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Alibaba Just Flashed Green, Very Green 2023-07-12 - Key Points Key headwinds from recent years continue to dissipate, with last week's news perhaps the biggest. Even with the recent rally, shares remain comparatively cheap. They're well-supported technically and on the verge of crossing the $100 mark. 5 stocks we like better than Alibaba Group After trading sideways in a tight range for more than a year, the stars are finally aligning once more for Alibaba Group Holding Ltd NYSE: BABA stock. Shares of the Chinese e-commerce and cloud computing giant had to endure one of the more publicized slides from highs over the past two years, with them coming with a few cents of an all-time low as recently as last October. But with many of the key headwinds of recent years continuing to dissipate, including a major announcement last week, there's possibly never been a better time to get involved. For starters, Friday saw what many on Wall Street are calling the end of the Chinese crackdown on tech, as Ant Group, of which Alibaba is a 33% owner, was fined close to $1 billion by the Beijing authorities there. This was seen as the closing of a multi-year chapter which saw increased antitrust scrutiny weigh on what had been some of the best-performing equities out there. JPMorgan's Alex Yao said with the news that "we believe the fines indicate that the rectification of large fintech platforms has come to an end," and we're inclined to agree. Share Repurchase Following the news, Ant Group, which was founded by Alibaba's Jack Ma, announced they would be kicking off a major stock repurchase scheme. This is one of the most bullish signs a company can give to the market and effectively means they believe shares are trading so far below the fair value that the best use of available capital is to simply invest in themselves. It's been a good week for Alibaba shares as a result, with the stock gapping up on Monday and continuing to rally through this morning's open. At the time of writing, shares were up 13% from where they closed last Thursday, a move that's been mimicked in many of Alibaba's Chinese tech peers. If this is indeed the beginning of the end of China's crackdown on its tech sector, then it's another reason for the bulls to be cheering. Other headwinds that are also starting to break up include US-Chinese geopolitical tensions, which have received much attention in recent weeks. The special presidential envoy for climate, John Kerry, as well as Secretary of State Anthony Blinken and Treasury Secretary Janet Yellon, have all recently made high-profile trips to Beijing, as has Tesla Inc's NASDAQ: TSLA Elon Musk. The feedback from these meetings has been positive, and there are reports of a noticeable defrosting in relations over the past few months. The delisting concerns which also plagued US-listed Chinese stocks have, for the most part, also been addressed. At the end of last year, US authorities finally received what was called "historic" access to key audit data. It was the lack of this and the associated concerns which had caused many investors and funds to turn their backs on Chinese stocks. Still Cheap And the best news for those of us considering getting involved now is that there are more tailwinds than headwinds? Alibaba is still cheap comparatively. The stock is still trading around where it IPO'd in 2014, and its price-to-earnings (PE) ratio is only 25. Compare that to its closest American peer, Amazon.com Inc NASDAQ: AMZN, whose shares are currently at 2020 levels and carry a PE ratio of 315. Technically speaking, all these bullish factors have yet to be properly accounted for, though with shares continuing to tighten in a bullish pennant formation, it feels like we're nearing an inflection point. Investors getting involved have a clear and easy support line of around $80 to work emergency stops, while to the north, triple-digit prices beckon once again. Alibaba first crossed the $100 mark back in October 2014. Nearly nine years later, their quarterly revenue numbers are 16 times bigger, and their business outlook is the brightest it's been in years. We're inclined to think we're about to see the second and final time it crosses over and above $100. Before you consider Alibaba Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Alibaba Group wasn't on the list. While Alibaba Group currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
This Small Cap Stock Surged Over 100% 2023-07-12 - Key Points Shares of Elox surged almost 100% after receiving an increased price target from Oppenheimer and published preclinical data demonstrating activity against subtypes of colorectal cancer. Oppenheimer raised Eloxx's price target from $50 to $55, implying a potential upside of nearly 500%. The stock has a micro float and low trading volume, resulting in a significant historical range and volatility in its stock price. 5 stocks we like better than Eloxx Pharmaceuticals Arguably the most impressive mover yesterday was a stock you have probably never heard of. Shares of Eloxx Pharmaceuticals NASDAQ: ELOX rocketed almost 100% yesterday after receiving an increased price target from Oppenheimer. The increased price target follows Monday's announced publication, detailing the preclinical data demonstrating activity for ZKN-157 against subtypes of colorectal cancer. About Eloxx Pharmaceuticals Eloxx is a clinical-stage biopharmaceutical company focusing on developing ribosome modulation to treat rare and ultra-rare premature stop codon diseases. Eloxx's pipeline currently consists of six candidates. The company's lead candidate, ELX-02, is now in Phase 2 and aims to treat cystic fibrosis and nephropathic cystinosis patients with diagnosed nonsense mutations. The company was founded in 2013 and headquartered in Watertown, Massachusetts. ELOX has 2.1 million shares outstanding and a free float of 1.7 million. At the time of writing this, the market cap of ELOX is $19.3 million. Why Shares Soared Higher Oppenheimer announced a price target increase for ELOX, raising its price target from $50 to $55 and maintaining its Outperform rating on the stock. The price target implies a staggering potential upside of almost 500%. On Monday, a publication titled "A Novel Class of Ribosome Modulating Agents Exploits Cancer Ribosome Heterogeneity to Selectively Target the CMS2 Subtype of Colorectal Cancer" was published in Cancer Research Communications. The publication showed the potential of the company's TUBRO-ZM chemistry technology platforms to develop novel Ribosome Modulating Agents and details preclinical data that demonstrate activity for ZKN-157 against subtypes of colorectal cancer. As a result of the publication on Monday and the price target increase on Tuesday, shares soared close to 100% by the close of Tuesday. ELOX Rockets Higher The daily chart represents the risks associated with trading or investing in a small-cap stock with a micro float. The range between support and resistance is significant and a direct result of the micro float of the stock. Due to the size of the float and the absence of volume, the historical range and volatility have been significant. The stock has a Beta of 2.54 and an average volume of 1 million. YTD, the stock is up 316%. While higher time frame support is near $4, the stock spent significant time consolidating near $8 on Tuesday. So from now on, $8 will be a critical short-term level of support, and bulls should not want to see the stock spend much time below that level. The Company Needs To Raise Cash As with many small-cap, clinical-stage biopharmaceutical companies, sufficient operating capital poses a significant challenge. Eloxx has a quarterly cash burn of ($6.81) million; as of March 31, the company had only $4.3 million in cash. Therefore, the company is likely to be cash-negative right now and will need to raise in the near term, which will likely have a negative impact on the stock's share price. Before you consider Eloxx Pharmaceuticals, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Eloxx Pharmaceuticals wasn't on the list. While Eloxx Pharmaceuticals currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
The CPI Data Isn’t As Good As You Think It Is 2023-07-12 - Key Points The CPI cooled more than expected, but the slowdown may not last long. Detail within the report are mixed and suggest underlying inflation will remain above target. The Fed is expected to hike rates at least 1 more time, and there is risk oil prices will sustain inflation. 5 stocks we like better than SPDR S&P 500 ETF Trust The equity markets increased following the June read of CPI, but investors should not be optimistic about the news. As good as cooling inflation is, inflation remains hot, and the market has many hurdles. Among them is the FOMC which is still expected to hike interest rates again this year. That has spurred an increased expectation for bank failures, consolidation among regional banks, and tightening credit conditions that will dampen demand. The takeaway is that the US economy is still on a collision course with a recession, and the Fed isn’t letting off on the gas. CPI Cools More Than Expected In June The Consumer Price Index was better than expected in June, but details within the report are mixed. The headline figure came in at 0.2% MoM and 3.0% YoY to beat consensus by a tenth in both comparisons. However, the figures are mixed relative to the previous month because inflation accelerated month-to-month but less than expected. The YOY figure is the market mover, down from the previous 4.0%, but it is still hot and worth watching. The report highlighted housing, food prices, and energy as the most significant contributors to inflation. Housing and energy prices are not expected to fall due to supply/demand imbalances; food prices may stabilize but are supported by stable and potentially rising oil prices, so inflation may continue to run hot, albeit slower. The core figures are better but still hot. Core inflation cooled month-to-month and year-over-year to hit 0.2% and 4.8%. The caveat is that 4.8% core inflation is hot enough to keep the Fed on track to continue hiking interest rates, given the demand outlook for energy and homes. The critical data for the market is the CME’s FedWatch Tool. The FedWatch Tool revealed some repositioning following the CPI news but is ultimately unchanged from before the release. The odds of a single 25 basis point hike at the next meeting (July 26) held steady at 91%, while the odds for the duration of rates were also steady. The market expects the base rate to be at least 525 bps, if not higher, at the end of the year, which is still mispricing the Fed. Interest rates have cooled, but housing data, food price data, and energy data suggest the cooling may end. In that scenario, the Fed could follow throw on the indication that 2 or more additional interest rate hikes could be needed. The Wild Card Is Oil Prices Oil prices NYSEARCA: USO underpin the cost of everything, and the oil price may be set to rise. The threat of recession has the oil price down well off the high set following Russia’s invasion of Ukraine, but it is well-supported at the current levels. Two things to note is that oil price stabilized above the pre-pandemic levels, and OPEC+Russia are fighting hard to keep the supply/demand outlook in favor of rising prices. OPEC and Russia are controlling output and seeking new members. New members would increase the cartel's market share and ability to support the price action and drive inflation. The S&P 500 NYSEARCA: SPY surged on the news by a slim 0.70%, not even 100 basis points. That is not a sign of deep conviction; the market is still below resistance at the current all-time high. The S&P 500 may drift up to retest the highs, but there are 2 significant hurdles to cross. The first is the Q2 earnings season which begins this week; the 2nd is the FOMC meeting. The Q2 earnings season could be a dud, and another interest rate hike won’t help the EPS growth outlook. Before you consider SPDR S&P 500 ETF Trust, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SPDR S&P 500 ETF Trust wasn't on the list. While SPDR S&P 500 ETF Trust currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
