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5f8fddcc5a1a25d5fce9ec5e331ba8dd | https://www.cnbc.com/2018/03/24/apples-tim-cook-calls-for-calm-heads-on-china-us-trade.html | Apple's Tim Cook calls for calm heads on China, US trade | Apple's Tim Cook calls for calm heads on China, US trade
Apple CEO Tim Cook.Getty Images
Apple Chief Executive Tim Cook on Saturday called for "calm heads" and more open trade, amid rising fears of a trade war between the United States and China.
Trade tension between China and the United States flared this week when President Donald Trump unveiled plans on Thursday to slap tariffs on potentially up to $60 billion in Chinese goods.
China's Commerce Ministry on Friday urged the United States to "pull back from the brink", saying it was not afraid to engage in a trade war.
"I'm cognizant that in both the U.S. and China, there have been cases where everyone hasn't benefited, where the benefit hasn't been balanced," Cook said.
Speaking at the annual China Development Forum in Beijing, Cook said he hoped "calm heads" would prevail.
The sparring has cast a spotlight on hardware makers such as Apple, which assemble the majority of their products in China for export to other countries.
Electrical goods and tech are the largest U.S. import item from China.
In the past year, Apple and other foreign tech firms have grappled with a string of new regulatory requirements in China, including a controversial law requiring firms to house user data in data centers overseen by Chinese firms.
Last month, Apple officially moved to store keys for its iCloud data in China, provoking intense criticism from rights groups who say the decision makes it easier for Chinese officials to tap and collect private data.
Despite challenges, the company has sought to expand its services in China, its third-largest market, where roughly 1.8 million developers use its platform.
"My belief is that businesses should be engaged with governments in countries where they are doing business, whether they agree or disagree," Cook said.
Cook has come to China several times in the past year, and was among executives who met Chinese President Xi Jinping last October.
"My belief is that one plus one equals three. The pie gets larger, working together," Cook said.
Others attending the three-day forum include the chief executives of IBM, Google and Qualcomm.
Cook, who this year co-chaired the event, also attended last year when he called for China to increase trade and continue opening itself up to the world.
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762b48191e05974e530ddeef0de99812 | https://www.cnbc.com/2018/03/25/one-strange-rock-collaborators-explain-what-life-on-earth-means-for-humans-looking-to-mars.html | 'One Strange Rock' collaborators explain what life on Earth means for humans looking to Mars | 'One Strange Rock' collaborators explain what life on Earth means for humans looking to Mars
World Perspectives | Getty Images
With so much happening on planet Earth in peril, are humans truly prepared to reach Mars?
"One Strange Rock," a National Geographic television series that debuted on March 26th, sets out to show viewers what makes the Earth unique among other planets in the solar system, and the conditions it took to foster life on the planet. As part of the series – produced by Darren Aronofsky and narrated by superstar Will Smith – several astronauts give personal anecdotes and perspectives about the planet based on a place few humans who have actually visited outer space.
"One Strange Rock" illustrates the idea that Earth has several frontiers humans have yet to conquer, and functions as a love letter of sorts to the planet at a time when humans have their sights set on redder pastures. Expectations are heightened over efforts to reach Mars – which, if SpaceX founder Elon Musk has his druthers, could happen as early as next year – with eventual human colonization seen as a real possibility.
The Red Planet is "a hard place to get to," Chris Hadfield, the first Canadian to walk in space and a former commander of the International Space Station, told CNBC at a press conference recently. "Personally, I do not think we'll ever get to Mars with the engines that exist now. We will need something better in order to make that leap of distance."
He added that the voyage itself would take a year, and was fraught with potential risks. "No matter what goes wrong in that year, you can't go home. That's like condemning a lot of people to death, because a lot could go wrong."
With that in mind, CNBC recently asked "One Strange Rock's" contributors to share their thoughts on the idea of humans departing Earth for life on Mars. Several of them believed that our planet still holds its own unexplored mysteries, and lessons for venturing beyond Earth's orbit.
US Director Darren Aronofsky.Charly Triballeau | AFP | Getty Image
Earth is "at risk [so] we definitely have to take a better job of taking care of what we have before we put too many resources into getting to other planets. If we destroy our home, we're no longer earthlings. First and foremost, personally [speaking], we have to take care of our home. Through space exploration, most of what we do is look back at ourselves, and going to Mars will reveal more about what it means to be an earthling and a human."
US Pilot Scott Horowitz (L), US Jeff Hoffman (C), Italian Maurizio Cheli (R) pose on March 09, 1996 after leaving the Shuttle on Kennedy Space Center's runway 33.Tony Ranze | AFP | Getty Images
"The more we learn about Mars the more fascinated we become. Mars has generally been the source of aliens that are going to invade the Earth. Even in the popular imagination Mars is associated with life, but scientifically it's a place where maybe … it's a place that could potentially support human life. Technologically, economically we have a long way to go. Mars is really hard."
U.S. astronaut Peggy Whitson, member of the 50/51 expedition to the International Space Station (ISS). Kirill Kudryavtsev | AFP | Getty Images
"Life needs to spread beyond this world, because there can always be another catastrophic event that will end life here as we know it now. … Exploration has to continue so that we can continue. Philosophically … it's important that we expand" beyond the Earth's atmosphere, she said.
Dr. Mae JemisonOlivia Michael | CNBC
"If we don't get our act together here, we certainly aren't going to figure out how to go to Mars and live, because we have to understand the microbiology. We're not going to be able to terraform Mars without really understanding what's happening here on Earth, which we are destroying really, really rapidly. ... We still have things that we need to explore here."
Astronaut Mike Massimino attends the 2014 Webby Awards on Monday, May 19, 2014, in New York.Andy Kropa | Invision | AP
"We already should have been on Mars! I think that we want to explore and keep going, especially now with these private companies."
A trip to Mars is projected to take place sometime within the next 20 years, but Massimino thinks humans should try someplace closer. "I think [back to] the moon is where we should go."
Jerry LinengerOlivia Michael | CNBC
"I like the John Kennedy speech where he said: 'We choose to go to the moon … not because it's easy, but because it's hard.' … That's my answer to anything. I don't care where we go: Mars, the moon or whatever, but just do something that's hard to push technology and bring out the best in man." Correction: An earlier version misspelled Darren Aronofsky's last name and misstated his title. He is executive producer of "One Strange Rock."
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3b9d317d19bcf36d7efe0ce47c7ec6ba | https://www.cnbc.com/2018/03/26/art-cashin-wall-street-gets-used-to-trumps-art-of-the-deal-approach.html | Art Cashin: Wall Street's rebound shows that investors are getting used to Trump's 'Art of the Deal' | Art Cashin: Wall Street's rebound shows that investors are getting used to Trump's 'Art of the Deal'
VIDEO3:3403:34Art Cashin: Investors will feel more optimistic until we retest 200-day moving averageSquawk on the Street
Wall Street is catching on to President Donald Trump's "dramatic" approach to dealmaking, veteran trader Art Cashin told CNBC on Monday.
"I think the markets [are] beginning to understand the 'Art of the Deal' in the president's mind," said Cashin, the UBS director of floor operations at the New York Stock Exchange.
"You start off first with something very dramatic" as a starting point for negotiations, and then there's room to scale back, Cashin added.
As an example, Cashin referred to Trump's tariffs of 25 percent on imported steel and 10 percent on aluminum, which had pressured the market right after the March 1 announcement.
But shortly after, Trump said he would exempt U.S. trading partners Canada and Mexico. And then last week, the administration said it would grant the European Union, Argentina, Australia, Brazil and South Korea exemptions as well.
The tariffs "sounded like they were going to be big and originally nobody was going to be exempted," Cashin told "Squawk on the Street." "Now everyone is exempted."
Cashin also sees the same stick-and-carrot dynamic developing in regards to China.
Following Trump's announcement last week of up to $60 billion in tariffs against Chinese imports and Beijing's $3 billion retaliation, U.S. Treasury Secretary Steve Mnuchin said over the weekend he's optimistic a trade agreement will ultimately be negotiated with China.
"You got help from Secretary Mnuchin ... about trade wars really being in negotiation," cited Cashin as a reason the stock market opened so strongly on Monday following Thursday's and Friday's sharp decline. China announcing a willingness to hold talks with the U.S. in order to resolve their differences also helped support stocks.
Cashin said the markets will continue to feel "optimistic" until there's a retest of the Feb. 8 closing lows or there's a real breakthrough to the upside.
Disclaimer
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63ff12a33cea830b50817dea6a984cb2 | https://www.cnbc.com/2018/03/26/cnbc-transcript-vasant-narasimhan-ceo-novartis.html | CNBC Transcript: Vasant Narasimhan, CEO, Novartis | CNBC Transcript: Vasant Narasimhan, CEO, Novartis
Following is the transcript of a CNBC interview with Vasant Narasimhan, CEO of Novartis, at the China Development Forum in Beijing. The interview was broadcast on CNBC's Squawk Box on 27 March 2018.
All references must be sourced to a "CNBC Interview'.
Interviewed by CNBC's Martin Soong.
Martin Soong (MS): President fired the first shot. China returned fire, returned salvo. And now there's is the risk this thing could just sort of blow up into a full blown trade war. It seems to be what everybody's talking about and also worried about. Your thoughts?
Vasant Narasimhan: You know when we think about ourselves as a global company, we are obviously very pro-free trade, we want there to be a stable system of free trade that allows a company like us, a Swiss-based company that operates in over 150 countries, to be able to work freely and fairly. You know when we look at the situation we hope that there's a reasonable solution that comes about and that you know this doesn't escalate. I think it would only damage the global economy and obviously impact companies like us – we have manufacturing sites around the world, including in China and in the United States. And we need to be able to run our global supply chains in a stable way. So I think we're hopeful though that we can get to an amicable solution.
MS: OK I mean whether it escalates or not, who knows right, but are you confident that you've got a handle on your supply chain sufficiently that it can be nimble and fast enough to pivot if you need?
Vasant Narasimhan: We're fortunate in that we are a large enough company that we have redundancies and so we can manage through these situations, so it's not a cause of great concern. I think it's just more the symbol it sends to the global economic system. And I think we'd rather be in a world where there's stable policies that allow for free trade.
MS: Of course. A couple of months ago, January, start of year, you were in Davos I know at a table with the president and was then Werner Baumann from Bayer. And there were, I mean there were other people as well, but you guys were big pharma and whole idea was, Gary Cohen at that time was still in the job, is trying to drum up more investment for the U.S. What was that dinner conversation like? And did you actually get face time with the president? What did you tell him?
Vasant Narasimhan: It was a group discussion and so really it wasn't a one on one opportunity, but we did get to take pictures – that was probably about it. But most of the discussion focused on what would it take to create stability and create an environment where companies like ours would increase investment in the United States. I highlighted the importance of continuing to upscale the workforce to be digitally enabled and enabled in a world where artificial intelligence and digital technologies are going to be really important. I think others highlighted other elements including the importance of stable trade agreements, things like Nafta amongst other trade agreements, so those with the kind of things we talked about. I would say it was a pretty free flowing discussion but no commitments were made.
MS: Okay, no conclusions or commitments. You know the thing is with tax reform, we've seen companies like Pfizer doing pretty well out of it, nice windfall right. And I guess the key question is, especially for pharma, we've seen on the back of tax reform fairly significant wave of M&A kickoff and this is the first time we've seen this in about a decade or so. So the key question is, tax reform, you get a windfall. What do you do with the money? Do you invest it at home to create jobs? Do you buy back shares? In Novartis' case, what is likely to be?
Vasant Narasimhan: One important clarification we've been making is for overseas-based companies like Novartis and tax reform had really minimal impact. So we don't see a lower tax because of this tax reform. So from that standpoint it doesn't really change much of how we operate, but what we are continuing to do is follow our capital allocation priorities and as I've said I really want us to be a focused medicines company, powered by data and digital technologies and that means looking for bolt-on acquisitions, of value creating bolt-on acquisitions. That's where our focus has been. We recently completed one in January of Advanced Accelerator applications, an oncology company that was about a four billion dollar bolt-on that we did. And that's the kind of place where we see value bringing in technologies that fit in our core therapeutic areas and then we can unlock the value of those technologies.
MS: So bolting on this is interesting because your immediate predecessor, Joe Jiminez, did a lot of the I guess the pruning right, the hard work and left the company in pretty good shape for yourself to take over, with the exception, we can get into your push to bolt-on and push to AI in a just a bit, but I want to get to the two sort of I guess hangovers that Joe Jiminez sort of left to you and that is what to do Alcon and also what to do with Sandoz. Let's get to Sandoz first because I mean the talk of the market is you could be weeks away from letting it go. Are you?
Vasant Narasimhan: So first I want to give a little broader context, so you know when you look at Novartis we started out after the formation of the companies abroad conglomerate. Over time we've slimmed down under Joe's leadership to three leading businesses - Sandoz, Alcon and of course our leading pharmaceuticals business. You know I see us continue to focus our resources and in pharmaceuticals and medicines broadly. With Alcon, as we've stated, you know we look forward to taking a potential action, moving to a potential decision in the first half of 2019. And that's still the timeline that we will maintain and no change on that.
MS: Even though finally you've got sales growth at Alcon?
Vasant Narasimhan: Well we're happy with the sales growth, we want to continue to see both sales growth and profitability improvement, but we still think it would be the right timeline to look towards the first half of 19 for any potential action on Alcon. Now with respect to Sandoz, I think it has been well characterized the global generics market is under pressure particularly in the traditional generics. We see great strength and growth in Biosimilars, where we have about the leading Biosimilars portfolio in the industry. So we're quite we're quite keen on continuing to maintain our focus on Biosimilars. In the rest of the Sandoz business, and as I've stated publicly, we really want to continue to think about how best to invest in that business to ensure we are differentiated and can grow. We have no immediate plans to really change our approach on Sandoz. We continue to evaluate all options, particularly in the U.S. business that's been under pressure, but we haven't made any decisions.
MS: So with Sandoz the problem is basically no pricing power or slipping pricing power right so your fight back is okay let's go more complex, let's go more higher margins as well. The problem is, a lot of your competitors are doing the same thing - so differentiation.
Vasant Narasimhan: If you think about the generics industry from 2000 to 2012, it was a highly attractive area where having global scale was what we really mattered. Now with the emergence of really significant competition from China and India, cost leadership becomes much more important. So companies like ours have to move into more complex value added medicines as you described. The key will be how to differentiate your value proposition versus the other generics companies and that's what we're focused on.
MS: OK let's circle back now to the acquisitions, you were talking about bolt-ons. I think a lot of people were watching to see whether this first wave of M&A becomes sort of a tidal wave for the first time in about a decade. Your focus for Novartis where do you see, what sorts of businesses are you targeting that would be good fits for what you want to do, which is pipeline right?
Vasant Narasimhan: Well you know we really think we want to focus our M&A efforts on these bolt-on acquisitions that have either new technologies or products that fit into our core therapeutic areas. When you think about Novartis's core therapeutic areas, we operate in about seven therapeutic areas where we have global scale, we have developing capabilities, we have commercial capabilities. And our goal is to find either assets that are near the market or earlier stage pipeline assets that fit in those areas. We really believe the value's in bolt-on acquisitions and you know we're not looking at large scale M&A we think that typically can be very disruptive to companies like ours with strong pipelines. So our focus has really been on those on those bolt-on acquisitions particularly in areas such as oncology, where we did triple-A as well as other therapeutic areas.
MS: And this is kind of a market question, even if you do find suitable targets right, the timing, is there value out there right now the way the pharmas are now?
Vasant Narasimhan: Well you know that is I think the challenge right now with M&A, I mean the valuations are extremely high right now and they continue to be on the high end. There's takeover premiums I believe in many of these stocks already. And that's really where the challenge is in doing bolt on M&A is to find situations where you can really get a reasonable price where our company will benefit, our shareholders will benefit and the selling company would also benefit. That's certainly more challenging today than it's been in the past.
END
Media Contact:
Mike Cheong Communications Manager, CNBC Asia Pacific D: +65 6326 1123 M: +65 9852 8630 Mike.Cheong@nbcuni.com
About CNBC
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For more information, please visit www.cnbc.com
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c2a81b0f93c4742de98785865cf855e7 | https://www.cnbc.com/2018/03/26/fiscal-policy-is-spinning-out-of-control-ex-gao-head-under-clinton-and-bush.html?__source=fincont&par=fincont | Fiscal policy is 'spinning out of control': Ex-GAO head under Clinton and Bush | Fiscal policy is 'spinning out of control': Ex-GAO head under Clinton and Bush
VIDEO3:1103:11Fiscal policy is spinning out of control in DC: Fmr. US comptroller generalClosing Bell
The spending spree coming out of the nation's capital has to stop, former Government Accountability Office head David Walker told CNBC on Monday.
"Fiscal policy is spinning out of control again in Washington, D.C.," said Walker, who was head of the GAO under Presidents Bill Clinton and George W. Bush.
"We are mortgaging the future of kids and grandkids at record rates. That is irresponsible. It is unethical. It is immoral. It must stop," he told "Closing Bell."
On Friday, President Donald Trump signed a $1.3 trillion spending bill into law, despite being "unhappy about it."
Andrew Harrer | Bloomberg | Getty Images
The legislation, which funds the government through the end of September, significantly boosts military spending. It also increases funding for border security, infrastructure and efforts to fight the opioid epidemic.
"We've seen the debt ceiling limit go up $1 trillion in the last year. We're facing trillion-dollar annual deficits starting in '19, and we can see on the horizon that the federal budget may end up spending $1 trillion on interest alone in the not-too-distant future. And what do you get for interest? Nothing," said Walker, who is seeking the Republican nomination for governor of Connecticut.
He's particularly concerned about the 70 percent of the budget that's on "autopilot" — so-called mandatory spending programs like Social Security, Medicaid and Medicare.
"We have made no meaningful progress on diffusing that ticking time bomb," Walker said. "That's what we have to get to if we want to restore fiscal sanity."
It's a different story on the Republican tax plan, which he thinks will create additional economic growth and job opportunities.
That additional growth will produce some revenues, he said.
"But let's understand this ... our fiscal gap is too great to close it with growth alone."
— CNBC's Jacob Pramuk contributed to this report.
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084d329a2c31cb5e32bb61d040da8efe | https://www.cnbc.com/2018/03/26/ftc-confirms-facebook-data-breach-investigation.html | Facebook stock slides after FTC launches probe of data scandal | Facebook stock slides after FTC launches probe of data scandal
VIDEO0:5500:55FTC probing Facebook privacy practicesSquawk on the Street
Shares of Facebook cratered as much as 6 percent Monday after the Federal Trade Commission announced it is investigating the company's data practices in the wake of the Cambridge Analytica leak of 50 million users' information.
"The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices," the agency said in a statement.
The FTC declined to confirm last week that it was investigating Facebook, including whether it violated a consent decree the tech company signed with the agency in 2011.
The decree required that Facebook notify users and receive explicit permission before sharing personal data beyond their specified privacy settings.
A violation of the consent decree could carry a penalty of $40,000 per violation.
"We remain strongly committed to protecting people's information. We appreciate the opportunity to answer questions the FTC may have," Rob Sherman, deputy chief privacy officer for Facebook, said in a statement to CNBC.
Facebook is facing questions over its data handling following reports that research firm Cambridge Analytica improperly gained access to the personal data of more than 50 million Facebook users.
Facebook's stock shed more than 13 percent in the five days of trading following the initial reports.
Monday morning the stock briefly fell into bear market territory, more than 20 percent off its 52-week high, before paring losses. By early afternoon it was down less than 2 percent.
The FTC is firmly and fully committed to using all of its tools to protect the privacy of consumers. Foremost among these tools is enforcement action against companies that fail to honor their privacy promises, including to comply with Privacy Shield, or that engage in unfair acts that cause substantial injury to consumers in violation of the FTC Act. Companies who have settled previous FTC actions must also comply with FTC order provisions imposing privacy and data security requirements. Accordingly, the FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices.
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82f160f4a3140a87699ee838569fc93e | https://www.cnbc.com/2018/03/26/student-loan-forgiveness-gets-one-shot-350m-boost.html | Student loan forgiveness gets one-shot, $350M boost | Student loan forgiveness gets one-shot, $350M boost
VIDEO1:0201:02First-come, first-served: Trump will let some student loan borrowers erase their debtNews Videos
As part of the new $1.3 trillion federal spending bill, Congress authorized a $350 million "fix" to fund a popular student loan forgiveness plan that many financial experts say is failing.
If you thought or were told you didn't qualify for the Public Service Loan Forgiveness program because you were not enrolled in a qualifying repayment plan — typically an income-driven plan — the Department of Education might still let you erase your loans.
Congress has allocated the DOE $350 million to offer forgiveness to student loan borrowers who meet all requirements for PSLF except that they were enrolled in graduated or extended repayment plans, which are ineligible for relief.
Many student loan borrowers thought they were paying their way toward student loan forgiveness, only to learn they are not eligible for one technical reason or another.Emily Rose Bennett | The New York Times
To qualify, you'll still need to have a loan from the Direct program, have had made all of your payments in full and on time, and have worked 10 years in a public service job with a qualifying employer.
Additionally, the forgiveness plan will be given out on a "first-come, first-served" basis, until the money runs out.
Considering that there are potentially many newly-eligible debtors, this "first-come, first-served" fund may not last long at all. That means you'll want to get your application in as soon as possible, said Mark Kantrowitz, a student loan expert.
"You don't want to be playing a game of musical chairs and be the one left out," he said.
You can start applying in around 60 days.
VIDEO1:1701:17How to deal with college debtCollege Game Plan
The PSLF, established by President George W. Bush in 2007, allows student loan borrowers who pursue government or non-profit public service jobs to wipe out their remaining debt after 10 years of on-time payments.
In 2013, the Consumer Financial Protection Bureau estimated that one in four American workers could be eligible for forgiveness. But last year, the agency reported that a range of student loan industry practices "delay, defer or deny access" to that consumer protection.
Many students believe they're paying their way toward forgiveness, only to find they hold a loan or are enrolled in a repayment plan that disqualifies them from the program.
Since the DOE first began accepting PSLF requests in October 2017, some 13,000 people have applied but just 1,000 are expected to be eligible, a DOE spokesman told CNBC.
Nancy Conneely, director of policy at AccessLex Institute, which provides financial education to students and schools, applauded the funding.
"This is a great first step in ensuring the program is doing what it was intended to do —incentivize people to work in public service," she said.
But Jonathan Fansmith, director of government relations at the American Council on Education, said the $350 million is not enough to cover all the borrowers who would be eligible if they were simply enrolled in a different repayment plan.
Last month, Senate Democrats tried to secure $4 billion to mend the program.
The "first-come, first-served" stipulation, he added, was surprising.
"You usually don't see that in federal policy," he said. "Loans work like an entitlement."
More from Personal Finance:Strong economy could be your ticket to a new jobIf you're tired of Medicare Advantage, now is the time to ditchRetire in paradise: 5 countries where you can live the dream
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e02785a04b59e5fb3dc32b6e923c1fd5 | https://www.cnbc.com/2018/03/26/usg-soars-nearly-20-percent-as-it-spurns-a-buyout-offer-from-german-firm.html | Warren Buffett is offering a German firm an interesting trade that could lead to a profitable takeover of one of his stocks | Warren Buffett is offering a German firm an interesting trade that could lead to a profitable takeover of one of his stocks
Warren BuffettDavid A. Grogan | CNBC
Building materials company USG announced on Monday it rejected a buyout offer from Germany-based Gebr. Knauf KG, despite the fact that the bid involves a transaction supported by one of its largest shareholders: Warren Buffett.
"Our Board is always looking for ways to deliver value to all of our shareholders, but Knauf's opportunistically timed proposal is wholly inadequate as it does not reflect USG's intrinsic value, including the significant opportunities ahead of us," USG's non-executive chairman Steven Leer said in the release. "We are confident that the strategy we presented on March 8, 2018 at our Investor Day will deliver significantly more value to our shareholders than Knauf's proposal." The company's shares rose 19.5 percent Monday to $40.03. USG is a leading provider of wall, ceiling, flooring and roofing products. Gebr. Knauf KG revealed in a securities filing Friday it offered to buy USG for $42 per share on Mar. 15.
The company also said in the filing a senior executive of Berkshire Hathaway offered Gebr. Knauf KG a $2 per share option to buy its stake in USG for a "price of not less than $42 per share." The option will only be exercisable if Gebr. Knauf KG acquired the whole company.
Gebr. Knauf KG said it is currently evaluating Berkshire's option proposal.
Berkshire Hathaway is USG's largest shareholder with a 30.8 percent stake in the company, according to a filing. A Berkshire filing Monday stated the Buffett and another Berkshire executive talked to the German company on March 23 about the option proposal.
Berkshire Hathaway did not immediately respond to a request for comment on the Gebr. Knauf KG filing.
VIDEO2:0802:08These are the companies that Warren Buffett should buyDigital Original
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53d46f5bde46804ca15f9bd508c495ef | https://www.cnbc.com/2018/03/26/walmart-unit-jet-com-names-tesco-veteran-simon-belsham-as-president.html | Walmart unit Jet.com names Tesco veteran Simon Belsham as president | Walmart unit Jet.com names Tesco veteran Simon Belsham as president
Simon BelshamLuke MacGregor | Bloomberg | Getty Images
Walmart's Jet.com has named Tesco veteran Simon Belsham as president of the e-commerce company, effective immediately, the company said Monday.Belsham will be responsible for expanding the company's online grocery business, Walmart e-commerce CEO Marc Lore said in a memo to employees.
Belsham spent seven years at Tesco, one of Britain's top grocery retailers, and worked at U.K.-based Ocado, helping the online supermarket company expand its nonfood business.
He succeeds Liza Landsman, who announced plans recently to leave Jet.com and join a venture capital firm.
"There are so many ways technology can change retail and be a force for good in our lives," Belsham said in a statement about his new position. "In my view, there is no business better positioned to take advantage of the opportunity ahead than the combination of Walmart and Jet."
Belsham joins Jet.com at a time when Walmart is ramping up its online grocery business in the face of competition from Amazon-owned Whole Foods, Kroger and Target.
In its most recent quarter, Walmart's e-commerce growth cooled significantly, disappointing investors and analysts about Jet.com's performance. Walmart acquired the company in 2016.
Lore has said Jet.com aims to target consumers in urban markets who might not frequent Walmart stores. Late last year it launched its own private-label brand, Uniquely J, in a bid to win more of those shoppers' dollars and boost profit margins.
"With Jet Grocery being an integral part of the strategy, Simon brings incredible experience in scaling grocery delivery and his unique background in converging technology and retail to create amazing experiences for customers," Lore said in the memo.
Current Jet.com execs Andrew Gasper, David Echegoyen and Jack Hanlon will report to Belsham, Lore said.
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ac2c854a75425587461307c506c48330 | https://www.cnbc.com/2018/03/26/yen-to-protect-against-a-trade-war-is-wrong.html?__source=twitter%7Cmain | Buying the yen to protect against a trade war is ‘pretty peculiar,’ wealth manager says | Buying the yen to protect against a trade war is ‘pretty peculiar,’ wealth manager says
VIDEO3:5803:58Why buying the yen as protection from a trade war is 'pretty peculiar'Squawk Box Europe
Choosing to buy the Japanese yen as protection against a potential trade war is "pretty peculiar," one wealth manager told CNBC Monday.
The Japanese currency has been mostly on the rise against the U.S. dollar as investors look for a safe haven amid fears of a global trade war. On Monday morning, the yen was close to a 17-month high against the dollar following the U.S. decision last week to impose new tariffs on China worth $60 billion.
"Buying the yen because of a trade war in which Japan was going to be hit pretty badly, and Japan hasn't been exempted from the steel tariffs by the way, that seems to me pretty peculiar," Giles Keating, managing director at wealth manager Werthstein Institute, told CNBC.
Prior to imposing new tariffs on China for allegedly stealing intellectual property rights, the U.S. announced tariffs on steel and aluminum products. The EU managed to get a temporary exemption from the latter tariffs last week, but Japan didn't.
Toru Hanai | Reuters
With fewer imports to the U.S., the Japanese economy could be hit and the currency could depreciate. More importantly, Japan could suffer from a deterioration in the trade ties between the U.S. and China, given its proximity to the latter.
According to Tobias Harris, the vice president of advisory firm Teneo, the economic impact of the metal tariffs should be small on Japan, but they could signal something much more important.
"The direct economic impact on Japanese producers may be limited — only 2 percent of Japan's steel exports go to the U.S. — but Tokyo's failure to convince Washington to spare it from the new measures could be a sign of a more contentious turn in the bilateral relationship," he said.
"After a year of broad discussions in the U.S.-Japan Bilateral Economic Dialogue … The U.S. administration appears to be increasingly determined to press Japan for concessions to open its market and reduce its bilateral trade surplus with the U.S.," Harris added in a note Friday.
Data from the Japanese government showed last month that the country's trade surplus with the United States narrowed in January, dropped 12.3 percent from a year ago to 349.57 billion Japanese yen ($3.32 billion). Japan has announced that it would look to be exempted from the metal tariffs, though they came into effect on Friday.
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5196ab2dd7f83fa802be868d3cb3ee07 | https://www.cnbc.com/2018/03/26/youre-probably-using-the-wrong-credit-card-heres-how-to-fix-that.html?__source=sharebar%7Ctwitter&par=sharebar | You're probably using the wrong credit card. Here's how to fix that | You're probably using the wrong credit card. Here's how to fix that
VIDEO1:0101:01You could be hurting your budget by using the wrong credit cardYour Money, Your Future
If you haven't recently checked to see whether the credit card you're using is the right one for you, you could be leaving money on the table.
A new survey from CreditCards.com found that 12 percent of credit card users, or 20 million individuals, have not switched cards in 10 or more years, while 28 percent, or 49 million, have always used the same card.
"That's an awful lot of people who are missing out on an opportunity to get some rewards and missing an opportunity to make a real impact on their budget," said Matt Schulz, senior industry analyst at CreditCards.com.
Cutting down on any credit card debt is especially important this year because the Federal Reserve is expected to steadily raise rates, Schulz said. That means you will be paying more interest on any outstanding balances.
Regardless of how long you have owned a credit card — whether more than 10 years or six months — ask yourself how you use the card and what you want to get out of it.
Check your existing credit card accounts to track how you spend, including restaurant, gas and grocery purchases. Then identify what you want to get from a card, whether it be cash back or points toward travel.
"All of these basic questions can help guide you to the right card if you take the time to ask them," Schulz said.
Once you have identified how you will use the card, look for a card that matches your goals.
If you're looking to transfer a balance or just keep a balance, look at cards with the lowest interest rates. Rates currently range from the low teens to the mid-20s, Schulz said, though it is possible to get an even lower annual percentage rate if you have excellent credit.
If you plan to take advantage of rewards, look for cards that offer the biggest bonus. Watch out for cards that require you spend a certain amount to get that reward, such as $3,000 or $4,000 within a few months.
"The last thing people should do is overspend to get rewards," Schulz said. "That's just asking for trouble."
Also be sure to keep in mind how you will use the card. If you frequently travel overseas, for example, look for a card that doesn't have foreign transaction fees.
VIDEO2:4902:49The six things never to put on a credit cardDigital Original
While you may be tempted to close the account on your old card completely, keeping it open will help boost your financial record.
"Generally speaking, there's no reason to cancel an old credit card," Schulz said. "The longer you have a credit card with a good history, the better it is for your credit."
The exception to that rule is if your old card comes with an annual fee and you are certain you're not going to use it anymore, Schulz said.
CreditCards.com's online survey was conducted earlier this month and included 2,228 U.S. adults.
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0c6472a4a1ec91ac678efffdf0e66d5f | https://www.cnbc.com/2018/03/27/apple-education-event-in-chicago-new-macbook-ipad-expected.html | Apple expected to unveil lower-priced devices to compete with Google in education | Apple expected to unveil lower-priced devices to compete with Google in education
VIDEO1:4301:43Apple's push into the classroomSquawk on the Street
Apple is expected to reveal a lower-price laptop and updated iPad at an education-themed event in Chicago on Tuesday, which could shore up Apple's defenses against Google's increasing presence in U.S. schools.
Apple is notoriously secretive about future product launches, and Tuesday's event is typically slim on details — no new products have been confirmed by the company yet. But bloggers at 9to5Mac have discovered code for a new developer framework called ClassKit and speculate that supply chain rumors of a cheaper iPad and MacBook make sense for schools buying in bulk.
In particular, 9to5Mac reports, Apple could unveil a 13-inch Retina MacBook and a cheaper 9.7-inch iPad. Less well-known are Apple's plans for the Apple Pencil, as well as usual spring updates to the iPhone SE and Apple Watch franchises. Another shoe left to drop for Apple is the announcement of a location for its newest campus.
Still, ClassKit, plus cheaper hardware, would show a big push from Apple in the education market, which has historically been a major investment area for the company. Bringing computers to college campuses was a project for Apple co-founder Steve Jobs inside and outside of his work at Apple, and digital textbooks was one of the original use cases that inspired the creation of the iPad, according to biographer Walter Isaacson.
While Apple products still get prominent placement in university bookstores, Google's low-cost Chromebooks have surged to over half of all computing devices shipped to schools. Apple says Tuesday's event is the company's way of listening to teachers.
The iPhone maker has also doubled down on other education-related initiatives. Apple's "Everybody Can Code" program, focused on mobile apps, recently expanded to 70 more colleges, and iPad devices host Swift Playgrounds, a code education platform. Apple also said in January it would fund 2014 Nobel Peace Prize laureate Malala Yousafzai's women's education advocacy.
Tuesday event is also an opportunity to raise the curtain for WWDC, Apple's June software developers conference, where the company may announce updates to Siri and augmented reality tools.
SoundHound vice president Katie McMahon — formerly of Shazam, which was later acquired by Apple — said education has the potential to be one of the most important markets for smart assistants.
Augmented reality is another emerging technology that has potential in the educational market, according to Apple CEO Tim Cook. Cortney Harding, co-founder of the VR/AR agency Friends With Holograms, said that vocational training is already where many of the most promising apps are being made.
And that's yet another area where Apple needs to keep up with the competition. Google is already rolling out AR and VR content to teachers through its Expeditions program.
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3f8ba2442f4aae20959c58bd601c507e | https://www.cnbc.com/2018/03/27/jp-morgan-investors-are-overreacting-so-buy-this-market-dip-for-big-rally-ahead.html | JP Morgan: Investors are 'overreacting' so buy this market dip for a big rally ahead | JP Morgan: Investors are 'overreacting' so buy this market dip for a big rally ahead
VIDEO0:4900:49JP Morgan: Investors are 'overreacting' so buy this market dip for big rally aheadNews Videos
The pullback in stocks is a great buying opportunity, according to one top Wall Street firm.
J.P. Morgan predicts the S&P 500 will rise by a double-digit percentage through year-end 2018, citing valuation and improving fundamentals.
The S&P 500 has declined by 7.5 percent since its high for the year on Jan. 26.
"Most of the selling seen over this period has been largely technical (trend-following strategies and option hedging in illiquid market environment), and as such represents a buying opportunity for fundamental investors," U.S. equity strategist Dubravko Lakos-Bujas wrote in a note to clients Tuesday. "The market appears to be overreacting to sequential negative narratives (e.g., inflation scare, rising yields, hawkish Fed, rising deficits), we believe strong macro and fundamentals will continue to prevail."
The strategist reiterated his 3,000 year-end price target for the S&P 500, representing 13 percent upside to Monday's close.
Lakos-Bujas said the S&P 500 is trading at a 16 times forward price-to-earnings multiple, which is lower than its 30-year historical median valuation. He believes the market's fundamentals are "strong" and predicts earnings per share will grow by more than 30 percent over the next two years due to lower tax rates and robust sales growth.
"In our view, there is still room for estimates to move higher given indirect benefits of tax reform are difficult to model (i.e., the impact of dynamic scoring, rising disposable income, higher business investment)," he wrote.
Disclaimer
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36b445b5d28208887e53ce6671dd32a1 | https://www.cnbc.com/2018/03/27/switzerland-urged-to-do-more-to-fight-penalize-bribery.html | Switzerland urged to do more to fight, penalize bribery | Switzerland urged to do more to fight, penalize bribery
A tramway car captured with blurred motion rushes through the Paradeplatz (Parade square) in the heart of Switzerland banking industry in Zurich at night.@ Didier Marti | Moment | Getty Images
A group of mostly rich, industrialized countries says Switzerland should do more to prosecute companies and apply tougher penalties for bribery.
The Organization for Economic Cooperation and Development also praised the Swiss Attorney General's office for expanding the number of cases it's investigating, pointing to a nearly six-fold increase in money laundering and bribery probes from 2011 to 2016.
The Paris-based group, which counts Switzerland among its 35 member states, on Tuesday issued findings from a year-long review of the Alpine country that has long been associated with shady financial transactions and as a haven for clandestine deal-making.
The OECD, among other things, urged authorities in Switzerland to improve protections for whistleblowers, reform its rules about legal assistance with other countries and ensure bribery sanctions are "effective, proportionate and dissuasive."
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97802e75f509b087233dc49b35bec9ca | https://www.cnbc.com/2018/03/27/watch-white-house-takes-questions-as-market-rallies.html | Watch: White House takes questions as trade issues remain in focus | Watch: White House takes questions as trade issues remain in focus
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Press secretary Sarah Huckabee Sanders is scheduled to take reporters' questions at the White House on Tuesday.
Trade issues remain in focus, particularly as the White House keys in on China's practices.
The Stormy Daniels controversy is also still in the headlines, after the adult-film actress sued President Donald Trump's personal lawyer, Michael Cohen, for defamation.
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b1fba9dfbc5584b5a4990745b6532c66 | https://www.cnbc.com/2018/03/28/teslas-plunge-could-be-self-fulfilling-prophecy-for-further-declines-morgan-stanley-warns.html | Tesla's plunge could be 'self-fulfilling' prophecy for further declines, Morgan Stanley warns | Tesla's plunge could be 'self-fulfilling' prophecy for further declines, Morgan Stanley warns
VIDEO2:4102:41Moody's rating cut on Tesla 'not a concern': ResearcherStreet Signs Asia
Tesla must quickly improve its Model 3 production rate if it wants to raise critically needed funds from investors at a decent price, according to Morgan Stanley.
