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Biotechnology stocks offer an under-the-radar and unappreciated way to profit from the central bank's looming campaign to start cutting the cost of borrowing, according to Goldman Sachs. Investors may have already begun to anticipate the effect of lower rates on some biotech companies. IBB .SPX mountain 2024-06-30 The iShares Biotechnology ETF has risen more than twice as much as the S & P 500 this quarter. The iShares Biotech ETF is up 7.7% this quarter while the Nasdaq Biotech Index has advanced 7.4%, more than double the 3.2% gain in the S & P 500 since June 30. Year-to-date, Regeneron is up 30.6% and Vertex by 18.3%, both outperforming the 18.1% rise in the S & P 500.
Persons: Goldman Sachs, John Flood, Goldman, Flood, Regeneron Organizations: Biotechnology, Federal Reserve, Gilead Sciences, Nasdaq Biotechnology, IQVIA Holdings, Regeneron Pharmaceuticals, Amgen, Vertex Pharmaceuticals, iShares Biotech, Nasdaq Biotech Locations: Gilead
London CNN —“Millions” of people could fall victim to scams using artificial intelligence to clone their voices, a UK bank has warned. Starling Bank, an online-only lender, said fraudsters are capable of using AI to replicate a person’s voice from just three seconds of audio found in, for example, a video the person has posted online. These types of scams have the potential to “catch millions out,” Starling Bank said in a press release Wednesday. “People regularly post content online which has recordings of their voice, without ever imagining it’s making them more vulnerable to fraudsters,” Lisa Grahame, chief information security officer at Starling Bank, said in the press release. As AI becomes increasingly adept at mimicking human voices, concerns are mounting about its potential to harm people by, for example, helping criminals access their bank accounts, and spread misinformation.
Persons: London CNN —, Scammers, ” Lisa Grahame, OpenAI Organizations: London CNN, Starling Bank, , Bank, Research Locations: Starling
Microsoft — Shares were up about 2% after the tech giant increased its quarterly dividend by 10.7% to 83 cents per share. Shopify — Shares of the e-commerce stock gained 2.6% after Redburn Atlantic upgraded Shopify to buy from neutral. Shopify should continue gaining market share as the U.S. social e-commerce market appears poised for explosive growth over the next few years. AppLovin — The mobile software company rose more than 2% after UBS upgraded shares to buy from neutral. Gannett — Citi upgraded the newspaper company to neutral from sell, sending shares higher by 4%.
Persons: Jefferies, Dell, AppLovin, Gannett, , Fred Imbert, Sarah Min, Sean Conlon, Michelle Fox Theobald Organizations: Microsoft, Intel, Dell Technologies, Mizuho Securities, UBS, Gannett — Citi Locations: 4Q24
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJapanese yen could trend towards 135 against the dollar on narrowing rate differentials: DBSChang Wei Liang of DBS Bank says the yen carry trade is largely over and any possible rate hike by the Bank of Japan could result further yen appreciation.
Persons: Wei Liang Organizations: DBS Bank, Bank of Japan
Upstart Holdings – Shares of the personal finance firm fell 5% after the announcement of a new debt offering. Sprouts Farmers Market – Shares of the supermarket chain rose nearly 5% following an upgrade to outperform from in line at Evercore ISI. The investment firm wrote that Sprouts, which specializes in organic products, could be a beneficiary of a trend towards healthier eating. Apple – Shares slumped 3% following reports of sluggish demand for some of the company's latest iPhone models. Yelp – Shares dropped 4% after Bank of America initiated coverage of Yelp with an underperform rating.
