Gold prices holding steady following muted U.S. PCE inflation data - Kitco News

(Kitco News) - Although off its highs, the gold market is still holding significant gains for the month even after data pointed to muted inflation pressures in July.

Friday, the Department of Commerce said that its Core Personal Consumption Expenditures (PCE) Index, increased in last month 0.2%, missing expectations. Economists were forecasting a 0.3% rise. Annually, core inflation, which is the Fed's preferred inflation measure increased 1.6%, unchanged from June's

Gold prices have seen some expected selling pressure after prices hit a fresh six-year high earlier in the week. The latest economic data is having little impact on prices, in initial reaction; December gold futures last traded at $1,536.70 an ounce, relatively unchanged on the day.

However, the weak inflation data is not a major negative for the gold market. Many economists have note that the weak inflation data will continue to support looser monetary policy action from the Federal Reserve.

Economists also note that the data should help to relieve some recession fears as consumer activity remains strong. The report noted that personal spending increased 0.6% in July, up from June’s 0.3% increase. Economists were forecasting a 0.3% increase.

Meanwhile personal savings grew less than expected, rising 0.1%, compared to June’s 0.4% rise. Economists were expecting to see a 0.3% increase.

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https://www.kitco.com/news/2019-08-30/Gold-prices-holding-steady-following-muted-U-S-PCE-inflation-data.html

2019-08-30 12:33:00Z
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GM, Lyft, Waymo want to be allowed to remove driver controls on autonomous cars - CNBC

Chrysler Pacifica hybrid minivan that's party of Waymo's fleet

Waymo

General Motors and Alphabet's Waymo are among the companies encouraging federal safety regulators to swiftly, yet safely, update laws to better accommodate the testing and approval of fully autonomous vehicles on U.S. public roadways, even those without driver controls.

The companies, considered by many to be the leaders in autonomous vehicles, were among roughly 90 organizations and individuals to submit public comments on a proposed regulation on changing rules for self-driving vehicles to the National Highway Traffic Safety Administration and Federal Motor Carrier Safety Administration.

Lyft, Volvo, Intel and Mercedes-Benz, New York City and nonprofit consumer advocacy organizations like the Center for Auto Safety all weighed in on new safety standards for self-driving vehicles before the public comment period closed Wednesday.

Notably absent from the comments was Tesla, which has been very public about their aspirations for testing and deploying autonomous vehicles. Tesla did not immediately respond for comment.

The comments will be taken into consideration as federal regulators rewrite the rules, NHTSA said in an emailed statement.

While many believe autonomous vehicles can save lives, some have been skeptical about allowing the vehicles on public roads — particularly following a fatal crash involving a self-driving Uber vehicle in March 2018 in Arizona.

Removing manual controls

Regulators are considering allowing vehicles without manual controls, including steering wheels and pedals, to operate on U.S. roadways. Current laws require such equipment, and companies have to request exemptions to launch such vehicles.

GM, which last year along with its Cruise autonomous vehicle subsidiary petitioned for such exemptions, and Lyft support creating separate requirements that meet the "intent" of the safety standards, not the physical equipment.

"GM/Cruise supports NHTSA establishing new definitions that apply only to ADS-DVs [autonomous vehicles] without manual controls," GM said. "It would allow NHTSA to clearly delineate, where necessary, the requirements that apply to ADS-DV versus those that apply to traditional vehicles."

Lyft, in its comments, agreed that a "separate vehicle classification" for autonomous vehicles with their own regulations would "remove regulatory barriers and modify [federal motor vehicle safety standards] that reference a human driver and/or assume some manual control element within the test procedure."

The Alliance of Automobile Manufacturers, which encompasses 12 automakers that represent about 70 percent of all car and light truck sales in the U.S., encouraged NHTSA to use "a parallel and phased approach" that focuses on vehicles with advanced driver-assist systems as well as autonomous vehicles with and without manual controls.

Safety concerns

While many companies supported changes, several safety advocates and consumer watchdog groups cautioned NHTSA on hastily changing regulations.

Consumer Reports, while acknowledging the potential long-term safety benefit of autonomous vehicles, encouraged NHTSA to focus resources on more near-term benefits.

"In short: for NHTSA to save lives and prevent injuries, there are more important subjects the agency should be focusing on than 'removing regulatory barriers,' especially given the robust pace of industry innovation in many areas today, " Consumer Reports said.

