Mnuchin reaffirms Fed's independence after Trump complaints on rates

WASHINGTON -- US Treasury Secretary Steve Mnuchin offered assurances Sunday over the independence of the Federal Reserve as it heads into a two-day policy meeting that is expected to leave interest rates untouched despite a booming US economy.

In an appearance on Fox News Sunday, Mnuchin touted the economy's performance as being on a path of rapid, sustainable growth after stellar 4.1 percent growth in the second quarter.

But he also was forced to allay concerns raised by President Donald Trump's recent, eyebrow-raising complaints about Fed moves to raise interest rates.

"We, as an administration, absolutely support the independence of the Fed, and the president has made it clear that this is the Fed's decision," Mnuchin said. "Let me be clear, he absolutely respects the independence of the Fed."

Presidents usually refrain from public comment on the Fed's business, but that did not stop Trump from publicly chastising the bank earlier this month.

"I don't like all of this work that we're putting into the economy and then I see rates going up," he said in an interview with CNBC on July 20. 

The central bank is expected to hold its fire on interest rates at its two-day policy-setting meeting, which begins Tuesday.

But it is widely thought to be ready to raise rates twice more this year as inflation mounts, the jobless rate falls and the economy continues to soar.

After boosting the benchmark lending rate in March and June, the US economy has continued humming, with inflation at last hitting the Fed's two percent target rate.

Most economists say the central bank has every reason to stick to its current course of gradual increases, which has seen the federal funds rate rise seven times since December 2015.

Futures markets overwhelmingly expect rate hikes in September and December, with the probability only increasing after Friday's blockbuster GDP report.

"At least right now, the economy still looks pretty strong, more than strong enough to keep the unemployment rate coming down," Jim O'Sullivan of High Frequency Economics told AFP.

While most economists expect growth to slow in the rest of the year, Mnuchin predicted annual growth of at least 3 percent well into the future.

"So I don't think this is a one- or two-year phenomenon," he said. "I think we definitely are in a period of four or five years of sustained three percent growth at least."

Still, Trump told CNBC he was "not thrilled" about the Fed's plans to continue tightening and took to Twitter to say America should be allowed to recoup the losses before rates rise again.

"Every time you go up, they want to raise rates again," he told the network. "I am not happy about it. But at the same time, I'm letting them do what they feel is best."

The Federal Reserve is legally and fiscally separate from the federal government.

But Sarah Binder, a Brookings Institution expert on the politics of the Federal Reserve, said despite its legal status, the Fed sits at the center of the political system.

JOINING THE FRAY

"Although we call it a norm, this expectation that the president is going to refrain and restrain himself from commenting on the Fed's policies, it's really just a short-lived practice," she told AFP.

"In that sense, Trump is just joining the political fray."

President Lyndon Johnson summoned Fed Chairman William McChesney Martin to his ranch after the Fed boosted rates in 1965.

Nixon bullied Martin's successor, Arthur Burns, into holding rates low in the 1970s, ushering in the decade's disastrous inflation.

More than 20 years later, President George H.W. Bush publicly called on Fed Chairman Alan Greenspan to cut interest rates -- and later blamed Greenspan for his defeat in the 1992 elections.

It was only under President Bill Clinton that the Fed's deliberations took on an air of inviolability.

The Fed has not reacted to Trump's comments, pointing reporters instead to earlier remarks by current Chairman Jerome Powell, who said central bankers kept political independence "deep in our DNA."

And analysts warned that openly challenging the Fed's independence could backfire.

Former Fed vice chair Alan Blinder told AFP he would have defied such interference.

"My attitude would have been, and I believe the attitude of most members of the Federal Open Market Committee would have been, to stiffen our backs and show that we're not taking instructions from the White House."

And Blinder said Trump's interference could create static in the Fed's efforts to signal its intentions to markets -- which prevents undue turmoil when a new move is announced.

If the Fed is seen as yielding to Trump's pressure or overreacting by tightening policy more, markets could begin to second-guess their motives.

"We don't want either," Blinder said. "It is foolish for the president of the United States to make their job harder."

source: news.abs-cbn.com

Dollar drops further on Trump's comments on currency, rate hike

NEW YORK - The dollar fell across the board on Friday, as the latest comments by U.S. President Donald Trump complaining about the strength of the greenback and the rise in U.S. interest rates squashed a rally that took it to a one-year high the previous session.

The U.S. currency extended losses in afternoon trading after CNBC reported that Trump was worried the Federal Reserve will raise interest rates twice more this year.

The dollar index, a measure of its value against a basket of six major currencies, erased three days of gains. Against the yen, the dollar recorded its largest daily fall since February.

The latest report, which cited a White House official, followed Trump's criticism on Thursday of the Fed's interest rate policy and the strong dollar, saying that it could hurt the U.S. economy.

Trump earlier told CNBC that a strong dollar put the United States at a disadvantage and he was ready to place tariffs on $500 billion of imported goods from China

Analysts said the rise in the U.S. dollar this year was due in part to the president's growth-oriented policies, which have bolstered the Federal Reserve's case for raising rates.

The fiscal stimulus provided by tax reform is expected to lead to additional inflation and tighter labor markets, said Mazen Issa, senior FX strategist at TD Securities in New York.

"The Fed is responding to the inputs that have been provided," he said.

In afternoon trading, the dollar index was 0.77 percent weaker at 94.417, after hitting a one-year high of 95.62 in the previous session.

source: news.abs-cbn.com

Wall Street in 2018: the biggest risks for stocks

NEW YORK - Wall Street's rally could have another leg up next year thanks to a sweeping tax cut and economic momentum, but investors are counting the risks that could abruptly end the party.

The S&P 500 is up about 20 percent with less than a week to go of 2017, and many strategists expect the bull run that began in 2009 to extend into next year, albeit with smaller gains. Optimism is high following sweeping tax cuts passed by Congress last week that are expected to give an added boost to corporate profits next year.

But strategists and investors highlight these risks for the year ahead:

FED GETS TOO AGGRESSIVE 

The pace of interest rate hikes, particularly after stronger economic data, could derail the market, say some. The US economy grew at its fastest pace in more than 2 years in the third quarter.

Wall Street's top banks expect the Fed to raise US interest rates 3 times in 2018, matching the number of rate hikes this year and the central bank's own outlook.

"That will be a risk for the market," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "You're going to risk inverting the yield curve at that point and provide a reasonable competition to equities."

INFLATION ACCELERATES 

Some strategists fear inflation will accelerate too quickly as economic growth picks up, creating margin pressure and putting pressure on the Fed to bump up rates faster than investors expect.

"Inflation could be a global game-changer for stock and credit markets," Bank of America Merrill Lynch analysts said in their 2018 outlook this month, adding that wage inflation was potentially the most important factor for the stock market.

MIDTERM ELECTIONS AND POLITICAL UNCERTAINTY  

Investors will pay close attention to next year's midterm elections. Democrats are hoping to reclaim seats in Congress, now controlled by Republicans.

