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A charging handle recharges a Volkswagen ID.4 electric vehicle (EV) parked at an EV charging station inside a parking garage owned by the City of Baltimore, in Baltimore, Maryland, U.S., March 23, 2023. Speaking at the Reuters Events Automotive USA 2023 conference in Detroit, Fischer said VW plans to build the under-$35,000 EV in the United States or Mexico. VW also is looking at localizing assembly of battery packs for the under-$35,000 EV to qualify for additional incentives under the U.S. Inflation Reduction Act, Fischer said. The German automaker previously has announced plans to build battery cells in Canada for its current and future North American-built EVs. Reporting by Paul Lienert in Detroit; Editing by Mark Porter and Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.
Persons: Bing Guan, Nio, Reinhard Fischer, Ganesh Iyer, Fischer, Iyer, Paul Lienert, Mark Porter, Sharon Singleton Organizations: Volkswagen, EV, City, REUTERS, Rights DETROIT, EVs, VW Group of America, Nio, Reuters, Automotive, VW, U.S, Thomson Locations: City of Baltimore, Baltimore , Maryland, U.S, North America, Detroit, United States, Mexico, Chattanooga , Tennessee, Puebla, South Carolina, Canada
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMicrochip CEO: We're going through classic inventory correction amplified by macro concernsMicrochip CEO Ganesh Moorthy joins 'Squawk on the Street' to discuss his thoughts on the company's quarterly earnings results, what Microchip needs to do to navigate the current environment, and more.
Persons: Ganesh Moorthy
Shares of chipmaker Nvidia fell sharply earlier this month after the U.S. government announced new restrictions on exporting advanced artificial intelligence chips to China. Investment bank Itau BBA's analysts believe the new export controls could reduce Nvidia's revenues from China by about 10% in 2025. However, the analysts say the stock's pullback has likely already priced in most or all of that impact. NVDA 1M mountain Itau BBA's $600 price target for Nvidia points to more than 40% upside from the current share price. In response to the plans for new export restrictions, Citi analyst Atif Malik cut his Nvidia price target to $575 from $630.
Persons: Thiago Alves Kapulskis, Atif Malik, Morgan Stanley's Joseph Moore, , Samantha Subin, Michael Bloom Organizations: Nvidia, U.S, Investment, U.S . Commerce Department, Citi Locations: China, Saudi Arabia
Investors will look to the upcoming earnings season to see whether stocks can recover from recent losses or if more declines are ahead. "All year, we've seen the steady weakening in European soft data and, more recently, hard data. In a note titled "Q3 Earnings - Make or break," Barclays analysts echoed that sentiment, suggesting that despite resilient earnings thus far, more mixed third-quarter economic indicators hint at equally varied results. UBS analysts have identified stocks that could surprise, both positively and negatively, when their earnings results are released in the coming weeks. Fowler said UBS analysts have historically been pretty accurate at predicting surprises, especially when combined with a value investing bias, which has tended to outperform.
Persons: Gerry Fowler, we've, Fowler, CNBC's, Fowler isn't, Emmanuel Cau, Stocks Organizations: UBS, Barclays, Santander, Ryanair, Siemens Energy, Nordic, Universal Music, AstraZeneca Locations: Europe
Microsoft could act as a defensive stock if the U.S. enters a mild recession next year, according to UBS analyst Karl Keirstead. Interest rates While higher interest rates pressure valuations across the tech sector, the UBS analyst expects Microsoft to benefit disproportionately if rates decline in 2024. The company's strong free cash flow generation also makes its stock less rate-sensitive than some of its tech peers, according to Keirstead. "The tech sector tends to be reasonably rate sensitive, and so in a declining rate environment, the tech sector will be one that a lot of investors will gravitate to," he said. "I think that notion of inverse sensitivity to rates is more powerful than the impact of rates on Microsoft's cash balance."
Persons: Karl Keirstead, Keirstead Organizations: Microsoft, UBS, Cloud, Nvidia, company's Locations: U.S, United States, California
Bearish signals, indicating potential selling pressure in the near future, have gripped a handful of global stocks that look close to forming what's known as a "death cross" chart pattern. A death cross is a price chart pattern that forms when a stock's 50-day moving average crosses below its 200-day moving average. The death cross is also used as a bear market predictor. Analysts are also generally bullish, with 11 out of 14 rating the stock as a buy. The median price target of all analysts compiled by FactSet points to a 47.5% upside for the stock.
