- Sunstone Hotel Investors Reports Results For First Quarter 2020
- White Mountains Reports First Quarter Results
- AAM Reports First Quarter 2020 Financial Results
- Premier Financial Bancorp, Inc. Reports First Quarter 2020 Earnings
- Amyris, Inc. Reports First Quarter 2020 Results
- Grand Slam in the DMS Mid-level Segment - Decisive Nominations Won
- Grand Slam in the DMS Mid-level Segment - Decisive Nominations Won
- U.S. Postal Service Reports Second Quarter Fiscal 2020 Results
- Integrated Ventures's Releases Preliminary Results For Q3/2020 Featuring 50% Revenue Growth And 87% Reduction In Operational Exp
- Converge Technology Solutions Announces Date for First Quarter 2020 Financial Results Conference Call
- AgriBank Reports First Quarter 2020 Financial Results
- Equinox Gold Annual General Meeting, Corporate Update and First Quarter 2020 Financial Results
- Equinox Gold Annual General Meeting, Corporate Update and First Quarter 2020 Financial Results
- Ascent Resources Utica Holdings Reports First Quarter 2020 Operating Results And Announces Revised 2020 Guidance
- Biglari Holdings Inc. News Release
- Chicago Rivet & Machine Co. Announces First Quarter Results of Operations
- Neenah Reports First Quarter 2020 Results
- Ur-Energy Releases 2020 Q1 Results
- Ur-Energy Releases 2020 Q1 Results
- Ritchie Bros. reports first quarter 2020 results
Adviser links: ventilation of your schedule
Mondays are all about financial adviser-related links here at Abnormal Returns. You can check out last week’s links including a look at... PodcastsBrendan Frazier talks with Deirdre Van Nest about communicating with clients in an emotionally-compelling way. (wiredplanning.com)Daniel Crosby talks with Emily Koochel about defining and seeking financial wellness. (standarddeviationspod.com)BanksThe combined UBS-CS will be a money management giant. (barrons.com)The FDIC is planning to sell SVB Private separately from the rest of the bank. (reuters.com)Practice managementWhy scale in the RIA space is increasingly important. (citywire.com)Adviser technologies are becoming commoditized. What comes next? (kitces.com)RIAs are increasingly pushing back against SEC charges. (citywire.com)RetirementSpending in retirement is a dynamic process. (blogs.cfainstitute.org)Retirees have a lot of locked up home equity. (investmentnews.com)As people get older, their estimate of Social Security benefits get more accurate. (papers.ssrn.com)The bizAltruist is buying Shareholders Service Group, a brokerage and custodial services platform. (thinkadvisor.com)Lisa Shidler, "Farther is hoping the logic of creating a one-umbrella, one-brand RIA with a plethora of choice will draw good advisors and their clients' assets." (riabiz.com)AdvisersSantiago Burridge, "You can’t have a relationship with a portfolio or an algorithm." (advisorperspectives.com)A talk with James Traylor, president and co-founder of Rivent Partners, about how the firms works with families with disability issues. (investmentnews.com)What it's like to make a mid-career shift to financial planning. (marknewfield.substack.com)Advisers need to be able to help clients with cash management. (financial-planning.com)Adviser outreach should have a specific purpose. (advisorperspectives.com)A shocking number of people don't have a will or estate plan. (thinkadvisor.com).....»»
Signature Bank Noncrypto-Related Deposits to Be Assumed by New York Community Bancorp Unit: FDIC
The 40 former branches of Signature Bank will operate under New York Community Bancorp's Flagstar Bank, N.A., as of Monday......»»
Market Maker DWF Labs Invests $20M in Derivatives Trading Platform Synthetix
DWF Labs purchased $15 million worth of Synthetix's native token SNX on March 16 with a further purchase of $5 million to follow......»»
Crypto.com Moves Closer to an Operational License in Dubai
Singapore-based digital asset trading platform Crypto.com has received a preparatory license from Dubai's Virtual Digital Assets regulator......»»
Belgian Crypto Ads Must Warn of Risks Under New Rules
The Financial Services and Markets Authority will have to be notified of major ad campaigns, as a survey reveals crypto investors are often trying to get rich quick......»»
: S&P 500, Dow open higher as banking jitters ease after UBS-Credit Suisse deal
The S&P 500 and Dow opened higher on Monday after UBS Group agreed to buy its beleaguered Swiss peer, Credit Suisse, in a deal that was aided by Swiss authorities. The S&P 500 SPX gained 5 points, or 0.1%, to 3,921. The Dow Jones Industrial Average DJIA advanced 90 points, or 0.3%, to 31,952. The Nasdaq Composite COMP shed 16 points, or 0.1%, to 11,618. On Sunday night in New York, the Federal Reserve in coordination with a host of other central banks announced plans to introduce daily U.S. dollar swap-line operations to help bolster liquidity in the global financial system. U.S. banking stocks including holdings of the SPDR S&P Regional Bank ETF KRE traded broadly higher after the open, although weakness persisted in shares of First Republic Bank FRC, which opened sharply lower. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
: Fed-funds futures traders see 73% chance of quarter-point hike on Wednesday, boost odds of May hike
Fed-funds futures traders are pricing in a scenario in which Federal Reserve policy makers look past banking-sector developments to some extent, and keep hiking interest rates through May. A 73% chance of a quarter-of-a-percentage-point rate hike for Wednesday was seen, up from 62% on Friday — which would take the fed funds rate target to a range of 4.75% to 5%. Meanwhile, traders boosted the chances of another quarter-point hike in May, to 36% versus 20.7% previously. Treasury yields also bounced back across the board on Monday, led by advances in the 1- and 3-month rates. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
Futures Reverse Overnight Plunge As European Banks Stabilize From Historic Rout
Futures Reverse Overnight Plunge As European Banks Stabilize From Historic Rout US equity futures, global markets and European bank stocks have stabilized, rebounding off worst levels which saw Europe's brand new banking megagiant UBS plunge as much as 16% before recouping most of the losses... ... as investors digested UBS’s agreement to buy Credit Suisse as well as central bank moves to boost dollar liquidity in an effort to restore confidence in the global financial system. Futures contracts on the S&P 500 were little changed at 7:30 a.m. ET after tumbling 1% earlier. The Stoxx Europe 600 index was modestly higher, with banks and financial services still the sharpest fallers. UBS shares sank as much as 16%, while Credit Suisse sank 60%. European bank stocks pared losses with the Stoxx Europe 600 Banks Index down less than 1%, after after dropping as much as 6%. A gauge of Asian shares fell by more than 1%. In premarket trading, First Republic Bank was poised to extend last week’s record loss as the US lender’s shares plunged 19% after S&P cut its credit rating again. Wells Fargo and Citigroup trimmed US premarket declines. Gold-mining stocks rallied in premarket trading on Monday, after a $3.2 billion deal between UBS and troubled lender Credit Suisse failed to calm nerves in the banking industry, knocking risk appetite. Newmont, the biggest US-listed gold miner, gains as much as 2.6%; Harmony Gold Mining +5.6%, Gold Fields +2.2%, New Gold +3.4%, Wheaton Precious Metals +1.5%, First Majestic Silver +2%, Pan American Silver +0.7%. The price of gold rose above $2,000 an ounce for the first time in a year amid safe-haven appeal. Here are some other notable premarket movers: Cryptocurrency-exposed stocks rise after Bitcoin extended its gains for a fifth consecutive session, with the digital asset reaching levels not seen in about nine months. Marathon Digital (MARA US) +5.6%, Riot Platforms (RIOT US) +8% and Coinbase (COIN US) +4.2% Energy stocks decline as investors’ concern about the banking system spur broad risk aversion and drag crude prices lower. Exxon Mobil (XOM US) slid 1.3%, Chevron (CVX US) -1.1%, Occidental Petroleum (OXY US) -1.1%. For those who were lucky enough to be away from their computers this weekend, this is what you missed: Credit Suisse shareholders will receive 1 share in UBS (UBSN SW) for 22.48 shares in Credit Suisse which reflects a merger consideration of CHF 3bln and that FINMA determined that Credit Suisse’s additional tier 1 capital in the aggregate nominal amount of around CHF 16bln will be written off. Credit Suisse also told staff in a memo that the details of the transaction are being worked through and no disruption to client services is expected, while it told staff there will be no changes to payroll arrangements and bonuses will still be paid on March 24th. UBS said the company will suspend share buybacks and that they did not initiate the discussions but believe the transaction is financially attractive to UBS shareholders and are planning to de-risk and downsize Credit Suisse’s investment banking operations. UBS also noted its strategy is unchanged in US and APAC and said that Credit Suisse is quite complementary to the wealth business in Southeast Asia. Furthermore, Colm Kelleher will be Chairman and Ralph Hamers will be Group CEO of the combined entity, while the transaction is not subject to shareholder approval and there is a material adverse change clause on the Credit Suisse deal. SNB said it is providing substantial liquidity assistance to support the UBS takeover of Credit Suisse and the takeover was made possible with the support of the Swiss federal government, FINMA and SNB, while it added that both banks have unrestricted access to the SNB’s existing facilities. There were also comments from the Swiss Finance Minister that this is a commercial solution and not a bailout, while she noted the cost of bankruptcy to the Swiss economy would have been huge. ECB said it welcomes the swift actions and decisions taken by Swiss authorities and noted that the Euro area banking sector is resilient with strong capital and liquidity positions. ECB’s Lagarde also stated that the ECB’s policy toolkit is fully equipped to provide liquidity support to the euro area financial system if needed. BoE said it welcomes the comprehensive actions by the Swiss authorities to merge UBS and Credit Suisse, while it has been engaging with international counterparts throughout preparations for the announcement. Furthermore, it stated that the UK banking system remains safe and sound and is well-capitalised and funded. Fed Chairman Powell and US Treasury Secretary Yellen said they welcome the announcements by Swiss authorities to support financial stability and noted the capital and liquidity positions of the US banking system are strong and US financial system resilience is strong. Furthermore, they have been in close contact with international counterparts to support their implementation. At least two major banks in Europe are examining scenarios of contagion potentially spreading across Europe’s banking sector and looking to the Fed and ECB to step in with stronger signals of support, according to Reuters citing executives with knowledge of the deliberations. Banking stocks and bonds plummeted after UBS Group sealed a state-backed takeover of troubled peer Credit Suisse, a deal that was shoved down Credit Suisse investors' throats - literally - in an attempt to restore confidence in a battered sector. The Federal Reserve and five other central banks announced coordinated action on Sunday to boost liquidity in US dollar swap arrangements. The Fed’s next policy decision is due later this week, with market attention on whether it may slow or pause interest-rate hikes. UBS emerged as Switzerland’s one and only global bank, a risky bet that makes the Swiss economy more dependent on a single lender. Credit Suisse told staff its wealth assets are operationally separate from UBS for now, but once they merged clients might want to consider moving some assets to another bank if concentration was a concern. The rudest shock in the rushed deal was reserved for the holders of Credit Suisse's riskiest tranche of bonds. UBS is salvaging the most value from the wreckage, says Breakingviews columnist Liam Proud. Hedge fund managers and other large investors believe it is far too soon to call an all-clear on turmoil in the global financial sector. Amid the endless turmoil, the KBW Bank Index plunged 28% over the past two weeks, with financials rattled by concerns over Credit Suisse as well the recent failures of Silicon Valley Bank and two other US lenders. Gains in tech stocks have helped support the overall market, however, as investors look for a safe haven. "The turmoil still has at least a couple of days to play out, and only the Fed can come in and calm that,” Chris Beauchamp, chief market analyst at IG Group Holdings Plc, said on Bloomberg Television. He expects the US central bank to hike rates by 25 basis points as a pause would be interpreted by markets as a sign that the stress in banks is bigger than initially thought. “Assuming these banking stresses do not evolve into something more serious, the European Central Bank and the Fed may perceive that they are at or near their objectives with current policy,” said Brad Tank, chief investment officer for fixed income at Neuberger Berman. “The Fed, in particular, is further along in its tightening cycle and should have more flexibility to pause — and markets are indeed pricing for 2023 fed funds rate cuts once again.” Meanwhile, one day after he revealed his shock that stocks remain resilient and just under 4,000 despite calling for a crah for the past 3 months, Morgan Stanley’s Michael Wilson said the stress in the banking system marks what’s likely to be the beginning of a painful and “vicious” end to the bear market in US stocks, adding that the risk of a credit crunch has increased materially. The S&P 500 will remain unattractive until equity risk premium climbs to as high as 400 basis points from the current 230 level, according to the bearish strategist who two weeks ago flip-flopped briefly to bullish before getting rugpulled by the banking crisis. European stocks are higher after reversing the negative knee-jerk reaction to the terms of the UBS takeover of Credit Suisse. The Stoxx 600 is up 0.6% as gains in utilities, miners and consumer products outweigh declines in bank stocks. European oil stocks declined as investors’ concern about the potential for a global banking crisis spur broad risk aversion and drag crude prices lower. The Stoxx Europe 600 Energy index slid 1%; among oil majors, Shell declined 1.5%, TotalEnergies -1.3%, and BP -0.6%. Smaller producers also dropped with Harbour Energy falling 5.7% and Tullow Oil -7.7%. Here are the biggest European movers: UBS shares drop as much as 16%, the most in eight years, after a government-brokered deal for it to buy rival Credit Suisse prompted a slew of downgrades Deutsche Bank declines 11%, ING -9.6%, Commerzbank -9.6%, Standard Chartered -8.7%, BNP Paribas -9% following UBS’s agreement to buy Credit Suisse El.En shares slide as much as 9.6% after Berenberg downgrades the laser- equipment maker to hold from buy, saying the company has a “tough year ahead” JM AB falls as much as 7.7% after DNB Markets gave the Swedish construction and building management company its sole sell rating in reinstated coverage Centamin shares rise as much as 6.6%, Endeavour Mining up as much as 7.2% and Fresnillo rises as much as 4.1% as gold gains owing to haven demand amid banking concerns Earlier in the session, Asian stocks declined as the UBS takeunder failed to quell investor concerns about the health of the global financial system. The MSCI Asia Pacific Index fell as much as 1.4%, reversing most of its gain from Friday, with tech and financial names among the biggest drags. Hong Kong gauges led losses in the region as financial stocks including HSBC and AIA Group fell due to worries over risky bond exposures. While the takeover of Credit Suisse is seen to reduce the immediate systemic risk for the banking sector, investors are worried over further repercussions from its bonds. Traders are also focused on the Federal Reserve’s rate decision later this week. “Even with the rescue plans over the weekend, it is hard to predict what will happen in the near future,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd. “The measures to restore confidence in banks and to tame inflation go in opposite directions, and the dilemma is reducing risk appetite in the stock market.” China’s onshore equity benchmark erased earlier gains even after its central bank unexpectedly cut the reserve requirement ratio late Friday. The PBOC’s announcement timing “seems to fall in line with recent global banking jitters, which suggests that the PBOC is on high alert to provide any cushion against any knock-on impact from recent turmoil,” said Jun Rong Yeap, market strategist at IG Asia In FX, the Bloomberg Dollar Spot Index steadied, erasing a decline of as much as 0.2% earlier while the Japanese yen is the best performer among the G-10’s. The New Zealand dollar is the weakest. Australia and New Zealand’s currencies flipped to losses amid souring risk sentiment. “Traders are looking for haven assets again with bank stocks falling, and worries about CoCo bonds gaining momentum,” Mingze Wu, a foreign exchange trader at StoneX Group, said of contingent convertible bonds. “The insistence of the Swiss National Bank to make the UBS-Credit Suisse deal happen suggests the rot was deeper and greater than they might have thought, and the dollar is an obvious beneficiary of this rush to safety” In rates, the nervous start to the trading week prompted a flight to safety, with German and UK government bonds rallying. 2-year TSY yield fell as much as 21bps to 3.63%, while its 10- year peer slid to as low as 3.29%, the lowest since September; traders bet on 15bps of Fed hikes this week but eased tightening beyond by as much as 12bps, pricing 105bps of cuts from the peak in May through to year-end. Bund futures are off their best levels but still in the green with 10-year yields down 4bps while two-year yields fall 8bps. In commodities, oil prices fell again with West Texas Intermediate briefly plunging below $65 a barrel, as escalating investor concerns about a global banking crisis eroded appetite for risk assets including commodities. Gold steadied, after rising above $2,000 an ounce for the first time in a year. Bitcoin remains bid and has extended comfortably above the USD 28k handle for the first time since June, though is yet to convincingly breach USD 28.5k to the upside. There is nothing scheduled on the macro calendar today but there will be plenty of bank related newsflow. Market Snapshot S&P 500 futures down 0.1% to 3,943.50 MXAP down 1.1% to 155.86 MXAPJ down 1.4% to 498.89 Nikkei down 1.4% to 26,945.67 Topix down 1.5% to 1,929.30 Hang Seng Index down 2.7% to 19,000.71 Shanghai Composite down 0.5% to 3,234.91 Sensex down 1.3% to 57,214.31 Australia S&P/ASX 200 down 1.4% to 6,898.51 Kospi down 0.7% to 2,379.20 STOXX Europe 600 up 0.6% to 438 German 10Y yield little changed at 1.95% Euro down 0.3% to $1.0641 Brent Futures down 3.8% to $70.18/bbl Gold spot up 0.8% to $2,005.59 U.S. Dollar Index up 0.17% to 103.88 Top Overnight News from Bloomberg The Federal Reserve and five other central banks announced coordinated action Sunday to boost liquidity in US dollar swap arrangements, the latest effort by policymakers to ease growing strains in the global financial system. UBS Group AG shares slumped Monday as investors digested the news of its historic acquisition of rival Credit Suisse Group AG and began to assess the job of integrating the troubled Swiss lender. The riskiest bonds of European lenders are plunging after holders of Credit Suisse Group AG’s contingent convertible securities suffered a historic loss as part of its takeover by UBS Group AG. A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks were on the back foot amid ongoing banking sector jitters despite the announcement that UBS will take over Credit Suisse in an emergency rescue valued at CHF 3bln which would wipe out CHF 16bln of additional tier 1 bonds. ASX 200 extended its retreat from a recent break beneath 7,000 with declines led by weakness in the energy, real estate, consumer and financial sectors, although gold miners were boosted after last week’s climb in the precious metal. Nikkei 225 was pressured amid the banking sector woes and after the BoJ’s Summary of Opinions provided little in the way of new information whereby it reiterated that the BoJ must patiently maintain monetary easing. Hang Seng and Shanghai Comp. were varied with Hong Kong underperforming on broad weakness across sectors, while the mainland was kept afloat for most of the session after Friday’s surprise RRR cut by the PBoC in an effort to boost liquidity and support the economy, but opted to maintain its benchmark lending rates. Top Asian News PBoC 1-Year Loan Prime Rate (Mar) 3.65% vs. Exp. 3.65% (Prev. 3.65%); 5-Year Loan Prime Rate (Mar) 4.30% vs. Exp. 4.30% (Prev. 4.30%) PBoC warned the collapse of Silicon Valley Bank shows rapid monetary policy shifts in developed economies are having a hazardous impact on financial stability, according to Bloomberg citing comments from Deputy Governor Xuan. PBoC adviser Cai said China needs household stimulus to boost the recovery and noted that residents' incomes have not grown well in the past few years, so the recovery in consumption is not enough to support economic growth, according to Caijing. Russian President Putin said he expects total trade volume with China to exceed USD 200bln this year and it is important to increase the share of trade with China conducted in national currencies, according to Reuters. WHO advisers urged China to release all information related to the origin of the COVID-19 pandemic after new findings were briefly shared on an international database to track pathogens, while they recommended researchers in China investigate upstream sources of animals and animal products present in the Huanan Market before January 1st 2020, according to Reuters. BoJ Summary of Opinions from the March meeting stated that the BoJ must patiently maintain monetary easing until the price target is achieved and the BoJ must scrutinise without any preset idea the state of market function but must maintain easy policy at present. Furthermore, it stated the BoJ must focus on the risk of losing the chance to meet the price target with a premature policy shift, rather than the risk of being too late in shifting policy and must be mindful of the risk inflation may overshoot expectations. European bourses are mixed/flat, as marked banking-led pressure has eased throughout the morning following the initial reaction to the UBS-Credit Suisse merger. On this, Credit Suisse and UBS opened lower by over 60% and 8% respectively, but have since eased off lows with the broader SX7P index now ~2% lower vs downside of over 5% at worst. On the merger, attention is on Credit Suisse's AT1 bonds being written off; a detail which pressured such bonds in APAC trade, with HSBC for instance a notable initial laggard on this. Since, we have seen European regulators reiterate that CET instruments are the first to absorb losses, with AT1 only required after their full use. Stateside, futures are in similar proximity to the unchanged mark given the above as participants await updates around First Republic and look ahead to the FOMC. Top European News BoE's plans to revamp bank capital rules risk a 25% reduction in lending to small businesses which threatens jobs and economic growth, according to a study by consultants Oxera cited by FT. PoliticsHomes' Payne reminds that DUP MPs meet today to discuss their stance on Wednesday's Windsor Framework vote, expected to announce their stance on Tuesday. Moody’s affirmed Greece at Ba3; Outlook revised to Positive from Stable and affirmed Luxembourg at AAA; Outlook Stable, while S&P affirmed Belgium at AA; Outlook Stable. FX The DXY has struggled to benefit from the subdued start to the session, with the index near the mid-point of 103.68-103.96 parameters for much of the morning. Given the tone, the JPY is the standout outperformer with USD/JPY down to 130.55 vs 132.64 peak; though, given the relative pickup in equity performance USD/JPY is now holding above 131.00. Despite the subdued risk tone, CHF is the underperformer as the market's focus remains on Credit Suisse/UBS; USD/CHF above 0.93 and EUR/CHF above 0.99. Given their high-beta status, the Antipodeans are also faring poorly with RBA minutes and Kiwi trade data scheduled ahead. Elsewhere, peers are comparably more contained with EUR/USD holding above 1.0650 and Cable near 1.22. PBoC set USD/CNY mid-point at 6.8694 vs exp. 6.8701 (prev. 6.9052) Fixed Income EGBs and USTs are benefitting from marked haven demand, with Bunds over 140.00 and USTs nearing 117.00 at best, though the benchmarks have eased from highs as equity sentiment improves. Specifically, Bunds soared to a 140.30 peak vs 137.10 low, but have since pulled back to just below 140.00 as the associated 10yr yield slipped to a 1.92% intraday low. Stateside, USTs are similar in both direction and magnitude with yields lower across the curve and action more pronounced in the short-end currently; as it stands, market pricing via Reuters is leaning towards the Fed leaving rates unchanged on Wednesday, with around a 40% chance of a 25bp hike implied. Commodities WTI and Brent are lower intraday given the broader risk tone and while they are off lows, are yet to stage a 'recovery' akin to that seen in equities; currently, the benchmarks are lower by circa. USD 2/bbl just above USD 64.12/bbl and USD 70.12/bbl respective lows. Spot gold surpassed USD 2000/oz, but failed to hang onto the level as the DXY makes its way back into positive territory and broader sentiment improves slightly while base metals are moving with equity sentiment and as such are turning incrementally firmer on the session. Iraq’s Oil Minister said his country is committed to OPEC’s agreed production rates and obliged some oil companies' operations in the south to cut production to come in line with OPEC’s agreed rates, while it was also reported that Iraq and OPEC stressed the importance to coordinate to stabilise prices, according to Reuters. Iran set April Iranian light crude oil price to Asia at Oman/Dubai plus USD 2.50/bbl, according to Reuters. India plans to extend export restrictions on diesel and gasoline beyond March 31st, according to Reuters sources. TotalEnergies (TTE FP) said 34% of operational staff at its refineries and depots conducted a strike on Sunday morning in protest against the government’s move to raise the retirement age by two years, according to Reuters. Kuwait Oil Company declares a state of emergency re. an oil spill located in west Kuwait; production unaffected. Geopolitics Russian President Putin visited Crimea on the 9th anniversary of its annexation from Ukraine and also visited Mariupol in the occupied Donetsk region of Ukraine, while he also met with the top command of Russia’s military operation in Ukraine at the Rostov-on-Don command post in southern Russia, according to Reuters. Russian President Putin said the visit by Chinese President Xi confirms the special character of the Russian-Chinese partnership and Russia is pinning big hopes on the visit, while he added Russia is expecting a powerful impulse to relations