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Leawood-based bank opens office in Frisco, expanding North Texas presence

The bank will add the Frisco market to its network of locations across five states......»»

Category: topSource: bizjournalsOct 13th, 2021

Kansas-based bank opens office in Frisco, expanding North Texas presence

The bank will add the Frisco market to its network of locations across five states......»»

Category: topSource: bizjournalsOct 13th, 2021

Watch Out for These 5 Top-Performing S&P 500 Banks of Q3

Bank stocks have been performing impressively in Q3. Top-performing S&P 500 banks like Zions (ZION), SVB Financial (SIVB), Comerica (CMA), Fifth Third Bancorp (FITB), and Huntington (HBAN) that are driven by solid fundamentals are worth a look. Bank stocks continue to be one of the investor favorites after a turbulent 2020. During third-quarter 2021, the S&P Banks Select Industry Index rallied 3.1%, while the same was down almost 12% last year.One of the key themes during the third quarter of the year was the Federal Reserve’s likely hawkish stance. At the end of the two-day FOMC meeting on Sep 22, the central bank signaled that interest rates could increase in late 2022, a year earlier than expected, and an official tapering decision to scale back bond buying might be announced at the November 2021 meeting, if the recovery progress remains on track.Apart from this, continued expectation of impressive economic rebound led to bullish investor sentiments. The Fed, in its latest Summary of Economic Projections, noted that the U.S. economy will grow at a rate of 5.9% in 2021. A steady fall in unemployment claims, solid housing market and rising consumer confidence are some of the major factors that will continue to drive the economy.Though interest rates will remain at near-zero levels at least for now, the Fed hinting at rate hikes by 2022-end is going to support banks’ financials over time. Further, as economic recovery gains traction, demand for loans (that had been soft so far) will rise.The steepening of the yield curve (the difference between short and long-term interest rates) is likely to support banks’ net interest margin. Though the yield on 10-year U.S. Treasury Bond of 1.49% at September-end was relatively stable on a sequential basis, the figure was up 57 basis points from 0.92% at 2020-end. Thus, net interest income — which constitutes a large portion of banks’ revenues — will get some support.Banks are also undertaking business streamlining/expansion initiatives (both domestic and international). These efforts are likely to provide support to their fee income sources and lead to top-line growth.Following the nod from the Fed after clearing this year’s stress tests in June, major banks announced robust capital deployments (including dividend hikes and share repurchases) effective third-quarter 2021. This indicates that banks are capable of withstanding micro/macro-economic shocks, remain handily above regulatory capital requirements and return more capital to shareholders. This has also instilled investors’ confidence in the banking industry.5 Top-Performing S&P 500 Bank StocksWhile most bank investors have had a lot to cheer about in the last three months, some stocks performed better than others. The biggest winners within the S&P 500 Index were Zions Bancorporation ZION, SVB Financial SIVB, Comerica CMA, Fifth Third Bancorp FITB as well as Huntington Bancshares HBAN.In third-quarter 2021, these stocks handily outperformed the S&P 500 Index’s rise of 3.9% (the index’s worst quarter since March 2020) and the Zacks Finance sector’s 2.3% growth.Price Performance During Q3 Image Source: Zacks Investment ResearchHere's a brief description of the above-mentioned five bank stocks:Zions: Salt Lake City, UT-based Zions is a diversified financial service provider, operating a widespread network of nearly 430 banking offices. Its footprint spans across 11 western states — Utah, Idaho, California, Nevada, Arizona, Colorado, Texas, New Mexico, Washington, Oregon and Wyoming.Robust loans, strong capital position and business simplifying initiatives will continue to support Zions. The bank's solid non-interest-bearing deposits balance also aids its financials. The company’s initiatives to efficiently deploy the capital generated from these deposits and expectations of a gradual rise in loan demand will likely support revenue growth despite lower rates.Zions’ capital deployment activities remain impressive. In July, this Zacks Rank #3 (Hold) company declared an 11.7% hike in its quarterly dividend, while in August, the bank authorized an additional $200 million share repurchases, after having completed $125 million (announced in July) for buyback authorization initially set forth for third-quarter 2021.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of Zions have gained 17.1% during third-quarter 2021. For the quarter, the Zacks Consensus Estimate for earnings of $1.38 per share has been revised 1.5% north over the past seven days.SVB Financial: Headquartered in Santa Clara, CA, SVB Financial is a diversified financial services company. Incorporated in 1999, it operates through, among others, the Silicon Valley Bank, its primary subsidiary, providing a wide range of banking and financial products as well as services.SVB Financial remains focused on organic growth strategy, as is evident from a consistent rise in loans, deposits and net interest income over the past several years. The company is undertaking efforts to expand globally.SVB Financial is expanding through strategic buyouts, which will continue supporting its position as one of the foremost providers of financing solutions to innovative companies. In July, the company acquired Boston Private Financial Holdings, Inc., which will further strengthen its private bank and wealth management offerings. In December 2020, it had acquired the debt investment business of WestRiver Group and in 2019, the company acquired Leerink Holdings LLC, now renamed SVB Leerink.During the June-September quarter, shares of this Zacks Rank #3 stock have gained 16.3%. Also, for third-quarter 2021, the Zacks Consensus Estimate for earnings of $5.11 per share has moved marginally upward over the past seven days.Comerica: Headquartered in Dallas, TX, Comerica delivers banking and financial services in three primary geographic markets — Texas, California, Michigan as well as Arizona and Florida. Also, the company has operations in numerous other U.S. states, and Canada and Mexico.Comerica’s focus on improving operational efficiency led to the introduction of GEAR Up initiatives in mid-2016. Since the implementation of this initiative, the bank has consolidated numerous banking centers, significantly lowered retirement plan expenses and retrenched a number of employees. These efforts have resulted in an improvement in efficiency ratio and return on equity over time.Comerica remains focused on revenue growth strategy. With gradually recovering loan commitments, robust loan pipeline and recovery of the economy, the company’s loans balance is expected to continue improving, thereby stoking net interest income growth.A manageable debt level, investment-grade long-term credit ratings, solid balance sheet position and impressive credit quality are other catalysts supporting Comerica. Additionally, this Zacks Rank #3 company’s capital deployment activities are encouraging and sustainable.Over the last three months, the stock has gained 12.9%. For third-quarter 2021, the Zacks Consensus Estimate for earnings of $1.66 per share has been unchanged over the past seven days.Fifth Third Bancorp: With assets of $205 billion, Cincinnati, HO-based Fifth Third Bancorp has 1,096 full-service banking centers across 10 states throughout the Midwestern and Southeastern regions of the United States.Its expansion of the non-interest income base over the years with help of strategic partnerships and acquisitions in different industries such as healthcare (including the acquisition of Coker Capital in 2020 and buyout of Provide in August 2021) will support commercial verticals and result in revenue growth, expense savings as well as operational excellence.Further, the company remains focused on branch optimization to enhance its presence in high-growth markets. In fact, Fifth Third Bancorp is re-allocating its branch network to enhance its footprint in the Southeast and diminish presence in the Midwest. Thus, nearly 25 branch openings per year through 2025 are targeted, while the bank is on track to close 42 additional branches by January 2022 (mainly in the Midwest).Additionally, a strong balance sheet and investment-grade long-term credit ratings from leading credit rating agencies are likely to continue supporting the company’s growth. Also, Fifth Third Bancorp’s sustainable capital deployments reflect a solid liquidity position and will keep enhancing shareholder value.Shares of this Zacks Rank #3 company grew 11.1% for the third quarter of the year. The Zacks Consensus Estimate for earnings of 90 cents per share for the quarter has been unchanged over the past seven days.Huntington Bancshares: Columbus, OH, Huntington Bancshares is a multi-state diversified regional bank holding company. Its inorganic expansion moves, and growth in loans and deposits balance are expected to drive long-term growth.Huntington Bancshares is well poised to expand via strategic buyouts, given robust liquidity. Over the past few years, it has expanded its footprint with a number of acquisitions. This June, Huntington Bancshares closed the merger with TCF Financial Corporation to form one of the top 25 U.S. bank holding companies.The deal, along with others, has strengthened the company’s position in existing markets, established a presence in new markets and combined complementary businesses. Thus, such opportunistic acquisitions will enable Huntington Bancshares to realize meaningful synergies and fuel growth. Further, normalizing asset quality (following the 2020 COVID-related mayhem), solid liquidity position and economic recovery are likely to keep supporting the company’s financials.During the June-September quarter, the stock rallied 8.4%. The Zacks Consensus Estimate for earnings of 37 cents per share for the third quarter has been unchanged over the past seven days. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fifth Third Bancorp (FITB): Free Stock Analysis Report Comerica Incorporated (CMA): Free Stock Analysis Report Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report Zions Bancorporation, N.A. (ZION): Free Stock Analysis Report SVB Financial Group (SIVB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 6th, 2021

