Profit rate – Stormbirds http://stormbirds.net/ Mon, 26 Sep 2022 02:37:11 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://stormbirds.net/wp-content/uploads/2021/07/icon-2021-07-05T151758.466-150x150.png Profit rate – Stormbirds http://stormbirds.net/ 32 32 Keir Starmer pledges to restore top income tax rate to fund public services | Work https://stormbirds.net/keir-starmer-pledges-to-restore-top-income-tax-rate-to-fund-public-services-work/ Sun, 25 Sep 2022 23:18:00 +0000 https://stormbirds.net/keir-starmer-pledges-to-restore-top-income-tax-rate-to-fund-public-services-work/ Keir Starmer is seeking to draw new battle lines with Liz Truss as he pledges to restore the top rate of income tax and funnel the resulting billions into the NHS and other public services. The Guardian understands that Labor will explain in more detail on Monday how it would use the money raised by […]]]>

Keir Starmer is seeking to draw new battle lines with Liz Truss as he pledges to restore the top rate of income tax and funnel the resulting billions into the NHS and other public services.

The Guardian understands that Labor will explain in more detail on Monday how it would use the money raised by reversing the abolition of the 45p rate outlined by Chancellor Kwasi Kwarteng in Friday’s mini budget.

Shadow Chancellor Rachel Reeves will argue at the party conference that investing in public services such as the NHS, schools and childcare is the only way to lay the foundations for a strong economy – which is what she warns that Truss is endangering.

She told the Guardian: “Liz Truss and I are not that different in age. We both went to our local public schools in the 80s and 90s. But the conclusions we came to after that experience seemed like a world apart. You cannot build a strong economy without strong public services.

On the first day of the Liverpool conference, Starmer said it was ‘extremely divisive’ for ministers to give a tax cut to people receiving more than £150,000, as he pledged to cancel the abolition of the additional rate on the highest incomes. . It could raise at least £2bn, and possibly much more, for public spending.

The Labor leader said he would not reverse the cut in the basic tax rate from 20% to 19% because the party wanted to ‘reduce the tax burden on workers’. But it put him on a collision course with Andy Burnham, the Mayor of Greater Manchester, who said Labor should oppose both tax measures.

Burnham said Labor should go further and reverse the base rate cut as well, because “I don’t think it’s the most targeted way” to help those struggling the most during the cost crisis. life.

“If you cut the rate by 20p, it’s not as targeted a measure as doing other things like supporting people who are at real risk, and those are people with universal credit,” a- he told Sky News’ Sophy Ridge on Sunday.

Meanwhile, Kwarteng hinted there was “more to come” from the government on tax cuts. “We have only been here 19 days. I want to see, over the next year, people keep more of their money,” he told BBC One on Sunday with Laura Kuenssberg.

The market’s shock reaction to Friday’s mini-budget continued into Sunday night as the pound hit a 37-year low. The pound fell to $1.077 in early trading as Asia-Pacific markets opened after the weekend, approaching parity with the US dollar.

In an interview ahead of his speech, Reeves compared and contrasted his own schooling in London with that of the new Prime Minister, who has come under fire for criticizing his state secondary school in Leeds. The phantom chancellor said she had lessons in prefabricated huts and there were not enough textbooks, but she had received a good education thanks to the commitment of her teachers.

“My lesson is not to cut public services or to say that the state must step aside, but to say that in order to have a strong and growing economy, public services are essential for that,” he said. she stated.

“You can’t have a strong economy unless young people get the skills and education they need. You can’t have a strong economy if parents aren’t supported by good childcare, especially moms, to get back to work.

“You can’t have a strong economy without a properly functioning NHS so that sick people have the opportunity to get back to work. It looked like a budget, but there was nothing in there for public services.

Reeves called on Kwarteng to present a full budget this fall rather than waiting until the end of the financial year next April to present its plans for public services.

She accused the Chancellor of “sitting on” the Office for Budget Responsibility’s draft growth forecasts and pledged to use all available tools, including the humble parliamentary address, to get them published.

“What do they have to hide? If there wasn’t something to hide, they would have released it alongside the flimsy document they released instead,” she said.

