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How President Biden"s symbolic gas tax cut will impact oil markets

President Biden made a symbolic gas tax cut, and the latest dispatch from the NFT.NYC conference. This and more, in today's edition of the Opening Bell newsletter. Top of the morning readers, Phil Rosen here. Yesterday I sat down with the CEO of Doodles — an NFT project of cute sketches that has topped $500 million in sales. He explained how he's aiming to transform the NFT collection into an entertainment brand, and that Doodles could still hold value through a recession. Get the full scoop in my latest dispatch from the conference.That said, President Biden is sweating gas prices a lot more than the current crypto bear market.Let's see what he's planning — and how it impacts oil markets. Biden announces a ban on US imports of Russian oil and gas at the White House on March 8, 2022.Jim Watson/AFP via Getty Images1. High prices means Biden wants a holiday — a gas tax holiday, at least. The White House called on Congress yesterday to suspend the federal gasoline tax, though the move is largely symbolic and comes as prices at the pump weigh on his re-election ambitions and inflation squeezes Americans.While it's possible that relatively cheaper gas actually fuels more demand — thus pushing prices up even further — oil actually slumped through most of yesterday, falling as much as 7%.That's because the market is also digesting a wave of recession forecasts that would almost certainly lead to a diminished outlook for oil demand. As the White House points to war in Ukraine as reason for high gas prices and economic turmoil, the recession alarms continue to ring. Deutsche Bank's CEO put the odds of a global recession at 50%, and JPMorgan's Jamie Dimon has warned of an impending economic "hurricane."Wells Fargo chief Charlie Scharf said there was "no question" of a downturn, and Citi also says the odds are high."We have the probability of a recession at about 40% going into next year. We wouldn't see that until next year just because the tightening that we're seeing around the Fed generally takes around 12 to 18 months to really show up in economic conditions," a Citi exec said.Insider finance correspondent Aaron Weinman, who writes 10 things on Wall Street, went on CBS News last night to chat about Biden's gas tax holiday. See the video here.Russian President Vladimir Putin (R) and Federal Security Service FSB Chief Alexander BortnikovMikhail Svetlov/Getty Images2. US stocks climbed after closing lower in Wednesday's session, while oil extended its losses. Fed Chair Powell told Congress yesterday that the central bank is "strongly committed" to taming inflation, and said a recession could be a possibility. Powell is slated for more comments today, too. Here is your morning wrap.3. On deck today: PetroChina Company Limited, FedEx, and BlackBerry, all reporting.4. Goldman Sachs shared where investors can make the most money when stocks eventually begin their recovery. According to bank analysts, the outlook for stocks will likely brighten toward the end of the year. Here's how they say you can know when the bottom hits.5. Altria plunged 10% after a report said the FDA will ban Juul vaping products from the US market. Altria paid $12.8 billion for a 35% stake in Juul back in 2018 when the product boomed among teens. Now, Juul's market share of US e-cigarettes has dipped to second place — which could be a boon for other US tobacco manufacturers.6. Vladimir Putin said Russia's trade with China, India, Brazil, and South Africa has jumped since war in Ukraine began. Trade has increased by 38%, according to the Russian president — and Moscow continues to rake in big money from oil and gas sales.7. FTX's founder Sam-Bankman Fried bailed out BlockFi. He gave the struggling crypto lender a $250 million loan. But it wasn't the first one this month — last week the billionaire also loaned $485 million to Voyager Digital. 8. These steady-returning stocks can help you profit from an approach that's overlooked but ready to stage a comeback. While the bear market craters share prices, Jefferies says that investors have sold sensibly-priced growth stocks — which puts them in a position to recover after a poor performance.9. "Super savers" broke down the strategies they use to save more than half their income. If you want to keep more of your paycheck, use these tried and true saving tacts, from house hacking to tracking your spending habits.Madison Hoff/Insider10. Companies are passing higher costs to shoppers at the fastest pace since the 1950s, a new study finds. Corporate markups hit a record high in 2021, with brands on average charging about 72% more than their input costs. Researchers say reversing that surge is one way to combat soaring inflation.Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.) Edited by Max Adams (@maxradams) and Lisa Ryan (@lisarya) in New York. Read the original article on Business Insider.....»»

Category: personnelSource: nytJun 23rd, 2022

Americans Will Never Forget The Historic Economic Collapse During Joe Biden"s Presidency

Americans Will Never Forget The Historic Economic Collapse During Joe Biden's Presidency Authored by Michael Snyder via TheMostImportantNews.com, We have faced a lot of significant challenges in modern American history, but nobody will ever forget the economic horror that is breaking loose during Joe Biden’s time in the White House.  For years, we were warned that the policies that our leaders were pursuing would destroy the value of our currency and unleash rampant inflation.  Now it has happened.  For years, we were warned of a looming global energy crisis that would inevitably hit us.  Now it is here.  But what we have been through already is just the beginning.  The shortages that we are experiencing now will get worse.  Many of the ridiculously high prices that we are seeing now will seem like bargains by the end of the year.  And right now the U.S. economy appears to be rapidly slowing down at the exact same moment that economies all over the globe are moving in the wrong direction.  The CEO of Goldman Sachs just told us that “there’s going to be tougher economic times ahead”, and he is not exaggerating one bit. On Thursday, the average price of a gallon of gasoline in the United States reached yet another brand new all-time record high… US gas prices have hit a new high of $4.71, just a day after hitting the record as seven states top off at $5 a gallon as inflation soars. The national average jumped four cents overnight, leaving drivers in even more despair as gas prices continue to skyrocket emptying their wallets. If Americans don’t like paying about five bucks a gallon, how are they going to feel when it takes about 10 bucks to buy a gallon of gas? Fortunately, we did just get a bit of good news that should provide some temporary relief… OPEC and its oil-producing allies agreed on Thursday to hike output in July and August by a larger-than-expected amount as Russia’s invasion of Ukraine wreaks havoc on global energy markets. OPEC+ will increase production by 648,000 barrels per day in both July and August, bringing forward the end of the historic output cuts OPEC+ implemented during the throes of the Covid pandemic. Unfortunately, this isn’t really going to change the trajectory of where we are heading. In fact, one energy expert says that this is essentially just a symbolic gesture… Robert McNally, president of Rapidan Energy Group and a former energy adviser to President George W. Bush, said prices rallied Thursday because the OPEC move was “more symbolic than fundamentally significant.” “I wouldn’t call it a drop in the bucket. It’s basically a gesture… an important one symbolically,” he told CNN Business. What we really need are long-term solutions, and there aren’t any on the horizon. And the truth is that we aren’t just facing an oil crisis.  At this stage, the balance between supply and demand has reached a crisis point for all traditional forms of energy simultaneously… “Now we have an oil crisis, a gas crisis and an electricity crisis at the same time,” Fatih Birol, head of the International Energy Agency watchdog group, told Der Spiegel in an interview published this week. “This energy crisis is much bigger than the oil crises of the 1970s and 1980s. And it will probably last longer.” The global economy has largely been able to withstand surging energy prices so far. But prices could continue to rise to unsustainable levels as Europe attempts to wean itself off Russian oil and, potentially, gas. Supply shortages could lead to some difficult choices in Europe, including rationing. What do you think the European economy will look like when there is widespread rationing of natural gas six months from now? Can anyone out there answer that question? We have never faced anything like this before, and one industry insider is referring to this as a “perfect storm”… Joe McMonigle, secretary general of the International Energy Forum, said he agrees with this depressing forecast from the IEA. “We have a serious problem around the world that I think policymakers are just waking up to. It’s kind of a perfect storm,” McMonigle, whose group serves as a go-between for energy producing and consuming nations, told CNN in a phone interview. Isn’t it funny how that term keeps popping up? For years, I warned that a “perfect storm” was coming over and over again, and now that term has constantly been in the news throughout this year. Another element of the “perfect storm” that we are facing is the rapidly growing global food crisis. Here in the United States, the bird flu pandemic that has erupted in 2022 has resulted in 38 million chickens and turkeys being wiped out. As a consequence, the price of eggs has been soaring to unprecedented levels… The price of eggs increased 10.3% in April. The UDSA predicts an increase between 19.5% and 20.5% year over year in 2022. That could mean $1.00 an egg. Poultry prices will rise as much as 9.5%. Did you ever imagine that you would be paying a dollar for a single egg? I still remember when you could get an entire carton of eggs for one dollar. Chicken meat and turkey meat will be getting more expensive too, and now we are being warned that shortages are coming. In fact, the CEO of Hormel Foods is openly telling us that “large supply gaps in the Jennie-O Turkey Store will begin in the third quarter”… A top US food processing company warned of an upcoming shortage of its turkey products at supermarkets following one of the worst bird flu outbreaks. “Our Jennie-O Turkey Store team is facing an uncertain period ahead,” Hormel Foods Corporation CEO Jim Snee told investors in an earnings call. “Similar to what we experienced in 2015, (avian influenza) is expected to have a meaningful impact on poultry supplies over the coming months.” Snee said the “large supply gaps in the Jennie-O Turkey Store will begin in the third quarter.” He said highly pathogenic avian influenza was confirmed in “our supply chain” in March. In case you didn’t get the point of what he was saying, “large supply gaps” is a politically correct way of saying “widespread shortages”. Speaking of shortages, the baby formula shortage in the United States is now worse than ever… But, as Bloomberg reports, out-of-stock rates climbed to 74% nationally for the week ending May 28, according to data on 130,000 stores followed by Datasembly. The increase comes after rates spiked to 70% for the week ending May 21 from 45% the week prior. Even more stunningly, ten states now have shortage rates at 90% or greater, with Georgia hardest hit at 94%. The Biden administration made a really big deal out of the fact that they were flying in baby formula from Europe, but once again that turned out to mostly be a symbolic gesture. As economic conditions continue to deteriorate, an increasing number of Americans will fall into poverty and hunger.  In fact, according to NPR “demand at food banks is way up again”, and many of those food banks are already at a crisis point… Fitzgerald, of Feeding America, says providers around the country are dipping into emergency reserves, switching to cheaper products, limiting how often people can visit or how much food they can get, and “stretching their inventory to be able to meet more people’s needs.” If our food banks are in such distress now, what will things be like six months or a year from today? Because the truth is that food supplies are only going to get tighter. The winter wheat harvest in the U.S. is going to come in way, way below original expectations.  In fact, we are being told that the winter wheat harvest in Kansas could be down “by more than 25%”… The U.S. winter wheat harvest potential in Kansas has dipped by more than 25% because of severe drought, and farmers in the state may leave thousands of acres of wheat in fields this year instead of paying to harvest the grain hit by the dry winter. Looking ahead, a lot less wheat is being planted for the coming growing season because of extremely bizarre weather patterns in some areas. For example, the amount of wheat that is currently being planted in North Dakota is expected to be the smallest ever recorded… Some farmers in North Dakota are unable to plant as much wheat as they normally would because of heavy rain across the state. Government data shows the state is expected to plant wheat over the smallest recorded share of its farmland. For much more on why U.S. food production is going to continue to shrink in the months ahead, please see this article. The bottom line is that we are facing really severe problems that are not going to go away any time soon. And if you are waiting for Joe Biden to come to the rescue, you are going to be waiting for a very long time… The president of the United States says he understands that inflation is impacting family budgets. But on Wednesday, he said he’s not “aware” of any “immediate action” that would reduce food and fuel prices. “[W]e can’t take immediate action, that I’m aware of yet, to figure out how we bring down the price of gasoline back to three dollars a gallon. And we can’t do that immediately with regard to food prices, either,” Biden said. A historic economic nightmare is here, and the guy in the White House is all out of answers. So buckle up and try to enjoy the ride. The months ahead are going to be quite chaotic, and you probably don’t even want to think about what is coming after that. *  *  * It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon. Tyler Durden Fri, 06/03/2022 - 21:40.....»»

Category: worldSource: nytJun 3rd, 2022

Real Estate Leaders Discuss Moving the Needle Forward With DEI

It’s hard to argue that “diversity” and “inclusion” haven’t become some of the most prominent terms within the business lexicon. While both have become corporate imperatives in recent years, they’ve also catalyzed a long-overdue dialogue within companies. The real estate sector has been no exception to this trend. Industry leaders spoke with RISMedia about taking […] The post Real Estate Leaders Discuss Moving the Needle Forward With DEI appeared first on RISMedia. It’s hard to argue that “diversity” and “inclusion” haven’t become some of the most prominent terms within the business lexicon. While both have become corporate imperatives in recent years, they’ve also catalyzed a long-overdue dialogue within companies. The real estate sector has been no exception to this trend. Industry leaders spoke with RISMedia about taking targeted approaches to promote diversity, equity and inclusion (DEI) in their respective markets and companies and why it’s important to act now. Sue Yannaccone, president and CEO of the Realogy Franchise Group, says that recent years have provided a reality check that many companies needed to start making a change. In a previous interview, Yannaccone stated that the “newfound focus on diversity” among businesses has often resulted in “symbolic gestures to ‘check a box.'” “We can’t solve the myriad injustices across racial, ethnic and gender lines with a broad-brush approach; your solutions should be targeted and prescriptive,” she said. She didn’t deviate from that stance the last time she spoke with RISMedia about ongoing efforts at Realogy and its subsidiaries to continue developing its DEI solutions in real estate. “We realize that the programs that we have must have a real impact,” Yannaccone says. “There are a lot of companies and people that will sponsor an event, but we really wanted to move past that checking the box, realizing that to have a real impact, you have to carry it through, and there has to be a continued evolution.” That ongoing evolution has been a north star for Realogy’s efforts, according to Yannaccone, who notes that each program the real estate giant implements pursues specific goals to improve engagement among participants. The company has tried to accomplish this through several initiatives like Coldwell Banker’s Inclusive Ownership Program, which aims to support diverse broker/owners in their first two years. Realogy expanded the program to its brands and has had more than 30 companies participate in the program since its 2020 launch. According to Yannaccone, the company has seen a 72% increase in gross commission income (GCI) through the program. “That is a meaningful increase, but it’s nowhere near done,” she says, adding that Realogy continues to hone the program among others to continue moving the needle forward across the company and its brands. In many cases, acknowledging the need for a change in real estate is a step that industry leaders are still working on these days, according to Kymber Lovett-Menkiti, regional director, Maryland/DC Region, Keller Williams Realty International (KW). “There are some companies and brands that don’t think there is a need to have the conversation, so I think that the first domino is the acknowledgment that there is a need for DEI to have a seat at the table,” she says. Lovett-Menkiti tells RISMedia that KW has engaged in nationwide dialogue among agents and leaders to source ideas on making a “sustained impact in the DEI space.” While part of that showed up in the form of KW amending its core beliefs and company values to include equity—admittedly a first for the company—she says the conversation has led the company to prioritize creating “opportunities for all” in real estate. The open dialogue and effort to improve diversity in the industry goes a long way toward building trust among consumers, according to Juan Sanchez, a Denver-based real estate agent with CENTURY 21 Bear Facts Realty. “The only way to help individuals is if we have their trust,” he says. “The best way that we can earn their trust is to be upfront and honest with them, give them the education and talk to them as peers.” Sanchez says he has been connecting with local organizations to offer scholarship opportunities for people in underrepresented communities to become real estate agents. According to Lovett-Menkiti, Keller Williams has taken a similar approach to education and lowering barriers to entry into real estate by launching the KW School of Real Estate (KSCORE), a national, fully digital real estate training program. “Real estate is an unkept/untapped business in terms of your ability financially to succeed, and yet the entry point can be difficult, particularly in underserved communities,” she says. Promoting diverse leadership is also a priority, according to Lovett-Menkiti, who says that the KW has also developed a coaching program that provides a pathway for agents that want to become a broker/owner. “If you look around and don’t see people who look like you, it becomes hard for you to imagine what you could be,” she says. Lennox Scott, chairman and CEO of John L. Scott Real Estate echoed similar thoughts. From setting up an internal committee dedicated to DEI efforts to promoting continued education among leaders throughout the brokerage, he says that he and his leadership team have prioritized outreach, invitation and engagement throughout the company. “Together, we are creating a safe, supportive and productive environment for everyone, which leads into our business practice, supporting our clients,” he says. To do that, Scott suggests that education is a significant vehicle to help position his leadership team to become agents of change. He purports that John L. Scott Real Estate has encouraged office leaders and executives to undergo DEI training through several programs that the National Association of REALTORS® (NAR) has developed. The brokerage has had its entire support team participate in the NAR implicit bias and fair housing video training programs. Scott also says that 120 of its executive and office leadership members will participate in NAR’s LEAD DEI courses in the coming months. “This education affirms our business practices, and it reminds us to continue elevating the conversation,” Scott says. “This is a journey taking place today to bring our awareness level up so we can take those next steps. Jordan Grice is RISMedia’s associate online editor. Email him with you real estate news ideas, jgrice@rismedia.com. The post Real Estate Leaders Discuss Moving the Needle Forward With DEI appeared first on RISMedia......»»

Category: realestateSource: rismediaMar 31st, 2022

Women in Real Estate: It’s Time to ‘Play to Win’

In the wake of the pandemic, new challenges as well as new opportunities have arisen for women, and many new lessons have been learned. To honor Women’s History Month, we talked to some of the industry’s top female thought leaders to gauge the current state of women in real estate, including how far we’ve come, […] The post Women in Real Estate: It’s Time to ‘Play to Win’ appeared first on RISMedia. In the wake of the pandemic, new challenges as well as new opportunities have arisen for women, and many new lessons have been learned. To honor Women’s History Month, we talked to some of the industry’s top female thought leaders to gauge the current state of women in real estate, including how far we’ve come, and how much progress remains to be made. Candace Adams President & CEO Berkshire Hathaway HomeServices New England/Westchester/New York/ Hudson Valley Properties Helen Hanna Casey President & CEO Howard Hanna Real Estate Services   Sherry Chris President & CEO Realogy Expansion Brands   Lacey Conway CEO Latter & Blum   Bess Freedman CEO Brown Harris Stevens   Kymber Menkiti Regional Director, Keller Williams; President, Keller Williams Capital Properties   Teresa Palacios Smith  Chief Diversity, Equity & Inclusion Officer HomeServices of America   Desiree Patno CEO NAWRB/Women in the Housing & Real Estate Ecosystem   Jeanette Schneider President RE/MAX of Southeastern Michigan   Michael Saunders Founder & CEO Michael Saunders & Company   Sue Yannaccone President & CEO Realogy Franchise Group   What new challenges have women in real estate faced since the onset of the pandemic? Teresa Palacios Smith: According to a McKinsey study, the COVID-19 pandemic heightened the large and small inequalities—both at work and at home—that women face daily. This was true for women in real estate as they now had the added financial and emotional stress, along with the uncertainty of what the future held.  Women took on the primary role of managing home life and taking care of other family members while operating their real estate business. Women had to also adapt to a new way of doing business. From learning new technology, conducting virtual open houses, inspections and closings to keeping updated on government and institutional programs, combined with the emotional toll of not being able to visit relatives, parents and grandparents, additional challenges were created for women in all facets of business. Michael Saunders: The pandemic has had long-term repercussions on women, who were disproportionately affected. Not only did women have to be wage-earners, they had to handle childcare and remote schooling. I think women took on the psychological ownership of the impact of the pandemic on the family. I don’t think any of us are unscarred by the pandemic. We have carried it with us. Sue Yannaccone: Needless to say, every professional needed to adapt to the initial jolt of remote work in 2020, balancing both their professional goals and personal wellbeing. But, the reality remains that women disproportionately juggle homelife responsibilities, and that dynamic was exacerbated by the shift to work-from-home. Far too often, women assume the daily household duties or are expected to be the primary caregivers for their children or elders, all while tending to the demands of the workplace. We have a long way to go in dismantling the structural and cultural practices that are at the core of this inequity, but women in real estate stood at the forefront of a historic year for the real estate market, in which we witnessed numerous record-breaking efforts from women brokers, agents and leaders. Sherry Chris: The pandemic really brought to the forefront what it’s like for working women with children. Women with children faced the challenge of navigating childcare and virtual school while adapting their work routines and responsibilities to ensure continuity with clients, all while adhering to safety guidelines. In addition, women had to find ways to stay connected and relevant to their spheres, which took tremendous time and energy, coupled with the overall stress and anxiety of living in a pandemic. I would also say that in some cases, women had to take a back seat and put their careers on hold to care for their children. Bess Freedman: A lot of women lost their jobs because they couldn’t focus on everything. They pulled themselves out of the workforce to support their children’s mental health and academics, to shoulder most of the burden of unpaid work that men never do. During the pandemic, so many women had to take their focus off of work and career. Women got hurt so much more than men during the pandemic. Despite the challenges, have pandemic times opened up new opportunities for women in real estate? Helen Hanna Casey: Absolutely! This has just been amazing, what we have learned and mastered. The opportunities that were available to learn and grow were greater during the pandemic than any other time we have experienced. Women seized the moment!  We had more of our REALTORS® engaged in Hanna University, Martech Training and general learning experiences. Women relied on each other, which they have always done, but even more so during the pandemic. Today, as a result, they are better equipped to handle the needs of everyone around them, but their skill sets in social media, digital marketing and virtual open houses have catapulted everyone so far beyond what any of us could have imagined our capabilities even being. Candace Adams: The pandemic has caused extreme stress and anxiety, and women tend to be more emotionally intelligent and caregiving. Those qualities became critical in leadership and have opened pathways for women to advance in their industries, providing a more balanced work environment. Jeanette Schneider: Women have been able to grow their production as an individual or by growing a team. The pandemic has many women looking for career opportunities that are flexible. I have seen women who have been in car sales or teaching entering real estate as a career, and they have skills that can transfer very nicely into the real estate industry. We have seen women take on broker and ownership roles over the past couple of years or expand their business through mergers with other companies. Women have also found or expanded their voice in real estate—and by this, I mean embracing video to communicate and engage with past clients, sphere of influence and others. Desiree Patno: There has been a new sense of awareness to help dig deeper to understand some of the issues that have plagued our industry for decades. Women are stepping up and creating more startup companies with alternative ways to capitalize on the real estate market. From investing, creative management services and niche real estate verticals, including the metaverse, women are turning the dial outside of the normal traditional marketplace. Lacey Conway: COVID made us all take a hard look at career and health—some checked out and others dug in. There is an awareness of the need for women in real estate and leadership, and a big opportunity for women to step up. I also think shifts in workplace flexibility and more control over schedules due to remote work have been challenges, but created opportunities for many. Kymber Menkiti: In some ways, women have more advantages because we’ve been balancing and juggling well before the pandemic. So women have risen to the occasion because we already had the ability to manage under stress and pressure. I’ve certainly seen women rise to the occasion and really lead with feminine leadership. We need this, especially in times of difficulty and uncertainty. This has given women a competitive opportunity. The ability to be remote allowed the ability to flex into roles that maybe would’ve been harder to attain. In the last 24 months, less networking happened on the golf course, and this allowed women to be more present in networking opportunities. Sherry Chris: Many women joined real estate because of a career change precipitated by COVID. Now they are firmly in control of their career and earnings, working in an environment that offers work-life balance flexibility. Today, the National Association of REALTORS® (NAR) reports that 65% of real estate professionals are women, and 60% of brokers are women. We’ve added a number of women-owned companies to our networks this past year, many of them former team leaders who took the next step in starting a brokerage. What are some of the most impressive advancements for women in the industry that you’ve witnessed over the past couple of years?   Bess Freedman: I would love to pretend that I thought there were advancements. I don’t believe that there have been. As I look around our industry, I see that the owners of most companies are all men. I’m CEO, but I work for a chairman and owner who are men. There are no female developers. VC and hedge funds are all men. Women don’t have a big enough stake in real estate. There are incredible opportunities for growth for women—we have to keep pushing. Men need to open the door and encourage some new blood in that environment. We need men to coach them along, to mentor them. Michael Saunders: There hasn’t been enough advancement for women in the industry. If you look at national franchises and state associations, it’s predominantly still men at the top. And more than ever, women want to control their professional and financial destiny. I think that women naturally have the skills that are paramount to being successful. We have a long way to go and much to do, but I do think that everyone from NAR to state organizations to LeadingRE and Luxury Portfolio have focused on tracks for leadership development for women. Teresa Palacios Smith: With the backdrop of a global pandemic, a record number of women within the HomeServices family of companies were elevated to top positions. Women have taken on more leadership roles within the real estate industry. There have only been seven women who have led the National Association of REALTORS® in its 115-year history, and this past November, Leslie Rouda Smith took the helm as president for the largest trade organization in the world. Leslie explained during a recent conversation on the Facebook series “Women Who Lead” that for the first time in the history of NAR, there are more women than men on the leadership team. Candace Adams: We’ve seen a heightened sensitivity to equality in general in the last few years, and women have been among the beneficiaries of the light shining on diversity and inclusion. Women represent approximately 67% of the country’s real estate agents; however, leadership is not representative of that. In the past, men have mainly dominated leadership roles, but in the last few years, we have seen significant improvement in the opportunities available to women, and more and more are sitting in the C-suites. Helen Hanna Casey: Personally, I think real estate sales, brokerage, residential, commercial, mortgage banking, insurance and title have always been ripe for women successes. For over 70 years, women have helped shape our industry.  As the industry grows, we need more bright, multi-talented women to open new doors to new potential for all of us. At Howard Hanna, we believe we have created opportunities for women since our founding. Certainly, we have seen the number of women executives growing year after year. They are CEOs, COOs, CFOs, CLOs, CMOs, CGROs and presidents, and that is just at Howard Hanna. With the baby boomer generation aging and retiring, there will be even more opportunities for women leaders, opportunities for the best and the brightest that want to win! Kymber Menkiti: I feel like we have a lot of work to do. One of the things I’m seeing more, is men calling attention to the need for women and diversity in general in their leadership. At the end of the day, it’s going to be up to the male-dominated leadership in our industry. You have to change the people who are in front of you. If you don’t change who’s in front of you, we’ll continue that constant cycle. I became the first Black regional president for Keller Williams. We had White guys there for a long time. They had to look up and make sure they were drawing from a diverse pool—that was their intentionality. They have to be more intentional about tapping the shoulders of women and saying, ‘hey, are you interested?’ The other issue is being able to find other women leaders as mentors. It’s a pretty empty path in our industry. Lacey Conway: Impressive women in real estate are not something new, although I am delighted that they are being recognized more and more. I was so pleased to see Sue Yannaccone take on the role of CEO for Realogy Franchise Group and Christy Budnick named CEO of  Berkshire Hathaway HomeServices—both big roles and big promotions. I also like to witness women like Michael Saunders and Helen Hanna Casey be recognized for their major roles, but acknowledging their longevity, contributions and continued success in this business. How are you addressing diversity in your firm? What advice would you share with other real estate leaders for addressing diversity issues?   Sue Yannaccone: What Moves Her, an effort that I launched in 2020 to support women’s paths to leadership in real estate, has reached over 5,000 women in the industry through its programming. Ascend, our educational course for training our next generation of broker/owners, has more than doubled its participation from aspiring minority leaders. Meanwhile, our Inclusive Ownership Program has onboarded dozens of new diverse franchise owners in recent years, providing the support infrastructure, mentorship and financial incentives to empower more minority entrepreneurs in our industry. My advice to other leaders in our industry who are seeking to address diversity issues: Ensure that your efforts are designed to make a genuine impact. The unfortunate, under-discussed aspect of the business world’s newfound focus on diversity is that it often results in symbolic gestures to “check a box.” We can’t solve the myriad injustices across racial, ethnic and gender lines with a broad-brush approach; your solutions should be targeted and prescriptive. Jeanette Schneider: You can learn a lot from being willing to have a conversation and learn from others. We don’t all have the same life experiences, and being willing to really listen to other points of view can change your approach to things moving forward. RE/MAX has been a sponsor of the Asian Real Estate Association of America (AREAA) for five years, and in 2021, we participated in the Diversity and Fair Housing Summit that was part of the AREAA event. RE/MAX also led the National Association of Hispanic Real Estate Professionals’ (NAHREP) list of top Latino agents. We look for opportunities to be part of organizations that support diversity. Kymber Menkiti: Keller Williams added a head of Diversity, Equity and Inclusion, Julia Lashay Israel. They were able to identify a strong female leader of color who was in the agent base and has now come to be in the C-suite. Also, our free real estate school, which was birthed out of our social equity taskforce, was a way to level the playing field for women and people of color. I also founded an organization called Her Best Life, to amplify the voice of women in leadership in business. We need to come together and create these tribes where we feel connected and pour into other women. I live by the mantra, “lift while you climb.” Helen Hanna Casey: We have always been involved in community outreach to diverse populations. I think it is important that women themselves take leadership roles within those community organizations as examples to their companies. Our COO, Annie Hanna Cestra, has chaired the Urban League of Pittsburgh and been its Chair of Development for many years. We as a company are involved in the national Dress for Success campaign, which provides much more than clothes. On the educational forefront, it is imperative that we offer training and education on diversity and inclusion to help overcome unconscious bias within our daily lives. Education is also important to our communities, so we have funded scholarships through the educational promise, urban leagues, University of Pittsburgh and John Carroll University, in addition to funding women’s colleges in our markets. Teresa Palacios Smith: At HomeServices, we are committed to a robust education plan for our leaders, employees and network agents, which includes training on implicit bias, inclusive language and NAR’s (seven-hour) At Home with Diversity Course. I am proud to say that, beginning with our CEO, Gino Blefari, 100% of the HomeServices-owned companies’ leadership participated in all our seminars and classes. We also have continued partnerships with national organizations such as AREAA, NAHREP and NAREB. We are committed to bringing more women into leadership roles, supporting the work of organizations like NAWRB, Professional Women in Building (NAHB-PWB) and the Women’s Council of REALTORS®, along with a Facebook and podcast series “Women Who Lead.” We are also proud to be a founding sponsor of the LGBTQ+ Real Estate Alliance and work closely to expand our Veteran workforce by partnering with VAREP. What advice would you share with women aspiring to advance their careers in the real estate industry? Candace Adams: My advice to anyone wanting to advance their careers in real estate is to first be knowledgeable, educated and an expert in the industry. Understanding the many facets of the business, from sales to operations, can help foundation a career for growth. Be yourself, be confident and actively search for new opportunities. Michael Saunders: Be bold! Be curious! Have a strong set of values, stay focused and be really determined. Don’t let anyone deter you from your goals. Core values are critical and should be a guiding light of every woman. Don’t be afraid to take risks. Bess Freedman: Most importantly for women, I encourage them to shift their mindset. Instead of playing not to lose, play to win. Understand your value. So often we hear women say things like, “I was afraid to ask for a raise or a promotion.” It’s intimidating. But be clear about what your worth is, and know what you want. Men do it every day. Women need to stop tip-toeing and stop saying sorry. Lacey Conway: Go for it, and make it your own. It’s okay to grow into your role. Plenty of studies have shown that men tend to run after opportunities when they open up, whether they’re qualified or not… whereas women tend to feel like they aren’t qualified even when they clearly are. When it comes to pursuing a career in real estate, I feel like women could do themselves a favor by reaching higher even when they might not feel ready. When we wait and wait and wait, we fall into the mindset that we’re not “yet” qualified, that we need just one more year of experience, one more leadership class, etc. These are just ways we trick ourselves into playing small. Sherry Chris: Women with aspirations of leadership should strategically network to create an extended team of counselors and advisors that can be called upon at any time. It’s also essential to understand you can’t be a superhero—for women with competing responsibilities, you have to compartmentalize. Being able to maximize and optimize time spent on work and other aspects of life lets you be fully present at all times. Sue Yannaccone: The path to leadership isn’t the same for everyone, and it’s never a straight line. Your aspirations should start with goals for your own personal growth, like accepting new challenges and learning more about your industry, rather than an end result, like becoming CEO or achieving a certain salary. With the benefit of hindsight, I can see that I was unknowingly defining my path to leadership the entire time through the ways in which I accepted new opportunities with a focus on immersing myself in the work. I allowed myself to adapt my passion and leadership style in real-time, rather than predefining an outcome. Helen Hanna Casey: Learn. Try new things. Ask questions. Seek mentors, both men and women, and remember that there are opportunities that you may not realize exist unless you look. In today’s workforce, there are specialties in every form of what we do. Develop and strengthen your own talents, and know what they are. As REALTORS®, we are the greatest negotiators in the world, yet writers and academics indicate that women do not know how to ask for the order, negotiate or brag about themselves. I do not think they have studied women REALTORS®! Our future leaders are among us, they just need to make themselves known. Desiree Patno: Follow your heart, passion and drive, never give up! If you have conviction, it will happen. Teresa Palacios Smith: Seek areas where you can expand your knowledge of the business, focus on your strengths and sharpen areas where you may not feel as comfortable. Be open to constructive criticism, and take the time to improve those areas so that you develop and expand your capabilities. When the opportunity arises for you to step into a new role where you can advance and learn a new area, or leap into a new venture, go for it, even if you are scared to death. Jeanette Schneider: Be present and use your voice. Show up to meetings and events where you get to meet people and expand your network and make it a point to engage in conversation with both people you know and those you don’t yet know. Don’t be afraid to be heard at these meetings. Find a mentor who can share their experience and provide some guidance. Kymber Menkiti: Every time you state what you want, don’t put a ceiling on yourself. Name what you want. You have to be very comfortable being uncomfortable. Women are much more calculated and need to know they’ll succeed before they jump in. You need to step outside of that and just jump in. Maria Patterson is RISMedia’s executive editor. Email her with your real estate news ideas, maria@rismedia.com. The post Women in Real Estate: It’s Time to ‘Play to Win’ appeared first on RISMedia......»»

