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Mastercard (MA), Softcell Tie Up to Boost Cybersecurity in India

Mastercard (MA) collaborates with Softcell, which will distribute MA's RiskRecon to its customers across India and empower them to counter cybersecurity threats. Mastercard Incorporated MA recently joined forces with the Mumbai-based IT service provider and systems integrator company Softcell Technologies Global Pvt. Ltd. to expand the distribution of one of its cybersecurity offerings across Softcell customers throughout India.The cybersecurity product mentioned above refers to the third-party cyber risk management platform of Mastercard — RiskRecon. The platform enables organizations to detect and counter those cybersecurity threats that take place across supply chains and third-party vendors. RiskRecon comes with a self-scan tool that utilizes non-invasive techniques to examine the cybersecurity risk posture of the public systems of an organization.Following the latest partnership, the customer base of Softcell across diversified industries will be able to avail the exclusive scanning and evaluation technologies of RiskRecon and set up a solid digital safety framework. This, in turn, is likely to empower the customers to protect their businesses from the continuous incidence of cyber threats by extending uninterrupted real-time information for proactive management of cyber risks and protecting critical intellectual property, consumer and payment data.Initiatives similar to the latest one reflect Mastercard’s sincere efforts to enhance security in the digital ecosystem and create safe cyberspace. This seems to be the need of the hour, considering the increasing digitization of operations by most businesses to keep pace with the ongoing digital trend. While digitization has been a blessing in disguise for organizations to continue their businesses despite several COVID-19-induced volatilities, the trend to go digital encouraged fraudsters to devise sophisticated methods and technologies to indulge in cybercrimes. This is an alarming concern as cyberattacks compromise payments received by organizations and the confidential data of consumers. This, in turn, might lead to the incurrence of exorbitant costs.Therefore, companies similar to Mastercard providing a comprehensive portfolio of fraud detection solutions with high accuracy for varied industries will be best positioned to capitalize on the increasing incidence of cybersecurity threats. Softcell seems to be the apt partner for distributing Mastercard’s cybersecurity product to its customers in India. Softcell has a solid track record of pursuing a consulting-based approach in aiding businesses to upgrade infrastructure security. Certified professionals across key domains numbering more than 200 also aid Softcell.In addition to boosting presence in India, the recent effort to extend RiskRecon within the country seems to be time opportune as well. India was among one of the top three nations in Asia impacted by the most cyberattacks last year, per a global analysis report of International Business Machines Corporation IBM (published in The Economic Times). The country remains prone to cyberattacks from all across the globe due to its obsolete systems and processes, disjointed and incompetent cybersecurity infrastructure, and inadequate knowledge of cybersecurity.Mastercard remains committed to upgrading its cybersecurity suite on the back of continuous partnerships and significant investments. In April 2022, MA teamed up with the rapidly growing operational resilience company Interos to empower financial institutions with the latter’s credible risk-monitoring capabilities for quickly addressing third-party risks in their businesses. Mastercard even has a program to safeguard its network and platforms from cyber and information security threats.Shares of Mastercard have lost 11.9% in the past six months compared with the industry’s decline of 18.7%.Image Source: Zacks Investment ResearchMA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Similar to Mastercard, other companies like Visa Inc. V and American Express Company AXP are continuously rolling out a diverse range of fraud detection solutions to protect merchants and consumers engaging in digital means amid the growing incidence of cybercrimes.Visa launched the Advanced Identity Score in 2020 with the intent to minimize digital identity frauds and reduce operational costs associated with identity-related forgeries. V actively pursues technology investments to reduce the impact of fraud and safeguard consumer and merchant-oriented information. The CyberSource solution by Visa comprises a diversified portfolio of payment and fraud management tools.American Express has been making every effort to advance its digital arm to assist its merchants and Card Members globally. AXP has its proprietary automated accounts payable (AP) solution American Express One AP, which aims to address the robust demand for AP solutions that secure payment processes via digitization. American Express has collaborated with a few online fraud-prevention companies like Accertify, Microsoft and Riskified to stop card-not-present (CNP) fraud and ensure safer shopping for its worldwide merchants and Card Members.Shares of Visa and American Express have lost 8.2% and 14.9%, respectively, in the past six months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 29th, 2022

Futures Rebound As Hopes Of Imminent Recession Spark "Bad News Is Good News" Reversal

Futures Rebound As Hopes Of Imminent Recession Spark "Bad News Is Good News" Reversal In a world where bad news is good news, and where the looming recession means an end to rate hikes and a start to easing, it didn't take algos long to bid stocks up as treasury yields tumbled after comments by Jerome Powell and dismal PMI data in Europe justified fears that a global downturn is now just a matter of when, not if. After initially sliding more than 1% late on Wednesday, futures rebounded and recovered all losses and were last trading near Wednesday's session highs, up 0.7% or 27 point to 3,790, while Nasdaq futs were up 0.9% at 11,375 as of 715am ET. 10Y yield initially dumped below 3.10% - near a two week low, after trading at 3.50% one week ago -  before bouncing modestly, while the Dollar pushed higher as the euro tumbled after after a series of very poor European PMI prints confirmed that Europe's runaway inflation is pushing the continent into a stagflationary recession, which in turn sent the yield on German 10-year bonds slumping as much as 21 basis points, poised for the biggest two-day decline since November 2011. US 10-year rates traded near a two-week low. In premarket trading, US-listed Chinese stocks climbed  as bullish sentiment around the group continues to grow amid calls from strategists and fund managers that Beijing’s regulatory crackdowns are easing. JPMorgan Asset Management became the latest to voice its support for Chinese tech shares, saying “the worst is over” when it comes to regulatory crackdowns. Here are some other notable premarket movers: KB Home (KBH US) shares climb 4.7% in premarket trading after the homebuilder reported earnings per share and revenue for the second quarter that beat the average analyst estimate. US-listed shares of Chinese electric-vehicle makers rallied in premarket trading after Chinese state television reported that the government may extend tax exemptions on electric-car purchases. Li Auto (LI US) +6%, Xpeng (XPEV US) +5.3% and Nio (NIO US) +2.6% in premarket trading. Cryptocurrency-exposed stocks rebounded in premarket trading as Bitcoin recovered to remain over the closely watched $20,000 level. Coinbase (COIN US) +3%, Riot Blockchain (RIOT US) +3.7%, Marathon Digital (MARA US) +4.4%, Block (SQ US) +0.7%. EBay (EBAY US) shares decline 2.1% in premarket trading as Morgan Stanley assumed coverage of the stock with a recommendation of underweight and a price target of $36, the lowest on Wall Street. Energy companies slide in US premarket trading as oil eases anew amid concerns of slowing global growth. Exxon Mobil (XOM US) -1%, Chevron (CVX US) -1.1%, Imperial Petroleum (IMPP US) -3.1%, Camber Energy (CEI US) -2.4%. Westinghouse Air Brake (WAB US) and AGCO (AGCO US) shares may be in focus as Morgan Stanley cuts them to equal-weight and resumes coverage of Cummins (CMI US) at equal-weight in a note trimming its PTs across most of its machinery and construction coverage.   On Wednesday, in the first day of his Congressional testimony, Powell accepted that steep rate increases could trigger a US recession, and said the task of engineering a soft economic landing is “very challenging” (day two follows). Policy makers are taking drastic steps to cool inflation at a four-decade high and the Fed chair repeated his resolve to get consumer price growth back down to the 2% target. “Market optimism couldn’t survive Jerome Powell’s testimony yesterday, but most of the negative pricing is certainly done by now,” said Ipek Ozkardeskaya, a senior analyst at Swissquote. “The reaffirmation of the Fed’s commitment to bringing inflation down and that recession is a risk are adding to growth worries, which is the dominant fear again,” said Esty Dwek, chief investment officer at Flowbank. Traders are now debating how far the Fed will stretch its rate cycle in the face of an economic downturn. Money markets indicate diminished odds the central bank will raise rates beyond year-end, and rising odds of a rate cut from May 2023. The Federal Reserve “is well served by keeping some hawkishness there,” Steven Major, global head of fixed income research at HSBC Holdings Plc, said in an interview with Bloomberg Television. “Because if they appear that they’ve reached the peak, then financial conditions will loosen and the policy won’t work. So they need a couple more months of this.” European equities traded flat having erased earlier losses of more than 1%. Real estate, autos and banks are the weakest Stoxx 600 sectors; travel is a rare bright spot. European energy stocks slipped for a second session with crude prices under pressure as concerns over a global economic slowdown intensified. The Stoxx 600 Energy index falls as much as 1.9%; TotalEnergies and Shell the biggest drags on the index on Thursday, with wind- turbine firm Vestas and Italy’s Eni also slipping.  Here are some of the biggest European movers today: Aroundtown stock drops as much as 11% after being cut to underweight from neutral at JPMorgan, which also lowered its PT to EU3.6 from EU6 due to excessive downside exposure for the German landlord. Vantage Towers falls as much as 7.6% after Morgan Stanley cut the stock to equal-weight from overweight, saying the shares have outperformed despite challenges in its outlook. Saipem trims losses after declining as much as 21% following the announcement of a EU2b capital increase on Wednesday; Italy’s Consob warns of volatility in the stock when the rights issue starts. Rheinmetall falls as much as 6.3% after HSBC downgraded the German automotive and defense group to hold from buy due to it being temporarily held back by its automotive division Naked Wines slumps as much as 40% after the online wine merchant forecast fiscal 2023 sales of £345m-£375m. The midpoint of the guidance is ~10% lower than what Jefferies analysts had been expecting. Intertek falls as much as 4.1% after Deutsche Bank cuts the stock to sell, saying many structural trends that underpinned growth for testing and inspection companies are reversing. Eurofins gains as much as 4.2% on an upgrade to hold. Atos gains as much as 11% after a report that Thales has the support of the French state in its effort to buy French tech company’s cybersecurity business. Ubisoft rises as much as 2.5% before paring gains, as Deutsche Bank initiates coverage with a buy rating, saying there’s “good scope” to beat revenue and margins expectations for fiscal 2024 and 2025. As noted above, the latest let of European PMIs were dismal, dropping across the board and all (except the UK) missing expectations: Euro Area Composite PMI (June, Flash): 51.9, consensus 54.0, last 54.8. Euro Area Manufacturing PMI (June, Flash): 52.0,  consensus 53.8, last 54.6. Euro Area Services PMI (June, Flash): 52.8, consensus 55.5, last 56.1. Germany Composite PMI (June, Flash): 51.3, consensus 53.0, last 53.7. France Composite PMI (June, Flash): 52.8, consensus 55.9, last 57.0. UK Composite PMI (June, Flash): 53.1, consensus 52.4, last 53.1. Earlier in the session, Asian stocks edged higher, with an improving outlook in China offering support even as the prospect of a global downturn weighed on some export-reliant markets. The MSCI Asia Pacific Index was up 0.2% with China’s internet giants and automakers contributing to the gains. South Korea and Taiwan, the two tech-heavy markets that have seen foreigners flee amid rising global rates, fell more than 1%. Traders digested Federal Reserve Chair Jerome Powell’s Wednesday comments that steep rate increases could trigger a US recession. China stocks were the region’s best performers, extending a recent trend, as President Xi Jinping pledged to meet economic targets for the year.  Hong Kong stocks gained after a report that the city’s incoming leader is working on a strategy to reopen its borders. Japanese stocks were little changed. “We’re sort of in a bottoming out phase here in Asia, where China is going to eventually support us again,” Robeco Asia-Pacific Chief Investment Officer Arnout van Rijn said in a Bloomberg TV interview. “The rest of Asia, with its better macroeconomic policies and lower interest rates, should at least outperform a weaker global market.” The Fed’s recent rate hike and comments have been especially hard on growth shares, with a gauge of Asia’s tech stocks falling to its lowest level since September 2020. China’s stocks have outperformed the broader region amid hopes for continued fiscal and monetary support. Japanese equities struggled for direction as investors worried over Federal Reserve Chair Jerome Powell’s comments on the risks of a recession. The Topix closed down les than 0.1% at 1,851.74, while the Nikkei advanced 0.1% to 26,171.25. Out of 2,170 shares in the index, 1,295 rose and 775 fell, while 100 were unchanged. “We’re in a very difficult phase,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management. “The market is still focused on what will happen to prices in the US and whether the economy can cope with a larger interest rate hike.”  Indian shares rose to mark their third day of gains in four after a retreat in crude oil prices eased concerns about vehicle demand in Asia’s third-biggest economy. Maruti Suzuki India Ltd. and Mahindra & Mahindra Ltd. were among the top gainers on the S&P BSE Sensex, which climbed 0.9% to close at 52,265.72 in Mumbai. The NSE Nifty 50 Index rose by an equal measure. Both indexes have risen for three of four sessions this week. All but two of the 19 sub-sector gauges compiled by BSE Ltd. advanced, led by auto companies.  Regional peers were mixed after Federal Reserve Chair Jerome Powell acknowledged the risk of a recession. West Texas Intermediate sank toward $104 a barrel after closing at a six-week low on Wednesday. Tata Consultancy contributed the most to the Sensex’s gains, increasing 2.7%. Out of 30 shares in the index, 27 rose and 3 fell. In rates, Treasury futures traded above Wednesday’s highs after tracking steeper gains for bunds sparked by weaker-than-expected euro-zone growth data, before fading much of the move. US yields richer by 3bp-5bp across the curve led by belly, richening the 2s5s10s fly by 3.5bp on the day; 10-year richer by ~3bp at 3.125% vs 16bp slide for German 10-year, widening spread ot ~165bp. Elevated recession risk put German 10-year yields on track for their biggest decline in more than three months. US auctions include $18b 5-year TIPS reopening at 1pm ET; ahead of the sale 5-year breakeven inflation is ~2.75%, near lowest level since January. Focal points of US session include Fed Chair Powell’s second day of congressional testimony and manufacturing survey data. Bunds futures rally, trading over a 300 tick range in high volumes before stalling close to 148.00. Yield curves bull steepen aggressively. German 2y yields crater over 20bps near 0.82%, trading 10bps richer to gilts and ~15bps richer to USTs. Peripheral spreads widen with short-end Portugal underperforming. In FX, Bloomberg dollar spot index rose 0.3% as the EUR tumbled on poor PMI data. The yen extended its rise as comments from an ex-policy official spurred bets that the Bank of Japan may intervene to halt the currency’s slide. Japan’s currency gained as much as 0.8% after Takehiko Nakao, the former head of foreign exchange policy at the finance ministry, said the possibility of the authorities intervening directly in foreign-exchange markets can’t be ruled out. Sterling eased against a broadly stronger dollar as a slide in global share prices prompted investors to sell riskier assets. Markets await UK PMI data, which is expected to show a drop in manufacturing and services sectors, adding to signs of a slowing economy. In commodities, oil dipped initially in early trading before paring the entire loss, Brent crude back above $111 a barrel. Most base metals are trade lower: LME copper drops ~2%, LME tin underperforms declining over 8%. Spot gold drifts lower near $1,830/oz. Bitcoin is firmer overall but continues to pivot the USD 20k mark and has struggled to gain any real traction during brief forays either side. Looking to the day ahead now, and the main data highlight will be the rest of the flash PMIs for June, along with the US weekly initial jobless claims, the Q1 current account balance, and the Kansas City Fed’s manufacturing activity for June. From central banks, Fed Chair Powell will be speaking before the House Financial Services Committee, the ECB will publish their Economic Bulletin, and we’ll hear from the ECB’s Nagel and Villeroy. Finally, EU leaders will be meeting in Brussels. Market Snapshot S&P 500 futures down 0.2% to 3,755.75 STOXX Europe 600 down 1.2% to 401.04 MXAP up 0.1% to 156.60 MXAPJ up 0.2% to 519.03 Nikkei little changed at 26,171.25 Topix little changed at 1,851.74 Hang Seng Index up 1.3% to 21,273.87 Shanghai Composite up 1.6% to 3,320.15 Sensex up 0.7% to 52,208.76 Australia S&P/ASX 200 up 0.3% to 6,528.45 Kospi down 1.2% to 2,314.32 German 10Y yield little changed at 1.47% Euro down 0.6% to $1.0503 Brent Futures down 1.7% to $109.80/bbl Gold spot down 0.2% to $1,834.49 U.S. Dollar Index up 0.46% to 104.67 Top Overnight News from Bloomberg Germany elevated the risk level in its national gas emergency plan to the second-highest “alarm” phase, following steep cuts in supplies from Russia. India’s central bank appears to have ramped up intervention in the forwards market to slow the rupee’s decline and preserve its hard-earned reserves. Russia faces yet another bond payment test this week, with just days remaining before it potentially slides into its first foreign default in a century. India’s central bank appears to have ramped up intervention in the forwards market to slow the rupee’s decline and preserve its hard-earned reserves. A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks were mostly positive after risk appetite slightly improved from the uninspiring lead from Wall St where stocks were choppy as tailwinds from lower oil prices and softer yields were offset by recession fears. ASX 200 was led higher by strength in real estate and consumer stocks, while Manufacturing PMI data remained in a firm expansion. Nikkei 225 swung between gains and losses with the index hampered by currency inflows. Hang Seng and Shanghai Comp. were kept afloat with auto manufacturers lifted after China’s cabinet pledged to boost the auto industry, while markets also shrugged off initial cautiousness brought on by COVID concerns after Shenzhen required PCR tests for anyone entering a public venue. Top Asian News China's Shenzhen is to require PCR tests for anyone entering a public venue, according to Bloomberg. US State Department warned about reconsidering travel to China due to COVID lockdown risks, according to Reuters. Former Japanese FX chief Nakao said continuing with YCC has many negative effects and that it is clear monetary policy is playing a role in the weak JPY, according to Bloomberg. European bourses are pressured overall, but well off lows going into the US session, Euro Stoxx 50 -0.2%; pressure was seen post-PMIs which missed expectations and featured pessimistic internal commentary. The sectoral breakdown is mixed as such while individual movers are affected by numerous broker moves. Stateside, futures are now firmer on the session, ES +0.4%, having shrugged off the French/German/EZ flash-PMI induced risk move ahead of Powell's second day of testimony. Top European News Majority of economists expect the ECB to hike the deposit rate by 25bps in July and 50bps in September, while the Deposit Rate is seen at 0.75% at year-end (prev. 0.25%) and there is a median 34% (prev. 30%) chance of a recession in 12 months, according to a Reuters poll. Bulgarian Turmoil Deepens as Premier Loses Confidence Vote Norway Steps Up Action With First Half-Point Hike Since 2002 Hedge Fund Trader Shah Struck Cum-Ex Trades With DekaBank UK June Flash Services PMI 53.4; Est 52.9 FX Poor preliminary Eurozone PMIs pull rug from under Euro; EUR/USD sub-1.0500 at worst, EUR/JPY under 142.00 vs almost 144.00 peak and EUR/GBP probes 0.8600 from circa 0.8641. Buck benefits indirectly alongside Yen as risk aversion intensifies on heightened recession anxiety; DXY towards top end of 104.780-050 range, USD/JPY vice-versa between 136.25-135.12 parameters. Pound pares some declines with assistance of solid UK services PMI, Cable keeps tabs on 1.2200 handle. Franc makes way for rebounding Dollar, Loonie, Aussie and Kiwi bear brunt of ongoing losses in underlying commodities; USD/CHF back above 0.9650 from sub-0.9600, USD/CAD hovering under 1.3000, AUD/USD capped into 0.6900 and NZD/USD around 0.6250. Norwegian Crown underpinned by bigger than expected 50bp Norges Bank hike and loftier rate path with caveats, EUR/NOK pivots 10.4800 vs near 10.5300 peak and 10.4400 trough. Central Banks Norges Bank Key Policy Rate (June-MPR): 1.25% vs. Exp. 1.00% (Prev. 0.75%); points to a 25bps hike in August (interim meeting). Click here for full details, reaction and newsquawk analysis. Norges Bank Governor Bache says cannot rule out increasing rates by more than 25bps in future meetings.   NBH keeps its one-week deposit rate unchanged at 7.25% Fixed Income Bunds and OATs front-run latest broad and big bond bounce as PMI miss consensus by some distance. Gilts and US Treasuries tag along with a lag post-solid UK services PMI and pre-US jobless claims, PMIs and Fed Chair Powell part 2. Bunds reach 147.89 from 144.81 low, Gilts 113.36 vs 111.93 and 10 year T-note 117-16 compared to 116-25+. Italy raises EUR 9.45bln with the BTP Italia bond, via Reuters. Commodities Crude complex remains pressured with specific newsflow limited and focused on known themes, WTI/Brent -0.5% having benefitted from the recent pick up in broader sentiment; note, the EIA release has been delayed. Private US Energy Inventory Data (bbls): Crude +5.7mln (exp. -0.6mln), Gasoline +1.2mln (exp. -0.5mln), Distillates -1.7mln (exp. +0.3mln), Cushing -0.4mln. US EIA said product releases scheduled this week will be delayed due to system issues, while it added the nat gas storage report will be released as scheduled on June 23rd but all other releases will be delayed, according to Reuters. Germany reportedly fears that a planned 'maintenance' shutdown of the Nordstream 1 pipeline could be used by Russia to shut off gas supplies completely to Germany which would threaten its efforts to build stores ahead of winter, according to FT. Germany declares Phase Two of Emergency Gas Plan due to supply cuts from Russia and high prices. Spot gold is back below the DMAs it briefly surmounted yesterday, downside in wake of post-PMI USD upside. US event Calendar 08:30: June Initial Jobless Claims, est. 226,000, prior 229,000 08:30: June Continuing Claims, est. 1.32m, prior 1.31m 08:30: 1Q Current Account Balance, est. -$275b, prior -$217.9b 09:45: June S&P Global US Services PMI, est. 53.2, prior 53.4 09:45: June S&P Global US Manufacturing PM, est. 56.0, prior 57.0 11:00: June Kansas City Fed Manf. Activity, est. 12, prior 23 Central Bank Speakers 10:00: Powell Testifies Before House Financial Services Panel DB's Jim Reid concludes the overnight wrap It’s been another eventful 24 hours in markets, with recession fears making a prominent return after Fed Chair Powell made some of his most pessimistic comments to date on whether the Fed would be able to successfully engineer a soft landing. Appearing before the Senate Banking Committee as part of the Fed’s semiannual Monetary Policy Report to Congress, Powell said that a recession was “a possibility”, whilst the soft landing the Fed is seeking will be “very challenging”, which is a long way from what the Fed were saying at the start of the year. Similarly, Powell said that the Fed “know we need to have restrictive policy, and that’s where we’re headed”, which is in line with what the Report itself said last week, in that the FOMC’s price stability commitment was “unconditional”. So a further reiteration that the Fed are prepared to keep hiking rates to bring down inflation, and an acknowledgement that there could well be a bumpy ride as they do so. However, even as Powell emphasised the Fed’s willingness to deal with inflation, those growing fears of a recession meant that Fed funds futures became more doubtful on the Fed’s ability to take policy into restrictive territory. For instance, the rate priced in by the December meeting actually came down -10.5bps yesterday, and since early last week we’ve seen nearly a full 25bp hike taken out of market pricing. The expected terminal rate also came down, with futures only seeing a peak of 3.61% in April 2023 before subsequent cuts. With investors becoming increasingly sceptical about the Fed taking policy far into restrictive territory, sovereign bonds rallied strongly yesterday, with yields on 10yr Treasuries down -11.9bps to 3.16%. That was driven by a decline in both real rates and inflation breakevens, and interestingly, the 10yr breakeven fell to its lowest level since Russia’s invasion of Ukraine began in late February yesterday, closing at 2.54%. In terms of the curve’s slope, the 2s10s steepened +2.2bps to 9.4bps, so still pretty close to inversion territory that has traditionally been a leading indicator of a recession. Meanwhile, if you look at the Fed’s preferred yield curve indicator that Powell has cited of the near-term forward spread (which looks at the 18m forward 3m yield minus the current 3m yield), that came down by -18.9bps yesterday to 176bps, which is the lowest it’s been in over 3 months, even if it still remains some way out of inversion territory. Equities put in a mixed performance against this backdrop, with the S&P 500 oscillating between gains and losses before ending the day down -0.13%. Energy stocks were a major laggard after oil prices fell to a one-month low, with Brent crude down -2.54% over yesterday’s session to close at $111.74/bbl. And this morning those losses have accelerated further, with Brent crude down -2.52% to trade at $108.92/bbl, which is now -13% beneath its intraday peak above $125/bbl seen last week. Over in Europe the tone was even more negative, with the major indices including the STOXX 600 (-0.70%) and the DAX (-1.11%) all seeing noticeable declines. That coincided with growing fears on the energy side, and Germany’s economy minister Habeck said yesterday that “we must assume that Putin is ready to reduce the gas flow further”. Natural gas futures in Europe (+1.28%) hit a 3-month high against that backdrop, and this is only set to become more of an issue as we move closer towards the colder months of the year. Staying on Europe, there was a similar rally in sovereign bonds to the US, with yields on 10yr bunds (-13.6bps) coming down from their post-2014 high on Tuesday. That was echoed elsewhere, whilst a fresh narrowing in peripheral spreads saw the gap between Italian 10yr yields over bunds reach their tightest in nearly a month, with a -2.0bps move to 191bps. Over in credit though, growing fears of a recession led to a widening in spreads, and iTraxx Crossover widened +15.4bps after 3 consecutive moves tighter. Overnight in Asia, equities are similarly struggling to gain traction in light of those warnings about a US recession. Both the Nikkei (-0.33%) and the Kospi (-0.84%) have moved lower for a second consecutive session, although Chinese equities have put in a stronger performance, with the Shanghai Composite (+0.58%) and the CSI (+0.49%) both trading in positive territory with the Hang Seng (+0.96%) maintaining its morning gains. Outside of Asia, US equity futures have continued to move between gains and losses, but contracts on the S&P 500 (-0.23%) and NASDAQ 100 (-0.25%) are both pointing lower this morning. Moving on to economic data, it’s an eventful day ahead as we get the flash PMIs for June. But we’ve already had the numbers out of Japan, where the services PMI hit its highest since October 2013 at 54.2, whilst the composite reading also accelerated to 53.2, which is the highest since November. The numbers from Australia showed a modest decline in June however, with the flash composite PMI down three-tenths on May’s reading to a 5-month low of 52.6. Here in the UK, the main news yesterday came from the May CPI reading, where annual inflation rose to +9.1% in line with expectations. That’s the highest rate since March 1982, although core CPI did fall a bit more than expected to 5.9% (vs. 6.0% expected). Staying on the UK, there’s a couple of important political contests taking place in the form of two by-elections to the House of Commons as well. Both are in seats that had been won by the Conservatives at the last election, but where opposition parties are making a challenge, and represent an important test for Prime Minister Johnson’s authority, not least since he saw 41% of his party’s MPs vote no confidence in him at the start of the month. The one in Wakefield will be of particular interest, since that is a so-called “Red Wall” seat that Labour held for the entire post-war period before Johnson’s Conservatives gained it at the 2019 election. So an important bellwether as we move closer to the next election. Looking at yesterday’s other data, the European Commission’s preliminary consumer confidence indicator for the Euro Area in June unexpectedly fell to -23.6 (vs. -20.5 expected), which is its lowest level since April 2020 at the height of the initial wave of the Covid pandemic. Separately, we saw Canadian CPI surprise on the upside, with the annual number coming in at +7.7% in May (vs. +7.3% expected), which is the fastest since 1983. To the day ahead now, and the main data highlight will be the rest of the flash PMIs for June, along with the US weekly initial jobless claims, the Q1 current account balance, and the Kansas City Fed’s manufacturing activity for June. From central banks, Fed Chair Powell will be speaking before the House Financial Services Committee, the ECB will publish their Economic Bulletin, and we’ll hear from the ECB’s Nagel and Villeroy. Finally, EU leaders will be meeting in Brussels. Tyler Durden Thu, 06/23/2022 - 07:50.....»»

