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Bank of America’s Merrill Lynch to ban trainee brokers from making cold calls

Bank of America Corp.'s Merrill Lynch Wealth Management unit is banning trainee brokers from making cold calls, a vestige of an era when the industry pushed hot stocks on anyone who would pick up the phone......»»

Category: topSource: foxnewsMay 24th, 2021

Futures Rise On Taper, Evergrande Optimism

Futures Rise On Taper, Evergrande Optimism US index futures jumped overnight even as the Fed confirmed that a November tapering was now guaranteed and would be completed by mid-2022 with one rate hike now on deck, while maintaining the possibility to extend stimulus if necessitated by the economy. Sentiment got an additional boost from a strong showing of Evergrande stock - which closed up 17% - during the Chinese session, which peaked just after Bloomberg reported that China told Evergrande to avoid a near-term dollar bond default and which suggested that the "government wants to avoid an imminent collapse of the developer" however that quickly reversed when the WSJ reported, just one hour later, that China was making preparations for Evergrande's demise, and although that hammered stocks, the report explicitly noted that a worst-case scenario for Evergrande would mean a partial or full nationalization as "local-level government agencies and state-owned enterprises have been instructed to step in only at the last minute should Evergrande fail to manage its affairs in an orderly fashion." In other words, both reports are bullish: either foreign creditors are made whole (no default) as per BBG or the situation deteriorates and Evergrande is nationalized ("SOEs step in") as per WSJ. According to Bloomberg, confidence is building that markets can ride out a pullback in Fed stimulus, unlike 2013 when the taper tantrum triggered large losses in bonds and equities. "Investors are betting that the economic and profit recovery will be strong enough to outweigh a reduction in asset purchases, while ultra-low rates will continue to support riskier assets even as concerns linger about contagion from China’s real-estate woes." That's one view: the other is that the Fed has so broken the market's discounting ability we won't know just how bad tapering will get until it actually begins. “The Fed has got to be pleased that their communication on the longer way to tapering has avoided the dreaded fear of the tantrum,” Jeffrey Rosenberg, senior portfolio manager for systematic fixed income at BlackRock Inc., said on Bloomberg Television. “This is a very good outcome for the Fed in terms of signaling their intent to give the market information well ahead of the tapering decision.” Then there is the question of Evergrande: “With regards to Evergrande, all those people who are waiting for a Lehman moment in China will probably have to wait another turn,” said Ken Peng, an investment strategist at Citi Private Bank Asia Pacific. “So I wouldn’t treat this as completely bad, but there are definitely a lot of risks on the horizon.” In any case, today's action is a continuation of the best day in two months for both the Dow and the S&P which staged a strong recovery from two-month lows hit earlier in the week, and as of 745am ET, S&P 500 E-minis were up 25.25 points, or 0.6%, Dow E-minis were up 202 points, or 0.59%, while Nasdaq 100 E-minis were up 92.0 points, or 0.60%. In the premarket, electric vehicle startup Lucid Group rose 3.1% in U.S. premarket trading. PAVmed (PVM US) jumps 11% after its Lucid Diagnostics unit announced plans to list on the Global Market of the Nasdaq Stock Market.  Here are some of the biggest movers today: U.S.-listed Chinese stocks rise in premarket trading as fears of contagion from China Evergrande Group’s debt crisis ease. Blackberry (BB US) shares rise 8.7% in premarket after co.’s 2Q adjusted revenue beat the average of analysts’ estimates Eargo (EAR US) falls 57% in Thursday premarket after the hearing aid company revealed it was the target of a Justice Department criminal probe and withdrew its forecasts for the year Amplitude Healthcare Acquisition (AMHC US) doubled in U.S. premarket trading after the SPAC’s shareholders approved the previously announced business combination with Jasper Therapeutics Steelcase (SCS US) fell 4.8% Wednesday postmarket after the office products company reported revenue for the second quarter that missed the average analyst estimate Vertex Energy Inc. (VTNR US) gained 2.1% premarket after saying the planned acquisition of a refinery in Mobile, Alabama from Royal DutVTNR US Equitych Shell Plc is on schedule Synlogic (SYBX US) shares declined 9.7% premarket after it launched a stock offering launched without disclosing a size HB Fuller (FUL US) climbed 2.7% in postmarket trading after third quarter sales beat even the highest analyst estimate Europe's Stoxx 600 index rose 0.9%, lifted by carmakers, tech stocks and utilities, which helped it recover losses sparked earlier in the week by concerns about Evergrande and China’s crackdown on its property sector. The gauge held its gain after surveys of purchasing managers showed business activity in the euro area lost momentum and slowed broadly in September after demand peaked over the summer and supply-chain bottlenecks hurt services and manufacturers. Euro Area Composite PMI (September, Flash): 56.1, consensus 58.5, last 59.0. Euro Area Manufacturing PMI (September, Flash): 58.7, consensus 60.3, last 61.4. Euro Area Services PMI (September, Flash): 56.3, consensus 58.5, last 59.0. Germany Composite PMI (September, Flash): 55.3, consensus 59.2, last 60.0. France Composite PMI (September, Flash): 55.1, consensus 55.7, last 55.9. UK Composite PMI (September, Flash): 54.1, consensus 54.6, last 54.8. Commenting on Europe's PMIs, Goldman said that the Euro area composite PMI declined by 2.9pt to 56.1 in September, well below consensus expectations. The softening was broad-based across countries but primarily led by Germany. The peripheral composite flash PMI also weakened significantly in September but remain very high by historical standards (-2.4pt to 57.5). Across sectors, the September composite decline was also broad-based, with manufacturing output softening (-3.3pt to 55.6) to a similar extent as services (-2.7pt to 56.3). Supply-side issues and upward cost and price pressures continued to be widely reported. Expectations of future output growth declined by less than spot output on the back of delta variant worries and supply issues, remaining far above historically average levels. Earlier in the session, Asian stocks rose for the first time in four sessions, as Hong Kong helped lead a rally on hopes that troubled property firm China Evergrande Group will make progress on debt repayment. The MSCI Asia Pacific Index climbed as much as 0.5%, with Tencent and Meituan providing the biggest boosts. The Hang Seng jumped as much as 2.5%, led by real estate stocks as Evergrande surged more than 30%. Hong Kong shares later pared their gains. Asian markets were also cheered by gains in U.S. stocks overnight even as the Federal Reserve said it may begin scaling back stimulus this year. A $17 billion net liquidity injection from the People’s Bank of China also provided a lift, while the Fed and Bank of Japan downplayed Evergrande risks in comments accompanying policy decisions Wednesday. Evergrande’s stock closed 18% higher in Hong Kong, in a delayed reaction to news a unit of the developer had negotiated interest payments on yuan notes. A coupon payment on its 2022 dollar bond is due on Thursday “Investors are perhaps reassessing the tail risk of a disorderly fallout from Evergrande’s credit issues,” said Chetan Seth, a strategist at Nomura. “However, I am not sure if the fundamental issue around its sustainable deleveraging has been addressed. I suspect markets will likely remain quite volatile until we have some definite direction from authorities on the eventual resolution of Evergrande’s debt problems.” Stocks rose in most markets, with Australia, Taiwan, Singapore and India also among the day’s big winners. South Korea’s benchmark was the lone decliner, while Japan was closed for a holiday In rates, Treasuries were off session lows, with the 10Y trading a 1.34%, but remained under pressure in early U.S. session led by intermediate sectors, where 5Y yield touched highest since July 2. Wednesday’s dramatic yield-curve flattening move unleashed by Fed communications continued, compressing 5s30s spread to 93.8bp, lowest since May 2020. UK 10-year yield climbed 3.4bp to session high 0.833% following BOE rate decision (7-2 vote to keep bond-buying target unchanged); bunds outperformed slightly. Peripheral spreads tighten with long-end Italy outperforming. In FX, the Bloomberg Dollar Spot Index reversed an earlier gain and dropped 0.3% as the dollar weakened against all of its Group-of-10 peers apart from the yen amid a more positive sentiment. CAD, NOK and SEK are the strongest performers in G-10, JPY the laggard.  The euro and the pound briefly pared gains after weaker-than-forecast German and British PMIs. The pound rebounded from an eight-month low amid a return of global risk appetite as investors assessed whether the Bank of England will follow the Federal Reserve’s hawkish tone later Thursday. The yield differential between 10-year German and Italian debt narrowed to its tightest since April. Norway’s krone advanced after Norges Bank raised its policy rate in line with expectations and signaled a faster pace of tightening over the coming years. The franc whipsawed as the Swiss National Bank kept its policy rate and deposit rate at record lows, as expected, and reiterated its pledge to wage currency market interventions. The yen fell as a unit of China Evergrande said it had reached an agreement with bond holders over an interest payment, reducing demand for haven assets. Turkey’s lira slumped toa record low against the dollar after the central bank unexpectedly cut interest rates. In commodities, crude futures drifted lower after a rangebound Asia session. WTI was 0.25% lower, trading near $72; Brent dips into the red, so far holding above $76. Spot gold adds $3.5, gentle reversing Asia’s losses to trade near $1,771/oz. Base metals are well bid with LME aluminum leading gains. Bitcoin steadied just below $44,000. Looking at the day ahead, we get the weekly initial jobless claims, the Chicago Fed’s national activity index for August, and the Kansas City fed’s manufacturing activity index for September. From central banks, there’ll be a monetary policy decision from the Bank of England, while the ECB will be publishing their Economic Bulletin and the ECB’s Elderson will also speak. From emerging markets, there’ll also be monetary policy decisions from the Central Bank of Turkey and the South African Reserve Bank. Finally in Germany, there’s an election debate with the lead candidates from the Bundestag parties. Market Snapshot S&P 500 futures up 0.7% to 4,413.75 STOXX Europe 600 up 1.1% to 468.32 MXAP up 0.5% to 200.57 MXAPJ up 0.9% to 645.76 Nikkei down 0.7% to 29,639.40 Topix down 1.0% to 2,043.55 Hang Seng Index up 1.2% to 24,510.98 Shanghai Composite up 0.4% to 3,642.22 Sensex up 1.4% to 59,728.37 Australia S&P/ASX 200 up 1.0% to 7,370.22 Kospi down 0.4% to 3,127.58 German 10Y yield fell 5.6 bps to -0.306% Euro up 0.4% to $1.1728 Brent Futures up 0.3% to $76.39/bbl Gold spot up 0.0% to $1,768.25 U.S. Dollar Index down 0.33% to 93.16 Top Overnight News from Bloomberg Financial regulators in Beijing issued a broad set of instructions to China Evergrande Group, telling the embattled developer to focus on completing unfinished properties and repaying individual investors while avoiding a near-term default on dollar bonds China’s central bank net-injected the most short- term liquidity in eight months into the financial system, with markets roiled by concerns over China Evergrande Group’s debt crisis Europe’s worst energy crisis in decades could drag deep into the cold months as Russia is unlikely to boost shipments until at least November Business activity in the euro area “markedly” lost momentum in September after demand peaked over the summer and supply chain bottlenecks hurt both services and manufacturers. Surveys of purchasing managers by IHS Markit showed growth in both sectors slowing more than expected, bringing overall activity to a five-month low. Input costs, meanwhile, surged to the highest in 21 years, according to the report The U.K. private sector had its weakest month since the height of the winter lockdown and inflation pressures escalated in September, adding to evidence that the recovery is running into significant headwinds, IHS Markit said The U.K.’s record- breaking debut green bond sale has given debt chief Robert Stheeman conviction on the benefits of an environmental borrowing program. The 10 billion-pound ($13.7 billion) deal this week was the biggest-ever ethical bond sale and the country is already planning another offering next month A more detailed look at global markets courtesy of Newsquaw Asian equity markets traded mostly positive as the region took its cue from the gains in US with the improved global sentiment spurred by some easing of Evergrande concerns and with stocks also unfazed by the marginally more hawkish than anticipated FOMC announcement (detailed above). ASX 200 (+1.0%) was underpinned by outperformance in the commodity-related sectors and strength in defensives, which have more than atoned for the losses in tech and financials, as well as helped markets overlook the record daily COVID-19 infections in Victoria state. Hang Seng (+0.7%) and Shanghai Comp. (+0.6%) were also positive after another respectable liquidity operation by the PBoC and with some relief in Evergrande shares which saw early gains of more than 30% after recent reports suggested a potential restructuring by China’s government and with the Co. Chairman noting that the top priority is to help wealth investors redeem their products, although the majority of the Evergrande gains were then pared and unit China Evergrande New Energy Vehicle fully retraced the initial double-digit advances. KOSPI (-0.5%) was the laggard as it played catch up to the recent losses on its first trading day of the week and amid concerns that COVID cases could surge following the holiday period, while Japanese markets were closed in observance of the Autumnal Equinox Day. China Pumps $17 Billion Into System Amid Evergrande Concerns China Stocks From Property to Tech Jump on Evergrande Respite Philippines Holds Key Rate to Spur Growth Amid Higher Prices Taiwan’s Trade Deal Application Sets Up Showdown With China Top Asian News European equities (Stoxx 600 +0.9%) trade on the front-foot and have extended gains since the cash open with the Stoxx 600 now higher on the week after Monday’s heavy losses. From a macro perspective, price action in Europe has been undeterred by a slowdown in Eurozone PMIs which saw the composite metric slip to 56.1 from 59.0 (exp. 58.5) with IHS Markit noting “an unwelcome