Persons: Nuvalent, Bausch, Goldman Sachs, Morgan Stanley, Donald Trump, Ming, Chi Kuo, , Alex Harring, Samantha Subin, Yun Li, Lisa Kailai Han, Pia Singh, Jesse Pound Organizations: Financial Times, FT, Alcoa, Intel –, Bloomberg, Intel, Pentagon, Micron Technology, Evercore ISI, Trump Media & Technology, Apple –, TF Securities, Apple, JPMorgan, Bank of America Locations: California
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day) Worldwide Exchange Word of the Day: Fed Mimi Duff from GenTrust said the Federal Reserve decision on Wednesday will dominate the market action this week. Even as the Fed is expected to enter a rate cutting cycle, Duff sees the biggest opportunities in defensives like consumer staples and healthcare. INTC 1D mountain Intel, 1 day Intel continues to be a laggard in the chip space with shares down 60% year to date.
Persons: Mimi Duff, GenTrust, Duff, Jerome Powell, Big Tech Alan McKnight, Jackson, mMoney, McKnight Organizations: PRO, Worldwide, Federal, Big Tech, Regions Bank, Big, Intel, Bloomberg, Pentagon
MUFG Bank says it expects a 50-basis-point Fed rate cut
  + stars: | 2024-09-16 | 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 EmailMUFG Bank says it expects a 50-basis-point Fed rate cutEhsan Khoman, director and head of MENA research at MUFG Bank, says the U.S. Federal Reserve is likely to "go heavy."
Persons: Ehsan Khoman Organizations: MUFG, MUFG Bank, U.S . Federal
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailECB to cut 'even more aggressively' in 2025 if the economy weakens, ING Bank saysCarsten Brzeski, global head of macro research at ING Bank, discusses European Central Bank's interest rate cut, saying it was a "very dovish" one.
Persons: Carsten Brzeski Organizations: ECB, ING Bank
Four U.K.-listed stocks — one of which was given 110% upside — are among Goldman Sachs' European conviction list. While the S & P 500 fell by 5.85% in the first week of August, the FTSE 100, an index of the 100 largest London-listed stocks, outperformed by falling by only 2.4%. .FTSE .SPX 5Y line The investment bank said the FTSE 100 "can also provide good diversification from the concentrated and Tech-heavy S & P 500 ." The bank notes that SSE's "leading capabilities vs. peers position it well to capture this investment growth." The investment bank said the company "is at the start of a revenue acceleration" supported by increasing market share and expansion into new markets.
Persons: Goldman Sachs, Goldman, Sharon Bell, Tufan Erginbilgic, LSEG Goldman, LSEG Organizations: FTSE, SPX, Tech, BT Group, Royce, London Stock Exchange, BT, London Stock Exchange Group, Bloomberg, Microsoft Locations: British, London, United States
Bank of America upgraded Johnson Controls to 'Buy' for its exposure to AI data centers. AdvertisementJohnson Controls is the stock to buy for safe exposure to the AI boom, according to a note this week from Bank of America. That is more than triple the data center exposure its closest competitors have, including Trane Technologies and Carrier. AdvertisementAs for a potential catalyst for Johnson Controls, aside from its data center exposure, Bank of America highlighted its ongoing search for a new CEO. Advertisement"JCI hypothetically re-rating fully in line with the average of these HVAC peers would imply a 57% higher valuation," Obin said.
Persons: , Johnson, Andrew Obin, Obin Organizations: of America, Johnson, Bank of America, Service, JCI, Trane Technologies, Johnson Controls Locations: chillers
Bitcoin will reach $125,000 by the year's end if Trump wins the election, Standard Chartered said. Bitcoin would reach $75,000 under Kamala Harris, as she is more open to crypto than president Biden, SC said. Under the self-branded "crypto president," bitcoin could reach $125,000 by the year's end, analyst Geoff Kendrick wrote on Thursday. If Harris wins the presidency, bitcoin will reach $75,000 by the end of the year, Kendrick estimates. Even if Trump wins, Kendrick tempered his prior outlook that bitcoin can reach $150,000 by the year's end.
