The CEOs of nearly 200 companies just said shareholder value is no longer their main objective - CNBC

Jamie Dimon, CEO, JP Morgan Chase, speaking at the Business Roundtable CEO Innovation Summit, December 6, 2018.

Janhvi Bhojwani | CNBC

Shareholder value is no longer the main focus of some of America's top business leaders.

The Business Roundtable, a group of chief executive officers from major U.S. corporations, issued a statement Monday with a new definition of the "purpose of a corporation."

The re-imagined idea of a corporation drops the age-old notion that corporations function first and foremost to serve their shareholders and maximize profits. Rather, investing in employees, delivering value to customers, dealing ethically with suppliers and supporting outside communities are now at the forefront of American business goals, according to the statement.

"While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders," said the statement, which signed by 181 CEOs. "We commit to deliver value to all of them, for the future success of our companies, our communities and our country."

"The American dream is alive, but fraying," said Jamie Dimon, chairman and CEO of JPMorgan Chase & Co. and chairman of Business Roundtable, in a press release.

Along with Dimon, the statement also received signatures from chiefs Jeff Bezos, Tim Cook, Brian Moynihan, Dennis A. Muilenburg, Mary Barra and many more.

"Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term. These modernized principles reflect the business community's unwavering commitment to continue to push for an economy that serves all Americans," said Dimon.

Here is the full Business Roundtable statement.

Statement on the Purpose of a Corporation

Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all.

Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide health care; generate and deliver energy; and offer financial, communications and other services that underpin economic growth.

While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders. We commit to:

• Delivering value to our customers. We will further the tradition of American companies leading the way in meeting or exceeding customer expectations.
• Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.
• Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners to the other companies, large and small, that help us meet our missions.
• Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.
• Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with shareholders.

Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country.

Let's block ads! (Why?)

https://www.cnbc.com/2019/08/19/the-ceos-of-nearly-two-hundred-companies-say-shareholder-value-is-no-longer-their-main-objective.html

2019-08-19 11:45:34Z
52780357567523

The Hill's Morning Report - Trump on defense over economic jitters | TheHill - The Hill

Welcome to The Hill’s Morning Report. Happy Monday! Our newsletter gets you up to speed on the most important developments in politics and policy, plus trends to watch. Co-creators are Alexis Simendinger and Al Weaver (CLICK HERE to subscribe!). On Twitter, find us at @asimendinger and @alweaver22.

President TrumpDonald John TrumpO'Rourke: Trump driving global, U.S. economy into recession Manchin: Trump has 'golden opportunity' on gun reforms Objections to Trump's new immigration rule wildly exaggerated MORE is scrambling to refute criticism about his stewardship of the economy as the rising odds of a recession pose a dire threat to his reelection.

Trump and his top economic aides are on the defensive this week after signals of an impending downturn sent financial markets into shivers last week.

“I don’t think we’re having a recession,” Trump told reporters on Sunday as he returned to Washington after a 10-day break in New Jersey. “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they’re loaded up with money.”

The president also tweeted his confidence that sky-is-falling economic predictions are wrong. But he has been nervous enough to privately consult with bank CEOs and market watchers by phone to get their input.

“Our economy is the best in the world, by far,” the president wrote shortly before ending his New Jersey vacation on Sunday and returning to Washington. “Lowest unemployment ever within almost all categories. Poised for big growth after trade deals are completed. Import prices down, China eating Tariffs. Helping targeted Farmers from big Tariff money coming in. Great future for USA!”

Trump has publicly refuted the idea that his tariffs on imports from China raised prices for American consumers, ate away at U.S. farmers’ market share and injected costly uncertainty into U.S. businesses, which were forced to improvise to alter their supply chains. Instead, the president blames Federal Reserve monetary policy, Democrats in Congress and the news media for talk of a recession (The Hill).  

While Trump is not responsible for slowing global growth, economists say his trade battles with China and Europe have taken an unmistakable toll. Consumer spending remains the engine of U.S. expansion, and the president was sufficiently anxious about the make-or-break holiday shopping season that he put a hold on additional tariffs on Chinese goods through Dec. 15.

As Niall Stanage reports, the president tells voters again and again that it’s the Trump economy that makes him worthy of a second term. If the U.S. economy contracts, unemployment rises or financial markets nosedive next year, the president’s grip on the White House severely weakens (The Hill).    

 

The Associated Press reported that Trump, susceptible to conspiracy theories and quick to see himself at the center of things, has expressed worries in private about Wall Street but is skeptical about some economic indicators, wondering if the media and establishment figures are manipulating the data to make him look bad, according to two Republicans close to the White House.

The U.S. manufacturing sector, which has a starring role in Trump’s narrative about “America First” economic renewal, is contracting, reports Niv Elis. The sector has already seen two straight quarters of decline, meeting the technical definition of a recession. In 2016, Trump persuaded voters in Pennsylvania, Wisconsin and Michigan, as well as other industrial states, that shuttered plants would reopen, return to the United States from Mexico and Asia, with jobs and wages in manufacturing recovering in the process. In a world of global competition, robotics, new technologies and cheap international labor, that is not the manufacturing story of 2019 (The Hill).

The New York Times: Is a new recession imminent? Here’s how one could happen.

The Washington Post: American consumers are holding up the global economy, but for how long?

The Associated Press: Economists survey: 34% expect a U.S. recession in 2021.

The Hill: White House national economic adviser Larry KudlowLawrence (Larry) Alan KudlowMORE offers reassurances amid recession fears.