Futures Slide On Evergrande, Stagflation, Energy Crisis Fears

Futures Slide On Evergrande, Stagflation, Energy Crisis Fears Stock futures ticked lower on Monday, hurt by weakening sentiment in Asia and Europe amid growing worries about economic stagflation, the global energy crisis and renewed fears about property developer China Evergrande whose stock was halted overnight in Hong Kong, while Tesla shares rose after reporting a record number of electric vehicle deliveries. At 715 a.m. ET, Dow e-minis were down 114 points, or 0.33%, S&P 500 e-minis were down 16.25 points, or 0.37%, and Nasdaq 100 e-minis were down 73.75 points, or 0.5%. “The global chip and energy shortage is getting worse, the inflation is rising, the recovery may be slowing, and that puts central banks between a rock and a hard place,” Ipek Ozkardeskaya, a senior analyst at Swissquote, wrote in a note. “The best they could do is to do nothing, or to tighten their monetary policy to avoid losing control on the economy.” The most notable overnight event was the suspension of trading in shares of debt-laden Evergrande which unsettled markets further about any fallout from its troubles even as media reports said the company would sell a stake in its property management unit for over $5 billion. Wall Street’s main indexes were battered in September, hit by worries about the U.S. debt ceiling, the fate of a massive infrastructure spending bill and the meltdown of heavily indebted China Evergrande Group. On the second trading day of October, investors took a defensive stance, with a cautious approach to riskier assets as a spreading energy crunch meets concerns over the duration of broader rising prices and the tapering of economic stimulus efforts. Investors also kept close watch on rising U.S. Treasury yields after data last week showed increased consumer spending, accelerated factory activity and elevated inflation growth, which could help push the Federal Reserve towards tightening its accommodative monetary policy sooner than expected. Among individual stocks, Merck & Co. extended its gains from Friday on the results of its experimental Covid pill. The stock climbed 2.6% premarket. 3M shares fell 1.5% after J.P. Morgan cut its rating on the industrial conglomerate’s stock to “neutral” from “overweight”.  Here are some of the other notable premarket movers today: Tesla (TSLA  US) shares climb 2.6% higher in U.S. premarket trading after the electric car maker reported record 3Q deliveries that easily beat estimates Amplify Energy (AMPY US) shares plummet 33% in premarket trading after California beaches in northern Orange County were closed and wetlands contaminated by a huge oil spill caused by a broken pipeline off the coast DHT Holdings (DHT US) shares rose as much as 3.7% in Friday extended trading after the company said it bought 1.23m of its own shares Offerpad Solutions (OPAD US) was down 3.1% Friday postmarket after registering shares for potential sale Adverum Biotechnologies (ADVM US) shares rose as much as 23% in Friday extended trading after co. reported new long-term data from the OPTIC clinical trial of ADVM-022 single, in-office intravitreal injection gene therapy Markets also awaited U.S. Joe Biden’s new plan on China trade strategy, with U.S. Trade Representative Katherine Tai set for new talks with Beijing later in the day over its failure to keep promises made in a “Phase 1” trade deal struck with former President Donald Trump. Biden's new plan follows a top-to-bottom review of import tariffs and other measures imposed by the Trump administration; reports also said that USTR will today say that China is not complying with the Phase 1 deal. Europe's Stoxx 600 Index trades flat, erasing earlier losses of as much as 0.6%, helped by gains in health care and basic resources shares. The healthcare sub index rose 0.8% after AstraZeneca’s Enhertu got a breakthrough therapy designation while basic resources sub-index up 0.3% as iron ore rallies. Euro Stoxx 50 is down 0.2% having declined as much as 1% at the open. FTSE MIB lags on the recovery; FTSE 100 trades flat. Autos, banks and travel names are the weakest sectors. Here are some of the biggest European movers today: Adler Group shares jump as much as 18%, briefly erasing the previous week’s declines, after the firm said it’s reviewing strategic options that may result in a sale of assets Wm Morrison declines as much as 3.8% after the offer terms from winning bidder CD&R disappointed investors Sainsbury rises as much as 5.9% and Tesco gains 1.7% on speculation that CD&R’s Morrison deal may drive further interest in Britain’s grocery sector at a time when cash-rich buyout funds are stalking undervalued U.K. companies; also, a report says Tesco will announce a share buyback program this week Plus500 gains as much as 6.1% after the contracts-for-difference trading firm says full-year profit will beat market expectations Bewi rises as much as 9.9% after the owner of 50% of building products company Jackon Holding accepted Bewi’s offer BT slumps as much as 7.8% to a six-month low following a Telegraph report that Sky is closing in on a broadband investment deal with Virgin Media O2, raising worries over competition Azelio falls as much as 22% after newspaper Dagens Industri raised questions about orders for the renewable energy equipment developer Aryzta tumbles as much as 13% after results, halting a four-day winning streak Frasers falls as much as 12%, the most since December. Bank of America cut the owner of the Sports Direct retail chain to underperform from buy Asia stocks also declined, with Hong Kong shares a drag, after debt-ridden China Evergrande Group’s trading was suspended while investors also sold health care-related names and appeared wary heading into the final quarter of 2021. The MSCI Asia Pacific Index slipped as much as 0.8%. Vaccine maker CanSino Biologics and Shanghai Fosun Pharmaceutical Group were the biggest decliners on the measure as Merck & Co. said its experimental Covid-19 antiviral pill cuts the risk of hospitalization and death in half. “Investors will need to take a sell-first ask-later stance given current elevated valuation levels of vaccine stocks,” said Justin Tang, head of Asian research at United First Partners. Also weighing on traders’ minds is the global energy crisis, which has spread to India and is stoking inflation concerns. Speculation about the potential restructuring of China Evergrande Group, which has suspended trading of its Hong Kong shares, is also affecting sentiment at a time liquidity is thinner. The mainland Chinese market is closed through Thursday for Golden Week holidays. Singapore’s benchmark Straits Times Index was among the top-performing gauges in Asia Pacific as the country takes steps toward further reopening. Measures across the cyclicals-heavy Southeast Asian markets also rose, while tech stocks including Alibaba and Meituan took a hit. Asian assets will be sold alongside global peers in the short term, said Tai Hui, chief Asia market strategist at JPMorgan Asset Management. “But we think cyclical sectors, especially exporters, should also perform well for the rest of the year, especially as more Asian economies are seeing a rising level of vaccination,” he added. Japanese equities fell for a sixth-straight day, as investor concerns deepened over contagion from China’s real-estate sector woes on the suspension of trading in shares of Evergrande and its property management unit. Electronics makers were the biggest drag on the Topix, which declined 0.6%, capping its worst losing streak since February 2020. Tokyo Electron and Fanuc were the largest contributors to a 1.1% drop in the Nikkei 225. “It’s possible Evergrande news flow is impacting Japan stocks, the issues surrounding the property firm aren’t resolved,” said Mamoru Shimode, chief strategist at Resona Asset Management. “It’s also important to keep in mind markets overall have been in risk-off mood since the latter half of September.” Travel and retail stocks gained, following U.S. peers higher after promising results for Merck’s experimental Covid-19 pill and amid signs of a pick-up in Japanese department-store sales. Meanwhile, Fumio Kishida was appointed prime minister by parliament Monday, and was set to reveal a new cabinet lineup as he seeks to revive support for his ruling party ahead of a general election that could likely come this month. In rates, Treasuries are near session lows, the 10Y TSY pushing on 1.50% cheaper by ~3.5bp on the day and near middle of last week’s 1.44%-1.565% range in early U.S. session after erasing gains that pushed yields to lowest levels in a week. 5s30s curve at ~111.7bp is steeper by nearly 2bp, probing 50-DMA and approaching last week’s high. Gilts led the selloff during European morning as regional stocks recovered from a weak open. Curve steepens, with long-end yields cheaper by around 4bp vs Friday’s close.  Peripheral spreads widen with long end Italy underperforming. Semi-core spreads tighten at the margin. In FX, Bloomberg dollar index is little changed; NOK, CAD and CHF are the best performers in G-10, JPY lags but trading ranges are narrow. Crude futures hold slightly in the red in choppy trade. The Bloomberg Dollar Spot Index was steady and the greenback traded in tight ranges against its Group-of-10 peers. The euro reversed a modest decline to trade above $1.16, while the pound hovered after touching its highest level in nearly a week during the Asia session. Expected volatility is now at the highest in five months. The currency fell to a year-to-date low last week amid concerns over soaring energy prices, falling business confidence and the end of the government’s furlough scheme. The Aussie dollar was flat and option markets aren’t expecting the RBA’s policy decision Tuesday to be an eventful one for spot. The yen inched lower after earlier touching a one-week high when concern over potential contagion from indebted Chinese developer Evergrande weighed on Japanese stocks. In commodities, WTI is down 0.25% near $75.70, Brent just 0.1% lower near $79.20 ahead of today’s OPEC+ virtual gathering. Spot gold drops ~$10 to test Friday’s low near $1,750/oz. Base metals trade well with LME aluminum and zinc rising over 1% to outperform peers. Bitcoin and cryptos dropped after a burst higher late on Sunday, following the China Evergrande suspension even though i) the news appears to be positive and is in relation to the latest asset sale and ii) China has banned trading in cryptos, so it wasn't exactly clear why any mainlanders would be selling to meet margin calls. On today's calendar, we get August factory orders, and the final August durable goods orders, core capital goods orders. We also get more central bank speakers including Fed's Bullard, BoE’s Ramsden, ECB Vice President de Guindos and ECB’s Makhlouf. Market Snapshot S&P 500 futures down 0.4% to 4,324.25 STOXX Europe 600 little changed at 453.24 MXAP down 0.5% to 194.02 MXAPJ down 0.3% to 629.26 Nikkei down 1.1% to 28,444.89 Topix down 0.6% to 1,973.92 Hang Seng Index down 2.2% to 24,036.37 Shanghai Composite up 0.9% to 3,568.17 Sensex up 1.1% to 59,391.71 Australia S&P/ASX 200 up 1.3% to 7,278.54 Kospi down 1.6% to 3,019.18 Brent Futures little changed at $79.22/bbl Gold spot down 0.5% to $1,752.29 U.S. Dollar Index little changed at 93.96 German 10Y yield rose 1.4 bps to -0.210% Euro up 0.1% to $1.1613 Top Overnight News from Bloomberg China Evergrande Group and its property-services arm were halted in Hong Kong stock trading amid a report that the developer agreed to sell a controlling stake in the unit to raise much- needed cash U.K. Prime Minister Boris Johnson said he won’t fall back on immigration to solve the U.K.’s truck driver shortage, as he presented supply chain troubles that have left supermarket shelves bare and gas stations dry as a “period of adjustment” in the wake of Brexit and the pandemic House Speaker Nancy Pelosi reset the clock on Saturday, giving lawmakers until Halloween to strike a deal on both the bipartisan $550 billion infrastructure deal and a broader, signature package of social spending, health care and tax measures they must pass with only Democratic votes Germany’s Social Democrats under chancellor-in-waiting Olaf Scholz signaled progress in talks with the Greens on forming a coalition government with the Free Democrats, while Angela Merkel’s bloc kept the door ajar for a conservative-led alliance Japan’s Fumio Kishida was appointed prime minister by parliament Monday, and is set to reveal a new cabinet lineup as he seeks to revive support for his ruling party ahead of a general election that could likely come this month. A more detailed look at global markets courtesy of Newsquawk Asian equity markets traded mixed as ongoing Evergrande default concerns clouded over the initial optimism following Friday’s rebound on Wall St where all major indices found some reprieve from last week’s downturn, although the S&P 500 still suffered its worst weekly performance since February and US equity futures also failed to hold on to opening gains with this week’s upcoming risk events adding to the cautiousness including the OPEC+ meeting later today, a bout of Asia-Pac central bank policy decisions from Tuesday and Friday’s NFP job data. The ASX 200 (+1.3%) outperformed, with the index unfazed by the absence of key market participants with mainland China away for Golden Week, South Korea closed due to National Foundation Day, and amid the quasi-holiday conditions in Australia as New South Wales observed Labour Day. Nonetheless, the local benchmark was propped up by the top-weighted financials sector with shares in Australia’s largest bank CBA boosted following a AUD 6.0bln off-market buyback and with reopening stocks, especially those in the travel industry, among the biggest gainers. The Nikkei 225 (-1.1%) wiped out its opening advances despite the lack of significant news catalyst for the reversal which was spearheaded by exporter names, while the focus in Japan turned to PM Kishida’s confirmation in parliament and for details of the new Cabinet members. The Hang Seng (-2.2%) was heavily pressured by losses in health and biotech stocks, while property names also suffered amid the current Evergrande fears after a USD 260mln note from Jumbo Fortune Enterprises matured on Sunday which was guaranteed by China Evergrande Group and its unit Tianji Holding Ltd, while there is no grace period for the payment but five days will be allowed for administrative or technical errors. Furthermore, shares of Evergrande, its property services unit and structured products have all been halted which reports circulating that Hopson Development is to acquire a 51% stake in Evergrande Property Services for HKD 40bln. Finally, 10yr JGBs tracked recent upside in T-notes and with support also from the negative mood in Japanese stocks, as well as the BoJ’s presence in the market for over JPY 1tln of JGBs mostly concentrated in 1yr-5yr maturities. Top Asian News Singapore Eyes More Vaccinated Travel Lanes in Cautious Reopen India Farm Protests Gather Momentum After 4 Demonstrators Killed U.S. Natural Gas Jumps Amid Strong Overseas Demand for Fuel Suzuki Takes Japan Finance Reins as Election, Stimulus Loom Major bourses in Europe have adopted somewhat of a mixed picture (Euro Stoxx 50 Unch; Stoxx 600 -0.2%), following on from the broad-based downbeat cash open seen as Europe picked up the baton from APAC. US equity futures see modest losses across the board but have again drifted off worst levels. Nonetheless, the NQ (-0.5%) remains the slight laggard vs its RTY (-0.1%), ES (-0.2%) and YM (-0.4%) counterparts. Sectors are now mixed with a slight defensive tilt, with Healthcare and Food & Beverages among the top gainers, whilst financials bear the brunt of the yield decline on Friday, with Banks at the foot of the bunch. In terms of individual movers, Morrisons (-3.8%) has accepted CD&R’s takeover offer, which has left Fortress empty-handed but has fanned speculation that the group may look towards Sainsbury’s (+5.9%), Tesco (+1.7%) or Marks & Spencer (+1.5%) as potential targets, with the former being the best suitor, according to reports. Elsewhere BT (-7%) plumbed the depths with some citing reports that Sky is to partner with Virgin Media-O2 in a move set to intensify the challenge to BT’s infrastructure builder Openreach. Top European News U.K.’s Fuel Crisis Has at Least a Week to Run as Army Steps In Adler Group Weighs Asset Sales to Cut Debt After Multiple Bids Amazon Rival Noon to Raise $2 Billion From Backers Including PIF Romanian Billionaire Petrescu Dies in Plane Crash Near Milan In FX, the broader Dollar and index remain caged to a tight range, with the latter within a narrow 93.900-94.104 band after last week printing a new YTD peak at 94.504. The Dollar remains on standby as risk events are abundant this coming week, including deliberations on Capitol Hill and Friday’s NFP. In terms of the developments in Washington, congressional leaders set a new unofficial month-end deadline to pass the infrastructure bill, and USD 3.5tln spending package, and House progressives were reported to offer to reduce spending to save the bill and are willing to compromise on the USD 3.5tln amount with limits but rejected moderate Democrat Senator Manchin’s USD 1.5tln offer. Over to the Fed and a story to keep on the radar - Fed’s Clarida (seen as the nucleus of the Fed) reportedly shifted out of a bond fund into a stock fund last year, which occurred a day prior to Fed Chair Powell issuing a statement of potential policy action due to the pandemic. A spokesperson passed this off as “pre-planned” balancing, but a similar situation led to the early resignation of Kaplan and Rosengren. Elsewhere, USTR Tai is to today unveil the China trade policy following a top-to-bottom review of the Trump admin’s tariffs and other measures. The pre-release noted that the US would begin a process to exempt certain products from tariffs on Chinese imports, with the US also seeking a meeting on Phase 1. That being said, officials noted that all tools remain on the table when asked about further tariffs. Net-net, the release was constructive and, as such, provided tailwinds to the CNH, whereby USD/CNH dipped from 6.4560 to a low of 6.4385. AUD, NZD, CAD - The non-US Dollars somewhat vary with the Loonie attached to price action in the oil complex heading into the OPEC+ meeting later today. The NZD outperforms in the G10 bunch, with the AUD on the other side of the spectrum in what is a busy central bank week for the antipodeans. The AUD/NZD cross will likely take some focus as the RBNZ is poised to hike its OCR, whilst the RBA is seen holding policy steady. AUD/NZD has made its way back towards 1.4050 from its 1.0485 overnight high. NZD/USD meanders around 0.6950 (0.6927-53 range) whilst AUD/USD hovers around the 0.7250 mark (where AUD 1bln of OpEx resides), with the 21 DMA at 0.7295 and the 50 at 0.7311. EUR, GBP - Both European majors trade relatively flat in the European morning, but Brexit rhetoric has ramped up with UK Brexit Minister Frost warning the EU that the UK is prepared to trigger Article 16 unless the EU agrees to replace the Northern Ireland Protocol. There were separate reports that ministers will be given a deadline of the end of next month to decide on whether to suspend the Northern Ireland Brexit deal unilaterally, and senior sources warned that unless the EU was prepared to engage in a “serious negotiation” during the coming weeks, the government would have no choice but to suspend the deal by December. EUR/GBP topped its 100 and 21 DMAs (both at 0.8566) after finding a floor at its 100 DMA (0.8546). EUR/USD is back above 1.1600 (vs 1.1588 base) with EUR 1bln options expiring at the figure. GBP/USD hovers mid-range between 1.3534-77. In commodities, WTI and Brent front-month futures have clambered off worst levels but remain tentative ahead of the OPEC+ confab later today (full preview in the Newsquawk Research Suite). In terms of the long and short of it, markets expect OPEC+ to stick to its plan of raising monthly oil output by +400k BPD; albeit, some look for a larger-than-planned hike. Oil journalists have said this morning that despite the noise surrounding a greater-than-planned hike, ministers expect the current plan to be maintained, although drama in the meeting cannot be omitted. Upside during the European session coincided with headlines suggesting “OPEC+ is seen keeping output policy unchanged”, citing sources, although this was poorly phrased as it incorrectly intimates production being unchanged as opposed to plans for the 400k BPD hike being unchanged. Other things to be aware of aside from OPEC, BioNTech CEO expects the virus to likely mutate and that a new vaccine formulation could be required by the middle of next year, according to the FT, whilst the Gulf of Oman has seen cyclone Shaheen hit the area, although exports are not expected to be impacted yet aside from a delay in loadings. WTI Nov resides just under 76/bbl (75.30-76.20 range) whilst Brent Dec hovers sub USD 79.50/bbl (78.75-79.50/bbl range.) Elsewhere, spot gold and silver have been drifting lower in tandem with the rise in yields seen throughout the morning, with the former briefly dipping under USD 1,750/oz whilst spot silver fell under USD 22.40/oz. Turning to base metals, LME copper posts modest gains and remains north of USD 9,000/t, with some dip-buying being cited. US Event Calendar 10am: Aug. Cap Goods Ship Nondef Ex Air, prior 0.7% 10am: Aug. Cap Goods Orders Nondef Ex Air, prior 0.5% 10am: Aug. -Less Transportation, prior 0.2% 10am: Aug. Factory Orders Ex Trans, est. 0.4%, prior 0.8% 10am: Aug. Factory Orders, est. 1.0%, prior 0.4% 10am: Aug. Durable Goods Orders, est. 1.8%, prior 1.8% 10am: Fed’s Bullard Takes Part in Panel Discussion on the Economy DB's Jim Reid concludes the overnight wrap It’s certainly an odd financial world at the moment. The negatives are obvious and revolve mostly around delta, weaker than expected growth, the energy crisis, ever higher inflation and tighter central bank policy. The positives are that the base effects with numerous lockdowns imposed in Q4 2020 to at least the start of Q3 2021 mean that it won’t be that difficult for growth to still be numerically healthy for a few more quarters. So once the disappointment of growth not being as high as was hoped at this stage fades we should still be left with decent growth. Famous last words but covid should play less and less part in our lives over the year ahead as vaccines and better treatments (eg Merck antiviral pill news on Friday) become more and more widespread. In addition, stimulus and excess savings remain high and financial conditions are still very loose. While regular readers will know I’ve long been beating the drum on higher inflation and will continue to do so, I’m not convinced that growth is rolling over enough for stagflation to be the best description of the outlook for the next 12 months. However I suppose much depends on how you define it. Whilst on the topic of the energy crisis, the world is full of pictures of the UK population queuing for petrol because of a perceived shortage of HGV drivers. We’ll never know if there was actually a shortage that would have threatened fuel supplies as when the story broke 10 days ago panic set in and we had a fuel run (not as shocking as a bank run but formed from the same cloth) as the population desperately tried to refuel. My wife decided to hold out thinking the situation would resolve itself. However by Saturday night we had 10 miles left in the tank and during the day she had passed 6-7 petrol stations with either no fuel or huge queues. As we were putting the kids to bed she announced that she was getting desperate and stressed about it and was going to go out now as she was worried she wouldn’t be able to take the kids to school this week if she didn’t go out to the local area to try to find petrol. I said she was crazy to go at peak time (partly as I didn’t want to put the kids to bed alone - tough on crutches) and urged her to go very early Sunday morning instead. She ignored me and ventured out on what I thought was a suicide mission. 20 minutes later she was back with a full tank! I’ve no idea how and I won’t ask! I apologised! Outside of all the ongoing energy and stagflation chatter, all roads this week point to payrolls Friday as unless there is a marked deterioration across the whole sweep of labour market indicators within the report, this will likely be the catalyst to cement the November taper barring an exogenous or market shock. Investors will also be increasingly focused on the US debt ceiling deadline, whilst Congress simultaneously grapples with the infrastructure bill and the reconciliation package. Elsewhere on the political scene, coalition negotiations in Germany will be important to look out for, as the parties seek to form a government after the election. Before we look ahead, markets have started the week with a risk-off tone, with Asian equities including the Hang Seng (-2.17%), Kospi (-1.62%), the Nikkei (-0.95%) all moving lower while markets in China remain closed. Stocks pared gains on the news that Evergrande’s trading had been suspended in Hong Kong, with a filing from the Hong Kong Stock Exchange saying that this was “pending the release by the Company of an announcement containing inside information about a major transaction.” Meanwhile Bloomberg reported earlier that Evergrande had guaranteed a dollar note worth $260m with an official due date of Oct 3 by Jumbo Fortune Enterprises, making the effective due date today since maturity was on a Sunday. Elsewhere in Asia, NHK reported that Japan’s incoming Prime Minister, Fumio Kishida, planned to hold a general election on October 31, and looking forward, US equity futures are also pointing lower, with those on the S&P 500 down -0.32%. Looking ahead, the US jobs report will be one of the main macro highlights this week, and follows last month’s release that strongly underwhelmed expectations, with nonfarm payrolls growth of just +235k in August being the slowest since January. So another poor release would not be welcome news even if it did reflect labour shortages. In terms of what to expect this time around, our US economists are forecasting a pickup in September, with nonfarm payrolls growing by +400k, and the unemployment rate ticking down to a post-pandemic low of 5.1%. Remember in the weak report last month, yields rose on the day as markets focused on the wage increases rather than the poor headline number. As we said at the time the bond reaction to last month’s report probably helped signal the end of the extreme positive technicals and short positioning in treasuries. Over the summer strong inflation and decent data couldn’t help treasuries sell off, indicating bullet proof technicals but the period around last month’s release seemed to turn the tide the other way a bit. The other important data release this week will be the global services and composite PMIs out tomorrow, which will give an indication of how the economy has fared into the end of Q3. That said, the flash readings we’ve already had have indicated slowing growth momentum across the major economies, so it will be interesting to see where things progress from here. Turning to the US, negotiations in Congress will be in focus as legislators face the debt ceiling deadline this month (expected to be breached around October 18th according to Treasury Secretary Yellen last week), just as the Democrats are also seeking to pass a $550bn bipartisan infrastructure bill and a reconciliation package. On Saturday, Speaker Pelosi seemed to suggest that the new deadline was October 31st for the bipartisan bill which highlights how much difference there still is between the progressives and moderates on the reconciliation package. Will they eventually find a compromise for a lower amount than the original $3.5tn (maybe around $2tn) that makes nether side happy but gets the legislation through? Staying on the political scene, there’ll also be a focus on coalition negotiations in Germany, where exploratory talks have now begun between the parties. The Greens and the liberal FDP will be key to forming a majority in the new Bundestag, with 210 seats between them, as both the centre-left SPD and the conservative CDU/CSU bloc still hope to lead the next coalition. Initial exploratory talks began with the SPD yesterday, and the FDP have also spoken to the CDU/CSU, with the Greens set to follow tomorrow. On the central bank side it’s a quieter week ahead, with the two G20 policy decisions expected from the Reserve Bank of Australia (tomorrow) and the Reserve Bank of India (Friday). In Australia, our economist is expecting no change in policy and a reaffirmation of their dovish policy outlook. And in India, our economist also expects the MPC to keep all key policy rates unchanged, with our base case remaining for a reverse repo rate liftoff starting from December. The day-by-day calendar is at the end as usual. Back to last week, and global equity markets slid for the third week out of the last four as the S&P 500 fell -2.21%, with a +1.15% increase on Friday not stopping the index from having its worst week since the end of February. The losses were primarily led by growth and technology stocks as the NASDAQ declined -3.20% on the week, while cyclicals such as banks (+1.92%) and energy (+5.78%) stocks outperformed. European equities similarly fell back, as the STOXX 600 ended the week -2.24% lower after Friday’s -0.42% loss came prior to a late US rally. Global sovereign bonds sold off for a sixth straight week, though most of that selling came in the first two days as the global risk-off tone caused investors to search for havens. US 10yr Treasury yields still ended the week up +1.1bps, despite Friday’s -2.6bp decline. Bond yields in Europe moved higher as well, with those on 10yr bunds increasing +0.4bps, to trade at their highest levels since early-July. And 10yr yields on French OATs (+1.2bps) and Italians BTPs (+3.1bps) also rose further. UK gilts underperformed them all with yields increasing +7.7bps. The major driver of the move in global yields was rising inflation expectations with US 10yr breakevens increasing +4.5bps, while 10yr bund and breakevens rose +9.3bps to reach their highest level since 2013 and gilt breakevens (+3.5bps) rose to their highest level since 2008 even though they were much higher mid-week. The US September ISM manufacturing survey rose to 61.1 from 59.9 in the prior month even as supply bottlenecks intensified. This along with strong demand readings from businesses and consumers have led to higher prices which are mostly being passed onto consumers. This was seen in the PCE deflator data from Friday which showed prices rose 4.3% (4.2% expected) y/y with the core reading increasing 3.6% (3.5% expected) y/y. The University of Michigan survey showed respondents’ inflation expectations in a year dropped slightly from the initial reading 4.6% (4.7% initial , 4.8% exp), which was in-line with last month. 5-10yr expectations remain elevated at 3.0%. Overall the sentiment reading of 72.8 (71.0 prior) was better than the initial survey but still was the fifth worst reading in a decade, with only last month and the early months of the pandemic having been lower. Separately, Euro-area inflation reached its highest level since September 2008 on Friday as the headline September CPI print registered at 3.4% y/y (3.3% expected) in September, fuelled by the cost of energy and travel. Meanwhile, in Europe the manufacturing PMI readings were largely in-line with the preliminary readings with the Euro Area print sitting at 58.6 (58.7 prior) with Germany (58.4) and France (55.0) both just under their prior readings. Tyler Durden Mon, 10/04/2021 - 07:55.....»»

