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Category: worldSource: nytMay 25th, 2021

Futures Slide Alongside Cryptocurrencies Amid China Crackdown

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

Category: blogSource: zerohedgeSep 24th, 2021

DICK"S Sporting (DKS) Collaborate With WNBA as Retail Partner

DICK'S Sporting (DKS) becomes the official retail partner of WBNA, in sync with its efforts to focus on female athletes throughout 2021. The move will provide a boost to WBNA merchandise sales. DICK’S Sporting Goods, Inc. DKS has inked a multi-year deal to become the official retail partner of the Women's National Basketball Association (“WNBA”). The company in association with WNBA will help to inspire and connect with female athletes of all ages. The move also makes DICK’S Sporting the largest national retailer for WNBA merchandise.It will help expand the visibility of WNBA teams and players across the United States through new merchandise and an assortment of sports apparel and equipment. Customers will now have access to the team’s new NIKE NKE jerseys, Wilson WNBA basketballs, t-shirts and WNBA Logowoman hoodies in certain DICK'S Sporting locations as well as online and the mobile app along with all 12 WNBA markets.In sync with its efforts to focus on female athletes throughout 2021, DICK’S Sporting earlier arranged 15,000 gifts of sports equipment for young girls at certain namesake stores via the Giving Truck. The truck crossed Boston, Philadelphia, Washington DC, Pittsburgh, Cleveland, Indianapolis, Kansas City and Knoxville entire July.The Giving Truck started in December 2020, distributing 10,000 pieces of sports equipment to youth sports organizations, followed by a second tour in March, offering 10,000 pieces of equipment to youth baseball and softball athletes. To date, the company, through the initiative, has provided 20,000 gifts across 16 cities nationwide.With such endeavors, management believes that young girls will return to the type of sports they love and keep playing without any financial burden. This, in turn, is likely to ensure the continuation of youth sports across the United States.What Else?DICK’S Sporting has managed to keep its stellar show on, courtesy of increased consumer spending and continued online strength. E-commerce sales surged 111% on a two-year basis, representing nearly 18% of net sales for second-quarter fiscal 2021, up from 12% in second-quarter fiscal 2019. This was mainly driven by strong online demand and improved omni-channel capabilities, including curbside pickup services and BOPIS. Alongside services like in-store and curbside pickup; reduced promotions, faster delivery and a better checkout experience contributed to quarterly growth.Its mobile platform remains a key growth driver, accounting for more than 50% of online sales for the first half of 2021. As part of its long-term plan, the company aims to make significant investments in e-commerce, technology, store payroll, Team Sports and private brands.On the store-front, management recently revealed plans to open its first Public Lands store in Pittsburgh, PA, this September and launched another Going, Going, Gone! off-price concept store in Royal Palm Beach, FL.Prior to this, the company opened its second DICK'S House of Sport in Knoxville, TN, two redesigned Golf Galaxy locations, three warehouse stores and experiential in-store Soccer Shops in certain stores in June. Management opened one namesake store, one warehouse store and two new off-price concept stores — Going, Going, Gone! — in May.In April, it launched its first-ever DICK'S House of Sport at Victor, NY, along with two warehouse stores and soccer shops. In fiscal 2021, management plans to open six DICK'S Sporting Goods stores and eight specialty concept stores.DICK’S Sporting has been gaining from strength in its core categories, including hardlines, apparel and footwear. It also noted that the third quarter of fiscal 2021 and the back-to-school season started on a solid note. Management raised its fiscal 2021 view.Fiscal 2021 sales are expected to be $11,520-$11,720 million, up from the previously mentioned $10,515-$10,806 million. Same-store sales are likely to grow 18-20%, up from the earlier stated 8-11%. Adjusted earnings are now envisioned to be $12.45-$12.95, which reflect a sharp improvement from $8-$8.70 per share mentioned earlier.In the past three months, shares of this Zacks Rank #3 (Hold) stock have risen 40.8% against the industry’s decline of 15.3%. Image Source: Zacks Investment Research Better-Ranked Stocks in the Retail SpaceAbercrombie & Fitch ANF presently sports a Zacks Rank #1 (Strong Buy). It has an expected long-term earnings growth rate of 18%. You can see the complete list of today’s Zacks #1 Rank stocks here.The Children’s Place PLCE has a long-term expected earnings growth rate of 8% and it currently flaunts a Zacks Rank #1. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report DICKS Sporting Goods, Inc. (DKS): Free Stock Analysis Report The Childrens Place, Inc. (PLCE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