Category: blogSource: zerohedgeJun 23rd, 2022

Palo Alto Networks: Pioneering AI In Cybersecurity

Palo Alto Networks (NASDAQ:PANW) is a leader in the cybersecurity industry. It has significantly grown its revenues faster and higher than the industry’s 5-year average. The average revenue growth for companies in the cybersecurity industry is 10% per year, while PANW grows at a rate of 25.4%. The business also has impressive projects in the […] Palo Alto Networks (NASDAQ:PANW) is a leader in the cybersecurity industry. It has significantly grown its revenues faster and higher than the industry’s 5-year average. The average revenue growth for companies in the cybersecurity industry is 10% per year, while PANW grows at a rate of 25.4%. The business also has impressive projects in the pipeline such as its Cortex Extended Security Intelligence & Automation Management (XSIAM) platform to lead it into the future of cloud security. Its recent financial performance is also something that investors should take note of. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Palo Alto Networks Q3’22 Results Palo Alto Networks continues to build on its success story with a strong Q3 this year. The business managed to boost its total revenue as well as Non-GAAP net income. Total revenue grew 29% YoY to $1.4B up from $1.1B in Q3 last year. Non-GAAP net income grew 38.42% to $193.1M from $139.5M. This boost in revenues and net income was attributable to the strong cybersecurity growth trends seen in the industry. While it was not stated by the company directly, the war in Ukraine and other geopolitical conflicts are tailwinds for Palo Alto Networks. The US government issued alerts to businesses that they should expect a higher than the average number of cyberattacks by criminal and state-backed groups as retaliation for aiding Ukraine in the war. This means that US businesses are firmly in the crosshairs of hacker groups for the foreseeable future, and the frequency and severity of attacks are likely to only increase moving forward. With 33% of Palo Alto Network’s revenue coming from the Americas region and being propelled by these tailwinds, the company felt confident in issuing the following guidance. For Q4 this year, the company expects revenue to grow between 25% to 27%, bringing it in the range of $1.53B to $1.55B. The company also expects its non-GAAP income per share to increase up to $2.29. Palo Alto Network’s XSIAM Platform The company’s XSIAM is an autonomous security platform to accelerate threat response times. XSIAM is the company’s draw card in the cybersecurity space and gives it a clear competitive advantage. As the first cybersecurity platform to use artificial intelligence, XSIAM, leverages massive amounts of data and inputs into the system to combat pervasive and sophisticated attacks on its users. Using these processes, XSIAM can reduce the time to resolution of an attack to less than a minute. The platform is currently being piloted with a handful of design partners and we could expect a public release as soon as the end of this year. Palo Alto Networks Technical Analysis PANW's stock price is currently down 14.82% and its struggling to maintain its share price. This is despite growing revenues and earnings YoY, which signals a worsening in consumer sentiment across the board, and not just with this stock individually. It currently trades significantly below the MarketBeat consensus price target of $628.56. With the macro tailwinds of the war in Ukraine and the rising severity of cyber attacks, the company looks set to enjoy strong demand for its products and could therefore make up some lost ground with its earnings reports. As it stands now though, the stock is currently in a downwards trend, and has more downside potential in store. A lower stock price is therefore expected in the short-term. Article by Matthew North, MarketBeat Updated on Jun 20, 2022, 3:25 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkJun 21st, 2022

Why You Should Hold on to Mastercard (MA) Stock for Now

Mastercard's (MA) growing footprint in emerging economies is a major tailwind. Mastercard Incorporated MA is well poised to grow on the back of strategic acquisitions, alliances and technology upgrades, along with product diversification and geographic expansion. Its massive cash flow generating ability bodes well. Also, rising demand for digital payment solutions is a huge positive.Mastercard — with a market cap of $313.3 billion — is a leading global payment solutions company that provides an array of services in support of credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities.Courtesy of solid prospects, this currently Zacks Rank #3 (Hold) stock is worth holding on to at the moment.Trend in EstimatesThe Zacks Consensus Estimate for Mastercard’s 2022 earnings is pegged at $10.52 per share, indicating a 25.2% rise from the year-ago reported figure. MA has witnessed 12 upward revisions in the past 60 days against none in the opposite direction. MA’s earnings beat estimates in each of the last four quarters, the average being 14.2%.Mastercard Incorporated Price and EPS Surprise Mastercard Incorporated price-eps-surprise | Mastercard Incorporated QuoteFurthermore, the consensus mark for revenues is $22.2 billion for 2022, indicating a 17.3% rise from the year-ago reported figure.Key DriversMastercard’s growing footprint in the emerging economies is a major tailwind. MA’s focus on incorporating more and more people in the digital and contactless solutions paves the way for long-term growth. It foresees tremendous growth opportunities from its Southeast Asia and Latin America operations. Also, it is growing its presence in Eastern Europe, the Middle East and Africa through multiple alliances, partnerships and acquisitions.The supply chains moving away from China created great opportunities for the Southeast Asian countries. The advantages of demographics and rapid digitization are playing major roles in accelerating growth in these regions. With its expanding footprint, Mastercard can witness ballooning revenues from this area.Over the past few months, Mastercard has created and launched numerous tools to support small and medium-sized businesses and merchants, globally. These are likely to propel MA’s transaction volumes. MA is also focused on improving security of its network to provide secured transaction options, enabling client retention. Last month, MA introduced the attack simulation and assessment platform Cyber Front to bolster the cybersecurity capabilities of businesses and governments.The ongoing recovery of the travel and tourism sector can be a major boon for Matercard. Mastercard Economics Institute’s analysis showed that at current rate, 1.5 billion more passengers will fly globally this year compared with the 2021 level. This trend can help boost MA’s payments, processed transactions and cross-border volumes. Last month, MA joined forces with India’s rapidly growing travel website Musafir to introduce cutting-edge payment products and solutions for enhancing travel bookings across the Middle East and North Africa regions.Key ConcernsThere are a few factors that are impeding the stock’s growth lately.Increasing costs are eating into its profits. Higher expenses, high rebates and incentives might drag MA's margins. In 2021, operating expenses escalated 21.9% from the prior-year comparable period’s figure. The metric further jumped 13% year over year in the first quarter of 2022. Also, rising competition in the payment market is concerning. Emerging payment companies with significant growth potential are capturing markets at a faster rate. Nevertheless, we believe that a systematic and strategic plan of action will drive its long-term growth.Stokcs to ConsiderSome better-ranked stocks in the businessservices space are Green Dot Corporation GDOT, Paysafe Limited PSFE and Accenture plc ACN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Headquartered in Texas City, TX, Green Dot is a pro-consumer bank holding company and personal banking provider. The Zacks Consensus Estimate for GDOT’s 2022 earnings indicates an 8.6% increase from the prior-year reported number. Green Dot’s earnings beat estimates in three of the last four quarters and missed the mark once, the average surprise being 20.5%.Based in London, Paysafe is a digital commerce solution provider for different types of businesses. The Zacks Consensus Estimate for PSFE’s second-quarter earnings indicates a 175% increase from the prior-year reported number.Dublin, Ireland-based Accenture is a global consulting services provider, with extensive relationships with the world's leading companies. Accenture’s bottom line for 2022 is expected to rise 22.7% from the prior-year reported figure. The stock has witnessed one upward estimate revision in the past 30 days and no movement in the opposite direction. ACN’s earnings beat estimates in each of the last four quarters, the average being 5.5%. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant 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 Accenture PLC (ACN): Free Stock Analysis Report Mastercard Incorporated (MA): Free Stock Analysis Report Green Dot Corporation (GDOT): Free Stock Analysis Report Paysafe Limited (PSFE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 16th, 2022

