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Why Google is missing out on the tech rally

New York (CNN Business)Google got rid of its “don’t be evil” motto last year. For the sake of investors, it may want to try out a new slogan: “Don’t be boring.” Why has Alphabet underperformed? Is Alphabet “old” tech or “new” tech? Revenue growth has slowed. Concerns about more tech regulation in Washington could also hurt its YouTube unit. Many of Alphabet’s non-core businesses continue to lose money, leading to worries that the company is a one-trick pony named Search. Its non-core businesses include its so-called Other Bets companies, which…

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The S&P 500 is on track for its best June since 1955

New York (CNN Business)With one day left, the month is shaping up to be the best June for the S&P 500 in more than 60 years. It’s been a roller coaster ride on the way there. The Nasdaq Composite (COMP) is also set to have its best month since January, and is up 6.9% so far this month. The Nasdaq is 20% higher in 2019. On Friday, the Dow opened higher buoyed by high hopes for progress on the trade front. The Dow (INDU) climbed 0.3%, or 82 points, at…

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United Technologies and Raytheon are merging in an aerospace mega-deal

New York (CNN Business)United Technologies and Raytheon are joining forces to create an aerospace and defense powerhouse. It is one of the biggest corporate mergers of 2019. UTC is an industrial conglomerate, and makes everything from jet engines to elevators. It owns the Pratt & Whitney engine maker as well as Collins Aerospace. Raytheon is rooted in defense, and produces missile defense systems and cybersecurity solutions. The companies supply the likes of Airbus and Boeing. The combined company will be named Raytheon Technologies Corporation, according to a statement from the…

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How the US-Iran oil standoff could hurt the economy

New York (CNN Business)The American economy is already absorbing a body blow from the deepening US-China trade war. A real war could be more than the decade-long economic expansion can handle. “Oil shocks have killed more US economic expansions over the last 40 years than any other single cause,” Nicholas Colas, co-founder of DataTrek Research, wrote in a note to clients. Besides long lines at gas stations, the Saudi oil embargo of 1973-1974 helped set off a jump in oil prices that crippled the economy. The Iranian Revolution of 1979…

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Benjamin Moore CEO is bullish on housing

(CNN)The housing market has done extremely well over the past few years thanks to low interest rates and steady job growth. Calkins said he’s not too concerned about the possibility that the economy will eventually cool off either. He said Benjamin Moore has held up well during most slowdowns — with the Great Recession being the obvious exception. “In 2008, we all paid a heavy toll,” Calkins said. “I hope we don’t see anything like that ever again.” Read more: https://www.cnn.com/2019/05/04/investing/benjamin-moore-ceo-housing/index.html

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How US sanctions on Venezuela are rippling through oil markets

New York (CNN Business)US sanctions on Venezuela’s national oil company have accelerated the unprecedented collapse of its oil output and set off a domino effect in the global energy market. Heavy crude is typically cheaper than light crude, but demand for it has become so intense that it’s suddenly trading at a premium to lighter barrels. US Gulf Coast refiners, led by Citgo, Chevron and Valero, blend heavy crude with lighter barrels found in US shale oilfields to churn out gasoline, diesel and jet fuel. Meanwhile, Venezuela’s government, which relies…

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Charlotte Russe files for bankruptcy and will close nearly 100 stores

New York (CNN Business)Charlotte Russe has filed for Chapter 11 bankruptcy and plans to close 94 stores, the company announced Monday. Poor sales and too much debt hurt the retailer. In 2009, private equity firm Advent International bought Charlotte Russe in a $380 million cash-for-stock deal. Last year, Charlotte Russe reached a deal to reduce its debt from $214 million to $90 million. Despite the deal, Charlotte Russe’s sales plunged from $928 million in 2017 to $795 million last year. Comparable store sales fell 11.7% during the third quarter of…

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China’s stock market had a terrible 2018. This year could be a lot better

Hong Kong (CNN Business)China’s beaten down stock market could be headed for a rebound. Chinese stocks would hold strong appeal “in a world where they agree a trade deal,” said Christopher Wood, an equity strategist at Hong Kong-based broker CLSA. He predicts the two governments will reach some kind of agreement by early March to prevent a return to their bruising trade war. “If China is smart, they will do a deal with Donald Trump,” Wood said, describing him as “the most friendly president Beijing is going to deal with,…

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Stocks jump after the US and China reach trade truce

Hong Kong (CNN Business)A ceasefire is better than an escalating trade war as far as investors are concerned. US President Donald Trump and his Chinese counterpart, Xi Jinping, agreed on Saturday to a temporary truce in the trade clash between the two countries. The US government will now hold off on raising tariffs on $200 billion worth of Chinese goods from 10% to 25% on January 1, according toa White House statement. In exchange, China said it was willing to purchase a “very substantial” amount of agriculture, energy and other…

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PG&E unlikely to go bankrupt because of wildfires

New York (CNN Business)Shares of California electric company PG&E soared Friday on new hopes that the company won’t have to go bankrupt if it is found to be liable for the massive Camp Fire in Northern California. But the stock was up nearly 40% Friday after the president of the California Public Utilities Commission (CPUC) suggested that the state would work with PG&E to ensure that it would not be permanently crippled by lawsuits. “An essential component of providing safe electrical service is the financial wherewithal to carry out safety…

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Dollar Debt Will Be Elusive to Turkey as U.S. Sanctions Bite

The summer holiday in the bond market may be a long one for Turkey. New dollar issuance, including government and corporate-sector bonds, has dried up, with no sales recorded since April, according to data compiled by Bloomberg. And with corporate-bond losses among the worst in emerging markets amid a plunge in the lira, the dollar-debt market may be shut for some time to come. Quiet Summer Turkish bond sales have dried up since April as uncertainties deterred issuers

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Researchers Argue Proposed EPA Changes Could Cause 80,000 More Deaths a Decade

Two Harvard social scientists, writing an opinion column in a prominent medical journal, have put forward “an extremely conservative estimate” that some 80,000 more Americans could die each decade if proposed changes at the U.S. Environmental Protection Agency are implemented. The JAMA Forum” feature of the , which allows researchers to offer individual perspectives on health and policy. The EPA dismissed the essay as rhetoric, not research, in a statement provided to Bloomberg News. “This is not a scientific article, it’s a political article. The science is clear, under President Trump greenhouse gas emissions are down, water infrastructure…

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The Hedge Fund Summer Reading List

It’s that time of year again: summer reading season. While for many that means books for the beach, some emerging-market fund managers are yearning for titles that shed light on buying opportunities in Asia as well as the human psychology behind investing decisions. Asha Mehta, who oversees emerging markets at Acadian Asset Management in Boston, said she’s eager to crack Evan Osnos’s "Easternization: Asia’s Rise and America’s Decline From Obama to Trump and Beyond," which looks at how the rising wealth of Asian nations is shifting the balance of power…

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