Advertisements



Ethiopian Airlines sees Boeing 737 MAX compensation deal by end-June

Ethiopian Airlines expects a settlement with planemaker Boeing by end of June over compensation related to the 737 MAX grounding in March 2019 following two fatal crashes, CEO Tewolde Gebremariam told Reuters on Friday......»»

Category: topSource: reutersMay 15th, 2020

Futures Slide Alongside Cryptocurrencies Amid China Crackdown

Futures Slide Alongside Cryptocurrencies Amid China Crackdown US futures and European stocks fell amid ongoing nerves over the Evergrande default, while cryptocurrency-linked stocks tumbled after the Chinese central bank said such transactions are illegal. Sovereign bond yields fluctuated after an earlier selloff fueled by the prospect of tighter monetary policy. At 745am ET, S&P 500 e-minis were down 19.5 points, or 0.43%, Nasdaq 100 e-minis were down 88.75 points, or 0.58% and Dow e-minis were down 112 points, or 0.33%. In the biggest overnight news, Evergrande offshore creditors remain in limbo and still haven't received their coupon payment effectively starting the 30-day grace period, while also in China, the State Planner issued a notice on the crackdown of cryptocurrency mining, will strictly prohibit financing for new crypto mining projects and strengthen energy consumption controls of new crypto mining projects. Subsequently, the PBoC issued a notice to further prevent and dispose of the risks from speculating on cryptocurrencies, to strengthen monitoring of risks from crypto trading and such activities are illegal. The news sent the crypto space tumbling as much as 8% while cryptocurrency-exposed stocks slumped in U.S. premarket trading. Marathon Digital (MARA) drops 6.5%, Bit Digital (BTBT) declines 4.7%, Riot Blockchain (RIOT) -5.9%, Coinbase -2.8%. Big banks including JPMorgan, Citigroup, Morgan Stanley and Bank of America Corp slipped about 0.5%, while oil majors Exxon Mobil and Chevron Corp were down 0.4% and 0.3%, respectively, in premarket trading.Mega-cap FAAMG tech giants fell between 0.5% and 0.6%. Nike shed 4.6% after the sportswear maker cut its fiscal 2022 sales expectations and warned of delays during the holiday shopping season. Several analysts lowered their price targets on the maker of sports apparel and sneakers after the company cut its FY revenue growth guidance to mid-single- digits. Here are some of the biggest U.S. movers today: Helbiz (HLBZ) falls 10% after the micromobility company filed with the SEC for the sale of as many as 11m shares by stockholders. Focus Universal (FCUV), an online marketing company that’s been a favorite of retail traders, surged 26% in premarket trading after the stock was cited on Stocktwits in recent days. Vail Resorts (MTN) falls 2.7% in postmarket trading after its full-year forecasts for Ebitda and net income missed at the midpoint. GlycoMimetics (GLYC) jumps 15% postmarket after announcing that efficacy and safety data from a Phase 1/2 study of uproleselan in patients with acute myeloid leukemia were published in the journal Blood on Sept. 16. VTV Therapeutics (VTVT) surges 30% after company says its HPP737 psoriasis treatment showed favorable safety and tolerability profile in a multiple ascending dose study. Fears about a sooner-than-expected tapering amid signs of stalling U.S. economic growth and concerns over a spillover from China Evergrande’s default had rattled investors in September, putting the benchmark S&P 500 index on course to snap a seven-month winning streak. Elaine Stokes, a portfolio manager at Loomis Sayles & Co., told Bloomberg Television, adding that “what they did is tell us that they feel really good about the economy.” While the bond selloff vindicated Treasury bears who argue yields are too low to reflect fundamentals, others see limits to how high they can go. “We’d expected bond yields to go higher, given the macro situation where growth is still very strong,” Sylvia Sheng, global multi-asset strategist with JPMorgan Asset Management, said on Bloomberg Television. “But we do stress that is a modest view, because we think that upside to yields is still limited from here given that central banks including the Fed are still buying bonds.” Still, Wall Street’s main indexes rallied in the past two session and are set for small weekly gains. European equities dipped at the open but trade off worst levels, with the Euro Stoxx 50 sliding as much as 1.1% before climbing off the lows. France's CAC underperformed at the margin. Retail, financial services are the weakest performers. EQT AB, Europe’s biggest listed private equity firm, fell as much as 8.1% after Sweden’s financial watchdog opened an investigation into suspected market abuse. Here are some of the other biggest European movers today: SMCP shares surge as much as 9.9%, advancing for a 9th session in 10, amid continued hopes the financial troubles of its top shareholder will ultimately lead to a sale TeamViewer climbs much as 4.2% after Bankhaus Metzler initiated coverage with a buy rating, citing the company’s above-market growth AstraZeneca gains as much as 3.6% after its Lynparza drug met the primary endpoint in a prostate cancer trial Darktrace drops as much as 9.2%, paring the stock’s rally over the past few weeks, as a technical pattern triggered a sell signal Adidas and Puma fall as much as 4% and 2.9%, respectively, after U.S. rival Nike’s “large cut” to FY sales guidance, which Jefferies said would “likely hurt” shares of European peers Earlier in the session, Asian stocks rose for a second day, led by rallies in Japan and Taiwan, following U.S. peers higher amid optimism over the Federal Reserve’s bullish economic outlook and fading concerns over widespread contagion from Evergrande. Stocks were muted in China and Hong Kong. India’s S&P BSE Sensex topped the 60,000 level for the first time on Friday on optimism that speedier vaccinations will improve demand for businesses in Asia’s third-largest economy. The MSCI Asia Pacific Index gained as much as 0.7%, with TSMC and Sony the biggest boosts. That trimmed the regional benchmark’s loss for the week to about 1%. Japan’s Nikkei 225 climbed 2.1%, reopening after a holiday, pushing its advance for September to 7.7%, the best among major global gauges. The Asian regional benchmark pared its gain as Hong Kong stocks fell sharply in late afternoon trading amid continued uncertainty, with Evergrande giving no sign of making an interest payment that was due Thursday. Among key upcoming events is the leadership election for Japan’s ruling party next week, which will likely determine the country’s next prime minister. “Investor concerns over the Evergrande issue have retreated a bit for now,” said Hajime Sakai, chief fund manager at Mito Securities Co. in Tokyo. “But investors will have to keep downside risk in the corner of their minds.” Indian stocks rose, pushing the Sensex above 60,000 for the first time ever. Key gauges fell in Singapore, Malaysia and Australia, while the Thai market was closed for a holiday. Treasuries are higher as U.S. trading day begins after rebounding from weekly lows reached during Asia session, adding to Thursday’s losses. The 10-year yield was down 1bp at ~1.42%, just above the 100-DMA breached on Thursday for the first time in three months; it climbed to 1.449% during Asia session, highest since July 6, and remains 5.2bp higher on the week, its fifth straight weekly increase. Several Fed speakers are slated, first since Wednesday’s FOMC commentary set forth a possible taper timeline.  Bunds and gilts recover off cheapest levels, curves bear steepening. USTs bull steepen, richening 1.5bps from the 10y point out. Peripheral spreads are wider. BTP spreads widen 2-3bps to Bunds. In FX, the Bloomberg Dollar Spot Index climbed back from a one-week low as concern about possible contagion from Evergrande added to buying of the greenback based on the Federal Reserve tapering timeline signaled on Wednesday. NZD, AUD and CAD sit at the bottom of the G-10 scoreboard. ZAR and TRY are the weakest in EM FX. The pound fell after its rally on Thursday as investors looked ahead to BOE Governor Andrew Bailey’s sPeech next week about a possible interest-rate hike. Traders are betting that in a contest to raise borrowing costs first, the Bank of England will be the runaway winner over the Federal Reserve. The New Zealand and Aussie dollars led declines among Group-of-10 peers. The euro was trading flat, with a week full of events failing “to generate any clear directional move,” said ING analysts Francesco Pesole and Chris Turner. German IFO sentiment indeces will “provide extra indications about the area’s sentiment as  businesses faced a combination of delta variant concerns and lingering supply disruptions”. The Norwegian krone is the best performing currency among G10 peers this week, with Thursday’s announcement from the Norges Bank offering support In commodities, crude futures hold a narrow range up around best levels for the week. WTI stalls near $73.40, Brent near $77.50. Spot gold extends Asia’s gains, adding $12 on the session to trade near $1,755/oz. Base metals are mixed, LME nickel and aluminum drop ~1%, LME tin outperforms with a 2.8% rally. Bitcoin dips after the PBOC says all crypto-related transactions are illegal. Looking to the day ahead now, we’ll hear from Fed Chair Powell, Vice Chair Clarida and the Fed’s Mester, Bowman, George and Bostic, as well as the ECB’s Lane and Elderson, and the BoE’s Tenreyro. Finally, a summit of the Quad Leaders will be held at the White House, including President Biden, and the Prime Ministers of Australia, India and Japan. Market Snapshot S&P 500 futures down 0.3% to 4,423.50 STOXX Europe 600 down 0.7% to 464.18 German 10Y yield fell 8.5 bps to -0.236% Euro little changed at $1.1737 MXAP up 0.4% to 201.25 MXAPJ down 0.5% to 643.20 Nikkei up 2.1% to 30,248.81 Topix up 2.3% to 2,090.75 Hang Seng Index down 1.3% to 24,192.16 Shanghai Composite down 0.8% to 3,613.07 Sensex up 0.2% to 60,031.83 Australia S&P/ASX 200 down 0.4% to 7,342.60 Kospi little changed at 3,125.24 Brent Futures up 0.4% to $77.57/bbl Gold spot up 0.7% to $1,755.38 U.S. Dollar Index little changed at 93.14 Top Overnight News from Bloomberg China Evergrande Group’s unusual silence about a dollar-bond interest payment that was due Thursday has put a focus on what might happen during a 30-day grace period. The Reserve Bank of Australia’s inflation target is increasingly out of step with international counterparts and fails to account for structural changes in the country’s economy over the past 30 years, Westpac Banking Corp.’s Bill Evans said. With central banks from Washington to London this week signaling more alarm over faster inflation, the ultra-stimulative path of the euro zone and some of its neighbors appears lonelier than ever. China’s central bank continued to pump liquidity into the financial system on Friday as policy makers sought to avoid contagion stemming from China Evergrande Group spreading to domestic markets. A more detailed look at global markets courtesy of Newsquawk Asian equity markets traded mixed with the region failing to fully sustain the impetus from the positive performance across global counterparts after the silence from Evergrande and lack of coupon payments for its offshore bonds, stirred uncertainty for the company. ASX 200 (-0.4%) was negative as underperformance in mining names and real estate overshadowed the advances in tech and resilience in financials from the higher yield environment. Nikkei 225 (+2.1%) was the biggest gainer overnight as it played catch up to the prior day’s recovery on return from the Autumnal Equinox holiday in Japan and with exporters cheering the recent risk-conducive currency flows, while KOSPI (-0.1%) was lacklustre amid the record daily COVID-19 infections and after North Korea deemed that it was premature to declare that the Korean War was over. Hang Seng (-1.2%) and Shanghai Comp. (-0.8%) were indecisive after further liquidity efforts by the PBoC were offset by concerns surrounding Evergrande after the Co. failed to make coupon payments due yesterday for offshore bonds but has a 30-day grace period with the Co. remaining quiet on the issue. Finally, 10yr JGBs were lower on spillover selling from global counterparts including the declines in T-notes as the US 10yr yield breached 1.40% for the first time since early-July with the pressure in bonds also stemming from across the Atlantic following a more hawkish BoE, while the presence of the BoJ in the market today for over JPY 1.3tln of government bonds with 1yr-10yr maturities did very little to spur prices. Top Asian News Rivals for Prime Minister Battle on Social Media: Japan Election Asian Stocks Rise for Second Day, Led by Gains in Japan, Taiwan Hong Kong Stocks Still Wagged by Evergrande Tail Hong Kong’s Hang Seng Tech Index Extends Decline to More Than 2% European equities (Stoxx 600 -0.9%) are trading on the back foot in the final trading session of the week amid further advances in global bond yields and a mixed APAC handover. Overnight, saw gains for the Nikkei 225 of 2.1% with the index aided by favourable currency flows, whilst Chinese markets lagged (Shanghai Comp. -0.8%, Hang Seng -1.6%) with further liquidity efforts by the PBoC offset by concerns surrounding Evergrande after the Co. failed to make coupon payments due yesterday for offshore bonds. As context, despite the losses in Europe today, the Stoxx 600 is still higher by some 1.2% on the week. Stateside, futures are also on a softer footing with the ES down by 0.4% ahead of a busy Fed speaker schedule. Back to Europe, sectors are lower across the board with Retail and Personal & Household Goods lagging peers. The former has been hampered by losses in Adidas (-3.0%) following after hours earnings from Nike (-4.2% pre-market) which saw the Co. cut its revenue guidance amid supply chain woes. AstraZeneca (+2.1%) sits at the top of the FTSE 100 after announcing that the Lynparza PROpel trial met its primary endpoint. Daimler’s (+0.1%) Mercedes-Benz has announced that it will take a 33% stake in a battery cell manufacturing JV with Total and Stellantis. EQT (-6.5%) sits at the foot of the Stoxx 600 after the Swedish FSA announced it will open an investigation into the Co. Top European News EQT Investigated by Sweden’s FSA Over Suspected Market Abuse Gazprom Says Claims of Gas Under-supply to Europe Are ‘Absurd’ German Sept. Ifo Business Confidence 98.8; Est. 99 German Business Index at Five-Month Low in Pre-Election Verdict In FX, the rot seems to have stopped for the Buck in terms of its sharp and marked fall from grace amidst post-FOMC reflection and re-positioning in the financial markets on Thursday. Indeed, the Dollar index has regained some poise to hover above the 93.000 level having recoiled from 93.526 to 92.977 over the course of yesterday’s hectic session that saw the DXY register a marginal new w-t-d high and low at either end of the spectrum. Pre-weekend short covering and consolidation may be giving the Greenback a lift, while the risk backdrop is also less upbeat ahead of a raft of Fed speakers flanking US new home sales data. Elsewhere, the Euro remains relatively sidelined and contained against the Buck with little independent inspiration from the latest German Ifo survey as the business climate deteriorated broadly in line with consensus and current conditions were worse than forecast, but business expectations were better than anticipated. Hence, Eur/Usd is still stuck in a rut and only briefly/fractionally outside 1.1750-00 parameters for the entire week, thus far, as hefty option expiry interest continues to keep the headline pair in check. However, there is significantly less support or gravitational pull at the round number today compared to Thursday as ‘only’ 1.3 bn rolls off vs 4.1 bn, and any upside breach could be capped by 1.1 bn between 1.1765-85. CAD/NZD/AUD - Some payback for the non-US Dollars following their revival, with the Loonie waning from 1.2650+ peaks ahead of Canadian budget balances, though still underpinned by crude as WTI hovers around Usd 73.50/brl and not far from decent option expiries (from 1.2655-50 and 1.2625-30 in 1.4 bn each). Similarly, the Kiwi has faded after climbing to within single digits of 0.7100 in wake of NZ trade data overnight revealing a much wider deficit as exports slowed and imports rose, while the Aussie loses grip of the 0.7300 handle and skirts 1.1 bn option expiries at 0.7275. CHF/GBP/JPY - The Franc is fairly flat and restrained following a dovish SNB policy review that left in lagging somewhat yesterday, with Usd/Chf and Eur/Chf straddling 0.9250 and 1.0850 respectively, in contrast to Sterling that is paring some hawkish BoE momentum, as Cable retreats to retest bids circa 1.3700 and Eur/Gbp bounces from sub-0.8550. Elsewhere, the Yen has not been able to fend off further downside through 110.00 even though Japanese participants have returned to the fray after the Autumn Equinox holiday and reports suggest some COVID-19 restrictions may be lifted in 13 prefectures on a trial basis. SCANDI/EM/PM/CRYPTO - A slight change in the pecking order in Scandi-land as the Nok loses some post-Norges Bank hike impetus and the Sek unwinds a bit of its underperformance, but EM currencies are bearing the brunt of the aforementioned downturn in risk sentiment and firmer Usd, with the Zar hit harder than other as Gold is clings to Usd 1750/oz and Try down to deeper post-CBRT rate cut lows after mixed manufacturing sentiment and cap u readings. Meanwhile, Bitcoin is being shackled by the latest Chinese crackdown on mining and efforts to limit risks from what it describes as unlawful speculative crypto currency trading. In commodities, WTI and Brent are set the conclude the week in the green with gains in excess of 2% for WTI at the time of writing; in-spite of the pressure seen in the complex on Monday and the first-half of Tuesday, where a sub USD 69.50/bbl low was printed. Fresh newsflow has, once again, been limited for the complex and continues to focus on the gas situation. More broadly, no update as of yet on the Evergrande interest payment and by all accounts we appear to have entered the 30-day grace period for this and, assuming catalysts remain slim, updates on this will may well dictate the state-of-play. Schedule wise, the session ahead eyes significant amounts of central bank commentary but from a crude perspective the weekly Baker Hughes rig count will draw attention. On the weather front, Storm Sam has been upgraded to a Hurricane and is expected to rapidly intensify but currently remains someway into the mid-Atlantic. Moving to metals, LME copper is pivoting the unchanged mark after a mixed APAC lead while attention is on Glencore’s CSA copper mine, which it has received an offer for; the site in 2020 produced circa. 46k/T of copper which is typically exported to Asia smelters. Elsewhere, spot gold and silver are firmer but have been very contained and remain well-within overnight ranges thus far. Which sees the yellow metal holding just above the USD 1750/oz mark after a brief foray below the level after the US-close. US Event Calendar 10am: Aug. New Home Sales MoM, est. 1.0%, prior 1.0% 10am: Aug. New Home Sales, est. 715,000, prior 708,000 Central Bank Speakers 8:45am: Fed’s Mester Discusses the Economic Outlook 10am: Powell, Clarida and Bowman Host Fed Listens Event 10:05am: Fed’s George Discusses Economic Outlook 12pm: Fed’s Bostic Discusses Equitable Community Development DB's Jim Reid concludes the overnight wrap WFH today is a bonus as it’s time for the annual ritual at home where the latest, sleekest, shiniest iPhone model arrives in the post and i sheepishly try to justify to my wife when I get home why I need an incremental upgrade. This year to save me from the Spanish Inquisition I’m going to intercept the courier and keep quiet. Problem is that such speed at intercepting the delivery will be logistically challenging as I remain on crutches (5 weeks to go) and can’t grip properly with my left hand due to an ongoing trapped nerve. I’m very glad I’m not a racehorse. Although hopefully I can be put out to pasture in front of the Ryder Cup this weekend. The big news of the last 24 hours has been a galloping global yield rise worthy of the finest thoroughbred. A hawkish Fed meeting, with the dots increasing and the end of QE potentially accelerated, didn’t quite have the ability to move markets but the global dam finally broke yesterday with Norway being the highest profile developed country to raise rates this cycle (expected), but more importantly a Bank of England meeting that saw the market reappraise rate hikes. Looking at the specific moves, yields on 10yr Treasuries were up +13.0bps to 1.430% in their biggest daily increase since 25 February, as both higher real rates (+7.9bps) and inflation breakevens (+4.9bps) drove the advance. US 10yr yields had been trading in a c.10bp range for the last month before breaking out higher, though they have been trending higher since dropping as far as 1.17% back in early-August. US 30yr yields rose +13.2bps, which was the biggest one day move in long dated yields since March 17 2020, which was at the onset of the pandemic and just days after the Fed announced it would be starting the current round of QE. The large selloff in US bonds saw the yield curve steepen and the long-end give back roughly half of the FOMC flattening from the day before. The 5y30y curve steepened 3.4bps for a two day move of -3.3bps. However the 2y10y curve steepened +10.5bps, completely reversing the prior day’s flattening (-4.2bps) and leaving the spread at 116bp, the steepest level since first week of July. 10yr gilt yields saw nearly as strong a move (+10.8bps) with those on shorter-dated 2yr gilts (+10.7bps) hitting their highest level (0.386%) since the pandemic began.That came on the back of the BoE’s latest policy decision, which pointed in a hawkish direction, building on the comment in the August statement that “some modest tightening of monetary policy over the forecast period is likely to be necessary” by saying that “some developments during the intervening period appear to have strengthened that case”. The statement pointed out that the rise in gas prices since August represented an upside risks to their inflation projections from next April, and the MPC’s vote also saw 2 members (up from 1 in August) vote to dial back QE. See DB’s Sanjay Raja’s revised rate hike forecasts here. We now expect a 15bps hike in February. The generalised move saw yields in other European countries rise as well, with those on 10yr bunds (+6.6bps), OATs (+6.5bps) and BTPs (+5.7bps) all seeing big moves higher with 10yr bunds seeing their biggest climb since late-February and back to early-July levels as -0.258%. The yield rise didn’t stop equity indices recovering further from Monday’s rout, with the S&P 500 up +1.21% as the index marked its best performance in over 2 months, and its best 2-day performance since May. Despite the mood at the end of the weekend, the S&P now starts Friday in positive territory for the week. The rally yesterday was led by cyclicals for a second straight day with higher commodity prices driving outsized gains for energy (+3.41%) and materials (+1.39%) stocks, and the aforementioned higher yields causing banks (+3.37%) and diversified financials (+2.35%) to outperform. The reopening trade was the other main beneficiary as airlines rose +2.99% and consumer services, which include hotel and cruiseline companies, gained +1.92%. In Europe, the STOXX 600 (+0.93%) witnessed a similarly strong performance, with index led by banks (+2.16%). As a testament to the breadth of yesterday’s rally, the travel and leisure sector (+0.04%) was the worst performing sector on this side of the Atlantic even while registering a small gain and lagging its US counterparts. Before we get onto some of yesterday’s other events, it’s worth noting that this is actually the last EMR before the German election on Sunday, which has long been signposted as one of the more interesting macro events on the 2021 calendar, the results of which will play a key role in not just domestic, but also EU policy. And with Chancellor Merkel stepping down after four terms in office, this means that the country will soon be under new management irrespective of who forms a government afterwards. It’s been a volatile campaign in many respects, with Chancellor Merkel’s CDU/CSU, the Greens and the centre-left SPD all having been in the lead at various points over the last six months. But for the last month Politico’s Poll of Polls has shown the SPD consistently ahead, with their tracker currently putting them on 25%, ahead of the CDU/CSU on 22% and the Greens on 16%. However the latest poll from Forschungsgruppe Wahlen yesterday suggested a tighter race with the SPD at 25, the CDU/CSU at 23% and the Greens at 16.5%. If the actual results are in line with the recent averages, it would certainly mark a sea change in German politics, as it would be the first time that the SPD have won the popular vote since the 2002 election. Furthermore, it would be the CDU/CSU’s worst ever result, and mark the first time in post-war Germany that the two main parties have failed to win a majority of the vote between them, which mirrors the erosion of the traditional big parties in the rest of continental Europe. For the Greens, 15% would be their best ever score, and exceed the 9% they got back in 2017 that left them in 6th place, but it would also be a disappointment relative to their high hopes back in the spring, when they were briefly polling in the mid-20s after Annalena Baerbock was selected as their Chancellor candidate. In terms of when to expect results, the polls close at 17:00 London time, with initial exit polls released immediately afterwards. However, unlike the UK, where a new majority government can immediately come to power the day after the election, the use of proportional representation in Germany means that it could potentially be weeks or months before a new government is formed. Indeed, after the last election in September 2017, it wasn’t until March 2018 that the new grand coalition between the CDU/CSU and the SPD took office, after attempts to reach a “Jamaica” coalition between the CDU/CSU, the FDP and the Greens was unsuccessful. In the meantime, the existing government will act as a caretaker administration. On the policy implications, it will of course depend on what sort of government is actually formed, but our research colleagues in Frankfurt have produced a comprehensive slidepack (link here) running through what the different parties want across a range of policies, and what the likely coalitions would mean for Germany. They also put out another note yesterday (link here) where they point out that there’s still much to play for, with the SPD’s lead inside the margin of error and with an unusually high share of yet undecided voters. Moving on to Asia and markets are mostly higher with the Nikkei (+2.04%), CSI (+0.53%) and India’s Nifty (+0.52%) up while the Hang Seng (-0.03%), Shanghai Comp (-0.07%) and Kospi (-0.10%) have all made small moves lower. Meanwhile, the Evergrande group missed its dollar bond coupon payment yesterday and so far there has been no communication from the group on this. They have a 30-day grace period to make the payment before any event of default can be declared. This follows instructions from China’s Financial regulators yesterday in which they urged the group to take all measures possible to avoid a near-term default on dollar bonds while focusing on completing unfinished properties and repaying individual investors. Yields on Australia and New Zealand’s 10y sovereign bonds are up +14.5bps and +11.3bps respectively this morning after yesterday’s move from their western counterparts. Yields on 10y USTs are also up a further +1.1bps to 1.443%. Elsewhere, futures on the S&P 500 are up +0.04% while those on the Stoxx 50 are down -0.10%. In terms of overnight data, Japan’s August CPI printed at -0.4% yoy (vs. -0.3% yoy expected) while core was unchanged in line with expectations. We also received Japan’s flash PMIs with the services reading at 47.4 (vs. 42.9 last month) while the manufacturing reading came in at 51.2 (vs. 52.7 last month). In pandemic related news, Jiji reported that Japan is planning to conduct trials of easing Covid restrictions, with 13 prefectures indicating they’d like to participate. This is likely contributing to the outperformance of the Nikkei this morning. Back to yesterday now, and one of the main highlights came from the flash PMIs, which showed a continued deceleration in growth momentum across Europe and the US, and also underwhelmed relative to expectations. Running through the headline numbers, the Euro Area composite PMI fell to 56.1 (vs. 58.5 expected), which is the lowest figure since April, as both the manufacturing (58.7 vs 60.3 expected) and services (56.3 vs. 58.5 expected) came in beneath expectations. Over in the US, the composite PMI fell to 54.5 in its 4th consecutive decline, as the index hit its lowest level in a year, while the UK’s composite PMI at 54.1 (vs. 54.6 expected) was the lowest since February when the country was still in a nationwide lockdown. Risk assets seemed unperturbed by the readings, and commodities actually took another leg higher as they rebounded from their losses at the start of the week. The Bloomberg Commodity Spot index rose +1.12% as Brent crude oil (+1.39%) closed at $77.25/bbl, which marked its highest closing level since late 2018, while WTI (+1.07%) rose to $73.30/bbl, so still a bit beneath its recent peak in July. However that is a decent rebound of roughly $11/bbl since its recent low just over a month ago. Elsewhere, gold (-1.44%) took a knock amidst the sharp move higher in yields, while European natural gas prices subsidised for a third day running, with futures now down -8.5% from their intraday peak on Tuesday, although they’re still up by +71.3% since the start of August. US negotiations regarding the upcoming funding bill and raising the debt ceiling are ongoing, with House Speaker Pelosi saying that the former, also called a continuing resolution, will pass “both houses by September 30,” and fund the government through the first part of the fiscal year, starting October 1. Treasury Secretary Yellen has said the US will likely breach the debt ceiling sometime in the next month if Congress does not increase the level, and because Republicans are unwilling to vote to raise the ceiling, Democrats will have to use the once-a-fiscal-year tool of budget reconciliation to do so. However Democrats, are also using that process for the $3.5 trillion dollar economic plan that makes up the bulk of the Biden agenda, and have not been able to get full party support yet. During a joint press conference with Speaker Pelosi, Senate Majority Leader Schumer said that Democrats have a “framework” to pay for the Biden Economic agenda, which would imply that the broad outline of a deal was reached between the House, Senate and the White House. However, no specifics were mentioned yesterday. With Democrats looking to vote on the bipartisan infrastructure bill early next week, negotiations today and this weekend on the potential reconciliation package will be vital. Looking at yesterday’s other data, the weekly initial jobless claims from the US for the week through September 18 unexpectedly rose to 351k (vs. 320k expected), which is the second week running they’ve come in above expectations. Separately, the Chicago Fed’s national activity index fell to 0.29 in August (vs. 0.50 expected), and the Kansas City Fed’s manufacturing activity index also fell more than expected to 22 in September (vs. 25 expected). To the day ahead now, and data highlights include the Ifo’s business climate indicator from Germany for September, along with Italian consumer confidence for September and US new home sales for August. From central banks, we’ll hear from Fed Chair Powell, Vice Chair Clarida and the Fed’s Mester, Bowman, George and Bostic, as well as the ECB’s Lane and Elderson, and the BoE’s Tenreyro. Finally, a summit of the Quad Leaders will be held at the White House, including President Biden, and the Prime Ministers of Australia, India and Japan. Tyler Durden Fri, 09/24/2021 - 08:12.....»»