Category: realestateSource: rismediaMar 16th, 2022

Top LinkedIn Newsletters Covering Innovation In Finance

Innovation in finance is one of many categories in which you could find success by changing your strategy. As the well-known quote goes: “Changing times require changing strategies.” In fact, you could apply that overarching principle to just about any category, even blindly, and maintain high confidence that your assessment will be correct. Given that […] Innovation in finance is one of many categories in which you could find success by changing your strategy. As the well-known quote goes: “Changing times require changing strategies.” In fact, you could apply that overarching principle to just about any category, even blindly, and maintain high confidence that your assessment will be correct. Given that there are so many evolving technologies related to the world of finance, it only makes sense to stay current on recent innovations. On the other hand, failing to keep up with financial innovation news, at best, might result in missing out on some great opportunities. At worst, you risk making your product or service obsolete and subsequently going out of business. .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Of course, not every tech tool or innovation related to handling your money will apply to your situation. Even so, it’s wise to strive to maintain a working understanding of how recent breakthroughs impact and perhaps even disrupt other industries. Schedule Regular Research Time - Pick Your Subscriptions Wisely Your reasons for keeping yourself current may vary, but they are invaluable for community building with other business people. While you might not personally prosper from some new tool, you may well know others who would. By becoming a go-to resource for others, you significantly increase that others will also keep an eye out for you. Unfortunately, every field is chock-full of self-appointed “experts” who may or may not have anything valuable to say. Far too many people are putting out information on financial innovation with eyes focused on self-promotion rather than authentically helping others. That’s not the case with the LinkedIn newsletters highlighted below. All eight of these publications are clear, helpful, and provided in the interest of helping business people navigate the ever-changing terrain of commerce as the ebb and flow of cash crashes into the digital realm. There are a variety of LinkedIn newsletters available, but here is a list of ones specific to the finance areas that can be good to follow. Innovation Re:Imagined Jeff Wong Jeff Wong is the Global Chief Innovation Officer for EY. He serves on the advisory board for AI4All, a nonprofit promoting inclusion and diversity in artificial intelligence, and is a member of the Council on Foreign Relations. EY is a global professional services firm whose purpose is to build a better working world. Its Global Innovation function, led by Wong, is focused on “creating new” innovations using disruptive technologies, opportunities to evolve the way we work now and in the future, and how to scale new solutions sustainably across organizations. A massive chunk of their business is in the financial services sector, so it only makes sense that Wong is a resource for finding out what’s on the horizon and how we can harness innovative solutions to unlock value. As the world emerges from the pandemic, living and working in new and collaborative ways is more important than ever. This is why innovation is so critical, from large to small companies across various industries – and even at an individual level. Wong’s newsletter has only recently launched, but the first three editions have all been thought-provoking and have given helpful insights on how to meet disruption with opportunity in today’s fast-changing world. Investment Insights Rob Sharps Robert Sharps is the chief executive officer and president of T. Rowe Price Group. He has served in various positions in the company since 1997, including co-head of global equity in investment leadership. Sharps became president and CEO in January of this year. As of this writing, Investment Insights has published 15 editions and has more than 20,000 subscribers. It tends to focus on taking the longer view on investing, analyzing data from all corners of the globe to pinpoint opportunities that might otherwise get missed. The newsletter only comes out when T. Rowe Price has something meaningful to contribute, and I actually appreciate that sort of publication schedule. All Things RedSwan CRE Edward Nwokedi CCIM MBA Edward Nwokedi has more than $3 billion in financial transactions and hundreds of clients credited to his account. As the founder and CEO of RedSwan CRE, Nwokedi is a specialist in the tokenized commercial real estate field. He is considered one of the leaders in the tokenization market for Class A, B, and C multi-family dwellings. The All Things RedSwan CRE newsletter just recently launched on LinkedIn, and only two editions are currently available online. That being so, it’s impressive that over 1,000 investors have already noticed. Tokenization promises to open up the real estate investment market to a broader range of investors, especially those just starting out or with limited access to capital. In addition, by investing small amounts over time, this type of innovation in the real estate market holds out the promise of democratizing the process and supporting otherwise-underrepresented segments of the investment crowd. Trends in Finance & Accounting Anders Liu-Lindberg Anders Liu-Lindberg is a leading voice when it comes to forming strategic partnerships. He is a co-founder of the Business Partnering Institute headquartered in Copenhagen. He also serves on the advisory board for Born Capital, which seeks innovation in CFOTech. Liu-Lindberg’s newsletter has more than a quarter-million subscribers and more than 200 editions. His posts are concise, practical, and provide a high-altitude view of financial trends poised to change how we conduct business. Liu-Lindberg also co-authored the book Create Value as a Finance Business Partner, wherein he shares further insights into the value of long-term, sustainable partnerships that provide a win-win in the fintech sector. The Future of Financial Advice Derek N.H. Notman, CFP D.J. Notman is a virtual financial advisor and certified financial planner. Notman is the founder of Intrepid Wealth Partners and seeks to assist other founders, entrepreneurs, startups, business owners, and their families in establishing financial plans that lead to long-term prosperity. Notman’s newsletter features a friendly, accessible approach that can seem less daunting to those who do not occupy the upper echelons of international financial markets. Honestly, that’s one of the things I find contributing to its appeal. Published biweekly, the newsletter has more than 12,000 subscribers and a genuinely memorable tagline: “Ideas for disrupting an industry as old as dirt.” So if you’re relatively new to financial innovation and how individuals can leverage it for smaller enterprises, Notman’s newsletter might serve as a great entry point. This Week in Finance Devin Banerjee, CFA LinkedIn is the world’s largest professional networking platform, with more than 830 million members from 200 nations. As an editor at large for LinkedIn, whatever Devin Banerjee publishes attracts a lot of eyeballs across the globe. Banerjee’s articles on finance, dealmaking, and innovation have appeared in The Wall Street Journal, Boston Globe, The Washington Post, and numerous other high-profile publications. This Week in Finance is published weekly and boasts more than 355,000 subscribers. Articles are concise yet link-heavy for those wanting to dive deeper. The subheads and bullet points allow readers to scan for items of interest or move on as desired. This is a tremendous service to those who do not have much time to invest in reading newsletters. The depth of research is evident, and it’s clear that the editors at This Week in Finance are all masters of saying a lot with a few carefully chosen words. Stock Market News (Breaking) Michael Spencer Michael Spencer is an independent writer who focuses on artificial intelligence, economics, data science, and quantum computing. His LinkedIn newsletter focuses on stock-related breaking news and market sentiment analysis, with over 100 editions published to date and more than 44,000 subscribers. Spencer’s newsletter takes a highly personal approach to the field. Newcomers will find items of interest regardless of industry. Subheads are clearly labeled, which the time-conscious will appreciate. This might be a great place to start for those new to investing. It offers a great “lay of the land” approach to help you navigate investments, technology, and outcomes. Blockchain, AI & Cybersecurity Alessandro Civati Alessandro Civati is passionate about helping businesses make data-driven decisions. His areas of expertise include blockchain and cybersecurity. Recently, he presented the EdVerso Protocol — a global project built on the LutinX blockchain — to the Italian Parliament. The EdVerso platform was designed to disrupt the educational technology space via decentralization. Data security issues appear in the headlines daily. Therefore, many hope blockchain technology will be the key to eliminating breaches, ransomware, and system hacks. Civati’s newsletter is all over the board with blockchain-related news, and that’s a good thing. Subscribers (currently more than 140,000) can find articles where this innovative technology is touching their lives in education, global food supply, social networks, the war in Ukraine, espionage, and more. However, be careful with this one since it’s too easy to fall down the rabbit hole with the breadth of information that Civati makes available. Article by Deanna Ritchie, Due About the Author Deanna Ritchie is a financial editor at Due. She has a degree in English Literature. She has written 1000+ articles on getting out of debt and mastering your finances. She has edited over 40,000 articles in her life. She has a passion for helping writers inspire others through their words. Deanna has also been an editor at Entrepreneur Magazine and ReadWrite. Updated on Jun 30, 2022, 3:47 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: valuewalk3 hr. 25 min. ago

Housing Affordability Challenges Strained 97% of U.S. Counties in Q2 2022

The housing affordability crisis is a mounting challenge that isn’t going away overnight. This, according to a recent report from ATTOM Data Solutions, is evident as factors like rising mortgage rates have exacerbated the challenge to record-level proportions. The organization released its second quarter 2022 U.S. Home Affordability Report on June 30. The report found that… The post Housing Affordability Challenges Strained 97% of U.S. Counties in Q2 2022 appeared first on RISMedia. The housing affordability crisis is a mounting challenge that isn’t going away overnight. This, according to a recent report from ATTOM Data Solutions, is evident as factors like rising mortgage rates have exacerbated the challenge to record-level proportions. The organization released its second quarter 2022 U.S. Home Affordability Report on June 30. The report found that median-priced single-family homes and condos were less affordable in the second quarter of 2022 compared to historical averages in 97% of counties across the nation with enough data to analyze—up from 69% during the same period last year. The report determined affordability for average wage earners by calculating the income needed to meet major monthly homeownership expenses, including mortgage, property taxes and insurance, on a median-priced single-family home. The report also shows that significant homeownership expenses are now consuming 31.5% of people’s monthly wages as the median price of a single-family home has hit a new high of $349,000, and 30-year mortgage rates have shot up above 5%. This marks the highest point since the second quarter of 2007, up from 26% in the first quarter of 2022 and 23.9% in the second quarter of last year. Significant expenses on median-priced single-family homes and condos around the U.S. now require more than 28% of the average $67,587 wage in the U.S. According to experts, both increases mark the largest jumps since at least 2000. Key highlights Homeownership is less affordable than historic averages in 97% of counties—up from 80% in Q1 2022. Median single-family home and condo prices are up at least 10% annually in two-thirds of the country. Price gains outpace wage growth in nearly 90% of markets. Four in 10 counties require annual wages of more than $75,000 to afford a typical home. Historic affordability nationwide has declined for the sixth quarter in a row to the worst level since the second quarter of 2007 near the end of the last housing-market boom. Only 3% of markets are more affordable than the historic average. The takeaway Despite coming off a roaring housing market in recent years, aspiring and current homeowners have been mired in a growing affordability gap as the cost of owning a home has surged. A major force remains home prices, which have continued to soar in 2022 with the upward pressure of persisting supply and demand imbalances. Climbing mortgage rates and continued economic headwinds have compounded the issue for buyers, according to ATTOM experts. “Extraordinarily low levels of homes for sale combined with strong demand have caused home prices to soar over the last few years,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “But homes remained relatively affordable due to historically low mortgage rates and rising wages. With interest rates almost doubling, homebuyers are faced with monthly mortgage payments that are between 40% and 50% higher than they were a year ago—payments that many prospective buyers simply can’t afford. “Worsening affordability appears to be having an impact on demand, which could lead to prices plateauing or even correcting modestly in some markets. Many potential buyers may elect to continue renting until market conditions improve. Others might adjust their sights and look for smaller properties or homes that are further away from major metro areas. And it’s possible that worsening affordability could accelerate the migratory trends that the COVID-19 pandemic started, as residents in high-cost, high-tax states who can now work from home look for less expensive places to live,” added Sharga. The post Housing Affordability Challenges Strained 97% of U.S. Counties in Q2 2022 appeared first on RISMedia......»»

Category: realestateSource: rismedia4 hr. 53 min. ago

These 46 pitch decks helped fintechs disrupting trading, investing, and banking raise millions in funding