combination of sharply slower economic growth and steeply rising prices.” Instead, stocks in the region have taken the cue from a firmer US and Asia-Pac handover with performance in Chinese markets aided by further liquidity injections by the PBoC. Some positivity has also been observed on the Evergrande front amid mounting expectations of a potential restructuring at the company. That said, at the time of writing, it remains unclear what the company’s intentions are for repaying its USD 83.5mln onshore coupon payment. Note, ING highlights that “missing that payment today would still leave a 30-day grace period before this is registered as a default”. The most recent reports via WSJ indicate that Chinese authorities are asking local governments to begin preparations for the potential downfall of Evergrande; however, the article highlights that this is a last resort and Beijing is reluctant to step in. Nonetheless, this article has taken the shine off the mornings risk appetite, though we do remain firmer on the session. Stateside, as the dust settles on yesterday’s FOMC announcement, futures are firmer with outperformance in the RTY (+0.8% vs. ES +0.7%). Sectors in Europe are higher across the board with outperformance in Tech and Autos with the latter aided by gains in Faurecia (+4.6%) who sit at the top of the Stoxx 600 after making an unsurprising cut to its guidance, which will at least provide some clarity on the Co.’s near-term future; in sympathy, Valeo (+6.6) is also a notable gainer in the region. To the downside, Entain (+2.6%) sit at the foot of the Stoxx 600 after recent strong gains with the latest newsflow surrounding the Co. noting that MGM Resorts is considering different methods to acquire control of the BetMGM online gambling business JV, following the DraftKings offer for Entain, according to sources. The agreement between Entain and MGM gives MGM the ability to block any deal with competing businesses; MGM officials believe this grants the leverage to take full control of BetMGM without spending much. Top European News BOE Confronts Rising Prices, Slower Growth: Decision Guide La Banque Postale Eyes Retail, Asset Management M&A in Europe Activist Bluebell Raises Pressure on Glaxo CEO Walmsley Norway Delivers Rate Lift-Off With Next Hike Set for December In FX, not much bang for the Buck even though the FOMC matched the most hawkish market expectations and Fed chair Powell arguably went further by concluding in the post-meeting press conference that substantial progress on the lagging labour front is all but done. Hence, assuming the economy remains on course, tapering could start as soon as November and be completed my the middle of 2022, though he continued to play down tightening prospects irrespective of the more hawkish trajectory implied by the latest SEP dot plots that are now skewed towards at least one hike next year and a cumulative seven over the forecast horizon. However, the Greenback only managed to grind out marginally higher highs overnight, with the index reaching 93.526 vs 93.517 at best yesterday before retreating quite sharply and quickly to 93.138 in advance of jobless claims and Markit’s flash PMIs. CAD/NZD/AUD - The Loonie is leading the comeback charge in major circles and only partially assisted by WTI keeping a firm bid mostly beyond Usd 72/brl, and Usd/Cad may remain contained within 1.2796-50 ahead of Canadian retail sales given decent option expiry interest nearby and protecting the downside (1 bn between 1.2650-65 and 2.7 bn from 1.2620-00). Meanwhile, the Kiwi has secured a firmer grip on the 0.7000 handle to test 0.7050 pre-NZ trade and the Aussie is looking much more comfortable beyond 0.7250 amidst signs of improvement in the flash PMIs, albeit with the services and composite headline indices still some way short of the 50.0 mark. NOK/GBP/EUR/CHF - All firmer, and the Norwegian Crown outperforming following confirmation of the start of rate normalisation by the Norges Bank that also underscored another 25 bp hike in December and further tightening via a loftier rate path. Eur/Nok encountered some support around 10.1000 for a while, but is now below, while the Pound has rebounded against the Dollar and Euro in the run up to the BoE at midday. Cable is back up around 1.3770 and Eur/Gbp circa 0.8580 as Eur/Usd hovers in the low 1.1700 area eyeing multiple and a couple of huge option expiries (at the 1.1700 strike in 4.1 bn, 1.1730 in 1 bn, 1.1745-55 totalling 2.7 bn and 1.8 bn from 1.1790-1.1800). Note, Eurozone and UK flash PMIs did not live up to their name, but hardly impacted. Elsewhere, the Franc is lagging either side of 0.9250 vs the Buck and 1.0835 against the Euro on the back of a dovish SNB Quarterly Review that retained a high Chf valuation and necessity to maintain NIRP, with only minor change in the ordering of the language surrounding intervention. JPY - The Yen is struggling to keep its head afloat of 110.00 vs the Greenback as Treasury yields rebound and risk sentiment remains bullish pre-Japanese CPI and in thinner trading conditions due to the Autumn Equinox holiday. In commodities, WTI and Brent have been choppy throughout the morning in-spite of the broadly constructive risk appetite. Benchmarks spent much of the morning in proximity to the unchanged mark but the most recent Evergrande developments, via WSJ, have dampened sentiment and sent WTI and Brent back into negative territory for the session and printing incremental fresh lows at the time of publication. Back to crude, newsflow has once again centred around energy ministry commentary with Iraq making clear that oil exports will continue to increase. Elsewhere, gas remains at the forefront of focus particularly in the UK/Europe but developments today have been somewhat incremental. On the subject, Citi writes that Asia and Europe Nat. Gas prices could reach USD 100/MMBtu of USD 580/BOE in the winter, under their tail-risk scenario. For metals, its very much a case of more of the same with base-metals supportive, albeit off-best given Evergrande, after a robust APAC session post-FOMC. Given the gas issues, desks highlight that some companies are being forced to suspend/reduce production of items such as steel in Asian/European markets, a narrative that could become pertinent for broader prices if the situation continues. Elsewhere, spot gold and silver are both modestly firmer but remain well within the range of yesterday’s session and are yet to recovery from the pressure seen in wake of the FOMC. US Event Calendar 8:30am: Sept. Initial Jobless Claims, est. 320,000, prior 332,000; Continuing Claims, est. 2.6m, prior 2.67m 8:30am: Aug. Chicago Fed Nat Activity Index, est. 0.50, prior 0.53 9:45am: Sept. Markit US Composite PMI, prior 55.4 9:45am: Sept. Markit US Services PMI, est. 54.9, prior 55.1 9:45am: Sept. Markit US Manufacturing PMI, est. 61.0, prior 61.1 11am: Sept. Kansas City Fed Manf. Activity, est. 25, prior 29 12pm: 2Q US Household Change in Net Wor, prior $5t DB's Jim Reid concludes the overnight wrap My wife was at a parents event at school last night so I had to read three lots of bedtime stories just as the Fed were announcing their policy decision. Peppa Pig, Biff and Kipper, and somebody called Wonder Kid were interspersed with Powell’s press conference live on my phone. It’s fair to say the kids weren’t that impressed by the dot plot and just wanted to join them up. The twins (just turned 4) got their first reading book homework this week and it was a bit sad that one of them was deemed ready to have one with words whereas the other one only pictures. The latter was very upset and cried that his brother had words and he didn’t. That should create even more competitive tension! Back to the dots and yesterday’s Fed meeting was on the hawkish side in terms of the dots and also in terms of Powell’s confidence that the taper could be complete by mid-2022. Powell said that the Fed could begin tapering bond purchases as soon as the November FOMC meeting, in line with our US economists’ forecasts. He left some room for uncertainty, saying they would taper only “If the economy continues to progress broadly in line with expectations, and also the overall situation is appropriate for this.” However he made clear that “the timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff.” The quarterly “dot plot” showed that the 18 FOMC officials were split on whether to start raising rates next year or not. In June, the median dot indicated no rate increases until 2023, but now 6 members see a 25bps raise next year and 3 members see two such hikes. Their inflation forecasts were also revised up and DB’s Matt Luzzetti writes in his FOMC review (link here) that “If inflation is at or below the Fed's current forecast next year of 2.3% core PCE, liftoff is likely to come in 2023, consistent with our view. However, if inflation proves to be higher with inflation expectations continuing to rise, the first rate increase could well migrate into 2022.” Markets took the overall meeting very much in its stride with the biggest impact probably being a yield curve flattening even if US 10yr Treasury yields traded in just over a 4bp range yesterday and finishing -2.2bps lower at 1.301%. The 5y30y curve flattened -6.7bps to 95.6bps, its flattest level since August 2020, while the 2y10y curve was -4.2bps flatter. So the market seems to believe the more hawkish the Fed gets the more likely they’ll control inflation and/or choke the recovery. The puzzle is that even if the dots are correct, real Fed funds should still be negative and very accommodative historically for all of the forecasting period. As such the market has a very dim view of the ability of the economy to withstand rate hikes or alternatively that the QE technicals are overpowering everything at the moment. In equities, the S&P 500 was up nearly +1.0% 15 minutes prior to the Fed, and then rallied a further 0.5% in the immediate aftermath before a late dip look it back to +0.95%. The late dip meant that the S&P still has not seen a 1% up day since July 23. The index’s rise was driven by cyclicals in particular with energy (+3.17%), semiconductors (-2.20%), and banks (+2.13%) leading the way. Asian markets are mostly trading higher this morning with the Hang Seng (+0.69%), Shanghai Comp (+0.58%), ASX (+1.03%) and India’s Nifty (+0.81%) all up. The Kospi (-0.36%) is trading lower though and is still catching up from the early week holidays. Japan’s markets are closed for a holiday today. Futures on the S&P 500 are up +0.25% while those on the Stoxx 50 are up +0.49%. There is no new news on the Evergrande debt crisis however markets participants are likely to pay attention to whether the group is able to make interest rate payment on its 5 year dollar note today after the group had said yesterday that it resolved a domestic bond coupon by negotiations which was also due today. As we highlighted in our CoTD flash poll conducted earlier this week, market participants are not too worried about a wider fallout from the Evergrande crisis and even the Hang Seng Properties index is up +3.93% this morning and is largely back at the levels before the big Monday sell-off of -6.69%. Overnight we have received flash PMIs for Australia which improved as parts of the country have eased the coronavirus restrictions. The services reading came in at 44.9 (vs. 42.9 last month) and the manufacturing print was even stronger at 57.3 (vs. 52.0 last month). Japan’s flash PMIs will be out tomorrow due to today’s holiday. Ahead of the Fed, markets had continued to rebound from their declines earlier in the week, with Europe’s STOXX 600 gaining +0.99% to narrowly put the index in positive territory for the week. This continues the theme of a relative outperformance among European equities compared to the US, with the STOXX 600 having outpaced the S&P 500 for 5 consecutive sessions now, though obviously by a slim margin yesterday. Sovereign bonds in Europe also posted gains, with yields on 10yr bunds (-0.7bps), OATs (-1.0bps) and BTPs (-3.2bps) all moving lower. Furthermore, there was another tightening in peripheral spreads, with the gap in Italian 10yr yields over bunds falling to 98.8bps yesterday, less than half a basis point away from its tightest level since early April. Moving to fiscal and with Democrats seemingly unable to pass the $3.5 trillion Biden budget plan by Monday, when the House is set to vote on the bipartisan infrastructure bill, Republican leadership is calling on their members to vote against the bipartisan bill in hopes of delaying the process further. While the there is still a high likelihood the measure will eventually get passed, time is becoming a factor. Congress now has just over a week to get a government funding bill through both chambers of congress as well as raise the debt ceiling by next month. Republicans have told Democrats to do the latter in a partisan manner and include it in the reconciliation process which could mean that a significant portion of the Biden economic agenda – mostly encapsulated in the $3.5 trillion over 10 year budget – may have to be cut down to get the entire Democratic caucus on board. Looking ahead, an event to watch out for today will be the Bank of England’s policy decision at 12:00 London time, where our economists write (link here) that they expect no change in the policy settings. However, they do expect a reaffirmation of the BoE’s updated forward guidance that some tightening will be needed over the next few years to keep inflation in check, even if it’s too early to expect a further hawkish pivot at this stage. Staying on the UK, two further energy suppliers (Avro Energy and Green Supplier) ceased trading yesterday amidst the surge in gas prices, with the two supplying 2.9% of domestic customers between them. We have actually seen a modest fall in European natural gas prices over the last couple of days, with the benchmark future down -4.81% since its close on Monday, although it’s worth noting that still leaves them up +75.90% since the start of August alone. There wasn’t much data to speak of yesterday, though US existing home sales fell to an annualised rate of 5.88 in August (vs. 5.89m expected). Separately, the European Commission’s advance consumer confidence reading for the Euro Area unexpectedly rose to -4.0 in September (vs. -5.9 expected). To the day ahead now, the data highlights include the September flash PMIs from around the world, while in the US there’s the weekly initial jobless claims, the Chicago Fed’s national activity index for August, and the Kansas City fed’s manufacturing activity index for September. From central banks, there’ll be a monetary policy decision from the Bank of England, while the ECB will be publishing their Economic Bulletin and the ECB’s Elderson will also speak. From emerging markets, there’ll also be monetary policy decisions from the Central Bank of Turkey and the South African Reserve Bank. Finally in Germany, there’s an election debate with the lead candidates from the Bundestag parties. Tyler Durden Thu, 09/23/2021 - 08:13.....»»