TD SYNNEX (SNX) Expands Security Offering With Alert Logic Deal

TD SYNNEX's (SNX) latest distribution agreement with the managed detection and response solution provider, Alert Logic by HelpSystems, is likely to enhance its security portfolio. TD SYNNEX SNX recently entered into a distribution agreement with the managed detection and response (“MDR”) solution provider, Alert Logic by HelpSystems. Per the deal, TD SYNNEX’s business partners and organizations worldwide will be able to purchase comprehensive MDR solutions from Alert Logic.Deal Enhances Security PortfolioAlert Logic is the only provider of MDR solutions that deliver comprehensive coverage for public clouds, software-as-a-service, on-premises and hybrid environments. The company’s MDR solution helps organizations minimize security risk exposure and effectively identify, analyze and respond to cyber threats before they cause disruptions.The latest distribution agreement with SNX will help Alert Logic expand its market reach. TD SYNNEX sells and distributes more than 30,000 technology products from more than 500 leading tech companies worldwide. Currently, the IT distributor and solutions aggregator for the IT ecosystem sells products to more than 20,000 resellers and retail customers in the United States, Canada and Japan.TD SYNNEX Corp. Price and Consensus TD SYNNEX Corp. price-consensus-chart | TD SYNNEX Corp. QuoteMeanwhile, the deal is likely to boost TD SYNNEX’s security portfolio and offer more agility to its business partners as their network and security needs continue to evolve. In December 2021, TD SYNNEX’s wholly owned subsidiary, Tech Data India, entered into a partnership agreement with the global cloud security leader, Zscaler ZS.Per the deal, TD SYNNEX’s business partners and organizations in India will be able to purchase security solutions from Zscaler’s leading security platform, Zero Trust Exchange, directly from Tech Data India. Zscaler’s Zero Trust Exchange is a purpose-built cloud platform that reduces risks in digital businesses by ensuring a safer digital transformation than traditional virtual private networks and firewalls.In November 2021, TD SYNNEX’s wholly owned subsidiary, DLT Solutions, entered into a distribution agreement with the leading provider of cyber, cloud and enterprise security solutions, Telos Corporation TLS. DLT Solutions is well-known as a premier reseller of software and hardware and a provider of professional services for the U.S. federal, state and local governments and the education market.The distribution agreement has enabled Telos to further expand its reach in the U.S. public sector market. Per the agreement, Telos solutions’ portfolio has been added to DLT Solutions’ channel ecosystem and selective federal-contract vehicles.TD SYNNEX Continues to Win Distribution DealsIt is remarkable that TD SYNNEX has been benefiting from consecutive deal wins within a few months of its formation, following the merger of TD SYNNEX and Tech Data Corporation in the first week of September 2021.The merged company won its first distribution contract from Palo Alto Networks PANW in September. Per the agreement, TD SYNNEX will distribute Palo Alto Networks’ cybersecurity solutions among India & SAARC-based customers.In the same month, SNX signed an agreement with a leading Israeli software provider, Indeni, to leverage automated network security solutions.In October, TD SYNNEX signed a strategic distribution agreement with the network security and automation solutions provider, EfficientIP, which provided EfficientIP’s DDI and DNS Security solutions for its partner community of traditional value-added resellers, managed service providers and system integrators. The deal expanded the company’s technology portfolio and reinforced EfficientIP’s position in the DDI market.Currently, TD SYNNEX, Zscaler, Telos and Palo Alto Networks each carry a Zacks Rank #3 (Hold). Shares of SNX, ZS, TLS and PANW have plunged 14.7%, 53.8%, 46.1% and 12.5%, respectively, year to date. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant 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 TD SYNNEX Corp. (SNX): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Zscaler, Inc. (ZS): Free Stock Analysis Report Telos Corporation (TLS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 16th, 2022

Jacobs (J) Wins Contract Extension, Backs Net-Zero Transition

Jacobs (J) to assist EDF in its intention of a net-zero economy. Jacobs Engineering Group Inc. J shares inched up 0.29% on Jun 15 after it announced a two-year extension (April 2022 to March 2024) for the existing Stations Services Agreement (SSA). EDF Nuclear Generation, the operator of the U.K.'s nuclear power plants, valued the contract extension at more than $3 million.Per the contract, Jacobs will be the prime contractor to deliver flagship projects. It will support the safe operation and maintenance of the advanced gas-cooled reactor (AGR) stations, which account for approximately 17% of the country's electricity output.Jacobs’ Energy, Security & Technology’s senior vice president, Karen Wiemelt, stated, "We will assist EDF in maximizing emission-free generation from these vital national assets for the remainder of their operating lives, supporting the transition to a net-zero economy, and follow-on transition toward defueling and decommissioning."Solid Project Execution to Drive GrowthJacobs is witnessing accelerated demand for infrastructure, water, environment, space, broadband, cybersecurity and life sciences consulting services. Efficient project execution has been a primary factor driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.At fiscal second quarter-end, it reported a backlog of $27.8 billion, up 8.7% year over year. This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, CMS accounted for $10.5 billion, up from $9.78 billion reported a year ago. The upside provided strong visibility into the base business. P&PS backlog at quarter-end was $16.96 billion, up from $15.5 billion a year ago.Image Source: Zacks Investment ResearchAlthough J’s shares have underperformed the Zacks Engineering - R and D Services industry this year, 2022 earnings estimates have moved up in the past two months, reflecting 13.2% year-over-year growth. The trend is expected to continue in the near term, courtesy of its solid results for the first half of fiscal 2022.Zacks Rank & Key PicksCurrently, Jacobs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.KBR, Inc. KBR — currently carrying a Zacks Rank #2 (Buy) — provides professional services and technologies across the asset and program life-cycle within government services and hydrocarbons industries worldwide. Its mission-critical government services, high-end and differentiated government business work, strong margin performance, proprietary technology solutions and a significant increase in backlog (particularly in Government Solution) are expected to boost earnings for 2022.KBR’s 2022 earnings are likely to rise 3.7%. This Zacks Rank #3 company has seen a 2% upward estimate revision for 2022 earnings over the past 30 days.AECOM ACM — currently carrying a Zacks Rank #2 — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and those in environmental, energy and water businesses.AECOM’s expected earnings growth rate for 2022 is 21.6%. The consensus mark for its 2022 earnings has moved up to $3.43 per share from $3.40 in the past 60 days.Sterling Construction Company, Inc. STRL — a Zacks Rank #2 company — has been benefiting from broad-based growth across the E-Infrastructure, Building and Transportation solutions segments.The consensus mark for Sterling’s 2022 earnings rose to $2.61 per share from $2.60 in the past 30 days. This suggests 7.9% year-over-year growth. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant 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 AECOM (ACM): Free Stock Analysis Report KBR, Inc. (KBR): Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report Jacobs Engineering Group Inc. (J): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 16th, 2022

Jacobs (J) Wins Contract to Improve ATL Operations, Aids P&PS

Jacobs' (J) expertise will develop a strategy for the operations, maintenance, modernization and future growth of ATL. Jacobs Engineering Group Inc. J won a contract from Hartsfield-Jackson Atlanta International Airport (ATL) to develop a strategy for the operations, maintenance, modernization and future growth of physical assets throughout the latter’s 4,700-acre campus.Per the deal, Jacobs will assess the Department of Aviation's current asset management program, develop strategies, processes and asset management plans, evaluate the condition of facilities and provide support and training for enterprise asset management systems. Its consulting team will bring measurable improvements in operational performance, sustainability, risk mitigation resiliency, investment planning and total cost of ownership.Jacobs’ executive vice president and president of People & Places Solutions, Patrick Hill, stated, "We'll consult with ATL to develop a strategic asset management program that supports their vision and delivers on our commitment to provide custom strategic solutions that leverage our deep domain knowledge."Solid Project Execution to Drive GrowthJacobs is witnessing accelerated demand for infrastructure, water, environment, space, broadband, cybersecurity and life sciences consulting services. Efficient project execution has been a primary factor driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.At fiscal second quarter-end, it reported a backlog of $27.8 billion, up 8.7% year over year. This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, CMS accounted for $10.5 billion, up from $9.78 billion reported a year ago, which provided strong visibility into the base business. P&PS backlog at quarter-end was $16.96 billion, up from $15.5 billion a year ago.Image Source: Zacks Investment ResearchAlthough J’s shares have underperformed the Zacks Engineering - R and D Services industry this year, 2022 earnings estimates have moved up in the past two months, reflecting 13.2% year over year growth. The trend is expected to continue in the near term, courtesy of its solid results for the first half of fiscal 2022.Zacks Rank & Key PicksCurrently, Jacobs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.KBR, Inc. KBR — currently carrying a Zacks Rank #2 (Buy) — provides professional services and technologies across the asset and program life-cycle within government services and hydrocarbons industries worldwide. Its mission-critical government services, high-end and differentiated government business work, strong margin performance, proprietary technology solutions and a significant increase in backlog (particularly in Government Solution) are expected to boost earnings for 2022.KBR’s 2022 earnings are likely to rise 3.7%. This Zacks Rank #3 company has seen a 2% upward estimate revision for 2022 earnings over the past 30 days.AECOM ACM — currently carrying a Zacks Rank #2 — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and those in environmental, energy and water businesses.AECOM’s expected earnings growth rate for 2022 is 21.6%. The consensus mark for its 2022 earnings has moved up to $3.43 per share from $3.40 over the past 60 days.Sterling Construction Company, Inc. STRL — a Zacks Rank #2 company — has been benefiting from broad-based growth across the E-Infrastructure, Building and Transportation solutions segments.The consensus mark for Sterling’s 2022 earnings has rose to $2.61 per share from $2.60 in the past 30 days. This suggests 7.9% year-over-year growth. Zacks' Top Picks to Cash in on Electric Vehicles Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investorsSee 5 EV Stocks With Extreme Upside Potential >>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 AECOM (ACM): Free Stock Analysis Report KBR, Inc. (KBR): Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report Jacobs Engineering Group Inc. (J): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 15th, 2022

AON to Divest eDiscovery to TCDI, To Focus on Core Operations

AON's cyber solutions business will continue its operations and retain its focus on commercial partnerships. Aon plc AON recently agreed to divest its eDiscovery practice to a private legal services and cybersecurity provider TCDI. AON’s cyber solutions business will continue its operations and focus on commercial partnerships.The deal is expected to close approximately in a month. After completing the divestment, AON is expected to maintain its commercial relationship with TCDI focusing on the clients’ needs. The latest divestiture highlights that AON’s management does not shy away from unloading less profitable assets to boost its margins.AON has been selling off non-core operations for years to streamline its business. During the 2011-2021 period, Aon completed 123 divestments for around $5.7 billion. The sale of businesses allows it to focus on more profitable operations, and generate a higher return on equity. AON’s trailing 12-month return on equity (ROE) of 119.5% compares favorably with the industry’s ROE of 29.6%, reflecting its efficiency in utilizing its shareholders’ funds.The proceeds from the divestment can also help AON reduce its leverage. Its total debt to total capital was 88.9% at the March-quarter-end, higher than the industry’s average of 50.5%. Aon exited the first quarter with cash and cash equivalents of $595 million, much lower than its long-term debt of $9,685 million, which jumped from $8,228 million at 2021 end. Short-term debt and the current portion of the long-term debt amounted to $599 million at the first quarter-end.The deal is expected to benefit TCDI by adding capabilities like information governance and others to its eDiscovery portfolio. It will also bring Aon's NOMAD mobile processing platform plus PHI/PII detection and post-data-breach support tools to its kitty, thus boosting its expertise. The acquisition will likely extend the acquirer’s geographic reach in the United Kingdom.Price PerformanceAON’s shares have inched up 3.9% in the past year against the 8.5% fall of the industry.Image Source: Zacks Investment ResearchZacks Rank & Key PicksAON currently has a Zacks Rank #3 (Hold). Some better-ranked players in the Finance space are Ryan Specialty Group Holdings, Inc. RYAN, Arthur J. Gallagher & Co. AJG, and AMERISAFE, Inc. AMSF, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Based in Chicago, IL, Ryan Specialty provides numerous specialty products and solutions for insurance brokers, agents and others. RYAN acts as a wholesale broker and managing underwriter to provide risk management services. The Zacks Consensus Estimate for 2022 bottom line is expected to jump 13% to $1.22 per share from the year-ago actuals.Headquartered in Rolling Meadows, IL, Arthur J. Gallagher provides insurance brokerage and consulting services, and third-party claims settlement and administration services in the United States and internationally. The Zacks Consensus Estimate for AJG’s 2022 earnings per share indicates a rise of 42.2% from the prior-year reading. The stock has witnessed four upward estimate revisions in the past 60 days compared with none in the opposite direction.AMERISAFE, headquartered in DeRidder, LA, is a specialty provider of workers’ compensation insurance, which markets and underwrites its insurance through subsidiaries. The consensus estimate for 2022 bottom line of AMSF has increased 3.9% in the past 60 days. During this period, the stock has witnessed one upward estimate revision and no downward movement. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See 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 AMERISAFE, Inc. (AMSF): Free Stock Analysis Report Aon plc (AON): Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report Ryan Specialty Holdings Inc. (RYAN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 11th, 2022

