Advertisements


FXI Makes Notable Cross Below Critical Moving Average

Dividend Channel.....»»

Category: topSource: redinewsMay 1st, 2021

BTFD Arrives: Futures Rebound, Europe Surges While Asia Slumps On Evergrande Fears

BTFD Arrives: Futures Rebound, Europe Surges While Asia Slumps On Evergrande Fears Even though China was closed for a second day, and even though the Evergrande drama is nowhere closer to a resolution with a bond default imminent and with Beijing mute on how it will resolve the potential "Lehman moment" even as rating agency S&P chimed in saying a default is likely and it does not expect China’s government “to provide any direct support” to the privately owned developer, overnight the BTFD crew emerged in full force, and ramped futures amid growing speculation that Beijing will rescue the troubled developer... Algos about to go on a rampage — zerohedge (@zerohedge) September 21, 2021 ... pushing spoos almost 100 points higher from their Monday lows, and European stock were solidly in the green - despite Asian stocks hitting a one-month low - as investors tried to shake off fears of contagion from a potential collapse of China’s Evergrande, although gains were capped by concerns the Federal Reserve could set out a timeline to taper its stimulus at its meeting tomorrow. The dollar dropped from a one-month high, Treasury yields rose and cryptos rebounded from yesterday's rout. To be sure, the "this is not a Lehman moment" crowed was out in full force, as indicated by this note from Mizuho analysts who wrote that “while street wisdom is that Evergrande is not a ‘Lehman risk’, it is by no stretch of the imagination any meaningful comfort. It could end up being China’s proverbial house of cards ... with cross-sector headwinds already felt in materials/commodities.” At 7:00 a.m. ET, S&P 500 e-minis were up 34.00 points, or 0.79% and Nasdaq 100 e-minis 110.25 points, or 0.73%, while futures tracking the Dow  jumped 0.97%, a day after the index tumbled 1.8% in its worst day since late-July,  suggesting a rebound in sentiment after concerns about contagion from China Evergrande Group’s upcoming default woes roiled markets Monday. Dip-buyers in the last hour of trading Monday helped the S&P 500 pare some losses, though the index still posted the biggest drop since May. The bounce also came after the S&P 500 dropped substantially below its 50-day moving average - which had served as a resilient floor for the index this year - on Monday, its first major breach in more than six months. Freeport-McMoRan mining stocks higher with a 3% jump, following a 3.2% plunge in the S&P mining index a day earlier as copper prices hit a one-month low. Interest rate-sensitive banking stocks also bounced, tracking a rise in Treasury yields. Here are some of the biggest U.S. movers today: U.S.-listed Chinese stocks start to recover from Monday’s slump in premarket trading as the global selloff moderates. Alibaba (BABA US), Baidu (BIDU US), Nio (NIO US), Tencent Music (TME US)and Bilibili (BILI US) are among the gainers Verrica Pharma (VRCA US) plunges 30% in premarket trading after failing to get FDA approval for VP-102 for the treatment of molluscum contagiosum ReWalk Robotics (RWLK US) shares jump 43% in U.S. premarket trading amid a spike in volume in the stock. Being discussed on StockTwits Aprea Therapeutics gains 21% in U.S. premarket trading after the company reported complete remission in a bladder cancer patient in Phase 1/2 clinical trial of eprenetapopt in combination with pembrolizumab Lennar (LEN US) shares fell 3% in Monday postmarket trading after the homebuilder forecast 4Q new orders below analysts’ consensus hurt by unprecedented supply chain challenges ConocoPhillips (COP US) ticks higher in U.S. premarket trading after it agreed to buy Shell’s  Permian Basin assets for $9.5 billion in cash, accelerating the consolidation of the largest U.S. oil patch SmileDirect (SDC US) slightly higher in premarket trading after it said on Monday that it plans to enter France with an initial location in Paris KAR Global (KAR US) shares fell 4.6% in post-market trading on Monday after the company withdrew is full-year financial outlook citing disruption caused by chip shortage Sportradar (SRAD US) shares jumped 4.5% in Monday postmarket trading, after the company said basketball legend Michael Jordan will serve as a special adviser to its board and also increase his investment in the sports betting and entertainment services provider, effective immediately Orbital Energy Group (OEG US) gained 6% postmarket Monday after a unit won a contract  to construct 1,910 miles of rural broadband network in Virginia. Terms were not disclosed “So much of this information is already known that we don’t think it will necessary set off a wave of problems,” John Bilton, head of global multi-asset strategy at JPMorgan Asset Management, said on Bloomberg TV. “I’m more concerned about knock-on sentiment at a time when investor sentiment is a bit fragile. But when we look at the fundamentals -- the general growth, and direction in the wider economy -- we still feel reasonably confident that the situation will right itself.” Aside from worries over Evergrande’s ability to make good on $300 billion of liabilities, investors are also positioning for the two-day Fed meeting starting Tuesday, where policy makers are expected to start laying the groundwork for paring stimulus.  Europe's Stoxx 600 index climbed more than 1%, rebounding from the biggest slump in two months, with energy companies leading the advance and all industry sectors in the green. Royal Dutch Shell rose after the company offered shareholders a payout from the sale of shale oil fields. Universal Music Group BV shares soared in their stock market debut after being spun off from Vivendi SE. European airlines other travel-related stocks rise for a second day following the U.S. decision to soon allow entry to most foreign air travelers as long as they’re fully vaccinated against Covid-19; British Airways parent IAG soars as much as 6.9%, extending Monday’s 11% jump. Here are some of the biggest European movers today: Stagecoach shares jump as much as 24% after the company confirmed it is in takeover talks with peer National Express. Shell climbs as much as 4.4% after selling its Permian Basin assets to ConocoPhillips for $9.5 billion. Bechtle gains as much as 4.3% after UBS initiated coverage at buy. Husqvarna tumbles as much as 9% after the company said it is suing Briggs & Stratton in the U.S. for failing to deliver sufficient lawn mower engines for the 2022 season. Kingfisher slides as much as 6.4% after the DIY retailer posted 1H results and forecast higher profits this fiscal year. The mood was decidedly more sour earlier in the session, when Asian stocks fell for a second day amid continued concerns over China’s property sector, with Japan leading regional declines as the market reopened after a holiday. The MSCI Asia Pacific Index was down 0.5%, headed for its lowest close since Aug. 30, with Alibaba and SoftBank the biggest drags. China Evergrande Group slid deeper in equity and credit markets Tuesday after S&P said the developer is on the brink of default. Markets in China, Taiwan and South Korea were closed for holidays. Worries over contagion risk from the Chinese developer’s debt problems and Beijing’s ongoing crackdowns, combined with concern over Federal Reserve tapering, sent global stocks tumbling Monday. The MSCI All-Country World Index fell 1.6%, the most since July 19. Japan’s stocks joined the selloff Tuesday as investor concerns grew over China’s real-estate sector as well as Federal Reserve tapering, with the Nikkei 225 sliding 2.2% - its biggest drop in three months, catching up with losses in global peers after a holiday - after a four-week rally boosted by expectations for favorable economic policies from a new government. Electronics makers were the biggest drag on the Topix, which declined 1.7%. SoftBank Group and Fast Retailing were the largest contributors to a 2.2% loss in the Nikkei 225. Japanese stocks with high China exposure including Toto and Nippon Paint also dropped. “The outsized reaction in global markets may be a function of having too many uncertainties bunched into this period,” Eugene Leow, a macro strategist at DBS Bank Ltd., wrote in a note. “It probably does not help that risk taking (especially in equities) has gone on for an extended period and may be vulnerable to a correction.” “The proportion of Japan’s exports to China is greater than those to the U.S. or Europe, making it sensitive to any slowdown worries in the Chinese economy,” said Hideyuki Ishiguro, a senior strategist at Nomura Asset Management in Tokyo. “The stock market has yet to fully price in the possibility of a bankruptcy by Evergrande Group.” The Nikkei 225 has been the best-performing major stock gauge in the world this month, up 6.2%, buoyed by expectations for favorable policies from a new government and an inflow of foreign cash. The Topix is up 5.3% so far in September. In FX, the Bloomberg Dollar Spot Index inched lower and the greenback fell versus most of its Group-of-10 peers as a selloff in global stocks over the past two sessions abated; the euro hovered while commodity currencies led by the Norwegian krone were the best performers amid an advance in crude oil prices. Sweden’s krona was little changed after the Riksbank steered clear of signaling any post-pandemic tightening, as it remains unconvinced that a recent surge in inflation will last. The pound bucked a three-day losing streak as global risk appetite revived, while investors look to Thursday’s Bank of England meeting for policy clues. The yen erased earlier gains as signs that risk appetite is stabilizing damped demand for haven assets. At the same time, losses were capped due to uncertainty over China’s handling of the Evergrande debt crisis. In rates, Treasuries were lower, although off worst levels of the day as U.S. stock futures recover around half of Monday’s losses while European equities trade with a strong bid tone. Yields are cheaper by up to 2.5bp across long-end of the curve, steepening 5s30s spread by 1.2bp; 10-year yields around 1.3226%, cheaper by 1.5bp on the day, lagging bunds and gilts by 1bp-2bp. The long-end of the curve lags ahead of $24b 20-year bond reopening. Treasury will auction $24b 20-year bonds in first reopening at 1pm ET; WI yield ~1.82% is below auction stops since January and ~3bp richer than last month’s new-issue result In commodities, crude futures rose, with the front month WTI up 1.5% near $71.50. Brent stalls near $75. Spot gold trades a narrow range near $1,765/oz. Base metals are mostly in the green with LME aluminum the best performer Looking at the day ahead now, and data releases include US housing starts and building permits for August, along with the UK public finances for September. From central banks, we’ll hear from ECB Vice President de Guindos. Otherwise, the General Debate will begin at the UN General Assembly, and the OECD publishes their Interim Economic Outlook. Market Snapshot S&P 500 futures up 1.0% to 4,392.75 STOXX Europe 600 up 1.1% to 459.10 MXAP down 0.5% to 200.25 MXAPJ up 0.2% to 640.31 Nikkei down 2.2% to 29,839.71 Topix down 1.7% to 2,064.55 Hang Seng Index up 0.5% to 24,221.54 Shanghai Composite up 0.2% to 3,613.97 Sensex up 0.4% to 58,751.30 Australia S&P/ASX 200 up 0.4% to 7,273.83 Kospi up 0.3% to 3,140.51 Brent Futures up 1.6% to $75.13/bbl Gold spot down 0.1% to $1,761.68 U.S. Dollar Index little changed at 93.19 German 10Y yield fell 5.0 bps to -0.304% Euro little changed at $1.1729 Top Overnight News from Bloomberg Lael Brainard is a leading candidate to be the Federal Reserve’s banking watchdog and is also being discussed for more prominent Biden administration appointments, including to replace Fed chairman Jerome Powell and, potentially, for Treasury secretary if Janet Yellen leaves Federal Reserve Chair Jerome Powell will this week face the challenge of convincing investors that plans to scale back asset purchases aren’t a runway to raising interest rates for the first time since 2018 ECB Vice President Luis de Guindos says there is “good news” with respect to the euro-area recovery after a strong development in the second and third quarter The ECB is likely to continue purchasing junk-rated Greek sovereign debt even after the pandemic crisis has passed, according to Governing Council member and Greek central bank chief Yannis Stournaras U.K. government borrowing was well below official forecasts in the first five months of the fiscal year, providing a fillip for Chancellor of the Exchequer Rishi Sunak as he prepares for a review of tax and spending next month U.K. Business Secretary Kwasi Kwarteng warned the next few days will be challenging as the energy crisis deepens, and meat producers struggle with a crunch in carbon dioxide supplies The U.K.’s green bond debut broke demand records for the nation’s debt as investors leaped on the long-anticipated sterling asset. The nation is offering a green bond maturing in 2033 via banks on Tuesday at 7.5 basis points over the June 2032 gilt. It has not given an exact size target for the sale, which has attracted a record of more than 90 billion pounds ($123 billion) in orders Germany cut planned debt sales in the fourth quarter by 4 billion euros ($4.7 billion), suggesting the surge in borrowing triggered by the coronavirus pandemic is receding Contagion from China Evergrande Group has started to engulf even safer debt in Asia, sparking the worst sustained selloff of the securities since April. Premiums on Asian investment-grade dollar bonds widened 2-3 basis points Tuesday, according to credit traders, after a jump of 3.4 basis points on Monday Swiss National Bank policy makers watching the effects of negative interest rates on the economy are worrying about the real-estate bubble that their policy is helping to foster Global central banks need to set out clear strategies for coping with inflation risks as the world economy experiences faster-than-expected cost increases amid an uneven recovery from the pandemic, the OECD said A quick look at global markets courtesy of Newsquawk Asian equities traded cautiously following the recent downbeat global risk appetite due to Evergrande contagion concerns which resulted in the worst day for Wall Street since May, with the region also contending with holiday-thinned conditions due to the ongoing closures in China, South Korea and Taiwan. ASX 200 (+0.2%) was indecisive with a rebound in the mining-related sectors counterbalanced by underperformance in utilities, financials and tech, while there were also reports that the Byron Bay area in New South Wales will be subject to a seven-day lockdown from this evening. Nikkei 225 (-1.8%) was heavily pressured and relinquished the 30k status as it played catch up to the contagion downturn on return from the extended weekend with recent detrimental currency inflows also contributing to the losses for exporters. Hang Seng (-0.3%) was choppy amid the continued absence of mainland participants with markets second-guessing whether Chinese authorities will intervene in the event of an Evergrande collapse, while shares in the world’s most indebted developer fluctuated and wiped out an early rebound, although affiliate Evergrande Property Services and other property names fared better after Sun Hung Kai disputed reports of China pressuring Hong Kong developers and with Guangzhou R&F Properties boosted by reports major shareholders pledged funds in the Co. which is also selling key assets to Country Garden. Finally, 10yr JGBs were higher amid the underperformance in Japanese stocks and with the Japan Securities Dealers Association recently noting