Futures Bounce On Evergrande Reprieve With Fed Looming

Futures Bounce On Evergrande Reprieve With Fed Looming Despite today's looming hawkish FOMC meeting in which Powell is widely expected to unveil that tapering is set to begin as soon as November and where the Fed's dot plot may signal one rate hike in 2022, futures climbed as investor concerns over China's Evergrande eased after the property developer negotiated a domestic bond payment deal. Commodities rallied while the dollar was steady. Contracts on the S&P 500 and Nasdaq 100 flipped from losses to gains as China’s central bank boosted liquidity when it injected a gross 120BN in yuan, the most since January... ... and investors mulled a vaguely-worded statement from the troubled developer about an interest payment.  S&P 500 E-minis were up 23.0 points, or 0.53%, at 7:30 a.m. ET. Dow E-minis were up 199 points, or 0.60%, and Nasdaq 100 E-minis were up 44.00 points, or 0.29%. Among individual stocks, Fedex fell 5.8% after the delivery company cut its profit outlook on higher costs and stalled growth in shipments. Morgan Stanley says it sees the company’s 1Q issues getting “tougher from here.” Commodity-linked oil and metal stocks led gains in premarket trade, while a slight rise in Treasury yields supported major banks. However, most sectors were nursing steep losses in recent sessions. Here are some of the biggest U.S. movers: Adobe (ADBE US) down 3.1% after 3Q update disappointed the high expectations of investors, though the broader picture still looks solid, Morgan Stanley said in a note Freeport McMoRan (FCX US), Cleveland- Cliffs (CLF US), Alcoa (AA US) and U.S. Steel (X US) up 2%-3% premarket, following the path of global peers as iron ore prices in China rallied Aethlon Medical (AEMD US) and Exela Technologies (XELAU US) advance along with other retail traders’ favorites in the U.S. premarket session. Aethlon jumps 21%; Exela up 8.3% Other so-called meme stocks also rise: ContextLogic +1%; Clover Health +0.9%; Naked Brand +0.9%; AMC +0.5% ReWalk Robotics slumps 18% in U.S. premarket trading, a day after nearly doubling in value Stitch Fix (SFIX US) rises 15.7% in light volume after the personal styling company’s 4Q profit and sales blew past analysts’ expectations Hyatt Hotels (H US) seen opening lower after the company launches a seven-million-share stock offering Summit Therapeutics (SMMT US) shares fell as much as 17% in Tuesday extended trading after it said the FDA doesn’t agree with the change to the primary endpoint that has been implemented in the ongoing Phase III Ri-CoDIFy studies when combining the studies Marin Software (MRIN US) surged more than 75% Tuesday postmarket after signing a new revenue-sharing agreement with Google to develop its enterprise technology platforms and software products The S&P 500 had fallen for 10 of the past 12 sessions since hitting a record high, as fears of an Evergrande default exacerbated seasonally weak trends and saw investors pull out of stocks trading at lofty valuations. The Nasdaq fell the least among its peers in recent sessions, as investors pivoted back into big technology names that had proven resilient through the pandemic. Focus now turns to the Fed's decision, due at 2 p.m. ET where officials are expected to signal a start to scaling down monthly bond purchases (see our preview here).  The Fed meeting comes after a period of market volatility stoked by Evergrande’s woes. China’s wider property-sector curbs are also feeding into concerns about a slowdown in the economic recovery from the pandemic. “Chair Jerome Powell could hint at the tapering approaching shortly,” said Sébastien Barbé, a strategist at Credit Agricole CIB. “However, given the current uncertainty factors (China property market, Covid, pace of global slowdown), the Fed should remain cautious when it comes to withdrawing liquidity support.” Meanwhile, confirming what Ray Dalio said that the taper will just bring more QE, Governing Council member Madis Muller said the  European Central Bank may boost its regular asset purchases once the pandemic-era emergency stimulus comes to an end. “Dovish signals could unwind some of the greenback’s gains while offering relief to stock markets,” Han Tan, chief market analyst at Exinity Group, wrote in emailed comments. A “hawkish shift would jolt markets, potentially pushing Treasury yields and the dollar past the upper bound of recent ranges, while gold and equities would sell off hunting down the next levels of support.” China avoided a major selloff as trading resumed following a holiday, after the country’s central bank boosted its injection of short-term cash into the financial system. MSCI’s Asia-Pacific index declined for a third day, dragged lower by Japan. Stocks were also higher in Europe. Basic resources - which bounced from a seven month low - and energy were among the leading gainers in the Stoxx Europe 600 index as commodity prices steadied after Beijing moved to contain fears of a spiraling debt crisis. Entain Plc rose more than 7%, extending Tuesday’s gain as it confirmed it received a takeover proposal from DraftKings Inc. Peer Flutter Entertainment Plc climbed after settling a legal dispute.  Here are some of the biggest European movers today: Entain shares jump as much as 11% after DraftKings Inc. offered to acquire the U.K. gambling company for about $22.4 billion. Vivendi rises as much as 3.1% in Paris, after Tuesday’s spinoff of Universal Music Group. Legrand climbs as much as 2.1% after Exane BNP Paribas upgrades to outperform and raises PT to a Street-high of EU135. Orpea shares falls as much as 2.9%, after delivering 1H results that Jefferies (buy) says were a “touch” below consensus. Bechtle slides as much as 5.1% after Metzler downgrades to hold from buy, saying persistent supply chain problems seem to be weighing on growth. Sopra Steria drops as much as 4.1% after Stifel initiates coverage with a sell, citing caution on company’s M&A strategy Despite the Evergrande announcement, Asian stocks headed for their longest losing streak in more than a month amid continued China-related concerns, with traders also eying policy decisions from major central banks. The MSCI Asia Pacific Index dropped as much as 0.7% in its third day of declines, with TSMC and Keyence the biggest drags. China’s CSI 300 tumbled as much as 1.9% as the local market reopened following a two-day holiday. However, the gauge came off lows after an Evergrande unit said it will make a bond interest payment and as China’s central bank boosted liquidity.  Taiwan’s equity benchmark led losses in Asia on Wednesday, dragged by TSMC after a two-day holiday, while markets in Hong Kong and South Korea were closed. Key stock gauges in Australia, Indonesia and Vietnam rose “A liquidity injection from the People’s Bank of China accompanied the Evergrande announcement, which only served to bolster sentiment further,” according to DailyFX’s Thomas Westwater and Daniel Dubrovsky. “For now, it appears that market-wide contagion risk linked to a potential Evergrande collapse is off the table.” Japanese equities fell for a second day amid global concern over China’s real-estate sector, as the Bank of Japan held its key stimulus tools in place while flagging pressures on the economy. Electronics makers were the biggest drag on the Topix, which declined 1%. Daikin and Fanuc were the largest contributors to a 0.7% loss in the Nikkei 225. The BOJ had been expected to maintain its policy levers ahead of next week’s key ruling party election. Traders are keenly awaiting the Federal Reserve’s decision due later for clues on the U.S. central banks plan for tapering stimulus. “Markets for some time have been convinced that the BOJ has reached the end of the line on normalization and will remain in a holding pattern on policy until at least April 2023 when Governor Kuroda is scheduled to leave,” UOB economist Alvin Liew wrote in a note. “Attention for the BOJ will now likely shift to dealing with the long-term climate change issues.” In the despotic lockdown regime that is Australia, the S&P/ASX 200 index rose 0.3% to close at 7,296.90, reversing an early decline in a rally led by mining and energy stocks. Banks closed lower for the fourth day in a row. Champion Iron was among the top performers after it was upgraded at Citi. IAG was among the worst performers after an earthquake caused damage to buildings in Melbourne. In New Zealand, the S&P/NZX 50 index rose 0.3% to 13,215.80 In FX, commodity currencies rallied as concerns about China Evergrande Group’s debt troubles eased as China’s central bank boosted liquidity and investors reviewed a statement from the troubled developer about an interest payment. Overnight implied volatility on the pound climbed to the highest since March ahead of Bank of England’s meeting on Thursday. The British pound weakened after Business Secretary Kwasi Kwarteng warnedthat people should prepare for longer-term high energy prices amid a natural-gas shortage that sent power costs soaring. Several U.K. power firms have stopped taking in new clients as small energy suppliers struggle to meet their previous commitments to sell supplies at lower prices. Overnight volatility in the euro rises above 10% for the first time since July ahead of the Federal Reserve’s monetary policy decision announcement. The Aussie jumped as much as 0.5% as iron-ore prices rebounded. Spot surged through option-related selling at 0.7240 before topping out near 0.7265 strikes expiring Wednesday, according to Asia- based FX traders.  Elsewhere, the yen weakened and commodity-linked currencies such as the Australian dollar pushed higher. In rates, the dollar weakened against most of its Group-of-10 peers. Treasury futures were under modest pressure in early U.S. trading, leaving yields cheaper by ~1.5bp from belly to long-end of the curve. The 10-year yield was at ~1.336% steepening the 2s10s curve by ~1bp as the front-end was little changed. Improved risk appetite weighed; with stock futures have recovering much of Tuesday’s losses as Evergrande concerns subside. Focal point for Wednesday’s session is FOMC rate decision at 2pm ET.   FOMC is expected to suggest it will start scaling back asset purchases later this year, while its quarterly summary of economic projections reveals policy makers’ expectations for the fed funds target in coming years in the dot-plot update; eurodollar positions have emerged recently that anticipate a hawkish shift Bitcoin dropped briefly below $40,000 for the first time since August amid rising criticism from regulators, before rallying as the mood in global markets improved. In commodities, Iron ore halted its collapse and metals steadied. Oil advanced for a second day. Bitcoin slid below $40,000 for the first time since early August before rebounding back above $42,000.   To the day ahead now, and the main highlight will be the aforementioned Federal Reserve decision and Chair Powell’s subsequent press conference. Otherwise on the data side, we’ll get US existing home sales for August, and the European Commission’s advance consumer confidence reading for the Euro Area in September. Market Snapshot S&P 500 futures up 0.4% to 4,362.25 STOXX Europe 600 up 0.5% to 461.19 MXAP down 0.7% to 199.29 MXAPJ down 0.4% to 638.39 Nikkei down 0.7% to 29,639.40 Topix down 1.0% to 2,043.55 Hang Seng Index up 0.5% to 24,221.54 Shanghai Composite up 0.4% to 3,628.49 Sensex little changed at 59,046.84 Australia S&P/ASX 200 up 0.3% to 7,296.94 Kospi up 0.3% to 3,140.51 Brent Futures up 1.5% to $75.47/bbl Gold spot up 0.0% to $1,775.15 U.S. Dollar Index little changed at 93.26 German 10Y yield rose 0.6 bps to -0.319% Euro little changed at $1.1725 Top Overnight News from Bloomberg What would it take to knock the U.S. recovery off course and send Federal Reserve policy makers back to the drawing board? Not much — and there are plenty of candidates to deliver the blow The European Central Bank will discuss boosting its regular asset purchases once the pandemic-era emergency stimulus comes to an end, but any such increase is uncertain, Governing Council member Madis Muller said Investors seeking hints about how Beijing plans to deal with China Evergrande Group’s debt crisis are training their cross hairs on the central bank’s liquidity management A quick look at global markets courtesy of Newsquawk Asian equity markets traded mixed as caution lingered ahead of upcoming risk events including the FOMC, with participants also digesting the latest Evergrande developments and China’s return to the market from the Mid-Autumn Festival. ASX 200 (+0.3%) was positive with the index led higher by the energy sector after a rebound in oil prices and as tech also outperformed, but with gains capped by weakness in the largest-weighted financials sector including Westpac which was forced to scrap the sale of its Pacific businesses after failing to secure regulatory approval. Nikkei 225 (-0.7%) was subdued amid the lack of fireworks from the BoJ announcement to keep policy settings unchanged and ahead of the upcoming holiday closure with the index only briefly supported by favourable currency outflows. Shanghai Comp. (+0.4%) was initially pressured on return from the long-weekend and with Hong Kong markets closed, but pared losses with risk appetite supported by news that Evergrande’s main unit Hengda Real Estate will make coupon payments due tomorrow, although other sources noted this is referring to the onshore bond payments valued around USD 36mln and that there was no mention of the offshore bond payments valued at USD 83.5mln which are also due tomorrow. Meanwhile, the PBoC facilitated liquidity through a CNY 120bln injection and provided no surprises in keeping its 1-year and 5-year Loan Prime Rates unchanged for the 17th consecutive month at 3.85% and 4.65%, respectively. Finally, 10yr JGBs were flat amid the absence of any major surprises from the BoJ policy announcement and following the choppy trade in T-notes which were briefly pressured in a knee-jerk reaction to the news that Evergrande’s unit will satisfy its coupon obligations tomorrow, but then faded most of the losses as cautiousness prevailed. Top Asian News Gold Steady as Traders Await Outcome of Fed Policy Meeting Evergrande Filing on Yuan Bond Interest Leaves Analysts Guessing Singapore Category E COE Price Rises to Highest Since April 2014 Asian Stocks Fall for Third Day as Focus Turns to Central Banks European equities (Stoxx 600 +0.5%) trade on a firmer footing in the wake of an encouraging APAC handover. Focus overnight was on the return of Chinese participants from the Mid-Autumn Festival and news that Evergrande’s main unit, Hengda Real Estate will make coupon payments due tomorrow; however, we await indication as to whether they will meet Thursday’s offshore payment deadline as well. Furthermore, the PBoC facilitated liquidity through a CNY 120bln injection whilst keeping its 1-year and 5-year Loan Prime Rates unchanged (as expected). Note, despite gaining yesterday and today, thus far, the Stoxx 600 is still lower to the tune of 0.7% on the week. Stateside, futures are also trading on a firmer footing ahead of today’s FOMC policy announcement, at which, market participants will be eyeing any clues for when the taper will begin and digesting the latest dot plot forecasts. Furthermore, the US House voted to pass the bill to fund the government through to December 3rd and suspend the debt limit to end-2022, although this will likely be blocked by Senate Republicans. Back to Europe, sectors are mostly firmer with outperformance in Basic Resources and Oil & Gas amid upside in the metals and energy complex. Elsewhere, Travel & Leisure is faring well amid further upside in Entain (+6.1%) with the Co. noting it rejected an earlier approach from DraftKings at GBP 25/shr with the new offer standing at GBP 28/shr. Additionally for the sector, Flutter Entertainment (+4.1%) are trading higher after settling the legal dispute between the Co. and Commonwealth of Kentucky. Elsewhere, in terms of deal flow, Iliad announced that it is to acquire UPC Poland for around USD 1.8bln. Top European News Energy Cost Spike Gets on EU Ministers’ Green Deal Agenda Travel Startup HomeToGo Gains in Frankfurt Debut After SPAC Deal London Stock Exchange to Shut Down CurveGlobal Exchange EU Banks Expected to Add Capital for Climate Risk, EBA Says In FX, trade remains volatile as this week’s deluge of global Central Bank policy meetings continues to unfold amidst fluctuations in broad risk sentiment from relatively pronounced aversion at various stages to a measured and cautious pick-up in appetite more recently. Hence, the tide is currently turning in favour of activity, cyclical and commodity currencies, albeit tentatively in the run up to the Fed, with the Kiwi and Aussie trying to regroup on the 0.7000 handle and 0.7350 axis against their US counterpart, and the latter also striving to shrug off negative domestic impulses like a further decline below zero in Westpac’s leading index and an earthquake near Melbourne. Next up for Nzd/Usd and Aud/Usd, beyond the FOMC, trade data and preliminary PMIs respectively. DXY/CHF/EUR/CAD - Notwithstanding the overall improvement in market tone noted above, or another major change in mood and direction, the Dollar index appears to have found a base just ahead of 93.000 and ceiling a similar distance away from 93.500, as it meanders inside those extremes awaiting US existing home sales that are scheduled for release before the main Fed events (policy statement, SEP and post-meeting press conference from chair Powell). Indeed, the Franc, Euro and Loonie have all recoiled into tighter bands vs the Greenback, between 0.9250-26, 1.1739-17 and 1.2831-1.2770, but with the former still retaining an underlying bid more evident in the Eur/Chf cross that is consolidating under 1.0850 and will undoubtedly be acknowledged by the SNB tomorrow. Meanwhile, Eur/Usd has hardly reacted to latest ECB commentary from Muller underpinning that the APP is likely to be boosted once the PEPP envelope is closed, though Usd/Cad is eyeing a firm rebound in oil prices in conjunction with hefty option expiry interest at the 1.2750 strike (1.8 bn) that may prevent the headline pair from revisiting w-t-d lows not far beneath the half round number. GBP/JPY - The major laggards, as Sterling slips slightly further beneath 1.3650 against the Buck to a fresh weekly low and Eur/Gbp rebounds from circa 0.8574 to top 0.8600 on FOMC day and T-1 to super BoE Thursday. Elsewhere, the Yen has lost momentum after peaking around 109.12 and still not garnering sufficient impetus to test 109.00 via an unchanged BoJ in terms of all policy settings and guidance, as Governor Kuroda trotted out the no hesitation to loosen the reins if required line for the umpteenth time. However, Usd/Jpy is holding around 109.61 and some distance from 1.1 bn option expiries rolling off between 109.85-110.00 at the NY cut. SCANDI/EM - Brent’s revival to Usd 75.50+/brl from sub-Usd 73.50 only yesterday has given the Nok another fillip pending confirmation of a Norges Bank hike tomorrow, while the Zar has regained some poise with the aid of firmer than forecast SA headline and core CPI alongside a degree of retracement following Wednesday’s breakdown of talks on a pay deal for engineering workers that prompted the union to call a strike from early October. Similarly, the Cnh and Cny by default have regrouped amidst reports that the CCP is finalising details to restructure Evergrande into 3 separate entities under a plan that will see the Chinese Government take control. In commodities, WTI and Brent are firmer this morning though once again fresh newsflow for the complex has been relatively slim and largely consisting of gas-related commentary; as such, the benchmarks are taking their cue from the broader risk tone (see equity section). The improvement in sentiment today has brought WTI and Brent back in proximity to being unchanged on the week so far as a whole; however, the complex will be dictated directly by the EIA weekly inventory first and then indirectly, but perhaps more pertinently, by today’s FOMC. On the weekly inventories, last nights private release was a larger than expected draw for the headline and distillate components, though the Cushing draw was beneath expectations; for today, consensus is a headline draw pf 2.44mln. Moving to metals where the return of China has seen a resurgence for base metals with LME copper posting upside of nearly 3.0%, for instance. Albeit there is no fresh newsflow for the complex as such, so it remains to be seen how lasting this resurgence will be. Finally, spot gold and silver are firmer but with the magnitude once again favouring silver over the yellow metal. US Event Calendar 10am: Aug. Existing Home Sales MoM, est. -1.7%, prior 2.0% 2pm: Sept. FOMC Rate Decision (Lower Boun, est. 0%, prior 0% DB's Jim Reid concludes the overnight wrap All eyes firmly on China this morning as it reopens following a 2-day holiday. As expected the indices there have opened lower but the scale of the declines are being softened by the PBoC increasing its short term cash injections into the economy. They’ve added a net CNY 90bn into the system. On Evergrande, we’ve also seen some positive headlines as the property developers’ main unit Hengda Real Estate Group has said that it will make coupon payment for an onshore bond tomorrow. However, the exchange filing said that the interest payment “has been resolved via negotiations with bondholders off the clearing house”. This is all a bit vague and doesn’t mention the dollar bond at this stage. Meanwhile, Bloomberg has reported that Chinese authorities have begun to lay the groundwork for a potential restructuring that could be one of the country’s biggest, assembling accounting and legal experts to examine the finances of the group. All this follows news from Bloomberg yesterday that Evergrande missed interest payments that had been due on Monday to at least two banks. In terms of markets the CSI (-1.11%), Shanghai Comp (-0.29%) and Shenzhen Comp (-0.53%) are all lower but have pared back deeper losses from the open. We did a flash poll in the CoTD yesterday (link here) and after over 700 responses in a couple of hours we found only 8% who we thought Evergrande would still be impacting financial markets significantly in a month’s time. 24% thought it would be slightly impacting. The other 68% thought limited or no impact. So the world is relatively relaxed about contagion risk for now. The bigger risk might be the knock on impact of weaker Chinese growth. So that’s one to watch even if you’re sanguine on the systemic threat. Craig Nicol in my credit team did a good note yesterday (link here) looking at the contagion risk to the broader HY market. I thought he summed it up nicely as to why we all need to care one way or another in saying that “Evergrande is the largest corporate, in the largest sector, of the second largest economy in the world”. For context AT&T is the largest corporate borrower in the US market and VW the largest in Europe. Turning back to other Asian markets now and the Nikkei (-0.65%) is down but the Hang Seng (+0.51%) and Asx (+0.58%) are up. South Korean markets continue to remain closed for a holiday. Elsewhere, yields on 10y USTs are trading flattish while futures on the S&P 500 are up +0.10% and those on the Stoxx 50 are up +0.21%. Crude oil prices are also up c.+1% this morning. In other news, the Bank of Japan policy announcement overnight was a non-event as the central bank maintained its yield curve target while keeping the policy rate and asset purchases plan unchanged. The central bank also unveiled more details of its green lending program and said that it would immediately start accepting applications and would begin making the loans in December. The relatively calm Asian session follows a stabilisation in markets yesterday following their rout on Monday as investors looked forward to the outcome of the Fed’s meeting later today. That said, it was hardly a resounding performance, with the S&P 500 unable to hold on to its intraday gains and ending just worse than unchanged after the -1.70% decline the previous day as investors remained vigilant as to the array of risks that continue to pile up on the horizon. One of these is in US politics and legislators seem no closer to resolving the various issues surrounding a potential government shutdown at the end of the month, along with a potential debt ceiling crisis in October, which is another flashing alert on the dashboard for investors that’s further contributing to weaker sentiment right now. Looking ahead now, today’s main highlight will be the latest Federal Reserve decision along with Chair Powell’s subsequent press conference, with the policy decision out at 19:00 London time. Markets have been on edge for any clues about when the Fed might begin to taper asset purchases, but concern about tapering actually being announced at this meeting has dissipated over recent weeks, particularly after the most recent nonfarm payrolls in August came in at just +235k, and the monthly CPI print also came in beneath consensus expectations for the first time since November. In terms of what to expect, our US economists write in their preview (link here) that they see the statement adopting Chair Powell’s language that a reduction in the pace of asset purchases is appropriate “this year”, so long as the economy remains on track. They see Powell maintaining optionality about the exact timing of that announcement, but they think that the message will effectively be that the bar to pushing the announcement beyond November is relatively high in the absence of any material downside surprises. This meeting also sees the release of the FOMC’s latest economic projections and the dot plot, where they expect there’ll be an upward drift in the dots that raises the number of rate hikes in 2023 to 3, followed by another 3 increases in 2024. Back to yesterday, and as mentioned US equity markets fell for a second straight day after being unable to hold on to earlier gains, with the S&P 500 slightly lower (-0.08%). High-growth industries outperformed with biotech (+0.38%) and semiconductors (+0.18%) leading the NASDAQ (+0.22%) slightly higher, however the Dow Jones (-0.15%) also struggled. Europe saw a much stronger performance though as much of the US decline came after Europe had closed. The STOXX 600 gained +1.00% to erase most of Monday’s losses, with almost every sector in the index ending the day in positive territory. With risk sentiment improving for much of the day yesterday, US Treasuries sold off slightly and by the close of trade yields on 10yr Treasuries were up +1.2bps to 1.3226%, thanks to a +1.8bps increase in real yields. However, sovereign bonds in Europe told a different story as yields on 10yr bunds (-0.3bps), OATs (-0.3bps) and BTPs (-1.9bps) moved lower. Other safe havens including gold (+0.59%) and silver (+1.02%) also benefited, but this wasn’t reflected across commodities more broadly, with Bloomberg’s Commodity Spot Index (-0.30%) losing ground for a 4th consecutive session. Democratic Party leaders plan to vote on the Senate-approved $500bn bipartisan infrastructure bill next Monday, even with no resolution to the $3.5tr budget reconciliation measure that encompasses the remainder of the Biden Administration’s economic agenda. Democrats continue to work on the reconciliation measure but have turned their attention to the debt ceiling and government funding bills.Congress has fewer than two weeks before the current budget expires – on Oct 1 – to fund the government and raise the debt ceiling. Republicans yesterday noted that the Democrats could raise the ceiling on their own through the reconciliation process, with many saying that they would not be offering their support to any funding bill. Democrats continue to push for a bipartisan bill to raise the debt ceiling, pointing to their votes during the Trump administration. If Democrats are forced to tie the debt ceiling and funding bills to budget reconciliation, it could limit how much of the $3.5 trillion bill survives the last minute negotiations between progressives and moderates. More to come over the next 10 days. Staying on the US, there was an important announcement in President Biden’s speech at the UN General Assembly, as he said that he would work with Congress to double US funding to poorer nations to deal with climate change. That comes as UK Prime Minister Johnson (with the UK hosting the COP26 summit in less than 6 weeks’ time) has been lobbying other world leaders to find the $100bn per year that developed economies pledged by 2020 to support developing countries as they reduce their emissions and deal with climate change. In Germany, there are just 4 days to go now until the federal election, and a Forsa poll out yesterday showed a slight narrowing in the race, with the centre-left SPD remaining on 25%, but the CDU/CSU gained a point on last week to 22%, which puts them within the +/- 2.5 point margin of error. That narrowing has been seen in Politico’s Poll of Polls as well, with the race having tightened from a 5-point SPD lead over the CDU/CSU last week to a 3-point one now. Turning to the pandemic, Johnson & Johnson reported that their booster shot given 8 weeks after the first offered 100% protection against severe disease, 94% protection against symptomatic Covid in the US, and 75% against symptomatic Covid globally. Speaking of boosters, Bloomberg reported that the FDA was expected to decide as soon as today on a recommendation for Pfizer’s booster vaccine. That follows an FDA advisory panel rejecting a booster for all adults last Friday, restricting the recommendation to those over-65 and other high-risk categories. Staying with the US and vaccines, President Biden announced that the US was ordering 500mn doses of the Pfizer vaccine to be exported to the rest of the world. On the data front, there were some strong US housing releases for August, with housing starts up by an annualised 1.615m (vs. 1.55m expected), and building permits up by 1.728m (vs. 1.6m expected). Separately, the OECD released their Interim Economic Outlook, which saw them upgrade their inflation expectations for the G20 this year to +3.7% (up +0.2ppts from May) and for 2022 to +3.9% (up +0.5ppts from May). Their global growth forecast saw little change at +5.7% in 2021 (down a tenth) and +4.5% for 2022 (up a tenth). To the day ahead now, and the main highlight will be the aforementioned Federal Reserve decision and Chair Powell’s subsequent press conference. Otherwise on the data side, we’ll get US existing home sales for August, and the European Commission’s advance consumer confidence reading for the Euro Area in September. Tyler Durden Wed, 09/22/2021 - 08:05.....»»