These 3 Tech Giants Have Made Big Acquisitions in 2022

Acquisitions allow companies to get their hands on more expertise and, of course, technology - providing them with the flexibility needed to innovate continuously. Acquisitions are always an exciting announcement that investors can receive. It’s generally a good sign whenever a company has enough capital to acquire a company and transform it into a significant part of its underlying business.Primarily, throughout time, industries change. If companies don’t jump on board with these innovative changes, things can go south quickly. Acquisitions allow companies to get their hands on more expertise and, of course, technology – providing them with the flexibility needed to innovate continuously.Through acquisitions, companies become much more extensive – and bigger is better. Primarily, larger companies benefit from additional cost savings and other advantages that smaller companies don’t yet possess.There have been some exciting acquisitions so far throughout 2022, and three of them have involved significant tech giants, including Microsoft MSFT, Advanced Micro Devices AMD, and Alphabet GOOGL.The year-to-date chart below shows the share performance of all three companies while blending in the S&P 500 for a benchmark.Image Source: Zacks Investment ResearchLet’s take a deeper dive into each acquisition and analyze how these tech giants stand to benefit from the moves.MicrosoftMicrosoft MSFT acquired Activision Blizzard ATVI for $68.7 billion in January to bolster its stance in the video game industry across all platforms. Activision Blizzard is a leader in video game development and an interactive entertainment content publisher.ATVI is a giant within console gaming and has some of the most highly-respected franchises of all time, including Call of Duty, Crash Bandicoot, World of Warcraft, Diablo, Overwatch, and Spyro.It was the largest acquisition deal in the video game industry’s history – a fascinating development.Microsoft intends to publish all Activision Blizzard titles onto their Xbox Game Pass, a service that gamers have widely accepted and has been a major success.Xbox’s Game Pass allows gamers unlimited access to a library stacked full of games for a low flat rate of $9.99 each month and is the first of its kind.Xbox’s Game Pass subscriber count exceeded 25 million in January 2022, and Activision Blizzard titles currently have around 400 million monthly active players – providing a significant source of recurring, sticky revenue.Providing higher ease of access to the most iconic gaming franchises in history at a low price will significantly propel Microsoft’s growth within gaming and further boost the top line.Microsoft Corporation Price, Consensus and EPS Surprise Microsoft Corporation price-consensus-eps-surprise-chart | Microsoft Corporation QuoteAdvanced Micro DevicesLooking to expand its Data Center Solution capabilities, Advanced Micro Devices AMD acquired Pensando, a developer of new edge services and programmable processors for enterprise and cloud computing. The acquisition is valued at $1.9 billion and is expected to close in 2022.Pensando’s products have already been deployed at scale across cloud and enterprise customers, an absolutely stacked list including Goldman Sachs GS, IBM Cloud IBM, Microsoft Azure MSFT, and Oracle Cloud ORCL.Pensando states that its robust programmable packet processor provides between 8x and 13x better performance than its rivals’ similar products.Its processor controls how workloads move through hardware infrastructure, bouncing tasks off the CPU whenever able, considerably increasing efficiency.The acquisition comes at a time when Intel INTC and Nvidia NVDA have both expanded their portfolios; Intel has its infrastructure processing unit (IPU) and SmartNICs (network interface cards), and Nvidia has Bluefield DPUs (data processing units) and DPU-based SmartNics.However, these two companies don’t have the system software Pensando provides, giving AMD an edge over two of its largest competitors – an angle that AMD likely saw.Advanced Micro Devices, Inc. Price, Consensus and EPS Surprise Advanced Micro Devices, Inc. price-consensus-eps-surprise-chart | Advanced Micro Devices, Inc. QuoteAlphabetIn early March of this year, Alphabet GOOGL announced plans to acquire Mandiant MNDT for a price tag of $5.4 billion. Mandiant is a dynamic cyber defense and response solutions provider, utilizing its Mandiant Advantage software as a service cloud-based platform.The company will join forces with Google’s Cloud business – an obvious attempt to capitalize on the booming cloud computing market.GOOGL states that organizations face cybersecurity challenges that have accelerated in frequency, severity, and diversity, creating a global security imperative.To the company, the cloud represents “a new way to change the security paradigm by helping organizations address and protect themselves against entire classes of cyber threats, while also rapidly accelerating digital transformation.”The acquisition is expected to complement Google Cloud’s strengths in security. GOOGL plans to enhance its security offerings with the deal, delivering an end-to-end security operations suite with more excellent capabilities to support cloud customers.Combining Mandiant’s robust security with GOOGL’s cloud business will assist enterprises across the globe in staying protected throughout all stages of the security’s life cycle.The company’s cloud computing has already been a significant success – Google Cloud raked in $6.4 billion in revenue in its latest quarter, displaying a sizable 41% growth from the year-ago quarter. Since FY17, Google Cloud revenue has grown by a massive 375%.Alphabet Inc. Price, Consensus and EPS Surprise Alphabet Inc. price-consensus-eps-surprise-chart | Alphabet Inc. QuoteBottom LineAcquisitions are always a thrilling announcement that investors can get excited over. Generally, acquisitions are made to expand a business and further fuel future growth.All three companies above have made a big splash within their respective acquisitions and look to turn them into big-time winners moving forward. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See 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 The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report International Business Machines Corporation (IBM): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Mandiant, Inc. (MNDT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research 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.....»»

Category: topSource: zacksJun 11th, 2022

Mastercard (MA) Eases Fund Transfer in Italy With New Service

Mastercard (MA) launches Mastercard Send in Italy by teaming up with Checkout.com and Young Platform. The MA service paves the way for instant payments and easy fund transfer through digital currency wallets. Mastercard Incorporated MA recently partnered with the global payments solution provider Checkout.com and the cryptocurrency exchange Young Platform to introduce Mastercard Send (an innovative personal payments service) in Italy.Mastercard Send, which can already be availed in over 100 markets across the globe, will now benefit Italian consumers in possession of digital currency wallets as a result of the nationwide launch of the MA service. Consumers can utilize any banking app, payment portal or gig platform to conduct instant and hassle-free payments with the help of Mastercard Send. Even funds can be transferred to Mastercard-branded credit, debit and prepaid cards within seconds from digital currency wallets, and that too, in an easy and secure manner. All this has been made possible through the launch of Mastercard Send.According to management of Checkout.com, Young Platform will play the role of a use case to showcase the strength of the Mastercard Send solution and, in turn, the cryptocurrency exchange platform will benefit from the security, convenience and accessibility offered by the widespread global network of MA. The integration of Mastercard Send with Checkout.com paves the way for Young Platform to expand the withdrawal options for its consumers, who can now receive near real-time payments on their cards and dispense those at any Mastercard point-of-sale locations at any corner of the world.Moves similar to the latest one reflect Mastercard’s sincere efforts to boost its multi-rail strategy. As part of the strategy, it strives to extend increased speed, choice and convenience throughout the world while concurrently assuring the safety and control of transactions as well. The recent launch forms part of MA’s endeavor to bring more and more people under the ambit of a growing digital economy. Enhanced digital payment solutions, which result in secured and seamless transactions, have been complementing this endeavor.The help extended to Young Platform users in the form of an easy receipt and transfer of funds from their cards highlights Mastercard’s focus on minimizing hurdles encountered in the process of trading crypto by millions of Italian consumers. MA has been striving hard to bridge the gap between consumers and cryptocurrencies, as evident from the launch of cybersecurity protection solutions for the seamless operation of the crypto environment.Unveiling Mastercard Send in Italy at this moment is indicative of Mastercard’s efforts to accelerate digital growth in the country, where consumers have been embracing digital means widely. The same sentiment has been highlighted by the Mastercard New Payments Index 2022, which states more than half of Italians surveyed increased the utilization of digital assets (such as cryptocurrencies) in 2021, while 60% of them remain optimistic about using more such digital assets in the days ahead. A solid demand thereby remains in place among the country’s people for digital upgradations in tools and channels, resulting in a secure and instant transfer of funds on a global basis, which demonstrates the timeliness of the latest Mastercard Send expansion in Italy.Shares of Mastercard have gained 1.1% year to date against the industry’s decline of 9.2%. MA currently carries a Zacks Rank #3 (Hold).Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks in the Business Services space include Huron Consulting Group Inc. HURN, Automatic Data Processing, Inc. ADP and FTI Consulting, Inc. FCN. While Huron Consulting currently flaunts a Zacks Rank #1 (Strong Buy), Automatic Data Processing and FTI Consulting carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The bottom line of Huron Consulting outpaced estimates in each of the last four quarters, the average surprise being 29.97%. The Zacks Consensus Estimate for HURN’s 2022 earnings suggests an improvement of 22.6% from the year-ago reported figure. The same for revenues suggests year-over-year growth of 13.5%. The consensus mark for Huron Consulting’s 2022 earnings has moved 5.3% north in the past 60 days.Automatic Data Processing’s earnings outpaced estimates in three of the trailing four quarters and missed once, the average surprise being 6.23%. The Zacks Consensus Estimate for ADP’s 2022 earnings suggests an improvement of 15.8% from the year-ago reported figure. The same for revenues suggests growth of 9.5%. The consensus mark for Automatic Data Processing’s 2022 earnings has moved 2.2% north in the past 60 days.The bottom line of FTI Consulting outpaced estimates in each of the last four quarters, the average surprise being 24.40%. The Zacks Consensus Estimate for FCN’s 2022 earnings suggests an improvement of 1.6% from the year-ago reported figure. The same for revenues suggests growth of 6.2% from a year ago. The consensus mark for FTI Consulting’s 2022 earnings has moved 0.9% north in the past 60 days.Shares of Huron Consulting and FTI Consulting have gained 17% and 6.3%, respectively, year to date. Meanwhile, Automatic Data Processing stock has lost 14.1% in the same time frame.  Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See 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 Mastercard Incorporated (MA): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report FTI Consulting, Inc. (FCN): Free Stock Analysis Report Huron Consulting Group Inc. (HURN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 10th, 2022

Verizon CEO on how to boost your cybersecurity amid surging data breaches

Verizon Business CEO Tami Erwin on creating a framework to manage cybersecurity as ransomware attacks see an increase greater than the last five years combined......»»

