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Economic Report: Mortgage rates take a breather as the sector cools

The 30-year fixed-rate mortgage averaged 5.7% for the week ending June 30, down 11 basis points from the prior week, according to Freddie Mac......»»

Category: topSource: marketwatch10 min. ago Related News

Maison Luxe Reports Best Ever Annual Revenues of Approximately $ 17.6 mil. for 2022 as Compared to Approximately $ 5.2 mil. for 2021, an Increase of Over 300% and Poised for Rapid Expansion in 2023

FORT LEE, NJ, June 30, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Maison Luxe, Inc. (OTC:MASN) ("Maison Luxe" or the "Company"), an emerging leader in the global custom luxury goods marketplace, reported revenues for the year ending March 31st 2022 of $17,645,898 compared to revenues of $5,284,154 for the year ending March 31st 2021, representing an increase of over 300%. The financial statement can be viewed in its entirety at OTC Markets. Amid the COVID-19 crisis, the global market for Luxury Goods estimated at US $242.8 Billion in the year 2022, is projected to reach a revised size of US $296.9 Billion by 2026, growing at a compound annual growth rate ("CAGR") of 4.8% over the analysis period. Maison Luxe's current CAGR was greater than industry projected average primarily due to execution of the Company's business, sales and marketing plan which nurtured a growing pipeline throughout the year which resulted in many new and repeat customers in this rapidly growing marketplace. Maison Luxe prides itself with excellent products, competitively priced, on time deliveries and friendly and supportive customer service. Anil Idnani, CEO of Maison Luxe, stated, "2022 was a fantastic year for Maison Luxe, but it is just the beginning. We significantly grew our annual revenues by ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzinga26 min. ago Related News

Three Gazprom liquefied natural gas tankers have been seized by Germany for an indefinite period of time

Berlin has also reportedly considered expropriating portions of Russia's Nord Stream 2 pipeline that are in German territory. Mikhail Metzel/Sputnik/AFP via Getty Images Germany seized three Gazprom liquefied natural gas ships on Wednesday, the Telegraph reported. The move comes after Berlin took control of Gazprom's German subsidiary in April. Last week, Germany also reportedly considered expropriating parts of Russia's Nord Stream 2 pipeline. Germany took control of three Gazprom liquefied natural gas tankers Wednesday, the Telegraph reported, as Europe faces an energy crisis and the prospect of rationing later this year.Dynagas LNG Partners said that Germany's control of the ships would continue "for an indefinite period of time." Two of the ships, the Armur River and the Ob River, were chartered by Gazprom until 2028. The third ship, Clean Energy, was originally under Gazprom control until 2026.The move comes after Germany took control of Gazprom's German unit in April to ensure energy supplies after Russia invaded Ukraine. Gazprom Germania has since been renamed Securing Energy for Europe.Germany is racing to store up energy supplies ahead of cold winter months as Russia slashes natural gas deliveries.Last week, Berlin considered expropriating portions of Russia's Nord Stream 2 pipeline that are in German territory and repurpose them for an LNG terminal. Liquefied natural gas, especially sourced from the US, has been in high demand as Europe looks for alternatives to Russian energy. But the situation in Europe remains dire. Last Thursday, German Economy Minister Robert Habeck declared the country is now in the "alarm" phase of its gas emergency plan, signaling that businesses and households need to cut down on consumption and that the government foresees long-term risk of supply shortfalls. And on Tuesday, International Energy Agency Executive Director Faith Birol told Bloomberg that Europe should be prepared to curb its natural gas consumption by up to 30% if Russia completely halts flows."Depending on its timing, a complete cut-off of Russian gas supplies to Europe could result in storage fill levels being well below average ahead of the winter, leaving the EU in a very vulnerable position," Birol said in emailed comments to Bloomberg. Read the original article on Business Insider.....»»

Category: topSource: businessinsider26 min. ago Related News

Putin"s preposterously long table at Kremlin dwarfed by gigantic table at a summit he attended in Turkmenistan

The Russian president previously met with Emmanuel Macron and the United Nations chief at opposite ends of a 13-foot-long table. Russian leader Vladimir Putin was spotted in official photos seated at one end of a ridiculously huge table, along with the heads of state of Azerbaijan, Iran, Kazakhstan and Turkmenistan.Office of the President of Russia Vladimir Putin met with fellow heads of state on Wednesday at a massive table in Turkmenistan. It dwarfs the Kremlin's 13-foot-long table that Putin used to meet Macron and other leaders. Reports have speculated that Putin is very conscious of other people's germs.  Russian President Vladimir Putin met with fellow heads of state on Wednesday at a massive table in Turkmenistan that dwarfed a comically long table at the Kremlin that previously captured global attention.  Meeting with the leaders of Turkmenistan, Iran, Kazakhstan, and Azerbaijan, Putin sat far from other leaders at a massive rectangular table as they discussed cooperation in the Caspian Sea region, the Kremlin said. According to the Turkmenistan government, the 6th Caspian Summit was held at the "luxurious Arkadag Hotel."But before the meeting took place in what Turkmenistan's foreign affairs ministry referred to as the "Large Conference Hall," there was a more intimate meeting at the hotel's "Small Conference Hall." The sixth Caspian Summit featured not one, but two large meeting tables. The second, while far more understated, was still of an above-average size for a meeting table.Office of the President of RussiaThe table at the sixth Caspian Summit was so huge that Putin himself — seated on the far end —can hardly be seen in some official photos..Office of the President of RussiaIt didn't take long for photos of the large rectangular table to make the rounds on social media.Anton Gerashchenko, an advisor to Ukraine's internal affairs minister, tweeted a photo of the table underneath a significantly smaller table used by heads of state at this week's G7 summit in Germany.—Anton Gerashchenko (@Gerashchenko_en) June 29, 2022Various journalists also tweeted their thoughts and made jokes about the table.—max seddon (@maxseddon) June 30, 2022—Alina Selyukh (@alinaselyukh) June 30, 2022This isn't the first time Putin has sat at above-average-sized tables for meetings, but the one in Turkmenistan certainly dwarfs the others. He previously met with French President Emmanuel Macron in February at a 13-foot-long table in Moscow, and the Kremlin broke out the same table for a meeting with United Nations Secretary-General António Guterres a few months later. Russian state media even broadcast Putin meeting with other world leaders at a "long but round" table in May — a step away from the long one. The New York Times previously reported that Putin may be obsessed over his health and safety — especially during the COVID-19 pandemic. Read the original article on Business Insider.....»»

Category: topSource: businessinsider26 min. ago Related News

3 Large-Cap Growth Mutual Funds to Snap Up for Spectacular Returns

Below, we share with you three large-cap growth mutual funds, namely FCGSX, AMAGX and GMUEX. Each has earned a Zacks Mutual Fund Rank #1. Growth funds offer incremental gains on capital by investing in stocks of companies that are projected to rise in value over the long term. However, a relatively higher tolerance for risk is a prerequisite other than the willingness to park money for a long period of time while investing in these securities. This is because these may experience relatively greater fluctuation than the other fund classes.Additionally, large-cap funds are ideal investment options for those seeking a high-return potential accompanied by lesser risk than what small-cap and mid-cap funds bear. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small-caps offer.Below, we share with you three top-ranked large-cap growth mutual funds, namely Fidelity Series Growth Company Fund FCGSX, Amana Mutual Funds Trust Growth Fund Investor AMAGX and GMO U.S. Equity Fund Class III GMUEX. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.Fidelity Series Growth Company Fund invests most of its net assets in companies that have above-average growth potential, according to Fidelity Management & Research Company, based on fundamental analysis factors like financial condition and industry position, as well as market and economic conditions. FCGSX invests in both domestic and foreign issuers.Fidelity Series Growth Company Fund has three-year annualized returns of 23.7%. As of the end of February 2022, FCGSX has 536 issues and has 9.62% of its assets invested in Apple Incorporated.Amana Mutual Funds Trust Growth Fund Investor seeks long-term capital growth according to the Islamic principles by investing most of its net assets in large-cap common stocks of both foreign and domestic issuers across various industries. AMAGX follows a value investment style.Amana Mutual Funds Trust Growth Fund Investorhas three-year annualized returns of 19.0%. AMAGX has an expense ratio of 0.90% compared with the category average of 0.99%.GMO U.S. Equity Fund Class III seeks a high total return by investing most of its net assets in common, preferred and other stocks. GMUEX also invests in convertible securities, depositary receipts, equity real estate investment trusts, and income trusts.GMO U.S. Equity Fund Class IIIhas three-year annualized returns of 17.1%. Simon Harris has been the fund manager of GMUEX since the end of June 2019.To view the Zacks Rank and the past performance of all large-cap growth mutual funds, investors can click here to see the complete list of large-cap growth mutual funds.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>View All Zacks #1 Ranked Mutual FundsWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FCGSX): Fund Analysis Report Get Your Free (GMUEX): Fund Analysis Report Get Your Free (AMAGX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 53 min. ago Related News

Bull of the Day: The Chef"s Warehouse (CHEF)

Despite the weak market, bulls are feasting on this sizzling stock. The Chef’s Warehouse (CHEF) is a Zacks Rank #1 (Strong Buy) that is a distributer of specialty food product in the United Sates. The company is a go to for chefs who operate restaurants, hotels, caterers, bakeries, cruise lines, country clubs, culinary schools and fine dining establishments.The stock is one of the only names you’ll find that is up for 2022. After trading sideways for the first half of the year, the stock fought off market negativity and held the $30-32 area whenever markets sold off.After a big EPS beat, the stock shot to all-time highs. With CHEF up almost 20% on the year, investors are now wondering if this momentum can continue or if the stock has made its move.More about CHEFThe company was founded in 1985 and is headquartered in Ridgefield, Connecticut. It employs 2,700 people and has a market cap of $1.5 billion.The company's product portfolio includes approximately 50,000 stock-keeping units, such as specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products. The stock has a Zacks Style Scores of “A” in Momentum, “B” in Growth, but “D” in Value. The value issue lies with a Forward PE of 33. The stock pays no dividend.Q4 Earnings Beat and GuideIn late April, Chef’s Warehouse reported earnings, seeing a 233% EPS beat. Q4 came in at $0.26 v the -$0.52 expected. Revenues were up significantly year over year, with the company reporting $558.3M v the $282M last year.The company affirmed FY revenues at $2.1-2.2B v the $2.15B expected.CEO Chris Pappas had the following comments on the quarter: “Revenue trends were strong in the fourth quarter as we saw continued growth in consumer confidence in dining out across our markets…December sales and business activity grew steadily as holiday customer traffic drove sequential volume increases commensurate with pre-COVID periods, even with a reduction in larger corporate parties and events.” On June 22nd, the company came out with some positive guidance, citing strong demand. Fiscal year 2022 revenues were taken higher, from the expected $2.26B, to now $2.33-2.43B. They also raised their gross profit outlook from $500-524M to $542-565M.Management said that strength in customer demand and the team’s ability to merchandize their product drove financial performance.Estimates RisingThe earnings and guidance have helped analysts take price targets and estimates higher. After EPS, BMO capital markets reiterated their outperform rating, but lifted their price target from $40 to $44.Over the last 7 days, estimates have shot higher across all time frames. For the current quarter, we have seen estimates jump from $0.23 to $0.35, or 52%. For the current year, we have seen a 56% move higher, with estimates going from $0.78 to $1.22.The Technical Take The stock crashed during COVID, moving from the $40 level to under $5 a share. With COVID mostly past us and restaurants back open, the stock has made a full recovery.After printing all-time highs, CHEF has pulled back a little bit. Investors should eye some moving averages below to get a good entry into the stock. If we get a larger pullback, the $33 level is the 200-day moving average.For those looking to jump in early, the $35.50 area is where the 50-day MA resides. Additionally, if you draw a Fibonacci retracement from June lows to all-time highs, you get a 61.8% retracement at the $35.00 level. So that $35-35.50 spot might be the buy zone for more aggressive traders.In Summary The current market environment is not giving investors a lot of winners. However, Chef’s Warehouse has bee a solid exception. With the stock up almost 20% on the year, the market is trying to tell us something.If the stock can perform under a period of severe stress, then it should really get going when the atmosphere improves. Investors should be buying pullbacks when support shows itself and then look to be rewarded when the broad market improves. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 53 min. ago Related News

