|
Autos – Emerging Asian carmakers have double the profit margin of the big US makers
China – The stock market bubble looks a lot like Nasdaq in 2000 Iran – Oil analysts say exports could surge 60% within a year after sanctions are lifted Air – China is boosting its number of airports by a fifth to meet booming demand |
Daily Intelligence Briefing - July 2, 2015
Today’s Issue Cluster: Autos
Best of the Rest
China – The stock market bubble looks a lot like Nasdaq in 2000
Iran – Oil analysts say exports could surge 60% within a year after sanctions are lifted
Air – China is boosting its number of airports by a fifth to meet booming demand
Today’s Issue Cluster: Autos
- Regulators say improved technology and lighter materials mean US makers can meet the 2025 emissions targets without electrics cars
- US makers are boosting sales of basic cars to rental fleets to keep factories lines busy rather than cut production of unpopular models
- Emerging Asia automakers have profits that are a third higher than in the US with double the profit margins
- China's car sales are still slowing, particularly in the west and particularly for luxury ... Europe's pickup isn't enough of an offset
- India's latest mini-truck doubles as a diesel power generator
- Russia's Lada is picking up market share as foreign makers downshift ... overall sales are still slumping
Best of the Rest
China – The stock market bubble looks a lot like Nasdaq in 2000
Iran – Oil analysts say exports could surge 60% within a year after sanctions are lifted
Air – China is boosting its number of airports by a fifth to meet booming demand
Recent reports
MRP's roster of Active Themes
MRP's latest monitors: Macro, Sector, and Country
Joe McAlinden's Market Viewpoint
- Affirming MRP's Long on Aerospace and Defense
- Coal is still in the pits, closing the short on drillers, and affirming the long of refiners
- The UK election's investment implications: going long homebuilders
- Launching Mortgage Servicing
- China's stocks and economy diverge
MRP's roster of Active Themes
MRP's latest monitors: Macro, Sector, and Country
Joe McAlinden's Market Viewpoint
| MAJOR DATA POINTS | Top |
US – May: Factory orders fall on transportation; -1.0% from -0.7% / R / AP
US – Jun: Jobs Market Continues Fitful Recovery; +223k from +254k (was +280k) / WSJ / R / NYT / FT
US – Week: Jobless Claims Rise; +10k to 281k / WSJ
| MARKETS | Top |
China – Weighs Options to Stem Market Rout
Chinese regulators are digging through their playbook to prop up a floundering stock market as fears of a market collapse are taking priority over other economic concerns.... The Finance Ministry is now looking at lowering the stamp duties on stock sales, according to people with knowledge of the matter, a move last used during the global financial crisis in 2008... Gavekal Dragonomics estimates that the financial sector contributed 1.4 percentage points to China’s economic growth in the first quarter —double its typical contribution and largely due to the bull market. WSJ
Official margin lending through securities brokerages peaked at Rmb2.3tn ($371bn) on June 19, up from just Rmb403bn a year earlier. Goldman Sachs estimates such lending equals 12 per cent of the free-float market capitalisation of margin-eligible stocks, and 3.5 per cent of gross domestic product, “both of which are easily the highest in the history of global equity markets”.
But even that figure fails to capture the full extent of leveraged stock investing. In addition to brokerages, grey-market margin lending through third parties has pumped an additional Rmb500bn to Rmb1tn in borrowed money into the market, according to estimates from Haitong Securities. FT
*
Official margin lending through securities brokerages peaked at Rmb2.3tn ($371bn) on June 19, up from just Rmb403bn a year earlier. Goldman Sachs estimates such lending equals 12 per cent of the free-float market capitalisation of margin-eligible stocks, and 3.5 per cent of gross domestic product, “both of which are easily the highest in the history of global equity markets”.