Persons: Bitcoin, Kamala Harris, Biden, , bitcoin, Donald Trump, Geoff Kendrick, Trump, Gary Gensler, Kendrick, Joe Biden, Harris, Bernstein, Gautam Chhugani Organizations: Trump, Chartered, SC, Service, Securities and Exchange Commission, BTC, MicroStrategy, BlackRock's ETF, Democratic, Treasury
The AI boom is still in its infancy, following the path of the internet in the 1990s, BofA said. AI's impact will be felt sooner than past tech booms, the bank says. Skepticism about AI has mounted recently as investors get impatient to see AI returns. "Skeptics declare that GenAI's revenue potential doesn't justify the current level of AI infrastructure investment," the report says. On Tuesday, Morgan Stanley chief US equity strategist Mike Wilson said the AI investment theme has been "overcooked," and suggested investors should retreat into defensive stocks.
Persons: BofA, , Morgan Stanley, Mike Wilson Organizations: Service, Bank of America, ChatGPT
Dutch digital bank Bunq is plotting re-entry into the U.K. to tap into a "large and underserved" market of some 2.8 million British "digital nomads." "Bunq focusses on digital nomads who tend to roam the world," Ali Niknam, Bunq's CEO and co-founder, told CNBC via emailed comments. And in the U.K., Bunq is awaiting a decision from financial regulators on an application to become a licensed e-money institution, or EMI. Many of these positions will be part of a "tailored digital nomad" program that allows staff to work from anywhere in the world, Bunq said. Bunq earlier this year reported its first full year of profitability, generating 53.1 million euros ($58.51 million) in net profit in 2023.
Persons: Pavlo Gonchar, Bunq, Britain's, Ali Niknam, Niknam, Coinbase, Klarna, Bunq's Niknam Organizations: Getty Images, CNBC, European Union, U.S, EMI, PayPal Locations: United States, Amsterdam, Sofia, Istanbul, Munich, Paris, Dublin, Madrid, London, New York City
London CNN —The European Central Bank (ECB) cut interest rates Thursday, lowering borrowing costs for the second time in recent months as inflation slows and Europe’s economy stumbles. The ECB cut rates for the first time in five years in June, but kept them unchanged at its last meeting in July. However, it marginally downgraded the outlook for economic growth in the eurozone to 0.8%, from 0.9% projected in June. “Financing conditions remain restrictive, and economic activity is still subdued, reflecting weak private consumption and investment,” the ECB said. Earlier this week, former ECB chief Mario Draghi said in a report that slowing economic growth and productivity present an “existential challenge” to Europe.
Persons: Bert Colijn, Christine Lagarde’s, Mario Draghi, Draghi Organizations: London CNN, European Central Bank, ECB, Olympic, Paralympic Games, P Global, Hamburg Commercial Bank, , ING Locations: Germany, Paris, Europe, United States, China, EU
The presidential candidate has pledged to unleash universal tariffs on all US trade if elected. The firm outlined which five sectors are the most exposed to losses if Trump wins and implements tariffs. To be sure, US firms have some way of navigating higher costs associated with tariffs, Barclays said. Other economists have loudly criticized Trump's tariff idea as fuel for inflation, given that prices will rise amid a pullback in foreign products. AdvertisementAccording to Barclays, inflation would climb 0.09 percentage points in the short run, and US GDP could take a 1.2% hit in the first 12 months.
Persons: Trump's, , Donald Trump's, Kamala Harris, Trump Organizations: Barclays, Trump, Service, Democratic, Companies Locations: Mexico
The Office of the Comptroller of the Currency, a top banking regulator in the United States, said Thursday it has issued an enforcement action against Wells Fargo due to deficiencies in its risk management practices. The regulator said it had identified deficiencies relating to the bank’s financial crimes risk management practices and anti-money laundering internal controls. An agreement under the enforcement action requires the lender to receive permission from the OCC before launching new business in medium- or high-risk areas for money laundering or sanctions. Since 2016, Wells Fargo has spent billions of dollars settling civil and criminal charges related to a multiyear scheme that included repeatedly misapplying loan payments, wrongfully foreclosing on homes, illegally repossessing vehicles, incorrectly assessing fees and interest and charging surprise overdraft fees. Last year, the former head of the bank’s retail operation was sentenced to three years of probation, while the bank’s former CEO was banned from the industry.