Bear of the Day: AZEK (AZEK)

Falling estimates continue to drag this building products stock lower. AZEK (AZEK) is a Zacks Rank #5 (Strong Sell) that engages in designing, manufacturing, and selling building products for residential, commercial, and industrial markets in the United States. AZEK’s main focus is outdoor living products, like decking, railing and trim.As the housing market heated up after COVID, so did the stock. However, with the equity markets moving lower and mortgage rates moving higher, it means less cash for those outdoor projects at home.The stock is well off its highs, but with earnings estimates still heading lower, investors might want to stay away until we see a turn around in earnings.About the Company AZEK is headquartered in Chicago, Illinois. The company was incorporated in 2013 and employs over 2,000 people.In addition to decks for residential houses, AZEK has a commercial segment. This part of the business manufactures engineered polymer materials that is used in various industries, which includes outdoor, graphic displays and signage, educational, and recreational markets, as well as the food processing and chemical industries.AZEK is valued at $2.7 billion and has a Forward PE of 16. The stock holds a Zacks Style Score of “D in Value, “D” in Growth and “F” in Momentum. The stock pays out no dividend.Q1 Earnings The company reported EPS back in early May, seeing a 6% beat on EPS. Revenues came in above expectations at $396.3M v the $369M expected. The company also raised their FY22 revenue guidance and EBITDA.This was eight straight beat and the company has never missed since becoming public. While having a history of beating expectations are great, the market is clearly worried this won’t continue. Analysts have been lowering estimates for the company all year. EstimatesAfter earnings, analysts were positive on demand, but negative on margins and cost headwinds. Inflationary pressures will eat into the bottom line and for that reason, earnings estimates are going lower.For the current quarter, estimates have fallen from $0.32 to 0.27, or 10% over the last 60 days. For the current year, the numbers have dropped 8%, from $1.18 to $1.08.Technical TakeThe stock debuted right after the COVID bottoms and almost doubled from the IPO price. However, since the beginning of 2022, the stock has dropped like a rock, down over 60%.With such little chart history, its hard to tell where the bottom is. Until there is relief in the earnings estimates, the stock will likely continue to bleed lower.If there is a positive catalyst, investors should watch the 50-day moving average. If price got over the area, which is currently at $20, there could finally be a move higher in the name.If the stock did happen to bounce, it would likely be a selling opportunity unless inflationary pressure abates.In SummaryWith mortgage rates going higher and equity markets going lower, there is less money for AZEK’s services. While demand is still healthy, this trend might not continue if the economy worsens. Additionally, cost pressures will eat into margins, putting a squeeze on the bottom line.These are two factors that are giving the bears fuel to sell the stock lower.For now, a better option in the sector might be Comfort Systems (FIX). The stock is a Zacks Rank #2 (Buy) and has held up relatively well over the last six months.      Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The AZEK Company Inc. (AZEK): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 53 min. ago Related News