Category: blogSource: zerohedgeSep 24th, 2021

Ethiopian Airlines sees Boeing 737 MAX compensation deal by end-June

Ethiopian Airlines expects a settlement with planemaker Boeing by end of June over compensation related to the 737 MAX grounding in March 2019 following two fatal crashes, CEO Tewolde Gebremariam told Reuters on Friday......»»

Category: topSource: reutersMay 15th, 2020

Brazil"s GOL sees 737 MAX flying by April, compensation talks ongoing

Brazilian low-cost carrier GOL, which has 130 of Boeing's grounded 737 MAX jets on order, expects to be flying the jet by April and hopes to secure a compensation deal within months, chief financial officer Richard Lark said on Monday......»»

Category: topSource: reutersJan 21st, 2020

Aeromexico reaches compensation deal with Boeing over MAX crisis

Mexican airline Aeromexico said on Monday it had reached a compensation deal with Boeing Co related to the grounding of the planemaker's 737 MAX aircraft, joining a growing list of global airlines settling with the U.S. company......»»

Category: topSource: reutersJan 6th, 2020

COP-Out? World"s Largest Polluter Won"t Attend Climate Summit, Kerry Pessimistic On Progress

COP-Out? World's Largest Polluter Won't Attend Climate Summit, Kerry Pessimistic On Progress Update: As if to confirm the shitshow we expected below, just two weeks before a crucial summit in Rome, Bloomberg reports that the world’s major economies are gridlocked in their efforts to agree concrete steps to tackle climate change. Preparatory talks between G-20 officials this week failed to end in an agreement to reduce coal subsidies and curb methane emissions. There wasn’t even a consensus on striving toward net-zero emissions and limiting global warming to 1.5 degrees from pre-industrial levels, according to three people familiar with the matter. China and India, two of the world’s biggest emitters and largest coal users, have failed to submit updated climate pledges. One person described the negotiating round as a disaster. Are they all suddenly realizing at once - amid the glorious FUBAR situation occurring in global energy markets - that their goals are a) infeasible, b) a giant waste of time and money without China's firm commitmentm and c) will create social unrest and lead to them losing their political power. *  *  * The imminent COP26 Climate Summit - heralded with the mighty goal of 2050 net-zero emissions - looks like being a giant nothing-burger (vegan of course). According to the study co-authored by a former Obama admin climate policy official, energy modelers and emissions experts (just go with it), China is now responsible for 27% of total global emissions - more than the combined total produced by the United States (11%), India (6.6%) and the 27 EU member nations together (6.4%). In fact, as we have noted previously, China's emissions exceed those of the United States and the rest of the developed world combined... In 2019, China’s emissions not only eclipsed that of the US—the world’s second-largest emitter at 11% of the global total—but also, for the first time, surpassed the emissions of all developed countries combined (Figure 2). When added together, GHG emissions from all members of the Organization for Economic Cooperation and Development (OECD), as well as all 27 EU member states, reached 14,057 MMt CO2e in 2019, about 36 MMt CO2e short of China’s total. -Rhodium Group So it makes you wonder just what can be achieved given that Chinese officials have informed G-20 envoys that Xi does not currently plan to attend a summit in Italy later this month in person, and diplomats have said that means he’s unlikely to go to COP26 either. Which is quite a change from his previous "commitment": "We must be committed to multilateralism," Xi has said in the recent past. "China looks forward to working with the international community, including the United States, to jointly advance global environmental governance." With China in the middle of a serious energy crisis that sees it ramping up its coal production to meet energy demand (sending Thermal Coal prices to the moon), we suspect Xi is missing the Glasgow trip to focus on putting "China first"... Finally, we note that even Bloomberg is admitting that in an interview with AP, US Climate Envoy John Kerry has already downplayed hopes of success, saying nations could fall short of a new agreement on more aggressive action on global warming. Specifically, he warned that two weeks of talks could end with countries still short of the emissions targets set by those pushing for more action on climate change. “We will hopefully be moving very close to that,” he was quoted as saying. “Though there will be a gap and … we’ve got to be honest about the gap, and we have to use the gap as further motivation to continue to accelerate as fast as we can.” Greta is going to be so mad at you!! Lauri Myllyvirta (lead analyst at @CREACleanAir) explains why in the following Twitter thread... If your theory of how we're going to limit global warming to 1.5 degrees was that Xi is going to fly to Glasgow, strike a deal with OECD countries where everyone commits to 1.5-degree compatible emissions pathways, and flies home, I have bad news for you. Continued growth in China's CO2 emissions until late in the decade is absolutely not acceptable, and that needs to be made clear to Chinese negotiators. But China was never going to "cave" and commit to an earlier peaking date in Glasgow than pledged by Xi. It will take a lot more pressure and coaxing and leverage than offering a photo-op in Glasgow to change the mind of Chinese decision-makers. And however much leverage you bring to bear, that's going to be one factor at most alongside domestic considerations. Also anyone decrying China not going substantially further needs to ask "were we prepared to go much further as a part of a deal" and/or "does our own current commitment rank much higher on the scale of fair and equitable effort than China's". I want the whole climate problem to be sorted at least as much as the next guy, but it's going to be a long slog. In the past year and a bit, we've had China, South Korea, Japan, EU, UK, US commit to carbon neutrality. That's not enough but it's progress. Consolidate that, get holdout countries to pledge something comparable, make clear that's not yet enough, call it a year. We look forward to hearing from Larry Fink and the rest of the China apologists to explain just how committed to ESG etc China is after this. Tyler Durden Fri, 10/15/2021 - 16:50.....»»

Category: smallbizSource: nyt13 hr. 20 min. ago

New airline ITA has officially taken over for Alitalia - see the full history of Italy"s troubled flag carrier

Alitalia has officially ceased operations and handed the baton to newcomer ITA, which stands for Italian Air Transport. ITA Airways Chairman Alfredo Altavilla poses with rendering of new livery ITA Press Office/Handout via REUTERS Government-owned Alitalia ceased operations on October 15, marking the end of its 74-year era. Alitalia has been replaced by ITA Airways, a brand new airline that will not be responsible for the old carrier's debt. ITA plans to buy 28 Airbus jets, create a new aircraft livery, and launch a new loyalty program. Alitalia has officially ceased operations and handed the baton to newcomer ITA Airways, which stands for Italian Air Transport.Italy's national carrier Alitalia has had a rocky past full of financial struggles, employee strikes, and other damaging events, forcing it to make the decision to cease operations on October 15 after 74 years of service. The airline stopped the sale of tickets in August and has committed to refunding all passengers who were booked on flights after October 14.On Thursday, the airline flew its final flight from Cagliari, Italy to Rome, according to FlightAware, officially sealing the fate of Alitalia. On Friday, the country's new flag carrier ITA took its place with a new livery, airplanes, and network, flying its first route from Milan Linate Airport to Bari International Airport in southern Italy.-João ☕ (@joaointhesky) October 14, 2021 Here's a look at Alitalia's storied past and the plan of its successor. Alitalia as a brand began in 1946, one year after World War II ended, first flying in 1947 within Italy and quickly expanding to other European countries and even opening intercontinental routes to South America. Passengers disembarking from an Alitalia Douglas DC-3 aircraft. Archivio Cameraphoto Epoche/Getty Source: Boeing and Alitalia The full name of the airline was Italian International Airlines, a joint effort between the United Kingdom through British European Airways - a precursor to British Airways - and the Italian government. A British European Airways Vickers Viscount. Museum of Flight/CORBIS/Corbis via Getty Source: Boeing and Alitalia True to its name, Alitalia flew its first with Italian aircraft produced by now-defunct manufacturers in aerospace including Fiat and Savoia-Marchetti. An Alitalia Fiat G-12. Touring Club Italiano/Marka/Universal Images Group via Getty Source: Boeing and Alitalia Following a merger with Italy's other airline, aptly named Italian Airlines or Linee Aeree Italiane, in 1957, Alitalia - Linee Aeree Italiane became Italy's top carrier. A Linee Aeree Italiane Douglas DC-3. Touring Club Italiano/Marka/Universal Images Group/Getty Source: Boeing and Alitalia Armed with a sizeable fleet of 37 aircraft including the four-engine Douglas DC-6 and Corvair 340, the airline was ranked 12 in the world for international carriers. Passengers disembarking an Alitalia aircraft. Touring Club Italiano/Marka/Universal Images Group via Getty Source: Boeing and Alitalia As Europe returned to normalcy following the war, so did Italy and the 1960s became a pivotal decade for both the country and its airline as the 1960 Summer Olympics would be held in Rome. An Alitalia poster highlighting the upcoming Olympic Games in Rome. David Pollack/Corbis via Getty Source: Boeing and Alitalia The year saw Alitalia carry over one million passengers, introduce jets into its fleet, and move to a new home at Rome's Fiumicino Airport. Rome's Leonardo da Vinci Fiumicino Airport in 1961. Carlo Bavagnoli/Mondadori via Getty Source: Boeing and Alitalia Alitalia entered the jet age with a mix of European and American aircraft such as the Sud Caravelle SE210… An Alitalia Sud Caravelle. Touring Club Italiano/Marka/Universal Images Group/Getty Source: Boeing and Alitalia And the Douglas DC-8. An Alitalia DC-8. Adams/Fairfax Media via Getty Source: Boeing and Alitalia American aircraft largely comprised the airline's fleet once settled into the jet age with a short-haul fleet featuring the McDonnell Douglas DC-9 and later the McDonnell Douglas MD-80... An Alitalia MD-80. Etienne DE MALGLAIVE/Gamma-Rapho/Getty Source: Boeing and Alitalia Complemented by a similarly American-dominated long-haul fleet consisting of aircraft such as the Boeing 747. An Alitalia Boeing 747 chartered by Pope John Paul II. Scott Peterson/Liaison/Getty Source: Boeing and Alitalia The arrival of the 747 was a seminal moment for Alitalia and it was the first aircraft to wear the airline's famed green, white, and red livery with an "A" shape on the tail. Alitalia's red and green "A" tail design. Etienne DE MALGLAIVE/Gamma-Rapho/Getty Source: Boeing and Alitalia Alitalia was the first European airline to transition fully into the jet age and continued the switch with more wide-body aircraft such as the Airbus A300. An Alitalia Airbus A300. aviation-images.com/Universal Images Group/Getty Source: Boeing and Alitalia Other aircraft that would join the Alitalia jet fleet included the McDonnell Douglas MD-11, McDonnell Douglas DC-10... An Alitalia McDonnell Douglas MD-11. Education Images/Universal Images Group/Getty Source: Boeing and Alitalia And Boeing 767-300ER for long-haul flights. An Alitalia Boeing 767-300ER. JOKER/Hady Khandani/ullstein bild/Getty Source: Boeing and Alitalia Alitalia even had uniforms designed by Georgio Armani, who also contributed to aircraft interior designs. Italian designer Georgio Armani. Vittoriano Rastelli/CORBIS/Corbis via Getty Source: Alitalia The airline's short-haul fleet later included a European favorite, the Airbus A320 family. An Alitalia Airbus A320 airplane approaches to land at Fiumicino airport in Rome Reuters Source: Boeing As Italy's national airline, Alitalia was also known for flying the Pope with the papal plane using the flight number AZ4000, better known as Shepherd One An Alitalia plane chartered by the Pope. AP Photo/Plinio Lepri Source: Telegraph Despite rising traffic throughout its history with Italy being a popular European tourist and leisure destination, the airline struggled with profitability. Alitalia check-in desks at Rome's Fiumicino Airport. ANDREAS SOLARO/AFP/Getty As a state-owned airline, Alitalia could always depend on the government to keep it flying, until the European Union stepped in and forbade financial support in 2006. An Alitalia Airbus A330. AP Photo/Riccardo De Luca Source: New York Times The 2000s then saw serious discussion into Alitalia's future with the Italian government wanting to sell its stake in the airline. The airline was opened for bidders in 2007 but yielded no results. A crow flying passed an Alitalia plane. AP Photo/Gregorio Borgia Source: New York Times Air France-KLM Group, the parent company of Air France and KLM as well as several smaller European airlines, then offered to buy the struggling airline but couldn't get labor unions on board and the deal collapsed. Alitalia and Air France-KLM Group signage. FILIPPO MONTEFORTE/AFP via Getty Source: Reuters The Italian government, not wanting to lose its flag carrier, continued to prop up its airline via emergency loans in violation of European Union rules. The European Commission in Brussels. Greg Sandoval/Business Insider Source: European Union The third attempt in two years to sell the airline came after the Air France-KLM Group deal collapsed with an investors group forming the Compagnia Aerea Italiana to purchase the airline, despite heavy pushback from labor unions. An Alitalia Boeing 777. VINCENZO PINTO/AFP/Getty Source: Reuters This Alitalia began operations in 2009, with Air France-KLM soon coming back into the picture taking a 25% stake from CAI. Alitalia meeting with Air France, Delta, and KLM executives. ALBERTO PIZZOLI/AFP via Getty Source: Financial Times The new airline quickly began differentiating itself from its former self, leasing aircraft instead of purchasing them with the fleet consisting of the Airbus A330 family… An Alitalia Airbus A330. Alberto Lingria/Reuters Source: FlightGlobal And Boeing 777 family comprising the airline's long-haul fleet. An Alitalia Boeing 777. Abner Teixeira/Getty Source: FlightGlobal It wasn't long before Alitalia was plagued with issues ranging from union strikes to underperforming subsidiaries and even a sting operation that saw Alitalia employees arrested for theft, according to contemporaneous news reports. Alitalia workers protesting at Fiumicino Airport. AP Photo/Alessandra Tarantino Source: New York Times and BBC With bankruptcy looming in 2013, Alitalia secured another bailout with help from the government that highlighted the need for restructuring. An Alitalia Airbus A320. AP Photo/Antonio Calanni Source: New York Times Alitalia saw a new investor in 2015, Eithad Airways, which would take a 49% stake in the airline and Alitalia - Compagnia Aerea Italiana became Alitalia - Societa Aerea Italiana. Alitalia and Etihad celebrating a new partnership. AP Photo/Antonio Calanni Source: Alitalia With a new investor in tow, Alitalia began cost-cutting measures but facing a backlash from employees due to planned job cuts, the airline began bankruptcy proceedings and the government announced Alitalia would be auctioned. Alitalia and Etihad's merger livery. AP Photo/Antonio Calanni Source: Reuters Meanwhile, another airline was positioning itself to become the new Italian flag carrier, the aptly named Air Italy. An Air Italy Airbus A330-200. Air Italy Rebranded from Meridiana, a regional Italian airline, Air Italy was jointly owned by private company Alisarda and Qatar Airways. A Qatar Airways Boeing 777-200LR. Thomas Pallini/Business Insider The airline chose Milan as its main hub ceding Rome to Alitalia. Long-haul flights from Milan to New York began in June 2018, with expansion to Asia happening soon after. Air Italy's inaugural ceremony for Milan-New York flights. David Slotnick/Business Insider Affected by the grounding of the Boeing 737 Max and without the Italian government as a benefactor, Air Italy closed up shop in early 2020, giving back full control of Italy to Alitalia. An Alitalia Airbus A320. ALBERTO PIZZOLI/AFP/Getty While Air Italy was getting its start, the Italian government would once again seek outside investors with European, North American, and Asian airlines expressing interest in Alitalia. Alitalia aircraft in Italy. Alberto Lingria/Reuters Among those interested were UK low-cost carrier EasyJet... EasyJet airplanes are pictured at Tegel airport in Berlin. Reuters Source: Bloomberg Irish low-cost carrier Ryanair… A Ryanair commercial passenger jet takes off in Blagnac near Toulouse. Reuters Source: The Guardian The Lufthansa Group… Strike of Germany's cabin crew union UFO at Frankfurt airport. Reuters Source: CNBC Delta Air Lines… A Delta Air Lines Boeing 777-200. James D. Morgan/Getty Source: Bloomberg And China Eastern Airlines… A China Eastern Airlines Airbus A320. REUTERS/Jon Woo Source: Reuters As well as Italian railway group Ferrovie dello Stato Italiane. A Ferrovie dello Stato Italiane train. TIZIANA FABI/AFP via Getty Source: Reuters One after the other, the airlines dropped their interest, and ultimately, the Italian government re-nationalized the airline on March 17 during the coronavirus pandemic. Alitalia was re-nationalized amid the coronavirus pandemic. Budrul Chukrut/SOPA Images/LightRocket/Getty Source: Reuters  Despite bailouts from the state, the pandemic and subsequent lockdown of Italy took the ultimate toll on Alitalia, forcing it to make the decision to close the airline and launch a new one. Alitalia aircraft at the Frankfurt airport Vytautas Kielaitis/Shutterstock Source: The Local On August 25, the airline stopped selling tickets and announced on its website that it would be offering free flight changes or refunds for passengers booked on Alitalia flights after October 14. People at Alitalia check in counter TK Kurikawa/Shutterstock Source: The Local When the airline ceased operations, its successor, Italia Transporto Aereo, took its place. Alitalia's last flight flew from Cagliari, Italy to Rome on October 14, and ITA launched operations with a flight from Milan to Bari, Italy on October 15. ITA app and logo rarrarorro/Shutterstock Source: AeroTime Talks between the European Commission and Italy over Alitalia and ITA began in March 2021, with Rome designating 3 billion euros ($3.6 billion) to establish the new flag carrier. ITA signage at Catania airport rarrarorro/Shutterstock Source: Reuters Initially, ITA was slated to begin operations in April 2021, but lengthy discussions between Italy and the European Commission delayed its launch. Flags outside European Commission building in Brussels VanderWolf Images/Shutterstock Source: Reuters Part of the negotiations focused on confirming ITA's independence of Alitalia to ensure it did not inherit the billions of debt the old carrier owed to the state. Alitalia Airbus A319 Wirestock Creators/Shutterstock Source: Reuters Talks also included asking ITA to forfeit half of Alitalia's slots at Milan Linate Airport, which the airline was unwilling to do. Alitalia aircraft sit at Milan Linate airport Gabriele Maltinti/Shutterstock Source: Reuters ITA determined giving up that many slots at Linarte would be too big of a loss and proposed forfeiting slots at Rome Fiumicino Airport as a compromise. Alitalia check in counter Leonardo da Vinci Fiumicino airport TK Kurikawa/Shutterstock Source: Reuters At the end of the discussions, negotiators agreed to allow ITA to keep 85% of slots at Linate and 43% at Fiumicino. Green ribbon barrier with the ITA airline logo inside the Leonardo da Vinci airport rarrarorro/Shutterstock Source: Reuters Also under negotiation was Alitalia's brand and its loyalty program, MilleMiglia. The European Commission said ITA would have to give up both. Alitalia Airbus A320 Yaya Photos/Shutterstock Source: Reuters Under European Commission rules, MilleMiglia cannot be bought by ITA and must be put out for public tender, meaning another airline or entity outside the aviation industry can purchase the program. There are an estimated five million MilleMiglia miles that customers have not been able to use. Customer checking into an Alitalia flight Sorbis/Shutterstock Source: EuroNews However, ITA was able to bid on Alitalia's brand, which it did the day before its launch. The airline bought the Alitalia name for €90 million ($104 million), though ITA executives say they don't plan on replacing the ITA name. Alitalia aircraft Light Orancio/Shutterstock Source: Reuters ITA began operations on October 15, the day after Alitalia's last flight. The new airline secured €700 million ($830 million) in funding earlier this year, which helped it purchase some of Alitalia's assets. Alitalia employees with new livery in 2015 Simone Previdi/Shutterstock Source: Reuters The successor acquired 52 of Alitalia's aircraft, seven being wide-bodies, and has plans to purchase and lease new ones, the first of which will enter the fleet in early 2022. Alitalia Boeing 777 Deni Williams/Shutterstock Source: Reuters By 2025, the airline expects to have 105 aircraft in its fleet and earn over 3.3 billion euros in revenue. ITA logo with Alitalia aircraft Yaya Photos/Shutterstock Source: Reuters, Airways Magazine Moreover, ITA plans to renew its fleet with next-generation aircraft, which is expected to make up 77% of its fleet in four years. According to ITA, the aircraft will reduce CO2 emissions by 750 thousand pounds from 2021 to 2025. Milan Linate Airport Alexandre Rotenberg/Shutterstock Source: Airways Magazine, ITA Airways The 31 new-generation planes, which include short, medium, and long-haul aircraft, will be leased by Air Lease Corporation. Airbus A320neo Airbus Source: Airways Magazine Meanwhile, 28 new Airbus jets, including ten Airbus A330neos, seven Airbus A220 family aircraft, and 11 Airbus A320neo family jets, will be purchased. Airbus A220 Airbus Source: Airways Magazine As part of a carbon-reducing project, the first 10 flights to depart Rome on October 15 will use sustainable aviation fuels made by Italian energy company Eni. The project will contribute to the EU's "Fit for 55" proposal, which strives to reduce carbon emissions by at least 55% by 2030. Eni headquarters in Rome MyVideoimage.com/Shutterstock Source: Airways Magazine ITA introduced a new livery on launch day, which includes a light blue paint scheme representing unity, cohesion, and pride of the nation, as well as homage to Italy's national sports team, which wears sky blue during competitions. On the tail will be the Italian tricolor of red, white, and green. ITA Airways Chairman Alfredo Altavilla poses with rendering of new livery ITA Press Office/Handout via REUTERS Source: Airways Magazine In regards to its network, the carrier launched with 59 routes to 44 destinations. ITA plans to increase its routes to 74 in 2022 and 89 by 2025, while destinations are expected to increase to 58 in 2022 and 74 by 2025. ITA logo ITA Airways Source: Airways Magazine ITA will focus its operation out of Rome's Leonardo da Vinci International Airport and Milan Linate Airport, establishing itself as a "reference airline" for both business and leisure travelers. bellena/Shutterstock.com Source: Airways Magazine The carrier also plans to target the North American market, with flights from Rome to New York launching on November 4. Joey Hadden/Insider Source: CNN As for the over 11,000 Alitalia workers, 70% were hired to work for ITA, which has 2,800 employees. 30% of that came from outside Alitalia. The company plans to add 1,000 new jobs in 2022 and reach 5,750 employees by 2025. Alitalia staff at Milan Linate Sorbis/Shutterstock Source: Reuters, Airways Magazine ITA plans to improve upon Alitalia's services, including incentivizing good customer service by attaching employee salary with customer satisfaction. Alitalia staff Sorbis/Shutterstock Source: CNN ITA has set up a loyalty program called Volare, effective October 15, which is split into four levels: smart, plus, premium, and executive. Customers can use accrued points for any flight in ITA's system. ITA app rarrarorro/Shutterstock Source: Airways Magazine According to ITA executives, the company plans to join a major international alliance, though it has not stated which one it prefers. Alitalia was aligned with the SkyTeam alliance, which is comprised of carriers like Delta, Air France, and KLM. Alitalia Embraer 190LR SkyTeam livery InsectWorld/Shutterstock Source: CNN, Reuters However, ITA chairman Alfredo Altavilla said it was open to all options. "ITA can't be a stand-alone carrier forever," he said. Alitalia Boeing 767 SkyTeam livery Eliyahu Yosef Parypa/Shutterstock Source: Reuters While it is the end of an era with the closing of Alitalia, there are high hopes for its successor. "ITA Airways has been created to intercept the recovery of air traffic in the coming years on the strength of the foundations of its strategy: sustainability, digitalization, customer focus, and innovations," said ITA CEO Fabio Lazzerini. Alitalia plane with ITA logo Yaya Photos/Shutterstock Source: Airways Magazine Read the original article on Business Insider.....»»

