U.S. Economic Growth Is Peaking And That Means Stocks Could Struggle This Year, Goldman Warns

As the economic benefits of massive fiscal stimulus and businesses reopening reach their peak in the coming weeks, Goldman Sachs analysts are warning that U.S. economic growth will slow, leading to “paltry” stock returns over the next year and an end to the market’s massive pandemic rally.

U.S. economic growth will peak within the next two months, Goldman analysts said in a Thursday morning note, forecasting that gross domestic product will grow by an annualized 10.5% rate in the second quarter, the strongest expansion since 1978 aside from the economy’s stark mid-pandemic rebound in the third quarter of last year.

Economic growth will then “slow modestly” in the third quarter and continue to decelerate over the next several quarters, the analysts predicted, adding that such deceleration is typically associated with weaker stock returns and higher market volatility.

In a sign that fiscal stimulus effects and economic activity are peaking, the ISM Manufacturing index, a monthly economic indicator measuring industrial activity, registered at 65 in March—above the threshold of 60 that Goldman says typically represents peak economic growth.

Coming off the worst quarter in history, the U.S. economy grew at its fastest pace ever in the third quarter as a nation battered by an unprecedented pandemic put itself back together. Michelle Girard, chief U.S. economist at NatWest Markets, Stephanie Kelton, professor of economics and public policy at Stony Brook University, and Michael Strain, director of economic policy studies at the American Enterprise Institute, join “Squawk Box” to discuss. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
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According to Goldman, the S&P 500 has historically fallen an average of 1% in the month after the ISM Manufacturing index registers more than 60, and in the subsequent 12 months, it’s gained a “paltry” 3%—significantly less than the 14% annualized return over the last 10 years.

Goldman expects the S&P will end the year at 4,300 points—implying just a 4% increase from Thursday’s close, lower than some other market forecasters who expect the index could soar to as high as 5,000 points by year’s end.

Crucial Quote

“Equities often struggle in the short term when a strong rate of economic growth begins to slow,” a group of Goldman strategists led by Ben Snider said Thursday, noting that during the last 40 years. “It is not a coincidence that ISM readings have rarely exceeded 60 during the last few decades; investors buying U.S equities at those times were buying stocks at around the same time as strong economic growth was peaking—and starting to decelerate.”

Surprising Fact

The most recent ISM reading is the highest since a level of 70 in December 1983—after which the S&P inched up just 0.2% in the following 12 months.

Key Background

Trillions of dollars in unprecedented fiscal stimulus during the pandemic have helped lift the stock market to new highs over the past year, and though President Joe Biden’s $2.3 trillion infrastructure plan could add even more fuel to the economy, Anu Gaggar, a senior investment analyst for Commonwealth Financial Network, said Thursday that “investors have been quick to recognize [that] much of the upside has already been priced.”

That’s evidenced by the growing divergence in performance between the broader market and growth stocks this year, Gaggar says, echoing the sentiment from Goldman analysts Thursday. The tech-heavy Nasdaq, which far outperformed the broader market by surging 44% last year, has climbed about 9% this year, underperforming the S&P and Dow Jones Industrial Average, which are up roughly 12% each.

Further Reading

S&P 500 Passes 4,000—And These Market Experts Think It Can Keep Climbing Higher. Here’s Why. (Forbes)

Dow Jumps 200 Points: Stocks Fend Off Third Day Of Losses Despite Biotechs, Netflix Falling (Forbes)

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com.

Source: U.S. Economic Growth Is Peaking And That Means Stocks Could Struggle This Year, Goldman Warns

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Key quotes

“Economists predict 10.5% GDP growth for the second quarter, the strongest quarterly growth rate since 1978.”

“Growth in the third and fourth quarters of this year will clock in at 7.5% and 6.5%, respectively. Growth is then seen slowing in each quarter of 2022 — by the fourth quarter Goldman is modeling a mere 1.5% GDP increase.”

“Although our economists expect U.S. GDP growth will remain both above trend and above consensus forecasts through the next few quarters, they believe the pace of growth will peak within the next 1-2 months as the tailwinds from fiscal stimulus and economic reopening reach their maximum impact and then begin to fade.”

FX implications

The US dollar index drops 0.10% to trade at 91.25, as of writing. The dollar gauge resumes its downside momentum after facing rejection just below 91.50 in the US last session.

Latest Forex News

Stocks Fall Again As Experts Worry About ‘Extremely Bullish’ Market Indicators

After closing at record highs last week, stocks are falling for the second day in a row as corporate earnings—which lifted the market to new highs during the pandemic—start to show signs of weakness, all while speculative pockets of investor mania continue to rage on.

Shortly after the open, the Dow Jones Industrial Average fell 147 points, or 0.4%, while the S&P 500 also slipped 0.4%, and the tech-heavy Nasdaq, which underperformed Monday, shed 0.3%.

Far outperforming any other stock in the S&P, shares of railroad company Kansas City Southern are soaring 15% after Canada National proposed to acquire the company in a $33.7 billion deal—topping Canadian Pacific’s $25 billion bid from last month and setting the stage for a potential bidding war.

Heading up the S&P’s losses, Marlboro parent Altria Group’s stock is slumping 6% after reports that Joe Biden’s administration (which has not commented on the matter) is considering a reduction in the amount of nicotine allowed in tobacco products.

On the earnings front, shares of IBM are climbing 2.5% after the software giant surpassed first-quarter expectations with revenue of $5.4 billion—bolstered by ongoing growth in its enterprise cloud business—and adjusted earnings of $2.2 billion.

Meanwhile, medical device company Abbott, which makes Covid-19 test kits, reported worse-than-expected revenue of $10.5 billion Tuesday morning as Covid-related sales fell nearly 10% quarter to quarter, sending shares down about 3%.

Reflecting ongoing uncertainty over the economic recovery, epicenter stocks—or those belonging to companies hard-hit by the pandemic—are also driving losses Tuesday, with chemicals firms Dupont De Nemours, cruise-liner Carnival Corp. and Delta Air Lines all falling about 2%.

Crucial Quote

“The reopening news is directionally positive, but the big problem is that many epicenter stocks have already seen their enterprise values return to pre-Covid levels, while some are well beyond where they stood in 2019,” Vital Knowledge Media Founder Adam Crisafulli said in a Tuesday morning note.

