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    General Motors Posts Lower 2nd-Quarter US Sales

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  • U.S. Cases Rise 1.2%; Call for Antibody Therapy: Virus Update
    Bloomberg

    U.S. Cases Rise 1.2%; Call for Antibody Therapy: Virus Update

    (Bloomberg) -- U.S. virus cases increased by 1.2%, less than the seven-day average of 1.8%. A former Food and Drug Administration head said the U.S. needs a better pandemic strategy and should start by stockpiling therapeutic antibodies before authorizing their use.A top Houston-area county official pleaded with Texas state leaders to let him issue a stay-at-home order. Israel is considering new restrictions after Prime Minister Benjamin Netanyahu said a resurgence is creating an emergency.Mexico overtook France with the fifth-deadliest outbreak and the World Health Organization reported a one-day high for global cases Saturday.Key Developments:Global Tracker: Cases top 11.3 million; Deaths exceed 531,000World economy that took elevator down faces steep stairs back upNigerian security response to Covid is deadlier than the diseaseMexico overtakes France to have fifth-deadliest virus outbreakAustralian state to give lockdown residents payout, suspend rentSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click VRUS on the terminal for news and data on the coronavirus.U.S. Cases Rise 1.7%, Death Pace Slows (4 p.m. NY)Coronavirus cases in the U.S. increased by more than 34,000 from the same time on Saturday, to 2,852,807 million, according to data collected by Johns Hopkins University. The 1.2% increase was below the average daily increase of 1.8% over the past week. Fatalities rose to 129,718, a slower increase than the day before.New York’s already low increase in cases dropped further, to a 0.1% rise. The seven-day average rise had hovered around 0.2% since early June. The state, once the epicenter of the nation’s outbreak, reported 533 new cases and 8 deaths.California reported 5,410 new cases, an increase of 2.1%. In total, 260,155 people in the state have tested positive. The number of deaths rose by 18 to 6,331, though the state warned of possible delays in some reporting.Florida reported 200,111 cases, up 5.3% from a day earlier and equal to the average increase for the previous seven days. Deaths reached 3,731, an increase of 0.8%. In Miami-Dade County, the number of patients in hospitals rose 4.9%, the biggest jump in four days.Arizona reported 3,536 new cases, a 3.7% rise, pushing the total to 98,089. The hard-hit state has a 4.1% seven-day average for new infections. Deaths increased by 4 four, down from 17 on Saturday and a record 88 on Wednesday, putting the total at 1,809.New Jersey reported 398 new cases, compared with to 303 the day before, as Governor Phil Murphy warned of a rise because of travel from hot spots. The state’s total cases are now 173,402. Deaths rose slightly to 28, for a total of 13,355.California Infections Increase by 2.1% (2:05 p.m.)California reported 5,410 new Covid-19 cases, an increase of 2.1% to 260,155. Deaths rose by 18 to 6,331. The numbers may not represent final day-over-day changes as the reporting of test results can be delayed, according to the state Department of Public Health. The data show cumulative infections are disproportionately the highest among Latino residents and the 18-to-49 age group.Protests Added to Miami-Dade Cases: Mayor (2 p.m. NY)Miami-Dade County Mayor Carlos Gimenez said protests over the death of George Floyd contributed to a rise in infections in South Florida, but weren’t the only trigger.“Our people, our residents, I think they let their guard down and started to socialize,” Gimenez said on CBS’s “Face the Nation.” “That also had to do with it. So it’s all the above. I’m not saying it’s just that, but it was a contributing factor.”Gimenez pushed back on President Donald Trump’s characterization in his July 4th remarks that 99% of cases are harmless by noting a rise in deaths of people who contract the virus: “The virus is not harmless. No, absolutely not.”Houston Needs Stay-Home Order, Chief Says (12:45 p.m. NY)The hard-hit Houston area needs more restrictions, but the state government has blocked local officials from acting to limit the spread of the virus, Harris County Chief Lina Hidalgo said. The order by Governor Greg Abbott last week to wear face coverings helps, but doesn’t go far enough, she said.“As long as we’re doing as little as possible and hoping for the best, we’re always going to be chasing this thing,” Hidalgo said on ABC’s “This Week.” “Folks need to stay home and I need the authority to enforce it.”Phoenix Mayor Faults FEMA on Tests (12:30 p.m. NY)Phoenix Mayor Kate Gallego said the city opened much too early and needs to do more tests but her pleas to expand community-based evaluations have been rebuffed, including by the Federal Emergency Management Agency.“We are in a crisis related to testing,” Gallego told ABC’s “This Week.” FEMA said “they’re moving away from that, which feels like they’re declaring victory while we’re still in crisis mode.”