that global funds purchased the most ultra-long Japanese bonds since 2014, although upside was limited amid softer demand at the enhanced liquidity auction for 2yr-20yr maturities and with the BoJ kickstarting its two-day policy meeting. Top Asian News Richest Banker Says Evergrande Is China’s ‘Lehman Moment’ Hong Kong Tycoons, Casino Giants Find Respite in Stock Rebound Taliban Add More Male Ministers, Say Will Include Women Later Asian Stocks Drop to Lowest Level This Month; Japan Leads Losses European equities (Stoxx 600 +1.1%) trade on a firmer footing attempting to recoup some of yesterday’s losses with not much in the way of incremental newsflow driving the upside. Despite the attempt to claw back some of the prior session’s lost ground, the Stoxx 600 is still lower by around 1.6% on the week. The Asia-Pac session was one characterised by caution and regional market closures with China remaining away from market. Focus remains on whether Evergrande will meet USD 83mln in interest payments due on Thursday and what actions Chinese authorities could take to limit the contagion from the company in the event of further troubles. Stateside, futures are also on a firmer footing with some slight outperformance in the RTY (+1.2%) vs. peers (ES +0.8%). Again, there is not much in the way of fresh positivity driving the upside and instead gains are likely more a by-product of dip-buying; attention for the US is set to become increasingly geared towards tomorrow’s FOMC policy announcement. Sectors in Europe are firmer across the board with outperformance in Oil & Gas names amid a recovery in the crude complex and gains in Shell (+4.4%) after news that the Co. is to sell its Permian Basin assets to ConocoPhillips (COP) for USD 9.5bln in cash. Other outperforming sectors include Tech, Insurance and Basic Resources. IAG (+4.1%) and Deutsche Lufthansa (+3.8%) both sit at the top of the Stoxx 600 as the Co.’s continue to enjoy the fallout from yesterday’s decision by the US to allow travel from vaccinated EU and UK passengers. Swatch (-0.7%) is lagging in the luxury space following a downgrade at RBC, whilst data showed Swiss watch exports were +11.5% Y/Y in August (prev. 29.1%). Finally, National Express (+7.7%) is reportedly considering a takeover of Stagecoach (+21.4%), which is valued at around GBP 370mln. Top European News U.K. Warns of Challenging Few Days as Energy Crisis Deepens Germany Trims Planned Debt Sales as Pandemic Impact Recedes U.K.’s Green Bond Debut Draws Record Demand of $123 Billion Goldman Plans $1.5 Billion Petershill Partners IPO in London In FX, all the signs are constructive for a classic turnaround Tuesday when it comes to Loonie fortunes as broad risk sentiment improves markedly, WTI consolidates within a firm range around Usd 71/brl compared to yesterday’s sub-Usd 70 low and incoming results from Canada’s general election indicate victory for the incumbent Liberal party that will secure a 3rd term for PM Trudeau. Hence, it’s better the devil you know as such and Usd/Cad retreated further from its stop-induced spike to just pips short of 1.2900 to probe 1.2750 at one stage before bouncing ahead of new house price data for August. Conversely, the Swedish Krona seems somewhat reluctant to get carried away with the much better market mood after the latest Riksbank policy meeting only acknowledged significantly stronger than expected inflation data in passing, and the repo rate path remained rooted to zero percent for the full forecast horizon as a consequence. However, Eur/Sek has slipped back to test 10.1600 bids/support following an initial upturn to almost 10.1800, irrespective of a rise in unemployment. NOK/AUD/NZD - No such qualms for the Norwegian Crown as Brent hovers near the top of a Usd 75.18-74.20/brl band and the Norges Bank is widely, if not universally tipped to become the first major Central Bank to shift into tightening mode on Thursday, with Eur/Nok hugging the base of a 10.1700-10.2430 range. Elsewhere, the Aussie and Kiwi look relieved rather than rejuvenated in their own right given dovish RBA minutes, a deterioration in Westpac’s NZ consumer sentiment and near reversal in credit card spending from 6.9% y/y in July to -6.3% last month. Instead, Aud/Usd and Nzd/Usd have rebounded amidst the recovery in risk appetite that has undermined their US rival to top 0.7380 and 0.7050 respectively at best. GBP/CHF/EUR/JPY/DXY - Sterling is latching on to the ongoing Dollar retracement and more supportive backdrop elsewhere to pare losses under 1.3700, while the Franc continues its revival to 0.9250 or so and almost 1.0850 against the Euro even though the SNB is bound to check its stride at the upcoming policy review, and the single currency is also forming a firmer base above 1.1700 vs the Buck. Indeed, the collective reprieve in all components of the Greenback basket, bar the Yen on diminished safe-haven demand, has pushed the index down to 93.116 from 93.277 at the earlier apex, and Monday’s elevated 93.455 perch, while Usd/Jpy is straddling 109.50 and flanked by decent option expiry interest either side. On that note, 1.4 bn resides at the 109.00 strike and 1.1 bn between 109.60-70, while there is 1.6 bn in Usd/Cad bang on 1.2800. EM - Some respite across the board in wake of yesterday’s mauling at the hands of risk-off positioning in favour of the Usd, while the Czk has also been underpinned by more hawkish CNB commentary as Holub echoes the Governor by advocating a 50 bp hike at the end of September and a further 25-50 bp in November. In commodities, WTI and Brent are firmer in the European morning post gains in excess of 1.0%, though the benchmarks are off highs after an early foray saw Brent Nov’21 eclipse USD 75.00/bbl, for instance. While there has been newsflow for the complex, mainly from various energy ministers, there hasn’t been much explicitly for crude to change the dial; thus, the benchmarks are seemingly moving in tandem with broader risk sentiment (see equities). In terms of the energy commentary, the Qatar minister said they are not thinking of re-joining OPEC+ while the UAE minister spoke on the gas situation. On this, reports in Russian press suggests that Russia might allow Rosneft to supply 10bcm of gas to Europe per year under an agency agreement with Gazprom “as an experiment”, developments to this will be closely eyed for any indication that it could serve to ease the current gas situation. Looking ahead, we have the weekly private inventory report which is expected to post a headline draw of 2.4mln and draws, albeit of a smaller magnitude, are expected for distillate and gasoline as well. Moving to metals, spot gold is marginally firmer while silver outperforms with base-metals picking up across the board from the poor performance seen yesterday that, for instance, saw LME copper below the USD 9k mark. Note, the action is more of a steadying from yesterday’s downside performance than any notable upside, with the likes of copper well within Monday’s parameters. US Event Calendar 8:30am: Aug. Building Permits MoM, est. -1.8%, prior 2.6%, revised 2.3% 8:30am: Aug. Housing Starts MoM, est. 1.0%, prior -7.0% 8:30am: Aug. Building Permits, est. 1.6m, prior 1.64m, revised 1.63m 8:30am: Aug. Housing Starts, est. 1.55m, prior 1.53m 8:30am: 2Q Current Account Balance, est. -$190.8b, prior -$195.7b DB's Jim Reid concludes the overnight wrap Global markets slumped across the board yesterday in what was one of the worst days of the year as an array of concerns about the outlook gathered pace. The crisis at Evergrande and in the Chinese real estate sector was the catalyst most people were talking about, but truth be told, the market rout we’re seeing is reflecting a wider set of risks than just Chinese property, and comes after increasing questions have been asked about whether current valuations could still be justified, with talk of a potential correction picking up. Remember that 68% of respondents to my survey last week (link here) thought they’d be at least a 5% correction in equity markets before year end. So this has been front and centre of people’s mind even if the catalyst hasn’t been clear. We’ve all known about Evergrande’s woes and how big it was for a while but it wasn’t until Friday’s story of the Chinese regulatory crackdown extending into property that crystallised the story into having wider implications. As I noted in my chart of the day yesterday link here Chinese USD HY had been widening aggressively over the last couple of months but IG has been pretty rock solid. There were still no domestic signs of contagion by close of business Friday. However as it stands, there will likely be by the reopening post holidays tomorrow which reflects how quickly the story has evolved even without much new news. Before we get to the latest on this, note that we’ve still got a bumper couple of weeks on the calendar to get through, including the Fed decision tomorrow, which comes just as a potential government shutdown and debt ceiling fight are coming into view, alongside big debates on how much spending the Democrats will actually manage to pass. There has been some respite overnight with S&P 500 futures +0.58% higher and 10y UST yields up +1.5bps to 1.327%. Crude oil prices are also up c. 1%. On Evergrande, S&P Global Ratings has said that the company is on the brink of default and that it’s failure is unlikely to result in a scenario where China will be compelled to step in. The report added that they see China stepping in only if “there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy.” The Hang Seng (-0.32%) is lower but the Hang Seng Properties index is up (+1.59%) and bouncing off the 5 plus year lows it hit yesterday. Elsewhere the ASX (+0.30%) and India’s Nifty (+0.35%) have also advanced. Chinese and South Korean markets are closed for a holiday but the Nikkei has reopened and is -1.80% and catching down to yesterday’s global move. Looking at yesterday’s moves in more depth, the gathering storm clouds saw the S&P 500 shed -1.70% in its worst day since May 12, with cyclical industries leading the declines and with just 10% of S&P 500 index members gaining. There was a late rally at the end of the US trading session that saw equity indices bounce off their lows, with the S&P 500 (-2.87%) and NASDAQ (-3.42%) both looking like they were going to register their worst days since October 2020 and late-February 2021 respectively. However, yesterday was still the 5th worst day for the S&P 500 in 2021. Reflecting the risk-off tone, small caps suffered in particular with the Russell 2000 falling -2.44%, whilst tech stocks were another underperformer as the NASDAQ lost -2.19% and the FANG+ index of 10 megacap tech firms saw an even bigger -3.16% decline. For Europe it was much the same story, with the STOXX 600 (-1.67%) and other bourses including the DAX (-2.31%) seeing significant losses amidst the cyclical underperformance. It was the STOXX 600’s worst performance since mid-July and the 6th worst day of the year overall. Unsurprisingly, there was also a significant spike in volatility, with the VIX index climbing +4.9pts to 25.7 – its highest closing level since mid-May – after trading above 28.0pts midday. In line with the broader risk-off move, especially sovereign bonds rallied strongly as investors downgraded their assessment of the economic outlook and moved to price out the chances of near-term rate hikes. By the close of trade, yields on 10yr Treasuries had fallen -5.1bps to 1.311%, with lower inflation breakevens (-4.1bps) leading the bulk of the declines. Meanwhile in Europe, yields on 10yr bunds (-4.0bps), OATs (-2.6bps) and BTPs (-0.9bps) similarly fell back, although there was a widening in spreads between core and periphery as investors turned more cautious. Elsewhere, commodities took a hit as concerns grew about the economic outlook, with Bloomberg’s Commodity Spot Index (-1.53%) losing ground for a third consecutive session. That said, European natural gas prices (+15.69%) were the massive exception once again, with the latest surge taking them above the peak from last Wednesday, and thus bringing the price gains since the start of August to +84.80%. Here in the UK, Business Secretary Kwarteng said that he didn’t expect an emergency regarding the energy supply, but also said that the government wouldn’t bail out failed companies. Meanwhile, EU transport and energy ministers are set to meet from tomorrow for an informal meeting, at which the massive spike in prices are likely to be discussed. Overnight, we have the first projections of the Canadian federal election with CBC News projecting that the Liberals will win enough seats to form a government for the third time albeit likely a minority government. With the counting still underway, Liberals are currently projected to win 156 seats while Conservatives are projected to win 120 seats. Both the parties are currently projected to win a seat less than last time. The Canadian dollar is up +0.44% overnight as the results remove some election uncertainty. Turning to the pandemic, the main news yesterday was that the US is set to relax its travel rules for foreign arrivals. President Biden announced the move yesterday, mandating that all adult visitors show proof of vaccination before entering the country. Airline stocks outperformed strongly in response, with the S&P 500 airlines (+1.55%) being one of the few industry groups that actually advanced yesterday. Otherwise, we heard from Pfizer and BioNTech that their vaccine trials on 5-11 year olds had successfully produced an antibody response among that age group. The dose was just a third of that used in those aged 12 and above, and they said they planned to share the data with regulators “as soon as possible”. Furthermore, they said that trials for the younger cohorts (2-5 and 6m-2) are expected as soon as Q4. In Germany, there are just 5 days left until the election now, and the last Insa poll before the vote showed a slight tightening in the race, with the centre-left SPD down a point to 25%, whilst the CDU/CSU bloc were up 1.5 points to 22%. Noticeably, that would also put the race back within the +/- 2.5% margin of error. The Greens were unchanged in third place on 15%. Staying with politics and shifting back to the US, there was news last night that Congressional Democratic leaders are looking to tie the suspension of the US debt ceiling vote to the spending bill that is due by the end of this month. If the spending bill is not enacted it would trigger a government shutdown, and if the debt ceiling is not raised it would cause defaults on federal payments as soon as October. Senate Majority Leader Schumer said the House will pass a spending bill that will fund the government through December 3rd and that the “legislation to avoid a government shutdown will also include a suspension of the debt limit through December 2022.” Republicans may balk at the second measure, given that it would take the issue off the table until after the 2022 midterm elections in November of that year. There wasn’t a great deal of data out yesterday, though German producer price inflation rose to +12.0% in August (vs. +11.1% expected), marking the fastest pace since December 1974. Separately in the US, the NAHB’s housing market index unexpectedly rose to 76 in September (vs. 75 expected), the first monthly increase since April. To the day ahead now, and data releases include US housing starts and building permits for August, along with the UK public finances for September. From central banks, we’ll hear from ECB Vice President de Guindos. Otherwise, the General Debate will begin at the UN General Assembly, and the OECD will be publishing their Interim Economic Outlook. Tyler Durden Tue, 09/21/2021 - 07:45.....»»