Category: blogSource: zerohedgeSep 22nd, 2021

Nexters Shows Record High Bookings and Revenue in Q2 and First Half of 2021

LIMASSOL, Cyprus, Sept. 22, 2021 (GLOBE NEWSWIRE) -- Nexters Inc. (NASDAQ:GDEV), an international game development company which strives to introduce the joy of core gaming experiences to casual players, today announced its unaudited financial and operational results for the first half year and second quarter ended June 30, 2021. First Half And Second Quarter 2021 Highlights Record high bookings of $268 million for H1 2021 and $154 million for Q2 2021, with 40% YoY growth in Q2 Record high quarterly revenues in Q2 2021 of $110 million, up 73% YoY Record high monthly paying users of 395 thousand in Q2 2021, with 43% YoY growth Record high daily active users of 1.2 million in Q2 2021, with 35% YoY growth Record high marketing investment of $155 million in H1 2021 into expanding the player base Chibi Island, a new mobile casual game, was officially released on iOS and Android "We are very happy to kick off our life as a public company with such a strong set of financial and operating results," Nexters Co-founder and CEO Andrey Fadeev said. "Our fantastic team has made an enormous effort, which led to Nexters becoming as we believe the fastest growing gaming company among public peers. Our record-high bookings and other achievements in the first half of this year inspire us to proceed delivering great games to players around the world. After becoming the public company, we now have all the full set of instruments to execute our growth strategy." First Half 2021 financial and operational performance In the first half of 2021 our revenue increased by $74 million (or 61%) year over year and amounted to $196 million, driven mainly by an increase in bookings in the amount of $60 million. Platform commissions increased by 51% in the first half 2021 compared with the same period in 2020, driven primarily by the increase in revenues. Game operation costs and general and administrative expenses (hereinafter referred to as "Operation and G&A expenses") expenses increased by $8 million (or approximately 2 times) in the first half of 2021 vs. the same period in the prior year to reach $16 million. The increase was primarily due to: Preparation of the Company for its listing on the NASDAQ, which resulted in substantial legal and consulting expenses incurred in the first half of 2021, and increased personnel and related share based compensation expenses resulting from new personnel hired at the end of 2020 and over the course of 2021; Increase in personnel and other expenses resulting from the increase in the scale of the Group's operations. Selling and marketing expenses in the first half 2021 increased by $82 million (more than doubling year over year), and amounted to $155 million. The increase was due to the massive scaling of the investments into new players. Net loss in the first half of 2021 amounted to $32 million vs. net income of $4 million in the respective period of 2020. The net loss in the first half of 2021 originated primarily from the substantial increase in marketing investments, increase in Operation and G&A expenses as well as platform commissions, and was partially offset by an increase in revenues. Our substantial investments in marketing in 2021 resulted in a substantial increase in monthly paying users (MPU), which reached 356 thousand in the first half of 2021 vs. 283 thousand in the respective period of 2020, a growth of 26%. Average bookings per paying user (ABBPU) remained relatively stable in the first half of 2021, at $120 in comparison to $118 in the respective period of 2020. Though we witnessed a generally increasing trend in our ABBPUs over the past several quarters, the stabilization of the ABPPU in the first half of 2021 vs. the respective period in the prior year was due to the substantial inflow of new paying users in the first half of 2021 and especially in Q2 2021, as paying users tend to have lower ABPPUs at the inception of the paying cohort. The substantial increase in MPUs accompanied by a relatively stable level of ABPPU resulted in record high bookings of $268 million in the first half of 2021, which grew 29% year over year from $208 million in the first half of 2020. Second Quarter 2021 financial and operational performance In the second quarter of 2021 our revenue increased by $46 million (or 73%) year over year and amounted to $110 million, driven predominantly by an increase in bookings in the amount of $44 million. Platform commissions increased by 60% in the second quarter of 2021 compared with the same period in 2020, driven primarily by the increase in revenues. Operation and G&A expenses increased by $5 million (or 2.3 times) in the second quarter of 2021 vs. the same period in the prior year to reach $9 million. The increase was primarily due to same factors mentioned above in respect of the first half of 2021: Preparation of the Company for its listing on the NASDAQ; Increase in personnel and other expenses resulting from the increase in the scale of the Group's operations. Selling and marketing expenses in Q2 2021 increased by $60 million, or 193% year over year, and amounted to $91 million. The increase was due to the massive scaling of the investments into new players. Net loss in the second quarter of 2021 amounted to $20 million vs. net income of $10 million in the respective period of 2020. The net loss in the second quarter of 2021 originated primarily from the substantial increase in marketing investments, increase in Operation and G&A expenses as well as platform commissions, and was partially offset by the increase in revenues. Our substantial investments in marketing in 2021 resulted in a substantial increase in MPUs, which reached a record high of 395 thousand in the second quarter of 2021 vs. 277 thousand in the respective period of 2020, a growth of 43%. A similar growth has been achieved in monthly active users (MAU) with a 42% increase year over year, reaching 7.6 million in the second quarter of 2021 after 5.3 million MAU in the prior year period. While the amount of daily active users reached its all-time record of 1.2 million in the second quarter of 2021, which is a 35% growth compared to the same period last year. ABBPU remained relatively stable in the second quarter of 2021, at $125 in comparison to $128 in the respective period of 2020, which we attribute to the factors mentioned above in respect of the first half of 2021. The substantial increase in MPUs accompanied by a relatively stable level of ABPPU resulted in record high quarterly bookings of $154 million in the second quarter of 2021, which grew 40% year over year from $110 million in the second quarter of 2020. Recent developments Closing of the business combination On August 26, 2021 the Company consummated the previously announced business combination with Nexters Global Ltd. and Kismet Acquisition One Corp. Following the closing of the business combination, the Company's ordinary shares and warrants started trading on the Nasdaq Global Market under the symbols "GDEV" and "GDEVW," respectively. Please refer to the Form 20-F filed on the August 26, 2021 with the Securities and Exchange Commission (the "SEC") for the details of the transaction. Official Release of Chibi Island On July 28, 2021 Nexters officially released Chibi Island, a new farm and adventure mobile game, after a successful "soft launch" in December 2020. Chibi Island has been in live testing since its soft launch with a limited set of features and content. It has been continuously updated since then with improvements to the game coming via player feedback and analysis of internal game performance metrics. Chibi Island succeeded Island Experiment, a casual farm game first launched on social media channels back in 2014, with nearly 30 million installs to date. Interim Condensed Consolidated Statement of Financial Position As at June 30, 2021, as at March 31, 2021 and December 31, 2020(in thousands of US$)   NOTE June 30, 2021 March 31,2021 December31, 2020 ASSETS         Non-current assets         Property and equipment   946 713 171 Intangible assets   128 129 76 Goodwill   1,473 1,465 — Long-term deferred platform commission fees   105,227 95,117 89,562 Right-of-use assets   1,921 2,275 1,044 Deferred tax asset   17 — — Total non-current assets   109,712 99,699 90,853 Current assets         Trade and other receivables   64,882 45,845 32,974 Loans receivable   282 — 8 Other current assets     5   Cash and cash equivalents   40,898 99,912 84,557 Prepaid tax   3,083 3,074 3,137 Total current assets   109,145 148,836 120,676 Total assets   218,857 248,535 211,529           LIABILITIES AND SHAREHOLDERS' EQUITY     Equity         Share capital   27 27 27 Other reserves   8,112 8,329 8,289 Accumulated deficit   (193,500) (123,289) (111,451) Total equity   (185,361) (114,933) (103,135) Non-current liabilities         Lease liabilities - non-current   568 499 818 Long-term deferred revenue   105,597 90,774 78,985 Total non-current liabilities   106,165 91,273 79,803 Current liabilities         Short-term loans   — 46 49 Lease liabilities - current   1,274 1,593 293 Trade and other payables   36,424 40,370 19,502 Tax liability   534 391 306 Deferred revenue   259,821 229,795 214,711 Total current liabilities  .....»»

Category: earningsSource: benzingaSep 22nd, 2021

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

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

Category: topSource: timeSep 21st, 2021

S&P, NASDAQ Reach New Closing Highs to End a Positive Week

S&P, NASDAQ Reach New Closing Highs to End a Positive Week This slow, summer week sure did see A LOT of big stories! We saw Apple (AAPL) become the first publicly-traded company to reach $2 Trillion and Tesla (TSLA) soar right past $2000 a share. There was an outstanding quarterly report from Target (TGT) amid a mostly solid slate of earnings results. We even received both positive and negative economic data, including a warning from the Fed. But the biggest story of all is that two of the major indices have completely recouped their coronavirus losses and head into the weekend in record territory. The NASDAQ gained approximately 2.7% this week and reached a new high in four of the five sessions. That included today, as the index advanced 0.42% (or nearly 47 points) to make more history at 11,311.80. Technology has resumed its leadership position. Apple really stood out by advancing another 5%+ today and securing its spot all by itself above $2 Trillion. But the NASDAQ is no longer alone, as the S&P also reached new heights. It rose 0.34% to 3397.16 for its second record close of the week. It advanced 0.7% in the five days. The Dow actually had the best performance on Friday, and almost rose enough for a weekly advance despite starting off with a three-day losing streak. But it didn’t quite make it. The index advanced 0.69% (or around 190 points) to 27,930.33. So it was down for the week by less than 1 point! If you were wondering, the Dow still has about 6% to make up before reaching its own closing high. The market enjoyed a nearly 25% jump in existing home sales on Friday, along with some good manufacturing and services data from IHS Markit. These reports provided a nice balance after a couple challenging days, which included very cautious (some would say ‘gloomy’) statements from the Fed and a disheartening jobless claims report that saw the number shoot above 1 million once again. But through it all, the market continues to move higher and heads into the final full week of August with a pretty good chance of making it five straight months of gains. Today's Portfolio Highlights: Insider Trader: It’s rare for insiders to buy shares when their company is at multi-year highs, but that’s exactly what’s happening at CarParts.com (PRTS). In fact, this online car parts retailer is up 550% year to date! The company reported a solid quarter recently with sales soaring 61%, while also conducting a secondary offering at $13 that raised $63.7 million for general corporate purposes. And now, two insiders picked up shares earlier this week, including the General Counsel and a director. Apparently, they think shares of PRTS are moving even higher! Tracey wants to get in too, but this is a fully-invested portfolio. She needs to make some room first. The editor sold the rest of Cincinnati Financial (CINF) for a more than 30% return, which allowed her to add PRTS with a 6% allocation. Read the full write-up for more specifics on these moves. TAZR Trader: Analysts are scrambling to raise their estimates and price targets on Keysight Technologies (KEYS) after this provider of electronic design and test instrumentation systems reported a strong beat and raise quarter. The company surprised by 42% on the bottom line and 10% on the top. Kevin saw an opportunity this morning as shares pulled back to close the Aug 13 gap and kiss the 50-day near $100, with most analysts boosting their PTs above $120. The editor added more to KEYS on Friday. He bought the original position earlier this month. Read the full write-up for more details on this move.  Blockchain Innovators: Shares of Rambus (RMBS) recently came off their highs, so Dave decided it was a good time to cash out. He sold the stock on Friday for a nearly 31% return since being added in February 2019. The new buy was Axcelis Tech (ACLS), a leading producer of ion implantation equipment used in the fabrication of semiconductors. “If chip makers like AMD and NVIDIA provide the picks and axes for the blockchain industry, then companies like Axcelis build the molds for the picks and axes,” said Dave. Rising earnings estimates have made ACLS a Zacks Rank #2 (Buy), while earnings are expected to grow 134% this year with revenue growth of nearly 35%. See the full write-up for more on today’s action. In other news, this portfolio had a couple top performers today as NVIDIA (NVDA) rose 4.47% and PFSweb (PFSW) advanced 4.46%. Value Investor: The housing and refi market is “red-hot” right now and should stay that way for a while. Tracey wanted more exposure to the space, so she added Flagstar Bancorp (FBC) on Friday. The company does community banking in Michigan, but the editor is most interested in its national mortgage servicing side business. Earnings are soaring thanks to the hot mortgage market, which convinced analysts to raise their estimates. As a result, FBC is a Zacks Rank #1 (Strong Buy). Shares are “dirt cheap” and still down 22.3% year-to-date. Tracey was also impressed to see insiders buying the name. Make sure to read the complete commentary for a lot more on this new addition. Have a Great Weekend! Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

