You need a spreadsheet to predict the net effect on bond
prices of both rate changes and changes of the yield curve (or position on the yield curve).
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.
That doesn't leave Square a lot
of wiggle room if the credit card companies decide to raise interchange fees: «Because we generally charge our sellers a flat
rate,» higher swipe fees «could make our
pricing look less competitive, lead us to
change our
pricing model, or adversely affect our margins,» the company said in its prospectus.
The U.S. - based streaming video service is one
of the rare companies that isn't
changing prices to account for exchange
rates
But recent market turmoil reminded the world that share
prices don't always go up, as rising interest
rates, sweeping technological
change, and the possibility
of a trade war stoked anxiety on Main Street and Wall Street.
Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results
of current and future exploration activities; the actual results
of reclamation activities; conclusions
of economic evaluations; meeting various expected cost estimates;
changes in project parameters and / or economic assessments as plans continue to be refined; future
prices of metals; possible variations
of mineral grade or recovery
rates; the risk that actual costs may exceed estimated costs; failure
of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks
of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion
of development or construction activities, as well as those factors discussed in the section entitled «Risk Factors» in the Company's Annual Information Form for the year ended December 31, 2017 dated March 15, 2018.
the impact
of investment (including
changes in interest
rates), economic (including inflation, recent
changes in tax law, rapid
changes in commodity
prices and fluctuations in foreign currency exchange
rates) and underwriting market conditions;
Gordon is curious about an untested policy called «
price - level targeting,» which would refocus monetary policy on achieving an absolute increase in
prices over time, rather than the current emphasis on the
rate of change.
The 30 - day Fed Fund futures can be used as a guide to predict when the Fed might increase interest
rates since the
prices are an expression
of trader's views on the likelihood
of changes in U.S. monetary policy.
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.
Consumer
price index (2000 = 100) Central Bank
rates (various sources other than OECD as
of mid-July 2007) Purchasing power parities, %
change
Factors that will have an impact on credit quality
of companies include domestic consumption trends, exports, commodity
price risks, sensitivity to
changes in interest
rates, working capital risk, capital expenditure and sensitivity to foreign exchange volatility.
Bell points out reducing insurance
rates won't overheat the housing market since it doesn't
change any
of the other eligibility criteria; it would simply lower the
price.
These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may increase the amount
of discount required on Gilead's products; an increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability
of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market share and
price erosion caused by the introduction
of generic versions
of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect
of lowering
prices or reducing the number
of insured patients; the possibility
of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels
of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits
of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages
of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development
of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to
changes in its stock
price, corporate or other market conditions; fluctuations in the foreign exchange
rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
These risks include, in no particular order, the following: the trends toward more high - definition, on - demand and anytime, anywhere video will not continue to develop at its current pace or will expire; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost
of revenue or operating expenses may exceed our expectations; the mix
of products and services sold in various geographies and the effect it has on gross margins; delays or decreases in capital spending in the cable, satellite, telco, broadcast and media industries; customer concentration and consolidation; the impact
of general economic conditions on our sales and operations; our ability to develop new and enhanced products in a timely manner and market acceptance
of our new or existing products; losses
of one or more key customers; risks associated with our international operations; exchange
rate fluctuations
of the currencies in which we conduct business; risks associated with our CableOS ™ and VOS ™ product solutions; dependence on market acceptance
of various types
of broadband services, on the adoption
of new broadband technologies and on broadband industry trends; inventory management; the lack
of timely availability
of parts or raw materials necessary to produce our products; the impact
of increases in the
prices of raw materials and oil; the effect
of competition, on both revenue and gross margins; difficulties associated with rapid technological
changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the effect on our business
of natural disasters.
If interest
rates rise, market
prices of existing bonds will typically decline, despite the lack
of change in both the coupon
rate and maturity.
Commentary: «Revenues were up 8.3 % for the third quarter versus the prior - year period, due primarily to higher commodity
prices impacting the Company's supply chain revenues, higher same store sales in both domestic and international stores, store count growth in international markets and the positive impact
of changes in foreign currency exchange
rates.»
Actual results could differ materially from those expressed in or implied by the forward - looking statements contained in this release because
of a variety
of factors, including conditions to, or
changes in the timing
of, proposed real estate and other transactions, prevailing interest
rates and non-recurring charges, store closings, competitive pressures from specialty stores, general merchandise stores, off -
price and discount stores, manufacturers» outlets, the Internet, mail - order catalogs and television shopping and general consumer spending levels, including the impact
of the availability and level
of consumer debt, the effect
of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.