Category: blogSource: zerohedgeSep 21st, 2021

Futures Rise On Taper, Evergrande Optimism

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

Category: blogSource: zerohedge1 hr. 53 min. ago

Retailers jostle over cut-price space as Brooklyn market looks for solid ground

The Real Estate Board of New York (REBNY), the City’s leading real estate trade association, today released its Summer 2021 Brooklyn Retail Report which highlights steady leasing in the Brooklyn retail market as tenants capitalize on market opportunities in select trade areas. According to the report, demand is being driven primarily by... The post Retailers jostle over cut-price space as Brooklyn market looks for solid ground appeared first on Real Estate Weekly. The Real Estate Board of New York (REBNY), the City’s leading real estate trade association, today released its Summer 2021 Brooklyn Retail Report which highlights steady leasing in the Brooklyn retail market as tenants capitalize on market opportunities in select trade areas. According to the report, demand is being driven primarily by retailers taking fully built spaces, while recently increased activity among national retailers and e-commerce firms supplemented activity in select corridors. Despite the sustained leasing during the last six months, rents continue to slide lower in nearly all corridors. REBNY reported that asking retail rents throughout Brooklyn declined in 11 of the 17 reported corridors, with rents continuing to adjust amid New York City’s ongoing recovery from the pandemic. Average asking price per square foot (PPSF) rents throughout Brooklyn’s retail corridors fell by 10% or more in 10 retail corridors. DUMBO was the retail corridor with the largest year-over-year decline, experiencing a 23% decline in average asking rents in that time period. Corridors with a strong residential base, such as Cobble Hill and Park Slope, have fared better in the current market. A Park Slope corridor, for example, experienced a 10% increase in average asking rent year-over-year. “We continue to see the market adjust, creating new opportunities for both tenants and owners, as well as posing some challenges as we work to rebuild the City’s economy,” said REBNY President James Whelan. “It’s critical the public sector stay laser focused on the City’s recovery by adopting smart policies that drive strong economic development and increased business activity.” Top brokers in Brooklyn noted the marked intensification in tenant lease commitments throughout the spring and summer. Retailers continued to focus on second-generation space. While this was a key driver of leasing, national retailers and some e-commerce firms have also started to jump into the market in a few corridors. During 2020, an unprecedented amount of second-generation space was added along Brooklyn’s prime retail corridors. In 2021, the take-up of this fully built space was the key driver of steady leasing momentum. Realizing an opportunity to capture significant savings on build out-costs, particularly in locations that rarely come available, retailers started to commit to space early this year. This momentum continued throughout the summer. Recent openings include Aldama (91 S 6th St.); Harlem Shake (119 5th Ave); Sup Crab (664 Manhattan Ave); Ninety Nine Franklin (99 Franklin St) Mitzi Flexer “Brooklyn is comprised of many residential neighborhoods and is a melting pot. Since the pandemic, we have seen a proactive movement of leasing in these areas by national brands, who, preceding the pandemic, never looked at Brooklyn as a possibility for their flagship NYC brick and mortar,” said Mitzi Flexer, Senior Director of Brokerage at Cushman and Wakefield. “Though retail prices hit a bottom very early in the year, the softening of prices over the past few years has allowed a lot of local operators to take prime high street space again, as landlords accept softer terms without rigid credit standards,” said Peter Schubert, Managing Director, Commercial Leasing at TerraCRG. “Brooklyn-based retailers have really led the market back, reversing the trend of the last 10 years.” While the findings suggest a continued recovery in Brooklyn’s retail markets, brokers noted that the rebound is still in its early stages. The surging Delta variant of COVID-19, coupled with uncertainty over City and State government changes, could stem the progress. The continued decline in asking rents makes it clear that the market recovery is just starting – retailers may curb their appetite for space if external conditions deteriorate. REBNY’S Biannual Brooklyn Retail Report is a joint effort by the REBNY Brooklyn Retail Advisory Group and the REBNY team. The report provides a snapshot of major retail corridors in the borough based on available ground-floor retail asking rent information. All data is sourced from the respective firms of each REBNY Brooklyn Retail Advisory Group member. The report includes the average price per square foot, median price per square, the lowest price per square foot and highest price per square foot for each of the 17 retail corridors tracked. Download the complete Summer 2021 Brooklyn Retail Report here. The post Retailers jostle over cut-price space as Brooklyn market looks for solid ground appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweekly2 hr. 20 min. ago

Fossil Fuel Companies Say Hydrogen Made From Natural Gas Is a Climate Solution. But the Tech May Not Be Very Green

But the tech may not actually be very green As a committee of climate scientists and environmental officials deliberated over how to drastically cut New York State’s carbon footprint last summer, natural gas industry representatives were putting forward a counterintuitive pitch: hydrogen, made from fossil fuels. The concept was simple, explained natural-gas proponents serving on the state’s climate-action council. Industrial hydrogen suppliers had long used a process called steam methane reforming (SMR) to produce what the industry calls “gray” hydrogen from natural gas—a system that accounts for 95% of all current hydrogen production, but releases large amounts of carbon emissions. Emissions-free “green” hydrogen can be produced using water and renewable electricity, but that tends to be more expensive than making gray hydrogen. The solution, gas-industry representatives said, was to pursue a kind of carbon compromise. Instead of making expensive green hydrogen, industrial gray hydrogen facilities could be outfitted with carbon capture systems that buried their emissions underground. Voila: A new color in the hydrogen rainbow—safe, clean, abundant “blue” hydrogen to power the economy of the future. [time-brightcove not-tgx=”true”] Bob Howarth, a Cornell University climate scientist serving on the N.Y. State carbon-drawdown committee, decided to look into the gas industry’s arguments. “I’m not surprised that people in the natural gas industry are trying to suggest ways that they keep their industry alive,” he says. “But I was skeptical.” Together with Mark Jacobson, an atmospheric scientist at Stanford University, Howarth set out to document the full emissions picture arising from blue hydrogen production. The results, published Aug. 12 in Energy Science and Engineering, were striking. According to Howarth and Jacobson’s calculations, capturing SMR carbon emissions uses so much energy and results in so much extra leakage of methane—another greenhouse gas that has many times more warming potential than carbon dioxide—that any possible CO2 emissions benefit is nearly canceled out, leaving in place a process that produces about 90% of the emissions of making grey hydrogen. Blue hydrogen is so dirty, in fact, that it’s worse for the climate than burning natural gas for heat in the first place, the researchers found. But in the meantime, blue hydrogen’s proponents were hard at work. Backed up by industry-funded reports, lobbyists had been pushing blue hydrogen to governments around the world, and the governments were listening. The E.U. released a strategy last summer that proposed expanding blue hydrogen production over the next decade. In the U.K., bureaucrats were crafting a national “hydrogen strategy,” released last month, that gives ample support to blue hydrogen development. In the U.S., legislators are currently negotiating a trillion-dollar infrastructure package that, in its current form, would allocate $8 billion to develop so-called “clean” hydrogen, much of it using fossil fuels. To some extent, Howarth’s work had come too late. “Industry marketing is way out ahead of scientific research and policy sometimes,” he says. That’s nothing new. From claims that natural gas could be a “bridge” to lower emissions, to promises of decarbonization through “clean coal,” pie-in-the-sky propositions from the fossil-fuel industry have been a feature of climate policy discussions for years. Now, with worldwide political will finally coalescing around an urgent imperative to draw down carbon emissions, natural-gas producers like Shell and BP and distributors like Engie have allied themselves with companies like Air Liquide that have long produced SMR hydrogen to promote blue hydrogen—which looks clean from certain angles, but from others, appears as CO2-intensive as other fossil fuels—as the future of the energy industry. Industry groups say blue hydrogen will be critical to meeting the world’s climate goals, and can be part of a broad strategy to reduce the world’s greenhouse gas emissions by 2050. But some scientists and experts say the hydrogen industry’s real purpose is to preserve the value of its natural-gas resources and distribution systems under the cover of climate stewardship, locking the world into a technology that will release yet more methane and CO2 emissions for decades to come. For those of us who have gotten used to seeing hydrogen in the context of sleek concept cars, it can be surprising to learn that large-scale hydrogen production has been around for more than a century. Hydrogen became particularly useful after the early 20th century invention of the Haber process, which combines the gas with nitrogen in the atmosphere to produce ammonia, a compound valuable for its use in fertilizer and explosives. U.S. fossil-fuel companies began operating SMR plants to make hydrogen from natural gas in the 1930s, and the industry grew over the following decades. Oil refineries also use hydrogen to remove sulfur from crude oil, with many refineries currently producing their own hydrogen on-site from natural gas. About 6% of the world’s natural gas (and 2% of coal, through another carbon-intensive process) is currently used to produce hydrogen, emitting 830 million metric tons of carbon dioxide per year, according to the International Energy Agency. In all, hydrogen production accounts for about 2% of all the world’s carbon emissions. But when used as a fuel, hydrogen has an environmental advantage over fossil fuels: burning hydrogen releases nothing but water vapor. Amid rising public concern over climate change in the early 2000s, hydrogen underwent a PR renaissance. No longer was it just a dirty industrial feedstock—now it was the fuel of the future. Though most hydrogen at the time was produced using SMR, experts knew large amounts of it could, in theory, be extracted from water using solar or wind power. And though the sun doesn’t always shine and the wind doesn’t always blow, the hydrogen fuel made using those resources could be transported anywhere and used any time, essentially acting like a portable battery to store renewable energy. “Hydrogen fuel cells represent one of the most encouraging, innovative technologies of our era,” said U.S. President George W. Bush in 2003 while announcing a $1.2 billion federal initiative to launch a fledgling hydrogen sector. Promises of a “hydrogen economy” that would see fossil fuels phased out in favor of the lightest element to power everything from stove-top burners to trucks abounded. But hydrogen’s golden hour, particularly in the automotive sector, was to be short lived. In 2009, the new Obama Administration energy secretary and Nobel Prize-winning physicist Steven Chu publicly lambasted the idea of a fleet of hydrogen-powered cars, saying the technology wasn’t progressing fast enough, and tried to cut government research funding. Congress restored those funds, though the Energy Department succeeded in making deep hydrogen cuts two years later. The next decade saw hydrogen’s prospects further decline. While hydrogen-powered vehicles from the likes of Toyota were beset by cost problems and difficulties building out fueling infrastructure, the battery-electric sector took off, with industry newcomers like Tesla selling half a million cars a year by the end of the next decade. Seeing which way the wind was blowing, other automakers like GM and Nissan quietly backed off hydrogen passenger car projects (though GM has continued to invest heavily in fuel cells for larger commercial vehicles). But hydrogen stalwarts weren’t going down without a fight. In the late 2010s, fossil-fuel companies, automakers, natural-gas grid operators and legacy SMR hydrogen companies, among others, began promoting a new narrative: Hydrogen, they said, was essential to a green-energy transition. “Green” hydrogen made from renewable energy would supply some of the power demand. The “blue” variety, made from natural gas, would make up the rest, with carbon-capture-and-storage technologies mitigating its emissions. That blue hydrogen narrative is largely descended from previous industry hype cycles around so-called “clean coal,” says Jan Rosenow, European Programme Director for the Regulatory Assistance Project, a nonprofit that helps governments implement green-energy goals. Those projects, launched in the 2010s, were largely based on the notion that coal-fired power plants would use carbon-capture equipment to bury their emissions underground—but they ultimately foundered, resulting in costly, federally-funded failures within a few years. After that, Rosenow says, industry switched tack to promoting natural gas as a low-carbon transition fuel, a push that drew environmental outcry over methane leaks along the gas-supply chain. Fossil-fuel companies, Rosenow says, needed a new option. “That’s where the whole discussion around hydrogen comes from,” he says. As China began to cash in on a green-tech manufacturing boom in the late-2010s, European governments eager to dominate a nascent hydrogen sector proved a receptive audience for industry pitches. In 2020, the non-profit watchdog group Corporate Europe Observatory released a report pointing out what it said were worrying signs of industry influence in the E.U. hydrogen strategy. “The bodies being created by the E.U. like the European Clean Hydrogen Alliance are completely industry dominated and industry driven,” says Pascoe Sabido, a researcher at Corporate Europe Observatory. “I don’t know if I’d even call it lobbying—this is the E.U. putting industry in the driving seat.” He frames the hydrogen push as an attempt by fossil fuel companies to shift a coming green energy transition to suit their own interests, pointing to their involvement in hydrogen industry groups like the Hydrogen Council and Hydrogen Europe. The secretariats of both organizations were previously managed by FTI Consulting, a consulting firm that garnered controversy last year over its role in setting up groups like Texans for Natural Gas and the Main Street Investors Coalition as part of a fossil fuel industry influence campaign. Then Bob Howarth and Mark Jacobson came out with their report last month, further sandbagging the blue hydrogen airship. Industry groups representing SMR producers, fossil-fuel companies and other hydrogen players contest their findings, pointing to their own reports, which argue that the technology can produce energy at an emissions cost 80% to 90% lower than pure fossil fuels. Daryl Wilson, executive director of the Hydrogen Council, an industry consortium, argues that Howarth’s blue hydrogen report would have come up with lower methane leakage rates if it had looked only at wells that were following industry best practices. But Howarth says there is little evidence that many in the industry actually operate that way. (Satellite imaging in recent years has found alarming gas leakage from wells and pipelines around the world.) In their calculations, he and Jacobson used the average methane leakage rate across the U.S. natural gas industry, a number they say better reflects real-world conditions. Right now, there are only a handful of blue-hydrogen facilities around the world, but governments are preparing subsidies and investments that, if enacted, will lead to the construction of many more. Chris Jackson, a green-hydrogen entrepreneur who resigned as chair of the U.K. Hydrogen and Fuel Cell Association earlier this month over the group’s inclusion of blue-hydrogen proponents, worries that fossil-fuel companies have once again hijacked the green-energy conversation. “Is it really appropriate and right that limited government resources from the public, which are meant to be supporting genuine net-zero technologies, should instead be spent on essentially allowing oil and gas companies to continue to operate the way they do today?,” Jackson says. Plans for new blue-hydrogen facilities, he says, don’t make sense from either an environmental or economic perspective. “You’re putting in infrastructure that’s going to take you five years to build and going to be there for 20 years. Everyone should be asking themselves: ‘if this is an asset…in the middle of 2040, [is it] still going to make sense to be running?’ And if not, you have to ask the question right now: ‘why are you building it?'” Even some with optimistic views of blue hydrogen don’t see why the public should support new facilities. Dolf Gielen, director of the International Renewable Energy Agency’s Innovation and Technology Centre in Bonn, Germany, generally supports blue hydrogen, but disagrees on the question of government assistance. “If blue hydrogen means you add some [carbon-capture equipment] to an existing [methane] reformer facility, why not?” says Gielen. “It’s a different question whether governments should subsidize new blue hydrogen.” Others say it makes little sense to invest limited government funds in a technology that only promises to reduce carbon emissions, rather than eliminate them completely. “We’re talking about 100% reductions in emissions to get to net zero,” says Rosenow, of the Regulatory Assistance Project. “In that context, there isn’t any space for just an 80% reduction. And that’s what blue hydrogen would probably deliver.” In the massive, unthinkably complex task of replacing every boiler, automobile, locomotive, cargo ship, and airplane with a carbon-free alternative—indeed, of tearing out just about every piece of machinery installed over the past hundred years—planners, corporations, governments and citizens generally have two options for what sort of system should take their place: hydrogen or electric. Hydrogen has a high-energy density, which means it would theoretically be lighter, making it good for airplanes, long-haul trucks, and for creating especially high temperatures, like those needed to produce essential materials like steel. But because you lose a lot of energy converting electricity into green hydrogen, and because it requires new infrastructure, electricity is better for smaller scale uses like heating buildings and powering cars. But some industry players are still trying to make hydrogen happen for all sorts of energy uses. Toyota, for instance, has continued what some green energy analysts consider to be a quixotic quest to popularize hydrogen cars, even going so far as to lobby against fuel efficiency rules and gasoline car phase-out requirements around the world that would benefit its battery-electric rivals. European gas companies have sought to show the world that homes can be heated with hydrogen, while industry consortiums push a vision of continent-wide hydrogen distribution networks both to supply gas for industry, and to replace natural-gas home-heating systems. Wilson says such initiatives have a place in an overall decarbonization strategy, and that they could be supplied by both blue and green hydrogen. “The optimized answer for transport and heating will vary region to region,” he says. “There is no ‘one size fits all’ answer here.” Of course, it’s hard to know for sure; a clear idea about the benefits of blue hydrogen would require spending a few decades and many billions of dollars building the infrastructure necessary to test it. But if blue hydrogen doesn’t pan out, we might be wishing we could go back in time and think a bit harder about investing in that technology now. As for the vast new hydrogen economy it’s intended to supply, many experts say hydrogen-fuel-cell cars are a dead end, with insurmountable cost barriers compared to battery cars, and opponents have characterized hydrogen-based home-heating plans as a gambit intended to extend the life of the gas industry through a vast expenditure of public resources. “The science demands that we keep fossil fuels in the ground,” says Sabido, of the Corporate Europe Observatory. “If we started from that point, [fossil-fuel companies] wouldn’t have a business model. So they’re doing whatever they can to ensure…that the assets they currently have on their books still have value.”.....»»