Tangent

In a break from tradition, the Bank of Japan revealed Tuesday that it opted out of buying exchange-traded funds despite weakness in Japanese stocks. Crisafulli says the move is “perhaps the most important piece of news today” because it signals the central bank is dialing back its economic support—at a time when central banks around the world, including the Federal Reserve, have revved up their accommodative policy to help the economy and usher in new stock-market highs. Japan’s Nikkei 225, the nation’s benchmark index, fell 2% Tuesday and is now down 4.5% from a February high.

Key Background

Boosted by massive fiscal stimulus, an accelerating vaccine rollout and falling unemployment, stocks have had a strong start to the year, with the S&P pulling off 23 new all-time highs in 2021, according to LPL Financial Chief Market Strategist Ryan Detrick. “Many of our favorite sentiment gauges are becoming extremely bullish, which could be a near-term contrarian warning,” Detrick says of indicators like sentiment, at a three-year high, and low cash allocations from portfolio managers increasingly piling into stocks.

Surprising Fact

The price of dogecoin is soaring Tuesday, climbing back near record territory from last week, as retail traders around the world stage a rally around cannabis holiday 4/20. The cryptocurrency, modeled after a meme and originally developed as a joke, has climbed eight-fold over the past month, nabbing a staggering $49 billion market capitalization.

Further Reading

S&P And Dow Score New Record Highs, For The Week: Health Care, Materials And Utilities Sectors Lead Gains (Forbes)

Peloton Shares Drop After It Resists Regulator Warnings About Treadmill Following Child’s Death  (Forbes)

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com.

Source: Stocks Fall Again As Experts Worry About ‘Extremely Bullish’ Market Indicators

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Kansas City Southern’s stock soars after Canadian National’s ‘superior’ bid valued at $33.7 bln

 

 

Crypto Market Erases $200 Billion In Market Value In 24 Hours; Regulator Warns Investors Could ‘Lose All Their Money’

After a more than 100% surge over the past month, the cryptocurrency market is taking a massive hit Monday as regulators and other experts sound the alarm on bitcoin’s booming rally, but not everyone’s convinced the bearishness is warranted.

Key Facts

As of 10:30 a.m. EST, the value of the cryptocurrency market has tanked to about $900 billion from a high of $1.1 trillion early Sunday morning, according to crypto data firm CoinMarketCap.

The world’s first and largest cryptocurrency, bitcoin, is behind much of the decline, falling 17% over the past 24 hours—wiping out about $125 billion in market value.

Other top tokens are also plunging, with ether, XRP and litecoin down 21%, 16% and 25%, respectively.

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“As with all high-risk, speculative investments, consumers should make sure they understand what they’re investing in,” the United Kingdom’s Financial Conduct Authority, which regulates financials in the country, said Monday, also issuing a stark warning: “If consumers invest in these types of product, they should be prepared to lose all their money.”

The price plunge started Sunday after a report by the United Kingdom’s Sunday Times shed light on the enforcement measures banks, including HSBC, are taking to bar transfers from cryptocurrency exchanges in the country.

Venture capitalist and longtime bitcoin supporter Tim Draper railed against the measures, tweeting early Monday that “banks don’t like bitcoin because it makes them less relevant” before issuing a bullish forecast that bitcoin prices will hit $250,000 by early 2023; bitcoin is currently trading at around $32,750.

Crucial Quote 

“Bitcoin often exhibits large upside swings that tend to be followed by corrections—this is normal behavior for a new technology in the early stage of its adoption curve,” Anatoly Crachilov, the cofounder and CEO of crypto investment manager Nickel Digital, said Monday, adding that the market is positioned for expansion as institutional adoption soars. “Only professional investors with a long-term view on the underlying technology should have exposure to this asset class. They also need high-risk tolerance levels and, importantly, to never lose sight of the forest for the trees.”

Chief Critic

Bank of America Securities Chief Investment Strategist Michael Hartnett warned that bitcoin looks like “the mother of all bubbles,” on Friday, noting that its roughly 1,000% surge since the beginning of 2019 has been fueled by “violent” inflation, akin to the short-lived surges of gold prices in the late 1970s and tech stocks in the late 1990s.

Surprising Fact

Before crashing 80% by the end of 2018, the price of bitcoin, which first launched in January 2009, climbed fifteenfold in 2017 amid a flood of heightened attention and surging mainstream adoption, as retail trading became easier through pioneering bitcoin platforms like brokerage Coinbase.

Key Background

The cryptocurrency market’s massive rally has been fueled in large part by inflation concerns and institutional adoption. Investors have been eyeing regulatory approval of a bitcoin exchange-traded fund, but JPMorgan warned Friday that such a development may actually hurt bitcoin prices in the short term as investors cash out of the Grayscale Bitcoin Trust, an SEC-approved bitcoin price-tracking fund that many have turned to in lieu of an ETF. 

Further Reading

As Bitcoin, Ethereum, Ripple’s XRP And Litecoin Lose Billions, Watchdog Issues Stark Crypto Price Warning (Forbes)

SEC Charges Ripple With Selling $1.3 Billion In Unregistered Securities, XRP Loses $2 Billion In Market Value (Forbes) Follow me on Twitter. Send me a secure tip

Jonathan Ponciano

Jonathan Ponciano

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com

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Business News

After a more than 100% surge over the past month, the cryptocurrency market is taking a massive hit Monday as regulators and other experts sound the alarm on bitcoin’s booming rally, but not everyone’s convinced the bearishness is warranted.”Bitcoin often exhibits large upside swings that tend to be followed by corrections–this is normal behavior for a new technology in the early stage of its adoption curve,” Anatoly Crachilov, the cofounder and CEO of crypto investment manager Nickel Digital, said Monday, adding that the market is positioned for expansion as institutional adoption soars.

“Only professional investors with a long-term view on the underlying technology should have exposure to this asset class. They also need high-risk tolerance levels and, importantly, to never lose sight of the forest for the trees.”Bank of America Securities Chief Investment Strategist Michael Hartnett warned that bitcoin looks like “the mother of all bubbles,” on Friday, noting that its roughly 1,000% surge since the beginning of 2019 has been fueled by “violent” inflation, akin to the short-lived surges of gold prices in the late 1970s and tech stocks in the late 1990s. Before crashing 80% by the end of 2018, the price of bitcoin, which first launched in January 2009, climbed 15-fold in 2017 amid a flood of heightened attention and surging mainstream adoption, as retail trading became easier through pioneering bitcoin platforms like brokerage Coinbase.

