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While the US markets zoom, it looks like most of the global markets are tanking, with numerous countries down 2-3%, especially in Europe. But beyond Trump's proposed 10% tariff on European imports, having the Ukraine war ended should be a big plus for Europe.
Some regions / countries are up today, including Israel, India, Turkey, Vietnam, Qatar, UAE, Saudi Arabia, Argentina, Kuwait.
https://seekingalpha.com/etfs-and-funds/etf-tables/countries
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>>> Allegion plc (ALLE) manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door controls and systems and exit devices; locks, locksets, portable locks, and key systems and services; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors, accessories, and other. It also provides services and software, which includes inspection, maintenance, and repair services for its automatic entrance solutions; and software as a service, including access control, IoT integration, and workforce management solutions, as well as aftermarket services, design and installation offerings, and locksmith services.
The company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, retail, commercial office, and single and multi-family residential markets under the CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin brands.
It sells its products and solutions through distribution and retail channels, such as specialty distribution, e-commerce, and wholesalers, as well as through various retail channels comprising do-it-yourself home improvement centers, online and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.
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https://finance.yahoo.com/quote/ALLE/profile/
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>>> A Week of Shock and Awe Ignites China’s Stock Markets
The Wall Street Journal
by Rebecca Feng, Jason Douglas
9-30-24
https://www.msn.com/en-us/money/markets/a-week-of-shock-and-awe-ignites-china-s-stock-markets/ar-AA1rr3gi?cvid=dfdee113fba5454bde0c227ee27e33a1&ei=72
It is too early to tell if China’s weeklong blizzard of stimulus will reignite flickering growth. But its impact is already unmistakable in one corner of the economy: Red-hot stock markets.
Some $143 billion worth of stocks changed hands in 35 minutes of fevered trading in Shanghai, Shenzhen and Beijing on Monday—the shortest-ever span of time in which stock trading hit the one-trillion yuan mark in the country’s history.
China’s benchmark CSI 300 index has soared 25% since the country’s central bank unleashed the first wave of easing measures on Tuesday last week, erasing the previous nearly 14 months’ losses in the span of five trading sessions. In the southern Chinese city of Shenzhen, the technology-focused ChiNext index rocketed up 15.4% on Monday, its largest single-day rise since the index came into existence in 2010.
The stock-market frenzy follows an extraordinary week for the Chinese economy. After months of drip-feeding tiny doses of policy support into an ailing economy crying out for major surgery, China’s top leadership relented. Volley after volley of growth-friendly pledges were announced in a daily staccato, with officials pledging more to come if needed. The blast of stimulus—and the epic rally it set off—came on the eve of a seven-day holiday marking the 75th anniversary of the founding of the People’s Republic.
Yet the big question is whether stock investors’ euphoria will be matched by a durable turnaround in China’s struggling economy. Official and private surveys of economic activity released Monday underscored the challenge: Manufacturers reported a fifth straight month of shrinking activity, adding to a run of downbeat data that economists say explains the government’s sudden jolt into action.
“Policy has moved into an emergency mode,” said Larry Hu, chief China economist at Macquarie.
Uncertainty over whether the stock-market rally will be followed by a similarly impressive economic revival springs from still-unanswered questions about just how much support Beijing is preparing to pump into the economy.
Though officials pledged more fiscal spending, they haven’t yet put a number on it, or offered much in the way of specifics. They promised to stabilize the property sector, but analysts say the details announced so far don’t come close to achieving that.
The larger worry, some economists say, is that authorities do enough to lift growth toward their official growth target of around 5% for this year—but not enough to drive a lasting recovery and see off the threat of persistent deflation.
“There is a danger that hope rather than facts are leading the market,” said Nick Borst, director of China research at Seafarer Capital Partners, a California asset manager focused on emerging markets.
In the blizzard of policy moves announced in China in the past week, the biggest slice of the action so far came from the People’s Bank of China. The central bank’s governor, Pan Gongsheng, on Tuesday last week announced plans to cut a bevy of interest rates and shove billions of yuan into the stock market—with pledges of billions more to come, if necessary.
On Thursday, the readout of a meeting of the Communist Party’s top decision-making body, chaired by leader Xi Jinping, showed that officials unexpectedly devoted their September meeting to scrutinizing the economy. Economics is typically discussed during its April, July and December meetings, providing a hint of the seriousness with which officials are now looking upon the economic malaise. The readout from the meeting was short on detail, but pledged more fiscal and monetary support for the economy and more action to stabilize the property sector, in crisis since 2021.
The measures kept coming. On Sunday evening, the government said it would lower down payments for second homes and allow existing homeowners to refinance their mortgages at lower interest rates, which although common in the U.S. is difficult in China.
Some big cities followed up with their own real-estate measures. The southern manufacturing hub of Guangzhou said Sunday that it would remove all remaining restrictions on home purchases, while Shanghai and Shenzhen, two of China’s biggest and wealthiest cities, said they would allow more people to buy homes and relax quotas on purchases in suburban areas.
The result of this policy blitz: Trading in stocks exploded, again, on Monday, while in Shenzhen, the local housing bureau pointed to apartments in a new affordable-housing project selling out in eight hours.
By the end of the day Monday, the value of stocks traded in China’s domestic stock market had reached $372 billion, the highest single-day total ever.
Of the five major stock-market rallies in China in the past quarter-century, three were powered by stimulus. Stocks during those episodes notched trough-to-peak gains of between 50% and 100%, suggesting this rally could have much further to run if policymakers follow through with meaningful stimulus and property-market support, Thomas Gatley, China strategist at Gavekal Dragonomics, wrote in a report Monday.
A surging stock market could help perk up consumers and stimulate growth, said Tommy Xie, OCBC Bank’s head of Greater China research and strategy. “What has excited markets even more is China’s recognition of the interconnectedness between capital markets and economic recovery,” he said.
Property stocks were some of the biggest gainers. Hong Kong-listed shares of Kaisa Group, Sunac China Holdings, and Fantasia Holdings, all of which have defaulted on their debts, surged 83%, 55% and 38%, respectively. More than a dozen other defaulted developers also saw their shares climb by 10% or more, according to data provider Wind.
The euphoria around bank stocks was much more restrained, as fresh policies such as lowering mortgage rates and cutting interest rates threaten to further erode profit margins. Shanghai-listed shares of the country’s largest four banks edged up by between 2% and 4%.
Then, there are the remaining concerns around China’s economic fundamentals. In addition to the fifth straight month of manufacturing-sector contraction, the official purchasing managers index also showed export orders weakening and surveyed firms signaling continued caution on hiring.
A parallel measure of activity in the services sector slid into contraction in September, offering another sign of faltering consumer sentiment. Recent data had shown slowing growth in retail sales.
Economists say Beijing needs to offer more details on its fiscal policy plans to assess whether stimulus plans will amount to much. Interest-rate cuts are welcome, they say, but data and surveys suggest many households and businesses are still reluctant to borrow, muffling the intended effects of central bank easing measures.
Robin Xing, chief China economist at Morgan Stanley, told clients in a note Sunday that he expects officials to announce a supplementary budget in October, in which he expects Beijing will pencil in another 1 trillion to 2 trillion yuan, equivalent to $143 billion to $285 billion, worth of spending focused on supporting consumption and local governments’ stretched finances.
But Xing added that officials face “a long drawn-out battle” to get inflation up and growth back on a sustainable path.
Beijing’s main response to the slowdown so far has been to funnel investment into factories. The resulting pickup in production has hammered prices and profits and fueled trade tensions overseas, where many countries are growing alarmed at a wave of cut-price Chinese imports squeezing homegrown industries.
And even after the latest announcements on real estate, the sector remains a severe drag on China’s economy. Economists say Beijing still needs to do more to clear a backlog of unfinished homes that have already been paid for if consumer confidence is to return.
“Amid all the euphoria, the structural issues are still there,” said Rory Green, chief China economist at GlobalData TS Lombard in London.
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>>> China’s deflationary spiral is now entering dangerous new stage
Bloomberg News
Sep 9, 2024
https://finance.yahoo.com/news/china-deflationary-spiral-now-entering-103006274.html
(Bloomberg) — Deflation stalking China since last year is now showing signs of spiraling, threatening to worsen the outlook for the world’s second-largest economy and raising calls for immediate policy action.
Data released Monday confirmed that apart from food costs, consumer price growth barely registered in large swathes of the economy at a time when incomes are sagging.
A broader measure of economy-wide prices known as the gross domestic product deflator will likely extend its current five-quarter drop into 2025, according to Bloomberg Economics and analysts at banks including BNP Paribas SA. That would amount to China’s longest streak of deflation since data began in 1993.
“We are definitely in deflation and probably going through the second stage of deflation,” said Robin Xing, chief China economist at Morgan Stanley, citing evidence from wage decreases. “Experience from Japan suggests that the longer deflation drags on, the more stimulus China will eventually need to break the debt-deflation challenge.”
The danger for China is deflation could snowball by encouraging households reeling from falling paychecks to cut back on spending, or delay purchases because they expect prices to fall further. Corporate revenues will suffer, stifling investment and leading to further salary cuts and layoffs, bankrupting families and firms.
Private surveys show that’s already starting to happen. In sectors of the economy favored by the government — such as electric vehicle-manufacturing and renewables — entry-level salaries declined by almost 10% in August from a peak in 2022, according to findings by Caixin Insight Group and Business Big Data Co.
A survey of 300 company executives by the Cheung Kong Graduate School of Business showed growth in labor costs last month was the weakest since April 2020, when China’s initial Covid lockdowns began to ease.
Separate data from Zhaopin Ltd. shows average hiring salaries in 38 major cities barely changed in the second quarter, in contrast to the 5% growth seen in the two years before the pandemic.
It’s a cycle the world has seen before in Japan starting in the 1990s during a period that came to be known as its “lost decades” — when a grinding stagnation followed a burst bubble in real estate and financial markets.
While Chinese officials have sought to stifle discussion about deflation, warning analysts to avoid using the term, it’s beginning to enter public dialogue. Former central bank Governor Yi Gang last week said rooting out deflation has to take priority for policymakers, a rare admission by a prominent figure in China that falling prices are threatening the outlook.
Yi called for “proactive fiscal policy and accommodative monetary policy” and said officials “should focus on fighting deflationary pressure,” at a panel discussion at the Bund Summit in Shanghai on Friday. China’s immediate goal should be to turn its GDP deflator positive in the coming quarters, he said.
So far, officials have given no sign of any significant shift from their cure-all of encouraging production rather than addressing weak demand with steps such as greater government spending on public services and consumer subsidies.
In a sign price pressures are becoming even more subdued, China’s core inflation — which strips out volatile items such as food and energy — cooled in August to the weakest in more than three years. Expectations for deflation are spilling into markets, stoking a bond rally that’s sent yields to record lows and stoked official concerns that banks have become too exposed to interest-rate risks.
The weak price pressures are evident in the growth pace of China’s nominal GDP, which expanded just 4% in the second quarter — well under the nation’s real economic growth goal of around 5% this year.
At times of weak price gains, nominal expansion is a more useful indicator because it better reflects changes in wages, profits and government revenue, Luo Zhiheng, chief economist at Yuekai Securities Co., wrote in a note earlier this month.
For Jack Liu, a 37-year-old sales engineer of aluminum products in southern China, the impact hit home after realizing he no longer ordered extra eggs at breakfasts.
Plummeting market demand forced his company to cut prices and sell at a loss last year. That slashed his income to less than a 10th of what once exceeded 1 million yuan ($141,000), making mortgage payments a struggle.
“The country doesn’t admit there’s deflation,” said Liu, who lives in Foshan in Guangdong province. He has a modest following of 1,100 people on the Instagram-like Xiaohongshu, where he warns regularly about the danger of deflation.
The speed of the deterioration in China’s price outlook has taken the market by surprise.
Inflation was weaker than forecast in three of the past four months, growing just 0.6% in August — an increase due largely to a 2.8% pickup in food prices. Core inflation last month rose just 0.3% to remain below 1% for an 18th month.
Underscoring the drag on inflation, producer prices have been falling since late 2022. Manufacturers’ raw material and selling prices both contracted for the second month in August, official data shows, while charges by services and construction companies shrank at the fastest pace since April 2020.
The dilemma is that even monetary expansion in China could be deflationary by being mainly directed at the supply side of the economy, Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace, wrote in an article last month.
Meanwhile, the deflationary mindset is starting to take hold. Consumer confidence is hovering at a record low, and households report a growing willingness to save instead of spending or buying homes.
For Liu, the aluminum industry worker, as the pain deepens, the solution lies with policymakers in Beijing. “The government needs to at least take some concrete measures,” he said, “to lift consumption and improve people’s expectations.”
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>>> RELX PLC (RELX), together with its subsidiaries, provides information-based analytics and decision tools for professional and business customers in North America, Europe, and internationally. It operates through four segments: Risk; Scientific, Technical & Medical; Legal; and Exhibitions. The Risk segment offers information-based analytics and decision tools that combine public and industry specific content with technology and algorithms to assist clients in evaluating and predicting risk. The Scientific, Technical & Medical segment provides information and data sets that help researchers and healthcare professionals to advance science and health outcomes. The Legal segment provides legal, regulatory, and business information and analytics that help customers in decision-making, as well as increases the productivity. The Exhibitions segment is involved in the business that combines face-to-face with data and digital tools to help customers learn about markets, source products, and complete transactions. The company was formerly known as Reed Elsevier PLC and changed its name to RELX PLC in July 2015. RELX PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.
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>>> Everything China is Doing to Rescue Its Battered Stock Market
Bloomberg News
Feb 7, 2024
https://finance.yahoo.com/news/everything-china-doing-rescue-battered-083645073.html
(Bloomberg) -- Chinese stocks have staged a nascent recovery from a $7 trillion rout, thanks to intensifying rescue efforts as authorities seek to prevent the market from slumping for a fourth straight year.
The benchmark CSI 300 Index has gained 5.2% so far this week. The rebound came after a quickening drumbeat of policy support, which included replacing the market regulator and wider trading curbs as well as state buying of major bank stocks. News that regulators planned to brief President Xi Jinping on markets also fueled optimism.