Looking for examples of real fintech pitch decks? Check out pitch decks that Qolo, Lance, and other startups used to raise money from VCs. Check out these pitch decks for examples of fintech founders sold their vision.Yulia Reznikov/Getty Images Insider has been tracking the next wave of hot new startups that are blending finance and tech.  Check out these pitch decks to see how fintech founders sold their vision. See more stories on Insider's business page. Fintech funding has been on a tear.In 2021, fintech funding hit a record $132 billion globally, according to CB Insights, more than double 2020's mark.Insider has been tracking the next wave of hot new startups that are blending finance and tech. Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You'll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding. New twists on digital bankingZach Bruhnke, cofounder and CEO of HMBradleyHMBradleyConsumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from. The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model. "Our thesis going in was that we don't swipe our debit cards all that often, and we don't think the customer base that we're focusing on does either," Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. "A lot of our customer base uses credit cards on a daily basis."Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.Notably, the rate tiers are dependent on the percentage of savings, not the net amount. "We'll pay you more when you save more of what comes in," Bruhnke said. "We didn't want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us."Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series APersonal finance is only a text awayYinon Ravid, the chief executive and cofounder of Albert.AlbertThe COVID-19 pandemic has underscored the growing preference of mobile banking as customers get comfortable managing their finances online.The financial app Albert has seen a similar jump in activity. Currently counting more than six million members, deposits in Albert's savings offering doubled from the start of the pandemic in March 2020 to May of this year, from $350 million to $700 million, according to new numbers released by the company. Founded in 2015, Albert offers automated budgeting and savings tools alongside guided investment portfolios. It's looked to differentiate itself through personalized features, like the ability for customers to text human financial experts.Budgeting and saving features are free on Albert. But for more tailored financial advice, customers pay a subscription fee that's a pay-what-you-can model, between $4 and $14 a month. And Albert's now banking on a new tool to bring together its investing, savings, and budgeting tools.Fintech Albert used this 10-page pitch deck to raise a $100 million Series C from General Atlantic and CapitalG 'A bank for immigrants'Priyank Singh and Rohit Mittal are the cofounders of Stilt.StiltRohit Mittal remembers the difficulties he faced when he first arrived in the United States a decade ago as a master's student at Columbia University.As an immigrant from India, Mittal had no credit score in the US and had difficulty integrating into the financial system. Mittal even struggled to get approved to rent an apartment and couch-surfed until he found a roommate willing to offer him space in his apartment in the New York neighborhood Morningside Heights.That roommate was Priyank Singh, who would go on to become Mittal's cofounder when the two started Stilt, a financial-technology company designed to address the problems Mittal faced when he arrived in the US.Stilt, which calls itself "a bank for immigrants," does not require a social security number or credit history to access its offerings, including unsecured personal loans.Instead of relying on traditional metrics like a credit score, Stilt uses data such as education and employment to predict an individual's future income stability and cash flow before issuing a loan. Stilt has seen its loan volume grow by 500% in the past 12 months, and the startup has loaned to immigrants from 160 countries since its launch. Here are the 15 slides Stilt, which calls itself 'a bank for immigrants,' used to raise a $14 million Series AAn IRA for alternativesHenry Yoshida is the co-founder and CEO of retirement fintech startup Rocket Dollar.Rocket DollarFintech startup Rocket Dollar, which helps users invest their individual retirement account (IRA) dollars into alternative assets, just raised $8 million for its Series A round, the company announced on Thursday.Park West Asset Management led the round, with participation from investors including Hyphen Capital, which focuses on backing Asian American entrepreneurs, and crypto exchange Kraken's venture arm. Co-founded in 2018 by CEO Henry Yoshida, CTO Rick Dude, and VP of marketing Thomas Young, Rocket Dollar now has over $350 million in assets under management on its platform. Yoshida sold his first startup, a roboadvisor called Honest Dollar, to Goldman Sachs' investment management division for an estimated $20 million.Yoshida told Insider that while ultra-high net worth investors have been investing self-directed retirement account dollars into alternative assets like real estate, private equity, and cryptocurrency, average investors have not historically been able to access the same opportunities to invest IRA dollars in alternative assets through traditional platforms.Here's the 34-page pitch deck a fintech that helps users invest their retirement savings in crypto and real estate assets used to nab $8 millionA trading app for activismAntoine Argouges, CEO and founder of TulipshareTulipshareAn up-and-coming fintech is taking aim at some of the world's largest corporations by empowering retail investors to push for social and environmental change by pooling their shareholder rights.London-based Tulipshare lets individuals in the UK invest as little as one pound in publicly-traded company stocks. The upstart combines individuals' shareholder rights with other like-minded investors to advocate for environmental, social, and corporate governance change at firms like JPMorgan, Apple, and Amazon.The goal is to achieve a higher number of shares to maximize the number of votes that can be submitted at shareholder meetings. Already a regulated broker-dealer in the UK, Tulipshare recently applied for registration as a broker-dealer in the US. "If you ask your friends and family if they've ever voted on shareholder resolutions, the answer will probably be close to zero," CEO and founder Antoine Argouges told Insider. "I started Tulipshare to utilize shareholder rights to bring about positive corporate change that has an impact on people's lives and our planet — what's more powerful than money to change the system we live in?"Check out the 14-page pitch deck from Tulipshare, a trading app that lets users pool their shareholder votes for activism campaignsDigital tools for independent financial advisorsJason Wenk, founder and CEO of AltruistAltruistJason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he's running a company that is hoping to broaden access to financial advice for less-wealthy individuals. The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup's total funding to just under $67 million.Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an "all-in-one" platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry. Here's the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and InsightRethinking debt collection Jason Saltzman, founder and CEO of ReliefReliefFor lenders, debt collection is largely automated. But for people who owe money on their credit cards, it can be a confusing and stressful process.  Relief is looking to change that. Its app automates the credit-card debt collection process for users, negotiating with lenders and collectors to settle outstanding balances on their behalf. The fintech just launched and closed a $2 million seed round led by Collaborative Ventures. Relief's fundraising experience was a bit different to most. Its pitch deck, which it shared with one investor via Google Slides, went viral. It set out to raise a $1 million seed round, but ended up doubling that and giving some investors money back to make room for others.Check out a 15-page pitch deck that went viral and helped a credit-card debt collection startup land a $2 million seed roundHelping small banks lendTKCollateralEdgeFor large corporations with a track record of tapping the credit markets, taking out debt is a well-structured and clear process handled by the nation's biggest investment banks and teams of accountants. But smaller, middle-market companies — typically those with annual revenues ranging up to $1 billion — are typically served by regional and community banks that don't always have the capacity to adequately measure the risk of loans or price them competitively. Per the National Center for the Middle Market, 200,000 companies fall into this range, accounting for roughly 33% of US private sector GDP and employment.Dallas-based fintech CollateralEdge works with these banks — typically those with between $1 billion and $50 billion in assets — to help analyze and price slices of commercial and industrial loans that previously might have gone unserved by smaller lenders.On October 20th, CollateralEdge announced a $3.5 million seed round led by Dallas venture fund Perot Jain with participation from Kneeland Youngblood (a founder of the healthcare-focused private-equity firm Pharos Capital) and other individual investors.Here's the 10-page deck CollateralEdge, a fintech streamlining how small banks lend to businesses, used to raise a $3.5 million seed roundA new way to assess creditworthinessPinwheel founders Curtis Lee, Kurt Lin, and Anish Basu.PinwheelGrowing up, Kurt Lin never saw his father get frustrated. A "traditional, stoic figure," Lin said his father immigrated to the United States in the 1970s. Becoming part of the financial system proved even more difficult than assimilating into a new culture.Lin recalled visiting bank after bank with his father as a child, watching as his father's applications for a mortgage were denied due to his lack of credit history. "That was the first time in my life I really saw him crack," Lin told Insider. "The system doesn't work for a lot of people — including my dad," he added. Lin would find a solution to his father's problem years later while working with Anish Basu, and Curtis Lee on an automated health savings account. The trio realized the payroll data integrations they were working on could be the basis of a product that would help lenders work with consumers without strong credit histories."That's when the lightbulb hit," said Lin, Pinwheel's CEO.In 2018, Lin, Basu, and Lee founded Pinwheel, an application-programming interface that shares payroll data to help both fintechs and traditional lenders serve consumers with limited or poor credit, who have historically struggled to access financial products. Here's the 9-page deck that Pinwheel, a fintech helping lenders tap into payroll data to serve consumers with little to no credit, used to raise a $50 million Series BAn alternative auto lenderTricolorAn alternative auto lender that caters to thin- and no-credit Hispanic borrowers is planning a national expansion after scoring a $90 million investment from BlackRock-managed funds. Tricolor is a Dallas-based auto lender that is a community development financial institution. It uses a proprietary artificial-intelligence engine that decisions each customer based on more than 100 data points, such as proof of income. Half of Tricolor's customers have a FICO score, and less than 12% have scores above 650, yet the average customer has lived in the US for 15 years, according to the deck.A 2017 survey by the Federal Deposit Insurance Corporation found 31.5% of Hispanic households had no mainstream credit compared to 14.4% of white households. "For decades, the deck has been stacked against low income or credit invisible Hispanics in the United States when it comes to the purchase and financing of a used vehicle," Daniel Chu, founder and CEO of Tricolor, said in a statement announcing the raise.An auto lender that caters to underbanked Hispanics used this 25-page deck to raise $90 million from BlackRock investors A new way to access credit The TomoCredit teamTomoCreditKristy Kim knows first-hand the challenge of obtaining credit in the US without an established credit history. Kim, who came to the US from South Korea, couldn't initially get access to credit despite having a job in investment banking after graduating college. "I was in my early twenties, I had a good income, my job was in investment banking but I could not get approved for anything," Kim told Insider. "Many young professionals like me, we deserve an opportunity to be considered but just because we didn't have a Fico, we weren't given a chance to even apply," she added.Kim started TomoCredit in 2018 to help others like herself gain access to consumer credit. TomoCredit spent three years building an internal algorithm to underwrite customers based on cash flow, rather than a credit score.TomoCredit, a fintech that lends to thin- and no-credit borrowers, used this 17-page pitch deck to raise its $10 million Series AHelping streamline how debts are repaidMethod Financial cofounders Jose Bethancourt and Marco del Carmen.Method FinancialWhen Jose Bethancourt graduated from the University of Texas at Austin in May 2019, he faced the same question that confronts over 43 million Americans: How would he repay his student loans?The problem led Bethancourt on a nearly two-year journey that culminated in the creation of a startup aimed at making it easier for consumers to more seamlessly pay off all kinds of debt.  Initially, Bethancourt and fellow UT grad Marco del Carmen built GradJoy, an app that helped users better understand how to manage student loan repayment and other financial habits. GradJoy was accepted into Y Combinator in the summer of 2019. But the duo quickly realized the real benefit to users would be helping them move money to make payments instead of simply offering recommendations."When we started GradJoy, we thought, 'Oh, we'll just give advice — we don't think people are comfortable with us touching their student loans,' and then we realized that people were saying, 'Hey, just move the money — if you think I should pay extra, then I'll pay extra.' So that's kind of the movement that we've seen, just, everybody's more comfortable with fintechs doing what's best for them," Bethancourt told Insider. Here is the 11-slide pitch deck Method Financial, a Y Combinator-backed fintech making debt repayment easier, used to raise $2.5 million in pre-seed fundingQuantum computing made easyQC Ware CEO Matt Johnson.QC WareEven though banks and hedge funds are still several years out from adding quantum computing to their tech arsenals, that hasn't stopped Wall Street giants from investing time and money into the emerging technology class. And momentum for QC Ware, a startup looking to cut the time and resources it takes to use quantum computing, is accelerating. The fintech secured a $25 million Series B on September 29 co-led by Koch Disruptive Technologies and Covestro with participation from D.E. Shaw, Citi, and Samsung Ventures.QC Ware, founded in 2014, builds quantum algorithms for the likes of Goldman Sachs (which led the fintech's Series A), Airbus, and BMW Group. The algorithms, which are effectively code bases that include quantum processing elements, can run on any of the four main public-cloud providers.Quantum computing allows companies to do complex calculations faster than traditional computers by using a form of physics that runs on quantum bits as opposed to the traditional 1s and 0s that computers use. This is especially helpful in banking for risk analytics or algorithmic trading, where executing calculations milliseconds faster than the competition can give firms a leg up. Here's the 20-page deck QC Ware, a fintech making quantum computing more accessible, used to raised its $25 million Series BSimplifying quant modelsKirat Singh and Mark Higgins, Beacon's cofounders.BeaconA fintech that helps financial institutions use quantitative models to streamline their businesses and improve risk management is catching the attention, and capital, of some of the country's biggest investment managers.Beacon Platform, founded in 2014, is a fintech that builds applications and tools to help banks, asset managers, and trading firms quickly integrate quantitative models that can help with analyzing risk, ensuring compliance, and improving operational efficiency. The company raised its Series C on Wednesday, scoring a $56 million investment led by Warburg Pincus with support from Blackstone Innovations Investments, PIMCO, and Global Atlantic. Blackstone, PIMCO, and Global Atlantic are also users of Beacon's tech, as are the Commonwealth Bank of Australia and Shell New Energies, a division of Royal Dutch Shell, among others.The fintech provides a shortcut for firms looking to use quantitative modelling and data science across various aspects of their businesses, a process that can often take considerable resources if done solo.Here's the 20-page pitch deck Beacon, a fintech helping Wall Street better analyze risk and data, used to raise $56 million from Warburg Pincus, Blackstone, and PIMCOSussing out bad actorsFrom left to right: Cofounders CTO David Movshovitz, CEO Doron Hendler, and chief architect Adi DeGaniRevealSecurityAn encounter with an impersonation hacker led Doron Hendler to found RevealSecurity, a Tel Aviv-based cybersecurity startup that monitors for insider threats.Two years ago, a woman impersonating an insurance-agency representative called Hendler and convinced him that he made a mistake with his recent health insurance policy upgrade. She got him to share his login information for his insurer's website, even getting him to give the one-time passcode sent to his phone. Once the hacker got what she needed, she disconnected the call, prompting Hendler to call back. When no one picked up the phone, he realized he had been conned.He immediately called his insurance company to check on his account. Nothing seemed out of place to the representative. But Hendler, who was previously a vice president of a software company, suspected something intangible could have been collected, so he reset his credentials."The chief of information security, who was on the call, he asked me, 'So, how do you want me to identify you? You gave your credentials; you gave your ID; you gave the one time password. How the hell can I identify that it's not you?' And I told him, 'But I never behave like this,'" Hendler recalled of the conversation.RevealSecurity, a Tel Aviv-based cyber startup that tracks user behavior for abnormalities, used this 27-page deck to raise its Series AA new data feed for bond tradingMark Lennihan/APFor years, the only way investors could figure out the going price of a corporate bond was calling up a dealer on the phone. The rise of electronic trading has streamlined that process, but data can still be hard to come by sometimes. A startup founded by a former Goldman Sachs exec has big plans to change that. BondCliQ is a fintech that provides a data feed of pre-trade pricing quotes for the corporate bond market. Founded by Chris White, the creator of Goldman Sachs' defunct corporate-bond-trading system, BondCliQ strives to bring transparency to a market that has traditionally kept such data close to the vest. Banks, which typically serve as the dealers of corporate bonds, have historically kept pre-trade quotes hidden from other dealers to maintain a competitive advantage.But tech advancements and the rise of electronic marketplaces have shifted power dynamics into the hands of buy-side firms, like hedge funds and asset managers. The investors are now able to get a fuller picture of the market by aggregating price quotes directly from dealers or via vendors.Here's the 9-page pitch deck that BondCliQ, a fintech looking to bring more data and transparency to bond trading, used to raise its Series AFraud prevention for lenders and insurersFiordaliso/Getty ImagesOnboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.But preventing fraud is also a priority, and that's where Neuro-ID comes in. The startup analyzes what it calls "digital body language," or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It's built for banks, lenders, insurers, and e-commerce players."The train has left the station for digital transformation, but there's a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy," Neuro-ID CEO Jack Alton told Insider.Founded in 2014, the startup's pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless. In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.Here's the 11-slide pitch deck a startup that analyzes consumers' digital behavior to fight fraud used to raise a $7 million Series AAI-powered tools to spot phony online reviews FakespotMarketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.That's where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart."There are promotional reviews written by humans and bot-generated reviews written by robots or review farms," Fakespot founder and CEO Saoud Khalifah told Insider. "Our AI system has been built to detect both categories with very high accuracy."Fakespot's AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series AHelping fintechs manage dataProper Finance co-founders Travis Gibson (left) and Kyle MaloneyProper FinanceAs the flow of data becomes evermore crucial for fintechs, from the strappy startup to the established powerhouse, a thorny issue in the back office is becoming increasingly complex.Even though fintechs are known for their sleek front ends, the back end is often quite the opposite. Behind that streamlined interface can be a mosaic of different partner integrations — be it with banks, payments players and networks, or software vendors — with a channel of data running between them. Two people who know that better than the average are Kyle Maloney and Travis Gibson, two former employees of Marqeta, a fintech that provides other fintechs with payments processing and card issuance. "Take an established neobank for example. They'll likely have one or two card issuers, two to three bank partners, ACH processing for direct deposits and payouts, mobile check deposits, peer-to-peer payments, and lending," Gibson told Insider. Here's the 12-page pitch deck a startup helping fintechs manage their data used to score a $4.3 million seed from investors like Redpoint Ventures and Y CombinatorE-commerce focused business bankingMichael Rangel, cofounder and CEO, and Tyler McIntyre, cofounder and CTO of Novo.Kristelle Boulos PhotographyBusiness banking is a hot market in fintech. And it seems investors can't get enough.Novo, the digital banking fintech aimed at small e-commerce businesses, raised a $40.7 million Series A led by Valar Ventures in June. Since its launch in 2018, Novo has signed up 100,000 small businesses. Beyond bank accounts, it offers expense management, a corporate card, and integrates with e-commerce infrastructure players like Shopify, Stripe, and Wise.Founded in 2018, Novo was based in New York City, but has since moved its headquarters to Miami. Here's the 12-page pitch deck e-commerce banking startup Novo used to raise its $40 million Series AShopify for embedded financeProductfy CEO and founder, Duy VoProductfyProductfy is looking to break into embedded finance by becoming the Shopify of back-end banking services.Embedded finance — integrating banking services in non-financial settings — has taken hold in the e-commerce world. But Productfy is going after a different kind of customer in churches, universities, and nonprofits.The San Jose, Calif.-based upstart aims to help non-finance companies offer their own banking products. Productfy can help customers launch finance features in as little as a week and without additional engineering resources or background knowledge of banking compliance or legal requirements, Productfy founder and CEO Duy Vo told Insider. "You don't need an engineer to stand up Shopify, right? You can be someone who's just creating art and you can use Shopify to build your own online store," Vo said, adding that Productfy is looking to take that user experience and replicate it for banking services.Here's the 15-page pitch deck Productfy, a fintech looking to be the Shopify of embedded finance, used to nab a $16 million Series ADeploying algorithms and automation to small-business financingJustin Straight and Bernard Worthy, LoanWell co-foundersLoanWellBernard Worthy and Justin Straight, the founders of LoanWell, want to break down barriers to financing for small and medium-size businesses — and they've got algorithms and automation in their tech arsenals that they hope will do it.Worthy, the company's CEO, and Straight, its chief operating and financial officer, are powering community-focused lenders to fill a gap in the SMB financing world by boosting access to loans under $100,000. And the upstart is known for catching the attention, and dollars, of mission-driven investors. LoanWell closed a $3 million seed financing round in December led by Impact America Fund with participation from SoftBank's SB Opportunity Fund and Collab Capital.LoanWell automates the financing process — from underwriting and origination, to money movement and servicing — which shaves down an up-to-90-day process to 30 days or even same-day with some LoanWell lenders, Worthy said. SMBs rely on these loans to process quickly after two years of financial uncertainty. But the pandemic illustrated how time-consuming and expensive SMB financing can be, highlighted by efforts like the federal government's Paycheck Protection Program.Community banks, once the lifeline to capital for many local businesses, continue to shutter. And demands for smaller loan amounts remain largely unmet. More than half of business-loan applicants sought $100,000 or less, according to 2018 data from the Federal Reserve. But the average small-business bank loan was closer to six times that amount, according to the latest data from a now discontinued Federal Reserve survey.Here's the 14-page pitch deck LoanWell used to raise $3 million from investors like SoftBank.Branded cards for SMBsJennifer Glaspie-Lundstrom is the cofounder and CEO of Tandym.TandymJennifer Glaspie-Lundstrom is no stranger to the private-label credit-card business. As a former Capital One exec, she worked in both the card giant's co-brand partnerships division and its tech organization during her seven years at the company.Now, Glaspie-Lundstrom is hoping to use that experience to innovate a sector that was initially created in malls decades ago.Glaspie-Lundstrom is the cofounder and CEO of Tandym, which offers private-label digital credit cards to merchants. Store and private-label credit cards aren't a new concept, but Tandym is targeting small- and medium-sized merchants with less than $1 billion in annual revenue. Glaspie-Lundstrom said that group often struggles to offer private-label credit due to the expense of working with legacy players."What you have is this example of a very valuable product type that merchants love and their customers love, but a huge, untapped market that has heretofore been unserved, and so that's what we're doing with Tandym," Glaspi-Lundstrom told Insider.A former Capital One exec used this deck to raise $60 million for a startup helping SMBs launch their own branded credit cardsCatering to 'micro businesses'Stefanie Sample is the founder and CEO of FundidFundidStartups aiming to simplify the often-complex world of corporate cards have boomed in recent years.Business-finance management startup Brex was last valued at $12.3 billion after raising $300 million last year. Startup card provider Ramp announced an $8.1 billion valuation in March after growing its revenue nearly 10x in 2021. Divvy, a small business card provider, was acquired by Bill.com in May 2021 for approximately $2.5 billion.But despite how hot the market has gotten, Stefanie Sample said she ended up working in the space by accident. Sample is the founder and CEO of Fundid, a new fintech that provides credit and lending products to small businesses.This May, Fundid announced a $3.25 million seed round led by Nevcaut Ventures. Additional investors include the Artemis Fund and Builders and Backers. The funding announcement capped off the company's first year: Sample introduced the Fundid concept in April 2021, launched its website in May, and began raising capital in August."I never meant to do Fundid," Sample told Insider. "I never meant to do something that was venture-backed."Read the 12-page deck used by Fundid, a fintech offering credit and lending tools for 'micro businesses'Embedded payments for SMBsThe Highnote teamHighnoteBranded cards have long been a way for merchants with the appropriate bank relationships to create additional revenue and build customer loyalty. The rise of embedded payments, or the ability to shop and pay in a seamless experience within a single app, has broadened the number of companies looking to launch branded cards.Highnote is a startup that helps small to mid-sized merchants roll out their own debit and pre-paid digital cards. The fintech emerged from stealth on Tuesday to announce it raised $54 million in seed and Series A funding.Here's the 12-page deck Highnote, a startup helping SMBs embed payments, used to raise $54 million in seed and Series A fundingSpeeding up loans for government contractors OppZo cofounders Warren Reed and Randy GarrettOppZoThe massive market for federal government contracts approached $700 billion in 2020, and it's likely to grow as spending accelerates amid an ongoing push for investment in the nation's infrastructure. Many of those dollars flow to small-and-medium sized businesses, even though larger corporations are awarded the bulk of contracts by volume. Of the roughly $680 billion in federal contracts awarded in 2020, roughly a quarter, according to federal guidelines, or some $146 billion that year, went to smaller businesses.But peeking under the hood of the procurement process, the cofounders of OppZo — Randy Garrett and Warren Reed — saw an opportunity to streamline how smaller-sized businesses can leverage those contracts to tap in to capital.  Securing a deal is "a government contractor's best day and their worst day," as Garrett, OppZo's president, likes to put it."At that point they need to pay vendors and hire folks to start the contract. And they may not get their first contract payment from the government for as long as 120 days," Reed, the startup's CEO,  told Insider. Check out the 12-page pitch deck OppZo, a fintech that has figured out how to speed up loans to small government contractors, used to raise $260 million in equity and debtHelping small businesses manage their taxesComplYant's founder Shiloh Jackson wants to help people be present in their bookkeeping.ComplYantAfter 14 years in tax accounting, Shiloh Johnson had formed a core philosophy around corporate accounting: everyone deserves to understand their business's money and business owners need to be present in their bookkeeping process.She wanted to help small businesses understand "this is why you need to do what you're doing and why you have to change the way you think about tax and be present in your bookkeeping process," she told Insider. The Los Angeles native wanted small businesses to not only understand business tax no matter their size but also to find the tools they needed to prepare their taxes in one spot. So Johnson developed a software platform that provides just that.The 13-page pitch deck ComplYant used to nab $4 million that details the tax startup's plan to be Turbotax, Quickbooks, and Xero rolled into one for small business ownersAutomating accounting ops for SMBsDecimal CEO Matt Tait.DecimalSmall- and medium-sized businesses can rely on any number of payroll, expense management, bill pay, and corporate-card startups promising to automate parts of their financial workflow. Smaller firms have adopted this corporate-financial software en masse, boosting growth throughout the pandemic for relatively new entrants like Ramp and massive, industry stalwarts like Intuit. But it's no easy task to connect all of those tools into one, seamless process. And while accounting operations might be far from where many startup founders want to focus their time, having efficient back-end finances does mean time — and capital — freed up to spend elsewhere. For Decimal CEO Matt Tait, there's ample opportunity in "the boring stuff you have to do to survive as a company," he told Insider. Launched in 2020, Decimal provides a back-end tech layer that small- and medium-sized businesses can use to integrate their accounting and business-management software tools in one place.On Wednesday, Decimal announced a $9 million seed fundraising round led by Minneapolis-based Arthur Ventures, alongside Service Providers Capital and other angel investors. See the 13-page pitch deck for Decimal, a startup automating accounting ops for small businessesInvoice financing for SMBsStacey Abrams and Lara Hodgson, Now co-foundersNowAbout a decade ago, politician Stacey Abrams and entrepreneur Lara Hodgson were forced to fold their startup because of a kink in the supply chain — but not in the traditional sense.Nourish, which made spill-proof bottled water for children, had grown quickly from selling to small retailers to national ones. And while that may sound like a feather in the small business' cap, there was a hang-up."It was taking longer and longer to get paid, and as you can imagine, you deliver the product and then you wait and you wait, but meanwhile you have to pay your employees and you have to pay your vendors," Hodgson told Insider. "Waiting to get paid was constraining our ability to grow."While it's not unusual for small businesses to grapple with working capital issues, the dust was still settling from the Great Recession. Abrams and Hodgson couldn't secure a line of credit or use financing tools like factoring to solve their problem. The two entrepreneurs were forced to close Nourish in 2012, but along the way they recognized a disconnect in the system.  "Why are we the ones borrowing money, when in fact we're the lender here because every time you send an invoice to a customer, you've essentially extended a free loan to that customer by letting them pay later," Hodgson said. "And the only reason why we were going to need to possibly borrow money was because we had just given ours away for free to Whole Foods," she added.Check out the 7-page deck that Now, Stacey Abrams' fintech that wants to help small businesses 'grow fearlessly', used to raise $29 millionCheckout made easyRyan Breslow.Ryan BreslowAmazon has long dominated e-commerce with its one-click checkout flows, offering easier ways for consumers to shop online than its small-business competitors.Bolt gives small merchants tools to offer the same easy checkouts so they can compete with the likes of Amazon.The startup raised its $393 million Series D to continue adding its one-click checkout feature to merchants' own websites in October.Bolt markets to merchants themselves. But a big part of Bolt's pitch is its growing network of consumers — currently over 5.6 million — that use its features across multiple Bolt merchant customers. Roughly 5% of Bolt's transactions were network-driven in May, meaning users that signed up for a Bolt account on another retailer's website used it elsewhere. The network effects were even more pronounced in verticals like furniture, where 49% of transactions were driven by the Bolt network."The network effect is now unleashed with Bolt in full fury, and that triggered the raise," Bolt's founder and CEO Ryan Breslow told Insider.Here's the 12-page deck that one-click checkout Bolt used to outline its network of 5.6 million consumers and raise its Series DPayments infrastructure for fintechsQolo CEO and co-founder Patricia MontesiQoloThree years ago, Patricia Montesi realized there was a disconnect in the payments world. "A lot of new economy companies or fintech companies were looking to mesh up a lot of payment modalities that they weren't able to," Montesi, CEO and co-founder of Qolo, told Insider.Integrating various payment capabilities often meant tapping several different providers that had specializations in one product or service, she added, like debit card issuance or cross-border payments. "The way people were getting around that was that they were creating this spider web of fintech," she said, adding that "at the end of it all, they had this mess of suppliers and integrations and bank accounts."The 20-year payments veteran rounded up a group of three other co-founders — who together had more than a century of combined industry experience — to start Qolo, a business-to-business fintech that sought out to bundle back-end payment rails for other fintechs.Here's the 11-slide pitch deck a startup that provides payments infrastructure for other fintechs used to raise a $15 million Series ABetter use of payroll dataAtomic's Head of Markets, Lindsay DavisAtomicEmployees at companies large and small know the importance — and limitations — of how firms manage their payrolls. A new crop of startups are building the API pipes that connect companies and their employees to offer a greater level of visibility and flexibility when it comes to payroll data and employee verification. On Thursday, one of those names, Atomic, announced a $40 million Series B fundraising round co-led by Mercato Partners and Greylock, alongside Core Innovation Capital, Portage, and ATX Capital. The round follows Atomic's Series A round announced in October, when the startup raised a $22 million Series A from investors including Core Innovation Capital, Portage, and Greylock.Payroll startup Atomic just raised a $40 million Series B. Here's an internal deck detailing the fintech's approach to the red-hot payments space.Saving on vendor invoicesHoward Katzenberg, Glean's CEO and cofounderGleanWhen it comes to high-flying tech startups, headlines and investors typically tend to focus on industry "disruption" and the total addressable market a company is hoping to reach. Expense cutting as a way to boost growth typically isn't part of the conversation early on, and finance teams are viewed as cost centers relative to sales teams. But one fast-growing area of business payments has turned its focus to managing those costs. Startups like Ramp and established names like Bill.com have made their name offering automated expense-management systems. Now, one new fintech competitor, Glean, is looking to take that further by offering both automated payment services and tailored line-item accounts-payable insights driven by machine-learning models. Glean's CFO and founder, Howard Katzenberg, told Insider that the genesis of Glean was driven by his own personal experience managing the finance teams of startups, including mortgage lender Better.com, which Katzenberg left in 2019, and online small-business lender OnDeck. "As a CFO of high-growth companies, I spent a lot of time focused on revenue and I had amazing dashboards in real time where I could see what is going on top of the funnel, what's going on with conversion rates, what's going on in terms of pricing and attrition," Katzenberg told Insider. See the 15-slide pitch deck Glean, a startup using machine learning to find savings in vendor invoices, used to raise $10.8 million in seed fundingReal-estate management made easyAgora founders Noam Kahan, CTO, Bar Mor, CEO, and Lior Dolinski, CPOAgoraFor alternative asset managers of any type, the operations underpinning sales and investor communications are a crucial but often overlooked part of the business. Fund managers love to make bets on markets, not coordinate hundreds of wire transfers to clients each quarter or organize customer-relationship-management databases.Within the $10.6 trillion global market for professionally managed real-estate investing, that's where Tel Aviv and New York-based startup Agora hopes to make its mark.Founded in 2019, Agora offers a set of back-office, investor relations, and sales software tools that real-estate investment managers can plug into their workflows. On Wednesday, Agora announced a $9 million seed round, led by Israel-based venture firm Aleph, with participation from River Park Ventures and Maccabee Ventures. The funding comes on the heels of an October 2020 pre-seed fund raise worth $890,000, in which Maccabee also participated.Here's the 15-slide pitch deck that Agora, a startup helping real-estate investors manage communications and sales with their clients, used to raise a $9 million seed roundAccess to commercial real-estate investing LEX Markets cofounders and co-CEOs Drew Sterrett and Jesse Daugherty.LEX MarketsDrew Sterrett was structuring real-estate deals while working in private equity when he realized the inefficiencies that existed in the market. Only high-net worth individuals or accredited investors could participate in commercial real-estate deals. If they ever wanted to leave a partnership or sell their stake in a property, it was difficult to find another investor to replace them. Owners also struggled to sell minority stakes in their properties and didn't have many good options to recapitalize an asset if necessary.In short, the market had a high barrier to entry despite the fact it didn't always have enough participants to get deals done quickly. "Most investors don't have access to high-quality commercial real-estate investments. How do we have the oldest and largest asset class in the world and one of the largest wealth creators with no public and liquid market?" Sterrett told Insider. "It sort of seems like a no-brainer, and that this should have existed 50 or 60 years ago."This 15-page pitch deck helped LEX Markets, a startup making investing in commercial real estate more accessible, raise $15 millionInsurance goes digitalJamie Hale, CEO and cofounder of LadderLadderFintechs looking to transform how insurance policies are underwritten, issued, and experienced by customers have grown as new technology driven by digital trends and artificial intelligence shape the market. And while verticals like auto, homeowner's, and renter's insurance have seen their fair share of innovation from forward-thinking fintechs, one company has taken on the massive life-insurance market. Founded in 2017, Ladder uses a tech-driven approach to offer life insurance with a digital, end-to-end service that it says is more flexible, faster, and cost-effective than incumbent players.Life, annuity, and accident and health insurance within the US comprise a big chunk of the broader market. In 2020, premiums written on those policies totaled some $767 billion, compared to $144 billion for auto policies and $97 billion for homeowner's insurance.Here's the 12-page deck that Ladder, a startup disrupting the 'crown jewel' of the insurance market, used to nab $100 millionData science for commercial insuranceTanner Hackett, founder and CEO of CounterpartCounterpartThere's been no shortage of funds flowing into insurance-technology companies over the past few years. Private-market funding to insurtechs soared to $15.4 billion in 2021, a 90% increase compared to 2020. Some of the most well-known consumer insurtech names — from Oscar (which focuses on health insurance) to Metromile (which focuses on auto) — launched on the public markets last year, only to fall over time or be acquired as investors questioned the sustainability of their business models. In the commercial arena, however, the head of one insurtech company thinks there is still room to grow — especially for those catering to small businesses operating in an entirely new, pandemic-defined environment. "The bigger opportunity is in commercial lines," Tanner Hackett, the CEO of management liability insurer Counterpart, told Insider."Everywhere I poke, I'm like, 'Oh my goodness, we're still in 1.0, and all the other businesses I've built were on version three.' Insurance is still in 1.0, still managing from spreadsheets and PDFs," added Hackett, who also previously co-founded Button, which focuses on mobile marketing. See the 8-page pitch deck Counterpart, a startup disrupting commercial insurance with data science, used to raise a $30 million Series BSmarter insurance for multifamily propertiesItai Ben-Zaken, cofounder and CEO of Honeycomb.HoneycombA veteran of the online-insurance world is looking to revolutionize the way the industry prices risk for commercial properties with the help of artificial intelligence.Insurance companies typically send inspectors to properties before issuing policies to better understand how the building is maintained and identify potential risks or issues with it. It's a process that can be time-consuming, expensive, and inefficient, making it hard to justify for smaller commercial properties, like apartment and condo buildings.Insurtech Honeycomb is looking to fix that by using AI to analyze a combination of third-party data and photos submitted by customers through the startup's app to quickly identify any potential risks at a property and more accurately price policies."That whole physical inspection thing had really good things in it, but it wasn't really something that is scalable and, it's also expensive," Itai Ben-Zaken, Honeycomb's cofounder and CEO, told Insider. "The best way to see a property right now is Google street view. Google street view is usually two years old."Here's the 10-page Series A pitch deck used by Honeycomb, a startup that wants to revolutionize the $26 billion market for multifamily property insuranceHelping freelancers with their taxesJaideep Singh is the CEO and co-founder of FlyFin, an AI-driven tax preparation software program for freelancers.FlyFinSome people, particularly those with families or freelancing businesses, spend days searching for receipts for tax season, making tax preparation a time consuming and, at times, taxing experience. That's why in 2020 Jaideep Singh founded FlyFin, an artificial-intelligence tax preparation program for freelancers that helps people, as he puts it, "fly through their finances." FlyFin is set up to connect to a person's bank accounts, allowing the AI program to help users monitor for certain expenses that can be claimed on their taxes like business expenditures, the interest on mortgages, property taxes, or whatever else that might apply. "For most individuals, people have expenses distributed over multiple financial institutions. So we built an AI platform that is able to look at expenses, understand the individual, understand your profession, understand the freelance population at large, and start the categorization," Singh told Insider.Check out the 7-page pitch deck a startup helping freelancers manage their taxes used to nab $8 million in fundingDigital banking for freelancersJGalione/Getty ImagesLance is a new digital bank hoping to simplify the life of those workers by offering what it calls an "active" approach to business banking. "We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it," Lance cofounder and CEO Oona Rokyta told Insider. Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that's connected to automated tax withholdings.In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.Here's the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including BarclaysSoftware for managing freelancersWorksome cofounder and CEO Morten Petersen.WorksomeThe way people work has fundamentally changed over the past year, with more flexibility and many workers opting to freelance to maintain their work-from-home lifestyles.But managing a freelance or contractor workforce is often an administrative headache for employers. Worksome is a startup looking to eliminate all the extra work required for employers to adapt to more flexible working norms.Worksome started as a freelancer marketplace automating the process of matching qualified workers with the right jobs. But the team ultimately pivoted to a full suite of workforce management software, automating administrative burdens required to hire, pay, and account for contract workers.In May, Worksome closed a $13 million Series A backed by European angel investor Tommy Ahlers and Danish firm Lind & Risør.Here's the 21-slide pitch deck used by a startup that helps firms like Carlsberg and Deloitte manage freelancersPayments and operations support HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon.HoneyBookWhile countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup's startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company's fundraising total to $227 million to date.Here's the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger GlobalPay-as-you-go compliance for banks, fintechs, and crypto startupsNeepa Patel, Themis' founder and CEOThemisWhen Themis founder and CEO Neepa Patel set out to build a new compliance tool for banks, fintech startups, and crypto companies, she tapped into her own experience managing risk at some of the nation's biggest financial firms. Having worked as a bank regulator at the Office of the Comptroller of the Currency and in compliance at Morgan Stanley, Deutsche Bank, and the enterprise blockchain company R3, Patel was well-placed to assess the shortcomings in financial compliance software. But Patel, who left the corporate world to begin work on Themis in 2020, drew on more than just her own experience and frustrations to build the startup."It's not just me building a tool based on my personal pain points. I reached out to regulators. I reached out to bank compliance officers and members in the fintech community just to make sure that we're building it exactly how they do their work," Patel told Insider. "That was the biggest problem: No one built a tool that was reflective of how people do their work."Check out the 9-page pitch deck Themis, which offers pay-as-you-go compliance for banks, fintechs, and crypto startups, used to raise $9 million in seed fundingConnecting startups and investorsHum Capital cofounder and CEO Blair SilverbergHum CapitalBlair Silverberg is no stranger to fundraising.For six years, Silverberg was a venture capitalist at Draper Fisher Jurvetson and Private Credit Investments making bets on startups."I was meeting with thousands of founders in person each year, watching them one at a time go through this friction where they're meeting a ton of investors, and the investors are all asking the same questions," Silverberg told Insider. He switched gears about three years ago, moving to the opposite side of the metaphorical table, to start Hum Capital, which uses artificial intelligence to match investors with startups looking to fundraise.On August 31, the New York-based fintech announced its $9 million Series A. The round was led by Future Ventures with participation from Webb Investment Network, Wavemaker Partners, and Partech. This 11-page pitch deck helped Hum Capital, a fintech using AI to match investors with startups, raise a $9 million Series A.Helping LatAm startups get up to speedKamino cofounders Gut Fragoso, Rodrigo Perenha, Benjamin Gleason, and Gonzalo ParejoKaminoThere's more venture capital flowing into Latin America than ever before, but getting the funds in founders' hands is not exactly a simple process.In 2021, investors funneled $15.3 billion into Latin American companies, more than tripling the previous record of $4.9 billion in 2019. Fintech and e-commerce sectors drove funding, accounting for 39% and 25% of total funding, respectively.  However, for many startup founders in the region who have successfully sold their ideas and gotten investors on board, there's a patchwork of corporate structuring that's needed to access the funds, according to Benjamin Gleason, who was the chief financial officer at Groupon LatAm prior to cofounding Brazil-based fintech Kamino.It's a process Gleason and his three fellow Kamino cofounders have been through before as entrepreneurs and startup execs themselves. Most often, startups have to set up offshore financial accounts outside of Brazil, which "entails creating a Cayman [Islands] holding company, a Delaware LLC, and then connecting it to a local entity here and also opening US bank accounts for the Cayman entity, which is not trivial from a KYC perspective," said Gleason, who founded open-banking fintech Guiabolso in Sao Paulo. His partner, Gonzalo Parejo, experienced the same toils when he founded insurtech Bidu."Pretty much any international investor will usually ask for that," Gleason said, adding that investors typically cite liability issues."It's just a massive amount of bureaucracy, complexity, a lot of time from the founders. All of this just to get the money from the investor that wants to give them the money," he added.Here's the 8-page pitch deck Kamino, a fintech helping LatAm startups with everything from financing to corporate credit cards, used to raise a $6.1M pre-seed roundThe back-end tech for beautyDanielle Cohen-Shohet, CEO and founder of GlossGeniusGlossGeniusDanielle Cohen-Shohet might have started as a Goldman Sachs investment analyst, but at her core she was always a coder.After about three years at Goldman Sachs, Cohen-Shohet left the world of traditional finance to code her way into starting her own company in 2016. "There was a period of time where I did nothing, but eat, sleep, and code for a few weeks," Cohen-Shohet told Insider. Her technical edge and knowledge of the point-of-sale payment space led her to launch a software company focused on providing behind-the-scenes tech for beauty and wellness small businesses.Cohen-Shohet launched GlossGenius in 2017 to provide payments tech for hair stylists, nail technicians, blow-out bars, and other small businesses in the space.Here's the 11-page deck GlossGenius, a startup that provides back-end tech for the beauty industry, used to raise $16 millionRead the original article on Business Insider.....»»

