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Activist investor takes stake in Macy’s, pushes e-commerce spinoff

Activist shareholder Jana Partners LLC has bought a stake in Macy’s Inc. and has sent a letter to the retailer’s board urging a spin-off of its e-commerce business, according to The Wall Street Journal. The newspaper, which cited unnamed sources familiar with the matter, didn’t disclose the size of Jana’s stake. Jana believes a standalone e-commerce business would be worth a multiple of New York-based Macy’s (NYSE: M) current market value, which was about $7 billion based on Thursday’s….....»»

Category: topSource: bizjournalsOct 14th, 2021

The Wall Street Journal: Activist investor Jana takes stake in Macy’s, urges spinning off e-commerce unit

Jana Partners LLC on Wednesday sent a letter to the company’s board prodding it to separate the online unit, which has about $8 billion in annual revenue, sources said......»»

Category: topSource: marketwatchOct 14th, 2021

A stock and a hard place: SoftBank"s $150 billion Alibaba warchest in spotlight

SoftBank CEO Masayoshi Son threw cold water on Wednesday on the idea of cutting his firm's $150 billion stake in e-commerce giant Alibaba , after prominent activist investor Elliott Management called for big buybacks......»»

Category: topSource: reutersFeb 12th, 2020

Elliott takes big stake in AT&T

AT&T shares rose Monday after activist investor Elliott Manamgent disclosed a $3.2 billion stake and called on the wireless carrier to sell non-core businesses to boost its stock price. Fred Katayama reports......»»

Category: videoSource: reutersSep 9th, 2019

Activist investor Icahn takes stake in Dollar Tree - NY Post

Billionaire activist investor Carl Icahn is accumulating a significant stake in discount chain Dollar Tree Inc , the New York Post reported on Tuesday......»»

Category: topSource: reutersOct 16th, 2018

Dollar Tree shares rise after activist investor takes a stake, makes nominations for the board

Dollar Tree Inc. shares rose 3.2% in Monday premarket .....»»

Category: topSource: marketwatchJan 7th, 2019

After "Sluggish" Q4 Print From eBay, Sell-Side More Focused On "The Elephant In The Room"

E-commerce company eBay Inc (NASDAQ: EBAY) reported fourth-quarter results Tuesday, days after activist investor Elliott Management announced a stake of more than 4 percent Latest Ratings for EBAY .....»»

Category: blogSource: benzingaJan 30th, 2019

After "Sluggish" Q4 Print From eBay, Sell-Side More Focused On "The Elephant In The Room"

E-commerce company eBay Inc (NASDAQ: EBAY) reported fourth-quarter results Tuesday, days after activist investor Elliott Management announced a stake of more than 4 percent. Here's how the Street reacted. The Analysts Bar.....»»

Category: earningsSource: benzingaJan 30th, 2019

Elliott takes 6.1 percent stake in Dutch Intertrust

Paul Elliott Singer, the hedge fund manager behind activist investor Elliott, has taken a 6.1 percent stake in Dutch trust and business administration company Intertrust, according to a filing published by the Dutch Authority for Financial Markets (AFM)......»»

Category: topSource: reutersFeb 19th, 2019

Van Jones on his new podcast in partnership with Amazon Music and how he plans to implement a $100 million gift for charity from Jeff Bezos

Van Jones spoke to Insider about his new podcast, "Uncommon Ground with Van Jones," which debuted this week in partnership with Amazon Music. Van Jones. Leigh Vogel/Getty Images Van Jones spoke to Insider about his new podcast, "Uncommon Ground with Van Jones," which debuted this week in partnership with Amazon Music. Jones also discussed his work in criminal-justice reform and the award he received from Jeff Bezos that included a $100 million gift for non-profit recipients of Jones' choosing. Van Jones, the CNN political commentator, activist, and entrepreneur, spoke to Insider last week in a phone interview tied to the release of his new podcast, "Uncommon Ground with Van Jones," which debuted Wednesday in partnership with Amazon Music."Uncommon Ground" finds Jones in conversation with notable names and grassroots activists "in search of unifying solutions to our country's biggest problems," with topics ranging "from climate change, to prison reform, to voting rights, to spiritual evolution, to cancel culture," according to a release. The initial slate of guests includes Deepak Chopra, Chef José Andrés, will.i.am, Sarah Silverman, Bishop T.D. Jakes, Andrew Yang, and S.E. Cupp.In our interview, Jones discussed the podcast in relation to his history of work in criminal-justice reform, including his founding and continued presence on the Reform Alliance and his efforts to help pass the bipartisan legislation of the First Step Act in 2018. He also alluded to his plans to implement the "Courage and Civility Award" that he received from Amazon founder Jeff Bezos in July, which included a $100 million to gift to non-profit organizations of Jones' choice.This interview has been lightly edited and condensed for clarity.How did this come together, the podcast and the partnership behind it?You know, I've been fascinated by the podcast space as a place for a deeper and more intimate conversation, had the opportunity to do a podcast with CNN called "Incarceration, Inc.," and really enjoyed that experience. And I just wanted to have broader, deeper conversations in the podcast space. Amazon is in the process of ramping up this capacity, in this area, and I'm excited to be on board. How do you approach making topics like climate change and voting rights compelling enough to engage the average or uninterested listener? Sort of the question of our times.I think people are very interested in these topics. I think that they are just worn down by the tone and the tenor of the discussion. I think it's kind of like when you have two neighbors fighting over an important topic. You're sick of the fight, but you're not sick of the topic. How are we going to give our kids a livable planet? How are we going to make sure that democracy works better for everybody? How can we make sure that people have opportunities in this new kind of high-tech economy? Those are things that people are thinking about and talking about and worrying about all the time. I just think what we have to do is make sure that we are going deeper than just the soundbites and the tweets and the talking points. And that's really what "Uncommon Ground" is all about.Also, we're going to be hearing from new voices, all these amazing grassroots leaders, who I get a chance to meet when I'm on the road, working on political causes or speaking in different communities. These folks never get heard from, and they are so hopeful and smart and tough. So I think having new voices is going to be important and hearing from new voices. And then hearing from more familiar voices, but talking about things in a deeper, more heartful way. So there's going to be new voices in the conversation. There's also gonna be new perspectives from familiar voices in the same conversation.What's your ideal guest, apart from who you've listed? Who do you seek out for this type of a format?Well, I'm really proud of the people we've already got. I mean, we've got some of the biggest humanitarian voices on the planet, whether you're talking about Chef José Andrés, or whether you're talking about Deepak Chopra or T.D. Jakes. We also have people that are not as well-known, but grassroots activists, like Malkia Cyril and LaTonya from Philadelphia. And then, as we go forward, I'm hoping that that people recognize us as a very good place to come and have a deeper and more heartful conversation. And I think people may be surprised at some of the voices that we pull on overtime. Jeff Bezos (C) with Chef José Andrés (L) and Van Jones in July, after announcing a $100 million award for charity to both Andrés and Jones. Joe Raedle/Getty Images I wanted to say, congrats on the award from Jeff Bezos.Oh, well, thank you.How does one go about strategizing the implementation of a $100 million gift for charity?Uh, very carefully. [Laughs].[Laughs].[Laughs]. You know, I was blown away that Jeff Bezos and Lauren Sanchez decided to create this new award in the first place, and then to have me be one of the first two recipients. Over the past 30 days, since we've only had the grant for 30 days, I've been in very deep conversation and dialogue with experts across a whole range of different fields of endeavor. And we have a 10-year horizon to figure out how to invest and distribute the funds. But look, here's the thing. I've always been fighting for the same basic causes. I've been trying to disrupt prisons and pollution and poverty for my whole career. But I've never had enough philanthropic capital to put behind my ideas or the solutions that I think are most promising.And so now that's different. It's a crazy experience to go from being somebody who's been asking for grants for 30 years to being somebody who is in a position to invest philanthropically. We'll have announcements to make in 2022, but I am taking my time. I'm not in a rush. You know, this is a once in a lifetime opportunity. We call this "the miracle money," and I want every penny to make a miracle. That's the standard. If I can 10x the impact, I want to be able to do that. So, every penny needs to make a miracle. And that's what we're focused on. By the way, the very first episode of the podcast, José Andrés and I talk about, in more depth and detail, what the experience is like. If anybody's interested in how the first two recipients of this award are thinking about it, should definitely check out episode one of the podcast.I, uh, will do. Going back a few years here, and in relation to your past efforts, what did you see as the key to the bipartisan effort behind the First Step Act?There are some areas where the two parties are just not going to agree and should therefore just battle it out, but that's not the vast majority of issues. If you take an issue like criminal justice, everybody understands that the liberals have our stake of the fight. Progressive are very passionate about social justice and racial justice. So the incarceration industry really offends progressive values, but there are conservative values that the incarceration industry also offends. Conservatives don't like big, staled, unaccountable government bureaucracies that eat up a ton of money and produce bad results. Well, that's the prison system to a T. Right-wing libertarians don't like the government gobbling up more and more people liberties. That's what the prison industry does every day. And there are a lot of conservative Christians who wonder, "Where is the redemption? Where's the second chances?" How can a fallen center rise again, if the prison industry just destroy people's lives and brands them forever as being unemployable and unworthy?And so it's when you find those areas where liberal passion for justice can line up with conservative passion for liberty, you can build a Liberty & Justice For All Coalition, and that's what we did. You had the strongest progressives and the strongest conservatives voting together during the Trump administration to pass a bill that by some calculations has helped 20,000 people come home from federal prison much earlier than they would have. That's the kind of bottom-up bipartisanship that I think we need more of. And by the way, we talk about that kind of stuff on the podcast. Also, we talk about climate solutions, which you mentioned earlier. Everybody knows that progressives are concerned about climate because of concern about future generations and species being loss. What people don't talk about is the fact that you have a bunch of red state farmers and ranchers who are getting pummeled by floods and fires and droughts, and who are very close to the land. And they know that the climate is changing rapidly and they would be very open to certain types of climate solutions, especially those that would pay them more money to capture and sequester carbon in the soil with more advanced agricultural techniques.So I spend a lot of time looking for those unlikely overlaps of interests. And I call those places, where you're shocked and surprised, and you're like, "Wait a minute. These two groups that you think would be far apart actually are just putting the emphasis emphasis on a different syllable, but they're saying the same thing." I call those areas of unexpected overlap "Uncommon Ground." And when you find them, whether it's on addiction or criminal justice or climate, or youth opportunity, I think we should go deep there and pull as many people into those conversations as possible. And that's the point of the podcast. Jay-Z, Van Jones, Robert Kraft, and Michael Rubin at a Reform Alliance event in 2019. Kevin Mazur/Getty Images What has your participation in the Reform Alliance meant to you, and what do you see coming from your continued role in the organization?It's just an extraordinary opportunity to work with people who have massive hearts, big brains, and big wallets, who want to make a difference. And I learn from each and every board member I every time I'm in communication with them. The level of concern and passion that those board members have is really mind-blowing. As well-known as they are, they do a lot of work behind the scenes that they deliberately don't want acknowledged, 'cause they don't want to create a feeding frenzy every time they show up. But, you know, the number of governors and senators and mayors that have gotten phone calls from a Reform Alliance board members I think would shock a lot of your readers. And then also they've built an unbelievable team of policy experts and advocates that have been able to pass bills in eight states, 13 bills and eight states, in just a two year period. That's a pretty, pretty fast clip.Some people, I think, thought this was going to be a vanity project, but it's turning out to be a much more impactful organization already than some of the skeptics were suggesting. And the issue that was the Reform Alliance takes on, probation and parole reform, really has not had a national champion until we launched. And two thirds of the people who were under the control of the criminal justice system are not in prison or jail. They're on either probation or parole, and their lives can be a living hell because it is so easy to be sent back to prison. If you show up late to a meeting with your parole officer or you get caught talking to someone who has a criminal record, and you're not doing anything, you can be back in prison and lose your job or your apartment and custody of your kids. So every day is just an incredibly anxiety-provoking nightmare and that level of stress doesn't make any community better or safer. So we're very proud that we are beginning to help to change that system, to make it a lot more humane, a lot more effective. ...Look, my view about this whole situation that we're in is that the divisive voices in our country, no matter what political ideology or race, are just getting way too much attention. And the unifying voices, the problem-solving voices, the healing voices are just getting way too little attention. And I think now's the time for people who've got really great ideas to solve the problems, to have a platform. And that's really what "Uncommon Ground" is all about. It's a platform for people who are exciting people, who are interesting people, who also are about that business of solving problems, to finally be heard.Read the original article on Business Insider.....»»

Category: topSource: businessinsider7 hr. 36 min. ago

Democrats are set to unveil a new billionaire"s tax and some of the wealthiest Americans are glad. Here are some of the ultrawealthy who want higher taxes.