Category: personnelSource: nyt13 hr. 36 min. ago

Delta announced 3 new routes to Panama in its latest network expansion

Delta Air Lines is focusing on Panama City, Panama in its latest network expansion, announcing three all-new nonstop routes to the Central American country. Touring Delta Air Lines' new terminal at LaGuardia Airport. Thomas Pallini/Insider Delta Air Lines is launching three new routes and one additional frequency to Panama City, Panama this winter. The expansion will mark Delta's highest number of flights to the country since it started service there in 1998. Delta's flight from Orlando will be the carrier's only international route out of the central Florida city. Delta Air Lines is focusing on Panama City, Panama in its latest network expansion, announcing three all-new nonstop routes to the Central American country on Friday.Delta is launching three new routes to Panama City in December from Los Angeles, Orlando, and New York, expanding its operation in the country to 13 weekly flights, which is an 80% increase in capacity since 2019, according to the airline. In addition to new routes, the airline is also adding a second Saturday-only frequency from its hub in Atlanta, set to begin on December 18. According to Delta, this winter will mark the highest number of flights to Panama since beginning service there in 1998. "From its breathtaking beaches and vibrant culture to its competitive economy in Latin America, Panama is a highly sought destination for business and leisure travelers alike," said Luciano Macagno, Delta's managing director - Latin America, Caribbean, and South Florida. "With our new direct flights from our L.A. and JFK hubs that offer significant U.S. connectivity, as well as the demand from the local Orlando community, we're looking forward to introducing Delta's signature hospitality and exceptional onboard experience to more customers planning their next trip."The launch of these routes indicates Delta sees strong business and leisure demand to the country, which has had a good recovery since the pandemic. According to Cirium data for October, airlines are operating 83% of the flights offered to Panama during the same time in 2019. Tourism in Panama spiked over the summer, with over 50,000 visitors in June 2021, according to CEIC data, compared to the 30,000 in May. However, this is still well below 2019 levels which saw over 120,000 tourists.Delta will face strong competition from Panama's national carrier Copa Airlines, which has its "Hub of the Americas" in Panama City. Last month, the airline joined the government in promoting tourism in the country, including launching its "Panama Stopover" and "Panama Irresistible" programs, according to Spanish aviation media outlet Aviaci Online.The stopover initiative, which was done with the support of the Tourism Promotion Fund, known as PROMTUR, offers travelers the option to add a multi-day stop in Panama City to their reservation at no additional cost."One of the main objectives of PROMTUR Panama is to generate demand for international travelers through strategic alliances, and programs such as the Panama Stopover, align our efforts to position the country as a tourist destination in an attractive way for the thousands of tourists who travel through Copa Airlines," said PROMTUR's general director Fernando Fondevila.Meanwhile, the company's "Panama Irresistible" program offers discounts to Panama from dozens of cities in its network, including Los Angeles and Orlando, according to Aviaci Online.Here's a closer look at Delta's new routes to Panama.Between Orlando and Panama City, Panama Orlando, Florida John Greim/Loop Images/Universal Images Group via Getty Images Delta will launch Saturday-only flights between Orlando and Panama City on December 18 using a Boeing 737-900 aircraft, which can carry 180 passengers. The outbound will depart Orlando at 10:30 a.m. and land in Panama City at 1:50 p.m., with the return leaving at 3:20 p.m. and arriving at 6:40 p.m. The route will be the airline's only international flight out of Orlando and will face competition from Copa Airlines.Between Los Angeles and Panama City, Panama Los Angeles, California Getty Images/TheCrimsonRibbon Delta will launch once-daily flights between Los Angeles and Panama City on December 18 using a Boeing 757 aircraft, which can carry 199 passengers. The outbound flight will operate on Saturdays and depart Los Angeles at 8:50 p.m. and land in Panama City at 5:45 a.m. the next day. The return will operate on Sundays and leave at 8:05 a.m. and arrive at 11:15 a.m. Delta will compete with Copa Airlines on the route.Between New York's JFK International Airport and Panama City, Panama New York City, New York Joey Hadden/Insider Delta will launch thrice-weekly flights on Mondays, Wednesdays, and Fridays between New York-JFK and Panama City on December 20 using a Boeing 737-800 aircraft, which can carry 160 passengers. Frequencies will increase to four times weekly on Sundays, Mondays, Wednesdays, and Fridays in March 2022. The outbound will depart New York in the morning and the return will leave Panama City in the afternoon. Copa Airlines will be Delta's only competitor.Read the original article on Business Insider.....»»

Category: personnelSource: nyt13 hr. 36 min. ago

Futures Surge As Banks Report Stellar Earnings; PPI On Deck

Futures Surge As Banks Report Stellar Earnings; PPI On Deck US equity futures, already sharply higher overnight, jumped this morning as a risk-on mood inspired by stellar bank earnings, overshadowed concern that supply snarls. a China property crunch, a tapering Fed and stagflation will weigh on the global recovery. Nasdaq futures jumped 1%, just ahead of the S&P 500 which was up 0.9%. 10-year Treasury yields ticked lower to about 1.5%, and with the dollar lower as well, oil jumped. Bitcoin and the broader crypto space continued to rise. Shares in Morgan Stanley, Citi and Bank of America jumped as their deal-making units rode a record wave of M&A. On the other end, Boeing shares fell more than 1% after a Dow Jones report said the plane maker is dealing with a new defect on its 787 Dreamliner. Here are some of the biggest other U.S. movers today: Occidental (OXY US) rises 1.6% in U.S. premarket trading after it agreed to sell its interests in two Ghana offshore fields for $750m to Kosmos Energy and Ghana National Petroleum Plug Power (PLUG US) rises 3.3% premarket, extending gains from Wednesday, when it announced partnership with Airbus SE and Phillips 66 to find ways to harness hydrogen to power airplanes, vehicles and industry Esports Entertainment (GMBL US) shares rise 16% in U.S. premarket trading after the online gambling company reported its FY21 results and reaffirmed its FY22 guidance Perrigo  (PRGO US) gains 2.8% in premarket trading after Raymond James upgrades to outperform following acquisition of HRA Pharma and recent settlement of Irish tax dispute AT&T (T US) ticks higher in premarket trading after KeyBanc writes upgrades to sector weight from underweight, saying it seems harder to justify further downside from here Avis Budget (CAR US) may be active after getting its only negative rating among analysts as Morgan Stanley cuts to underweight with risk/reward seen pointing toward downside OrthoPediatrics (KIDS US) dipped 2% Wednesday postmarket after it said 3Q revenue was hurt by the surge in cases of Covid-19 delta variant and RSV within children’s hospitals combined with staff shortage Investors continue to evaluate the resilience of economic reopening to supply chain disruptions, a jump in energy prices and the prospect of reduced central bank support. In the earnings season so far, executives at S&P 500 companies mentioned the phrase “supply chain” about 3,000 times on investor calls as of Tuesday -- far higher than last year’s then-record figure. “Our constructive outlook for growth means that our asset allocation remains broadly pro-risk and we continue to be modestly overweight global equities,” according to Michael Grady, head of investment strategy and chief economist at Aviva Investors. “However, we have scaled back that position marginally because of growing pains which could impact sales and margins.” Europe's Stoxx 600 index reached its highest level in almost three weeks, boosted by gains in tech shares and miners. The Euro Stoxx 50 rose over 1% to best levels for the week. FTSE 100 rises 0.75%, underperforming at the margin. Miners and tech names are the strongest sectors with only healthcare stocks in small negative territory. Here are some of the biggest European movers today: THG shares advance as much as 10%, snapping a four-day losing streak, after a non-executive director bought stock while analysts at Goldman Sachs and Liberum defended their buy recommendations. Steico gains as much as 9.9%, the most since Jan., after the insulation manufacturer reported record quarterly revenue, which Warburg says “leaves no doubt” about underlying market momentum. Banco BPM climbs as much as 3.6% and is the day’s best performer on the FTSE MIB benchmark index; bank initiated at buy at Jefferies as broker says opportunity to internalize insurance business offers 9%-16% possible upside to 2023 consensus EPS and is not priced in by the market. Hays rises as much as 4.3% after the recruiter posted a jump in comparable net fees for the first quarter. Publicis jumps as much as 3.7%, the stock’s best day since July, with JPMorgan saying the advertising company’s results show a “strong” third quarter, though there are risks ahead. Kesko shares rise as much as 6.1%. The timing of this year’s third guidance upgrade was a surprise, Inderes says. Ubisoft shares fall as much as 5.5% after JPMorgan Cazenove (overweight) opened a negative catalyst watch, citing short-term downside risk to earnings ahead of results. Earlier in the session, Asian stocks advanced, boosted by a rebound in technology shares as traders focused on the ongoing earnings season and assessed economic-reopening prospects in the region. The MSCI Asia Pacific Index gained as much as 0.7%, as a sub-gauge of tech stocks rose, halting a three-day slide. Tokyo Electron contributed the most to the measure’s climb, while Taiwan Semiconductor Manufacturing Co. closed up 0.4% ahead of its earnings release. India’s tech stocks rose following better-than-expected earnings for three leading firms in the sector. Philippine stocks were among Asia’s best performers as Manila began easing virus restrictions, which will allow more businesses in the capital to reopen this weekend. Indonesia’s stock benchmark rallied for a third-straight day, as the government prepared to reopen Bali to tourists. READ: Commodities Boom, Tourism Hopes Fuel Southeast Asia Stock Rally Ilya Spivak, head of Greater Asia at DailyFX, said FOMC minutes released overnight provided Asian markets with little direction, which may offer some opportunity for recouping recent losses. The report showed officials broadly agreed last month they should start reducing pandemic-era stimulus in mid-November or mid-December. U.S. 10-year Treasury yields stayed below 1.6%, providing support for tech stocks.  “Markets seemed to conclude the near-term narrative is on pause until further evidence,” Spivak said. Shares in mainland China fell as the country reported factory-gate prices grew at the fastest pace in almost 26 years in September. Singapore’s stock benchmark pared initial losses as the country’s central bank unexpectedly tightened policy. Hong Kong’s equity market was closed for a holiday In rates, Treasuries were steady to a tad higher, underperforming Bunds which advanced, led by the long end.  Fixed income is mixed: gilts bull steepen with short dates richening ~2.5bps, offering only a muted reaction to dovish commentary from BOE’s Tenreyro. Bunds rise with 10y futures breaching 169. USTs are relatively quiet with 5s30s unable to crack 100bps to the upside. Peripheral spreads widen slightly. In FX, the Turkish lira was again the overnight standout as it weakened to a record low after President Recep Tayyip Erdogan fired three central bankers. The Bloomberg Dollar Spot Index fell and the greenback slipped against all of its Group-of-10 peers apart from the yen, with risk-sensitive and resource-based currencies leading gains; the euro rose to trade above $1.16 for the first time in a week.  The pound rose to more than a two-week high amid dollar weakness as traders wait for a raft of Bank of England policy makers to speak. Sweden’s krona temporarily came off an almost eight-month high against the euro after inflation fell short of estimates. The euro dropped to the lowest since November against the Swiss franc as banks targeted large option barriers and leveraged sell-stops under 1.0700, traders said; Currency traders are responding to stagflation risks by turning to the Swiss franc. The Aussie advanced to a five-week high versus the greenback even as a monthly jobs report showed employment fell in September; the jobless rate rose less than economists forecast. The kiwi was a among the top performers; RBNZ Deputy Governor Geoff Bascand said inflation pressures were becoming more persistent China’s yuan declined from a four-month high after the central bank signaled discomfort with recent gains by setting a weaker-than-expected reference rate. In commodities, crude futures extend Asia’s gains with WTI up ~$1 before stalling near $81.50. Brent regains a $84-handle. Spot gold drifts through Wednesday’s highs, adding $4 to print just shy of the $1,800/oz mark. Base metals are well bid with LME copper and aluminum gaining as much as 3%.  Looking at the day ahead, we’ve got central bank speakers including the Fed’s Bullard, Bostic, Barkin, Daly and Harker, the ECB’s Elderson and Knot, along with the BoE’s Deputy Governor Cunliffe, Tenreyro and Mann. Data releases from the US include the September PPI reading along with the weekly initial jobless claims. Lastly, earnings releases will include UnitedHealth, Bank of America, Wells Fargo, Morgan Stanley, Citigroup, US Bancorp and Walgreens Boots Alliance. Market Snapshot S&P 500 futures up 0.6% to 4,382.50 STOXX Europe 600 up 0.9% to 464.38 MXAP up 0.7% to 196.12 MXAPJ up 0.6% to 642.66 Nikkei up 1.5% to 28,550.93 Topix up 0.7% to 1,986.97 Hang Seng Index down 1.4% to 24,962.59 Shanghai Composite little changed at 3,558.28 Sensex up 0.7% to 61,190.63 Australia S&P/ASX 200 up 0.5% to 7,311.73 Kospi up 1.5% to 2,988.64 Brent Futures up 1.0% to $83.98/bbl Gold spot up 0.2% to $1,796.13 U.S. Dollar Index down 0.25% to 93.84 German 10Y yield fell 1.5 bps to -0.143% Euro little changed at $1.1615 Brent Futures up 1.0% to $84.13/bbl Top Overnight News from Bloomberg A flattening Treasury yield curve signals increasing concern Federal Reserve efforts to keep inflation in check will derail the recovery in the world’s largest economy China’s factory-gate prices grew at the fastest pace in almost 26 years in September, potentially adding to global inflation pressure if local businesses start passing on higher costs to consumers. Turkish President Recep Tayyip Erdogan fired monetary policy makers wary of cutting interest rates further, driving the lira to record lows against the dollar with his midnight decree Singapore’s central bank unexpectedly tightened its monetary policy settings, strengthening the local dollar, as the city-state joins policymakers globally concerned about risks of persistent inflation Shortages of natural gas in Europe and Asia are boosting demand for oil, deepening what was already a sizable supply deficit in crude markets, the International Energy Agency said A tropical storm that’s lashing southern China mixed with Covid-related supply chain snarls is causing a ship backlog from Shenzhen to Singapore, intensifying fears retail shelves may look rather empty come Christmas A more detailed look at global markets courtesy of Newsquawk A constructive mood was seen across Asia-Pac stocks with the region building on the mild positive bias stateside where the Nasdaq outperformed as tech and growth stocks benefitted from the curve flattening, with global risk appetite unfazed by the firmer US CPI data and FOMC Minutes that suggested the start of tapering in either mid-November of mid-December. The ASX 200 (+0.5%) traded higher as tech stocks found inspiration from the outperformance of US counterparts and with the mining sector buoyed by gains in underlying commodity prices. The Nikkei 225 (+1.5%) was the biggest gainer amid currency-related tailwinds and with the latest securities flow data showing a substantial shift by foreign investors to net purchases of Japanese stocks during the prior week. The KOSPI (+1.5%) conformed to the brightening picture amid signs of a slowdown in weekly infections, while the Singapore’s Straits Times Index (+0.3%) lagged for most of the session following weaker than expected Q3 GDP data, and after the MAS surprisingly tightened its FX-based policy by slightly raising the slope of the SGD nominal effective exchange rate (NEER). The Shanghai Comp. (U/C) was initially kept afloat but with gains capped after slightly softer than expected loans and financing data from China and with participants digesting mixed inflation numbers in which CPI printed below estimates but PPI topped forecasts for a record increase in factory gate prices, while there was also an absence of Stock Connect flows with participants in Hong Kong away for holiday. Finally, 10yr JGBs were higher after the recent curve flattening stateside and rebound in T-notes with the US longer-end also helped by a solid 30yr auction, although gains for JGBs were capped amid the outperformance in Tokyo stocks and mostly weaker metrics at the 5yr JGB auction. Top Asian News Chinese Developer Shares Fall on Debt Crisis: Evergrande Update Japan’s Yamagiwa Says Abenomics Fell Short at Spreading Wealth China Seen Rolling Over Policy Loans to Keep Liquidity Abundant Malaysia’s 2020 Fertility Rate Falls to Lowest in Four Decades Bourses in Europe have modestly extended on the upside seen at the European cash open (Euro Stoxx 50 +1.1%; Stoxx 600 +0.9%) in a continuation of the firm sentiment experienced overnight. US equity futures have also conformed to the broader upbeat tone, with gains seen across the ES (+0.7%), NQ (+0.8%), RTY (+0.8%) and YM (+0.7%). The upside comes despite a lack of overly pertinent newsflow, with participants looking ahead to a plethora of central bank speakers. The major indices in Europe also see a broad-based performance, but the periphery narrowly outperforms, whilst the SMI (Unch) lags amid the sectorial underperformance seen in Healthcare. Overall, the sectors portray somewhat of a cyclical tilt. The Basic Resources sector is the clear winner and is closely followed by Tech and Financial Services. Individual moves are scarce as price action is largely dictated by the macro picture, but the tech sector is led higher by gains in chip names after the world's largest contract chipmaker TSMC (+3.1% pre-market) reported strong earnings and upgraded its revenue guidance. Top European News German 2021 Economic Growth Forecast Slashed on Supply Crunch U.K. Gas Shipper Stops Supplies in Another Blow to Power Firms Christmas Toy Shortages Loom as Cargo Clogs a Major U.K. Port Putin Is Back to Building Financial Fortress as Reserves Grow In FX, the Dollar and index by default have retreated further from Tuesday’s 2021 peak for the latter as US Treasury yields continue to soften and the curve realign in wake of yesterday’s broadly in line CPI data and FOMC minutes that set the schedule for tapering, but maintained a clear differential between scaling down the pace of asset purchases and the timing of rate normalisation. Hence, the Buck is losing bullish momentum with the DXY now eying bids and downside technical support under 94.000 having slipped beneath an early October low (93.804 from the 5th of the month vs 93.675 a day earlier) and the 21 DMA that comes in at 93.770 today between 94.090-93.754 parameters before the next IJC update, PPI data and a heavy slate of Fed speakers. NZD/AUD - No real surprise that the Kiwi has been given a new lease of life given that the RBNZ has already taken its first tightening step and put physical distance between the OCR and the US FFR, not to mention that the move sparked a major ‘sell fact’ after ‘buy rumour’ reaction. However, Nzd/Usd is back on the 0.7000 handle with additional impetus via favourable tailwinds down under as the Aud/Nzd cross is now nearer 1.0550 than 1.0600 even though the Aussie is also taking advantage of the Greenback’s fall from grace to reclaim 0.7400+ status. Note, Aud/Usd may be lagging somewhat on the back of a somewhat labour report overnight as the employment tally fell slightly short of expectations and participation dipped, but the jobless rate fell and full time jobs rose. Moreover, RBA Deputy Governor Debelle repeated that circumstances are different for Australia compared to countries where policy is tightening, adding that employment is positive overall, but there is not much improvement on the wage front. CAD/GBP/CHF - The next best majors in terms of reclaiming losses vs their US counterpart, with the Loonie also encouraged by a firm bounce in oil prices and other commodities in keeping with a general recovery in risk appetite. Usd/Cad is under 1.2400, while Cable is now over 1.3700 having clearly breached Fib resistance around 1.3663 and the Franc is probing 0.9200 for a big figure-plus turnaround from recent lows irrespective of mixed Swiss import and producer prices. EUR/JPY - Relative laggards, but the Euro has finally hurdled chart obstacles standing in the way of 1.1600 and gradually gathering impetus to pull away from decent option expiry interest at the round number and just above (1.5 bn and 1 bn 1.1610-20), and the Yen regrouping around the 113.50 axis regardless of dovish BoJ rhetoric. In short, board member Noguchi conceded that the Bank may have little choice but to extend pandemic relief support unless it becomes clear that the economy has returned to a pre-pandemic state, adding that more easing may be necessary if the jobs market does not improve from pent-up demand, though he doesn't see and immediate need to top up stimulus or big stagflation risk. In commodities, WTI and Brent front month futures are continuing the grind higher seen since the European close yesterday as the risk tone remains supportive and in the aftermath of an overall bullish IEA oil market report. The IEA upgraded its 2021 and 2022 oil demand forecasts by 170k and 210k BPD respectively, which contrasts the EIA STEO and the OPEC MOMR – with the former upping its 2021 but cutting 2022 forecast, whilst the OPEC MOMR saw the 2021 demand forecast cut and 2022 was maintained. The IEA report however noted that the ongoing energy crisis could boost oil demand by 500k BPD, and oil demand could exceed pre-pandemic levels in 2022. On this, China has asked Russia to double electricity supply between November-December. The morning saw commentary from various energy ministers, but perhaps the most telling from the Russian Deputy PM Novak who suggested Russia will produce 9.9mln BPD of oil in October (in-line with the quota), but that Russia has no problem in increasing oil output which can go to 11.3mln BPD (Russia’s capacity) and even more than that, but output will depend on market situation. Long story short, Russia can ramp up output but is currently caged by the OPEC+ pact. WTI Nov extended on gain about USD 81/bbl to a current high of USD 81.41/bbl (vs 80.41/bbl low) while its Brent counter topped USD 84.00/bbl to a USD 84.24/bbl high (vs 83.18/bbl low). As a reminder, the weekly DoEs will be released at 16:00BST/11:00EDT on account of the Columbus Day holiday. Gas prices have also moved higher in intraday, with the UK Nat Gas future +5.5% at the time of writing. Returning to the Russian Deputy PM Novak who noted that Nord Stream 2 will be ready for work in the next few days, still expects certification to occur and commercial supplies of gas via Nord Stream 2 could start following certification. Elsewhere, spot gold and silver have been drifting higher as the Buck wanes, with spot gold topping its 200 DMA (1,7995/oz) and in striking distance of its 100 DMA (1,799/oz) ahead of the USD 1,800/oz mark. Over to base metals, LME copper is again on a firmer footing, owing to the overall constructive tone across the market. Dalian iron ore meanwhile fell for a second straight day in a continuation of the downside seen as Beijing imposed tougher steel output controls for winter. World Steel Association also cut its global steel demand forecast to +4.5% in 2021 (prev. forecast +5.8%); +2.2% in 2022 (prev. forecast 2.7%). US Event Calendar 8:30am: Sept. PPI Final Demand MoM, est. 0.6%, prior 0.7%; YoY, est. 8.6%, prior 8.3% 8:30am: Sept. PPI Ex Food and Energy MoM, est. 0.5%, prior 0.6%; YoY, est. 7.1%, prior 6.7% 8:30am: Sept. PPI Ex Food, Energy, Trade MoM, est. 0.4%, prior 0.3%; YoY, est. 6.5%, prior 6.3% 8:30am: Oct. Initial Jobless Claims, est. 320,000, prior 326,000; Continuing Claims, est. 2.67m, prior 2.71m 9:45am: Oct. Langer Consumer Comfort, prior 53.4 Central Banks 8:35am: Fed’s Bullard Takes Part in Virtual Discussion 9:45am: Fed’s Bostic Takes Part in Panel on Inclusive Growth 12pm: New York Fed’s Logan Gives Speech on Policy Implementation 1pm: Fed’s Barkin Gives Speech 1pm: Fed’s Daly Speaks at Conference on Small Business Credit 6pm: Fed’s Harker Discusses the Economic Outlook DB's Jim Reid concludes the overnight wrap Inflation dominated the conversation yet again for markets yesterday, after another upside surprise from the US CPI data led to the increasing realisation that we’ll still be talking about the topic for some time yet. Equities were pretty subdued as they looked forward to the upcoming earnings season, but investor jitters were evident as the classic inflation hedge of gold (+1.87%) posted its strongest daily performance since March, whilst the US dollar (-0.46%) ended the session as the worst performer among the G10 currencies. Running through the details of that release, headline US consumer prices were up by +0.4% on a monthly basis in September (vs. +0.3% expected), marking the 5th time in the last 7 months that the figure has come in above the median estimate on Bloomberg, though core prices were in line with consensus at +0.2% month-over-month. There were a number of drivers behind the faster pace, but food inflation (+0.93%) saw its biggest monthly increase since April 2020. Whilst some pandemic-sensitive sectors registered soft readings, housing-related prices were much firmer. Rent of primary residence grew +0.45%, its fastest pace since May 2001 and owners’ equivalent rent increased +0.43%, its strongest since June 2006. These housing gauges are something that Fed officials have signposted as having the potential to provide more durable upward pressure on inflation. The CPI release only added to speculation that the Fed would be forced to hike rates earlier than previously anticipated, and investors are now pricing in almost 4 hikes by the end of 2023, which is over a full hike more than they were pricing in just a month earlier. In response, the Treasury yield curve continued the previous day’s flattening, with the prospect of tighter monetary policy seeing the 2yr yield up +2.0bps to a post-pandemic high of 0.358%, whilst the 10yr decreased -4.0bps to 1.537%. That move lower in the 10yr yield was entirely down to lower real rates, however, which were down -7.4bps, suggesting investors were increasingly concerned about long-term growth prospects, whereas the 10yr inflation breakeven was up +3.3bps to 2.525%, its highest level since May. Meanwhile in Europe, 10yr sovereign bond yields took a turn lower alongside Treasuries, with those on bunds (-4.2bps), OATs (-4.0bps) and BTPs (-2.3bps) all falling. Recent inflation dynamics and issues on the supply-side are something that politicians have become increasingly attuned to, and President Biden gave remarks last night where he outlined efforts to address the supply-chain bottlenecks. This followed headlines earlier in the session that major ports in southern California would move to a 24/7 schedule to unclog delivery backlogs, and Mr. Biden also used the opportunity to push for the passage of the infrastructure plan. That comes as it’s also been reported by Reuters that the White House has been speaking with US oil and gas producers to see how prices can be brought lower. We should hear from Mr. Biden again today, who’s due to give an update on the Covid-19 response. On the topic of institutions that care about inflation, the September FOMC minutes suggested staff still remained optimistic that inflationary pressures would prove transitory, although Committee members themselves were predictably more split on the matter. Several participants pointed out that pandemic-sensitive prices were driving most of the gains, while some expressed concerns that high rates of inflation would feed into longer-term inflation expectations. Otherwise, the minutes all but confirmed DB’s US economists’ call for a November taper announcement, with monthly reductions in the pace of asset purchases of $10 billion for Treasuries and $5 billion for MBS. Markets took the news in their stride immediately following the release, reflecting how the build-up to this move has been gradually telegraphed through the year. Turning to equities, the S&P 500 managed to end its 3-day losing streak, gaining +0.30% by the close. Megacap technology stocks led the way, with the FANG+ index up +1.13% as the NASDAQ added +0.73%. On the other hand, cyclicals such as financials (-0.64%) lagged behind the broader index following flatter yield curve, and JPMorgan Chase (-2.64%) sold off as the company’s Q3 earnings release showed muted loan growth. Separately, Delta Air Lines (-5.76%) also sold off along with the broader S&P 500 airlines index (-3.51%), as they warned that rising fuel costs would threaten earnings over the current quarter. European indices posted a more solid performance than the US, with the STOXX 600 up +0.71%, though the sectoral balance was similar with tech stocks outperforming whilst the STOXX Banks index (-2.05%) fell back from its 2-year high the previous session. Overnight in Asia equities have put in a mixed performance, with the KOSPI (+1.17%) and the Nikkei (+1.01%) moving higher whilst the Shanghai Composite (-0.25%) and the CSI (-0.62%) have lost ground. Those moves follow the release of Chinese inflation data for September, which showed producer price inflation hit its highest in nearly 26 years, at +10.7% (vs. +10.5% expected), driven mostly by higher coal prices and energy-sensitive categories. On the other hand, the CPI measure for September came in slightly below consensus at +0.7% (vs. +0.8% expected), indicating that higher factory gate prices have not yet translated into consumer prices. Meanwhile, equity markets in the US are pointing to a positive start later on with S&P 500 futures up +0.32%. Of course, one of the drivers behind the renewal of inflation jitters has been the recent surge in commodity prices across the board, and we’ve seen further gains yesterday and this morning that will only add to the concerns about inflation readings yet to come. Oil prices have advanced yet again, with Brent Crude up +0.69% this morning to be on track to close at a 3-year high as it stands. That comes in spite of OPEC’s monthly oil market report revising down their forecast for world oil demand this year to 5.8mb/d, having been at 5.96mb/d last month. Elsewhere, European natural gas prices were up +9.24% as they continued to pare back some of the declines from last week, and a further two energy suppliers in the UK collapsed, Pure Planet and Colorado Energy, who supply quarter of a million customers between them. Otherwise, copper (+4.4x%) hit a 2-month high yesterday, and it up a further +1.01% this morning, Turning to Brexit, yesterday saw the European Commission put forward a set of adjustments to the Northern Ireland Protocol, which is a part of the Brexit deal that’s caused a significant dispute between the UK and the EU. The proposals from Commission Vice President Šefčovič would see an 80% reduction in checks on animal and plant-based products, as well as a 50% reduction in paperwork by reducing the documentation needed for goods moving between Great Britain and Northern Ireland. It follows a speech by the UK’s David Frost on Tuesday, in which he said that Article 16 of the Protocol, which allows either side to take unilateral safeguard measures, could be used “if necessary”. Mr. Frost is due to meet with Šefčovič in Brussels tomorrow. Running through yesterday’s other data, UK GDP grew by +0.4% in August (vs. +0.5% expected), and the July number was revised down to show a -0.1% contraction (vs. +0.1% growth previously). The release means that GDP in August was still -0.8% beneath its pre-pandemic level back in February 2020. To the day ahead now, and on the calendar we’ve got central bank speakers including the Fed’s Bullard, Bostic, Barkin, Daly and Harker, the ECB’s Elderson and Knot, along with the BoE’s Deputy Governor Cunliffe, Tenreyro and Mann. Data releases from the US include the September PPI reading along with the weekly initial jobless claims. Lastly, earnings releases will include UnitedHealth, Bank of America, Wells Fargo, Morgan Stanley, Citigroup, US Bancorp and Walgreens Boots Alliance. Tyler Durden Thu, 10/14/2021 - 08:29.....»»