Category: topSource: foxnewsJun 7th, 2022

Futures Slide As Sell-The-Rippers Emerge, Encouraged By Target"s Dismal Update

Futures Slide As Sell-The-Rippers Emerge, Encouraged By Target's Dismal Update It was a relatively quiet session for stocks with futures trading modestly lower overnight as yields eased their Monday surge and when the biggest news was Australia's unexpected 50bps rate hike (double consensus) before all hell broke loose at 7am, when Target cut guidance for the second time in two weeks due to the infamous bullwhip effect we had warned about just a few weeks ago, sending TGT stock crashing more than 9% and encouraging the cold risk-off wind that pushed S&P futures 0.8% lower to session lows around 4,080... ... while Nasdaq 100 futures fell 1% as Treasury yields hovered around 3.05%, their highest in nearly a month. Europe's Stoxx Europe 600 Index slipped as telecom and technology stocks weighed. In the premarket, shares of Target tumbled as much as 10% after the retailer cut its profit outlook for the second time in three weeks amid an inventory surplus. The news sent retailers such as Walmart and Costco also sliding premarket; WMT was down as much as 4.3% ahead of the bell, COST -2.9%, Kroger -1.3%, Macy’s -3%. Among other notable movers, cryptocurrency-exposed stocks tumbled in premarket trading as Bitcoin slid back below $30,000. Meanwhile Kohl’s shares rose 12% in premarket trading as the company holds exclusive talks with Franchise Group regarding a deal that would value the retail chain at about $8 billion. Here are some other notable premarket movers: Cryptocurrency-exposed stocks decline in premarket trading as Bitcoin slides back below $30,000, with another attempt at upward momentum losing traction amid risk-off markets. Riot Blockchain (RIOT US) -5%, Marathon Digital (MARA US) -3.7%. Kohl’s (KSS US) shares jump 12% in US premarket trading as the company holds exclusive talks with Franchise Group regarding a deal that would value the retail chain at about $8 billion. Peloton’s (PTON US) shares rose 1.4% in US after-hours trading on Monday. Former vice president of Amazon Web Services Liz Coddingtonis “well-positioned” to help Peloton in its next stage of growing subscribers, Citi says, after the exercise machine maker appointed Coddington CFO. Gitlab (GTLB US) shares rose 9.8% in postmarket trading on Monday after the software company’s first-quarter report. HealthEquity (HQY US) shares climbed 5.8% in postmarket Monday. It boosted its revenue guidance for the full year as its results beat the average analyst estimate in what RBC analyst Sean Dodgesaid could be the start of a years-long upside driven by rising interest rates. ProFrac (PFHC US) shares could be active after analysts initiated coverage of oil services firm with three overweight ratings and one buy, with both Piper Sandler and Morgan Stanley positive on the company’s valuation and vertical business model. Veru Inc. (VERU US) gained 2.8% in postmarket trading after Tang Capital Partners LPdisclosed a 5.2% passive stake in the firm. On Monday, investors once again sold the rip, showing their reluctance to take on risk amid fears policy to subdue inflation will go overboard and kill off economic recoveries, rather than cooling off price pressures in a so-called soft landing. “This debate around ‘are we going to see a recession, are we going to see a soft landing?’ -- that’s really keeping markets relatively range bound,” Laura Cooper, a senior investment strategist at BlackRock Inc., said in an interview with Bloomberg TV. “We likely need to see a dovish pivot from policymakers to really have conviction that we’re going to a sustained rally in equities." Rising bond yields are adding to worries about risks to economic growth as central banks ratchet up policy tightening. US benchmark Treasury yields stabilized near 3%, a psychological threshold that may burden new supply due this week before crucial inflation data. “The combo of declining growth, rising rates and falling liquidity is pretty ugly for equities,” said James Athey, investment director at abrdn. “Reluctant as investors in those market are to admit, the outlook for multiples and earnings isn’t great and is probably getting worse.” Meanwhile, Friday's CPI reading for May will be crucial for clues on the Federal Reserve’s pace of monetary tightening, especially the clothing and apparel component where we expect prices to plunge amid the inventory liquidation. Strong hiring data last week already cleared the way for the central bank to remain aggressive in its fight against inflation by raising interest rates. Higher rates particularly hurt growth sectors that are valued on future profits, like tech.  In Europe, the benchmark Stoxx 600 Index also resumed losses on Tuesday led by drops of more than 1% in technology and travel shares. European equities traded poorly with several indexes giving back over half of Monday’s gains. Euro Stoxx 50 drops as much as 0.8%, cash DAX underperforming at the margin. Tech, retail and telecoms are the weakest Stoxx 600 sectors. FTSE 100 trades flat.  The European Central Bank on Thursday is set to end trillions of euros of asset purchases and cement a path to exiting eight years of negative interest rates. Earlier in the session, Asian stocks declined with chipmakers coming under pressure as traders reassessed the outlook for demand, offsetting Japan’s boost from a weak yen. The MSCI Asia Pacific Index dropped as much as 1.2%, with TSMC and Samsung Electronics the biggest drags. Most sectors traded lower, while some Chinese internet giants and Japanese automakers were among the notable gainers. Tech hardware stocks fell as worries about demand for handsets and other gadgets outweighed hopes for a recovery in China on the easing of Covid lockdowns. South Korean equities dropped as the market reopened after a holiday, while shares in Australia slumped after the Reserve Bank of Australia blindsided the market with an outsized hike to combat rising costs. The RBA responded to price pressures with its biggest rate increase in 22 years -- predicted by just three of 29 economists -- and indicated it remained committed to “doing what is necessary” to rein in inflationary pressures. There are persistent worries about demand for semiconductors as the market consensus is that a demand slowdown for handsets and other consumer electronics is highly likely,” said Lee Jinwoo, chief strategist at Meritz Securities in Seoul. Most Chinese tech stocks finished lower in volatile trading after climbing Monday following a report that regulators are concluding their investigation of transport firm Didi. Japanese shares rose as the yen weakened to its lowest level in two decades, boosting exporters such as Toyota and Honda. Read: Yen Slides to Two-Decade Low, Reigniting Focus on Intervention Asian stocks are down in June after posting their first monthly gain in five months in May. Traders will be assessing the inflation and growth outlook ahead of the Federal Reserve’s meeting next week while monitoring the state of Covid restrictions in China.  “Stock market valuations have de-rated quite significantly and from our perspective, there is a lot of the bad news largely in the price. Possibly there’s more to go,” Chetan Seth, Asia Pacific equity strategist at Nomura Holdings said at a conference in Singapore In FX, Bloomberg dollar spot rises as much as 0.4% and the dollar was steady or higher against all of its Group-of-10 peers; NOK is the weakest G-10 performer. JPY softness extends, briefly trading at 133/USD. The yen extended its slump to a fresh 20- year low near 132.60/USD as BOJ’s Kuroda continued to emphasize persistent easing commitment. Senior Japanese government officials said they were closely watching currency markets with a sense of urgency Tuesday as they returned to a heightened state of alert following a renewed slide in the yen to fresh two-decade lows. The dollar’s steep rally to the 133 handle versus the yen and the Australian central bank’s biggest rate hike in 22 years make the case for long-volatility exposure in the major currencies and traders follow suit. The pound fell to an almost three-week low versus the greenback before paring losses to trade around $1.25. The gilt yield curve bull flattened. The euro was little changed, trading around $1.07. Bunds and European bonds reversed opening losses even as wagers earlier crossed half the way toward calling a historic half-point. In rates, treasuries swung from losses to gains, sending yields as much as 3bps lower as the yield curve flattened. Treasury futures rose led led by the long-end amid weakness in European stocks and S&P 500 futures.Bloomberg notes that gains were helped by block trade in 10-year note futures as cash yield eases back toward 3%. US yields were richer by nearly 3bp across long-end of the curve, flattening 2s10s, 5s30s by ~1bp; 10-year, down ~2bp to 3.02%, outperforms bunds slightly, while gilt is little changed. German bunds outperform, richening ~3bps from the 5y point out, gilts are relatively quiet. Peripheral spreads are slightly tighter to core, semi-core widens a touch. Australian bond yields soared and the Aussie briefly reversed a loss after the central bank surprised investors by raising its cash rate by 50 basis points -- the biggest increase in 22 years -- to 0.85%, a result predicted by just three of 29 economists. It also committed itself to “doing what is necessary” to rein in inflationary pressures. In commodities, crude futures drift higher with WTI near $120 and Brent back around $122. Spot gold adds ~$6 to near $1,847/oz. Base metals are in the red with LME nickel down over 3%. Bitcoin is pressured and back below the USD 30k mark and incrementally below last week's trough of USD 29.04k. Looking to the day ahead now, and data releases include German factory orders for April, the final UK services and composite PMI for May, as well as the US trade balance and consumer credit for April. Otherwise central bank speakers include the ECB’s Wunsch. Market Snapshot S&P 500 futures down 0.4% to 4,106.00 STOXX Europe 600 down 0.4% to 442.31 MXAP down 0.9% to 167.50 MXAPJ down 1.1% to 552.94 Nikkei up 0.1% to 27,943.95 Topix up 0.4% to 1,947.03 Hang Seng Index down 0.6% to 21,531.67 Shanghai Composite up 0.2% to 3,241.76 Sensex down 1.2% to 55,018.56 Australia S&P/ASX 200 down 1.5% to 7,095.74 Kospi down 1.7% to 2,626.34 Brent Futures up 0.3% to $119.88/bbl Gold spot up 0.1% to $1,843.79 U.S. Dollar Index up 0.10% to 102.54 German 10Y yield little changed at 1.30% Euro little changed at $1.0694 Top Overnight News The ECB will begin a new era of monetary policy this week as officials complete their pivot to confront the threat of inflation running out of control. Armed with new forecasts and with prices rising at a record pace, President Christine Lagarde and her colleagues will end trillions of euros of asset purchases and cement a path to exiting eight years of negative interest rates The yen has tumbled to a two-decade low against the dollar, caught in the crossfire between the two wildly different monetary policy regimes in Japan and the US. The Bank of Japan is pinning interest rates to zero in a bid to boost a sputtering economy and spur price growth, while the Federal Reserve is hiking furiously to beat back raging inflation Investors from Tokyo to New York are betting on further weakness in Japan’s currency, which is already wallowing at a two-decade low against the greenback Bank of Japan Governor Haruhiko Kuroda walked back some of his comments that consumers are now more willing to accept higher prices after criticism on social media and a grilling in parliament A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks traded cautiously amid recent upside in yields and ahead of upcoming risk events. ASX 200 declined with losses exacerbated after the RBA delivered a larger-than-expected rate hike. Nikkei 225 swung between gains and losses although a weak JPY boosted the index above 28k. Hang Seng and Shanghai Comp. were varied as the mainland was kept afloat by reopening optimism and with Hong Kong subdued by property names, although tech benefitted from hopes Beijing may be easing its crackdown on the sector with China reportedly to conclude the cybersecurity probe into certain companies. Top Asian News China's Tianjin city reopened all subway stations that were closed due to COVID, while Shanghai Port's daily volume rose to 95% of the normal level, according to local press. Labor Advisory Committee urged US President Biden to extend China tariffs, according to Axios. Japan set up a team to monitor land sales near bases and nuclear plants or on strategically located islands under a new law designed to prevent hostile foreigners from affecting national security, according to Nikkei. RBA hiked rates by 50bps to 0.85% (exp. 25bps increase) and said inflation in Australia has increased significantly, while it is committed to doing what is necessary to ensure that inflation in Australia returns to the target over time. RBA added that inflation is likely to be higher than was expected a month ago and the Board expects to take further steps in normalising monetary conditions over the months ahead with the size and timing of future interest rate increases to be guided by the incoming data and the assessment of the outlook for inflation and the labour market. Furthermore, it noted the Australian Economy is resilient although one source of uncertainty about the economic outlook is how household spending evolves, given the increasing pressure on Australian households' budgets from higher inflation. Japan's Economy Minister Yamagiwa says they are closely watching any impact of FX movements on the economy, wants to refrain from commenting on FX levels, via Reuters. European bourses are modestly pressured, Euro Stoxx 50 -0.9% , with newsflow relatively limited once more and participants looking ahead to the week's risks events. Stateside, performance is in-fitting with this directionally, though marginally more contained in terms of magnitudes, with a limited US docket ahead; ES -0.5%. EU lawmakers have come to an agreement on a single mobile charging point, via Reuters; will be USB-C by fall-2024. Top European News UK PM Johnson won the confidence vote, as expected, with total votes at 211 vs 148, according to Reuters. However, the Telegraph highlights that Johnson is not "out of the woods yet" given that he has lost the support of so many backbenchers. UK PM Johnson said he is grateful for colleagues' support and that they need to come together as a party now. PM Johnson added that they can now focus on what they are doing to help people in the country and have a chance to continue strengthening the economy, while he responded that is certainly not interested when asked about a snap election, according to Reuters. Subsequently, the 1922 Committee is, according to the understanding of UK MP Ellwood, looking at altering party rules to allow another no-confidence vote within a one-year period, via Sky's Degenhardt. Barclaycard UK May consumer spending rose 9.3% Y/Y, which reflected the rising cost of living and base effects, according to Reuters. FX Dollar takes time out after rallying further on yield factors and frailty of others, DXY midway between 102.830-450 range. Yen continues to underperform on rate and relative BoJ policy dynamics, with Franc also feeling the heat from SNB vs Fed, ECB etc policy divergence; USD/JPY touches 133.00 before easing back, USD/CHF tops 0.9675 and EUR/CHF crosses 1.0400. Kiwi hit by abrupt turnaround in AUD/NZD tide after RBA exceeded market expectations with a 50bp hike compounded by hawkish guidance; NZD/USD sub-0.6500 around 0.6450, AUD/NZD above 1.1100 and AUD/USD within sight of 0.7200. Sterling volatile after PM Johnson wins confidence vote, but significant minority of Conservative Party want him out; Cable choppy either side of 1.2500 and EUR/GBP whipsaws around 0.8550. Loonie softer with oil ahead of Canadian trade data and Ivey PMIs, USD/CAD near 1.2600 after probe beyond round number. Lira continues to slide after Turkish President Erdogan repeats intention to keep cutting rates irrespective of ongoing rise in inflation, USD/TRY tests 14.7500. Fixed Income Firm bounce in bonds following extension of bear run to new cycle lows. Bunds lead the way in core debt circles with a near full point recovery to 149.80, while BTPs remain to the fore at the margins between 121.27-122.86 bounds. Gilts flat after falling short of 115.00 before solid 2025 DMO auction, T-note a tad firmer and curve flatter for choice ahead of 3 year sale. Commodities Crude benchmarks have waned from initial upside stemming from bullish bank commentary amid a broader easing in risk sentiment. Thus far, WTI and Brent have been as low as USD 117.76/bbl and USD 118.62/bbl respectively, circa. USD 2.00/bbl from initial highs. Goldman Sachs hiked its Q3 Brent oil forecast to USD 140/bbl from USD 125/bbl and increased its Q4 forecast to USD 130/bbl from USD 125/bbl. Morgan Stanley's base case view is for Brent to reach USD 130/bbl during Q3 with an upside to the bull case estimate of USD 150/bbl. Spot gold languished near the prior day's lows amid a firmer greenback. JPMorgan continues to see gold trading softer towards USD 1,800/oz in Q3 2022 on an expected rebound in investor risk sentiment and continued push higher in US yields. Spot gold is firmer but capped by USD 1850/oz, which now coincides with its 10-DMA, after losing the level late on Monday; base metals are generally pressured, amid risk aversion and following yesterday's price action. US Event Calendar 8:30am: Revisions: Trade Balance 8:30am: April Trade Balance, est. -$89.5b, prior -$109.8b 3pm: April Consumer Credit, est. $35b, prior $52.4b DB's Jim Reid concludes the overnight wrap Yesterday I published the 24th Annual Default Study. While nothing much will change for the remainder of 2022, we think we might be coming to the end of the ultra-low default world we’ve discussed so much in previous editions. First, we will likely have a cyclical US recession to address in 2023, and after that, a risk of the reversal of trends that have made the last 20 years so subdued for defaults. We see US HY defaults peaking at just over 10% in 2024 with Europe just under 7% helped by a higher BB weighting. After that we see many of the trends of the last couple of decades reversing, helping to leave the ultra-low default era behind. You can read all about this in the note but these factors include: higher structural inflation, less ability for central banks to be as aggressive across all fixed income - they will be forced to pick their battles (eg Peripherals), less global FX reserve accumulation, a turn up in the free float of global government bonds, higher term premium, a structural fall from peak corporate profits, and shorter gaps between recessions. None of this need be a disaster just a change in the long-term trend. Clearly our view relies a lot on inflation being sticky and helping set off a 2023 recession and then remaining sticky after this, and thus changing the landscape of the last 20 years. If we’re wrong on both, the ultra-low default world will survive. See the report here. The biggest story yesterday was a surge in yields but before we get there, a big curiousity to those of us in the UK, albeit with very limited implications for global markets, was the confidence vote last night for Prime Minister Boris Johnson from within his own party. That came after the threshold of 15% of his own MPs called for a vote, and the final result saw him win by just 211-148, meaning that 41% of his own party’s MPs voted against him. For reference, that’s more than the 37% of MPs who voted against his predecessor Theresa May in a similar vote in December 2018, and it was only 5 months later that she announced her resignation after failing to deliver Brexit and witnessing a dramatic turn in the Conservatives’ poll ratings. The next big hurdle for Johnson will likely be two by-elections on June 23rd, one of which is in a “Red Wall” seat that the Conservatives gained off Labour for the first time in decades to win their majority at the last election, whilst the other is in a traditionally safe Devon seat for the Conservatives but where the bookmakers have the Liberal Democrats as the favourite to win. So bad showings in those two would keep questions about Johnson’s leadership in the headlines and further intensify the pressure on him. In theory the Conservative leadership rules give him another year before a repeat confidence vote can happen, but history tells us that once this process gets set in motion it is incredibly difficult to reverse the negative momentum, and both Theresa May and Margaret Thatcher resigned well within a year even though they also won a majority of their own MPs at the confidence vote. Sterling actually climbed around +0.5% in the morning as the vote was officially triggered before giving back half these gains as the day progressed. However even after the surprise result at 9pm last night Sterling didn't move, and this morning it’s just -0.09% lower, trading at 1.252 against the US dollar. Back to the main event, which was the global rates sell-off, where 10yr Treasury yields poked back up above 3% for the first time in nearly a month, whilst European yields hit fresh multi-year highs of their own ahead of this Thursday’s ECB meeting. There’ve been a couple of catalysts behind those moves higher, but a key one over the last week and a half has been the perception that near-term recession risks (at least in 2022) are fading back again, which in turn is set to give central banks the space to continue hiking rates and thus take bond yields higher. On top of that, the fact that recent inflation data has proven stickier than expected has also pushed yields higher, and investors are eagerly awaiting to see if we get another upside surprise from the US CPI reading out on Friday. All-in-all, those moves sent the 10yr Treasury yield up by +10.3bps yesterday to 3.04%, with a rise in real yields of +8.3bps behind the bulk of the move. That came as investors dialled back up their bets on Fed tightening over the rest of the year, with the implied rate by the December FOMC meeting at a 1-month high of 2.85%, whilst the rate priced in by the Feb-2023 meeting went back above 3% for the first time in a month as well. But it was in Europe where there were even more significant milestones, with the amount of ECB rate hikes priced in by December exceeding 125bps for the first time, meaning that markets are fully pricing in at least one 50bp hike by year-end, assuming the ECB begins liftoff at the July meeting. That prospect of a 50bp hike from the ECB sent yields on 10yr bunds up +4.9bps to 1.32%, which is their highest level since mid-2014, whilst the German 2yr yield (+3.0bps) hit its highest level since 2011. It was a similar picture elsewhere on the continent, with yields on 10yr OATs (+4.1bps) at a post-2014 high, and those on 10yr BTPs (+1.3bps) at a post-2018 high. Gilts underperformed however, with 10yr yields up +9.2bps as investors moved to price in at least one 50bp hike from the BoE by year-end. Those moves have gained further momentum overnight after the Reserve Bank of Australia hiked rates by a larger-than-expected 50bps, helping 10yr Treasury yields to rise a further +1.9bps this morning to hit 3.06%. Their statement also pointed to further tightening ahead, and said that they expect “to take further steps in the process of normalizing monetary conditions in Australia over the months ahead”, and that they were “committed to doing what is necessary to ensure that inflation in Australia returns to target over time.” Unsurprisingly, the Australian dollar is also the top-performing G10 currency this morning, up +0.50% against the US Dollar. The strong rise in bond yields wasn’t enough to stop equities from posting a decent start to the week, although they did pare back their initial gains following the US open. By the close, the S&P 500 (+0.31%) had held onto a broad-based advance, with 8 of 11 sectors advancing, even after paring back gains as high as +1.5% in the morning. Tech stocks fared slightly better than the broader index, with the NASDAQ gaining +0.40%. The clearest split was between mega- and small-cap shares, as mega-cap shares were clear outperformers as the FANG+ Index ended the day +1.68% higher while the small-cap Russell 2000 (+0.36%) lagged behind. It was much the same story in Europe too, where the STOXX 600 (+0.92%), the DAX (+1.34%) and the CAC 40 (+0.98%) all moved higher as well. Whilst equities were making further gains, there wasn’t much respite on the inflation side since commodities continued their advance, with Bloomberg’s Commodity Spot Index (+1.86%) hitting a fresh record on the back of the latest moves. Admittedly, Brent Crude (-0.18%) and WTI (-0.31%) oil prices fell back slightly, and we also saw European natural gas prices (-1.75%) fall to their lowest levels since Russia’s invasion of Ukraine began. But US natural gas prices surged another +8.37% to a fresh post-2008 high, whilst agricultural goods also saw some serious movements, with futures on corn (+2.13%), wheat (+5.10%) and sugar (+1.40%) all rising on the day. This morning we’ve seen even further momentum behind commodity prices, with Brent crude moving back above the $120/bbl mark thanks to a +0.69% gain. Overnight in Asia, equity markets have put in a pretty mixed performance as they grappled with that monetary tightening mentioned above. The Nikkei (+0.51%), the CSI 300 (+0.65%) and the Shanghai Comp (+0.48%) have all moved higher, but the Hang Seng (-0.12%) has posted a marginal decline and the Kospi (-1.37%) has lost significant ground. Meanwhile in Australia, the S&P/ASX 200 has deepened its loses since the RBA’s hawkish decision, and is currently down -1.63%, whilst futures in the US are also pointing lower, with those on the S&P 500 down -0.59% this morning. On the FX side, we’ve also seen the Japanese Yen fall to a 20-year low against the US Dollar of 131.88 by the close yesterday, and this morning it’s lost further ground to hit 132.86. That comes as the BoJ stands out among its global peers in not tightening policy, which is leading to a widening interest rate differential as other central banks continue hiking. Finally we started on credit so let's end there too before the day ahead preview. Our colleagues in the European Leveraged Finance Research team have just published their quarterly top trade ideas. You can find the report here. To the day ahead now, and data releases include German factory orders for April, the final UK services and composite PMI for May, as well as the US trade balance and consumer credit for April. Otherwise central bank speakers include the ECB’s Wunsch. Tyler Durden Tue, 06/07/2022 - 08:03.....»»