But even that figure fails to capture the full extent of leveraged stock investing. In addition to brokerages, grey-market margin lending through third parties has pumped an additional Rmb500bn to Rmb1tn in borrowed money into the market, according to estimates from Haitong Securities. FT
*
China – Firms Discover Margin Lending’s Downside
Because the government or holding companies own the majority of the shares in many businesses, the free float, or number of shares that trade on the market, is relatively small for many Chinese stocks. ... The volatility is magnified when investors use borrowed money to buy shares because brokers can call in some of these margin loans when markets head south... Margin lending is up fivefold in China over the past year, with much of that cash flowing into the hottest stocks. Now, those shares are facing steep declines. WSJ
*
*
China – Equity bubble has echoes of Nasdaq in 2000
It is not just that both sped up as they inflated, or that private investors piled in, or that money was easy. These features are common to bubbles across the centuries. Both had a wave of IPOs as companies tried to take advantage of seemingly insatiable demand for overvalued stocks, too, but high prices always generate their own supply. The most surprising similarity is the level of the index itself, with the Nasdaq’s dotcom peak of 5,133 just below the Shanghai Composite’s recent high of 5,178, and the rise in the two remarkably close. FT
economic consultancies are refining their attempts to measure Chinese growth... Lombard Street Research of London found a 0.2 per cent fall for the economy in the first quarter compared with the last quarter of 2014. Its measure of China’s real demand shows an outright fall of more than 2 per cent. Fathom Consulting gauges growth using the yardsticks that are hardest to obfuscate, such as electricity generation. On this basis, it projects that China is only growing at 2.8 per cent, and heading for an annual decline of as much as 2 per cent. Bear in mind that a “hard landing” is generally regarded as anything under about 6 per cent. FT
*
economic consultancies are refining their attempts to measure Chinese growth... Lombard Street Research of London found a 0.2 per cent fall for the economy in the first quarter compared with the last quarter of 2014. Its measure of China’s real demand shows an outright fall of more than 2 per cent. Fathom Consulting gauges growth using the yardsticks that are hardest to obfuscate, such as electricity generation. On this basis, it projects that China is only growing at 2.8 per cent, and heading for an annual decline of as much as 2 per cent. Bear in mind that a “hard landing” is generally regarded as anything under about 6 per cent. FT
*
| POLITICS & FISCAL POLICY | Top |
Iran – Investors Eyeball Iran Market
Iran’s $100 billion stock market is a major focus, given that there is no limit on foreign investment and they view it as severely undervalued. What’s more, there are more than 300 companies listed on the Tehran exchange, many of which have accumulated management expertise and resilience from years of trying to grow in the face of sanctions... Companies listed on the Tehran exchange are worth about 28% of the country’s gross domestic product, a lower ratio than most of the largest emerging markets. WSJ
fund flows may not all be in one direction. Money effectively trapped in Iran by the sanctions could exit to historically popular destinations such as the United Arab Emirates once bank lines are unblocked. Those stock markets have done well, partly from the anticipation of outflows from Iran. FT
fund flows may not all be in one direction. Money effectively trapped in Iran by the sanctions could exit to historically popular destinations such as the United Arab Emirates once bank lines are unblocked. Those stock markets have done well, partly from the anticipation of outflows from Iran. FT
Iran – Eyes $100b of investment in oil industry
Iran is finalising a contract system to secure about $100bn of new oil and gas deals with western companies if sanctions are lifted... a big shift for a regime traditionally wary of of foreign groups participating in its energy sector. FT
Iran’s energy sector needs at least $185 billion in investment over the next six years, said Amir Zamaninia, a senior deputy oil minister WSJ
*
Iran’s energy sector needs at least $185 billion in investment over the next six years, said Amir Zamaninia, a senior deputy oil minister WSJ
*
Iran – European oil majors hold Tehran talks
Executives from Royal Dutch Shell and Eni have met Iranian officials in Tehran to discuss investing in the country’s energy industry, the first time international oil groups have publicly confirmed such talks ahead of a possible nuclear deal with the west. FT
Iran – Oil exports could jump by 60% in a year
A poll of 25 oil analysts from leading banks and brokerages forecast Iran would be able to raise crude oil output by between 250,000 and 500,000 barrels per day (bpd) by the end of this year and boost sales abroad by up to 750,000 bpd by mid-2016. That would push the Islamic Republic's total crude oil output to around 3.6 million bpd, its highest for four years, and would inflate Iranian exports by around 60 percent R
*
*
Iran – Maps out plans to revive economy when sanctions are lifted
In a rare interview, Valiolah Seif, the central bank governor appointed by Mr Rouhani, said the government was mapping out strategies to channel funds and accelerate development of key sectors, including oil and gas, tourism and IT... Mr Seif expects financial sanctions.... to be lifted a few months after a nuclear agreement. ... estimating that the removal of sanctions will not be felt before the Iranian year ends next March. FT
*
*
Iran – European groups rev up for return to Tehran
When western sanctions prevented PSA Peugeot Citroën from supplying cars to Iran three years ago, the French car manufacturer lost access to its second-largest market.... The sale of Peugeot branded cars remained mysteriously strong... as partners which had once constructed the cars locally from Peugeot kits appeared to source components from elsewhere....