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

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

Category: blogSource: zerohedgeSep 21st, 2021

The "Great Game" Moves On

The 'Great Game' Moves On Authored by Alasdair Macleod via GoldMoney.com, Following America’s withdrawal from Afghanistan, her focus has switched to the Pacific with the establishment of a joint Australian and UK naval partnership. The founder of modern geopolitical theory, Halford Mackinder, had something to say about this in his last paper, written for the Council on Foreign Relations in 1943. Mackinder anticipated this development, though the actors and their roles at that time were different. In particular, he foresaw the economic emergence of China and India and the importance of the Pacific region. This article discusses the current situation in Mackinder’s context, taking in the consequences of green energy, the importance of trade in the Pacific region, and China’s current deflationary strategy relative to that of declining western powers aggressively pursuing asset inflation. There is little doubt that the world is rebalancing as Mackinder described nearly eighty years ago. To appreciate it we must look beyond the West’s current economic and monetary difficulties and the loss of its hegemony over Asia, and particularly note the improving conditions of the Asia’s most populous nations. Introduction Following NATO’s defeat in the heart of Asia, and with Afghanistan now under the Taliban’s rule, the Chinese/Russian axis now controls the Asian continental mass. Asian nations not directly related to its joint hegemony (not being members, associates, or dialog partners of the Shanghai Cooperation Organisation) are increasingly dependent upon it for trade and technology. Sub-Saharan Africa is in its sphere of influence. The reality for America is that the total population in or associated with the SCO is 57% of the world population. And America’s grip on its European allies is slipping. NATO itself has become less relevant, with Turkey drawn towards the rival Asian axis, and its EU members are compromised through trading and energy links with Russia and China. Furthermore, France is pushing the EU towards establishing its own army independent of US-led NATO — quite what its role will be, other than political puffery for France is a mystery. It is against this background that three of the Five Eyes intelligence partnership have formed AUKUS – standing for Australia, UK, and US — and its first agreement is to give Australia a nuclear submarine capability to strengthen the partnership’s naval power in the Pacific. Other capabilities, chiefly aimed at containing the Chinese threat to Taiwan and other allies in the Pacific Ocean, will surely emerge in due course. The other two Five Eyes, Canada and New Zealand, appear to be less keen to confront China. But perhaps they will also have less obvious roles in due course beyond pure intelligence gathering. The US, under President Trump, had failed to contain China’s increasing economic dominance and its rapidly developing technological challenge to American supremacy. Trump’s one success was to peel off the UK from its Cameron/Osbourne policy of strengthening trade and financial ties with China by threatening the UK’s important role in its intelligence partnership with the US. For the UK, the challenge came at a critical time. Brexit had happened, and the UK needed global partners for its future trade and geopolitical strategies, the latter needed to cement its re-emergence onto the world stage following Brexit. Trump held out the carrot of a fast-tracked US/UK trade deal. The Swiss alternative of neutrality in international affairs is not in the UK’s DNA, so realistically the decision was a no-brainer: the UK had to recommit itself entirely to the Anglo-Saxon Five-Eyes partnership with the US, Canada, Australia, and New Zealand and turn its back on China. But gathering intelligence and building naval power in the Pacific won’t defeat the Chinese. All simulations show that the US, with or without AUKUS, cannot win a military conflict against China. But AUKUS is not a formal model on NATO lines which commits its members by treaty to aggression against a common enemy. While Taiwan remains a specific problem, the objective is almost certainly to discourage China from territorial expansion and protect and give other Pacific nations on the Asian periphery the security to be independent from the SCO behemoth. The trade benefits of closer relationships with these independent nations are also an additional reason for the UK to join the CPTPP — the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. It qualifies for membership through its sovereignty over the Pitcairn Islands. And that is why China has also applied to join. Therefore, AUKUS’s importance is in the signal sent to China and the whole Pacific region, following the abandonment of land-based operations in the Middle East and Afghanistan. The maritime threat to China is a line which must not be crossed. We are entering a new era in the Great Game, where the objective has changed from dominance to containment. Having lost its position of ultimate control in the Eurasian land mass America has selected its partners to retain control over the high seas. And the UK has found a new geopolitical purpose, re-establishing a global role now that it is independent from the EU. The French cannot join the CPTPP being bound into the common trade policies of the EU. Seeing the British escape the strictures of the EU and rapidly obtain more global influence than France could dream of has touched a raw nerve. Mackinder vindicated The father of geopolitics, Halford Mackinder, is frequently quoted and his theories are still relevant to the current situation. Much has been written about Mackinder’s prophecies. His concept of the World Island was first mentioned in his 1904 presentation to the Royal Geographic Society in London: “a pivot state, resulting in its expansion over the marginal lands of Euro-Asia”. In 1943 he updated his views in an article for the Council on Foreign Relations, adding to his heartland theory. Written during the Second World War, his commentary reflected the combatants and their positions at that time. But despite this, he made a perceptive comment relative to the situation today and AUKUS: “Were the Chinese for instance organised by the Japanese to overthrow the Russian Empire and conquer its territory they might constitute the yellow peril to the world’s freedom just because they would add an oceanic frontage to the resources of the great continent.” When Mackinder wrote his article the Japanese had already invaded Manchuria, but their subsequent defeat removed them from an active geopolitical role, and in place of a Soviet defeat China has entered a peaceful partnership with Russia that extends to all its old Central Asian soviet satellites. It is the focus on the ocean frontage that matters, upon which the maritime silk road depends. The article brings into play another aspect mentioned by Mackinder, and that is the Heartland’s tremendous natural resources, “…including enough coal in the Kuznetsk and Krasnoyarsk basins capable of supplying the requirements of the whole world for 300 years”. And: “In 1938 Russia produced more of the following food stuffs than any other country in the world: wheat, barley, oats, rye, and sugar beets. More manganese was produced in Russia than in any other country. It was bracketed with United States in the first place as regards iron and it stood second place in production of petroleum”. Through its partnership with Russia all these latent resources are available to the Chinese and Russian partnership. And the real potential for industrialisation, held back by communism and now by Russian corruption, has barely commenced. After presciently noting that one day the Sahara may become the trap for capturing direct power from the sun (foreseeing solar panels), Mackinder’s article ended on an optimistic note: “A thousand million people of ancient oriental civilisation inhabit the monsoon lands of India and China [today 3 billion, including Pakistan]. They must grow to prosperity in the same years in which Germany and Japan are being tamed to civilisation. They will then balance that other thousand million who live between the Missouri and the Yenisei [i.e., Central and Eastern America, Britain, Europe and Russia beyond the Urals]. A balanced globe of human beings and happy because balanced and thus free.” Both China and now India are rapidly industrialising, becoming part of a balanced globe of humanity. While the West tries to hang on to what it has got rather than progressing, China and India along with all of under-developed Asia are moving rapidly in the direction of individual freedom of economic choice and improvements in living conditions, to which Mackinder was referring. Obviously, there is some way for this process yet to go, displacing western hegemony in the process. America particularly has found the political challenges of change difficult, with its deep state unable to come to terms easily with the implications for its military and economic power. We must hope that Mackinder was right, and the shift of economic power is best to be regarded as the pains of geopolitical evolution rather than conditions for escalating conflict. But in pursuing its green agenda and eschewing carbon fuels, the West is unwittingly handing a gift to Mackinder’s Heartland, because despite diplomatic noises to the contrary China, India and all the SCO membership will continue to use cheap coal, gas, and oil which Asia has in abundance while Western manufacturers are forced by their governments to use expensive and less reliable green energy. Green obsessions and global trade Meanwhile, the West has gone green-crazy. Banning fossil fuels without there being adequate replacements must be a new definition of insanity, for which the current fuel crises in Europe attest. With over 95% of European logistics currently being shifted by diesel power, switching to battery power or hydrogen by 2030 by banning sales of new internal combustion engine vehicles is a hostage to fortune. While it is hardly mentioned, presumably the Western powers think that by banning carbon fuels they will take the wind out of Russia’s energy quasi-monopoly, because including gas Russia is the largest exporter of fossil fuels in the world. Instead, the West is creating an energy shortage for itself, a point driven home by Gazprom withholding gas flows through its pipelines to Europe, thereby driving up Europe’s energy costs sharply and ensuring a far more severe energy crisis this winter. Even if Russia turns on the taps tomorrow, there is insufficient gas storage in reserve for the winter months. And Europe and the UK have got ahead of themselves by decommissioning coal and gas-fired electricity. In the UK, a massive undersea gas storage facility off the Yorkshire coast has been closed, leaving precious little national storage capacity. As we have seen with the post-covid supply chain chaos, energy problems will not only become acute this winter, but are likely to persist through much of next year. And even that assumes Russia relents and moderates its energy stance to European customers. By way of contrast, though its partnership with Russia China is gifted unlimited access to all carbon fuels. She is still building coal-fired electricity power stations at an extraordinary rate — according to a BBC report there are 61 new ones being commissioned. A further 51 outside China are planned. As a sop to the West China has only said she won’t finance any more outside her territory. And India relies on coal for over two-thirds of its electrical energy. While Europe and America through their green obsessions are denying themselves the availability and technologies that go with carbon fuels, the Russian/Chinese axis will continue to reap the full benefits. The West’s response is likely to be to decry Chinese pollution and its contribution to global warming, but realistically there is little it can do. Demand for Chinese-manufactured goods will continue because China now has a quasi-monopoly on global manufacturing for export. In the unlikely event western consumers become avid savers while their governments continue to run massive budget deficits, their trade deficits will rise even more, allowing Chinese exporters to increase prices for consumers and intermediate goods without losing export sales. While there is nothing it can do about China’s production methods, AUKUS members will undoubtedly lean on other exporting CPTPP members to comply with global green policies. But they will be competing with China, and while they may pay lip service to the climate change agenda, in practice they are unlikely to implement it without holding out for unrealistic subsidies from the western nations driving the climate change agenda. Under current circumstances, it seems unlikely that China’s CPTPP application will lead to membership, given the CPTPP requirement for China’s central government to relinquish ownership of its SOEs and to permit the free flow of data across its borders. In any event, China is focused on developing its Regional Comprehensive Economic Partnership (RCEP), a free trade agreement with ratification signed so far by China, Japan, South Korea, Australia, and New Zealand. It will come into effect when ratified by ten out of the fifteen signatories, likely to be in the first half of 2022, and in terms of population will be two and a half times the size of the EU and the US/Mexico/Canada (USMCA) trade agreements combined. With four out of five of the signatories being American allies, RCEP demonstrates that the AUKUS defence partnership is an entirely separate issue from trade. While the US may not like it, if RCEP goes ahead freer trade will almost certainly undermine a belligerent stance in due course. Despite hiccups, the progression of trade dealing in the Pacific region promises to prove Mackinder right about the prospect of a more balanced world. All being well and guaranteed by a balance of naval capabilities between AUKUS and China, a free-trading Pacific region will render the European and American trade protectionist policies an anachronism. But the threat is now from another direction: financial instability, with western nations pulling in one direction and China in another. Since the Lehman collapse and the ensuing financial crisis, China has been careful to prevent financial bubbles. Figure 1 shows that the Shanghai Composite Index has risen 82% since 2008, while the S&P500 rose 430%. While the US has seen financial asset values driven by a combination of QE and investor speculation, these factors are absent and discouraged in China. Government debt to GDP is about half that of the US. It is true that industrial debt is high, like that of the US. But the difference is that in China debt is more productive while in America there has been a growing preponderance of debt zombies, only kept solvent by zero interest rate policies. China’s policy of ensuring that the expansion of bank credit is invested in production and not speculation differs fundamentally from the US approach, which is to deliberately inflate financial assets to perpetuate a wealth effect. China avoids the destabilising potential of speculative flows unwinding because it lays the economy open to the possibility that America will use financial instability to undermine China’s economy. In a speech to the Chinese Communist Party’s Central Committee in April 2015, Major-General Qiao Liang, the People’s Liberation Army strategist, identified a cycle of dollar weakness against other currencies followed by strength, which first inflated debt in foreign countries and then bankrupted them. Qiao argued it was a deliberate American policy and would be used against China. In his words, it was time for America to “harvest” China. Drawing on Chinese intelligence reports, in early 2014 he was made aware of American involvement in the “Occupy Central” movement in Hong Kong. After several delays, the Fed announced the end of QE the following September which drove the dollar higher, and “Occupy Central” protests broke out the following month. To Qiao the two events were connected. By undermining the dollar/yuan rate and provoking riots, the Americans had tried to crash China’s economy. Within six months the Shanghai stock market began to collapse with the SSE Composite Index falling from 5,160 to 3,050 between June and September 2015. One cannot know for certain if Qiao’s analysis was correct, but one can understand the Chinese leadership’s continued caution based upon it. For this and other reasons, the Chinese leadership is extremely wary of having dollar liabilities and the accumulation of unproductive, speculative money in the economy. It justifies their strict exchange control regime, whereby dollars are not permitted to circulate in China, and all inward capital flows are turned into yuan by the PBOC. Furthermore, domestic monetary policy appears deliberately different from that of America and other western nations. While everyone else has been inflating their way through covid, China has been restricting domestic credit expansion and curtailing shadow banking. The discount rate is held up at 2.9% with market rates slightly lower at 2.2%, and the only reason it is that low is because alternative dollar rates are at zero and EU and Japanese rates are negative. It is this restrictive monetary policy that has led to the current crisis in property developers, with the very public difficulties of Evergrande. Far from being a surprise event, with cautious monetary policies it could have been easily foreseen. Moreover, the government has a sensible policy of not rescuing private sector businesses in trouble, though it is likely to take steps to limit financial contagion. In their glass houses, Western critics continually throw stones at China. But at least her policy makers have attempted to avoid contributing to the global inflation cycle. With prices beginning to rise at an accelerating pace in western currencies, a new global financial crash is in the making. China and her SCO cohort would be adversely affected, but not to the same extent. The fruits of China’s policies of restricting credit expansion are showing in the commodity prices she pays, which in her own currency have increased by ten per cent less than for dollar-based competition, judging by the exchange rate movements since the Fed reduced its funds rate to the zero bound and instigated monthly QE of $120bn on 19-23 March 2020 (see Figure 2). And while both currencies have moved broadly sideways since January, there is little doubt that the fundamentals point to an even stronger yuan and weaker dollar. The domestic benefits of a relatively stronger yuan outweigh the margin compression suffered by China’s exporters. It is worth noting that as well as moderating credit demand, China is attempting to increase domestic consumer spending at the expense of the savings rate, so consumer demand will begin to matter more than exports to producers. It is in line with a long-term objective of China becoming less dependent on exports, and exporters will benefit from domestic sales growth instead. Furthermore, with China dominating global exports of intermediate and consumer goods and while western budget deficits are increasing and leading to yet greater trade deficits, Chinese exporters should be able to secure higher prices anyway. There can be little doubt that the budget deficits financed by monetary inflation in America, the EU, Japan and the UK, plus central bank stimulus packages are now undermining the purchasing power of all the major currencies. The consequences for their purchasing powers are now becoming apparent and attempts to calm markets and consumers by describing them as transient cuts little ice. In terms of their purchasing powers, these currencies are now in a race to the bottom. Not only are the costs of production rising sharply, but following a brief pause of three months, commodity and energy prices look set to rise sharply. Figure 3 shows the Invesco commodity tracker, which having almost doubled since March 2020 now appears to be attempting a break out on the upside. Since global competitiveness is no longer a priority, China would be sensible to let its yuan exchange rate rise against western currencies to help keep a lid on domestic prices and costs. It is, after all, a savings driven economy, with the sustainable characteristics of a strong currency relative to the dollar. Conclusions Having failed in their land-based military objectives, America’s undeclared tariff and financial wars against China are also coming to an end, to be replaced by a policy of maritime containment through the AUKUS partnership. Attempts to stem strategic losses in Asia have now ended with the withdrawal from Afghanistan and from other interventions.The change in geopolitical policy is not yet widely appreciated. But the parlous state of US finances, dollar market bubbles, persistent and increasing price inflation and the inevitability of interest rate increases will make a policy backstop of maritime containment the only geostrategic option left to America. By pursuing more cautious monetary policies, China is less exposed to the inevitable consequences of global monetary inflation. While yuan currency rates are managed instead of set by markets, it is now in China’s interest to see a stronger yuan to contain domestic price and cost inflation. Even though fiat currencies could be destroyed by imploding asset bubbles, these factors contribute to a set of circumstances that appear to lead to a more peaceable outcome for the world than appeared likely before America and NATO withdrew from Afghanistan. There’s many a slip between cup and lip; but it was an outcome forecast by Halford Mackinder nearly eighty years ago. Let us hope he was right. Tyler Durden Sun, 09/26/2021 - 08:10.....»»