The firm reiterated its equal weight rating on Tesla shares. The note came a day after the stock declined 8 percent on a negative analyst report and the National Transportation Safety Board's announcement that it sent investigators to look into the fatal crash of a Tesla car last week. Moody's also downgraded Tesla's credit ratings after the close Tuesday
"A sharp drop in Tesla's share price in part reflects questions on Model 3 ramp … an event that directly impacts both the company's near-term cash needs and ability to potentially access the market for capital," analyst Adam Jonas wrote in a note to clients Wednesday. "A lower share price begets a lower share price… For a company widely expected to continue to fund its strategy through external capital raises, a fall in the share price can take on a self-fulfilling nature that further exacerbates the volatility of the share price."
The company's shares declined 7.8 percent Wednesday. Tesla stock is now down by more than 30 percent from its high in September 2017.
Jonas reiterated his $379 price target for Tesla shares, representing 36 percent upside to Tuesday's close.
He said the company needs to accelerate its rate of Model 3 production if it wants to raise funds at an attractive price for the company.
"The precise timing of when Tesla can achieve a 2,500/week and then a 5,000/week production run-rate for its mass market sedan can make the difference between whether Tesla is potentially raising capital from a position of weakness at a price near our $175 bear case or whether it can access capital from a position of strength with a stock price near our $561 bull case," the analyst wrote.
Nevertheless, Jonas believes Tesla shares are attractive at the current level and recommends investors buy on any further declines.
"We think that we are looking at one of the buying opportunities that many investors have been waiting for," he wrote. "We'd use further weakness from here as an opportunity to build an Equal-weight position in the stock … We see Tesla as modestly undervalued with very high risk."
Tesla did not immediately respond to a request for comment.
VIDEO2:0502:05NTSB investigating fatal Tesla crash in CaliforniaPower Lunch
Disclaimer
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09fb9e6bd429c2cc3ca54827fbad18f7 | https://www.cnbc.com/2018/03/29/facebook-has-rolled-out-privacy-changes--but-its-doing-it-for-gdpr.html?__source=fincont&par=fincont | Facebook rolled out privacy changes — but it’s being forced to do it anyway by regulators | Facebook rolled out privacy changes — but it’s being forced to do it anyway by regulators
Jason Alden | Bloomberg via Getty Images
Facebook has announced a number of privacy changes to its platform in recent days following the Cambridge Analytica data scandal, but the social network would have likely had to make the fixes anyway because of new upcoming legislation.
On March 21, Chief Executive Mark Zuckerberg spoke out about the scandal in which 50 million Facebook user profiles were harvested with the data being sent to political consultancy Cambridge Analytica. He announced some changes including a tool at the top of the News Feed to show users what apps have access to the data, restricting developers' access to data, and other initiatives.
On Wednesday, the social media giant unveiled a raft of measures aimed at making it easier for users to see and access the data held by the company. Facebook said that it had been working on these measures for a while.
While they are trying to regain trust with consumers by pushing out the new measures, it's likely they would have come in whether the data scandal had happened or not.
"A lot of it, a lot of stuff they would need to have done to be compliant with the new European data protection laws, known as GDPR. So I'm not convinced how much of that was actually really new stuff," Damian Collins, a U.K. lawmaker who has summoned Zuckerberg to appear in front of the British parliament, told CNBC Wednesday.
VIDEO3:4903:49UK lawmaker: Want to give data watchdog more powersStreet Signs Europe
GDPR is short for the General Data Protection Regulation, a piece of legislation that will come into force across the European Union on May 25.
Part of GDPR requires companies to allow users to download the data held on them and let them transfer it to another service if they want. Another part of the legislation is the right to be forgotten and the right to request data be deleted. That is something Facebook said it is making easier.
So as much as Facebook might talk about being more responsible and being open to regulation, some of those laws are on the way and it's forcing them to implement these new features. And the implications will go beyond Europe to users in other parts of the world.
"A much tighter data environment from Europe is set to change the way Facebook handles what they collect and how they sell it; and given that Facebook's 2-plus billion users are tightly interconnected, a change in Europe will affect how they handle business for those users connected to those in Europe as well," Ian Bremmer, founder of political analysis firm Eurasia Group, said in a note earlier this week.
"So it's not quite as challenging for Facebook to say they're taking the popular outcry seriously and are prepared to address it — that legal 'fix' was already in the books."
A Facebook spokesperson was not immediately available for comment.
In a recent note to clients, Barclays said that Facebook has 93 million "lighter-weight" users in Europe and could see a small percentage of them go off the service completely.
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c8e9b741fdbd2c59c1b9706a2078eff0 | https://www.cnbc.com/2018/03/29/its-only-a-year-to-go-until-brexit--but-top-uk-retailers-are-frustrated-they-cant-prepare-for-it.html | It’s only a year to go until Brexit — but top UK retailers are frustrated they can’t prepare for it | It’s only a year to go until Brexit — but top UK retailers are frustrated they can’t prepare for it
In 365 days the U.K. will no longer be a member of the European Union.
But U.K. businesses are still unware of how much they will have to change to continue trading with the rest of Europe — making it harder to plan for the future.
Paul Clarke, chief technology officer at the online food retailer Ocado, told CNBC that he is concerned about future funding. The £3.59 billion ($ 5.09 billion) company has benefited from European money in the form of business funding to develop its operations.
"How will the UK government replace that?," he wondered during a phone call with CNBC.
The U.K. has agreed in principle with the European Union (EU) on a transition period of 21 months — meaning that between March 29, 2019 and December 31, 2020, U.K. businesses will be able to continue trading on current terms, while making the necessary preparations for the total break-up moment.
But so far, it is impossible to prepare for the break-up moment given that negotiators haven't decided on how the future relationship is going to be. The second largest U.K. grocer, Sainsbury's, warned Tuesday it will need at least a year's notice to prepare trading arrangements with other EU countries after Brexit.
A 'sale' sign seen from a Oxford Street's clothes store in London.Rahman Hassani | SOPA Images | LightRocket | Getty Images
Retailers are growing frustrated towards the lack of clarity regarding their future. So far, U.K. Prime Minister Theresa May has said that the U.K. will leave the EU's single market – which allows the free movement of goods, services, money, and people – as well as the EU's customs union — an area subject to the same custom duties.
But the EU is not willing to fabricate a new relationship with the U.K. and offered instead a trade agreement, similar to the one that the EU recently closed with Canada. This solution would likely represent higher costs for companies both in Europe and the U.K. trading with one another.
Sterling has fallen about 5 percent against the U.S. dollar since the day the U.K. voted to leave the EU. The depreciation in the currency has increased pressures on retailers to ramp up prices as the costs of their raw materials have risen.
Daniel Rubin, founder and executive chairman of Dune, told CNBC over the phone that shoe retailers are not able to compensate for the added costs by raising shoe prices.
"It's a mistake to push up prices because people don't have more money," he said.
Consumer prices have risen since the U.K. decided to leave the EU in June of 2016. The latest CPI numbers showed prices jumping 2.7 percent in February after a 3 percent increase in January. At the same time, wage increases have not managed to surpass inflation — squeezing consumers' income.
With companies facing higher costs, they are prioritizing investments on their online presence rather than on their physical stores.
Rubin told CNBC that his company's strategy is investing in e-commerce and looking at expanding into other markets. "The most exciting growing area is international," he said, mentioning the Middle East, India and Southeast Asia.
Looking down on the New Oxford Circus crossing at sunset.Loop Images | UIG | Getty Images
The shoe retailer has 38 stores across the U.K. and, though it is investing in improving its online presence, it is not planning to close any of them. However, Rubin noted that as leases come to an end, it's unlikely that the firm will renew them.
Commercial property and real estate services adviser CBRE said that "the weak pound has attracted international real estate investors and tourists to the U.K. and boosted domestic exports, increasing demand for the office, prime retail, industrial and hotel sectors." But with higher demand for office and prime retail spaces, rent prices could increase.
Schuh sells over 80 brands, including Nike, Adidas and Converse. Without the current tariff-free benefit that U.K. firms have with other European countries, companies like Schuh that import goods could see their business impacted.
"My fear is that we get tariffs or cues in the border," Colin Temple, managing director of Schuh, told CNBC over the phone earlier this month.
Higher costs to move goods across the border will mean lower margins for retailers, unless they raise prices for consumers.
"We might buy more stock," Temple told CNBC about preparations for possible higher import costs post-2020.
"Once we know what's happening, we can react," he said.
Follow CNBC International on Twitter and Facebook.
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82acfdf28044ab1e59f708a06377bf1d | https://www.cnbc.com/2018/03/29/tesla-stock-on-pace-for-worst-month-after-federal-probe-moodys-downgrade.html | Tesla is on track for its worst month ever — down 24.86 percent so far | Tesla is on track for its worst month ever — down 24.86 percent so far
The inside of a Tesla vehicle is viewed as it sits parked in a Tesla showroom and service center in Red Hook, Brooklyn on July 5, 2016.Spencer Platt | Getty Images
Tesla shares are on pace for their worst monthly performance as the electric car company faces a spate of recent issues.
Tesla stock is down 24.86 percent in March, as of Wednesday, pacing for its worst month since the company first went public in 2010.
Other recent stock performance figures look pretty rough for Elon Musk's car company. Shares have fallen 17.21 percent in the quarter, putting it on track to record its worst quarter since the fourth quarter of 2013. On the week, Telsa is down 14.51 percent, with shares on track for their worst week since Feb. 5, 2016.
Recent declines have come on the back of a federal investigation into a fatal car crash involving a Tesla vehicle in California earlier in the month. In response, Tesla has said it was assisting with investigations, although it also defended its Autopilot technology.
Moody's recent downgrade of its corporate family rating on Tesla has also weighed on the stock.
The agency downgraded the company's credit ratings Tuesday and changed its outlook to negative from stable, citing "significant shortfall" in the Model 3 production rate and a tight financial situation.
Those concerns were echoed by Morgan Stanley, which highlighted in a recent note that the company had to accelerate its Model 3 production if it wanted to raise funds at an attractive price.
Telsa shares closed down 7.67 percent on Wednesday, some 30 percent off a record high touched in September last year.
Clarification: The report has been modified to better explain the nature of the federal government investigation of the crash in California.
— CNBC's Gina Francolla, Tae Kim and Evelyn Cheng contributed to this report.
VIDEO2:4502:45Moody's downgrades Tesla's credit rating due to Model 3 production delaysPower Lunch
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7f8253ad155aabe53c02ab2b3d9beaad | https://www.cnbc.com/2018/03/30/auto-companies-feature-virtual-reality-and-other-tech-heavy-exhibits-at-new-york-auto-show.html | Auto companies feature virtual reality and other tech-heavy exhibits at New York Auto Show | Auto companies feature virtual reality and other tech-heavy exhibits at New York Auto Show
Auto shows are really supposed to be about cars, but several automakers at the New York International Auto Show are turning to tech to entertain visitors and advertise their products. Virtual reality headsets, remote control cars, and robots were all on display during the show's press preview days at the Jacob Javits Center.
Here is a look at a few of the big ones:
Adam Jeffery | CNBC
Toyota's Fine Comfort Ride concept car is meant to model what an autonomous vehicle powered by hydrogen fuel cells would look like. The vehicle has four seats, and the front two can swivel to face the rear seats. There are also displays on the windows for reading or watching video.
Adam Jeffery | CNBC
Toyota also had virtual reality headsets which simulated the experience of riding in the vehicle.
Adam Jeffery | CNBC
Chevrolet had a table set up where users could pilot a remote controlled car that competed with one that had driver assistance features such as lane keep assist and automatic braking. The idea is to test whether a human driver can pilot a vehicle more deftly than one with driver assistance tech.
As the name suggests, the Human Support Robot is meant to assist humans with everyday tasks, such as fetching or picking up objects. It has a robotic arm that can grip and pickup even thin delicate objects like sheets of paper.
Adam Jeffery | CNBC
The robot is capable of recognizing objects and environments and can either operate autonomously or be controlled via remote.
Adam Jeffery | CNBC
Honda Lens is an augmented reality exhibit that displays graphics and animation which show off various features and characteristics of Honda vehicles, giving facts about the engine or pointing out tech on the dashboard inside the car.
Honda
The photo above is a simulation of what a user would see with the device.
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72669adbe3011fdbb004ce86ad88d011 | https://www.cnbc.com/2018/03/31/mit-developed-imaging-technology-that-can-see-through-fog.html | MIT researchers are tackling a major challenge for self-driving cars — fog | MIT researchers are tackling a major challenge for self-driving cars — fog
VIDEO1:0501:05Autonomous cars might soon have X-ray-like vision in fogDigital Original
Researchers at the MIT Media Lab have developed a new imaging system that can gauge the distance of objects obscured by fog so thick that humans can't see through it.
The goal is to integrate the technology into self-driving cars so that even in bad weather, the vehicles can avoid obstacles.
The imaging-sensing system uses a time-of-flight camera, which fires short laser bursts toward an object. It then counts how long it takes for the light to bounce back. Fog typically scatters the laser light, making it difficult for autonomous vehicles. But the researchers developed an algorithm that finds patterns in the scattered light to reveal distance.
At MIT Media Lab's Camera Culture Group, researchers tested the system in fog much denser than what cars would face in the real world. The system performed better than human vision, whereas most imaging systems perform far worse. A navigation system that was even as good as how a human driver handles the fog would be a huge breakthrough for autonomous cars.
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44f156be023155abc1a74f33e0505bbb | https://www.cnbc.com/2018/04/01/china-announces-new-tariffs-on-us-meat-and-fruit-amid-trade-war-fears.html | China announces it's imposing new tariffs on 128 US products | China announces it's imposing new tariffs on 128 US products
VIDEO2:1702:17China announces new tariffs on 128 US productsSquawk Box
China is implementing new tariffs on meat, fruit and other products from the U.S. as retaliation for American duties, heightening fears of a potential trade war between the world's two largest economies.
Beijing's latest move, announced by its finance ministry in a statement dated April 1, is direct retaliation against taxes approved by President Donald Trump on imported steel and aluminum. Chinese officials had been warning over the last few weeks that their country would take action against the U.S.
The tariffs begin on Monday, the finance ministry statement said.
China's Customs Tariff Commission is increasing the tariff rate on pork products and aluminum scrap by 25 percent. It's also imposing a new 15 percent tariff on 120 other imported U.S. commodities, from almonds to apples and berries.
All told, the extra tariffs will hit 128 kinds of U.S. products, multiple outlets reported. The list of new duties matches the proposed list released by the government on March 23, according to Reuters.
At that time, China said the affected U.S. goods had an import value of $3 billion in 2017 and included wine, fresh fruit, dried fruit and nuts, steel pipes, modified ethanol and ginseng.
VIDEO2:2902:29The market is still very concerned about a trade war: StrategistSquawk Box Asia
The decision to target $3 billion in U.S. imports is significant, but it's widely seen as a drop in the ocean given the size of the bilateral trading relationship. U.S. goods exported to China in 2016 totaled $115.6 billion, according to official data.
China's retaliation is "a statement of intent ... but it's not an escalation in our opinion," Steve Brice, chief investment strategist at Standard Chartered Private Bank, told CNBC on Monday.
The White House didn't respond to a message from The Associated Press on Sunday seeking comment.
While China's response was tied to Trump's steel and aluminum tariffs, it could end up hurting American ranchers and farmers — many of whom are from regions that voted for Trump in 2016. U.S. farmers shipped nearly $20 billion of goods to China in 2017. The American pork industry sent $1.1 billion in products, making China the No. 3 market for U.S. pork.
Of note, China's trade retaliation is not against Trump's announcement in March that he is planning new tariffs on up to $60 billion in Chinese imports.
The White House's planned tariffs are partly aimed at punishing Beijing for allegedly stealing American technology and pressuring U.S. companies to hand it over. Observers have suggested that Beijing may be saving stronger retaliatory measures for a response to that White House plan.
For Chinese tariffs to have a significant effect, "the U.S. should not be the main producer of that specific product, so China can easily find substitutes when trying to import that product," economists at Natixis said in a note.
VIDEO2:5702:57This company in Indiana is feeling the heat from Trump's new tariffsDigital Original
Beijing could also ramp up its response by adding more goods to the 128-strong list.
"If China can tolerate a large price shock, stemming from the lack of other sourcing countries, or if the domestic market can to some extent be a buffer, it may also extend its measures to a wider set of sectors, such as sub-products in paper, photographic films and cereal," the Natixis note said.
But "more relevant products in terms of value of U.S. exports can hardly be included if China wants to achieve its Manufacturing 2025 targets," it continued, referring to a 30-year plan to boost China's industrial base.
Regardless, many fear escalating trade tensions between Beijing and Washington could damage the global economy.
For one, Nobel Prize-winning economist Robert Shiller said, following China's first threat of tariffs on 128 products, that uncertainty about tit-for-tat trade measures could result in an "economic crisis."
"It's just chaos: It will slow down development in the future if people think that this kind of thing is likely," he told CNBC.
Beijing has urged Washington to resolve the matter through dialogue and negotiation.
—The Associated Press contributed to this report.
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a27bfe6871fee5df60f913403df70a7b | https://www.cnbc.com/2018/04/01/walmart-may-have-designs-on-humana-heres-what-could-happen-with-a-deal.html | Why Walmart may have designs on Humana, and what it thinks it could get from a deal | Why Walmart may have designs on Humana, and what it thinks it could get from a deal
VIDEO4:0304:03Walmart eyes Humana in potential mergerSquawk Box
Walmart has been making forays into consumer health care for more than a decade. Now, the nation's largest retailer may be looking to play a bigger role in the sector by acquiring Medicare insurance giant Humana — just as its rival Amazon is increasingly making its own moves in the health-care market.
Walmart and Humana are having early-stage talks about strengthening their existing partnership, people familiar with the matter tell CNBC. As part of those talks, an acquisition has also been discussed, but such deal talks are very early stage and may not happen.
For Walmart, a deal to buy Humana would not come cheap: The health insurer had a market valuation of $37 billion, as of Thursday's close. Aetna's failed 2015 acquisition of Humana was valued at $54 billion.
The firms have held preliminary talks exploring a possible combination, including a potential merger, according to the Wall Street Journal.
"Humana is potentially an attractive asset for Walmart as it would help diversify its revenue stream," Cantor Fitzgerald health insurance analyst Steven Halper wrote in a recent report, noting that the retailer and insurer already partner on a co-branded Medicare prescription drug plan.
"But our industry contacts suggest that Humana has been minimizing its relationship with Walmart recently," Halper added.
Walmart may very well want to reinforce its partnership now, partly in response to retail pharmacy giant CVS Health's $69 billion deal to acquire insurer Aetna, and health Cigna's $54 billion proposed merger with pharmacy benefits manager Express Scripts. Additionally, there is a threat of online retailer Amazon's potential entry into the pharmacy business.
The healthcare organization that accurately captures and analyzes the data of the fast-growing U.S. demographic — seniors — stands to lead the industry of the future.David Friend, M.D.managing director at consulting firm BDO
"I think it's interesting to contemplate what the disruption could bring because I think that it makes everybody more creative in how they think about what's possible," said Tracy Watts, senior partner at health benefits consulting firm Mercer.
"That's some of the good that has come out of these various types of partnerships and merger announcements," Watts said.
The key for all of these deals is whether they can provide consumers with a more affordable and effective new health care model.
CVS and Aetna are proposing to use pharmacy clinics to provide coordinated, personalized medical care for members with chronic conditions at a lower cost, by leveraging prescription and medical data.
Yet some analysts say a Walmart-Humana combination has the potential to be even more transformative. Humana already has its own pharmacy benefits unit, and has launched nearly 200 standalone clinics to help manage chronic conditions for its Medicare members. Walmart has pharmacies in most of its 4,700 stores and Sam Club brands, and in-store clinics in Georgia, South Carolina, and Texas. An expanded partnership or merger with Humana catering to Medicare patients could help the retailer become a major provider of primary care.
"The healthcare organization that accurately captures and analyzes the data of the fast-growing U.S. demographic — seniors — stands to lead the industry of the future," said Dr. David Friend, managing director at consulting firm BDO.
Walmart has also tried to promote its in-store clinics as a lower cost point of primary care for its workers. As the nation's single largest employer, with more than 1.5 million workers, acquiring an insurer could ostensibly help Walmart bring down health costs for its own workforce.
Still, buying a health-care company for its own employees' benefit "would be a terrible reason, because you paid for the value of Humana upfront when you purchased them," said Craig Garthwaite, director of the Health Enterprise Management Program at Northwestern University's Kellogg School of Management.
A woman waits to speak with Medicare consultants for enrollment in the Medicare Part D program in New York City.Getty Images
Still, large employers are pushing for new models to reign in health costs and improve care. Amazon, Berkshire Hathaway, and J.P. Morgan Chase have joined together to create a firm, which will try to reduce costs and improve care for their combined workforces of 1 million people.
Three years ago, when four of the major health insurers rushed to partner on large-scale mergers, the deals were blocked by the Department of Justice, and ultimately rejected by the courts on anti-trust grounds.
Analysts say the CVS-Aetna and Cigna-Express Scripts deals are different, because they are not mergers of rivals but rather vertical deals which would not result in fewer competitors in the medical or pharmacy benefit markets.
"On the anti-trust side, I don't see huge issues… with any of these three vertical mergers," said Garthwaite, though he added that integrated medical pharmacy benefits firms could make it harder for new standalone entrants.
"If the barrier to entry is that everyone really likes having their insurer and their provider integrated together that it creates a much more attractive insurance class, then we should allow that activity to happen and we should regulate it," he explained.
"It shouldn't be that we say we're not going to allow a good product to emerge because we're afraid," Garthwaite added. Last month, the Department of Justice asked CVS and Aetna extended its review of the merger, asking the companies for more information. The firms still expect the deal to be approved in the second half of the year.
Even if regulators sign off on the deals, there are risks to execution for both Walmart and CVS, as they try to integrate health insurance, pharmacy, and primary care services at such a large scale.
But Mercer's Watts says even if the deals aren't realized, health-care firms are clearly searching for a model that will provide more value and better care for consumers.
"The fact that people gravitate to how much better something could be in some of these partnerships — I think that's good. I think that in the long term that's good for health care delivery," Watts said.
—CNBC's Lauren Hirsch contributed to this report.
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8d9aa800cba434ccba486d3e6edad856 | https://www.cnbc.com/2018/04/02/first-on-cnbc-national-trade-council-director-peter-navarro-speaks-with-cnbcs-kelly-evans-today.html | FIRST ON CNBC: National Trade Council Director Peter Navarro Speaks with CNBC’s Kelly Evans Today | FIRST ON CNBC: National Trade Council Director Peter Navarro Speaks with CNBC’s Kelly Evans Today
WHEN: Today, Monday, April 2, 2018
WHERE: CNBC's "Closing Bell"
The following is the unofficial transcript of a FIRST ON CNBC interview with National Trade Council Director Peter Navarro and CNBC's Kelly Evans on CNBC's "Closing Bell" (M-F 3-5PM) today Monday, April 2, 2018. Following are links to video from the interview on CNBC.com: https://www.cnbc.com/video/2018/04/02/wh-trade-director-navarro-reducing-trade-deficit-will-add-jobs-to-us-economy.html?play=1, https://www.cnbc.com/video/2018/04/02/wh-trade-director-president-is-committed-to-leveling-playing-field-with-china.html?play=1, https://www.cnbc.com/video/2018/04/02/wh-trade-director-navarro-president-hit-the-nail-on-the-head-about-amazon.html?play=1m, & https://www.cnbc.com/video/2018/04/02/wh-trade-director-navarro-i-dont-see-any-inflation-in-the-economy.html?play=1.
All references must be sourced to CNBC.
KELLY EVANS: NOW THE MARKETS TODAY WERE PLUNGING. WAS IT FEARS OF A TRADE WAR WITH CHINA? IN A FIRST ON CNBC INTERVIEW WE ARE JOINED NOW BY NATIONAL TRADE COUNCIL DIRECTOR PETER NAVARRO. MR. NAVARRO, THANK YOU FOR JOINING US. WHAT A DAY.
PETER NAVARRO: WHAT A DAY.
EVANS: WHAT'S THE PRESIDENT THINKING ABOUT THE MARKET?
NAVARRO: LOOK, THE MARKET IS REACTING IN A WAY WHICH DOES NOT COMPORT WITH THE STRENGTH, THE UNBELIEVABLE STRENGTH IN PRESIDENT TRUMP'S ECONOMY. I MEAN, EVERYTHING IN THIS ECONOMY IS HITTING ON ALL CYLINDERS BECAUSE OF PRESIDENT TRUMP'S ECONOMIC POLICIES. WE'VE CUT TAXES. THAT'S STIMULATING INVESTMENT IN A WAY WHICH WILL BE NONINFLATIONARY. THAT'S GOING TO DRIVE UP PRODUCTIVITY AND WAGES. THAT'S ALL GOOD. MICK MULVANEY IN OMB IS ORCHESTRATING ONE OF THE BEST DEREGULATION EVENTS SINCE THE REAGAN ADMINISTRATION. THAT'S A SUPPLY SIDE BENEFIT TO THE ECONOMY THAT PUSHES INFLATION DOWN AND GROWTH UP. WE'VE GOT AN UNLEASHING HISTORICALLY OF THE ENERGY SECTOR, WHICH IS GOING TO DRIVE DOWN COSTS TO THE AMERICAN MANUFACTURERS, MAKE THEM COMPETITIVE EVEN AS IT DRIVES DOWN COSTS TO CONSUMERS AND ALLOWS THEM TO SPEND MORE AND GET MORE OUT OF THEIR DOLLAR. IN TERMS OF TRADE POLICY, BY REDUCING THE TRADE DEFICIT, WHICH IS THE INTENT OF THE PRESIDENT'S FAIR AND RECIPROCAL TRADE POLICIES, THAT WILL ADD THOUSANDS OF JOBS TO THIS ECONOMY AND BRING IN FOREIGN INVESTMENT. I MEAN, WHEN WE PUT THE TARIFFS ON SOLAR AND WASHING MACHINES IN JANUARY, THAT BROUGHT IN A FLOOD OF NEW INVESTMENT. SO YOU WONDER, AND IF I PUT MY OLD HAT ON AS A FINANCIAL MARKET ANALYST, I'M LOOKING AT THAT – THIS MARKET AND THE ECONOMY AND THINKING, THE SMART MONEY WILL BUY ON THE DIPS HERE BECAUSE THE ECONOMY IS AS STRONG AS AN OX.
EVANS: IS THE PRESIDENT -- HAVE YOU HEARD HIM COMMENT ON THE MARKET WEAKNESS, PETER? IS HE ASKING ABOUT IT? HAVE PEOPLE –
NAVARRO: I HAVEN'T SPOKEN WITH HIM TODAY. BUT LET'S BE CLEAR, THE PRESIDENT -- THE PRESIDENT'S FOCUS, SINGULAR FOCUS IS ON ECONOMIC GROWTH, RISING WAGES AND A STRONG MANUFACTURING AND DEFENSE INDUSTRIAL BASE.
EVANS: I KNOW, BUT YOU KNOW – I KNOW HE'S WATCHING IT. HE USED TO TWEET ABOUT IT ALL THE TIME.
NAVARRO: IF WE HIT ALL POINTS OF THAT COMPASS, HANG ON, IF WE HIT ALL POINTS OF THAT COMPASS, THE MARKET WILL GO UP. SO THAT'S KIND OF WHERE WE'RE AT. I THINK IT'S THE AARON RODGERS THING EVERYBODY NEEDS TO RELAX AND LOOK AT THE CHESSBOARD HERE. LOOK, THIS ECONOMY IS JUST STRONG. IT'S NOT JUST THE U.S. ECONOMY. WE HAVE THE SYNCHRONICITY GLOBALL. WHERE EUROPE AND ASIA, LATIN AMERICA, THEY'RE ALL DOING VERY WELL MOVING TOGETHER ON THIS. THAT HELPS EVERYBODY. SO, AGAIN, RELAX.
EVANS: LET'S TALK ABOUT THE CHESSBOARD FOR A MOMENT BECAUSE JUST THIS AFTERNOON THERE WAS WORD THE PRESIDENT WANTS TO WRAP UP THESE NAFTA NEGOTIATIONS WITHIN TWO WEEKS. IS THAT REALISTIC?
NAVARRO: WELL, THE ISSUE HERE, WHICH THE PRESIDENT UNDERSTANDS KEENLY, IS THAT THE MEXICAN ELECTIONS ARE APPROACHING. AND YOU'RE GONNA GET TO A CERTAIN POINT, JUST LIKE AS YOU DO IN THE AMERICAN ELECTIONS, WHERE IT BECOMES DIFFICULT TO DO MEANINGFUL POLICY CHANGES. SO, I THINK WHETHER IT'S TWO WEEKS OR 30 DAYS, IT'S GOT TO BE SOON. AND AMBASSADOR ROBERT LIGHTHIZER, THE U.S. TRADE REPRESENTATIVE, HAS BEEN DOING A GREAT JOB GOING OF THROUGH MULTIPLE ROUNDS WITH HIS CANADIAN AND MEXICAN COUNTERPARTS. SO WE NEED TO BE HOPEFUL ABOUT THIS BUT NOT GET OUR EXPECTATIONS UP TOO HIGH. LET'S SEE WHAT HAPPENS. WHAT THE AMERICAN PEOPLE NEED TO KNOW IS THAT THEY'RE IN VERY GOOD HANDS WITH THE TWO BEST NEGOTIATORS IN AMERICA, THE PRESIDENT HIMSELF AND AMBASSADOR LIGHTHIZER.
EVANS: WHAT DOES IT MEAN TO HAVE THE NEGOTIATIONS FINISHED? DO YOU THINK IT'S MORE IMPORTANT TO THE PRESIDENT TO FINISH THE NEGOTIATE, PERIOD, WITH THE ELECTION COMING UP OR THAT THERE'S FUNDING FOR THE WALL OR THAT MEXICO SAYS WE'LL DO MORE TO HELP KEEP CENTRAL AMERICAN IMMIGRANTS FROM COMING THROUGH TO THE U.S.
NAVARRO: LOOK, IMMIGRATION POLICY IS CRITICAL TO THIS ADMINISTRATION. IT'S THE FOUR PILLARS OF THAT POLICY HAVE BEEN SPELLED OUT AND THE PRESIDENT IS FIRMLY COMMITTED TO THAT. THE NAFTA NEGOTIATIONS ARE A SEPARATE ISSUE FROM THAT. AS SAID, THERE'S LITERALLY HUNDREDS OF PEOPLE ON ALL THREE SIDES OF THIS NEGOTIATION MEETING OVER THE LAST NUMBER OF MONTHS, TRYING TO COME WITH A GOOD SOLUTION TO A BAD AGREEMENT. I MEAN, YOU GO BACK TO 1994 WHEN BILL CLINTON SIGNED THAT, WE WERE PROMISED 200,000 NEWS JOBS AND THE MOON. AND WHAT WE BASICALLY GOT WAS HELL FOR THE AMERICAN WORKERS AND HELL FOR THE AMERICAN MANUFACTURERS AND THAT'S GOT TO END.
EVANS: PETER, WHAT DO YOU MAKE OF CHINA'S ANNOUNCED TARIFFS THIS MORNING? SOUNDS LIKE THEY ARE GOING AFTER PORK. I THINK THEY'RE GOING TO GIVE US A 25% TARIFF. LOOKS LIKE THEY'RE NOT PUTTING SOYBEANS ON THAT LIST, BUT DO YOU THINK THEY'RE TARGETING TRUMP STATES AND TRUMP VOTERS?
NAVARRO: HERE'S THE BIGGER QUESTION TO ME: YOU HAVE CHINA, WHICH EVERYBODY KNOWS AROUND THE WORLD IS STEALING OUR INTELLECTUAL PROPERTY AND ALSO USING INDUSTRIAL POLICIES WHICH FORCE THE TRANSFER OF OUR INTELLECTUAL PROPERTY TO CHINESE FIRMS AND ALLOW THEM TO OUTCOMPETE US. THE PRACTICAL RESULT OF THAT HAS BEEN THE LOSS OF MILLIONS OF JOBS AND 60,000 FACTORIES TO CHINESE SOIL. NOW, ALL THE PRESIDENT IS DOING IS TRYING TO DEFEND AMERICAN WORKERS AND AMERICAN BUSINESSES AGAINST THAT ECONOMIC AGGRESSION OF CHINA. WHAT'S CHINA DOING? THEY'RE BASICALLY THROWING ANOTHER PUNCH AT US. I'M NOT SURE THAT'S THE BEST WAY TO GET THE CONFIDENCE OF THE AMERICAN PEOPLE BEHIND CHINA.
EVANS: HOW SHOULD THE PRESIDENT AND THE U.S. RESPOND? PETER, IF WE READ THIS AS THE US IS SIMPLY TRYING TO LEVEL THE PLAYING FIELD AND NOW CHINA IS COMING FORWARD TO PUT ON MORE TARIFFS, WHAT SHOULD THE U.S. RESPONSE BE?
NAVARRO: I DON'T THINK THIS IS GOING TO BE AN ACTION/RESPONSE, ACTION/RESPONSE. THAT'S NOT WHAT THIS SHOULD BE ABOUT. THAT JUST LEADS TO ESCALATION SPIRALS. WHAT I DO KNOW IS THAT THE PRESIDENT IS FIRMLY COMMITTED TO A COURSE OF ACTION WHICH WILL LEVEL THE PLAYING FIELD BETWEEN THE UNITED STATES AND CHINA AND HE HAS THE FULL SUPPORT OF THE AMERICAN PEOPLE. HE WAS ELECTED, IN MANY WAYS, ON THE BASIS OF HAVING FAIR AND RECIPROCAL TRADE, PARTICULARLY WITH CHINA. SO, THE COURSE HERE IS GOING TO BE A COURSE OF RESOLUTENESS AND FIRMNESS IN TERMS OF RIGHTING THE WRONGS THE AMERICAN PEOPLE HAVE SUFFERED. AND AGAIN, I WANT TO SAY, JUST – LOOK, THEY STEAL OUR STUFF. EVERYBODY KNOWS THAT. THEY FORCE THE TRANSFER OF OUR STUFF. EVERYBODY KNOWS THAT. WHAT ARE WE SUPPOSED TO DO? ARE WE SUPPOSED TO NOT DEFEND OURSELVES AND THEN WHEN WE DEFEND OURSELVES, ARE WE SUPPOSED TO TAKE ANOTHER PUNCH FROM THEM? I MEAN, I THINK THE CHINESE SIDE NEEDS TO THINK VERY CAREFULLY ABOUT HOW THEY RESPOND BECAUSE THE AMERICAN PEOPLE ARE NOT GOING TO STAND FOR THAT KIND OF RESPONSE.
EVANS: BUT I WONDER, PETER, IT'S INTERESTING, WE'VE SEEN MULTIPLE EXAMPLES IN RECENT MONTHS OF AMERICAN COMPANIES NOT NECESSARILY STANDING UP TO CHINA AND, IN FACT, KIND OF BOWING DOWN TO THEIR WISHES. APPLE, FOR EXAMPLE, MOVING SOME OF ITS CLOUD OPERATIONS INTO CHINA. YOU KNOW, WHETHER IT WAS MERCEDES OR ANYBODY WHO'S – MARRIOTT WHEN THEY PUT TAIWAN AS AN INDEPENDENT COUNTRY IN A DROP-DOWN LIST AND THEN HAD TO BACK OFF AND SAY, "HEY, WE'RE SORRY." DO YOU SEE CORPORATE AMERICA AS A PARTNER IN THIS EFFORT OR ARE THEY GETTING IN THE WAY?
NAVARRO: THE PROBLEM IS – THE PROBLEM HISTORICALLY IS THAT PREVIOUS PRESIDENTS HAVE NOT HAD THE BACK OF CORPORATE AMERICA. THEY BASICALLY LET CORPORATE AMERICA GO TO CHINA, GET RIPPED OFF AND THAT HAS REBOUNDED BACK TO THE AMERICAN PEOPLE AND THE AMERICAN MANUFACTURERS HERE. THIS PRESIDENT, PRESIDENT DONALD J. TRUMP, HAS THE BACK OF AMERICAN BUSINESSES AND WORKERS AND THAT'S GOING TO BE THE DIFFERENCE. SO, I THINK THE DYNAMIC GOING FORWARD IS GOING TO BE A LOT HEALTHIER AND WE'RE GOING TO SEE WHAT WE'RE GOING TO SEE BUT THE STATUS QUO CANNOT HOLD HERE. WE CAN NO LONGER HAVE COMPANIES, WHETHER IT BE APPLE OR ANYBODY ELSE, GO TO CHINA, SURRENDER THEIR TECHNOLOGY AND THEN HAVE CHINESE COMPETITORS COME BACK AND BEAT US IN THE MARKETPLACE UNFAIR AND NONRECIPROCALLY. THAT'S AN UNSUSTAINABLE EQUILIBRIUM FOR THE GLOBAL ECONOMY. THAT'S WHY I SAY, I MEAN, IF YOU THINK ABOUT THE TRADE ISSUE, ULTIMATELY, I THINK IT'S REALLY A GOOD THING FOR THE MARKET THAT WE ARE DOING THESE KINDS OF TRADE ACTIONS BECAUSE WHAT WE'RE TRYING TO DO WITH THIS SITUATION IS TRY TO GET TO A PLACE WHERE WE HAVE FAIR AND RECIPROCAL TRADE, BALANCED TRADE ACROSS NATIONS AND EVERYBODY TRADES FREELY IN A WAY THAT TEXTBOOKS USED TO WRITE ABOUT BUT WHICH WE NEVER GET IN REALITY. I MEAN, THAT'S -- AND I TEACH THAT STUFF. I MEAN, LET'S REMEMBER IF ANYBODY KNOWS WHAT GOES WRONG WITH THOSE MODELS, IT'S THE GUY WHO KNOWS HOW TO TEACH THEM.