Category: blogSource: zerohedgeOct 14th, 2021

Investors could lose $8.4 trillion to the climate crisis over 15 years as ocean health declines, WWF warns

Investors risk big losses from "stranded assets" as climate change batters the global economy, the WWF said. Rising sea levels and increasingly bad weather are big risks to the economy. Sean Rayford/Getty Images Investors could lose trillions of dollars as the climate crisis hits oceans, the WWF has said. An estimated $8.4 trillion of assets and revenues are at risk from rising temperatures. The financial community is embracing green investing ahead of the COP26 summit. Investors face a hit of $8.4 trillion to assets and revenues over the next 15 years as the climate crisis damages ocean health, unless action is taken to hold down global temperatures, the World Wildlife Fund has found.Under a "business as usual" scenario in which little is done to address rising temperatures, investors in 66% of listed companies are at risk of big losses, according to WWF research carried out with research group Metabolic.The study underlines the threat that climate change poses to the global financial system, with investors facing the possibility that companies, infrastructure and whole sectors are ravaged by the phenomenon."This report shows the scale of what we all have to lose," said Karen Sack, executive director of Ocean Risk and Resilience Action Alliance, a global investment pressure group."Today's ocean and coastal assets at risk are tomorrow's stranded assets, where hard-fought-for value is going to be eroded if we don't take immediate action."Of the $8.4 trillion of assets and revenues that are at risk, the biggest chunk would be from damage to coastal real estate and infrastructure, while coastal fisheries would suffer another big hit.The WWF report found that even keeping global temperature increases to below 2°C (3.6°F) would put $3.3 billion of assets and revenues at risk. The Paris Agreement signed by governments in 2015 aims to limit global warming to 1.5°C.It said that the ocean and the activities it supports - such as fishing, renewable energy and trading - are expected to contribute $3 trillion to the global economy a year by 2030.But pollution from shipping, rising sea levels, overfishing, and the loss of biodiversity threaten to hit the "blue economy" hard, the WWF said.Read more: Gabriela Herculano's novel approach to climate-conscious investing is to buy companies that prevent damaging emissions from ever being made. She told us 6 stocks she sees as long-term winners, and explained how her process works.The report said that many investors are more reliant on the ocean than they realize, with airlines, restaurants and retailers deriving revenues from activities centered around the sea."Stranded assets" - assets which suddenly become worth much less or even turn into liabilities - are a big risk for investors, the report said. For example, a port may be a big money spinner but is far less valuable when it's at the centre of freak hurricanes each year.The financial community is increasingly focused on green issues ahead of COP26, the UN climate-change conference scheduled for early November."The COP26 climate summit is a critical moment to take action, and the finance sector must step up and align itself to the Paris Agreement targets by shifting their investments to those that support a sustainable, low-carbon future," the WWF's report said.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 14th, 2021

Is 2021 Shaping Up to be Another Banner Year for Dealership M&As?

There has been a flurry of deal making in the auto retail space of late. Kerrigan Advisers predicts that 2021 would mark the biggest year for dealership M&A activities in decades. A wave of consolidation is sweeping across the auto retail industry. While vehicle purchases by consumers took a hit last year amid pandemic woes, buy-sell agreements among dealerships remained brisk. Per Kerrigan Advisors, a number of acquisitions in the auto retail space hit 289 last year, up 24% from 2019 levels, and marked the highest count in years.The momentum continues this year, with dealership transactions up 27% year over year to 144 in first-half 2021, per Kerrigan. The dealership consulting firm expects a surge in deal making across the industry in the second half. Kerrigan predicts 350 total transactions this year. That would set a new record, and make 2021 the biggest and most memorable year for dealership merger & acquisition (M&A) activities in decades.Key Deals So Far in 2021A flurry of megadeals was witnessed in the auto retail industry, particularly in the last month. On Sep 13, Group 1 Automotive GPI announced that it has inked an agreement to acquire Prime Automotive Group for about $880 million. Per the deal, which is expected to close by late November 2021, Group 1 will be purchasing 30 dealership locations and three collision centers throughout New England and the Mid-Atlantic region. The company has been a success in the North-Eastern United States for many years, and this opportunity will enable it to take advantage of the existing cost structure and further diversify its U.S. foothold. The acquisition will increase the company’s global dealership count to 220. Year to date, Group 1 has completed $570 million of acquired revenues, and the proposed transaction is expected to take its total acquired revenues to at least $2.4 billion.Ten days later, Sonic Automotive SAH announced its decision to buy RFJ Auto Partners in a deal worth $700 million. The acquisition seeks to catapult Sonic into the top-five biggest dealership groups (in terms of revenues) in the United States. RFJ Auto's portfolio of 33 dealerships across seven states generated $2.8 billion in revenues in 2020. The acquisition of RFJ Auto will add six new states (Idaho, Indiana, Missouri, Montana, New Mexico, and Washington) as well as five brands (Chrysler, Dodge, Jeep, Ram, and Mazda) to Sonic’s foothold and portfolio. Importantly, the deal is expected to add $3.2 billion to Sonic’s annual revenues. On Sep 29, Asbury Automotive Group ABG agreed to buy Larry H. Miller Dealerships, the eighth largest dealership in the United States, and Total Care Auto (TCA) in a $3.2-billion deal that is expected to close later this year. The Larry H. Miller Dealership acquisition seeks to add nearly $5.7 billion in expected annualized revenues, giving the company an edge to execute its five-year plan of generating $20 billion in annual revenues by 2025. Asbury claims to become the fourth-largest U.S. new vehicle retailer (in terms of revenues) after the deal closure. The acquired assets include 54 new and seven used vehicle dealerships as well as 11 collision centers. The buyout of TCA, a leading provider of service contracts and other vehicle protection products, will also enhance Asbury’s prospects.In April, Lithia Motors LAD — which has been on a long-standing buyout binge — announced the acquisition of Troy-based The Suburban Collection, which included 56 franchises, representing one of the biggest acquisitions by the auto retailer. The deal strengthened Lithia’s position in the North Central region and is expected to add $2.4 billion in the firm’s annualized revenues. Given Lithia’s spree of big and small deals this year, its total annualized revenues acquired in 2021 summed $6.2 billion.In April, AutoNation AN also announced a deal to purchase 11 stores and a collision center from Peacock Automotive Group. The deal marked the first franchised dealership buyout since 2018 and will add $380 million in annual revenues. The acquisition has expanded AutoNation's footprint from coast to coast to more than 325 locations. What’s Behind This M&A Frenzy?The process of buying cars has undergone a digital transformation, with online sales getting ever so popular, thanks to the pandemic. Auto dealers are ramping up their digital capabilities to make deals with customers and arrange for home deliveries of vehicles. The race to invest vast sums in the e-commerce platform has gathered steam and companies that won’t be making the necessary efforts to step up their online game will be left behind. Retailers are thus vying for a wider reach and greater scale amid the changing operating dynamics of the industry.In light of this scenario, big retailers that are flush with cash are seeking to scoop up smaller rivals in a hope that an increase in scale would help them lead digital transformation and boost competitive advantage. Dealers not only need to operate service departments with expensive and sophisticated equipment but are also supposed to have dual systems to service electric as well as conventional vehicles. As such, capital requirements have increased and the relatively smaller companies would rather accept the takeover proposal than spend huge sums of money to reorient their business model. It’s not just the big businesses taking over the smaller ones. Even Larry Miller chose to be acquired, realizing the importance of scale and synergies, and that it would be better poised to reach new heights as part of a bigger organization than its own.The dealership business is largely fragmented and dominated by small, individually-held operations. Per Kerrigan, the top 50 largest dealerships (in terms of new vehicle sales) in the United States accounted for just 16% of the nation’s total new vehicle sales last year. Some dealers are of the view that the only way to survive long term is to get bigger. Then of course, there are commercial, financial and operating synergy gains from such deals. In addition, a highly competitive auto retail market is resulting in lesser-known and smaller dealer groups exiting the industry.One of the dealership consulting firms Haig Partners sees Lithia’s deep focus on acquisitions as one of the catalysts for increased deal making across the industry. As we know, the company announced a five-year plan in July 2020 to generate $50 billion in revenues and $50 in earnings per share, primarily through acquisitions. Quoting Alan Haig, the president of Haig, “I think the CEOs of other public retailers said whoa that strategy makes a lot of sense.”  Also, increasing dealership profitability and better access to capital have further boosted M&A activities since late 2020.Merger Mania is Unlikely to Slow DownAsbury’s CEO Hult eyes more consolidation in the industry. The company remains committed to strategic buyouts that align with its customer-centric working model. Lithia has already been on an acquisition tear, in sync with its five-year plans. Sonic’s CEO Davi Smith also expects M&A activities to continue picking up. Certainly, a new era of dealership consolidation is underway. Erin Kerrigan, the MD of Kerrigan, is of the opinion, “that this is just the beginning of mega-transactions being announced over the next 12 months, assuming that the financial markets continue to support the financing of these kinds of acquisitions.” Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoNation, Inc. (AN): Free Stock Analysis Report Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report Sonic Automotive, Inc. (SAH): Free Stock Analysis Report Asbury Automotive Group, Inc. (ABG): Free Stock Analysis Report Lithia Motors, Inc. (LAD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 13th, 2021