Category: personnelSource: nyt17 hr. 34 min. ago

Meet the entrepreneur planning to build the "McDonald"s" of plant-based burgers

Steele Smiley has 20 years of experience in the wellness industry. His latest act: tapping into the millennial and Gen Z plant-based food market. Steele Smiley, founder of fast casual restaurants Crisp & Green and Stalk & Spade. Crisp & Green Entrepreneur Steele Smiley aims to build America's first plant-based burger chain, Stalk & Spade. Along with his other fast-casual restaurant, Crisp & Green, Smiley is tapping into a healthy eating market dominated by millennials and Gen Z. He spoke with Insider about how the pandemic has shifted people's mindset toward wellness. See more stories on Insider's business page. Steele Smiley will be the first to tell you he runs his life like he's in the military.That involves 20 workouts a week, three times a day: Running in the morning, a yoga or boxing class during the day, and lifting weights at night. Since that doesn't seem to satisfy all his energy, Smiley also juggles two Minnesota-based fast-casual restaurants. In 2016, he opened Stalk & Spade, which serves up salads, grain bowls, smoothies, and free workout classes. Five years later (in the midst of the pandemic) he launched Crisp & Green with a plant-based-only menu. He's expanded both brands in the south and Midwest, bucking conventional health hubs like LA and NYC in favor of an edge in less competitive markets."We intend to become the first franchisable plant-based burger chain in the country," Smiley told Insider, billing it as the plant-based version of McDonald's.It's a bold statement, but the 43-year-old serial entrepreneur has 20 years in the fitness industry under his belt. While he declined to share revenue numbers, analytics verified by Insider showed that Crisp & Green digital orders increased from 9% of its total orders in January 2020 to more than 70% in April when the pandemic hit, where they've stayed ever since. Stalk & Spade launched in May. Stalk & Spade In 2021 alone, Crisp & Green expanded from five states to 12, with several locations in the Sun Belt, an area seeing explosive growth before and during the pandemic. Smiley said the chain is nearing 100 stores in 14 states, with new locations opening every 6.8 days. Overall, however, the restaurant scene has been struggling. Last August, before widespread vaccination, the fast casual space was down 12%, according to figures from foodservice data platform Technomic. While consumer spending in restaurants rose this year compared to last, recovery hasn't yet snapped back to pre-pandemic traffic levels. Restaurants are still contending with issues like labor shortages and shorter hours.Still, the wellness economy is worth $1.5 trillion, according to McKinsey, and Smiley is betting he can tap into that, especially since the pandemic has prompted many people to adopt a healthier lifestyle. Plant-based diets, which nearly 10 million Americans follow, are gaining traction. The market is growing, expected to exceed $74 billion by 2021."The next evolution of healthy eating is plant-based eating," Smiley said. "Within a decade, people will choose the plant-based alternatives of the traditional meat they eat today."Move over, SweetgreenSmiley had just $765 in his bank account when he kicked off his career in 2004 with his boutique studio STEELE Fitness. In 2013, he had just landed a major partnership with Under Armour when he sold his business to international wellness company Lift Brands Global. He joined the parent company as a senior executive.He launched Crisp & Green in November 2016, which he juggled while working for Lift Brands for five months before going full-time. "I would work during the day at my first big business, and at night I would put on a Crisp & Green t-shirt and work at my restaurant," Smiley said.Smiley said he'd always wanted to launch multiple businesses in multiple industries. Evolving his career from fitness to healthy eating was only a natural next step."The opportunity that I felt was staring me in the face was food," he said. "In fitness, I taught people that the hour you work out can only be so impactful. The other 23 hours of a day, you can help people understand how to make the right food choices." Crisp & Green offers free fitness classes in addition to its salad and smoothie menu. Crisp & Green Those who perhaps best understood this pre-pandemic were young, healthy women, whom Steele would often see walking through Crisp & Green's doors.His brands certainly have Gen Z and millennial written all over them. The two generations helped grow the global healthy eating and nutrition economy to $704 billion and are leading the way in plant-based eating. Millennials, dubbed "the wellness generation," are especially more health-conscious and more willing to spend on healthy food and fitness than their parents.For them, investing in green juices and $30 spin classes is a discreet status symbol, a way to convey they care about their health and have the money to do it properly.Smiley made sure Crisp & Green checked all the boxes for this demographic: healthy, digitally accessible, deliverable, and Instagrammable. "It made people say I want to live a more aspirational life," he said. A post shared by C&G • Healthy & Scratch-Made! (@crispandgreen) It's this combination that Smiley believes enabled the restaurant to gain steam during the pandemic, which in turn led to his confidence in launching another venture."I figured why stop with just one that was working?" he said. And so Stalk & Spade was born.The plant-based way of the futureAfter his pandemic success, Smiley said he saw an opportunity to prepare for a post-vaccine economic reopening by giving Americans what he thought they'd need after a health-related recession and a social recession: healthier food and an opportunity to get out of the house.But he recognized that bringing yet another concept into the increasingly saturated wellness sector - especially during a pandemic that saw a declining footprint in the fast casual industry - meant that he'd be facing a tough road. He knew he needed to look toward the future - and what he saw were plants. A post shared by STALK & SPADE (@stalkandspade) He said he and his team worked on building Stalk & Spade's plant-based menu from scratch until taste testers couldn't discern the difference between a real burger and a plant-based one.The pandemic pushed healthy eating 10 years into the future, he said. It dramatically expanded his demographic from mostly young adults to nearly everyone.When asked who his clientele is now, Smiley said with a laugh, "humans." After all, "everyone wants to live a better life."Nutrition has taken on new importance, per a McKinsey survey, as people now want food that will help them accomplish wellness goals while tasting good. Millennials and Gen Z are even more willing to invest in health and wellness post-pandemic, with 60% believing that taking care of one's health will be the pandemic's most important societal change. With a modern, minimalist design, even Stalk & Spade's interior is Instagrammable. Stalk & Spade The mental shift has sparked the rise of a high-performance lifestyle, in which people are increasingly letting wearables and apps track their health and make lifestyle choices for them. That includes Smiley himself, who monitors his sleep with wearables. The healthier life people are now turning to is the life Smiley has been living this whole time, which could prove to be the key to growing his brands.By the end of the year, he said, Crisp & Green will have 25 locations with another 60 in the pipeline. Stalk & Spade is set to open up its second Minnesota location in early 2022.Smiley believes the time is now for plant-based eating to go from a niche audience to a more mainstream one. "We fed into the trends of healthy eating," he said of the plant-based market. "It's an opportunity for an entire new genre to start."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 25th, 2021

Palantir Technologies Inc. (PLTR) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Palantir Technologies Inc. (PLTR) closed at $28.56, marking a -0.73% move from the previous day. In the latest trading session, Palantir Technologies Inc. (PLTR) closed at $28.56, marking a -0.73% move from the previous day. This move lagged the S&P 500's daily gain of 0.15%.Heading into today, shares of the company had gained 15.68% over the past month, outpacing the Business Services sector's gain of 1.13% and the S&P 500's loss of 0.58% in that time.PLTR will be looking to display strength as it nears its next earnings release. On that day, PLTR is projected to report earnings of $0.04 per share, which would represent a year-over-year decline of 55.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $385 million, up 33.05% from the year-ago period.PLTR's full-year Zacks Consensus Estimates are calling for earnings of $0.16 per share and revenue of $1.5 billion. These results would represent year-over-year changes of -15.79% and +37.48%, respectively.Investors should also note any recent changes to analyst estimates for PLTR. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PLTR is currently a Zacks Rank #3 (Hold).Investors should also note PLTR's current valuation metrics, including its Forward P/E ratio of 185.61. For comparison, its industry has an average Forward P/E of 29.67, which means PLTR is trading at a premium to the group.The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 13% of all 250+ industries.The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palantir Technologies Inc. (PLTR): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 24th, 2021

Diodes (DIOD) Stock Sinks As Market Gains: What You Should Know

Diodes (DIOD) closed at $94.88 in the latest trading session, marking a -0.36% move from the prior day. Diodes (DIOD) closed at $94.88 in the latest trading session, marking a -0.36% move from the prior day. This move lagged the S&P 500's daily gain of 0.15%.Heading into today, shares of the semiconductor components maker had gained 1.37% over the past month, outpacing the Computer and Technology sector's gain of 0.81% and the S&P 500's loss of 0.58% in that time.DIOD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.38, up 122.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $467.6 million, up 51.1% from the year-ago period.Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.76 per share and revenue of $1.77 billion. These totals would mark changes of +102.55% and +43.73%, respectively, from last year.Any recent changes to analyst estimates for DIOD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DIOD currently has a Zacks Rank of #1 (Strong Buy).Looking at its valuation, DIOD is holding a Forward P/E ratio of 20.02. This valuation marks a discount compared to its industry's average Forward P/E of 21.17.The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 120, which puts it in the top 48% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow DIOD in the coming trading sessions, be sure to utilize Zacks.com. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Diodes Incorporated (DIOD): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 24th, 2021

Peloton (PTON) Stock Sinks As Market Gains: What You Should Know

Peloton (PTON) closed at $92.64 in the latest trading session, marking a -1.84% move from the prior day. Peloton (PTON) closed the most recent trading day at $92.64, moving -1.84% from the previous trading session. This change lagged the S&P 500's 0.15% gain on the day.Coming into today, shares of the exercise bike and treadmill company had lost 17.28% in the past month. In that same time, the Consumer Discretionary sector gained 0.41%, while the S&P 500 lost 0.58%.Wall Street will be looking for positivity from PTON as it approaches its next earnings report date. The company is expected to report EPS of -$1.15, down 675% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $802.71 million, up 5.91% from the year-ago period.PTON's full-year Zacks Consensus Estimates are calling for earnings of -$1.98 per share and revenue of $5.37 billion. These results would represent year-over-year changes of -209.38% and +33.6%, respectively.Any recent changes to analyst estimates for PTON should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 512.12% lower. PTON is currently sporting a Zacks Rank of #5 (Strong Sell).The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Peloton Interactive, Inc. (PTON): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 24th, 2021

Vishay Intertechnology (VSH) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Vishay Intertechnology (VSH) closed at $20.73, marking a +1.02% move from the previous day. Vishay Intertechnology (VSH) closed at $20.73 in the latest trading session, marking a +1.02% move from the prior day. This change outpaced the S&P 500's 0.15% gain on the day.Prior to today's trading, shares of the chipmaker had lost 5.83% over the past month. This has lagged the Computer and Technology sector's gain of 0.81% and the S&P 500's loss of 0.58% in that time.Wall Street will be looking for positivity from VSH as it approaches its next earnings report date. On that day, VSH is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 168%. Our most recent consensus estimate is calling for quarterly revenue of $834.1 million, up 30.3% from the year-ago period.Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.36 per share and revenue of $3.24 billion. These totals would mark changes of +156.52% and +29.31%, respectively, from last year.Investors should also note any recent changes to analyst estimates for VSH. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. VSH currently has a Zacks Rank of #2 (Buy).Investors should also note VSH's current valuation metrics, including its Forward P/E ratio of 8.71. For comparison, its industry has an average Forward P/E of 15.38, which means VSH is trading at a discount to the group.Investors should also note that VSH has a PEG ratio of 0.36 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Discretes industry currently had an average PEG ratio of 0.36 as of yesterday's close.The Semiconductor - Discretes industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 24th, 2021