"If the Republicans lose the House or Senate, or both, then that would probably be a big negative for the market," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey. "The market would begin to worry that... the Trump agenda will be stopped in its tracks."

GEOPOLITICAL PROBLEMS GET WORSE  

Rising tensions between the United States and North Korea rattled markets around the world in 2017, but Wall Street was able to shake off those worries. Next year, these and other geopolitical concerns are likely to come up again, strategists said.

"Tensions abound, remaining elevated with North Korea and rising in the Middle East," Keith Lerner, chief market strategist and managing director, portfolio and market strategist, SunTrust Advisory Services, Inc, in Atlanta, Georgia, wrote in his 2018 outlook note.

Also, "the political pendulum is swinging toward populism and nationalism across the globe."

Next year is expected to include key elections in Italy, Mexico and Brazil, among others.

VALUATIONS KEEP RISING, ALONG WITH SENTIMENT  

While strategists expect US earnings to get an added jolt of adrenalin next year because of the tax cuts, some worry it might not be enough to justify stretched valuations.

The S&P 500 is trading at about 18.5 times forward earnings, the highest since 2002, Thomson Reuters data shows.

Investor sentiment could raise some concerns, according to a Dec. 15 note from Citigroup's Chief US Equity Strategist Tobias Levkovich.

Citi's panic/euphoria model is signaling a greater than 60 percent probability of a down market by this time next year, "which is akin to waving a yellow flag of caution," he wrote.

CRYPTOCURRENCY RUN REVERSES FAST   

The world's biggest and best known digital currency, bitcoin, has been on a tear, and could be a wild card for 2018.

"Bitcoin is on a momentum run, and momentum plays go until they don't anymore," said Bob Doll, senior portfolio manager and chief equity strategist at Nuveen Asset Management, adding that investors would ask: "'If Bitcoin can go down a multiple tens of percent, why can't my stocks as well?

source: news.abs-cbn.com

US stocks, dollar climb as House approves tax overhaul

NEW YORK - US stocks rose and the dollar edged higher against a basket of major currencies on Thursday after the US House of Representatives passed its version of a tax overhaul bill.

Earnings-related gains in Wal-Mart and Cisco also boosted stocks, and the MSCI index of world stocks rose after 5 consecutive daily losses.

The Dow Jones Industrial Average and the S&P 500 chalked up their biggest percentage gains in over 2 months.

The House approved a broad package of tax cuts affecting businesses, individuals and families, moving Republicans and President Donald Trump an important step closer to the biggest tax code overhaul in a generation.

The legislative battle now shifts to the Senate, where the Republican majority is much slimmer. Republicans can lose no more than 2 Senate votes and at least 2 GOP senators have already spoken against the Senate version of the bill.

"The tax plan isn't a foregone conclusion but it passed the lowest hurdle in the House," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.

"The even higher hurdle is to have something pass in the Senate. The reconciliation will be the real measure if it happens," he said.

The dollar index, which hit 93.813 on Wednesday, its lowest since Oct. 20, was also supported by a general improvement in risk appetite across financial markets. The index was last up 0.1 percent.

The Dow rose 187.08 points, or 0.8 percent, to 23,458.36, the S&P 500 gained 21.02 points, or 0.82 percent, to 2,585.64 and the Nasdaq Composite added 87.08 points, or 1.3 percent, to 6,793.29.

The pan-European FTSEurofirst 300 index rose 0.65 percent and MSCI's gauge of stocks across the globe gained 0.80 percent.

Oil prices extended their losing streak as rising US production and inventories threatened to undermine a rally sparked by tightening world supply as a consequence of OPEC's curbs on output.

US crude declined 19 cents to settle at $55.14 a barrel while Brent crude fell 51 cents to settle at $61.36.

US Treasury two-year yields hit a 9-year high as risk appetite recovered globally and a batch of neutral to solid economic reports put the Federal Reserve on track to raise interest rates in 2018.

The rise in 2-year yields pushed the curve to its flattest in a decade. The yield curve has declined for four straight days.

The gap between US 2-year note and US 10-year note yields contracted to 63.2 basis points m the tightest since November 2007. The gap was last at 65.1 basis points.

In late trading, the 10-year Treasury yield rose to 2.355 percent, from 2.335 percent late on Wednesday. US 2-year yields climbed to a 9-year peak of 1.716 percent, from 1.691 percent on Wednesday. Two-year yields were last at 1.712 percent.

source: news.abs-cbn.com

Bankrupt US retailers begin to catch a break

An unexpected helping hand from creditors, landlords and vendors is allowing more US retailers to stay in business following bankruptcy with most of their stores and employees in the fold.

The new approach marks a turning point for the beleaguered sector, which has seen at least 19 brick-and-mortar retail chains shut down the bulk of their operations since 2014.

Until this year, most bankrupt retailers, including American Apparel, Sports Authority and The Limited, were dismantled during their bankruptcy process. Investors and companies acquired their intellectual property and other assets, but refused to take on their business as a going concern because they saw little value in assuming costly store leases. Instead, they often opted to revamp some of the battered brands online.

 However, several creditors, landlords and vendors now see more value left in some retailers, and are seizing on an opportunity to minimize their own losses in the retail rout.

This could spell a slowdown in the decline in brick-and-mortar retail jobs, which fell by more than 100,000 this year, as more than 6,000 stores shuttered under increasing pressure from competition among traditional retailers as well as e-commerce firms such as Amazon.com Inc.

"We're seeing a set of situations come together in which the constituencies have more interest in the retailer surviving than not," said Holly Etlin, a managing director at AlixPartners LLP, a consulting firm that worked on the bankruptcy of Gymboree.

Jeans company True Religion Apparel Inc and perfume wholesaler and retailer Perfumania Holdings Inc are set to emerge from bankruptcy with at least some of their stores in operation, according to interviews with bankruptcy attorneys and a Reuters review of financial information of more than 15 retailers shared with bankruptcy courts.

These chains will follow a path blazed by Payless ShoeSource, which in August emerged from bankruptcy while keeping more than 3,400 out of its 4,200 stores worldwide, and preserving 19,000 of its 22,000 employees.

Last month, teen clothing shop rue21 Inc and children's apparel chain Gymboree Corp came out of bankruptcy in similar fashion, preserving much of their store footprints and employee headcount.

Most of these retailers were owned by private equity firms, which saddled them with debt in a risky bid to juice returns. But in bankruptcy talks, the chains are arguing successfully that they can generate enough cash to withstand the sector's woes if their debt mountains are slashed and payment obligations eased.

Creditors, landlords and vendors are more receptive to this approach, because their own financial projections show that liquidations would result in a limited recovery of what they are owed, according to interviews with debt investors and bankruptcy court filings.

Had rue21 liquidated, for example, many loan holders would have seen almost the entire value of their investment wiped out by the end of its five-month bankruptcy process, according to bankruptcy court filings and people familiar with the matter.

This new reality offers grounds for optimism for Toys "R" Us Inc, which last month became the largest retail bankruptcy in 13 years. The biggest US specialty toy retailer plans to emerge from Chapter 11 bankruptcy with many of its about 1,600 stores, employing 64,000 people, remaining open.