The 2022 Market Disaster... More Pain To Come

The 2022 Market Disaster... More Pain To Come Authored by Matthew Piepenburg via GoldSwitzerland.com, If you think the current market disaster hurts; it’s gonna get worse despite recent dead cat bounces in U.S. equities. The Big 4: Dead Bonds, Rising Yields, Tanking Stocks & Stagflation For well over a year before fantasy-pushers and politicized, central-bank mouth pieces like Powell and Yellen were preaching “transitory inflation,” or hinting that “we may never see another financial crisis in our lifetime,” we’ve been patiently and bluntly (rather than “gloomily”) warning investors of the “Big Four.” That is, we saw an: 1) inevitable liquidity crisis which would take our 2) zombie bond markets to the floor, yields (and hence interest rates) to new highs and 3) debt-soaked nations and markets tanking dangerously south into 4) the dark days of stagflation. In short, by calmly tracking empirical data and cyclical debt patterns, one does not have to be a market timer, tarot-reader or broken watch of “doom and gloom” to warn of an unavoidable credit, equity, inflation and currency crisis, all of which lead to levels of increasing political and social crisis and ultimately extreme control from the top down. Such are the currents of history and the tides/fates of broke(n) regimes. And that is precisely where we are today—no longer warning of a pending convergence of crises, but already well into a market disaster within the worst macro-economic setting (compliments of cornered “central planners”) that I have ever experienced in my post-dot.com career. But sadly, and I do mean sadly, the worst is yet to come. As always, facts rather than sensationalism confirm such hard conclusions, and hence we turn now to some equally hard facts behind this market disaster. The Ignored Hangover For well over a decade, the post-2008 central bankers of the world have been selling the intoxicating elixir (i.e., lie) that a debt crisis can be solved with more debt, which is then paid for with mouse-click money. Investors drank this elixir with abandon as markets ripped to unprecedented highs on an inflationary wave of money printed out of thin air by a central bank near you. In case you still don’t know what such “correlation” looks like, see below: But as we’ve warned in interview after interview and report after report, the only thing mouse-click money does is make markets drunker rather than immune from a fatal hangover and market disaster. For years, such free money from the global central banks ($35T and counting) has merely postponed rather than outlawed the hangover, but as we are seeing below, the hangover, and puking, has already begun in a stock, credit or currency market disaster near you. Why? Every Market Crisis is a Liquidity Crisis Because the money (i.e., “liquidity”) that makes this drunken fantasy go round is drying up (or “tightening”) as the debt levels are piling up. That is, years and years of issuing IOU’s (i.e., sovereign bonds) has made those IOU’s less attractive, and the solution-myth of creating money out of thin air to pay for those IOUs is becoming less believable as inflation rises like a killer shark from beneath the feet of our money printers. The Most Important Bond in the World Has Lost Its Shine As we’ve warned, the UST is experiencing a liquidity problem. Demand for Uncle Sam’s bar tab (IOU’s) is tanking month, after month, after month. As a result, the price of those bonds is falling and hence their yields (and our interest rates) are rising, creating massive levels of pain in an already debt-saturated world where rising rates kill drunken credit parties (i.e., markets). Toward this end, Wall Street is seeing a dangerous rise in what the fancy lads call “omit days,” which basically means days wherein inter-dealer liquidity for UST’s is simply not available. Such omit days are screaming signs of “uh-oh” which go un-noticed by 99.99% of the consensus-think financial advisors selling traditional stocks and bonds for a fee. As the repo warnings (as well as our written warnings) have made clear since September of 2019, when liquidity in the credit markets tightens, the entire risk asset bubble (stocks, bonds and property) starts to cough, wheeze and then choke to death. Unfortunately, the extraordinary levels of global debt in general, and US public debt in particular, means there’s simply no way to avoid more choking to come The Fed—Tightening into a Debt Crisis? As all debt-soaked nations or regimes since the days of ancient Rome remind us , once debt levels exceed income levels by 100% or more, the only option left is to “inflate away” that debt by debasing (i.e., expanding/diluting) the currency—which is the very definition of inflation. And that inflation is only just beginning… Despite pretending to “control,” “allow” and then “combat” inflation, truth-challenged central bankers like Powell, Kuroda and Lagarde have therefore been actively seeking to create inflation and hence reduce their debt to GDP ratios below the fatal triple digit level. Unfortunately for the central bankers in general and Powell in particular, this ploy has not worked, as the US public debt to GDP ratio continues to stare down the 120% barrel and the Fed now blindly follows a doomed policy of tightening into a debt crisis. This can only mean higher costs of debt, which can only mean our already debt-soaked bond and stock markets have much further to go/tank. Open & Obvious (i.e., Deadly) Bond Dysfunction In sum, what we are seeing from DC to Brussels, Tokyo and beyond is now an open and obvious (rather than pending, theoretical or warned) bond dysfunction thanks to years of artificial bond “accommodation” (i.e., central-bank bond buying with mouse-click currencies). As we recently warned, signals from that toxic waste dump (i.e., market sector) known as MBS (“Mortgage-Backed Securities”) provide more objective signs of this bond dysfunction (market disaster) playing out in real-time. Earlier this month, as the CPI inflation scale went further (and predictably) up rather down, the MBS market went “no bid,” which just means no one wanted to buy those baskets of unloved bonds. This lack of demand merely sends the yields (and hence rates) for all mortgages higher. On June 10, the rates for 30-year fixed mortgages in the U.S. went from 5.5% to 6% overnight, signaling one of the many symptoms of a dying property bull as U.S. housing starts reached 13-month lows and building permits across the nation fell like dominoes. Meanwhile, other warnings in the commercial bond market, from Investment Grade to Junk Bonds, serve as just more symptoms of a dysfunctional “no-income” (as opposed to “fixed income”) U.S. bond market. And in case you haven’t noticed, the CDS (i.e., “insurance”) market for junk bonds is rising and rising. Of course, central bankers like Powell will blame the inevitable death of this U.S. credit bubble on inflation caused by Putin alone rather than decades of central bank drunk driving and inflationary broad money supply expansion. Pointing Fingers Rather than Looking in the Mirror Powell is already confessing that a soft landing from the current inflation crisis is now “out of his hands” as energy prices skyrocket thanks to Putin. There’s no denying the “Putin effect” on energy prices, but what’s astounding is that Powell, and other central bankers have forgotten to mention how fragile (i.e., bloated) Western financial systems became under his/their watch. Decades of cramming rates to the floor and printing trillions from thin air has made the U.S. in particular, and the West in general, hyper-fragile; that is: Too weak to withstand pushback from less indebted bullies like Putin. But as we warned almost from day 1 of the February sanctions against Russia, they were bound to back-fire big time and accelerate an unraveling inflationary disaster in the West. The West & Japan: Overplaying the Sanction Hand As we warned in February, Russia is squeezing the sanction-makers with greater pain than history-and-math-ignorant “statesmen” like Kamala Harris could ever grasp. From here in Europe, Western politicians are beginning to wonder if following the U.S. lead (coercion?) in chest-puffing was a wise idea, as gas prices on the continent skyrocket. In this backdrop of rising energy costs, Germany, whose PPI is already at 30%, has to be asking itself if it can afford tough-talk in the Ukraine as Putin threatens to cut further energy supplies. In this cold reality, the geniuses at the ECB are realizing that the very “state of their European Union” is at increasing risk of dis-union as citizens from Italy to Austria bend under the weight of higher prices and falling income. As of this writing, the openly nervous ECB is thus inventing clever plans/titles to “fight fragmentation” within the EU by, you guessed it: Printing more money out of thin air to control bond yields and cap borrowing costs. Of course, such pre-warned and inevitable (as well as politicized) versions of yield curve controls (YCC) are themselves, just well…Inflationary. Even outside the EU, the UK’s Prime Minister is discussing the idea of handing out free money to the bottom 30% of its population as a means to combat inflating prices, equally forgetting to recognize that such handouts are by their very nature just, well…Inflationary. (By the way, such monetary policies are an open signal to short the Euro and GBP against the USD…) Looking further east to that equally embarrassing state of the union in Japan, we see, as warned countless times, a tanking Yen out of a Japan that knows all too well the inflationary sickness that a non-stop money printer can create. Like the UST, the Japanese JGB is as unloved as a pig in lipstick. Prices are falling and yields are rising. As demand for Japanese IOU’s falls, yields and rates are rising, compelling more YCC (i.e., money printing) from the Bank of Japan as the now vicious (and well…inflationary) circle of printing more currencies to pay for more debt/IOUs spins/spirals fatally round and round. By the way, and as part of our continued warning and theme of the slow process of de-dollarizationwhich the sanctions have only accelerated, it would not surprise us to see Japan making a similar “China-like” move to buy its Russian oil in its own currency rather than the USD. Just saying… Don’t Be (or buy) a Dip As indicated above, trying to combat inflation with rate hikes is not only a joke, it creates a market disaster when a nation’s debt to GDP is at 120%. To fight inflation, rates need be at a “neutral level,” (i.e., above inflation), and folks, that would mean 9% rates at the current 8%+ CPI level. That aint gonna happen… At $30T+ of government debt and rising, the Fed can NEVER use rising rates to fight inflation. End of story. The days of Volcker rate hikes (when public debt was $900B not $30T) are gone. But the fickle Fed can raise rates high enough to kill a securities bubble and create “asset-bubble deflation,” which is precisely what we are seeing in real time, and this market disaster is only going to get worse. In short, if you are buying this “dip,” you may want to think again. As June trade tapes remind, the Dow dipped below 30000, and the S&P 500 reported an ominous 3666, already losing more than 20% despite remaining grossly over-valued as it slides officially into bear territory. As for the NASDAQ’s -30% YTD loss, well, it’s embarrassing… Many, of course, will buy this dip, as many forget the data, facts and traps of dead-cat bounces. Toward this end, it’s worth reminding that 12 of the top 20 one-day rallies in the NASDAQ occurred after that market began a nearly 80% plunge between 2000 and 2003. Similarly, the S&P saw 9 of its top 20 one-day rallies following the 1929 crash in which that market lost 86% from its highs. In short: These bear markets are not even close to their bottom, and today’s dip-buy may just be a trap, unless you think you can time a one-day rally amidst years of falling assets. Markets won’t and don’t recover from the bear’s claws until spikes are well above two standard deviations. We are not there yet, which means we have much further to fall. Capitulation in U.S. stocks won’t even be a discussion until the DOW is below 28,400 and the S&P blow 3500. Over the course of this bear, I see both falling much further. As we’ve warned, mean-reversion is a powerful force and we see deeper lows/reversions ahead: Toward that end, we see an SPX which could easily fall at least 15% lower (i.e., to at least 1850) than the “Covid crash” of March 2020. Based upon historic ranges, stocks won’t be anywhere near “fair value” until we see a Shiller PE at 16 or a nominal PE of 9-10. Index bubbles have been driven by ETF inflation which followed the Fed liquidity binge—and those ETF’s will fall far faster in a market disaster than they grew in a Fed tailwind. And if you still think meme stocks, alt coins or the Fed itself can save you from further market disaster, we’d (again) suggest you think otherwise. Looking at historical data on prior crashes from 1968 to the present, the average bear crash is at around -33%. Unfortunately, there’s nothing “average” about this bear or the further falls to come. The Shiller PE, for example, has another 40% to go (down) before stocks approach anything close to “fair value.” In the 1970’s, for example, when we saw the S&P lose 48%, or even in 2008, when it lost 56%, U.S. debt to GDP levels were ¼ of what they are today. Furthermore, in the 1970’s the average consumer savings rate was 12%; today that rate is 4%. Stated simply, the U.S., like the EU and Japan, is too debt-crippled and too GDP-broke to make this bear short and sweet. Instead, it will be long and mean, accompanied by stagflation and rising unemployment. The Fed knows this, and is, in part, raising rates today so that will have something—anything—to cut in the market disaster tomorrow. But that will be far too little, and far too late. And, Gold… Of course, the Fed, the IMF, the Davos crowd, the MSM and the chest-puffing sanction (back-firing) West will blame the current and future global market disaster on a virus with a 99% survival rate and an avoidable war in a corner of Europe that neither Biden nor Harris could find on a map. Instead, and as most already know, the real cause of the greatest market bubble and bust in the history of modern capital markets lies in the reflection of central bankers and politicians who bought time, votes, market bubbles, wealth disparity and cancerous inflation with a mouse-click. History reminds us of this, current facts confirm it. For now, the Fed will tighten, and thereby unleash an even angrier bear. Then, as we’ve warned, the Fed will likely pivot to more rate cuts and even more printed (inflationary) currencies as the US, the EU and Japan engage in more inflationary YCC and an inevitable as well as disorderly “re-set” already well telegraphed by the IMF. In either/any scenario, gold gets the last laugh. Gold, of course, has held its own even as rates and the USD have risen—typically classic gold headwinds. When markets tank and the Fed pivots, yields on the 10Y could fall as global growth weakens—thus providing a gold tailwind. Furthermore, the USD’s days of relative strength are equally numbered, as is the current high demand for US T-Bill-backed collateral for that USD. As the slow trend toward de-dollarization increases, so will the tailwind and hence price of gold increase as the USD’s credibility decreases. In the interim, the fact that gold has stayed strong despite the temporary spike in the USD speaks volumes. In the interim, Gold outperforms tanking stocks by a median range of 45%, and when the inflationary pivot to more QE returns, gold protects longer-term investors from grotesquely (and increasingly) debased currencies. And when (not if) the re-set toward CBDC (central bank digital currencies) finally arrives, that blockchain eYen and eDollar will need a linkage to a neutral commodity not to an empty “faith & trust” in just another new fiat/fantasy with an electronic profile. As we’ve been saying for decades: Gold Matters. Tyler Durden Thu, 06/30/2022 - 07:20.....»»