The group includes Mark Cuban, George Soros, Ray Dalio, Abigail Disney, members of the Pritzker and Gund families, and a Facebook cofounder. 'Shark Tank' star Mark Cuban Christopher Willard/ABC via Getty Images To pay for Biden's social spending agenda, Democrats are considering a new tax targeting billionaires. Billionaires including Mark Cuban, Marc Benioff, Ray Dalio, and George Soros have publicly called for higher taxes on the wealthy. A wealth tax would make ultrawealthy Americans pay the government a small percentage of their net worth each year. In 2020, Bill Gates' New Year's resolution was to get the federal government to raise taxes on the ultrawealthy - including himself. Now, that wish might come true, as Democrats eye higher taxes on America's billionaires."We've updated our tax system before to keep up with changing times, and we need to do it again, starting with raising taxes on people like me," Gates wrote on his blog at the time.That's exactly what Democrats are planning to propose this week. A plan authored by Sen. Ron Wyden would target the unrealized gains - value that assets like stock accrue - of billionaires every year. It's not quite an outright wealth tax, but it comes close. And it would pay for the social safety net bill Democrats hope to vote on this week that includes expansions to healthcare and childcare for Americans.While Elon Musk ripped the plan on Twitter, other billionaires from Warren Buffett to George Soros have proposed a wealth tax as a way to combat America's growing wealth gap and fund healthcare and education initiatives. In the run-up to the 2020 presidential election, a group of 18 ultrawealthy Americans, including Abigail Disney and members of the Pritzker and Gund families, published an open letter asking presidential candidates to support a moderate wealth tax.Politicians, too, rolled out proposals on this front: A wealth tax like the one proposed by Sen. Elizabeth Warren would make ultrawealthy Americans pay the federal government a small percentage of their net worth each year. Bernie Sanders unveiled a wealth-tax plan that is even more aggressive than Warren's.Inequality exacerbated by the pandemic has more strenuously renewed calls for a wealth tax, as America's billionaires added $2.1 trillion to their fortunes as millions dealt with with pandemic-induced unemployment and poverty. Mounting inequality isn't a new issue: In 2018, income inequality in the US reached its highest level in more than half a century. The ultrawealthy actually paid a smaller portion of their income in taxes than average Americans in 2018, an analysis of tax data by the University of California at Berkeley's Emmanuel Saez and Gabriel Zucman found.While the idea of using a wealth tax to solve America's inequality problem has gained traction in recent years, proposals have been hampered by questions over the effectiveness and the constitutionality of such a tax, Business Insider previously reported.Keep reading to learn more about some of the most high-profile billionaires and multimillionaires who have publicly supported raising taxes on the 1%, listed in chronological order. The founder of Jimmy John's says it's "bullshit" that wealthy people are taking out loans to live on that are free of taxes. Irene Jiang / Business Insider Jimmy John Liautaud told The Daily Beast that he knows a lot of people have "accumulated massive, massive wealth" — and then borrow money. As ProPublica reported, taking out loans against large fortunes is one method that the ultra-wealthy employ to reduce how much they owe in taxes, since loans aren't taxed."That's tax free. And I think it's bullshit," Liautaud told the Daily Beast.When it comes to gains for assets, he said: "Warren Buffett or Bill Gates, every year this shit's compounding. I paid more tax than Warren Buffett. And I'm worth 2 billion fucking dollars." Dallas Mavericks owner Mark Cuban proposed taxing the wealthy to offset cutting payroll taxes in a November 2017 tweet. Getty/Michael Kovac —Mark Cuban (@mcuban) November 24, 2017Now best known for his appearances on ABC's "Shark Tank," Cuban built a $4.5 billion fortune through a lifetime of business deals, including the $5.7 billion sale of Broadcast.com, and his ownership of the Dallas Mavericks, Business Insider reported. Bill Gates has said he's paid over $10 billion in taxes over his lifetime - but he doesn't think that's enough. Bill Gates speaks ahead of former U.S. President Barack Obama at the Gates Foundation Inaugural Goalkeepers event on September 20, 2017 in New York City. Yana Paskova/Getty Images "I need to pay higher taxes," Gates said in a 2018 interview with CNN's Fareed Zakaria. "I've paid more taxes, over $10 billion, than anyone else, but the government should require people in my position to pay significantly higher taxes."In a December 30, 2019, post on his blog, Gates Notes, Gates proposed raising the estate tax and removing the cap on the amount of income subject to Medicare taxes. He also suggested closing the carried interest loophole that allows fund managers to pay lower capital gains rates on their incomes and making state and local taxes fairer, Market Insider's Theron Mohamed previously reported."That's why I'm for a tax system in which, if you have more money, you pay a higher percentage in taxes," Gates wrote. "And I think the rich should pay more than they currently do, and that includes Melinda and me." On CNBC's Squawk Box, Warren Buffett said raising billionaires' taxes is the best way to help "a guy who is a wonderful citizen" but "just doesn't have market skills." Bill Pugliano/Getty "The wealthy are definitely undertaxed relative to the general population," Buffett said on CNBC's "Squawk Box" in February 2019. Buffett has suggested that Congress expand income tax credits for low-income Americans, raising taxes on high earners in the process, CNBC reported. Former Starbucks CEO Howard Schultz said he "should be paying higher taxes" at a CNN town hall in February, but called Rep. Alexandria Ocasio-Cortez's proposed 70% marginal tax rate for millionaires "punitive." Howard Schultz. Owen Hoffmann / Contributor / Getty Images Schultz built a $3.8 billion fortune running the coffee chain, Business Insider previously reported. While Schultz left Starbucks in 2018, he still held onto more than 37.7 million shares — or roughly 3% — of the company's stock. When asked if the wealthy should pay more in taxes on "60 Minutes," billionaire hedge-fund manager Ray Dalio replied: "Of course." Hollis Johnson/Business Insider In the "60 Minutes" segment, Dalio said he thinks the American dream is lost and referred to the wealth gap as a "national emergency." Dalio, 70, founded his hedge fund, Bridgewater Associates, in his apartment in 1975, Business Insider reported. It now has $150 billion in assets under management. Dalio has a net worth of $20 billion, Forbes estimates. Abigail Disney, the granddaughter of The Walt Disney Company cofounder Roy Disney, has made a name for herself as one of the biggest advocates for closing America's wealth gap. Sean Zanni/Patrick McMullan via Getty Images The granddaughter of The Walt Disney Co. cofounder Roy Disney has made a name for herself as one of the company's most outspoken critics. The 59-year-old heiress has criticized the salary of Disney CEO Bob Iger and defended Meryl Streep after she called Walt Disney a "bigot," according to CNN Business.Disney has a net worth of $120 million, she said in July 2019. "The internet says I have half a billion dollars and I might have something close to that if I'd been investing aggressively," Disney told the Financial Times.She testified in support of Elizabeth Warren's proposed wealth tax in April 2021, and called out the methods the ultra-wealthy use to evade taxes in a June essay for the Atlantic.Disney was one of 18 ultrawealthy Americas to sign an open letter in June asking presidential candidates to support a moderate wealth tax. The letter isn't the first time that Disney has spoken out about tax reform. Disney criticized the 2017 Republican tax bill in a NowThis video, saying the bill unfairly benefited the wealthy. Heiress Agnes Gund and her daughter Catherine Gund also signed the wealth tax letter. Catherine Gund, left, with her mother, Agnes Gund, and Stanley Whitney Getty Images / Sean Zanni / Contributor In 2015, Forbes estimated that the Gund family had a net worth of $3.4 billion and ranked them among the 100 wealthiest families in America.Agnes Gund, 83, used the fortune she inherited from her father, the president of an Ohio-based bank, to become a philanthropist in arts and social justice, according to The New York Times. Agnes Gund received the National Medal of the Arts in 1997 from President Bill Clinton for her work, which included serving as the president of the Museum of Modern Art in New York.Catherine Gund, 56, is an Emmy-winning film director and producer. Gund founded nonprofit production studio Aubin Pictures in 1996, according to her previous biography on the studio's website. The Gunds weren't the only family who signed the letter together. So did Facebook cofounder Chris Hughes and his husband, political activist Sean Eldridge. Chris Hughes Facebook Page Hughes is a cofounder of Facebook. He left the social network in 2007 to become the online organizer for Barack Obama's first presidential campaign. Despite calling for Facebook to be broken up in May 2019, Hughes had a stake in the company worth $850 million, Newsweek reports. In 2016, Forbes put Hughes' net worth at $430 million.In April 2021, Hughes told CNBC that Americans are "throwing out the idea that markets were ever free" and that it's time for a new capitalism.Eldridge is a political activist and former congressional candidate in New York, according to Vanity Fair. Eldridge was born in Canada. Ian and Liesel Pritzker Simmons signed the letter together. Ian Simmons, Co-Founder and Principal of Blue Haven Initiative, poses at his office in Cambridge, Mass., Friday, Oct. 18, 2019. A handful of billionaires and multimillionaires are making a renewed push for the government to raise their taxes and siphon away some of their holdings. AP Photo/Michael Dwyer "This is really a conservative position about increasing the stability of the economy in the long term and having an efficient source of taxation," Simmons told the Associated Press.Simmons, 44, serves as the cofounder and principal of impact investing firm Blue Haven Initiative alongside his wife and fellow signatory, Liesel Pritzker Simmons, according to the firm's website. Simmons is the heir to a family fortune that stems from the construction of locks on the Erie Canal, according to Forbes.Pritzker Simmons, an heir to the Pritzker family fortune, has a net worth of $600 million, according to a 2013 Forbes article. Simmons, now 35, is also a cofounder and principal of Blue Haven Initiative.As a child, she starred in several big-name Hollywood productions, including "A Little Princess" and "Air Force One," alongside Harrison Ford. In 2002, Forbes reports, she sued her father and the Pritzker family and came away from it with a $500 million payout. Simmons called retired Massachusetts real-estate developer Robert Bowditch and convinced him to sign the letter, too. Shutterstock "Charitable giving by itself simply cannot provide enough money to support public goods and services, such as public education, roads and bridges, clean air," Bowditch told the Associated Press in October 2019. "It has to be done by taxes."Bowditch has previously advocated for raising taxes on the wealthy: In 2010, he signed an open letter to President Obama asking him to allow tax cuts for millionaires to expire, according to a CBS affiliate in Boston. Billionaire financier George Soros signed the letter with his son, Alexander Soros. Manny Carabel/WireImage According to his personal website, Alexander Soros, 35, serves as deputy chair of the Open Society Foundations, a nonprofit founded by his father. George Soros told The New York Times' Andrew Ross Sorkin he supports a wealth tax even though it creates "a moral problem" for him. Yunus Kaymaz/Anadolu Agency/Getty Images "I am in favor of taxing the rich," George Soros, 89, told The New York Times' Andrew Ross Sorkin in October 2019, "including a wealth tax. A financier makes people suspicious ... and it does create a moral problem for me. As I became so successful, it basically put a self-imposed constraint on me that actually interfered with making money."The philanthropist made his fortune running Quantum Fund, which was once the largest hedge fund in the world. Soros has a net worth of $8.3 billion, Business Insider reported. Investor Nick Hanauer believes a wealth tax would be good for America's economy. Courtesy of Nick Hanauer "A wealth tax would not just be fair — it would be pro-growth," Hanauer wrote in an essay advocating for a wealth tax published on Business Insider. "And don't let the trickle-downers tell you otherwise."Hanauer, 62, was an early investor in Amazon, according to his personal website. Business Insider previously reported that Hanauer is a longtime critic of America's income inequality.Business Insider's Rich Feloni reported that Hanauer has said he's not a billionaire, but that, as both he and his wife have signed The Giving Pledge, their combined net worth at least approaches the $1 billion threshold. Heiress and attorney Molly Munger told the Associated Press that seeing empty Newport Beach mansions from her family's boat on Memorial Day made her consider a wealth tax. Lacy O'Toole/CNBC/NBCU Photo Bank via Getty Images "It's just too much to watch that happen at the top and see what is happening at the bottom," Munger told the Associated Press in October 2019. "Isn't it a waste when beautiful homes on the beach are empty for most of the summer?"Munger, 71, is the oldest daughter of Berkshire Hathaway vice chairman Charlie Munger. Munger is a Harvard Law graduate who works as a civil rights attorney in Pasadena, California, according to the Los Angeles Times. In 2012, she advocated for a tax hike in California to boost funding for the state's public schools. Billionaire philanthropist Eli Broad wrote an op-ed in The New York Times in June 2019 advocating for a wealth tax, saying American capitalism "isn't working." AP Broad doesn't believe that his philanthropic work and other policies including a $15 minimum wage, expanding access to health care, and reforming public education are doing enough to help low-income Americans, he wrote in The New York Times."It's time to start talking seriously about a wealth tax," Broad wrote in The Times. "I simply believe it's time for those of us with great wealth to commit to reducing income inequality, starting with the demand to be taxed at a higher rate than everyone else."Broad built a $6.9 billion fortune after cofounding home builder Kaufman & Broad, according to Forbes. Salesforce co-CEO Marc Benioff proposed a wealth tax in an October New York Times essay. Kimberley White/Getty Images "Local efforts — like the tax I supported last year on San Francisco's largest companies to address our city's urgent homelessness crisis — will help," Benioff wrote in The New York Times in October 2019. "Nationally, increasing taxes on high-income individuals like myself would help generate the trillions of dollars that we desperately need to improve education and health care and fight climate change."Benioff built a $6.5 billion fortune after founding software developer Salesforce. Benioff currently serves as the company's CEO. Michael Bloomberg has made raising taxes on the wealthy a key part of his 2020 presidential campaign. FILE PHOTO: Democratic U.S. presidential candidate Michael Bloomberg addresses a news conference after launching his presidential bid in Norfolk, Virginia Reuters Bloomberg has included promises to support "taxing wealthy people like me" in ads since launching his campaign in November, Bloomberg News reported at the time.As Politico reported, Bloomberg ultimately proposed a 5% surtax for people earning over $5 million annually — as well as an increase to the capital gains rate and corporate tax rate. But Bloomberg said during his campaign that he believes that Warren and Sanders' wealth tax "just doesn't work," he said at campaign stop in Phoenix in November. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 26th, 2021

Democrats are set to unveil a new billionaire"s tax. Here"s a look at the wealthiest Americans who want to pay more.