Reeves, a former Bank of England economist, said the Tories could achieve ‘a slight increase’ in growth with their plan to ‘throw’ £70billion into the economy, but she said that Labor would hold them to their promise of 2.5% sustainable growth across the country for years.

She said: “We should expect to feel the benefits of this growth next year. If their plan is so good, why not? They have set the bar at 2.5% and that is what we intend to enforce.

Labor backed Rishi Sunak’s plans to raise corporation tax from 19% to 25% which would still leave the UK mid-table out of the G7 countries and below France and of Germany. But she suggested a corporate rate reform would be a more useful policy, as it is currently being paid for by companies before they even make a profit.

She confirmed that Labor would vote against scrapping the cap on bankers’ bonuses in the House of Commons.

Reeves will also pledge that a Labor government will set up a state-owned investment fund if it wins the next general election.

She will say the fund would allow the state to invest directly in projects and create a return for taxpayers by investing in national programs such as battery plants and renewable energy-ready ports, as part of Labour’s mission to “build British industry”.

She will argue that the policy is a “real plan for the climate”, a “real plan for growth” and a “real plan for upgrading”. It would be funded by a national wealth fund, with the party’s Green Prosperity Plan, which was announced at the last Labor Conference, putting an initial £8.3billion into a central pot.

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PUC approves electricity rate hike after contentious hearing https://stormbirds.net/puc-approves-electricity-rate-hike-after-contentious-hearing/ Fri, 23 Sep 2022 21:56:34 +0000 https://stormbirds.net/puc-approves-electricity-rate-hike-after-contentious-hearing/ WARWICK, RI — State regulators on Friday approved one of the biggest power rate hikes in decades in the face of vocal opposition from advocates, community members and several elected officials. The Rhode Island Public Utilities Commission, which regulates all utilities in the state, unanimously passed the 47% electricity rate hike proposed by Rhode Island […]]]>

WARWICK, RI — State regulators on Friday approved one of the biggest power rate hikes in decades in the face of vocal opposition from advocates, community members and several elected officials.

The Rhode Island Public Utilities Commission, which regulates all utilities in the state, unanimously passed the 47% electricity rate hike proposed by Rhode Island Energy. Under the new rate, which will take effect on October 1, households will see their bills increase by an average of $50.76 per month.

A proposed hike in gas bills, which has yet to be reviewed by the PUC, would see an increase of around 15% from November.

PUC Chairman Ron Gerwatowski, who at one point temporarily suspended the meeting due to protests from the crowd gathered in the courtroom, informed the public that it might not be about the latest increase in utility prices.

“I hope everyone understands that we’re looking at a future in choppy waters, not just for this winter,” Gerwatowski said, “but the markets and the price of electricity in this region where we get our electricity from. are volatile and I think we’re going to face a lot of challenges in the region and here in Rhode Island.

Advocates from the George Wiley Center, the Poor People’s Campaign, the Sisters of Mercy and the RI Coalition to Reduce Poverty gathered for the second time in as many weeks Friday morning to protest Rhode Island Energy’s steep rate hike .

The mood on the steps of the PUC building took on the tenor of a stimulus meeting, as speakers implored the commission to deny the rate hike. Priests, organizers and community members invoked the scriptures, sang songs and chants and warned officials of the poverty that would ensue due to new utility bills.

“I don’t think the people in this room have heard us or understand the domino effect this will have,” said Pamela Poniatowski, an organizer with the Poor People’s Campaign. She continued, “The only way some people have the money to pay for this is to win the lottery.”

Utilities are overseen by the state Utilities Commission, which approves or denies proposed increases in utility rates. Chairman Ronald Gerwatowski and Commissioner Abigail Anthony await the start of Friday’s meeting. (Rob Smith/ecoRI News)

Warren resident Debbie Krauss told the crowd how expensive it was when her home had a power outage, estimating the value of spoiled food in her chest freezer at more than $500. “I didn’t want to lose the contents of my chest freezer and the freezer attached to it, and it happened every time [we lost power]. How about you pay me back first, how about that? »

Activists had gathered the previous week to testify to commissioners that people would have to choose between heating and electricity or other basic necessities like food, medicine or rent if the new tariff were approved.