“We had crowded nightclubs handing out free champagne, no masks,” she said.U.K. Cases Continue to Mount (12:14 p.m. NY)The Department for Health and Social Care reported that the U.K. had another 516 positive cases on Saturday, down from 624 the day before and taking the total to more than 285,000.There were 22 new deaths from the virus.Arizona Cases Rise Less Than Week’s Average (11:45 a.m. NY)Arizona reported 3,536 new cases, a 3.7% rise, pushing the total to 98,089. The hard-hit state has a 4.1% seven-day average for new infections.Deaths increased by four, down from 17 on Saturday and a record 88 on Wednesday, putting the total at 1,809. Fatalities among those over age 65 accounted for 73% of all state deaths, according to the Department of Health website.Florida Cases Rise in Line With Average (10:40 a.m. NY)Florida reported 200,111 Covid-19 cases on Sunday, up 5.3% from a day earlier, compared with an average increase of 5.3% in the previous seven days. Deaths among Florida residents reached 3,731, an increase of 0.8%, according to the report, which includes data through Saturday.Cumulative hospitalizations of Florida residents rose by 1% to 15,895. The new rate of people testing positive rose to 15% for Saturday, from 14.1% a day earlier.In Miami-Dade County, the number of Covid-19 patients in hospitals rose 4.9%, the biggest jump in four days, with a 3.8% one-day jump in patients in intensive-care units.Too Soon to Say If RNC Florida Events Safe (10:28 a.m. NY)FDA Commissioner Stephen Hahn told CNN it’s too soon to tell if it’s safe to host part of the Republican National Convention next month in Florida.Originally scheduled to be held in Charlotte, the nominating convention -- including Trump’s acceptance speech -- was partially moved to Jacksonville, after North Carolina Governor Roy Cooper, a Democrat, disagreed with hosting the Aug. 24-27 event at full scale out of concern of the virus spread.Second Spanish Lockdown Declared (10 a.m. NY)A lockdown has been ordered for a region of Galicia in northwestern Spain, restricting travel in and out of A Marina for about 70,000 residents. The five-day measure was ordered after cases started to rise from two different outbreaks.Spain put an agricultural region with more than 200,000 residents under indefinite lockdown on Saturday. The number of cases in the Segria region of 210,000 has soared 20% in the past two weeks to 3,312. Four of nine outbreaks currently being monitored by authorities are associated with companies harvesting and processing fruit and vegetables.New York Cases Rise 0.1% (9:20 a.m. NY)The number of new cases in New York rose 0.1%, less than the seven-day average. Fewer than 1% of tests conducted were positive.On Monday, New York City officially kicks off “Phase Three” of reopening, paving the way for legions of beauty businesses — nail salons, tanning studios and tattoo parlors — to open their doors to customers for the first time in months.Greece Curbs Travel From Serbia (9:14 a.m.)Greece decided to suspend access for Serbian citizens from all points of entry based on the analysis of the latest epidemiological data, according to Alternate Government Spokeswoman Aristotelia Peloni. All except essential travel will be banned from July 6 to July 15.U.K. to Boost Spending on Jobs, Health (8:46 a.m. NY)The U.K. will plow 800 million pounds ($1 billion) into job centers in an effort to cope with a surge in unemployment in the wake of the coronavirus pandemic.The head of England’s National Health Service set the U.K. government a challenge to fix the country’s social-care system within a year. Health Secretary Matt Hancock told the BBC on Sunday that about 30% of U.K. deaths from Covid-19 had been in care homes.The Observer on Sunday reported that Chancellor Rishi Sunak is considering Resolution Foundation proposals to issue 500 pound-vouchers for all adults and 250-pound vouchers for children to spend in the sectors of the economy worst-hit by the virus.Tokyo Elects Governor in Virus-Clouded Vote (7:47 a.m. NY)Tokyo Governor Yuriko Koike declared victory in an election for a second term, as the city tries to keep a fresh surge of Covid-19 in check and maintain hopes of hosting the Olympics in 2021.Koike, the first woman elected to govern the 14 million-strong city, prevailed over 21 challengers on Sunday to win another four-year term, national public broadcaster NHK and other local media projected, based on exit polling. She had gained support over the past few months for her management of the disease, which bolstered her popularity ahead of the election.Philippine Cases Jump as Economy Reopens (7:30 a.m. NY)Cases in the Philippines rose by a record on Sunday, which the Health Department attributed to increased contact among the population amid an easing of community quarantine measures.The Southeast Asian nation reported 2,434 new infections, bringing total cases to 44,254. The previous daily record was 1,531 cases on July 3, according to data compiled by Bloomberg. The Health Department said the numbers are subject to change. More than 1,200 people have died.Iran Has Highest Fatalities in Day (6:05 a.m. NY)In Iran, the number of fatalities rose to 163 on Sunday, one more than the previous highest daily toll set a week ago. The death count reached 11,571 from a total of 240,438 known infections, with 2,560 new cases reported overnight.Ghana’s President Isolating After Exposure (6:02 a.m. NY)Ghana’s President Nana Akufo-Addo will isolate for 14 days starting July 4 after being exposed to a Covid-19 case, the Information Ministry said in a statement late Saturday. He tested negative on that day, it added.Ghana has reported 20,085 cases, including 122 deaths, according to the West African nation’s health service.Netanyahu Says Israel in State of Emergency (6 a.m. NY)Israel is in a state of emergency due to a resurgent coronavirus outbreak, and additional steps are needed to stem the spread, Prime Minister Benjamin Netanyahu said on Sunday.The cabinet will reconvene within the coming day to decide on new restrictions and will present a plan within the next few days to address the economic challenges the pandemic is posing, he said at the opening of the weekly cabinet meeting.Parliament “cannot behave as though it’s business as usual,” Netanyahu said.Deadliest Day in Indonesia (5:12 p.m. HK)Indonesia reported 82 deaths from the coronavirus on Sunday, the highest single-day spike in fatalities, taking the total to 3,171, the health ministry said. The country with the most infections in Southeast Asia also reported 1,607 news cases in the past 24 hours, taking the total to 63,749.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • One killed as driver barrels into crowd of protesters in Seattle
    MarketWatch

