Gini Olom

Kamis, 07 November 2019

Sterling falls after Bank of England split on interest rate cut - CNBC

Bank of England

Justin Tallis | AFP | Getty Images

The Bank of England (BOE) held interest rates steady on Thursday, opting not to adjust borrowing costs in the world's fifth-largest economy ahead of a snap election.

With 35 days to go before Britons head to the ballot box, the BOE's nine-member Monetary Policy Committee (MPC), led by Mark Carney, voted to hold interest rates at 0.75%.

Seven policymakers, including Carney, voted in favor of leaving interest rates unchanged, but Jonathan Haskel and Michael Saunders surprised financial markets by voting for a quarter-point rate cut.

Sterling traded at $1.2808 at around 1:30 p.m. London time, falling over 0.3%.

"With the risk of a no-deal Brexit falling recently, we expect the uncertainty facing households and businesses to fall. We also expect global growth to recover gradually," the BOE said in its Monetary Policy Report.

The central bank suggested these developments would help growth in the U.K., but conceded if that does not happen then it "may need to lower interest rates to support U.K. growth and ensure that we return inflation to our 2% target sustainably."

Saunders and Haskel said their vote for an interest rate cut was driven by reduced job vacancies and downside risks from the global economy and Brexit.

Other members of the MPC suggested a willingness to cut rates over the coming months, if necessary, but did not vote in favor of lower borrowing costs in November because the U.K. economy had performed largely in line with expectations from three months ago.

"This is a clear shift in the Bank's policy balance from the earlier neutral-hawkish position, which will likely set the tone for the Bank's signaling, and likely growing divergence on the MPC, following Governor Carney's departure in early 2020," Lena Komileva, chief economist at G+Economics, said in a research note.

Brexit uncertainty

Much has changed in British politics since the MPC last voted to leave interest rates unchanged in mid-September.

Prime Minister Boris Johnson ultimately failed to rush his Brexit deal through Parliament, prompting the Conservative Party leader to request a Brexit extension and call a snap vote for December 12.

The EU agreed to push back the Brexit deadline until the end of January, with an earlier departure possible should U.K. lawmakers ratify their divorce deal.

Economists believe the BOE will cut interest rates at some point next year, amid a slowing economy and Brexit uncertainty.

Ahead of the central bank's split vote, market expectations for a quarter-point rate cut by the end of 2020 stood at 55%, according to the CME BOE Watch Tool. Shortly after Thursday's surprise announcement, expectations jumped up to 80%.

A long-running U.S.-China trade war and a global economic downturn have prompted the Federal Reserve and European Central Bank to cut interest rates in recent months, but, so far, the BOE has resisted following suit.

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2019-11-07 12:45:29Z
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Facing shorter holiday season, U.S. retailers rev up faster delivery, early deals - Reuters

(Reuters) - U.S. retailers are rushing in with faster-than-ever delivery deals and earlier Christmas promotions in hopes of easing the impact of this year’s shorter holiday selling season, a period that can be make-or-break for retailers.

FILE PHOTO: A shopper wears a Santa Claus hat at the King of Prussia Mall, United States' largest retail shopping space, in King of Prussia, Pennsylvania, U.S., December 8, 2018. REUTERS/Mark Makela

Thanksgiving, the traditional kick-off of the U.S. holiday shopping period, falls on Nov. 28 this year, a week later than last year’s Nov. 22, leaving retailers with six fewer days to drive sales between Thanksgiving and Christmas day.

The last shortened shopping season was in 2013 - a year when retail chains and delivery companies scrambled to get packages to shoppers in time for Christmas.

Retailers’ urgency to avoid a repeat of 2013 is on full display as is the rush to compete with Amazon, which began rolling out free one-day shipping on over 10 million products in June.

The holiday season spanning November and December can account for as much as 40 percent of annual sales.

“It’s a very compressed holiday season...every day counts,” Target Corp’s chief executive, Brian Cornell, said in October.

For the first time, Target is offering its “Drive Up” service, which lets shoppers order on the Target app and have their items brought to their car, in all 50 states. The company said most orders will be ready within an hour and brought out in less than two minutes upon arrival.

That will be in addition to free shipping with no minimum purchase, order pickup on online purchases and same-day delivery services.

Similarly, Best Buy has promised free next-day delivery on thousands of items. And Walmart Inc is, for the first time, offering free next-day delivery on orders over $35 without a membership fee.