Chinese leaders are under mounting pressure to act more resolutely to end a stock-market meltdown that risks undermining financial and social stability, at a time when the economy is mired in worsening housing woes and persistent deflationary pressures. Authorities also appear keen to prevent a weak market from further dampening already anemic consumption as China enters the Lunar New Year holiday week.
Here’s a list of measures that have either been announced or reported on to start the year as China seeks to aid the economy and calm investors.
Feb. 7:
In a surprise move after markets had closed for the day, Beijing replaced the head of its securities regulator. Wu Qing, a banking and regulation veteran who earned the reputation as “the broker butcher” when he led a crackdown on traders in the mid-2000s, is replacing Yi Huiman as chairman and party chief of the China Securities Regulatory Commission, according to the official Xinhua News Agency.
Feb. 6:
Funding Support for Developers
China’s financial regulator calls for further, prompt implementation of a financing coordination mechanism to support developers at a meeting, according to a statement.
Regulators Plan to Brief Xi
Regulators plan to brief President Xi Jinping on the market as soon as Tuesday, Bloomberg News reported. While it’s unclear whether any new support measures will come out of the Xi meeting, traders are hoping this time will be different.
Sovereign Wealth Fund Pledges Support
Central Huijin Investment Ltd., the unit that holds Chinese government stakes in big financial institutions, said it will buy more exchange-traded funds. The securities regulator vowed in a follow-up comment to maintain stable market operations, adding that authorities will continue to guide various institutional investors and funds to enter the market with greater efforts.
M&A and Restructuring Support
China will strongly support listed companies to enhance their investment value through mergers, acquisitions and restructuring, the China Securities Regulatory Commission said in a statement.
‘National Team’ Buying Shares
The so-called national team has bought roughly 70 billion yuan ($9.7 billion) of onshore Chinese shares in the past month, according to estimates by Goldman Sachs, adding that 200 billion yuan or ~0.8% of free float market capitalization is needed to stabilize the market.
The national team refers to a group of Chinese state funds tasked to support markets. Meantime, overseas investors, which may include offshore proxies for such state funds, bought another 1.7 billion yuan of mainland stocks via trading links with Hong Kong Wednesday, marking the seventh consecutive session of inflows.
Read more: China’s Small-Cap Crash Shows What Happens Without Market Rescue
Restricting Sales
China is tightening trading restrictions on domestic institutional investors as well as some offshore units as authorities fight to stem a deepening stock rout, according to people familiar with the matter.
Officials this week imposed caps on some brokerages’ cross-border total return swaps with clients, limiting a channel that can be used by China-based investors to short Hong Kong stocks, said the people, asking not to be identified discussing a private matter. At the same time, some Chinese brokers that use the channel to buy mainland shares for their offshore units were told not to reduce their positions, the people said.
Read more: China Widens Stock Trading Curbs on Quants, Offshore Units
Feb. 5:
Monetary Stimulus
Beijing added about 1 trillion yuan into markets Monday with the previously announced cut to banks’ reserve requirement ratio taking effect. That has helped keep cash ample, with money markets showing few signs of stress.
Regulators Check in With Listed Firms
China’s regulatory officials visited listed companies in 20 provinces and municipalities from Jan. 29-Feb. 4, according to a statement from China Securities Regulatory Commission. Regulators are accelerating their process to solve issues raised by listed companies on taxation policy, financing, land, imports and exports, as well as intellectual property right protection.
Help for Home Builders
Cash-strapped Chinese property developers said a range of their housing projects have been listed as eligible for funding under the latest program to support the ailing sector. The flurry of activity comes just three weeks after Beijing urged local authorities to draft a list of projects eligible for funding. Policymakers want risk-averse banks to step up lending to the real estate sector, which saw credit growth slow to the weakest in more than a year last quarter, undermining developers’ ability to complete homes.
Promise to Deal with Margin Call Risks
China stock traders are unwinding their margin debt rapidly, underscoring how a prolonged selloff may be leading to some forced share liquidation. In response, the securities regulator said it will guide brokerages to adjust their margin call levels and maintain “flexible” liquidation lines in an effort to reduce pressure from forced selling of pledged shares.
Feb. 4:
Regulator Vows to Prevent ‘Abnormal Fluctuations’
The China Securities Regulatory Commission vowed on Sunday to prevent abnormal fluctuations, saying it would guide more medium- and long-term funds into the market and crack down on illegal activities including malicious short selling and insider trading.
Feb. 1:
PBOC Supports Housing and Infrastructure
The People’s Bank of China provided 150 billion yuan worth of low-cost funds for lending to housing and infrastructure projects last month, stepping up support for the economy.
Share Buybacks
Firms listed in mainland China and Hong Kong spent 14 billion yuan and HK$21 billion ($2.6 billion) repurchasing shares last month, respectively, each marking a record since 2021 when Bloomberg began compiling the data.
Jan. 28: Securities Lending Restriction
Securities regulators said they will halt the lending of certain shares for short selling, the latest attempt to put a floor under the stock market rout. Strategic investors, which typically refers to holders with restricted shares, won’t be allowed to lend out the stock during agreed lock-up periods.
Read More: China Tightens Securities Lending Rule to Support Stock Market
Jan. 27: Real Estate Easing
Guangzhou, one of China’s biggest cities, further loosened home-buying curbs in a bid to stem falling prices. Beijing, Shanghai and Shenzhen have lowered down-payment requirements since November.
Read More: China’s Guangzhou Eases Property Curbs Further as Prices Fall
Jan. 26: Aid for Developers
The Ministry of Housing and Urban-Rural Development said it will provide a list of housing projects eligible for funding support by the end of the month, the latest attempt to boost lending for real estate to slow the sector’s slump.
Read More: China to List Property Projects Eligible for Funding
The same day, the National Financial Regulatory Administration urged banks to support requests by qualified developers including extending existing loans and adjusting repayment arrangements.
Read More: China Property Developers Rise After Guangzhou Easing, Supports
Jan. 24: RRR Cut, Property Loans, More
People’s Bank of China Governor Pan Gongsheng said the central bank will lower the reserve requirement ratio — the amount of cash lenders must keep in reserve — by 0.5 percentage points on Feb. 5 to release 1 trillion yuan ($139 billion) in long-term liquidity to the market. The announcement, coming after official data showed the nation’s economy was still grappling with major challenges, marked the biggest RRR cut since 2021.
Read More: China Ramps Up Stimulus, Market Rescue With Sudden RRR Cut
Hours later, regulators unveiled more measures, including broadening the use of commercial property loans for developers to help them repay other debt.
Read More: China Adds Support for Developer Funding By Easing Loan Uses
The same day, authorities in China and Hong Kong announced steps to deepen financial ties, including facilitating real estate purchases and expanding a program that allows for personal investments in the Greater Bay Area, a region of 70 million people that includes Hong Kong and megacities in the southern mainland such as Shenzhen and Guangzhou.
Read More: China and Hong Kong Broaden Investment and Financing Links
Jan. 23: Stock Rescue Package
Policymakers are considering using about 2 trillion yuan, mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilization fund to buy shares onshore through the Hong Kong exchange link, Bloomberg reported. They have also earmarked at least 300 billion yuan of local funds to invest in onshore shares through China Securities Finance Corp. or Central Huijin Investment Ltd. A day earlier, Premier Li Qiang asked authorities to take more “forceful” measures to stabilize the stock market and investor confidence. His request came after the CSI 300 Index touched a five-year low.
Read More: China Eyes Stock Rescue Package Backed by $278 Billion
Jan. 19: Signs of State Buying
The aggregate turnover in some of the country’s top exchange-traded funds — commonly watched for signs of state-led buying — reached the third-largest weekly total ever. It was the most since July 2015, when the so-called “national team” tried to offset selling momentum amid an epic bubble bursting.
Read More: Record Turnover in China ETFs Fuels State Buying Speculation
Jan. 16: Special Bonds
China is considering 1 trillion yuan of new debt issuance under a so-called special sovereign bond plan, Bloomberg News reported. The proposal discussed by senior policymakers would involve the sale of ultra-long sovereign bonds to fund projects related to food, energy, supply chains and urbanization.
Read More: China Weighs More Stimulus With $139 Billion of Special Bonds
Jan. 5: Rental Housing
The PBOC and the NFRA published guidelines on financial support for the development of the market for rental housing. That included a policy to encourage banks to provide loans for developers, industrial zones, certain rural organizations and companies to build new homes for long-term renting or renovating existing facilities for that purpose.
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>>> 6 Roman Emperors that Shaped the History of Rome
Many emperors led Rome throughout its long history but only a few left a profound mark, shaping the Empire’s course. Here are the six most influential Roman emperors.
The Collector
Aug 30, 2021
By Vedran Bileta, MA in Late Antique, Byzantine, and Early Modern History, BA in History
https://www.thecollector.com/roman-emperors-history-roman-empire/
The Roman Empire left an indelible imprint on the history of mankind. At its apex, this vast Empire spanned continents and included over 65 million people, who spoke one language and used one coinage. This vast empire was protected by the mighty Roman legions stationed along the frontier — from the forests of Britain to the sands of North Africa, along the great European rivers of the Danube to the Rhine to the Persian Gulf. Even today, ruling over such a complex and enormous state would be a monumental task, not to mention the threats from external and internal rivals. Many Roman emperors managed to fulfill their duty while some failed, losing their life. However, a few managed not only to achieve greatness but to change the state’s structure and direction, reshaping history itself. This is their story.
Augustus: First of the Roman Emperors
When Gaius Octavian was born in 63 BCE, few could have predicted this boy would become ruler of Rome, reshaping its history and laying the foundations of a world superpower. Octavian emerged on Rome’s political stage following the assassination of his uncle Julius Caesar. In his will, Caesar adopted the boy, making him his heir. The civil wars that followed Caesar’s death ended in 30 BCE when Octavian eliminated Mark Antony and Cleopatra. He was now in control of the wealth of Egypt and the entirety of the Mediterranean. Most importantly, Octavian was the sole ruler of the Roman Republic.
The ruins of the Republic would soon transform into something greater. With the help of his loyal friend, Marcus Vipsanius Agrippa, Octavian convinced the Senate to give him unprecedented power. From 27 BCE until his death in 14 CE, Octavian, now known as Augustus, seized control of the government and the army. He was a principal source of law, controlling state finances, foreign policy, and religion. Augustus also had monopoly over the legions. The Roman military was now a standing army, with regular salaries and pensions. To avoid further civil wars and curb the political ambitions of military commanders, Augustus transferred the legions to the frontier. To protect himself, he established the Praetorian Guard.
Although he wisely avoided abusing power and co-operated with the Senate, acting as the princeps (first among equals), Augustus remained in control — he was the first of the Roman emperors. From Augustus onwards, one man would rule over the entire Empire, and his descendants would form the first imperial Roman bloodline — the Julio-Claudian dynasty.
Vespasian: A Roman Emperor by Law (and Might)
The Julio-Claudian dynasty met a bloody end with the violent death of Emperor Nero. His death was the end of one illustrious bloodline and the beginning of a period of chaos that plunged the Empire into a bloody civil war, also known as the “Year Of the Four Emperors”. After three of these Roman emperors died, one man emerged victorious. In 70 CE, at the head of his legions, Titus Flavius Vespasian arrived in Rome and proclaimed himself emperor.
Vespasian had strong military support (always a good thing in Rome) but he could not lay claim to the dynasty, having no blood relation. To resolve the issue, a law was passed before his arrival to Rome, conferring imperial powers on him (the Lex de imperio Vespasiani), which allowed Vespasian to take the diadem and establish his own Flavian dynasty of Roman emperors.
Vespasian began a propaganda campaign to further legitimize his rule, distributing coinage across the Empire, praising the emperor’s restoration of peace, and strengthening the legions. The emperor also stabilized finances, paying particular attention to the provinces, while in Rome, he reshaped the city’s skyline with monumental structures like the Colosseum.
Augustus laid the foundation for the Roman Empire and established the first imperial dynasty but Vespasian took it to a new level, establishing a law which allowed him and all Roman emperors to legitimize their claim.
Hadrian: Establishing The Empire’s Frontier
During the reign of Emperor Trajan, one of the most powerful Roman emperors, the Roman Empire reached its greatest extent. His achievements were recorded in stone, in monuments erected across the Empire, including the famous Trajan’s Column. One of the men who followed Trajan on his campaigns was Publius Aelius Hadrianus or Hadrian. Marked as Trajan’s successor, Hadrian took the throne in 117 CE. His reign was marked by a period of peace and consolidation. The only exception was a revolt in Judaea in 132 CE.
Hadrian was fond of Hellenistic culture. He was also a traveler, who spent most of his reign roaming all over the vast empire. Hadrian looked after the imperial army, and subsequently the soldiers adored their commander-in-chief. Thus, it is not surprising that the emperor who personally inspected the entire length of the border also established the Empire’s frontiers. Halting expansion, Hadrian focused on strengthening his defenses. In Africa, he built fortified roads. On the Rhine and Danube, palisade walls, watchtowers, and forts defined Roman-controlled territory. Hadrian’s most famous work still stands in northern England — a stone wall spanning from coast to coast, bearing the emperor’s name.
Unlike his predecessors who pushed the Empire’s borders forward, Hadrian knew when to stop. His defensive works separated the Roman territory from the barbaricum, and solidified the image of the Empire and its borders, which, apart from a few minor adjustments, Hadrian’s successors continued to keep in place.
Marcus Aurelius: An All-Inclusive Roman Emperor
Marble bust of cuirassed Marcus Aurelius, ca. 175 CE, Saint-Raymond Archaeological Museum
Unlike the violent collapse of the Julio-Claudians, the power transfer between the next two successor dynasties was smooth and peaceful. Hadrian chose Marcus Aurelius, still a child, to be his successor. Thus, Hadrian’s successor, Emperor Antoninus Pius, groomed Aurelius for his future role.