The Hill: Trump faces crucial decisions on economy, guns.

More administration news … Both The New York Times and The Washington Post published Sunday features about Trump’s hardline immigration adviser, Stephen MillerStephen MillerTop immigration aide experienced 'jolt of electricity to my soul' when Trump announced campaign New green card restrictions likely would've excluded Trump and Cuccinelli's ancestors Chris Wallace becomes Trump era's 'equal opportunity inquisitor' MORE. … The New York Times reports an exodus of migrants from Central America is being driven by violence against women, at the same time that the United States seeks to deny those women asylum.

LEADING THE DAY

POLITICS & CAMPAIGNS: Democratic presidential candidates have found a reliable line of attack in targeting the president throughout this calendar year: criticizing his handling of racially divisive and violent incidents, headlined by those in Charlottesville, Va., and El Paso, Texas. 

As Brett Samuels writes, candidates have grown increasingly comfortable labeling Trump a racist or a white supremacist, pointing to his equivocations in the aftermath of the August 2017 Charlottesville white nationalist rally and the similarities between the anti-immigrant manifesto of the alleged El Paso gunman and Trump’s own rhetoric. 

“[Trump] has given aid and comfort to white supremacists. He’s done the wink and a nod," Sen. Elizabeth WarrenElizabeth Ann WarrenPossible GOP challenger says Trump doesn't doesn't deserve reelection, but would vote for him over Democrat Joe Biden faces an uncertain path The Memo: Trump pushes back amid signs of economic slowdown MORE (D-Mass.) told The New York Times just days after the El Paso shooting that killed 22 people, exhibiting a willingness on the Democratic side to use those terms. 

Trump’s reelection campaign believes the allegations against the president reeks of desperation from the group of candidates vying to take on Trump next year.

"For two years, Democrats called President Trump a Russian agent, and now that the Russia Hoax has fallen apart, they’ve moved on to white supremacy," Trump campaign communications director Tim Murtaugh said.

Dan Balz: Trump has one playbook, and very few plays left in it.

The Washington Post: Former Vice President Dick Cheney to appear at a fundraiser for Trump, RNC.

> Democrats after Cornyn: A slew of Democrats are lining up to challenge Sen. John CornynJohn CornynThe Hill's Campaign Report: Battle for Senate begins to take shape The Hill's Morning Report — Trump and the new Israel-'squad' controversy O'Rourke says he will not 'in any scenario' run for Senate MORE (R-Texas) in 2020, showcasing the party’s optimism of flipping a Senate seat in the historically red state despite former Rep. Beto O’Rourke’s (D-Texas) decision to forego a second consecutive Senate bid. 

O'Rourke’s decision to run for the Democratic presidential nod has sparked intense interest in the race to face Cornyn: Seven Democrats have entered the primary, and one more could join in a state that has not elected a Democratic senator in more than three decades. Headlining the field is MJ Hegar, a military veteran who narrowly lost a House race last year, and Houston City Councilwoman Amanda Edwards. 

Democrats are optimistic they can take out Cornyn, who has served in the Senate for nearly two decades after O'Rourke nearly defeated Sen. Ted CruzRafael (Ted) Edward CruzTrump moves forward with F-16 sale to Taiwan opposed by China The Hill's Campaign Report: Battle for Senate begins to take shape O'Rourke says he will not 'in any scenario' run for Senate MORE (R-Texas) last year. Strategists believe the primary field will present a formidable challenger to Cornyn due to its racial, age, and ideological diversity. However, Republicans view the large primary field as an advantage, arguing a contentious primary could bruise the eventual candidate and use up money ahead of the general election (The Hill).

Politico: Michigan emerges as crucial battleground in fight for the Senate.

The Hill: Republicans plot comeback in New Jersey.

> Polling: Anxiety is growing among politicos as they try to figure out the Democratic primary and, more specifically, polling that has shown a consistent top tier and a lack of moving and shaking among the rest of the candidates. 

Surveys consistently show five candidates clear from the rest of the field, with former Vice President Joe BidenJoe BidenPossible GOP challenger says Trump doesn't doesn't deserve reelection, but would vote for him over Democrat Joe Biden faces an uncertain path The Memo: Trump pushes back amid signs of economic slowdown MORE leading, followed by Warren, Sen. Bernie SandersBernie SandersJoe Biden faces an uncertain path Bernie Sanders vows to go to 'war with white nationalism and racism' as president Biden: 'There's an awful lot of really good Republicans out there' MORE (I-Vt.) and Sen. Kamala HarrisKamala Devi HarrisJoe Biden faces an uncertain path Biden: 'There's an awful lot of really good Republicans out there' Fighter pilot vs. astronaut match-up in Arizona could determine control of Senate MORE (D-Calif.) in some order and South Bend, Ind., Mayor Pete ButtigiegPeter (Pete) Paul ButtigiegButtigieg: We 'probably are' on cusp of recession Chris Wallace becomes Trump era's 'equal opportunity inquisitor' Fighter pilot vs. astronaut match-up in Arizona could determine control of Senate MORE rounding out the top five. 

However, wild variations in the polls in recent days have experts questioning who is up and down, and whether the polls can be trusted as an accurate indicator of the state of the race, as many questioned them in the aftermath of the 2016 election. 

Pollsters say the huge field of candidates is a challenge for the industry, which is also dealing with the continued migration away from landlines toward cell phones and online surveys, which some view as unreliable. Pollsters warn that current surveys shouldn’t be taken as a predictor of who will win (The Hill).

