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☆ 'No one can blame you for backing Sequoia': It's a rough time to be raising as a solo venture capitalist in Europe
▼ + stars: | 2023-09-19 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +5 min

Europe, often a few years behind when it comes to startup trends, is also starting to produce its own solo GPs. After a record-breaking 2021, bigger VC funds in Europe have generally found it more challenging to raise their next funds. Lots of fund managers speak to everyone and waste lots of time going over unqualified leads," she said. In short, knowing who to pitch for investment is crucial when looking to raise funds. One advantage for solo funds in Europe is that smaller funds — often $15 million to $20 million — are easier to return than larger funds, said David Cruz e Silva, an angel investor and LP in smaller VC funds through EU.VC.

Persons: Gloria Baeuerlein's, Robin, Robin Capital, Sarah Drinkwater's, Harry Stebbings, Annelie Ajami, there's, VCs, Ramzi Rafih, Rafih, Carolina Huaranca, Joe Schorge, Masha Butler, Sam Altman's, Butler, David Cruz e Silva, Ajami Organizations: Ventures, London, KKR, Silver, Close, Sequoia, Day One Ventures Locations: America, Sand, Europe, profligacy, Dubai, Carolina, San Francisco, Swiss, London, EU.VC

☆ How to get an even higher CD rate than you see advertised
▼ + stars: | 2023-09-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Higher yields on certificates of deposit are out there, but you'll have to venture beyond your favorite bank to get them. "There could be as much as a 50-basis point difference going to a brokered CD," he said. Brokered vs. bank offerings With a bank CD, the investor goes directly to the institution to buy the instrument. For instance, brokered CDs purchased via Vanguard begin at 1 to 3 months and go out beyond 10 years. The value of the CD will fluctuate with interest rates, with the price declining as yields run higher.

Persons: Malcolm Ethridge, Greg McBride, McBride, Ethridge, Michael Bloom Organizations: Wealth, Vanguard, Bankrate.com . Bank, Federal Deposit Insurance Corp Locations: Rockville , Maryland

Traders cheered the expected end of rate hikes that have raised borrowing costs from minus 0.5% in just over a year. That sent euro zone government bond yields tumbling, the euro down and stocks (.STOXX) higher. The ECB cut its outlook for euro area growth this year to 0.7%, while economists polled by Reuters expect growth of 0.6%. A market rally is also likely unwelcome to the ECB. Hawkish policymakers have started calling for an earlier end to PEPP reinvestments, and the ECB is likely to begin a debate on furthering its balance-sheet runoff with rate hikes likely done.

Persons: Charles Diebel, Simon Bell, Jason Simpson, Anna Stupnytska, reinvesting, Mediolanum's Diebel, reinvestments, Divyang Shah, Christine Lagarde, Shah, Yoruk Bahceli, Naomi Rovnick, Dhara, Dhara Ranasinghe, Hugh Lawson Organizations: European Central Bank, Traders, Reuters Graphics, Mediolanum Asset Management, ECB, Reuters, Legal, General Investment Management, State, Fidelity International, Thomson Locations: Italy, Germany

European Central Bank (ECB) President Christine Lagarde speaks to the media following the Governing Council's monetary policy meeting at the ECB headquarters in Frankfurt, Germany, July 27, 2023. "It's such a close call between the pause and the rate hike," said ING's global head of macro Carsten Brzeski. Traders are torn but favour an ECB pause, pricing in around a 40% chance of a hike. For many economists, one thing is clear: if the ECB has further tightening to deliver, September is likely its last chance. Even the hawks, keeping a hike on the table, say fresh ECB projections on Thursday are key to the decision.

Persons: Christine Lagarde, Kai Pfaffenbach, Reinhard Cluse, Mario Centeno, Isabel Schnabel, Austria's Robert Holzmann, Iain Stealey, Philip Lane, Kaspar Hense, Yoruk Bahceli, Stefano Rebaudo, Dhara Ranasinghe, Susan Fenton Organizations: European Central Bank, ECB, REUTERS, Central Bank, Traders, UBS, JPMorgan Asset Management, Reuters, ING, BlueBay Asset Management, Reuters Graphics Reuters, Thomson Locations: Frankfurt, Germany, Italy

☆ Ballooning US deficit will keep bond yields high, even as inflation cools, market veteran says
▼ + stars: | 2023-09-11 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Despite cooling inflation, a growing US deficit will force yields to stay elevated, Ed Yardeni wrote. The 10-year Treasury yield is likely to remain elevated at around 4.25%-4.5%. "That's the highest ever excluding during the Covid-19 pandemic, despite Biden's claim that his administration has implemented measures to slash the deficit," Yardeni wrote. So, even as inflation heads towards the Federal Reserve's 2% target rate, the 10-year Treasury bond is likely to remain elevated at around 4.25%-4.50%, the market veteran said. Increasing the yield may be necessary as net inflows into bond mutual funds and ETFS has dwindled, Yardeni wrote.