Category: blogSource: zerohedgeJun 7th, 2022

Futures Jump, Tech Stocks Rally As Beijing Eases Covid Restrictions

Futures Jump, Tech Stocks Rally As Beijing Eases Covid Restrictions Global markets and US equity futures pushed sharply higher to start the new week (at least until some Fed speakers opens their mouth and threatens a 100bps emergency rate hike) as Beijing’s latest move to ease Covid restrictions injected a note of optimism into markets rattled by inflation and rate-hike concerns. Nasdaq 100 futures climbed 1.4% at 7:15 a.m. in New York after the underlying index erased more than $400 billion in market value on Friday amid renewed concerns about tightening monetary policy, as Beijing rolled back Covid-19 restrictions, boosting global risk appetite after reporting zero local covid cases on Monday while also finding no community cases for three straight days... ... while a Wall Street Journal report that China is preparing to conclude its probe on Didi Global boosted sentiment further, with Didi shares surging 50% and sending the Hang Seng Tech index soaring. S&P 500 futures also climbed, rising about 1% and trading near session highs. Treasuries and the dollar slipped. Among other notable movers in premarket trading, Apple rose 1.6%, Tesla jumped 3.9% after tumbling over 9% by the close on Friday, while cryptocurrency-tied stocks jumped with Bitcoin. Here are some other notable premarket movers: Amazon.com (AMZN US) shares rose as much as 2% following a 20-for-1 stock split. Didi Global Inc. (DIDI US) soared after a report that Chinese regulators are about to conclude a probe into the company and restore its apps to mobile stores as soon as this week. Cryptocurrency-tied stocks climb with Bitcoin, which rose beyond the $30,000 level after languishing at the weekend. Riot Blockchain (RIOT US) +7.1%; Coinbase (COIN US) +6.6%. Crowdstrike (CRWD US) shares rise as much as 3.9% following an upgrade to overweight from equal- weight at Morgan Stanley, with the broker saying that the cyber security firm offers “durable” growth and free cash flow at a discount. ON Semi (ON US) shares rise as much as 8.2%. The sensor maker will be added to the S&P 500 Index this month, S&P Dow Jones Indices said late US stocks slumped in last week’s final session after strong hiring data cleared the way for the Federal Reserve to remain aggressive in its fight against inflation by raising rates, and after repeat warnings by Fed presidents that the central bank was willing to keep hiking. This week, focus will be on the latest US CPI print to assess how much further the Fed will tighten policy. Inflation is likely to “stall by the end of this year unless the energy or oil prices double again, but a lot of it is already priced in,” Shanti Kelemen, chief investment officer at M&G Wealth, said on Bloomberg Television. While the economy is likely to slow, “I don’t think the US will flip into a recession this year. I think there is still too much of a tailwind from spending and economic activity.” Goldman economists said the Fed may be able to pull off its aggressive rate-hike plan without tipping the country into recession. The easing of Chinese lockdowns will help abate supply-chain pressures, said Diana Mousina, a senior economist at AMP Capital. “Positive news around Chinese economic activity and cheaper equity valuations could offer value from a long-term investment perspective, but volatility will remain high in the short-term,” Mousina said in a note. On the other hand, Morgan Stanley's permagloomish Michael Wilson warned that weakening corporate profit forecasts will provide the latest headwind to US stocks, which are likely to fall further before bottoming during the second-quarter earnings season. In Europe, the Stoxx 600 was up 0.9% with technology and mining stocks leading gains. Basic resources led an advance in the Stoxx Europe 600 index as copper rose to its highest since April, with sentiment across industrial metals bolstered by China’s gradual reopening. The technology sector also outperformed, following a gain for Asian peers and amid a recovery in Nasdaq 100 futures in the US. The Stoxx 600 Tech index was up as much as 2.1%; Stoxx 600 benchmark up 0.9%. Tencent-shareholder Prosus was among the biggest contributors to the gain amid a rise for Hong Kong’s Hang Seng tech index, driven by Didi Global and Meituan; Tencent shares rose 2.4% while    Semiconductor-equipment giant ASML was the biggest contributor to the gain; other chip stocks ASMI, Infineon and STMicro all higher too. Just Eat Takeaway also higher following a report that Grubhub co-founder Matt Maloney had worked with private equity investor General Atlantic to buy back the food delivery company he sold to the Dutch firm last year. Here are some of the other notable European movers today: Just Eat Takeaway.com shares rise as much as 12% in the wake of a report saying Grubhub co-founder Matt Maloney had worked with private equity investor General Atlantic to buy back the food delivery company he sold to the Dutch firm last year for $7.3b. Semiconductor-equipment giant ASML climbs as much as 3.1% as European tech stocks outperform the broader benchmark, following a gain for Asian peers and amid a recovery in Nasdaq 100 futures. LVMH gains as much as 1.7% with luxury stocks active as Beijing continues to roll back Covid-19 restrictions in a bid to return to normality. Kering and Hermes both climb as much as 1.9%. Melrose rises as much as 4.7% after the firm said it has entered into an agreement to sell Ergotron to funds managed by Sterling for a total of ~$650m, payable in cash on completion. Serica Energy jumps as much as 12%, the most since March 30, after the oil and gas company published a corporate update and said it expects to benefit from investment incentives packaged with the UK’s windfall tax. Airbus rises as much as 2.8% after Jefferies reinstated the stock as top pick in European aerospace & defense, replacing BAE Systems, as short-term production challenges should not overshadow the potential to double Ebit by 2025. EDF drops as much as 3.3% after HSBC analyst Adam Dickens downgraded to reduce from hold, citing “corroded confidence” Accell falls as much as 4.8%, the most intraday since December, after KKR’s tender offer for the bicycle maker failed to meet the 80% acceptance threshold. Meanwhile, the European Central Bank is set to announce an end to bond purchases this week and formally begin the countdown to an increase in borrowing costs in July, joining global peers tightening monetary policy in the face of hot inflation. The ECB is planniing to strengthen its support of vulnerable euro-area debt markets if they are hit by a selloff, Financial Times reported. Italian and Spanish bonds gained. Earlier in the session, Asian stocks climbed, supported by a rally in Chinese tech shares and positive sentiment following Beijing’s economic reopening.  The MSCI Asia Pacific index rose 0.6% as Hong Kong-listed internet names jumped after a report that authorities are wrapping up their probe into Didi Global. Hong Kong and Chinese shares were among the top gainers in the region, also helped by Beijing moving closer to returning to normal as it rolled back Covid-19 restrictions. “As policymakers continue to deliver on support pledges, the worst is likely behind us,” said Marvin Chen, strategist at Bloomberg Intelligence. “We are seeing the beginning of a recovery into the second half of the year as the growth outlook bottoms out.” Japanese shares were higher, with transportation and restaurant stocks gaining after the Nikkei reported the government is considering restarting the “Go To” domestic travel subsidy campaign as soon as this month. Japanese equities erased early losses and rose with Chinese stocks as a loosening of Covid-19 restrictions in Beijing increased bets that economic activity will pick up. The Topix rose 0.3% to 1,939.11 as of market close Tokyo time, while the Nikkei advanced 0.6% to 27,915.89. Daiichi Sankyo Co. contributed the most to the Topix gain, increasing 3.7%. Foreign investors are returning to emerging Asian equities after several weeks of outflows, data compiled by Bloomberg show. Weekly inflows for Asian stock markets excluding Japan and China climbed to almost $2.7 billion last week, the most since February. Asian stocks have been outperforming their US counterparts over the past few weeks, with the MSCI regional benchmark up 5.7% since May 13, more than double the gains in the S&P 500. Stock markets in South Korea, New Zealand and Malaysia were closed on Monday Stocks in India dropped amid concerns over inflation as the Reserve Bank of India’s interest rate setting panel starts a three-day policy meeting.  The S&P BSE Sensex fell 0.2% to 55,675.32 in Mumbai, while the NSE Nifty 50 Index declined 0.1%. Ten of the 19 sector sub-gauges managed by BSE Ltd. slid, led by an index of realty companies. Makers of consumer discretionary goods were also among the worst performers.  “The market has been exercising caution ahead of the credit policy announcement this week, and hence investors trimmed their position in rate-sensitive sectors such as realty,” according to Kotak Securities analyst Shrikant Chouhan.  The yield on the benchmark 10-year government bond rose to its highest level since 2019 on Monday amid a surge in crude prices and ahead of the RBI’s rate decision on Wednesday. Reliance Industries contributed the most to the Sensex’s decline, decreasing 0.5%. Out of 30 shares in the Sensex index, 9 rose and 21 fell. In Australia, the S&P/ASX 200 index fell 0.5% to close at 7,206.30 after a strong US jobs report reinforced bets for aggressive Fed tightening. The RBA is also expected to lift rates on Tuesday, with the key debate centering on the size of the move. Read: Australia Set for Back-to-Back Rate Hikes Amid Split on Size Magellan was the worst performer after its funds under management for May declined 5.2% m/m. Tabcorp climbed after settling legal proceedings with Racing Queensland. In New Zealand, the market was closed for a holiday In FX, the dollar fell against its Group-of-10 peers as hopes for a recovery in China’s economy damped demand for the haven currency. The Bloomberg Dollar Spot Index fell 0.3% after posting a weekly gain on Friday. China’s equity index jumped after Beijing rolled back Covid-19 restrictions and received a further boost after a report that a ban on Didi adding new users may be lifted. “Further lifting of restrictions in Beijing helped Chinese equities, which spilled over into Europe with risk more ‘on’ than ‘off’,” Societe Generale strategist Kit Juckes wrote in a note to clients. “The dollar is once again on the back foot.” USD/JPY dropped 0.1% to 130.73. It touched 130.99 earlier, inching closer to the 131.35 reached last month, which was the highest since April 2002.  “Dollar-yen is being sold for profit-taking because we don’t have enough catalysts to break 131.35,” said Juntaro Morimoto, a currency analyst at Sony Financial Group Inc. in Tokyo. But, should US inflation data due this week be higher than estimated, it will see dollar-yen break 131.35. In rates, Treasuries, though off session lows, remained under pressure as S&P 500 futures recover a portion of Friday’s loss. 10-year TSY yields rose 1bp to 2.95%, extending the streak of advances to five days, the longest in eight weeks; UK 10-year yield underperformed, jumping 6bps to 2.21% after domestic markets were closed Thursday and Friday for a holiday. US auctions resume this week beginning Tuesday, while May CPI report Friday is the main economic event. IG dollar issuance slate includes Tokyo Metropolitan Govt 3Y SOFR; this week’s issuance slate expected to be at least $25b. Three- month dollar Libor +3.90bp to 1.66500%. Bund, Treasury and gilt curves all bear-flatten, gilts underperform by about 2bps at the 10-year mark. Peripheral spreads tighten to Germany. In commodities, WTI crude futures hover below $120 after Saudis raised oil prices for Asia more than expected. Spot gold is little changed at $1,851/oz. Spot silver gains 1.5% near $22. Most base metals trade in the green; LME nickel rises 5.4%, outperforming peers. LME tin lags, dropping 0.7%. There is no major economic data on the US calendar. Market Snapshot S&P 500 futures up 1.1% to 4,152.50 STOXX Europe 600 up 0.9% to 443.90 MXAP up 0.6% to 169.12 MXAPJ up 0.8% to 558.02 Nikkei up 0.6% to 27,915.89 Topix up 0.3% to 1,939.11 Hang Seng Index up 2.7% to 21,653.90 Shanghai Composite up 1.3% to 3,236.37 Sensex little changed at 55,772.44 Australia S&P/ASX 200 down 0.4% to 7,206.28 Kospi up 0.4% to 2,670.65 German 10Y yield little changed at 1.29% Euro up 0.2% to $1.0742 Brent Futures up 0.5% to $120.28/bbl Gold spot up 0.0% to $1,851.93 U.S. Dollar Index down 0.22% to 101.92 Top Overnight News from Bloomberg Boris Johnson will face a leadership vote in his ruling Conservative Party on Monday following a series of scandals, including becoming the first sitting prime minister found to have broken the law. Chinese regulators are concluding probes into Didi and two other US-listed tech firms, preparing as early as this week to lift a ban on their adding new users, the Wall Street Journal reported, citing people familiar with the matter. The European Central Bank is set to strengthen commitment to support vulnerable euro-area debt markets if they are hit by a selloff, the Financial Times reported, citing unidentified people involved in the discussions. A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks traded mixed following last Friday's post-NFP losses on Wall St and ahead of this week's global risk events - including central bank meetings and US inflation data, while participants also digested the latest Chinese Caixin PMI figures and the North Korean missile launches. ASX 200 was pressured by weakness in tech and mining, with sentiment not helped by frictions with China. Nikkei 225 pared early losses but with upside limited by geopolitical concerns after North Korean provocations. Hang Seng and Shanghai Comp. were encouraged by the easing of COVID restrictions in Beijing, while the Chinese Caixin Services and Composite PMI data improved from the prior month but remained in contraction. Sony Group (6758 JT) said its planned EV JV with Honda Motor (7267 JT) may hold a public share offering, according to Nikkei. Top Asian News China’s Beijing will continue to roll back its COVID-19 restrictions on Monday including allowing indoor dining and public transport to resume in most districts aside from Fengtai and some parts of Changping, according to Reuters and Bloomberg. Furthermore, a China health official called for more targeted COVID control efforts and warned against arbitrary restrictions for COVID, while an official also said that Jilin and Liaoning should stop the spread of COVID at the border. Australia accused China of intercepting a surveillance plane and said that a Chinese military jet conducted a dangerous manoeuvre during routine surveillance by an Australian plane over international waters on May 26th, according to FT. BoJ Governor Kuroda said Japan is absolutely not in a situation that warrants tightening monetary policy and the BoJ's biggest priority is to support Japan's economy by continuing with powerful monetary easing, while he added Japan does not face a trade-off between economic and price stability, so can continue to stimulate demand with monetary policy, according to Reuters. European bourses are firmer on the session, Euro Stoxx 50 +1.3%, with newsflow thin and participants reacting to China's incremental COVID/data developments during reduced trade for Pentecost. Stateside, futures are bid to a similar extent in a paring of the post-NFP pressure on Friday, ES +1.0%, with no Tier 1 events for the region scheduled today and attention very much on inflation data due later. Chinese regulators intend to conclude the DiDi (DIDI) cybersecurity probe, and remove the ban on new users, via WSJ citing sources; could occur as soon as this week. DIDI +50% in pre-market trade Top European News Most of the ECB governing council members are expect to back proposals to create a bond-purchase programme to buy stressed government debt, such as Italy, according to sources cited by the FT. Confidence vote in UK PM Johnson to occur between 18:00-20:00BST today, results to be immediately counted, announcement time TBC. London’s Heathrow Airport ordered carriers to limit ticket sales for flights until July 3rd to maintain safety amid understaffing and overcrowding, according to The Times. French Finance Minister Le Maire expects positive economic growth this year although will revise economic forecasts in July, according to Reuters. EU Commissioner Gentiloni said he aims to propose reform for the EU stability pact after summer which could envisage a specific debt/GDP target for each country, while he added that Italy should show commitment to keeping public debt under control and needs to avoid increasing current spending in a permanent way, according to Reuters. FX Pound perky on return from long Platinum Jubilee holiday weekend as UK yields gap up in catch up trade and Sterling awaits fate of PM; Cable above 1.2550 to probe 10 DMA, EUR/GBP tests 0.8550 from the high 0.8500 area. Dollar eases off post-NFP peaks as broad risk sentiment improves and DXY loses 102.000+ status. Kiwi lofty as NZ celebrates Queen’s birthday and Aussie lags ahead of RBA awaiting a hike, but unsure what size; NZD/AUD above 0.6525, AUD/USD sub-0.7125 and AUD/NZD cross closer to 1.1050 than 1.1100. Euro firmer amidst further declines in EGBs, bar Italian BTPs, eyeing ECB policy meeting and potential news on a tool to curb bond spreads, EUR/USD nearer 1.0750 than 1.0700. Loonie underpinned by rise in WTI after crude price increases from Saudi Arabia, but Lira extends losses irrespective of CBRT lifting collateral requirements for inflation linked securities and Government bonds; USD/CAD under 1.2600, USD/TRY not far from 16.6000. Fixed income Gilts hit hard in catch-up trade, but contain losses to 10 ticks under 115.00 awaiting the outcome of no confidence vote in PM Johnson Bunds underperform BTPs ahead of ECB on Thursday amidst reports that a new bond-buying scheme to cap borrowing costs may be forthcoming; 10 year German bond down to 149.59 at worst, Italian peer up to 123.15 at best US Treasuries relatively flat in post-NFP aftermath and ahead of low-key Monday agenda comprising just employment trends Commodities Crude benchmarks are bid by just shy of USD 1.00/bbl; though, overall action is contained amid limited developments and two-way factors influencing throughout the morning. Saudi Aramco increased its prices to Asia for July with the light crude premium raised to USD 6.50/bbl from USD 4.40/bbl vs Oman/Dubai, while it raised the premium to North West Europe to USD 4.30/bbl from USD 2.10/bbl vs ICE Brent but maintained premiums to the US unchanged from the prior month. Oman announced new oil discoveries that will increase output by 50k-100k bpd in the next 2-3 years, while it noted that its crude reserves stand at 5.2bln bbls and gas reserves are at around 24tln cubic feet, according to the state news agency citing the energy and minerals minister. Libya's El Sharara oil field resumed production at around 180k bpd after having been shut by protests for more than six weeks, according to Argus. French Finance Minister Le Maire said that France is in discussions with the UAE to replace Russian oil supplies, according to Reuters. US will permit Italy’s Eni and Spain’s Repsol to begin shipping oil from Venezuela to Europe as early as next month to replace Russian crude, according to Reuters citing sources familiar with the matter. Austria released strategic fuel reserves to cover for loss of production at a key refinery due to a mechanical incident, according to Reuters. Indonesia will adjust its palm oil export levy with the regulations that will outline the changes expected soon, according to a senior official in the economy ministry cited by Reuters. Turkish presidential spokesman Kalin said deliveries of Ukrainian grain via the Black Sea and through the area of the strait could begin in the near future, according to TASS citing an interview with Anadolu news agency. US Event Calendar Nothing major scheduled DB's Jim Reid concludes the overnight wrap Later this morning, I will be publishing the 24th Annual Default Study entitled "The end of the ultra-low default world?". Please keep an eye out for it but I won't let you miss it in the EMR and CoTD over the next few days! For those in the UK, I hope you had a good four-day weekend. We went to two big parties and my digestive system and liver need a rest. Well, until my upcoming birthday this weekend!. One of the parties had a converted VW campervan with 5 or 6 self-service drinks taps on the outside of which one was filled with ice cold Prosecco. Thankfully the Queen doesn't have a 70-year Jubilee very often! The fun and games in markets this week are heavily back ended as an ECB meeting on Thursday is followed by US CPI on Friday. The rest of the week is scattered with production and trade balance data, while Chinese aggregate financing data is expected at some point. The Fed are now on their pre-FOMC blackout so the attention will be firmly on the ECB this week. So let's preview the two main events. For the ECB, our European economists believe the ECB will confirm that APP net purchases will cease at the end of the month, paving the way for policy rate lift-off at the July meeting. Our economists believe the ECB will have to hike rates by 50 basis points at either the July or September meeting, with the risks skewed toward the latter, to accelerate the policy hiking cycle in light of growing inflationary pressures. Our economists also believe that hiking cycle will ultimately reach a 2 percent terminal rate next summer, some 50 basis points into restrictive territory. As prelude, next week watch for the staff's forecast to upgrade inflation to 2 percent in 2024, satisfying the criteria for lift-off. With all three lift-off conditions met, expect the statement language to upgrade rate guidance for the path of the hiking cycle. Meanwhile, the June meeting should also bring about the expiration of the TLTRO discount. There are two interesting things for the ECB to consider at the extreme end of the spectrum at the moment. Firstly German wages seem to be going higher. In a note on Friday, DB's Stefan Schneider (link here) updated earlier work on domestic wage pressures by highlighting that on Thursday night, the 700k professional cleaners in the country achieved a 10.9% pay rise. In addition, with the nationwide minimum wage legalisation voted through on Friday, the lowest paid in this group will get a +12.6% rise from October. At the other end of the spectrum 10yr Italian BTPs hit 3.40% on Friday, up from 1.12% at the start of the year and as low as 2.85% intra-day the preceding Friday. We're confident that the ECB will create tools to deal with Italy's funding issues, but it is more likely to be reactive than proactive to ensure legal barriers to intervene are not crossed. However, the nightmare scenario we've all been hypothetically thinking about for years, if not decades, is here. Runaway German inflation at the same time as soaring Italian yields. The good news is that this should bring a lot more targeted intervention and a better-balanced policy response than in the last decade where negative rates and blanket QE was a one size fits all policy. High inflation will force the ECB to hike rates while managing the fall out on a more bespoke basis. It won't be easy, but it will likely be better balanced. Following on from the ECB, the next day brings the US CPI data. Month-over-month CPI is expected to accelerate to 0.7% from last month’s 0.3% reading. The core measure stripping out food and energy is expected to print at 0.5%. Those figures would translate to 8.3% and 5.9% for the year-over-year measures, respectively (from 8.3% and 6.2% last month). The Fed policy path for the next two meetings appears to be locked in to 50 basis point hikes, but Fed officials have highlighted the importance of inflation readings to determine the path of policy thereafter. There is a growing consensus that month-over-month inflation readings will have to decelerate in order to slow hikes to 25 basis points come September. Some Fed officials are still considering ramping the pace up to 75 basis points if inflation doesn’t improve. None appear to be considering zero policy action in September. Elsewhere, data will highlight production figures and the impact of the nascent tightening of financial conditions, with PMI, PPI, and industrial production figures due from a number of jurisdictions. Asian equity markets have overcame initial weakness this morning and are moving higher as I type. Across the region, the Hang Seng (+1.14%) is leading gains due to a rally in Chinese listed tech stocks. Additionally, the Shanghai Composite (+1.01%) and CSI (+1.06%) are also trading up after markets resumed trading following a holiday on Friday. The easing of Covid-19 restrictions in Beijing is helping to offset a miss in China’s Caixin Services PMI for May. It came in at 41.4 (vs. 46.0 expected), up from 36.2 last month. Elsewhere, the Nikkei (+0.30%) is also up while markets in South Korea are closed for a holiday. Outside of Asia, US stock futures have been steadily climbing in the last couple of hours before finishing this with contracts on the S&P 500 (+0.55%) and NASDAQ 100 (+0.65%) both in the green. US Treasuries are ever so slightly higher in yield. Recapping last week now and a renewed sense that global central banks would have to tighten policy more than was priced in given historic inflation drove yields higher and equity markets lower over the past week. This reversed a few weeks where market hike pricing had reversed. This move was driven by a series of inflationary data but also came right from the source, as Fed and ECB speakers sounded a hawkish tone ahead of their respective meetings in June. Elsewhere, OPEC+ met and agreed to expand daily production, which was followed by reports that President Biden would visit the Crown Prince in Saudi Arabia. Peeling back the covers. A series of ECB speakers openly considered the merits of +50bp hikes in light of growing inflation prints, as core Euro Area CPI rose to a record high, while German inflation hit figures not seen since the 1950s. In turn, 2yr bund yields climbed +30.9bps (+3.0bps Friday), and the week ended with +122bps of tightening priced in through 2022, the highest to date and implies some hikes of at least +50bps. A reminder that our Europe economists updated their ECB call to at least one +50bp hike in either July or September; full preview of that call and next week’s ECB meeting here. Yields farther out the curve increased as well, including 10yr bunds (+31.0bps, +3.6bps Friday), OATs (+32.3bps, +4.2bps Friday), and gilts (+23.8bps, +5.4bps Friday) on their holiday-shortened week. Italian BTP 10yr spreads ended the week at their widest spread since the onset of Covid at 212bps. The tighter expected policy weighed on risk sentiment, sending the STOXX 600 -0.87% lower over the week (-0.26% Friday). It was a similar story in the US, where a march of Fed officials, led by Vice Chair Brainard herself, again signed on for +50bp hikes at the next two meetings, and crucially, ruling out anything less than a +25bp hike in September. It appeared there was growing consensus on the Committee to size the September hike between +25bp and +50bps based on how month-over-month inflation evolves between now and then, with clear evidence of deceleration needed to slow the pace of hikes. The May CPI data will come this Friday but last week had a series of labour market prints that showed the employment picture remained white hot, capped on Friday with nonfarm payrolls increasing +390k and above expectations of +318k. Meanwhile, average hourly earnings maintained its +0.3% month-over-month pace. Treasury yields thus sold off over the week, with 2yr yields gaining +17.9bps (+2.5bps Friday) and 10yr yields up +20.1bps (+3.1bps Friday). The implied fed funds rate by the end of 2022 ended the week at 2.82%, its highest in two weeks, while the probability of a +50bp September hike ended the week at 66.3%, its highest in a month. The S&P 500 tumbled -1.20% (-1.63% Friday), meaning its run of weekly gains will end at a streak of one. Tech and mega-cap stocks fared better, with the NASDAQ losing -0.98% (-2.47% Friday) and the FANG+ fell -0.30% (-3.76% Friday). Elsewhere OPEC+ agreed to increase their production to +648k bls/day, after a steady flow of reports leaked that the cartel was considering such a move. Nevertheless, futures prices increased around +1.5% (+3.10% Friday) over the week, as it was not clear whether every member had the spare capacity to increase production to the new putative target, while easing Covid restrictions in China helped increase perceived demand. The OPEC+ announcement was closely followed by reports that President Biden would visit the Crown Prince in Saudi Arabia. Tyler Durden Mon, 06/06/2022 - 07:51.....»»