Toys "R" Us plans to argue that its annual cash flow of roughly $800 million would make it viable if its $5.2 billion in debt is significantly reduced, according to court papers and people familiar with the matter.

CREDITOR SUPPORT KEY

If a retailer's brand is strong enough and its operations can be improved, creditors see greater value in forgiving some of their debt in exchange for equity stakes, rather than recouping pennies on the dollar in a liquidation.

David Tawil, president at distressed-focused hedge fund Maglan Capital, said it makes sense for creditors to extend new money, often at high interest rates, in exchange for a fully restructured balance sheet and a better business plan.

"Otherwise, there may be a very, very steep haircut (in the value of the debt) to be taken upon a liquidation," Tawil said.

For example, a group of Gymboree investors, including distressed debt-oriented hedge fund Brigade Capital Management LP and buyout firm Searchlight Capital Partners LP, agreed to keep it in business by writing off most of their term loan and investing another $95 million, in exchange for equity ownership, court filings showed.

Gymboree and Brigade declined to comment.

"There is always risk taking (the company) through bankruptcy, but we believed that it was a better path with more upside versus liquidating, where the recovery is pretty minimal and you forego any upside opportunities," said Searchlight partner Eric Sondag. He added that Gymboree's strong brand was a key consideration in Searchlight deciding to back it.

Many landlords that rent out store space are also willing to provide relief rather than seeking another tenant amid a glut of unused mall space. Rue21's landlords granted rent reductions of about 20 percent on its remaining 758 stores, according to a person who asked not be identified because the terms of the lease deals are not public.

VENDORS WAIT LONGER TO BE PAID

Supplier support is also critical. Vendors can offer longer payment terms, helping retailers free up working capital to operate. They are often promised full repayment on their claims in return.

Hong Kong-based Li & Fung Ltd, a supply chain manager that helps retailers work with apparel and accessories makers, gave Gymboree a 75-day repayment period in exchange for full payment on its claims in the bankruptcy, people familiar with the matter said.

Before Gymboree filed for bankruptcy, the retailer also extended Li & Fung a $20 million secured claim, helping keep merchandise flowing to its stores, the sources added. Li & Fung declined to comment.

Toys "R" Us has also fought to keep suppliers onboard, accelerating its plan to file for bankruptcy to be able to pay them. It has been making progress in winning back vendors who curbed shipments over payment fears.

"We believe (in Toys 'R' Us)... they are a good channel and important to the toy industry," said Michael Araten, chief executive of K'Nex Limited Partnership Group, a toymaker that is now negotiating new shipment terms.

source: news.abs-cbn.com

Wal-Mart profits fall as it ramps investment to fight Amazon

NEW YORK - Walmart updated investors Thursday on its latest new gadgets and time-saving pickup options to lure shoppers to stores and away from arch-rival Amazon.

The good news? The company's array of investments in e-commerce, store beautification, low prices and higher employee pay are indeed driving up store traffic.

The bad news? Profits are down.

Walmart US, the biggest division at Wal-Mart Stores, scored a 1.8 percent rise in comparable sales in the second quarter compared with the year-ago period, its 12th straight quarter with positive sales in the closely-watched benchmark.

Revenues rose 2.1 percent to $123.4 billion.

But net income fell 23.2 percent to $2.9 billion. Factors included more aggressive spending on e-commerce and low price investments, as well as costs of $788 million connected to a one-time debt payment.

Executives expressed confidence in Wal-Mart's strategy and highlighted an especially strong performance in the US grocery business, which experienced the biggest jump in five years, in part due to price inflation in meat and produce.

Wal-Mart holds the biggest share of the US grocery market of any retailer, with its network of nearly 4,700 stores that the company says are located within 10 miles of about 90 percent of the US population

But Wal-Mart is girding for a more direct head-to-head battle with Amazon with the tech giant's impending purchase of Whole Foods Market.

"Amazon are a really strong competitor," said Wal-Mart US chief executive Greg Foran in a conference call with reporters. "We've got a good strategy. I'm comfortable with what we're doing."

"Obviously we're keeping an eye on what a strong competitor is doing," he added.

New tech-oriented initiatives include the expansion of a program that lets consumers pick up online orders to more than 900 locations, up from 670 in the prior quarter.

Consumers are also able to reorder their most frequent purchases with a few quick clicks and can utilize automated "pickup towers" to receive goods after scanning in a barcode.

Shares of Wal-Mart fell on the report, ending down 1.6 percent at $79.70.

Although the earnings bested analyst expectations, investors were "a bit disappointed" with some of Wal-Mart's third-quarter profit forecast, said a note from Briefing.com

But the decline also reflected a pullback after Wal-Mart gained 11 percent over the last month, Briefing.com added.

"We note the decline in net income, but believe that some short term erosion is necessary as the business invests in its future," said Neil Saunders, managing director at GlobalData Retail.

"In our view, Walmart is a demonstration that traditional businesses can survive and thrive in this era of retail if they are prepared to adapt and evolve."

source: news.abs-cbn.com

Asia stocks, dollar get boost from firm Wall St, US jobs

SINGAPORE - Asian stocks advanced on Monday, taking their cue from Wall Street's strong end to the previous week, while the dollar finally pulled ahead after stronger-than-expected jobs growth in July.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 percent in early trade.

Japan's Nikkei added 0.5 percent.

South Korea's KOSPI climbed 0.3 percent, while Australian shares jumped 0.8 percent.

The dollar steadied early on Monday following strong gains on Friday after data showed US non-farm payrolls rose by 209,000 jobs last month, and June's employment gain was revised higher.

Growing signs of labor market tightness offer Federal Reserve policy makers some assurance that inflation will gradually rise to the central bank's 2 percent target, and likely clear the way for a plan to start shrinking its massive bond portfolio.

The dollar was also buoyed by comments from National Economic Council director Gary Cohn that the US administration is working on a tax plan that would bring corporate profits back to the United States.

The dollar index, which tracks the greenback against a basket of 6 global peers, inched back almost 0.1 percent to 93.462. It rallied 0.76 percent on Friday, its biggest one-day gain this year.

The dollar also pulled back slightly against the euro to $1.17805 per euro, after surging 0.8 percent on Friday.

The greenback rose 0.1 percent to 110.78 yen, extending Friday's 0.6 percent gain.

"The most logical view here is the moves on Friday were clearly just a sizeable covering of USD shorts, from what was one of the biggest net short positions held against the USD for many years," Chris Weston, chief market strategist at IG in Melbourne, wrote in a note.

For the dollar rally to gain momentum, the market needs to change its interest rate pricing, and that hasn't happened yet, Weston added.

Markets are pricing in an even chance of an interest rate hike in December.

The lift in sentiment from Friday's jobs data also supported Wall Street. The Dow closed 0.3 percent higher, its eighth consecutive record high. The S&P and Nasdaq ended the session up 0.2 percent.

In commodities, oil prices retained gains as the strong jobs data bolstered hopes for growing energy demand.