Utilities justice advocates are calling for reform, demanding that the PUC cut Rhode Island Energy’s profit margin from 10% to 6%. They also demanded a Percentage of Income Payment Plan (PIPP), where low-income residents can pay a certain percentage of their income for their electricity bill instead of a flat rate, and for the commissioners to reject the rise.

“It’s the Public Utility Commission, not the Corporate Utility Commission,” said Rep. David Morales, D-Providence.

Protesters entered the building around 11:30 a.m. on Friday, shortly after commissioners began their meeting to vote on electricity rate hikes. As commissioners began the formal process of voting on their agenda, campaigners broke off the meeting, chanting for no further rate hikes. The meeting was quickly suspended, while protesters expressed their concerns, sometimes forcefully, to the remaining commissioners, John Revens and Abigail Anthony.

The commissioners stressed to the crowd that they were ultimately limited in their powers to reject the hike. Revens said opposing parties during the evidentiary process agreed that the utility acted correctly when formulating the new rates.

“They don’t buy [electricity] like when you go to the grocery store,” Revens said.

Gerwatowski restarted the meeting around 12:20 p.m. Police escorted half a dozen protesters for continuing to disrupt the meeting but made no arrests. Morales was taken away twice, the second time shouting “shame” to the commissioners.

Rhode Island utilities do not make a profit selling electricity to ratepayers. Under state law, the utility must supply electricity at the prices it paid—it legally cannot make a profit from the sale of electricity; the costs are passed on to the electricity and gas tariffs themselves.

Profit is instead made on the construction of new infrastructure such as power lines, natural gas lines or the connection of new gas lines in homes or businesses. The PUC defines what that profit can be every three to eight years.

The utility also offers rate changes twice a year, for summer and winter, with summer rates usually being cheaper than winter rates, due to lower electricity demand and gas.

Applying rate changes every six months provides some protection against natural gas price volatility, because although only about half of the state has a natural gas line for winter heating, all electricity subscribers primarily use natural gas. According to ISO-New England, the non-profit association that manages the Northeast’s electricity grid, 54% of all the energy consumed in the region comes from natural gas plants.

Rising natural gas prices – whether from supply shocks resulting from the Russian invasion of Ukraine or from increased global demand for the fossil fuel – drive up electricity.

Rhode Island Energy’s parent company, PPL Corporation, reported second-quarter earnings of $119 million in August and will pay a small quarterly stock dividend in the fall.

On Friday, commissioners approved relief for low-income taxpayers. The PUC gave Rhode Island Energy the go-ahead to distribute $32.5 million in electric bill credits and an additional $17.5 million in gas bill credits. The credits were part of the multimillion-dollar settlement agreement reached between the attorney general’s office and the PPL Corporation before it could purchase Rhode Island’s utility assets from National Grid. Invoice credits should be applied by the company in November or December.

The PUC also approved Governor Dan McKee’s allocation of $3.8 million in Regional Greenhouse Gas Initiative (RGGI) funds to provide relief to low-income taxpayers. The governor estimated the funds would provide direct tariff relief to 39,000 Rhode Islanders.

“We have effectively eliminated the impact for our most vulnerable constituents, and they will see no increase in their overall electricity bills compared to last winter,” the governor said in a statement.

Earlier this month, Rhode Island Energy got the green light from state regulators to write off more than $47 million in arrears. The cancellation of utility debt was another part of the attorney general’s settlement with PPL, and the company plans to credit customers whose accounts were 90 days or more past due in October.

Activists are not discouraged. “When the [legislative] session starts in January, we need to increase the pressure to pass the payment plan as a percentage of income,” said David Veliz, director of the RI Interfaith Coalition for Poverty Reduction.

The new electricity rates come into effect on October 1. Proposed natural gas rates for the winter have not yet gone through a hearing, but are expected to take effect Nov. 1.