The Center for Auto Safety, a Washington-based consumer advocacy organization, said it remains "skeptical" about companies testing vehicles without manual controls, citing "there is no demonstrable evidence" that the vehicles "can safely operate on (and off) America's roads."

—CNBC's contributed to this report.

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https://www.cnbc.com/2019/08/30/gm-lyft-urge-regulators-to-remove-driver-controls-on-autonomous-cars.html

2019-08-30 11:54:48Z
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Altria: JUUL Of Denial - Seeking Alpha

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1. Altria: JUUL Of Denial  Seeking Alpha
2. Juul CEO says 'don't vape,' long-term effects are unknown  INSIDER
3. Juul Labs announces ID verification system to curb underage e-cigarette use  CBS This Morning
4. Mom of teen with vaping addiction warns parents about the dangers of e-cigarettes: ‘It’s stealth by design’  Yahoo Lifestyle
5. FTC Investigates S.F. Based E-Cigarette Maker Juul Over Ads Targeting Teens  KPIX CBS SF Bay Area
6. View full coverage on Google News

https://seekingalpha.com/article/4288858-altria-juul-denial

2019-08-30 10:53:00Z
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Elon Musk visits Gigafactory 3 site, receives support from Shanghai Party secretary - Teslarati

By Simon Alvarez

Posted on August 30, 2019

Recent images from China revealed that Tesla CEO Elon Musk had a busy day following his appearance at the opening segments of the 2019 World Artificial Intelligence Conference in Shanghai. Following his free-wheeling AI debate with Alibaba founder Jack Ma, Musk visited the Gigafactory 3 site in the Lingang industrial area, before meeting with Shanghai Party Secretary Li Qiang for a conversation about Tesla’s initiatives in China. 

Elon Musk’s visit to the Gigafactory 3 site appears to have been a welcome change of pace for the upcoming facility’s workers, who appeared to appreciate the presence of the Tesla CEO. The details of Musk’s visit to the Shanghai-based electric car production facility have not been shared by local news outlets yet, but social media reports from Shanghai stated that the Tesla CEO was extremely happy about the progress of Gigafactory 3’s construction. 

After his visit to the Gigafactory 3 complex, Musk met with Li Qiang, the secretary of the Shanghai Municipal Party Committee. During their conversation, the government official highlighted that Tesla and Gigafactory 3 are welcome additions to Shanghai, as they will bring new products and innovations to the city. Li also mentioned that Shanghai wants to build a highland for AI development in the future. 

Musk, for his part, proved equally optimistic and thankful for China’s support of Tesla. While speaking at the 2019 WAIC, Musk remarked that he is simply stunned about the quickness and efficiency of Gigafactory 3’s buildout. “Tesla’s China team has done an amazing job and I’m astounded that so much progress has been made for the Shanghai Gigafactory. It’s a good story for the world to see how much progress you can make in China. I really think China’s future looks very impressive,” he said. 

Following his busy Thursday, Musk appeared to have flown to China’s capital on Friday, as evidenced by pictures depicting the Tesla CEO having lunch at a famous Baozi (filled bun) restaurant in Beijing. Interestingly, the restaurant is very close to the Beijing office of the National Development and Reform Commission (发改委), which handles the country’s comprehensive economic projects, among others. 

Apart from Elon Musk’s appearance at the 2019 World AI Conference and his visit to the Gigafactory 3 complex, the Tesla CEO is also expected to launch The Boring Company’s China unit on this particular China trip. More details about this initiative will likely be shared from local news agencies, or in social media platforms, in the coming days. 

Elon Musk visits Gigafactory 3 site, receives support from Shanghai Party secretary

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2019-08-30 10:00:23Z
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ECB hawks are trying to downplay the chances of a huge stimulus package in September - CNBC

FMario Draghi (C), president of the European Central Bank (ECB)speaks flanked by Luis de Guindos, vice president of the European Central Bank (ECB), and Christine Graeff, director general for communications to the media following a meeting of the ECB Governing Council at ECB headquarters of March 7, 2019 in Frankfurt, Germany.

Thomas Lohnes | Getty Images

Two top officials have tried to temper market expectations of an immediate quantitative easing (QE) package being launched by the European Central Bank (ECB).

Earlier in the summer, ECB President Mario Draghi said he was looking at further options to prop up the 19-member euro zone economy, outlining that one of the possibilities included a new program of asset purchases to stimulate lending and boost inflation.

