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Ethiopian Airlines sees crash settlement with Boeing by end-June

Ethiopian Airlines expects a settlement with planemaker Boeing by end of June over the crash of an 737 MAX plane in March 2019, CEO Tewolde Gebremariam told Reuters on Friday......»»

Category: topSource: reutersMay 15th, 2020

Ethiopian Airlines sees crash settlement with Boeing by end-June

Ethiopian Airlines expects a settlement with planemaker Boeing by end of June over the crash of an 737 MAX plane in March 2019, CEO Tewolde Gebremariam told Reuters on Friday......»»

Category: topSource: reutersMay 15th, 2020

The U.S. Just Reached $50 Trillion in Gross Output

For weekend reading, while commennting on the U.S. gross output, Louis Navellier offers the following commentary: Q3 2021 hedge fund letters, conferences and more U.S. Gross Output Reached $50 Trillion The federal government recently debated passing two bills totaling $5 billion in new spending. The good news is that those bills were not passed, due […] For weekend reading, while commennting on the U.S. gross output, Louis Navellier offers the following commentary: if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {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 U.S. Gross Output Reached $50 Trillion The federal government recently debated passing two bills totaling $5 billion in new spending. The good news is that those bills were not passed, due to a rare spasm of common sense tied to the “debt ceiling” debate. The even better news was a release by the Bureau of Economic Analysis (BEA) that total output in the economy (as measured by gross output or GO) reached $50 trillion in 2021 as of June 30, 2021. That number requires an immediate footnote: The official “GO” figure from the BEA was a record $40.6 trillion, but the BEA omits over $9.6 billion in business-to-business transactions. Dr. Mark Skousen, who helped develop this statistic, adds that back in, reaching $50.2 trillion, calling that the “adjusted gross output” (see the preface to Skousen’s Third Edition of “The Structure of Production” for more details). GDP should total about $22 trillion this year, less than half of $50 trillion, but “GO” is a measure of ALL spending by businesses, government, and individuals. This much more comprehensive statistical measure of growth is more important because measuring just the consumer half of the economy is misleading. Unfortunately, the mainstream press keeps repeating the myth of consumer sovereignty, like this: “The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, rebounded 0.8% in August, shrugging off declining motor vehicle sales caused by a global shortage of semiconductors, which is undercutting the production of automobiles.” – Reuters, via Yahoo Finance, October 1, 2021. When you break down the real growth rate differential between business and consumers, it becomes clear that business-to-business spending is growing faster than consumer spending. In the second quarter of 2021, B2B spending grew at an 11.3% real growth rate, two points better than consumer growth (+9.1%). Gross output includes the supply chain, and we all know the supply chain has encountered bottlenecks. Consumers want many products that are in short supply, lying offshore in tankers, so this is building pent-up demand for a wide array of products, but since GDP is over-weighted (70%) into consumer spending, “GO” gives us a clearer picture of business production in providing those goods that are not yet sold. Other Signs of Growth Should Also Support a Rising Market Gross output isn’t the only sign of a growing economy in the second half of 2021. Second-quarter S&P earnings were up over 88% (year-over-year), and Argus Research sees full year 2021 GDP growth at 5.7%, so we’re in a situation in which we don’t need so much blather about, “I’m from the government and I’m here to help you,” to which the proper answer might be, “No thank you, we’re doing just fine.” Looking beyond the political sideshows – which seldom mean much to the stock market after a day or two – the other good news is that the underlying fundamentals continue to be strong. The S&P 500’s forward revenues just hit another record high during the last two weeks in September, according to economist Ed Yardeni. As of the end of September, analysts estimated that S&P 500 operating earnings rose 27% (year over year) in the third quarter, following the 88.6% gain last quarter. During the upcoming earnings reporting season, we can probably expect the actual results to beat these forecasts, creating some bullish “earnings surprises,” coupled with warnings about more possible supply disruptions hurting future quarters – but then something will happen to break those logjams, too. For the full year 2021, we’re likely to see 45% earnings growth, and that likely deserves a rising market. 2021 Year-Over-Year Earnings Growth (Actual and Forecast, as of September 30, 2021) Quarter Percent Gain over 2020 #1: Jan-March +48.3% (actual) #2: April-June +88.6% (actual) #3: July-Sept. +26.9% (forecast) #4: Oct-Dec. +19.9% (forecast) Source: Yardeni Research (for “S&P Operating Earnings Per Share”: analysts’ consensus estimates) Sometimes, too much of a good thing is never enough to brighten the bears’ sullen mood. Some bulls say we are headed into another Roaring 20s (which followed a major pandemic and a “flash crash” 100 years ago), but the bears counter that we are heading into “stagflation” (stagnation plus inflation) after a long, losing Asian war (Afghanistan=Vietnam) and the end of an impeachable Republican President (Trump = Nixon), like 50 years ago, so an army of bears see this as the 1970s (or 1929, or 1987, or 2008), while the fewer but wiser squadron of long-term bulls look to the last 100 years and say, “Stick with stocks, silly!” Mark Hulbert recently wrote this about the record of the best market timers in the Wall Street Journal: “Think back to October 2007. Even though the S&P 500 was about to embark on a 16-month decline of 57%, virtually none of the approximately 100 stock-market timers that my firm monitors were envisioning anything of the sort. This failure was true even for those market timers with the best long-term records coming into that month. One of the top long-term performers at the time was telling clients that a bear market was such a remote possibility that it wasn’t even on his radar screen. Another moved from being fully invested to going 25% on margin-borrowing to invest even more in stocks – the day before the exact day of the S&P 500’s bull market high. If these market professionals with good long-term records weren’t able to anticipate the beginning of one of the most serious bear markets in U. S. history, you’re kidding yourself if you think you can consistently do any better.” –Mark Hulbert, “Bull Markets Don’t Usually End with a Bang.” Wall Street Journal, October 2, 2021 At its worst, the S&P 500 is only down 5% from its pre-Labor Day peak, and it hasn’t seen a 10% drop in the last 18 months. Someday we’ll see a 10% correction and it will feel like 1987 all over again due to the long delay in coming, but it will be just a speed bump in the rear-view mirror of life, like 1987 is now. Trust the fourth quarter and its stock market. Good things usually happen at the closing of the year. Updated on Oct 15, 2021, 5:11 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: valuewalk12 hr. 11 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: nyt15 hr. 11 min. ago

Former Boeing pilot accused of deceiving the FAA about the 737 Max"s design flaws before they killed 346 people in 2 crashes

The DOJ said Mark Forkner didn't tell the FAA the entire truth about MCAS, a software responsible for the 2018 and 2019 crashes. A Boeing 737 Max sits outside the hangar at Boeing's Renton, Washington, plant. Thomson Reuters Faulty software caused two Boeing 737 Max planes to crash in 2018 and 2019, killing 346 people. A Thursday DOJ statement said Mark Forkner allegedly deceived the FAA during its assessment of the plane. 737 Max pilots were not sufficiently aware of the software as a result, the statement said. A former senior Boeing pilot was charged with fraud for allegedly deceiving the Federal Aviation Authority during its assessment of the 737 Max aircraft, whose faulty software led to two deadly crashes, the Justice Department said in a Thursday statement.A total of 346 people died when two 737 Max planes crashed in October 2018 and March 2019. At the time, Boeing said the cause of the tragedies was a faulty software known as the Maneuvering Characteristics Augmentation System.MCAS was designed to automatically push the plane's nose down to keep it stable if it detects a stall, but investigators found that it could misfire because of faulty data from a sensor, forcing the plane into an unstoppable dive.On Thursday, Mark Forkner, Boeing's 737 Max's chief technical pilot, was charged with two counts of fraud and four counts of wire fraud, the DOJ statement said. This is the first criminal prosecution in the two Boeing crashes."In and around November 2016, Forkner discovered information about an important change to MCAS," the US Attorney's Office in the northern district of Texas wrote."Rather than sharing information about this change with the FAA AEG [Aircraft Evaluation Group] Forkner allegedly intentionally withheld this information and deceived the FAA AEG about MCAS."The indictment went on to say that Forkner, who was allegedly trying to save Boeing money, didn't sufficiently inform the FAA about MCAS, and the software was therefore not sufficiently addressed in pilot-training materials."Forkner allegedly abused his position of trust by intentionally withholding critical information about MCAS during the FAA evaluation and certification of the 737 MAX," assistant Attorney General Kenneth A. Polite Jr. said."He deprived airlines and pilots from knowing crucial information about an important part of the airplane's flight controls."If Forkner is convicted, he faces a maximum 20 years in prison on each count of wire fraud and 10 years in prison on each count of fraud, the DOJ statement said.Boeing did not immediately respond to Insider's request for comment.In October 2018, a Boeing 737 Max operated by the Indonesian airline Lion Air crashed into the Java Sea, killing all 189 people on board. Five months later, a further 157 people died when a 737 Max operated by Ethiopian Airlines crashed in Bishoftu, Ethiopia, six minutes after taking off.Boeing CEO Denis Muilenburg apologized in a video about a month after the Ethiopian Airlines crash, and dozens of airlines grounded their Boeing 737 Max planes worldwide as a result.Boeing scrambled to salvage the plane's reputation in the aftermath, and both Boeing and the FAA were served with a number of lawsuits in following months, from victims' families, pilots, and shareholders.A lawyer representing more than 70 families affected by the Lion Air crash told Insider's Sinéad Baker earlier this year that the families' cases against Boeing were running "at least a year behind" due to the pandemic.The 737 Max began flying again in 2021.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 15th, 2021

DoJ Indicts Former Boeing 737 MAX Chief Technical Pilot For Fraud

DoJ Indicts Former Boeing 737 MAX Chief Technical Pilot For Fraud A federal grand jury in the Northern District of Texas returned an indictment today charging a former Chief Technical Pilot for Boeing with deceiving the Federal Aviation Administration in connection with their evaluation of Boeing’s 737 MAX airplane following two deadly crashes. Mark Forkner, who was Boeing's 737 MAX chief technical pilot during the aircraft's development, served as the plane maker's lead contact with the FAA for how airline pilots should be trained to fly the new jet, is charged with scheming to defraud Boeing’s U.S. based airline customers to obtain tens of millions of dollars for Boeing. Mr. Forkner persuaded regulators to approve excluding details of a new flight-control system known as Maneuvering Characteristics Augmentation System (MCAS) from the 737 MAX’s pilot manuals, according to a U.S. House investigation, and, as alleged in the indictment, provided the agency with materially false, inaccurate, and incomplete information about MCAS “In an attempt to save Boeing money, Forkner allegedly withheld critical information from regulators,” said Acting U.S. Attorney Chad E. Meacham for the Northern District of Texas. “His callous choice to mislead the FAA hampered the agency’s ability to protect the flying public and left pilots in the lurch, lacking information about certain 737 MAX flight controls. The Department of Justice will not tolerate fraud – especially in industries where the stakes are so high." Forkner is charged with two counts of fraud involving aircraft parts in interstate commerce and four counts of wire fraud. He is expected to make his initial court appearance on Friday in Fort Worth, Texas. The question from here is simple - will Forkner throw the Boeing C-Suite under the bus for acting on orders or was a 'lone wolf' trying to save Boeing millions of dollars for the good of his heart? *  *  * Full Justice Department Statement: (emphasis ours) A federal grand jury in the Northern District of Texas returned an indictment today charging a former Chief Technical Pilot for Boeing with deceiving the Federal Aviation Administration’s Aircraft Evaluation Group in connection with their evaluation of Boeing’s 737 MAX airplane, and scheming to defraud Boeing’s U.S. based airline customers to obtain tens of millions of dollars for Boeing. According to court documents, Mark A. Forkner, 49, formerly of Washington State and currently of Keller, Texas, allegedly deceived the FAA AEG during the agency’s evaluation and certification of Boeing’s 737 MAX airplane. As alleged in the indictment, Forkner provided the agency with materially false, inaccurate, and incomplete information about a new part of the flight controls for the Boeing 737 MAX called the Maneuvering Characteristics Augmentation System (MCAS). Because of his alleged deception, a key document published by the FAA AEG lacked any reference to MCAS. In turn, airplane manuals and pilot-training materials for U.S.-based airlines lacked any reference to MCAS — and Boeing’s U.S.-based airline customers were deprived of important information when making and finalizing their decisions to pay Boeing tens of millions of dollars for 737 MAX airplanes.  “Forkner allegedly abused his position of trust by intentionally withholding critical information about MCAS during the FAA evaluation and certification of the 737 MAX and from Boeing’s U.S.‑based airline customers,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “In doing so, he deprived airlines and pilots from knowing crucial information about an important part of the airplane’s flight controls. Regulators like the FAA serve a vital function to ensure the safety of the flying public. To anyone contemplating criminally impeding a regulator’s function, this indictment makes clear that the Justice Department will pursue the facts and hold you accountable.”      “In an attempt to save Boeing money, Forkner allegedly withheld critical information from regulators,” said Acting U.S. Attorney Chad E. Meacham for the Northern District of Texas. “His callous choice to mislead the FAA hampered the agency’s ability to protect the flying public and left pilots in the lurch, lacking information about certain 737 MAX flight controls. The Department of Justice will not tolerate fraud – especially in industries where the stakes are so high." Forkner allegedly withheld cruical inforamtion about the Boeing 737 Max and deceived the FAA, showign blatant disregard for his responsibilities and teh safety of airline customers and crews," said Assistant Director Calvin Shivers of teh FBI. "The FBI will continue to hold individuals like Forker accountable for their fraudulent acts which undermine public safety."  “There is no excusing those who deceive safety regulators for the sake of personal gain or commercial expediency,” said Inspector General Eric J. Soskin of the U.S. Department of Transportation. “Our office works continuously to help keep the skies safe for flying and protect the traveling public from needless danger. Today’s charges demonstrate our unwavering commitment to working with our law enforcement and prosecutorial partners to hold responsible those who put lives at risk.” According to court documents, Boeing began developing and marketing the 737 MAX in and around June 2011. The FAA AEG was responsible for determining the minimum level of pilot training required for a pilot to fly the 737 MAX for a U.S.-based airline, based on the nature and extent of the differences between the 737 MAX and the prior version of Boeing’s 737 airplane, the 737 Next Generation (NG). At the conclusion of this evaluation, the FAA AEG published the 737 MAX Flight Standardization Board Report (FSB Report), which included, among other things, the FAA AEG’s differences-training determination for the 737 MAX, as well as information about differences between the 737 MAX and the 737 NG. All U.S.-based airlines were required to use the information in the 737 MAX FSB Report as the basis for training their pilots to fly the airplane. As Boeing’s 737 MAX Chief Technical Pilot, Forkner led the 737 MAX Flight Technical Team and was responsible for providing the FAA AEG with true, accurate, and complete information about differences between the 737 MAX and the 737 NG for the FAA AEG’s evaluation, preparation, and publication of the 737 MAX FSB Report. In and around November 2016, Forkner discovered information about an important change to MCAS. Rather than sharing information about this change with the FAA AEG, Forkner allegedly intentionally withheld this information and deceived the FAA AEG about MCAS. Because of his alleged deceit, the FAA AEG deleted all reference to MCAS from the final version of the 737 MAX FSB Report published in July 2017. As a result, pilots flying the 737 MAX for Boeing’s U.S.‑based airline customers were not provided any information about MCAS in their manuals and training materials. Forkner sent copies of the 737 MAX FSB Report to Boeing’s U.S.-based 737 MAX airline customers, but withheld from these customers important information about MCAS and the 737 MAX FSB Report evaluation process. On or about Oct. 29, 2018, after the FAA AEG learned that Lion Air Flight 610 — a 737 MAX — had crashed near Jakarta, Indonesia, shortly after takeoff and that MCAS was operating in the moments before the crash, the FAA AEG discovered the information about the important change to MCAS that Forkner had withheld. Having discovered this information, the FAA AEG began reviewing and evaluating MCAS.  On or about March 10, 2019, while the FAA AEG was still reviewing MCAS, the FAA AEG learned that Ethiopian Airlines Flight 302 — a 737 MAX — had crashed near Ejere, Ethiopia, shortly after takeoff and that MCAS was operating in the moments before the crash. Shortly after that crash, all 737 MAX airplanes were grounded in the United States. Forkner is charged with two counts of fraud involving aircraft parts in interstate commerce and four counts of wire fraud. He is expected to make his initial court appearance on Friday in Fort Worth, Texas, before U.S. Magistrate Judge Jeffrey L. Cureton of the U.S. District Court for the Northern District of Texas. If convicted, he faces a maximum penalty of 20 years in prison on each count of wire fraud and 10 years in prison on each count of fraud involving aircraft parts in interstate commerce. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The Chicago field offices of the FBI and DOT-OIG are investigating the case, with the assistance of other FBI and DOT-OIG field offices. Trial Attorney Cory E. Jacobs, Assistant Chief Michael T. O’Neill, and Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alex Lewis of the U.S. Attorney’s Office for the Northern District of Texas are prosecuting the case. Tyler Durden Thu, 10/14/2021 - 18:40.....»»