Category: blogSource: zerohedge2 hr. 40 min. ago

What to know about staking - the process of locking up crypto holdings to earn rewards and interest

In the cryptocurrency world, coin staking is the process of locking up coins to support a blockchain network. Here's what to know. Insider Staking is the process of delegating or locking up crypto holdings to earn rewards. Some of the rewards you can earn from staking are earning additional tokens and getting some voting rights. Staking is also risky since crypto is volatile, you may need to pay fees, and won't have access to your holdings should you need to access. Visit Insider's Investing Reference library for more stories. While many crypto investors mine in order to gain more assets, there is another option available to some investors: Crypto staking. Crypto staking involves "locking up" a portion of your cryptocurrency for a period of time as a way of contributing to a blockchain network. In exchange, stakers can earn rewards, typically in the form of additional coins or tokens. What is crypto staking? Crypto staking is similar to depositing money in a bank, in that an investor locks up their assets, and in exchange, earns rewards, or "interest.""Staking is a term used to refer to the delegating of a certain number of tokens to the governance model of the blockchain and thus locking them out of circulation for a specified length of time," says Nicole DeCicco, the owner and founder of CryptoConsultz, a cryptocurrency consultancy in the Portland, Oregon area. A particular network's protocol locks up an investor's holdings - similar to depositing money in a bank, and agreeing not to withdraw it for a set time period, which benefits the network in a couple of ways, according to DeCicco.First, this can increase the value of a token by limiting the supply. Second, the tokens can be used to govern the blockchain if the network uses a proof-of-stake (PoS) system. A PoS system - as opposed to a proof-of-work (PoW) one, which incorporates "mining" - can be fairly complicated, especially for crypto newcomers.In PoS systems, coins are staked to forge new blocks in the blockchain, for which participants are rewarded. "Winners are selected through randomization, ensuring no single entity will gain a monopoly over forging," says DeCicco.The process is simplified for crypto exchange users, says Jeremy Welch, chief product officer at Kraken, one such crypto exchange. On Kraken, Welch says staking is as easy as "going to the staking page [on the user's interface], specifying the amount you want to stake, and hitting submit."Welch also says that setting up a staking system on your own can be quite difficult. "You need to maintain and run a node yourself. And you need to know the crypto's infrastructure," he adds, which may require background knowledge many investors won't have.Depending on how much of their total holdings are being staked, and the length that they're being staked for, a staker can earn a proportional reward by forging. Stakers can also pool their holdings to meet any required minimums, too, into a "staking pool." It's also possible to "cold stake" on some networks, which involves staking coins or tokens that are held in a "cold" wallet, or one that is kept offline. Quick tip: The potential rewards you can reap from staking are directly influenced by how much you're willing to put at, well, stake. Keep that in mind when deciding what percentage of your holdings that you stake or delegate to a staking pool.Coins you can stakeWhile not every cryptocurrency can be staked, most can. For instance, DeCicco says that seven of the ten most popular current coins can be staked. Here are some examples:Ethereum: Previously employed a PoW system, Ethereum is now moving to PoS. To stake Ethereum on your own, you'll need a minimum of 32 ETH to become a validator, and you'll then "be responsible for storing data, processing transactions, and adding new blocks to the blockchain," according to the Ethereum site.Cardano: Investors can also delegate Ada - the Cardano network's cryptocurrency - to staking pools to earn rewards. Cardano users can even set up their own staking pools, too, assuming they have the technical know-how to create and administer one. Solana: Solana, or SOL, can likewise be staked or delegated to a staking pool, assuming an investor uses a digital wallet that supports it. From there, it's a matter of selecting a validator and deciding how much you'd like to stake. Staking rewards There are many benefits and rewards to staking. Here are some of the most prominent:Earn additional tokens. This is the big one - increasing your individual stash of tokens or coins. Stakers aren't guaranteed anything, as the process of forging new blocks and doling out rewards is randomized, but stakers do "earn interest," so to speak, by staking. Staking is less resource-intensive. As opposed to crypto mining, staking consumes far fewer resources, which may help you sleep at night. Plus, staking is "servicing the ecosystem by making tokens more rare," says DeCicco, which can increase the value of your holdings.Stakers get voting rights and participation. As mentioned, stakers are more entrenched in a specific ecosystem or blockchain network, which may give them more clout as to what happens next with a specific cryptocurrency. "It's similar to owning stock in a company. By staking, you're getting voting rights," says Welch. Staking can be an easy way to grow holdings. For investors using an exchange, staking can be as easy as toggling a few switches to set things up. From there, they can watch their holdings grow. It's a hands-off, easy way to keep investing, while putting in very little effort.Risks of staking As with any type of investment, staking has its risks. While it's unlikely that you'll see your entire account go kaputz overnight, as may happen with certain stocks, there are some things to be aware of before you start staking: Crypto is volatile. First and foremost, cryptocurrency is a volatile investment, and as such, price swings are common. The volatile nature of crypto and corresponding price swings can have you rethinking your strategy on a daily basis - so, volatility is something to keep in mind. Lock-up periods. Staking involves locking up your funds for a period of time, and if you lock up your holdings for months (or years), you won't have access to them for some time. Also important: There may not be a way to "unstake" your holdings once you start.Beware of "slashing." If you're staking outside of an exchange, by setting up and configuring your own node, you may make a mistake and incur penalties. This is called "slashing," and is used against "validators that are performing poorly or dishonestly," says Welch. The result? "A portion of the funds can be taken as a penalty," he adds.Fees. Yes, there are fees associated with staking, particularly if you do so through an exchange. The fees vary by exchange, but Welch says they're typically a percentage of a staker's rewards.Quick tip: Be sure you know what you're doing if you plan to stake cryptocurrency outside of an exchange. It's a process that requires some in-depth technical background and knowledge, and if done incorrectly, may end up costing you.The financial takeawayStaking can be a good way for crypto investors to put their holdings to work, earning them interest and rewards. Plus, it can get you involved in the governance and validation side of blockchain networks, which may be something of interest to certain investors. It may be useful to think of staking as owning a stock and earning dividends, or even putting money in a bank account and earning interest. It can be a relatively low-lift way to grow your account, but be sure to do your homework, and know the risks of staking before starting.What is Bitcoin? A beginner's guide to the world's most popular type of cryptocurrency, and tips for investing in itDigital assets are becoming the new normal - here's how to buy cryptocurrencyWhat to know about non-fungible tokens (NFTs) - unique digital assets built on blockchain technologyAltcoins are the alternative digital currencies to bitcoin - here's what they are and how they workRead the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 21st, 2021

Financial Advice To A Recent College Graduate

Whitney Tilson’s email in which he provides financial advice to a recent college graduate. Q2 2021 hedge fund letters, conferences and more When I was in Yosemite National Park in early August, my friend slipped and mashed his knee, so I took him to the clinic for an X-ray (nothing was broken, fortunately) and a […] Whitney Tilson’s email in which he provides financial advice to a recent college graduate. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more When I was in Yosemite National Park in early August, my friend slipped and mashed his knee, so I took him to the clinic for an X-ray (nothing was broken, fortunately) and a few stitches. While I was sitting in the waiting room for an hour, I struck up a conversation with a young man whose friend was also getting stitches. I learned that he had just graduated from the University of Nevada, Reno, with a degree in engineering and was looking for a job. When he learned that I was in the investing business, he asked me for advice. Here's what I told him... First, get a job – a real job at a real company where you can put your engineering training to work. Don't even think of trying to start your own business, doing gig work like driving for Uber (NYSE:UBER), or working as a barista at Starbucks (NASDAQ:SBUX). Then, I summarized the main points from this section of my book, The Art of Playing Defense, and e-mailed him a PDF of the entire book... Loss of Wealth I'll acknowledge that the calamity of losing your wealth is a high-class problem (it can only happen to people who have money!). If you're fortunate enough to have a comfortable income and healthy savings, it might be nice to think about making even more, but it's far more important to make sure you don't lose what you already have. Ironically, the surest, fastest way to get poor quickly is to try to get rich quickly. I've known people who spent their whole lives building up their savings only to lose it all in some crazy, half-baked scheme. Common examples include investing everything in their own new business – or someone else's – and it fails; speculating in penny stocks; day trading stocks or, worse yet, options; or getting duped by some online or phone fraudster. Millions of people are ensnared in these traps every year. Another way to become poor, albeit somewhat more slowly, is to lose a good job and not be able to replace it. Or get divorced – boom, there goes half your wealth, plus expenses usually rise (two homes, less favorable tax treatment, etc.). But the most common way to get into financial trouble is to spend more than you earn (after taxes). What this means is that every year, you need to borrow money to fill the gap – and there are lenders galore who will sell you – at a steep price – all the rope you need to hang yourself: credit-card companies, installment lenders, auto dealers, and so forth. To be clear, certain types of debt are fine. It often makes sense to take out a subsidized student loan for a high-quality education or to buy a reasonably valued house with a fixed-rate, low-interest, tax-deductible mortgage. But otherwise, it's usually best to avoid debt. Our economy and, in particular, our financial system is, in many ways, incredibly predatory. It makes it so easy to spend, luring people into living above their means. It is imperative that you resist this siren song. No matter what your income, figure out a way to live within it. Develop Good Financial Habits If you want to build wealth and live comfortably someday, you need to develop good financial habits. A 1996 book called The Millionaire Next Door shaped my thinking on this topic. The authors refuted many misconceptions about financial success, chiefly the idea that to become wealthy, you have to inherit money or have a high-paying job like a Wall Street banker, celebrity, or professional athlete. Instead, the authors discovered that the most common job among millionaires was running a small private business. The second most common was a professional like a doctor or teacher. But, in a fascinating finding, it turned out that income level was only moderately predictive of whether someone would become a millionaire. More important was whether someone lived beneath their means, year in and year out. In their survey of millionaires, the factor that most closely correlated to whether someone was a millionaire was whether they answered "yes" to the question: "Is your spouse more frugal than you are?" Doctors, on average, earn quite a bit more than teachers. Yet, relative to their income, they are less likely to become millionaires because they tend to spend all – or more than all – of their high incomes on big houses in upscale neighborhoods, new cars, country club memberships, fancy vacations, private schools, and so forth. Meanwhile, teachers are far more likely to become millionaires than their incomes would predict because they tend to live frugally. My parents, both teachers, are perfect examples. They can squeeze a dollar until it screams. Growing up, we almost never went out to eat – going to Friendly's once a month was such a treat! My mom clipped dozens of coupons from the circular in the Sunday paper, and when she came home from the supermarket, would crow about how much she'd saved. And she bought most of our clothes at second-hand stores. She still tells my sister and me that our costly educations were funded by her thriftiness. We never had a new car. My dad is a good mechanic, so we always bought 10-year-old cars that he would nurse along for years. I remember in the 1980s when we lived in western Massachusetts, we had a beaten-up 1960s vintage Mercedes. Its heater had stopped working long ago, which was a big problem during the bitterly cold winters. But no matter – we all bundled up in our down jackets and used de-icer spray on the inside of the windows. Similarly, Warren Buffett, despite being one of the wealthiest men in the world, is still very frugal. He could afford to live in a massive estate, but instead has lived in the same house for 61 years! When he first started flying in a private jet, he felt so embarrassed that he nicknamed it "The Indefensible." Save and Invest Once you've developed good financial habits and are saving money every year, you need to invest your savings wisely. The good news is that it's not hard. First, max out your retirement plan(s) like an IRA or 401(k) – especially if your employer will match at least some portion of it (this is free money – take it!). Tax-deferred savings are much more valuable than taxable ones because you won't have to pay taxes on your realized gains each year. The difference over time is enormous. Also, because there's a penalty for taking the money out before you're 65 years old, you're less likely to do something stupid with it. Ideally, set up automatic withholding from your paycheck into your IRA (or another retirement fund) – this makes it easier to save because you never see the money. Then, set up a plan such that the moment the money hits your account, it's automatically invested in an S&P 500 Index fund. (If you want to set aside some money to invest on your own, that's fine – sign up for my newsletters at Empire Financial Research to help you do so – but index most of it.) Finally – this is key – don't look at it! Just let it build, year after year, decade after decade. Whatever you do, don't panic during times of market turmoil and sell – just about everybody who does this has terrible timing, selling at exactly the wrong time (for example, in March 2009 or 2020). Consider the extreme case of my sister, who had a retirement account at her old employer, then switched jobs – and forgot about it! Years later, she remembered it – and discovered hundreds of thousands of dollars (!) because she'd done everything right up front: her employer automatically withdrew the maximum retirement contribution from her paycheck and then invested all of it in an S&P 500 Index fund. When my parents moved to Africa 24 years ago, first to Ethiopia and then, nine years later, to Kenya, where they've since retired, I took charge of their financial affairs. Though neither of them had ever had a big salary, they had both worked for their entire careers, earned decent incomes, and lived super frugally. As a result, they had built up a nest egg of around $800,000. But they were much too conservative in how they'd invested it. Though they were still in their mid-fifties and would likely work another 15 years and live into their nineties, their savings were mostly in cash and bonds – an allocation more appropriate for eighty-year-olds. So I put a third of their savings into my hedge fund and another third into an index fund, such that two-thirds of their savings were in stocks. It was the right call. Two decades later, they're in their late-seventies, and their net worth is multiples of what it once was. They're comfortably retired – though you wouldn't know it from how frugal they still are. When they came back to the U.S. for a couple of months last summer, as they do every year, my mom refused to get a SIM card for her Kenya cell phone that would allow her to make and receive calls, get her e-mail, etc., because it cost too much: one dollar per day! Best regards, Whitney P.S. I welcome your feedback at WTDfeedback@empirefinancialresearch.com. Updated on Sep 21, 2021, 10:30 am (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkSep 21st, 2021