The New York Times: Julián Castro’s Obama moment.

More political headlines … Trump affirmed in remarks to reporters on Sunday that Mike PenceMichael (Mike) Richard PenceFEC chair calls on Trump to provide evidence of NH voter fraud Five years after Yazidi genocide, US warns ISIS is rebounding Log Cabin Republicans endorse Trump MORE will be his running mate in 2020 (Reuters). There had been some speculation that former ambassador to the United Nations Nikki HaleyNimrata (Nikki) HaleyHaley: 'Threats of China on full display' in Hong Kong Juan Williams: Trump's trouble with women Trump: Response to Cummings burglary 'not meant as a wise-guy tweet' MORE would be a candidate to replace Pence on the ticket (CNN). … Former Louisiana Gov. Kathleen BlancoKathleen BlancoMORE (D) died on Sunday at age 76 (The Associated Press).

IN FOCUS/SHARP TAKES

CONGRESS: House Judiciary Committee members are cutting their August recess short and are expected to meet to discuss possible action on gun control legislation weeks in the wake of mass shootings in El Paso and Dayton, Ohio.

The committee is expected to ready a set of bills for consideration in the House when all lawmakers return to Washington on September 9. The legislation will include a high-capacity magazine ban, a measure to prevent people convicted of misdemeanor hate crimes from purchasing firearms and a “red flag” bill to deny guns to those deemed to be a danger to themselves and others (Reuters). 

A September 25 hearing on assault weapons is also on the docket for the committee as Democrats up their calls for those bills to be banned (The Hill). 

> Cursing in Congress: Profanity — once considered a major no-no among those seeking public office — is now no longer considered an earth-shattering political snafu as it becomes a regular happening among lawmakers. 

According to new research by GovPredict, obscene language not including the words "shit" and "f---" has been used at an all-time high by politicians, with 1,225 instances on Twitter so far this year compared to 833 in 2018. GovPredict CEO Emil Pitkin says that the information “shows a stark uptick in the overall usage of curse words by legislators on Twitter” (The Hill).

In a highly-publicized instance in the aftermath of the mass shooting in El Paso, O’Rourke let loose while speaking to reporters, dropping an F-bomb while expressing frustration with the president the news media. 

"He's been calling Mexican immigrants rapists and criminals. Members of the press, what the f---?” said O’Rourke, who also dropped a “Jesus Christ” during a Sunday show interview. 

> Twitter confusion: Sharing a name with a lawmaker can be a tricky business, particularly when the lawmaker in question is Rep. Steve KingSteven (Steve) Arnold KingSteve King says 'left-wing media' and GOP leadership owe him apology after rape, incest comments 11 Essential reads you missed this week I'm not a Nazi, I'm just a dude: What it's like to be the other Steve King MORE (R-Iowa). 

Steve King, a politics editor at Under the Radar magazine, often doesn’t know immediately what the Iowa Republican says when he draws attention online, but he knows exactly when he says it as notifications begin to flood in from his Twitter account. 

“Sometimes I’ll be going about my day and you’ll start to get notifications,” King said. Like others with the same name as a public figure, King will often accidentally be targeted as online critics take to Twitter to call out politicians or debate the day’s latest controversy (The Hill). 

***

INTERNATIONAL: Balking at experts’ projections of a global economic downturn, the Trump administration over the weekend continued to push for a trade accord with China. Officials from both countries will confer again within 10 days, and if progress is not evident, the Trump team will invite counterparts from Beijing to travel back to the United States, White House adviser Kudlow said (Reuters). Trump on Sunday declined to say if he spoke with President Xi Jinping of China. Reports said the two leaders had not spoken over the weekend. 

> Hong Kong: Pro-democracy demonstrations continued peacefully on Sunday in heavy rain (Reuters).

> Afghanistan: At a time when Trump has been looking for a way to withdraw U.S. troops from Afghanistan after 18 years of war, Afghans have expressed suspicions about a proposed peace deal between the United States and the Taliban (The Washington Post). Separately, Trump said on Sunday that peace talks are in flux. “We’ll see what happens. We’ve really got it down to probably 13,000 people [U.S. troops], and we’ll be bringing it down a little bit more, and then we’ll decide” whether to stay, he told reporters. Meanwhile, Islamic State fighters claimed credit on Sunday for a grisly suicide bombing at an Afghan wedding reception that killed 63 people (Reuters).  Afghan President Ashraf Ghani promised on Monday to “eliminate” all of the caliphate’s safe havens (The Associated Press).

> Russia: French President Emmanuel MacronEmmanuel Jean-Michel MacronTrump criticizes France's Macron for sending Iran 'mixed signals' Hillicon Valley: DOJ approves T-Mobile-Sprint merger | Trump targets Google, Apple | Privacy groups seek to intervene in Facebook settlement | Democrats seize on Mueller hearings in election security push On The Money: US growth slows to 2.1 percent | Trump vows response to French tech tax | Trump won't give Apple tariff waivers | House panel releases documents on Nixon tax return request to bolster case against Trump MORE today hosts Russian President Vladimir PutinVladimir Vladimirovich PutinSunday shows - Recession fears dominate Bullock: Putting Cuccinelli in charge of immigration 'like putting Putin in charge of election security' Chris Wallace becomes Trump era's 'equal opportunity inquisitor' MORE in southern France ahead of the Group of Seven summit this month. Macron wants to talk to Putin about Ukraine and is attempting to show Russia it is not entirely ostracized from the club of leading industrialized nations (Reuters). … In Moscow, Defense Minister Sergei Shoigu said on Sunday that Russia will not deploy new missiles as long as the United States shows similar restraint in Europe and Asia. He was speaking in the wake of the Trump administration’s recent withdrawal from a Soviet-era nuclear arms pact that the White House accused Russia of violating (Reuters).

