Microsoft launches new products to challenge Chromebooks

Microsoft has recently released the new inexpensive Surface Laptop SE, priced at US$249, and Windows 11 SE, suitable for entry-level CPUs, eyeing to penetrate into the education sector, which has been dominated by Chromebooks......»»

Category: topSource: digitimesNov 25th, 2021

J&J CEO Alex Gorsky On Splitting Into Two Public Companies

Following is the unofficial transcript of a CNBC interview with Johnson & Johnson (NYSE:JNJ) Chairman and CEO Alex Gorsky on CNBC’s “Squawk Box” (M-F, 6AM-9AM ET) today, Friday, November 12th.  Following is a link to video on Q3 2021 hedge fund letters, conferences and more J&J CEO Gorsky Breaks Down Plan To Split Into […] Following is the unofficial transcript of a CNBC interview with Johnson & Johnson (NYSE:JNJ) Chairman and CEO Alex Gorsky on CNBC’s “Squawk Box” (M-F, 6AM-9AM ET) today, Friday, November 12th.  Following is a link to video on if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more J&J CEO Gorsky Breaks Down Plan To Split Into Two Public Companies BECKY QUICK:  Let’s dig a little deeper into this top story of the morning, Johnson & Johnson announcing that it is going to be splitting into two publicly traded companies. Joining us right now first on “Squawk Box” is J&J’s Chairman and CEO Alex Gorsky. And Alex, thank you for being here today on this big news. The company goes all the way back to 1886 so this is a huge piece of news. Why now? ALEX GORSKY: Well, happy Friday, Becky. And look, before I answer your question directly, I know it's the day after, I just want to acknowledge Veterans Day and all those men and women in the military, the first responders, the firefighters, the policemen who make that kind of a sacrifice every day and their families so that we can actually do these kind of things. But look, this is a historic day for Johnson & Johnson. This is something that our board has deliberated about for some time and we really believe that by separating our consumer business into a separate publicly traded company, is in the best long-term interest of all of our stakeholders. Look our, we realize this is a very unique time. If you just think of the changing dynamics and innovation in technology, in markets and channels. And our goal is really to create two global leaders, a pharmaceutical and medical device business that has great potential today, but very strong pipelines for the future. And of course, the consumer business that's got iconic brands and we think we’ll be well positioned to even have better focus on their strategy around their execution, around their ability to allocate capital, and ultimately to accelerate growth and to touch more consumers around the world. So, we're excited and again, we think this represents a tremendous opportunity for all of our stakeholders. QUICK: Alex, you mentioned Veterans Day and thanking everyone who served. We should thank you as well. I know you went to West Point and were a captain, was it you were a captain in the army before you kind of moved into your corporate career. So, thank you for your service as well. When did this discussion start? How did it come about? When did you start thinking about this? GORSKY: Well, Becky, we think this is a big, we think this is a bold move. And it's one that has been a topic of discussion on our board of directors for some time. You know, it's important for iconic companies like Johnson & Johnson that in spite of the fact that we have been around for more than 135 years to constantly challenge our strategy. And, and we've been having those discussions on a, on a routine basis for over the past decade. But clearly over the past several years, when you just look at some of the underlying trends, the again this acceleration in innovation, particularly in our pharmaceutical segment, our medical device segment, when you take a look at these changing channels, and, and really where our pharma and our medical device business tends to be much more of a business to business relationship in the way that we work through other intermediaries, you know, compared to the consumer business and most importantly, where we see things going into the future. We feel it now is the right time to make this kind of a move and again, ultimately, it's going to allow us to reach more patients, more consumers, have more innovation, and execute in a much more focused way. QUICK: How will the split work? I know that you are transitioning to Executive Chairman come beginning of the year. I take it you'll be staying with the pharmaceutical and medical device company? GORSKY: Yes, well as you can understand and appreciate something like this is going to take some time. We're predicting it's going to take about 18 to 24 months. I'm going to be staying as the CEO through the end of this year, and I'm very proud to be handing off to Joaquin Duato as of January 3, but I'll be remaining as Executive Chairman. There's still a lot of details that need to be worked out on the exact timing, but the good news Beck is look, we've got a really deep bench of leaders here at Johnson & Johnson and we think both these businesses are going to be well positioned. Joaquin will continue to be the CEO for the Johnson & Johnson our pharmaceutical business, our medical device business. And we know we'll have the right leadership in place in our consumer business going forward as well. QUICK: This is one of the greatest brand names of all time. It's incredibly well known. Which of the two companies is going to keep Johnson & Johnson or do you brand both of them with Johnson & Johnson and run the risk of a little consumer confusion as there is with HP and HP, HPC? GORSKY: Well, our pharmaceutical business and medical business. I'm sorry, our pharmaceutical business our medical device business will be Johnson & Johnson. The name of the new company is yet to be known but, you know, you're absolutely right Becky. The consumer business as a standalone publicly traded company, think about it for a moment, it has more than four brands that are over a billion dollars in sales. We have more than 20 brands that are more than $150 million in sales and these are really iconic brands. Tylenol, Aveeno, Neutrogena, Listerine, Motrin, Benadryl, and we have a very strong pipeline. And again, we think by doing this, it’s going to provide them with even more agility, better opportunity for capital allocation, likely a way to even better configure their corporate versus the, the company structures, you know, and ultimately accelerate growth and to reach more consumers. QUICK: Is the plan definitely to spin it off as a separate company or the board is still considering that too? GORSKY: Well, look, we're looking at all options, but our intent is to spin this off as a publicly traded company. Yes. QUICK: And I take it the liabilities for the talcum powder cases that have come would go with the consumer business? GORSKY: Well, look, this is really about the future. We've been very clear in all of our filings regarding the legal issues that you just mentioned. But this is about creating growth for the future in Johnson & Johnson and the new consumer company. QUICK: Alex, just back to when these conversations started. You said the board's been considering it for a while. This is going back more than a year? Can you give us any kind of insight as to when these conversations really started picking up and taking a serious turn? GORSKY: Look, Becky, as you would expect every year when we go through our strategic planning process with the board, we have fundamental discussions where we try to take a look at where are the markets going in which we compete, what, how are our products doing, what is our pipeline look for the future? And we've consistently addressed this fundamental issue about the future of Johnson & Johnson in our portfolio but clearly over the last several years as we've seen some of these dynamics that I mentioned earlier evolve at an even faster rate, that became a catalyst. I think that the pandemic and COVID-19 particularly as, you know, we've seen on the pharmaceutical side, the development and the regulatory processes, you know, shift quite significantly and the opportunity that that could create, again for both our device and pharmaceutical business, but also the very nature of, you know, consumer demands, how they shop, how they’re thinking about the products that they actually want that also, we really played into this overall decision. QUICK: You know that people will look at the pharmaceuticals right now and maybe say that pipeline is strong there, but it is a riskier business. It goes through fluctuations of ups and downs. How do you make sure that it stays in a position where you have a lot in the pipeline? GORSKY: What's really important I believe in the pharmaceutical business Becky and something that we've demonstrated is to take a long-term approach to the way that you manage it. And what I'm very proud of in our group is that if you look over the last decade, whether we had patent expiries, whether we had, you know, launches of major competitors, we've been able to maintain an above market growth rate throughout that period. And it's because of our long-term focus, our willingness to invest both internally and externally in innovation, in bringing new really innovative products to the market, and also just the way that we're executing every day. And so, in spite of often multibillion dollar shifts due to those kinds of issues, we've been able to, you know, maintain consistent above market growth rates. And if we look at our pipeline going forward, we have, you know, more than 10 filings or approvals expected over the next several years, each over a billion dollars, more than 50-line extensions, 10 of which represent about a half a billion dollar opportunities. We remain very confident in our ability to do that as well. QUICK: Alex, Mike pointed out how both pharmaceuticals and consumer staples have underperformed the S&P. Has that been a frustration to you? And why do you think that is? GORSKY: Well, look, I think it is something that will work itself out in the long run is I look at it, the pharmaceutical industry more broadly, let alone our company and I look at the promise of some of these new technologies, be it cell-based therapies, be it gene therapies. I don't think I've ever in my 35-year career seen a more promising time and seen a greater opportunity for acceleration. And while yes, there are going to be risks about pricing and access in other issues, I clearly think that those are things that can be managed and, and worked with in more of an evolutionary way. And, and so again, I'm we're very optimistic about a pharmaceutical business, about a medical device business and we also believe our consumer business is very well positioned. QUICK: And is it safe to assume that if this is going to take 18 to 24 months to work out that you will stick around as Executive Chairman to oversee that process? GORKSY: Well look, as mentioned in our announcement, I plan on being here as the Executive Chair. We want to make sure there's a smooth transition. I'm incredibly proud of the selection with Joaquin. We've got a strong management team. And Becky the other thing that's really important is we are doing this from a position of strength. You know, if you look at our last quarterly results, for example, all three of our businesses are growing at or above their market rates. Our market shares are showing strong positioning, our pipelines are stronger than they've ever been. So again, we think this is the right time. We recognize again that this is a historic move. But when we think about the long-term for patients and consumers and for Johnson & Johnson and our consumer business, you know, we're confident that this this will be positive for all of our stakeholders. QUICK: Alex, we were just talking with Dr. Scott Gottlieb, the former head of the FDA about Kaiser Permanente and what he sees just in terms of patients coming back, patients who sat out for a year and half not doing some of the surgeries that they could have done because of COVID or maybe they couldn't do it because hospitals weren't doing them. He was talking about how that business is really coming back as people have morbidities that they really have to get in and address. I take it you've seen the same with the medical device business. GORSKY: Absolutely Becky. Look another, another unfortunate downside of COVID-19, not only was the patients who have been impacted by the virus itself, but about all those delayed visits to the physician, all those delays and being diagnosed for example with cancer. And we all know that the later that we're able to treat these things, it increases the potential for an even worse outcome. And so, we do think that there's significant pent-up demand. And again, I want to give a shout out to all the doctors, the nurses, the physicians, the hospital systems, the way they've been managing it. But we do anticipate that that pent-up demand will be working its way back through the system. We're seeing signs of that as we speak, particularly here in the United States, but also in Europe and other places around the world. And again, we think that represents a significant opportunity, not only as we head into 2022 but in years beyond as well. QUICK: And finally, everyone's talking about inflation right now. I'm sure that impacts just about every one of your divisions in the business but maybe consumer products is the one that people will be watching most closely, organic growth there last year of about 4%. What will inflation mean in terms of compression on the margins and how do you handle that? GORSKY: Well, look, we're watching it closely. And I'm really proud of the job that our consumer team, our supply chain has been able to do over the last 12 to 18 months and managing above and beyond inflation just consider the volatility that we saw through 2021 itself and, you know, significant swings across the different product lines. Nonetheless, we were still able to meet that demand. We're absolutely committed to making sure that we maintain an appropriate pricing structure. We're working hard with, you know, our channel partners to, to do that. But we are, we are starting to see some stresses and strains in the systems with some under, underlying supply products but we're managing that closely. And again, we're hopeful that we'll be able to maintain the strong performance, like you just mentioned, we're seeing mid-single digit growth in our consumer business, but also significant improvement in the profitability of our consumer segment as well. And, and we expect that to continue going forward. QUICK: Alex, we want to thank you for being with us on this busy morning. A huge announcement. We appreciate your time. It's really good to see you. GORSKY: Well, hey Becky, if I can just one final shout out for our employees. The 136,000 committed employees of Johnson & Johnson especially those in our consumer group. Without their hard work, their commitment, their support, this would never be possible. So, a huge thanks to all of them and, and thank you, you know, for spending this time this morning. QUICK: 136,000 employees. How many will go to the pharmaceutical and medical devices, how many will be in the consumer business afterwards? GORSKY: Slightly over 20,000— QUICK: For consumer? GORSKY: Exactly of our consumer group on a global basis. QUICK: Alex, again, thanks for being with us this morning. We will continue to look into this. We hope to hear from you again soon. Alex Gorsky is the CEO of Johnson & Johnson. GORSKY: Thank you, Becky. Updated on Nov 12, 2021, 10:10 am (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkNov 12th, 2021

Just How Big Is China"s Property Sector, And Two Key Questions On Policy And Tail Risks

Just How Big Is China's Property Sector, And Two Key Questions On Policy And Tail Risks While the broader US stock market was giddily melting up in the past week, things in China were going from bad to worse with Evergrande set to officially be in default on Oct 23 when the grace period on its first nonpayment ends, and with contagion rocking the local property market - which as we explained last week just saw the most "catastrophic" property sales numbers since the global financial crisis - sending dollar-denominated Chinese junk bonds to all time high yields. So even though it is now conventional wisdom that China's property crisis is contained (just as its concurrent energy crisis is also somehow contained), we beg to differ, and suggest that the crisis hitting the world's largest asset class is only just starting and is about to drag China into a "hard landing", with the world set to follow. And yes, with a total asset value of $62 trillion representing 62% of household wealth, the Chinese real estate sector is not only 30 times bigger than the market cap of all cryptos and also bigger than both the US bond and stock market, but is the key "asset" that backstops China's entire financial system whose deposits at last check were more than double those of the US. In other words, if China's property sector wobbles, the world is facing a guaranteed depression. So given the escalating weakness in China’s property sector, which has been in focus given intense regulatory pressure on developers’ leverage and banks’ mortgage exposure, and consequent contraction in sales and construction activity, it is natural to ask how significant a hit this could pose to both China's and the global economy. To help people get a sense of scale, below we excerpts some of the key findings from a recent note from Goldman showing just how big China's property sector is. A wide range of estimates for the scale of China’s property sector — up to about 30% of GDP — have been reported in the media and by other analysts. Different definitions of the scope of the sector largely account for the disparity. The most important distinctions are what types of building are included (residential, nonresidential, or all construction including infrastructure), what economic activity is included (only the construction itself, or all the value-added embedded in the finished residence e.g. domestically produced materials), and whether related real estate services are also included. A narrow definition of “residential construction activity as a share of GDP” could be as low as 3.6% of GDP. Expanding this to include all related domestic activities - e.g. materials like metals, wood, and stone produced domestically and used in housing construction, as well as services like financial activities and business services used directly or indirectly by the housing sector - would account for 12.4% of GDP. Adding nonresidential building construction and its associated activity would take it to 17.7%. Finally, including real estate services—which show a high correlation with broader property trends—would take the number to 23.3%. (All these numbers are based on detailed 2018 data, and exclude infrastructure spending not directly related to residential and nonresidential buildings.) The property sector’s share of the Chinese economy has grown fairly steadily over the past decade, after surging in the stimulus-fueled recovery just after the 2008 financial crisis. Digging into the definition of the “property sector”, there are three main questions that need to be kept in mind: 1. What types of construction? One important difference is in what types of construction activities are included. Construction broadly consists of three categories: residential housing, nonresidential buildings, and infrastructure-related construction. In China, residential construction appears to be about half of total construction—the rest is either non-residential building construction or civil engineering works, plus a small amount of installation/decoration activity. Specifically, residential and nonresidential buildings represent around 70% of total construction, and residential floor space under construction is typically about 70% of total floor space under construction. Note that this ~50% share for residential share of total construction is not unusual in international perspective. For example, the residential share is similar in the United States—though it reached into the 60-70% range during the peak years of the housing bubble—and has been about 40-50% in South Korea for some time. 2. What types of economic activity (only construction, or everything necessary to complete the finished building)? An even more important distinction is what types of activities one counts. Strictly speaking, the construction industry itself represents about 7% of China’s GDP. This represents wages, profits, and taxes from the construction sector (regardless of what type of construction or what end users). This is the value added of the construction sector itself, or the narrowly defined activity of building things. However, the construction industry uses a lot of output from other sectors – both materials (cement, wood, steel, etc.) and services (transportation of materials, financial services) to create finished buildings. Put another way, there are a lot of “backward linkages” from the construction sector: a home purchase requires not just the value added from construction industry, but also the value added from the “upstream” industries that provided the materials and were otherwise involved in the completion of the finished product. To gain some intuition for this, in the chart below, Goldman shows how much of each industry’s domestic value added ultimately goes into “final demand” of the construction industry (purchases of property by consumers or investment in property by businesses). For example, about one-third of value added in “wood products” goes into construction, about one-half of basic metals value added goes into construction, and essentially all of construction’s value added goes into construction final demand. (Note that this includes direct and indirect requirements—for example, basic metal output that is sold to firms in the metal fabrication industry that then sell to the construction sector would be counted as part of final demand for construction.) The next chart shows what fraction of the final demand for construction is provided by each sector. Roughly speaking, if we think about this as “the total domestic value added embedded in an apartment”, almost 30% of this is provided by construction activity, 8% from nonmetallic mineral products, etc. From the perspective of total domestic value added from all industries embedded in the final demand of the construction industry, the overall construction industry’s final demand accounts for roughly one-quarter of China’s GDP. This estimate is based on China’s most recent (2018) “input-output” table—which indicates the final output of each industry, as well as how much input is used from every other. 3. Should real estate services be included. Some analysts focus on property construction only, while others add the “real estate services” sector e.g. the leasing and maintenance of buildings when estimating the impact of the housing sector of the economy. These activities contribute roughly 6-7% of GDP in China. In many countries, real estate services are somewhat less volatile than housing construction. The likely reason is that real estate services relate in part to the stock of existing buildings than the flow of new building construction. Even if there were a housing crash and building construction stopped, most real estate services could theoretically continue.  As evidence of this, in the US housing crash, construction sector GDP fell by ~30% peak to trough but real estate services never declined. That said, in China the “real estate services” sector has been significantly more volatile, almost as volatile as the construction sector itself. Contributions by type of demand and activity Taking these three factors into consideration, Goldman next shows estimated shares of China’s activity in the next chart, and breaks down construction into its main components while showing the share attributable to real estate services. The “sector activity” column shows the share of GDP accounted for directly by activities of that sector. In other words, companies and workers engaged in all types of construction activity accounted for 7.1% of China’s GDP in 2018. The “final demand” column shows the share of GDP accounted for by all the domestic economic activities embodied in final demand for that sector. In other words, the demand for buildings and other construction also generates demand for materials and other types of services — and adding the value added in construction and all of these “upstream” sectors together gives the numbers in the right column Putting the above together, the size of China’s property sector therefore depends on the question we want to answer: What share of Chinese economic activity do workers/companies involved in residential construction represent? Here, one should look at domestic value-added (the left column). This is 7.1% for overall construction and just 3.6% for residential construction only. How much economic activity is driven by demand for residential property construction? Residential property demand drives 12.4% of GDP (right column, second row in table), because in addition to the construction activity it creates demand for all the materials and other services involved in building construction. What about the impact of total demand for property construction? Including non-residental buildings as well as residential, and the total upstream requirements of both, we want to look at the “domestic value added in final demand” of construction of residential + nonresidential buildings. This is 17.7% of GDP (12.4%+5.3%). How much of the economy is at risk from a property downturn? Here, we could potentially add end demand for real estate services to the above calculation. This would be another 5.6% of GDP, suggesting 23.3% of the economy—nearly a quarter—would be affected. Finally, if one adds all construction and all real estate and all their associated activities, we get just over 30% of the economy (24.5%+5.6%), although it is worth caveating that this may be an overly broad definition for the property sector, as it includes infrastructure-related activity, which if anything is likely to be ramped up by policymakers in the event of severe property sector weakness. * * * Yet even a nice big, round 30% estimate for how much China's property sector contributes to GDP, does not encompass all the potential spillovers from a construction sector downturn. There are at least three others: Second-round effects. A shock to construction (or any other sector) implies a drop in wages and company profits in that sector. This in turn implies lower income for the household and business sectors — and incrementally lower consumption and investment respectively. Such “second-round” or “multiplier” effects aren’t included in the estimates above. Fiscal spillovers. Land sales represent an important part of local government revenues in China (roughly 1/3 in gross revenue terms). Governments acquire land usage rights from rural occupants and sell them at a premium via auctions to developers. If land sales revenues fall because of a housing downturn (through some combination of fewer successful auctions and/or lower land prices), budgets will be squeezed, which could limit local governments’ spending and investment. Spillovers abroad via imports. As the world’s largest trading nation, China does not get all of its construction materials and other intermediate inputs domestically. In addition to the estimates above, which focus on domestic value-added, about 11% of the total value added embedded in China’s construction final demand is from foreign sources. (This is about 3% of China’s GDP, although it makes more sense to look at each trading partner’s exposure relative to the size of its own economy.) So, if we wanted to look at the total size of China’s construction sector in terms of driving economic activity, regardless of where that economic activity occurs (perhaps to compare China’s construction sector to other countries with different levels of import intensity) the figure in the top right cell in Exhibit 3 would be 3% larger. Putting it all together, and China's property sector emerges as the mother of all ticking financial time bombs. * * * Which brings us to what is Beijing's latest policy action (if any) to prevent this potential financial nuke from going off, and what are any additional tail risks to be considered. Well, as noted above, China's property sector began the week with sharp price falls across the board, with China's junk bonds cratering to near all time lows and with signs that the concerns are spilling over to the broader China credit market with spreads widening across the board. Some key updates: Recent news suggest China property stresses are building up. A number of China property HY developers have made announcements over recent weeks regarding their upcoming bond maturities. On 11 Oct, Modern Land launched a consent solicitation to extend the maturity on its USD 250mn bond due on 25 Oct by 3 months Xinyuan Real Estate announced on 14 Oct that the majority of holders of its USD 229mn bond due on 15 Oct have agreed to an exchange offer. Note that Fitch considers both transactions to be distressed exchanges. Furthermore, Sinic announced on 11 Oct that they are not expecting to make the principal and interest payments on its USD 250mn bond due on 18 Oct. These indicate that stresses amongst developers are building. Meanwhile, the grace period on Evergrande's missed coupon payments is ending soon. Evergrande missed coupon payments of USD 148MM on 11 Oct. This came after missing an earlier coupon payment on 23 Sep. The earlier missed coupon has a 30-day grace period, which ends on 23 Oct, and should that not be remedied in the coming week, the company will be in default on this bond. With Evergrande USD bonds priced at around 20, a potential default is unlikely to have large market impact, though if the company is able to remedy the earlier default, this could provide a positive surprise for the market. Despite these mounting risks, the market staged a sharp rebound at the end of the week, with news emerging that policymakers are seeking to speed up mortgage approvals (if not followed by much more aggressive easing, this step will do nothing but delay the inevitable by a few days). And while Goldman's China credit strateigst Kenneth Ho writes overnight that valuation is cheap across the lower rated segments within China property HY, market direction hinges on whether they will be able to refinance and avoid defaults. In particular, he notes that with $6.2bn of China property HY bonds maturing in Jan 2022, policy direction in the coming two months will be key. And since Goldman remains in the dark as to what Beijing will do next, as it remains "difficult to foresee how policy developments will play out in the coming weeks", Goldman prefers to wait for clearer signs of policy turn before shifting lower down the credit spectrum. * * * This brings us to what Goldman calls two key questions on China property - policy and tail risks, which will dictate the direction of the China property HY market. As discussed in depth in recent days, Beijing's tight regulatory stance is increasingly affecting a broader set of developers, as slowing activity levels are adding to worries across China property HY. For the period from early August to the first week of October, the volume of land transactions cratered by 42.5% compared with the same period last year, and for property transaction volume, this fell by 27.0%. Difficult credit conditions and weak presales add pressure to developers’ cash flows, and these factors are what led to the pick up in defaults and stresses in China property HY. Therefore, unless there are clear signs of an easing in policy direction, Goldman warns that tail risks concerns are unlikely to subside, and these will dictate the direction of China property HY market. As noted by Goldman's China economics team, credit supply holds the key to China’s housing outlook in the near term, emphasizing the need for policy adjustments in order to stabilize the housing market. Incidentally, the latest monthly Chinese credit creation numbers showed a modest miss to expectations, as total TSF flows came in at 2.928TN, just below the 3.050TN consensus, and up 10.1% Y/Y, lower than the 10.3% in August (the silver lining is that M2 rose 8.3%, up from 8.2% in August and above the 8.2% consensus). That said, given the sharp slowdown in residential property activity levels over the past two months, policy stance appears to have relaxed over the past two weeks if somewhat more slowly than most had expected. The table below summarizes a number of policy announcements and news reports that suggest some easing of policies are taking place. That said, the announcements and policymakers’ statements do not signal a large shift in overall policy direction yet. For example, the more concrete measures such as home buyer subsidies and the reduction in home loan interest rates are conducted at a city, and not national, level. And whilst Bloomberg reported that the financial regulators have informed a number of major banks to accelerate mortgage approvals, the precise details are lacking. The recent actions are therefore mostly in line with the overall policy stance. On one hand, policymakers remain focused on the medium term goal of deleveraging, and will want to avoid over-stimulating and reflating the property sector; on the other hand, policymakers have stated that they want a stable property market and to avoid systemic risks from emerging, suggesting that they would seek to avoid over-tightening. The problem is that they can't have both, and one will eventually have to crack. Goldman is somewhat more optimistic and writes that finding a balance will take time, adding that "given the need to balance the competing policy objectives, further measures could continue to emerge piecemeal, and visibility on the timing and the type of policy actions are limited." Furthermore, there may need to be further downside risk towards the property sector before we see a more decisive change in direction in the policy stance. This means that tail risks concerns are unlikely to subside, despite signs that policy direction is gradually shifting. * * * Assuming help does not come on time, the next key question is how fat is the tail as large amounts of bonds trading at stressed levels. Currently, the China property market is pricing in elevated levels of stress. Their price distribution is shown below indicating that 38% of bonds (by notional outstanding and excluding defaulted bonds) are trading at a price below 70, and 49% of bonds are below a price of 80. Are market prices overly bearish on tail risk, or are they accurately reflecting the stresses amongst property developers? With policymakers likely to maintain their medium term goal to delever the property sector, it is unlikely that tail risk concerns for higher levered developers will not subside. However, how “fat” the tail is will depend on the policy stance over the next two months. A big challenge going forward is that there are sizeable bond maturities in the next year, which will heavily influence tail risk. As noted above, a number of developers have conducted or are seeking to complete distressed buybacks, and defaults rates amongst China property HY companies are soaring. As such, the policy stance in the next two months will be critical. As shown in Exhibit 2, China property HY bond maturities are relatively light for the remainder of 2021, but pick up substantially in 2022, with USD 6.3bn of bonds maturing in January alone! A full list of bond maturities from now to February 2022, is shown below. It goes without saying, that should policy easing over the next two months be insufficient to ease the financial conditions amongst developers, there could potentially be a meaningful pick up in credit stresses at the start of 2022 just as the Fed launches its taper and just as a cold winter sends energy costs to unprecedented levels. Finally, for any investors seeking some exposure to China's HY market assuming that the worst is now over, Goldman agrees that while valuation is cheap across the lower rated segments within China property HY, the key determinant on market direction won't be valuation, but rather hinges on whether developers will be able to refinance and avoid defaults - i.e., can the Ponzi scheme continue. Tyler Durden Sat, 10/16/2021 - 18:00.....»»

