Activism is the No. 1 way to create superior returns, hedge fund manager Jamie Dinan says

York Capital Management founder Jamie Dinan said the best way to create superior return is through activism. “In order to create alpha right now, activism is number one in my book, and I think that’s true in any market,” the hedge fund manager said at the Project Punch Card Conference in New York City on Wednesday. While “a big fan” of activism, Dinan said the work he has done is “behind the scenes,” which contrasted notable investors like Bill Ackman and Carl Icahn who frequently call on compan


York Capital Management founder Jamie Dinan said the best way to create superior return is through activism.
“In order to create alpha right now, activism is number one in my book, and I think that’s true in any market,” the hedge fund manager said at the Project Punch Card Conference in New York City on Wednesday.
While “a big fan” of activism, Dinan said the work he has done is “behind the scenes,” which contrasted notable investors like Bill Ackman and Carl Icahn who frequently call on compan
Activism is the No. 1 way to create superior returns, hedge fund manager Jamie Dinan says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: yun li
Keywords: news, cnbc, companies, superior, hedge, companies, market, york, way, investors, public, manager, returns, create, activism, fund, dinan, management, jamie


Activism is the No. 1 way to create superior returns, hedge fund manager Jamie Dinan says

York Capital Management founder Jamie Dinan said the best way to create superior return is through activism.

“In order to create alpha right now, activism is number one in my book, and I think that’s true in any market,” the hedge fund manager said at the Project Punch Card Conference in New York City on Wednesday.

While “a big fan” of activism, Dinan said the work he has done is “behind the scenes,” which contrasted notable investors like Bill Ackman and Carl Icahn who frequently call on companies for changes publicly.

“We’d meet with the CFO, but we won’t go public. We don’t want to be a disrupter because we don’t want to embarrass anyone,” Dinan said.

Activists often invest in what they believe are underperforming companies and then advocate for change. They usually purchase substantial amounts of shares of a public company in an attempt to obtain seats on the board and change how it operates. Such proposals often range from mixing up operational strategy to firing and replacing CEOs and board members.

Alpha comes from “constructive activism,” Dinan said. “When a company needs a wake-up call and there’s a blue print for how to create shareholder value. Every firm has a mandate.”

It has become more difficult for managers to create alpha in an environment of better market efficiency, so activist investors believe they could create superior performance by reshaping how companies operate.

York Capital has approximately $20 billion in assets under management.


Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: yun li
Keywords: news, cnbc, companies, superior, hedge, companies, market, york, way, investors, public, manager, returns, create, activism, fund, dinan, management, jamie


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Mystery billionaire returns auctioned Grease jacket to Olivia Newton-John

BEVERLY HILLS, CALIFORNIA – OCTOBER 29: Olivia Newton-John attends the VIP reception for upcoming “Property of Olivia Newton-John Auction Event at Julien’s Auctions on October 29, 2019 in Beverly Hills, California. The buyer of the leather jacket worn by Olivia Newton-John in the movie “Grease” has returned it to the actress after winning it at auction with a $243,000 bid. He bought the jacket at auction last month but almost immediately gifted it back to the actress who played “Sandy” in the sm


BEVERLY HILLS, CALIFORNIA – OCTOBER 29: Olivia Newton-John attends the VIP reception for upcoming “Property of Olivia Newton-John Auction Event at Julien’s Auctions on October 29, 2019 in Beverly Hills, California.
The buyer of the leather jacket worn by Olivia Newton-John in the movie “Grease” has returned it to the actress after winning it at auction with a $243,000 bid.
He bought the jacket at auction last month but almost immediately gifted it back to the actress who played “Sandy” in the sm
Mystery billionaire returns auctioned Grease jacket to Olivia Newton-John Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: vicky mckeever
Keywords: news, cnbc, companies, beverly, billionaire, video, returned, auction, buyer, hills, returns, mystery, grease, auctioned, cancer, jacket, newtonjohn, olivia


Mystery billionaire returns auctioned Grease jacket to Olivia Newton-John

BEVERLY HILLS, CALIFORNIA – OCTOBER 29: Olivia Newton-John attends the VIP reception for upcoming “Property of Olivia Newton-John Auction Event at Julien’s Auctions on October 29, 2019 in Beverly Hills, California.