> United Kingdom-Brexit: British officials on Sunday refuted a report published by The Sunday Times drawn from leaked official documents that predicted Britain would face shortages of fuel, food and medicine if it exits the European Union without a transition deal at the end of October (Reuters).

The Morning Report is created by journalists Alexis Simendinger and Al Weaver. We want to hear from you! Email: asimendinger@thehill.com and aweaver@thehill.com. We invite you to share The Hill’s reporting and newsletters, and encourage others to SUBSCRIBE!

OPINION

Trump is right: Mainstream media ‘do a very good job,’ by Glenn C. Altschuler, opinion contributor, The Hill. https://bit.ly/30fEQls

In God’s country: Evangelicals view Trump as their protector. Will they stand with him in 2020? by Elizabeth Bruenig, opinion essay, The Washington Post. https://wapo.st/2ORBOm6

WHERE AND WHEN

Hill.TV’s “Rising” at 9 a.m. EDT features Jeff Weaver, senior adviser to the Sanders presidential campaign; and staff writer Rafael Bernal, who talks about Biden’s recent dust-up with Latino leaders. Find Hill.TV programming at http://thehill.com/hilltv or on YouTube at 10 a.m.

The House is in pro forma sessions until returning to Washington on Sept. 4 to begin consideration of legislation to respond to mass shootings.

The Senate continues to meet pro forma but is not scheduled to return for votes until Sept. 9. 

The president has no public events on his schedule.

The vice president will travel to Michigan to speak to the Detroit Economic Club at 12:10 p.m. EDT.

Secretary of State Mike PompeoMichael (Mike) Richard PompeoLatest pro-democracy rally draws tens of thousands in Hong Kong 63 killed in blast at Afghan wedding as Taliban, US negotiate troop withdrawal Trump meets with national security team on Afghanistan peace plan MORE meets with Angolan Foreign Minister Manuel Domingos Augusto at 3 p.m.

The Washington Post Live 2020 interview series with presidential candidates turns to Sen. Kirsten GillibrandKirsten Elizabeth GillibrandGillibrand: Rosy economic outlook not 'reflected in everyday, kitchen-table issues families are facing' Chris Wallace becomes Trump era's 'equal opportunity inquisitor' Steve King to Gillibrand: Odds of me resigning same as yours of winning presidential nomination MORE (D-N.Y.) at 9 a.m. with journalist Robert Costa. Information is HERE. 

ELSEWHERE

➔ State Watch: Illinois serves as a sobering example of why many states aren’t ready to secure their voting systems in 2020. Illinois is spending millions of dollars to safeguard its system, but it might not be enough as the number of nations committing data breaches multiplies (Bloomberg Businessweek). ...State tax revenues from marijuana sales are a challenge to size up, let alone forecast, according to a new study released today by the Pew Charitable Trusts. State governments across the country are pulling in millions of dollars from taxes on legalized marijuana, but the revenue fluctuates wildly as new markets for a once-illegal product struggle to become established, Reid Wilson reports.

➔ Health care: Women's access to birth control and reproductive health care nationwide could be drastically impacted by Planned Parenthood’s exit today from the federal government’s family planning program, which under the Trump administration restricts funding for abortion. Women in rural states such as Utah, Minnesota and Vermont may have difficulty locating reproductive care, whether or not they seek to terminate pregnancies, under the effects of Trump administration rule changes (The Hill) … U.S. fertility clinics are struggling with a growing number of abandoned embryos and the question of what to do with them (NBC News).

➔ News media: In an increasingly partisan and siloed news environment, and with Trump and other leaders stoking distrust in the media, “Fox News Sunday” anchor Chris WallaceChristopher (Chris) WallaceChris Wallace becomes Trump era's 'equal opportunity inquisitor' Democrats point to Trump rhetoric on immigration in wake of two mass shootings Buttigieg addresses backlash after police shooting: 'The badge has a history' MORE has earned a reputation as a tough but fair interviewer and debate moderator who has extracted provocative information and responses from world leaders and politicians. "People come up to me at airports or restaurants or whenever I’m out in public and praise me a lot for being fair," Wallace, 71, said in an interview with Brett Samuels. "While on the one hand I appreciate it, on the other hand it kind of depresses me, because when I started out in the business, being fair was the baseline — that you tried to be as fair, as objective, as even-handed as you could be" (The Hill).

THE CLOSER

And finally … Joy Ryan, 89, confided to her grandson, Brad Ryan, a few years ago that one of her regrets in life was not traveling more. She had never seen an ocean or a mountain. So Brad, who is studying to be a veterinarian, decided to take his grandmother on a trip to a national park in 2015, which turned into 29 parks, and now they have a quest to see all 61 national parks together. Joy, whose sense of humor and adventurous spirit are chronicled on Instagram, Facebook and during many TV interviews, says, “We’re having a ball” (ABC’s “Good Morning America”). More video!! BuzzFeed News coverage is HERE.

Let's block ads! (Why?)

https://thehill.com/homenews/morning-report/457904-the-hills-morning-report

2019-08-19 10:26:17Z
52780357499443

Jackson Hole, retail earnings — What to know in the week ahead - Yahoo Finance

After a roller coaster week for markets, this week is gearing up to be another busy one as events with plenty of market-moving potential grab the attention of investors.