Category: blogSource: zerohedge1 hr. 54 min. ago Related News

Stocks, Cryptos Tumble To Close Out Catastrophic First-Half

Stocks, Cryptos Tumble To Close Out Catastrophic First-Half It was supposed to be a 7% ramp into month-end on billions in pension fund residual buying. Instead, it ended up being more or less the opposite, with crypto-led liquidations dragging futures and global markets lower, and extending Wednesday losses after central bankers issued warnings on inflation and fueled concern that aggressive policy will end with a hard-landing recession, which increasingly more now see as being 2022 business, an outcome that now appears assured especially after yesterday's disastrous guidance cut from RH, the second in three weeks! Recession fears and inflation woes may be prolonged by today's PCE deflator report. The consumer price gauge favored by the Fed may have picked up to 6.4% last month from 6.3%. Personal income growth probably edged up but Bloomberg Economics highlights an anticipated decline in real personal spending as a major worry. Meanwhile, China’s economy showed further signs of improvement in June with a strong pickup in services and construction, even if the latest Chinese PMI print came slightly below expectations. Also overnight, Russia said it withdrew troops from Ukraine’s Snake Island in the Black Sea after Ukraine said its forces drove Russian troops from the area. In any case, with zero demand from pensions so far (even though the continued selling in stocks and buying in bonds will only make the imabalnce bigger), overnight Nasdaq 100 contracts dropped 1.8% while S&P 500 futures declined 1.3%, and cryptos crumbled, with bitcoin dragged back below $19000 and Ether on the verge of sliding below $1000. The tech-heavy gauge managed to end Wednesday’s trading slightly higher, while the S&P 500 fell for a third straight day. In Europe, the Stoxx Europe 600 Index slid 1.9%. Treasuries gained, the dollar was steady and gold declined and crude oil futures edged lower again. Which brings us to the last trading day of a quarter for the history books: the S&P 500 is set for its biggest 1H decline since 1970 and the Nasdaq 100 since 2002, the height of the dot.com bust. The Stoxx 600 is set for the worst 1H since 2008, the height of the GFC.  Traders have ramped up bets that the global economy will buckle under central bank tightening campaigns -- and that policy makers will eventually backpedal. The bond market shifted to price in a half-point rate cut in the Federal Reserve’s benchmark rate at some point in 2023. On Wednesday, during the annual ECB annual forum, Fed Chair Jerome Powell and his counterparts in Europe and the UK warned inflation is going to be longer lasting. A view that central banks need to act fast on rates because they misjudged inflation has roiled markets this year, with global stocks about to close out their worst quarter since the three months ended March 2020. “Markets are worried about growth as central bankers continue to emphasize that bringing down inflation is their overriding objective, and that it may take time to bring inflation down,” said Esty Dwek, chief investment officer at Flowbank SA. “We still haven’t seen total capitulation in markets, so further downside is possible.” Meanwhile, the cost of insuring European junk bonds against default crossed 600 basis points for the first time in two years on Thursday. And speaking of Europe, stocks are also down over 2% in early trading, with all sectors in the red. DAX and CAC underperform at the margin with autos, consumer discretionary and banking sectors the weakest within the Stoxx 600.  Here are some of the biggest European movers today: Uniper shares slump as much as 23% after the German utility withdrew its outlook and said it was discussing a possible bailout from the German government following Russia’s move to curb natural gas deliveries. SAP sinks as much as 6.5% after Exane BNP Paribas downgraded stock to neutral from outperform, saying it sees risks on demand side in the near term as software spending decisions come under increased scrutiny. Sanofi shares decline as much as 4.5% after the French drugmaker said the FDA placed late-stage clinical trials of tolebrutinib on partial hold in US because of concerns about liver injuries. European semiconductor stocks fell, following peers in the US and Asia lower amid growing concerns that the industry might face a downturn soon as chip stockpiles build. ASML drops as much as 3.4%, Infineon -4.1%, STMicro -3.1% Norsk Hydro shares slide as much as 6% amid metals decline and as DNB cuts the stock to sell from hold, citing concerns about rising aluminum supply. Stainless steel stocks in Europe fall, with Morgan Stanley saying the settlement on the latest ferrochrome benchmark missed its expectations. Outokumpu shares down as much as 6.6%, Aperam -7.2%, Acerinox -4% Saab shares jump as much as 8.4%, after getting an order worth SEK7.3b from the Swedish Defence Materiel Administration for GlobalEye Airborne Early Warning and Control aircraft. Orsted shares rise as much as 2.5%, before paring some of the gains. HSBC raises to buy from hold, saying any further downside for the wind farm operator looks limited. Bunzl shares rise as much as 2.6% after the specialist distribution company said it now expects very good revenue growth in 2022. Grifols shares rise as much as 7.8% after slumping on Wednesday, as the company says that the board isn’t analyzing any capital increase “for the time being.” Earlier in the session, Asian stocks fell for a second day as tech-heavy indexes in Taiwan and South Korea continued to get pummeled amid concerns over the potential for aggressive monetary tightening in the US to rein in inflation.  The MSCI Asia Pacific Index declined as much as 1.2%, dragged down by technology shares including TSMC, Alibaba and Tencent. Taiwan slid more than 2%, while gauges in Japan, South Korea, Australia dropped more than 1%.  Stocks in mainland China rose more than 1% after the economy showed further signs of improvement in June with a strong pickup in services and construction as Covid outbreaks and restrictions were gradually eased. Traders are also watching Chinese President Xi Jinping’s trip to Hong Kong, his first time outside of the mainland since 2020.  Asian stocks are struggling to recover from a May low as the threat of higher US rates outweighs China’s emergence from strict Covid lockdowns and its pledge of stimulus measures. While mainland Chinese stocks led gains globally this month, the rest of the markets in the region -- especially those heavy with technology stocks and exporters -- saw hefty outflows of foreign funds.  “Investors continue to assess recession and also inflation risks,” Marcella Chow, JPMorgan Asset Management’s global market strategist, said in an interview with Bloomberg TV. “This tightening path has actually increased the chance of a slower economic growth going forward and probably has brought forward the recession risks.” Asian stocks are set to post a more than 12% loss this quarter, the worst since the one ended March 2020 during the pandemic-induced global market rout. Japanese stocks declined after the release of China’s data on manufacturing and non-manufacturing PMIs that showed slower than expected improvements.  The Topix Index fell 1.2% to 1,870.82 as of market close Tokyo time, while the Nikkei declined 1.5% to 26,393.04. Sony Group contributed the most to the Topix Index decline, falling 3.4%. Out of 2,170 shares in the index, 531 rose and 1,574 fell, while 65 were unchanged. “Although China is recovering from a lockdown, business sentiment in the manufacturing industry is deteriorating around the world,” said Tomo Kinoshita, global market strategist at Invesco Asset Management China’s Economy Shows Signs of Improvement as Covid Eases. Indian stock indexes posted their biggest quarterly loss since March 2020 as the global equity market stays rattled by high inflation and a weakening outlook for economic growth.  The S&P BSE Sensex ended little changed at 53,018.94 in Mumbai on Thursday, while the NSE Nifty 50 Index dropped 0.1%. The gauges shed more than 9% each in the June quarter, their biggest drop since the outbreak of pandemic shook the global markets in March 2020. The main indexes have fallen for all but one month this year as surging cost pressures forced India’s central bank to raise rates twice and tighten liquidity conditions. The selloff is also partly driven by record foreign outflows of more than $28b this year.  Despite the turmoil in global markets, Indian stocks have underperformed most Asian peers, partly helped by inflows from local institutions, which made net purchases of more than $30b of local stocks. “Investors worry that the latest show of central bank determination to tame inflation will slow economies rapidly,” HDFC Securities analyst Deepak Jasani wrote in a note.  Fourteen of the 19 sector sub-gauges compiled by BSE Ltd. fell Thursday, with metal stocks leading the plunge. The expiry of monthly derivative contracts also weighed on markets. For the June quarter, metal stocks were the worst performers, dropping 31% while information technology gauge fell 22%. Automakers led the three advancing sectors with 11.3% gain. Australian stocks also tumbled, with the S&P/ASX 200 index falling 2% to close at 6,568.10, weighed down by losses in mining, utilities and energy stocks.  In New Zealand, the S&P/NZX 50 index fell 0.8% to 10,868.70 In rates, treasuries advanced, led by the belly of the curve. German bonds surged, led by the short-end and outperforming Treasuries. US yields richer by as much as 5.4bp across front-end and belly of the curve which outperforms, steepening 2s10s, 5s30s by 2bp and 2.8bp; wider bull-steepening move in progress for German curve with yields richer by up to 13.5bp across front-end with 2s10s wider by 3.5bp on the day. US 10-year yields around 3.055%, richer by 3.5bp. Money markets aggressively trimmed ECB tightening bets on relief that French June inflation didn’t come in above the median estimate. Bonds also benefitted from haven buying as stocks slide. Month-end extension flows may continue to support long-end of the Treasuries curve. bunds outperform by 7bp in the sector. IG issuance slate empty so far; Celanese Corp. pushed back plans to issue in euros and dollars, most likely to next week, after deals struggled earlier this week. Focal points of US session include PCE deflator and MNI Chicago PMI.  In FX, the Bloomberg Dollar Spot Index was steady as the greenback traded mixed against its Group-of-10 peers. The yen advanced and Antipodean currencies were steady against the greenback. French inflation quickened to the fastest since the euro was introduced. Steeper increases in energy and food costs drove consumer-price growth to 6.5% in June from 5.8% in May . Sweden’s krona swung to a loss. It briefly advanced earlier after the Riksbank raised its policy rate by 50bps, as expected, signaled faster rate hikes and a quicker trimming of the balance sheet. The pound rose, snapping three days of losses against the dollar. UK household incomes are on their longest downward trend on record, as the nation’s cost of living crisis saps the spending power of British households. Separate figures showed that the current-account deficit widened sharply to £51.7 billion ($63 billion) in the first quarter. The yen rose and the Japan’s bonds inched up. The BOJ kept the amount and frequencies of planned bond purchases unchanged in the July-September period. The Australian dollar reversed a loss after data showed China’s official manufacturing purchasing managers index rose above 50 for the first time since February in a sign of improvement in the world’s second largest economy. Bitcoin is on track for its worst quarter in more than a decade, as more hawkish central banks and a string of high-profile crypto blowups hammer sentiment. The 58% drawdown in the biggest cryptocurrency is the largest since the third quarter of 2011, when Bitcoin was still in its infancy, data compiled by Bloomberg show. In commodities, WTI trades a narrow range, holding below $110. Brent trades either side of $116. Most base metals trade in the red; LME zinc falls 3.1%, underperforming peers. Spot gold falls roughly $3 to trade near $1,814/oz. Bitcoin slumps over 6% before finding support near $19,000. Looking to the day ahead now, data releases include German retail sales for May and unemployment for June, French CPI for June, the Euro Area unemployment rate for May, Canadian GDP for April, whilst the US has personal income and personal spending for May, the weekly initial jobless claims, and the MNI Chicago PMI for June. Market Snapshot S&P 500 futures down 1.2% to 3,775.75 STOXX Europe 600 down 1.8% to 406.18 MXAP down 1.0% to 158.01 MXAPJ down 1.1% to 524.78 Nikkei down 1.5% to 26,393.04 Topix down 1.2% to 1,870.82 Hang Seng Index down 0.6% to 21,859.79 Shanghai Composite up 1.1% to 3,398.62 Sensex up 0.2% to 53,136.59 Australia S&P/ASX 200 down 2.0% to 6,568.06 Kospi down 1.9% to 2,332.64 Gold spot down 0.2% to $1,814.91 US Dollar Index little changed at 105.04 German 10Y yield little changed at 1.42% Euro