Finance

Three options strategies to start the week: June 11

The “Options Action” traders share three options trading strategies to kick off the week. Carter Worth and Mike Khouw like the Homebuilders and Home Depot. Mike Khouw recommends a call spread risk reversal in AT&T. Dan Nathan recommends a call spread in Philip Morris. Trader disclosure: On June 8, 2018, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Options Action” were owned by the “Options Action” traders: Dan Nathan is short SMH. Dan is long XLF Sept put spread. Dan is long FB Aug put spread. Mike Khouw: Long S&P, Bearish on TSLA.

Because It Worked So Well Last Time, Argentina Will Borrow $50B From The IMF

In the year 2000, the International Monetary Fund provided a $40 billion bailout to Argentina, to help the country reduce its growing debt burden. In exchange, the IMF demanded—as it always does—crippling austerity, because the sort of lower-rung countries that require the IMF’s help must be punished for their profligacy. This led to the collapse of the Argentine peso, double-digit unemployment, the default the bailout was supposed to prevent (much to Paul Singer’s eventual glee), the terminal distrust of the Argentine people toward the international financial system and the rise of the Kirchner clan to the Casa Rosada. But like the country’s last default, all of that was like 100 years ago. So why not try it again without learning anything from history? The International Monetary Fund and...

The woman suing Point72 and Steve Cohen speaks out about alleged gender and pay discrimination

Lauren Bonner says quitting wasn’t an option. Bonner is head of talent analytics at hedge fund Point72, a job that gives her access to data like compensation and college grade point averages for individuals hired by the firm. But as she tells it, that data unveiled a gross injustice — one that, inspired by the broader #MeToo movement, encouraged her to take action. In February, Bonner filed a gender-bias lawsuit against Connecticut-based Point72, though she continues to go to work at the firm’s Manhattan office every day. “I certainly tried to make change internally,” Bonner told CNBC in her first television interview. “I just couldn’t let it go. I couldn’t walk away from the problem. It’s too important. It was too blatant, and it’s bee...

Opening Bell 6.11.18

KKR to Buy Health Services Provider Envision for $5.57 Billion [Bloomberg] KKR & Co. will buy Envision Healthcare Corp. for $46 a share after an almost yearlong sale process for the medical company, which staffs hospitals and runs surgery centers in the U.S. The all-cash deal values Envision at $5.57 billion. Including debt, the acquisition is valued at $9.9 billion, the health-care company said in a statement Monday. Envision said the deal represents a 32 percent premium to its stock price in November, when it announced it was reviewing strategic alternatives. Investors such as KKR and strategic buyers including health insurers have been snapping up health-care assets in the U.S. Last year, KKR finished raising money for a $1.45 billion health-care fund dedicated to growth stage compa...

Forgot to withdraw from your retirement account? Here’s how to avoid that killer IRS penalty

So you failed to take a required minimum distribution from your individual retirement account. Now you’re staring at a 50 percent penalty on the money you should have withdrawn after turning age 70½. But don’t just accept the penalty, say personal financial advisors. You may be able to get the IRS to forgive your mistake. The penalty for not taking RMDs is steep. According to the IRS worksheet for figuring RMDs, a traditional IRA holder must withdraw about 3.65 percent by the last day of the year the holder turns 70½, which is the year RMDs begin. The percentage rises each year after that. For a $200,000 IRA, the first-year RMD is about $7,300. If the account holder fails to take the RMD as required, the penalty comes to half that, or $3,650, plus whatever taxes are due. “...

Here are the things you absolutely should not do after receiving an inheritance

Many people do not anticipate receiving an inheritance, or know what to do with it when they receive it. The amount of the inheritance may even be a surprise. If you’ve recently received an inheritance, it’s probably not under the best circumstances. Dealing with paperwork regarding financial and legal issues are usually not a priority during an already emotional time, and it can be easy to put off making decisions. Unfortunately, while a large lump sum may seem like a lot at the time, the money may not go as far as you think. Here are four examples of poor decisions made by those who have received a large inheritance. 1. Spending the entire inheritance immediately. This is the obvious one, but it’s easy to see why it would happen. When your bank balance goes from almost ...