FT & McKinsey Announce Shortlist For 2021 Business Book Of The Year Award

The Financial Times and McKinsey & Company today publishes the shortlist for the 2021 Business Book of the Year Award. Now in its seventeenth year, the Award is an essential calendar fixture for authors, publishers and the global business community. Each year it recognizes a work which provides the ‘most compelling and enjoyable insight into […] The Financial Times and McKinsey & Company today publishes the shortlist for the 2021 Business Book of the Year Award. Now in its seventeenth year, the Award is an essential calendar fixture for authors, publishers and the global business community. Each year it recognizes a work which provides the ‘most compelling and enjoyable insight into modern business issues’. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more This year’s shortlisted books, selected by the nine distinguished judges (see below) are: The World for Sale: Money, Power and the Traders Who Barter the Earth's Resources, by Javier Blas & Jack Farchy, Random House Business, Cornerstone (UK), Oxford University Press (US) Empire of Pain: The Secret History of the Sackler Dynasty, by Patrick Radden Keefe, Picador/Pan Macmillan (UK), Doubleday (US) The Conversation: How Talking Honestly About Racism Can Transform Individuals and Organizations by Robert Livingston, Penguin Business (UK), Currency/Crown (US) The New Climate War: The Fight to Take Back Our Planet, by Michael E. Mann, Scribe (UK), PublicAffairs (US) This Is How They Tell Me the World Ends: The Cyberweapons Arms Race, by Nicole Perlroth, Bloomsbury Publishing (UK), Bloomsbury (US) The Aristocracy of Talent: How Meritocracy Made the Modern World, by Adrian Wooldridge, Allen Lane (UK), Skyhorse (US) Roula Khalaf, Editor of the Financial Times, said: “We had a fabulous longlist of compelling, deeply researched books to choose from this year. Many thanks to the judges for taking the time to read them and engaging in the debate that produced this excellent shortlist. It tackles many of the pressing issues facing business today, including climate change, cybersecurity, and racial discrimination.” Virginia Simmons, Managing Partner - UK, Ireland & Israel, McKinsey & Company, said: “While the continuing impact of the pandemic is reflected in the books that made the list, the breadth and richness of topics here underscores the forward-looking value of this annual book award.  These authors provide compelling and engaging insights into modern business, climate change conversations and our sustainable and inclusive future, setting up a compelling shortlist for the jury to then select a winner, by year-end.” The judging panel, chaired by Roula Khalaf, comprises: Mimi Alemayehou, Senior Vice President, Public–Private Partnerships, Humanitarian & Development Group, Mastercard Mitchell Baker, Chief Executive Officer, Mozilla Corporation, Chairwoman, Mozilla Foundation Mohamed El-Erian, President, Queens’ College, Cambridge University, Advisor to Allianz and Gramercy Herminia Ibarra, Charles Handy Professor of Organisational Behaviour, London Business School James Kondo, Chairman, International House of Japan Randall Kroszner, Norman R. Bobins Professor of Economics & Deputy Dean for Executive Programs, Booth School of Business, University of Chicago Raju Narisetti, Publisher, Global Publishing, McKinsey & Company Shriti Vadera, Chair, Prudential plc The Financial Times and McKinsey & Company winner of the 2021 Business Book of the Year Award will be announced on 1 December at an event co-hosted by Roula Khalaf, Editor of the Financial Times, and Magnus Tyreman, Managing Partner Europe, McKinsey & Company. The winner will receive £30,000 and the author(s) of each of the remaining shortlisted books will be awarded £10,000. The guest speaker will be Alison Rose, Chief Executive Officer, NatWest Group. Previous Business Book of the Year winners include: Sarah Frier for No Filter: The Inside Story of How Instagram Transformed Business, Celebrity and Our Culture (2020); Caroline Criado Perez for Invisible Women: Exposing Data Bias in a World Designed for Men (2019); John Carreyrou for Bad Blood: Secrets and Lies in a Silicon Valley Startup (2018); Amy Goldstein for Janesville: An American Story (2017); Sebastian Mallaby for The Man Who Knew: The Life and Times of Alan Greenspan (2016); Martin Ford for Rise of the Robots (2015); Thomas Piketty for Capital in the Twenty-First Century (2014); Brad Stone for The Everything Store: Jeff Bezos and the Age of Amazon (2013); Steve Coll for Private Empire: ExxonMobil and American Power (2012); Abhijit V. Banerjee and Esther Duflo for Poor Economics (2011); Raghuram Rajan for Fault Lines (2010); Liaquat Ahamed for The Lords of Finance (2009); Mohamed El-Erian for When Markets Collide (2008); William D. Cohan for The Last Tycoons (2007); James Kynge for China Shakes the World (2006); and Thomas Friedman, as the inaugural award winner in 2005, for The World is Flat. To learn more about the award, visit ft.com/bookaward and follow the conversation at #BBYA21. The Shortlist For The Financial Times And McKinsey 2021 Business Book Of The Year Award The World for Sale The World for Sale: Money, Power and the Traders Who Barter the Earth's Resources, by Javier Blas & Jack Farchy, Random House Business, Cornerstone (UK), Oxford University Press (US) In The World for Sale, two leading journalists lift the lid on one of the least scrutinised corners of the economy: the workings of the billionaire commodity traders who buy, hoard and sell the earth's resources. It is the story of how a handful of swashbuckling businessmen became indispensable cogs in global markets; enabling an enormous expansion in international trade, and connecting resource-rich countries – no matter how corrupt or war-torn - with the world's financial centres. And it is the story of how some traders acquired untold political power, right under the noses of Western regulators and politicians – helping Saddam Hussein to sell his oil, fuelling the Libyan rebel army during the Arab Spring, and funnelling cash to Vladimir Putin's Kremlin in spite of strict sanctions. The result is an eye-opening tour through the wildest frontiers of the global economy, as well as a revelatory guide to how capitalism really works. Empire Of Pain Empire of Pain: The Secret History of the Sackler Dynasty, by Patrick Radden Keefe, Picador/Pan Macmillan (UK), Doubleday (US) The Sackler name adorns the walls of many storied institutions – Harvard; the Metropolitan Museum of Art; Oxford; the Louvre. They are one of the richest families in the world, known for their lavish donations in the arts and the sciences. The source of the family fortune was vague, however, until it emerged that the Sacklers were responsible for making and marketing Oxycontin, a blockbuster painkiller that was a catalyst for the opioid crisis – an international epidemic of drug addiction which has killed nearly half a million people. In this masterpiece of narrative reporting and writing, Patrick Radden Keefe exhaustively documents the jaw-dropping and ferociously compelling reality. Empire of Pain is the story of a dynasty: a parable of 21st century greed. The Conversation The Conversation: How Talking Honestly About Racism Can Transform Individuals and Organizations by Robert Livingston, Penguin Business (UK), Currency/Crown (US) How can I become part of the solution? In the wake of the social unrest of 2020 and growing calls for racial justice, many business leaders and ordinary citizens are asking that very question. This book provides a compass for all those seeking to begin the work of anti-racism. In The Conversation, Robert Livingston addresses three simple but profound questions: What is racism? Why should everyone be more concerned about it? What can we do to eradicate it? For some, the existence of systemic racism against Black people is hard to accept because it violates the notion that the world is fair and just. But the rigid racial hierarchy created by slavery did not collapse after it was abolished, nor did it end with the civil rights era. Whether it’s the composition of a company’s leadership team or the composition of one’s neighborhood, these racial divides and disparities continue to show up in every facet of society. For Livingston, the difference between a solvable problem and a solved problem is knowledge, investment, and determination. And the goal of making organizations more diverse, equitable, and inclusive is within our capability. Livingston’s lifework is showing people how to turn difficult conversations about race into productive instances of real change. For decades he has translated science into practice for numerous organizations, including Airbnb, Deloitte, Microsoft, Under Armour, L’Oreal, and JPMorgan Chase. In The Conversation, Livingston distills this knowledge and experience into an eye-opening immersion in the science of racism and bias. Drawing on examples from pop culture and his own life experience, Livingston, with clarity and wit, explores the root causes of racism, the factors that explain why some people care about it and others do not, and the most promising paths toward profound and sustainable progress, all while inviting readers to challenge their assumptions. Social change requires social exchange. Founded on principles of psychology, sociology, management, and behavioral economics, The Conversation is a road map for uprooting entrenched biases and sharing candid, fact-based perspectives on race that will lead to increased awareness, empathy, and action. The New Climate War The New Climate War: The Fight to Take Back Our Planet, by Michael E. Mann, Scribe (UK), PublicAffairs (US) A renowned climate scientist shows how fossil fuel companies have waged a thirty-year campaign to deflect blame and responsibility and delay action on climate change, and offers a battle plan for how we can save the planet. Recycle. Fly less. Eat less meat. These are some of the ways that we've been told can slow climate change. But the inordinate emphasis on individual behavior is the result of a marketing campaign that has succeeded in placing the responsibility for fixing climate change squarely on the shoulders of individuals. Fossil fuel companies have followed the example of other industries deflecting blame (think "guns don't kill people, people kill people") or greenwashing (think of the beverage industry's "Crying Indian" commercials of the 1970s). Meanwhile, they've blocked efforts to regulate or price carbon emissions, run PR campaigns aimed at discrediting viable alternatives, and have abdicated their responsibility in fixing the problem they've created. The result has been disastrous for our planet. In The New Climate War, Mann argues that all is not lost. He draws the battle lines between the people and the polluters-fossil fuel companies, right-wing plutocrats, and petrostates. And he outlines a plan for forcing our governments and corporations to wake up and make real change, including: A common-sense, attainable approach to carbon pricing- and a revision of the well-intentioned but flawed currently proposed version of the Green New Deal Allowing renewable energy to compete fairly against fossil fuels Debunking the false narratives and arguments that have worked their way into the climate debate and driven a wedge between even those who support climate change solutions Combatting climate doomism and despair-mongering With immensely powerful vested interests aligned in defense of the fossil fuel status quo, the societal tipping point won't happen without the active participation of citizens everywhere aiding in the collective push forward. This book will reach, inform, and enable citizens everywhere to join this battle for our planet. This Is How They Tell Me the World Ends This Is How They Tell Me the World Ends: The Cyberweapons Arms Race, by Nicole Perlroth, Bloomsbury Publishing (UK), Bloomsbury (US) Zero-day: a software bug that allows a hacker to break into your devices and move around undetected. One of the most coveted tools in a spy's arsenal, a zero-day has the power to silently spy on your iPhone, dismantle the safety controls at a chemical plant, alter an election, and shut down the electric grid (just ask Ukraine). For decades, under cover of classification levels and nondisclosure agreements, the United States government became the world's dominant hoarder of zero-days. U.S. government agents paid top dollar-first thousands, and later millions of dollars-to hackers willing to sell their lock-picking code and their silence. Then the United States lost control of its hoard and the market. Now those zero-days are in the hands of hostile nations and mercenaries who do not care if your vote goes missing, your clean water is contaminated, or our nuclear plants melt down. Filled with spies, hackers, arms dealers, and a few unsung heroes, written like a thriller and a reference, This Is How They Tell Me the World Ends is an astonishing feat of journalism. Based on years of reporting and hundreds of interviews, New York Times reporter Nicole Perlroth lifts the curtain on a market in shadow, revealing the urgent threat faced by us all if we cannot bring the global cyberarms race to heel. The Aristocracy Of Talent The Aristocracy of Talent: How Meritocracy Made the Modern World, by Adrian Wooldridge, Allen Lane (UK), Skyhorse (US) Meritocracy: the idea that people should be advanced according to their talents rather than their status at birth. For much of history this was a revolutionary thought, but by the end of the twentieth century it had become the world's ruling ideology. How did this happen, and why is meritocracy now under attack from both right and left? Adrian Wooldridge traces the history of meritocracy forged by the politicians and officials who introduced the revolutionary principle of open competition, the psychologists who devised methods for measuring natural mental abilities and the educationalists who built ladders of educational opportunity. He looks outside western cultures and shows what transformative effects it has had everywhere it has been adopted, especially once women were brought into the meritocractic system. Wooldridge also shows how meritocracy has now become corrupted and argues that the recent stalling of social mobility is the result of failure to complete the meritocratic revolution. Rather than abandoning meritocracy, he says, we should call for its renewal. About the Financial Times The Financial Times is one of the world’s leading business news organisations, recognised internationally for its authority, integrity and accuracy. The FT has a record paying readership of more than one million, three-quarters of which are digital subscriptions. It is part of Nikkei Inc., which provides a broad range of information, news and services for the global business community. www.ft.com About McKinsey & Company McKinsey & Company is a global management consulting firm committed to helping organisations create Change that Matters. In more than 130 cities and 65 countries, our teams help clients across the private, public and social sectors shape bold strategies and transform the way they work, embed technology where it unlocks value, and build capabilities to sustain the change. Not just any change, but Change that Matters – for their organisations, their people, and in turn society at large. www.mckinsey.com/thenextnormal Updated on Sep 24, 2021, 3:13 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkSep 24th, 2021