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Pound rises ahead of likely BOE rate hike, but seen as vulnerable https://stormbirds.net/pound-rises-ahead-of-likely-boe-rate-hike-but-seen-as-vulnerable/ Thu, 22 Sep 2022 09:40:00 +0000 https://stormbirds.net/pound-rises-ahead-of-likely-boe-rate-hike-but-seen-as-vulnerable/ Sterling rises ahead of likely BOE rate hike but seen as vulnerable to further falls 09:05 GMT – The pound gains ahead of the Bank of England’s policy decision at 11:00 GMT, with another sharp interest rate hike expected, most likely 50 basis points, but still likely to fall further of this decision, ING analyst […]]]>

Sterling rises ahead of likely BOE rate hike but seen as vulnerable to further falls

09:05 GMT – The pound gains ahead of the Bank of England’s policy decision at 11:00 GMT, with another sharp interest rate hike expected, most likely 50 basis points, but still likely to fall further of this decision, ING analyst said Chris Turner in a note. Tighter BOE policy has provided little support for the pound this summer and instead British fiscal concerns are growing. Friday’s government mini-budget ‘could be the trigger for another round of gilding [U.K. government bonds] and the sale of pounds sterling. The GBP/USD pair could fall towards 1.10 and the EUR/GBP pair could rise to around 0.88, according to Turner. EUR/GBP falls to a 1-week low at 0.8709. (renae.dyer@wsj.com)

 
Companies News: 

Segro COO Andy Gulliford to retire in 2023

Segro PLC said on Thursday chief operating officer Andy Gulliford would retire from the company in 2023.

GSK obtains urinary tract infection treatment license with Spero Therapeutics

GSK PLC announced Thursday that it has signed an exclusive license agreement with Spero Therapeutics Inc. to market tebipenem HBr, an antibiotic currently in late-stage studies that could treat complicated urinary tract infections.

Halma PLC sees good progress on 1H; Supports FY2023 guidance

Halma PLC said on Thursday it expected to report good progress in the first half, meeting management’s expectations, and its order intake was ahead of the same period last year.

Saint-Gobain authorized by the British regulator for the acquisition of GCP

The British competition authority said Thursday that it would not pursue its investigation into the proposed takeover of GCP Applied Technologies Inc by Compagnie de Saint-Gobain SA.

LXI REIT swaps deals with Sainsbury’s over £500m grocery portfolio

LXI REIT PLC said on Thursday it had swapped contracts with J Sainsbury PLC to acquire a portfolio of grocery stores for 500 million pounds ($563.5 million), and was in talks with investors on the funding.

JD Sports Fashion’s first-half pretax profit fell due to higher costs; Sales increased

JD Sports Fashion PLC on Thursday reported lower pre-tax profit for the first half after recording higher costs, although it said sales increased due to high levels of demand for its sports products.

Smiths News Set to Beat FY2022 Market Views on Strong Levels of Sales and Demand

Smiths News PLC said on Thursday that its performance for the second half of fiscal 2022 was strong and that it expects to end the fiscal year beating market views.

Polymetal moved to a 1H net loss on falling gold sales; back guide

Polymetal International PLC said on Thursday it posted a net loss in the first half as revenue fell on lower gold sales, and backed its production forecast for the year.

Widening of PensionBee’s pre-tax loss in the first half; Sales increase

PensionBee Group PLC on Thursday reported a widened pre-tax loss for the first half of 2022 after recording higher costs, although it said revenue and assets under administration had increased significantly.

Playtech’s first-half pretax profit fell on strong comparative period; Turnover up

Playtech PLC said on Thursday that pre-tax profit for the first half of 2022 fell significantly, despite higher revenues, as distribution costs rose and the comparative period saw a large one-time benefit, and supported its outlook for the whole year.

Aquis Exchange First-half pre-tax profit, sales fell due to market volatility

Acquis Exchange Ltd. on Thursday reported a significant drop in pretax profit and sales for the first half of 2022 due to market volatility, but said its current performance is in line with market expectations for the full year .

Safestyle went to a pre-tax loss of 1H due to a cyberattack; Fall in stocks

Shares of Safestyle UK PLC fell after it said on Thursday it posted a first-half pre-tax loss due to costs and disruption from a cyberattack, and was restoring dividend payments.