How to Invest in Gold and Silver 2023-07-12 - Key Points Gold and silver can be valuable additions to any investment portfolio. They have historically retained value during inflationary periods. There are multiple methods that you can use to invest in gold and silver, many of which don't require holding physical metals. Having been used in currency, jewelry and royal architecture for centuries, precious metals like gold and silver have an inherent, alluring quality. For investors, the allure of gold and silver goes far beyond their vibrant hues and versatile decorative nature, acting as a hedge when assets like stocks tend to dip, or inflation rates rise. You can use multiple methods to invest in gold and silver, from putting money into companies that operate gold mining and processing facilities to purchasing physical metal. Read on to learn more about the many ways to invest in gold and silver (including how to invest in silver and gold ETFs). Understanding the Basics of Investing in Gold and Silver Investing in gold and silver can act as a valuable addition to a fully diversified portfolio and are valuable to investors for many reasons. Gold and silver (and other precious metals like platinum) have historically retained value, making them an appealing choice during economic uncertainty. Gold, in particular, is often classified as a strong alternative asset, which means it tends to show less volatility and may even rise in value when the overall market is bearish. Gold and silver are alternative assets — investments beyond traditional funds, stocks and bonds. Alternative assets usually fall outside the U.S. Securities and Exchange Commission (SEC) realm, although certain aspects of alternative investments may still be subject to regulation. While you'll face fewer limitations on when you can place buy orders and how you store and use your investments, you may be at a greater risk of financial loss if you don't combine this risk with research. Other examples of alternative assets include cryptocurrencies, real estate and hedge fund investments. Ways to Invest in Gold and Silver You can use multiple methods to invest in both gold and silver itself, as well as the many companies associated with fine metal unearthing and processing. ETFs and Mutual Funds An exchange-traded fund (ETF) and a mutual fund are both types of investment vehicles that involve pooling investor funds to accomplish a particular goal. These assets allow you to benefit from price increases in precious metals without directly owning the assets. Learning to invest in a gold and silver ETF may also allow you to gain exposure to other investments, as these products diversify across multiple holdings. Stocks Stocks are shares of ownership in a publicly traded company. If you're looking to invest in companies that refine and produce precious metals, buying shares of stock can be ideal. Buying gold and silver stocks also allows you to benefit from dividend payments, which are shares of a company's profits paid to stockholders. Image: Gold stocks like Gold Fields NYSE: GFI can provide investors with indirect exposure to the gold market. Futures Futures contracts allow you to capitalize on future changes in gold and silver prices. These contracts act as agreements between two investors to buy or sell a commodity at a specific price in the future. By learning how to invest in silver and gold using futures contracts, you can sell the contract before it expires to see a profit without purchasing the underlying asset. Options Options contracts are agreements between two parties to buy or sell an underlying asset at a specific date in the future. Like futures contracts, you can use options as a silver and gold investment by strategically purchasing contracts and selling them before the execution date to avoid buying the underlying asset. Physical Forms Of course, gold that you hold in physical forms also retains value. You can use multiple methods to hold physical gold, though you'll need to consider storage fees associated with them. Bullion: Gold bullion refers to bars, ingots or coins made of pure gold, typically with a high level of purity, and is used as a store of value and investment asset. Coins: Gold coins are some of the most common storage methods for highly pure gold. Not every coin is made of pure gold or silver, especially if historically used as currency and is valuable as a collectible rather than a unit of precious metal. Jewelry: Gold and silver jewelry retain value but are rarely made of pure metal. For example, gold jewelry is commonly made of 14-karat gold (only about 50% gold by volume). Gold jewelry is made with a blend of metals to prevent scratching, as pure gold (24-karat gold) is too soft to wear in practice. How to Invest in Gold and Silver The method that you'll use to invest in gold and silver will vary depending on how you're investing. Use the following steps to learn how to buy gold and silver. Step 1: Choose your investment method. The method you'll use to invest in gold and silver will dictate the buying process. Start by opening a brokerage account if you're using a financial product like options, stocks or ETFs to invest in companies that process or refine precious metals. Note that while most brokers will offer access to ETFs and stocks, you may need to seek a specific broker offering level 1 and 2 options trading and futures. Image: ETFs like the SPDR can help you benefit from price changes in precious metals without holding the underlying assets directly. When purchasing physical gold, you'll need to research a method to hold the gold in a physical form and how to store it. If you're using a tax-advantaged account like an IRA to invest in physical gold, you'll need to select an SEC-approved custodian to invest through. Be cautious of holding physical gold or silver in your dwelling, as homeowners' and renter's insurance options will usually not cover a major portion of investment losses without a rider. Step 2: Open an investing account. Choose an investment account that matches your needs after choosing how you want to invest in gold and silver. For example, compare brokers based on fees and commodity contract offerings if you want futures contracts. If you're investing in physical gold in a way that requires a custodian, compare storage security features and storage fees, which will impact your overall return. Step 3: Place a buy order. After opening and funding your investment account, place a buy order to purchase gold or silver directly or through the asset you're interested in. If you're buying using a brokerage account, consider using a limit order to control the price you pay per share. Step 4: Monitor your investment. If your broker can close your buy order, you'll see the shares or contracts in your account. Keeping your long-term goals in mind, monitor how your investment changes in value over time. Tips for Successful Gold and Silver Investing Successful gold and silver investing relies on a solid trading investment strategy. Use the following tips to cultivate a strategy before buying. Research and education: Gain a solid understanding of the precious metals market, including factors influencing gold and silver prices, supply and demand dynamics, historical performance and market trends. Stay updated on relevant news and events that impact metals' prices. MarketBeat's headlines newsfeed can be an ideal source to stay up-to-date on market movements. Define your goals before buying: Define your investment goals, whether long-term wealth preservation, portfolio diversification or short-term speculation. This will help shape your investment strategy and guide your decision-making process. Keeping your overall goals in mind can also help avoid the psychological pressure of selling too soon or too late. Consider long-term investment costs: Keep an eye on costs associated with investing in gold and silver, such as management fees for ETFs and storage fees associated with holding bullion. Consider the impact of these costs on your overall returns, and calculate them when mapping financial goals. How to Diversify Gold and Silver Investments In investing, diversification refers to investing in multiple types of assets or classes of assets. You can diversify precious metal investments in multiple ways when investing in gold and silver: Asset allocation: Asset allocation refers to dividing your capital between multiple types of investments. Investing in multiple asset classes listed above can help diversify your portfolio, providing wider exposure to the precious metal market. Geographical diversification: Consider investing in gold and silver assets from different regions to spread risk associated with geopolitical factors, economic conditions and mining operations specific to a particular location. International stocks are a great place to learn about non-domestic gold and silver investment opportunities. Overall portfolio diversification: Overall portfolio diversification is the most important type of diversification when it comes to precious metals investing, as these alternative assets enjoy fewer oversight protections. Use gold and silver investments as complements to an overall portfolio of multiple types of assets. Pros and Cons of Investing in Gold and Silver Invest in gold and silver to complement a fully diversified portfolio to maximize your investment and limit risk. Consider both the benefits and drawbacks of this type of investment before placing a buy order. Pros Unlike stocks and ETFs, precious metals have an inherent value that helps them better retain value in times of economic uncertainty. Better retain value: Gold and silver have a long history of retaining value and act as a hedge against inflation and economic uncertainties, which can add another layer of stability to your portfolio. Portfolio diversification: These metals have a low correlation with other asset classes, providing diversification benefits to investment portfolios. A common precious metal investment strategy involves buying gold and silver when the overall market is bullish to retain value better during negative periods. Liquidity: Gold and silver have long been valued by both investors and collectors, making them highly liquid. Cons The drawbacks of investing in gold and silver are similar to other alternative assets and may come with additional costs related to storage. They include: No income generation: Unlike stocks or bonds, gold and