The group includes Mark Cuban, George Soros, Ray Dalio, Abigail Disney, members of the Pritzker and Gund families, and a Facebook cofounder. 'Shark Tank' star Mark Cuban Christopher Willard/ABC via Getty Images To pay for Biden's social spending agenda, Democrats are considering a new tax targeting billionaires. Billionaires including Mark Cuban, Marc Benioff, Ray Dalio, and George Soros have publicly called for higher taxes on the wealthy. A wealth tax would make ultrawealthy Americans pay the government a small percentage of their net worth each year. In 2020, Bill Gates' New Year's resolution was to get the federal government to raise taxes on the ultrawealthy - including himself. Now, that wish might come true, as Democrats eye higher taxes on America's billionaires."We've updated our tax system before to keep up with changing times, and we need to do it again, starting with raising taxes on people like me," Gates wrote on his blog at the time.That's exactly what Democrats are planning to propose this week. A plan authored by Sen. Ron Wyden would target the unrealized gains - value that assets like stock accrue - of billionaires every year. It's not quite an outright wealth tax, but it comes close. And it would pay for the social safety net bill Democrats hope to vote on this week that includes expansions to healthcare and childcare for Americans.While Elon Musk ripped the plan on Twitter, other billionaires from Warren Buffett to George Soros have proposed a wealth tax as a way to combat America's growing wealth gap and fund healthcare and education initiatives. In the run-up to the 2020 presidential election, a group of 18 ultrawealthy Americans, including Abigail Disney and members of the Pritzker and Gund families, published an open letter asking presidential candidates to support a moderate wealth tax.Politicians, too, rolled out proposals on this front: A wealth tax like the one proposed by Sen. Elizabeth Warren would make ultrawealthy Americans pay the federal government a small percentage of their net worth each year. Bernie Sanders unveiled a wealth-tax plan that is even more aggressive than Warren's.Inequality exacerbated by the pandemic has more strenuously renewed calls for a wealth tax, as America's billionaires added $2.1 trillion to their fortunes as millions dealt with with pandemic-induced unemployment and poverty. Mounting inequality isn't a new issue: In 2018, income inequality in the US reached its highest level in more than half a century. The ultrawealthy actually paid a smaller portion of their income in taxes than average Americans in 2018, an analysis of tax data by the University of California at Berkeley's Emmanuel Saez and Gabriel Zucman found.While the idea of using a wealth tax to solve America's inequality problem has gained traction in recent years, proposals have been hampered by questions over the effectiveness and the constitutionality of such a tax, Business Insider previously reported.Keep reading to learn more about some of the most high-profile billionaires and multimillionaires who have publicly supported raising taxes on the 1%, listed in chronological order. The founder of Jimmy John's says it's "bullshit" that wealthy people are taking out loans to live on that are free of taxes. Irene Jiang / Business Insider Jimmy John Liautaud told The Daily Beast that he knows a lot of people have "accumulated massive, massive wealth" — and then borrow money. As ProPublica reported, taking out loans against large fortunes is one method that the ultra-wealthy employ to reduce how much they owe in taxes, since loans aren't taxed."That's tax free. And I think it's bullshit," Liautaud told the Daily Beast.When it comes to gains for assets, he said: "Warren Buffett or Bill Gates, every year this shit's compounding. I paid more tax than Warren Buffett. And I'm worth 2 billion fucking dollars." Dallas Mavericks owner Mark Cuban proposed taxing the wealthy to offset cutting payroll taxes in a November 2017 tweet. Getty/Michael Kovac —Mark Cuban (@mcuban) November 24, 2017Now best known for his appearances on ABC's "Shark Tank," Cuban built a $4.5 billion fortune through a lifetime of business deals, including the $5.7 billion sale of Broadcast.com, and his ownership of the Dallas Mavericks, Business Insider reported. Bill Gates has said he's paid over $10 billion in taxes over his lifetime - but he doesn't think that's enough. Bill Gates speaks ahead of former U.S. President Barack Obama at the Gates Foundation Inaugural Goalkeepers event on September 20, 2017 in New York City. Yana Paskova/Getty Images "I need to pay higher taxes," Gates said in a 2018 interview with CNN's Fareed Zakaria. "I've paid more taxes, over $10 billion, than anyone else, but the government should require people in my position to pay significantly higher taxes."In a December 30, 2019, post on his blog, Gates Notes, Gates proposed raising the estate tax and removing the cap on the amount of income subject to Medicare taxes. He also suggested closing the carried interest loophole that allows fund managers to pay lower capital gains rates on their incomes and making state and local taxes fairer, Market Insider's Theron Mohamed previously reported."That's why I'm for a tax system in which, if you have more money, you pay a higher percentage in taxes," Gates wrote. "And I think the rich should pay more than they currently do, and that includes Melinda and me." On CNBC's Squawk Box, Warren Buffett said raising billionaires' taxes is the best way to help "a guy who is a wonderful citizen" but "just doesn't have market skills." Bill Pugliano/Getty "The wealthy are definitely undertaxed relative to the general population," Buffett said on CNBC's "Squawk Box" in February 2019. Buffett has suggested that Congress expand income tax credits for low-income Americans, raising taxes on high earners in the process, CNBC reported. Former Starbucks CEO Howard Schultz said he "should be paying higher taxes" at a CNN town hall in February, but called Rep. Alexandria Ocasio-Cortez's proposed 70% marginal tax rate for millionaires "punitive." Howard Schultz. Owen Hoffmann / Contributor / Getty Images Schultz built a $3.8 billion fortune running the coffee chain, Business Insider previously reported. While Schultz left Starbucks in 2018, he still held onto more than 37.7 million shares — or roughly 3% — of the company's stock. When asked if the wealthy should pay more in taxes on "60 Minutes," billionaire hedge-fund manager Ray Dalio replied: "Of course." Hollis Johnson/Business Insider In the "60 Minutes" segment, Dalio said he thinks the American dream is lost and referred to the wealth gap as a "national emergency." Dalio, 70, founded his hedge fund, Bridgewater Associates, in his apartment in 1975, Business Insider reported. It now has $150 billion in assets under management. Dalio has a net worth of $20 billion, Forbes estimates. Abigail Disney, the granddaughter of The Walt Disney Company cofounder Roy Disney, has made a name for herself as one of the biggest advocates for closing America's wealth gap. Sean Zanni/Patrick McMullan via Getty Images The granddaughter of The Walt Disney Co. cofounder Roy Disney has made a name for herself as one of the company's most outspoken critics. The 59-year-old heiress has criticized the salary of Disney CEO Bob Iger and defended Meryl Streep after she called Walt Disney a "bigot," according to CNN Business.Disney has a net worth of $120 million, she said in July 2019. "The internet says I have half a billion dollars and I might have something close to that if I'd been investing aggressively," Disney told the Financial Times.She testified in support of Elizabeth Warren's proposed wealth tax in April 2021, and called out the methods the ultra-wealthy use to evade taxes in a June essay for the Atlantic.Disney was one of 18 ultrawealthy Americas to sign an open letter in June asking presidential candidates to support a moderate wealth tax. The letter isn't the first time that Disney has spoken out about tax reform. Disney criticized the 2017 Republican tax bill in a NowThis video, saying the bill unfairly benefited the wealthy. Heiress Agnes Gund and her daughter Catherine Gund also signed the wealth tax letter. Catherine Gund, left, with her mother, Agnes Gund, and Stanley Whitney Getty Images / Sean Zanni / Contributor In 2015, Forbes estimated that the Gund family had a net worth of $3.4 billion and ranked them among the 100 wealthiest families in America.Agnes Gund, 83, used the fortune she inherited from her father, the president of an Ohio-based bank, to become a philanthropist in arts and social justice, according to The New York Times. Agnes Gund received the National Medal of the Arts in 1997 from President Bill Clinton for her work, which included serving as the president of the Museum of Modern Art in New York.Catherine Gund, 56, is an Emmy-winning film director and producer. Gund founded nonprofit production studio Aubin Pictures in 1996, according to her previous biography on the studio's website. The Gunds weren't the only family who signed the letter together. So did Facebook cofounder Chris Hughes and his husband, political activist Sean Eldridge. Chris Hughes Facebook Page Hughes is a cofounder of Facebook. He left the social network in 2007 to become the online organizer for Barack Obama's first presidential campaign. Despite calling for Facebook to be broken up in May 2019, Hughes had a stake in the company worth $850 million, Newsweek reports. In 2016, Forbes put Hughes' net worth at $430 million.In April 2021, Hughes told CNBC that Americans are "throwing out the idea that markets were ever free" and that it's time for a new capitalism.Eldridge is a political activist and former congressional candidate in New York, according to Vanity Fair. Eldridge was born in Canada. Ian and Liesel Pritzker Simmons signed the letter together. Ian Simmons, Co-Founder and Principal of Blue Haven Initiative, poses at his office in Cambridge, Mass., Friday, Oct. 18, 2019. A handful of billionaires and multimillionaires are making a renewed push for the government to raise their taxes and siphon away some of their holdings. AP Photo/Michael Dwyer "This is really a conservative position about increasing the stability of the economy in the long term and having an efficient source of taxation," Simmons told the Associated Press.Simmons, 44, serves as the cofounder and principal of impact investing firm Blue Haven Initiative alongside his wife and fellow signatory, Liesel Pritzker Simmons, according to the firm's website. Simmons is the heir to a family fortune that stems from the construction of locks on the Erie Canal, according to Forbes.Pritzker Simmons, an heir to the Pritzker family fortune, has a net worth of $600 million, according to a 2013 Forbes article. Simmons, now 35, is also a cofounder and principal of Blue Haven Initiative.As a child, she starred in several big-name Hollywood productions, including "A Little Princess" and "Air Force One," alongside Harrison Ford. In 2002, Forbes reports, she sued her father and the Pritzker family and came away from it with a $500 million payout. Simmons called retired Massachusetts real-estate developer Robert Bowditch and convinced him to sign the letter, too. Shutterstock "Charitable giving by itself simply cannot provide enough money to support public goods and services, such as public education, roads and bridges, clean air," Bowditch told the Associated Press in October 2019. "It has to be done by taxes."Bowditch has previously advocated for raising taxes on the wealthy: In 2010, he signed an open letter to President Obama asking him to allow tax cuts for millionaires to expire, according to a CBS affiliate in Boston. Billionaire financier George Soros signed the letter with his son, Alexander Soros. Manny Carabel/WireImage According to his personal website, Alexander Soros, 35, serves as deputy chair of the Open Society Foundations, a nonprofit founded by his father. George Soros told The New York Times' Andrew Ross Sorkin he supports a wealth tax even though it creates "a moral problem" for him. Yunus Kaymaz/Anadolu Agency/Getty Images "I am in favor of taxing the rich," George Soros, 89, told The New York Times' Andrew Ross Sorkin in October 2019, "including a wealth tax. A financier makes people suspicious ... and it does create a moral problem for me. As I became so successful, it basically put a self-imposed constraint on me that actually interfered with making money."The philanthropist made his fortune running Quantum Fund, which was once the largest hedge fund in the world. Soros has a net worth of $8.3 billion, Business Insider reported. Investor Nick Hanauer believes a wealth tax would be good for America's economy. Courtesy of Nick Hanauer "A wealth tax would not just be fair — it would be pro-growth," Hanauer wrote in an essay advocating for a wealth tax published on Business Insider. "And don't let the trickle-downers tell you otherwise."Hanauer, 62, was an early investor in Amazon, according to his personal website. Business Insider previously reported that Hanauer is a longtime critic of America's income inequality.Business Insider's Rich Feloni reported that Hanauer has said he's not a billionaire, but that, as both he and his wife have signed The Giving Pledge, their combined net worth at least approaches the $1 billion threshold. Heiress and attorney Molly Munger told the Associated Press that seeing empty Newport Beach mansions from her family's boat on Memorial Day made her consider a wealth tax. Lacy O'Toole/CNBC/NBCU Photo Bank via Getty Images "It's just too much to watch that happen at the top and see what is happening at the bottom," Munger told the Associated Press in October 2019. "Isn't it a waste when beautiful homes on the beach are empty for most of the summer?"Munger, 71, is the oldest daughter of Berkshire Hathaway vice chairman Charlie Munger. Munger is a Harvard Law graduate who works as a civil rights attorney in Pasadena, California, according to the Los Angeles Times. In 2012, she advocated for a tax hike in California to boost funding for the state's public schools. Billionaire philanthropist Eli Broad wrote an op-ed in The New York Times in June 2019 advocating for a wealth tax, saying American capitalism "isn't working." AP Broad doesn't believe that his philanthropic work and other policies including a $15 minimum wage, expanding access to health care, and reforming public education are doing enough to help low-income Americans, he wrote in The New York Times."It's time to start talking seriously about a wealth tax," Broad wrote in The Times. "I simply believe it's time for those of us with great wealth to commit to reducing income inequality, starting with the demand to be taxed at a higher rate than everyone else."Broad built a $6.9 billion fortune after cofounding home builder Kaufman & Broad, according to Forbes. Salesforce co-CEO Marc Benioff proposed a wealth tax in an October New York Times essay. Kimberley White/Getty Images "Local efforts — like the tax I supported last year on San Francisco's largest companies to address our city's urgent homelessness crisis — will help," Benioff wrote in The New York Times in October 2019. "Nationally, increasing taxes on high-income individuals like myself would help generate the trillions of dollars that we desperately need to improve education and health care and fight climate change."Benioff built a $6.5 billion fortune after founding software developer Salesforce. Benioff currently serves as the company's CEO. Michael Bloomberg has made raising taxes on the wealthy a key part of his 2020 presidential campaign. FILE PHOTO: Democratic U.S. presidential candidate Michael Bloomberg addresses a news conference after launching his presidential bid in Norfolk, Virginia Reuters Bloomberg has included promises to support "taxing wealthy people like me" in ads since launching his campaign in November, Bloomberg News reported at the time.As Politico reported, Bloomberg ultimately proposed a 5% surtax for people earning over $5 million annually — as well as an increase to the capital gains rate and corporate tax rate. But Bloomberg said during his campaign that he believes that Warren and Sanders' wealth tax "just doesn't work," he said at campaign stop in Phoenix in November. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 26th, 2021

SCOTT GALLOWAY: WeWork finally went public this week. Don"t let the stock price fool you - the company still loves burning money.

It took the greatest catastrophe in IPO history for Adam Neumann to realize he's not fit to teach, writes Galloway. Former WeWork CEO Adam Neumann. Michael Kovac/Getty Images for WeWork Scott Galloway is a bestselling author and professor of marketing at NYU Stern. The following is a blog post, republished with permission, that originally ran on his blog, "No Mercy / No Malice." In it, Galloway discusses the recent WeWork IPO and the company's financial history. Two years ago, WeWork's IPO was aborted, and the company was put on SoftBank life-support. Things changed yesterday. WeWork took its first steps in the public markets, opening at $9.5 billion, which is a fifth of its 2019 valuation. Sanity restored.The stock's doing well. It closed up 13.5%, which is an especially nice gift to Adam Neumann, whose 11% ownership is now worth more than $1 billion. He celebrated in standard douchebaggery: spraying champagne at the Standard Hotel in a shirt that read "Student for Life." It took the greatest catastrophe in IPO history for Neumann to realize he's not fit to teach.But don't let the stock price fool you. WeWork still loves burning money. The company lost more billions over the past 18 months, a nasty habit investors expect it'll drop once the world returns to more flexible working patterns. I wrote about this habit earlier this year - not much has changed.[The following was originally published on May 28, 2021.]MeWorkI've lost a lot of other people's money. The most stressful times in my life have been when people believed in me and invested tens (if not hundreds) of millions in my company or idea, only to see their capital go up in smoke. I've also made a lot of people a lot of money - but only in America would someone with my (lack of) pedigree be given this many swings at the plate.To be a truly great investor or operator/CEO, you need to be a bit of a sociopath: You have to be able to sleep at night even as you lose other people's hard-earned money or lay people off. Working with "OPM" (i.e., Other People's Money) is often phrased as a positive, but the real luxury is to be in a position to lose your own capital. If things go wrong, it's a private failure.The willingness to risk capital on a captain and harpoons (the 19th century whaling sector was proto-venture capital) has always been a key ingredient in the secret sauce of the US economy. But the secret is out. While the US still produces the most unicorns, and the most mega-corporations, China is gaining … fast. Interestingly, despite the rhetoric, re: China challenging US hegemony, it's European innovation that has drowned in the rising red tide. But that's another post. Scott Galloway We should celebrate billion-dollar successes, so long as they come at the risk of failure - the whaling captain and the entrepreneur earn their wealth in part thanks to their willingness to come home empty-handed, or not at all. However, there's a new class of billionaire in America. Meet the MeWork generation, which makes their fortune despite returning to harbor with less than they embarked with.To help identify members of the MeWork generation (they can be any age), we've devised two metrics: the Daily Benjamin Burn™ (DBB) and the Earn-to-Burn Ratio™ (EBR). The first is how much money an executive lit on fire per day during their tenure. The second is the percentage of those lost Benjamins they siphoned off for themselves - think of it as a commission on destruction. In an efficient and fair (dangerous word) market, the EBR ratio would be zero. If we can measure someone's burn in daily stacks of hundred-dollar bills, they've created no value and should get no compensation. Spoiler: That's not what happens.Daily Benjamin burn™What does the DBB look like in practice? A lot like Quibi. That likely won't mean anything to you, unless you're one of the dozens and dozens of people who subscribed to the short-lived short-video service. In 2018 Jeffrey Katzenberg and Meg Whitman raised $1.75 billion, launched a bad app with worse content, and shut it down six months later. Roku combed through the rubble and found $100 million, so Jeff and Meg immolated $1.65 billion in 750 days, or $2.2 million per day. If you stacked that $1.65 billion in 100-dollar bills, you'd have a pile over a mile high, or the height of 2.2 Burj Khalifas, the world's tallest building.Eating my own BenjaminsIn 2008, I raised $600 million from a hedge fund, became the largest shareholder in the New York Times Co., and ran an activist campaign against the Gray Lady. They put me on the board, where I ranted about the evils of Google, advocated for the divestiture of noncore assets, envisioned sunlit uplands of subscription revenue, and … lit Benjamins on fire. During my 24-month tour of duty watching the Great Recession kick ad-supported media in the groin, I managed to turn $600 million into $350 million, for a DBB of about $350,000. The stack of Benjamins I lost would have reached only to the top of 30 Rockefeller Plaza. Only. Jesus …I. Want. To. Throw. Up. Scott Galloway Earn-to-burn ratio™Jeff, Meg, and I all made an old-school mistake. We failed to find a greater fool (e.g., the public markets, gullible board members, SoftBank) to secure a mega-payout for our Bonfires of the Benjamins. I was paid approximately $500,000 in board fees and a retainer from the fund; I speculate that Jeff and Meg pocketed more (their compensation remains private). But none of us pocketed millions.That brings us to the Earn-to-Burn Ratio™ and the Hall of Fame for broken compensation.EBR Hall of FameIn 2012, Yahoo replaced its CEO with an executive from Google: Marissa Mayer. But the new chief executive made a series of poor decisions, including canceling the company's telecommuting policy while she worked from home herself and paying $1.1 billion for a porn site, Tumblr. (Note: Six years later, Yahoo sold Tumblr for $3 million.)When Mayer took over, Yahoo was valued at $14.4 billion (not including a 20% ownership stake in Alibaba). In July 2016 the company sold itself to Verizon for $4.5 billion, and Mayer was gone. That's $9.9 billion turned to ash in four years (or 13.5 Burj Khalifas), for a DBB of $6.8 million. Mayer's compensation began with a $30 million signing bonus and went up from there, totaling an estimated $365 million, giving her a $250,000-per-day commission for destroying $7 million per day of other people's money. That's an EBR of 3.7%. Shocking, sure, but not the gold standard.Adam Neumann founded WeWork in 2010, but he didn't start burning Benjamins at epic scale until SoftBank began shoveling billions into the WeWork furnace in August 2017. By the time Neumann was fired in September 2019, SoftBank had invested $10.3 billion; a few months later it wrote off $9.2 billion of that. That's a $13.1 million DBB on SoftBank's money alone, or like flying a decade-old Gulfstream 450 (I browse planes at night - pathetic) into a mountain … every day. Impressive, but only half the story. Neumann's compensation for this value destruction was complicated by his ouster and a subsequent lawsuit, but we estimate he made off with around $1.023 billion, most of it coming out of SoftBank's deep pockets. That's $1.5 million per day during those two years: an EBR of 11.1%. Scott Galloway Joining Mayer and Neumann on the podium is Randall Stephenson, who ran AT&T from 2007 to 2020, when his chief lieutenant, John Stankey, took over. If you owned AT&T stock in 2007, you've collected $25 in dividends since, but you've also watched the share price drop from $39 to $29, for an aggregate annual return of 2.5%. This was a period when S&P 500 companies as a whole returned 9.8% a year - much of it on the back of AT&T's own mobile and data networks - and AT&T's competitor Verizon returned 7.9% to its shareholders. How did Stephenson manage this? Among other mistakes, AT&T spent $67 billion to buy DirecTV (a pending massive write-off whenever Stankey needs a distraction from some other screw-up), blew $4 billion when it failed to acquire T-Mobile, and spent an additional $108 billion to buy WarnerMedia, which Stankey just sold to Discovery. To his (partial) credit, Stankey may have managed to net the Warner deal out as a wash. Scott Galloway So while Stephenson didn't destroy capital outright, he was a poor steward. Had AT&T eked out even a 4% return from 2007 to today, it would have made an additional $50 billion for shareholders. That's an implied DBB of $10 million. How did the board respond to Stephenson's 13-year-long sideways run at the iconic firm? His total comp was at least $250 million, including a $64 million pension as a parting gift. That's an EBR of "only" 0.5% but still a huge payout in the face of mediocre performance.Honorable mentionIn April 2014, toward the end of Steve Ballmer's controversial run as CEO, Microsoft closed the $7.2 billion purchase of 1999's leading mobile handset maker, Nokia. Just 15 months later, Ballmer was gone, and the company wrote off $10 billion for the failed acquisition - the deal was so bad it ended up costing Microsoft more than it paid, mostly due to severance for laid-off Nokia employees. That's an incredible $22.2 million per day, the highest DBB we could find. (Ballmer only made $1.65 million his last year at the company, so a minimal EBR.)Burning Benjamins doesn't just happen in the US In 1998, Daimler-Benz acquired Chrysler for $35 billion in the largest industrial merger ever at the time. After nine years of culture clash and billions in losses, Daimler unloaded 80% of Chrysler to a private equity firm for $7.4 billion, valuing the company at $9.25 billion. That equates to an impressive $7.8 million DBB.How do these corporate money losers compare to the largest and longest-running Ponzi scheme in history? Bernie Madoff ran his fake fund for nearly 30 years, costing investors an estimated $19 billion. The date his fraud began is disputed, but assuming it was 1980, that's a DBB of just under $2 million per day. A massive, decadelong legal project has repaid most of these losses through fines and settlements, and Madoff died in prison, but only after a multidecade run paid for by the destruction of thousands of people's economic security. Scott Galloway MeWorkGrowing up, I loved to watch my dad pack for business trips. He smelled of Aqua Velva and draped his Izod sweaters over a Ram Golf bag. He'd iron the mammoth collar of his Pierre Cardin shirts, fold them around a piece of wax paper, and lay them into his Hartmann luggage like newborns. It was ceremonial, just as when he would wear his kilt. Elegant yet masculine. During one of these pre-business-trip ceremonies, when I was about 8, my mom walked in. I looked at my dad's stuff and asked, "How come dad is so rich, and we're so poor?"My dad loves this story and laughs out loud when he tells it. But it wasn't funny. He's been married - and divorced - four times. There was some financial stress, there was incompatibility. But the real fissure was that there were two Americas … under one roof. Scott Galloway Whether we're executives, parents, or just average citizens, we need to ask ourselves: Have our interests diverged from the people who matter most to us and society? Do our spouses, children, neighbors, employees, and countrymen win and lose in reasonable harmony? Are we part of a family, part of a nation? Or have we become the MeWork generation?Life is so rich,ScottRead the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 22nd, 2021