The cryptocurrency market’s massive rally has been fueled in large part by inflation concerns and institutional adoption. Investors have been eyeing regulatory approval of a bitcoin exchange-traded fund, but JPMorgan warned Friday that such a development may actually hurt bitcoin prices in the short term as investors cash out of the Grayscale Bitcoin Trust, an SEC-approved bitcoin price-tracking fund that investors have turned to in lieu of an ETF. As Bitcoin, Ethereum, Ripple’s XRP And Litecoin Lose Billions, Watchdog Issues Stark Crypto Price Warning (Forbes)SEC Charges Ripple With Selling $1.3 Billion In Unregistered Securities, XRP Loses $2 Billion In Market Value (Forbes) All data is taken from the source: http://forbes.com Article Link: https://www.forbes.com/sites/jonathan…#bitcoin#newsheadlines#cnnnewstoday#newstodaylocal#newstodayabc#newstodaybbc #

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Huawei Sells Honor Unit ‘To Ensure Its Own Survival,’ But Loses Smartphone Synergy

Huawei, the Chinese telecom giant once ranked as the world’s largest smartphone maker and increasingly squeezed by Washington, announced Tuesday that it would sell its budget handset brand Honor to a government-backed consortium in a bid for the unit’s survival.

Huawei has been struggling to overcome restrictions on crucial chip technologies by the U.S., which calls the company a national security threat. By breaking off, Honor can get smartphone supplies without Washington’s blockade, but will lose access to Huawei’s resources and may even face new U.S. restrictions in the longer term, analysts warn.

“This move has been made by Honor’s industry chain to ensure its own survival,” Huawei said in a statement. “Huawei’s consumer business has been under tremendous pressure as of late. This has been due to a persistent unavailability of technical elements needed for our mobile phone business.”

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Shenzhen Zhixin New Information Technology is set to buy all Honor assets to “help Honor’s channel sellers and suppliers make it through this difficult time,” according to the statement. The buyer comprises more than 30 “agents and dealers” of the Honor brand.

Government-run Shenzhen Smart City Technology Development Group founded the consortium. It counts local government-linked energy, healthcare and investment firms as members. Chinese sports, retail and entertainment conglomerate Suning.com Group, one of China’s largest private companies, is also on the list. MORE FOR YOUVietnamese Mega-Conglomerate Vingroup Launches South China Sea Tourism With New SubmarineTop iPhone Assembler Foxconn Expects To Move Further Away From ChinaVietnam’s Richest Man Sees Interim Earnings Drop 60% As His Conglomerate Retreats From Retail

Shenzhen Smart City Technology Development said in its own statement the investment is “market-driven” one aimed at saving Honor’s “industry chain,” including suppliers, sellers and consumers.

The sale will let Honor “get the ball rolling” on getting supplies, says Kiranjeet Kaur, a Singapore-based senior research manager at IDC’s Asia Pacific client devices group. But it will miss the “synergy” it had established behind the scenes with Huawei, she notes. The two had shared R&D and original design manufacturing. “I’m not sure how easy it’s going to be for Honor to detach from that,” Kaur says. “I’m not sure how Honor is going to differentiate in the market from Huawei.”

The consortium’s state influence could land Honor in trouble if it wants approval from the U.S., Kaur adds.

“The fact that there is no strategic investor behind the deal, but rather a consortium of players, many of which are related to the government, sheds light on some of the deal rationale,” says Alexander Sirakov, an independent Chinese financial technology analyst.

Huawei has hoped that a sale will give it an infusion of cash while protecting Honor itself from more U.S. sanctions, experts said last week when news first broke about a possible sale. Huawei’s billionaire founder and CEO, Ren Zhengfei, had said last year that U.S. sanctions would cause company revenue to drop by billions of dollars.

Last year, the U.S. Department of Commerce added Huawei to an entity list of companies that are barred from doing business with organization in the U.S. An order that took effect two months ago placed 38 Huawei affiliates to the list and restricts transactions where U.S. software or technology would help develop the Chinese company’s hardware.

U.S. President-elect Joe Biden is not expected to cancel action against Huawei at the start of his term next year as he focuses on domestic issues, analysts said last week, but he might not add sanctions.

Huawei’s statement does not disclose a selling price or mention the U.S. sanctions.

Honor was launched in 2013 as a budget brand to compete with Chinese rivals and sold throughout developing markets in Asia at an average price of $156. Honor has kept costs low and saved money by selling most of its phones online. Huawei would ship more than 70 million Honor phones annually. “We hope this new Honor company will embark on a new road of honor with its shareholders, partners, and employees,” the Huawei statement says.

Huawei was ranked No. 2 in the world and No. 1 in China in the third quarter by IDC. It had reached the top spot in the previous quarter for its first time.Follow me on Twitter

Ralph Jennings

Ralph Jennings

As a news reporter I have covered some of everything since 1988, from my alma mater U.C. Berkeley to the Great Hall of the People in Beijing where I followed Communist officials for the Japanese news agency Kyodo. Stationed in Taipei since 2006, I track Taiwanese companies and local economic trends that resonate offshore. At Reuters through 2010, I looked intensely at the island’s awkward relations with China. More recently, I’ve studied high-tech trends in greater China and expanded my overall news coverage to surrounding Asia.

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CGTN

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Chinese tech giant #Huawei has announced it’s selling its budget, youth-oriented smartphone brand Honor to another Chinese company. The move is seen as helping it ride out challenges posed by U.S. sanctions. #5G#China Subscribe to us on YouTube: https://goo.gl/lP12gA Download our APP on Apple Store (iOS): https://itunes.apple.com/us/app/cctvn… Download our APP on Google Play (Android): https://play.google.com/store/apps/de…

Wall Street Strategists Are Already Telling Clients What To Expect In 2021

And Wall Street strategists are starting to move on to 2021. In a note to clients published Thursday, Sean Darby, global equity strategist at Jefferies, unveiled his S&P 500 price target for 2021. And Darby expects stocks will continue going up next year.

“We expect the market to reach 3,750 by end of 2021,” Darby wrote, unveiling his year-ahead price target for the first time. On Thursday, the S&P 500 closed at 3,510, implying just under a 7% gain for the benchmark index through the end of next year.

Underpinning Darby’s positive outlook is an improved outlook for corporate earnings amid a strengthening economy and an accommodative Federal Reserve.

“All of our US macro-equity-bond indicators are positive or beginning to turn,” Darby writes.

S&P 500 earnings are finally beginning to reflect the better underlying health of the economy as the backlog of orders increases. Similarly, the Russell 3000 earnings are just turning at the same time as job openings are recovering.”

