Indian households expect a sharp pickup in inflation over the next three months, Reserve Bank of India surveys showed, reflecting concerns over the conflict in the Middle East. Households’ current inflation perception rose 30 basis points in a survey conducted during February 25 to March 10 in 19 major cities. Expectations for inflation three months ahead climbed 60 basis points, while the one-yea...
Indian households expect a sharp pickup in inflation over the next three months, Reserve Bank of India surveys showed, reflecting concerns over the conflict in the Middle East. Households’ current inflation perception rose 30 basis points in a survey conducted during February 25 to March 10 in 19 major cities. Expectations for inflation three months ahead climbed 60 basis points, while the one-year outlook edged up 20 basis points, the RBI said in its latest survey released Wednesday. “Households expect price and inflationary pressures across most of the product groups including food product, non-food product, and cost of services for both the time horizons,” the RBI said. In such surveys, the direction of change, rather than the absolute level, is more important. Earlier in the day, the RBI kept key policy rates unchanged , as it waited to monitor the impact of surging oil prices on the economy. Governor Sanjay Malhotra warned that elevated commodity prices and supply chain disruptions could weigh on the central bank’s growth and inflation projections of 6.9% and 4.6% for the current fiscal year. In separate surveys, the RBI found that consumer confidence in both urban and rural areas had turned pessimistic. “Higher proportions of respondents in the current survey round reported rising prices and inflation for both the current period and the year-ahead horizon,” the RBI said on rural responses. It reported similar trends in urban areas, where households’ assessment of the employment situation has also deteriorated.
J Studios/DigitalVision via Getty Images On Monday, I stuck my neck out with a prediction that the correction lows in the major market indexes were behind us. Stocks opened sharply lower yesterday after President Trump reiterated his threats to wipe out the Iranian civilization at 8 p.m. last night if his demands were not met to fully reopen the Strait of Hormuz. Yet investors bid up stocks throug...
J Studios/DigitalVision via Getty Images On Monday, I stuck my neck out with a prediction that the correction lows in the major market indexes were behind us. Stocks opened sharply lower yesterday after President Trump reiterated his threats to wipe out the Iranian civilization at 8 p.m. last night if his demands were not met to fully reopen the Strait of Hormuz. Yet investors bid up stocks throughout the day until the S&P 500 managed to turn green minutes before the closing bell. Unsurprisingly, the President announced after the close that he had agreed to a two-week ceasefire, which was orchestrated by the prime minister of Pakistan. Stocks bounce (Bloomberg) Evidently, this ceasefire includes Iran, the United States, and Israel, assuming Iran fully reopens the strait, which it appears they have agreed to do. As a result, oil prices plunged, with WTI falling some $18 to $94.50, while Brent is down more than $15 to $94. Gold and silver are surging, and S&P 500 futures are up nearly 3%. The dollar is giving back its gains, and Treasuries are rallying with yields falling, as investors begin to see an interest rate cut from the Federal Reserve back on the table for this year. It has paid to stay on the bullish side of the aisle during this conflict, but volatility is bound to continue in a world that is far less certain, which argues for maintaining cash in portfolios to be opportunistic. Capital goods orders (Briefing.com) In another sign of economic resilience, orders for durable goods declined 1.4% in February, but when we exclude the volatile transportation category, sales rose 0.8% and 6% over the past year. Most importantly, shipments of non-defense capital goods excluding aircraft, which is the measure used to calculate GDP, rose 0.9% in February. We are currently at an annualized run rate in the first quarter that is 5.3% above the fourth quarter and should lift the rate of economic growth. Businesses continue to spend at a healthy rate. Insider buying (inside...
Daniel Grizelj/DigitalVision via Getty Images Universal Music Group N.V. ( UMGNF ) investors are finally getting some good news , as Bill Ackman's Pershing Square has offered to merge the company into his fund and then relist UMG on the New York Stock Exchange in a deal that could value the company at $64 billion, far above the current price. However, a deeper look into the proposal shows that the...
Daniel Grizelj/DigitalVision via Getty Images Universal Music Group N.V. ( UMGNF ) investors are finally getting some good news , as Bill Ackman's Pershing Square has offered to merge the company into his fund and then relist UMG on the New York Stock Exchange in a deal that could value the company at $64 billion, far above the current price. However, a deeper look into the proposal shows that the $64 billion number isn't a guarantee, and my calculations show that the real offer reflects a value of €20.1 per share. With a lot of uncertainties and the lack of a tangible plan to change the fundamental trajectory, I encourage investors to sell their shares here. Ackman Going Full Circle With Takeover Bid In 2021, Bill Ackman attempted to purchase a significant minority stake in Universal Music Group by merging it into his SPAC, to no avail. Instead, his fund, Pershing Square, bought a stake in the company, which then became one of the fund's largest holdings and one of its worst investments over the past few years. Data by YCharts Yesterday, April 7th, Bill Ackman decided to go full circle, announcing an interesting proposal to acquire the company, sort of. In quite a complicated deal, Ackman is trying to change what he views as the primary reasons for the stock's underperformance, and spoiler, it doesn't have much to do with the actual business. Pershing Square wants to take UMG off the Amsterdam exchange and relist New UMG on the NYSE. They are offering existing UMG shareholders €5.05 and 0.77 shares in New UMG stock per share, which, assuming no change in the stock price, translates into a €20.1 per share offer in cash value. Pershing Argues Fundamentals Are Not The Reason For UMG's Stock Performance In the proposal , Pershing says that UMG's business results were strong since IPO, with revenues growing at an 11% CAGR and adjusted EBITDA growing 13% annually. They then provide a list of factors that caused the underperformance: Pershing Square UMG Proposal I tend to...