Category: dealsSource: nytOct 4th, 2021

UK media co. takes 16,000 s/f in midtown

Cushman & Wakefield announced today that the real estate services firm has arranged a long-term, 16,000-square-foot, full-floor lease for Future plc at 130 West 42nd  Street in Midtown Manhattan. Cushman & Wakefield’s David Dusek represented the tenant in the transaction. Brad Needleman and Matthew Augarten of Newmark represented the landlord,... The post UK media co. takes 16,000 s/f in midtown appeared first on Real Estate Weekly. Cushman & Wakefield announced today that the real estate services firm has arranged a long-term, 16,000-square-foot, full-floor lease for Future plc at 130 West 42nd  Street in Midtown Manhattan. Cushman & Wakefield’s David Dusek represented the tenant in the transaction. Brad Needleman and Matthew Augarten of Newmark represented the landlord, Tribeca Associates. “Future plc is quickly expanding across the United States and has a sizeable presence in New York City,” said Dusek. “130 West 42nd Street offered Future plc a move-in ready, plug-and-go space. Tribeca Associates understood the tenant’s need for flexibility to continue expanding and we were able to reach terms that were desirable for both the tenant and landlord.” Future plc is a global multi-platform media company based in the UK that is the name behind more than 220 market leading brands that span the technology, games, TV and entertainment, women’s life style, real life, music, creative and photography, sports, home interest and B2B sectors. In 2016, Future plc started to expand its web and print portfolio through a series of acquisitions and has continued diversifying its portfolio through 2021. Most recently, Future plc acquired 12 magazines, including multiple from Dennis Publishing, in August 2021. 130 West 42nd Street is a 250,000 s/f, 29-story office property situated between Sixth Avenue and Broadway. The post UK media co. takes 16,000 s/f in midtown appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyOct 13th, 2021