Category: worldSource: nytOct 14th, 2021

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

A crypto collapse is "plausible" and regulation of the market is urgently needed, Bank of England"s deputy governor says

"Such a collapse is certainly a plausible scenario, given the lack of intrinsic value and consequent price volatility," Cunliffe said in a conference. Britain's Deputy Governor of the Bank of England Jon Cunliffe. REUTERS/ Jonathan Brady/Pool A crash in the crypto market is "plausible" given the volatility of the space, Bank of England's Jon Cunliffe said. He called for the regulation of digital assets, saying it is a "matter of urgency." Cunliffe also warned of the risks of DeFi during a conference reported by Reuters. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. A crash in the cryptocurrency market is "plausible" and regulatory clarity is urgently needed, Bank of England Deputy Governor Jon Cunliffe said on Wednesday."Such a collapse is certainly a plausible scenario, given the lack of intrinsic value and consequent price volatility, the probability of contagion between cryptoassets, the cyber and operational vulnerabilities, and of course, the power of herd behavior," he said during a speech at the SIBOS conference.As the market capitalization of digital assets balloons to more than $2 trillion this year, the nascent space remains highly unregulated as authorities globally bring their heads together on how best to increase oversight.The International Monetary Fund in its report published Tuesday also warned about the growing risks in the space, including fraud, excess speculation, and potential "runs" on seemingly more stable assets. Meanwhile, China imposed an almost blanket ban by prohibiting all cryptocurrency transactions in September.For his part, Cunliffe compared the digital asset space to the US mortgage market that dragged the global economy to the brink of collapse, pointing out the sub-prime market was valued at around $1.2 trillion in 2008.He also zeroed in on decentralized finance, or DeFi, saying England's central bank has begun working on managing risks and protecting consumers. DeFi is an umbrella term for various applications - lending, borrowing, trading, saving, derivatives, options, stocks - that use public blockchains and crypto assets to disrupt traditional financial sectors.Still, he sees positive potential in cryptocurrencies, but only if clear rules come soon."Indeed, bringing the crypto world effectively within the regulatory perimeter will help ensure that the potentially very large benefits of the application of this technology to finance can flourish in a sustainable way," he said. "It needs to be pursued as a matter of urgency."In the UK, about 2.3 million adults hold cryptoassets, according to a June survey by the Financial Conduct Authority. While the percentage of people who viewed crypto trading as gambling slipped, it still stood at more than one third of the respondents. An increasing percentage, however, saw digital assets as a complement or as an alternative to their mainstream investments. Read the original article on Business Insider.....»»

Category: personnelSource: nytOct 13th, 2021

3 Top-Ranked Dividend Aristocrats to Buy in Q4

With the stock market widely expected to gyrate all through Q4, it's prudent to invest in fundamentally sound dividend aristocrats like Procter & Gamble (PG), Walmart (WMT) & General Dynamics (GD). The month of October has a reputation of not being good for the stock market. Per a Barron’s article, historically, the S&P 500 had declined 0.4% in October, particularly after the broader index decreased more than 2% in the prior month, which by the way, did happen this time.Also, the October effect cannot be completely written off. It states that Wall Street had witnessed some of the worst declines in the month of October, including the great crash in 1987, and 1929’s Black Tuesday and Thursday.We may not witness huge crashes this October, but certainly, the month hasn’t been off to a good start for the stock market. In fact, the three major U.S. benchmarks have been dragged lower for the third successive trading session on Oct 12, and have witnessed choppy trading so far this month. Of course, there is a series of headwinds that is impacting the stock market’s upward journey and may well continue to do so this quarter.Investors now believe that the Fed may move away from its easy monetary policy soon, which actually helped the stock market stay afloat amid the coronavirus pandemic. The Fed may soon taper its bond-buying program and is widely expected to hike rates next year. Moreover, the European Central Bank is also expected to join the Fed in increasing its key interest rates in 2022. Thus, the possibility of higher interest dampens the prospects of growth-oriented tech stocks as it may impact the company’s ability to buy back stock and fund its growth.Adding to the woes is the current rise in energy prices. This is because an increase in energy prices leads to higher inflation, which curtails consumer spending, slows down economic growth, and drags stocks lower. On Oct 12, the U.S. crude benchmark – West Texas Intermediate, settled at $80.64 a barrel, its highest settlement value in almost seven years, citing a Wall Street Journal article. Similarly, coal price has hit a record high, the price of natural gas has jumped and Americans are  paying the highest at gas stations since 2014.Talking about inflation, the Fed’s preferred gauge of inflation, in reality, had already climbed the highest in 30 years on a yearly basis during the month of August. This rise in prices of essential goods would certainly have an impact on consumers’ outlays in the near future, something that doesn’t bode well for the economy vis-à-vis the stock market (read more: 3 of the Best Stocks to Buy as Inflation Threat Rises).By the way, the International Monetary Fund (IMF) has recently lowered its growth predictions for the world economy for this year. The spread of the more contagious Delta variant of the coronavirus and supply-chain disruptions across major economies compelled the IMF to cut the global growth forecast. Undoubtedly, such gloomy forecasts aren’t good for stocks in the near term.However, from an investment standpoint, investors shouldn’t shun equities completely at this time. Instead, they can opt to invest in dividend aristocrats. After all, these stocks boast solid fundamentals and are unfazed by any market gyrations. Furthermore, they have better quality business compared to just dividend payers. Let us, thus, take a look at the three top dividend aristocrats that should be added to your portfolio. These stocks also possess a Zacks Rank #1 (Strong Buy) or 2 (Buy).The Procter & Gamble Company PG provides branded consumer packaged goods to consumers. Procter & Gamble has paid out dividends for almost 130 years and has raised its payout for a whopping 64 successive years. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.2% over the past 60 days. The company’s expected earnings growth rate for the current year is nearly 5%.Walmart Inc. WMT has evolved from just being a traditional brick-and-mortar retailer into an omnichannel player. This company is known for raising its dividend for 48 consecutive years. It currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 5.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 15.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.General Dynamics Corporation GD engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. For 25+ straight years, the company has raised its dividend. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 4.5%. 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 General Dynamics Corporation (GD): Free Stock Analysis Report Procter & Gamble Company The (PG): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 13th, 2021

Jittery Market Remains Trapped Between Huge Gamma Strikes But "Big Turn" May Be Coming

Jittery Market Remains Trapped Between Huge Gamma Strikes But "Big Turn" May Be Coming Another day, another abrupt reversal in stocks which bounced overnight only to slide the moment markets opened for trading, suggesting some latent weakness in technicals. Just how big is this weakness is what bulls want to know. As we discussed earlier this week, with payrolls in the rearview mirror and the next major catalyst not due until the FOMC meeting next month, technicals have taken over and as SpotGamma writes this morning, "a move back to 4400 is just as easy as a move to 4300" but the the key factor for today's trading is waiting for implied volatility (VIX) to tilt and signal market direction (vol down, market up/vol up, market down)." Until that happens, the market remains trapped between and trying to find “fair value” between the large gamma strikes of 4300 & 4400. According to Spotamma, due to the negative gamma position (zero gamma is currently at 4,427) markets are not sticking to one of those strikes (i.e., no +gamma pin close to spot), "and so markets just bounce back and forth between large options strikes." Furthermore, "when the market is dominated by puts things are much more volatile due to more frequent hedging adjustments (puts sensitivity to vol)." And while stocks seem reluctant to break out into positive gamma territory, which as noted earlier is above 4,427... ...  there is substantial downside support at the 4300 area which is a lower bound due to the large put positions below that strike (including the Put Wall at 4,000). Meanwhile, Friday's expiration sees a fairly substantial put interest rolling off, and there is likely to be some tailwind into or from that event; whether we get “into” or “from” will depend on the price action into Friday according to SpotGamma. If markets hold near 4400 then the hedge unwind will be less impactful then if markets hit the 4300 mark. Either way, as SpotGamma concludes, "the more critical point here is that the markets hedge position will reduced into 10/15 Monthly OPEX which could remove support into end of month. The concern is that if there is still no real bid (ie no reflexive vol shorting), then removal of ~4300 support “matters more”. Nomura's Charlie McElligott sees a similar "Greek" dynamic for today's market, and warns that the substantial negative dealer gamma remains an “instability issue” for markets (both ways), as a prerequisite behind the chase-y “crash up, crash down” behaviors of the past few weeks, particularly as implied Vols on the index-level stay remarkably firm despite the various attempted rallies off the lows. His key levels to watch are the following: SPX / SPY “Gamma flip” positive above 4405; “Delta flip” positive above 4374 QQQ “Gamma flip” positive way up at $367.08; “Delta flip” positive above $365.07 IWM “Gamma flip” positive above $222.67; “Delta flip” positive above $224.75 Charlie also touches on the Friday opex, where he notes that a "significant amount of both the Gamma and Delta will be rolling-off, especially within the “secular growth” QQQ options space as the epicenter of the macro weakness within US Equities on the recent Rates / Inflation repricing." How is this cross-dynamic affecting flows? The flows cannot be understated across systematic strategies in both Bonds and Equities over the past 1m, particularly the strategies which are “synthetic” negative gamma…and thus act as “accelerant flows” into moves For example, we estimate that CTA Trend has sold -$70.8B of Global Equities futures over the last 1m (-$67.6B of that over the past two weeks alone), and sold -$94.6B of Global G10 Bonds over the same 1m lookback (-$74.2B over the past two weeks), making the CTA model’s historical Net $Exposure in G10 Bonds just 2.5%ile (“short”) since 2010 But a far more important flow has been emerging from Vol Control funds, whose strategy McElligott estimates has de-allocated -$95.0B in S&P futures alone over the past 1 month (of which -$73.6B coming over the past two weeks), as historically low realized vol “trued up” to crash-y implieds. It is here that a "big turn" in markets will likely emerge because when he looks ahead, the Nomura quant observes that it will get increasingly difficult for index-level rVol to stay “up here” moving-forward without sustainable 1.5% daily swings, as it will simply “collapse under its own weight”—while “vol softening” will only accelerate “short vol / hedge monetization” behavior, which then would encourage the “virtuous” re-leveraging / re-allocating from the Target Risk / Vol Control space. In short, vol control selling is may be about to reverse. Readers can begin to visualize this phenomenon in 1m and 3m rVol beginning to stall and roll shown in the Nomura chart below, which he notes "is the dynamic at the core of the aforementioned slowing of the selling from Vol Control, and the set-up for lagging forward re-allocation in coming weeks, if these “1.2%-1.5% daily changes” turn into “0.0%-0.5%-1.0% daily changes”. Finally with option expiration on deck, SpotGamma will hold another video chat about the state of the markets. Readers can join them for free live as they talk SOFI, what's going on in the WSB crowd and all things options today at 2:00 PM ET. Tyler Durden Tue, 10/12/2021 - 11:28.....»»