Begbies Traynor sees FY2023 earnings in line with market views

Begbies Traynor Group PLC said on Thursday it expects to deliver a pre-tax profit for the financial year 2023 in line with market expectations, driven by growing demand in insolvency and restructuring cases.

Time Finance FY 2022 Pre-tax profit fell; The new year starts well

Time Finance PLC said on Thursday that its profit before tax for the financial year 2022 fell and revenue fell slightly, although the new year started well with an increase in profits.

PZ Cussons FY2022 Pre-Tax Profit Dropped Due to Higher Costs; Increase the dividend

PZ Cussons PLC said on Thursday that pre-tax profit for the financial year 2022 fell due to higher costs, although it increased its dividend payout.

Trakm8 Holdings performs in line with market expectations

Trakm8 Holdings PLC said on Thursday it continued to operate in line with market expectations since September 14 and remained confident to meet the board’s views for this year, and an improving outlook for the next.

Learning Technologies’ first-half pretax profit increased on higher acquisition revenue

Learning Technologies Group PLC said on Thursday that first-half pretax profit rose as revenue rose due to contributions from an acquisition and currency tailwinds, and its performance continued into the second half.

GetBusy ARR has increased since June 30 and supports full year guidance

GetBusy PLC said Thursday that annual recurring revenue to August 31 increased slightly from June 30, boosted by strong new business and monetization across the group, and supported its full-year guidance.

Petro Matad shares fall on widened half-year loss and ongoing access issues

The shares of Petro Matad Ltd. fell on Thursday after the company said the first-half pretax loss had widened and a land access issue surrounding its Heron 1 field in Mongolia was still unresolved.

 

Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswire

September 22, 2022 05:40 ET (09:40 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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‘Phenomenal’ coal prices rise as New Hope profits soar https://stormbirds.net/phenomenal-coal-prices-rise-as-new-hope-profits-soar/ Tue, 20 Sep 2022 01:15:00 +0000 https://stormbirds.net/phenomenal-coal-prices-rise-as-new-hope-profits-soar/ Mr Bishop said New Hope started its new financial year with coal prices more than doubling from the same period last year. “Based on us not being too bothered by the rain and the supply chain still working, this year could be another banner year and foreign currencies don’t look set to rise anytime soon,” […]]]>

Mr Bishop said New Hope started its new financial year with coal prices more than doubling from the same period last year.

“Based on us not being too bothered by the rain and the supply chain still working, this year could be another banner year and foreign currencies don’t look set to rise anytime soon,” he said. The Australian Financial Review.

“We are also coming into winter for the Northern Hemisphere, so you can safely say that prices will likely rise before falling as we come to the end of the calendar year.

“When you combine that with the exchange rate which is currently around 66¢, it’s phenomenal.

“I think that will continue when you look at the supply and demand outlook, the supply response is not going to happen like in previous booms and demand seems to be constant and probably even more so now when people look at the current energy crisis.

The windfall dividend is worth about $175.3 million to New Hope’s largest shareholder, Washington H Soul Pattinson.

The payout comes after New Hope returned $249.7 million to shareholders in its half-year results in March.

Tuesday’s huge profit and the promise of another great year to come justify New Hope’s decision to buy the majority stake in the Bengalla thermal coal mine in New South Wales.

New Hope paid $865 million to Rio Tinto for its 40% stake in 2015, then paid $860 million to Wesfarmers for an additional 40% stake in 2018.

Mr Bishop said New Hope had easily made a return on its investment in Bengalla. “We will pay very quickly [it] start again at this rate, ”said Mr. Bishop.

The comments come after Yancoal’s 2017 acquisition of Rio’s key NSW thermal coal assets paid for itself in five years.

Analysts said New Hope was paying a high price for the Bengalla stake it acquired in 2015.

But beyond its belief in the future of coal, New Hope had an additional strategic motivation in that it feared its Acland mine in Queensland would run out of resources before the Queensland government approved an extension. .

This fear turned out to be well placed; Acland has been inactive for much of the year and New Hope must obtain another water extraction license before it can expand the old pit and resume mining.

