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Stand Out Online With .realtor™ and .realestate

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Category: realestateSource: rismediaMay 19th, 2022

Show Your Leadership In the Real Estate Sector

NAR PULSE—Rise to the top in real estate! Take advantage of .realestate web addresses to help your brokerage expand into the real estate vertical, build market ownership, and dominate geographically. PLUS, every .realestate web address purchase comes with a FREE Professional Website. Get yours today at www.get.realestate. November Is NAR’s Designation Awareness Month Encourage your […] The post Show Your Leadership In the Real Estate Sector appeared first on RISMedia. NAR PULSE—Rise to the top in real estate! Take advantage of .realestate web addresses to help your brokerage expand into the real estate vertical, build market ownership, and dominate geographically. PLUS, every .realestate web address purchase comes with a FREE Professional Website. Get yours today at www.get.realestate. November Is NAR’s Designation Awareness Month Encourage your agents to take advantage of an array of online courses offered by NAR and its affiliates to sharpen their skills and stand out from the competition. Continuing Education credits available in many states. Learn more about special discounts being offered during the month of November. No-Cost Agent Training for Brokers from RPR® Learning to use RPR® (Realtors Property Resource®) isn’t just for agents! With RPR®’s Broker Tools, brokerages can sign up and receive access to an array of business-building tools and features. The post Show Your Leadership In the Real Estate Sector appeared first on RISMedia......»»

Category: realestateSource: rismediaNov 17th, 2021

Fever Pace of Home Price Gains Slowed in August

The surge in single-family home prices held firm in August, but experts indicate that signs of the feverish rate is slowing. The most recent S&P CoreLogic/Case-Shiller Indices showed double-digit price gains in August, marking the fifth consecutive month of the activity. Home prices climbed by 19.8% in August, maintaining the same rate as the month […] The post Fever Pace of Home Price Gains Slowed in August appeared first on RISMedia. The surge in single-family home prices held firm in August, but experts indicate that signs of the feverish rate is slowing. The most recent S&P CoreLogic/Case-Shiller Indices showed double-digit price gains in August, marking the fifth consecutive month of the activity. Home prices climbed by 19.8% in August, maintaining the same rate as the month before.  All 20 cities saw monthly price increases, but at a lower rate from the month prior. The 10-City Composite recorded an 18.6% gain—down from 19.2% in July. The 20-City Composite showed similar behavior with a 19.7% price gain compared with July’s 20%. Despite the moderation of prices, experts note that each city and composite indices stand at their all-time high.  Tampa found its way into the top spots on the price gain list—usurping Seattle in the process. Phoenix, San Diego and Tampa recorded 33.3%, 26.2% and 25.9% gains, respectively. The complete data for the 20 markets measured by S&P: Atlanta, Ga. August/July: 1.9% Year-Over-Year: 20.2%    Boston, Mass. August/July: 0.5% Year-Over-Year: 17.7% Charlotte, N.C. August/July: 1.5% Year-Over-Year: 21.7% Chicago, Ill. August/July: 1.0% Year-Over-Year: 12.7% Cleveland, Ohio August/July: 0.8% Year-Over-Year: 15.5% Dallas, Texas August/July: 1.8% Year-Over-Year: 24.6% Denver, Colo. August/July: 0.9% Year-Over-Year: 21.5%  Detroit, Mich. August/July: 0.7% Year-Over-Year: 15.7% Las Vegas, Nev. August/July: 2.2% Year-Over-Year: 23.8% Los Angeles, Calif. August/July: 0.9% Year-Over-Year: 18.4% Miami, Fla. August/July: 2.3% Year-Over-Year: 23.8% Minneapolis, Minn. August/July: 0.3% Year-Over-Year: 14.0% New York, N.Y. August/July: 0.5% Year-Over-Year: 17.2%  Phoenix, Ariz. August/July: 2.2% Year-Over-Year: 33.3% Portland, Ore. August/July: 0.8% Year-Over-Year: 19.2% San Diego, Calif. August/July: 0.5% Year-Over-Year: 26.2% San Francisco, Calif. August/July: 0.4% Year-Over-Year: 21.2%  Seattle, Wash. August/July: 0.2% Year-Over-Year: 24.3%  Tampa, Fla. August/July: 2.5% Year-Over-Year: 25.9%  Washington, D.C. August/July: 0.6% Year-Over-Year: 15.1% What the Industry Is Saying: “The U.S. housing market showed continuing strength in August 2021. Every one of our city and composite indices stands at its all-time high, and year-over-year price growth continues to be very strong, although moderating somewhat from last month’s levels.  “We have previously suggested that the strength in the U.S. housing market is being driven in part by a reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred anyway over the next several years or reflects a secular change in locational preferences. August’s data are consistent with either explanation. August data also suggest that the growth in housing prices, while still very strong, may be beginning to decelerate.” — Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices “The August S&P Case-Shiller Index reflected the nuanced changes in the housing market as it moved into fall. On the one hand, homebuyers continued to face a competitive market in which home prices increased at a double-digit pace, up 19.8% from one year ago nationwide. On the other hand, the rate of price growth steadied at the national level and slowed somewhat from the record gains seen in July in the 10- and 20-city indices as rising mortgage rates and home prices demand larger shares of homebuyers’ paychecks and cut into their ability to continue to meet or exceed asking prices. “Going forward, the conditions buyers face are primarily dependent on two things: mortgage rates and housing supply. The average mortgage rate for a 30-year fixed-rate loan rose ten basis points from 2.77% to 2.87% in August and has breached 3.0% with no sign of slowing since then, limiting some buyers’ ability to push home prices higher.  “Further, the availability of homes for sale remains low as new construction climbs out of a decade-long deficit and the inventory of existing home listings continues to fall short from 2020 levels. Recently, we’ve seen trends in new sellers lag behind prior-year levels, but the deficit is shrinking. With existing owners hesitating to jump into a housing market tipped so far in sellers’ favor, more homes for sale are likely just what buyers and, paradoxically, sellers need.”   — Danielle Hale, Chief Economist, realtor.com®   Jordan Grice is RISMedia’s associate online editor. Email him your real estate news to jgrice@rismedia.com. The post Fever Pace of Home Price Gains Slowed in August appeared first on RISMedia......»»

Category: realestateSource: rismediaOct 26th, 2021

10-Plus Video Marketing Tips for Real Estate Agents

The internet and smartphones have made video content widespread and accessible. To engage with your clients, you need to shoot a lot of video. Let’s talk about connecting with your audience, some video ideas and how to make your videos stand out. Find Your Audience You want your video to be seen by people interested […] The post 10-Plus Video Marketing Tips for Real Estate Agents appeared first on RISMedia. The internet and smartphones have made video content widespread and accessible. To engage with your clients, you need to shoot a lot of video. Let’s talk about connecting with your audience, some video ideas and how to make your videos stand out. Find Your Audience You want your video to be seen by people interested in buying or selling a house. Platforms like Facebook, Instagram and YouTube have a lot of users. Make your videos engaging by putting interesting images and hooks first. Many users stop watching after a few seconds if they’re not interested. For Facebook and Instagram, design your video to be viewed without audio. Most users do not automatically use audio on these platforms. Make use of Facebook’s auto-caption feature because research has found users engage more with videos with captions. For YouTube, create longer videos with wording optimized for searches. For instance, many people search for informational videos with the word “beginner” in the title. Use specific hashtags to direct people to your content. You don’t want to just tag your posts with “#realestate.” Make it more specific by including your city’s name. While more specific hashtags narrow down users, the users who find your content are more likely to engage with it. Real Estate Video Ideas Good videos start with good ideas. These ideas can be approached from different angles and repurposed to get the most out of them. Here are some great ideas to get you started making videos. 1. Introduction Video: Introduce yourself to your audience 2. FAQ Video: Answer frequently asked real estate questions 3. Neighborhood Tours: Bring potential clients on a tour of a neighborhood you know well 4. Home/Property Tours: Showcase a property for sale 5. Ask Me Anything (AMA) Videos: Go live on Facebook, YouTube or Instagram and answer any of your followers’ questions 6. Day in the Life: Create a video showing the amount of work you put in to earn your commission 7. Testimonials: Compile videos from happy clients talking about their experience with you Tips to Make Your Videos Stand Out With the endless amount of content online, standing out is very important. Follow these tips to get extra followers and keep them engaged. Make a Plan Draw up a content calendar a month ahead with a plan for content. Script the content, rehearse your videos, edit them and release them. Get The Right Equipment (And Learn How to Use It) To make your videos really stand out, you’ll need equipment, software and the know-how to use it. Here’s what you can consider investing in: – Tripod (with smartphone attachment) – Ring light – Editing software – Lighting kit – Microphone – DSLR Camera The costs can add up and there’s a definite learning curve. If you have someone in your network with video experience, think about enlisting their help. Show Your Personality Use these videos as an opportunity to show who you are, showcase your real estate knowledge and build trust. Be personable and engage with them while being professional. Show clients why your content matters through the value of your information, your storytelling and your unique perspective and humor. To get connected, visit RocketPro.com/RealEstate. The post 10-Plus Video Marketing Tips for Real Estate Agents appeared first on RISMedia......»»