Persons: Mitsumi, Thierry Pieton, FactSet Organizations: CNBC Pro, Magna International, Renault, Magna, U.S, RBC Capital, RBC, Scotiabank Locations: Belgian, French
However, Gimber believes Fed cuts in 2024 would likely coincide with declining corporate earnings, creating headwinds for stocks. Analysts are predicting 12% earnings growth for the S & P 500 as a whole in 2024. A further rate cut is also being priced in by November next year, according to data from CME's FedWatch Tool . "You have this disconnect at the moment: 12% earnings growth expected for next year and still the Fed expected to cut multiple times. It's about resilience in equities," Gimber said.
Persons: Hugh Gimber, Gimber, CNBC's, Dow Jones Organizations: Federal Reserve, Asset Management, , Catalyst, JPMorgan, Treasury Locations: Brazil, Mexico, South Africa
India's ITC misses profit estimates as competition, costs rise
  + stars: | 2023-10-19 | by ( ) www.reuters.com   time to read: +2 min
REUTERS/Vivek Prakash/File Photo Acquire Licensing RightsBENGALURU/CHENNAI, Oct 19 (Reuters) - India's ITC (ITC.NS) reported a smaller-than-expected rise in its second-quarter profit on Thursday, as the consumer goods major grappled with stiff competition from smaller rivals and higher prices of some commodities. Dove-soapmaker Hindustan Unilever said earlier in the day it lost some market share in its mass segment - comprising lower-priced products - due to competition. The tobacco-to-hotels conglomerate's profit still rose 10% to 49.27 billion rupees ($592.81 million), but missed analysts' average estimate of 49.54 billion rupees, according to data from LSEG. Revenue from operations rose 3% to 177.05 billion rupees, helped by a 10% surge in its cigarettes business. Other consumer goods majors Nestle India (NEST.NS) and Hindustan Unilever eased past quarterly earnings estimates earlier on Thursday, as city dwellers spent more on affordable pick-me-ups like cookies and coffee.
Persons: Vivek Prakash, Shirish Pardeshi, Navamya Ganesh Acharya, Varun, Anil D'Silva Organizations: ITC, REUTERS, Hindustan Unilever, Centrum Broking, Nestle India, Varun Vyas, Thomson Locations: Mumbai, BENGALURU, CHENNAI, LSEG ., Bengaluru, Praveen, Chennai
Ahead of the upcoming earnings season, Deutsche Bank has cut price targets on nearly 30 European stocks this week and upgraded just one to "buy." The bank's biggest cut to price target was for Denmark's energy giant, Orsted . In online food delivery, Deutsche Bank said its proprietary data shows demand stabilizing for takeaway apps across markets it monitors. Elsewhere in the European utility sector, the investment bank struck a positive tone in its outlook despite the price target cuts. Deutsche Bank analysts prefer integrated utilities like RWE , Enel , SSE , and E.ON , reiterating "buy" ratings on the stocks but lowering their price targets by 2% and 12%.
Organizations: Deutsche Bank, E.ON, Fineco Bank Locations: Swiss, Enel
Investors searching for income in today's volatile markets may want to look at the "magic seven" U.K. stocks identified by Berenberg. "The U.K. equity market is cheap," Berenberg analysts Jonathan Stubbs and Leoni Externest said in a note to clients on Oct. 13. "The median U.K. dividend yield is back to 3.6% and close to the highs of last year (3.8%)." Berenberg's analysis shows dividend yields above 4.5% have resulted in median returns near 30% for Rio Tinto, with a more-than-90% success rate. Aviva The insurer's 7.8% dividend yield has rebounded from below 2% during Covid-19.