silver do not generate income or dividends, so their returns rely solely on price appreciation. This might mean waiting longer to see a return. Storage and security: Owning physical gold and silver requires proper storage and security arrangements, which may involve additional costs and risks. Which is Better, Gold or Silver? Which is best to buy: gold or silver? The answer might vary depending on your budget and investing goals. Historically, gold has been considered a more valuable product when measured by the ounce and has retained value better than pure silver overall. However, silver's value as an industrial product contributes to its value, while gold's softness makes it impractical for commercial use. Silver also generally has a lower price per ounce, making it more appealing for budget investors. FAQs Is gold or silver a better investment when compared to traditional assets like stocks and ETFs? The answer will vary depending on your investment goals. Read on to learn a few answers to some of the most common questions that you might still have about investing in gold and silver. What is the best way to invest in gold and silver? The best way to invest in gold and silver depends on individual preferences, risk tolerance, and investment goals. If you're looking for direct investment, futures contracts or physical gold and silver could be the best options. If you're looking for a more passive way to invest in precious metals, investing in major stocks or ETFs that include these investments might be a better option. What is the most trusted place to buy gold and silver? The most reputable place to buy gold and silver is through authorized bullion dealers. Several professional associations, including the Professional Numismatists Guild and the London Bullion Market Association, admit members based on strict quality and sourcing guidelines. Look for a professional association seal when purchasing gold and silver. How to invest in gold for beginners? The easiest way for beginners to invest in gold is to purchase shares of a gold stock or ETF. These products are overseen by regulators like the SEC, providing a higher level of stability for the investor and less risk of loss compared to alternative assets like pure gold bullion. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Activision Surges 10% As Judge OK's Microsoft Acquisition Deal 2023-07-12 - Key Points Activision Blizzard posted its best price action in over a year, reaching $90.99, approaching Microsoft's offer of $95 a share. The FTC can continue to pursue an antitrust lawsuit even if the deal closes. Microsoft has until July 18 to close the deal or it owes Activision $3 billion and must renegotiate the terms. The FTC has been scrutinizing deals in various industries, including pharmaceuticals. 5 stocks we like better than Activision Blizzard Activision Blizzard Inc. NASDAQ: ATVI shares rose to the call of duty on July 11, advancing 10.02% in heavy trading volume as a federal judge gave the OK for Microsoft Corp. NASDAQ: MSFT to proceed with its acquisition of the game maker. It was the stock’s best price action in over a year, with Activision stock finishing at $90.99, approaching Microsoft’s acquisition price of $95, for a total value of $69 billion. District Judge Jacqueline Scott Corley nixed the Federal Trade Commission’s motion to get a preliminary injunction to squash the transaction. Many analysts believe the FTC has been more aggressive lately, with concerns about mergers and acquisitions reducing competition in various industries, In her comments, Corley wrote, "The Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to 'Call of Duty' and other Activision content." The acquisition was also challenged by U.K. regulators, but after the U.S. decision, they hit the pause button and agreed to negotiate with Microsoft. Activision owns several popular properties, including “Call of Duty,” “Warcraft” and “Candy Crush.” Meanwhile, Microsoft publishes the “Halo” and “Minecraft” series, among others. FTC Can Appeal Ruling Despite the big price move in Activision, reflecting investor confidence that the deal will be completed, the FTC can still appeal the ruling. It seems like that’s the next step. In a statement, FTC spokesperson Douglas Farrar said, "We are disappointed in this outcome given the clear threat this merger poses to open competition in cloud gaming, subscription services, and consoles. In the coming days we'll be announcing our next step to continue our fight to preserve competition and protect consumers.” The FTC can also continue to pursue an antitrust lawsuit even if the deal closes. The clock is ticking fast for the companies to complete the transaction. Assuming an appeals court OK’s the deal, or the FTC opts not to appeal, Microsoft has a July 18 deadline to close the deal. Otherwise, under the terms of the deal, it would owe Activision $3 billion and would have to renegotiate. FTC's Heavy Hand The FTC has been cracking down on deals from several industries. For example, Amgen Inc. NASDAQ: AMGN in December said it would acquire Horizon Therapeutics Public Limited Company NASDAQ: HZNP for $27.8 billion, initially expecting the deal to be completed in the first half of this year. However, the FTC filed a lawsuit to block the deal, saying it would stifle competition in the pharmaceutical industry Regulators indicated that Amgen could employ the tactic of "cross-market bundling" by providing rebates on its current drugs, with the aim of influencing insurers and pharmacy benefit managers to Horizon’s products. Investors Lost Confidence? Both Activision and Horizon were trading in ways that indicated investors had lost conviction about the deals’ success. A look at the Activision Blizzard chart tells the story: The stock bolted 5.91% higher in March when the Microsoft deal was announced. When the FTC began making noises about preventing it from going through, shares fell 11.45%, but have gradually been rising as analysts saw hopeful signs. Typically, when a company is being acquired, its stock trades sideways, in an extremely narrow range, just below the acquisition price. If a deal looks likely to go through, there’s no more upside in the stock beyond what the acquiring company is willing to pay. That means it’s out of play for individual investors. But Activision, after being pushed down by doubts, had room to run. Hence the big gain on July 11. Microsoft Shares Up Slightly Microsoft shares were up 0.19% on July 11, recovering from a bout of selling after the Nasdaq 100 announced it would rebalance later this month, resulting in Microsoft having a smaller index weighting. Similar to Activision Blizzard, the Horizon Therapeutics chart shows a stock that gapped down hard once the FTC cast doubts upon its acquisition. Horizon shares rose 0.36% in heavy volume on July 11, perhaps indicating some renewed confidence that the FTC won’t win its fight after all. Before you consider Activision Blizzard, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Activision Blizzard wasn't on the list. While Activision Blizzard currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Oversold Shutterstock Hits Bottom: AI For Income Investors 2023-07-12 - Key Points Shutterstock inks new deal with OpenAI that will help drive results for years. The company is leaning hard toward AI and will add AI functionality to Giphy. Analysts see a substantial upside for the stock, which is on the cusp of a reversal. 5 stocks we like better than Shutterstock The market for Shutterstock NASDAQ: SSTK stock is down 60% from its highs, but the bottom is finally in. The stock is among the most over-sold on Wall Street and shows signs of a budding reversal that could send the market back to its pandemically-inspired highs. The latest news confirms a trend of releases that point to 1 thing: Shutterstock is taking the AI game seriously and positioning itself to capitalize on it. There are gains to be made based on the outlook for AI-powered services. AI is estimated to be worth around $50 billion this year and will grow at a 50% CAGR through the decade's end. The market will reach $2.25 trillion in the early 2030s, and services will be the largest slice of the pie. The latest news is an extended deal with OpenAI. The new deal extends the previous by 6 years and expands it to additional data resources. OpenAI will have expanded access to images, videos, and music for AI-training purposes, and there is an interchange as well. OpenAI will help Shutterstock embed AI functionality into the new Giphy purchase, which should help drive the use of Giphy and Shutterstock services. Shutterstock bought Giphy from Meta NASDAQ: META for $53 million. This is a considerable loss for the Facebook parent but alleviates antitrust violations in the UK. Shutterstock execs view Giphy’s 1.7 million average daily users as an in into the mainstream market for its, until now, business-centric services. The idea is that expanding the use and functionality of social media will drive more use of Shutterstock images, media, and services. Additional benefits are cross-platform partnerships with Facebook, WhatsApp, and Microsoft NASDAQ: MSFT, to name a few. The Analysts See Double-Digit Upside For Shutterstock Needham recently pointed out Shutterstock as a potential sleeper-win in the AI space. In their view, Shutterstock has the widest risk-to-reward profile in AI due to the potential for new business streams and market share gains in the core business. Needham is 1 of 5 analysts tracked by Marketbeat with a current rating, and they have the stock pegged at Buy with a price target of $90. That’s above the $87 consensus figure and well below last year’s consensus but still a solid 65% above the current action. Even the low price target, set this year, assumes a double-digit upside, and upward revisions may be coming. The company is expected to post YOY growth when it reports Q2 earnings later this month. The analysts have lowered their targets over the past month, so the bar is low. However, the takeaway is that increased guidance may compound outperformance due to the surge in AI interest. This company stands to benefit from new revenue streams relating to the AI industry and AI services for the mass market. The real question is whether Shutterstock can make money, and it does. The company also returns capital to shareholders through a dividend income investors will like. The stock yields more than 2.2%, with shares trading near long-term lows, and the payout is reliable. The payout ratio is a low 23% of the earnings outlook, and the balance sheet is a fortress. The Technical Outlook: Shutterstock Bottoms, Reversal Is Next The Shutterstock market hit bottom late last year and retested it again in spring 2023. That resulted in a solid bounce driven by the OpenAI news, which should get the market up to $60 or higher. The question is if the stock can regain support at the 150-day moving average. If so, it will likely complete the reversal and return to the top of the trading range near $80. If not, this stock could continue to wallow at current levels or move lower until results show clear improvement related to AI. Before you consider Shutterstock, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Shutterstock wasn't on the list. While Shutterstock currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