After all, when a central bank influences the cost
of financing through
changes in the policy interest
rate, its actions affect the economy by
changing asset
prices, encouraging or discouraging risk taking, and influencing credit flows.
Hilton CEO Christopher Nassetta said during the company's fourth - quarter 2015 earnings call that even though «customers hated it,» the pilot gave the company a better idea
of what future
changes it could explore, including introducing flexible and inflexible
rates at different
price points, similar to airlines.
Klitgaard and Weir note that macroeconomic models — which often are based on interest
rates,
prices, and GDP — can help explain exchange
rate changes over long horizons, but do a poor job
of tracking daily, weekly, or monthly
changes.
Duration is a measure that helps estimate the amount the
price of a bond will rise or fall in response to
changes in interest
rates.
So here's the thumb rule: For every 1 %
change in interest
rates, the
price of the bond will decline by (approximately) its duration, in percent.
Duration, the most commonly used measure
of bond risk, quantifies the effect
of changes in interest
rates on the
price of a bond or bond portfolio.
Factors that could cause actual results to differ include general business and economic conditions and the state
of the solar industry; governmental support for the deployment
of solar power; future available supplies
of high - purity silicon; demand for end - use products by consumers and inventory levels
of such products in the supply chain;
changes in demand from significant customers;
changes in demand from major markets such as Japan, the U.S., India and China;
changes in customer order patterns;
changes in product mix; capacity utilization; level
of competition;
pricing pressure and declines in average selling
prices; delays in new product introduction; delays in utility - scale project approval process; delays in utility - scale project construction; delays in the completion
of project sales; continued success in technological innovations and delivery
of products with the features customers demand; shortage in supply
of materials or capacity requirements; availability
of financing; exchange
rate fluctuations; litigation and other risks as described in the Company's SEC filings, including its annual report on Form 20 - F filed on April 27, 2017.
Factors that could cause actual results to differ include general business and economic conditions and the state
of the solar industry; governmental support for the deployment
of solar power; future available supplies
of high - purity silicon; demand for end - use products by consumers and inventory levels
of such products in the supply chain;
changes in demand from significant customers;
changes in demand from major markets such as Japan, the U.S., India and China;
changes in customer order patterns;
changes in product mix; capacity utilization; level
of competition;
pricing pressure and declines in average selling
prices; delays in new product introduction; delays in utility - scale project approval process; delays in utility - scale project construction; continued success in technological innovations and delivery
of products with the features customers demand; shortage in supply
of materials or capacity requirements; availability
of financing; exchange
rate fluctuations; litigation and other risks as described in the Company's SEC filings, including its annual report on Form 20 - F filed on April 20, 2016.
a bond where no periodic interest payments are made; the investor purchases the bond at a discounted
price and receives one payment at maturity that usually includes interest; they have higher
price volatility than coupon bonds as a result
of interest
rate changes
So it's better to think about
changes in commodity
prices in terms
of the terms
of trade than on the exchange
rate.
Since
changes in interest
rates impact bond funds differently than bonds and CDs, estimates
of price sensitivity may be less accurate the larger the shift in interest
rates.
Since investors can't quickly
change the long - term growth
rate of earnings, the only way to substantially increase the long - term
rate of return offered by stocks is to lower
prices vertically.
First, though this just labels the question posed above, the pass - through
of dollar / exchange -
rate changes to import
prices has fallen from 60 to 25 percent.
In an ongoing dispute over electricity
rate changes proposed by the crown corporation last November, the Canadian Office and Professional Employees Union, Local 378, says that BC Hydro is using an accounting slight -
of - hand to mask the real financial toll
of unrealistically low electricity
prices.
Factors that could cause actual results to differ include general business and economic conditions and the state
of the solar industry; governmental support for the deployment
of solar power; future available supplies
of high - purity silicon; demand for end - use products by consumers and inventory levels
of such products in the supply chain;
changes in demand from significant customers;
changes in demand from major markets such as Japan, the U.S., India and China;
changes in customer order patterns;
changes in product mix; capacity utilization; level
of competition;
pricing pressure and declines in average selling
prices; delays in new product introduction; delays in utility - scale project approval process; delays in utility - scale project construction; cancelation
of utility - scale feed - in - tariff contracts in Japan; continued success in technological innovations and delivery
of products with the features customers demand; shortage in supply
of materials or capacity requirements; availability
of financing; exchange
rate fluctuations; litigation and other risks as described in the Company's SEC filings, including its annual report on Form 20 - F filed on April 27, 2017.