rarrarorro/iStock via Getty Images The two-week ceasefire announced by the US and Iran on Tuesday is welcome news, but deciding if the threat of war has truly passed will take time. The peace may be fragile, but markets are already cheering this morning. The true test will unfold over the coming weeks. Here are some of the indicators I’ll be watching for determining if the worst has passed. Let’s ...
rarrarorro/iStock via Getty Images The two-week ceasefire announced by the US and Iran on Tuesday is welcome news, but deciding if the threat of war has truly passed will take time. The peace may be fragile, but markets are already cheering this morning. The true test will unfold over the coming weeks. Here are some of the indicators I’ll be watching for determining if the worst has passed. Let’s start with the stock market. The S&P 500 Index has already been rallying off its recent low, and the recovery is likely to continue today. One of the many technical profiles of markets I’ll be monitoring is this variation of my estimate of overbought-oversold conditions for the S&P. As of yesterday’s close, hints of recovery have emerged in recent days. The performance of Treasury yields will be even more critical this week and beyond. The 10-year yield, for example, has pulled back from its recent run-up. The risk appetite’s recovery for the near term will rely in no small degree on the bond market remaining calm. The key variable is whether the expected rebound in war-related headline inflation stays modest and short-lived. Economic risk will come into sharper focus in the weeks ahead. The Atlanta Fed’s GDPNow model continues to downgrade the expected rebound in output for the first quarter. Yesterday’s nowcast was downgraded to a soft 1.3% for the upcoming Q1 report (due on Apr. 30). That still marks a recovery from Q4’s stall-speed 0.7% gain , but the current Q1 estimate suggests that the war’s effects will remain a headwind for an already struggling economy in Q2. Inflation will also remain a critical factor for market behavior in the weeks ahead. The concern is that repairing damaged energy infrastructure in the Middle East will take months, perhaps years in some cases, and so relief for headline measures of inflation will arrive slowly. The initial reaction of US consumers on the inflation outlook since the war started raises a warning flag. Median inflation expectat...
Airline Stocks Soar On Iran Ceasefire As IATA Sees "Positive" Tailwinds, But Warns Jet Fuel Crisis Will Persist Airline stocks are flying high in premarket trading in New York after the overnight ceasefire between the Trump administration and Tehran. The truce is a positive for the aviation industry, which has been locked in turbulence for six weeks , as surging jet fuel prices have crushed the ma...
Airline Stocks Soar On Iran Ceasefire As IATA Sees "Positive" Tailwinds, But Warns Jet Fuel Crisis Will Persist Airline stocks are flying high in premarket trading in New York after the overnight ceasefire between the Trump administration and Tehran. The truce is a positive for the aviation industry, which has been locked in turbulence for six weeks , as surging jet fuel prices have crushed the margins of major carriers, forcing ticket and baggage price hikes and triggering travel chaos across the Gulf region. "Even two weeks is a positive because we will see some flow of oil return," Willie Walsh, director general of the International Air Transport Association, told Bloomberg Television in an interview. Walsh pointed out that even with a ceasefire underway, jet fuel prices "will remain elevated for some time." "If crude has come down 16%, you like to think jet will come down by a similar figure, but it's still going to be a high price. That will mean higher ticket prices. It is inevitable," he warned. Walsh also cautioned that jet fuel supply shortage risks remain elevated, with Asia seen as the most exposed region, followed by Africa and Europe. JPMorgan outlined "demand destruction" and how the energy shock spreads in a note here . Even though WTI and Brent crude prices collapsed overnight, Walsh said normalization across the airline industry and energy markets will take time. Delta Air Lines warned earlier that it expects to incur more than $2 billion in fuel costs through June, but noted that it has yet to change its full-year profit forecast because the outlook remains too murky. Last week... Third-Order Effects Begin: U.S. Airlines Hike Bag Fees as Jet Fuel Prices Spike Malaysia Airlines' Nasaruddin Bakar warned that "even if the war stops, it's going to take many, many more months for the price to stabilize." Thai Airways CEO Chai Eamsiri pointed out, "This time is about the infrastructure that was destroyed. It will take some time to bring back all the supp...
SiMa.ai has secured an investment from Micron Technology ( MU ), strengthening its ability to scale production-ready, high-performance physical AI solutions for real-world intelligent systems, the company said on Wednesday. The investment deepens the companies' collaboration around tightly integrated compute and memory architectures designed to deliver exceptional performance-per-watt for edge app...