Investors cheered his dovish comments with ECB members like François Villeroy de Galhau highlighting that a major bond-buying program, also known as QE, could come in the proceeding months if needed.

But just as investors gear up for the ECB's next meeting on September 12, two notably hawkish members of the euro zone's central bank have decided to inject some reality back into the debate.

"In my opinion, based on the current data, it is much too early for a huge package," executive board member Sabine Lautenschlaeger said in an interview with Market News this week which was published on the ECB's website Friday.

"I am still convinced that the Asset Purchase Programme (APP) is the ultima ratio, and it should only be used if you have a risk of deflation; and the risk of deflation is nowhere to be seen now."

Fellow ECB member and Dutch central bank chief Klaas Knot added his own words of caution. "If deflation risks come back on the agenda then I think the asset-purchase programme is the appropriate instrument to be activated, but there is no need for it in my reading of the inflation outlook right now," he told Bloomberg Thursday.

But there's only been a muted market response since these comments with European stocks posting gains on both Thursday and Friday. Analysts at Rabobank put this down to traders already being aware that there wasn't unanimity among the ECB's board members on QE.

They also highlighted in a research note that the reason the hawks "are stating their objections so vociferously is that they know that it is very likely that the APP will imminently be re-started."

If implemented, it would be the second time in its history that the central bank has announced a massive program to directly inject money into the euro zone economy.

Last week, Erik Nielsen, group chief economist at UniCredit, predicted QE would be launched in September and could between 300 billion and 400 billion euros ($333.07 and $444.10 billion) over a nine-month period.

The euro area is still struggling to deal with its low inflation levels and to grow at a significant rate. According to the central bank's latest forecasts, out in June, headline inflation is set to reach 1.3% in 2019 — the ECB's target is "below but close to 2%." In terms of growth, the central bank is expecting growth to reach 1.2% this year — having grown at a rate of 1.8% in 2018.

Silvia Dall'Angelo, senior economist at Hermes Investment Management, told CNBC via email last week that he wouldn't rule out an open-ended approach by the ECB.

"An ECB official recently made the case for a more forceful move, a bigger rather than smaller programme is likely, say 45 billion euros per month for a year," he said.

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2019-08-30 09:15:54Z
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Five Years Ago Saturday, a Turning Point for Hong Kong and China - The New York Times

HONG KONG — In many places around the world, a single date marks seismic events considered turning points in recent history, like the Sept. 11 attacks in the United States or the Nov. 9 fall of the Berlin Wall for Europe. For post-colonial Hong Kong, the turning point fell on Aug. 31, 2014.

That was when a top Chinese government body announced a plan for limited democracy in Hong Kong. Beijing’s decision fell considerably short of what democracy protesters were demanding that summer, and it set off a two-month occupation of several Hong Kong neighborhoods that came to be known as the Umbrella Movement.

This year, demonstrators seized on that day — known simply as “the 8/31” — for what they hoped would be a huge march this Saturday, although an organized rally now seems unlikely.

The Hong Kong authorities have declined to grant the protesters a permit, raising the possibility of a repeat of recent clashes should the demonstration be held. The authorities rejected an appeal on Friday, and march organizers called off the demonstration after failing to win approval, although people are likely to protest in other ways.

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Democracy protesters in Hong Kong in October 2014 during the occupation that came to be known as the Umbrella Movement.CreditAdam Ferguson for The New York Times

What was the decision?

The Standing Committee of China’s rubber-stamp legislature, the National People’s Congress, approved a law five years ago on Saturday that would have allowed all adults who are permanent residents of Hong Kong to vote on who would be the next chief executive of the semiautonomous Chinese territory. But it came with a catch: Beijing would have tight control over who could run.

A 1,200-member electoral committee stacked with Beijing loyalists currently chooses the chief executive. The Aug. 31 decision would let that committee only choose the candidates, and then let the general public vote on those candidates. But opponents felt that meant Beijing would still be choosing their leader. And Beijing did indeed say that whoever won the vote of the general public would still have to be appointed to the job of chief executive by China’s national government.

The Standing Committee’s pronouncement did not become Hong Kong law because pro-democracy lawmakers in the Hong Kong legislature blocked approval of it in 2015. So the same 1,200-member election committee continues to choose the chief executive, with the system favoring pro-Beijing candidates. The committee selected Carrie Lam, the incumbent, in 2017, and she won with 777 votes of the 1,163 votes actually cast.