little changed at $1.0443 Brent Futures down 0.4% to $115.85/bbl Top Overnight News from Bloomberg The surge in the dollar has set Asian currencies on course for their worst quarter since the 1997 financial crisis and created a dilemma for central bankers French Finance Minister Bruno Le Maire said the EU can deliver the global minimum corporate tax with or without the support of Hungary, circumventing Budapest’s veto earlier this month just as the bloc was on the brink of a agreement German unemployment unexpectedly rose, snapping 15 straight months of decline as refugees from the war in Ukraine were included in those searching for work The SNB bought foreign exchange worth 5.7 billion francs ($5.96 billion) in the first quarter of 2022 as the franc sharply appreciated against the euro and briefly touched parity in March The ECB plans to ask the region’s lenders to factor in the economic hit of a potential cut off of Russian gas when considering payouts to shareholders European stocks were poised for their biggest drop in any half-year period since 2008, as investors focused on the prospects for economic slowdown and stubbornly high inflation in the region New Zealand will enter a recession next year that could be deeper than expected, Bank of New Zealand economists said after a survey showed business sentiment continues to slump A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks were varied at month-end amid a slew of data releases including mixed Chinese PMIs. ASX 200 was dragged lower by weakness in energy, miners and the top-weighted financials sector. Nikkei 225 declined after disappointing Industrial Production data and with Tokyo raising its virus infection level. Hang Seng and Shanghai Comp. were somewhat mixed with Hong Kong indecisive and the mainland underpinned after the latest Chinese PMI data in which Manufacturing PMI printed below estimates but Non-Manufacturing PMI firmly surpassed forecasts and along with Composite PMI, all returned to expansion territory. Top Asian News NATO Secretary General Stoltenberg said China's growing assertiveness has consequences for the security of allies, while he added China is not our adversary, but we must be clear-eyed about the serious challenges it presents. US blacklisted 5 Chinese firms for allegedly helping Russia in which Connec Electronic, King Pai Technology, Sinno Electronics, Winnine Electronic and World Jetta Logistics were added to the entity list which restricts access to US technology, according to WSJ. Japan's government cut its assessment of industrial production and noted that production is weakening, while it stated that Japan's motor vehicle production declined 8% M/M and that industrial production likely saw the largest impact of Shanghai's COVID-19 lockdown in May, according to Reuters. Tokyo metropolitan government will reportedly increase COVID infections level to the second-highest, according to FNN. It’s been a downbeat session for global equities thus far as sentiment deteriorates further. European bourses are lower across the board, with losses extending during early European hours. European sectors are all in the red but portray a clear defensive bias. Stateside, US equity futures have succumbed to the glum mood, with the NQ narrowly underperforming. Top European News Riksbank hiked its Rate by 50bps to 0.75% as expected, and said the rate will be raised further and it will be close to 2% at the start of 2023. Bank said the balance sheet its to shrink faster than previously flagged, and suggested that policy rate will increase faster if needed. Click here for details. Riksbank's Ingves said inflation over forecast probably not enough for Riksbank to hold extra policy meeting in summer. Ingves added that if the situation requires a 75bps hike, then Riksbank will carry out a 75bps hike. Orsted Gains as HSBC Upgrades With Shares Seen ‘Good Value’ Aston Martin Extends Losses as Carmaker Reportedly Seeking Funds Climate Litigants Look Beyond Big Oil for Their Day in Court Ukraine Latest: Putin Warns NATO on Moving Military to Nordics FX DXY extends on gains above 105.00, but could see more upside on safe haven demand and residual rebalancing flows over fixes - EUR/USD inches towards 1.0400 to the downside. Yen regroups as yields drop and risk sentiment deteriorates to compound corrective price action. Franc unwinds some of its recent outperformance and Loonie lose traction from oil ahead of Canadian GDP. Swedish Crown unable to take advantage of hawkish Riksbank hike in face of risk aversion - Eur/Sek stuck in a rut close to 10.7000. Pound finds some underlying bids into 1.2100 and Kiwi at 0.6200, while Aussie holds above 0.6850 with encouragement from China’s services PMI that also propped the Yuan. Fixed Income Bonds on bull run into month, quarter and half year end - Bunds top 148.00 at best, Gilts approach 113.50 and 10 year T-note just a tick away from 118-00. Debt in demand on safe haven grounds rather than duration as curves steepen on less hawkish/more dovish market pricing. Italian supply comfortably covered to keep BTP futures propped ahead of US PCE data and yet another speech from ECB President Lagarde. Commodities WTI and Brent front-month futures are resilient to the broader risk downturn, and firmer Dollar as OPEC+ member members gear up for what is expected to be a smooth meeting. Spot gold is uneventful but dipped under yesterday's low, with potential support at the 15th June low at USD 1,806.59/oz. Base metals are softer across the board amid the broader risk profile. Dalian and Singapore iron ore futures were on track for quarterly losses. Ship with 7,000 tonnes of grain leaves Ukraine port, according to pro-Russia officials cited by AFP. US Event Calendar 08:30: June Initial Jobless Claims, est. 229,000, prior 229,000 08:30: June Continuing Claims, est. 1.32m, prior 1.32m 08:30: May Personal Income, est. 0.5%, prior 0.4% 08:30: May Personal Spending, est. 0.4%, prior 0.9% 08:30: May Real Personal Spending, est. -0.3%, prior 0.7% 08:30: May PCE Deflator MoM, est. 0.7%, prior 0.2% 08:30: May PCE Deflator YoY, est. 6.4%, prior 6.3% 08:30: May PCE Core Deflator YoY, est. 4.8%, prior 4.9% 08:30: May PCE Core Deflator MoM, est. 0.4%, prior 0.3% 09:45: June MNI Chicago PMI, est. 58.0, prior 60.3 DB's Jim Reid concludes the overnight wrap We’ve just released the results of our monthly EMR survey that we conducted at the start of the week. It makes for some interesting reading, and we’re now at the point where 90% of respondents are expecting a US recession by end-2023, which is up from just 35% in our December survey. That echoes our own economists’ view that we’re going to get a recession in H2 2023, and just shows how sentiment has shifted since the start of the year as central banks have begun hiking rates. When it comes to people’s views on where markets are headed next, most are expecting many of the themes from H1 to continue, with a 72% majority thinking that the S&P 500 is more likely to fall to 3,300 rather than rally to 4,500 from current levels, whilst 60% think that Treasury yields will hit 5% first rather than 1%. Click here to see the full results. When it comes to negative sentiment we’ll have to see what today brings us as we round out the first half of the year, but if everything remains unchanged today we’re currently set to end H1 with the S&P 500 off to its worst H1 since 1970 in total return terms. And there’s been little respite from bonds either, with US Treasuries now down by -9.79% since the start of the year, so it’s been bad news for traditional 60/40 type portfolios. Ultimately, a large reason for that has been investors’ fears that ongoing rate hikes to deal with inflation will end up leading to a recession, and yesterday saw a continuation of that theme, with Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey all reiterating their intentions in a panel at the ECB’s Forum to return inflation back to target. In terms of that panel, there weren’t any major headlines on policy we weren’t already aware of, although there was a collective acknowledgement of the risk that inflation could become entrenched over time and the need to deal with that. Fed Chair Powell described the US economy as in “strong shape”, but one that ultimately requires much tighter financial conditions to bring inflation back to target. Year-end fed funds expectations remained steady in response, down just -0.7bps to 3.45%. However, further out the curve the simmering slower growth narrative continued to grip markets and sent 10yr Treasury yields -8.2bps lower to 3.09%, and the 2s10s another -1.1bps flatter to 4.7bps. In line with a tighter Fed policy path and slower growth, 10yr breakevens drove the move in nominal yields, falling -8.2bps to 2.39%, their lowest levels since January, having entirely erased the gains seen after Russia’s invasion of Ukraine, when it peaked above 3% at one point in April. Along with 2s10s flattening, the Fed’s preferred measure of the near-term risk of recession, the forward spread (the 18m3m – 3m), similarly flattened by -5.7bps, hitting its lowest level in nearly four months at 154bps. And thismorning there’s only been a partial reversal of these trends, with 10yr Treasury yields (+1.3bps) edging back up to 3.10% as we go to press. Over in equities, the S&P 500 bounced around but finished off of its intraday lows with just a -0.07% decline, again with the macro view likely skewed by quarter-end rebalancing of portfolios. The NASDAQ was similarly little changed on the day, falling a mere -0.03%. In terms of the ECB, President Lagarde said on that same panel that she didn’t think “we are going back to that environment of low inflation” that was present before the pandemic. But when it came to the actual data yesterday there was a pretty divergent picture. On the one hand, Spain’s CPI for June surprised significantly on the upside, with the annual inflation rising to +10.0% (vs. +8.7% expected) on the EU’s harmonised measure. But on the other, the report from Germany then surprised some way beneath expectations, coming in at +8.2% on the EU-harmonised measure (vs. +8.8% expected). So mixed messages ahead of the flash CPI print for the entire Euro Area tomorrow. As in the US, there was a significant rally in European sovereign bonds, with yields on 10yr bunds (-10.7bps), OATs (-10.7bps) and BTPs (-16.0bps) all moving lower on the day. Equities also lost significant ground amidst the risk-off tone, and the STOXX 600 shed -0.67% as it caught up with the US losses from the previous session. That risk-off tone was witnessed in credit as well, where iTraxx Crossover widened +21.5bps to a post-pandemic high. At the same time, there were further concerns in Europe on the energy side, with natural gas futures up by +8.06% to a three-month high of €139 per megawatt-hour, which follows a reduction in capacity yesterday at Norway’s Martin Linge field because of a compressor failure. Whilst monetary policy has been the main focus for markets lately, we did get some headlines on the fiscal side yesterday too, with a report from Bloomberg that Senate Democrats were working on an economic package that had smaller tax increases in order to reach a deal with moderate Democratic senator Joe Manchin. For reference, the Democrats only have a majority in the split 50-50 senate thanks to Vice President Harris’ tie-breaking vote, so they need every Democrat Senator on board in order to pass legislation. According to the report, the plan would be worth around $1 trillion, with half allocated to new spending, and the other half cutting the deficit by $500bn over the next decade. Overnight in Asia we’ve seen a mixed market performance overnight. Most indices are trading lower, including the Nikkei (-1.45%) and the Kospi (-0.81%), but Chinese equities have put in a stronger performance after an improvement in China’s PMIs in June, and the CSI 300 (+1.62%) and the Shanghai Comp (+1.31%) have both risen. That came as manufacturing activity expanded for the first time in four months, with the PMI up to 50.2 in June (vs. 50.5 expected) from 49.6 in May. At the same time, the non-manufacturing climbed to 54.7 points in June, up from 47.8 in May, which also marked the first time it’d been above the 50 mark since February. Nevertheless, that positivity among Chinese equities are proving the exception, with equity futures in the US and Europe pointing lower, with those on the S&P 500 (-0.28%) looking forward to a 4th consecutive daily decline as concerns about a recession persist. When it came to other data yesterday, the third estimate of US GDP for Q1 saw growth revised down to an annualised contraction of -1.6% (vs. -1.5% second estimate). Separately, the Euro Area’s M3 money supply grew by +5.6% year-on-year in May (vs. +5.8% expected), which is the slowest pace since February 2020. To the day ahead now, data releases include German retail sales for May and unemployment for June, French CPI for June, the Euro Area unemployment rate for May, Canadian GDP for April, whilst the US has personal income and personal spending for May, the weekly initial jobless claims, and the MNI Chicago PMI for June. Tyler Durden Thu, 06/30/2022 - 07:58.....»»