As interest rates remain in focus, market watchers will be paying extremely close attention to the Federal Reserve and its chairman Jerome Powell this week. On Wednesday, The Federal Open Market Committee (FOMC) will be releasing its July meeting minutes, and on Friday, Powell will be speaking to kick off the Fed’s annual Jackson Hole Economic Policy Symposium.

Following the Fed’s first rate cut in more than a decade, the meeting minutes are expected to provide some additional light around its decision. Economists were widely expecting the 25 basis point cut in July; however, it was revealed that two members of the committee that voted against the cut. “The dissents from George and Rosengren, the only two hawkish voters this year, on lowering the policy rate may have not fully reflected the amount of debate that occurred during the July meeting on appropriate policy action,” Nomura wrote in a note Friday. “In that regard, it will be important to evaluate divisions in the FOMC to determine how high of a hurdle it will be for some participants to support another rate cut later this year.”

UBS expects that the minutes will illustrate a more detailed picture of which members wanted larger cuts, while some saw no need for a rate cut. “We infer that the decision was contentious. We expect that "some" FOMC members (in our view including the Chair, Williams, and Clarida) pushed for a larger rate cut, while several (meaning at least 6) saw no reason to cut,” the firm wrote in a note to clients Thursday.

Meanwhile, the focus Friday morning will be on Fed Chairman Powell when he delivers his speech in Jackson Hole. Powell is expected to clarify the Fed’s future monetary policy path and explain whether or not the Fed plans on continuing to cut rates or not.

TD Securities does not expect much clarity from the Fed at its Jackson Hole conference. “We don't think that the Fed will provide much new information on either front. Jackson Hole is an academic conference and not the appropriate forum to announce a change in policy. The Committee is also divided on the outlook for rates and the impact of weak global growth and trade uncertainty on the US remains uncertain.”

UBS economists agree with TD Securities and doesn’t think any notable comments will come out of Jackson Hole. “Given the July decision, when the cut was only 25bps and Powell seemed unable to lead the FOMC to a bigger cut, the risk of any speech disappointing market expectations for dovishness is high.”

Federal Reserve Governor Jerome Powell attends the Federal Reserve Bank of Kansas City's annual Jackson Hole Economic Policy Symposium in Jackson Hole, Wyoming August 28, 2015. REUTERS/Jonathan Crosby

On the corporate earnings side, retailers will take centerstage this week. Department store earnings continue to disappoint, but big-box retail is telling a different story about the retail industry. Last week, Walmart surprised investors with a strong quarter with growth in numerous categories. Even as additional tariffs loom, Walmart was able to deliver strong results. As many other big names gear up to report this week, investors will be looking for additional clues on how the retailers plan on tackling tariffs, as the trade war rages on.

Some of the heavyweights reporting this week include Home Depot, Kohl’s, Lowe’s, Target, Nordstrom and Dick’s Sporting Goods.

The yearlong U.S.-China trade war has been taking no prisoners. Corporations both in the U.S. and abroad have been feeling the heat, but Huawei has really been one of the main companies caught in the crosshairs. Earlier this year, the Trump administration blacklisted the Chinese tech giant and banned U.S. companies from selling their supplies to Huawei. The Commerce Department granted Huawei a reprieve in May that is set to expire on Monday. The U.S. is expected to announce and a 90-day extension to that reprieve, according to Reuters.

Earnings calendar

Monday: Estee Lauder (EL), Weibo (WB) before market open; Baidu (BIDU), iQIYI (IQ) after market close

Tuesday: Home Depot (HD), Kohl’s (KSS), TJX Companies (TJX) before market open; Toll Brothers (TOL), Urban Outfitters (URBN) after market close

Wednesday: Jumia Tech (JMIA), Lowe’s (LOW), Target (TGT) before market open; L Brands (LB), Nordstrom (JWN) after market close

Thursday: Dick’s Sporting Goods (DKS), Hormel Foods (HRL) before market open; Gap (GPS), Ross Stores (ROST), Salesforce.com (CRM) after market close

Friday: Foot Locker (FL) before market open

Economic calendar

Monday: N/A

Tuesday: N/A

Wednesday: MBA Mortgage Applications, week ended Aug 16 (21.7% prior); Existing Home Sales, July (5.40 million expected; 5.27 million in June); FOMC Meeting Minutes

Thursday: Initial Jobless Claims, week ended Aug 17 (216,000 expected, 220,000 prior); Continuing Claims, week ended Aug 10 (1.726 million prior); Bloomberg Consumer Comfort, week ended Aug 18 (61.2 prior); Markit US Manufacturing PMI, August (50.5 expected, 50.4 in July); Markit US Services PMI, August (52.8 expected, 53.0 in July); Markit US Composite PMI, August (52.6 in July); Leading Index, July (0.2% expected, -0.3% in June)

Friday: New Home Sales, July (644,000 expected, 646,000 in June)

—

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

More from Heidi:

• Olive Garden website glitches during Lifetime Pasta Pass promotion

• Millennials spent $453 million on avocados last year: Study

• Olive Garden to offer Lifetime Pasta Passes: Unlimited pasta, soup, salad and breadsticks for life

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

Let's block ads! (Why?)

https://finance.yahoo.com/news/jackson-hole-retail-earnings-what-to-know-in-the-week-ahead-161352797.html

2019-08-18 16:13:00Z
52780356277827

This former Googler is tired of the crazy, Bay Area housing prices - Business Insider