The buyer of the leather jacket worn by Olivia Newton-John in the movie “Grease” has returned it to the actress after winning it at auction with a $243,000 bid. The money will remain donated to the actress’s cancer center.

The billionaire wished to remain anonymous but was confirmed to be a physician and media tech entrepreneur by Julien’s Auctions, which organized the original auction.

He bought the jacket at auction last month but almost immediately gifted it back to the actress who played “Sandy” in the smash hit film. It will now be put on permanent display at the Olivia Newton-John Wellness and Research Center in Melbourne, Australia.

“The odds of beating a recurring cancer using the newest emergent therapies is 1,000 fold greater than someone appearing out of the blue and buying your most famous and cherished icon and returning it to you,” said the buyer when presenting Newton with the jacket in a video, in which his face was blurred out.

The buyer said the jacket deserved to be returned to its “rightful owner” and “not sit a in billionaire’s closet for country-club bragging rights.”

“Godspeed for a quick recovery, should you ever need medical advice or support from a trusted doctor I will be there,” he said to Newton-John, who recently spoke about battling stage four breast cancer, having been diagnosed with the disease for the third time.

Newton-John, 71, who was first diagnosed in 1992 and opened her treatment center in 2012, said in the video she was “blown away” by the buyer’s generosity.

She auctioned off her iconic outfit from 1978 hit musical film Grease at an auction in Beverly Hills in November.

The black leggings, which Newton-John famously had to be sown into during filming, were bought by the founder of shapewear brand Spanx, Sara Blakely, for $162,000.

The entire outfit raised more than $400,000 at auction. Newton-John sold more than 500 personal items and memorabilia at the two-day event.


Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: vicky mckeever
Keywords: news, cnbc, companies, beverly, billionaire, video, returned, auction, buyer, hills, returns, mystery, grease, auctioned, cancer, jacket, newtonjohn, olivia


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Here are the biggest analyst calls of the day: Virgin Galactic, Macy’s, Chevron & more

Citi said in its downgrade of Chevron that it was “worried” about signs of “anemic returns” and “problematic project execution.” The 14-month underperformance of energy equities has been acute: global IOCs have lagged global equities by 20%, while for US E&P and Services, it has been over 50%. Within this mayhem, CVX has emerged as a relative safe haven, benefiting from balance sheet strength and clear capital allocation. But we think that safe-haven status might now be overplayed. 2019 has seen


Citi said in its downgrade of Chevron that it was “worried” about signs of “anemic returns” and “problematic project execution.”
The 14-month underperformance of energy equities has been acute: global IOCs have lagged global equities by 20%, while for US E&P and Services, it has been over 50%.
Within this mayhem, CVX has emerged as a relative safe haven, benefiting from balance sheet strength and clear capital allocation.
But we think that safe-haven status might now be overplayed.
2019 has seen
Here are the biggest analyst calls of the day: Virgin Galactic, Macy’s, Chevron & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: michael bloom
Keywords: news, cnbc, companies, calls, worried, roe, chevron, virgin, think, macys, galactic, global, signs, biggest, returns, underperformance, equities, status, day, analyst, strength


Here are the biggest analyst calls of the day: Virgin Galactic, Macy's, Chevron & more

Citi said in its downgrade of Chevron that it was “worried” about signs of “anemic returns” and “problematic project execution.”

The 14-month underperformance of energy equities has been acute: global IOCs have lagged global equities by 20%, while for US E&P and Services, it has been over 50%. Within this mayhem, CVX has emerged as a relative safe haven, benefiting from balance sheet strength and clear capital allocation. But we think that safe-haven status might now be overplayed. 2019 has seen CVX’s returns (CROCI and ROE) fall as much as most IOC peers; 2019E ROE of 8% says that more action is needed.


Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: michael bloom
Keywords: news, cnbc, companies, calls, worried, roe, chevron, virgin, think, macys, galactic, global, signs, biggest, returns, underperformance, equities, status, day, analyst, strength


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Here are the biggest analyst calls of the day: Virgin Galactic, Macy’s, Chevron & more

Citi said in its downgrade of Chevron that it was “worried” about signs of “anemic returns” and “problematic project execution.” The 14-month underperformance of energy equities has been acute: global IOCs have lagged global equities by 20%, while for US E&P and Services, it has been over 50%. Within this mayhem, CVX has emerged as a relative safe haven, benefiting from balance sheet strength and clear capital allocation. But we think that safe-haven status might now be overplayed. 2019 has seen


Citi said in its downgrade of Chevron that it was “worried” about signs of “anemic returns” and “problematic project execution.”
The 14-month underperformance of energy equities has been acute: global IOCs have lagged global equities by 20%, while for US E&P and Services, it has been over 50%.
Within this mayhem, CVX has emerged as a relative safe haven, benefiting from balance sheet strength and clear capital allocation.
But we think that safe-haven status might now be overplayed.
2019 has seen
Here are the biggest analyst calls of the day: Virgin Galactic, Macy’s, Chevron & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: michael bloom
Keywords: news, cnbc, companies, calls, worried, roe, chevron, virgin, think, macys, galactic, global, signs, biggest, returns, underperformance, equities, status, day, analyst, strength


Here are the biggest analyst calls of the day: Virgin Galactic, Macy's, Chevron & more

Citi said in its downgrade of Chevron that it was “worried” about signs of “anemic returns” and “problematic project execution.”

The 14-month underperformance of energy equities has been acute: global IOCs have lagged global equities by 20%, while for US E&P and Services, it has been over 50%. Within this mayhem, CVX has emerged as a relative safe haven, benefiting from balance sheet strength and clear capital allocation. But we think that safe-haven status might now be overplayed. 2019 has seen CVX’s returns (CROCI and ROE) fall as much as most IOC peers; 2019E ROE of 8% says that more action is needed.


Company: cnbc, Activity: cnbc, Date: 2019-12-09  Authors: michael bloom
Keywords: news, cnbc, companies, calls, worried, roe, chevron, virgin, think, macys, galactic, global, signs, biggest, returns, underperformance, equities, status, day, analyst, strength


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Buy a Monet instead of a Treasury? Art has shown long-term returns that rival bonds

Astronomical auction prices may have defined the art market in recent years, but new research shows that over the long-term the value of art has steadily climbed, delivering returns relatively in-line with bonds. Impressionist art averaged 5.0%, while the art market as a whole returned 5.3% annually. Chesnot | Getty ImagesIn 2018 the art market hit $67.4 billion, according to estimates from UBS, which was the second highest on record. “Periods of falling and/or low real rates have coincided with


Astronomical auction prices may have defined the art market in recent years, but new research shows that over the long-term the value of art has steadily climbed, delivering returns relatively in-line with bonds.
Impressionist art averaged 5.0%, while the art market as a whole returned 5.3% annually.
Chesnot | Getty ImagesIn 2018 the art market hit $67.4 billion, according to estimates from UBS, which was the second highest on record.
“Periods of falling and/or low real rates have coincided with
Buy a Monet instead of a Treasury? Art has shown long-term returns that rival bonds Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: pippa stevens
Keywords: news, cnbc, companies, art, longterm, returns, market, return, investors, returned, prices, bonds, monet, shown, rival, buy, citi, firm, works, instead, treasury


Buy a Monet instead of a Treasury? Art has shown long-term returns that rival bonds

(This story is part of the Weekend Brief edition of the Evening Brief newsletter. To sign up for CNBC’s Evening Brief, click here.) Astronomical auction prices may have defined the art market in recent years, but new research shows that over the long-term the value of art has steadily climbed, delivering returns relatively in-line with bonds. Since 1985 contemporary art has been the best bet for investors of the asset class, returning an average of 7.5% per year, Citi said in a report using data from Masterworks.io. Impressionist art averaged 5.0%, while the art market as a whole returned 5.3% annually. Art can be a wildly volatile market — among other things it’s subject to the whim of consumer tastes — but Citi said that it’s becoming an increasingly popular way for investors to diversify their portfolio since art’s return isn’t correlated with any other major asset class. In other words, its performance is independent of strength or weakness in various areas of the market. This is “art’s most attractive investment quality over the long run,” Citi said.