Persons: Ed Yardeni, That's, Yardeni Organizations: Service, Treasury Department, Federal, Social Security, Treasury, Fed Locations: Wall, Silicon

☆ A millionaire who retired at 34 made over $7,000 in passive income in one month from stocks and bonds. He explains how he built a $2.9 million account that pays his expenses while it continues to grow
▼ + stars: | 2023-09-09 | by ( Laila Maidan | ) www.businessinsider.com time to read: +8 min

For 13 years, he invested at least 50% of his salary to grow his retirement portfolio. The latter portion allows him to access his retirement income before the age of 59 and a half without incurring a 10% penalty. The stock exposure in that account is mainly through the iShares Core S&P 500 ETF (IVV), where he has about $1 million invested. This roughly means you need to have $1 million invested into the index to earn $15,400. Therefore, only 1% of his brokerage portfolio is allocated to a few individual tech stocks.

Persons: Sam Dogen, Goldman Sachs, He'd, Dogen, he's, He's, I've Organizations: Credit Suisse, Goldman, Wealth, Fidelity, Treasury Locations: New York City, San Francisco, IVV

☆ The Fed's balance sheet reductions have hit $1 trillion — but market enthusiasm for bonds has held off turmoil
▼ + stars: | 2023-09-06 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The Fed's massive quantitative tightening campaign has had limited effect on the market. That's as private sector participants have taken over its role in the Treasury market. These balance sheet reduction efforts are more commonly known as quantitative tightening, and are a strategy deployed by the central bank to drain excess liquidity from markets. While the central bank isn't selling bonds outright, running off its balance sheet has a similar effect of reducing liquidity by removing a large buyer from the market. AdvertisementAdvertisementBut since its June 2022 implementation, QT has fueled market concern, given the history of previous balance sheet reductions.

Persons: Louis, redemptions, Louis Fed Organizations: Treasury, Service, Federal Reserve, Bloomberg, Fed, Louis Fed Locations: Wall, Silicon

☆ JCPenney CEO: Working families are struggling to get by as inflation bites
▼ + stars: | 2023-09-05 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —JCPenney CEO Marc Rosen sees plenty of evidence that working-class families are struggling. “And that customer is facing a tougher economic environment.”The JCPenney CEO pointed to the snowballing effect inflation has had on family budgets, noting that the typical household is spending about $700 more per month than they did two years ago for the same goods and services. He pointed to strong private brand sales for apparel as well as for home goods like cookware and small appliances such as blenders and toasters. The JCPenney CEO wouldn’t directly answer whether the department store plans to return to the public markets through an initial public offering. “We think there are a lot of advantages right now to being a private company,” Rosen said, noting that JCPenney’s owners are reinvesting in the company and are taking a “long-term perspective” on that investment.

Persons: Marc Rosen, Liz Claiborne, Rosen, ” Rosen, delinquencies, “, JCPenney, wouldn’t Organizations: New, New York CNN, CNN, “, JCPenney, New York Federal Reserve, ” Bank of America, Simon Property Group, Brookfield Asset Management Locations: New York

☆ The US Army is rushing to rearm its electronic warriors after watching Russia and Ukraine jam each other's drones
▼ + stars: | 2023-08-15 | by ( Michael Peck | ) www.businessinsider.com time to read: +6 min

Electronic warfare has played a prominent role during the war in Ukraine. This has put fresh impetus behind the US Army's electronic-warfare upgrades. Concern about electronic warfare, or EW, isn't new, nor is the US deficient in all EW aspects. For its part, Russia has been able to use electronic warfare to send Ukraine's GPS-guided JDAM glide bombs and HIMARS rockets off course. Most armies — or at least the high-tech ones — are vulnerable to electronic warfare, but the US military is especially vulnerable because its way of war is so dependent on electronic communications.