Adam Singer giving a keynote at MozCon, a digital marketing conference, in Seattle.Adam Singer

• Former Google marketing manager, Adam Singer, says after living in the Bay Area for over a decade, he's had enough of the astronomical home prices and the city not making strides to improve living conditions. 
• In a recent tweetstorm, Singer aired his hang-ups with San Francisco and announced that after a trip to Austin, he and his wife purchased land and would be moving to the Texas state capital. 
• "None of my San Francisco or Bay Area friends were surprised," Singer told Business Insider of his relocation. "They're like, 'It's totally reasonable to leave.' No one's fighting to keep me here." 
• A recent report by the real estate company Compass found that to afford a median-priced home in the San Francisco Bay Area, a person would need to earn more than $340,000 per year. 
• Visit Business Insider's homepage for more stories.

Adam Singer is tired of San Francisco. 

The former Google marketing manager says after living in the Bay Area for over a decade, he's had enough of the astronomical home prices and the city not making progress to improve living conditions. 

In a tweetstorm last Wednesday, Singer aired his hang-ups with San Francisco and announced that after a trip to Austin, he and his wife (and their rescue dog, Dash the Dingo) would be moving to the Texas capital, which is increasingly known for its hot startup scene as much as it's bar-b-que.

Might as well just share while here & excited (got to meet so many creative, energizing people). Pulled trigger & purchased land today. Done deal. Will be in SF awhile longer while they build our house my wife is designing. Plenty of time to say goodbye. New adventures soon!

— Adam Singer (@AdamSinger) August 15, 2019

"So Austin suburbs are beautiful. Houses really reasonably priced. Easy ride to the city. Great food and music scene nearby. What's the catch," Singer tweeted. "For same price of your SF rental you can afford basically as much house as you want here. Crazy." 

Singer says he recently purchased land in Austin and will be working with a local design center on the construction of his home. 

Read more: 11 facts about San Francisco's housing market that will make you glad you live somewhere else

With housing prices in the San Francisco Bay Area continuing to reach record highs, many, like Singer, are questioning whether it's worth it to live in the region at all. A recent study found that 44% of Bay Area residents polled said they're likely to leave within the next few years. High housing prices were the top reason residents were feeling the pressure to move.  

Another report by the real estate company Compass found just how costly it can be to buy a home in the San Francisco Bay Area. Including mortgage payments, taxes, and insurance, owning a median-priced home in the Bay Area runs around $8,500 per month. And in order to afford that kind of monthly expense, a person would need to earn more than $340,000 per year, the report said. 

The former Googler told Business Insider in an interview this week that after two years of househunting across the Bay Area, seeing the type of homes they could actually afford became all too frustrating. 

"I'm not paying two million dollars to live in some [baby] boomer's starter home next to a strip mall," Singer said, in reference to certain houses he looked at south of San Francisco, near San Jose. 

In Austin, Singer says he was able to find "gorgeous" homes for under a half-million dollars. 

Same price SF/Austin (viewed this one but didn't buy). Sure live in the filing cabinet where you hear neighbors play who let the dogs out at 4am or have the custom built bespoke castle with same if not more professional opportunity closeby + prop values have insane room to run. pic.twitter.com/RMGI3iwXyx

— Adam Singer (@AdamSinger) August 15, 2019

A "NIMBY" state

The former Googler puts much of the blame of San Francisco's housing prices on city officials who he says don't want to increase the number of condos and apartments in the area. Other cities, like Austin and Seattle, Singer says, have been able to keep housing prices from reaching untouchable rates because they've been willing to develop. 

"People think supply and demand economics don't exist as soon as you get into the Bay Area," Singer said. "It's not a thing here." 

Singer also points the finger at long-time San Francisco residents who bought their homes years before prices spiked. Those owners are cashing on the demand from renters, Singer says, and thus have little incentive to advocate for the city to increase its supply of homes. 

"For the people who already own here, I think they quietly don't give a f—-," Singer said. "They have theirs. Whether they want to admit it or not, this is a NIMBY state. What they will accomplish — they will squeeze out the middle of San Francisco." (NIMBY is an acronym for "not in my backyard," often used to describe opposition to development in a particular area.") 

On top of the extravagant housing costs, the Bay Area faces major problems like how to best support its homeless population and provide adequate transportation options for residents, Singer says. He also sees much of what initially appealed to him about San Francisco — like local cafes and eateries — being displaced trendy restaurants with "$500 prix fixe menus." 

Good weather and FOMO

So why are some San Franciscans still choosing to stick around? 

Besides the weather, Singer says he thinks some people, especially those in tech, stay in the Bay Area because of FOMO, or fear of missing out. The thought, he says, is that if you're not in San Francisco, you won't have the chance to work for top tech companies like Uber or Pinterest or Google. 

That might be true for those just starting their careers, said Singer, who now works as a digital marketing lead at the biotech company Invitae. But for someone who has worked at a company for at least a couple years and has proven to be a "linchpin" for their teams, Singer says it's unlikely that a company wouldn't let that person work remotely. 

"The unwritten rule at any given mega-corp is if you're a talented individual contributor, they will let you work from whereever you want," Singer said. "It is not posted on their website. They will not admit that to you ever. But I've never seen that not be true at any big company." 

As for reaction to his Austin relocation, Singer tells us that none of his friends or family were all to shocked. 

