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Though municipal bonds generally offer income that's free of federal income taxes – and state taxes if the investor resides in the issuing state – they also come with lower yields compared to other bonds. When it comes to muni bonds, the higher your tax bracket, the more valuable the tax-free income is. A tax-conscious approach to fixed income You don't have to bulk up on municipal bonds to get the best yield for your tax scenario. Municipal bonds are good contenders in taxable brokerage accounts, where investors can benefit from their tax-free income. Some fund families offer "tax-aware strategies" either in mutual funds or ETFs, which can include some exposure to municipal bonds, as well as equities.
Persons: Wells Fargo, aren't, Nisha Patel, That's, Collin Martin, Michael Carbone, it's, Beth Foos Organizations: Wells, Wells Fargo Investment Institute, Federal Reserve, SEC, Bond, Corporate Bond, York Life Investments, Schwab Center, Financial Research, Morningstar Locations: Wells Fargo, Chelmsford , Massachusetts
HPE CEO on HPE-Nvidia AI partnership
  + stars: | 2024-06-20 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHPE CEO on HPE-Nvidia AI partnershipAntonio Neri, HPE CEO, joins 'Money Movers' to discuss how an enterprise might want to jump on the AI train, if corporates will begin to tell Wall Street about more specific monetizable use cases for AI, and much more.
Persons: Antonio Neri, corporates Organizations: Nvidia
Watch CNBC's full interview with HPE CEO Antonio Neri
  + stars: | 2024-06-20 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with HPE CEO Antonio NeriAntonio Neri, HPE CEO, joins 'Money Movers' to discuss how an enterprise might want to jump on the AI train, if corporates will begin to tell Wall Street about more specific monetizable use cases for AI, and much more.
Persons: Antonio Neri Antonio Neri, corporates
Nvidia continued to rally after recently claiming the title as the world's most valuable company. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementUS stock averages rose on Thursday, with the S&P 500 and the Nasdaq on track for another record. These easier conditions have at least partly neutralized the effects of the Fed hikes, paving the way for a reacceleration in both economic growth and inflation." Sløk said that easier financial conditions should help continue to offset the effects of tighter Fed policy for at least the next three quarters.
Persons: , Jerome Powell, Torsten Sløk, Sløk Organizations: Nvidia, Service, Nasdaq, Traders, Microsoft, Federal Reserve Locations: Here's
The firm raised its year-end S&P 500 target to 6,000 and said the index could hit 7,000 by 2025. Evercore strategist and managing director Julian Emanuel increased his year-end S&P 500 price target to a new high on Wall Street at 6,000 in a note on Sunday. Emanuel forecasts S&P 500 EPS growth of 8% and 5% in 2024 and 2025, respectively. The S&P 500 trading at 6,000 would imply a 25x trailing 12-month price-to-earnings multiple based on Emanuel's EPS estimate of $238 per share. AdvertisementIf the high valuation multiples persist, the S&P 500 could rise 31% to 7,000 by the end of 2025.
Persons: , Julian Emanuel, Emanuel, it's, Tom Lee Organizations: ISI, Service
High interest rates have been a boon to Americans holding cash, but many on Wall Street are cautioning investors to start thinking ahead. People have been piling into cash vehicles like money market funds and certificates of deposit since the Federal Reserve started hiking interest rates. Interest rates appear to be staying higher for longer, with the Federal Reserve on Wednesday projecting only one rate cut this year. Agency MBS have a duration of about six years, per the Bloomberg US MBS Index as of June 3, Jones noted. Right now, the residential mortgage-backed securities sector looks attractive because of its relative value compared to investment-grade corporate bonds, he said.
Persons: Jones, Leslie Falconio, Fannie Mae, Freddie Mac, Ginnie Mae, Wells Fargo, Luis Alvarado, Alvarado, Falconio Organizations: Federal Reserve, Investment Company Institute, Schwab Center, Financial Research, Agency MBS, Bloomberg, MBS, UBS, Wells, Wells Fargo Investment Institute, Investors, corporates, UBS America's, AAA Locations: UBS Americas, Wells, Wells Fargo
Bank of America predicts large-cap value stocks will start to outperform growth stocks. AdvertisementThe most boring area of the stock market is poised for a "renaissance" of outperformance, according to Bank of America. AdvertisementA hard landingAnother scenario in which value stocks should outperform is if the economy experiences a hard landing. That would likely lead to a sharp sell-off in growth-oriented stocks and the relative outperformance of value stocks. A world of structurally higher rates and inflation should bolster value stocks," Bank of America said.