Category: realestateSource: rismediaSep 22nd, 2021

The 5 Best Credit Cards For Seniors And Retirees In 2022

Choosing the right credit card as a senior or retiree can sometimes be tricky. There are many options available, and it’s essential to find one that offers the best benefits for your current needs. Unfortunately, those needs and our preferences change as we age, so the card that was our ideal fit in our twenties […] Choosing the right credit card as a senior or retiree can sometimes be tricky. There are many options available, and it’s essential to find one that offers the best benefits for your current needs. Unfortunately, those needs and our preferences change as we age, so the card that was our ideal fit in our twenties or thirties is probably not the best fit for us today. This article will highlight five of the best credit cards for seniors and retirees in 2022. I’ll also explain why these cards stand out from the competition. So whether you’re looking for a new card to add to your stack or just starting to plan for retirement, read on for my top picks. .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Ray Dalio Series in PDF Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more #1 The best travel credit card for retirement: The Chase Sapphire Preferred Card If we were to do a poll asking all of America’s retirees or soon-to-be retirees what the top ten items on their bucket list are, traveling around the world or, at the very least, visiting another country is almost sure to be high on the list. But unfortunately, many people either don’t have the money or the time to travel as much as they would like when they’re young, so they always leave fulfilling that dream for their golden years. If that is your case and you plan to travel frequently in retirement, perhaps to visit your children or grandchildren or simply to be a tourist in a faraway land, then having a good travel rewards credit card is a must. Travel rewards cards are great for people who love to travel, obviously. But they’re also great for retirees and seniors who might not be able to travel as often as they’d like. Why? Because most travel cards offer valuable perks and benefits that can save you a ton of money on your travels if used correctly. Key perks of the Chase Sapphire Preferred Card The Chase Sapphire Preferred Card is one of the best travel cards out there, and it’s an ideal choice for seniors and retirees who love to explore the world. The first significant perk is a whopping 60,000 points welcome bonus after spending $4,000 on purchases from account opening in the first three months. This bonus alone is worth anywhere from $600 to $750, depending on how you redeem them. After the first year, you’ll receive an annual $50 statement credit for hotel stays as long as you booked them through Chase Ultimate Rewards. After you add travel insurance (trip cancellation/interruption, baggage delay, and trip delay insurance, as well as auto rental collision damage waiver and travel and emergency assistance services) and the other benefits with partners like Lyft, DoorDash, and Gopuff, you’re looking at close to $900 worth of benefits. What makes this a great travel card is that: You can redeem your points for travel at a valuation of 1.25 cents per point through Chase Ultimate Rewards. You can transfer points at a 1:1 rate to many popular airline loyalty programs, where you can get even more benefits. The card doesn’t add foreign transaction fees. Additionally, the card’s rewards on travel purchases are also great. You get 5x points on travel booked through Chase Ultimate Rewards (saving you close to 5% off the purchase price), 3x on dining, online grocery purchases, and select streaming services, and two points on all other travel purchases, and one point on everything else. #2 The best premium benefits credit card for retirement: The Platinum Card from American Express If you’re looking for hands down one of the best travel experiences, you don’t have to look much further than The Platinum Card from American Express. American Express is one of the best-known credit card brands globally, and it’s almost sure to be accepted everywhere your travel takes you. Amex offers different versions of the Platinum credit card for other countries, such as the American Express Platinum Card for Canadians. These cards all bring very similar perks, but the US version (“The Platinum Card”) is hands down the best. Keep in mind that this is a premium credit card, so it comes with a hefty annual fee of $695. However, the welcome bonus offsets the fee several times over during the first year, and the long list of rewards, statement credits, and travel perks makes this a sweet deal even after that. Key perks of The Platinum Card The statement credits alone offset the annual fee. With this card, you get $200 back on hotel stays of more than two nights booked through American Express Travel. In addition, you can save $200 in airline fees, $240 on select streaming and entertainment services, $155 on Walmart+ memberships, $200 on Uber, and more. In terms of luxury or premium travel, besides all the travel insurance you can think of, you get access to the Platinum Travel Service, which works similar to a concierge service that helps you set up custom-tailored itineraries every time you hop on a plane to your next destination. You also get access to the American Express Global Lounge Collection that will make layovers and your pre-flight waiting times an absolute pleasure in more than 1,400 airport lounges worldwide. You can also breeze through airport security with a $189 statement credit on a CLEAR membership and even more credit for Global Entry and TSA Precheck services. Once you’re approved for this card, you’ll also receive an instant upgrade in elite status on two of the most important hotel chains in the world. You’ll receive Marriott Bonvoy Gold Elite Status and Hilton Honors Gold Status just for owning this card. In addition, this can grant you complimentary hotel room upgrades and other on-site perks. If you have a big budget set up for travel during retirement, having The Platinum Card from American Express will stretch that budget further than you thought possible, and it will help you enjoy your travels much more. #3 The best credit card for a retiree’s grocery purchases: Blue Cash Preferred® Card from American Express There are few contenders to the Blue Cash Preferred Card for grocery purchases in the US. This card makes rewards simple: it’s a cashback card that offers four everyday-spending categories focusing on grocery purchases. Key perks of the Blue Cash Preferred® Card The biggest perks of the Blue Cash Preferred card are the card’s cashback rates, which are off the charts. For example, this card pays you back 6% on grocery purchases in select US supermarkets (with a cap of $6,000 per year) and an additional 6% on select US streaming services. Besides these two categories, you get 3% back on transit and gas and the standard 1% cash back on all other purchases. This card even brings car rental loss and damage insurance, which can offset a good portion of your car rental costs if you ever need to rent a vehicle. But, while this perk comes with most premium cards, the key here is that the Blue Cash Preferred Card doesn’t carry an annual fee. That means you’re getting this benefit for free. So, if you’re planning to settle down during your golden years to live a laid-back lifestyle, binge-watching your favorite shows, and take a road trip to visit friends and family, this may be the perfect card for you. #4 Best business credit card for senior entrepreneurs: Ink Business Cash® Visa Retirement is a great time to start a business. You can take advantage of your experience, budget, and know-how to increase your chances of success compared to younger entrepreneurs. If you don’t feel like getting up early and commuting to work anymore (after all, you did retire), you can always start a remote business. Hire a virtual mailbox service to handle all your incoming business mail, and handle everything else yourself from the comfort of your home. Suppose starting a business is on your to-do list, or you already have a business up and running. In that case, a business credit card is a great tool to help you manage your business finances and earn rewards on business expenses. One of the seniors’ best business credit cards is the Ink Business Cash® Visa from Chase. Key perks of the Ink Business Cash® Visa Perks start with a handsome welcome bonus of $750 in cash back after spending $7,500 in the first three months of opening your account. This is equivalent to an extra cashback rate of 10% on top of the standard cash back rates you’ll earn whether or not you’re a new Ink Business Cash card holder. With this card, you can get 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on cell phones, landlines, internet, and cable. This means this card can help you save up to $1,250 on office supplies and communications annually. You’ll also earn 2% on the first $25,000 spent on gas and restaurants, plus 1% on everything else. So if you’re starting your business and require significant purchases, you can take advantage of the 0% intro APR for the first 12 months of account opening. Add in free account management software to easily track business expenses and additional cards for your employees at no extra cost, without an annual fee, and you’re laughing. #5 The best credit card for medical expenses: The AARP® Essential Rewards Mastercard from Barclays® You would only expect that an AARP co-branded credit card would make it to the top spots on the list of the best credit card for retirees. After all, AARP’s mission is to “enhance the quality of life for all as we age, leading positive social change and delivering value to members through advocacy, service, and information.” In collaboration with AARP, Barclays crafted the AARP® Essential Rewards Mastercard, specially designed to help seniors and retirees save on medical expenses. And the best part is that it’s free; there’s no annual fee. Key perks of the AARP® Essential Rewards Mastercard Besides not having an annual fee, the AARP® Essential Rewards Mastercard brings home a $100 cashback welcome bonus that you’ll get after charging $500 worth of purchases in the first three months of card membership. Apart from the welcome bonus, this cashback card also gives you an unlimited 3% cash back rate on gas and drug store purchases and an unlimited 2% cashback rate on medical expenses. While this may not seem like much for a healthy adult in their prime, it can add up significantly if you have any chronic health condition that requires regular medication or doctor’s visits. The AARP® Essential Rewards Mastercard can also help you save on travel expenses with a 0% APR introductory offer on balance transfers for 15 months (17.49%-26.49% variable APR after that). Finally, by applying for this card, you support AARP because Barclays donates $10 to the AARP Foundation for every new account opened and 1% of all eligible purchases made by cardholders. The bottom line: Do I need a new card for retirement? You might be thinking, “I’ve had the same credit card for years, and it’s working just fine. Do I really need to get a new one for retirement?” The answer is maybe. It depends on your circumstances and what you’re looking for in a credit card. If you already have a rewards card with thousands of points begging to be redeemed on a trip to Hawaii but are still short by a few thousand points, by all means, keep using your current card (although signing up for one of the options mentioned above and earning a juicy welcome bonus could give you the points you’re missing in record time). The key is to identify how your spending habits and preferences have changed or will likely change in the future and compare those against your current rewards card (or cards) and a likely candidate from this list to determine if you will do better by applying to the new card. Article by Jordan Bishop, Due About the Author Jordan Bishop discovered the power of credit cards at a young age. His first splash into travel hacking came with the wildly viral launch of Yore Oyster, which landed him national media attention and more than a million frequent flyer miles. He leveraged that opportunity to help tens of thousands of people save millions of dollars on flights, all while globetrotting the world. Updated on Jul 1, 2022, 3:47 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkJul 1st, 2022

Is It Time for a Marketing Plan Makeover?

In last month’s column, we talked about how generational characteristics can inform your marketing messaging. Now we want to know: When was the last time you tried a new marketing tactic? If it’s been a while since you took a critical look at your marketing plan and added something new to the mix, it might… The post Is It Time for a Marketing Plan Makeover? appeared first on RISMedia. In last month’s column, we talked about how generational characteristics can inform your marketing messaging. Now we want to know: When was the last time you tried a new marketing tactic? If it’s been a while since you took a critical look at your marketing plan and added something new to the mix, it might be time for a marketing plan makeover. Like every good makeover, you’ll want to keep what you know works for you and layer in a few fresh elements, such as: Video – one of the most effective ways to market yourself and your listings. Can you find a way to add video tours, Instagram Stories and Reels or YouTube to your marketing mix? Experiential marketing – a buzz-worthy concept in real estate marketing circles. The idea is to create in-person, activity-based events that your sphere will enjoy and hopefully talk about on their social media profiles. Does that spark any ideas for you? Traditional tactics – cold-calling and billboard advertising may be worth exploring, especially if you’ve never tried them before. What tried-and-true tactics could you implement into your marketing? Social media – an especially effective tool when used to engage your sphere and keep relationships warm. Could you benefit from a more strategic, consistent approach to social media? With so many options, how do you decide which new marketing tactics are worth your time and resources? The good news is that there is no “right” marketing mix. An effective marketing plan should include old and new techniques—both online and offline. Here’s a simple process for deciding which new tactics to add to your marketing plan. Gather information If you haven’t formulated a working marketing plan in a while (or ever!), cement your foundation by taking the National Association of REALTORS®’ Marketing Strategy and Lead Generation course. The recently updated curriculum covers everything from personal branding tactics and the lead generation cycle to how to measure the success of your efforts. It includes exercises, templates and tools to help build a new and improved marketing plan for your ever-evolving business. It’s sure to spark some ideas for new lead generation tactics and marketing approaches. View upcoming courses at training4re.com. Get inspired Take a cue from the most successful agents you know and get inspired by researching innovative marketing ideas for real estate. Some of the best ideas come from conversations with your peers. Seek out opportunities to network and engage with other agents both in-person and virtually. Go all in It’s easy to fall into a routine and use the same marketing tactics year in and year out. But it’s important to fully commit to your new marketing strategy, and don’t give up on it too quickly. After a year, analyze your efforts and adjust your plan again. Jennifer Rzeszewski is the vice president of Member Development and the executive director of the Center for REALTOR® Development (CRD), NAR’s home for exceptional education. Learn more about CRD at crd.realtor. The post Is It Time for a Marketing Plan Makeover? appeared first on RISMedia......»»