Darby adds that, “One key underwriter for the markets, under either candidate, has been the Fed with its intervention in both fixed income and credit markets. The influence of the Fed’s balance sheet should not be underestimated as the forward PE ratio has certainly tracked the ‘excess money’ in the economy.”

So while some may argue that the Fed is “out of ammo” after the unprecedented expansion of its credit facilities in the early part of this pandemic, the Fed is still a driving force behind flows in the market. On Thursday, Fed Chair Jerome Powell reiterated the central bank’s stance, saying at a press conference, “We are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible.”

And as Canaccord Genuity’s Tony Dwyer wrote in a note to clients this week, “Remember, a significant and sustainable period of economic retrenchment comes when there is a need for money to fund forward growth but very little access to it. The opposite is true today.”

Darby also expects the political situation to serve as a tailwind to investors. At least as far as market history is concerned.

As of Friday morning, the race for president had yet to be called. However, former Vice President Joe Biden’s odds of winning improved as he took the lead in the battleground state of Georgia over President Trump. Meanwhile, the prospect of a “blue wave” in Congress has been all but ruled out by investors.

In scenarios where a Democrat is in the White House but Republicans control at least one chamber of Congress, average returns for U.S. equities have been fantastic, with the S&P 500 rising an average of 33.9% during these periods since 1989.

Divided government under Democratic presidents has been great for the stock market over the last three decades. (Source: Jefferies)

As Darby writes, “Although we think the equity markets ‘churn’ until a result is determined, history suggests that periods of Democrat Gridlocked Congress tend to deliver positive returns.”

By Myles Udland, reporter and anchor for Yahoo Finance Live. Follow him at @MylesUdland

What to watch today

Economy

  • 8:30 a.m. ET: Change in Non-farm Payrolls, October (593,000 expected, 661,000 in September)
  • 8:30 a.m. ET: Unemployment Rate, October (7.7% expected, 7.9% in September)
  • 8:30 a.m. ET: Average Hourly Earnings month-over-month, October (0.2% expected, 0.1% in September)
  • 8:30 a.m. ET: Average Hourly Earnings year-over-year, September (4.6% expected, 4.7% in September)
  • 8:30 a.m. ET: Labor Force Participation Rate, October (61.5% expected, 61.4% in September)
  • 10:00 a.m. ET: Wholesale Inventories month-over-month, September final (-0.1% in prior print)

Earnings

Pre-market

  • Before market open: Viacom (VIAC) is expected to report adjusted earnings of 81 cents per share on revenue of $5.96 billion
  • 6:00 a.m. ET: Coty (COTY) is expected to report an adjusted loss of 20 cents per share on revenue of $1.14 billion
  • 6:30 a.m. ET: CVS Health Corp (CVS) is expected to report adjusted earnings of $1.33 per share on revenue of $66.66 billion
  • 7:00 a.m. ET: Marriott International (MAR) is expected to report an adjusted loss of 8 cents per share on revenue of $2.23 billion

Top News

US election fuels strong week of gains on global stock markets [Yahoo Finance UK]

Uber beats Q3 earnings expectations powered by growth in Eats business, Rides falls short [Yahoo Finance]

Petco retail chain says it’s filed confidentially for U.S. IPO [Bloomberg]

Tesla unveils ‘Tesla Tequila’ for $250, product sold-out on website [Reuters]

YAHOO FINANCE HIGHLIGHTS

How Trump’s legal woes will worsen once he leaves office

Connecticut would consider legalizing marijuana, says governor

These states suffer the worst unemployment as the pandemic recovery continues

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.

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CNBC Television

Peter Boockvar, chief investment officer at Bleakley Advisory Group, joins “Squawk Box” to discuss what trends he expects to see in the market as he looks ahead to 2021. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-n… Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBChttps://www.cnbc.com/select/best-cred…#CNBC#CNBCTV

Top Stocks To Buy Today As Markets Pace Towards Worst Week Since March

Markets are set to sink yet again today for the fifth time in six days. If the pace holds up today, this will also be the second consecutive monthly loss for the markets. While volatility is normal pre-election, investors are continuing to grapple with COVID surging to record numbers and resulting in new shutdowns and lockdown measures. Additionally, with zero sign of another stimulus package, fear is certainly rampant about a double dip recession. The Dow dropped 100 points or .38%, while the S&P dropped .41% and the Nasdaq NDAQ -0.8% declined .75%. 

Although yesterday’s news revealed strong economic data regarding US GDP growth and jobless claims, investors largely ignored that today. Apple AAPL -5.6% sharply declined after reporting a 16% decline in iPhone sales and failing to provide guidance for the upcoming quarter. Despite a big beat on revenue, Amazon AMZN -5.4% also declined. Twitter led the declines falling over 15% after reporting user growth that fell short of expectations. For investors looking to make sense of the markets, the deep learning algorithms at Q.ai have crunched the data to give you a set of Top Buys. Our Artificial Intelligence (“AI”) systems assessed each firm on parameters of Technicals, Growth, Low Volatility Momentum, and Quality Value to find the best long plays.

Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.

Broadridge Financial Solutions (BR)

Corporate services company Broadridge Financial Solutions BR -0.4% is our first Top Buy of the day. The company, which was founded in 2007, is a spin-off from Automatic Data Processing ADP -0.1%. Our AI systems rated Broadridge C in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed up 1.95% to $138.12 on volume of 560,940 vs its 10-day price average of $141.94 and its 22-day price average of $139.91, and is up 13.2% for the year.

Revenue grew by 1.52% in the last fiscal year and grew by 6.19% over the last three fiscal years, Operating Income grew by 0.88% in the last fiscal year and grew by 5.42% over the last three fiscal years, and EPS grew by 2.0% in the last fiscal year and grew by 13.17% over the last three fiscal years. Revenue was $4529.0M in the last fiscal year compared to $4329.9M three years ago, Operating Income was $624.9M in the last fiscal year compared to $598.0M three years ago, EPS was $3.95 in the last fiscal year compared to $3.56 three years ago, and ROE was 37.39% in the last year compared to 40.79% three years ago. Recommended For You

MORE FROM FORBESBroadridge Financial (BR)

Simple Moving Average of Broadridge Financial Solutions (BR)
Price of Broadridge Financial Solutions compared to its Simple Moving Average YCharts

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Amdocs (DOX)

Amdocs DOX +1.7% is our next Top Buy of the day. A leading software and services provider for communications and media companies, Amdocs is also the largest vendor by revenue in the monetization platforms segment by a wide margin. Our AI systems rated Amdocs C in Technicals, B in Growth, A in Low Volatility Momentum, and B in Quality Value.