and that relations are at their highest ever point. Putin also said there are no limits or forbidden subjects in relations with China and he is grateful for China’s balanced line on events in Ukraine, as well as welcomes China’s willingness to play a constructive role in solving the Ukrainian crisis. Furthermore, Putin said that they are worried about dangerous actions that could undermine global nuclear security and Russia is open to a diplomatic settlement of the Ukraine crisis but rejects ultimatums, according to Reuters. Chinese President Xi said China has always taken an objective and impartial position on the situation in Ukraine and has made efforts to promote reconciliation and peace negotiations, according to Rossiiskaya Gazeta. ICC judge issued an arrest warrant for Russian President Putin over alleged war crimes related to ‘unlawful deportation’ of Ukrainian children, according to The Guardian. It was also reported that German Chancellor Scholz said ICC is an important institution that has been given a mandate through international treaties and noted that nobody is above the law which is becoming clear now, according to Reuters. Ukrainian President Zelensky’s Chief of Staff and several top security officials including the Defence Minister held a call with US counterparts to discuss military aid for Ukraine, according to Reuters. Ukrainian Infrastructure Minister said the Black Sea grain deal has been extended for 120 days which is longer than the 60-day touted by Russia, while a UN spokesman confirmed the extension of the export deal but didn’t specify the length of the renewal, according to Reuters. EU foreign policy chief Borrell said an agreement was reached on ways to implement an EU-backed deal on normalising ties between Serbia and Kosovo, while he added that the sides agreed to implement their respective obligations in good faith. Saudi Arabia’s King Salman invited Iranian President Raisi to visit Riyadh, while it was also reported that Iran’s Foreign Minister agreed to hold a meeting at the foreign minister level with Saudi Arabia and said that Iran has declared a readiness to reopen embassies. In other news, Iraq and Iran signed a deal to tighten their border security. South Korea said that North Korea fired a short-range ballistic missile off the east coast into the sea on Sunday which flew 800km before hitting a target and is a clear violation of the UN Security Council resolution. In relevant news, G7 foreign ministers said they regret inaction by the UN Security Council regarding North Korea’s missile tests and that the March 16th ICBM launch undermines international peace, according to Reuters. North Korea confirmed it conducted exercises aimed at improving tactical nuclear capability on March 18th-19th and said the US and South Korea are expanding joint military drills aimed at North Korea involving US nuclear assets and its exercises are meant to send strong warnings against US and South Korea. Furthermore, North Korean leader Kim said the country should be ready to conduct nuclear attacks at any time in a deterrence of war, according to KCNA. US Event Calendar Nothing major scheduled DB's Jim Reid concludes the overnight wrap This weekend felt like being transported back into 2007-2008 in many respects with a race-against-time deal between UBS and Credit Suisse being put together in full view of the market. The most remarkable thing about yesterday was the huge swings in Credit Suisse AT1s on a Sunday. Clips of the $17.3bn of outstanding CS AT1 bonds seemed to trade at both ends of a mid-20s to around 70c range as the outline of the UBS deal filtered through. It was eventually a shock that the AT1s were zeroed in the deal even as UBS eventually bought CS for $3.3bn, a firmly positive number. This was however less than half what they were worth at the close on Friday and down 99% from their peak pre-GFC. The decisions to wipe out AT1 bondholders is going to be the biggest issue medium and longer-term for the European banking sector, especially when the company was bought with a positive value yesterday. It's hard to argue with the morals of it but it will likely increase the cost of capital for banks which could lead to an additional tightening of lending conditions. So that c.$17bn of debt destruction could eventually be worth multiples of that to the wider European economy and in other regions too. Selected Asian AT1 securities are trading around 5-10% down as we type and HSBC equity is around -6% in Hong Kong so this serves as a benchmark for the European banking open. The good news at the macro level is that the CS situation has been dealt with and there are no obvious European next shoes to drop at this stage. CS had been decoupled from the rest of the continents' banking sector for months now and therefore was by far and away the weakest link when the US regional banking woes began less than 2 weeks ago. So the market has now got to balance the reduction of systemic risk with the likely higher cost of some forms of bank capital. There will also be nervousness as to how easy it was to change laws and market conventions in order to get this deal done. Some risk premium will surely be factored in to the cost of capital for the sector now. Meanwhile, in a coordinated global response, the Fed in a statement along with five other central banks - including the BOE, the BOJ, the ECB and the SNB - last night announced that they would enhance dollar swap lines i.e., to increase the frequency of swap line agreements from weekly to daily, beginning March 20 and will continue “at least” through the end of next month. In doing so, the central banks indicated that the move would serve as an “important backstop” amid financial market unease, thereby helping to keep credit flowing to households and businesses. Overall, Asian equity markets have started the week on a weaker footing with the Hang Seng (-2.56%) leading losses across the region, with the Nikkei (-1.01%) and the KOSPI (-0.46%) also dipping in early trade. Elsewhere, stocks in mainland China are bucking the regional negative trend with the CSI (+0.12%) and the Shanghai Composite (+0.12%) both trading slightly higher. Note their was a 25bps RRR cut on Friday. Outside of Asia, US stock futures tied to the S&P 500 (+0.12%) and NASDAQ 100 (+0.23%) are relatively flat which helps after the weekend news but then again as you'll see from the weekly review at the end the S&P 500 was higher last week in the face of incredible turmoil elsewhere. Meanwhile, yields on 10yr US Treasuries are stable while 2yr yields (+2.92bps) briefly touched 4% before sliding back to 3.87% as we go to press. Moving forward, it's hard not to have sympathy for the Fed this week. Any criticism of their policy should probably be more directed to the actions of 2020-2021 for keeping policy excessively too loose as government spending, money supply and inflation was surging. Today they are in a catch-22 position where the excesses of those days (and earlier) are now unravelling while inflation is still way above target. Their rate decision on Wednesday will be the undoubted non-banking related highlight of the week but we will also have the BoE meeting (Thursday), UK CPI (Wednesday), Japan CPI (Thursday), flash global PMIs (Friday) which might capture a small amount of the turmoil period, and importantly Chinese President Xi Jinping will be in Moscow from today to Wednesday. After the FOMC, it will be the BoE's turn on Thursday to decide on rates. Our UK economists preview the meeting here and expect a final +25bps hike as well as likely dovish forward guidance amid concerns over overtightening risks. The decision will follow a host of UK inflation data released on Wednesday. Also on Thursday markets may follow the SNB meeting more closely than usual following this week's turmoil around Credit Suisse. Aside from several monetary policy decisions, there will also be a plenty of central bank speakers, especially from the ECB, including President Lagarde (twice), following last week's +50bps hike. In the US, aside from the PMIs investors will also get durable goods orders (DB forecast -0.5% vs -4.5% in January) on Friday and a host of regional Fed indicators throughout the week to gauge economic sentiment. Housing market data including existing home sales (tomorrow) and new home sales (Thursday) are also due. Over in Europe, other key data will include the PPI (today) and the ZEW survey (tomorrow) for Germany, Eurozone consumer confidence on Thursday and UK consumer confidence and retail sales on Friday. Moving on to Japan, the key release will be the CPI report on Thursday. Our Chief Japan Economist (full preview of the week ahead here) expects government subsidies for electricity and gas to weigh on core CPI inflation (3.2% vs +4.2% in January) but core-core CPI ex. energy to pick up 3.4% (3.2%) but reach its peak for the cycle. Looking back on a tumultuous last week now. On Friday, with market volatility already elevated from the growing concerns around the global financial system the preliminary University of Michigan sentiment survey dropped -4.6pts to 63.4. That was just the second monthly drop since last June, and the lowest reading since December. The declines pre-dated the SVB collapse. If one wanted to find a positive in the report inflation expectations were lower with 5-10yr expectations down to 2.8% (2.9% expected), while the 1yr inflation expectation was 3.8% (4.1% expected). That’s the lowest 1yr expectations have been since April 2021. That was just the last link in a chain of market moving events last week that repriced Fed futures across the curve. Expectations for a 25bps hike at the March meeting is now at just 60% with a 15.0bp hike priced in. That is down -18.3bps on the week and -4.2bps on Friday, as well as -27.8bps since Powell’s testimony before the Senate Banking Committee the week before last. At the same time, the expected terminal rate ended the week at 4.794% by the May meeting after starting the week at 5.285% at the June meeting and being as high as 5.691% at the September meeting on the prior Wednesday before the SVB news broke. Futures are also now pricing in nearly -96bps of rate cuts by year-end after starting the week with -40bps of cuts priced. 10yr Treasury yields fell back another -14.8bps on Friday and -27.0bps over the course of the week to their lowest level since early-February at 3.429%. The 2yr yield saw a much bigger move, coming down -74.9bps last week (-32.0bps on Friday) to their lowest level since September 2022. On this side of the pond, 10yr bund yields fell back -40.0bps (-18.2bps on Friday) last week to 2.108%, its lowest point since the first week of February. The 2yr bund yield fell by -71bps last week (-22.0bps Friday) in its most significant weekly down move since September 1992. While sovereign bonds outperformed last week, US equities whipsawed with a large amount of dispersion. Even though the S&P 500 closed the five days higher, US banks continued to selloff with the KBW bank index down -14.55% last week (-5.25% Friday), with major banks like JPM (-5.87%), BofA (-8.09%), Citi (-8.46%), and GS (-7.26%) outperforming while the regional bank ETF KRE was down -14.30% last week. With CS seeing pressure from a lack of depositor and investor confidence, the SNB offered the Swiss bank a 50bn franc credit line. However this was not enough to stop the stock from ending the week -25.48% lower (-8.01% Friday), while European Banks at large were down -13.40% (-2.72% Friday) leaving the index up just +1.2% YTD. The STOXX 600 was down -3.85% week-on-week (-1.21% on Friday), whilst the CAC and DAX fell -4.09% (-1.43% on Friday) and -4.28% (-1.33% on Friday) respectively. With risk markets selling off, credit spreads widened significantly on the week once again. The Euro Crossover HY CDS index was +66.7bps wider (+18.8bps wider Friday) and EUR IG CDS +18.1bps wider on the week (+3.8bps Friday). EUR HY CDS is now +18.9bps wider YTD, with EUR IG +9.9bps wider since the start of the year. US credit also significantly widened again as the US HY CDS index was +31.6bps wider (+26.8bps Friday) with IG +4.8bps wider following a +5.1bps move on Friday. The weekly widening has left USD HY CDS +45.7bps wider YTD, while US IG CDS was +5.8bps wider YTD. Finally in commodities, industrial inputs sold off as recession fears rose. Brent crude fell back -11.85% (-2.32% on Friday) and WTI was down -12.96% (-2.36% on Friday), meanwhile European natural gas futures reversed the prior week’s significant rally with energy prices falling -18.92% week-on-week (-3.35%). Copper was down -3.26% (+0.72% Friday) while the overall Bloomberg Commodity index was down -1.87% (-0.16% Friday). With the risk-off tone throughout markets, Gold was a notable outperformer with the precious metal up +6.48% on the week (+3.63% Friday) in its best weekly performance since Covid to close at its highest level in a year at $1989/oz. Tyler Durden Mon, 03/20/2023 - 08:03.....»»
The "Bad News" Is More European Than US... For Now
The 'Bad News' Is More European Than US... For Now Authored by Peter Tchir via Academy Securities, Quick Rundown With markets moving quickly, we will do a quick recap of where we are at and what we think will be most important for markets this week. It is a follow up from Saturday’s, Gasp, Gulp, Glug and Sunday’s 8 Cup of Coffee Day. Academy was able to participate in Bloomberg’s Banking Special yesterday, with this portion of our interview, focused on AT1, being made into its own clip (the rest of the interview was also interesting, I think, but will find that clip later). And, finally, we got to wake up to Academy making it into the NY Times coverage of Investors Greet CS Deal Warily. Biggest Concerns The one thing we did not get this weekend was an explicit guarantee of bank deposits in the U.S. IT is “implicit” because depositors were saved at Signature Banks and Silicon Valley Bank using emergency measures, but it has not been made explicit. As every equity and credit analyst, as every private equity firm, questions companies on their “cash and cash equivalents” line and demands to know where they are banking, more pressure will mount to continue move out of deposits (I don’t think it is a matter of safety, but one of expedience). What I’ve missed until this weekend is how problematic that is, not just for mid-size banks, but for the 100s or even 1000s of smaller banks, that are highly regionalized or even localized. Many of whom are the lifeblood of daily business in those areas. This could/should come, but until it does, there will be pressure on these banks (I like buying dips and growing an outsized position in this space) despite the lack of clarity. The decision to wipe out CS AT1 bonds. Bonds that had been trading in the mid to high 80’s and even 90’s as of March 10th traded at like 2 today. I’ve read many arguments that “support” that decision, as these were meant to be provide a capital “buffer” at times of stress, but the equity is getting paid and no official capital ratios were signaling this treatment. There are two problems with this from a European financial standpoint: Asset managers who own any AT1 paper will have to question that decision, and it will focus their attention on the weakest bank(s) in every country. The ability to raise this important level of capital is gone, at least for some time, for many, if not all banks in Europe. The decision spreads “realized losses” outside of the banking system. My understanding is banks don’t own much of each other’s AT1 paper as the treatment is onerous. So this means it is spread out throughout the financial system. Who knows what new trouble that might cause? Back of Mind Concerns No meaningful equity infusions into banks that have been trading poorly of late. This is only back of mind, rather than front and center, because we I think explicit guarantees are an almost necessary condition for this to occur. It seems odd to me that UBS stock is doing poorly, even relative to other European bank stocks, as on the surface it seems that either they got a good deal (not only was the cost low, the AT1 debt wiped out, funding (albeit senior in bankruptcy funding) is available from the SNB, but there is some additional loss backstop being provided), or the price of other banks seems expensive. It did not appear, from the series of press releases on Sunday that UBS was an “enthusiastic” buyer which is also a concern, given they had more time than anyone else to examine the books (though even that time was short relative to the complexity of a major international finance company). Central Banks are “selling” their cooperation (dollar funding lines, etc.) a little too hard. More concrete and unexpected action would be more helpful than just following what has become a standard “crisis” playbook. Good(ish) News No bank default in Europe. I don’t think anyone really thought this would happen so its only mildly positive and more than offset by the AT1 treatment. Oil is below $65 for the first time since 2021! It is good from an inflation front, but not sure what it means from an economic standpoint. Fed balance sheet is growing! I think markets are getting a little too excited about balance sheet growth, but the 2020/2021 playbook of lower interest rates and balance sheet growth driving stock prices higher (especially the riskiest sectors) is fresh in everyone’s mind. I do think Powell might have to discuss the possibility of suspending QT at this meeting. Few if any more Fed hikes. I don’t see how in this backdrop, where financial conditions are almost certain to tighten (funding pressure on banks, does that), the Fed can ignore the lag effects. Yes inflation has ticked up, but nothing right now is indicating we are on a strong economic path until the banking concerns get resolved. Oil seems to support a pause too. Bottom Line The “bad news” is more European than U.S. so be cautious with Europe on the stock and bond front. There is a very real possibility that we see some action on bank deposit guarantees so expect a bounce in U.S. stocks (especially the banks). The easy money Fed trade is probably already overdone, but could easily continue, so fade that cautiously, especially with the possibility of some good news on the bank deposit front. It is difficult to like interest rates at these levels, so reduce rate risk, at least for a trade, in the U.S. Weirdly, the rally in gold (balance sheet growth) and bitcoin (a massive anti-bank, anti-establishment sentiment) make sense. Good luck out there and be nimble, it seems like it could be another long week! (hopefully this note is still remotely relevant by the time you get it, which is anyone’s guess in this crazy, headline driven market). Tyler Durden Mon, 03/20/2023 - 08:15.....»»
Wall Street Reacts To Credit Suisse Bailout: UBS Default Risk Hits 11-Year High
Wall Street Reacts To Credit Suisse Bailout: UBS Default Risk Hits 11-Year High Unsurprisingly, CS shares collapsed to their UBS bid price... UBS share price is bouncing back from its ugly 16% opening plunge, but remains in the red... But UBS CDS has jumped to its highest since July 2012... ...after a government-brokered deal for it to buy rival Credit Suisse prompted a slew of downgrades from analysts, who warned of risks to the lender’s future earnings. KBW analyst Thomas Hallet cuts UBS to underperform from market perform, saying there is “considerable uncertainty around the earnings trajectory, while buybacks have been put on hold.” Buybacks were a key part of the investment thesis for UBS, he adds. Hallett also notes “unknowns and uncertainties” around key areas such as capital requirements and litigation risks, while the decision to write-down AT1 bonds will unsettle some. Says once the accounting noise has died down and there is more certainty on what value the transaction has generated, it could be a compelling deal. Another KBW analyst Andrew Stimpson expects that the move to wipe out AT1 bond holders to weigh on banks’ shares. Though the deal reduces contagion risk, he is “more fearful” of a rise in funding costs going up due to the decision on AT1s, or because of additional regulation on liquidity. Oddo analyst Roland Pfaender also cuts UBS to underperform from neutral, citing high execution risk on the deal, which saw “very limited due diligence”. Notes that UBS management expects deal to be EPS accretive only by 2027, and has suspended share buybacks. Says significant integration effort might dilute UBS’s technology and growth initiatives. Vontobel’s Andreas Venditti (buy) cuts price target to CHF19.5 from CHF22.5 citing higher cost of equity due to higher risk. Says UBS’s investment case changes “substantially”. Adds there are many significant risks, while issues currently impacting the global banking sector are not over. Manulife Investment Management (Marc Franklin, a portfolio manager of multi asset solutions). “Putting up a firewall to ensure that a bank run doesn’t result in further bank runs and loss of confidence elsewhere in the system,” the policymakers have acted quickly over the weekend. They don’t want financial markets to take the pressure as “we are in the process of significant liquidity tightening cycle as a result of central banks trying to tackle the inflation problem”. But after all that negativity, there were some upgrades on UBS, praising the logic behind the deal. BofA’s Alastair Ryan upgrades UBS to buy, praising the “impeccable” logic of the deal, due to cost synergies and enhanced scale. Notes it gives UBS a 30% share in Swiss deposits; writes that “UBS is acquiring for US$3bn a – troubled – company with US$54bn equity.” Raises price target to CHF23 from CHF21 ZKB analyst Michael Klien, however, raises UBS to outperform from market perform, saying that while the transaction increases the risk profile for UBS, the potential benefits are likely to outweigh the risks. Adds the transaction should be completed within a few weeks and should positively impact earnings per share. Morningstar analyst Johann Scholtz says “I think what will give investors confidence is the level of government support involved both in the form of liquidity and in the form of guarantees for future losses on the Credit Suisse portfolio and also restructuring costs”. This a very unique banking crisis in the making, where there hasn’t really been a credit event yet, Scholtz says in a Bloomberg TV interview. However, most were more pessimistic than optimistic in the longer-term... IG Markets’ Hebe Chen says the deal is a “strong wake-up call” to those who still believe that financial markets are not yet in a crisis. “If the collapse of SVB is more attributed to the external monetary policies, the fall of Credit Suisse exposed the rotten roots in the banking system — the poor risk controls and mismanagement. As such, the fall of Credit Suisse may have just been the tip of the iceberg”. Jefferies analyst Flora Bocahut says the deal removes immediate tail risks, but it raises more questions; UBS’ capital requirement will likely be revised up, and management focus will be captured by this deal for many quarters, maybe years, she adds. The earnings impact is difficult to assess, but that should indeed initially be dilutive for UBS, with the issuance of new shares and consolidation of a largely loss-making Credit Suisse. Citigroup analyst Andrew Coombs says UBS’ deal potentially has large cost synergies, but also carries the risk of sizable revenue attrition. For Swiss consumers, more than 25% mortgage market share is now with a single bank; there’s also increased concentration risk for private banking clients, a number of whom will have relationships with both banks. For the overall European banking sector, additional tier-1 costs may rise and deposit guarantee scheme limits may be reviewed. Charles-Henry Monchau, CIO at Banque Syz says “I really don’t like what happened on AT1. The risk is that all AT1 bonds collapse - so beyond Credit Suisse. This will put major pressure on banks’ financial ratios”. BetaShares Holdings’ Chamath De Silva, a portfolio manager says that apart from specific bank credit spreads and CDS premiums, the wider corporate bond market is not displaying signs of severe stress, despite some softening. Still, “the news of around $17 billion worth Credit Suisse’s AT1 securities being wiped out during the UBS takeover could spur additional credit selling”. And, as we noted earlier, that decision to wipe out CS' AT1 bonds spreads “realized losses” outside of the banking system. Our understanding is banks don’t own much of each other’s AT1 paper as the treatment is onerous. So this means it is spread out throughout the financial system. Who knows what new trouble that might cause? Tyler Durden Mon, 03/20/2023 - 08:36.....»»
85% Of Trump Supporters Think Protesting Against Arrest Is A Jan6-Style Trap
85% Of Trump Supporters Think Protesting Against Arrest Is A Jan6-Style Trap.....»»
Bed, Bath And Beyond Bludgeoned Below A Buck, But Still Not Bankrupt
Bed, Bath And Beyond Bludgeoned Below A Buck, But Still Not Bankrupt Shares of Bed, Bath and Beyond are getting the "Credit Suisse treatment" this morning, plunging under $1 as the struggling retailer continues an incessant yet increasingly difficult search for rescue funding. The retailer's latest plans include a reverse stock split and overseeing its shares getting tossed from the S&P SmallCap 600 Index, where it will be replaced by Lumen Technologies, according to a Monday morning Bloomberg wrap up. Earlier this month, the company had "lowered the price threshold of its deal with hedge fund Hudson Bay Capital to $1 until April 3, securing an extra $100 million of extra funding," Bloomberg wrote. The company is seeking approval for a reverse split between 1-for-5 and 1-for-10, with the final ratio to be determined by the Board. Shares are now down more than 95% over the past year. We have to give the company (which has already missed interest payments on its bonds) an "A" for effort, as it continues to somehow avoid filing for what feels like should be an inevitable bankruptcy, filling a last ditch effort for financing last month, as we noted. The company announced last month a plan to offer series A convertible preferred stock and warrants, raising over $1 billion. Wedbush wasn't enthused about the prospect of saving the company last month: “We see these capital-raising transactions as a ‘last gasp’ to survive before filing for bankruptcy protection where the common equity would likely be worthless,” Wedbush analyst Seth Basham wrote. “In the event the transactions are successful, BBBY common shares could rise as they are trading like options on the company’s survival, but the ultimate value would be undermined by this highly dilutive offering of preferred stock that would have priority over the common shares” A look into the company in early February claimed the company only has itself to blame for its dire financial straits. "Executives were mired in minutiae as the chain barreled toward bankruptcy," the report says, citing former employees. For example, last summer the company's executives urged white collar workers to return to the office four days a week despite the fact that many were already coming in. The article laid out how every solution the company tried only led them further into financial ruin. Even firing 20% of its workforce and shuttering 150 of its 770 stores before securing new financing didn't help the business. Tyler Durden Mon, 03/20/2023 - 09:15.....»»