Visitors look at a painting entitled ‘Salvator Mundi’ by School of Leonardo da Vinci during a press visit of the exhibition “Leonardo da Vinci” at the Louvre museum on October 22, 2019 in Paris, France. The painting sold at auction by Christie’s for over $450 million on November 15, 2017. Chesnot | Getty Images

In 2018 the art market hit $67.4 billion, according to estimates from UBS, which was the second highest on record. In May one of Monet’s haystacks went for $110.7 million, and Picasso’s “Young Girl with a Flower Basket” and a Modigliani painting of a reclining nude woman were among the works to top $100 million at auction in 2018. Perhaps most famously, Leonardo da Vinci’s “Salvator Mundi” sold for a record $450.3 million in 2017. While these numbers are attention grabbing, there’s also a robust market at much lower prices. Citi found that works under $50,000 actually offer “the best performing price point from both a return and a risk per unit of return basis,” adding that “there is no disadvantage from a return perspective to having a small purse.”

Art offers similar returns to fixed income

Using data from Masterworks.io, which tracks auction sales from Sotheby’s, Christie’s and Phillips, Citi found that between 1985 and 2018 the art market as a whole has returned an average of 5.3% annually. Contemporary art has been the top performer, returning an average of 7.4% annually, while art from the Impressionist period has returned 5%. The return on art most closely matches that of fixed income. In the same time frame investment grade bonds from developed countries returned 6.5%, while global high yield bonds returned 8.1%, Citi said. Developed-market equities and private equity returns 9.8% and 13.9%, respectively. Citi said that the relative outperformance of post-war and contemporary art is likely because it currently “commands the largest share of annual transaction volume,” and “appears to attract the most demand from new entrants to the market.” The firm also found that art typically does better when interest rates are low since the opportunity cost — or the higher that investors might otherwise be getting from fixed income — goes down. “While the relationship has been far from perfect, art prices have tended to move in line with broad shifts in real interest rates,” the firm said. “Periods of falling and/or low real rates have coincided with rising art prices.” After crunching the numbers from 13,000 works of art sold since July of 2016, the firm found a few key takeaways, including that holding art for longer typically lowers the risk of future returns, and that higher returns are typically given to more liquid artists. “Art has proven to be an excellent store of wealth over all time periods, easily exceeding inflation,” the firm said. Overall, the firm said that art has been “an excellent store of wealth over all time periods” since it easily exceeds inflation.

Traction with technology

A lack of transparency around sales has been a longstanding hurdle for the art market, but Citi said that could be about to change thanks to technological advancements like blockchain. “Digital technologies such as blockchain could help automate vital processes, including establishing authenticity and performing valuations, as well as enabling sharebased investment in individual works and collections,” the firm said. “More transparent pricing, more readily available data on sales, greater market liquidity, and lower transaction costs could result. If realized, such efficiencies would make the art market more attractive for collectors and investors alike.” This is especially important as baby boomers prepare to pass an estimated $68 trillion to their children in the United States alone. Millennials and Generation X care more about how their money is being used, Citi said, so blockchain technology could be an important way for users trace and set up protocols for their donations, for example.

“With the potential for technology to enhance the world of art over the coming years, we believe that art’s existing appeal to collectors and investors could increase further,” Citi said.

Returns, but not without risk


Company: cnbc, Activity: cnbc, Date: 2019-12-07  Authors: pippa stevens
Keywords: news, cnbc, companies, art, longterm, returns, market, return, investors, returned, prices, bonds, monet, shown, rival, buy, citi, firm, works, instead, treasury


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If I have student loans to pay off, should I also save for retirement? Here’s what experts say

If you went to college, there’s a good chance you still have student loans to tackle. It takes Americans with student debt an average of 21 years to completely pay off their education, and the average student loan payment is $393 a month. Since everyone’s financial circumstances differ, the paths people take toward eliminating student debt while also saving for retirement are highly personal. How much should you be saving for retirement if you have student loans? Then total up how much your mont


If you went to college, there’s a good chance you still have student loans to tackle.
It takes Americans with student debt an average of 21 years to completely pay off their education, and the average student loan payment is $393 a month.
Since everyone’s financial circumstances differ, the paths people take toward eliminating student debt while also saving for retirement are highly personal.
How much should you be saving for retirement if you have student loans?
Then total up how much your mont
If I have student loans to pay off, should I also save for retirement? Here’s what experts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: anna hecht
Keywords: news, cnbc, companies, retirement, small, student, saving, interest, start, pay, returns, debt, financial, say, save, heres, loans, experts