Peugeot is just one of a number of European companies — including many in industry, energy and finance — poised to get back into Iran... Some of Europe’s biggest groups are already preparing the ground, with energy seen as one of the most promising sectors. FT
* 
*
Peugeot is just one of a number of European companies — including many in industry, energy and finance — poised to get back into Iran... Some of Europe’s biggest groups are already preparing the ground, with energy seen as one of the most promising sectors. FT
* *
Iran – Should Russia and China expect an arms bonanza?
Whatever is formally agreed, it seems likely that the international legitimacy that Iran expects to gain from a nuclear deal will give it growing access to military technology from both Russia and China, Iran’s biggest trading partner, if not from the West (neither America, Britain nor France will jeopardise their lucrative weapons contracts with Gulf Arab states). ...
its conventional military capabilities are relatively feeble.... Iran’s air force is antiquated, consisting mainly of American aircraft bought by the Shah... only about half are serviceable. Although large, its poorly equipped land forces, split between the regular army and the Iranian Revolutionary Guard Corps (IRGC), are structured to prevent coups and conduct irregular warfare against an aggressor, rather than to threaten neighbours.... To compensate for this weakness Iran, with Chinese and North Korean help, has acquired considerable missile know-how E
*
its conventional military capabilities are relatively feeble.... Iran’s air force is antiquated, consisting mainly of American aircraft bought by the Shah... only about half are serviceable. Although large, its poorly equipped land forces, split between the regular army and the Iranian Revolutionary Guard Corps (IRGC), are structured to prevent coups and conduct irregular warfare against an aggressor, rather than to threaten neighbours.... To compensate for this weakness Iran, with Chinese and North Korean help, has acquired considerable missile know-how E
*
| MONETARY POLICY | Top |
Fed – Looming Problem: Too Little Debt
the supply of new government debt is low. Net issuance of long-term Treasurys over the past year—that is, debt issued less debt maturing or otherwise coming off the market—has averaged about $50 billion a month over the past year. Nor does it look likely to head higher.... In Japan, the euro area and the U.K., net debt issuance is even lower.... Bank of Japan and ECB bond purchases exceed net long-term government debt issuance in Japan, the euro area, the U.K. and the U.S. combined.