US crude was little changed at $49.55 a barrel early on Monday, after rising 1.1 percent on Friday.

Global benchmark Brent was also steady holding on to Friday's 0.8 percent gain.

The stronger dollar weighed on gold, with the precious metal flat at $1,257.31, failing to make up any of Friday's 0.8 percent loss.

source: news.abs-cbn.com

Asia stocks edge higher, dollar languishes ahead of US jobs data

SINGAPORE - Asian stocks inched up on Friday after a technology-led drop on Wall Street, with gains kept in check by investors' reluctance to stake out fresh positions ahead of US jobs data later in the global day.

European markets look set for an underwhelming start, with financial spreadbetter CMC Markets expecting Britain's FTSE 100 , Germany's DAX and France's CAC 40 to open little changed.

The dollar hovered near the 2-1/2-year-low against the euro touched earlier this week, pressured by signs that probes into possible Russian interference in the 2016 U.S. elections are gathering pace.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent. The index was poised to climb 0.4 percent for the week, taking its gains so far this year to 24 percent.

Philippine shares bucked the downtrend, up 0.66 percent to 7,928.22 in late trading.

Japan's Nikkei dropped 0.3 percent on a stronger yen, and looked set to end the week little changed.

South Korea's KOSPI, which closed at a 3-1/2-week low on Thursday, recovered 0.4 percent, narrowing its losses for the week to 0.2 percent.

China's blue-chip CSI 300 reversed early losses to trade up 0.1 percent. Hong Kong's Hang Seng was slightly higher.

Overnight, the S&P and Nasdaq closed 0.2 percent and 0.35 percent lower respectively, with the declines led by technology shares.

But the Dow managed to post slight gains, staying above the 22,000 level breached on Wednesday.

US stocks fell to intraday lows late on Thursday after the Wall Street Journal reported that Special counsel Robert Mueller has constituted a grand jury to investigate allegations of Russian interference in the 2016 presidential election.

Two sources told Reuters on Thursday that the grand jury has issued subpoenas in connection with a June 2016 meeting that included US President Donald Trump's son, his son-in-law and a Russian lawyer.

"Politics came to the forefront once again with the latest developments in the Trump-Russia probe," said Jingyi Pan, market strategist at IG in Singapore, who added that "equity markets continued with a semblance of calm awaiting Friday's US jobs report".

Non-farm payrolls were expected to have increased by 183,000 jobs last month after surging by 222,000 in June, a Reuters survey of economists found. The unemployment rate is seen falling one-tenth of a percentage point to 4.3 percent.

The dollar weakened against the euro, with the common currency up 0.1 percent at $1.188, just a whisker below its highest level since January 2015 hit on Wednesday. The euro is set to end the week 1.15 percent stronger.

The dollar index, which tracks the greenback against a basket of six major peers, languished near the 15-month low hit earlier this week. It was down almost 0.1 percent on Friday at 92.776, set to end the week 0.5 percent lower.

The dollar was marginally higher at 110.08 yen, failing to make up most of Thursday's 0.6 percent loss. It is on track for a weekly loss of 0.6 percent.

Benchmark 10-year Treasury notes were at 2.228 percent on Friday. On Thursday, they fell to as low as 2.218 percent, their lowest level since late June, and closed at 2.228 percent.

Sterling on Friday revisited a nine-month low against the euro hit overnight after the Bank of England's policymakers kept interest rates at a record-low 0.25 percent.

"With the central bank downgrading its UK GDP growth forecast for both this year and 2018, sterling is poised for further punishment down the road," Lukman Otunuga, research analyst at ForexTime, wrote in a note.

Sterling was at 0.9041 against the euro on Friday, after falling to as low as 0.9048, its weakest since Nov. 2.

That helped lift the FTSE 0.85 percent overnight.

Venezuela's bolivar currency tumbled 18 percent against the US dollar on Thursday on the black market, ahead of the inauguration of a legislative superbody that the opposition says will give President Nicolas Maduro sweeping new powers.

In commodities, oil prices continued to be weighed down by persistent concerns about high crude supplies from both OPEC and the United States.

US crude slipped 0.2 percent to $48.93 a barrel, after sliding 1.1 percent overnight, putting it on track for a weekly loss of 1.6 percent.

Global benchmark Brent also dropped 0.2 percent to $51.91, extending Thursday's 0.7 percent loss, headed for a 1.2 percent weekly decline.

Spot gold was steady at $1,268.12 an ounce, holding on to Thursday's 0.15 percent gain, and set to end the week little changed.

source: news.abs-cbn.com

S&P affirms US debt rating at second highest

WASHINGTON - The Standard & Poor's rating agency has affirmed the United States' long-term debt rating at AA+, but noted the world's largest economy faced uncertain fiscal policy.

The rating, one notch below the top grade, is justified by the "resilient" US economy, flexible monetary policy and America's unique position as the issuer of the global currency of reserve, S&P said in a statement.

The US lost its AAA rating in 2011, following battles among lawmakers in Washington over whether to lift caps on US sovereign borrowing, raising the likelihood of a US default.

S&P noted that another deadline for raising the debt ceiling loomed.

While Congress is expected to raise or suspend the debt limit albeit "potentially with heated discussion," S&P said the debate "weighs on the economy."

S&P noted the high level of US government debt, and said uncertainty about the future of economic policy constrains the US rating, even while it also affirmed a stable outlook.

source: news.abs-cbn.com

U.S. durable goods data points to pickup in business spending

WASHINGTON - New orders for key U.S.-made capital goods rose less than expected in March, but a second straight monthly increase in shipments suggested business investment accelerated in the first quarter amid a recovering energy sector.

While other data on Thursday showed a bigger-than-expected increase in first-time applications for unemployment benefits last week, the trend remained consistent with tightening labor market conditions.

The Commerce Department said non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 0.2 percent last month after gaining 0.1 percent in February.

Shipments of these so-called core capital goods rose 0.4 percent after jumping 1.1 percent in February. Core capital goods shipments are used to calculate equipment spending in the government's gross domestic product measurement.

Economists had forecast core capital goods orders rising 0.5 percent last month. March's modest increase suggests a loss of momentum in the manufacturing sector after recent strong growth.

Manufacturing, which accounts for about 12 percent of the U.S. economy, is being underpinned by the energy sector revival.

Energy services firm Baker Hughes said last Friday that U.S. oil rigs totaled 688 in the week ending April 21, the most in two years. U.S. drillers have added oil rigs for 14 straight weeks and shale production in May was set for its biggest monthly increase in more than two years.

Business spending on equipment is expected to have accelerated from the fourth-quarter's annualized 1.9 percent growth pace and will likely be one of the few bright spots when the government publishes its advance first-quarter GDP estimate on Friday.

The Atlanta Federal Reserve is forecasting GDP increasing at a 0.5 percent rate in the first quarter, a sharp slowdown from the fourth-quarter's 2.1 percent pace. With the labor market near full employment, the anticipated slowdown in growth likely understates the health of the economy.