Category: blogSource: zerohedgeOct 16th, 2021

3D Systems (DDD) Rides on Solid Printing Demand, Product Refreshes

3D Systems (DDD) continues gaining from growing demand for 3D printing solutions, and its sustained focus on launching innovative products and strategic acquisitions. 3D Systems DDD is benefiting from robust healthcare performance driven by strong dental and medical applications end-market. The rebound in customer activities following the pandemic-led shutdowns is a positive.Specifically, rebound in product and material demand from industrial customers is likely to drive the top line. The company’s move to sell Cimatron and GibbsCAM software businesses earlier this year aided the company to utilize its resources on more profitable additive manufacturing parts.With the 3D printing industry booming, the leading provider of 3D content-to-print solutions believes robust demand for production printers, materials and software will continue to act as a major catalyst. It recently launched VisiJet Wax Jewel Red Material, which enables jewelry manufacturers to design and produce more intricate, durable patterns — unlocking new design styles for 100% wax casting — and deliver improved production efficiency and reduced waste.Earlier in June, the company introduced a breakthrough production-grade acrylate resin, Accura AM Rigid Black, which is a tough material designed for use with stereolithography technology to produce large-scale additively manufactured parts. Such initiatives are bold and definite steps toward the company’s transition from prototyping to production. These launches are likely to reinforce 3D Systems’ additive manufacturing clients faith in its digital manufacturing solutions.The company believes that material science will be a key driver in the transition to 3D production. Hence, it has been investing significantly in materials innovation across its portfolio to capitalize on this trend. In June, it teamed up with regenerative medicine giant, CollPlant Biotechnologies, to create 3D bioprinted regenerative soft tissue matrix to simplify and improve breast reconstruction procedures involving implants.In May, it announced the acquisition of Allevi to expand its regenerative medicine initiative by accelerating growth in medical and pharmaceutical research laboratories. Further, it announced the buyout of German software firm, Additive Works GmbH, to expand simulation capabilities for rapid optimization of industrial-scale 3D printing processes. In April, it enhanced VSP surgical planning solutions portfolio by launching VSP Hybrid Guides.3D Systems continues to see steady performance in its software business and expects it to act as a significant tailwind in the days ahead. Nevertheless, printing giant HP Inc. HPQ is well-positioned to challenge 3D Systems' leadership. Stalwarts like Stratasys SSYS and voxeljet AG VJET are also likely to provide intense competition. 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 HP Inc. (HPQ): Free Stock Analysis Report Stratasys, Ltd. (SSYS): Free Stock Analysis Report 3D Systems Corporation (DDD): Free Stock Analysis Report voxeljet AG (VJET): Free Stock Analysis Report To read this article on click here. Zacks Investment Research.....»»

Category: topSource: zacksOct 15th, 2021

DOB launches Hack the Building Code challenge

The Department of Buildings today announced the launch of the agency’s second-annual “Hack the Building Code” Innovation Challenge, sending out an open call to the public for ways to improve New York’s built environment. The contest is a partnership between the DOB, the NYC Economic Development Corporation and Urban Tech... The post DOB launches Hack the Building Code challenge appeared first on Real Estate Weekly. The Department of Buildings today announced the launch of the agency’s second-annual “Hack the Building Code” Innovation Challenge, sending out an open call to the public for ways to improve New York’s built environment. The contest is a partnership between the DOB, the NYC Economic Development Corporation and Urban Tech Hub @ Company Ventures. Building on the success of our first ever “Hack the Building Code” innovation challenge held last year, DOB is once again seeking ideas on the best ways to improve how we design, construct and maintain our city of over 1.1 million buildings. Submissions for the challenge can incorporate a wide range of ideas, including new technologies, resiliency standards, building sustainability, construction site safety, public safety, public quality of life issues, removing inefficiencies in the development process, and modernizing construction techniques. The winners of this innovation challenge will receive DOB technical support and assistance in introducing their technology to NYC’s design and construction industries. In addition, winners will be featured in upcoming DOB industry seminars and events highlighting how NYC’s Building Code keeps New Yorkers safe. Submit your entries online here by November 3, 2021. COMMISSIONER MELANIE LA ROCCA “Time and time again we have seen that the best ideas can come from anywhere. That’s why we’re challenging New Yorkers to share their proposals for how we can make New York a safer and more sustainable city,” said Buildings Commissioner Melanie E. La Rocca. “We want to leverage the creativity of the city’s design and construction industries to keep us at the forefront of innovation, protect the public and help New York continue to lead the fight against climate change.” “The Urban Tech Hub @ Company Ventures is proud to continue to partner with the Department of Buildings to surface innovative ideas to modernize construction techniques and sustainable practices and to create more resilient spaces in the wake of COVID,” said Robinson Hernandez, Executive Director of Urban Tech Hub @ Company Ventures. “We’re calling on New York City’s tech and real estate communities, as well as the general public, to help us update and modernize the city’s Building Code so that it better serves everyone.” The “Hack the Building Code” Innovation Challenge is seeking proposals in categories including, but not limited to: Construction PracticesCreating innovative design and construction techniquesImproving construction process efficiency and safely reducing costSustainability & ResiliencyEnhancing resiliency of buildings and systemsImproving building energy and emissions performanceInnovative new materials or practices that improve sustainabilityRenewable energy systemsReducing “embodied carbon” that is stored or emitted during constructionImproving Conditions for Tenants, Occupants, & the PublicBest practices for complying with tenant protection regulationsInnovative technology that coordinates and minimizes disruption of services in occupied buildings, including heat, hot water, and elevators;Minimizing the impact of construction and building maintenance on tenants in residential buildings, including but not limited to reducing noise, dust, vibrations, and other detriments to tenants’ quality of life, as well as other innovative ideas to maintain safe and code-compliant egress from buildings during constructionMinimizing the effects of construction on other building occupants, the public, and neighboring properties, including but not limited to the factors set forth aboveNew Design Standards & PracticesIdentifying regulations that should be phased out or modernizedInnovative façade inspections and repairsIncorporating new technology and data into building designImproving building safety and structural performanceImproving fire safetyWorker & Construction Site SafetyInnovative construction techniques that improve safetyNew technology that improves fall protectionIdentifying methods of construction that limit/reduce impact to the public right-of-way and pedestriansBest practices and innovations for protecting adjoining properties during construction Judging for this competition will be led by DOB’s Code Innovation Committee, comprised of DOB staff and representatives from the construction, design and real estate industries. Finalists will be selected after review by the Committee and will present their proposals at a virtual DOB conference to be held in November. New York City’s Building Code is one of the nation’s earliest and most comprehensive set of rules regarding construction in both new and existing buildings. Updated regularly, our Codes set a strong framework for how buildings are designed and maintained in our unique urban environment. Earlier this year, the Department announced sweeping revisions to existing Codes, with more than 600 major changes to existing regulations, which we look forward to the City Council passing them into law. Regulations in our Codes frequently inform model codes on the national and international levels. The second-annual “Hack the Building Code” Innovation Challenge is part of DOB’s ongoing commitment to create a safe, sustainable city. Last year, winning proposals to improve building and worker safety and increase energy efficiency among NYC’s buildings included a wide range of measures to improve our city’s built environment. In addition to showcasing the 2020 winners at digital industry conferences, the agency also issued Buildings Bulletins in support of these innovators, official guidance documents which provide technical approvals in New York City for the use of products, processes and technologies that are not specifically enumerated in our Codes. Urban Tech Hub is home to 50+ startups working on the future of smarter cities alongside corporate partners and NYC government agencies, helping the city to capitalize on innovations that address the most pressing urban challenges. “It is critical to the well-being of our communities to promote the modernization of the built environment in New York,” said John Evers, President & CEO, American Council of Engineering Companies of New York. “Our organization will continue to partner with the DOB and Commissioner La Rocca on initiatives such as the ‘Hack the Building Code’ challenge, which promotes greatly needed innovation and resiliency efforts.” “Innovation is an essential part of the real estate industry’s efforts to advance sustainable development, promote construction safety and maintain state-of-the-art buildings for residential and commercial tenants,” said Zachary Steinberg, Senior Vice President of Policy at the Real Estate Board of New York (REBNY). “We applaud DOB for leading this exciting initiative and look forward to the proposals it will generate as we continue working together to modernize our built environment and strengthen communities across New York City.” “The BTEA is proud to once again participate in the Department’s “Hack The Building Code” innovation challenge. It is exactly these collaborative efforts that help to move both the Industry and the Department forward. We look forward to hearing and seeing more fantastic and innovative concepts,” said Donald Ranshte, Building Trades Employers Association, Executive Vice President. The post DOB launches Hack the Building Code challenge appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyOct 4th, 2021

Valeo Pharma Announces Record Revenues and Gross Margins for its Third Quarter 2021

Record revenues of $5.7 million for Q3 2021, up 280% over Q3 2020 and 114% over prior quarter. Record gross margin of $2.2 million, up 1602% over Q3 2020 and 204% over prior quarter. Record 9 months revenues at $10.2 million, up 94%. Private and public reimbursement coverage expanding for Redesca® New corporate structure completed with full commercial activities ongoing for Redesca®, Enerzair® Breezhaler® and Atectura® Breezhaler® Valeo launches new corporate image, logo and website MONTREAL, Sept. 22, 2021 /CNW Telbec/ - Valeo Pharma Inc. (CSE:VPH) (OTCQB:VPHIF) (FSE: VP2) ("Valeo" or the "Company"), a Canadian pharmaceutical company, today reported its financial results for the third quarter ended July 31, 2021. Third quarter and year to date 2021 Results Highlights: Record revenues of $5.7 million compared to $1.5 million in Q3 2020, up 280% Record gross margin of $2.2 million compared to $0.1 in Q3 2020, up 1602% Net loss of $2.9 million compared to $1.6 in Q3 2020 Adjusted EBITDA loss of $0.8 million compared to $0.7 million in Q3 2020 Record YTD revenues after 9 months of $10.2 million, up 94% over the first 9 months of 2020. "The Q3 commercial launches of Redesca, Enerzair and Atectura, three products that are transformative for Valeo, contributed to our record third quarter results. Valeo is rapidly evolving into a leading Canadian pharmaceutical company with strong management and an extensive commercial infrastructure. Our innovative products and pipeline point to robust revenue growth for the coming years," said Steve Saviuk, CEO. "Redesca has rapidly become our best selling product while intial healthcare professional interest in Enerzair and Atectura, our two newly launched asthma therapies, has been very strong and supports our view that these therapies will be important revenue drivers." "We will look back at the third quarter of 2021 and the implementation of our new corporate structure as a pivotal moment for Valeo. Valeo's two business units are now fully staffed with a dedicated national sales force supported by head office functions, powerful data management and communication technological tools. Both units are now led  by industry veterans that will drive maximum market share gains," said Frederic Fasano, President and COO. "We are very pleased to have successfully met the challenge of assembling a solid team in 2021. We are already seeing the benefits of our new structure and look forward to leverage its commercial potential." Commenting on the record third quarter 2021 results, Luc Mainville, Senior Vice-President and Chief Financial Officer said, "We have continued to build on the momentum of previous quarters and once again delivered record revenues and margins during the quarter. In addition to significantly improving our product mix and contributing margins from product sales, our quarter has been impacted by a few material ...Full story available on»»

Category: earningsSource: benzingaSep 22nd, 2021

Boston Scientific (BSX) Strategic Buyouts Aid Amid Cost Woes

Boston Scientific (BSX) is optimistic about its recent deal to acquire Israel-based Lumenis that develops and commercializes energy-based medical solutions. Boston Scientific Corporation’s BSX recent acquisitions have added various products with immense potential to its portfolio. However, unfavorable currency movement and product recall were major dampeners. The stock carries a Zacks Rank #3 (Hold).Over the past six months, Boston Scientific has outperformed the industry it belongs to. The stock has risen 14.2% compared with the industry’s 0.1% rise. Boston Scientific ended the second quarter on an extremely bullish note with adjusted earnings and revenues both surpassing the respective Zacks Consensus Estimate as well as the company’s expectations by a wide margin. The company also registered strong sequential and year-over-year improvement in overall financial performance. Organic sales grew 52% year over year and 9% compared with the 2019 comparable period.Recovery from the pandemic occurred more quickly than expected, particularly in the United States. Importantly, six out of the company’s seven businesses grew in double digits organically versus 2019. Five of the business units grew faster than their respective markets. Ongoing new product launches contributed to the top line significantly. The company is now enrolling clinical trials at pre-COVID run rates. The raised full-year 2021 guidance with organic revenue growth expectation of 19% to 20% over 2020 indicates that this momentum is likely to continue through the rest of the year.Boston Scientific Corporation Price Boston Scientific Corporation price | Boston Scientific Corporation QuoteWe are impressed with Boston Scientific’s several recent acquisitions that have added numerous products (though many are under development) with immense potential. This, in turn, should help boost the top line in the long term. The company is optimistic about its recent deal to acquire Israel-based Lumenis that develops and commercializes energy-based medical solutions. The acquisition, which is expected to close in the second half of 2021, should further expand Boston Scientific’s Urology portfolio with its differentiated laser technology.Apart from this, the recently-closed acquisition of Preventice Solutions (which offers new-generation detection algorithms, a broad portfolio with BodyGuardian MINI, and establishes a strong position for Boston Scientific in the field of cardiac diagnostics) contributed 240 basis points to the company’s revenue growth in the second quarter. Within Electrophysiology, the impending Farapulse acquisition (expected to complete in the third quarter) should help the company to strengthen its position in the emerging space of pulsed field ablation.Further, the company has made a number of strategic acquisitions of late including BTG, Millipede (within Structural Heart) Claret Medical, VENITI, and Augmenix. These acquisitions all target high-growth markets, enhance the company’s category leadership strategy, leverage existing global capabilities, and further enhance its short-term and long-term growth profile.On the flip side, escalating costs are putting pressure on the bottom line. In the second quarter, there was a 19.5% rise in the cost of products sold. Selling, general and administrative expenses rose 40.4% while research and development expenses increased 23.1%.Unfavorable currency movement and continuous legal problems are other major dampeners Strong competitors in the large medical device market also pose a tough challenge for Boston Scientific.Stocks to ConsiderA few better-ranked stocks from the Medical-Products industry are Envista Holdings Corporation NVST, VAREX IMAGING VREX, and BellRing Brands, Inc. BRBR.Envista Holdings, which carries a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.VAREX, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 5%.BellRing Brands, sporting a Zacks Rank #2, has a long-term earnings growth rate of 29.1%. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report VAREX IMAGING (VREX): Free Stock Analysis Report Envista Holdings Corporation (NVST): Free Stock Analysis Report BellRing Brands, Inc. (BRBR): Free Stock Analysis Report To read this article on click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