The stock closed up 0.84% to $55.42 on volume of 732,226 vs its 10-day price average of $56.85 and its 22-day price average of $57.62, and is down 22.2% for the year. Revenue grew by 1.46% in the last fiscal year and grew by 7.22% over the last three fiscal years, Operating Income grew by 3.9% in the last fiscal year and grew by 14.43% over the last three fiscal years, and EPS grew by 3.5% in the last fiscal year and grew by 21.33% over the last three fiscal years.

Revenue was $4086.67M in the last fiscal year compared to $3867.16M three years ago, Operating Income was $569.75M in the last fiscal year compared to $517.33M three years ago, EPS was $3.47 in the last fiscal year compared to $2.96 three years ago, and ROE was 13.63% in the last year compared to 12.43% three years ago. Forward 12M Revenue is expected to grow by 1.82% over the next 12 months, and the stock is trading with a Forward 12M P/E of 11.82.MORE FROM FORBESAmdocs (DOX)

Simple Moving Average of Amdocs (DOX)
Price of Amdocs compared to its Simple Moving Average YCharts

Fastenal Co (FAST)

Industrial supplies company Fastenal FAST +0.3% is our third Top Buy of the day. Fastenal is the largest fastener distributor in North America. Our AI systems rated Fastenal C in Technicals, B in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed up 0.42% to $43.12 on volume of 2,291,171 vs its 10-day price average of $44.02 and its 22-day price average of $44.72, and is up 18.72% for the year. Revenue grew by 4.36% in the last fiscal year and grew by 26.78% over the last three fiscal years, Operating Income grew by 5.57% in the last fiscal year and grew by 26.57% over the last three fiscal years, and EPS grew by 5.82% in the last fiscal year and grew by 46.01% over the last three fiscal years.

Revenue was $5333.7M in the last fiscal year compared to $4390.5M three years ago, Operating Income was $1056.0M in the last fiscal year compared to $880.8M three years ago, EPS was $1.38 in the last fiscal year compared to $1.0 three years ago, and ROE was 31.84% in the last year compared to 28.71% three years ago. Forward 12M Revenue is expected to grow by 0.89% over the next 12 months, and the stock is trading with a Forward 12M P/E of 28.7.MORE FROM FORBESFastenal (FAST)

Simple Moving Average of Fastenal Co (FAST)
Price of Fastenal Co compared to its Simple Moving Average YCharts

Lockheed Martin Corp (LMT)

Major aerospace and defense contractor Lockheed Martin LMT -0.7% is our fourth Top Buy of the day. As of 2014, Lockheed Martin is the world’s largest defense contractor based on revenue, with half of that revenue coming from the US Department of Defense. Our AI systems rated Lockheed Martin B in Technicals, B in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed up 0.45% to $352.44 on volume of 1,545,758 vs its 10-day price average of $368.71 and its 22-day price average of $377.48, and is down 10.08% for the year.

Revenue grew by 7.41% in the last fiscal year and grew by 28.59% over the last three fiscal years, Operating Income grew by 11.3% in the last fiscal year and grew by 53.19% over the last three fiscal years, and EPS grew by 5.74% in the last fiscal year and grew by 243.8% over the last three fiscal years. Revenue was $59812.0M in the last fiscal year compared to $49960.0M three years ago, Operating Income was $7698.0M in the last fiscal year compared to $5593.0M three years ago, EPS was $21.95 in the last fiscal year compared to $6.75 three years ago, and ROE was 269.7% in the last year compared to 455.42% three years ago. Forward 12M Revenue is expected to grow by 3.07% over the next 12 months, and the stock is trading with a Forward 12M P/E of 13.68.MORE FROM FORBESLockheed Martin (LMT)

Simple Moving Average of Lockheed Martin Corp (LMT)
Price of Lockheed Martin Corp compared to its Simple Moving Average YCharts

Take-Two Interactive Software (TTWO)

Our final Top Buy of the day is Take-Two Interactive Software TTWO -4.8%. Take-Two is a leading video game publisher most known for owning video game companies Rockstar Games and 2k. Take-Two is best known for video game franchises such as Grand Theft Auto, NBA2k, and Red Dead. Our AI systems rated Take-Two D in Technicals, A in Growth, B in Low Volatility Momentum, and A in Quality Value. The stock closed down 0.99% to $162.77 on volume of 1,257,438 vs its 10-day price average of $165.0 and its 22-day price average of $164.76, and is up 33.33% for the year.

Revenue grew by 9.42% in the last fiscal year and grew by 88.51% over the last three fiscal years, Operating Income grew by 11.69% in the last fiscal year and grew by 213.83% over the last three fiscal years, and EPS grew by 10.07% in the last fiscal year and grew by 153.42% over the last three fiscal years. Revenue was $3088.97M in the last fiscal year compared to $1792.89M three years ago, Operating Income was $425.35M in the last fiscal year compared to $151.38M three years ago, EPS was $3.54 in the last fiscal year compared to $1.54 three years ago, and ROE was 17.66% in the last year compared to 13.92% three years ago. The stock is also trading with a Forward 12M P/E of 46.84.MORE FROM FORBESTake-Two Interactive Software (TTWO)

Simple Moving Average of Take-Two Interactive Software (TTWO)
Price of Take-Two Interactive Software compared to its Simple Moving Average YCharts

Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open. Follow me on Twitter or LinkedIn. Check out my website

Source: S&P Global Market Intelligence

By: Q.ai – Investing Reimagined

Q.ai - Investing Reimagined

Q.ai, a Forbes Company, formerly known as Quantalytics and Quantamize, uses advanced forms of quantitative techniques and artificial intelligence to generate investment recommendations across all asset classes. When it comes to money, no one should have to settle. We make investing less intimidating, more accessible and a lot of fun for everyone. That’s investing, reimagined.

