U.S. Small Business Job and Wage Growth Remain Steady
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The Paychex Small Business Employment Watch reported that the Small Business Jobs Index grew 0.18 percentage points in March to 100.85, the first increase this year. However, it remained below pre-pandemic levels. Hourly earnings growth for workers at U.S. companies with fewer than 50 employees continued to decelerate, ending March at 3.27% growth year-over-year. The Midwest overtook the South as the top-ranked region for small business job growth, with Indiana leading all states with a jobs index of 102.88. All regions and every industry except Manufacturing showed positive job growth in March.
#SmallBusiness #JobGrowth #WageGrowth #Paychex #Employment #Economy
Sterling finds some stability above seven-week lows vs dollar
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The pound held steady against the dollar and the euro on Wednesday, rebounding from seven-week lows against the U.S. currency. The British currency's moves against the dollar have been comparatively more dramatic, dropping to $1.254 on Monday, the lowest since mid-February. Markets are currently pricing a 62% chance of a June Fed rate cut and roughly a similar chance of a cut by the Bank of England. U.S. jobs data, due Friday, will provide the latest information to shape expectations for the U.S. rate outlook.
Japan's Lost Decades: Are We on the Same Path?
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In 1989, Japan experienced a massive economic and financial bubble, with real estate in Tokyo selling for as much as $139,000 per square foot. The bubble burst in the early 1990s, leading to Japan's lost decades of economic stagnation and deflation. The country's GDP has shrunk since 1995, and prices have been flat with bouts of deflation. Japan's situation then and the current situation in the US are not directly comparable, but there are similarities in terms of extreme leverage and irrational exuberance. Japan's experience offers lessons on the consequences of excessive debt and the challenges of economic recovery. The country's declining and aging population, high unemployment rates, and stagnant wages have further contributed to its economic woes. The Bank of Japan has implemented policies to support the economy and banks, including near-zero interest rates and extensive asset purchases. However, Japan's struggle to regain economic and monetary policy normalcy highlights the long-lasting impact of the bubble. The article suggests that it's not too late for the US to manage its finances better and avoid a similar fate, but it requires taking steps to address the increasing dependence on debt and irrational exuberance in financial markets.
#Japan #EconomicBubble #Debt #Deflation #BankOfJapan #EconomicRecovery
https://uk.investing.com/analysis/japans-lost-decades-are-we-on-the-same-path-200604238
Tesla deliveries, Taiwan earthquake, Intel loss - what's moving markets
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Tesla reported weak first-quarter vehicle production and deliveries, with an 8.5% decline from the year-ago quarter and a 20% decline from the previous quarter. This is the first year-over-year decline since Q2 2020. Tesla stock fell around 5% on Monday. Taiwan Semiconductor Manufacturing (TSMC) evacuated some factory areas after a 7.5 magnitude earthquake hit Taiwan, potentially causing production delays. TSMC supplies major companies like Apple, Nvidia, and Qualcomm with semiconductors. Intel disclosed deepening operating losses for its semiconductor manufacturing business, with $7 billion in operating losses for 2023 on sales of $18.9 billion. Intel stock fell over 4% premarket. Oil prices steadied near five-month highs as traders digested signs of shrinking U.S. inventories and potential supply disruptions.
#Tesla #Tsmc #Intel #StockMarket #OilPrices
Exclusive-Microsoft to separate Teams and Office globally amid antitrust scrutiny
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Microsoft will sell its chat and video app Teams separately from its Office product globally, six months after unbundling the two products in Europe to avoid an EU antitrust fine. The European Commission has been investigating Microsoft's tying of Office and Teams since a 2020 complaint by Salesforce-owned competing workspace messaging app Slack. Microsoft's unbundling may not be enough to stave off EU antitrust charges, which could result in a fine of up to 10% of its global annual turnover. Starting April 1, customers can choose to continue with their current licensing deal, renew, update, or switch to new offers.
#Microsoft #Teams #Office #Antitrust #Eu #EuropeanCommission #Slack
Stocks Week Ahead: Rate Cut Hopes Hang in Balance Amid Key Data, Hawkish Fed
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The article discusses the upcoming week in the stock market, focusing on the balance between rate cut hopes and key economic data. Federal Reserve Chairman Jerome Powell will be speaking about the economic outlook and conducting a Q&A session at Stanford University. Economic data to be released includes the jobs report, retail sales report, and manufacturing data. The article suggests that robust economic data and hawkish Fed speak may reduce expectations for rate cuts in 2024. The article also mentions the Fed's Bank Term Funding Program (BTFP) and its recent decrease in size. The author speculates that the draining of the BTFP and quantitative tightening (QT) may lead to a shift in liquidity flow and potentially a decline in the NASDAQ 100. The article concludes by discussing the potential impact on reserve balances and the possibility of hitting the lower bound of what the Fed considers ample reserves. Overall, the article provides an analysis of the upcoming week in the stock market and the factors that may influence investor sentiment.
#StockMarket #RateCuts #EconomicData #FederalReserve #JeromePowell
1 Stock to Buy, 1 Stock to Sell This Week: Fortinet, Tesla
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Fortinet is a buy as its annual 'Accelerate 2024' event kicks off. Tesla is a sell with weak Q1 deliveries expected.