Futures Reverse Losses Ahead Of Key CPI Report

Futures Reverse Losses Ahead Of Key CPI Report For the second day in a row, an overnight slump in equity futures sparked by concerns about iPhone sales (with Bloomberg reporting at the close on Tuesday that iPhone 13 production target may be cut by 10mm units due to chip shortages) and driven be more weakness out of China was rescued thanks to aggressive buying around the European open. At 800 a.m. ET, Dow e-minis were up 35 points, or 0.1%, S&P 500 e-minis were up 10.25 points, or 0.24%, and Nasdaq 100 e-minis were up 58.50 points, or 0.4% ahead of the CPI report due at 830am ET. 10Y yields dipped to 1.566%, the dollar was lower and Brent crude dropped below $83. JPMorgan rose as much as 0.8% in premarket trading after the firm’s merger advisory business reported its best quarterly profit. On the other end, Apple dropped 1% lower in premarket trading, a day after Bloomberg reported that the technology giant is likely to slash its projected iPhone 13 production targets for 2021 by as many as 10 million units due to prolonged chip shortages. Here are some of the biggest U.S. movers today: Suppliers Skyworks Solutions (SWKS US), Qorvo (ORVO) and Cirrus Logic (CRUS US) slipped Tuesday postmarket Koss (KOSS US) shares jump 23% in U.S. premarket trading in an extension of Tuesday’s surge after tech giant Apple was rebuffed in two patent challenges against the headphones and speakers firm Qualcomm (QCOM US) shares were up 2.7% in U.S. premarket trading after it announced a $10.0 billion stock buyback International Paper (IP US) in focus after its board authorized a program to acquire up to $2b of the company’s common stock; cut quarterly dividend by 5c per share Smart Global (SGH US) shares rose 2% Tuesday postmarket after it reported adjusted earnings per share for the fourth quarter that beat the average analyst estimate Wayfair (W US) shares slide 1.8% in thin premarket trading after the stock gets tactical downgrade to hold at Jefferies Plug Power (PLUG US) gains 4.9% in premarket trading after Morgan Stanley upgrades the fuel cell systems company to overweight, saying in note that it’s “particularly well positioned” to be a leader in the hydrogen economy Wall Street ended lower in choppy trading on Tuesday, as investors grew jittery in the run-up to earnings amid worries about supply chain problems and higher prices affecting businesses emerging from the pandemic. As we noted last night, the S&P 500 has gone 27 straight days without rallying to a fresh high, the longest such stretch since last September, signaling some fatigue in the dip-buying that pushed the market up from drops earlier this year. Focus now turn to inflation data, due at 0830 a.m. ET, which will cement the imminent arrival of the Fed's taper.  "A strong inflation will only reinforce the expectation that the Fed would start tapering its bond purchases by next month, that's already priced in," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. "Yet, a too strong figure could boost expectations of an earlier rate hike from the Fed and that is not necessarily fully priced in." The minutes of the Federal Reserve's September policy meeting, due later in the day, will also be scrutinized for signals that the days of crisis-era policy were numbered. Most European equities reverse small opening losses and were last up about 0.5%, as news that German software giant SAP increased its revenue forecast led tech stocks higher. DAX gained 0.7% with tech, retail and travel names leading. FTSE 100, FTSE MIB and IBEX remained in the red. Here are some of the biggest European movers today: Entra shares gain as much as 10% after Balder increases its stake and says it intends to submit a mandatory offer. Spie jumps as much as 10%, the biggest intraday gain in more than a year, after the French company pulled out of the process to buy Engie’s Equans services unit. Man Group rises as much as 8.3% after the world’s largest publicly traded hedge fund announced quarterly record inflows. 3Q21 net inflows were a “clear beat” and confirm pipeline strength, Morgan Stanley said in a note. Barratt Developments climbs as much as 6.3%, with analysts saying the U.K. homebuilder’s update shows current trading is improving. Recticel climbs 15% to its highest level in more than 20 years as the stock resumes trading after the company announced plans to sell its foams unit to Carpenter Co. Bossard Holding rises as much as 9.1% to a record high after the company reported 3Q earnings that ZKB said show strong growth. Sartorius gains as much as 5.9% after Kepler Cheuvreux upgrades to hold from sell and raises its price target, saying it expects “impressive earnings growth” to continue for the lab equipment company. SAP jumps as much as 5% after the German software giant increased its revenue forecast owing to accelerating cloud sales. Just Eat Takeaway slides as much as 5.8% in Amsterdam to the lowest since March 2020 after a 3Q trading update. Analysts flagged disappointing orders as pandemic restrictions eased, and an underwhelming performance in the online food delivery firm’s U.S. market. Earlier in the session, Asian stocks posted a modest advance as investors awaited key inflation data out of the U.S. and Hong Kong closed its equity market because of typhoon Kompasu. The MSCI Asia Pacific Index rose 0.2% after fluctuating between gains and losses, with chip and electronics manufacturers sliding amid concerns over memory chip supply-chain issues and Apple’s iPhone 13 production targets. Hong Kong’s $6.3 trillion market was shut as strong winds and rain hit the financial hub.  “Broader supply tightness continues to be a real issue across a number of end markets,” Morgan Stanley analysts including Katy L. Huberty wrote in a note. The most significant iPhone production bottleneck stems from a “shortage of camera modules for the iPhone 13 Pro/Pro Max due to low utilization rates at a Sharp factory in southern Vietnam,” they added. Wednesday’s direction-less trading illustrated the uncertainty in Asian markets as traders reassess earnings forecasts to factor in inflation and supply chain concerns. U.S. consumer price index figures and FOMC minutes due overnight may move shares. Southeast Asian indexes rose thanks to their cyclical exposure. Singapore’s stock gauge was the top performer in the region, rising to its highest in about two months, before the the nation’s central bank decides on monetary policy on Thursday. Japanese stocks fell for a second day as electronics makers declined amid worries about memory chip supply-chain issues and concerns over Apple’s iPhone 13 production targets.  The Topix index fell 0.4% to 1,973.83 at the 3 p.m. close in Tokyo, while the Nikkei 225 declined 0.3% to 28,140.28. Toyota Motor Corp. contributed the most to the Topix’s loss, decreasing 1.3%. Out of 2,181 shares in the index, 608 rose and 1,489 fell, while 84 were unchanged. Japanese Apple suppliers such as TDK, Murata and Taiyo Yuden slid. The U.S. company is likely to slash its projected iPhone 13 production targets for 2021 by as many as 10 million units as prolonged chip shortages hit its flagship product, according to people with knowledge of the matter Australian stocks closed lower as banks and miners weighed on the index. The S&P/ASX 200 index fell 0.1% to close at 7,272.50, dragged down by banks and miners as iron ore extended its decline. All other subgauges edged higher. a2 Milk surged after its peer Bubs Australia reported growing China sales and pointed to a better outlook for daigou channels. Bank of Queensland tumbled after its earnings release. In New Zealand, the S&P/NZX 50 index rose 0.2% to 13,025.18. In rates, Treasuries extended Tuesday’s bull-flattening gains, led by gilts and, to a lesser extent, bunds. Treasuries were richer by ~2bps across the long-end of the curve, flattening 5s30s by about that much; U.K. 30-year yield is down nearly 7bp, with same curve flatter by ~6bp. Long-end gilts outperform in a broad-based bull flattening move that pushed 30y gilt yields down ~7bps back near 1.38%. Peripheral spreads widen slightly to Germany. Cash USTs bull flatten but trade cheaper by ~2bps across the back end to both bunds and gilt ahead of today’s CPI release. In FX, the Bloomberg Dollar Spot Index fell by as much as 0.2% and the greenback weakened against all of its Group-of-10 peers; the Treasury curve flattened, mainly via falling yields in the long- end, The euro advanced to trade at around $1.1550 and the Bund yield curve flattened, with German bonds outperforming Treasuries. The euro’s volatility skew versus the dollar shows investors remain bearish the common currency as policy divergence between the Federal Reserve and the European Central Bank remains for now. The pound advanced with traders shrugging off the U.K.’s weaker-than-expected economic growth performance in August. Australia’s sovereign yield curve flattened for a second day while the currency underperformed its New Zealand peer amid a drop in iron ore prices. The yen steadied after four days of declines. In commodities, crude futures hold a narrow range with WTI near $80, Brent dipping slightly below $83. Spot gold pops back toward Tuesday’s best levels near $1,770/oz. Base metals are in the green with most of the complex up at least 1%. To the day ahead now, and the main data highlight will be the aforementioned US CPI reading for September, while today will also see the most recent FOMC meeting minutes released. Other data releases include UK GDP for August and Euro Area industrial production for August. Central bank speakers include BoE Deputy Governor Cunliffe, the ECB’s Visco and the Fed’s Brainard. Finally, earnings releases include JPMorgan Chase, BlackRock and Delta Air Lines. Market Snapshot S&P 500 futures up 0.1% to 4,346.25 STOXX Europe 600 up 0.4% to 459.04 MXAP up 0.2% to 194.60 MXAPJ up 0.4% to 638.16 Nikkei down 0.3% to 28,140.28 Topix down 0.4% to 1,973.83 Hang Seng Index down 1.4% to 24,962.59 Shanghai Composite up 0.4% to 3,561.76 Sensex up 0.8% to 60,782.71 Australia S&P/ASX 200 down 0.1% to 7,272.54 Kospi up 1.0% to 2,944.41 Brent Futures down 0.4% to $83.12/bbl Gold spot up 0.5% to $1,768.13 U.S. Dollar Index down 0.23% to 94.30 German 10Y yield fell 4.2 bps to -0.127% Euro little changed at $1.1553 Brent Futures down 0.4% to $83.12/bbl Top Overnight News from Bloomberg Vladimir Putin wants to press the EU to rewrite some of the rules of its gas market after years of ignoring Moscow’s concerns, to tilt them away from spot-pricing toward long-term contracts favored by Russia’s state run Gazprom, according to two people with knowledge of the matter. Russia is also seeking rapid certification of the controversial Nord Stream 2 pipeline to Germany to boost gas deliveries, they said. Federal Reserve Vice Chairman for Supervision Randal Quarles will be removed from his role as the main watchdog of Wall Street lenders after his title officially expires this week. The EU will offer a new package of concessions to the U.K. that would ease trade barriers in Northern Ireland, as the two sides prepare for a new round of contentious Brexit negotiations. U.K. Chancellor of the Exchequer Rishi Sunak is on course to raise taxes and cut spending to control the budget deficit, while BoE Governor Andrew Bailey has warned interest rates are likely to rise in the coming months to curb a rapid surge in prices. Together, those moves would mark a simultaneous major tightening of both policy levers just months after the biggest recession in a century -- an unprecedented move since the BoE gained independence in 1997. Peter Kazimir, a member of the ECB’s Governing Council, was charged with bribery in Slovakia. Kazimir, who heads the country’s central bank, rejected the allegations A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks were mixed following the choppy performance stateside with global risk appetite cautious amid the rate hike bets in US and heading into key events including US CPI and FOMC Minutes, while there were also mild headwinds for US equity futures after the closing bell on reports that Apple is set to reduce output of iPhones by 10mln from what was initially planned amid the chip shortage. ASX 200 (unch.) was little changed as gains in gold miners, energy and tech were offset by losses in financials and the broader mining sector, with softer Westpac Consumer Confidence also limiting upside in the index. Nikkei 225 (-0.3%) was pressured at the open as participants digested mixed Machinery Orders data which showed the largest M/M contraction since February 2018 and prompted the government to cut its assessment on machinery orders, although the benchmark index gradually retraced most its losses after finding support around the 28k level and amid the recent favourable currency moves. Shanghai Comp. (+0.4%) also declined as participants digested mixed Chinese trade data in which exports topped estimates but imports disappointed and with Hong Kong markets kept shut due to a typhoon warning. Finally, 10yr JGBs were steady with price action contained after the curve flattening stateside and tentative mood heading to upcoming risk events, although prices were kept afloat amid the BoJ’s purchases in the market for around JPY 1tln of JGBs predominantly focused on 1-3yr and 5-10yr maturities. Top Asian News Gold Edges Higher on Weaker Dollar Before U.S. Inflation Report RBA Rate Hike Expectations Too Aggressive, TD Ameritrade Says LG Electronics Has Series of Stock-Target Cuts After Profit Miss The mood across European stocks has improved from the subdued cash open (Euro Stoxx 50 +0.5%; Stoxx 600 +0.3%) despite a distinct lack of newsflow and heading into the official start of US earnings season, US CPI and FOMC minutes. US equity futures have also nursed earlier losses and trade in modest positive territory across the board, with the NQ (+0.5%) narrowly outperforming owing to the intraday fall in yields, alongside the sectorial outperformance seen in European tech amid tech giant SAP (+4.7%) upgrading its full FY outlook, reflecting the strong business performance which is expected to continue to accelerate cloud revenue growth. As such, the DAX 40 (+0.7%) outperformed since the cash open, whilst the FTSE 100 (-0.2%) is weighed on by underperformance in its heavyweight Banking and Basic Resources sectors amid a decline in yields and hefty losses in iron ore prices. Elsewhere, the CAC 40 (+0.3%) is buoyed by LMVH (+2.0%) after the luxury name topped revenue forecasts and subsequently lifted the Retail sector in tandem. Overall, sectors are mixed with no clear bias. In terms of individual movers, Volkswagen (+3.5%) was bolstered amid Handelsblatt reports in which the Co was said to be cutting some 30k jobs as costs are too high vs competitors, whilst separate sources suggested the automaker is said to be mulling spinning off its Battery Cell and charging unit. Chipmakers meanwhile see mixed fortunes in the aftermath of sources which suggested Apple (-0.7% pre-market) is said to be slashing output amid the chip crunch. Top European News The Hut Shares Swing as Strategy Day Feeds Investor Concern U.K. Economy Grows Less Than Expected as Services Disappoint Man Group Gets $5.3 Billion to Lift Assets to Another Record Jeff Ubben and Singapore’s GIC Back $830 Million Fertiglobe IPO In FX, the Dollar looks somewhat deflated or jaded after yesterday’s exertions when it carved out several fresh 2021 highs against rival currencies and a new record peak vs the increasingly beleaguered Turkish Lira. In index terms, a bout of profit taking, consolidation and position paring seems to have prompted a pull-back from 94.563 into a marginally lower 94.533-246 range awaiting potentially pivotal US inflation data, more Fed rhetoric and FOMC minutes from the last policy meeting that may provide more clues or clarity about prospects for near term tapering. NZD/GBP - Both taking advantage of the Greenback’s aforementioned loss of momentum, but also deriving impetus from favourable crosswinds closer to home as the Kiwi briefly revisited 0.6950+ terrain and Aud/Nzd retreats quite sharply from 1.0600+, while Cable has rebounded through 1.3600 again as Eur/Gbp retests support south of 0.8480 yet again, or 1.1800 as a reciprocal. From a fundamental perspective, Nzd/Usd may also be gleaning leverage from the more forward-looking Activity Outlook component of ANZ’s preliminary business survey for October rather than a decline in sentiment, and Sterling could be content with reported concessions from the EU on NI customs in an effort to resolve the Protocol impasse. EUR/CAD/AUD/CHF - Also reclaiming some lost ground against the Buck, with the Euro rebounding from around 1.1525 to circa 1.1560, though not technically stable until closer to 1.1600 having faded ahead of the round number on several occasions in the last week. Meanwhile, the Loonie is straddling 1.2450 in keeping with WTI crude on the Usd 80/brl handle, the Aussie is pivoting 0.7350, but capped in wake of a dip in Westpac consumer confidence, and the Franc is rotating either side of 0.9300. JPY - The Yen seems rather reluctant to get too carried away by the Dollar’s demise or join the broad retracement given so many false dawns of late before further depreciation and a continuation of its losing streak. Indeed, the latest recovery has stalled around 113.35 and Usd/Jpy appears firmly underpinned following significantly weaker than expected Japanese m/m machinery orders overnight. SCANDI/EM - Not much upside in the Sek via firmer Swedish money market inflation expectations and perhaps due to the fact that actual CPI data preceded the latest survey and topped consensus, but the Cnh and Cny are firmer on the back of China’s much wider than forecast trade surplus that was bloated by exports exceeding estimates by some distance in contrast to imports. Elsewhere, further hawkish guidance for the Czk as CNB’s Benda contends that high inflation warrants relatively rapid tightening, but the Try has not derived a lot of support from reports that Turkey is in talks to secure extra gas supplies to meet demand this winter, according to a Minister, and perhaps due to more sabre-rattling from the Foreign Ministry over Syria with accusations aimed at the US and Russia. In commodities, WTI and Brent front-month futures see another choppy session within recent and elevated levels – with the former around USD 80.50/bbl (80.79-79.87/bbl) and the latter around 83.35/bbl (83.50-82.65/bbl range). The complex saw some downside in conjunction with jawboning from the Iraqi Energy Minster, who state oil price is unlikely to increase further, whilst at the same time, the Gazprom CEO suggested that the oil market is overheated. Nonetheless, prices saw a rebound from those lows heading into the US inflation figure, whilst the OPEC MOMR is scheduled for 12:00BST/07:00EDT. Although the release will not likely sway prices amidst the myriad of risk events on the docket, it will offer a peek into OPEC's current thinking on the market. As a reminder, the weekly Private Inventory report will be released tonight, with the DoE's slated for tomorrow on account of Monday's Columbus Day holiday. Gas prices, meanwhile, are relatively stable. Russia's Kremlin noted gas supplies have increased to their maximum possible levels, whilst Gazprom is sticking to its contractual obligations, and there can be no gas supplies beyond those obligations. Over to metals, spot gold and silver move in tandem with the receding Buck, with spot gold inching closer towards its 50 DMA at 1,776/oz (vs low 1,759.50/oz). In terms of base metals, LME copper has regained a footing above USD 9,500/t as stocks grind higher. Conversely, iron ore and rebar futures overnight fell some 6%, with overnight headlines suggesting that China has required steel mills to cut winter output. Further from the supply side, Nyrstar is to limit European smelter output by up to 50% due to energy costs. Nyrstar has a market-leading position in zinc and lead. LME zinc hit the highest levels since March 2018 following the headlines US Event Calendar 8:30am: Sept. CPI YoY, est. 5.3%, prior 5.3%; MoM, est. 0.3%, prior 0.3% 8:30am: Sept. CPI Ex Food and Energy YoY, est. 4.0%, prior 4.0%; MoM, est. 0.2%, prior 0.1% 8:30am: Sept. Real Avg Weekly Earnings YoY, prior -0.9%, revised -1.4% 2pm: Sept. FOMC Meeting Minutes DB's Jim Reid concludes the overnight wrap So tonight it’s my first ever “live” parents evening and then James Bond via Wagamama. Given my daughter (6) is the eldest in her year and the twins (4) the youngest (plus additional youth for being premature), I’m expecting my daughter to be at least above average but for my boys to only just about be vaguely aware of what’s going on around them. Poor things. For those reading yesterday, the Cameo video of Nadia Comanenci went down a storm, especially when she mentioned our kids’ names, but the fact that there was no birthday cake wasn’t as popular. So I played a very complicated, defence splitting 80 yard through ball but missed an open goal. Anyway ahead of Bond tonight, with all this inflation about I’m half expecting him to be known as 008 going forward. The next installment of the US prices saga will be seen today with US CPI at 13:30 London time. This is an important one, since it’s the last CPI number the Fed will have ahead of their next policy decision just 3 weeks from now, where investors are awaiting a potential announcement on tapering asset purchases. Interestingly the August reading last month was the first time so far this year that the month-on-month measure was actually beneath the consensus expectation on Bloomberg, with the +0.3% growth being the slowest since January. Famous last words but this report might not be the most interesting since it may be a bit backward looking given WTI oil is up c.7.5% in October alone. In addition, used cars were up +5.4% in September after falling in late summer. So given the 2-3 month lag for this to filter through into the CPI we won’t be getting the full picture today. I loved the fact from his speech last night that the Fed’s Bostic has introduced a “transitory” swear jar in his office. More on the Fedspeak later. In terms of what to expect this time around though, our US economists are forecasting month-on-month growth of +0.41% in the headline CPI, and +0.27% for core, which would take the year-on-year rates to +5.4% for headline and +4.1% for core. Ahead of this, inflation expectations softened late in the day as Fed officials were on the hawkish side. The US 10yr breakeven dropped -1.9bps to 2.49% after trading at 2.527% earlier in the session. This is still the 3rd highest closing level since May, and remains only 7bps off its post-2013 closing high. Earlier, inflation expectations continued to climb in Europe, where the 5y5y forward inflation swap hit a post-2015 high of 1.84%. Also on inflation, the New York Fed released their latest Survey of Consumer Expectations later in the European session, which showed that 1-year ahead inflation expectations were now at +5.3%, which is the highest level since the survey began in 2013, whilst 3-year ahead expectations were now at +4.2%, which was also a high for the series. The late rally in US breakevens, coupled with lower real yields (-1.6bps) meant that the 10yr Treasury yield ended the session down -3.5bps at 1.577% - their biggest one day drop in just over 3 weeks. There was a decent flattening of the yield curve, with the 2yr yield up +2.0bps to 0.34%, its highest level since the pandemic began as the market priced in more near-term Fed rate hikes. In the Euro Area it was a very different story however, with 10yr yields rising to their highest level in months, including among bunds (+3.5bps), OATs (+2.9bps) and BTPs (+1.0bps). That rise in the 10yr bund yield left it at -0.09%, taking it above its recent peak earlier this year to its highest closing level since May 2019. Interestingly gilts (-4.0bps) massively out-performed after having aggressively sold off for the last week or so. Against this backdrop, equity markets struggled for direction as they awaited the CPI reading and the start of the US Q3 earnings season today. By the close of trade, the S&P 500 (-0.24%) and the STOXX 600 (-0.07%) had both posted modest losses as they awaited the next catalyst. Defensive sectors were the outperformers on both sides of the Atlantic. Real estate (+1.34%) and utilities (+0.67%) were among the best performing US stocks, though some notable “reopening” industries outperformed as well including airlines (+0.83%), hotels & leisure (+0.51%). News came out after the US close regarding the global chip shortage, with Bloomberg reporting that Apple, who are one of the largest buyers of chips, would revise down their iPhone 13 production targets for 2021 by 10 million units. Recent rumblings from chip producers suggest that the problems are expected to persist, which will make central bank decisions even more complicated over the coming weeks as they grapple with increasing supply-side constraints that push up inflation whilst threatening to undermine the recovery. Speaking of central bankers, Vice Chair Clarida echoed his previous remarks and other communications from the so-called “core” of the FOMC that the current bout of inflation would prove largely transitory and that underlying trend inflation was hovering close to 2%, while admitting that risks were tilted towards higher inflation. Atlanta Fed President Bostic took a much harder line though, noting that price pressures were expanding beyond the pandemic-impacted sectors, and measures of inflation expectations were creeping higher. Specifically, he said, “it is becoming increasingly clear that the feature of this episode that has animated price pressures — mainly the intense and widespread supply-chain disruptions — will not be brief.” His ‘transitory swear word jar’ for his office was considerably more full by the end of his speech. As highlighted above, while President Bostic spoke US 10yr breakevens dropped -2bps and then continued declining through the New York afternoon. In what is likely to be Clarida’s last consequential decision on monetary policy before his term expires, he noted it may soon be time to start a tapering program that ends in the middle of next year, in line with our US economics team’s call for a November taper announcement. In that vein, our US economists have updated their forecasts for rate hikes yesterday, and now see liftoff taking place in December 2022, followed by 3 rate increases in each of 2023 and 2024. That comes in light of supply disruptions lifting inflation, a likely rise in inflation expectations (which are sensitive to oil prices), and measures of labour market slack continuing to outperform. For those interested, you can read a more in-depth discussion of this here. Turning to commodities, yesterday saw a stabilisation in prices after the rapid gains on Monday, with WTI (+0.15%) and Brent Crude (-0.27%) oil prices seeing only modest movements either way, whilst iron ore prices in Singapore were down -3.45%. That said it wasn’t entirely bad news for the asset class, with Chinese coal futures (+4.45%) hitting fresh records, just as aluminium prices on the London Metal Exchange (+0.13%) eked out another gain to hit a new post-2008 high. Overnight in Asia, equity markets are seeing a mixed performance with the KOSPI (+1.24%) posting decent gains, whereas the CSI (-0.06%), Nikkei (-0.22%) and Shanghai Composite (-0.69%) have all lost ground. The KOSPI’s strength came about on the back of a decent jobs report, with South Korea adding +671k relative to a year earlier, the most since March 2014. The Hong Kong Exchange is closed however due to the impact of typhoon Kompasu. Separately, coal futures in China are up another +8.00% this morning, so no sign of those price pressures abating just yet following recent floods. Meanwhile, US equity futures are pointing to little change later on, with those on the S&P 500 down -0.12%. Here in Europe, we had some fresh Brexit headlines after the UK’s Brexit minister, David Frost, said that the Northern Ireland Protocol “is not working” and was not protecting the Good Friday Agreement. He said that he was sharing a new amended Protocol with the EU, which comes ahead of the release of the EU’s own proposals on the issue today. But Frost also said that “if we are going to get a solution we must, collectively, deliver significant change”, and that Article 16 which allows either side to take unilateral safeguard measures could be used “if necessary”. Elsewhere yesterday, the IMF marginally downgraded their global growth forecast for this year, now seeing +5.9% growth in 2021 (vs. +6.0% in July), whilst their 2022 forecast was maintained at +4.9%. This masked some serious differences between countries however, with the US downgraded to +6.0% in 2021 (vs. +7.0% in July), whereas Italy’s was upgraded to +5.8% (vs. +4.9% in July). On inflation they said that risks were skewed to the upside, and upgraded their forecasts for the advanced economies to +2.8% in 2021, and to +2.3% in 2022. Looking at yesterday’s data, US job openings declined in August for the first time this year, falling to 10.439m (vs. 10.954m expected). But the quits rate hit a record of 2.9%, well above its pre-Covid levels of 2.3-2.4%. Here in the UK, data showed the number of payroll employees rose by +207k in September, while the unemployment rate for the three months to August fell to 4.5%, in line with expectations. And in a further sign of supply-side issues, the number of job vacancies in the three months to September hit a record high of 1.102m. Separately in Germany, the ZEW survey results came in beneath expectations, with the current situation declining to 21.6 (vs. 28.0 expected), whilst expectations fell to 22.3 (vs. 23.5 expected), its lowest level since March 2020. To the day ahead now, and the main data highlight will be the aforementioned US CPI reading for September, while today will also see the most recent FOMC meeting minutes released. Other data releases include UK GDP for August and Euro Area industrial production for August. Central bank speakers include BoE Deputy Governor Cunliffe, the ECB’s Visco and the Fed’s Brainard. Finally, earnings releases include JPMorgan Chase, BlackRock and Delta Air Lines. Tyler Durden Wed, 10/13/2021 - 08:13.....»»