Category: blogSource: zerohedge1 hr. 54 min. ago Related News

Acuity Brands Reports Fiscal 2022 Third-Quarter Results

Increased Net Sales 18% Over the Prior Year Increased Diluted EPS 30% Over the Prior Year Deployed $296 million to Share Repurchases ATLANTA, June 30, 2022 (GLOBE NEWSWIRE) -- Acuity Brands, Inc. (NYSE:AYI) (the "Company"), a market-leading industrial technology company, announced net sales of $1.1 billion in the third quarter of fiscal 2022 ended May 31, 2022, an increase of 17.9 percent or $160.9 million, compared to the same period in fiscal 2021. Diluted earnings per share ("EPS") was $3.07 in the third quarter of fiscal 2022, an increase of 29.5 percent, or $0.70, compared to the same period in fiscal 2021. "I am proud of our teams' continued strong performance through the third quarter of fiscal 2022," stated Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. "We are executing consistently as a result of significant and ongoing improvements in our business, and we continue to generate value for shareholders through share repurchases." Gross profit was $445.1 million in the third quarter of fiscal 2022, an increase of $58.5 million, or 15.1 percent, compared to the same period in fiscal 2021. The increase in gross profit was driven by higher sales and cost controls. Gross profit as a percent of net sales was 42.0 percent in the third quarter of fiscal 2022. Operating profit was $142.7 million in the third quarter of fiscal 2022, an increase of $24.6 million, or 20.8 percent, compared to the same period in fiscal 2021. The increase in operating profit was a direct result of the improvement in gross profit, partially offset by higher operating expenses. Operating profit as a percent of net sales was 13.5 percent in the third quarter of fiscal 2022, an increase of 40 basis points from 13.1 percent in the same period of fiscal 2021. Adjusted operating profit was $162.8 in the third quarter of fiscal 2022, an increase of $26.0 million, or 19.0 percent, compared to the same period in fiscal 2021. Adjusted operating profit as a percent of net sales was 15.3 percent in the third quarter of fiscal 2022, an increase of 10 basis points from 15.2 percent in the same period of fiscal 2021. Net income was $105.7 million in the third quarter of fiscal 2022, an increase of $20.0 million, or 23.3 percent, compared to the same period in fiscal 2021. Diluted earnings per share was $3.07 in the third quarter of fiscal 2022, an increase of $0.70, or 29.5 percent, from $2.37 in the same period of fiscal 2021. Adjusted net income was $121.3 in the third quarter of fiscal 2022, an increase of $20.9 million, or 20.8 percent, compared to the same period in fiscal 2021. Adjusted diluted earnings per share was $3.52 in the third quarter of fiscal 2022, an increase of $0.75, or 27.1 percent, from $2.77 in the same period of fiscal 2021. Segment Performance Acuity Brands Lighting and Lighting Controls ("ABL") ABL generated net sales of $1.0 billion in the third quarter of fiscal 2022, an increase of $158.4 million, or 18.6 percent, compared to the same period in fiscal 2021. The acquisition of the Osram DS business contributed approximately 3 percent to ABL net sales in the third fiscal quarter of 2022. The Independent Sales Network generated sales of $725.9 million, an increase of $97.9 million, or 15.6 percent, compared to the same period in fiscal 2021. The Direct Sales Network generated sales of $96.1 million, approximately flat compared to the same period in fiscal 2021. The Corporate Accounts channel generated sales of $59.1 million, an increase of $15.1 million, or 34.3 percent, compared to the same period in fiscal 2021. The Retail channel generated sales of $44.7 million, an increase of $8.6 million, or 23.8 percent, compared to the same period in fiscal 2021. ABL operating profit was $149.6 million in the third quarter of fiscal 2022, an increase of $23.1 million, or 18.3 percent, compared to the same period in fiscal 2021. ABL Operating profit as a percent of ABL net sales was 14.8 percent in the third quarter of fiscal 2022, a decrease of 10 basis points from 14.9 percent in the same quarter of fiscal 2021. ABL adjusted operating profit was $159.8 million in the third quarter of fiscal 2022, an increase of $24.0 million, or 17.7 percent, compared to the same period in fiscal 2021. ABL Adjusted operating profit as a percent of ABL net sales was 15.8 percent in the third quarter of fiscal 2022, a decrease of 20 basis points from 16.0 percent, in the same quarter of fiscal 2021. Intelligent Spaces Group ("ISG") ISG generated net sales of $58.3 million in the third quarter of fiscal 2022, an increase of $2.9 million, or 5.2 percent, compared to the same period in fiscal 2021. ISG operating profit was $9.2 million in the third quarter of fiscal 2022, an increase of $2.0 million, or 27.8 percent, compared to the same quarter of fiscal 2021. ISG Operating profit as a percent of ISG net sales was 15.8 percent in the third quarter of fiscal 2022, an increase of 280 basis points from 13.0 percent in the third quarter of fiscal 2021. ISG adjusted operating profit was $13.6 million for the third quarter of fiscal 2022, an increase of $2.5 million, or 22.5 percent, over the prior year. ISG Adjusted operating profit as a percent of ISG net sales was 23.3 percent for the third quarter of fiscal 2022, an increase of 330 basis points from 20.0 percent, in the third quarter of fiscal 2021. Cash Flow and Capital Allocation Net cash from operating activities was $165.7 million, a decrease of $150.5 million, or 47.6 percent, in the first nine months of fiscal 2022, compared to the same period in fiscal 2021, as we allocated capital to inventory in order support our growth. During the first nine months of fiscal 2022, the Company repurchased 2.3 million shares of common stock for a total of $405 million. Post Quarter Events The Company today announced the completion of a new $600 million revolving credit facility. The new five-year facility incorporates $200 million of additional borrowing capacity and improved pricing as compared to the prior revolving credit facility. Additional information will be available in our third quarter 10-Q filing. Today's Call Details The Company is planning to host a conference call at 8:00 a.m. (ET) today, Thursday, June 30, 2022. Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. will lead the call. The conference call and earnings release can be accessed via the Investor Relations section of the Company's website at www.investors.acuitybrands.com. A replay of the call will also be posted to the Investor Relations site within two hours of the completion of the conference call and will be available on the site for a limited time. About Acuity Brands Acuity Brands, Inc. (NYSE:AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces and light. Through our two business segments, Acuity Brands Lighting and Lighting Controls ("ABL") and the Intelligent Spaces Group ("ISG"), we design, manufacture, and bring to market products and services that make a valuable difference in people's lives. We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management systems, and location-aware applications. Acuity Brands, Inc. achieves customer-focused efficiencies that allow the Company to increase market share and deliver superior returns. The Company looks to aggressively deploy capital to grow the business and to enter attractive new verticals. Acuity Brands, Inc. is based in Atlanta, Georgia, with operations across North America, Europe, and Asia. The Company is powered by approximately 13,500 dedicated and talented associates. Visit us at www.acuitybrands.com. Non-GAAP Financial Measures This news release includes the following non-generally accepted accounting principles ("GAAP") financial measures: "adjusted operating profit" and "adjusted operating profit margin" for total company and by segment; "adjusted net income;" "adjusted diluted EPS;" "earnings before interest, taxes, depreciation, and amortization ("EBITDA");" "adjusted EBITDA;" and "free cash flow ("FCF")". These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's current financial performance and prospects for the future. Specifically, management believes that these non-GAAP measures provide useful information to investors by excluding or adjusting items for amortization of acquired intangible assets, share-based payment expense, acquisition-related items, impairment on investment, and special charges associated with continued efforts to streamline the organization and integrate recent acquisitions. FCF is provided to enhance the reader's understanding of the Company's ability to generate additional cash from its business. Management typically adjusts for these items for internal reviews of performance and uses the above non-GAAP measures for baseline comparative operational analysis, decision making, and other activities. Management believes these non-GAAP measures provide greater comparability and enhanced visibility into the Company's results of operations as well as comparability with many of its peers, especially those companies focused more on technology and software. Non-GAAP financial measures included in this news release should be considered in addition to, and not as a substitute for or superior to, results prepared in accordance with GAAP. The most directly comparable GAAP measures for adjusted operating profit and adjusted operating profit margin for total company and by segment are "operating profit" and "operating profit margin," respectively, for total company and by segment, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquisition-related items, and special charges. Adjusted operating profit margin is adjusted operating profit divided by net sales for total company and by segment. The most directly comparable GAAP measures for adjusted net income and adjusted diluted EPS are "net income" and "diluted EPS," respectively, which include the impact of amortization of acquired intangible assets, share-based payment expense, acquisition-related items, an impairment of investment, and special charges. Adjusted diluted EPS is adjusted net income divided by diluted weighted average shares outstanding. The most directly comparable GAAP measure for FCF is "net cash provided by operating activities, which includes the impact of purchases of property, plant and equipment." The most directly comparable GAAP measure for EBITDA is "net income", which includes the impact of net interest expense, income taxes, depreciation, and amortization of acquired intangible assets. The most directly comparable GAAP measure for adjusted EBITDA is "net income", which includes the impact of net interest expense, income taxes, depreciation, amortization of acquired intangible assets, share-based payment expense, acquisition-related items, special charges, and miscellaneous (income) expense, net. A reconciliation of each measure to the most directly comparable GAAP measure is available in this news release. The Company's non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for GAAP financial measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items. Forward-Looking Information This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management's beliefs and assumptions and information currently available to management. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this press release and is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements are statements other than those of historical fact and may include statements relating to goals, plans, market conditions and projections regarding Acuity Brands' strategy, and specifically include statements made in this press release regarding: strong performance, significant and sustained improvements and generating permanent value. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "will," "expect," "intend," "estimate," "anticipate," "believe, "future," "should," "looks to," "leading to" or "continue" or the negative thereof or variations thereon or similar terminology. A number of important factors could cause actual events to differ materially from those contained in or implied by the forward-looking statements, including those factors discussed in our annual report on Form 10-K for the fiscal year ended August 31, 2021, filed on October 27, 2021 and those described from time to time in our other filings with the U.S. Securities and Exchange Commission (the "SEC"), which can be found at the SEC's website www.sec.gov. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information, whether written or oral, to reflect changes in assumptions, the occurrence of events, or otherwise. ACUITY BRANDS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In millions)     May 31, 2022   August 31, 2021   (unaudited)     ASSETS       Current assets:       Cash and cash equivalents $ 318.2     $ 491.3   Accounts receivable, less reserve for doubtful accounts of $0.8 and $1.2, respectively   597.2       571.8   Inventories   580.6       398.7   Prepayments and other current assets   112.6       82.5   Total current assets   1,608.6       1,544.3   Property, plant, and equipment, net   269.2       269.1   Operating lease right-of-use assets   63.4       58.0   Goodwill   1,090.9       1,094.7   Intangible assets, net   541.7       573.2   Deferred income taxes   1.8       1.9   Other long-term assets   39.9       33.9   Total assets $ 3,615.5     $ 3,575.1   LIABILITIES AND STOCKHOLDERS' EQUITY       Current liabilities:       Accounts payable $ 452.2     $ 391.5   Current maturities of debt   122.0       —   Current operating lease liabilities   16.2       15.9   Accrued compensation   80.7       95.3   Other accrued liabilities   195.8       189.5   Total current liabilities   866.9       692.2   Long-term debt   494.8       494.3   Long-term operating lease liabilities   52.9       46.7   Accrued pension liabilities   51.0       60.2   Deferred income taxes   100.3       101.0   Other long-term liabilities   131.0       136.2   Total liabilities   1,696.9       1,530.6   Stockholders' equity:       Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued   —       —   Common stock, $0.01 par value; 500,000,000 shares authorized; 54,210,049 and 54,018,978 issued, respectively   0.5       0.5   Paid-in capital   1,025.2       995.6   Retained earnings   3,065.2       2,810.3   Accumulated other comprehensive loss   (103.5 )     (98.2 ) Treasury stock, at cost, of 21,140,982 and 18,826,611 shares, respectively   (2,068.8 )     (1,663.7 ) Total stockholders' equity   1,918.6       2,044.5   Total liabilities and stockholders' equity $ 3,615.5     $ 3,575.1       ACUITY BRANDS, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(In millions, except per-share data)   Three Months Ended   Nine Months Ended   May 31, 2022   May 31, 2021   May 31, 2022   May 31, 2021 Net sales $ 1,060.6     $ 899.7   $ 2,895.8     $ 2,468.3 Cost of products sold   615.5       513.1     1,685.6       1,412.6 Gross profit   445.1       386.6     1,210.2       1,055.7 Selling, distribution, and administrative expenses   302.4       268.0     850.1       759.4 Special charges   —       0.5     —       1.5 Operating profit   142.7       118.1     360.1       294.8 Other expense:               Interest expense, net   6.2       6.2     18.1       17.7 Miscellaneous (income) expense, net   (1.5 )     2.7     (3.1 )     6.5 Total other expense   4.7       8.9     15.0       24.2 Income before income taxes   138.0       109.2     345.1       270.6 Income tax expense   32.3       23.5     76.5       62.4 Net income $ 105.7     $ 85.7   $ 268.6     $ 208.2                 Earnings per share:               Basic earnings per share $ 3.10     $ 2.40   $ 7.75     $ 5.70 Basic weighted average number of shares outstanding   34.1       35.7     34.7       36.5 Diluted earnings per share $ 3.07     $ 2.37   $ 7.66     $ 5.66 Diluted weighted average number of shares outstanding   34.4       36.2     35.1       36.8 Dividends declared per share $ 0.13     $ 0.13   $ 0.39     $ 0.39     ACUITY BRANDS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(In millions)   Nine Months Ended   May 31, 2022   May 31, 2021 Cash flows from operating activities:       Net income $ 268.6     $ 208.2   Adjustments to reconcile net income to net cash flows from operating activities:       Depreciation and amortization.....»»

