Wednesday, July 31, 2013

Voices and Trends in International Business-July 31,2013

Moving boxes and branded food boxes are in demand,said John Faraci,CEO of International Paper.In China,our export customers are weak.Our domestic business there is strong as the middle class expands.*What we really look for in a company is investor interest and the overall quality of the company,said Candace Browning,research director at Bank of America-Merrill Lynch.Investors jump from one theme to another fairly quickly.The current themes are 1.the move from fixed income to equities 2.Europe is coming back.So much of the innovation we produce is from immigrants.We are innovation nation,and we don't talk about it enough or look for it enough in research.*I'm raising my price target on Amazon,said CNBC analyst Jim Cramer.They're talking world domination.I swear by Amazon.I love the product;I want to own the stock.If you want to buy Spain,you have to spend some money-referring to the fact that Amazon missed its earnings estimate on rising expenses,the expense of broadening their overseas business.*Canada's Hudson's Bay Company is now buying American luxury retailer Saks,Inc for about 2.4 billion dollars.They had previously purchased upscale US department store chain Lord&Taylor.*Peugeot,the second largest automaker in Europe,reported a narrower than expected loss on cost cuts.*International Paper(IP);Amazon Inc(AMZN);Hudson's Bay Company(TSX:HUD)

Wednesday, July 24, 2013

Asset Management:Inflows and Strategy

We had 8 billion of equity inflows in Q2,said Larry Fink,CEO of BlackRock,the world's largest asset manager.I do think for those investors overweight in bonds,I recommend moving some of it into equities,looking at your bond portfolio and moving it from your core strategy into unconstrained strategies.Expect to see tens of billions move to unconstrained bond funds. As more and more moves into etfs,we are gonna be lowering our fees.As of yesterday,we saw 6 billion of inflows into etfs this month.The market has come a long ways.We've seen some very good earnings,but I would never be surprised to see a 5% correction.I look at it as a buying opportunity. We own 5% of PepsiCo.We think Indra Nooyi is doing a very good job.We are very happy with her imaginative team and strategy. I think the Fed will move to a change of policy in the next six months.We should all be prepared.For investors focused on the long term,whether it's in September or December isn't important.We're gonna see a shrinkage of Treasury borrowing for the next five years,with as high as a 5% ten year by 2015,Larry Fink projected. PepsiCo(PEP),BlackRock(BLK)

Meeting Arctic missions

Meeting Arctic missions

Wednesday, July 17, 2013

News Notes:Citi's Internet Calls;Best Investment Banks 2013

The IMF has reduced its estimate of world growth to 3.1%,down from 3.3% in April.For 2014,it sees China growth at 8.2% and India at 6.2%. Citigroup has initiated coverage of major Internet stocks.LinkedIn,Netflix and Facebook are rated neutral. Facebook is a relatively young company going through a transition,said Citi analyst Mark May.Amazon,Google,eBay and AOL are buys.Yelp is a sell. Key Internet themes are the shift from PCs to mobile;the emergence of adtech;and the proliferation of data. The US-China Strategic and Economic Dialogue has begun,led by Secretary of State John Kerry.BMW sees China as its top 2013 market,based on its growth in small cities. GE Oil and Gas is establishing its global headquarters in London. Global Finance magazine has named its Best Investment Banks 2013.Global winners include J.P.Morgan,Best Investment Bank;Bank of America Merrill Lynch,Best in Emerging Markets;Qatar National Bank,Best in Frontier Markets;and Goldman Sachs,Best M&A Bank. Global Finance said J.P.Morgan grew market share across the board because of its loyal client base;a long term startegy of embracing regulatory reform;a legendary corporate lending legacy;and the integration of equity underwriting talent from Bear Stearns,which it acquired in 2008. It made a world-leading 465 billion dollars for its clients through 2,164 bond deals;and earned more than 5.6 billion in investment banking fees,the best in class. JP Morgan Chase(JPM),Amazon(AMZN),Goldman Sachs(GS)

Wednesday, July 10, 2013

Voices and Trends in Global Business,July 2013

Apple has been slowing iPhone production,said Brian Blair,a senior research analyst at Wedge Partners.We believe there's been a 20% haircut to iPhone production.Most of the component suppliers will stay the same,despite the cuts. Apple's been cutting because they've been watching market leader Samsung,which hasn't been selling as many smart phones as they thought they would.The market for high end smart phones is slowing,and Apple's been responding to that. The IMF has cut its annualised global growth forecast from 3.3% in April to 3.1% in July.Their forecasts for commodity prices,as well as Russian,Brazilian and Spanish growth,were also lowered.The cause of the revision is the downturn in emerging markets and the lengthy Euro-zone recession. Hong Kong property agents marched against government price curbs over the weekend.Up to 5500 agents demonstrated,appalled at the fact that Q2 real estate transactions were at a two decade low because of new taxes and marketing restrictions.About a third of estate agents stand to lose their jobs in consequence. The government measures are making things worse,according to Michael Kilbaner of Jones Lang Lasalle.The rise in property prices both reflects and impacts the strength of the economy.A lot of the movement is really in tier one and upper echelon tier two property.A two bedroom flat in Hong Kong goes for a half million US dollars,with a similar price in Beijing.

Police: Brothers From India Left NJ Tour To Stay In US « CBS New York

Police: Brothers From India Left NJ Tour To Stay In US « CBS New York

Wednesday, July 3, 2013

The Goldman Sachs Playbook

The market thought the falling price of gold was an avalanche,but that's not necessarily the case,said Goldman Sachs CEO Lloyd Blankfein.As confidence in the currencies and the economy grows,it's not advantageous to invest in gold,so we had a sell-off.
One of the things we'e looking for is the infrastructure and commitment to deliver those services and elements of our 10,000 Small Businesses program.In New Orleans,we have a great community college partner in Delgado.It's a mini-MBA,with mentors and access to small capital at the end.
For example,we have a small tool business and a caterer.They don't have the tools for analysing their business and haven't been to accounting schools.They dedicate their weekends to the program,learning analysis,negotiation and business planning.Most of these people end up hiring new workers because of the program.
It's market sentiment in a lot of cases.We've chewed through a lot of problems.I'm in the risk management business,but we're muddling through,and I think we're in a good part of the cycle.The trauma was big.
It's a confidence thing.The penalty for making a mistake is very great at this point.People aren't gonna take risks.We will get there,but I think sentiment and people's feelings really matter.
I'm not sure we're in the right place with regulation.We shouldn't be burdening some of these small banks.In industries like our own,growth is the correlant for our success-and it's global growth.
The US is still the best place to invest.If you want to invest in the most valuable thing-your career-the US is the best place to do that.
The second half playbook is industrials.They do well in this environment.When you listen to such as Boeing's Jim McNerney,you feel confident.This is their time,Goldman CEO Lloyd Blankfein observed.
Newsletter publisher Dennis Gartman  of "The Gartman Letter" has just turned bullish on gold,citing the overwhelmingly negative sentiment against it as a signal to buy the precious metal..
Goldman Sachs(GS),Boeing(BA)