The training served Marcus Aurelius well. Upon his succession in 161 CE, the new emperor had to deal with several crises on the Empire’s frontiers. Rome’s eternal nemesis, Persia, threatened the eastern front, while the breakdown of the Danubian Limes exposed the imperial heartland of Italy to barbarian attack. Initially, Marcus Aurelius had the support of his co-ruler, Lucius Verus. But after Verus’ death from the plague, the emperor had to deal with the crises alone. Marcus Aurelius spent the rest of his reign on the Danube, where he died in 180 CE.
Perhaps due to the emperor’s constant involvement in warfare and the need for efficient crisis management, Marcus Aurelius began promoting both army officers and civilian administrators on the basis of merit and ability, rather than birth and class. The process started under Hadrian but intensified under Aurelius. To avoid displeasing the Senate, the promoted men would be elevated in their rank too. The consequence of this policy was greater social mobility. More importantly, Aurelius’ reforms broadened the base for army recruitment, which allowed for greater flexibility in the future.
Septimius Severus: Militarizing and Sacralizing the Imperial Family
The assassination of Commodus in 192 CE brought the Antonine dynasty to an end. What followed was a bloody civil war. Eventually, Lucius Septimius Severus, a North African aristocrat and general, emerged as the victor, taking the throne in 197 CE. Severus tolerated the Senate but made it clear that the army was the basis of his power. A generous salary rise, the first in more than a century, further solidified the army’s support. More importantly, it tied the military not only to Severus but to his children and the emerging Severan dynasty.
But Severus did not stop there. Besides the militarization of the new dynasty, he also made the first moves to detach the imperial household from the populace. Severus made himself and his family sacrosanct, setting a precedent that would become a fourth-century trend. Inscriptions and monuments presented the domus divina—the imperial family—as a sacrosanct and unassailable entity.
Severus’ reforms, however, failed to protect his dynasty. The soldiers were powerful backers, but only for Roman emperors who proved to be competent commanders. The violent death of the last Severan emperor, Severus Alexander, at the hands of his own troops, kickstarted a chaotic period, which required a military man on the throne, who more often than not lost his life in internal or external conflicts. The Empire, however, endured, and when Diocletian took the reins at the end of the 3rd century, he established an autocratic and absolutist rule—the dominate—following Severus’ model.
Constantine the Great: First of the Christian Roman Emperors
Diocletian’s solution for the Empire’s stability was the Tetrarchy — a system that allowed for the rule of four Roman emperors (two senior Augusti and two junior Caesares). The plan was to satisfy the powerful generals’ political ambitions by allowing each of them to rule over a quarter of the Roman world. Unsurprisingly, the system backfired not long after Diocletian’s voluntary abdication. Instead of bringing cohesion and peace to the Empire, it created new rivalries, sparking further civil wars. The winner of those wars would make one of the most crucial changes to the imperial system and he would change the course of the Empire for centuries to come.
Flavius Valerius Constantinus, or Constantine the Great, was the son of one of the tetrarchs. Upon his father’s death, Constantine was proclaimed emperor by his soldiers, plunging headfirst into the two-decade-long civil war. In 312 CE, Constantine’s troops defeated one of his rivals, Maxentius, at the Battle of Milvian Bridge outside Rome. According to a popular legend, prior to the battle, Constantine saw a cross in the sky and was told: “In this sign shall you conquer.”
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>>> The Council of Trent opens.
December 13, 1545.
By Jesús Vico and Beatriz Camino.
The Council of Trent
The Council of Trent (1545 to 1563) assembled Catholic clergy under the leadership of Pope Paul III as a response to the Protestant Reformation. Throughout three sessions, the Council reiterated the Catholic Church’s authority and denounced Protestant theology, marking the inception of the Catholic Counter-Reformation.
Background: The Protestant Reformation
The Protestant Reformation started in the Germanic regions of the Holy Roman Empire in 1517 when Martin Luther posted his 95 Theses. His intention was to invite fellow clerics to engage in a debate regarding the sale of indulgences, which were certificates promising a shorter stay in purgatory after death (lol). By objecting to their sale, he challenged the pope’s authority over souls in purgatory and criticized the apparent greed underlying the practice. In response, the Church excommunicated him in 1521, branding him a heretic. Despite this, Luther’s 95 Theses and other writings had already been published and widely disseminated.
In an attempt to reunify the Church, Charles V, Holy Roman Emperor, convened the Diet of Augsburg in June 1530. The Lutherans presented the Augsburg Confession, while the Catholics offered the Confutatio Augustana. However, neither party accepted the other’s confessions of faith, and no resolution was reached.
Efforts for reconciliation between Catholics and Protestants were made again in 1537 by Pope Paul III and Charles V. However, this meeting was never realized due to ongoing military conflicts between the latter and King Francois I of France. Charles V, motivated by the need for unity against a potential Ottoman Empire invasion, sought reconciliation among his subjects. The next reconciliation attempt was scheduled for December 13, 1545, in Trent, Northern Italy.
The First Session
Despite being labelled as an ecumenical conference, the Council of Trent excluded Protestants from meaningful participation by denying them the right to vote or voice their opinions in the proceedings. In response, Protestant clergy opted to abstain from attending. Thus, the Council of Trent transformed into a Catholic assembly with the primary objective of rectifying Church abuses, particularly the sale of indulgences, addressing alleged errors in Church teaching and practice, and reinforcing its authority.
To begin with, the Council had to first reach a unanimous consensus on the books of the Bible considered Holy Scripture. In this regard, it affirmed the Vulgate translation of Saint Jerome as the sole authoritative text. Moreover, the Council refuted Luther’s assertion that sinful humanity couldn’t fulfil the law and emphasized God’s grace available through good works.
The Council affirmed Church teachings, covering various aspects such as the impotency of human nature to justify man, the dispensation and mystery of Christ’s advent, and the description of justification and its mode in the state of grace. These canons condemned the Protestant Reformation as heresy and labelled its supporters as heretics, highlighting the Church’s position that individual interpretation of truth and scripture was unreliable due to the inherent sinfulness of human nature. The Council also underscored the importance of adhering to the Church’s traditional practices to ensure a true understanding of scripture. Subsequent sessions were interrupted by the plague, and the Council was prorogued in September 1549.
The Second & Third Sessions
The second session of the Council of Trent, which commenced in May 1551 under Pope Julius III, aimed to address theological questions surrounding the Eucharist. Certain Protestant factions asserted that the Mass was merely a commemoration of Christ’s sacrifice, rejecting the belief in the real presence of God during the consecration and the transformation of bread and wine into Christ’s body and blood. The Council condemned this view as heresy, unequivocally stating that Christ was present in the Eucharist.
Under Pope Pius IV, the Council resumed in January 1562. This session focused on reforming Church abuses, including addressing issues related to poorly educated clergy who relied on parishioners’ tithes without providing adequate spiritual guidance. The Council endorsed the establishment of additional seminaries and promoted more in-depth study for clerical candidates. Concerning the Protestant objection to the sale of indulgences, the Council resolved that indulgences would no longer be sold but could be obtained through a donation, with the process regulated.
Simultaneously, to curb the spread of Protestant ideas, the Council approved the Index Librorum Prohibitorum in 1563, which explicitly named the works of Reformers such as Luther, Zwingli, John Calvin, and others. Although detailed in its prohibitions, the Index essentially conveyed that any book condemned by the pope, Holy Office, or local authorities should be rejected by Catholics. The Index remained in effect until its suspension in 1967.
Aftermath
The resolutions, decrees, and canons of the Council of Trent served as the foundation for the Catholic Counter-Reformation, reinstating the Church’s authority through explicit rules, regulations, and definitions of Catholic identity. It essentially upheld medieval Church policies and traditions while reaffirming the Church’s central role as the sole authority in the Christian vision. Although some decrees, like the Index, have been suspended, the decisions of the Council of Trent continued to shape Catholic belief and practice until the 1960s and still partially influence the present.
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>>> Tsar Alexander I dies in unexpected circumstances - December 1, 1825.
By Jesús Vico and Beatriz Camino.
Alexander I Pavlovich (December 23, 1777 - December 1, 1825), was emperor of Russia from March 23, 1801, until his death. He also held the title of king of Poland from 1815 to 1825 and was the inaugural Grand Duke of Finland.
Early Life
Alexander was born in Saint Petersburg to Grand Duke Paul Petrovich (later Emperor Paul I) and Sophie Dorothea of Württemberg. Shortly after his birth, his grandmother, Catherine the Great, took him away from his father due to her strong aversion to him and to prevent his influence on the future emperor. This familial power struggle led to both sides attempting to manipulate Alexander, leaving him emotionally torn between his grandmother and his father.
Raised in the intellectually stimulating environment of Catherine's court, Alexander absorbed the principles of Rousseau's humanitarian philosophy, while learning the traditions of Russian autocracy. Moreover, Alexander's father instilled in him a paradoxical blend of a theoretical love for humanity coupled with a practical contempt for individuals. These conflicting influences shaped Alexander's dualistic approach in his political decisions.
The death of Catherine in November 1796 brought his father, Paul I, to the throne, whose reform attempts faced opposition from Alexander and several close advisers. The tensions culminated in his murder in March 1801. Following this, Alexander ascended to the throne on March 23, 1801, and was officially crowned in the Kremlin on September 15 of the same year.
His Reign
One of Alexander’s initial actions was the establishment of the "Committee of Public Safety". This committee, comprising Alexander's young and enthusiastic associates was tasked with formulating a plan for internal reform, with the aim of establishing a constitutional monarchy. The emperor intended to draft a constitution and grant political liberties influenced by the ideals of the Age of Enlightenment. Additionally, he sought to address the issue of serfdom in Russia, though this goal was only realized in 1861 during the reign of his grandson, Alexander II.
Still, notable reforms were taken, including granting freedom to publishing houses, winding down intelligence service activities, and prohibiting torture. However, legal reforms, including the codification of laws initiated in 1801, faced obstacles and were not fully implemented during his reign. The constitution remained unsigned, and the status of peasants saw little improvement.
In terms of foreign policy, Alexander's political decisions were marked by shifts and complexities. Initially, he was enamoured with the idea of a European confederation and influenced by Enlightenment ideals. Consequently, he reversed his father's policy, denouncing the League of Neutrals and making peace with the UK. He also had a brief admiration of Napoleon, entertaining thoughts of an alliance. However, events such as the murder of the Duc d'Enghien altered his perception and set the stage for his opposition to the French leader during the Napoleonic Wars.
This conflict showcased Alexander's complex role in European politics. In this regard, he articulated an idealistic vision, aiming for the triumph of "the sacred rights of humanity" and proposing a general treaty to establish rules among European states. However, the practical application of these principles faced challenges, and Alexander's alliance with Napoleon eventually soured. The campaign of 1812 marked a significant turning point in their relationship. The occupation of Moscow by French forces and the desecration of the Kremlin fueled his passionate hatred for Napoleon.
Later in his reign, Alexander began to distance himself from liberal ideals and moved towards a more conservative stance, particularly after events like the revolutionary conspiracy among officers and the plot to kidnap him. Moreover, he faced the dilemma of Greek independence, which made Alexander torn between his dream of a confederation of Europe and his role as a leader of the Orthodox crusade against the Ottoman Empire.
Death
In the autumn of 1825, Alexander contracted typhus while undertaking a voyage to the south of Russia. He eventually succumbed to the illness in the Russian city of Taganrog on December 1, 1825, and was interred at the Saint Peter and Paul Cathedral in Saint Petersburg on March 13, 1826.
The circumstances surrounding Alexander's death gave rise to rumours and conspiracy theories. Some speculated that his death and funeral were staged, and there were claims that he renounced the crown and lived out his life in solitude. Others even suggested that a substitute was buried as Alexander or that the grave was empty.
The confusion extended to matters of succession. Constantine Pavlovich, the heir presumptive, had renounced his rights of succession in 1822, a fact not publicly known at the time of Alexander's death. Consequently, the population initially swore allegiance to Constantine. The revelation of the true order of succession later identified Nicholas I as the rightful heir.
The aftermath also witnessed the Decembrist revolt, an attempt by liberal-minded officers to defend Constantine's supposed rights to the throne. However, Nicholas I ruthlessly suppressed the rebellion, sending its leaders to the gallows or Siberia.
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>>> Charlie Munger Raves About Warren Buffett's Rare Japanese Investment Opportunity Of A Century — 'It Was Like Having God Just Opening A Chest And Just Pouring Money Into It' — High Rewards For A Low Risk
Benzinga
by Jeannine Mancini
November 1, 2023
https://finance.yahoo.com/news/charlie-munger-raves-warren-buffetts-164102631.html
Warren Buffett’s unexpected decision to invest in Japan during the 2020 pandemic seems to have paid off, and no one appears more pleased than Berkshire Hathaway Inc. Vice Chairman Charlie Munger.
The strategy was a departure from the company’s well-known preference for American enterprises like Apple Inc., the Coca-Cola Co., Bank of America Corp. and American Express Co. The company’s portfolio has often been a testament to its confidence in the U.S. market. Speaking on the Acquired podcast in October, however, Munger pointed out that the Japanese investment was a distinctive and lucrative opportunity that couldn't be passed up.
"If you're as smart as Warren Buffett, maybe two, three times a century, you get an idea like that," Munger said on the podcast. He cited Japan's low interest rate environment as a key factor, saying, "The interest rates in Japan were 0.5% a year for 10 years, and these trading companies were really entrenched old companies."
Berkshire Hathaway's strategy involved borrowing money in Japan at a mere 0.5% interest and investing in companies there that offered a 5% dividend yield.
"It was like having God just opening a chest and just pouring money into it," Munger said.
Initially, Berkshire Hathaway declared a $6 billion investment across five Japanese trading houses — Itochu International Inc., Marubeni Corp., Mitsubishi Corp., Mitsui & Co. Ltd. and Sumitomo Corp. Group — in August 2020. That investment has grown substantially and is now valued at approximately $17 billion, thanks in part to both additional share purchases and soaring stock prices of the companies involved.
Munger provided more detail on the mechanics of the investment, indicating it wasn't an overnight success but rather a result of patient, incremental actions.
"The only way you could get it was to be very patient and just pick away at little pieces at a time. It took forever to get $10 billion invested, but it was awfully easy money," Munger said.