Persons: , Savita Subramanian, corporates, Banks, Ebrahim Poonawala, Consumer Staples, Staples, Subramanian Organizations: of America, Bank of America, Service, Equity, " Utilities, Energy, Banks, Consumer
"The company made a massive switch in its consumer mix," said Sandeep Rao, a senior researcher at Leverage Shares, an investment management company. As for competition, even if Nvidia's contenders appear weak, more entrants will grab market share. Beth Kindig, the CEO and lead tech analyst for the I/O Fund, estimates that AMD's market share could reach 20%. Nvidia and AMD have similar production costs since neither makes their GPUs but uses the same supplier, Taiwan Semiconductor (TSMC). "So AMD is a little bit behind in terms of performance," Rao said.
Persons: Sandeep Rao, corporates, Rao, Nvidia's, Blackwell, Rubin, AMD'sRadeon, Beth Kindig, Nvidia's Blackwell Organizations: Service, Apple, Microsoft, Business, Nvidia, Semiconductor, Nvidia Investors, AMD, Taiwan Semiconductor, Intel, Baidu Locations: China, India
There's a lot to like right now in the fixed income market, according to BlackRock's Rick Rieder. He finds European credit, both investment grade and BB-rated high yield, attractive in part because of the strong U.S. dollar. They have also added high quality CLOs and high-quality European securitized assets. "We're getting more yield than BB high yield. We're getting almost as much yield as full high yield — and our volatility is 60% of that market, just because we diversified," Rieder said.
Persons: BlackRock's Rick Rieder, Rieder, Bond, Fed Governor Waller, I've, He'd, Morningstar, We've, we're, BINC, We're, they'll Organizations: CNBC, SEC, Federal Reserve, Fed, AAA, BlackRock AAA, BlackRock AAA CLO, U.S, CLOs, MBS Locations: BlackRock, CLOs, European
Johannesburg, South Africa CNN —It was a phone call that changed everything. “We have some good news.”Mmakgabo Helen Sebidi had been waiting to hear those words for more than 30 years. Origins of an artistSebidi was born in 1943 near Hammanskraal, South Africa, north of Pretoria. One of artist Mmakgabo Helen Sebidi's early works, which often depict traditional, rural scenes of a time before European colonization came to the African continent. “We need those freedoms.”Mmakgabo Helen Sebidi’s exhibition is on display at the University of Johannesburg Art Gallery until May 17, 2024.
Persons: , Helen Sebidi, ” Sebidi, Sebidi, , John Koenakeefe Mohl, Mmakgabo Helen Sebidi “, Mark Read, Everard, “ Helen, Read, Mmakgabo Helen Sebidi's, Helen Sebidi “, , – Sebidi, Kim Berman, , Helen Sebidi's, Mmakgabo Helen Sebidi Sebedi, Gabriel Baard, ” Baard, ” Berman, Thabo Mbeki –, Jesper Osterberg, Gabriel Baard Baard, Everard Read, Helen Sebidi’s Organizations: South Africa CNN, South, CNN, Johannesburg Art Foundation, Everard Read, Galleries, Federated Union of Black Artists, Millary Colony, Arts, Nyköping Folk, School, University of Johannesburg, , Smithsonian, Folk High School, Swiss Air Freight, University of Johannesburg Art, Swedish Embassy Locations: Johannesburg, South Africa, Sweden, Hammanskraal, Pretoria, New York, Swedish, Nyköping, Black, , Stockholm, Sebidi
Balance sheets "look healthy," cash flow generation is "attractive," and dividends and buybacks are set to be resilient, Goldman Sachs says. But not all stocks offering buybacks and dividends are equal, Goldman said. "For example, year-to-date, high buyback yield stocks have outperformed low buyback stocks. In contrast, high dividend yield stocks underperformed low dividend yield stocks," it said. It highlighted its baskets of buyback stocks for a diversified strategy.