Category: topSource: businessinsider4 hr. 54 min. ago

How Netflix, Hollywood"s most innovative disruptor, is facing disruption with layoffs, streaming competition, and subscriber loss

Since Netflix began making original shows in 2013, the streaming giant has upended show business with its ambitious innovation. Now it's being disrupted by competitors like Disney+, has lost subscribers, and is making layoffs. Netflix.SOPA Images/Getty Images. Netflix has been disrupting the business of Hollywood since the streamer started making original shows in 2013. But now Netflix is being disrupted by increased competition, a stock price plunge, and subscriber loss.  The streamer has reined in spending and laid off hundreds of employees across divisions. Netflix, the disruptive streaming company whose innovative strategy and meteoric growth remade the entertainment industry, is facing some challenges of its own. After it lost subscribers for the first time ever earlier in 2022, the company's stock price tumbled. Though Longtime Netflix bears like Wedbush analyst Michael Pachter were somewhat vindicated by this development, its impact has rippled through the company. Layoffs hit employees through the spring — first, at Netflix fan site Tudum, then in two additional rounds that affected hundreds of employees and full-time contractors.With Disney reporting stronger results, including subscriber growth in its first quarter, Netflix has found itself on the back foot — and its troubles have sent shock waves through Hollywood's creative community. Writers, producers, agents, and more stakeholders spoke to Insider about concerns that the company might reduce its creative ambitions, production budgets, and content spend along with its workforce.Read more about Hollywood insiders fears that Netflix's golden creative age is over after explosive growth created 'a quality control issue'SUBHEDBut Netflix moved quickly to reset the perception that its dominant position in Hollywood was at risk. In addition to announcing plans for an ad-supported tier, set to launch later in 2022, the company also began work to develop live streaming capabilities. Read more about who Netflix might hire to run its advertising businessNetflix even made a play for the US rights to Formula 1 racing, the streamer's first foray into live sports (Disney's ESPN eventually won the bid).In May, Netflix launched one of its most ambitious live event yet, a massive comedy festival that featured performers from Dave Chappelle to Amy Schumer in venues across Los Angeles — it was a massive logistical undertaking that served to promote the Netflix brand and also highlight the streamer as a supportive creative home for top comedians, even controversial ones. Read more about how Netflix staged its massive 11-day comedy festival with more than 300 starsThe company also published a new update to its famous culture memo, affirming its commitment to both representation anD artists' freedom of expression — principles that could occasionally come into conflict, according to one expert. "Sometimes content can harm individuals and communities," said Y-Vonne Hutchinson, cofounder and CEO of ReadySet, a boutique consulting firm focused on diversity, equity, and inclusion.Read more about how Netflix's overhauled culture memo could create conflict at the companyAs competition for streaming subscribers has intensified, Netflix has also broadened its appetite when it comes to new shows. Insider reviewed internal Hollywood agency documents that revealed some series on the streamer's 2022 wishlist: a female "Jack Ryan," its own version of "New Girl," and an "American Idol"-style reality competition.Read more about what Netflix is looking for in its next series, according to leaked agency documentsAt Netflix, disruption starts with its contentIt was just a decade ago that Netflix released its first original series, Norwegian mob drama "Lilyhammer," but in that time the streamer has challenged the entertainment industry with its global approach to making, marketing, and distributing content.Netflix, which started as a DVD-by-mail business, is now the global leader in subscription streaming entertainment, ending 2021 with 222 million paid members. The company's success in streaming has pushed legacy media businesses including Disney, Warner Bros. Discovery, and NBCUniversal to pursue direct-to-consumer strategies of their own. And Netflix hasn't stopped there, in recent years expanding its domain to include publishing, live events, gaming, and other adjacent businesses. Read more about how Netflix's video-game strategy is starting to take shapeWith its headquarters in Los Gatos, California, Netflix has always been product- and data-driven. This has kept it steps ahead of the rest of Hollywood when it comes to creating consumer-facing experiences. For example, after years of offering almost no data about its viewership, Netflix unveiled a list of the platform's most popular shows and movies in the US and around the world. In 2021, Netflix went a step further and introduced a Top 10 website to share information about its most-viewed titles. Though what's offered is only a piece of the full picture about how people consume content on the platform, the site unveils more data than any other streamer provides. Read more about why new viewership data gives Netflix an advantage over Disney+ and other players in the streaming wars How Netflix first disrupted the TV screen and moved into merch and moreWhen Netflix first arrived in Hollywood, its rivals valued it as a platform for their long-forgotten back catalog shows and movies. The checks Netflix wrote for library titles in those early days helped prop up revenue at the studios. But soon it became clear that the company's appetite for content would encompass more than just licensed programming. The streamer launched original programming with a focus on prestige projects from high-profile creatives — series like "House of Cards" and "Orange Is the New Black" came to define its early slate of originals. But over the years, Netflix has systematically moved to conquer each major genre, from documentaries to standup specials to reality TV to YA programming. Netflix's first reality show launched in 2017 — "Ultimate Beastmaster" was a global competition series in the vein of "American Ninja Warrior" that put contestants on complicated, flashy obstacle courses shaped like a literal beast. Netflix has since minted reality hits from "Love Is Blind" to "Selling Sunset."Check out the pitch deck that sold Netflix on "Ultimate Beastmaster," the streamer's first reality showThe company also made a big investment in original programming for kids, in a bid to create loyal viewers and potentially reduce subscriber churn. But like its competitor Disney, Netflix is increasingly leaning into existing IP for its kids shows. "A real hit in the kids space needs a lot of years to build an audience. It needs like 5, 6, 7 seasons to really get its sea legs and then be able to sell backpacks at Walmart," said Cyma Zarghami, the former president of Nickelodeon who now runs kids-focused media company MiMo Studios. Read more about how Netflix and other streamers are fighting to find the next 'CoComelon' amid a streaming war for kids contentToday, the streamer makes and distributes hundreds of original titles each year, minting global hits out of shows including "Stranger Things" and "Bridgerton" and movies from "Red Notice" to "Don't Look Up." Netflix has also upended the notion that international programming doesn't resonate with US audiences, turning South Korean thriller "Squid Game" and Spanish drama "Money Heist" into two of its most-watched shows. Read more about the reasons 'Squid Game' became a global phenomenon, according to a Netflix marketing execNetflix has been able to ramp up international production because it kept tabs on global content trends for years. After slowly moving into a few markets outside the US, the company in 2016 launched a large-scale expansion, making its service available in 130 countries all at once. It now operates in every country except China, North Korea, Russia, and Syria.Read more about how Netflix's 'Squid Game' is part of a robust international TV strategy that's far ahead of rivals, especially in South KoreaIn September 2020, Netflix — which is led by co-CEOs Reed Hastings and Ted Sarandos — promoted longtime entertainment executive Bela Bajaria to the role of global head of TV. She had previously overseen the company's local-language originals and her promotion, which led to the departure of Netflix veteran Cindy Holland, signaled that the company would prioritize international programming going forward. Now, all of Netflix's rivals — including Disney+ and HBO Max — are increasing their global programming efforts. View our full interactive chart of Netflix's top leaders Netflix is expanding into publishing, events, and other consumer businessesAs Netflix's constellation of original IP grows, the company has been looking for new ways to boost fandom around the world, including with large-scale live events like Tudum, which streamed for fans globally in September 2021, and the more selective The Queen's Ball: A Bridgerton Experience, which is touring the US and Canada. Read more about how 'Bridgerton' live events boost a broader strategy to retain subscribers and build fandomsNetflix's first attempt at adapting its IP for the physical world was through merchandise. It now sells "Stranger Things" cassette players and "Squid Game" track suits at Walmart in just another example of how it's looking to create touchpoints with fans. Read more about Netflix's partnership with Walmart to sell 'Squid Game,' 'Stranger Things,' and 'Ada Twist' merchNetflix also has moved aggressively into publishing, hiring former Condé Nast employees to create fandom site Tudum, which releases news about upcoming Netflix titles and interviews with stars. Read more about how Netflix hired Condé Nast and Time Inc. journalists to build a 'fandom engine' to market its showsWith Tudum, Netflix is now competing directly with fan sites like Whats-on-Netflix.com, which obsessively tracks the comings and goings of programming on the service. The streamer also is going up against children's publications like Highlights with Netflix Jr. magazine, which it will ship to the homes of viewers with young children. And it's tackling Hollywood trade publications like Variety and The Hollywood Reporter with Queue, which is edited by Vanity Fair alum Krista Smith and pushes awards contenders with photos and profiles. Read more about the 'Netflix stan' who runs the website What's on NetflixAwards is an area where Netflix has made a particularly sizable investment. Though its studio rivals also spend lavishly to give their films and TV shows the best shot at nabbing Oscars and Emmys, Netflix has gone a step further. It owns highly visible billboards around Los Angeles and hosts premieres at the theaters it purchased there and in New York.That Apple TV+ beat Netflix to become the first streamer to nab the best picture Oscar — with its 2022 win for "CODA" —  is a signal of how much Netflix is still seen as an interloper by many in Hollywood.  Read more about how Netflix built Hollywood's noisiest awards operation in its quest for the best picture OscarRead the original article on Business Insider.....»»

Category: topSource: businessinsiderJun 29th, 2022

Tecsys Reports Financial Results for the Fourth Quarter and Full Year Fiscal 2022

SaaS revenue up 41% for the full year  MONTREAL, June 29, 2022 /CNW/ -- Tecsys Inc. (TSX:TCS), an industry-leading supply chain management SaaS company, today announced its results for the fourth quarter and full year of fiscal year 2022, ended April 30, 2022. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS). Fourth Quarter Highlights: SaaS revenue increased by 40% to $7.7 million, up from $5.5 million in Q4 2021. Annual Recurring Revenue (ARRi) at April 30, 2022 was up 20% to $62.7 million compared to $52.5 million at April 30, 2021. SaaS subscription bookingsi (measured on an ARRi basis) were $4.5 million, up 29% compared to $3.5 million in the fourth quarter of 2021. Professional services revenue was up 6% to $12.9 million compared to $12.2 million in Q4 2021. Total revenue was $34.3 million, 6% higher than $32.4 million reported for Q4 2021. Gross margin was 44% compared to 49% in the prior year quarter. Total gross profit decreased to $15.1 million, down 4% from $15.7 million in Q4 2021. Operating expenses increased to $13.8 million, higher by $0.7 million or 6% compared to $13.1 million in Q4 fiscal 2021, with continued investment in sales and marketing. Profit from operations was $1.3 million, down 50% from $2.6 million in Q4 2021. Net profit was $2.6 million or $0.17 per share on a fully diluted basis compared to a net profit of $2.0 million or $0.14 per share for the same period in fiscal 2021.  Net Profit was positively impacted in the three and twelve months ended April 30, 2022 as a result of the recognition of approximately $1.9 million net deferred tax assets and the recognition of approximately $0.6 million gain on remeasurement of lease liability. Adjusted EBITDAii was $1.7 million, down 56% compared to $3.9 million reported in Q4 2021. A weaker USD to CAD exchange rate negatively impacted revenue and Profit from operations and Adjusted AEBITDA by approximately $0.7 million compared to the same quarter last year. "Our solid fourth quarter results cap off a compelling year of top-line growth. SaaS bookings drove our double digit Annual Recurring Revenue growth for the year and resulted in SaaS revenue growth of 47% on a constant currency basis.  We are proud of our performance as the pandemic headwinds begin to subside and the potential emergence of tailwinds position us for continued growth well into the future." said Peter Brereton, president and Chief Executive Officer of Tecsys Inc. "Healthcare continues to be a significant contributor as we added another two networks in the quarter for a total of eight in the fiscal year.  The rising adoption of our agile end-to-end SaaS supply chain solutions by leading companies as the vendor of choice cements the important role we play in their digital transformation journeys and validates our strategy as well poised for continued success." Mark Bentler, chief financial officer of Tecsys Inc., added, "Looking ahead, we believe our evolution as a SaaS company and our drive to expand our partner ecosystem will continue to have an impact on our revenue mix.  From an investment standpoint, we believe our existing professional services capacity is adequate for the near term.  We believe that our prior investments in sales and marketing put us in a solid position to grow as productivity continues to improve.  Our investment in research and development during the fourth quarter will impact Q1 of fiscal 2023, but we expect investment to moderate beyond that point." Results from operations 3 months ended 3 months ended Fiscal Yearended Fiscal Yearended April 30, 2022 April 30, 2021 April 30, 2022 April 30, 2021 Total Revenue $ 34,288 $ 32,374 $ 137,200 $ 123,101 Cloud, Maintenance and Subscription Revenue 15,716 13,836 59,627 52,879 Gross Profit 15,130 15,723 60,310 60,630 Gross Margin % 44 % 49 % 44 % 49 % Operating Expenses 13,819 13,092 54,934 49,949 Op. Ex. As % of Revenue 40 % 40 % 40 % 41 % Profit from Operations 1,311 2,631 5,376 10,681 Adjusted EBITDAii 1,730 3,917 10,130 16,220 EPS basic 0.18 0.14 0.31 0.50 EPS diluted 0.17 0.14 0.30 0.49 License Bookings 540 752 2,402 4,288 SAAS ARR Bookings 4,457 3,493 11,920 9,548 Annual Recurring Revenue 62,737 52,485 Professional Services Backlog 33,427 33,639   Fiscal 2022 Highlights: SaaS revenue increased 41% to $26.9 million, up from $19.2 million in fiscal 2021. SaaS subscription bookingsi increased 25% to $11.9 million compared to $9.5 million in fiscal 2021. Professional services revenue was up 9% to $52.0 million compared to $47.5 million in fiscal 2021. Total revenue was $137.2 million, up 11% from $123.1 million reported in fiscal 2021. Gross margin was 44% compared to 49% for fiscal 2021. Total gross profit decreased to $60.3 million, down $0.3 million or 1% compared to $60.6 million in the same period last year. Operating expenses increased to $54.9 million, higher by $5.0 million or 10% compared to $49.9 million in the same period of fiscal 2021. Profit from operations was $5.4 million, down from $10.7 million in the same period of fiscal 2021. Net profit was $4.5 million, or $0.30 per diluted share, compared to a profit $7.2 million or $0.49 per share, for fiscal 2021. Adjusted EBITDAii was $10.1 million, down 38% compared to $16.2 million for fiscal 2021. A weaker USD to CAD exchange rate negatively impacted revenue by $6.6 million and Profit from operations and Adjusted AEBITDA by $5.2 million compared to the same period last year. On June 29, 2022, the Company declared a quarterly dividend of $0.07 per share payable on August 5, 2022 to shareholders of record at the close of business on July 15, 2022. Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be "eligible" dividends. i See Key Performance Indicators in Management's Discussion and Analysis of the 2022 Financial Statements.ii See Non-IFRS Performance Measures in Management's Discussion and Analysis of the 2022 Financial Statements. Fourth Quarter and Full Year Fiscal 2022 Results Conference CallDate: June 30, 2022Time: 8:30am EDTPhone number: (800) 758-5606 or (416) 641-6662 The call can be replayed until July 7, 2022 by calling:(800) 558-5253 or (416) 626-4100 (access code: 22019359) About Tecsys Tecsys is a global provider of supply chain solutions that equip the borderless enterprise for growth. Organizations thrive when they have the software, technology and expertise to drive operational greatness and deliver on their brand promise. Spanning healthcare, retail, service parts, third-party logistics, and general wholesale high-volume distribution industries, Tecsys delivers dynamic and powerful solutions for warehouse management, distribution and transportation management, supply management at point of use, retail order management, as well as complete financial management and analytics solutions. Tecsys' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS. For more information on Tecsys, visit www.tecsys.com. Forward Looking Statements The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of Tecsys Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with Tecsys Inc.'s business can be found in the MD&A section of the Company's annual report and the most recently filed annual information form. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com).  Copyright © Tecsys Inc. 2022. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners. Non-IFRS Measures  Reconciliation of EBITDA and Adjusted EBITDA EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before stock-based compensation, fair value adjustment on contingent consideration earnout, restructuring costs, gain on remeasurement of lease liability and recognition of tax credits generated in prior periods. The exclusion of interest expense, interest income, income taxes and restructuring costs eliminates the impact on earnings derived from non-operational activities, and the exclusion of depreciation, amortization, and share-based compensation, fair value adjustments, gains and losses on remeasurement of lease liabilities and recognition of tax credits generated in prior years eliminates the non-cash impact of these items. For the year ended April 30, 2022, we amended the definition of Adjusted EBITDA to include adjustments for the gain on remeasurement of lease liability and the recognition of tax credits generated in prior periods as a result of new significant non-cash transactions. The Company believes that these measures are useful measures of financial performance without the variation caused by the impacts of the items described above and that could potentially distort the analysis of trends in our operating performance. In addition, they are commonly used by investors and analysts to measure a company's performance, its ability to service debt and to meet other payment obligations, or as a common valuation measurement. Excluding these items does not imply that they are necessarily non-recurring. Management believes these non-GAAP financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company's operating results, underlying performance and future prospects in a manner similar to management. Although EBITDA and Adjusted EBITDA are frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under IFRS.The EBITDA and Adjusted EBITDA calculation for fiscal 2022, 2021 and 2020 derived from IFRS measures in the Company's Consolidated financial statements, is as follows: Year ended April 30, (in thousands of CAD) 2022 2021 2020 Profit for the period $    4,478 $    7,188 $    2,346 Adjustments for: Depreciation of property and equipment and right-of-use assets 2,162 2,180 2,004 Amortization of deferred development costs 290 269 536 Amortization of other intangible assets.....»»

Category: earningsSource: benzingaJun 29th, 2022

It"s a terrible time to become a house flipper

Shifting market dynamics mean fix-and-flip home investors' profits have tanked to a 13-year low. It could change how they choose to do business. While home sales by investors soared to a 22 year-high in the first quarter of 2022, their profit margins declined to a 13-year low.Rick Gomez/Getty Images The share of US homes sold by fix-and-flip investors soared to a 22 year-high in the first quarter of 2022. But their profit margins declined to a 13-year low.   As competition wanes due to a lack of affordability, these investors are losing out on money.  Pandemic-era mortgage rates didn't only entice families eager to purchase their dream homes —  they also lured fix-and-flip investors hoping to cash in on the American dream of homeownership. But as rising mortgage rates put a lid on the US home buying frenzy, investors' luck may be running thin. US home investors were responsible for 9.6% of all homes sold in the first quarter of 2022, representing the highest level since at least 2000, financial services company ATTOM Data Solutions said in its June home flipping report. But while home sales by investors soared to a 22 year-high, their profit margins declined to a 13-year low. "The good news for fix-and-flip investors is that demand remains strong from prospective homebuyers," Rick Sharga, executive vice president of market intelligence at ATTOM, said in a statement, referring to the process of purchasing, renovating, and selling a home within 12 months for a profit. "The bad news is that rising mortgage interest rates are beginning to slow down home price appreciation rates, and buyers have become more selective – and less willing to outbid other buyers for properties they're interested in."Data from ATTOM shows that out of every ten homes sold in Q1, at least one was a flip. Despite the increase in investor activity, the amount of gross profit that fix-and-flip investors made on transactions decreased to the lowest point since 2009, a time when the real estate market was still reeling from the Great Recession."Rising mortgage rates have had a major impact on affordability, and appear to be having an immediate effect on both demand and actual home sales," Sharga said, adding that it's having a predictable impact on investor profit margins.While historically low mortgage rates persuaded millions of Americans to purchase homes over the last two years, pandemic-era deals are over and buyer demand is waning. As competition eases, the white-hot housing market that house flippers helped overheat is now cooling. With home price appreciation slowing and buyers becoming more choosy —  house flipper's could see even more declines in their profits."Gross profits, and overall ROI are still relatively healthy for investors who don't overpay for homes, and who are good at managing repair costs, but if demand weakens further and prices begin to decline, returns for investors could definitely be impacted," Sharga told Insider. ATTOM's data shows that the typical gross-flipping profit — the median purchase price paid by an investor subtracted from the median resale price to a buyer — amounted to just $67,000 in Q1. While this translates into a 25.8% return on investment and is up 5.5% from Q4 of 2021, it's 4.3% less than the $70,000 level recorded during the same time period in 2021. "Investors are ultimately in business to make money, so smaller returns have a pretty dramatic and meaningful impact on their business," Sharga said. "This can result in changes to their business model —  how much and what kind of repair work they do on properties they're going to flip, or whether they hire fewer people to work on these properties or exit the business entirely."Shifting market dynamics are impacting how fix-and-flip-investors make their money. If mortgage rates continue to rise, they're likely to slow buyer demand further  — and that could mean investors will have to change how they do business.  "Fix-and-flip investors do best in markets characterized by strong demand and rising prices, so the opposite of those conditions will make it more difficult for these investors to make the kinds of margins they need to stay in business," Sharga said. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJun 29th, 2022

Oil Markets Could Face A Doomsday Scenario This Week

Oil Markets Could Face A Doomsday Scenario This Week Authored by Cyril Widdershoven via Oilprice.com, Expect lots of oil price volatility in the coming months as markets finally discover just how much spare capacity OPEC members really have. Oil production outages in Libya and the continued impact of Russia’s invasion of Ukraine are going to push oil prices higher if new supply isn’t found. While some analysts are predicting oil demand destruction in the near future, there is little evidence to back up those claims. Global oil markets are going to be very volatile in the coming months if news emerging from OPEC’s main producers about production capacity constraints turns out to be true. OPEC will be meeting again in the coming days to discuss its export agreements, while today the oil group is presenting its Annual Statistical Bulletin (ASB) 2022. While the media is likely to be focused on rumors in the next 24 hours of a possible change in the export strategy of OPEC+, the real focus should be on whether or not the oil cartel is even capable of substantially increasing its production.  For years, OPEC producers have been the main swing producers in oil markets. With a presumed spare capacity of more than 3-4 million bpd, Saudi Arabia and the UAE have always been seen as a point of last resort in case of a major crisis in oil and gas markets. During the former global oil glut, it seemed nothing could threaten the oil market, even when major conflicts emerged in Libya, Iraq, or elsewhere. The re-opening of the global economy after COVID-19, however, has brought fear back into the market that leading oil producers, including the USA and Russia, are unable to supply adequate volumes to the market. OPEC kingpins Saudi Arabia and the UAE are now being looked upon to increase production to historically high levels and bring oil prices down. Russia’s war against Ukraine, removing a possible 4.4 million bpd of crude and products in the coming months, has thrown this spare capacity problem into sharp relief.  This week, a possible doomsday scenario could emerge in oil markets, based not only on OPEC+ export strategies but also due to increased internal turmoil in Libya, Iraq, and Ecuador. Possible other political and economic turmoil is also brewing in other producers, while US shale is still not showing any signs of a substantial production increase in the coming months.  Global oil markets have long believed that OPEC has enough spare production capacity to stabilize markets, with Saudi Arabia and the UAE just needing to open their taps. There is ,however, no real evidence to suggest that OPEC has increased production capacity in place in the short term. A research note by Commonwealth Bank commodities analyst Tobin Gorey already noted that OPEC’s two leaders are producing at near-term capacity limits. At the same time, UAE Minister of Energy Suhail Al Mazrouei put even more pressure on oil prices as he stated that the UAE is producing near-maximum capacity based on its quota of 3.168 million barrels per day (bpd) under the agreement with OPEC and its allies. That comment could still indicate that there is some spare capacity left in Abu Dhabi, but the remarks were made after French President Emmanuel Macron had stated to US president Biden during the G7 meeting that not only is the UAE producing at maximum production capacity, but also that Saudi Arabia only has another 150,000 bpd of spare capacity available.  Macron stated that UAE’s president Mohammed bin Zayed (MBZ) told him that the UAE is at maximum production capacity while claiming that Saudi Arabia can increase production by another 150,000 bpd. Macron also claimed that Saudi Arabia won’t have a huge additional capacity within the coming six months. The official figures for both OPEC producers counter this narrative, however. Saudi Arabia is producing at 10.5 million bpd, with official capacity between 12-12.5 million bpd. The UAE is producing around 3 million bpd, claiming to have a capacity of 3.4 million bpd. The two countries’ spare production is still officially slated to be around 3.9 million bpd combined. Most analysts, however, have been questioning these figures for years.  Looking at OPEC+'s own production targets, the group has not been producing at agreed levels for months. At the Middle East and North Africa-Europe Future Energy Dialogue in Jordan, UAE’s Al Mazrouei said that OPEC+ was running 2.6 million barrels a day short of its production target. That means a potential shortage in the market, which could increase even further if internal turmoil causes further production decreases. For July-August, OPEC+ agreed to increase output by another 648,000 bpd, which would mean that the total output cut during COVID-19 pandemic of 5.8 million bpd has been restored. Whether or not OPEC+ is able to reach that level in the coming weeks remains very uncertain.  Pressure will build in the coming days, as Al Mazrouei’s remarks seem to rebuke claims of a spare capacity shortage, but as always “where there is smoke, there is a fire”.  A possible spare production capacity shortage, or non-availability at all, combined with an expected force majeure of Libya’s NOC in the Gulf of Sirte, and a suspension of Ecuador’s oil output (520,000 bpd) in the coming days due to anti-government protests, are likely to lead to an oil price spike.  There is still some optimism in markets about a real demand-supply crunch, as high inflation levels and a possible global economic slowdown could lead to lower demand. Until now, however, that optimism has not materialized at all, demand is still increasing, even though gasoline and diesel prices are breaking historical price levels. The re-opening of the Chinese economy, a natural gas shortage globally, and higher temperatures in the coming weeks, combined with the normal peak in demand due to the US and EU driving season, all look set to push oil prices higher. OPEC’s future is at stake if spare production capacity really has run out. For years, analysts (including myself) have been warning about a lack of investment in upstream worldwide. That has already led to lower production capacity of independent oil companies, such as most IOCs, and for national oil companies, the situation appears to be similar. Even though Saudi Aramco, ADNOC, and some others, have been keeping their upstream (and downstream) investments level during the last decade (even during COVID), other main OPEC producers have seen dwindling investment budgets or even full-scale crises. Most OPEC producers could increase their overall production still, but only for a limited period of time. Where most spare production capacity is short-term based, partly to avoid damaging reserves in the long run, the current oil crisis is a much more prolonged long-term issue. Western sanctions on Russia, combined with existing sanctions on Venezuela and Iran, will hurt markets for years to come.  There is no quick-fix solution to the current oil market crisis, even the lifting of sanctions on Venezuela or Iran will not result in substantial volume increases. At the same time, increased Western political interference in the already struggling market will hit volumes too. The growing call in the USA, UK, and EU, to put a windfall tax on oil and gas companies will not only constrain further investments in upstream but will also lead to higher prices at the pump. Consumers are not going to feel any positive price effects and can expect steadily increasing energy bills in the coming months.  No statements made by OPEC in the coming two days are going to be able to remove the worries in the market. OPEC’s future depends fully on its power to stabilize markets. At present, there appear to be no options available to the cartel. Without new oil production hitting markets soon, OPEC leaders MBZ and Crown Prince Mohammed bin Salman need to try to maintain the illusion of spare capacity. If spare production capacity is revealed to be under 1.5-2 million bpd, the future of both OPEC and oil markets would be bleak. Tyler Durden Wed, 06/29/2022 - 14:05.....»»