Category: dealsSource: nytOct 12th, 2021

Tata Sons just won the bid for ownership of Air India in a full-circle moment - see the airline"s 89-year history

Tata Sons' winning bid for ownership of Air India brings the history of the airline full circle, 89 years after founding the airline. Tata Airlines 747 Tata.com Tata Sons won a 100% stake in Air India, having bid $2.4 billion for the debt-ridden airline. Tata will take on $3.1 billion in debt but maintain Air India's brand and assets. Air India has an 89-year history, having been founded by the Tata family in 1932. Air India dates back to 1932, when it was founded as a private entity by renowned industrialist and philanthropist JRD Tata. Tata was India's first private pilot and his fascination with the industry led him to create the country's first commercial airline. JRD Tata's pilot license Tata.com Source: Live Mint While Tata is given credit for founding the airline, it was actually World War I veteran pilot Nevill Vintcent who came up with the idea. In 1928, Vintcent heard Britain's Imperial Airways was going to start international service across to Australia, and Air France and KLM were going to follow with flights to Vietnam and Indonesia. Imperial Airways aircraft Graham Ashby/Shutterstock Source: Live Mint The European airlines planned to carry both passengers and mail. Mail would be dropped off in Karachi, Pakistan and India-bound parcels would be transported to the country via rail - a process that could take a few days. India locomotive mail stamp rook76/Shutterstock Source: Live Mint Having carried mail as a pilot in Malaysia, Vintcent realized he could speed the process up by flying the mail from Pakistan to India instead. His domestic airmail service idea involved picking up the mail in Karachi and transporting it to cities in India within 24 hours. The concept also allowed for passenger service. Airmail postage stamp India Postage Stamps Source: Live Mint Because Vintcent did not have the resources to start an airline, he reached out to investors. He started by pitching to leading Parsi industrialist Sir Homi Mehta. While Mehta said he was not interested, he suggested Vintcent talk to Sir Dorabji Tata. Sir Dorabji Tata (seated on right) Tata.com Source: Live Mint Tata was skeptical of Vintcent's idea, but his prodigy and aviation buff nephew, JRD Tata, convinced him to pursue the venture. Thus, with an Rs2 lakh ($2,661) investment, Tata Air Mail was born. The purchasing power of $2,661 in 1928 is about $42,500 today. Portrait of JRD Tata Hindustan Times/Getty Images Source: Live Mint The Tatas purchased two single-engined De Havilland Puss Moth aircraft to run the operation and named Vintcent as the chief pilot. Vintcent worked as a full-time pilot for the airline, but Tata also employed two part-time pilots, one part-time engineer, and a handful of apprentice mechanics. De Havilland Puss Moth (not Tata Air Mail) Kev Gregory/Shutterstock Source: Live Mint Tata Air Mail aircraft could fly about 80 miles per hour and carried mail and up to two passengers. To navigate, Vintcent would follow the rail tracks below and, if needed, use a slide-rule navigation tool he kept in his pocket. Pilot slide-rule vadimserebrenikov/Shutterstock Source: Live Mint JRD created the airline's memorable motto, "Mail may be lost but never delayed; passengers may be delayed but never lost." Air mail from India Susan Law Cain/Shutterstock Source: Live Mint The company's maiden flight launched on October 15, 1932, marking the first flight in Indian aviation history. JRD Tata famously flew the first leg from Karachi to Bombay where Vintcent was waiting with the second aircraft. Vintcent then flew from Bombay to Madras. Tata Air Mail's inaugural flight Tata.com Source: Live Mint "On an exciting October dawn in 1932, a Puss Moth and I soared joyfully from Karachi with our first precious load of mail, on an inaugural flight to Bombay," JRD recalled. Tata Airlines time table Bjorn Larsson Source: Live Mint, Time Table Images Tata Air Mail was headquartered in a shed on a mud airfield in the beach town of Juhu, India, which kept getting battered by monsoons. The company was forced to move its operation to Pune after Juhu fell below sea level after each storm. Juhu, India coastline and runway Hitman H/Shutterstock Source: Live Mint After one year of operation, Tata carried 10 tons of mail and 155 fearless passengers, resulting in an Rs 60,000 ($799) profit. Tata Airlines route booklet Bjorn Larsson Source: Live Mint, Time Table Images Tata Air Mail had an outstanding first year, with the Directorate of Civil Aviation noting in his 1933 annual report that the airline had a 100% on-time record "even during the most difficult monsoon months." He also took a stab at Imperial Airways, suggesting it "might send its staff to Tatas to see how it's done." Tata Airlines timetable Bjorn Larsson Source: Live Mint, Time Table Images Over the next five years, the company continued to expand. It started flying to Delhi, Hyderabad, Goa, Trivandrum, Trichy, and Colombo. It also upgraded its aircraft to a Miles Merlin, which could ferry more passengers. With the airline becoming more sophisticated, it officially changed its name to Tata Airlines in 1938. Miles Merlin (not Tata Airlines) Tim Mason Source: Live Mint However, World War II proved to be a major disruption for Tata Airlines as the Indian government had the carrier flying Royal Air Force troops and military supplies. Royal Air Force aircraft Everett Collection/Shutterstock Source: Live Mint But Tata and Vintcent saw a different path to help the war effort - aircraft manufacturing. The pair's experience in the industry plus the Tata's resources made the concept possible, so Vintcent and Tata submitted a proposal to the British government to establish Tata Aircraft in Pune, India. The company planned to mass-produce the De Havilland Mosquito bomber. WWII-era mosquito bomber BlueBarronPhoto/Shutterstock Source: Live Mint Britain approved the venture, but by the time the manufacturing plant was set up, the war had shifted and the RAF no longer needed bombers, it needed gliders. Vintcent flew to Britain to discuss the change of plans, but disaster struck on his return home to India. World War II airspeed Horsa glider Royal Air Force Source: Live Mint, Royal Air Force Vintcent was originally planned to fly on Imperial Airways, but avoiding German airspace made the journey longer than normal, so Vintcent finagled his way onto an RAF bomber to get him to India quicker. Unfortunately, the plane was shot down and Vintcent perished. Lancaster bomber speedimaging/Shutterstock Source: Live Mint JRD Tata was devastated by Vintcent's passing because without his original concept, experience, and charisma, Tata Airlines may have never been born. Fortunately, Tata pushed through the tragedy and continued to build the airline. Tata Airlines Tata.com Source: Live Mint After the war in 1946, Tata's full scheduled service was restored and it became a public company listed as Air India. The company also created its infamous Maharajah mascot, which is used to promote its services. Air India Maharajah PhotographerIncognito/Shutterstock Furthermore, the company purchased a fleet of aircraft, including the infamous Lockheed Super Constellation named "Malabar Princess," which was capable of international flights. Malabar Princess Mila Daniels/Planes.cz Source: Airways Magazine, Planes.cz However, things started to change in 1947 when, after Indian independence, the government started talks of the nationalization of many companies, including Tata Airlines. JRD opposed the idea saying nationalization would lead to bureaucracy, a decrease in employee morale, and a worse passenger experience. Indian independence illustration Vectomart/Shutterstock Source: India Times Nevertheless, the government took a 49% stake in the company in 1948, creating Air India International. Tata held a 25% stake with the rest under public ownership. However, this didn't stop JRD Tata from pushing forward. Air India aircraft CAMFOTO049/Shutterstock Source: India Times In the same year, the Malabar Princess took off on its first international flight on June 8, 1948, ferrying 35 passengers, including JRD Tata, from Bombay to London. The flight cost Rs 1,720 ($23, which is $261 today). "Set your watches, boys, we are right on schedule," Tata said to the media as he stepped off the plane. Lockheed Super Constellation (not Air India) IanC66/Shutterstock Source: Airways Magazine After five years of split ownership, JRD Tata received a major blow in 1953 when the Indian government nationalized Air India, stripping Tata of control. Tata was distraught, saying it was the government's attempt to suppress civil air services. A stock image of an Air India jet in Mumbai, May 2020 Indranil Mukherjee / AFP via Getty Images Source: India Times While the government took power from Tata, it still wanted his expertise to help run the airline. So, officials proposed Tata become Air India's chairman and be on the board for Indian Airlines, which operated Air India's domestic service. Tata accepted the offer. Air India aircraft Media_works/Shutterstock Source: India Times In February 1960, Air India became the first Asian country to enter the jet age with the purchase of a Boeing 707-420 aircraft. The company launched the plane on a flight to New York. Two years later, Air India became the world's first all-jet airline. Air India Boeing 707 Steve Fitzgerald/Airliners.net Source: SeatMaestro, Airliners.net In 1970, the carrier moved its headquarters to downtown Bombay, and in 1971, it received its first Boeing 747-200B aircraft, named "Emperor Ashoka." Tata Airlines 747 Tata.com Source: Air India Collector The same year, the company introduced its new "Palace in the Sky" livery and branding. The company was focused on bringing the Indian culture to the inflight experience with colorful designs and a welcoming cabin crew. Tata Airlines inflight Tata.com Source: Airways Magazine, Sam Chui Aviation and Travel The airline became known as one of the world's finest airlines. For example, before Air India had an all-jet fleet, it competed with British Overseas Airways Corporation on a route using a turboprop. Despite BOAC using a jet on the same route, passengers still opted for Air India's longer flight because of how pampered they were onboard. BA 747 painted in BOAC livery Ceri Breeze/Shutterstock Source: Airways Magazine Meanwhile, its most luxurious routes were transatlantic, where it happily stole customers from its European and American competitors. The aircraft offered bar service in first class, onboard meals, and magazines. Air India 747 w_p_o/Shutterstock Source: Airways Magazine, Architectural Digest Also accessible onboard was the Maharaja Lounge in the 747s upper deck, which JRD Tata helped design. He ensured everything from the napkins to the tableware was created in his vision. Tata Airlines Tata.com Source: Architectural Digest In 1978, JRD Tata's position as chairman of Air India came into question after Air India's first 747, Emperor Ashoka, crashed off the coast of Bombay, killing 213 passengers and crew. The crash was due to pilot error, and the then-Prime Minister of India stripped Tata from his chairman and board position of Air India and Indian Airlines. Air India 747 named Emperor Ashoka Michel Gilliand/Airliners.net Source: India Times, Airliners.net However, another driving issue between the two was the Prime Minister saying no alcohol could be served on Air India, but JRD Tata strongly opposed it. Tata's firing received national outrage because Air India was a symbol of national pride for the people. Air India seats EQRoy/Shutterstock Source: Airways Magazine Fortunately, Tata was reinstated in 1980 by Prime Minister Indira Gandhi to the board of both airlines, where he served until 1986. Prime Minister Indira Gandhi United States Library of Congress Source: India Times, US Library of Congress Air India continued to expand its fleet over the next decade, taking delivery of its first Airbus A310-300 in 1986 and its first Boeing 747-400 in 1993, which is named Konark. Konark flew the first nonstop flight between Delhi and New York that year. Air India Airbus A300 Perry Hoppe/Airliners.net Source: SeatMaestro, Airliners.net In 1995, Air India began serving Amsterdam from Mumbai, in 1996 it entered Chicago O'Hare, and in 1997 it entered a global alliance with Air France. However, in the mid-1990s, private players started entering the industry with lower fares, causing Air India to lose part of its market share. Airbus A318 Air France Archivio Massimo Insabato/Mondadori Portfolio via Getty Images Source: SeatMaestro, The Hindu From 2000-2001, Air India attempted to re-privatize. The National Democratic Alliance government tried to sell a 40% stake in the company, which Tata and Singapore Airlines showed interest in buying. However, Singapore pulled out after opposition from trade unions, dismantling the investment plan. A Singapore Airlines Boeing 777-300ER. Thiago B Trevisan/Shutterstock.com Source: The Hindu In 2004, Air India entered into an alliance with Lufthansa. A Lufthansa Airbus A321. Nicolas Economou/NurPhoto/Getty Source: SeatMaestro The same year, the company launched its wholly-owned subsidiary, Air India Express, which connected India with the Middle East and Southeast Asia. Philip Lange / Shutterstock.com Source: SeatMaestro In 2007, Air India merged with Indian Airlines to create Air India Limited. Up until then, Air India operated most long-haul international routes while Indian Airlines ran its short-haul international and domestic network. Air India Vytautas Kielaitis/Shutterstock Source: SeatMaestro Also in 2007, the airline received its first Boeing 777 aircraft and was invited to be a part of the Star Alliance, which included carriers like Lufthansa and United Airlines. Air India Star Alliance livery Phuong D. Nguyen/Shutterstock Source: SeatMaestro Since its merger, Air India has not turned a profit. In 2007, it posted a net loss of Rs 7.7 billion ($102 million), which increased to Rs 72 billion ($1 million) by 2009. Air India Boeing 787 Media_works/Shutterstock Source: BBC News To finance the debt, Air India sold three of its Airbus A300s and one Boeing 747 for Rs 1.4 billion ($18.75 million). The carrier was Rs 426 billion ($6 billion) in debt by 2011, and its invitation to join Star Alliance was suspended the same year due to it failing to meet membership requirements. Air India Boeing 747 Renatas Repcinskas/Shutterstock Source: SeatMaestro In 2012, the Indian government sent Rs 32 billion ($450 million) to Air India in a bailout and a financial restructuring plan was approved. Also that year, a study by the Corporate Affairs Ministry concluded the airline should be partly private, so Air India invited banks to raise up to Rs 60 billion ($800 million). Indian Bank TK Kurikawa/Shutterstock Source: Business Standard The airline continued to try to privatize in 2013 but had strong opposition from rival government parties. However, that same year, Air India posted its first positive earnings before taxes in six years and had a 20% growth in operating revenue. Air India aircraft Tooykrub/Shutterstock Source: Business Standard, The Economic Times Then, in 2014, Air India solidified its spot as a Star Alliance member. In 2015, the company signed an agreement with Citibank and the State Bank of India to pump $300 million into the airline. Nevertheless, the airline saw a net loss that year. Air India 787 Star Alliance livery KITTIKUN YOKSAP/Shutterstock Source: SP's AirBuz In 2017, the Indian government approved the privatization of Air India. In 2018, the government wanted to sell a 76% stake in the airline, with the condition it takes on $4.7 billion of Air India's debt. The remaining 24% would remain in government control, however, it secured no buyers. Air India aircraft at Mumbai airport Anand Balaji/Shutterstock Source: BBC News In 2019, the government upped the ante. It released an Express of Interest to sell a 100% stake in the debt-ridden airline and its subsidiary Air India Express, as well as 50% in AISATS, a ground handling company. It attracted a handful of bidders, including Tata Sons and a consortium led by Spice Jet's chairman and managing director Ajar Singh. Boeing Source: BBC News On October 8, 2021, Tata Sons won the bid with Rs 18,000 crore ($2.4 billion). The win will give Tata ownership of the Air India, Indian Airlines, and Maharajah brands, as well as airport slots at 173 destinations worldwide and 141 planes. Air India seats Santhosh Varghese/Shutterstock Source: BBC News Tata will take on Rs 23,286.5 crore ($3.1 billion) of Air India's Rs 60,074 crone ($8 billion). The remaining debt will be put into a Special Purpose Vehicle, Air India Assets Holding Ltd, to monetize the airline's assets to pay off the debt. Air India Boeing 777 Lukas Wunderlich/Shutterstock Source: Times of India Tata Sons' winning bid for ownership of Air India brings the history of the airline full circle. Eighty-nine years after founding the airline, Tata regained control once again. JRD Tata with De Havilland Leopard Moth aircraft Tata.com Source: Times of India "On an emotional note, Air India under the leadership of Mr JRD Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world. Tata will have the opportunity of regaining the image and reputation it enjoyed in earlier years. Mr JRD Tata would have been overjoyed if he was in our midst today," said Tata Group's chairman emeritus Ratan Tata. JRD Tata Tata.com Source: The Hindu Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 11th, 2021