Category: blogSource: zerohedgeOct 13th, 2021

California property management company leases in Tempe

After expanding to Arizona through an acquisition in 2019, Oakland-based Mynd Property Management has been growing its Arizona presence and recently leased office space in Tempe......»»

Category: topSource: bizjournalsOct 12th, 2021

"Final Straw": Erdogan Signals New Turkish Military Operation In Syria, Sending Lira Plunging

"Final Straw": Erdogan Signals New Turkish Military Operation In Syria, Sending Lira Plunging On Monday Turkey's President Recep Tayyip Erdoğan announced that he's preparing "necessary steps" in Syria to eliminate the "YPG threat", Turkish media reported. The pledge of what appears to be a coming military operation along the Syrian border area comes after reports of two Turkish police officers killed and multiple more wounded in Azaz in northern Syria, according to an Interior Ministry press release Sunday. "We have run out of patience," Erdogan told reporters. "Turkey is determined to eliminate threats arising from northern Syria, either together with forces active there, or with our own means." Via Hurriyet Daily "The latest attack on our police and the harassment that targets our soil are the final straw," Erdogan said. Turkey considers Syria's Kurdish YPG an offshoot of the PKK - long dubbed a "terrorist" group that Ankara has for decades attempted to eradicate.  According Al Jazeera, citing Turkish officials, the police deaths were accompanied by rocket fire from Syrian Kurdish positions onto towns inside Turkey: Separately, projectiles that landed in two separate areas caused explosions in Turkey’s southern Gaziantep province, across the border from Syria’s Jarablus city, the governor’s office said. A third landed in Jarablus and was believed launched from a region controlled by the YPG... Turkey is being fought in Syria's north by both the US-backed Syrian Kurds and the Assad government, given Turkish national forces as well as anti-Assad jihadist groups supported by Turkey have annexed broad swathes of northern Syria territory along the border. Pro-Turkish forces have also over the years come under attack by Russian warplanes, creating lasting tensions between Ankara and the Kremlin. The Syrian and Russian governments have charged Turkey with severe and continued violations of Syria's sovereignty and acts of aggression, and there've been recent rumors that the Syrian Army is preparing for an assault of al-Qaeda occupied Idlib province. It's long been an open secret that Turkey is propping up the terror enclave.  Turkey has sought to justify its military occupation as based in "defensive" 'counter-terrorism' operations in accord with Article 51 of the United Nations Charter. Hence it continually claims to be under attack by Syrian Kurdish militias in the region, for which it had initially launched 'Operation Euphrates Shield in August 2016.  Meanwhile, also on Monday - likely in part in relation to Erdogan's signaling a new major military campaign inside northern Syria (further destabilizing the refugee-packed border region) - and following last month's unexpected rate cut by Turkey's central bank, the lira weakened to a fresh record low. "The currency extended losses to trade past 9.00 per U.S. dollar," Bloomberg recorded.  Tyler Durden Mon, 10/11/2021 - 20:00.....»»

Category: dealsSource: nytOct 11th, 2021

Trump received "undisclosed preferential treatment" on a $170 million loan from Deutsche Bank for his DC hotel, House Oversight Committee says

"Trump did not publicly disclose this significant benefit from a foreign bank while he was President," lawmakers said. The north entrance of the Trump International in Washington, DC. Mark Tenally/AP Deutsche Bank gave Trump "undisclosed preferential treatment" on a $170 million loan for his DC hotel, the House Oversight Committee said. The German bank allowed Trump to delay making principal payments on the loan, the committee said. "Trump did not publicly disclose this significant benefit from a foreign bank while he was President," the committee said. Former President Donald Trump "received undisclosed preferential treatment" on a $170 million loan from the German financial institution Deutsche Bank on his Washington, DC, hotel that he "personally guaranteed," the House Oversight Committee said on Friday. The committee's findings are based on documents obtained from the General Services Administration (GSA), a sprawling agency that helps keep the federal government running.The documents show Deutsche Bank in 2018 provided Trump a "significant financial benefit" by permitting him to delay making principal payments on the loan for a six-year period, the committee said in a statement."Without this deferral, the hotel may have needed to pay tens of millions of additional dollars to Deutsche Bank at a time when it was already facing steep losses. Mr. Trump did not publicly disclose this significant benefit from a foreign bank while he was President," the committee said. The statement also said that while Trump was president the Trump International Hotel received more than $3.7 million from foreign governments between 2017 to 2020, which raises "concerns about possible violations of the Constitution's Foreign Emoluments Clause."Trump in financial disclosures reported over $150 million in income from the hotel.But the hotel lost over $70 million between 2016 to 2020, the committee said, "leading the former President's holding company to inject at least $24 million to aid the struggling hotel."The committee said that Trump "grossly exaggerated" the financial status of the hotel with "misleading" disclosures, and seemingly hid "potential conflicts of interest stemming not just from his ownership of this failing business but also from his roles as the hotel's lender and the guarantor of its third-party loans."The Trump hotel in the nation's capital is located in the federally owned Old Post Office Pavilion, and the GSA manages the lease. The House Oversight Committee said the GSA failed to comply with its investigation into the hotel during the Trump era, but "finally" produced a "subset of requested documents" in July. Committee chairwoman Carolyn Maloney and subcommittee on government operations chairman Gerald Connolly sent a letter to the GSA requesting additional information."The documents provided by GSA raise new and troubling questions about former President Trump's lease with GSA and the agency's ability to manage the former President's conflicts of interest during his term in office when he was effectively on both sides of the contract, as landlord and tenant," the letter stated. Collectively, the documents show "that far from being a successful investment, the Trump Hotel was a failing business saddled by debt that required bailouts from President Trump's other businesses," the letter went on to say.Daniel Hunter, a spokesperson for Deutsche Bank, in a statement to Insider said, "The Committee's letter makes several inaccurate statements regarding Deutsche Bank and its loan agreement."Representatives for Trump, the GSA, and the House Oversight Committee did not immediately respond to Insider's requests for comment.Trump's refusal to divest himself from his business empire while president raised myriad conflict of interest concerns. The former president broke from his predecessors by not placing his assets in a blind trust, and scoffed at calls to distance himself from his businesses. In 2019, Trump called the emoluments clause "phony" as legal experts accused him of violating it. The foreign emoluments clause is enshrined in Article I, Section 9, Paragraph 8 of the US Constitution. The provision prohibits public officials from receiving gifts or cash from foreign governments without congressional approval.It states: "No Person holding any Office of Profit or Trust under [the United States], shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State."A New York Times review of Trump's tax returns released last year showed he earned $73 million in revenue from the Trump Organization's interests in foreign countries across the first half of his single-term presidency alone.Additionally, there's a domestic emoluments clause that bars the president from receiving money from the US government other than an annual salary.It states: "The President shall, at stated Times, receive for his Services, a Compensation, which shall neither be increased nor diminished during the Period for which he shall have been elected, and he shall not receive within that Period any other Emolument from the United States, or any of them."In September 2020, The Washington Post reported that Trump's properties raked in $1.1 million in tax dollars from the Secret Service since he entered the White House. Read the original article on Business Insider.....»»