Persons: Goldman Sachs, Goldman, CNBC's Michael Bloom Locations: Europe
UBS doesn't see the Federal Reserve embarking on rate cuts until September — and that means now is the time to snap up tax-free municipal bonds. Bond yields and prices move inversely, so a decline in rates will come with price appreciation for the underlying issues. "Against that backdrop, we believe that yields on quality municipal bonds look attractive at current levels," wrote UBS Wealth Management senior municipal bond strategist Kathleen McNamara in a report last week. The kicker of tax-free income Muni bonds are generally backed by the full faith and credit of the issuer, which makes them less of a default risk compared with corporates. Large diversified municipal bond funds can be cheap, but state-focused funds tend to be a little more costly.
Persons: Kathleen McNamara, McNamara, FKTFX Organizations: UBS, Federal, UBS Wealth Management, Bond, SEC, Vanguard California, Franklin, Franklin California Tax, Income Fund, Muni Bond ETF, Vanguard New Locations: There's, New York , California, New Jersey, California, Franklin California
A general view of the BP logo and petrol station forecourt sign on January 22, 2024 in Southend, United Kingdom. British oil major BP on Thursday trimmed its executive team down to 10 members and announced William Lin as the new head of the firm's oil and low carbon energy business. BP said it was simplifying its organizational structure to help "grow the value" of the business. "These changes will help us do just that, reducing complexity within bp, allowing our team to focus on delivering our priorities and growing the value of bp," he added. The energy major said the financial reporting structure of the firm remains unchanged and that it will continue to have three businesses: production and operations, gas and low carbon energy and customers and products — enabled by trading and shipping.
Persons: William Lin, Lin, Isabel Dotzenrath, Emeka Emembolu, Ann Russell, Murray Auchincloss, BP's Organizations: United Kingdom ., IEC, London Locations: Southend, United Kingdom, Leigh
The analysis, conducted by Bain & Company, GenZero, Standard Chartered and Temasek, found that $6.3 billion of green investments flowed into the region, representing a 21% year-on-year increase. Last year, Malaysia attracted large-scale green financing of over $500 million for at least two data centers, according to the Monday report. watch nowThe move came after the Singaporean government unveiled a sustainability standard for data centers operating in tropical climates. Despite these efforts, Singapore's overall green investments fell in 2023 to $0.9 billion from $1.2 billion a year prior. Green investment towards power in the region fell by 14% year-over-year for the second year in a row.
Persons: Singapore —, Kimberly Tan, GenZero's Tan Organizations: Istock, Getty, Bain & Company, GenZero, Chartered, International Energy Agency, Singapore Locations: Asia, Temasek, Malaysia, Singapore
U.S. Federal Reserve Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, U.S., March 20, 2024. The U.S. economy could be headed for stormy waters in 2025 if the Federal Reserve does not take action soon on interest rates, State Street's head of investment strategy in EMEA said Tuesday. "The traditional transmission policy mechanism has broken, or doesn't work as well," Kassam told "Squawk Box Europe." As such, the impact of, for example, sustained higher interest rates may not be felt until further down the line when they come to refinance. "For now, consumers and corporates aren't feeling the pinch of higher interest rates," he added.
Persons: Jerome Powell, Altaf Kassam, Kassam Organizations: Federal, Committee, Federal Reserve, CNBC, Fed Locations: Washington , U.S, U.S
OpenAI has promised that ChatGPT Enterprise customers' data will not be used to train its models. Talking to potential customers from industries including finance, healthcare and energy, OpenAI executives highlighted a range of applications, such as call-center management and translation. Microsoft, the largest investor in OpenAI, offers access to OpenAI's technology through its Azure cloud and by selling Microsoft 365 Copilot, a productivity tool powered by OpenAI's models targeting enterprises. Some executives in the audience at the events asked why they should pay for ChatGPT Enterprise if they are already customers of Microsoft, attendees said. Lightcap told Bloomberg last week more than 600,000 people signed up to use ChatGPT Enterprise and Team, up from around 150,000 in January.