Time to Buy Back into the COVID Stocks

The "COVID stocks" may have fallen from their peaks, but they're still fundamentally solid. Jeremy highlights three areas that should continue outperforming in the future despite selling off as the vaccines rolled out. The stock market has experienced some wild rides since the beginning of the COVID-19 pandemic. We saw a crash in 2020 and a subsequent rally that currently puts us just 3% away from all-time highs in the indices. It has been a year and a half since COVID came to America and there are big questions surrounding what stocks will outperform into the end of the year.Life is not 100% back to normal and the market is in a confusing spot. Tech stocks were thriving during the pandemic, but started to see weakness when the vaccines were rolled out. Money then rotated into the reopening stocks like airlines, hotels, restaurants and cruise lines. This created a divergence on some trading days that separated the performance of the Nasdaq and S&P by as much as 1%.Delta Changed Everything The delta variant has unfortunately stopped the momentum reopening stocks saw earlier in the year. While vaccinations are slowing the spread, the world is still having issues fully coming back online.Investors now must look at the staying power of the “COVID stocks”. Many of these names have fallen from their peaks, but continue to perform fundamentally as we drift through the delta stage of this pandemic.The recent divergence has created tons of opportunities as the COVID names continue to see tailwinds from a permanently changed economy. Below we will discuss three areas that were hot during COVID, but have seen sell offs since the vaccines were rolled out. We will then dive into some stocks that reside within these sectors that will continue to outperform in the future.Continued . . .------------------------------------------------------------------------------------------------------Is the Market Rigged?How often have you owned a stock that gets pummeled with no logical explanation? This is often caused by computer-driven High-Frequency Traders (HFT). They fire off massive amounts of short trades to drive stock prices down, then profit from the rebound. Their gains come at the expense of human investors.The good news is that Zacks has mounted a Counterstrike to catch the best of these “manipulated price drops” as they rebound. For example, we recently closed gains of +40.2%, +49.1%, +62.0%, and even one for +252.0% in less than a month.¹Access to these trades must be limited. It closes to new investors Sunday, October 10.See Counterstrike Stocks Now >>------------------------------------------------------------------------------------------------------1) Technology We all know the big names that did well during the pandemic. Companies like Amazon, Microsoft, Netflix, Apple and many more saw record revenues as people were dependent on their technology to continue living life and doing business.Many tech companies saw exponential growth over the last year, growth that they were not expecting for another 10 years. The pandemic accelerated tech into the future and we are now living in a permanently changed environment because of it.The technology ETF XLK took a 33% dip during the COVID crash. However, it quickly bounced back to all-time highs in June of last year and is now up over 135% from those COVID lows.Let’s go over two stocks that became household names over the last year and continue to do well while navigating COVID.ZM- Zoom Video is a communication platform that helped a lot of families and businesses connect during the pandemic. The company saw parabolic growth during COVID, seeing three straight quarters of triple-digit EPS beats in 2020. While growth has slowed, the company continues to beat expectations, with an EPS surprise to the upside of 17% in late August.The stock rose from $65 to $588 in 2021, but started to pull back in November, right when the vaccine news hit. The stock pulled back 53% from highs and has dropped back to the May lows around the $275 level.The company is valued at $82 billion and investors are looking to buy the dip if the current support area can hold.DOCU- DocuSign provides e-signature solutions and has become popular with users in real estate, insurance, healthcare, government and more. When people couldn’t get together to sign documents, they took care of business online with DocuSign.The company saw a breakout quarter last year, beating EPS by 142% back in September. The earnings momentum continued in 2021, as the company has reported two beats on EPS of over 60%. The most recent quarter saw a beat of 20% on earnings, but analyst estimates for the current year and quarter are headed higher.The stock was up almost 200% in 2020, hit new all-time highs in August, but has since pulled back over 15% from highs. The stock is now worth $54 billion as investors seem to be accepting that the company’s momentum is not stopping anytime soon.2) Consumer Staples  This sector is comprised of the goods and service that are necessities, which often do well during recessions. However, the COVID outperformance stemmed from stay-at-home orders, which led to panic buying of food, toilet paper and almost anything in a grocery store.The main ETF for this sector is XLP, which bounced 53% from the March 2020 lows to August highs. The sector has seen some selling of late, but is only 4% off its highs.Let’s go over two leaders in this group:PG- Proctor & Gamble is a household name that sells many of the products in your home. Toilet paper, shampoo, deodorant, razors, toothpaste and diapers are all products we buy from P&G.The company reported a 15% beat on EPS in July of last year, the major COVID quarter when people panic bought everything on the shelves. However, the company is still outperforming, with beats on EPS of at least 4% every quarter since that big July number.The company is valued at $345 billion, pays a 2.4% dividend. The stock is only 2% off its 2021 highs.WMT- Walmart is the popular brick-and-mortar store, but in recent years has expanded into e-commerce, which helped them during the early stages of COVID.The company reported a whopping 28% EPS beat last summer, but topped that with a 38% beat this past May. Their most recent quarter saw a 14% beat, which brought in some selling off all-time highs.While the momentum has cooled a bit, Walmart continues to outperform, beating earnings expectations five out of the last six quarters. The company is almost valued at $400 billion and pays a 1.5% dividend.3) Camping There was a lot of fear surrounding travel at the height of the pandemic. Because the U.S. had one of the highest cases counts, some countries issued quarantine rules for travelers. This wasn’t appealing for someone on vacation so we saw a big uptick in domestic travel. And since all the hotels were closed, the demand for RVs and the desire to camp increased.While America has opened up, the demand for camping is still there as we head through the fall months. We have already seen evidence of this when two of the RV manufacturers recently reported earnings.THO- Thor Industries is the largest manufacturer of RVs in the world. Some popular brand names include Airstream, Jayco and Keystone.The company had a lot of success in 2020, including a 200% beat on EPS in June of last year. More recently, the company is coming off a 39% EPS beat this June, as well as posting an order backlog of $14 billion. The only issue for Thor is making the RVs fast enough, which led to a 30% slide in the stock in Q2 of 2021.The stock went from $32 to $152 last year, so you can’t blame investors for taking profits. However, the demand for RVs is the strongest it has ever been, which has the company valued at $6 billion. Investors can also collect a 1.5% dividend if they jump into the recent sell off.WGO- One of Thor’s biggest competitors is Winnebago. The company is valued at $2.2 billion and has strong brand recognition after being around for sixty years.Winnebago is smaller and only pays a 1.1% dividend, but an EPS beat of 23% in June helped the stock bounce. The stock is now trading sideways, but looks poised to go higher if the company can show investors that earnings momentum will continue when they report in October.In Summary The questions surrounding the “COVID stocks” will lead to continued volatility. This will create opportunities that will allow entry points at discounted prices. If investors focus on the stocks that are both fundamentally and technically strong, they will be rewarded with outsized returns. How to Capitalize  The current atmosphere is not your typical stock trading environment. The Fed is about to start the tapering talk and the reopening trade is largely priced in. This combination could cause outsized earnings moves.The opportunities during this earnings season will be plentiful due to the recent volatility. The mission of our portfolio, Zacks Counterstrike, will be to catch these big moves, playing both the long and short side of the market.I plan to be in before and after earnings depending on the situation and look forward to capturing the big moves that are coming our way. The upcoming quarter will be important for stock prices so join me and let's profit from it!Our goal: Quick and consistent profits.For example, we recently closed gains of +40.2%, +49.1% and +62.0%. One even closed at a remarkable +252.0% in less than a month.¹Look inside our Counterstrike portfolio today and you may also download our Special Report, 7 Best Stocks for the Next 30 Days, absolutely free. These buy-and-holds are the perfect complement to Counterstrike's faster-action trades. Zacks experts reveal stocks believed to have great upside potential over the next 30 days.Important Note: Access to Counterstrike is limited and your chance to look in and claim your free bonus report ends Sunday, October 10.Get exclusive access to Zacks' Counterstrike portfolio now >>Happy trading!Jeremy MullinEditor of Counterstrike Jeremy Mullin is a stock strategist who combines the fundamental power of the Zacks Rank, technical analysis and computer driven trading to find the best trades. Discover all of his current recommendations in Zacks Counterstrike.¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. 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 To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 6th, 2021

CLEAR is one of the best ways to skip airport lines, and it"s easier to sign up than TSA PreCheck

Here's everything to know about how CLEAR airport security works, how much it costs, where it's available, our review, and deals on free trials. When you buy through our links, Insider may earn an affiliate commission. Learn more. CLEAR CLEAR offers fast, touchless entry at over 50 airports, stadiums, and arenas in the US. It takes minutes to enroll and seconds to use, scanning eyes or fingerprints to safely gain entry. We tried it out during recent air travel to see how it works and compares to TSA Precheck. Table of Contents: Masthead StickyBiometric Security Screening (Per Year) (small)Stressful at its worst and mind-numbing at its best, waiting in an airport security line is an experience no one enjoys. No amount of mental willpower or foot-tapping will let you out of the process, but there is a biometric security service called CLEAR that can make it a lot faster.CLEAR is a friction-free security process at airports, stadiums, and arenas that scans your eyes or fingerprints so you can reach the place you really want to be - the flight gate, concert, or game - quickly and conveniently. Just like safety and security are valued at airports and large venues, CLEAR values customer security and ensures member data is kept private and secure through double encryption. This way, you have the peace of mind that your data is safe, all while you enjoy the benefits of an effortless security process. Learn more about how CLEAR works below, plus our review of the service, and deals on signing up. How CLEAR saves you time CLEAR When you travel and go through airport security, the first checkpoint involves standing in a long line for a TSA agent to scan your boarding pass and ID.With CLEAR, you skip the line and enter security through your own designated lane where you check-in and are escorted directly to the physical screening. Instead of using traditional ID documents, CLEAR uses your eyes and face to confirm it's really you. This is done by transforming your biometrics into an encrypted code of ones and zeros that are unique to you. The platform is Department of Homeland Security- and SAFETY Act-certified. How to enroll in CLEAR CLEAR To use CLEAR, you'll first enroll by filling out a short online application. It takes just a few moments.Then, you'll visit a participating airport to get your eyes and fingerprints scanned. Bring one of the following forms of photo identification with you: US Driver's LicenseUS PassportUS Passport CardUS-issued Permanent Resident CardState Issued IDUS Military IDAll forms of identification must be valid, unexpired, not amended, and have a photo. This process takes about five minutes in total. You don't have to go out of your way to do this. Most people enroll in person at the same time they are flying out. That's because once in-person registration is complete, you can use the CLEAR lane right away.  How to use CLEAR CLEAR Once you're enrolled and in the designated lane, all you have to do is scan your fingers or eyes at the kiosk to get your identity verified. It takes just seconds.This means no fumbling for documents or IDs and waiting in a line that seems to loop and turn with no end in sight. Once you're done, a CLEAR attendant will escort you to the front of the regular security line where you'll wait your turn to put your belongings through the X-ray scanner and finish the screening process. How much does CLEAR cost? CLEAR Twitter A CLEAR Plus membership costs $179 per year with access at all locations where CLEAR is available.CLEAR Plus members can add up to three adult family members to their account at a discounted rate of $50 per person. Children under 18 are free when traveling with a CLEAR family member with no enrollment required.Delta SkyMiles members also enjoy discounted rates:Diamond Medallion members: Free Platinum, Gold and Silver Medallion members: $109 a yearGeneral SkyMiles members: $119 a yearWe also secured two deals for readers to try CLEAR. Choose from a free trial or a discount off the annual price:Streamline your travel experience and enroll in a 2-month free trial of CLEAR here using the code "INSIDER."Take $30 off the cost of an annual CLEAR membership with the code "INSIDER 149." Where is CLEAR available? LaGuardia Airport CLEAR is available in the following airports and sports stadiums of major cities:Atlanta: ATL, SunTrust Park Austin: AUSBaltimore: BWIDallas: DFW, DALDenver: DEN, Coors FieldDetroit: DTW, Comerica ParkHouston: IAH, HOULas Vegas: LASLos Angeles: LAX, Banc of California Stadium Miami: MIA, Marlins Park, American Airlines ArenaMinneapolis: MSPNew York: HPN, LGA, JFK, Grand Central, Yankee Stadium, Citi FieldOrlando: MCOPhoenix: PHXSalt Lake City: SLCSan Antonio: SATSan Francisco Bay Area: SFO, AT&T Park, Oakland-Alameda County Coliseum San Jose: SJC, Avaya Stadium Seattle: SEA, Safeco Field, CenturyLink FieldWashington, D.C.: IAD, DCA Find your city and view detailed information about where CLEAR lanes and enrollment are available TSA PreCheck vs. CLEAR CLEAR Instagram Though the two might sound like they're interchangeable, CLEAR isn't a substitute for TSA PreCheck. Here are some key differences:TSA PreCheck expedites the security process by putting you in a shorter line to get your documents checked and allows you to keep your shoes, laptops, liquids, belts, and jackets on you. Meanwhile, CLEAR expedites the general security process by letting you bypass the first line for document verification altogether with the biometric screening. If you have TSA PreCheck, you'll move on to the physical screening and still enjoy the benefits of PreCheck. If not, you will be physically screened per the standard rules. In other words, CLEAR members don't have a separate second screening like PreCheck members do, unless they have a membership with both.TSA PreCheck members can get randomly excluded and sent to the regular line. CLEAR does not have random exclusions.TSA PreCheck only works with certain airlines, though it's available in many more airports nationwide. CLEAR works with any airline, but its rollout in airports is still limited. CLEAR is also available at some sports stadiums. To enroll in TSA PreCheck, you submit an online application and schedule an in-person appointment at an enrollment center. The appointment includes a background check and fingerprinting. To enroll in CLEAR, you submit an online application and visit an airport location where you undergo a background check and fingerprinting. No appointment is necessary and it's much quicker overall.  Using CLEAR's Health Pass for travel during COVID CLEAR itself is an attractive option for travel during COVID-19 as it removes waiting in a lengthy general airport security line with no social distancing.It also facilitates travel during the pandemic with the option to use Health Pass, a free feature on the CLEAR app for members who are 18 and over that connects your verified identity with your health history to create a digital vaccine card. This then syncs with Health Pass to show proof of vaccination for venues and countries that require it.It may be used in some places to avoid mandatory quarantine, such as Hawaii. Our review of CLEAR CLEAR members check in for security at their own designated lane with these kiosks that scan your retina to securely verify your identity. Emily Hochberg/Insider I tried CLEAR this summer when I flew cross country on more than one occasion. The cost was comped by the company for review purposes. I signed up online in minutes, per the directions, and added my husband to my family account. Because my infant daughter was well under 18, I did not need to make an account for her.When I arrived at San Francisco Airport for a 7 a.m. return flight to New York City, despite the early arrival, the security line was already incredibly long. I was thankful to zip past it to a separate area designated for CLEAR with a handful kiosks for checking-in.Because this was my first time using CLEAR, I needed to finish my enrollment. The company says this should only take five minutes, though mine took at least 10 to 15. Part of this was because we were juggling a baby, but a CLEAR attendant was also required to shepherd us through the process and ours was quite busy helping multiple travelers at once.All I needed to do, though, was look up my personal information, scan my fingertips and retina, and that was about it. While I was able to cut to the front of the security line with CLEAR, I still had to wait in a long line for the x-ray screening. Emily Hochberg/Insider Once checked in, the attendant printed my boarding pass and I had to wait for a few other guests to finish the process so he could bring us all to the next step in the security screening process. My husband, however, who had TSA PreCheck, was guided to a separate line for travelers with the distinction. I went to the security line for general travelers, and while I was able to skip to the front to have my ID checked, I had to wait in a long line to go through the X-ray scanner. CLEAR did not grant privileges to cut it and I had to remove my iPad.When I flew again a month later, departing from Hartford, Connecticut, I was excited to see if CLEAR would be faster in a smaller airport. Unfortunately, it was not offered there and I waited in the general line from start to finish.As a former TSA PreCheck holder, I couldn't help but compare the two. When looking at TSA PreCheck vs CLEAR, the differences are, well, quite clear.TSA PreCheck is cheaper at $85 for five years, whereas CLEAR costs $179 for one year. It's worth noting though that CLEAR is offered at additional venues beyond airports, and if you frequent many sports games or concerts where it is offered, you'll certainly appreciate the shorter line. TSA PreCheck also often sees fewer lines overall. It's more widely available whereas CLEAR is limited to a handful of airports. If CLEAR is not offered in your home airport, it's probably not worth it.However, enrolling in CLEAR is so much easier. Part of the reason why my TSA PreCheck lapsed is that it feels like such a hassle to make an appointment to sign up, which usually takes place in out-of-the-way locations and requires fingerprinting.Signing up for CLEAR on the other hand takes just a few moments and you can do it on the way to your flight from your mobile device. You can still cut to the front of the first security line, and if the X-ray scanner isn't backed up, it's a great way to speed up travel through an airport terminal.Choosing which one is best really depends on the types of venues you visit most often and whether CLEAR is offered in the airport from where you're most likely to depart. The bottom line CLEAR Instagram If you travel frequently out of CLEAR's participating airports and want to save yourself time and anxiety, CLEAR is a worthwhile investment to consider. And with the following two deals, it's well worth trying out to see if it's a good fit for your needs.Streamline your travel experience and enroll in a 2-month free trial of CLEAR here using the code "INSIDER" or purchase a discounted membership for $149 (regularly $179) with the code "INSIDER 149."Biometric Security Screening (Per Year) (button) Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 6th, 2021

