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☆ Morgan Stanley sees a 10% fall in European stocks this summer — and reveals how to trade it
▼ + stars: | 2023-06-06 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Morgan Stanley expects a 10% slump in European stocks over the next quarter as several unfavorable conditions converge. The investment bank made the forecast partly based on a slowdown in economic momentum and tighter liquidity conditions in the fixed-income market. "We expect a 10% correction over the summer months as growth slows and liquidity deteriorates," said Morgan Stanley strategists led by Graham Secker in a note to clients on June 4. The investment bank said defensive stocks were better suited to navigate this anticipated downturn over cyclical stocks. In addition, Morgan Stanley expects a decline in earnings per share of 6% for 2023, up from a previously projected 10% decrease, and EPS growth of 6% for 2024.

Persons: Morgan Stanley, Graham Secker, — CNBC's Michael Bloom Locations: Europe, LYY5

☆ Ark Invest's flagship fund sold Nvidia before its big rally. Here's why
▼ + stars: | 2023-06-06 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

However, Ark Invest's flagship Ark Innovation ETF (ARKK) exited its position in Nvidia entirely in early January —before the chipmaker enjoyed a powerful rally that propelled it to a $1 trillion market capitalization. We saw this potential for deep learning and enjoyed a lot of that ride," said Frank Downing, a research director at Ark Invest. The growth of the industry and the urgent need for powerful AI hardware has led to an increase in the number of companies entering the market. Ark Invest hasn't been alone in trimming an Nvidia stake. However, despite exiting a portion of their Nvidia positions, both Ark Invest and Damodaran maintain a favorable outlook for the company.

Persons: Ark, —, We've, Frank Downing, Downing, CNBC's, we've, Aswath, University's Organizations: Tech, Nvidia, AI, Innovation, Ark Invest, ARK Autonomous Tech, Robotics, Google, Amazon, AWS, AMD, Intel, University's Stern School of Business, NYU's Stern School of Business, Ark, Damodaran Locations: New

☆ Ark Invest: These 2 A.I. stocks are being overlooked by the market
▼ + stars: | 2023-06-05 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Two firms specializing in artificial intelligence — UiPath and Twilio — are being underappreciated by investors, according to Frank Downing of Ark Investments. UiPath, a business process automation firm, is one of the companies that Downing views as overlooked. ARKW 1Y line He thinks this could mean fewer manual human interventions, substantially improving efficiency at UiPath for its customers. PATH 1Y line Twilio Twilio, a cloud communications platform founded in 2008, was also flagged by Downing as a potentially undervalued stock. Still, the director of research believes companies such as Twilio and UiPath are likely to capture the next wave of growth as AI is increasingly commoditized.

Persons: Frank Downing, Downing, OpenAI, ChatGPT . Downing, Siti Panigrahi, TWLO Organizations: Ark Investments, Mizuho, Microsoft, Google Locations: ChatGPT .

☆ Slump in global cashew demand pushes Ivory Coast industry to verge of collapse
▼ + stars: | 2023-06-05 | by ( Ange Aboa | ) www.reuters.com time to read: +3 min

Global demand for cashew nuts, eaten as snacks or used for cooking and desserts, has tumbled since the end of the coronavirus pandemic, driven by multiple factors, including consumer inflation and increased production. "No one wants to buy cashew, even if I ask for 150 CFA francs per kilogram ($0.24) instead of the farmgate price of 315 CFA francs. Dembele lost 20 million CFA francs ($33,000) during the 2022 season after buying nuts he could not resell to wholesale processors. Output rose from 400,000 tonnes in 2011 to 1 million tonnes in 2022, and is expected at the same level in 2023. In Bouake, the heart of the country's cashew processing industry, work has come to a near standstill as employers struggle to pay salaries.