In contrast, U.S. interest rates have escalated to over 5% since last spring, adding another layer of context to the wisdom of this Japanese trade.
"We could do that, nobody else could," said Munger, highlighting that Berkshire's strong credit rating gave them access to such favorable borrowing terms in Japan.
In the Acquired podcast interview, the host pointed out a paradox: While Berkshire Hathaway's excellent credit allows it access to low-interest loans, the company's enormous scale makes it challenging to invest sufficiently large sums. In response, Munger agreed, stating, "That's true, but why shouldn't it be hard to make money? Why should it be easy?"
Before the podcast, at Berkshire Hathaway's annual shareholders meeting in May, Buffett shared insights into these investments, noting that the selected companies were "ridiculously" cheap and compatible with Berkshire's long-term vision.
Andrew McCagg of Nomura Asset Management UK Ltd. also offered his perspective on the investment.
"Improving shareholder returns were likely a bigger factor in Buffett's decision to buy Japanese trading houses than some of the other factors," he told Insider via email.
Berkshire Hathaway's Japanese investments, as described by Munger, represent a special kind of opportunity: high rewards for low risk. The investment appears to be a case study in successful financial strategy, blending patient capital allocation with keen market observation.
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>>> Japanese trading houses rise as Warren Buffett raises stakes and says he may buy more
CNBC
APR 11 2023
https://www.cnbc.com/2023/04/11/berkshire-japan.html
KEY POINTS
Warren Buffett told Nikkei he is considering additional investment in Japan’s five major trading houses.
Berkshire Hathaway has raised its stakes in all five trading houses to 7.4%.
Shares of Mitsubishi Corp. rose 2.1% in Japan’s afternoon trade, Mitsui & Co. gained 2.7% and Itochu Corp climbed 3%.
Shares of Japanese trading houses rose on Tuesday after Warren Buffett, chairman and CEO of Berkshire Hathaway, raised his stakes in the firms and said he may increase his holdings even further.
In an interview with Nikkei, Buffett said he is considering additional investment in five major Japanese trading houses, adding that he was “very proud” of his existing investments in them.
Shares of Mitsubishi Corp. rose 2.08% in Japan’s afternoon trade, Mitsui & Co. gained 2.66%, Itochu Corp climbed 2.98% and Marubeni Corp. advanced 4.55%. Sumitomo Corp. also rose 3.19%.
Berkshire Hathaway has raised its stakes in all five trading houses to 7.4%, according to CNBC’s Becky Quick. That’s up from positions of 6.6% in Mitsubishi Corp., 6.6% in Mitsui & Co., 6.2% in Itochu Corp., 6.8% in Marubeni Corp. and 6.6% in Sumitomo Corp, according to November filings.
Buffett told Nikkei that he is planning to meet with the companies later in the week “to really just have a discussion around their businesses and emphasize our support,” according to the report.
Japan’s five largest trading companies — known as sogo shosha — are conglomerates that import everything from energy and metals to food and textiles into resource-scarce Japan. They also provide services to manufacturers. The trading houses have helped grow the Japanese economy and contributed to the globalization of its business.
Late last year, Berkshire Hathaway increased its positions in the five leading trading houses in Japan by at least 1 percentage point to more than 6% each — after its initial purchase in August, when Buffett acquired stakes worth more than $6 billion in total on his 90th birthday.
Nikkei separately reported that Buffett’s Berkshire Hathaway is preparing another issuance of yen-denominated bonds, which was seen as a signal the conglomerate would increase its investments in Japan.
Buffett will be live from Japan on CNBC’s U.S. “Squawk Box” on Wednesday to discuss his investments in the country.
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>>> L'Oréal S.A. (LRLCY), through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Active Cosmetics. It offers shampoos, hair care products, shower gels, skin care products, cleansers, hair colors, styling products, deodorants, sun care products, make-up, perfumes, etc. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Essie, Niely, Dark and Lovely, Lancôme, Yves Saint Laurent Beauté, Giorgio Armani Beauty, Kiehl's, Urban Decay, Biotherm, Ralph Lauren, IT Cosmetics, L'Oréal Professionnel, Kérastase, Redken, Matrix, Biolage, Pureology, Decléor, Carita, Vichy, La Roche-Posay, SkinCeuticals, Roger&Gallet, CeraVe, Stylenanda, Mixa, Magic Mask, Prada, Helena Rubinstein, Valentino, Mugler, Shu Uemura, Viktor&Rolf, Azzaro, Diesel, Atelier Cologne, Cacharel, and Yue Sai brands. It sells its products through distribution channels, such as hair salons, mass-market retail channels, perfumeries, department stores, pharmacies, drugstores, medispas, branded retail, travel retail, and e-commerce. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.
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>>> Arch Capital Group Ltd. (ACGL), together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employer's liability; and contract and commercial surety coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability and workers' compensation exposures; marine and aviation; surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was incorporated in 1995 and is based in Pembroke, Bermuda.
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>>> Linde Inaugurates World's First Hydrogen Refueling System for Passenger Trains
Accesswire
Linde plc
August 24, 2022
https://finance.yahoo.com/news/linde-inaugurates-worlds-first-hydrogen-085000823.html
WOKING, UK / ACCESSWIRE / August 24, 2022 / Linde (NYSE: LIN; FWB: LIN) today announced it has inaugurated the world's first hydrogen refueling system for passenger trains in Bremervörde, Germany.
Linde's hydrogen refueling system, which it built, owns and operates, will refuel 14 hydrogen-powered passenger trains, enabling each train to run for 1,000 km emission-free on a single refueling. It has a total capacity of around 1,600 kg of hydrogen per day, making it one of the largest hydrogen refueling systems ever built. Linde's future-ready hydrogen refueling system has been designed and constructed with the ability to integrate future on-site green hydrogen generation. The new hydrogen trains will replace existing diesel-powered trains.
"Linde is committed to making a significant contribution towards decarbonizing transport in Europe," said Veerle Slenders, President Region Europe West, Linde. "We are proud that Linde's innovative technology plays a key role in supporting this project and establishing a blueprint for cleaner public transport systems around the world."
"The world's first hydrogen train, the Coradia iLint, demonstrates a clear commitment to green mobility combined with the latest technology," said Müslüm Yakisan, President of Alstom in Germany, Austria and Switzerland. "We are very proud to see the first series operation in action together with our partners Linde, LNVG and evb."
Linde is a global leader in the production, processing, storage and distribution of hydrogen. It has the largest liquid hydrogen capacity and distribution system in the world. The company operates the world's first high-purity hydrogen storage cavern plus pipeline networks totaling approximately 1,000 kilometers globally, to reliably supply its customers. Linde is at the forefront in the transition to clean hydrogen and has installed over 200 hydrogen fueling stations and 80 hydrogen electrolysis plants worldwide. The company offers the latest hydrogen technologies through its world class engineering organization, key alliances and partnerships.
About Linde
Linde is a leading global industrial gases and engineering company with 2021 sales of $31 billion (€26 billion). We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain and protect our planet.
The company serves a variety of end markets including chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
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>>> Nestle Eyed Biggest-Ever Deal in Aborted Move for GSK Unit
Bloomberg
by Aaron Kirchfeld, Ruth David and Dinesh Nair
May 26, 2022
https://finance.yahoo.com/news/nestle-eyed-biggest-ever-deal-165347419.html
(Bloomberg) -- For a fleeting moment, Nestle SA explored what would have been its biggest-ever deal in a move that underscores the consumer giant’s ambition to grow through large acquisitions.
The Swiss company floated the idea in recent months of acquiring GSK Plc’s consumer health arm, people with knowledge of the matter said. It made informal overtures to express interest in the GSK unit around the same time as Unilever Plc’s £50 billion ($63 billion) bid for the business that failed in January, the people said.
As part of its deliberations about a deal, Nestle was considering teaming up with Reckitt Benckiser Group Plc or a similar strategic partner to split up the unit, the people said. However, Nestle quickly dropped its pursuit due to the complexities of a deal and GSK management’s preference for a separate listing of the operations, according to the people.
The revelation comes as GSK pursues one of the largest corporate spinoffs ever attempted in the UK. The unit, now known as Haleon, owns a sprawling portfolio of brands from Advil painkillers to Sensodyne toothpaste. Its plans for a listing come at a time when equity markets globally have been declining amid the war in Ukraine, while new stock offerings have nearly dried up as investors’ risk appetite falls.
Activist Pressure
“Haleon is an attractive consumer asset, which should ultimately be reflected in its independent valuation,” analysts at Jefferies Financial Group Inc. wrote in a note Thursday, citing the potential takeover interest.
The report “suggests” GSK is committed to the spinoff as a tax-free way of crystallizing value for shareholders while also providing £7 billion to pursue pipeline deals, without the potential delays from a sale, according to Jefferies.
Unilever in January abandoned its bid for the GSK business after the UK drugmaker rejected its approaches and it encountered opposition from its own shareholders. GSK Chief Executive Officer Emma Walmsley has consistently argued that the public markets are the best home for Haleon. She’s been seeking to boost performance amid pressure from activist shareholder Elliott Investment Management.
Mega Listing
GSK has made clear it’s keen on creating a large independent firm and achieving long-term growth, compared with the short-term profit from a sale, the people said. Nestle’s interest was seen as an exploratory idea not backed by committed financing, so GSK never had to seriously evaluate it, the people said.
The British company remains focused on the spinoff, and there aren’t any active negotiations between the two parties, the people said. Nestle is still monitoring the situation, and it could revisit its interest depending on how Haleon trades after its stock market debut, they said.
Haleon is in the process of hiring corporate brokers ahead of the planned UK listing, the people said, asking not to be identified discussing confidential information. That move raises the prospect that some large investment banks could switch allegiances in order to represent Haleon, which is expected to immediately become one of the London market’s biggest companies.
Representatives for Nestle, Reckitt and GSK declined to comment.
Portfolio Pruning
Since taking the helm at Nestle in 2017, CEO Mark Schneider has made targeted acquisitions and sold off several underperforming units. Nestle, Europe’s biggest listed company by market value, has been expanding its presence in faster-growing health and wellness products by snapping up firms like nutritional supplement provider Bountiful Co. and hydration-tablet maker Nuun & Co.
Schneider said in February the company was more interested in small and mid-sized deals, though it wouldn’t rule out larger purchases.
Reckitt, the maker of Lysol disinfectants and Durex condoms, has also been revamping its portfolio by offloading businesses seen as less profitable. It has divested its Chinese baby formula unit and has been considering a sale of its remaining infant nutrition operations globally, Bloomberg News reported.
Slough, England-based Reckitt considered buying a portion of Pfizer Inc.’s consumer business in 2018. It eventually backed out of the race, a move applauded by investors at the time.
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>>> Accenture Boosts Revenue Forecast. The Stock Is Rising.
Barron's
By Joe Woelfel
March 17, 2022
https://www.barrons.com/articles/accenture-acn-stock-earnings-revenue-forecast-51647506664?siteid=yhoof2
Accenture shares were rising in premarket trading Thursday after the management consulting company reported fiscal second-quarter earnings that beat Wall Street forecasts and boosted its fiscal-year revenue outlook.
Accenture (ticker: ACN) stock was up 5% to $340.99.
Accenture reported second-quarter earnings of $2.54 a share on revenue of $15.05 billion.
Analysts surveyed by FactSet expected Accenture to report fiscal second-quarter earnings of $2.37 a share on revenue of $14.65 billion. A year earlier, Accenture earned $2.23 a share on revenue of $12.09 billion.
New bookings in the second quarter were a record $19.6 billion.
The company said it expects fiscal-year revenue to rise 24% to 26%, higher than its previous forecast of up 19% to 22%. It expects earnings of $10.61 to $10.81 a share, an increase of 21% to 23% from adjusted profit in fiscal 2021 of $8.80; Accenture previously expected fiscal 2022 earnings of between $10.32 to $10.60.
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>>> European stocks rally on best day in nearly two years as Ukraine’s president cools to NATO membership
MarketWatch
March 9, 2022
By Steve Goldstein
https://www.marketwatch.com/story/european-stocks-rally-as-ukraines-president-cools-to-nato-membership-11646814770?siteid=yhoof2
European stocks rallied on Wednesday, buoyed by an interview from Ukraine’s president in which he appeared to make major concessions.
The Stoxx Europe 600 SXXP, +4.68% rose 4.7% to 434.35, helped by a rally in the beleaguered banking sector. It was the strongest one-day rise since March 24, 2020, according to FactSet data.
Even with the rally, the index has dropped 12% this year.
Gainers on Wednesday included BNP Paribas BNP, +9.95%, Adidas ADS, +13.63% and Deutsche Post DPW, +12.45%.
Sportswear manufacturer Adidas set out optimistic guidance for 2022, including a return to growth in China. Deutsche Post announced a new share buyback as it guided for a steady profit excluding the impact of the conflict in Eastern Europe.
Of the major regional indexes, the German DAX DAX, +7.92% surged 7.1%, the French CAC 40 PX1, +7.13% surged 6.6% and the U.K. FTSE 100 UKX, +3.25% gained 2.8%.
Volodymr Zelensky told ABC News on Tuesday that “I have cooled down regarding the question” of NATO membership and said he was open to dialogue on the fate of Eastern Ukraine republics, Donetsk and Lugansky, that Russia recognizes as independent.
U.K. Prime Minister Boris Johnson this week said Ukraine had no “serious prospect” of NATO membership. Russia’s and Ukraine’s foreign ministers are due to meet Thursday in Turkey, Reuters reported.
However, “While the contours of the end of this war are becoming visible, that doesn’t necessarily mean the fighting will stop any time soon,” said Arne Petimezas, senior analyst at AFS Group.
Polymetal International POLY, +69.20%, the Anglo-Russian gold miner, surged 62%. Polymetal said for European Union sanctions purposes, it is not owned by or acting at the direction of a person connected with Russia.