Category: realestateSource: rismediaJul 1st, 2022

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

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

Category: topSource: businessinsiderJun 30th, 2022

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

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

Category: smallbizSource: nytJun 29th, 2022

Escobar: Behind The Tin Curtain - BRICS+ Vs NATO/G7

Escobar: Behind The Tin Curtain - BRICS+ Vs NATO/G7 Authored by Pepe Escobar via The Cradle, The west is nostalgically caught up with outdated 'containment' policies, this time against Global South integration. Unfortunately for them, the rest of the world is moving on, together. Once upon a time, there existed an Iron Curtain which divided the continent of Europe. Coined by former British Prime Minister Winston Churchill, the term was in reference to the then-Soviet Union’s efforts to create a physical and ideological boundary with the west. The latter, for its part, pursued a policy of containment against the spread and influence of communism. Fast forward to the contemporary era of techno-feudalism, and there now exists what should be called a Tin Curtain, fabricated by the fearful, clueless, collective west, via G7 and NATO: this time, to essentially contain the integration of the Global South. BRICS against G7 The most recent and significant example of this integration has been the coming out of BRICS+ at last week’s online summit hosted by Beijing. This went far beyond establishing the lineaments of a ‘new G8,’ let alone an alternative to the G7. Just look at the interlocutors of the five historical BRICS (Brazil, Russia, India, China, South Africa): we find a microcosm of the Global South, encompassing Southeast Asia, Central Asia, West Asia, Africa and South America – truly putting the “Global” in the Global South. Revealingly, Russian President Vladimir Putin’s clear messages during the Beijing summit, in sharp contrast to G7 propaganda, were actually addressed to the whole Global South: Russia will fulfill its obligations to supply energy and fertilizers. Russia expects a good grain harvest – and to supply up to 50 million tons to world markets. Russia will ensure passage of grain ships into international waters even as Kiev mined Ukrainian ports. The negative situation on Ukrainian grain is artificially inflated. The sharp increase in inflation around the world is the result of the irresponsibility of G7 countries, not Operation Z in Ukraine. The imbalance of world relations has been brewing for a long time and has become an inevitable result of the erosion of international law. An alternative system Putin also directly addressed one of the key themes that the BRICS have been discussing in depth since the 2000s — the design and implementation of an international reserve currency. “The Russian Financial Messaging System is open for connection with banks of the BRICS countries.” “The Russian MIR payment system is expanding its presence. We are exploring the possibility of creating an international reserve currency based on the basket of BRICS currencies,” the Russian leader said. This is inevitable after the hysterical western sanctions post-Operation Z; the total de-dollarization imposed upon Moscow; and increasing trade between BRICS nations. For instance, by 2030, a quarter of the planet’s oil demand will come from China and India, with Russia as the major supplier. The “RIC” in BRICS simply cannot risk being locked out of a G7-dominated financial system. Even tightrope-walking India is starting to catch the drift. Who speaks for the ‘international community?’ At its current stage, BRICS represent 40 percent of world population, 25 percent of the global economy, 18 percent of world trade, and contribute over 50 percent for world economic growth. All indicators are on the way up. Sergey Storchak, CEO of Russian bank VEG, framed it quite diplomatically: “If the voices of emerging markets are not being heard in the coming years, we need to think very seriously about setting up a parallel regional system, or maybe a global system.” A “parallel regional system” is already being actively discussed between the Eurasia Economic Union (EAEU) and China, coordinated by Minister of Integration and Macroeconomics Sergey Glazyev, who has recently authored a stunning manifesto amplifying his ideas about world economic sovereignty. Developing the ‘developing world’ What happens in the trans-Eurasian financial front will proceed in parallel with a so far little known Chinese development strategy: the Global Development Initiative (GDI), announced by President Xi Jinping at the UN General Assembly last year. GDI can be seen as a support mechanism of the overarching strategy – which remains the Belt and Road Initiative (BRI), consisting of economic corridors interlinking Eurasia all the way to its western peninsula, Europe. At the High-level Dialogue on Global Development, part of the BRICS summit, the Global South learned a little more about the GDI, an organization set up in 2015. In a nutshell, the GDI aims to turbo-charge international development cooperation by supplementing financing to a plethora of bodies, for instance the South-South Cooperation Fund, the International Development Association (IDA), the Asian Development Fund (ADF), and the Global Environment Facility (GEF). Priorities include “poverty reduction, food security, COVID-19 response and vaccines,” industrialization, and digital infrastructure. Subsequently, a Friends of the GDI group was established in early 2022 and has already attracted over 50 nations. BRI and GDI should be advancing in tandem, even as Xi himself made it clear during the BRICS summit that “some countries are politicizing and marginalizing the developmental agenda by building up walls and slapping crippling sanctions on others.” Then again, sustainable development is not exactly the G7’s cup of tea, much less NATO’s. Seven against the world The avowed top aim of the G7 summit in Schloss Elmau at the Bavarian Alps is to “project unity” – as in the stalwarts of the collective west (Japan included) united in sustainable and indefinite “support” for the irretrievably failed Ukrainian state. That’s part of the “struggle against Putin’s imperialism,” but then there’s also “the fight against hunger and poverty, health crisis and climate change,” as German chancellor Scholz told the Bundestag. In Bavaria, Scholz pushed for a Marshall Plan for Ukraine – a ludicrous concept considering Kiev and its environs might as well be reduced to a puny rump state by the end of 2022. The notion that the G7 may work to “prevent a catastrophic famine,” according to Scholz, reaches a paroxysm of ludicrousness, as the looming famine is a direct consequence of the G7-imposed sanctions hysteria. The fact that Berlin invited India, Indonesia, South Africa and Senegal as add-ons to the G7, served as additional comic relief. The Tin Curtain is up It would be futile to expect from the astonishing collection of mediocrities “united” in Bavaria, under de facto leader of the European Commission (EC), Fuehrer Ursula von der Leyen, any substantial analysis about the breakdown of global supply chains and the reasons that forced Moscow to reduce gas flows to Europe. Instead, they blamed Putin and Xi. Welcome to the Tin Curtain – a 21st century reinvention of the Intermarium from the Baltic to the Black Sea, masterminded by the Empire of Lies, complete with western Ukraine absorbed by Poland, the Three Baltic Midgets: Bulgaria, Romania, Slovenia, Czechia and even NATO-aspiring Sweden and Finland, all of whom will be protected from “the Russian threat.” An EU out of control The role of the EU, lording over Germany, France and Italy inside the G7 is particularly instructive, especially now that Britain is back to the status of an inconsequential island-state. As many as 60 European ‘directives’ are issued every year. They must be imperatively transposed into internal law of each EU member-state. In most cases, there’s no debate whatsoever. Then there are more than 10,000 European ‘rulings,’ where ‘experts’ at the European Commission (EC) in Brussels issue ‘recommendations’ to every government, straight out of the neoliberal canon, regarding their expenses, their income and ‘reforms’ (on health care, education, pensions) that must be obeyed. Thus elections in every single EU member-nation are absolutely meaningless. Heads of national governments – Macron, Scholz, Draghi – are mere executants. No democratic debate is allowed: ‘democracy,’ as with ‘EU values,’ are nothing than smokescreens. The real government is exercised by a bunch of apparatchiks chosen by compromise between executive powers, acting in a supremely opaque manner. The EC is totally outside of any sort of control. That’s how a stunning mediocrity like Ursula von der Leyen – previously the worst Minister of Defense of modern Germany – was catapulted upwards to become the current EC Fuhrer, dictating their foreign, energy and even economic policy. What do they stand for? From the perspective of the west, the Tin Curtain, for all its ominous Cold War 2.0 overtones, is merely a starter before the main course: hardcore confrontation across Asia-Pacific – renamed “Indo-Pacific” – a carbon copy of the Ukraine racket designed to contain China’s BRI and GDI. As a countercoup, it’s enlightening to observe how the Chinese foreign ministry now highlights in detail the contrast between BRICS – and BRICS+ – and the imperial AUKUS/Quad/IPEF combo. BRICS stand for de facto multilateralism; focus on global development; cooperation for economic recovery; and improving global governance. The US-concocted racket on the other hand, stands for Cold War mentality; exploiting developing countries; ganging up to contain China; and an America-first policy that enshrines the monopolistic “rules-based international order.” It would be misguided to expect those G7 luminaries gathered in Bavaria to understand the absurdity of imposing a price cap on Russian oil and gas exports, for instance. Were that to really happen, Moscow will have no problems fully cutting energy supply to the G7. And if other nations are excluded, the price of the oil and gas they import would drastically increase. BRICS paving the way forward So no wonder the future is ominous. In a stunning interview to Belarus state TV, Russian Foreign Minister Sergei Lavrov summarized how “the west fears honest competition.” Hence, the apex of cancel culture, and “suppression of everything that contradicts in some way the neoliberal vision and arrangement of the world.” Lavrov also summarized the roadmap ahead, for the benefit of the whole Global South: “We don’t need a new G8. We already have structures…primarily in Eurasia. The EAEU is actively promoting integration processes with the PRC, aligning China’s Belt and Road Initiative with the Eurasian integration plans. Members of the Association of Southeast Asian Nations are taking a close look at these plans. A number of them are signing free trade zone agreements with the EAEU. The Shanghai Cooperation Organization is also part of these processes… There is one more structure beyond the geographic borders of Eurasia.” “It is BRICS. This association is relying less and less on the Western style of doing business, and on Western rules for international currency, financial and trade institutions. They prefer more equitable methods that do not make any processes depend on the dominant role of the dollar or some other currency. The G20 fully represents BRICS and five more countries that share the positions of BRICS, while the G7 and its supporters are on the other side of the barricades.” ... “This is a serious balance. The G20 may deteriorate if the West uses it for fanning up confrontation. The structures I mentioned (SCO, BRICS, ASEAN, EAEU and CIS) rely on consensus, mutual respect and a balance of interests, rather than a demand to accept unipolar world realities.” Tin Curtain? More like Torn Curtain. Tyler Durden Wed, 06/29/2022 - 00:05.....»»

