The cash rate and other
capital market interest rates then feed through to the whole structure of deposit and lending rates.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft
market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and
markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange
rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit
ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional
capital needs or for payment of
interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher
interest payments should
interest rates increase substantially; 27) the effectiveness of any
interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange
rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
DoubleLine
Capital CEO Jeffrey Gundlach speaks to CNBC's Scott Wapner on the sidelines of the Sohn Conference about his best new investment ideas, his outlook for
markets and the economy, as well as the rising
interest rate environment.
«If we were to try to control the level of our exchange
rate, we would have to start to close what is one of the most open and effective
capital markets, money
markets, in the world, in order to be successful,» Carney told a parliamentary committee this month, also warning «there would undoubtedly be a suspicion» that we were «trying to gain a competitive advantage» if we tried to control our
interest rate.
According to Tom Porcelli, chief U.S. economist at RBC
Capital Markets,
market prices imply the odds that
interest rates will be higher at the end of the year are less than 50 %.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and
markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial
market conditions, fluctuations in commodity prices,
interest rates and foreign currency exchange
rates, levels of end
market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and
capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit
market conditions and our
capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including
market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general
market conditions, global trade policies and currency exchange
rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the
market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
«If
interest rates continue to accelerate to the upside, what scares the
market is if they go up fast,» said Robert Phipps, a director at Per Stirling
Capital Management in Austin, Texas
While this deal has been discussed for several years, Kevin Manning, an analyst at BMO
Capital Markets, says the purchase was made now because of worries over rising
interest rates.
Ruth Gregory, a UK economist at
Capital Economics, said: «February's labour
market figures provide us with optimism that sustained rises in real wages are now in prospect and should seal the deal on another
interest rate hike in May.»
That's manageable as long as
interest rates and unemployment remain low, says Doug Porter, deputy chief economist at BMO
Capital Markets.
Low
interest rates and depressed
capital markets activity are requiring banks to tightly manage expenses, and have forced some firms out of the industry.
«If you think the ship is about to sail, this is the time to get on,» said Aaron Kohli,
interest rates strategist at BMO
Capital Markets.
Despite a downward revision in
interest rate projections, Ontario's projected
rates are still significantly above that of their federal counterparts, and vastly exceed that of some private sector forecasters, including BMO
Capital Markets Economics.
a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise
capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue
market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon
interest rate, maturity, call features, etc..)
Plus a majority of the
capital is provided by the secondary
market on 30 year fixed low
interest rate debt.
Capital One's account is near the top of the list for the best money
market interest rate at 1.60 % APY.
«Higher
interest rates compete with the equity
markets for
capital,» which could slow down
market growth.
Indeed, in a classic paper written in the early 1960s, Mundell (Mundell, 1963) showed how, in a world of complete asset substitutability and perfect
capital mobility, real
interest rates would be largely determined by international
market forces with the exchange
rate moving in response to changes in domestic monetary policy to provide most of the desired accommodation or tightening.
Those policies will cause inflation and U.S.
interest rates to rise, which in turn will pull
capital out of emerging
markets.»
To the extent that the factors affecting
capital flows act to raise asset prices, lower
interest rates and reduce risk premiums, it is harder for the
markets to assess how much of the currently very favorable conditions are likely to reflect fundamentals and prove more durable.
High
interest rates collapsed the stock and bond
markets, leading to
capital outflows and lower foreign - exchange
rates.
Despite the mainland's
capital controls, its bond
market joined the global
market ructions on Thursday after the U.S. Federal Reserve surprised by saying it expected to hike
interest rates three times next year, rather than the previously forecast two hikes.
Capital markets and banks stocks, in particular, have benefited from strong loan growth amid rising
interest rates and positive stock returns.
Another unusual aspect of current global
interest rates is that long - term
rates, which are set by the demand for and supply of funds in
capital markets, have remained quite low in the face of rising official
interest rates.
The ruble's exchange
rate has fallen as more rubles are thrown onto currency
markets to obtain the dollars needed to pay
interest and debt service on foreign loans (and to sustain
capital flight in the absence of controls).
It is causing
capital flows out of foreign
markets causing
interest rates to rise.
However, by September 2013, the IMF had done a 360 - degree turn and had the U.S leading a global recovery (albeit not very strongly) and the emerging
market economies struggling with rising
interest rates,
capital flight and falling exchange
rates, resulting from the possibility of a tapering of Federal Reserve Board monetary stimulus.