Persons: Douglas Bush, Simon Mictizic, Bush, Charles Brown Jr, Denis Abramov, Brown, Lockheed Martin, Michael Peck Organizations: Service, US Army, Army, Army's 1st Infantry Division, Staff, Air Force, Joint Chiefs of Staff, Navy, Russian Defense Ministry, Mil.ru, Domain Command, GPS, Support Force, US, Combat, Stryker, TLS, Defense, Foreign Policy, Twitter, LinkedIn Locations: Ukraine, Russia, Wall, Silicon, Russian, China, Forbes

☆ The Fed may be done hiking rates but there's another policy move that still poses a big risk to stocks
▼ + stars: | 2023-08-10 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

The Fed may be nearing the end of its rate hikes but its balance sheet reduction plans still pose a big risk to stocks. The Fed has reduced its balance sheet by $900 billion over the past year and is showing no signs of stopping. Continued draining of liquidity presents a risk for equities," Ned Davis Research said in a Thursday note. The Fed has been reducing its balance sheet by about $80 billion per month, and stocks tend to perform well when the exact opposite happens, according to NDR. And its balance sheet reduction policy can have a big impact not only on the stock market, but also the economy.

Persons: Ned Davis, Joseph Kalish, Kalish Organizations: Fed, Ned Davis Research, Service, NDR Locations: Wall, Silicon

I used to be worried about needing money I had left in a CD — but CD laddering helps with that. This ensures that as CD rates fluctuate, I'll have access to great APYs that become available. Since my CD ladder is set up with a mix of short-term and long-term CDs, once the short-term CDs mature, I replace them with long-term CDs instead of short-term ones. As the short-term CDs mature and are reinvested in long-term CDs, the original long-term CDs will become closer to maturing. That way, when a CD comes to term, I can scope out other CD options with higher rates and reinvest the cash into that new CD.

Persons: I've, I'd, I'm Organizations: Service Locations: Wall, Silicon

☆ Downside protection costs are at a 15-year low, Bank of America says. Here's how to hedge
▼ + stars: | 2023-08-03 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

The cost of hedging against a potential stock market downturn has hit a 15-year low, according to research from Bank of America. On the other end of the spectrum, a call option's value typically rises when the S & P 500 goes up. Bank of America said that the cost of downside protection had fallen to a 15-year low, reaching 3.3% of a portfolio. The Global X S & P 500 Tail Risk ETF provides a potential alternative for those wanting to avoid trading options. This ETF offers exposure to the S & P 500 index, while using protective puts to mitigate significant sell-offs of more than about 10%.

Persons: Benjamin Bowler Organizations: Bank of America, Bank of, Street

☆ Bank of England forecasts 150 billion pound loss from QE gilt programme
▼ + stars: | 2023-07-25 | by ( David Milliken | ) www.reuters.com time to read: +3 min

LONDON, July 25 (Reuters) - The Bank of England forecast on Tuesday that it would make a net loss of just over 150 billion pounds ($193 billion) over the next 10 years as it unwinds its quantitative easing (QE) gilt purchases, up from 100 billion pounds projected in April. In the short term, the BoE expects the government to pay around 40 billion pounds a year in 2023, 2024 and 2025, roughly 10 billion pounds a year more than its last estimate in April. Markets currently expect BoE rates to peak at 5.75% later this year, up from around 5% at the time of April's report. The BoE projections assume holdings continue to fall at their current target rate of 80 billion pounds a year. That is still more than 50 billion pounds greater than forecast in April.

Persons: Rishi, BoE, BoE Governor Andrew Bailey, David Milliken, Paul Sandle, Kylie MacLellan, Andy Bruce Organizations: Bank of England, Conservative Party, Thomson

☆ Here are the only 4 global stocks to raise dividends by more than 10% for the past 15 years
▼ + stars: | 2023-07-25 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Among the stocks screened by CNBC Pro, the 98-year-old firm offered the highest dividend yield at 3.3%. Dividend yield is calculated as the dividend per share divided by the share price. The dividend yield can go up if the share price drops, and conversely, the yield can drop if the share price goes up. The stock has risen 340% in price returns, which strips out dividend payments, over the past 15 years. If the stock price also appreciates, the total return for the investor (capital gains plus dividends) would be even higher.

Persons: Japan — Organizations: CNBC Pro, Atrion Corporation, Kerry Group Locations: Brussels, Africa, Japan

☆ Silicon Valley has been subsidizing millennials' lifestyles for most of our adult lives. We'll still end up poorer.
▼ + stars: | 2023-07-19 | by ( Sirena Bergman | ) www.businessinsider.com time to read: +3 min

There's a reason why in the 2010s everything from Ubers to Netflix subscriptions felt oddly cheap. Now alternatives are gone and prices are up — so we'll still end up poorer. There's a reason why the 2010s felt like a great time for young people who wanted their lives phone-orientated and cheap. The progressives, perhaps, were a little too willing to compromise their principles for convenience. There was little public outcry as this all ostensibly benefited consumers, and temporarily created what the New York Times' Kevin Roose described as a "millennial lifestyle subsidy."