Why the Fate of Troubled Property Developer Evergrande Group Is Posing a Huge Headache for China

One analyst calls it “the biggest test that China's financial system has faced in years” When Chinese home-buyer Zhiwei decided to purchase a luxury apartment at a development named Australia Villas back in 1997, it was billed as the apex of affluence. Located outside China’s southern megacity Guangzhou, the sprawling complex was to have 292 buildings, including a gymnasium, spa, cinemas, and a private school. Boutiques and restaurants would dot its 2,000 acres, sales staff said. Impressed, Zhiwei stumped up $21,000—a huge sum 24 years ago, when the average annual disposable income in China was less than $650. But things quickly went awry. The developer went bust in 2001 leaving most homes unfinished. Buyers with means swallowed the loss, but those without anywhere else to go, like Zhiwei, to go were forced to move into the concrete shells of their unfinished homes, living without gas, electricity and, in some cases, even windows. [time-brightcove not-tgx=”true”] “The whole area is thick with weeds, you can sometimes see snakes slithering on the sidewalk, and outdoors we are savaged by swarms of mosquitoes,” says Zhiwei, who asked to use a pseudonym for fear of jeopardizing ongoing negotiations with the developer and local government. “As the houses are unfinished, we can’t even get [approval] to sell them.” Read more: Why ‘Common Prosperity’ Is Alarming China’s Billionaires Two decades on, many people still live amid the vine-entangled, mildewed structures, planting vegetable gardens and rearing chickens on what were supposed to be ornamental lawns. More than 2,000 homeowners like Zhiwei are still waiting compensation. “After fighting for our rights for more than 20 years, many owners are getting old, and even the youngest have been retired for several years,” she says. And yet this cautionary tale has had no impact China’s gangbusters real estate market, which today remains the world’s biggest. In the year ending June 2020, about $1.4 trillion was invested in Chinese housing, even allowing for a fleeting dip due to the pandemic. That dwarfs the $900 billion invested in real estate at the peak of the U.S. property boom of the 2000s. Today, real estate makes up 29% China’s GDP. But alarm bells rang this week, with the news that the world’s most indebted real estate developer, Evergrande, is struggling to make loan payments on its more than $300 billion in liabilities—a sum roughly equivalent to the public debt of Portugal. On Tuesday the firm, based in the southern city of Shenzhen, said it was under “tremendous pressure” and warned there was no guarantee that it would be able “to meet its financial obligations.” That was crushing news for the roughly 1.5 million people who have put deposits on Evergrande homes that have yet to be built. NOEL CELIS/AFP via Getty Images Police officers survey people gathering at the Evergrande headquarters in Shenzhen, China on Sept. 16, 2021, as the Chinese property giant said it was facing “unprecedented difficulties” but denied rumors that it was about to go under. What impact could Evergrande have on China’s financial system? Fearing a fate like Zhiwei’s, scores of furious protesters besieged Evergrande’s headquarters this week in a show of public discontent not usually tolerated under China’s strongman, President Xi Jinping. Some even shared photos online of the family graves of Evergrande founder Hui Ka Yan, located at his ancestral home in the central province of Henan, exhorting people to go and vandalize them. Analysts are concerned. “Evergrande’s collapse would be the biggest test that China’s financial system has faced in years,” Mark Williams, chief Asia economist at Capital Economics, wrote in a Sept. 9 briefing note. Not only would a collapse be catastrophic for investor confidence, it would also reflect poorly on the ruling Chinese Communist Party (CCP). Under President Xi Jinping, the CCP has sought to rein in excessive wealth, reduce market risks and lower income inequality through a new campaign for “common prosperity.” But Evergrande—one of China’s largest corporations—is a problem that has worsened under Xi’s watch. The burning question is whether he will allow Evergrande to fail, potentially unleashing ripples of financial turmoil and further protests. At the very least, “Financial issues at the group are likely to cause contagion effect in the banking sector,” Angus Lam, a senior economist at IHS Markit, tells TIME by email. Read more: What the Crackdown on China’s Big Tech Firms Is Really About Yue Yuejin, research director for the E-House China research institute, says that unless there is social unrest “simply bailing out the enterprise wholesale will not happen.” But “there may be possible interventions such as the introduction of strategic investors or active coordination of asset sales.” It’s precipitous fall for Evergrande, which until recently was China’s second largest developer with nearly 900 competed commercial, residential and infrastructure projects. It had grown extremely bloated, swelling to some 200,000 staff as it made a bizarre array of loss-making forays into bottled water, electric vehicles and other sectors. It also invested hundreds of millions of dollars in its own soccer team. Hui, who founded the firm in 1997, was listed as China’s third-richest man by Forbes last year, but his wealth has plummeted in recent months. Evergrande’s shares have nosedived 81% since the beginning of the year, with the current crisis prompted after a series of downgrades of its bonds. Investors are growing increasingly jittery that a collapse could spread to other property developers, revealing systemic vulnerabilities. Each year, China builds about 15 million new homes—over five times those in America and Europe combined—yet a quarter of the current stock already lies empty, with forests of unoccupied tower blocks ringing many second and third-tier cities. In 2021, Chinese developers were exposed to more than $100 billion in bond repayments, while 10% of outstanding bank loans to non-financial clients globally have been made in China’s property sector. According to court filings, 228 real estate firms went bust in China during the first half of 2020 alone. Liu Junfeng/VCG via Getty Images)YICHANG, CHINA – SEPTEMBER 14: The construction site of an Evergrande housing complex is pictured on September 14, 2021 in Yichang, Hubei Province, China. Is Evergrande’s collapse inevitable? The crisis does not stand to be anything like as bad as America’s 2008 sub-prime mortgage crisis. A key feature of China’s property market is that many buyers pay the full price upfront rather than relying on mortgages. Of course, buyers may now be much less likely to trust real estate firms with such large sums, but defaults shouldn’t lead to the snowballing effect that the U.S. experienced. There are also some positives when it comes to China’s housing market. Whereas affluent Chinese once wanted to invest overseas, they now see China as a safer bet than foreign nations still in the grip of the coronavirus. Demand for new homes in good locations is so high prospective buyers must enter lotteries for the right to purchase one, with odds at some sought-after developments as low as 1 in 60. Social attitudes also place a strong emphasis on home ownership, with 81% of Chinese believing that buying a home is a must before marriage. Read more: How China’s Digital Currency Could Challenge the Dollar But the next few days will be critical. Evergrande has quarterly debt interest payments due Monday and bond interest payments Thursday as well as various suppliers waiting. Instead of cash, a $34 million debt to a paint supplier is reportedly being repaid by apartments in housing complexes that won’t be finished until 2024. Such wheeling and dealing is hardly sustainable. Evergrande “always had a reputation for creative financing,” says Dinny McMahon, an analyst on China’s real estate market for the Trivium China analysis group. Many ordinary Chinese are now wondering if they will pay the price. Around 78% of the wealth of urban Chinese is in residential property, versus just 35% for Americans, who prefer to invest in financial instruments and pensions. Were Chinese home prices to drop significantly in the wake of the Evergrande affair, it would shrink the primary assets of the world’s largest middle class, sending shudders around the globe. Says McMahon: “Hedge funds a decade ago were telling me it’s only a matter of time before Evergrande topples over.”.....»»

Category: topSource: timeSep 21st, 2021

Evergrande Could Trigger A Broader Sell-Off

Evergrande Property Services Group Ltd (HKG:6666), now the world’s most indebted property developer, seems to be causing Hong Kong’s financial markets to plunge again today as investors weigh up whether the group’s enormous debt problems could trigger a broader sell-off across other financial markets. Q2 2021 hedge fund letters, conferences and more Evergrande S Causing […] Evergrande Property Services Group Ltd (HKG:6666), now the world’s most indebted property developer, seems to be causing Hong Kong’s financial markets to plunge again today as investors weigh up whether the group’s enormous debt problems could trigger a broader sell-off across other financial markets. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more Evergrande S Causing Concern About The Chinese Market Rob Brewis, Fund Manager of the Aubrey Capital Management Global Emerging Markets Opportunities Fund, said, “We rarely write on specific stocks: for allocators running large portfolios, often across different asset classes, it is just too granular. And when on occasion we do, it is even more rare to report on a stock that we do not even own. We are making an exception with Evergrande for a couple of reasons. First, because this company is causing concern about the Chinese market as a whole over and above the impact its demise will have on its share and bond holders. Secondly, because our process screens out companies with such egregious business models. For those of you who have not heard of Evergrande it is a property company that has just announced the sales of its apartments is no longer sufficient to service its massive debts. We suspect this has been the case for some time (brokers we know have ceased coverage of the stock for some time – not a good sign for the second largest company in the sector) and that past deposits paid by unwitting customers (it is estimated that there are around 1.5m of them and close to 800 unfinished projects) have gone long ago to keep the show on the road. Their fate has been widely debated on an online forum set up by the People’s Daily over the past couple of months. Beijing has been well aware of Evergrande’s rising debt ratios for several years and has been trying to cajole the developer into de-gearing. Unfortunately, for want of the means, the founder of the business, Xu Jiayin, has continued down the “I am too big to fail” route. This has finally come home to roost. The Company’s debt is huge – some put it at $300bn – and will take a decade or more to unravel. We will, no doubt, be bored talking about it in a few months. The government’s priority is to manage the process without creating too much of a stir. The last thing the new “Common Prosperity” initiative needs is the distraction of large numbers of people who have put down deposits on unfinished projects or have invested in some bank wealth management products with exposure to the group being left penniless. Much of the debt will be with government banks who will, no doubt, manage the bad debts down over many years. It will be a massive headache, but not in any way a systemic risk. We would have seen that in broader bond markets, or indeed the currency, but there has been nothing. For many, the financials of this beast have been in plain sight for years. Sadly, as so often, the rating agencies have been slow to react. The equity is clearly worthless, and the bonds not worth very much. In fact, anyone who has invested in the equity (15x leveraged, with negative cash flow in 8 of the past 10 years) needs their heads examined. We suspect it is/was in all sorts of indices so ETF buyers have indeed been invested in it. As you know we focus on the EM consumer and the Chinese consumer is in rude good health. Though we are growth investors we are also mightily keen on cash flow generation. This necessarily attracts us to companies that have the wherewithal to fund their own growth without resort to lashings of debt. Note that none of our China holdings, excluding a couple of financials, have net borrowing. Fraud is very often difficult to spot and despite confidence in our process we are never complacent about corporate chicanery. This one however, was a sore thumb with bells on it. Will it have any impact on our profitable, well managed and growing businesses with strong balance sheets? No.” Updated on Sep 20, 2021, 3:32 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkSep 21st, 2021