Shellenberger: The Real Threat To Banks Isn"t From Climate Change, It"s From Bankers

Shellenberger: The Real Threat To Banks Isn't From Climate Change, It's From Bankers Authored by Michael Shellenberger via substack, Over the last two years, some of the world’s most powerful and influential bankers and investors have argued that climate change poses a grave threat to financial markets and that nations must switch urgently from using fossil fuels to using renewables. In 2019, the Federal Reserve Bank of San Francisco warned that climate change could cause banks to stop lending, towns to lose tax revenue, and home values to decline. Last year, 36 pension fund managers representing $1 trillion in assets said climate change “poses a systemic threat to financial markets and the real economy.” And upon taking office, President Joe Biden warned government agencies that climate change disasters threatened retirement funds, home prices, and the very stability of the financial system. But a major new staff report from the New York Federal Reserve Bank throws cold water on the over-heated rhetoric coming from activist investors, bankers, and politicians. “How Bad Are Weather Disasters for Banks?” asks the title of the report by three economists. “Not very,” they answer in the first sentence of the abstract. The reason is because “weather disasters over the last quarter century had insignificant or small effects on U.S. banks’ performance.” The study looked at FEMA-level disasters between 1995 and 2018, at county-level property damage estimates, and the impact on banking revenue. The New York Fed’s authors only looked at how banks have dealt with disasters in the past, and what they wrote isn’t likely to be the final word on the matter. The United Nations Intergovernmental Panel on Climate Change and most other scientific bodies predict that many weather events, including hurricanes and floods, which cause the greatest financial damage, are likely to become more extreme in the future, due to climate change. And in February, The New York Times quoted one of six United States Federal Reserve governors saying, “Financial institutions that do not put in place frameworks to measure, monitor and manage climate-related risks could face outsized losses on climate-sensitive assets caused by environmental shifts.” But the Fed economists looked separately at the most extreme 10 percent of all disasters and found that banks impacted not only didn’t suffer, “their income increases significantly with exposure,” and that the improved financial performance of banks hit by disasters wasn’t explained by increased federal disaster (FEMA) aid. In other words, disasters are actually good for banks, since they increase demand for loans. The larger a bank’s exposure to natural disasters, the larger its profits. Happily, the profits made by banks are trivial compared to rising societal resilience to disasters, which can be seen by the fact that the share of GDP spent on natural disasters has actually declined over the last 30 years. While scientists expect hurricanes to become five percent more extreme they also expect them to become 25 percent less frequent, and now, new data show global carbon emissions actually declined over the last decade, and thus there is no longer any serious risk of a significant rise in global temperatures. Banking Against Growth The real risk to banks and the global economy comes from climate policy, not climate change, particularly efforts to make energy more expensive and less reliable through the greater use of renewables, new taxes, and new regulations. “For policymakers,” warned the three economists writing for the New York Fed, “our findings suggest that potential transition risks from climate change warrant more attention than physical disaster risks.” While they may seem like outliers, they are far from alone in expressing their concern. The second half of the quote by the Fed governor about climate change, which was hyped by The New York Times, warned that banks “could face outsized losses” from the “transition to a low-carbon economy.” (My emphasis.) And, now concern is growing among members of Congress about the dangers of over-relying on weather-dependent energy, with some members citing the New York Fed’s report after The Wall Street Journal editorialized about it last week . Proof of the threat to the economy from climate policy is the worst global energy crisis in 50 years. Shareholder activists played a significant role in creating it, according to analysts at Goldman Sachs, Bloomberg, and The Financial Times, by reducing investment in oil and gas production, and causing nations to over-invest in unreliable solar and wind energies, which has driven up energy prices, and contributed significantly to inflation. And yet a crucial Biden Administration nominee for bank regulation has openly said she would like to bankrupt firms that produce oil and gas, the two fuels whose scarcity is causing the global energy crisis. Progressive academic, Saule Omarova, nominated by Biden, said recently that “we want [oil and gas firms] to go bankrupt” and that “the way we basically get rid of these carbon financiers is we starve them of their source of capital. Biden nominee Saule Omarova said she wants to bankrupt energy companies Omarova is not an outlier. The Biden Administration’s Financial Stability Oversight Council (FSOC) is advocating 30 new climate regulations that should be imposed on banking. Many analysts believe the US Securities and Exchange Commission will require new regulations. The goal is to radically alter how America’s banks lend money, the energy sector, and the economy as a whole. And former Bank of England chief, Mark Carney, co-chair of the Glasgow Financial Alliance for Net Zero, has organized $130 trillion in investment and said recently that his investors should expect to make higher, not lower, returns than the market. How? In the exact same way Omarova predicted: by bankrupting some companies, and financing other ones, through government regulations and subsidies. Former Bank of England head Mark Carney Carney created the Glasgow Financial Alliance, or GFANZ, with Michael Bloomberg, and they did so under the official seal of the United Nations. “Carney said the alliance will put global finance on a trajectory that ultimately leaves high-carbon assets facing a much bleaker future,” wrote a reporter with Bloomberg. “He also said investors in such products will see the value of their holdings sink.” What’s going on, exactly? How is it that some of the world’s most powerful bankers, and the politicians they finance, came to support policies that threaten the stability of electrical grids, energy supplies, and thus the global economy itself? The Unseen Order Three of the largest donors to climate change causes are billionaire financial titans Michael Bloomberg, George Soros, and Tom Steyer, all of whom have significant investments in both renewables and fossil fuels. Tom Steyer, Michael Bloomberg, and George Soros Soros is worth $8 billion and recently made large investments in natural gas firms (EQT) and electric vehicles (Fisker), Bloomberg has a net worth of around $70 billion and has large investments in natural gas and renewables, and much of Steyer’s wealth derives from investments in all three main fossil fuels—coal, oil, and natural gas — as well as renewables. All three men finance climate activists and politicians, including President Biden, who then seek policies — from $500 billion for renewables and electric vehicles over the next decade to federal control over state energy systems to banking regulations to bankrupt oil and gas companies — which would benefit each of them personally. Bloomberg gave over $100 million to Sierra Club to lobby to shut down coal plants after he had taken a large stake in its replacement, natural gas, and operates one of the largest news media companies in the world, which publishes articles and sends emails nearly every day reporting that climate change threatens the economy, and that solar panels and wind turbines are the only cost-effective solution. Soros donates heavily to Center for American Progress, whose founder, John Podesta, was chief of staff to Bill Clinton, campaign chairman for Hillary Clinton’s presidential campaign, and who currently runs policy at the Biden White House. So too does Steyer, who funds the climate activist organization founded by New Yorker author Bill McKibben,, which reported revenues of nearly $20 million in 2018. The most influential environmental organization among Democrats and the Biden Administration is the Natural Resources Defense Council, NRDC, which advocated for federal control of state energy markets, the $500 billion for electric cars and renewables, and international carbon markets that would be controlled by the bankers and financiers who also donate to it. In the 1990s, NRDC helped energy trading company Enron to distribute hundreds of thousands of dollars to environmental groups. “On environmental stewardship, our experience is that you can trust Enron,” said NRDC’s Ralph Cavanagh in 1997, even though Enron executives at the time were defrauding investors of billions of dollars in an epic criminal conspiracy, which in 2001 bankrupted the company. From 2009 to 2011, NRDC advocated for and helped write complex cap-and-trade climate legislation that would have created and allowed some of their donors to take advantage of a carbon-trading market worth upwards of $1 trillion. NRDC created and invested $66 million of its own money in a BlackRock stock fund that invested heavily in natural gas companies, and in 2014 disclosed that it had millions invested in renewable funds. Former NRDC head, Gina McCarthey, now heads up Biden’s climate policy team, and Biden’s top economic advisor, Brian Deese, last worked at BlackRock, and almost certainly will return at the end of the Biden Administration. Money buys influence. In 2019, McKibben called Steyer a “climate champ” when Steyer announced he was running for president, adding that Steyer’s “just-released climate policy is damned good!” And in 2020, McKibben wrote an article called, “How Banks Could Bail Us Out of the Climate Crisis,” for The New Yorker, which repeated the claim that extreme weather created by climate change threatens financial interests, and that the way to prevent it is to divert public and private money away from reliable energy sources toward weather-dependent ones. Forms filed to the Internal Revenue Service by Steyer’s philanthropic organization, the TomKat Charitable Trust, show that it gave McKibben’s climate activist group,, $250,000 in 2012, 2014, and 2015, and may have given money to in 2013, 2016, 2017, 2018, 2019, and 2020, as well, because thanked either Steyer’s philanthropy, TomKat Foundation, or his organization, NextGen America, in each of its annual reports since 2013. At the same time, McKibben’s motivations are plainly spiritual. He claims that various natural disasters are caused by humans, that climate change literally threatens life on Earth, and is thus “greatest challenge humans have ever faced,” a statement so unhinged from reality, considering declining deaths from disasters, declining carbon emissions, and the total absence of any science for such a claim, that it must be considered religious. McKibben first book about climate change, The End of Nature, explicitly expressed his spiritual views, arguing that, through capitalist industrialization, humankind had lost its connection to nature. “We can no longer imagine that we are part of something larger than ourselves,” he wrote in The End of Nature. “That is what this all boils down to.” Indeed, for William James, the belief in “an unseen order” that we must adjust ourselves to, in order to avoid future punishment, is a defining feature of religion. Climate change is punishment for our sins against nature — that’s the basic narrative pushed by journalists, climate activists, and their banker sponsors, for 30 years. It has a supernatural element: the belief that natural disasters are getting worse, killing millions, and threatening the economy, when in reality they are getting better, killing fewer, and costing less. And it offers redemption: to avoid punishment we must align our behavior with the unseen order, namely, a new economy controlled by the U.N., bankers, and climate activists. Unfortunately, as is increasingly obvious, the unseen order is parasitical and destructive. When Nuclear Leads, the Bankers Will Follow The unseen order of bankers, climate activists, and the news media is so powerful that it is difficult to imagine how it could ever be challenged. The financial might of the climate lobby covers the wealth not only of billionaires Soros, Steyer, and Bloomberg, but also $130 trillion in investment funds, including many of the world’s largest pension funds, such as the one belonging to California public employees. The climate lobby’s political power is equally awesome, covering the entirety of the Democratic Party and a significant portion of the Republican Party, and most center-Left parties in Europe. Former German Chancellor Angela Merkel, French President Emanuel Macron, and U.S. Energy Secretary Jennifer Granholm And all of that is sustained by cultural power, which has led many elites to view climate change as the world’s number one issue, has convinced half of all humans that climate change will make our species extinct, and has served as the apocalyptic foundation for Woke religion. But serious cracks in the foundation are growing. The global energy crisis has revealed for many around the world the limits of unreliable renewables, with European governments having to subsidize energy to avoid public backlash, President Biden and other heads of state opening up emergency petroleum reserves, and all nations begging OPEC to produce more energy. The blackouts and rising unreliability of electricity in California, along with the work of the pro-nuclear movement over the last 6 years, has resulted in a growing number of Democrats supporting nuclear energy. Energy Secretary Jennifer Granholm last week publicly urged California Governor Gavin Newsom not to close California’s Diablo Canyon nuclear plant, the signature nuclear plant Environmental Progress has been trying to save since 2016. Democratic support in particular for nuclear is growing. And alternative media including Substack, podcasts, and social media platforms are increasingly providing a counterweight to the mainstream news media, exposing a huge number of issues that the media got wrong in recent years, and amplifying alternative voices. Nowhere is the change occurring faster than in Europe, where energy shortages are affecting heating, cooking, and electricity supplies in ways that undermine the legitimacy of the banker-led climate efforts. In Britain, private energy companies have gone bankrupt, forcing the government to bail them out. For-profit energy companies, like banks, ultimately depend on taxpayers, who are also voters. Outgoing German Chancellor Angela Merkel, who led her nation’s exit from nuclear energy, acknowledged that Germany had been defeated in its anti-nuclear energy advocacy at the European Union level, and that nuclear would finally be recognized as low-carbon. And French president Emanuel Macron, under pressure from the political right as voters look to elections next year, gave a passionate speech in favor of nuclear energy last month, announcing $35 billion for new reactors. As the world returns to nuclear, policymakers, media elites, and climate advocates will be increasingly confronted with the question of why consumers and taxpayers will benefit from a global carbon trading scheme and more weather-dependent renewables, particularly at a time of declining global emissions from the continuing transition from coal to natural gas, reduced deforestation, and increased reforestation. Simply building more nuclear power plants means there is no climate change justification for weather-dependent renewables, which actually require greater use of natural gas, in order to deal with the high amount of unreliability. Nuclear power goes with slow and patient capital. The obvious funders of a nuclear expansion in the West would be the pension funds, which need the secure return on investment that major construction and infrastructure projects provide, and which unreliable renewables, as the energy crisis shows, do not. And though the news media is currently ignoring the New York Fed’s report, reporters will not be able to continue spreading misinformation about climate change indefinitely. Increasingly, they, and thus policymakers and the public, will be forced to confront facts inconvenient to their narrative, including that humans are adapting remarkably well to climate change, that renewables make energy unreliable and expensive, and that only nuclear can achieve sustainability goals of reduced emissions, material throughput, and land use. As people ask, “How Bad Are Weather Disasters?”, not just for banks, but for all of us, the answer will increasingly come back, “Not very.” *  *  * Michael Shellenberger is a Time Magazine "Hero of the Environment,"Green Book Award winner, and the founder and president of Environmental Progress. He is author of just launched book San Fransicko (Harper Collins) and the best-selling book, Apocalypse Never (Harper Collins June 30, 2020). Subscribe To Michael's substack here Donate to Environmental Progress Tyler Durden Sat, 12/04/2021 - 21:30.....»»

Category: blogSource: zerohedge11 hr. 19 min. ago

Sellers of American-made goods are thriving amid supply-chain chaos — but they can"t escape labor and cost pressures

Four US manufacturers based in four different states told Insider about the upsides — and challenges — of making their products close to home. American Giant makes a range of cotton products, including hoodies, sweatpants, and t-shirts, at factories in the South and Midwest.American Giant American manufacturers are thriving as global supply chains remain in turmoil.  They're not immune to other economic issues, like the labor crunch and rising shipping costs. But "the closer you are to your customer ... the fewer things that can go wrong," Alliance for American Manufacturing President Scott Paul told Insider. Unlike many retailers this holiday season, Bayard Winthrop isn't concerned about global supply chain snags.That's because Winthrop, the CEO of apparel retailer American Giant, is close to nearly every aspect of his company's supply chain: The cotton is grown in the US; it's spun into fabric and made into hoodies and sweatpants in factories throughout the Southeast and Midwest; then it's delivered, mostly by UPS, to customers across the country.That means nothing is stuck on a container ship or needs to be air-freighted to the US to arrive in time for the holidays. "We expect to be fully in stock in the holidays," Winthrop told Insider. "We don't spend any time talking about supply chain stuff internally." Winthrop is one of four manufacturing CEOs who spoke with Insider about what it's like to make products in the US during a time when global supply chains are in a state of upheaval.None of them is immune to challenges facing the US economy in 2021. Some are having trouble hiring while others are raising prices as raw material costs soar. But they also described the benefits of manufacturing close to home — mainly, more control over their supply chains and greater flexibility when problems arise.When the coronavirus began spreading worldwide last year, it shut down ports and took factories offline while simultaneously sparking a rush on consumer goods. In the US, where the labor market is tight, there are also fewer people to process all the goods coming into the country from overseas, leading to a backlog at the nation's ports.And so, in the intervening months, there's been a greater push to manufacture more goods in the US."There's not a guarantee that if you produce in the United States or North America, that you will be immune to any of this," Scott Paul, president of the Alliance for American Manufacturing, an industry group that partners with both manufacturers and unions, told Insider. "But there is a better chance that you will be less impacted."The labor crunch was very real — even with the promise of higher paySherrill Manufacturing produces its Liberty Tabletop line in Central New York.Sherrill ManufacturingThis mindset is on display at Sherrill Manufacturing in Central New York, which produces Liberty Tabletop, a line of flatware and cookware. Sherrill Manufacturing's supply chain is "about as vertically integrated as you could possibly imagine," Greg Owens, the company's CEO, told Insider. The company's products start as a coil or bar of steel that's made in one of three places: Western New York, Pittsburgh, or Tennessee. That steel is then turned into forks or knives at the company's manufacturing facility in Sherrill, New York, and boxed up using locally sourced packaging.Owens said that sales of Sherrill's flatware doubled in 2020 as more people ate at home and rose another 50% year-over-year in 2021. The biggest problem the company faces now is keeping products in stock. But there are other challenges, too: Owens estimates that steel prices have doubled since before the pandemic, and he said finding workers to fill open positions is harder than usual. The company has raised wages to attract and retain workers, but filling the 25 positions it added to boost production took a long time, he said. "We went a year advertising with our payroll company on their program, which puts job postings on 10, 15 different sites," he said. "Didn't get one application."'Biting the bullet' as costs riseVermont Flannel Company sews its clothing in the US.Vermont Flannel CompanyFinding workers has been a challenge for Vermont Flannel Company President Mark Baker too. The 30-year-old company manufactures its flannel shirts, pajamas, and blankets in the Green Mountain State and Baker said the biggest challenge the company has faced, besides the initial shut-downs in early 2020, is filling vacant positions. "We lost some people that either moved or decided they had other options," Baker told Insider. "It's really hard to find people to get into manufacturing nowadays." Vermont Flannel Company differs from American Giant or Sherrill Manufacturing in that it imports its raw materials. The company contracts with a mill in Europe that produces the fabric and ships it to the US, but Baker said Vermont Flannel hasn't hit many snags, despite the supply-chain crisis. The company purchases its fabrics almost a year in advance, and they're shipped to the Port of Boston, which isn't as large — or quite as constricted — as ports like Los Angeles.Baker said he's even more concerned about rising costs. The fabric is more expensive now, and the cost of shipping it to the US has skyrocketed. He's also worried about getting flannels shipped out to US customers ahead of the holidays because carriers like the United States Postal Service are raising prices and may face issues that delay shipments like last year. "I think it's going to be a little bit of a biting the bullet in the next six months," he said, adding that the company may have to raise costs if the issues persist.Soaring shipping prices amid soaring salesArrow + Phoenix's swimwear and activewear is manufactured in Nevada.Arrow + PhoenixKayla Bell is also familiar with the challenges of importing raw materials during a time of global upheaval.As the CEO of swimwear and activewear brand Arrow + Phoenix, which is manufactured in Henderson, Nevada, Bell had to scramble when shipments of her Italian-made fabric were disrupted in 2020 as the country grappled with devastating waves of the coronavirus.Arrow + Phoenix was simultaneously seeing demand for its suits soar, which Bell attributes, in part, to a societal focus on spending with Black-owned brands amid protests following the killings of George Floyd and Breonna Taylor. Customers were placing $1,000 worth of orders per day, so Bell found a US textile company that produced the same type of fabric as a substitute. Now Bell says she's facing a new logistical nightmare: shipping the finished products. The brand's domestic shipping costs have increased by about $2.50 more per package with USPS, she said, and its international shipping costs have also soared. As a result, Arrow + Phoenix raised its prices by a few dollars per item, scaled back on the number of styles and colors it sells, and offered preorders for certain items. "Before COVID, it was like 40 bucks for us to ship a swimsuit, or any package, over to Italy. Now it's $200," Bell told Insider. Bell's challenges, and those of the other companies, prove the complex nature of retail in 2021: No company, no matter how it makes its products or where, is isolated from the pressures of the global economy, or the undulations of supply and demand. Paul, the AFAM president, said these challenges are leading more companies to reconsider their supply chains, diversify their suppliers, make their manufacturing processes more flexible, and source products within the US. "I don't know anybody who's suggesting that we have autarky, that we just shut our country down and we're going to be self-sufficient," Paul said. "Just, the closer you are to your customer, the closer you are to your main assembly, the fewer things that can go wrong." Read the original article on Business Insider.....»»