Rabobank: The Surge In Commodity Prices Is Not Led By Bullishness, But By Panic

Rabobank: The Surge In Commodity Prices Is Not Led By Bullishness, But By Panic By Michael Every of Rabobank Blessed are the cheese-makers? Bloomberg markets informs me this morning that “inflation, not stagflation” is back. As they put it: stocks went up again yesterday to match bond yields; both energy and broader commodities are spiking; and the US ISM services PMI was firm at 61.9, with prices paid at 77.5. To be honest, that view is similar to the one you get from the back of a large crowd when you can’t actually see or hear the speaker properly: (“Speak up!”) Market were likewise optimistic because Senator “Stonewall” Manchin --who is not the one to focus on, Senator “Bathroom” Sinema is-- allegedly said: “I'm not going to rule things out” vis-à-vis the $3.5trn reconciliation package, suggesting the fiscal logjam can be broken and the debt ceiling dealt with. Except, as @lindsaywise tweets, the Hill journalist pool consensus is that he actually said "I'm not going to say anything about it." Our hi-tech 24/7 global markets are the “Blessed are the cheese-makers” Python skit. Also note the content of the $3.5trn bill (green, Hyde amendment) is as divisive as the price-tag. Moreover, Republicans are united in blocking a debt-ceiling increase with a Senate filibuster because this forces the Democrats to use reconciliation to pass it, using up ammunition that cannot then be steered to Progressive-favoured spending. So, will the Greek inherit the earth? (“Oh, it's the meek! Blessed are the meek! Oh, that's nice, isn't it? I'm glad they're getting something, 'cause they have a hell of a time.”) More broadly, the surge in commodity prices we are seeing is not led by bullishness, but by panic as energy prices spike and supply chains threaten to collapse. In China --despite a national holiday-- the China Banking and Insurance Regulatory Commission has asked relevant lenders to safeguard the "reasonable financing needs" of coal mining, power, iron, and steel, and to "do everything possible" to increase support for securing supply, stabilizing commodity prices, safeguarding people's basic livelihoods, and a "smooth operation of the economy". This includes loan extensions with "controllable risks", increasing regulatory tolerance for non-performing loans, prohibiting loan withdrawal and cutting-off of credit, and preventing "campaign-styled" carbon reductions - with the exception of firms with overcapacity. Now combine this kitchen sink credit policy with “at any cost” energy imports. Global firms are also responding to the energy surge and shipping-price spike by hoarding. What happens when stocks have been built up enough? Deflation. (And note the Atlanta Fed GDPNow tracker is already down to 1.3% q/q annualized while some expectations for China are flat GDP q/q). Let’s be clear, the structural change in shipping costs and physical unavailability of goods means supply-side inflation will stay high for a long time ahead, and stockpiling will be very difficult to do. But where we do see surges in purchases, it is this dynamic at play, not “inflation”. The only way it is inflationary is if wages rise. This is happening in pockets as the labor market is restructured post-Covid. Yet even where the trend is most evident, in the post-Brexit UK, the government is presiding over what we dubbed last year as “central planning with no plan”. And there, as elsewhere, if central banks and governments stimulate again without new supply chains or energy sources we are just back to stagflation. Talking of central bank stimulus, Senator Warren attacked the Fed again yesterday, saying FOMC Chair Powell has “failed as a leader” and that there are “legitimate questions about conflicts of interest and insider trading,” as a further Fed member was suggested to be involved. Regardless, President Biden has said that he has “confidence” in Powell. In British politics, that is usually a precursor to a ministerial resignation in order to spend more time with their family. Meanwhile, market bullishness was also triggered by the SEC’s Gensler saying he won’t ban crypto, like China. (“Well, obviously, this is not meant to be taken literally. It refers to any manufacturers of dairy products.”) No, the SEC won’t ban it: they will just regulate and tax it, so the market serves state power. That’s how you deal with what billionaire Ken Griffin calls a “jihadist call” against the US dollar. The RBNZ, as expected, today took the decision to hike rates 25bp to 0.50% despite a large slice of the economy being in lockdown, and its largest trading partner being in energy meltdown (and a Common Prosperity crackdown and a property break-down). It noted: “Headline CPI inflation is expected to increase above 4% in the near term before returning towards the 2% midpoint over the medium term. The near-term rise in inflation is accentuated by higher oil prices, rising transport costs and the impact of supply shortfalls. These immediate relative price shocks risk leading to more generalised price rises. At this time, measures of core inflation and medium-term inflation expectations remain close to 2%. The Committee noted that further removal of monetary policy stimulus is expected over time, with future moves contingent on the medium-term outlook for inflation and employment.” The Bank also added that the “level of house prices is unsustainable” – implying more tightening or macro-prudential measures to deal with it, or just a warning of a crash? Let’s now watch how raising rates against a massive supply-shock works out for a trade-and-housing dependent economy with low unemployment and a backdrop of fiscal stimulus. Blessed are the manufacturers of dairy products, or not? Geopolitically, today sees the first of what are likely to be fruitless rounds of US-China security pow-wows, this one in Switzerland. That is as: the US bans the export of some nuclear materials to China; the Biden administration reveals how many nukes it has --less than thought-- removing strategic ambiguity (why not their locations too?); John Kerry suggests President Biden was unaware of either the AUKUS deal or the fall-out with France; the CIA admits dozens of its operatives around the world have been killed of late; and Taiwan’s president writes a pleading letter to the world in Foreign Affairs. You know, a normal day in modern markets. Moreover, Poland has agreed to buy US F-35 jets, suggesting integration into the US (and UK) defense umbrella, as well as its separate move towards US LNG networks over Russian - autonomia strategiczna. That leaves any potential EU army in “the year of defense” that is 2022 looking very French, when all the financial muscle is German. If national-security muscle is going to mean more realpolitik control over purse strings ahead, and “they shall beat their ploughshares into swords, and their pruning hooks into spears”, will the EU’s top cheese-makers be blessed and inherit the earth? Tyler Durden Wed, 10/06/2021 - 10:45.....»»

Category: blogSource: zerohedgeOct 6th, 2021

A Florida college is the first in the US to own and operate an electric aircraft - meet Pipistrel"s Velis Electro

Slovenia-based Pipistrel is a light aircraft manufacturer that has built the world's first and only type-rated electric aircraft, known as Velis Electro. Velis Electro Pipistrel Aircraft Aircraft manufacturer Pipistrel has developed the world's first type-certified electric plane, Velis Electro. The light plane can fly up to an hour with a 20-minute reserve and one-hour recharge. Florida Tech operates the aircraft, making it the only American university with an electric plane. See more stories on Insider's business page. Aviation accounts for about 2% of the world's total greenhouse gas emissions, but the industry is focusing on ways to reduce its carbon footprint. One way is by engineering and innovating electric aircraft. Aircraft flying above trees DG Stock/Stutterstock Source: Our World in Data, United just ordered $1 billion worth of eVTOLs from a startup that aims to launch intra-city passenger flights in 2024 Slovenia-based Pipistrel is a light aircraft manufacturer that has built the world's first and only type-rated electric aircraft, known as Velis Electro. Velis Electro Brian Kish/Florida Institute of Technology Source: Pipistrel Velis Electro is a two-seater electric aircraft intended for flight training and has been given a Type Certificate by the European Union Aviation Safety Agency, meaning its design is in compliance with airworthiness and safety standards established by national law. Inside Velis Electro aircraft Pipistrel Source: EASA Velis was built to reduce noise and carbon emissions without compromising safety. As part of the certification process, it demonstrated its ability to operate in the cold, hot, and rain, and withstand crash loads, faults, and battery thermal runaway events. Velis Electro Pipistrel Source: Pipistrel The plane is powered by an innovative liquid-cooled electric system, which runs on two batteries. One is in the nose and the second is behind the cabin. Velis battery Pipistrel Source: Pipistrel While the aircraft can run on one battery, a second is necessary in case the primary battery malfunctions or fails. Velis motor and battery Florida Institute of Technology Source: Pipistrel Velis has a flight range of one hour with a 20-minute reserve. Each aircraft comes with a Pipistrel electric charger that connects to the plane's batteries, which take an hour to charge. Veils charging after first flight Florida Institute of Technology Source: Pipistrel, NEBO Air The plane can be turned on "without hesitation" via four switches and maintains a simplified pilot interface in the cockpit, meaning it looks and feels similar to fuel-powered aircraft. Veils cockpit Pipistrel Source: Pipistrel Velis' low number of moving parts reduces maintenance costs and the aircraft's built-in continuous health-monitoring system lowers the likelihood of malfunctions. Velis charging display Pipistrel Source: Pipistrel One of the best features of the aircraft is its 60 dBa noise level, allowing it to be operated in urban areas without disturbing the community. Velis Electro NEBO Air Source: Pipistrel This feature will be a benefit for students. According to a spokesperson from Pipistrel, noise in the cockpit is almost non-existent, making it easier for students to communicate with instructors. Velis Electro Florida Institute of Technology Source: Florida Institute of Technology, Pipistrel spokesperson Moreover, the aircraft can fly in urban areas during holidays and weekends, which many flight schools cannot do because of noise from fuel-powered aircraft. Velis Electro Brian Kish/Florida Institute of Technology Source: Pipistrel spokesperson While Velis is intended primarily for flight training, airlines and general aviation companies can also purchase the plane. Its low-cost electric operation can save pilots, flight students, and organizations money normally spent on fuel. Velis Electro Pipistrel Source: Pipistrel One of Pipistrel's customers, UK-based NEBO Air, operates two Velis Electro aircraft as a "micro airline," making it the world's first sustainable, cost-effective air service with zero carbon emissions. NEBO flies customers one at a time between London and the British Midlands. Velis Electro NEBO Air Source: NEBO Air Pipistrel's first US customer is Florida Institute of Technology, also known as Florida Tech, making it the first American university to own and operate an electric aircraft. The plane cost $190,000. Velis Electro at Florida Tech's flight school Florida Institute of Technology Source: Space Coast Daily, Florida Institute of Technology Velis is certified to fly in the EU but is still awaiting FAA certification, so Florida Tech is flying it under the "experimental" category. It is the first time the plane has flown in the US, though Florida Tech intends to use the plane for research instead of flight training. Velis Electro at Florida Tech Florida Institute of Technology Source: Florida Institute of Technology Brian Kish, who oversees Florida Tech's flight test engineering program, told Insider he teaches a graduate-level propulsion course and the plane will be used to study electric propulsion. He plans to take all of his students on a flight to get them hands-on experience in the aircraft. Velis Electro Brian Kish/Florida Institute of Technology Source: Brian Kish, Florida Institute of Technology Velis' first test flight was operated by former Florida Tech associate dean Isaac Silver, who flew the plane for 22 minutes and used about a third of the aircraft's battery life. The low-noise flight had zero carbon emissions and totaled only $1.03 in operating costs. Issac Silver with Velis Florida Institute of Technology Source: Florida Institute of Technology The aircraft made its way to Florida Tech through a research partnership with Georgia Tech and the FAA, and a grant from the Buehler Perpetual Trust. The grant was used to purchase the aircraft and the FAA is in the process of awarding the school an $85,000 contract to provide data on Velis' first 50 flight hours. Emil Buehler Center for Aviation Training & Research Luis Freile/Florida Institute of Technology Source: Florida Institute of Technology Florida Tech hopes the addition of Velis will offer a low-cost flight training option and "give students the opportunity for experiential research with cutting edge technology, providing a research value added to their educational experience." Velis Electro at Florida Tech Florida Institute of Technology Source: Florida Institute of Technology Read the original article on Business Insider.....»»