Macy"s e-commerce business could have an enterprise value of $11.5 billion, Cowen says

Macy's Inc.'s e-commerce platform could have an enterprise value of $11.5 billion, according to estimates from Cowen analysts. Macy's is facing a showdown with activist investors Jana Partners LLC, according to The Wall Street Journal, who are encouraging the department store retailer to separate its e-commerce from its bricks-and-mortar business. Cowen analysts say that, with an $11.5 billion enterprise value, Macy's e-commerce unit could be worth as much as $40 per share. Macy's stock will open Thursday at $26.35. "We believe a spinoff could be possible, and management and the board have and are analyzing this possibility along with other value generating initiatives," said Cowen analysts. "However, we acknowledge that there have not been many successful long-term proof points, and there are significant risks to destabilizing the business and slowing momentum." Cowen rates Macy's stock outperform with a $32 price target, up from $27. Macy's shares have rallied 134.2% for the year to date while the S&P 500 index has gained 20.8% for the period.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatchOct 21st, 2021

Futures Slide On Stagflation Fears As 10Y Yields Spike

Futures Slide On Stagflation Fears As 10Y Yields Spike US index futures dropped after IBM and Tesla fell after their quarterly results, with investors turned cautious awaiting more reports to see the see the adverse impact of supply chain disruption and labor shortages on companies even as jitters remained over elevated inflation and the outlook for China’s property sector. The dollar reversed an overnight drop, while Treasuries fell pushing the 10Y yield to a 5-month high of 1.68%. At 745 a.m. ET, Dow e-minis were down 98 points, or 0.3%, S&P 500 e-minis were down 14 points, or 0.31%, and Nasdaq 100 e-minis were down 49.25 points, or 0.32%. In the premarket, Tesla fell 1% in premarket trading as it said on Wednesday its upcoming factories and supply-chain headwinds would put pressure on its margins after it beat Wall Street expectations for third-quarter revenue. AT&T rose 1% in pre-market trading after exceeding Wall Street’s expectations for profit and wireless subscriber growth. PayPal Holdings also climbed as it explores a $45 billion acquisition of social media company Pinterest Inc., in what could be the biggest technology deal of the year. Dow gained 1.1% after it posted a more than a five-fold jump in third-quarter profit as economic recovery boosted prices for chemicals. IBM plunged 4.7% after it missed market estimates for quarterly revenue as its managed infrastructure business suffered from a decline in orders. Some other notable premarket movers: Digital World Acquisition (DWAC US) surges 30% after the blank-check company agreed to merge with Trump Media & Technology. Former U.S. President Donald Trump says the new company plans to start a social media firm called Truth Social. Denny’s (DENN US) rises 1.4% as the restaurant chain is upgraded to buy from hold at Truist Securities, which sees upside to 3Q estimates, partly due to expanding operating hours. ESS Tech (GWH US) adds 4.6% as Piper Sandler says the stock offers a compelling entry point for investors seeking exposure to energy storage, initiating coverage at overweight. As Bloomberg notes, corporate results have tempered but not dissipated worries that cost pressures could slow the pandemic recovery. Among S&P 500 companies that have disclosed results, 84% have posted earnings that topped expectations, a hair away from the best showing ever. Yet, the firms that surpassed profit forecasts got almost nothing to show for it in the market. And misses got punisheddearly, by the widest margin since Bloomberg started tracking the data in 2017. European equities faded early losses but remain in small negative territory. Euro Stoxx 50 is 0.4% lower having dropped ~0.8% at the open. IBEX lags peers. Miners led a retreat in Europe’s Stocks 600 index, while industrial commodities including copper and iron ore reversed earlier gains; retail and banks were also among the weakest sectors. Concerns about the inflationary impact of higher prices have risen in recent days, with everyone from Federal Reserve officials to Tesla weighing in on cost pressures. Unilever Plc pushed rising raw material costs onto consumers, increasing prices by the most in almost a decade. Meanwhile, Hermes International said sales surged last quarter, showing resilience compared to rival luxury-goods makers. European autos dropped after Volvo Group warned that the global semiconductor shortage and supply-chain challenges will continue to cap truckmaking. Here are some of the biggest European movers today: Soitec shares gain as much as 7.3% in Paris, the stock’s best day since June, after reporting 2Q results and raising its full- year sales forecast. BioMerieux shares rise as much as 5.9%. Sales in 3Q were well ahead of expectations on strong U.S. demand for BioFire respiratory panels, Jefferies (hold) writes in a note. Randstad shares rise as much as 4.7%, the most intraday since Dec. 2020, with RBC (sector perform) saying the staffing firm’s 3Q earnings topped estimates. Sodexo shares rise as much as 4.8% after activist investor Sachem Head took a stake in the French catering co., saying the investment is passive and that Sodexo is going “activist on itself.” Zur Rose shares fall as much as 8.1% after the Swiss online pharmacy cut its growth guidance and posted 3Q sales that Jefferies says missed consensus expectations. Nordic Semi shares drop as much as 7% before recovering some losses, after results; Mirabaud Securities says any weakness in the stock is a “great buying opportunity.” Eurofins shares drop as much as 7.5%, the most in nearly a year, after the laboratory-testing company left its 2021 Ebitda and free cash flow guidance unchanged, which Morgan Stanley says implies a lower Ebitda margin versus previous guidance. Bankinter shares fell as much as 6.6%, most intraday since December. Jefferies highlighted the weaker trend for the Spanish lender’s 3Q net interest income. Earlier in the session, Asian equities fell in late-afternoon trading as investors sold Japanese and Hong Kong-listed tech shares, which helped trigger broader risk aversion among investors. Ailing China Evergrande Group sank on a worsening cash squeeze, while other developers rallied after regulators said their funding needs are being met. The MSCI Asia Pacific Index slid as much as 0.8%, with Japanese equities slumping by the most in over two weeks as the yen -- typically seen as a safe haven -- strengthened against the dollar, likely boosted by technical factors. Toyota Motor and Alibaba were the biggest drags on the regional benchmark as higher bond yields weighed on sentiment toward the tech sector. The story “shapes up to be worries about higher inflation and the follow-on policy response,” said Ilya Spivak, head of Greater Asia at DailyFX. Bucking the downtrend were Chinese developers, which shrugged off China Evergrande Group’s scrapping of a divestment plan and climbed after regulators said risks in the real estate market are controllable and reasonable funding needs are being met. China was one of the region’s top-performing equity markets.  Still, Asian stocks continue to feel pressure from higher U.S. bond yields as the 10-year rate surpassed 1.6%. In addition, earlier optimism about earnings is being muted by the outlook for inflation and supply-chain bottlenecks. Chinese growth, global supply constraints and inflation are “acting as a bit of a brake on markets,” said Shane Oliver, head of investment strategy & chief economist at AMP Capital. However, with U.S. equities trading near a record high, investors are “a bit confused,” he said. Japanese equities fell by the most in over two weeks, extending losses in afternoon trading as the yen strengthened against the dollar. Electronics and auto makers were the biggest drags on the Topix, which fell 1.3%, with all 33 industry groups in the red. Tokyo Electron and Fast Retailing were the largest contributors to a 1.9% loss in the Nikkei 225. S&P 500 futures and the MSCI Asia Pacific Index similarly extended drops. “There has been a general turn in equity market sentiment evident by the afternoon decline in U.S. equity futures and main regional equity indexes,” said Rodrigo Catril, senior foreign-exchange strategist at National Australia Bank Ltd. “The reversal in risk-sensitive FX pairs like the AUD is reflecting this u-turn.” The Japanese currency gained 0.2% to 114.05 per U.S. dollar, while the Australian dollar weakened. The yen is still down 9.5% against the greenback this year, the worst among major currencies. Yen Faces Year-End Slump as U.S. Yield Premium Spikes With Oil The gain in the yen on Thursday probably followed technical indicators suggesting the currency was oversold and positioning seen as skewed, said Shusuke Yamada, head of Japan foreign exchange and rates strategy at Bank of America in Tokyo. The rally may be short-lived, as rising oil prices are expected to worsen Japan’s terms of trade, and monetary policies between Japan and overseas are likely to diverge further In FX, the Bloomberg Dollar Spot Index reversed an earlier loss to rise as much as 0.2% as the greenback advanced versus all its Group- of-10 peers apart from the yen; risk-sensitive currencies, led by the New Zealand dollar, were the worst performers. The pound weakened against the dollar and was little changed versus the euro into the European session. U.K. government borrowing came in significantly lower than official forecasts, but a surge in debt costs sent a warning to the government ahead of the budget next week. The U.K.’s green gilt may price today, subject to market conditions, after being delayed earlier this week. The Australian and New Zealand dollars reversed intraday gains on sales against the yen following losses in regional stock indexes. A kiwi bond auction attracted strong demand. The yen headed for a second session of gains as a selloff in Japanese equities fuels haven bids. Government bonds consolidated. In rates, the Treasury curve flattened modestly as yields on shorter-dated notes inched up, while those on longer ones fell; the bund curve shifted as yields rose about 1bp across the curve. Yields were richer by less than 1bp across long-end of the curve, flattening 2s10s, 5s30s spreads by ~1bp each; 10-year yields rose to a 5 month high of 1.68%, outperforming bunds by 2bp and gilts by 4bp on the day. Long end USTs outperform, richening ~2bps versus both bunds and gilts. Peripheral spreads tighten slightly. U.S. breakevens are elevated ahead of $19b 5Y TIPS new issue auction at 1pm ET. In commodities, oil slipped from 7 year highs, falling amid a broad-based retreat in industrial commodities, though trader focus was glued to a surging market structure as inventories decline in the U.S.; Oil’s refining renaissance is under threat from the natural gas crisis; American drivers will continue to face historically high fuel prices. WTI was lower by 0.5% to trade near $83 while Brent declined 0.8% before finding support near $85. Spot gold is range-bound near $1,785/oz. Base metals are mixed. LME nickel and copper are deep in the red while zinc gains 1.5%.  Bitcoin was volatile and dropped sharply after hitting an all time high just above $66,500. Looking at the day ahead now, and data releases from the US include the weekly initial jobless claims, existing home sales for September, the Conference Board’s leading index for September, and the Philadelphia Fed’s business outlook for October. Central bank speakers will include the Fed’s Waller and the ECB’s Visco, while the Central Bank of Turkey will be making its latest monetary policy decision. Otherwise, earnings releases include Intel, Danaher, AT&T and Union Pacific. Market Snapshot S&P 500 futures down 0.3% to 4,515.25 STOXX Europe 600 down 0.2% to 469.02 MXAP down 0.7% to 199.61 MXAPJ down 0.4% to 659.34 Nikkei down 1.9% to 28,708.58 Topix down 1.3% to 2,000.81 Hang Seng Index down 0.5% to 26,017.53 Shanghai Composite up 0.2% to 3,594.78 Sensex down 1.1% to 60,560.47 Australia S&P/ASX 200 little changed at 7,415.37 Kospi down 0.2% to 3,007.33 Brent Futures down 1.0% to $84.98/bbl Gold spot up 0.2% to $1,785.09 U.S. Dollar Index up 0.11% to 93.67 German 10Y yield up 0.7 bps to -0.119% Euro down 0.1% to $1.1639 Top Overnight News from Bloomberg China Evergrande Group scrapped talks to offload a stake in its property-management arm and said real estate sales plunged about 97% during peak home-buying season, worsening its liquidity crisis on the eve of a dollar-bond deadline that could tip the company into default. Its shares plunged as much as 14% on Thursday. China’s goods imports from the U.S. have only reached about 53% of the $200 billion worth of additional products and services it promised to buy under the trade deal signed last year, far behind its purchasing target. Signs that policy makers are accelerating toward an interest-rate hike have traders fumbling around to figure out what that means for sterling. Money managers at Jupiter Asset Management and Aberdeen Asset Management turned neutral in recent days, following similar moves by Amundi SA and William Blair Investment Management. The price on eight out of 10 bonds sold in the first three quarters of this year by European investment-grade borrowers fell after issuance, wiping almost 23.5 billion euros ($27.3 billion) from portfolios. The Turkish lira is looking vulnerable as speculation grows that policy makers will cut interest rates again despite the deteriorating inflation outlook. Option traders see a more than 60% chance that the currency will weaken to an all-time-low of 9.50 per U.S. dollar over the next month, according to Bloomberg pricing. That’s the next key psychological threshold for a market trading largely in uncharted territory ahead of Thursday’s decision. A more detailed look at global markets courtesy of Newsquawk Asia-Pac indices traded somewhat mixed after the similar performance stateside where the broader market extended on gains in which the DJIA touched a fresh record high and the S&P 500 also briefly approached within 5 points of its all-time peak as attention remained on earnings, although the Nasdaq lagged with tech and duration-sensitive stocks pressured by higher longer-term yields. ASX 200 (+0.1%) was positive as Victoria state approaches the end of the lockdown at midnight and with the index led by outperformance in mining stocks and real estate. However, gains were capped amid weakness in energy as shares in Woodside Petroleum and Santos were pressured following their quarterly production results in which both posted a decline in output from a year ago, albeit with a jump in revenue due to the rampant energy prices, while Woodside also flagged a 27% drop in Wheatstone gas reserves. Nikkei 225 (-1.9%) felt the pressure from the pullback in USD/JPY and with focus shifting to upcoming elections whereby election consulting firm J.A.G Japan sees the LDP losing 40 seats but win enough to maintain a majority with a projected 236 seats at the 465-strong Lower House. Hang Seng (-0.5%) and Shanghai Comp. (+0.2%) were varied despite another respectable PBoC liquidity effort with the mood slightly clouded as Evergrande concerns persisted with Co. shares suffering double-digit percentage losses after it resumed trade for the first time in three weeks and after its deal to sell a stake in Evergrande Property Services fell through, while reports that Modern Land China cancelled its USD 250mln bond repayment plan on liquidity issues added to the ongoing default concerns although it was later reported that Evergrande secured a three-month extension on USD 260mln Jumbo Fortune bond which matured on October 3rd. Finally, 10yr JGBs traded flat with the underperformance in Japanese stocks helping government bonds overlook the pressure in global counterparts and continued losses in T-note futures following the weak 20yr auction stateside, although demand for JGBs was limited by the absence of BoJ purchases. Top Asian News China Vows to Keep Property Curbs, Evergrande Risk Seen Limited Abu Dhabi Funds Hunt for Asian Unicorns Ahead of IPOs: ECM Watch Biden’s Pick for China Envoy Draws Sharp Lines With Beijing Carlyle, KKR Among Firms Said to Mull $2 Billion Tricor Bid Bourses in Europe have held onto the downside bias seen since the cash open, but with losses less pronounced (Euro Stoxx 50 -0.4%; Stoxx 600 -0.2%) despite a distinct lack of news flow in the EU morning, and as Chinese property woes weighed on APAC markets, but with earnings seasons picking up globally. US equity futures are also softer with modest and broad-based losses ranging from 0.2-0.3%. Back to Europe, the Netherland’s AEX (+0.3%) outperforms as Unilever (+3.3%) also lifts the Personal & Household Goods sector (current outperformer) following its earnings, whereby underlying sales growth of +2.5%, as +4.1% price growth offset a -1.5% decline in volumes, whilst the group noted: "Cost inflation remains at strongly elevated levels, and this will continue into next year". The AEX is also lifted by Randstad (+4.5%) post earnings after underlying EBITDA topped forecasts. Sectors in Europe are mixed with a slight defensive bias. On the downside, there is clear underperformance in Basic Resources as base metals pull back, whilst Oil & Gas names similarly make their way down the ranks. In terms of individual movers. ABB (-5%) resides at the foot of the SMI (+0.2%) as the group sees revenue growth hampered by supply constraints. Nonetheless, flows into Food & Beverages supports heavy-weight Nestle (+1.0%) which in turn supports the Swiss index. Other earnings-related movers include Barclays (-0.4%), SAP (+1.5%), Carrefour (+1.5%), Nordea (-1.8%), and Swedbank (+2.7%). Top European News Volvo Warns More Chip Woes Ahead Will Curtail Truck Production Hermes Advances After Dispelling Worries on China Demand Stagflation Risk Still Means Quick Rate Hikes for Czech Banker Weidmann Exit Could Pave Way for Bundesbank’s First Female Chief In FX, the Dollar has regained some composure across the board amidst a downturn in broad risk sentiment, but also further retracement in US Treasuries from bull-flattening to bear-steepening in wake of an abject 20 year auction that hardly bodes well for the announcement of next week’s 2, 5 and 7 year issuance, or Usd 19 bn 5 year TIPS supply due later today. In index terms, a firmer base and platform around 94.500 appears to be forming between 93.494-701 parameters ahead of initial claims, the Philly Fed and more housing data as the focus switches to existing home sales, while latest Fed speak comes via Daly and Waller. However, the DXY and Greenback in general may encounter technical resistance as the former eyes upside chart levels at 93.884 (23.6% Fib of September’s move) and 93.917 (21 DMA), while a major basket component is also looking in better shape than it has been of late as the Yen reclaims more lost ground from Wednesday’s near 4 year lows to retest 114.00 in the run up to Japanese CPI tomorrow. NZD/AUD/NOK - No real surprise to see the high beta Antipodeans bear the brunt of their US rival’s revival and the Kiwi unwind some of its post-NZ CPI outperformance irrespective of the nation’s FTA accord in principle with the UK, while the Aussie has also taken a deterioration in NAB quarterly business business confidence into consideration. Nzd/Usd is back below 0.7200 and Aud/Usd has retreated through 0.7500 after stalling just shy of 0.7550 before comments from RBA Governor Lowe and the flash PMIs. Elsewhere, the Norwegian Crown has largely shrugged off the latest Norges Bank lending survey showing steady demand for credit from households and non-financial institutions, but seems somewhat aggrieved by the pullback in Brent from just above Usd 86/brl to under Usd 85 at one stage given that Eur/Nok is hovering closer to the top of a 9.7325-9.6625 range. EUR/CHF/GBP/CAD - All softer against their US counterpart, albeit to varying degrees as the Euro retains a relatively secure grip around 1.1650, the Franc straddles 0.9200, Pound pivots 1.3800 and Loonie tries to contain declines into 1.2350 having reversed from yesterday’s post-Canadian CPI peaks alongside WTI, with the spotlight turning towards retail sales on Friday after a passing glance at new housing prices. SEK/EM - Some traction for the Swedish Krona in a tight band mostly sub-10.0000 vs the Euro from a fall in the nsa jobless rate, but the Turkish Lira seems jittery following a drop in consumer confidence and pre-CBRT as another 100 bp rate cut is widely expected, and the SA Rand is on a weaker footing ahead of a speech by the Energy Minister along with Eskom’s CEO. Meanwhile, the Cnh and Cnh have lost a bit more momentum against the backdrop of ongoing stress in China’s property market, and regardless of calls from the Commerce Ministry for the US and China to work together to create conditions for the implementation of the Phase One trade deal, or fees on interbank transactions relating to derivatives for SMEs being halved. In commodities, WTI and Brent Dec futures have gradually drifted from the overnight session peaks of USD 83.96/bbl and USD 86.10/bbl respectively. The downturn in prices seems to have initially been a function of risk sentiment, with APAC markets posting losses and Europe also opening on the back foot. At the time of writing, the benchmark resides around under USD 83/bbl for the former and sub-USD 85/bbl for the latter. Participants at this point are on the lookout for state interventions in a bid to keep prices from running. Over in China, it’s worth keeping an eye on the COVID situation – with China's Beijing Daily stating "citizens and friends are not required to leave the country, do not gather, do not travel or travel to overseas and domestic medium- and high-risk areas", thus translating to lower activity. That being said, yesterday’s commentary from the Saudi Energy Minister indicated how adamant OPEC is to further open the taps. UBS sees Brent at USD 90/bbl in December and March, before levelling off to USD 85/bbl for the remainder of 2022 vs prev. USD 80/bbl across all timelines. Elsewhere, spot gold and silver are relatively flat around USD 1,785 and USD 22.25 with nothing new nor interesting to report thus far, and with the precious metals moving in tandem with the Buck. Base metals meanwhile are softer across the board as global market risk remains cautious, with LME copper trading on either side of USD 10k/t. US Event Calendar 8:30am: Oct. Continuing Claims, est. 2.55m, prior 2.59m 8:30am: Oct. Initial Jobless Claims, est. 297,000, prior 293,000 8:30am: Oct. Philadelphia Fed Business Outl, est. 25.0, prior 30.7 9:45am: Oct. Langer Consumer Comfort, prior 51.2 10am: Sept. Existing Home Sales MoM, est. 3.6%, prior -2.0% 10am: Sept. Leading Index, est. 0.4%, prior 0.9% 10am: Sept. Home Resales with Condos, est. 6.09m, prior 5.88m DB's Jim Reid concludes the overnight wrap I watched the first of the new series of Succession last night. I like this program as it makes me think I’ve got a totally normal and non-dysfunctional family. It’s a good benchmark to have. There are few dysfunctional worries in equities at the moment as even with the pandemic moving back onto investors’ radars, the resurgence in risk appetite showed no sign of diminishing yesterday, with the S&P 500 (+0.37%) closing just a whisker below early September’s record high. It’s an impressive turnaround from where the narrative was just a few weeks ago, when the index had fallen by over -5% from its peak as concerns from Evergrande to a debt ceiling crunch set the agenda. But the removal of both risks from the immediate horizon along with another round of positive earnings reports have swept away those anxieties. And this has come even as investors have become increasingly sceptical about the transitory inflation narrative, as well as fresh signs that Covid-19 might be a serious issue once again this winter. Starting with the good news, US equities led the way yesterday as a number of global indices closed in on their all-time highs. As mentioned the S&P 500 rallied to close just -0.02% beneath its record, which came as part of a broad-based advance that saw over 75% of the index move higher. Elsewhere, the Dow Jones (+0.43%) also closed just below its all-time high back in August. After the close, Tesla fell short of revenue estimates but beat on earnings, despite materials shortages and port backlogs that have prevented production from reaching full capacity, a common refrain by now. Overall 17 out of 23 S&P 500 companies beat expectations yesterday, meaning that the US Q3 season beat tally is now 67 out of 80. Meanwhile in Europe, equities similarly saw advances across the board, with the STOXX 600 (+0.32%) hitting its highest level in over a month, as it moved to just 1.2% beneath its record back in August. For sovereign bonds it was a more mixed picture, with 10yr Treasury yields moving higher again as concerns about inflation continued to mount. By the close of trade, the 10yr yield had risen +2.0bps to 1.57%, which was driven by a +4.6bps increase in inflation breakevens to 2.60%, their highest level since 2012. That came as oil prices hit fresh multi-year highs after the US EIA reported that crude oil inventories were down -431k barrels, and gasoline inventories were down -5.37m barrels, which puts the level of gasoline inventories at their lowest since November 2019. That saw both WTI (+1.10%) and Brent crude (+0.87%) reverse their earlier losses, with WTI closing at a post-2014 high of $83.87/bbl, whilst Brent hit a post-2018 high of $85.82/bbl. Yields on 2yr Treasuries fell -1.0bps however, after Fed Vice Chair Quarles and President Mester joined Governor Waller in pushing back against the more aggressive path of Fed rate hikes that has recently been priced in. Even so however, money markets are still implying around 1.75 hikes in 2022, about one more hike than was priced a month ago. Separately in Europe, sovereign bonds posted a much stronger performance, with yields on 10yr bunds (-2.0bps), OATs (-2.6bps) and BTPs (-3.4bps) all moving lower. Overnight in Asia stocks are trading higher this morning with the Shanghai Composite (+0.46%), CSI (+0.35%) and KOSPI (+0.23%) all advancing, whilst the Hang Seng (-0.20%) and the Nikkei (-0.45%) have been dragged lower by healthcare and IT respectively. Meanwhile Evergrande Group (-12.60%) fell sharply in Hong Kong after news that it ended talks on the sale of a majority stake in its property services division to Hopson Development. And we’ve also seen a second day of sharp moves lower in Chinese coal futures (-11.0%) as the government is mulling measures to curb speculation. And there have also been a number of fresh Covid cases in China, with 21 new cases reported yesterday, as the city of Lanzhou moved to shut down schools in response. Elsewhere in Asia, with just 10 days now until Japan’s general election, a poll by Kyodo News found that the ruling Liberal Democratic Party would likely maintain its parliamentary majority. Futures markets are indicating a slow start for markets in the US and Europe, with those on the S&P 500 (-0.09%) and the DAX (-0.05%) both pointing lower. As we’ve been mentioning this week, the Covid-19 pandemic is increasingly returning onto the market radar, with the number of global cases having begun to tick up again. This has been reflected in a number of countries tightening up restrictions, and yesterday saw Russian President Putin approve a government proposal that October 31 to November 7 would be “non-working days”. In the Czech Republic, it was announced that mask-wearing would be compulsory in all indoor spaces from next week, and New York City moved to mandate all municipal workers to get vaccinated, with no alternative negative test result option now available. In Singapore, it was announced that virus restrictions would be extended for another month, which includes a limit on outdoor gatherings to 2 people and a default to work from home. Finally in the UK, the weekly average of cases has risen above 45k per day, up from just under 30k in mid-September. There is lots of talk about the need to put in place some additional restrictions but it feels we’re a fair way from that in terms of government-mandated ones. From central banks, it was announced yesterday that Bundesbank president Weidmann would be stepping down on December 31, leaving his position after just over a decade. He said that he was leaving for personal reasons, and in his letter to the Bundesbank staff, said that “it will be crucial not to look one-sidedly at deflationary risks, but not to lose sight of prospective inflationary dangers either.” It’ll be up to the next government to decide on the new appointment. Staying on Europe, our economists have just released an update to their GDP forecasts, with downgrades to their near-term expectations as supply shortages for goods and energy have created headwinds for the recovery. They now see 2021 growth at +4.9% (down -0.1pp from their previous forecast), whilst 2022 has been downgraded to 4.0% (-0.5pp). Alongside that, they’ve also included the latest oil and gas price movements into their inflation forecasts, and now project Euro Area 2022 HICP at 2.3%, although they don’t see this above-target inflation persisting, with their 2023 HICP forecast remaining unchanged at 1.5%. You can read the full note here. Speaking of inflation, we had a couple of inflation releases yesterday, including the UK’s CPI data for September, which came in slightly beneath expectations at 3.1% (vs. 3.2% expected), whilst core CPI also fell to 2.9% vs. 3.0% expected). As we discussed earlier this week though, there was some downward pressure from base effects, since in September 2020 we had a recovery in restaurant and cafe prices after the government’s Eat Out to Help Out scheme in August ended, and that bounce back has now dropped out of the annual comparisons. UK inflation will rise a fair amount in the months ahead. Otherwise, we also had the CPI release from Canada for September, which rose to 4.4% (vs. 4.3% expected), which is its highest reading since February 2003. Finally, bitcoin hit an all-time high, with the cryptocurrency up +2.92% to close at a record $65,996, which was slightly down from its intraday peak of $66,976. Bitcoin has surged over recent weeks, and as it stands it’s up +49.3% so far this month at time of writing, which would mark its strongest monthly performance so far this year. This latest move has occurred along with the first trading of options on Bitcoin-linked ETFs, which the US first listed the day prior. To the day ahead now, and data releases from the US include the weekly initial jobless claims, existing home sales for September, the Conference Board’s leading index for September, and the Philadelphia Fed’s business outlook for October. Central bank speakers will include the Fed’s Waller and the ECB’s Visco, while the Central Bank of Turkey will be making its latest monetary policy decision. Otherwise, earnings releases include Intel, Danaher, AT&T and Union Pacific. Tyler Durden Thu, 10/21/2021 - 08:20.....»»