Xi Arrives In Moscow As Putin Says Both Facing "Fierce & Aggressive" United States
Xi Arrives In Moscow As Putin Says Both Facing "Fierce & Aggressive" United States Chinese President Xi Jinping has arrived in Moscow on Monday for what Beijing is calling a "trip for peace" - but at a moment the White House is emphasizing "We don’t support calls for a ceasefire right now," according to the words of White House National Security Council spokesman John Kirby. "We certainly don’t support calls for a ceasefire that would be called for by the PRC in a meeting in Moscow that would simply benefit Russia," Kirby said. The three-day trip was kicked off as Xi's plane touched down at Moscow’s Vnukovo airport, where Russia’s deputy prime minister for tourism, sport, culture and communications, Dmitri N. Chernyshenko, greeted him a red carpet ceremony and military brass band. Image: Kommersant/AFP "I am very glad, at the invitation of President Vladimir Vladimirovich Putin, to come back to the land of our close neighbor on a state visit," Mr. Xi said upon arrival. He added: "China and Russia are good neighbors and reliable partners connected by mountains and rivers." Kremlin spokesman Dmitry Peskov told reporters that China's 12-point peace plan in Ukraine will top the agenda. "One way or another, issues raised in (Beijing's) plan for Ukraine will be touched upon during the negotiations," he said. "Comprehensive explanations will be given by President Putin" of the Russian position." Just hours ahead of the Chinese presidential plane being en route, both Xi and Putin published separate articles previewing the bilateral summit, with Xi emphasizing China’s push to end the Ukraine crisis reflects global support. Putin for his part wrote that he has "high expectations for the upcoming talks" with his "good old friend". Putin said he enjoys the "warmest relationship" with Xi, in a partnership between countries which is "consistently growing stronger" and has reached "the highest level in their history". Speaking of the talks, the first in-person summit with the Chinese leader since the start of the Ukraine war, Putin stressed, "We have no doubt that they will give a new powerful impetus to our bilateral cooperation in its entirety." According to more from Putin's letter, published also in English on state websites: Yet the main thing has remained unchanged: I am talking of the firm friendship between Russia and China, which is consistently growing stronger for the benefit and in the interest of our countries and peoples. The progress made in the development of bilateral ties is impressive. The Russia-China relations have reached the highest level in their history and are gaining even more strength; they surpass Cold War-time military-political alliances in their quality, with no one to constantly order and no one to constantly obey, without limitations or taboos. We have reached an unprecedented level of trust in our political dialogue, our strategic cooperation has become truly comprehensive in nature and is standing on the brink of a new era. Putin also at one point took a swipe directly at the United States: Sticking more stubbornly than ever to its obsolete dogmata and vanishing dominance, the "Collective West" is gambling on the fates of entire states and peoples. The US's policy of simultaneously deterring Russia and China, as well as all those who do not bend to the American dictation, is getting ever more fierce and aggressive. The international security and cooperation architecture is being dismantled. Russia has been labelled an "immediate threat" and China a "strategic competitor." Meanwhile, Washington is watching the Xi trip very closely, also as the Chinese leader is at some point soon expected to hold a phone call with Ukrainian President Zelensky.... Ahead of a meeting between Putin and Xi, White House NSC spokesperson John Kirby declares that any "call for a ceasefire" in Ukraine is "unacceptable." pic.twitter.com/Z1MUvdlTwS — Aaron Maté (@aaronjmate) March 20, 2023 And on China's mediation efforts in the Ukraine crisis in particular, Putin vowed that efforts to split the major Eurasian allies "won't work"... "The crisis in Ukraine, which was provoked and is being diligently fuelled by the West, is the most striking, yet not the only, manifestation of its desire to retain its international dominance and preserve the unipolar world order," the Russian leader wrote. "It is crystal clear that NATO is striving for a global reach of activities and seeking to penetrate the Asia-Pacific." He continued: It obvious that there are forces persistently working to split the common Eurasian space into a network of "exclusive clubs" and military blocs that would serve to contain our countries' development and harm their interests. This won't work. Chinese President Xi arrives in Moscow to meet with the Russian President Putin. pic.twitter.com/4GLcnf3nkt — Clash Report (@clashreport) March 20, 2023 Putin concluded near the end of his letter, "We appreciate the well-balanced stance on the events in Ukraine adopted by the PRC, as well as its understanding of their historical background and root causes." He emphasized: "We welcome China's readiness to make a meaningful contribution to the settlement of the crisis." The NY Times notes based on Chinese state media that Xi as accompanied to Moscow by "senior officials including Wang Yi, China’s highest ranking diplomat; Foreign Minister Qin Gang; and Cai Qi, director of the General Office of the Chinese Communist Party’s Central Committee." Ukraine at the same time issued a call for Russia to remove all of its troops, saying this is the proper formula for the successful implementation of China's 'Peace Plan'. Tyler Durden Mon, 03/20/2023 - 09:34.....»»
Financial News: Anger and tears from shocked Credit Suisse staff after historic UBS takeover
For Credit Suisse's 50,000 employees, many questions remain......»»
The Ratings Game: Meta’s pivot from ‘irresponsible’ metaverse spending earns stock an upgrade
Meta Platforms Inc.'s stock recently secured an upgrade from a Wall Street analyst who applauded the company's increased discipline......»»
: Beyond ‘Where’s the beef?’–older people are powerful consumers, ignore them at your peril
According to AARP, the 50-plus age consumer contributes $8.3 trillion to the U.S. economy each year......»»
Market Snapshot: Stocks move higher after Credit Suisse deal as investors await Fed decision
Stocks moved mostly higher in cautious trading after the takeover by UBS of Credit Suisse, as investors assessed what bank woes mean for the Fed's rate path......»»
Bond Report: Treasury yields bounce back as markets assess health of global banking system
Treasury yields reverse an earlier run of risk aversion that had sent investors into perceived havens......»»
Cryptocurrency Market Set for More Upside After Bank Problems: Bernstein
The current environment is the perfect setting for the decentralized financial system to stand out as an alternative to traditional banking, the report said......»»
First Mover Americas: Bitcoin, as Safety Play, Climbs Past $28K
The latest price moves in bitcoin (BTC) and crypto markets in context for March 20, 2023. First Mover is CoinDesk’s daily newsletter that contextualizes the latest actions in the crypto markets......»»
Credit Suisse, UBS shares plunge after takeover announcement
Shares of Credit Suisse plunged 60.5% on Monday after banking giant UBS said it would buy its troubled Swiss rival for almost $3.25 billion.Shares of Credit Suisse plunged 60.5% on Monday after banking giant UBS said it would buy its troubled Swiss rival for almost $3.25 billion......»»
: Norwegian Cruise CEO Frank Del Rio stepping down, company names Harry Sommer as successor
Norwegian Cruise Line Holdings Ltd. NCLH said Monday Chief Executive Frank J. Del Rio has decided to retire and step down from this position as president and from the board of directors effective June 30. The company named Harry J. Sommer, who has been chief executive of Norwegian Cruise Line since 2020, as its new CEO effective July 1. Del Rio will remain in a consultant capacity as senior adviser to the board through 2025. Sommer will be replaced by David J. Herrera at NCL. Herrera has served as chief consumer sales and marketing officer of NCL since 2021. Del Rio spent three decades in the cruise business and has led the company since 2015. Sommer, 55, has more than 30 years of cruise experience. The stock was slightly higher premarket, but has fallen 37% in the last 12 months, while the S&P 500 SPX has fallen 12%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
: Oatly inks deal to provide oat milk for McDonald’s coffee drinks in Austria
Oatly Group AB OTLY said Monday it inked a partnership deal with McDonald’s Austria, a unit of McDonald’s Corp. MCD , to offer Oatly Barista Edition dinks to McDonald’s McCafé locations in Austria. Oatly Barista is the first oat drink product ever to be made available to McCafé locations across Austria, the company said. Financial terms of the deal were not disclosed. Oatly stock is down 2.6% in premarket trade. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
: SVB Financial discloses ‘significant interest’ for assets as it navigates bankruptcy process
SVB Financial SIVB , the former parent of Silicon Valley Bank, on Monday said it’s received “significant interest” from prospective buyers in a reorganization effort underway with financial adviser Centerview Partners LLC. The company also said it filed “first-day motions” in U.S. Bankruptcy Court to support operations of SVB Capital and SVB Securities. On March 14, SVB Financial Group filed a voluntary petition for a court-supervised reorganization under Chapter 11 of the U.S. bankruptcy code, after a run on deposits caused Silicon Valley Bank to fail. Silicon Valley Bank now operates as Silicon Valley Bridge Bank, N.A. under the jurisdiction of the Federal Deposit Insurance Corp., and is no longer affiliated with SVB Financial. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
: BioNTech inks deal with OncoC4 to develop cancer treatments
BioNTech SE BNTX will pay $200 million to the privately held OncoC4 Inc. as part of a deal to develop and commercialize OncoC4’s monoclonal antibody treatment that is being tested in several cancers. OncoC4 is also eligible for milestone payments and royalties, though the terms were not disclosed in the news release. BioNTech’s stock is down 13.7% so far this year, while the S&P 500 SPX is up 2.4%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
: FleetCor stock rises after announcement of strategic review
Shares of FleetCor Technologies Inc. FLT were headed more than 1% higher in premarket trading Monday after the business-payments company said it would conduct a strategic review. Fleetcor will engage in “a review of its portfolio and business configuration, with the goal of driving enhanced shareholder value,” according to a Monday morning press release. “The portfolio review will assist the board as it considers various strategic alternatives, including but not limited to the possible separation of one or more of the company’s businesses.” The review is expected to wrap up by the end of 2023. Additionally, Fleetcor announced Monday that it has “entered into a cooperation agreement” with shareholder D.E. Shaw. As part of their agreement, the company has appointed former RevSpring CEO Rahul Gupta to its board and will add one more mutually agreed-upon board director down the line.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
: FDIC extends bidding for Silicon Valley Private Bank, Silicon Valley Bridge Bank
The Federal Deposit Insurance Corp. said Monday it’s extending the bidding for former units and assets of Silicon Valley Bank, which has been renamed Silicon Valley Bridge Bank since the government took it over on March 10. “There has been substantial interest from multiple parties, and the FDIC and the bidders need more time to explore all options in order to maximize value and achieve an optimal outcome,” the FDIC said. The FDIC said it will allow parties to submit separate bids for Silicon Valley Bridge Bank and its Silicon Valley Private Bank units. Qualified, insured banks, and qualified, insured banks in alliance with nonbank partners will be able to submit whole-bank bids or bids on the deposits or assets of the institutions, the FDIC said. Bank and non-bank financial firms will be permitted to bid on the asset portfolios. Bids for Silicon Valley Private Bank are due by 8 pm Eastern time on March 22, and on March 24 for Silicon Valley Bridge Bank.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
: Nurix’s stock rallies on Gilead’s option
Shares of Nurix Therapeutics Inc. NRIX gained about 6% in premarket trading on Monday after Gilead Sciences Inc. GILD said it exercised the option to exclusively license Nurix’s targeted protein degrader molecule, which is being considered as a tool to treat inflammatory conditions like rheumatoid arthritis. Per the terms, Gilead will pay $20 million upfront, with an additional $425 million in potential milestone payments. The companies first partnered in 2019, with Gilead making a $45 million upfront payment and giving Nurix the potential of $2.3 billion in additional milestones. Nurix’s stock is down 17.9% this year, while the S&P 500 SPX is up 2.4%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»
Deep Dive: NYCB’s sweetheart deal with the FDIC may take a dividend cut off the table
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: Bed Bath & Beyond stock falls below $1 after retailer calls for shareholder approval of reverse stock split
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: Foot Locker stock slides premarket as weak guidance offsets Q4 beat
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WuXi AppTec Reports Record Results in 2022
Revenue Up 71.8% Year-Over-Year to RMB39,355 Million Net Profit Attributable to Owners of the Company Up 72.9% Year-Over-Year to RMB8,814 Million Diluted Earnings Per Share (EPS) Up 63.0% Year-Over-Year to RMB2.82 Adjusted Non-IFRS Net Profit Attributable to Owners of the Company Up 83.2% Year-Over-Year to RMB9,399 Million Adjusted Non-IFRS Diluted EPS Up 81.7% Year-Over-Year to RMB3.18[1] Operating Cash Flow Up 133.6% Year-Over-Year to RMB10,230 Million, and Free Cash Flow Turned Positive Company to Pay Cash Dividend of RMB2,644 Million, 30% of 2022 Net Profit SHANGHAI, March 20, 2023 /PRNewswire/ -- WuXi AppTec (stock code: 603259.SH / 2359.HK), a global company that provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical, biotech and medical device industries to advance discoveries and deliver groundbreaking treatments to patients, is pleased to announce its annual results for the year ending December 31, 2022 ("Reporting Period"). This release provides a summary of the results and is not intended to be a comprehensive report. For additional information, please refer to the 2022 Annual Report and other relevant announcements published on the websites of the Shanghai Stock Exchange (www.sse.com.cn) and the Stock Exchange of Hong Kong (www.hkexnews.hk), and the designated media for dissemination of the relevant information. Investors are advised to exercise caution and be aware of the investment risks in trading Company shares. All financial information disclosed in this press release is prepared based on International Financial Reporting Standards (IFRS), in currency of RMB. The 2022 Annual Report of the Company has been audited. [1] In 2021 and 2022, WuXi AppTec had a fully-diluted weighted average share count of 2,937,716,887 and 2,954,165,418 ordinary shares, respectively. 2022 Financial Highlights In 2022, we achieved record revenue growth in a very challenging operating environment. Revenue grew 71.8% year-over-year to RMB39,355 million. This is primarily attributable to the Company's continuing strong execution of our unique Contract Research, Development and Manufacturing Organization (CRDMO) business model to achieve synergy and strong growth: WuXi Chemistry revenue grew 104.8% to RMB28,850 million and adjusted non-IFRS gross profit grew 106.6% to RMB11,882 million, with a gross profit margin of 41.2%. WuXi Testing revenue grew 26.4% to RMB5,719 million and adjusted non-IFRS gross profit grew 37.3% to RMB2,101 million, with a gross profit margin of 36.7%. WuXi Biology revenue grew 24.7% to RMB2,475 million and adjusted non-IFRS gross profit grew 22.5% to RMB1,013 million, with a gross profit margin of 40.9%. WuXi ATU revenue grew 27.4% to RMB1,308 million and adjusted non-IFRS gross profit was RMB(77) million, with a gross profit margin of -5.9% WuXi DDSU revenue declined 22.5% to RMB970 million and adjusted non-IFRS gross profit declined 48.7% to RMB293 million, with a gross profit margin of 30.2%. Unit: RMB million Segment Revenue Change AdjustedNon-IFRS Gross Profit Change Adjusted Non-IFRS Gross Profit Margin WuXi Chemistry 28,849.73 104.8 % 11,881.96 106.6 % 41.2 % WuXi Testing 5,718.65 26.4 % 2,100.73 37.3 % 36.7 % WuXi Biology 2,475.15 24.7 % 1,013.14 22.5 % 40.9 % WuXi ATU 1,308.00 27.4 % (76.69) Note1 (5.9) % WuXi DDSU 969.63 (22.5) % 293.10 (48.7) % 30.2 % Others 33.61 22.1 % 15.71 19.9 % 46.7 % Total 39,354.78 71.8 % 15,227.95 75.0 % 38.7 % Notes: 1. Adjusted Non-IFRS Gross Profit of WuXi ATU was RMB(76.69) million in 2022, compared to RMB11.43 million in 2021, a decrease of RMB88.11 million.2. Any sum of the data above that is inconsistent with the total is due to rounding. IFRS gross profit increased 75.5% year-over-year to RMB14,507 million. Gross profit margin was 36.9%.[2] Adjusted non-IFRS gross profit increased 75.0% year-over-year to RMB15,228 million. Adjusted non-IFRS gross margin was 38.7%. Net profit attributable to owners of the Company increased 72.9% year-over-year to RMB8,814 million. Adjusted non-IFRS net profit attributable to owners of the Company increased 83.2% year-over-year to RMB9,399 million. Diluted EPS increased 63.0% year-over-year to RMB2.82, while adjusted diluted non-IFRS EPS increased by 81.7% year-over-year to RMB3.18. Company's Board of Directors decided to distribute RMB 8.9266 cash dividend for every 10 shares (30% payout ratio, RMB2,644 million cash dividend in total). [2] If prepared under Accounting Standard for Business Enterprises of PRC, the gross profit grew 76.6% year-over-year to RMB14,678 million. Gross profit margin was 37.3%. 2022 Business Operation Highlights - We continued to expand our customer base globally. In 2022, demand for our services was very strong and we grew our customer base to more than 5,950 active accounts by adding over 1,400 new customers. We continued to optimize our cross-platform synergies to better serve our customers worldwide, strengthen our unique competitive advantage as a fully integrated Contract Research, Development and Manufacturing Organization (CRDMO) and Contract Testing, Development and Manufacturing Organization (CTDMO) platform, and provide one-stop services for our clients from discovery to development and manufacturing. Revenue growth was demonstrated across our expanding global customer base: Revenue from US-based customers grew 113% to RMB25,884 million; revenue from Europe-based customers grew 19% to RMB4,432 million; revenue from China-based customers grew 30% to RMB7,526 million; and revenue from other regions grew 23% to RMB1,512 million. We remain focused on delivering high quality services with great efficiency to retain loyal customers for the long term. During the Reporting Period, revenue from existing clients grew 77% to RMB37,781 million and new clients contributed RMB1,573 million in revenue. During the Reporting Period, revenue from the top 20 global pharmaceutical companies grew 174% to RMB18,421 million; revenue generated from all other customers grew 30% to RMB20,934 million. Our unique positioning across the pharmaceutical development value chain drove our "follow-the-customer" and "follow-the-molecule" strategies and enhanced synergies across our business segments. Customers using services from multiple business units contributed RMB36,736 million in revenue, growing 87% year-over-year. - WuXi Chemistry: CRDMO integrated business model drove revenue doubled Revenue grew 104.8% to RMB28,850 million and adjusted non-IFRS gross profit grew 106.6% to RMB11,882 million, with a gross margin of 41.2%. Excluding COVID-19 commercial projects, WuXi Chemistry revenue grew strongly by 39.7%. Revenue from new modalities-related services (TIDES) grew 158.3% to RMB2,037 million. Revenue from discovery chemistry services ("R") grew 31.3% to RMB7,213 million. i. Our industry-leading small molecule drug discovery platform delivered more than 400,000 custom synthesized new compounds to our clients in the past twelve months. Through our small molecule discovery services, we enabled our customers to accelerate their research while generating opportunities for our downstream business units. As part of our "follow-the-customer" and "follow-the-molecule" strategies, we established trusted partnerships with our global customers, supporting the rapid and sustainable growth of our CRDMO business.ii. We continued executing our "long-tail" strategy. Demand from "long-tail" customers in small molecule and new modality-related discovery services continued to grow. Revenue from development and manufacturing (D&M) services grew 151.8% to RMB21,637 million. i. During the Reporting Period, we won 973 new molecules to our D&M pipeline, including 1 new molecule at the commercial stage. To date, our D&M pipeline consists of 2,341 molecules, including 50 in commercial stage, 57 in phase III, 293 in phase II and 1,941 in phase I and pre-clinical stages.ii. D&M services for new modalities is gaining strong momentum. During the Reporting Period, the number of TIDES (mainly oligo and peptides) D&M clients increased 81% to 103 customers, and the number of TIDES molecules increased 91% to 189 molecules. Revenue from TIDES D&M business grew 337% to RMB1,578 million. Our TIDES business has a unique end to end CRDMO platform, enabling R&D and production of multiple complex conjugates. By Feb. 2023, we have in total 27 oligo production lines, over 10,000 liter peptide solid-phase synthesizers, and an R&D team of over 1,000 people. Our late-stage and commercial project delivery capabilities are favored by customers, supporting large scale production with industry leading speed. Furthermore, our integrated API plus DP platform have completed 16 CMC projects in 2022. We continued our capacity expansion to meet customer demands. During the Reporting Period, we began operations in Changzhou Phase 3 facility, Changshu facility and our Wuhan campus, which further enhanced our global integrated CRDMO platform capabilities and capacities. We continued the design and construction of facilities in Changzhou and Wuxi city in China, Delaware in the U.S. and Tuas in Singapore, aiming to better serve our global customers' future needs. Three sites located in Changzhou, Shanghai Waigaoqiao and Wuxi city were awarded "Silver" sustainability ratings by EcoVadis with excellent results, representing a leading position in the industry. - WuXi Testing: strong growth driven by lab testing services Revenue from WuXi Testing grew 26.4% to RMB5,719 million and adjusted non-IFRS gross profit grew 37.3% to RMB2,101 million, with a gross margin of 36.7%. Revenue from lab testing services grew 36.1% year-over-year to RMB4,144 million. i. The Company provides a full range of laboratory testing services for our customers, including drug metabolism and pharmacokinetics (DMPK), toxicology, and bioanalysis for drug development testing as well as medical device testing. We provide customers with high-quality services, realize "one report for global submission," and enable customers to save time, reduce costs and increase efficiency. By maintaining close collaborative relationships with our customers based on our "follow-the-molecule" and "follow-the-customer" strategies, existing customers account for over 60% of our customer base. We leveraged our integrated WuXi AppTec Investigational New Drug (WIND) program to generate preclinical data package and prepare global regulatory submissions of investigational new drug (IND), expediting the IND application process for many customers worldwide.ii. Drug safety evaluation services achieved strong revenue growth of 46% year-over-year. We maintained our industry-leading position in Asia Pacific for drug safety evaluation services that meet global regulatory requirements.iii. Our largely US-based medical device testing business has turned around and grew 33% year-over-year.iv. On the capacity expansion side, 55,000 square meters laboratory are under construction in Suzhou and Qidong for 2023 delivery. Our clinical CRO & SMO (Site Management Organization) reached a revenue of RMB1,575 million, representing year-over-year growth of 6.4%, due in part to the impacts of COVID-19 pandemic in many cities across China in 2022. v. For clinical CRO, despite challenges in 2022, the Company provided services to approximately 200 projects, enabling our customers to obtain 15 IND approvals.vi. For SMO, the Company maintained No.1 leadership position in China and continued to grow. Our SMO business maintained strong growth amid multiple rounds of lockdown in 2022, and continued to gain market share in multiple therapeutic areas (lung cancer, breast cancer, dermatology, cardiovascular disease, ophthalmology, rheumatology, and nervous system etc.). As of the end of 2022, our SMO business maintained approximately 4,700 staff across around 150 cities in China, providing services at more than 1,000 hospitals. During the Reporting Period, revenue from our SMO business grew 23.5% and backlog grew 35.6%. In 2022, our SMO business supported 35 new drug approvals for clients.vii. Clinical CRO and SMO businesses leverage the strength of our Lab Testing platform to drive conversion. By leveraging our strong pre-clinical testing services, we have successfully converted 17 preclinical projects to clinical projects in 2022. - WuXi Biology: demand for our broad biology services drove growth with strong contribution from new modalities related services Revenue from WuXi Biology grew 24.7% to RMB2,475 million and adjusted non-IFRS gross profit grew 22.5% to RMB1,013 million, with a gross margin of 40.9%. Although revenue growth in the second quarter was temporarily impacted by the ongoing effects of the COVID-19 epidemic in Shanghai, business recovered in the second half due to the dedication of our employees. The Company has one of the largest discovery biology enabling platform, with more than 3,000 experienced scientists who provide comprehensive biology services covering all major stages and therapeutic areas of drug discovery. The Company has established 3 centers of excellence for non-alcoholic steatohepatitis (NASH), anti-viral, neuroscience and aging. Both our cancer discovery service and our rare and immune disease service continued to grow, providing customers with integrated high-quality services from target discovery to clinical biomarker detection. The Company has a leading DNA Encoded Library (DEL) and compound generation platform with over 90 billion compounds, 6,000 unique proprietary scaffolds and 35,000 building blocks, providing these services for more than 1,500 customers. A ...Full story available on Benzinga.com.....»»