Category: smallbizSource: nytOct 3rd, 2021

A Look At Tesla’s Relatively Tiny Numerical Sequential Sales Growth

Stanphyl Capital’s commentary for the month ended September 30, 2021, discussing their short position in Tesla Inc (NASDAQ:TSLA). Q2 2021 hedge fund letters, conferences and more We remain short the biggest bubble in modern stock market history, Tesla Inc. (TSLA), which currently has a diluted market cap of $868 billion, roughly equal to the $870 […] Stanphyl Capital’s commentary for the month ended September 30, 2021, discussing their short position in Tesla Inc (NASDAQ:TSLA). if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Activist Investing Case Study! Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below! (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more We remain short the biggest bubble in modern stock market history, Tesla Inc. (TSLA), which currently has a diluted market cap of $868 billion, roughly equal to the $870 billion (non-diluted) combined market caps of Toyota ($253 billion), VW ($141 billion), Daimler ($96 billion), GM ($76 billion), BMW ($65 billion), Stellantis ($60 billion), Ford ($57 billion), Honda ($53 billion), Hyundai ($49 billion) and Nissan ($20 billion), despite annualized sales for Tesla of around 800,000 cars a year to their over 50 million. The core points of our Tesla short thesis are: Tesla has no “moat” of any kind; i.e., nothing meaningfully proprietary in terms of electric car technology, while existing automakers—unlike Tesla­—have a decades-long “experience moat” of knowing how to mass-produce, distribute and service high-quality cars consistently and profitably, as well as the ability to subsidize losses on electric cars with profits from their conventional cars. Excluding sunsetting emission credit sales Tesla is barely profitable. Growth in sequential unit demand for Tesla’s cars has slowed to a crawl. Elon Musk is a pathological liar who under the terms of his SEC settlement cannot deny having committed securities fraud. Tesla's Expected Q3 Sales Growth Latest estimates are that Tesla is expected to report around 29,000 more deliveries for Q3 vs. Q2 (approximately 230,000 vs. Q1’s 201,000), a rounding error for an auto company trading at even one-tenth of Tesla’s valuation. If in any quarter GM or VW or Toyota sold 2.55 million vehicles instead of 2.58 million or 2.525 million, no one would pay the slightest bit of attention to the difference. Well guess what? Seeing as Tesla is being valued at more than eleven GMs, it’s time to start looking at its relatively tiny numerical sequential sales growth, rather than Wall Street’s sell-side hype of “percentage off a small base.” In other words, if you want to be valued at a giant multiple of “the big boys,” it’s time you were treated as a big boy! Meanwhile in July, thanks to an suspiciously high gross margin and very “non-growthy” reduced R&D expense, Tesla reported an improved Q2 2021, claiming to have earned $788 million excluding $354 million of pure-profit emission credit sales (excluded because they’ll almost entirely disappear some time next year when other automakers will have enough EVs of their own). However, that earnings number also includes what I estimate to be around $300 million in unsustainably low warranty provisioning, and after adjusting for that plus the credit sales, I believe Tesla earned a sustainable .43/share, which annualizes to $1.72. An auto industry PE multiple of 10x would thus make TSLA worth around $17/share (admittedly, more than the “$0” I previously expected). A “growth multiple” of 20x would value it at $34, which is more than a 95% discount to September’s closing price of $775. And before you tell me that a 100% premium to the industry’s PE ratio isn’t enough, keep in mind that—as noted earlier—Tesla’s sequential unit growth is an auto industry rounding error. In fact, one could argue that Tesla’s multiple should carry a discount, considering the massive legal and financial liabilities continually generated by its pathologically lying CEO. Meanwhile, on the Q2 earnings call Musk admitted that the so-called “Full Self Driving” he’s been selling for five years (and that Consumer Reports calls outright dangerous) doesn’t work, and he said it again in August following an “AI Day” in which he tried to cover up the Tesla’s autonomy cluelessness with an inert plastic statue of a robot and a man dancing in a unitard. (You had to see it to believe it and then you still wouldn’t believe it!)  In a saner regulatory environment Tesla’s selling of “Full Self Driving” for five years now would be considered “consumer fraud,” and indeed in August two U.S. Senators finally demanded an FTC investigation while the NHTSA opened yet another safety investigation. (For all known Tesla deaths see TeslaDeaths.com.) Will there be major write-downs and refunds given, killing the company’s slight “profitability”? Stay tuned! And remember, the 2021 overview from Guidehouse Insights rates Tesla dead last among autonomous competitors: The Chinese Government's Love Affair With Tesla Is Over Another favorite hype story from Tesla fans has been “the China market.” Sadly, that government’s love affair with Tesla is over and Q2 Tesla sales there were down 10% from Q1 while Q3 looks to be down approximately 10% more. In July Tesla sold just 8621 cars in China (with the balance of that month’s production exported to Europe) and in August only 12,885. This an absolute disaster for Tesla, as massive July price cuts on both the Model Y and the Model 3 meant that in August in China it was supposed to sell around 30,000; instead it had to export all that excess capacity. (It still may sell around 50,000 in China in September, but so what? With insignificantly small sequential growth for three quarters now, Tesla’s Chinese “hypergrowth” story is over.) Remember when Musk claimed Tesla would have so much domestic Chinese demand that it would need multiple factories there to satisfy it? Ah, the good old days! Another favorite Tesla hype story has been built around so-called “proprietary battery technology.” In fact though, Tesla has nothing proprietary there—it doesn’t make them, it buys them from Panasonic, CATL and LG, and it’s the biggest liar in the industry regarding the real-world range of its cars. A recent story has been the supposedly imminent arrival of a new “4680” design that Teslemmings and their sell-side Wall Street shills claim will allow Tesla to “leapfrog” the batteries of its competitors. Sadly for them though, in a June interview with the CEO of Tesla’s primary battery supplier Panasonic, we learned that not only are these cells still in the “production testing” phase (and thus nowhere near ready for commercial production), but that if they *do* work, Panasonic will sell them to anyone.  And then news broke that Tesla extended its current battery supply deal with CATL until the year 2025, and in August it revealed it will even be using those Chinese-made batteries in the U.S. If those great proprietary 4680s were coming any time soon, why would Tesla need to do that? Obviously it wouldn’t, which explains why in the Q2 earnings press release (and on the call) Musk admitted they don’t know how long (if ever) it will take to get those 4680 batteries into production. Oh well… I guess it’s on to the next nonsensical stock pump! Meanwhile, the quality of the Model Y—is awful, and that car faces current (or imminent) competition from the much better built electric Audi Q4 e-tron, BMW iX3, Mercedes EQA, Volvo XC40 Recharge, Volkswagen ID.4, Ford Mustang Mach E, Nissan Ariya, Hyundai Ioniq 5 and Kia EV6. And Tesla’s Model 3 now has terrific direct “sedan competition” from Volvo’s beautiful Polestar 2 and the premium version of Volkswagen’s ID.3 (in Europe), and later this year from the BMW i4, plus multiple local competitors in China. And in the high-end electric car segment worldwide the Audi e-tron and Porsche Taycan outsell the Models S & X (and the newly updated Tesla models with their dated exteriors and idiotic shifters & steering wheels won’t change this), while the spectacular new Mercedes EQS and Audi e-Tron GT make any Tesla look like a Yugo, while the extremely well reviewed new BMW iX does the same to the Tesla Model X. And oh, the joke of a “pickup truck” Tesla previewed in 2019 (and still hasn’t shown in production-ready form) won’t be much of “growth engine” either, as it will enter a dogfight of a market; in fact, in May Ford formally introduced its terrific new all-electric F-150 Lightning which now has over 150,000 reservations and Rivian’s pick-up has gotten fantastic early reviews. Also, the Tesla semi-truck  has been delayed until at least 2022 (and possibly forever, as it depends on the aforementioned “4680” batteries that don’t exist). Meanwhile, Tesla quality ranks 30th among 33 brands in the most recent J.D. Power dependability survey… …and second-to-last in the most recent Consumer Reports reliability survey: …while the most recent What Car? survey shows similar results with Tesla finishing #29 out of 31, and now quality is slipping in China. Flawed Autopilot System Regarding safety, as noted earlier in this letter, Tesla continues to deceptively sell its hugely dangerous so-called “Autopilot” system, which Consumer Reports has completely eviscerated; God only knows how many more people this monstrosity unleashed on public roads will kill, despite the NTSB condemning it. Elsewhere in safety, in 2020 the Chinese government forced the recall of tens of thousands of Teslas for a dangerous suspension defect the company spent years trying to cover up, and now Tesla has been hit by a class-action lawsuit in the U.S. for the same defect. Tesla also knowingly sold cars that it knew were a fire hazard and did the same with solar systems, and after initially refusing to do so voluntarily, it was forced to recall a dangerously defective touchscreen. In other words, when it comes to the safety of customers and innocent bystanders, Tesla is truly one of the most vile companies on Earth. Meanwhile the massive number of lawsuits of all types against the company continues to escalate. So here is Tesla’s competition in cars... (note: these links are regularly updated) Porsche Taycan Porsche Taycan Cross Turismo Porsche Macan Electric SUV Officially Coming in 2023 Volkswagen ID.3 Headlines VW's Electrified Future Volkswagen ID.4 Electric SUV Volkswagen ID 6 to arrive with 435-mile range in 2023 Volkswagen Aero B: new electric Passat equivalent spied VW’s Cupra brand counts on performance for Born EV Cupra, VW brand to get entry-level battery-powered cars Audi e-tron Audi e-tron Sportback Audi E-tron GT Audi Q4 e-tron Audi Q6 e-tron confirmed for 2022 launch Audi previews long-range A6 e-tron EV Audi TT set to morph into all-electric crossover Hyundai Ioniq 5 Hyundai Ioniq 6 spotted ahead of 2022 launch Hyundai Kona Electric Genesis reveals their first EV on the E-GMP platform, the electric GV60 crossover Genesis aims to go all-electric from 2025 Kia Niro Electric: 239-mile range & $39,000 before subsidies Kia EV6: Charging towards the future Kia EV4 on course to grow electric SUV range Jaguar’s All-Electric i-Pace Jaguar to become all-electric brand; Land Rover to Get 6 electric models Daimler will invest more than $47B in EVs and be all-electric ready by 2030 Mercedes EQS: the first electric vehicle in the luxury class Mercedes EQS SUV takes shape Mercedes-Benz unveils EQE electric sedan with impressive 400-mile range Mercedes EQC electric SUV available now in Europe & China Mercedes-Benz Launches the EQV, its First Fully-Electric Passenger Van Mercedes-Benz EQB Makes Its European Debut, US Sales Confirmed Mercedes-Benz unveils EQA electric SUV with 265 miles of range and ~$46,000 price Ford Mustang Mach-E Available Now Ford F-150 Lightning electric pick-up available 2022 Ford set to launch ‘mini Mustang Mach-E’ electric SUV in 2023 Ford to offer EV versions of Explorer, Aviator, ‘rugged SUVs' Volvo Polestar 2 Volvo XC40 Recharge Volvo C40 electric sedan to challenge Tesla Model 3, VW ID3 Polestar 3 will be an electric SUV that shares its all-new platform with next Volvo XC90 Chevy updates, expands Bolt EV family as price drops Cadillac All-Electric Lyriq Available Spring 2022 GMC ALL-ELECTRIC SUPERTRUCK HUMMER EV GM to build electric Silverado in Detroit with estimated range of more than 400 miles GMC to launch electric Hummer SUV in 2023 GM will offer 30 all-electric models globally by 2025 GM Launches BrightDrop to Electrify the Delivery of Goods and Services Nissan vows to hop back on EV podium with Ariya Nissan LEAF e+ with 226-mile range is available now BMW leads off EV offensive with iX3 BMW expands EV offerings with iX tech flagship and i4 sedan 2022 BMW iX1 electric SUV spied BMW 3-series EV coming Rivian R1T Is the Most Remarkable Pickup We’ve Ever Driven Renault upgrades Zoe electric car as competition intensifies Renault Dacia Spring Electric SUV Renault to boost low-volume Alpine brand with 3 EVs Renault's electric Megane will debut new digital cockpit Stellantis promises 'heart-of-the-market SUV' from new, 8-vehicle EV platform Alfa Romeo is latest Stellantis brand to get all-electric future Peugeot e-208 PEUGEOT E-2008: THE ELECTRIC AND VERSATILE SUV Peugeot 308 will get full-electric version Citroen compact EV challenges VW ID3 on price Maserati to launch electric sports car Mini Cooper SE Electric Toyota steps up electric vehicle push with plans for 15 new models Opel sees electric Corsa as key EV entry 2021 Vauxhall Mokka revealed as EV with sharp looks, massive changes Skoda Enyaq iV electric SUV offers range of power, battery sizes Electric Skoda Enyaq coupe to muscle-in on Tesla Model 3 Skoda plans small EV, cheaper variants to take on French, Korean rivals Nio to launch in five more European countries after Norway BYD will launch electric SUV in Europe The Lucid Air Achieves an Estimated EPA Range of 517 Miles on a Single Charge Bentley converting to electric-only brand Rolls-Royce is working on EV called 'Silent Shadow' Aston Martin will build electric vehicles in UK from 2025 Meet the Canoo, a Subscription-Only EV Pod Coming in 2021 Two new electric cars from Mahindra in India; Global Tesla rival e-car soon Former Saab factory gets new life building solar-powered Sono Sion electric cars Foxconn aims for 10% of electric car platform market by 2025 And in China… How VW Group plans to dominate China's EV market VW Goes Head-to-Head With Tesla in China With New ID.4 Crozz Electric SUV Volkswagen’s ID.3 EV to be produced by JVs with SAIC, FAW in 2021 2022 VW ID.6 Revealed With Room For Seven And Two Electric Motors China-built Audi e-tron rolls off production line in Changchun Audi Q2L e-tron debuts at Auto Shanghai Audi will build Q4 e-tron in China Audi in cooperation company for local electric car production with FAW FAW Hongqi starts selling electric SUV with 400km range for $32,000 FAW (Hongqi) to roll out 15 electric models by 2025 BYD goes after market left open by Tesla with four cheaper models for budget-conscious buyers BYD said to launch premium NEV brand ‘Dolphin’ in 2022 Top of Form Bottom of Form Daimler & BYD launch DENZA electric vehicle for the Chinese market Geely announces premium EV brand Zeekr Geely, Mercedes-Benz launch $780 million JV to make electric smart-branded cars Mercedes styled Denza X 7-seat electric SUV to hit market Mercedes ‘makes mark’ with China-built EQC BMW, Great Wall to build new China plant for electric cars BAIC Goes Electric, & Establishes Itself as a Force in China’s New Energy Vehicle Future BAIC BJEV, Magna ready to pour RMB2 bln in all-electric PV manufacturing JV Toyota, BYD will jointly develop electric vehicles for China Lexus to launch EV in China taking on VW and Tesla GAC Aion about to start volume production of 1,000-km range AION LX GAC Toyota to ramp up annual capacity by 400,000 NEVs GAC kicks off delivery of HYCAN 007 all-electric SUV Nio – Ready For Tomorrow Nio steps up plans for mass-market brand to compete with VW, Toyota Xpeng Motors sells multiple EV models SAIC-GM to build Ultium EV platform in Wuhan Chevrolet Menlo Electric Vehicle Launched in China Buick Launches VELITE 6 PLUS MAV Electric Vehicle in China Buick Velite 7 EV And Velite 6 PHEV Launch In China Dongfeng launches the all-electric Voyah  PSA to accelerate rollout of electrified vehicles in China SAIC, Alibaba-backed EV brand IM begins presale of first model L7 Hyundai Motor Transforming Chongqing Factory into Electric Vehicle Plant Polestar said to plan China showroom expansion to compete with Tesla Jaguar Land Rover's Chinese arm invests £800m in EV production Renault reveals series urban e-SUV K-ZE for China Renault & Brilliance detail electric van lineup for China Renault forms China electric vehicle venture with JMCG Honda to roll out over 20 electric models in China by 2025 Geely launches new electric car brand 'Geometry' – will launch 10 EVs by 2025 Geely, Foxconn form partnership to build cars for other automakers Fiat Chrysler, Foxconn Team Up for Electric Vehicles Baidu to create an intelligent EV company with automaker Geely Leapmotor starts presale of C11 electric SUV on Jan. 1 2021 Changan forms subsidiary Avatar Technology to develop smart EVs with Huawei, CATL WM Motors/Weltmeister Chery Seres Enovate China's cute Ora R1 electric hatch offers a huge range for less than US$9,000 Singulato JAC Motors releases new product planning, including many NEVs Seat to make purely electric cars with JAC VW in China Iconiq Motors Hozon Aiways Skyworth Auto Youxia CHJ Automotive begins to accept orders of Leading Ideal ONE Infiniti to launch Chinese-built EV in 2022 Human Horizons Chinese smartphone giant Xiaomi to launch electric car business with $10 billion investment Lifan Technology to roll out three EV models with swappable batteries in 2021 Here’s Tesla’s Competition In Autonomous Driving... Waymo ranked top & Tesla last in Guidehouse leaderboard on automated driving systems Tesla has a self-driving strategy other companies abandoned years ago Fiat Chrysler, Waymo expand self-driving partnership for passenger, delivery vehicles Waymo and Lyft partner to scale self-driving robotaxi service in Phoenix Volvo, Waymo partner to build self-driving vehicles Jaguar and Waymo announce an electric, fully autonomous car Renault, Nissan partner with Waymo for self-driving vehicles Cruise and GM Team Up with Microsoft to Commercialize Self-Driving Vehicles Cadillac Super Cruise Sets the Standard for Hands-Free Highway Driving Honda Joins with Cruise and General Motors to Build New Autonomous Vehicle Honda launching Level 3 autonomous cars Volkswagen moves ahead with Autonomous Driving R&D for Mobility as a Service Volkswagen teams up with Microsoft to accelerate the development of automated driving VW taps Baidu's Apollo platform to develop self-driving cars in China Ford's electric Mustang will offer hands-free driving technology in 2021 ARGO AI AND FORD TO LAUNCH SELF-DRIVING VEHICLES ON LYFT NETWORK BY END OF 2021 Hyundai and Kia Invest in Aurora Toyota, Denso form robotaxi partnership with Aurora Aptiv and Hyundai Motor Group complete formation of autonomous driving joint venture Amazon’s Zoox unveils electric robotaxi that can travel up to 75 mph Nvidia and Mercedes Team Up to Make Next-Gen Vehicles Daimler's heavy trucks start self-driving some of the way SoftBank, Toyota's self-driving car venture adds Mazda, Suzuki, Subaru Corp, Isuzu Daihatsu  Continental & NVIDIA Partner to Enable Production of Artificial Intelligence Self-Driving Cars Mobileye and Geely to Offer Most Robust Driver Assistance Features Mobileye Starts Testing Self-Driving Vehicles in Germany Mobileye and NIO Partner to Bring Level 4 Autonomous Vehicles to Consumers Lucid Chooses Mobileye as Partner for Autonomous Vehicle Technology AutoX, backed by Alibaba Nissan gives Japan version of Infiniti Q50 hands-free highway driving Hyundai to start autonomous ride-sharing service in Calif. Pony.ai raises $462 million in Toyota-led funding Baidu kicks off trial operation of Apollo robotaxi in Changsha Toyota to join Baidu's open-source self-driving platform Baidu, WM Motor announce strategic partnership for L3, L4 autonomous driving solutions Volvo will provide cars for Didi's self-driving test fleet BMW and Tencent to develop self-driving car technology together BMW, NavInfo bolster partnership in HD map service for autonomous cars in China GM Invests $300 M in Momenta to deliver self-driving technologies in China FAW Hongqi readies electric SUV offering Level 4 autonomous driving Tencent, Changan Auto Announce Autonomous-Vehicle Joint Venture Huawei teams up with BAIC BJEV, Changan, GAC to co-launch self-driving car brands GAC Aion, DiDi Autonomous Driving to co-develop driverless NEV model BYD partners with Huawei for autonomous driving Lyft, Magna in Deal to Develop Hardware, Software for Self-Driving Cars Xpeng releases autonomous features for highway driving Nuro Becomes First Driverless Car Delivery Service in California Deutsche Post to Deploy Test Fleet Of Fully Autonomous Delivery Trucks ZF autonomous EV venture names first customer Magna’s new MAX4 self-driving platform offers autonomy up to Level 4 Groupe PSA’s safe and intuitive autonomous car tested by the general public Mitsubishi Electric to Exhibit Autonomous-driving Technologies in New xAUTO Test Vehicle Apple acquires self-driving startup Drive.ai Motional to begin robotaxi testing with Hyundai Ioniq 5 in Los Angeles JD.com Delivers on Self-Driving Electric Trucks NAVYA Unveils First Fully Autonomous Taxi Fujitsu and HERE to partner on advanced mobility services and autonomous driving Here’s where Tesla’s competition will get its battery cells… Panasonic (making deals with multiple automakers) LG Samsung SK Innovation Toshiba CATL BYD Volkswagen to Build Six Electric-Vehicle Battery Factories in Europe How GM's Ultium Battery Will Help It Commit to an Electric Future Ultium (General Motors & LG joint venture) GM to develop lithium-metal batteries with SolidEnergy Systems Ford, SK Innovation announce EV battery joint venture BMW & Ford Invest in Solid Power to Secure All Solid-State Batteries for Future Electric Vehicles Daimler joins Stellantis as partner in European battery cell venture ACC Renault signs EV battery deals with Envision, Verkor for French plants Nissan to build $1.4bn EV battery plant in UK with Chinese partner UK companies AMTE Power and Britishvolt plan $4.9 billion investment in battery plants Toyota's game-changing solid-state battery en route for 2021 debut Freyr Verkor Farasis Microvast Akasol Cenat Wanxiang Eve Energy Svolt Romeo Power ProLogium Hyundai Motor developing solid-state EV batteries Daimler Morrow Here’s Tesla’s Competition In Charging Networks... Electrify America is spending $2 billion building a high-speed U.S. charging network GM, EVgo partner to expand U.S. charging network Circle K Owner Plans Electric-Car Charging Push in U.S., Canada 191 U.S. Porsche dealers are installing 350kw chargers ChargePoint to equip Daimler dealers with electric car chargers GM and Bechtel plan to build thousands of electric car charging stations across the US Ford introduces 12,000 station charging network, teams with Amazon on home installation Shell Plans To Deploy Around 500,000 Charging Points Globally By 2025 Petro-Canada Introduces Coast-to-Coast Canadian Charging Network Volta is rolling out a free charging network Ionity Europe E.ON and Virta launch one of the largest intelligent EV charging networks in Europe Volkswagen plans 36,000 charging points for electric cars throughout Europe Smatric has over 400 charging points in Austria Allego has hundreds of chargers in Europe PodPoint UK charging stations BP Chargemaster/Polar is building stations across the UK Instavolt is rolling out a UK charging network Fastned building 150kw-350kw chargers in Europe Aral To Install Over 100 Ultra-Fast Chargers In Germany Deutsche Telekom launches installation of charging network for e-cars Total to build 1,000 high-powered charging points at 300 European service-stations NIO teams up with China’s State Grid to build battery charging, swapping stations Volkswagen-based CAMS launches supercharging stations in China Volkswagen, FAW Group, JAC Motors, Star Charge formally announce new EV charging JV BMW to Build 360,000 Charging Points in China to Juice Electric Car Sales BP, Didi Jump on Electric-Vehicle Charging Bandwagon Evie rolls out ultrafast charging network in Australia Evie Networks To Install 42 Ultra-Fast Charging Sites In Australia And here’s Tesla’s competition in storage batteries… Panasonic Samsung LG BYD AES + Siemens (Fluence) GE Bosch Hitachi ABB Toshiba Saft Johnson Contols EnerSys SOLARWATT Schneider Electric Sonnen Kyocera Generac Kokam NantEnergy Eaton Nissan Tesvolt Kreisel Leclanche Lockheed Martin EOS Energy Storage ESS UET electrIQ Power Belectric Stem ENGIE Redflow Renault Primus Power Simpliphi Power redT Energy Storage Murata Bluestorage Adara Blue Planet Tabuchi Electric Aggreko Orison Moixa Powin Energy Nidec Powervault Kore Power Shanghai Electric Schmid 24M Ecoult Innolith LithiumWerks Natron Energy Energy Vault Ambri Voltstorage Cadenza Innovation Morrow Gridtential Villara Elestor Thanks and stay healthy, Mark Spiegel Updated on Oct 1, 2021, 11:05 am (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkOct 1st, 2021