    One killed as driver barrels into crowd of protesters in Seattle

    One of two people hit by a man who drove his car onto a closed Seattle freeway and into a crowd protesting police brutality has died.

  • Hedge Funds Are Souring On Solaris Oilfield Infrastructure, Inc. (SOI)
    Insider Monkey

    Hedge Funds Are Souring On Solaris Oilfield Infrastructure, Inc. (SOI)

    Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]

  • Hedge Funds Are Warming Up To Harpoon Therapeutics, Inc. (HARP)
    Insider Monkey

    Hedge Funds Are Warming Up To Harpoon Therapeutics, Inc. (HARP)

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Here is What Hedge Funds Think About Veoneer, Inc. (VNE)
    Insider Monkey

    Here is What Hedge Funds Think About Veoneer, Inc. (VNE)

    How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]

  • Were Hedge Funds Right About Dumping TOTAL S.A. (TOT)?
    Insider Monkey

    Were Hedge Funds Right About Dumping TOTAL S.A. (TOT)?

    How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]

  • Hedge Funds Are Betting On Insteel Industries Inc (IIIN)
    Insider Monkey

    Hedge Funds Are Betting On Insteel Industries Inc (IIIN)

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Hedge Funds Are Wrong About The Providence Service Corporation (PRSC)
    Insider Monkey

    Hedge Funds Are Wrong About The Providence Service Corporation (PRSC)

    We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

  • Warren Buffett's Berkshire Hathaway adds to energy portfolio, buys Dominion Energy gas lines in $9.7B deal
    USA TODAY

    Warren Buffett's Berkshire Hathaway adds to energy portfolio, buys Dominion Energy gas lines in $9.7B deal

    Dominion has more than 7 million energy customers across 20 states in the U.S. Berkshire Hathaway provides service to 12 million worldwide customers.

