• TREASURIES-Yields fall as trade deal optimism ebbs

    * Yields lower as optimism on U.S. China trade deal fades * Fed seen likely to cut rates later this month * Brexit negotiations in focus By Karen Brettell NEW YORK, Oct 15 (Reuters) - U.S. Treasury yields edged lower on Tuesday as investors pared back expectations that the United States and China are close to reaching an agreement to end their trade war. Reports of a "Phase 1" trade deal between the United States and China last week encouraged risk taking and reduced demand for safe-haven debt, however the dearth of details around the agreement has since curbed this enthusiasm. U.S. Treasury Secretary Steven Mnuchin said on Monday that an additional round of tariffs on Chinese imports will likely be imposed if a trade deal with China is not reached, but added that he expected the agreement to go through.

  • Stocks Gain as Earnings Roll In; Treasuries Climb: Markets Wrap

    (Bloomberg) -- U.S. stocks opened higher as companies, including some of the biggest banks, release quarterly results. The pound strengthened as the European Union struck a more optimistic tone about the prospects of a Brexit deal.The three main U.S. equity indexes all rose alongside stocks in Europe, defying concern Beijing and Washington remain far apart in their quest for a trade deal. In earnings news:JPMorgan’s third-quarter results beat estimates.Goldman Sachs reported investment bank revenue and earnings per share that undershot estimates, but its equities sales and trading was a beat.BlackRock said there was a decline in fixed income inflows from the previous quarter as clients moved some money back into equities.Wells Fargo’s EPS missed estimates; Citigroup’s adjusted EPS and FICC trading revenue were both a beat.Johnson & Johnson raised its sales and earnings forecast for the year.“The earnings reports that will be particularly noteworthy are those from companies that are tied directly to the economic cycle,” saidMichael Geraghty, equity strategist at Cornerstone Capital Group. “They will provide an insight into how the U.S. consumer is doing and the U.S. consumer is the critical part of U.S. economy”Earlier Japan’s equity gauge had jumped as trading resumed after a long weekend during which President Donald Trump announced progress on an interim accord with China. Markets elsewhere in Asia were mixed. The Stoxx Europe 600 Index rose, with 18 of 19 sectors advancing.As the U.S. earnings season begins in earnest, investors are closely analyzing the reports, given the global backdrop of slowing growth and a host of unpredictable macro risks from the impeachment investigation into Trump and the trade war to Brexit and Turkey’s incursion into Syria.The International Monetary Fund made a fifth-straight cut to its 2019 global growth forecast, citing a broad deceleration across the world’s largest economies as trade tensions undermine the expansion.The pound strengthened as British negotiators submitted a revised set of Brexit plans to Brussels amid growing optimism that a deal could be struck this week. The euro slipped as data showed investor confidence in Germany’s economic outlook remains weak. Crude oil futures fluctuated and gold drifted.Meanwhile, the Turkish lira jumped and the country’s benchmark stock index rose after Trump imposed milder penalties over its military campaign in Syria than U.S. lawmakers had demanded.Here are some key events coming up this week:Wednesday brings a monetary policy decision in South Korea.U.S. retail sales are forecast to increase for a seventh straight month. Sales in the “control group” are also expected to rise. Consumer spending is carrying the weight of U.S. economic growth so the data will be monitored closely for any signs of slowing.China releases third-quarter GDP, September industrial production and retail sales data on Friday.Here are the main moves in market: To contact the reporters on this story: Todd White in Madrid at twhite2@bloomberg.net;Claire Ballentine in New York at cballentine@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Syria Kurds defend key town as Turkey ignores US

    Near Ras al-Ain (Syria) (AFP) - Kurdish fighters put up fierce resistance Tuesday to Turkish forces battling to seize a key town in northeastern Syria, as the violence forced international aid organisations to halt their activities. The United States slapped sanctions on its NATO ally in a bid to stop an assault that its own troop withdrawal triggered, but Ankara showed no sign of relenting. Syria's regime dispatched more troops to the northeast to contain Ankara's advance -- their most significant deployment in the Kurdish-controlled region since they started withdrawing from the area in 2012.

  • US banks report mixed earnings amid Fed rate shifts, trade uncertainty

    Large US banks reported mixed quarterly results on Tuesday, challenged by a shifting interest rate landscape and uncertainty about global trade but bolstered in some cases by strong consumer activity. The biggest US bank by assets, JPMorgan Chase, scored higher profits due to robust consumer lending even as Chief Executive Jamie Dimon offered a subdued outlook on the US economy, due in part to lingering worries about an economic slowdown due to the trade war. Earnings also rose at Citigroup, but profits fell sharply at Goldman Sachs amid a drop in key advisory services and at Wells Fargo, which was hit by higher legal costs as it continues to try to pivot from a series of scandals and regulatory issues.

  • IMF downgrades outlook for world economy, citing trade wars

    The International Monetary Fund is further downgrading its outlook for the world economy, predicting that growth this year will be the weakest since the 2008 financial crisis primarily because of widening global conflicts. The IMF's latest World Economic Outlook foresees a slight rebound in 2020 but warns of threats ranging from heightened political tensions in the Middle East to the threat that the United States and China will fail to prevent their trade war from escalating. The updated forecast released Tuesday was prepared for the fall meetings this week of the 189-nation IMF and its sister lending organization, the World Bank.