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>>> Adyen N.V. (ADYEY) operates a payments platform in Europe, North America, the Asia Pacific, Latin America, and internationally. The company's platform integrates payments stack that include gateway, risk management, processing, acquiring, and settlement services. It offers a back-end infrastructure for authorizing payments across merchants' sales channels, as well as online, mobile, in-store, and APIs. The company's platform services a range of merchants across various verticals, connecting them directly to Visa, Mastercard, and other payment methods and providing data insights. Adyen N.V. was incorporated in 2006 and is headquartered in Amsterdam, the Netherlands.
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>>> Bill Gates Just Bought Coupang (CPNG) Stock, Good Investment
Market Realist
BY MOHIT OBEROI, CFA
MAY. 24 2021
https://marketrealist.com/p/should-buy-coupang-cpng-stock-like-bill-gates/
The Bill and Melinda Gates Foundation Trust has disclosed a new stake in South Korean e-commerce company Coupang (CPNG). However, it has exited the stake in Apple and Twitter. Should you follow the foundation and buy CPNG stock?
The Bill and Melinda Gates Foundation Trust has bought 5.71 million shares of CPNG. The stake is valued at around $220 million at the current prices. Coupang went public in March and had a strong listing. However, it fell amid the sell-off in growth names. At one point, Coupang was trading below the IPO price of $35.
Coupang stock and the Bill and Melinda Gates Foundation Trust
The Bill and Melinda Gates Foundation Trust is the world’s largest charitable trust with assets of almost $50 billion. The foundation has put its trust in CPNG stock even though it has trimmed stakes in some of the other tech stocks.
CPNG stock valuation
CPNG stock trades at an NTM (next-12 month) EV-to-EBITDA multiple of 2.99x. The multiples have averaged 4.2x since the company went public and hit a high of 5.53x. The current valuation multiples aren't far away from the all-time low multiples of 2.5x. Since the stock only listed recently, we don’t have enough time-series data to arrive at a conclusion.
Is CPNG stock undervalued?
CPNG has backward integrated operations and it doesn't use third-party delivery services like other e-commerce companies. Also, we don’t have a real comp set for the company. While Amazon and Alibaba are also e-commerce plays, they have cloud operations as well. Incidentally, Amazon’s cloud operations account for most of its profitability.
CPNG valuation versus BABA and AMZN
Meanwhile, CPNG’s valuation multiples are at a discount to both Alibaba and Amazon. While Coupang is growing its top line at a faster pace than these companies, it's currently posting losses. Amazon and Alibaba are both posting profits.
Coupang stock forecast
According to the estimates compiled by TipRanks, CPNG has an average target price of $47, which is a premium of 23.6 percent over its closing prices on May 21. The stock’s highest and lowest target prices are $39 and $62, respectively.
Among the six analysts covering the stock, only two have a buy or equivalent rating, while the remaining four analysts have rated CPNG as a hold. Goldman Sachs is the most bullish brokerage on Coupang and has a street-high target price of $62.
Earlier this month, Coupang released its first earnings as a publicly traded company. While its sales were slightly ahead of the expectations, it posted a wider-than-expected loss in the quarter. Citigroup and Mizuho lowered the stock’s target price after the earnings release. Last week, Deutsche Bank upgraded the stock from a hold to a buy.
CPNG stock is a good buy.
Growth stocks have been out of favor with investors and CPNG stock has also been a casualty of the painful sell-off in growth names. However, Coupang has the market-leading position in South Korea and a strong brand in the country. After the IPO, it has enough cash to fund its growth and bridge the cash burn before the business starts generating positive free cash flows.
I think that Coupang stock is an attractive buy at these prices. It looks like a good way to play the e-commerce industry in South Korea at reasonable valuations.
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>>> Garmin Ltd. (GRMN) designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa. Its Fitness segment offers running and multi-sport watches; cycling products; activity tracking and smartwatch devices; and fitness and cycling accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds, golf devices, and dog tracking and training devices. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions comprising integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponder solutions, weather information and avoidance solutions, datalink and connectivity solutions, portable GPS navigators and wearables, and various services products. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fish finders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, entertainment, digital switching products, and trolling motors. Its Auto segment offers embedded computing models and infotainment systems; personal navigation devices; and cameras. The company sells its products through independent retailers, online retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as an online webshop, garmin.com. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.
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>>> CRH plc (CRH), through its subsidiaries, manufactures and distributes building materials. It operates in three segments: Americas Materials, Europe Materials, and Building Products. The company manufactures and supplies cement, lime, aggregates, precast, ready mixed concrete, and asphalt products; concrete masonry and hardscape products comprising pavers, kerbs, retaining walls, and related patio products; and glass and glazing products, including architectural glass, custom-engineered curtain and window walls, architectural windows, storefront systems, doors, skylights, and architectural hardware. It also offers precast concrete and polymer-based products, such as underground vaults, drainage pipes and structures, utility enclosures, and modular precast structures to the water, energy, communication, transportation, and building structures markets; and construction accessories, such as anchoring, fixing, and connection solutions, as well as lifting systems, formwork accessories, and other accessories used in construction applications. In addition, the company offers network access products, which include composite access chambers, covers, passive safety systems, retention sockets, sealants, and meter boxes; and paving and construction services. Further, it provides building and civil engineering contracting, contract surfacing, operates logistics and owned railway infrastructure; sells and distributes cement; and supplies access chambers and ducting products. It serves governments, contractors, homebuilders, homeowners, and sub-contractors. The company operates primarily in the Republic of Ireland, the United Kingdom, the rest of Europe, the United States, and internationally. CRH plc was founded in 1936 and is headquartered in Dublin, Ireland.
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>>> SolarEdge Technologies, Inc. (SEDG), together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. It offers inverters, power optimizers, communication devices, and smart energy management solutions used in residential, commercial, and small utility-scale solar installations; and a cloud-based monitoring platform that collects and processes information from the power optimizers and inverters, as well as monitors and manages the solar PV system. The company also provides residential, commercial, and large scale photovoltaics, energy storage and backup, electric vehicle charging, and home energy management solutions, as well as grid services; and e-Mobility, automation machines, lithium-ion cells and battery packs, and uninterrupted power supply solutions, as well as virtual power plants, which helps to manage the load on the grid and grid stability. In addition, it offers pre-sales support, ongoing trainings, and technical support and after installation services. The company sells its products to the providers of solar PV systems; and solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel.
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>>> Magic Software Enterprises Ltd. (MGIC) provides proprietary application development, business process integration, vertical software solutions, and information technologies (IT) outsourcing software services in Israel and internationally. The company's Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. Its IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental outsourcing services. The company offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining high-end and mainframe-grade business applications; Magic xpi for application integration; Magic xpc, a hybrid integration platform as a service; Magic SmartUX, a mobile development application platform; and FactoryEye for virtualization of production data. It also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Solution, a packaged software solution for managing air cargo ground handling; HR Pulse, a customized single-tenant software as a service tool; and MBS Solution, a proprietary system for managing TV broadcast management. In addition, the company provides software maintenance, support, training, and consulting services. It serves oil and gas, telecommunications, financial, healthcare, and industrial sectors; and public institutions and international agencies. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was incorporated in 1983 and is headquartered in Or Yehuda, Israel.
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>>> Else Nutrition Reports Second Quarter 2021 Results
Else Nutrition Holdings Inc.
August 27, 2021
https://finance.yahoo.com/news/else-nutrition-reports-second-quarter-162000820.html
Listed with 1,000+ US Natural Food and Grocery Retail Stores
VANCOUVER, British Columbia, Aug. 27, 2021 (GLOBE NEWSWIRE) -- ELSE NUTRITION HOLDINGS INC. (BABY.V) (BABYF) (0YL.F) ("Else" or the "Company") the plant-based baby, toddler and children nutrition company, today announced results for its second quarter ended June 30, 2021. Management is pleased to announce it achieved significant progress executing its go-to-market plan in the US market, getting listed at more than 1,000 US natural food and grocery retail stores (already on-shelf at 700 of these stores), and continuing the rapid growth of its online sales. The Company also successfully launched its second product line – Complete Nutrition for Kids in Vanilla and Chocolate flavors. The following will summarize our major execution points achieved in the second quarter of 2021, as well as our business. Full financial results can be found in the Company News section of our website at https://elsenutrition.com/pages/investor-relations.
Q2 2021 Financial Highlights
Successfully launched its second product – Complete Nutrition for Kids (3+ years; in powder form). The product was launched online on www.elsenutrition.com and on Amazon.com.
Successfully increased online sales by 40% on Amazon.com and www.elsenutrition.com.
Achieved US retail presence in more than 1,000 listed stores. New Q2 listings include Big-Y (71 stores), Vitamin Cottage (159), PCC Community Markets (15), AFS (32), Mother's Markets (11), Huckleberry's Natural Market (16) and more than 100 co-ops and independent stores. Fulfilled initial retail orders and launched aggressive retail promotion campaigns. Most listed stores are expected to launch the product during the summer, and as retail velocity will grow during the remainder of the year, product shipments to distributors and retailers are expected to grow as well.
Quarterly revenues were C$1,114 thousand, compared to C$210 thousand in the second quarter of 2020, an increase of 430%.
Quarterly operating loss was C$3,772 thousand, compared to C$1,267 thousand in the second quarter of 2020.
Quarterly net loss was C$4,753 thousand, or C$0.05 per share, compared to C$4,495 thousand, or C$0.06 per share in the second quarter of 2020.
Quarterly cash flow used for operating activities was C$3,968 thousand, compared to C$1,427 thousand in the second quarter of 2020.
Cash position was C$17,906 million as of June 30, 2021 (including restricted cash and short-term bank deposit).
The Company had no Loans liability as of June 30, 2021.
Hamutal Yitzhak, Else CEO, commented: “I am very proud of our achievements this quarter. We continued to demonstrate rapid growth in our online business while we successfully launched many more retail stores, reaching 1,000 listed stores. We successfully launched our second product line and grew our product range, and we expect growth to continue and accelerate throughout the remainder of the year.”
Impact of COVID-19
We experience the effect of the pandemic in all areas of our business, from delays in raw material deliveries, to clinical and product development projects and absence of key persons in the company from time to time. Due to lockdowns and other COVID-19 related measures all our business meeting, marketing events, conferences and expos were either canceled or turned virtual, slowing down the pace of our business development efforts.
About Else Nutrition Holdings Inc.
Else Nutrition GH Ltd. is an Israel-based food and nutrition company focused on developing innovative, clean and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy, formula is a clean-ingredient alternative to dairy-based formula. Else Nutrition (formerly INDI) won the "2017 Best Health and Diet Solutions" award at the Global Food Innovation Summit in Milan. Else Plant-Based Complete Nutrition for Toddlers was recently ranked as the #1 Top seller in the baby and toddler formula category on Amazon. The holding company, Else Nutrition Holdings Inc., is a publicly traded company, listed as TSX Venture Exchange under the trading symbol BABY and is quoted on the US OTC Markets QX board under the trading symbol BABYF and on the Frankfurt Exchange under the symbol 0YL. Else's Executives includes leaders hailing from leading infant nutrition companies. Many of Else advisory board members had past executive roles in companies such as Mead Johnson, Abbott Nutrition, Plum Organics and leading infant nutrition Societies, and some of them currently serve in different roles in leading medical centers and academic institutes such as Boston Children's Hospital, Pediatrics at Harvard Medical School, USA, Tel Aviv University, Schneider Children's Medical Center of Israel, Rambam Medical Center and Technion, Israel and University Hospital Brussels, Belgium.
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>>> Amcor plc (AMCR) develops, produces, and sells packaging products for food, beverage, pharmaceutical, medical, home- and personal-care, and other products worldwide. It operates through two segments, Flexibles and Rigid Packaging. The company provides flexible packaging solutions, special cartons, plastic bottles and jars, and capsules and closures. The company was incorporated in 1926 and is headquartered in Zürich, Switzerland.
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>>> Oatly Prices IPO at Top of Range to Raise $1.4 Billion
Yahoo Finance
by Crystal Tse
May 19, 2021
(Bloomberg) -- Oatly Group AB, the vegan food and drink maker, priced its initial public offering at the top of a marketed range to raise more than $1.4 billion.
The company and its investors sold more than 84 million American depositary shares for $17 each on Wednesday, according to a statement. The Swedish company had offered the shares for $15 to $17 each.
The listing gives Oatly a market value of about $10 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.
U.S. markets dropped for the third day in a row, with the S&P 500 index falling 0.3% Wednesday.
The IPO underscores plant-based products’ jump into the mainstream, as environmental and health concerns spur consumers to seek alternatives to traditional meat and dairy products. Investors have been looking for ways to replicate the public-market success of Beyond Meat Inc., whose shares have surged more than 300% since it went public in May 2019.
Oatly was started in 1994 by brothers Rickard and Bjorn Oste. Using technology based on research from Sweden’s Lund University, the company turns fiber-rich oats into liquid food.
In July, Oatly secured $200 million in new capital from investors led by Blackstone Group Inc. The group also included celebrities such as Oprah Winfrey and Jay-Z, as well as former Starbucks Corp. founder Howard Schultz. The company was valued at about $2 billion in the round.
Oatly’s offering is being led by Morgan Stanley, JPMorgan Chase & Co. and Credit Suisse Group AG. The shares are expected to begin trading Thursday on the Nasdaq Global Select Market under the symbol OTLY.
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Diversey Holdings - >>> This Cleaning Stock Is Loved by Analysts. Why They Say It Could Gain 40%.
Barron's
By Al Root
April 19, 2021
Wall Street is surprisingly high on a new cleaning stock.
Diversey Holdings (ticker: DSEY) provides cleaning chemicals, equipment, and services for industrial and commercial hygiene. Diversey, founded in 1923, was once part of Sealed Air (SEE), which sold the unit to private equity firm Bain Capital in 2017 for about $3.2 billion. Bain cut costs, improved margins, and brought the company public again this past month. Despite weak trading out of the gate, Wall Street almost uniformly recommends buying Diversey stock.
Diversey’s IPO qualifies as a broken deal. That means the stock is trading below its $15 IPO price, not something bankers want to see. Shares closed at $14.98 in their first day of trading. And shares are still trading lower: On Monday, they closed at $14.04.
