A change in the federal funds rate doesn't directly impact
other market interest 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.
However, the bigger concern is that this is one more threat to your retirement nest egg, on top of low
interest rates, a low - growth economic outlook, uncertain stock
markets and potential government cuts to
other programs, such as health care and nursing - home subsidies.
Or, do the economic positives we hear each day about low
interest rates, low unemployment, low inflation, a healthy banking sector, rising real - estate prices, technology improvements, protection of resources, renewable energy and the rise of India — among
others — suggest that any downturn or crisis will merely be a short - term
market correction, with the kind of economic rebound we saw following the 2008 crisis?
Whether it is stricter regulations, negative
interest rates, or fragile confidence, banks and
other market participants are less than keen these days to hold large piles of risky assets.
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.
Some of that is for good reason — the eurozone's recovery is still extremely modest, China's growth is slowing (along with most
other emerging
markets) and investors are uncertain over the ability of the halfway - recovered US and UK economies to sustain higher central bank
interest rates.
«Additionally,» it says, «these
markets are continuing to draw
interest from a younger crowd, as the older millennial age group is viewing property listings at a
rate 1.2 times greater than the share of older millennials already living in the area, indicating strong
interest from
others wanting to move into these neighborhoods.»
Meanwhile, with a series of supportive economic factors at play «we expect the country's real estate
market to continue the strong showing it posted in the second half of 2013,» Soper said, noting among
other things favourable
interest rates and an improving U.S. economy fuelling demand for Canadian exports.
Overall, Treasury yields, which influence the
interest rates that borrowers pay on mortgages and
other loans, have been «remarkably stable» given the Fed could raise
rates against the backdrop of ongoing turmoil in global
markets, said Kathy Jones, chief fixed income strategist at Schwab.
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..)
Over the last several years, many Americans have been able to save on monthly payments on their mortgages and
other loans by refinancing to the low
interest rates available in the
market.
Some central banks, including the Bank of England and the European Central Bank, condition their forecasts on paths implied by financial
market prices;
others, including the Sveriges Riksbank and the Norges Bank, condition their forecasts on staff expectations of the future policy
interest rate.
A number of operational features were required to implement such an overnight reverse repo, or ON RRP, facility: It would need same - day settlement; 16 the operation would need to be run predictably, every day, and as late in the day as possible, to give lenders time to bargain with
other counterparties using the outside option of investing with the Federal Reserve; 17 an appropriate spread below IOR would be required to ensure that the facility neither induced large changes in the structure of money
markets nor lost the ability to support
interest rate control; 18 and the operations would need enough unused capacity that lenders could credibly propose to leave borrowers that did not offer an adequate
interest rate.19
Factors that could cause or contribute to actual results differing from our forward - looking statements include risks relating to: failure of DBRS to
rate the Notes at the anticipated
ratings levels, which is a closing condition, or at all; changes in the financial
markets, including changes in credit
markets,
interest rates, securitization
markets generally and our proposed securitization in particular; the willingness of investors to buy the Notes; adverse developments regarding OnDeck, its business or the online or broader marketplace lending industry generally, any of which could impact what credit
ratings, if any, are issued with respect to the Notes; the extended settlement cycle for the scheduled closing on April 17, 2018, which may exacerbate the foregoing risks; and
other risks, including those described in our Annual Report on Form 10 - K for the year ended December 31, 2017 and in
other documents that we file with the Securities and Exchange Commission from time to time which are or will be available on the Commission's website at www.sec.gov.
In theory, you could hold an individual bond to maturity and never lose any money even though the
market value of the bond may fluctuate based on changing
interest rates and
other factors (but you could still lose out to inflation over time).
In
other words, when
markets are volatile and there are worries about a recession,
interest rate exposure can help offset credit risk in a fixed income portfolio.
Instead, the Federal Reserve's new framework is premised on the payment of
interest on reserves and on ensuring sufficient competition in money
markets so that the
rate of
interest paid on reserves is passed through to
other money
market rates and thus to deposit
rates offered to households and firms.2
The potential counter weights that could cap the 10 - year yield would be a negative stock
market reaction that drives investors to bonds; lower
interest rates outside the U.S. that make the U.S. debt relatively more attractive, and good demand for longer - dated securities from insurers and
others.
Moderate
interest rates were associated with a whole range of subsequent returns over the following decade, and we know that those outcomes were 90 % correlated with the level of valuations at the beginning of those periods (on reliable measures such as
market cap / GDP, price / revenue, Tobin's Q, the margin - adjusted Shiller P / E, and others we've presented over time - see Ockham's Razor and the Market C
market cap / GDP, price / revenue, Tobin's Q, the margin - adjusted Shiller P / E, and
others we've presented over time - see Ockham's Razor and the
Market C
Market Cycle).
This was the lesson taught by William Petty in the 17th century and used by economists ever since: The
market price of land, a government bond or
other security is calculated by dividing its expected income stream by the going
rate of
interest — that is, «capitalizing» its rent (or any
other flow of income) into what a bank would lend.
Bonds are subject to
market,
interest -
rate, price, credit / default, call, liquidity, inflation, and
other risks.
View the report to see these and
other interesting findings — including a chart on how the B2C top performers (those who
rated their organizations most highly in terms of overall content
marketing success) stand apart from their peers.