AppTech Payments Corp. Reports Fourth Quarter and Fiscal Year 2022 Results
CARLSBAD, Calif., March 20, 2023 (GLOBE NEWSWIRE) -- AppTech Payments Corp. ("AppTech") (NASDAQ:APCX), an innovative Fintech company powering seamless, omni-channel commerce between businesses and consumers, today announced results for its fourth quarter and fiscal year ended December 31, 2022. The financial statements and 10-K are available on sec.gov. Fourth Quarter and Fiscal Year 2022 Financial Highlights 4Q22 revenues were $108,000, an increase of 14% from 4Q21, driven by larger processing volumes. Fiscal year 2022 revenues were $450,000, an increase of 27% from fiscal year 2021, driven primarily by higher transaction volume and the onboarding of additional merchant accounts. Cash balance was $3.5 million as of December 31, 2022. Recent Business Highlights Launched Commerse, the first-to-market, cloud-based Commerce Experiences-as-a-Service platform backed by the Company's mobile commerce patents, core partner technology and other related internal intellectual property. Commerse allows customers to incorporate a customizable mix of products and services to create flexible, rich, personalized payment and banking experiences for end users. Expanded its intellectual property rights, Software-as-a-Service (SaaS), Payments-as-a-Service (PaaS) and Banking-as-a-Service (Baas) offerings, and global reach through strategic acquisitions and complimentary partnerships. Continued to strengthen the management ...Full story available on Benzinga.com.....»»
Yunji Announces Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results
Yunji Announces Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results.....»»
LightInTheBox Reports Fourth Quarter and Full Year 2022 Financial Results
SINGAPORE, March 20, 2023 /PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE:LITB) ("LightInTheBox" or the "Company"), a cross-border e-commerce platform that delivers products directly to consumers around the world, today announced its unaudited and unreviewed financial results for the fourth quarter and full year ended December 31, 2022. Fourth Quarter and Full Year 2022 Financial Highlights Three Months Ended Year-over- Twelve Months Ended Year-over- December 31, December 31, Year % December 31, December 31, Year % In millions, except percentages 2021 2022 Change 2021 2022 Change Total revenues $ 113.2 $ 156.4 38.2 % $ 446.1 $ 503.6 12.9 % - Apparel sales $ 77.9 $ 123.9 59.2 % $ 274.2 $ 399.5 45.7 % Apparel sales/total revenues 68.8 % 79.3 % 61.5 % 79.3 % Gross margin 47.2 % 53.9 % 46.3 % 54.6 % Net income/ (loss) $ 8.7 $ (48.3) $ 13.5 $ (56.6) Adjusted EBITDA $ 16.2 $ (3.8) $ 27.9 $ (9.5) As of December 31, As of December 31, In millions 2021 2022 Cash, cash equivalents and restricted cash $ 59.6 $ 94.6 Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, "We are pleased to end 2022 with a solid quarter. However, we took a one-off non-cash impairment charge on an equity investment of $56 million and an income tax credit of $13 million from the reversal of the unrecognized tax benefits on this equity investment, for a net impact of $43 million. The impairment charge was made due to the extreme and rapid deterioration of the operations of the investee in the last quarter of 2022, from the adverse change of market conditions. The impairment has no impact on our own business operations, which, as demonstrated by our operating performance, remain healthy and continue to grow." "Despite multiple headwinds, including global inflation, economic uncertainty that made many consumers more cautious in their spending and pandemic-related supply disruptions, total revenues increased by 38% year-over-year to a record high of $156 million for the fourth quarter of 2022. This brought yearly revenue above $500 million, and apparel sales to approximately $400 million, for the first time in our history, and our year end cash, cash equivalents and restricted cash increased to $95 million. We also continued to improve gross margin from 46% a year ago to 55% in 2022. This remarkable performance was primarily due to our wide selection of value-for-money products, our quality customer base, which consists of a vital generation, middle class consumers 40-year-old and older who have higher disposal income, and our on-going R&D efforts to improve our efficiency. Going forward, we will continue to invest in R&D and optimize user experience. We will also continue to offer our target customers affordable, comfortable, aesthetically pleasing and visually interesting clothing, that can bring happiness and vibrancy to their daily life. We are confident in our ability to navigate through challenging times, stand out in the competitive market, and deliver long term value to our shareholders." Added by Mr. He. Fourth Quarter 2022 Financial Results Total revenues increased by 38.2% year-over-year to $156.4 million from $113.2 million in the same quarter of 2021. Sales from apparel increased by 59.2% to $123.9 million in the fourth quarter of 2022, compared with $77.9 million in the same quarter of 2021. Revenues from apparel represented 79.3% of total revenues in the fourth quarter of 2022, and 68.8% in the same quarter of 2021. Total cost of revenues was $72.0 million in the fourth quarter of 2022, compared with $59.8 million in the same quarter of 2021. Gross profit in the fourth quarter of 2022 was $84.4 million, compared with $53.4 million in the same quarter of 2021. Gross margin was 53.9% in the fourth quarter of 2022, compared with 47.2% in the same quarter of 2021. The increase in gross margin was a result of the increase in apparel sales percentage from 68.8% to 79.3% that has higher margins. Total operating expenses in the fourth quarter of 2022 were $89.3 million, compared with $60.9 million in the same quarter of 2021. Fulfillment expenses in the fourth quarter of 2022 were $8.9 million, compared with $7.5 million in the same quarter of 2021. As a percentage of total revenues, fulfillment expenses were 5.7% in the fourth quarter of 2022, compared with 6.7% in the same quarter of 2021 and 5.9% in the third quarter of 2022. Selling and marketing expenses in the fourth quarter of 2022 were $72.3 million, compared with $41.1 million in the same quarter of 2021. As a percentage of total revenues, selling and marketing expenses were 46.2% for the fourth quarter of 2022, compared with 36.3% in the same quarter of 2021 and 43.9% in the third quarter of 2022. G&A expenses in the fourth quarter of 2022 were $8.3 million, compared with $12.5 million in the same quarter of 2021. As a percentage of total revenues, G&A expenses were 5.3% for the fourth quarter of 2022, compared with 11.1% in the same quarter of 2021 and 8.5% in the third quarter of 2022. Included in G&A expenses, R&D expenses in the fourth quarter of 2022 were $5.3 million, compared with $4.9 million in the same quarter of 2021 and $4.8 million in the third quarter of 2022. Loss from operations was $4.9 million in the fourth quarter of 2022, compared with $7.5 million in the same quarter of 2021. Other expense, net was $8 thousand for the fourth quarter of 2022, compared with other income, net of $21.7 million in the same quarter of 2021. Included in other income / (expense), net, change in fair value on our equity investment was $nil for the fourth quarter of 2022, compared with $21.7 in the same quarter of 2021. The gain in fair value change on our equity investment, after respective income tax of $5 million, was $16.7 million for the fourth quarter of 2021. Impairment loss on investment in the fourth quarter of 2022 was $56.1 million, compared with $nil in the same quarter of 2021. Impairment loss was made on our equity investment in Shenzhen Maikailai Technologies Co., Ltd ("Maikailai"). Maikailai is a live stream retailer that sells personal cleaning and beauty products, and household cleaning products, etc. The impairment charge was made due to the adverse change of market conditions, which caused the extreme and rapid deterioration of the operations of Maikailai in the last quarter of 2022 and are not expected to recover. Income tax expense / (benefit) in the fourth quarter of 2022 was a benefit of $12.7 million, compared with $5.5 million of expense in the same quarter of 2021. The income tax benefit in the fourth quarter of 2022 was due to the reversal of the unrecognized tax benefits, and the income tax expense in the fourth quarter of 2021 was accrued related to the fair value change on our equity investment. Net loss was $48.3 million in the fourth quarter of 2022, compared with net income of $8.7 million in the same quarter of 2021. Net loss per American Depository Share ("ADS") was $0.43 in the fourth quarter of 2022, compared with net income per ADS of $0.08 in the same quarter of 2021. Each ADS represents two ordinary shares. The diluted net loss per ADS in the fourth quarter of 2022 was $0.43 compared with the diluted net income per ADS of $0.07 in the same quarter of 2021. In the fourth quarter of 2022, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 113,250,066. Adjusted EBITDA was negative $3.8 million in the fourth quarter of 2022, compared with income of $16.2 million in the same quarter of 2021. As of December 31, 2022, the Company had cash and cash equivalents and restricted cash of $94.6 million, compared with $59.6 million as of December 31, 2021. Full ...Full story available on Benzinga.com.....»»
PDD Holdings Announces Fourth Quarter 2022 and Fiscal Year 2022 Unaudited Financial Results
PDD Holdings Announces Fourth Quarter 2022 and Fiscal Year 2022 Unaudited Financial Results.....»»
FOOT LOCKER, INC. REPORTS FOURTH QUARTER 2022 RESULTS; COMPANY TO OUTLINE NEW LONG-TERM GROWTH STRATEGY AT INVESTOR DAY
Total sales decreased by 0.3%; Comparable-store sales increased 4.2% Fourth quarter EPS of $0.20 and Non-GAAP EPS of $0.97 Launching new "Lace Up" strategy with updated financial targets Reset year in 2023 expected to result in Non-GAAP EPS of $3.35-$3.65 Beyond 2023, new strategies to drive low- to mid-twenties adjusted EPS growth NEW YORK, March 20, 2023 /PRNewswire/ -- Foot Locker, Inc. (NYSE:FL), the New York-based specialty athletic retailer, today reported financial results for its fourth quarter and fiscal year ended January 28, 2023. The Company will host an Investor Day starting at 8:30 a.m. Eastern Time where it will review these results and outline a new long-term growth strategy. "Our team delivered a great finish to the year with strong fourth quarter results that capitalized on resilient Holiday demand and a compelling assortment and inventory position from our brand partners," said Mary Dillon, President and Chief Executive Officer. "We are entering 2023 with a focus on resetting the business – simplifying our operations and investing in our core banners and capabilities to position the Company for growth in 2024 and beyond." Ms. Dillon continued, "We are proud of Foot Locker's role in influencing and serving the global sneaker community, and next year, we will celebrate the 50th anniversary of the iconic Foot Locker brand. We are incredibly excited to introduce our "Lace Up" plan with a new set of strategic imperatives and financial objectives that are designed to set us up for success for the next 50 years." Fourth Quarter Results Comparable-store sales grew by 4.2%, driven by increased traffic and improved access to high-quality inventory, resulting in broad-based strength across brands and regions. Total sales decreased by 0.3%, to $2,334 million, compared with sales of $2,341 million in the fourth quarter of 2021. Excluding the effect of foreign exchange rate fluctuations, total sales for the fourth quarter increased by 3.6%. Please refer to the Sales by Banner table below for detailed sales performance by banner and region Gross margin declined by 290 basis points compared with the prior-year period, driven mainly by higher markdowns on increased promotional activity across the industry. SG&A decreased by 10 basis points as a percentage of sales compared with the prior year, with savings from the cost optimization program, offset by inflation. Net income decreased to $19 million as compared with $103 million in the fourth quarter of fiscal 2021. Non-GAAP net income decreased to $92 million from $148 million in the fourth quarter of fiscal 2021. EPS decreased to $0.20 per share, versus $1.02 in the fourth quarter of fiscal 2021. Non-GAAP EPS decreased to $0.97 per share compared with EPS of $1.46 in the fourth quarter of fiscal 2021. Balance Sheet At quarter-end, the Company's cash and cash equivalents totaled $536 million, while debt on its balance sheet was $452 million. The Company's total cash position, net of debt, was $84 million, as compared with $347 million last year. As of January 28, 2023, the Company's merchandise inventories were $1.6 billion, 29.8% higher than at the end of the fourth quarter last year. Dividend and Share Repurchases During the fourth quarter of 2022, the Company paid a quarterly dividend of $0.40 per share. For full-year 2022, the Company repurchased 4.1 million shares for a total of $129 million and paid a total of $150 million in dividends. The Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.40 per share, which will be payable on April 28, 2023, to shareholders of record on April 14, 2023. Store Base Update During the fourth quarter, the Company opened 21 new stores, remodeled or relocated 45 stores, and closed 101 stores. As of January 28, 2023, the Company operated 2,714 stores in 29 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 159 franchised stores were operating in the Middle East and Asia. Asia Business Model As part of its efforts to simplify its business model and focus on core banners and regions, the Company announced today that it is transforming its business model in Asia through the following actions: Closing its stores and ecommerce in Hong Kong and Macau; Converting its current owned and operated stores and ecommerce in Singapore and Malaysia to a license model; Continuing to operate stores in South Korea; and Continuing to pursue growth in the region through license partners. MAP Active, Indonesia's leading lifestyle retailer, who already partners with the Company in Indonesia and the Philippines, will take over the Company's store and ecommerce operations in Singapore and Malaysia, and seek to grow in those markets and new markets in the region over time. 2023 Financial Outlook Fiscal year 2023 represents the 53 weeks ending February 3rd, 2024. The Company's full year 2023 outlook, which includes the 53rd week, is summarized in the table below. Sales Change Down 3.5% to 5.5% including ~1% from the extra week Comparable Sales Change Down 3.5% to 5.5% Square Footage Change Down ~4% Licensing Revenue ~$20 million Gross Margin 30.8% to 31.0% SG&A Rate 22.6% to 22.8% D&A ~$205 million Interest ~$12 million Tax Rate 31.5% to 31.7% Non-GAAP EPS $3.35-$3.65 including $0.15 from the extra week Adj. Capital Expenditures* ~$305 million * Adjusted Capex includes capitalized Technology expense The Company provides earnings guidance only on a non-GAAP basis and does not provide a reconciliation of the Company's forward-looking capital expenditures and diluted earnings per share guidance to the most directly comparable GAAP financial measures because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations. Investor Day At today's Investor Day, senior management will outline the Company's new "Lace Up" plan, designed to drive the next phase of Foot Locker, Inc.'s growth and create value for all of the Company's stakeholders, including team members, communities, and investors. The "Lace Up" plan will be guided by the following set of new strategic imperatives: Expand Sneaker Culture. Serve more sneaker occasions, provide more choice, and drive greater distinction. Power Up the Portfolio. Create more distinction among banners, including re-launching the Foot Locker brand, and transforming the Company's real estate footprint by opening new formats, shifting off-mall, and closing underperforming stores. Deepen Our Relationship with Customers. Reset the Company's loyalty program and elevate the customer relationship through enhanced analytical capabilities. Be Best-in-Class Omni. Improve the customer experience online through the full shopping journey. In connection with its new strategic direction, the Company has set the following long-term financial targets for fiscal years 2024 through 2026. Financial Metric Target* Total Sales Growth 5% to 6% Comparable Sales Growth 3% to 4% Square Footage Growth Approximately 5% Adj. EBIT Margin Rate 8.5% to 9% by 2026 Adj. EPS Growth Low- to mid-twenties * Growth rates are annual growth rates from 2023 on a 52-week basis WebcastThe Company will host an Investor Day starting at 8:30 a.m. ET today, March 20, 2023 to review these results and outline a new long-term growth strategy. This meeting may be accessed live by registering for the virtual webcast at foot-locker-2023-investor-day-virtual or via the Investor Relations section of footlocker-inc.com. Please log on to the website 15 minutes prior to the meeting to register. A replay of the meeting will be available approximately twenty four hours following the end of the meeting via webcast at footlocker-inc.com. Disclosure Regarding Forward-Looking Statements This report contains forward-looking statements within the meaning of the federal securities laws. Other than statements of historical facts, all statements which address activities, events, or developments that the Company anticipates will or may occur in the future, including, but not limited to, such things as future capital expenditures, expansion, strategic plans, financial objectives, dividend payments, stock repurchases, growth of the Company's business and operations, including future cash flows, revenues, and earnings, and other such matters, are forward-looking statements. These forward-looking statements are based on many assumptions and factors which are detailed in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. For additional discussion regarding risks and uncertainties that may affect forward-looking statements, see "Risk Factors" disclosed in the Company's Annual Report on Form 10-K for the year ended January 29, 2022 filed on March 24, 2022. Any changes in such assumptions or factors could produce significantly different results. The Company undertakes no obligation to update the forward-looking statements, whether as a result of new information, future events, or otherwise. FOOT LOCKER, INC.Consolidated Statements of Operations (unaudited) Periods ended January 28, 2023 and January 29, 2022(In millions, except per share amounts) Fourth Quarter Year-to-Date 2022 2021 2022 2021 Sales $ 2,334 $ 2,341 $ 8,747 $ 8,958 Licensing revenue (1) 3 3 12 10 Total revenue 2,337 2,344 8,759 8,968 Cost of sales 1,632 1,568 5,955 5,878 Selling, general and administrative expenses 521 525 1,903 1,851 Depreciation and amortization 51 55 208 197 Impairment and other 74 75 112 172 Income from operations 59 121 581 870 Interest expense, net (2) (6) (15) (14) Other income / (expense), net (1) (9) 32 (42) 384 Income from continuing operations before income taxes 48 147 524 1,240 Income tax expense 26 45 180 348 Net income from continuing operations 22 102 $ 344 $ 892 Net loss from discontinued operations, net of tax (3) — (3) Net income 19 102 341 892 Net loss attributable to noncontrolling interests — 1 1 1 Net income attributable to Foot Locker, Inc. $ 19 $ 103 $ 342 $ 893 Diluted earnings per share Earnings per share from continuing operations attributable to Foot Locker, Inc. $ 0.24 $ 1.02 $ 3.62 $ 8.61 Net loss per share from discontinued operations, net of tax (0.04) — (0.04) — Net earnings per share attributable to Foot Locker, Inc. $ 0.20 $ 1.02 $ 3.58 $ 8.61 Weighted-average shares outstanding, assuming dilution 94.9 100.6 95.5 103.8 (1) During the fourth quarter of 2022, the Company has changed how it classifies licensing revenue received from partners operating our stores in the Middle East and Asia. These amounts were previously classified as part of other income / (expense), net, accordingly reclassifications have been made to prior period financial statements ...Full story available on Benzinga.com.....»»
Nasdaq, S&P 500 Futures See Tentative Gains As Traders React To Central Bank Interventions: Analyst Says Potential Relief Rally On Horizon
The mood on Wall Street remains tentative, with the index futures pointing to a modestly higher opening. Some of the positive sentiment is attributable to the coordinated action announced by five of the world’s biggest central banks to ease liquidity strain. Cues From Past Week’s Trading: Stocks closed the week ended March 17 mostly higher despite the volatility seen amid the continuing news flow on the banking crisis. The S&P 500 and the Nasdaq Composite indices recorded weekly gains of 1.43% and 4.41%, respectively, while the Dow Industrials in which financial stocks have over 15% weighting edged down 0.15%. See Also: Best Binary Options Strategies The mood in the past week alternated between hope and despair as traders digested the government’s rescue plan to backstop all Silicon Valley Bank deposits, reports of trouble at First Republic Bank (NYSE: FRC) and, subsequently, the private banks’ rescue package for the bank. Issues at Credit Suisse AG (NYSE: CS) also simmered through the week, which culminated in a Swiss National Bank-brokered deal for the bank to be bought by peer UBS Group Inc. (NYSE: UBS) over the weekend. The major indices opened notably lower and moved roughly sideways till late afternoon trading, weighed down by renewed selling in financial stocks. The averages cut their losses in late afternoon trading after reports suggested Switzerland’s central bank will extend a helping hand to Credit Suisse, calming the nerves of traders. U.S. Indices' Performance ...Full story available on Benzinga.com.....»»
