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☆ Stocks falter as economic worries nag, big rate hike lifts kiwi dollar
▼ + stars: | 2023-04-05 | by ( Dhara Ranasinghe | ) www.reuters.com time to read: +4 min

[1/2] A stock broker looks at his screens at the stock exchange in Frankfurt, Germany, March 16, 2023. REUTERS/Kai Pfaffenbach/File PhotoSummary Graphic: World FX ratesGraphic: Global asset performanceWorld stocks pull back from 7-week highsNZ dollar rallies after big rate hikeLONDON, April 5 (Reuters) - World stock markets stumbled on Wednesday as signs that the economic outlook is weakening spurred caution, while a bigger-than-expected interest-rate hike from New Zealand lifted the kiwi dollar. European stocks fell with the broad STOXX 600 index pulling away from Tuesday's one-month highs (.STOXX). U.S. equity futures dipped , and Japan's Nikkei (.N225) fell 1.6% in its biggest one-day percentage fall since mid-March. Weak U.S. economic data this week has exacerbated recession worries, taking the edge off recent stock market gains.

☆ Analysis: Banking woes, Fed keep U.S. market investors on edge
▼ + stars: | 2023-03-25 | by ( David Randall | ) www.reuters.com time to read: +5 min

But investors are guarded, wary that another bank run could erupt if people believe U.S. or European regulators won't protect depositors. Uncertainty over the Fed's intentions is amplifying investors’ hesitation in stocks and sparking huge swings in U.S. government bond prices. The Fed raised rates by 25 basis points on Wednesday but indicated it was on the verge of pausing further increases. Risk assets have been somewhat resilient despite the concerns in the banking sector, said Jason England, global bonds portfolio manager at Janus Henderson Investors. England expects longer-duration bond yields to start to rise from current levels, making short-term bonds and money market funds more attractive.

☆ Canada's Ritchie to pay special dividend to investors who back $7-bln IAA deal
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +1 min

March 7 (Reuters) - Canada's Ritchie Bros Auctioneers (RBA.TO) said on Tuesday it would pay a special dividend of $1.08 per share to its investors if they back its $7-billion deal for U.S. auto retailer IAA Inc (IAA.N). However, Ritchie's shareholders including Luxor Capital Group, Eminence Capital, Deep Field Asset Management and Janus Henderson Investors have opposed the deal. The latest move by Ritchie comes after proxy advisory firms Institutional Shareholder Services and Glass Lewis recommended that shareholders reject the deal, citing potential risks. read moreThe dividend will be paid subject to receipt of required shareholder approvals of the merger, Ritchie said adding that IAA shareholders will not be entitled to receive it. Reporting by Aishwarya Nair in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Stock pickers reckon it's time to move on from central banks
▼ + stars: | 2023-03-06 | by ( Naomi Rovnick | ) www.reuters.com time to read: +5 min

LONDON, March 6 (Reuters) - Stock market investors are calling time on the idea that the Federal Reserve, and other major central banks, have their back. The Nasdaq (.IXIC) is still up about 12% year-to-date and a sub-index of European tech stocks has gained 15% (.SX8P). A Reuters poll of 300 global asset managers last month showed 70% of those surveyed believed these so-called value stocks would outperform this year. Another sign investors are turning towards value shares is the reduced premium they are paying for growth stocks. "Central banks will keep rates high."

☆ Scrap-car deal battle is a heaping mess
▼ + stars: | 2023-02-23 | by ( Jonathan Guilford | ) www.reuters.com time to read: +4 min

Investors owning 10% of Ritchie’s shares, as well as IAA shareholder Discerene, want it nixed. They are about where they were before the deal was announced, but only after crashing 20% upon its unveiling. Worse, because Ritchie shareholders will only own part of the combined company, they don’t get the benefit of all of those savings, unlike in an all-cash deal. IAA shareholder Discerene and Ritchie Bros investors Luxor Capital, Janus Henderson, Vontobel, Deep Field Asset Management and Eminence Capital have publicly announced their opposition to the deal. Starboard Value has agreed to invest $500 million in Ritchie Bros in support of the deal, while IAA shareholder Ancora is also in favor.

☆ Analysis: Why China's reopening isn't inflationary
▼ + stars: | 2023-02-16 | by ( Rae Wee | ) www.reuters.com time to read: +6 min

However, economists see no challenge to global inflation, pointing instead to Chinese President Xi Jinping's new blueprint for self-sufficiency, broader prosperity and a socialist ideology as checks on big-ticket shopping. The slack in China's labour markets and Beijing's growth priorities will also take the edge off inflation, they say. "I don't think China's recovery or the reopening will cause any significant global inflation," said Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management. BNP's portfolio managers are positioning for China's rebound to boost regional tourism, but not export price rises for manufactured goods. "I'm very much of the view that (China's reopening) will be positive for the world in terms of either not being too inflationary, but more widely having deflation in some key new goods and services," Westpac senior economist Elliot Clarke said.