If I have student loans to pay off, should I also save for retirement? Here's what experts say

If you went to college, there’s a good chance you still have student loans to tackle. It takes Americans with student debt an average of 21 years to completely pay off their education, and the average student loan payment is $393 a month. With that kind of weight on your wallet, you might wonder whether you should save for retirement while paying back loans. According to financial experts, the answer is typically ‘yes.’ “If you are able to allocate even a small amount of funds towards retirement, you should still do so even while you are paying down student loans,” Jordan Sowhangar, a Pennsylvania-based certified financial planner, tells CNBC Make It. Since everyone’s financial circumstances differ, the paths people take toward eliminating student debt while also saving for retirement are highly personal. But to help you take a smart approach, here’s what financial experts say about how to tackle both simultaneously.

How much should you be saving for retirement if you have student loans?

The truth is, the answer to this question is going to be different for everyone. Still, experts say there are a few key things to consider when deciding how to allocate your money. First, take a close look at how much you’re making and how much your student loan payments cost each month. Then total up how much your monthly expenses are, including student loans, and subtract that from your total income. The difference will give you an idea of how much is leftover to be put toward retirement. “The minimum payment should always be met on the current student loan debt to avoid penalties that could negatively impact your credit score,” Sowhangar says. “After that has been satisfied, whatever percentage you are able to contribute towards an employer-sponsored retirement plan to take advantage of the maximum employer match should then be saved.”

You should also take into account how much interest you’re paying on your student loans. If sky-high rates are making it difficult to keep up, you may want to consider putting more toward your debt even before contributing up to your company match in savings. “Are there higher interest rate student loans over 6% to 7%? If so, it may be wise to put a greater percentage of the additional income toward those loans first,” Sowhanger says.

Contribute what you can now

Even if you can’t meet the company match on your 401(k), contributing something — even a small monthly investment toward your retirement — is better than nothing. In the U.S., an estimated 56% of Americans between 18 and 29 put off saving for retirement because they still owe on their student loans. As a result, they’re missing out on compound interest that could help their savings grow over time. With compound interest, not only do you earn returns on your initial investment, but you also earn returns on those returns at the end of each compounding period. If you start investing early and let your money sit, it will grow exponentially. “No matter what your debt situation looks like, you need to always put something away for retirement. The power of compounding is a much-needed tailwind to any investment portfolio,” says Malik S. Lee, certified financial planner and founder of Felton and Peel Wealth Management.

Guido Mieth | DigitalVision | Getty Images

An 18-year-old who invests $100 per month and earns a 6% rate of return would accumulate $307,000 by 65. But if they wait until 40 to start saving, they’d only have $70,000 by 65, according data from Charles Schwab. Even if you can only contribute a small portion of your paycheck to retirement, it’s better to start early and invest small amounts than to put away nothing at all. “Yes, it’s going to be tough. But if you can make enough sacrifices early on, then you won’t need to make these sacrifices later on in life,” says Ryan Marshall, a New Jersey-based certified financial planner.

How can you save for later in life more efficiently?


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: anna hecht
Keywords: news, cnbc, companies, retirement, small, student, saving, interest, start, pay, returns, debt, financial, say, save, heres, loans, experts


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In 2019, almost every investment worked

The S&P 500 is up more than 25% and counting. Treasurys, which tend to fall when risk assets rally, also gained in 2019. For stock investors specifically, it was hard to guess wrong. A look at the S&P 500 companies’ internal performance shows only 64 names, or 12%, are down this year. All 11 S&P 500 sectors are ending the year with positive returns.