ABCAM PLC: Final results for the year ended 31 December 2022
15% Reported Revenue Growth & 8% Constant Exchange Rate Revenue Growth: Demand for Abcam In-house Products Continues CAMBRIDGE, England and WALTHAM, Mass. , March 20, 2023 /PRNewswire/ -- Abcam plc (NASDAQ:ABCM) ('Abcam', the 'Group' or the 'Company'), a global leader in the supply of life science research tools, today announces its results for the year ended 31 December 2022 (the 'period'). SUMMARY PERFORMANCE Year-End 31 December 2022 £m 2021 £m Revenue 361.7 315.4 Gross profit margin, % Adjusted gross profit margin, % 74.8% 75.5% 71.2% 72.2% Operating profit margin, % Adjusted operating profit margin, % Diluted (loss) / earnings per share ('EPS') (£) (2.8%) 21.1% (0.037) 2.3% 19.2% 0.019 Adjusted diluted earnings per share ('EPS') (£) 0.249 0.206 Return on Capital Employed ('ROCE'), % 8.9 % 7.6 % FULL YEAR FINANCIAL HIGHLIGHTS[1] Reported revenue growth of 15%; constant exchange rate ('CER') revenue growth of 8%- In-house revenues, including BioVision and Custom, Products & Licensing, recorded 26% reported revenue growth and 18% CER revenue growth Reported gross profit margin of 74.8%: Adjusted gross profit margin of 75.5%, an increase of 330 basis points from 72.2%, driven by the contribution of in-house revenues, including BioVision and Custom, Products & Licensing Operating loss of £10.1 million impacted by £18.3 million impairment charge on asset held for sale; adjusted operating profit increased 26% to £76.3m, resulting in a 190 basis points increase of adjusted operating profit margin to 21.1% Diluted loss per share of (£0.037) impacted by impairment charge on asset held for sale; adjusted diluted earnings per share increased 21% to £0.249 Return on capital employed increased to 8.9%, a 130-basis point improvement, favourably impacted by efficient capital utilization and higher adjusted operating profits [1] These results include discussion of alternative performance measures which include revenues calculated at Constant Exchange Rates (CER) and adjusted financial measures. CER results are calculated by applying prior period's actual exchange rates to this period's results. Adjusted financial measures are reconciled to the most directly comparable measure prepared in accordance with IFRS in note 3 to the financial statements. BUSINESS HIGHLIGHTS In-house revenues, including BioVision and Custom, Products & Licensing, represent 67% of total sales, an increase of 600 basis points- Academic & Biopharmaceutical customers experienced double-digit percent reported revenue growth, Academic grew mid-single digits and Biopharmaceutical grew double-digit percent on a CER basis Partnering with biopharma, diagnostic and multiplex platform partners continued to generate current and future sources of growth with the number of commercialized antibodies with these partners rising to a total of more than 2,100 To support future growth, we've implemented an Oracle Cloud ERP system, and expanded sites in Waltham, Singapore, and Amsterdam Expanded Life Science Industry experience within the Board of Directors with the appointment of Luba Greenwood, as Non-Executive Director Cancellation of admission to trading on AIM completed and sole Nasdaq listing as of 14 December 2022 FY23 OUTLOOK The Company anticipates reported revenues of approximately £420 million to £440 million, representing 15% to 20% constant exchange rate revenue growth, combined with lower operating expense growth, resulting in adjusted operating profit margin expansion. FY2024 GOAL The Company is reiterating its 2024 revenue goals of £450m-£525m with adjusted operating profit margins of greater than 30%. Commenting on the performance, Alan Hirzel, Abcam's Chief Executive Officer, said: "Our team is dedicated to supporting life science discovery, and the translation of discovery to social impact. In the last ten years, our business has grown revenue at double digit rates because of the trust the market has in our team, our innovation, and our brand. As we look ahead, we can be confident that we have and continue to build a sustainable and profitable growth company. I am grateful to everyone at Abcam for their ongoing efforts through this exciting period. I also thank our customers and partners bringing Abcam into their labs and giving us all the opportunity to demonstrate our company's role in making progress happen together." Analyst and investor meeting and webcast: Abcam will host a conference call and webcast for analysts and investors today at 12:00 GMT/ 08:00 EDT. For details, and to register, please visit corporate.abcam.com/investors/reports-presentations A recording of the webcast will be made available on Abcam's website, corporate.abcam.com/investors The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014. For further information please contact: Abcam + 44 (0) 1223 696 000 Alan Hirzel, Chief Executive Officer Michael Baldock, Chief Financial Officer Tommy Thomas, Vice President, Investor Relations About Abcam plc As an innovator in reagents and tools, Abcam's purpose is to serve life science researchers globally to achieve their mission faster. Providing the research and clinical communities with tools and scientific support, the Company offers highly validated antibodies, assays, and other research tools to address important targets in critical biological pathways. Already a pioneer in data sharing and ecommerce in the life sciences, Abcam's ambition is to be the most influential company in life sciences by helping advance global understanding of biology and causes of disease, which, in turn, will drive new treatments and improved health. Abcam's worldwide customer base of approximately one million life science researchers' uses Abcam's antibodies, reagents, biomarkers, and assays. By actively listening to and collaborating with these researchers, the Company continuously advances its portfolio to address their needs. A transparent program of customer reviews and datasheets, combined with industry-leading validation initiatives, gives researchers increased confidence in their results. Founded in 1998 and headquartered in Cambridge, UK, the Company has served customers in more than 130 countries. Abcam's American Depositary Shares (ADSs) trade on the Nasdaq Global Select Market (NASDAQ:ABCM). For more information, please visit www.abcam.com or www.abcamplc.com Forward-Looking Statements This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by the following words: "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "seek," "believe," "estimate," "predict," "potential," "continue," "contemplate," "possible" or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. They are not historical facts, nor are they guarantees of future performance. Any express or implied statements contained in this announcement that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding Abcam's portfolio and ambitions, and our future results of operations and financial position such as our outlook for FY2023 and performance goals for FY2024 are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: challenges in implementing our strategies for revenue growth in light of competitive challenges; the development of new products or the enhancement of existing products, and the need to adapt to significant technological changes or respond to the introduction of new products by competitors to remain competitive; our customers discontinuing or spending less on research, development, production or other scientific endeavors; failing to successfully identify or integrate acquired businesses or assets into our operations or fully recognize the anticipated benefits of businesses or assets that we acquire; the ongoing COVID 19 pandemic, including variants, continues to affect our business, including impacts on our operations and supply chains; failing to successfully use, access and maintain information systems and implement new systems to handle our changing needs; cyber security risks and any failure to maintain the confidentiality, integrity and availability of our computer hardware, software and internet applications and related tools and functions; failing to successfully manage our current and potential future growth; any significant interruptions in our operations; our products failing to satisfy applicable quality criteria, specifications and performance standards; failing to maintain and enhance our brand and reputation; ability to react to unfavorable geopolitical or economic changes that affect life science funding; failing to deliver on transformational growth projects; our dependence upon management and highly skilled employees and our ability to attract and retain these highly skilled employees; and as a foreign private issuer, we are exempt from a number of rules under the U.S. securities laws and Nasdaq corporate governance rules and are permitted to file less information with the SEC than U.S. companies, which may limit the information available to holders of our American Depositary Shares ("ADS"); and the other important factors discussed under the caption "Risk Factors" in Abcam's Annual Report on Form 20-F for the year ended December 31, 2022 ("Annual Report") with the U.S. Securities and Exchange Commission ("SEC") on March 20, 2023, which is available on the SEC website at www.sec.gov, as such factors may be updated from time to time in Abcam's subsequent filings with the SEC. Any forward-looking statements contained in this announcement speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Abcam disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law. Use of Non-IFRS Financial Measures To supplement our audited financial results prepared in accordance with International Financial Reporting Standards ("IFRS") we present Adjusted Operating Profit, Adjusted Operating Profit Margin, Return on Capital Employed ("ROCE"), Adjusted Diluted Earnings per Share, Total Constant Exchange Rate Revenue ("CER revenue"), Adjusted Selling, General and Administrative expenses, Adjusted Research & Development expenses, and Free Cash Flow, which are financial measures not prepared in accordance with IFRS ("non-IFRS financial measures"). We believe that the presentation of these non-IFRS financial measures provide useful information about our operating results and enhances the overall understanding of our past financial performance and future prospects, allowing for greater transparency with respect to key measures used by management in its financial and operational decision making. These non-IFRS financial measures are supplemental in nature as they include and/or exclude certain items not included and/or excluded in the most directly comparable IFRS financial measures and should not be considered in isolation, or as a substitute for, financial measures prepared in accordance with IFRS. Further, other companies may calculate these non-IFRS financial measures differently than we do, which may limit the usefulness of those measures for comparative purposes. Management believes that the presentation of (a) Adjusted Operating Profit, Adjusted Operating Profit Margin, ROCE, and Adjusted Diluted Earnings per Share, provide useful information to investors and others as management regularly reviews these measures as important indicators of our operating performance and makes decisions based on them, (b) CER revenue provides useful information to investors and others as management regularly reviews this measure to identify period-on-period or year-on-year performance of the business and makes decisions based on it, and (c) Adjusted Selling, General and Administrative expenses and Adjusted Research & Development expenses provide useful information to investors and others as management regularly reviews these measures to identify period-on-period or year-on-year performance of the business and makes decisions based on it, and (d) Free Cash Flow provides useful information to investors and others because management regularly reviews this measure as an important indicator of how much cash is generated by business operations, excluding capital related items, and provides an indication of the amount of cash available for discretionary investing or financing after removing capital related items, and makes decisions based on it. Please see "Non-IFRS Financial Measures" for a reconciliation of non-IFRS financial measures to their most directly comparable IFRS financial measures. We define: Adjusted Operating Profit as profit for the period / year before taking account of finance income, finance costs, tax, exceptional items, share-based payments, and amortization of acquisition intangibles. Exceptional items consist of certain cash and non-cash items that we believe are not reflective of the normal course of our business; and we identify and determine items to be exceptional based on their nature and incidence or by or by their significance ("exceptional items"). As a result, the composition of exceptional items may vary from period to period / year to year. Adjusted Operating Profit Margin as adjusted operating profit calculated as a percentage of revenue. ROCE as Adjusted Operating Profit divided by capital employed, defined as total assets less current liabilities. Adjusted Diluted Earnings per Share as Adjusted Profit for the year divided by the weighted average number of ordinary shares for the purposes of diluted earnings per share. Adjusted Profit for the year used in this calculation is defined as profit for the year plus adjusting items (impairment of intangible assets, system and process improvement costs, acquisition costs, integration and reorganization costs, net of tax effects). Adjusted Diluted Earnings per Share is calculated with an adjustment to the weighted average number of shares outstanding to assume conversion of all potentially dilutive ordinary shares. Adjusted Selling, General and Administrative expenses as reported selling, general and administrative expenses for the year before taking account of exceptional items, share-based payments, and amortization of acquisition intangibles. Adjusted Research & Development expenses as reported research and development expenses for the year before taking account of exceptional items, share-based payments, and amortization of acquisition intangibles. CER as our total revenue growth from one fiscal period / year to the next on a constant exchange rate basis. Free Cash Flow as net cash inflow from operating activities less net capital expenditure, transfer of cash from/(to) escrow in respect of future capital expenditure and the principal and interest elements of lease obligations. Management is unable to present quantitative reconciliations of Adjusted Operating Profit, Adjusted Operating Profit Margin, and CER revenue to their respective most directly comparable IFRS financial measures of Operating Profit, Operating Profit Margin and Reported Revenue on a forward-looking basis, because items that impact these IFRS financial measures are not within our control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on our future financial results. Year-end management report Introduction We are pleased with the continued progress of our business over the last 12 months and the way our people have responded to the evolving impact of COVID-19. Indeed, the challenges presented since the pandemic began over three years ago have served to highlight the resilience of both our employees and our business, as well as the role Abcam and its customers have in advancing critical life science research. We are convinced more than ever that by continuing to develop our technologies, people, and capabilities, and focusing on customer needs, we can extend our market leadership, sustain durable growth, and become an increasingly influential partner within our industry. Demand for our products, and particularly Abcam's in-house developed products, continued to increase as customers continued to focus on their research, enabling greater productivity. Whilst the global pandemic once again impacted revenues – we estimate that overall lab activity is now approaching pre-COVID levels in the Americas and EMEA, our largest geographical markets representing nearly 70% of total sales. In the year ended 31 December 2022, demand for our products continued but revenue growth was interrupted by the implementation of an Oracle Cloud ERP system and COVID-19 headwinds in China. The combination of these factors impacted revenues by approximately £30 million on a reported basis resulting in total revenues increasing 8% CER (15% reported) to £361.7 million. On a reported basis, we incurred a net loss of £8.5 million impacted by £18.3 million impairment charge on an asset held for sale; and diluted EPS declined to -£3.7p. On an adjusted basis, adjusted operating profit increased 26%, to £76.3 million (2021: £60.4m), and adjusted diluted EPS increased 21% to 24.9p (2021: 20.6p). Despite the recent disruptions, the opportunities for growth in our markets remain, and we are committed to our customers and their long-term success thereby driving our future growth. As we near completion of our five-year strategic plan, we thank our approximately 1,800 employees for their ongoing commitment in the delivery of our plans – they are fundamental to the Group's future success. We continue to have a strong balance sheet (net debt of £30.6 million), and we are focused on investments in attractive organic and inorganic growth opportunities, as they arise. Looking forward, with our expanding capabilities, financial position and market opportunities for growth, the Group is well-placed to sustain long-term value creation. Financial review Year ended 31 December Reported revenues Change in reported revenues % CER growth % 2022 £m 2021 £m Catalogue revenue – regional split Americas 147.2 114.8 28 % 16 % EMEA 87.1 82.3 6 % 6 % China 60.3 57.2 5 % (2 %) Japan 17.4 18.7 (7 %) 0 % Rest of Asia Pacific 27.8 23.4 19 % 9 % Catalogue revenue 339.8 296.4 15 % 8 % CP&L revenue1 21.9 19.0 15 % 5 % Total reported revenue 361.7 315.4 15 % 8 % Total revenue – product type In-house 243.9 193.1 26 % 18 % Third party 117.8 122.3 (4 %) (9 %) Total reported revenue 361.7 315.4 15 % 8 % REVENUE We recorded revenue of £361.7 million for the year ended 31 December 2022 (2021: £315.4 m). Revenue grew 8% on a CER basis and reported revenues grew by 15%. During the year, two factors impacted revenue growth. First, the implementation of the new Oracle Cloud ERP system disrupted revenues in September and October. Second, China revenues were impacted by COVID-19 controls and outbreaks. Based on the differences between forecasts and actual results, we estimate the aggregate impact to sales was approximately £30m. We estimate this headwind negatively impacted revenue growth by approximately 10% on a reported and 9% on our CER growth rates." Catalogue revenues: £339.8 million (2021: £296.4m), grew approximately 8% CER and 15% on a reported basis, including BioVision. Catalogue revenue growth by region is as follows: Americas +16% CER / +28% Reported - Excluding Distributors, Americas sales were driven by high-teens digit CER in Biopharma, and high-single digit CER in Academia. Excluding the estimated headwinds on revenues in 2022, Americas grew over 20% CER. EMEA +6% CER / +6% Reported - Excluding Distributors, EMEA sales were driven by high-teens digit CER in Biopharma, and low-single digit CER growth in Academia. Excluding the estimated headwinds on revenues in 2022, EMEA grew low teens CER. China (-2%) CER / +5% Reported - Excluding the estimated headwinds on revenues in 2022, China grew mid-teens digit CER. Rest of Asia Pacific including Japan +5% CER / +7% Reported - Excluding Japan which experienced flat growth (on a CER basis), rest of Asia-Pacific grew high-single digit CER From a served end markets basis, total catalogue sales are as follows: Academia +4% CER / +11% Reported Biopharma +10% CER / +18% Reported Distributors +12% CER / +18% Reported Custom, Products & Licenses revenues: £21.9 million (2021: £19.0m), grew approximately 5% CER and 15% on a reported basis: GROSS MARGIN Reported gross profit margin of 74.8%. Adjusted gross margin increased by 330 basis points, to 75.5%, in the year ended 31 December 2022, reflecting both a favourable movement in product mix towards high margin in-house products, and the positive impact of the BioVision acquisition. OPERATING COSTS Year ended 31 December Reported Adjusted 2022 £m 2021 £m 2022 £m 2021 £m Selling, general & administrative expenses ('SG&A') 224.5 189.7 176.3 150.6 Research & development expenses ('R&D') 56.1 27.8 20.6 16.7 Total operating costs and expenses 280.6 217.5 196.9 167.3 Selling, general and administrative expenses Reported selling, general and administrative expenses of £224.5 million. Adjusted selling, general and administrative expenses increased by £25.7 million, to £176.3 million for the year ended 31 December 2022 compared to £150.6 million for the year ended 31 December 2021. The overall increase was due to an increase in salaries, IT systems and licenses, higher travel costs off a lower prior period, increased headcount for in-house teams and the inclusion of BioVision. Research and development expenses Reported research and development expenses of £56.1 million. Adjusted research and development expenses increased by £3.9 million, to £20.6 million, for the year ended 31 December 2022 compared to £16.7 million for the year ended 31 December 2021. The overall increase was due to increases in salary, and related costs in connection with the BioVision acquisition. On a reported basis, total reported costs were £280.6 million (2021 £217.5m) reflect the adjusting items noted below. ADJUSTING ITEMS Total reported expenses include the following adjusting items: £6.6 million relating to the Oracle Cloud ERP project (2021: £7.0m) £15.7 million from acquisition, integration, and reorganisation charges (2021: £13.0m) £16.9 million relating to the amortisation of acquired intangibles (2021: £9.1m) £18.3 million related to impairment charge for asset held for sale (2021: £nil) £26.2 million in charges for share-based payments (2021: £20.0m) £2.7 million relation to the amortization of fair value adjustments (2021: £3.1m) NET PROFIT Adjusted net profit was £57.7 million (2021: £47.2m) driven by revenue growth, favourable product mix enabling gross margin expansion offsetting operational and innovation investments in the business. Reported net loss was £8.5 million (2021: £4.4m Net Profit). CASH As of 31 December 2022, we had cash and cash equivalents of £89.0 million with drawings of £119.6 million as at the year ended 31 December 2022 resulting in a net debt position of £30.6 million. We assess our liquidity, in part, through an analysis of our working capital together with our other sources of liquidity. As of 31 December 2022, our working capital balance, which is comprised of inventories, trade and other receivables and trade and other payables, was £84.2 million, an increase of £34.5 million from £49.7 million for the year ended 31 December 2021. The increase in working capital during the year ended 31 December 2022, was impacted by: (i) the implementation of the new Oracle Cloud ERP system that disrupted revenues in the second half of the year ended 31 December 2022 (predominantly September and October), and (ii) the impact the COVID-19 pandemic in China, and the related preventative and precautionary measures, had on our business. Specifically, the increases in inventory and accounts receivables were driven by our inability to ship and invoice product sales and collect cash on a timely basis. LOOKING AHEAD We continue to experience good order demand across the business as market activity has largely resumed in most major geographies. Investments we have made, and that we continue to make, are enabling the business to sustain growth and we remain committed to generating revenue of £450 million – £525 million for the year ending 31 December 2024 (calculated at the average exchange rates for the 12 months ended June 2021). In the more immediate term, uncertainty in China arising from COVID-19 remains, yet research and commercial laboratory activity and demand have continued to recover and trading performance year to date is in line with the Board's expectations for January and February 2023. The business' cash generation and financial position continue to provide a foundation from which to pursue opportunities, including innovation, acquisitions and partnerships. We will continue to invest in our business to enable Abcam to provide innovative, trusted, and improved solutions for our customers. While the rate of investment is expected to moderate from recent levels as we pass the peak for this 2019-2024 strategy implementation, we have a continuing appetite to invest in growing Abcam sustainably for the long term. Supported by a clear purpose and strategy, and thanks to the efforts of all our employees and partners, we believe that Abcam is well positioned to continue delivering long-term value for our shareholders. Alan HirzelChief Executive Officer Michael S BaldockChief Financial Officer 20 March 2023 Forward-Looking Statements This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this announcement that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding Abcam's portfolio and ambitions, and our future results of operations and financial position such as our guidance for FY2023 and performance goals for FY2024 are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: potential changes from unaudited management accounts, which are provisional and subject to review, to our audited financial statements; regional or global health pandemic, including the novel coronavirus ("COVID-19"), which has adversely affected elements of our business, and could severely affect our business, including due to impacts on our operations and supply chains; challenges in implementing our strategies for revenue growth in light of competitive challenges; developing new or enhancing existing products, adapting to significant technological change and responding to the introduction of new products by competitors to remain competitive; failing to successfully identify or integrate acquired businesses or assets into our operations or fully recognize the anticipated benefits of such businesses or assets; risks that our customers discontinue or spend less on research, development, production or other scientific endeavors with us; failing to successfully use, access and maintain information systems and implement new systems to handle our changing needs; cyber security risks and any failure to maintain the confidentiality, integrity and availability of our computer hardware, software and internet applications and related tools and functions; failing to successfully manage our current and potential future growth; failing to successfully increase access to the U.S. capital markets, which we anticipated would provide greater liquidity potential than AIM; any significant interruptions in our operations; risks that our products fail to satisfy applicable quality criteria, specifications and performance standards; failing to maintain our brand and reputation; our dependence upon management and highly skilled employees and risks that we are unable to attract and retain these highly skilled employees; and the other important factors discussed under the caption "Risk Factors" in Abcam's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on 20 March 2023, which is available on the SEC website at www.sec.gov, as such factors may be updated from time to time in Abcam's subsequent filings with the SEC. Any forward-looking statements contained in this announcement speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Abcam disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law. Consolidated income statement For the year ended 31 December 2022 Year ended 31 December 2022.....»»
HeartX Launches Web3 Marketplace and Community Aim to Revolutionize Digital Art Industry
Central, Singapore, 20th March, 2023, Chainwire HeartX, previously known as ArteX, a trailblazer in the digital art industry, has recently rebranded and unveiled a groundbreaking web3 marketplace and community that empowers artists, collectors, art consultants and art lovers to redefine the value of digital art. The HeartX platform provides a secure, immersive, and transparent space […] Central, Singapore, 20th March, 2023, Chainwire HeartX, previously known as ArteX, a trailblazer in the digital art industry, has recently rebranded and unveiled a groundbreaking web3 marketplace and community that empowers artists, collectors, art consultants and art lovers to redefine the value of digital art. The HeartX platform provides a secure, immersive, and transparent space for creating, sharing, and trading digital artworks, catering to artists, collectors, and the web 3 community alike. The sleek and user-friendly interface allows artists to upload and list their NFT-based digital art for a global audience to explore and purchase. HeartX’s unique art evaluation system engages all users by enabling them to rate by voting on digital art pieces, earning tokens as a reward, and creating an interactive and dynamic online art community. This feature fosters closer ties between creators, collectors, and art lovers and creates an interactive and dynamic online art community. HeartX’s Vote-to-Earn system allows people to show their taste and support, making it easier to join the web3 community. The team announces the launch of HeartX’s first season, which introduces a unique set of features designed to enhance user engagement and incentivize participation. The “vote-to-earn” model allows users to earn tokens by voting for art pieces, with both the most and least favored pieces resulting in token earning. With the tokenomics model, there are two types of tokens for the platform- the governance token $HTX and the utility token $HNX that encourage users to unlock new opportunities for growth and profitability. Additionally, multiple dimension ranking systems reward users, creators, and collectors, creating a positive feedback loop that encourages ongoing participation within the ecosystem. HeartX is excited to announce their team and partnerships as they prepare for launch in the rapidly growing web3 space. The team is composed of seasoned professionals with a diverse range of experiences and backgrounds, united by a strong passion for creating a seamless, secure, and user-friendly platform and ecosystem for users worldwide. HeartX has formed partnerships with some of the most innovative teams in the web3 space, with more to be announced. “We believe that the value of arts can be redefined by community consensus,” said HeartX founder Anson. “We also believe that ‘art’ shouldn’t be that out of reach, which is why we are bringing people the HeartX platform.” HeartX’s vision for the future of digital art goes beyond being an online marketplace. It is a vibrant community of art lovers passionate about exploring and collecting digital artwork. The platform connects creators and collectors, offering artists a unique opportunity to showcase their digital artwork to a global audience and collectors a chance to build a reputation and find unique, innovative pieces. The HeartX team has just released the HeartX whitepaper, outlining its vision for a decentralized future and highlighting the key features and benefits of the HeartX platform. The HeartX team invites everyone to read the whitepaper to learn more about its ambitious goals and innovative solutions. Learn more about HeartX’s whitepaper here. The team is continuing to develop the HeartX project and looks forward to sharing updates with the community as they progress toward launch. The HeartX marketplace will be launched in both app and web version in mid-April. Join HeartX today and experience the future of digital art. About DECENT ARTS Decent Arts Singapore Pte. Ltd. is a Web3 professional team dedicated to art. Decent Arts aims to connect the offline and online art worlds to broaden the boundaries of traditional art and establish a more inclusive, diverse and decentralized Web3 art ecology. Decent Arts focuses on the physical and digital art market and has created an online art community for trading and communication. It has launched digital art collections, and incubates a richer metaverse and Web3 products to allow more people to connect, understand, and finally fall in love with art. The team currently has 30 members who are responsible for product planning, artist cooperation, technology development, platform operations, etc. Most of the members come from successful Internet companies in diverse fields including gaming, live broadcast, social networking, e-commerce, art, blockchain, digital collections, and more. Contact The HeartX Teamheartxservice@gmail.com.....»»
Stormy Daniels is tweeting up a storm about Donald Trump ahead of a possible indictment in New York
"He probably watches my movies on repeat which may be why he has so many typos. (Slippery fingers from lube and KFC)," she said of Trump. Stormy Daniels, an adult films actress.Phillip Faraone/Getty Images Stormy Daniels posted snarky tweets about Donald Trump ahead of his possible indictment in New York. "Giving him a ride straight to jail. See how sweet I am?" the adult actress tweeted. Trump could be indicted in New York over hush money payments to Daniels. Stormy Daniels tweeted up a storm on Sunday night, slamming former President Donald Trump in a series of snarky tweets.Daniels, an adult films actress and self-described porn star, is at the center of a hush money payments investigation that may lead to a Trump indictment in New York in the coming days. She posted numerous tweets on Sunday about Trump, who she says she had an affair with in 2006."He probably watches my movies on repeat which may be why he has so many typos. (Slippery fingers from lube and KFC)," read one tweet from Daniels on Sunday.Daniels' tweet was in response to a tweet from one of her detractors, asking her why she was "so obsessed" with Trump."I only respond when he posts about me or talks about me on TV," she wrote.—Stormy Daniels (@StormyDaniels) March 19, 2023The reference to KFC was a nod to Trump's storied love for fast food. Right after his campaign pit stop in Iowa, where he dissed his former ally Florida Gov. Ron DeSantis, Trump dug into a hearty KFC meal on his plane.On Sunday, Daniels also replied to a Twitter account with the ID "America Floats," which posted an illustrated picture of Daniels and Trump with the words "Hi Ho Stormy!"The Twitter user tagged Daniels in the tweet and asked: "This you?"Daniels tweeted her reply: "It is! Giving him a ride straight to jail. See how sweet I am?"—Stormy Daniels (@StormyDaniels) March 19, 2023 In another thread, a Twitter user wrote: "Trump isn't getting arrested sweetly."Daniels hit back, writing: "So he lied? Again? Because that's what Tiny said on his own social media post."This was a reference to Trump's unsubstantiated claim on Truth Social that he will be arrested in New York on Tuesday. Meanwhile, "Tiny" appeared to be Daniels' new nickname for Trump, and a thinly veiled reference to his manhood. This follows her 2018 tell-all memoir, where she gave a graphic and salacious account of what Trump's private parts look like.Trump's statement about being arrested on Tuesday was not based on facts released by the Manhattan district attorney's office. The grand jury needs to hear another witness on Monday, and will not vote on whether to indict Trump until after the final witness wraps up their testimony.Manhattan District Attorney Alvin Bragg is currently investigating if Trump violated New York election and document laws by giving Daniels $130,000 in hush money payments to keep quiet about an affair.Trump has denied that he had an affair with Daniels. He has also denied paying her $130,000 to keep quiet about the relationship before the 2016 election; he maintains that the payments — funneled through his former fixer turned nemesis, Michael Cohen — were fees for Cohen's legal services.The former president could face up to four years in prison if convicted.Daniels' lawyer and a spokesperson for Trump did not immediately respond to Insider's requests for comment sent outside regular business hours.Read the original article on Business Insider.....»»