PASSUR Aerospace Announces Five Consecutive Quarters of Income from Operations, With Income from Operations of $811,000 for the Nine Months Ended July 31, 2021

STAMFORD, Conn., Oct. 1, 2021 /PRNewswire/ -- PASSUR® Aerospace, Inc., a global leader in digital operational excellence, announced income from operations of $202,000 and $811,000, respectively, for the three and nine months ended July 31, 2021, compared to income from operations of $9,000 and a loss from operations of $1,971,000 respectively, in the same periods in the prior fiscal year (the loss from operations in the prior year for the nine months ended July 31, 2020 was before the one-time impairment charge of $9,874,000 taken in the second quarter of the prior fiscal year).   PASSUR's operating performance has improved despite reporting lower revenues of $1,510,000 and $4,670,000, respectively, for the three and nine months ended July 31,2021, compared with revenues of $2,208,000 and $9,612,000, respectively, for the same periods in the prior fiscal year. The Company had a net loss of $64,000, or $0.01 per diluted share, and net income of $21,000, or $0.00 per diluted share, respectively, for the three and nine months ended July 31, 2021, compared to net losses of $250,000, or $0.03 per diluted share, and $12,564,000, or $1.63 per diluted share, respectively, for the same periods in the prior fiscal year. The net loss for the nine months ended July 31, 2020 was after the impairment charge of $9,874,000 noted above. "We continue to see high renewal rates, as well as increasing new business opportunities, despite the ongoing COVID-19 pandemic. This is a testament to the value that the market sees from our ARiVA platform, and the operational efficiencies we can bring to our customers," stated Brian Cook, PASSUR's President and CEO.  During this quarter, we also relaunched our website, highlighting our ARiVATM platform capabilities and spotlighting our growing partnerships within the aviation data industry. Visit our website to view the full 10-Q.  About PASSUR® Aerospace, Inc. PASSUR Aerospace, Inc. is the operations platform of choice for aviation experts, offering a unique combination of global data, decision support, and subject matter expertise solutions to improve operational efficiencies. Our platform and people help deliver actionable-data and user-friendly tools to corporate and operations leadership. Specifically, PASSUR products identify creative ways to minimize and eliminate bottleneck capacity constraints, react to irregular operations (IROPS), restart operations after an interruption in service, and enhance the efficiency of the daily schedule. Our collaborative framework uniquely enhances data sharing, communications, and decision-making within and between stakeholders in an operations ecosystem. PASSUR provides its solutions to the largest airlines and airports globally including in the United States, Canada, and Latin America. Visit PASSUR Aerospace's website at www.passur.com for updated products, solutions, and news.  Forward Looking StatementsThis press release contains ":forward-looking statements: within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's future plans, objectives, and expected performance. Forward-looking statements are subject to risks, uncertainties and assumptions, and are identified by words such as "will", "expects", "estimates", "projects", "anticipates", "believes", "intends", "plans", "may", "pending", "continues", "should", "could" and other similar words. All statements other than statements of historical fact are considered to be forward-looking statements and such forward-looking statements, including statements of management's expectations and beliefs, are based on preliminary information and assumptions and expectations of future events.  The Company cannot and does not guarantee that such information, assumptions, and expectations are accurate or will be realized. These forward-looking statements are not guarantees of future performance or results, and should be evaluated in light of important risk factors, assumptions, and uncertainties that could cause the Company's results to differ in material respects, including, without limitation,  those related to customer needs, budgetary constraints, competitive pressures, the success of airline trials,  the Company's maintenance of above average quality of its product and services, as well as potential regulatory changes. Additional uncertainties include, without limitation, uncertainties relating to the ability of the Company to sell its existing product and professional service lines, plus new products and professional services, as well as the potential for terrorist attacks, changes in fuel costs, airline bankruptcies and consolidations, and economic conditions, including, without limitation, the severity and duration of the continuing COVID-19 pandemic and its adverse impact on the U.S. and world aviation and travel industries.  Further information regarding some of the factors that could affect the Company's results and cause those results to vary materially from those currently anticipated is contained on Forms 10-K - including under the heading entitled "Risk Factors", 10-Q, and other reports filed with the Securities and Exchange Commission. In addition, undue reliance should not be placed on the Company's forward-looking statements.  Any forward-looking statement made by the Company in this press release speaks only as of the date on which we made it and reflect management's analysis, judgments, belief, or expectation only as of such date. Except as required by law, the Company disclaims any obligation to update its risk factors or to publicly announce updates to the forward-looking statements contained in this press release to reflect new information, future events, or other developments.     PASSUR Aerospace, Inc. and Subsidiary Consolidated Balance Sheets July 31, 2021 October 31, 2020 (unaudited) Assets Current assets: Cash $                  3,016,061 $                  2,748,066.....»»