Stocks Jump 1% This Week as Earnings and Data Outperform

Stocks Jump 1% This Week as Earnings and Data Outperform It was a week full of strong reports to kick off earnings season, as well as encouraging economic data to kick off an economic boom. As a result, each of the major indices gained 1% or more over the five days with two of them sustaining a record-setting pace and the third on the doorstep of its own milestone. The Dow kept pushing past 34K on Friday with a gain of 0.48% (or about 164 points) to 34,200.67. The S&P rose 0.36% to 4185.47. Both of these indices hit new record closes (just as they did yesterday) and rose by 1.2% and 1.4%, respectively, for the week. After moving 1% or more in each of the previous three sessions, the NASDAQ only advanced 0.10% (or around 13 points) to 14,052.34. But its now only 0.3% from its own closing high set all the way back in mid-February. The index rose 1% this week. Strong bank earnings continued today with Morgan Stanley (MS) and PNC Financial (PNC) beating by 29% and 49%, respectively. The past three days have laid the foundation for a strong season with solid performances from JPMorgan (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Bank of America (BAC) and Citigroup (C) as well… even if the market didn’t always reward the positive results. These banks have been releasing billions of dollars in loan loss reserves that were put aside during the pandemic. “In effect, these banks are saying, through these reserve releases, that they expect economic conditions in the coming quarters to be stronger relative to what they had originally modeled. This creates a favorable read-through for all sectors, particularly the economically-sensitive ones,” said Zacks’ Director of Research Sheraz Mian in his new article titled: Big Banks Foreshadow the Improving 2021 Earnings Picture. Meanwhile, the University of Michigan’s consumer sentiment index rose to 86.5 in the first half of April, which is a one-year high. This data comes a day after reports of retail sales soaring 9.8% in March and jobless claims of only 576K for last week. Both of those results easily surpassed expectations and provide further optimism that we’re moving past the pandemic. Earnings season picks up steam next week with more than 250 companies reporting, including the first FAANG as Netflix (NFLX) takes centerstage on Tuesday. Today's Portfolio Highlights: Surprise Trader: With earnings season underway and this portfolio getting a whole lot busier, Dave wants to shed the older names to make room for new additions. Therefore, he took a “victory lap” on Friday by selling homebuilder Lennar (LEN) for a more than 20% return in a little over a month. The new buy is Tractor Supply (TSCO), the largest farm and ranch chain in the country. This Zacks Rank #2 (Buy) has beaten the Zacks Consensus Estimate for four straight quarters now, and the editor expects more of the same when it goes to the plate again before the bell on Thursday, April 22. It has a positive Earnings ESP of 4.5%. Dave added TSCO today with a 12.5% allocation. Make sure to see the complete commentary for more on today’s action. Options Trader: This portfolio has repositioned into new options a couple times this week, so let’s do it one more time before the weekend! As you know, Kevin likes to pull profits on options that have doubled the premium and then add a new one with more time at the original dollar amount. He calls it a “free trade”. And that’s what he did on Friday with Nasdaq (NDAQ). The editor sold to close the June 145.00 Call for a 117% return and then bought to open a September 165.00 Call. Therefore, the principal is protected and the position can continue making money. See the full write-up for more. Blockchain Innovators: You were promised an addition for Friday... and here it is! The portfolio added Sohu.com (SOHU), an online advertising, media and gaming services company. A unit of SOHU has set up a blockchain research institute called Fox Fintech, which uses the technology to reduce credit costs in the financial sector and promote the growth of peer-to-peer lending. Rising earnings estimates have made the company a Zacks Rank #2 (Buy). Meanwhile, Dave also sold the underperforming Digi International (DGII) position after it slipped to a Zacks Rank #4 (Sell). Read the full write-up for more on today’s moves. In other news, this portfolio had a top performer on Friday as iClick Interactive Asia Group (ICLK) rose 7.5%. Healthcare Innovators: Last Friday, Kevin re-bought vaccine maker Novavax (NVAX) after pulling a more than 40% profit out of this name in March. He said that a lot of the company’s positives weren't being reflected in its share price, which was opening up an opportunity. Well, on this Friday NVAX was the top performer among all ZU names with a gain of 12.5%. In fact, all of the portfolio’s vaccine names did well this week, giving Moderna (MRNA) a spot in the top 5 as well with an advance of 6.8%. A vaccine shortage in a few countries around the globe will keep demand for these treatments very high as we put the pandemic in the rear-view mirror. One more thing, NVAX is also the top performer over the past 30 days in Kevin’s other portfolio, TAZR Trader. It’s up 26.5% in that time. Have a Great Weekend! Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

S&P Joins NASDAQ at New Highs After Infrastructure Agreement

S&P Joins NASDAQ at New Highs After Infrastructure Agreement A possible infrastructure deal got the major indices moving higher again on Thursday, helping the S&P to finally reach a new record. Meanwhile, stocks seem poised for solid weekly totals heading into Friday’s session. Let’s not get too excited about this infrastructure thing just yet. We know how Washington can be. Basically, the White House and a bipartisan group of senators have agreed on something. We still don’t know all the details or how it will be funded. We don’t even know if the plan will pass. However, it’s progress… and that was good enough for the market today. The NASDAQ just finished its third straight day in record territory, jumping 0.69% (or about 98 points) to a new high of 14,369.71. And the S&P is back to making history as well. The index rose 0.58% to 4266.49, which marks its first closing record high since Monday, June 14. The Dow jumped 0.95% (or around 322 points) to 34,196.82. All of these indices are up more than 2% for the week heading into Friday’s session, which means it has a good chance to recover from last week’s losses stemming from the Fed announcement. The jobless claims report was very similar to last time. The print showed 411,000 claims, which was only modestly better than the previous week’s upwardly-revised 418K. However, it missed expectations of around 380K. Other bits of economic data on Thursday included durable goods, which jumped 2.3% in May for a nice rebound from April’s plunge. However, it also missed expectations. But preliminary GDP was unrevised and right on target at 6.4%. “This all backs the idea that the economy isn’t too hot yet and the Fed can wait to taper and raise rates. This Goldilocks environment pleases the bulls,” said Jeremy Mullin in Counterstrike. And we’re not done with the data this week. Tomorrow comes the  personal consumptions expenditures report, which soared by more than 3% last time. However, the market took the print in stride as they feared much worse. The report is expected to show another sharp increase on Friday, so it’ll be interesting to see how investors react this time. Today's Portfolio Highlights:   Blockchain Innovators: It probably wouldn’t take many guesses to figure out what Benefitfocus (BNFT) does. It's a technology platform that simplifies benefits administration for employers, health plans and brokers. The company recently announced major expansions to its platform through artificial intelligence. So BNFT has been using blockchain for a while and looks to employ even more of it in the future. This Zacks Rank #2 (Buy) beat the Zacks Consensus Estimate in each of the last three quarters, and is expected to grow earnings more than 34% this year and over 46% next year. Dave added BNFT on Thursday, while also selling Net 1 UEPS Tech (UEPS) after several months of negative action. The complete commentary has more on today’s moves. Commodity Innovators: The portfolio swapped a couple energy positions on Thursday. First of all, Jeremy sold Devon Energy (DVN) after its Zacks Rank fell. Shares have bounced back a bit from a selloff, so this was a good time to sell the name for a 33.4% profit in less than three months. The new addition is Schlumberger (SLB), a Zacks Rank #1 (Strong Buy) oil services leader. The company beat the Zacks Consensus Estimate by 10% back in April and is benefiting from the rising price of oil. In fact, if oil gets up to $100, the editor thinks that SLB will make new highs rather quickly. Read the complete commentary for more. Options Trader: For the third time this year, Kevin is pulling profits and repositioning his options in Nasdaq (NDAQ). The editor sold to close the September 165.00 Call for a 137% return and bought to open a September 180.00 Call. As subscribers know, the editor calls this a “free trade” since the original principal is now safe with still tons of potential for profit moving forward. But that’s not all. Kevin also bought to open a December 540.00 Call in Thermo Fisher Scientific (TMO) and bought to open an October 105.00 Call in Floor & Décor Holdings (FND). TMO looks like it may finally be ready to breakout of a large bullish flagging pattern, while FND is a Zacks Rank #1 (Strong Buy) with projected sales and EPS growth of more than 34% and 54%, respectively. Read the full write-up for more specifics on these moves. TAZR Trader: Don’t count C3.ai (AI) out! This software company was a high-flying IPO last year... and then it “crashed and burned like Icarus”. However, CEO Thomas Siebel knows how to build an innovative tech company and has designs to make this name a global leader in enterprise artificial intelligence software for accelerating the digital transformation. It’s fiscal fourth quarter results from earlier this month shows it’s on the right track. Revenue rose 26% year over year, while subscription revenue advanced 17%. AI is also very attractively priced for a company with sales growth expectations of 33.5% this fiscal year and another 32.5% for next. The partnership with data cloud company Snowflake is a nice move for the future as well. Read the full write-up to learn a lot more about AI, including Siebel’s ambitions moving forward and the “recalibration’ of analysts. In other news, this portfolio had two of the best performers among all ZU names on Thursday as The Trade Desk (TTD) rose 16% and Magnite (MGNI) advanced 8.2%. Technology Innovators: Shares of NVIDIA (NVDA) have been on a solid run... and Brian doesn’t think it’s over. The portfolio needs some big-cap exposure, so he added this Zacks Rank #2 (Buy) graphics chip pioneer on Thursday. However, the editor sees NVDA as a broad-based computing powerhouse that goes far beyond chips. The company has beaten the Zacks Consensus Estimate in each of the last four quarters with an average surprise of 12%, while the topline is expected to grow 48% this year and 10% in fiscal 2023. There’s a 4 for 1 stock split coming up in about a month. Meanwhile, the service also sold Cornerstone OnDemand (CSOD) for a more than 16% return in a little over six months and Vishay Intertechnology (VSH) for a loss. Read the full write-up for more on today’s action. In addition, this portfolio had a top performer today as Criteo S.A. (CRTO) advanced 12.3%. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