Category: dealsSource: nytJun 29th, 2022

Futures, Commodities Jump After China Cuts Quarantine

Futures, Commodities Jump After China Cuts Quarantine US stock futures rebounded from Monday's modest losses and traded near session highs after China reduced quarantine times for inbound travelers by half - to seven days of centralized quarantine and three days of health monitoring at home -  the biggest shift yet in a Covid-19 policy that has left the world’s second-largest economy isolated as it continues to try and eliminate the virus. The move, which fueled optimism about stronger economic growth and boosted appetite for both commodities and risk assets, sent S&P 500 futures and Nasdaq 100 contracts higher by 0.6% each at 7:15 a.m. in New York, setting up heavyweight technology stocks for a rebound. Mining and energy shares led gains in Europe’s Stoxx 600 and an Asian equity index erased losses to climb for a fourth session. 10Y TSY yields extended their move higher rising to 3.25% or about +5bps on the session, while the dollar and bitcoin were flat, and oil and commodity-linked currencies strengthened. In premarket trading, the biggest mover was Kezar Life Sciences which soared 85% after reporting positive results for its lupus drug. On the other end, Robinhood shares fell 3.2%, paring a rally yesterday sparked by news that FTX is exploring whether to buy the company. In a statement, FTX head Sam Bankman-Fried said he is excited about the firm’s business prospects, but “there are no active M&A conversations with Robinhood." Here are some of the other most notable premarket movers" Playtika (PLTK US) shares rallied 11% in premarket trading after a report that private equity firm Joffre Capital agreed to acquire a majority stake in the gaming company from a Chinese investment group for $21 a share. Nike (NKE US) shares fell 2.3% in US premarket trading, with analysts reducing their price targets after the company gave a downbeat forecast for gross margin and said it was being cautious in its outlook for the China market. Spirit Airlines (SAVE US) shares rise as much as 5% in US premarket trading after JetBlue boosted its all-cash bid in response to an increased offer by rival suitor Frontier in the days before a crucial shareholder vote. Snowflake (SNOW US) rises 3.3% in US premarket trading after Jefferies upgraded the stock to buy from hold, saying its valuation is now “back to reality” and offers a good entry point given the software firm’s long-term targets. Sutro Biopharma (STRO US) shares rise 34% in US premarket trading after the company and Astellas said they will collaborate to advance development of immunostimulatory antibody-drug conjugates, which are a modality for treating tumors and designed to boost anti-cancer activity. State Street (STT US) shares could be in focus after Deutsche Bank downgraded the stock to hold, while lowering EPS estimates and price targets across interest rate sensitive coverage of trust banks and online brokers. US bank stocks may be volatile during Tuesday’s trading session after the lenders announced a wave of dividend increases following last week’s successful stress test results. Stock rallies have proved fleeting this year as higher borrowing costs to fight inflation restrain economic activity in a range of nations. European Central Bank President Christine Lagarde affirmed plans for an initial quarter-point increase in interest rates in July, but said policy makers are ready to step up action to tackle record inflation if warranted. Some analysts also argue still-bullish earnings estimates are too optimistic. Earnings revisions are a risk with the US economy set to slow next year, though China emerging from Covid strictures could act as a global buffer, according to Lorraine Tan, Morningstar director of equity research. “You got a US slowdown in 2023 in terms of growth, but you have China hopefully coming out of its lockdowns,” Tan said on Bloomberg Radio. In Europe, stocks are well bid with most European indexes up over 1%. Euro Stoxx 50 rose as much as 1.2% before drifting off the highs. Miners, energy and auto names outperform. The Stoxx 600 Basic Resources sub-index rises as much as 3.5% led by heavyweights Rio Tinto and Anglo American, as well as Polish copper producer KGHM and Finnish forestry companies Stora Enso and UPM- Kymmene. Iron ore and copper reversed losses after China eased its quarantine rules for new arrivals, while oil gained for a third session amid risks of supply disruptions. Iron ore in Singapore rose more than 4% after being firmly lower earlier in the session, while copper and other base metals also turned higher. Here are the biggest European movers: Luxury stocks climb boosted by an easing of Covid-19 quarantine rules in the key market of China. LVMH shares rise as much as 2.5%, Richemont +3.1%, Kering +3%, Moncler +3% Energy and mining stocks are the best-performing groups in the rising Stoxx Europe 600 index amid commodity gains. Shell shares rise as much as 3.8%, TotalEnergies +2.7%, BP +3.4%, Rio Tinto +4.6%, Glencore +3.9% Banco Santander shares rise as much as 1.8% after a report that the Spanish bank has hired Credit Suisse and Goldman Sachs for its bid to buy Mexico’s Banamex. GN Store Nord shares gain as much as 4.2% after Nordea resumes coverage on the hearing devices company with a buy rating. Swedish Match shares rise as much as 4% as Philip Morris International’s offer document regarding its bid for the company has been approved and registered by the Swedish FSA. Wise shares decline as much as 15%, erasing earlier gains after the fintech firm reported full- year earnings. Citi said the results were “mixed,” with strong revenue growth being offset by lower profitability. UK water stocks decline as JPMorgan says it is turning cautious on the sector on the view that future regulated returns could surprise to the downside, in a note cutting Severn Trent to underweight. Severn Trent shares fall as much as 6%, Pennon -7.7%, United Utilities -2.3% Akzo Nobel falls as much as 4.5% in Amsterdam trading after the paint maker announced the appointment of former Sulzer leader Greg Poux-Guillaumeas chief executive officer, succeeding Thierry Vanlancker. Danske Bank shares fall as much as 4%, as JPMorgan cut its rating on the stock to underweight, saying in a note that risks related to Swedish property will likely create some “speed bumps” for Nordic banks though should be manageable. In the Bavarian Alps, limiting Russia’s profits from rising energy prices that fuel its war in Ukraine have been among the main topics of discussion at a Group of Seven summit. G-7 leaders agreed that they want ministers to urgently discuss and evaluate how the prices of Russian oil and gas can be curbed. Earlier in the session, Asian stocks erased earlier losses as China’s move to ease quarantine rules for inbound travelers bolstered sentiment. The MSCI Asia Pacific Index rose as much as 0.6% after falling by a similar magnitude. The benchmark is set for a fourth day of gains, led by the energy and utilities sectors. BHP and Toyota contributed the most to the gauge’s advance, while China’s technology firms were among the biggest losers as a plan by Tencent’s major backer to further cut its stake fueled concern of more profit-taking following a strong rally.   A move by Beijing to cut quarantine times for inbound travelers by half is helping cement gains which have made Chinese shares the world’s best-performing major equity market this month. The nation’s stocks are approaching a bull market even as their recent rise pushes them to overbought levels. Still, the threat of a sharp slowdown in the world’s largest economy may pose a threat to the outlook. “US recession risk is still there and I think that’ll obviously have impact on global sectors,” Lorraine Tan, director of equity research at Morningstar, said on Bloomberg TV. “Even if we do get some China recovery in 2023, which could be a buffer for this region, it’s not going to offset the US or global recession.”  Most stock benchmarks in the region finished higher following China’s move to ease its travel rules. Main equity measures in Japan, Hong Kong, South Korea and Australia rose while those in Taiwan and India fell. Overall, Asian stocks are on course to complete a monthly decline of about 4%.    Meanwhile, the People’s Bank of China pledged to keep monetary policy supportive to help the nation’s economy. It signaled that stimulus would likely focus on boosting credit rather than lowering interest rates. Japanese stocks gained as investors adjusted positions heading into the end of the quarter.  The Topix Index rose 1.1% to 1,907.38 as of the market close in Tokyo, while the Nikkei 225 advanced 0.7% to 27,049.47. Toyota Motor contributed most to the Topix’s gain, increasing 2.2%. Out of 2,170 shares in the index, 1,736 rose and 374 fell, while 60 were unchanged. “As the end of the April-June quarter approaches, there is a tendency for institutional investors to rebalance,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley. “It will be easier to buy into cheap stocks, which is a factor that will support the market in terms of supply and demand.” India’s benchmark stock gauge ended flat after trading lower for most of the session as investors booked some profits after a three-day rally.  The S&P BSE Sensex closed little changed at 53,177.45 in Mumbai, while the NSE Nifty 50 Index gained 0.1%.  Six of the the 19 sector sub-gauges compiled by BSE Ltd. dropped, led by consumer durables companies, while oil & gas firms were top performers.  ICICI Bank was among the prominent decliners on the Sensex, falling 1%. Out of 30 shares in the Sensex index, 17 rose and 13 fell. In rates, fixed income sold off as treasuries remained under pressure with the 10Y yield rising as high as 3.26%, following steeper declines for euro-zone and UK bond markets for second straight day and after two ugly US auctions on Monday. Yields across the curve are higher by 2bp-5bp led by the 7-year ahead of the $40 billion auction. In Europe, several 10-year yields are 10bp higher on the day after comments by an ECB official spurred money markets to price in more policy tightening. WI 7Y yield at around 3.32% exceeds 7-year auction stops since March 2010 and compares with 2.777% last month. Monday’s 5-year auction drew a yield more than 3bp higher than its yield in pre-auction trading just before the bidding deadline, a sign dealers underestimated demand. Traders attributed the poor results to factors including short base eroded by last week’s rally, recently elevated market volatility discouraging market-making, and sub-par participation during what is a popular vacation week in the US. Focal points for US session include 7-year note auction at 1pm ET; a 5-year auction Monday produced notably weak demand metrics. The belly of the German curve underperformed as markets focus  on hawkish comments from ECB officials: 5y bobl yields rose 10 bps near 1.46%, red pack euribors dropped 10-13 ticks and ECB-dated OIS rates priced in 163 basis points of tightening by year end. In FX, Bloomberg dollar spot index is near flat as the greenback reversed earlier losses versus all of its Group-of-10 peers apart from the yen while commodity currencies were the best performers. The euro rose above $1.06 before paring gains after ECB Governing Council member Martins Kazaks said the central bank should consider a first rate hike of more than a quarter-point if there are signs that high inflation readings are feeding expectations. Money markets ECB raised tightening wagers after his remarks. ECB President Lagarde later affirmed plans for an initial quarter-point increase in interest rates in July but said policy makers are ready to step up action to tackle record inflation if warranted. The ECB is likely to drain cash from the banking system to offset any bond purchases made to restrain borrowing costs for indebted euro-area members, Reuters reported, citing two sources it didn’t identify. Elsewhere, the pound drifted against the dollar and euro after underperforming Monday, with focus on quarter-end flows, lingering Brexit risks and the UK economic outlook. Scottish First Minister Nicola Sturgeon due to speak later on how she plans to hold a second referendum on Scottish independence by the end of next year. The yen gave up an Asia session gain versus the dollar as US equity futures reversed losses. The Australian dollar rose after China cut its mandatory quarantine period to 10 days from three weeks for inbound visitors in its latest Covid-19 guidance. JPY was the weakest in G-10, drifting below 136 to the USD. In commodities, oil rose for a third day with global output threats compounding already red-hot markets for physical supplies and as broader financial sentiment improved. Brent crude breached $117 a barrel on Tuesday, but some of the most notable moves in recent days have been in more specialist market gauges. A contract known as the Dated-to-Frontline swap -- an indicator of the strength in the key North Sea market underpinning much of the world’s crude pricing -- hit a record of more than $5 a barrel. The rally comes amid growing supply outages in Libya and Ecuador, exacerbating ongoing market tightness. Oil prices also rose Tuesday as broader sentiment was boosted by China’s move to cut in half the time new arrivals must spend in isolation, the biggest shift yet in its pandemic policy. Meanwhile, the G-7 tasked ministers to urgently discuss an oil price cap on Russia.  Finally, the prospect of additional supply from two of OPEC’s key producers also looks limited. On Monday Reuters reported that French President Emmanuel Macron told his US counterpart Joe Biden that the United Arab Emirates and Saudi Arabia are already pumping almost as much as they can. In the battered metals space, LME nickel rose 2.7%, outperforming peers and leading broad-based gains in the base-metals complex. Spot gold rises roughly $3 to trade near $1,826/oz Looking to the day ahead now, data releases include the FHFA house price index for April, the advance goods trade balance and preliminary wholesale inventories for May, as well as the Conference Board’s consumer confidence for June and the Richmond Fed’s manufacturing index. From central banks, we’ll hear from ECB President Lagarde, the ECB’s Lane, Elderson and Panetta, the Fed’s Daly, and BoE Deputy Governor Cunliffe. Finally, NATO leaders will be meeting in Madrid. Market Snapshot S&P 500 futures up 0.5% to 3,922.50 STOXX Europe 600 up 0.6% to 417.65 MXAP up 0.4% to 162.36 MXAPJ up 0.4% to 539.85 Nikkei up 0.7% to 27,049.47 Topix up 1.1% to 1,907.38 Hang Seng Index up 0.9% to 22,418.97 Shanghai Composite up 0.9% to 3,409.21 Sensex down 0.3% to 52,990.39 Australia S&P/ASX 200 up 0.9% to 6,763.64 Kospi up 0.8% to 2,422.09 German 10Y yield little changed at 1.62% Euro little changed at $1.0587 Brent Futures up 1.4% to $116.65/bbl Gold spot up 0.3% to $1,828.78 U.S. Dollar Index little changed at 103.89 Top Overnight News from Bloomberg In Tokyo’s financial circles, the trade is known as the widow- maker. The bet is simple: that the Bank of Japan, under growing pressure to stabilize the yen as it sinks to a 24-year low, will have to abandon its 0.25% cap on benchmark bond yields and let them soar, just as they already have in the US, Canada, Europe and across much of the developing world Bank of Italy Governor Ignazio Visco may leave his post in October, paving the way for the appointment of a high profile executive close to Premier Mario Draghi, daily Il Foglio reported NATO is set to label China a “systemic challenge” when it outlines its new policy guidelines this week, while also highlighting Beijing’s deepening partnership with Russia, according to people familiar with the matter The PBOC pledged to keep monetary policy supportive to aid the economy’s recovery, while signaling that stimulus would likely focus on boosting credit rather than lowering interest rates A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks were mixed with the region partially shrugging off the lacklustre handover from the US. ASX 200 was kept afloat with energy leading the gains amongst the commodity-related sectors. Nikkei 225 swung between gains and losses with upside capped by resistance above the 27K level. Hang Seng and Shanghai Comp. were pressured amid weakness in tech and lingering default concerns as Sunac plans discussions on extending a CNY bond and with Evergrande facing a wind-up petition. Top Asian News China is to cut quarantine time for international travellers, according to state media cited by Reuters. Shanghai Disneyland (DIS) will reopen on June 30th, according to Reuters. PBoC injected CNY 110bln via 7-day reverse repos with the rate at 2.10% for a CNY 100bln net daily injection. China's state planner official said China faces new challenges in stabilising jobs and prices due to COVID and risks from the Ukraine crisis, while the NDRC added they will not resort to flood-like stimulus but will roll out tools in its policy reserve in a timely way to cope with challenges, according to Reuters. China's state planner NDRC says China is to cut gasoline and diesel retail prices by CNY 320/tonne and CNY 310/tonne respectively from June 29th. BoJ may have been saddled with as much as JPY 600bln in unrealised losses on its JGB holdings earlier this month, as a widening gap between domestic and overseas monetary policy pushed yields higher and prices lower, according to Nikkei. European bourses are firmer as sentiment picked up heading into the cash open amid encouraging Chinese COVID headlines. Sectors are mostly in the green with no clear theme. Base metals and Energy reside as the current winners and commodities feel a boost from China’s COVID updates. Stateside, US equity futures saw a leg higher in tandem with global counterparts, with the RTY narrowly outperforming. Twitter (TWTR) in recent weeks provided Tesla (TSLA) CEO Musk with historical tweet data and access to its so-called fire hose of tweets, according to WSJ sources. Top European News UK lawmakers voted 295-221 to support the Northern Ireland Protocol bill in the first of many parliamentary tests it will face during the months ahead, according to Reuters. Scotland's First Minister Sturgeon will set out a plan today for holding a second Scottish Independence Referendum, according to BBC News. ECB’s Kazaks Says Worth Looking at Larger Rate Hike in July G-7 Latest: Leaders Want Urgent Evaluation of Energy Price Caps Ex- UBS Staffer Wants Payout for Exposing $10 Billion Swiss Stash SocGen Blames Clifford Chance in $483 Million Gold Suit GSK’s £40 Billion Consumer Arm Picks Citi, UBS as Brokers Russian Industry Faces Code Crisis as Critical Software Pulled ECB ECB's Lagarde said inflation in the euro area is undesirably high and it is projected to stay that way for some time to comeFragmentation tool, via the ECB. ECB's Kazaks said 25bps in July and 50bps in September is the base case, via Bloomberg TV. Kazaks said it is worth looking at a 50bps hike in July and front-loading hikes might be reasonable. Fragmentation risks should not stand in the way of monetary policy normalisation. If necessary, the ECB will come up with tools to address fragmentation. ECB's Wunsch said he is comfortable with a 50bps hike in September; adds that 200bps of hikes are needed relatively fast, and anti-fragmentation tool should have no limits if market moves are unwarranted, via Reuters. Bank of Italy said Governor Visco's resignation is not on the table, according to a spokesperson cited by Reuters. Fixed Income Bond reversal continues amidst buoyant risk sentiment, hawkish ECB commentary and supply. Bunds lose two more big figures between 146.80 peak and 144.85 trough, Gilts down to 112.06 from 112.86 at best and 10 year T-note retreats within 117-01/116-14 range FX DXY regroups on spot month end as yields rally and rebalancing factors offer support - index within 103.750-104.020 range vs Monday's 103.660 low. Euro continues to encounter resistance above 1.0600 via 55 DMA (1.0614 today); Yen undermined by latest bond retreat and renewed risk appetite - Usd/Jpy eyes 136.00 from low 135.00 area and close to 134.50 yesterday. Aussie breaches technical and psychological resistance with encouragement from China lifting or easing more Covid restrictions - Aud/Usd through 10 DMA at 0.6954. Loonie and Norwegian Krona boosted by firm rebound in oil as France fans supply concerns due to limited Saudi and UAE production capacity - Usd/Cad sub-1.2850 and Eur/Nok under 10.3500. Yuan receives another PBoC liquidity boost to compliment positive developments on the pandemic front, but Rand hampered by latest power cut warning issued by SA’s Eskom Commodities WTI and Brent futures were bolstered in early European hours amid encouragement seen from China's loosening of COVID restrictions. Spot gold is uneventful, around USD 1,825/oz in what has been a sideways session for the bullion since the reopening overnight. Base metals are posting broad gains across the complex - with LME copper back above USD 8,500/t amid China-related optimism. US Event Calendar 08:30: May Advance Goods Trade Balance, est. -$105b, prior -$105.9b, revised -$106.7b 08:30: May Wholesale Inventories MoM, est. 2.1%, prior 2.2% May Retail Inventories MoM, est. 1.6%, prior 0.7% 09:00: April S&P CS Composite-20 YoY, est. 21.15%, prior 21.17% 09:00: April S&P/CS 20 City MoM SA, est. 1.95%, prior 2.42% 09:00: April FHFA House Price Index MoM, est. 1.4%, prior 1.5% 10:00: June Conf. Board Consumer Confidenc, est. 100.0, prior 106.4 Conf. Board Expectations, prior 77.5; Present Situation, prior 149.6 10:00: June Richmond Fed Index, est. -5, prior -9 DB's Jim Reid concludes the overnight wrap It's been a landmark night in our household as last night was the first time the 4-year-old twins slept without night nappies. So my task this morning after I send this to the publishers is to leave for the office before they all wake up so that any accidents are not my responsibility. Its hopefully the end of a near 7-year stretch of nappies being constantly around in their many different guises and states of unpleasantness. Maybe give it another 30-40 years and they'll be back. Talking of unpleasantness, as we near the end of what’s generally been an awful H1 for markets, yesterday saw the relief rally from last week stall out, with another bond selloff and an equity performance that fluctuated between gains and losses before the S&P 500 (-0.30%) ended in negative territory. In terms of the specific moves, sovereign bonds lost ground on both sides of the Atlantic, with yields on 10yr Treasuries up by +7.0bps following their -9.6bps decline from the previous week. That advance was led by real rates (+9.6bps), which look to have been supported by some decent second-tier data releases from the US during May yesterday. The preliminary reading for US durable goods orders surprised on the upside with a +0.7% gain (vs. +0.1% expected). Core capital goods orders also surprised on the upside with a +0.8% advance (vs. +0.2% expected). And pending home sales were unexpectedly up by +0.7% (vs. -4.0% expected). Collectively that gave investors a bit more confidence that growth was still in decent shape last month, which is something that will also offer the Fed more space to continue their campaign of rate hikes into H2. This morning 10yr USTs yields have eased -2.45 bps to 3.17% while 2yr yields (-4 bps) have also moved lower to 3.08%, as we go to press. Staying at the front end, when it comes to those rate hikes, if you look at Fed funds futures they show that investors are still only expecting them to continue for another 9 months, with the peak rate in March or April 2023 before markets are pricing in at least a full 25bps rate cut by end-2023 from that point. I pointed out in my chart of the day yesterday (link here) that the median time historically from the last hike of the cycle to the first cut was only 4 months, and last time it was only 7 months between the final hike in December 2018 and the next cut in July 2019. So it wouldn’t be historically unusual if Fed funds did follow that pattern whether that fits my view or not. Over in Europe yesterday there was an even more aggressive rise in yields, with those on 10yr bunds (+10.9bps), OATs (+11.0bps) and BTPs (+9.1bps) all rising on the day as they bounced back from their even larger declines over the previous week. That came as investors pared back their bets on a more dovish ECB that they’d made following the more negative tone last week, and the rate priced in by the December ECB meeting rose by +8.5bps on the day. For equities, the major indices generally fluctuated between gains and losses through the day. The S&P 500 followed that pattern and ultimately fell -0.30%, which follows its best daily performance in over 2 years on Friday Quarter-end rebalancing flows seem set to drive markets back-and-forth price this week. Even with the decline yesterday, the index is +6.36% higher since its closing low less than a couple of weeks ago. And over in Europe, the STOXX 600 (+0.52%) posted a decent advance, although that masked regional divergences, including losses for the CAC 40 (-0.43%) and the FTSE MIB (-0.86%). Energy stocks strongly outperformed in the index, supported by a further rise in oil prices that left both Brent crude (+1.74%) and WTI (+1.81%) higher on the day. G7 ministers reportedly agreed to explore a cap on Russian gas and oil exports, with the official mandate expected to be announced today, but it would take time for any mechanism to be developed. The impact on global oil supply is not clear: if Russia retaliates supply could go down, if this enables other third parties to import more Russian oil supply could go up. Elsewhere, political unrest in Libya and Ecuador could simultaneously hit oil supply. In early Asian trading, oil prices continue to move higher, with Brent futures up +1.13% at $116.39/bbl and WTI futures gaining +1% to just above the $110/bbl level. Asian equity markets are struggling a bit this morning. The Hang Seng (-1.00%) is the largest underperformer amid a weakening in Chinese tech stocks whilst the Nikkei (-0.15%), Shanghai Composite (-0.15%) and CSI (-0.19%) are trading in negative territory in early trade. Elsewhere, the Kospi (-0.05%) is just below the flatline. US stock futures are slipping with contracts on the S&P 500 (-0.12%) and NASDAQ 100 (-0.18%) both slightly lower. In central bank news, the People’s Bank of China (PBOC) Governor Yi Gang pledged to provide additional monetary support to the economy to recover from Covid outbreaks and lockdowns and other stresses. In a rare interview conducted in English, the central bank chief did caution though that the real interest rate is low thereby indicating limited room for large-scale monetary easing. Turning to geopolitical developments, the G7 summit continued in Germany yesterday, and in a statement it said they would “further intensify our economic measures against Russia”. Separately, NATO announced that it will increase the number of high readiness forces to over 300,000, with the alliance’s leaders set to gather in Madrid from today. And we’re also expecting a new round of nuclear talks with Iran to take place at some point this week, something Henry mentioned in his latest Mapping Markets out yesterday (link here), which if successful could in time pave the way for Iranian oil to return to the global market. Finally, whilst there were some decent May data releases from the US, the Dallas Fed’s manufacturing activity index for June fell to a 2-year low of -17.7 (vs. -6.5 expected). To the day ahead now, and data releases include Germany’s GfK consumer confidence for July, French consumer confidence for June, whilst in the US there’s the FHFA house price index for April, the advance goods trade balance and preliminary wholesale inventories for May, as well as the Conference Board’s consumer confidence for June and the Richmond Fed’s manufacturing index. From central banks, we’ll hear from ECB President Lagarde, the ECB’s Lane, Elderson and Panetta, the Fed’s Daly, and BoE Deputy Governor Cunliffe. Finally, NATO leaders will be meeting in Madrid. Tyler Durden Tue, 06/28/2022 - 08:00.....»»