SCOTT GALLOWAY: Facebook reinforces the power and influence of sociopaths

Years after calling Mark Zuckerberg the most dangerous man in the world, Galloway still thinks Facebook is much more harmful than people realize. Galloways says that firms maintain the DNA of the founder. So, Facebook took on some of the same behaviors as Zuckerberg. Drew Angerer/Getty Images Scott Galloway is a bestselling author and professor of marketing at NYU Stern. The following is a post, republished with permission, that originally ran on his blog, "No Mercy / No Malice." In it, Galloway looks back at a 2019 column in which he says Facebook shows signs of "institutionalized sociopathy." See more stories on Insider's business page. I wrote this two and a half years ago, and believe it still lands.[The following was originally published on May 31, 2019.]There's a firm that's grown faster than any firm to date. Its founder also set the DNA of the firm, but without the benefit of the modulation and self-awareness that come with age. It's in a sector where network effects created a handful of organisms of unprecedented scale. There has never been an organization of this scale and influence, that is more like its founder, than Facebook. I know, you're thinking, "What about the Catholic Church?" Nope. Numerous acts of violence against children, coupled with institutionalized cover-ups, mean the acorn has fallen pretty far from the tree (Jesus).Here's the rub: Mark Zuckerberg is a sociopath, and Facebook has institutionalized sociopathy. To understand sociopaths, according to the quirky psychologist on my new favorite show, "Fleabag," you need to take things away, not add them. There is no empathy, no emotion, nothing. According to a less entertaining, but likely more credible source, Psychology Today:Sociopathy is an informal term that refers to a pattern of antisocial behaviors and attitudes. In the "Diagnostic and Statistical Manual of Mental Disorders" (DSM), sociopathy is most closely represented by Antisocial Personality Disorder. Outwardly, those described as sociopaths may appear disturbed but can also show signs of caring, sincerity, and trustworthiness. In fact, they are manipulative, often lie, lack empathy, and have a weak conscience that allows them to act recklessly or aggressively, even when they know their behavior is wrong.The above makes for a decent blurb for Zuck for his upcoming 20-year high school reunion. Maybe also something about him learning Mandarin or some such.As firms scale and want to maintain the DNA of the founder, they often assemble employee handbooks, meant to be a Bible for how "we do things at Facebook." My friend John Pinette has joined the firm as global head of communications. I like John, and want to help him be successful. Note: The first part of the previous sentence is true. Scott Galloway Easy squeezy, John. First off, identify what behaviors are not acceptable. Images of Tim Cook (respect for privacy), Marc Benioff (concern for the commonwealth), or Indra Nooyi (empathy) are the kryptonite to Sociobook. These vulnerabilities could inhibit the firm's superpower: making more money while inflicting more damage than any firm in history.Instead, the real North Star at Facebook is simple: understand the behavior of sociopaths. Your team needs to continue to demonstrate and reinforce the following characteristics of how, according to Psychology Today, sociopaths seduce their victims (Congress, regulators, media, citizenry):- False expressions of love- False promises of protection- Fake compatibility (I'm like you)- I'm the real victim (turning things around on accuser)- Fantasy villains (inventing crises you alone can fight)And, of course, no respectable employee manual would be effective without hard examples of the behaviors and characteristics we want to reinforce. In order:False expressions of loveMark Zuckerberg promised love. The key to happiness, and love itself is … connection. Mark set out to "connect the world." Love on a global scale was coming our way. Sheryl positioned herself as the spokesperson and advocate for the world's largest oppressed cohort: women.When people are connected, we can just do some great things. They have the opportunity to get access to jobs, education, health, communications. We have the opportunity to bring the people we care about closer to us. It really makes a big difference. - Mark Zuckerberg, February 2015[Bringing people closer together is so important that] we're going to change Facebook's whole mission to take this on. - Mark Zuckerberg, June 2017False promises of protectionThere are pretty intensive privacy options, people have very good control over who can see their information. - Mark Zuckerberg interview, Harvard Crimson, February 2004I'm committed to making Facebook the leader in transparency and control around privacy. - Mark Zuckerberg, 2011I'm serious about doing what it takes to protect our community. - Mark Zuckerberg, March 2018Your trust is at the core of our service. - Sheryl Sandberg, March 2018On Facebook, everything that you share there you have control over. - Mark Zuckerberg, testimony to Congress, April 2018We don't sell data to anyone … This is the most important principle for Facebook: Every piece of content that you share on Facebook, you own and you have complete control over who sees it, and how you share it, and you can remove it at any time. - Mark Zuckerberg, testimony to Congress, April 2018Every piece of information that Facebook might know about you, you can get rid of all of it. - Mark Zuckerberg, testimony to Congress, April 2018We need to do better. - Sheryl Sandberg, repeatedly, 2018-2019ZUCK: i have over 4000 emails, pictures, addresses, snsFRIEND: what!? how'd you manage that one?ZUCK: people just submitted itZUCK: i don't know whyZUCK: they "trust me"ZUCK: dumb fucks- Mark Zuckerberg conversation with a friend at HarvardFake compatibility (I'm like you)I can relate to this. I started Facebook to connect my college … We were just college kids. But we cared so much about this idea - that all people want to connect. So we just kept pushing forward, day by day, just like you. - Mark Zuckerberg, June 2017Let me fall if I must fall. The one I become will catch me. Slowly. - Sheryl Sandberg in "Option B"I hope you find true meaning, contentment, and passion in your life. I hope you navigate the difficult times and come out with greater strength and resolve. I hope you find whatever balance you seek with your eyes wide open. And I hope that you - yes, you - have the ambition to lean in to your career and run the world. Because the world needs you to change it. - Sheryl Sandberg in "Lean In"What is your biggest problem, and how can I solve it? - Sheryl Sandberg in "Lean In"I'm the real victim (turning things around on accuser)This was a breach of trust between Kogan, Cambridge Analytica, and Facebook. - Mark Zuckerberg on Cambridge Analytica scandal, March 2018Facebook employed a Republican opposition-research firm to discredit activist protesters, in part by linking them to the liberal financier George Soros. It also tapped its business relationships, lobbying a Jewish civil rights group to cast some criticism of the company as anti-Semitic. - The New York Times, November 2018Fantasy villains (inventing crises you alone can fight)There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future. The scale of the technology and infrastructure that must be built is unprecedented, and we believe this is the most important problem we can focus on. - Mark Zuckerberg, Letter to Shareholders, 2012While people are concerned with the size and power of tech companies, there's also a concern in the United States with the size and power of Chinese companies, and the realization that those companies are not going to be broken up. - Sheryl Sandberg describing threat to US posed by Chinese tech firmsSo if I sound as if I am accusing Facebook of becoming the Hulk to Zuck's Dr. Bruce Banner, and giving rise to the supernova skynet of sociopathic behavior, trust your instincts. In "Star Wars," the Sith Lords were all initially benign.Two years ago, in "The Four," I wrote that big tech posed a much larger threat to our society than we believed. One year ago, I said Mr. Zuckerberg was the most dangerous man in the world. Today, I'd ask we imagine a firm made in its founder's image that closely mirrors that person's genius and deficiencies.Antisocial behavior in media is not new, it's just new and (uber-) improved here. The President has a direct line to 68 million people via Twitter. Rupert Murdoch serves right-wing propaganda to his 2.4 million viewers. However, these are mosquito bites compared to the ebola of Sociobook. Sociobook Inc. aims to encrypt, abdicating all responsibility, the communications of 2.7 billion people. The algorithm determining the content this cohort receives (greater than the Southern Hemisphere + India) is controlled by a sociopath, who cannot be removed from his post, and who could be in that role for another 60 years.Imagine.Life is so rich,ScottRead the original article on Business Insider.....»»

Category: smallbizSource: nytSep 24th, 2021

General Electric (GE) to Buy BK Medical, Boost Ultrasound Business

General Electric's (GE) acquisition of BK Medical will augment its ultrasound business and enable it to expand into diagnostics, surgical, and therapeutic interventions. General Electric Company GE yesterday announced that it has entered into a deal for the acquisition of BK Medical from Altaris Capital Partners. The deal is valued at $1.45 billion in cash.The company’s shares gained 4.5% yesterday to eventually close the trading session at $102.96.Based in Boston and Copenhagen, BK Medical is a leader in intraoperative imaging and surgical navigation. Designed for surgeons and urologists, the company’s active imaging systems facilitate in visualizing anatomy and lesions, guiding interventions and navigating inside the body of a patient. The company, which employs more than 650 people, has a strong product line that is used across several medical specialties including general surgery, robotic-assisted surgery, neurosurgery and spine, and urology.Inside the HeadlinesGeneral Electric expects the addition of BK Medical’s expertise in advanced ultrasound technology, coupled with its strong innovation capabilities and efficient team, to allow it to come up with comprehensive product offerings and deliver precision health to customers. The BK Medical buyout will augment General Electric’s $3 billion ultrasound business and enable it to expand into diagnostics, surgical, and therapeutic interventions.The company expects BK Medical to deliver growth in revenues and free cash flow along with margin expansion. It also anticipates a return of high-single-digit on invested capital by year five from the acquisition. The completion of the transaction, which is subject to certain regulatory approvals, is anticipated to be completed in 2022.BK Medical will be integrated into the General Electric’s Healthcare segment. This segment is engaged in providing technologies in patient monitoring, medical imaging, drug discovery, and others. It also offers biopharmaceutical manufacturing technologies. The segment generated revenues of $4,454 million, accounting for 25.3% of total revenues in second quarter of 2021.In May 2021, General Electric acquired France-based Zionexa, which is likely to strengthen its offerings in precision health and theranostics space. Also, in June, through its joint venture’s subsidiary, the company agreed to purchase the Transformer Solutions business of SPX Corporation SPXC.Zacks Rank, Price Performance and Estimate TrendGeneral Electric, with a $108.4-billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company stands to gain from solid contract wins, acquired assets, a strong liquidity position, and the restructuring of its portfolio. However, the market-related challenges in the Aviation segment remain a woe.Image Source: Zacks Investment ResearchIn the past three months, its share price has decreased 2.2% against the industry’s increase of 5.3%.The Zacks Consensus Estimate for 2021 earnings has decreased 1% to $1.99 in the past 60 days. Earnings estimates for 2022 have declined 0.7% to $4.16 over the same period.Stocks to ConsiderA couple of better-ranked stocks from the same space are Raven Industries, Inc. RAVN and Carlisle Companies Incorporated CSL. While Raven currently sports a Zacks Rank #1 (Strong Buy), Carlisle carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Raven pulled off an earnings surprise of 42.59%, on average, in the trailing four quarters.Carlisle pulled off an earnings surprise of 39.38%, on average, in the trailing four quarters. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Electric Company (GE): Free Stock Analysis Report Raven Industries, Inc. (RAVN): Get Free Report Carlisle Companies Incorporated (CSL): Free Stock Analysis Report SPX Corporation (SPXC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 24th, 2021

Autodesk (ADSK) Down 5.8% Since Last Earnings Report: Can It Rebound?

Autodesk (ADSK) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Autodesk (ADSK). Shares have lost about 5.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Autodesk due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Autodesk Q2 Earnings Top Estimates, Revenues Rise Y/YAutodesk reported second-quarter fiscal 2022 non-GAAP earnings of $1.21 per share that beat the Zacks Consensus Estimate by 9% and increased 23.5% year over year.Revenues of $1.06 billion beat the consensus mark by 0.7% and grew 16% year over year. At constant currency (cc), revenues were up 14%. The upside was driven by increases in new product subscriptions and higher renewal rates along with improving digital sales.Top-Line DetailsSubscription revenues (95.9% of revenues) increased 20.9% year over year to $1.017 billion. Other revenues (2.5% of revenues) increased 26.1% to $26.1 million in the reported quarter.However, maintenance revenues (1.6% of revenues) slumped 67% to $16.9 million.Recurring revenues contributed 98% to Autodesk’s second-quarter fiscal 2022 revenues. Net revenue retention rate was within 100% to 110%.Geographically, revenues from the Americas (39.9% of revenues) increased 14% from the year-ago quarter’s levels to $422.8 million. Europe, Middle East and Africa (EMEA) revenues (38.7% of revenues) increased 16% to $410.2 million. Revenues from Asia-Pacific (21.4% of revenues) rallied 21% to $226.7 million.Meanwhile, billings of $1.015 billion increased 29% year over year in the reported quarter.Product-wise Top-line DetailsAutodesk offers primarily four product families, Architecture, Engineering and Construction (AEC), AutoCAD and AutoCAD LT, Manufacturing (MFG) as well as Media and Entertainment (M&E).AEC (45.2% of revenues) revenues increased 21% year over year to $478.7 million. AutoCAD and AutoCAD LT (28.7% of revenues) revenues rose 12% to $304.4 million. MFG (19.6% of revenues) revenues increased 12% to $207.7 million.M&E (5.5% of revenues) increased 10% to $58.5 million, while other revenues (1% of revenues) increased 93% to $10.4 million.Operating ResultsNon-GAAP gross margin contracted 30 basis points (bps) from the year-ago quarter’s figures to 92.3%.Non-GAAP operating expenses, as a percentage of revenues, contracted 280 bps from the year-ago quarter’s levels to 61.1%. The lower operating expenses reflected disciplined cost management in the reported quarter.Autodesk reported non-GAAP operating income of $330.8 million, up 26.1% year over year. Operating margin expanded 200 bps from the year-ago quarter’s levels to 31%.Balance Sheet & Cash FlowAs of Jul 31, 2021, Autodesk had cash and cash equivalents (including marketable securities) of $924.9 million compared with $923.2 billion as of Apr 30, 2021.Deferred revenues increased 15% to $3.3 billion. Unbilled deferred revenues at the end of the fiscal second quarter were $843 million, up 124.8% year over year.Total RPO of $4.14 billion and current RPO of $2.85 billion both increased 24%. Current RPO growth was primarily driven by the higher sales of new products as well as increase in strong growth in enterprise business agreements (EBA).The company repurchased 164,000 shares for $46 million at an average price of approximately $283 per share. Cash flow from operating activities was $202 million compared with $336.1 million posted in the previous quarter. Free cash flow was $186 million compared with the previous quarter’s figure of $315.8 million.GuidanceFor third-quarter fiscal 2022, Autodesk expects revenues between $1.11 billion and $1.125 billion. Non-GAAP earnings are anticipated in the range of $1.22-$1.28 per share.Driven by strong second-quarter results and increased migration of EBA clients to annual billings from multi-year paid up front, Autodesk raised fiscal 2022 revenue outlook.For fiscal 2022, Autodesk expects revenues between $4.345 billion and $4.385 billion, indicating growth of 15-16% year over year. Earlier, Autodesk projected revenues between $4.305 billion and $4.385 billion, indicating growth of 14-16% year over year.Non-GAAP earnings are now expected between $4.91 and $5.06 per share compared with $4.67-$4.97 per share projected earlier.The migration of EBA clients to annual billings will have a “modest impact” on the billings and free cash flow metrics for fiscal 2022, noted management.Billings are now projected to be $4.875-$4.975 billion, suggesting an increase of 18-20% year over year. Previously, billings were projected to be $4.93-$5.055 billion, implying an increase of 19-22% year over year.Free cash flow is expected between $1.5 billion and $1.575 billion compared with the earlier guidance of $1.575-$1.65 billion.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.VGM ScoresAt this time, Autodesk has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Autodesk has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 24th, 2021

InMed Pharmaceuticals Inc. Releases FY 2021 Financial Report And Corporate Update

InMed Pharmaceuticals (NASDAQ: INM), a leader in the manufacturing and clinical development of rare cannabinoids, has released its financial results and corporate update for FY 2021. In addition, the company announced a conference call and webcast, in which company leadership will discuss the report. Interested parties can access a replay of the webcast for 90 days. Corporate highlights of the report include the definitive agreement the company entered to acquire BayMedica Inc., a private company specializing in the manufacture and commercialization of rare cannabinoids; the announcement that INM’s IntegraSyn(TM) cannabinoid manufacturing approach had achieved a level of 2g/L cannabinoid yield, a signal of commercial viability; and the filing of clinical trial applications in multiple countries for the company’s multi-site Phase 2 clinical trial of INM-755 (cannabinol) cream in Epidermolysis Bullosa (“EB”). In addition, the company noted that it had notified the Toronto Stock Exchange about the voluntary delisting of its common shares, which were delisted in May 2021. INM also entered into a securities purchase agreement with an institutional investor designed to raise an estimated $12.0 million; INM closed the private placement on July 2, 2021. The company also reported a net loss of $10.2 million compared with a net loss of $8.9 million for the previous year, along with cash, cash equivalents, and short-term investments totaling $7.4 million, compared to $5.8 million ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaSep 24th, 2021