Persons: Altman, Brad Lightcap, Sam Altman, OpenAI, Lightcap, ChatGPT, Sora Organizations: ChatGPT Enterprise, OpenAI, Fortune, Microsoft, Reuters, ChatGPT, Bloomberg, Enterprise, Team, Fox, News Corp Locations: U.S, London, San Francisco , New York, OpenAI
JPMorgan scrapped its recession forecast for the first half of 2024 and now sees 55% odds of a soft landing. The bank sees a 30% chance that global expansion persists without major policy easing. AdvertisementJPMorgan has backed off from its recession forecast for the first half of 2024 and says it now sees a 55% chance of a "soft landing" for the global economy through late next year. Related storiesBut now, with upbeat data painting a rosier picture, the bank sees a 55% chance of a soft landing scenario extending through at least the end of next year. On the earnings side, corporates in developed markets surpassed expectations last year, with margins holding close to record highs, demonstrating surprisingly resilient profitability despite high policy rates.
Persons: , Bruce Kasman, Joseph Lupton, Kasman, Lupton, Jamie Dimon, Dimon Organizations: JPMorgan, Service
Market strategist Matt Orton sees promise in small-cap stocks this year, naming four under-the-radar companies he is bullish on right now. Year-to-date, the Russell 2000 , the benchmark for small-cap stocks, has been up nearly 5.2% despite having a tough start to 2024. Small-cap players in the U.S. stand out as "very, very attractive" right now, he said, naming Vertiv Holdings and CyberArk as two companies on his radar. The market strategist remains confident on the stock, noting that "just because it is up, doesn't mean you don't want to own it." CyberArk The market strategist also has his eye on the cybersecurity space.
Persons: Matt Orton, Orton, Raymond James, CNBC's, Russell Organizations: Raymond James Investment Management, Vertiv Holdings, Vertiv Holdings Vertiv Holdings Locations: 2H24, U.S
The Biden administration has encouraged American companies to move electronics and technology manufacturing operations out of China and into friendlier countries, particularly Vietnam and India in Asia-Pacific. Vietnam's head startIndia and Vietnam are attractive manufacturing alternatives for foreign investors and companies, due in part to low labor costs. Import taxes remain highOne hurdle for India's manufacturing hub ambitions is the country's 10% import duty for information and communication technologies. India's import taxes were intended to protect domestic manufacturers, but lowering those duties will be part of the government's efforts to attract foreign firms to manufacture goods within the country. For example, India in January lowered import taxes for certain metal and plastic parts used in manufacturing mobile phones from 15% to 10%.
Persons: Biden, Mukesh Aghi, Samir Kapadia, Narendra Modi's, Aghi, Nari Viswanathan, Viswanathan, Tim Cook, Narendra Modi, Andy Ho, Modi, Kapadia, Pankaj Mahindroo, VinaCapital's Ho, Ho Organizations: Hindustan Times, Getty, Republicans, U.S ., India Strategic Partnership, India Index, Vogel Group, U.S, White House, Washington, Financial Times, Apple, Indian, Google, Dixon Technologies, Samsung, Motorola, India Cellular and Electronics Association, CNBC, corporates Locations: Noida, India, Asia, China, Vietnam, The U.S, U.S, United States, Singapore
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSetting a carbon price is 'absolutely critical' in accelerating decarbonization, CEO saysFrederick Teo, CEO of GenZero, a subsidiary of Temasek, says "setting a carbon price allows decision-makers in corporates or in government to better allocate capital," among other things.
Persons: Frederick Teo Organizations: Temasek Locations: corporates
Overall, actively managed mutual funds and exchange-traded funds fell short of passive funds, with 47% of active strategies surviving and beating their index-following peers, according to Morningstar. However, actively managed funds outperformed in the bond category. About 53% of active bond managers survived and beat the passive average in 2023, up from 30% in 2022, the research firm said in a recent report . Intermediate core bond funds largely invest in investment-grade debt, spanning from government issues to corporates. Core bond funds have also held up in recessions, thanks to their diversification across fixed income and duration.