  • Bloomberg

    Africa’s Biggest Investment Takes Shape Amid Islamist Threat

    (Bloomberg) -- Dozens of soldiers clutching AK-47s and grenade launchers watch over roaring bulldozers on the white sand beach that meets a tropical turquoise sea. They’re guarding Africa’s biggest investment: a $23 billion project to export Mozambique’s natural gas from an area increasingly besieged by an Islamist insurgency.Companies led by Total SA will pump the gas from wells about 40 kilometers (25 miles) offshore, cool it to temperatures below minus 260 degrees Fahrenheit so that it turns to liquid, then ship it to electricity plants from France to China. The consortium is about to finalize almost $16 billion in project financing -- another record for the continent.“The work is immense,” said Ronan Bescond, the 44-year-old French chemical engineer who Total chose to lead the project after a career of nearly two decades at the company. “The first cargo of LNG must be in 2024. And we are on the right track,” he said to a handful of reporters in a prefabricated room at the site 32 kilometers south of the Rovuma River that marks the border with Tanzania.The obstacles facing a project that’s expected to transform the impoverished southeast African nation are huge.To achieve the target of first production for an undertaking worth billions of dollars more than Mozambique’s entire economy, developers need to move thousands of tons of equipment through territory thick with Islamic State-aligned insurgents. At one stage, a Covid-19 outbreak saw the Total site accounting for three in four of the country’s confirmed infections. All this as natural-gas prices plunged to near 25-year lows.Militants who first pledged allegiance to IS in 2018 have carried out increasingly brazen attacks this year.Deadly RaidLast week, they raided Mocimboa da Praia for a third time, and occupied the town for as long as three days. It’s a crucial supply hub just 60 kilometers south of the project site and the closest port.At least eight workers for Total subcontractors Fenix Construction Services Lda died when their vehicle was ambushed in the attack, the company said in a statement. Three workers are still missing, it said.Before the gas discoveries and insurgency, the remote coastline was more famous for luxury tropical island resorts. Last month, one of the nearby hotels offered a discount price of $19,820 a night to hire out an island as a refuge from the coronavirus.The private military company that Mozambique hired in April to provide air support to government troops in the form of helicopters fitted with machine guns has struggled to quell the violence. Lionel Dyck, the founder of Dyck Advisory Group, the firm the government employed, declined to comment when contacted by mobile phone.IS WarningGovernments including South Africa, the U.S. and Portugal have indicated willingness to help fight the insurgency.“The insurgency is a challenge but we’re happy that our defense and security forces have been playing their role,” Max Tonela, Mozambique’s energy and natural resources minister, told reporters during the June 19 site visit. “We all as Mozambicans must fight against this evil that comes from external attacks.”About 1,300 people have died in the violence, with a further 220,000 displaced since the first attack three years ago, which also took place at Mocimboa da Praia.For the second time, IS referred directly to the projects in a weekly newsletter this month. The group said that it would be “delusional” to think that the government could protect the investments, and warned other countries against getting involved.The marginalization of young men in a region that’s predominantly Muslim and 1,900 kilometers away from the capital, Maputo, has helped lead to radicalization that’s fueled the insurgency, according to researchers including Saide Habibe at the Maputo-based Institute of Social and Economic Studies who have studied the origins of the fighters.Total’s project will hire 14,000 people at peak construction, of which at least 5,000 will be Mozambican and many from the region, Bescond said at the briefing, wearing a surgical mask, as all visitors to the site must do to prevent another outbreak of the coronavirus.The financial rewards are worth the cost to the government of the soldiers patrolling the vast compound and snipers on its perimeter fence -- Total’s estimate is $50 billion in direct and indirect revenue over 25 years for the $15 billion economy.(Updates with details of attack in eighth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • U.S. Utility Giant Kills Pipeline, Ditches Gas in Berkshire Deal
    Bloomberg

    U.S. Utility Giant Kills Pipeline, Ditches Gas in Berkshire Deal

    (Bloomberg) -- One of the largest utilities in America is starting to turn its back on natural gas.Dominion Energy said Sunday that it’s selling substantially all of its natural gas pipeline and storage assets to Berkshire Hathaway Inc. for $4 billion, along with Berkshire’s assumption of $5.7 billion in debt. In a separate statement, the Richmond, Virginia-based company said it also decided with partner Duke Energy Corp. to kill the controversial Atlantic Coast gas pipeline along the U.S. East Coast, citing ongoing delays and “increasing cost uncertainty.”“We offer an industry-leading clean-energy profile,” Dominion Energy Chief Executive Officer Thomas F. Farrell said in a statement, citing the company’s goal of reaching net-zero emissions by 2050 and carbon-free electricity generation.Atlantic Coast is the latest gas pipeline to be scrapped by developers after years of delays and mounting costs. Williams Cos. earlier this year pulled the plug on the Constitution natural gas pipeline that would run from Appalachia to New York. Gas projects across America are facing intensifying opposition as local governments and environmentalists push for a transition away from fossil fuels.Dominion isn’t giving up on gas altogether. The company is retaining interest in its Cove Point liquefied natural gas export terminal in Maryland and will continue to invest in renewable natural gas.Berkshire is amassing more than 7,700 miles (12,400 kilometers) of natural gas storage and transmission pipelines and about 900 billion cubic feet of gas storage in the deal with Dominion. Warren Buffett’s conglomerate will also acquire 25% of Cove Point.With this transaction, Buffett has ended his period of relative silence on the acquisition front since the pandemic. The Dominion deal is set to be Berkshire’s largest acquisition ranked by enterprise value since its purchase of Precision Castparts Corp. in 2016. It will expand the company’s already sprawling empire of energy operations, which currently has operations in states including Nevada and Iowa.Dominion said it will use $3 billion of the proceeds to buy back shares. The company cut its projected 2021 dividend payment to around $2.50 a share, reflecting the assets being divested and a new payout ratio that aligns it better with industry peers.The transaction is expected to close during the fourth quarter. It will require the approval of federal agencies including the U.S. Department of Energy.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Do Hedge Funds Love RPC, Inc. (RES)?
    Insider Monkey

