26Sep2018 Market Close: Fed Raises Interest Rates 25 Basis Points, Markets Have Sharp Sell-off, DOW Closes Down 107 Points, Expect Several More Negative Sessions

GM’s Cadillac to leave Big Apple, return to Michigan roots

General Motors Co said on Wednesday that Cadillac will switch its headquarters back to Michigan from New York after just three years to be closer to engineers and design teams as the luxury brand plans to roll out two new vehicles annually through 2020.

Merck’s Frazier to remain CEO of the U.S. drugmaker beyond 2019

Merck & Co Inc Chief Executive Officer Kenneth Frazier will remain in the role beyond 2019, the drugmaker said on Wednesday, after it scrapped a policy requiring its CEOs to retire at the age of 65.

Fed raises rates, sees at least three more years of economic growth

The Federal Reserve raised interest rates on Wednesday, as expected, and forecast three more years of economic growth as the U.S. central bank left its policy for steady rate rises in place.

Fed lifts U.S. rates by quarter percentage point

The U.S. Federal Reserve raised interest rates on Wednesday, as expected, and left its monetary policy outlook for the coming years largely unchanged amid steady economic growth and a strong job market.

Papa John’s asks potential acquirers to submit offers: sources

Papa John’s International Inc , the world’s third-largest pizza delivery company, has reached out to potential acquirers to ask them to submit offers, people familiar with the matter said on Wednesday.

Tech companies back U.S. privacy law if it preempts California’s

Major technology companies and internet service providers told a U.S. Senate panel on Wednesday they support federal legislation to protect data privacy but want Congress to preempt tough new rules adopted by California.

Wall Street adds to gains, dollar higher, after Fed rate hike

Wall Street extended gains on Wednesday, while the dollar dipped but then recovered, after the U.S. Federal Reserve raised interest rates, as expected, and flagged the end of “accommodative” monetary policy.

Nike shares dip after forecast disappoints

Nike shares fell as much as 3 percent on Wednesday after the company disappointed Wall Street by not raising its full-year forecast following a sales boost from its Colin Kaepernick ad campaign.

Uber to pay $148 million to settle data breach cover-up with U.S. states

Uber Technologies Inc [UBER.UL] will pay $148 million for failing to disclose a massive data breach in 2016, marking a costly resolution to one of the biggest embarrassments and legal tangles the ride-hailing company has suffered.

“Un-Accommodative” Powell Pummels Stocks As Yield Curve Crumbles

Johnny 5 just could not get his mind around the non-accommodative Fed was still accommodative and slowly hiking rates fits with a particularly bright moment in the economy???

Chinese stocks overnight were mixed (ended higher but had an ugly afternoon session)…

European stocks ramped into their close (before The Fed spoiled the party)…

Stocks had rallied into the Fed statement, kneejerked higher, then drifted lower aft …

China’s New Party Line: We’re Trying To Save The World From The US

Authored by Mac Slavo via SHTFplan.com,

China has accused the United States of “trade bullyism practices” that have become “the greatest source of uncertainty and risk for the recovery of the global economy.” And their new party line has become: “we’re trying to save the world from the US government.”

In a 71-page paper, the Chinese government came out swinging against the US’s efforts to ignite a disastrous trade war. They accused President Donald Trump’s administration of “trade bullyism practices” but worse, say they are attempting to save the world. According to CNBC, the document, which was published on Monday, outlined the Chinese government’s response to criticisms leveled against it by the US. Issues addressed in the report include the trade …

Ray Dalio: America Has About 2 Years Until The Next Recession

Since stepping back from running Bridgewater Associates, Ray Dalio has apparently had a lot of free time to author LinkedIn posts and make the media rounds promoting his new e-book (available for free on Amazon) “A Template for Understanding Debt Crises”. The substance of these interviews has been pretty consistent: Dalio argues that we’re nearing the end of the business cycle (the seventh inning, to be precise) and that, while stocks probably have more time to ramp higher, investors hoping to invest for the long term should be cautious: Because the next downturn is, at most, a year or two away.

As any trader familiar with Dalio’s “1937 thesis” is no doubt aware, Dalio is a student of history. In many ways, the modern economy resembles that of the late 1930s: Still-low interest rates have pushed asset prices near full capacity, the wealth gap has widened, populism is ascendant and economic tensions are intensifying around the world (thanks in large part to Trump’s trade war with China, of course).

As Dalio explains in an interview with Business Insider’s Henry Blodget, although the economy is running at full steam, rising interest rates will put a damper on activity, eventually triggering the inevitable downturn. However, with the Fed’s monetary toolkit already largely spent and the US budget deficit already precariously wide, US policy makers will have few options to help revive the economy. The only solution, Dalio believes, is to make sure “capitalism works for everyone.” Otherwise, the US will be doomed to repeat the late 1930s, when the economy kept lapsing into recession until it was finally saved by full-scale industrial warfare.

As Dalio ex …

The Fed Hikes Rates For The 8th Time, Ends “Accommodative” Era

The Fed’s eight rate-hike since 2015 was perhaps the most anticipated yet, and Jay Powell did not let investors down, delivering the 25bps hike everyone expected.

And so it was – but all eyes were on the dot plots and the language changes in the statement. As Bloomberg noted, Fed policy makers face two important decisions at their September meeting: One, whether to retain optionality around a potential fourth interest-rate increase in December; and, two, the appropriate policy trajectory as rates approach neutral.

Here are the Key Takeaways from the Fed report:

Only meaningful change in FOMC’s statement is removal of the sentence on maintaining “accommodative” policy.

The overview of the economy is same as August statement: labor market continues to strengthen, activity “strong.’

The decision to remove “accommodative” signals that the FOMC feels the US economy is getting closer to a neutral policy rate setting, which would be seen as dovish since the FOMC could pause at neutral. However, as Bloomberg notes, the dovish impact from the language is offset by the dots which show the FOMC is full speed ahead for four hikes this year a …

The Ratings Game: Nike says the Colin Kaepernick ‘Just Do It’ campaign is driving traffic and engagement

Nike’s CEO Mark Parker says the company is proud of its ad campaign featuring Colin Kaepernick, and it’s resonating around the world.

Bill Cosby goes to jail, and he’s not the only elderly American there

Prisons are transforming to accommodate older inmates.

Currencies: Dollar edges slightly after Fed hikes interest rates

The U.S. dollar sees fairly muted action Wednesday after the Federal Reserve met market expectations and raised interest rates for the third time in 2018.