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Stock Moe

89.2K subscribers// This is the best penny stocks to buy now 2020 November edition.Join our private community over at Patreon https://www.patreon.com/stockmoe to talk stocks that could grow your portfolio to new levels. I will have exclusive materials as we move forward and my own stock purchases and a brand new high growth portfolio that I am sharing with everyone. If you want to have a one on one person to help you, then this is a must for any serious investor. We just got our private Discord up and running as well. SIGN UP FOR WEBULL: (It’s only a $100 deposit and you get 3 free stocks worth $8 a piece to $1600 from this referral link…I recently signed up…love it and I also get a free stock) https://www.webull.com/activity?invit… Sign up for Robinhood here for a free stock: https://join.robinhood.com/brittnm610 NEW STOCK MOE AMAZON STORE UP AND RUNNING: https://www.amazon.com/shop/stockmoe This is all about getting the best penny stocks to buy now 2020 for November. It is a good time to look at some big penny stocks that are moving and see if there is a way to make a quick profit off of them or if there is a long term play there. There are many penny stocks out there, but most end up at zero eventually . Finding the best penny stocks to buy now is not an easy task. The first of the best penny stocks to buy now is one that I feel has some upward pressure that gives us a chance to make a few dollars. I am not sure how it will go, but this best penny stock opportunity helps us moving forward. It is interesting to see all of this. In looking at the top penny stocks to buy now, there are a few opportunities out there to invest in. The penny stocks 2020 list I made in this video helps to identity these penny stocks. There are a few out there that can work our way, but we need to be careful. These are very volatile and should be handled with care. These are some good penny stocks to watch for 2020 and 2021. These are the best penny stocks to buy now 2020 and not the only ones though. There are a few other opportunities out there for us to consider. These top stocks can go bad very quickly if the market turns south. I still see these as an option for stocks to buy now in my mind. These are great penny stocks for beginners that will get them in with a chance at profit. These are high risk and should be traded knowing that. If you are looking for cheap penny stocks, these best penny stocks to buy now fit the bill. There are many penny stocks to look at and I am sure there are probably many more that could outperform these penny stocks, but it gives you an idea of how I look for a penny stock to invest in. These are the best stocks to buy now and possibly in the future if you are looking for extreme risk and possible massive profits. There is always a chance of losing everything when buying one of the best penny stocks to buy now. These penny stocks 2020 are what I think will have the most action. In summation, the best penny stocks to buy 2020 November edition is all about giving you the opportunity to make massive amounts of money or loss massive amounts of money investing in the top penny stocks to buy now. If you are looking for penny stocks to watch or are investing in penny stocks for the long term, then be aware of the dangers. These can be the best stocks to buy now or the top stocks to buy now if they end up turning their business around. What stocks to buy now is a good question to always ask yourself. These best penny stocks to buy now help to answer that. ARK had bought NNDM stock price and added it…are they still buying NNDM? NNDM should definitely be in the penny stocks to watch list, if you have one. 🙂 Stock Moe’s content is for entertainment only. In no event will Stock Moe be liable for any loss or damage including, without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of Stock Moe content on YouTube, Patreon, and Discord. Stock Moe is no longer a licensed broker/financial planner. All financial decisions made by the viewer should be done after talking with a licensed professional. Everything on the Stock Moe channel is for entertainment only. Stock Moe’s video content may change over time, or become outdated or invalid. Stock Moe reserves the right to change his opinions and entertainment content at any time. I also have affiliate links in this description that I can earn money off of to help support the channel. Thank you from Stock Moe. #stocks#pennystocks#pennystock

These Are The 5 Brands With The Most Complaints For Their Online Service, According To Profeco

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

  • Whirlpool.
  • Walmart.
  • Liverpool.

“You already exhibited us!” as the meme would say. Undoubtedly, online purchases have increased in 2020. The circumstances presented by the COVID-19 pandemic have prompted consumers to purchase their products via the web.

In this context, the Federal Consumer Prosecutor’s Office (Profeco) registered 227 complaints from users who asked to make valid the guarantees of purchases they made through online platforms.

5 out of 10 companies in Mexico are doubling their growth on the Internet, and 2 out of 10 register growths greater than 300% in the volume of online sales, according to a study carried out by the Mexican Association of Online Sales (AMVO).

But, despite this growth, many of them have had problems meeting the needs of their customers in this channel and although 9 out of 10 complaints were adjusted, Profeco released the five brands with the greatest dissatisfaction by consumers , among which are:

  1. Whirlpool, with 27.
  2. Walmart, with 17.
  3. Liverpool, with 9.
  4. Samsung Electronics, with 7.
  5. Best Buy, with 6.

All of the annoyances were related to purchasing faulty or non-working products online. Faced with this situation, Profeco explained that it is necessary to verify the information offered by the sellers, as well as the product policy and if it received the order form to verify the characteristics of the merchandise.

If you do not get the product that the online store offered you or the documents mentioned above, you will be entitled to a replacement, a refund of the money or a bonus of no less than 20% of what you paid. On the other hand, if it is broken or has flaws, you should check that the warranty protects the item from damage.

By: Entrepreneur en Español

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Citi Pledges $1 Billion To Narrow The Racial Wealth Gap, Confront Wealth Inequality

On Wednesday, Citigroup, the nation’s fourth largest bank by asset size, pledged more than $1 billion over the next three years to address the widening racial wealth gap and increase the economic mobility of Black Americans.

“The pandemic is a health crisis with severe economic implications and it’s led to an unveiling of the systemic racism that has existed in this country for far too long,” says Citi’s CFO Mark Mason, who’s part of a small cadre of prominent Black executives on Wall Street.

Citi’s announcement follows that of Bank of America’s in June pledging $1 billion  to advance racial equality and economic opportunity over a four-year span.

The coronavirus pandemic and subsequent demonstrations against the killings of Black people have placed a searing spotlight on existing racial disparities in the U.S., bringing them to the fore of the business world’s conscious.

“It has been a catalyst for many companies to really try and get after this in a substantive way, and for Citi, it’s certainly caused us to take a step back,” Mason says.

“The killings of George Floyd in Minnesota, Ahmaud Arbery in Georgia and Breonna Taylor in Kentucky are reminders of the dangers Black Americans like me face in living our daily lives.” Mark Mason, Citi CFO

In the wake of Floyd’s death in May, Mason penned a candid and poignant letter to the bank’s corporate blog, wherein he detailed Floyd’s last minutes alive and acknowledged that the latest deaths of Black citizens in police custody were “reminders of the dangers Black Americans like me face in living our daily lives.”

The letter was widely circulated among business leaders, including Citi’s outgoing CEO Michael Corbat, who encouraged employees in an internal memo to do their part to create a “truly equal and just society.”

As protesters rallied across the country, reigniting a national conversation about race, Corbat challenged his executive reports to conceive a strategic initiative that would address key factors of economic racial injustice and deliver meaningful impact to the Black community.

