Finance

Does the Fed Care about the Rest-of-the-World?

That’s a title I borrowed from a paper by Barry Eichengreen; the actual title is “International environment and US monetary policy: a textual analysis” written by Laurent Ferrara and Charles-Emmanuel Teuf: What role does the international environment play in shaping US monetary policy decisions? To measure its influence, we construct an international indicator extracted from minutes of Fed monetary policy committee meetings. In a Taylor rule model, we show that the indicator has a significant and negative impact on the fed funds rate. Discussions centred more on the international environment may thus be associated with greater monetary policy easing. Chart: International environment indicator and major events affecting the global economy Note: The grey areas correspond to major internation...

Steve Cohen Not Crypto Enough For Local Luddite

By AntanaCoins (Own work) [CC BY-SA 3.0], via Wikimedia Commons Steve Cohen is trying, you guys. Trying to figure out these cryptocurrencies that were all the rage nine months ago. Trying to glean how to make money on them. Even trying to give other people a shot thereat. But the Big Guy is old school and it works for him. That means anyone who wants to join the revolution, or at least make (or lose!) a ton of money on it, is going to have to do so somewhere other than 72 Cummings Point Road. And that place is where dreamers and charlatans have flocked for a hundred years: Lipstick City, baby! That’s where ex-Point72er Travis Kling is heading to make his bitcoin billions. And his timing couldn’t be better, having quit at the top of the market back in December and planning to launch his Iki...

FANGS? Square should be added to the famous tech stock basket, analyst says

Square could rattle the payments industry in the same way Facebook, Amazon, Netflix and Google shook up other traditional markets, according to one analyst. Because of that potential, Nomura Instinet is advocating an “S” for Square be added to the high-growth, so-called “FANG” group. “Similar to FANG stocks that have disrupted traditional markets with massive global TAMs, SQ’s fully cohesive solutions and rapid rate of innovation suggest that it is en route to disrupt the global payments ecosystem,” said Nomura Insitnet analyst Dan Dolev. FANG is an acronym for high-performing technology stocks — Facebook, Amazon, Netflix and Alphabet (formerly known as Google) — that have led the record-breaking bull run of the last 9 years. Dolev cited SquareR...

App-only banks are growing at a surprising rate in Europe, threatening big banks

LONDON — Greg Stevenson was trying to refinance the mortgage on his four-bedroom home in eastern England when things started going awry. An attempt by his bank, TSB, to shift data to a new computer system had gone spectacularly wrong. For several maddening days, he could not connect to his account, transfer funds or reach anybody at the bank for help. “I felt abandoned,” said Mr. Stevenson, a 31-year-old software developer. “I needed to be moving money around, and I needed access to my bank.” The systems failure in April, affecting nearly two million TSB customers, was a breaking point for Mr. Stevenson. He moved his money to Monzo, a British start-up that is among a growing number in Europe offering checking accounts and A.T.M. cards, but lack physical branches — e...

Dimon and Buffett’s call to stop quarterly guidance by companies may already be having an impact

Just months after Jamie Dimon and Warren Buffett issued a call for an end to quarterly earnings guidance, companies may be heeding the call. With third-quarter earnings season less than three weeks away, fewer companies than normal are issuing pre-announcements than the norm. Thus far, 98 members of the S&P 500 have issued guidance, a decline from the average 112 and below the typical 107 for any given quarter, according to FactSet. While the drop-off isn’t precipitous, it is the lowest level in 3½ years. Back in June, Dimon, CEO of J.P. Morgan Chase, and Buffett, legendary head of Berkshire Hathaway, called for an end to the pre-announcements as a way to halt short-term thinking in corporate America. They reasoned that companies spend too much time trying to make their quarterly...

Eddie Lampert Has Some New Ideas To Prolong Sears’ Suffering

By Jonrev at English Wikipedia [Public domain], via Wikimedia Commons Sears has taken yet another turn for the worse, you guys. Its vitals are plummeting. Even the course of treatment recommended last month won’t do the trick, seeing as how it would raise only $480 million of the $1.1 billion Sears needs to survive its debt payments over the next couple of years. Simply put, it “now faces significant near-term liquidity constraints” in addition to all of the other things that ail it. The man in charge of Sears’ medical care (who may also be the man in charge of putting it into intensive care in the first place), Dr. Eddie Lampert, has taken some pretty drastic steps in his decade-plus overseeing the apparently terminal retailer, specifically a whole series of amputations that have left Sea...