Category: dealsSource: nytOct 8th, 2021

Ken Griffin Says Chicago Violence Like "Afghanistan On A Good Day", Claims Crypto Is "Jihadist" Attack On The Dollar

Ken Griffin Says Chicago Violence Like "Afghanistan On A Good Day", Claims Crypto Is "Jihadist" Attack On The Dollar Move over Jamie Dimon. There's another American billionaire financier who appears to be quietly launching a post-business political career. Or at the very least, one could be forgiven for believing Citadel founder and CEO Ken Griffin's appearance Monday at the Chicago Club of Economics was one long stump speech. Griffin's hour-plus dialogue, which received extensive coverage from the financial press, comes at an interesting time. On the Internet, "conspiracy theorists" (according to Citadel) have continued to raise questions about possible collusion (or other wrongdoings) between Citadel and Robinhood (and one Robinhood exec in particular) before RH pulled the plug on January's meme stonk mania. Meanwhile, over at the SEC, Gary Gensler has said he's looking into regulating - or possibly eliminating or greatly restricting - the practice of 'Payment for Order Flow", whereby electronic retail brokerages like Robinhood sell their customers' orders to Citadel and other market makers (but primarily Citadel). Griffin spoke with Bloomberg's Erik Schatzker about a seemingly endless list of topics, offering imminently quotable lines and thoughtful takes on everything from crypto, to political corruption in Illinois and Chicago's slow decline into anarchy, President Biden's policies, the prospect of another Trump presidency, PFOF, crypto, and of course COVID. The dialogue started with a question on vaccination rates and meandered on from there. Here's a breakdown of what Griffin said by topic. COVID When it comes to containing COVID, Griffin believes that the US's battle against the virus was lost right at the beginning. "The country lost this battle in the first attack, when we weren’t willing to do what it took to shut down America, to truly contain Covid-19. And then to get back out of the seat, and we’ve all just paid a catastrophic price as a result." When it comes to vaccination rates, Griffin believes they have plateaued at an "unacceptably low level". The Fed According to Griffing "the Fed's in a really tough box." The Fed is in "no man's land", Griffin says, and as far as being its chairman, "it is a job I would not be so grateful to have". He also noted that inflationary pressures in the US are "really unsettling." What to do? "If i were Chairman Powell, i stay the course that I'm on as unnerving as that is. to see inflation running this hot is really unsettling." It was at this point that Griffin said something really interesting about the Fed and it's credibility. It's not often that you hear the people who actually run our financial system speak frankly about how it really works. But Griffin essentially said 'the quiet part out loud' when the discussion turned to the Fed's credibility, which we have argued time and again is already in tatters - especially in the aftermath of the pandemic. "And let's be clear right now we don't have price stability. Inflation is at 5% is the highest number people here have seen in their lifetimes," Griffin said. He added that the Fed's position that these pressures are "transitory" is really just "a big bet". But regardless of the course of inflation in the future, Griffin said that the more pressing issue is protecting the Fed from being tainted by the same ugly politics that afflict Capitol Hill. The whole point of a central bank is it's supposed to be independent from politics. Whether this is actually true or not, it's the appearance of neutrality that's necessary to maintain global confidence in the dollar. "We need to maintain the belief in the separation of the Fed from the halls of Washington for the sake of a strong dollar. If you're part of the financial community...you need to push back on that". Fiscal Stimulus Griffin slammed the post-COVID stimulus for being to expansive, and claimed all those benefits are still "disincentivizing lower-wage workers". China The first question Griffin was asked about China was whether he still opposes a "decoupling" between China and the US. According to Griffin, this "decoupling" is already happening. "I think in important ways we have already decoupled." But on a day where Biden's Trade Rep Katherine Tai essentially plagiarized President Trump's tough-on-China economic policies during a major speech, Griffin insisted that there will be drawbacks to what the US is doing - including limiting access to semiconductors and software, which has further motivated Beijing to develop their own. "By restricting Chinese access to semiconductors and American software we have pushed them into a national campaign to eliminate their dependence on the west...imagine a world where there are two totally independent software stacks." When it comes to the technology arms race, Griffin warned, the US is bound to lose. "They graduate about twice as many graduates as we do half of them have stem degrees. They're producing about 5x more talented engineers per annum. The belief that we will be technologically dominant...is naive." Once China surpasses American tech, "not only will they use it in the biggest market in the world which is their own market...but they'll push it to all their trading partners, the Brazils of the world..." Ultimately, "I can imagine a world where we have been divided...and I don't like thinking about that outcome. I can picture a world in 30 to 40 years where, in some sense we have divided the world up between east to west technologically,” Griffin said. TSMC Could Beijing's lust for better semis technology accelerate their takeover of Taiwan? The tiny rogue territory has somehow emerged as a global leader in chip technology and production thanks to TSMC. "They don't have the entire solution, they still buy equipment from around the world, but talk about a powerhouse...and going back to my point earlier, China views Taiwan as part of China, there's no way they will be technologically important against American in the next 20 years. They will get there eventually." The Rust Belt That's not to say there haven't been drawbacks to the US engagement with Beijing, and according to Griffin is the fact that China's advances in manufacturing and the state support allowing their companies to be more competitive helped contribute to the hollowing out of thousands of American factory towns. In retrospect, this was a necessary sacrifice to entice the Chinese to embrace first capitalism, and then democracy. But increasingly it looks like the CCP has no intention to ever loosen its monopoly on power, meaning all those sacrifices were for nothing. "To have the most populous country in the world becoming increasingly capitalistic our belief was that them becoming capitalist would inevitably lead to them becoming a democracy. when we wrote the rules of rht road for them, we did it with the objective of making that happen." "The challenge that we underestimated is how devastating this was going to be for small towns that had its only factory shut down. It wasn't how it was going to impact NYC, Chicago or LA but how it was going to impact a small town in upstate New York. That was a terrible policy miscalculation not done in bad faith...but we didn't have the trainin or relocation strategies to help people get back on their feet." Competition Griffin believes America is facing an identity crisis, and needs to get back to its "core values." And a big part of that is embracing "competition". Enough of this 'everybody gets a trophy' bs. "We need to get back to our core values if we're going to win. What does that mean? Children need to be taught the virtue of earned success. It can't be that every time a race is won, there's two gold medal winners. and earned success is so important to the psychological success of our country. When people know they've done a job well..." there's a sense of pride. The reason why 1 in 10 Americans is severely depressed is that "when life revolves around your instagram and facebook account not how well you do on the sports field, how well you do in class...you've lost your way in life." "We need to teach our children math and science and how to write and how to compete and how to enjoy success....because we need these children to lead this country in 20 years." Griffin also complained that the scientists who developed the COVID jabs weren't properly venereated. "Why haven't we brought the scientists from Pfizer and Moderna to the White House to recognize them for the accomplishment of developing a vaccine in a year. These people are the heroes of our lifetime..." "There are no people who are children are looking up to to say 'I wanna be like her'" Griffin said. Teachers Unions One of the biggest causes of the decay in the quality of public education, according to Griffin, are the teachers unions. He relayed how former Chicago mayor Rahm Emmanuel went to bat for the schools against the unions...and lost. That's why Chicago has one of the shortest school years, and shortest school days, in the country. "Our mayor went to bat to change that and got batted over the head by the teacher's union," he said. Biden Agenda Moving on to the subject of Biden's economic agenda, which is presently the subject of a Democratic civil war in Washington, Griffin said there was plenty in the bill he liked, but also plenty he opposed, starting with the price tag. "Let's just say thank God for Sen. Manchin," Griffin said. Debt Ceiling Griffin believes the responsibility for raising the debt ceiling lies with the Dems...whether or not that means falling back on reconciliation to bypass a GOP filibuster, or not. "We've played this game of chicken before...I hope somebody blinks before they go over the cliff. I do believe the Democrats have a responsibility....to push this forward." Payment for Order Flow Finally, the big one. Are hidden costs imposed by Citadel and other market makers via payment for order flow (PFOF) helping to line Griffin's pockets at the expense of retail traders? Of course not, he insisted. In fact, if you took away PFOF, Citadel would be just fine..."from the 100,000 feet view" at least, Griffin said. Even though the practice has been a major driver of profits at his firm, Griffin tried to frame PFOF as a nuisance cost, suggesting he would rather not have to "pay" for order flow at all. "Let us hope that we maintain the status quo. brokerage firms have a duty to secure the best price for their customers. That's the premise on which we compete that's the premise on which we win." Ultimately, losing PFoF would be "a huge loss" for traders who enjoy the lowest commissions in history right now (nothing), Griffin claimed, while adding that "let us hope that in Washington, they maintain the status quo." Ken Griffin discusses PFOF (1/2)#BanPFOF #KenGriffinLied pic.twitter.com/nprGSAzT1M — Antonio Martinez (@AntonioTheMexi) October 4, 2021 Ken Griffin discusses PFOF (2/2)#BanPFOF #KenGriffinLied pic.twitter.com/PwnVVNuex5 — Antonio Martinez (@AntonioTheMexi) October 4, 2021 Whatever the SEC decides regarding PFoF, "all i want to know are the rules of the road...If i have to drive on the left I'll drive on the left...just tell me to drive." Crypto While Griffin is certainly amused by crypto, he wishes all this energy could be channeled toward something that doesn't also inadvertently undermine the American financial system. Instead, Griffin sees crypto-mania as a "jihadist call"... Griffin Sees Crypto-Mania as ‘Jihadist Call’ Against the Dollar A mania which your Robinhood subsidiary is eagerly fanning... — zerohedge (@zerohedge) October 4, 2021 ...to attack and undermine the dollar. "I wish all this passion directed at crypto was redirected at making American stronger," adding that backing bitcoin over the dollar was a "Jihadist call". He also made a crack about how terribly energy inefficient bitcoin is, repeating a longstanding criticism. While he certainly has ethical objections to crypto, Griffin says he would absolutely let Citadel to get involved in the market if it's ever regulated. "If it were regulated, I would trade it because..it would be good to have a Tier 1 firm making prices." Chicago Griffin saved most of his anger for Gov. Pritzker and other Illinois elected officials. He started with a story of a conversation between him and Pritzker where Griffin claimed the governor refused to send in the National Guard to quell violence in the city because of the political optics. Since the last time Griffin spoke at the Economic Club in 2013, the City has gotten even worse. "Since the last time I spoke in 2013, 25,000 of my fellow Chicagoans have been shot. It is a disgrace that our governor will not insert himself into the challenge of addressing crime in our city. It won't look good to have men and women on corners on Michigan Avenue with assault weapons...well, if it would save the life of one child, I don't care. We need to try and start to take the state back inch by inch from people who put their politics first and the people second." On the subject of police, Griffin said: "We need our police officers to know that they are respected and welcomed as Americans." In fact, Griffin says Citadel has already started to dial back its presence in Chicago because of the safety issue before sharing an amusing crack about Chicago being more dangerous than Afghanistan. "We aren't as much in Chicago. It's becoming ever more difficult to have this as our global headquarters, a city that has so much violence. I mean Chicago is like Afghanistan on a good day. They tried to car jack the security detail that sits outside my apartment. It just shows you how deep crime runs in this city. There is nowhere you can feel safe walking home at 2130 at night. And it's really hard to recruit people to Chicago. When they read the headlines, theey know the facts. 20 years ago, this was a great place to raise a family...I could say that and be genuine...I can't give that speech today." As for New York City, Griffin warned that many of the same things he has seen in Chicago are starting to take place in New York City. Griffin added that Citadel's next big expansion will be office space in Miami, and that the company's time of remaining headquarter in Chicago will be measured in "years not decades". The Sun Belt Moving on from the Chicago discussion, Griffin believes that across the US, coastal blue states with high taxes will start to lose their economic edge to the Sun Belt, which has more business-friendly regulations. "Conditions are Better across the sun belt states, less regulation less taxes a workforce that's generally of the ethos of 'I'm here to earn it'. Northern cities still have a considerable advantage...those schools anchor our great northern cities. the south doesn't have that yet writ large. But as universities in the south continue to get better, you're going to see the balance of power shift from the north to the south as the ease of doing business in the south trumps the ease of hiring top employees in the north." Trump Finally, the big one. When it comes to President Trump, Griffin admits his economic policies were "pretty damn good." However, when asked about the prospect of another campaign in 2020, he said that "it's time for America to move on. The 4 years under president trump were so divisive it was not constructive for the country." He also said he was "appalled" by Trump's willingness to play identity politics. * * * Griffin's speech before the Chicago Club  the first major public appearance by Griffin since the "GameStopped" hearings back in Feb. Tyler Durden Mon, 10/04/2021 - 17:20.....»»

Category: blogSource: zerohedgeOct 4th, 2021

Bet on These 4 Hot Tech Stocks Instead of Micron (MU)