TIGHTENING JOBS MARKET

In a separate report on Thursday, the Labor Department said initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 257,000 for the week ended April 22.

Claims have now been below 300,000, a threshold associated with a healthy labor market, for 112 straight weeks. That is the longest such stretch since 1970, when the labor market was smaller.

Economists had forecast first-time applications for jobless benefits rising to 245,000 last week. Claims, however, tend to be volatile around this time of the year because of the different timings of spring and Easter holidays.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 500 to 242,250 last week, the lowest level since February.

U.S. financial markets were little moved by the data.

Manufacturing could get a lift from President Donald Trump's proposed tax plan, announced on Wednesday, that includes cutting the corporate income tax rate to 15 percent from 35 percent.

Last month, orders for machinery slipped 0.2 percent, but shipments increased 0.7 percent. Orders for primary metals rose in March as did shipments of these products. Electrical equipment, appliances and components orders and shipments also increased last month.

There were, however, declines in orders for fabricated metal products and computers and electronic products.

Last month, overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, increased 0.7 percent after surging 2.3 percent in February. Civilian aircraft orders increased 7.0 percent.

Orders for motor vehicles and parts fell 0.8 percent, declining for a second straight month.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

source: news.abs-cbn.com

Chided by Trump, Ford scraps Mexico factory, adds Michigan jobs

FLAT ROCK, Michigan/WASHINGTON - Ford Motor Co. on Tuesday scrapped a planned Mexican car factory and added 700 jobs in Michigan following criticism by Donald Trump, as the US president-elect turned his attention toward rival General Motors Co. with the threat of a "big border tax" over compact cars made in Mexico.

Ford CEO Mark Fields called the move "a vote of confidence" in Trump, but primarily a response to a decline in North American demand for small cars like those that would have been made at the Mexican plant. He said Ford would have made the same decision even if Trump had not been elected.

Ford will cancel plans unveiled in April to spend $1.6 billion to build the new plant in San Luis Potosi, Mexico, a project Trump urged the automaker to abandon and called an "absolute disgrace" during the election campaign.

The No. 2 US automaker also said it would invest $700 million to expand the Flat Rock, Michigan factory and would make new electric, hybrid and autonomous vehicles there.

Trump's efforts to browbeat the US car industry show he may go further than other modern presidents to try to influence corporate decisions, especially those related to trade and investment.

In a Twitter post hours before Ford's announcement, Trump wrote, "General Motors is sending Mexican made model of Chevy Cruze to US car dealers-tax free across border. Make in USA or pay big border tax!" GM, the largest US automaker, said making some of the Cruze cars in the plant in Coahuila, Mexico was part of its strategy to serve global customers, not sell those vehicles in the United States.

Trump's GM tweet was his latest broadside aimed at an American company over jobs, imports and costs even before he takes office on Jan. 20.

Mexico's government said it regrets Ford's decision and has ensured that the company will reimburse San Luis Potosi state for any costs associated with the investment.

"Obviously, this isn't a good decision for us," said Mexico's economy minister, Ildefonso Guajardo.

Ford said it still will shift production from Michigan of its Focus compact car to an existing plant in Hermosillo, Mexico. Fields said he expects Michigan to give incentives for Ford's investment in Flat Rock.

Ford spokeswoman Jennifer Flake said the automaker will save $500 million by not opening the new plant in the near term, but will have some undisclosed costs to retool the other Mexican plant to build the Focus.

Ford shares closed up about 3.8 percent. GM shares rose about 0.9 percent.

TRUMP NOTIFIED

Top Ford executives personally notified Trump and Vice President-elect Mike Pence of their decision. Fields praised tax and regulatory proposals advocated by Trump and his fellow Republicans who control Congress.

"Our view is that we see a more positive US manufacturing business environment under President-elect Trump and the pro-growth policies and proposals that he's talking about, so this is a vote of confidence for President-elect Trump and some of the policies that they may be pursuing," Fields said.

Union workers gathered at the Flat Rock factory cheered Fields' announcement. Hiring of the 700 new workers there will probably start in 2018 with the majority of it in 2020, Fields said.

Trump said during the presidential campaign that if elected, he would not allow Ford to open the new plant in Mexico and would slap hefty tariffs on imported Ford vehicles. Trump also accused Mexico of sending criminals and rapists into the United States and vowed to build a border wall to combat illegal immigration.

Since winning the Nov. 8 election, Trump has targeted a wide range of American companies also including United Technologies Inc, Boeing Co. and Lockheed Martin Corp. Trump also has touted decisions by companies to keep some production in the United States, including United's Carrier unit in Indiana.

Trump previously vowed to hit companies that shift production from America to other countries with a 35 percent tax on their exports into the United States. He also has denounced the North American Free Trade Agreement between the United States, Mexico and Canada.

Fields said there were no negotiations between Ford and the incoming president over canceling the Mexico plant or investing in Michigan.

Ford will build a battery electric SUV with a 300-mile (482-km) driving range at the Michigan plant by 2020, and will launch production there by 2021 of a fully autonomous vehicle without a steering wheel or a brake pedal for use in ride services fleets. Ford also plans new hybrid versions of its F-150 pickup truck, Mustang and police vehicles by 2020.

GM said it sold about 190,000 Cruze cars in the United States in 2016. All of the sedan versions sold in the United States, about 185,500, were built at its Lordstown, Ohio plant. About 4,500 hatchback Cruze versions were assembled in Mexico and sold in the United States.

source: news.abs-cbn.com

US economy growing, price gains slight: Fed survey

WASHINGTON - The US economy continues to expand nationwide with only slight upward price pressures despite reports of tightening labor markets and higher wages, the Federal Reserve's Beige Book survey said Wednesday.

All but two of the 12 Fed districts reported at least a slight increase in economic activity, with only New York seeing no expansion at all, and six reporting "moderate" growth and four describing it as "modest." But the strong dollar is weighing on manufacturing in some districts.

The report, which collects views of economists, business contacts and others in the 12 Federal Reserve districts in preparation for the monetary policy meeting next month, noted improved retail sales and home construction in most regions.

However, the manufacturing situation was mixed "with the strong dollar being cited as a headwind to more robust demand in a few Districts," the report said.

In addition, vehicle sales fell in most regions, which some said "might be attributed to uncertainty surrounding the presidential election" that took place November 8.

Analysts are nearly unanimous in expecting the policy-setting Federal Open Market Committee to raise the key benchmark interest rate when it next meets December 13-14, which would be the first hike in a year and only the second since rates were lowered to near zero in December 2008.

A key factor policymakers are watching are signs of inflation, including rising wages.

The Fed report noted that employment had continued to expand and seven districts saw signs of tighter labor conditions, including reports from staffing agencies of rising wages and difficulty filling positions.

Even so, it said, "As in the past four Beige Books, wage growth was characterized generally as modest."

In addition, there was only "slight price growth" reported, as three districts saw modest prices increases, while in the others the rise was described as slight or limited.

Residential real-estate activity improved nationwide, with home construction and prices up in most districts. However, the declining supply of homes for sale in most areas is said to be restraining sales.