Persons: Morningstar, Paul Olmsted, Olmsted, Olmstead, It's Organizations: Morningstar, Vanguard, Bond Market, Aggregate Bond, Intermediate Bond Fund
Australian farmers rip out millions of vines amid wine glut
  + stars: | 2024-03-09 | by ( ) edition.cnn.com   time to read: +5 min
About two-thirds of Australia’s wine grapes are grown in irrigated inland areas such as Griffith, its landscape shaped by vine-growing techniques brought by Italian migrants arriving around the 1950s. That would destroy more than 20 million vines across 12,000 hectares (30,000 acres), Reuters calculations based on Wine Australia data show, or about 8% of Australia’s total area under vine. “If half the vines in Australia were ripped out, it still might not solve the oversupply,” said a wine maker in Western Australia. When China blocked imports during a political dispute in 2020, Australia lost its biggest wine export market by value. And unlike Europe, it offers farmers no financial aid to help them destroy vines and excess wine.
Persons: , , James Cremasco, Griffith, TWE.AX, Carlyle Group’s, Andrew Calabria, Cremasco, Jeremy Cass, Tim Mableson, Bill Calabria, Andrew’s, There’ll Organizations: CNN, Accolade, Wine, Riverina Winegrape Growers, Growers, KPMG Locations: Australia, China, Griffith, Calabria, Riverina, Wine Australia, Western Australia, Chile, France, United States, Bordeaux, Europe, Tasmania, Yarra, Victoria
Zehrid Osmani, a portfolio manager at Martin Currie, a Europe-based affiliate of Franklin Templeton, is one such investor. Osmani told CNBC that he sees "potential risk of froth" in the AI trade as a whole, but not for Nvidia. "Unlike the basket of AI [stocks] that has seen multiple expansion, Nvidia has actually seen multiple contraction. Nvidia's price-to-earnings ratio, using the projections for the next 12 months, is 32.4, according to FactSet. So there will be a critical element of needing to channel more spend toward AI for a corporate," Osmani said.
Persons: Zehrid, Martin Currie, Franklin Templeton, Osmani Organizations: Nvidia, CNBC, Microsoft Locations: Europe, Great Britain, OpenAI
As of Feb. 29 with 313 companies having reported, 50.2% posted a beat, according to a CNBC analysis of FactSet data. This was the smallest percentage of beats — thus the worst earnings season — since the first quarter of 2020 when the pandemic first hit European firms. Share buyback bonanzaSharon Bell, a senior European strategist at Goldman Sachs, told CNBC that she had noticed a new trend for European corporates during this earnings season. "What you have seen is a lot of companies announcing buybacks," she told CNBC's "Squawk Box Europe" Tuesday. "It is absolutely huge, you've never really seen this before in 20, 30 years, European companies pay dividends, they don't do buybacks," she said.
Persons: , Edward Stanford, Philippe Ferreira, Kepler Cheuvreux, Sharon Bell, Goldman Sachs, CNBC's, you've, Bell, Ferreira Organizations: CNBC, HSBC, L'Oreal, European Central Bank, Shell, Deutsche Bank, Novo Nordisk, UBS Locations: Triomphe, France, Europe, China, Ukraine, European
"The primary lesson is that seeking complete isolation of a large, complex and globally-integrated economy is costly and unattainable," Elina Ribakova wrote in the Financial Times on Tuesday. Russia's economy has managed to keep humming because Russian President Vladimir Putin has been preparing for sanctions since 2014. Failures in Russia, lessons for the futureEven so, the West can glean valuable lessons from its experience sanctioning an economy as large as Russia, said Ribakova. Advertisement"In the case of China, the US would need to look for vulnerabilities while remaining realistic about the limitations of sanctions," wrote Ribakova in FT.She added there must be steeper penalties for those who evade sanctions. "The experience with Russia is an invaluable opportunity to sharpen sanctions as a foreign policy tool," she wrote Ribakova.
Persons: , Elina Ribakova, Vladimir Putin, Ribakova Organizations: Service, Financial Times, Business, Monetary Fund, Peterson Institute for International Economics, International Affairs Program, Kyiv School of Economics, Russia Locations: Ukraine, Russia, Moscow, Beijing, China, Taiwan
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