Here we pick four technology stocks that are better buys than Micron (MU), given the expected decline in bit shipments for the DRAM and NAND memory chips due to the industry-wide supply-chain hiccups. Micron Technology MU stock has had an impressive run on the bourse over the last year. Shares of the memory-chip maker have rallied 49.2%, significantly higher than the S&P 500’s gain of 29.7%.Micron is benefiting from the strong memory-chip demand from personal computer (PC) manufacturers, smartphone makers and data-center operators. The COVID-19 pandemic-induced restrictions and social-distancing measures are spurring demand for PCs and notebooks, as more and more workers and students are now working and learning from their homes.The work-and-learn-from-home necessity is also stoking demand for cloud storage. Furthermore, the social-distancing trend has boosted the usage of online services globally. Therefore, the data-center operators are enhancing their cloud-storage capacities in a bid to accommodate the skyrocketing demand for cloud services, which is, again, fueling demand for memory chips.Additionally, solid recoveries in sales across the smartphone and automotive industries are also spurring demand for Micron’s memory chips.Despite the solid demand for its memory chips, Micron’s near-term prospects look gloomy due to the industry-wide supply-chain constraints. During its recently-reported fourth-quarter fiscal 2021 earnings conference call, the memory chip maker stated that it is witnessing supply constraints for certain IC components, which might somewhat negatively impact bit shipments in the near term.The company also expects that bit shipments for the DRAM and NAND memory chips will decline in first-quarter fiscal 2022, as PC manufacturers are adjusting their memory and storage purchases due to the shortage of other components to complete PC assembling.Considering the negative impact of supply-chain constraints, it is therefore advisable to stay away from this Zacks Rank #5 (Strong Sell) stock in the near term.4 Tech Stocks to Buy Instead of MicronThough Micron’s prospects might not appear appealing at the moment, there are several stocks in the technology sector that offer good investment opportunities right now. These stocks have a favorable combination of a Growth Score of A or B, and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Per the Zacks’ proprietary methodology, stocks with this favorable combination offer good investment opportunities.Dropbox DBX is riding on the growing demand for its cloud-based team collaboration tools through which users can share files, photos, videos, songs and spreadsheets. This Zacks Rank #2 company’s strong focus on product innovation and introduction of solutions like updated Dropbox Spaces, HelloSign, Passwords, Vault and Computer Backup are anticipated to expand its user base.The solid demand for cloud storage, triggered by the pandemic-induced work-from-home wave, has been acting as a tailwind for the company. Further, integration with leading applications like Zoom, Slack and Atlassian will likely expand the Dropbox paying user base.Additionally, Dropbox’s innovative “Virtual First” initiative, under which employees will work from home majority of the time and meet once in a while for team collaboration, is expected to lower costs. The company’s plan to shift to hiring in low-cost regions is likely to boost profitability.Dropbox has a Growth Score of A. The Zacks Consensus Estimate for 2021 earnings stands at $1.44 per share, having moved 8 cents north in the past 60 days.Dropbox, Inc. Price and Consensus Dropbox, Inc. price-consensus-chart | Dropbox, Inc. QuoteNVIDIA NVDA has been benefiting from the healthy demand for GeForce desktop and notebook GPUs (Graphics Processing Units), which boost its gaming revenues. Moreover, a continuing Hyperscale demand is a tailwind for the company’s data-center business.Further, NVIDIA’s GPUs are rapidly gaining from the proliferation of artificial intelligence (AI). By applying its GPUs in AI models, the company is expanding its base in other untapped markets like automotive, healthcare and manufacturing.NVIDIA currently carries a Zacks Rank of #2 and has a Growth Score of B. The Zacks Consensus Estimate for its fiscal 2022 earnings is pegged at $4.20 per share, having been revised 5.8% upward in the past 60 days.NVIDIA Corporation Price and Consensus NVIDIA Corporation price-consensus-chart | NVIDIA Corporation QuoteServiceNow NOW is riding on robust growth in subscription revenues driven by the digital transformation of enterprises. As enterprises continue to cloudify their infrastructure, the company is poised to boost the uptake of its Now platform. Its workflow solutions have been winning customers on a regular basis.Further, ServiceNow’s expanding global presence, solid partner base and strategic buyouts are expected to bolster its growth prospects. Based on the strong adoption of its digital workflow solutions, ServiceNow predicts the 2021 subscription billings to grow year over year. Also, strategic alliances with the likes of Microsoft remain tailwinds.The stock currently carries a Zacks Rank #2 and has a Growth Score of B. The Zacks Consensus Estimate for 2021 earnings has been revised upward by couple of cents to $5.80 per share in the past seven days.ServiceNow, Inc. Price and Consensus ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. QuoteArrow Electronics ARW is benefiting from the solid uptrend in design activity across all regions. A strong momentum in the infrastructure software, next-generation hardware and hybrid cloud architectures is encouraging as well.Arrow’s core strength of providing the best-in-class services and easy-to-acquire technologies will fuel its growth in the future. Its continued focus on boosting the Internet of things capabilities are helping it expand in newer markets and gain customers.Furthermore, the latest forecast for the worldwide IT spending by Gartner is a positive for Arrow. The worldwide IT spending is anticipated to be $4.2 trillion in 2021, suggesting an increase of 8.6% from 2020. The research firm projects the worldwide spending on IT services to be up 9.8% year over year to $1.18 trillion this year.Arrow currently carries a Zacks Rank #2 and has a Growth Score of B. The Zacks Consensus Estimate for 2021 is pegged at $13.51 per share, which has been revised 13.4% upward over the past 60 days.Arrow Electronics, Inc. Price and Consensus Arrow Electronics, Inc. price-consensus-chart | Arrow Electronics, Inc. Quote 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report Dropbox, Inc. (DBX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 4th, 2021

Forget the suburbs, wealthy millennials are keeping big cities alive

Big cities still have appeal after the pandemic: 60% of the wealthiest millennials plan to buy a home in an urban area, per an Engel & Völkers report. Many wealthy millennials prefer city life. Daniel Zuchnik/Getty Images The wealthiest millennials prefer city life over the suburbs, per an Engel & Völkers report. 60% of them plan to buy a home in an urban area, which should help cities rebound post-pandemic. They want to stay close to their employer and maybe even to live with their parents. See more stories on Insider's business page. Wealthy millennials are keeping big cities alive.As the era of remote work sent many millennials into the suburbs to snap up homes, the wealthiest members of the generation have stayed put in their urban oases. That's according to a new report by Manhattan-based brokerage Engel & Völkers, which found that more than half of millennials earning over $250,000 plan to sell their home this year or next - and most aren't looking for picket fences in exchange.Sixty percent of this cohort is planning to buy a home in an urban city, while 40% hope to buy in the suburbs. Among wealthy millennials, 83% already own homes in urban areas.One of the reasons why might surprise you: It's so they can live with their parents. The majority of the cohort said their parents currently live with them or intend to live with them in the future, which is in line with the pandemic-era trend toward multigenerational living.There's also the idea that, despite the era of remote work, they may still need to be located near their company. Citygoers' relationships with the office won't change that much, economist Enrico Moretti recently told Bloomberg. With a day or two working from home each week, and three to four days in the office, professionals would still need to have a physical presence in the metro area to access certain types of careers and jobs. What the pandemic has done is extend the city's borders to the edge of the metro area, a reflection of an expanding regional labor market. People are moving, but within their city.As Moretti put it, "There's been so much emphasis on the idea that if people don't have to go into the office every day, more will move out to the exurbs. But it really just seems to mean that people can more easily sort themselves into the part of the metropolitan area where they want to live in. I mean, I'd rather live in the city."Urbanism expert Richard Florida told Insider back in February that big cities would thrive in the era of remote work. He said a newfound focus on personal interaction would reshape and revive them, with the neighborhood of the city taking on more of the functions of an office."People will gravitate to places where they can meet and interact with others outside of the home and outside of the office," he said. This means superstar cities still have a pull for young professionals, offering them both career opportunities and a new kind of flexibility. It's all good news for the economies of urban areas. Cities like New York City and San Francisco were hit hard when the pandemic first hit the US, standing to see a 10% drop in consumer spending because of remote work this past spring. The wealthiest millennials looking to make a long-term home in urban cities is only helping these areas rebound in their post-pandemic chapter.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderOct 1st, 2021

3 Reasons for JPMorgan"s (JPM) Recent Acquisition Spree

JPMorgan's (JPM) recent buyout spree is a way to diversify revenues beyond traditional banking services. Today, we will try to find out the primary reasons for the expansion initiatives. Of late, JPMorgan JPM has been expanding through on-bolt acquisitions, both domestic and international. Over the past several months, the Wall Street giant has announced several buyouts that are an attempt to find revenue streams beyond traditional banking services.Some of the notable transactions are approximately 75% stake in Volkswagen AG's VWAGY payment arm – Volkswagen Financial Services – and OpenInvest, Frank, and 55ip (all FinTech start-ups). JPMorgan has already launched its digital retail bank Chase in the U.K. while announcing deals to acquire 40% stake in Brazil's C6 Bank, and the U.K.-based robo-advisor Netmeg. Earlier in 2019, JPMorgan had acquired InstaMed, which has enabled it to expand into the lucrative U.S. healthcare payments market.Apart from these, JPMorgan, along with other global banks including Citigroup C, Morgan Stanley MS, UBS Group AG, and Goldman Sachs, is trying to capitalize on the opportunity to expand in China’s $53-trillion financial market, which is now open to foreign firms following the removal of restrictions on ownership. This August, it received regulatory approval to obtain full ownership of its China securities joint venture – J.P. Morgan Securities (China) Co.At that time, CEO Jamie Dimon had stated, “China represents one of the largest opportunities in the world for many of our clients and for JPMorgan Chase. Our scale and global capabilities give us a unique ability to help Chinese companies grow internationally and also support global investors as they expand into China’s maturing capital markets.”Per the data available from Refinitiv, Dealogic, and media reports, it is estimated that JPMorgan has acquired and invested in more than 30 companies so far this year. This is the most since 2012 when this Zacks Rank #2 (Buy) bank had inked more than 35 deals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.While so much is being discussed about JPMorgan’s recent expansion plans, today we are trying to understand the reasons for its recent binge.1. Counter Low Interest Rates: Since March 2020, the Federal Reserve has kept the interest rates at near-zero to support the U.S. economy from the coronavirus-related mayhem. Though in its September FOMC the central bank hinted at raising rates in late 2022, the low interest rate environment and continued weak demand for loans have hurt JPMorgan’s net interest income (NII) growth and resulted in the contraction of net yield on interest-earning assets over the past several quarters. For 2021, management anticipates NII to be approximately $52.5 billion, down almost 4% from the 2020 level.While this dismal macroeconomic scenario is not expected to reverse anytime soon, JPMorgan is making efforts to boost non-interest income, which supported its financials in 2020. Last year, non-interest income grew 12% on the back of a boom in trading and investment banking (IB) operations. While trading is normalizing, IB business and other fee-generating operations are expected to keep up the momentum, at least over the next few quarters.2. Compete With FinTechs: Banking sector as a whole is facing competition from FinTechs. Several big tech names including Amazon, Google, and Square Inc., among others, are trying to come up with some sort of business that will compete with traditional banks. Though it is well-known that these firms can’t directly serve clients by providing banking services thanks to strict banking regulations, banks like JPMorgan are increasingly facing pressure to technologically upgrade offerings. Thus, the company is heavily investing in artificial intelligence and other digital platforms, and even partnering/acquiring providers of such services as there has been a significant rise in demand for these amid the coronavirus pandemic.3.Scale Up Operations: With its huge size (more than 4,800 branches) and global presence, JPMorgan has all the means to further scale up its businesses. However, given its size, the company is not allowed to take over another bank owing to regulations. Now, the COVID-19 pandemic has given the company an opportunity to leverage its scale by filling up gaps in its offerings by undertaking such smaller deals, which doesn’t attract much regulatory scrutiny. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Volkswagen AG (VWAGY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 30th, 2021

3 HMO Stocks That Outperformed the S&P Index in a Year"s Time

Membership growth, mergers and buyouts, and investment in technology are likely to aid health insurance companies like ANTM, MOH, and UNH to outperform the S&P Index. The health insurance industry more popularly called Health Maintenance Organization (HMO) has been gaining from mergers and acquisitions, solid revenues, investments in technology, diversified businesses, contract wins, strong Medicaid and Medicare businesses and cost-curbing measures.The companies delivered solid results in the first half of the year, which even made some of the leading insurers hike their 2021 guidance.The industry players are also constantly forging alliances to penetrate geographies and meet demands of the market. Other constant factors, such as aging U.S. population, solvency levels and demand for Medicare poise the industry participants well for growth. Full government backing related to the Affordable Care Act also helped the industry gain a sweet spot.This reform instituted by the then President Barack Obama back in March 2010, has been one of the major drivers for the industry despite inducing some challenges. And the current President Joe Biden continued supporting ACA, which came as a welcoming relief to the industry players. The government’s support for the ACA is aimed at bringing more Americans under the health insurance coverage. This will directly buoy the health insurers’ top line.Further Upside Left?The overall bullish scenario makes us optimistic about the health insurance industry’s consistent growth, which should boost prospects of its participating companies with sound business fundamentals.Here are some of the factors that will positively impact the companies.Consistent With Mergers & Acquisitions Strategy: The health insurers continue to intensify their focus on the M&A strategy, which helped them boost their business scale and expand their presence. These initiatives led to an improved quality of care and brought about diversification benefits.Growing Senior Population: With aging population in the United States and seniors accounting for a higher percentage of the total population, overall demand for health insurance among the aged will soar. Medicare Advantage (MA) is the private version of the government Medicare program. MA plans are attractive to seniors on the back of declining member premiums, new benefits and less attractive medigap options.Increased Automation:  The industry also joined the movement of digital revolution by embracing cutting-edge technology for operational use. It was slow in this transition but the coronavirus pandemic accelerated the process.Use of chatbots and AI-based voice, assistants, augmented reality (AR), virtual reality (VR) and mixed reality (MR), mobile-based apps, robots, cloud computing, analytics among other technologies are expected to optimize healthcare delivery and workflow while minimizing unnecessary costs. This should lead to operational excellence and better customer experience. Insurers who can bridge the physical-virtual gap will be the frontrunners in the industry.Industry player UnitedHealth Group Inc. UNH leads the pack with a separate unit named OptumInsight, which offers software, data analytics and related services to healthcare providers.Rising Membership: The industry players are well-poised for growth on the back of several contract wins. Moreover, Biden allowed a Special Open Enrollment window on Feb 15 and extended the same to Aug 15. This gave Americans another chance to buy insurance coverage online on health exchanges. Biden's support for ACA led to a membership hike for companies like Centene Corporation CNC during the special enrollment period. This also made them raise their membership outlook for the current year. Per insurers, the current year might be the best selling phase for them. Insurers like UnitedHealth and Cigna Corp. CI are expanding their presence on the exchanges by tapping new areas.3 Stocks on WatchlistThe Zacks  HMO  industry, which is housed within the broader Zacks  Medical  sector, currently carries a Zacks Industry Rank #104. This places it in the top 41% of 252 Zacks industries.The Zacks HMO industry has grown 37.3% in a year’s time compared with the S&P Index’s rally of 39.4%.These health insurance stocks hold ample growth prospects to retain stability in the days ahead. Here are three stocks that presently have a Zacks Rank #3 (Hold) and managed to surpass the S&P Index in the past year. All the companies have a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Anthem Inc.’s ANTM strategic buyouts and collaborations and an improving top line along with the company’s expanded product portfolio should drive long-term growth. Its solid 2021 guidance impresses. Over the past 60 days, the stock has witnessed its 2021 earnings estimate move 0.2% north. In the past year, shares of the company have gained 54.8%.Molina Healthcare, Inc.’s MOH ability to engage in inorganic growth initiatives and capital deployment reflect an improved financial position. Its strong 2021 outlook encourages. Over the past seven days, the company has witnessed its 2022 earnings estimate move 1.5% north. Over the past year, the stock has surged 84.7%.UnitedHealth Group continued strong growth at Optum as well as UnitedHealthcare segments are driving revenues. Its favorable government business and a strong capital position are other positives. Over the past 30 days, the stock has witnessed its 2022 earnings estimate move 0.4% north. In the past year, shares of the company have surged 41.4%.Image Source: Zacks Investment Research Time to Invest in Legal Marijuana If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%. You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Molina Healthcare, Inc (MOH): Free Stock Analysis Report Cigna Corporation (CI): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 24th, 2021