☆ Transportation company Via valued at $3.5 billion after latest fund-raise
▼ + stars: | 2023-02-13 | by ( ) www.reuters.com time to read: +1 min

Feb 13 (Reuters) - Via is valued at $3.5 billion, the transportation company said on Monday, after it raised fresh capital in a funding round led by 83North. Via develops public mobility systems by building a network of buses, shuttles, wheelchair-accessible vehicles and autonomous and electric vehicles in over 35 countries. It plans to use the capital to expand its products, improve its end-to-end digital infrastructure for public mobility and expand into new markets and verticals. Via had confidentially filed for an U.S. initial public offering in December 2021, a month after it raised $130 million and bagged a valuation of $3.3 billion. Reporting by Mehnaz Yasmin in Bengaluru; Editing by Krishna Chandra ELuri and Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ Investors see Hong Kong property stocks, funds as reopening trades
▼ + stars: | 2023-02-13 | by ( Georgina Lee | ) www.reuters.com time to read: +4 min

Investors see value in property companies regardless of whether their assets are in mainland China or Hong Kong, which reopened at about the same time. Rises in Hong Kong mortgage rates that began last year have compounded troubles for developers and mortgagees. Hong Kong interest rates tailgate those of the U.S. due to the local currency's peg to the dollar. "Hong Kong has a lot more to get us excited than China property companies where their financial data remains weak," said Tim Gibson, co-head of Global Property Equities at Janus Henderson Investors. "We remain positive on Hong Kong and many of its listed real asset companies, across infrastructure, utilities and property," said Fitzgerald.

☆ Corporate financial health to worsen, says Janus Henderson
▼ + stars: | 2023-02-06 | by ( Chiara Elisei | ) www.reuters.com time to read: +2 min

LONDON, Feb 6 (Reuters) - Corporate financial health will worsen across the globe this year, failing to gain respite from signs that inflation has peaked and hopes for an economic soft landing, asset manager Janus Henderson said in a report released on Monday. Its global credit risk monitor's indicators - debt loads, access to capital markets, cash flow and earnings - all flashed red in the fourth quarter of 2022, signalling caution to investors. All companies it tracks across global regions had flat or negative earnings forecast revisions for this year. Although an economic soft landing looks more likely, the asset manager remains cautious given the retreat in inflation is too late to prevent further deterioration in the credit cycle. "We are not out of the woods yet, although the decline in inflation seen in the last three months is a critical prerequisite to the elusive soft landing that investors cherish."

☆ New structured credit ETFs are hitting the market just as investors hunt for income
▼ + stars: | 2023-02-03 | by ( Jesse Pound | ) www.cnbc.com time to read: +5 min

BlackRock launched the AAA CLO ETF (CLOA) less than a month ago, and the product already has about $30 million in assets under management. Panagram Structured Asset Management is exploring riskier versions in the same ETF sector, launching the BBB-B CLO ETF (CLOZ) and surpassing the $20 million mark in less than two weeks. Fixed income funds boom The growth of these funds comes after a boom in fixed income ETFs in 2022, as rising interest rates and high inflation sent investors hunting for ways to generate additional yield. Invesco and VanEck also launched CLO ETFs last year, presenting additional investment options. However, there are diversification benefits to having floating rate ETFs for investors, especially in the U.S. where most fixed income products have a fixed rather than a floating rate, Kerschner said.

Foreign investors, many of them already underweight what they consider an overpriced stock market, are reducing exposure. "Only Adani Group is trading with these ridiculously high multiples, and that is the core of the problem." "At this point in time, I don’t think it’s a systemic risk," said Jimmy Lim, chief investment officer at Modular Asset Management in Singapore. "We don't think that there's going to be a default anytime soon, although I don't expect any kind of near-term resolution between Adani Group and Hindenburg," Chao said. Yet Chao expects the selloff to help bring Indian stock valuations to more "palatable levels" for investors.