NIKE (NKE) Q1 Earnings Beat, Sales Miss on Supply Constraints

NIKE (NKE) reports mixed Q2 results on strong NIKE Direct revenues, improved traffic and robust digital momentum, offset by the global supply-chain woes, and factory closures in Vietnam and Indonesia. NIKE Inc. NKE posts mixed first-quarter fiscal 2022 results amid supply-chain disruptions. The company’s earnings beat the Zacks Consensus Estimate, while sales lagged estimates. However, revenues and earnings improved year over year on strong NIKE Direct revenues, led by the return of traffic to stores as well as continued digital momentum. Its product innovation, brand strength and scale of operations continued to drive digital sales growth.Shares of the company declined 3.9% after the close of the trading session on Sep 23. The negative investor sentiment can be attributed to the company’s commentary on its position amid supply-chain woes and the closure of factories in Vietnam and Indonesia, and the consequent lowering of the fiscal 2022 guidance.Overall, shares of this Zacks Rank #3 (Hold) company have gained 2.8% in the past three months compared with the industry’s 1.6% growth.NIKE, Inc. Price, Consensus and EPS Surprise  NIKE, Inc. price-consensus-eps-surprise-chart | NIKE, Inc. QuoteQ1 HighlightsIn the reported quarter, the company’s earnings per share of $1.16 increased 22% from 95 cents reported in the year-ago quarter and beat the Zacks Consensus Estimate of earnings of $1.12.Revenues of the Swoosh brand owner grew 16% year over year to $12,248 million but missed the Zacks Consensus Estimate of $12,539.5 million. On a currency-neutral basis, revenues improved 12% year over year, driven by growth across all channels, led by growth at NIKE Direct.Sales at NIKE Direct were $4.7 billion, up 28% on a reported basis and 25% on a currency-neutral basis. The NIKE Direct business benefited from steady normalization of the owned retail business and continued momentum in the digital business. Revenues at owned stores improved 24%, which was above the pre-pandemic levels recorded in first-quarter fiscal 2020. Image Source: Zacks Investment Research The company continued to witness robust revenue growth at the NIKE Brand’s Digital business despite the reopening of stores. Digital revenues for the NIKE Brand were up 29% year over year on a reported basis. On a constant-currency basis, Digital sales improved 25%, led by 43% growth in North America.However, Wholesale revenues increased 5%, owing to the impacts of lower availability inventory supplies, thanks to the worsening delays in transit.Operating SegmentsThe NIKE Brand Revenues were $11,640 million, up 16% year over year on a reported basis. Revenues for the brand increased 12% on a constant-dollar basis primarily due to the NIKE Direct business’ double-digit growth in North America, APLA and EMEA.Within the NIKE Brand, revenues in North America advanced 15% on both reported and currency-neutral basis to $4,879 million. This marked the fifth consecutive season of the incredible demand for NIKE products, fueled by the back-to-school sale and return of sports activity. North America revenues benefited from double-digit growth in the Performance business in the Fall season, led by running, fitness and basketball. This growth was also influenced by the Olympics fervor, the WNBA season and the NBA finals.Sales for the NIKE Direct business were up more than 45% in the region, accounting for 26% business share. Digital sales grew 40%, driven by market share growth on strong site traffic and repeated buying from members. Sales at NIKE-owned stores accelerated more than 50% due to the return of traffic to physical stores and enhanced experiences.However, the North America business witnessed headwinds from highly elevated in-transit inventory levels due to the deterioration of transit times in North America in the last reported quarter. The transit time has now almost doubled from the pre-pandemic levels, affecting product availability across the market and its ability to serve consumer demand, particularly in the Wholesale channel. NIKE-owned inventory rose 12% year over year. Closeout inventory levels declined in double-digits from the year-ago quarter.In EMEA, the company’s revenues rose 14% on a reported basis and 8% on a currency-neutral basis to $3,307 million. Growth was driven by the EURO this summer, with NIKE players scoring higher goals than all other brands combined. The company’s Mercurial boots accounted for more than half of these goals, resulting in higher demand for the Mercurial boot and replica jerseys during the tournament.The NIKE Direct business improved 10% on a currency-neutral basis, driven by growth at NIKE stores. Traffic at EMEA stores increased year over year in double-digits coupled with better-than-anticipated conversions. NIKE Digital was up 2%. Demand for full-priced products rose 30% from last year’s higher liquidation levels. NIKE-owned inventory fell 14% in EMEA, while closeout inventory declined in double-digits. The decline is attributed to the further deterioration of transit times in EMEA in the last 90 days, leading to higher in-transit inventory and affecting the product availability to meet demand.In Greater China, revenues increased 11% year over year on a reported basis and 1% on a currency-neutral basis in the fiscal fourth quarter to $1,982 million. Revenues improved in line with an expected recovery in the market. Retail sales in late July and August were impacted by regional closures and lower foot traffic due to COVID-19 infections in the region. Prior to late July, the company witnessed recovery in traffic at physical stores, with traffic levels coming close to the prior-year levels. NIKE Direct declined 3% in the fiscal first quarter partly due to the closure of NIKE-owned stores. NIKE Digital declined 6% compared with the higher liquidation in the prior year. This was partly negated by double-digit growth in full-price sales.In APLA, NIKE revenues advanced 33% on a reported basis and 31% on a currency-neutral basis to $1,465 million. Revenues were aided by growth across all regions, led by Japan, SOKO, Korea and Mexico, offset by muted growth in the Pacific and Southeast Asia, and India due to COVID restrictions. NIKE Digital rose more than 60% on a currency-neutral basis due to the expansion of the NIKE App.Revenues at the Converse brand improved 12% on a reported basis to $629 million. On a currency-neutral basis, revenues of the segment were up 7%, backed by strong Direct-to-consumer revenues in North America and Europe.Costs & MarginsThe gross profit advanced 20% year over year to $5,696 million, while the gross margin expanded 170 basis points (bps) to 46.5%. Gross margin growth can be attributed to improved NIKE Direct margins, driven by higher full-price sales mix and favorable currency rates, offset by escalated product costs, owing to increased ocean freight costs.Selling and administrative expenses rose 20% to $3,572 million, driven by higher operating overhead and demand-creating expenses. As a percentage of sales, SG&A expenses increased 110 bps to 29.2% from the prior-year quarter.Demand-creation expenses increased 36% year over year to $918 million, owing to the normalization of spending at brand campaigns as the market laps the last year’s closures due to COVID-19, along with sustained investments in digital marketing to facilitate the rising digital demand.Operating overhead expenses were up 15% to $2.7 billion on higher wage-related expenses, increased technology investments to support digital transformation, and NIKE Direct variable costs.Balance Sheet & Shareholder-Friendly MovesNIKE ended first-quarter fiscal 2022 with cash and short-term investments of $13,695 million, up $4.2 billion from the last year. These included strong free cash flow generation, partly offset by cash dividends and share repurchases. It had long-term debt (excluding current maturities) of $9,415 million and shareholders’ equity of $14,343 million as of the end of the fiscal first quarter. As of Aug 31, 2021, inventories of $6,699 million were almost flat with the prior-year levels.In first-quarter fiscal 2022, the company returned $1.2 billion to shareholders, including dividend payouts of $435 million and share repurchases of $742 million. It completed share repurchases of 4.8 million shares under its $15-million program approved in June 2018 in the reported quarter. As of Aug 31, it repurchased 54.8 million shares for $5.4 billion under the aforesaid program.OutlookNIKE expects the consumer demand to remain at all times, driven by its strong customer connections and brand momentum. However, it remains uncertain regarding the global supply-chain headwinds that are looming in the industry. The supply-chain disruptions have been challenging for manufacturers and has significantly hampered the mobility of products across the globe. The company previously anticipated the delays in transit times to continue throughout fiscal 2022. The company notes that the transit times in North America and Europe have further deteriorated in the fiscal first quarter due to port and rail congestions, and labor shortages.In another development, the company is witnessed the sudden closure of manufacturing units of its factory partners in Vietnam and Indonesia due to COVID-related government mandates. Although the company stated that Indonesia is fully operational now, it expects the footwear factories in Vietnam to remain closed. The reopening and ramping up of the factories to full scale is likely to take time.Consequently, the company has lowered its fiscal 2022 guidance to reflect the impacts of 10-weeks of lost production in Vietnam since mid-July and expectations of the elevated transit times to remain consistent with the current levels.For fiscal 2022, the company anticipates revenue growth in the mid-single digits compared with low-double-digit growth mentioned earlier. Lowered sales are expected to result solely from the aforementioned supply-chain congestions. The company expects revenue growth to be flat to down in low-single digits, particularly in second-quarter fiscal 2022, owing to the impacts of the lost production due to factory closures and delayed delivery times for the holiday and spring seasons. The company expects the lost weeks of production and the longer transit times to result in short-term inventory shortages in the market over the next few quarters.The company expects all of its geographic regions to be impacted by the difficult dynamics. However, some geographies in Asia, with less in-transit inventory at the end of the fiscal first quarter, are likely to witness uneven impacts in the second quarter.For the rest of fiscal 2022, the company anticipates the strong market demand to exceed the available supplies. Nonetheless, it remains optimistic of the inventory supply availability to improve going into fiscal 2023.The gross margin is now estimated to expand 125 bps in fiscal 2022, which is at the low-end of previously mentioned 125-150 bps growth. This growth is likely to be driven by the continued shift to the higher-margin NIKE Direct business, sustained strong full-priced sales and price increases in the second half. This is expected to be partly offset by 100 bps of incremental transportation, logistics and airfreight costs to move inventory in the current environment. The company now expects lower foreign currency tailwinds on gross margin in fiscal 2022, estimated at 60 bps.For the fiscal second quarter, it expects gross margin to expand at a lower rate than fiscal 2022 due to higher planned airfreight investments for the holiday season.The company expects SG&A growth in the mid-to-high teens for fiscal 2022. Earlier, it expected SG&A growth to slightly surpass revenue growth. The rise in SG&A expenses is likely to be driven by spends related to sporting events and investments against its largest opportunities. The effective tax rate is estimated to be in the mid-teens.Despite the near-term challenges, the company stated that it remains on track to reach its long-term financial targets for fiscal 2025 outlined in fourth-quarter fiscal 2021.3 Better-Ranked Stocks to WatchSteven Madden, Ltd. SHOO has a long-term earnings growth rate of 15%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Carter’s, Inc. CRI has a long-term earnings growth rate of 21.1% and it flaunts a Zacks Rank #1 at present.Wolverine World Wide, Inc. WWW has a long-term earnings growth rate of 10%. The company currently has a Zacks Rank #2 (Buy). Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report Wolverine World Wide, Inc. (WWW): Free Stock Analysis Report Carters, Inc. (CRI): Free Stock Analysis Report Steven Madden, Ltd. (SHOO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 24th, 2021

Ball Corp (BLL) to Build Can Plant in Nevada to Meet Demand

Ball Corp's (BLL) latest investment supports its focus on expanding the company's capacity to meet customers' surging demand for beverage cans. Ball Corporation BLL recently announced that it intends to build a new multi-line aluminum beverage-can packaging plant in North Las Vegas, NV, in an effort to boost its capacity to meet customers’ heightening demand for beverage cans. This plant is scheduled to commence production in the end of 2022. The company plans to invest roughly $290 million in this facility over several years. The plant will supply a variety of innovative can sizes to diverse beverage customers.Given its proximity to customer can-filling investments, rising beverage can packaging demand in the region, proper infrastructure and regional labor base, North Las Vegas is an appropriate choice. Once it gets fully operational, the new facility will likely add 180 jobs in the state.The can industry has been witnessing a rising demand for the past few years, as customers now prefer cans over plastic packaging owing to environmental concerns. Changing lifestyle choices, population growth and increasing disposable income have led to this shift. An estimated 75% of new beverage product launches are now in cans. These aluminum cans, bottles and cups are infinitely recyclable and economically valuable beverage packaging option, with an 82% recycling rate in the U.K. and 76% across Europe. On top of this, the COVID-19 pandemic provided a boost to the beverage can industry, as customers are opting to buy multiple packs of beverages and packaged products that can be consumed on-the-go. The global beverage-can industry is expected to grow by approximately 100 billion units by 2025. Of this, the company sees an opportunity to add as much as 45 billion units.To capitalize on this demand trend, Ball Corp has been investing significantly in projects across North America, South America and EMEA, which are expected to add at least 25 billion units of contracted beverage-can capacity by the end of 2023 (off a 2019 base of 100 billion units). The company has been witnessing stellar growth in its top and bottom lines for the past few quarters thanks to the solid global beverage-can demand. The company’s constant focus on rolling out new products and efforts to cut down costs will continue to aid its performance.The investments also align with Ball Corp’s “Drive for 10 vision”, which comprises five strategic levers that are key to growing its business and driving long-term growth. A key lever among these is to maximize the value of the existing businesses by improving efficiencies in its facilities and expanding production across the company’s global plant network to meet the current demand.The company maintains its expectation to deliver long-term diluted earnings per share growth of at least 10-15% and achieve EVA (economic value added) dollars growth of 4-8% per year in 2021 and beyond.Price PerformanceThe stock has gained 11.4% over the past six months, outperforming the industry’s growth of 8.8%.Image Source: Zacks Investment ResearchZacks Rank & Stocks to ConsiderBall Corp currently carries a Zacks Rank #3 (Hold).Better-ranked stocks in the Industrial Products sector include Encore Wire Corporation WIRE, Alcoa Corporation AA and Lincoln Electric Holdings, Inc. LECO, each carrying a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Encore Wire has a projected earnings growth rate of 332.6% for fiscal 2021. So far this year, the company’s shares have gained 45%.Alcoa has an estimated earnings growth rate of 573.2% for 2021. The company’s shares have rallied 108%, so far this year.Lincoln Electric has an expected earnings growth rate of 45.1% for 2021. The stock has appreciated 22%, year to date. Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa Corp. (AA): Free Stock Analysis Report Ball Corporation (BLL): Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Encore Wire Corporation (WIRE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 24th, 2021