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Protesters in Hong Kong installed an “Umbrella Man” sculpture during a demonstration in October 2014.CreditAdam Ferguson for The New York Times

Why are the protesters upset about it?

Most democracy advocates in Hong Kong have long rejected the decision as worse than nothing at all. “The decision of Aug. 31 is totally unacceptable to the Hong Kong people,” said Bonnie Leung, the vice convener of one of the main protest groups, the Civil Human Rights Front, which had been organizing the Saturday demonstration. “The chief executive would have millions of votes, not a handful, but they would still be handpicked by Beijing.”

Mrs. Lam, now the chief executive of Hong Kong and previously the territory’s top civil servant, tried to find a compromise during the Umbrella Movement. Her compromise would have changed the composition of the nomination committee, notably by reducing the large number of seats reserved for farmers and fishermen. Farming and fishing now represent a tiny share of Hong Kong’s population and economy these days, but these are staunchly pro-Beijng sectors.

But Mrs. Lam’s compromise still would have left the nomination committee in charge of who could appear on the ballot. Democracy advocates rejected her suggestions.

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A scene in October 2014 from the Umbrella Movement protest. Most democracy advocates in Hong Kong have long rejected the 2014 Beijing decision as worse than nothing at all.CreditAdam Ferguson for The New York Times

Who likes the Aug. 31 decision?

A few centrists in Hong Kong and Western political scientists have suggested that adoption of the Aug. 31 decision five years ago might have helped the democratic cause and might still be a good option for the territory. They argue that even if two or three Beijing allies appeared on a ballot for a vote by all of the people of Hong Kong, those candidates would become less pro-Beijing during the campaign. They might compete with each other in promising more democracy, so as to win the most votes from the general public.

“If they want to win a popular election, they would have to adopt policies closer to the political center,” said David Zweig, a longtime political scientist at the Hong Kong University of Science and Technology.

The Aug. 31 decision gives Beijing final say on who becomes chief executive. After the general election, Beijing would decide whether to appoint the winner of the general election to become chief executive. If a candidate became too critical of Beijing during an election campaign, or promised too much, that candidate might not be appointed, said Lau Siu-kai, vice chairman of the Chinese Association of Hong Kong and Macau Studies, an elite, semiofficial advisory body set up by Beijing.

“Beijing will not allow any person who seems to place his accountability to the Hong Kong people above his accountability to Beijing,” Mr. Lau said.

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Protesters’ umbrellas outside the government complex in September 2014. Hong Kong has changed since then, with protesters now more willing to resort to violence.CreditLam Yik Fei for The New York Times

Does Beijing still back the decision?

The decision five years ago was a compromise in Beijing between moderates willing to tolerate some democracy in Hong Kong and hard-liners less willing to allow it. The compromise was aimed at going far enough in meeting Hong Kong democracy demands to head off a threatened occupation of the streets that autumn — a goal the compromise completely failed to achieve.

Hong Kong has changed since then, with protesters more willing to resort to violence. But Beijing has also changed since then. President Xi Jinping had been in office for less than two years at the time of the Standing Committee’s decision, and was still consolidating power.

In the years since, he has repealed a constitutional limit of two terms as president, allowing him to remain in office indefinitely. He has replaced almost all top military and security officials with people loyal to him. Human rights lawyers have been sentenced to long jail terms and much stricter controls have been placed on internet use in mainland China.

Democracy advocates still hope Beijing will make them a better offer. “I hope Beijing will understand if you make a concession, it is not a sign of weakness but a sign of a great power,” said Emily Lau, a pro-democracy lawmaker.

Some Beijing hard-liners on Hong Kong policy, however, have begun to question whether any concession to democracy advocates, like allowing general elections with Beijing controlling who is a candidate, is even needed anymore.

Lau Siu-kai said that because the Standing Committee has never repealed the decision, it remains on the books and in theory available to Hong Kong.

“It is still available, because it is the national law,” he said, while adding that, “I don’t see this as a possibility at all, that 8/31 would be accepted by the democrats.”

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2019-08-30 06:31:00Z
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Best Buy shares fall after second-quarter sales miss and looming tariffs on core products weigh on stock - CNBC

Best Buy shares fell 9% after its second-quarter revenue and same-store sales growth missed analysts' expectations and upcoming tariffs on the company's core products weigh on the stock.