5 Ways to Rebrand Your Real Estate Business

With so many professionals involved in the business of helping consumers buy and sell homes, the competition is fierce. Having a strong brand identity will help you stand out from the crowd and connect with prospects. Here are five ways you can keep your brand top-of-mind, no matter how steep the competition gets. The post 5 Ways to Rebrand Your Real Estate Business appeared first on RISMedia. For agents and brokers who have been in the real estate business for some time now, you’ve likely noticed several changes in the space. From adopting new technology to targeting a whole new generation of homebuyers, it’s important to adapt and make necessary changes with the times. Rebranding is a great way to put your real estate business back into the spotlight and showcase who you are, what you stand for, what services you provide and your ability to adjust to the ever-changing landscape of this industry. But to ensure a successful rebrand, you need to have a clear understanding of the importance of real estate branding and how to properly craft your brand identity. Why Is Real Estate Branding So Important? No matter what town, city or market you’re in, real estate agents and brokers are everywhere. With so many professionals involved in the business of helping consumers buy and sell homes, the competition for gaining and maintaining leads and clients is fierce. Having a strong brand identity will help you stand out from the crowd and connect with prospects looking for a trusted, experienced and authentic agent and brand. Here are five ways you can keep your brand top-of-mind and ensure future business success, no matter how steep the competition gets. 1. Define Who You Are and What You Stand For Every brand should have a mission statement, especially in real estate. A mission statement allows you to put your brand and beliefs into words, giving leads and prospects a chance to see how you can help them in their buying or selling journey. Write down what you stand for, why you chose to get into real estate and what sets you apart from other agents and brands. Remember, every agent, broker and real estate brand around you is your competitor. A strong mission statement and a clear understanding of your strengths, services and niche will help you not only determine your value, but highlight it to the people that matter most to your business. 2. Refresh Your Brand Colors and Logo Redesigning your logo and updating your brand color scheme is an especially important step for agents and brokers who have been in business for more than a decade. There is a new generation of buyers and sellers in the market; and it’s important to stand out on social media, so it may be time to refresh your graphics and overall design. This can include renaming your business, updating to a more modern logo, transforming your business’ aesthetic and changing up your company’s color scheme. Websites like Pinterest can help spark some trendy and modern ideas. Other platforms, like Canva, can help take your new branding to the next level with marketing materials, both print and digital. 3. Modernize Your Website and Blog Though many agents and brands have websites where prospects can read a bio and see current listings, a dated website may not reflect your modern business. Since having a strong online presence is more important than ever, having a website that is not only accessible, but also readable and visually appealing, is vital. If you have already updated your website, a blog may be a great addition. Real estate blogs are a great way to show your expertise while offering additional resources and information to your audience. Just be sure to keep it updated with fresh information and follow SEO best practices to ensure readability and returning eyes. 4. Embrace Your Niche or Specialties Like all real estate professionals, your goal is to help your clients buy or sell. But it takes more than just the basics to stand out in your market. It’s important to highlight your unique selling proposition, or your market niche, to separate you from the competition. Ask yourself what you do better or differently from the other agents and brokers in your area. Maybe you specialize in first-time homebuyers or relocation services. Or, maybe you are in the niche of vacation homes and luxury properties. No matter where your focus lies, it is important to embrace and promote these aspects of your brand so that you will be identified for your specialty and become the go-to source for specific real estate needs. 5. Hype Up Your Rebrand on Social Media From the planning stages through to completion, you want to make sure that social media is at the forefront of your rebranding strategy. This is especially important for agents who have a larger following. As you start the process of your rebrand, you can post teasers on your social media platforms letting your audience know that you will be making some changes, both big and small. You don’t want to come out of left field with a brand-new logo, color scheme or website, as this can create confusion with your existing audience. Create a bank of new social graphics that you can utilize on all platforms, and even consider filming a video of yourself explaining the rebrand for an added visual element. Be sure that your branding, message, links and handles are consistent across all of your platforms so that people can easily search and find you. If you decide to move forward with a real estate blog, be sure to share that content across your social accounts to ensure maximum exposure. In order to set yourself apart from the competition to improve and grow your real estate business, a rebrand may be the answer. If you haven’t updated your branding in a long time (or ever), if your logo and brand colors are outdated, or if you are simply looking for a way to stand out, refreshing your design, message and overall branding is a great start. Be sure to stay true to yourself and what you stand for while adapting to this ever-changing industry—and in no time, you will be on top! Paige Brown is RISMedia’s content editor. Email her your real estate news ideas to pbrown@rismedia.com. The post 5 Ways to Rebrand Your Real Estate Business appeared first on RISMedia......»»

Category: realestateSource: rismediaSep 21st, 2021

Here are the highest-priced homes sold in Tampa Bay in 2020

By mid-June, local real estate brokers were fielding more calls for luxury home sales from buyers in the Northeast looking to flee both the coronavirus pandemic and cold winters......»»

Category: topSource: bizjournalsJan 18th, 2021

Australia CBA insurance arm pleads guilty to cold-calling offences

The life insurance arm of Commonwealth Bank of Australia pleaded guilty to 87 counts of breaching a law banning sales staff from making unsolicited calls to sell financial products, the country's corporate regulator said on Tuesday......»»

Category: topSource: reutersNov 19th, 2019

CBA insurance arm pleads guilty to cold-calling offences: Australia watchdog

The life insurance arm of Commonwealth Bank of Australia pleaded guilty to 87 counts of breaching a law banning sales staff from making unsolicited calls to sell financial products, the country's corporate regulator said on Tuesday......»»

Category: topSource: reutersNov 18th, 2019

Bullard calls for insurance rate cuts but says Fed to evaluate policy meeting by meeting

St. Louis Fed President James Bullard, one of the most dovish members at the Fed, made the case for further rate cuts to protect against downside risks but said the central bank will be cautious in making more rate cuts. "Th.....»»

Category: topSource: marketwatchOct 15th, 2019

The best deals for getting your flu shot this season

Pharmacies at retailers like Publix and CVS will offer you coupons and gift cards for getting a flu shot this year. An advertisement offering free flu shots in New York City on August 21, 2020. John Nacion/SOPA Images/LightRocket/Getty Images Retailers are offering incentives for customers to get vaccinated against the flu. Some of the best deals include coupons for up to $20 off purchases at select stores. This year, health experts are worried patients with the flu could overwhelm hospitals already full of COVID-19 patients. See more stories on Insider's business page. Retailers are making it easier than ever to battle cold and flu season this fall by offering incentives to get vaccinated.Last year, because of the precautions many Americans took related to the ongoing coronavirus pandemic, the flu season reached "historical lows," according to the Centers for Disease Control and Prevention (CDC), as only 155 people were hospitalized during its peak.This year, health experts are worried patients sick with the flu could once again overwhelm hospitals as doctors and nurses are still helping patients fight severe cases of COVID-19. The CDC also says it is safe to receive the flu and COVID-19 vaccines at the same time.The best way to fight the flu is by getting the flu vaccine at the start of the flu season which goes from mid-fall to late spring, according to the CDC. Luckily, flu shots are free with insurance, and some pharmacies and clinics even offer free flu shots without insurance. This year, some retailers are also offering gift cards and coupons to customers who get their flu shots at their pharmacy locations.Here are some of the best flu shot deals:AlbertsonsAlbertsons pharmacies are offering 10% off grocery purchases up to $200 with any immunization.CVSCVS Pharmacy is encouraging customers to get vaccinated there by December 31 by offering a $5 shopping pass on any purchase of $20 or more when you shop in stores.Fresco y Más Fresco y Más is offering a deal where customers can get $20 off their groceries if they get two immunizations. Fresco y Más pharmacies are offering $10 coupons if customers get their flu shot in store, and another $10 if they get another immunization the same day. HarveysLike Fresco y Más, Harveys is offering $10 coupons if customers get their flu shot in store and another $10 if they get another immunization the same day. Rite AidCustomers who get the flu at a Rite Aid pharmacy will receive $5 off any purchase of $25 or more, through September. 30.TargetTarget pharmacies, which are operated by CVS, are also offering customers a $5 off $20 or more coupon when they get their flu shot.WalgreensWalgreens is offering $5 in Walgreens Cash to receive a flu shot there. With each flu shot, Walgreens will also donate $0.23 to a United Nations vaccine fund. Winn-DixieCustomers can get up to $20 off their groceries if they get vaccinated at Winn-Dixie. Winn-Dixie pharmacies are offering $10 coupons if customers get their flu shot in store and another $10 if they get another immunization the same day. Read the original article on Business Insider.....»»

Category: worldSource: nyt1 hr. 8 min. ago

ETFs to Bet On as Fed Turns Hawkish, Signals Tapering

The Federal Reserve Chair Jerome Powell kept the interest rates near zero at 0-0.25% but signaled bond-buying tapering ahead followed by interest rate hikes as early as next year. In the FOMC meeting that concluded on Sep 22, the Federal Reserve Chair Jerome Powell kept the interest rates near zero at 0-0.25% but signaled bond-buying tapering ahead followed by interest rate hikes as early as next year.The central bank is expected to begin scaling back the monthly bond purchases as soon as November and complete the process by mid-2022. This is because it expects the Delta variant of the coronavirus, which has dented economic activity in the recent months, to have a short-lived effect on the recovery. Per the officials, the economy will likely make “substantial further progress” by the end of the year, a threshold needed for the central bank to begin slowing the pace of asset purchases (read: Buy the Dip With These Top-Ranked ETFs).Fed Chair Jerome Powell reiterated that he believes the U.S. economy has already surpassed the central bank's goals for inflation, and said a "reasonably good" September jobs report would indicate that the Fed's employment goals to begin tapering had been satisfied as well. Notably, the central bank has been buying $120 billion per month of Treasuries and mortgage-backed securities since the start of the COVID-19 crisis.The policy statement also revealed that nine of 18 Fed policymakers foresee a liftoff in interest rates next year, compared to seven policymakers in June. The median dot also projects three to four total rate hikes by the end of 2023. Through the end of 2024, the median FOMC member sees six to seven total rate hikes.Given this, investors should continue to focus on areas/sectors that will benefit the most from the Fed’s tightening policy. Here, we have detailed four of these and their ETFs below:FinancialsA rising interest rate scenario is highly profitable for the financial sector. This is because the steepening yield curve would bolster profits for banks, insurance companies, and discount brokerage firms. A broad way to play this trend is with Financial Select Sector SPDR Fund XLF, which has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.This is the most popular financial ETF in the space with AUM of $40 billion and an average daily volume of about 43 million shares. The fund follows the Financial Select Sector Index, holding 65 stocks in its basket. It is heavily concentrated on the top two firms, making up for double-digits share each while other firms hold no more than 7.2% share. In terms of industrial exposure, banks take the top spot at 37.5% while capital markets, insurance, and diversified financial services make up for double-digit exposure each. The fund charges 12 bps in annual fees and is up 27.5% in the year-to-date timeframe (read: 401(k) Balances at All-Time Highs: 6 ETFs to Buy).Consumer DiscretionaryConsumer discretionary stocks also seem good bets. This is because a tight policy is seemingly the result of a pickup in economic growth supported by solid job growth, wage growth and increased lending activity that result in higher spending power. One exciting pick in this space can be Vanguard Consumer Discretionary ETF VCR, which has a Zacks ETF Rank #1 with a Medium risk outlook (read: ETF Areas to Gain From the Upcoming Holiday Shopping Season).This fund follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 296 stocks in its basket. It has heavy concentration on the top firm – Amazon AMZN – at 23.5% share while the other firms hold no more than 10% of the assets. The product has managed $6.7 billion in its asset base and charges 10 bps in annual fees. In terms of industrial exposure, Internet & direct marketing, retail takes the largest share at 27.6% while automobile manufacturers, restaurants, and home improvement retail round of the next three spots. The ETF trades in average daily volume of 59,000 shares and has gained 15.8% in the same timeframe.TechnologyIn a tight policy era, technology seems one of the safest sectors as most of the companies are sitting on a huge cash pile. The cash reserves will ensure that these companies are not plagued by any financial trouble even in a rising interest rate environment. While there are several ETFs to bet on, First Trust NASDAQ-100-Technology Sector Index Fund QTEC could be an intriguing option. It has a Zacks ETF Rank #1 with a High risk outlook.    This ETF tracks the NASDAQ-100 Technology Sector Index, holding 41 stocks in its basket with almost equal allocation. From an industry look, software and semiconductors dominate the list with 34.9% and 32.7% share, respectively, while production technology equipment and consumer digital services make up for the next two spots. QTEC is a large cap centric fund with AUM of $3.9 billion and average daily volume of around 66,000 shares. It charges 57 bps in annual fees and gained 19.6% so far this year.DollarTightening policy and higher rates would attract more capital to the country from foreign investors, thereby boosting the U.S. dollar against the basket of other currencies. Invesco DB US Dollar Index Bullish Fund UUP offers exposure to a dollar against a basket of six world currencies. This is done by tracking the Deutsche Bank Long USD Currency Portfolio Index - Excess Return plus the interest income from the fund’s holdings of U.S. Treasury securities. In terms of holdings, UUP allocates nearly 57.6% in euro and 25.5% collectively in the Japanese yen and British pound. The fund has so far managed an asset base of $487.9 million and sees an average daily volume of around 697,000 shares. It charges 76 bps in annual fees and has gained 3.5% so far this year. The fund has a Zacks ETF Rank #2 with a Medium risk outlook (read: U.S. Dollar to Gain Ahead? ETFs to Gain/Lose).  More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Amazon.com, Inc. (AMZN): Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports First Trust NASDAQ100Technology Sector ETF (QTEC): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 23 min. ago

Veritex Holdings (VBTX) Is a Great Choice for "Trend" Investors, Here"s Why

Veritex Holdings (VBTX) could be a great choice for investors looking to make a profit from fundamentally strong stocks that are currently on the move. It is one of the several stocks that made it through our "Recent Price Strength" screen. While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.Investors looking to make a profit from stocks that are currently on the move may find our "Recent Price Strength" screen pretty useful. This predefined screen comes handy in spotting stocks that are on an uptrend backed by strength in their fundamentals, and trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.Veritex Holdings (VBTX) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. VBTX is quite a good fit in this regard, gaining 2.8% over this period.However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 2.8% over the past four weeks ensures that the trend is still in place for the stock of this bank holding company.Moreover, VBTX is currently trading at 93% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.So, the price trend in VBTX may not reverse anytime soon.In addition to VBTX, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.Click here to sign up for a free trial to the Research Wizard today. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Veritex Holdings, Inc. (VBTX): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks2 hr. 39 min. ago