"The biggest reaction is, 'Why did you stay in San Francisco so long?' from all my non-San Francisco friends," Singer said. "None of my San Francisco or Bay Area friends were surprised. They're like, 'It's totally reasonable to leave.' No one's fighting to keep me here." 

Let's block ads! (Why?)

https://www.businessinsider.com/former-googler-leaves-bay-area-buys-land-austin-texas-2019-8

2019-08-18 12:00:37Z
CAIiEFLQo2d8sNXBccy-wCKO10MqLggEKiUIACIbd3d3LmJ1c2luZXNzaW5zaWRlci5jb20vc2FpKgQICjAMMNfv5wE

Economic Calendar - Top 5 Things to Watch This Week - Investing.com

© Reuters.

Investing.com - This week investors will be watching to see how the Federal Reserve may respond to recession fears whipped up by the inversion of the Treasury yield curve.

The Fed will hold its annual gathering in Jackson Hole towards the end of the week, with Chairman Jerome Powell to address the forum on Friday. The Fed will publish the minutes of its July meeting, when it cut interest rates for the first time since the financial crisis, on Wednesday.

That, along with European Central Bank minutes, economic data and earnings will offer investors plenty to mull over. Here’s what you need to know to start your week.

1. Jackson Hole

On Thursday, Fed officials will be gathering in , Wyoming, for an annual summit that will be scrutinized by investors for any indications on the future path of monetary policy. The highlight of the forum will be a speech by Fed Chair Jerome Powell on Friday.

Markets have already priced in a quarter-point interest in September, now that the long-awaited inversion of the two-year/10-year Treasury yield curve has actually happened. However it’s not clear whether the Fed could still be tempted to move more aggressively to ward off a potential economic downturn against the backdrop of escalating trade tensions between the U.S. and China.

2. Fed meeting minutes

The U.S. central bank is to publish the of its July meeting on Wednesday, which will reveal the strength of support for its first rate cut in more than a decade. Powell described it as a “mid-cycle adjustment,” rather than the start of a major easing cycle.

The decision was not unanimous, with two FOMC members voting against a rate cut citing signs of strength in the economy, but given what has transpired in bond and stock markets since that meeting policymakers may now be considering whether ‘insurance’ rate cuts could become a full easing cycle.

3. ECB meeting minutes

The ECB will release the of its July meeting on Thursday. That meeting saw policy remain unchanged, but the ECB did adjust its forward guidance to indicate that rates could go lower, laying the groundwork for a September cut. The ECB also indicated that it could revive its quantitative easing program the coming months.

Ahead of the minutes, investors will get an update on the health of the euro zone’s manufacturing and service sectors. PMI data from Germany will be closely watched after the euro area’s largest economy contracted in the second quarter, fueling fears over the prospect of a recession.

4. Economic data

The U.S. economic data calendar is light this week with reports on and (both supported by firm consumer confidence, rising wages and falling mortgage rates) the main releases to watch.

Canada is due to release reports on , and this week ahead of its revised estimate on second quarter GDP coming up next week.

5. Retail earnings

Retail earnings will continue this week with big box retailer Target (NYSE:) and home improvement chain Home Depot (NYSE:) due to report quarterly results. Lowe’s (NYSE:), Kohls (NYSE:) and TJX (NYSE:) are among some of the other retailers also releasing figures that will offer investors insights into how consumer spending is holding up.

Last Thursday industry giant Walmart (NYSE:) boosted its earnings forecast for the rest of the year and reported an estimate-beating jump in second-quarter U.S. comparable sales. That, along with an upbeat report on helped ease some fears that the economy was heading into recession against the backdrop of trade tensions and slowing growth overseas.

--Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let's block ads! (Why?)

https://www.investing.com/news/economy/economic-calendar--top-5-things-to-watch-this-week-1957734

2019-08-18 10:48:00Z
52780356277827

Aides got Trump to delay tariffs: It could 'ruin Christmas' - Channel3000.com - WISC-TV3

Copyright 2019 CNN

Copyright 2019 CNN

Related stories

WASHINGTON, D.C. - As President Donald Trump's trade advisers were searching last week for a strategy to forestall his threatened tariffs on China, they struck upon a novel approach: appeal to his Christmas cheer.

Under pressure from retailers to prevent a move that would likely have caused prices of popular consumer goods to spike, the President's team came to him during a meeting last week with a warning. Applying new tariffs on all Chinese imports, they cautioned, could effectively "ruin Christmas," according to people familiar with the matter.

It was a tactic that worked: Trump announced the tariffs would be delayed until December 15.

It was one back-down amid a grueling trade war that Trump insists will eventually benefit Americans -- and will demonstrate his toughness on China. And while it caused markets to soar on Tuesday, the gains were erased a day later amid new fears of an impending recession.

As signals mount of a global slowdown -- spurred partly by the trade war -- Trump and his advisers are increasingly looking for ways to prevent economic anxieties from reaching Americans before next year's presidential election.

He's relying on a team that is often at odds with one another and which has undergone multiple changes over the past several months. Trump now finds himself surrounded less and less by those who guided his administration's economic policy for its first two-and-a-half years as concerns about a recession grow inside the West Wing.

Trump and his campaign are counting on a robust economy to get him reelected. The voters who approve of Trump's performance in office say the No. 1 reason why is because of the economy.

With reelection on his mind, Trump boasted about the recent performance of the stock market during a campaign rally in New Hampshire Thursday night, where he asserted that even Americans who don't like him have "no choice but to vote" for him, or else the economy will collapse.