Investors were pessimistic Thursday morning, focusing on both the sales miss and a narrower estimate for same-store sales, driven by disappointing sales in Canada. However, the company did report earnings that beat expectations by 9 cents and raised its earnings forecast for the fiscal year.

Best Buy's CEO Corie Barry also said several of its core products including televisions, smart watches, and headphones will be hit with a 15% tariff on Sept. 1. The announcement of a delay in tariffs on Chinese goods on some items will affect computing, mobile phones, and gaming consoles, which will see the 15% duty on Dec. 15.

But the company still said that although it has tried to factor the impact of tariffs into its guidance, there is still uncertainty ahead.

"There is a bit of art and a bit of science to estimating this and we don't exactly have a precedent for the quantity of moving pieces that we have in place right now," Corie said in a call with analysts. "There's a few things we are trying to take into account here," including exactly which goods are on the list, when they will be implemented, and what rates.

Here's how the company did, compared with what Wall Street was expecting, according to Refinitiv consensus estimates:

• Adjusted earnings per share: $1.08, vs. 99 cents estimated
• Revenue: $9.54 billion, vs. $9.56 billion estimated
• Same-store sales: up 1.6%, vs. 2.1% increase estimated

"For the second quarter, we are reporting comparable sales growth of 1.6% on top of a very strong 6.2% last year," said Barry. "We also delivered improved profitability driven by gross profit rate expansion and continued disciplined expense management, demonstrating the culture we have built around driving cost reductions and efficiencies to help fund investments."

Sales at Best Buy stores open for at least 12 months grew 1.6%, lower than analyst expectations of a 2.1% increase.

In the quarter ended Aug. 3, Best Buy reported net income of $238 million, or 89 cents a share, compared with $244 million, or 86 cents a share, a year earlier. Excluding restructuring costs and other one-time items, Best Buy earned $1.08 a share, topping analysts' estimates from Refinitiv.

Revenue rose to $9.54 billion from $9.38 billion a year ago, but was slightly below estimates of $9.56 billion.

Best Buy raised its earnings forecast for the fiscal year to a range of $5.60 to $5.75 per share from a previous estimate of between $5.45 to $5.60 per share. Both numbers are after excluding one-time items.

However, sales at stores open at least a year are expected to rise 0.7% to 1.7% this year. Previously, it estimated 0.5% to 2.5% same-store sales growth. Analysts were anticipating a 2% increase.

Domestic same-store sales grew 1.9% and revenue increased 2.1% to $8.82 billion. The company saw a domestic online revenue rise 17.3% to $1.42 billion because of higher average order values and increased traffic. Its domestic online revenue represented 16.1% of sales compared with 14% last year.

Internationally, same-store sales fell 1.9%, while revenue dropped 3.4% to $715 million. The company said the decline was driven primarily by sales in Canada.

Best Buy said repurchased $230 million in stock during the quarter. Prior to Thursday's selloff, Best Buy shares were up 30% since the start of the year, bringing its market cap to about $18.4 billion.

"I think that the challenges with Best Buy are many of the same challenges that are overall facing the retail industry. There are certainly the issues related to tariffs, but you can't overlook all of the other challenges the company has as well," said Sucharita Kodali, an analyst at Forrester on CNBC's "Squawk Box " Thursday.

She said one of the pressures the company is facing is commodification of their core products, including electronics.

"When you see the strength in numbers from retailers like Walmart and Target, their consumer electronic sections are bolstering that and that is absolutely going to naturally adversely affect Best Buy. You have the continued growth of Amazon, where electronics are a significant part of what consumers buy on that site. "

The company also said its same-store sales growth was fueled by strength in appliances and headphones, while gaming and home theater sales declined.

"What Best Buy has leaned into and what their strength was in this quarter was in categories like appliances, which are not well-suited to the e-commerce landscape, you have services, you have accessories which are high-margin things like headphones so those are definitely things that have helped and supported Best Buy," said Kodali.

"But the question is how much more can they lean into things like services and installations, and is there more headroom there? I would argue that those are sectors that can be somewhat challenged," she said.

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https://www.cnbc.com/2019/08/29/best-buy-reports-fiscal-q2-2019-earnings.html

2019-08-29 12:20:41Z
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