Category: topSource: businessinsider17 hr. 35 min. ago

Abbott (ABT) Nutrition Sales Strong Amid Spike in COVID Cases

Abbott (ABT) is registering strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. Abbott Laboratories ABT has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. However, the soft neuromodulation business is a challenge. The stock currently carries a Zacks Rank #3 (Hold).Over the past year, Abbott has been outperforming the industry it belongs to. The stock has gained 17.2% against the industry’s 6.9% fall.The company posted better-than-expected earnings and revenue numbers for the third quarter of 2021. Overall, year-over-year improvements were robust. Excluding COVID-19 testing-related sales, which totaled $1.9 billion in the quarter, organic sales increased 12% year over year. Even though COVID-19 case rates surged in the United States and other geographies during the third quarter, the company registered strong growth in its more consumer-facing businesses like nutrition, established pharmaceuticals and diabetes care. This mitigated the modest impacts of the pandemic that Abbott witnessed from the surge in cases in certain areas of its hospital base businesses.Abbott Laboratories Price Abbott Laboratories price | Abbott Laboratories QuoteIn the third quarter, within Nutrition, strong growth was led by U.S. pediatric and international adult nutrition. In Pediatric Nutrition, the company registered strong growth in the United States from continued share gains in infant formula and toddler portfolio. Sales of Pedialyte, the company’s market-leading rehydration brand, once again grew in strong double digits, driven by the solid market uptake of several recently launched new products as well as investments in direct consumer promotion. In Adult Nutrition, there was mid-teens growth internationally on strong demand for Ensure and Glucerna brands, including new users entering these categories and existing customers increasing their usage.Within Diagnostics, sales increased over 45%, led by growing demand for Abbott’s portfolio of COVID-19 tests as well as improvement in the base business. During the quarter, as the Delta variant spread and COVID cases surged, particularly in the United States, demand for testing, especially the rapid tests increased significantly. Within EPD, third-quarter sales grew over 15% year over year led by double-digit growth in China, Russia and India, which led to overall sales growth of 18% in key emerging markets.Abbott has a consistent record of paying dividends with five-year annualized dividend growth being 12.72%.On the flip side, with a spike in new COVID-19 case counts through the third quarter, Abbott noted modest impacts in its base business. More specifically, some softness was seen as the Delta variant spread and new cases increased in the United States, particularly more in August and throughout September. This led to a slowdown in the company’s hospital base business in certain areas.Further, Abbott’s Neuromodulation arm reported an 8.3% year-over-year decline on an organic basis in the third quarter. Abbott noted that being extremely elective in nature, this business is having a hard time in terms of post-COVID recovery. The company currently is not much hopeful about a rebound in the fourth quarter within this business.Added to this, foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of euro and some other developed market currencies has been constantly hampering the company’s performance in the international markets.Key PicksSome better-ranked stocks from the broader medical space are Chemed Corporation CHE, Varex Imaging Corporation VREX and Laboratory Corporation of America Holdings, or LabCorp LH.Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings per share (EPS) estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average. Chemed currently carries a Zacks Rank #2 (Buy).Chemed has outperformed its industry over the past year. CHE has gained 3.7% against the industry’s 35.6% decline.Varex has a long-term earnings growth rate of 5%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 115.3%.Varex has outperformed the industry it belongs to in the past year. VREX has gained 75.6% versus the industry’s 5% fall. Varex currently carries a Zacks Rank #2.LabCorp reported third-quarter 2021 adjusted EPS of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. LabCorp currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%. 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 Abbott Laboratories (ABT): Free Stock Analysis Report Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report Chemed Corporation (CHE): Free Stock Analysis Report VAREX IMAGING (VREX): Free Stock Analysis Report To read this article on click here......»»

Category: topSource: zacksDec 3rd, 2021

Abandoned shipping containers at ports can hold mystery prizes for opportunistic buyers, just like "Storage Wars"

One buyer compared it to "Storage Wars," telling Bloomberg he'd unearthed anything from electric scooters to breast implants and pumpkin seeds. Associated Press Supply-chain snarls have led to an uptick in abandoned shipping containers in ports. Shippers must decide how to get rid of the cargo without losing too much money. Abandoned cargo represent an opportunity for cargo salvage buyers who collect the mystery goods. Supply-chain snarls have caused a surplus of abandoned shipping containers — and created an opportunity for new buyers to cash in on its contents. Abandoned cargo can be publicly auctioned off or sold directly to cargo salvage buyers. For these buyers, it's a mystery prize. The director of JS Cargo & Freight Disposal, Jake Slinn, told Bloomberg it's a guessing game. A buyer is presented with a manifest, but they often don't truly know what's inside until they crack open the container. As a part of a two-man business based out of the UK, Slinn told the publication he's taken containers full of anything from aluminum take-out pans to electric scooters, breast implants, pumpkin seeds or six tons of cheese."It's like 'Storage Wars,'" Slinn told Bloomberg, referencing the American reality-TV show. "You crack the doors open and it's something completely different than we were expecting. So it's a challenge. You're thinking, 'Right, where can I send this? What can I do with this?'"On his latest container reveal, the manifest simply said: "Household goods." What he found was a sedan stuffed with clothes and kitchen ware. Depending on the container's contents, cargo-salvage buyers like Slinn will either purchase the goods from the shipping company to resell them elsewhere or charge for its disposal.The avenue for cargo-salvage buyers is on the upswing in recent months. Historic shipping delays have led to an uptick in abandonment at the ports. At the two largest ports in the US, tens of thousands of shipping containers have been waiting at the port for over 9 days. In October, the Southern California ports reported that the amount of time unloaded shipping containers lingered in the locations hit a record, as carriers struggled to find space in overbooked warehouses.Cargo dwell times in the ports represent a ticking clock for importers as demurrage fees for the containers continue to accumulate. For many, excess port fees and spoiled or delayed seasonal products mean the best option is to abandon the shipments. Containers are also considered abandoned if the freight company files for bankruptcy. The Federation of Freight Forwarders Association (FIATA) says cargo is identified as abandoned when it has remained at the port for anywhere from 20 to 90 days, depending on the location.Shipping companies are ultimately left with the bill if importers don't pick up their goods. They can choose to donate, destroy or individually resell the products to a third party, but often an auction is the only way the company can avoid taking a significant loss. Professional cargo salvage buyers aren't the only ones that can buy the cargo. Unclaimed freight auctions are open to any and all buyers and often occur purely online.Read more about abandoned cargo on Bloomberg.Have you ever bought unclaimed freight? Reach out to the reporter at gkay@insider.comRead the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 2nd, 2021

"Here Comes A Revolution!" - Saxo Bank Unveils Its "Outrageous Predictions" For The Year Ahead

"Here Comes A Revolution!" - Saxo Bank Unveils Its 'Outrageous Predictions' For The Year Ahead Saxo Bank has today released its 10 Outrageous Predictions for 2022. The predictions focus on a series of unlikely but underappreciated events which, if they were to occur, could send shockwaves across financial markets: The plan to end fossil fuels gets a rain check Facebook faceplants on youth exodus The US mid-term election brings constitutional crisis US inflation reaches above 15% on wage-price spiral EU Superfund for climate, energy and defence announced, to be funded by private pensions Women’s Reddit Army takes on the corporate patriarchy India joins the Gulf Cooperation Council as a non-voting member Spotify disrupted due to NFT-based digital rights platform New hypersonic tech drives space race and new cold war Medical breakthrough extends average life expectancy 25 years As culture wars rage across the world, it’s no longer a question of if we get a socioeconomic revolution, but a question of when and how. But which revolutionary prediction do you think is most likely? Saxo CIO Steen Jakobsen summarizes the theme for 2022 Outrageous Predictions is Revolution. There is so much energy building up in our inequalityplagued society and economy. Add to that the inability of the current system to address the issue and we need to look into the future with the fundamental outlook that it’s not a question of whether we get a revolution, but more a question of when and how. With every revolution, some win and some lose, but that’s not the point—if the current system can’t change but must, a revolution is the only path forward. A culture war is raging across the globe and the divide is no longer simply between the rich and the poor. It’s also the young versus the old, the educated class versus the less educated working class, real markets with price discovery versus government intervention, stock market buy-backs versus R&D spending, inflation versus deflation, women versus men, the progressive left versus the centrist left, virtual signalling on social media versus real changes to society, the rentier class versus labour, fossil fuels versus green energy, ESG initiatives versus the need to supply the world with reliable energy—the list goes on. What’s interesting for me, having done this Outrageous Predictions list for twenty years, is that all of the above issues point to a cycle ending rather than a continuation of more of the same. Post-pandemic (well, mostly) the market is hoping that things will continue as before, but as an old mentor of mine used to say, when I answered one of his questions with “I hope”: “Listen, son, save hope for church on Sundays, and come back when you have something more concrete.” The year 2022 is likely to see far less of what markets are hoping for and far more in the way of volatility as revolutionary movements kick into gear that challenge the status quo as we grope our way towards a new paradigm. Some of these movements will get things right, some of them will make mistakes, but we need to get started. Pretty much everything needs to change if we are to achieve zero emissions, less inequality, stable energy and importantly, more productivity. 2021 was a year in which we thought we could firmly put Covid behind us, but as 2022 rolls into view, we’re simply not there yet. It was a year with unprecedented fiscal transfers, especially to lower-income households, which created excess demand in a geopolitically and supply chain–fragmented world. The physical world simply became too small to absorb the good, if misguided, intentions of politicians and central banks to keep the economy on an even keel. Now we find ourselves with an energy crisis on our hands—and that’s not an outrageous call. But how we deal with it could create both policy mistakes and fundamental changes. A cold winter, for example, could spark a counter-revolution against the current alternative energy narrative, requiring that we reconfigure our expectations around how quickly we can abandon fossil fuels (Outrageous Prediction number 1 for 2022!) and even reclassifying nuclear energy as green. Doing anything else is simply not viable if we want to avoid a collapse in the real economy. We do realise that the Revolution theme for OP 2022 can create negative associations. To many of us, the word Revolution calls forth the 1789 French Revolution with its call for “Liberty, Equality, and Fraternity”, but also the Russian Revolution and its “smash the capitalists” principles. But our intent is the broader definition of revolution: not the physical overthrowing of governments, but eurekalike moments that trigger a change of thinking, a change of behaviour and a rejection of the unsustainable status quo. Hopefully, each of the Outrageous Predictions echoes that general point, with a couple of the revolutions triggered by the “involuntary” implications of technical progress: hypersonic missiles and longevity therapy. We need more liberty from governments in some areas, like a less heavy-handed monetary policy and the moral hazard of unproductively backstopping markets it brings. And we need more regulation in others, like avoiding the dangers of a hyper-financialised economy, too-powerful monopolies and inequality. Most urgently, we need to provide a brighter outlook for the world’s young people and better cooperation among nations instead of the present trend away from globalisation and multilateral institutions. We collaborated globally on Covid vaccines in 2020 and 2021. Now we need a new Manhattan Project–- type endeavour to set the marginal cost of energy, adjusted for productivity, on the path to much lower levels while eliminating the impact of our energy generation on the environment. Such a move would unleash the most significant productivity cycle in history: we could desalinate water, make vertical farms feasible almost anywhere, enable the leap to quantum computing, and continue to explore new boundaries in biology and physics. Remember that the world is forever evolving if at varying speeds, while business and political cycles are always finite. We are betting that in 2022 the speed of evolution kicks up a few notches into a revolutionary state as a new cycle gets under way. ‘Change is good’ needs to be the new mantra, or at minimum: “trial and error”. Let’s at least try and err some more rather than trying to forever kick the can down the road! Finally, we must emphasise our annual caveat, that these Outrageous Predictions should not be seen as our official view on the market and politics. This year, more than ever, we’re trying to provoke you and ourselves to think outside the box and to engage in discussing the important topics we raise. Let the fun, and the future, begin. *  *  * The plan to end fossil fuels gets a rain check Summary: Policymakers kick climate targets down the road and support fossil fuel investment to fight inflation and the risk of social unrest while rethinking the path to a low-carbon future. Facebook faceplants on youth exodus Summary: The young abandon Facebook’s platforms in protest against their mining of personal information for profit; the attempt by Facebook parent Meta to reel them back in with the Metaverse stumbles. The US mid-term election brings constitutional crisis Summary: The US mid-term election sees a stand-off over the certification of close Senate and/or House election results, leading to a scenario where the 118th Congress is unable to sit on schedule in early 2023. US inflation reaches above 15% on wage-price spiral Summary: By the fourth quarter of 2022, US CPI inflation reaches an annualized 15% as companies bid up wages in an effort to find willing and qualified workers, triggering a wage-price spiral unlike anything seen since the 1970’s. EU Superfund for climate, energy and defence announced, to be funded by private pensions Summary: To defend against the rise of populism, deepen the commitment to slowing climate change, and defend its borders as the US security umbrella recedes, the EU launches a bold $3 trillion Superfund to be funded by pension allocations rather than new taxes. Women’s Reddit Army takes on the corporate patriarchy Summary: Mimicking the meme stock Reddit Army tactics of 2020-21, a group of women traders launch a coordinated assault on companies with weak records on gender equality, leading to huge swings in equity prices for targeted companies. India joins the Gulf Cooperation Council as a non-voting member Summary: The world’s geopolitical alliances will lurch into a phase of drastic realignment as we have an ugly cocktail of new deglobalising geopolitics and much higher energy prices. Spotify disrupted due to NFT-based digital rights platform Summary: Musicians are ready for change as the current music streaming paradigm means that labels and streaming platforms capture 75-95 percent of revenue paid for listening to streamed music. In 2022, new blockchain-based technology will help them grab back their fair share of industry revenues. New hypersonic tech drives space race and new cold war Summary: The latest hypersonic missile tests are driving a widening sense of insecurity as this tech renders legacy conventional and even nuclear military hardware obsolete. In 2022 a massive hypersonic arms race develops among major militaries as no country wants to feel left behind. Medical breakthrough extends average life expectancy 25 years Summary: Young forever, or for at least a lot longer. In 2022, a key breakthrough in biomedicine brings the prospect of extending productive adulthood and the average life expectancy by up to 25 years, prompting projected ethical, environmental and fiscal crises of epic proportions. *  *  * Read the full report below: Tyler Durden Thu, 12/02/2021 - 08:45.....»»

Category: personnelSource: nytDec 2nd, 2021

Methode Electronics, Inc. Reports Fiscal Second Quarter 2022 Financial Results

Record Electric and Hybrid Vehicle Application Sales Strong Industrial Segment Sales $34.8 Million in Share Buybacks CHICAGO, Dec. 02, 2021 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE:MEI), a leading global supplier of custom-engineered solutions for user interface, LED lighting and power distribution applications, today announced financial results for the second quarter of fiscal 2022 ended October 30, 2021. Fiscal Second Quarter 2022 Highlights Net sales were $295.5 million Electric and hybrid vehicle applications were 16 percent of net sales, a record in dollars Net income was $27.5 million, or $0.72 per diluted share Company purchased 807,516 shares of its common stock for $34.8 million Consolidated Fiscal Second Quarter 2022 Financial ResultsMethode's net sales were $295.5 million, which included a favorable foreign currency impact of $2.8 million, down 1.8% compared to $300.8 million in the same quarter of fiscal 2021. Excluding the foreign currency impact, net sales were down 2.7% compared to the same quarter of fiscal 2021. The decrease was due to lower sales volumes in the Automotive segment, partially offset by higher sales volumes in the Industrial segment. Income from operations was $33.2 million or 11.2% of net sales, compared to $45.0 million or 15.0% of net sales in the same quarter of fiscal 2021. The decrease was mainly due to higher material and other costs associated with supply chain disruptions. Other income was $0.9 million, compared to $2.6 million in the same quarter of fiscal 2021. The decrease was primarily due to lower international government assistance and unfavorable foreign exchange. Income tax expense was $5.5 million, compared to $7.6 million in the same quarter of fiscal 2021. The effective tax rate was 16.7%, compared to 16.5% in the same quarter of fiscal 2021. Net income was $27.5 million or $0.72 per diluted share, compared to $38.6 million or $1.01 per diluted share in the same quarter of fiscal 2021. The decrease was mainly driven by the lower income from operations and the lower other income. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was $47.4 million, compared to $60.2 million in the same quarter of fiscal 2021. Debt was $223.1 million at the end of the quarter, compared to $240.1 million at the end of fiscal 2021. Net debt, a non-GAAP financial measure defined as debt less cash and cash equivalents, was $45.9 million, compared to $6.9 million at the end of fiscal 2021. The increase in net debt was primarily driven by the use of cash to fund the share buyback program. Free cash flow, a non-GAAP financial measure defined as net cash provided by operating activities less purchases of property, plant, and equipment, was $21.6 million, compared to $36.7 million in the same quarter of fiscal 2021. The decrease was mainly due to investment in working capital including inventory to support sales and supply chain mitigation efforts.On March 31, 2021, the Board of Directors authorized the purchase of up to $100.0 million of Methode common stock. The company purchased and retired 807,516 shares of stock for $34.8 million in the quarter. As of October 30, 2021, a total of 1,132,978 shares have been purchased under the authorization at a total cost of $49.9 million. Segment Fiscal Second Quarter 2022 Financial ResultsComparing the Automotive segment's quarter to the same quarter of fiscal 2021, Net sales were $196.0 million, down $19.7 million or 9.1% from $215.7 million. The decrease was mainly due to lower sales volumes in North America resulting from customer production being reduced due to semiconductor shortages. The segment net sales in the quarter were positively impacted by $1.9 million from foreign currency translation. Income from operations was $23.6 million, down $15.2 million or 39.2% from $38.8 million primarily due to lower sales volumes and higher material costs and other costs associated with supply chain disruptions. Income from operations was 12.0% of net sales, down from 18.0%. Comparing the Industrial segment's quarter to the same quarter of fiscal 2021, Net sales were $80.7 million, up $12.8 million or 18.9% from $67.9 million. All product categories had higher sales including electric vehicle busbars, commercial vehicle lighting, and radio remote controls. The segment net sales in the quarter were also positively impacted by $0.9 million from foreign currency translation. Income from operations was $18.8 million, up $2.7 million or 16.8% from $16.1 million primarily due to higher sales volume. The increase was partially offset by higher material and logistics costs. Income from operations was 23.3% of net sales, down from 23.7%. Comparing the Interface segment's quarter to the same quarter of fiscal 2021, Net sales were $18.0 million, up $1.6 million or 9.8% from $16.4 million primarily due to higher sales in cloud computing applications. Income from operations was $4.4 million, up $1.3 million or 41.9% from $3.1 million. Income from operations was 24.4% of net sales, up from 18.9%. Comparing the Medical segment's quarter to the same quarter of fiscal 2021, Net sales were $0.8 million, unchanged from the prior year. Loss from operations was $1.8 million, compared to a loss of $1.5 million. Fiscal 2022 Full Year GuidanceFor the fiscal year 2022, due to the ongoing supply chain disruptions, the company revised its expectation for net sales to be in the range of $1,140 to $1,160 million, compared to the previous range of $1,175 to $1,235 million. Its expectation for diluted earnings per share was revised to a range of $3.00 to $3.20, compared to the previous range of $3.35 to $3.75. The guidance is subject to disruption due to a variety of factors including the impact from the COVID-19 pandemic, the ongoing semiconductor shortage, other supply chain disruptions, and both short and long-term supply chain rationalization and mitigation efforts. Management CommentsPresident and Chief Executive Officer Donald W. Duda said, "While our businesses continued to be impacted by the ongoing supply chain and logistics disruptions, our mitigation efforts helped support solid sales, including a strong performance in the Industrial segment and a record for EV applications." Mr. Duda added, "The ongoing supply chain disruptions have lingered longer than anticipated and, while our diversification will lessen the impact, the auto demand recovery will take more time. However, despite these short-term headwinds, we remain committed to our long-term, balanced capital allocation strategy as evidenced by over $34 million in shares purchased in the second quarter."Non-GAAP Financial MeasuresTo supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Methode uses certain non-GAAP financial measures, such as EBITDA, Net Debt, and Free Cash Flow. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. Management believes EBITDA is useful to investors as it is a measure that is commonly used by other companies in our industry and provides a comparison for investors to the company's performance versus its competitors. Management believes Net Debt is a meaningful measure to investors because management assesses the company's leverage position after considering available cash that could be used to repay outstanding debt. Management believes Free Cash Flow is a meaningful measure to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures, which are both necessary to maintain the company's asset base and which are expected to generate future cash flows from operations. Methode's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. Conference CallThe company will conduct a conference call and webcast to review financial and operational highlights led by its President and Chief Executive Officer, Donald W. Duda, and Chief Financial Officer, Ronald L. G. Tsoumas, today at 10:00 a.m. CST. To participate in the conference call, please dial 888-506-0062 (domestic) or 973-528-0011 (international) at least five minutes prior to the start of the event. A simultaneous webcast can be accessed through the company's website,, on the Investors page. A replay of the teleconference will be available shortly after the call through December 16, 2021, by dialing 877-481-4010 and providing passcode 43618. A webcast replay will also be available through the company's website,, on the Investors page. About Methode Electronics, Inc.Methode Electronics, Inc. (NYSE:MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, LED lighting system, power distribution and sensor applications. Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, consumer appliance, and medical devices. Our business is managed on a segment basis, with those segments being Automotive, Industrial, Interface and Medical. Forward-Looking StatementsThis press release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the safe harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Methode's expectations on a quarterly basis or otherwise. The forward-looking statements in this press release involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports. Such factors may include, without limitation, the following: 1) Impact from pandemics, such as the COVID-19 pandemic; 2) Dependence on the automotive and commercial vehicle industries; 3) Dependence on our supply chain, including semiconductor suppliers; 4) Dependence on a small number of large customers, including two large automotive customers; 5) Dependence on the availability and price of materials; 6) Failure to attract and retain qualified personnel; 7) Timing, quality and cost of new program launches; 8) Risks related to conducting global operations; 9) Ability to compete effectively; 10) Investment in programs prior to the recognition of revenue; 11) Ability to withstand pricing pressures, including price reductions; 12) Impact from production delays or cancelled orders; 13) Ability to successfully benefit from acquisitions and divestitures; 14) Ability to withstand business interruptions; 15) Breaches to our information technology systems; 16) Ability to keep pace with rapid technological changes; 17) Ability to protect our intellectual property; 18) Costs associated with environmental, health and safety regulations; 19) International trade disputes resulting in tariffs and our ability to mitigate tariffs; 20) Impact from climate change and related regulations; 21) Ability to avoid design or manufacturing defects; 22) Recognition of goodwill and long-lived asset impairment charges; 23) Ability to manage our debt levels and any restrictions thereunder; 24) Currency fluctuations; 25) Income tax rate fluctuations; 26) Judgments related to accounting for tax positions; 27) Adjustments to compensation expense for performance-based awards; 28) Timing and magnitude of costs associated with restructuring activities; and 29) Impact to interest expense from the replacement or modification of LIBOR. For Methode Electronics, Inc.Robert K. CherryVice President, Investor 708-457-4030 METHODE ELECTRONICS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(in millions, except per-share data)     Three Months Ended     Six Months Ended       October 30, 2021     October 31, 2020     October 30, 2021     October 31, 2020   Net sales   $ 295.5     $ 300.8     $ 583.3     $ 491.7                                     Cost of products sold     226.3       220.0       442.4       365.8                                     Gross profit     69.2       80.8       140.9       125.9                                     Selling and administrative expenses     31.2       30.8       64.0       57.4   Amortization of intangibles     4.8       5.0       9.6       9.7                                     Income from operations     33.2       45.0       67.3       58.8                                     Interest expense, net     1.1       1.4       2.2       3.0   Other income, net     (0.9 )     (2.6 )     (2.7 )     (6.0 )                                   Income before income taxes     33.0       46.2       67.8       61.8                                     Income tax expense     5.5       7.6       11.2       2.5  .....»»