Category: blogSource: zerohedgeJun 6th, 2022

Texas Capital"s (TCBI) Strategic Plan to Aid Despite High Costs

Texas Capital's (TCBI) plan to expand its product offerings and digitalize operations will likely boost financials. However, escalating operating costs are concerning. Texas Capital Bancshares, Inc.’s TCBI strong capital position should help it undertake opportunistic expansions of its product offerings. However, rising costs and high debt levels are major woes.A rise in net interest income (NII) has been driving revenues and organic growth for Texas Capital over the past years. Revenues witnessed a compound annual growth rate (CAGR) of 2.1% over the last five years (2017-2021). The company’s strategic plan (announced in September 2021), underlining an expanded product offering and improving coverage in the potential markets, is expected to support revenue growth in the quarters ahead.Texas Capital plans to digitalize its operations by strategically designating in-house and third-party platforms to build scale and shore up its client experience. It intends to achieve simplified interactions and client enablement by focusing on infrastructure modernization through cloud-native platforms, application programming interfaces to support scale, refining digital tooling and process automation. This will be done across the workforce, realigning technology and operations resources across major spectrums of the business, enabling faster response times and client-centric development, and continual boost of cybersecurity and governance.Texas Capital’s relationship-based business model is likely to increase its market share, thereby driving loan and deposit growth in the upcoming period. Also, we believe that the company's loan pipeline and deposits are well-positioned to grow further, backed by an improving U.S. economy. Thus balance-sheet strength is a positive for TCBI.The company’s capital ratios remain above the levels required to be considered well-capitalized and have been enhanced with the additional capital raised since 2008. As of Mar 31, 2022, the ratio of tangible common equity to total tangible assets was 8.9% compared with 6.7% in the year-ago quarter.A CET1 ratio of 9-10% is expected by 2025. We believe that Texas Capital’s strong capital position would help it undertake opportunistic expansions in the foreseeable future.However, the bank continues to see a persistent rise in expenses over the past few years. This is due to efforts to hire experienced bankers, upgrade technology and expand footprints. These moves might boost Texas Capital’s growth in the long term, but the rising expense level is limiting the near-term bottom-line expansion. Management calls for low double-digit expense growth this year and positive operating leverage by late 2022 or first-quarter 2023.As of Mar 31, 2022, Texas Capital had total debt (comprising long-term debt and short-term borrowings) of $2.36 billion, which witnessed a volatile trend over the last few quarters. The company’s cash and due from banks as of Mar 31, 2022, was $234.9 million, up sequentially. Given the unsound liquidity position, its debt seems unmanageable. The company's significantly low cash levels will hurt if the economic situation worsens.Amid the Fed's accommodative monetary policy stance and the prevailing low-interest-rate environment, margins have been affected. Although the company might witness decent loan growth, supported by economic recovery and the recent rate hike with the possibility of additional increases in the future, margins are likely to be under pressure in the near term as the overall interest-rate environment remains low.So far this year, shares of TCBI have lost 8.9% compared with a 4.3% decline of the industry it belongs to. Image Source: Zacks Investment Research Currently, TCBI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Stocks That Warrant a LookA couple of better-ranked stocks in the banking space are Independent Bank Corporation IBCP and Civista Bancshares, Inc. CIVB. IBCP and CIVB currently carry a Zacks Rank of 2 (Buy).Independent Bank’s Zacks Consensus Estimate for current-year earnings has been revised 6.5% upward over the past 30 days. Over the past six months, shares of IBCP have declined 14.4%.Civista Bancshares also witnessed a 3% upward earnings estimate revision for 2022 over the past 30 days. Over the past six months, shares of CIVB have declined 10.9%. Just Released: The Biggest Tech IPOs of 2022 For a limited time, Zacks is revealing the most anticipated tech IPOs expected to launch this year. Concerns about Federal interest rates and inflation caused many private companies to stay on the bench- leading to companies with better brand recognition and higher growth rates getting into the game. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity. See the complete list today.>>See Zacks Hottest IPOs NowWant 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 Texas Capital Bancshares, Inc. (TCBI): Free Stock Analysis Report Independent Bank Corporation (IBCP): Free Stock Analysis Report Civista Bancshares, Inc. (CIVB): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksMay 27th, 2022

Mastercard (MA) Platform to Extend Improved Cybersecurity Prowess

Mastercard (MA) launches the Cyber Front platform with the help of a minority investment in Picus. The platform tends to empower organizations to take prudent cybersecurity decisions. Mastercard Incorporated MA recently introduced the attack simulation and assessment platform, Cyber Front, in a bid to bolster the cybersecurity capabilities of businesses and governments. To roll out this platform, MA had undertaken a strategic minority investment in Picus Security, a leading platform for Breach and Attack Simulation (“BAS”).Shares of Mastercard gained 1.2% on May 25.Cyber Front utilizes a continually updated library containing more than 3,500 instances of real-world threats. Subsequently, it discloses security gaps and extends real-time mitigation insights for enabling organizations to gauge the effectiveness of their current systems, detect areas of exposure and take better decisions on cybersecurity investments. Prudent cybersecurity decisions enhance cybersecurity control of organizations for monitoring and countering threats, which, in turn, is likely to offer protection to their digital ecosystems over the immediate and long term.The recently launched platform forms part of the expanding Cybersecurity & Risk consulting practice of Mastercard. Additionally, management expects the Cyber Front platform to benefit Mastercard by bolstering its comprehensive and actionable data-driven services, which include authorization and fraud diagnostics, consumer and portfolio insights as well as consulting and marketing services. These services are likely to help those organizations (MA’s customers) tide over enterprise-wide risks and boost business growth.Markedly, Mastercard was prudent in choosing Picus for backing the Cyber Front platform. The reason behind selecting Picus can be attributed to its innovative technology in BAS (acknowledged by experts, one of which is the renowned research firm Frost & Sullivan) that assures to offer continuous protection from the current cyber threats.Initiatives similar to the latest one reinforce Mastercard’s sincere efforts to ease the continual identification of risks by organizations, helping them ace the digital transformation journey. Undoubtedly, digitization brought numerous benefits to organizations and consumers, but the trend prompted fraudsters to indulge in sophisticated and complex methods of cybercrimes.To address the growing incidence of cybercrimes, Mastercard boasts a strong cybersecurity suite developed through partnerships or significant investments in emerging cybersecurity technologies. The latest investment to roll out the Cyber Front platform, therefore, seems aptly timed. In December 2021, MA collaborated with Europol (also known as the European Union Agency for Law Enforcement Cooperation) to boost cyber resilience throughout Europe. Another remarkable move of Mastercard during last year, in an attempt to bolster its identity verification capabilities, was acquiring the leading provider of digital identity verification solutions Ekata and paving the way for safe and secured digital transactions for merchants as well as customers.An upgraded cybersecurity portfolio enables MA to extend enhanced fraud detection solutions, which, in turn, leads to an expanded global presence for the technology company in the global payments industry. These solutions are also a blessing in disguise for organizations that otherwise grapple with exorbitant costs in case of security breaches in the digital ecosystem of their businesses.Shares of Mastercard have gained 6.7% in the past six months against the industry’s 9.7% decline. MA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchSimilar to Mastercard, other companies like Visa Inc. V, PayPal Holdings, Inc. PYPL, and American Express Company AXP are continuously rolling out a diverse range of fraud detection solutions to protect merchants and consumers amid a growing digital economy.Visa launched the Advanced Identity Score in 2020 to minimize digital identity frauds and operational costs associated with identity-related forgeries. V steadily invests in technology to limit the impact of fraud and safeguard consumer and merchant-oriented information. The CyberSource solution by V boasts a diversified portfolio of payment and fraud management tools.PayPal continues to undertake significant investments to leverage the blockchain technology to boost digital identity capabilities. PYPL’s risk management and tokenization assure the legitimacy of transactions and prevent any illegal or fraudulent dealings.American Express remains steadfast in upgrading its digital arm for assisting merchants and Card Members across the globe. To complement the same, AXP also strives hard to come up with solutions that tend to offer protection to digital payment processes. In May 2022, American Express teamed up with Google to offer an enhanced checkout experience for AXP’s Card Members. While using Autofill on Chrome and Android, Card Members will be able to convert to and save virtual card numbers (VCN) that will take the place of the 15-digit physical card number, add an extra layer of safety from frauds and pave the way for seamless and secured shopping online and in Android apps.Shares of Visa and American Express have gained 3.8% and 1.7%, respectively, in the past six months. Meanwhile, PayPal stock has lost 57.2% in the same time frame. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022? Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buysAccess Zacks Top 10 Stocks for 2022 today >>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 Mastercard Incorporated (MA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMay 26th, 2022