Category: blogSource: zerohedgeJun 29th, 2022

Futures Slide Amid Renewed Recession Fears After China Doubles Down On "Covid Zero"

Futures Slide Amid Renewed Recession Fears After China Doubles Down On "Covid Zero" One day after futures ramped overnight (if only to crater during the regular session) on hopes China was easing its highly politicized  Zero Covid policy after it cut the time of quarantine lockdowns, this morning futures slumped early on after China's President Xi Jinping made clear that Covid Zero isn't going anywhere and remains the most “economic and effective” policy for China during a symbolic visit to the virus ground zero in Wuhan, in which he cast the strategy as proof of the superiority of the country’s political system. That coupled with renewed recession worries (market is again pricing in a rate cut in Q1 2023) even as monetary policy tightens in much of the world to fight supply-side inflation, sent US futures and global markets lower. S&P futures dropped 0.2% and Nasdaq 100 futures were down 0.4% after the underlying index slumped on 3.1% on Tuesday. The dollar was steady after rising the most in over a week while WTI crude climbed above $112 a barrel, set for a fourth session of gains. In cryptocurrencies, Bitcoin dipped below the closely watched $20,000 level on news crypto hedge fund 3 Arrows Capital was ordered to liquidate. The Nasdaq's Tuesday’s slump added to what was already one of the worst years in terms of big daily selloffs in US stocks. The S&P 500 Index has fallen 2% or more on 14 occasions, putting 2022 in the top 10 list, according to Bloomberg data. Not helping the tech sector, on Wednesday morning JPMorgan cut its earnings estimates across the sector, especially for companies exposed to online advertising, citing macroeconomic pressures, forex and company-specific dynamics. One of the chief drivers for overnight weakness, China's Xi said during a trip Tuesday to Wuhan where the virus first emerged in late 2019 that relaxing Covid controls would risk too many lives in the world’s most populous country. China would rather endure some temporary impact on economic development than let the virus hurt people’s safety and health, he said, in remarks reported Wednesday by state media. As a result, China’s CSI 300 Index extended loss to 1.4% after the headline, while the yuan drops as much as 0.2% to trade 6.7132 against the dollar in the offshore market. Among key premarket movers, Tesla slipped in US premarket trading. The electric-vehicle maker laid off hundreds of workers on its Autopilot team as it shuttered a California facility, according to people familiar with the matter. Carnival slumped as Morgan Stanley analysts warned that the London and New York-listed cruise vacation company’s shares could lose all their value in the event of another demand shock. Pinterest gained 3.7% as the company’s co- founder and CEO Ben Silbermann quit and handed the reins to Google and PayPal veteran Bill Ready in a sign the social-media company will focus more on e-commerce. Also, despite the pervasive weakness, the Energy Select Sector SPDR Fund ETF (XLE) rebounded off key support (50% Fibonacci) relative to the SPDR S&P 500 ETF (SPY). That said, energy was alone and most other notable movers were down in the premarket: Carnival (CCL US) shares fall 8% premarket as Morgan Stanley analysts warned that the cruise vacation firm’s shares could lose all their value in the event of another demand shock. Nio (NIO US) shares drop 8.2% after short-seller Grizzly Research published a report on Tuesday alleging that the electric carmaker used battery sales to a related party to inflate revenue and boost net income margins. The company rejected the claims. Upstart Holdings (UPST US) shares slump about 9% after Morgan Stanley downgraded the consumer finance company to underweight from equal-weight amid rising cyclical headwinds. Ormat Technologies (ORA US) rallies as much as 5% after the renewable energy company is set to be included in the S&P Midcap 400 Index. 2U (TWOU US) shares rise 16% premarket. Indian online-education provider Byju’s has offered to buy the company in a cash deal that values the US-listed edtech firm at more than $1 billion, a person familiar with the matter said. Watch Amazon (AMZN US) shares as Redburn initiated coverage of the stock with a buy recommendation and set a Street-high price target, saying “there is a clear path toward a $3 trillion value for AWS alone.” Shares in data center REITs could be active later in the trading session after short-seller Jim Chanos said in an FT interview that he’s betting against “legacy” data centers. Watch Digital Realty (DLR US) and Equinix (EQIX US), as well as data center operators Cyxtera Technologies (CYXT US) and Iron Mountain (IRM US) Investors are growing increasingly skeptical that the Fed can avoid a bruising economic downturn amid sharp interest-rate hikes. Evaporating consumer confidence is feeding into concerns that the US might tip into a recession. Naturally, Fed officials sought to play down recession risk. New York Fed President John Williams and San Francisco’s Mary Daly both acknowledged they had to cool inflation, but insisted that a soft landing was still possible. “It seems the market is in this tug of war between on the one hand the hope that we are close to the peak in inflation and rates, and on the other hand the challenge of a slowing economy and potential recession,” Emmanuel Cau, head of European equity strategy at Barclays Bank Plc, said in an interview with Bloomberg TV. “Central banks are walking a very tight line and to a certain extent dictate the mood in the markets.” European equities snapped three days of gains, trading poorly but off worst levels with sentiment also hurt by China remaining committed to its zero-Covid approach. Spanish inflation unexpectedly surged to a record, dashing hopes that inflation in the euro zone’s fourth-biggest economy had peaked, and emboldening European Central Bank policy makers pushing for big increases in interest rates. The ECB should consider raising interest rates by twice the planned amount next month if the inflation outlook deteriorates, according to Governing Council member Gediminas Simkus, as calls not to exclude an outsized initial move grow. German benchmark bonds rose, while 10-year Treasury yields slipped to 3.16%. DAX lags, dropping as much as 1.8%. Real estate, autos and miners are the worst performing sectors. In notable moves in European stocks, Hennes & Mauritz (H&M) gained after the Swedish low-cost retailer’s earnings beat analyst estimates. Just Eat Takeaway.com NV tumbled to a record low after Berenberg analysts rated the stock sell, saying the food delivery firm’s UK business will remain under pressure. Here are some of the biggest European movers today: Just Eat Takeaway shares plunge as much as 21% after Berenberg initiated coverage with a sell rating, saying the firm’s UK business will remain under pressure and a sale of its Grubhub unit is unlikely to satisfy the bulls. Carnival stocks slumped over 12% in London as Morgan Stanley analysts warned that the cruise vacation firm’s shares could lose all their value in the event of another demand shock. Pearson drops as much as 6.1% after the education company was cut to sell at UBS, which reduced forecasts to reflect a weak outlook for 2022 college enrollments. Grifols shares plunge as much as 13% on a media report the Spanish plasma firm is weighing a capital raise of as much as EU2b to cut its debt. Diageo shares fall after downgrades for the spirits group from Deutsche Bank and Kepler Cheuvreux, while Pernod Ricard also dips on a rating cut from the latter. Diageo declines as much as 4.2%, Pernod Ricard -3.7% Fluidra shares fall as much as 8.4% after Santander cut its rating on the Spanish swimming pools company. The bank’s analyst Alejandro Conde cut the recommendation to neutral from outperform. H&M shares rise as much as 6.8% after the Swedish apparel retailer reported 2Q earnings that beat estimates. Jefferies said the margin beat in particular was reassuring, while Morgan Stanley said it was a “positive surprise” overall. Ipsen shares rise as much as 3.1% after UBS analyst Michael Leuchten said that accepting palovarotene refiling priority review should be a net present value and confidence boost. Asian stocks fell, halting a four-day gain, as renewed angst over the outlook for global economic growth and inflation help drive a selloff across most of the region’s equity markets. The MSCI Asia Pacific Index dropped as much as 1.5%, led by consumer discretionary and information sectors. Chinese equities in particular took a hit, as the CSI 300 Index fell 1.5% Wednesday after Xi Jinping reiterated his firm stance on Covid zero. Tech-heavy indexes in markets such as South Korea and Taiwan took the brunt of Wednesday’s drop amid lingering concerns that monetary tightening in much of the world to fight inflation will cause an economic slowdown. While Federal Reserve members have played down the risk of a US recession, gloomy data such as US consumer confidence have damped investor sentiment. “Volatility is going to be the enduring feature of the market, I suspect, for the next couple of quarters at least until we get a firm sense that peak inflation has passed,” John Woods, Credit Suisse Group AG’s Asia-Pacific chief investment officer, said in an interview with Bloomberg TV. “Markets, I think, have aggressively priced in quite a serious or steep recession.”  China’s four-day winning streak came to a halt, putting its advance toward a bull market on hold.  “We will continue to see a risk of targeted lockdowns, and that spoils the initial euphoria seen in the markets from the announcement on relaxation of quarantine requirements,” said Charu Chanana, market strategist at Saxo Capital Markets. “Still, economic growth will likely be prioritized as this is a politically important year for China.”  Japanese equities decline as investors digested data that showed a drop in US consumer confidence over inflation worries and increased concerns of an economic downturn.  The Topix Index fell 0.7% to 1,893.57 in Tokyo on Wednesday, while the Nikkei declined 0.9% to 26,804.60. Toyota Motor Corp. contributed the most to the Topix’s decline, decreasing 1.8%. Out of 2,170 shares in the index, 1,114 fell, 984 rose and 72 were unchanged. “There are concerns about stagflation,” said Hideyuki Suzuki a general manager at SBI Securities. “The consumer sentiment from the University of Michigan, which provides one of the fastest data points, has already shown poor figures.” Stocks in India tracked their Asian peers lower as brent rose to the highest level in two weeks, while high inflation and slowing global growth continued to dampen risk-appetite for global equities. The S&P BSE Sensex fell 0.3% to 53,026.97 in Mumbai, while the NSE Nifty 50 Index declined by an equal measure. Both gauges have lost more than 4% in June and are set for their third consecutive month of declines. The main indexes have dropped for all but one month this year. Twelve of the 19 sub-sector gauges compiled by BSE Ltd. eased, led by banking companies while power producers were the top performers.   Investors will also be watching the expiry of monthly derivative contracts on Thursday, which may lead to some volatility in the markets.  Hindustan Unilever was the biggest contributor to the Sensex’s decline, decreasing 3.5%. Out of 30 shares in the Sensex, 10 rose and 20 fell. The Bloomberg Dollar Spot Index inched up modestly as the greenback traded mixed against its Group-of-10 peers; the Swiss franc led gains while Antipodean currencies were the worst performers and the euro traded in a narrow range around $1.05. The relative cost to own optionality in the euro heading into the July meetings of the ECB and the Federal Reserve was too low for investors to ignore and has become less and less underpriced. The yen strengthened and US and Japanese bond yields fell. In rates, fixed income has a choppy start. Bund futures initially surged just shy of 200 ticks on a soft regional German CPI print before fading the entire move over the course of the morning as Spanish data hit the tape, delivering a surprise record 10% reading for June and more hawkish ECB comments crossed the wires. Treasuries and gilts followed with curves eventually fading a bull-steepening move. Long-end gilts underperform, cheapening ~4bps near 2.75%. Peripheral spreads are tighter to core.  Treasuries are slightly higher as US trading day begins, off the session lows reached as bund futures jumped after the first monthly drop since November in a German regional CPI gauge. Yields are lower across the curve, by 1bp-2bp for tenors out to the 10-year with long-end yields little changed; 10-year declined as much as 5.3bp vs as much as 8.2bp for German 10- year, which remains lower by ~3bp. Focal points for the US session include a final revision of 1Q GDP, comments by Fed Chair Powell, and anticipation of quarter-end flows favoring bonds. Quarter-end is anticipated to cause rebalancing flows into bonds; Wells Fargo estimated that $5b will be added to bonds, with most of the flows occurring Wednesday and Thursday. In commodities, crude futures advance. WTI drifts 0.3% higher to trade near $112.13. Base metals are mixed; LME tin falls 5.6% while LME zinc gains 0.4%. Spot gold falls roughly $5 to trade near $1,815/oz Looking ahead, the highlight will be the panel at the ECB Forum that includes Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey. We’ll also be hearing from ECB Vice President de Guindos, the ECB’s Schnabel, the Fed’s Mester and Bullard, and the BoE’s Dhingra. On the data side, releases include German CPI for June, Euro Area money supply for May, and the final Euro Area consumer confidence reading for June. From the US, we’ll also get the third reading of Q1 GDP. Market Snapshot S&P 500 futures little changed at 3,829.00 STOXX Europe 600 down 0.8% to 412.69 MXAP down 1.3% to 159.96 MXAPJ down 1.6% to 531.04 Nikkei down 0.9% to 26,804.60 Topix down 0.7% to 1,893.57 Hang Seng Index down 1.9% to 21,996.89 Shanghai Composite down 1.4% to 3,361.52 Sensex little changed at 53,204.17 Australia S&P/ASX 200 down 0.9% to 6,700.23 Kospi down 1.8% to 2,377.99 German 10Y yield little changed at 1.59% Euro little changed at $1.0510 Brent Futures down 0.4% to $117.46/bbl Gold spot down 0.2% to $1,816.09 U.S. Dollar Index little changed at 104.55 Top Overnight News from Bloomberg The Fed’s Loretta Mester said she wants to see the benchmark lending rate reach 3% to 3.5% this year and “a little bit above 4% next year” to rein in price pressures even if that tips the economy into a recession The ECB should consider raising interest rates by twice the planned amount next month if the inflation outlook deteriorates, according to Governing Council member Gediminas Simkus, as calls not to exclude an outsized initial move grow ECB has “ample room” to hike in 25bps-50bps steps to “whatever rate we think, we consider reasonable,” Governing Council member Robert Holzmann said in interview with CNBC Swedish consumers are gloomier than they have been since the mid-1990s, as prices surge on everything from fuel to food and furniture China’s President Xi Jinping declared Covid Zero the most “economic and effective” policy for the nation, during a symbolic visit to Wuhan in which he cast the strategy as proof of the superiority of the country’s political system NATO moved one step closer to bolstering its eastern front with Russia after Turkey dropped its opposition to Swedish and Finnish bids to join the military alliance A more detailed look at markets courtesy of Newsquawk Asia-Pac stocks were pressured amid headwinds from the US where disappointing Consumer Confidence data added to the growth concerns. ASX 200 failed to benefit from better than expected Retail Sales and was dragged lower by weakness in miners and tech. Nikkei 225 fell beneath the 27,000 level as industries remained pressured by the ongoing power crunch. Hang Seng and Shanghai Comp. conformed to the negative picture in the region although losses in the mainland were initially stemmed after China cut its quarantine requirements which the National Health Commission caveated was not a relaxation but an optimization to make it more scientific and precise. Top Asian News Chinese President Xi said China's COVID prevention control and strategy is correct and effective and must stick with it, via state media. Shanghai will gradually reopen museums and scenic sports from July 1st, state media reports. US Deputy Commerce Secretary Graves said the US will take a balanced approach on Chinese tariffs and that a clear response on China tariffs is coming soon, according to Bloomberg. China State Council's Taiwan Affairs Office said it firmly opposes the US signing any agreement that has sovereign connotations with Taiwan, according to Global Times. BoJ Governor Kuroda said Japanese Core CPI reached 2.1% in April and May which is almost fully due to international energy prices and Japan's economy has not been affected much by the global inflationary trend so monetary policy will stay accommodative, according to Reuters. Japanese govt to issue power supply shortage warning for a fourth consecutive day on Thursday, according to a statement. European bourses are on the backfoot as the region plays catch-up to the losses on Wall Street yesterday. Sectors are mostly lower (ex-Energy) with a defensive tilt as Healthcare, Consumer Products, Food & Beverages, and Utilities are more cushioned than their cyclical peers. Stateside, US equity futures trade on either side of the unchanged mark with no stand-out performers thus far, with the contracts awaiting the next catalyst. Top European News UK expects defence spending to reach 2.3% of GDP and said PM Johnson will announce new military commitments to NATO, according to Reuters. UK Weighs Capping Maximum Stake in Online Casinos at £5 Europe Is the Only Region Where Earnings Estimates Are Rising European Gas Prices Rise as Supply Risks Add to Storage Concerns Gold Steady as Traders Weigh Fed Comments on US Recession Risks Choppy Start for Euro-Area Bonds on Mixed Inflation FX Dollar mostly bid otherwise as rebalancing demand underpins - DXY pivots 104.500 within 104.700-350 confines. Franc outperforms on rate and risk considerations - Usd/Chf breaches 0.9550 and Eur/Chf approaches parity. Euro erratic in line with conflicting inflation data - Eur/Usd rotates around 1.0500. Aussie and Kiwi undermined by downturn in sentiment - Aud/Usd loses 0.6900+ status, Nzd/Usd wanes from just over 0.6250. Yen rangy following firmer than forecast Japanese retail sales and BoJ Governor Kuroda reaffirming intent to remain accommodative - Usd/Jpy straddles 136.00. Nokkie welcomes oil worker wage agreement with unions to avert strike action, but Sekkie hampered by softer Swedish macro releases pre-Riksbank policy call tomorrow - Eur/Nok probes 10.3000, Eur/Sek hovers around 10.6800. Rand rattled by decline in Gold and ongoing SA power supply problems, but Rouble rallies irrespective of CBR and Russian Economy Ministry divergence over deflation. Central Banks ECB's Lane said there are two-way inflation risks: "on the one side, there could be forces that keep inflation higher than expected for longer. On the other side, we do have the risk of a slowdown in the economy, which would reduce inflationary pressure", via ECB. ECB's Holzmann said "We will have to make an assessment where the economic development is going and where inflation stands and afterwards there’s ample room to hike in 0.25 and 0.5 levels to whatever rate we think, we consider reasonable" via CNBC. ECB's Simkus said if data worsens, then he wants a 50bps July hike as an option, 50bps hike is very likely in September; ECB's fragmentation tool should serve as a deterrent, via Bloomberg. ECB's Herodotou said EZ inflation will peak this year, via CNBC. ECB's Wunsch said government aid may spell more rate hikes, via Bloomberg; 150bps of hikes by March 2023 is reasonable ECB is said to be weighting whether or not they should announce the size and duration of their upcoming bond-buying scheme, according to Reuters sources. Fed's Mester (2022, 2024 voter) said on a path towards restrictive interest rates; July debate between 50bps and 75bps hike, via CNBC. Mester said if inflation expectations become unanchored, monetary policy would have to act more forcefully; current inflation situation is a very challenging one, via Reuters. SARB Governor said a 50bps hike is "not off the table", Via Bloomberg CBR Governor said she does not see risks of deflation; sees room to cut rates; sticking to policy of floating RUB exchange rate. PBoC will step up implementation of prudent monetary policy, will keep liquidity reasonably ample. Fixed Income Bunds unwind all and a bit more of their hefty post-NRW CPI gains as other German states show smaller inflation slowdowns and Spanish HICP soars. Gilts suffer more pronounced fall from grace in relative terms and US Treasuries slip from overnight peaks in sympathy. UK debt and STIRs also await testimony from MPC member elect to see if newbie leans dovish, hawkish or middle of the road 10 year benchmarks settle off worst levels within 147.37-145.14, 112.66-11.85 and 117-12+/116-27 respective ranges awaiting comments from ECB, Fed and BoE heads at Sintra Forum. Commodities WTI and Brent front-month futures traded with no firm direction in early European hours before picking up modestly in recent trade. US Private Inventory (bbls): Crude -3.8mln (exp. -0.6mln), Cushing -0.7mln, Distillate +2.6mln (exp. -0.2mln) and Gasoline +2.9mln (exp. -0.1mln). Norway's Industri Energi and SAFE labour unions agreed a wage deal for oil drilling workers and will not go on strike, according to Reuters. OPEC to start today at 12:00BST/07:00EDT; JMMC on Thursday at 12:00BST/07:00EDT followed by OPEC+ at 12:30BST/07:30EDT, via EnergyIntel. Libya's NOC suspends oil exports from Es Sider port. Spot gold is under some mild pressure as the Buck and Bond yields picked up, with the yellow metal back to near-two-week lows Base metals are mixed but off best levels after President Xi reaffirmed China's COVID stance – LME copper fell back under USD 8,500/t US Event Calendar 07:00: June MBA Mortgage Applications, prior 4.2% 08:30: 1Q PCE Core QoQ, est. 5.1%, prior 5.1% 08:30: 1Q GDP Price Index, est. 8.1%, prior 8.1% 08:30: 1Q Personal Consumption, est. 3.1%, prior 3.1% 08:30: 1Q GDP Annualized QoQ, est. -1.5%, prior -1.5% Central Banks 09:00: Powell Takes Part in Panel Discussion at ECB Forum in Sintra 09:00: Lagarde, Powell, Bailey, Carstens Speak in Sintra 11:30: Fed’s Mester Speaks on Panel at ECB Forum in Sintra 13:05: Fed’s Bullard Makes Introductory Remarks DB's Jim Reid concludes the overnight wrap I'm finishing this off in a taxi on the way to the Eurostar this morning and I made the mistake of telling the driver I was slightly pressed for time. He seems to be taking the racing line everywhere and my motion sickness is kicking in. A little like this car journey, it's been another volatile 24 hours in markets, with a succession of weak data releases raising further questions about how close the US and Europe might be to a recession. That saw equities give up their initial gains to post a decent decline on the day, whilst there was little respite from central bankers either, with sovereign bonds selling off further as multiple speakers doubled down on their hawkish rhetoric. That comes ahead of another eventful day ahead on the calendar, with investors primarily focused on a panel featuring Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey, as well as the flash German CPI print for June, who are the first G7 economy to release their inflation print for the month, which will provide some further clues on how fast central banks will need to move on rate hikes. Just as we go to print the NRW region of Germany has seen CPI print at 7.5% YoY, way below last month's 8.1%. This region is around a quarter of GDP so it could imply the national numbers will be notably softer when we get them later. The energy tax cuts were always going to come through in June so some respite was always possible but at first glance this seems materially below what might have been expected. This comes after a significant sovereign bond selloff in Europe once again yesterday as President Lagarde reiterated the central bank’s determination to bring down inflation, and described inflation pressures that were “broadening and intensifying”. And although Lagarde stuck to the existing script about the ECB raising rates by 25bps at the next meeting, we also heard from Latvia’s Kazaks who said that “front-loading the increase would be a reasonable choice” in the event that the situation with inflation or inflation expectations deteriorates. Lagarde did nod to this in part, saying that if the ECB was “to see higher inflation threatening to de-anchor inflation expectations, or signs of a more permanent loss of economic potential that limits resources availability, we would need to withdraw accommodation more promptly to stamp out the risk of a self-fulfilling spiral.” Separately on fragmentation, Lagarde said that they could “use flexibility in reinvesting redemptions” from PEPP starting July 1 in order to deal with the issue. For now, overnight index swaps are only pricing in a +31.3bps move in July from the ECB, so still closer to 25 than 50 for the time being. Meanwhile the rate priced in by year-end rose also by +7.9bps as investors interpreted the comments in a hawkish light. That supported a further rise in yields, with those on 10yr bunds up another +8.1bps yesterday, following on from their +10.7bps move in the previous session. That’s now almost reversed the -21.9ps move over the previous week, which itself was the third-largest weekly decline in bund yields for a decade, and brought the 10yr yield back up to 1.63%, so not far off its multi-year high of 1.77% seen last week. A similar pattern was seen elsewhere, with 10yr yields on 10yr OATs (+9.6bps), BTPs (+4.2bps) and gilts (+7.2bps) all moving higher too. Things turned near the European close with some poor US data releases piling on to some lacklustre confidence figures in Europe. Earlier in the day the GfK consumer confidence reading from Germany fell to -27.4 (vs. -27.3 expected), taking it to another record low. Separately in France, consumer confidence fell to 82 on the INSEE’s measure (vs. 84 expected), which we haven’t seen since 2013. Then in the US, the Conference Board’s measure fell to 98.7 (vs. 100.0 expected), which is the lowest since February 2021. The Conference Board’s one-year ahead inflation expectations hit a record high of 8.0%, surpassing the June 2008 record of 7.7%, adding to the pessimism. Along with waning confidence, the Richmond Fed’s Manufacturing Index registered a -19, its lowest since the peak onset of the pandemic, versus expectations of -7 and a prior of -9, showing that production data has weakened as well. This put a serious damper on risk sentiment which drove Treasury yields and equities lower intraday during the New York session. 10yr Treasury yields ended down -2.8bps after trading as much as +5.5bps higher during the European session. They are down another -4bps this morning. Concerningly as well, there was a fresh flattening in the Fed’s preferred yield curve indicator (which is 18m3m – 3m), which came down another -9.1bps to 165bps, which is the flattest its been since early March. With that succession of bad news helping to dampen risk appetite, US equities gave up their opening gains to leave the S&P 500 down -2.01% on the day. Tech stocks saw the worst losses, with the NASDAQ (-2.98%) and the FANG+ (-3.74%) seeing even larger declines. And whilst there was a stronger performance in Europe, the STOXX 600 ended the day up just +0.27%, having been as high as +0.95% in the couple of hours before the close. We didn’t hear so much from the Fed ahead of Chair Powell’s appearance today, although New York Fed President Williams said that at the upcoming July meeting “I think 50 to 75 is clearly going to be the debate”. Markets are continuing to price something in between the two, although since the last Fed meeting futures have been consistently closer to 75 than 50, with 69.0 bps right now. Those sharp losses in US equities are echoing across Asia this morning. The Hang Seng (-1.86%) is leading the losses followed by the Kospi (-1.82%), the Nikkei (-1.07%) and the ASX 200 (-1.06%). Over in mainland China, the Shanghai Composite (-0.77%) and the CSI (-0.80%) are slightly out-performing after yesterday’s surprise move by China to slash the quarantine period for inbound travellers (more on this below). Looking ahead, US stock index futures point to a positive opening with contracts on the S&P 500 (+0.18%) and NASDAQ 100 (+0.19%) mildly higher. Earlier today, data released showed that Japan’s retail sales advanced for the third consecutive month in May (+3.6% y/y) but lower than the consensus of +4.0%, but with the previous month's data revised up to +3.1% (vs +2.9% preliminary). Meanwhile, South Korea’s consumer sentiment index (CSI) fell sharply to 96.4 in June (vs 102.6 in May), sliding below the long-term average of 100 for the first time since Feb 2021. Separately, Australia’s retail sales put in another strong performance as it climbed +0.9% m/m in May, surpassing analyst estimates of a +0.4% increase. Oil has fallen back slightly overnight after three sessions of gains with Brent futures down -0.84% at $116.99 and WTI futures (-0.64%) at $111.04/bbl as I type. Just after we went to press yesterday, it was also announced that China would be shortening the required quarantine period for inbound travellers to one week from two. So although China is still very-much committed to a Covid-zero strategy for the time being, this step towards loosening rather than tightening restrictions is an interesting development that helped support Chinese equities in yesterday’s session towards the close which filtered through into early northern hemisphere risk performance. In terms of other data yesterday, there were signs that US house price growth might finally be slowing somewhat, with the S&P CoreLogic Case-Shiller index up by +20.4% in April, which is down slightly from the +20.6% gain in March. So still a long way from an absolute decline, but that marks a reversal in the trend after the previous 4 months of rises in the year-on-year measure. To the day ahead now, and the highlight will likely be the panel at the ECB Forum that includes Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey. We’ll also be hearing from ECB Vice President de Guindos, the ECB’s Schnabel, the Fed’s Mester and Bullard, and the BoE’s Dhingra. On the data side, releases include German CPI for June, Euro Area money supply for May, and the final Euro Area consumer confidence reading for June. From the US, we’ll also get the third reading of Q1 GDP. Tyler Durden Wed, 06/29/2022 - 08:00.....»»