“A shorter holiday season puts more importance on each shopping day,” said Steve Sadove, senior adviser for Mastercard and a former CEO and chairman of department store operator Saks Inc. Sadove said the sales outlook for the season remains positive despite the fewer days between Thanksgiving and Christmas.

Mastercard, which measures consumer spending across all payment types including cash and checks, expects U.S. retail sales, excluding automobiles, to grow 3.1% from a year ago between Nov. 1 and Dec. 24.

The holiday deals deluge, which traditionally has started on the day after Thanksgiving, known as Black Friday, has been starting earlier and earlier in November each year. This year such promotions began in mid-October due to the shorter season. For example, Walmart began offering holiday deals on Oct. 25.

Steep discounts on merchandise, typically visible just ahead of or immediately after Thanksgiving, are being offered by many companies. Online home retailer Wayfair is offering up to 70 percent off on top-selling items. Others like Amazon, Target and Kohls have already begun offering Black Friday deals.

“Retailers will need to plant a sense of urgency early-on, then reinforce it after Thanksgiving, when the rubber meets the road,” said Carol Spieckerman, president at consultancy Spieckerman Retail.

To be sure, the deals and shipping offers do not necessarily mean shoppers will buy more, retail consultants said. The tariffs imposed by President Donald Trump on Chinese imports, which have raised prices of many items, are weighing on sentiment, they said.

Seventy-nine percent of Americans are worried that tariffs will make their holiday shopping more expensive, according to the National Retail Federation, a leading industry trade body.

The tariffs on Chinese-made clothes, shoes and some electronics went into effect on Sept. 1. Another round of 15% U.S. tariffs, on consumer goods, is expected on Dec. 15.

A senior official of the Trump administration said on Wednesday that a meeting between Trump and Chinese President Xi Jinping to sign a long-awaited interim trade deal could be delayed until December.

Reporting by Aishwarya Venugopal in Bengaluru and Nandita Bose in Washington; Editing by Leslie Adler

Our Standards:The Thomson Reuters Trust Principles.

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2019-11-07 12:08:00Z
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Two BOE Members Unexpectedly Vote for Rate Cut as Outlook Sours - Bloomberg

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https://www.bloomberg.com/news/articles/2019-11-07/two-boe-members-unexpectedly-vote-for-rate-cut-as-outlook-sours

2019-11-07 12:00:00Z
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EU cuts growth forecasts for the euro zone on global trade tensions - CNBC

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The EU slashed its growth forecasts for the euro zone Thursday, saying global trade tensions are set to weigh on the region and limit economic expansion.

The warning from the EU's executive arm, the European Commission, comes at time when the European Central Bank (ECB) has started a new round of stimulus to prop up fragile growth.

"The fact that growth is no longer expected to rebound meaningfully in the next two years is a major shift compared to previous forecasts and is based on the assessment that many features of the global slowdown will be persistent," the European Commission said Thursday in its Autumn Economic Forecasts report.

"Most importantly, the surge in trade tensions and record-high uncertainty about trade policies is likely to have inflicted lasting damage to world trade," the Commission added.

Uncertainties surrounding trade include: The future relationship between the U.K. and the EU as both need to establish new trading rules post-Brexit; new consumer preferences in the car industry and volatility in U.S.-China trade.

As a result, the Commission slashed its economic forecasts for the euro zone in 2019 and 2020. The 19-member region is now set to grow at a pace of 1.1% this year and 1.2% in 2020. In its previous forecasts, out in May, the European Commission had estimated a 1.2% growth rate for the euro zone in 2019 and 1.5% for 2020.

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2019-11-07 10:00:41Z
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More than 2 million pounds of chicken products recalled in eight states - CNN

Arkansas-based Simmons Prepared Foods, Inc. recalled the items produced from October 21 through November 4 this year. They are 2,071,397 pounds of poultry products, including ready to cook chicken whole legs, boneless skinless chicken, halal chicken leg quarters and chicken tenderloins, the US Department of Agriculture's Food Safety and Inspection Service said Wednesday.

The products subject to recall have an establishment number "P-1949," "P- 486" or "P-5837" inside the USDA mark of inspection, and were shipped to Alabama, Arizona, Arkansas, California, Georgia, Minnesota, Oklahoma and Pennsylvania.

Those who've purchased the products are urged to throw them away or return them to the store.

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2019-11-07 11:50:00Z
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Alphabet investigates handling of harassment claims - BBC News

Google's parent company Alphabet is investigating how executives handled sexual harassment and misconduct charges.