UK lenders pass stress tests as Bank of England warns of more mortgage pain 2023-07-12 - The UK’s largest banks are strong enough to weather a £125bn financial hit during a severe economic downturn, despite facing mounting stress from rising interest rates, the Bank of England said. The central bank’s annual stress test of the country’s biggest lenders – which include NatWest, Barclays, HSBC, Lloyds, Standard Chartered, the UK arm of Santander, Nationwide building society and Virgin Money UK – determined that they would be able to continue lending to households and businesses even if conditions worsened. While the Bank of England only tested interest rates rising to 6% – which is not far beyond current levels of 5% – the scenario also involved a deep recession where GDP contracts by 5%, unemployment doubles to 8.5%, and a housing crash in which prices fall by a third. It also tested the banks’ ability to absorb soaring costs to cover misconduct, and an increase in energy prices that contributed to peak inflation levels of about 17% in the stress test scenario. Overall, the UK’s largest lenders had to prove they could absorb an aggregate £125bn in impairment charges over a five-year period. However, the central bank’s financial policy committee confirmed lenders would have to slash staff bonuses and shareholder payouts to pull through. “The financial policy committee judges it important for investors to be aware that banks would take such actions as necessary if such a stress were to materialise,” the report said. Shares in UK banks rallied in morning trading on Wednesday after the results were released, with Lloyds up 2.8%, Barclays gaining 1.3% and NatWest and HSBC rising 1.5%. “The Bank of England’s stress test results this morning, which state that the UK’s top banks would continue to be resilient in an economic environment much worse than today, are good news all round,” said Nisha Sanghani, a partner at Ashurst Risk Advisory. “As evidenced by the recent banking crisis, social media and a 24/7 global economy mean that the pace and impact of stresses to banks is in a very different place compared to 15 years ago.” The Bank of England has run annual stress tests on the UK banking sector since 2013, as part of its response to the 2007 financial crisis. The tests are meant to identify potential weaknesses in the banking system that could put financial stability at risk, and determine whether individual banks could keep lending to households and businesses despite the additional stress. This year’s results were released six months later than normal, with the central bank having postponed the exercise in March to give lenders some breathing space as they grappled with financial disruptions caused by the war in Ukraine. The Bank of England governor, Andrew Bailey, defended using an interest rate of 6% in the stress test – a level that the financial markets believe will be reached by December. “While interest rates are higher today and therefore closer to those which we published in the scenario, and it’s higher than when we first outlined the scenario, the scenario is significantly more severe than today’s conditions,” Bailey said. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion “A very important point there is that it’s the combination of higher interest rates and simultaneous recessions around the world and in this country, and materially higher unemployment that makes the stress; it’s not one thing on its own.” The Bank also released its financial stability report on Wednesday morning, which warned that parts of the global financial system remained vulnerable to potential stresses. “The risks include a worsening economic outlook, continued high inflation, and geopolitical tensions,” the Bank said. The report highlighted that a typical UK mortgage-holder whose fixed-rate deal ends in the second half of this year faces an average increase in monthly payments of about £220. “UK households are facing challenges from increased living costs and higher interest rates. As fixed-rate mortgage deals expire and households renew their mortgages, the average cost of mortgage payments will continue to increase,” the Bank said. The report added that the proportion of individual households facing the highest mortgage repayments was expected to increase but stay below previous highs.
UK lenders passed stress tests – but no one should feel relaxed by the news 2023-07-12 - Terrific news: the banks aren’t about to collapse. The UK’s big lenders would continue to be “resilient”, says the Bank of England, even if the dark clouds over the economy turn into a prolonged thunderstorm. They have sufficient loss-absorbing capital to keep lending to households and businesses even in a “severe stress scenario”. For good measure, the governor Andrew Bailey made a sharp comment that banks shouldn’t use worries about resilience as an excuse not to pass on interest rate increases to savers. To those who fret that the stressed scenario is insufficiently stressful, the Bank had a reasonable response. A projected stressed base rate of 6% (these tests were designed last September) may be close to today’s reality of 5%, but other inputs into the “severe but plausible” sketch still offer yards of headroom. UK GDP has risen a fraction since September, versus a 5% fall in the tests; inflation almost certainly won’t average 11% for three years; and you won’t find a mainstream economist who thinks the unemployment rate, now 4%, will rise to a stressed projection of 8.5%. What’s more, the interaction between factors, including recessions abroad, also matters stress-wise, argued the Bank. Fair point. Yet nobody could possibly read the test results, plus the accompanying financial stability report, and relax. For starters, the “mortgage timebomb” – the effect of borrowers gradually coming off fixed-rate deals – only looks more threatening when you see the probable detonation set out in graphical form. Only half of mortgage accounts (about 4.5m) have yet to suffer increases in payments after rates started to rise in late 2021. A typical mortgage holder coming off a fixed-rate deal in the next six months will see higher monthly payments of £220. And almost 1m homeowners can expect to pay £500 more a month to cover mortgage payments by the end of 2026. The Bank says the overall mortgage debt-servicing burden will still be below peaks recorded during the 2007–08 global financial crisis and the early 1990s recession, but it’s referring to aggregate tallies that include unmortgaged households. The point is the financial pain is concentrated and intense. And for renters, the news sounds worse as buy-to-let landlords contemplate a hit to their profits, which will inevitably translate in many cases to attempts to hike up rents. Here’s the Bank’s remarkable statistic related to interest coverage ratios (ICRs), a measure of rental income relative to interest payments: if landlords were to absorb higher mortgage costs themselves (in other words, keep the rent unchanged), the share of buy-to-let mortgages with ICRs below 125% would increase from 3% at the end of 2022 to just over 40% by the end of 2025. Therein lie the fine margins of buy-to-let borrowing – and also a world of potential aggro between landlord and tenant. Or, if you prefer your risks to be more big-picture, go to the section of the financial stability report that reminds readers that non-bank financial institutions – think pension funds, insurers, investment funds – have grown since 2007-08 to represent about half of UK financial sector assets. The authorities have already suffered one heart attack when LDI (liability-driven investment) strategies blew up after the Truss/Kwarteng “mini-budget” last autumn. Now the Bank is worried about games of over-leverage being played by hedge funds building large positions in the US Treasury market and exposing themselves to sudden price moves. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion “The sharp transition to higher interest rates and currently high volatility increases the likelihood that MBF [market-based finance] vulnerabilities crystallise and pose risks to financial stability,” says the report. “There continues to be an urgent need to increase resilience in MBF globally,” it adds. The Bank has been issuing such warnings for ages. One of these days, it may matter.
Hornsea Four offshore windfarm given green light after five-month delay 2023-07-12 - One of the UK’s largest planned offshore windfarms will move ahead after the government gave the green light to a giant project off the Yorkshire coast after a five-month delay. The fourth phase of the Hornsea windfarm development is expected to include 180 giant turbines, capable of generating the equivalent of enough green electricity to power 1m homes. The 2.6GW North Sea project is the second-largest windfarm to receive government consent, following the Hornsea Three project which is being developed and will have a capacity of just over 2.8GW. The first two phases of the Hornsea development, which are operational, have a capacity of 1.2GW and 1.3GW respectively. Grant Shapps, the energy secretary, approved the project on Wednesday after the UK’s planning authority handed the decision to the government earlier this year. The delay has reignited calls within the energy industry to overhaul the planning system to make it quicker for offshore windfarms to move ahead. Shapps said that although the project would have some impact on the environment, these would be outweighed by “the urgent need for low-carbon energy infrastructure”. The developer behind the Hornsea development, Danish wind power giant Ørsted , said the government’s consent marked “the culmination of a rigorous process which ensures that the project can deliver” clean energy for the UK. A spokesperson said the company would review the full development consent order before moving the project forward “sensitively and sustainably”. “Offshore wind projects such as Hornsea Four are key to the UK’s energy security and will bring billions of pounds of investment into the UK, provide low-cost electricity for consumers and thousands of high-quality jobs,” they added. Sam Richards, the founder and campaign director for Britain Remade, a group campaigning for economic growth in Britain, said the government had “finally seen sense”. “If we want to be energy secure, if we want to slash energy bills and if we want to drive growth and create jobs, we have to speed up the time it takes to get major clean energy projects, like Hornsea Four, up and running,” he said. skip past newsletter promotion Sign up to The Guardian Headlines UK Free newsletter A digest of the morning's main headlines emailed direct to you every week day Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion “It is frankly ridiculous that it can take up to 13 years for an offshore windfarm to go from idea to generating power, when actually building the thing takes two years at most. Britain can be a clean energy superpower, but to achieve this we need to rapidly fix our broken planning system,” Richards added. Ana Musat, a director at RenewableUK, said the windfarm would “strengthen Britain’s energy security significantly, helping us to move away from the volatility of international gas prices and closer towards energy independence” while helping the UK meet its legally binding climate targets.