Category: earningsSource: benzingaDec 2nd, 2021

Exxon Mobil CEO: Latest Spending Plan Puts Earnings Goal ‘Back On Track’

Following is the unofficial transcript of a CNBC exclusive interview with Exxon Mobil Corp (NYSE:XOM) Chairman & CEO Darren Woods on CNBC’s “Squawk on the Street” (M-F 9AM – 11AM ET) today, Wednesday, December 1st. Following is a link to video on Q3 2021 hedge fund letters, conferences and more Exxon Mobil CEO: Latest […] Following is the unofficial transcript of a CNBC exclusive interview with Exxon Mobil Corp (NYSE:XOM) Chairman & CEO Darren Woods on CNBC’s “Squawk on the Street” (M-F 9AM – 11AM ET) today, Wednesday, December 1st. 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Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q3 2021 hedge fund letters, conferences and more Exxon Mobil CEO: Latest Spending Plan Puts Earnings Goal 'Back On Track' DAVID FABER: Welcome back to “Squawk on the Street.” I’m David Faber on the Houston campus of Exxon Mobil joined now by the company's Chairman and CEO, Darren Woods. A nice background behind you, by the way, I'm told Darren it’s the drilling fluids analysis that's going on. There's some people actually working on that. Important part of the business, figuring out new fluids that will actually help obviously optimize the drilling process, not what we're here to talk about today though but very glad that we could join you. We are here to talk about the release out this morning in which, you know, you codify many of the targets that you shared to a certain extent during your last quarter. So, what is different about today in terms of why people should think about these numbers again if they already sort of saw you talk about them a few weeks back? DARREN WOODS: Well, let me just extend my welcome. Glad to have you here, David, and glad to share the view of the lab and some of the discussions and things that we're doing there. With respect to the release today, what we did and our third quarter earnings call in October is we had just had a preliminary review with the board, shared some of the perspective of the things the board was looking at as part of our plan. In November, we finalize that plan and in this release, basically puts in a lot more detail behind the initial numbers that we shared in October. And it's a plan frankly that we’re very, very proud of. If you think back in 2018, we set some fairly aggressive targets like for 2025 to double earnings and cash flow. Pandemic got in the way of that and obviously set those plans back. This plan basically achieves doubling the earnings by 2025 back on track, nearly doubles cash flow and by 2027 basically double earnings and cash flow very soundly so very proud of the progress that we've made despite the setback of the pandemic. FABER: Yeah, a lot of focus is also going to be on the $15 billion number, again, a number that we had seen previously, but a bit more detail behind it as well. You know, you're talking about 15 billion on greenhouse gas emission reduction products over the next six years. There are those who want to know what's the return going to look like on that expenditure and how are you going to go about spending it? WOODS: Yeah, so it's a mix and what we've tried to do here, and I think one of the things that board has brought to this year's plan in the discussion is challenge us to take a lead in how Exxon Mobil can help society address this challenge of reducing emissions. That portfolio, $15 billion, includes projects that today generate good returns with existing policy. There are other aspects of that portfolio where we are developing projects, seeding projects, large scale projects, in anticipation of policy and trying to develop those projects in a way that can inform policymakers to help them think about how best to shape policy— FABER: So, what would be an example of that Darren? WOODS: So, the Houston hub that we proposed is a great example of that where we've got 11 companies collaborating to make a significant step change in emissions 50 million tons per annum by 2030, 100 million tons per annum by 2040, very high concentrations of CO2 and do that at a cost which is cheaper than essentially any other programs or initiatives that the government is currently funding. So that's a great example but it needs some policy to help support that project. FABER: What’s the policy then? WOODS: So, you need, you need policy, which frankly, the infrastructure bill has helped with to regulate pore space and allow access to pore space. We're going to need infrastructure and pipeline, we need some additional 45Q, some additional incentives for carbon reduction that's being considered in the Build Back Better legislation, so I think there's the, you know, the, the policy makers are receptive to the ideas and the constructs that we're trying to put together to table opportunities, make significant reductions in a cost-effective way. FABER: So, if you see those policy changes that you're talking about, is it possible that you will choose to increase that number or is that number going to be what your shareholders should expect for the next six years? WOODS: If you look at that number, last year, we've more than quadrupled it and it's really a function of the organization focusing and finding the opportunities around the world. We're working with governments around the world. So, I would expect that if those policies come into play and provide the necessary incentives to drive that investment, you'd see that investment level go up. Absolutely. FABER: And you talked about the use in the hub, and you talked about, you know, carbon capture obviously. There’s a lot of carbon that comes out of there. But we're not in a technological place where we can actually suck it out of the air in an efficient way and just store it somewhere or are we? WOODS: No, that's the holy grail if you think about if you could leave the existing infrastructure in place which is very efficient today and find a way to extract CO2 out of the air cost effectively, that's the holy grail because you get your cake and you eat it too. There are a lot of people working on that technology and I think we will make advances there, but I would say you need to spend money on that technology have some breakthroughs there and you also need to develop a broader set of portfolios because as you know, predicting when you're going to have a breakthrough and the magnitude of that breakthrough is often challenging so you better have a portfolio of opportunities that you're pursuing. But I think direct air captures is an important technology. FABER: You do, you know, when you talk about carbon capture which is becoming an important component of your product portfolio for lack of a better term, I mean, you say, unique capability that Exxon Mobil has. You talk about leveraging your advantage in science and technology. Give our viewers some sense as to what you're talking about when you say that. What is it about Exxon Mobil that gives you the confidence that that's where you should be focused and that that's where you can distinguish yourself, as you say, in terms of being sort of unique? WOODS: So, if you go back and look at our history over 135 years, I mean, our job has been to discover and develop hydrocarbon and then to transform that hydrocarbon into products that consumers need and to manage the impact of that hydrocarbon. What we're talking about with carbon capture is just a variation on that theme of managing carbon and managing hydrocarbon molecules. And so today, we're the largest sequester of carbon in the world today, we've captured more anthropogenic CO2 than any other entity in the world and, so we've got a lot of experience in that space. It's going to require large scale projects, which we have an expertise in. It’s going to be needed all around the world where we have the relationships with governments and had done that work in the past, requires technology and advances in technology which is where we spend a lot of money and it requires an understanding of how to integrate those projects into existing facilities which obviously, we have a very large facility footprint. So, there's a lot of aspects of what we do today that lend itself and support what we can do tomorrow with carbon capture and the beauty of carbon capture hydrogen and biofuels, all those lower emissions investment opportunities draw on the same sets of skills and capabilities, and in fact, are competitive advantages. So as the world transitions and we have this uncertainty as to exactly when it's going to happen, we have the optionality and the flexibility to shift from the traditional investments in what we're leveraging are those skills to the alternative investments and we can pace that as the world transitions and as we work with governments, and if that accelerates faster, we can ship those resources faster. If it slows down, we can keep those resources balanced. FABER: What’s your guess right now, you know, based on what you see right now and our ability to actually combat climate change, come to some sort of agreement by the way within our own country, not to mention with nations around the world, what's your best guess in terms of how that shift is going to take place and when? WOODS: You know, I think it's hard to predict and that is not, in fact, very different than what the price of crude or any of our other products can be very difficult to predict so the plan is to basically build an optionality, so you're prepared irrespective of what direction that goes in. It's challenging to put that policy in place. The fact of the matter is today, the alternatives to replacing the existing energy system are expensive, and consumers will have to pay for that. We're working hard to bring that cost down. I think that's the best solution is to invest in the technology, provide alternatives that don't require consumers to give up the standards that they’ve become accustomed to and don't require them to spend a lot of money. I think that's the work that has to happen, and how quickly that technology evolves to get those costs down will help drive the pace of the transition. FABER: But people are going to have to potentially be willing to spend more is what I hear you saying. WOODS: I think, you know, there will be a cost for moving to what is today a very efficient to a new alternative. The more that we do that cost will come down obviously and the better the technology becomes that that cost will come down but that there will be a transition cost. No doubt about it. FABER: You know, speaking of that transition of course, we're focused on Europe to a certain extent this winter because the wind hasn’t been blowing quite as hard in the North Sea, the sun doesn't always shine and there has been a transition that has taken place more, more so than here certainly in terms of power generation. Are you concerned at all about what you see in Europe and potentially what they're facing? WOODS: Yeah, no, I think, it's I am concerned and it is this, I think when you're moving from if you think about today's global energy system, it has developed over decades and billions of people around the world depend on it to support their modern living and so as you transition out of that, which has to happen to get the emissions down which I think is the right objective, you gotta be very thoughtful about how you do that because if you, if you don't have the same availability and reliability, that will translate into people going without energy, which is absolutely critical to their standards of living and obviously in the wintertime, it becomes very important with heat so we're going to have a challenge I think. It's going to be a function of how, how cold it gets and what the demand looks like. It's been compounded not just by the transition in the investments and the alternatives, but coming out of the pandemic, the industry saw a tremendous impact from that pandemic and a loss of revenue and prices being as low as they were and so investments had to pull back. The industry didn't have the money to make the investments that has in a depleting business has really constrained supply. Now the demand is picking back up again. So, there’s a number of dynamics there are influencing that, we got to get our, we got to get through that, frankly. FABER: Well, speaking of rising prices, I did want to get your response to President Biden a few weeks back when he asked the Federal Trade Commission to examine oil and gas companies and their role in rising gasoline prices. There seem to be this idea that there's potentially illegal conduct. What's your response? WOODS: I think, you know, if you go back in time in history, every time we see the supply and demand balances get tightened, prices rise. You see similar types of investigations. I think you're gonna find there's nothing, there's no there there. I mean, frankly, this is a commodity market. The prices are set by the amount of supply that's out there and by the amount of demand. If you restrict that supply and you don't do anything about demand, I promise you prices will go up. FABER: Can you give us any prediction on oil prices? WOODS: I can't do that, David. I wish I could. FABER: And finally though, how about cost reduction? You've taken four and a half billion out in costs since I think 18 or maybe 19, you have a $6 billion target, are you going to be able to exceed that? WOODS: Absolutely. I think, I've been very proud of the organization. The changes that we made starting in 2018, 2019, where we changed how the organization was configured and moved to value change that allowed us to really focus the organization in becoming more efficient, both from a capital deployment standpoint, if you look at the, the earnings and cash flow growth that I talked about, we're doing that with a lot less capital than we had before in large part because of the productivity we're getting out but it's also allowing us to significantly reduce our expenses and I expect to beat $6 billion easily. FABER: Alright, we'll hold you to that. WOODS: Okay. FABER: And look forward to future interview, as well when we discuss it. Darren, thank you for taking time. Appreciate it. WOODS: Thank you David. Thanks for coming down. FABER: Sure thing. Darren Woods, Chairman and CEO of Exxon Mobil. Carl, back over to you. 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Category: blogSource: valuewalkDec 1st, 2021

Solid Demand to Drive Lincoln Electric (LECO) Amid High Costs

Lincoln Electric (LECO) will gain on strong demand, acquisitions and innovative product launches. However, escalating freight and material costs might dent margins. Lincoln Electric Holdings, Inc. LECO is benefiting from improving demand across its end markets, robust backlog levels, acquisitions and pricing actions. Focus on developing new products, and utilization of digital platforms to engage customers will continue to drive the company’s top-line performance. It has been implementing cost control measures, which will boost margins and help negate the impact of escalating labor, freight and raw material costs.Solid Demand Bodes Well for 2021 ResultsOn Oct 28, 2021, Lincoln Electric reported record third-quarter 2021 adjusted earnings of $1.56 per share. The bottom line improved 42% year over year on robust demand across end markets and strong execution of its 2025 Higher Standard Strategy initiatives. The company beat the Zacks Consensus Estimate of $1.54. The company has surpassed the earnings estimates in each of the trailing four quarters, the average surprise being 11.9%.Lincoln Electric has witnessed improving order rates across all segments as its end markets continue to recover. Both consumables and equipment sales are improving year over year. While Heavy industries led the pack with a low to mid-30% growth rate followed by Construction/Infrastructure, Automotive/Transportation and General Industries rose in the mid-teens to 20% rate. Robust backlog and acquisitions are expected to benefit the company’s performance in the rest of the year.Lincoln Electric is focused on its cost-reduction actions to sustain margins. After yielding cost-saving benefits of $88 million in 2020, the company anticipates incremental cost savings between $25 million and $30 million in the current year.The Zacks Consensus Estimate for the company’s earnings for 2021 is currently pegged at $6.16, suggesting year-over-year growth of 48%. The same for 2022 stands at $7.04, indicating a year-over-year improvement of 14%.Innovation, Acquisitions to Fuel GrowthThe company is committed to new product development and utilizing digital platforms to engage customers. Lincoln Electric’s product launches in the automation solutions market are likely to aid growth. Focus on its new additive services business will position the company as a manufacturer of large-scale 3D-printed metal spell parts, prototypes and tooling for industrial customers, which is a major growth prospect.Meanwhile, the company is continuously evaluating acquisition options focused primarily on tuck-in assets, supporting its Higher Standard 2025 strategy. Lincoln Electric’s recent acquisition of Fabricated Tube Products and Shoals positions it well to capitalize on the growth prospects in the HVAC (Heating, ventilation and air conditioning) market. Earlier this year, the company acquired Zeman Bauelemente Produktionsgesellschaftm.b.H., a Zeman Group unit, to drive automation growth in structural steel applications. The buyout will boost the company’s annual automation sales by around 10% and expand its international automation capabilities.Balanced Capital Allocation StrategyAs of Sep 30, 2021, Lincoln Electric had liquidity of $718 million. The company ended the third quarter of 2021 with cash in hand of around $160 million. Total debt as of Sep 30, 2021 was $759 million. Its total debt to total capital ratio was 0.47 as of Sep 30, 2021, lower than 0.48 as of Dec 31, 2020. Its times interest earned ratio was 16.3 at the end of third-quarter 2021. Lincoln Electric expects strong cash flow generation and cash conversion in excess of 90% in 2021. Lincoln Electric has a balanced capital allocation strategy, prioritizing growth investment while returning cash to shareholders.High Costs, Supply Chain Issues PersistThe company expects inflationary headwinds in 2021 stemming from escalating labor, freight and raw material costs to dent its margins. Ongoing supply chain disruption remains a concern. Lincoln Electric is implementing pricing actions to mitigate these impacts.Price PerformanceLincoln Electric’s shares have gained 17.4% over the past year against the industry’s decline of 5.1%.Image Source: Zacks Investment ResearchZacks Rank & Stocks to ConsiderLincoln Electric currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Industrial Products sector are A. O. Smith Corporation AOS, ScanSource, Inc. SCSC and SiteOne Landscape Supply SITE. All of these stocks carry a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.A. O. Smith’s shares have surged 44% in the past year. The company has a trailing four-quarters earnings surprise of 16.8%, on average.ScanSource has a projected earnings growth rate of around 19% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.The company’s shares have appreciated 22% in a year. ScanSource has a trailing four-quarter earnings surprise of 34.6%, on average.SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.The company’s shares have increased 75% in the past year. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report ScanSource, Inc. (SCSC): Free Stock Analysis Report SiteOne Landscape Supply, Inc. (SITE): Free Stock Analysis Report To read this article on click here......»»

Category: topSource: zacksDec 1st, 2021

Smith & Wesson (SWBI) to Post Q2 Earnings: What"s in Store?