SiMa.ai has secured an investment from Micron Technology ( MU ), strengthening its ability to scale production-ready, high-performance physical AI solutions for real-world intelligent systems, the company said on Wednesday. The investment deepens the companies' collaboration around tightly integrated compute and memory architectures designed to deliver exceptional performance-per-watt for edge applications, including robotics, autonomous systems, and industrial automation, it added. SiMa.ai has integrated Micron's industry-leading LPDDR5X memory into its Modalix MLSoC platform, a combination delivering superior bandwidth efficiency and power optimization for robotics, autonomous vehicles, and smart industrial systems, to scale its physical AI offerings. The company's SoMs (System-on-Modules) featuring Micron memory will be available to customers starting Wednesday. MU +8.60% premarket to $410.06. Source: Press Release More on Micron Technology Micron: The Only Chip Stock I'm Buying Micron, Credo, Lumentum: 3 AI Strong Buys Micron Technology: Crowded Bet On A Cyclical High Is Micron's price drop a buying opportunity? SA analysts weigh in SA analyst upgrades/downgrades: MU, ORCL, SMCI, LTM
(RTTNews) - RPM International Inc. (RPM), a multinational holding company, on Wednesday announced key leadership changes within its consumer group, promoting Chief financial officer Don Harmeyer to group president. Further, Tom Schweiger was appointed as the unit CFO, to succeed
(RTTNews) - RPM International Inc. (RPM), a multinational holding company, on Wednesday announced key leadership changes within its consumer group, promoting Chief financial officer Don Harmeyer to group president. Further, Tom Schweiger was appointed as the unit CFO, to succeed
Sundry Photography FedEx Freight is hosting an Investor Day at the New York Stock Exchange on Wednesday ahead of the planned spinoff from FedEx Corporation ( FDX ). Members of the FedEx Freight executive leadership team, led by incoming CEO John Smith, will outline the company's position as the largest North American less-than-truckload carrier and unique value proposition, compelling financial mo...
Sundry Photography FedEx Freight is hosting an Investor Day at the New York Stock Exchange on Wednesday ahead of the planned spinoff from FedEx Corporation ( FDX ). Members of the FedEx Freight executive leadership team, led by incoming CEO John Smith, will outline the company's position as the largest North American less-than-truckload carrier and unique value proposition, compelling financial model, and strategy to unlock future profitable growth. At the event, the company will outline strategic priorities that include optimizing the LTL-focused operating model, offering a differentiated commercial strategy that offers customers the flexibility to choose between superior transit times or more economic alternatives, advancing technology capabilities, and financial value creation by driving free cash flow durability and maintaining a disciplined approach to capital allocation. "As the largest pure-play LTL carrier in North America, we are combining our market-leading network scale, published transit times, and reliability with a differentiated service model to meet the evolving needs of our customers. Built on a culture of safety above all with 40,000 team members across North America, FedEx Freight is moving forward from a position of strength and a renewed focus and flexibility to build on our competitive advantages, accelerate our growth trajectory, and unlock our full potential," highlighted Smith. In terms of guidance, FedEx Freight expects medium-term revenue growth of 4% to 6% CAGR, adjusted operating income growth of 10% to 12% CAGR, and free cash flow conversion of over $1B. FedEx Freight is expected to spin off from FedEx on June 1, subject to final approval from the FedEx ( FDX ) board and other customary conditions. FedEx Freight common stock is expected to be listed on the New York Stock Exchange under the ticker symbol FDXF. Shares of FedEx ( FDX ) were up 2.8% in premarket action. More on FedEx FedEx: Premium Mix And Network Optimization Supporting Hi...
SpaceX has confidentially filed to go public, seeking to raise up to $75 billion at what has now grown to an estimated $2 trillion-plus valuation. The company, which includes its flagship rocket building and space exploration business, its low-Earth orbit satellite internet operations, the artificial intelligence (AI) lab xAI, and social media company X (formerly Twitter), is one of the most antic...
SpaceX has confidentially filed to go public, seeking to raise up to $75 billion at what has now grown to an estimated $2 trillion-plus valuation. The company, which includes its flagship rocket building and space exploration business, its low-Earth orbit satellite internet operations, the artificial intelligence (AI) lab xAI, and social media company X (formerly Twitter), is one of the most anticipated initial public offerings (IPOs) ever. But investors can gain exposure to the company before it makes its public debut. Perhaps one of the best ways to buy into SpaceX before its IPO is by investing in EchoStar (NASDAQ: SATS) . The satellite communications company now finds most of its value tied to its future stake in SpaceX, which means its stock price moves in line with expectations for SpaceX more than its core business operations. Investors may be anxious to get in on SpaceX before its IPO , but they may be better off waiting to take direct ownership of the stock. Continue reading
Futures for the Dow Jones Industrial Average and other major stock indexes soared ahead of Wednesday's trading session after President Donald Trump suspended Iran attacks for two weeks while Tehran agreed to open the Strait of Hormuz.
Futures for the Dow Jones Industrial Average and other major stock indexes soared ahead of Wednesday's trading session after President Donald Trump suspended Iran attacks for two weeks while Tehran agreed to open the Strait of Hormuz.