Persons: Wells, Wells Fargo Organizations: OCC Locations: United States, Wells
Trump Media & Technology — The stock fell more than 13% following Tuesday's debate between majority shareholder former President Donald Trump and Democratic Vice President Kamala Harris. Novartis — U.S.-listed shares of the Swiss pharma company slipped nearly 2% on the heels of Bank of America's downgrade to hold from buy. Crypto stocks — Crypto stocks were dragged downward after the price of bitcoin fell slightly overnight, as crypto traders considered central bank policy in Japan . Morgan Stanley — The bank stock lost 1% following a downgrade at Goldman Sachs to neutral from buy. Solar stocks — Solar stocks rose as a group after Vice President Kamala Harris's performance at Tuesday's debate raised confidence in a Democratic victory at the U.S. presidential election.
Persons: Donald Trump, Kamala Harris, Rentokil, it's, bitcoin, Morgan Stanley, Goldman Sachs, Goldman, Morgan, Warren Buffett's Berkshire Hathaway, Kamala Harris's, — CNBC's Sean Conlon, Michelle Fox, Alex Harring, Yun Li, Sarah Min, Samantha Subin Organizations: Trump Media & Technology, Democratic, Trump Media, Nasdaq, GameStop, Novartis — U.S, Swiss pharma, of, Therapeutics, JPMorgan, Viking Therapeutics, Goldman, Bank of America, U.S, Clean Energy, SolarEdge Technology, Sunnova Energy Locations: North America, Japan
Mission Produce — The avocado producer surged 21.6% after reporting revenue for the fiscal third quarter jumped 24% from a year ago. The company reported sales of $324 million, compared with $261.4 million in the same three-month period one year before. Boot Barn — Shares rose 6% after the Western-style retailer provided an update on its recent performance ahead of a Piper Sandler Growth Frontiers Conference presentation. Boot Barn announced preliminary consolidated same-store sales growth of 4% in its fiscal second quarter. Johnson Controls International — Shares rose nearly 2% after JPMorgan upgraded the stock to buy from neutral.
Persons: Piper Sandler, LSEG . Patterson, Alibaba, Morgan Stanley, Wells Fargo, , Samantha Subin, Sean Conlon, Lisa Kailai Han, Jesse Pound, Yun Li, Scott Schnipper Organizations: Growers, Oracle, LSEG, Apple, Hewlett Packard Enterprise, Juniper Networks, Revenue, UTI Energy, Hong, Reuters, Johnson, JPMorgan, Anheuser, Busch Inbev SA, Equity Locations: California, U.S, Alibaba —, China, Hong Kong, Shanghai, Shenzhen, Wells
But Deutsche Bank is offering four reasons to stay positive even as recession fears flare. AdvertisementIt's an uncomfortable time for equity investors, with the S&P 500 fresh off its biggest weekly decline in 18 months. Although the Federal Reserve is on the brink of long-awaited rate cuts, concerns have crept into the market that the economy is at risk of a sudden unpreventable softening. But with interest rate cuts ahead and recession fears in the air, investors are more likely to reposition. Rate cuts are on the horizonAdvertisementAll of Wall Street appears to be bracing for the Federal Reserve to lower rates at its policy meeting next week.
Persons: , Deutsche, There's Organizations: Deutsche Bank, Service, Federal, Wall, Deutsche, Federal Reserve, Treasury, Mortgage Bankers Association
The S&P 500 probably isn't hitting fresh highs anytime soon, according to Wells Fargo. AdvertisementThe stock market's long winning streak may be done for now, Wells Fargo said. That's because to a trifecta of headwinds will cap gains for the S&P 500. "For these reasons, we find it unlikely that the S&P 500 Index will reach meaningful new highs in the coming months." Since then, growth fears have overshadowed excitement about rate cuts, and questions about the sustainability of the AI rally have dented tech bullishness.