That creates a potentially troubling dynamic for the Fed as it looks to bring an era of near-zero interest rates to an end. The central bank is on course to start raising short-term rates later this year. The expectation would be that long-term Treasury yields would move higher, too. But they may make only halting gains. WSJ
*
That creates a potentially troubling dynamic for the Fed as it looks to bring an era of near-zero interest rates to an end. The central bank is on course to start raising short-term rates later this year. The expectation would be that long-term Treasury yields would move higher, too. But they may make only halting gains. WSJ
*
Fed – Inflation Undershoots 2% Target for 37th Month
for the 37th consecutive month, annual inflation undershot the central bank’s 2% target. Prices rose just 0.2% in May from a year earlier, unchanged from April, and growth in core prices slipped to 1.2% in May from 1.3% the prior month. wsj / WSJ
*
*
| MANUFACTURING | Top |
Autos – US: Chrysler Hits Retail Milestone, Tops Ford
Fiat Chrysler... sold 146,151 vehicles on a retail basis, likely representing the first time it outpaced Ford in the closely watched portion of the monthly sales that are sold to individual consumers at dealerships. Overall, Ford solidly outpaced its smaller rival...
Fiat Chrysler spent an average of $3,382 in incentives on each vehicle sold, compared with Ford’s $2,595.... One of the reasons incentives are low is because Ford’s inventories are light, particularly as its highest-volume product, the F-150 pickup truck, is making an abnormally long transition from a steel-bodied version to aluminum. WSJ
*
Fiat Chrysler spent an average of $3,382 in incentives on each vehicle sold, compared with Ford’s $2,595.... One of the reasons incentives are low is because Ford’s inventories are light, particularly as its highest-volume product, the F-150 pickup truck, is making an abnormally long transition from a steel-bodied version to aluminum. WSJ
*
Autos – US: Industry Develops a Weak Spot
Retail demand for bread-and-butter passenger cars... has softened amid lower gasoline prices. This is leading high-volume auto makers to send more of these types of cars to rental car fleets, a practice that keeps production lines humming but can dent resale values and clip margins. About 21% of the compact cars and 20% of the midsize cars sold during the first quarter ended up in daily rental fleets, up from about 17% in the same period a year earlier...
Fleets have historically offered auto makers a dumping ground for less popular models. Detroit auto makers were often criticized for using these sales as a way to support the production of cars that real buyers didn’t want to own, and now—as the practice is reviving—import brands are also using the strategy. The pressure to sell cars to daily rental companies could intensify as new plants in North America add more production capacity over the next few years. WSJ
*
Fleets have historically offered auto makers a dumping ground for less popular models. Detroit auto makers were often criticized for using these sales as a way to support the production of cars that real buyers didn’t want to own, and now—as the practice is reviving—import brands are also using the strategy. The pressure to sell cars to daily rental companies could intensify as new plants in North America add more production capacity over the next few years. WSJ
*
Autos – US: Fuel Economy Targets May Be Less of a Stretch
innovations in engine technology and lighter, yet stronger materials are likely to power the entire auto industry as it strives to meet the looming 2025 fuel economy standards, a sweeping new report commissioned by the National Highway Traffic Safety Administration has found.... hitting those fuel targets of a corporate average of 54.5 miles per gallon could most likely be done without as much difficulty as the industry had feared. ...
While the study focused primarily on midsize vehicles, it concluded that existing technology like 8-speed transmissions, advanced turbochargers and lighter materials were most likely enough, on their own, to allow automakers to meet the 2025 standards. Electric or fuel-cell vehicles might still be bonuses for automakers, but they were unlikely to be necessary to reach the goal. NYT
While the study focused primarily on midsize vehicles, it concluded that existing technology like 8-speed transmissions, advanced turbochargers and lighter materials were most likely enough, on their own, to allow automakers to meet the 2025 standards. Electric or fuel-cell vehicles might still be bonuses for automakers, but they were unlikely to be necessary to reach the goal. NYT
Autos – Asia: Car Makers Out-Earn US Rivals
Top auto makers in China and India earned 37.5% more profit excluding preferred dividends in fiscal 2014 than their U.S. counterparts, joining European and Japanese auto companies in out-earning the Detroit Three, said AlixPartners LLP.... emerging Asian auto makers last year generated margins that were about double those of General Motors Co. , Ford Motor Co. and Fiat Chrysler Automobiles NV’s Chrysler unit...