Persons: Berenberg, Jonathan Stubbs, Leoni Externest Organizations: Tobacco, Rio Tinto, Aviva, Legal, General, British Locations: London, Rio, British, U.S, Germany, Rio Tinto
Investors seeking exposure to Japan's growing gaming industry should look at technology and entertainment behemoth Sony , according to Goldman Sachs. Goldman expects shares of Sony Group Corporation to rise by 25% to 16,000 yen ($107) over the next 12 months. In addition, Goldman Sachs said there was significant growth potential for Crunchyroll, Sony's anime streaming service based in California, which it acquired in 2017. "Our team estimates that overseas markets will account for 80% of Japanese anime sales by 2036," the bank's report said. As earnings contributions from Crunchyroll and GaaS titles become more apparent starting in fiscal year 2025, Goldman Sachs sees an increase in consensus earnings estimates and valuation multiples.
Persons: Goldman Sachs, FactSet Organizations: Sony, Bungie, Goldman, Sony Group Corporation, New York Stock Exchange, SONY, Microsoft, Activision Blizzard Locations: Tokyo, California
Birkenstock 's recent initial public offering (IPO) is expected to help boost shares of British footwear brand Dr. Martens , according to Investec analysts. The analysts pointed out that Birkenstock's sales last year were slightly higher than Dr. Martens' projected sales this year. However, the German company sells over twice the volume of footwear as Dr. Martens, which has a higher average selling price. DOCS-GB YTD line Similarities and differences Birkenstock's business model and brand ethos have many similarities to Dr. Martens, according to the analysts. RBC said it has a "Sector Perform" rating, equivalent to "hold" at other investment banks, on Dr. Martens.
Persons: Birkenstock, Martens, Kate Calvert, Ben Hunt, Dr Martens Organizations: New York Stock Exchange, RBC Capital Markets, RBC Locations: London, British, Germany, U.S, Europe, Asia, Pacific
Hedge fund manager Dan Niles has revealed that he is still shorting Tesla 's stock, despite being bullish on the broader market. Niles, cofounder and portfolio manager of the Satori Fund, told CNBC's "Squawk Box" Tuesday that he sees significant headwinds for Tesla in the months ahead that could push the stock lower. TSLA YTD line Having more than doubled in value this year, Niles said the stock now faces a very different environment to earlier this year. It should be noted that Niles' Tesla short position is relatively small and accounts for about 1% of his portfolio. In contrast, the fund manager has previously made aggressive bets of up to 15% of the fund on stocks where the hedge fund has had a high conviction.
Persons: Dan Niles, Tesla, Niles, CNBC's, Elon Musk, Thomas Edison, he's Organizations: Tesla, Cox Automotive, CNBC
Bank of America has identified five global stocks it says are set to benefit as the use cases of artificial intelligence applications grow significantly. In an Oct. 3 note titled "End-device AI: Great potential with hidden gems awaits," the bank said customized and private AI services could soon be brought directly to users' end devices, revolutionizing smartphones, tablets, cars and more. The report named semiconductor leaders like Qualcomm , MediaTek , Nordic Semiconductor, SK Hynix and Renesas as key potential beneficiaries. Qualcomm Price target: $145 (31% upside) Bank of America said automakers are expected to use advanced end-device AI capabilities from Qualcomm's Ride platform for in-car services. MediaTek Price target: 1,100 New Taiwan dollars (40% upside) Bank of America expects the firm to add generative AI functions to its next flagship smartphone chips.
Persons: Brad Lin, MediaTek Organizations: of America, Bank of America, CES, MWC, Qualcomm, MediaTek, Nordic Semiconductor, SK Hynix, Meta, SK Hynix Price Locations: Taiwan
The next 10 years will be unlike the last two decades for investors, according to investment advisors and wealth managers. Those conditions could create more volatility and lower returns for assets that have done well over the past decade, according to Monchau. ELTIFs allow individual investors to invest alongside institutions in assets like infrastructure, private equity and private credit. "The ability to generate income is going to be far and away the better place for the next decade for investment," he said. For younger investors more than 10 years from retirement, Cox recommends a 100% equity portfolio, maximising returns with low-cost index ETFs.