Category: blogSource: zerohedgeOct 21st, 2021

Shopify (SHOP) Outpaces Stock Market Gains: What You Should Know

Shopify (SHOP) closed at $1,485.74 in the latest trading session, marking a +1.41% move from the prior day. Shopify (SHOP) closed the most recent trading day at $1,485.74, moving +1.41% from the previous trading session. This change outpaced the S&P 500's 0.74% gain on the day.Heading into today, shares of the cloud-based commerce company had gained 2.13% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and the S&P 500's gain of 1.34% in that time.Investors will be hoping for strength from SHOP as it approaches its next earnings release, which is expected to be October 28, 2021. The company is expected to report EPS of $1.28, up 13.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 49.26% from the year-ago period.SHOP's full-year Zacks Consensus Estimates are calling for earnings of $6.86 per share and revenue of $4.62 billion. These results would represent year-over-year changes of +72.36% and +57.65%, respectively.Investors should also note any recent changes to analyst estimates for SHOP. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.82% higher. SHOP is currently sporting a Zacks Rank of #3 (Hold).Looking at its valuation, SHOP is holding a Forward P/E ratio of 213.72. Its industry sports an average Forward P/E of 28.07, so we one might conclude that SHOP is trading at a premium comparatively.Meanwhile, SHOP's PEG ratio is currently 7.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SHOP's industry had an average PEG ratio of 4.32 as of yesterday's close.The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.You can find more information on all of these metrics, and much more, on Zacks.com. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shopify Inc. (SHOP): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksOct 20th, 2021

Carl Icahn: It’s Too Hard To Predict Short Term Market Moves

Following is the unofficial transcript from a CNBC exclusive interview with Icahn Enterprises Chairman Carl Icahn on CNBC’s “Fast Money Halftime Report” (M-F, 12PM-1PM ET) today, Monday, October 18th in honor of the 10th anniversary of the program. Following is a link to video on CNBC.com: Q3 2021 hedge fund letters, conferences and more Carl […] Following is the unofficial transcript from a CNBC exclusive interview with Icahn Enterprises Chairman Carl Icahn on CNBC’s “Fast Money Halftime Report” (M-F, 12PM-1PM ET) today, Monday, October 18th in honor of the 10th anniversary of the program. Following is a link to video on CNBC.com: if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Icahn eBook! Get our entire 10-part series on Carl Icahn and other famous investors in PDF for free! Save it to your desktop, read it on your tablet or print it! Sign up below. NO SPAM EVER (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Carl Icahn: It’s Too Hard To Predict Short Term Market Moves SCOTT WAPNER: Let’s welcome in our first headliner of the week, Carl Icahn. He is the Chairman of Icahn Enterprises. Carl, it's good to have you here. I think you were with us on one of our very first shows. It is good to have you back to help mark our 10th year. Welcome. CARL ICAHN: Thanks for having me and I, I think I was in a number of your shows over those 10 years and I'm glad you've been so successful. WAPNER: No I appreciate it very much and it is good to have you. I do want you're still in the news, as always, and I do want to talk about your latest activist play in just a moment. I want to start though where I left off with my investment committee and that is talking about the market because when you were with us last on television, which was a year ago in October of 2020, you were pretty bearish and I spoke to you again on the phone in January of this year and you told me that you were quote, “pretty well hedged.” Now I'm wondering how the market looks to you today whether you're still as hedged or if you've covered some of the short positions that you've had in the overall market. ICAHN: Well, you know, what I would say to you is that predicting the short term, the short term market is almost, I made it almost the cardinal rule to not try to predict short or medium term and it served me well, at least served me well in 2021. I made the mistake of straying from that rule in 2020, paid the price for it, and therefore I'm not in any way, I’ve come to the conclusion, it’s almost like in the song Some Enchanted Evening and in it, he’s saying, “Who can explain it, who can tell you why. Fools give you reasons, wise men never try.” And I’ve learned that a few times in my life and learning it again, talking about the market on a short term or even medium-term basis, you cannot do. And activism is the best paradigm there is in the market. I've learned to believe that maybe some quant funds can figure out a way to predict the market but the best way to invest, by far, is, is activism and there’s tremendous barriers of interest to the activism today. I think in a way we’re almost the last activists because it's very hard to break into that business because number one, most of these hedge funds that want to be in it don't have permanent capital and without permanent capital, sometimes you have to go into this activism and you have to wait 2, 3, 4 years as we've done in many cases and, you know, if you have money in a hedge fund or an investor in a hedge fund, they’re not going to sit for that so. The other reason we can do it, over the years Scott, is that we have a brand name, a true brand name sort of like Coca Cola. So, when we cover one, the targets or even the advisors who target, know we're never gonna go away if we, if we don't get at least board seats the ability not to micromanage but to give macro advice and that served— WAPNER: You have the luxury obviously of doing that for the reasons that you said and I and I always listen to you very carefully. I hear somebody who's choosing their words carefully here about what you want to say about the market. But you've been pretty clear with us in the past that you thought the market was vulnerable, you thought it was overvalued, you said you were pretty hedged. Does the market look better to you today or not? ICAHN: You know something, and I'm not being facetious here, I can't answer that question. I will tell you this. I will tell you this that as far as I'm concerned, the market, one day, and I believe one day in the long run and I don't know how long it is and I think you have to be a fool to try to tell you how long it is in this kind of a market, in the long run, we're certainly going to hit the wall and people may say to me, well, anybody can say that. No, but I really think there will be a crisis the way we're going, the way we're printing money, the way we’re going into inflation, I think if you look around you, you see this inflation all around you and I don't know how you deal with that in the long term. But if you’re asking me even what's going to happen in the next year or next two years or three years, I think it is foolish to try to answer that question. I honestly think that, you know, there's money is working to some extent. They keep printing our money, the money goes out. I up to just recently haven't seen inflation. Now that you see inflation, then you have to worry. The IEP, there’s activism and activism works extremely well. In a market like this, it works very well. In other markets, it sometimes doesn't work as well. But I mean look, the proof of the pudding and I did some numbers, actually talked to you on this program, and if you invested, if you invested in IEP in the year 2000 when we started to do this activism and for real, the total return is sort of what's almost an incredible 1,945% on your money so if you, if you put in money in 2000, just left it in there and reinvested your dividends, you made 1,945% on your money. Now the S&P during that period if you did the same thing, you made only 358%. In the Dow, you made 409%. In the Russell, 499%. Even in Berkshire Hathaway, you only made 655%. We made you 1,945%. How do you even stumbling along that's given us the ability to give dividends since 2005 and the dividend has crept up. We’ve never missed a dividend. We've never decreased the dividend, and that's all because activism and this dividend we give today is up to $8 a share or $8 a unit and $8 a unit brings you to about a 14% return. We're able to do it through the activists, of not predicting the market— WAPNER: Sure. ICAHN: If they ask you to predict the market, you know, I believe in that song I just told you— WAPNER: Well I look at your portfolio at least what I believe to be in your portfolio, Carl, and it feels like what's happening and you mentioned inflation, what's happening in the energy patch, whether it's natural gas or oil or any number of other things, it feels like this is your moment. Do you feel like it is I mean, I have that 18% of your portfolio or thereabouts is in energy Occidental, Cheniere, CVR, Delek, SandRidge, some other names as well, is this your moment because of what we've been witnessing with with— ICAHN: I think it’s a moment because of the activism is going to become more and more prevalent that because we have companies with many exceptions are badly run. And that's the proof of the pudding, we go in and we don’t try to micromanage them and they are very good CEOs, by the way, companies that we go into have very good CEOs at times. It’s almost an exception when they’re really terrible. So, we don't have to change CEOs. We did it in LNG that’s in Cheniere, worked out great for us by changing the CEO. And actually, but okay, the company that we're now has a terrible CEO, the we're talking about now which is Southwest Energy, but we’ve been able to go in to every one of these companies and work with the board and the results have been sort of phenomenal. I mean, if you look at some of the companies, even in OXY where we went in and we said we don't agree with the CEO’s M&A but even there, we were responsible for getting them. I don't think anybody there will deny it, we fought and fought it came out at 1. I think they’re 15 today or 14 I haven't looked at them recently, we own a lot of them so what I’m just saying is, for instance at CVR, we’re involved with the company who's got a very good CEO trying to get more and more into renewable energy because I really feel there I could talk to you about that. If you really study that, you know, we’ve studied it at OXY, we studied it here, you can’t keep this country, you can't keep this world going the way it's going. You really can't, you know, I’ve talked to some of the brightest guys around and it’s foolish to say, and you know that was one of my disagreements with Trump in a way, you can't keep it with the carbon that you're emitting and right now you have too much carbon there already. So you need to do renewable fuels and the government instead of doing some of the, some of the plans they’re doing, must in one way or another subsidize renewable fuels. And then, so we’re uniquely involved in that at CVI where, you know, we’re in the middle of the country, CVI is in the middle of the country, we put in about, you know CVI is doing alright today but we put in close to $200 million already in it because the refinery you need the refinery really we think because it creates hydrogen to work in making renewable fuels so it sort of works together. WAPNER: My, my point. My point Carl is though— ICAHN: I don't want to dwell on it but I’m just giving you an example, right. WAPNER: A lot of these stocks have had huge gains of late. Energy is the best performing sector of the year and that's why I say, I'm wondering whether this is your moment or not and you see these stocks continue to go up. Are you taking any profits in these names? Do you still own all of the names that I mentioned, the Cheniere, the CVR, OXY, SandRidge, Delek? ICAHN: I do own, I do own LNG, haven't really sold very much of it. I think it's a great company. I think there's a great need for LNG and now that's coming to fruition. Cheniere is already actually made all the trades that they need to produce it and they are going to do contracts for others trades. So, I do have LNG. I haven't really sold, I actually sold a few of the warrants but not the stock. I do have a hedge against that OXY though in the XLE, XLP, that kind of thing. So I do have this hedge somewhat. The money we really make, it's just going into these different areas. For instance, for the first six months because we’re not really too hedged, we’re hedged but not too hedged, if you look across stocks as I told you or maybe didn't, we, we were up over a billion dollars that asset value was up over a billion in the first six months and we're actually, I'm happy to say, we're coming out with earnings at the end of the month, but I can say that we're sort of going at the same pace for the third quarter. So, we're very happy with the results. WAPNER: I’m sure. ICAHN: But you can’t pinpoint it on one thing. You know we have a team, Brett has a limited team of really very, very talented analysts that are working with him that have experienced that, we're all into the same this thing that my son, Brett Icahn, did before and we're in companies like, like Dallas and I think you wait for these things to produce and we're in the Southwest Energy and gas— WAPNER: Let me talk about Southwest if I could because that's the news of the moment and you mentioned that you're not happy with the CEO. The bottom line is that you don't like the deal that they want to do. You think it's too high of a price, you've announced a proxy fight, a plan to nominate a slate, right, and the company says they'll see when you, when you do it, they'll see it and then, then they'll respond. When are you going to nominate the slate and what do you think your chances are? ICAHN: Alright so it’s a great question actually. In Southwest in particular, it's the perfect example, the quintessential example of what I, remember what I talked to you and I'm gonna do it real quick because I know you want to keep moving, you know, in many of our companies, you have an anti-Darwinian principle. We, this guy gets into the company, he works his way up, he's not too bright. He knows how to not be a threat to the guy above him. This is the perfect example of John Hester who is the CEO of this company but there's a certain arrogance in this company because any utility you feel that you have the protection of the regulatory agency and that's sort of anti-intuitive and I think we can approve it because the regulatory agencies want to protect their ratepayers. Here's this guy Hester who's out there joining golf clubs. I mean he has the arrogance to join golf clubs to expense that against the rate base meaning that he wants to, you know, give him an allowance to make a certain amount of return on equity. And he— WAPNER: I mean if you want to get mad at CEOs for being members of golf clubs, we're not going to have any CEOs left in America. ICAHN: Well yeah but at least you don't charge, you don’t charge the customer for being on the. It’s one thing to charge your shareholders if your shareholders want to allow it, they will allow it. But this guy is charging not only not only his shareholders to live at this high level, but he's also charging the guys that are buying the gas from them. He's charging his ratepayers, he's charging. That’s what the regular, I’m not saying it, the regulatory agencies are saying it. This guy has the arrogance, the nerve to go in and charge, he actually charged for a manicure if you can believe it. He charged for manicures. WAPNER: I find that hard to believe. I find that hard to believe. ICAHN: It's written by the regulatory agencies that want to disallow these expenses. This guy and then he goes out and he decides he's just gonna keep acquiring companies, really utilities are getting out of other companies because they just want to stick to being a utility and that's what I think the regulatory agencies would prefer. This guy just bought a company, his company is selling around and only one times, one times rate base because of, because his bad performance. Now, the guy is going out and paying two times that for a pipeline. He's overpaying by 200, 300 million that Buffett was willing to pay so he’s overpaying and he’s doing it in my belief because the more stock he can put out there, the more protection he is going to issue stock to his buddies and that is what he is doing and he’s done it continuously, he’s done a terrible job in running this utility. WAPNER: Well we— ICAHN: And by the way, he’s made six and a half million dollars a year for himself for doing an awful job and there is no accountability. Now these are the things that we've done for, you know, 30 years maybe gone after this companies and today, we find that a lot of companies welcome us in. I mean it might sound ironic but we have good board members. We come in and I mean with this guy Hester, I tried to call him and tell him, look don’t do this. You try to call him, he wouldn't answer the phone and his assistant kept saying he’s out to lunch. And then I said after she kept telling me that, I said she’s certainly right, the guy is out to lunch. And now, we finally did talk to him and then he, the arrogance of the guy, he told me, okay, we're not going to talk about, you know, he did his deal already, about what should be done, and we said okay, and with all the guys we’ve gone after, with all the CEOs for 30 years, nobody ever bold faced lied to me, you know, not that I care that much but he's on the phone saying, we will do nothing public until Wednesday. I said, okay, great. The next day, two days after he put a poison pill out. I mean, you know, this guy is completely off the wall as far as I'm concerned and I really think I didn't have a chance even though he thinks he’s going to have the regulatory agencies protect him and he thinks maybe by the way, the index funds he thinks will protect him but I think that day is over. I really think that the index funds have come around to thinking, you know, we should let our investors decide on the— WAPNER: I was gonna, I was gonna ask you about that because if you look what happened with the index funds I thought of you. When you look what happened with the index funds in Engine No. 1 at Exxon, I thought directly of you because you've been the most critical of index funds whether it's Vanguard, Blackrock or whoever for always voting with management and that was a stake in the ground that says it's not maybe it's not going to be that way anymore so maybe you have— ICAHN: I honestly believe and I know I was on your show once with Larry Fink. I honestly think they would like to do something about it and I'm not quite sure exactly, you know, the day is coming because we need more productivity in this country. We can't keep going, this inflation is taking hold and it’s taking hold in a bad way. We need and the only way we're gonna get productivity is get the right guys to run these companies or at least, even though the right guys in many cases, I want to make it clear, in many of the countries we’re in, the right guys are running the company. It's just their crown jewels there that should be burnished, it should be spun off and taken out. I mean look I’ll give you an example, we’re in eBay, PayPal, took us three years to get it to finally take PayPal out and look how great it did for the shareholders. Look, if you go back, if you go back into the 90s, Reynolds Tobacco I got them to finally spin off Nabisco and everybody made ten times their money. I mean, so if you look back, that is what has to be done and I think they’re finally waking up. Southwest is going to be a tough case because here you do have a terrible manager. You do. In this country, a lot of very good managers— This is a bad one. WAPNER: We will continue to follow it. I want to get to two other topics before I before I let you run. Bitcoin as we talk about markets again. Are you in Bitcoin or would you buy— ICAHN: No, as they say, I’m purely do, we do a lot, a lot of research that we find companies that we could understand and I can't understand it. I admit. We can and not just me but we got a lot of my guys working at Icahn company and it's a tough, it's tough to get a job there. They've put a great team together and we just don't understand it so and I’m not saying it’s bad or good. I’m just saying just we don't understand it. We’re not going to invest in something we don’t get. And I'm not telling you, we'll go double or triple I don't know but well I have thoughts about it but I'm not, look, you don’t need me talking about Bitcoin on this show. Obviously we've studied it a lot. But we’re not in that. WAPNER: Do you think it has intrinsic value? Do you think it's a store of value? I would like to hear a quick thought of yours on it. ICAHN: I, I think the jury's out on it. The jury is really out on whether it is or whether it's not. And I think, if you can tell me what the economy is going to do, how inflationary is going to get, yeah look, if inflation gets rampant, I guess it does have value but will inflation get rampant or will the government come in as they did in China and said stop the thing pretty much so there's so many, there's so many variables in it that is a very difficult thing to invest in, from, from my point of view, when we have such a, what I consider to be such a great paradigm that we use with this activism. WAPNER: As we mark, you know, we're obviously marking 10 years this week and I was looking back to try and think of what your best investment over the last 10 years was. I don't know if it was Apple or Netflix and we're counting down to another Apple event in about 20 minutes or so, was that the best investment that you ever made was Apple I think you made like $2 billion in it or Netflix. ICAHN: It was. If you look back at the money we made on it, we made a hell of a lot of money on it but sold it. It's always gonna be the two of us we sell too soon because, you know, we did it when it really sort of it got something to be done. We tried to get it done and then we get out so obviously there was an article I could be worth 40 billion more if I had kept Apple and Netflix but I don't really care because I never would have kept it and, you know, we have so our customers have made a fortune in Apple because I think partially, we did something real good there. And I really think we were very instrumental and I don't think Tim Cook would deny it of getting them to do the buybacks in the big way they did it and so we helped there. Yeah, we made a lot of money in Apple. We made $1.8 billion in it, I, you know, it’s public, but all the shareholders from the time I got in to the time I got out, made 234 billion so we certainly serve a purpose. And we got some very good investments. I mean, like like, like one that we got into was that we didn't put much money into is Forest Labs where we actually made more profit. We went in there. It was a great company with a lot of hidden jewels in the pipeline and we actually made close to 2 billion in that one. So there are many to look back on, if I look back on my list and then we made a great deal of money in Netflix. WAPNER: Yeah, I know you did. Well, your list is long. ICAHN: We made a couple million there. Look, we made a great deal of money doing this paradigm. When I stray from it, I think when I stray from it, I’m gambling. So you asked me about Bitcoin, then I’m going to gamble. If I’m going to gamble, I might as well go to Vegas right. So I’m not going to, I learned that discipline. WAPNER: Alright, we’re going to leave it there. Carl, thank you so much for coming on today. I appreciate it. ICAHN: Hey, thanks for having me. Good luck again, good luck. I hope you have another great 10 years on this show. Updated on Oct 18, 2021, 4:07 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkOct 19th, 2021