Category: blogSource: zerohedgeJun 28th, 2022

Air-Travel Demand Boosts SkyWest (SKYW) Despite Low Liquidity

SkyWest (SKYW) currently benefits from upbeat air-travel demand and fleet-modernization efforts. Weakness in balance sheet is a headwind. SkyWest, Inc. SKYW currently benefits from increased air-travel demand. However, its weak balance sheet is a challenge.SkyWest reported first-quarter 2022 earnings of 35 cents per share, surpassing the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, SKYW reported earnings of 71 cents. However, the 50.7% year-over-year decline in earnings was due to the 50.6% rise in total costs. Revenues of $735.2 million outperformed the Zacks Consensus Estimate of $667.3 million. The top line jumped 37.53% year over year.How is SkyWest Faring?With improvement in air-travel demand, SkyWest carried 72.2% and 53.9% more passengers in 2021 and first-quarter 2022, respectively, than the corresponding year-ago levels. As a result, passenger load factor (percentage of seats filled by passengers) expanded 1820 basis points to 74.6% in 2021. The measure increased 20.9 percentage points to 77.6% in first-quarter 2022.  With air-travel demand continuing to improve, load factor is likely to be impressive in the remaining quarters of 2022 as well.SkyWest's fleet-modernization efforts are commendable as well. To upgrade its fleet, SkyWest entered into an agreement with Delta to purchase and operate 16 new E175 aircraft in August. Per the agreement, the 16 new E175 aircraft will come online by early 2023.SkyWest's current ratio at the end of the first quarter of 2022 was 0.94. A current ratio of less than 1 does not bode well as it implies that the company may have problems in meeting its short-term debt obligations.Rising operating expenses raise a concern for SkyWest. In first-quarter 2022, expenses related to salary, wages and benefits increased 36.5% year over year. Aircraft fuel cost surged 30.6% in the March quarter with oil prices moving north. Due to the increase in the components, total operating costs (up 50.5% in first-quarter 2022) are escalating and limiting bottom-line growth. The fact that more planes are in operation to meet the spike in demand for air travel also contributed to the rise in fuel expenses.Zacks Rank & Key PicksSkyWest currently carries a Zacks Rank #3 (Hold). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks in the broader Zacks Transportation sector are Ryder System, Inc. R, C.H. Robinson Worldwide, Inc. CHRW and GATX Corporation (GATX).Ryder has a trailing-four quarter surprise of 48.2%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters. R is benefiting from improving economic and freight conditions in the United States.Revenues in all segments grew (on higher rental revenues, new business and favorable pricing) in first-quarter 2022. R currently carries a Zacks Rank #2 (Buy).The expected long-term (three-to-five years) earnings per share (EPS) growth rate for C.H. Robinson is pegged at 9%. Better freight market conditions are aiding CHRW.In first-quarter 2022, the top line improved 41.8% owing to favorable truckload pricing for customers and handsome profits in ocean freight. CHRW currently sports a Zacks Rank #1.GATX has a trailing-four quarter surprise of 40.1%, on average, with its earnings having surpassed the Zacks Consensus Estimate in all the last four quarters.The gradual improvement in the North American railcar leasing market is a boon for GATX. GATX currently has a Zacks Rank of 2.  Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryder System, Inc. (R): Free Stock Analysis Report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022

Will Amazon (AMZN) See Strong Prime Day Momentum?