Ecolab (ECL) is the closest comparable company to Diversey. Diversey’s market cap is roughly $4.3 billion. Ecolab, with its $63 billion valuation, is far larger.
Eight of the nine analysts who launched coverage of Diversey on Monday rated shares Buy. The average price target for Buy-rated analysts is about $19.50 a share, almost 40% above where the stock currently trades.
Those nine ratings arrived on Monday because the brokerages that launched coverage were involved in the IPO. Rules prevent participating brokers from launching coverage of a stock immediately after the public offering.
Barclays' Manav Patnaik was the lone analyst who rated shares Hold, making him all that stood between Diversey and a perfect 100% Buy-rating ratio. Still, his price target for shares is $16, a dollar higher than Diversey’s IPO price.
Baird analyst Andrew Wittmann was one of the Buy-rated analysts who launched coverage on Monday. He said in his initiation presentation that 90% of Diversey sales come from consumable products and most of the company’s products are low costs items that help customers save resources and money.
His target price is $18 based on about 31 times estimated 2021 earnings. Ecolab, for comparison, trades for about 43 times estimated 2021 earnings. Ecolab, of course, is the 800-pound gorilla in the corporate hygiene market. Plus, it has less debt than Diversey does. Being larger and less levered is one reason Ecolab has a higher valuation multiple. Still, with Diversey stock trading at about 24 times Wittmann’s estimated 2021 earnings, he sees an opportunity.
Most of Wittmann’s peers agree but, despite the bullish views, Diversey stock was down 2% in Monday trading. The S&P 500 and Dow Jones Industrial Average fell 0.5% and 0.3%, respectively.
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>>> Diversey Holdings, Ltd. (DSEY), through its subsidiaries, provides infection prevention and cleaning solutions in Europe, North America, Latin America, the Asia Pacific, the Middle East, and Africa. It operates through two segments, Institutional, and Food and Beverage. The company manufactures, markets, and sells infection prevention and personal care products; floor and building care chemicals; kitchen and mechanical ware wash chemicals, and machines; dosing and dispensing equipment; and floor care machines to healthcare, education, food service, retail and grocery, hospitality, and building service contractor industries. It also provides a range of engineering, consulting, and training services related to productivity management, water and energy management, and risk management. In addition, the company offers chemical products; engineering and equipment solutions; training; and knowledge-based services, as well as water treatment services to brewing, beverage, dairy, processed foods, pharmaceutical, and agriculture industries. Diversey Holdings, Ltd. was founded in 1923 and is headquartered in Northampton, United Kingdom. <<<
>>> Here’s how trendy ETFs can do double-duty in your portfolio
MarketWatch
Dec. 15, 2020
By Andrea Riquier
https://www.marketwatch.com/story/heres-how-trendy-etfs-can-do-double-duty-in-your-portfolio-11607954528?siteid=yhoof2
Think global, act… thematic?
For a portfolio that spans the globe, look no further than some of the thematic ETFs that have been popular throughout 2020.
Borders may be closed and travel plans relegated to bucket lists for now, but there’s never been a better time for investors to be thinking globally.
After a years-long streak of outperformance by U.S. equities, many analysts say it’s time to seek out better returns abroad. Luckily, there may be an easy way to accomplish that, while also investing in some of the most compelling themes of 2020 and the future.
An analysis by Todd Rosenbluth, head of mutual fund and ETF research for CFRA, finds that many of the exchange-traded funds and ETF categories that are hot right now have exposure that’s more global in nature than many investors may realize – more global, in fact, than popular benchmarks. That makes some of these ETFs a two-fer, Rosenbluth believes: they offer strong investment theses and diversified exposure.
“There’s no border for great companies,” Rosenbluth said in an interview. “There’s no border for great ideas or themes. A compelling investment theme makes sense globally.”
Rosenbluth’s analysis compares the widely-tracked MSCI All-World Index, which has a 57.7% weighting of U.S. stocks, with several popular strategies.
Clean energy ETFs, which have gotten a boost over the past few months on expectations of a Democratic, and thus climate-friendly, administration, have broad international exposure, Rosenbluth found. The Invesco Solar ETF TAN, +3.23% allocates only 45% of its portfolio to U.S. companies, a metric which falls to 32% of the portfolio of the iShares Global Clean Energy ETF. ICLN, +1.37% In the iShares fund, the second-largest represented country is New Zealand, a country Rosenbluth said he was surprised to see weighted so heavily.
“The research of these ETF managers means they’re finding the leaders within these investment themes regardless of where they’re domiciled even if someone like me wouldn’t have thought of them,” he said.
His research found similar patterns across different themes. The Global X Robotics & Artificial Intelligence ETF BOTZ, -0.36%, for example, has its biggest geographic concentration from Japan, at 45%, with the U.S. in second place at 35%.
That’s not to be confused with BETZ, the Roundhill Sports Betting & iGaming ETF, BETZ, -0.61% which MarketWatch profiled when it launched in June. BETZ has only 34% exposure to U.S. stocks, followed by Britain and Australia. In a sign investors believe in its thesis, the fund has pulled in $178 million in its six months of existence.
It’s ultimately up to each investor to decide what kind of geographic exposure he or she wants, but Rosenbluth argues that “the long-term trend is favorable” for the themes represented here. The coronavirus pandemic may have sped up adoption of some high-tech lifestyle transitions, and the 2020 presidential election goosed interest in clean energy, but all these technologies are here to stay, he said.
“Investors will likely continue to show interest in these in the future because the themes make sense,” he said.
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New Oriental Education (EDU) -- Ray Dalio - >>> 10 Best Growth Stocks To Buy Now According To Ray Dalio
Yahoo Finance
Sorina Solonaru
November 26, 2020
https://finance.yahoo.com/news/10-best-growth-stocks-buy-220447261.html
New Oriental Education & Technology Group Inc. (NYSE:EDU)
We begin with New Oriental Education & Technology Group Inc. (NYSE::EDU), the most recognized brand in Chinese private education, currently valued at $3.7 billion. Having previously said that “not investing in China is risky”, Bridgewater expects great performance from the stock. Dalio's EDU position was worth $42 million at the end of September after boosting his EDU holdings by 46.3% in Q3.
The most recent news is New Oriental’s secondary listing on the Hong Kong stock exchange, closing on its first day of trading at HK$1,365, a 14.7% increase from its offer price. The company plans to invest the net proceeds in its business growth and geographic expansion. According to Yahoo Finance, EDU is trading at a trailing P/E of 72. The Chinese education company had total revenues of $2.45 billion in FY2018 and managed to increase this to $3.6 billion in FY2020.
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>>> Sea Limited (SE) -
https://www.fool.com/investing/2020/12/06/3-stocks-that-can-double-again-in-2021/
One of this year's hottest stocks is still not a household name for most U.S. investors. Sea Limited is a fast-growing provider of online platforms in Southeast Asia. It started out as a gaming company a little more than a decade ago, but it now also operates the region's top e-commerce hub, Shopee. Its Sea Money digital payment and wallet platform isn't moving the needle just yet, but it is the fastest growing business for Sea Limited.
Things could get interesting on the fintech front in 2021. Sea Limited was awarded a digital bank license in its home country of Singapore on Friday. Revenue nearly doubled in its latest quarter, and Sea Limited is running on all cylinders. Its flagship online gaming platform was the relative laggard, and even there it came through with a 73% year-over-year revenue surge. There are now 572.4 million players on the platform. The stock has soared nearly fivefold in 2020, but until it becomes a household name outside of its home turf the ceiling remains high. <<<
>>> Sea Limited (SE) engages in the digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, rest of Asia, and internationally. It provides Garena digital entertainment platform for users to access mobile and PC online games, as well as eSports operations; and access to other entertainment content, such as livestreaming of gameplay and social features , such as user chat and online forums. The company also operates Shopee e-commerce platform, a mobile-centric marketplace that offers integrated payment and logistics infrastructure and seller services. In addition, it offers SeaMoney digital financial services to individuals and businesses, including e-wallet and payment services AirPay, ShopeePay, ShopeePayLater, and other digital financial services brands; and payment processing services for Shopee. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was founded in 2009 and is headquartered in Singapore.
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>>> Eaton Corporation plc (ETN) operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, wiring devices, and structural support systems; and residential, single phase power quality, emergency lighting and fire detection, and circuit protection and lighting products. The company's Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, explosion-proof instrumentation, utility power distribution equipment, power reliability equipment, and services. Its Hydraulics segment offers power, controls and sensing, and fluid conveyance products; and filtration systems solutions, industrial drum and disc brakes, and golf grips. The company's Aerospace segment provides hydraulic power generation and fuel systems, controls and sensing, and fluid and conveyance products for commercial and military use. Its Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, and fuel vapor components for vehicle industry. The company's eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution products, fuel tank isolation valves, and commercial vehicle hybrid systems. It serves industrial, institutional, governmental, utility, commercial, residential, information technology, renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, material handling, truck and bus, machine tools, molding, primary metals, and power generation markets, as well as original equipment manufacturers and aftermarket customers. The company was founded in 1916 and is based in Dublin, Ireland.
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>>> TE Connectivity Ltd. (TEL), together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaÂ?Pacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, antennas, relays, application tooling, and wire and heat shrink tubing products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and heat shrink tubing, interventional medical components, relays, and wires and cables for aerospace, defense, oil and gas, industrial equipment, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. TE Connectivity Ltd. sells its products to approximately 140 countries primarily through direct selling to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was incorporated in 2000 and is based in Schaffhausen, Switzerland.
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Sea Limited (SE) - >>> Forget Amazon. Here's 1 Stock to Hold for the Next Decade
This rising technology stock has outperformed the market in 2020 and could continue to do so in the future.
Motley Fool
by Lawrence Nga
Oct 27, 2020
https://www.fool.com/investing/2020/10/27/forget-amazon-1-stock-hold-next-decade-sea-limited/
One of the best-performing technology companies over the last decade is Amazon (NASDAQ:AMZN). Over the past 10 years, Amazon's share price went up more than 20-fold to reach a market capitalization of $1.6 trillion, thanks to the growth of its e-commerce and cloud computing businesses.
In the coming decade, it's not hard to imagine that Amazon would solidify its leadership in e-commerce and cloud computing segments, and also expand its newer businesses such as advertising and groceries. Yet, given its already huge market capitalization, it's unrealistic to expect Amazon's stock price to sustain the past decade's price trajectory for the next 10 years as well.
If you are looking for comparable stock performance, there are younger companies that have the potential to deliver better stock returns than Amazon by 2030. One of them is Sea Limited (NYSE:SE).
A rising giant with an admirable track record
Founded in Singapore in 2009 as an online gaming company, Sea Limited has since ventured into new business segments, notably e-commerce (Shopee) in 2015 and digital finance (Sea Money) in 2019. Historically, it operates across seven countries in Southeast Asia including Indonesia, Vietnam, Thailand, the Philippines, Malaysia, Singapore, and Taiwan. More recently, it has entered the Latin America and India markets. Its business expansion reflects favorably on its financials: Revenue rose by more than 700% to $2.2 billion between 2015 and 2019.
Many factors contributed toward Sea Limited's rapid rise to become a leading technology company in Asia. Notably, the company's incessant focus on localization has given it an enormous advantage over its peers. For example, Garena curates its games according to taste and also offer those games in local languages to its customers. Similarly, Shopee tailored its app -- in terms of language and product choices -- to address customers' different needs. Sea hires locals to lead its businesses, which results not only in a better understanding of customers in those markets but also a more effective and timely execution of business plans. For instance, Sea launched Shopee App in 2015 across seven markets simultaneously, in seven different versions (and languages), which is a testament to the soundness of its localization strategy.
The other important reason for Sea Limited's strong performance is the support of Tencent Holdings (OTC:TCEHY), both as a shareholder (25.6% share ownership) and partner. The relationship has benefited Sea in numerous ways, which include easy access to financial resources and management know-how, as well as a right of first refusal to publish Tencent's mobile and PC games in certain regions. This arrangement helped Sea become the largest gaming company in its operating regions (as measured by revenue) in 2019.
Though Sea's proven track record does not guarantee future success, it does assure investors that management knows what it's doing. Perhaps even more important is that it helps investors sit tight during tough times -- such as the recent COVID-19 market crash -- to benefit from Sea's long-term growth (more on this later).
Growth opportunities for the next decade
A solid track record ties in nicely with Sea Limited's long-term growth opportunities, and there are plenty of them.
To start with, Garena could grow its revenue for the foreseeable future thanks to its huge user base of 500 million quarterly active users (QAUs), and a low percentage of paying users of only 10% of QAUs (up from 8.4% in the same period last year). It is worth mentioning that Garena is actively growing its user base in newer markets like Latin America and India, which could further increase its already significant QAUs. Moreover, its average revenue per user of $1.40 remained low and could increase over time on the back of strong user engagement in existing games (such as Free Fire), as well as from future game launches. The latter will continue to benefit from Sea Limited's partnership with Tencent.
Similarly, Shopee is in a favorable position to grow at even higher rates than Garena, thanks to its market-leading position. Shopee is ranked No. 1 in terms of app downloads in the shopping category in Southeast Asia, and in the top three worldwide. As a market leader, Shopee benefits from network effects, in which an additional user or seller will add value to all the existing parties in its marketplace. If it can sustain this growth momentum, Shopee has a good shot at becoming the de facto marketplace in these markets. To this end, Shopee is investing heavily to sustain the growth of its sellers and customers, and it remains unprofitable since its inception. One thing to keep in mind, however, is that these investments could last for many years as Shopee tries to cement its leadership. Thus, investors are better off not having any expectations of a quick turnaround. Fortunately, Garena is already a profitable business and would serve as the cash register for Sea Limited's further investments in Shopee.
Also, it's worth mentioning that though Sea's digital finance arm, Sea Money, is still in an early stage of its development, it could quickly expand by leveraging on its sister companies. For example, Sea Money has been integrating its mobile wallet with Shopee, which results in a massive increase in usage. In July, Sea's mobile wallet accounted for 45% of Shopee's gross orders paid in Indonesia. The usage of Sea Money's services could grow even further as it deepens the integration with Garena and Shopee, and should serve as the next leg of Sea's growth.
