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European markets start week higher; German exports dip
  + stars: | 2023-09-04 | by ( Holly Ellyatt | ) www.cnbc.com   time to read: 1 min
European markets kicked the week off on a positive note, buoyed by overnight trade in Asia-Pacific . European stock markets closed mixed on Friday after a key U.S. jobs report showed higher-than-expected new nonfarm payrolls, along with a rise in unemployment. On Monday, German trade data showed a 0.9% month-on-month fall in exports in July, while imports rose by 1.4%. Investors will be keeping an eye on a speech by Christine Lagarde, the president of the European Central Bank. Lagarde will be speaking at the Distinguished Speakers Seminar organised by the European Economics & Financial Centre.
Persons: Christine Lagarde Organizations: Reuters, European Central Bank, European Economics & Financial Locations: Asia, Pacific, U.S
The International Longshore and Warehouse Union of Canada (ILWU) and the British Columbia Maritime Employers Association (BCMEA) late Sunday announced a tentative labor agreement. Canadian Labor Minister Seamus O'Regan commented Monday morning on the announcement of another tentative deal. This latest tentative deal does not mean the uncertainty is over. The first tentative labor deal was rejected by the union body in a two-day vote last week. A 14-day strike has led to more than 16 canceled sailings to the Canadian ports, according to maritime intelligence company, eeSea.
Persons: Rob Ashton, Ashton, Seamus O'Regan, Berkshire Hathaway, John Brooks, Brooks Organizations: Warehouse Union of Canada, British Columbia Maritime Employers Association, Sunday, Canada Industrial Relations, ILWU, Canadian Labor, Canadian, Canadian Pacific Kansas City, Canadian National Railway, U.S, BNSF, Union Pacific, Norfolk Southern, CSX, Pacific Kansas City Locations: Burrard, North Vancouver, British, ILWU Canada, Canadian Pacific, U.S, Berkshire, East, Pacific Kansas
Nvidia , a dominant player in the artificial intelligence computing market, may face increasing competition from custom chip designers in the near future, according to Morgan Stanley. "We therefore expect to see increasingly energy-efficient and low-cost AI custom chip designs ahead, matching or even outpacing the growth of NVIDIA's and AMD's general purpose GPUs." Morgan Stanley is "overweight" on the five stocks, and increased their price targets in the June 11 note. As one of the few pure-play leading-edge design service houses, we believe Alchip (along with GUC) is a key enabler of future custom A.I. Global Unichip The chip designer has been awarded a contract from Microsoft to work on its new 5nm custom AI chip, which could be deployed across the U.S. company's cloud computing products.
Persons: Morgan Stanley, ChatGPT, Charlie Chan, Yuan, TSMC, Alchip Technologies Morgan Stanley Organizations: Nvidia, Intel, AMD, Taiwan Semiconductor Manufacturing Company, Alchip Technologies, Global, Yuan Electronics, ASM, Microsoft, Hong, ASM Pacific Locations: Taiwan, Hong Kong, China
Surging energy stocks in 2022 hurt the performance of many of the largest funds, and political backlash has gained traction with several states moving to block state funds from being invested in ESG products. According to AllianceBernstein, there were $12.1 billion of outflows from ESG funds in North America during the first quarter, although that was due to large outflows from a handful of funds. "This was primarily driven by redemptions from a few large passive ESG funds (e.g., iShares ESG Aware MSCI USA ETF ) due to underlying investors rebalancing their factor exposure. Clearly the political backlash against ESG also weighed on sentiment and demand for ESG products in North America," AllianceBernstein's Zhihan Ma said in an early May note to clients. There were $2.7 billion of inflows into ESG funds in Western Europe during the first quarter, according to Bernstein.
Bill Ackman's Pershing Square Capital Management opened a new position in Alphabet totaling nearly $1.1 billion during the first quarter, according to securities filings released Monday. The hedge fund bought more than 10 million shares — about 2.2 million class A and 8.1 million class C — of the Google search engine parent as the company benefited from artificial intelligence tailwinds and investors deeming tech giants as defensive stalwarts. Alphabet shares have gained 32% year-to-date. Elsewhere, Ackman trimmed his positions in Lowe's Companies , Hilton Worldwide and Chipotle Mexican Grill . The hedge fund maintained its stake in Restaurant Brands International and made only a nominal change in Canadian Pacific .
Since the turn of the year, investment banks have become increasingly bullish on the world's second-largest economy, upgrading their outlook on its stocks. But Morgan Stanley is going even further: It's predicting that Chinese stocks will beat global markets this year. "This actually implies that the Chinese equity market will top global equity market performance for 2023. So, this is the time to get back into China," Wang said. Stock picks Wang said the "number one trade" she would recommend to investors is to buy "large-cap, highly liquid" Chinese internet names.
Campbell said circumstances for the Pacific islands countries were "much more dire" than in the past. We're going to seek to do that as we go forward, building on the existing institutions and engagements of the Pacific." The Blue Pacific event, on the sidelines of the U.N. General Assembly in New York, will come ahead of a Sept. 28-29 summit U.S. President Joe Biden plans to host with Pacific island leaders, which Campbell said reflected "a desire to demonstrate clearly our larger commitment to the Pacific going forward." U.S.-China competition for influence in the Pacific islands has intensified this year after China signed a security agreement with the Solomon Islands, prompting warnings of a militarization of the region. read morePacific island leaders said this month Washington should accept their priorities, making climate change - not superpower competition - the most urgent security task.
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