Slow Start to Busy Week of Inflation Data and Earnings

Slow Start to Busy Week of Inflation Data and Earnings SPECIAL ALERT: The latest episode of the Zacks Ultimate Strategy Session will be available for viewing no later than this Wednesday, October 13. Kevin Matras, Jeremy Mullin and Sheraz Mian will cover the investment landscape from several angles in this informative event. Don’t miss your chance to hear: ▪ Sheraz and Jeremy Agree to Disagree on whether the market top is in or there is more to go ▪ Kevin Matras answers your questions in Zacks Mailbag ▪ Sheraz and Jeremy choose one portfolio to give feedback for improvement ▪ And much more   So be sure to mark your calendar then log on to Zacks.com and bookmark this page. You can understand why the market would be a little nervous to begin this eventful week, which includes the release of a couple important inflation indicators and the start of a new earnings season. Stocks were solidly higher earlier in the session, but took a turn for the worse in the second half. As a result, the Dow went from a more than 200-point gain to a 250-point loss, as it dipped 0.72% to 34,496.06. Furthermore, the S&P was off 0.69% to 4361.19, while the NASDAQ declined 0.64% (or about 93 points) to 14,486.20. The major indices are returning from a positive weekly performance that saw the Dow and S&P rise by 1.2% and 0.8%, respectively. The NASDAQ managed an increase of nearly 13 points. Stocks muscled through a sharp selloff on Monday and a very disappointing employment report on Friday, which saw only 194K jobs added when approximately 500K were expected. The next big report that investors will be watching with rapt attention is the CPI on Wednesday, followed by the PPI on Thursday. Of course, inflation is one of the market’s big concerns right now as stable prices are part of the Fed’s dual mandate. The last several reports have been very high, though the August print did show some slight improvement over the previous month.   “Economists are projecting the headline inflation measure to come in 0.3% above August's CPI. Core inflation (excluding volatile pricing categories like energy and food) is anticipated to exhibit the same 0.3% month-over-month increase,” said Dan Laboe in Headline Trader. “Market participants will be laser-focused on this number as it will signal whether the Federal Reserve and their steadfast "transitory" posturing on inflation can be trusted (significant interest rate implications).” Wednesday might also be considered the first day of earnings season (unofficially of course). We’ll be getting reports from major banks like JPMorgan (JPM) and Goldman Sachs (GS) with a lot more expected in the following two days. In fact, more than 40% of the S&P’s financial sector will have reported by the end of the week, according to Dan. Today's Portfolio Highlights: Surprise Trader: Earnings season is back! Things don’t really heat up until later this week with the big banks, but Dave is already buying. He started the week by adding Covenant Logistics (CVLG), which is part of the highly-ranked Transportation – Truck space (top 11%). This Zacks Rank #2 (Buy) has beaten the Zacks Consensus Estimate for 14 straight quarters now with the most recent surprise reaching 50%. Looking forward, the company has a positive Earnings ESP heading into its next quarterly report on Wednesday, October 20 after the bell. The editor added CVLG on Monday with a 12.5% allocation, while also selling Darden (DRI) for a slight gain of 1.7% in less than a month. The full write-up has more on today’s action. Stocks Under $10: The best performer among all ZU services on Monday was easily Flexion Therapeutics (FLXN), which soared more than 58% on news that it is being acquired by Pacira BioSciences (PCRX). FLXN is a specialty pharmaceutical company that develops and sells pain therapies. Brian bought it back on August 31. Under normal circumstances, the editor would sell a company that soared past 50% on a Monday morning. However, he considers the deal to be “really interesting” because there are so many earnouts for the shareholders. In other words, Brian sees the potential for even more profit from this name, so he’s hanging onto it for now. Read the full write-up for a summary on the earnouts.   Technology Innovators: Last week’s chip stock purge (in which four stocks were sold) left this portfolio with several open spots. Brian filled one of them on Monday with Belden (BDC), a wire & cable products company that is benefitting from the strong telecom space at the moment. Rising earnings estimates make the stock a Zacks Rank #1 (Strong Buy), while it has beaten the Zacks Consensus Estimate in each of the last four quarters with an average surprise of 27%. The editor sees a good valuation, including a forward PE of 13x for a stock with topline growth of 41% last quarter. Learn a lot more about this new addition in the complete commentary.   Counterstrike: The service added a couple names on Monday that prospered during the worst of the pandemic, but have since pulled back. Jeremy thinks they’re set to be bounce plays. Firstly, Zoom Video (ZM) was “left for dead” as growth for this communications platform slowed when restrictions were eased. However, the negativity looks to be priced in now, as earnings estimates are on the rise for the current year. The other buy was payment processing innovator Square (SQ), which is still a Zacks Rank #1 (Strong Buy) even though shares are down 20% from recent highs. Exposure to Bitcoin is a big plus for this stock as the cryptocurrency moves to all-time highs. The editor added ZM today with a 4% allocation with hopes for a bounce above $300 ahead of its late November earnings report. SQ was added with an 8% allocation to capture an expected runup before its early November release. Read the full write-up for a lot more on these moves. Headline Trader: This service had a top performer on Monday as well with SoFi Technologies (SOFI) climbing nearly 13.5%. Here's how editor Dan Laboe put it in today's commentary: "SoFi (SOFI) took flight in today's session following Morgan Stanley's (MS) initiation of coverage on this underappreciated stock. MS gave it an overweight rating with a price target of $25 a share (in line with the target I had set when on my original purchase date), representing an over 50% from where it closed the session on Friday." SOFI is now the second best performer in the portfolio with a gain of nearly 14.6% since being added less than two weeks ago. Black Box Trader: The portfolio replaced six names in this week's adjustment. The stocks that were sold on Monday included: • Jefferies Financial Group (JEF, +5.7%) • New York Community Bancorp (NYCB, +1.8%) • Avantor (AVTR, +1%) • Capital One Financial (COF) • Pfizer (PFE) • Range Resources (RRC)   The new buys that filled these spots were: • Archer-Daniels-Midland (ADM) • Century Aluminum (CENX) • Cleveland-Cliffs (CLF) • DICK'S Sporting Goods (DKS) • Huntsman (HUN) • Olin Corp. (OLN) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Have a Good Evening, 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: zacksOct 13th, 2021

18 pitch decks that startups used to raise millions to disrupt media and advertising

They're pitching solutions that claim to help marketers make better ads, plug their labor gaps, and more. Toch.ai Investors are pouring money into advertising, media, and marketing startups. They're trying to capitalize on changing consumer habits, marketers' need to see their ads are working, and more. Check out these 18 pitches to see how these startups sold their visions to VCs and other investors. See more stories on Insider's business page. Investors are pouring money into startups that are trying to disrupt advertising, media, and marketing.Insider has been tracking these startups that are using tech to capitalize on changing consumer media habits and marketers' desire to reach new audiences and ensure their ads are working.Check out these pitch decks that they've used to sell their vision and raise millions from PE and VC investors.They range from tools that measure digital ad performance to platforms for people seeking out online entertainment.Video editingToch.ai is an India-based startup that aims to democratize video editing, arguing that the technologies to produce and distribute videos require time-consuming, manual processes, and existing video editing software can be pricey.Toch.ai has raised $11.75 million in Series A funding led by Moneta Ventures to support an expansion into bigger markets like the US.See the pitch deck that helped a video-editing startup raise $12 million to take on Adobe and expand into the USContextual advertisingContextual advertising has become a buzzy area in adtech as the sector shifts away from the precision-targeting and tracking of individual users. Founded seven years ago by two former Googlers, Seedtag specializes in contextual advertising - using data and artificial intelligence to place ads within relevant publisher content that users should be more likely to interact with. Seedtag just raised a $40 million funding round, led by Oakley Capital. See the pitch deck that helped contextual advertising firm Seedtag raise $40 million. The European adtech company now plans a US expansion.Ad automationDan Pantelo started a performance marketing agency in college and pivoted to software after discovering that creative testing was the most important and time-consuming part of making ads.Today, his marketing technology startup Marpipe claims to help advertisers figure out which ads perform best by automatically testing hundreds of variations.Marpipe just raised $8 million in Series A for a total of $10 million raised to date.The key pitch deck slides that helped an ad automation startup raise $10 millionFreelance consulting Catalant CEO Patrick Petitti. Catalant Technologies Investors are pouring millions into platforms like Catalant Technologies that connect companies to independent advertising and consulting professionals, a need that's growing as people quit in the pandemic.Catalant has raised more than $100 million by pitching itself as an alternative to consulting giants like McKinsey.See the key slides a staffing platform used to raise more than $100 million from investors like Morningside CEO Gerald ChanMarketing strategyAd agency vets Grant McDougall, Liza Nebel, and Matt Gross started BlueOcean in 2019, when they saw an opening to use machine learning to simplify market research and tell marketers how they and their competitors were performing. Now, they count Microsoft, Google, Cisco, Bloomingdale's, and Diageo as clients.The software-as-a-service startup just raised $15 million in Series A funding from private equity firm Insight Partners.Pitch deck reveals how an AI startup that helps brands like Google and Microsoft plan their marketing raised $15 millionData management toolsGoogle and Apple's moves to clamp down on third-party cookies and the rise of online shopping have advertisers clamoring for help managing all their customer data so they can effectively market to them.One such company is 4-year-old Amperity, which sells software that clients like Starbucks, Patagonia, and Crocs use to manage stats from sales, email, e-commerce, and loyalty card programs.Amperity has raised $100 million in its Series D from existing investors including Tiger Global Management, Declaration Partners, and Madrona Venture Group, for a total of $187 million.Here's the pitch deck that helped a marketing tech startup raise $100 million at a $1 billion valuation to help brands manage their dataOut-of-home advertising platformOutdoor advertising is coming back after being crushed during the pandemic, and adtech startup OneScreen.ai is hoping to cash in with a platform for brands to search, buy, run and measure their out-of-home ad campaigns.OneScreen just raised $1.2 million in pre-seed funding in a round led by Florida-based fund TechFarms Capital with other investors including HubSpot cofounders Brian Halligan and Dharmesh Shah, Wayfair's alumni fund Wayfund, Lola.com CEO Mike Volpe, and BuySellAds.com CEO Todd Garland.See the pitch deck that Google, Hubspot and Wayfair alums used to raise $1.2 million to build the 'Amazon of out-of-home advertising'Consumer data-collectionTracer started in 2015 as a unit of Gary Vaynerchuk's ad agency VaynerMedia that automatically collects and organize data that isn't personally identifiable. Led by Tracer co-founder and CEO Jeffrey Nicholson, it also offers free consulting services. It started by helping VaynerMedia oversee hundreds of millions in ad buys for clients like Oreo maker Mondelez; today, clients include other ad agencies like Labelium; Condé Nast; and pharma giant Sanofi.Tracer recently raised $9.9 million in seed funding led by big names like former Walmart and Amazon exec Marc Lore and NBA star Kevin Durant's firm Thirty Five Ventures.Read the pitch deck a Gary Vaynerchuk-backed data startup used to raise $10 million from investors like Walmart's ex-ecommerce CEOBuilding lifetime customersAs people do more of their shopping online, marketers are trying to get them to become repeat customers.Former Paypal and Facebook product and data analytics manager Emad Hasan says his startup Retina helps brands like Dollar Shave Club and Madison Reed acquire and keep customers by building lookalike audiences based on companies' order history and shopper attributes.It just raised $8 million in Series A funding from Alpha Intelligence Capital, Vertical Venture Partners, and others. This investor deck helped a former Facebook product manager raise $8 million to help brands boost customers' long-term valueData-buying toolsNick Jordan founded 5-year-old Narrative to let advertisers buy data without the need for data brokers like Epsilon and Acxiom that can be known for not disclosing their data sources or what cut they take.The marketing-tech firm makes money by taking a cut of data sales and through larger software as a Service (or SaaS) contracts where marketers pay monthly fees for data.Narrative in September raised $8.5 million in a Series A funding round led by G20 Ventures and which included Glasswing Ventures and MathCapital, bringing its total funding to $14 million.Here's the investor deck that helped startup Narrative raise $8.5 million to help marketers buy data safelySupport for online sellersAdtech vet Paul Palmieri joined Tradeswell as CEO based on his experience as a VC investor, where he saw dozens of DTC companies whose businesses weren't scalable.Tradeswell is a SaaS platform that consolidates brands' marketing, retail, inventory, logistics, forecasting, lifetime value and financial information. Its pitch is that it gives brands insights so they know what to sell to whom, where, and at what price.US e-commerce is set to be worth $1 trillion by 2023, according to a recent report by Insider Intelligence's eMarketer, and Tradeswell says it can help traditional and DTC brands save millions of dollars in outsourced contracts and boost their sales.Tradeswell recently raised $3.3 million in seed round funding from Signalfire and Construct Capital.This investor deck helped an entrepreneur raise $3.3 million to build 'the Bloomberg terminal' for online sellers Ad performance tools BrandTotal BrandTotal is a marketing analytics company that pitches advertisers on the premise that most digital and social media ads are now "dark," or visible only to the people they're targeting. It joins other businesses that promise greater visibility into digital advertising such as Pathmatics, which measures how much brands spend on Facebook and other platforms.BrandTotal co-founder Alon Leibovich said the company uses AI to track ads and help advertisers understand their competitors' strategies. This pitch has helped BrandTotal win business from big brands like L'Oréal and raise $12 million in a Series B funding round, bringing its total funding to $20 million. Canada's INcapital Ventures led the latest round along with Maor Investments, Glilot Capital Partners, Flint Capital, KDC Media Fund, and FJ Labs.This investor deck helped startup BrandTotal raise $20 million to date to help advertisers like L'Oréal see how their digital ads are workingE-commerce advertising servicesBrands are increasingly becoming advertising platforms, giving rise to a cottage industry of adtech companies that help marketers build their own ad businesses.One such firm is 9-year-old adtech firm Adzerk, which is rebranding as Kevel. EMarketer reports that e-commerce advertising will be a $17 billion market this year. Retailers like Walgreens, Walmart, and Instacart have led the charge, but Kevel sees an opportunity for other types of brands to build ad businesses of their own.In December, Kevel raised $11 million in a Series A round led by Fulcrum Equity with Commerce Ventures, MathCapital and Food Retail Ventures also participating.A digital ad firm just raised $11 million to help brands like United Airlines and Ticketmaster build their own ad businessesTargeted ad tools ID5 Google's and Apple's moves to clamp down on privacy and digital-ad targeting have been a boon for startups trying to find workarounds like identity solutions.One such firm is ID5, a European startup that helps advertisers find audiences to target and make sure people don't repeatedly see the same ads. It makes money from licensing its ID to adtech companies for a monthly fee that ranges from $5,000 to $30,000, CEO Mathieu Roche said. The company gives away its technology to publishers to grow adoption of the ID.ID5 closed a $6 million Series A funding round in March from Alliance Entreprendre, Progress Ventures, and 360 Capital Partners. The 4-year-old company has raised a total of $7.5 million.Read the pitch deck that a startup used to raise $6 million to save targeted advertisingPrivacy compliance helpNew privacy regulations are springing up around the globe, and publishers and marketers are turning to technology companies to stay on the right side of these laws and avoid huge fines.One of the companies capitalizing on the increased focus on data privacy is Sourcepoint. Founded by adtech vets Ben Barokas and Brian Kane, the US-based technology company has a platform that lets publishers and advertisers get legal consent from people to use their data.Sourcepoint recently raised $17 million in additional funding, led by new investor Arrowroot Capital, bringing its total funding to $47.8 million since it launched in 2015.The pitch deck used to raise $17 million for a startup that helps advertisers and publishers comply with privacy lawsReal-time market research Matt Britton Agency veteran Matt Britton pitches his consumer intelligence startup Suzy as an always-on digital assistant like Siri or Alexa for marketers. It has a consumer panel that lets marketers conduct surveys and research on subjects like product development and ad effectiveness testing.He just raised $50 million in Series D after closing a $34 million Series C last year, bringing its total raised to $100 million.H.I.G. Growth Partners, an affiliate of H.I.G. Capital, led the round, with Rho Capital Partners, Bertelsmann Digital Media Investments, Foundry Group, and Triangle Peak Partners also participating.See the pitch deck a market research startup that's trying to rival Qualtrics and SurveyMonkey used to raise $50 millionLivestreaming tools for creatorsLivestreaming startup Restream was founded in 2015 to help gaming content creators grow their reach by livestreaming to Twitch and YouTube at the same time.It's since expanded to serve musicians, politicians, influencers, publishers, non-profit organizations, and other businesses and says its goal is to democratize broadcasting. Restream said half its 2.5 million users are now non-gamers. Most of its users are nonpaying, but it sells subscriptions from $19 to $299 per month that come with features like the ability to record streams and access to more customer support.Restream announced in August that it had raised $50 million in fresh funding from investors including Sapphire Ventures and Insight Partners.Read the 14-slide pitch deck that helped livestreaming startup Restream raise $50 million amid the pandemic Video streaming subscriptionsCuriosityStream is a 5-year-old streaming service founded by former Discovery Communications founder John Hendricks. It went public in fall 2020 through a reverse merger with Software Acquisition Group, a SPAC led by Jonathan Huberman, who formerly led video adtech firm Ooyala.CuriosityStream is differentiated from other streaming services in that it focuses on factual content like documentaries and features, with more than 3,100 titles available. It reported 13 million paying subscribers buying monthly and yearly subscriptions ranging from $3 a month to $70 a year.The deal with Software Acquisition Group gave CuriosityStream $180 million in cash.The investor deck that CuriosityStream used to secure $180 million to take on rival video streaming servicesReaching online sports fans Overtime Overtime wants to be the next ESPN, but for social media.It started 2016 by Endeavor vets Dan Porter and Zack Weiner with a focus on high-school sports and athletes and has expanded into areas including esports. Overtime captures game highlights through people it pays to film events and also creates original programming and events. It distributes content mainly on social platforms like YouTube, Instagram, and TikTok. Its core business is making money from ads, sponsorships, and merchandise, and projects making $200 million in annual revenue by 2024.It recently raised $80 million from investors including Amazon founder Jeff Bezos, rapper Drake, and Reddit cofounder Alexis Ohanian, The Wall Street Journal recently reported.Leaked pitch deck shows how sports-media startup Overtime plans to reach $200 million in revenue by 2024Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 12th, 2021

Southwest CEO Gary Kelly: When An Airline Falls Behind, It’s Hard To Catch Up

Following is the unofficial transcript of a CNBC interview with Southwest Airlines Co (NYSE:LUV) Chairman & CEO Gary Kelly on CNBC’s “Squawk on the Street” (M-F, 9AM-11AM ET) today, Tuesday, October 12. Following are links to video on CNBC.com: Q3 2021 hedge fund letters, conferences and more Southwest CEO: When An Airline Falls Behind, It’s […] Following is the unofficial transcript of a CNBC interview with Southwest Airlines Co (NYSE:LUV) Chairman & CEO Gary Kelly on CNBC’s “Squawk on the Street” (M-F, 9AM-11AM ET) today, Tuesday, October 12. Following are links to video on CNBC.com: .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 Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio 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); Q3 2021 hedge fund letters, conferences and more Southwest CEO: When An Airline Falls Behind, It’s Hard To Catch Up Southwest CEO On The Airline’s Covid Vaccine Push, Flight Fiasco JIM CRAMER: Southwest shares are edging higher this morning, thank heavens. The airline is hoping to normalize the schedule by tomorrow. Normalize is an odd term because I expect normal from Southwest. The wave of cancellations in the past few days, wave in cancellations let’s go back earlier in the spring. This is suboptimal. So, joining us now is Southwest Airlines Chairman and CEO Gary Kelly. Gary, I got to tell you, you do not shy away. I said you got to come on and here you are. Gary, because you are so good and so deserving of the respect, could you please tell us what you see going on because this is not you and it's not southwest. GARY KELLY: Hey, morning Jim. Great to be with you. Yeah, I know it's been a really rough weekend and obviously I really feel for our customers and our people that are trying their best to serve our customers but when an airline gets behind, it's hard to catch up. So, if you go back to Friday, basically the FAA had a series of delay programs that were implemented that covered all of Florida, every single one of our stations including a seven-hour ground stop at Orlando. You'll have to ask the FAA what was the cause of all of that, but about half of our airplanes touch the state of Florida. We’re one of the largest airlines in the country. So, by the end of the day we had significant numbers of airplanes and flight crews that were totally out of position and as any, again, any aviation expert knows it just takes several days to get everything back aligned so we had a pretty good day yesterday. Far fewer cancellations than what we were experiencing Saturday and Sunday. And today was pretty much shaping up to be a normal day. As usual we have other issues that we have to deal with whether it's weather or other ATC delays across the country but for the most part, today's pretty much back to normal. CRAMER: Okay, Gary, I understand that the weather-related issues. Florida didn't really see that much cancellations from other companies in your industry, but there's a lawsuit that was filed, filed Southwest Airlines Pilots Association, it’s in the Northern District of Texas. And what disturbed me about it, this was earlier this year, is they say that basically you're using illegal tactics are a form of asymmetrical warfare negotiations. Gary, Gary, you know when you read this and then you read about the Texas governor says, listen we can't, we're gonna be against mandates. I see. Well, wait, wait a second, maybe vaccines are an issue, maybe labor problems of which Southwest Air has not historically had so you understand how we quickly just pivot from Florida and FAA to wondering what happened here with the pilots? KELLY: Well yeah, again, I think that we're uniquely affected because we have so many of our flights that touch Florida. All the airlines were impacted on Friday, it was just more of an impact on us and it just took us longer to recover. But all of our employees worked very hard through the weekend and it's, it's tough on our customers but it's also tough on our people so they did a phenomenal job. There's absolutely no, no issue in working with our employees. Talking about the vaccine mandate, oh yeah, I mean there are some that have very strong views on both sides of that issue and, you know, it's not as I think you probably know, I've never been in favor of corporations imposing that kind of a mandate. I'm not in favor of that, never have been. But the executive order from President Biden mandates that all federal employees and then all federal contractors which covers all the major airlines have to have a mandate vaccine in place by December the eighth so we're working through that. We're urging all of our employees to get vaccinated. If they can't, we're urging them to seek an accommodation either for medical or religious reasons and my goal obviously is that no one loses their job. The objective here obviously is to improve health and safety, not for people to lose their jobs. So, yes, we have some very strong views on that topic but that's not what was at issue with Southwest over the weekend. CRAMER: Alright but I still want to go over this. United has only 3% people who are not vaccinated. Delta, you have a $200 monthly surcharge healthcare if you don't get vaccinated. What do you have to make it so people get vaccinated and if they don't, what is the procedure? KELLY: We're encouraging them and we're offering the equivalent of two days pay for them to turn in their vaccination card that compensates them obviously for the time that it takes and any aftereffects, you know, from the vaccine. So, it's an encouragement and not, not any kind of a stick if you will. CARL QUINTANILLA: Gary, all the same, the, the cancellations are being used by some to argue that this was a huge vaccine protest in the words of Donald Trump Jr. on Twitter in the past 24 hours. I mean, how much can you push back on that? You say it was not an issue but to what degree did it contribute to this problem at all? KELLY: Zero. I mean, again, we look at all of our employee behaviors in terms of absenteeism, in terms of people volunteering to come in and pick up what's referred to as open time, and they're very, they're all very normal. The president of our pilots union has been out talking to the media confirming all of that so I think people again that, that understand how airlines work, when you get behind, it just takes several days to catch up and the fact that we're basically caught up yesterday and today supports, you know, the, the assertion that we're making here but we were significantly set behind on Friday and it just takes several days to catch up. CRAMER: Gary, I feel awful doing this but I got to go back in June. Two days, technical issues, 500 flights canceled. I want to step back for a second. You’re Southwest Air. I frankly don't care that there were problems with Florida, with FAA, you’re Southwest Air. You solve these things. You have two outages, again, you had one in June. Maybe Southwest Air has to change its ways that it can't be just shut down because of what Orlando, maybe you shouldn't do that maybe you need to go more hub and spoke. This is your, your airline and everyone knows, never, never, no cancellations, no problems. The fact that I have to ask about labor, the fact that I have to ask about the outages, something's wrong at Southwest Air. KELLY: Well I think very fair criticism Jim and so I was simply answering the question of what happened here over the weekend, you know, not whether we should have been better prepared or have done something differently. So, we operate a linear route network, we don’t hub and spoke. We’re the probably the largest airline in terms of seats offered in the state of Florida. Again, every single airport in the state of Florida was impacted by this. So, it's, it's very unique. It's very unusual. It wasn't anything that Southwest caused. If you go back to the June outage, that was, that was us. That was a technology outage and those are, those are few and far between. But it's been a rough summer and I'm not offering any excuses. Our customers didn't get their best from Southwest Airlines is not what we want. We definitely are, we definitely have some staffing challenges as well that we've talked about before so we have moderated our flight schedule and accelerated our hiring plans so there were definitely steps underway to, to mitigate the issue. We were thinly staffed coming into the weekend and that certainly didn't help things as we were trying to recover but point well taken, and, you know, it's, as usual, any company is a work in progress and we've always got opportunities to improve and you get no argument from me that this is not, not the kind of service that we want to offer from Southwest. CRAMER: Fair enough. DAVID FABER: Hey Gary, it’s David. I mean when, when it comes then to those opportunities to improve, where is your, and by the way the next CEO, where is the focus going to be on that improvement given what you've seen both this weekend and obviously from June? I know not necessarily related, separate issues but still. KELLY: Yeah not related at all but I think in the, in this particular case, it would help for us to have better tools to recover. So, there, there aren't perfect optimization tools to re-flow airplanes when we have a setback like we did on Friday. And then, secondly, there's technology that's required to reschedule our flight crews, so we have flight attendants, we have pilots, we have airplanes and once it gets behind, it's just difficult to get that back together so I think the opportunity is to improve on that process. It's called repair. It's complicated, but we definitely have some good opportunities there, you know, for the future. QUINTANILLA: Gary, finally there's some commentary from some of the other carriers today about the holiday season, preparing for robust travel period. Are you seeing that kind of booking in Q4? KELLY: Yeah, I think, you know, on the business side of things, you have the Delta variant, the surge in cases that occurred, you know, beginning back in June and then eventually that has an impact on air travel and it suffers so that wave has turned over and we've definitely seen some improvement in, in bookings there so yeah we're looking forward to a strong holiday season. And we just want to be very focused on offering a high-quality schedule and experience for our customers. CRAMER: I want to go deeper on this weather issue. IBM has a weather product, the Wall Street Journal seemed to indicate that maybe it was not up to snuff. There are questions about whether you had spent enough money on IT during the 500 flight cancellation in June. Are you underspending on IT and have you over furloughed and therefore having trouble getting people back? KELLY: All great questions. I think the answer is, you know, a very emphatic no, we're not underspending. We suspended investing in some of our initiatives early on when the pandemic first unfolded in March, but we very quickly got back on track once the CARES Act Payroll Support Program came through and made sure that we continue to make those investments. The two technology outages that occurred back in June were human error so it wasn't a lack of technological capability, it was simply, in one case, not adhering to a procedure. So, it happens to companies, you know, occasionally we just don't want it to happen very often and obviously every time something like that happens, we, we tried to learn from it. We've deployed new technology for reservations, we're in the process of deploying new maintenance, record keeping software that supports all of our aircraft, one of the largest projects we've ever undertaken, probably the largest deployment in the airline industry in history. So, we have wonderful technology, we have a wonderful technology department. They’re, they're very well resourced. I think what like a lot of companies, we definitely are having some hiring challenges. We're trying to get 5,000 people hired by the end of this year, we're about halfway there. But overall technology's in pretty good shape in terms of staffing and for the most part, our staffing challenges have moderated. I’d still like to have more cushion in the operation so we can absorb the kind of blow that we saw last Friday better. CRAMER: Alright, thank you Gary Kelly, Chairman & CEO of Southwest Air. Good luck to you sir. Appreciate you coming on “Squawk on the Street.” KELLY: Thank you sir. You bet. Updated on Oct 12, 2021, 1:14 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: valuewalkOct 12th, 2021