#StockMarket #Fortinet #Tesla
https://uk.investing.com/analysis/1-stock-to-buy-1-stock-to-sell-this-week-fortinet-tesla-200604020
5 big analyst AI moves: Apple-Baidu collaboration 'driven by regulatory concerns'
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Citi analysts believe that Apple's partnership with Baidu on AI initiatives is primarily driven by regulatory concerns in China. Apple plans to integrate Baidu's ERNIE Bot as the local large language model provider for its forthcoming iOS18. Wedbush raised its price target for Microsoft to $500, citing optimism about Microsoft's AI capabilities and the financial prospects of Copilot. Bank of America increased its target price on Taiwan Semiconductor Manufacturing (TSMC) to NT$880 on expectations of stronger demand for advanced nodes driven by AI. Macquarie analysts noted a shakeout in the market for foundational AI models and highlighted Apple's independent advancements in local generative AI research.
#Ai #Apple #Baidu #RegulatoryConcerns #Microsoft #Copilot #TaiwanSemiconductorManufacturing #AdvancedNodes #FoundationalAiModels
Top 5 things to watch in markets in the week ahead
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The article highlights the top 5 things to watch in the markets in the upcoming week. The main highlight is the U.S. employment data on Friday, which will provide insight into the health of the economy. The U.S. economy is expected to have added jobs in March, slowing from the previous month. The article also mentions that the second quarter begins after a strong performance for stocks in Q1. The yen and yuan remain on intervention watch, and data from the Eurozone and China will be closely watched. The Eurozone is set to release flash inflation data for March, which will be important for the European Central Bank's decision on interest rates. Additionally, the article mentions that monetary authorities in Japan and China are on high alert as their currencies weaken. Overall, the article provides an overview of key events and factors that will impact the markets in the week ahead.
#Markets #EmploymentData #UsEconomy #Stocks #Inflation #InterestRates #Currencies
https://uk.investing.com/news/economy/top-5-things-to-watch-in-markets-in-the-week-ahead-3409147
Torrid shares hold as Jefferies raises target
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Jefferies has raised its price target for Torrid Holdings Inc (NYSE:CURV) to $4.80 from $4.00, while maintaining a Hold rating on the stock. Torrid's fourth-quarter earnings exceeded expectations, with revenue and adjusted EBITDA surpassing estimates. The company's gross margins expanded by 250 basis points year-over-year due to reduced product costs and a more disciplined approach to markdowns. Although Torrid's outlook for the first quarter and full fiscal year was slightly below market expectations, the fourth-quarter results were seen as a positive development. Jefferies views the fourth-quarter performance as a step in the right direction for Torrid.
#TorridHoldingsInc #Jefferies #StockMarket
Weight-loss drug deals to drive around 4% of Gerresheimer yearly growth, CEO says
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Gerresheimer CEO Dietmar Siemssen expects around 4% of the company's revenue growth per year to come from deals to supply makers of weight-loss and diabetes drugs with vials, cartridges, syringes, and autoinjectors. The company expects sales related to GLP-1 medicines to surpass 100 million euros this year and reach at least 350 million euros ($379 million) within the next three years. Analysts predict that Novo Nordisk's obesity drug Wegovy could bring in sales of about $8.6 billion this year and $12.86 billion in 2025, while Eli Lilly's Zepbound could generate sales of around $4 billion this year and $10.8 billion next year. The weight-loss drug market is expected to reach at least $100 billion by the end of the decade. Gerresheimer is already producing products for GLP-1 drugs in Germany and is ramping up a plant in Mexico for production. The company also manufactures pens for GLP-1 drugs in the Czech Republic, South America, and the U.S., and plans to produce them in China in the future. Gerresheimer recorded 1.99 billion euros ($2.15 billion) in sales last year and expects revenue growth of 5%-10% this year and 10%-15% in 2025.
#Gerresheimer #DietmarSiemssen #WeightlossDrugs #Glp1Drugs #Wegovy #Zepbound #ObesityDrugs #RevenueGrowth #Sales #DrugMarket
Bookmaker 888 to sell some US assets to Hard Rock Digital
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British betting and gaming firm 888 Holdings plans to sell some assets in its U.S. consumer-facing operations to Hard Rock Digital and expects to exit that business by the fourth quarter of 2024.
Insurer Lloyd's of London swings to $13.5 billion profit in 2023
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Lloyd's of London reported a pre-tax profit of £10.7 billion ($13.51 billion) in 2023, a significant turnaround from the £800 million loss suffered in 2022. The commercial insurance market attributed the profit to strong underwriting and investment performance. The underwriting profit more than doubled to £5.9 billion, while investments returned £5.3 billion, aided by higher interest rates. Chief Executive John Neal expressed the intention to continue delivering consistent profitable performance through disciplined underwriting.
