Photo: VCG China’s steel industry is facing a critical test of cost, data and compliance under the EU’s new carbon tariff regime. The Carbon Border Adjustment Mechanism (CBAM), which fully entered into force on Jan. 1 following a two-year transitional phase, requires importers of steel, aluminum, cement, fertilizers, electricity and hydrogen to purchase certificates to cover the carbon emissions e...
Photo: VCG China’s steel industry is facing a critical test of cost, data and compliance under the EU’s new carbon tariff regime. The Carbon Border Adjustment Mechanism (CBAM), which fully entered into force on Jan. 1 following a two-year transitional phase, requires importers of steel, aluminum, cement, fertilizers, electricity and hydrogen to purchase certificates to cover the carbon emissions embedded in their products. The mechanism is designed to force importers to pay the difference between the carbon price in the country of production and that in the EU, aiming to prevent “carbon leakage,” such as when companies based in the EU could move carbon-intensive production abroad to take advantage of lax standards.
Investors’ newfound affinity for companies that benefit most from an accelerating economy is in for a tough test as the latest earnings season kicks off. Money has been flowing from the technology giants that powered the past three years of gains into shares of banks, consumer-product makers and materials producers. The bet is that these sectors are set to outperform as the US economy picks up ste...
Investors’ newfound affinity for companies that benefit most from an accelerating economy is in for a tough test as the latest earnings season kicks off. Money has been flowing from the technology giants that powered the past three years of gains into shares of banks, consumer-product makers and materials producers. The bet is that these sectors are set to outperform as the US economy picks up steam in 2026. The problem for any jittery investors is that Big Tech is still poised to be the dominant contributor to fourth-quarter profit growth among S&P 500 Index firms. Tech firms in the index are estimated to show year-over-year earnings growth of 20%, while non-tech earnings expansion is slated to decelerate from 9% to just 1%, according to data from Bank of America Corp . That will put a huge onus on forecasts from the likes of Caterpillar Inc. , Procter & Gamble Co. and JPMorgan Chase & Co. Investors will need Corporate America to essentially reiterate what much of Wall Street is predicting: the American economy is slated for a burst in the first half, if not the full year. “Guidance will be an important tell,” said Michael Kantrowitz , chief investment strategist at Piper Sandler & Co., whose favorite industries are transports, housing-related, and manufacturing. “This is the first start to the year that we’ve got broad stimulus tailwinds, which are necessary to create a sustainable broadening of earnings.” The stock market, famously, reflects expectations for the near future, and going by trading since the start of November, investors expect the corporate chieftains to be optimistic about growth prospects. Small caps and so-called value stocks have been in favor, traditionally signs of confidence in the US economy. The Russell 2000 Index has outperformed the S&P 500 for seven straight days, a streak last exceeded in January 2019. Those trades are likely to be tested, going by Bloomberg Intelligence’s forecasts for earnings in the coming year. Analysts led by Wendy...
Wildfires last January destroyed communities around Los Angeles. Homeowners say recovery has been slowed by fights with insurers to get their claims paid. (Image credit: Josh Edelson)
Wildfires last January destroyed communities around Los Angeles. Homeowners say recovery has been slowed by fights with insurers to get their claims paid. (Image credit: Josh Edelson)
In early December, I set a fairly conservative 2026 price target of $130,000 for Bitcoin (CRYPTO: BTC) . Then, this month, I upped that target to $150,000 or higher before year-end. The earlier figure substantially underweighted the impact of a value-generating process that I expect to accelerate significantly in 2026, because if it doesn't, Bitcoin might experience one of its very few existential...
In early December, I set a fairly conservative 2026 price target of $130,000 for Bitcoin (CRYPTO: BTC) . Then, this month, I upped that target to $150,000 or higher before year-end. The earlier figure substantially underweighted the impact of a value-generating process that I expect to accelerate significantly in 2026, because if it doesn't, Bitcoin might experience one of its very few existential risks. Here's how and why my thinking evolved. Image source: Getty Images. Continue reading