How credit-card points travel advisor build their businesses and give advice
Points and miles travel advisors offer consultations to teach clients about maximizing hotel points and airline miles earned for travel. Leigh Rowan is founder of Savanti TravelLeigh Rowan People seek expert help with points and miles because the amount of customer deals is daunting. Experts agreed that a passion for everything involving points and miles is key in the industry. It's key to be a people person and to build credibility as an expert. Max Do's career as a miles and points expert started as a hobby, stemming from a trip his now-wife took around the world."I saved up miles and points for two years and earned an epic three-week vacation — flying business class and staying at luxury hotels," said Do, a miles and points educator.After that trip, he was excited about what he had learned and created an Instagram account to share his knowledge. After gaining more than 430,000 followers across TikTok, Instagram, and YouTube during the pandemic, he quit his job to work full-time as a credit card miles and points expert.He made money from sponsored posts, credit card affiliate links, and offering consultations. What are credit card points travel awards?Travel advisors like Do offer consultations to teach clients about maximizing hotel points and airline miles earned for travel."The main draw is that you can earn points and miles using your everyday spend. You can buy groceries, pay for gas, utilities, and bills, all while earning points that can eventually lead to discounted travel or luxury experiences," said Do.Why hire a credit card points travel advisor?There's a demand for help with points and miles because the details can be vast and daunting for customers."There are tons of reward programs and quite a learning curve. By hiring an advisor, you can leverage an expert's knowledge, so you don't have to weed through all the blogs and podcasts," said Erik Paquet, director of marketing of AwardWallet.Erik Paquet is director of marketing of AwardWallet.Erik PaquetThe price for their services varies. For individual consultations, Dave Grossman, founder of MilesTalk, charges $175 for 45 minutes. "My consulting is meant to teach you to fish, not just give you a fish," he said. Grossman also creates consulting plans for CFOs of small businesses to maximize credit card points — this service can run into thousands of dollars.Dave Grossman is the founder of MilesTalk.Dave GrossmanDo charges $90 for 30-minute consultations and Award Wallet just launched Award Travel 1-On-1 at a rate of $100 for 30 minutes. Savanti Travel works with small to medium businesses on points and miles travel redemption strategies, and uses a subscription model on a minimum retainer of about $3,000 bucks a month. How to get started?Experts agreed that the key is a passion for everything involving points and miles, and a willingness to invest time learning the ins and outs of loyalty programs. "When I started in the early 2000s, I would read hundreds and hundreds of pages of FlyerTalk threads," said Grossman."I'm the type who likes to win games, and loyalty programs are similar; it feels like winning the lottery when you earn a difficult-to-book flight. The people that are really into miles and point love the challenge. I just went down the rabbit hole, and I never climbed out. It's an oddly fulfilling career."Much information is accessible for free online on blogs, podcasts, and social media, including Facebook groups like Award Travel 101®.After that, it's essential to bMax Do is a miles and points educator.Max Douild credibility. "Without having a blog, Instagram, or Tiktok, I don't think you could just hang out a shingle and announce that you do points consulting," said Grossman. "It's not a bad idea to work for a company like The Points Guy to gain experience. Also, freelance writing for major publications would give you that leg up to start."It's also essential to be a people person."It starts with the duty of care, really loving and being passionate about people and taking care of them and helping them achieve their dreams, visions, or goals," said Leigh Rowan, founder of Savanti Travel."Talented people are working in this industry, committed to helping people achieve wonderful trips and creating sound strategies to take care of clients," said Rowan. "It's not purely transactional; it's asking clients, 'how I can help you achieve your goals, ' and the bonus is to make money along the way."Read the original article on Business Insider.....»»
Romance scammers are bilking Americans out of $1.3 billion a year
Be careful who you trust online: more people are getting scammed out of thousands of dollars by people who claim to love them. Romance scams are booming and costing Americans billions, and they often start on Facebook or Instagram.iStock; Robyn Phelps/InsiderHow digital grifters are bilking the lonely out of $1.3 billion a yearKate Kleinert was home by herself one day in summer 2020 when she received a friend request from an attractive stranger on Facebook. He introduced himself as Tony, a Norwegian physician stationed in Iraq. Kate, who is 69, often received friend requests from single men. They usually fell in the same category: handsome, successful, and stationed in another country. "I never accepted those friend requests," she told me, "but there was something about this one. I don't know if it was the mood I was in that day, or what." She decided to accept Tony's friend request."I had been widowed at that point for 12 years and had never looked for another romance," she told me. "My heart was still married to my husband. I never went on dating sites. I never went out to clubs or bars looking for someone, but this man arrived in my living room."Over the next couple of months, Kate became swept up in what she thought was a whirlwind romance. Tony would message her daily, sending pictures of himself and sharing stories about his two children and his wife who he said died of leukemia. Before long, he was professing how much he loved Kate, asking her to look at houses for them to eventually move into together and check out schools for the children. "I really looked forward to someone saying to me, 'How was your day, honey?' I hadn't heard that in many years, so I'd forgotten how good it felt to have someone, anyone really, to talk to — but a man to talk to was especially nice," she told me. When Tony began to ask for money, it was initially for help with his daughter's expenses. Not having children of her own, Kate was thrilled at the chance to adopt a motherly role — and Tony assured her she would be paid back when they all were finally together at Christmas. Bypassing her initial doubts, she began sending money in the form of gift cards to help with various "emergencies," and by December 2020, she had sent $39,000. But the fairy-tale romance wouldn't last. A lover left in the lurch is a tale as old as time. But as the pandemic's isolation has sent more people online in search of companionship, the stakes have grown. According to the US Federal Trade Commission, the combination of pandemic isolation, online dating, and cryptocurrencies have spawned "a combustible combination for fraud." Americans lost $1.3 billion to romance scams last year — an 164% increase from 2019 — and $3.3 billion in total since the start of the pandemic. And according to the experts I talked to, the country's ongoing loneliness crisis has created the perfect opportunity for swindlers to strike. "They really invest in developing a relationship," Stacey Wood, a forensic neuropsychology expert, said about the scammers. "It may be six months before they ask for money. That's a commitment."A passionless crimeEver since the dawn of relationships, scammers have found ways to take advantage of people by spinning a convincing tale. But with the rise in online dating, these scams have proliferated, evolving into more sophisticated long cons to win the trust of victims. According to the FTC report, the most popular way scammers reached out to their victims last year was through Instagram (29%) and Facebook (28%).And as these schemes get more widespread and more complex, the number of people falling for romance scams keeps growing. Last year, 70,000 people reported they were a victim of a romance scam, with a median loss of $4,400. And that may just be the tip of the iceberg — the FTC notes that because the vast majority of scams aren't reported to the government, "these figures reflect just a small fraction of the public harm."One theory for the boom? The pandemic. Wood told me that while the COVID-19 lockdowns were not the sole factor for the increase, it certainly accelerated the problem. "Advances in technology, advances in crypto technology, having people isolated from third parties that might have been able to intervene, and less opportunity for affection all came together in a perfect storm," she said. People had a good excuse for not wanting to meet in person, and millions of people were more isolated than ever.The day Kate and Tony were finally due to meet, Kate got her hair and nails done and waited by the phone. Hours after Tony was supposed to land at the local airport, there was still no word. Eventually, she received a call from someone who claimed to be Tony's lawyer. Tony had run into legal trouble at the airport and needed bail money, the person said. After a flurry of calls over the next few days from both Tony and the lawyer trying to convince Kate to sell her car, cash in her life insurance policy, put another mortgage on her house, or ask a relative for money, Kate started to get suspicious. Tony was supposed to be in jail — how was he making this many phone calls? "I knew then, and it was like a bomb had gone off in my heart," she said. "This was not real."The nearly $40,000 that Kate had sent Tony had devoured her savings, her late husband's life insurance, her pension, and her income from Social Security. But more tragically, it left her heartbroken. "Losing the money — that was devastating. But losing that love and the thought of that family that we had? That's what crushed me," Kate said. An epidemic of lonelinessWhile the pandemic certainly added more fuel to the fire, America's long-simmering loneliness problem has facilitated financial scammers for years. Looking back to 2018, a study by the Kaiser Family Foundation found that one in five Americans said they always or often felt lonely or socially isolated, and among teenagers and young adults, reported loneliness nearly doubled in prevalence between 2012 and 2018.Wood told me that loneliness is a pretty consistent factor across different types of scams. "Psychological validation is a human need and these scammers do a lot of validation," she said. The scammers' tactics keep "people engaged and rewards behavior that is compliant with their requests and punishes behavior that's not. It's terrible but it's effective."Losing the money — that was devastating. But losing that love and the thought of that family that we had? That's what crushed me.And while the "loneliness epidemic" has been building for years, the pandemic turbocharged the problem. A recent Harvard survey of American adults found that 43% of young adults reported increases in loneliness since the outbreak of the COVID crisis. The survey also found that about half of lonely young adults reported that no one in the past few weeks had "taken more than just a few minutes" to ask how they are doing in a way that made them feel like the person "genuinely cared." Even now that the world has opened back up, virtual chats and video meetups have become an established part of dating culture, leaving the door open for swindlers.According to a survey conducted in 2022 by the UK financial company Nationwide Building Society, 82% of people had experienced bouts of loneliness or social isolation at some point, and 20% felt lonely on a daily basis. Among those who have felt lonely, 29% said they felt more vulnerable to a romance scam. And 17% of people who frequently felt lonely or socially isolated said they would keep talking to someone even if they were suspicious of their motives. "Anybody can be victimized," Wood said, but added that "psychological vulnerabilities, in particular depression and anxiety, can increase the risk for financial exploitation."The surge in loneliness is going to make these scams more likely, Wood said. "You can give practical advice, like make sure you meet someone in person before you give any money, etc., but I think there needs to be more structural interventions," she told me. "This is a growing problem that we need to actively change what we're doing to solve."Confluence of crypto and romanceIf loneliness was the reason "why" for the soaring number of romance scams, then crypto is the "how." Based on the reports filed with the FTC, the No. 1 payment method for romance scams last year was cryptocurrency. Crypto scams start in a similar way to other romance scams, but instead of asking for gift cards or wired money, the scammer convinces the victim to invest in cryptocurrency. In what's known as "pig butchering," the victim is tricked into investing ever-larger sums in fake currencies controlled by the scammer (the pig is fattened). Then the scammer cuts contact and absconds with the cash (the pig is butchered). Once someone falls for a scam, they are more likely to be preyed upon again."When I first saw Ren, he was very attractive, tall, fit, and really educated and successful," Sarrah Rose told Insider reporter Doree Lewak. She met him through a dating app, where he explained that one of his hobbies was trading cryptocurrency. He offered Sarrah advice on making trades with the crypto-trading app Coinbase. "He was having me move my money into an unregulated wallet that I wouldn't be able to get back," Rose said. "He tried to convince me that it was connected to Coinbase — considered a safe and established platform — so I would be fine. I didn't believe him."On day two, he sent her a screenshot of his crypto portfolio supposedly showing $5.5 million, with $150,000 in daily gains. Ren told Rose he was planning to make a trade and invited her to join him as a "way to get closer to one another.""You can try doing cryptocurrencies. That way, we might also have a common interest by doing something together," he wrote in a text seen by Insider. "It's a way for me to show my self-worth. If you trust me, I'll be happy," he added, while walking her through a transfer of funds to her Coinbase account. Because the crypto market was trending down, he said it was a "very good opportunity" to invest. "He refused to meet me in person but wanted to act like a boyfriend and expected me to trust him as a girlfriend would," Rose said. Though Rose was quickly wise to the scam, others haven't been as fortunate. In February, a woman from Tennessee shared that she had been scammed out of nearly $400,000 by a fraudster she met on the dating app Hinge. Nicole Hutchinson, a 24-year-old who, like Rose, had little knowledge of cryptocurrency, was contacted on Hinge with an investment opportunity. Unaware that the digital wallets she was instructed to transfer money to were controlled by her scammer, she ultimately lost both her own and her father's life savings.CipherBlade, a cryptocurrency investigative-analysis firm, estimates that worldwide losses from pig-butchering scams were in the "tens of billions" of dollars in 2021 alone, adding that the presumed losses are "incredibly high." Both crypto and non-crypto romance scams can be devastating to victims, but to make matters worse, once someone falls for a scam, they are more likely to be preyed upon again. After contacting AARP for help with her case, Kate was warned to be vigilant. She was told she was now on a green list that had been sold around the world with scammers spotlighting her as an easy target. No easy solutionsWhile the FBI website offers advice like "be careful what you post and make public online" and "research the person's photo and profile using online searches" to avoid scams, Wood would like to see more social-media platforms step in. She said that platforms could flag suspicious transactions and allow social workers or behavioral-health experts to intervene and hopefully limit the financial and emotional damage. Kate also said that educational commercials targeted at seniors would help expose people to these kinds of scams. "If we could see more about scams and how they're run, people would accept the fact that this is a danger and we need to do more against it," she said. A year after losing all her money to Tony's scam, Kate's house caught fire, destroying all her possessions, killing her dogs, and nearly taking her life. When a GoFundMe page was set up by a friend to help, Tony got back in contact. "It scared me because I knew he was watching me," she told me. "He's waiting for another opportunity. But I think I've learned a lot since then. I'm not nearly as vulnerable."Eve Upton-Clark is a features writer covering culture and society.Read the original article on Business Insider.....»»
The stock market is going to be trading flat as long as risk-free assets offer much more yield
The stock market doesn't have a lot going for it at the moment. Risk-free yields of around 5% aren't helping. Good morning. I'm senior editor, Max Adams, standing in for Phil Rosen. It's official: UBS will take over Credit Suisse in a historic deal. The Swiss National Bank made the announcement Sunday, saying that with the takeover, "a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation."In an hour-long call held late on Sunday evening, top UBS executives defended their decision — and analysts began breaking down what comes next.Meanwhile, markets are still reeling from the SVB fiasco, but there's a simpler reason why the stock market is going to be trading flat for the foreseeable future. If this was forwarded to you, sign up here. Download Insider's app here.Spencer Platt/Getty1. Banking turmoil aside, the stock market doesn't have much momentum as long as investors are getting much higher yields on risk-free assets. That's according to Goldman Sachs analysts, who wrote at the end of last week that investors are still adjusting to high valuations, and that equities should remain flat for a while as juicier yields are offered on much less risky investments. "We see two potential problems," the analysts said. "The first is that the US equity market, long a significant outperformer, remains expensive relative to history and relative to real rates."The second issue, they said, is that cash-equivalents like short term Treasury bonds are offering much higher returns for much less risk. Even falling from recent highs, the 2-year Treasury bond was yielding 3.87% on Friday afternoon, compared to a dividend yield of about 1.6% for the S&P 500. The banking crisis doesn't help matters for stocks. Even before Silicon Valley Bank crashed, investors were feeling the pain of a volatile stock market. Now, the trend towards less risky assets has been accelerated further. Since SVB fell, people have been pouring into money market funds at the highest rate since COVID began, with depositors fleeing the banking chaos and investors looking for somewhere stable to hide out until the storm passes. Things aren't set to improve much either. Goldman Sachs expects earnings growth to be basically flat this year, and just 5% in 2024. So despite the recent slump in stocks, that means valuations will likely remain relatively high in the absence of a steep sell-off at some point this year. "If, as we expect, global economies avoid recessions this year and inflation continues to moderate, the fundamental backdrop for equities would look more attractive for longer term investors," the Goldman analysts write. But until then, stocks are still too expensive and the risk-reward proposition doesn't look great for investors. What's your prediction for the stock market through the first half of this year? email me (madams@insider.com) to let me know. In other news:Fed Chairman Jerome Powell.OLIVIER DOULIERY/AFP via Getty Images2. Bitcoin, which is largely seen as a hedge against the banking system, hit a nine-month high of more than $28,000 late Sunday. Meanwhile, US stock futures are sharply down early Monday as investors remain on edge following the take over of Credit Suisse. Here are the latest market moves.3. Earnings on deck: Foot Locker, Pantheon Resources, and more, all reporting.4. Bank of America has a list of small cap stocks it recommends to prep for a recession. BofA's US Regime Indicator tells us we've entered the downturn phase. Here are 30 stocks the bank says are poised to outperform in this period.5. Executives at SVB and First Republic Bank sold millions in stock right before the chaos struck. First Republic's chief risk officer sold shares just two days before the SVB collapse. President Biden has called on Congress to authorize regulators to claw back executives' compensation.6. Tech stocks surged last week as broader markets flailed amid the banking turmoil. Mega-cap tech didn't just brush off the crisis, the sector vastly outperformed. A slew of factors including a possible TikTok ban, insulation from the banking woes, and expectations for lower rates made tech an unusual safe haven last week. Here's everything you need to know.7. The SVB calamity has made a recession more likely in 2023. Wall Street is worried that the episode will distract the Fed from its inflation fight. Whether the central bank keeps hiking rates, pauses, or cuts, there's downside in almost every scenario. "I don't really see a pass through the next 12 months without getting a recession," one source said. 8. There are clear steps the Fed can take to calm markets after SVB. JPMorgan Asset Management chief strategist David Kelly said one thing to do is stop raising interest rates now. Investors are scared and the central bank should keep the focus on the long term. Here are four things he thinks Powell and the Fed should do to soothe markets. 9. Two real-estate investors who profited $1.2 million in 2022 share some advice. Aria Khosravi and Alan Blue have flipped 91 houses, and that's helped them get to know the process inside and out. These are the four biggest tips they have to pull off a successful flip. Markets Insider10. Zurich-listed shares of Credit Suisse are down more than 58% early Monday. UBS chairman Colm Kelleher said in a statement that the acquisition of Credit Suisse is attractive for UBS shareholders "but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue." Read more.Curated by Max Adams in New York. Feedback or tips? Email madams@insider.com.Edited by Jason Ma in Los Angeles and Hallam Bullock (@hallam_bullock) in London.Read the original article on Business Insider.....»»
The inside story of hot startup Deel"s grow-at-all-costs culture
In today's edition: Flipping a crumbling Victorian townhouse into a dream house, all the countries that have banned TikTok, and more headlines. $100K apparently isn't that much, pals. I'm Diamond Naga Siu, and I'm definitely feeling a financial strain in San Diego.A new study found that if you make $100,000 in NYC, it only "feels like" $36,000. Meanwhile, the same study found that San Diegans need to make even more than New Yorkers to live comfortably. Imagine moving to New York to save some money. Wild.But you could also move to cities like Houston or St. Louis, where the increase in purchasing power would actually be significant. My colleague Aidan Pollard highlights the top 10 cities where your money goes the furthest.Before I go cry over my bank account, let's dive into today's tech.P.S. Check out Insider's event on how women leaders are transforming the tech industry. It's a perfect way to celebrate National Women's History Month.If this was forwarded to you, sign up here. Download Insider's app here.Robyn Phelps/ Insider1. Deel employees told Insider how the startup exploded. In just three years, the HR services startup grew from under 30 employees to over 2,000. An Insider investigation dives into the unconventional methods Deel used as it grew at such a rapid pace."Deel Speed" was the internal term for breakneck growth and constant action. And to some workers, an all-encompassing work ethic was exhilarating. But it's also the company's Achilles Heel, per a former worker.The company brought on employees across the world by the hundreds. Yet Deel often didn't have the required entities to hire local employees, insiders say. So they were hired as contractors instead.My colleague Rob Price talked with more than 30 current/former Deel employees about its astronomical rise. They shared the unconventional practices that they say helped fuel its ascent.Get a front row seat to Deel's grow-at-all-costs approach — intense, even for Silicon Valley.In other news:A view of Africa taken by Apollo 11 astronauts on July 20, 1969.NASA/Flickr2. How the vernal/spring equinox works. It means the Earth's tilted axis forms an L-shape with the sun's rays. The astronomical event is set to happen today, March 20. Here's the science behind it (as well as the equinox egg balancing trick).3. Higher fees are squeezing sellers for Amazon, Ebay, and other companies. Many of the major e-commerce platforms recently raised fees for sellers. Besides also raising prices, sellers are getting creative to make up for the lost money. Check out their strategies here.4. How much an influencer charges for brand deals. Paulina Perez has 6,900 followers on Instagram. She charges $350 for a post and $700 for a three-picture slideshow. Perez even offers a discount if you also bundle it with a TikTok post. Check out all her rates here.5. Grocery chain uses eye scanners and voice prints to identify shoplifters. This is becoming a common anti-theft method for stores. But shoppers are a little creeped out. More on the overly personal grocery run here.6. Every country that partially or completely banned TikTok. New Zealand most recently issued a partial ban, joining Taiwan, the UK, and others. Get the full list here. Bonus: Buying TikTok will be very tough — even for Big Tech. These are the most likely buyers.7. Loyalty, loyalty, loyalty: Why people are sticking with Silicon Valley Bank. Entrepreneurs revealed to Insider why they'll continue banking with the recently imploded institution. One said, "We owe them to keep them healthy." Check out their reasoning here.8. Volkswagen just beat Tesla at the affordable EV race. A $25,000 EV has long been discussed (especially by Elon Musk). VW just got closer to making it a reality with the ID.2all release, which it plans to sell for 25,000 euros ($26,600). The sleek, minimalist vehicle has a 280-mile range. Get a full look at the affordable ride here.Odds and ends:Sweeny took out an extra $35,000 loan to create her dream kitchen at McClain House.Betsy Sweeny9. Flipping an $18,000 Victorian townhouse into a dream home. This 3,025-square foot home was crumbling when Betsy Sweeny bought it. Check out more before and after photos (like the one above) here, plus how she financed it.10. Fitbit took a step back with the Versa 4. This midrange smartwatch fails to live up to expectations, Mattie Schuler writes for Insider. It doesn't store or play music and even has activity tracking issues. More on the underwhelming wearable here.What we're watching today:It's the United Nations' International Day of Happiness.Financial Times' annual Commodities Global Summit starts today in Lausanne, Switzerland.Legalweek is hosting its annual Leaders in Tech Law Awards in New York City.The Game Developers Conference starts today in San Francisco. Leaders from Google, Microsoft, and other major companies will speak at the event.The Economist's events group kicks off its third-annual Technology for Change Asia in Singapore. Nvidia's developer conference starts online today. It'll focus on AI and the metaverse.Cloudfest begins today in Europa-Park. The entire amusement park is closed just for the internet infrastructure conference attendees.Curated by Diamond Naga Siu in San Diego. (Feedback or tips? Email dsiu@insider.com or tweet @diamondnagasiu) Edited by Matt Weinberger (tweet @gamoid) in San Francisco and Hallam Bullock (tweet @hallam_bullock) in London.Read the original article on Business Insider.....»»