Product launches, increased market share, rebranding efforts and cost savings will reflect in Smith & Wesson Brands' (SWBI) fiscal second-quarter results. Smith & Wesson Brands, Inc. SWBI is scheduled to report second-quarter fiscal 2022 results, after market close on Dec 2.In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate but revenues missed the same. On a year-over-year basis, earnings and revenues grew 103.9% and 19.5%, respectively.Smith & Wesson’s earnings topped the consensus mark in the last four quarters, the average surprise being 46.8%.Trend in Estimate RevisionThe Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share has been unchanged at $1.37 over the past 60 days. Nonetheless, this indicates an increase of 47.3% from the year-ago quarter. The consensus estimate for revenues is pegged at $277.9 million, suggesting 11.7% year-over-year growth.Factors to NoteSmith & Wesson is a leading firearm manufacturer and designer, boasting a broad portfolio of quality firearms, related products and training to the global military, law enforcement and consumer markets.Notably, the FBI's National Instant Criminal Background Check System (NICS) showed comparatively high background checks this year against inflated demand a year ago related to the pandemic. The NSSF-adjusted figure was 1.43 million in October 2021 compared with 1.77 million in October 2020. Through the first 10 months of 2021, the total NSSF-adjusted NICS reflects a decrease of 11.9% year over year.Even with the difficult comps versus the solid results from last year, increased manufacturing capacity due to the company’s flexible model as well as increased market share and consumer preference for products have been driving the company’s sales.Overall, sustained market share growth, various product launches, including entry into a brand new category, various marketing campaigns, GUNSMARTS, rebranding efforts, consumer research studies, will reflect in the company’s quarterly performance.The company has been executing a strategy to streamline business operations and increase flexibility and cost-saving initiatives, contributing to significant margin expansion.Smith & Wesson Brands, Inc. Price and EPS Surprise Smith & Wesson Brands, Inc. price-eps-surprise | Smith & Wesson Brands, Inc. QuoteWhat Our Quantitative Model PredictsOur proven model does not conclusively predict an earnings beat for Smith & Wesson this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.3 Solid Consumer Discretionary PicksSome top-ranked stocks in the Consumer Discretionary sector are Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corporation BVH and Camping World Holdings, Inc. CWH.Hilton Grand Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 51.5% so far this year.The Zacks Consensus Estimate for Hilton Grand Vacations’ current financial year sales and earnings per share (EPS) suggests growth of 222.13% and 170.8%, respectively, from the year-ago period’s levels.Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 119.7% so far this year.The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates a rise of 27.5% and 199.3%, respectively, from the year-ago period’s levels.Camping World carries a Zacks Rank #2. The company benefits from the launch of a fresh peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development.Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 68.4% so far this year. The Zacks Consensus Estimate for CWH’s financial-year sales and EPS suggests growth of 25.9% and 77.1%, respectively, from the year-ago period’s levels. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Camping World (CWH): Free Stock Analysis Report Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report Smith & Wesson Brands, Inc. (SWBI): Free Stock Analysis Report Bluegreen Vacations Holding Corporation (BVH): Free Stock Analysis Report To read this article on click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 1st, 2021

Webco Industries, Inc. Reports Fiscal 2022 First Quarter Results

SAND SPRINGS, Okla., Nov. 30, 2021 /PRNewswire/ -- Webco Industries, Inc. (OTC:WEBC) today reported our first quarter results for fiscal year 2022, which ended October 31, 2021. For our first quarter of fiscal year 2022, we had a net income of $14.6 million, or $17.41 per diluted share, while in our first quarter of fiscal year 2021, we generated a net loss of $0.2 million, or a loss of $0.19 per diluted share.  Net sales for the first quarter of fiscal 2022 were $167.5 million, a 67.9 percent increase from the $99.8 million of net sales in last year's first quarter.  In the first quarter of fiscal year 2022, we had income from operations of $19.4 million after depreciation of $3.5 million.  The first fiscal quarter of the prior year generated income from operations of $0.2 million after depreciation of $3.5 million.  Gross profit for the first quarter of fiscal 2022 was $34.4 million, or 20.6 percent of net sales, compared to $7.3 million, or 7.3 percent of net sales, for the first quarter of fiscal year 2021.    Dana S. Weber, Chief Executive Officer and Board Chair, stated, "Despite turmoil in flat rolled steel that has increased the cost and restricted the availability of our raw materials, we have had what we believe was our best quarter in the Company's history due to the agility and innovation of our Trusted Teammates combined with a commercial environment that provided a wide range of commercial successes.  The comparisons between the current fiscal quarter and the first quarter of fiscal year 2021 are very favorable in part because the prior year's quarter suffered adverse consequences related to the COVID-19 pandemic and low oil prices.  Current hot rolled carbon steel cost has been at an unprecedented level, although consistently receiving timely delivery of all forms of raw materials has been a greater concern.  Where possible, we have increased our sales prices in response to the increases in steel cost.  In addition, non-steel supplies and operating costs, as well as freight services, have increased in cost and decreased in availability.  Labor costs likewise experienced increases, and labor availability has been a challenge.  Our strong balance sheet and liquidity position have positioned us well to successfully navigate and gain strength since the onset of those unforeseen global events.  We remain focused on financial strength and agility.  Our total cash and available credit on our revolver was $58.1 million at October 31, 2021, which we believe to be a competitive advantage." Selling, general and administrative expenses were $15.0 million in the first quarter of fiscal 2022 and $7.1 million in the first quarter of fiscal 2021. SG&A expenses in the first quarter of fiscal year 2022 reflect an increase in costs associated with increased profitability, such as company-wide incentive compensation and variable pay programs.  Interest expense was $0.6 million in the first quarter of fiscal year 2022 and $0.4 million in the same quarter of fiscal year 2021.  The change in interest expense between the periods was mostly because we have higher debt levels due to greater working capital requirements.  Capital expenditures incurred amounted to $4.9 million in the first quarter of fiscal year 2022.  Our capital investments were largely focused on improving our efficiencies, yields, quality, and capabilities.  As of October 31, 2021, we had $8.8 million in cash, in addition to $49.3 million of available borrowing under our $160 million senior revolving credit facility.  Availability on the revolver, which had $104.4 million drawn at October 31, 2021, was subject to advance rates on eligible accounts receivable and inventories.  Borrowings are up primarily due to increased working capital requirements associated with increased sales prices and inventory cost.  Our term loan and revolver mature in June 2025.  Accounting rules require asset-based debt agreements like our revolver to be classified as a current liability, despite its June 2025 maturity. Webco's stock repurchase program authorizes the purchase of up to $20 million of our outstanding common stock in private or open market transactions.  During the first quarter of fiscal year 2022, we repurchased 23,761 shares of the company's stock.  Webco purchased 50,995 and 36,306 shares in fiscal years 2021 and 2020.   The repurchase plan may be extended, suspended, or discontinued at any time, without notice, at the Board's discretion.  Webco's mission is to continuously build on our strengths as we create a vibrant company for the ages.  We leverage on our core values of trust and teamwork, continuously building strength, agility, and innovation.  We focus on practices that support our brand, such that we are 100% engaged every day to build a forever kind of company for our Trusted Teammates, customers, business partners, investors, and community.  We provide high-quality carbon steel, stainless steel and other metal specialty tubing products designed to industry and customer specifications.  We have five tube production facilities in Oklahoma and Pennsylvania and eight value-added facilities in Oklahoma, Illinois, Michigan, Pennsylvania, and Texas, serving customers globally. Forward-looking statements: Certain statements in this release, including, but not limited to, those preceded by or predicated upon the words "anticipates," "appears," "available," "believe," "can," "consider," "expects," "forever," "hopes," "intends," "plans," "projects," "pursue,"  "should," "wishes," "would," or similar words may constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry ...Full story available on»»

Category: earningsSource: benzingaNov 30th, 2021

Pool Corp (POOL) Shares Rally 50% YTD: More Upside Left?

Pool Corp (POOL) benefits from increased maintenance and repair activities. Also, focus on supply-chain management bodes well. Pool Corporation POOL is poised to benefit from its remodel and replacement activities as well as robust base business. Also, focus on expansion initiatives bodes well.So far this year, shares of Pool Corp have gained 50.4% against the industry’s decline of 34.4%. The price performance was backed by solid earnings surprise history. Pool Corp’s earnings surpassed the Zacks Consensus Estimate in all of the trailing four quarters. Earnings estimates for 2021 and 2022 have moved up 7.5% and 11.4%, respectively, in the past 60 days. This positive trend signifies bullish analysts’ sentiments and justifies the company’s Zacks Rank #2 (Buy), indicating robust fundamentals and the expectation of outperformance in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchFactors Driving GrowthFocus on Remodeling & Replacement Activities: Pool Corp continues to benefit from remodeling and replacement activities. During third-quarter 2021, building materials sales increased 24% year over year. The company is benefitting from strong demand in construction and remodel markets. Equipment and chemical sales increased 23% and 10% year over year, respectively, in the third quarter. The upside was primarily driven by higher demand for heaters, pumps, filters, lighting, automation and pool remodeling. Chemical sales benefitted from increased trichlor product pricing. The company believes that the flexibility of the new work-from-home norm is likely to act as a catalyst for investments in home improvements. Also, benefits from products (such as automation and the connected pool) and strengthening of the southern migration are likely.Solid Base Business: The company is benefitting from the solid performance of its base business segment. In third-quarter 2021, the company’s Base Business segment contributed 95.6% to total revenues. During the quarter, revenues from Base Business increased 18.6% year over year to $1,348.8 million. Elevated demand for outdoor living products along with favorable weather conditions benefitted the company. The segment's gross margins improved 250 basis points year over year, backed by its supply-chain management initiatives.Expansion Efforts: Pool Corp continues to focus on expansion initiatives to boost revenues. The company is foraying into newer geographic locations to expand in existing markets and launch innovative product categories to boost market share. It is trying to expand through various acquisitions. In this regard, the company is assimilating the TWC Distributors acquisition, thereby expanding the Florida market. The company expanded its Horizon network in Florida and California markets. So far this year, the company opened 10 new locations. Also, the company completed two strategic acquisitions during third-quarter 2021. We believe that the acquisitions and the new locations are likely to boost customer relationships and services, thereby enhancing the top line. During the third quarter, acquisitions contributed 5% to the company’s sales growth.Upbeat Views: Given the company’s ability to drive organic growth and manage cost structure through execution and capacity creation, the company raised its 2021 guidance. Pool Corp anticipates 2021 earnings per share in the range of $14.85-$15.35, up from the prior estimate of $13.75-$14.25. The company anticipates robust demand to continue backed by a strong housing market, new product launches as well as increased maintenance and repair activities.Other Key PicksSome other top-ranked stocks in the Consumer Discretionary sector are Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corporation BVH and Camping World Holdings, Inc. CWH.Hilton Grand Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 56.7% so far this year.The Zacks Consensus Estimate for Hilton Grand Vacations’ current financial year sales and earnings per share (EPS) suggests growth of 222.13% and 170.8%, respectively, from the year-ago period’s levels.Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 118.1% so far this year.The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates a rise of 27.5% and 199.3%, respectively, from the year-ago period’s levels.Camping World carries a Zacks Rank #2. The company benefits from the launch of a fresh peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development.Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 71.8% so far this year. The Zacks Consensus Estimate for CWH’s financial-year sales and EPS suggests growth of 25.9% and 77.1%, respectively, from the year-ago period’s levels. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs 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 Pool Corporation (POOL): Free Stock Analysis Report Camping World (CWH): Free Stock Analysis Report Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report Bluegreen Vacations Holding Corporation (BVH): Free Stock Analysis Report To read this article on click here......»»