Category: topSource: timeSep 22nd, 2021

Protagonist Therapeutics (PTGX) Moves 18.2% Higher: Will This Strength Last?

Protagonist Therapeutics (PTGX) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term. Protagonist Therapeutics (PTGX) shares rallied 18.2% in the last trading session to close at $15.31. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 73.9% loss over the past four weeks.Shares of the company are recovering after they declined significantly in the past couple of days after the FDA placed a clinical hold on the clinical studies for Protagonist's investigational product candidate, rusfertide.This biopharmaceutical company is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of -219.1%. Revenues are expected to be $3.43 million, down 73.8% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Protagonist Therapeutics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PTGX going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> 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 Protagonist Therapeutics, Inc. (PTGX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

Bausch (BHC) Surges 8%: Is This an Indication of Further Gains?

Bausch (BHC) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term. Bausch Health BHC shares rallied 8% in the last trading session to close at $28.21. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.5% loss over the past four weeks.Investors are optimistic on the company’s prospects as it looks to separate some of its businesses which should improve strategic focus and enhance financial transparency.This drugmaker is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of -18.3%. Revenues are expected to be $2.16 billion, up 1.2% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For Bausch, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BHC going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> 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 Bausch Health Cos Inc. (BHC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

Bitcoin Mining Produces 30,700 Tons Of Waste Every Year

According to estimates by researchers Alex de Vries and Christian Stoll, bitcoin mining produces almost 30,700 tons of waste in electronic waste every year. As cryptocurrencies become more common, they are likely to grow into a bigger environmental problem. Q2 2021 hedge fund letters, conferences and more Bitcoin Mining, An Environmental Issue The BBC reports […] According to estimates by researchers Alex de Vries and Christian Stoll, bitcoin mining produces almost 30,700 tons of waste in electronic waste every year. As cryptocurrencies become more common, they are likely to grow into a bigger environmental problem. .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more Bitcoin Mining, An Environmental Issue The BBC reports that, according to the researchers’ estimates, the 30,700 tons average 272g (9.5oz) per transaction, while an iPhone 13 weighs 173g (6.1oz). This is because bitcoin mining utilizes a large amount of energy. “Attention has been focused on the electricity this consumes –currently more than the Philippines– and the greenhouse gas pollution caused as a result.” Amid the calculations, the computers that miners use for bitcoin mining have an average lifespan of 1.29 years, which results in thousands of e-waste tons annually. “The amount of e-waste produced is comparable to the ‘small IT and telecommunication equipment’ waste of a country like the Netherlands researchers said  –a category that includes mobile phones, personal computers, printers, and telephones.” According to Quartz, any downtime in the bitcoin mining system makes the next coin harder to earn, “and the only way to get an edge over competitors is to run more computers.” So, when the price of bitcoin increases, so does the mining activity, the energy usage, and the carbon footprint. Bitcoin Mining Efficiency In the quest for using increasingly efficient processors that consume less, the bitcoin industry has come across highly specialized chips that go by the name of “Application Specific Integrated Circuit” or ASIC. However, according to the researchers, once they become obsolete, these chips cannot be reused since “they cannot be repurposed for another task or even another type of cryptocurrency mining algorithm." These findings are seen against some critical data, which states that as little as 17% of all electronic waste is recycled, partly due to a lack of laws that define what to do with the products that complete their life cycle. Further, electronic devices are becoming increasingly expensive due to the global chip shortage, as industries like automotive and consumer goods have had to reduce their production output and are struggling to keep up with the demand. The experts told the BBC that “The rapid passage of millions of devices used for cryptocurrency mining may disrupt the global supply chain for other electronic devices.” To lessen the environmental effect of bitcoin mining, they believe it is necessary to switch to another mining system that utilizes less hardware. Updated on Sep 22, 2021, 9:17 am (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkSep 22nd, 2021

Molecular Templates Inc. (MTEM) Moves 11.8% Higher: Will This Strength Last?

Molecular Templates Inc. (MTEM) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term. Molecular Templates Inc. MTEM shares rallied 11.8% in the last trading session to close at $6.54. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12% loss over the past four weeks.Molecular Templates continues to progress with its proprietary engineered toxin bodies (ETBs) candidates, TAK-169 and MT-6402, for the treatment of oncology indications. Investors expect the company to provide updates on the progress of these candidate at the Oppenheimer Fall Healthcare Life Sciences & MedTech Summit. Its share price is likely to have been driven by the anticipated positive updates. This company is expected to post quarterly loss of $0.33 per share in its upcoming report, which represents a year-over-year change of +29.8%. Revenues are expected to be $15.69 million, up 265% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Molecular Templates Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MTEM going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> 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 Molecular Templates Inc. (MTEM): Get Free Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