Futures Slide On Renewed China Slowdown, Rate Hike Fears

Futures Slide On Renewed China Slowdown, Rate Hike Fears US equity futures and world shares drifted lower following poor Chinese macro data which saw the country's GDP slide to a weaker than expected 4.9%, and as surging energy prices and inflation reinforced bets that central banks will be forced to react to rising inflation and hike rates faster than expected. Calls by China’s President Xi Jinping on Friday to make progress on a long-awaited property tax to help reduce wealth gaps also soured the mood. With WTI crude rising to a seven-year high, and Brent back over $85, investors remain concerned that living costs will be driven higher. The economic recovery also remains uneven with China’s gross domestic product slowing more than expected in the third quarter, increasing aversion to riskier assets. The dollar rose against all of its Group-of-10 peers as concerns about an acceleration in inflation damped risk appetite, while bircoin traded above $61K and just shy of an all time high ahead of the launch of the Proshares Bitcoin ETF on Tuesday. An MSCI gauge of global stocks was down 0.1% by 0808 GMT as losses in Asia and a weak open in Europe erased part of the gains seen last week on a strong start to the earnings season. U.S. stock futures were also lower with S&P 500 e-minis last down 0.2%, while Dow and Nasdaq e-minis were both down 0.3%. China’s gross domestic product grew 4.9% in the July-September quarter from a year earlier, its weakest pace since the third quarter of 2020. The world’s second-largest economy is grappling with power shortages, supply bottlenecks, sporadic COVID-19 outbreaks and debt problems in its property sector. Additionally, industrial output and fixed investment also missed expectations, while retail sales beat modestly (more here). Not even the latest attempt by China to ease Evergrande contagion fears was enough to offset worries about China's economy: on Sunday, PBOC Governor Yi Gang said authorities can contain risks posed to the Chinese economy and financial system from the struggles of China Evergrande Group. Because of course he will say that. Oil prices extended a recent rally amid a global energy shortage with U.S. crude touching a seven-year high while Brent was set to surpass its 2018 highs just above $86, as Russia kept a tight grip on Europe’s energy market, opting against sending more natural gas to the continent even after President Vladimir Putin said he was prepared to boost supplies. “The lingering energy crisis, while benefiting miners and other oil & gas related stocks, is otherwise weighing on the overall sentiment,” said ActivTrades’ Pierre Veyret. Investors will stay focused on macro news this week with major Chinese and U.S. releases as well as new monetary policy talks from Jerome Powell, he said. Investors continue to grapple with worries that energy shortages and supply-chain disruptions will drive up living costs in most economies. At the same time, the recovery remains patchy and central bankers are inching closer to paring back stimulus. U.S. consumer sentiment fell unexpectedly in early October, but retail sales advanced. “We are starting to see some cracks in the transitory narrative that we’ve been hearing for quite some time,” Meera Pandit, global market strategist at J.P. Morgan Asset Management, said on Bloomberg Radio. “Rates will continue to ground higher from where we are. But I don’t think from a Fed perspective, when you think about the short end of the curve, that they are going to move much earlier than 2023. They are going to be a little bit more patient than the market expects right now.” And then there were rates: the global bond selloff gathered pace, with U.K. yields surging after Bank of England Governor Andrew Bailey warned on the need to respond to price pressures. Rate-hike bets have also picked up in the U.S., Australia and New Zealand, where inflation accelerated to the fastest pace in 10 years. Ten-year Treasury yields extended a climb , rising as high as 1.62%. Mohammed El-Erian, the chief economic adviser at Allianz SE and a Bloomberg columnist, said investors should prepare for increased market volatility if the Federal Reserve pulls back on stimulus measures set in motion by the Covid-19 pandemic. On the other side of the argument, Goldman's flow trading desk said odds of a November meltup are rising as a result of a relentless appetite for stocks and an upcoming surge in stock buybacks. In any case, Virgin Galactic Holdings Inc. shares fell 3% in U.S. premarket, extending losses from Friday that came after the firm pushed back the start of commercial flights further into next year after rescheduling a test flight. Here are some of the other notable U.S. pre-movers today: Baidu (BIDU US) shares erased earlier losses and climbed as much as 4.3% in Hong Kong, as China debates rules to make hundreds of millions of articles on Tencent’s WeChat messaging app available via search engines like Baidu’s. Crypto-related stocks in action as Bitcoin leaps as much as 5.3% and is just shy of a fresh six- month high. Riot Blockchain (RIOT US), Marathon Digital (MARA US) and Coinbase (COIN US) are all up Tesla (TSLA US) shares rise 0.2% in premarket trading Monday, poised for 50% rally from a March 8 low, ahead of its third-quarter results on Wednesday Dynavax (DVAX US) shares rise as much as 10% in U.S. pretrading hours after the biopharmaceutical company announced that Valneva reported the trial of inactivated, adjuvanted Covid-19 vaccine candidate VLA2001 met its co-primary endpoints Disney (DIS US) drops in premarket trading after Barclays downgrades to equal-weight as the company faces a “tough” task to get to its long-term streaming subscription guidance NetApp (NTAP US) slips 2.2% in premarket trading after Goldman Sachs analyst Rod Hall cut the recommendation on NetApp Inc. to sell from neutral European stocks traded on the back foot from the open, with the benchmark Stoxx 600 Index down 0.4%, led by losses in retail stocks. The Euro Stoxx 50 dropped as much as 0.9%, FTSE 100 outperforms slightly. Mining stocks were among Europe's only gainers thanks to the ongoing metals rally: the Stoxx Europe 600 basic resources sub-index climbs for a third day for the first time since early September as the record rally of base metals is extended. The gauge rose 0.6%, outperforming main benchmark which trades 0.4% lower. Notable movers: Glencore +1.2%; BHP +1%; Norsk Hydro +2.5%; ArcelorMittal +0.9% Rio Tinto +0.3%. Offsetting these gains, European luxury stocks slipped after a Chinese Communist Party journal published a speech of President Xi Jinping that includes advancing legislation on property taxes. Here are some of the biggest European movers today: Playtech shares rise as much as 59% in London after the British gambling software developer agreed to be bought by Australia’s Aristocrat for $3.7 billion. Valneva SE shares rise as much as 42% as its experimental Covid-19 vaccine elicited better immunity than AstraZeneca Plc’s shot in a clinical trial that will pave the way for regulatory submissions. Shares of hydraulics manufacturer Concentric rise as much as 14%, the most since April 2020, after Danske Bank upgraded the stock to buy from hold, calling the company a strong performer in a difficult market. THG shares jump as much 12%, most since May 11, after founder and CEO Matthew Moulding confirmed his intention to cancel his special share rights. The removal of the special share points to the e-commerce company’s “willingness to engage on shareholder concerns,” according to Jefferies. Rational AG shares rise as much as 6.1%, the most since Aug. 5, after the German kitchen machinery maker is upgraded to buy from hold at Berenberg, which considers the shares “inexpensive” despite stretched multiples. Atrium European Real Estate share rises as much as 7.6% to the highest since March 2020 after controlling shareholder Gazit Globe raises the offer price to EU3.63 per Atrium share from EU3.35. Earlier in the session, Asian equities fell, putting them on track to snap a three-day rally, as China’s economic growth slowed and prospects of higher bond yields weighed on some tech shares. The MSCI Asia Pacific Index fell as much as 0.4%, with tech and consumer staples shares setting the pace for declines. TSMC and Sony Group were among the biggest drags. Official data showed that China’s economy weakened in the third quarter amid tighter restrictions on the property market and China Evergrande Group’s debt crisis. For Asia stock traders, the concerns about China are adding to persistent inflation worries and energy shortages, which are sending bond yields higher. While inflation worries are “alive and well,” Asian markets will be predominantly focused on China data today, Jeffrey Halley, senior market analyst at Oanda Asia Pacific, wrote in a note. The weak data print “will lift expectations of an imminent PBOC RRR rate cut,” he added. China’s benchmark underperformed as the country explored property- and consumption tax-related changes and international funds sold shares of Kweichow Moutai Co., the country’s largest stock by market value. Tencent, Meituan and Alibaba pared losses prompted by the Chinese government saying it will introduce more regulations on the tech sector. China is considering asking media companies from Tencent Holdings Ltd. to ByteDance Ltd. to let rivals access and display their content in search results, according to people familiar with the matter. India’s Sensex index bucked the regional trend and is on track to rise for the seventh day, the longest such streak since January, helped by easy money. Japanese equities declined, paring last week’s rally, weighed down by losses in electronics makers. The Topix dipped 0.2%, following a 3.2% gain last week. The Nikkei 225 fell 0.2%, with M3 Inc. and KDDI the biggest drags. Almost 30% of respondents to a Kyodo weekend poll said they plan to vote for the ruling Liberal Democratic Party in the proportional representation section of Japan’s Oct. 31 election. U.K. rates steal the limelight amid a violent selloff that saw 2y gilt yields rise as much as 17bps to trade close to 0.75%. Weekend comments from BOE’s Bailey triggered a snap lower in short-sterling futures and bear-flattening across the gilt curve. MPC-dated OIS rates price in ~20bps of hiking by the November meeting. Bunds and Treasuries follow gitls lower, peripheral spreads widen to core with Italy underperforming. Australian stocks closed higher as miners and banks advanced. The S&P/ASX 200 index rose 0.3% to close at 7,381.10, led by miners and banks. Nickel Mines surged after a subsidiary signed a limonite ore supply agreement with PT Huayue Nickel Cobalt. Domino’s was among the worst performers, closing at its lowest since Aug. 17. In New Zealand, the S&P/NZX 50 index fell 0.1% to 12,998.51. In FX, the Bloomberg Dollar Spot Index advanced as the dollar traded higher versus all of its Group-of-10 peers Traders pulled forward rate- hike bets after BoE governor Bailey said the central bank “will have to act” on inflation. U.K. money markets now see 36 basis points of BoE rate increases in December and are pricing 15 basis points of tightening next month. Traders are also now betting the BoE’s key rate will rise to 1% by August, from 0.1% currently. The euro struggled to recover after falling below the $1.16 handle in the Asian session; money markets are betting the ECB will hike the deposit rate to -0.4% in September as expectations for global central-bank policy tightening gather pace. Resilience in the spot market and a divergence with rate differentials in the past sessions has resulted in a flatter volatility skew for the euro. Commodity-linked currencies such as the Australian dollar and the Norwegian krone underperformed after Chinese data including third-quarter growth and September factory output trailed economists’ estimates. The kiwi rose to a one-month high versus the dollar, before giving up gains, and New Zealand’s bond yields rose across the curve after 3Q annual inflation rate surged, beating estimates. The yen steadied around a three-year low as U.S. yields extended their rise in Asian trading; the Japanese currency still held up best against the dollar among G-10 currencies, after performing worst last week. In rates, treasuries were under pressure led by belly of the curve as rate-hike premium continues to increase in global interest rates. Yields, though off session highs, remain cheaper by nearly 5bp in 5-year sector; 2s5s30s fly topped at -12.5bp, cheapest since 2018; 10-year is up 2.8bp around 1.60% vs 3.4bp increase for U.K. 10-year. Belly-led losses flattened U.S. 5s30s by as much as 5.4bp to tightest since April 2020 at around 86.1bp; U.K. 5s30s curve is flatter by ~8bp after its 5-year yield rose as much as 14bp. Gilts led the move, with U.K. 2-year yield climbing as much as 16.8bp to highest since May 2019 as money markets priced in more policy tightening after Governor Andrew Bailey said the Bank of England “will have to act” on inflation. With latest moves, U.S. swaps market prices in two Fed hikes by the end of 2022. In commodities, WTI rose 1%, trading just off session highs near $83.20; Brent holds above $85. Spot gold drifts lower near $1,762/oz. Most base metals are in the green with LME lead and tin outperforming. Looking at today's calendar, we have industrial production, US September industrial production, capacity utilisation, October NAHB housing market index. Fed speakers include Quarles, Kashkari. Market Snapshot S&P 500 futures down 0.2% to 4,451.75 STOXX Europe 600 down -1.6% to 467.76 MXAP down 0.2% to 198.11 MXAPJ little changed at 650.02 Nikkei down 0.1% to 29,025.46 Topix down 0.2% to 2,019.23 Hang Seng Index up 0.3% to 25,409.75 Shanghai Composite down 0.1% to 3,568.14 Sensex up 1.0% to 61,918.22 Australia S&P/ASX 200 up 0.3% to 7,381.07 Kospi down 0.3% to 3,006.68 Brent Futures up 0.9% to $85.65/bbl Gold spot down 0.3% to $1,762.70 U.S. Dollar Index up 0.17% to 94.10 German 10Y yield rose 3.5 bps to -0.132% Euro down 0.1% to $1.1586 Brent Futures up 0.9% to $85.65/bbl Top Overnight News from Bloomberg Germany’s prospective ruling coalition is targeting about 500 billion euros ($580 billion) in spending over the coming decade to address climate change and will seek loopholes in constitutional debt rules to raise the financing The ECB is exploring raising its limit on purchases of debt issued by international bodies such as the European Union from the current cap of 10%, the Financial Times reported, citing four ECB governing council members The ECB should keep some of the flexibility embedded in its pandemic bond-buying program for post-crisis stimulus measures, Governing Council member Ignazio Visco said People’s Bank of China Governor Yi Gang said authorities can contain risks posed to the Chinese economy and financial system from the struggles of China Evergrande Group A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks traded cautiously after disappointing Chinese GDP and Industrial Production data, while inflationary concerns lingered after the recent firmer than expected US Retail Sales data, a continued rally in oil prices and with New Zealand CPI at a decade high. Nonetheless, the ASX 200 (+0.1%) bucked the trend on reopening optimism with curbs in New South Wales to be further eased after having fully vaccinated 80% of the adult population and with the Victoria state capital of Melbourne set to lift its stay-at-home orders this week. Furthermore, the gains in the index were led by outperformance in the top-weighted financials sector, as well as strength in most mining names aside from gold miners after the precious metal’s retreat from the USD 1800/oz level. Nikkei 225 (-0.3%) was subdued after a pause in the recent advances for USD/JPY and with criticism of Japan after PM Kishida sent an offering to the controversial war shrine which sparked anger from both China and South Korea. Hang Seng (-0.5%) and Shanghai Comp. (-0.4%) were subdued after Chinese Q3 GDP data missed expectations with Y/Y growth at 4.9% vs exp. 5.2% and Industrial Production for September fell short of estimates at 3.1% vs exp. 4.5%, while the beat on Retail Sales at 4.4% vs exp. 3.3% provided little consolation. There was plenty of focus on China’s property sector with PBoC Governor Yi noting authorities can contain risks posed to the Chinese economy and financial system from the struggles of Evergrande, and with its unit is said to make onshore debt payments due tomorrow. However, attention remains on October 23rd which is the end of the grace period for its first payment miss that would officially place the