Picking up the pieces in the wake of SVB"s collapse
We're more than a week removed from the fall of Silicon Valley Bank. Here's where things stand for Wall Street and tech. Welcome back! Dan DeFrancesco in NYC, and I feel like my entire life has been a lie after learning the truth about "sizzling" fajitas at restaurants.Today, we've got stories on a fintech that's set up shop in the south of France, the potential downfall of a small, Christian college with Wall Street ties you've probably never heard of, and why you're doing intermittent fasting all wrong. But first, now what?If this was forwarded to you, sign up here. Download Insider's app here.Tyler Le, Rebecca Zisser/Insider1. Picking up the pieces from SVB.Where do we go from here?It's just over a week from Federal regulators announcing they would be bailing out depositors of Silicon Valley Bank and Signature Bank. Now, the FDIC said Sunday that New York Community Bancorp's Flagstar Bank will take on nearly all of Signature Bridge Bank's deposits.The initial bail out was meant to stop panic among the general public and limit contagion.About that...The past week has not been kind to the banking industry. SVB Financial, the parent company, has filed for bankruptcy as it still awaits a potential buyer. Meanwhile, the biggest US banks stepped in to deposit $30 billion into First Republic.Still, that might still not be enough to save the beleaguered bank. It's gotten so bad that famed investor and noted Midwesterner Warren Buffett is talking to the Biden administration about how to save regional banks. The bad banking vibes have even spread across the pond. Credit Suisse, whose problems long preceded SVB's downfall, to be fair, is getting acquired by Swiss rival UBS. The deal is worth $2 billion, a considerable amount less than what the bank's market cap was on Friday. Here's a statement from the Swiss National Bank on the news.In an hour-long call held late on Sunday evening, top UBS executives defended their decision — and analysts began breaking down what comes next.But, as we look at what the future holds for the world of finance, it's worth remembering how we got here. Insider has you covered with three features looking at the play-by-play perspective on how SVB fell apart, why big banks came out on top, and how the knock-on effects will be felt for years to come across industries.Panic and recrimination: Inside Silicon Valley's first real financial crisis.Wall Street keeps winning even in a banking crisis.Silicon Valley Bank was the bank for tech. Its collapse is everyone's problem.Top UBS executives defend their "emergency rescue" of Credit Suisse. Here's what comes next.In other news:Armando Oliveira/Getty Images2. Fintech in the south of France. Messaging and workflow startup Symphony opened an engineering hub just outside Nice where employees can split their time between the Alps and the French Riviera. (Must be Nice!) Check out photos from an office location we are all jealous of.3. VC's LPs weigh in. The people backing venture capitalists, known as limited partners, share their thoughts on how VCs handled the crisis at Silicon Valley Bank. Read more here.4. My college might soon no longer exist. Insider's Paige Hagy has a fascinating first-person look at her experience attending The King's College. The small, Christian school in New York City's financial district is on the brink of going under. You're gonna want to read this one.5. Invest in single-family rentals, they said. It'll be easy, they said. From iguanas squatting in the attic to dozens of snakes living in the walls, Wall Street is getting a crash course on being a landlord at scale. More wild examples of the challenges of property management. 6. PE and porn. The parent company of Pornhub (a website I am sure none of you are familiar with) was acquired by a new private-equity firm named, wait for it, Ethical Capital, The Financial Times reports. More on the deal here. 7. Forget Deadheads and Parrotheads, the Swifties are on tour. Taylor Swift's "Eras Tour" kicked off this weekend in Arizona. We broke down what goes into preparing a city for the arrival of the superstar's rabid fans. From new bars to thousands of cookies, here's how to build out "Swift City."8. So you want to get into the fast-food business? Fast food could mean fast money, but it won't necessarily come cheap. We've got the rundown on how much it costs to open 12 of the biggest fast-food chains in the US.9. How to ride the rails in style. Insider's Joey Hadden has ridden nearly 1,000 miles across multiple countries on business-class trains. Here's where she ranks them all. 10. If you're trying intermittent fasting, don't do this. It's a popular diet, but you need to do it right! These are five common mistakes to avoid, according to a researcher. Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. Read the original article on Business Insider.....»»
Charlotte transit plan still stuck in neutral with Republican lawmakers in Raleigh
The proposed transit expansion plan lacks both support and an identity — and the perception is one of inflexibility despite statements to the contrary......»»
Greensboro named one of country"s top 40 sports business markets by SBJ
Greensboro ranked higher than any other city without a pro franchise in either the NFL, NBA, NHL, MLB or MLS......»»
Chatham land by VinFast site hits the market with huge price – $50M
A piece of land in Chatham County could fetch a huge price tag......»»
Big Joe Forklifts" first autonomous pallet mover powered by tech from Pittsburgh-based Thoro.ai
A new autonomous mobile robot from a prominent warehousing logistics operator is being released due to a partnership with and tech made by a budding Pittsburgh robotics company. On Monday, Lombard, Illinois-based Big Joe Forklifts formally unveiled its new autonomous Pallet Mover at ProMat 2023 in Chicago, the company's first commercial autonomous offering that's being made possible as a result of collaboration with Lawrenceville-based robotics firm Thoro.ai. With Lidar and other sensors, the self-driving….....»»
JPMorgan Chase launches mortgage incentives amid national lending slump
Chase is launching an "advice pilot" starting with Arizona in mid-April, encouraging Chase customers to give Chase a second look on a mortgage loan......»»
"Unique vision": $7 billion Rowen project points to Gwinnett"s future economy
Companies in microelectronics, life sciences and pharmaceutical industries have spoken to economic development officials about Gwinnett County's planned $7 billion Rowen project......»»
Eagle Street Grille near Xcel Energy Center in St. Paul is closing
Eagle Street Grille, a St. Paul restaurant whose location near Xcel Energy Center has made it a popular food and drink spot for sports fans for two decades, will close its doors in April......»»
Public paychecks: The 25 highest-paid city of Burlington employees in 2022
Three Burlington employees made more than $150,000 in 2022......»»
Osceola-based Envirotech reaches agreement to sell electric vehicles across Southwest, Southeast
Electric vehicle manufacturer Envirotech, which plans to hire 800 people in Osceola, Arkansas, has signed a deal to sell its vans and trucks across the Southwest and Southeast......»»
: Ferguson started at overweight with $150 stock price target at J.P. Morgan
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: Portillo’s upgraded to buy from hold at Stifel Nicolaus
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: GrowGeneration stock price target cut to $4.30 from $5.25 at Stifel Nicolaus
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: New York Community Bancorp upgraded to outperform from neutral at Wedbush
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: Cresco Labs stock price target cut to $2.00 from $4.50 at Wedbush
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: RumblON stock price target cut to $9 from $13 at Wedbush
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: Roper Technologies started at buy with $510 stock price target at Truist
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: 9 Meters downgraded to hold from buy at Truist
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: Hookipa Pharma stock price target cut to $4 from $11 at Truist
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: Seagen stock price target raised to $229 from $152 at Truist
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UBS To Buy CS For $3 Billion As AT1 Bonds Get Wiped Out In Record Bail-In; Swiss Govt Grants CHF9BN Guarantee; SNB Offers $100 Billion Liquidity Backstop
UBS To Buy CS For $3 Billion As AT1 Bonds Get Wiped Out In Record Bail-In; Swiss Govt Grants CHF9BN Guarantee; SNB Offers $100 Billion Liquidity Backstop Update (1500ET): We finally have a deal, and what was at first a CHF1 BN acquisition priceof Credit Suisse by UBS, which then rose to CHF 2 BN, has now cranked up one final time to CHF 3BN (US$3.25 billion), or 0.76 per share, specifically shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse. As part of the deal, the Swiss National Bank is offering a 100 billion-franc liquidity assistance to UBS while the government is granting a 9 billion-franc guarantee for potential losses from assets UBS is taking over, i.e., this is a taxpayer-backed bailout. More importantly, however, the bank's entire AT1 tranche - some CHF16BN of Additioanal Tier 1 (AT1) bonds, a $275BN market - will be bailed in and written down to zero, to wit: "FINMA has determined that Credit Suisse’s Additional Tier 1 Capital (deriving from the issuance of Tier 1 Capital Notes) in the aggregate nominal amount of approximately CHF 16 billion will be written off to zero." This wipe out, pardon, bail-in is the biggest loss yet for Europe’s $275 billion AT1 market, far eclipsing the approximately €1.35 billion loss suffered by junior bondholders of Spanish lender Banco Popular SA back in 2017, when it was absorbed by Banco Santander SA to avoid a collapse. AT1 bonds were introduced in Europe after the global financial crisis to serve as shock absorbers when banks start to fail. They are designed to impose permanent losses on bondholders or be converted into equity if a bank’s capital ratios fall below a predetermined level, effectively propping up its balance sheet and allowing it to stay in business. As Bloomberg notes, investors had been concerned that a so-called bail-in would result in the AT1s being written down, while senior debt issued by the holding company, Credit Suisse would be converted into equity for the bank. In retrospect, they were right to be worried... meanwhile equityholders get CHF3 billion; we are confident Swiss pensions will be delighted they are getting a doughnut while the Saudis get a not immaterial recovery. PIMCO, Invesco and BlueBay Funds Management SA were among the many asset managers holding Credit Suisse AT1 notes. Pimco and BlueBay declined to comment when contacted by Bloomberg News on Friday, before the deal was announced. A spokeswoman for Invesco said that “due to portfolio disclosure policies, we wouldn’t disclose any current movements in portfolios but our investment teams are continuing to monitor developments and prudently managing our clients’ assets in light of current market conditions.” The bonds were by Friday already trading at levels usually reserved for companies about to go bust. A slice of the bank’s $1.65 billion note, issued less than a year ago, changed hands at about 35 cents on the dollar, according to trade reporting system Trace. And while it may be counterintuitive, according to the Swiss bail-in regime, AT1 debt is above equity in the loss absorption waterfall. Source: Credit Suisse According to Bloomberg, pricing fluctuated on Sunday as traders weighed two contrasting scenarios: either the regulator would nationalize part or the whole bank, possibly writing off Credit Suisse’s AT1 bonds entirely, or a UBS buyout with potentially no losses for bondholders. Well, as of this moment, those bonds have been Lehmaned, or rather Lehmanned in honor of the CS Chairman. Here is the full press release from Credit Suisse with final terms of the deal: Credit Suisse and UBS have entered into a merger agreement on Sunday following the intervention of the Swiss Federal Department of Finance, the Swiss National Bank and the Swiss Financial Market Supervisory Authority FINMA (FINMA). UBS will be the surviving entity upon closing of the merger transaction. Under the terms of the merger agreement all shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse. Until consummation of the merger, Credit Suisse will continue to conduct its business in the ordinary course and implement its restructuring measures in collaboration with UBS. The Swiss National Bank will grant Credit Suisse access to facilities that provide substantial additional liquidity. On March 19, 2023, Swiss Federal Department of Finance, the Swiss National Bank and FINMA have asked Credit Suisse and UBS to enter into the merger agreement. Pursuant to the emergency ordinance which is being issued by the Swiss Federal Council, the merger can be implemented without approval of the shareholders. The consummation of the merger remains subject to customary closing conditions. Credit Suisse and UBS have entered into a merger agreement on Sunday with UBS being the surviving entity. After negotiations that took place during the weekend leading up to the signing of the merger agreement, UBS and Credit Suisse concluded that it would be in the best interest of their shareholders and their stakeholders to enter into the merger. This move comes after the Swiss Federal Department of Finance, the Swiss National Bank and FINMA asked both companies to conclude the transaction to restore necessary confidence in the stability of the Swiss economy and banking system. The merger transaction provides for the following key terms: All shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse as merger consideration. This exchange ratio reflects a merger consideration of CHF 3 billion for all shares in Credit Suisse. The merger transaction remains subject to customary closing conditions. Both parties are confident that all conditions can be met. The merger is expected to be consummated by end of 2023 if possible. The Swiss National Bank will grant Credit Suisse access to facilities that provide substantial additional liquidity. For the purpose of a seamless integration of Credit Suisse into UBS, UBS is expected to appoint key personnel to Credit Suisse as soon as legally possible. Credit Suisse continues to operate in the ordinary course of business and implement its restructuring measures in collaboration with UBS. UBS has expressed its confidence that the employment of the staff of Credit Suisse will be continued. On Sunday, Credit Suisse has been informed by FINMA that FINMA has determined that Credit Suisse’s Additional Tier 1 Capital (deriving from the issuance of Tier 1 Capital Notes) in the aggregate nominal amount of approximately CHF 16 billion will be written off to zero. In consideration of the unique circumstances affecting the Swiss economy as a whole, the Swiss Federal Council is issuing an emergency ordinance (Notverordnung) tailored to this particular transaction. Most importantly, the merger will be implemented without the otherwise necessary approval of the shareholders of UBS and Credit Suisse to enhance deal certainty. Axel P. Lehmann, Chairman of the Board of Directors of Credit Suisse said: “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome. This has been an extremely challenging time for Credit Suisse and while the team has worked tirelessly to address many significant legacy issues and execute on its new strategy, we are forced to reach a solution today that provides a durable outcome.” And here is the press release from UBS's side, which repeat all of the above and informs us that "the combination of the two businesses is expected to generate annual run-rate of cost reductions of more than USD 8 billion by 2027." Translation: virtually all CS workers will be laid off. UBS to Acquire Credit Suisse Creates leading global wealth manager with USD 5 trillion of invested assets across the Group Extends UBS lead in Swiss home market UBS strategy unchanged, including focus on growth in Americas and APAC Attractive financial terms which include downside protection Annual run-rate of cost reduction of more than USD 8 billion expected by 2027 UBS remains strongly capitalized well above our target of 13% and committed to progressive cash dividend policy A focused Investment Bank, remaining committed to UBS’s model; strategic Global Banking businesses to be retained, majority of Credit Suisse markets positions moved to non-core UBS plans to acquire Credit Suisse. The combination is expected to create a business with more than USD 5 trillion in total invested assets and sustainable value opportunities. It will further strengthen UBS’s position as the leading Swiss-based global wealth manager with more than USD 3.4 trillion in invested assets on a combined basis, operating in the most attractive growth markets. The transaction reinforces UBS’s position as the leading universal bank in Switzerland. The combined businesses will be a leading asset manager in Europe, with invested assets of more than USD 1.5 trillion. UBS Chairman Colm Kelleher said: “This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure. Acquiring Credit Suisse’s capabilities in wealth, asset management and Swiss universal banking will augment UBS’s strategy of growing its capital-light businesses. The transaction will bring benefits to clients and create long-term sustainable value for our investors.” UBS Chief Executive Officer Ralph Hamers said: “Bringing UBS and Credit Suisse together will build on UBS’s strengths and further enhance our ability to serve our clients globally and deepen our best-in-class capabilities. The combination supports our growth ambitions in the Americas and Asia while adding scale to our business in Europe, and we look forward to welcoming our new clients and colleagues across the world in the coming weeks.” The discussions were initiated jointly by the Swiss Federal Department of Finance, FINMA and the Swiss National Bank and the acquisition has their full support. Under the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF 0.76/share for a total consideration of CHF 3 billion. UBS benefits from CHF 25 billion of downside protection from the transaction to support marks, purchase price adjustments and restructuring costs, and additional 50% downside protection on non-core assets. Both banks have unrestricted access to the Swiss National Bank existing facilities, through which they can obtain liquidity from the SNB in accordance with the guidelines on monetary policy instruments. The combination of the two businesses is expected to generate annual run-rate of cost reductions of more than USD 8 billion by 2027. UBS Investment Bank will reinforce its global competitive position with institutional, corporate and wealth management clients through the acceleration of strategic goals in Global Banking while managing down the rest of Credit Suisse’s Investment Bank. The combined investment banking businesses accounts for approximately 25% of Group risk weighted assets. UBS anticipates that the transaction is EPS accretive by 2027 and the bank remains capitalized well above its target of 13%. Colm Kelleher will be Chairman and Ralph Hamers will be Group CEO of the combined entity. The transaction is not subject to shareholder approval. UBS has obtained pre-agreement from FINMA, Swiss National Bank, Swiss Federal Department of Finance and other core regulators on the timely approval of the transaction. Finally, the clowns responsible for the global banking crisis have decided it's their turn to chime in. * * * Update (1430ET): The Swiss government, SNB and various regulators hold an ad hoc press conference on the Credit Suisse takeover by UBS. During the press conference, the Swiss president says the surge in deposit outflows on Friday showed that stabilization of Credit Suisse was necessary, i.e., the bank would have collapsed absent a takeover by a larger bank. And here are some more highlights from the presser: *KELLER-SUTTER: SOLUTION WILL STABILIZE CS, FINANCIAL MARKETS *KELLER-SUTTER: TOP PRIORITY WAS INTERESTS OF SWITZERLAND *KELLER-SUTTER: GUARANTEE ONLY KICKS IN ON CERTAIN THRESHOLD *CREDIT SUISSE TAKEOVER TO TRIGGER CHF16B WRITEDOWN ON AT1S *JORDAN: BANKRUPTCY OF CS WOULD HAVE HAD SEVERE CONSEQUENCES *JORDAN: CS BANKRUPTCY TO HAVE SEVERELY DAMAGED SWISS REPUTATION *JORDAN: US BANKING CRISIS AGGRAVATED CREDIT SUISSE CRISIS *JORDAN: SNB TO PROVIDE LIQUIDITY IF NEEDED Here is the full SNB statement: Swiss National Bank provides substantial liquidity assistance to support UBS takeover of Credit Suisse UBS today announced the takeover of Credit Suisse. This takeover was made possible with the support of the Swiss federal government, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank. With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation. Both banks have unrestricted access to the SNB’s existing facilities, through which they can obtain liquidity from the SNB in accordance with the ‘Guidelines on monetary policy instruments’. In addition, and based on the Federal Council’s Emergency Ordinance, Credit Suisse and UBS can obtain a liquidity assistance loan with privileged creditor status in bankruptcy for a total amount of up to CHF 100 billion. Furthermore, and based on the Federal Council’s Emergency Ordinance, the SNB can grant Credit Suisse a liquidity assistance loan of up to CHF 100 billion backed by a federal default guarantee. The structure of the loan is based on the Public Liquidity Backstop (PLB), the key parameters of which were already decided by the Federal Council in 2022. The substantial provision of liquidity will ensure that both banks have access to the necessary liquidity. By providing substantial liquidity assistance, the SNB is fulfilling its mandate to contribute to the stability of the financial system, and it continues to work closely with the federal government and FINMA to this end. * * * Update (1415ET): As attention turns to the bailoutee, it appears that the market is not convinced that not even the SNB's $100BN liquidity backstop will be sufficient as UBS Credit Default Swaps are starting to move in the wrong direction, and during Sunday's emergency trading session, BBG reports that UBS CDS have widened by at least 40bps (so far) to 215 bps for five-year contracts. Should this move accelerate, the deal MAC may still be triggered and the deal could fall apart. * * * Update (1300ET): The Financial Times reports that UBS has agreed to buy Credit Suisse after increasing its offer to more than $2bn, with Swiss authorities poised to change the country’s laws to bypass a shareholder vote on the transaction as they rush to finalize a deal before Monday. The purchase price is a fraction of the $8 billion market cap the company was valued at on Friday's close; it means that UBS will now pay slightly more than CHF0.50 a share in its own stock, up from a bid of SFr0.25 earlier today, but far below Credit Suisse’s closing price of CHF1.86 on Friday. We also learn that UBS agreed to a softening of a material adverse change clause that would void the deal if its credit default spreads jump; it wasn't immediately clear if that entire clause was scrapped or if the CDS trigger was merely pulled wider. UBS shareholders - who will not be consulted on the deal which will circumvent normal corporate governance rules by preventing a UBS shareholder vote - are angry. As FT notes, Vincent Kaufmann, chief executive of Ethos Foundation, which represents Swiss pension funds that own between 3% and 5% of Credit Suisse and UBS, told the Financial Times that the move to bypass a shareholder vote on the deal was poor corporate governance. “I can’t believe our members and UBS shareholders will be happy about this,” he said. “I have never seen such measures taken; it shows how bad the situation is.” As a reminder, here is a list of the 40 biggest investors. Finally, The Wall Street Journal reports that, in an effort to smooth the deal, the Swiss National Bank has offered UBS a whopping $100 billion in liquidity to help it take on Credit Suisse’s operations, In other words, the Swiss government has extended a liquidity line equal to ~$11.5MM on a per capita basis: said otherwise, every family of 4 is backstopping almost $50MM in UBS assets. Using UBS to save Credit Suisse marks a turnaround from nearly 15 years ago, when Switzerland bailed out UBS after it got stuck with billions of toxic assets in its U.S. business. Credit Suisse declined state aid at the time and emerged from the crisis in stronger shape. * * * Update (10:30am ET): So much for Credit Suisse thinking it has leverage by balking at the proposed CHF0.25 offer from UBS. Just hours after it was floated that UBS could buy Credit Suisse for $1BN, a proposal which the bank's shareholders balked at, Bloomberg reported that authorities are now considering a full or partial nationalization of Credit Suisse - an outcome which would wipe out the equity and bail-in bondholders - as the only other viable option outside a UBS Group AG takeover. And yes, 0.25 is still more than 0.0. According to BBG, "the country is considering either taking over the bank in full or holding a significant equity stake if a takeover by UBS Group AG falls apart because of the complexities in arranging the deal and the short time frame involved." Needless to say, the situation remains "very fluid" and is changing by the hour as authorities seek to finalize a solution for the bank by the time Asian markets open, which is late evening in Europe, the people said. * * * Earlier With just hours left until futures reopen for trading in what could be a very turbulent session, UBS has offered to buy Credit Suisse for up to $1BN the FT first reported, with Swiss authorities planning to change the country’s laws to bypass a shareholder vote on the transaction as they rush to finalize the deal engineered to restore trust in the banking system. Photo: Getty Images The take-under offer was communicated on Sunday morning with a price of CHF0.25 a share to be paid in UBS stock, far below Credit Suisse’s closing price of CHF1.86 on Friday. And while the current terms value Credit Suisse’s equity at a paltry $1BN, the figure does not reflect additional provisions of around $6 billion from the Swiss National Bank to ensure the deal is done. In other words, UBS gets an explicit $6BN central bank backstop (which would mean the central bank is in for a penny, in for a trillion), pays $1BN and gets a megabank whose Zurich headquarters alone is probably worth more. One can see why JPMorgan, pardon UBS would love the deal... and why Credit Suisse would be less than enthused. The all-share deal between the two biggest Swiss banks is set to be signed as soon as Sunday evening and will be priced at a fraction of Credit Suisse’s closing price on Friday, all but wiping out the target’s shareholders, FT sources said. They also noted that in an unexpected twist, there will be a very unique material adverse exit clause: if UBS credit default spreads jump by 100 basis points or more, the deal is off! In other words, if the market balks at the pro forma deal and believes more contagion is coming, UBS wants none of it, and the Swiss government and SNB can deal with the fallout. Needless to say, Credit Suisse shareholders - led by the Saudi National Commercial Bank, a full list of the top 40 is shown below - were less then enthused by the prospect of losing everything ... ... and Bloomberg notes that Credit Suisse is pushing back on the proposed deal with backing from its biggest shareholder: "Credit Suisse believes the offer is too low and would hurt shareholders and employees who have deferred stock." The FT echoes the skepticism, and says that the situation is fast-moving and there is no guarantee that terms will remain the same or that a deal will be reached: "Some of the people said that the current terms were unfair for Credit Suisse and its shareholders. Others criticised the plans to void normal corporate governance rules by preventing a UBS shareholder vote." The reason why in this late hours there seems to be little convergence toward a consensus is because there has been limited contact between the two banks and the terms have been heavily influenced by the Swiss National Bank and regulator Finma, the FT sources said. Meanwhile, the Federal Reserve has given its assent to the deal progressing. Both sides have been locked in discussions with regulators since Wednesday, when Credit Suisse asked the SNB to provide it with an emergency SFr50bn ($54bn) credit line. When this backstop failed to halt the collapse in depositor confidence and stock price - as we said it would - the central bank stepped in to force a merger after becoming concerned about the viability of the country’s second-largest lender. Yesterday, we learned that deposit outflows from Credit Suisse topped SFr10bn a day late last week, after a record bank run pulled CHF111BN from the group in the final three months of last year. According to the FT, on Saturday night, the Swiss cabinet assembled in the finance ministry in Bern for a series of presentations from government officials, the SNB, market regulator Finma, and representatives of the banking sector. UBS will dramatically shrink Credit Suisse’s investment bank, with Reuters reporting that some 10,000 workers will be let go, and the combined entity will make up no more than a third of the merged group, two of the people said. However, the current term sheet for the deal does not specify what will happen to Credit Suisse’s individual business divisions, and simply outlines a 100% takeover of the group. The government is preparing emergency measures to fast-track the takeover and plans to introduce legislation that will bypass the normal six-week consultation period required for UBS shareholders so the deal can be sealed immediately. The framework of the deal has been designed by Swiss regulators to provide maximum stability to the country’s banking system, people briefed about the matter said. However, if Credit Suisse balks at the takeunder - as it perhaps should and takes its chances in bankruptcy court where its equity may be valued higher than the paltry 0.25 - the Swiss National Bank, and all other central banks, will have no choice but to step with a shotgun bailout of the entire financial system for the second time in 15 years. Tyler Durden Mon, 03/20/2023 - 04:11.....»»