Amazon's (AMZN) upcoming Prime Day event is expected to have less momentum among customers due to lower discounts on many products. Amazon’s AMZN forthcoming annual event Prime Day is not likely to be as hit as it has been over the past years.AMZN’s investment in the event seems lower than the previous years’ level. Moreover, discounts on many products during the event do not look as generous as what Amazon usually offers.This might cause Amazon’s loss of momentum among the customers during the underlined event.Consequently, contributions from Prime Day 2022 to its third-quarter sales might be lower than those in the prior years. This does not bode well for Amazon, which is already battered by a slowdown in online shopping activities as the pre-pandemic levels resumed.Amazon.com, Inc. Price and Consensus Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. QuoteWe note that a weak Prime Day momentum might hurt investors’ sentiment.Shares of Amazon were down 30.1% in the year-to-date period, lagging the Zacks Retail-Wholesale sector’s decline of 23.7%.Amazon’s StanceNevertheless, the e-commerce giant is gearing up to offer various products across several brands at "throwaway prices" during Prime Day 2022.Amazon is holding the event in 20 nations, among which Poland and Sweden are the countries where Prime Day will be held for the first time. This remains a major positive as AMZN will be able to gain further traction among the customers in these countries on the back of lucrative deals.In addition, Amazon has already started offering early deals with great discounts on various products, which are expected to drive its momentum among the Prime shoppers.Strong rewards for Amazon Prime Rewards Visa Card users, new Amazon Fresh Stores Prime Benefit and special buy now, pay later offers are expected to aid AMZN in attracting new Prime subscribers.All these factors are anticipated to aid Amazon in maximizing its revenues. Per an Insider Intelligence report, sales from Prime Day are expected to touch $7.76 billion in the United States, which is approximately 17% above the level of last year’s event.Strong FundamentalsWe believe that the upcoming Prime Day event bodes well with Amazon’s growing initiatives to strengthen its Prime program, thereby expanding its subscriber base.Amazon’s robust delivery network remains a major positive for the event as it aids AMZN in delivering an enhanced shopping experience by ensuring ultrafast delivery of items to Prime members.Expansion of the overall content portfolio and an increasing number of original content on Prime Video are some of the key factors behind the Prime momentum and are likely to continue accelerating the Prime engagement.This apart, Amazon’s consistent efforts to strengthen its other Prime services, including Prime Music, Prime Gaming, Prime Reading and Amazon Photos remain noteworthy.However, rising inflationary pressures, increasing fulfillment costs, unfavorable foreign exchange headwinds and rising staffing costs remain major overhangs for Amazon.Zacks Rank & Stocks to ConsiderCurrently, Amazon carries a Zacks Rank #5 (Strong Sell).Investors interested in the retail-wholesale sector can consider better-ranked companies like AutoNation AN,      Arcos Dorados ARCO and Burberry Group BURBY. While AutoNation sports a Zacks Rank #1 (Strong Buy), Arcos Dorados and Burberry Group have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.AutoNation has lost 0.5% in the year-to-date period. The long-term earnings growth rate for the ANstock is currently projected at 24.7%.Arcos Dorados has gained 18.5% in the year-to-date period. The long-term earnings growth rate for the ARCOstock is currently projected at 34.4%.Burberry Group has lost 14.9% in the year-to-date period. The long-term earnings growth rate for the BURBYstock is currently projected at 13.8%. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report AutoNation, Inc. (AN): Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report Burberry Group PLC (BURBY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022

Q2 Earnings Season Preview and Featured Analyst Reports for J&J, AMD & Union Pacific

Today's Research Daily features preview of the Q2 earnings season and new research reports for J&J (JNJ), AMD (AMD), and Union Pacific (UNP). Monday, June 27, 2022 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features current 2022 Q2 consensus expectations for the S&P 500 index and new research reports on 16 major stocks, including Johnson & Johnson (JNJ), Advanced Micro Devices, Inc. (AMD), and Union Pacific Corporation (UNP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>> Q2 Earnings Season Preview Total Q2 earnings for the S&P 500 index are expected to be up +2.3% from the year-earlier period on +9.8% higher revenues, with strong growth in the Energy sector offsetting declines in the Finance and Tech sectors. Excluding the strong contribution from the Energy sector whose Q2 earnings are expected to be up +187.5%, total earnings for the rest of the S&P 500 index would be down -5% from the same period last year. The Energy sector strength has also been factor in the aggregate revisions trend, with positive Energy sector revisions helping offset estimate cuts elsewhere. In other words, the Energy sector strength is helping mask weakness in most of other sectors, resulting in a seemingly stable aggregate revisions picture. This trend has been in play for 2022 Q2 as well as full-year 2022. For full-year 2022, the current expectations is for S&P 500 earnings to be up +9.1% on +9.4% higher revenues. Excluding the Energy sector, 2022 earnings for the remainder of the index would be up only +3.7%. With respect to the revisions trend, aggregate 2022 earnings estimates are actually +3.4% since the start of the year. But it is the record upward revisions to the Energy sector that is keeping the aggregate revisions trend in positive territory. Excluding the positive revisions to the Energy, which are up +72.7% since the start of the year, aggregate 2022 earnings for the rest of the rest of the index are down -9.8% since the start of the year. As such, it is misleading for market participants to claim that earnings estimates have yet to come down. There will most likely be more downward adjustments to estimates if the bearish macroeconomic projections come to fruition. But in a base-case outlook, earnings estimates have already adjusted lower. For more details about Q2 estimates and evolving expectations for the coming periods, please check out our weekly Earnings Trend report here >>> Will Earnings Estimates Finally Come Down? Featured Analyst ReportsJohnson & Johnson shares have modestly outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date basis (+7.9% vs. +7.5%), with the company’s diversification makes it relatively resilient amid macroeconomic turmoil. Its Pharma unit is performing at above-market levels, supported by its blockbuster drugs, Darzalex and Stelara, and contribution from newer drugs, Erleada and Tremfya. Sales in the MedTech unit recovered in Q1 and the company is focusing on growing this business through new products. However, sales in Consumer unit are being hurt by external supply constraints. J&J is making rapid progress with its pipeline and line extensions. Several pivotal data readouts are expected in 2022. Headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, they continue to remain an overhang on the stock. (You can read the full research report on Johnson & Johnson here >>>) AMD shares have declined -1.7% over the past year against Zacks Electronics - Semiconductors industry’s decline of -3.5%, with the company benefiting from strong demand of its Ryzen and EPYC server processors, owing to the increasing proliferation of Artificial Intelligence (AI) and Machine Learning (ML) in industries like cloud, gaming and data center. The growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst. AMD provided strong 2022 guidance for revenues backed by robust growth across all businesses. Higher server and client processor revenues are likely to lead to a sequential increase. The Xilinx and Pensando acquisition will boost AMD's data center business. Alliances with Amazon, Microsoft, Baidu and JD.com augment business prospects. (You can read the full research report on AMD here >>>) Union Pacific shares have declined -0.5% over the past year against Zacks Transportation - Rail industry’s decline of -3.4%. Escalation in fuel costs as oil prices move north induced a 16% rise in the operating expenses in the March quarter. Costs are likely to be high in the June quarter as well. Detailed results will be out on Jul 21. High debt/EBITDA ratio is another worry. Increased capex may also be bothersome. However, the company’s efforts to reward its shareholders even in the current uncertain scenario please us. The company hiked dividend twice in 2021. In May 2022, UNP upped its quarterly dividend by a further 10%. The railroad operator is also active on the buyback front. Management expects share repurchases in 2022 to be in line with the 2021 levels of $7.3 billion. UNP's strong free cash flow generating ability supports its shareholder-friendly activities. An uptick in freight revenues as economic activities pick up the pace is an added positive. (You can read the full research report on Union Pacific here >>>) Other noteworthy reports we are featuring today include Novartis AG (NVS), Anheuser-Busch InBev SA/NV (BUD), and ServiceNow, Inc. (NOW). Sheraz Mian Director of Research Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Today's Must ReadJ&J (JNJ) Boasts a Solid PipelineAMD Banks on Strength in Product Portfolio & PartnershipsUnion Pacific's (UNP) Dividends Support, Cost Woes StingFeatured ReportsCosentyx, Entresto Fuel Novartis (NVS) Amid CompetitionPer the Zacks analyst, drugs like Cosentyx, Entresto, fuel Novartis' performance amid generic completion for older drugs and pipeline setbacks. Its generic arm Sandoz, returned to growth as well.Digital Investments Brighten AB InBev's (BUD) Growth ProspectsPer the Zacks analyst, AB InBev's investments in B2B platforms, e-commerce and digital marketing have been aiding growth. It is likely to rapidly grow its digital platform, like BEES and Ze Delivery.Growing Customer Base & Partnerships Aid ServiceNow (NOW)Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Also, strategic alliances with the likes of Microsoft are a tailwind.CME Group (CME) Futures Expansion Aids, Expenses Hurt Per the Zacks analyst, the company is well poised for growth with the expansion of futures products in emerging markets and OTC offerings. However, rising costs hurt its margins.International Growth Aids Illumina (ILMN), Rising Costs Ail The Zacks analyst is upbeat about Illumina's robust performance across the EMEA, the Asia Pacific and Japan regions. Yet, escalating operating expenses place significant pressure on its bottom line.Cheniere Partners (CQP) to Benefit From Growing LNG DemandPer the Zacks analyst, Cheniere Partners (CQP) is poised to capitalize on the rising LNG demand, which is expected to significantly increase over the next decade. Yet, higher debt exposure is concern.Pinterest (PINS) Rides on Holistic Growth to Expand User BasePer the Zacks analyst, Pinterest is likely to expand its user base with engaging content, simplified ad systems and the strategic buyout of AI-powered, high-tech fashion-shopping platform The Yes.New UpgradesStrong Storage, Data Center Demand Aids Iron Mountain (IRM)Per the Zacks analyst, Iron Mountain is poised to benefit from strong cash flows in the storage and records management business, its focus on data center business and a robust balance-sheet position.Cost Cuts, Defense Business Benefit Allegheny (ATI) Per the Zacks analyst, Allegheny will gain from strength in its defense business and its efforts to improve cost structure through cost-reduction initiatives.Kronos Worldwide (KRO) Gains on Higher TiO2 Demand, PricesPer the Zacks analyst, higher titanium dioxide (TiO2) demand will drive the company's sales volumes. Higher average TiO2 selling prices will also support its margins.New DowngradesReliance on Subsidiaries, Rivalry Ail National Fuel Gas (NFG)Per the Zacks analyst, National Fuel Gas will fail to meet obligations if its units contribute lower than expected, competition from peers and other clean energy providers can impact operation.Supply-Chain Woes Play Spoilsport for Acuity Brands (AYI)Per the Zacks analyst, rising costs from raw materials, electrical component supply chain interruptions and a significant escalation in freight costs are Acuity Brands' pressing margins.High Costs Likely to Hurt Darden's (DRI) PerformancePer the Zacks analyst, high costs and dismal traffic are likely to hurt the company's performance. For fiscal 2023, the company expects total inflation of 6% and commodities inflation of 7%. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report AnheuserBusch InBev SANV (BUD): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022

Is it Wise to Hold on to Regency Centers (REG) Stock Now?