EVANS: LET ME ASK YOU ABOUT AMAZON FOR JUST A SECOND BECAUSE WE SOMETIMES HEAR PEOPLE SAY THE U.S. SHOULD DEFEND ITS CORPORATE CHAMPIONS, IN MUCH THE WAY CHINA, FRANKLY, IS DOING. IT SHOULD SAY, "YOU KNOW WHAT, AMAZON AND FACEBOOK AND GOOGLE, THESE ARE COMPANIES THAT HAVE MADE INCREDIBLE INROADS AROUND THE WORLD, THEY NEED TO BE SUPPORTED," ET CETERA. YOU KNOW WHERE I'M GOING WITH THIS THE PRESIDENT CONTINUES TO ATTACK AMAZON. THERE'S A LOT OF CHATTER ABOUT WHETHER IT WILL BE FOUND GUILTY OF BEING A MONOPOLY, OF TAKING ADVANTAGE OF THE POST OFFICE, OF NEEDING TO BE BROKEN UP AND HAVING TOO MUCH MARKET POWER. WHAT'S YOUR ASSESSMENT? IS AMAZON TOO BIG OR NOT?
NAVARRO: WELL, I'LL LET THE DEPARTMENT OF JUSTICE DEAL WITH THE ANTI-TRUST ISSUES AND STAY WAY OUT OF THEIR LANE, BUT I WOULD SAY TO YOU THAT PRESIDENT DONALD TRUMP HAS HIT IT RIGHT ON THE NAIL – THE NAIL ON THE HEAD ABOUT AMAZON ON A COUPLE OF POINTS. I MEAN, FOR EXAMPLE, AMAZON DOESN'T PAY THE KINDS OF SALES TAX IT COULD. IT HAS NOW GOTTEN TO THE POINT WHERE IT COLLECTS SALES TAXES FROM ALL 45 OF THE STATES THAT LEVY THEM. BUT IN A LOT OF -- SOME OF THOSE STATES IT DOESN'T COLLECT THE LOCAL TAXES. AND THAT GIVES AN ADVANTAGE TO AMAZON OVER THE LOCAL RETAILERS. AND MORE IMPORTANTLY, THERE'S OVER 800,000 INDEPENDENT VENDORS THAT ACCOUNT FOR ABOUT HALF OF THE $136 BILLION IN ANNUAL REVENUES TO AMAZON. AND AMAZON DOESN'T EVEN TRY TO COLLECT MUCH OF THOSE SALES TAXES AT ALL, AND THAT'S A HUGE DISADVANTAGE TO THE BRICKS AND MORTAR RETAIL STORES. AND DON'T FORGET, AMAZON EARNED A TON OF MONEY LAST YEAR AND THEY DIDN'T PAY ANYTHING IN TAXES. AND FINALLY, ON THE POST OFFICE ISSUE, THERE ARE SOME STUDIES THAT SHOW IF AMAZON PAID THE FULL FREIGHT ON EVERY PARCEL IT SHIPPED WITHOUT PAYING ITS SALES TAX PROPERLY, THAT WOULD BE ABOUT $1.50 PER PARCEL. SO, THE PRESIDENT IS DEAD RIGHT ABOUT AMAZON. AND AGAIN, THIS IS ABOUT FAIRNESS, RECIPROCITY, AND THAT'S WHAT THE PRESIDENT'S ALL ABOUT.
EVANS: SO, IT SOUNDS LIKE YOU'RE MORE FOCUSED ON SAYING, AND LOOK, IF THE POST OFFICE RAISES PRICES FOR AMAZON, AMAZON MIGHT SAY THAT'S GREAT, WE'RE GONNA BUILD OUT OUR OWN NETWORK, WE DON'T NEED YOU. AND THAT COULD HURT THE U.S. TAX PAYER. IT SOUNDS LIKE YOU'RE MORE FOCUSED ON THE POST OFFICE ISSUE, AND MAKING IT MERCHANTS PAY SALES TAXES, A LOT OF WHICH ARE SMALL BUSINESSES, RATHER THAN BREAKING IT UP.
NAVARRO: WELL, THE BIG ISSUE, I THINK, THAT THE PRESIDENT HAS HIT UPON IS THIS FAILURE TO PAY SALES TAX. I MEAN, LOOK, I LIVED IN CALIFORNIA FOR YEARS BEFORE I GOT TO WASHINGTON, D.C. AND THE SWAMP, AND I REMEMBER, YOU KNOW, ORDERING STUFF ON AMAZON, SITTING IN A COUNTY WHERE THE SALES TAX WAS UP TO ALMOST 10%, THINKING, "WOW, I CAN BUY ON AMAZON 10% OFF." IT'S LIKE THAT HAS SORT OF GONE AWAY NOW AS AMAZON HAS PRETENDED TO COLLECT ITS SALES TAX BUT REMEMBER, HALF OF – ALL THOSE INDEPENDENT VENDORS, IT'S NOT REALLY -- AMAZON IS NOT DOING ITS JOB. SO WE NEED TO GET TO THE BOTTOM OF THAT. THESE BRICKS AND MORTAR STORES ARE AN IMPORTANT PART OF THE FABRIC OF THIS COUNTRY, AND THEY SHOULDN'T HAVE TO COMPETE UNFAIRLY AGAINST THE BIG BEHEMOTH OF AMAZON.
EVANS: WELL LET ME ASK YOU ABOUT THE ECONOMY BEFORE WE LET YOU GO. AND SIMPLY AS YOU MENTIONED, THERE'S A LOT OF STRENGTH OUT THERE. BUT WE'RE SITTING HERE LOOKING AT NOT ONLY LOOKING AT THE SELLOFF IN STOCKS TODAY, PETER, BUT INTERESTINGLY ENOUGH, THE YIELD ON THE BENCHMARK, THE TEN-YEAR, YOU KNOW, TREASURY NOTE, IT'S FALLING. IT WAS ALMOST 3% AND NOW CLOSER TO 2.7%. FRANKLY, NO ONE AROUND HERE CAN REALLY EXPLAIN IT. WHAT DO YOU THINK IS GOING ON?
NAVARRO: YEAH, I WAS A LITTLE PUZZLED WHEN THE FED ANNOUNCED THREE RATE HIKES BEFORE THE END OF THE YEAR BECAUSE WHEN I LOOK AT THE CHESS BOARD, I DON'T SEE ANY INFLATION TO SPEAK OF IN THE ECONOMY. AND A LOT OF REASON IS THINGS LIKE THE PRESIDENT'S TAX CUTS, WHICH ARE GOING TO STIMULATE A LOT OF INVESTMENT, PRODUCTIVITY, GROWTH, DOWNWARD PRESSURE ON WAGES, AND REMEMBER, THE SUPPLY SIDE EFFECTS OF DEREGULATION. I THINK IF YOU SEE THE YIELDS GO DOWN, THAT'S -- THAT HAS AS MUCH TO DO WITH THE FACT THAT THERE'S MODERATING INFLATIONARY PRESSURES DUE TO PRODUCTIVITY GROWTH AND SUPPLY SIDE FACTORS, NOT SLOWER GROWTH.
EVANS: YEAH – BUT DOES THAT MEAN, PETER – WHICH IS GREAT. YOU'RE RIGHT AND THAT'S THE IDEAL OUTCOME. BUT FINAL QUESTION HERE, DOES THAT MEAN THAT THERE'S NO REASON TO KEEP HIKING INTEREST RATES?
NAVARRO: WELL, THAT'S THE FEDERAL RESERVE JOB. ALL I CAN TELL YOU IS I WAS SURPRISED WHEN I SAW THAT ANNOUNCEMENT BASED ON MY READ OF THE INFLATION CHESSBOARD. I REMEMBER IN THE LATE 90s WHEN ALAN GREENSPAN WAS HURRYING TO RAISE INTEREST RATES AND WE HAD TREMENDOUS PRODUCTIVITY GROWTH AND LOW INFLATIONARY PRESSURES THEN. SO, AGAIN, YOU KNOW, BOTTOM LINE HERE IS THAT THE MARKET –
EVANS: IS IT A MISTAKE? WAS IT A MISTAKE THEN? IS IT A MISTAKE NOW?
NAVARRO: I WON'T SAY THAT. I'M NOT IN -- THAT'S THE FEDERAL RESERVE CHAIRMANS LANE. AND WE'VE GOT A GOOD – KEVIN HASSETT, THE COUNCIL ECONOMIC ADVISORS.
EVANS: I THINK YOU'RE HINTING THAT IT'S -- HINTING AT A MISTAKE.
NAVARRO: ALL I'M SAYING IS TO THE INVESTORS WATCHING CNBC HERE IS THAT THE ECONOMY LOOKS VERY, VERY STRONG ON ALL PARAMETERS AND DOESN'T APPEAR TO BE SIGNIFICANT INFRLATIONARY PRESSURES THAT WOULD DETRACT FROM THAT STRENGTH, SO IT'S ALL GOOD.
EVANS: ALRIGHT PETER NAVARRO. THANK YOU FOR YOUR TIME.
NAVARRO: MY PLEASURE.
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3746b39ca1b34950f4b8bd65120704e4 | https://www.cnbc.com/2018/04/02/stocks-on-track-for-worst-start-to-april-since-the-great-depression.html | Stocks post worst start to April since the Great Depression | Stocks post worst start to April since the Great Depression
Crowds gather outside the New York Stock Exchange during the Wall Street crash in 1929.Universal History Archive | Getty Images
The stock market's start to the second quarter was its worst since the Great Depression.
With closing down more than 2.2 percent Monday, the broad market index posted its worst start to April since 1929, according to S&P Global.
The index also closed below its 200-day moving average – a key technical level – for the first time since June 2016, 442 straight days.
Bespoke Investments Co-Founder Justin Walters, who also noted the historic nature of the close, said in an email that equity fears aren't likely to abate until earnings arrive.
"Based on recent market action, the bears clearly have control right now," Walters wrote. "The path of least resistance is lower until something comes along to reverse that trend."
The S&P 500 fell back into correction territory Monday as technology led the market lower, with names like Amazon and Netflix both down more than 5 percent. Intel fell about 8.5 percent after Bloomberg reported that Apple will no longer use its semiconductor chips as early as 2020.
The Dow Jones industrial average fell 1.9 percent – or 458 points – as China's retaliatory tariffs against U.S. agricultural goods stoked fears of a global trade war. Dow stocks with large international markets (and thus exposed to global tariffs) such as Boeing and 3M led decliners.
VIDEO1:3401:34News Update – Market CloseNews Briefing
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7c8e49709ec2cbfe7e4a990b29322f9e | https://www.cnbc.com/2018/04/02/trump-wants-a-nafta-trade-deal-with-canada-and-mexico-within-two-weeks.html | Trump reportedly wants a NAFTA overhaul deal within two weeks | Trump reportedly wants a NAFTA overhaul deal within two weeks
VIDEO0:3900:39Peso rises on Trump's push for NAFTA deal within 2 weeksClosing Bell
President Donald Trump is pushing to announce a tentative new North American Free Trade Agreement within two weeks, Bloomberg reported Monday, citing three people familiar with the talks.
The White House wants leaders from Canada and Mexico, the other two members of the trade deal, to announce the framework of an agreement at the Summit of the Americas in Peru, which starts April 13, Bloomberg reported. Negotiators would have to finish final details of the new plan later.
The Trump administration would like to see changes, particularly in the automotive industry, but two weeks "is probably too optimistic," a White House official who declined to be named told CNBC. The official called that deadline "a marker that we'd like to see something done by."
Representatives from the three countries have negotiated the workings of a revised agreement for months. Trump has repeatedly criticized the deal, arguing it hurts American workers by pushing jobs out of the country.
He has threatened to pull the U.S. from the agreement if the three nations cannot improve it.
VIDEO4:0104:01Trump threatens to end DACA and stop NAFTASquawk Box
During a string of tweets about immigration policy Monday morning, Trump took another swipe at the trade deal, saying Mexico "is making a fortune" from it.
Trump tweet
The report comes amid a string of trade actions from the Trump administration. Last week, the White House said the U.S. reached a tentative major trade deal with South Korea, which Trump subsequently threatened to delay.
This week, he is also expected to announce a list of Chinese imports the U.S. plans to target with tariffs.
A White House spokeswoman declined to comment on the Bloomberg report.
Read the full Bloomberg story here.
— CNBC's Eamon Javers contributed to this report
VIDEO2:5602:56WH Trade Director: NAFTA negotiations separate from immigration policyClosing Bell
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2fcb791542cd0af356d2350c97ca9b24 | https://www.cnbc.com/2018/04/03/bitcoin-had-its-worst-start-to-the-year-ever-but-a-rebound-could-come.html | VIDEO1:1001:10Bitcoin is likely to rebound in the second quarter, says crypto expertFutures Now
After bitcoin closed out the worst first quarter in its history, one cryptocurrency expert sees it rebounding from recent losses and possibly bouncing back to early year highs.
"Q2 is always good for Bitcoin," Brian Kelly, founder of Brian Kelly Capital and a "Fast Money" contributor, told CNBC's "Futures Now" on Tuesday. "There will be a significant rally here if seasonality brings tail winds."
The cryptocurrency usually performs well in the second quarter, according to historical data. Seasonal tail winds include an upcoming annual development cycle and a number of big conferences, such as Consensus in May, that usually inspire positive sentiment, said Kelly.
Seasonality and a shift in sentiment should power bitcoin gains in the second quarter, said Kelly. The reasons for a bounce are twofold: first, the tax-selling season that pressured prices at the end of the first quarter is now winding down, and second, regulatory fears that also squeezed cryptocurrencies since the beginning of the year are beginning to fade.
"We've gone to the extreme of the regulation which is South Korea thinking they're going to ban it, the U.S. talking about everything being a security, to walking it back," Kelly said. "You're seeing a shift again in that type of thing. I think most of that's behind us."
Regulatory threats spiked in the first quarter. Countries including South Korea and China expressed a willingness to tighten regulations on cryptocurrencies, though fears over their severity have eased since January.
A potential deal involving Japanese brokerage firm Monex and crypto exchange Coincheck is an example of this shift in sentiment, said Kelly. Monex could reportedly put in a majority stake bid for Coincheck as soon as this week, according to the Nikkei Asian Review.
Even if countries were to swing the regulatory ax, it could turn out to benefit the crypto markets, according to Kelly.
"I don't think regulation is a bad thing," he said. "It doesn't kill any other market as long as we do it correctly and we don't stifle innovation. Regulation might actually increase adoption."
This second quarter has already started on better footing. Bitcoin has increased 8.1 percent since its March close and added about $400 on Tuesday alone. The cryptocurrency lost around 50 percent of its value over the first three months of this year, worse than the 39 percent decline seen in the first quarter of 2014.
VIDEO5:3505:35Why bitcoin could be about to make a major comebackFutures Now
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e1f79fbde23a9d1fbc8dd42e8b994d2f | https://www.cnbc.com/2018/04/03/chinese-ambassador-to-us-we-will-take-measures-to-fight-back-very-soon.html?dm_i=42XP,DNPN,2M7M5K,1FR77,1 | China’s ambassador to the US explains why the country is striking back | China’s ambassador to the US explains why the country is striking back
VIDEO6:4606:46China's US ambassador on the latest tariffs from the White HouseSquawk Box Asia
China's ambassador to the United States explained why his country was striking back against U.S. trade measures, as Beijing slapped a new tariff hike on $50 billion worth of American goods.
"We certainly don't want to have any trade war with anybody, but people have to understand who started all this," said ambassador Cui Tiankai.
Speaking ahead of the official announcement, he said China would resort to the World Trade Organization dispute settlement mechanism.
"We'll, in accordance with Chinese laws, take measures to fight back," he said.
Cui's comments come after President Donald Trump's White House unveiled a list Tuesday of Chinese imports the administration proposes to target as part of a crackdown on what the president deems unfair trade practices.
Sectors covered by the White House's proposed tariffs include products used for robotics, information technology, communication technology and aerospace.
On Wednesday morning, Beijing then hit back with additional tariffs on 106 U.S. products. The new charges are targeted at goods including soybeans, cars and whisky. The effective start date for the tariffs is set to be revealed at a later time.
Officials in Washington and other countries accuse China of unfair trade practices, including a failure to protect intellectual property. An increasingly hot-button issue is Beijing's practice of requiring foreign companies to hand over technological know-how in exchange for access to its domestic market.
Asked by CNBC about those allegations, the ambassador claimed the United States has failed to cite specific instances of when China has forced U.S. firms to hand over technology in order to do business in China.
China has been broadly accused by companies from outside the country of forcing them to undertake "technology transfers" in order to operate there. Beijing also forces many foreign companies into joint ventures with Chinese partners before allowing them access to its market.
Chinese Ambassador to the United States Cui Tiankai speaks at a reception celebrating the 90th anniversary of the founding of the Chinese People's Liberation Army (PLA) at the Chinese embassy in Washington D.C., the United States, on July 27, 2017.Ting Shen | Xinhua | Getty Images
A White House official who declined to be named told CNBC that the government is discussing both preparations for potential Chinese retaliation and potential further action from the U.S.
The White House feels that China has to be held to account, the official said, emphasizing that Tuesday's actions were "targeted with a clear message."
The ambassador, however, questioned the efficacy of the U.S. trade approach.
We have done the utmost to avoid this kind of situation, but if the other side makes the wrong choice, then we have no alternative but to fight back.Cui TiankaiChina ambassador to the United States
"Such protectionism will not protect anybody. It will not protect American workers or American farmers. It will not protect American businesses or American consumers," Cui said. "It will hurt everybody including the U.S. economy itself."
The Chinese diplomat said the two economies "are so closely interconnected" that "any unilateral measures will hurt the other side, but the end result would be that it would hurt itself."
"We have done the utmost to avoid this kind of situation, but if the other side makes the wrong choice, then we have no alternative but to fight back," he added.
But even beyond the economic effects to the two countries, Cui warned of a broader fallout from the trade disputes.
"In today's global economy, almost everything is interconnected. So when people take some wrong measures, when people take some protectionist measure, it will hurt people's confidence in the overall prospects for the economy. It may hurt finance, it may hurt trade, it may hurt economic performance, it may hurt consumer confidence — everything," he said.
Still, the ambassador left the door open for a deescalation between the world's two largest economies: "We are always ready to continue and intensify our dialogue and communication with the U.S. side on any possible economic or trade issues, but we need reciprocity. Our goodwill has to be met by the same degree of goodwill."
—CNBC's Eamon Javers contributed to this report.
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d07bee99352a843b4487fa41f94ec86c | https://www.cnbc.com/2018/04/03/pfizer-and-pg-are-in-talks-on-sale-of-consumer-business-though-far-apart-in-price-sources.html?dlbk | Pfizer in talks with P&G on sale of its consumer business, though they are far apart on price: Sources | Pfizer in talks with P&G on sale of its consumer business, though they are far apart on price: Sources
VIDEO2:1002:10Pfizer in talks with P&G on consumer business saleSquawk on the Street
Pfizer is in talks with Procter & Gamble on a sale of its consumer business, sources tell CNBC.
The business includes Chapstick lip balm, Advil pain reliever and Centrum vitamins and has been for sale for months. Drug giants GlaxoSmithKline and Reckitt Benckiser Group as well as Johnson & Johnson have already looked at the business.
P&G remains the one potential bidder, though the two sides are far apart on price, with P&G looking to pay $15 billion, while Pfizer was seeking $20 billion or more, the sources said.
Pfizer is considering other options, including a joint venture with other drug makers. The pharmaceutical giant hopes to reach a decision by the end of the month. It announced a review of the business last year.
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4ad81fcc68182abfc058661bb3e56d0d | https://www.cnbc.com/2018/04/03/shares-of-cryptocurrency-play-longfin-drop-more-than-20-percent-after-disclosing-sec-investigation.html | Shares of cryptocurrency play Longfin drop 30% after disclosing SEC investigation | Shares of cryptocurrency play Longfin drop 30% after disclosing SEC investigation
A flag waves in front of the headquarters of the Securities and Exchange Commission in Washington, D.C.Dennis Brack | Bloomberg | Getty Images
The U.S. Securities and Exchange Commission is investigating trading activity in shares of Longfin, a tiny stock that surged astronomically in December after the firm announced a cryptocurrency-related acquisition, the company disclosed late Monday.
Longfin shares, which go by the ticker symbol LFIN, plunged 30.89 percent to $9.89 a share. The stock is now down 82.43 percent for the year so far.
The Division of Enforcement of the SEC informed Longfin on March 5 that the agency is investigating trading in the company's shares and requested documents related to its IPO and acquisition of Ziddu.com, according to a required 10-K filing.
"We are in the process of responding to this document request and will cooperate with the SEC in connection with its investigation," Longfin said in the filing. Many law firms have also announced investigations into the trading activity, the document said.
The tiny, little known stock had soared more than 1,000 percent in two days after the company announced in mid-December it was buying Ziddu, which says it's a microlending company using the same blockchain technology as bitcoin.
Longfin agreed to buy the microlending company from a private Singapore firm called Meridian Enterprises, which a filing showed is 95-percent-owned by Longfin CEO Venkat Meenavalli.
On Dec. 18, the day Longfin hit its record high of $142.82, Meenavalli said on CNBC's "Fast Money" that the several billion-dollar "market cap is not justified" and "is not a reality."
The stock dropped sharply last week after a negative tweet from noted short-seller Andrew Left's Citron Research, and news that FTSE Russell was removing Longfin from its benchmark Russell indexes due to insufficient free-floating shares.
"We are reapplying" for inclusion in the indexes, Meenavalli told CNBC in a phone interview last Tuesday. He said the stock's free float has increased above the minimum 5 percent as of March 11 due to the expiration of a lockup period on a consultant's stock holdings.
As for Citron's negative view, "we are going to take legal action after we file the 10-K," Meenavalli said last week. "The company is a profitable company, making revenue."
In Monday's 10-K filing, Longfin reported a net loss of nearly $26.4 million from its inception on Feb. 1, 2017, to Dec. 31, 2017.
When contacted by CNBC, Longfin would not elaborate on the SEC investigation and said that free float as of March 31 was 7.11 percent. The SEC declined to comment.
VIDEO11:3011:30Small-cap Longfin soars 2,000% after acquiring blockchain companyFast Money
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36f58a7fdc39f65df46a773180eaef56 | https://www.cnbc.com/2018/04/03/trump-congress-dont-expect-big-legislation-in-2018.html | Trump keeps calling for major legislation, but Congress isn't listening – especially with midterms coming | Trump keeps calling for major legislation, but Congress isn't listening – especially with midterms coming
President Donald Trump addresses a news conference in the East Room of the White House in Washington, DC.Kevin Lamarque | Reuters
President Donald Trump ramped up his rhetoric on a slew of policy goals this week — but with the 2018 midterms fast approaching, his legislative hopes for this year are receding.
In campaign-style rallies and on social media, Trump has called on Congress to pass a largely state-funded infrastructure spending bill, sweeping immigration reforms and a "phase two" of his tax overhaul law, among other proposals.
The president's exhortations are falling on deaf ears in Congress, however. For one, lawmakers have been away on recess as Trump delivered his most recent calls to action.
While they're out of town, many members of Congress are likely engrossed in preparations for their midterm election campaigns. Historically, that means controversial bills get pushed to the side, according to Mark Peterson, a professor of public policy at UCLA's Luskin School of Public Affairs. And in such a polarizing climate, nearly every major bill is destined to become mired in controversy.
VIDEO0:4400:44Pentagon 'has no legal authority' to fund Trump's wall, senators tell Defense Secretary MattisNews Videos
In this political environment, "it's very hard to orchestrate the kind of bipartisan coalitions that one could imagine forming even in an election year," Peterson told CNBC.
To force bills through the Senate, Trump called on Republicans to end the 60-vote cloture rule in order to bypass Democrats with simple 51-vote majorities. But the Republican conference, led by Senate Majority Leader Mitch McConnell, R-Ky., has been steadfast in opposing the change, which could end up backfiring on Republicans when they eventually become the minority party in the Senate.
Trump has changed his political focus frequently, making it difficult for congressional Republicans to buckle down on any single goal. For instance, the White House has maintained that Trump will next try to usher in a national infrastructure overhaul following the success of the Tax Cuts and Jobs Act, which was signed into law in December. That tax overhaul is the GOP's signature legislative achievement of Trump's time in office so far.
VIDEO4:2404:24We are preparing for the military to secure our border: TrumpPower Lunch
But the president spent most of the weekend the past couple days tweeting about illegal immigration and his desire for a wall on America's southern border with Mexico. Congress may have little stomach for tackling that long-term policy goal after recent, divisive policy failures.
TRUMP TWEET
"There's nothing that is actively being negotiated, or there's nothing that has a chance of passage" on immigration, said Sarah Pierce, a policy analyst at the Migration Policy Institute, a nonprofit think tank in Washington.
The White House did not immediately respond to CNBC's request for comment.
The Deferred Action for Childhood Arrivals program, or DACA, which Trump tried to end to force bipartisan congressional action to codify it, was all but abandoned after a bevy of immigration reform packages failed in the Senate in February. The administration railed against the most moderate plan.
A Trump-backed plan, which paired protections for young immigrants with new restrictions on legal immigration, secured fewer votes than any of the alternatives. Meanwhile, courts have stalled Trump's attempt to end DACA, so the program remains in place.
While the nation debates reforming gun regulations in the wake of the February shooting massacre in Parkland, Florida, Trump confused lawmakers as well as his base when he suggested in a televised meeting that authorities should "take the guns first, go through due process second" when responding to calls about potentially dangerous people.
His administration recently moved forward with an executive order effectively banning so-called bump stocks — modifications that allow rifles to fire continuously — in response to the October 2017 massacre in Las Vegas. But the White House's broader gun-reform proposals have been met with much less bipartisan enthusiasm.
Congress has taken some action on guns. A provision to strengthen background checks when purchasing guns did make it into the latest omnibus spending bill, which Trump begrudgingly signed last month. But Trump threatened to veto the $1.3 trillion bill before signing it and soon after said he "will never sign a bill like this again." His main objection to the bill related to what he called insufficient border security funding.
UCLA's Peterson said the spending bill may be the last major piece of legislation enacted in 2018, although "it depends on how one defines major."
Deficit spending has become a political punching bag in Washington. But Trump's signature legislative achievement in 2017, his tax-cut bill, is projected to expand the deficit by more than $1 trillion over the next decade.
President Donald Trump (L) shares a moment with Chairman of House Ways and Means Committee Rep. Kevin Brady (R-TX) (4th L) as Vice President Mike Pence (2nd L), Rep. Don Young (R-AK) (3rd L) and Speaker of the House Rep. Paul Ryan (R-WI) (R) look on during an event to celebrate Congress passing the Tax Cuts and Jobs Act with Republican members of the House and Senate on the South Lawn of the White House December 20, 2017 in Washington, DC.Getty Images
The awkward political strategy of attacking the deficit while pushing for policies that are likely to increase it could sink the fabled "phase two" of tax reform Trump has recently teased. Rep. Kevin Brady, R-Texas, who is chairman of the tax-writing House Ways and Means Committee, has also discussed a possible second round of tax cuts.
The next wave of tax reform could include making individual tax cuts permanent or indexing capital gains for inflation, CNBC reported in March. Pursuing more tax cuts in 2018 could put pressure on Democrats, who lamented that only corporate cuts were made permanent in the December law. But it would also heighten concerns about deficit spending, potentially giving Democrats a new avenue to attack vulnerable Republicans in the midterms.
Republicans could use the promise of additional tax cuts as largely a political play ahead of the midterms.
The administration has hinted at other measures that could be put forward in 2018. In January, for example, Agriculture Secretary Sonny Perdue released the USDA's legislative goals for a bill to replace the existing farm law, which is set to expire on Sept. 30.
The goals include strengthening a safety net for farmers in times of economic slowdown and offering new forms of crop insurance. Both ideas are popular among farmers, who generally seek to mitigate the economic risks inherent to their industry.
But House Agriculture Committee Chairman Mike Conaway, R-Texas, has waded into politically dangerous waters by discussing reforms to the Supplemental Nutrition Assistance Program, or SNAP. The welfare program has created legislative bottlenecks for past farm bills, and Senate Agriculture Committee leaders have already signaled their opposition to SNAP reforms this time around.
Rep. Mike Conaway (R-TX).Getty Images
Conaway "certainly expects some pushback" on SNAP, said Rachel Millard, the House Agriculture Committee's communications director. She also noted that the committee majority is "not obtuse to the fact that there are elections that are going to happen" in November.
"But at the end of the day, there are a lot of good things to take home here," Millard said.
Some experts aren't convinced that the measure will move, not with midterms on the way. The upcoming elections exacerbate the whole process, said Jonathan Coppess, the University of Illinois' agriculture policy program director and former aide to the Senate Agriculture Committee.
"They make it much more difficult" by truncating a process that is designed to be slow and deliberative, Coppess said. Midterms also inevitably "heighten the partisan atmosphere," he said.
While the Senate version of the farm bill is currently in the drafting process, Axios reported Monday, citing sources, that the bill could be endangered.
The most substantive change Trump has brought to Washington so far may not involve legislation at all. The Trump administration appointed nearly two dozen judges to lifetime posts in 2017, including a Supreme Court justice and 12 U.S. Court of Appeals judges.
More nominations to district and circuit seats are coming down the pike in 2018. Even if the Trump administration's short-term legislative prospects look thin, it could be laying the foundation for long-term Republican political dominance through the judicial branch.
— CNBC's Jacob Pramuk contributed to this report.
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7c84ff8c5dd621d0db9f5882e76d7976 | https://www.cnbc.com/2018/04/04/controversial-crypto-stock-longfin-surges-then-halted-after-its-announced-ceo-to-appear-on-cnbcs-fast-money.html | CEO of controversial crypto company Longfin blames short sellers for stock plunge | CEO of controversial crypto company Longfin blames short sellers for stock plunge
VIDEO11:3411:34Longfin CEO speaks out on SEC investigationFast Money
The head of a small company that has attracted controversy over its ties to cryptocurrency said that he is not going to sell his shares while he is fighting $1.4 billion in bets against the stock.
"I'm not going to sell [for] the next three years," Longfin CEO and Chairman Venkat Meenavalli said Wednesday on CNBC's "Fast Money." "I'm standing on [sic] my statement."
Shares of Longfin (Ticker: LFIN) briefly fell more than 5 percent in extended trading Wednesday following Meenavalli's comments. The stock has fallen more than 90 percent from an all-time high hit in December, and volatility has picked up in the last two weeks following several negative headlines, including a tweet from noted short-seller Andrew Left's Citron Research.
"I don't deserve a $5 billion valuation, a $10 billion valuation. Let the Street decide its valuation," the CEO also said. Longfin's market value was $865 million as of the close Wednesday.
Short sellers look to profit on a decline in prices by borrowing and then selling shares in expectation they can buy them back cheaper later. About 14.6 percent of Longfin's shares available for trading are sold short, according to FactSet.
"I'm going to write to SEC and FINRA because of the shorts," Meenavalli said, referring to two major U.S. financial regulators.
"We got information, we have a special investigation. ... According to us there are 28 billion shares shorted of $1.4 billion dollars bet against me," he said. "The guys are going to destroy us. I'm fighting here."
The company's investor relations representative later said Meenavalli meant to say "28 million."
Ahead of the show, Longfin shares had closed nearly 17.4 percent higher at $11.61 a share. Trading was briefly halted for a volatility circuit-breaker in the afternoon following CNBC's announcement that Meenavalli was set to appear on "Fast Money" later that day.
The stock is still down more than 30 percent this week. The company disclosed late Monday in an 10-K filing the SEC's Division of Enforcement is investigating trading in the Longfin's shares and has requested documents related to its IPO and acquisition of Ziddu.com, which says it's a microlending company using the same blockchain technology as bitcoin.
The tiny, little known stock first caught Wall Street's attention in mid-December. Shares soared well over 1,000 percent in two days after Longfin announced it was buying Ziddu. A filing showed the microlending company was purchased from a private Singapore firm called Meridian Enterprises that is 95 percent owned by Longfin CEO Meenavalli.
Shares at one point in December had a market value north of $3 billion. That "market cap is not justified" and "is not a reality," Meenavalli said the day it hit that valuation in December on CNBC's "Fast Money."
Last week, shares dropped 75.7 percent after the Citron tweet and news that FTSE Russell was removing Longfin from its benchmark Russell indexes due to insufficient free-floating shares. Meenavalli told CNBC in a phone interview last week the company is "reapplying" for inclusion in the indexes and it would "take legal action" against Citron after filing its 10-K.
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1d08bc7c707dbcb34087ac9b4ae277dc | https://www.cnbc.com/2018/04/04/gold-markets-fears-of-all-out-us-china-trade-war-ease.html | Gold prices fall as US-China trade tensions ease | Gold prices fall as US-China trade tensions ease
AP
Gold prices fell on Thursday after the United States and China signalled willingness to resolve a trade dispute through negotiations, reducing demand for bullion as a perceived safe place to park money.
Spot gold was down 0.53 percent at $1,325.85 an ounce at 3:06 p.m. EST. U.S. gold futures for June delivery settled 0.9 percent lower at $1,328.50 an ounce.
Investors moved back into equities, sending global stock markets higher, while the dollar strengthened, making gold more expensive for users of other currencies.
"It's been a double whammy (for gold)," said Fawad Razaqzada, an analyst at FOREX.com. "Stock markets have stabilized, at least for the time being, and that has reduced demand for safe havens." The slide in gold prices had also created a negative technical picture that encouraged further selling, Razaqzada said.
Gold had surged to $1,348.06 on Wednesday after Beijing threatened to retaliate against proposed U.S. tariffs on Chinese imports worth around $50 billion with its own duties on U.S. products including soybeans, planes, cars, whiskey and chemicals. Both Washington and Beijing later said they were willing to negotiate a resolution.
President Donald Trump's top economic adviser called the announcements by the two countries mere opening proposals and suggested the U.S. tariffs may never go into effect, while China's ambassador in Washington said Beijing's preference was to resolve the dispute through talks.
Technical support for gold was now around $1,320 and the 100-day moving average at $1,311, said MKS trader Sam Laughlin.
Gold prices reached an 18-month high of $1,366,07 in January but have since then been locked in a trading range between around $1,310 and $1,360. Investors were looking to U.S. jobs data on Friday to give new direction to prices.
Strong employment and wage growth would encourage the Federal Reserve to raise U.S. interest rates more aggressively and push gold prices lower.
Gold is sensitive to rising rates because they push up bond yields, reducing the attractiveness of non-yielding bullion, and tend to boost the dollar, in which gold is priced.
Trading volumes were likely to be lower however with markets in mainland China, the world's largest gold consumer, closed on Thursday and Friday for the Tomb Sweeping Day holiday.
In other precious metals, spot silver was up 0.73 percent at $16.39 an ounce. Platinum was 0.44 percent lower at $907.99 an ounce after touching $901.50, its lowest since December. Palladium sunk 2.44 percent at $901.97 an ounce after hitting a new six-month low at $907.22.
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a7b959022a5875a5b91159906cc4da87 | https://www.cnbc.com/2018/04/04/the-energy-industry-will-likely-emerge-from-any-trade-war-with-china-unscathed.html | The energy industry will likely emerge from any trade war with China unscathed | The energy industry will likely emerge from any trade war with China unscathed
The tanker Maria sails out of the Port of Corpus Christi after discharging crude oil at the Citgo refinery in Corpus Christi, Texas.Eddie Seal | Bloomberg | Getty Images
As the U.S. and China do battle over trade, there's one sector that has been largely left out of the tit-for-tat for now — and that's energy.
The U.S. has plenty, and China wants more. China laid claim to 20 percent of U.S. oil exports last year and importantly, as the fastest growing importer of liquified natural gas in the world, it is a ready importer of U.S. LNG.
In fact, if not for the boom in U.S. energy production over the last decade, the U.S. trade deficit would have been larger by as much as $400 billion or more.
"The best way in my view to cut the trade deficit is to increase exports...whether it's LNG or cars or aluminum or whatever," said U.S. Commerce Secretary Wilbur Ross, in a recent interview with CNBC.com.
On a pure dollar basis, the deficit in petroleum and related products has shrunk to $46 billion in the fourth quarter of last year, just about a tenth of the peak deficit of $451.9 billion in the third quarter of 2008, according to Mark Zandi, chief economist at Moody's Analytics.
While the figures don't break out the fluctuation in oil prices, they do underscore the fact that the U.S. oil and gas sectors have boomed — using new technologies to find and drill oil and gas at a pace that should someday make the U.S. not only the largest gas producer but the largest oil producer in the world.
"If you look at the trade deficit, it's basically unchanged, but if you look underneath, there's been this dramatic decline in the petroleum trade deficit," said Zandi. "If the trade deficit in petroleum and products remained unchanged at their 2007 level, GDP would be 1.1 percent lower today."
Service sector growth has also been substantial, but no goods producers compare to the gains made by energy in holding down the trade deficit.
"It may be the single most important event of the last decade, not only on economic levels, but political levels," said Zandi of U.S. energy sector growth. "It's such an amazing story of the success of the market and technology. Here we thought 10 years ago we were going to be beholden to the rest of the world for oil and all the risks that poses and now we're in a very different place."
The U.S. oil sector last week produced a record 10.5 million barrels a day, and exported an all-time high of 2.2 million barrels a day of crude, according to the Energy Information Administration.
In 2008, monthly government data shows the U.S. produced at most 5.2 million barrels a day and would have exported very little under laws that then barred most exports. The U.S. has been exporting refined products — gasoline, jet fuel and diesel — for years. With changes in laws governing crude, the U.S. has been exporting more and more.
The U.S. EIA predicts the U.S. will become a net energy exporter by 2022.
"With the advent of shale, there's a whole new ball game going on in global energy. China last year imported 8.4 million barrels a day of oil. We were down to 7.8 and we're heading south from there. So that's a good thing," said Secretary Ross.