#Lloyd'sOfLondon #Insurance #Profit #Underwriting #Investment
GTA owner Take-Two to buy Gearbox Entertainment for $460 mln
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Take-Two Interactive Software Inc. has entered an agreement to acquire U.S. game developer Gearbox Entertainment for $460 million. The transaction will be funded entirely through newly-issued shares. Gearbox, known for its 'Borderlands' series, will operate as a studio within Take-Two and be led by founder and CEO Randy Pitchford. Take-Two and Gearbox are actively developing the next installment in the Borderlands series. The acquisition is expected to close in the first quarter of Take-Two's fiscal year 2025.
#TaketwoInteractiveSoftwareInc #GearboxEntertainment #Acquisition #VideoGames #Borderlands #RandyPitchford
Dollar firm after Fed comments; yen under close watch
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The U.S. dollar received a boost against major currency peers on Thursday, as a Federal Reserve official said he wasn't in a hurry to cut rates amid sticky inflation. The yen was holding its ground against the greenback after Japan's top monetary officials suggested they were ready to intervene. Federal Reserve Governor Christopher Waller said recent disappointing inflation data affirms the case for the U.S. central bank holding off on cutting its short-term interest rate target. Market expectations for the first rate cut to occur at the Fed's June meeting have eased somewhat. Traders await key U.S. core inflation figures due on Friday. The yen gained a little after Japanese authorities held a meeting on Wednesday on the currency's weakness. A summary of opinions at the Bank of Japan's March meeting released on Thursday showed policymakers were divided on whether the economy was strong enough to handle an exit from ultra-easy monetary policy. The euro was down 0.11% at $1.0814, while the pound fell 0.17% to $1.2616. Bitcoin rose 1.14% to $69,648.86.
#Dollar #Yen #FederalReserve #Inflation
https://uk.investing.com/news/economy/dollar-firm-after-fed-comments-yen-under-close-watch-3405678
Cathie Wood's ARK ETF adjusts holdings with Twist and UiPath stock trades
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Cathie Wood's ARK ETFs made notable moves on Wednesday, March 27th, 2024. The largest buy was in TWIST BIOSCIENCE CORP, where ARK purchased 33,994 shares. The largest sell was in UIPATH INC, with ARKQ ETF offloading 71,688 shares. ARK also bought shares in 10X GENOMICS INC, KRATOS DEFENSE & SECURITY, and PERSONALIS INC. The smaller buys included shares of ROBLOX CORP and PACIFIC BIOSCIENCES OF CALIF. These trades indicate ARK's interest in the biotech, genomics, defense, and emerging technology sectors. Investors will analyze these trades for insights into ARK's market outlook and strategic positioning.
#CathieWood #ArkEtfs #TwistBioscience #Uipath #StockTrades
Atento call centers may have violated labor rights, Mexico says
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Spanish company Atento's call centers, which serve clients of bank BBVA, may have violated employees' labor rights, according to Mexican authorities. An investigation under the US-Mexico-Canada trade pact found evidence of actions by Atento that could have constituted a violation of labor rights. Atento has rehired several employees, paid out severance to others who were fired, and allowed labor rights workshops to be held. Atento has not yet provided a comment on the matter.
U.S. shares higher at close of trade; Dow Jones Industrial Average up 1.22%
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U.S. equities were higher at the close on Wednesday, with the Dow Jones Industrial Average rising 1.22%. The top gainers on the Dow Jones Industrial Average were Merck & Company Inc, Intel Corporation, and Goldman Sachs Group Inc. The top performers on the S&P 500 were Enphase Energy Inc, First Solar Inc, and Cintas Corporation. The worst performers on the S&P 500 were Arista Networks, ServiceNow Inc, and Netflix Inc. Advancing stocks outnumbered falling ones by 2341 to 544 on the New York Stock Exchange. The CBOE Volatility Index was down 3.47% to a new 1-month low. In commodities trading, Gold Futures rose 0.74% and Crude oil rose 0.07%. The US Dollar Index Futures was up 0.02%.
#UsEquities #DowJonesIndustrialAverage #StockMarket
US North Korea sanctions target individuals, Russia, China and UAE-based firms
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The United States has announced sanctions on six individuals and two entities based in Russia, China, and the United Arab Emirates for channeling funds to North Korea's weapons programs. The individuals named are Yu Pu Ung, Ri Tong Hyok, Han Chol Man, O In Chun, Jong Song Ho, and Jon Yon Gun. The sanctioned entities are Alis LLC based in Vladivostok, Russia, and UAE-based Pioneer Bencont Star Real Estate. The Treasury Department stated that both firms are subordinate to Chinyong Information Technology Cooperation Co, an entity associated with North Korea's armed forces. The announcement comes as the United States and South Korea launch a new task force to prevent North Korea from procuring illicit oil.
HSBC starts Spotify at buy, cites significant opportunities
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HSBC has initiated coverage of Spotify with a Buy rating and a $310 price target. The bank sees significant opportunities for Spotify beyond music, citing its active user base of 602 million. HSBC believes that Spotify's cross-selling strategy from music to podcasts and audiobooks is built on firm ground and that the company has the potential to capture a $170 billion market opportunity by 2030. The bank also highlights Spotify's potential in other revenue streams such as merchandising and ticket sales. HSBC expects Spotify to achieve operating profitability in 2024.