The energy sector continued to improve, albeit slowly, in most areas, with four districts reporting slight increases in oil and gas drilling.

Contacts in Dallas continue to expect a gradual pickup in activity next year, but the outlook has moderated.

source: news.abs-cbn.com

Asia stocks edge up on US growth data cues; dollar steady

Asian stocks edged higher on Wednesday reflecting upbeat U.S. growth news while oil steadied after a sharp drop overnight as OPEC struggled to agree on a glut-draining production cut.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 percent in early trades. It is poised to post a second consecutive monthly loss.

Early action in Asian stocks was just as guarded with Australia down 0.16 percent, the Nikkei flat and South Korea up 0.2 percent.

In currency markets, the dollar consolidated recent gains against a trade-weighted basket of its peers with investors looking to buy on dips after strong data.

The U.S. economy grew faster than initially thought in the third quarter, notching its best performance in two years.

The relatively upbeat data pushed major U.S. stock indices higher with major benchmarks closing between 0.2 to 0.6 percent up. Stock futures edged higher in Asia.

Oil slumped by roughly 4 percent on Tuesday before bouncing somewhat as most analysts concluded the Organization of Petroleum Exporting Countries would cobble together a deal at its meeting in Vienna on Wednesday to cut production to some extent. The meeting starts at 1000 GMT (5.00 a.m. ET).

Brent futures were flat around $46.38 per barrel while U.S. crude gained 0.3 percent to $45.39 per barrel.

source: news.abs-cbn.com

US Black Friday: more shoppers but less spent per head

WASHINGTON - The American shopping orgy known as Black Friday lured more buyers this year but they spent less per person thanks to great bargains, an industry group said Sunday.

More than 154 million people made purchases during the four-day retail extravaganza that began Thursday on Thanksgiving, compared to 151 million last year, the National Retail Federation said.

Shoppers spent an average of $289.19, compared to $299.60 in 2015.

Sales over the Thanksgiving holiday, which extends into so-called Cyber Monday, are a good indicator of the health of US consumer spending.

Online sales dominated. A total of 44 percent of those who took part in the NRF survey said they had bought via the internet while 40 percent went to a brick-and-mortar store.

"It was a strong weekend for retailers, but an even better weekend for consumers, who took advantage of some really incredible deals," NRF president Matthew Shay said.

The most popular day to shop online was Black Friday itself, the day after the Thanksgiving holiday. Of those who purchased online over the four-day period, 74 percent did so on Friday, up 1.3 percent from last year.

And of the people who went to actual stores over this shopping period, 75 percent did so on Black Friday, up 3.4 percent from last year, the NRF said.

Millennials, aged 18-34, drove the increase in shopping, with eight out of ten buying something over the long weekend.

Around 56 percent of smartphone owners and 53 percent of tablet owners used these devices to assist with their shopping.

The study was carried out by Prosper Insights & Analytics with a sample of 4,330 people on November 25-26 and has a margin of error of 1.5 percentage points.

source: news.abs-cbn.com

Strong US retail sales reinforce December interest rate hike

WASHINGTON - US retail sales rose more than expected in October as households bought motor vehicles and a range of other goods, pointing to sustained economic strength that could allow the Federal Reserve to raise interest rates next month.

The Commerce Department said on Tuesday retail sales increased 0.8 percent last month, also boosted by demand for building materials, likely as households cleaned up and made repairs in the wake of Hurricane Matthew.

"This is just the kind of data the Fed doves need to see to convince them to hike rates in December. The economy is doing pretty well, this data is bullish for the economic outlook in the months ahead," said Chris Rupkey, chief economist at MUFG Union Bank in New York.

Adding to the report's strong tone, September retail sales were revised up to show a 1.0 percent increase instead of the previously reported 0.6 percent rise. The combined September and October sales gain was the largest two-month rise since early 2014. Sales were up 4.3 percent from a year ago.

Excluding automobiles, gasoline, building materials and food services, retail sales jumped 0.8 percent last month after an upwardly revised 0.3 percent gain in September.

These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have risen 0.1 percent in September.

Economists had forecast overall retail sales increasing 0.6 percent and core sales advancing 0.3 percent last month.

The strong sales report is a good omen heading into the holiday shopping season. Last week, Macy's and Kohl's Corp. expressed optimism about the holiday shopping season, despite reporting a decline in sales in the third quarter.

US stocks were trading mostly higher, while the dollar was little changed against a basket of currencies. US Treasuries rose after declining for five straight trading sessions.

SUSTAINED STRENGTH

September's upward revision to core retail sales suggests that the economy's 2.9 percent annualized growth rate in the third quarter could be raised when the government publishes its second GDP estimate later this month.

Coming on the heels of data this month showing a rapidly tightening labor market and signs of a turnaround in the manufacturing sector, the upbeat retail sales report implied a pickup in economic activity early in the fourth quarter.

The Atlanta Fed lifted its fourth-quarter GDP growth estimate by two-tenths of a percentage point to a 3.3 percent rate after Tuesday's data.

The report also reinforced views that the Fed will raise interest rates at its Dec. 13-14 policy meeting.

Rate hike prospects have also been boosted by a rally in US stocks in the wake of the last week's election of Republican candidate Donald Trump as the next president, despite a lot of hand-wringing over his proposed policies.

The Fed this month left interest rates unchanged but said its monetary policy-setting committee "judges that the case for an increase in the federal funds rate has continued to strengthen." The US central bank raised its benchmark overnight interest rate last December and has held it steady since, largely because of concerns over low inflation.

But inflation is creeping higher. A separate report on Tuesday from the Labor Department showed import prices increased 0.5 percent in October after gaining 0.2 percent in September.

In the 12 months through October, import prices fell 0.2 percent, the smallest decrease since July 2014, after declining 1.0 percent in September.

Retail sales last month were driven by a 1.1 percent increase in auto sales and a 1.5 percent surge in receipts at online retailers. Online retailers like Amazon have been grabbing market share from traditional department chains like Macy's and Kohl's.

Sales at building material stores increased 1.1 percent following a 1.8 percent rise in September. The strength in this category was reflected in Home Depot's robust third-quarter profit and sales reported on Tuesday.

Receipts at sporting goods and hobby stores rose 1.3 percent. Sales at restaurants and bars, however, fell 0.7 percent, likely as the stormy weather kept people at home.

Households also spent more on clothing, groceries and grooming last month, but cut back on furniture. Receipts at service stations advanced 2.2 percent on rising gasoline prices.

"As uncertainty over the election outcome remains elevated, October's retail sales performance provides some comfort that the primary driver of US GDP growth remains on solid footing," said Sam Bullard, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.

source: www.abs-cbnnews.com

Trump victory shocks global firms reliant on open trade

HONG KONG/SHANGHAI - Donald Trump's victory in the U.S. election sent shockwaves through industries that rely on open trade, from airlines to cars and IT outsourcing, although shares of some companies rebounded in afternoon trading.