The S&P 500 is up more than 25% and counting.
Treasurys, which tend to fall when risk assets rally, also gained in 2019.
For stock investors specifically, it was hard to guess wrong.
A look at the S&P 500 companies’ internal performance shows only 64 names, or 12%, are down this year.
All 11 S&P 500 sectors are ending the year with positive returns.
In 2019, almost every investment worked Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: yun li
Keywords: news, cnbc, companies, sectors, investment, 500, rates, investors, 2019, stock, sheet, markets, corporate, worked, returns


In 2019, almost every investment worked

Traders work on the floor of the New York Stock Exchange Lucas Jackson | Reuters

This year is shaping up to be one of the best ever for investors of all stripes with nearly every single asset class on track to finish 2019 in the green. From stocks to government debt to corporate bonds to commodities, no matter where you went, you reaped a profit this year. The S&P 500 is up more than 25% and counting. Treasurys, which tend to fall when risk assets rally, also gained in 2019. Oil, gold and corporate bonds all scored double-digit returns. For stock investors specifically, it was hard to guess wrong. A look at the S&P 500 companies’ internal performance shows only 64 names, or 12%, are down this year. All 11 S&P 500 sectors are ending the year with positive returns. Tech is the biggest winner this year with a 41.5% gain. Communication services, industrials, financials, real estate, consumer sectors all skyrocketed more than 20% this year.

‘Buy everything’

It might seem a little too good to be true as the markets have been grappling with a handful of risks that are almost unprecedented — a costly trade war with China and a bid to impeach the president. But thanks to the Federal Reserve for coming to the rescue. The central bank pulled a 180, cutting rates three straight times this year. The Fed has also been pumping billions into the financial system after the mid-September tumult in very short-term lending markets. “We’ve gotten three rate cuts as we know and a dramatic rise in the size of their balance sheet in a very short period of time,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. The markets “see an expansion of the Fed’s balance sheet to the extent it’s grown and the only response is, it’s QE. Buy everything.” The stimulus has lowered interest rates, pushing all assets up at the same time.

Will the markets hold up?


Company: cnbc, Activity: cnbc, Date: 2019-12-02  Authors: yun li
Keywords: news, cnbc, companies, sectors, investment, 500, rates, investors, 2019, stock, sheet, markets, corporate, worked, returns


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China’s factory activity unexpectedly returns to growth in November

Employees work on the production line of a robot vacuum cleaner factory of Matsutek in Shenzhen, China August 9, 2019. Factory activity in China unexpectedly returned to growth in November for the first time in seven months, as domestic demand picked up on Beijing’s accelerated stimulus measures to steady growth. More U.S. tariffs are looming within weeks and Beijing and Washington are still haggling over the first phase of a trade deal. With China’s economic growth cooling to near 30-year lows


Employees work on the production line of a robot vacuum cleaner factory of Matsutek in Shenzhen, China August 9, 2019.
Factory activity in China unexpectedly returned to growth in November for the first time in seven months, as domestic demand picked up on Beijing’s accelerated stimulus measures to steady growth.
More U.S. tariffs are looming within weeks and Beijing and Washington are still haggling over the first phase of a trade deal.
With China’s economic growth cooling to near 30-year lows
China’s factory activity unexpectedly returns to growth in November Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-30
Keywords: news, cnbc, companies, returns, activity, economic, chinas, factory, trade, phase, growth, beijing, stimulus, unexpectedly, urged, pmi


China's factory activity unexpectedly returns to growth in November

Employees work on the production line of a robot vacuum cleaner factory of Matsutek in Shenzhen, China August 9, 2019.

Factory activity in China unexpectedly returned to growth in November for the first time in seven months, as domestic demand picked up on Beijing’s accelerated stimulus measures to steady growth.

But gains were slight, and export demand remained sluggish. More U.S. tariffs are looming within weeks and Beijing and Washington are still haggling over the first phase of a trade deal.

With China’s economic growth cooling to near 30-year lows and industrial profits shrinking, speculation is mounting that Beijing needs to roll out stimulus more quickly and more aggressively, even if it risks adding to a pile of debt.

The Purchasing Managers’ Index (PMI) bounced back to 50.2 in November, its highest since March, China’s National Bureau of Statistics (NBS) said on Saturday, above the 50-point mark that separates growth from contraction on a monthly basis.

The result compared with 49.3 in October. A Reuters poll showed analysts expected the November PMI to come in at 49.5.

The official factory gauge pointed to an improvement in China’s vast manufacturing sector last month. Total new orders bounced back to expansionary territory with the sub-index rising to 51.3, the highest level seen since April.