Regency Centers (REG) is set to gain from its ownership of premium shopping centers and a solid balance sheet. Yet, the efforts of online retailers to go deeper into the grocery business pose a woe. Regency Centers Corp. REG is well-poised to gain from its well-located premium shopping centers in the affluent suburban areas and near urban trade areas, where consumers have high spending power. Also, a healthy balance-sheet position aids its growth.Regency focuses on building a premium portfolio of grocery-anchored shopping centers which are necessity driven by nature. This ensures that it enjoys dependable traffic. Also, its portfolio has a good tenant mix which helps it generate steady rental revenues. Moreover, with more people moving into the suburbs, Regency’s suburban-shopping-center portfolio is likely to be benefitted as the best-in-class operators are opening new locations in high-quality centers.Regency holds a high-quality open-air shopping center portfolio, with 80% grocery-anchored neighborhood and community centers. Further, REG’s focus on necessity, service, convenience and value retailers serving the essential needs of the communities provides it with an unequaled strategic advantage.To enhance its portfolio, REG has been undertaking acquisitions and developmental activities. During first-quarter 2022, it commenced more than $50 million of development and redevelopment projects and completed redevelopment projects with combined costs of approximately $9 million, each at the company’s share. As of Mar 31, 2022, Regency Centers’ in-process development and redevelopment projects had estimated net project costs of $348 million and an estimated $150 million of remaining costs to complete these projects, each at the company’s share. Given its prudent financial management, the company is well-poised to capitalize on growth opportunities.Further, Regency enjoys  financial flexibility and focuses on further strengthening its balance-sheet position. As of Mar 31, 2022, it had full capacity under its $1.2-billion revolving credit facility. REG has no unsecured debt maturities until 2024. It also enjoys a large pool of unencumbered assets providing it easy access to the secured and unsecured debt markets and maintaining availability on the line. Investment-grade credit ratings of BBB+/Baa1, with stable outlooks from S&P Global and Moody's, render the company favorable access to debt.Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The estimate revisions trend for 2022 funds from operations (FFO) per share indicates a favorable outlook for the company, as the same has moved 1.8% northward over the past month. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.However, over the recent years, the adoption of e-commerce by consumers has lowered the demand for the retail real estate space. Particularly, the recent effort of online retailers to go deeper into the grocery business has reduced the demand for physical stores and intensified competition. Owing to this, retailers are either opting for store closures or filing for bankruptcies, adding to REG’s concerns.Further, most of Regency’s properties are concentrated in select markets of California and Florida, which accounted for 28.2% and 22.1% of its 2021 net operating income (NOI) from consolidated properties and pro-rata share from unconsolidated properties, respectively. Thus, the geographic concentration of Regency’s properties exposes it to risks related to the supply of or demand for retail space, market saturation, the migration trend of businesses and residents, as well as climatic threats.Shares of REG have lost 16.7% in the past three months compared with the industry’s decline of 18.2%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks in the REIT sector are National Retail Properties NNN, Kite Realty Group Trust KRG and SITE Centers Corp. SITC.The Zacks Consensus Estimate for National Retail Properties’ 2022 FFO per share has moved 1.3% upward in the past month to $3.17. NNN presently carries a Zacks Rank of 2 (Buy).The Zacks Consensus Estimate for Kite Realty’s 2022 FFO per share has moved 1.1% upward in the past month to $1.80. KRG presently carries a Zacks Rank #2.The Zacks Consensus Estimate for SITE Centers' ongoing year’s FFO per share has been raised 1.8% over the past two months to $1.14. SITC carries a Zacks Rank #2, currently.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regency Centers Corporation (REG): Free Stock Analysis Report National Retail Properties (NNN): Free Stock Analysis Report Kite Realty Group Trust (KRG): Free Stock Analysis Report SITE CENTERS CORP. (SITC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022

Here"s Why You Should Retain Papa John"s (PZZA) Stock Now

Papa John's (PZZA) focus on partnerships and integrations of third-party delivery aggregators bode well. However, inflationary pressures are a concern. Papa John’s International, Inc. PZZA is likely to benefit from menu innovation, digital initiatives and robust comps growth. This and focus on developing and maintaining a strong franchise system bodes well. However, a decline in traffic from pre-pandemic levels and inflationary commodity pressures are a concern.Let’s discuss the factors highlighting why investors should retain the stock for the time being.Factors Driving GrowthPapa John’s continues to focus on product introduction to drive growth. Menu innovations like toasted handheld Papadias and Epics Stuffed Crust continue to witness solid popularity among customers, boosting the top line. Backed by better brand positioning, the new products have driven higher tickets and traffic across dayparts without cannibalizing core premium products and complicating operations at other stores. During first-quarter fiscal 2022, the company launched a New York Style pizza crust comprising larger slices and a thinner stretched crust. It also launched Epic Pepperoni Stuffed Crust (as an LTO). Following the launch, the company reported solid demand for the same. With significant LTO and long-term platform launches in the pipeline, the company anticipates menu innovation efforts to drive long-term ticket and transaction growth in the upcoming periods.Papa John’s invests in technology-driven initiatives like digital ordering to boost sales. The company’s online and digital marketing activities have increased significantly in the past several years, owing to the higher utilization of online and mobile web technology. PZZA is committed to providing a better customer experience with enhancements to the digital ordering process. The company’s loyalty program witnessed a rise in digital transactions during the first quarter of fiscal 2022. Larger transaction sizes and better targeting of offers and promotions have benefited the company. This and emphasis on partnerships and integrations of third-party delivery aggregators bode well. The company remains bullish on third-party delivery partnerships as the initiative paves the path for additional opportunities to meet delivery capacity at peak times and reach new customer segments.Papa John’s continues to impress investors with robust comparable sales growth. The company recorded positive comparable sales growth in first-quarter fiscal 2022, marking the 10th straight quarter of comps growth. It benefitted from initiatives related to menu innovation, strategic pricing actions and higher unit counts. In the fiscal first quarter, total comparable sales rose 1.6% year over year compared with growth of 25.4% reported in the prior-year quarter. Comps at North America restaurants increased 1.9% year over year compared with 26.2% growth reported in the year-ago quarter. Comps at international restaurants were up 0.8% year over year compared with a 23.2% increase reported in the prior-year quarter. Given the emphasis on multifaceted menu innovation strategy and digital innovation, the company anticipates the momentum to continue in the near term.Papa John’s is committed to developing and maintaining a strong franchise system. The company strives to eliminate barriers to expanding in existing international markets and identifying new market opportunities. In August 2021, the company expanded its partnership with Drake Food Service International to open more than 220 Papa John’s restaurants by 2025. This includes more than 170 stores across Latin America, Spain and Portugal. The company signed a development deal with Sun Holdings (in September 2021) to open 100 new stores across Texas and the South by 2029. The company announced a partnership with FountainVest Partners (in January 2022) to open more than 1,350 new stores across South China by 2040. Backed by its accelerated development plan, the company anticipates opening 260-300 net new restaurants globally in fiscal 2022. This suggests approximately 5% growth in its system for the year. The company expects its worldwide net unit (from fiscal 2023 through 2025) to grow in the range of 6-8% annually. We believe re-franchising a large chunk of its system reduces a company’s capital requirements and facilitates earnings per share growth and ROE expansion.ConcernsImage Source: Zacks Investment ResearchShares of Papa John's have declined 37.3% so far this year compared with the industry’s fall of 19.8%. The dismal performance was caused by the coronavirus crisis. Pandemic-induced restrictions, labor challenges and supply chain disruptions have taken a toll on the company. Although most dining services are open, traffic is still low compared with pre-pandemic levels. The company intends to monitor the situation regularly to gauge the impacts of COVID-19.Papa John's is continuously shouldering increased expenses, which are detrimental to margins. It has been facing significant supply-chain challenges and inflation across most commodities and categories. This resulted in cost pressure in the third quarter of fiscal 2021, including costs related to strategic staffing initiatives. New hiring, referral and appreciation bonuses added to the woes. During the first quarter of fiscal 2022, total costs and expenses amounted to $517.1 million, up 11.2% from the prior-year quarter’s level. The company anticipates commodities and labor headwinds to continue in the near term.Zacks Rank & Key PicksPapa John's currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some better-ranked stocks in the Zacks Retail-Wholesale sector are Dollar Tree Inc. DLTR, BBQ Holdings, Inc. BBQ and Arcos Dorados Holdings Inc. ARCO.Dollar Tree sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 13.1%, on average. Shares of the company have gained 52.8% in the past year.The Zacks Consensus Estimate for Dollar Tree’s 2022 sales and EPS suggests growth of 6.7% and 40.5%, respectively, from the year-ago period’s levels.BBQ Holdings carries a Zacks Rank #2 (Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have decreased 35.3% in the past year.The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 46.1% and 67.6%, respectively, from the year-ago period’s levels.Arcos Dorados carries a Zacks Rank #2. Arcos Dorados has a long-term earnings growth of 34.4%. Shares of the company have risen 14.5% in the past year.The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 83.3%, respectively, from the year-ago period’s levels. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report Papa John's International, Inc. (PZZA): Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis Report BBQ Holdings, Inc. (BBQ): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksJun 27th, 2022

CoStar (CSGP) Soars 5.8%: Is Further Upside Left in the Stock?

CoStar (CSGP) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term. CoStar Group (CSGP) shares rallied 5.8% in the last trading session to close at $62.85. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0% gain over the past four weeks.The recent surge in the company’s share price comes right after CoStar Group owned Apartments.Com launched Listing of the Future which is a new approach to listing apartments.  The company is heavily investing in its advertisments and brand promotions even amidst rising inflation which is increasing traffic from renters on its online platform compared to its competitors. This will positively drive top line growth and further impact shareholders wealth positively.This commercial real estate information and marketing provider is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -19.2%. Revenues are expected to be $532 million, up 10.8% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For CoStar, the consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CSGP going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>CoStar is a member of the Zacks Computers - IT Services industry. One other stock in the same industry, Upstart Holdings, Inc. (UPST), finished the last trading session 5.7% higher at $40.95. UPST has returned -10.1% over the past month.For Upstart Holdings, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.28. This represents a change of -54.8% from what the company reported a year ago. Upstart Holdings, Inc. currently has a Zacks Rank of #3 (Hold). Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CoStar Group, Inc. (CSGP): Free Stock Analysis Report Upstart Holdings, Inc. (UPST): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksJun 27th, 2022

Yelp (YELP) Embraces Remote Work Culture, Closes 3 U.S Offices

Yelp (YELP) closes offices located in Chicago, Washington and New York and accelerates its fully remote working policy. Yelp Inc. YELP recently announced that the company would completely exit three of its existing United States-based offices effective from Jul 29. Yelp will shut its offices in Chicago, Washington and New York on the grounds of the fact that these offices remain “most consistently underutilized.”The online business search, review and recommendation service provider intends to take a step toward a fully remote work environment through this move. Yelp currently has offices across six U.S cities which are located in San Francisco, New York City, Chicago, Washington, Phoenix, and Scottsdale. The company also has offices outside the United States in Toronto, London, Dublin and Hamburg City. All of these offices will, however, remain open.Yelp's CEO, Stopppleman, mentioned that the future of work at Yelp is remote. He pointed out that remote working, on one side, aids employees reduce their costs of living in expensive cities while, on the other side, preventing companies from losing their workspaces.Technically, a remote work setup supports work from anywhere approach, which offers employees an immense amount of flexibility. With this availability, employees can work anytime from anywhere, be it at home or a restaurant. Recently, many top-notch companies have adapted to this environment.Yelp Inc. Price and Consensus Yelp Inc. price-consensus-chart | Yelp Inc. QuoteIn 2021, one of the big five American technology giants, Meta Platforms META, allowed its employees to opt to work from home on a permanent basis. Before that, in 2020, the Australian software company, Atlassian TEAM, began allowing its employees to work from home or anywhere else permanently.While Meta is allowing workers whose jobs can be performed remotely to adapt to its remote work policy, Atlassian has stated that even when COVID-19 restrictions loosen, employees are no more required to visit offices.Zacks Rank & A Key PickYelp, Meta and Atlassian currently carry a Zacks Rank #3 (Hold). Shares of YELP, META and TEAM have plunged 25.1%, 52.2% and 22%, respectively, in the past year.A better-ranked stock from the broader Computer and Technology sector is Axcelis Technologies ACLS flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Axcelis’ second-quarter 2022 earnings has been revised upward by 3 cents to 99 cents per share over the past 60 days. For 2022, earnings estimates have moved 41 cents north to $4.40 per share in the past 60 days.Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.5%. Shares of ACLS have climbed 43.3% in the past year. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report Yelp Inc. (YELP): Free Stock Analysis Report Atlassian Corporation PLC (TEAM): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022