It is important to note that the components
of the CPI do not
change in
price at the same
rates or even necessarily move the same direction.
A bond fund with a longer average maturity will see its net asset value (NAV) react more dramatically to
changes in interest
rates as the
prices of the underlying bonds in the portfolio increase or decline.
Commodity
prices may be affected by a variety
of factors at any time, including but not limited to, (i)
changes in supply and demand relationships, (ii) governmental programs and policies, (iii) national and international political and economic events, war and terrorist events, (iv)
changes in interest and exchange
rates, (v) trading activities in commodities and related contracts, (vi) pestilence, technological
change and weather, and (vii) the
price volatility
of a commodity.
IMF estimates
of annual growth
rate of world real GDP (in red, right scale) and year - over-year percent
change in commodity
prices as measured by the quarterly average CRB / BLS raw industrials
price index (in green, left scale).
This set
of monetary policies affects financial asset
prices in a different way compared to
changes in short - term interest
rates, and we should be humble about what we claim about understanding the importance
of this distinction.
One theory is that big, structural
changes in trade and technology have permanently lowered the
rate of price growth.
Well, because
of many factors like bitcoin halving and btc / usd exchange
rate HashFlare needed to
change the
price and the yielding profits
of the SHA - 256 mining program.
Duration represents a measure
of the sensitivity
of the
price (the value
of principal)
of a fixed - income investment to a
change in interest
rates.
Floating -
rate * The coupon on a floating -
rate corporate bond
changes in relationship to a predetermined benchmark, such as the spread above the yield on a six - month Treasury or the
price of a commodity.
[5]
Of course, just how the exchange
rate reacts to a
change in commodity
prices will depend, among other things, on how monetary policy is expected to respond.
There is,
of course, a very important distinction to be made between a permanent, but one - time, shift in the level
of prices and a persistent increase in the
rate of change of prices, though in practice it may be very difficult to tell the difference.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward - looking statements include, but are not limited to, increased competition; the Company's ability to maintain, extend and expand its reputation and brand image; the Company's ability to differentiate its products from other brands; the consolidation
of retail customers; the Company's ability to predict, identify and interpret
changes in consumer preferences and demand; the Company's ability to drive revenue growth in its key product categories, increase its market share, or add products; an impairment
of the carrying value
of goodwill or other indefinite - lived intangible assets; volatility in commodity, energy and other input costs;
changes in the Company's management team or other key personnel; the Company's inability to realize the anticipated benefits from the Company's cost savings initiatives;
changes in relationships with significant customers and suppliers; execution
of the Company's international expansion strategy;
changes in laws and regulations; legal claims or other regulatory enforcement actions; product recalls or product liability claims; unanticipated business disruptions; failure to successfully integrate the Company; the Company's ability to complete or realize the benefits from potential and completed acquisitions, alliances, divestitures or joint ventures; economic and political conditions in the nations in which the Company operates; the volatility
of capital markets; increased pension, labor and people - related expenses; volatility in the market value
of all or a portion
of the derivatives that the Company uses; exchange
rate fluctuations; disruptions in information technology networks and systems; the Company's inability to protect intellectual property rights; impacts
of natural events in the locations in which the Company or its customers, suppliers or regulators operate; the Company's indebtedness and ability to pay such indebtedness; the Company's dividend payments on its Series A Preferred Stock; tax law
changes or interpretations;
pricing actions; and other factors.
That said, people with higher incomes and higher net worth tend to be sensitive to the impact
of interest
rates changes on asset
prices.
It's worth noting however, that bond ladders don't completely eliminate
rate risk, the
price of bonds in the ladder continues to fluctuate as
rates change, and an investor will still face periodic reinvestment risk for some portion
of the portfolio.
The
rate for energy costs will
change if the average
price of diesel has
changed from the previous range for a period
of more than two out
of the previous three weeks.
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.
When interest
rates change, a bond's
price will
change in the opposite direction
of rates by a corresponding amount.