"Our oil trade has been a huge source of our trade deficit. Not that you could blame anyone for it, but think about it. … If you multiply 8.4 million by $60, we had more than $480 million a day going out the door. Multiply that by 365, and you get a pretty big number," Ross said.
Asked why energy isn't included in tariffs, Ross said energy is a topic that is discussed a great deal on the trade front.
"We're discussing it all the time. You saw the number of LNG deals we got with China from that trade mission I led back in November. It's huge and immense," he said.
China imported 26.1 million tons of LNG in 2016. The first ever long term contract between a Chinese state owned company and a U.S. LNG producer was signed by China National Petroleum Corporation this winter for 1.2 million tons per year from Cheniere's Sabine Pass export terminal.
The Chinese tariffs did not include oil, natural gas, or gasoline or diesel fuel, but they did include petrochemicals and propane, which could cause pain for those producers if the tariffs are imposed. The U.S. exported 1.4 million barrels a day of propane and propylene last week.
As for U.S. oil, China is also a ready customer for the burgeoning U.S. crude export business. It has also overtaken the U.S. as the world's largest oil importer.
"China imported over 81 million barrels of crude oil from the USA in 2017 (about 220,000 barrels per day) which represented 20% of our crude oil exports. They are the second largest importer for USA crude oil, behind Canada which imported 323,000 barrels per day," wrote Andrew Lipow, president of Lipow Oil Associates.
The U.S. increased exports of crude starting in 2016, after a 40-year ban on most exports was lifted. Crude exports had been permitted to Canada, and Canada is the largest source of U.S. oil imports.
"You'll probably see these exports continue at these very high levels because the difference in price between light sweet crude on the Gulf Coast compared to the rest of the world is encouraging record amounts of exports," said Lipow, in a phone interview. "From a political standpoint, every VLCC [super tanker] that carries 2 million barrels of crude oil lowers our trade deficit to China by over $120 million."
Besides oil, the U.S. exported 1.2 million barrels a day of diesel and other distillates, and 966,000 barrels a day of gasoline last week.
— CNBC's Steve Liesman contributed to this article.
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cc9c47040cf1f979c7278337bc3d1c1c | https://www.cnbc.com/2018/04/04/uneasiness-spreads-in-farm-economy-with-china-targeting-us-soybeans.html | Fear of 'disastrous situation' in farm economy as China targets huge US soybean business | Fear of 'disastrous situation' in farm economy as China targets huge US soybean business
VIDEO2:4602:46Why China's tariff on US soybeans is a political, not economic, moveSquawk Box Asia
Fears of an expanded trade war with China are spreading across the farm economy after Beijing announced it might slap a 25 percent tariff on American soybeans and other farm products.
Affected agricultural products also include U.S. corn, beef, cotton, tobacco, sorghum and orange juice. However, China's Ministry of Commerce is targeting not only U.S. agriculture but other items such as automobiles on its wide-ranging list of more than 100 American products.
The move by Beijing on Wednesday came a day after the Trump administration proposed duties on more than 1,300 imported products in China's machinery, electronics, aerospace and robotics sectors.
"It's frustrating because agriculture has long been just a pawn in these trade wars," said Mark Kenney, who grows soybeans in central Iowa. "I'm concerned about it because China is a huge market for us."
The U.S. exports about $14 billion worth of soybeans to China, according to the U.S. Department of Agriculture. China buys roughly half of the U.S. soybean exports, and roughly one in three rows of soybeans grown on the nation's farms goes to the world's second-largest economy, according to the American Soybean Association.
Overall, U.S. agricultural exports to China represent almost $20 billion annually for American farmers.
"They are hitting soybeans, wheat, corn and cotton — so all the agricultural products — and this is in addition to what they announced already on pork and sorghum," said Wendong Zhang, assistant professor of economics at Iowa State University. "So essentially if this becomes a reality two months later, this will be a disastrous situation for U.S. agriculture."
China's planned tariffs on U.S. agriculture come as the nation's heartland already is struggling after years of low crop prices. Some farmers are considering exiting the business. In February, the USDA predicted net farm income in 2018 would fall to lowest level in nominal terms since 2006.
The lion's share of the U.S. agribusiness trade to China involves soybeans, which are grown in many Midwestern farm states where President Donald Trump received strong support during the 2016 presidential election.
Soybeans are harvested Princeton, Illinois.Daniel Acker | Bloomberg | Getty Images
"The Chinese are very clever here," Keith Bliss, a trader for the brokerage firm Cuttone & Co., said on CNBC's "Closing Bell." "They knew that they were going to hit right to the heart of Trump's base of support in the Midwest."
"I'm sure the White House got dozens of calls from soybean farmers this morning when they saw that news cross the tape," he added. "And it's going to get both parties to the table. And that's precisely what the Chinese wanted to accomplish that."
To be clear, some farmers support Trump's strategy to hold China accountable on trade issues due to national security concerns but also worry about unintended consequences and the long-term impact it might have on access to China, a lucrative market with a growing middle class that is demanding more food.
At the same time, it creates a situation where global agriculture sellers such as the European Union and South America could take share away from the United States in key agricultural commodities sold to China.
"Our corn farmers have worked for decades to support fair and open trade practices because we understand that trade is a two-way street," said Texas farmer Wesley Spurlock, chairman of the National Corn Growers Association.
Experts point out that the White House has time to decide before the new round of tariffs on some 1,300 Chinese goods — or about $50 billion worth of products — goes into effect since there will be a 30-day comment period for business interests and other parties. Also, that will be followed by up to 180 days for the president to decide before taking the next step to formalize the duties against the Chinese.
In early March, Trump unveiled a 25 percent duty on steel imports and 10 percent charge on aluminum imports, essentially targeting suppliers such as China. That ultimately led to China's Finance Ministry on Sunday to unveil retaliatory tariffs on up to 128 kinds of U.S. goods, including pork and fruit.
One in 4 hogs in the U.S. is sold overseas, and the Chinese are the world's top consumers of pork. At about $1.1 billion, mainland China and Hong Kong together are the third-largest market for U.S. pork based on value. Last year, China was the second-largest volume market for the American pork industry after Mexico.
"There is scope for negotiation going forward," said Dan Ikenson, director of trade policy studies at the Cato Institute, a libertarian think tank. "Maybe it's easier to negotiate if you have on the table your big guns as well. This will certainly encourage the auto industry and soy farmers and Boeing to hang out in Washington and speak to policymakers until this is resolved."
Reaction to the China trade threat was swift in the futures markets with Chicago soybeans for May delivery falling as much as 5 percent during Wednesday's session to a two-month low before settling down just over 2 percent to $10.167 per bushel.
Top soybean growing states include Iowa, Illinois, Minnesota, Nebraska, Indiana, Missouri, Ohio and the Dakotas.
Other commodities targeted by China's threat Wednesday were also lower: Chicago corn for delivery in May fell more than 2 percent to $3.805 a bushel and New York cotton futures for May sank more than 3 percent to 79.55 cents per pound.
"We expected a bumpy ride on the soybean side," South Dakota soybean farmer Kevin Scott told CNBC's "Power Lunch" on Wednesday. "Traders love a lot of volatility, but for farmers, it gives us a lot of heartburn."
Getty Images
Scott said the soybean market declines earlier in the session translated into essentially a $1.7 billion decline in value for the U.S. soybean crop and for him personally a haircut potentially in the tens of thousands of dollars.
Traders expect more volatility in the coming weeks — not only from soybeans but other agricultural commodities that China has targeted in the tit-for-tat trade action. They also note that China can get soybeans from Argentina and Brazil, two major growers and exporters, but still will likely need to rely on some American beans for the foreseeable future.
"China can't cut out completely from their import program [for soybeans]," said Ted Seifried, chief market strategist at Zaner Group, a Chicago-based futures brokerage. "But even if they were to drop 10 percent of what we're sending to them — and favor South America as much as they can — it would still have a huge impact on our balance."
Most of the soybeans shipped to China are used for soy protein to feed roughly 700 million pigs in the country or to make cooking oil. The Chinese also grow some of their own soybeans, mostly for human consumption, but that crop represents less than half the amount purchased from the U.S.
The U.S. sold approximately 33 million tons of soybeans in 2017 to China, or just over one-third of the beans imported by the Asian country. By comparison, Brazil shipped more than 50 million tons of soybeans last year to China and represented nearly 55 percent of the total imports. Argentina has been struggling with a drought and is expected to have a smaller crop for export this season.
China's announcement also concerns other agricultural commodities, particularly wheat, frozen beef and cotton.
"It is unsettling to see American-produced beef listed as a target for retaliation," said Kent Bacus, director of international trade and market access for the National Cattlemen's Beef Association. "This is a battle between two governments, and the unfortunate casualties will be America's cattlemen and women and our consumers in China."
Bacus added that the cattle association backs "trade enforcement, but endless retaliation is not a good path forward for either side."
China took delivery just last year of the first shipments of American beef in 14 years. China had shut its market to American beef producers after a case of so-called mad cow disease was detected in the U.S. in late 2003.
As for wheat, the industry is also worried about the impact of the escalating trade dispute.
"This will definitely be a big hit to the U.S. wheat market," said Chandler Goule, CEO of the National Association of Wheat Growers. "Putting a 25 percent tariff on all U.S. wheat going into China is going to significantly reduce our availability to that market."
The U.S. wheat industry last year sold 61 million bushels of the commodity to China, or about $450 million worth of the product. China ranks as the fourth-largest buyer of American wheat and about 7 percent of total U.S. exports of the grain.
Cotton growers, too, expressed concern about China's threat to impose a 25 percent tariff. China is the second-largest export market for U.S. cotton. "I cannot overstate the importance of China's market to U.S. cotton farmers and the importance of U.S. cotton in meeting the needs of China's textile industry," said Ron Craft, chairman of the National Cotton Council.
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f3940d0e11bd95220db7d30f4dc9cbfe | https://www.cnbc.com/2018/04/05/chinas-1-point-2-trillion-weapon-that-could-be-used-in-a-us-trade-war.html | China's $1.2 trillion weapon that could be used in a trade war with the US | China's $1.2 trillion weapon that could be used in a trade war with the US
Presidents Donald Trump and Xi Jinping.Getty Images
As the United States and China inch closer to a full-fledged trade war, economists and investors worry about worst-case scenarios that could impact the global economy — and America. The war of words keeps getting harsher. China announced Wednesday that it may put tariffs on $50 billion worth of U.S. goods in retaliation against the Trump administration's plan for imposing 25 percent duties on Chinese imports. Markets were sent spinning, falling by more than 1 percent and then rebounding later in the day, while everyone is now wondering what might come next.
In response, President Donald Trump on Thursday said he has instructed the United States Trade Representative to consider $100 billion in additional tariffs against China. Market watchers are now bracing for another wide ride in the stock market on Friday.
If this trade fight does escalate, then more tariffs could be slapped on more goods. But China could fire back in a far more significant way: selling a large chunk of the $1.17 trillion of U.S. treasury bonds it holds.
Over the last several years, China has bought scores of treasury bonds partly because it has U.S. dollars it needs to spend. Just like any investor, China wants to put some of the greenbacks it's made off its exports to the United States into safe investments, and there's nothing safer than U.S. bonds.
For the most part, China, which has owned around $1 trillion of U.S. bonds for several years, has held on to these assets, collecting billions in interest payments. It did reduce some of those assets in late 2016 and early 2017 to help offset an increase in the yuan, but it's already bought back much of what it sold.
More from Global Investing Hot Spots:Tesla and China trade warReaching for yield in this bond sector may be risky
If China did decide to sell off those bonds in a fit of rage aimed at President Donald Trump, then it could cause major havoc on international markets, said Jeff Mills, co-chief investment strategist at PNC Financial Services Group. "It's certainly something they could do," he said.
The biggest impact would be on interest rates and bond prices, he says. If China floods the market with treasuries, and the supply of U.S. bonds spikes, then fixed income prices would fall and yields would rise. If yields climb then it would become more expensive for U.S. companies and consumers to borrow and that would cause the U.S. economy to slow down.
VIDEO5:3505:35Why a US-China trade war makes America vulnerable: ExpertPower Lunch
It will also become more expensive for the U.S. government to issue debt — they'll have to pay higher rates to borrowers — while the $15 trillion of treasuries held by itself and investors would fall in value. Equities would be sent crashing, too, as yields climb. "Higher interest rates would ripple through the entire economy," says Mills. "It would have a slowing effect."
China holds about 20 percent of U.S. debt held by foreign countries, which is a lot, but it only accounts for about 5 percent of outstanding debt overall. Other holders include other countries – Japan owns about $1 trillion in treasuries – the U.S. government, corporations and investors. However, if China does decide to dump treasuries, it could make others panic and sell as well, says Vincent Reinhart chief economist and macro strategist at BNY Mellon.
President Xi Jinping would have to be mighty angry to dump treasuries in droves, because a sell off would have a negative impact on its own financial affairs. "It's like holding a gun to your own head and saying I have a hostage," says Reinhart.
If China were to sell its bond holdings, it would likely have to sell it at least some of the treasuries it purchased at a loss. If other countries sold, too, and prices plummet then it could lose billions. "It will inflict capital losses on itself," says Reinhart.
The U.S. dollar would also fall, which would then make this trade-related provocation somewhat moot, adds Mark Zandi, chief economist at Moody's Analytics. A lower greenback would make U.S. exports more attractive, which would then hurt China's own export market. "It would negate some of the impact," he says. "Rates might spike, but the dollar would fall and what's the net impact of that? It doesn't feel like it's a winning strategy."
As well, it's not certain that selling treasuries would have much of an impact, says Mills. If other countries step into buy those treasuries, then interest rates could remain stable.
As of right now, U.S. bonds are still seen as a safe asset that people and countries buy when the global economy goes awry. If that stays the case then there's no reason why demand wouldn't materialize.
"It's not like demand for U.S. Treasurys has broadly fallen," said Mills. "I would think that if they did start to sell, there would be a fair bit of demand from other countries and U.S. companies, especially as rates slowly increase, which makes them more attractive holdings."
China could take a more measured approach, said Reinhart, and not buy new bonds as old ones mature. With the United States also reducing its quantitative easing-related bond purchases, supply would then slowly rise and potentially push rates to more extreme levels.
However, Zandi thinks China can show its displeasure in other ways. It could devalue its own currency, which would then make exports even more attractive and increase the trade deficit that Trump has railed against. That would certainly anger Trump, he said, and create turmoil in financial markets. "It would inflict some real pain," he added.
They could also make it more difficult for U.S. workers to get visas or even take over offices based in the country. "You have operations here? Too bad; they're ours now," he said. "They can make life very difficult for someone trying to do business in China."
The hope is that all of this will die down before any drastic measures are taken. Of course, no one can know for sure how these two global powerhouses will react going forward — we're in uncharted territory. Reinhart thinks the United States ultimately won't do anything to damage its own economy, while Mills said that China, with its massive manufacturing employment base, needs America more than American needs them.
Zandi says that while we could see more back-and-forth arguing, responses will be proportional. In any case, all of this is troubling no matter what happens next. "This is not going to end in a place that's any better for anybody," he said. "Maybe everyone will save face, but no good will come out of this."
— By Bryan Borzykowski, special to CNBC.com
VIDEO2:0802:08China’s Treasury threat ‘negotiation’ tactic, says CNBC’s Rick SantelliHalftime Report
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ffe7803707cb09ecb6137d7139c69ae8 | https://www.cnbc.com/2018/04/05/cramer-spotify-is-the-anti-ipo-in-the-league-of-netflix-and-amazon.html | VIDEO1:0501:05Spotify, the 'anti-IPO' joins the ranks of Netflix and AmazonMad Money with Jim Cramer
Spotify Technology's no-frills direct listing on Tuesday had little bearing on the music streaming service's explosive growth potential, CNBC's Jim Cramer said Thursday.
"What Netflix is to video, Spotify is to audio," the "Mad Money" host said. "And Spotify believes that the streaming market is still in its infancy."
Spotify's direct listing differed from a standard initial public offering in that the company only sold existing shares instead of issuing new ones and had minimal contact with investment banks, which typically underwrite IPOs.
As co-founder and CEO Daniel Ek said in an online post the night before the listing, "what's ... important to me is that tomorrow does NOT become the most important day for Spotify."
"He wasn't desperately trying to raise capital, he was trying to do right by his employees," Cramer said. "In every respect that matters, this was the anti-IPO."
The largest music streaming service in the world, Spotify has 159 million monthly active users, 71 million of whom are paid subscribers — nearly double Apple's 40 million paid subscribers. Users can listen to Spotify's millions of songs for free, but with occasional advertisements, or pay $9.99 a month for unlimited, ad-free streaming.
Spotify's user numbers have also been growing rapidly: in 2017, monthly users increased by 29 percent versus 2016, and the number of premium subscribers rose by 46 percent.
Cramer's excitement about Spotify ties back to its disruptive business model. Before Spotify was created, online piracy had all but eroded the recorded music business, which had been in decline for 15 years.
"After Spotify's subscription-based business model started gaining traction, the industry started growing again, and that's not a coincidence," the "Mad Money" host said. "People who aren't going to shell out $10 for an album on iTunes will gladly pay $10 a month for access to tens of millions of songs."
Spotify has now captured approximately 42 percent of global market share. Even so, Cramer sees a huge potential growth runway — 3.6 billion people worldwide have internet access.
"The essence of this story is that Spotify's going to keep expanding in the markets where it's already operating while also moving aggressively into new regions," Cramer said. "They are gradually taking over the world, people, and if even Apple can't catch up to them, it's hard to imagine anyone else getting in their way."
As for the numbers, Spotify is growing its revenue and its margins, inching closer to profitability. Its free cash flow is positive and its balance sheet is tight, with $1.5 billion in cash and no debt.
"Beyond the stellar numbers, what really intrigues me is the fact that Spotify is one of the few services that people don't mind paying for — in fact, they tend not to even think about paying for it, just like Netflix or Amazon Prime or Sirius XM or Apple Storage," Cramer said. "That's a great position to be in."
And even though shares of Spotify seemed to have a rocky first day of trading, Cramer wasn't bothered by the declines, noting that it was the kind of stock that gets cheaper as it sinks.
A $143.99 stock as of Thursday's closing bell, Spotify trades at 4.2 times this year's revenue estimates, much cheaper than Netflix, which has a similar growth forecast and trades at 8.1 times sales.
"Here's the bottom line: Spotify belongs to an elite club of companies where you don't even think about paying the bill every month, its growth is phenomenal and I bet growth-oriented money managers would be willing to pay a lot more for its stock," the "Mad Money" host said. "I think you can pick at it here, then buy a lot more into additional weakness."
VIDEO10:5410:54Cramer talks Spotify, the 'anti-IPO' joining the ranks of Netflix and AmazonMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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b7bd25aac7ab33e9d1c408388f327ef3 | https://www.cnbc.com/2018/04/05/gold-markets-focus-on-trade-after-trump-proposes-more-tariffs-on-china.html | Gold rises as dollar, equities fall on trade fears, US data | Gold rises as dollar, equities fall on trade fears, US data
Getty Images
Gold prices rose on Friday, as Wall Street stocks tumbled and the dollar fell as rhetoric from U.S. President Donald Trump and Chinese officials fed worries about a possible trade war, and after U.S. jobs data came in weaker than expected.
Spot gold was up 0.62 percent at $1,336.8 an ounce by 3:24 p.m. EST. In early trade, it fell to a session low of $1,321.16, the lowest since March 21. U.S. gold futures for June delivery settled up 0.62 percent at $1,336.8.
U.S. stocks fell, with the Dow down more than 450 points, after Trump on Thursday threatened to slap $100 billion more in tariffs on Chinese imports, and Beijing pledged a "fierce counter strike." Falling stock prices dragged the dollar against the yen and the euro. Also pressuring the U.S. currency was data showing the U.S. economy in March created the fewest jobs in six months, which might prompt the Federal Reserve to go more slowly on plans to raise interest rates.
Gold has fluctuated as investors rated prospects of a U.S.-China trade war. "We are moving back to a risk-off scenario today, but still stuck in a trading range between $1,300 and $1,360," said Rob Haworth, senior investment strategist for U.S. Bank Wealth Management. "The market is paying very much attention to the dollar and bond market in terms of what the Fed is going to do."
"The payrolls report has provided a small boost to gold, but overall it's had quite a dismal week," Saxo Bank's head of commodity strategy Ole Hansen said.
Silver was up 0.14 percent at $16.37 an ounce, and on track to close up 0.2 percent for the week. Platinum was up 0.57 percent at $915.20 an ounce.
Palladium fell for the 11th straight session and was down 0.43 percent at $901.40 an ounce, after falling to $895.47, the lowest since August 2017. It was on track to end the week down 5.3 percent.
"Last year's uptrend has reversed and palladium prices are down more than 20 percent from their January high," Julius Baer said in a note. "We see them better aligned with a softer global car market and shift our view to neutral."
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5935d4cf1b85420798b687422f8d472a | https://www.cnbc.com/2018/04/05/major-disconnect-between-tesla-shares-and-bonds-signals-problems.html | A major disconnect between Tesla shares and bonds is signaling problems for the stock, says market watcher | A major disconnect between Tesla shares and bonds is signaling problems for the stock, says market watcher
VIDEO1:3001:30In the ‘disconnect’ between Tesla’s shares and bonds, only one can be correct, strategist saysTrading Nation
Following Tesla's tanking junk bond late last week, one macro strategist is pointing to the detachment between the company's stock price and bond performance as a warning sign. Larry McDonald, editor and founder of the Bear Traps Report, told CNBC's "Trading Nation" that a "disconnect" between the stock's massive market capitalization and the company's withering bond price is concerning. Here are his reasons why. • There is a clear disconnect between Tesla's sizable $45 billion market cap and the company's bonds, yielding around 7 percent after Moody's downgraded the credit rating late last week. • Even as the stock has seen a bit of a rebound since hitting a year-to-date low of $244.59 per share earlier this week, its debt has not made the same rebound; this is a serious disconnect, and it's likely that the stock is "wrong" and the bonds are "correct." • The central concern for the market is Tesla's immense cash burn; Tesla last quarter reported negative free cash flow of $276.7 million, and negative $1.4 billion the previous quarter. • It is plausible Tesla could turn to convertible bonds to raise fresh capital. Such a move could pose a risk for equity shareholders. Bottom line: The disconnect between Tesla shares and the company's corporate bonds could be signaling trouble ahead.
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7a511b8c2d00364c2d01ed1edbc60814 | https://www.cnbc.com/2018/04/05/student-loan-debt-is-more-likely-if-you-live-in-one-of-these-states.html | The median student loan payment in Washington, D.C. is $242. Find out what yours is | The median student loan payment in Washington, D.C. is $242. Find out what yours is
Pamela Joe McFarlane | Getty Images
College grads from New Hampshire are probably carrying student loan debt. In 2015, 64 percent of undergraduate students hailing from the Granite State had federal student loans.
From California? You're more likely to be debt-free. Just 1 in 5 students from the Golden State had federal student loans that year.
A new tool from the Urban Institute, a nonpartisan think tank in Washington, D.C., lets people dig into student loan information on a state — and even county — level. You can check the median student loan debt of residents in Albany County, Wyoming ($19,542), for example, or the share of student loan debt in collections in Ada Country, Idaho (3 percent).
Outstanding student loan debt in the U.S. has swelled to more than $1.3 trillion. But researchers haven't put much time into understanding the geographic distribution of this burden, said Caroline Ratcliffe, a senior fellow at the Urban Institute, and a researcher on the map project.
Until now.
The Midwest and the Northeast are the regions most heavily saturated in student debt, according to The Urban Institute's calculations, with the worst states being New Hampshire, Pennsylvania and Maine. Meanwhile, residents in New Mexico, Wyoming and California carry the least education debt.
Unsurprisingly, students from states where college is more expensive tend to borrow more.
The findings also assessed factors that make someone more likely to be burdened by education debt.
"The people who struggle the most to pay back student loan debt tend to be people with lower amounts of student loans who haven't completed their degree," Ratcliffe said. "So now they have the debt but no degree."
More from College Game Plan:College applicants are increasingly stressed over paying the tab The top 10 private colleges with generous financial aid packages Want more college aid? Here's how to get it
The map also highlights racial disparities, Ratcliffe said.
"Over 90 percent of white people in Washington, D.C. have at least a bachelors' degree, and it's only 40 percent of non-whites," she said. "You see a higher share of people with student loan debt in predominately non-white areas than white areas."
VIDEO1:1001:10Deciphering your financial aid offerYour Money, Your Future
These are the states whose residents have the highest median monthly student loan payments:
Median monthly student loan payment: $242
Median monthly student loan payment: $197
Median monthly student loan payment: $196
Median monthly student loan payment: $189
Median monthly student loan payment: $188
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d9396b6efe0461969871586d72ba517c | https://www.cnbc.com/2018/04/05/trump-on-amazon-the-playing-field-has-to-be-level-for-everybody.html | Trump on Amazon: 'The playing field has to be level for everybody' | Trump on Amazon: 'The playing field has to be level for everybody'
VIDEO1:2301:23Trump slams Amazon after Washington Post reports he's unhappy with North KoreaNews Videos
President Donald Trump lashed out against Amazon for the sixth time in a week, during an Air Force One trip on Thursday back from an event in West Virginia.
"They are not on an even playing field," Trump told reporters, contending other retailers are at a disadvantage to the e-commerce giant. "The playing field has to be level for everybody," he said.
The president took a moment to criticize The Washington Post, which is owned by Amazon CEO Jeff Bezos. Trump repeated his false claim from earlier on Thursday that it acts as a "lobbying effort" for the e-commerce company.
@realDonaldTrump tweet
He then switched gears, mentioning how "the Post Office is not doing well with Amazon."
He noted that the Supreme Court is expected to decide later this year on whether all Amazon transactions will be subject to state sales tax.
"We'll see what happens," the president said.
Trump has been an extremely vocal critic of Amazon in recent weeks, claiming that the company is taking advantage of its deal with the U.S. Postal Service to hurt brick-and-mortar retailers.
Some observers have argued the partnership between USPS and Amazon has been positive for the delivery service.
Amazon shares edged down in extended trading.
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f5c6710135fb3c08d50d808af549fe68 | https://www.cnbc.com/2018/04/05/trumps-latest-tariff-threat-is-a-ridiculous-attempt-at-intimidation-chinese-state-media.html | Trump's latest tariff threat is a 'ridiculous' attempt at intimidation: Chinese state media | Trump's latest tariff threat is a 'ridiculous' attempt at intimidation: Chinese state media
Chinese state media on Friday slammed Donald Trump's threat of more trade action against China as "ridiculous" after the U.S President called for an additional $100 billion of tariffs, escalating an already high-stakes trade dispute between the two nations.
"This latest intimidation reflects the deep arrogance of some American elites in their attitude towards China," the state-run Global Times said in an editorial.
Trump said on Thursday he had instructed U.S. trade officials to consider $100 billion in additional tariffs against China, upping the ante in an already high-stakes trade confrontation between the world's two biggest economies.
In making the call for extra tariffs, Trump wanted to vent his anger with a "bomb-like" statement, the newspaper said, adding that whether the tariffs are actually put into effect and what the consequences will be "are secondary to him."
Washington on Tuesday proposed $50 billion in duties on Chinese goods aimed at forcing Beijing to address what the United States says is deeply entrenched theft of U.S. intellectual property and forced technology transfer from U.S. companies.
China hit back within hours with its own threatened tariffs on U.S. imports including soybeans, planes, cars, whiskey and chemicals.
The widely read Global Times is run by the ruling Communist Party's official People's Daily, although its stance does not necessarily reflect Chinese government policy.
President Donald Trump and China's President Xi Jinping leave after an opera performance at the Forbidden City in Beijing, China, November 8, 2017.Jonathan Ernst | Reuters
Financial markets have been unnerved for days by the trade fight and Trump's management of it, with the president's latest salvo sending U.S. stock futures tumbling and pushing up the safe-haven yen.
Earlier on Friday, the People's Daily described the U.S. trade action against China as akin to "climbing a tree to catch fish."
Washington's attempts at reducing its trade deficit by engaging in a trade war were compounding its mistakes, it added.
"History and reality have repeatedly proved that economic globalisation has provided a strong impetus for the development of international trade and economics," the newspaper said, adding that the United States was "one of the biggest beneficiaries" of this.
Instead of asking China to reduce its exports to address the trade imbalance, the United States should increase its own exports, the editorial said, adding that Washington was already restricting its exports to China, especially of high-tech products.
In Moscow on Thursday, Chinese foreign minister Wang Yi also accused the United States of picking the "wrong target" with its tariffs against China.
"The United States thought that it would be cheaper to engage in protectionism and it was a miscalculation," he said, according to comments posted on the Chinese foreign ministry's website.
"China and the United States are both big countries in the world and should respect each other and treat each other as equals," he added.
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cc751411a3088495137eb9b06df6bba8 | https://www.cnbc.com/2018/04/05/us-plans-to-sanction-russian-oligarchs-this-week-sources.html | US plans to sanction Russian oligarchs this week: Sources | US plans to sanction Russian oligarchs this week: Sources
The United States plans to sanction Russian oligarchs this week under a law targeting Moscow for meddling in the 2016 U.S. election, sources familiar with the matter said on Wednesday, in what could be the most aggressive move so far against Russia's business elite.
The action, which could affect people close to President Vladimir Putin, reflects Washington's desire to hold Russia to account for allegedly interfering in the election — which Moscow denies — even as U.S. President Donald Trump holds out hope for good relations with Putin.
Trump has faced fierce criticism for doing too little to punish Russia for the election meddling and other actions, and Special Counsel Robert Mueller is probing whether his campaign colluded with the Russians, an allegation the president denies.
The sanctions, which two sources said would be announced as early as Thursday, would follow the March 15 U.S. decision to sanction 19 people and five entities, including Russian intelligence services, for cyber attacks stretching back at least two years.
Vladimir PutinAlexander Zemlianichenko | POOL | Reuters
While the steps were the most significant taken against Moscow since Trump took office in January 2017, his decision at the time not to target oligarchs and government officials close to Putin drew criticism from U.S. lawmakers in both parties.
This week's actions will include sanctions against Russian oligarchs, including some with ties to Putin as well as to the Russian government, according to two U.S. officials briefed on the deliberations.
Four sources said the sanctions would be imposed under the Countering America's Adversaries Through Sanctions Act, also known as CAATSA, which was passed by Republicans and Democrats seeking to punish Russia for its 2014 annexation of Crimea from Ukraine, involvement in the Syrian civil war and meddling in the 2016 U.S. presidential election.
U.S.-Russian ties have worsened with allegations, which Moscow denies, that Russia was responsible for a March 4 nerve agent attack on a former Russian spy in Britain. On March 26, the United States and several European states announced plans to expel more than 100 Russian diplomats in response.
The White House and Treasury declined comment on whether they planned to impose sanctions this week. When asked about the issue, a senior U.S. official said:
"The administration is committed to implementing the CAATSA law as we have said many times. We published an oligarch designation recently and the secretary of the Treasury said further action would be taken. But at this time we dont have anything specific to announce."
Complying with the law, the Trump administration on Jan. 30 published a list of the heads of Russian state-owned companies and "oligarchs," including such prominent figures as Alexei Miller, the chief executive of Gazprom, and Igor Sechin, the chief executive of Rosneft.
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138d8c188852e2d77c2c5e849e26c35b | https://www.cnbc.com/2018/04/06/bet-founder-trump-economy-brings-black-workers-back-into-labor-force.html | BET founder: Trump's economy is bringing black workers back into the labor force | BET founder: Trump's economy is bringing black workers back into the labor force
VIDEO1:2301:23BET founder: Trump's economy is bringing black workers back into the labor forceSquawk Box
The growing U.S. economy and improving business environment is bringing black workers back into the labor force, BET founder Robert Johnson told CNBC on Friday.
Johnson, the nation's first black billionaire, spoke before Friday's jobs report, which showed nonfarm payrolls rose 103,000 in March, falling well short of the 193,000 gain economist were expecting.
In January, the Labor Department reported the unemployment rate among black workers was at its lowest since at least the early 1970s, when the government began tracking the data. The unemployment rate for black Americans spiked in January and then fell in February. The rate was unchanged in March at 6.9 percent.
"When you look at that [January report], you have to say something is going right," said Johnson, a Democrat and founder and chairman of The RLJ Cos.
"You have to take encouragement from what's happening in the labor force and the job market," Johnson told "Squawk Box." "When you look at African-American unemployment, ... you've never had African-American unemployment this low and the spread between African-Americans and whites narrowing."
Johnson said that means the jobs market is "soliciting employees who have been out of the labor force, some of it based on discrimination, some of it based on changes in education, access and technology changes."
Additionally, the business environment in the U.S. is also good, Johnson said. "I believe if you take into account the Trump tax cut, you take into account the drop in unemployment, ... and you take into account that interest rates are fairly stable" the economy is going to grow, he said.
"I believe the economy is on a strong growth path," he added.
President Donald Trump has touted the black unemployment rate both on Twitter and his State of the Union address in January. Critics say Trump can't take full credit because black unemployment had been on the decline before Trump took office.
Johnson has said he has known Trump for years. Johnson met with the then president-elect in 2016 and said he believes the president wants to work with African-Americans and all Americans to boost the economy.
Johnson also spoke again about a job offer he received from Trump. He said he didn't take the unspecified position because he didn't want a government job and not because of the president's policies.
VIDEO13:0513:05BET founder Robert Johnson on the Trump economySquawk Box
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ab2b15e4647b18ae37985b2857f2463a | https://www.cnbc.com/2018/04/06/ecb-benoit-coeure-says-a-trade-war-would-have-damaging-consequences.html?__source=fincont&par=fincont | ECB's Benoit Coeure says a trade war would have 'damaging' consequences for the global economy | ECB's Benoit Coeure says a trade war would have 'damaging' consequences for the global economy
VIDEO0:5900:59ECB’s Coeure: Trade war has potential for ‘damaging’ effects globallyStreet Signs Europe
A key policymaker at the European Central Bank (ECB) believes a trade war would have "damaging" consequences for the whole world, including the U.S.
Benoit Coeure, an executive board member at the euro zone's central bank, warned that the current rhetoric on trade could escalate and provoke severe shocks in the global economy.
"If this would move into a full-fledged trade war, this has a potential to have quite damaging consequences for growth and jobs, globally, including in the U.S.," he said.
Speaking to CNBC's Steve Sedgwick on the sidelines of the European House Ambrosetti Forum in Italy Friday, he said he wasn't sure that the world was in a trade war just yet.
"As much as possible, if we could avoid the bellicose semantics and come back to a reasonable discussion that would help for economic confidence," he said.
The French economist admitted that the current exchange of words and policy decisions between the U.S. and its trade partners are already having a negative impact on the global economy.
"We've obviously seen stock prices going down, some risk premia going up, so some tightening of financial conditions globally, starting with the U.S. But it all depends on how the situation will evolve and that's certainly what we don't want to see — a general tightening of financial conditions," he said.
Coeure added that the current trade tensions are the "biggest" concern that the ECB has at the moment.
Benoit Coeure, executive board member of the European Central Bank (ECB).Alex Kraus | Bloomberg | Getty Images
Coeure's comments come as concerns rise over a trade war between the U.S. and China with both economic superpowers threatening to target each other's key exports with import tariffs.
Earlier at the European House Ambrosetti Forum, Coeure warned that changes in global tariffs would mean the baseline economic forecast for the U.S. would fall 2.5 percent. According to ECB staff simulations, world trade in goods could contract by up to 3 percent just in the first year after the change in tariffs and global growth by up to 1 percent.
"An economy imposing a tariff which is retaliated by other countries would clearly be worse off. Its living standards would fall and jobs would be lost," Coeure said in a speech.
"The effects on other economies would primarily depend on their size, trade openness and how much they trade with the tariff-imposing country," he added.
The French economist also said that higher tariffs could have implications for monetary policy and equity markets.
"The first is the effects higher tariffs would have on growth and inflation in the near to medium term … The second main implication is the possible impact on long-run potential output growth, and how that may influence the conduct of monetary policy," Coeure said.
VIDEO2:5902:59Coeure: Monetary accommodation remains needed, trade war or notStreet Signs Europe
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f02e9317a8942abccff8d19d03c4e99d | https://www.cnbc.com/2018/04/06/facebook-is-able-to-remove-zuckerbergs-messages-from-others-inboxes.html | Facebook is able to remove Mark Zuckerberg's messages from other users' inboxes — something the rest of us can't do | Facebook is able to remove Mark Zuckerberg's messages from other users' inboxes — something the rest of us can't do
Getty Images
Facebook messages that Mark Zuckerberg and other Facebook executives sent to other users on the social network were recently found to be deleted from those user's inboxes, TechCrunch reported Friday.
Three unnamed sources speaking to TechCrunch said that messages they had previously received from Zuckerberg were no longer in their inboxes, though the messages they sent to Zuckerberg remained.
Facebook doesn't allow users to delete messages from a recipients inbox, which suggests that Zuckerberg has special treatment on the social network. The company told TechCrunch that the ability to retract Zuckerberg's messages was instituted for legal compliance after Sony Pictures' emails were hacked in 2014.
Facebook confirmed to CNBC that it will roll out a feature that's similar to the one Mark Zuckerberg used to all users.
"We have discussed this feature several times," a Facebook spokesperson said. "And people using our secret message feature in the encrypted version of Messenger have the ability to set a timer — and have their messages automatically deleted. We will now be making a broader delete message feature available. This may take some time. And until this feature is ready, we will no longer be deleting any executives' messages. We should have done this sooner — and we're sorry that we did not."
CNBC recently explained how to download all of your private data from Facebook, and that data include old chat messages that you might have exchanged with other users on Facebook. It typically appears as a two-way conversation with messages from both parties. In this instance, TechCrunch said that Zuckerberg's messages don't appear at all, even in the downloaded logs.
Zuckerberg has previously had access to features that weren't available to some users. Until last year, other users on Facebook weren't able to block him, for example. He was also scrutinized for comments he made while at Harvard, when he messaged a friend that users who trusted him with their data were "dumb f****."