CME Group (CME) Futures Products Aid Amid Cost Concerns

CME Group (CME) holds potential to reap benefits driven by expansion of futures products, strong global presence, prudent capital deployment and sufficient liquidity position. CME Group Inc. CME is well-poised for growth, driven by higher clearing and transaction fees, strong global presence, and innovative products launches.CME Group’s top line should continue to gain from higher clearing and transaction fees, market data and information services and other revenues.Strong market position with diverse derivative product lines, additional market data distribution channels, increase in custody fees and global reach are likely to drive revenues in the long run.CME Group continues to launch innovative products, tools and services to support customer needs and widen its international presence. Per its strategic initiatives, CME Group has undertaken various product launches. The company launched the Used Cooking Oil Methyl Ester (UCOME) futures contracts to support the transition to a greener energy market for transportation fuels. It unveiled Pork Cutout futures and options to boost its leading agricultural benchmarks. Further, it launched Micro WTI futures to enhance its robust suite of energy futures and options. The launch of Micro WTI was the most successful commodity product launch in the history of CME Group.Also, recently, it introduced (BSBY)-based interest rate futures to boost the prevailing short-term interest rate futures as well as Term SOFR index products.Expansion of futures products in emerging markets, non-transaction-related opportunities and over-the-counter offerings should add to the upside. Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model.In the third quarter of 2021, CME Group has teamed up with IHS Markit to combine their post-trade services for over-the-counter (OTC) markets into a new joint venture. The newly formed joint venture is well poised to serve clients globally and offer a wide range of trade services with capital efficiencies across the markets. This deal is expected to boost and expand its post-trade and trade-processing services and enhance the OTC markets. It continues to focus on strategic initiatives to grow the business, including the efforts to serve the OTC markets and to distribute the products and services on a global basis.The company witnessed a 14% increase in average daily volume in the third quarter of 2021 year over year due to increased volumes in two of the six product lines.CME Group boasts a strong balance sheet with solid cash balance and has excess borrowing capacity for general corporate purposes.Given its prudent capital management policy, CME Group undertakes shareholder-friendly moves via dividend hikes. In February 2021, its board of directors hiked its quarterly cash dividend by 6%. Its dividend payments have witnessed an eight-year CAGR (2014-2021) of 8.5%.However, the company’s expenses escalated over the last several years due to higher compensation and benefits, technology expenses, professional fees and outside services, licensing and other fee agreements, depreciation and amortization, and other. A persistent elevation of expenses might weigh on its margins. For 2021, the company expects total adjusted operating expenses, excluding license fees, of around $1.56 billion, which is $15 million lower than the earlier guidance and almost flat year over year.Other PlayersOther key players from the securities and exchanges industry include Cboe Global Markets, Inc. CBOE, Nasdaq, Inc. NDAQ and OTC Markets Group Inc. OTCM.Cboe Global’s surpassed estimates in three of the last four quarters and missed in one, with the average beat being 3.80%.Nasdaq surpassed estimates in each of the last four quarters, with the average earnings surprise being 9.21%.OTC Markets surpassed estimates in each of the last four quarters, with the average earnings beat being 35.73%. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>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 CME Group Inc. (CME): Free Stock Analysis Report Nasdaq, Inc. (NDAQ): Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report OTC Markets Group Inc. (OTCM): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksOct 12th, 2021

Futures Rebound From Overnight Slide As Oil Keeps Rising

Futures Rebound From Overnight Slide As Oil Keeps Rising US equity-index futures erased earlier declines, rebounding from a loss of as much as 0.8% helped by the start of the European session and easing mounting concerns about stagflation from rising energy prices, signs of widening regulatory scrutiny by China, and the upcoming third-quarter earnings which is expected to post a sharply slower pace of growth and beats than recent record quarters. At 730am ET, Dow e-minis were up 5 points, or 0.1%, S&P 500 e-minis were up 7.25 points, or 0.16%, and Nasdaq 100 e-minis were up 46.75points, or 0.31%. Oiil rose 0.3% to $83.86/bbl while the dollar dipped and 10Y yield drifted back under 1.60%. Gains in tech stocks kept Nasdaq futures afloat on Tuesday, while energy names rose as Brent resumed gains, trading around $84/bbl on expectations that a power crisis from Asia to Europe will lift demand and tighten global balances. Higher oil prices and supply chain disruptions have set off alarm bells for businesses and consumers ahead of the third-quarter reporting season that kicks off on Wednesday with JPMorgan results.  "We believe that market participants could stay concerned over high energy prices translating into further acceleration in inflation, and thereby faster tightening by major central banks," said Charalambos Pissouros, head of research at JFD Group. In the pre-market, Tesla rose 0.7% after data showed the electric vehicle maker sold 56,006 China-made vehicles in September, the highest since it started production in Shanghai about two years ago. Oil firms including Exxon Mobil and Chevron Corp gained 0.1% and 0.3%, respectively, as Brent crude hit a near-three year high on energy crunch fears. Here are the notable movers: China’s Internet sector is one of the “most undervalued” in Morningstar’s coverage, says Ivan Su, an analyst, adding that Tencent (TCEHY US) and Netease (NTES US) are top picks MGM Resorts (MGM US) rises 2% in U.S. premarket trading after stock was upgraded to outperform from neutral and price target more than doubled to a Street-high $68 at Credit Suisse Quanterix (QTRX US) jumped 20% in Monday postmarket trading after the digital-health company announced that its Simoa phospho-Tau 181 blood test has been granted breakthrough device designation by the U.S. FDA as an aid in diagnostic evaluation of Alzheimer’s disease Relay Therapeutics (RLAY US) fell 7% in Monday postmarket trading after launching a $350 million share sale via Goldman Sachs, JPMorgan, Cowen, Guggenheim Securities Westwater Resources (WWR US) rose as much as 26% in Monday postmarket trading after its board of directors approved construction of the first phase of a production facility in Alabama for battery ready graphite products TechnipFMC (FTI US) in focus after co. was awarded a substantial long-term charter and services contract by Petrobras for the pipelay support vessel Coral do Atlântico Fastenal, which was one of the first companies to report Q3 earnings, saw its shares fall 2.4% in premarket trading on Tuesday, after the industrial distributor said the Covid-related boost was fading. The company said growth in the quarter was slightly limited by either slower expansion or contraction in sales of certain products related to the pandemic, when compared to the previous year quarter. While there was an uptick in sales of certain Covid-related supplies, the unit price of many products was down significantly, the company said in a statement.  Third-quarter sales and profit were in line with the average analyst estimate "While investors want to believe the narrative that stock markets can continue to move higher, this belief is bumping up against the reality of how the continued rise in energy prices, as well as supply-chain pressures, are likely to impact company profit margins,” said Michael Hewson, chief market analyst at CMC Markets in London. In Europe, losses led by basic resources companies and carmakers outweighed gains for utilities and tech stocks, pulling the Stoxx Europe 600 Index down 0.1%. Metals miner Rio Tinto was among the worst performers, dropping 2.7%. European equities climbed off the lows having lost over 1% in early trade. Euro Stoxx 600 was down -0.35% after dropping as much as 1.3% initially, led by basic resources companies and carmakers outweighed gains for utilities and tech stocks. The DAX is off 0.3%, FTSE 100 underperforms in a quiet morning for news flow. Miners, banks and autos are the weakest sectors after China reported a sharp drop in auto sales; utilities, tech and real estate post modest gains. European tech stocks slide, with the Stoxx Tech Index dropping as much as 1.4% in third straight decline, as another broker downgrades TeamViewer, while Prosus and chip stocks come under pressure. TeamViewer shares fall as much as 5.1% after Deutsche Bank downgrades the remote software maker to hold from buy following recent guidance cut. Asian stocks fell, halting a three-day rally as uncertainty over earnings deepened amid elevated inflation, higher bond yields and the risk of a widening Chinese crackdown on private industry. The MSCI Asia Pacific Index slid as much as 1.2%, led by technology and communication shares. Alibaba plunged 3.9% following a rally over the past week, while Samsung Electronics tumbled to a 10-month low after at least five brokers slashed their price targets, as China’s power crisis is seen worsening supply-chain disruptions. “Given the run-up in tech so far, it’s not difficult for investors to harvest profits first before figuring out if techs can maintain their growth when yields rise,” said Justin Tang, head of Asian research at United First Partners. Shares in Hong Kong and the mainland were among the worst performers after Chinese authorities kicked off an inspection of the nation’s financial regulators and biggest state-run banks in an effort to root out corruption. The MSCI Asia Pacific Index is down 12% from a February peak, with a global energy crunch lifting input prices and the debt crisis at China Evergrande Group weighing on the financial sector. Investors are waiting to see how this impacts earnings, according to Jun Rong Yeap, a market strategist at IG Asia.  “Increasing concerns on inflation potentially being more persistent have started to show up,” he said. “This comes along with the global risk-off mood overnight, as investors look for greater clarity from the earnings season on how margins are holding up, along with the corporate economic outlook.” Japan’s Topix index also fell, halting a two-day rally, amid concerns about a global energy crunch and the possibility of a widening Chinese crackdown on private industry. The Topix fell 0.7% to 1,982.68 at the 3 p.m. close in Tokyo, while the Nikkei 225 declined 0.9% to 28,230.61. SoftBank Group Corp. contributed the most to the Topix’s drop, decreasing 2.4%. Out of 2,181 shares in the index, 373 rose and 1,743 fell, while 65 were unchanged. “Market conditions were improving yesterday, but pushing for higher prices got tough when the Nikkei 225 approached its key moving averages,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.  The Nikkei’s 75-day moving average is about 28,500 and the 200-day moving average is about 28,700, so some investors were taking profits, he said. Japan’s spot power price increased to the highest level in nine months, as the global energy crisis intensifies competition for generation fuel before the winter heating season. In FX, the Bloomberg Dollar Spot Index reversed an overnight gain as the greenback slipped against all of its Group-of-10 peers. Risk sensitive Scandinavian currencies led gains, followed by the New Zealand and Australian dollars. The pound was little changed while speculators ramped up wagers on sterling’s decline at the fastest rate in more than two years, Commodity Futures Trading Commission data show, further breaking the link between anticipated rate increases and currency gains. The yen steadied after three days of declines. The Turkish lira extended its slide to a record low after President Recep Tayyip Erdogan hinted at a possible military offensive into neighboring Syria. Fixed-income was quiet by recent standards: Treasury futures were off lows of the day, improving as S&P 500 futures pare losses during European morning, and as cash trading resumed after Monday’s holiday. The 10Y yield dipped from 1.61% to 1.59% after hitting 1.65% based on futures pricing on Monday, but the big mover was on the front end, where 2-year yields climbed as much as 4bps to 0.35% the highest level since March 2020 reflecting increased expectations for Fed rate hikes, as Treasury cash trading resumed globally. Two coupon auctions during U.S. session -- of 3-and 10-year notes -- may weigh on Treasuries however.  Treasury and gilt curves bull-flatten with gilts outperforming at the back end. Bunds have a bull-steepening bias but ranges are narrow. Peripheral spreads tighten a touch with long-end Italy outperforming peers. In commodities, Crude futures drift higher in muted trade. WTI is up 0.25% near $80.70, Brent trades just shy of a $84-handle. Spot gold remains range-bound near $1,760/oz. Base metals are mixed with LME lead and nickel holding small gains, copper and aluminum in the red. Looking at the day ahead, central bank speakers include the Fed’s Vice Chair Clarida,Bostic and Barkin, as well as theECB’s President Lagarde, Makhlouf, Knot, Villeroy, Lane and Elderson. Data highlights from the US include the JOLTS job openings for August, and the NFIB’s small business optimism index for September which came in at 99.1, below last month's 100.1. The IMF will be releasing their latest World Economic Outlook. Market Snapshot S&P 500 futures little changed at 4,351.50 STOXX Europe 600 down 0.6% to 454.90 MXAP down 0.9% to 194.41 MXAPJ down 1.0% to 635.42 Nikkei down 0.9% to 28,230.61 Topix down 0.7% to 1,982.68 Hang Seng Index down 1.4% to 24,962.59 Shanghai Composite down 1.2% to 3,546.94 Sensex little changed at 60,149.85 Australia S&P/ASX 200 down 0.3% to 7,280.73 Kospi down 1.4% to 2,916.38 German 10Y yield fell 6 bps to -0.113% Euro up 0.1% to $1.1565 Brent Futures up 0.4% to $84.01/bbl Gold spot up 0.2% to $1,757.84 U.S. Dollar Index little changed at 94.29 Top Overnight Headlines from Bloomberg The EU drew record demand for its debut green bond, in the sector’s biggest-ever offering. The bloc registered more than 135 billion euros ($156 billion) in orders Tuesday for a sale of 12 billion euros of securities maturing in 2037 Investors are dumping negative-yielding debt at the fastest pace since February as concerns about inflation and reduced central bank stimulus propel global interest rates higher French President Emmanuel Macron unveiled a 30-billion-euro ($35 billion) plan to create the high-tech champions of the future and reverse years of industrial decline in the euro area’s second-largest economy British companies pushed the number of workers on payrolls above pre-coronavirus levels last month, an indication of strength in the labor market that may embolden the Bank of England to raise interest rates. As the Biden administration and governments around the world celebrate another advance toward an historic global tax accord, an obscure legal question in the U.S. threatens to tear it apart Chinese property developers are suffering credit rating downgrades at the fastest pace in five years, as a recent slump in new-home sales adds to concerns about the sector’s debt woes German investor confidence declined for a fifth month in October, adding to evidence that global supply bottlenecks and a surge in inflation are weighing on the recovery in Europe’s largest economy Social Democrat Olaf Scholz’s bid to succeed Angela Merkel as German chancellor is running into its first test as tensions emerge in talks to bridge policy differences with the Greens and pro-business Free Democrats A more detailed breakdown of global markets from Newsquawk Asian equity markets traded mostly lower following the indecisive mood stateside where the major indices gave back initial gains to finish negative amid lingering inflation and global slowdown concerns, with sentiment overnight also hampered by tighter Beijing scrutiny and with US equity futures extending on losses in which the Emini S&P retreated beneath its 100DMA. ASX 200 (-0.3%) was subdued as weakness in energy, tech and financials led the declines in Australia and with participants also digesting mixed NAB business survey data. Nikkei 225 (-0.9%) was on the backfoot after the Japan Center for Economic Research noted that GDP contracted 0.9% M/M in August and with retailers pressured after soft September sales updates from Lawson and Seven & I Holdings, while the KOSPI (-1.4%) was the laggard on return from holiday with chipmakers Samsung Electronics and SK Hynix subdued as they face new international taxation rules following the recent global minimum tax deal. Hang Seng (-1.4%) and Shanghai Comp. (-1.3%) adhered to the downbeat picture following a continued liquidity drain by the PBoC and with Beijing scrutinising Chinese financial institutions’ ties with private firms, while default concerns lingered after Evergrande missed yesterday’s payments and with Modern Land China seeking a debt extension on a USD 250mln bond to avoid any potential default. Finally, 10yr JGBs eked minimal gains amid the weakness in stocks but with demand for bonds limited after the recent subdued trade in T-note futures owing to yesterday’s cash bond market closure and following softer results across all metrics in the 30yr JGB auction. Top Asian News Alibaba Stock Revival Halted on Concerns of Rising Bond Yields Iron Ore Rally Pauses as China Steel Curbs Cloud Demand Outlook China’s Star Board Sees Rough Start to Fourth Quarter: ECM Watch Citi Lists Top Global Stock Picks for ‘Disruptive Innovations’ European bourses kicked the day off choppy but have since drifted higher (Euro Stoxx 50 -0.4%; Stoxx 600 Unch) as the region remains on standby for the next catalyst, and as US earnings season officially kicks off tomorrow – not to mention the US and Chinese inflation metrics and FOMC minutes. US equity futures have also nursed earlier losses and reside in relatively flat territory at the time of writing, with broad-based performance seen in the ES (Unch), NQ (+0.2%), RTY (-0.2%), YM (Unch). From a technical standpoint, some of the Dec contracts are now hovering around their respective 100 DMAs at 4,346 for the ES, 14,744 for the NQ, whilst the RTY sees its 200 DMA at 2,215, and the YM topped its 21 DMA at 34,321. Back to Europe, cash markets see broad-based downside with the SMI (-0.1%) slightly more cushioned amid gains in heavyweight Nestle (+0.6%). Sectors kicked off the day with a defensive bias but have since seen a slight reconfiguration, with Real Estate now the top performer alongside Food & Beverages, Tech and Healthcare. On the flip side, Basic Resources holds its position as the laggard following yesterday's marked outperformance and despite base metals (ex-iron) holding onto yesterday's gains. Autos also reside at the bottom of the bunch despite constructive commentary from China's Auto Industry Body CAAM, who suggested the chip supply shortage eased in China in September and expected Q4 to improve, whilst sources suggested Toyota aims to make up some lost production as supplies rebound. In terms of individual movers, GSK (+2.3%) shares spiked higher amid reports that its USD 54bln consumer unit has reportedly attracted buyout interest, according to sources, in turn lifting the FTSE 100 Dec future by 14 points in the immediacy. Elsewhere, easyJet (-1.9%) gave up its earlier gains after refraining on guidance, and despite an overall constructive trading update whereby the Co. sees positive momentum carried into FY22, with H1 bookings double those in the same period last year. Co. expects to fly up to 70% of FY19 planned capacity in FY22. In terms of commentary, the session saw the Germany ZEW release, which saw sentiment among experts deteriorate, citing the persisting supply bottlenecks for raw materials and intermediate products. The release also noted that 49.1% of expects still expect inflation to rise further in the next six months. Heading into earnings season, experts also expect profits to go down, particularly in export-tilted sectors such a car making, chemicals and pharmaceuticals. State-side, sources suggested that EU antitrust regulators are reportedly likely to open an investigation into Nvidia's (+0.6% Pre-Mkt) USD 54bln bid from Arm as concessions were not deemed sufficient. Top European News Soybeans Near 10-Month Low as Supply Outlook Expected to Improve EasyJet Boosts Capacity as Travel Rebound Gathers Pace Currency Traders Are Betting the BOE Is About to Make a Mistake Citi Lists Top Global Stock Picks for ‘Disruptive Innovations’ In FX, the Buck has reclaimed a bit more lost ground in consolidatory trade rather than any real sign of a change in fundamentals following Monday’s semi US market holiday for Columbus Day and ahead of another fairly light data slate comprising NFIB business optimism and JOLTS. However, supply awaits the return of cash Treasuries in the form of Usd 58 bn 3 year and Usd 38 bn 10 year notes and Fed commentary picks up pace on the eve of FOMC minutes with no less than five officials scheduled to speak. Meanwhile, broad risk sentiment has taken a knock in wake of a late swoon on Wall Street to give the Greenback and underlying bid and nudge the index up to fresh post-NFP highs within a 94.226-433 band. NZD/AUD - A slight change in fortunes down under as the Kiwi derives some comfort from the fact that the Aud/Nzd has not breached 1.0600 to the upside and Nzd/Usd maintaining 0.6950+ status irrespective of mixed NZ electric card sales data, while the Aussie takes on board contrasting NAB business conditions and confidence readings in advance of consumer sentiment, with Aud/Usd rotating either side of 0.7350. EUR/CAD/GBP/CHF/JPY - All rangy and marginally mixed against their US counterpart, as the Euro straddles 1.1560, the Loonie meanders between 1.2499-62 with less fuel from flat-lining crude and the Pound tries to keep sight of 1.3600 amidst corrective moves in Eur/Gbp following a rebound through 0.8500 after somewhat inconclusive UK labour and earnings data, but hardly a wince from the single currency even though Germany’s ZEW survey missed consensus and the institute delivered a downbeat assessment of the outlook for the coming 6 months. Elsewhere, the Franc continues to hold within rough 0.9250-90 extremes and the Yen is striving to nurse outsize losses between 113.00-50 parameters, with some attention to 1 bn option expiries from 113.20-25 for the NY cut. Note also, decent expiry interest in Eur/Usd and Usd/Cad today, but not as close to current spot levels (at the 1.1615 strike in 1.4 bn and between 1.2490-1.2505 in 1.1 bn respectively). SCANDI/EM - The Nok and Sek have bounced from lows vs the Eur, and the latter perhaps taking heed of a decline in Sweden’s registered jobless rate, but the Cnh and Cny remain off recent highs against the backdrop of more Chinese regulatory rigour, this time targeting state banks and financial institutions with connections to big private sector entities and the Try has thrown in the towel in terms of its fight to fend off approaches towards 9.0000 vs the Usd. The final straw for the Lira appeared to be geopolitical, as Turkish President Erdogan said they will take the necessary steps in Syria and are determined to eliminate threats, adding that Turkey has lost its patience on the attacks coming from Syrian Kurdish YPG controlled areas. Furthermore, he stated there is a Tal Rifaat pocket controlled by YPG below Afrin and that an operation could target that area which is under Russian protection. However, Usd/Try is off a new ATH circa 9.0370 as oil comes off the boil and ip came in above forecast. In commodities, WTI and Brent front-month futures are choppy and trade on either side of the flat mark in what is seemingly some consolidation and amid a distinct lack of catalysts to firmly dictate price action. The complex saw downticks heading into the European cash open in tandem with the overall market sentiment at the time, albeit the crude complex has since recovered off worst levels. News flow for the complex has also remained minimal as eyes now turn to any potential intervention by major economies in a bid to stem the pass-through of energy prices to consumers heading into winter. On that note, UK nat gas futures have been stable on the day but still north of GBP 2/Thm. Looking ahead, the weekly Private Inventory data has been pushed back to tomorrow on account of yesterday's Columbus Day holiday. Tomorrow will also see the release of the OPEC MOMR and EIA STEO. Focus on the former will be on any updates to its demand forecast, whilst commentary surrounding US shale could be interesting as it'll give an insight into OPEC's thinking on the threat of Shale under President Biden's "build back better" plan. Brent Dec trades on either side of USD 84/bbl (vs prev. 83.13-84.14 range) whilst WTI trades just under USD 81/bbl after earlier testing USD 80/bbl to the downside (USD 80-80.91/bbl range). Over to metals, spot gold and silver hold onto modest gains with not much to in the way of interesting price action, with the former within its overnight range above USD 1,750/oz and the latter still north of USD 22.50/oz after failing to breach the level to the downside in European hours thus far. In terms of base metals, LME copper is holding onto most of yesterday's gains, but the USD 9,500/t mark seems to be formidable resistance. Finally, Dalian and Singapore iron ore futures retreated after a four-day rally, with traders citing China's steel production regaining focus. US Event Calendar 6am: Sept. SMALL BUSINESS OPTIMISM 99.1,  est. 99.5, prior 100.1 10am: Aug. JOLTs Job Openings, est. 11m, prior 10.9m 11:15am: Fed’s Clarida Speaks at IIF Annual Meeting 12:30pm: Fed’s Bostic Speaks on Inflation at Peterson Institute 6pm: Fed’s Barkin Interviewed for an NPR Podcast DB's Jim Reid concludes the overnight wrap It’s my wife’s birthday today and the big treat is James Bond tomorrow night. However, I was really struggling to work out what to buy her. After 11.5 years together, I ran out of original ideas at about year three and have then scrambled round every year in an attempt to be innovative. Previous innovations have seen mixed success with the best example being the nearly-to-scale oil portrait I got commissioned of both of us from our wedding day. She had no idea and hated it at the closed eyes big reveal. It now hangs proudly in our entrance hall though. Today I’ve bought her a lower key gamble. Some of you might know that there is a US website called Cameo that you can pay famous people to record a video message for someone for a hefty fee. Well, all her childhood heroes on it were seemingly too expensive or not there. Then I saw that the most famous gymnast of all time, Nadia Comăneci, was available for a reasonable price. My wife idolised her as a kid (I think). So after this goes to press, I’m going to wake my wife up with a personalised video message from Nadia wishing her a happy birthday, saying she’s my perfect ten, and praising her for encouraging our three children to do gymnastics and telling her to keep strong while I try to get them to play golf instead. I’m not sure if this is a totally naff gift or inspired. When I purchased it I thought the latter but now I’m worried it’s the former! My guess is she says it’s naff, appreciates the gesture, but calls me out for the lack of chocolates. Maybe in this day and age a barrel of oil or a tank of petrol would have been the most valuable birthday present. With investor anticipation continuing to build ahead of tomorrow’s CPI release from the US, yesterday saw yet another round of commodity price rises that’s making it increasingly difficult for central banks to argue that inflation is in fact proving transitory. You don’t have to be too old to remember that back in the summer, those making the transitory argument cited goods like lumber as an example of how prices would begin to fall back again as the economy reopened. But not only have commodity aggregates continued to hit fresh highs since then, but lumber (+5.49%) itself followed up last week’s gains to hit its highest level in 3 months. Looking at those moves yesterday, it was a pretty broad-based advance across the commodity sphere, with big rises among energy and metals prices in particular. Oil saw fresh advances, with WTI (+1.47%) closing above $80/bbl for the first time since 2014, whilst Brent Crude (+1.53%) closed above $83/bbl for the first time since 2018. Meanwhile, Chinese coal futures (+8.00%) hit a record after the flooding in Shanxi province that we mentioned in yesterday’s edition, which has closed 60 of the 682 mines there, and this morning they’re already up another +6.41%. So far this year, the region has produced 30% of China’s coal supply, which gives you an idea as to its importance. And when it came to metals, aluminium prices (+3.30%) on the London Metal Exchange rose to their highest level since the global financial crisis, whilst Iron Ore futures in Singapore jumped +7.01% on Monday, and copper was also up +2.13%. The one respite on the inflation front was a further decline in natural gas prices, however, with the benchmark European future down -2.73%; thus bringing its declines to over -47% since the intraday high that was hit only last Wednesday. With commodity prices seeing another spike and inflation concerns resurfacing, this proved bad news for sovereign bonds as investors moved to price in a more hawkish central bank reaction. Yields in Europe rose across the continent, with those on 10yr bunds up +3.0bps to 0.12%, their highest level since May. The rise was driven by both higher inflation breakevens and real rates, and leaves bund yields just shy of their recent post-pandemic closing peak of -0.10% from mid-May. If they manage to surpass that point, that’ll leave them closer to positive territory than at any point since Q2 2019 when they last turned negative again. It was a similar story elsewhere, with 10yr yields on OATs (+2.6bps), BTPs (+3.9bps) and gilts (+3.1bps) likewise reaching their highest level in months. The sell-off occurred as money markets moved to price in further rate hikes from central banks, with investors now expecting a full 25 basis point hike from the Fed by the end of Q3 2022. It seems like another era, but at the start of this year before the Georgia Senate race, investors weren’t even pricing in a full hike by the end of 2023, whereas they’re now pricing in almost 4. So we’ve come a long way over 2021, though pre-Georgia the consensus CPI forecast on Bloomberg was just 2.0%, whereas it now stands at 4.3%, so it does fit with the story of much stronger-than-expected inflation inducing a hawkish response. Yesterday’s repricing came alongside a pretty minimal -0.15% move in the Euro versus the dollar, but that was because Europe was also seeing a similar rates repricing. Meanwhile, the UK saw its own ramping up of rate hike expectations, with investors pricing in at least an initial 15bps hike to 0.25% happening by the December meeting in just two months’ time. Overnight in Asia, stocks are trading in the red with the KOSPI (-1.46%), Shanghai Composite (-1.21%), Hang Seng (-1.20%), the Nikkei (-0.93%) and CSI (-0.82%) all trading lower on inflation concerns due to high energy costs and aggravated by a Wall Street Journal story that Chinese President Xi Jinping is increasing scrutiny of state-run banks and big financial institutions with inspections. Furthermore, there were signs of a worsening in the Evergrande debt situation, with the firm missing coupon payments on a 9.5% note due in 2022 and a 10% bond due in 2023. And there were fresh indications of a worsening situation more broadly, with Sinic Holdings Group Co. saying it doesn’t expect to pay the principal or interest on a $250m bond due on October 18. Separately in Japan, Prime Minister Fumio Kishida said on Monday that he will raise pay for public workers and boost tax breaks to firms that boost wages to try and improve the country’s wealth distribution. Back to yesterday, and the commodity rally similarly weighed on thin-volume equity markets, though it took some time as the S&P 500 had initially climbed around +0.5% before paring back those gains to close down -0.69%. Before the late US sell-off, European indices were subdued, but the STOXX 600 still rose +0.05%, thanks to an outperformance from the energy sector (+1.49%), and the STOXX Banks Index (+0.13%) hit a fresh two-year high as the sector was supported by a further rise in yields. On the central bank theme, we heard from the ECB’s chief economist, Philip Lane, at a conference yesterday, where he said that “a one-off shift in the level of wages as part of the adjustment to a transitory unexpected increase in the price level does not imply a trend shift in the path of underlying inflation.” So clearly making a distinction between a more persistent pattern of wage inflation, which comes as the ECB’s recent forward guidance commits them to not hiking rates “until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon”, as well as having confidence that “realised progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilising at two per cent over the medium term”. Turning to the political scene, Brexit is likely to be in the headlines again today as the UK’s Brexit negotiator David Frost gives a speech in Lisbon where he’s expected to warn that the EU’s proposals on the Northern Ireland Protocol are insufficient. That comes ahead of a new set of proposals that are set to come from the EU tomorrow, with the two sides disagreeing on the extent of border controls required on trade from Northern Ireland with the rest of the UK. Those controls were put in place as part of the Brexit deal to prevent a hard border being put up between Northern Ireland and the Republic of Ireland, whilst also preserving the integrity of the EU’s single market. But the UK’s demands for adjustments have been met with opposition by the EU, and speculation has risen that the UK could trigger Article 16, which allows either side to take unilateral safeguard measures, if the protocol’s application “leads to serious economic, societal or environmental difficulties that are liable to persist, or to diversion of trade”. On the data front, there wasn’t much data to speak of with the US holiday, but Italy’s industrial production contracted by -0.2% in August, in line with expectations. To the day ahead now, andcentral bank speakers include the Fed’s Vice Chair Clarida,Bostic and Barkin, as well as theECB’s President Lagarde, Makhlouf, Knot, Villeroy, Lane and Elderson. Data highlights from the US include the JOLTS job openings for August, and the NFIB’s small business optimism index for September. In Europe, there’s also UK unemployment for August and the German ZEW Survey for October. Lastly, the IMF will be releasing their latest World Economic Outlook.     Tyler Durden Tue, 10/12/2021 - 07:56.....»»

