Gold Prices Holding Its Ground After IMF Downgrades Global Growth - Kitco News

(Kitco News) -Gold prices are holding on to recent but seeing little reaction after the International Monetary Fund downgraded its economic forecast for the global economy.

In its latest growth forecasts, the IMF said that it sees the global economy growing 3.3% in 2019, down from its previous estimate of 3.5%. For the world's largest economy, the IMF said that it sees the U.S. growing by 2.3% this year, down from its previous forecast of 2.5%.

Analysts mostly expected the downgrade, so there has been muted reaction within financial markets. Gold prices are holding on to modest gains, trading near a one-week high in initial response to the economic data. June gold futures last traded at $1,308.80 an ounce, up 0.53% on the day.

The IMF said that although growth prospects are expecting to pick up in the second half of the year, risks are tilted to the downside because of growing geopolitical uncertainty and ongoing trade disputes.

"While the overall outlook remains benign, there are many downside risks. There is an uneasy truce on trade policy, as tensions could flare up again and play out in other areas (such as the auto industry) with large disruptions to global supply chains," the IMF said in its report.

The IMF also said high levels of public and private-sector debt could exacerbate the downside risks.

The outlook could be positive for gold prices. The IMF warned that further economic weakness could weigh on market sentiment.

"The potential remains for sharp deterioration in market sentiment, which would imply portfolio reallocations away from risk assets, wider spreads over safe-haven securities, and generally tighter financial conditions," the IMF said.

Adam Button, managing director at Forexlive.com, said that the latest IMF forecasts do not paint a pretty picture for investors.

"It was largely expected, but it's a reminder that the entire reversal in market sentiment was based on a turn in central banks, not a turn in the real economy," he said.

Looking at other domestic forecasts, the IMF said that it sees the Eurozone economy growing 1.3% this year, down from its previous estimate of 1.6%. Canada's economy is expected to grow 1.5%, down from the prior forecast of 1.9%.

The one bright spot in the IMF report is in China; the fund increased its 2019 forecast to 6.3%, up from its previous projection of 6.2%.

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https://www.kitco.com/news/2019-04-09/Gold-Prices-Holding-Its-Ground-After-IMF-Downgrades-Global-Growth.html

2019-04-09 13:12:00Z
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Carlos Ghosn says he's the victim of a conspiracy by 'backstabbing' Nissan execs - CNN

"This is about a plot, this is about conspiracy, this is about backstabbing," Ghosn said in the seven-minute video, which was recorded before he was arrested last week in Japan for a fourth time.

Ghosn, who once led a global autos alliance that consisted of Renault (RNLSY), Nissan and Mitsubishi Motors, claimed in the video that fears over a merger had prompted a revolt at Nissan and led to his ouster.

Neither Ghosn nor his lawyer, Junichiro Hironaka, offered a response to the latest allegations of financial misconduct that prompted the auto executive's arrest and return to jail.

Nissan declined to comment on the video, but a spokesperson for the company said an "internal investigation has uncovered substantial evidence of blatantly unethical conduct" by Ghosn.

"The company's focus remains on addressing weaknesses in governance that failed to prevent this misconduct," the spokesperson added.

Japanese prosecutors accused Ghosn last week of siphoning off $5 million in payments made by Nissan (NSANF) to a dealer that he controlled.

Ghosn is awaiting trial on separate charges that he understated his income for years and abused his position by transferring personal investment losses to Nissan. He has denied those charges.

"Unless Ghosn can offer evidence showing he did not steal from Nissan, his position is untenable," said Stephen Givens, who has been practicing law in Japan for more than 30 years.

"If the facts are as suggested, this is devastating for Ghosn," added Givens.

Hironaka told reporters that he would file a special appeal to Japan's Supreme Court on Wednesday, arguing that there was no reason for Ghosn's rearrest.

Ghosn is now back at the Tokyo jail where he was held for 108 days until he posted $9 million bail in March. Prosecutors can hold Ghosn until April 24, after which they must indict or release him.