Banks Oppose Biden"s New "Total Financial Surveillance" Proposal On IRS Reporting

Banks Oppose Biden's New 'Total Financial Surveillance' Proposal On IRS Reporting Authored by Emel Akan via The Epoch Times, Opposition is growing to a new proposal aimed at curbing tax evasion that would be part of the $3.5 trillion reconciliation package under consideration by Congress. The proposal, which is being pushed by the Biden administration, would require banks and other financial institutions to report to the Internal Revenue Service (IRS) any deposits or withdrawals totaling more than $600 annually to or from all business and personal accounts. The American Bankers Association (ABA), along with over 40 business and financial groups, sent a letter on Sept. 17 to House Speaker Nancy Pelosi (D-Calif.) and House Minority Leader Kevin McCarthy (R-Calif.) objecting to the “ill-advised” reporting proposal. “While the stated goal of this vast data collection is to uncover tax dodging by the wealthy, this proposal is not remotely targeted to that purpose or that population,” the letter stated. “In addition to the significant privacy concerns, it would create tremendous liability for all affected parties by requiring the collection of financial information for nearly every American without proper explanation of how the IRS will store, protect, and use this enormous trove of personal financial information.” The Biden administration has been pushing Democrats to include the proposal in the $3.5 trillion spending bill in an effort to address tax evasion, mainly by wealthy people. With the new reporting rule, “the wealthy can no longer hide what they’re making,” President Joe Biden said on Sept. 16 during a speech on the economy. “That isn’t about raising their taxes,” Biden added. “It’s about the super-wealthy finally beginning to pay what they owe.” The reporting regime aims to close the tax gap, according to the Treasury Department, which is the difference between taxes owed to the government and what’s actually paid. A report released by the Treasury in May stated that the new reporting rule would help “raise $460 billion over the next decade.” Almost every banking transaction and even transfers between one’s accounts would be aggregated and reported to the IRS, according to Paul Merski, group executive vice president at the Independent Community Bankers of America (ICBA), which represents nearly 5,000 community banks in the United States. “It’s a dragnet, it’s a collection of data in the scale that we’ve never seen before in the financial sector,” Merski told The Epoch Times. ICBA is among the financial groups that strongly oppose Biden’s proposal, calling it an “overreach” by the federal government. Banks already report a tremendous amount of data to the IRS. According to a U.S. Government Accountability Office report, more than 3.5 billion information returns were received by the IRS for tax year 2018. A large number of these come from banks, ABA says. These include reporting interest paid on bank accounts, dividend income, brokerage transactions, mortgage interest, and more. Under the Bank Secrecy Act, U.S. financial institutions also report to the government all wire transfers over $10,000 as well as suspicious cash transactions to prevent criminal activities such as money laundering. “Banks are already reporting billions of pieces of information and you’re getting to the point where the banks are becoming the police force for the IRS,” Merski said. “I don’t think people, small business owners know about this profiling that the IRS wants to put together,” he added. “So, it’s basically a profiling; they want to see your transactions and create a profile on you, and if they don’t like what they see, then they can go after you.” Treasury Secretary Janet Yellen sent a letter to House Ways and Means Committee Chairman Richard Neal (D-Mass.) last week, asking Democrats to include a “sufficiently comprehensive” reporting provision in the bill “so that tax evaders are not able to structure financial accounts to avoid it.” It is unclear whether some version of the proposal will make it into the final bill, but the Ways and Means Committee left out the administration’s proposal in the legislation approved by the committee due to the growing backlash. Neal, however, indicated that the committee is in discussions with the administration on various proposals to increase reporting requirements. According to Merski, the provision could be added back to the budget reconciliation bill at any stage in the process, especially at the last minute. The bill only needs a simple majority to pass in the Senate. “Our fear is that this is so onerous that they’re waiting to the last second to put this in, but they’re dead serious about putting this proposal in,” he said. An ICBA poll conducted by Morning Consult found that 67 percent of voters oppose the new IRS reporting proposal. “The provision is a violation of Americans’ privacy rights and would be a crushing burden on community banks and credit unions struggling in the midst of the pandemic,” John Berlau, a senior fellow at the Competitive Enterprise Institute, told The Epoch Times. “The IRS already gets plenty of data on taxpayers through forms such as 1099s, and does not need instant access to these small transactions to go after tax cheats,” he said. According to the Treasury Department, Biden’s proposal is “integral to addressing evasion.” The tax gap disproportionately benefits wealthy people because their income mainly comes from “non-labor sources where misreporting is common,” the Treasury report stated. “The tax gap totaled nearly $600 billion in 2019 and will rise to about $7 trillion over the course of the next decade if left unaddressed.” Tyler Durden Thu, 09/23/2021 - 10:00.....»»

Category: blogSource: zerohedge2 hr. 40 min. ago

Biden reportedly is set to nominate a law professor critical of crypto and big banks to run the OCC

Omarova previously served under President George W. Bush's administration as a special adviser for regulatory policy in the Treasury Department. The White House. Ken Cedeno/Reuters President Joe Biden is set to nominate Cornell University law professor Saule Omarova to head the Office of the Comptroller of the Currency, according to a Bloomberg report. The banking law professor has been a critic of cryptocurrencies and envisions a larger role for the government in overseeing banks. Omarova needs Senate confirmation to serve a five-year term. See more stories on Insider's business page. President Joe Biden is preparing to nominate a Cornell University law professor who has been critical of cryptocurrencies and envisions a larger role for the government in overseeing banks to run the Office of the Comptroller of the Currency, according to a Bloomberg report.Biden as soon as this week will name Saule Omarova as his choice to head the OCC, Bloomberg reported late Wednesday, citing three unnamed sources familiar with the nomination process. The OCC is a key regulator overseeing consumer banking and supervises large lenders such as Bank of America and JPMorgan Chase.Omarova, a banking law professor, is expected to push for tougher oversight and rules in the industry. A native of Kazakhstan, Omarova in an October 2020 academic paper wrote about a blueprint for a "People's Ledger," or a comprehensive restructuring of the central bank balance sheet to democratize money and finance the world's largest economy. By separating the lending function from their monetary function, a proposed reform for banks would "effectively 'end banking,' as we know it," with Omarova making a direct play on the title of the 2014 book, "The End of Banking: Money, Credit, and the Digital Revolution". Biden's aides were vetting Omarova in August, according to The New York Times, noting that Omarova has said cryptocurrency operations could allow banks to conduct more trading activity out of oversight of the Federal Reserve and other regulators. Bloomberg reported that Omarova contends that digital tokens threaten to destabilize the economy and are vulnerable to abuse by private firms at the expense of public safeguards. Omarova served in President George W. Bush's administration as a special adviser for regulatory policy in the Treasury Department. She's practiced law at Davis Polk & Wardwell, specializing in corporate transactions and advisory work in financial regulation.If confirmed by the Senate to a five-year term, Omarova would take over from Michael Hsu, a former Fed official who has been running the OCC on an acting basis since May. Hsu this week told a blockchain panel that crypto and decentralized finance look similar to the financial instruments that sparked the 2008 global financial crisis.Read the original article on Business Insider.....»»

Category: smallbizSource: nyt3 hr. 56 min. ago

Temporary Fixes Push The FTSE 100 Over 7,000 Mark

“A series of temporary fixes to ominous global problems has pushed the FTSE 100 back over the psycologically important 7,000 mark but there’s a chance the nuts and bolts may weaken again, and the wheels could fall off the recovery. Q2 2021 hedge fund letters, conferences and more Mining Stocks: The Top Risers Today On […] “A series of temporary fixes to ominous global problems has pushed the FTSE 100 back over the psycologically important 7,000 mark but there’s a chance the nuts and bolts may weaken again, and the wheels could fall off the recovery. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Activist Investing Case Study! Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below! (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more Mining Stocks: The Top Risers Today On The FTSE 100 The deal to settle a domestic bond payment due to be made by the crisis hit Chinese property group Evergrande, seems to have calmed nerves among investors and stopped immediate contagion to other sectors. Mining stocks, which were among the worst hit on Monday when fears mounted that a collapse of the firm was imminent, are among the top risers today on the FTSE 100. Worries about the immediate impact on demand for raw materials for construction have subsided but with another debt payment due to be made by Evergrande on an overseas bond tomorrow, the myriad problems facing the group are far from over. In the UK, the latest supply chain crisis has been patched up, with the government stepping in to pay the operating costs for a major CO2 producter. CF industries shut two sites that produce 60% of the UK's commercial carbon dioxide supplies, because of soaring gas prices. Again this may just be a kludge with only three weeks of financial support guaranteed and now the energy regulator OFGEM is warning that more energy suppliers could go to the wall. It’s clear the crisis in the energy sector is far from over, and companies will be forced to absorb costs, hitting margins or pass rises onto customers, fuelling inflation concerns. With weaknesses in supply chains exposed, and concerns rising that a possible property price meltdown in China could spread, all eyes are on the Federal Reserve, with hopes that the central bank will soften the blow of any monetary tightening. Although the Federal Open Markets Committee is forecast to say it’s discussed easing off from the pedal of quantitative easing towards the end of the year, no firm decision is expected. There is a growing consensus that inflation may not be as transitory as first thought, but a sluggish jobs situation, stubbornly high covid infection rates and concerns about dragging economic growth are likely to stop a fast acceleration away from the era of ultra cheap money.’’ About Hargreaves Lansdown Over 1.64 million clients trust us with £135.5 billion (as at 30 June 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month. Updated on Sep 22, 2021, 9:02 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk16 hr. 55 min. ago

Rescued by the Fed Again?

S&P 500 recovered only to dive again – carving out a base? The bulls are attempting to, but neither value, nor tech, nor the credit markets are convincing. The dust is settling though, and the bears are equally in need of a fresh reason to sell – the intraday tug of war is entirely reasonable […] S&P 500 recovered only to dive again – carving out a base? The bulls are attempting to, but neither value, nor tech, nor the credit markets are convincing. The dust is settling though, and the bears are equally in need of a fresh reason to sell – the intraday tug of war is entirely reasonable as Evergrande failed to spook the markets more. Just wait for what happens when the markets come face to face with another unacknowledged event of this magnitude. In our era, it‘s about the contagion effect, manic-depressive market psychology, and uncertainty of the impact. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Activist Investing Case Study! Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below! (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more It‘s not only about China real estate cooling down, spilling over to Hong Kong. Wtll the House approval on the bill to suspend fresh borrowing obstacles and avoid a partial shutdown do? What would the Senate say – and then everyone as the tax tsunami keeps approaching? Global liquidity isn‘t rising after all either. Fed taper is a side show, but still one that too many are glued to. The dollar would suffer if it doesn‘t materialize later today – and it won‘t be announced, which would make precious metals rejoice. Back to stocks, these are also likely to welcome no taper. The Fed has been already tightening (which means these days it was decreasing the pace of expansion) through the back door, bringing down inflation expectations in spite of the real world input costs, shipping rates and frail supply chains challenges on top of the job market issues. Transitory inflation is still the mainstream thesis – the shift to real assets will become more accentuated once the realization of a higher and entrenched inflation arrives. And it‘s not about real estate and owners‘ equivalent rent either. Commodities did welcome yesterday‘s reprieve, and Treasury yields are unlikely to clobber them the way perceived systemic risks could (did). In a decelerating real economy faced with numerous deflationary pressures, the slow and steady rising yields phase, is deferred for now. And when these do rise again, it may or may not be about returning economic growth, but forced by the systemic realities. Remember that rates are very low by historic comparisons, and the resilence to absorb a modest rise (think 10-year more than a bit above 2%) won‘t be there without consequences. Cashing in on the S&P 500 short profits yesterday, was reasonable from the total portfolio risk point of view (did I say a fresh high was reached?). Let‘s move right into the charts (all courtesy of www.stockcharts.com). S&P 500 and Nasdaq Outlook Daily hesitation followed by more downside, but volume is decreasing – stocks look readying an upswing attempt. Credit Markets High yield corporate bonds merely kept opening gains – there is still hesitation, and the window of opportunity for the bulls is narrow. Gold, Silver and Miners Positive price action of gold, joined by silver – the waiting miners reveal that a little consolidation is likely before the Fed speaks. Crude Oil Oil stocks show that the appetite for oil might be returning, and that‘s confirmed by the volume examination. Commodities such as oil and copper stand to benefit from calming the Evergrande and central bank jitters. Copper Copper gave up opening losses only to rebound before the closing bell. Volume could have been larger, but the beaten down red metal can keep rebounding at its own pace – the smaller volume is an indication it won‘t be a one-way path. Bitcoin and Ethereum Bitcoin and Ethereum haven‘t really recovered from the selloff, and the bears are holding the upper hand now. Summary My yesterday‘s question „Is the selling over, is it not?“ has the same answer „Still inconclusive, but time for the bears is running short.“ It looks like the markets are positioning for a return to risk-on based on today‘s FOMC, which is what quite a few would like to take as an opportunity to sell into strength. The point is the Fed won‘t surprise today, and the price gyrations are likely to continue, albeit at a lesser magnitude. Thank you for having read today‘s free analysis, which is available in full at my homesite. There, you can subscribe to the free Monica‘s Insider Club, which features real-time trade calls and intraday updates for all the five publications: Stock Trading Signals, Gold Trading Signals, Oil Trading Signals, Copper Trading Signals and Bitcoin Trading Signals. Thank you, Monica Kingsley Stock Trading Signals Gold Trading Signals Oil Trading Signals Copper Trading Signals Bitcoin Trading Signals www.monicakingsley.co mk@monicakingsley.co All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice. Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make. Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice. Updated on Sep 22, 2021, 9:27 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk16 hr. 55 min. ago