FTSE 100 marks best day of 2023 as US inflation falls to 3% 2023-07-12 - Britain’s blue-chip share index has posted its biggest one-day jump of 2023 after US inflation slowed by more than expected last month. The FTSE 100 index gained 133.5 points on Wednesday to 7,416 points, up 1.83%, its best day since November 2022. Copper producer Antofagasta led the risers, jumping by 5%, followed by packaging firm Smurfit Kappa (+4.9%) and electrical products distributor RS Group (+4.5%). City traders were cheered by the news that US consumer prices rose by 3% in the year to June, the slowest inflation rate in more than two years, down from 4% in May. As the dollar declined, the pound hit $1.30 for the first time since April 2022. Easing US inflation figures lifted hopes that past increases in interest rates were succeeding in cooling prices. That could mean America’s central bankers may finally pause their increases in borrowing costs soon, easing fears that they would trigger a recession to fight inflation. The drop in US inflation in June can largely be attributed to a fall in energy prices, which fell by 16.7% over the last year, with gas prices falling by 26.5%. Annual core US inflation, which strips out food and energy, cooled to 4.8% from 5.3% in May. This measure is closely watched by policymakers. Ronald Temple, chief market strategist at Lazard, said there was “nothing not to like” in the US inflation report. “Shelter [housing] inflation decelerated as expected, services ex-shelter rose at less than a 2% annualised rate, and core goods prices were down due to slightly lower used-car prices that are likely to decline further through year-end,” Temple said. “It’s too early to pop the champagne, but it’s not too early to start chilling the bottle,” Temple advised. The US dollar fell by 1% to a 15-month low against a basket of currencies, on expectations that US interest rates could be near their peak. George Saravelos, analyst at Deutsche Bank, said it was time to sell the dollar. “First, we feel increasingly confident that the US disinflation process is well under way … Second, the disinflation process looks increasingly benign,” Saravelos said The US Federal Reserve left interest rates on hold in June, after raising them 10 times in a row since March 2022. It meets again later this month, with some analysts suspecting it might make its final rise of the current cycle at its July meeting. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion “There’s no denying that at 3% June’s CPI number is the smallest year-on-year increase since March 2021 and that all-important core number also fell back significantly,” said Danni Hewson, head of financial analysis at AJ Bell. “But despite the cautious optimism evident from market reaction it seems unlikely the Fed will be swayed enough to change course just yet.” Analysts at ING said: “The Federal Reserve seems intent on pushing ahead with a July rate hike, but the need for additional tightening thereafter is questionable.” According to CME Fedwatch, the Fed is likely to raise borrowing costs by 0.25 percentage points later this month, to a 5.25% to 5.5% range, but then leave them there for the rest of the year. The Bank of England, though, is expected to raise interest rates from 5% to 6% by the end of 2023. European stock markets also rallied, with Germany’s DAX and France’s CAC both up by about 1.5%. On Wall Street, the S&P 500 share index hit hits highest level since April 2022. The FTSE 100 has had a volatile year. After hitting a record high of more than 8,000 points in February it has fallen back, and has lagged behind other main indices during 2023. The index has rallied back to where it began for 2023, while the S&P 500 has gained 16% this year. Government bonds also recovered some of their recent losses, on hopes that inflation was being tamed in the US. This pulled down the yields, or interest rates, on short-term UK and US bonds, which hit 15-year highs last week. “Today’s inflation numbers won’t have altered the calculus around [0.25 percentage points] US rate hike in two weeks’ time, however the direction of travel when it comes to the wider trend suggests it could be the last one in the current rate hiking cycle,” said Michael Hewson of CMC Markets. “It is this shift that markets are reacting to, with yields falling sharply in the US, as well as here in the UK.” Inflation in the US is notably weaker than in Europe. Eurozone inflation is estimated to have dropped to 5.5% in June, while it was 8.7% in the UK in May, with June’s figures due next week.
Stitch in time: France to help pay for clothes to be mended to cut waste 2023-07-12 - A broken heel, a rip in trousers, buttons missing from a shirt? Don’t throw them away if you live in France, where the government will pay a “repair bonus” to have them mended in a new scheme aimed at cutting waste. An estimated 700,000 tonnes of clothing is thrown away in France every year, two-thirds ending up in landfill. From October, people will be able to claim back between €6 and €25 of the cost of mending clothes and shoes in workshops or at cobblers that have joined the scheme. Bérangère Couillard, the secretary of state for ecology, announced the financial incentives during a visit to a responsible fashion hub in Paris. The repair bonus will be paid from a €154m fund the government has set aside for the next five years, she said. She invited all sewing workshops and shoemakers to join the scheme, which will be run by the eco-organisation Refashion. “The goal is to support those who carry out repairs,” Couillard said during the visit. This would encourage workshops and retailers to offer repair services with “the hope of recreating jobs”. More than 100bn textiles – the terms covers clothing, shoes and household linen – are sold worldwide annually. In France, this amounts to about 10.5kgs a year for each person. Refashion aims to encourage people not only to repair and reuse, but to reduce the amount of textiles they buy and to donate those they no longer want. It says about 56% of the donations can be used again and 32% can be recycled into something new. The repair bonus scheme is part of a wider push by the French government, starting at the end of last year, to reform the textile industry, one of the most polluting on the planet, and to combat what is termed fast fashion. Clothing and textile shops must also label items with the material used and the country where it was produced and manufactured. Measures to encourage consumers to repair, reuse and recycle clothing follow a similar scheme offering bonuses to those who have household appliances repaired. In 2020, France passed a law aimed at changing production methods and consumption habits in relation to household goods in order to cut down on waste, conserve natural resources and limit damage to biodiversity while addressing the climate crisis. skip past newsletter promotion Sign up to This is Europe Free weekly newsletter The most pivotal stories and debates for Europeans – from identity to economics to the environment Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The legislation takes the form of a six-year plan that began with an education and information campaign outlining targets for the reduction, reuse and recycling of products, including targets for eliminating single-use plastics. New measures are introduced under the legislation each year. In 2022, public buildings including railway stations, hospitals and schools were required to install a water fountain, and at the beginning of this year restaurants with more than 20 seats and fast-food outlets were banned from using disposable cutlery, plates and cups for meals consumed on site. France in 2016 banned supermarkets from destroying unsold food instead of donating it for redistribution. Companies are now also required to be more open about the planned obsolescence of goods they produce and encourage the publication of a “repairability index” to detail the ease or difficulty with which a product could be mended. Further restrictions on products containing microplastics, including cosmetics, shampoos, hair dyes and shower gels, and the use of plastic wrappings will come into effect in the next three years.