AUKUS Expedites The Coming EU Army & NATO"s Irrelevance

AUKUS Expedites The Coming EU Army & NATO's Irrelevance Authored by Joaquin Flores via The Strategic Culture Foundation, While AUKUS formally exists to counter China, it does so on the basis of shared history and spheres of influence. That means that the logic of containing China within such a framework also contains AUKUS. The surprise announcement of the new AUKUS alliance has predictably provoked an outcry from the European side of NATO, in particular France whose $90B plans with Australia were nixed without forewarning or mutual agreement. The entire fiasco only pushed the realization of a European continental army further along its path, a path that is all but inevitable and can only be either slowed or hurried by world events and political pressures. As we wrote towards the end of August in ‘NATO’s Obsolescence’, the NATO alliance is coming undone and what we are seeing internationally is the rise of multipolarity. Distinct from the yearnings of idealists, multipolarity does not necessitate, (nor does it exclude), that the rising global blocs operate in some symphonic harmony towards global peace. But there is a kernel of truth: because it implies a change away from often violent attempts to build a one-world system based on the wildest fantasies of the Western banking establishment (popularly referred to as the ‘New World Order’), it creates an opportunity for harmony, as multipolarity rests upon spheres of influence and mutual recognition of sovereign hegemony. AUKUS represents the failure of the Trans-Atlantic order rising after WWII (and emboldened by the collapse of the USSR and the Warsaw Pact) to transform into this ‘New World Order’ in the sense of a unipolar American century. But the solidifying of the U.S., UK, and Australia into something like AUKUS is also an entirely coherent development of the Five Eyes (UKUSA/FVEY) into something more. East Room of the White House, September 15, 2021, in Washington, D.C. President Biden delivered his remarks to present “AUKUS,”.WIN MCNAMEE/GETTY IMAGES It further underscores how much Biden’s foreign policy sits in line with Trump’s. AUKUS tends to confirm that for reasons still not entirely known (but which engender fantastical theories), Trump’s foreign policy on EU, China, and Five Eyes carries on into the Biden administration. Not everyone is on board. The intelligence relationship already existing between A5 countries known as the Five Eyes has been challenged by the push to be decisive on China where previously it was clearer on the USSR – something where regarding China, New Zealand and Canada have decided to take a more nuanced and balanced approach. In short, we see Obama allies Trudeau and Ardern push-back against the Biden administration’s move to forge AUKUS. Ardern went so far as to say that Australian nuclear subs per the AUKUS alliance, will not be allowed in New Zealand’s waters. Recall that Chinese naval vessels have been allowed to dock in New Zealand’s waters as recently as 2019. As far as Trudeau appears to be positioned, Canada’s Global News reported, “Brett Bruen, a consultant and former U.S. diplomat, told The Canadian Press that Canada may want to keep its distance from the pact to avoid aggravating existing tensions with China.” The ugly economic details of AUKUS have left France and NATO countries with the realization that the U.S. has sent a much larger signal than that particularly problematic $90B detail would indicate. The U.S. under Trump had been shifting its strategic emphasis away from realistically deflecting a Russian military intervention into Western Europe as NATO existed originally to do. Rhetoric and a few additionally planned exercises aside, this has not changed under the Biden administration. Trump’s efforts to push forward on burden shifting from the U.S. to NATO members in Europe in the form of a 2% of GDP commitment on military spending is not one that Biden will roll back, despite his administration’s formal commitment to rebuild U.S.-EU strategic commitments apparently undermined by the 45th presidential administration. These developments, and more, have left France and Germany certain that an EU Army is a realistic security solution in the face of an unreliable U.S. The Coming EU Army When the UK left the EU on January 31st 2020 it removed a major obstacle to the building a continental army for Europe. Revealingly, the political forces campaigning on behalf of Brexit argued that the future of the EU would work against the special relationship that the UK has with the U.S. But why should this be the case, when the EU and U.S. are staunch allies, and since NATO is the child of this alliance? The answer to that question subverts expectations, and this is what makes it so worthy of our attention. The inclusion of the UK in the EU has always been a source and reflection of conflict between the UK and the continent. The persistence of the pound sterling and its precise position to the later development of the Euro, probably made Brexit a rather positive outcome for Europeanists among the long-term EU strategists at the very top, despite the entire Brussels bureaucracy and the EU media structure batting for Atlanticism through public declarations and electoral interference. After all, like any organization of scale, there are competing visions and competing commitments. The best way to change the alignment of these is to change the facts on the ground and the departure of the UK from the EU was a monumental one So many things then become possible with the UK out of the EU, like an EU Army. © Flickr / Rock Cohen Yet if NATO represents the keystone for security in Europe, then what need is there for an EU Army? The answer to this one is not pretty, because it directly confronts the definition of ‘security’, and more decidedly poses the question: Whose security does NATO actually represent? Indeed, the Euroscepticism which understandably had become the majority view in Britain by 2016, was not only opposed to the balance of matters effecting the UK the EU as it existed, but also the direction of things to come and the moves to further centralize and empower the Brussels bureaucracy in ways unacceptable. At the risk of stating the obvious, Eurosceptics oppose the further centralization of the EU as it would give rise to an EU Army, and would either be a ‘final blow’ to the sovereignty of European states or act as a rapid catalyst towards the same. The debate over the utility and necessity of a European Army is a difficult one to follow, because there is one side – the EU Army side – which really can’t say the quiet part out loud. And the quiet part is that NATO in Europe functions more like an occupying force that relies on indigenous enforcers, its command structure being effectively a comprador one. Because of that, the EU Army side of this debate has had to make specious claims that it would work in tandem with NATO, would not replace NATO, and would even strengthen NATO. All of these are ridiculous when unpacked, but as necessary to say as Biden’s anachronistic and demonstrably false statements that the U.S. holds NATO Article 5 as a “sacred commitment”. Turkish forces fighting U.S. advisors embedded with the U.S.-backed YPG would be surprised to hear that Article 5 was still relevant. As with the case of the Greece-Turkey strategic stand-off, the question arises again. When Merkel blasted Obama’s NSA in 2013 for spying on Germany, the quiet part was audible. But it would have been untoward to have publicly teased out the logical deduction any reasonable person would make from this. And this in itself represents a self-consciousness of the weaker and more difficult to articulate position. Not because the logic can’t be made clearer, but because the truth of it all – that multipolarity means that the EU and U.S. may not have the same strategic interests – threatens the entire post-WWII order of things. The pretext of course for the need for NATO is the existence of a Russian Federation existing as a single geopolitical entity, and not as an additional dozen states carved out of Russia’s existing oblasts, which is the openly professed fantasy of NATO’s media-intelligence wing, the Atlantic Council. Prizes have been awarded by Atlantic Council-supported ACTR to university students who developed schemes, maps, and socio-economy and political data towards the division of Russia into ten or so more states. But even as NATO Secretary General Jens Stoltenberg bemoaned on June 15 of this year that the NATO-Russia relationship, “is at its lowest point since the Cold War, and Moscow’s aggressive actions are a threat to our security.“, this is pure theatrics. It would be surprising if any leader of a European state believed this was really the case, knowing instead that the present state of EU-RF relations is the consequence of hyperventilating problems into existence. For many decades, the encroachment of the EU and NATO into Central and Eastern Europe were seen as one and the same. But in reality, NATO represented itself as the military enforcer of Trans-Atlanticism and trilateralism in Europe. This meant that an expanding EU was permissible within the strict rubric of also being advantageous to Trans-Atlantic banking in the form of the IMF, which acts like a tax or tithing upon European capital paid towards the City of London and Wall Street and ensuring that the Eurodollar – one of the parents of today’s EURO – was reliant on the Petrodollar as the reserve currency. Conclusion While France cries foul in defense of its own arms industry, certainly the brains behind Macron sees the rise of AUKUS as both a tremendous opportunity and pretext to justify the Franco-German agenda already in play. Liberal-idealist opposition to the creation of an EU Army seems to stem from some alternate reality where each European state doesn’t already possess an armed force. They argue as if foreign aggression upon the EU will be invited and not, as logic would inform us, be discouraged by the existence of a coherent and singular command structure such as the EU Army presents. There is a failure to understand that a disunited Europe invites any number of great powers to be able to play divide and conquer in and between European states, to the detriment of all European states. The primary and sacrosanct raison d’etre for the EU in the first place is to avoid the sorts of wars between European states which twice destroyed Europe in the 20th century, which led to the strategic advantage of the U.S. as a global hegemon. To wit, E.H Carr’s work exposed that for nearly three hundred years (writing from the 1940’s), the foreign policy of England (in its various iterations) was to divide continental European power by pursuing policies which created conflicts between Germany and France. Likewise, we see no small role in the financial schemes of the U.S. and England that led to both European conflicts in the 20th century. And so in looking at costs, of course always left out is the ‘cost of not’. The focus on costs of such a European Army fails to understand the relationship that the EU is in today with regard to the U.S. dollar. The EU must frame its expenditures in budgetary terms precisely because of the Atlanticist financial scheme, where the U.S. can create money at whim but the EU must operate within the rubric of monetary scarcity. So in thinking that the U.S. is presently paying for European security, what is ignored is a macroscopic view which accounts for opportunity cost, profit sharing, and liabilities that arise. The U.S. role in European security, as we have said, is to secure U.S. interests in Europe. Euroscepticism, a genus with numerous species, opposes the rise of an EU Army as mentioned, but not only in the UK. Across the EU, the thinking and rationale is – at face value – the same. But beneath the surface, as E.H Carr would likely agree, is a quite opposite dynamic. Nationalist Euroscepticism has been the most potent force, with other species whose skepticism is rooted in other matters often tagging along. The critical point here is that the more radical the nationalist Euroscepticism, the more likely it is that skeptic views positively a confederal type arrangement between European states on the basis of identity and shared history. They often paint their own alternate solution wherein European states are in some kind of organization that rings nearly identical to the EU itself, (“a single Europe of a hundred banners”), with some notable exceptions such as the financial structures in the EU in the form of the Troika. And that is the solution: the rise of an EU Army would also be able to support financial independence of the EU from the U.S.-UK financial grip. A truly sovereign EU would also have sovereign financial institutions, which today it lacks. And it is precisely the contemporary financial arrangement that inspires nationalist-driven Euroscepticism. It is only this that could make the EU into the kind of confederation that nationalist Eurosceptics would find acceptable, even desirable. AUKUS likewise is based on a common historical relationship to Britain, and while oceans still separate the member states, the alliance represents a turn to doctrines descended from spheres of influence as opposed to the universalist values schema which defined the now failed gambit to realize Trans-Atlanticism into a permanent unipolarity. Both AUKUS and the rise of an EU Army are manifestations of a growing multipolarity, and could be critical to stability and a decrease in the hostilities presently driven by the global ambitions of Atlanticism. While AUKUS formally exists to counter China, it does so on the basis of shared history and spheres of influence. That means that the logic of containing China within such a framework also contains AUKUS. Civilizational spheres such as an Anglo-sphere, or a Eurosphere, or like China (which by itself is a civilization) all set clear borders of legitimacy. This is entirely at odds with the disastrous attempt to build a single world order on the basis of abstract and universal values, dictated from an imperial center. Tyler Durden Wed, 09/22/2021 - 02:00.....»»

Category: blogSource: zerohedgeSep 22nd, 2021

JPMorgan Makes An Unexpected Discovery: Delta Variant Only "Half As Infectious As Assumed"

JPMorgan Makes An Unexpected Discovery: Delta Variant Only "Half As Infectious As Assumed" Now that the Delta variant in the US has peaked in terms of new cases, hospitalizations and deaths, media fearmongering surrounding the latest round of the covid pandemic has understandably been quietly pulled from the front pages at least until such time the mu variant, or some other virulent strain du jour, makes a triumphant appearance and Fauci is again trotted across the mainstream media to distill a fresh round of fear and set the scene for a new round of restrictions and lockdowns, a cycle that will repeat at least until the mid-term elections which predictably will have to be conducted largely by mail. But while we wait, we wanted to bring attention to a remarkable new analysis from JPMorgan which found that contrary to developed nations, many of which imposed draconian lockdowns, most notably Australia... Source: @ianmSC ... developing nations saw a Delta wave that was "much milder" than anticipated. JPM's discussion and conclusions as to why this may have happened are striking. Taking a step back, over two months ago in early July, JPMorgan wrote a note about EM vulnerabilities to the COVID-19 Delta variant in which it drew attention to seven countries – the Philippines, Peru, Columbia, South Africa, Ecuador, Thailand and Mexico – which at the time looked particularly vulnerable due to a combination of low prevalence of the Delta variant and low vaccination rates. Given the widely accepted assumption that the Delta variant is much more infectious than prior strains of SARS-CoV-2, and given the prevailing trends in vaccination rates, JPMorgan then estimated that the spread of the Delta variant would push up the effective reproduction numbers (Re) significantly in these countries. JPMorgan's concern was that these seven countries would see significant gains in COVID-19 infections which would prompt further restrictive measures on mobility and mixing in some countries (EM Asia) or lead to worsening in public health and confidence in others (Latin America): "we thought that Re in the Philippines would rise from 0.92 to 1.97 as the Delta variant became fully prevalent. At an Re of 0.92 new infections are falling, while at an Re of 1.97 new infections are doubling every six to seven days." What happened next was unexpected: JPMorgan policy research analyst David Mackie found that "the Delta wave was much milder than expected: none of these countries saw the gains in Re that we anticipated." This brings us to the latest note from JPM titled "What happened to the COVID-19 Delta wave in vulnerable EM countries?" in which the bank tries to explain just why it was so wrong with its modeling and assumptions. The bank starts off by showing the evolution of the reproductive numbers (Re) over the past couple of months for these seven countries. While Re did initially rise over the summer as the Delta variant spread, which led to an increase in infections, it was not by as much as expected. While on average, Re was expected to rise by 0.58 from the end of June to the time when the Delta variant was fully prevalent (from 1.07 to 1.65), the average rise was only by 0.24 (from 1.07 to 1.31); in other words, around half of the expected gain in Re did not occur. "How can we explain this shortfall?" JPMorgan's Mackie asks, and answers: There are five areas which could contribute to an explanation: mobility; vaccinations; acquired immunity from infection and recovery, seasonality and the infectiousness of the Delta variant. Starting at the top, JPMorgan points out the obvious: mobility cannot explain the lower than expected Re. Mobility did decline sharply in July in the Philippines, South Africa and Thailand, but these declines were mostly reversed during August. "The short-lived nature of the decline in mobility in these countries implies only a temporary depressing effect on Re" JPM observes and adds that on average across the seven countries, higher mobility contributed 0.16 to the change in Re from the time of our original note to the moment that the Delta variant reached full prevalence. Another possible explanation for the far more moderate-than-expected rise in Re - the preferred explanation of Anthony Fauci - is that actual infections have been much higher than reported infections, which would have introduced more immunity into the populations. This is notable because as JPMorgan then notes, in its analysis the bank takes reported infections and assume that acquired immunity from infection and recovery is the same as from full vaccination. This assumption would make the Biden admin, which sternly refuses to discuss the impact of natural immunity and is desperately trying to force jabs on everyone, quite displeased. Yet this too is hardly the full story: according to JPMorgan, with these assumptions acquired immunity from infection and recovery has pushed down Re by just 0.02, and means that aAlthough actual infections are likely above reported infections, the under-reporting would have to be very large to make the contribution to the change in Re significant in size. That is unlikely. The most likely, and most politically problematic explanation, proposed by JPMorgan is that "the Delta variant may be less infectious than initially assumed." As JPM explains, the impact of infectiousness comes through changes in the basic reproduction number (R0). In the bank's framework, on a forward looking basis it makes assumptions about the level of R0, but on a backward looking basis R0 is the residual given the path of Re is already known. In the bank's original, July  note, it had assumed an R0 of 3.0 for the original wild strain of SARS-CoV-2, 3.9 for the Alpha variant (an increase in infectiousness of 30%) and 5.2 for the Delta variant (a further increase in infectiousness of 33%), in line with what the accepted "science" claimed was reasonable. As JPM further notes, assuming that the Alpha variant was the previously dominant strain, the spread of the Delta variant should have added 1.3 to Re as it moved from zero to full prevalence. But in the event, the implied increase in R0 over the past couple of months has been much less than expected. Table 3 compares JPM's original expectation of the contribution of R0 to the change in Re with its latest estimate of the contribution. On average, the bank finds that "the estimate of the contribution to the change in Re of increased infectiousness of the Delta variant has been 0.56, around half of our initial estimate." What does this mean? Simple: as Mackie explains, "it is very possible that the Delta variant is around half as infectious as initially assumed." While this - JPM exclaims optimistically - would be very positive going forward, and would limit any increase in infections in the coming months, it would be devastating for such institutions as the NIH, not to mention Biden's chief covid advisor, Fauci, whose entire argument since the start is that the delta variant was far more infectious than any of the previous covid variants; it would also once again make a mockery of "the science" which had fully supported the theory that Delta had a far greater infectiousness. Of course by even getting this far, the JPMorgan analyst may have broken most of the most cardinal of taboos of delta variant discussion in "polite society", so we are not surprised that he did not even dare breathe the word "ivermectin" and its use in Peru, Philippines, South Africa, Ecuador, Thailand and Mexico. Tyler Durden Tue, 09/21/2021 - 21:25.....»»