The trend raises questions about the global competitiveness of GM, Ford and Fiat Chrysler on the eve of labor negotiations with the United Auto Workers union and amid an aggressive push by Fiat Chrysler Chief Executive Sergio Marchionne for industry consolidation. WSJ
*
The trend raises questions about the global competitiveness of GM, Ford and Fiat Chrysler on the eve of labor negotiations with the United Auto Workers union and amid an aggressive push by Fiat Chrysler Chief Executive Sergio Marchionne for industry consolidation. WSJ
*
Autos – World: Profits of Manufacturers / dv
*
Autos – China: Europe’s premium makers warned ‘cash cow is dying’
the premium automakers have been vocal in their warnings of declining returns in China, against the backdrop of a slowing economy, limits on car ownership in big cities and rising competition from cheap and cheerful domestic brands. According to one Chinese dealer representative: “the cash cow is dying”.... The China Association of Automobile Manufacturers, a domestic lobby group, reported last week that overall passenger car sales in the country rose just 1.2 per cent in May. FT
Autos – China: Car Sales Slow in the West
first-quarter sales across 12 western provinces grew about 12% from a year earlier to 1.2 million vehicles. That gain trails a 15% rise over the same period for the country as a whole, and represents a shift from a year ago, when western provinces outgrew the rest of the country.... Luxury-car sales appear to be faring even worse. WSJ
*
*
Autos – India: Eicher Motors unveils truck that doubles as a generator
India’s Eicher Motors is launching a cheap diesel-powered pick-up truck aimed at small-business owners that doubles as a miniature power station, capable of lighting up a home during the country’s frequent electricity cuts.... the latest of a wave of initiatives by auto groups to create vehicles suitable for thriftier consumers in emerging markets.... More than 300m Indians have no reliable access to electricity FT
*
*
Autos – Russia: Lada revs up as sales reverse off a cliff
Russian car sales, after falling 10 per cent last year, have plunged almost 40 per cent in the first five months of this year — threatening a re-run of the 2009 collapse, when car sales halved in the country. Avtovaz, which is controlled by the Renault-Nissan alliance and holds its annual meeting on Thursday, fears the result could be a lost decade for the car industry in Russia....
International carmakers operating in Russia have already been reconsidering their investments in the country.... Avtovaz’s market share gains have come as former Opel and Chevrolet dealers switch to selling Ladas: the brand’s share in Russia is on the up for the first time in 21 years, rising about 2.5 percentage points to almost 19 per cent in the early part of 2015. Still, that remains a long way off the 90 per cent market share Lada had in 1998 FT
*
International carmakers operating in Russia have already been reconsidering their investments in the country.... Avtovaz’s market share gains have come as former Opel and Chevrolet dealers switch to selling Ladas: the brand’s share in Russia is on the up for the first time in 21 years, rising about 2.5 percentage points to almost 19 per cent in the early part of 2015. Still, that remains a long way off the 90 per cent market share Lada had in 1998 FT
*
Autos – EVs: Electric car sales ready to move out of the slow lane
some carmakers are increasingly confident that their electric vehicles are close to overcoming the dreaded “range anxiety”....
Electric, hybrid and hydrogen fuel-cell vehicles are expected to register a 30 per cent increase in European sales in 2015 ... this demand is coming off a low base... The Europe-wide figures also mask wild variations. In Norway, for instance, electric vehicles and plug-in hybrids accounted for a third of all car sales in the first quarter of 2015... because of high import tariffs on petrol vehicles. In Germany, by contrast, just 25,000 electric vehicles have hit the autobahn so far, despite the government’s target of 1m plug-in sales by 2020. FT
*
Electric, hybrid and hydrogen fuel-cell vehicles are expected to register a 30 per cent increase in European sales in 2015 ... this demand is coming off a low base... The Europe-wide figures also mask wild variations. In Norway, for instance, electric vehicles and plug-in hybrids accounted for a third of all car sales in the first quarter of 2015... because of high import tariffs on petrol vehicles. In Germany, by contrast, just 25,000 electric vehicles have hit the autobahn so far, despite the government’s target of 1m plug-in sales by 2020. FT
*
| TRADE & TRANSPORTATION | Top |
Air – Justice Department Probes Airlines for Collusion
The Justice Department is investigating whether U.S. airlines colluded on expansion plans... The four largest U.S. airlines— American Airlines Group Inc., United Continental Holdings Inc., Delta Air Lines Inc., and Southwest Airlines Co. —confirmed that they are part of the probe and said they are cooperating....