☆ Investor reaction to Adani market rout after short-seller report
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: +4 min

The rout has sparked concern that the fallout could also affect, more broadly, confidence in India. GEORGE BOUBOURAS, HEAD OF RESEARCH AT K2 ASSET MANAGEMENT, MELBOURNE (UNDERWEIGHT ON INDIA)"The Adani effect works both ways given the market cap relative to index. "To attract more capital the Indian economy needs more FTAs (free-trade agreements) and more financial market reform - a long process." Given there has not been any significant change for now for the market valuation, the market remains overall expensive in our view." Adani is a known levered name in India, so I would think most participants should not associate the same issues for other Indian assets."

☆ Jeff Smith makes for a substitute Warren Buffett
▼ + stars: | 2023-01-30 | by ( Jonathan Guilford | ) www.reuters.com time to read: +4 min

With markets sagging and deals drawing opposition, such imprimaturs have a value - and at Ritchie Bros Auctioneers (RBA.TO), it’s the turn of Starboard Value’s Jeffrey Smith to play rescuer. Heavy equipment auctioneer Ritchie Bros ran into both problems in its $7 billion bid to buy salvage-car portal IAA (IAA.N). Announced in November, it quickly drew opposition from IAA shareholder Ancora and Ritchie investor Luxor Capital. Shareholder opposition is expected in market turmoil. As part of the deal, Starboard Value agreed to invest $500 million in Ritchie Bros, with fund boss Jeffrey Smith taking a seat on Ritchie’s board if the IAA deal succeeds.

☆ Wall St Week Ahead Recession fears pose challenge to energy shares after stellar year
▼ + stars: | 2023-01-28 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

The S&P 500 energy sector (.SPNY) is up 4.2% year-to-date, slightly lagging the rise for the broader index (.SPX). Goldman Sachs, RBC Capital Markets and UBS Global Wealth Management are among the Wall Street firms recommending energy stocks. He said he is slightly overweight the energy sector, including shares of Chevron and Pioneer Natural Resources (PXD.N). But earnings are expected to decline 15% this year, the biggest drop among the 11 S&P 500 sectors. Energy companies executed $22 billion in share buybacks in the third quarter, just over 10% of all S&P 500 buybacks.

☆ Asian equities hit 9-month high as recession fears wane
▼ + stars: | 2023-01-27 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose as much as 0.55% to hit an almost nine-month high of 562.10, and was last at 559.39. The index, which fell nearly 20% last year, is up nearly 11% so far this month and is on course for its best-ever January performance. European stock futures indicated that stocks were set to rise, with the Eurostoxx 50 futures up 0.3%, German DAX futures 0.28% ahead and FTSE futures up 0.16%. Oil prices rose on expectations of a boost to demand from China's reopening and after the strong U.S. data. U.S. West Texas Intermediate crude rose 0.41% to $81.34 per barrel and Brent was at $87.83, also up 0.41% on the day.

☆ Asian equities hit 9-month high as recession fears ebb
▼ + stars: | 2023-01-27 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose as much as 0.55% to hit an almost nine-month high of 562.10. European stock futures indicated that stocks were set to rise, with the Eurostoxx 50 futures up 0.31%, German DAX futures 0.28% ahead and FTSE futures up 0.17%. The dollar index , which measures the U.S. currency against six other peers, rose 0.12%, with the euro down 0.11% to $1.0877. Oil prices rose on expectations of a boost to demand from China's reopening and after the strong U.S. data. U.S. West Texas Intermediate crude rose 0.33% to $81.28 per barrel and Brent was at $87.75, up 0.32% on the day.

☆ Wall Street Week Ahead Recession fears pose challenge to energy shares after stellar year
▼ + stars: | 2023-01-27 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

☆ US stocks jump as investors cheer upbeat GDP data and strong Tesla earnings
▼ + stars: | 2023-01-26 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

US stocks jumped Thursday as investors cheered strong GDP data and Tesla earnings. GDP grew 2.9% over the fourth quarter, above estimates of 2.8%. GDP grew 2.9% annualized over the fourth quarter, according to the Commerce Department, above the 2.8% estimated by economists. Tesla, meanwhile, reported a record revenue of $24.32 billion over the last quarter, above estimates of $24.16 billion. "Headline GDP was very strong beating consensus suggesting robust economic activity and if recession were to materialize a softer recession.

☆ Here's where to look for the next developments in the fight against Alzheimer's disease
▼ + stars: | 2023-01-17 | by ( Christina Cheddar Berk | ) www.cnbc.com time to read: +10 min

The Centers for Disease Control and Prevention estimates 5.8 million Americans were living with the disease in 2020 . BIIB 6M mountain Biogen's stock is trading well above its lows Leqembi treats Alzheimer's disease by targeting amyloid-beta plaques in the brain. Attention shifts to Eli Lilly Shares of other Alzheimer's drug developers have often mirrored Biogen's moves. Small drug developers Smaller Alzheimer's drug developers have also been boosted by research developments. Still in an early stage of its research, Prothena has traded as a proxy for developments in Alzheimer's treatment.