Category: blogSource: zerohedgeSep 21st, 2021

Op-Ed: Small Businesses, Cooperation Bolster Real Estate Market by Maintaining Affordability, Equity

As more than 31 million small businesses across the country were recognized during National Small Business Week, it’s a good time to look at how small, local operations drive so much of the economy and search for ways to continue to level the playing field for them and for consumers. When it comes to “buying local,” small businesses […] The post Op-Ed: Small Businesses, Cooperation Bolster Real Estate Market by Maintaining Affordability, Equity appeared first on RISMedia. As more than 31 million small businesses across the country were recognized during National Small Business Week, it’s a good time to look at how small, local operations drive so much of the economy and search for ways to continue to level the playing field for them and for consumers. When it comes to “buying local,” small businesses could not be more front and center than when it comes to purchasing a home. In fact, of the 1.5 million REALTORS® across the country, more than 1.3 million are small businesses like me who are focused on our local communities. Of course, the local economic impact of housing is about more than just real estate agents. Preparing a home for the market often involves photographers, cleaners, landscapers, decorators and more, many of whom are small business owners themselves. Taken in total, small business has a significant impact on real estate—in fact, every home sale generates roughly $88,000 in local economic activity, and every two home sales supports one American job. Overall, real estate accounts for nearly 18% of the nation’s GDP. When you consider this real estate economic “food chain,” many think of it as beginning at their housing search—the listings. Real estate listings aren’t simply picked up from websites or public sources, they are created, licensed, vetted, verified, marketed, publicized and shared by independent contractors and small business real estate professionals like me and my team, and then posted on localized data hubs. These hubs allow even the smallest businesses to immediately compete with large ones by creating and participating in this marketplace, where all have access to the same reliable and trusted data. Part of an ongoing fight to maintain equitable accessibility to these listings for all consumers and a level playing field for small business brokerages has to do with so-called “pocket listings.” Such listings allow for the marketing of properties to select consumers before opening them up to all potential buyers. Addressing these types of private listings is critical to ensuring fair competition among small businesses and crucial consumer protection, especially in hot markets where properties sell extremely fast. New guidelines implemented in late 2019 ensure that listings must be submitted to the local marketplace within one business day of marketing a property to the public. This is important in supporting a transparent, pro-consumer market, benefitting both sellers and buyers. Next, let’s consider house hunting and the choice of whom to work with throughout this important process. Another benefit of the real estate marketplace is that it spurs entrepreneurship and innovation and allows consumers to choose their business partners, whether they be small enterprises or large ones. This also allows for choice in service models and the fee payment options, including different commission options or flat fees. It is noteworthy that one of the compensation models, a success or contingent fee, is strongly pro-consumer. If the real estate agent does not sell the property, he or she does not earn a fee. When it comes to the offer prices for properties and closing fees, the real estate marketplace also makes the transaction more affordable. The commitment to cooperation—in which the listing broker pays the buyer broker—allows countless first-time homebuyers and low- and middle-income Americans to be able to afford both a down payment and professional representation. And we know that these savings go a long way. For many prospective buyers, saving for a down payment is difficult enough. The average American household has about $8,800 in the bank. That’s barely 50% of the average down payment for a starter home. Most lenders don’t allow real estate broker commissions to be financed. As a result, for every 1% of broker commission fees that first-time buyers might have to pay, the prices for their homes grow by another $2,000. Buyers, particularly first-time buyers, benefit from the advocacy and representation that licensees provide, particularly given the competition for properties and the complications of the home-buying process. So, having celebrated small businesses in America last week and in the spirit of keeping that momentum going forward, I’m proud to be a REALTOR® who is one of the more than 4% of all U.S. small businesses. We’re out there each and every day participating in a real estate marketplace that advances small businesses and promotes equity for consumers. Ron Phipps Principal Broker at Phipps Realty Inc. Ron Phipps, a REALTOR® for more than 40 years from Warwick, Rhode Island, was the 2011 president of the National Association of REALTORS® (NAR). Phipps is principal broker of Phipps Realty, a family business started by his mother in 1976. In addition to being NAR’s president, Phipps has served as 2003 regional vice president, 2009 first vice president and 2010 president elect. An NAR director since 2000, he has also chaired numerous Presidential Advisory Groups and committees. As part of his service on the 2008 Advisory Group on Professionalism in the industry, Phipps became one of the founding members of REALTOR® University. The post Op-Ed: Small Businesses, Cooperation Bolster Real Estate Market by Maintaining Affordability, Equity appeared first on RISMedia......»»

Category: realestateSource: rismediaSep 21st, 2021

Southern California hasn"t had a big earthquake since 1857. Here"s what would happen if a mega earthquake hit California.

The San Andreas fault is overdue for a major earthquake also known as "The Big One." Here's what experts say could happen when it hits the West Coast. California is located in a hot-zone of fault lines that can rupture without warning. Parts of the San Andreas fault have not ruptured in over 200 years, meaning it's overdue for a high-magnitude earthquake commonly referred to as "The Big One." Here's what experts say could happen in seconds, hours, and days after the Big One hits the West Coast. See more stories on Insider's business page. Following is a transcript of the video.Narrator: Catastrophic earthquake scenarios have played out on the silver screen for decades, terrifying viewers with quakes that can collapse skyscrapers or topple entire cities. Here's what will happen if the big one hits the West Coast.Narrator: On July 4, 2019, Ridgecrest, California, was hit with a 6.4 magnitude earthquake and then a 7.1 just one day later. But neither of these compare to the long-awaited big one, which scientists predict will eventually rattle the golden coast. But when it hits, what will that actually look like? Here's what experts say could happen in the seconds, hours, and days after the big one.Narrator: While experts can't know exactly when a quake will occur, they have a pretty good idea of where. California is located in a hot zone of fault lines, the most notorious of them the San Andreas Fault.John Vidale: You know, here in California you have dangers from a number of different kinds of earthquakes. The major danger is from the earthquakes on the San Andreas Fault system.Narrator: On average, the San Andreas Fault ruptures every 150 years. The southern parts of the fault have remained inactive for over 200 years.Vidale: We haven't had a big earthquake in Southern California really since 1857.Narrator: In other words, we're overdue for a major shake. According to a 2008 federal report, the most likely scenario is a 7.8 magnitude quake that would rupture a 200-mile stretch along the southernmost part of the fault.Vidale: It's basically moving the ground several yards over an area of 50 square miles. So the power of a magnitude 7.8 earthquake is probably close to the power used in the whole state for a year. Basically something that we as a civilization have trouble creating, short of, like, a nuclear explosion.Narrator: If you are near the epicenter of the earthquake, it will be nearly impossible to stand.Vidale: People have this idea of running out of bed, out of their buildings, and that's a terrible idea, because a lot of what we see in earthquakes is people with broken legs and people who've run through glass. The best thing to do, like we always say, is duck, cover, and hold. Get under some piece of furniture. The main point is to protect your head and chest.Narrator: During and immediately following the shaking, buildings could collapse.John Wallace: The number of buildings that were constructed before about 1980 is really significant, and most of these buildings are very vulnerable to damage and collapse.Narrator: In this time-lapse video, you can see how building components would hold up in a high-magnitude earthquake.Wallace: 'Cause the San Andreas will produce the kind of long-period shaking which would be very damaging to very tall buildings, say, in downtown LA, and Century City, and Long Beach, and so forth. Older steel buildings, the connections in them have not necessarily been designed to withstand the maximum forces that actually can be generated.Narrator: Unreinforced structures are the least stable, but even buildings up to code could crumble.John Stewart: The building code, with its minimum requirements, does not ensure that the building will be serviceable after an earthquake. It's intended to not kill anybody. There's a sense that if it's modern, code-designed, it's earthquake-proof and everything should be great, but that's not the reality.Narrator: Five steel high-rises could collapse completely, while 10 others will be red-tagged, or unsafe to enter. And, no, the quake would not cause a tsunami, despite what movies would have you believe.Vidale: To trigger a tsunami, it takes an earthquake that moves the ocean floor, and most of the San Andreas is on land, so there would be a little bit of waves generated from a San Andreas earthquake, but nothing that would be dangerous.Narrator: The quake could kill about 1,800 people and leave 50,000 or more with injuries. While people could die from falling debris and collapsed structures, the highest death toll would be from fires.Vidale: Historically, the biggest hazard from earthquakes has been fire. In the 1906 earthquake there were 3,000 or 4,000 people who were just caught in that wave of fire that swept through the city.Narrator: The aftermath of the big one will wreak havoc on infrastructure and the economy.Scott Brandenberg: Below our streets and our buildings is this really complicated network of infrastructure that could be damaged, and a lot of the things we take for granted every day won't be available anymore, right? Like water, electricity, being able to drive where you need to drive.Narrator: Parts of the San Andreas Fault intersect with 39 gas and oil pipelines. This could rupture high-pressure gas lines, releasing gas into the air and igniting potentially deadly explosions.Stewart: So, if you have natural-gas lines that rupture, that's how you can get fire and explosions.Narrator: And after the fires burn out, one of the biggest concerns in a major earthquake is access to fresh water. The major aqueduct networks that pump water into Southern California all cross the San Andreas Fault and could be seriously damaged.Stewart: So we would be without the lifelines that bring in imported water to the region. They cross through tunnels, cross through aqueducts near the surface. All of these would be ruptured, and so we would be losing 60% of our water supply. Many of these distribution lines for water are near sewer lines, which would also be broken, so now you have a situation where contaminants are potentially getting into the water supply. Narrator: Experts say you should keep at least a two-week supply of water in your home.Narrator: As the ground shakes and sediments shift, there will be landslides throughout Ventura and Western Los Angeles County.Brandenberg: There could be thousands of landslides. There have been earthquakes that have produced thousands. Landslides definitely can cause fatalities, property damage. We have a lot of people who live up in the hills. Right? So that's the location where you would be likely to see landslides affecting people.Narrator: And finally, the big one will severely impact the economy. Major transportation networks, like highways and railways, could be unusable for weeks and even months.Brandenberg: Some bridges may not be passable after an earthquake. We've had bridges collapse during past earthquakes.Stewart: You might start seeing key industries leave, population loss, and this could have, you know, devastating long-term impacts for the region. Narrator: The estimated financial cost of the big one is a whopping $200 billion, with $33 billion in building damages and $50 billion in lost economic activity. This all sounds pretty bad, but keep in mind that this is based off of a worst-case scenario. The true impact of a major earthquake is based on a range of unknowable factors. Also, smaller earthquakes on faults directly beneath major population centers are a serious concern.Vidale: But the worst-case earthquakes are hard to predict. You know, that earthquake in Japan in 2011, their cost almost entirely came because their nuclear power plant melted down. It's very hard to predict what's gonna fail in a big earthquake.Narrator: So, how can Californians prepare for the big one? Brandenberg: Really have a plan in place. You know, where are you going to meet? What are you going to do? Have water ready. I have a 55-gallon drum full of water. There's some chemical additive I put in it so it's potable for five years. Fifty-five gallons is the right amount for my... I have a family of four. That'll last us for two weeks. Canned food. You know, you have to be ready. I would say it's best just to plan to stay sort of where you are. Getting out of LA is bad enough without an earthquake, right? Traffic's already terrible. If roads are closed and people are all trying to leave, it's gonna really be bad.EDITOR'S NOTE: This video was originally published in August 2019. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 21st, 2021