Examples of forward - looking statements include, but are not limited to, statements we make regarding the Company's plans, assumptions, expectations, beliefs and objectives with respect to store openings and closings; product introductions; sales; sales growth; sales trends; store traffic; retail prices; gross margin; operating margin; expenses;
interest and other expenses, net; effective income tax
rate; net earnings and net earnings per share; share count; inventories;
capital expenditures; cash flow; liquidity; currency translation; growth opportunities; litigation outcomes and recovery related thereto; the collectability of amounts due under financing arrangements with diamond mining and exploration companies; and certain ongoing or planned product,
marketing, retail, manufacturing, information systems development, upgrades and replacement, and other operational and strategic initiatives.
Given the absence of a public trading
market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and
capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing
market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and
interest rates, and the general economic outlook.
When and if
interest rates begin to rise, corporates may have the incentive to tilt their
capital structure back to equity, or at least to reduce stock repurchases, which could raise further questions about stock
market valuations.»
James Murad, a director in the finance and
capital advisory division at Eastern Consolidated, said the problem for a lot of NYC developers is that lenders (particularly traditional players with reasonable
interest rates) are also shying away from risk in this
market and often won't touch a stalled project saddled with debt.
In the case of fixed -
rate loans, there have been some more noticeable rises in
interest rates charged by banks, in line with rises in yields in
capital markets.
As with Fed funds, reverse repo
rates,
Interest on excess reserves, and LIBOR, the price of gold pings an important signal as to risk, the cost of
capital, the state of the financial
markets, and economic well - being in general.
Interest rates on new fixed -
rate loans have fallen over recent months, reflecting falls in yields in
capital markets in which these loans are funded (Graph 34).
Or the bond
market with its focus on balance sheets,
interest rates, revenues, and return of
capital — will be proven right.
Their cost of
capital is a function partly of low
interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond
market is so expensive.
But both the timing and the scale of
capital export from emerging
markets make it unlikely that it is the principal reason for the major recent declines in neutral real
interest rates.
And unlike during past runs in technology stocks, many of these companies have actual earnings and cash flows that can support reinvestment in their businesses, which in turn makes them less reliant on raising
capital in the
markets at a time when
interest rates are climbing.
It is generally believed by those unfamiliar with economic theory that credit expansion and an increase in the quantity of money in circulation are efficacious means for lowering the
rate of
interest permanently below the height it would attain on a non-manipulated
capital and loan
market.
That adds to a downside bias since 2013's «taper tantrum» that sparked
capital flows out of emerging
markets and into the U.S. as investors began to grasp that the post-financial crisis era of ultra-low U.S.
interest rates was drawing to a close.
With long - term
interest rates well below 2 per cent, the stock
market sky high and business able to write off investments immediately,
capital costs have never been lower.
The boom is, in essence, a response to today's extraordinarily low
interest rates, which have translated into abundant liquidity for corporations seeking to borrow cheaply in the
capital markets.
«If the central bank is intervening because there are huge
capital inflows, the domestic
interest rate in the
market will go up.
It's going to take higher
interest rates to bring pension
capital to the Treasury
market.
Toscano, a partner at Pacific
Capital Associates, said the only thing that might affect the housing
market in the near future are rising
interest rates.
Ndikumana and Boyce explain that, «If this
capital had been invested abroad and earned
interest at the going
market rates, the accumulated
capital loss for these countries over the 39 year period was $ 944 billion.
While Fayemi opted for a
capital market bond, with low
interest rate and a well structured repayment plans, Fayose opted for commercial bank loans with its huge
interest rate.
Such bonds function as an alternative to direct public financing of housing projects: Since
interest income on PABs is tax exempt, investors are willing to buy them at very low
interest rates, and this makes it relatively affordable for states, municipalities, and nonprofits to finance housing (and hospitals, infrastructure, and other public works) through the private
capital market.
I should take a quote from «Equities
Market Outlook in 2017» issued by Afrinvest reported in the media under the headline «Multiple Exchange Rates Stall Foreign Inflow into Nigerian Equities» in January 2017, «Our interactions with several foreign investors with interests in Nigeria suggest that a decision to stake any position in the Nigerian market will be a function of currency liquidity and a greater certainty on their ability to repatriate capital anytime they d
Market Outlook in 2017» issued by Afrinvest reported in the media under the headline «Multiple Exchange
Rates Stall Foreign Inflow into Nigerian Equities» in January 2017, «Our interactions with several foreign investors with
interests in Nigeria suggest that a decision to stake any position in the Nigerian
market will be a function of currency liquidity and a greater certainty on their ability to repatriate capital anytime they d
market will be a function of currency liquidity and a greater certainty on their ability to repatriate
capital anytime they divest.
As a result, we do not see significant foreign
capital flowing into Nigerian equities in the short to medium term as the discrepancy between the parallel and interbank
market rates continue to deter
interest in Nigeria»