"You have no choice but to vote for me because your 401(k), everything is going to be down the tubes," he told the crowd. "Whether you love me or hate me, you've got to vote for me."

Evolving economic team

The importance of the economy to his political future has long been an underlying theme of Trump's discussions with his team, people familiar with the conversations said, even as the make-up of that team changes over time.

His chief economic adviser Larry Kudlow, who is approaching two years on the job, is expected to leave in the coming months. His top economist Kevin Hassett exited with a promise to be "a resource ... from the outside." He is fielding complaints from aides about Commerce Secretary Wilbur Ross, according to officials.

Trump has even lashed out at one of his most loyal Cabinet secretaries, Treasury Secretary Steven Mnuchin, over stalled trade talks with China, the officials said. Mnuchin is dealing with an exodus of his own at the Treasury Department, with multiple top aides leaving in recent months.

Trump has since turned to more hardline aides such as Peter Navarro, the hardline trade and manufacturing adviser, who defend his tough moves on China and assure him there will be an economic rebound.

Trump has shown an affinity for aides with an eye toward the political implications of economic decisions rather than in-depth knowledge of economic policy, the people said. He's also grown annoyed in briefings when the discussion becomes overly technical or in the weeds.

Mnuchin, who headed the finance operation for Trump's campaign, remains the President's closest adviser on economic issues, according to people familiar with the team's dynamics, even as Trump complains about the lack of progress on trade talks which Mnuchin oversees.

That's partly due to his longevity in the administration, the people said. But Trump also views his success in the private sector as an implicit testament to his economic advice.

When he was looking for a replacement for Gary Cohn, his first National Economic Council director, he was taken by Kudlow, who was a pundit at the time defending Trump's position on television.

Trump has also praised Navarro for his sometimes-combative appearances on television defending tariffs, including this week.

A team sometimes at odds

Trump is spending the week at his Bedminster golf course, but his economic team is scattered in other locations. Navarro is in Washington while Ross is in New York. Mick Mulvaney, the former budget chief who is now acting chief of staff, joined Trump in New Jersey.

Trump's chief economic adviser, acting Council of Economic Advisers chief Tomas Philipson, has only been in the top role for a few weeks after the departure of Hassett, who frequently defended the administration's position on television. Hassett's departure was seen as creating a void for those tasked with explaining White House economic policy, a White House official said.

And Mnuchin has been working from Washington but has largely remained out of public view. He joined a telephone call between Trump and the CEOs of JPMorgan, Bank of America and Citigroup on Wednesday as markets were tumbling amid recession fears.

Instead, Navarro has been the one defending the administration's position in public throughout the week. A hardliner on China, he has frequently opposed more mainstream views of economic policy in debates inside the administration, and has clashed with Mnuchin during China trade talks.

On the airwaves, Navarro has amplified Trump's stance that market jitters are the fault of the Federal Reserve, which both Trump and Navarro believe is not cutting interest rates quickly enough.

That's not a view universally held in the West Wing, where many economic aides privately acknowledge the ongoing trade wars are more to blame for current economic conditions than anything else. But in conversations, most White House officials still cite the Fed as a contributing factor, knowing it's the view held by the President.

The White House is planning on having Kudlow, the National Economic Council director, appear on some Sunday morning shows to further explain the administration position. And Vice President Mike Pence will deliver remarks at the Detroit Economic Club next week spelling out the administration's economic positions.

A senior administration official said Trump has been in regular contact with members of his economic team -- including Kudlow, Mnuchin and Trade Representative Robert Lighthizer -- from his working vacation in New Jersey this week.

Recession fears?

While some officials described Trump as jolted by the fresh recession fears that rocked the market on Wednesday, others said he did not appear deeply concerned that a downturn could materialize in the next two years.

Instead, he's been more focused on what such an economic event -- or the appearance that one is imminent -- may have on his political prospects. He's expressed concern that a worsening trade standoff could harm the economy and ding his chances for reelection.

Though Trump's frustration at the markets has been directed mainly at the Federal Reserve, people familiar with the matter say he's also vented that the team tasked with negotiating a trade deal with China has so far failed to strike an agreement.

One such meeting occurred last week as the new tariffs that Trump threatened to levy on China were causing uproar among retailers. In the meetings, Trump's advisers warned him that CEOs were prepared to vocally push back on the tariffs, which had been due to take effect in September and would have affected popular Christmas gifts such as cell phones and electronics.

The advisers appealed to Trump's affinity for the Christmas season, according to the people familiar. Trump has boasted to rally crowds he saved the festive season from a politically correct "war on Christmas."

Trump tasked his team with finding a way to avoid a holiday shopping backlash, and the advisers recommended delaying the duties until December 15, when the products on store shelves for the Christmas shopping season would have already shipped.

The decision to delay new tariffs on China came without any concessions from Beijing.

Speaking on Fox News on Wednesday, Navarro called the tariff back-off Trump's "Christmas present to the nation."

In the meetings, Trump also expressed hope the move would jolt US-China trade talks, which have proceeded haltingly since his meeting with Xi in June, much to Trump's frustration.

But that doesn't appear to have happened. On Thursday, China threatened to retaliate if the US issues new tariffs on $300 billion of Chinese-made products. A statement from the Ministry of Finance didn't mention the delay.

CNN's Pamela Brown contributed to this report.

Let's block ads! (Why?)

https://www.channel3000.com/news/politics/national-politics/aides-got-trump-to-delay-tariffs-it-could-ruin-christmas/1110407471

2019-08-17 14:59:00Z
52780356107346