Persons: Ange Aboa, Dembele, Ibrahim Coulibaly, Ivory Coast, Ganesh, Rajaraman, It's, Alessandra Prentice, Bate Felix, Ed Osmond Organizations: REUTERS, Ivory, Farmers, Global, CFA, Factories, Thomson Locations: Katiola, Ivory Coast, Korhogo, Bouake, Dakar

☆ In the battle for EV dominance in Europe, Bernstein picks 7 winners
▼ + stars: | 2023-06-02 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Chinese electric vehicle (EV) manufacturers are making a push into Europe and could take market share away from established U.S. and local brands, according to Bernstein. European brands have already seceded 20% of market share to Japanese and South Korean carmakers over the past two decades, according to IHS. Using what it described as conservative estimates, Bernstein predicted that Chinese automakers will hold less than 5% market share by 2030. In an accelerated scenario, where both Tesla and Chinese brands capture significant market share, incumbents could lose up to 20%," the bank's analysts wrote. Roeska noted that despite the fact that Chinese-owned European brands such as MG, Volvo, and Polestar currently account for 8% of the region's EV market, long-term dominance can only be sustainable through local production.

Persons: Bernstein, Tesla, Daniel Roeska, Roeska, Polestar, Aston Martin Organizations: IHS, Renault, EV, Volvo Car, Volvo, Benz Locations: Europe, Korean, U.S

☆ These 2 stocks have raised dividends above the inflation rate every year — for 40 years
▼ + stars: | 2023-06-01 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

Two U.S.-listed companies, Air Products & Chemicals , and Automatic Data Processing , are the only stocks worldwide to have raised dividends every year above the rate of inflation for the past four decades, according to a CNBC Pro analysis. In 2022, when the price levels rose by 8%, Air Products raised its dividend by 8.9%. Similarly, Automatic Data Processing, a payroll and human resources software company, has beaten the inflation rate each year for the past four decades. Air Products & Chemicals Air Products has benefited from the rise in industrial products in Europe — it reported a 6% rise in volumes and an 8% increase in prices across the group annually for the second quarter of this year. Automatic Data Processing New Jersey-headquartered Automatic Data Processing has paid out a more significant dividend per share than Air Products in 24 of the past 40 years.

Persons: Sebastian Bray, FactSet, Linde, Bray, Stifel, David Grossman Organizations: Air Products & Chemicals, CNBC, Air Products, Air Products & Chemicals Air Products, BASF, Neom, Berenberg Research, Air Liquide, Products Locations: Europe, Saudi Arabia, 24.8x, 23.4x, Jersey

☆ Xiaomi partners with Dixon Technologies to make mobile phones in India
▼ + stars: | 2023-05-31 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, May 31 (Reuters) - Contract manufacturer Dixon Technologies (India) Ltd (DIXO.NS) on Wednesday said it is partnering with Xiaomi Corp's (1810.HK) Indian arm to make and export phones for the Chinese firm. The news, which boosted Dixon's shares by 4%, comes after Xiaomi India revealed plans to start making wireless audio products in the country by partnering with electronics manufacturer Optiemus. India has been encouraging global companies to invest more in local manufacturing as a part of its efforts to become a powerhouse in the global electronics supply chain. Earlier in March, Xiaomi India President Muralikrishnan B. told Reuters that the company will open more stores beyond its current network of 20,000 retail partners and boost local procurement of mobile phone parts, in an effort to reduce costs. Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Savio D'Souza and Sonia CheemaOur Standards: The Thomson Reuters Trust Principles.

Persons: Xiaomi Corp's, Muralikrishnan, Navamya Ganesh, Savio D'Souza, Sonia Cheema Organizations: Dixon Technologies, Optiemus, Reuters, Thomson Locations: BENGALURU, India, HK, Bengaluru

☆ TSMC or Samsung? One chipmaker is the better play on A.I., geopolitics and earnings, analyst says
▼ + stars: | 2023-05-29 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

The Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics have emerged as two key players in the increasingly competitive landscape of the chip-making sector. "So, on a relative basis, I think TSMC offers better quality of earnings and also a much better free cash flow margin." "So, the quality of earnings, quality of management, and shareholder return favor TSMC over Samsung," Hosseini concluded. The tech analyst said that when it comes to advanced microchip manufacturing, TSMC is pretty much the only game in town. But they are still way behind TSMC," Hosseini said.

