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The latest stock-market rally has further increased the dominance of the top-seven companies in the S&P 500. Illustration by Alexandra Citrin-Safadi/WSJAs in the eponymous 1960s Western, the so-called “Magnificent Seven” stocks keep on winning. The S&P 500 is in a bull market, fueled by soft inflation data in the U.S. and Europe and the widespread belief that interest rates will start coming down early next year. Yet the stock market has become so top-heavy that speaking of a “bull market” carries less meaning than before. Without Apple , Microsoft , Alphabet , Amazon.com , Nvidia , Tesla and Meta Platforms—the high-growth, technology-related companies that analysts have dubbed the “Magnificent Seven”—the S&P 500 would only be up 9% this year, rather than 19%.
Persons: Alexandra Citrin Organizations: Apple, Microsoft, Nvidia, Tesla Locations: U.S, Europe
Worrying About Pandemics Is So 2020. Should It Be?
  + stars: | 2023-12-04 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
The Covid-19 pandemic has widened differences between rich and developing countries. Photo: Johis Alarcon/Bloomberg NewsAmid all the concerns about inflation, interest rates and wars this year, at least investors haven’t needed to worry about pandemics. Exhibit one: The President’s Emergency Plan for AIDS Relief, or PEPFAR, is on shaky ground. This U.S. initiative, created by George W. Bush in 2003, claims to have saved the lives of about 25 million people around the world. This year, though, opposition led by Rep. Chris Smith—who claims PEPFAR has been hijacked to promote abortion—has foiled the effort.
Persons: Johis Alarcon, haven’t, George W, Bush, Chris Smith —, PEPFAR, Organizations: Bloomberg, AIDS Relief, Rep Locations: U.S
The World’s Largest Buyer of U.S. Debt Isn’t Going Away
  + stars: | 2023-11-27 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
Japan is the world’s top holder of U.S. government debt. Photo: kimimasa mayama/ShutterstockCould the largest foreign buyer of American debt suddenly stop buying? Here is a comforting thought: This problem is probably already behind us. At a time when government issuance is massively expanding and firms face a 2025 refinancing cliff, overseas investors have gone from holding 43% of U.S. debt a decade ago to holding just 30%. Adding to the worries, the Bank of Japan might start raising interest rates next year, giving some Japanese owners a reason to repatriate their money.
Persons: kimimasa Organizations: Bank of Japan Locations: Japan
Why Stamping Out Crypto Bros Could Help Bitcoin
  + stars: | 2023-11-24 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
Changpeng Zhao, founder and CEO of Binance, has pleaded guilty to money-laundering violations. PHOTO: REUTERS/Benoit TessierSuch is the wackiness of the crypto world that a regulatory crackdown might actually revive investor optimism. Earlier this week, Binance Chief Executive Changpeng Zhao pleaded guilty to money-laundering violations and agreed to pay a criminal fine of $50 million. Then, his company will pay $4.3 billion to, among other things, settle civil allegations related to sanctions evasion.
Persons: Changpeng Zhao, Benoit Tessier Organizations: Binance
Javier Milei wants to adopt the U.S. dollar as Argentina’s national currency. Photo: Luciano GonzALez Torres/Xinhua/Zuma PressArgentina’s anarcho-capitalist president-elect is right that the country desperately needs dollars. But his economic plan for getting them may be the wrong one. Javier Milei ’s victory over Economy Minister Sergio Massa in Sunday’s presidential election showed how eager Argentines are to embrace change. Milei, an outsider who became popular on YouTube and TikTok, has promised to “chain saw” public spending, eschew China-friendly overtures and, most eye-catchingly, “burn down” the central bank and adopt the U.S. dollar as the national currency.
Persons: Javier Milei, Luciano GonzALez Torres, Javier Milei ’, Sergio Massa Organizations: U.S, Xinhua, Zuma Press, Economy, YouTube Locations: Sunday’s, tatters, China
Is the Stage Set for a Year-End Rally?