Category: smallbizSource: nytJun 29th, 2022

G7 Set To Impose "Price Caps" On Russian Oil; Unclear What This Actually Does

G7 Set To Impose "Price Caps" On Russian Oil; Unclear What This Actually Does In the latest bizarro move by western nations meant to hurt Russia, but will blow back and help Putin get even richer while impoverishing western motorists with even higher gas prices, G7 leaders meeting at a Bavarian Alp summit, plan to impose a “price cap” on Russian oil as the group works to curb Moscow’s ability to finance its war in Ukraine, the FT reported. The latest sanction follows news that the same G7 will also impose an import ban on Russian gold, which western nations already can't buy, and which will only push even more physical gold into the willing hands of India and China while pushing global prices higher. Talks were set to continue on Monday, having begun on Sunday in the luxury resort of Schloss Elmau, where leaders want to enlist a range of countries beyond the G7 to put a ceiling on the price paid for Russian oil. It isn't exactly clear just what such a cap would achieve since western nations have already "agreed" to ban Russian oil imports some time in 2023 (or maybe that was 2024... or 2025), but according to the FT, leaders hope a cap will limit the benefits of the soaring price of crude to the Kremlin. Of course, that won't work since non-G7 member states will pay Moscow anything it wants to be paid and as such the price cap will only demonstrate to the world just how meaningless G7 "unity" is in world where the two largest nations - India and China - side with Russia. The idea of an oil price cap comes as the high price of crude means Russia’s revenues from oil exports have surged declined despite western restrictions on Russian oil imports. Concern is also mounting that attempts to ban ships carrying Russian oil from accessing western insurance markets this year could drive global oil prices to unprecedented levels. The International Energy Agency warns it could contribute to the shutdown of more than a quarter of Russia’s pre-invasion production. Under the price-capping scheme, Europe would limit the availability of shipping and insurance services that enable the worldwide transport of Russian oil, mandating that the services would only be available if the price ceiling was observed by the importer. A similar restriction on the availability of US financial services could give the scheme added impact. Obviously, this naive proposal has had the full backing of the Biden admin and recent comments by German officials suggested Berlin was also coming around to the idea. Officials said that Mario Draghi, Italy’s prime minister, told fellow G7 leaders that energy price caps were needed because “we must reduce the amount of money going to Russia and get rid of one of the main causes of inflation”. While it is understandable that Europe is angry that its actions have helped Russia claim a record current account surplus, even as the US current account deficit hits an all time high... ... it is not at all understandable how a self-imposed "price cap" by European nations - who have already made buying of Russian oil effectively illegal - and which needs to be implemented by all nations in the world and won't be with China and India holding out, will achieve anything. In any case, the FT reports that on Monday, the caps will be debated by a broader group when the leaders of Germany, the US, UK, France, Italy, Japan and Canada are joined by “partner” countries invited to the summit. These include India, which has become a big buyer of discounted Russian oil since the invasion of Ukraine, as well as Argentina, South Africa, Senegal and Indonesia. Charles Michel, president of the European Council, said the EU was ready to decide with its partners on a price cap but stressed the need for a “clear vision” and awareness of possible knock-on effects. “We want to make sure the goal is to target Russia and not to make our life more difficult and more complex.” A senior German official told the FT that “intensive discussions” were under way on how a cap would be implemented and work alongside western and Japanese sanctions. “The issues we have to solve are not trivial, but we’re on the right track towards coming to an agreement,” the official added. Where it gets confusing is that the EU in May agreed to a phased-in ban on seaborne Russian oil shipments while temporarily allowing crude deliveries via pipeline to continue. The US has already banned Russian oil imports and the UK plans to phase them out by the end of this year. So in effect the US has banned Russian oil, and its push for "price caps" is just to warn those nations which are still overly reliant on Russian to not overpay! One couldn't make this up! Meanwhile, unfazed by the Bavarian clownshow, Russia could cut oil supplies sharply in response to any attempt to impose a price cap energy executives warned, or make further cuts to gas exports to Europe. So let's get this straight: Europe threatens to cut imports from Russia further, and pretend to pay less, but only if Russia doesn't cut exports to Europe even more first. Realizing perhaps that the facade of Europe's "united front" has become a very expensive joke to most European populations, UK prime minister Boris Johnson reiterated the need to maintain consensus, warning of “fatigue” among “populations and politicians”. And just to make sure there is even more fatigue, in "a mark of solidarity", Ukraine’s comedian actor president Volodymyr Zelenskyy was invited to join the G7 summit by video link on Monday. As part of efforts to raise the economic pressure on Russia, Britain, Canada, Japan and the US announced moves to ban imports of Russian gold. “We need to starve the Putin regime of its funding,” said Johnson, clearly unaware that anything the West doesn't buy, Asia will buy twice as much of at a 25% discount. As for why this price cap idiocy is Dead on Arrival Germany's Scholz stressed that the concept will need widespread buy-in around the world...  which it will never get! It would also require the EU to amend its ban on insuring Russian crude shipments — introduced with the ban on seaborne oil imports — which would need the buy-in of all 27 member states, which is also unlikely to happen with Hungary the perpetual hold out. Tyler Durden Mon, 06/27/2022 - 10:25.....»»

Category: blogSource: zerohedgeJun 27th, 2022

Century 21 Lighthouse Realty And First Coast Realty Partner

Jeff Burgess, owner of CENTURY 21 Lighthouse Realty, has announced a new partnership with Jason Barber, owner of First Coast Realty Group, LLC. The two Florida-based firms will form a local Jacksonville office to act as a one-stop shop for local homebuyers, sellers and property investors. Burgess, Barber, and their now combined team of 180… The post Century 21 Lighthouse Realty And First Coast Realty Partner appeared first on RISMedia. Jeff Burgess, owner of CENTURY 21 Lighthouse Realty, has announced a new partnership with Jason Barber, owner of First Coast Realty Group, LLC. The two Florida-based firms will form a local Jacksonville office to act as a one-stop shop for local homebuyers, sellers and property investors. Burgess, Barber, and their now combined team of 180 sales professionals will leverage the CENTURY 21 brand’s productivity platform, marketing, and agent coaching to build relationships with the residents of Florida’s Atlantic coast. “This partnership with Jeff and his team is in the best interests of my family of agents and their clients,” said Barber. “No other company we spoke to could match what the CENTURY 21 brand offers, and their mission to deliver extraordinary experiences ladders up to our own commitment to quality service and ensures that the people and families who have come to trust and rely on us will get to the best real estate outcomes possible.” “Jason’s mindset for supporting his agents and going above and beyond sets the positive tone for our combined workplace and ultimately will create a stronger team of sales professionals who do the same for the people and the communities in which they live and work,” said Burgess. “That is powerful, especially when you factor in that real estate drives economies and people’s abilities to generate wealth and equity.” “This is terrific news for us because both Jeff and Jason are known in the markets they serve for giving 121%,” said Mike Miedler, president and CEO of Century 21 Real Estate LLC. “Their energy and enthusiasm for delivering quality and experiences people covet is unparalleled. My team looks forward to doing everything that we can to help them grow their business and the impact they have in their communities.” For more information, visit www.century21.com or www.firstcoastrealty.org. The post Century 21 Lighthouse Realty And First Coast Realty Partner appeared first on RISMedia......»»

Category: realestateSource: rismediaJun 24th, 2022

These States Have the Highest Concentration of Vulnerable Housing Markets

A new report shows that New Jersey, Illinois and inland California had the highest concentrations of the most at-risk markets in the first quarter of 2022—with the biggest clusters in the New York City and Chicago areas, according to ATTOM’s latest Special Housing Risk Report, released Wednesday. The report, which spotlights county-level housing markets around… The post These States Have the Highest Concentration of Vulnerable Housing Markets appeared first on RISMedia. A new report shows that New Jersey, Illinois and inland California had the highest concentrations of the most at-risk markets in the first quarter of 2022—with the biggest clusters in the New York City and Chicago areas, according to ATTOM’s latest Special Housing Risk Report, released Wednesday. The report, which spotlights county-level housing markets around the United States that are more or less vulnerable to declines, based on home affordability, unemployment and other measures, also showed that southern states were less exposed. The top three states had 34 of the 50 counties most vulnerable to the potential declines, the report stated. The 50 most at-risk included eight counties in the Chicago metropolitan area, six near New York City and 10 sprinkled throughout northern, central and southern California. Elsewhere, the rest of the top 50 counties were scattered mainly along the East Coast and in the Midwest. They included three each in the Cleveland, Ohio, and Philadelphia, Pennsyvania, metropolitan areas, plus two of Delaware’s three counties. At the other end of the risk spectrum, the South had the highest concentration of markets considered least vulnerable to falling housing markets, according to the report. “While the housing market has been exceptionally strong over the past few years, that doesn’t mean there aren’t areas of potential vulnerability if economic conditions continue to weaken,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “Housing markets with poor affordability and relatively high rates of unemployment, underwater loans, and foreclosure activity could be at risk if we enter a recession or even face a more modest downturn.” The report shows that New Jersey, Illinois, and California had the highest concentrations of the most at-risk markets, with 34 out of the top 50 across them. Among these were eight counties in the Chicago metropolitan area: Cook, De Kalb, Kane, Kendall, Lake, McHenry and Will counties in Illinois, plus Lake County, Indiana. Six of the New Jersey counties (Bergen, Essex, Ocean, Passaic, Sussex and Union) are part of the New York City metropolitan area, while two (Camden and Gloucester) are part of the Philadelphia area. The 10 California counties in the top 50 lack the same geographic confluence, including counties in North (Butte, San Joaquin, Shasta and Solano Counties), South (Kern county), and Central California (Fresno, Kings, Madera, Merced, Stanislaus Counties). The remainder of the top 50 counties were scattered throughout the East Coast and the Midwest. These included Cuyahoga, Lake and Lorain counties near Cleveland, Ohio, and Philadelphia county in Pennsylvania. Further south, two of Delaware’s three counties (Kent and Sussex) made the list, as did Baltimore, Charles, and Prince George’s counties in Maryland. Go any further south, though, and the risk starts declining. Southern states had the highest concentration of markets considered least vulnerable to falling housing markets: 26 of the top 50. For comparison, only five of the least vulnerable were in the Northeast. Tennessee had eight, including five in the Nashville metropolitan area (Davidson, Rutherford, Sumner, Williamson and Wilson counties), while Virginia had five, including three in the Washington, DC area (Arlington, Fairfax and Loudoun counties). In the Midwest, Wisconsin showed the least vulnerability, with four counties (Brown, Dane, Eau Claire, and Winnebago) in the top 50. What sets the most and least at-risk markets apart? The counties most at-risk have higher levels of unaffordable housing, underwater mortgages, foreclosures and unemployment, both in comparison to the least vulnerable counties and national averages. In 25 of the top 50 most vulnerable counties, home ownership costs on median-priced single-family homes consumed more than 30% of average local wages. The highest percentage in those markets was in San Joaquin County, where 48.9% of average local wages were needed for home ownership costs. Nationally, 6.5% of mortgages are underwater. In 22 of the 50 most at-risk counties, 10% of mortgages fell into that category, while in 31 of the 50 least vulnerable counties, less than 5% did. Less than one in 5,000 residential properties faced foreclosure during Q1 2022 in 27 of the 50 least at-risk counties, while more than one in 1000 properties did in 29 of the 50 most at-risk counties. The nationwide foreclosure average is one in 1,795 homes. The March 2022 unemployment rate was at least 5% in 29 of the 50 most at-risk counties, while it didn’t reach 5% in any of the 50 least at-risk counties; the nationwide unemployment rate was 3.6%. These disparities come at an uncertain time for the housing market. While it has been on the rise throughout the COVID-19 pandemic, it shows recent signs of cooling, owing to a rise in home-price value and interest rates. “The housing market has been one of the strongest components of the U.S. economy since the onset of the COVID-19 pandemic,” said Sharga. “But Federal Reserve actions aimed at bringing inflation down from its 41-year high are having an immediate impact on home affordability, sales, and pricing. Whether the Fed can execute a relatively soft landing, or inadvertently steer the economy into a recession will determine the fate of the housing market over the next 12-18 months.” The post These States Have the Highest Concentration of Vulnerable Housing Markets appeared first on RISMedia......»»

Category: realestateSource: rismediaJun 22nd, 2022

Futures, Cryptos Surge As Dip Buying Turns Into "Nasty Squeeze"

Futures, Cryptos Surge As Dip Buying Turns Into "Nasty Squeeze" Following a relentless rout that erased nearly $2 trillion in market value from the S&P 500 last week, US equity futures have surged, extending their Monday holiday gains just as predicted on Sunday when we said that a "Nasty Squeeze" was on Deck following last week's "Second Largest Ever" shorting by hedge funds. Nasdaq 100 futures rose as much as 2.2% before trading 1.7% higher as major US tech and internet stocks advanced, poised to extend Friday’s gains; shares of Tesla and Twitter also rose following billionaire Elon Musk’s comments at the Qatar Economic Forum; S&P 500 futures gained 1.8%; the cash market was closed on Monday for a holiday. Asian and European stocks also advanced as did bitcoin which jumped above $21K after sliding below $18K briefly on Saturday. Meanwhile Treasuries and the US Dollar retreated. US stocks came under renewed pressure last week, with the S&P plunged into bear market territory amid surging inflation and fears that aggressive rate hikes by the Federal Reserve will push the economy into a recession. The S&P 500 is set for an 11% drop in June, poised for the worst month since March 2020, which marked the lows of the pandemic selloff. Sentiment was somewhat boosted by Biden’s Monday comments on the economy in which he said that a recession isn't "inevitable" (what else will he say) but strategists have warned of more volatility ahead. “Even if the mid-term investing landscape remains blurry to most market operators at the beginning of this summer season, some investors looking for opportunities to buy shares at a discounted price have been reassured,” said Pierre Veyret, a technical analyst at ActivTrades. “The fact central banks are moving quickly towards a super hawkish stance in order to tame inflation is also perceived as good news by some.” In premarket trading, bank stocks also pushed higher amid a broader rebound in risk assets. In corporate news, HSBC has lost two senior investment bankers in Asia as global banks compete for financial technology talent and dealmaking slows. Meanwhile, the UK’s Payment Systems Regulator will focus a pair of market reviews on the rising card fees charged by Visa and Mastercard. Tech names were also solidly higher; notable movers included Apple +2.4%, Microsoft +2%, Amazon.com +2.6%, Alphabet +2.6%, Meta Platforms +2.1%, Nvidia +3.1% premarket; all six stocks closed higher on Friday, while US markets were closed for a holiday on Monday. Stocks related to cryptocurrencies were also indicating a rally as the price of Bitcoin continues to hold above $20,000 amid a tentative recovery and hopes that prices have bottomed. Meanwhile, Revlon surged as much as 27% in premarket trading, extending Friday’s rally after the cosmetics firm filed for Chapter 11 bankruptcy. Here are some other notable premarket movers: Tesla (TSLA US) and Twitter (TWTR US) shares rose in premarket trading on Tuesday after billionaire Elon Musk said the CEO label at the social media firm was less important than driving the product and that Tesla will cut its salaried workforce by about 10% over  the next three months. Tesla rose 3.1% and Twitter was up 1.2% in premarket trading Revlon shares surge as much as 27% in US premarket trading, extending Friday’s rally after the cosmetics firm filed for bankruptcy. Major US technology and internet stocks advanced in premarket trading on Tuesday, poised to extend Friday’s gains. Apple (AAPL US) +2.4%, Microsoft (MSFT US) +2%, Amazon.com (AMZN US) +2.6%, Alphabet (GOOGL US) +2.6% Spirit (SAVE US) shares jump 13% in US premarket trading, to $24, after JetBlue (JBLU US) raised its offer to $33.50 per share from $31.50 on June 6, the latest move in a multi-billion dollar takeover contest with rival Frontier (ULCC US). Arrival shares jump 8.6% in US premarket trading after the electric- vehicle maker announced that its zero-emission van has achieved EU certification and received European Whole Vehicle Type Approval. US-listed Chinese stocks are mostly higher in premarket trading, tracking a two-day 2.3% rise in the Hang Seng Tech Index. Alibaba (BABA US) +4.6%, Baidu (BIDU US) +3.5%, Pinduoduo (PDD US)+3.3% Stocks related to cryptocurrencies rise on Tuesday in US premarket trading as the price of Bitcoin continues to hold above $20,000 amid a tentative recovery and hopes that prices have bottomed. Riot Blockchain (RIOT US) +5.6%, Coinbase (COIN US) +4.7%, MicroStrategy (MSTR US) +5% Citi cuts ratings on International Paper Co. and WestRock to neutral from buy, citing increasing questions about demand as supply additions loom. International Paper falls 1.1% in premarket trading, WestRock -1.5% Keep an eye on Maxar shares as Wells Fargo said the stock is its top pick in the burgeoning space sector, initiating it at overweight, Rocket Lab at equal-weight and Virgin Galactic at underweight. Adobe (ADBE US) shares may be in focus today as the stock was downgraded to equal-weight and given Street-low $362 target from $591 by Morgan Stanley, on expectation of a slowing structural growth profile for the computer software company. After unexpectedly accelerating to a fresh 40-year high in May, US consumer price growth is seen slowing, with a Bloomberg survey of economists predicting 6.5% by the fourth quarter and to 3.5% by the middle of next year. Yet fears are rampant that Federal Reserve policy makers intent on cooling price pressures will go too far and trigger an economic slowdown. Strategists at Morgan Stanley and Goldman Sachs Group Inc. warned equities may have further to fall to fully price in the risk of recession, reflecting wider skepticism about Tuesday’s rebound. “We think equities will struggle to rebound sustainably until earnings expectations reset lower and/or central banks turn more dovish, which seems unlikely for now,” said Emmanuel Cau, head of European equity strategy at Barclays Plc. European stocks also extended their recent recovery, with the region’s benchmark Stoxx 600 Index rising 1%, led by gains in basic resources and chemical companies’ shares. Consumer discretionary, chemicals and autos also trade well. CAC 40 outperforms. Leonardo jumps as much as 9.7% in Milan trading after its DRS unit agreed to buy Israeli radar-maker RADA Electronic in an all-stock transaction. Valneva rises as much as 23% after CEO Franck Grimaud said the company’s Lyme disease vaccine has the potential of becoming a “blockbuster” with sales of more than 1 billion euros. K+S and OCI shares gain after JPMorgan said valuations are “compelling” and fundamentals remain positive. European fertilizer shares had dropped recently because of rising gas prices. OCI rises as much as 4.6%; K+S +6.3% Air Liquide climbs as much as 3.9%, after the French industrial gas company signed a long-term power purchase agreement with Vattenfall. Mithra rises as much as 21% after the pharmaceutical company said it received subscription commitments for 3.87m new shares at an issue price of EU6.07 apiece, representing a 5% discount to last close. Richemont and Swatch advance after Swiss watch exports for the month of May showed strong demand versus the year-earlier period in the US and Japan as well as in European countries such as France and the UK. Luxury peers also trading higher in a wider rebound. Richemont gains as much as 2.8%, Swatch +2.8%, Hermes +3.3%, LVMH +3.7% European apparel retail shares drop after JPMorgan downgrades Asos, About You, Boohoo and Primark owner AB Foods to neutral from overweight, citing the cost of living crisis with cracks emerging in discretionary spending. Asos declines as much as 5.1%, Boohoo -4.8%, About You -4.3%, AB Foods -3.2% Proximus and Telenet slide after a statement by the Belgian telecom regulator showed that new entrant Citymesh partnered with Romanian carrier Digi Communications and acquired spectrum across various bands. Proximus shares fall as much as 7.8%, Telenet -3.9% Earlier in the session, MSCI’s Asia-Pacific index snapped an eight-day slide to add more than 1% as Asian equities headed for their biggest gain this month. The MSCI Asia Pacific Index climbed as much as 1.8%, set to snap an eight-day losing streak, with financial and tech stocks among the biggest contributors to its advance. The US president spoke overnight after a conversation with former Treasury Secretary Lawrence Summers, as the White House and congressional Democrats are in talks on legislation that aims to fight inflation. Benchmarks in Taiwan, Japan and Hong Kong led gains in the region. Australia’s index advanced for the first time in days after central bank chief Philip Lowe signaled he will only raise interest rates by 25-to-50 basis points at the July meeting. Chinese shares edged lower after recent gains.  “It’s a respite, not a rebound,” said Charu Chanana, a market strategist at Saxo Capital Markets. “We are still in a bear market that is facing a double whammy of Fed tightening and building recession fears, and the second-quarter earnings season is likely to be particularly painful for the markets” due to cost pressures, she added.  Valuations for the MSCI Asia gauge have continued to slide toward pandemic lows, with the index down 18% this year. Still, it’s outperforming a measure of global shares, supported by a rally in Chinese equities this month as the country emerges from Covid-triggered lockdowns. Japanese stocks advanced as investors weighed the impact of the yen’s weakness and the extent of the recent selloff. The Topix Index rose 2% to 1,856.20 as of market close Tokyo time, while the Nikkei advanced 1.8% to 26,246.31. Sony Group Corp. contributed the most to the Topix Index gain, increasing 4%. Out of 2,170 shares in the index, 2,023 rose and 108 fell, while 39 were unchanged. “Stocks that are expected to have an upward revision from the weak yen may be firm,” said Mitsushige Akino, a senior executive officer at Ichiyoshi Asset Management. In Australia, the S&P/ASX 200 index rose 1.4% to close at 6,523.80, snapping a seven day losing steak. The benchmark was led by gains in banks and miners, with the financials sub-gauge rising the most since March 10.  In early trade, Australia’s central bank Governor Philip Lowe said he didn’t see a recession on the horizon for the nation.  In New Zealand, the S&P/NZX 50 index rose 1.1% to 10,701.59 India’s benchmark share index posted its biggest two-day advance since May 30, boosted by a recovery in information technology stocks and as investors looked for bargains after a sharp selloff last week.  The S&P BSE Sensex rose 1.8% to close at 52,532.07 in Mumbai, taking its two-day advance to 2.3%. The NSE Nifty 50 Index advanced 1.9%. All of the 19 sectoral indexes compiled by BSE Ltd. gained, led by a measure of oil & gas companies. “Crude prices have corrected by almost 10% from its recent peak, providing some breather to the Indian market,” Motilal Oswal Financial analyst Siddhartha Khemka wrote in a note.   Reliance Industries contributed the most to the Sensex’s gain, increasing 1.6%. All but one of 30 shares in the Sensex index rose. Of the top ten performers on the measure, half were information technology companies, led by Tata Consultancy Services Ltd. that clocked its biggest advance this month.  In rates, treasuries were cheaper across the curve as trading resumed after Monday’s US holiday; cash USTs bear steepened, but trim losses after cheapening ~5bps at the Asia reopen.  Long-end leads losses with stock futures rising after last week’s rout. US yields are ere cheaper by as much as 6bp at long end, steepening 2s10s by nearly 3bp, 5s30s by nearly 4bp; 10-year, higher by ~5bp at 3.27% lags bund and gilts by 3bp and 4.5bp while Italian bonds outperform Treasuries by 12bp in the sector. Bunds and gilts outperform Treasuries, while Italian bonds extend recent gains after ECB’s Olli Rehn reiterated determination to combat unwarranted spikes in borrowing costs for some of the region’s most vulnerable economies.  That said the ECB has yet to disclose said measures, a move which most agree will lead to selling the news. Gilts bull flatten, 10y yields drop 4bps after stalling near 2.6%. Bunds are comparatively quiet. Shorter-maturity Australian bonds rallied after central bank chief Philip Lowe said interest rates are likely to rise by 50 basis points at most in July. Money markets subsequently scrapped bets he would track the Federal Reserve with a 75 basis-point move. Japanese government bonds were mixed after a five-year note sale that drew the weakest demand in more than two years in the aftermath of wild price swings in futures that have made some traders uneasy about their exposure to cash bonds. In FX, Bloomberg dollar spot index fell 0.3% as the greenback weakened against all of its Group-of-10 peers apart from the yen. JPY is the weakest in G-10, plunging to a fresh 24 year low of 136. NOK and SEK outperform. The euro advanced and European bonds rallied, led by the front end even as ECB Governing Council Member Peter Kazimir said negative rates must be history by September. Governing Council member Olli Rehn separetely said that “there has been good reason to expedite the normalization of monetary policy”. The pound extended gains amid broad dollar weakness while UK government bonds inched up. BOE Chief Economist Huw Pill said policy makers would sacrifice growth in order to bring down inflation, saying there’s a risk of prices developing a “self-sustaining momentum. In commodities, WTI drifted 2.3% higher to trade near $112. Most base metals trade in the green; LME zinc rises 2.8%, outperforming peers. LME aluminum lags, dropping 0.3%. Spot gold is little changed at $1,838/oz. Bitcoin is bid and above the USD 21k mark, after last week's slip to a sub-USD 18k low. Elon Musk says he intends to personally support Dogecoin, via BBG TV. Coinbase (COIN) says connectivity issues across Coinbase and Coinbase Pro could cause failed trades and delayed transactions; issue was subsequently resolved. To the day ahead now, and data releases include US existing home sale for May, as well as the Chicago Fed’s national activity index for the same month. Otherwise, central bank speakers include the Fed’s Barkin and Mester, the ECB’s Rehn and the BoE’s Pill. Market Snapshot S&P 500 futures up 1.9% to 3,744.50 STOXX Europe 600 up 1.0% to 411.06 MXAP up 1.5% to 158.77 MXAPJ up 1.5% to 528.18 Nikkei up 1.8% to 26,246.31 Topix up 2.0% to 1,856.20 Hang Seng Index up 1.9% to 21,559.59 Shanghai Composite down 0.3% to 3,306.72 Sensex up 2.2% to 52,741.19 Australia S&P/ASX 200 up 1.4% to 6,523.81 Kospi up 0.7% to 2,408.93 German 10Y yield little changed at 1.76% Euro up 0.5% to $1.0567 Brent Futures up 1.2% to $115.53/bbl Brent Futures up 1.2% to $115.52/bbl Gold spot down 0.2% to $1,835.31 U.S. Dollar Index down 0.61% to 104.06 Top Overnight News from Bloomberg UK rail workers began Britain’s biggest rail strike in three decades after unions rejected a last-minute offer from train companies, bringing services nationwide to a near standstill. Britain’s local authorities say they can’t afford to pay a mandated increase in the legal minimum wage over the next year without a £400 million cash injection from the national government A majority of European businesses are worried about their ability to meet employee demands for higher wages amid the current spike in inflation, according to a regional survey by Intrum AB Companies in Germany, the UK, France, Spain and Italy are the most distressed since August 2020, according to the Weil European Distress Index. The study aggregates data from more than 3,750 listed European firms A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks gained across amid a broad constructive global risk tone despite a lack of fresh macro drivers and the recent holiday closure in the US, with Bitcoin and Chinese commodity prices also stabilising after the recent tumultuous price action. ASX 200 was led higher by the energy sector and after RBA's Lowe effectively ruled out a 75bps hike next month. Nikkei 225 outperformed and reclaimed the 26,000 level amid a predominantly weaker currency. Hang Seng and Shanghai Comp. were positive with sentiment in Hong Kong underpinned by news the SAR is to propose a quarantine-free business travel corridor with mainland China, while mainland bourses lagged with the US ban on imports from Xinjiang taking effect from today. Japan's PM Kishida says rapid JPY weakening is a source of concern, must closely watch FX moves and consider monetary policy and FX measures separately. Top Asian News Chinese Developer Accepts Wheat, Garlic as Payment to Woo Buyers China Junk Bond Selloff in New Phase With Record Fosun Rout Gold Steady as Traders Weigh Central Bank Plans to Hike Rates Australian Tesla-Supplier Eyes First Lithium Exports Over- Optimism Among China Steel-Makers Behind Iron Ore’s Plunge European bourses are firmer and building on Monday's upside, Euro Stoxx 50 +1.1%; thus far, newsflow has largely focused on familiar themes. Additionally, participants are awaiting the return of the US after Monday's market holiday. Currently, ES +1.7% with the region incrementally outperforming European peers. Elon Musk says there a still a few unresolved matters with Twitter (TWTR) including the number of spam users, via BBG TV; still awaiting a resolution, very significant. Adds, they are reducing the salaried workforce of Tesla (TSLA) by circa. 10% over the next three-months. Top European News French President Macron will invite all parties able to form a group in the new parliament for talks on Tuesday and Wednesday, according to Reuters. BDI revises down 2022 German GDP forecasts: 1.5% (prev. 3.5%); return to pre-COVID level expected at end-2022 at the earliest Central Banks ECB’s Lane said very high inflation means there is a risk inflation psychology could take hold and said the larger increment for rate increase in September does not represent a red alert assessment of inflation. Lane also commented that he doesn’t see a situation where they would need to revisit the plan for a July decision and there is no preview beyond September of what will be the appropriate pace of tightening, according to Reuters. ECB’s Villeroy said the new instrument should be available as much as necessary to make the no-limit commitment to protect the Euro very clear and the more credible such an instrument is, the less it may have to be used in practice. Villeroy added the new instrument will have rules but there will be elements of judgement also and said they would not necessarily need to hold purchases of government or private sector securities to maturity, according to Reuters. ECB's Rehn says EZ inflation pressured are broader and stronger; very likely the September move is more than 25bp in magnitude. BoE's Pill says if there is evidence of persistent price pressures, the MPC is certainly prepared to act, expects further tightening in the coming months, need to consider the exchange rate when assessing inflationary pressures. Worries that using monetary policy to stabilise the FX rate in the short-term would be a distraction from the BoE's goals. HKMA purchases HKD 9.6bln from the market, as the HKD hits the weak-end of the trading range. FX Euro firm as risk revival continues and ECB’s Rehn says 50bp hike in September is highly probable, EUR/USD eyeing 1.0600 after breaching 1.0550, but could be capped by 1bln option expiry interest between 1.0575-85. Sterling rebounds ahead of CBI industrial trends and after BoE chief economist Pill underlines willingness to act if price pressures prove persistent; Pound probes 1.2300 vs Dollar as DXY slips further from recent peaks through 104.000. Loonie and Nokkie boosted by firmer crude prices, as former awaits Canadian retail sales data; USD/CAD close to 1.2900 vs circa 1.3078 double top, EUR/NOK sub-10.4000 within 104.4200+/10.3400 range. Kiwi and Aussie underpinned by improvement in risk appetite, but hampered as NZ consumer sentiment slides to record low and RBA Governor Lowe pushes back on the amount of 2022 tightening priced in at present; NZD/USD hovers above 0.6350 and AUD/USD shy of 0.7000. Franc and Yen remain divergent with SNB and BoJ policy paths, latter largely ignoring latest verbal intervention; USD/CHF pivots 0.9650 and USD/JPY back above 135.00. Israel PM Bennett and Foreign Minister Lapid agreed on dissolving the Knesset and going for an early election, while the vote will take place next week and Lapid will become PM once the vote passes, according to Walla News. Fixed Income Debt divergent and erratic awaiting the return of US cash markets from long holiday weekend. Bunds hold within 143.05-144.01 range and Gilts between 111.11-68 parameters. Treasury futures retreat and curve flits from marginal flattening to steepening ahead of US existing home sales and more Fed speak via Mester and Barkin Commodities WTI and Brent are bid amid broader risk sentiment with newsflow focusing on familiar themes primarily around the reduction in Russia's gas supply to Europe. Thus far, Brent has tested but failed to connivingly breach the USD 116.00/bbl mark ahead of touted USD 116.37/bbl resistance. US Treasury Secretary Yellen said she does not see resuming the Keystone XL oil pipeline as a short-term measure that can address high oil prices, while she added it would take years to have an impact. Yellen also commented that evidence is mixed on the level of pass-through from a gasoline tax holiday to lower prices and said that an exception or ban on insurance for certain Russian oil shipments would effectively provide a price cap on oil, according to Reuters. Brazilian Economy Minister Guedes said Brazil is part of the western energy security, particularly for Europe, while he added that privatising and moving Petrobras to Novo Mercado would increase its market cap from BRL 450bln to BRL 750bln. Guedes added that they will conduct new measures again if the war in Ukraine is escalating, according to Reuters. PetroEcuador may have to stop exports if protests continue and it declared a force majeure to avoid contract penalties, according to Reuters. Vitol CEO says markets are faced with underinvestment and falling production capacity for crude and there is a relatively tight refining situation, via Reuters; if China exports some more products, the tightness felt today won't be felt. Denmark's energy agency declared an 'early warning' stage of gas supply preparedness, according to Reuters. German regulator says they are not in a hurry to declare the highest gas emergency level yet, via Reuters citing BR; however, Sweden declares an "early warning" stage of gas supply preparedness for Western and Southern parts of the nation. Codelco's union presidents ratified the start of a national strike beginning on Wednesday, according to Reuters; an update which, alongside broader risk, is supporting LME Copper. US Event Calendar 08:30: May Chicago Fed Nat Activity Index, est. 0.47, prior 0.47 10:00: May Existing Home Sales MoM, est. -3.7%, prior -2.4% 10:00: May Home Resales with Condos, est. 5.4m, prior 5.61m Central Banks 11:00: Fed’s Barkin Interviewed During NABE Event 12:00: Fed’s Mester Speaks at Women in Leadership Event 15:30: Fed’s Barkin Speaks in Richmond DB's Jim Reid concludes the overnight wrap I’ll be publishing my latest monthly chartbook later today so keep an eye out for it. It will include the slides for last week’s webinar on the default study “The end of the ultra-low default world”. See here for the webinar replay and here for the original default study. Welcome to the longest day of the year although most in markets will already say we've had numerous of those already so far this year. Actually if you're outside of London, trying to get in it could be a very, very long day as the UK is today gripped by the first of three alternate day rail strikes. There is a tube strike today thrown in for good measure. It does seem industrial relations with the government are on a knife edge across the UK as at least 3 million workers across different professions are considering industrial action at the moment over pay and working conditions. So this could become a much bigger story if tensions are not eased. With inflation this high it's not easy to see how they can be without big pay rises being offered. However on this day of wall to wall sun (sorry to the Southern Hemisphere readers), there has been a little more light than dark in markets over the last 24 hours after what was the worst week for global equities since March 2020. The next major event(s) to look forward to are Fed Chair Powell’s congressional testimonies from tomorrow. To be honest though, its been a fairly quiet start to the week given the US holiday yesterday, with the biggest news instead being a fresh rise in European sovereign bond yields after President Lagarde reiterated the ECB’s intentions to start hiking next month, and also shone a bit more light on their plans to deal with any potential fragmentation. We’ll start with those remarks from Lagarde, who appeared in a hearing at the European Parliament yesterday and spoke strongly against any potential fragmentation in the Euro Area. Indeed, she said that “we need to be absolutely certain” that monetary policy was being transmitted to the different Euro Area countries and went as far to say that it was “right at the core of the mandate”, whilst adding “anybody who doubts that determination will be making a big mistake”. So not quite “whatever it takes” but along the same lines. Given the ECB has promised to deal with any fragmentation, that should make life easier for them when it comes to raising rates, and European sovereign bond yields responded accordingly yesterday. Looking at the specific moves, yields on 10yr bunds (+9.0bps), OATs (+11.8bps) and BTPs (+12.3bps) all moved noticeably higher, although by the standards of last week that seemed quite modest given that 10yr bund yields had seen absolute moves of 11bps in either direction on 3 out of 5 days last week. When it came to bonds though, it was UK gilts who were one of the biggest underperformers yesterday after we heard from one of the more hawkish members of the Bank of England’s MPC. Catherine Mann (who was in the minority that favoured of a 50bps move last week) said in a speech that “the incoming data on inflation show increasingly domestic embeddedness, persistence, and momentum”. Furthermore, she also warned about the risk of embedded domestic inflation being “further boosted by inflation imported via a Sterling depreciation”. Against that backdrop, 10yr gilt yields rose by +10.6bps to close above 2.6% for the first time since 2014, whilst overnight index swaps are continuing to price in a more aggressive response from the BoE after the next meeting, with 50bp moves priced in for each of the next 3 meetings, which would be the fastest pace of hikes since they gained operational independence in 1997. In spite of the sovereign bond selloff, equities put in a much better performance yesterday, with the STOXX 600 (+0.91%) seeing a broad-based advance that was supported by all the main sector groups. Other indices on the continent also moved higher, including the FTSE 100 (+1.50%), the DAX (+1.06%) and the FTSE MIB (+0.99%). The worst performer on a relative basis was France’s CAC 40 (+0.64%), which struggled following the news that President Macron had lost his parliamentary majority, which will make passing his agenda much more difficult in the coming years. See our economists’ piece on the topic here. With the US holiday we only had futures to look at, but those on the S&P 500 had moved around +1% higher by the time of the European close. They are +1.62% higher this morning with the NASDAQ 100 futures (+1.71%) also meaningfully higher. Meanwhile, Fed funds futures were again moving in the direction of pricing in a more aggressive path of rate hikes, with the implied rate by the December meeting up +7.18bps to 3.625%, albeit still beneath their closing peak of 3.72% just before the Fed meeting, which meant that Treasury futures were also pointing to fresh declines yesterday as well. Asian equity markets are relatively buoyant this morning with the Nikkei (+1.76%) leading the pack followed by the Hang Seng (+1.42%). In mainland China, the Shanghai Composite (+0.18%) and CSI (+0.12%) are also trading in positive territory whilst the Kospi (+1.03%) is sharply higher in early trade. Elsewhere, the meeting minutes from the Reserve Bank of Australia (RBA) released this morning indicated that the central bank is leaning towards more monetary policy tightening over the coming months. The minutes also revealed that inflation was expected to increase to 7% by the end of the year due to pandemic-related supply chain disruptions, before coming back towards the 2-3% inflation range in 2023. Meanwhile, the RBA Governor Philip highlighted that interest rates were still "very low" but watered-down expectations of 75bps rate hikes thus signaling a 25 or 50bps move at the July meeting. On the FX side, the Aussie Dollar did witness a sharp dip during the RBA Governor’s Q&A session but is reversing losses, trading +0.35% at 0.697 per US dollar, as I type. Elsewhere the Japanese yen has remained under pressure at 135.03 per dollar, not far off a 24-year low of 135.58 hit early last week. Separately, oil prices are higher this morning with Brent futures (+1.04%) at $115.32/bbl and WTI futures increasing +1.79% to $111.52/bbl. To the day ahead now, and data releases include US existing home sale for May, as well as the Chicago Fed’s national activity index for the same month. Otherwise, central bank speakers include the Fed’s Barkin and Mester, the ECB’s Rehn and the BoE’s Pill. Tyler Durden Tue, 06/21/2022 - 08:02.....»»