It follows shareholder lawsuits filed earlier this year over the way Google allegedly dealt with misconduct claims.

The firm's board has formed a "special committee" to consider shareholder claims over past workplace misconduct.

Alphabet is also working with a law firm on the probe, which it launched earlier this year.

The way Google handled the incidents prompted demonstrations by staff and led to thousands walking out of their offices in co-ordinated protests in late 2018.

At that time, Google boss Sundar Pichai apologised for the way it had acted in the past over allegations of inappropriate behaviour and promised improvements.

"In early 2019, Alphabet's board of directors formed a special litigation committee to consider claims made by shareholders in various lawsuits relating to past workplace conduct," a spokesperson for the company said.

In January, it emerged that Alphabet was facing legal action over the way it allegedly handled sexual misconduct claims against two senior managers.

Two lawsuits have been filed by long-term shareholders which accuse the company's board of being involved in attempts to cover up the claims.

Both legal claims want Alphabet to do a better job of uncovering and responding to misconduct.

The legal action is believed to have been prompted by the way that Google handled misconduct allegations made against former Android boss Andy Rubin and former search head Amit Singhal.

Both men are believed to have received large payoffs after being investigated over the claims. Neither now works for Google.

Mr Rubin and Mr Singhal deny the allegations.

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2019-11-07 07:58:29Z
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Rabu, 06 November 2019

BC Ferries awards contract for 4 more electric hybrid vessels to Dutch company - Global News

The first of BC Ferries’ new battery electric hybrid vessels won’t be in service until early next year, but the company has already ordered more.

The ferry corporation says it has signed a $200 million contract extension with Damen Shipyards Group of the Netherlands which will see it build an additional four Island Class vessels.

Most of B.C.’s recent ferry acquisitions have been built overseas in recent years, including three C-Class vessels built in Germany for more than $500 million.

Premier John Horgan said last year that he hoped new ferries would be built in B.C., and B.C. shipbuilders shared their dismay at the news the new batch would not be produced locally.

“Those are great, good mortgage paying family raising jobs,” said Phil Venoit, business manager with the ship building union IBEW Local 230.

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The ferry corporation said it put the contract out to a competitive tender in 2018, but received no local bids.

“Eighteen shipyards responded. We issued the proposal to Canadian yards and international yards, and no Canadian yards bid,” he said.

But George Macpherson, Shipyard General Workers Federation president said the province needs to try harder.

“Claire Trevena, the transpiration minister, has a mandate to ensure that the bidding process is fair for the industry and its clearly not happening.”

‘Green’ fleet

BC Ferries is touting the new class of ferries as a significant environmental upgrade.

It says when charging technology improves, the boats will be able to operate on 100 per cent electric power. For the interim, they are powered by a hybrid system that uses low-sulfur diesel fuel and reduces emissions.

Other green features include LED lighting and heat recovery systems.

0:33John Horgan says government is aiming to build new ferries in British Columbia

John Horgan says government is aiming to build new ferries in British Columbia

BC Ferries says the new vessels will also significantly cut down on underwater noise, due to a new twin propeller design and machinery which has been isolated to reduce vibrations.

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Limiting underwater noise has become a key priority for B.C.’s marine traffic, amid growing concern about the endangered southern resident killer whale population.

The vessels can carry 47 vehicles and between 300 and 450 passengers and crew, depending on configuration.

The first two Island Class vessels, which were ordered in 2017, have completed sea trials and will be ready for delivery by January 2020, according to BC Ferries.

They will be tasked to the Powell River – Texada Island route and the Port McNeill – Alert Bay – Sointula Island route by mid-2020, the company said.

The newly-ordered ferries will be ready by 2022, and will be deployed in pairs to routes currently served by a single, larger vessel.

BC Ferries says using the smaller vessels in pairs on the Nanaimo Harbour – Gabriola route and the Campbell River – Quadra Island route will increase frequency of service and reduce congestion.

The company says the new vessels will be serviced in Victoria via an agreement between Damen Shipyards and Point Hope Shipyards for technical and warranty support.

Before 2010 olympics, three C class vessels built in Germany worth $500 M.

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Capt. Jamie Marshall

“Fully electric capable, they’ll be initially operated as hybrid vessels, so diesel electric until the shore infrastructure matures to go fully electric.”

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November 07, 2019 at 04:15AM