But Facebook's treatment of user data has seen a fresh wave of criticism as millions of consumers have been told they can assume some personal data has been scraped from their profiles.
Read the full TechCrunch story here.
— Anita Balakrishnan contributed to this report.
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93e4baf2c9eeb2019755ed2aed2d70a0 | https://www.cnbc.com/2018/04/06/kevin-oleary-sheds-a-tear-and-opens-up-about-his-rise-to-millions.html | Mr. Wonderful might seem tough, but beyond his harsh exterior, Kevin O'Leary is a self-made mogul who earned every bit of his success through dedication and hard work.
O'Leary was only seven years old when his father died, leaving his mother alone with two children and a very uncertain future. Things got back on track when his mother remarried a man named George, who eventually became O'Leary's stepfather and changed the course of his life forever.
George worked for a division of the United Nations, which shuttled the family all over the world. They lived in Cambodia, Cyprus, Tunisia, Japan, France, Switzerland; every two years it was a different country. O'Leary says, "Looking back at all the unique cultures that I've been steeped in, you understand everybody's challenges in the world, not just your own."
O'Leary's stepdad was also the one who spoke up when he tried out the hippie lifestyle after college. George advised, "You're going to starve to death. You should go back to school right now." O'Leary listened, and after graduation started his first company Soft Key, which eventually turned into The Learning Company, which he sold for $4.2 billion.
Today, O'Leary is proud to be an entrepreneur and to help other entrepreneurs so that they can create jobs. He says, "There's nothing nobler in America than doing that."
And while O'Leary is proud of his career, he still gets teary-eyed at the thought of what his father would think of it. O'Leary says that if he could go back in time and speak to his father, he would express his gratitude for all the lessons that got him to where he is today. O'Leary thinks his father would be proud of what he achieved and is grateful to relive that journey over and over again with the companies he is funding.
Shark Tank airs weeknights starting at 7P ET.
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17aa1527f879c18293cbc35ca60025b4 | https://www.cnbc.com/2018/04/06/low-black-unemployment-doesnt-show-the-whole-picture-morial.html | Low black unemployment doesn’t show the whole picture: Urban League CEO Marc Morial | Low black unemployment doesn’t show the whole picture: Urban League CEO Marc Morial
VIDEO3:5903:59Trade war fears give me concern for markets and stability: CEOPower Lunch
The latest black unemployment rate, though near its historic low, does not paint a complete picture of African-Americans' economic situation, said Marc Morial, president and chief executive officer at the National Urban League.
"The black unemployment rate is still twice as high as the white unemployment rate," Morial said Friday on CNBC's "Power Lunch."
"Let's look at this in context, not look at one number and say, 'Ok, good. Let's celebrate,'" he said.
Friday's March jobs report showed a black unemployment rate of 6.9 percent, the same level as in February. The March white unemployment rate is 3.6 percent, and the overall unemployment rate remains at a 17-year low of 4.1 percent.
Morial, who served as mayor of New Orleans from 1994 to 2002, said the black homeownership rate and wealth gap between white and black Americans "are as bad as they've been in 40 years."
In 2017's fourth quarter, the black homeownership rate was 42.1 percent, compared with 72.7 percent among whites, according to the U.S. Census Bureau.
"So you can't look at the unemployment rate and say that's a picture of the economy in black America," Morial said.
The black unemployment rate dropped to 6.8 percent in December 2017, the lowest it's been since 1972, before increasing the following month. The white unemployment rate in the same month was 3.7 percent.
While President Donald Trump has taken credit for the low black unemployment rate, Morial pointed out that under former President Barack Obama, the black unemployment rate fell from 16 percent to 8 percent.
Ron Christie, founder and president at Christie Strategies, told "Power Lunch" he sees the falling black unemployment rate as a good sign.
"[It is] progress that has been moving for years in the right direction," said Christie, who served as a special assistant under President George W. Bush.
BET founder Robert Johnson, the nation's first black billionaire, agreed "something is going right."
"When you look at African-American unemployment, ... you've never had African-American unemployment this low and the spread between African-Americans and whites narrowing," Johnson said Friday on CNBC's "Squawk Box." Johnson said he has known Trump for years and once received a job offer from him.
The U.S. Department of Labor began reporting black unemployment rates in 1972. In that time, the rate of black unemployment had never fallen below 7 percent.
"I'm not displeased that the unemployment rate is down to where it is," Morial said. "But what I'm saying is, it is still twice as high as the white rate."
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a47763a4a6ebbb470ef45a9b9471b88c | https://www.cnbc.com/2018/04/06/nonfarm-payrolls-march-2018.html?utm_source=akdart | Nonfarm payrolls increase by 103,000 in March, vs 193,000 jobs expected | Nonfarm payrolls increase by 103,000 in March, vs 193,000 jobs expected
VIDEO1:4601:46US economy adds 103,000 jobs in MarchSquawk Box
Nonfarm payrolls rose 103,000 in March while the unemployment rate was 4.1 percent, falling well short of Wall Street expectations during a month where weather caused havoc on the jobs market, according to a Bureau of Labor Statistics report Friday.Economists had been expecting a payrolls gain of 193,000 and the unemployment rate to decline one-tenth of a point to 4 percent. The monthly reading was a huge slip from the 326,000 reported in February.
A broader measure of unemployment that includes discouraged workers and those holding part-time positions for economic reasons — the underemployed — fell two-tenths of a point to 8 percent, its lowest reading in 11 years.
"If one were to only focus on this single month, the March employment report is on the disappointing side," said Mark Hamrick, senior economic analyst at Bankrate.com. "Broader context is appropriate, however. The job market is widely regarded to be close to full employment. So, hiring gains should be slowing at this point in the expansion."
In addition to the payrolls news, the closely watched average hourly earnings figure rose 0.3 percent, against estimates of 0.2 percent. The number equates to a healthy but not worrisome 2.7 percent rate on an annualized basis. The average work week was unchanged at 34.5 hours.
Stock market reaction to the report was muted, with major indexes lower largely on renewed worries over a U.S. trade war with China.
"Wage growth continues to inch higher but not enough to worry markets at this point," said Quincy Krosby, chief market strategist at Prudential Financial. "As we move closer and closer towards full employment expectations are that headline employment should slow. This number reflects a continued reversion to the mean."
Professional and business services led with 33,000 new jobs while manufacturing and health care added 22,000 new jobs apiece. Mining rose 9,000 while construction lost 15,000 positions and retail fell 4,000.
In addition to the weak March growth, January's total was revised down from 239,000 to 176,000, though February got a boost from 313,000 to 326,000.
The wide swings in monthly numbers "is a good illustration of the inherent volatility in the nonfarm payroll data," said Paul Ashworth, chief U.S. economist at Capital Economics. "The March gain was the worst in six months. The February gain was the best in 2½ years."
Job creation skewed heavily to part time, which rose by 310,000 while full-time positions fell by 311,000, according to the household survey.
The March government number differed strongly from an ADP/Moody's Analytics reading earlier this week that showed private payrolls up by 241,000. The BLS report indicated that all but 1,000 of the new jobs came from the private sector.
"Weather disruptions played a key role in the weak reading," said Beth Ann Bovino, U.S. chief economist at S&P Global Ratings. "One million jobs were disrupted because of weather in March. Translating that to payrolls means a lot of people weren't counted."
Weather distortions are common for March, which saw just 78,000 jobs added in 2015 and 73,000 in 2017. March 2009 also was the worst month for job losses during the Great Recession with a plunge of 802,000.
Labor force participation slipped to 62.9 percent as those considered not in the labor force jumped by 323,000 to 95.3 million.The report comes amid a series of mixed signals for the economy.Data earlier this week showed factory orders on the rise though spending is slowing. Consumer sentiment is at a 14-year high, but worries are percolating over a brewing trade war between the U.S. and China.
Federal Reserve policymakers watch the jobs number closely. The central bank is widely expected to hike its benchmark interest rate in June and at least once more before the end of the year. The Fed is keeping an especially close eye on wages for signs of inflation.
Get the market reaction here.
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9924513159592e6e904cfa5cabf775da | https://www.cnbc.com/2018/04/06/sec-freezes-27-million-from-stock-sales-involving-ceo-of-crypto-company-longfin-and-three-others.html | SEC takes aim at controversial crypto company Longfin, freezes $27 million in proceeds from insider stock sales | SEC takes aim at controversial crypto company Longfin, freezes $27 million in proceeds from insider stock sales
The Securities and Exchange Commission in Washington.Jim Bourg | Reuters
The U.S. Securities and Exchange Commission obtained an emergency freeze of $27 million in trading profits involving the CEO of cryptocurrency company Longfin and three other people, the agency said in a statement Friday.
Longfin's stock was halted on the Nasdaq as of 10:01 a.m. ET on the SEC alert after jumping more than 47 percent. Shares had been halted numerous times throughout the week for volatility. The stock was worth more than $3 billion at one point in December after the company announced a cryptocurrency-related acquisition.
"We acted quickly to prevent more than $27 million in alleged illicit trading profits from being transferred out of the country," Robert Cohen, chief of the SEC Enforcement Division's Cyber Unit said in the statement. "Preventing defendants from transferring this money offshore will ensure that these funds remain available as the case continues."
The SEC claims Longfin CEO and Chairman Venkat Meenavalli had the company issue unregistered shares to the three people so they could sell them, which they did.
The financial watchdog does allow people to own a certain amount of unregistered shares without having to go through what one lawyer calls a "very long" registration process. But those shares are restricted and cannot be sold during certain time periods.
"You're not allowed to do that; you can't transfer to your friends. This is playing fast and loose," according to Peter Henning, a Wayne State University law professor and former federal prosecutor. "If you don't follow those rules you've broken the law and all the proceeds of it are illegal."
The SEC alleged that Longfin affiliates Amro Izzelden "Andy" Altahawi, Dorababu Penumarthi, and Suresh Tammineedi sold large blocks of their restricted Longfin shares illegally to the public shortly after the company acquired the cryptocurrency business and began trading on the Nasdaq, according to the complaint.
"Essentially they played a shell game here, and sold shares that they weren't allowed to sell," according to Henning.
The small company has attracted controversy over its ties to cryptocurrency, and its CEO said this week that he is not going to sell his shares while he is fighting $1.4 billion in bets against the stock by short-sellers.
"I'm not going to sell [for] the next three years," Meenavalli said Wednesday on CNBC's "Fast Money" as he was rigorously questioned about stock sales and inconsistencies about his business.
On Monday, Longfin disclosed that the SEC was investigating trading in the company's shares and requested documents related to its IPO and acquisition of Ziddu.com, according to a 10-K filing.
The stock has fallen more than 90 percent from its all-time high of $142.82. Volatility has picked up in the last two weeks following several negative headlines, including a tweet from noted short-seller Andrew Left's Citron Research.
CORRECTION: An earlier version misstated the stock's all-time high. It is $142.82.
— CNBC's Evelyn Cheng contributed to this report.
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949074dcd12d12022f309c1dbb11114a | https://www.cnbc.com/2018/04/06/soros-fund-reportedly-preparing-to-trade-cryptocurrencies.html | Soros fund reportedly preparing to trade cryptocurrencies | Soros fund reportedly preparing to trade cryptocurrencies
VIDEO0:5000:50Soros fund reportedly preparing to trade cryptocurrenciesNews Videos
The head of macro investing at billionaire George Soros' family office is planning to trade cryptocurrencies, Bloomberg said Friday, citing sources familiar with the matter.
Soros Fund Management's Adam Fisher received internal approval to trade digital assets in the last few months but has not taken action yet, the report said, citing sources.
The firm declined to comment to CNBC.
The news comes as bitcoin has fallen roughly 50 percent for the year so far and is trading at about a third of its record high above $19,000 hit in mid-December.
George Soros said in a speech at the World Economic Forum in Davos, Switzerland, in January that cryptocurrency is a "typical bubble." However, he said the underlying blockchain technology could be put to "positive use."
Regulatory filings for the fourth quarter of 2017 showed Soros' family office became the third-largest shareholder of Overstock.com, a home goods e-commerce company that has drawn Wall Street's interest for its plans to develop a digital asset trading platform.
Read the full Bloomberg story here.
— CNBC's Arjun Kharpal contributed to this report.
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e2450c98ec9237d0f5b0cc7f3c95eace | https://www.cnbc.com/2018/04/07/ecris-lakshman-achuthan-turns-sour-on-us-economy-growth.html | Former self-proclaimed 'super bull' sours on economic growth, sees 'good old fashioned slowdown' in the works | Former self-proclaimed 'super bull' sours on economic growth, sees 'good old fashioned slowdown' in the works
VIDEO1:2201:22An unemployment rate trend may signal a broader economic slowdownTrading Nation
One of Wall Street's veteran economic forecasters is toning down his economic growth forecast.
The Economic Cycle Research Institute's Lakshman Achuthan told CNBC his leading indicators are pointing to a slowdown that's picking up momentum — highlighting one particular trend in the latest unemployment rate chart that supports his case.
"What really caught our eye, is that unemployment rate — where it's just flat-lined since October," the firm's chief operations officer said Friday on CNBC's "Trading Nation."
He contended it doesn't fit within the narrative of the United States' strong growth story.
His thoughts came as the Dow Jones Industrial Average was in the process of closing in correction territory — around 10 percent off its all-time high. He believes Wall Street is finally starting to realize the economy is not as strong anymore.
Achuthan isn't the only one. Guggenheim's head of investing sees a tough road ahead for the market and economy, with a sharp recession and a 40 percent decline in stocks looming.
Scott Minerd, who warned clients in a recent note that the market is on a "collision course with disaster," told CNBC on Friday he expects the worst of the damage to start in late 2019 and into 2020. Along with the decline in equities, a rise in corporate bond defaults is likely as the Federal Reserve raises interest rates and companies struggle to pay off record debt levels.
"When we look at what may be the backdrop for all the jitters that are going on, we would point to a good old fashioned slowdown in the economy that is coming onto people's radar just around now," Achuthan said.
But don't mistake Achuthan for being permanently bearish. He was a self-proclaimed "super bull" following the 2016 presidential election, as recession chatter was heating up.
"Last fall, the same leading indicators that anticipated the synchronized global growth that we all enjoyed last year in 2017, they turned over," he added.
He isn't calling for the economy to tank anytime soon. But with every passing month without a pickup in growth, Achuthan warns the economy will be less equipped to deal with a negative shock such as a potential trade war. So, he's urging stock market investors to be vigilant.
Achuthan recommended retail investors should consider buying the 10-Year Treasuries the next time yields reach 3 percent, as leverage against downturn risks.
--CNBC's Jeff Cox contributed to this article.
VIDEO3:5003:50Former self-proclaimed ‘super bull’ sours on economic growthTrading Nation
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1aad90cc84d22127ec8b30a516066e15 | https://www.cnbc.com/2018/04/07/facebook-suspends-canadian-firm-aggregateiq-over-data-scandal.html | Facebook suspends Canadian firm AggregateIQ over data scandal | Facebook suspends Canadian firm AggregateIQ over data scandal
Getty Images
Facebook Inc said on Friday that it had suspended Canadian political consultancy AggregateIQ from its platform after reports that the data firm may have improperly had access to the personal data of Facebook users.
Facebook is under intense pressure after the data of millions of its users ended up in the hands of political consultancy Cambridge Analytica. Christopher Wylie, a whistleblower who once worked at Cambridge Analytica, has said that it worked with Canadian company AggregateIQ.
"In light of recent reports that AggregateIQ may be affiliated with SCL and may, as a result, have improperly received FB user data, we have added them to the list of entities we have suspended from our platform while we investigate," Facebook said in a statement.
"Our internal review continues, and we will cooperate fully with any investigations by regulatory authorities."
Strategic Communication Laboratories (SCL) is a government and military contractor that is the parent of Cambridge Analytica.
Wylie has said that AggregateIQ received payment from a pro-Brexit campaign group before the 2016 referendum when Britain voted to quit the European Union.
The Canadian federal agency charged with protecting privacy rights of individuals said on Thursday that the agency, along with its counterpart in British Columbia, would jointly investigate Facebook and AggregateIQ over the ongoing data scandal.
British Columbia's privacy commissioner was separately investigating AggregateIQ over whether the Victoria-based company had broken provincial personal privacy rules for its role in the Brexit campaign.
Facebook Canada said on Wednesday that more than 600,000 Canadians had their data "improperly shared" with Cambridge Analytica.
AggregateIQ was not immediately available for a comment.
Cambridge Analytica tweeted on Wednesday, "When Facebook contacted us to let us know the data had been improperly obtained, we immediately deleted the raw data from our file server, and began the process of searching for and removing any of its derivatives in our system."
Facebook said on Wednesday that the personal information of up to 87 million users, mostly in the United States, may have been improperly shared with political consultancy Cambridge Analytica, up from a previous news media estimate of more than 50 million.
Facebook first acknowledged last month that personal information about millions of users wrongly ended up in the hands of Cambridge Analytica.
London-based Cambridge Analytica, which has counted U.S. President Donald Trump's 2016 campaign among its clients, said on Wednesday on Twitter that it had received no more than 30 million records from a researcher it hired to collect data about people on Facebook.
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b56b9ca7f5c7eb1508f241d7c42bc8c6 | https://www.cnbc.com/2018/04/08/cubeyou-cambridge-like-app-collected-data-on-millions-from-facebook.html | Facebook suspends another data analytics firm after CNBC discovers it was using tactics like Cambridge Analytica | Facebook suspends another data analytics firm after CNBC discovers it was using tactics like Cambridge Analytica
VIDEO2:2802:28Facebook suspends CubeYou after CNBC discoveryPower Lunch
Update: This story has been updated to reflect CubeYou's statement that it was not involved with the Apply Magic Sauce quiz, which was labeled for academic use only. CubeYou disputes Facebook's statements to CNBC that the You Are What You Like quiz was approved only for academic research purposes. CubeYou also says that it has not shared individualized information about Facebook users with marketers.
Facebook is suspending a data analytics firm called CubeYou from the platform after CNBC notified the company that CubeYou was collecting information about users through quizzes.
Facebook told CNBC that one earlier CubeYou app was approved for academic research only, and is investigating whether the company improperly misused information from this app for marketing purposes. The scenario is eerily similar to how Cambridge Analytica received unauthorized access to data from as many as 87 million Facebook user accounts to target political marketing. CubeYou has denied the apps were mislabeled or misused, and is seeking to be reinstated.
CubeYou, whose CEO denies any deception, sold data that had been collected by researchers working with the Psychometrics Lab at Cambridge University, similar to how Cambridge Analytica used information it obtained from other professors at the school for political marketing.
The CubeYou discovery suggests that collecting data from quizzes and using it for marketing purposes was far from an isolated incident. Moreover, the fact Facebook had not discovered the apparent mislabeling of its quiz for academic use until CNBC pointed out the problem suggests the platform has little insight into or control over this activity.
Facebook, however, disputed the implication that it can't exercise proper oversight over these types of apps, telling CNBC that it can't control information that companies mislabel. Upon being notified of CubeYou's alleged violations, Facebook said it would suspend all CubeYou's apps until a further audit could be completed.
"These are serious claims and we have suspended CubeYou from Facebook while we investigate them," Ime Archibong, Facebook vice president of product partnerships, said in a statement.
"If they refuse or fail our audit, their apps will be banned from Facebook. In addition, we will work with the UK ICO [Information Commissioner's Office] to ask the University of Cambridge about the development of apps in general by its Psychometrics Centre given this case and the misuse by Kogan," he said. Aleksander Kogan was the researcher who built the quiz used by Cambridge Analytica.
"We want to thank CNBC for bringing this case to our attention," Archibong added.
The revelation comes as Facebook CEO Mark Zuckerberg prepares to answer questions before Congress this week stemming from the Cambridge Analytica scandal. The Senate Commerce and Judiciary committees and the House Energy and Commerce Committee are expected to quiz him on what the site is doing to enhance user privacy, and prevent foreign actors from using Facebook to meddle in future elections.
Since the Cambridge Analytica scandal erupted, Zuckerberg has claimed personal responsibility for the data privacy leaks, and the company has launched several initiatives to increase user control over their data.
CubeYou boasts on its website that it uses census data and various web and social apps on Facebook and Twitter to collect personal information. CubeYou then contracts with advertising agencies that want to target certain types of Facebook users for ad campaigns.
CubeYou's site says it has access to personally identifiable information (PII) such as first names, last names, emails, phone numbers, IP addresses, mobile IDs and browser fingerprints.
On a cached version of its website from March 19, it also said it keeps age, gender, location, work and education, and family and relationship information. It also has likes, follows, shares, posts, likes to posts, comments to posts, check-ins and mentions of brands/celebrities in a post. Interactions with companies are tracked back to 2012 and are updated weekly, the site said.
"This PII information of our panelists is used to verify eligibility (we do not knowingly accept panelists under the age of 18 in our panel), then match and/or fuse other online and offline data sources to enhance their profiles," CubeYou wrote.
The company's website currently claims it has more than 10 million opted-in panelists, but the cached March 19 version said it had "an unbiased panel of more than 45 million people globally." (Click the images in this story to make them bigger.)
CubeYou collected a lot of this data through online apps that are meant to be entertaining or fun.
An ad agency exec who met with the company confirmed CubeYou said it mostly collects information through quizzes.
According to its website, one of CubeYou's "most viral apps" is a Facebook quiz created in conjunction with the University of Cambridge called "You Are What You Like." It is meant "to predict a user's personality based on the pages s/he liked on Facebook."
A substantially similar app, "Apply Magic Sauce," existed on the platform as recently as Sunday morning, and YouAreWhatYouLike.com redirected to ApplyMagicSauce.com. CubeYou denies the apps are connected, or that it had anything to do with Apply Magic Sauce. Another version still called "You Are What You Like" was also available as of Sunday morning, Facebook told CNBC.
When a user clicks on the "App Terms" link for the Apply Magic Sauce app, it links to a page saying that the information collected through the quiz is intended for "non-exclusive access for research purposes only" and only for "non-profit academic research that has no connection whatsoever to any commercial or profit-making purpose or entity."
After CNBC contacted Facebook for this story, Facebook said there were two previous versions of the app named "You Are What You Like," one created in 2013, which was deleted by the developer, and one submitted later in 2013.
Facebook told CNBC that both of those prior versions were approved only for academic use. Facebook takes no stance on whether CubeYou showed the proper disclaimers to users on its site.
In addition, those prior versions were able to get access to information from friends of the people who took the quiz — as also happened in the Cambridge Analytica case. Until 2015, Facebook allowed developers to access information on Facebook friends as long as the original app user opted in, a loophole that expanded the database of personal information considerably.
If the original user still remained opted in, CubeYou could theoretically still access their data to this day.
When reached for comment, CubeYou CEO Federico Treu said the app had the right disclaimers on a separate site. He said the company was involved with developing the app and website, but only worked with Cambridge University from December 2013 to May 2015.
Treu said CubeYou only collected data from that time and has not had access since June 2015 to data from new people who have taken the quiz.
He also pointed out that the YouAreWhatYouLike.com website has different — and looser — terms of usage than the Facebook terms that CNBC discovered.
The website says, "the information you submit to You Are What You Like may be stored and used for academic and business purposes, and also disclosed to third parties, including for example (but not limited to) research institutions. Any disclosure will be strictly in an anonymous format, such that the information can never be used to identify you or any other individual user." (Italics added by CNBC.)
He also denied CubeYou has access to friends' data if a user opted in, and said it only connects friends who have opted into the app individually.
Cambridge University said CubeYou's involvement was limited to developing a website.
"We were not aware of Cubeyou's claims on their blog," the University of Cambridge Psychometrics Center said in a statement.
"Having had a look now, several of these appear to be misleading and we will contact them to request that they clarify them. For example, we have not collaborated with them to build a psychological prediction model — we keep our prediction model secret and it was already built before we started working with them," the institution said.
"Our relationship was not commercial in nature and no fees or client projects were exchanged. They just designed the interface for a website that used our models to give users insight on their [the users'] data. Unfortunately collaborators with the University of Cambridge sometimes exaggerate their connection to Cambridge in order to gain prestige from its academics' work," it added.
CubeYou certainly claimed it was able to use this data to target Facebook users, and advertisers seem to have bought the pitch.
CubeYou's website says its customers include global communications firm Edelman, and sports and entertainment agency Octagon. It also works with advertising agencies including 72 and Sunny (which counts Google, Adidas and Coors Light as clients), the Martin Agency (Discover, Geico, Experian), and Legacy Marketing (L'Oreal, Hilton, TGI Fridays), among others.
The site does not say which CubeYou data was used on which projects, but all agencies' testimonials talk about how CubeYou's data has allowed more understanding of potential customers.
"CubeYou is a great place for us to get smart about the consumer," one customer testimonial from Legacy Marketing says. "We primarily use Mintel for our research, but there's very little consumer segmentation and I think that the greatest benefit of a tool like CubeYou is you can get highly nuanced data about demographics, psychographics and interests so easily."
VIDEO1:0001:00How to download your Facebook archive Digital Original
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27e9823b1431f585fa013a0ba3976bcb | https://www.cnbc.com/2018/04/09/china-isnt-happy-about-its-newest-internet-stars-teenage-moms.html | China isn’t happy about its newest internet stars: Teenage moms | China isn’t happy about its newest internet stars: Teenage moms
Beijing Kwai Technology Co.'s app Kuaishou, or Kwai.Qilai Shen | Bloomberg | Getty Images
It was not Yang Qingning's millions of social media followers or her political beliefs that made the young woman the scorn of Chinese state media recently.
It was her tiny baby.
Two of China's most popular video platforms disappeared from app stores this week after the state broadcaster CCTV accused them of promoting underage pregnancy. A segment last week on CCTV featured what it said were teenage women whose videos — chronicling the joys and tribulations of motherhood, complete with images of swollen bellies — had attracted millions of followers and viewers. A stern but unspecific rebuke from China's top media regulator followed a few days later.
More from the New York Times:China's censors ban Winnie the Pooh and the letter 'N' after Xi's powerGroups in Myanmar fire back at ZuckerbergYouTube is improperly collecting children's data, consumer groups say
The slapdown — which comes as China's government extends its internet controls to encompass not only what it finds politically subversive, but also what it deems unwholesome or pornographic — prompted quick declarations of remorse from the video apps' creators.
"Content appeared on the platform that shouldn't have been there, and it has had an extremely bad influence on society," Su Hua, the chief executive of the company that operates Kuaishou, one of the apps, wrote in a statement. "I am very grateful to CCTV and other media for criticizing Kuaishou, so that I could clearly see my own deficiencies."
The company behind the other app, Huoshan, wrote: "Thanks to CCTV's supervision, Huoshan feels a deep sense of responsibility." The creators of both apps said that they would strengthen their systems for screening videos.
It was not clear whether or when the apps would be returned to stores. Spokeswomen for Kuaishou's and Huoshan's parent companies declined further comment.
Online video has become a fierce battleground for Chinese technology firms. Kuaishou (pronounced KWAI-show) says its app is used by 100 million people every day. The parent of Huoshan (hwaw-SHAN) is Beijing Bytedance Technology, which says its flagship news app, Jinri Toutiao, has 120 million daily users. The attention of big-name Silicon Valley investors such as Sequoia Capital has helped Bytedance become one of the most highly valued tech start-ups in the world, with a recent valuation of $30 billion.
Kuaishou has a huge following outside of China's megacities. The platform, which shares features in common with Instagram, Snapchat and Periscope, has become a way to exchange glimpses — often bawdy and free-spirited — of ordinary lives in China. It has made celebrities out of people as varied as train conductors, ice fishermen, female welders in shipyards and would-be guitar heroes in ramshackle hamlets.
The democratizing possibilities of such services have not gone unnoticed by China's censors.
As they have taken a harder line on online discourse, media regulators have made targets of celebrity gossip blogs, ranting rappers and more. Updates to several sections on Toutiao, Bytedance's news app, were halted for 24 hours recently after regulators accused it of spreading "vulgar information." Sina Weibo, a Twitter-like forum, had to take several features offline for a week after it was scolded for similar transgressions.
Adolescent motherhood is a subject that arouses special alarm in China. Even as economists warn of a demographic emergency caused by the "one child" policy, which was ended in 2015, unwed mothers — even those of legal age — are stigmatized and face legal bias. What is more, sex education has struggled to keep up with changing mores, increasing the likelihood of unwanted pregnancies.
Last week's CCTV segment begins with a young man and woman sitting together on a bed, their faces digitally blurred, as bouncy pop music plays in the background. "What do you think of when you see this video?" a narrator says. "Someone showing off their family's cute children? Wrong. These two children already have their own children. This mother is not even 16."
Over images of another young woman with strawberries digitally superimposed on her cheeks, the segment continues: "Perhaps this sweet young girl is obediently helping her parents take care of her little brother. You're wrong again. This is another 16-year-old young mother."
China does not allow men to marry before the age of 22, and women not until 20, the segment says. The young mothers on these apps, according to the segment, mostly live in rural areas and have dropped out of school. "Their lives are dull, and they crave attention," the narration says.
The segment says that several such women had been vying, on the video apps, to be crowned the internet's youngest mother. One went by the username "14 years old and already have my little cutie."
After you have viewed the Kuaishou account of one teenage mother, CCTV says, the app even recommends other teenage mothers whose videos might be of interest.
An expert interviewed in the segment warns that such technology could cause young viewers to be drawn into a self-reinforcing spiral of "negative influence." "She will think that in her world, this kind of abnormal or illegal behavior is normal," the expert says.
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dec0aa30b1a04e992611cd0297861fef | https://www.cnbc.com/2018/04/09/cramer-investors-got-too-negative-in-fridays-sell-off.html | VIDEO1:1201:12Cramer: There's always a better time to sellMad Money with Jim Cramer
For CNBC's Jim Cramer, there's always a better time to get out of stocks than during a major marketwide sell-off.
"We got too negative [on] Friday," the "Mad Money" host said on Monday as stocks pared their gains. "If you wanted to sell, your chance came this morning during the rally, not Friday during the freak-out."
"Look, this market is crazy," he continued, "but this morning we saw how a series of unexpected positives can send stocks soaring, and that's worth keeping in mind now that the Mueller investigation is making things even more chaotic."
Cramer pointed to Sunday night, when investors and market-watchers alike anxiously awaited news about Chinese retaliation to Trump's $100 billion tariff proposal.
Traders were even shorting Apple in anticipation of retaliatory tariffs on the iPhone maker, but what actually happened was much less drastic: China instead banned exports to North Korea of materials tied to weaponization, pressuring the country to disarm its military.
"Rather than the escalation so many feared, China offered President Trump an olive branch," Cramer said. "No wonder the futures started climbing Sunday night. No wonder Apple's stock caught on fire today. Friday was the wrong moment to sell. That's my takeaway here. You got a much better chance this morning if you really wanted out."
Investors also got too negative about potential mergers and acquisitions amid all of the uncertainty in the market, Cramer said.
But the moment they wrote off the idea of a takeover, drugmaker Novartis announced it would buy gene therapy play AveXis for $8.7 billion.
Even though AveXis' lead drug, which treats spinal muscular atrophy, competes with a similar treatment from Biogen, Novartis' faith in the company helped boost shares of AveXis over 81 percent to a 52-week high.
"Suddenly biotech, which had been among the worst of the sectors out there, justifiably came roaring back with a vengeance," the "Mad Money" host said.
So, even as the FBI raid of Trump lawyer Michael Cohen's offices drove stocks back down after Monday's recovery, Cramer insisted that investors understand the difference between measured, necessary selling and a marketwide panic.
"Here's the bottom line: President Trump's trade dispute with China is not the be-all and end-all of this market. I think there's simply been a vacuum of news about actual earnings and takeovers, so the endless negatives from Washington were allowed to take center stage," Cramer concluded.
"Now that earnings season's almost upon us, we can start to focus on individual companies again and their worth, and boy, I can't wait," he said. "We got too negative Friday, and if you really wanted out, the market always gives you a better time to sell."
VIDEO10:2310:23Cramer: We got too negative on Friday—there's always a better time to sellMad Money with Jim Cramer
Disclosure: Cramer's charitable trust owns shares of Apple.
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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d04e28822105b804b438841066f0e95d | https://www.cnbc.com/2018/04/09/ethics-watchdog-says-epa-chief-scott-pruitts-rent-deal-expenses-travel-raise-troubling-red-flags.html | Ethics watchdog says EPA chief Scott Pruitt's rent deal, expenses, travel raise troubling red flags | Ethics watchdog says EPA chief Scott Pruitt's rent deal, expenses, travel raise troubling red flags
Environmental Protection Agency Administrator Scott PruittGetty Images
The top federal ethics watchdog says embattled Environmental Protection Agency chief Scott Pruitt's actions related to his rent, travel and expenses "raise concerns" and may violate official standards of conduct.
The United States Office of Government Ethics' acting director also told the EPA in a letter that it should take "appropriate action" if Pruitt's conduct is found to have breached ethics rules.
The letter sent Friday and made public Monday laid out what has become a litany of controversies surrounding Pruitt, whose hold on his job as EPA administrator has become tenuous. The EPA had no immediate comment.
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President Donald Trump on Saturday posted a tweet in support of Pruitt. But Trump's chief of staff, John Kelly, reportedly has called on the president to fire Pruitt.
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It was revealed recently that Pruitt last year rented a room in Washington for just $50 per night from Vicki Hart, wife of lobbyist Steven Hart, whose clients were seeking action from the EPA. The agency's ethics official, Kevin Minoli, last week said that his initial determination that the rental deal did not violate federal rules was based on incomplete facts about that arrangement.
Last Thursday, The New York Times reported that "at least five EPA officials," most of whom were high ranking, "were reassigned or demoted, or requested new jobs in the past year after they raised concerns about the spending and management of" Pruitt. Those concerns, according to the Times story, included Pruitt's big spending on furniture for his office and his travel.
And on Friday, The Associated Press reported that the EPA has spent millions of dollars for a 20-member security detail for Pruitt that has guarded him on trips which included a family visit to Disneyland and the Rose Bowl college football game.
The EPA has said that Pruitt's large security detail, which dwarfs that of his predecessors, is necessary because of an "unprecedented" number of death threats. The agency had cited those threats as a justification for Pruitt flying first class, a controversial practice he has since abandoned.
David Apol, acting director and general counsel of the Office of Government Ethics, in his letter to Minoli said the reported actions of Pruitt "raise concerns and may constitute a violation of the Standards of Ethical Conduct for Employees of the Executive Branch."
Apol wrote that "our understanding" is that Pruitt "apparently did not seek ethics advice prior to entering into the lease" with Vicki Hart on the question of whether the lease's terms "were so favorable as to be a gift from the lobbyist."
"Only after the existence of the lease was reported in the press did he provide EPA ethics advisors with limited information about the lease," Apol wrote. "He then received, based on the incomplete information he provided, an after-the-fact opinion that the lease did not constitute a gift."
"Additional information has now come to light that calls into question whether the earlier determination that the Administrator paid market value for the use he made of the apartment would still be valid," Apol wrote.
The ethics official wrote that while "appropriate use of scarce government resources is beyond the purview of OGE," reports about Pruitt making frequent official trips to his home state of Oklahoma "to offset the expense of returning home for personal and political reasons" raise concerns about whether he is using his office "for personal gain in violation of ethics rules."
"Finally, there are extremely concerning reports that the Administrator has reassigned or demoted staff who were attempting to ensure that the expenses and other actions were in accordance with laws and regulations," Apol wrote.
"If true, it is hard to imagine any action that could more effectively undermine an agency's integrity than punishing or marginalizing employees who strive to ensure compliance with the laws and regulations that safeguard that integrity."
Apol said OGE "expects that the EPA will review and analyze the alleged conduct."
He noted that the EPA's Office of Inspector General is already reviewing requests to probe at least some of the issues.
"If a violation is found, OGE expects that appropriate action will be taken in response," Apol wrote.
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6da818bf59eaaf27fd9cf77b391e6eea | https://www.cnbc.com/2018/04/09/twice-blessed-stocks-when-the-charts-and-the-fundamentals-align.html | Twice-blessed stocks: When the charts and the fundamentals align | Twice-blessed stocks: When the charts and the fundamentals align
VIDEO1:4801:48‘Twice-blessed’ stocks: When the charts and the fundamentals alignTrading Nation
With these stocks, you might be able to have your cake and eat it, too.
Piper Jaffray sees some companies boasting bullish technical and fundamental outlooks.
Anadarko, PVH Corporation and Palo Alto Networks are its top picks, carrying overweight ratings — a minimum of 10 percent upside based upon the analysts' most recent price targets, and several positive technical indicators in the charts.
Chief market technician Craig Johnson told "Trading Nation" why these three culled from his proprietary list could be smart picks. Here are his reasons why.
• Cybersecurity stock Palo Alto Networks, from a fundamental perspective, has reported solid results and technically has reversed a major downtrend. On another technical note, the stock is showing improving relative strength. The stock has gained 34 percent this year.
• Energy company Anadarko Petroleum has a strong free cash flow and is technically showing a multiyear ascending triangle, with the next resistance coming in at $74 per share. The stock is up nearly 10 percent this year, above $58 a share in Monday's premarket.
• Piper Jaffray forecasts retail name PVH giving conservative forward 2019 guidance, and is a "solid beat-and-raise story." From a technical picture, the stock has successfully retested uptrend support and is poised for a new leg higher. Shares have risen 14 percent this year.
Bottom line: Piper Jaffray is recommending a handful of stocks sharing strong technical and fundamental outlooks.
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f0a03cef1ad1651bd2e082d3094eebc8 | https://www.cnbc.com/2018/04/10/ant-financial-to-raise-9-billion-at-a-150-billion-valuation.html | Ant Financial reportedly raising $9 billion at a $150 billion valuation | Ant Financial reportedly raising $9 billion at a $150 billion valuation
An employee scans a quick response (QR) code displayed on the Ant Financial Services Group's Alipay app, an affiliate of Alibaba Group Holding.Anthony Kwan | Bloomberg | Getty Images
Alibaba affiliate Ant Financial is looking to raise $9 billion in a private funding round, the Wall Street Journal reported Tuesday.