Those executives swiftly assembled a team of business leaders throughout the firm to devise what would later form Citi’s $1 billion commitment to help advance racial equity and allay the financial drag Black people experience in the U.S.

The funds will be directed toward expanding access to banking and credit building in communities of color, investing more heavily into Black-owned businesses, promoting the growth of Black home ownership and strengthening Citi’s antiracism policies and practices.

Nearly half of the three-year investment will be meted out to boost homeownership for people of color, which has historically been one of the primary drivers of wealth creation in the U.S., and support affordable and workforce housing projects by minority developers. Just under $400 million will go toward procurement opportunities for Black-owned business suppliers while $50 million will go toward additional impact investing capital for Black entrepreneurs.

Citi is allocating $100 million to support the growth and revenue generation of Minority Depository Institutions, which play a critical role in fostering the economic viability of the communities they serve, by supplying them with $50 million in growth capital. The bank’s philanthropic arm, Citi Foundation, will receive the remaining $100 million to provide economic opportunities for young people in underserved communities.

Citi is also scrutinizing some of its own longstanding policies. The bank says it will develop standards for inclusive software design that eliminate bias, expand Citi’s capital market activities with minority-owned broker dealers and increase the representation of people of color on Citi accounts and within their leadership teams.

Mason says that weeding out a company’s underlying and often deeply rooted biases requires a thorough probe and heavy introspection. “It’s not until you take a hard look at those things—the screening processes that exist, the age-old criteria that’s been designed—and are challenged to see who they’re inadvertently leaving out or boxing out, that you can then change them in a way that helps to eliminate those obstacles.” 

The bank’s financial commitment comes on the heels of a new Citi-sanctioned report that puts a numerical figure behind the economic cost of Black inequality in the U.S. Published on Monday, the analysis found that nearly $5 trillion could be added to U.S. GDP over the next five years if four key racial gaps for Black people—wages, education, housing and investment—were closed today, a .4% annual increase to U.S. GDP growth. Closing those key racial gaps 20 years ago could have yielded a $16 trillion gain to the U.S. economy, according to the report.

“Addressing racism and closing the racial wealth gap is the most critical challenge we face in creating a fair and inclusive society,” Corbat, Citi’s CEO, said in a press release announcing the bank’s pledge. “We are bringing together all the capabilities of our institution…like never before to combat the impact of racism in our economy.”

Citi will establish a council of senior leaders from across the company to assess its performance and hold businesses accountable to the bank’s racial equity commitment. Follow me on Twitter. Send me a secure tip.

Ruth Umoh

 Ruth Umoh

I’m a reporter covering the various aspects of diversity and inclusion in business and society at large. Previously, I was a reporter at CNBC, where I focused on leadership and strategic management. I’ve also dabbled in video journalism, working as a breaking news digital producer for New York Daily News, followed by a yearlong stint as a producer at Rolling Stone. My work has been featured on New York Daily News, Yahoo Finance and Time Out. I’m a proud alumna of Columbia University Graduate School of Journalism, receiving honors for my investigative thesis on the alarming number of physicians dying by suicide. Tweet me @ruthumohnews or send tips to rumoh@forbes.com.

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Bank of America has announced that it is committing $1 billion to fight racial and economic inequality, pointing to recent civil unrest over racism in the country as its impetus for the major move.

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The Covid Vaccine Will Require Billions of Tiny Glass Vials & This Italian Billionaire Family Is Making Them

At the height of Italy’s lockdown in April factories were shuttered across the country. But in Piombino Dese, a small town about20 miles outside of Venice, the hulking glass-cutting machines at the Stevanato Group kept whirring along, spitting out millions of ampoules and syringes. Hundreds of employees donned face masks to work around the clock in three daily shifts, seven days a week – making everything from insulin pen cartridges to miniature glass barrelsand — most pressingly — millions of tiny sterile vials, each one smaller than a single fluid ounce, that one day will house doses of a Covid-19 vaccine.

“Every Saturday and Sunday, even on Easter, I went to work alongside my employees to show that we were in the trenches as well,” says Franco Stevanato, the 46-year-old CEO of the group and grandson of its founder, Giovanni.

Vaccines, like most injectable drugs, need to be packaged in sterile glass. Glass is essentially impermeable to corrupting gases like oxygen while even high-grade plastic lets some air inside. Making these vials was a big business even before Covid-19 appeared in January. Last year, the global pharmaceutical industry purchased some 12 billion vials. The Stevanato Group, a 71-year-old family-owned firm, provided more than 2 billion of those (The company is also the world’s largest manufacturer of cartridges for insulin pens). A Covid-19 vaccine, which likely will have to be administered in two separate injections, will require billions of additional vials. Stevanato expects the pandemic to drive up demand for its glass vials by 20% over the next two years.

“We proactively started to supply our customers with everything they wanted [to fight] Covid-19,” says Franco. “There was no magic strategy. We tried to move quickly and took enormous risks by anticipating some investments, because it was the right time to do it.”

Other than making the actual glass, which they buy from big outfits like Corning and Schott, Stevanato does it all. They design the vials. They make the machines that craft and sterilize the containers. They work with medical regulators in 150 different markets around the world. And then many of their customers use Stevanato-made machines to package the drugs before shipping them to pharmacies and hospitals.

Those machines are a key differentiator. In 2007, when French pharma giant Sanofi needed a supply of sterile syringes that could quickly hit the market, Stevanato developed a ready-to-use syringe that didn’t require any additional sterilization. Stevanato built its own machines to wash and sterilize the syringes and patented the whole process, creating a product line that is now one of the company’s top earners.

“They really value quality and they really value customers and connecting the customer needs to their products,” says Ron Verkleeren, who manages the life sciences division at Corning and has worked with Stevanato since 2011. “That really sets them apart from the competition.”

It’s a solid, if unspectacular, business. In 2019, Stevanato netted $47 million on $675 million sales. Forbes estimates that Sergio Stevanato, the 77-year old company president and son of the founder, owns a 68% stake worth $1.8 billion. Sergio’s sons, Franco (the CEO) and Marco, the 47-year-old vice chairman, run the place now. Each own 16%, worth more than $400 million apiece.

Big changes are afoot. In June, the group raised $59 million in a private debt placement, the first time the company had ever sought outside funding. They plan to use the money to develop wearable medical devices and machines to automatically assemble them. And the family has plans to take the company public within the next three years.

“The banks we’re working with want us to go public earlier, but I want to do it when I feel sure, regardless of Covid-19,” says Franco.