Is Sea a buy now?
Alphabet subsidiary Google, in a joint report produced with Temasek and Bain, predicted that Southeast Asia's internet economy would triple by 2025, up from $100 billion in 2019. As the leading technology in this region, Sea Limited is nicely positioned to benefit from this tailwind.
One downside to investing in Sea right now is its high valuation. After surging by a monstrous 500%, the company's stock is currently trading at around 36 times 2019 revenue, a high price tag even if you consider all the positive factors mentioned above.
Hence, investing in Sea Limited at its current high valuation is dangerous, especially for investors who have a short investment horizon. But for those who are willing to hold on to the stock for the long term (more than five years), Sea might still be a reasonable buy given its stupendous growth prospects. For perspective, Sea doubled its first-half 2020 revenue to $1.6 billion.
With a market capitalization close to $80 billion, Sea Limited is already a massive company. Still, it will likely be worth much more a decade from now.
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>>> Sea Limited(SE) engages in the digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, rest of Asia, and internationally. It provides Garena digital entertainment platform for users to access mobile and PC online games, as well as eSports operations; and access to other entertainment content, such as livestreaming of gameplay and social features , such as user chat and online forums. The company also operates Shopee e-commerce platform, a mobile-centric marketplace that offers integrated payment and logistics infrastructure and seller services. In addition, it offers SeaMoney digital financial services to individuals and businesses, including e-wallet and payment services AirPay, ShopeePay, ShopeePayLater, and other digital financial services brands; and payment processing services for Shopee. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was founded in 2009 and is headquartered in Singapore.
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>>> MercadoLibre, Inc. (MELI) operates online commerce platforms in Latin America. It operates MercadoLibre Marketplace, an automated online commerce platform that enables businesses and individuals to list merchandise and conduct sales and purchases online; and MercadoPago FinTech, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, and allows merchants to process transactions via their Websites and mobile apps, as well as in their brick-and-mortar stores through QR and mobile points of sale. The company also offers MercadoFondo, an asset management product; and MercadoCredito, a lending solution. In addition, it provides MercadoEnvios logistics solution, which offers its platform technological and operational integration services with third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. Further, the company provides MercadoLibre Classifieds service that enables users to list their offerings related to motor vehicles, vessels, aircraft, and real estate and services outside the Marketplace platform. Additionally, it offers MercadoLibre Advertising platform, which enables retailers and various other consumer brands to promote their products and services on the Internet by providing branding and performance marketing solutions. The company also provides MercadoShops, a software-as-a-service hosted online store solution that enables users to set-up, manage, and promote their own Webstores. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina.
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>>> Wirecard’s Missing Billions Forces Out CEO, Panics Lenders
Bloomberg
By Clarissa Batino, Sarah Syed, and Jan-Patrick Barnert
June 19, 2020
https://www.bloomberg.com/news/articles/2020-06-19/bdo-unibank-says-it-s-one-of-banks-involved-in-wirecard-probe
Shares collapse for second day, lenders considering advice
Philippine banks say German payments firm isn’t a client
Markus Braun’s almost two decades as Wirecard AG’s chief executive officer ended after accusations about the company’s accounting culminated in a shock disclosure that it was unable to locate 1.9 billion euros ($2.1 billion).
James Freis has been appointed interim CEO, the German payments company said in a short statement Friday. A recent hire and former compliance executive at Deutsche Boerse AG, Freis was only named as a member of the management board on Thursday.
Braun’s exit comes after a catastrophic few days for Wirecard, which suffered a share price collapse after the two Asian banks that were alleged to be holding the missing cash denied any business relationship with the company.
Wirecard is now facing a potential cash crunch. The company warned Thursday that loans of as much as 2 billion euros could be terminated if its audited annual report is not published on Friday. Analysts at Morgan Stanley estimated that Wirecard has available cash of around 220 million euros if it cannot locate the missing $2.1 billion.
Wirecard’s lenders are considering hiring outside help as they seek to navigate the risk of a potentially massive default, a person familiar with the matter said.
Named CEO in 2002, Braun has put tens of millions of euros of his own funds into the firm. The value of his stake, which once made him a paper billionaire, has dwindled in the course of the rout.
His replacement is stepping into an almost unprecedented situation. Freis wasn’t supposed to join until July, when he was going to be responsible for a newly created department called “Integrity, Legal and Compliance.”
Freis was previously head of compliance at Deutsche Boerse AG, and held the position of Director of the U.S. Treasury Department’s Financial Crimes Enforcement Network, where he was responsible for the regulation of financial institutions.
The interim CEO will need to quickly reassure Wirecard’s business partners. Wirecard has licenses with Visa, Mastercard and JCB International, through which Wirecard’s banking arm issues its credit cards. If Wirecard is unable to find its missing cash, Visa and Mastercard may have cause to revoke the licenses.
“The big question is whether they retain the Visa and Mastercard licenses,” Neil Campling, analyst at Mirabaud said. “Without those they have no business.”
Mastercard said it is following the developments at Wirecard but did not want to comment on specific customer conversations or situations. Visa did not have an immediate comment.
Missing Cash
Wirecard claimed on Thursday that auditor Ernst & Young couldn’t confirm the location of the missing cash that was supposed to be held at two Asian banks and reported that “spurious balance confirmations” had been provided.
The confusion deepened on Friday when BDO Unibank Inc., the Philippines’ largest bank by assets, and the Bank of the Philippine Islands, said on Friday that Wirecard isn’t a client.
“It was a rogue employee who falsified documents and forged the signatures of our officers,” BDO Unibank CEO Nestor Tan said in a mobile phone message. “Wirecard is not even a depositor -- we have no relationship with them.”
A document purporting to show a link between Wirecard and the Bank of the Philippine Islands was “bogus” and may be part of an attempted fraud, the president of the Southeast Asian lender said in a phone interview.
Wirecard shares plunged as much as 52% in Frankfurt on Friday. The selloff in Wirecard’s bonds also intensified, with the company’s 500 million-euro bonds maturing in 2024 falling a further 14 cents to trade at 24 cents. Its 900 million euros of convertible bonds are now indicated at less than 10 cents on the euro.
Wirecard was worth 24.6 billion euros in September 2018 when it entered Germany’s Dax index, and widely considered as one of Germany’s few successful fintech stories. It was valued at about 2.4 billion euros on Friday morning.
Wirecard's shares fall about 80% after accounting revelations
Wirecard’s reversal of fortune has caught its supporters off guard. Some of the company’s most loyal shareholders are now dumping their stakes as allegations of accounting impropriety engulf the German payments company. Analysts are also quickly changing their recommendations, despite continued concerns about the company’s accounting.
As of Wednesday, 10 out of 25 analysts tracked by Bloomberg recommended buying the stock. Since then, at least nine analysts have removed their recommendations and three have downgraded the stock to sell.
German financial markets regulator BaFin said it is also examining Wirecard’s disclosure on Thursday as part of its investigation into whether the company violated rules against market manipulation, according to a spokeswoman.
BaFin has three investigations of Wirecard running: whether the company manipulated markets with its disclosures, whether Braun’s stock purchase ahead of the planned publication of the company’s annual report violated market abuse roles and whether the company and its management are fit to be the owners of a bank.
Braun has previously painted the company as a potential victim, resisting calls to resign and aggressively defending Wirecard against accusations of accounting fraud, led by a series of articles in the Financial Times.
“It cannot be ruled out that Wirecard has been the victim in a substantial case of fraud,” Braun said in a statement published overnight.
The company temporarily suspended its outgoing Chief Operating Officer Jan Marsalek, it said in a statement late Thursday. Marsalek -- who has been suspended on a revocable basis until June 30 -- had tried to get in touch with the two Asian banks and trustees over the past two days to recover the missing money, but wasn’t successful, a person familiar with the matter said Thursday. It’s unclear if the funds can be recovered, the person added.
German politicians are now asking how such a rapid collapse could happen to a fintech company that was once worth more than Deutsche Bank, and previously supported by local regulators. Early last year BaFin took the unprecedented step of temporarily banning short sales of Wirecard shares following reports of suspicious accounting practices.
“Markus Braun’s resignation was overdue,” said Danyal Bayaz, a lawmaker with Germany’s Greens. “Wirecard is not a small fintech, but a DAX member.”
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>>> Hermès International (HESAY) engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, clutches, briefcases, luggage, small leather goods, diaries and writing objects, saddles, bridles, and a range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living products comprising furniture, lighting, plaids, decorative objects, tableware, birth gifts, beach fabrics, furnishing fabrics, and wallpapers; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious hides. It sells its products through a network of 310 stores, including 219 directly operated stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores and in airport duty-free stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions is a subsidiary of H51 SAS.
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>>> Some Globetrotting Helps This Fintech ETF
ETF Trends
February 18, 2020
https://finance.yahoo.com/news/globetrotting-helps-fintech-etf-171057934.html
The fintech theme is soaring to start 2020 and one of its standouts is the ARK Fintech Innovation ETF (ARKF) , which is higher by nearly 13% year-to-date after vaulting to another record high last Friday.
ARKF invests in equity securities of companies that ARK believes are shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs .
One potent ingredient with ARKF is that its active management style doesn't confine the ETF to the domestic fintech space. Rather, the fund features ample international exposure, which is important considering the broad adoption and reach of fintech outside the U.S.
Argentina's Mercadolibre (MELI) and Brazil's StoneCo (STNE) , the former of which is a major ARKF component, are among the attractive ex-US fintech names.
Fintech companies looking to carry over their wave of disruption, especially in the online payments space can look to Latin America for potential opportunities. This, in turn, could create interest in fintech-focused ETFs looking to add to their core portfolios of financial disruption companies by looking outside of developed markets.
In Latin America, online payments is still a relatively new concept as opposed to more developed economies where they have become standard fare.
“MELI and STNE are lesser known companies with similar businesses and similar charts. MELI is mostly known as an e-commerce firm — something of a cross between Google and Amazon.com. But the Argentine company is also becoming a financial-service provider by providing loans and financing to millions of small businesses in Latin America,” according to TradeStation.
American Names Help, Too
The payment processing space is seeing a growing number of big bets placed by venture capitalists, which could give financial technology ETFs a boost. It’s a $1.9 trillion industry that the largest tech firms are trying to tap into
“Stocks like Square (SQ) and PayPal (PYPL) not only stand at the crossroads of the new digital economy. They’ve also outperformed the S&P 500 and Nasdaq-100 by a wide margin so far in 2020,” according to TradeStation. “Two Latin American firms, MercadoLibre (MELI) and StoneCo (STNE) make the list as well. That kind of strong price action is a classic sign of investor rotation, a process of large institutions shifting capital into certain industries. The fact it’s happening early in the year is another sign of accumulation by new buyers.”
Square, Mercadolibre and PayPal combine for nearly 20% of ARKF's weight.
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>>> Shopify Inc. (SHOP), a commerce company, provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics and reporting, and access financing. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada. <<<
$NIO CEO of Nio Inc. Is Billionaire William Li or Li Bin (Chinese: ??; pinyin: Li Bin) is a Chinese business executive and entrepreneur.
The founder and CEO of the electric car manufacturer NIO, he is known as the "Elon Musk of China". ( Tesla $TSLA )
In February 2019 Forbes estimated Li's net worth to be US$1.4 billion. https://www.forbes.com/profile/william-li/#2ede0c1711a1
>>> Equinor ASA (EQNR), an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development & Production Norway; Development & Production Brazil; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; markets and trades in electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2019, it had proved oil and gas reserves of 6,004 million barrels of oil equivalent. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was founded in 1972 and is headquartered in Stavanger, Norway.
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>>> Kerry Group plc (KYGA), together with its subsidiaries, develops, manufactures, and delivers technology based taste and nutrition solutions for the food, beverage, and pharmaceutical industries in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Taste & Nutrition and Consumer Foods. The Taste & Nutrition segment manufactures and distributes a portfolio of functional ingredients and actives; and offers taste and nutrition technologies, systems, and solutions. The Consumer Foods segment manufactures and supplies added value branded and consumer branded chilled food products primarily to the Irish, the United Kingdom, and international markets. This segment offers meat and savory products, dairy products, and meal solutions for supermarket chains, convenience stores, and independent retailers under the LowLow, Cheestrings, Dairygold, Charleville, Denny, Galtee, Richmond, Wall's, Mattessons, Fridge Raiders, Fire & Smoke, and Yollies brand names. It also produces supermarket private label products, such as chilled and frozen ready meals, cooked meats, and cheese and dairy products. In addition, the company is involved in the agri business. Kerry Group plc was founded in 1972 and is headquartered in Tralee, Ireland.
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>>> ICON Public Limited Company (ICLR), a clinical research organization, provides outsourced development services to the pharmaceutical, biotechnology, and medical device industries in Ireland, rest of Europe, the United States, and internationally. It specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. The company's clinical development services include product development planning, strategic consulting, study protocol preparation, clinical pharmacology, pharmacokinetic and pharmacodynamic analysis, site feasibility, patient recruitment and retention, digital patient and site, project management, clinical operations/monitoring, patient centric monitoring, data management, and adaptive and virtual trial services. Its clinical development services also comprise medical imaging, biostatistics, medical affairs, pharmacovigilance, strategic regulatory, electronic endpoint adjudication, medical writing and publishing, interactive response technologies, functional, strategic resourcing central laboratory, bioanalytical laboratory, biomarket development, strategy and analytics, late phase research, patient centered science, and medical device and diagnostics research services, as well as access, commercialization, and communication services, and research trials for us government agencies. The company was founded in 1990 and is headquartered in Dublin, Ireland.