Ant Financial owns one of China's largest payment platforms called Alipay.
The funding round could value Ant at close to $150 billion, according to the WSJ, citing people familiar with the matter. This valuation would make Ant Financial the most valuable private tech company in the world, ahead of Uber.
A spokesperson for Ant Financial declined to comment when contacted by CNBC.
The $9 billion funding round ups a previous target of $5 billion. The last time Ant Financial raised money in the form of equity was in 2016, when it secured $4 billion, giving it a valuation of $60 billion, a source told CNBC at the time.
Ant Financial has been expanding aggressively outside of its home market of China into Europe and other parts of Asia. In Europe, Ant has struck deals with major institutions like BNP Paribas to help more merchants accept Alipay, mainly for Chinese visitors abroad.
Part of its expansion has meant investing and acquiring companies. Ant has previously invested in Paytm in India and recently bought helloPay in Singapore. In the U.S., Ant Financial announced it was buying cross-border payment service MoneyGram for $1.2 billion, though the deal eventually fell through.
Read the full WSJ story here.
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9183f2b6b0b531621f8383956e379230 | https://www.cnbc.com/2018/04/10/facebook-cambridge-analytica-a-timeline-of-the-data-hijacking-scandal.html | Facebook-Cambridge Analytica: A timeline of the data hijacking scandal | Facebook-Cambridge Analytica: A timeline of the data hijacking scandal
Facebook is desperately trying to mend its damaged reputation following the continued fallout of a massive data scandal.
Alongside London-based elections consultancy Cambridge Analytica, the social media giant is at the center of an ongoing dispute over the alleged harvesting and use of personal data. The allegations have heightened concerns over whether such data was then used to try and influence the outcome of the 2016 U.S. presidential election and the Brexit vote.
Ahead of Facebook founder and CEO Mark Zuckerberg's appearance on Capitol Hill on Tuesday, CNBC takes a look at exactly how the tech behemoth ended up in the midst of a media firestorm.
In April 2010, Facebook announced the launch of a platform called Open Graph to third-party apps. This update allowed external developers to reach out to Facebook users and request permission to access a large chunk of their personal data — and, crucially, to access their Facebook friends' personal data too.
If accepted, these apps would then have access to a user's name, gender, location, birthday, education, political preferences, relationship status, religious views, online chat status and more. In fact, with additional permissions, external sites could also gain access to a person's private messages.
Less than five weeks after Facebook launched Open Graph API version 1.0 for developers, Zuckerberg wrote an op-ed for The Washington Post in which he vowed to resolve users' concerns about how their personal information was being managed.
He said: "We have also heard that some people don't understand how their personal information is used and worry that it is shared in ways they don't want. I'd like to clear that up now."
Cambridge academic Aleksandr Kogan and his company Global Science Research created an app called "thisisyourdigitallife" in 2013. The app prompted users to answer questions for a psychological profile.
Signs for company Cambridge Analytica in the lobby of the building in which they are based on March 21, 2018 in London, England.Getty Images
Almost 300,000 users were thought to have been paid to take the psychological test — with the app then harvesting their personal data. It also gathered data from their Facebook friends, which reportedly resulted in Kogan having access to the data of millions of Facebook profiles.
In 2014, Facebook adapted its rules to limit a developer's access to user data. This change was made to ensure a third-party was not able to access a user's friends' data without gaining permission first.
However, the rule changes were not retroactively imposed— and Kogan did not delete the data thought to have been improperly acquired.
In late 2015, The Guardian reported that Cambridge Analytica was helping Ted Cruz's presidential campaign. The report suggested the Republican candidate was using psychological data based on research spanning tens of millions of Facebook users in an attempt to gain an advantage over his political rivals — including Donald Trump.
Republican presidential candidates businessman Donald Trump (L) and Texas Sen. Ted Cruz shake hands before the start of the Republican Presidential Debate in Las Vegas on Dec. 15, 2015.Robyn Beck | AFP | Getty Images
In response to the story, Facebook said that when it learned about the data leaks, it sought to ban Kogan's app and legally pressured both Kogan and Cambridge Analytica to remove all of the data they had improperly acquired. The social media giant claims both Kogan and the London-based elections consultancy firm certified that the data had been deleted.
Ahead of the U.S. presidential election, Trump's campaign team began investing heavily in Facebook ads. The move involved the help of Cambridge Analytica and — during an undercover sting operation — the company's managing director, Mark Turnbull, told Britain's Channel 4 News that the firm was responsible for the "Defeat Crooked Hilary" video campaign on Facebook.
In an explosive expose published in mid-March, The Guardian and The New York Times initially reported that 50 million Facebook profiles were harvested for Cambridge Analytica in a major data scandal. This number was later revised to as many as 87 million Facebook profiles.
The articles sought to outline how the data of millions of Facebook users ended up being given to Cambridge Analytica.
Whistleblower Christopher Wylie on March 26, 2018, in London, England.Dan Kitwood | Getty Images
Christopher Wylie, a co-founder of the political data analytics firm, revealed the alleged practices to both newspapers. Wylie claimed the data sold to Cambridge Analytica was then used to develop "psychographic" profiles of people and deliver pro-Trump material to them online.
Cambridge Analytica has since denied any of Kogan's data was used in connection to the Trump campaign.
The Federal Trade Commission (FTC) opened an investigation into whether Facebook had violated a settlement reached with the U.S. government agency in 2011 over user privacy protections.
Meanwhile, U.S. lawmakers urged Zuckerberg to testify before Congress.
In a Facebook post published several days after the initial reports, Zuckerberg eventually responded to the continued fallout over the data scandal.
He said: "We have a responsibility to protect your data, and if we can't then we don't deserve to serve you. I've been working to understand exactly what happened and how to make sure this doesn't happen again."
Mark Zuckerberg, chief executive officer and founder of FacebookGetty Images
Zuckerberg also announced the social media giant would no longer allow app developers to access its users' data after three months of inactivity and it would reduce the amount of information people are required to hand over to third parties. Facebook would also look to audit all apps with access to large amounts of data before 2014, he added.
Around two weeks after the reports were published, Zuckerberg took out full-page ads in a number of British and American newspapers to apologize for a "breach of trust."
"I'm sorry we didn't do more at the time. We're now taking steps to ensure this doesn't happen again," he said in ads appearing in The New York Times, The Washington Post and The Wall Street Journal in the U.S., as well as in the U.K.'s The Observer, The Sunday Times, The Mail on Sunday, Sunday Mirror, Sunday Express and The Sunday Telegraph.
Zuckerberg is scheduled to appear before a joint hearing of the Senate Judiciary and Commerce committees on Tuesday. It is one of two Capitol Hill appearances for the Facebook founder and CEO this week, with Zuckerberg due to appear before the House Energy and Commerce Committee on Wednesday.
In prepared remarks, Zuckerberg said: "Over the past few weeks, we've been working to understand exactly what happened with Cambridge Analytica and taking steps to make sure this doesn't happen again."
VIDEO1:2001:20Here's everything you need to know about the Cambridge Analytica scandal.CNBC Reports
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6cfaf38c6ba2aa3bbd54d532d6ab0470 | https://www.cnbc.com/2018/04/10/someones-dressed-as-a-russian-troll-at-zuckerbergs-facebook-hearing-in-the-senate.html | Someone's dressed as a 'Russian troll' at Zuckerberg's Facebook hearing in the Senate | Someone's dressed as a 'Russian troll' at Zuckerberg's Facebook hearing in the Senate
Yes, that is a "Russian troll" in the audience of Tuesday's Senate hearing on the Facebook data leak.
Specifically, it is consumer activist Amanda Werner dressed in a foot-and-a-half-high turquoise troll wig, Russia flag scarf and belly button jewel.
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Werner, a campaign strategist at Public Citizen, is attending the hearing where Facebook founder Mark Zuckerberg is testifying to draw attention to the social network's failure to stop the misuse of its site during the 2016 presidential election.
Zuckerberg "confirmed that Russian troll farms reached 126 million Facebook users," Werner said in a statement. "Since Zuckerberg allowed millions of Russian trolls to undermine our democracy, I assume he won't mind if one Russian troll undermines his credibility."
Last year, Werner dressed as the Monopoly man and sat behind former Equifax CEO Richard Smith during his Senate hearing. Then, she was protesting common industry rules that force consumers to settle disputes with financial companies in arbitration rather than court. Smith was testifying about Equifax's massive data breach affecting more than 145 million people.
Zuckerberg is on Capitol Hill this week to answer questions about the data leak affecting 67 million Facebook users. Werner told CNBC in a direct message on Twitter that her costume was definitely drawing attention on the Hill, where a police officer told her to remove her headscarf.
She tweeted before and during the hearing.
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29b519583637e025d7b2a319221b4299 | https://www.cnbc.com/2018/04/10/this-airline-is-set-to-soar-on-earnings-this-week-traders.html | This airline is set to soar on earnings this week, according to some traders | This airline is set to soar on earnings this week, according to some traders
VIDEO1:1401:14Options traders betting this airline will fly high on earnings this weekOptions Action
Shares of Delta could fly high when it reports earnings this week, according to some traders.
The Atlanta-based airline is scheduled to announce first-quarter earnings before the bell Thursday, and the options market is implying a 4 percent move for the stock in either direction. Delta's shares have struggled to take off this year, now down more than 6 percent since January.
However, "Options Action" trader Mike Khouw says there could be signs of resurgence ahead. "Delta is liked a lot by options traders," Khouw said Monday on CNBC's "Fast Money." "We saw about 3-to-1 calls over put volume."
On Monday, a number of traders also bought the June 52.5 call options for an average of $3.50 per contract. "Those are bullish bets that Delta will be up about 5 percent by June expiration," Khouw said.
Despite struggling to make gains for the year, shares of Delta are still up nearly 17 percent in the last 12 months. Of the 17 FactSet analysts covering the stock, 15 have it listed with a buy rating, with an average price target of $72.56. That would imply a gain of about 40 percent for the shares from their current levels.
Last quarter the airline beat on both revenue and earnings-per-share expectations, while also raising its guidance for 2018. Delta citing savings under the new tax law, as well as an increase in consumer demand as catalysts for growth.
Shares of Delta were higher midmorning Tuesday, trading at $52.20.
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ca5062dd5bbff1682c8e9fcf75643dc0 | https://www.cnbc.com/2018/04/10/zuckerberg-says-facebook-is-working-with-special-counsel-mueller-in-probe.html | Zuckerberg says Facebook is working with special counsel Mueller in probe | Zuckerberg says Facebook is working with special counsel Mueller in probe
VIDEO5:1705:17Zuckerberg: We're working with the Special CounselClosing Bell
Facebook CEO Mark Zuckerberg testified to a joint hearing of the Senate Judiciary and Commerce committees Tuesday that Facebook is cooperating with special counsel Robert Mueller's investigation.
"I know we are working with them," Zuckerberg said.
When asked by Sen. Patrick Leahy, D-Vt., about Facebook's involvement with Mueller's investigation, Zuckerberg confirmed the cooperation but refused to divulge additional information.
"I want to be careful here, because that work is confidential. We are in open session and I don't want to reveal anything that is confidential," Zuckerberg said.
The CEO clarified that he had not personally been interviewed by Mueller's team but that others in the company had. When asked if Facebook had been issued a subpoena, Zuckerberg first said it had, before backpedaling.
Facebook co-founder, Chairman and CEO Mark Zuckerberg testifies before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC.Zach Gibson | Getty Images
"I have to clarify that I'm not sure that there are subpoenas, there may be," he said.
The company is facing questions following reports that research firm Cambridge Analytica improperly gained access to the personal data of as many as 87 million Facebook users.
Zuckerberg is likely to face tough questions on user privacy, foreign meddling on the site and abuse of social media tools.
He's scheduled to testify before the House Energy and Commerce Committee Wednesday. His prepared remarks for that hearing were released Monday.
Watch the live stream of Zuckerberg's testimony.
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e2b848d9867deef4609cab594f749b9d | https://www.cnbc.com/2018/04/11/black-panther-box-office-to-give-big-boost-to-disneys-bottom-line-jp-morgan.html | 'Black Panther' box office to give big boost to Disney's bottom line: JP Morgan | 'Black Panther' box office to give big boost to Disney's bottom line: JP Morgan
A promotion image from Marvel's 2018 hit "The Black Panther".Source: Marvel
Disney's latest new superhero movie franchise is performing better than a top Wall Street firm ever imagined.
J.P. Morgan raised its fiscal second-quarter earnings-per-share estimate for Disney shares to $1.68 from $1.57.
The increase is "primarily due to the much stronger-than-expected performance of Black Panther," analyst Alexia Quadrani wrote in a note to clients Wednesday. "We believe the strength of Black Panther was largely unanticipated and therefore the company likely did not have adequate inventory to meet demand, limiting upside in the quarter" for its consumer products business.
The analyst said "Black Panther" generated $1.3 billion in ticket sales so far versus her previous forecast of $775 million. She is optimistic about Disney's film slate over the next few months such as "Avengers: Infinity War" later this month, "Solo: A Star Wars Story" in May and "The Incredibles 2" in June.
"We are encouraged by this positive estimate revision and expect healthy adj. EPS growth in F2018E led by ongoing Parks strength across both domestic and international and a much more favorable Studio slate that should help fuel healthier Consumer Products growth later this year," she wrote.
J.P. Morgan does not currently have a rating for Disney shares because it is acting as financial adviser for the media company.
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9bfd9a228bf5bdd9a2f0eb97872087f7 | https://www.cnbc.com/2018/04/11/blackrocks-gun-free-funds-show-ethical-investing-is-a-good-bet.html | BlackRock’s gun-free funds show ethical investing is a good bet | BlackRock’s gun-free funds show ethical investing is a good bet
Americans fed up with gun violence now have the chance to speak with their purses. Last week, BlackRock, the world's largest investment manager, said it was creating several options for investors who want to avoid AR-15 rifles and other civilian firearms.
Gunmakers and most gun retailers will now be excluded from BlackRock's broader socially responsible mutual and exchange traded funds. Such funds have historically excluded companies that make cluster bombs, nuclear reactors and cigarettes, while favouring companies that are rated socially responsible. BlackRock's institutional investors will be offered an even more targeted option: they can screen gun stocks out of their endowments and include gun-free index funds in their employees' pension plan choices without going the whole hog on ethical investing.
This level of pointed shunning is unprecedented for BlackRock. The investment manager began looking at the issue after the February massacre of 17 people at Marjory Stoneman Douglas High School in Florida sparked widespread protests against the US's lax gun laws. The move also comes shortly after BlackRock's chief executive, Larry Fink, warned companies that financial performance was not enough — they must also "make a positive contribution to society".
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That is a noble idea, but investors have long been wary about the potential impact on their portfolios of trying to do good, while also doing well financially.
"Sin stocks" — companies that sell alcohol, tobacco, weapons and gambling — have historically done better than the broader market. And Norway's recent experience tends to back this up. Its sovereign wealth fund began excluding such stocks from its broad based equity investments in 2004. That decision has cost it about 0.1 percentage points a year. On the other hand, the fund calculated that excluding individual companies over specific environmental, human rights and other ethical issues had boosted its returns by 0.04 percentage points annually. Over a 12-year period, the fund estimated that ethical investing cut returns by 1.6 per cent compared with its equity benchmark.
Norway believes that pressing its ethical agenda has been more than worth the small amount of lost earnings — the finance ministry expanded its ban to include big coal producers in 2016. It is debating whether to add oil companies to the list for financial reasons.
More and more investors are starting to follow their lead. The Global Sustainable Investment Alliance's last review found, in 2016, that nearly $23tn in assets were being managed under environmental, social and governance criteria, up 25 per cent from 2014.
These "ESG" strategies are not only becoming more popular, but also more sophisticated. For investors who want to follow their principles, but also track an index, portfolio managers are finding ways to "optimise" ESG funds by replacing excluded companies with additional exposure to groups with similar characteristics, but which do better on ethical and governance scorecards.
BlackRock found that it could improve a portfolio's ESG rating by one level (from triple B to A) and keep the tracking error below 10 basis points. A two-level increase to AA led to a 50 bps tracking error. And a 2017 study by Robeco, another asset manager, found sin stock outperformance could be replicated by screening for other kinds of investment factors, such as high profit margins.
In the case of US firearms stocks, investors who want to follow their principles and avoid the sector may be taking less risk than they once feared. After all, the US retail sector is struggling, including some of the most prominent owners of stores that sell guns: shares in Walmart, Kroger and Camping World are each down more than 15 per cent since the Parkland shooting, and Remington, a prominent gunmaker, declared bankruptcy in March.
More from the Financial Times:US inflation climbs at fastest pace in more than a year in MarchTrump believes he has power to fire Mueller, says White HouseLawyer in Mueller probe sentenced to 30 days jail
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3ddd07e7edbce2347736961bd56413e3 | https://www.cnbc.com/2018/04/11/frances-macron-locked-in-an-existential-battle-against-trade-unions-strategist-says.html | France's Macron locked in an 'existential battle' against trade unions, strategist says | France's Macron locked in an 'existential battle' against trade unions, strategist says
VIDEO2:4102:41It's a fertile environment for a reform in France, says analystSquawk Box Europe
French President Emmanuel Macron could soon see his hopes of flagship labor market reforms derailed by trade union protests, according to one political strategist.
Ahead of his first anniversary as France's premier, Macron is facing rolling strikes by rail workers over a shake-up of the debt-ridden state-owned SNCF, student protests over higher education reform and escalating levels of discontent among pensioners over higher social security charges.
"I think there has never been such a fertile environment for reform. Macron knows this and I think trade unions know this," Antonio Barroso, managing director of Teneo Intelligence, told CNBC's "Squawk Box Europe" on Wednesday.
"In isolation, (trade union) actions do not create a considerable risk for Macron. Rather, the main problem would be the coalescence of different protests into a bigger movement against his policies, thus undermining his political capital to pass reforms in other areas such as pensions," he added.
On Tuesday, seven main public sector trade unions called for a one-day strike in May, broadening the scope of the dispute over Macron's plans to reform the euro zone's second-biggest economy.
Should the strikes go ahead, it would mark the third day-long walkout by teachers, civil servants and other public sector employees in less than six months. It comes as Macron seeks to implement plans to cut more than 100,000 public sector staff and link pay awards to performance.
President of the political movement 'En Marche !' (Onwards !) and French presidential election candidate Emmanuel Macron meets strike employees of Whirlpool on April 26, 2017 in Amiens, France.Chesnot | Getty Images
"Our organizations do not share the objectives pursued by the government, which involve reducing the scope of the public sector with a view to abandoning or even privatizing departments," the unions said in a joint statement Tuesday, Reuters reported.
Macron's administration has previously said that reforms are necessary because the changes will reduce costs while ultimately improving efficiency.
The last major public sector strike in France was in 1995. The then-prime minister, Alain Juppe, attempted a wide program of welfare cutbacks but was forced into a climb-down after railway workers downed tools over his plans to end the right to retire at 55.
"Despite the trade unions' initial success, the government is unlikely to backtrack on its plans. The overhaul of the SNCF has become the litmus test for Macron's ability to introduce changes in sectors that have traditionally been considered unreformable; back-pedaling would only embolden trade unions to block reforms in other areas such as pensions," Teneo Intelligence's Barroso said.
— CNBC's David Reid contributed to this report.
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47556740a832790ae68b040156663293 | https://www.cnbc.com/2018/04/11/oil-surges-but-middle-east-military-actions-have-been-bad-for-energy.html | Oil surges on threat of Middle East strike, but real military action has been bad for energy | Oil surges on threat of Middle East strike, but real military action has been bad for energy
The Eagle Ford crude oil tanker sails out of the the NuStar Energy dock at the Port of Corpus Christi in Corpus Christi, Texas, U.S., on Thursday, Jan. 7, 2016.Eddie Seal | Bloomberg | Getty Images
Crude oil surged near-2 percent on Wednesday, to a level it had not touched since December 2014, and the energy sector moved higher even as the stock market fell.
The moves came after President Donald Trump tweeted a threat about the U.S. military launching missiles strikes against Syria. All the S&P 500 sectors closed lower on Wednesday except for energy.
Tweet
The Select Sector Energy SPDR (XLE) ended the day 1 percent higher. But if the U.S. actually follows through on Trump's threat, history shows the rally in oil and energy may not last.
Geopolitical tensions have historically lifted energy sector stocks and defense and aerospace stocks. But history also shows that actual military action has been followed by underperformance from the energy sector relative to other sectors of the U.S. stock market and the S&P 500.
Data from hedge fund analytical tool Kensho that examined patterns coinciding with U.S. military actions in the Middle East dating back to the 1990s show that in the day, week and month after a Mideast strike, oil has underperformed other assets, and the energy sector has been one of the worst in the S&P 500.
XLU: Utilities Select Sector SPDRXLV: Healthcare Select Sector SPDRXLY: Consumer Discretionary Select Sector SPDRXLB: Materials Select Sector SPDR
XLV: Healthcare Select Sector SPDRXLB: Materials Select Sector SPDRXLY: Consumer Discretionary Select Sector SPDRXLU: Utilities Select Sector SPDR
XLV: Healthcare Select Sector SPDRXLF: Financial Select Sector SPDRXLP: Consumer Staples Select Sector SPDR
The sector ETFs have been trading across 24 of the 32 attacks tracked by Kensho dating back to 1982. In addition to the underperformance from the energy sector after U.S. military strikes in the Mideast, big oil stocks like Exxon Mobil and Chevron, which have a longer history than the ETFs, as well as the price of crude oil, have also trailed the market.
Disclosure: NBCUniversal was a minority investor in Kensho prior to the firm being acquired by S&P.
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47e15493a9071b44e9e0a9a962947158 | https://www.cnbc.com/2018/04/11/portugal-is-set-to-break-away-from-a-25-year-long-deficit.html?__source=fincont&par=fincont | Portugal is set to break away from a 25-year long budget deficit | Portugal is set to break away from a 25-year long budget deficit
The Portuguese government could soon end 25 consecutive years of budget deficits — a historic moment for the indebted economy.
Portugal has been in financial trouble since the sovereign debt crisis of 2011. Several years of economic mismanagement led to very high debt levels and raised market fears that the country would not be able to repay its loans. The difficulties in getting money from the market forced Portugal to ask for financial assistance that same year.
But four years after ending a bailout program, the Portuguese government is now forecasting a budget surplus — when state expenditure is lower than revenues. According to the Finance Ministry, there will be a surplus of 0.25 percent of gross domestic product (GDP) in 2020 — a year ahead of schedule.
This is, according to the European statistics office Eurostat, an accomplishment that the southern European nation has never managed since records began in 1995. Eurostat will confirm the final 2017 figures in late April.
Analysts claim the Portuguese projections are "realistic" for 2020 as Lisbon has managed to reduce its deficit over the last few years. But cautioned against potential risks.
"Portugal shows today its best economic and financial performance in several decades," Finance Minister Mario Centeno said in late March, when presenting the current state of the country's finances.
A worker inspects Helix cork stoppers, which can be opened by hand and re-sealed, during quality control checks at the Amorim & Irmaos SA, factory,Paulo Duarte | Bloomberg | Getty Images
"The upgrade of Portugal's credit rating by S&P and Fitch, combined with the already-large reduction in Portugal's budget deficit and its exit from the EU's fiscal watchlist, are reducing Portugal's borrowing costs and interest payments, and this will help it reach its budget target sooner," Ben Robinson, senior economist at the think tank OMFIF (Official Monetary and Financial Institutions Forum), told CNBC in an email.
Data from the Portuguese Finance Ministry showed that the country paid less than 300 million euros ($368.49 million) in interest on its sovereign debt between 2016 and 2017 due to the increasingly optimistic views from the ratings agencies.
The improvements in Portugal's general budget balance have been rather remarkable.Maartje WijffelaarsEconomist at Rabobank
Fitch and S&P joined DBRS at the end of 2017 in giving Portugal's debt an "investment grade" after years of considering it "junk." They recognized that after the bailout program, which ended in 2014, the economy has recovered and is set to continue growing over the coming years. The employment rate has improved as well as its debt levels, the credit rating agencies said at the time.
Portugal's structural deficit — which does not include one-off hits — is expected to be 1 percent of GDP in 2017, according to the latest government figures. In 2016, this had been 1.8 percent of GDP.
Such an improvement has made investors more confident on Portugal's ability to repay its debts.
"The strong improvement of the budget balance in 2017 was to a large extent the result of the improving economic environment," Maartje Wijffelaars, an economist at Rabobank, told CNBC via email.
Such improvement, she said, "has led to higher social contributions and tax revenues and lower spending on unemployment benefits for example."
VIDEO3:2803:28Don't expect European Parliament elections to impact monetary union reform: CentenoSquawk Box Europe
Portugal grew 2.7 percent in 2017, according to data from the Finance Ministry. The positive momentum across the euro zone boosted confidence among the Portuguese. However, employment growth — it rose 3.2 percent in 2017, high foreign investment in the real estate market and strong tourism figures have also led to a strong domestic demand.
"Centeno and his government should get credit," Wijffelaars said about the way Portugal has managed to keep a cap on the increase in public sector pay.
"The improvements in Portugal's general budget balance have been rather remarkable," she said. "Going forward it's important that the government does more to also improve the structural budget balance. It can't depend on everlasting strong economic growth to improve its fiscal balance."
The Portuguese economy has improved but analysts believe there are still several risks that cannot be excluded.
"Structural reform has been quite slow," Robinson from OMFIF told CNBC, in reference to the past few years following the end of the bailout and when the ruling socialist party took office.
When compared with the rest of the euro zone, Portugal still has one of the highest levels of non-performing loans in its banking sector. This ratio stood at 14.6 percent in the third quarter of 2017; from 17.7 percent in the same period of 2016.
Horacio Villalobos | Corbis | Corbis | Getty Images
The banking system is still calling for further action. Novo Banco, the bank that was built with the good assets of the collapsed Banco Espirito Santo, reported a net loss of 1.4 billion euros for 2017 — nearly doubling its loss registered in 2016.
As a result, the bank will need further capital, part of which will come from a government loan — meaning that taxpayers' money will be used once again to support the banking system.
At the same time, Robinson warned that the European Central Bank is slightly reducing its bond purchases, which could mean higher borrowing costs for euro zone countries in the future.
Though "the ECB has been under-purchasing Portuguese bonds," he said, "it is likely to be relatively less badly-affected by the end of quantitative easing than others, such as Italy."
This is because the ECB faces a couple of restrictions when buying government bonds. For example, the central bank cannot hold more than a third of a country's outstanding debt.
With more sound public finances, "Portugal can once again face the future with optimism," Centeno said last month. He reassured that the country will continue following this path towards a better fiscal performance.
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39d7242e1a94b60db915b8551748eb57 | https://www.cnbc.com/2018/04/11/trump-economic-advisor-larry-kudlow-tariffs-might-come-before-negotiations-with-china.html | Trump economic advisor Larry Kudlow: Tariffs might come before negotiations with China | Trump economic advisor Larry Kudlow: Tariffs might come before negotiations with China
VIDEO4:3804:38NEC Director Kudlow: China has been stealing the US's technologyClosing Bell
The latest move by China in the escalating trade conflict with the United States was "very positive," but that doesn't necessarily mean that tariffs won't happen before negotiations occur, top Trump economic advisor Larry Kudlow told CNBC on Wednesday.
The two countries have announced tit-for-tat tariff plans against each other. However, on Tuesday, Chinese President Xi Jinping said he plans to open up China's economy, including lowering tariffs for autos and other products and improving intellectual property protection for foreign firms.
"I think what's going to happen is we are going to have negotiations at some point. There may be tariffs before, maybe not. We shouldn't panic," Kudlow, director of the National Economic Council, said on "Closing Bell."
He added, "So far there have been no tariffs implemented. … and you're not going to see any of that for probably a couple of months."
President Donald Trump unveiled a list of Chinese imports last week that his administration aims to target as part of its crackdown on trade with China. Shortly after the announcement, the Asian nation announced additional tariffs. That led Trump to threaten another $100 billion in tariffs on Chinese goods, to which China responded by saying it would "fight back with a major response" if provoked.
The back-and-forth rhetoric fueled concern among investors about a possible trade war. However that concern appeared to ease after Xi's comments Tuesday.
"China does not seek [a] trade surplus. We have a genuine desire to increase imports and achieve greater balance of international payments under the current account," Xi said, according to a translation of his speech.
Kudlow believes it's important to "clean up" the issue of China's alleged theft of intellectual property from U.S firms, noting that "China's the problem, not Trump."
However, he urged everyone to "calmly look" at the overall trade issue.
"I'm always an optimist that where there's a will there's a way and I believe both presidents want to get something good done," Kudlow said.
— CNBC's Everett Rosenfeld and Huileng Tan contributed to this report.
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6ccb9d43acf48cd55f3e101509219566 | https://www.cnbc.com/2018/04/11/watch-mark-zuckerbergs-second-day-of-testimony-before-congress.html | Watch Mark Zuckerberg's second day of testimony before Congress | Watch Mark Zuckerberg's second day of testimony before Congress
Mark Zuckerberg is testifying before the House Energy and Commerce Committee Wednesday in the second day of congressional hearings for the Facebook founder and CEO.
He appeared at a joint hearing of the Senate Judiciary and Commerce committees Tuesday. You can read CNBC's coverage of that hearing at the links below:
Mark Zuckerberg says Facebook didn't notify FTC of leak: 'We considered it a closed case'Zuckerberg says Facebook is working with special counsel Mueller in probe'This is an arms race': Zuckerberg has 'confidence' Facebook will handle 2018 election meddlingMark Zuckerberg: 'There will always be a version of Facebook that is free'Facebook shares have best day in 2 years'You don't think you're a monopoly?' Read Sen. Graham's questioning of Facebook CEO Mark ZuckerbergZuckerberg: There's been no dramatic drop-off in users despite 'Delete Facebook' memesSenator to Zuckerberg: 'Your user agreement sucks'
The company is facing questions following reports that research firm Cambridge Analytica improperly gained access to the personal data of as many as 87 million Facebook users.
Zuckerberg's prepared remarks for Wednesday's hearing were released Monday. Zuckerberg is likely to face more tough questions on user privacy, foreign meddling on the site and abuse of social media tools.
[The stream is slated to start at 10 a.m. ET. Please refresh the page if you do not see a player above at that time.]
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02b5ca14707db1ffeb21161869784f47 | https://www.cnbc.com/2018/04/11/zuckerberg-says-you-control-your-facebook-info-but-its-complicated.html | Zuckerberg says you control your Facebook info — but it's much more complicated than he says | Zuckerberg says you control your Facebook info — but it's much more complicated than he says
Facebook co-founder, Chairman and CEO Mark Zuckerberg testifies before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC.Chip Somodevilla | Getty Images
During his testimony before Congress on Tuesday and Wednesday, Facebook CEO Mark Zuckerberg has repeatedly suggested that Facebook users have complete control over the information they share with Facebook.
But it's much more complicated than what he implies.
Here's an example of a talking point Zuckerberg has been repeating in various forms:
"It's really important for the service that people understand what they're doing and signing up for and how the service works. We have laid out all of what we do in the terms of service because that's what's legally required for us," Zuckerberg said. "Every single time that you share something on Facebook or one of our services, right there is a control in line where you control who you want to share with."
It's true that when you post a picture or thought to Facebook, you can choose whether you're sharing it with the public, friends, specific friends or only with yourself.
This is what he's referencing:
Facebook says it gives you full control over who sees what, but that's not true.Todd Haselton | CNBC
But Zuckerberg's suggestion that this dialog box gives users complete control is misleading.
This is why Zuckerberg was called to Capitol Hill in the first place: Users haven't had and still don't have an easy way to control who sees their data after it's been posted to Facebook.
Cambridge Analytica, for example, was able to obtain information on as many as 87 million Facebook users after just 270,000 people downloaded and interacted with a quiz. (Here's how to find out if you were one of them.)
While this occurred several years ago, and Facebook says it has made changes to prevent this sort of leak, there are more than 86 million people who never intended to have their data shared with a third party. However, because a friend of those users took a quiz, that data was shared elsewhere.
At the time, there was no setting to prevent that.
Facebook is still trying to figure out other firms that might have gotten access to personal user data in similar ways, which means it has no idea who might currently have your private information. For example, the company suspended another data analytics firm named CubeYou only after CNBC revealed that the firm was running a quiz that was also collecting user data.
In order to protect yourself better from these sorts of invasions, you do need to dig deeper — much deeper than Zuckerberg suggests — into your Facebook settings.
You need to manage the applications that can see your data, opt out of settings that provide your data to advertisers, and make other tweaks to your privacy settings. You need to do this:
1. Manage the apps that have access to your Facebook data
On desktop or in the mobile app, tap the drop-down menu on the top-right side of Facebook and select "Settings."Select the "Apps" option. This is on the left side of the page on desktop. On mobile, simply scroll down the settings page.Select "Edit" to control privacy settings, or delete to remove the apps entirely.
2. Opt out of settings that provide your data to advertisers
On desktop or in the mobile app, tap the drop-down menu on the top-right side of Facebook and select "Settings."Select "Ads" on the left.Open the "Your Information" tab and turn off every setting that shares your relationship status, employer, job title, education and interests.Tap "Ad Settings" and turn off the option to share your website, app and social actions with advertisers.
3. Change your privacy settings
On desktop or in the mobile app, tap the drop-down menu on the top-right side of Facebook and select "Settings."'Select "Privacy" from the left menu.Make sure only friends can see your friends list, your email address, your phone number and your Facebook profile.
Facebook, for its part, needs to make these options much easier to find, a point that both the House Energy and Commerce Committee and the Senate Judiciary and Commerce committees have been trying to make to Zuckerberg over the past two days.
VIDEO2:4202:42Zuckerberg: All the same privacy controls will be available around the worldSquawk on the Street
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95ae160c836b06ac45699405db0b3e21 | https://www.cnbc.com/2018/04/12/bank-earnings-are-coming-and-theyre-going-to-be-huge.html | Bank earnings are coming, and they're going to be huge | Bank earnings are coming, and they're going to be huge
VIDEO9:5509:55Cramer: This is the most important earnings season for the big banks in yearsMad Money with Jim Cramer
Tax cuts, rising interest rates and a general spirit of more robust economic growth are the principal ingredients in what is expected to be an especially powerful profit formula for the banking industry.
As Wall Street's financial giants get set to report first-quarter earnings and provide a look ahead for the days to come, hopes are high. Corporate profits overall are expected to have risen 17 percent for the three-month period, but the financial sector has drawn especially keen interest.
In just the past three months, analysts have more than doubled their expectations for the financial sector as a whole, with banks leading the way.
Bank earnings are "really going to help provide stability to the market," said JJ Kinahan, chief market strategist at TD Ameritrade. "If [J.P. Morgan Chase CEO Jamie] Dimon comes out and says we're not having a problem with tariffs, that's going to be major. ... If CEOs say they see smooth sailing ahead, it could be an unbelievably great time for stocks."
People inside the offices of JP Morgan Chase in New York City.Getty Images
Just since Jan. 1, analyst projections for financial earnings went from a 10.7 percent gain all the way to 24 percent currently. Only energy, which has been the beneficiary of rising oil prices, has seen a higher net revision among the S&P 500's 11 sectors, according to investment research firm CFRA.
With financials comprising 14.7 percent of the index's market cap, the second highest after technology, such a big move could have important market consequences.
After all, the sector, as measured by the Financial Select Sector SPDR exchange-traded fund, is barely flat for 2018 after enjoying a robust run the previous year. A big earnings quarter implies some room for upside based on the stock performance.
CFRA expects banks to lead the way for financials, with earnings growth of 28.5 percent.
Friday will feature reports from Citigroup, JP Morgan Chase, PNC and Wells Fargo. They're expected to show respective earnings-per-share gains of $1.61, $2.28, $2.24 and $1.06, according to FactSet.
Analysts will be combing through the details for indications on where the sector is heading.
"As we head into first-quarter earnings, we still recommend an overweight positioning for Universal Banks, as the fundamental backdrop is still supportive of further share-price appreciation broadly," Brian Kleinhanzl and Michael Brown, analysts at Keefe, Bruyette & Woods, said in a research note. "Net interest margins and loan growth will remain in the forefront as indicators that the fundamental upside for estimates are still possible looking ahead."
Though KBW considers the sector largely a buy, it actually has cut earnings-per-share estimates for most of the banks it covers at a time when other analysts are raising.
Specifically, it has reduced its calls on Bank of New York Mellon, Citigroup, Goldman Sachs, J.P. Morgan Chase and Morgan Stanley. Bank of America and Wells Fargo are unchanged from earlier projections, while KBW has raised estimates for State Street.
Still, the current expectations imply a 15.4 percent share price gain from current levels, the analysts said.
Elsewhere on Wall Street, the mood is essentially upbeat.
Goldman Sachs analysts said they "remain constructive" on the banking sector, with more than half the names in its coverage likely to top EPS estimates. The firm's analysts also see strong net interest margins and tax reform as positives, as well as increased volatility helping trading operations and higher interest rates boosting net interest income though having a negative effect on mortgages.
VIDEO5:4005:40It's judgement day for the rally with the big banks on deck for earningsFast Money
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587833cd663478a7b792f21769865fc2 | https://www.cnbc.com/2018/04/12/broadcom-shares-jump-over-4-percent-on-12-billion-stock-buyback-announcement.html | Broadcom shares jump over 4% on $12 billion stock buyback announcement | Broadcom shares jump over 4% on $12 billion stock buyback announcement
VIDEO0:2300:23Broadcom announces $12 billion buybackClosing Bell
Shares of chipmaker Broadcom jumped 4.41 percent in after-hours trade after the company said on Thursday it would buy back up to $12 billion of its common stock.
The company, which last month ended its efforts to acquire rival Qualcomm, said the authorization of the repurchase program is effective immediately and until the end of its 2019 fiscal year on Nov. 3.
"We are maintaining our policy of delivering 50 percent of trailing 12-month free cash flow to shareholders in the form of dividends while adding the ability to use the balance of our free cash flow not only for acquisitions but also for opportunistic buybacks," said Broadcom Chief Financial Officer Tom Krause in a statement.