Persons: Charles, Henry Monchau, Monchau, There's, Goldman Sachs, Franklin Templeton, Jamie Cox, Cox, it's, maximising Organizations: CNBC Pro, Swiss, BlackRock, Harris Financial Group, Unilever, Nestle, Broadcom Locations: Swiss, Geneva, Richmond , Virginia
European markets open lower amid Middle East turmoil
  + stars: | 2023-10-09 | by ( Holly Ellyatt | ) www.cnbc.com   time to read: 1 min
The next 10 years will be unlike the last two decades for investors, according to investment advisors and wealth managers. Charles-Henry Monchau, chief investment officer at Swiss private bank Syz, said investors risk making long-term decisions with a "cognitive bias" and urges those investing $1 million over the next decade not to extrapolate too much from recent history. Jamie Cox, financial planner at Harris Financial Group, believes international stocks will outperform U.S. stocks in the coming decade as rising rates and inflation change market dynamics. Both share with CNBC Pro their thoughts on how investors with $1 million should invest over the next decade. Subscribers can read more here.
Persons: Charles, Henry Monchau, Jamie Cox, — Ganesh Rao Organizations: Harris Financial Group, CNBC Locations: Swiss
Disney is exploring various possibilities, including selling some of its Indian operations or a mix of assets from the unit, the report said, citing people familiar with the matter. Disney, Sun TV and the Gautam Adani-controlled Adani group did not immediately respond to Reuters' request for comment. Disney was exploring options to sell or find a joint venture partner for its India digital and TV business, Reuters reported in July. Disney has faced increasing pressure due to the emergence of Reliance Industries' (RELI.NS) streaming platform JioCinema, run by Asia's richest man, Mukesh Ambani. Ambani has been marketing his streaming platform by offering free access to the Indian Premier League cricket tournament, digital rights of which were earlier with Disney.
Persons: Dado Ruvic, Gautam Adani, Kalanithi Maran, Gautam, Disney, Mukesh Ambani, Ambani, Navamya Ganesh, Savio D'Souza Organizations: Disney, REUTERS, Rights, Sun TV Network, Bloomberg, Sun TV, Reuters, Reliance Industries, Indian Premier League cricket, Thomson Locations: India, Bengaluru
The U.S. is headed for a major debt crisis due to its fiscal deficit being at the "worst structural point since World War II," according to value investor Matthew McLennan. Over the past two decades, the federal government had its smallest budget deficit of $0.16 trillion in 2007, just before the global financial crisis. The hedge Given his bearish view, McLennan prefers gold as an investment hedge. Stocks Beyond gold, McLennan said he sees value in stocks like Meta and Oracle , two of the top equity holdings in the Global Fund. McLennan said his fund has owned Oracle since it launched an AI-powered database five years ago.
Persons: Matthew McLennan . McLennan, McLennan, hasn't, it's, you've, Meta, OpenAI Organizations: Global Fund, Security, Treasury, Meta, Oracle, Nvidia, Microsoft Locations: U.S, United States
Employees of Indian software company Infosys walk past Infosys logos at their campus in the Electronic City area in Bangalore September 4, 2012. REUTERS/Vivek Prakash/File Photo Acquire Licensing RightsBENGALURU, Oct 5 (Reuters) - J.P.Morgan analysts expect investors to parse upcoming second-quarter results and commentary from Indian IT companies for signs of recovery in deal signings in fiscal 2025 following a "washout" year. The focus for this quarter's earnings reports will be on deal signings as well as the split of new deals versus renewals to assess fiscal 2025 growth, the analysts said. J.P.Morgan expects high single-digit earnings growth, in percentage terms, for large-cap IT companies in fiscal 2025, while market expectations are for double-digit growth. Nonetheless, J.P.Morgan upgraded Infosys (INFY.NS) to "neutral" from "underweight" saying lower expectations were baked in and its large deal wins give visibility into fiscal 2025.
Persons: Vivek Prakash, Ankur Rudra, Bhavik Mehta, Rudra, Mehta, Navamya Ganesh, Savio D'Souza, Janane Organizations: Indian, Infosys, REUTERS, Rights, TCS, Wipro, J.P.Morgan, Thomson Locations: Electronic, Bangalore, Indian, Bengaluru
LONDON — Shares of Britain's Metro Bank were briefly suspended from trading twice early Thursday, in a volatile session that saw the stock shed more than 29% from the Wednesday close. Investors traded more than 1.6 million shares immediately after the stock market opened Thursday, according to FactSet. Typically, less than 100,000 Metro Bank shares change hands every hour. Metro Bank was valued at £87 million as of the Wednesday close, according to Reuters. As such, the Metro Bank would be subject to higher capital requirements — a concern that has weighed on investors.