Everything I hate is on Twitter – how can the alternatives compete? | Zoe Williams 2023-07-12 - “And he couldn’t do it. He could not fucking die. How could he leave? How could he go? Everything he hated was here.” The end of Philip Roth’s Sabbath’s Theater is a perfect distillation of how many of us felt about Twitter when Elon Musk bought it last October. But I didn’t know that from reading it, even though I have; I knew that because someone faster, smarter, probably younger, with a better memory (@hayleycampbell), put it on Twitter. So even though everything I hate is there, so is a lot of what I love. My father never owned a TV, because he said every time you thought you were good at something – cooking, repartee, being alive – on the telly, there’d be someone who was better at it than you. I thought that was just an unlovely overhang of a 40s childhood: the whole point of repartee, and indeed cooking and being alive, is that the more people who can do it, the better. Also, I really wanted a TV. Quite soon after Musk’s purchase of the platform, more of what I hated was there. Donald Trump was readmitted, having been barred to avoid the risk of further incitement of violence after the ambush of the Capitol in 2021 – and the sheer brazenness of the free speech justification, the tedium of it, was depressing to witness. Blue ticks were monetised, destroying any trust in verification while generating not much revenue. Some staff walked, some were fired, and the endless pranks of the new owner – walking into HQ with a sink, sending a turd emoji as an auto response to journalist enquires – were, again, deadening to watch. A rich-enough man can erode workplace rights yet talk about the work ethic of his staff; he can drag the discourse into a mire and have you debating that as an inalienable freedom; he can engage the whole world in having the wrong conversation. And at the user level, Twitter was rubbish. Long conversations I wasn’t interested in, full of anti-trans prejudice and homespun ick about misremembered feminist lore, flooded my timeline. How could this possibly have been curated “for me”, when I blocked all that stuff years ago? Was it just a broad-brush algorithm for the middle-aged, or a more precisely targeted goading? My direct messages, meanwhile, were full of accounts with pretty avatars touting a scam that was quite novel to me. A young woman who wants to sell you some crypto, but has also just split up with her boyfriend and is drunk: fair play, I’m glad to know this exists as a genre. I’d hate to be the person who still thought internet scamming meant pretending to be a prince who just needs to quickly leave a million dollars in your bank account. As alternatives to Twitter sprang up, the question moved on: Mastodon, the so-called “fediverse”, was an early migration option and ticked all the right boxes politically. It can never be bought, is democratically moderated, and (with the caveat that I could probably be using it better) is also nothing like horrible enough. There are more mature faults to find – it is more sparsely populated, the timelines are quite repetitive – but the main void is of gleeful spite. Despite hating Twitter, there is something compelling about the horror of it all. Threads, Mark Zuckerberg’s rival network, tied to Instagram, overcame many of those early hurdles just by having more money and being part of an existing platform: almost overnight, it had 100 million users. People with large armies of followers mourned the fact that they would have to start from scratch, but rebuilding didn’t seem as unrealistic as it did on Mastodon. It was also gratifying to see the new platform work so well, having scooped up so many of Twitter’s disgruntled employees, and more pleasing still to see Musk’s half-hearted legal challenge to Zuckerberg on that basis. It turns out there are still kinks in the winner-takes-all capitalist model; your employees are still free to work for your competitors. Essentially, all these town-square platforms, the rivalries and differences between them, and more importantly the emotional and intellectual investments we make to build them, make questions that have been building for years more pressing. What makes Wikipedia Wikipedia – an astonishing display of human cooperation and expertise, of both unbelievable richness and winsome peculiarity – and Facebook Facebook – a place where people gather to drive each other into unlovely spasms of envy, delusion, triviality and extremism? What is it about the funding models, the governance and the vision that creates such very different experiences from the same raw material: people, participating? Is it as simple as profit motive; and if so, why aren’t all non-profit platforms naturally, atmospherically, better? In one way, Musk did everyone who cared about Twitter a favour, teaching us how vulnerable it was to the hooliganism of one ego; but we must figure out some solution better than “boycott and find a hobby”; we don’t need Zuckerberg to teach us that lesson twice.
HS2 chief executive resigns from delayed and scaled-back rail project 2023-07-12 - The chief executive of the HS2 railway has resigned amid severe delays and soaring costs that have seen the project scaled back. Mark Thurston announced on Wednesday he would be departing the government-owned company at the end of September after six and a half years at the helm – making him the firm’s longest serving chief executive. The HS2 chair, Sir Jon Thompson, will take over as executive chair for an interim period while a new chief executive is recruited. The scheme, which the government pledged would drive investment and economic growth in the north, has been delayed repeatedly to between 2029 and 2033 due to spiralling costs and construction difficulties. Thurston’s resignation comes as major work is taking place at more than 350 sites and the first phase of the project between London and Birmingham is at peak construction. It follows a bruising report from parliament’s public accounts committee (PAC) last week that urged the Department for Transport (DfT) to “finally establish” its expectations for HS2’s London Euston terminus. MPs said the government “does not know what it is trying to achieve” with the station, after its construction was paused – along with other parts of HS2 – in March by the transport secretary, Mark Harper. HS2 trains are now not expected to run in to Euston until 2041 at the earliest, after initially being scheduled for 2026. The DfT has been under severe pressure to find cost savings on the project as soaring inflation means the cost of raw materials has increased significantly. Part of the line between Birmingham, Crewe and Manchester was delayed by two years in the spring – meaning the line to Crewe may not be open until 2036, and it will not reach Manchester until 2043. The eastern section, between the Midlands and Leeds, was scrapped in 2021. Thurston, 56, said the project was the “highlight of my career” and the “next 18-24 months will see the project move into an exciting new stage”. He added: “I have agreed with the board that someone else should lead the organisation and programme through what will be another defining period for HS2.” skip past newsletter promotion Sign up to The Guardian Headlines UK Free newsletter A digest of the morning's main headlines emailed direct to you every week day Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion HS2’s latest annual report shows he was paid a salary of £617,300 in the 2021-22 financial year and also received benefits worth £5,400. His total renumeration of £622,683 made him the UK’s best-paid civil servant. The previous chief executive at HS2, Simon Kirby, held the position between 2014 and 2017, and was preceded by Alison Munro who was in place from 2009 to 2014. Harper said: “As well as successfully overseeing the start of construction, [Thurston] has ensured HS2 has created tens of thousands of skilled jobs and apprenticeships across the country. “As HS2 enters its next phase, the government remains committed to unlocking all the benefits of this flagship infrastructure scheme – increasing rail capacity, connecting communities and growing the economy.”
The new world's largest cruise ship just hit the ocean — take a closer look at the gargantuan 7,600-guest vessel ahead of its 2024 debut 2023-07-12 - But no matter where you stay, the Icon of the Seas will have enough family-friendly activities to keep any passenger entertained for its week-long itinerary.
How Kim Kardashian built her business empire. She's now worth more than $1 billion. 2023-07-12 - She told Variety that she saw the opportunity to make money and capitalized on it Ethan Miller/Getty Images Kim said she called up a store, bought five pairs of the Manolos for $700 each, and resold them on eBay for $2,500. She said she became so "obsessed" with the return that she began to sell off her own clothes that she no longer wore. Source: Variety
France will start subsidizing their citizens' shoe repairs 2023-07-12 - France has introduced a discount for repairing shoes and clothing. The bonus incentivizes people to keep the items they already own instead of throwing them away. Clothing repairs are favored by sustainability advocates, but they can be expensive. Sign up for our newsletter to get the latest on the culture & business of sustainability — delivered weekly to your inbox. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy French citizens will soon be entitled to discounts on their shoe and clothing repairs. Beginning in October, the country's government will give a 7 euros, or about $7.79, discount for heel repairs and between €10 and €25 for clothing repairs, Le Monde first reported. The bonus will be available for the next five years from a total fund of €154 million, or about $171 million. The country hopes the discount will incentivize people to keep the items they already own, rather than throwing them away and purchasing brand new items. The fashion industry contributes 10% of global carbon emissions, more than international flights and maritime shipping combined, Insider previously reported. Approximately 21 billion tons of clothing are sent to landfills each year, according to the United Nations Economic Commission for Europe. Sustainability advocates favor clothing repairs as one way to slow the climate crisis and create a circular economy, in which we reuse existing resources and reduce waste. However, there is a significant cost barrier to normalizing repairs. The nonprofit donation center Goodwill cleaned and repaired more than 1,000 garments in a pilot program organized by the California Product Stewardship Council, local news site Mission Local reported. Goodwill repaired and sold more than 700 damaged items that would have been thrown away for an average price of $31 per recycled item. The organization found that the repairs can be expensive — stains cost an average of $17.34 to remove and other repairs cost up to $34. This isn't the first time France has incentivized repairs. In April, the government doubled-down on discounts for citizens who repaired their home appliances instead of throwing them away. When they service an appliance through a participating business, they can receive as much as €30 for small items like a vacuum cleaner and up to €90 for a computer. While France isn't the most sustainable country in the world, it's in 12th place on Yale University's annual Environmental Performance Index, which ranks 180 countries on climate change performance, environmental health, and ecosystem vitality.
We crowned these 8 standout products as 'best overall' in an Insider Reviews buying guide, and now they're on sale for Prime Day 2023-07-12 - When you buy through our links, Insider may earn an affiliate commission. Learn more. Even though Prime Day 2023 is almost over, you still have time to find great deals on some of the best products we've ever reviewed. Make sure you take advantage of these sales before Prime Day ends tonight. In this guide, we've chosen a list of select top products that have achieved our 'best overall' distinction in their buying guides, meaning they really are the cream of the crop. All of these products are seeing sales during Prime Day, making it truly the perfect time to jump on what we've deemed as the best in class.