Persons: Adam Rogers, Kevin Roose, Netflix weren't, we're Organizations: Netflix, Morning, Silicon, New York Times

☆ Restauranteur Marcus Samuelsson on food inflation, reinvesting in Black business and growth
▼ + stars: | 2023-07-12 | 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 EmailRestauranteur Marcus Samuelsson on food inflation, reinvesting in Black business and growthChef Marcus Samuelsson joins 'Power Lunch' to discuss the state of the consumer in restaurant spending, restaurant risks and food inflation.

Persons: Restauranteur Marcus Samuelsson, Marcus Samuelsson

☆ Silverstone, a Storied Formula 1 Track, Wants to Continue Its Tale
▼ + stars: | 2023-07-07 | by ( Alex Kalinauckas | ) www.nytimes.com time to read: +1 min

In 2008, Bernie Ecclestone, head of Formula 1 at the time, said the race would leave Silverstone. Then in 2017, the British Racing Drivers’ Club, the owner of the track, activated what is called the break clause in its hosting agreement, which would allow the club to stop holding the race. After two years of talks, a new deal was struck with Formula 1 and its new owner, Liberty Media, which had replaced Ecclestone. Based on its most recent financial filing, Silverstone made £6.9 million in profit in 2021. “The members, the 820 or so racing drivers or former racing drivers,” he said, don’t take money out.

Persons: Bernie Ecclestone, Ecclestone, Silverstone, Pringle, ”, don’t Organizations: Silverstone, British Racing Drivers ’, Liberty Media

☆ Inside the furious debate over New York City's new tax on drivers, which New Jersey Democrats are fighting against tooth and nail
▼ + stars: | 2023-07-02 | by ( Eliza Relman | ) www.businessinsider.com time to read: +11 min

Long gone are the days of eerily deserted Manhattan streets as New York City ground to a near-halt during the height of the COVID-19 pandemic. Cars fill Midtown amid the coronavirus pandemic on March 19, 2021 in New York City. The Empire State Building and Tourist District are seen while Traffic jam is reported along the route to New York City on August 17, 2022, in Jersey City, New Jersey. Komanoff said most congestion pricing advocates agree — they don't want drivers who enter lower Manhattan through the tunnels to pay the full congestion toll. But congestion pricing still has a long way to go, particularly as long as New Jersey leaders stand in the way.

Persons: Kathy Hochul's, Long, Kathy Hochul, Gottheimer, Jersey Sen, Bob Menendez, Phil Murphy, Noam Galai, it's, Charles Komanoff, Komanoff, Sam Schwartz, Eduardo Munoz Alvarez, George Washington, Sen . Menendez, Bill Pascrell, Schwartz, Hochul, Murphy, Sarah Kaufman, University's, Ritchie Torres, Tom Williams, Torres, he's Organizations: Gov, New, New Jersey Democrats, Morning, Metropolitan Transportation Authority, New York Gov, Central Business District, Federal Highway Administration, MTA, Democratic, New York Supporters, New York, Mexico City, George Washington Bridge, Center for Transportation, New York Rep, Garden, Komanoff, Democratic Rep Locations: New York City, Manhattan, New Jersey, ., Jersey, New York, New, London, Stockholm, Singapore, York, Toronto, Mexico, Seattle, Los Angeles, Chicago, Boston, Jersey City , New Jersey, Holland, Lincoln, Bronx

☆ India and China are buying new tanks designed to fight on one of the world's highest battlefields
▼ + stars: | 2023-07-02 | by ( Benjamin Brimelow | ) www.businessinsider.com time to read: +8 min

Both countries are also investing in new light tanks designed for high altitudes and rough terrain. Consequently, India is planning to developing its own light tank to level the playing field. The Type 15A Type 15 tank on display at the Beijing Exhibition Center in October. NOEL CELIS/AFP via Getty ImagesChina has coped with these issues by deploying its Type 15 light tank, one of the few modern light tanks produced in the 21st century. India has tried on and off since 1983 to develop a new light tank but has never settled on a model.

Persons: —, NOEL CELIS, Arjuna, Ajay Aggarwal, hasn't, Danish Ismail, Narendra Modi's, Toubro, Zorawar Singh Organizations: Service, US Army, Bilderwelt, Beijing Exhibition Center, Getty Images, Abrams, Getty, Hindustan Times, Indian Ministry of Defense, REUTERS, Danish, India's Ministry of Defense, Larsen, Rolls Royce Locations: India, Bologna, China, Japan, Ladakh, AFP, Getty Images China, Russia, Western, People's Republic of China, New Delhi, Pakistan, Indian, Belgian

I'm trying to double how much passive income I make — first, by investing it in new side hustles. I'm on the lookout for the best high-yield savings accounts and CDs to roll my money into each year. While I prefer low-risk investments, I also sometimes put money in an index fund like the S&P 500. Once the course launched, it brought a variable amount of passive income every month (from $150-$600 a month). Not only was I able to double that initial investment, but the money helped me fuel a new recurring passive income stream.