The stock market"s fear gauge could signal more weakness ahead if it closes above this key level, according to technical analyst Katie Stockton

"We'd be concerned if the VIX closes above 25 for two consecutive days because that would hold bearish implications for the inversely correlated S&P 500." A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., March 3, 2020. Andrew Kelly/Reuters The stock market could have more downside ahead after Monday's Evergrande-induced meltdown, according to technical analyst Katie Stockton of Fairlead Strategies.Stockton has her eyes on the stock market's fear gauge to sense if more downside is likely.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.The stock market could still have further downside ahead if the Volatility Index closes above the key 25 level for the second day in a row, according to a Tuesday note from technical analyst Katie Stockton of Fairlead Strategies.Stockton is keeping an eye on the market's fear gauge as investors assess the damage from a potential default of China's second largest property developer, Evergrande.The potential insolvency risk for Evergrande sent the S&P 500 down as much as 3% yesterday after it became clear that the company may be unable to meet its upcoming debt payments of $83 million on Thursday. Now many market participants are wondering if Evergrande's $300 billion in liabilities could represent a systemic risk to markets.According to Stockton, the S&P 500's decisive close below its 50-day moving average on Monday means secondary support at 4,238 is in play, representing potential downside of 3% form current levels. "The 5% pullback is differentiated negatively from other dips below the 50-day moving average in that the indicators have seen notable deterioration. The daily MACD indicator is in negative territory and the weekly stochastics have fallen from overbought territory, increasing risk of downside follow-through," Stockton explained.Monday's price action is comparable to the March 4 low, in which the S&P 500 fell decisively below its 50-day moving average. But that price action was reversed on March 5, when the S&P 500 jumped back above its rising 50-day moving average."Should we see the same from the S&P 500 today, that would indicate that the pullback has matured already. Otherwise, we would brace for a breach of the cloud and test of secondary support," Stockton said.Despite Tuesday's relief rally of about 0.5%, the S&P 500 still remains 1.5% below its 50-day moving average.Stockton is watching the 25 level on the VIX to sense if more downside is likely."We would be concerned if the VIX closes above 25 for two consecutive days because that would hold bearish implications for the inversely correlated S&P 500," Stockton concluded.As of Tuesday afternoon, the VIX traded at 23.57 and hit an intraday high of 25.60. Stockcharts.com Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 21st, 2021

Brooks (BRKS) Moves 8.8% Higher: Will This Strength Last?

Brooks (BRKS) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road. Brooks Automation BRKS shares rallied 8.8% in the last trading session to close at $102.45. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.1% gain over the past four weeks.The upswing in share price can be attributed to Brooks Automation's announcement that it has agreed to divest its Semiconductor Solutions Group business (automation business) to Thomas H. Lee Partners for $3 billion in cash. The deal is expected to close in first half of 2022.This supplier to semiconductor manufacturers is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of +52.9%. Revenues are expected to be $337.53 million, up 37.1% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Brooks, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BRKS going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Brooks Automation, Inc. (BRKS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Plunge Amid China, Fed and Washington Concerns

Stocks Plunge Amid China, Fed and Washington Concerns After a couple weeks of sluggish trading and modest declines for the indices, we finally experienced a significant pullback on Monday that many investors were waiting for. Stocks dropped more than 1.7% to begin another busy week, which includes a very important Fed meeting and a debt ceiling debate in Washington. The NASDAQ plunged by 2.19% (or about 330 points) to 14,713.90. The Dow was off 1.78% (or about 614 points) to 33,970.47, while the S&P slipped 1.7% to 4357.73. Stocks are coming off two consecutive weeks of losses as the market worries about several factors, including the delta variant, rising inflation and whatever Chair Jerome Powell & Friends have to say later this week. It should be noted, however, the stocks came off their lows before the close on Monday. For example, the Dow was flirting with a 1,000-point plunge earlier in the session. Despite all the domestic concerns at the moment, one of the bigger problems today came all the way from China. Evergrande Group, that country’s biggest property developer, looks on the verge of defaulting, which has investors biting their nails over the possibility of contagion at such a tender time for the U.S. economy. Jeremy Mullin, editor of Counterstrike and Commodity Innovators, has been talking about Evergrande for the past week. “The Evergrande situation is accelerating, as investors are starting to believe that the Chinese property company will default. The prior thought was that the Chinese government would bail them out, but they actually want the housing market to cool. What better way to do so to let a bad actor fail?” said Jeremy. “Goldman thinks the contagion is limited to Asia, but notes there are downside risks to China growth in Q4 and into next year. The firm says an Evergrande collapse could be a headwind for global GDP.” Here at home, we’re getting ready for this week’s Fed meeting, which begins tomorrow and concludes with a statement and comments from Chair Powell on Wednesday. Investors want to know when they will start scaling back on the pandemic-era asset purchase program, and if the timeline will be delayed amid the delta variant. If China and the Fed weren’t enough, our friends in Washington could have a say in the market’s direction as the deadline to raise the debt ceiling draws near. The House will be voting later this week to keep the government funded past Sept 30 and avoid another shutdown. And all of this is happening in September, which always gives investors a sick feeling since it is historically the worst month of the year for stocks. So far, it’s living up to its reputation. Today's Portfolio Highlights: Blockchain Innovators: The logistics industry has been a fantastic proving ground for blockchain technology. In fact, there’s a whole organization called the “Blockchain in Transport Alliance” (BiTA) with 500 members across 25 countries that encourages the use and adoption of this game-changing technology. One of those members is Covenant Logistics (CVLG), which is expected to generate EPS growth of 217% for this year on revenue growth of more than 18%. Plus, rising earnings estimates made the stock a Zacks Rank #1 (Strong Buy). Dave added CVLG on Monday, while also getting out of Rio Tinto (RIO) after the name slipped all the way to a Zacks Rank #5 (Strong Sell). Read the full write-up for a lot more.   Headline Trader: The NASDAQ 100 has dipped below its 50-day moving average and right into a “perfect profit-pulling opportunity”. But Dan thinks there’s more bearishness to come, so he decided to scale out of the triple short ProShares UltraPro Short QQQ (SQQQ) for more than 11% on Monday. The editor bought this hedge back on August 30 to protect the portfolio from an overbought situation in the NASDAQ. It has worked out just as planned so far. Commodity Innovators: The growing demand for electric vehicles (EVs) has made lithium a very hot commodity of late... and Jeremy expects that demand to continue. So today’s drop in the Global X Lithium & Battery Tech ETF (LIT) provides a terrific opportunity to pick up this long-term play at a bargain. The fund tracks the Solactive Global Lithium Index. The editor added LIT on Monday and also got out of Lindsay Corp. (LNN). Read the full write-up for more. Black Box Trader: More than half of the portfolio was refreshed in this week's adjustment. The six stocks that were sold included: • LKQ Corp. (LKQ) • PVH Corp. (PVH) • Toll Brothers (TOL) • Textron (TXT) • Levi Strauss (LEVI) • Deere (DE) The new buys that filled these spots were: • Alcoa (AA) • AutoNation (AN) • Olin Corp. (OLN) • Signet Jewelers (SIG) • Goldman Sachs (GS) • The Mosaic Co. (MOS) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Zacks Short Sell List: This portfolio had three of the best-performing stocks on Monday, which makes sense on a day when the S&P plunges by 1.7%. The service is designed to take advantage of falling and volatile markets. The short in TripAdvisor (TRIP) led the way with a rise of 7.6%, while the shorts in Enphase Energy (ENPH) and JD.com (JD) advanced 5.25% and 4.6%, respectively. The weekly update for this portfolio is tomorrow. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

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

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

Category: topSource: timeSep 21st, 2021

The U.S. Is Losing the Global Race to Decide the Future of Money—and It Could Doom the Almighty Dollar