Category: personnelSource: nytOct 12th, 2021

Rabo: The Market Might Soon Start Worrying How Contagious "Sickouts" Might Prove To Be

Rabo: The Market Might Soon Start Worrying How Contagious "Sickouts" Might Prove To Be By Michael Every of Rabobank US markets were closed yesterday. However, there was no lack of action out East. Indeed, Monday was a real zāo gāo (too bad; how terrible; what bad luck) day in China: the kind of trading that even worries the many Banana Splits among market analysts (“Tra la la; Tra la la la”). Evergrande contagion continued to spread. If you cut off funding to a highly leveraged sector, and it sees sales collapse too, bad things tend to happen to liquidity. Specifically, Evergrande once again did not pay interest on US dollar debt due on Monday, while two more small Chinese developers pushed their debt repayment date and offered only 5% of the principal required. Generally, junk bond yields surged. The FTSE Chinese High-Yield index has now tumbled to 275.4, the lowest since late 2015, when back in May it was at 375.4, and looks like a falling knife. Chinese government bond yields didn’t benefit, rising slightly, and more so down the curve. The Wall Street Journal is stressing details of a CCP action I flagged when launched, and which Wall Street originally snoozed through: the Central Commission for Discipline Inspection investigation into banks. The WSJ summary: “Inspections aim to ensure full Communist Party control over what is seen as the lifeblood of the economy, say people familiar with the plan.” Specifically, “zeroing in on the ties that China’s state banks and other financial stalwarts have developed with big private-sector players, expanding [the] push to curb capitalist forces in the economy…[to]…focus on whether state-owned banks, investment funds, and financial regulators have become too chummy with private firms.” In other words, for the “Tra la la” gang, just what Marxist theory stresses: state capital will be channelled into ‘productive’ rather than ‘unproductive’ or ‘fictitious’ areas. Is that good for high-yield bonds or for Chinese bank stocks? And where will the private sector get capital from - foreigners with a penchant for falling knives? There is certainly no shortage of them: how else does one split a banana? Chinese coal prices soared due to both demand and supply issues. Iron ore prices are also up 50% all of a sudden too – just as demand for steel for property construction is uncertain to say the least. The broader implications for what PPI inflation will do from here due to coal prices are deeply concerning. So is the thought of that all being passed on to CPI – which naturally won’t be allowed to happen. Yet someone else is then swallowing the margin compression or outright losses instead. Can I get a ‘Tra la la’? The Global Times is also doing its usual job, but this time threatening war with India again (“New Delhi needs to be clear about one thing: it will not get the border the way it wants. If it starts a war, it will definitely lose. Any political manoeuvring and pressure will be ignored by China.”) PLA tank exercises were reportedly held last night. Of course, one would logically presume there are more than enough fish for China to fry on the domestic and another geographic front….so ’Tra la la?’ Notably, sabre-rattling, the property sector, and ‘common prosperity’ aside --given the West has shown no *serious* sign of a policy shift away from asset-bubbles and towards redistribution or financial regulation-- these are global market problems. In particular, oil prices continue to move higher, holding above $80 per barrel, and if Chinese coal prices continue to rise at the rate they are now, it suggests risks of a second wind to the spike in gas prices in Europe now off recent peaks. (Far more so if Moscow decides to show the EU who heats it in winter.) The US has its own specific problems, of course. SouthWest cancelled 1,800 flights yesterday, which the airline says had nothing at all to do with ‘sickouts’ by Covid vaccine holdouts. If that is the case, “air traffic control problems” and “weather disruption” means things should go back to normal from today. If not, the market might start worrying about how contagious ‘sickouts’ might prove to be: imagine if they hit already-strained ports, or trains, or trucks, for example. Meanwhile, the DC-insider school magazine, Politico.com, bewails: “Dems thought giving voters cash was the key to success. So what happened?”, upending yet another mean-reversion hedging tactic for markets and politicians against a backdrop of structural change; and it adds: “‘The president’s decline is alarming’: Biden trapped in coronavirus malaise”, suggesting years of lame-duckery if things don’t turn-around soon in Congress. Or on supply chains. Yet that is small beer compared to the Washington Post op-ed proclaiming “Our constitutional crisis is already here”, stressing “a reasonable chance over the next three to four years of incidents of mass violence, a breakdown of federal authority, and the division of the country into warring red and blue enclaves.” Zāo Gāo-y Wow-y! #NeverTrump seems to have started very early this electoral cycle and appears to be prepared to throw the steering wheel out the window well in advance. Expect associated political risk to rise as we get closer to 2024 – but for now interstate rivalry is on the football field, and there is more than enough to worry about everywhere else. That the US Dollar is still on the front foot, apart from against the is-it-pegged-again-and-they-forgot-to-tell-us? CNY must imply a great deal about the general zāo gāo everywhere else; or that the Fed is about to make an historic error; or both. Tyler Durden Tue, 10/12/2021 - 08:44.....»»