The airline investigation comes amid aggressive moves by U.S. antitrust officials in a number of recent high-profile deals that are part of a boom in mergers and acquisitions. Within hours of confirming the airline probe, the department separately Wednesday filed a lawsuit seeking to block Electrolux AB’s proposed $3.3 billion acquisition of General Electric Co. ’s appliance business. WSJ
In letters sent to airlines, prosecutors have asked for documents from the last two years related to statements and decisions they have made about limiting capacity on flight routes. By making it harder for passengers to find seats, airlines could restrain competition and increase fares. “We are investigating potential unlawful coordination among some airlines,” said Emily Pierce, a Justice Department spokeswoman. NYT / R
The DoJ’s potential case was civil rather than criminal, and would consequently be easier to prove, said Carl Tobias, a law professor at the University of Richmond. Companies facing antitrust suits of the kind the DoJ investigation could produce often reach settlements with the government, pay fines and agree to restraints. FT
*
The airline investigation comes amid aggressive moves by U.S. antitrust officials in a number of recent high-profile deals that are part of a boom in mergers and acquisitions. Within hours of confirming the airline probe, the department separately Wednesday filed a lawsuit seeking to block Electrolux AB’s proposed $3.3 billion acquisition of General Electric Co. ’s appliance business. WSJ
In letters sent to airlines, prosecutors have asked for documents from the last two years related to statements and decisions they have made about limiting capacity on flight routes. By making it harder for passengers to find seats, airlines could restrain competition and increase fares. “We are investigating potential unlawful coordination among some airlines,” said Emily Pierce, a Justice Department spokeswoman. NYT / R
The DoJ’s potential case was civil rather than criminal, and would consequently be easier to prove, said Carl Tobias, a law professor at the University of Richmond. Companies facing antitrust suits of the kind the DoJ investigation could produce often reach settlements with the government, pay fines and agree to restraints. FT
*
Air – The Next Frontier in Baggage: Digital Bag Tags
Their latest ideas including letting fliers tag their own bags, print luggage tags at home and track their bags on smartphones. Later this year, some fliers in Europe likely will begin using what could be the future of flying luggage: permanent bag tags that digitally update if flight plans change. Improved technology and loosened security rules are accelerating changes to baggage handling....