  • IMF sharply cuts Iran, Saudi growth forecasts

    In its World Economic Outlook, the global lender cut forecasts for almost all countries in the Middle East and North Africa (MENA) as the region is buffeted by biting sanctions on Iran and nail-biting anxiety over last month's attacks on Saudi oil facilities. The IMF said Iran's economy will contract by a massive 9.5 percent this year, its worst performance since 1984 when the Islamic republic was at war with neighbouring Iraq.

  • Africa’s Biggest Fund Manager Splits Roles to Cut CEO Power

    (Bloomberg) -- Africa’s biggest fund manager, which has been the subject of a governance probe, said it’s separating the roles of chief executive officer and chief investment officer after criticism that too much power was concentrated in the role of CEO.The CEO position, currently filled by Vuyani Hako in an acting capacity, will be advertised, with the recruitment process running in parallel with other executive posts “due to urgency,” Public Investment Corp. interim Chairman Reuel Khoza told lawmakers on Tuesday.“Our key priority over the next few months is to stabilize leadership and management by filling all the vacant positions at senior level,” Khoza said. “An organization that manages assets in excess of 2 trillion rand ($135 billion) cannot be managed by managers who are in acting positions.”The PIC, which oversees mainly pension funds of state workers, will also add or fill the roles of chief investment officer, chief risk officer, chief technology officer and chief operating officer. Fund investment panels have been abolished so that decisions go through the investment committee and the fund manager will aim to eliminate most fees paid to “middlemen” and will encourage whistle-blowing, he said.During the government probe witnesses alleged that questionable investment decisions were made and politicians attempted to influence others.Lindiwe Dlamini, the PIC’s head of legal services, updated lawmakers on measures the fund manager is taking to recover funds lost in some of the deals. They include:Filing a petition in Amsterdam to sue Steinhoff International Holdings NV, which has been embroiled in an accounting scandal and cost the PIC about 20 billion rand when the share price plunged. The litigation was suspended pending mediation, but will be reinstated if no acceptable settlement is reached.Having two of its former employees who were implicated in a looting spree at VBS Mutual Bank declared delinquent directors. A claim has also been filed with the bank’s liquidators to recover part of the PIC’s investment. Additional civil claims are under consideration.Filing a 4.3 billion rand civil claim against Ayo Technology Solutions Ltd. for misrepresenting its financial position when the PIC took a 29% stake in the company in 2017. The case is currently before the courts. The PIC is also taking steps to ensure that Ayo doesn’t move assets offshore.Taking legal action against Sekunjalo Investments Ltd., which was closely linked to the Ayo transaction. Consideration is also been given to applying for Sekunjalo’s liquidation. Ayo and Sekunjalo deny wrongdoing.(Updates with legal action in last four paragraphs)\--With assistance from Mike Cohen.To contact the reporters on this story: Paul Vecchiatto in Cape Town at pvecchiatto@bloomberg.net;Janice Kew in Johannesburg at jkew4@bloomberg.netTo contact the editors responsible for this story: Gordon Bell at gbell16@bloomberg.net, Antony SguazzinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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  • John Bolton decried Giuliani effort to pressure Ukraine as 'drug deal,' ex-aide Fiona Hill testifies, reports say

    Fiona Hill, an ex-White House adviser on Russia, reportedly testified that Bolton called Giuliani "a hand grenade who’s going to blow everybody up."

(ARA) - Being protective goes hand-in-hand with being a parent. From hand sanitizer gel to bike helmets to high-tech car seats, moms and dads will go to the ends of the earth to keep their little ones safe, sound and happy. But eventually, the scrapes and bruises no longer need a healing kiss, the training wheels come off the bike and the day comes when they're driving to school - not just high school, but college. You might be surprised, but there are actions you can take now that will protect them then - and even beyond.

It's not uncommon for new parents to consider adding life insurance coverage to the other policies that they carry, like car and health insurance. It can be a difficult thing to think about, but it's an added protection that will ensure that kids and the surviving spouse will be taken care of in the event that one parent dies. However, there are other ways in which a life insurance policy can make a difference for your child.

It might not be something that immediately comes to mind, but taking out a life insurance policy for your children could have lasting benefits for their financial future. However, doing so when they are still young could not only add up to cost savings over the long term, but better protection of their assets as they themselves get to an age at which they'll consider a family of their own.

In practical terms, giving your children the gift of a life insurance policy protects them from medical underwriting and high costs. You'll be establishing the coverage early enough that costs will be lower, particularly in the initial stage, and it can help to keep them manageable further down the road, depending on the plan.

Over the years, a life insurance policy can become an important part of your children's financial protection. And once they're at the right age to have the discussion about how to be financially responsible, it can be a helpful example, among other lessons like establishing good credit and smart spending habits.

Some insurance plans will allow your child to make changes as their life progresses, giving them the chance to increase coverage as they go through life's milestone events, like getting married, taking out a mortgage to buy a house and having children of their own. Premiums will naturally increase with added coverage, but the added costs associated with medical underwriting will be eliminated.

Looking out for your kids is an instinct that will never fade. As they grow, you'll help guide them on the right path in life, but at some point, they'll be off on their own. Giving them long-term protection when they're young will ensure that you're helping to watch out for them, long after they've left the nest.Life insurance for kids: Long term benefits come from early investment
Category: Business