His arrest and detention has led to scrutiny of Japan's judicial system, which allows suspects to be questioned without a lawyer. Prosecutors in Japan also boast an extremely high conviction rate.

Hironaka criticized the treatment of Ghosn on Tuesday, saying the morning raid that preceded his latest arrest was "inhumane."

Lawyers, including former public prosecutors, say that complaints of human rights abuse will do little to aid Ghosn's defense when his trial begins later this year.

Renault unveiled new allegations against Ghosn last week, claiming that expenses incurred by its former CEO and chairman involved "questionable and concealed practices" that violated its ethics rules.

The French carmaker also announced Ghosn's resignation from its board.

Asked Tuesday whether Ghosn had any regrets about the nearly 20 years he spent leading Nissan, Hironaka said:

"He's saying it is a conspiracy. He doesn't think there is anything to regret."

Nissan cut its last remaining ties with Ghosn on Monday when shareholders voted to oust him from the board.

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https://www.cnn.com/2019/04/09/business/carlos-ghosn-video-nissan/index.html

2019-04-09 12:54:00Z
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Saudi Aramco bond offering attracts massive $100 billion in investor interest - CNBC

Saudi Aramco has received bids for more than 10 times the $10 billion it was expected to raise in a debut international bond issue, with the world's largest oil producer due to set the price of its bonds later on Tuesday.

Initially, the six-part deal had been expected to be at least $10 billion in size, but a source familiar with the situation said that orders have topped $100 billion.

The first-ever debt issuance from Aramco has sparked massive global interest, with the move offering investors greater visibility into the financial performance of the world's most profitable company.

Saudi Arabia's state-controlled energy giant is marketing a landmark U.S. dollar denominated debt issue split into six tranches, with maturities ranging from three to 30 years.

"Everyone knew the size was going to be big but what is worth highlighting is that the quality is impressive — much better than the market had been expecting," Mohieddine Kronfol, chief investment officer of Global Sukuk and MENA Fixed Income at Franklin Templeton Investments, told CNBC via telephone on Tuesday.

It is a "high quality and low-risk offering" which offers market participants a chance to take a serious look at a country which has historically been underweight on investment portfolios, Kronfol said.

Before opening the books on Monday, Aramco's debut international bond sale had already attracted over $30 billion in demand, Saudi Energy Minister Khalid al-Falih said Monday, while speaking at the inaugural Gulf Intelligence Saudi Arabia Energy Forum in Riyadh.

Market participants were thought to be so keen to buy the bonds, they were willing to risk ending up getting a lower return than on Saudi sovereign debt, Reuters reported, citing people familiar with the matter.

Aramco is marketing the new bonds at a price in line with Saudi government bonds.

Earlier this month, Aramco received an "A+" rating from Fitch and an "A1″ rating from Moody's in its first ever credit ratings, following 2018 earnings that dwarfed those of international oil majors.

Saudi Arabia has already seen formidable success in its recent tapping of the bond market: It issued $7.5 billion in sovereign bonds in January which drew an impressive $27 billion in orders.

Saudi Arabia has "A1" and "A+" ratings from agencies Moody's and Fitch, respectively, a sign of reliability and low risk for investors.

The bond issue, announced last week, is also thought to be designed to help raise funds for a down payment on the oil giant's $69.1 billion purchase of a majority stake in Saudi petrochemicals firm Sabic.

It also comes around six months after the murder of Jamal Khashoggi in the Saudi consulate of Istanbul. Intelligence agencies in the U.S. have since concluded the Saudi crown prince ordered the killing of Khashoggi.

Riyadh denies that Saudi Crown Prince Mohammed bin Salman was involved in the murder.

Khashoggi's killing sparked concerns that international investors would shun the kingdom, but bond buyers do not appear ready to overlook an investment opportunity in Saudi Arabia — the world's largest oil exporter.

"It gives some impetus or renewed credibility to the reform agenda in Saudi Arabia, especially after a fairly challenging 2018," Kronfol said.

The bond sale also brings the idea of Aramco's initial public offering (IPO) "back on the table," he added.