“It’s a bit of a baggage revolution,” said Ryan Ghee, editor of the Future Travel Experience, a website on advances in commercial flying. “Normally you have one [change in] development, but it’s all going on at once.” WSJ
*
“It’s a bit of a baggage revolution,” said Ryan Ghee, editor of the Future Travel Experience, a website on advances in commercial flying. “Normally you have one [change in] development, but it’s all going on at once.” WSJ
*
Air – China’s aviation boom drives airport building frenzy
Mangshi is one of more than 60 inland airports under expansion, with another 30 new regional airports being built. Government planners estimate China's airports will increase to 240 by 2020 from around 200 today... The number of leisure travelers going overseas for the first time topped 100 million in 2014... Foreign travel is tipped to grow another 10 percent this year as the United States, France and Australia ease visa policies.... China's so-called Silk Road initiative is also certain to boost traffic. R
Air – Airports Commission recommends third Heathrow runway
Sir Howard insisted that expansion at Heathrow — at £17.6bn the most expensive and politically contentious of the three options shortlisted last year — would deliver the greatest benefits to the UK.... The panel left little room for the government to opt for the politically less contentious expansion of Gatwick. Sir Howard said Gatwick’s proposal was “plausible” but that failure to expand Heathrow put the UK’s aviation sector at risk of losing out to continental Europe. FT
The new runway could open by 2026 if the government backs the recommendation quickly WSJ
*
The new runway could open by 2026 if the government backs the recommendation quickly WSJ
*
| COMMODITIES | Top |
Crops – Corn, Soybeans Rise on Smaller-Than-Expected Stockpiles
Corn and soybean prices surged to their highest levels in months after the government estimated growers had planted less than analysts expected and that less of it is held in stockpiles, extending a recent rally in grain prices. WSJ
*
*
Crops – Wheat Prices Up on Heavy Rains
Many forecasters as recently as the start of this month were predicting continued softness in wheat prices, but in the past two weeks up to six times the normal amount of rain has fallen in parts of the U.S. Midwest... The wet weather is stalling the harvest of soft red winter wheat, which is grown mostly in states that flank the Mississippi River and is used to make pastries and snacks. WSJ / FT
*
*
Crops – Meat eating set to drive growth in grain demand
During the past 10 years feed use has accounted for 36 per cent of the growth in consumption of coarse grains. But in the next 10 years “feed demand will constitute almost 70 per cent” of the use of coarse grains (cereals other than wheat and rice), according to the annual OECD-FAO agricultural outlook.... Grains accounted for only a 10th of overall cereal use during 2012-14, while in developing countries the figure was 60 per cent FT
Crops – Deere, Potash Face a Glutted Market
It is a tale familiar to iron-ore miners and oil drillers. A decade or so of high prices on the back of rampant demand encouraged more investment in supply that is now bearing fruit even as consumption cools. Last year saw record harvests for maize, wheat and oilseeds.. Farm incomes now face a structural headwind. In its latest survey of land values, Farmers National Company found they were flat or down in 15 out of 18 states in June compared with a year ago. This is bad news for companies supplying farmers. WSJ
| ENDNOTES | Top |
Different US regions favor different types of stocks
Openfolio, an app that allows people to share investment portfolios, compiled data from its more than 40,000 subscribers and found some surprising regional bias in people's stock-picking preferences.... West Coast investors are 10% more likely than average to invest in the tech industry. ... Investors living near the banking centers in the Northeast are 23% more likely to own financial stocks than those in the Midwest... The South, home to large amounts of the country's oil reserves, favors energy stocks bi
*
*
Warren Hatch, PhD, CFA
Portfolio Management and Global Investment Strategy
McAlinden Research Partners
Follow me on Twitter
Follow MRP on Twitter
The information provided in this presentation (the "Report") is not to be reproduced or distributed to any other persons. This Report has been prepared solely for informational purposes and is not an offer to buy/sell/endorse or a solicitation of an offer to buy/sell/endorse Interests or any other security or instrument or to participate in any trading or investment strategy. No representation or warranty (express or implied) is made or can be given with respect to the sequence, accuracy, completeness, or timeliness of the information in this Report. Unless otherwise noted, sources for public data include Bloomberg, Trading Economics, and FRED (Federal Reserve Bank of St. Louis Economic Data). McAlinden Research publishes daily, weekly, and other periodic reports on the economy and the markets. Catalpa Capital Advisors, LLC (CCA) is a Registered Investment Advisor which manages client accounts. References to specific securities, asset classes and financial markets discussed herein by McAlinden Research are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. Securities discussed in the Report may or may not be held in accounts managed by CCA and/or its associated persons, and changes in those accounts may be made at any time without notice to its subscribers. Neither McAlinden Research nor CCA is under an obligation to inform research recipients if any accounts managed by CCA subsequently purchase or sell securities discussed by McAlinden Research and they do not anticipate providing such information.
230 Park Avenue | New York, NY 10169 | (212) 231-8701 | Inquiries: nelly@mcalindenresearch.com
RSS Feed