Co. in default and it was also reported on Friday that China Properties Group defaulted on notes worth USD 226mln. Finally, 10yr JGBs were lower amid spillover selling from T-notes which were pressured after the recent stronger than expected Retail Sales data and higher oil prices boosted the inflation outlook, with demand for JGBs is also hampered amid the absence of BoJ purchases in the market today. Top Asian News Tesla Shares Roaring Back, Set for 50% Gain From March Lows Kishida’s Offering to Japan War Shrine Angers Neighbors Baidu Jumps as China Said to Weigh More Access to WeChat Content AirAsia X Proposes Paying Creditors 0.5% of $8 Billion Owed European equities (Eurostoxx 50 -0.7%; Stoxx 600 -0.4%) have kicked the week off on the backfoot as market participants digest disappointing Chinese GDP metrics, a continued rally in energy prices and subsequent inflationary concerns which has seen markets price in more aggressive tightening paths for major global central banks. Overnight, Chinese Q3 GDP data missed expectations with Y/Y growth at 4.9% vs exp. 5.2% and Industrial Production for September fell short of estimates at 3.1% vs exp. 4.5%, while the beat on Retail Sales at 4.4% vs exp. 3.3% provided little consolation. Stateside, index futures have conformed to the downbeat tone with the ES softer to the tune of -0.3%, whilst the RTY narrowly lags with losses of 0.4%. In a note this morning, JP Morgan has flagged that investor sentiment remains that “the upcoming reporting season will be challenging, given the combination of the activity slowdown, significant supply distortions impacting volumes, and the energy price acceleration that is seen to be hurting profit margins and consumer disposable incomes”. That said, the Bank is of the view that investors are likely braced for such disappointments. In Europe, sectors are mostly lower with Retail names lagging post-Chinese GDP as Kering (accounts for 28.7% of the Stoxx 600 Retail sector) sits at the foot of the CAC with losses of 3.2%; other laggards include LVMH (-2.7%) and Hermes (-2.3%). To the upside, Banking names are firmer and benefitting from the more favourable yield environment, whilst Basic Resources and Oil & Gas names are being supported by price action in their respective underlying commodities. In terms of individual movers, THG (+7.6%) sits at the top of the Stoxx 600 after confirming that it intends to move its listing to the 'premium segment' of the LSE in 2022; as part of this, CEO & Executive Chairman Moulding will surrender his 'founders share' next year. Finally, Umicore (-4.5%) sits at the foot of the Stoxx 600 after cutting its FY21 adj. EBIT outlook. Top European News Traders Ramp Up U.K. Rate-Hike Bets on Bailey Inflation Warning Nordea Equity Research Hires Pareto Analyst for Tech Team ECB’s Visco Says Flexible Policy Should Remain Part of Toolkit Scholz Coalition Eyes $580 Billion in Spending on German Reboot In FX, the broader Dollar and index has waned off its 94.174 pre-European cash open high but remains underpinned above 94.000 by risk aversion and firmer yields, with the US 10yr cash now hovering around 1.60%. Stateside, US President Biden confirmed that the reconciliation package will likely be less than USD 3.5trln, although this was widely expected in recent weeks. Aside from that, the Greenback awaits further catalysts but until then will likely derive its impetus from the yield and risk environment. From a tech standpoint, a breach of 94.000 to the downside could see a test of the 21 DMA (93.865) – which has proven to provide some support over the last two trading sessions, with Friday and Thursday’s lows at 93.847 and 93.759 respectively. The upside meanwhile sees the YTD high at 94.563, printed on the 12th of Oct. CNH - The offshore is relatively flat on the day in a contained 6.4265-4387 range following a set of overall downbeat Chinese activity metrics. GDP growth momentum waned more than expected whilst industrial production was lower than expected, largely impacted by the electricity crisis and local COVID outbreaks during Q3. Retail sales meanwhile rebounded more than expected – albeit due to reopening effects, with inflation a concern heading forward. The Chinese National Bureau of Stats later hit the wires suggesting that major economic data are seen in reasonable ranges from Q1-Q3. The PBoC governor meanwhile downplayed the current risks of spillover from default fears. AUD, NZD, CAD - The overall cautiousness across the market has pressured high-betas. The AUD fails to glean support from the firmer base metal prices and the surge in coal prices overnight, with overall downbeat Chinese data proving to be headwinds for the antipodean. The NZD is more cushioned as inflation topped forecasts and reinforced the RBNZ’s hawkishness, whilst AUD/NZD remains capped at around 1.0500. AUD/USD fell back under its 100 DMA (0.7409) from a 0.7437 peak, whilst NZD/USD hovers around 0.7050 (vs high 0.7100), with the 100 DMA at 0.7021. The Loonie narrowly lags as a pullback in oil adds further headwinds. USD/CAD aims for a firmer footing above 1.2400 from a 1.2348 base. EUR, GBP- The single currency and Sterling are relatively flat on the day and within tight ranges of 1.1572-1.1605 and 1.3720-65 respectively. The latter was unreactive to weekend commentary from the BoE governor, sounding cautious over rising inflation but ultimately labelling it temporary, although suggesting that monetary policy may have to step in if risks materialise. From a Brexit standpoint, nothing major to report in the runup to negotiations on the Northern Ireland protocol. Across the Channel, FT sources suggested that four ECB GC members would support upping the PSPP share of APP from the current 10% - with the plan to be discussed across two meetings next month and requiring a majority from the 25 members. All-in-all, the EUR was unswayed ahead of a plethora of ECB speakers during the week and as the clock ticks down to flash PMIs on Friday. JPY, CHF - The traditional safe-havens have fallen victim to the firmer Buck, with USD/JPY extending on gains north of 114.00 as it inches closer towards 114.50 – which also matches some highs dating back to 2017. The Swiss Franc is among the laggards after USD/CHF rebounded from its 50 DMA (0.9214) as it heads back towards 0.9300, with the weekly Sight deposits also seeing W/W increases. In commodities, WTI and Brent front-month futures have drifted from best levels as the cautious risk tone weighs on prices, but nonetheless, the complex remains overall firmer with the former within a USD 82.55-83.06 range and the latter in a 84.93-85.31 intraday parameter. Fresh catalysts remain quiet for the complex, while there were some comments over the weekend from Iraq's Oil Ministry which noted that prices above USD 80/bbl are a positive indicator. Elsewhere on the supply-side, Iran is to resume nuclear negotiations on October 21, an Iranian lawmaker said Sunday, although it is unclear how far talks will go as the US and Iran affirm their stances. It is also worth noting that a fire was reported at Kuwait's Mina al-Ahmadi (346k BPD) refinery, but refining and export operations are unaffected. UK nat gas futures meanwhile are relatively flat in a tight range, although prices remain elevated on either side of GBP 2.5/Thm. Elsewhere, spot gold and silver trade sideways amid a lack of catalysts, although the firmer found some support at 1,760/oz - matching its 21 DMA. Over to base metals, LME copper remains supported around USD 10,250/t. Overnight, Shanghai zinc and Zhengzhou coal hit a record high and limit up respectively, with some citing supply constraints. US Event Calendar 9:15am: Sept. Industrial Production MoM, est. 0.2%, prior 0.4%; Capacity Utilization, est. 76.5%, prior 76.4% Manufacturing (SIC) Production, est. 0.1%, prior 0.2% 10am: Oct. NAHB Housing Market Index, est. 75, prior 76 2:15pm: Fed’s Kashkari Discusses Improving Financial Inclusion 4pm: Aug. Total Net TIC Flows, prior $126b DB's Jim Reid concludes the overnight wrap Straight to China this morning where the monthly data dump has just landed. GDP expanded in Q3 by +4.9% on a year-on-year basis, which is a touch below the +5.0% consensus expectation and a shift down from the +7.9% expansion back in Q2. That’s come as their economy has faced multiple headwinds, ranging from the property market crisis with the issues surrounding Evergrande group and other developers, an energy crisis that’s forced factories to curb output, alongside a number of Covid-19 outbreaks that have led to tight restrictions as they seek to eliminate the virus from circulating domestically. Industrial production for September also came in beneath expectations with a +3.1% year-on-year expansion (vs. +3.8% expected), though retail sales outperformed in the same month with +4.4% year-on-year growth (vs. +3.5% expected), and the jobless rate also fell back to 4.9% (vs. 5.1% expected). That data release alongside continued concerns over inflation has sent Asian markets lower this morning, with the Shanghai Composite (-0.35%), Hang Seng (-0.36%), CSI (-1.40%) KOSPI (-0.01%), and the Nikkei (-0.16%) all trading lower. Speaking of inflation, there’ve also been fresh upward moves in commodity prices overnight, with WTI up a further +1.58% this morning to follow up a run of 8 successive weekly moves higher, which takes it to another post-2014 high, whilst Brent crude is also up +1.14%. Furthermore, data overnight has shown that New Zealand’s CPI surged to a 10-year high of +4.9% in Q3, which was some way above the +4.2% expected. Looking forward, equity futures in the US are pointing lower, with those on the S&P 500 down -0.11%. Another interesting weekend story comes again from the Bank of England, which seems to be using the weekends of late to prime the markets for imminent rate hikes. Governor Bailey yesterday said inflation “will last longer and it will of course get into the annual numbers for longer as a consequence… That raises for central banks the fear and concern of embedded expectations. That’s why we, at the Bank of England have signalled, and this is another signal, that we will have to act. But of course that action comes in our monetary policy meetings.” It’s difficult to get much more explicit than this and it’ll be interesting to see if we get even more priced into the very immediate front end this morning. For now, sterling has seen little change, weakening -0.13% against the US dollar, but markets were already pricing in an initial +15bps move up to 0.25% by the end of the year before the speech. Now the big China data is out of the way we’ll have to wait until Friday for the main releases of the week, namely the global flash PMIs. Outside of that, there’s plenty of Fedspeak as they approach the blackout period at the weekend ahead of their November 3rd meeting where they’re expected to announce the much discussed taper. On top of this, earnings season will ramp up further, with 78 companies in the S&P 500 reporting. Early season positive earnings across the board have definitely helped sentiment over the last few days. 18 out of 19 that reported last week beat expectations across varying sectors. As examples, freight firm JB Hunt climbed around 9% after beating, Alcoa over 15% and Goldman Sachs nearly 4%. So much for inflation squeezing margins. My view remains that we’re still seeing “growthflation” and not “stagflation”, particularly in the US even if there are obvious risks to growth. For now, there is still a buffer before we should get really worried. On the back of the decent earnings, the S&P 500 had its best week since July last week and is now only less than -1.5% off its record high from early September. Given that earnings season has made a difference the 78 companies in the S&P 500 and 58 from the Stoxx 600 will be important for sentiment this week. In terms of the highlights, tomorrow we’ll get reports from Johnson & Johnson, Procter & Gamble, Netflix, Philip Morris International and BNY Mellon. Then on Wednesday, releases include Tesla, ASML, Verizon Communications, Abbott Laboratories, NextEra Energy and IBM. On Thursday, there’s Intel, Danaher, AT&T, Union Pacific and Barclays. Lastly on Friday, well hear from Honeywell and American Express. It’ll also be worth watching out for the latest inflation data, with CPI releases for September from the UK, Canada (both Wednesday) and Japan (Friday). The UK is by far and away the most interesting given the recent pressures and likely imminent rate hike. This month is likely to be a bit of calm before the future storm though as expectations are broadly similar to last month. Given the recent rise in energy prices, this won’t last though. In terms of the main US data, today’s industrial production (consensus +0.2% vs. +0.4% previously) will be a window into supply-chain disruptions, particularly in the auto sector. Outside of that, you’ll see in the day-by-day week ahead guide at the end that there’s a bit of US housing data to be unveiled (NAHB today, housing starts and permits tomorrow). Housing was actually the most interesting part of the US CPI last week as rental inflation came in very strong, with primary rents and owners’ equivalent rent growing at the fastest pace since 2001 and 2006, respectively. The strength was regionalised (mainly in the South) but this push from recent housing market buoyancy into CPI, via rents, has been a big theme of ours in recent months. The models that my colleague Francis Yared has suggest that we could be at comfortably above 4% inflation on this measure by next year given the lags in the model. Rents and owners’ equivalent rent makes up around a third of US CPI. So will a third of US inflation be above 4% consistently next year before we even get to all the other things? Moving to Germany, formal coalition negotiations are set to commence soon between the SPD, the Greens and the FDP. They reached an agreement on Friday with some preliminary policies that will form the basis for talks, including the maintenance of the constitutional debt brake, a pledge not to raise taxes or impose new ones, along with an increase in the minimum wage to €12 per hour. There are also a number of environmental measures, including a faster shift away from coal that will be complete by 2030. The Green Party voted in favour of entering the formal negotiations over the weekend, with the SPD agreeing on Friday, and the FDP is expected to approve the talks today. Reviewing last week now and strong earnings, along with the rather precipitous decline in long-end real yields drove the S&P 500 +1.82% higher over the week (+0.75% Friday), while the STOXX 600 gained +2.65% (+0.74% Friday). No major sector ended the week lower in Europe, while only communications (-0.52%) were down in the U.S. Interest rate sensitive sectors were among the outperformers in each jurisdiction. The 2s10s yield curve twist flattened -11.7bps over the week, as investors brought forward the timing of an increase to the Fed’s policy rate, driving the 2-year +7.8bps higher (+3.5 bps Friday), whilst the 10-year declined -4.2 bps (+6.0bps Friday). This is consistent with our US econ team bringing forward their call for the Fed lift-off to late 2022. Markets are actually pricing in a 50/50 likelihood of a hike by June. Particularly notable was the decline in long-end real yields, with 10yr real yields finishing the week -9.5bps lower, and at one point closed beneath the -1.00% mark for the first time in a month. Hence breakevens were up +5.4bps to 2.565%, leaving them right around their year-to-date highs last reached in May. The curve flattening trend was a global one last week, with 2-year gilts yields up +3.7bps whilst the 10-year fell -5.2bps. The bund curve flattened mildly as well, with 2-year bunds increasing +2.6 bps and the 10-year -1.6 bps. 10-year breakevens increased +7.9 bps in the UK, and +7.3 bps in Germany, which marks the highest reading since 2008 in the UK and the highest in Germany since 2013. The increases in inflation compensation were matched by commodities. WTI and Brent futures increased +3.69% and +3.00%, respectively last week, whilst metals also posted strong gains, with copper up +10.62% and aluminium +6.93% higher on the week. On the data front, September retail sales were much stronger than expectations, with the prior month’s components being revised higher across the board as well. The University of Michigan consumer survey saw sentiment and 5yr inflation expectations dip, while year ahead inflation expectations inched up to 4.8%. Friday’s strong data brought a brief reprieve from the curve flattening exhibited the rest of the week. Tyler Durden Mon, 10/18/2021 - 07:41.....»»