Throughout his presidential campaign, Trump has vowed to revive the U.S. economy by slashing taxes, preventing companies from making products overseas, renegotiating trade accords and imposing tariffs on imports from countries like China.

"This is part of a much broader problem that we've seen in the world, in which countries are turning inwards and reacting against globalization and open borders," said aerospace analyst Richard Aboulafia, vice president of Virginia-based Teal Group.

In Asia, shares in airlines with significant exposure to global trade, such as cargo giant Korean Airlines (003490.KS), fell as much as 5 percent as Trump closed in on the White House. Air China's (0753.HK) Hong Kong-listed shares tumbled to their lowest level since June, and automakers like Toyota (7203.T), for whom the United States is a top market, fell 6.5 percent.

Many executives remain unsure what Trump's protectionist rhetoric will mean in practice.

Shares of the three largest U.S. airlines - American (AAL.O), Delta (DAL.N) and United (UAL.N) - rose more than 1 percent in afternoon trade.

"We would think they would be down today, but I’m thinking that it’s a play on more economic growth" from new policies, said Jim Corridore, analyst at CFRA Research. Protectionism "would be a longer term (outcome) that would hang over the industry but it's going to take a long time to get to that point."

Investors at a major Airline Economics finance gathering in Hong Kong last week expressed alarm at a surge in unconventional politics from Britain to Washington and the Philippines - a trend that many expect will leave its mark regardless of how it translates into real policies.

That comes as an industry that depends entirely on the flow of goods and people faces doubts over its own economic cycle.

POPULIST POLITICIANS
"We have seen a large section of the population that has not benefited in the past decade and we are seeing support for populist politicians with simple answers," Brian Pearce, chief economist of the International Air Transport Association told Reuters ahead of the election.

"Unfortunately, a lot of those answers are for protectionist policy solutions and air transport flourishes with open borders, so that is quite a dangerous development."

International trips make up 64 percent of global air traffic, according to IATA.

Executives at U.S. auto companies said they were concerned about Trump’s stance on free trade, especially his tough talk on the North American Free Trade Agreement. They all have production sites in Mexico.

But industry executives and analysts said aviation had a history of riding out economic and political shocks. On average, plane makers insist, air traffic doubles every 15 years.

"If there are brakes on trade, there could be some impact on international travel. But you have seen more or less 5 percent annual growth in traffic for decades," said veteran U.S. aerospace consultant Jerrold Lundquist, managing director of The Lundquist Group.

And the defense industry could benefit, as a Trump administration spends more on the military and encourages even allies to shoulder more of the security cost. Defence stocks, including listed land mine manufacturer Ishikawa Seisaku (6208.T), jumped.

REALITY BITES?

After a bitter election campaign, trade experts said it remained unclear how Trump's statements in favor of protectionist trade measures and tough immigration controls would translate into policy.

"The honest answer is that no one knows; even Trump himself doesn't know," said Bertrand Grabowski, a managing director at Germany's DVB Bank which specializes in financing trade.

"He campaigned not on ideas but on anger and frustration."

Tighter rules could impact Indian IT services firms supporting companies in the United States. Shares in companies like Infosys (INFY.NS) and Tata Consultancy Services (TCS.NS) were sharply down as Trump closed in on the White House.

ALSO IN AEROSPACE & DEFENSE

But Narayana Murthy, co-founder of Infosys and a key figure in India's outsourcing industry, said realism would prevail.

"They may fine tune it here and there, but let’s remember that he is the president of 300 million U.S. people and I’m sure he’ll do what is in the best interest of America. And what is in the best interest of America is for its corporations to succeed, for its corporations to create more jobs," he said.

For now, acquisitions at least will cool off, especially Chinese purchases of U.S. companies, as a Trump presidency pushes up regulatory scrutiny.

"If he now requires a certain percentage of manufacturing parts to be made in America, it's going to be protectionist... and that increases the risk and cost of doing business," said Stephanie Yuen, an M&A lawyer in Singapore.

"He's not just building a Mexican wall, he builds an economic wall around America."

And for key sectors, competition will heat up. Europe's Airbus and U.S. rival Boeing (BA.N) in the $100 billion annual jet market could become even fiercer with more government lobbying support, adding stridency to efforts to compete for jobs.

Trump's victory may also raise questions over plans to sell over 200 Western airplanes to Iran under a deal to lift sanctions that the president-elect has severely criticized.

Airbus (AIR.PA) is seen close to finalizing a tranche of 17 jets, but needs U.S. approval to complete plans for another 80 or so because the jets are built with many U.S. parts.

Boeing has U.S. approval to finalize a deal for some 100 jets but Middle East sources say progress has been slow so far.

"It further reduces the prospect of the deals going ahead," Aboulafia said.

(Additional reporting by Adam Jourdan in SHANGHAI, Norihiko Shirouzu in TOKYO, Euan Rocha in MUMBAI, Anshuman Daga in SINGAPORE, and Jeffrey Dastin in NEW YORK; Editing by Bill Tarrant and Bill Trott)

source: www.abs-cbnnews.com

Trump would wreck US economy: telco tycoon

Mexican telecommunications tycoon Carlos Slim warned on Friday that Donald Trump would destroy the US economy if he wins next week's election.

"As we say in Mexico, being a drunk is different from being a bartender," Slim told reporters at the Montevideo Circle, a meeting of business leaders and politicians.

Slim said a victory on Tuesday by the Republican candidate was "not very likely."

But if he defeats Democrat Hillary Clinton, Trump's administration could impose a 35 percent import tariff that would dramatically raise prices in the United States, he said.

"It would destroy the US economy with brutal inflation," said the world's fourth richest man, according to Forbes magazine's latest ranking.

Trump lashed out at Slim last month after The New York Times published claims from women accusing the real estate baron of sexual misconduct. Slim is the newspaper's largest shareholder.

Slim declined to comment on that controversy, but his son-in-law and spokesman, Arturo Elias, had responded at the time that the Mexican billionaire has never met Trump and "is not interested in his personal life in the slightest."

Trump has angered Mexicans for vowing to make their government pay for a giant border wall and pledging to deport millions of migrants, whom he called rapists and drug runners.

source: www.abs-cbnnews.com

Clinton attacks Trump on economy to launch presidential debate

HEMPSTEAD, New York - Democrat Hillary Clinton went on the attack against Republican Donald Trump at the start of the first one-on-one US presidential debate on Monday, accusing him of pushing economic policy that favored the rich at the expense of the middle class.

The two candidates greeted each other with a handshake and a smile to begin the highly anticipated debate.

As the debate opened, they put forward competing visions for the US economy.

Clinton, a former secretary of state and the first woman to win the presidential nomination of a major US political party, said Trump's tax policies were akin to "Trumped-up trickle-down" economics.

"The kind of plan that Donald has put forth would be trickle-down economics all over again. And in fact it would be the most extreme version, the biggest tax cuts for the top percents of the people in this country that we've ever had. I call it Trumped-up trickle-down, because that's exactly what it would be. That's not how we grow the economy," she said.