  + stars: | 2023-11-16 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
Consumers saw inflation cool in October after gasoline prices fell and underlying price pressures eased. Photo: Brandon Bell/Getty ImagesStock investors are getting early Christmas presents: Third-quarter corporate earnings were strong and inflation keeps heading lower. With all the good news already priced in and bond yields offering stiff competition, though, there is less room for the usual seasonal rally. Investors are feeling optimistic following Tuesday’s lower-than-expected inflation data. The two indexes are up 17% and 7% respectively in 2023.
Persons: Brandon Bell Organizations: Getty Images Stock Locations: Europe
Private-equity firms such as Blackstone are increasingly expanding into private debt. Photo: Jose A. Alvarado Jr. for The Wall Street JournalWall Street’s doom-mongers spent years warning that private lenders would be the next bubble to burst when central banks tightened policy. Instead, the funds are becoming even more ubiquitous as companies scramble to refinance debt in a higher interest-rate environment. The Westport, Conn.-based company operates 450 veterinary clinics and hospitals across the U.S. and has been owned by private-equity giant KKR since 2018. It has been a successful acquisition, but the company is facing a wall of debt maturities that can only be refinanced at higher cost.
Persons: Blackstone, Jose A, Alvarado Jr, mongers Organizations: Wall, Care Centers, The, KKR, Blue Locations: The Westport, Conn
UBS’s takeover of Credit Suisse led to a surge in earnings in the second quarter, but third-quarter losses underscore that integrating its rival will be a long process. UBS ’s first loss in nearly six years shouldn’t make investors take their eyes off the road. While the Swiss bank said Tuesday that third-quarter net income was a negative $785 million—almost twice as large as the median analyst forecast—its shares rose about 3% in early trading. Investors are wise to look through the fog and see that this was another set of encouraging figures.
Persons: UBS ’ Organizations: Credit Suisse, UBS Locations: Swiss
The Big Problem With Government Debt Isn’t What You Think
  + stars: | 2023-11-06 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
Investors are worried that Western governments are issuing more bonds than investors can buy. Whether the system that transacts in those bonds can bear the load could be a much more urgent issue. Last week, the U.S. Treasury Department said it would issue longer-term debt. Ten-year and 30-year government-bond yields, which had recently touched 16-year highs, have since fallen sharply.
Organizations: U.S . Treasury Department
The Musk Versus Twitter of Trucking Mergers
  + stars: | 2023-11-01 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
Forward Air agreed to buy freight forwarder Omni Logistics. PAUL PAGE/THE WALL STREET JOURNALIn most children’s games, there are no takesies-backsies. A similar principle seems to apply when a company signs a pretty ironclad contract to buy another. Late on Tuesday, Dallas-based freight forwarder Omni Logistics said that it had filed a lawsuit against trucking company Forward Air asking for the Delaware Court of Chancery to enforce the merger agreement that both companies signed back in August. This follows a statement last week in which Forward said it might terminate the controversial acquisition, arguing that Omni—which happens to be one of its trusted suppliers—had failed to comply with merger obligations.
Persons: PAUL, Organizations: Forward, Omni Logistics, Forward Air, Delaware, Omni Locations: Dallas
A new generation of mathematical modelers might be able to help defuse a looming insurance crisis. Floods, electrical storms and wildfires, together with raw-material inflation, are pushing up premiums for so-called catastrophe insurance. Some Americans are moving away from riskier places such as Florida, while others are foregoing cover. Insurers such as Allstate , State Farm and Farmers Insurance, owned by Zurich Insurance Group , are withdrawing from disaster-prone areas.
Organizations: Allstate, State Farm, Farmers Insurance, Zurich Insurance Group Locations: Florida
Shares in BNP Paribas fell even though the French bank beat third-quarter earnings expectations. PHOTO: Nathan Laine/Bloomberg NewsEuropean investment banks don’t tend to fare well when compared with their more profitable U.S. peers. But the war in Ukraine makes some comparisons unfair. Investors have been disappointed with the third-quarter results published by top European banks so far, with the stocks collectively down more than 3% this week. This is despite the fact that most of the companies have actually beaten analysts’ profit forecasts by a decent margin.