Persons: , Wells Fargo, Stocks, Kamala Harris, Donald Trump Organizations: Service, Federal, Fed, Investor Locations: Wells Fargo
Russian banks are urging the country's central bank to boost yuan liquidity amid shortages. But Russia's central bank is advising lenders to limit yuan-denominated loans. The Russian central bank said currency swaps are a short-term, not a long-term solution to yuan supply. But Russia's central bank is passing the buck back to the country's banks. In a report published on Friday, Russia's central bank advised lenders to limit the issuance of yuan-denominated loans.
Persons: Organizations: Service, Central Bank of Russia, Business Locations: Russian, Russia's
Analysts at major Wall Street banks are getting more cautious on chip darling ASML , raising concerns about the critical chip equipment maker's demand outlook. Earlier this week, investment bank UBS downgraded ASML to "neutral" and cut its price target on the stock to 900 euros ($1,000.78) from 1,050 euros previously. Other Wall Street banks have subsequently come out with their own respective analyses on ASML — and they're more downbeat than they were before. The bank remains bullish on the stock, though, keeping ASML in its top pick for EU semiconductor equipment stocks. UBS cautioned ASML's machines could face a slowdown in demand due to an "architecture shift" to gate all around architecture, or GAA.
Persons: Morgan Stanley, ASML, ASML's, Morgan Stanley's, EUV, Biden, Christophe Fouquet, Jefferies Organizations: UBS, Intel, Bank of America, ASML's, Samsung, Nvidia, SK Hynix, Base Management, Dutch, Citi, Investment Locations: ASML, U.S, China, New York
Chase Bank said it was reviewing incidents of individuals who may have participated in an online check fraud "glitch" trend and referring them to law enforcement authorities. In fact, the meme was prompting users to commit check fraud by requesting cash they didn't have after depositing a phony check for the amount they were seeking. Criminal statutes on the severity of punishment for instances of check fraud vary by state. In California, misdemeanor check fraud charges can carry a one-year prison term plus financial penalties. In New York, misdemeanor check fraud can entail up to three months in jail and a fine.
Organizations: Chase Bank, Chase, Wall Street, NBC Locations: TikTok, In California, New York
Critical chip equipment supplier ASML is set to face softer demand from buyers of its products in the coming years — and the artificial intelligence boom won't be enough to offset these downside risks, according to analysts at investment bank UBS . Such memory chip makers include Samsung and Nvidia supplier SK Hynix. ASML is behind a key technology involved in chip manufacturing known as EUV, or extreme ultraviolet radiation. DRAM is a type of memory chip that's needed for a computer to function. Shares of the company were down more than 6% Wednesday, alongside a raft of other chip stocks , following a deep slide in Nvidia shares Tuesday .
Persons: ASML Organizations: UBS, Samsung, Nvidia, SK Hynix, U.S, CNBC Locations: ASML, China, Netherlands, U.S
Cleanspark released its mining update for August, which showed that it mined 478 bitcoins last month. Vaxcyte – Shares were recently up more than 36% and earlier hit a record high after the vaccine company reported positive results from the Phase 1/2 study for its 31-valent pneumococcal conjugate vaccine candidate. Semiconductor stocks – Shares of some of the biggest chipmakers fell during the first trading session of the month. Last week, shares fell 19% on news of its filing delay and Hindenburg's disclosed short position. United States Steel – Shares fell around 6% after Vice President Kamala Harris opposed the planned sale of U.S. Steel to Japan's Nippon Steel at a Labor Day rally for union members in Pittsburgh.
Persons: Cleanspark, Vaxcyte, Leerink, Morgan Stanley, Redfin, Charles Liang, Hindenburg's, Hindenburg, Kamala Harris, Harris, Lisa Kailai Han, Pia Singh, Jesse Pound, Fred Imbert, Michelle Fox Organizations: Leerink Partners, Boeing, Riley Securities, Semiconductor, KLA, Nvidia, Micron Technology, Taiwan Semiconductor Manufacturing, Broadcom, Hindenburg, Securities and Exchange, United States Steel, Steel, Japan's Nippon Steel, Labor, U.S Locations: Wells, U.S, Pittsburgh, American
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