Category: topSource: zacksNov 30th, 2021

Risk Cracks After Moderna CEO Comments Spark Global Stock Rout

Risk Cracks After Moderna CEO Comments Spark Global Stock Rout Ask a drug dealer if methadone helps cure a cocaine addition and - shockingly - you will hear that the answer is "hell no", after all an affirmative response would mean the fixer needs to get a real job. Just as shocking was the "admission" of Moderna CEO, Stéphane Bancel, who in the latest stop on his media whirlwind tour of the past 48 hours gave the FT an interview in which he predicted that existing vaccines will be much less effective at tackling Omicron than earlier strains of coronavirus and warned it would take months before pharmaceutical companies could manufacture new variant-specific jabs at scale. “There is no world, I think, where [the effectiveness] is the same level . . . we had with [the] Delta [variant],” Bancel told the Financial Times, claiming that the high number of Omicron mutations on the spike protein, which the virus uses to infect human cells, and the rapid spread of the variant in South Africa suggested that the current crop of vaccines may need to be modified next year. Here, the self-serving CEO whose sell-mode was fully engaged - after all what else would the maker of a vaccine for covid say than "yes, the world will need more of my product" - completely ignored the earlier comments from Barry Schoub, chairman of South Afruca's Ministerial Advisory Committee on Vaccines, who over the weekend said that the large number of mutations found in the omicron variant appears to destabilize the virus, which might make it less “fit” than the dominant delta strain. As such, it would be a far less virulent strain... but of course that would also reduce the need for Moderna's mRNA therapy and so Bancel failed to mention it. What is grotesque is that the Moderna CEO’s comments on existing vaccines’ effectiveness against the omicron variant is “old news so should be a fade,” says Prashant Newnaha, a senior Asia-Pacific rates strategist at TD Securities in Singapore. Indeed as Bloomberg notes, Bancel reiterated comments made by Moderna’s Chief Medical Officer Paul Burton during the weekend. Alas, the last thing algos care about is nuance and/or reading between the lines, and so moments after Bancel's interview hit, markets hit risk off mode on Tuesday, and yesterday’s bounce in markets immediately reversed amid fresh worries about the efficacy of currently available vaccines with U.S. equity futures dropping along with stocks in Europe. Bonds gained as investors sought havens. After dropping as much as 1.2%, S&P futures pared losses to -0.7%, down 37 points just above 4,600. Dow Eminis were down 339 points or 1% and Nasdaq was down -0.8%. Adding to concerns is Fed Chair Jerome Powell who today will speak, alongside Janet Yellen, at the Senate Banking Committee in congressional oversight hearings related to pandemic stimulus. Last night Powell made a dovish pivot saying the new variant poses downside risks to employment and growth while adding to uncertainty about inflation. Powell's comments dragged yields lower and hit bank stocks overnight. “The market’s reaction to reports such as Moderna’s suggest the ball is still very much in the court of proving that this will not escalate,” said Patrick Bennett, head of macro strategy for Asia at Canadian Imperial Bank of Commerce in Hong Kong. “Until that time, mode is to sell recoveries in risk and not to try and pick the extent of the selloff” U.S. airline and cruiseliner stocks dropped in premarket trading Tuesday, after vaccine maker Moderna’s top executives reiterated that the omicron variant of the coronavirus may require new vaccines. Most U.S. airline stocks were down: Alaska Air -5%, United -3.2%, American -3%, Spirit -2.7%, Delta -2.6%, JetBlue -2.6%, Southwest -1.7%. Here are some other notable movers today: U.S. banks decline in premarket trading following comments from Federal Reserve Chair Jerome Powell that may push back bets on when the central bank will raise rates. Citigroup (C US) -2.4%, JPMorgan (JPM US) -2.2%, Morgan Stanley (MS US) -2.6% Vaccine manufacturers mixed in U.S. premarket trading after rallying in recent days and following further comments from Moderna about treating the new omicron Covid-19 variant. Pfizer (PFE US) +1.6%, Novavax  (NVAS US) +1.3%, Moderna (MRNA US) -3.8% U.S. airline and cruiseliner stocks dropped in premarket trading Tuesday, after vaccine maker Moderna’s top executives reiterated that the omicron variant of the coronavirus may require new vaccines. Alaska Air (ALK US) -5%, United (UAL US) -3.2%, American (AAL US) -3% Krystal Biotech (KRYS US) jumped 4.3% in postmarket trading on Monday, extending gains after a 122% jump during the regular session. The company is offering $200m of shares via Goldman Sachs, BofA, Cowen, William Blair, according to a postmarket statement MEI Pharma (MEIP US) gained 8% postmarket after the cancer-treatment company said it will hold a webcast Tuesday to report on data from the ongoing Phase 2 Tidal study evaluating zandelisib in patients with relapsed or refractory follicular lymphoma Intuit (INTU US) declined 3.4% postmarket after holder Dan Kurzius, co-founder of Mailchimp, offered the stake via Goldman Sachs In Europe, the Stoxx 600 index fell to almost a seven-week low. Cyclical sectors including retail, travel and carmakers were among the biggest decliners, while energy stocks tumbled as crude oil headed for the worst monthly loss this year; every industry sector fell led by travel stocks. Earlier in the session, the Asia Pacific Index dropped 0.6% while the Hang Seng China Enterprises Index lost 1.5% to finish at its weakest level since May 2016. Asian stocks erased early gains to head for a third day of losses on fresh concerns that existing Covid-19 vaccines will be less effective at tackling the omicron variant. The MSCI Asia Pacific Index extended its fall to nearly 1% after having risen as much as 0.8% earlier on Tuesday. The current crop of vaccines may need to be modified next year, Moderna Chief Executive Officer Stephane Bancel said in an interview with the Financial Times, adding that it may take months before pharmaceutical firms can manufacture new variant-specific jabs at scale. U.S. futures also reversed gains. Property and consumer staples were the worst-performing sectors on the regional benchmark. Key gauges in Hong Kong and South Korea were the biggest losers in Asia, with the Kospi index erasing all of its gains for this year. The Hang Seng China Enterprises Index lost 1.5% to finish at its weakest level since May 2016. The fresh bout of selling offset early optimism spurred by data showing China’s factory sentiment improved in November. “With the slower vaccination rate and more limited health-care capacity in the region, uncertainty from the new omicron variant may seem to bring about higher economic risks for the region at a time where it is shifting towards further reopening,” said Jun Rong Yeap, a market strategist at IG Asia Pte. Asia’s stock benchmark is now down 3.5% for the month, set for its worst performance since July, as nervousness remains over the U.S. Federal Reserve’s tapering schedule and the potential economic impact of the omicron variant. “Moderna is one of the primary mRNA vaccines out there, so the risk-off sentiment is justified,” said Kelvin Wong, an analyst at CMC Markets (Singapore) Pte. Liquidity is thinner going into the end of the year, so investors are “thinking it’s wise to take some money off the table,” he added Japanese equities fell, reversing an earlier gain to cap their third-straight daily loss, after a report cast doubt on hopes for a quick answer to the omicron variant of the coronavirus. Telecoms and electronics makers were the biggest drags on the Topix, which dropped 1%, erasing an earlier gain of as much as 1.5%. Fast Retailing and SoftBank Group were the largest contributors to a 1.6% loss in the Nikkei 225. The yen strengthened about 0.4% against the dollar, reversing an earlier loss. Japanese stocks advanced earlier in the day, following U.S. peers higher as a relative sense of calm returned to global markets. Tokyo share gains reversed quickly in late afternoon trading after a Financial Times report that Moderna’s Chief Executive Officer Stephane Bancel said a new vaccine may be needed to fight omicron. “The report of Moderna CEO’s remarks has bolstered an overall movement toward taking off risk,” said SMBC Trust Bank analyst Masahiro Yamaguchi. “Market participants will probably be analyzing information on vaccines and the new virus variant for the next couple of weeks, so shares will likely continue to fluctuate on these headlines.” In FX, the dollar dropped alongside commodity-linked currencies while the yen and gold climbed and bitcoin surged as safe havens were bid. The yen swung to a gain after Moderna Inc.’s chief executive Stephane Bancel was quoted by the Financial Times saying existing vaccines may not be effective enough to tackle the omicron variant. Commodity-linked currencies including the Aussie, kiwi and Norwegian krone all declined, underperforming the dollar In rates, treasuries held gains after flight-to-quality rally extended during Asia session and European morning, when bunds and gilts also benefited from haven flows. Stocks fell after Moderna CEO predicted waning vaccine efficacy. Intermediates lead gains, with yields richer by nearly 6bp across 7-year sector; 10-year Treasuries are richer by 5.6bp at 1.443%, vs 2.5bp for German 10-year, 4.7bp for U.K. Long-end may draw support from potential for month-end buying; Bloomberg Treasury index rebalancing was projected to extend duration by 0.11yr as of Nov. 22. Expectations of month-end flows may support the market, and Fed Chair Powell is slated to testify to a Senate panel.       In commodities, crude futures are off their late-Asia lows but remain in the red. WTI trades close to $68.30, stalling near Friday’s lows; Brent is off over 2.5% near $71.50. Spot gold rises ~$11 near $1,796/oz. Base metals are mixed: LME zinc outperforms, rising as much as 1.6%.  To the day ahead now, and the main central bank highlight will be Fed Chair Powell’s appearance before the Senate Banking Committee, alongside Treasury Secretary Yellen. In addition, we’ll hear from Fed Vice Chair Clarida, the Fed’s Williams, the ECB’s Villeroy and de Cos, and the BoE’s Mann. On the data side, we’ll get the flash November CPI reading for the Euro Area today, as well as the readings from France and Italy. In addition, there’s data on German unemployment for November, Canadian GDP for Q3, whilst in the US there’s the Conference Board’s consumer confidence measure for November, the FHFA house price index for September, and the MNI Chicago PMI for November. Market Snapshot S&P 500 futures down 1.2% to 4,595.00 STOXX Europe 600 down 1.4% to 460.47 MXAP down 0.5% to 190.51 MXAPJ down 0.6% to 620.60 Nikkei down 1.6% to 27,821.76 Topix down 1.0% to 1,928.35 Hang Seng Index down 1.6% to 23,475.26 Shanghai Composite little changed at 3,563.89 Sensex down 0.2% to 57,122.74 Australia S&P/ASX 200 up 0.2% to 7,255.97 Kospi down 2.4% to 2,839.01 German 10Y yield little changed at -0.36% Euro up 0.6% to $1.1362 Brent Futures down 3.0% to $71.26/bbl Brent Futures down 3.0% to $71.26/bbl Gold spot up 0.7% to $1,796.41 U.S. Dollar Index down 0.65% to 95.72 Top Overnight News from Bloomberg Euro-area inflation surged to a record for the era of the single currency and exceeded all forecasts, adding to the European Central Bank’s challenge before a crucial meeting next month on the future of monetary stimulus. If the drop in government bond yields on Friday signaled how skittish markets were, fresh declines are leaving them looking no less nervous. One of Germany’s most prominent economists is urging the European Central Bank to be more transparent in outlining its exit from unprecedented monetary stimulus and argues that ruling out an end to negative interest rates next year may be a mistake. The Hong Kong dollar fell into the weak half of its trading band for the first time since December 2019 as the emergence of a new coronavirus variant hurt appetite for risk assets. A more detailed look at global markets courtesy of Newsquawk Asian equities traded mixed with early momentum seen following the rebound on Wall Street where risk assets recovered from Friday’s heavy selling pressure as liquidity conditions normalized post-Thanksgiving and after some of the Omicron fears abated given the mild nature in cases so far, while participants also digested a slew of data releases including better than expected Chinese Manufacturing PMI. However, markets were later spooked following comments from Moderna's CEO that existing vaccines will be much less effective against the Omicron variant. ASX 200 (+0.2%) was underpinned by early strength across its sectors aside from utilities and with gold miners also hampered by the recent lacklustre mood in the precious metal which failed to reclaim the USD 1800/oz level but remained in proximity for another attempt. In addition, disappointing Building Approvals and inline Net Exports Contribution data had little impact on sentiment ahead of tomorrow’s Q3 GDP release, although the index then faded most its gains after the comments from Moderna's CEO, while Nikkei 225 (-1.6%) was initially lifted by the recent rebound in USD/JPY but then slumped amid the broad risk aversion late in the session. Hang Seng (-1.6%) and Shanghai Comp. (Unch) were varied in which the mainland was kept afloat for most the session after a surprise expansion in Chinese Manufacturing PMI and a mild liquidity injection by the PBoC, with a central bank-backed publication also suggesting that recent open market operations demonstrates an ample liquidity goal, although Hong Kong underperformed on tech and property losses and with casino names pressured again as shares in junket operator Suncity slumped 37% on reopen from a trading halt in its first opportunity to react to the arrest of its Chairman. Finally, 10yr JGBs were initially contained following early momentum in stocks and somewhat inconclusive 2yr JGB auction which showed better results from the prior, albeit at just a marginal improvement, but then was underpinned on a haven bid after fears of the Omicron variant later resurfaced. Top Asian News China’s Biggest Crypto Exchange Picks Singapore as Asia Base SoftBank-Backed Snapdeal Targets $250 Million IPO in 2022 Omicron Reaches Nations From U.K. to Japan in Widening Spread Slump in China Gas Shows Spreading Impact of Property Slowdown Major European bourses are on the backfoot (Euro Stoxx 50 -1.5%; Stoxx 600 -1.5%) as COVID fears again take the spotlight on month-end. APAC markets were firmer for a large part of the overnight session, but thereafter the risk-off trigger was attributed to comments from Moderna's CEO suggesting that existing vaccines will be much less effective against the Omicron COVID strain. On this, some caveats worth keeping in mind - the commentary on the potential need for a vaccine does come from a vaccine maker, who could benefit from further global inoculation, whilst data on the new variant remains sparse. Meanwhile, WSJ reported Regeneron's and Eli Lilly's COVID antiviral cocktails had lost efficacy vs the Omicron variant - however, the extent to which will need to be subject to further testing. Furthermore, producers appear to be confident that they will be able to adjust their products to accommodate the new variant, albeit the timeline for mass production will not be immediate. Nonetheless, the sullied sentiment has persisted throughout the European morning and has also seeped into US equity futures: the cyclically bias RTY (-1.7%) lags the ES (-1.0%) and YM (-1.3%), whilst the tech-laden NQ (-0.5%) is cushioned by the slump in yields. Back to Europe, broad-based losses are seen across the majors. Sectors tilt defensive but to a lesser extent than seen at the European cash open. Travel & Leisure, Oil & Gas, and Retail all sit at the bottom of the bunch amid the potential implications of the new COVID variant. Tech benefits from the yield play, which subsequently weighs on the Banking sector. The retail sector is also weighed on by Spanish giant Inditex (-4.3%) following a CEO reshuffle. In terms of other movers, Glencore (-0.9%) is softer after Activist investor Bluebell Capital Partners called on the Co. to spin off its coal business and divest non-core assets. In a letter seen by the FT, Glencore was also asked to improve corporate governance. In terms of equity commentary, analysts at JPM suggest investors should take a more nuanced view on reopening as the bank expects post-COVID normalisation to gradually asset itself over the course of 2022. The bank highlights hawkish central bank policy shifts as the main risk to their outlook. Thus, the analysts see European equities outperforming the US, whilst China is seen outpacing EMs. JPM targets S&P 500 at 5,050 (closed at 4,655.27 yesterday) by the end of 2022 with EPS at USD 240 – marking a 14% increase in annual EPS. Top European News Omicron Reaches Nations From U.K. to Japan in Widening Spread ECB Bosses Lack Full Diplomatic Immunity, EU’s Top Court Says Adler Keeps Investors Waiting for Answers on Fraud Claims European Gas Prices Surge Above 100 Euros With Eyes on Russia In FX, the Greenback may well have been grounded amidst rebalancing flows on the final trading day of November, as bank models are flagging a net sell signal, albeit relatively weak aside from vs the Yen per Cit’s index, but renewed Omicron concerns stoked by Moderna’s CEO casting considerable doubt about the efficacy of current vaccines against the new SA strain have pushed the Buck back down in any case. Indeed, the index has now retreated further from its 2021 apex set less than a week ago and through 96.000 to 95.662, with only the Loonie and Swedish Krona underperforming within the basket, and the Antipodean Dollars plus Norwegian Crown in wider G10 circles. Looking at individual pairings, Usd/Jpy has reversed from the high 113.00 area and breached a Fib just below the round number on the way down to circa 112.68 for a marginal new m-t-d low, while Eur/Usd is back above 1.1350 having scaled a Fib at 1.1290 and both have left decent option expiries some distance behind in the process (1.6 bn at 113.80 and 1.3 bn between 1.1250-55 respectively). Elsewhere, Usd/Chf is eyeing 0.9175 irrespective of a slightly weaker than forecast Swiss KoF indicator and Cable has bounced firmly from the low 1.3300 zone towards 1.3375 awaiting commentary from BoE’s Mann. NZD/AUD/CAD - As noted above, the tables have turned for the Kiwi, Aussie and Loonie along with risk sentiment in general, and Nzd/Usd is now pivoting 0.6800 with little help from a deterioration in NBNZ business confidence or a decline in the activity outlook. Similarly, Aud/Usd has been undermined by much weaker than forecast building approvals and a smaller than anticipated current account surplus, but mostly keeping hold of the 0.7100 handle ahead of Q3 GDP and Usd/Cad has shot up from around 1.2730 to top 1.2800 at one stage in advance of Canadian growth data for the prior quarter and month of September as oil recoils (WTI to an even deeper trough only cents off Usd 67/brl). Back down under, 1 bn option expiry interest at 1.0470 in Aud/Nzd could well come into play given that the cross is currently hovering near the base of a 1.0483-39 range. SCANDI/EM - The aforementioned downturn in risk appetite after Monday’s brief revival has hit the Sek and Nok hard, but the latter is also bearing the brunt of Brent’s latest collapse to the brink of Usd 70/brl at worst, while also taking on board that the Norges Bank plans to refrain from foreign currency selling through December having stopped midway through this month. The Rub is also feeling the adverse effect of weaker crude prices and ongoing geopolitical angst to the extent that hawkish CBR rhetoric alluding to aggressive tightening next month is hardly keeping it propped, but the Cnh and Cny continue to defy the odds or gravity in wake of a surprise pop back above 50.0 in China’s official manufacturing PMI. Conversely, the Zar is struggling to contain losses sub-16.0000 vs the Usd on SA virus-related factors even though Gold is approaching Usd 1800/oz again, while the Try is striving to stay within sight of 13.0000 following a slender miss in Turkish Q3 y/y GDP. In commodities, WTI and Brent front month futures are once again under pressure amid the aforementioned COVID jitters threatening the demand side of the equation, albeit the market remains in a state of uncertainty given how little is known about the new variant ahead of the OPEC+ confab. It is still unclear at this point in time which route OPEC+ members will opt for, but seemingly the feasible options on the table are 1) a pause in output hikes, 2) a smaller output hike, 3) maintaining current output hikes. Energy journalists have suggested the group will likely be influenced by oil price action, but nonetheless, the findings of the JTC and JMMC will be closely watched for the group's updated forecasts against the backdrop of COVID and the recently coordinated SPR releases from net oil consumers – a move which the US pledged to repeat if needed. Elsewhere, Iranian nuclear talks were reportedly somewhat constructive – according to the Russian delegate – with working groups set to meet today and tomorrow regarding the sanctions on Iran. This sentiment, however, was not reciprocated by Western sources (cited by WSJ), which suggested there was no clarity yet on whether the teams were ready for serious negotiations and serious concessions. WTI Jan resides around session lows near USD 67.50/bbl (vs high USD 71.22/bbl), while Brent Feb dipped under USD 71/bbl (vs high USD 84.56/bb). Over to metals, spot gold remains underpinned in European trade by the cluster of DMA's under USD 1,800/oz – including the 100 (USD 1,792/oz), 200 (USD 1,791/oz) and 50 (1,790/oz). Turning to base metals, LME copper is modestly softer around the USD 9,500/t mark, whilst Dalian iron ore futures meanwhile rose over 6% overnight, with traders citing increasing Chinese demand. US Event Calendar 9am: 3Q House Price Purchase Index QoQ, prior 4.9% 9am: Sept. FHFA House Price Index MoM, est. 1.2%, prior 1.0% 9am: Sept. Case Shiller Composite-20 YoY, est. 19.30%, prior 19.66%; S&P/CS 20 City MoM SA, est. 1.20%, prior 1.17% 9:45am: Nov. MNI Chicago PMI, est. 67.0, prior 68.4 10am: Nov. Conf. Board Consumer Confidenc, est. 111.0, prior 113.8 10am: Nov. Conf. Board Present Situation, prior 147.4 10am: Nov. Conf. Board Expectations, prior 91.3 Central Banks 10am: Powell, Yellen Testify Before Senate Panel on CARES Act Relief 10:30am: Fed’s Williams gives remarks at NY Fed food- insecurity event 1pm: Fed’s Clarida Discusses Fed Independence DB's Jim Reid concludes the overnight wrap Just as we go to print markets are reacting negatively to an interview with the Moderna CEO in the FT that has just landed where he said that with regards to Omicron, “There is no world, I think, where (the effectiveness) is the same level... we had with Delta…… I think it’s going to be a material drop (efficacy). I just don’t know how much because we need to wait for the data. But all the scientists I’ve talked to . . . are like ‘this is not going to be good’.”” This is not really new news relative to the last 3-4 days given what we know about the new mutation but the market is picking up on the explicit comments. In response S&P futures have gone from slightly up to down just over -0.5% and Treasury yields immediately dipped -4bps to 1.46%. The Nikkei has erased gains and is down around -1% and the Hang Seng is c.-1.8%. This is breaking news so check your screens after you read this. In China the official November PMI data came in stronger than expected with the Manufacturing PMI at 50.1 (49.7 consensus vs 49.2 previous) and the non-manufacturing PMI at 52.3 (51.5 consensus vs 52.4 previous). The negative headlines above as we go to print followed a market recovery yesterday as investors hoped that the Omicron variant wouldn’t prove as bad as initially feared. In reality, the evidence is still incredibly limited on this question, and nothing from the Moderna CEO overnight changes that. However the more positive sentiment was also evident from the results of our flash poll in yesterday’s EMR where we had 1569 responses so very many thanks. The poll showed that just 10% thought it would still be the biggest topic in financial markets by the end of the year, with 30% instead thinking it’ll largely be forgotten about. The other 60% thought it would still be an issue but only of moderate importance. So if that’s correct and our respondents are a fair reflection of broader market sentiment, then it points to some big downside risks ahead if we get notable bad news on the variant. For the record I would have been with the majority with tendencies towards the largely forgotten about answer. So I will be as off-side as much as most of you on the variant downside risk scenario. When I did a similar poll on Evergrande 2 and a half months ago, only 8% thought it would be significantly impacting markets a month later with 78% in aggregate thinking limited mention/impact, and 15% thinking it would have no impact. So broadly similar responses and back then the 15% were most correct although the next 78% weren’t far off. In terms of the latest developments yesterday, we’re still waiting to find out some of the key pieces of information about this new strain, including how effective vaccines still are, and about the extent of any increased risk of transmission, hospitalisation and death. Nevertheless, countries around the world are continuing to ramp up their own responses as they await this information. President Biden laid out the US strategy for tackling Omicron in a public address yesterday, underscoring the variant was a cause for concern rather than panic. He noted travel bans from certain jurisdictions would remain in place to buy authorities time to evaluate the variant, but did not anticipate that further travel bans or domestic lockdowns would be implemented, instead urging citizens to get vaccinated or a booster shot. Over in Europe, Bloomberg reported that EU leaders were discussing whether to have a virtual summit on Friday about the issue, and Poland moved to toughen up their own domestic restrictions, with a 50% capacity limit on restaurants, hotels, gyms and cinemas. In Germany, Chancellor Merkel and Vice Chancellor Scholz will be meeting with state premiers today, whilst the UK government’s vaccination committee recommended that every adult be eligible for a booster shot, rather than just the over-40s at present. Boosters have done a tremendous job in dramatically reducing cases in the elder cohort in the UK in recent weeks so one by product of Omicron is that it may accelerate protection in a wider age group everywhere. Assuming vaccines have some impact on Omicron this could be a positive development, especially if symptoms are less bad. Markets recovered somewhat yesterday, with the S&P 500 gaining +1.32% to recover a large portion of Friday’s loss. The index was driven by mega-cap tech names, with the Nasdaq up +1.88% and small cap stocks underperforming, with the Russell 2000 down -0.18%, so the market wasn’t completely pricing out omicron risks by any means. Nevertheless, Covid-specific names performed how you would expect given the improved sentiment; stay-at-home trades that outperformed Friday fell, including Zoom (-0.56%), Peloton (-4.35%), and HelloFresh (-0.8%), while Moderna (+11.80%) was the biggest winner following the weekend news that a reformulated vaccine could be available in early 2022. Elsewhere, Twitter (-2.74%) initially gained after it was announced CEO and co-founder Jack Dorsey would be stepping down, but trended lower throughout the rest of the day. The broader moves put the index back in positive territory for the month as we hit November’s last trading day today. Europe saw its own bounceback too, with the STOXX 600 up +0.69%. Over in rates, the partial unwind of Friday’s moves was even smaller, with yields on 10yr Treasuries moving up +2.6bps to 1.50%, driven predominantly by real rates, as inflation breakevens were a touch narrower across the curve. One part of the curve that didn’t retrace Friday’s move was the short end, where markets continued to push Fed rate hikes back ever so slightly, with the first full hike now being priced for September (though contracts as early as May still price some meaningful probability of Fed hikes). We may see some further movements today as well, with Fed Chair Powell set to appear before the Senate Banking Committee at 15:00 London time, where he may well be asked about whether the Fed plans to accelerate the tapering of their asset purchases although it’s hard to believe he’ll go too far with any guidance with the Omicron uncertainty. The Chair’s brief planned testimony was published on the Fed’s website last night. It struck a slightly more hawkish tone on inflation, noting that the Fed’s forecast was for elevated inflation to persist well into next year and recognition that high inflation imposes burdens on those least able to handle them. On omicron, the testimony predictably stated it posed risks that could slow the economy’s progress, but tellingly on the inflation front, it could intensify supply chain disruptions. The real fireworks will almost certainly come in the question and answer portion of the testimony. The bond moves were more muted in Europe though, with yields on 10yr bunds (+2.0bps), OATs (+1.0bps) and BTPs (+0.4bps) only seeing a modest increase. Crude oil prices also didn’t bounce back with as much rigor as equities. Brent gained +0.99% while WTI futures increased +2.64%. They are back down -1 to -1.5% this morning. Elsewhere in DC, Senator Joe Manchin noted that Democrats could raise the debt ceiling on their own through the reconciliation process, but indicated a preference for the increase not to be included in the build back better bill, for which his support still seems lukewarm. We’re approaching crucial deadlines on the debt ceiling and financing the federal government, so these headlines should become more commonplace over the coming days. There were some further developments on the inflation front yesterday as Germany reported that inflation had risen to +6.0% in November (vs. +5.5% expected) on the EU-harmonised measure, and up from +4.6% in October. The German national measure also rose to +5.2% (vs. +5.0% expected), which was the highest since 1992. Speaking of Germany, Bloomberg reported that the shortlist for the Bundesbank presidency had been narrowed down to 4 candidates, which included Isabel Schnabel of the ECB’s Executive Board, and Joachim Nagel, who’s currently the Deputy Head of the Banking Department at the Bank for International Settlements. Today we’ll likely get some further headlines on inflation as the flash estimate for the entire Euro Area comes out, as well as the numbers for France and Italy. There wasn’t much in the way of other data yesterday, though UK mortgage approvals fell to 67.2k in October (vs. 70.0k expected), which is their lowest level since June 2020. Separately, US pending home sales were up +7.5% in October (vs. +1.0% expected), whilst the Dallas Fed’s manufacturing activity index for November unexpectedly fell to 11.8 (vs. 15.0 expected). Finally, the European Commission’s economic sentiment indicator for the Euro Area dipped to 117.5 in November as expected, its weakest level in 6 months. To the day ahead now, and the main central bank highlight will be Fed Chair Powell’s appearance before the Senate Banking Committee, alongside Treasury Secretary Yellen. In addition, we’ll hear from Fed Vice Chair Clarida, the Fed’s Williams, the ECB’s Villeroy and de Cos, and the BoE’s Mann. On the data side, we’ll get the flash November CPI reading for the Euro Area today, as well as the readings from France and Italy. In addition, there’s data on German unemployment for November, Canadian GDP for Q3, whilst in the US there’s the Conference Board’s consumer confidence measure for November, the FHFA house price index for September, and the MNI Chicago PMI for November. Tyler Durden Tue, 11/30/2021 - 07:50.....»»