Category: dealsSource: nytJun 21st, 2022

European Stocks, US Futures, Cryptos All Rise With US Out On Holiday

European Stocks, US Futures, Cryptos All Rise With US Out On Holiday Asian stocks dipped, and European bourses gained alongside US equity futures and cryptos in subdued, choppy trading on Monday as fears over an imminent recession faded away briefly and investors bought the dip after last week's jarring selloff, and near record shorting... ... expecting markets to bounce amid speculation the rout had gone far enough to price in concerns about rising rates and slowing growth. S&P futures rose 0.7% or 25 points in muted trading, while Nasdaq 100 and Dow futures were up 0.8 and 0.5% respectively, however cash stocks are closed Monday for the Juneteenth market holiday.  Bitcoin gyrated around the key $20,000 mark, rebounding above the "nice, round number" after a weekend rout dragged bitcoin briefly below $18,000 amid widespread margin-call driven liquidations. A volatile crypto slump has become emblematic of the pressure on a range of assets from sharp Federal Reserve interest-rate hikes to tame high inflation. Volatility measures remained elevated as investors look for an entry point into equity markets roiled by soaring price pressures and worries that aggressive monetary tightening will tip major economies into recession. Like a broken record, JPMorgan strategists said pressure on stocks should ease in the second quarter as inflation moderates, which of course they say every other week, even as others - including Morgan Stanley - cautioned that more losses may be in store. “Both prolonged inflation and/or a sharp increase in rates from central banks will have a deep impact on growth perspectives,” said Jean-François Paren, global head of market research at Credit Agricole CIB. “If anything, current valuations are more the ‘exit point’ than the ‘entry point’.” European equities rebounded following the worst week for the gauge since March to trade near session highs with the Euro Stoxx 600 rising 0.5% with peripheral indexes faring slightly better. Banks, energy and autos are the best performing sectors.  Basic resources underperformed amid a slump in raw-material prices. Swedish engineering group ABB Ltd. declined after postponing a listing of its electric-car charging business, citing volatile market conditions. France’s equity benchmark lagged after President Emmanuel Macron lost his absolute majority in parliament, putting his reform agenda in peril. V2X drops back on to a 29-handle. Here are some of the most notable European movers: Renault shares rise as much as 7.6% after Jefferies upgraded the shares to buy, saying the carmaker offers a combination of strategic initiatives, capital release, near-zero core value and cost-driven earnings upside. Axfood gains as much as 7.7%, the most since March 23, as Handelsbanken upgrades the food retailer to buy as a “top-notch inflation hedge,” and sees strong earnings support ahead. Travel and Leisure stocks are among the best-performing subgroups on the wider Stoxx 600 after IATA predicted that the airline industry will return to profit next year. Among best performers on the SXTP are TUI, the world’s biggest tour operator, +5.6%; British Airways owner IAG +3.1%; Lufthansa +3.5%; Ryanair +2% Interparfums gains as much as 4.5% after Oddo BHF upgraded the stock to outperform from neutral, citing cheap valuation and good business levels. Varta jumps as much as 5% after Goldman Sachs initiates coverage with a buy rating, saying EV battery order announcements could be a major catalyst for a stock trading near an all-time low on enterprise value-to-Ebitda multiple basis. Euromoney rises as much as 29% after the information service business received an approach from Astorg Asset Management and Epiris regarding a possible cash offer. Kingspan plunges as much as 16% after its pre-close trading update, with the focus on declining orders that analysts say underline slowing demand, with peers such as Rockwool falling, too. Assa Abloy drops as much as 4.8%, the biggest laggard on Stockholm’s large-cap OMXS30 index, after Pareto Securities said it expects demand for the Swedish lock maker’s products to drop. EasyJet falls as much as 4.2% as analysts expect downgrades to consensus after the low-cost carrier cut 3Q and 4Q capacity outlook after cutting flights amid disruptions. Societe Generale and BNP Paribas retreat in Paris trading after President Emmanuel Macron and his allies failed to win an outright majority in the second round of French legislative elections. Earlier in the session, Asian stocks edged lower with MSCI’s index of Asian shares dropped for an eighth day, the longest stretch since February 2020, as investors worried about the odds of a global recession amid tighter monetary policies.  The MSCI Asia Pacific Index was down 0.3%, poised for an eighth session of declines that’s the longest since early 2020. Rate-sensitive technology shares dragged on the gauge. Materials stocks also fell as a dimming outlook for demand pushed prices of iron ore and some other commodities lower.  South Korean and Japanese equities led declines in the region. Chinese stocks stood out with gains as the nation’s banks kept key lending rates unchanged, in line with the People’s Bank of China’s measured easing stance. China has kept monetary policy loose even as global central banks embraced aggressive tightening, and that divergence has been giving the nation’s equities an advantage in recent weeks. Shares of China’s power producers rally after thermal coal futures fell 4.1%, the most since March 10. , amid a gloomy demand outlook. Iron ore and coking coal also tumbled. Iron ore is headed for its eighth straight day of losses, the longest falling streak since September. Chinese prices of coking coal used for steel-making have also slumped since the middle of last week, falling about 12%. The Asian stock benchmark is at a two-year low, tracking broader risk-off sentiment as concerns over global growth and inflation remain high. Monetary authorities’ focus on battling inflation is increasing worries that tightening may eventually push major economies into recessions.  Still, the MSCI regional gauge has performed better than its global peers this month, supported by China resilience.  While the recovery road may still be bumpy, “China this year could give the market a surprise,” Yifan Hu, regional chief investment officer and head of Asia Pacific macroeconomics for UBS Global Wealth Management, said in a Bloomberg TV interview. “Monetary policy is quite relaxed, and the economy is recovering. So I think as long as there’s no prolonged city-level lockdowns in the second half, we are positive for China’s market to continue to rally.” Japanese stocks fell amid growing concerns the US economy will enter a recession as the Federal Reserve tightens monetary policy.  The Topix fell 0.9% to 1,818.94 at market close in Tokyo, while the Nikkei 225 declined 0.7% to 25,771.22. Shin-Etsu Chemical contributed the most to the Topix’s decline, decreasing 6.4%. Out of 2,170 shares in the index, 423 rose and 1,679 fell, while 68 were unchanged. “Investors are concerned about holding stocks as an asset class with US recession fears exceeding 50%,” said Masafumi Oshiden, a fund manager at BNY Mellon Asset Management. In FX, US cash Treasuries are closed for holiday. As such, European fixed income was relatively quiet with Bunds bull-steepening and richening ~3bps across the short end with money markets slightly trimming the policy tightening priced by year end. Gilts bear-flatten, the 2y yield rising 3bps near 2.23%. T-note futures drift sideways, cash USTs remain closed for US holiday. Peripheral spreads are generally steady. French bonds drop, leading semi-core underperformance after President Macron failed to win an absolute majority in Sunday’s Parliamentary elections. In FX, the Bloomberg dollar index dropped 0.3% after rising last week to the highest since April 2020, while the Norwegian krone outperformed along with commodity currencies as broader market sentiment revived. The greenback weakened against all of its Group-of-10 peers as haven demand declined due to a lack of trading incentives stemming from the US holiday and caution ahead of testimony from Federal Reserve Governor Jerome Powell later this week. The Norwegian krone gained as much as 1.4% against the dollar, after USD/NOK reached the highest level since 2020 last week. “The broader macro backdrop is still characterized by elevated recession risks, plus uncertainties from the Russian/Ukraine war and the challenge of controlling Covid in China,” Goldman Sachs strategists wrote in a note on Monday. “In this high risk market environment we would expect the broad dollar to remain relatively strong against most crosses” EUR/USD gained 0.3% to 1.0533: President Emmanuel Macron became the first president in decades to fail to garner an absolute majority in parliament, meaning he will have a hard time passing legislation, putting much of his agenda in peril. “The news doesn’t seem to have bothered the euro, and being more of a longer-term risk to the eurozone outlook, it is not too surprising,” say ING strategists including Francesco Pesole. “EUR/USD has once again found some anchor around the 1.0500 level, something we expect to happen over the summer months despite volatility looking likely to remain elevated” AUD/USD advances 0.8% to 0.6989 after tumbling 1.6% on Friday: “AUD led a mild improvement in pro-growth G-10 pairs, but with the US out on holidays and hawkish Fed rhetoric over the weekend, AUD remains vulnerable in a still uncertain market,” says Rodrigo Catril, a foreign-exchange strategist at National Australia Bank. USD/JPY falls 0.1% to 134.88: Prime Minister Fumio Kishida said that BOJ Governor Haruhiko Kuroda expressed his concern over currency movements during a meeting, a comment that briefly strengthened the yen on Monday. In commodities, crude futures are quiet with WTI near $109.80. Most base metals trade in the red; LME tin falls 1.7%, underperforming peers. Spot gold is little changed at $1,841/oz. There is nothing on today's calendar since US markets are close for national holiday. Tyler Durden Mon, 06/20/2022 - 07:51.....»»

Category: blogSource: zerohedgeJun 20th, 2022

Futures Rebound, Yen Crashes To End Turbulent Week On $3.4 Trillion Quad-Witch Day