Category: earningsSource: benzinga2 hr. 38 min. ago Related News

The Fed is about to whack the economy and will be forced to slash interest rates sharply in 2023, traders predict

Traders now expect the Federal Reserve to cut interest rates by 50 basis points in 2023 as economic growth slows sharply. Many analysts think the US is heading for a recession in 2023.Juanmonino/Getty Images Markets are flashing a warning: The Fed's quest to tame inflation will hit growth and force it to slash rates again. Traders shifted their expectations Wednesday, and now expect the Fed to cut interest rates by 50 basis points in 2023. The move comes after Fed Chair Jerome Powell said rate hikes are "highly likely to involve some pain." Financial markets are flashing a warning: The Federal Reserve's quest to tame inflation is going to whack economic growth within the year, and force the central bank to start slashing borrowing costs again in 2023.Fed Chair Jerome Powell warned on Wednesday that although the US economy is strong, "there's no guarantee" the central bank can raise interest rates sharply to tackle inflation without derailing growth."The process is highly likely to involve some pain," he said at a European Central Bank conference in Sintra, Portugal.Traders in the fed funds futures market were quick to respond. They expect the Fed to hike interest rates to a peak above 3.5% in March 2023 as it tries to bring down inflation, according to the prices of contracts listed by Bloomberg.But as of Thursday, traders expect the US central bank to have to start cutting interest rates in the middle of 2023 as growth slows, slashing them by around 50 basis points to roughly 3% by December of next year.Only a week earlier, the market expected the Fed's main interest rate to stand at around 3.2% by the end of 2023."The great and good at the ECB's Sintra conference have made it pretty clear they are more concerned about whacking inflation on the head than anything else, which isn't surprising, but does mean that downside growth risks will persist," said Kit Juckes, macro strategist at Societe Generale.The Fed's federal funds target range is currently 1.5% to 1.75%, after the central bank carried out the first 75 basis-point hike since 1994 earlier in June.In a Deutsche Bank survey of investors published Thursday, some 90% of respondents said they now expect a US recession before 2023 is done, up from just 35% six months ago."That echoes our own economists' view that we're going to get a recession in the second half of 2023, and just shows how sentiment has shifted since the start of the year as central banks have begun hiking rates," Deutsche Bank strategist Jim Reid said.One plus is that a recession is highly likely to cool red-hot inflation, which is running at a 41-year high of 8.6% in the US.Bond market investors now expect inflation to average 2.6% over the next five years, according to a measure known as the breakeven rate. That's down from 2.8% a week ago, and 3.6% in March.Not all analysts and traders expect a US recession, however. Many point to Americans' large build-up in savings during the pandemic, and say it should cushion the blow during any slowdown."Suggestions that a recession is imminent or inevitable are well wide of the mark," said Michael Pearce, senior US economist at Capital Economics.He said surveys of companies show the economy is still strong and that new business continues to flow. "Any recession, if it did occur in the next few years, would be mild," he said.Read more: Recession-proof investing: BlackRock equities chief reveals the 3 stock market sectors investors should target and a key theme the firm is focusing on as interest rates spikeRead the original article on Business Insider.....»»

Category: topSource: businessinsider2 hr. 38 min. ago Related News

Who"s Still Buying Fossil Fuels From Russia?

Who's Still Buying Fossil Fuels From Russia? Despite looming sanctions and import bans, Russia exported $97.7 billion worth of fossil fuels in the first 100 days since its invasion of Ukraine, at an average of $977 million per day. So, which fossil fuels are being exported by Russia, and who is importing these fuels? The infographic below, via Visual Capitalist's Niccolo Conte and Govind Bhutada, tracks the biggest importers of Russia’s fossil fuel exports during the first 100 days of the war based on data from the Centre for Research on Energy and Clean Air (CREA). In Demand: Russia’s Black Gold The global energy market has seen several cyclical shocks over the last few years. The gradual decline in upstream oil and gas investment followed by pandemic-induced production cuts led to a drop in supply, while people consumed more energy as economies reopened and winters got colder. Consequently, fossil fuel demand was rising even before Russia’s invasion of Ukraine, which exacerbated the market shock. Russia is the third-largest producer and second-largest exporter of crude oil. In the 100 days since the invasion, oil was by far Russia’s most valuable fossil fuel export, accounting for $48 billion or roughly half of the total export revenue.   While Russian crude oil is shipped on tankers, a network of pipelines transports Russian gas to Europe. In fact, Russia accounts for 41% of all natural gas imports to the EU, and some countries are almost exclusively dependent on Russian gas. Of the $25 billion exported in pipeline gas, 85% went to the EU. The Top Importers of Russian Fossil Fuels The EU bloc accounted for 61% of Russia’s fossil fuel export revenue during the 100-day period. Germany, Italy, and the Netherlands—members of both the EU and NATO—were among the largest importers, with only China surpassing them.   China overtook Germany as the largest importer, importing nearly 2 million barrels of discounted Russian oil per day in May—up 55% relative to a year ago. Similarly, Russia surpassed Saudi Arabia as China’s largest oil supplier. The biggest increase in imports came from India, buying 18% of all Russian oil exports during the 100-day period. A significant amount of the oil that goes to India is re-exported as refined products to the U.S. and Europe, which are trying to become independent of Russian imports. Reducing Reliance on Russia In response to the invasion of Ukraine, several countries have taken strict action against Russia through sanctions on exports, including fossil fuels.  The U.S. and Sweden have banned Russian fossil fuel imports entirely, with monthly import volumes down 100% and 99% in May relative to when the invasion began, respectively. On a global scale, monthly fossil fuel import volumes from Russia were down 15% in May, an indication of the negative political sentiment surrounding the country. It’s also worth noting that several European countries, including some of the largest importers over the 100-day period, have cut back on Russian fossil fuels. Besides the EU’s collective decision to reduce dependence on Russia, some countries have also refused the country’s ruble payment scheme, leading to a drop in imports. The import curtailment is likely to continue. The EU recently adopted a sixth sanction package against Russia, placing a complete ban on all Russian seaborne crude oil products. The ban, which covers 90% of the EU’s oil imports from Russia, will likely realize its full impact after a six-to-eight month period that permits the execution of existing contracts. While the EU is phasing out Russian oil, several European countries are heavily reliant on Russian gas. A full-fledged boycott on Russia’s fossil fuels would also hurt the European economy—therefore, the phase-out will likely be gradual, and subject to the changing geopolitical environment. Tyler Durden Thu, 06/30/2022 - 06:55.....»»

Category: blogSource: zerohedge3 hr. 26 min. ago Related News

Coronavirus tally: Daily hospitalizations and deaths keep climbing, as cases rise to top of recent range

While health regulators debated over how to proceed with developing new booster shots, COVID-19-related hospitalizations and deaths have quietly climbed to new multi-month highs as cases bump up against the top of a six-week range. The seven-day average of new cases rose 7% from two weeks ago to 112,464 on Wednesday, according to a New York Times tracker. The highest reading over the past six weeks was 112,797 on June 7. Big increases in the South, with Arkansas, Mississippi and Alabama seeing cases surge more than 50% in two weeks, offset declines in most Northeast states. The daily average for hospitalizations, which has been rising every day since April 18, rose 9% from two weeks ago to 32,706 on Wednesday, the most since March 9. The daily average for deaths jumped 18% from two weeks ago to 388, the most since April 19.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......»»

Category: topSource: marketwatch3 hr. 38 min. ago Related News

IEA: Europe Will Have To Cut Gas Usage By Nearly One-Third

IEA: Europe Will Have To Cut Gas Usage By Nearly One-Third Authored by Julianne Geiger via OilPrice.com, In the first quarter of next year, the countries of the European Union will have to cut their usage of natural gas by up to 30% in preparation for a complete stoppage of Russian gas flows, according to the International Energy Agency (IEA).  IEA Director Fatih Birol on Tuesday said that “a complete cut-off of Russian gas supplies to Europe could result in storage fill levels being well below average ahead of the winter, leaving the EU in a very vulnerable position.”  “In the current context, I wouldn’t exclude a complete cut-off of gas exports to Europe from Russia,” he stated.  Citing technical issues related to the Nord Stream pipeline, Russia earlier in June cut flows of gas to Germany by 60%.  Plans to boost natural gas storage filling in Europe would not withstand a full Russian cut-off if it were to happen between now and the fourth quarter of this year.  By the first of November, the European Union should have its gas storage filled to 90%; however, a complete Russian cut-off would reduce that significantly, leading to another surge in natural gas prices, which have already tripled year-on-year, according to Bloomberg, citing figures from the ICE Endex.  European natural gas prices remained steady from Monday to Tuesday, in part due to a resumption of the flow of Russian gas through the TurkStream pipeline, which was undergoing maintenance. The pipeline has a 31.5-billion-cubic-meter capacity, Bloomberg reports.  On Tuesday, Dutch front-month gas futures dropped 0.2% at the close.  Also steadying natural gas prices in Europe on Tuesday were new estimations for demand, which could see a drop due to sunnier weather that can better support solar energy.  [ZH: Wednesday saw European NatGas re-accelerate as fears grew after Sweden and Finland were formally invited into NATO. EU NatGas is now trading at a 100% premium to US NatGas (in oil barrel equivs)...] This is not enough to calm nerves in Germany. Last week, German officials warned that the country is under threat of having to ration gas usage, which would have a devastating effect on the economy. German Minister for Economic Affairs Robert Habeck said the country had entered the “second alert level” of its emergency gas plan. “Even if we don’t feel it yet, we are in the midst of a gas crisis. From now on, gas is a scarce asset,” Habeck said in a statement, Fortune reported.  Tyler Durden Thu, 06/30/2022 - 03:30.....»»

Category: blogSource: zerohedge4 hr. 10 min. ago Related News

Nexcom sees promising IPC industry growth

The industrial PC industry is poised to see impressive growth over the next three to five years, according to Clement Lin, chairman of Taiwan-based Nexcom International......»»