-Reuters contributed to this report. Correction: An earlier version of this story misstated the effective date of the share repurchase program. The authorization of the repurchase program is effective immediately and until the end of Broadcom's 2019 fiscal year on Nov. 3.
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3e2cdc8cc957bae33ac98667a7fa32d8 | https://www.cnbc.com/2018/04/12/cramer-remix-amazon-is-the-stock-to-own-when-trump-doesnt-tweet.html | VIDEO1:0501:05Cramer Remix: Amazon is the stock to own when the president doesn’t tweetMad Money with Jim Cramer
As the stock market rose sharply on Thursday, CNBC's Jim Cramer pinpointed a key component of the bull case that helped equities climb. the lack of "explosive" Trump tweets.
"We didn't see a threat to Russia," the "Mad Money" host said. "We didn't get a tweet about an attack on the FBI or special prosecutor Robert Mueller, other than a riposte against the New York Times about what the president called fake reporting."
While Trump's silence on Russia doesn't necessarily mean that the White House won't retaliate against Russia, which may have supported the Syrian regime in a recent chemical attack, stocks certainly benefited from his relatively calm Twitter feed, Cramer said.
Cramer also labeled Amazon "the best stock to own when the president doesn't tweet" thanks to its 1.5 percent jump on Thursday.
National Security Advisor John Bolton (R), listens to U.S. President Donald Trump as he speaks about the FBI raid at lawyer Michael Cohen's office, while receiving a briefing from senior military leaders regarding Syria, in the Cabinet Room, on April 9, 2018 in Washington, DC.Getty Images
To be a good investor, you have to be able to handle uncertainty. But even the most predictable events can lose you money, Cramer warned on Thursday.
From Robert Mueller's investigation into the Trump administration's possible collusion with Russia to the recent gas attack in Syria, Cramer saw potential decline triggers all over the stock market.
"I'm not a political person. It's my job to try to figure out what future events might impact the market," Cramer said. "And if Trump fires Mueller or gets into it with the Russians over Syria, the impact will be negative."
Both events could sidetrack key earnings reports, send interest rates lower and push oil prices higher, creating headwinds for oil-dependent industries and fueling investors' worries, he said.
"I say if you haven't put any money to work during this volatile period, why not wait for a better entry point?" Cramer suggested.
Michael Kneeland, CEO of United Rentals.Adam Jeffery | CNBC
U.S.-China tensions over trade may have abated for now, but with China ready to escalate at any moment, Cramer wanted investors to be prepared for potential pain.
"Stocks like Caterpillar have been rebounding nicely after getting absolutely eviscerated over the past few months. I say wait a second. Not so fast," the "Mad Money" host said.
While shares of Caterpillar have more than tripled since their early 2016 lows and business at the construction equipment giant is booming, Cramer warned that it does a lot of business in China.
And despite the stock's rally after China President Xi Jinping struck a more conciliatory tone on trade in a recent speech, Cramer saw Caterpillar as an obvious target for Chinese retaliation.
"You should swap out of CAT and swap into United Rentals, URI, the big domestic machinery rental play," he recommended. "United Rentals gives you the same great earth-moving and construction equipment exposure that Caterpillar does without any of the China related risk."
Here's why Cramer would buy United Rentals' stock over Caterpillar's.
As a veteran of the technology space, Manny Medina, CEO of privately held cybersecurity company Cyxtera, is seeing global risks abound as the world digitizes.
"The world is extremely dangerous," Medina told Cramer in a Thursday interview. "This is something that is not going to go away. It's going to get continuously worse and worse and worse."
But Cyxtera, which helps companies secure their data infrastructures and conduct cybersecurity-focused analytics, is working to protect the world's excess of information.
"Today, ... you need to use different methods of protecting the different infrastructure. One of the greatest advantages of our software-defined perimeter is that you use the same technology to protect your infrastructure regardless of where it resides," Medina said. "I think there's a whole transformation happening in security and we are very, very glad to be right at the forefront of it."
Europe's General Data Protection Regulation, commonly known as GDPR, is boosting business at software companies like Talend, CEO Mike Tuchen said in a Thursday interview with Cramer.
The regulation, which goes into effect in a month, states that European citizens own their data. As such, any company providing a service using consumer data, like Facebook, doesn't own the data of European citizens, Tuchen explained.
"So if a European citizen says, 'I want to see all the data that you have about me,' they have to show it to them," the CEO said. "We solve exactly that set of problems for companies in Europe. And so what we do is we allow them to pull together all the information they have about their customers in one place."
And even though GDPR was approved in 2015, companies haven't quite gotten to the bottom of how the regulations will affect their businesses. For Tuchen, that's where Talend comes in, and he said it's given business "a bump."
"What's funny is we're seeing companies are really just now getting to the meat of their GDPR phase," Tuchen told Cramer. "For a regulation that goes into force in one month, you'd think that this big push would've happened a year ago. Not really so much. But it is really in full stream right now."
In Cramer's lightning round, he flew through his take on some callers' favorite stocks:
Realty Income Corporation: "Don't need it. Don't need letter O. Don't need it. Don't need a real estate investment trust. I need to have income. I need to have growth. Doesn't have both."
iRobot Corp.: "Last quarter was really bad, man. It was bad. I don't need you in that. That thing is just too hard to own. It's cost a lot of people a lot of money."
Disclosure: Cramer's charitable trust owns shares of Amazon.
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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e8ca4da35f7f27f7caa9c0e527d79790 | https://www.cnbc.com/2018/04/12/gold-on-track-for-second-week-of-gains.html | Gold on track for second weekly gain as Syria concerns linger | Gold on track for second weekly gain as Syria concerns linger
Getty Images
Gold prices rose on Friday, heading for a second weekly gain on lingering uncertainty over Western military action in Syria.
Spot gold was up 0.62 percent at $1,343.41 an ounce at 1:54 p.m. ET, set for a weekly gain of nearly 1 percent. U.S. gold futures for June delivery rose 0.34 percent to $1,346.50.
U.S. President Donald Trump and his national security aides on Thursday discussed options on Syria, where he has threatened missile strikes in response to a suspected poison gas attack, as a Russian envoy voiced fears of wider conflict between Washington and Moscow.
Trump, however, cast doubt over the timing of his threatened strike, tweeting that a U.S. attack "could be very soon or not so soon at all."
Gold is often used as a store of value in times of political and financial uncertainty.
"Donald Trump back-pedaled a bit in his morning tweet yesterday, but the danger is still there that the situation could escalate with Russia due to a military attack on Syria," Quantitative Commodity Research consultant Peter Fertig said.
"We are back at a Cold War, which easily could turn into a hot war if someone loses their nerve - and in such a situation, gold is a haven."
In technicals, first support for gold comes in at $1,315, near the 100-day moving average. A break of this could see gold test the 200-day moving average around $1,300.
Global equities were poised for their biggest weekly gain in more than a month as investors shrugged off the geopolitical tensions. Easing concerns over the trade war between China and the United States also weighed on gold in the previous session.
Meanwhile, holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose 0.69 percent to 865.89 tons on Thursday.
Holdings rose to their highest since June 2017 and were up about 3.5 percent so far this year.
Silver rose 1.24 percent to $16.64 an ounce, up nearly 2 percent this week.
Platinum vacillated around $925. For the week, the metal was on course for a more than 1 percent gain, the biggest rise in about two months.
Palladium climbed 2.14 percent to $984.50 and was set for a more than 8 percent weekly gain, its biggest since January 2017.
The metal, more than 40 percent of which is produced in Russia, has bounced strongly this week as sanctions against Moscow fed into a technically driven rebound after the first quarter's 10 percent slide.
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c9d63e1ff9e67a9de4ef589fa234c468 | https://www.cnbc.com/2018/04/12/mccarthy-has-big-fundraising-edge-over-scalise-in-race-to-succeed-paul-ryan.html | Top contenders to succeed Paul Ryan as House GOP leader load up for campaign finance slugfest | Top contenders to succeed Paul Ryan as House GOP leader load up for campaign finance slugfest
House Speaker Paul Ryan (R-WI) speaks while flanked by House Majority Whip, Steve Scalise (R-LA) (C) and House Majority Leader Kevin McCarthy (R-CA), during a news conference on Capitol Hill December 5, 2017 in Washington, DC.Getty Images
The race to succeed Paul Ryan as the leader of the House Republican conference is on, and the two most likely candidates are already loading up their campaign finance arsenals for what could turn into a slugfest for the job.
A key to following Ryan is matching his fundraising prowess, and House Majority Leader Kevin McCarthy, R-Calif., has a hefty advantage over his potential rival, House Majority Whip Steve Scalise, R-La., after the first quarter of this year.
Scalise has repeatedly said he will not run against McCarthy for the job. Yet lawmakers tell CNBC on the condition of anonymity that Scalise's name continues to be floated as an underdog for the post, provided he shows that he can raise enough money – and not just for his own campaign but for the party as a whole.
McCarthy's campaign raised $8.75 million during the first three months of 2018, according to financial disclosure information a campaign aide provided to CNBC. He has also transferred $2.9 million to the National Republican Congressional Committee, which is dedicated to helping GOP candidates get elected to the House.
Scalise, on the other hand, announced a fundraising haul of $3 million during the quarter. His campaign transferred $1 million to the NRCC and donated $650,000 to other GOP candidates. Each candidate is running for re-election in their respective districts, and they have the backing of influential executives.
VIDEO0:5800:58House Speaker Paul Ryan will not run for re-electionNews Videos
McCarthy's joint fundraising committee, the McCarthy Victory Fund, has received the support of real estate firm Western National Group, with individuals employees of the company giving $538,000, according to the Center for Responsive Politics. Members of private equity firm the Carlyle Group have given $100,000 to the committee, as well.
Scalise's fundraising operation has been expanding, however. So far in 2018, employees of the pharmaceutical distributor Morris & Dickson have given $16,200 to the Scalise campaign, while the political action committee of medical insurance company Blue Cross/ Blue Shield has donated $11,000.
The lawmaker's joint committee, the Scalise Leadership Fund, has reeled in $244,000 from employees of Harvey Gulf International Marine, which provides marine transportation for deepwater operations in the Gulf of Mexico. Employees of Cajun Industries, a leading construction firm in Scalise's home state of Louisiana, gave $102,000 to the committee.
Ryan's sudden announcement Wednesday sent lawmakers scrambling to figure out who will take become the next Republican leader in the House, with Scalise and McCarthy emerging as the most likely ones to step up.
Ryan's successor as leader of the House GOP will have some big fundraising shoes to fill, as the Wisconsin Republican was known for going on the road to raise money for the party.
"Campaign fundraising and money will play a large role in the race for Ryan's job," political strategist Hank Sheinkopf told CNBC. "Can they inspire the mega-donors to give individual contributions? They need to be able to inspire people to support the party and lead it, all at the same time."
Team Ryan, the speaker's joint fundraising committee, raised a record $11 million in the first quarter of 2018 and transferred more than $40 million from its war chest to the NRCC.
Ryan is preparing for his eventual departure, but will continue to help raise funds for Republican House members while also working to bring in the cash to his political action committee, Prosperity Action, and the NRCC, according to campaign aides.
VIDEO2:3902:39House Speaker Paul Ryan announces retirementSquawk on the Street
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d93db166cf526650d7307ebca649163c | https://www.cnbc.com/2018/04/12/nfl-mlb-nba-nhl-players-unions-join-legal-sports-gambling.html | NFL, MLB, NBA and NHL players unions join legal sports gambling debate | NFL, MLB, NBA and NHL players unions join legal sports gambling debate
Some of the more than 400 proposition bets for Super Bowl LI between the Philadelphia Eagles and the New England Patriots are displayed at the Race & Sports SuperBook at the Westgate Las Vegas Resort & Casino on January 26, 2018 in Las Vegas, Nevada.Ethan Miller | Getty Images
With the legalization of sports betting across the U.S. looking more likely, players unions from major North American sports leagues want a seat at the table. The Players Associations for the MLB, NBA, NFL and NHL announced on Thursday they collectively plan to serve as a voice distinct from the interests of those working to legalize gambling on games but whose motivation is profit-based.
"Given the pending Supreme Court decision regarding the Professional and Amateur Sports Protection Act (PASPA) ... The time has come to address not just who profits from sports gambling, but also the costs. Our unions have been discussing the potential impact of legalized gambling on players' privacy and publicity rights, the integrity of our games and the volatility on our businesses," the Players Associations said in a joint statement.
"Betting on sports may become widely legal, but we cannot allow those who have lobbied the hardest for sports gambling to be the only ones controlling how it would be ushered into our businesses. The athletes must also have a seat at the table to ensure that players' rights and the integrity of our games are protected."
The Supreme Court decision, for which oral arguments were heard last December, is expected by late June.
VIDEO1:1101:11Fertitta on sports betting: We're giving away billions to offshore gambling companiesPower Lunch
Protecting the integrity of the game and the regulation surrounding it has been a topic of debate and the players wanting say in the matter should not come as a surprise. Part of the debate from the sports leagues' point of view has been focused on how they get paid.
The NBA and MLB, which have been the most vocal leagues from early on in the debate, have proposed a 1 percent integrity fee to be paid to leagues from the total pool of bets, to help cover the costs they will incur from compliance efforts to avoid betting scandals involving players. New York State's Senate recently introduced legislation that would provide leagues with a 0.25 percent fee. Some gambling experts argue that the size of any integrity fee could influence whether legalized sports gambling is successful as a business model — too high a fee could keep most of the action with illegal bookmakers.
Potential scenarios involving players and match-fixing is a real concern. Dr. Laila Mintas of Sportradar, a company that works with the officials and players of several leagues to deter scandals, including the those in the NBA and NHL, believes it makes sense to have all parties in on the conversations.
"All relevant stakeholders, including player unions, need to have a seat at the table as we approach this potential landmark change in the sports betting landscape in the United States. Maintaining the integrity of sport must be a key cornerstone of the discussions," Mintas said.
The NBA has previously emphasized the need to protect the integrity of the game and the organization is open to its players union being involved in the process, as NBA spokesman Mike Bass tells CNBC.
"We welcome the involvement of our players in this process and believe there is an alignment of interests of everyone involved in professional sports to protect the integrity of our competitions," Bass said.
The NFL declined to comment on NFLPA's stance, but did offer a statement on the upcoming U.S. Supreme Court decision that could allow states the ability to allow sports betting. "Regardless of the outcome, we will maintain our relentless focus on protecting the integrity of the game and ensure there are no improper influences affecting how the game is played on the field. If there are changes, we will work with regulators, operators, the clubs, players and others to ensure that our fans and the game and the people who play, coach, and officiate it are protected," an NFL spokesman told CNBC.
VIDEO0:0000:00Millions already betting on sports using offshore websites: American Gaming Association CEOPower Lunch
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5c7d92a4006f06aedf591200e38f9403 | https://www.cnbc.com/2018/04/13/comcast-to-include-netflix-in-cable-bundles.html | Comcast to include Netflix in cable bundles | Comcast to include Netflix in cable bundles
Gabby Jones | Bloomberg | Getty Images
Comcast will begin offering Netflix subscriptions within its cable bundles this month, the companies announced Friday.
This is the first time that Netflix has been included in a major U.S. television provider bundle. Comcast and other providers have long fought against the cord-cutting effect of Netflix and other streaming services.
Comcast said that it would offer multiple Xfinity packages with a Netflix subscription embedded. The company began offering Netflix on the company's X1 platform in 2016. X1 is an all-in-one platform for Comcast customers that combines live TV, streaming, on demand, DVR and online programming.
"Netflix offers one of the most popular on demand services and is an important supplement to the content offering and value proposition of the X1 platform," Sam Schwartz, chief business development officer at Comcast Cable, said in a statement.
The Netflix subscription will run through Comcast and will be included in the customers' monthly cable bill.
The new offerings come as Disney ramps up its streaming offerings with plans to launch an over-the-top streaming service in 2019. Earlier this week Disney launched ESPN+, a direct-to-consumer streaming service for sports.
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.
— Reuters contributed to this report.
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da9a5acfe5f8be03625b8114cb027e3a | https://www.cnbc.com/2018/04/13/defense-secretary-mattis-trump-ordered-strikes-to-destroy-syrian-chemical-weapons-infrastructure.html | Top US general on Syria assault: 'This wave of air strikes is over' | Top US general on Syria assault: 'This wave of air strikes is over'
U.S. Marine Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, answers questions during a press conference at the Pentagon.Department of Defense photo
The United States, Britain, and France pounded Syria in a coordinated air strike in response to a chemical weapons attack that killed approximately 60 people last week. The U.S.-led coalition is being dubbed the biggest intervention by Western powers in Syria's civil war.
Secretary of Defense James Mattis called the strikes a "one time shot" and said that they were aimed at Syrian government's chemical weapons infrastructure. "Right now we have no additional attacks planned," Mattis said Friday evening from the Pentagon.
Speaking alongside Mattis, Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford named three targets that were struck in the military operation which began at 9 p.m. EST time.
The first target was the Syrian Scientific Studies and Research Center, a government body responsible for research and development of advanced weapons systems.
"The second target was a chemical weapons storage facility west of Homs, we access that this was the primary location of Syrian sarin and precursor production equipment," Dunford said.
The last target was a chemical weapons storage facility as well as a military command post.
And while Dunford would not describe the military assets that were deployed, he added that, "this wave of air strikes is over."
"Clearly, the Assad regime did not get the message last year," Mattis said.
"Together we have sent a clear message to Assad and his murderous lieutenants that they should not perpetrate another chemical weapons attack for which they will be held accountable."
Defense Secretary Jim Mattis briefs members of the media on Syria at the Pentagon April 13, 2018 in Arlington, Virginia. President Donald Trump has ordered a joint force strike on Syria with Britain and France over the recent suspected chemical attack by Syrian President Bashar al-Assad.Getty Images
Nor Mattis or Dunford addressed possible Russian or Syrian retaliation to the U.S.-led strikes.
Meanwhile, the Russian Ambassador to the United States Anatoly Antonov issued a statement via Twitter.
"A pre-designed scenario is being implemented. Again, we are being threatened. We warned that such actions will not be left without consequences. All responsibility for them rests with Washington, London and Paris."
TWEET
The strikes came on the heels of an alleged chemical weapons attack believed to be carried out by forces aligned with the Assad regime in Douma, a town that was held by Syrian rebels.
The Assad regime has denied responsibility for the April 7 attack and has since repositioned a significant amount of air assets to Russian-controlled airfields in hopes that Washington would be reluctant to strike there.
"I am confident the Syrian regime conducted a chemical attack on innocent people in this last week," Mattis said noting that the U.S. government had enough intelligence to carry out the strike.
Last year, the Trump administration lobbed a total of 59 Tomahawk cruise missiles from the Navy destroyers USS Porter and USS Ross in the eastern Mediterranean.
The missiles hit aircraft hangars, ammunition bunkers, air defense systems and radar. Additionally, the Pentagon said Russian forces in Syria were formally notified before the strike, but Moscow was not involved in the military operation.
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952de27279f9ab6b182461989fd98d1d | https://www.cnbc.com/2018/04/13/gmail-confidential-mode-prevents-recipients-from-printing-emails.html | Gmail is getting a 'confidential mode' that prevents users from printing or forwarding your email | Gmail is getting a 'confidential mode' that prevents users from printing or forwarding your email
Sundar Pichai, CEO, GoogleDenis Balibouse | Reuters
Gmail is getting a new Confidential Mode that will add an extra layer of security to messages that you wish to remain private, according to The Verge.
Confidential Mode feature, which might be revealed as soon as May 8 during Google's annual developer conference, reportedly lets senders choose to block the recipient of the email from doing certain things with the message, like forwarding it, printing it or even copying the contents.
Users will also have the option to lock an email message with a password, The Verge said, or set a certain time for the message to expire and vanish.
The changes are particularly important as consumers begin to worry more about how their data is used and shared, and who has access to it. Using a confidential email might let you send a message to a friend or colleague without having to worry about the contents being forwarded to folks who you don't want to see it.
Read the full report on The Verge.
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6d057fa31c965ac379487ff6c07ddf6e | https://www.cnbc.com/2018/04/13/housing-affordability-weakening-at-fastest-pace-in-quarter-century.html | No relief in sight: Housing affordability is weakening at the fastest pace in a quarter century | No relief in sight: Housing affordability is weakening at the fastest pace in a quarter century
VIDEO1:2601:26Home affordability projected to weaken at the fastest pace in a quarter-centuryPower Lunch
It is the perfect storm: Rising home prices, rising mortgage rates and rising demand are colliding with a critical shortage of homes for sale.
And all of that is slamming housing affordability, which is causing more of today's buyers to overstretch their budgets. This year, affordability — a metric based solely on the amount of the monthly mortgage payment — will weaken at the fastest pace in a quarter century, according to researchers at Arch Mortgage Insurance.
The average mortgage payment, based on the median-priced home, increased by 5 percent in the first quarter of 2018 nationally and could go up another 10 to 15 percent by the end of the year, according to their report.
Researchers looked at the median-priced home, now $250,000, and estimated price gains this year of 5 percent in addition to mortgage rates going from 4 percent to 5 percent on the 30-year fixed. Other studies that factor in median income also show decreasing affordability because home prices are rising far faster than income growth.
Related: More tech workers can't afford to live where they work
That is a national picture – but all real estate is local, and some markets will see affordability weaken more dramatically. The average monthly payment in Tacoma, Washington, is estimated to increase 25 percent this year, given sharply rising prices. In Baltimore and Boston, it could rise 21 percent in each. Philadelphia, Detroit and Las Vegas could all see 20 percent increases in the average monthly payment.
"If mortgage rates and home prices continue to rise as expected, affordability will get hammered by year-end as demand continues to outstrip supply," said Ralph DeFranco, global chief economist-mortgage services at Arch Capital Services. "A strong U.S. economy combined with a housing shortage in many markets means that there is little hope of any price drop for buyers. Whether someone is looking to upgrade or purchase their first home, the window to buy before rates jump again is probably closing fast."
Barely a decade after home values crashed epically, they are now hovering near their historical peak, accounting for inflation. Prices are being driven by record low inventory of homes for sale. Homebuilders are still producing well below historical norms, and demand for housing is very hot. The economy is stronger, which is giving younger buyers the incentive and the means to buy homes.
Maryland real estate agent Theresa Taylor said the supply shortage is hitting buyers hard. She is seeing more clients stretch their budgets to win a deal amid multiple offers.
"People are having to escalate offers on top of rates going up. I'm seeing it in all price ranges," said Taylor, an agent at Keller Williams. "I am seeing it when I'm getting five offers, and people are trying to package up an offer where they're pushing their limits."
Buyers are taking on much higher debt levels today to be able to afford a home. In fact, the share of mortgage borrowers with more than 45 percent of their monthly gross income going to debt payments more than tripled in the second half of last year. Part of that was because Fannie Mae raised that debt-to-income threshold to 50 percent, but clearly there was demand waiting.
"Family income is rising more slowly than home prices and mortgage rates, meaning that the mortgage payment takes a bigger bite out of income for new homebuyers," said Frank Martell, president and CEO of CoreLogic. "CoreLogic's Market Conditions Indicator has identified nearly one-half of the 50 largest metropolitan areas as overvalued. Often buyers are lulled into thinking these high-priced markets will continue, but we find that overvalued markets will tend to have a slowdown in price growth."
CoreLogic considers a market overvalued when home prices are at least 10 percent higher than the long-term, sustainable level. High demand makes the likelihood of a national home price decline very slim, but certain markets could see prices cool if supply grows or if there is a hit to the local economy and local employment.
In any case, the more homebuyers stretch, the more house-poor they become, and the less money they have to spend in the rest of the economy.
With no relief in either inventory or home price appreciation in sight, the housing market is likely to become even more competitive this year.
At some point, however, there will come a breaking point when sales slow, which is already beginning to happen in some cities. Home prices usually lag sales, so if history holds true, price gains should start to ease next year.
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c994ec09912f8e191cfbc1a3e532df16 | https://www.cnbc.com/2018/04/13/mark-mobius-asia-nations-tough-talk-on-tpp-reentry-by-us-a-bluff.html | Mark Mobius: Asian nations' tough talk on TPP reentry by US is a bluff | Mark Mobius: Asian nations' tough talk on TPP reentry by US is a bluff
VIDEO0:2900:29Mark Mobius sees good growth potential in emerging marketsSquawk Box
President Donald Trump likes a good negotiation, and he's likely to get one if the United States is serious about reentering talks with trading partners on the Trans-Pacific Partnership. Reports out of Washington, D.C., this week were that Trump has signaled a surprise openness to the TPP, a deal that he bashed on the campaign trail and, once elected, signed an executive order to abandon.
In response, some of the TPP pact nations said they won't be rushing to appease Trump. General statements from TPP members "welcomed" the U.S. interest, but also stressed there won't be any renegotiation. Australia's trade minister told the New York Times on Friday, "We've got a deal. I can't see that all being thrown open to appease the United States."
Officials from Japan and New Zealand, also among the 11-member TPP block, were also cagey about the latest surprise from Trump.
But Mark Mobius, the dean of emerging markets investing, thinks the tough talk from TPP partners is just that — talk — and if Trump is serious about TPP reentry, the United States has a strong position to get back in on the trade deal.
Trump holds up an executive order withdrawing the U.S. from the Trans-Pacific Partnership after signing it in the Oval Office of the White House in Washington, DC, January 23, 2017.Saul Loeb | AFP | Getty Images
"Let's face it, the U.S. is the biggest trading partner and has the biggest influence," Mobius said on CNBC on Friday. "Without the U.S. the whole thing doesn't work; it doesn't make sense. It's a net positive if the U.S. enters negotiations. ... Always better than one-off statements that shut down any chance of compromise," Mobius said.
Among the reasons stated for Trump's renewed interest is placating voters in farm states that have been hit hard by the trade war with China. Some top Democrats slammed the news as a "ridiculous reversal."
Mobius also believes the United States has a strong position in that evolving trade scenario. "Just look at the trade balance. It's way off. The U.S. has lots of negotiating bullets," he said.
Mobius said trade rhetoric about the U.S. economy being software- or service-based and, therefore, not being represented well by trade balance analysis misses the larger point: Those industries need access to the Chinese market. "A stronger trade balance is good for everyone, China included."
He added, "Let's face it, at the end of the day, the U.S. is strong on software but doesn't have full access to the Chinese market, and that's one area where there has to be negotiations to strengthen the U.S. position. Mobius also noted that the United States is a commodity producer, and getting greater access to the Chinese market for commodities could provide trade options.
"The good news is the Chinese know how to negotiate. It's one voice in China. In America it's 200. ... The Chinese will give a lot — the renminbi is getting stronger, and there are lots of little buttons they can push."
The emerging markets investing guru, who recently formed his own asset-management company after decades with Franklin Templeton Investments, did not express concerns about the current trade friction slowing down global growth.
He said that although the situation varies from Russia, hard-hit by sanctions, to China and Brazil, still mired in a political corruption scandal reaching to the highest levels of power, there are at least "a few innings left" for the global growth boom.
"Growth is still holding up in emerging markets. China and India are growing at 6 percent to 7 percent, and Brazil has recovered, though it's still going through the scandal, but reforms are taking place," Mobius said.
Mobius, who just visited South America, said the economy in Chile "looks great" and Argentina also continues to be strong under its new president, Mauricio Macri.
He continues to be the most positive on China and India, citing cancer treatment research in China that is "way ahead" and India, which by 2050 will have more people than China. "It's a huge market, growing at a fast pace."
More from Global Investing Hot Spots:
Saudi prince woos US corporate giants to build tech hubChina's $1.2 trillion weapon in trade warEverything Elon Musk has ever said about selling cars in China
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e1c3c6d38a0c5480e36819a8af64742b | https://www.cnbc.com/2018/04/13/pakistan-disqualifies-former-prime-minister-nawaz-sharif-from-holding-office.html | Pakistan's Supreme Court disqualifies former PM Sharif from holding office for lifetime | Pakistan's Supreme Court disqualifies former PM Sharif from holding office for lifetime
Pakistan's Prime Minister Nawaz SharifChristopher Furlong | Getty Image
The Pakistan Supreme Court on Friday disqualified former Prime Minister Nawaz Sharif for lifetime from holding any public office, Xinhua news agency reported.
A five-member bench delivered the verdict on the question of the period of the disqualification of a member of the parliament.
The court had disqualified Sharif as prime minister over corruption charges last year but it had not mentioned the disqualification period in the verdict that was delivered on July 28, 2017.
The five judges in an unanimous ruling said those who are not "honest" and "truthful" under the country's constitution are "banned from parliament for life."
The ruling Pakistan Muslim League-Nawaz of Sharif rejected the verdict and said the former prime minister was "punished for eliminating terrorism and carrying out development projects."
"The verdict is a joke and such decisions have also been announced about 17 prime ministers," State Minister of Information and Broadcasting Maryam Aurangzeb said.
The minister told reporters in Islamabad that the verdict will not affect the PML-N's performance and the party will be victorious in the coming parliamentary elections, which are scheduled in July.
An influential opposition leader Jehangir Tarin, who belongs to Pakistan Tehrik-e-Insaf or Justice Movement, was also declared disqualified for life under the judgment.
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eb0a7cf5df3dc33058cd2894dc8e007e | https://www.cnbc.com/2018/04/13/post-office-rate-hike-could-cost-amazon-up-to-1-point-8-billion-more-per-year-credit-suisse.html | Post office rate hike could cost Amazon up to $1.8 billion more per year: Credit Suisse | Post office rate hike could cost Amazon up to $1.8 billion more per year: Credit Suisse
A letter carrier holds Amazon.com packages while preparing a vehicle for deliveries at a United States Postal Service processing and distribution center in Washington, D.C.Andrew Harrer | Bloomberg | Getty Images
President Donald Trump's recent focus on what the post office charges Amazon for delivery may cost the e-commerce retailer a significant amount of money, according to one Wall Street firm.
Credit Suisse ran the numbers on how much more it will cost Amazon if the United States Postal Service raised its rates by 15 to 20 percent. In recent weeks Trump repeatedly blasted Amazon on Twitter, sparking a decline in the company's share price. The president criticized the e-commerce retailer over taxes and claimed it has not paid the post office adequately for its delivery services.
Trump also issued an executive order on Thursday to set up a task force to study the post office's financial position and recommend reforms. Amazon was not directly referenced in the order.
"Instead of spending time debating whether changes to the USPS shipping rates have any merit, we would rather think through relative scenarios and impact to Amazon's shipping costs," analyst Stephen Ju wrote in a note to clients Friday. The firm's "sensitivity table suggests incremental shipping expenses for 2018 in the range of ~$1b to $1.8b based on the aforementioned range of price hike possibilities under the assumption of the USPS accounting for 40-50% of costs."
The analyst downplayed the long-term impact from any post office pricing changes, as Amazon can shift shipping volume to its own delivery services.
"And as it continues to do with the ongoing rollout of Prime Now and its Flex Driver program, Amazon continues to decrease its dependency on the USPS – we hence believe that while the potential exists for near-term profits to be negatively impacted, the long-term thesis remains unchanged," he wrote.
As a result, Ju reiterated his outperform rating for Amazon shares and his $1,750 price target, representing 21 percent upside to Thursday's close.
Amazon did not immediately respond to a request for comment.
Disclaimer
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9384827d8501f6e85cf98ec7a6f4622a | https://www.cnbc.com/2018/04/13/yahoo-japan-to-buy-minority-stake-in-cryptocurrency-exchange.html | Yahoo Japan to buy minority stake in cryptocurrency exchange | Yahoo Japan to buy minority stake in cryptocurrency exchange
Getty Images
Yahoo Japan Corp said on Friday it would buy a minority stake in a Tokyo-based cryptocurrency exchange, becoming the latest major Japanese financial services provider to shrug off security concerns and join the digital money industry.
Yahoo Japan, which is also the country's biggest online auction site, said in a statement it would buy through a subsidiary a 40 percent stake in BitARG Exchange Tokyo, with services planned for launch in the autumn.
Yahoo Japan did not give details of the value of the investment. But a person familiar with the matter said it would likely total 2 billion to 3 billion yen ($18.6 million to $27.9 million).
Shares in Yahoo Japan closed down 0.2 percent, against a 0.6 gain for the benchmark Nikkei average.
The deal comes after Japanese online brokerage firm Monex Group Inc (8698.T) said last week it would buy hacked cryptocurrency exchange Coincheck Inc for $34 million.
That saw Monex join other mainstream financial services providers such as larger peer SBI Holdings Inc and messaging app operator Line Corp in looking to enter the cryptocurrency industry.
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994edb26a3c566dd448a93503a4261a9 | https://www.cnbc.com/2018/04/13/zillow-shares-plunge-on-plan-to-start-flipping-homes-rival-opendoor.html | Zillow shares plunge 9 percent on the company's plan to start flipping homes | Zillow shares plunge 9 percent on the company's plan to start flipping homes
VIDEO3:2003:20Zillow CEO on flipping: We're ready to be an investor in our own marketplaceSquawk Alley
Zillow shares plunged 9 percent on Friday after the online real estate database company announced it will begin buying and selling homes, a capital-intensive endeavor.
With Zillow's new program, announced on Thursday, home sellers in the test markets of Phoenix and Las Vegas will be able to use Zillow's platform to compare offers from potential buyers — and Zillow. When Zillow purchases a home, it will aim to quickly flip the home, making updates and repairs and listing it as soon as possible. An agent will represent Zillow in each transaction.
"We're entering that market and think we have huge advantages because we have access to the huge audience of sellers and buyers," Zillow CEO Spencer Rascoff said on CNBC's "Squawk Alley." "After testing for a year in a marketplace model, we're ready to be an investor in our own marketplace."
But investors are less enthusiastic. Flipping homes, a model that's being utilized by start-up Opendoor, is very different than operating an internet marketplace. It carries additional risk associated with buying and selling homes and requires a hefty investment in operations. And it also potentially puts Zillow in direct competition with the realtors on its platform.
Zillow sank $5, or 9.3 percent, to $48.77 as of mid-day on Friday, knocking more than $900 million off its stock market value.
"This is a business model that to date has been all advertising revenue driven, which is high gross margin," said Mark Mahaney, an analyst at RBC Capital Markets who has a "buy" rating on Zillow. "And now there's this pivot into this other category which has balance sheet risk and it has much lower margins and is in an uncertain housing environment," Mahaney said on CNBC's "Squawk on the Street."
VIDEO1:5701:57Zillow house flipping pivot makes a lot of sense, says analystSquawk on the Street
In May 2017, Zillow announced the launch of Instant Offers, which enables home sellers in the Las Vegas and Orlando test markets to get cash offers from potential investors on Zillow's platform. The company said homeowners prefer the process, and that most of them who requested an Instant Offer ended up selling their home with an agent.
"Home sellers welcome a hassle-free experience selling your home without decluttering your garage or taking the kids out of the house," Rascoff said.
Rascoff said the company will take on collateralized debt to purchase the homes, and hopes to have between 300 and 1,000 homes held for sale by year's end. He called the move "industry friendly," benefiting buyers, investors and agents. He also said it could help stimulate the real estate market and open up new inventory for prospective buyers.
"There are people that are basically stuck in their home that would love to go buy another home, but can't sell," Rascoff said. "This could provide the ability to unstick people from their homes."
Mahaney said that it will help Zillow test how much the real estate market is turning.
"This is an interesting experiment on the company's part," Mahaney said. "They've reached the point of scale with both real estate agents and with consumers. There are data points in the market that suggest this way of buying and selling homes is really starting to gain traction."
The program will start this year in Phoenix and Las Vegas. Zillow didn't say when it will expand into other markets.
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915e6aa16883b4f6f0a1363623a8bc18 | https://www.cnbc.com/2018/04/14/trump-wants-to-prove-his-point-about-amazon--so-hes-looking-into-the-post-offices-finances.html?__source=yahoo%7Cfinance%7Cheadline%7Cstory%7C&par=yahoo&yptr=yahoo | Trump wants to prove his point about Amazon – so he’s looking into the Post Office’s finances | Trump wants to prove his point about Amazon – so he’s looking into the Post Office’s finances
President Donald Trump is clearly not a fan of Amazon. He attacked the company via Twitter five times in one week.
Now, he's demanding an audit of the Postal Service's finances. Trump didn't say he's specifically looking into the Post Office's deal with Amazon, but it seems like he's trying to back up his claims.
One of his main contentions is that Amazon is ripping off the U.S. Postal Service, but it's not clear whether it is getting the short end of the stick from the Jeff Bezos-led retailing juggernaut.
In fact, Amazon may be saving the post office from financial ruin.
On April 3, Trump said, "the post office is losing billions of dollars," at U.S. taxpayers' expense.
It's true that the post office is losing money. It reported a $2.7 billion net loss in 2017.
But the post office is not funded by U.S. tax dollars.
And when you look at the revenue breakdown, you can see that shipping and packages is actually one of the few categories that brought in more money than the previous year. While overall revenue fell $1.8 billion, shipping and packages saw a $2.1 billion increase in revenue. Meanwhile, first-class mail revenue was down around $1.8 billion.
USPS 2017 Fiscal ReportCNBC | Kyle Walsh
And the post office was in the red long before Amazon became such an online giant. The USPS began to lose money in the early 2000s with the internet's rise. But one of the post office's biggest revenue drainers has nothing to do with shipments, or the Internet.
It's all about employee benefits.
Back in 2006, Congress enacted a law that required the USPS to pre-fund its employee health benefits for the next 75 years. That move has cost the post office billions.
In a note to clients, Baird Equity Research said that any large customer, including Amazon, would actually help the post office subsidize its pension costs.
A United States Postal Service (USPS) letter carrier delivers mail in Shelbyville, Kentucky.Luke Sharrett | Bloomberg | Getty Images
In October 2013, Amazon struck a five-year deal with the Post Office. The specific terms of the contract aren't available to the public, because the postal service's deals with private shippers are considered proprietary. That means there's a decent amount of information we don't know.
However, one thing we do know is that the post office is making a profit.