Category: personnelSource: nytOct 12th, 2021

The 5 best kitchen knives we tested in 2021

These knives are the only ones you need in your kitchen. Table of Contents: Masthead Sticky Putting your knife set together piecemeal is the best way to go, and a quality chef's knife is absolutely essential. The Wusthof Classic Ikon 8" Chef's Knife is our favorite, but we also like Victorinox, Shun, and more. There may be no more important tool in your kitchen than your chef's knife. It is the one-stop-shop for all of your slicing, chopping, dicing, and trimming needs. Sure, there are other kitchen knives well worth their steel, but we can't stress this enough: if you're going to put your money into any one knife, or if you're considering buying a knife set, think about a single, high-quality chef's knife to start.While we do offer a guide to the best knife sets - and recommend some budget-friendly options like the Victorinox Fibrox Pro set (a staple in many commercial kitchens) - you can end up with a lot of filler pieces if you go the pre-packaged route. Everyone we've spoken with on the matter, from famed butcher Pat LaFrieda to late gourmand and chef Anthony Bourdain, has been quick to the point: most knife sets are a waste of money. And having knocked around enough commercial bars and kitchens myself, I can't agree more. Rarely do you see a chef, sous chef, or line cook, fiddling with anything but a chef's knife.For this guide, we focused on chef's knives for the reasons above, but we also ran through dozens of paring, boning, utility, and bread knives to recommend one of each of those as well. Here are the best kitchen knives of 2021Best overall: Wusthof Classic Ikon 8" Chef's KnifeBest budget: Victorinox Fibrox Pro 8" Chef's KnifeBest paring: Victorinox 3.25" Straight Paring KnifeBest bread: Victorinox Fibrox Pro 10.25" Serrated Curved Bread KnifeBest utility/boning: Shun Sora 6" The best chef's knife overall Owen Burke/Insider Hefty but balanced, The traditional German design of Wüsthof's Classic Ikon 8" Chef's Knife suits most hands and stands up to just about every kitchen task.Length: 6", 8", 10"Blade: High-carbon stainless steelHRC: 58Handle: Polyoxymethylene (POM)Pros: Great for chopping and dicing, agreeable handle for most, rust- and chip-resistantCons: Requires regular sharpeningThe Wüsthof Classic Ikon Chef's Knife is the most traditional western knife there is: It's big, it's heavy, and it's made with relatively soft, rust-, and chip-resistant stainless steel. As far as quality knives go, this is the knife we've found to handle the most difficult tasks while also still offering agility and precision.Before we go further, we should mention one caveat: Ahead of investing in a chef's knife, know that of all the kitchen knives you might purchase, it is the most personal choice you're going to have to make.No matter which knife you choose, your chef's knife is the one you'll rely upon most. It offers the most surface area for larger chopping and slicing jobs, and it also handles the most force for hardier root vegetables, meat, and poultry. Different designs might favor chopping and dicing over slicing (and vice-versa), but we like the only slightly rounded belly of the Wüsthof Classic Ikon, which strikes a happy medium for the two tasks.We also like the modified handle of the Ikon series knives in general, which isn't quite German, but not quite Japanese, either. It seems to be a hybrid of the two and fits most hands comfortably (we placed our top pick in several different palms).All in all, this is a great knife for the average household in which kitchen knives aren't generally taken care of, and no matter who gets a hold of this thing or what they do with or to it, you'll be able to bring it back up to snuff. That and the fact that it's a relatively thin and agile blade as far as German knives go make it the best all-around pick based on our testing. The best budget chef's knife Owen Burke/Insider Popular in busy commercial kitchens and homes alike, Victorinox's Fibrox has a highly ergonomic handle and stands up to rough use like few others.Length: 7.9"Blade: High-carbon stainless steelHRC: 55Handle: Thermoplastic elastomers (TPE)Pros: Maneuverable, comfortable handle, decent edge retentionCons: Not razor-sharp straight out of the factory, takes some work to sharpen, not perfectly balanced Victorinox's entire Fibrox line is a favorite in commercial kitchens because its knives are among the few that can pass through numerous line cooks' hands and accidental trips through the dishwasher unscathed. The Fibrox Chef's Knife is budget-friendly, but it's also perfect for short-term rentals, first apartments, and more generally, people who don't necessarily want to spend time taking care of their kitchen tools. My kitchen sees a lot of "chefs," and for that reason, I have my knives squirreled away separately from the communal kitchen knives, which are entirely from Victorinox. This way, I don't have to worry about someone slicing a lemon and leaving an expensive knife on the counter, not only wet but coated in citric acid, or trying to pry open a lid via a Japanese blade, which is horrific to think about. And even though the Fibrox Chef's Knife has withstood the abuse mentioned above (and more), there's neither a single stain nor chip on it. Sure, it's a bit scratched (coarse sponges are terrible for stainless steel, but more on care below), but all I do is give it a sharpening every couple of months, which with diligence gets it sharper than it was from the factory, and it performs impressively.We also find it to be a little on the safer side thanks to the ultra-grippy Fibrox handle, which is easy to hold even when wet or greasy.Read more about the Fibrox line in our guide to the best knife sets (even though we generally don't recommend sets, this one is an exception). The best paring knife Owen Burke/Insider A paring knife is a simple tool for lighter tasks, and Victorinox's 3.25" Straight Paring Knife offers everything you need of it and nothing you don't.Length: 3.25"Blade: 440 stainless steelHRC: 58-60Handle: Thermoplastic elastomers (TPE)Pros: Resilient, relatively rust-proof, dishwasher-safeCons: Very lightweight, requires regular sharpeningYou really, really don't need to spend a fortune on a paring knife. We think Victorinox's 3.25" Straight Paring Knife does the job about as well as anything because it's not the blade you're going to rely on for heavier-duty tasks.  Hulling strawberries, slicing a small bit of garlic, and peeling and seeding fruit is about all you're going to use it for, and while they're not the most demanding tasks, this knife handles them every bit as well as you'd hope anything would. Sure, you can spend a lot more and get a weightier paring knife, but it's far from necessary.And while, again, it's about as cheap as any kitchen knife gets, it's also much more resilient than pricier picks. Years ago, one of our testers admitted to running it through the dishwasher regularly, and has found only one small speck of rust since. The only other issue that arises with this knife is that you'll have to sharpen it as regularly as our budget pick for a chef's knife. Depending upon how often you put it to work, that could range from every month to every few months. Otherwise, keep this knife clean and dry like any other and it will work and last like any other. The best bread knife Owen Burke/Insider A long, thin blade with shallow serrations makes the surprisingly affordable Victorinox Fibrox 10" Bread Knife a precise tool for slicing bread and more.Length: 10.25"Blade: 440 stainless steelHRC: 55Handle: Thermoplastic elastomers (TPE)Pros: Nicely weighted (for a budget-friendly knife), great gripCons: Not as heavy as top-of-the-line bread knives, not as sharp out of the factoryIt's debatable whether you want to spend much on a bread knife depending on how often you'll be using it, but Victorinox's Fibrox Bread Knife is a quality tool at a reasonable price. It withstands the same amount of rough use as the rest of our recommendations from that line, but thanks to the larger handle and longer blade it carries a little more weight than the more budget-friendly options we considered. In our tests, which involved slicing less-than-forgiving, homemade, no-knead bread, it fared as well as everything we tried until we reached the $200 range, which is an absurd price for a bread knife for most people. That pretty much settled it. We also can't lend enough praise to the Fibrox handles in general, which everyone seems to appreciate, and apart from their ergonomic qualities, instill a sense of security with their non-slip grips.Because this blade is not only thin but also only shallowly serrated, you won't have as much trouble sharpening it on your own as you would with, say, a deep-scalloped one that doesn't take to a simple pull-through sharpener as well. It also turns out that this knife isn't bad for slicing softer fruits and carving meat and poultry.If you're looking for something a little more on the affordable side, our previous pick (which we retested against this one) is the Mercer Culinary Millennia Wavy Edge 10-inch Wide Bread Knife. It has a slightly thicker blade and a deeper serration, so it's not going to be as precise, but it's got a similar handle and costs half the price. The best utility knife Owen Burke/Insider With VG Max steel wrapped in layered Damascus steel, Shun's Classic 6" Utility Knife is sharper and retains a better edge than most German-style knives, and is perfect for trimming and more precise cuts.Length: 6"Blade: VG-Max Damascus steelHRC: 62Handle: Pakka (plastic and wood composite)Pros: Extremely sharp, great edge retention, rust-resistant, very well-balancedCons: Slightly brittle and easier to chip than German steel, small, D-shaped handle favors right-handersA utility knife needs to be extra sharp for more precise cuts and trimming without tearing foods, and Shun's Classic 6" Utility Knife uses VG-Max Damascus steel, effectively offering the best of both worlds between Japanese-style and German-style blades.Damascus steel is made by forging and hammering carbon-rich steel (in this case, VG-Max) at a low temperature, cranking up the heat, and then cooling it abruptly. The material is known for its flexibility and corrosion resistance, not to mention its signature swirly "damask" pattern that tends to woo one and all. While its beauty is something to behold, the important takeaway is that you get a knife that holds a stronger edge than carbon steel but flexes better than stainless steel. While we veered away from Japanese steel for our chef's knife top pick, and didn't recommend a Damascus or VG Max steel option because of the cost, a smaller utility knife from Shun makes that type of pricier steel more affordable.Apart from being remarkably more rust-resistant than other Japanese and Japanese-style knives we tried, this knife isn't so brittle that we've had trouble with chipping or dinging. Still, you'll want to keep it away from harder foods and surfaces, and especially bones. Where this knife shines is with smaller, in-between tasks where a chef's knife is overkill and a paring knife is painfully laborious. Think slicing tomatoes or dicing shallots. It's not a necessary knife for everyone, but behind those two knives and a bread knife, it's the next most important one for most kitchens. On that note, it did offer enough flexibility for me to not necessarily fillet, but skin and trim boneless meat. Shun's knives are made with a material known as Pakka wood, which is really a wood-and-plastic composite that looks an awful lot like walnut. Purists might cringe, but it gives the look without bringing along the worry of the handle splitting.If you're really averse to owning a Japanese knife for one reason or another (either the handle or the extra care required), look to the utility knife version of our top-recommended chef's knife, the 6" Wüsthof Ikon. What else we tested Owen Burke/Insider Shun: Probably the most popular Japanese knife in the US, Shun offers relatively affordable VG- and Damascus-steel knives. Apart from recommending the brand's utility knife, one of my personal favorite knives is the 8" Chef's knife.Korin: Another mid-range Japanese knife similar to Shun, Korin is a favorite of Pat LaFrieda and Andrew Zimmern, and is competitive with Mac.J.A. Henckels: One of the veritable classics in German knives, J.A. Henckels' knives were a little thicker in the blade than our other picks, but you really can't go wrong here.Dexter-Russell: Similar to Victorinox's Fibrox series, Dexter-Russell offers a line of similarly iconic white-handled knives at a great price point, and which you'll find in commercial kitchens all over. We just found that the handles on the Fibrox knives are much grippier.Mac: This company makes an outstanding chef's knife, especially for the price. The only reason we couldn't recommend this as an overall pick was its delicacy. At the hands of most people, this knife isn't going to stay in great shape for long. If you care for your knives, on the other hand, we can't recommend it enough.Made In: These, like many other DTC-brand knives, are made with X50CrMoV15 steel and are a great deal for the price. Like the others, they didn't exactly wow us, but we found nothing really wrong with them, either. The rounded handle seems to work well with many hands.Material: These knives are made with "high-carbon" steel, but we wouldn't call it high-quality. They have a hybrid handle that should suit most hands, and they're easy enough to sharpen and perfectly serviceable knives.Misen: More X50CrMoV15 steel and a great deal for the price. These are extremely popular for a reason, and we like them plenty, too.Our Place: Another DTC brand making X50CrMoV15 steel blades, Our Place's knives are more than satisfactory. We liked the hybrid handle, but not as much as others. If the handle looks like it'll suit you, these are nicely designed and balanced knives.Steelport Knife Co.: This is a much fancier, carbon-steel option for someone who wants to invest in a gorgeous and impossibly sharp blade. We love it, but we also recognize that it requires care.  Our methodology Owen Burke/Insider We finely sliced tomatoes and onions with chef's knives, minced garlic and shallots with utility and paring knives, hulled strawberries with paring knives, and sliced hard-crusted no-knead bread with serrated slicing knives. We then dulled each blade by rapping them repeatedly on a glass cutting board (word to the wise, never use one of these) and returned to each knife's respective task to note any dulling or chipping.We also made sure to put each knife into as many different hands as possible, ranging from professional cooks to hobbyists.Lastly, we consulted a series of chefs, butchers, and metallurgists, including Chef Shola Olunloyo of Studio Kitchen, Pat LaFrieda, and Michael J Tarkanian, a professor of metallurgy at MIT.A word on Japanese knivesWe took Japanese knives out of the running for our top chef's knife pick. While they're a personal favorite, they're notoriously difficult to maintain, and therefore not suited for most kitchens. Simply put, if you're starting to invest in your kitchen knives, we don't want to recommend a fine knife that will easily be misused."High-carbon stainless steel" is a bit of a buzzword in reaction to the popularity of Japanese-style knives, which can attain notoriously sharper edges than their German-style counterparts. The delicacy of Japanese knives has to do with the hardness of the standard high-carbon stainless steel, which allows for a finer and sharper but proportionally brittler edge.Still, if you're the type of person who takes particularly good care of your tools (and aren't sharing a kitchen with someone who won't), you may prefer a Japanese knife. But know that they require meticulous cleaning and drying, as well as careful storage, or they'll end up with rusted and/or chipped blades.Other considerations:Edge retention: Our knife-testing process involved slicing fresh tomatoes and taking note of the ease with which each chef's knife handled the task. After we had sufficient data, we took each chef's knife to a glass cutting board and ran it over the surface 200 times. Some knives held their edge, others not so much. We looked at the edges after running the knives and noted if there were any visible changes. We then returned to the tomatoes, cutting a few more and seeing how much resistance we felt compared with the performance of the knives straight out of the packaging. Knives that held their edges passed on to further rounds of consideration.Alloy, and the HRC (hardness rating): We consulted several experts in the field, but the most informative source we encountered was Michael J Tarkanian, a professor of metallurgy at MIT. With his help, we were able to cut through the marketing and the scientific terminology behind different alloys and what allows a knife to retain an edge.We looked for a hardness rating of around 60 HRC, which offers great edge retention while still allowing for an edge of around 15 degrees (though up to 20 degrees, which is duller than 15, was still considered sufficient).Ergonomics: For a knife to work well, you have to be able to hold it comfortably in your hand. We asked several people to pick up knives and decide which ones were the easiest to grip; across the board, they went for the ones with heavier, rounded, almost bulbous handles.Balance: The weight of the handle and the blade is also somewhat critical. Pricier knives almost always offer better balance because that extra cost goes into using denser and often more desirable materials, like layered Damascus steel. A well-balanced knife with a good blade will cut through vegetables with minimal pressure, like our top pick from Wusthof. A not-so-well-balanced knife will take a little force to get started. What we look forward to testing Owen Burke/Insider We're looking forward to testing Santoku knives and more Japanese chef's knives for our next update. While they're superior in certain ways, they don't stand up to the rough handling that they'll endure at the hands of the average home cook, so we'll have separate picks coming soon. Until then, we're big fans of Shun, Global, Korin, and MAC. Just know that while you might not have to sharpen them as much as softer-steeled German blades, they're slightly more prone to rust (due to higher carbon levels) and chipping (due to their increased hardness).We're also going to recommend a boning knife for those who need to trim and debone meat but in the meantime, Victorinox's Fibrox Pro is an affordable option, and the Wüsthof Classic Ikon is a pricier step up which we like so far. FAQs Owen Burke/Insider How to choose a knifeThe most important thing about a knife, and especially a chef's knife, is how it fits in your hand. So long as you spend at least $50 on a chef's knife, it's going to be sharp (and sharpenable) enough to get most any job done. Decide what kind of handle you want first. German-style knives are generally more molded to the palm with a pronounced butt end, while Japanese-style knives are almost uniformly cylindrical and smaller. Both designs work for everyone; it just depends on the feel you prefer and, to some degree, how you hold the knife.The type of steel you choose should be based on the kind of care you're (realistically) going to give your knife. If you don't envision yourself sharpening and perfectly drying and storing your knife after every use, German stainless steel (e.g., 440, 420) is going to be much more forgiving, though softer and quicker to dull.If you are a tool fanatic and know that you'll take good care of your knives and are also confident that they won't find their way into the wrong hands, carbon steel is a great pick because it's incredibly sharp. Just know that it's likely to rust and chip more easily.In between, you have VG-10 and VG-Max (proprietary to Shun, but about the same as VG-10), which have added alloys (tungsten, vanadium) that make them a little more stain-resistant and less brittle. They're great for those who want a Japanese-style knife without having to care so devoutly for it.Then there's Damascus steel, which is made by forging and hammering carbon-rich steel at a low temperature, cranking up the heat, and then cooling it abruptly. Damascus steel is known for its flexibility and corrosion resistance, and we recommend it, but be wary of too-good-to-be-true deals. A lot of manufacturers will etch the mesmerizing swirls into a blade without performing the time-consuming and expensive hammering process.Why (or why not) buy a knife setIn general, things that come in sets tend to involve compromised quality, and often contain filler pieces. In the case of knife sets, you're probably going to receive a bunch of knives and other gadgets (including a large woodblock) that you may never use. A lot of newer (and older) DTC brands recognize that consumers are growing wiser and learning that sets are generally a ripoff. As a result, there are lots of two- to five-piece sets on the market. If you're looking in the budget range, we're all for them, and we've pretty much tried them all. The steel is almost always the same quality, so choose based on the handle style you like.Otherwise, though, sets don't make a lot of sense for most people. Invest in a chef's knife, first and foremost, with which, by the way, you can tackle all of your kitchen tasks, minus maybe slicing bread. Next, a paring knife is probably the most sensible purchase, but since it's not doing a lot of the heavy work, we say go cheap. That said, feel free to spend what you'd like; there is something to be said for a weightier, sharper blade in the case of every knife.A slicing and/or bread knife may or may not be important to you depending upon whether or not you consume much bread or slice much meat. You can find one that does the job for as little as $20, or, again, the sky's the limit. For most people, we like the $40-$60 range.Beyond the above, you're getting into specific tasks most people don't really take on at home. Fillet knives, boning knives, santoku knives, and shears are all further considerations. Even if you want all of those knives, you're still likely better off purchasing them piecemeal. It'll be more affordable, and you'll also be able to budget so that you can put your money where it counts. Glossary Owen Burke/Insider Heal: The corner of the blade where the edge meets the bolster.Edge: The sharpened, business side of the blade.Tang: The part of the blade that runs to or through the handle. "Full-tang" is a common term, which means the blade steel is a single piece of steel that runs through the handle.Rivets: The pins holding the handle together (more common in German handles).Bolster: Above the heel, a spacer where the blade meets the handle, and an area to grab or choke up on when performing finer tasks.Tip: The pointy, or front end of the knife opposite the handle.High-carbon steel: Steel with at least 0.55% carbon content.Stainless steel: An alloy of iron, chromium, and sometimes other metals. This is a very general term, but it's the basic steel with which German knives are made.VG10, VG-Max: A high-carbon steel blended with tungsten and vanadium, and sometimes other metals to lend flexibility and rust resistance.Damascus Steel: A two-plus-millennia-old process, Damascus steel is made by forging and hammering carbon-rich steel at a low temperature, cranking up the heat, and then cooling it abruptly, repeatedly (generally dozens of times). Damascus steel is known for its flexibility and corrosion resistance while still retaining a superior edge, which is why it is traditionally (and famously) used for samurai swords. Check out more related guides Too many knives. Owen Burke/Insider The best knife setsThe best knife sharpenersThe best cutting boardsThe best knife blocksThe best bushcraft and survival knives Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 11th, 2021

Here"s what to do if your Southwest Airlines flight is canceled, as the airline eliminates hundreds of more flights on Monday

Airline passengers have rights when flights are canceled and it can mean the difference between getting stranded and getting home. Southwest Airlines passengers checking in for their flight. Paul Hennessy/SOPA Images/LightRocket/Getty Southwest Airlines canceled thousands of flights last weekend that left some passengers stranded. Travelers with canceled flights are owed a refund and can push for hotel stays and alternate travel. Trip insurance can help get expenses reimbursed if it's due to a flight delay or cancelation. Southwest Airlines is still canceling flights after a weekend meltdown during which more than 1,700 flights were cut from the schedule.At least 365 flights have already been canceled for Monday, according to flight tracking company FlightAware, and more may be on the horizon as the airline recovers from a chaotic weekend. There's no foolproof method to avoid being stranded when flight cancellations and delays strike, but travelers should take precautions before heading to the airport to increase their chances of resolving airline-related issues. Here are 5 tips to deal with delayed and canceled flights. Know how to contact an airline A Southwest airport agent helping a passenger. Patrick T. Fallon /AFP/Getty Images At the airport, airline gate staff and customer service agents can help rebook flights in the event of a cancellation or delay. Travelers should find the closest customer service center as early as possible. Airline phone numbers are also available on their websites and apps; it can be worth saving those numbers into your phone's contact book ahead of time. Southwest's customer service phone number is 1-800-435-9792. The call center is open 24 hours a day and seven days a week. Southwest's baggage service phone number is 1-888-202-1024, group travel is 1-800-433-8747, and the Spanish language phone number is 1-800-826-6667. Social media also can be a useful resource - sending an early direct message to Southwest's Twitter can act as a virtual placeholder on the customer service line. Use an airline's mobile app or website to rebook Southwest Airlines' mobile application. Brenda Rocha - Blossom/Shutterstock.com Airlines have made it easier for passengers to rebook with a mobile app. Flight change fees will be waived in those cases and travelers, in theory, should be able to find and book backup flights. During high-traffic periods including ones following airline meltdowns, however, availability might be scarce as thousands of fellow passengers are also trying to rebook. If online means of rebooking aren't being helpful, talking to an airline representative is the next best bet. Know your traveler rights Southwest Airlines passengers checking in for their flight. Scott Olson/Getty Images Airlines must provide a refund to travelers who cancel their bookings outright, according to the Department of Transportation.Travel credits offered by the airline can often only be used on that airline, while a refund gives travelers additional freedom, whether it be to scrap a trip outright or rebook with a different airline. However, the airline may not be inclined to help once a booking is fully canceled and refunded.Travelers can also request vouchers for meals and hotel stays if the disruption to a trip is severe. In the latest case, Southwest is blaming issues outside of its control, however, so passengers might be limited in what they can get.Understand travel insurance and credit card coverage The Chase Sapphire Reserve and American Express Platinum travel credit cards. Jenny Cheng/Business Insider Certain travel credit cards including the Chase Sapphire Reserve and American Express Platinum Card have built-in trip insurance when you book with those cards. One event that may apply is if you can't reach your destination for at least 24 hours "due to severe weather (or another covered reason)," traveler insurer Allianz's website reads. But not all policies require a 24-hour delay. The "trip delay reimbursement" benefit on the Chase Sapphire Reserve provides reimbursement if your travel is delayed more than 6 hours or requires an overnight stay.This reporter used the reimbursement policy on a recent trip and was covered for all expenses. Settle in for a long wait - and know when to jump ship An airline traveler making a phone call. Phil Walter / Getty Remember that airlines will be handling the same issues for thousands of customers, as well as trying to return to its normal schedule. Long lines and waits will be incredibly common. Travelers might consider alternate means of transportation if flying doesn't look immediately possible. A rebooked flight might also be canceled or delayed as the airline gets back on its feet. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 11th, 2021

The Market Loves When a Problem is Resolved... or Postponed

The Market Loves When a Problem is Resolved... or Postponed The rebound rally that started yesterday afternoon continued on Thursday, as Congress agreed to a short-term debt ceiling extension. The major indices rose for a third straight session today and are now all in the green for the week as we get ready for the main event. The deal doesn’t solve the problem, of course, but it does delay the deadline to early December. Congress now has a lot more breathing room to get something done, compared to the October 18th deadline set by Treasury Secretary Janet Yellen. And investors can relax… about this issue at least. The NASDAQ rose 1.05% (or about 152 points) to 14,654.02. The index started this week with a more than 2% plunge on Monday as tech was getting shellacked, but it’s now up for the week heading into Friday. It’s all set for a nice reversal from last week’s stiff decline of more than 3%. The Dow rose 0.98% (or around 337 points) on Thursday to 34,754.94, while the S&P advanced 0.83% to 4399.76. “The bulls continued to buy into the relief rally as the debt ceiling issue is all but gone now. To follow up what I said yesterday, we are kicking the can down the road, but time is a negotiators friend,” said Jeremy Mullin in today’s Counterstrike. “I don’t think we go straight back to highs as there is too much supply chain risk for upcoming earnings.” Tomorrow is the main event of the week when the Government Employment Situation is released. The number could go a far way in helping the Fed decide when to start tapering asset purchases, which Chair Jerome Powell said “may soon be warranted” in late September. Last month’s report was surprisingly soft with only 235K jobs added, compared to expectations of more than 700K. The market sees about 500,000 jobs added in September. We’ve already received some positive jobs data recently, including today’s jobless claims number of 326,000 for last week. The result was better than expectations of 345K and an improvement on the previous week’s 364K. Furthermore, yesterday’s ADP employment report beat forecasts as well. Of course, these other reports are not necessarily harbingers of the big number tomorrow. So let’s see what happens… Today's Portfolio Highlights: Commodity Innovators: A surge in fertilizer prices really turned things around for CF Industries (CF), which was almost stopped out not too long ago. But today Jeremy sold the stock for 21.2% in two months and considers it a “lucky win”. The new buy is American staple Deere & Company (DE), which you already know is the largest producer of agricultural equipment and manufacturing agricultural machinery. This Zacks Rank #1 (Strong Buy) reported a positive surprise of more than 18% in its last quarterly report, but shares are down about 15% from highs. That gives the editor a great entry point. He considers this a long-term hold and will collect a dividend of 1.25%. See the complete write-up for more on today's action. Home Run Investor: This portfolio sold five positions earlier this week, so it’s got some space to fill. On Thursday, Brian picked up Timken Steel Corp. (TMST), which he considers “a little defensive in nature but also has good growth numbers”. This Zacks Rank #1 (Strong Buy) easily beat earnings estimates for three straight quarters, amassing an average surprise of 30% over the past four quarters. The editor also thinks that TMST has a great valuation, especially for a company that posted topline growth of 112% in its most recent report. Make sure to read the complete commentary for more on this new pick.   Counterstrike: Surging natural gas prices made a lot of money for Jeremy in his Commodity Traders portfolio... and now he plans to profit from the decline. The editor thinks that natural gas prices have topped out, so he bought a 5% position in ProShares UltraShort Bloomberg Natural Gas (KOLD) on Thursday. This inverse ETF moves opposite the commodity’s price. Jeremy warns that this move will be extremely volatile, but it will be a big winner if prices fall back under $5 (which he thinks will happen). By the way, the service also doubled its position in Roku (ROKU) by adding another 4%. The $300 level held and the editor believes it could get to $350 rather quickly. Read the full write-up for more on today’s moves. Options Trader: "But it all leads up to tomorrow morning’s Employment Situation Report by the Bureau of Labor Statistics. While last month’s miss, and persistent worker shortages, has generated some anxiety over this month’s report, the improvement that other labor force reports have shown this week bodes well for this one. "Tomorrow morning’s report is expected to show 475,000 new jobs were created last month (445K for the private sector and 30,000 for the public), while the unemployment rate is expected to have ticked down from 5.2% to 5.1%. But after Wednesday’s ADP report, many are going into the BLS report expecting a similar upside surprise. We shall see. "After the jobs report, the focus will shift to Q3 earnings, which is expected to show another robust quarter of corporate profits." -- Kevin Matras See You Friday, 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: zacksOct 11th, 2021

Burned out frontline workers are seeking out the lesser evil in their job searches

After months of coping with abuse, many frontline workers are desperate to find jobs without customer-facing tasks to avoid harassment and burnout. Many workers are desperate for new lesser evil jobs. Samantha Lee/Insider Workers are switching industries to get away from abuse, burnout, and harassment. Experts attributed the industry changes to the lack of well-paying, harassment-free hourly gigs. Workers said they recognize every job has its challenges, but they're choosing ones that benefit their mental health. Former flight attendant Jada Magwood recalled passengers verbally assaulting her on multiple occasions during the COVID-19 pandemic - including when a police officer had to escort an intoxicated, violent traveler off her plane.Magwood recently left the travel industry for a job at a tech startup. She didn't plan on quitting, but the burnout from passenger violence prompted her to seek out jobs without much customer-facing interaction.Flight attendants, like retail workers and nurses, have endured unruly, and at times violent, behavior from customers over the past year. Some Americans are aggressively opposing mask mandates, while others might be lashing out due to the trauma of the pandemic, experts and workers said.Workers in general are ditching their usual sector in search of greener pastures. A Prudential survey from April 2021 found that one in five respondents switched jobs during the pandemic, while 26% said they planned to seek new employment after the coronavirus threat subsides. The abuse "heightened the feeling of being disposable to our airlines during the pandemic," Magwood said. "At the end of the day, I got to a point where I was not getting paid enough to deal with situations like that." Flight attendants are quitting for jobs in different industries due to the uptick in unruly passengers. Southwest Airlines Searching for the lesser evilAfter months of coping with the abuse, many frontline workers are desperate to find different jobs with new problems that they're not used to dealing with, gigs that represent the lesser evil. That means beleaguered restaurant staff want to work at warehouses. Tired warehouse workers are desperate to get into retail. Exhausted retail workers are pondering going back to nursing school. And so on. Magwood said she recognizes working at a tech startup won't be easy, given the industry's high rates of burnout and sometimes long work hours. But her company offers mental health days and the ability to work from home permanently, both of which are a welcome change after months dealing with unruly air travelers. "As a flight attendant, you don't have the luxury of being able to take 10 minutes for yourself unless you want to stand in the lavatory for those 10 minutes," she said.Like Magwood, Jessica Walsh spent much of the pandemic dealing with what she called "snippy," short-tempered customers in her job in the paint department of a Menard's craft store in the Midwest.Walsh said she regularly had to choose between asking sometimes violent customers to put their mask on or letting the shopper potentially expose her to COVID-19. Eventually, she left for a receptionist gig. Walsh said she appreciated how seldom she interacted with clients face-to-face at her new job."A lot of people seem to have found other work or expressed moving into different industries; I have a couple friends that have gone back to school," Walsh told Insider. "The idea seems to be: 'Get away from retail.'" Warehouses are targeting restaurant workers for recruitment. Callaghan O'Hare for Insider Workers and employers are crossing industry lines to find new opportunitiesIt's not just employees. The ongoing labor crunch has even prompted a few employers to reach across industry lines in order to attract new applicants. Some supply chain companies strapped for staff are specifically targeting quick-service restaurant employees."We've found that those types of workers have made a nice transition to warehouse work. They're very hard workers and used to hourly work," Maggie Barnett, the COO of logistics provider ShipHero, told Insider. But the ongoing exodus is likely going to hurt some sectors more than others. Dr. P.K. Kannan, the Dean's Chair in marketing science at the University of Maryland Robert H. Smith School of Business, told Insider that restaurant workers in particular "found other options" after eateries shut down.But the challenging hiring environment could also prove to be an opportunity for blue collar workers looking to make a big change."If you've ever had a dream company you've wanted to work for, then now is the time to go for it," Mathieu Stevenson, CEO of hourly work online marketplace Snagajob, told Insider. "Some hourly employers that we work with are basically saying, 'We will interview anyone who is willing to work with us as long as they meet the minimum criteria.'"Read the original article on Business Insider.....»»

Category: dealsSource: nytOct 10th, 2021