Category: topSource: digitimes6 hr. 25 min. ago Related News

The world"s best restaurant, which sells $700 lunches, posted a $240,000 loss amid Denmark"s Covid restrictions

Noma in Copenhagen reported a net loss of 1.69 million kroner ($240,000) for 2021. It was shut for about five months of that year. Noma — the world's top restaurant — closed for months in 2021 due to coronavirus restrictions in Denmark.Thibault Savary/AFP/Getty Imags Noma — the world's best restaurant — posted a $240,000 loss for 2021 when it was shut for months. The Copenhagen restaurant last reported a loss in 2017 when it was closed for a refresh. It's now serving menus focused on vegetables priced from $420 to $700 per person. Even the world's top restaurant recorded a loss in 2021 amid coronavirus lockdowns.Copenhagen's Noma — which ranked No. 1 on the World's 50 Best Restaurants list in 2021 — reported a net loss of 1.69 million Danish kroner ($240,000) in 2021, according to a company filing with the Danish Business Authority. That's after it collected 10.9 million kroner ($1.5 million) in government compensation for the impact of lockdowns.The last time Noma recorded a loss was in 2017, according to Bloomberg. It was shut for the whole of that year as co-owner and chef René Redzepi wanted to refresh the restaurant.The 3-star restaurant Michelin had to rethink the business again when it was forced to close on December 9, 2020, due to coronavirus restrictions in Denmark, according to the AFP. The restaurant reopened in June last year with a menu catering to local palates.Noma is now serving summer menus focused on vegetables. Prices start from 3,000 kroner ($420) per person, including tax. The most expensive lunch menu, complete with wine pairing, costs 5,000 kroner ($700) per person.Despite the high prices, many pre-paid reservation slots through October 21 are already sold out, according to its booking website."In the circumstances, the company's result and economic development have been satisfying," Noma wrote in its company filing. "The company expects an improved result for the year ahead."Noma was not the only restaurant hit by the pandemic, as food and beverage outlets across the world faced unprecedented challenges due to lockdowns and dine-in restrictions. In the US, about 159,000 food and drink establishments closed in 2020 alone, according to a Washington Post analysis published last week. That's almost double the average of 81,000 closures per year before the pandemic.Noma did not immediately respond to Insider's request for comment that was sent outside regular business hours.Read the original article on Business Insider.....»»

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Report: Fewer Gen Z homeowners in Jacksonville than national average

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Category: topSource: bizjournals8 hr. 26 min. ago Related News

Homebuying and Climate Change: The Riskiest and Safest Places in 2022

Home prices in areas most impacted by climate change are actually increasing at a higher rate than the national median, according to new research released this week by Clever Real Estate. The study shows that median home sale prices have increased more than 130% in major metros within states that have had at least 50… The post Homebuying and Climate Change: The Riskiest and Safest Places in 2022 appeared first on RISMedia. Home prices in areas most impacted by climate change are actually increasing at a higher rate than the national median, according to new research released this week by Clever Real Estate. The study shows that median home sale prices have increased more than 130% in major metros within states that have had at least 50 FEMA disaster declarations since 2012—compared to the national median of 113%.  Key findings in the research: Disasters causing over $1 billion in damage have grown increasingly common in the last four decades, costing the U.S. over $2 trillion since 1980. The states that climate change has most financially impacted since 1980 are Texas, Louisiana, Florida and California. Out of 145 billion-dollar disasters in the U.S. since 2012, Texas has been impacted by 73 of them. The U.S. counties with the highest hazard risk scores are Harris County (Houston) in Texas, Miami-Dade County in Florida and Bronx County in New York. Since 2012, California has had 146 FEMA-declared weather and environmental disasters, the most in the U.S. and 564% more than the average state, which has had 22 (includes all disasters, not just those costing over $1 billion). In that span, the average coastal state has experienced 27 FEMA weather disasters, while the average non-coastal state has experienced 18. In 2021, federal emergency officials declared at least one non-COVID disaster in 41 U.S. states. States with the highest overall Expected Annual Losses (EAL) from natural hazards are California, followed by Texas, Florida and Louisiana. States with the lowest overall EAL scores are Rhode Island, Vermont and Delaware, among other Northeastern states. California is the most at risk of wildfire damage, with the highest EAL score in that disaster category. New Jersey is the most at risk of coastal flooding damage, with the highest EAL score in that category. Texas is the most at risk of hurricanes, river flooding and winter storm damage, with the highest EAL scores in those categories. The takeaway: “Americans continue to live in—and move to—the areas most at risk of disasters,” the report stated. “Coastal counties, for example, make up 10% of the nation’s land, but hold 40% of the population. Our analysis shows many of the states most threatened by disasters are home to some of the most in-demand metro areas for homebuyers.” Click here to read the full report. The post Homebuying and Climate Change: The Riskiest and Safest Places in 2022 appeared first on RISMedia......»»

Category: realestateSource: rismedia8 hr. 37 min. ago Related News

These Cities Have the Largest Share of Million-Dollar Homes

Though home prices have risen significantly over the past two years, paying $1 million or more for a house may still seem excessive to most Americans. To find out where million-dollar houses are most common, LendingTree recently released analysis of its housing data that looked at the share of million-dollar homes in each of the… The post These Cities Have the Largest Share of Million-Dollar Homes appeared first on RISMedia. Though home prices have risen significantly over the past two years, paying $1 million or more for a house may still seem excessive to most Americans. To find out where million-dollar houses are most common, LendingTree recently released analysis of its housing data that looked at the share of million-dollar homes in each of the nation’s 50 largest metropolitan areas. Key findings from the data: Million-dollar homes are relatively uncommon in most of the country. An average of only 4.71% of the owner-occupied homes in the nation’s 50 largest metros are valued at $1 million or more. The prevalence of million-dollar homes can vary significantly by metro. For example, 52.89% of owner-occupied homes are valued at $1 million or more in San Jose, California, making it the only one of the nation’s 50 largest metros where a majority of owner-occupied homes are worth at least $1 million. Of the 10 metros with the largest share of million-dollar homes, the four with the highest percentage are in California. Buffalo, New York, Cleveland, Ohio, and Pittsburgh, Pennsylvania, have the smallest share of homes valued at $1 million or more. The takeaway: “As home prices continue to rise and million-dollar-plus homes become more common, it will become even more important to implement policies meant to help lower-income families find affordable housing,” said LendingTree’s Senior Economist and report author, Jacob Channel. “If left unchecked, rampant home price growth will continue to make owning a home an unreachable goal for millions of Americans.” To view the full report and city rankings, click here. The post These Cities Have the Largest Share of Million-Dollar Homes appeared first on RISMedia......»»

Category: realestateSource: rismedia8 hr. 37 min. ago Related News

Visualizing The Elemental Composition Of The Human Body

Visualizing The Elemental Composition Of The Human Body The human body is a miraculous, well-oiled, and exceptionally complex machine. It requires a multitude of functioning parts to come together for a person to live a healthy life—and every biological detail in our bodies, from the mundane to the most magical, is driven by just 21 chemical elements. Of the 118 elements on Earth, just 21 of them are found in the human body. As Visual Capitalist's Mark Belan and Anshool Deshmukh detail below, together, they make up the medley of divergent molecules that combine to form our DNA, cells, tissues, and organs. Based on data presented by the International Commission on Radiological Protection (ICRP), in the above infographic, we have broken down a human body to its elemental composition and the percentages in which they exist. These 21 elements can be categorized into three major blocks depending on the amount found in a human body, the main building block (4 elements), essential minerals (8 elements), and trace elements (9 elements). The Elemental Four: Ingredients for Life Four elements, namely, oxygen, carbon, hydrogen, and nitrogen, are considered the most essential elements found in our body. Oxygen is the most abundant element in the human body, accounting for approximately 61% of a person’s mass. Given that around 60-70% of the body is water, it is no surprise that oxygen and hydrogen are two of the body’s most abundantly found chemical elements. Along with carbon and nitrogen, these elements combine for 96% of the body’s mass. Here is a look at the composition of the four elements of life: Values are for an average human body weighing 70 kg. Let’s take a look at how each of these four chemical elements contributes to the thriving functionality of our body: Oxygen Oxygen plays a critical role in the body’s metabolism, respiration, and cellular oxygenation. Oxygen is also found in every significant organic molecule in the body, including proteins, carbohydrates, fats, and nucleic acids. It is a substantial component of everything from our cells and blood to our cerebral and spinal fluid. Carbon Carbon is the most crucial structural element and the reason we are known as carbon-based life forms. It is the basic building block required to form proteins, carbohydrates, and fats. Breaking carbon bonds in carbohydrates and proteins is our primary energy source. Hydrogen Hydrogen, the most abundantly found chemical element in the universe, is present in all bodily fluids, allowing the toxins and waste to be transported and eliminated. With the help of hydrogen, joints in our body remain lubricated and able to perform their functions. Hydrogen is also said to have anti-inflammatory and antioxidant properties, helping improve muscle function. Nitrogen An essential component of amino acids used to build peptides and proteins is nitrogen. It is also an integral component of the nucleic acids DNA and RNA, the chemical backbone of our genetic information and genealogy. Essential and Supplemental Minerals Essential minerals are important for your body to stay healthy. Your body uses minerals for several processes, including keeping your bones, muscles, heart, and brain working properly. Minerals also control beneficial enzyme and hormone production. Minerals like calcium are a significant component of our bones and are required for bone growth and development, along with muscle contractions. Phosphorus contributes to bone and tooth strength and is vital to metabolizing energy. Here is a look at the elemental composition of essential minerals: Values are for an average human body weighing 70 kg. Other macro-minerals like magnesium, potassium, iron, and sodium are essential for cell-to-cell communications, like electric transmissions that generate nerve impulses or heart rhythms, and are necessary for maintaining thyroid and bone health. Excessive deficiency of any of these minerals can cause various disorders in your body. Most humans receive these minerals as a part of their daily diet, including vegetables, meat, legumes, and fruits. In case of deficiencies, though, these minerals are also prescribed as supplements. Biological Composition of Trace Elements Trace elements or trace metals are small amounts of minerals found in living tissues. Some of them are known to be nutritionally essential, while others may be considered to be nonessential. They are usually in minimal quantities in our body and make up only 1% of our mass. Paramount among these are trace elements such as zinc, copper, manganese, and fluorine. Zinc works as a first responder against infections and thereby improves infection resistance, while balancing the immune response. Here is the distribution of trace elements in our body:   Values are for an average human body weighing 70 kg.   Even though only it’s found in trace quantities, copper is instrumental in forming red blood cells and keeping nerve cells healthy. It also helps form collagen, a crucial part of bones and connective tissue. Even with constant research and studies performed to thoroughly understand these trace elements’ uses and benefits, scientists and researchers are constantly making new discoveries. For example, recent research shows that some of these trace elements could be used to cure and fight chronic and debilitating diseases ranging from ischemia to cancer, cardiovascular disease, and hypertension. Tyler Durden Wed, 06/29/2022 - 23:20.....»»

Category: blogSource: zerohedge8 hr. 38 min. ago Related News