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>>> STERIS plc (STE) provides infection prevention and other procedural products and services worldwide. It operates in four segments: Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied Sterilization Technologies. The Healthcare Products segment offers cleaning chemistries and sterility assurance products; accessories for gastrointestinal (GI) procedures, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in the operating room, including surgical tables, lights, equipment management services, and connectivity solutions. It also provides capital equipment installation, maintenance, upgradation, repair, and troubleshooting services. This segment offers its products and services to acute care hospitals, ambulatory surgery centers, and GI clinics. The Healthcare Specialty Services segment provides solutions and managed services, such as instrument and endoscope repair and maintenance solutions; custom process improvement consulting services; and outsourced instrument sterile processing services to acute care hospitals and other healthcare settings. The Life Sciences segment offers formulated cleaning chemistries, barrier products, sterility assurance products, steam and vaporized hydrogen peroxide sterilizers, and washer disinfectors. The Applied Sterilization Technologies segment provides contract sterilization services through a network of approximately 50 contract sterilization and laboratory facilities. The company was founded in 1985 and is based in Dublin, Ireland.
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>>> Aptiv PLC (APTV) designs, manufacturers, and sells vehicle components worldwide. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segment, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle's electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. The Advanced Safety and User Experience segment provides critical components, systems integration, and software development for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, and autonomous driving technologies. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC is headquartered in Dublin, Ireland.
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>>> Is Alibaba Really The Amazon Of China?
Forbes
9-24-19
https://www.forbes.com/sites/greatspeculations/2019/09/24/is-alibaba-really-the-amazon-of-china/#2d5586da12c0
Alibaba is often referred to as the ‘Amazon of China’ because of its growth trajectory being nearly identical to that of Amazon. Both companies started off as e-commerce platforms, but over the years evolved into much more diversified companies with a significant focus on technology. But are their business models really similar to each other?
Trefis attempts to answer this question by comparing the various revenue streams for Alibaba vs Amazon in an interactive dashboard. While Amazon is the larger of the two companies by a significant margin, both companies have quite similar revenue streams.
When comparing Commerce as well as Cloud revenues, Amazon’s revenues are nearly 15x that of Alibaba’s.
However, Alibaba’s advertising revenues are quite comparable to that of Amazon’s.
The gap between Subscription Revenues for both companies is likely to continue expanding on the back of Amazon’s wider and more local focused reach.
Despite the law of large numbers being against Amazon, the U.S. company’s reach is likely to remain an order of magnitude higher than that for the Chinese giant.
That said, a side-by-side comparison of the two companies shows that Alibaba’s title of ‘Amazon of China’ really does fit.
Alibaba vs Amazon
A Detailed Comparison Of Historical & Expected Trends In Revenues For Both Companies
Total Revenues
Amazon revenues:
2016 revenue $136 bn; 2018 revenue $232.9 bn; 2016-18 growth of 71.3%.
2020E revenue of $350.2 bn; 2018-20E growth of 50.4%.
Alibaba revenues:
2016 revenue $9.4 bn; 2018 revenue $23.2 bn; 2016-18 growth of 146.1%.
2020E revenue of $41.7 bn; 2018-20E growth of 79.9%.
Ratio of Amazon’s to Alibaba’s total revenues had reached from 14.5x in 2016 to 10.1x in 2018. Considering 2018-20E growth of 50.4% in Amazon’s total revenues versus expectations of 79.9% for Alibaba’s total revenues, we expect the ratio of revenues to narrow further to 8.4x by 2020.
Below, we summarize key trends from our detailed interactive dashboard comparing revenue streams for Alibaba vs Amazon
Commerce revenue
Ratio of Amazon’s to Alibaba’s commerce revenues have fallen from 33.6x in 2016 to 17.3x in 2018. Considering 2018-20E growth of 39.8% in Amazon’s commerce revenues versus expectations of 97.2% for Alibaba’scommerce revenues, we expect the ratio of revenues to shrink further to 12.2x by 2020.
Cloud revenue
Ratio of Amazon’s to Alibaba’s cloud revenues had reached from 32.6x in 2016 to 17.5x in 2018. Considering 2018-20E growth of 75.5% in Amazon’s cloud revenues versus expectations of 145.8% for Alibaba’s cloud revenues, we expect the ratio of revenues to reach 12.5x.
Advertising revenue
Notably, Alibaba’s advertising revenues have been larger than Amazon’s over 2016-17. But the ratio of Amazon’s to Alibaba’s advertising revenues flipped from 0.6x in 2016 to 1.1x in 2018. Given Amazon’s push into advertising over recent years, we expect the ratio of revenues to reach 1.7x by 2020 in Amazon’s favor.
Subscription revenue
Ratio of Amazon’s to Alibaba’s subscription revenues had reached from 6.6x in 2016 to 7.7x in 2018. Considering 2018-20E growth of 80.3% in Amazon’s subscription revenues (driven by the geographical expansion in Amazon Prime video offerings) versus expectations of 60.4% for Alibaba’s subscription revenues, we expect the ratio of revenues to reach 8.7x.
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>>> Chr Hansen Holding A/S (CHYHY) is a Denmark-based bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. The Company’s business is divided into three divisions, namely Food Cultures & Enzymes, Health & Nutrition and Natural Colors. The Food Cultures & Enzymes division develops and produces cultures, enzymes and probiotics for the food industry in general and the dairy industry in particular. The Health & Nutrition division develops, produces and sells products for the dietary supplement, over-the-counter pharmaceutical, infant formula and animal feed industries. The Natural Colors division develops and supplies natural color solutions to the food and beverage industry, in particular the beverage, confectionery, ice cream, dairy, fruit preparation and prepared food segments. The Company operates in Europe, North and South America, as well as Asia Pacific, Middle East and Africa.
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Shaw Communications (SJR) - >>> 3 Monthly Dividend Stocks to Buy Today
by Aaron Levitt
InvestorPlace
June 21, 2019
https://finance.yahoo.com/news/3-monthly-dividend-stocks-buy-185123145.html
Retirement: It’s all about one thing and that’s income … replacing a steady paycheck with your savings. With that, dividend stocks have plenty of appeal for retirees. Not only can you score higher yields than bonds, but you have the ability to grow those payouts over time as well. However, dividend stocks do have one major drawback.
Their payment schedules.
Most dividend stocks pay on a quarterly or even semi-annual basis. And while that may not seem like a problem, for many retirees used to a monthly or bi-weekly paycheck balancing cash flows can be a hard pill to swallow. After all, your mortgage, cable bill and car payments are due each month. To that end, getting a monthly dividend could be the answer to budgeting issues.
Luckily, there are plenty of dividend stocks that do happen to payout monthly. Here are three of the best.
Main Street Capital Corp (MAIN)
Dividend Yield: 5.89%
Most investors have never heard of businesses development companies (BDCs). That’s a shame because they can be some of the biggest yielding stocks around. BDCs are set up as pass-through entities much like real estate investment trusts, and similarly must pay out at least 90% of their earnings as dividends. How they earn that income is by loaning cash to mid-sized firms — companies too big to ask the local bank for a loan, but not big enough to launch a significant bond offering — at competitive rates. The best way to really think of them is like public-private equity firms.
And when it comes to BDCs, Main Street Capital (NASDAQ:MAIN) could be one of the best.
MAIN has provided capital to more than 200 private companies and thanks to its underwriting and deal standards, it has been very successful at turning a big profit on those loans. Just for the first quarter of this year, MAIN has already seen its investment income rise by 10% year-over-year. Those sorts of gains have allowed the firm to become a great dividend stock since its IPO in 2007. The BDC has managed to grow its payout by 127% since then.
Today, you can score a great recurring monthly dividend with a current yield of 5.89%. The best part is that MAIN’s management likes to reward shareholders further with extra supplemental dividends. This allows the BDC to use excess capital if a great deal can be had or for dividends. Adding those extra payouts in, and investors are looking at closer to 7.2% yield.
BDCs like MAIN provide a much-needed service to many firms. And thanks to its underwriting skill and focus on quality firms, MAIN has quickly become one heck of a dividend stock.
Shaw Communications (SJR)
Dividend Yield: 4.5%
One sector that can be a fertile hunting ground for dividend stocks, and is also known for its stability, is the telecommunications industry. Top stocks like AT&T (NYSE:T) and Verizon (NYSE:VZ) are in plenty of income portfolios. The reason is easy to see. Predictable fixed costs and demand allow telcos to pay out reliably healthy dividends. The problem is T and VZ aren’t monthly dividend stocks.
But Canada’s Shaw Communications (NYSE:SJR) is.
Shaw remains one of Canada’s largest telecoms and offers the usual bundle of services, including cable, internet and wireless phone services. It has been doing this for decades just like T and VZ here at home. And SJR has also tackled the problem of cord cutting head on. The telecom has been able to successfully convert customers to faster internet service to overcome lower cable subscriptions. This has helped boost revenues. At the same time, SJR has been one of the first movers in Canada for new 5G networks. That will give it a heads-up in bringing faster mobile internet, IoT and other applications to the nation.
As Shaw moves forward in these areas, investors can sit back and collect a hefty monthly yield. Currently, SJR pays 4.5%. Now, that dividend will fluctuate based on changes to the U.S./Canadian dollar. However, given Shaw’s stability and potential growth, it’s a small price to pay for a great dividend stock.
LTC Properties (LTC)
Dividend Yield: 4.89%
Honing in on so-called mega-trends is a great way to find dividend stocks that will stand the test of time. For monthly-dividend payer LTC Properties (NYSE:LTC) that mega-trend is the “Graying of America.”
Thanks to advances in medicine, lifespans are only increasing and longevity is almost assured at this point. LTC is uniquely positioned to take advantage of this fact. The firm invests in the senior housing and assisted living facility sectors of the healthcare property market. Currently, the firm owns/invests in roughly 200 properties that are right in the sweet spot for the nation’s aging baby boomers. Demand for these facilities continues to grow as more seniors need aid to get along.
The key is that LTC doesn’t operate the facilities or even own the buildings in many cases. What it does is provide financing for owner/operators to construct and renovate their properties or it buys properties from owners in a sale-leaseback transaction. It’s basically a mortgage lender that collects a monthly rent check. This position in the sector allows it to avoid some of the profitability issues that can result in senior living and assisted living facilities.
It also allows for some safety and steady profits on its end. Year-over-year, LTC saw a gain in FFO for the first quarter of 2019. Steady FFO gains have allowed it to raise its dividend over 46% since 2008. Currently, LTC yields 4.89%.
All in all, LTC is in the right area at the right time. And that makes it a great monthly dividend stock to own.
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>>> Novozymes A/S produces and sells industrial enzymes and microorganisms worldwide. The company offers agriculture solutions, including crop protection, and animal health and nutrition solutions; fermentation, lignecellulosic hydrolysis, liquefaction, process enhancement, and saccharifaction solutions for bioenergy; baking, beverages, dairy, and protein ingredients for the food and beverage industry; and laundry, dishwashing, hand washing, and cleaning solutions for the household care industry. It also provides wastewater solutions, such as additives, biogas production, industrial bio cleaning, compound removal, odor control, and system start-up solutions; and textile solutions comprising bioscouring, bleach clean-up, desizing, denim finishing and abrasion, and biopolishing solutions. In addition, the company offers forest products that include bleach boosting, deinking, fiber modification, effluent control, pitch and stickies control, and starch modification products; and leather solutions, which comprise biopreparation, degreasing, and re-bating. Further, it provides pharmaceutical solutions, including lipases, immobilized lipases, and proteases for biocatalysis; and rtrypsin for cell culture. Novozymes A/S has a strategic collaboration with Boehringer Ingelheim Animal Health for the research and development, production, marketing, and sale of a portfolio of probiotic products. The company was founded in 1925 and is headquartered in Bagsvaerd, Denmark.
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Mark Mobius - >>> Where to Invest $1 Million Right Now
Five experts reveal promising investment options for substantial sums.
Bloomberg
By Frederik Balfour, Suzanne Woolley, Edward Robinson and Simone Foxman
November 27, 2018 | Updated on March 3, 2019
Mark Mobius
Founder of Mobius Capital Partners
https://www.bloomberg.com/features/how-to-invest-a-million-dollars/?srnd=premium
When I first started investing in emerging markets in 1987, they accounted for just 5 percent of global market cap, and today it’s about 40 percent. Our funds could only invest in six markets, and today it’s about 70. That makes diversification so much easier. Now is the time to buy in emerging markets, where we are seeing a terrific recovery.
Brazil is up 40 percent from its bottom, but there is still upside as every sector is going to benefit from a reform-minded government. There is a sea change in the whole political environment in the wake of scandals still being prosecuted. Take Petrobras, one of the world’s largest oil and gas companies, which is changing its whole system top-to-bottom to ensure corruption won’t happen. All companies are aware of corporate governance and making sure they are on the up-and-up. This is very positive for foreign investors. With more law and order, the consumer sector will do particularly well.
If you like technical analysis, many of the markets had a double bottom. There are still low price-to-earnings and price-to-book ratios. PE valuations in Russia are only five times; that’s below even Pakistan. The Russian market looks very, very cheap.
Based on fundamentals, we like the consumer-oriented companies in India, whose economy is looking to 8 or 9 percent growth. Software is big in India, and we like medium-sized companies in traditional industries adopting internet solutions. India’s byzantine distribution system is changing dramatically because of technology, tax reforms and the elimination of tariffs between states within the country. Despite the challenges facing them, Amazon and Walmart are forcing local companies to raise their game.
There are a lot of bad loans at big banks, and the government will bail them out and recapitalize them. That’s going to weigh on the currency. We are going to see a weakening in the rupee because of the coming election and the necessity for the ruling BJP to give farmers goodies. But this weakening is temporary, and the central bank has been good in terms of stabilizing the currency over time. I would put 30 percent of emerging markets money in India.
We also are looking at winners from the China-U.S. trade war. Vietnam stands to gain as manufacturing is relocating there from southern China. The same is true elsewhere in Southeast Asia. Mexico, which reached a trade deal with the U.S. and Canada last year, is also a beneficiary. Global trade is like a big balloon: Push one place, it goes out in another.
In completely bombed-out countries like Turkey, there will always be opportunities. The losers are the guys in debt. Those not heavily in debt will be winners, get market share and make acquisitions. It is still a manufacturing powerhouse that sells to Europe. The Turkish lira falling 70 percent is excessive. Things will be more stable and maybe have some upside potential.
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