Futures Rebound, Yen Crashes To End Turbulent Week On $3.4 Trillion Quad-Witch Day Ending a rollercoaster - but mostly lower - week for risk assets around the globe which saw the Fed hike the most since 1994, a shock Swiss National Bank hike and the latest boost in UK borrowing costs, as well as a bevy of central banks surprising hawkishly, stocks in Europe finally rebounded after hitting an 18 month low earlier this week, while US equity futures were bid Friday after a rout triggered by fears of recession pushed the S&P into a bear market on Monday. S&P futures rose 1% and Nasdaq futures rebounded 1.2% signaling steadier sentiment compared with Thursday’s plunge in US shares to the lowest since late 2020, after the BOJ refused to change its Yield Curve Control conditions, sending the Yen plunging, and helping the dollar snap two days of losses as Treasury yields were flat with the 10Y around 3.21%. The Stoxx Europe 600 index jumped about 1.2% after hitting its lowest level in more than a year. Friday also brings an absolutely massive triple-witching, and although Bloomberg believes that the roughly $3.2 trillion in options expiry may lead to short covering, which could bring temporary relief for the stock market... ... we disagree, as the bulk of open interest is around 4,100 or several hundred points above spot, meaning moves today will have little impact on "derivative tails wagging the dog." In any case, absent a massive 5% rally today which sends stocks into the green, the S&P is looking at being down 10 of the past 11 weeks, a feat that has been repeated just once in history: 1970. Let's go Brandon! In premarket trading, Revlon surged after a report that Reliance Industries Ltd. is considering buying the company. Major technology and internet stocks were higher, rebounding from Thursday’s rout. Apple Inc., Microsoft Corp. and Meta Platforms Inc. were among those advancing. US-listed Chinese stocks also soared in the premarket, a day after the Nasdaq Golden Dragon China Index’s 4.4% slide, with e-commerce giant JD.com (JD US) leading the pack ahead of the closely watched 618 online shopping event. Additionally, Chinese tech giants such as Alibaba surges on a Reuters report that China’s central bank has accepted Ant Group’s application to set up a financial holding company. Alibaba shares surge 11% following the report. Among other large- cap Chinese internet stocks, JD.com +9.3%, Pinduoduo +7.5%, Baidu +5.6%. Here are some of the biggest U.S. movers today: Adobe (ADBE US) shares fall 4% in premarket trading on Friday after the software company cut its revenue forecast for the full year as it expects currency fluctuations, seasonal shifts in demand and the decision to end sales in Russia and Belarus to weigh on its business. Roku (ROKU US) shares climb 3.9% in premarket trading after the company and Walmart said they entered a pact to enable streamers to purchase featured products fulfilled by Walmart directly on Roku. US Steel (X US) shares rise 5.2% in US premarket trading after the metal giant’s 2Q22 guidance came in well above consensus estimates, according to Morgan Stanley analysts led by Carlos De Alba. Rhythm (RYTM US) shares are 13% lower in US premarket trading after the company’s Imcivree injection failed to win approval for one of the two supplemental indications it sought and the company announced a financing agreement with HealthCare Royalty Partners. Revlon (REV US) shares surge 65% in premarket trading after Reliance Industries is considering buying Revlon in the US, ET Now reports, citing people familiar with the matter. Markets are rounding off a turbulent week buffeted by interest-rate increases which are rapidly draining liquidity, sparking losses in a range of assets. Global stocks face one of their worst weeks since pandemic-induced turmoil of 2020. The question is how far assets have to sink before the tightening cycle is fully priced in. Bucking the global hawkish trend, Japan, retianed super-easy monetary policy and yield curve control, defying pressure to track the global trend toward tighter settings. As a result, the Japanese yen is on course for its biggest fall against the dollar since March 2020 while Japan’s 10-year bond yield retreated below the Bank of Japan’s cap of 0.25%, after earlier hitting 0.265%, the highest since 2016. The Swiss franc surged to its highest level against the yen since 1980. “Investors have to ask themselves how long the rate-hiking cycle will go and how deep the economic slowdown will be,” said Michael Strobaek, global chief investment officer at Credit Suisse Group AG, which is overweight equities and recently closed its underweight position in bonds. “Peak hawkishness, i.e. the peak in expectations repricing, might be close. Once we are there, it is not only possible but likely that we will see a rebound in both equities and bonds. However, this rebound will be very difficult to time.” Despite the ongoing slow-motion crash, US stocks attracted another $14.8 billion in the week to June 15, their sixth consecutive week of additions, according to EPFR Global data. In total, $16.6 billion flowed into equities globally in the period, while bonds had the largest redemptions since April 2020 and just over $50 billion exited cash, the data showed. European equities climbed after a choppy start. Euro Stoxx 600 rallied 1.4%. FTSE MIB outperforms peers, adding 1.7%. European real estate companies are among the best performers, rebounding after several days of losses following concerns higher interest rates will weigh on the sector’s financing abilities. Sweden’s Samhallsbyggnadsbolaget i Norden (SBB) rises as much as 10%, Aroundtown +6.5%, Wallenstam +5.9%, Vonovia +4.9%. Here are some of the biggest European movers: Nokian Renkaat shares gain as much as 11% after the Finnish tire manufacturer raised its net sales guidance for 2022 while also keeping its profit guidance intact. Italy’s FTSE MIB index rises as much as 2%, leading gains among major European stock markets; Italy-Germany 10-year bond yield spread falls to one- month low. Best performers on the index include Campari +5.4%, Pirelli +5.3%, DiaSorin +5.1%, Recordati +4% Ferrari gains as much as 2.4% in the wake of upgrades from Intesa Sanpaolo and Banca Akros after the luxury carmaker unveiled its electrification strategy on Thursday. Glencore climbs as much as 3.9% in London after the commodities group said its first-half trading profit will be bigger than it typically reports for an entire year. Playtech rises as much as 6.4% after the gambling operator announced the deadline for TTB to make a firm offer has been extended to next month. Lisi advances as much as 9.6% after Kepler Cheuvreux upgraded the Boeing supplier to buy, saying its post-Covid recovery isn’t yet priced in. Volvo Cars falls as much as 5.4% to the lowest since April after DNB cut its recommendation on the shares to sell due to falling demand, also noting risks related to the Polestar SPAC listing. Rexel drops as much as 3.9% as Kepler Cheuvreux analyst William Mackie cuts his recommendation to hold from buy, citing the “rapidly rising probability of a recession.” Italian bonds led a rally in European debt after European Central Bank President Christine Lagarde pledged that borrowing costs of more indebted nations in the euro-area won’t be allowed to spiral out of control. Italy’s 10-year yield fell 20 basis points and German equivalents dropped six basis points. Asian stocks tumbled to a two-year low as traders fear the global rush to hike interest rates may result in a steep economic downturn.  The MSCI Asia Pacific Index slumped as much as 1.5% Friday. The measure has fallen every session this week, and is on track to post its largest weekly drop since since the early days of the pandemic in March 2020. Asia stocks have fallen along with global peers as concerns over the potential for more jumbo rate hikes by the Federal Reserve, which raised its benchmark by 75 basis points on Wednesday, triggered a broad market rout. As the global campaign to rein in decades-high inflation continues, investors worry policy tightening may become overdone and throw major economies into recessions.  Japanese shares led Friday’s slump in Asia, with the decision by the Bank of Japan to keep its ultra-loose monetary settings unchanged providing limited fillip as volatility in the yen grows. Stocks in China and Hong Kong bucked the regional selloff, as Beijing’s pro-growth policy lends support to views that Chinese equities can keep outperforming.    Read: Yen Tumbles as BOJ Stands Pat, Makes Rare Reference to FX Market “In the immediate short term (next 2-3 months), we continue to expect Asian stocks to remain volatile,” Chetan Seth, Asia Pacific equity strategist at Nomura Holdings in Singapore, wrote in a note.“However, we do expect some stabilization into late 3Q as equity valuations reset and positive catalysts emerge.” The catalysts Nomura is looking for are the Fed turning less hawkish as US inflation shows signs of softening and China loosening its Covid-Zero stance. Equity benchmarks in Australia and Vietnam were the other big losers in Asia on Friday, with each dropping more than 1.5%. Japanese stocks trimmed losses as the yen weakened after the Bank of Japan’s decision to maintain its easy-money policy.  The Topix fell 1.7% to 1,835.90 as of market close, while the Nikkei declined 1.8% to 25,963.00. Both gauges had been down more than 2.6% earlier in the day. The yen was down 1.3% to around 134 per dollar. Toyota Motor Corp. contributed the most to the Topix Index decline, decreasing 3.6%. Out of 2,170 shares in the index, 423 rose and 1,689 fell, while 58 were unchanged. The Topix fell 5.5% this week, its worst since April 2020. BOJ Holds Firm to Deepen Outlier Status, Keep Pressure on Yen “If the yen further weakens, this will help the Nikkei 225 to remain firm to some extent,” said Makoto Furukawa, chief portfolio strategist at Mitsubishi UFJ Morgan Stanley. “The Japanese stock market is not so different from the global trend, and monetary policy that comes out from the US and Europe is much more important for Japanese equities.” Key stock gauges in India completed their worst weekly declines in more than two years as spiraling inflation and rate hikes by central banks dampened the outlook for business recovery.     The S&P BSE Sensex slipped 0.3% to 51,360.42 in Mumbai, bringing its weekly decline to 5.4%, the most since May 2020. The NSE Nifty 50 Index dropped 0.4% on Friday, taking its tumble to 5.6%. Tata Consultancy Services lost 1.7% and was the biggest drag on the Sensex, which had 22 of the 30 member stocks trade lower. Fifteen of 19 sectoral indexes compiled by BSE Ltd. declined, led by a gauge of oil and gas companies.  Among central bank monetary-policy measures this week, the US Federal Reserve made its biggest increase in policy rates since 1994. India’s markets “are largely taking cues from the global markets, in absence of any major domestic event,” Ajit Mishra, vice-president research at Religare Broking Ltd. wrote in a note. Foreign institutional investors have withdrawn $25.7 billion from Indian stocks this year through June 15, and the sell-off is headed for its ninth consecutive month. “We reiterate our negative view on markets and suggest continuing with the ‘sell on rise’ approach,” according to the note. In FX, Bloomberg dollar spot index rose by around 0.4% as the greenback advanced against all of its Group-of-10 peers apart from the Swiss franc. Treasury yields rose by up to 9 bps, led by the front end. The yen was the worst G-10 performer and slumped as much as 1.8% to 134.63 per dollar after the Bank of Japan kept policy on hold, defying speculation it would follow its global peers and move toward tightening. The BOJ made a rare reference to the currency market, saying it needed to watch its impact on the economy and markets. The euro fell below $1.05 before paring, after touching an almost one-week high yesterday. European bond yields fell and investors rushed back to Italian debt for a third day after ECB President Christine Lagarde pledged that borrowing costs of more indebted nations in the euro-area won’t be allowed to spiral out of control. Sterling eased against a broadly stronger dollar, giving up some of its sharp gains made the previous day, when the Bank of England’s pledge to take a more aggressive stance against inflation boosted the UK currency. Market awaits speeches by BOE policymakers Silvana Tenreyro and Huw Pill later in the day for possible clues into the outlook for inflation and monetary policy. In rates, Treasuries are cheaper across the curve with losses led by front-end following flurry of block trade in 2-year note futures over the European session. US yields cheaper by up to 5bp across front-end of the curve, flattening 2s10s spread by 2.5bp on the day; 10-year yields around 3.22%, cheaper by 2.5bp and underperforming bunds by 7bp Italian bonds outperform after ECB President Christine Lagarde’s pledge to support borrowing costs of indebted nations in the euro-area.  Bloomberg notes five block trades in 2-year note futures for combined 25k were posted between 3:25am ET and 4:36am ET appeared skewed toward sellers, helping front-end of the cash curve underperform. IG dollar issuance slate empty so far; at least six IG issuers are said to have stood down over the past couple of days, as investors wait for market calm before re-launching deals. The German cash curve bull steepens, trading richer by ~12bps in 5s. Gilts bull flatten, with 10y yields down 8bps around this week’s lows near 2.4%. US 2s10s narrow 3bps. Peripheral spreads tighten to Germany with 10y BTP/Bund narrowing ~14bps to a one-month low near 188bps. In commodities, crude futures advance. WTI drifts 1% higher to trade near $118.75. Base metals are mixed; LME tin falls 0.9% while LME nickel gains 1.1%. Spot gold falls roughly $7 to trade near $1,850/oz Bitcoin is currently modestly firmer, but the overall sessions range is in proximity to USD 20k with the current trough at USD 20.19k. Looking at the day ahead now, and data releases include US industrial production and capacity utilisation for May, along with the final Euro Area CPI reading for May. Central bankers include Fed Chair Powell, the ECB’s Simkus and the BoE’s Tenreyro and Pill. Of note, Jerome Powell gives welcome remarks before the Inaugural Conference on the International Roles of the U.S. Dollar at 845am ET. He is not expected to discuss monetary policy. Market Snapshot S&P 500 futures up 1.0% to 3,703.75 MXAP down 1.2% to 157.22 MXAPJ down 0.4% to 521.87 Nikkei down 1.8% to 25,963.00 Topix down 1.7% to 1,835.90 Hang Seng Index up 1.1% to 21,075.00 Shanghai Composite up 1.0% to 3,316.79 Sensex little changed at 51,457.72 Australia S&P/ASX 200 down 1.8% to 6,474.80 Kospi down 0.4% to 2,440.93 STOXX Europe 600 up 1.2% to 407.54 German 10Y yield little changed at 1.66% Euro down 0.4% to $1.0502 Brent Futures up 0.5% to $120.35/bbl Brent Futures up 0.5% to $120.39/bbl Gold spot down 0.4% to $1,849.84 U.S. Dollar Index up 0.75% to 104.41 Top Overnight News from Bloomberg A small tweak to the BOJ’s bond purchase plan this week blew up an arbitrage strategy popular with overseas investors known as the basis trade. It exacerbated a supply shortage of government bonds that has ramped up pressure on domestic financial institutions, leading them to turn to the BOJ for help to relieve the strain President Joe Biden said a US recession isn’t inevitable and acknowledged that aides warned him about the inflationary risk of his flagship relief bill, while insisting that he won’t soften his stance on Russia even if it costs him re-election The WTO clinched a historic package of accords including on vaccine production and fishery subsidies, ending the trade body’s seven-year negotiating drought China’s local governments are caught in an unexpectedly severe budget squeeze, creating a dilemma for officials over whether to boost debt or tolerate weaker economic growth A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks mostly suffered firm losses amid the global risk-aversion after the recent flurry of central bank rate increases and with weak data in the US stoking recession fears. ASX 200 was led lower by underperformance in tech and the commodity-related sectors, although gold miners have weathered the storm after the recent upside in the precious metal. Nikkei 225 was pressured and failed to benefit from the BoJ decision to keep policy settings unchanged. Hang Seng and Shanghai Comp. pared opening losses amid virus-related optimism after Beijing reported zero cases outside of quarantine and with US-China defence meetings showing signs of cooling tensions. Top Asian News China in Talks With Qatar for Gas Field Stakes, Reuters Says Kuroda Deepens BOJ’s Outlier Status, Keeping Pressure on Yen ByteDance Disbands Shanghai Games Studio in Expansion Setback BOJ Offers to Buy Cheapest-to-Deliver JGBs for Extended Time Gold Heads for Weekly Drop as Traders Weigh Rate Hikes, Growth European bourses are now firmer across the board, Euro Stoxx 50 +1.2%, as performance picks up following a mixed open amid comparably quiet newsflow. Stateside, US futures are performing similarly, ES +1.0%, though the complex is cognisant of commentary from Chair Powell later. Note, today is Quad Witching; recently, GS’ Rubner highlighted “literally massive” USD 3.2tln notional open interest of US listed options which expire on June 17th, writing that the passing of this may allow the market to move more freely. Top European News UK is to set out new data rules which diverge from the EU on Friday as it seeks to ease pressure on businesses, while it believes the new rules will maintain free flow of data from Europe and does not expect the EU to object to its data reforms, according to Reuters. German Finance Minister Lindner told ECB President Lagarde that the ECB's talk regarding fragmentation threatens to dent confidence, according to FT. Hungarian Chief of Staff Gulyas says the idea of a global minimum tax is not accepted by the Hungarian government. Central Banks BoJ kept policy settings unchanged as expected with rates at -0.10% and QQE with yield curve control maintained to target 10yr JGB yields at around 0% with the decision on YCC made via an 8-1 vote as Kataoka dissented. BoJ repeated its April guidance that it will offer to buy 10yr JGBs at 0.25% every business day unless it is highly likely that no bids will be submitted and it also reiterated guidance on policy bias that it will take additional easing steps without hesitation as needed with an eye on the pandemic's impact on the economy. Furthermore, the BoJ said the economy is picking up as a trend though some weakness has been seen and they must carefully watch the impact of FX moves on Japan's economy and prices. BoJ's Kuroda says upward pressure is being seen in bond yields, and it is important for FX to move stable reflecting fundamentals, no change to the concept that YCC strongly supports the economic recovery; does not see a limit in YCC. Recent rapid JPY weakness is a weakness for the economy.. Does not see a need for further policy easing now. Not thinking about raising the cap on the BoJ's long-term yield target above 0.25%, as it could result in higher yields and weaken the effect of monetary easing. BoJ purchases JPY 70.1bln in ETFs. BoJ offers to purchase the cheapest-to-deliver issuance for an extended time as of June 20th. ECB's Knot says that several 50bps rate increases are possible in the event that inflation worsens, via BNR; does not see hikes reaching 200bp before early-2023. BoE's Pill says markets will have to make their own judgement on whether the BoE is considering a 50bp hike, via Bloomberg TV; stresses the conditionality around the inclusion of "forcefully" in the statement, in the context of "if necessary". Trying to signal that we may need to act further, looking at the persistence of inflationary pressure. Price pressures becoming embedded would be a trigger for more aggressive BoE action. FX Yen recoils after racking up big risk averse gains as BoJ sticks rigidly to ultra accommodative stance with additional measures to maintain YCC, USD/JPY hovers just under 135.00 vs 131.49 low on Thursday. Buck benefits after extending post-FOMC retreat in wake of weak US data and pronounced bounce in Treasuries, DXY extends recovery to 104.540 from 103.410 low. Franc maintains SNB hike momentum to rally further across the board, USD/CHF around 0.9650 compared to par-plus peaks earlier in the week. Euro underpinned by decent option expiry interest and hawkish ECB commentary, but Aussie undermined as Government gives authorities power to stop coal exports; EUR/USD on the 1.0500 handle and above 1+ bln rolling off between 1.0500-1.0495, AUD/USD capped just under 0.7000. Kiwi gleans some traction from a rise in NZ manufacturing PMI and RBNZ rate hike calls; NZD/USD straddles 0.6350, AUD/NZD cross sub-1.1050. Lira lags following latest CBRT survey showing higher inflation forecasts and USD/TRY rate, latter at 18.8874 by year end vs 17.5682 previously and circa 17.3200 at present. Fixed Income Debt extends intraday ranges as volatility remains high on Friday. Bunds veer from 142.56 to 144.99, Gilts between 111.83 and 112.91 and the 10 year T-note within a 116-19/115.28+ range. Hawkish comments from ECB's Knot largely discounted as EZ periphery bonds outperform on anti-fragmentation dynamic, but BoE's Pill rattles Sonia strip. Commodities WTI and Brent are currently set to end the week with gains in excess of USD 1.00/bbl overall, though the benchmarks reside towards the mid-point of the over USD 11.00/bbl range for the week. Newsflow has been comparably limited but primarily focused on familiar themes. US Energy Secretary called an emergency meeting with oil refiners next week to discuss steps companies can take to increase refining capacity and output, according to Reuters citing a DoE spokesperson. White House is reportedly considering fuel export limits as pump prices surge and options such as waiving anti-smog rules are also being discussed, according to Bloomberg. Qatar Energy set August Al-Shaheen crude term price at a premium of USD 9.24/bbl above Dubai quotes which is the highest in 3 months, according to traders cited by Reuters. Brazil's Petrobras is to announce a fuel price increase today, according to Reuters citing local press. China's national oil majors are reportedly in advanced discussions with Qatar around investment in North Field East LNG and for long-term contractual purchases of LNG, according to Reuters sources. Australia has invoked measures to give authorities the power to prevent coal exports if needed in an attempt to avert the risk of blackouts, according to the FT. Spot gold is rangebound in European hours having successfully surpassed the cluster of DMAs between USD 1843-1848/oz during Thursday’s blockbuster session.   US Event Calendar 09:15: May Capacity Utilization, est. 79.2%, prior 79.0% 09:15: May Manufacturing (SIC) Production, est. 0.3%, prior 0.8% 09:15: May Industrial Production MoM, est. 0.4%, prior 1.1% 10:00: May Leading Index, est. -0.4%, prior -0.3% DB's Jim Reid concludes the overnight wrap The Bank of Japan (BOJ) continues to buck the global trend of monetary tightening, as this morning the central bank decided to maintain its purchases of government bonds and equities. The decision was widely anticipated but the BOJ indicated that it must “pay due attention” to foreign exchange markets, following the yen’s rapid weakening to its lowest level in 24 years earlier this week. The Yen has weakened around -1.3% to 134/USD as we type. Meanwhile, Japan’s benchmark 10yr bond yields hit a six-year high of 0.268% at one point, moving beyond the BOJ’s 0.25% cap ahead of the policy decision. However, yields retreated to the 0.25% after its daily unlimited fixed-rate purchasing operations. This just continues what has been a very expensive week for the BoJ in terms of JGB QE after having had to buy $9.6tn yen worth. As one of our Asian FX strategists Tim Baker highlighted this morning, that's US$72bn. Tim highlighted that this is almost what the Fed and ECB were doing in an entire month last year, for economies 5-3x larger than Japan's. Japan's QE this week has been running more than 20x the pace of the Fed's QE in 2021, adjusted for the size of the economy. Can they continue to hold this line? You wouldn't think they could but it depends on global yields and central banks, the Yen and Japanese inflation. See my CoTD (link here) on this earlier this week. Watch out for the BoJ press conference after this goes to print this morning for any hints as to how determined they are to continue their policy settings. The BoJ caps an array of central bank meetings over recent days, and markets have experienced another rout over the last 24 hours as multiple headlines added to investors fears about an imminent recession. It marked a big shift from just a day earlier, when the initial focus after Chair Powell’s press conference had been on his comment (when referring to +75bps) that he didn’t “expect moves of this size to be common”. But futures swiftly turned negative as growing doubts were cast on how firm that commitment really was, not least since we’ve all seen just how swiftly the Fed have shifted posture over the last week in response to worse-than-expected data. On top of that, the latest decisions by the SNB and the BoE (more on which below) only added to the hawkish drumbeat that much higher rates are in the offing, whilst weak US housing data served to aggravate those fears about an imminent growth slowdown. With all said and done, you were hard-pressed to find a major asset that didn’t lose ground yesterday. The major equity indices slumped heavily on both sides of the Atlantic, with the S&P 500 (-3.24%) losing more than -3% for the second time this week, as it also hit its lowest level since late 2020. Indeed, just 14 companies in the entire index moved higher on the day. Elsewhere, the NASDAQ saw an even larger decline, falling -4.08% to have now lost more than a third of its value since its all-time closing peak back in November. It’s lost -9.96% since Friday’s CPI and -6.12% this week. And it was a similar story in Europe too, as the STOXX 600 (-2.47%) fell to a one-year low of its own. Whilst equities were selling off, sovereign bonds continued to trade with elevated volatility, a function of continued central bank surprises, murky forward guidance, and heightened uncertainty around the near-to-medium-term outlook as economic data gets worse. In short it was a wild, wild ride yesterday. The sell-off initially accelerated after the SNB became the latest central bank to surprise. They hiked rates for the first time in 15 years, executing a 50bps move, combined with a change in FX policy, that our strategist Robin Winkler argues marks a once-in-a-decade policy regime shift (link here). In turn, that led to a massive reaction in the Swiss Franc, which strengthened by +2.91% against the US Dollar on the day in its biggest daily appreciation since 2015. Then we had the Bank of England, where they hiked rates by +25bps as widely expected, with 3 of the 9 committee members continuing to vote for a larger 50bp increment. Notably, their statement sent a stronger signal on inflation, saying that the Committee would be “particularly alert to indications of more persistent inflationary pressures, and will if necessary act forcefully in response.” In turn, that saw investors reappraise the path of future rate hikes in a more hawkish direction, and are now expecting more than +150bps worth of hikes over the next 3 meetings, so equivalent to at least a 50bp move at each one. Our UK economist writes in his reaction note (link here) that he expects the BoE to hike by 50bps in August and September now, which for reference would be the largest single hikes since they gained operational independence in 1997. Against that backdrop, sovereign bond yields whipped around yet again. European yields were much higher on tighter policy and then Treasury yields moved higher in sympathy during European trading but gradually fell after another batch of underwhelming housing data lent new fears that growth was on unstable footing. Yields on 10yr Treasuries fell -8.9bps to 3.20%, but at their intraday peak they’d been up +20.7bps, so some sizeable moves in both directions. The move in nominal yields traced real yields, which were as high as +21.7bps intraday at the 10yr point, before finishing the day just +1.1bps higher. 10yr breakevens fell -10.4bps on the prospect of slower growth, which drove nominal yields lower on the day. In Asia, this morning, 10yr yields are witnessing a reversal with yields up +4.33bps to 3.24% while 2yr yields (+6bps) also moved higher to 3.15% as I type. Our US rates strategists have updated their views in the face of some large forces in both directions with the 10yr now expected to hit 3.85%. They also updated their year-end 2yr call to 3.85%, so a flat curve. See the full update here. Meanwhile in Europe, 10yr bunds gained +7.2bps (+28.3bps at the peak) in a very choppy session. However, there was a considerable tightening in peripheral spreads for a second day running, with the gap between Italian and German 10yr yields down -13.7bps to 202bps, which followed comments from Italian central bank governor Visco that the spread should be under 150bps based on economic fundamentals. The heightened uncertainty and wild swings in yields also translated to heightened currency volatility, where the Euro traded in its widest intraday range since March 2020, which was as low as -0.60% and as strong as +1.50% against the dollar before ultimately appreciating +1.01%. As mentioned, sentiment was further dampened by weak US housing data yesterday, with both housing starts and building permits in May falling by even more than expected. Housing starts were down to an annualised rate of 1.549m (vs. 1.693m expected), their lowest level in over a year, whilst building permits were down to an annualised rate of 1.695m (vs. 1.778m expected). We also got a sign of how tighter monetary policy was affecting the market, with Freddie Mac’s data showing that a 30-year fixed mortgage rate for the week ending yesterday rose to 5.78% (vs. 5.23% in the previous week). That’s the highest level since November 2008, as well as the largest weekly increase in the rate since 1987. And it just shows how the much more rapid pace of Fed hikes now expected by investors over the last week is already filtering its way through to the real economy. Those moves lower in the US and European equities have been echoed in Asian markets this morning. The Nikkei (-1.59%) is the largest underperformer with the Kospi (-1.08%) also trading sharply lower. Elsewhere, the Hang Seng (+0.78%) is recovering from earlier losses while mainland Chinese stocks also turning around with the Shanghai Composite (+0.15%) and CSI (+0.26%) both trading up. Outside of Asia, stock futures in the DMs are bouncing with contracts on the S&P 500 (+0.52%), NASDAQ 100 (+0.67%) and DAX (+0.31%) all heading higher. Looking forward, Russian President Putin will be giving a speech today at the St Petersburg Economic Forum, which his press secretary Peskov has tried to build anticipation for, and could offer a flavour of how combative the Kremlin plans to be in its international approach. That came as German Chancellor Scholz, French President Macron and Italian PM Draghi endorsed Ukraine’s EU candidacy in a visit to the country yesterday. Otherwise, European natural gas futures pared back their significant increases in the morning to close -1.94% lower, marking a change in direction after their massive increases over the previous 2 sessions. To the day ahead now, and data releases include US industrial production and capacity utilisation for May, along with the final Euro Area CPI reading for May. Central bankers include Fed Chair Powell, the ECB’s Simkus and the BoE’s Tenreyro and Pill. Tyler Durden Fri, 06/17/2022 - 08:12.....»»

Category: blogSource: zerohedgeJun 17th, 2022

Joe Biden Read This: All You Need To Know About The US Refining Industry

Joe Biden Read This: All You Need To Know About The US Refining Industry By John Kemp, Reuters senior markets analyst President Joe Biden has written to major oil companies to complain about the high refining margins for gasoline and diesel and demanded an explanation for refinery closures since 2020. The president’s letter, dated June 14, should be seen mostly as a political exercise to deflect responsibility for high fuel prices and accelerating inflation (“Biden warns big oil over gasoline output”, Axios, June 15).   He blamed historically high profit margins made by refiners for causing an “unprecedented disconnect” between the international price of crude oil and the retail price of gasoline. "At a time of war," the president wrote, record margins "are not acceptable" and demanded companies increase the supply of gasoline and other refined fuels immediately. GLOBAL FACTORS Biden acknowledged Russia’s invasion of Ukraine has been a primary driver of higher oil and therefore gasoline prices. Russia’s President Vladimir Putin was name-checked four times to ensure readers knew who to blame. But the U.S. president also complained that the lack of domestic refinery capacity and high margins are blunting the impact of other actions the administration has taken to stabilise fuel prices for consumers. He has already ordered an unprecedentedly large release of crude oil from the strategic petroleum reserve and relaxed gasoline blending regulations in an effort to hold down pump prices. The shortage of refinery capacity is a global problem, with more than 3 million barrels per day (bpd) going offline since the onset of the pandemic. But the president noted more than 800,000 bpd of capacity had closed in the United States since 2020 and demanded an explanation. He directed the secretary of energy to hold an emergency meeting with industry representatives and engage the National Petroleum Council to discuss the crisis. He also called for companies to take "immediate actions to increase the supply of gasoline, diesel and other refined products." And he said the administration was prepared to use all reasonable and appropriate tools and emergency powers to increase refinery capacity and output. CAPACITY LIMITS U.S. refineries are already running at close to their theoretical maximum so there is limited ability to squeeze more fuel from the current system.  In recent weeks, crude processing has been running at 93-94% of maximum operable capacity, which is in the 80th to 83rd percentile for all weeks since 1990.  But if refineries could raise that to the 95th percentile, it would increase the utilization rate by only 2.5 percentage points to 96.4%. If the utilization rate could be raised to the 98th percentile, it would rise by 3-4 percentage points to 97.5%, but such high operating rates have never been sustained for more than a few weeks at a time. Put another way, the U.S. refinery system currently has around 1 million bpd of under-used crude processing capacity (19th percentile). If the system was run very hot, it could potentially reduce unused crude processing capacity to 600,000 bpd (5th percentile) or even 400,000 bpd (98th percentile) but that would be difficult to sustain. Extra processing would yield no more than 600,000 bpd of products, roughly split between light distillates such as gasoline (400,000 bpd) and middle distillates such as diesel and jet fuel (200,000 bpd), and probably less. New crude distillation or downstream processing units would take at least two to five years from making an initial investment decision to coming onstream so they would not be available until the middle of the decade. Even debottlenecking existing units to increase capacity incrementally is likely to take 12-18 months - and units have to be taken offline for the upgrades to happen. CAPACITY REDUCTIONS U.S. operable refinery capacity has fallen by around 1 million bpd since the start of 2020, according to data published by the U.S. Energy Information Administration (“Monthly refinery report”, EIA, May 2022). But around two thirds of the total is attributable to the closure of three refineries: Philadelphia Energy Solutions closed its refinery in Pennsylvania (335,000 bpd) after an explosion and the operator went bankrupt. Marathon is converting the Martinez refinery in California (161,000 bpd) into a biofuels facility as part of California's energy transition programme. Shell closed the Convent refinery in Louisiana (240,000 bpd) as part of its strategy for transitioning to a low-carbon future and when it failed to find another buyer. Even before the pandemic, many refiners were reluctant to replace obsolescent or damaged equipment let alone increase capacity because the prospective transition to more electric vehicles would reduce fuel demand. Extra financial pressure from the pandemic-driven reductions in fuel consumption accelerated capacity reductions that would likely have happened in any event. Rationalisation is the result of long-term pressures on the refining system, especially from the projected increase in alternative-powered vehicles. Given the large amounts of capital involved in refinery upgrades and reconfigurations, the long lead times for planning and construction, and lengthy payback periods, these decisions cannot be reversed easily or quickly. As a result, available capacity for 2022 and 2023 is largely fixed and nearly all being used already leaving little scope to increase output in the short to medium term. Responding for the industry, the American Fuel and Petrochemical Manufacturers trade association has already explained the constraints in a letter it sent to the White House on June 15. Even the White House has noted “you have ample market incentive” to increase fuel production if at all possible, which points to the constraints the refineries are operating under. The political imperative for the White House to lower gasoline prices before November has run into the practical problem that refinery capacity is very inflexible in the short term and has to be planned for much longer periods. [ZH: all we would add to John Kemp's excellent article, is what is responsible for the dire state US energy finds itself in, and that - as we explained over a year ago in "Will ESG Trigger Energy Hyperinflation" - is the Biden administration itself] Tyler Durden Thu, 06/16/2022 - 16:20.....»»

Category: blogSource: zerohedgeJun 16th, 2022

Marriott Vacations Worldwide ("MVW") Raises Full Year 2022 Guidance

ORLANDO, Fla., June 16, 2022 /PRNewswire/ -- In conjunction with its investor day, Marriott Vacations Worldwide Corporation (NYSE:VAC) (the "Company") is raising its full year guidance. "We continue to see very high owner occupancies at our resorts, enabling us to drive strong tour growth and contract sales during the second quarter of 2022.  As a result of this, combined with the continued strength in our VPGs, we are increasing our full year contract sales guidance by $100 million for 2022," said Stephen P. Weisz, chief executive officer. The Company continues to expect Adjusted development profit margin to remain strong for the full year 2022.  However, with owner occupancies exceeding expectations, the Company has allocated more rental inventory for owner usage to increase their vacation choices. Similarly, the Company continues to see higher owner usage at resorts affiliated with Interval International, which has impacted member deposits and exchanges. Given the increased owner usage, the updated guidance reflects the expected impact on rental and exchange revenue and profit this year.  The Company expects owner usage to normalize in 2023. "Notwithstanding the increased owner usage, we expect our strong Adjusted development profit margin on higher contract sales will allow us to deliver full year 2022 Adjusted EBITDA and Adjusted free cash flow above our previous guidance," said Tony Terry, executive vice president and chief financial officer. Full Year 2022 Outlook (in millions) The Financial Schedules that follow reconcile the non-GAAP financial measures set forth below to the following full year 2022 expected GAAP results for the Company. Net income attributable to common shareholders $330 to $352 Net cash, cash equivalents and restricted cash provided by operating activities $405 to $431 Contract sales $1,775 to $1,875 Adjusted EBITDA $880 to $930 Adjusted free cash flow $590 to $670 Investor Day Webcast The Company will host an investor day today beginning at 12:30 p.m. ET.  Participants may watch the live webcast by registering at ir.mvwc.com. A replay of the event will be available for 60 days on the Company's website. About Marriott Vacations Worldwide Corporation Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services. The Company has over 120 vacation ownership resorts and approximately 700,000 owner families in a diverse portfolio that includes some of the most iconic vacation ownership brands. The Company also operates exchange networks and membership programs comprised of nearly 3,200 affiliated resorts in over 90 countries and territories, as well as provides management services to other resorts and lodging properties. As a leader and innovator in the vacation industry, the Company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit www.marriottvacationsworldwide.com. Note on forward-looking statements This press release and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements about expectations for future growth and projections for full year 2022, that are not historical facts. The Company cautions you that these statements are not guarantees of future performance and are subject to numerous and evolving risks that we may not be able to predict or assess, such as: the effects of the COVID-19 pandemic, including variations in  demand for vacation ownership and exchange products and services, worker absenteeism, quarantines or other government-imposed travel or health-related restrictions; the length and severity of the COVID-19 pandemic, including its short and longer-term impact on consumer confidence, global supply chain disruptions and price inflation; volatility in the international and national economy and credit markets, including as a result of the COVID-19 pandemic and the ongoing conflict between Russia and Ukraine and related sanctions and other measures; our ability to attract and retain our global workforce; competitive conditions; the availability of capital to finance growth; the effects of steps we have taken and may continue to take to reduce operating costs and/or enhance health ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaJun 16th, 2022

Pariah No More: Biden To Meet With Mohammed Bin Salman In Mid-July

Pariah No More: Biden To Meet With Mohammed Bin Salman In Mid-July NBC is confirming based on a senior administration official that President Joe Biden will travel to meet with Saudi Crown Prince Mohammed bin Salman in mid-July.  As we detailed earlier, the itinerary is expected to include a prior stop in Israel and the West Bank. In his latest comments Biden attempted to downplay the urgent need to get the Saudis pumping more oil, instead focusing on a hoped-for security arrangement as the Saudis and Israelis have lately moved toward closer cooperation. The White House last week reportedly informed Saudi Arabia that it's willing to 'move on' after MbS faced some degree of global isolation due to the 2018 murder of Washington Post columnist Jamal Khashoggi at the Saudi consulate in Istanbul. It remains that Biden is "moving on" in hopes the Saudis will finally accede to his longtime demands that the kingdom ramp up oil output while Washington seeks to economically isolate Russia and punish Putin. But in a Tuesday morning media statement carried by Reuters, OPEC says it sees "considerable risk" for forecast for oil demand recovery to pre-pandemic levels, citing the war in Ukraine, as well as "uncertainty" around the coronavirus pandemic roll-out towards end of the second-half of 2022: "Looking ahead, current geopolitical developments and the uncertain roll-out of the pandemic toward the end of the second half of the year continue to pose a considerable risk to the forecast recovery to pre-pandemic levels," OPEC said in the report. "Inflationary pressures are likely to persist and it remains highly uncertain as to when geopolitical issues may be resolved. Nevertheless, oil demand is forecast at healthy levels in the second half of this year." The report expects world consumption to surpass the 100 million bpd mark in the third quarter, in line with earlier projections, and for the 2022 average to reach 100.29 million bpd, just above the pre-pandemic rate in 2019. It appears that despite OPEC's small, and in reality largely symbolic attempt to pacify Washington by its modest output hike at its last meeting - which made little overall impact - this latest statement suggests the Saudis are unlikely to risk their current giant profit-taking merely to appease a US president who will press for abnormal output concessions. Meanwhile, not what Biden is hoping for: crude price spiking as news hits Tuesday morning of his Saudi trip and the fresh OPEC statement voicing concerns over slow recovery for pre-pandemic oil demand... Upon the start of his presidency, Biden had lambasted bin Salman, who is the kingdom's de facto ruler, as a "pariah" and further decided to release to the public a classified intelligence investigation holding him responsible for the Khashoggi killing. NBC describes: Biden will address human rights, but the visit is largely aimed at repairing relations after Biden in 2019 referred to Saudi Arabia as a "pariah" state for the brutal murder of Saudi-born journalist Jamal Khashoggi, a regime critic, administration officials have said. When Biden took office he authorized the declassification of a CIA investigation’s conclusion that the crown prince was ultimately responsible for the murder. Days ago, CNN described Biden has "set aside his moral outrage" - apparently in order to go after the "bigger bad guy" of the moment, Vladimir Putin: But officials say Biden, who is under immense pressure to crack down on Russia and lower domestic gas prices amid inflation that’s rising at the fastest pace since 1981, has set aside his moral outrage to pursue warmer relations with the Kingdom amid the dramatic global upheaval spurred by the Kremlin’s invasion of Ukraine. Biden to Talk Energy Production While in Saudi Arabia: Kirby Saudi Arabia not to listen — zerohedge (@zerohedge) June 14, 2022 It should be noted, however, that the US weapons shipments and close Pentagon help executing the Saudi coalition war on Yemen never ultimately ceased (though was briefly put on "pause" as a message to Riyadh). Tyler Durden Tue, 06/14/2022 - 09:48.....»»

Category: blogSource: zerohedgeJun 14th, 2022