In 2006, Congress ruled that the USPS couldn't set its prices lower than its costs, otherwise it would be able to unfairly charge less than its competitors like UPS and FedEx.
Every year, an independent agency called the Postal Regulatory Commission makes sure the USPS' deals make economic sense. And year after year, the commission has approved the deal with Amazon. In its 2017 annual report, the USPS even said its shipping and packages business helped the "financial picture of the Postal Service."
Trump is right that Amazon does technically receive a discount. Amazon ships a lot of packages, so chances are it's utilizing a bulk discount. But that's not specific to Amazon; it's available to other businesses, too.
Inventory at a warehouseGetty Images
That idea that the post office is losing big likely stems from a Citigroup report. The report alleges the USPS' pricing model is unsustainable, and that parcel rates would need to rise significantly for the agency to break even.
The report was mentioned in a widely circulated Wall Street Journal commentary by shipping analyst Josh Sandbulte. The analyst argues that the post office is essentially giving Amazon a $1.46 subsidy for every box it ships.
But if true, that figure would hold for all companies across the board, not just Amazon. Which is probably where Trump is coming up with the claim that the post office "will lose $1.50 on average for each package it delivers for Amazon."
TWEET
However, the $1.46 figure has been debated. Just after Trump's latest tweet-storm about Amazon, the Citigroup analyst who wrote the original report clarified that Amazon's business could be profitable for the USPS.
The Postal Service does receive reimbursements for some things mandated by Congress, like free mail for the blind and overseas voting. And it borrows money from the government to pay for its employee health benefits. But most analysts seem to agree that the post office isn't losing a fortune to Amazon.
The USPS declined to comment on this story. The commission did not return CNBC's request for comment.
Jeff BezosDavid Ryder | Getty Images
So if Trump really wants to influence Amazon's relationship with the post office, he might be able to demand a rate reset. But according to some analysts, that could actually end up hurting the post office more than helping it.
In a note to clients, Baird Equity Research said any rate negotiations would likely put "added financial stress on USPS."
But the post office may not be as essential to Amazon. The Postal Service does deliver a good chunk of Amazon's packages. But the retailer also uses UPS, FedEx, DHL Express, a number of regional and specialty retailers, along with its own delivery service called Amazon Logistics. And it's reportedly developing even more ways to break into the delivery business.
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f5ff997a82e58bcf864c543a7aba79dc | https://www.cnbc.com/2018/04/14/western-missile-attack-on-syria-was-right-and-legal-british-pm-may-says.html | Western missile attack on Syria was 'right and legal,' British PM May says | Western missile attack on Syria was 'right and legal,' British PM May says
Britain's Prime Minister Theresa May attends a press conference in 10 Downing Street, London, April 14, 2018.Simon Dawson | WPA Pool | Getty Images
British Prime Minister Theresa May said on Saturday that it was right and legal to order cruise missile strikes against Syria after a chemical attack on civilians in the town of Douma.
May said the aim was to deter the Syrian authorities from further use of chemical weapons and to send a message to the wider world that it was unacceptable to use such weapons.
"It was both right and legal to take military action together with our closest allies to alleviate further humanitarian suffering by degrading the Syrian regime's chemical weapons capability," May said.
She added that she would address parliament on Monday.
May said intelligence and open source accounts indicated that the Syrian government was behind the attack in Douma last Saturday.
"Reliable intelligence indicates that Syrian military officials coordinated what appears to be the use of chlorine in Douma on the 7th April. No other group could have carried this attack," May said. "The [Syrian] opposition does not operate helicopters or use barrel bombs."
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9903e06cdea526b4607bd82461fbd009 | https://www.cnbc.com/2018/04/14/winnie-south-africa-bids-farewell-to-madikizela-mandela.html | ‘Winnie!’ South Africa bids farewell to Madikizela-Mandela | ‘Winnie!’ South Africa bids farewell to Madikizela-Mandela
South African military personnel bring in the coffin of Winnie Madikizela-Mandela at Orlando Stadium for the funeral ceremony in Soweto, South Africa, April 14, 2018.Gianluigi Guercia | AFP | Getty Images
Millions of South Africans said an emotional goodbye to anti-apartheid icon Winnie Madikizela-Mandela on Saturday during her official funeral, with supporters fiercely defending her complex legacy.
Thousands of mourners packed a 40,000-seat stadium to celebrate the powerful figure who will be buried as a national hero, after lively debate over how she should be remembered after her death on April 2 at age 81.
Often called the "Mother of the Nation" and "Mama Winnie," Madikizela-Mandela fought to keep South Africa's anti-apartheid struggle in the international spotlight while her husband, Nelson Mandela, was imprisoned.
"Long before it was fashionable to call for Nelson Mandela's release from Robben Island, it was my mother who kept his memory alive," elder daughter Zenani Mandela-Dlamini said, as the audience erupted in cheers.
Many South Africans have stood up for Madikizela-Mandela's memory against critics who have characterized her as a problematic figure who was implicated in political violence after she returned from years of banishment in a rural town.
Condolences have poured in from around the world in remembrance of one of the 20th century's most prominent political activists.
Civil rights leader Jesse Jackson, who attended the funeral, said Friday that Madikizela-Mandela was responsible for making the anti-apartheid movement "a global struggle."
"She never stopped fighting. She never stopped serving," he told reporters. "She never left the belly of the beast."
Many memorializing Madikizela-Mandela have recognized her as a political force in her own right.
U.N. Secretary-General Antonio Guterres called her an "international symbol of resistance" whose extraordinary life had an impact on millions of people around the world.
"In apartheid South Africa, the combination of patriarchy and racism together meant that black women confronted enormous obstacles from the cradle to the grave - making her own achievements all the more exceptional," he said Friday at a memorial in New York, not mentioning Nelson Mandela at all.
The young Madikizela-Mandela grew up in what is now Eastern Cape province and came to Johannesburg as the city's first black female social worker. Not long after, she met African National Congress activist Mandela and the couple married in 1958, forming one of the most storied unions of the century.
After Mandela was imprisoned, Madikizela-Mandela embraced her own leadership in the freedom struggle with steely determination and at great personal sacrifice.
For years, she was routinely harassed by apartheid-state security forces, imprisoned and tortured. In 1977, she was banished to a remote town.
It took a toll. When Madikizela-Mandela returned from exile she became involved with a group of young men known as the Mandela United Football Club, who were widely blamed for violence in Soweto.
They were accused of the disappearances and killings of at least 18 boys and young men and the group's leader was convicted of killing a 14-year-old boy, nicknamed "Stompie," who was accused of being a police informer.
In 1991, a court found Madikizela-Mandela guilty of the boy's kidnapping and assault and sentenced her to six years in jail. She appealed and was found guilty of being an accessory, and the sentence was reduced to a fine and a suspended prison term. Madikizela-Mandela denied any knowledge of any killings.
Mandela divorced her in 1996, claiming infidelity and saying that after his release from prison, his wife made him "the loneliest man."
Though she fought fiercely for democracy, Madikizela-Mandela floundered in a political career after the first free elections in 1994. Mandela fired her as one of his deputy ministers and her stints as a lawmaker, a post she held until her death, were lackluster.
Supporters in the ANC have loudly defended her.
"She gave everything she had," the party's deputy secretary general Jessie Duarte has said. "For those of you whose hearts are unforgiving, sit down and shut up. This is our hero. This is our heroine."
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8aa471ce6cc9a36b2657b95266c85cd7 | https://www.cnbc.com/2018/04/15/forme-fbi-director-james-comey-talks-about-donald-trump-with-abc-.html | Former FBI Director James Comey calls President Donald Trump 'morally unfit to be president,' says it is 'possible' Russia has blackmail material | Former FBI Director James Comey calls President Donald Trump 'morally unfit to be president,' says it is 'possible' Russia has blackmail material
VIDEO2:0402:04Comey: Trump morally unfit to be presidentSquawk Box
Former FBI Director called President "morally unfit to be president" in a new interview with ABC News' "20/20" Sunday night and said it is "possible" that Russia has something it can blackmail Trump with.
In an exclusive interview with ABC News Chief Anchor George Stephanopoulos, Comey said, "Our president must embody respect and adhere to the values that are at the core of this country."
"The most important being truth. This president is not able to do that. He is morally unfit to be president," Comey said, noting that Trump talks about women "like pieces of meat."
President Donald Trump, shakes hands with James Comey, then-director of the Federal Bureau of Investigation, during an Inaugural Law Enforcement Officers and First Responders Reception in the Blue Room of the White House in Washington, D.C., Jan. 22, 2017.Andrew Harrer | Bloomberg | Getty Images
Asked if he thinks Russians "have something on Donald Trump," Comey said, "I think it's possible."
"It is stunning and I wish I wasn't saying it, but it's just ... it's the truth. I cannot say that [Trump is not subject to Russian blackmail]. It always struck me and still strikes me as unlikely, and I woulda been able to say with high confidence about any other president I dealt with, but I can't. It's possible."
The White House did not immediately respond to CNBC's request for comment about the Comey interview.
Comey also told ABC there is "certainly some evidence of obstruction of justice" when Trump asked him last year at the White House to if he could see his way to "letting Flynn go," referring to a criminal probe of fired National Security Advisor Michael Flynn.
"If he didn't know he was doing something improper, why did he kick out the attorney general and the vice president of the United States and the leaders of the intelligence community?" Comey asked, referring to Trump's actions before he asked about Flynn's case.
"I mean, why am I alone if he's — doesn't know the nature of the request?"
Comey's interview comes in advance of publication of his new book, "A Higher Loyalty: Truth, Lies, and Leadership" on Tuesday.
Comey's own firing last May by Trump set in motion the appointment of special counsel Robert Mueller by the Justice Department.
Mueller is investigating Russian interference in the 2016 presidential election, and possible collusion by Trump campaign officials in that meddling. Earlier this year, Mueller secured a guilty plea from Flynn for lying to the FBI, and got Flynn to cooperate with his ongoing probe of collusion and other matters.
Trump has repeatedly and angrily denied any such collusion. He also fumed about Mueller, and considered firing the special counsel, along with Attorney General Jeff Sessions, whose recusal from the Russia investigation let to Mueller's appointment by Deputy AG Rod Rosenstein.
Comey said he does not know "what's behind" Trump's reluctance to criticize Russian President Vladimir Putin in public.
"That mystified me even after President Trump became president, 'cause I discovered that he wouldn't criticize him even in private," Comey said.
"I can understand a president making a geopolitical decision that, 'I ought not to criticize an adversary country's leader for some reason publicly,' Comey said. "But I discovered President Trump wouldn't even do it privately, and I don't know why that is.'
After Comey said Trump was unfit to be president, he was asked if Trump should be impeached.
"I'll give you a strange answer," Comey said.
"I hope not because I think impeaching and removing Donald Trump from office would let the American people off the hook and have something happen indirectly that I believe they're duty bound to do directly. People in this country need to stand up and go to the voting booth and vote their values," Comey said.
"We'll fight about guns. We'll fight about taxes. We'll fight about all those other things down the road. But you cannot have, as president of the United States, someone who does not reflect the values that I believe Republicans treasure and Democrats treasure and Independents treasure," he said. "That is the core of this country. That's our foundation. And so impeachment, in a way, would short-circuit that."
Comey's interview with ABC News and his new book have enraged Trump in recent days.
On Sunday morning, the president unloaded a series of nasty tweets about Comey.
In those tweets, Trump called Comey "slippery," a "slime ball" and predicted that he would be remembered "as the WORST FBI Director in history, by far!"
Tweet
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6b3c3c039bee4400b4eb63435402681a | https://www.cnbc.com/2018/04/16/cramer-political-problems-threatening-the-markets-bull-case.html | VIDEO1:0601:063 political problems threatening the marketMad Money with Jim Cramer
After making it through the weekend's political woes — from Trump's retaliation on Syria to former FBI Director James Comey's ABC interview to the turmoil brewing around Trump lawyer Michael Cohen — CNBC's Jim Cramer still harbored some concerns.
"The market breathes a sigh of relief and rallies today," the "Mad Money" host said on Monday. "But here's the problem: none of these issues is actually resolved."
First, not long after President Trump set off a missile strike on three Syrian chemical weapon facilities, Syrian President Bashar Assad was seen laughing with Russian advisors about Trump's limited response.
"The Syrian civil war went right back to business as usual the next day," Cramer said.
Second, the "Mad Money" host figured Comey's upcoming book tour would provide more salacious details and revelations over time to garner publicity.
Third, the Cohen story seems to be developing as more of a "slow burn" than a one-off headline, creating a destabilizing undercurrent for the Trump administration, Cramer said.
So, what does that mean for investors?
"I'll tell you: it means we're going to have to deal with this backdrop against earnings every day, and twice on Saturdays and Sundays," Cramer said. "Yep, I think it could be an overhang because the stock market hates chaos, and given the nature of these challenges to President Trump, you have to worry that chaos is what we're going to get."
And while Cramer hoped that Friday's earnings windfall from Honeywell, General Electric, Procter & Gamble and Schlumberger would offset the weekend jitters that threaten the market layout, he admitted that hope was no investing strategy.
"Until these issues get cleared up somehow, if they even can be cleared up, the worries will linger," he said. "I'd love to be proven wrong here, but for the moment, let's assume ... every Friday is a tale of woe and every Monday rolls back some of those losses as the market breathes a sigh of relief if nothing catastrophic occurs."
VIDEO4:0604:06Cramer points to 3 political problems threatening the stock market's bull caseMad Money with Jim Cramer
Disclosure: Cramer's charitable trust owns shares of Honeywell and Schlumberger.
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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293c21e94a791652a65f5c9fc35581da | https://www.cnbc.com/2018/04/16/full-metal-jacket-actor-r-lee-ermey-dies-at-74.html | 'Full Metal Jacket' actor R. Lee Ermey dies at 74 | 'Full Metal Jacket' actor R. Lee Ermey dies at 74
Actor and retired Marine, R. Lee Ermey.Tom Williams | Roll Call | Getty Images
R. Lee Ermey, a former Marine who made a career in Hollywood playing hard-nosed military men like Gunnery Sgt. Hartman in Stanley Kubrick's "Full Metal Jacket," has died.
Ermey's longtime manager Bill Rogin says he died Sunday morning from pneumonia-related complications. He was 74.
The Kanas native was nominated for a Golden Globe Award for his memorable performance in "Full Metal Jacket," in which he immortalized lines such as: "What is your major malfunction?"
His co-stars Matthew Modine and Vincent D'Onofrio tweeted their condolences Sunday evening.
"#SemperFidelis Always faithful. Always loyal. Do not go gentle into that good night. Rage, rage against the dying of the light," Modine wrote, quoting the Dylan Thomas poem. "RIP amigo. PVT. Joker."
Vincent D'Onofrio added: "Ermey was the real deal. The knowledge of him passing brings back wonderful memories of our time together."
Born Ronald Lee Ermey in 1944, Ermey served 11 years in the Marine Corps and spent 14 months in Vietnam and then in Okinawa, Japan, where he became staff sergeant. His first film credit was as a helicopter pilot in Francis Ford Coppola's "Apocalypse Now," which was quickly followed by a part in "The Boys in Company C" as a drill instructor.
He raked in more than 60 credits in film and television across his long career in the industry, often playing authority figures in everything from "Se7en" to "The Texas Chainsaw Massacre" remake.
The part he would become most well-known for, in "Full Metal Jacket," wasn't even originally his. Ermey had been brought on as a technical consultant for the 1987 film, but he had his eyes on the role of the brutal gunnery sergeant and filmed his own audition tape of him yelling out insults while tennis balls flew at him. An impressed Kubrick gave him the role.
Kubrick told Rolling Stone that 50 percent of Ermey's dialogue in the film was his own.
"In the course of hiring the marine recruits, we interviewed hundreds of guys. We lined them all up and did an improvisation of the first meeting with the drill instructor. They didn't know what he was going to say, and we could see how they reacted. Lee came up with, I don't know, 150 pages of insults," Kubrick said.
According to Kubrick, Ermey also had a terrible car accident one night in the middle of production and was out for four and half months with broken ribs.
Ermey would also go on to voice the little green army man Sarge in the "Toy Story" films. He also played track and field coach and Nike co-founder Bill Bowerman in "Prefontaine," General Kramer in "Toy Soldiers" and Mayor Tilman in "Mississippi Burning."
Ermey also hosted the History Channel series "Mail Call" and "Lock N' Load with R. Lee Ermey" and was a board member for the National Rifle Association, as well as a spokesman for Glock.
"He will be greatly missed by all of us," Rogin said. "It is a terrible loss that nobody was prepared for."
Rogin says that while his characters were often hard and principled, the real Ermey was a family man and a kind and gentle soul who supported the men and women who serve.
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f4a3bad303449942566f39572f543033 | https://www.cnbc.com/2018/04/16/gop-tax-cuts-have-gotten-less-popular-with-voters-nbc-wsj-poll.html | GOP tax cuts have gotten less popular with voters, new NBC/WSJ poll says | GOP tax cuts have gotten less popular with voters, new NBC/WSJ poll says
VIDEO2:2202:22NBC/WSJ releases latest poll data on tech, tax law impactFast Money
As congressional Republicans fight to preserve their majorities, they may need to find a weapon more powerful than the big December tax cuts.
The new NBC News/Wall Street Journal poll shows that the tax-cut law, never broadly popular, has sagged in public esteem lately. Just 27 percent of Americans call it a good idea, down from 30 percent in January. A 36 percent plurality call it a bad idea, while the rest have no opinion.
Moreover, a majority gives thumbs-down on the plan when asked to consider its potential effects. Just 39 percent foresee a positive impact from a stronger economy, more jobs and more money in their pockets; 53 percent foresee a negative impact from higher deficits and disproportionate benefits for the wealthy and big corporations.
"Not a great starting point" for the fall campaign, said Fred Yang, a Democratic pollster who conducted the survey with Republican counterpart Bill McInturff. The telephone poll of 900 adults, conducted April 8-11, carries a margin of error of 3.27 percentage points.
Republicans began learning that lesson last month during a special House election in Pennsylvania. GOP strategists found the tax cuts an ineffective message against the Democratic candidates and dropped the issue as Election Day approached.
The Democratic victory in a district President Donald Trump had won by 20 percentage points in 2016 showed that tax cuts are "a political loser," says David Wasserman, a House analyst at the Cook Political Report.
The question now is how much effort GOP candidates sink into improving their stance on the tax-cut issue. They retain some advantages: Men still favor the tax cuts, although less strongly than women oppose it; so do rural residents, older men, and men without college degrees.
Yet working-class, middle-class and upper-class Americans all hold negative views of the tax-cut law. Women who have graduated from college call the tax cuts a bad idea by nearly a 3-to-1 margin.
Overall, the NBC/WSJ Poll shows Democrats with a seven-point edge over Republicans, 47 percent to 40 percent, on which party Americans want to win control of Congress this fall. Just 39 percent of Americans approve of Trump's job performance, while 57 percent disapprove.
VIDEO4:5104:51Consumer tax cuts impacting economic growth will bode well for earnings, says strategistPower Lunch
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9cdb5faa4db19d88aefd2d926b8cb028 | https://www.cnbc.com/2018/04/16/heres-how-youre-losing-out-on-credit-card-rewards.html?__source=sharebar%7Ctwitter&par=sharebar | Here's how you're losing out on credit card rewards | Here's how you're losing out on credit card rewards
Damon Moss | Getty Images
Chances are, you are confused about your credit card rewards, frequent flyer programs and hotel loyalty programs.
And that means you're probably leaving real money on the table.
Many Americans don't understand these programs, according to a new survey from NextAdvisor, which reviews online services.
More than half of those surveyed said they are befuddled by frequent flyer programs, followed by hotel loyalty programs and credit card rewards.
About 47 percent of survey respondents said they did not know how many hotel loyalty points they have. Meanwhile, 35 percent don't know their tally of frequent flyer miles, and 35 percent don't understand their credit card rewards.
Some consumers are not taking the time to sort through those rewards. That goes for 36 percent who are in frequent flyer programs; 33 percent in hotel loyalty programs and 24 percent with credit card rewards.
The problem comes from two sources, according to Julie Myhre-Nunes, an analyst at NextAdvisor: companies that do not make it clear how to redeem rewards and consumers who are quick to apply for cards that aren't necessarily the best fit for them.
Here are several steps you can take to avoid this confusion.
VIDEO1:0101:01You could be hurting your budget by using the wrong credit cardYour Money, Your Future
Make sure you understand exactly what rewards are being offered and how you would redeem them.
"Check out the terms and conditions to make sure everything in there is what you need," Myhre-Nunes said.
Don't sign on for a frequent flyer rewards program for an airline you never fly.
And if you only travel once a year or once every other year, you may not need those rewards. A better alternative: a cash-back rewards card, which lets you redeems those rewards for almost anything, Myhre-Nunes said.
If you have a rewards account now that you're not sure about, bone up on what's available to you by reading the fine print and/or calling customer service to find out.
Also be sure to revisit whether your accounts still match up with your needs at least every couple of years.
Three years ago, you may have been single and traveling frequently, for example, whereas now you're married and stay home more frequently.
"Especially around life changes, think about what your credit card is doing and if it's really the best fit for you," Myhre-Nunes said.
NextAdvisor's online survey was conducted in March and included 2,232 adults ages 18 and up.
More from Your Money Your Future: You're probably using the wrong credit card. Here's how to fix that This is how your friends and family members are ruining your credit Never, ever purchase these things on your credit card
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1b72e521c7cf067ffc38ce7df87a46d3 | https://www.cnbc.com/2018/04/16/if-oil-hits-80-theres-a-lot-more-at-play-than-airstrikes-in-syria.html | If oil hits $80, there's a lot more at play than airstrikes in Syria | If oil hits $80, there's a lot more at play than airstrikes in Syria
A methanol plant and oil wells on Kharg Island in the Persian Gulf, off the coast of IranKaveh Kazemi | Getty Images
Saturday's U.S.-led airstrikes on are likely to draw only a muted response in oil markets.
Instead, it will be how Syrian President Iranian and Russian allies react, and whether the White House pulls out of the Iran nuclear deal and re-imposes sanctions on the OPEC producer that will determine any move toward $80.
Syria produces only negligible volumes of oil, but benchmark oil prices rose to their highest since 2014 in the build-up to military action reflecting fears of broader regional instability. Though it's unclear if the strategic aim of the airstrikes — to degrade Syria's chemical weapons stockpiles — has been achieved, the action is perceived as a single strike and unlikely at this stage to provoke an outright confrontation between Assad allies and with the West in Syria.
"I think the market will be quite relaxed about the strikes, which were more limited than they might have been, and have found little response from the Assad regime or Russia," said Robin Mills, CEO of Qamar Energy, and a former Shell executive. "It's already been pretty clearly telegraphed that the U.S. will withdraw from the Iran deal, but the big question is what it then tries to do. I do think it's worth watching further sanctions on Russia. The tighter market now is certainly more vulnerable to geopolitical concerns or real disruptions."
VIDEO3:2103:21What’s next for oil?CNBC Explains
Energy strategists told CNBC over the weekend they expected oil to see little upside momentum from the strikes.
"I would not be surprised to see the oil price sliding given the fact that it has been priced in already," said Eugen Weinberg, head of commodity research at Commerzbank, told CNBC on Sunday.
As predicted, Brent crude and U.S. oil futures traded at $72.32 a barrel and $67.17 at around 7.50 a.m. Singapore time, down by 0.36 percent and 0.33 percent.
"Crude has outperformed most expectations for this time of year and may have rallied too far too fast ... there is no doubt that geopolitics has factored prominently in the rally of the last week," said Amrita Sen, chief oil analyst at Energy Aspects. "But we are likely to get a sell-off this week as the extent of the Syrian strikes have been muted and, in general, calmer nerves prevail in Washington."
That said, strategists didn't rule out a move toward $80 per barrel in the near term. U.S.-led airstrikes will likely worsen already tense relations between Washington and Tehran ahead of President May 12 deadline to renew or suspend sanctions waivers under the 2015 Iran nuclear deal.
The majority of the 10 strategists contacted by CNBC assigned a high-probability to Trump re-imposing sanctions on Iran.
The likelihood of the Trump administration withdrawing from the nuclear deal "is 90 percent," said Fereidun Fesharaki, chairman of energy consultancy Facts Global Energy and a former energy adviser to the prime minister of Iran in the 1970s. That in turn would risk "triggering sanctions within 180 days, but markets have not priced it in."
Even in the absence of such supply-related geopolitical tensions, "$80 oil is coming ... within the next couple of months," added Fesharaki. "Saudis are aiming for it. Iran and Venezuela sanctions add to the pressure. This may mean OPEC had to moderate the production cuts."
Commerzbank's Weinberg added: "I do expect the U.S. sanctions against Iran being re-established. It's widely expected but probably not to 100 percent. The reaction to such news would depend on the conditions and whether the other countries would join them (in sanctions) and the response of the OPEC. We may expect Saudi Arabia compensating for the eventual shortfalls."
The Syrian action "signals the arrival of the new hardliners in the Trump administration and their willingness to actively engage Russia, Iran and the Assad regime," said John Driscoll, director at JTD Energy Services. He said there's a "good chance we will breach $75 Brent shortly and hit new multi-year highs."
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0e7cee69c6c9591051e016d601593356 | https://www.cnbc.com/2018/04/16/syria-airstrikes-cost-to-us-taxpayers.html | US taxpayers paid millions of dollars for the airstrikes on Syria. Here's a breakdown of key costs | US taxpayers paid millions of dollars for the airstrikes on Syria. Here's a breakdown of key costs
VIDEO2:0602:06CNBC breaks down the missiles used in Syria StrikesSquawk Alley
The U.S. strike on Syrian chemical weapons facilities over the weekend cost taxpayers a lot of money, although the total bill isn't clear.
To start, U.S. forces fired 66 Tomahawk cruise missiles on three Syrian targets early morning local time, making for a price tag of $92.4 million for those missiles alone.
With an estimated cost of $1.4 million each, Raytheon's Tomahawk missile has an intermediate range of 800 to 1,553 miles and can be deployed from more than 140 U.S. Navy ships and submarines. What also makes the Tomahawk exceptionally lethal is its capability to carry a 1,000-pound conventional warhead which can be reprogrammed midflight.
Friday night Eastern time, President Donald Trump ordered the U.S. military to conduct missile strikes, along with French and U.K. forces, against the Syrian government. The use of Tomahawk missiles came as no surprise.
It's the weapon that "presidents reach for first in a crisis" according to missile defense expert Thomas Karako, director of the Missile Defense Project at the Center for Strategic and International Studies. Tomahawks have been deployed more than 2,300 times since joining the U.S. Navy's arsenal in the 1980s.
VIDEO5:0705:07Geopolitical tensions flare after Syria airstrikesSquawk Alley
The Tomahawk is half the length of a standard telephone pole, travels at the cruising speed of a commercial airliner, and can carry a 1,000-pound warhead the distance from New York City to Kansas City.
Lockheed Martin's Joint Air-to-Surface Standoff Missiles Extended Range, or JASSM-ER, a stealthy long-range air-to-ground missile, made its combat debut in the Syrian strikes.
The missile can strike more than 500 miles away and has an estimated cost of $1.4 million each, according to a GAO report. In which case, the price point for the 19 missiles the U.S. fired on Syria is $26.6 million.
In addition, the U.S. Air Force deployed a pair of B-1B Lancers, one of the world's most technologically advanced strategic bombers. The aircraft is believed to have an operating cost of approximately $95,000 per flight hour. It is unclear how long the Lancers flew and from where they were deployed.
The Pentagon and U.S. Air Force did not immediately respond to CNBC's request for clarity on the extent of the B-1B's role.
The Arleigh Burke-class guided missile destroyer USS Higgins steams through the Arabian Gulf during a maritime exercise.Department of Defense photo
The mission also involved aerial refueling tankers, surveillance aircraft and U.S. fighter jets that were tasked with escorting the bombers to their targets. And while the cost and types of the additional aircraft involved are unknown, the total number of Tomahawks and JASSM-ERs cost $119 million.
Compared with last year's strike, the hourlong bombing campaign on Friday was "double the size" with a total of 105 weapons sent upon Syrian chemical facilities at nearly the same time.
Last year, the Trump administration lobbed a total of 59 Tomahawk cruise missiles from the Navy destroyers USS Porter and USS Ross in the eastern Mediterranean.
Speaking to reporters at the Pentagon on Saturday, U.S. Marine Corps Lt. Gen. Kenneth McKenzie described the strikes on the three targets as "precise, overwhelming and effective."
"We are confident that all of our missiles reached their targets. At the end of the strike mission, all our aircraft safely returned to their bases," McKenzie said.
The latest strike — carried out in conjunction with French and British allies — dispatched a slew of air and naval military assets to the region.
Department of Defense photo
The coordinated efforts, which were spurred in response to a suspected chemical attack carried out by the Syrian regime, were launched from widely dispersed combat aircraft, submarines, and ships.
Here's a roundup of the U.S., British, and French combat assets deployed in the unnamed operation:
USS John Warner, a U.S. Virginia-class submarine, fired six Tomahawk cruise missiles from its position in the Mediterranean SeaUSS Monterey, a U.S. Ticonderoga-class guided-missile cruiser, fired 30 Tomahawk cruise missiles from its position in the Red SeaUSS Laboon, a U.S. Arleigh Burke-class destroyer, also launched another seven Tomahawks from its position in the Red SeaUSS Higgins, another Arleigh Burke destroyer, sent an additional 23 Tomahawks from the North Arabian GulfFrench frigate Languedoc launched three naval versions of a SCALP missile, a long-range deep strike weapon, from its position in the Eastern Mediterranean SeaTwo U.S. B-1B Lancer bombers escorted by U.S. fighter jets launched 19 Joint Air-to-Surface Standoff Missiles (JASSM)British Typhoon and Tornado aircraft launched 8 2,900 pound Storm Shadow cruise missiles, which have a range of more than 300 milesFrench Rafales and Mirages shot nine SCALP missiles
WATCH:
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9bf311575c1912bae562ac9732c8d1b0 | https://www.cnbc.com/2018/04/16/t-mobile-fined-40-million-over-failing-calls-and-false-ringtones-in-rural-areas.html | T-Mobile fined $40 million over failing calls and false ringtones in rural areas | T-Mobile fined $40 million over failing calls and false ringtones in rural areas
John Legere, president and CEO of T-Mobile.David A. Grogan | CNBC
T-Mobile will pay $40 million to the U.S. Treasury to settle accusations that it failed to improve call delivery for rural customers.
The Federal Communications Commission announced the fine on Monday, after an investigation showed a "practice of injecting false ring tones" into hundreds of millions of calls. The FCC opened the investigation after T-Mobile callers were unable to reach consumers served by three rural carriers in Wisconsin, even though T-Mobile said it had "resolved" the issue.
The FCC has been trying to improve rural connectivity for years, encouraging users to report periods of "dead air" after dialing, choppy or echoing voice quality, or hearing "10-20 rings even though you are reasonably sure someone should be there to answer."
In 2015, Verizon paid $5 million to address similar issues. The FCC said T-Mobile's latest fine is the sixth settlement related to rural connectivity.
"T-Mobile is committed to all of our customers across the country," the company told CNBC in a statement. "Our actions have always been focused on better serving our customers and the ringtone oversight, which was corrected in January 2017, was unintentional. We have settled this matter — and will continue to focus on our mission."
— CNBC's Todd Haselton contributed to this report.
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1d9422b87aba6f5b4b43f501df61511a | https://www.cnbc.com/2018/04/16/wall-street-attempts-to-avoid-first-back-to-back-losses-of-april-after-downturn.html | Wall Street attempts to avoid first back-to-back losses of April after downturn | Wall Street attempts to avoid first back-to-back losses of April after downturn
President Donald Trump tempered his preference for a more robust attack on Syria after caution from this Pentagon chief, The Wall Street Journal reported. Trump ordered targeted military action in the country late Friday, following an alleged chemical weapons attack.* Russia warns of 'consequences' for US-led strike on Syria (CNBC)* Mnuchin to announce details of new Russian sanctions (USA Today)
Former FBI Director James Comey called President Trump "morally unfit to be president" in a Sunday night interview with ABC News. Comey also said it is "possible" that Russia has something it can blackmail Trump with.* Trump calls Comey 'slippery' and 'WORST FBI Director in history' (CNBC)* Here are the most revealing things Comey said in first interview since Trump fired him (CNBC)
Trump's approval rating declined to 39 percent, down four points from last month, in the latest NBC/Wall Street Journal poll. The poll also found that Democrats are showing more enthusiasm for voting this fall than Republicans.
Some Republicans reportedly see the race for the next House speaker as wide open and will be so as long as Paul Ryan maintains his plans to stay through the end of the year. Majority Leader Kevin McCarthy and Majority Whip Steve Scalise are considered frontrunners. (WSJ)
Former first lady Barbara Bush, following a recent series of hospitalizations, is in "failing health" and won't seek additional medical treatment, according to a Bush family spokesperson. The person didn't elaborate as to the nature of Bush's health problems. (AP)
Apple (AAPL) apparently designed a gold-colored version of the iPhone X but hasn't released it yet, according to regulatory filings. Apple only released silver and space grey versions when the $999 device hit the market at the end of last year. (CNBC)
To make it easier to get rid of leftover prescription drugs, CVS Health (CVS) and Walgreens (WBA) are installing machines for disposal in their drugstores. Drug disposal programs are seen as one way to help stem the growing opioid crisis. (CNBC)
Starbucks (SBUX) continued to come under harsh criticism today after two black men were arrested as they sat in a coffee shop in Philadelphia. Later, CEO Kevin Johnson released an apology to the two men and said the company has begun an investigation. (Reuters)
Airline travelers were stranded and thousands were without power after slow-moving storms over the weekend generated record or near-record snowfall and low temperatures in the Midwest. (Reuters) High winds and heavy rain hit the Northeast, making for tough conditions for the 122nd running of the Boston Marathon today, five years after a deadly bombing killed three spectators and maimed more than 260 others during the iconic race. (USA Today)
General Electric (GE) will take a $4.2 billion first quarter charge, following an earnings restatement that cuts 2016 and 2017 profit by a total of 30 cents per share. The restatement is in line with prior guidance, and is related to updated accounting standards.
The low-cost carrier Allegiant Air is under pressure following a "60 Minutes" investigation that's raising safety concerns. Shares of parent company Allegiant Travel (ALGT) were losing about 6 percent in premarket trading.
Icahn Enterprises (IEP) is selling majority-owned unit Tropicana Entertainment for $1.85 billion. Tropicana's real estate operations are going to Gaming and Leisure Properties (GLPI). Tropicana's gaming and hotel operations are merging with Eldorado Resorts (ERI).
Shire (SHPG) struck a deal to sell its cancer drug business to French drug maker Servier for $2.4 billion. The deal comes amid takeover interest surrounding the British drug company from Japan's Takeda Pharmaceutical.
Qualcomm (QCOM) will refile its antitrust application in China for approval of its planned deal to buy NXP Semiconductors (NXPI), according to Reuters. The move is aimed at pushing back a prior April 17 deadline and giving regulators more time to consider the deal.
Xerox's (XRX) largest shareholder, billionaire Darwin Deason, filed a lawsuit alleging that CEO Jeff Jacobson was told by the board to stop talks with Japan's Fujifilm but instead raced to strike a deal.
Volkswagen's commercial-vehicles unit said it's considering a full takeover of Navistar International (NAV), an Illinois-based truck maker valued at about $3.66 billion, an ambitious move for the German automaker just days after naming a new CEO.
Dwayne Johnson proved his movie star might after his film "Rampage" $34.5 million in ticket sales in its North American debut. The film, which received weak reviews, involves mutant animals and was marketed squarely around Johnson's presence. (NY Times)
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4147c2148fb2fb98df76604f1166d524 | https://www.cnbc.com/2018/04/16/weibo-reverses-ban-on-gay-content-after-backlash-from-users.html | China's version of Twitter reverses ban on gay content after a backlash from users | China's version of Twitter reverses ban on gay content after a backlash from users
Brent Lewin | Bloomberg | Getty Images
Weibo, which is seen as China's equivalent of Twitter, reversed a ban on gay content Monday.
On Friday, the social media service which has 172 million daily active users, announced plans to remove posts containing pornographic cartoons, videos that promote violence, homosexual content, and violent video games. Weibo said that it would do this to comply with Chinese laws.
But after backlash from Weibo users, the company backtracked. In a post Monday, it said that it would no longer target "homosexual content" but would still clean up pornographic and violent posts.
Weibo users posted images with their partners and comments protesting the ban with the hashtag #iamgay.
One popular post was from a mother who said her son was gay. She mentioned the fact that homosexuality was decriminalized in China in 1997 and later removed from an official list of mental illnesses.
State-run newspaper People's Daily published an article over the weekend in which it said that being gay or bisexual was "not a disease," in what was a swipe at the Weibo announcement.
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03333e819e1bb5aeef0bf607c15e898d | https://www.cnbc.com/2018/04/17/budget-director-mick-mulvaney-economy-is-doing-better-than-we-expected.html | White House budget director Mick Mulvaney: Economy is doing better than we expected | White House budget director Mick Mulvaney: Economy is doing better than we expected
Office of Management and Budget (OMB) Director Mick Mulvaney speaks to the media at the U.S. Consumer Financial Protection Bureau (CFPB), where he began work earlier in the day after being named acting director by U.S. President Donald Trump in Washington November 27, 2017.Joshua Roberts | Reuters
White House budget director Mick Mulvaney told CNBC on Tuesday that economic growth is higher than what the Trump administration expected.
Mulvaney was asked about the 2.9 percent GDP growth in the economy during the fourth-quarter.
"We didn't even think we can do it till 2020 [3 percent growth] ... And we're there actually ahead of schedule," he said on "Squawk Box." "Not only was it not crazy, we actually underestimated the potential of the American economy."
The budget director said the surprising growth was due to anticipation of the president's tax reform, deregulation and energy policy changes.
"It's been a very very successful year economically for us. We are very pleased on what the president was able to accomplish," he said. "We fundamentally changed the way the economy is structured."
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