Persons: I'm, —, it's, It's Organizations: Service Locations: America

☆ The EU wants to skim $3 billion a year in interest from frozen Russian assets and give it to Ukraine
▼ + stars: | 2023-06-30 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

The EU is considering using the interest generated from frozen Russian assets to help rebuild Ukraine, per CNN. The bloc has been considering seizing frozen Russian assets for this purpose since last year. "It's the best way of using these assets in accordance with EU and international law," Anders Ahnlid, the director general Sweden's national trade board, a government agency, and the head of the EU working group looking into frozen Russian assets, told CNN. This means it would take at least 124 years to help rebuild Ukraine if the interest proceeds were the only funding source. Other options that the EU has considered over the last year include seizing Russian assets and reinvesting the proceeds, or taxing their profits.

Persons: —, Anders Ahnlid, Tiffany Comprés, Comprés, Janet Yellen Organizations: CNN, Service, European, World Bank, EU, FisherBroyles, United Nations, Criminal, Kremlin, European Commission Locations: Ukraine, European Union, United States

☆ Rebuilding Ukraine after the war could cost $411 billion. The EU thinks an estimated $3 billion interest generated from frozen Russian assets every year could help.
▼ + stars: | 2023-06-30 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

The EU is considering using the interest generated from frozen Russian assets to help rebuild Ukraine, per CNN. The bloc has been considering seizing frozen Russian assets for this purpose since last year. The assets would likely generate about 3 billion euros, or $3.3 billion, each year, he told the network. This means it would take at least 124 years to help rebuild Ukraine if the interest proceeds were the only funding source. Other options that the EU has considered over the last year include seizing Russian assets and reinvesting the proceeds, or taxing their profits.

Bidenomics gets a rebootPresident Biden plans to double down on his economic record in a big campaign-style speech on Wednesday. Yet despite the good news, Mr. Biden hasn’t seen a big jump in his popularity, and he trails his Republican rivals, according to some polls. “Bidenomics” will be at the heart of the president’s message. “But it’s working.” The Donilon-Dunn memo tries to give the messaging around Bidenomics a reboot. They point to how, for example, the CHIPS Act, the Inflation Reduction Act and the infrastructure law are creating jobs in the high-tech, manufacturing and green sectors.

Persons: Bidenomics, Biden, Biden hasn’t, “ Bidenomics, Anita Dunn, Mike Donilon, Michael D, ”, Dunn Organizations: Republican, Biden

It's focused on maximizing your after-tax yield with a diverse, low-cost blend of bond ETFs. Read our review Read Our Review A looong arrow, pointing rightWhy you should consider an automated bond portfolioWealthfront's automated bond portfolio pays a 5.59% yield, which is higher than Wealthfront's own cash account that pays 4.55% to 5.05%. Also, the automated bond portfolio may be tax-advantaged, but there's no guarantee that it will work. But neither platform offers automated investing specifically for bond ETFs, so passive investors are better off with Wealthfront. It also invests in a blend of commission-free bond ETFs and iShares bond ETFs.

Persons: Wealthfront, —, Charles Schwab, you'll Organizations: Bond, Service, SEC, Reading Chevron, Treasury, Fidelity, Wealthfront

The rapid rise in gilt yields has consequences for the wider economy. To some investors, gilts now increasingly look a bargain as 6% BoE interest rates appear unrealistic. Two-year gilt yields have risen by 1.1 percentage points this year, compared with a 0.3 percentage point increase for German two-year yields and 0.2 percentage points for U.S. Treasuries . Raising interest rates to 6% would "succeed in destroying demand" in the wider economy, he said. Ten-year gilt yields now pay an interest rate nearly 2 percentage points higher than the equivalent German government bond .

Persons: BoE, Liz, Britain's, Jim Leaviss, BoE Governor Andrew Bailey, gilts, We've, Mike Riddell, Riddell, Moyeen, There's, Islam, Naomi Rovnick, David Milliken, Toby Chopra Organizations: Labour Party, Bank of England, Bank of, Italy, Reuters Graphics, Allianz Global Investors, U.S, Barclays, Thomson Locations: Bank of England, Britain, British, gilts

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