Persons: Keefe, Woods, — CNBC's Ganesh Rao Organizations: Britain's Metro Bank, London Stock Exchange, CNBC, Reuters, Metro Bank, Investors, Bank of, Prudential, Authority Locations: London
IT Services" on Sept. 28, Citi analysts said banks are poised to outperform the information technology services sector over the next 12 months. "We thus believe Indian banks will not be directly impacted by an uncertain global growth or global higher-for-longer policy rate cycles." The bank's analysts expect private sector banks to continue gaining market share from public sector banks. However, Citi noted increasing competitive pressures from smaller firms vying for deals in the IT services sector. The Citi analysts also said that banks are trading close to historical averages on a price-to-book basis.
Persons: Surendra Goyal, , Joanna Tan Organizations: Citi, ICICI Bank, IndusInd Bank, IT, New York Stock Exchange, IT Services Locations: India
Irrational behavior due to concerns over the stability of the U.S. banking system has made Charles Schwab 's stock a cheap investment opportunity, according to value investor Daniel O'Keefe. O'Keefe said this "cash sorting" was mistaken for a bank run. "On the negative side, cash sorting moved back up in August post the July Fed hike, and Ameritrade client attrition around conversion activity also rose considerably." "We believe fears of a reacceleration in cash sorting behavior are overblown," the JPM analysts said in a note to clients on Sept. 20. He initiated a position in Schwab for the value fund, calling it "a phenomenal business" trading at a discount.
Persons: Charles Schwab, Daniel O'Keefe, Schwab, O'Keefe, " O'Keefe, It's, Brian Bedell, Devin Ryan Organizations: Artisan Partners, Artisan, Fund, CNBC, Schwab, Deutsche Bank, JMP Securities Locations: U.S, Schwab
Veteran emerging markets investor Mark Mobius has named Alibaba and Tencent as key stocks in any portfolio investing in developing economies. Mobius said the Chinese technology giants "could be the foundation of any portfolio" despite recent volatility. Mobius is known for his long-term conviction picks of smaller companies, but stressed the resilience of the two Chinese tech titans. The fund manager said he likes the agility and profitability of smaller tech companies in the region but acknowledged geopolitical risks. So these companies are really very interesting companies," Mobius added.
Persons: Mark Mobius, Mobius, Alibaba, BABA, Franklin Templeton, they're, CNBC's, James Lee, Mizuho, It's Organizations: NYSE, Mobius Capital Partners, Hong, Investment, Mizuho Securities, Franklin, Taiwan Semi, Nvidia, AMD, Fund, Zilltek Technology Locations: Hong Kong, China, Taiwan, Beijing, TSMC, California
As interest rates potentially peak, investment advisors say there are now opportunities for hefty gains through certain government bonds. This was during the Covid-19 pandemic when the Bank of England had just cut rates to 0.1%. "You potentially could make a good capital appreciation when interest rates start to fall," Amis added. Amis expects the Bank of England to cut interest rates by 0.25 percentage points in August 2024. Meanwhile, interest rate traders in the U.S. expect the Federal Reserve to implement its first rate cut in July 2024.
Persons: Matthew Amis, Amis, Abrdn, Iain Stealey, Stealey Organizations: Bank of England, U.S, Treasury, Bank of, JPMorgan Asset Management, Federal Reserve Locations: U.K, U.S
In pictures: The festival of Ganesh Chaturthi
  + stars: | 2023-09-28 | by ( ) www.reuters.com   time to read: 1 min
[10/18] Devotees perform rituals and pray to an idol of the Hindu god Ganesh, the deity of prosperity, in MumbaiDevotees perform rituals and pray to an idol of the Hindu god Ganesh before it is immersed in the sea beside the Gateway of India on the seventh day of Ganesh Chaturthi in Mumbai, September 25. REUTERS/Francis MascarenhasMUMBAI, INDIA
Persons: Ganesh, Ganesh Chaturthi, Francis Mascarenhas Organizations: REUTERS Locations: Mumbai, India, Francis Mascarenhas MUMBAI
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