The 32 best Amazon Prime Day back-to-school deals 2023-07-12 - When you buy through our links, Insider may earn an affiliate commission. Learn more. Back-to-school shopping on Amazon Prime Day is a convenient and efficient option for students and parents alike. Although Amazon Prime ends tonight at 12 p.m. PT, you can still access deals on a vast selection of school supplies, electronics, clothing, and more. If you're looking for a one-stop shopping experience for your school supplies this year, make sure to take advantage of our special savings on select products listed below before Prime Day comes to a close. Right now, Five-Star notebooks are a rare 59% off and you can get a great deal on an HP Chromebook for $221. Don't miss out on these great opportunities to save while preparing for the school year ahead. Top 5 back to school deals Deals on backpacks and lunch boxes Deal icon An icon in the shape of a lightning bolt. Lowest Price Bentgo Fresh Leak-Proof, 4-Compartment Lunch Box This lunch box comes with an extra divider so you can have three or four sections. Plus, the removable tray insert is dishwasher safe. Right now, the grey, aqua, and blue models are on sale for an all-time-low price. $29.99 from Amazon Originally $39.99 Save 25% Deal icon An icon in the shape of a lightning bolt. Deal JanSport Cortlandt Laptop Backpack Discover the JanSport Cortlandt Laptop Backpack, the ideal choice for back-to-school requirements. This backpack boasts a durable construction and generous storage capacity, perfectly suited for carrying all your essentials, including a laptop. What's even better is that the JanSport Cortlandt Laptop Backpack is currently available at a 20% discount. $46.70 from Amazon Originally $60.00 Save 22% Deal icon An icon in the shape of a lightning bolt. Deal OmieBox OmieGo Plant-Based Plastic Bento Box The OmieBox OmieGo is designed for adults and offers leakproof compartments for food storage, making it convenient for meal prep and snacks. It is made from plant-based plastic, which is an eco-friendly choice. With its discounted price, it's a great opportunity to grab this lunch bento box if you've been considering it. $16.06 from Amazon Originally $22.95 Save 30% Deal icon An icon in the shape of a lightning bolt. Deal Bentgo Classic Perfect for both kids and adults, the Bentgo Classic is an excellent solution to separate school snacks and lunch. With its stackable design, this all-in-one bento lunch box container keeps food items neatly organized. It includes two containers, a built-in plastic utensil set, and a nylon sealing strap to keep everything secure. Take advantage of the 43% off deal on the Bentgo Classic in Khaki Green and upgrade your lunchtime routine today. $16.99 from Amazon Originally $29.99 Save 43% Deal icon An icon in the shape of a lightning bolt. Deal Hydro Flask Wide Mouth Bottle with Straw Lid Take advantage of over 30% off on the Hydro Flask Wide Mouth Straw Lid and grab a water bottle for the upcoming summer and school year. This is the perfect time to invest in a high-quality water bottle that will keep you hydrated throughout your daily activities. With the wide mouth and convenient straw lid, staying hydrated on the go has never been easier. $31.98 from Amazon Originally $49.95 Save 36% Deal icon An icon in the shape of a lightning bolt. Deal Herschel Supply Co. Backpack Herschel backpacks are built to last, so investing in one for Prime Day is likely to save you even more money down the road. You can snag this bag from Amazon for 25% off, the lowest price online anywhere. $29.96 from Amazon Originally $40.00 Save 25% Deal icon An icon in the shape of a lightning bolt. Lowest Price Ember Temperature Control Travel Mug 2 The best smart coffee thermos is currently being offered at an unprecedented low price on Amazon for Prime Day. This remarkable travel mug is equipped with a built-in heating pad, revolutionizing the way you enjoy your hot beverages on the go. $159.99 from Amazon Originally $199.95 Save 20% Deals on school supplies Deal icon An icon in the shape of a lightning bolt. Deal Amazon Basics Primary Composition Notebooks (Pack of 3) These composition notebooks have a ruled design that's ideal for practicing penmanship. This three-pack's average price has been $10 over the last several months. $7.90 from Amazon Originally $9.87 Save 20% Deal icon An icon in the shape of a lightning bolt. Deal Dingbats Hardcover Vegan Leather Notebook This notebook is dotted for bullet journaling and features illustrative infographics on whichever wildlife theme you choose. This is its first price significant price drop since February. $17.56 from Amazon Originally $24.95 Save 30% Deal icon An icon in the shape of a lightning bolt. Deal Five Star 3-Subject College Ruled Spiral Notebook Five Star's popular notebooks have water-resistant covers, durable folder sleeves, and paper that prevents ink bleeding. You can even scan notes and connect them to the Five Star App. With this deal, you're saving nearly $6 on a notebook that'll last all year. $4.06 from Amazon Originally $9.99 Save 59% Deal icon An icon in the shape of a lightning bolt. Deal File-EZ 2 Pocket Folders (25 Pack) These durable folders have two flexible pockets with reinforced corners. In a 25-pack, this quantity can serve the whole classroom. These are almost always priced at $25, with this deal saving you about $7. $17.95 from Amazon Originally $29.99 Save 40% Deal icon An icon in the shape of a lightning bolt. Deal Texas Instruments TI-84 Plus CE Color Graphing Calculator This rechargeable TI-84 has preloaded apps and images, 14 zoom features, and seven different graph styles. The lowest price we’ve seen is $99, but this is still a worthwhile discount. $109.00 from Amazon Originally $150.00 Save 27% Deal icon An icon in the shape of a lightning bolt. Deal Amazon Basics 3-Ring 2-Inch Binders (4 Pack) These binders have clear sleeves on front and back covers plus spine, so they can be customized for each subject. Currently, this pack of four is 30% off. $27.54 from Amazon Deal icon An icon in the shape of a lightning bolt. Deal Oxford Cardinal Assorted Pastel 3-Ring 1.5-Inch Binders (4 Pack) This colorful multipack of four easy-to-stack binders is seeing its first-ever price drop. The binders have reinforced seams to prevent splitting. $13.06 from Amazon Originally $16.57 Save 21% Deal icon An icon in the shape of a lightning bolt. Deal Paper Mate InkJoy Gel Pens Paper Mate's colorful InkJoy pens are a great incentive to read the notes and study guides you make. Get 20% off a pack of 10 during Prime Day. $7.98 from Amazon Originally $9.97 Save 20% Sharpie School Supplies Kit (38 Pieces) This 38-piece school supply kit is a teacher's best friend. It includes essential supplies that they can stash away for emergencies, from pencils and highlighters to glue sticks and erasers. Right now, it's down $6 from its average price, a rare deal. Deals on school tech and accessories Deal icon An icon in the shape of a lightning bolt. Deal HP Chromebook 14 Laptop (4 GB) This Prime Day Deal brings this HP Chromebook to low price of $221. It features a Celeron N4120 CPU, 4GB RAM, 64GB eMMC, a 14-inch (1366 x 768) display, and up to 14 hours of battery life. It's a good buy for students who need a cheap, reliable laptop for school. $221.22 from Amazon Originally $289.99 Save 24% Deal icon An icon in the shape of a lightning bolt. Lowest Price Amazon Kindle Scribe with Basic Pen (16GB) Scribe is the first Kindle e-reader to support handwritten notes, using the included pen. The 10.2-inch screen also makes it the largest Kindle yet, and the battery can last for up to 12 weeks on a single charge. The 16GB model is down to $254.99, with the 25% discount being the best we've seen since its arrival. $254.99 from Amazon Originally $339.99 Save 25% Deal icon An icon in the shape of a lightning bolt. Lightning Deal Ailawuu 6 Pack Lightning Cable 6ft Long What could be more convenient than having six spare iPhone cables at hand. For a limited time, these are close to 40% off. $12.99 from Amazon Originally $21.99 Save 41% Deal icon An icon in the shape of a lightning bolt. Lowest Price Amazon Fire Max 11 tablet Amazon's new Fire Max 11 is being called the brand's best iPad competitor yet and even though it's hot off the presses, it's already on sale. If you're looking for a solid Android tablet, this is an excellent option and right now it's on a fire sale (excuse the pun) for Prime members only. $199.99 from Amazon Originally $279.99 Save 29% Deal icon An icon in the shape of a lightning bolt. Lowest Price Kindle Kids (2022 release) This Kindle Kids edition offers excellent battery life, a bright screen, and a year's subscription to Amazon Kids+, with unlimited access to thousands of kid-friendly books for free. It's only $74.99 right now, which is the lowest price we've ever seen for this product. $74.99 from Amazon Originally $119.99 Save 38% Deal icon An icon in the shape of a lightning bolt. Great Price Apple MacBook Pro Laptop M2 Pro (2023) 14.2-inch This 14.2-inch model of Apple's latest MacBook Pro runs on the powerful M2 Pro chipset and offers up to 18 hours of battery life. A $200 discount on this recent laptop is a great deal. $1,799.00 from Amazon Originally $1,999.00 Save 10% Deal icon An icon in the shape of a lightning bolt. Lightning Deal Huanuo Lap Desk with Built-in Mouse Pad You can sip coffee and do work without ever having to leave bed with this lap desk. For a limited time, it's 20% off. $47.99 from Amazon Deal icon An icon in the shape of a lightning bolt. Great Price Logitech G502 Lightspeed Wireless Gaming Mouse with Hero 25K Sensor The Logitech G502 is an iconic gaming mouse, and offers long battery life and a massive amount of customization. It's $90 on Prime Day, which is near to the lowest price we've ever seen it on Amazon. $89.99 from Amazon Originally $149.99 Save 40% Deal icon An icon in the shape of a lightning bolt. Deal Epson Expression Wireless Color Printer XP-5200 The Epson Expression is an already-affordable inkjet printer with WiFi and USB connectivity. You can bring it into your home for an additional 23% both days of this July's sale. $99.99 from Amazon Originally $129.99 Save 23% Back-to-school deals for teachers Deal icon An icon in the shape of a lightning bolt. Deal Seventh Generation Disinfecting Multi Surface Wipes This six pack of Seventh Generation Disinfecting Multi Surface Wipes are classroom essentials for preventing the spread of germs. The active botanical ingredients clean and deodorize without using harsh chemicals. This deal prices the bulk set at 30% off and is more cost efficient than buying individual packages. $23.79 from Amazon Originally $33.99 Save 30% Deal icon An icon in the shape of a lightning bolt. Deal Rayovac AAA Batteries Don't miss out on this opportunity to save on batteries and ensure your devices stay powered up. Take advantage of the Prime Day sale and grab the Rayovac AAA Batteries at 20% off while supplies last. $23.96 from Amazon Originally $29.96 Save 20% Deal icon An icon in the shape of a lightning bolt. Lightning Deal Phomemo Portable Bluetooth Label Printer Go wild labeling everything in your home with this label maker that comes in multiple fun colors. This label maker is already 35% off but with an additional coupon, you can score an extra 12% off. Add 12% coupon. $52.85 from Amazon Deal icon An icon in the shape of a lightning bolt. Deal Be Smart Get Prepared First Aid Kit A first aid kit is important to have whether in the classroom, at the playground, or on a field trip. This OSHA approved kit from Be Smart Get Prepared contains 326 pieces to treat wounds, cuts, scrapes, and burns. On July 11 of Prime Day 2023, this deal matches the lowest price Amazon offers on this kit. $39.99 from Amazon Originally $44.99 Save 11% Deal icon An icon in the shape of a lightning bolt. Deal IRIS USA 3-Drawer Desktop Organizer The IRIS USA 3-Drawer Desktop Organizer is available in a bundle of four via Amazon, so you can stock up on a convenient way to stack classroom supplies. Through Prime Day 2023, this bulk set of desktop drawers are priced below their online average cost at 15% off. $28.04 from Amazon Originally $32.99 Save 15% Deal icon An icon in the shape of a lightning bolt. Deal Univivi Office Desk Organizer The Univivi Office Desk Organizer has 8 slots for passing in papers and keeping assignments neat and tidy. It's an easy-assemble shelf meant to keep desktops clear of clutter. On July 11 of Prime Day 2023, this organizer is at its lowest price out of anywhere online. $26.39 from Amazon Originally $39.99 Save 34% Deal icon An icon in the shape of a lightning bolt. Great Price Bestinnkits Smart Coffee Cup Warmer Set If you know someone fond of hot coffee, tea, or other beverages, this warmer set is an excellent gift and a game changer. Not only does the Bestinnkits Smart Coffee Cup Warmer keep drinks to an optimal temperature, it even includes automatic on/off functionality and a completely waterproof design. Right now it's available for $30, an even better deal than we saw during Black Friday. $31.99 from Amazon Originally $39.99 Save 20%
Walmart customers kept accidentally buying $49 Walmart+ memberships at self-checkout, forcing the company to abruptly yank a promotion 2023-07-12 - Walmart has pulled a promo for Walmart+ memberships from its self-checkout screens. The company has been pushing discounted memberships during its Walmart Plus Week event. The retailer said "some customer confusion with this process" led to accidental purchases. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy Walmart has abruptly pulled a promotion for its Walmart+ membership program after some shoppers accidentally purchased memberships at self-checkout. "We are aware of some customer confusion with this process which is leading us to remove the prompt," Walmart said in response to Insider's questions about the matter. "Any customers who inadvertently took advantage of this offer at a self-checkout and have not activated it can get a full refund with proof of purchase." Earlier reports on social media indicated that some shoppers were surprised to see the $49 discounted membership on their receipts and were seeking refunds. The membership offer was part of Walmart Plus Week, the retailer's answer to Amazon's Prime Day. Just like the Amazon program, Walmart Plus Week is about not just sales, but driving new members to sign up for the service, which normally costs Walmart shoppers $98 a year. Walmart+ offers members perks like free shipping with no order minimums and a Paramount+ subscription. Amazon recently came under FTC scrutiny for making it overly easy to join Prime and excessively difficult to cancel. Its Prime Day event, which ran on July 11 and 12, which brings in billions of dollars of sales to the e-commerce juggernaut, as well as driving new signups for the membership service. A self-checkout kiosk at a Wisconsin Walmart displays a screen prompting customers to add a membership to their cart. Dominick Reuter/Insider In stores, Walmart had originally pushed the membership promotion to customers at self-checkout kiosks — offering an easy way to access the program at just the click of a button, with no requirement to fill in any additional information at checkout. According to an internal Walmart memo obtained by Insider, customers would receive an activation code on their receipt that they could then use to activate their membership online. The memo encouraged stores to garner signups through a competition that would give a prize to the locations with the most new members. A push to grow Walmart+ Walmart has pushed to grow its Walmart+ membership base for some time now. Last August, Insider reported that the company had begun offering free Walmart+ memberships to store associates, which while voluntary, led some employees to feel pressured into signing up for the service. A Walmart employee based in Texas told Insider that earlier this week, an elderly customer who didn't speak much English came to them after they had received less change than expected through a self-checkout register. After reviewing their receipt, the employee realized that the customer had accidentally signed up for a Walmart+ membership for $49 when prompted by the self-checkout machine without realizing what they were signing up and paying for. The employee requested anonymity because they were concerned about repercussions from Walmart and because they weren't authorized to speak with the media. Insider has verified their identity. The employee posted their experience on Reddit. It has received 1,600 upvotes since it was uploaded, with other users recounting similar experiences at their stores. "It seemed to me that this was designed that way to make it super easy to accidentally or unknowingly add a subscription to your cart," the employee said. "There must be people out there somewhere who are accidentally paying for this Walmart Plus subscription, going home and not even realizing that they're out of $50 and they don't even know that they have a subscription." Two other Walmart employees, whose identities have been verified by Insider, said that they had concerns over the prompt being available only in English — which could prompt confusion among customers who don't read English fluently. Walmart is providing refunds for accidental purchases The promotions on self-checkout registers originally were slated to end when stores closed on July 13. Customers who wish to receive a refund can do so at a Walmart store or online. Insider visited a Walmart location in Wisconsin and bought a $2.28 Snickers bar at self-checkout. Upon pressing the Pay button, a prompt appeared on the screen offering a $49 Walmart+ membership with the options "Not interested" and "Add membership to cart." Selecting the latter option brought the subtotal to $51.28, plus tax, and activated the credit card terminal where the transaction was completed. Another prompt appeared, indicating that a code on the receipt would be needed to activate the account online. Insider then took the receipt directly to the customer service desk where a full refund for the $49 charge was processed in about two minutes. Are you a Walmart employee or a shopper with a story to share? Contact Yeji Lee via email.
Twitter owes ex-employees $500 mln in severance, lawsuit claims 2023-07-12 - [1/2] Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo July 12 (Reuters) - Twitter Inc on Wednesday was hit with a lawsuit accusing it of refusing to pay at least $500 million in promised severance to thousands of employees who were laid off after Elon Musk acquired the company. Courtney McMillian, who oversaw Twitter's employee benefits programs as its "head of total rewards" before she was laid off in January, filed the proposed class action in San Francisco federal court. McMillian claims that under a severance plan created by Twitter in 2019, most workers were promised two months of their base pay plus one week of pay for each full year of service if they were laid off. Senior employees such as McMillian were owed six months of base pay, according to the lawsuit. But Twitter only gave laid-off workers at most one month of severance pay, and many of them did not receive anything, McMillian claims. Twitter laid off more than half of its workforce as a cost-cutting measure after Musk acquired the company in October. Twitter no longer has a media relations department. The company responded to a request for comment with a poop emoji. The lawsuit accuses Twitter and Musk of violating a federal law regulating employee benefit plans. Twitter has already been sued for allegedly failing to pay severance, but those cases involve breach of contract claims and not the benefits law. The company has said it has paid ex-employees in full. A pending lawsuit filed last month accuses Twitter of also failing to pay millions of dollars in bonuses it owes to remaining employees. Twitter has said the claims lack merit. The company is also facing a series of other lawsuits stemming from the layoffs that began last year, including claims that it targeted women and workers with disabilities. Twitter has denied wrongdoing in the cases in which it has filed responses. Reporting by Daniel Wiessner in Albany, New York, Editing by Alexia Garamfalvi and Bill Berkrot Our Standards: The Thomson Reuters Trust Principles.