Trump, a real estate tycoon and former reality television star who has never held elective office, criticized Clinton for her trade policies.

"We have to stop our jobs from being stolen from us," he said.

Clinton, 68, wore a red pantsuit, and Trump, 70, wore a dark suit and a blue tie to the encounter that could shift the course of the tight 2016 race for the White House.

Opinion polls show the two candidates in a very tight race, with the latest Reuters/Ipsos polling showing Clinton ahead by 4 percentage points, with 41 percent of likely voters.

The 90-minute debate could sway undecided and independent voters who have yet to make up their minds as well as voters from both parties who have tuned out the election until now.

A second Reuters/Ipsos poll released on Monday showed half of America's likely voters would rely on the debates to help them make their choice. More than half, 61 percent, were hoping for a civil debate and were not interested in the bitterness shown on the campaign trail.

source: www.abs-cbnnews.com

Clinton hits Trump at core: his business record

WASHINGTON - Hillary Clinton on Tuesday targeted her White House rival Donald Trump's very rationale for being a competent president, painting the provocative billionaire as a "dangerous" and manipulative businessman who would sink the US economy.

The Democratic flagbearer's comprehensive condemnation of Trump's business dealings came as the presumptive Republican nominee revealed unprecedented financial deficits heading into his general election push, the latest of several setbacks and self-inflicted wounds that have plunged his campaign into disarray.

Clinton piled on in her speech in Ohio, an important swing state, where she argued that Trump's lack of a plan to bring back manufacturing and other jobs could yank the nation back into recession.

"We can't let him bankrupt America like we are one of his failed casinos," she thundered in Columbus. "We can't let him roll the dice with our children's futures."

By laying into Trump's corporate empire, Clinton aimed to disarm her rival's potent claim that he can translate his business acumen into Oval Office success.

"He's written a lot of books about business. They all seem to end at chapter 11," she quipped, referring to the US legal code that addresses bankruptcy and reorganization.

She claimed Trump had refused to pay some workers their due and had his own products manufactured overseas -- moves she argued punished hard-working Americans.

He also "made a fortune filing bankruptcies and stiffing his creditors" in the process, leaving hundreds out of people out of work, Clinton said.

"In America, we don't begrudge people being successful, but we know they shouldn't do it by destroying other people's dreams."

Despite his long track record as a businessman, "it turns out he's dangerous there, too," Clinton said.

"Just like he shouldn't have his finger on the button," she added, referring to the US nuclear arsenal, "he shouldn't have his hands on our economy."

"Donald Trump's ideas about the economy and the world will cause millions of Americans to lose their jobs," Clinton said.

SEEKING A REBOOT

Trump returned fire as Clinton spoke, arguing that she "surged" the trade deficit with China by 40 percent while serving as America's top diplomat, a move he said cost Americans "millions of jobs."

In a bid to go on offense, Trump announced he would deliver a speech Wednesday addressing "the failed policies and bad judgment of crooked Hillary Clinton."

But the latest news cycle unquestionably has been unkind to the real estate tycoon.

He fired campaign manager Corey Lewandowski on Monday, seeking a reboot as he prepares to battle with Clinton whose campaign is well ahead of Trump's in terms of finances and organization.

Trump has been hammered for making controversial statements after the Orlando massacre, including about Muslims, and for saying it would have been a "beautiful sight" if more people at the Florida club -- where drinks flowed -- were armed in order to shoot back at the attacker.

His numbers have slid in several polls, and Republican leaders have continued to express ambivalence about their presumptive nominee.

A 'DIFFERENT' CAMPAIGN
The latest clash comes amid revelations that Trump's campaign war chest lags woefully behind Clinton's.

Trump has just $1.3 million in cash on hand, according to reports filed Monday with the Federal Election Commission.

Clinton's campaign by contrast had $42 million as of May 31, its report showed.

Trump insisted he could ply his own campaign with "unlimited" funds.

"If need be, there could be unlimited 'cash on hand' as I would put up my own money, as I have already done through the primaries, spending over $50 million," he said in a statement.

He also said his campaign was prepared to embrace a new tone as it geared for battle with Clinton.

"I think it's time now for a different kind of a campaign" than the lean operation that helped win the primary race, Trump told Fox News late Monday as he justified Lewandowski's departure.

Trump also brushed off his difficulty in earning Republican leadership support, telling NBC he might not even need their blessing.

"I may be better winning it the opposite way than the more traditional way," he said.

But a revolt of sorts appeared to be brewing at next month's Republican National Convention.

As many as 400 of the party's 2,472 delegates who formally elect the Republican nominee have expressed support for a movement to stop Trump, according to The Washington Post.

Trump meanwhile met Tuesday with about 1,000 evangelical Christians in an effort to win over the crucial voting bloc.

"He came across as reasonable, not reckless," Catholic Vote president Brian Burch was quoted by Time magazine as saying.

Trump's campaign also announced an evangelical executive advisory board, featuring prominent conservative religious figures including psychologist and author James Dobson, who has courted controversy over his strong position against gays.

source: www.abs-cbnnews.com

Markets to stay jittery amid deluge of economic data

Expect a lot of 'short-term' noise to keep investors on edge and on the sidelines this week, as focus shifts to economic data out of the US, China, and Japan.

On Tuesday, Japan's Abenomics gets another pulse check, as household spending, employment and retail sales data are released, industrial production numbers are out on Wednesday. Friday will be a big day --- the Bank of Japan releases its business sentiment survey -- the Tankan Survey, China manufacturing and services index are also out, while the US releases non-farm payrolls for March. A Reuters poll shows payrolls are expected to have increased by 200,000 jobs in March, below February's 242,000 gain.

Angel Pacis, First Vice President & Trust Officer at East West Bank says the 'markets are living on day-to-day data' when it comes to the actual policy the Fed will be taking going forward.

"They call it the 'sweet spot' in terms of data, good enough to signal the US economy is continuing its current track, but not strong enough to encourage more aggressive rate hike stance from the Fed. That's what the market is looking for to continue its upward trajectory."

CONGLOMERATE PLAY : ALPHA PLAY

In the meantime, Pacis is placing her bets on conglomerates this year, which she says will continue to benefit from strong economic growth and domestic dependence, as well as incentives for infrastructure play.

"Ayala Corp is into infrastructure, it's a good proxy for the Philippine economy, plus it's also in sectors that are expected to grow faster like education and power. While we like Metro Pacific because of valuations."

SM investments is also a stock pick.

These companies are expected to outpace expected average growth of 10% this year.

East West bank's year-end forecast is at 7400.

RCBC BACK IN SPOTLIGHT

Pacis believes while sentiment on RCBC will continue to take a hit, triggering retail selling, she says overall -- the bank won't see any big negative impact on bottomline. She adds, banks in general are in a stable position.

"This is what I call noise. The Philippine Banking Sector is in a very stable position and any selldown which brings it to fair value should be an opportunity to pick up stocks."

The Senate resumes its third hearing on the alleged $81-M Money Laundering case, on Tuesday, March 29.

source: www.abs-cbnnews.com