☆ Tesla vs. BYD: Here's why one fund manager prefers the Buffett-backed automaker
▼ + stars: | 2023-05-22 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

In an era defined by the need to tackle climate change, electric vehicles are seen as an increasingly important part of the solution. For Philip Ripman, portfolio manager at Storebrand Asset Management, one global EV automaker stands out: China's BYD — not Elon Musk's Tesla . Public transport operator Nobina already operates over 300 BYD electric buses across multiple Nordic cities. Affordable and high-end vehicles Another reason Ripman favors BYD over Tesla is the former's broader range of vehicles. On Tesla, Ripman expressed some concern over CEO Musk's distractions and their potential impact on the automaker's stock price.

☆ India's TCS receives $1.83 bln-worth advance purchase order from BSNL
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: 1 min

[1/2] A private security guard stands at the exit gate of the headquarters of Tata Consultancy Services (TCS) in Mumbai, India October 13, 2016. REUTERS/Shailesh AndradeBENGALURU, May 22 (Reuters) - Tata Consultancy Services (TCS.NS) on Monday said it received an advance purchase order valued over 150 billion rupees ($1.83 billion) to deploy a 4G network across the country from Indian state-run telco Bharat Sanchar Nigam Ltd (BSNL.NS). ($1 = 81.7800 Indian rupees)Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Janane VenkatramanOur Standards: The Thomson Reuters Trust Principles.

☆ Slowdown, recession or boom? Bank of America reveals the global stocks to play each eventuality
▼ + stars: | 2023-05-19 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

The investment bank screened for stocks based on their ability to withstand fluctuations in a slowdown, recession, and boom. "Historically, the 'Recession' phase is the typical successor of the 'Slowdown' phase, but a 'Boom' phase has also followed 'Slowdown' in the past." Under this scenario, Bank of America screened for stocks that are "high quality, [large] size, growth-over-value, rising momentum and low risk". For this scenario, Bank of America looked for stocks it defined as high quality, large, value-over-growth, and low risk. For this eventuality, the Wall Street bank identified stocks it considers value-over-growth, rising momentum, high risk, small market cap, and low quality.

☆ Nvidia's stock could rise fivefold in 10 years on A.I. trend, says fund manager
▼ + stars: | 2023-05-18 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Shares of the Silicon Valley-headquartered firm have doubled since the start of this year over positive investor sentiment toward A.I. Despite the gains, the stock is still down by 12% from its all-time high on Nov. 29, 2021, according to FactSet data. "But I think Nvidia has a good track record of demonstrating that they can." Ripman added that he could see a scenario where Nvidia could grow five-fold due to the market size and demand. "What this really comes down to is, I think we're just scraping the surface really of what A.I.

☆ Tesla and more: Morgan Stanley names EV stocks set to benefit as supply chain move West
▼ + stars: | 2023-05-17 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Morgan Stanley has identified several stocks to invest in as electric vehicle battery manufacturing shifts to the West. EV giant Tesla , auto parts maker Aptiv , and battery maker Freyr rank highly, according to Morgan Stanley, while Ford and Chinese batter maker CATL rank lower. Tesla Tesla is well placed to overcome the three challenges, Morgan Stanley said. Ford / CATL Morgan Stanley noted that companies like Ford and Chinese battery maker Contemporary Amperex Technology, or CATL, might face challenges when it comes to "onshoring" due to geopolitical concerns and potential technological barriers. Ford will own the new facility but will license battery manufacturing technology from CATL, including technical expertise.