Category: worldSource: nytOct 18th, 2021

"It Was Just A Big Poker Game": Michael Dell Talks Dealing With Carl Icahn, Semi Shortage, In New Interview

"It Was Just A Big Poker Game": Michael Dell Talks Dealing With Carl Icahn, Semi Shortage, In New Interview Among what are likely pages of overused boring business anecdotes, Michael Dell's new book, "Play Nice But Win: A CEO’s Journey From Founder to Leader", also includes an interesting look at doing business with Carl Icahn.  Dell recently sat down with Bloomberg for an interview and revealed some of the book's details, as well as his take on current events in the semiconductor industry, which has been experiencing a year long shortage..  Speaking about when Carl Icahn took a stake in Dell and tried to prevent the company from going public, Dell said: "I didn’t really have much experience dealing with someone who would just go on television and lie." He claimed that after confronting Icahn, he found out that the "activist" didn't even have a plan for the company. Dell said: "I did go to his house and confront him, and I saw he didn’t have any plan whatsoever for the company. To him it was just a big poker game." In other news, Dell believes that the semiconductor shortage could wind up persisting.  "It takes about three years to build a new semiconductor plant. We’re only 18 months into this," he told Bloomberg. "We’ve heard from our customers that our supply chain is functioning well. They may not like the lead time, but it’s predictable and reliable." Dell pointed out that he thought government should do more to provide infrastructure for semiconductors in the United States.  "When you have China investing so aggressively in these strategic areas and the U.S. and Europe not, it creates a real challenge," he said. Tyler Durden Fri, 10/15/2021 - 19:30.....»»

Category: blogSource: zerohedgeOct 15th, 2021

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

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

Category: personnelSource: nytOct 15th, 2021

Macy"s Stock Gets Boost From Jana Partners: What To Know

Jana Partners LLC, an activist investment firm founded by hedge fund executive Barry Rosenstein, has taken a stake in Macy’s Inc. (NYSE: M) and has called on the company’s leadership to spin off its e-commerce operations. read more.....»»

Category: blogSource: benzingaOct 15th, 2021