Aramco has postponed its long-awaited stock market debut several times and now expects to list shares in 2021. The IPO is looking to drum up cash for a government looking to significantly reduce its budget deficit and diversify its economy beyond oil.

— CNBC's Natasha Turak and Tom DiChristopher contributed to this report.

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2019-04-09 11:24:50Z
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Carlos Ghosn says he's the victim of a conspiracy by 'backstabbing' Nissan execs - CNN

"This is about a plot, this is about conspiracy, this is about backstabbing," Ghosn said in the seven-minute video, which was recorded before he was arrested last week in Japan for a fourth time.

Ghosn, who once led a global autos alliance that consisted of Renault (RNLSY), Nissan and Mitsubishi Motors, claimed in the video that fears over a merger had prompted a revolt at Nissan and led to his ouster.

Neither Ghosn nor his lawyer, Junichiro Hironaka, offered a response to the latest allegations of financial misconduct that prompted the auto executive's arrest and return to jail.

Nissan declined to comment on the video.

Japanese prosecutors accused Ghosn last week of siphoning off $5 million in payments made by Nissan (NSANF) to a dealer that he controlled.

Ghosn is awaiting trial on separate charges that he understated his income for years and abused his position by transferring personal investment losses to Nissan. He has denied those charges.

"Unless Ghosn can offer evidence showing he did not steal from Nissan, his position is untenable," said Stephen Givens, who has been practicing law in Japan for more than 30 years.

"If the facts are as suggested, this is devastating for Ghosn," added Givens.

Hironaka told reporters that he would file a special appeal to Japan's Supreme Court on Wednesday, arguing that there was no reason for Ghosn's rearrest.

Ghosn is now back at the Tokyo jail where he was held for 108 days until he posted $9 million bail in March. Prosecutors can hold Ghosn until April 24, after which they must indict or release him.

His arrest and detention has led to scrutiny of Japan's judicial system, which allows suspects to be questioned without a lawyer. Prosecutors in Japan also boast an extremely high conviction rate.

Hironaka criticized the treatment of Ghosn on Tuesday, saying the morning raid that preceded his latest arrest was "inhumane."

Lawyers, including former public prosecutors, say that complaints of human rights abuse will do little to aid Ghosn's defense when his trial begins later this year.

Renault unveiled new allegations against Ghosn last week, claiming that expenses incurred by its former CEO and chairman involved "questionable and concealed practices" that violated its ethics rules.

The French carmaker also announced Ghosn's resignation from its board.

Asked Tuesday whether Ghosn had any regrets about the nearly 20 years he spent leading Nissan, Hironaka said:

"He's saying it is a conspiracy. He doesn't think there is anything to regret."

Nissan cut its last remaining ties with Ghosn on Monday when shareholders voted to oust him from the board.

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https://www.cnn.com/2019/04/09/business/carlos-ghosn-video-nissan/index.html

2019-04-09 11:00:00Z
52780264426143

Carlos Ghosn says he's the victim of a conspiracy by 'backstabbing' Nissan execs - CNN

"This is about a plot, this is about conspiracy, this is about backstabbing," Ghosn said in the seven-minute video, which was recorded before he was arrested last week in Japan for a fourth time.

Ghosn, who once led a global autos alliance that consisted of Renault (RNLSY), Nissan and Mitsubishi Motors, claimed in the video that fears over a merger had prompted a revolt at Nissan and led to his ouster.

Neither Ghosn nor his lawyer, Junichiro Hironaka, offered a response to the latest allegations of financial misconduct that prompted the auto executive's arrest and return to jail.

Nissan declined to comment on the video.

Japanese prosecutors accused Ghosn last week of siphoning off $5 million in payments made by Nissan (NSANF) to a dealer that he controlled.

Ghosn is awaiting trial on separate charges that he understated his income for years and abused his position by transferring personal investment losses to Nissan. He has denied those charges.

"Unless Ghosn can offer evidence showing he did not steal from Nissan, his position is untenable," said Stephen Givens, who has been practicing law in Japan for more than 30 years.