Pfizer CEO On Providing 500 Million Vaccines To Low Income Countries

Following is the unofficial transcript of a CNBC interview with Pfizer Inc. (NYSE:PFE) Chairman and CEO Albert Bourla on CNBC’s “Squawk Box” (M-F, 6AM-9AM ET) today, Wednesday, September 22. Following is a link to video on CNBC.com: Q2 2021 hedge fund letters, conferences and more Pfizer CEO On Providing 500 Million Vaccines To Low Income […] Following is the unofficial transcript of a CNBC interview with Pfizer Inc. (NYSE:PFE) Chairman and CEO Albert Bourla on CNBC’s “Squawk Box” (M-F, 6AM-9AM ET) today, Wednesday, September 22. Following is a link to video on CNBC.com: if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more Pfizer CEO On Providing 500 Million Vaccines To Low Income Countries MEG TIRRELL: That special guest is Albert Bourla, the CEO of Pfizer. Albert, thanks for being with us this morning. Let's start with the news of the day, at least 500 million doses add to a previous agreement for the same number. They started shipping last month and will continue over the next year we understand. Tell us about your expectation for what these agreements will do for the course of the pandemic. ALBERT BOURLA: I think they will enable way more equitable access to our vaccines. When we started, Meg, more than a year, we're going to begin with the pandemic. It was always in our minds that we need to have a vaccine that will be available to all and the first thing that we had to do was to develop the vaccine because now it's considered given but the months ago, nobody thought that this could be done. The second was to manufacture enough so that everybody will have and we are gearing up our manufacturing capacity. Right now, at the end of the month, we will have manufactured 2 billion doses, 500 of which will be gone to the low- and middle-income countries. By the end of the quarter 3 billion doses, 1 billion of which will go to the low- and middle-income countries. And the third was to set the price that will enable everybody to access. As you know the price from the high-income countries is the cost of takeaway meal and this price for the government because their citizens are paying nothing. But for the middle-income countries, we are charging half of this price and the low-income countries we are charging basically at non-for-profit. The US government stepping once more 1 billion doses will be donated to the poorest of the countries, not to the middle and low but to the poorest countries, and that will not be given to them at the non-for-profit price, it will be given free because US is covering the cost. So, I think it is a great news for humanity and frankly it is great news for us because we are very proud that our vaccine will save the lives of people around the world. TIRRELL: How do you respond then to criticisms like from former CDC Director Dr. Tom Frieden, who has been pointing out on Twitter over the last week that he thinks this inequity is quote, “shameful.” He says, “While focusing on selling expensive vaccines to rich countries, Moderna and Pfizer are doing next to nothing to close the global gap in vaccine supply.” How do you respond to criticisms like that? BOURLA: Well I respond that already we have seen 500 million doses to low- and middle-income countries, that we will see a billion doses by the end of this year, not in the near future, by the end of this year. And we will do at least 1 billion doses next year and I think the facts are speaking for themselves. TIRRELL: Is there more that Pfizer could do? There's also some focus on the infrastructure in developing countries and there's been criticisms of the Biden administration for delivering perhaps vaccines but then not delivering the sort of cold chain functionality to be able to store and move those vaccines around or helping get vaccinators to be able to help roll out these vaccines. What more do you think can be done to expedite all of this? BOURLA: Clearly there's more that can be done in terms of infrastructure in the poorest countries so that they can absorb vaccines so this kind of technology that they need special conditions like ultra-cold chain, etc. I think this is something that WHO is doing and this is something that was ourselves, we are working very intensively to help, although it is not let’s say our direct responsibility is to provide the vaccine but we are working also on the last mile, how we can assist, so that they can move eventually this vaccine to the citizens. TIRRELL: There's also been a big focus on ramping up production of mRNA vaccines in these developing countries so that they're not dependent on manufacturers elsewhere providing them. You do say or Uğur Şahin, your partner at BioNTech, says in your release today that you are exploring how to build the sustainable mRNA production infrastructure in low-income countries over the mid- and long-term. It seems like that is not a near term goal necessarily just because does it take that long to build this up, could scaling up happen in these countries any faster than it's happening already? BOURLA: Well yes, it will take a very long time to be able to build infrastructure that it is able to handle this higher level of technology. This is not easy. This is not making, you know, any type of goods so this is really, really high-end, regard not only sophisticated investments but thousands of people that they are highly skilled to do that. I don't say that it is impossible to be done but it will take time. TIRRELL: And of course, here in the United States, we're all focused on boosters, who's going to get their third shot and when. We're expecting an FDA decision on that today or tomorrow and CDC will, will vote. How do you in this position of deciding, where to take orders from and where to deliver things, respond to the pressures you get from the World Health Organization which is saying people shouldn't get boosters until the end of the year until more people have gotten their first doses. How do you weigh all those pressures coming in? BOURLA: Look, I think there's, as a whole that the decision to provide a booster should be made on the merits of the science. This is not correct to say that I will not give boosters to one because I prefer to give primary dose to someone else. The second is as I said that we should not be in, we should not resolve it with a “or,” we should resolve it with an “and.” Boosters should be given and other doses should be given to the other countries and this is the meaning of this agreement that we're doing today with the United States. And the third I would say that they, doses for this year have been allocated long ago. Everybody has placed their orders and with the first orders placed, first deliveries are coming out and so that will not change even if the boosters are approved which I expect will be. We will not give more to the countries that are approving boosters so that they can do the boosters. We will give the quantities to everyone that we have committed to give this year, and then as I said, this year, we're going to do a billion doses to the lower, middle-income countries. BECKY QUICK: Hey, Albert, on that point, it just, we know that the FDA panel that met last week voted no on the original question was that booster shots would be available for anyone ages 16 and up. They did vote yes on a more qualified picture, people ages 65 and up, people who have comorbidities and, and people who were maybe exposed at work because of the jobs that they do, but that still leaves a big gap if the FDA eventually goes through and approves the ladder question, not the opening. On that first question, they said they didn't have enough science to prove it. The science that was put in front of them didn't prove that those ages 16 and up needed boosters. When will we see more science, what's the next step or are people just kind of left to fend for themselves at this point? BOURLA: I think time will bring data because everybody's collecting data and I’m sure pretty soon they will have more data so that they can reevaluate their recommendations. It is clear from the data that we have seen that we support it to the need to give broad recommendations. The majority of the committee clearly thought that this is not the right time for people to receive in earlier phases. So, they, I guess they will expect to see when is the right time. What I want to say is in pandemic typically, it's very difficult to come to the right time. You're coming either too early or too late. ANDREW ROSS SORKIN: Albert, when you think about efficacy, there seems to be different definitions of efficacy in the United States versus Israel and people are measuring it differently. In some cases, it's hospitalization and death. In others, it's simply infection upfront. Do we have to redefine what efficacy really is and what it should be and what we're trying to avoid? BOURLA: I think science is to measure everything so and we should be very clear when you speak about efficacy, if you refer to efficacy against severe disease, or if we speak about efficacy in general in disease or infection, and the data for example for me is coming from all three categories is not that they're coming only for mild infections. They had seen drop in the protection against severe disease as well. SORKIN: Do you have a view on why it appears that the efficacy of the Pfizer vaccine seems to be lesser, at least at the moment, based on some of the numbers than the, than the Moderna vaccine. It appears that in the case of Moderna, it has a higher efficacy or at least more durable efficacy, is that a function of the fact that, it's that there's more of it, more vaccine, actually that's put in the arm? Is it a function of the fact that between the first and second dose, there's a longer wait period, four weeks rather than three weeks, what do you, or is it simply the timing of what we've seen in the studies? A lot of people got Pfizer earlier. BOURLA: I think that it is the wrong thing to start comparing vaccines, particularly in public and I don't think I would like to do it. But nevertheless, given your, your question, I'm not convinced that one is better than the other or it lasted longer than the other because of the reasons that we just said that when those studies compare, they don't exhaust from the time of the second dose and also they don't adjust from the fact that Pfizer was given way earlier to elder, high risk people. And so, we are comparing more months of since the first dose from Pfizer and very different population. But again, I said that the both of them are wonderful vaccines, I don't want to make comparisons and those that make comparisons, they are wrong. QUICK: Albert, can you give us an update on where things stand for the vaccine approval at least emergency use authorization for kids ages five to 11. We've heard a lot and the latest that we've gotten is maybe available by Halloween. But what does that actually mean? Does it really mean that our kids might actually get to the shots by then, will it be fully distributed? Is it going to be hard to find this because I know you have to give different vial sizes so as a result it's kind of gearing up the entire process again like we did at the beginning of the year. BOURLA: We are going to be ready once FDA approves the vaccine, provided that they will approve it, to be able to distribute it. And I know that we will submit our data pretty soon. The data are very positive, but I cannot comment when FDA will approve it. This is absolutely up to them to take their time to do their review and do the approval, the time that they're comfortable if they approve it. TIRRELL: And Albert, you actually got data I think a little earlier than people expected in that age group five to 11. What are you expecting in terms of younger kids asking completely unbiased as a parent of a two-and-a-half-year-old? BOURLA: Meg, as you know, we are always coming ahead of people's expectations so I hope that we will not disappoint them. TIRRELL: So, your CFO Frank D’Amelio had suggested perhaps you're about a month behind for younger children. Is that the timeline you're looking at for down to age two, or down to age six months? BOURLA: Well yeah, that's one to two months I would say, somewhere there. TIRRELL: Okay, and just to go back to that booster discussion that that Becky was talking about. Were you surprised that the panel voted to narrow the recommendation for, for whom, who should get boosters here in the US as we're seeing them given so broadly in Israel and even to everybody over the age of 50 in the UK? BOURLA: Yes, I was surprised but you know this is not about me being surprised. This is about the committee which is composed by renowned scientists. They have very high integrity. They have high expertise and they came to this conclusion. Our scientists also have very high integrity and they have very high expertise and they came to different conclusion. Israel scientists, UK scientists is different from German scientists also they have high expertise, but this is the role of committees. They have responsibility to recommend and then the administration has the responsibility to implement health care policies that they are important. And, you know, I think we should let the system work. QUICK: With all of the countries that you just mentioned, is there one Albert that has been the easiest to work with or the most difficult to work with and maybe the administration maybe the bureaucracy that you deal with. What, what would you say? BOURLA: I would say that all the candidates have stepped up and they are wonderful and frankly, I had the opportunity because of that, to, to connect personally with state leaders and with administration of many countries and I understand there are going to do the best for their people and they have to deal with very tough decisions and sometimes they get it right. Sometimes they get it wrong. But they are all having the best of intentions so I wouldn’t separate anyone on this. TIRRELL: Alright, Albert. I think that's all the time we've got. We really appreciate you being with us this morning and we look forward to all of these updates coming up. Thanks so much. BOURLA: Thank you very much. Thank you very much, Meg. Thank you. 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Category: blogSource: valuewalk16 hr. 55 min. ago