3 Software Stocks to Watch for in a Challenging Industry

Computer Software industry participants like Cadence Design Systems (CDNS), PTC (PTC) and Aspen Technology (AZPN) are benefiting from steady digital transformations and strong adoption of cloud computing, despite coronavirus-led disruptions. The Zacks Computer Software industry benefits from the pandemic-induced accelerated digital transformation drive across the globe. Software is ubiquitous and has become the focal point of technological innovation. Apart from running devices and applications, its usage has been extended to managing infrastructure. The industry is primarily gaining from the ongoing cloud transition. The role of software is constantly evolving. With the continuation of remote work setup and mainstream adoption of the hybrid/flexible work model, the demand for voice and video communication software and productivity software is expected to increase exponentially. These trends bode well for industry participants like Cadence Design Systems CDNS, PTC PTC and Aspen Technology AZPN.Industry DescriptionThe Zacks Computer Software industry comprises companies that provide software applications related to cloud computing, electronic product designing, digital media and marketing, customer relationship management, on-premises and cloud-based database management, accounting and tax purposes, human capital management, cybersecurity and application performance monitoring and cloud-based enterprise communications platform among others. Some of the companies specialize in developing and marketing simulation software (like the computer-aided design or “CAD”, 3D modelling, product lifecycle management or “PLM”, data orchestration and experience creation), which are used by engineers, designers and researchers across a broad spectrum of industries like architecture, engineering and construction; product design and manufacturing; and digital media.3 Trends Shaping the Future of the Software IndustryHigher Spending on Software Aids Prospects: The industry’s prospects are bright, given higher spending by the enterprises on software procurement. Continued investment in big data and analytics and the ongoing adoption of software as a service or SaaS open up significant opportunities for industry players. Cloud offers a flexible and cost-effective platform for developing and testing applications. The deployment time is also much shorter compared with legacy systems. SaaS companies are expected to register strong top-line growth on a higher percentage of recurring revenues, subscription gross margin and a lower churn rate.Cloud Computing Adoption Gaining Traction: The increasing need to secure the cloud platforms, amid growing incidents of cyber-attacks and hacking, is driving demand for cyber security software. Enterprises are focused on rapid migration to cloud and DevOps technologies to achieve scalability and agility for software development and IT operations. This helps in delivering a flawless digital experience to clients. This trend has brought immense value to application and infrastructure performance monitoring. It is driving the demand for performance management monitoring tools that are scalable and suitable for cloud-based environments.Mainstream adoption of Hybrid/Remote Work to Drive Demand: The continuation of work-from-home and the mainstream adoption of the distributed workforce model are fueling demand for enterprise communication, workspace management and human capital management software solutions, among others. However, the evolving coronavirus situation particularly in China and the geopolitical instability due to the Russia-Ukraine war have aggravated the already strained global supply chain troubles. Increasing inflation could affect spending across small- and medium-sized businesses globally. The uncertainty in business visibility could dent the industry’s performance in the near term. Zacks Industry Rank Indicates Dim ProspectsThe Zacks Computer Software industry is housed within the broader Zacks Computer And Technology sector. It carries a Zacks Industry Rank #150, which places it in the bottom 41% of more than 253 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Despite the gloomy industry outlook, a few stocks have the potential to outperform the market. But before we present the top industry picks, it is worth taking a look at the industry’s shareholder returns and current valuation first.Industry Outperforms Sector But Lags S&P 500The Zacks Computer Software industry has outperformed the broader Zacks Computer and Technology sector but underperformed the S&P 500 Index in the past year.The industry has lost 7.3% over this period compared with the S&P 500 and the broader sector’ decline of 7% and 22.4%, respectively.One-Year Price PerformanceIndustry's Current ValuationOn the basis of forward 12-month P/E, which is a commonly used multiple for valuing software companies, we see that the industry is currently trading at 25.27X compared with the S&P 500’s 16.91X. It is also above the sector’s forward-12-month P/E of 19.61X.In the last five years, the industry has traded as high as 37.04X, as low as 22.63X and at the median of 27.56X, as the chart below shows.Forward 12-Month Price-to-Earnings (P/E) RatioForward 12-Month P/E Ratio3 Software Stocks to Snap Up Right NowAspen Technology: Bedford, MA-based Aspen Technology provides asset optimization software solutions. The company’s performance is gaining from improving customer demand. Its diversified product portfolio, especially its asset optimization and management software solutions and Asset Performance Management (APM) suite, is witnessing healthy momentum. Strategic acquisitions are likely to boost the top line going forward. The integration with Emerson’s OSI Inc and the Geological Simulation Software business bodes well in the long haul.In the past year, shares of Aspen Technology have moved up 35.3%. The consensus mark for this Zacks Rank #1 company’s fiscal 2022 earnings is pegged at $5.47 per share, up 3% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here. Price and Consensus: AZPNCadence Design Systems: Based in San Jose, CA, Cadence offers products and tools that help customers design electronic products. The company is well-positioned to gain from strength across segments like digital & signoff solutions and functional verification suite. Expanding product portfolios and frequent product launches are key catalysts.  In 2021, Cadence introduced 13 new products, including Cadence Helium Virtual and Hybrid Studio and Allegro X. Increasing investments in emerging trends like Internet-of-things (IoT), augmented and virtual reality (AR/VR) and autonomous vehicle sub-systems present significant growth opportunities for the company in the long haul. The recent acquisitions of Pointwise and NUMECA are expected to boost the top line.In the past year, shares of Cadence have returned 13.5%. The consensus mark for this Zacks Rank #2 company’s 2022 earnings is pegged at $3.89 per share, up 4.3% in the past 60 days.Price and Consensus: CDNSPTC: Boston, MA-based PTC provides software solutions and services globally that help manufacturing companies design, operate and manage products. The company’s top-line performance is driven by robust demand for products (digital transformation and SaaS) across all segments and regions. The company is also working toward accelerating the SaaS transition by increasing the capacity of its Atlas platform and improving its SaaS capabilities. PTC is witnessing robust adoption of Creo CAD and Windchill solutions. Strategic acquisitions have played a pivotal part in developing the company’s business in the last few years.The consensus mark for this Zacks Rank #2 company’s fiscal 2022 earnings is pegged at $4.46 per share, up 5.4% in the past 60 days.Price and Consensus: PTC  Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report Aspen Technology, Inc. (AZPN): Free Stock Analysis Report PTC Inc. (PTC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMay 25th, 2022

Kratos (KTOS) Buys ISR Provider for $80M, Boosts Portfolio

Kratos (KTOS) announces that it has acquired the engineering division of Southern Research, which tends to boost its position in the defense space. Kratos Defense & Security Solutions, Inc.KTOS recently revealed that it acquired Alabama-based Southern Research’s Engineering division ("SRE"). Considering the increased funding for the fiscal 2023 defense budget, this buyout should bolster Kratos’ growth in the defense market.The move comes in sync with the company’s intent to grow and expand its business through meaningful and strategic acquisitions.Details of the AcquisitionKratos acquired SRE for a consideration of $80 million, which comprises $75 million in cash and $5 million in the shares of Kratos common stock. KTOS aims to generate value through this opportunistic acquisition by acquiring its 54-acre campus with varied facilities and machinery and equipment to perform various tasks, which comprise 25% of the buyout price.Moreover, Kratos intends to carry out the operations of this newly formed business unit, Kratos SRE, under its Kratos Defense and Rocket Support Services Division.Benefits of the AcquisitionSRE’s expertise and excellence in developing multi-faceted defense products like hypersonic, space, missile, missile defense, strategic deterrence, propulsion systems and energy applications as well as the Intelligence Surveillance and Reconnaissance sensor must play a major catalyst for Kratos’ growth in the strategic weapon system arena.Moreover, the acquisition will aid the company in winning more contracts from the Pentagon, with the fiscal 2023 US defense budget proposing an investment of $773 billion for the Department of Defense (DoD), which implies a 4.1% increase from fiscal 2022’s enacted amount.Furthermore, the acquisition provides a platform for expansion for Kratos, with the customer acceptance of certain SRE products already in development and nearing completion.In the light of the aforementioned factors, we believe that the recent acquisition by the company is a prudent one as it is likely to be accretive to its organic growth trajectory going forward. This, in turn, may bolster its revenue generation prospects from a diverse range of products.Peer ProspectsConsidering the increased investment proposal for DoD in 2022, other defense majors that are likely to benefit are:Lockheed Martin LMT is the world’s largest defense contractor and the largest military aircraft manufacturer and the prime contractor of the F-35 Joint Strike Fighter Program. Other notable products include the F-16 Fighting Falcon and the C-130 Hercules.Lockheed Martin’s long-term earnings growth rate is pegged at 5.7%. LMT shares have returned 15.3% in the past year.Northrop Grumman NOC is one of the top U.S. defense contractors in terms of revenues. Its product line is well-positioned in high-priority categories, such as defense electronics, unmanned aircraft and missile defense. Some of its notable products are the B-2 Spirit strategic bomber, the E-8C Joint STARS surveillance aircraft, the RQ-4 Global Hawk and the T-38 Talon supersonic trainer.Northrop Grumman has a long-term earnings growth rate of 6.1%. NOC’s investors have gained 28.4% in the past year.Raytheon Technologies RTX researches, develops and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites and drones. Some of its defense product ranges include the Advanced Medium Range Air-to-Air Missile, the TOW Weapon System, U.S. Navy's SPY-6 Radars, Javelin Missile and the SkyCeptor missile.Raytheon Technologies has a long-term earnings growth rate of 10.5%. Shares of RTX have returned 7.7% in the past year.Price MovementIn the past year, shares of Kratos have declined 45.9% compared with the industry’s decline of 2.4%.Image Source: Zacks Investment ResearchZacks RankKratoscurrently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report Raytheon Technologies Corporation (RTX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMay 25th, 2022

Five Major Challenges Facing The Energy Industry

Five Major Challenges Facing The Energy Industry Authored by Irina Slav via OilPrice.com, Record-high prices at the pump, a looming diesel shortage right when the summer season is starting, and an uncooperative OPEC are probably reasons for many headaches among government officials around the world. Yet these are, in fact, manifestations of deeper problems in the energy industry. Underinvestment  In the past decade or so, Europe and, to a lesser but no less significant extent, North America, have made it their mission to reduce their reliance on fossil fuels and increase their reliance on renewable energy. This has spurred an investor exodus from oil and gas and the emergence of the so-called ESG investing trend. Money for new oil and gas developments has become more difficult to tap as banks join the ESG movement, and companies have had to cut back on spending. Saudi Arabia's oil minister warned that underinvestment in oil and gas would have a boomerang effect on consumers earlier this year, and he is not the only one. Many OPEC officials have made the same warning but, apparently, to no avail. After all, none other than the International Energy Agency said last year the world does not need new oil and gas exploration because we won't be needing any more new oil or gas supply. Of course, it was only a few months later that the IEA changed its tune, calling on OPEC to boost production, and it demonstrated one of the harsh realities of the energy industry: you cannot reverse a process that has been going on for years in a matter of months. Low discovery rates A topic that doesn't get much talked about, the average rate of new oil and gas discoveries is, in a way, comparable to the average conversion rate of solar panels: it is well below 30 percent. Bloomberg recently reported that three wells that Shell had drilled offshore Brazil had come up dry. The supermajor had paid $1 billion for drilling rights in the area and had spent three years drilling to come up empty-handed. Exxon had also failed to tap any significant oil reserves in its Brazilian blocks, which cost it $1.6 billion. The news highlights the risky nature of oil and gas exploration even in places like Brazil, which has been touted as the next hot spot in the industry, probably alongside Guyana. Brazil has become a magnet for supermajors because of its prolific presalt zone, but, as one local energy consultant told Bloomberg, the big discoveries have already been made—back when the discovery rate was close to 100 percent. The average successful discovery rate for the oil and gas industry is much lower than that, however, at 24.8 percent, according to Bloomberg. And there are fewer and fewer big discoveries to be made. Production cost inflation Broader inflation trends, in large part driven by soaring energy costs, have not passed the energy industry itself. In the U.S. shale patch, production costs have risen by some 20 percent. Two companies recently warned they would be reporting higher costs for their second quarters, Continental Resources and Hess Corp, and they are far from the only ones experiencing these higher costs. Shortages of raw materials such as frac sand and, earlier this year, steel piping for wells, are one reason for the production cost inflation, not just in the shale patch but everywhere where these raw materials are used in oil fields. A shortage of labor is a special problem for the U.S. shale patch, too, helping to drive production costs higher. Lingering supply chain problems from the pandemic are also in the mix. The bigger problem is that the industry is not expecting any respite in the coming months, either, as Argus recently reported, citing oil and gas executives. The production cost squeeze comes at a time when the federal government really needs more oil and gas, which is probably the worst possible time as it has discouraged drillers further from spending more on new drilling. Cyberattacks Cybersecurity has become a cause for concern in the energy industry in the past few years as cyberattacks have multiplied significantly. The Colonial Pipeline hacking really helped out things in perspective on the cybersecurity front, but little action followed, it seems. A brand new survey by DNV, the Norwegian risk assessment and quality assurance consultancy, revealed this week that the industry is quite uneasy about cyberthreats and, what's worse, not really prepared to handle them. According to the study, 84 percent of executives expect cyberattacks will lead to physical damage to energy assets, while more than half—54 percent—expect cyberattacks to result in the loss of human life. Some 74 percent of the respondents expect environmental damage as a result of a cyberattack. And only 30 percent know what to do if their company becomes a target of such an attack. Geopolitics The most chronic risk in the energy industry, geopolitics is never far away when prices start swinging wildly or, as is the case right now, remain stubbornly high. The prospect of an EU oil embargo on Russia, although dimming in the past few days, is one big bullish factor for oil prices. The lack of progress on Iran nuclear talks is another. And then there is, of course, OPEC's evident unwillingness to respond to calls from the West for more oil. Russia itself does not seem bothered by the embargo prospects at all. "The same oil that they [the EU countries] bought from us will have to be purchased elsewhere, and they will pay more, because the prices will definitely rise; and once the cost of delivery and freight increase, it will be necessary to invest in building the corresponding infrastructure," Deputy Prime Minister Alexander Novak said this week. Iran is meanwhile boosting its oil exports, which go almost exclusively to China. The country has signaled it will not agree to a deal with the U.S. unless the U.S. meets its demands, and it appears that the ball is now in Washington's court. In the meantime, China will have Iranian oil, but no one else will. For the U.S., the price problem has become so dire that now President Biden is seeking a meeting with the Saudi Crown Prince Mohammed, whom he has consistently refused to communicate with, instead communicating with his father, King Salman. Biden has also been openly critical of MbS for his alleged role in the killing of a dissident Saudi journalist, calling the Kingdom a "pariah" with "no redeeming social value." Geopolitics can be awkward. Tyler Durden Mon, 05/23/2022 - 21:40.....»»

Category: blogSource: zerohedgeMay 23rd, 2022

How to boost cybersecurity with managed print services

Printing is essential for most businesses. From documents to flyers, newsletters, and annual reports, most commercial enterprises devote a significant part of their budgets to printing. Most modern printers are connected to the business’ network and are therefore a potential gateway for hackers. That’s why printer security is one of the most critical ways to secure your office. Partnering with a managed print services (MPS) provider can help. What is managed print services? A managed print….....»»

Category: topSource: bizjournalsMay 23rd, 2022

How to boost cybersecurity with managed print services

Printing is essential for most businesses. From documents to flyers, newsletters, and annual reports, most commercial enterprises devote a significant part of their budgets to printing. Most modern printers are connected to the business’ network and are therefore a potential gateway for hackers. That’s why printer security is one of the most critical ways to secure your office. Partnering with a managed print services (MPS) provider can help. What is managed print services? A managed print….....»»

Category: topSource: bizjournalsMay 23rd, 2022

Morgan Stanley: We Are About To Find Out The Cost Of Remodeling A Global Economy

Morgan Stanley: We Are About To Find Out The Cost Of Remodeling A Global Economy By Michael Zezas, Head of Public Policy Research at Morgan Stanley What’s the cost of remodeling a global economy? What’s the benefit? Ready or not, we’re about to find out. Why? Because geopolitical events are accelerating important secular trends: The “slowbalization” of economic and national interests eating away at globalization; and The shift from a single economic power base and set of rules to a “multipolar world.” While the sell-off in risk markets is getting attention now, our conversations with corporate decision-makers and policy-makers are increasingly taken up with how to deal with these two important and overlapping transitions. These decisions have long-term consequences, so investors need to understand how their choices may play out. Our latest Blue Paper is a guide to navigating these secular trends, with frameworks we developed in 2019 ("The Slowbalization Playbook") and 2020 ("Investing for a Multipolar World", both reports are available to zerohedge professional subscribers). For the sake of your Sunday, here’s what you need to know, in brief: Geopolitics are accelerating slowbalization and the multipolar world, providing more incentives to near-shore or “friend-shore” supply chains: To be clear, these trends didn’t start with Russia invading Ukraine or even US/China trade tensions. Services trade was already outpacing goods trade, and automation has been reducing the primacy of low-cost labor. But the incentives for companies and policy-makers to rethink globalization have been amplified by recent geopolitical developments. A bipartisan consensus emerged in the US around an existential need to outcompete China. The result in 2018 was tariff and non-tariff barriers (i.e., export restrictions), the latter meant to protect the US advantage in key technologies. We expect these barriers to endure and boost costs beyond the directly taxed sectors, like semis, to industries like auto batteries and AI that are adopting these new technologies. The pandemic served painful notice for some sectors that paying up for ”just in case” instead of “just in time” inventories might be the only way to avoid the supply chain bottlenecks caused by lockdowns, mask mandates, or other restrictions. And Russia’s invasion of Ukraine and the subsequent sanctions cut off exports of energy and agricultural products to Europe and other parts of the globe. Relying on allies rather than rivals yields supply chain security. With transitions come costs and lingering inflation… Consider that Europe now is eager to build infrastructure to import natural gas from the US to avoid reliance on Russia. Or consider a hypothetical American multinational moving some of its production out of China to avoid new US export controls. This shift comes not only with a cost but also fresh uncertainties around labor and infrastructure in the new locale. Our equity research colleagues believe that profit margins could face headwinds in sectors like European chemicals, European and Asian midstream and downstream natural gas utilities, auto OEMs, consumer staples, portions of leisure, and transportation. ...but transitions also drive opportunity. All this "geopolitical capex" has to drive capital somewhere. Some geographies and sectors are likely beneficiaries: For US and European companies, friend-shoring is more attractive in countries with larger labor pools, competitive wage costs, and trade agreements with key end markets. In varying ways and to varying degrees, Mexico, India, and Turkey are recipient candidates. And regardless of the location, building these new supply chains will almost surely drive a pick-up in demand – and profits – in sectors like semiconductor capital equipment, automation, clean tech, defense/cybersecurity, industrial gases, cap goods, and metals/mining. Of course, this transition is a multi-year project. And as in any remodel, we expect many hidden costs and benefits to emerge along the way. We’ll keep updating our playbook, and you, as we move through the process. Tyler Durden Sun, 05/22/2022 - 14:40.....»»

Category: smallbizSource: nytMay 22nd, 2022