Category: blogSource: zerohedgeNov 30th, 2021

Genetron Health Reports Third Quarter 2021 Unaudited Financial Results

BEIJING, Nov. 30, 2021 (GLOBE NEWSWIRE) -- Genetron Holdings Limited (("Genetron Health" or the "Company", NASDAQ:GTH), a leading precision oncology platform company in China that specializes in offering molecular profiling tests, early cancer screening products and companion diagnostics development, today reported its unaudited preliminary financial results for the third quarter ended September 30, 2021. Third Quarter and Recent Highlights Financials: Recorded total revenue of RMB 152.5 million (US $23.7 million) for the third quarter of 2021, representing a 36.2% increase over the same period of 2020 LDT revenue was RMB 93.0 million (US $14.4 million) in the third quarter of 2021, representing 30.2% growth compared to the prior year period IVD revenue was RMB 51.3 million (US $8.0 million) in the third quarter of 2021, representing 70.5% growth compared to the prior year period Achieved gross margin of 69.0% for the third quarter 2021 compared to 62.2% in the same period of 2020, primarily driven by improvements in both the LDT and IVD business lines Early screening franchise update: Genetron has broadened its registrational strategy for its early screening program for hepatocellular carcinoma (HCC). The Company has initiated enrollment for a PCR-based trial in November, with plans to enroll the NGS-based trial in the next few months. Genetron anticipates potential NMPA approvals for both assays in 2023 Developed a multi-omics blood-based CRC early screening assay, which was trained in a retrospective cohort of 100 cases and 100 controls, and validated in an independent cohort of the same size. The assay achieved >91% sensitivity with the specificity of 95%. Full details are planned to be released through a publication in 2022 MRD franchise update: Formed a co-development agreement with AstraZeneca R&D China for personalized MRD tests for solid tumors in China. Our partner plans to incorporate the co-developed tests for China-specific studies. This is an exclusive, multi-year collaboration (see detailed release here) Entered into an exclusive agreement with Fosun Pharma to commercialize Seq-MRD® in China, marking the Company's first product launch for hematologic cancer and MRD detection Publications: Early Screening: Clinical results and technology findings of Genetron Health's early liver cancer screening product for hepatocellular carcinoma (HCC), HCCscreen™, were included in an expert consensus and was published in the Chinese Journal of Hepatology, an influential publication among liver physicians in China MRD: Journal of Hematology & Oncology published an analysis of a personalized MRD assay developed based on Mutation Capsule technology. The assay has shown excellent sensitivity to detect 0.001% tumor DNA from peritoneal lavage fluid samples for precise prediction of peritoneal dissemination in gastric cancer patients Bioinformatics: Briefings in Bioinformatics published enhanced variant caller performance data that was achieved by Genetron Health's bioinformatics team Others: Established a strategic partnership with NeoGenomics (NASDAQ:NEO) to drive global oncology drug R&D as well as with IMPACT Therapeutics to drive development of a synthetic lethal product pipeline Obtained CE Mark for Onco PanScan™, the Company's large panel product that covers over 800 genes "Despite COVID's impact on our third quarter financial results, we achieved strong year-over-year revenue growth of 36.2%, marked by more than 70% increase in our in-hospital (IVD) sales along with significant gross margin improvement. Operationally, we've had many positive updates, which included the initiation of our first registrational trial for HCC early screening, new MRD partnerships, and recognition in multiple influential publications," remarked Mr. Sizhen Wang, co-founder and CEO of Genetron Health. "Based on the continued enforcement of "zero COVID" strategy in China, we anticipate a significantly tougher operating environment in the fourth quarter. Despite this short-term challenge, we remain laser focused on driving our clinically differentiated pipeline of comprehensive precision oncology diagnostics. Our long-term outlook remains unchanged as we continue to execute on our strategies, and we anticipate multiple data and trial updates from our key programs in the coming months. In addition, the macro environment remains favorable for Genetron, thanks to continued policy tailwinds in China that aim to improve healthcare options for local citizens." Third Quarter 2021 Unaudited Preliminary Financial ResultsTotal revenue for the third quarter of 2021 increased by 36.2% to RMB 152.5 million (US $23.7 million) from RMB 112.0 million in the same period of 2020. Diagnosis and monitoring revenue increased by 42.2% to RMB 144.3 million (US $22.4 million) in the third quarter of 2021 from RMB 101.5 million in the same period of 2020. The increase was primarily driven by the growth in the revenue generated from the sale of both LDT & IVD products. Revenue generated from the provision of LDT services increased by 30.2% to RMB 93.0 million (US $14.4 million) during the third quarter of 2021 from RMB 71.4 million in the same period of 2020, primarily driven by increased sales of HCC early screening tests. LDT diagnostic tests sold in the third quarter 2021 totaled approximately 5,900 units.   Revenue generated from sales of IVD products increased by 70.5% to RMB 51.3million (US $8.0 million) in the third quarter of 2021 from RMB 30.1 million in the third quarter of 2020. The increase was driven by sales of the Genetron S5 instrument and 8-gene Lung Cancer Assay (Tissue). Contracted in-hospital partners(as of the end of the period indicated)                 3Q20 4Q20 1Q21 2Q21 3Q21   IVD In-hospital partners 20 22 23 28 29                   3Q20 4Q20 1Q21 2Q21 3Q21   Total in-hospital partners(1) 38 40 42 50 54   Note:(1) The number of total in-hospital partners include both sales of LDT services and IVD products.       Revenue generated from development services decreased by 21.4% to RMB 8.2 million (US $1.3 million) in the third quarter of 2021, from RMB 10.4 million in the same period of 2020. The decrease was mainly due to the decline in sequencing services, as the Company continued to focus on higher margin biopharmaceutical services. Biopharmaceutical revenue continued to grow compared to the same period of 2020. Gross profit increased by 51.1% to RMB 105.2 million (US $16.3 million) in the third quarter 2021 from RMB 69.6 million in the same period of 2020. Gross margin improved to 69.0% for the third quarter of 2021, compared to 62.2% in the same period of 2020, primarily due to higher gross margins for both the LDT and IVD business lines. Selling expenses increased by 56.3% to RMB 94.6 million (US $14.7 million) in the third quarter of 2021 from RMB 60.6 million in the same period of 2020. Selling expenses as a percentage of revenues was 62.0% in the third quarter of 2021, compared to 54.1% in the same period of 2020. The increase was primarily driven by increased headcount to expand Genetron's core business as well as early screening sales teams. Administrative expenses increased by 94.1% to RMB 63.0 million (US $9.8 million) in the third quarter of 2021 from RMB 32.4 million in the same period of 2020. Administrative expenses as a percentage of revenues increased to 41.3% in the third quarter of 2021 from 29.0% in the third quarter of 2020. The increase was mainly driven by higher headcount, professional fees, IT expenses, and share-based compensation. Research and development expenses increased by 61.7% to RMB 62.4 million (US $9.7 million) in the third quarter of 2021 from RMB 38.6 million in the same period of 2020. Research and development expenses as a percentage of revenues increased to 40.9% in the third quarter of 2021 from 34.4% in the same period of 2020. The increases were driven by higher R&D headcount and related expenses, as well as continued innovation efforts, including product development and clinical trial activities. Loss for the period was RMB 130.1 million (US $20.2 million) for the three months ended September 30, 2021, compared to RMB 48.0 million for the three months ended September 30, 2020. Non-IFRS loss for the period, defined as loss for the period excluding share-based compensation expenses, fair value change and other loss of financial instruments with preferred rights, was RMB109.9 million (US $17.1 million) for the three months ended September 30, 2021, compared to RMB 43.7 million for the three months ended September 30, 2020. Please refer to the section in this press release titled "Non-IFRS Financial Measures" for details. Basic loss per share attributable to ordinary shareholders of the Company was RMB 0.28 (US $0.04) for the third quarter of 2021, compared with a basic loss per share attributable to ordinary shareholders of the Company of RMB 0.11 for the same period of 2020. Excluding share-based compensation expenses, fair value change of financial instruments with preferred rights and other loss of financial instruments with preferred rights, non-IFRS basic loss per share attributable to ordinary shareholders of the Company was RMB 0.24 (US $0.04) for the third quarter of 2021, compared with non-IFRS basic loss per share attributable to ordinary shareholders of the Company of RMB 0.10 for the same period of 2020. Diluted loss per share attributable to ordinary shareholders of the Company is equivalent to basic loss per share attributable to ordinary shareholders of the Company. Each ADS represents of five ordinary shares, par value US $0.00002 per share. Please refer to the section in this press release titled "Non-IFRS Financial Measures" for details. As of September 30, 2021, cash and cash equivalents, restricted cash and current financial assets at fair value through profit or loss were RMB 1,005.3 million (US $156.0 million). 2021 Financial GuidanceBased on the continued enforcement of the "zero COVID" strategy in China and the resulting sustained restrictions across Genetron's major markets, the Company is revising its full year 2021 revenue guidance to be around RMB 530 million, representing approximately 24.9% growth over the Company's full year 2020 revenue. Conference CallA conference call and webcast to discuss the results will be held at 8:30 a.m. U.S. Eastern Time on November 30, 2021 (or at 9:30 p.m. Beijing Time on November 30, 2021). Interested parties may listen to the conference call by dialing numbers below: United States: +1-332-208-9468 China Domestic: 400-820-5286 Hong Kong: +852-3018-6771 International:  +65-6713-5590 Conference ID: 5848053 Participants are encouraged to dial into the call at least 15 minutes in advance due to high call volumes. A replay will be accessible through December 7, 2021 by dialing the following numbers: United States: +1-855-452-5696 International: +61-2-8199-0299 Conference ID: 5848053 A simultaneous webcast of the conference call will be available on the "News and Presentations" page of the Investors section of the Company's website. A replay of the webcast will be available for 30 days following the event. For more information, please visit Exchange Rate Information All translations made in the financial statements or elsewhere in this press release made from RMB into United States dollars ("US$") are solely for convenience and calculated at the rate of US$1.00=RMB 6.4434, representing the exchange rate as of September 30, 2021, set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate, on September 30, 2021. Non-IFRS Financial Measures The Company uses non-IFRS loss and non-IFRS loss per share attributable to ordinary shareholders of the Company for the year/period, which are non-IFRS financial measures, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that non-IFRS loss and non-IFRS loss per share attributable to ordinary shareholders of the Company help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that the Company includes in its loss for the year/period. The Company believes that non-IFRS loss and non-IFRS loss per share attributable to ordinary shareholders of the Company for the year/period provide useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. Non-IFRS loss and non-IFRS loss per share attributable to ordinary shareholders of the Company for the year/period should not be considered in isolation or construed as an alternative to operating profit, loss for the year/period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS loss and non-IFRS loss per share attributable to ordinary shareholders of the Company for the year/period and the reconciliation to its most directly comparable IFRS measures. Non-IFRS loss and non-IFRS loss per share attributable to ordinary shareholders of the Company for the year/period presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Non-IFRS loss and non-IFRS loss per share attributable to ordinary shareholders of the Company for the year/period represent loss for the year/period excluding share-based compensation expenses, fair value change of financial instruments with preferred rights and other loss of financial instruments with preferred rights (if applicable). Please see the "Unaudited Non-IFRS Financial Measures" included in this press release for a full reconciliation of non-IFRS loss for the year/period to loss for the year/period and non-IFRS loss per share attributable to ordinary shareholders of the Company for the year/period to loss per share attributable to ordinary shareholders of the Company for the year/period. About Genetron Holdings LimitedGenetron Holdings Limited ("Genetron Health" or the "Company") (NASDAQ:GTH) is a leading precision oncology platform company in China that specializes in cancer molecular profiling and harnesses advanced technologies in molecular biology and data science to transform cancer treatment. The Company has developed a comprehensive oncology portfolio that covers the entire spectrum of cancer management, addressing needs and challenges from early screening, diagnosis and treatment recommendations, as well as continuous disease monitoring and care. Genetron Health also partners with global biopharmaceutical companies and offers customized services and products. For more information, please visit Safe Harbor Statement This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. Investor Relations Contact US: Hoki Luk Head of Investor Relations Email: Phone: +1 (408) 891-9255 Philip Trip TaylorVice President | Gilmartin Media Relations ContactYanrong ZhaoGenetron Edmond Mobile: +86 GENETRON HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS   For the three months ended   For the nine months ended       September 30, 2020 September 30, 2021   September 30, 2020 September 30, 2021   RMB'000 RMB'000 US$'000   RMB'000 RMB'000 US$'000 Revenue 111,963     152,541     23,674     290,541     385,087     59,765   Cost of revenue (42,331 )   (47,306 )   (7,342 )   (114,448 )   (130,839 )   (20,306 )                 Gross profit 69,632     105,235     16,332     176,093     254,248     39,459                   Selling expenses (60,558 )   (94,625 )   (14,686 )   (175,000 )   (242,812 )   (37,684 ) Administrative expenses (32,440 )   (62,981 )   (9,774 )   (81,969 )   (162,161 )   (25,167 ) Research and development expenses (38,556 )   (62,364 )   (9,679 )   (96,030 )   (168,500 )   (26,151 ) Net impairment losses on financial and contract assets (1,107 )   (10,437 )   (1,620 )   (2,097 )   (23,741 )   (3,684 ) Other income/(loss) - net 3,819     334     52     (513 )   8,945     1,388                   Operating expenses (128,842 )   (230,073 )   (35,707 )   (355,609 )   (588,269 )   (91,298 )                 Operating loss (59,210 )   (124,838 ).....»»

Category: earningsSource: benzingaNov 30th, 2021

Black Friday on Global Bourses: 5 Picks to Protect Portfolio

We have selected five large-cap (market capital > $30 billion) technology stocks to invest. These are: GOOGL, VEEV, ANSS, MTD and CDNS. Nov 26 was a black Friday in reality across the global financial markets. In the United States, Black Friday is associated with massive consumer spending. However, on Nov 26, market participants were busy liquidating their long positions worldwide. This was courtesy of the resurgence of a new variant of coronavirus — B.1.1.529 — in South Africa. The World Health Organization (WHO) named it “omicron” and warned that it could be more transmissible than the previous variants.It seems that volatility may persist in early December. At this stage, it will be prudent to invest in large-cap technology stocks with a favorable Zacks Rank. Here are five of them — Alphabet Inc. GOOGL, Cadence Design Systems Inc. CDNS, Veeva Systems Inc. VEEV, Mettler-Toledo International Inc. MTD and ANSYS Inc. ANSS.   Panic Selling on Black FridayVery few cases with the omicron variant have been detected so far and medical scientists or virologists are clueless regarding the spread of the infection or the physical destructive power of the new variant of COVID-19.Currently, the medical science space is divided with contradictory opinions regarding omicron owing to lack of data. However, several countries including the United States have taken preventive measures like travel restrictions, wearing masks and giving more emphasis on vaccination.However, markets always react more on sentiments, tensions and panic rather than factual reality. Consequently, on Nov 26, the Dow recorded its worst single-day drop in 2021 and the biggest Black Friday selloff since 1931. The S&P 500 and the Nasdaq Composite posted the biggest Black Friday decline in history. Bourses including European Union, the U.K., Japan, Hong Kong, South Korea and emerging markets like Australia, India and Singapore tumbled 2.5% to 4%.  As investors shifted their funds from risky-asset like equities to safe-haven government bonds, the yield on the benchmark 10-Year U.S. Treasury Note plunged 16.2 basis points to 1.482%. Fearing lack of demand, the prices of the U.S. benchmark WTI crude oil and global benchmark Brent crude oil slid 13% and 11.5%, respectively.Near-Term PositivesMedical science is well advanced now to combat the mutating strings of coronavirus than it was a year ago. A section of medical experts has also said that omicron may not be as infectious as the Delta. The spread of omicron may create a short-term hurdle to global economic recovery but a pandemic-era lockdown is highly unlikely.Moreover, if omicron poses a genuine threat to U.S. economic recovery, the Fed may delay its bond-buy tapering process and the benchmark interest rate hike, and may continue its ultra-dovish monetary policies. In fact, over the past two months, an expected change in Fed’s monetary stance due to skyrocketing inflation was the primary source of volatility on Wall Street.Finally, fundamentals of the U.S. economy remain robust. Both consumer spending and business spending remain strong despite mounting inflation and supply-chain disruptions. Both manufacturing and services PMIs stayed elevated. The struggling labor market is showing a systematic recovery. The last reported weekly jobless claims data for the week ended Nov 20, came in at the lowest level since Nov 15, 1969.Our Top PicksAt this stage, analyzing the pros and cons of the resurgence of COVID-19 and panic selling in stock markets, investment in technology stocks will be a good strategy. The technology sector has a secular uptrend potential irrespective of any pandemic-led market downturn.We have selected five large-cap (market capital > $30 billion) technology stocks as these companies have well-established business models. These stocks have sloid growth potential for the rest of 2021 and have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The chart below shows the price performance of our five picks in the past month.Image Source: Zacks Investment ResearchAlphabet Inc. has been strongly emphasizing AI techniques and the home automation space, which should aid business growth over the long term. Solid momentum across search, advertising, cloud and YouTube businesses aided the results of Alphabet. Further, the growing proliferation of consumers’ online activities and rising advertiser spending remained as tailwinds.Alphabet's robust cloud division continues to be the key catalyst. Expanding data centers will continue to bolster its presence in the cloud space. Further, major updates in its search segment are enhancing the search results. Moreover, GOOGL’s mobile search is constantly gaining traction.Zacks Rank #1 Alphabet has an expected earnings growth rate of 84.8% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.4% over the last 7 days.Cadence Design Systems Inc. offers products and tools that help customers to design electronic products. Through the System Design Enablement strategy, CDNS offers software, hardware, services and reusable IC design blocks to electronic systems and semiconductor customers.Cadence’s performance is being driven by strength across segments like digital & signoff solutions and functional verification suite. CDNS is also gaining from higher investments in emerging trends like IoT and autonomous vehicle sub-systems along with strength in the semiconductor end-market. Frequent product launches are expected to help the company sustain top-line growth.Zacks Rank #2 Cadence Design Systems has an expected earnings growth rate of 16.1% for the current year. The Zacks Consensus Estimate for current-year earnings improved 2.5% over the last 30 days.Mettler-Toledo International Inc. is the world's largest manufacturer and marketer of weighing instruments for use in laboratory, industrial and food retailing applications. MTD focuses on the high value-added segments of the weighing instruments market by providing solutions for specific applications.Mettler-Toledo is also a leading provider of analytical instruments for use in life science, reaction engineering and real-time analytic systems used in drug and chemical compound development, and process analytics instruments used for in-line measurement in production processes. MTD’s portfolio strength, cost-cutting efforts, robust sales, marketing strategies, and margin and productivity initiatives are expected to continue aiding its performance.Zacks Rank #2 Mettler-Toledo has an expected earnings growth rate of 29.9% for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.7% over the last 30 days.Veeva Systems Inc. offers cloud-based software applications and data solutions for the life sciences industry. Strength in Veeva Systems’ data business and Veeva OpenData raise optimism. The steady adoption of Veeva Systems’ products is also encouraging. Revenue uptick in Veeva Commercial Cloud with 21 new Veeva CRM customer wins and good traction with Veeva CRM add-ons look impressive.The expansion of both margins bodes well for VEEV. Veeva System’s focus on cloud-based software and a strong product suite buoy optimism. A strong liquidity position is an added plus for VEEV.  Zacks Rank #2 Veeva System has an expected earnings growth rate of 21.4% for the current year (ending January 2022). The Zacks Consensus Estimate for current-year earnings improved 0.3% over the last 60 days.ANSYS Inc. develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia. ANSYS is also gaining from the robust adoption of its engineering simulation software in 3D printing and additive manufacturing applications.Solid recurring revenue growth and improving business conditions at small- and medium-sized customers acted as a tailwind. The sound acquisition strategy of ANSS bodes well for the long haul.Zacks Rank #2 ANSS has an expected earnings growth rate of 7.6% for the current year. The Zacks Consensus Estimate for current-year earnings improved 2.4% over the last 30 days. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. 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 kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately 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 Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report MettlerToledo International, Inc. (MTD): Free Stock Analysis Report ANSYS, Inc. (ANSS): Free Stock Analysis Report Veeva Systems Inc. (VEEV): Free Stock Analysis Report Alphabet Inc. 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Category: topSource: zacksNov 29th, 2021