia, Europe
Treasury yields slipped on Wednesday as investors looked ahead to a fresh batch of economic data and considered the outlook for the U.S. economy. The yield on the benchmark 10-year Treasury note traded marginally lower at 4.237% at 4:50 a.m. ET, while the yield on the 2-year Treasury note fell less than 1 basis point to trade at 4.439%. Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%.
Locations: U.S
A team of international scientists has found that oxygen is being produced in complete darkness approximately 4,000 meters below the ocean's surface. An international team of scientists has discovered that oxygen is being produced by potato-shaped metallic nodules thousands of feet below the surface of the Pacific Ocean. A team of scientists led by Professor Andrew Sweetman at the U.K.'s Scottish Association for Marine Science found that oxygen is being produced in complete darkness approximately 4,000 meters (13,100 feet) below the ocean's surface. "For aerobic life to begin on the planet, there had to be oxygen and our understanding has been that Earth's oxygen supply began with photosynthetic organisms," Sweetman said. "But we now know that there is oxygen produced in the deep sea, where there is no light.
Persons: Andrew Sweetman, Sweetman Organizations: Nature Geoscience, Scottish Association for Marine Science
The world's average temperature climbed to its highest level ever recorded on Sunday, according to the European Union's climate monitor. "On July 21st, C3S recorded a new record for the daily global mean temperature," C3S Director Carlo Buontempo said Tuesday. "What is truly staggering is how large the difference is between the temperature of the last 13 months and the previous temperature records. C3S confirmed on Tuesday that Sunday's average temperature reflects a fresh high, in their records which stretch back to 1940. CS3 said there have now been 57 days since July 3 last year that have exceeded that previous record.
Persons: C3S, Carlo Buontempo, Buontempo
A church in Anafiotika neighborhood, a part of the old historical neighborhood called Plaka, in Athens, Greece on March 16th, 2024. Greece has controversially introduced a six-day working week for some businesses in a bid to boost productivity and employment in the southern European country. The regulation, which came into force on July 1, bucks a global trend of companies exploring a shorter working week. The change means a traditional 40-hour workweek could be extended to 48 hours per week for some businesses. Food service and tourism workers are not included in the six-day working week initiative.
Persons: Kyriakos Mitsotakis Organizations: Labor, CNBC Locations: Anafiotika, Athens, Greece, London
Kristalina Georgieva, chief executive officer of the World Bank Group, arrives to a briefing at the annual meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC, US, on Friday, April 19, 2024. Speaking to CNBC's Karen Tso, IMF Managing Director Kristalina Georgieva said Europe's economic performance was strengthening and inflation was clearly on a downward trajectory. One, to achieve the full potential of the single market. Right now, Europe looks like an ideas supermarket for the United States," Georgieva said. [It is] 27 countries not yet integrated in a single market."
Persons: Kristalina Georgieva, Karen Tso, Georgieva Organizations: World Bank Group, International Monetary Fund, Bank, IMF, European Central Bank Locations: Washington , DC, Europe, United States
Prime Minister Rishi Sunak speaks to farmers as he campaigns on a farm near Barnstaple on June 18, 2024 in North Devon, United Kingdom. North Devon has been held by the Conservative Party since the 2015 general election. British Prime Minister Rishi Sunak could become the country's first sitting prime minister to lose their seat at a general election, according to the findings of a shock new poll. If correct, the upcoming vote would deliver Labour a supermajority of 382, comfortably more than former Prime Minister Tony Blair's historic 1997 victory. The analysis showed that left-leaning Scottish National Party is set to win 8 seats, while Wales' pro-independence political party Plaid Cymru is expected to win 4.
Persons: Rishi Sunak, Tony Blair's, Savanta, James Cleverly's, Jeremy Hunt's Organizations: Conservative Party, British, Labour, Conservative, Liberal Democrats, Scottish National Party, Wales, Plaid Cymru, Greens Locations: Barnstaple, North Devon, United Kingdom, Richmond, Northallerton, North Yorkshire, Braintree, Essex, Godalming, Ash, Surrey
That's because the sulfur dioxide, a pollutant which forms when sulfur-containing fuel such as coal or petroleum oil is burned, reacts with water vapor to produce aerosols that reflect sunlight back into space. The aerosols have a direct cooling effect, though climate scientists note that their contribution to global cooling or warming when they are reduced remains a complex area of research. Extreme temperatures are fueled by the climate crisis, the chief driver of which is the burning of fossil fuels. All of the climate models will give you slightly different answers because of the way that they do their emissions of sulfur dioxide," Haywood said. "So, we are uncertain about how much impact the IMO regulations will have had on global mean temperatures."
Persons: Yuan, Laura Wilcox, everyone's, Jim Haywood, Haywood, You've, Jim Hansen Organizations: United Nations, International Maritime Organization, Ucg, Getty, Communications, University of Maryland, National Centre for Atmospheric Science, University of Reading, El Nino, University of Exeter, CNBC, El, NASA Locations: London, Europe, Tonga
A worker at a citrus fruit farm separates the tangerines for sale on June 6, 2024 in Piedade dos Gerais, in Minas Gerais State, Brazil. Pedro Vilela | Getty Images News | Getty ImagesThe orange juice industry is reeling. The crisis has even prompted some orange juice manufacturers and blenders to explore whether alternative fruits, such as mandarins, apples and pears, can be used to dilute the drink. Bottles of Simply Orange orange juice are displayed for sale in a grocery store on September 28, 2023 in Los Angeles, California. High incidence of citrus greening
Persons: Pedro Vilela, Kees, Mario Tama, What's, greening, , Greening Organizations: Getty, Vegetable Juice Association, CNBC, Intercontinental Exchange Locations: Piedade dos Gerais, Minas Gerais State, Brazil, Los Angeles , California, New York, Florida
Apple Watch SE is seen in a store in Krakow, Poland on April 20, 2024. Japanese electronic parts maker TDK on Monday said it had successfully developed a material for its solid-state batteries, making a breakthrough that it estimates could deliver significantly higher performance for wearable devices. Energy density refers to the amount of energy stored in a region of space. Solid-state batteries are viewed as a potentially game-changing technology, because they can store more energy than lithium-ion batteries and charge faster. The batteries are expected to be produced with an all-ceramic material, with oxide-based solid electrolyte and lithium alloy anodes.
Persons: TDK Organizations: Apple Locations: Krakow, Poland, Tokyo
The Blue Lagoon geothermal spa near the fishing town of Grindavik, Iceland, on May 23, 2024. Iceland wants tourists to flock to its bubbling hot springs, picturesque ice caps and lunar-like lava landscapes — but not at the expense of its residents or natural environment. "We are trying still to mold the taxation system for the tourism sector for the future," Iceland's Prime Minister Bjarni Benediktsson told CNBC via videoconference. As I see it, we would want to go more toward accession fees to the magnets, as we call them, around the country," Benediktsson said. Iceland's government reinstated its so-called tourism tax at the start of the year, seeking to raise funds for sustainability programs and mitigate the environmental impact of mass tourism.
Persons: Bjarni Benediktsson, Benediktsson Organizations: CNBC Locations: Grindavik, Iceland, Amsterdam, Venice
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