Over the long - term,
market interest rates are driven by economic growth, inflation expectations and
other extraneous factors.
Interest rates on government debt, too, were set by the authorities, and there were «captive
market» arrangements under which banks and
other institutions were required to hold minimum amounts of government debt.
Performance of companies in the financials sector may be adversely impacted by many factors, including, among
others, government regulations, economic conditions, credit
rating downgrades, changes in
interest rates, and decreased liquidity in credit
markets.
On one side, the low
interest -
rate environment has been one of the ingredients for a strong stock
market and on the
other hand higher
rates will greatly benefit income seeking investors.
Investment volatility in these types of private real estate investments is limited to changes in net asset value and
interest rate unlike public REITs, which are also subject to stock
market volatility, which moves independently of the
other two factors.
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 these and
other developments, the Bank is now confident that Canadian financial
markets could also function in a negative
interest rate environment.
Bonds are subject to
market,
interest rate, price, credit / default, liquidity, inflation and
other risks.
With
interest rates in the United States at record lows and
rates in
other developed
markets increasingly in negative territory, investors may want to look beyond traditional
markets in search of yield.
That is one of the reasons that Yellen and
other Fed officials have been very aggressively pushing this slow - normalization story, because they don't want financial
markets to suddenly overestimate the Fed's reaction function and then start to bid up
interest rates very quickly.
These risks and uncertainties include food safety and food - borne illness concerns; litigation; unfavorable publicity; federal, state and local regulation of our business including health care reform, labor and insurance costs; technology failures; failure to execute a business continuity plan following a disaster; health concerns including virus outbreaks; the intensely competitive nature of the restaurant industry; factors impacting our ability to drive sales growth; the impact of indebtedness we incurred in the RARE acquisition; our plans to expand our newer brands like Bahama Breeze and Seasons 52; our ability to successfully integrate Eddie V's restaurant operations; a lack of suitable new restaurant locations; higher - than - anticipated costs to open, close or remodel restaurants; increased advertising and
marketing costs; a failure to develop and recruit effective leaders; the price and availability of key food products and utilities; shortages or interruptions in the delivery of food and
other products; volatility in the
market value of derivatives; general macroeconomic factors, including unemployment and
interest rates; disruptions in the financial
markets; risk of doing business with franchisees and vendors in foreign
markets; failure to protect our service marks or
other intellectual property; a possible impairment in the carrying value of our goodwill or
other intangible assets; a failure of our internal controls over financial reporting or changes in accounting standards; and
other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.
As the Fed tapers, many observers worry about the effect on the stock
market, while
others are worried about the risk of inflation or deflation and everybody is worried about the effect of higher
interest rates on economic growth and for the bond
market.
GOBankingRates is a personal finance and consumer
interest rate website owned by ConsumerTrack, Inc., an online
marketing company serving top - tier banks, credit unions and
other financial services organizations.
Unfortunately, since it is difficult to accurately forecast future
interest rates and all the
other factors that are changing simultaneously in financial
markets, this algorithm by itself will not make you instantly rich.
[1] The Framework discusses, ``... steps to raise the federal funds
rate and
other short - term
interest rates to more normal levels...» That language, however, is ambiguous as the federal funds
market has shrunk dramatically in a financial system awash in reserves.
«We are working to ensure that our financial institutions and
other market participants are prepared for the normalization of monetary policy and the return to a world of higher
interest rates,» Fischer said.
Other factors may have been a degree of illiquidity in the swap
market in the face of large increases in private sector bond issuance and rising
interest rates.
Compared to
other big banks, U.S. Bank offers higher - earning
interest rates, especially with its CD and money
market accounts.
Other interest rates in the economy are influenced by this
interest rate to varying degrees, so that the behaviour of borrowers and lenders in the financial
markets is affected by monetary policy (though not only by monetary policy).
Markets through arbitrage would then increase the
interest rates banks pay each
other to borrow reserves.
The close relationship between the cash
rate and
other money
market interest rates can be seen in Graph 2.
Selling gold short has therefore been an alternative to the «yen - carry» trade which saw
market participants fund investments in various
markets by borrowing yen (at almost zero cost due to the low
interest rates in Japan) and selling it for
other currencies, mostly US dollars.
«There's been a lot of focus on U.S.
interest rates, but in the
other main
markets, it's been pretty stable, you haven't had the big
rate changes,» he said in an interview in Oslo following the presentation of the fund's first - quarter report on Friday.
«The
market as a whole is quite high on a historic basis...
interest rates are so low that there's no real competition for the money
other than art and real estate,» Robertson said.
We'd suggest visiting our banking center to compare hundreds of high - yield savings accounts or reviewing some of our
other picks for the best high - yield savings accounts below, especially if a
market - leading
interest rate and / or a cash bonus is a must - have.
All in all, the Fed continues to expect inflation to rise gradually toward 2 % over the medium term as the labor
market improves further and the transitory effects of energy price declines and
other factors dissipate, but the pace for hikes in
interest rates could well be moderate, as the Fed has been indicating.
As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for
market losses, particularly given that the current bull
market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising
interest rate pressures, an extended period of internal divergence as measured by breadth and
other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.