That indicates domestic consumption firmed up after Beijing repeatedly urged local governments to kick stimulus up a gear to meet economic goals before year-end. Factory output also rose to 52.6 in November, marking the strongest pace since March.

“In the short term, we may have already passed the low point where the economy hit the bottom,” Zhang Deli, a macro analyst with Lianxun Securities, wrote in a note.

Beijing has front-loaded 1 trillion yuan ($142 billion) of a 2020 local government special bonds quota to this year and has urged that they be issued and used as early as possible to boost infrastructure investment. Some analysts say that could be a sign that the government is worried about downward economic pressure.

Zhang attributed to the better-than-expected November PMI to a government push on infrastructure investment, less property market control, and a de-escalation in U.S.-China trade tension in October, when both sides said they had substantially reached a “Phase 1” agreement and the United States delayed a tariff increase scheduled to take place on October 15.


Company: cnbc, Activity: cnbc, Date: 2019-11-30
Keywords: news, cnbc, companies, returns, activity, economic, chinas, factory, trade, phase, growth, beijing, stimulus, unexpectedly, urged, pmi


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A simple investment strategy is offering its best return in 26 years

Investors who took a simple portfolio split between bonds and equities in 2019 have enjoyed the best returns in more than a quarter of a century, according to Pictet Asset Management. Luca Paolini, chief strategist at Pictet Asset Management, told CNBC’s Squawkbox Europe Friday that a simple 50/50 equity-bond portfolio has done remarkably well in 2019. As late as January, Goldman Sachs was predicting that the Fed would raise interest rates four times this year. Instead, and to the delight of the


Investors who took a simple portfolio split between bonds and equities in 2019 have enjoyed the best returns in more than a quarter of a century, according to Pictet Asset Management.
Luca Paolini, chief strategist at Pictet Asset Management, told CNBC’s Squawkbox Europe Friday that a simple 50/50 equity-bond portfolio has done remarkably well in 2019.
As late as January, Goldman Sachs was predicting that the Fed would raise interest rates four times this year.
Instead, and to the delight of the
A simple investment strategy is offering its best return in 26 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: david reid
Keywords: news, cnbc, companies, split, investment, trade, simple, returns, rates, times, bonds, trick, war, best, fed, strategy, offering, return


A simple investment strategy is offering its best return in 26 years

Investors who took a simple portfolio split between bonds and equities in 2019 have enjoyed the best returns in more than a quarter of a century, according to Pictet Asset Management.

Market sentiment at the beginning of this year was shaky, with several analysts betting that rising U.S. interest rates and a withdrawal of central bank stimulus would negatively affect assets.

But the S&P 500 stock index in 2019 has offered gains exceeding 25% so far this year, while at the same time bonds have offered solid returns as trade war fears saw investors seeking safety.

Luca Paolini, chief strategist at Pictet Asset Management, told CNBC’s Squawkbox Europe Friday that a simple 50/50 equity-bond portfolio has done remarkably well in 2019.

“I think what is surprising though is that if you are a global investor and you put 50% in equities and 50% bonds this year, you made 16% — it’s the best year since ’93,” he said.

Paolini said a year ago all the talk was that a global recession, low business confidence and trade war negativity would press up against a Federal Reserve that needed to take the heat out of a peaking U.S. economy.

As late as January, Goldman Sachs was predicting that the Fed would raise interest rates four times this year. Instead, and to the delight of the White House, the central bank actually cut rates three times, offering a big boost to markets.

“Nobody expected the Fed to cut three times. Everybody expected the Fed to hike rates. It as a massive change in the monetary policy,” said Paolini, who warned that the Fed is going to be unable to repeat the trick in 2020.

“We are left with not much upside, apart from a potential recovery in growth,” he warned.

Paolini said that 2019’s 50-50 equity-bond strategy is a trick unlikely to be repeated soon, saying Pictet’s latest analysis shows a negative return for the split over a five-year outlook.


Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: david reid
Keywords: news, cnbc, companies, split, investment, trade, simple, returns, rates, times, bonds, trick, war, best, fed, strategy, offering, return


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The direct-to-consumer strategy is making a run at Amazon’s throne

As the shopping holiday gets into full swing, direct-to-consumer (DTC) brands are making a run at Amazon’s ecommerce dominance, thanks in part to an ecosystem of companies powering big brands like Warby Parker, Allbirds and Glossier. It’s creating a flywheel that handles every step of the ecommerce process from shipping to returns and even one-day delivery. There’s Stripe, which handles payments for DTC brands like Glossier and Goodeggs. “As you start to get more mega companies, consumers just g


As the shopping holiday gets into full swing, direct-to-consumer (DTC) brands are making a run at Amazon’s ecommerce dominance, thanks in part to an ecosystem of companies powering big brands like Warby Parker, Allbirds and Glossier.
It’s creating a flywheel that handles every step of the ecommerce process from shipping to returns and even one-day delivery.
There’s Stripe, which handles payments for DTC brands like Glossier and Goodeggs.
“As you start to get more mega companies, consumers just g
The direct-to-consumer strategy is making a run at Amazon’s throne Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: deirdre bosa laura batchelor, deirdre bosa, laura batchelor
Keywords: news, cnbc, companies, throne, strategy, brands, dtc, fluhr, ecommerce, amazons, companies, returns, run, amazon, making, consumers, disney, nike, directtoconsumer


The direct-to-consumer strategy is making a run at Amazon's throne

As the shopping holiday gets into full swing, direct-to-consumer (DTC) brands are making a run at Amazon’s ecommerce dominance, thanks in part to an ecosystem of companies powering big brands like Warby Parker, Allbirds and Glossier.

It’s creating a flywheel that handles every step of the ecommerce process from shipping to returns and even one-day delivery.

It’s made up of some of Silicon Valley’s hottest startups, up-and-coming names and established companies.

There’s Stripe, which handles payments for DTC brands like Glossier and Goodeggs. Affirm provides credit to consumers to buy bigger ticket items like furniture from Wayfair and Peloton bikes. Returnly helps Everlane and Supergoop manage product returns; Shipbop helps with warehousing and Darkstore is trying to take aim at Amazon with same-day shipping.

Established names are also part of the system, like Shopify for ecommerce platforms and Facebook’s Instagram, which has emerged as a powerful tool for DTC marketing.

“The next frontier in the battle with Amazon is on the back-end,” said David Bell, co-founder of Idea Farm Ventures and a former Wharton professor. “This is where companies like Affirm, Shipbot, and Happy Returns have a critical role to play. When customers can spread payments, get product quickly and return without much friction (and even a bit of fun), the brand wins.”

Jeff Fluhr, cofounder and general partner at Craft Ventures said Amazon has set a high bar for consumers’ expectations.

“Until recently it’s been really hard to compete,” Fluhr said. “But that’s starting to change.”

It could be particularly appealing to brands that are wary of giving up sensitive data to Amazon, which itself could become a competitor. Amazon’s private label 206 Collective sneakers have made headlines for looking strikingly similar to Allbirds’ iconic wool sneakers at half the price.

Another advantage of controlling the process instead of using Amazon’s one-stop service, Fulfillment by Amazon, is that companies can better maintain their brand strength by offering greater personalization and exercising more control over quality.

“Consumers like to buy from companies and brands that align with their own ethics and values,” Fluhr said. “As you start to get more mega companies, consumers just get more skeptical and concerned about how their data is being used.”

And it’s not just DTC start-ups. Earlier this month, Nike severed its relationship with Amazon. It’s now working with Shopify and Darkstore to deliver shoes, avoiding the “gray market” issues that arose when selling its products directly on Amazon.

“The strategies that digitally native brands used to outsmart Amazon are now being used by large retailers like Nike and Disney to win modern consumers,” Returnly’s founder and CEO, Eduardo Vilar said. “Nike is trying to emulate the strategies of DTC brands and cutting ties with their retail partners. Disney is doing the same with Disney+.”


Company: cnbc, Activity: cnbc, Date: 2019-11-29  Authors: deirdre bosa laura batchelor, deirdre bosa, laura batchelor
Keywords: news, cnbc, companies, throne, strategy, brands, dtc, fluhr, ecommerce, amazons, companies, returns, run, amazon, making, consumers, disney, nike, directtoconsumer


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