Category: earningsSource: benzingaOct 1st, 2021

The 20 best of the largest airports in the US, according to travelers

J.D. Power revealed its 2021 North America Airport Satisfaction Study on Wednesday, naming Miami International Airport as the top mega airport in the US. Miami International Airport mariakray/Shutterstock J.D. Power revealed Miami International Airport as the best mega airport in the US in terms of customer satisfaction. The study ranked airports based on six factors, like terminal facilities and vendor availability. The company says customer satisfaction decreased from January to July due to changing expectations among travelers. See more stories on Insider's business page. J.D. Power revealed its 2021 North America Airport Satisfaction Study on Wednesday, naming Miami International Airport as the top mega airport in the US, earning 828 out of a possible 1,000 customer satisfaction points. The data analytics company looked at six factors in ranking each airport, including, from most to least important, terminal facilities; airport arrival/departure; baggage claim; security check; check-in/baggage check; and food, beverage, and retail.Overall, mega airports, which J.D. Power defines as having more than 33 million passengers per year, received an average score of 798, up 18 points from 2020. This year saw a record-setting average score of 802 for all US airports, though the highest customer satisfaction occurred in the first half of the study (July 2020 to January 2021) when passenger traffic was still low and dropped in the second half (January 2021 to July 2021) as volume picked up. "Airport customer satisfaction reached all-time highs when passenger volumes were severely suppressed by the pandemic, but as leisure travel rebounded sharply throughout the spring and summer of 2021, we saw an expected downturn in satisfaction. Ultimately, the data conveys changing expectations among travelers. Early in the pandemic, passengers were satisfied with any shop or restaurant being open, but they now expect full service at the airport," explained Michael Taylor, travel intelligence lead at J.D. Power.While passenger volumes have increased to 75% of pre-pandemic levels, according to J.D. Power, many travelers are arriving at airports with limited food, beverage, and retail options, which are key for a good airport experience. The company says labor shortages are to blame for the lack of vendors.Here's a closer look at J.D. Power's top 20 airports for customer satisfaction in the US.20. Chicago O'Hare International Airport: 772 points Thomas Pallini/Business Insider Chicago O'Hare International Airport dropped one spot from 19 to 20 in this year's list. The airport is the city's largest and acts as a base for United Airlines and American Airlines and as a focus city for Frontier Airlines. Before becoming O'Hare, the land was used as an airfield for Douglas C-54 military production during WWII, but after the closure of Douglas, the building was renamed Orchard Field Airport. O'Hare's "ORD" IATA code is a homage to its original name.19. Toronto Pearson International Airport: 780 points Shutterstock Toronto Pearson International Airport is the only Canadian airport to make the top 20 list, though it fell one spot from 18 in 2020 to 19 in 2021. Toronto is the country's busiest airport and has the largest terminal of any airport in Canada. It serves over 40 commercial, charter, and cargo airlines and is a hub for Air Canada, Sunwing Airlines, WestJet, FedEx Express, Air Georgian, and Air Transat.18. Boston Logan International Airport: 784 points JOSEPH PREZIOSO/AFP/Getty Boston Logan International Airport dropped six spots from 12 to 18 in this year's rankings. The airport is the largest in New England in terms of passengers traffic and cargo handling and the busiest in the Northeast behind the New York City metropolitan area. Boston is a hub for Delta Air Lines and Cape Air and is a focus city for JetBlue Airways.17. Seattle-Tacoma International Airport: 789 points EQRoy/Shutterstock Seattle-Tacoma International Airport fell one spot from 2020's list to 17. It is the city's largest and primary commercial airport serving over 25 airlines and an average of three million passengers per year. Seattle-Tacoma is one of the US' fasting growing airports and is a hub for Alaska Airlines and Horizon Air.15. Newark Liberty International Airport: 792 points (tie) Terminal C at Newark Liberty International Airport. Thomas Pallini/Business Insider Newark Liberty International Airport jumped five spots to 15 this year, tieing with Los Angeles International Airport. Newark is the country's oldest airfield, having opened in 1928, and home to America's first commercial terminal. Today, the airport serves over 30 airlines and is a hub for United Airlines and FedEx Express.15. Los Angeles International Airport: 792 points (tie) Los Angeles International Airport OLOS/Shutterstock Los Angeles International Airport tied with Newark Liberty International Airport for its number 15 spot, up to two from 2020. The airport is the second busiest airport in the US and the fourth busiest in the world serving over 69 airlines. Los Angeles is a hub for Alaska, United, Delta, American, and Southwest, and is a focus city for Allegiant and JetBlue.13. Fort Lauderdale-Hollywood International Airport: 793 points (tie) Fort Lauderdale-Hollywood International Airport YES Market Media/Shutterstock Fort Lauderdale-Hollywood International Airport tied with Denver International Airport in this year's rankings, jumping from the number 13 spot in 2020 and expanding from a large to a mega airport in 2021. Fort Lauderdale is one of Florida's busiest airports carrying over 36 million passengers in 2019. The airport serves 19 airlines and is a hub for Silver Airways and Spirit Airlines and is a focus city for JetBlue and Allegiant.13. Denver International Airport: 793 points (tie) JW_PNW/Shutterstock Denver International Airport tied with Fort Lauderdale-Hollywood International Airport, dropping from spot number five to 13 in 2021. Denver is the fifth busiest airport in the US and 20th busiest in the world, having handled 69 million passengers in 2019. The airport is the US' largest airport in terms of size and serves as a hub for United and Frontier.11. San Francisco International Airport: 796 points (tie) San Francisco International Airport San Francisco International Airport tied with Charlotte Douglas International Airport in this year's rankings, jumping four spots. The airport is the second busiest in California after Los Angeles and hosts 59 airlines serving dozens of international and domestic markets. San Francisco is a hub for United and Alaska.11. Charlotte Douglas International Airport: 796 points (tie) Charlotte Douglas International Airport. Fang Deng/Shutterstock Charlotte Douglas International Airport tied with San Francisco International Airport at number 11, jumping one spot from 2020. Charlotte is the 12th busiest airport in North America by passenger traffic, handling nearly 50 million travelers per year. The airport hosts over 30 airlines and is a hub for American Airlines.9. Hartsfield-Jackson Atlanta International Airport: 798 points (tie) The main hall inside Hartsfield-Jackson Atlanta International Airport. ESBProfessional/shutterstock Hartsfield-Jackson Atlanta International Airport ranked number nine this year, jumping up one spot and tieing with Detroit Metropolitan Airport. Atlanta is within a two-hour flight of 80% of the US population and handled over 100 million travelers in 2019. The airport serves over 30 airlines and is the primary hub for Delta Air Lines. The airport held the title of the world's busiest airport for years, but the pandemic plummeted its passenger traffic in 2020. 9. Detroit Metropolitan Airport: 798 points (tie) Detroit Metropolitan Airport afrimu/Shutterstock Detroit Metropolitan Airport tied with Hartsfield-Jackson Atlanta International Airport to take the number nine spot this year, dropping two spots from number seven in 2020. Detroit sees over 36 million passengers per year and serves more than 25 airlines. The airport is a hub for Delta Air Lines and Spirit Airlines.8. George Bush Intercontinental Airport: 801 points View of George Bush Intercontinental Airport Terminal E at night Eblis/shutterstock George Bush Intercontinental Airport ranked eighth this year after not making the top 20 list last year. Named after the 41st president, George Bush airport hosts over 30 airlines and acts as a hub for Atlas Air and United Airlines. Houston serves over 30 markets in Mexico, which is more than any other airport in the US. 7. Dallas/Fort Worth International Airport: 805 points Taesik Park/Shutterstock Dallas/Fort Worth International Airport ranked seven this year, dropping two spots from number five in 2020. The airport hosts over 25 airlines and is the second-largest airport in terms of area size behind Denver International Airport. Dallas is American Airlines' primary operating hub and is a key transfer point for US-Latin America travelers.6. McCarran International Airport: 806 points McCarran International Airport Tupungato/Shutterstock McCarran International Airport dropped three spots from three to six in 2021's top 20 list. McCarran is Las Vegas' primary airport handling over 50 million passengers in 2019. The airport hosts over 20 airlines and is a focus city for Allegiant Air, Frontier Airlines, JSX, Southwest Airlines, Spirit Airlines, and Sun Country Airlines. McCarran is one of only two airports in the US that have slot machines, the other being Reno-Tahoe International Airport.5. Phoenix Sky Harbor International Airport: 808 points Phoenix Sky Harbor International Airport Markus Mainka/Shutterstock Phoenix Sky Harbor International Airport was the top airport in J.D. Power's 2020 list but dropped to number five this year. Sky Harbor is known as the friendliest airport in the US, with 400 volunteers helping travelers navigate the airport. It serves more than 45 million passengers a year and is a major hub for American Airlines.4. Orlando International Airport: 812 points Sean Pavone/Shutterstock Orlando International Airport jumped two spots from six in 2020 to four in 2021. The airport is the second-busiest in Florida serving over 50 million passengers in 2019, though it does not serve as a hub for any airline. However, it is a focus city for Frontier Airlines, JetBlue Airways, Southwest Airlines, and Spirit Airlines. Orlando's IATA code "MCO" comes from McCoy Air Force Base, named after Colonel Michael N. W. McCoy, which is what sat on the land before the airport was built.3. Minneapolis−Saint Paul International Airport: 815 points The atrium at Minneapolis-Saint Paul International Airport Jeffrey J. Coleman/shutterstock Minneapolis−Saint Paul International Airport jumped four spots to number three in this year's rankings. The airport is nestled among a few cities in Minnesota, including Minneapolis, St. Paul, Bloomington, and Eagan, and is the busiest airport in the upper Midwest region. Minneapolis-St. Paul serves over 25 airlines and acts as a hub for Sun Country Airlines and Delta Air Lines.2. John F. Kennedy International Airport: 817 points John F. Kennedy International Airport, New York. Spencer Platt/Getty Images New York's John F. Kennedy International Airport is this year's runner-up, jumping two spots from 2020. Named after the 35th president, JFK airport is a major international gateway serving over 60 million passengers in 2019 and operating flights to all six inhabited continents. JFK is a hub for JetBlue Airways, American Airlines, and Delta Air Lines.1. Miami International Airport: 828 points Miami International Airport mariakray/Shutterstock Miami International Airport took the number one spot in the 2021 J.D. Power top 20 rankings, jumping one spot from 2020. The airport is the US' third-busiest airport in terms of passenger traffic and offers more flights to the Caribbean and Latin America than any other airport in the country. Miami is the top airport for cargo and hosts over 100 air carriers serving more than 140 destinations worldwide. The airport is a hub for American Airlines, FedEx Express, LAN Cargo, and UPS Airlines, and its a focus city for Frontier Airlines, Avianca, and LATAM.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 27th, 2021

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

Labor Shortages Hit FedEx Q1 Earnings: ETFs in Focus

FedEx lagged earnings estimates but beat on revenues. It cut its financial outlook for the fiscal year 2022 due to labor shortages. After the closing bell on Sep 22, transport bellwether FedEx FDX delivered mixed first-quarter fiscal 2022 results. The courier company lagged earnings estimates but beat on revenues. It cut its financial outlook for the fiscal year 2022 due to labor shortages.Earnings per share came in at $4.37, missing the Zacks Consensus Estimate of $4.96 and were below the year-ago earnings of $4.87. Revenues grew 14% year over year to $22 billion and edged past the estimated $21.8 billion. Increased labor costs took a toll on the company’s profitability. Staffing problems resulted in a $450 million year-over-year increase in costs during the quarter due to higher wage rates and overtime, increased spending on third-party transportation services and shipping hiccups.For fiscal 2022, the company lowered its adjusted earnings per share forecast to the range of  $19.75-$21.00 from $20.50-$21.50. The low end of the guidance is below the Zacks Consensus Estimate of $21.27 (see: all the Industrials ETFs here).Driven by fears of labor shortages and the resultant rise in cost, FDX shares fell as much as 4.6% in after-market hours. FedEx currently has a Zacks Rank #3 (Hold) and an impressive VGM Score of A.ETFs to WatchThis has put ETFs with a higher allocation to FedEx in the spotlight. Below we have highlighted some of the funds:iShares U.S. Transportation ETF IYTThe ETF tracks the S&P Transportation Select Industry FMC Capped Index, giving investors exposure to a small basket of 49 securities. Of these, FedEx occupies the seventh position with 4.4% of the assets. Within the transportation sector, railroads, and air freight and logistics take the top two spots with 32.1% and 28.7% share, respectively, while trucking (21.3%) and airlines (16.1%) round off the next two. The fund has accumulated $1.5 billion in AUM while it sees a good trading volume of around 204,000 shares a day. It charges 41 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: ETF Areas to Gain From the Upcoming Holiday Shopping Season).First Trust Nasdaq Transportation ETF FTXRThis fund offers exposure to the 29 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx holds 3.9% share in the basket. Trucking, railroads, airlines, automobiles, and transport services occupy the top spots in the basket. FTXR has amassed $1.1 billion in its asset base and charges 60 bps in annual fees. The average trading volume is moderate at 81,000 shares. The fund has a Zacks ETF Rank #2.SPDR S&P Transportation ETF XTN  This fund follows the S&P Transportation Select Industry Index and uses almost an equal-weight methodology for each security. Holding 49 stocks with an AUM of $485.3 million, FedEx accounts for 2.1% share in the basket. The product is heavily exposed to trucking, which represents more than one-third of the portfolio while airlines, and air freight & logistics make up 25.7% and 20% share, respectively. The fund charges 35 bps in fees per year from investors and trades in a volume of about 61,000 shares a day, on average. It has a Zacks ETF Rank #2 with a Hugh risk outlook (read: Buy These 7 Amazing ETFs Trading at Low P/E Ratios).Emles Home ETF LIVThis fund provides investors access to high quality companies that potentially stand to benefit from the structural shift toward home-based lifestyle by tracking the Emles Home Lifestyle Index. It holds 31 stocks in its basket with FedEx occupying 2% share. The product has accumulated $3.5 million in its asset since its inception last October and trades in an average daily volume of under 1,000 shares. It charges 49 bps in annual fees. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>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 FedEx Corporation (FDX): Free Stock Analysis Report iShares U.S. Transportation ETF (IYT): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports First Trust NASDAQ Transportation ETF (FTXR): ETF Research Reports Emles Home ETF (LIV): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021