Futures Slide Alongside Cryptocurrencies Amid China Crackdown

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

Category: blogSource: zerohedgeSep 24th, 2021

ESE Entertainment Inc. Announces Fiscal 2021 Third Quarter Financial Results

VANCOUVER, British Columbia, Sept. 23, 2021 (GLOBE NEWSWIRE) -- ESE Entertainment Inc. (TSXV:ESE) (OTCQB:ENTEF) (the "Company" or "ESE") is pleased to announce its unaudited interim consolidated financial results for the three and nine months ended July 31, 2021. All amounts are stated in Canadian dollars unless otherwise indicated. Third Quarter 2021 Financial and Key Operating Highlights: Revenue of $4.23 million for the three months ended July 31, 2021 vs the three months ended July 31, 2020 revenue of $0.14 million. Cash balance increased to $9.17 million and zero debt. Entered a content production contract with Bitcoin Vault for a major roll out of an esports and gaming talent show, strengthening ESE's presence in the global esports and gaming markets and expanding its production and media rights capabilities globally. Raised gross proceeds of $8.6 million in a bought deal public offering of units of the Company from institutional investors at a price of $1.40 per unit. Each unit is composed of one common share of the Company and one common share purchase warrant of the Company, exercisable at $1.95 for two years from issuance, subject to an acceleration right. Entered into a letter of intent to acquire Digital Motorsports, an Ireland-based provider of advanced simulation racing infrastructure, technology and support. This acquisition was subsequently completed on September 14, 2021. Improvement in bottom line, net loss of $1.26 million vs a net loss of $3.81 million in the previous quarter. Continued investment in platform development as well as improvement in back-office functions. Developing new software and technology for gaming and esports. "After significant growth in the ESE group, launching our acquisition Digital Motorsports and raising $8.6 million to accelerate expansion, Q3 was a standout quarter for ESE Entertainment," commented Konrad Wasiela, CEO ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaSep 23rd, 2021

U.S. Bancorp (USB) to Acquire MUFG Union Bank in $8B Deal

U.S. Bancorp's (USB) acquisition of MUFG Union Bank will enhance its existing West Coast franchise and accelerate the bank's strategy to serve as the premier lender by integrating the existing platforms. U.S. Bancorp USB has entered into a definitive agreement to acquire MUFG Union Bank’s core retail banking operations from Mitsubishi UFJ Financial Group MUFG for a cash-and-stock transaction valued at $8 billion, in a bid to boost its presence on the West Coast. The deal’s closure, expected in the first-half of 2022, is subject to the satisfaction of customary closing conditions and regulatory approvals. No shareholder approvals are required from both companies.In response to the announcement of the deal that will fortify its presence in California, Washington and Oregon, shares of U.S. Bancorp have rallied 2.6%.The deal would aid U.S. Bancorp’s primary subsidiary, U.S. Bank, with assets worth about $664 billion and bolster its status as the fifth largest retail bank in the United States. It will also have the required scale to compete with the largest consumer banks in California.At present, 80% of U.S. Bank transactions are being conducted digitally, a trend which is likely to continue, courtesy the Covid-19 pandemic. Thus, the combination will ease the maturing needs of customers of both MUFG Union Bank and U.S. Bank, by facilitating a larger access to digital banking tools and an expanded branch network.To help create wealth while delimiting how it serves diverse communities and diverse employees, U.S. Bank invests heavily in its communities. The acquisition will, thus, refine U.S. Bank’s competence to also commit to, invest in, and serve low and moderate-income communities and minority-led institutions.Notably, MUFG Union Bank entered into a consent order with the Office of the Comptroller of the Currency on Sep 20, over charges of non-compliance with the federal information-technology security rules. U.S. Bancorp said it "evaluated and incorporated these regulatory concerns into all aspects of the deal process, including due diligence, integration planning and valuation. The company believes it can successfully remediate the issues applicable to MUFG Union Bank in connection with the transaction, and that the order will not restrict U.S. Bancorp's ability to operate and grow its business as planned."In addition, U.S. Bancorp has deferred share repurchases until the second half of 2022 and also any planned buybacks have been re-allocated to the acquisition.Terms of the DealPer the terms of the agreement, the $8-billion deal includes $5.5 billion in cash and 44 million shares of U.S. Bancorp. This will lead to Mitsubishi UFG getting a 2.9% stake in U.S. Bancorp. Apart from the deal value, the Japanese parent will get dividends or share repurchases worth $9.6 billion at MUFG Union Bank, bringing the total value of the transaction to $17.6 billion.The transaction, nonetheless, does not include the purchase of MUFG Union Bank’s Global Corporate & Investment Bank, certain middle and back-office functions, and other assets.With this move, U.S. Bank will bring in more than one million consumer customers and about 190,000 small business customers on the West Coast. Apart from this, based on MUFG Union Bank’s Jun 30, 2021 balance sheet, U.S. Bank will gain loans worth $58 billion and deposits worth $90 billion. The combination will strengthen U.S. Bank’s deposit status in California from 10th to the fifth position, with deposits per branch surging 60%.Following the deal’s conclusion, U.S. Bank will retain all of MUFG Union Bank’s front-line branch employees.Financial BenefitsAssuming a 75% synergy phase-in and 8% accretive to earnings when fully integrated, the deal is expected to be 6% accretive to 2023 GAAP earnings per share for U.S. Bancorp. The deal is estimated to be dilutive to the 2022 earnings per share (including PAA and with foregone share repurchases) in low single-digit percentage, while over the medium term, it is projected to be accretive in the low single-digit percentage.The transaction has an estimated internal rate of return of more than 20%. Based on the expected capital to be delivered at close, the purchase price is estimated at 1.3X of MUFG Union Bank’s tangible book value.U.S. Bancorp expects to achieve pre-tax cost synergies (40% of estimated non-interest expenses) of nearly $900 million via real estate consolidation, technology and systems conversion, and other back-office adequacies. Of these, 25% will be realized next year, 75% in 2023 and 100%, thereafter. Revenue synergies have been identified but not modeled.Further, U.S. Bancorp expects to incur $1.2 billion in merger charges, of which 50% will be realized at closing and 50% in the second half of 2022.Our TakeU.S. Bancorp’s acquisitions over the past years have opened up new markets to the bank and fortified its existing footprint. In August, the company’s subsidiary inked an agreement to acquire Bento Technologies, a FinTech company that provides payment and expense management services to small and mid-size businesses. Its inorganic growth efforts, combined with the ongoing investments in innovative product enhancements, services and people, have strengthened its balance sheet and fee-based businesses besides increasing the market share.Over the past six months, shares of the company have gained 6.6%, outperforming 4.8% growth recorded by the industry.Image Source: Zacks Investment ResearchCurrently, U.S. Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other Banks Undertaking Similar MovesAcquisitions have been on the rise in the banking sector, of late. In the current scenario, banks are moving toward consolidation to dodge the heightened costs of regulatory compliance and increased investments in technology in a bid to remain competitive. The prevalent low interest-rate environment and other economic challenges following the pandemic have taken a toll on banks’ profitability.Earlier this month, State Street Corporation STT inked a deal to acquire Brown Brothers Harriman & Co.’s Investor Services business in a bid to ramp up and expand its core custodian business of servicing investment firms. State Street will shell out $3.5 billion in cash for this buyout.Last month, Seacoast Banking Corporation of Florida SBCF, the holding company for Seacoast National Bank, announced two separate merger agreements. It agreed to acquire Sabal Palm Bancorp, Inc., the parent company of Sabal Palm Bank based in Sarasota, FL, and Business Bank of Florida, Corp., the parent company of Florida Business Bank based in Melbourne, FL. Both deals are expected to close in the first quarter of 2022. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street Corporation (STT): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report Seacoast Banking Corporation of Florida (SBCF): Free Stock Analysis Report Mitsubishi UFJ Financial Group, Inc. (MUFG): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

Mitsubishi UFJ (MUFG) Mulling Divesture of U.S. Banking Arm

In a bid to streamline operations and compete better with the industry giants, Mitsubishi UFG (MUFG) is planning to divest its U.S. banking arm. Mitsubishi UFG MUFG is planning to offload its U.S. banking business, MUFG Union Bank, per a Bloomberg article. Citing people familiar with the matter, the article reported that the company is working with an advisor to explore its options. This move comes about 13 years after Mitsubishi UFG acquired the West Coast lender for $3.5 billion to boost its presence in the country.This is part of the Japanese bank’s strategy to better  compete with the industry biggies and financial technology lenders, as the U.S. regional banks are increasingly pursuing to pair up in the competitive market.Per the article, the Japan-based bank has had unofficial preliminary conversations with budding buyers but has not initiated any formal auction. Further, no final decision has been taken and there’s no surety that the deliberations will lead to a final transaction.MUFG Union Bank has more than 300 branches, largely located on the West Coast. It currently has assets worth roughly $132 billion, and provides retail banking, wealth management, corporate and commercial banking services.Over the years, Mitsubishi UFG has been expanding inorganically and continues to pursue its global growth opportunities. Since 2016, the bank has completed a number of acquisitions to expand its footprint globally.In addition, the company is focused on its updated Medium-term Business Plan (2021 to 2023) that includes the upgradation and reformation of its business model, and the exploration of new business areas. In this regard, Mitsubishi UFG has implemented the “Eleven Transformation Initiatives”, which are specific strategic initiatives designed to help it cope with the adverse changes in the domestic or overseas business environment, and achieve sustainable growth.However, the company has been facing challenges in controlling costs. Also, negative interest rates in Japan and strict regulations are concerns.Shares of the company have lost 2.3% in the past six months, against 1% growth of the industry.Image Source: Zacks Investment ResearchThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Notably, many regional banks in the United States are undertaking restructuring initiatives, as part of their plan to maximize profits amid the low rate environment. In continuation with its efforts to boost returns by streamlining operations internationally, Citigroup Inc. C signed a deal in August to sell its Australian consumer business unit to National Australia Bank for $882.24 million.Earlier this month, Cadence Bancorporation CADE entered into an agreement to divest its seven branches in Northeast Mississippi to The First, A National Banking Association, subsidiary of The First Bancshares, Inc. FBMS. This is in line with the joint Letter of Agreement signed between Cadence and BancorpSouth with the United States Department of Justice’s Antitrust Division in relation to the pending merger of BancorpSouth and Cadence. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report The First Bancshares, Inc. (FBMS): Free Stock Analysis Report Cadence Bancorp (CADE): Free Stock Analysis Report Mitsubishi UFJ Financial Group, Inc. (MUFG): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

Lancewood Capital expands lending platform’s national presence in 2021

Lancewood Capital, a New York-based commercial real estate lender, continues to be a reliable source of capital for real estate investors seeking short-term bridge loans and private lenders seeking senior note financing or credit facilities. Lancewood was founded seven years ago by a New York-based family office to invest in... The post Lancewood Capital expands lending platform’s national presence in 2021 appeared first on Real Estate Weekly. Lancewood Capital, a New York-based commercial real estate lender, continues to be a reliable source of capital for real estate investors seeking short-term bridge loans and private lenders seeking senior note financing or credit facilities. Lancewood was founded seven years ago by a New York-based family office to invest in real estate debt. Justin Godner and Matt Schatzle, who have been instrumental in driving Lancewood’s originations, attribute the firm’s success and growth to its unique family office capitalization structure and the strength of Lancewood’s team who work tirelessly to provide the best execution for borrowers.   When asked about the platform, Justin Godner spoke about Lancewood’s family office capitalization structure, which allows for near-bank pricing, structural creativity and custom-tailored financing for their borrowers which he believes is the firm’s competitive advantage. When asked about the marketplace, Matt Schatzle noted the liquidity in the in the debt market and the options available to today’s borrowers, which he said makes it very important to consistently execute for borrowers in order to win repeat business. Stephen Zaro, who recently started at the firm, noted that Lancewood’s ability to provide near-bank pricing allows for the firm to win a lot of business. While Lancewood continues its growth in the New York metro area – with over $100 million of capital deployed in the area in 2020 – the company also seeks to expand in other primary markets, particularly Atlanta, Florida, California and Texas, according to Tino Martins, Lancewood’s Director of Commercial Mortgages. The company has been increasingly active in Florida and California, where Matt Schatzle and Stephen Zaro have originated bridge loans and Justin Godner set up two $50 million senior credit facilities with $19.2 million funded to date for FL and CA based real estate lenders. Below are some of the platform’s recent closings:  $6,450,000 bridge loan to finance the completion of a construction project in the Tribeca neighborhood of New York, NY. Lancewood Capital was able to provide capital to complete the project at a near-bank rate. This transaction was structured by Matt Schatzle of Lancewood. $50,000,000 senior credit facility with initial advances of $7,500,000 and $3,300,000 for a Florida-based real estate lender. The underlying properties are located in Miami, FL. This transaction was structured by Justin Godner of Lancewood. $16,020,000 senior note financing for a $20,000,000 underlying loan secured by a mixed-use building in New York, NY. This transaction was structured by Justin Godner of Lancewood. $3,800,000 bridge loan to finance a mixed-use property in the Ybor City neighborhood of Tampa, FL. This transaction was structured by Stephen Zaro of Lancewood. $2,850,000 bridge loan to finance three buildings located in the Midtown East neighborhood of New York, NY. This transaction was structured by Matt Schatzle of Lancewood. $50,000,000 senior credit facility with an initial advance of $1,720,000 for a Seattle-based real estate lender. The underlying industrial property is located in Los Angeles, California. This transaction was structured by Justin Godner of Lancewood. $6,500,000 senior note financing for a $12,000,000 underlying loan secured by a single-family residence in Miami, FL. The underlying lender is Florida-based. This transaction was structured by Justin Godner of Lancewood. $3,410,000 bridge loan to finance a 31-unit multifamily building in Fordham Heights neighborhood of New York. This transaction was structured by Matt Schatzle of Lancewood. $12,000,000 senior note financing for a $20,000,000 underlying loan for the completion of a ground-up development in the SoHo neighborhood of New York, NY. This transaction was structured by Justin Godner of Lancewood. $1,400,000 bridge loan to finance a 26,000sf owner occupied industrial building in Boynton Beach, FL. The borrower needed a quick closing to pursue a time-sensitive acquisition opportunity. This transaction was structured by Matt Schatzle of Lancewood. $7,360,000 senior note financing to finance a newly-constructed condominium building in New York, NY. The units were recently brought to market and the developer needed a condo inventory loan. This transaction was structured by Justin Godner of Lancewood. $50,000,000 senior credit facility with an initial loan advance of $7,800,000 for a New York-based real estate lender. The underlying property is located in Brooklyn, NY. This transaction was structured by Justin Godner of Lancewood. $3,000,000 bridge loan secured by an eight-unit condo building in the Bushwick neighborhood of Brooklyn, NY and four mixed-use buildings in the downtown area of White Plains, NY. This transaction was structured by Matt Schatzle of Lancewood. The post Lancewood Capital expands lending platform’s national presence in 2021 appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklySep 21st, 2021

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