Stevanato has been ramping up for a Covid-19 vaccine for months. The firm hired more than 580 new workers in the first six months of 2020. In late June, Stevanato signed a deal with Norway’s Coalition for Epidemic Preparedness and Innovations (CEPI), a Gates Foundation-backed group that is assisting with scalingnine different Covid-19 vaccine projects — including efforts by Boston-based biotech Moderna and Oxford University — to supply 100 million borosilicate glass vials for up to 2 billion doses of vaccine.

Borosilicate glass can withstand much higher temperatures than other types of glass and is more resistant to external chemicals, making it the glass of choice for sensitive medicines like vaccines. Stevanato is also supplying several other significant vaccine efforts it can’t currently disclose, along with 30 more in early stages of development. Altogether, that’s more than a fifthof the 176 vaccines in the works around the world.

“We talked with every glass producer and the Stevanato Group was the only group that still had uncommitted glass [vial production] capacity,” says Jim Robinson, deputy chair of CEPI’s scientific advisory committee. “They had the prize that everyone wanted.”

Vaccines face much tougher regulatory barriers than most other medicines and need to be stored in sterile glass vials and syringes, says Verkleeren of Corning. “A lot of drugs degrade in the presence of oxygen. It would take millions of years for one molecule of oxygen to permeate glass, and it would take minutes for it to go through plastic,” he says. “Quality and sterility are really, really important, because if it’s not sterile, or there’s a quality problem, and you’re injecting something into the body, it can be very, very serious.”


The Stevanato Group was founded on the outskirts of Venice, a city with a long tradition of glassblowing, in 1949 to make bottles for wine and perfume. The firm, originally called Soffieria Stella, grew as the postwar Italian economy boomed. By 1959, they needed more space so they relocated to Piombino Dese, an industrial town situated on the confluence of five rivers.

As food producers began to switch to plastic in the 1960s, Giovanni Stevanato took a risk and doubled down on glass, developing a machine capable of rapidly producing containers from glass tubing at scale. The 3BS machine, named after Stevanato and his three co-inventors — Bormioli, Bottaro and Bardelli — enabled the firm to double production and target a new market: the growing pharmaceutical industry. In the early 1970s, the family shut down Soffieria Stella entirely, cementing its pivot to medical glass packaging.

“The first decades were very difficult,” says Franco, particularly because the family shunned outside investment. But they made headway. “By making our own machines, we could produce 50% to 60% more than our competitors. Because my father reinvested all our profits into the company, we could advance our technology faster than the others. [They] would buy their technology in Germany, but we could double their production with the same number of employees.”

Franco and Marco entered the family business in 1998 in their mid-twenties, two years after the death of Giovanni. The first order of business: rebuffing a series of acquisition offers from larger competitors. The second order: Expanding the company abroad. In 2008, the family opened its first overseas plant — in Monterrey, Mexico — to target the North American market. Stevanato now has a network of 12 factories on four continents. In 2016 the group entered the U.S. for the first time, via its acquisition of German plastic packaging firm Balda for $112 million, which has two facilities in southern California.

One advantage of providing complex, specially designed packages is that they are patented and included in the regulatory approval process for new drugs, meaning that pharmaceutical firms must use the company’s packaging for the duration of the product’s lifespan. According to Aaron DeGagne, healthcare analyst at Morningstar, this effectively locks in business for decades, because drug producers often continue to use the same packaging—even after the medicine’s patent expires and it becomes a generic drug.

Spinning a sleek, Stevanato-made insulin pen between his fingers during an interview via video, Franco spells out a future in which his family firm expands into more complex products. “Now we have [insulin] pens, and tomorrow the devices will be more self-medicating, analyzing…and much more evolved,” he explains. For example, a cancer patient may be able to self-administer drug infusions at home. “This is the big challenge we want to dive into over the next 10 to 20 years.”

Giacomo Tognini

Giacomo Tognini

I cover billionaires and their wealth for Forbes. In the past, I’ve covered everything from oil & gas for Bloomberg News to the 2014 Indonesian presidential election for the Jakarta Globe. I’m a graduate of Columbia Journalism School and UC Berkeley, and my work has also appeared in the Houston Chronicle, the Calgary Herald, and more…

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Four Years of Digital Transformation In Four Weeks: UK Lockdown Puts Pressure On Brands To Digitally Deliver

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Nearly a third (32%) of consumers would switch providers if a brand’s website is unavailable for more than 24 hours

A study released today reveals the scale of omni-channel pressure brands now faced as a result of the Covid-19 pandemic, as consumers flock to apps and websites to as the priority destination to transact with brands.

The UK has experienced a huge leap in use of online services thanks to lockdown, with the public appearing to have less concern for the availability of a brand’s physical location. Research by Sungard Availability Services (Sungard AS) uncovers a “window of availability” that UK businesses now have before consumer loyalty changes:

  • If a brand’s website is down for 24 hours – 32 percent of consumers would switch provider
  • If a brand’s app is down for 24 hours – 28 percent of consumers would switch provider
  • If a physical store is closed for 24 hours – 20 percent of consumers would switch provider

The results by industry paint an interesting picture of the availability timeframes brands are expected to adhere to:

  • For online retailers, excluding grocery retailers – 23 percent of consumers would switch provider if they could not access online services for 12 hours, rising to over a third (34 percent) after 24 hours
  • For financial services and entertainment streaming platforms – 21 percent of consumers would switch provider after 12 hours, rising to 33 percent after 24 hours
  • In the case of online grocery shopping – 20 percent would switch provider after 12 hours, rising to one third 33 percent after 24 hours

The findings also highlight that as digital reliance increases, so will consumer expectations towards availability in the future. Over the coming two years, a third (33 percent) of consumers expect online financial services to always be available, rising to 35 percent for streaming services.

“UK consumers have become reliant on the constant availability of online services, and lockdown has only served to heighten this,” comments Chris Huggett, SVP, EMEA at Sungard AS. “What used to be a choice between physical and digital has now firmly accelerated into digital environments across various industries. As online worlds continue to outpace bricks and mortar as the face of businesses, ensuring constant availability and clear communications on downtime will be key for brands to build trust and loyalty.

Source: Global Banking & Finance

financecurrent3

Whether you’re a bitcoin trader or new to the market, you can buy, sell, and trade cryptocurrency without identity confirmations in EUR , USD, and other major currencies. We service clients globally, including Australia, the United States, Singapore, Canada, New Zealand, and Europe.

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