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Tesla shares gain after Elon Musk rules out capital raise in snarky tweet at the Economist

“Tesla Inc. shares rose almost 3% Friday, after Chief Executive Elon Musk reiterated that his company will not need to raise cash this year in a snarky tweet aimed at the weekly publication the Economist” writes Ciara Linnane for marketwatch.com. It assured investors that it wouldn’t need to raise capital via debt or equity this year, news that sent its stock higher.Tesla is likely to need to tap markets in the third quarter “to maintain an adequate cash cushion,” the analysts said. Source: marketwatch.com Share This:

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A Wall Street chief economist explains what could be the saving grace for mega-cap tech companies

“In general, Ithink its business model looks intact” writes Kara Chin for businessinsider.com.au. Hatheway:Well, I think for Amazon, it probably doesn’t really change much about that business model.Larry Hatheway:So, I think, first of all, the upcomingearningsseason, it kicks off this month.And many, not all of them, will probably report very, very strong earnings. Source: businessinsider.com.au Share This:

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Tariffs would hurt US consumers and companies, business group warns

“U.S. President Donald Trump’s tariffs on China could backfire and hurt U.S. consumers and companies instead, with over 2.5 million U.S. jobs relying on trade between the world’s top two economies, the chairman of the American Chamber of Commerce in China said” writes unknown author for cnbc.com. Beyond that, the escalating trade threats could hurt the United States’ international reputation, according to Simon Baptist, global chief economist at the Economist Intelligence Unit. Source: cnbc.com Share This:

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San Francisco’s John Williams to head New York Federal Reserve

“Because of its historical importance in the financial capital of the country and responsibility for carrying out the Fed’s monetary policy actions, the New York Fed has a permanent voting spot on the Fed’s monetary policy committee” writes Ap Photo Manuel for washingtonexaminer.com. He also is known for producing original research, including on the “natural” rate of interest, meaning the short-term interest rate that would go along with a fully healthy economy with stable inflation.Economist and central banker John Williams will serve as the next president of the Federal Reserve…

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‘Somebody playing with a knife on a playground’: An economist came up with the perfect analogy for Trump’s trade war talk

“And then you end up with not only a potential collapse in trade, but also the international trade framework.”” writes Bob Bryan for businessinsider.com. Daco said this sort of rhetoric does have real consequences outside of international trade relations.In a colorful analogy, the economist said the strategy presents a potential host of problems in the longer-term. Source: businessinsider.com Share This:

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Economist fears a 30 percent stock market correction with consumer spending ‘maxed out’

“Overall, the global economy is currently experiencing lower levels of unemployment and higher growth” writes unknown author for cnbc.com. “All the data we’ve seen over the last few weeks has basically been that the consumer is maxed out, we’ve seen that in credit card loans as well, so I think the consumer is done spending the money,” he told CNBC Tuesday.He added that in a scenario of a potential sudden economic recession, he sees a possible market correction of between 25 and 30 percent.Looking at 2018 in particular, many analysts…

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‘It’s just chaos’: Nobel Prize-winning economist Robert Shiller warns that an ‘economic crisis’ is brewing

“Nobel prize-winning economist Robert Shiller has warned that growing trade tensions between the United States and China could spark the next US economic crisis” writes Business Insider Australia for businessinsider.com. “The immediate thing will be an economic crisis because these enterprises are built on long-term planning, they’ve developed a skilled workforce and ways of doing things.Speaking at the China Development Forum in Beijing over the weekend, Shiller said a potential trade war between the world’s largest economies risked stalling business investment, leading to the potential for an immediate economic downturn. Source:…

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Powell will use press conference to counterbalance hawkish undertone of Fed’s forecasts

“In essence, economists expect Powell will replay his two-day testimony to Congress from last month” writes Senior Economics Reporter for marketwatch.com. Fed Chairman Jerome Powell may use his first press conference to counterbalance an obvious hawkish tilt among this year’s voting members of the central bank’s policy panel.Economists expect Powell to be extremely cautious when he talks about Republican economic and trade policy. “Powell is a savvy guy.The Fed’s interest-rate committee is “a hell of a lot more hawkish” this year, said Carl Tannenbaum, chief economist at Northern Trust. Source: marketwatch.com…

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China has appointed an American-trained economist to head its central bank

“SHANGHAI (Reuters) – China has selected American-trained economist Yi Gang to become the country’s new central bank governor, the Wall Street Journal reported on Sunday, citing unnamed people with knowledge of the matter” reports businessinsider.com. The WSJ said the nomination of Yi, who is currently deputy to incumbent central bank governor Zhou Xiaochuan was reviewed by the nearly 3,000 delegates attending the National People’s Congress on Sunday afternoon. Zhou, the country’s longest-serving central bank head, said in October that he was likely to retire soon and sources with ties to…

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What to expect from the new Fed dot plot on interest rates

“Meyers said the Fed is likely to stick to its December forecast of three rate hikes” writes Senior Economics Reporter for marketwatch.com. In the last projection in December, only four of 16 Fed officials forecast four rate hikes.Following the meeting, the central bank will release new economic projections, an updated dot plot and a policy statement.She expects the Fed to raise its forecast of 2.5 hikes in 2019 to a full three hikes. Source: marketwatch.com Share This:

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