Hungarian PM Orbán: "Europe Suffers From War Psychosis"
Hungarian PM Orbán: "Europe Suffers From War Psychosis" Via Remix News, The main issue facing Europe today is war, which puts Hungary in a difficult situation, as the effects of war are severe and immediate, Hungarian Prime Minister Viktor Orbán said at a meeting of the Organization of Turkic States summit in Ankara. The prime minister stressed that, unfortunately, Europe was suffering from a “war psychosis,” with the continent drifting further into war day by day. Orbán thanked the leaders of the Turkish states for strengthening the voice of peace. Hungary — on account of its population’s Asian origins — is an honorary member of the Organization of Turkic States. Orbán thanked Turkish President Recep Tayyip Erdoğan, who, he said, had so far been able to mediate successfully between the warring parties, and called on him to continue his efforts in the future. “Only in this way can we have a chance for peace,” Orbán said. He also thanked the Turkish president for the fact that Hungary and Turkey could coordinate their work within NATO. Hungary’s geographical proximity to the war has placed the issue of pursuing peace at the top of the agenda for Hungary, according to Orbán. “Ukraine is a neighboring state, and the effects of the war are therefore severe and direct, with inflation skyrocketing and energy prices at an all-time high,” he said, adding that “many Hungarians have now died in the war because men from the Hungarian community in western Ukraine are also being conscripted into the army.” “For Hungary, the most important thing is to save human lives, and that is why we are advocating a ceasefire as soon as possible and peace negotiations.” At the same time, the prime minister expressed the view that what is happening in Europe is more than just war, because in fact, “the whole of Europe is being reshuffled in terms of power relations,” and this will also have repercussions for Turkey. He added that Hungary is also seeing another threat: “There are processes going on in the world economy that could lead to a new global balance.” He said that the segmentation of the world economy is against Hungary’s interests, and Hungary sees its future not in segmentation, but in acting in the collective interest and improving interconnectivity. “The Turk states can play a key role in this, because here we are European, Caucasian and Central Asian countries connected to each other on the basis of mutual respect, setting a good example for the whole world,” the prime minister said in his speech. Tyler Durden Mon, 03/20/2023 - 06:30.....»»
Less Than 20% Of American Students Choose STEM Degrees
Less Than 20% Of American Students Choose STEM Degrees Graduates in the fields of science, technology, engineering and mathematics - STEM for short - are sought after globally, but are often in short supply. Many countries have tried to bolster enrollment in STEM to aid important growth industries like medtech, digital services, mobility or computer sciences. However, countries have had varying success in the matter. As Statista's Katharina Buchholz reports, according to numbers collected by the UNESCO Institute for Statistics, tertiary students in Malaysia and Tunisia are among the most likely to graduate in a STEM field, with between 43.5 and almost 40 percent of students there receiving a respective degree, out of all countries where recent data was available. India, with a still high share of 34 percent of students picking STEM, is however producing the most graduates in total in the field due to its population of around 1.4 billion people - the largest in the world. You will find more infographics at Statista UNESCO did not publish data for China. In 2016, the World Economic Forum said that China actually produced 4.7 million STEM graduates a year, which would actually exceed India’s number. Yet, according to the National Science Foundation, China classifies engineering and science fields quite broadly, leading to a lack of comparability in the data. The U.S. government agency counted 1.6 million Chinese science and engineering graduates in 2014, which would be fewer than Indian graduates. Other countries with a strong showing of STEM graduates are the United Arab Emirates, Germany, Belarus and South Korea – all producing more than 30 percent STEM graduates. In general, countries that have managed to produce a higher share of STEM graduates than elsewhere are more likely to be found in the Arab world, in Eastern Europe and also in East Asia. After Tunisia, the share of STEM degree recipients is also upwards of 29% in Algeria, Mauretania and Morocco, all due to the prevalence of computer engineering in the region. The Arab Gulf - a place that has recently been pushing to innovate its economies - is producing an above-average number of STEM grads in some places, namely the UAE and Oman. With the exception of Germany, Western Europe is not a STEM hotbed, however. Only 26 percent of UK graduates come from STEM courses, as do 25 percent in France and 23 percent in Spain. Even fewer graduate in the Americas, with shares of 19.6 percent and 17.5 percent in the U.S. and Brazil, respectively. Tyler Durden Mon, 03/20/2023 - 06:55.....»»
Massive Layoffs On Deck At Credit Suisse, Which Tells Workers Bonuses Will Still Be Paid So Go To Work
Massive Layoffs On Deck At Credit Suisse, Which Tells Workers Bonuses Will Still Be Paid So Go To Work The forced bail-in sale of Credit Suisse to UBS will lead to a staggering number of job cuts in the next few weeks or months, as there are significant overlaps at both banks resulting from the merger. Before the merger, Credit Suisse was already undergoing a restructuring process, laying off upwards of 9,000 employees. Now job losses could accelerate at the troubled bank, according to Bloomberg, citing people familiar with the situation. The two banks have a considerable workforce with approximately 125,000 employees, 30% of whom are located in Switzerland. The merger creates a lot of overlaps in certain departments, and the people estimate significant job cuts are looming. UBS Chairman Colm Kelleher wouldn't share any details over the weekend about the job-cut number, but UBS published a statement Sunday about the need to reduce the bank's annual cost base by more than $8 billion by 2027. "Let me be very specific on this: UBS intends to downsize Credit Suisse's investment banking business and align it with our conservative risk culture," Kelleher said at Sunday's press conference. He warned about a bumpy road ahead. Bloomberg said Credit Suisse employees were emailed a memo about the impacted roles and "will aim to continue to provide severance in line with market practice." The memo stated that bonuses would remain unchanged and will be paid on Friday... which probably is when everyone quits right after the bonus wire transfer hits their bank account (which is neither at UBS nor Credit Suisse). There will be no changes to payroll arrangements and bonuses will still be paid on March 24, the Credit Suisse said in an internal memo to staff: BBG So everyone quits next Friday — zerohedge (@zerohedge) March 20, 2023 "We know that many of you will have been following the intense media coverage over the past 48 hours on the future of Credit Suisse and appreciate the enormous uncertainty and stress that this has caused," Credit Suisse Chairman Axel Lehmann and Chief Executive Officer Ulrich Koerner said in a separate memo. The path moving forward for both banks appears to include reducing expenses and headcount. UBS will become even more dominant in Switzerland. And the good news is the takeover reduces systemic concerns (for now). Tyler Durden Mon, 03/20/2023 - 07:14.....»»
"This Is It!" - Von Greyerz Warns "The Financial System Is Terminally Broken"
"This Is It!" - Von Greyerz Warns "The Financial System Is Terminally Broken" Authored by Egon von Greyerz via GoldSwitzerland.com, The financial system is terminally broken, toast, kaput! Anyone who doesn’t see what it happening will soon lose a major part of their assets either through bank failure, currency debasement or the collapse of all bubble assets like stocks, property and bonds by 75-100%. Many bonds will become worthless. Wealth preservation in physical gold is now absolutely critical. Obviously it must be stored outside a broken financial system. More later in this article. The solidity of the banking system is based on confidence. With the fractal banking system, highly leveraged banks only have a fraction of the money available if all depositors ask for their money back. So when confidence evaporates, so do the balance sheets of the banks and depositors realise that the whole system is just a black hole. And this is exactly what is about to happen. For anyone who believes that this is just a problem with a few smaller US banks and one big one (Credit Suisse), they must think again. RE CREDIT SUISSE SEE ‘STOP PRESS’ AT THE END OF THE ARTICLE. THE BANKS ARE FALLING LIKE DOMINOS, INCLUDING CREDIT SUISSE TONIGHT Yes, Silicon Valley Bank (16th biggest US bank) is gone after an idiotic and irresponsible policy to invest short term customer deposits in long term US Treasuries at the bottom of the interest rate cycle. Even worse, they then valued the bonds at maturity rather than market, to avoid taking a loss. Clearly a management that didn’t have a clue about risk. SVB’s demise is the second biggest failure of a US bank. Yes, Signature Bank (29th biggest) is gone due to a run on deposits. And yes, First Republic Bank had to be supported by US lenders and the Fed by a $30 billion loan due to a run on deposits. But this won’t stop the rot as depositors attack the next bank and the next one and the next one………. And yes, the Swiss second largest bank Credit Suisse (CS) is terminally ill after a number of poor investments over the years combined with poor management that has come and gone virtually every year.. I wrote an important article about the coming demise of CS 2 years ago here: “ARCHEGOS & CREDIT SUISSE – TIP OF THE ICEBERG.” The situation at CS is so dire that a solution needs to be found before Monday’s (March 20) opening. The bank cannot survive in its present form. [ZH: a 'solution' was found... for now] A failure for Credit Suisse would not just rock the Swiss financial system but have severe global repercussions. A merger with UBS is one solution. But UBS had to be bailed out in 2008 and doesn’t want to be weakened again by Credit Suisse without state guarantees and support from the Swiss National Bank (SNB). The SNB injected CHF50 billion into CS last week but the share price still went to a new low. No one should believe that a state subsidised takeover of Credit Suisse by UBS will solve the problem. No, it will just be rearranging the deck chairs on the titanic and making the problem bigger rather than smaller. So rather than a lifebuoy, UBS will have a massive lead weight to carry which will guarantee its demise as the banking system collapses. And the Swiss government will take on assets which will be unrealisable. Still, it is likely that by the end of the present weekend a deal will be announced with UBS being offered a deal they can’t refuse by taking over the good assets and the SNB/Government nurturing the bad assets of Credit Suisse in a rescue vehicle. The SNB is of course in a mess itself, having lost $143 billion in 2022. The SNB balance sheet is bigger than Swiss GDP and consists of currency speculation and US tech stocks. This central bank is the world’s biggest hedge fund and the least successful. Just to put a balanced view on Switzerland. It has the best political system in the world with direct democracy. It also has low Federal debt and normally no budget deficits. It is also the safest country in the world. SWISS BANKING SYSTEM TOO BIG TO SAVE But the Swiss banking system is very unsound, just like the rest of the world’s. A central bank which is bigger than the country’s GDP is extremely unsound. And a banking system which is 5x Swiss GDP makes it too big to save. Although the Fed and ECB are much smaller in relation to their countries’ GDP than the SNB, these two central banks will soon discover that their assets of around $8 trillion each are grossly overvalued. With a global banking system on the verge of a systemic failure, Central Bankers and bankers have been working around the clock this weekend to temporarily avoid the inevitable collapse of the bankrupt financial system. BIGGEST MONEY PRINTING IN HISTORY COMING As I pointed out above, the main Central Banks would also be bankrupt if they valued their assets honestly. But they have a wonderful source of money that they will tap to save the system. Yes, I am of course talking about money printing. We will in coming months and years see the most massive avalanche of money printing that has ever hit the world. For anyone who believes that we are just seeing another bank run that will quickly evaporate, they will need to take a shower in ice cold Alpine water. What we are witnessing is not just a temporary drama that will be sorted out by “the all powerful and resourceful” central banks. THE DEATH OF MONEY No, instead what we are seeing is the end phase of this financial era which started with the formation of the Fed in 1913 and in the next few years, or much sooner, will end with the death of money. But the Death of Money doesn’t just mean that the dollar (and most currencies) will make their final move to ZERO, having already declined 98% since 1971. Currency debasement is not the cause but the effect of the banking Cabal taking control of the money for their own benefit. As Mayer Amschel Rothschild said in the late 1700s: “Let me issue and control a nation’s money and I care not who makes the laws”. Sadly, as this Cassandra (me) has written about since the beginning of the century, the Death of Money is not just all currencies going to ZERO as they have throughout history. No, the Death of Money means a total and final collapse of this financial system. Cassandra was a priestess in Greek mythology who was given the gift of predicting major events accurately but also given the curse that no one would believe her predictions. No depositor must believe that the FDIC (Federal Deposit Insurance Corp) in the US or similar vehicles in other countries will save their deposits. All these organisations are massively undercapitalised and in the end it will be the governments in all countries which step in. We know of course, that the government has no money. They just print whatever they need. That leaves ordinary people taking the final burden of all this money printing. But ordinary people will have no money either. Yes a few rich people will be taxed heavily to cover bank deficits and losses. Still, that will be a drop in the ocean. Instead ordinary people will be impoverished with little income, no government handouts, no pension and money which is worthless. The above is sadly the cycle that all economic eras go through. The issue this time is that the problem is global and of a magnitude never seen before in history. Regrettably a rotten and bankrupt financial system needs to go through a cleansing period which the world will now experience. There cannot be sound growth and sound values until the current corrupt and debt infested system implodes. Only then can the world grow soundly again. The transition will sadly be dramatic with a lot of suffering for most people. But there is no other way. We won’t just see poverty, famine but also many human tragedies. The risk of social unrest or civil war is very high plus the risk of a global war. Central banks had of course hoped that their Digital Currencies (CBDC) would be ready to save them (but not the world) from the present debacle by totally controlling people’s spending. But in my view they will be to late. And since CBDCs are just another form of Fiat money, it would just exacerbate the problem with an even more severe outcome at the end. Still, it won’t prevent them from trying. MARKET VALUE OF US BANKING ASSETS $2 TRILLION LOWER THAN BOOK VALUE A paper issued by 4 US academics in finance, illustrates the $2 trillion black hole in the US banking system: “Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?” March 13, 2023 Erica Jiang, Gregor Matvos, Tomasz Piskorski, and Amit Seru CONCLUSION “We provide a simple analysis of U.S. banks’ asset exposure to a recent rise in the interest rates with implications for financial stability. The U.S. banking system’s market value of assets is $2 trillion lower than suggested by their book value of assets. We show that these losses, combined with a large share of uninsured deposits at some U.S. banks can impair their stability. Even if only half of uninsured depositors decide to withdraw, almost 190 banks are at a potential risk of impairment to even insured depositors, with potentially $300 billion of insured deposits at risk. If uninsured deposit withdrawals cause even small fire sales, substantially more banks are at risk. Overall, these calculations suggest that recent declines in bank asset values significantly increased the fragility of the US banking system to uninsured depositors runs.” What is crucial to understand is that the $2 trillion “loss” is only due to higher interest rates. When the US economy comes under pressure, the loan books of the banks will deteriorate dramatically and bad debts increase exponentially. With total assets of US commercial banks at $23 trillion, I would be surprised if 50% is repaid or recoverable in the coming crisis. The above risks are just for the US financial system. The global system will be no better with the EU under massive pressure partly due to US led sanctions of Russia. Virtually every major economy in the world is in a dire position. Lets just look at the debt pyramid which I have discussed in many articles LINK In 1971, when Nixon closed the gold window, global debt was $4 trillion. With gold backing no currency, this became a free for all to print unlimited amounts of money. And thus by 2000 debt had grown 25x to $100t. In 2006, when the Great Financial Crisis started, global debt was $120 trillion. By 2021 it had grown 75x from 1971 to $300 trillion. The red column shows global debt at $3 quadrillion sometime between 2025 and 2030. This assumes that the shadow banking system plus outstanding derivatives of currently probably around $2 quadrillion will need to be saved by central banks in a money printing bonanza. This will obviously lead to hyperinflation and thereafter to a depressionary implosion. I know this sounds sensational but still a very likely scenario at the end of the biggest credit bubble in history. GOLD – CRITICAL WEALTH PRESERVATION I have been standing on a soapbox for over 20 years, warning the world about the coming financial crisis and the importance of physical gold for wealth preservation purposes. In 2002 we invested important funds into physical gold with the purpose of holding it for the foreseeable future. Between 2002 and 2011 gold went from $300 to $1,900. Since then gold corrected and then went sideways as stocks and the asset markets surged backed by massive credit expansion. With gold currently around $1990, there is not much gain since 2011. Still since 2002 gold is up 7x. Due to the temporarily stronger dollar, gold’s gains measured in dollars are much smaller than in Euros, Pounds or Yen. But that will soon change. In the final section of the article “WILL NUCLEAR WAR, DEBT COLLAPSE OR ENERGY DEPLETION FINISH THE WORLD?”, I outlined the importance of owning physical gold to store it in a safe jurisdiction away from kleptocratic governments. “2023 is likely to be the year of gold. Both fundamentally and technically gold looks like it will make major up moves this year.” And at the end of this article, I explain the importance of how and where gold should be held:“PREPARE FOR 10 YEARS OF GLOBAL DESTRUCTION.” “So my own preference would be to own physical gold and silver that only I have direct control of and can withdraw or sell with very short notice. It is also important to deal with a company that can move your metals at very short notice if the security or geopolitical situation would necessitate it.” In February 2019 I wrote about what I called the Gold Maginot Line which had held for 6 years below $1,350. This is typical for gold. Having gone from $250 in 1999 to $1,900 in 2011, it then spent 8 years in a correction. At the time I forecast that the Maginot Line would soon break which it did and swiftly moved to $2,000 by August 2020. We have now had another period of consolidation since then and the next move above $2,000 and towards $3,000 is imminent. Just to remind ourselves what happens to your money and gold during a hyperinflationary period, here is a photo from China’s hyperinflation in 1949 as people try to get their 40 grammes (just over one ounce) that they were allocated by the government. At some point in the next few years, there will be a panic in the West to buy gold at any price. So as I have been urging investors for over 20 years, please get your gold NOW while it is still available. STOP PRESS Intense discussions are right now going on here in Switzerland between UBS, Credit Suisse, the regulator FINMA, the Swiss National Bank – SNB – and the Swiss Government. The Fed, the bank of England and the ECB are also involved. The latest rumour is that UBS will buy Credit Suisse for CHF900 million ($1 billion). The shares of CS closed at a market cap of CHF8 billion on Friday. The deal would clearly involve backing from the SNB and the Swiss government which would have to take on major liabilities. The December 2022 book value of CS was CHF42 billion, as with all banks massively overstated. The deal isn’t done at this point, 5.30pm Swiss time, but the whole banking world knows that without a deal, there will be global contagion starting tomorrow Monday the 20th. Even if a provisional deal will be done by Monday’s open, the financial system has now been permanently injured with an open wound which won’t heal. The problem will just move on to the next bank, and the next and the next…. Hold on to your seats but buy gold first. Tyler Durden Mon, 03/20/2023 - 07:20.....»»
Outside the Box: The end of the ‘everything bubble’ has finally hit the banking system. Credit Suisse and SVB might be just the first of many shocks.
The Fed and other central banks face a difficult choice: Keep rates high to control inflation or loosen monetary policy to stabilize financial markets......»»
Outside the Box: The Biden administration has the power to stop bank CEOs from creating the next SVB. They just need to use it.
A provision in the Dodd-Frank law could have held SVB CEO Gary Becker accountable — and maybe kept Silicon Valley Bank solvent......»»
: The $275 billion bank convertible bond market thrown into turmoil after Credit Suisse’s securities wiped out
Swiss regulator Finma's write down of 16 billion Swiss francs ($17.2 billion) of risky bonds in Credit Suisse caused the price of AT1 bonds across the market to fall on Monday and rang alarm bells for investors of risky bonds in other European banks......»»
Outside the Box: SVB collapsed suddenly not because of the internet and social media, but because that’s what always happens in a bank run
Technology doesn't drive the speed of a bank run. It's how quickly people panic......»»
Banking: First Republic set to open at an all-time low as U.S. banks get little or no lift from UBS-Credit Suisse tie-up
First Republic continues slide as U.S. banks fall. UBS and Credit Suisse weigh on banks after megadeal, while analyst ponders fate of bank deposits......»»
: First Republic stock sinks after credit rating slashed by another three notches at S&P
First Republic Bank's stock sank toward a record low Monday, after the bank's credit rating was slashed further into junk territory by S&P Global Ratings......»»
: Foot Locker stock reverses early losses as it unveils plan to expand sneaker line and relaunch core brand
Retailer's stronger-than-expected fourth quarter weighed against weaker-than-expected guidance for the current year......»»
Dollar Tree has stopped selling eggs, pointing to "very high" prices that persist, reports say
Dollar Tree has stopped selling eggs, the chain told multiple outlets this week. The company does not anticipate bringing eggs back until the fall. Dollar Tree has stopped selling eggs, the chain told multiple outlets this week. The company does not anticipate bringing eggs back until the fall. .....»»
First Mover Asia: Banking Instability Makes Bitcoin a Safe Bet
ALSO: Bitcoin’s surge over the past week reflects a "flight to quality," but liquidity remains an issue......»»
FTX’s Bahamas Arm a ‘Nullity’ That Should Be Stripped of Assets: Court Filings
The Caribbean arm is a mere shell to further Sam Bankman-Fried’s fraud, the company alleged......»»
Crypto Market Witnesses Odd Relationship Between Bitcoin, Ether Volatility Metrics
Bitcoin is in the spotlight as cracks emerge in the traditional banking system, one observer said, explaining the negative spread between ether and bitcoin implied volatility metrics......»»
Market Maker DWF Labs Invests $20M in DeFi Liquidity Protocol Synthetix
DWF Labs purchased $15 million worth of Synthetix's native token SNX on March 16 with a further purchase of $5 million to follow......»»
EU’s MiCA Crypto Law Debate Scheduled for April 18
A final vote on the bloc’s Markets in Crypto Assets Regulation, which brings in a new licensing regime, is due April 19......»»
Cryptocurrency Outlook Is Strengthened by U.S. Banking Turmoil: Coinbase
More people now appreciate the fundamental value proposition of having an alternative to the traditional financial system, the report said......»»
Crypto.com Gets Closer to an Operational License in Dubai
Singapore-based digital asset trading platform Crypto.com has received a preparatory license from Dubai's Virtual Digital Assets regulator......»»
"US Banking Will Be Forever Changed"
"US Banking Will Be Forever Changed" By Eric Peters, CIO of One River Asset Management “What is our total exposure?” I had asked our COO as the Silicon Valley Bank run was intensifying, two Thursdays ago. All our client money is held in our investment funds, and excess fund cash is in T-Bills for security, so I wasn’t asking about that. I was asking about cash that our firm had on deposit at a commercial bank. Like so many other small and medium sized businesses, that in aggregate make up the US economy, we turned to a local bank when we started the firm in Santa Barbara, California, 10 years ago this week. The next day (Fri morning) I faced an important decision. We had millions of dollars in cash on deposit at the bank. Two-thirds of it was scheduled to be swept out for payroll and other accounts payable on Monday. The remaining third was earmarked for payments a week later. If we immediately wired the money out of our bank, we would miss payroll and this would hurt our employees, at least some of whom would then miss their mortgage payments and other payables. But if we kept the money on deposit and the bank failed, it was a material problem. If our bank had been SVB, I would have wired it out immediately. But it was another regional name, and I figured that even if the government failed to agree on a weekend bailout, our bank would probably survive long enough on Monday for our payroll to go out. So, we sat tight with the payroll money and moved the remaining one-third into T-Bills. Our COO had already started the process of opening new accounts at a Tier-1 bank; one of the too-big-to-fail affairs that are now politely called SIBs (systemically important banks). Our bank’s stock price collapsed on Monday and will almost certainly not survive this bank run in its present form. But our payroll went out on time. Had it not, I would’ve lent money to our firm to pay our employees, and then waited an indeterminate period to get money back from the bank, less a haircut. We got paid absolutely nothing to take all these risks. In fact, by moving our money to a SIB and then sweeping excess cash into T-Bills, we will get paid a lot of money on our cash. Rarely in life do you get paid more to take less risk. You do now. Business owners take a lot of risk, endure sleepless nights. Our commercial banks are central to business. We want banks to operate flawlessly and be as boring as possible. But now our banks scare us. So, we will move to SIBs unless the government provides immediate blanket guarantees to all depositors. But even so, most of us will still now move, because we get paid nothing to stay. And US banking will be forever changed. Power will concentrate further into SIBs. Credit creation will suffer profoundly, and economic dynamism with it. Tyler Durden Mon, 03/20/2023 - 05:45.....»»
Market Snapshot: Stock futures slip, but off worst levels, as traders eye banking sector woes after Credit Suisse deal
Investors hoping UBS buying its beleaguered Swiss peer Credit Suisse would draw a line under banking sector angst will be disappointed as the new week begins......»»
Need to Know: Investors are misreading the SVB depositor rescue, and shouldn’t be buying stocks yet, warns Morgan Stanley’s Mike Wilson
Morgan Stanley's chief U.S. equity strategist warns investors are wrongly interpreting the U.S. rescue for bank depositors as a sort of quantitative easing......»»