☆ Companies, Lenders Clash Over Loan Spreads in Switch From Libor
▼ + stars: | 2023-01-13 | by ( Mark Maurer | ) www.wsj.com time to read: +7 min

As part of the shift, companies typically propose changes to their loan agreements with lenders, adjusting for the price difference between SOFR and Libor. The adjustment of the credit spread adds basis points to the interest rate on a loan to make up for the fact that SOFR has traded lower than Libor. The difference between SOFR and Libor can be as much as 25 basis points for loans with maturities of five to seven years. There will likely be more disagreements over credit spread adjustments as companies stop using Libor prior to its end. “There’s no reason to burn bridges over a few basis points,” Mr. Kerschner said.

Property investment in November fell the fastest since the statistics bureau began compiling data in 2000, down 19.9% on year. "Although property sales and starts will likely be slightly weaker than in 2022, property will be much less of a drag on the economy than in 2022." Reuters GraphicsHOUSING DEMANDShares in embattled Chinese property developers have gained 86% since the trough in October, buoyed by a string of property easing measures and the COVID policy u-turn. "We may be close to see some bottoming out in housing demand …but I don't think we're quite there yet," he said. The latest China Beige Book private economic survey was more blunt: "But forget a return to days of old: it will take considerable policy support in 2023 just to pull property out of the gutter."

☆ This fund partially dodged market volatility by leaning on fixed income in 2022
▼ + stars: | 2023-01-02 | by ( Alex Harring | ) www.cnbc.com time to read: +5 min

But the Janus Henderson Investors' Balanced Fund has been able to shield itself from at least part of the year's volatility by reducing exposure to equities and leaning more on fixed income. Fixed income accounted for about 44%. "This year has been tricky, obviously, because there's been such a high correlation between fixed income and equity returns," he said. Within fixed income, Buckley said the fund has been more conservative by reducing exposure to corporate credit. Despite the challenges of 2022, Buckley is optimistic about 2023.

Dec 30 (Reuters) - Global hedge funds are set to register their worst returns in 14 years in 2022 after aggressive U.S. interest rate rises hit asset prices hard, however, their declines are overall smaller than the slump seen in equity and bond markets this year. Some hedge fund strategies that put money in commodities and currencies using macro-focused strategies and exploited price differences between related securities outperformed in 2022, handing decent gains to investors. According to investment data firm Preqin, hedge fund returns have fallen 6.5% this year, their biggest since a 13% decline in 2008. Strategy-wise, macro funds gained 8.2% through November this year, while equity-hedged and event-driven strategies lost 9.7% and 4.7%, respectively, according to HFR data. Reuters GraphicsAlongside the tumble in traditional assets from equities to bonds, net assets of global hedge funds fell 4.8% in the first three quarters of this year to $4.3 trillion.

☆ Analysis: U.S. stock investors face recession fears as they bid good riddance to 2022
▼ + stars: | 2022-12-23 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

"The issue is how much has the market already discounted a recession, and that’s where it gets a little bit thornier." Concerns that the Fed will maintain its hawkish stance helped drive the S&P 500 down 1.45% on Thursday. The S&P 500 marked a 2022 closing low of 3,577.03 in October, just over 6% below its current level. Yet earnings fall by an average annual rate of 24% during recessions, according to Clissold, leaving plenty of downside for profits if a slowdown hits. Bear markets on average have bottomed four months before the end of a recession, according to Clissold, of Ned Davis.

☆ Yen holds on to gains as traders digest BOJ surprise policy tweak
▼ + stars: | 2022-12-21 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

The currency market is still digesting the BOJ's policy tweak, said Carol Kong, a currency strategist at the Commonwealth Bank of Australia. The BOJ decision comes as investors fret about a slowing world economy, sky-high inflation and other central banks' moves to lift interest rates. BOJ Governor Haruhiko Kuroda, who will step down in April, stressed the adjustment was not a prelude to a bigger tweak to the yield curve control policy and an eventual exit from ultra-easy monetary policy. The next policy decision the BOJ takes will likely be a major one, such as changing long-/short-term policy rate targets or terminating yield curve control altogether, according to Goldman Sachs analysts. The Antipodean currencies were wobbly after suffering big losses against the yen as rising Japanese yields threatened to kill flows into usually crowded carry trades.

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