"If the facts are as suggested, this is devastating for Ghosn," added Givens.

Hironaka told reporters that he would file a special appeal to Japan's Supreme Court on Wednesday, arguing that there was no reason for Ghosn's rearrest.

Ghosn is now back at the Tokyo jail where he was held for 108 days until he posted $9 million bail in March. Prosecutors can hold Ghosn until April 24, after which they must indict or release him.

His arrest and detention has led to scrutiny of Japan's judicial system, which allows suspects to be questioned without a lawyer. Prosecutors in Japan also boast an extremely high conviction rate.

Hironaka criticized the treatment of Ghosn on Tuesday, saying the morning raid that preceded his latest arrest was "inhumane."

Lawyers, including former public prosecutors, say that complaints of human rights abuse will do little to aid Ghosn's defense when his trial begins later this year.

Renault unveiled new allegations against Ghosn last week, claiming that expenses incurred by its former CEO and chairman involved "questionable and concealed practices" that violated its ethics rules.

The French carmaker also announced Ghosn's resignation from its board.

Asked Tuesday whether Ghosn had any regrets about the nearly 20 years he spent leading Nissan, Hironaka said:

"He's saying it is a conspiracy. He doesn't think there is anything to regret."

Nissan cut its last remaining ties with Ghosn on Monday when shareholders voted to oust him from the board.

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https://www.cnn.com/2019/04/09/business/carlos-ghosn-video-nissan/index.html

2019-04-09 10:01:00Z
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Tariffs Hit Appliance Shoppers, Manufacturers In Different Ways - NPR

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Washing machines, dryers and other appliances are seen for sale at a Lowe's home improvement store in Washington, D.C., Sept. 27, 2018. Saul Loeb/AFP/Getty Images hide caption

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It was a daunting task. Amid a major renovation, Jani Mussetter needed a lot of appliances: a washer, dryer, refrigerator, freezer, dishwasher and stove. As she visited showrooms in January, a stressful thing kept coming up: warnings of a price increase on Feb. 1.

For Mussetter, shopping for higher end appliances, that potentially meant paying hundreds of dollars more. And why? "They said, because of all the tariffs," the San Francisco resident says.

Tariffs and the trade war have been in the news for more than a year, since President Trump began imposing higher taxes on various imported products and materials.

For regular American shoppers, major household appliances perfectly illustrate the complicated reality of the trade dispute. One tariff was a boon to some domestic manufacturers. But other tariffs hiked costs for the entire industry worldwide. Prices on appliances are now slowly recovering from their biggest increase in about five years.

Whirlpool's gamble

Whirlpool, a leading American appliance maker, is at the heart of the issue. Its prices had barely changed for many years, says G.research housing analyst Alvaro Lacayo. Then, in 2018, he says, "you saw a big tick upward."

At first, higher prices were welcome news for Whirlpool. They reflected the company's victory over its two main foreign competitors, South Korea's LG and Samsung.

Whirlpool — which also own Maytag, Jenn-Air and other brands — had spent years arguing that LG and Samsung had been "dumping appliances into the U.S. market at below cost, rendering competition irrational," as Lacayo put it.

In January 2018, President Trump agreed with Whirlpool. He set a new tariff, or tax, on imported washing machines, starting at 20 percent. So, selling washers to Americans became more expensive for foreign companies. And domestic manufacturers like Whirlpool could finally raise prices.

But then, Trump imposed more tariffs, on metals including aluminum and steel. Steel, in particular, is critical to building almost any appliance.

Suddenly, appliance makers everywhere, including Whirlpool, began complaining about the rising cost of raw materials. They had little choice but to start raising their own prices.

"Global steel costs have risen substantially and, particularly in the U.S., they have reached unexplainable levels," Whirlpool CEO Marc Bitzer said during an analyst call in July 2018.

What happens next

Steve Sheinkopf owns Yale Appliance & Lighting in the Boston area, and he's a third-generation owner. "We have been here for almost 100 years now, it's hard to believe," he says.