The ‘Most Important Week Of The Year’? Full Week Ahead Preview

Is this the most important week of the year? Spoiler alert: almost certainly not. And that’s not to downplay the long list of important scheduled events. Rather, it’s just to say that invariably, scheduled events never end up being the ones that matter unless those scheduled events are elections. The two marquee events for markets this week are obviously the Fed and ECB meetings and I decided to eschew writing the usual Sunday evening week ahead preview in favor of in-depth posts on Powell and Draghi (and also in favor of eating pan seared Diver scallops at this new place that opened up down the street). The fate of emerging markets is in Jerome Powell’s hands and Draghi is about to try and see what happens when price discovery is allowed to resurface in European bond and credit markets. Y...

Here’s how global financial markets may react if the North Korea summit is a success … or failure

A successful outcome of U.S. talks with North Korea could give a boost to Chinese stocks and a U.S. exchange-traded fund that tracks them, according to a study looking at financial market reactions to past milestones regarding the rogue nation. A disappointing outcome could hurt European stocks, the study showed. President Donald Trump is set to hold a historic meeting with North Korean leader Kim Jong Un in Singapore beginning Monday evening EDT. It’s uncertain whether the leaders can agree on issues such as immediate denuclearization and sanctions relief. The meeting itself was temporarily canceled by Trump. But if the two leaders come closer to a resolution, Chinese stocks are particularly poised to benefit, according to CNBC analysis using Kensho, a quantitative analytics tool us...

BlackRock is in talks to buy a minority stake in Italian fund house Eurizon

BlackRock is talking to Eurizon, Italy’s second-largest fund house with €314bn under management, about buying a minority stake as the world’s top asset manager strengthens its grip on Europe. Discussions have been taking place for months, according to several people briefed on the negotiations, but they slowed in recent weeks during Italy’s political crisis. Any deal would solidify BlackRock’s standing and further disrupt the continental European market, which is tightly controlled by domestic banks and insurers. More from the Financial Times: Italian assets rally on finance minister’s pledge to keep euroPoundworld files for bankruptcyHSBC chief Flint promises return to ‘growth mode’ The thrust of the talks has been over a distribution arrangement ...

HSBC to invest $15-17 billion as strategy swings from shrink to grow

HSBC will invest $15-17 billion in areas including technology and its core Asian markets of Hong Kong and China as it swings from a strategy of cost-cutting to growth, new Chief Executive John Flint said on Monday. The announcement is Flint’s first public indication to shareholders of the strategy he intends to pursue at HSBC, which has struggled to meet its profit goals in recent years after a shrinking of its global empire also cut income. The bank is targeting a return on tangible equity of 11 percent by 2020, Flint said, and will sustain its dividends at current levels. “After a period of restructuring, it is now time for HSBC to get back into growth mode,” Flint said.

Trump is getting nowhere with Europe and China on widening trade deficits

President Donald Trump repeated earlier this month his frequent complaint that the “the U.S. has been ripped off by other countries for years on trade,” but he omitted to mention that the “ripping off” process continues — on his watch. Here is what’s happening to U.S. trade accounts under Trump’s stewardship: Last year, America’s deficit on goods trade widened to $810 billion, marking an annual increase of 7.6 percent, after a 1.3 percent decline in 2016. That trade deterioration was partly due to the economy’s accelerating growth to 2.3 percent from 1.5 percent in 2016. Still, despite Trump’s promises, there was no narrowing of deficits with any of America’s main trade partners. In fact, particularly large deficit increases were ...

Bitcoin tumbles 10% on news of South Korea crypto exchange hack

Bitcoin tumbled 10 percent on Sunday to its lowest in two months, after a relatively small South Korean exchange said it was hacked. Over the weekend, crypto exchange Coinrail tweeted that it was hacked, and noted that lesser-known cryptocurrencies such as Pundi X were among those affected, according to Google Translate. The Pundi X-bitcoin pair is the most-traded on Coinrail, CoinMarketCap data showed. However, Coinrail’s public statements did not mention bitcoin, according to Google Translate. Nevertheless, Bitcoin hit a low of $6,647.33, its lowest since April 9, according to CoinDesk’s bitcoin price index, and coincided with a broader crypto sell-off. The largest cryptocurrency by market capitalization remains about 50 percent lower for the year so far. Bitcoin three-month ...