Your first trade for Tuesday, Sept 25

The “Fast Money” traders shared their first moves for the market open. Tim Seymour was a buyer of Chesapeake Energy Karen Finerman was a buyer of Michael Kors Steve Grasso was a buyer of Lennar Guy Adami was a buyer of Discovery Trader disclosure: On September 24, 2018 the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Tim Seymour is long AMZA, ACB.TO, APC, APH.TO, BABA, BAC, BIDU, BX, C, CCJ, CLF, CMG, CRON, CSCO, CX, DAL, DPZ, DVYE, EA, EEM, ERJ, EUFN, EWM, FB, FXI, GE, GILD, GM, GOOGL, GWPH, HAL, INTC, JD, LEAF, MAT, MCD, MO, MOS, MPEL, NKE, OGI, PAK, PHM, PYPL, RH, RL, SBUX, SQ, T, TER, TIF, TGOD, TRST, TWTR, UA, UAL, VALE, VIAB, VOD, X, XLE, XRT, YNDX, 700.H...

Raymond James downgrades Intel to sell due to chip manufacturing problems

Intel’s manufacturing technology issues will haunt the chipmaker for a long time, according to Raymond James. The firm lowered its rating to underperform from market perform for Intel shares, citing its delays in moving to its next generation chip process technology. “Intel’s biggest strategic problem is their delay on 10nm production – we don’t expect a 10nm server chip from Intel for two years,” analyst Chris Caso said in a note to clients Tuesday. “10nm delays create a window for competitors, and the window may never again close.” Caso does not have a price target for the stock. The analyst noted the company’s repeated delays in moving to the 10-nanometer chip process. Intel said in July that its 10-nanometer chips will be released by the ...

Looking to jump on the cannabis investing bandwagon? It’s buyer beware

If you walk into one of MedMen‘s cannabis retail locations, you will be greeted with rows of tables equipped with tablets that you can use to browse for items. While the layout may resemble an Apple or other tech store, the products are much different. MedMen’s selection includes traditional marijuana products, including pre-rolled joints and/or plants sold in jars ready for smoking. Also on sale are nontraditional items, such as water infused with Cannabidiol, or CBD, which is aimed at helping athletes’ muscles recover after activity, or topical creams that can help with everything from pain relief to skin irritation. The company has 14 locations in states such as California, New York and Nevada. But it has licenses for more than 50 stores, having just added deals for ne...

Opening Bell: 9.25.18

Instagram Founders Depart Facebook After Clashes With Zuckerberg [Bloomberg]Kevin Systrom and Mike Krieger, who have been at the company since Instagram’s acquisition by Facebook in 2012, had been able to keep the brand and product independent while relying on Facebook’s infrastructure and resources to grow. Lately, they were frustrated with an uptick in day-to-day involvement by Zuckerberg, who has become more reliant on Instagram in planning for Facebook’s future, said the people, who asked not to be identified sharing internal details.Without the founders around, Instagram is likely to become more tightly integrated with Facebook, making it more of a product division within the larger company than an independent operation, the people said. Republicans Rally Around Kavanaugh Nomination [...

Ex-Nasdaq boss: SEC’s plan to open up private markets will let loose the wolves on regular investors

Should middle class investors be able to get a piece of high-flying private startups like Uber or AirBnb? For most investors, such private offerings are currently off limits. The only way to be part of the wealth-creating machine of Silicon Valley is to wait for the IPO. But under the anti-regulatory push of the Trump administration, change may be coming. What’s at stake is the definition of the so-called “accredited investor.” The criteria for eligibility have been tweaked over the years, but today they include having a minimum of a million dollar net worth (not including one’s primary residence), or showing at least three years of income exceeding $200,000 ($300,000 with a spouse). SEC Chairman Jay Clayton is proposing that the SEC consider modernizing the definit...

4 investing mistakes to avoid

Each person’s individual investing strategy may be different, but there are things every investor should avoid. Many individuals start investing with little to no education about the markets and learn the hard way by losing money. Instead, take note of these four investing mistakes. 1. Trying to time the market. Popularized by film and social media, day trading appeals to many because of the high rate of returns. Not only that, it’s been personified as a get-rich-quick method when, in reality, that is far from the truth. Day trading or trying to time the market is highly risky and typically results in loss of principal and even more. Instead of trying to time the market, you should aim to slowly add to your portfolio and dollar cost average over time to let your money grow. Cer...