    Do Hedge Funds Love RPC, Inc. (RES)?

    At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. […]

  • Is Iteris Inc (ITI) Going to Burn These Hedge Funds?
    Insider Monkey

    Is Iteris Inc (ITI) Going to Burn These Hedge Funds?

    Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]

  • Should You Avoid The Bank of Nova Scotia (BNS)?
    Insider Monkey

    Should You Avoid The Bank of Nova Scotia (BNS)?

    We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

  • Do Hedge Funds Love Merit Medical Systems, Inc. (MMSI)?
    Insider Monkey

    Do Hedge Funds Love Merit Medical Systems, Inc. (MMSI)?

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Do Hedge Funds Love Ecopetrol S.A. (EC)?
    Insider Monkey

    Do Hedge Funds Love Ecopetrol S.A. (EC)?

    We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

  • Is BeiGene, Ltd. (BGNE) A Good Stock To Buy?
    Insider Monkey

    Is BeiGene, Ltd. (BGNE) A Good Stock To Buy?

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Hedge Funds Are Dumping ArcBest Corp (ARCB)
    Insider Monkey

    Hedge Funds Are Dumping ArcBest Corp (ARCB)

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Hedge Funds Are Selling Cna Financial Corporation (CNA)
    Insider Monkey

    Hedge Funds Are Selling Cna Financial Corporation (CNA)

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Do Hedge Funds Love CEVA, Inc. (CEVA)?
    Insider Monkey

    Do Hedge Funds Love CEVA, Inc. (CEVA)?

    How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]

  • Is Vedanta Ltd (VEDL) A Good Stock To Buy?
    Insider Monkey

    Is Vedanta Ltd (VEDL) A Good Stock To Buy?

    We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

  • France won't ban Huawei, but encouraging 5G telcos to avoid it: report
    Reuters

    France won't ban Huawei, but encouraging 5G telcos to avoid it: report

    The head of the French cybersecurity agency ANSSI said there would not be a total ban on using equipment from Huawei in the rollout of the French 5G telecoms network, but that it was pushing French telcos to avoid switching to the Chinese company. "What I can say is that there won't be a total ban," Guillaume Poupard told Les Echos newspaper in an interview. "(But) for operators that are not currently using Huawei, we are inciting them not to go for it."