☆ European stocks head for lower open as U.S. debt ceiling talks overshadow market sentiment
▼ + stars: | 2023-05-17 | by ( Holly Ellyatt | ) www.cnbc.com time to read: 1 min

Morgan Stanley has identified several stocks to invest in as electric vehicle battery manufacturing shifts to the West. As countries aim to reduce their dependency on China, which currently dominates 90% of the EV battery market, they will need to create a new supply chain for a decarbonized future, according to the Wall Street bank. It identified a number of potential winners and losers from the process. CNBC Pro subscribers can read more here. — Ganesh Rao

☆ Hedge fund says hard landing is 'most likely' and names 3 global stocks to play it
▼ + stars: | 2023-05-16 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

A U.S.-based hedge fund is predicting a hard landing scenario for stock markets despite a steady decline in inflation, with the S & P 500 falling into a bear market. "Livermore views the path forward as the most likely scenario for markets is a hard landing," Neuhauser said in notes to CNBC. The hedge fund manager added that despite this "soft landing" in inflation, "ultimately it's going to lead to a much harder landing with stocks as inflation remains sticky for some time to come." The hedge fund manager identified three global stocks that he believes will perform well if this scenario comes to fruition. Livermore, the hedge fund founded by Neuhauser in 2009, owns shares in Amaroq, along with billionaire investor Louis Bacon.

☆ Bank of America loves these 10 unloved global stocks with major upside
▼ + stars: | 2023-05-15 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Bank of America strategists have named the ten European stocks they believe are currently undervalued and could provide significant investment returns. These picks, which the investment bank refers to as the "Beat Factor Top 10," are primarily made up of industrial and financial companies. Bank of America analysts expect shares of Airbus to rise by 64% to 200 euros per share ($217) over the next 12 months. The "Beat Factor" is a measure Bank of America analysts use to identify the most divergent stock ideas on the FTSE Eurofirst 300. Despite the share price gains, Bank of America strategists remain bullish on the stock coming out of the earnings season.

☆ UBS is betting on European banks over automakers right now. Here's why
▼ + stars: | 2023-05-15 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Rising interest rates The European Central Bank's ongoing rate-hiking trajectory is one reason behind UBS' bullish stance on banks. Banks: No competition Banks' stellar returns are due to their expanding net interest margins. According to UBS, automakers face headwinds despite being cheap at 5.6 times earnings and 0.78 times price to book. The investment bank said European automakers face structural challenges while competing against Tesla and Chinese rivals. According to the bank's strategists, European car manufacturers also have less ownership of their supply chain, particularly in battery technology and software, which poses a risk to their profit margins.

☆ Goldman Sachs names 3 stocks to gain from Germany's $440 billion clean energy plans
▼ + stars: | 2023-05-11 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Goldman Sachs named the three global companies it expects to benefit from the German government's plan to spend nearly half a trillion euros on renewable energy infrastructure. The proposed measures include a 2030 target to have 80% renewable energy and cheaper financing for developers of clean energy sources through green bonds. Goldman Sachs has estimated that this German plan will create investment opportunities worth nearly 400 billion euros ($440 billion) in clean energy and power grid infrastructure. RWE Goldman Sachs said RWE , a renewable energy generator, could accelerate the development of clean energy projects and capture a market share equivalent to its current installed base globally. Goldman Sachs added that the U.S.'s IRA and Europe's REPowerEU initiative would also be a tailwind for the company's growth plans.

☆ Buying global A.I. stocks? Here are the 3 risks investors should watch closely, HSBC says
▼ + stars: | 2023-05-11 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Asian companies exposed to artificial intelligence have seen a 30% increase in value since November 2022 — when ChatGPT was unveiled. However, HSBC has warned that investors should consider three significant risks before investing in AI stocks: disappointing demand, increased competition, and regulations. "Nothing is more exciting for investors and entrepreneurs than discovering a potentially huge market for new products and services," said the bank's strategists led by Herald van der Linde. They added that these powerful narratives pushed stock prices up but eventually saw prices come back down due to various factors. Having laid out its framework, HSBC also named the following stocks exposed to artificial intelligence that their analysts cover.