Many brands Sheinkopf works with — like Wisconsin-based Sub-Zero and Wolf or Germany's Thermador — regularly inch up their prices, he says, but the increases in the past year have been bigger than most.

Sheinkopf predicts that appliance prices are probably stabilized at this point, at least for a while. But for shoppers who chase sales and specials, he says, promotions haven't been as good as they used to be three to four years ago.

Overall, prices of major appliances tracked by the consumer price index are starting to tick down month-to-month. But they are still higher than they were last year.

"On certain products, you could be looking at a 14- to 16-percent increase from last year to this year," Sheinkopf says. "When you talk about [washing] machines that people want to buy, front-loaders, I think you're looking at $200 to $400 difference versus last year."

Many companies stretched some of the price increases into early 2019, still citing high costs of raw materials as well as changes in the currency market and labor costs. That's what Mussetter experienced as she rushed to buy appliances for her remodel before Feb. 1.

"I'd be really bummed if I was walking in today," she says with a laugh. Mussetter did manage to buy all her appliances ahead of the price jump. Later, she learned this saved her $1,250.

And one other thing happened last year, Whirlpool's Korean competitors, LG and Samsung, fast-tracked new manufacturing plants — in America. It's great news for American jobs. But for Whirlpool?

"I think this is the biggest challenge they'll ever have," Sheinkopf says.

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2019-04-09 09:03:00Z
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Why you should fill up on gas on Monday mornings (and never on Friday afternoons) - USA TODAY

Nathan Bomey USA TODAY

Published 4:00 AM EDT Apr 9, 2019

Want to save money at the pump? Fill up on Monday morning on your way to work.

That's the advice of GasBuddy, the fuel-savings app that tracks real-time data from more than 150,000 gas stations throughout the country.

In a study provided exclusively to USA TODAY, GasBuddy assessed the best day to fill up and the worst day to fill up nationwide and in each state. 

While Monday is the best day on average nationwide to fill up, Friday is the worst day. (Scroll down to see state-by-state details on the best and worst time to get fuel.)

"Very early in the week, when gas stations are generally a little bit quieter traffic-wise, is a great time to fill up," said Patrick DeHaan, head of petroleum analysis for GasBuddy. "We generally see more volatility and higher prices later in the week."

On Mondays, some prices tick upward in the afternoon, so it's often a good idea to fill up in the morning. On Fridays, prices often spike in part because some stations are seeking to make more money ahead of weekend trips.

Stations are busiest on Friday afternoons around 5 p.m., according to GasBuddy.

Drivers who fill up exclusively on Friday could save $20 to $30 more year by switching to Monday, according to GasBuddy.

There are exceptions. For example, Tuesday is the best day to fill up in 19 states. 

Living in Utah? The best day is Sunday. Hawaii? Try Wednesday.

While the national average price of gas peaks on Fridays, Saturday is the worst day to fill up in 16 states, while Sunday is the worst day in 12.

The best day to buy gas, by state:

Monday: Alaska, Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Idaho, Illinois, Indiana, Kentucky, Maine, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, Washington, West Virginia, Wyoming

Tuesday: Alabama, Arkansas, Delaware, Georgia, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Wisconsin

Wednesday: Hawaii

Sunday: Utah

The worst day to buy gas, by state

Saturday: Alabama, Connecticut, Hawaii, Kansas, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, Oregon, South Carolina, South Dakota

Sunday: Arkansas, California, Colorado, Delaware, Georgia, Iowa, Oklahoma, Rhode Island, Tennessee, Texas, Virginia, Wisconsin

Friday: District of Columbia, Kentucky, Louisiana, Minnesota, North Carolina, North Dakota, Pennsylvania, Vermont, Washington

Thursday: Arizona, Florida, Idaho, Illinois, Indiana, Michigan, Ohio, West Virginia

Wednesday: Alaska, Nevada, New York, Wyoming

Tuesday: Utah

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

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2019-04-09 08:00:00Z
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