  • Time to Get Picky as Emerging-Market Traders Question Rally
    Bloomberg

    Time to Get Picky as Emerging-Market Traders Question Rally

    (Bloomberg) -- Emerging-market investors are getting selective even after bonds, stocks and currencies kicked off the second half of the year on a high note.Money managers are questioning whether the developing world’s economic troubles will be short-lived as massive central-bank stimulus bolsters demand for risky assets. Emerging-market dollar bonds posted their longest weekly winning streak since February in the five days through Friday, while stocks and currencies had their best performance in a month.Inflation data in at least 10 developing economies, including Russia and Mexico, will provide clues on how much more room there is for policy makers to reduce interest rates, with many already at record lows. Malaysia’s central bank will likely cut borrowing costs this week, while Peru and Israel will probably remain on hold.“We are mainly focused on tracking mobility data to gather how different the pace of recovery is from country to country as we believe this will influence the level of attractiveness of the individual currencies,” said Anders Faergemann, a London-based portfolio manager at PineBridge, which manages about $96 billion. “We expect some central banks will continue to cut interest rates, but the bulk of rate cuts are behind us.”The majority of developing-nation central banks will maintain “an exceptionally easy monetary policy” for some time, Goldman Sachs Group Inc. analysts, including Andrew Tilton and Kamakshya Trivedi, wrote in a report. While growth will bounce back relatively sharply toward the end of this year and into 2021 as developing economies emerge from lockdowns, the crisis will leave a lasting effect on the level of their gross domestic product, they said.While BNP Paribas Asset Management continues to favor emerging-market credit and is increasingly positive on currencies, it isn’t as optimistic on local rates.“The shape of the recovery could be problematic as markets are increasingly pricing in a V-shaped recovery, with still accommodative policies,” said Jean-Charles Sambor, the London-based head of emerging-market debt at the firm, which oversees the equivalent of about $460 billion. Emerging-market “gains will not be as strong as in the second quarter.”Here’s what investors will be watching this week:Rate DecisionsBank Negara Malaysia will probably cut its overnight policy rate by 25 basis points on Tuesday, according to economists’ median estimateThe nation’s benchmark 10-year government bond yield traded around 2.8% last week after briefly spiking above 3% in mid-JuneOn Friday, Malaysia is expected to report a smaller decline in industrial production in May compared with April. It will also release manufacturing sales dataRead: Mahathir Risk Looms for Malaysian Bonds After Outlook CutPeruvian policy makers will probably hold interest rates steady on Thursday and reiterate plans to keep them low, according to Bloomberg Economics. The sol was one of the worst-performing currencies in emerging markets last weekAll of the economists surveyed by Bloomberg expect Israel to keep its benchmark rate at 0.1%The Bank of Israel wants a primarily fiscal response to the Covid-19 crisis, and will provide support including expanding a record bond-purchasing commitment if needed to keep borrowing costs low, Governor Amir Yaron said in JuneSri Lanka, Serbia and Mauritius will also decide on interest rates this weekCroatia VotesCroatia held a general election on Sunday in which the ruling Croatian Democratic Union, or HDZ, and the rival Social Democrats are in a dead heat. A hung parliament and potentially months of negotiations are expected after the voteThe yield on the nation’s EUR2 billion 11-year bond, which it sold in June, reached an all-time low on FridayEconomic DataContinued signs of recovery in China may help support risk assets as the largest developing economy is forecast to see continued credit growth in JuneThe nation will announce inflation data for June on Thursday that is forecast to show an uptick in consumer prices for the first time in four months. The pace of declines in factory prices is seen slowing due to a rebound in commodity prices, according to Bloomberg EconomicsChina will also release credit data between Friday and next Wednesday that’s expected to show continued growth amid supportive measures by the People’s Bank of China. PBOC Governor Yi Gang said in June that he expects 20 trillion yuan ($2.8 billion) of new yuan loans this yearBetter-than-expected numbers could help propel Chinese stocks higher, after the CSI 300 Index surged to a five-year high last weekIndia will announce May industrial production on Friday. While economists forecast another substantial slump, signs of a rebound in demand are emerging in June data. A falling jobless rate and improving factory outlook has helped the S&P BSE Sensex Index rally for the third consecutive week in the five days through FridayTaiwan will release foreign reserves on Monday followed by trade and inflation data on Tuesday. Exports are seen falling more than the previous month, narrowing the country’s trade balance. The pace in decline in consumer inflation is expected to easeThe benchmark Taiex Index is less than 1% away from erasing year-to-date losses after rallying for the past three weeksForeign reserves and inflation data for the Philippines are due Tuesday while the country will announce its trade balance on FridayInflation in Russia likely accelerated in June, while remaining well below the central bank’s 4% target“That may reflect one-time markups relating to the reopening of the economy, rather than the start of a trend,” Bloomberg Economics said in a report. “Further ahead, soft demand is likely to weigh on inflation, which creates space for a bit more monetary easing”While Brazilian inflation probably ticked up in June, Bloomberg Economics expects it to remain well below the target when figures are released on WednesdayRetail sales data for May due to be released on the same day will show the impact of the rapidly-spreading coronavirus on consumer behaviorMexico will post June inflation figures on Thursday and May industrial production data on Friday, which will also flag the effects of the virus and measures to contain itMinutes from the central bank’s June meeting, expected on Thursday, will provide context for the decision to cut the interest rate by 50 basis pointsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • This is the simple reason you can’t believe the P/E ratio for the Russell 2000 right now
    MarketWatch

    This is the simple reason you can’t believe the P/E ratio for the Russell 2000 right now

    If you want the real price-earnings ratio for a stock-market index, you need to include those companies that are losing money.

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