☆ 'Too cheap to ignore': Bernstein predicts huge upside for these 3 clean energy stocks
▼ + stars: | 2023-05-10 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

But the sour sentiment toward the sector may be short-lived, according to the investment bank. Analysts at Bernstein say there is significant potential for growth in several clean energy companies, thanks to recent policy changes and increased investment. The investment bank added that despite the rising costs of renewable equipment and increasing rates, renewables remain more competitive than fossil fuels. Orsted Bernstein expects shares of Orsted to rise by nearly 60% to 975 Danish Krone ($144) a share. CATL Bernstein said battery-maker Contemporary Amperex Technology Co. Limited, also known as CATL, was its "top pick" in China.

☆ This under-the-radar EV charging stock could soar by 60%, Bank of America says
▼ + stars: | 2023-05-10 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Bank of America doubled down on its buy rating for electric vehicle charging company Wallbox and expects its shares to rise by more than 60% over the next 12 months to $5.5 a share. The Barcelona-based company manufactures home electric vehicle chargers and public charging systems for the North American and European markets. The stock trades on the New York Stock Exchange and has declined by 70% over the past year. For example, the bank added that growth has slowed due to slower adoption of electric cars amid supply chain disruption. Bank of America estimates that Wallbox has begun manufacturing these units and will benefit from U.S. subsidies in the Inflation Reduction Act.

☆ Here are 10 global stocks analyst love coming out of the earnings week, Bank of America says
▼ + stars: | 2023-05-08 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

However, according to strategists at Bank of America, there were more downward than upward revisions of company earnings estimates by analysts. The investment bank said European companies saw a decrease in their earnings per share (EPS) revision ratio to 0.85 in April, down from 1.12 in March. Analysts tend to downgrade stocks despite companies reporting bumper profits if those earnings are unlikely to grow in the future. The below table highlights 10 European large-cap stocks with high EPS revision ratio, according to Bank of America. The EPS revision ratio for Novo Nordisk was also in positive territory, thanks to its blockbuster weight-loss drug Wegovy and others in the pipeline.

☆ Semiconductor customers beginning to feel economic slowdown, says Microchip Technology CEO
▼ + stars: | 2023-05-08 | 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 EmailSemiconductor customers beginning to feel economic slowdown, says Microchip Technology CEOGanesh Moorthy, Microchip Technology CEO, joins 'Squawk on the Street' to discuss the chip sector's guidance from earnings, how China's reopening has affected Microchip's business and the supply picture Moorthy is seeing.

☆ Goldman Sachs names a slew of energy companies to buy right now as attitudes shift
▼ + stars: | 2023-05-05 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Goldman Sachs has identified a number of energy stocks to own ahead of an expected turn in the market's sentiment toward the oil and gas sector. Goldman's analysis comes after the energy sector posted stellar gains last year. Goldman expects a 10% increase in revenue from green investments at these companies this year compared to last year. The trend also indicates that a turning point may be approaching where larger energy companies could attract even more investment if they continue transitioning toward greener practices, the analysts added. Oil and gas companies have also been particularly attractive to investors over the past year thanks to their bumper profits.

☆ How to trade Volkswagen and BMW quarterly earnings results based on history
▼ + stars: | 2023-05-04 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

German carmakers Volkswagen and BMW are set to announce their first-quarter earnings later today. Similarly, Volkswagen reported significantly increased deliveries for the same period despite weaker business in China, its most important single market. The stock also surpassed the benchmark by 5.4 percentage points a week since the results and 6.5 percentage points a month out under the same scenario. However, its fortunes reverse for the better, with shares outperforming the benchmark after a week since the results 67% of the time. The German company shares beat the DAX by 1, 3, and 8 percentage points over the day, week, and month since the results, respectively, on exceeding expectations.

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