Persons: Nathan Laine Organizations: BNP, Bloomberg News, Investors Locations: Ukraine
Manchester United Shareholders May Have Scored After All
  + stars: | 2023-10-18 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
British billionaire Jim Ratcliffe is the only remaining bidder for Manchester United soccer club. PHOTO: PETER BYRNE/ZUMA PRESSManchester United shareholders are acting like despondent soccer fans after video-refereeing technology disallows a goal. Yet they might still win the match. The British soccer club’s publicly traded Class A shares have lost roughly 10% of their value since the weekend, when it was widely reported that British billionaire Jim Ratcliffe is in talks to buy a 25% stake through his petrochemical company Ineos. The other bidder, Sheikh Jassim Bin Hamad al-Thani, chairman of Qatar Islamic Bank, dropped out.
Persons: Jim Ratcliffe, PETER BYRNE, ZUMA, disallows, club’s, Sheikh Jassim Bin Hamad Organizations: Manchester United soccer, ZUMA PRESS Manchester United, Qatar Islamic Bank Locations: Thani, Qatar
What Defense Stocks Say About a More Violent World
  + stars: | 2023-10-16 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/what-defense-stocks-say-about-a-more-violent-world-926b24f5
Persons: Dow Jones
Jon Sindreu — Columnist at The Wall Street Journal
  + stars: | 2023-10-11 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
Jon SindreuJon Sindreu is a Heard on the Street columnist based in London, where he covers European banks and financial services, as well as markets and macroeconomics. He has previously written comment about aviation for Heard and Street, and was a reporter at The Wall Street Journal's market desk during Brexit and the 2016 presidential election. Before, he covered U.K. macroeconomics and the Bank of England. Jon also reported on the 2017 independence referendum and terrorist attacks in his natal Catalonia, where he used to work as a financial reporter and radio host.
Persons: Jon Sindreu Jon Sindreu, Jon Organizations: Heard, Bank of England Locations: London, Catalonia
The Crypto Economy’s Big Hope Is Already in Crisis
  + stars: | 2023-10-10 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/tech/the-crypto-economys-big-hope-is-already-in-crisis-17b4c412
Persons: Dow Jones
The World’s Dollar Addiction Is Hard to Kick
  + stars: | 2023-10-04 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/currencies/the-worlds-dollar-addiction-is-hard-to-kick-f52a836
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/the-bond-regime-change-that-is-whacking-stocks-in-six-charts-8bae3ffb
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/currencies/twenty-five-years-after-ltcm-emerging-markets-keep-burning-investors-89444ed1
Persons: Dow Jones, 89444ed1
How a Trucking Company Ran Over Its Own Stock
  + stars: | 2023-09-06 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/how-a-trucking-company-ran-over-its-own-stock-d60c5cc5
Persons: Dow Jones
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/economy/central-banking/labor-is-a-terrible-guide-to-inflation-but-nobody-wants-to-admit-it-7e3d3e8f
Persons: Dow Jones
UBS Gets Everything It Wants From Credit Suisse
  + stars: | 2023-08-31 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/ubs-gets-everything-it-wants-from-credit-suisse-7a4f8328
Persons: Dow Jones Organizations: ubs, suisse, 7a4f8328
Digital Payments Can’t Serve Up a Free Lunch
  + stars: | 2023-08-27 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/digital-payments-cant-serve-up-a-free-lunch-c5f391a8
Persons: Dow Jones
Real Rates Aren’t Your Real Friends
  + stars: | 2023-08-24 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/real-rates-arent-your-real-friends-87d3c336
Persons: Dow Jones, 87d3c336
This Gen-Z Lemonade Might Sour
  + stars: | 2023-08-17 | by ( Jon Sindreu | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/investing/this-gen-z-lemonade-might-sour-47b12bd5
Persons: Dow Jones
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