News Regulators 

U.S. consumers forecast more spending than a year ago: NY Fed

“NEW YORK (Reuters) – U.S. consumers expect to spend more money in 2019 than they did a year ago, data from the Federal Reserve Bank of New York showed on Tuesday” reports businessinsider.com. Households expect larger increases in spending than they forecast the year prior on items including clothing, housing and transportation, data from the Survey of Consumer Expectations conducted in December showed. Source: businessinsider.com

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No recession but global growth will slow to a crawl this year, Janus Henderson says

“The world economy is headed for a period of “dull, low” growth, according to fund manager Janus Henderson, but the risk of an outright recession remains small” writes Thomas Lohnes for cnbc.com. “Our central forecast is not for a recession… It is just for dull, low growth,” she added.”There is definitely a slowdown in the momentum of the global economy.Most economists, as well as some the world’s business elite, agree that economic growth is slowing but policymakers have expressed some hope for a soft landing rather than a full-blown recession.I…

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EUR/USD Forecast Feb. 18-22 – Soft German and eurozone data weighing on euro

“The German and eurozone economies are in slowdown mode, as inflation, GDP and manufacturing data continue to struggle” writes Kenny Fisher for forexcrunch.com. We’ll also get a look at German and  eurozone PMIs.If there is a breakthrough in the conflict between the U.S. and China, sentiment could improve for the euro. Source: forexcrunch.com

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PepsiCo forecast surprise drop in 2019 core profit

“FILE PHOTO – Bottles of Pepsi are pictured at a grocery store in Pasadena Thomson Reuters (Reuters) – PepsiCo Inc forecast a surprise drop in full-year profit that was well below Wall Street estimates on Friday, hit by a stronger dollar, higher tax rate and increased investments in the business” reports businessinsider.com. The company expects 2019 adjusted profit per share to drop 3 percent to $5.50, while analysts on average were expecting a 3.5 percent rise in profit to $5.86 per share, according to IBES data from Refinitiv. Source: businessinsider.com

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News Stocks 

Applied Materials earnings beat diminished expectations, but stock falls as forecast comes up short

“Applied Materials shares dipped more than 2% in after-hours action following release of the results, after closing with a 0.3% decline at $40.71” writes Jeremy C for marketwatch.com. For the fiscal second quarter, Applied Materials guided for adjusted earnings of 62 cents a share to 70 cents a share on revenue of $3.33 billion to $3.63 billion.Analysts on average were expecting adjusted earnings of 76 cents a share on sales of $3.66 billion, according to FactSet.Analysts on average expected adjusted earnings of 79 cents a share on sales of $3.71…

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News Oil 

BP warns war on plastic will help cut global oil demand

“The oil major predicted a peak in global oil demand for the first time last year, and in its latest outlook report warned that a crackdown on plastic waste, which is made from fossil fuels, could play a role in slowing oil demand” writes Ben Marlow for telegraph.co.uk. The war on single-use plastics could cut demand for oil faster than previously expected over the next two decades, BP has warned.BP expects demand for oil to rise 0.3pc a year before plateauing in the 2030s.The “much slower” growth forecast is well below…

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EUR/USD Forecast Feb. 11-15 – Euro slips on weak retail sales, manufacturing reports

“The German and eurozone economies continue to produce weak numbers, underscored by weak scores in retail sales and manufacturing” writes Kenny Fisher for forexcrunch.com. The bank revised downwards its growth forecast for the eurozone to 1.9% in 2018, from 2.1% in the November forecast.For 2019, the growth forecast has also been revised down to 1.5%, compared to 1.9% in the November forecast.The European Commission economic forecasts projected moderate growth in the eurozone for 2019, but warned that significant uncertainties lie ahead.Eurozone retail sales plunged 1.6% in January, its worst reading…

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German exports rose in December

“German exports rose in December compared with November, according to official data, possibly offering some relief amid mounting concern about a slowdown in both the eurozone and its largest economy” writes Fabiana Negrin Ochoa for marketwatch.com. The rise in German exports follows an bleak string of weak economic data–including a slump in manufacturing orders–that has fanned fears that Germany’s economy is faltering.The Federal Statistical Office said Friday that exports increased 1.5% from the month before while imports rose 1.2%, with both figures taking into account seasonal swings and calendar effects.Germany’s…

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Treasurys follow European yields lower after cut to eurozone growth forecasts

“The German 10-year bond yield TMBMKDE-10Y, -24.31% retreated 4.4 basis points to 0.121%, while the Italian 10-year yield rose 7.5 basis points to 2.912%” writes Sunny Oh for marketwatch.com. The central bank also snipped its growth expectations for the United Kingdom to 1.2% this year from 1.7%.Treasury yields fell in early Thursday trading, dragged lower by a slide in European yields after eurozone growth expectations for this year were slashed, adding to mounting concerns a global economic slowdown was under way.On the other hand, Italian government paper sold off as…

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‘Fragility in Italy’s economy needs to be addressed,’ EU warns as it slashes growth forecasts

“The 19-member bloc is set to grow 1.3 percent this year, from a previous forecast of 1.9 percent” writes Tiziana Fabi for cnbc.com. Italy’s economy is already in trouble, however, with the latest GDP data showing that the euro zone’s third-largest economy had entered its third recession in a decade.Dombrovskis’ comments come as the European Commission cut its forecast for Italy’s growth in 2019 to 0.2 percent, from a previous prediction (made last November) of 1.2 percent. Source: cnbc.com

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