"I don’t think the U.S. is aware there is a race" In cities across China, the country’s central bank has begun rolling out the e-renminbi—an all-digital version of its paper currency that can be accessed and accepted by merchants and consumers without an internet connection, credit or even a bank account. Already having conducted more than $5 billion in e-renminbi transactions, China has opened its digital currency up to foreigners. Next year, when Beijing hosts the Winter Olympic Games, authorities are expecting to let the world test drive its technological achievement. The U.S., by contrast, is having trouble even concluding its multi-year exploration into the possibility of an e-dollar. In fact, an upcoming Federal Reserve paper on a potential U.S. digital currency won’t take a position on whether the central bank of the United States will, or even should, create one. [time-brightcove not-tgx=”true”] Instead, Federal Reserve Chair Jerome Powell said in recent testimony to Congress, this paper will “begin a major public consultation on central bank digital currencies…” (Once planned for July, the paper’s release has since been moved to September.) Once the world leader in digital payments and technological innovation, the U.S. is being outpaced by its top global adversary as well as much of the industrialized and the developing world. The Bahamas recently announced the integration of its digital Sand Dollar into a stock exchange, while Australia, Malaysia, Singapore and South Africa are moving forward with the world’s first cross-border central bank digital currency exchange program led by the Bank for International Settlements (BIS), which is known as the central bank of central banks. Such developments have been somewhat outshined by El Salvador’s recent decision to make bitcoin a legally accepted currency, which few expect to make significant impact in the payment space. But outside of the cryptocurrency space, nations around the globe are making significant strides in the development of the digital future of money — supported by governments and backed by powerful central banks. Leadership in this space will have implications for more than just payments: geopolitical ambitions, economic growth, financial inclusion and the very nature of money could all be dictated by who leads the charge and how. “I don’t think the U.S. is aware there is a race” Digital currencies are the next wave in the “evolution of the nature of money in the digital economy,” Hyun Song Shin, economic adviser and co-leader of the Monetary and Economic Department at the Bank for International Settlements, tells TIME. As more of our world migrates from physical brick-and-mortar to wireless and cloud-based, the way we pay for things is changing as well. A central bank digital currency would operate just like cash, but instead of having to carry it in a physical wallet or put it into a bank account, it would be stored and accessed digitally. Not only could U.S.-backed digital currency facilitate easier, modern banking, it could prove vital in protecting American international influence. Late to the party, the U.S. is “stepping up its research and public engagement” on digital currencies, the Federal Reserve says, including forming working groups on cryptocurrency and other kinds of digital money, and experimenting with technology that would be central to producing a digital dollar. The Fed’s regional Boston branch is overseeing these efforts with the Massachusetts Institute of Technology on what’s known as Project Hamilton. But the path towards a digital U.S. dollar has met many challenges, skeptics and outright opponents. All while China, and other countries, push forward. Lagging behind the world Just how far behind is the U.S. in the development of a central bank-issued digital currency (CBDC)? According to global accounting firm PwC’s inaugural CBDC global index, which tracks various CBDCs’ project status from research to development and production, the U.S. ranks 18th in the world. America’s potential efforts trail countries like Sweden, South Korea and China but also countries like the Bahamas, Ecuador, Eastern Caribbean and Turkey. China, with its government’s hyperfocus on maintaining control and overseeing data, has been working to develop a CBDC for almost a decade. And the U.S. is probably not close to catching up. Analysts like Harvard economics professor Kenneth Rogoff, who study monetary policy and digital currencies, estimate that the U.S. could be at least a decade away from issuing a digital dollar backed by the Fed. In that time, Rogoff argued in an op-ed earlier this year, the modernization of China’s financial markets and reduction or removal of its currency controls “could deal the dollar’s status a painful blow.” Read More: How China’s Digital Currency Could Challenge the Almighty Dollar China has already largely moved away from coin and paper currency; Chinese consumers have racked up more than $41 trillion in mobile transactions, according to a recent research paper from the Brookings Institution, with the lion’s share (92%) going through digital payment processors WeChat Pay and Alipay. “The reason you could say the U.S. is behind in the digital currency race is I don’t think the U.S. is aware there is a race,” Yaya Fanusie, an Adjunct Senior Fellow at the Center for a New American Security, and a former CIA analyst, tells TIME in an interview. “A lot of policymakers are looking at it and concerned…but even with that I just don’t think there’s this sense of urgency because the risk from China is not an immediate threat.” Not only is the U.S. running significantly behind in the development of a CBDC, we are trailing the rest of the world in digital payments broadly. Kenya, for example, has almost fully digitized its economy through its digital currency and payment system MPESA, making transactions free and almost instantaneous. India’s Unified Payments Interface (UPI) allows users to transfer money instantly between bank accounts with no cost. Brazil’s PIX facilitates the transfer of money between people and companies in up to 10 seconds. All of these programs work through and are overseen by the countries’ central banks rather than commercial banks or other private companies. What’s holding the U.S. back? Critics argue CBDCs are simply a solution in search of a problem and potentially harmful. Many see support from the banking sector as vital to the success of a digital U.S. dollar, however commercial banks in the U.S. have taken a largely adversarial stance. “The proposed benefits of CBDCs to international competitiveness and financial inclusion are theoretical, difficult to measure and may be elusive,” the American Bankers Association said in a statement at a recent congressional hearing on digital currencies. “While the negative consequences for monetary policy, financial stability, financial intermediation, the payments system, and the customers and communities that banks serve could be severe.” The Bank Policy Institute, which lobbies on behalf of the country’s largest banks, went so far as to argue that neither the Fed nor the U.S. Treasury even has the constitutional authority to issue a digital currency. Commercial banks dominate the U.S. financial system to such a degree that unraveling them would be ostensibly impossible, experts say, they also would be a powerful adversary. Former Goldman Sachs managing director Nomi Prins notes banks have clearly seen the writing on the wall. “Banks are centralized middlemen with respect to financial transactions,” Prins, author of Collusion: How Central Bankers Rigged The World, tells TIME. “The more popular cryptocurrency or digital currency becomes, the fewer profits the banking system can reap from traditional services and verification methods that allow them to hold, take or use their customers’ money, and the more financial power they stand to lose as a result.” Even disruptive financial technologies like PayPal, Venmo and Zelle work through the banking system, rather than around it, thanks in large part to the banks’ power. Central bankers also generally have concluded that commercial banks are a necessary piece of a potential CBDC ecosystem, thanks to their pre-existing regulatory guardrails and ability to move money. Read More: How Jay Powell’s Coronavirus Response Is Changing the Fed Forever Top policymakers at the Fed, including influential Vice Chair for Supervision Randal Quarles, have joined the banking industry in arguing that a digital dollar “could pose significant and concrete risks” and that the potential benefits “are unclear.” Fed Governor Christopher Waller said in August he was “skeptical that a Federal Reserve CBDC would solve any major problem confronting the U.S. payment system,” in a recent speech he titled “CBDC: A Solution in Search of a Problem?” Further, there’s no central U.S. authority with direct oversight or responsibility for any of this. In addition to the Fed, the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Federal Trade Commission, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, Office of Thrift Supervision, Financial Stability Oversight Council, Federal Financial Institutions Examination Council and the Office of Financial Research would all have some stake in the development of a digital currency backed by the central bank, to say nothing of state and regional authorities. “The U.S. has an active congressional debate, which is beneficial and very important,” Federal Reserve Governor Lael Brainard tells TIME in an interview. “But the U.S. also has a diffusion of regulatory responsibility with no single payments regulator at the federal level, which is not as helpful. That diffusion of responsibility is part of what creates the lags that our system is working through.” None of this exists in China where the Chinese Communist Party oversees the central bank, commercial banks and their regulators and is unconcerned with privacy. How a downgraded dollar could hamstring U.S. influence An American CBDC could have lasting geopolitical impact and curb a longstanding international effort to reduce reliance on the mighty U.S. dollar. “Why we should care about this is that the U.S. financial system is not intrinsically dominant,” Fanusie says. “Other countries, both allies and adversaries, are sincerely interested in finding ways to decrease their dependence on the dollar.” With the U.S. dollar as the world’s reserve and primary funding currency, the U.S. can restrict access to funding from financial markets, limit countries’ ability to sell their natural resources and hinder or block individuals’ access to the banking sector. “Other countries, both allies and adversaries, are sincerely interested in finding ways to decrease their dependence on the dollar” While dollar dominance has rankled much of the world for decades, there has been no suitable replacement for the U.S., with its massive economy, sophisticated banking system and sprawling international presence. China is in the midst of a long-term push to simultaneously grow its financial markets and internationalize its currency. Both have the end goal of allowing China and its allies to limit the ability of the U.S. to enforce its will through economic actions like sanctions. Fanusie wrote in a January report that being the first major economy to roll out a digital currency is “part of China’s geopolitical ambitions.” However, the renminbi will not become the world’s reserve currency — at least, not any time soon. But what China has done by being in the forefront of CBDC development is put itself in position to take the lead on development and implementation of rules and regulations for digital currencies on a global scale. “While America led the global revolution in payments half a century ago with magnetic striped credit and debit cards, China is leading the new revolution in digital payments,” writes Brookings’ economic studies fellow Aaron Klein. Why should central banks offer digital currencies? Over the past decade, digital currencies, including cryptocurrency and “stablecoins,” have sprung up like weeds. Some purport to be just as safe as dollars, but are backed by questionable assets. In a crisis regulators worry they could fluctuate wildly in value or lose their value altogether. Having central banks, which are responsible for the printing and circulation of coins and paper money, issue digital currencies is in part a reaction to this private sector activity, Shin says, “accelerated by the potential encroachment of private digital currencies, and the need to preserve the role of money as a public good.” “The status quo is not an option” Notably, a U.S. digital currency could provide benefits to everyday people. It could increase financial inclusion and fix flaws in current payments systems, Shin adds, citing findings of a recent BIS study. For example, transferring money between U.S.-based bank accounts, even those held by the same person, can take days. The process can be even longer when crossing international borders. Credit and debit card transactions similarly don’t settle for days and come with significant fees for merchants, who sometimes pass them on to customers. CBDCs could grant universal access to the banking sector and quickly facilitate the distribution of paychecks and government funds, reducing the need for costly bank workarounds like check cashing and payday loans. Championing CBDCs Brainard has been pushing the Fed to move on a digital currency for years, but there was little urgency from others at the Fed or in Congress. Companies developing their own currencies, consumers investing in cryptocurrency and the COVID-19 pandemic making paper notes anathema to many Americans changed that. Before COVID-19, Facebook’s Libra project (now known as Diem) showed lawmakers and central bankers the potential for a private company to step in and fill the void by effectively minting its own currency that could be spent by users around the world. “The status quo is not an option,” Diem co-creator David Marcus said at the International Monetary Fund’s 2019 fall meeting. “Whether it’s Libra or something else, the world is going to change in a profound way.” Brainard, for one, has taken notice. “My own thinking is that stablecoins and related private sector initiatives are moving very rapidly, which makes it incumbent on us to move more rapidly,” she tells TIME. “That is why I have been pushing to advance outreach, cross-border engagement, and policy and technology research for several years now.” So-called stablecoins — unregulated digital currencies created by private companies that purport to represent dollars but are completely unregulated — have become a significant worry for lawmakers and shown the importance of considering tying currency to a central bank. “It’s getting harder and harder for community banks to compete for new customers when big tech companies can afford to spend billions on marketing and technology,” Sen. Sherrod Brown, who chairs the Senate Banking Committee, tells TIME. “But many of these new ‘fintech’ products don’t come with the consumer protections, federal backing or customer service and relationships with the community that small banks and credit unions provide.” During a hearing on digital currencies in June, Sen. Elizabeth Warren, the ranking member of the Subcommittee on Financial Institutions and Consumer Protection, compared stablecoins to worthless “wildcat notes” that were issued by speculators in the 19th century. Her expert at that hearing, Lev Menand, an Academic Fellow and Lecturer in Law at Columbia Law School, went further in his testimony, calling stablecoins “dangerous to both their users and … to the broader financial system.” With private companies pushing deeper into the digital currency space, rival countries seeking to seize leadership and a public that is moving further away from physical currency, the U.S. is facing a world in which it may not control or even lead the world’s payment systems. That would make the future of money look very different from the past......»»

Category: topSource: timeSep 21st, 2021

Avnet (AVT) Stock Poised to Carry Upward Momentum: Here"s Why

Avnet's (AVT) stock is likely to sustain the upward momentum as it is benefiting from the increased IT spending by companies, continued focus on high growth businesses and robust demand for its products. Avnet AVT stock has performed brilliantly over the past year and has the potential to carry on the momentum further. Shares of the company have surged 42.5% compared with the S&P 500’s rally of 36.9% in a year’s time.However, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks riding high are not necessarily overpriced.Investors, in fact, might lose out on the top gainers in an attempt to avoid the steep prices.A good stock can maintain the momentum and keep scaling new highs. So, more information on a stock is necessary to understand whether or not there is scope for further upside.Image Source: Zacks Investment ResearchWhy Avnet Stock Could Sustain the Upward Momentum?Trades Way Below 52-Week High: Avnet stock currently trades way below its 52-week high, which reflects its potential to go upward. The stock’s closing price of $37.04 on Sep 17 is 18.5% lower than the 52-week high of $45.43 attained on May 25.Top Rank & VGM Score: Avnet currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or #2 (Buy), offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.Upward Estimate Revisions: All four analysts covering the stock have raised the earnings estimates for fiscal 2022 over the past 60 days. During the same period, the Zacks Consensus Estimate for fiscal 2022 has been revised upward by $1.05 per share.Positive Earnings Surprise History: Avnet has an impressive earnings surprise history. The company outpaced estimates in all of the trailing four quarters, delivering an average earnings surprise of 66.8%.Solid Growth Prospects: The Zacks Consensus Estimate of $4.40 for fiscal 2022 earnings suggests growth of 62.4% from the year-ago reported figure. Moreover, earnings are expected to register 10.5% growth in fiscal 2023 and reach $4.86 per share. The long-term earnings per share growth rate is pegged at 25.4%.Attractive Valuation: Avnet currently trades at an attractive valuation multiple. Comparing the stock with the industry and broader sector on the basis of the forward 12-month price-to-earnings ratio, we see Avnet’s ratio of 8.4X is lower than the industry’s 9.5X and the sector’s 30.2X.Growth Drivers: Avnet is benefiting from the robust demand for its products in the communication and defense market. The latest forecast for the worldwide IT spending by Gartner is a positive for Avnet. The worldwide IT spending is anticipated to be $4.2 trillion in 2021, suggesting an increase of 8.6% from 2020. The research firm forecasts worldwide spending on IT services to be up 9.8%, year over year, to $1.18 trillion this year.Avnet has been taking major restructuring steps to streamline its business for the past few years. It intends to focus on high growth businesses only, and divest the low profit or loss making businesses. In doing so, the company sold its troubled Technology Solution business to Tech Data Corporation for $2.6 billion during fiscal 2017.The divestment of the Technology Solution division has enabled Avnet to focus on high growth areas, such as marketing electronic components and related products in the supply chain. The company intends to use its resources to make investments in embedded solutions, Internet Of Things (IoT) and critical digital platforms as well as expand its footprint in newer markets.Moreover, the company’s continued focus on boosting its IoT capabilities is helping it expand in newer markets and gain customers. On the IoT front, the company has made several partnerships with the likes of AT&T T as well as acquisitions, such as Dragon Innovation, Premier Farnell and Hackster.io, to enhance its capabilities in this space. Per the company, the aforementioned acquisitions have expanded its reach to more than two million customers as well as an active community of more than 750,000 entrepreneurs, makers and engineers.Additionally, the company’s cost-saving efforts are aiding profitability. Moreover, Avnet’s expanding partner base is likely to boost top-line growth. Notably, it expects to replace the Texas Instruments TXN revenues with higher-margin revenues by the end of fiscal 2022.Considering Avnet’s growth prospects, it makes sense to invest for long-term gains.Another Tech Stock to ConsiderAnother top-ranked stock to consider in the broader technology sector is CDW Corporation CDW which carries a Zacks Rank #2, at present.The long-term earnings per share growth rate for CDW is pegged at 13.1%. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 AT&T Inc. (T): Free Stock Analysis Report Texas Instruments Incorporated (TXN): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report CDW Corporation (CDW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

After Golden Cross, Pure Storage (PSTG)"s Technical Outlook is Bright

Should investors be excited or worried when a stock's 50 -day simple moving average crosses above the 200-day simple moving average? After reaching an important support level, Pure Storage, Inc. (PSTG) could be a good stock pick from a technical perspective. PSTG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.PSTG has rallied 34% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates PSTG could be poised for a breakout.Looking at PSTG's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 10 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on PSTG for more gains in the near future. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 Pure Storage, Inc. (PSTG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Will Entravision Communications (EVC) Gain on Rising Earnings Estimates?

Entravision Communications (EVC) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions. Entravision Communications (EVC) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.Analysts' growing optimism on the earnings prospects of this Spanish-language media company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.For Entravision Communications, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:12 Month EPSCurrent-Quarter Estimate RevisionsThe company is expected to earn $0.11 per share for the current quarter, which represents a year-over-year change of 0%.Over the last 30 days, one estimate has moved higher for Entravision Communications compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 22.22%.Current-Year Estimate RevisionsFor the full year, the earnings estimate of $0.41 per share represents a change of -4.65% from the year-ago number.There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for Entravision Communications versus no negative revisions. This has pushed the consensus estimate 10.81% higher.Favorable Zacks RankThe promising estimate revisions have helped Entravision Communications earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.Bottom LineEntravision Communications shares have added 8.9% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 Entravision Communications Corporation (EVC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021