TD SYNNEX"s (SNX) Tech Data & Instructure Tie Up for LMS

Per the latest agreement, TD SYNNEX's (SNX) Tech Data partners with Utah-based educational technology company Instructure for LMS solutions. TD SYNNEX's SNX Tech Data announced that it has entered a partnership with Salt Lake City-based Learning Management Systems ("LMS") developer — Instructure INST — to leverage enhanced learning solutions in India.Founded in 2008, the education technology company is the developer of Canvas and Mastery Connect, an assessment management system. The company designs the world’s smartest classrooms and has a customer base of more than 6,000 globally. It has over 6 million concurrent users, while its products are utilized by nearly 7,000 organizations globally.Through the latest partnership, Tech Data intends to ensure ground-level support and assistance among its Indian partners. Per the deal, Instructure will utilize Tech Data’s extensive network of partners and expertise in the local Indian market to offer Canvas solutions to the subcontinent’s education sector.Instructure’s Learning Platform includes solutions like Canvas and Impact that offer learning management, assessment, content, online programs, and analytics designed into an easy-to-implement and use system. The company’s Canvas portfolio comprises Canvas LMS, video engagement with Canvas Studio, and a branded course catalog system by Canvas Catalog. The company’s Impact solution is built to help teachers and students adopt educational technology to promote deeper engagement with learning.TD SYNNEX Corp. Price and Consensus TD SYNNEX Corp. price-consensus-chart | TD SYNNEX Corp. QuoteTD SYNNEX will enable its partner educational institutions and corporations to utilize Canvas, the fastest growing LMS platform in the world, through this deal. Lately, the company has entered into several other partnerships with various companies. Such partnerships are undoubtedly helping the company to expand its product portfolio.In fact, the company forged a partnership with the largest independent publicly-traded business intelligence company, MicroStrategy MSTR, in the North American region in January this year.Through this contract, TD SYNNEX has enhanced its portfolio of Internet of Things, data, and analytics solutions. MicroStrategy’s comprehensive software platform included features like self-service data discovery, enterprise reporting, mobile applications, and embedded analytics. These features enabled TD SYNNEX’s partners to offer end-to-end enterprise analytics driving end-user adoption and meeting data-driven business culture demand.In the same month, the company entered a strategic collaboration agreement with Amazon’s AMZN subsidiary, Amazon Web Services (“AWS”), to invest in resources that will help in developing advanced cloud solutions for its partners.This agreement enabled TD SYNNEX partners, including small and medium-sized businesses, public sector organizations, and individual software vendors, to get an improved international exposure to sell their newly developed offerings integrated with Amazon’s AWS advanced cloud technology.Zacks RankTD SYNNEX and Instructure currently carry a Zacks Rank #3 (Hold), while MicroStrategy and Amazon carry a Zacks Rank of 5 (Strong Sell). Shares of SNX, AMZN and MSTR have slumped 22%, 32.3% and 67.1%, respectively, in the past year. Shares of INST have climbed 6.9% in the same time frame.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report TD SYNNEX Corp. (SNX): Free Stock Analysis Report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Instructure Holdings, Inc. (INST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022

Newell (NWL) Looks Well-Placed on Strong Demand & Innovation

Newell (NWL) looks promising on the back of robust demand, product innovation and solid online show despite inflation and supply-chain headwinds. Newell Brands NWL has been gaining from solid demand, product innovation and robust core sales growth. This, along with a solid e-commerce business, remains a key growth driver.The company has been on track to leverage its robust e-commerce capabilities, which have remained strong for some time now. It continues to strengthen its e-commerce business via increased investments and better customer engagement. Newell’s earlier launched “buy online and pick up in stores” and “ship from store” services in its Yankee Candle retail stores have been doing well. Going forward, management expects further digital penetration, driven by expanded omni-channel capabilities.Continued improvements in the Writing business, driven by product innovation and strength in the Sharpie and Paper Mate brands, bode well. Newell witnessed improvements in the Writing business in first-quarter 2022, driven by some accelerated back-to-school orders. Consequently, the Writing business looks well-positioned for growth in 2022. Management remains optimistic about the next back-to-school season on the back of robust merchandising plans to meet demand. The company also remains focused on product innovations in this category, with a number of products to be launched later this year.Driven by these factors, this Zacks Rank #3 (Hold) stock posted impressive first-quarter 2022 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and grew year over year. Net sales grew 4.4% year over year, driven by core sales growth of 6.9%, as five of the seven business units witnessed higher core sales. This marked the seventh successive quarter of core sales growth. Also, the bottom line beat earnings estimates for the 11th straight quarter.Management issued an upbeat view for the second quarter and 2022. The company anticipates net sales of $9.93-$10.13 billion for 2022, with core sales of flat to up 2%. The normalized operating margin is expected to be 11.5-11.8%. Normalized earnings per share are forecast to be $1.85-$1.93 for 2022.For second-quarter 2022, net sales are envisioned to be $2.52-$2.57 billion, with core sales growth in the low-single digits. For the quarter, the company expects a normalized operating margin of 11.7-12.1% and normalized earnings of 45-48 cents per share. Image Source: Zacks Investment Research We note that shares of NWL have lost 6.4% year to date compared with the industry’s decline of 20.9%.Despite these upsides, the company has been witnessing elevated advertising and promotional expenses related to product launches and omni-channel investments. Ongoing inflationary pressures, mainly related to resin, sourced finished goods, transportation and labor costs, remain concerning. The company also remains exposed to industry-wide supply-chain disruptions, including port congestion, limited container availability, and shortage of labor and truck drivers.Wrapping UpNewell Brands appears to be a solid bet, backed by tailwinds, including product innovation, robust demand and a solid online show. Earnings estimates for the current financial year have increased 1.1% to $1.92 over the past 60 days.Stocks to ConsiderHere are three better-ranked stocks to consider — Dillard’s DDS, Boot Barn Holdings BOOT and Canada Goose GOOS.Dillard’s operates as a departmental store chain, featuring fashion apparel and home furnishings. It presently sports a Zacks Rank #1 (Strong Buy). DDS has a trailing four-quarter earnings surprise of 224.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Dillard’s current financial-year sales suggests growth of 6.1%, while the same for EPS indicates a decline of 33.9% from the year-ago period’s reported numbers. DDS has an expected EPS growth rate of 12.6% for three-five years.Boot Barn, which provides western and work-related footwear, apparel and accessories, currently has a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 25.2%, on average.The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 17% and 4.4%, respectively, from the year-ago period’s reported figures. BOOT has an expected EPS growth rate of 20% for three-five years.Canada Goose is the designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It currently carries a Zacks Rank #2. GOOS has a trailing four-quarter earnings surprise of 65.9%, on average.The Zacks Consensus Estimate for Canada Goose’s current financial year’s EPS suggests growth of 64.4% from the year-ago period’s reported figures. GOOS has an expected EPS growth rate of 27.4% for three-five years. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022

Consol Energy (CEIX) Moves 6.4% Higher: Will This Strength Last?

Consol Energy (CEIX) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term. Consol Energy (CEIX) shares rallied 6.4% in the last trading session to close at $50.20. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.2% loss over the past four weeks.CONSOL Energy enjoys the benefit from hike in coal prices, strong production volumes, proper cost management and higher demand for coal from domestic and international customers. Courtesy of improving demand, the company has been able to secure additional coal sales contracts and remain fully-contracted for 2022 and have increased 2023 sold position to 16.3 million tons. CONSOL Energy’s Itmann metallurgical coal project is expected come online during second half of 2022, which will further boost production volumes.Courtesy of strong performance the company continued with debt repurchases and strengthened its balance sheet. CONSOL Energy further strengthened its balance sheet by making a total debt repayment and repurchase of $38.5 million during the first-quarter of 2022.This coal company is expected to post quarterly earnings of $1.99 per share in its upcoming report, which represents a year-over-year change of +243.1%. Revenues are expected to be $433.2 million, up 50.9% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Consol Energy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CEIX going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Consol Energy is a member of the Zacks Coal industry. One other stock in the same industry, SunCoke Energy (SXC), finished the last trading session 3% higher at $6.87. SXC has returned -20% over the past month.SunCoke's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.26. Compared to the company's year-ago EPS, this represents a change of +62.5%. SunCoke currently boasts a Zacks Rank of #3 (Hold). Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Consol Energy Inc. (CEIX): Free Stock Analysis Report SunCoke Energy, Inc. (SXC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022

2 Stocks to Watch From the Challenging Computer Industry

The Computer- Mini Computers industry is suffering from massive supply chain and logistical issues as well as geopolitical challenges. However, strong demand for laptops and tablets bodes well for Apple (AAPL)and HP (HPQ). The Zacks Computer – Mini Computers industry is suffering from massive supply chain and logistical issues, along with several pandemic-related and geopolitical challenges, including the ongoing Russia-Ukraine war. However, the coronavirus outbreak has been beneficial for industry participants like Apple AAPL and HP HPQ. Despite massive supply chain disruption, the ongoing work-from-home and online-learning waves have been beneficial for them. Strong demand for high-end laptops and smartphones, particularly the availability of 5G-supported iPhones, has been a key catalyst. Further, the launch of foldable as well as AI and ML-infused smartphones, tablets, wearables and hearables is a major growth driver for the industry participants.Industry DescriptionThe Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or on Google Chrome and Android operating systems. They predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung. Expanding screen size, better display and enhanced storage capabilities have been key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving demand for wearables.3 Mini Computer Industry Trends to Watch Out ForBring Your Own Device (BYOD) Aids Momentum: The industry is benefiting from the rapid adoption of BYOD in workplaces. Enterprises practicing BYOD allow employees to use their personal devices, including mobiles, laptops and tablets, for work purposes. BYOD helps in bridging communication gaps between remote workers and desk-bound employees, thereby improving process management and workflow. Moreover, BYOD has proved more productive as it lowers training time. Moreover, the coronavirus-induced remote working and online learning model bode well for industry participants as demand is expected to increase for desktops and laptops.Impressive Formfactor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm (Snapdragon-branded), NVIDIA (Tegra X1), Apple (A14 Bionic) and Samsung (Exynos 9609). Moreover, improved Internet penetration and speed along with the evolution of mobile apps have made smartphones indispensable for consumers. Further, the improved graphics quality is making smartphones suitable for playing games like PUBG and Fortnite. This is expected to boost demand for high-end smartphones and open up significant opportunities for device makers.PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalyst in expanding the total addressable market (TAM) of the PCs.Zacks Industry Rank Indicates Dim ProspectsThe Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #224, which places it in the bottom 10% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates bearish near-term prospects. Our research shows that the top 50% of Zacks-ranked industries outperforms the bottom 50% by a factor of more than two to one.The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic on this group’s earnings growth potential. Since Jul 31, 2021, the Zacks Consensus Estimate for this industry’s 2022 earnings has moved down 3.7%.Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.Industry Outperforms Sector and S&P 500The Zacks Computer – Mini Computers industry has outperformed the broader Zacks Computer And Technology sector as well as the S&P 500 index over the past year.The industry has returned 5.7% over this period against the S&P 500’s decline of 9.4% and the broader sector’s fall of 24.7%.One-Year Price PerformanceIndustry's Current Valuation On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 21.32X compared with the S&P 500’s 16.77X and the sector’s 20.14X.Over the last five years, the industry has traded as high as 28.99X, as low as 21.32X and at the median of 24.98X, as the chart below shows.Forward 12-Month Price-to-Earnings (P/E) Ratio2 Computer Stocks to Watch Right NowApple: This Zacks Rank #3 (Hold) company is benefiting from continued momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Apple’s near-term prospects are driven by the availability of the new Mac Studio and iPad Air. Apple TV+ is gaining recognition due to its award-winning shows. This bodes well for the Services segment. Services revenue growth is expected to be in strong double digits for the June quarter.Apple currently has more than 825 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping the company offer appealing new apps that drive App Store traffic. Further, a growing number of AI-infused apps will attract more subscribers to App Store.The Zacks Consensus Estimate for fiscal 2022 earnings has been steady at $6.11 per share over the past 30 days. The stock has lost 20.2% year to date.Price and Consensus: AAPL HP: This Zacks Rank #3 company is benefiting from solid demand for PCs amid the pandemic-led remote-working and online-learning waves.Furthermore, stringent cost-control measures are expected to drive margin over the long run. HP’s expectation of returning at least $4 billion to shareholders in fiscal 2022 is encouraging.The Zacks Consensus Estimate for fiscal 2022 earnings has risen 1.4% to $4.31 per share over the past 30 days. The stock has lost 6.4% year to date.Price and Consensus: HPQ  Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report HP Inc. (HPQ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJun 27th, 2022