If approved, the Acland mine will produce approximately 5 million tonnes of coal each year.

Mr Bishop said some of Acland’s potential output was not under contract, meaning European nations scrambling to find fuel for the impending winter could potentially buy some.

“We certainly didn’t block all that coal,” he said.

“We have kept in touch with loyal customers from the past, but I think there are options to provide it to new customers and that can be in Europe. I think it’s fair to say that we won’t have any problem selling the coal.

“But we don’t get ahead of ourselves, we have to get the approval first, get the labor in and get the coal in and get it out.”

Mr Bishop said more than 600 employees had expressed an interest in working at Acland if the mine were to resume.

The strong interest comes at a time when many miners are struggling to find staff amid skills shortages, but Mr Bishop said Acland’s appeal was that workers could live in residence in Brisbane, Toowoomba or Dalby and didn’t need to work on the fly. in, fly-out list.

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Don’t abuse profit margins, warns RBA https://stormbirds.net/dont-abuse-profit-margins-warns-rba/ Fri, 16 Sep 2022 02:12:00 +0000 https://stormbirds.net/dont-abuse-profit-margins-warns-rba/ “Somehow it’s no surprise that demand for property has been so strong in recent years. “Companies don’t discount as much when supermarkets were supposed to close.” “So I’m not saying there’s that kind of abuse right now, but you know, we have to make sure that very high profit margins don’t become a source of […]]]>

“Somehow it’s no surprise that demand for property has been so strong in recent years.

“Companies don’t discount as much when supermarkets were supposed to close.”

“So I’m not saying there’s that kind of abuse right now, but you know, we have to make sure that very high profit margins don’t become a source of inflation.”

Dr Lowe said wage growth in the US and UK was too high and fueling inflation, forcing these central banks to react to aggressive interest rate hikes.

Australian wages were recovering but were not yet a major source of inflation, he said.

“It is also important to note that to date, stronger wage growth has not pushed up inflation.

“And at the aggregate level, labor cost growth remains consistent with inflation returning to target.

“That’s not the case in a number of other countries, but it’s the case in Australia.

“Looking forward, it’s important that we avoid a cycle where higher inflation drives up wages and inflation stays high.

“This type of cycle would lead to higher interest rates, a weaker economy and higher unemployment.”

Dr Lowe said accepting real wage cuts over the next year would limit inflation and make it easier for the RBA to engineer a soft landing for the local economy.

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Machinery orders in Japan post surprise gains in July https://stormbirds.net/machinery-orders-in-japan-post-surprise-gains-in-july/ Wed, 14 Sep 2022 01:32:00 +0000 https://stormbirds.net/machinery-orders-in-japan-post-surprise-gains-in-july/ A factory area is seen in front of Mount Fuji in Yokohama, Japan January 16, 2017. REUTERS/Kim Kyung-Hoon/File Photo Join now for FREE unlimited access to Reuters.com Register July underlying orders +5.3% m/m, above f’cast Core orders +12.8% y/y vs f’cast +6.6% TOKYO, Sept 14 (Reuters) – Japan’s core machinery orders extended gains in July, […]]]>

A factory area is seen in front of Mount Fuji in Yokohama, Japan January 16, 2017. REUTERS/Kim Kyung-Hoon/File Photo

Join now for FREE unlimited access to Reuters.com

  • July underlying orders +5.3% m/m, above f’cast
  • Core orders +12.8% y/y vs f’cast +6.6%

TOKYO, Sept 14 (Reuters) – Japan’s core machinery orders extended gains in July, raising hopes that growth spending by businesses could offset near-term headwinds from a global economic slowdown and a weaker yen, which drove up costs in the country.

The surprise rise in base orders – a barometer of capital spending – could provide temporary relief to policymakers hoping business investment will spur a national recovery in the world’s third-largest economy.

The Reuters Tankan survey, however, separately showed that Japanese manufacturers’ business confidence fell from a seven-month high in September as the business sector faced continued pressure from high commodity costs. Read more

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Core orders, a highly volatile data series seen as a guide to capital spending over the next six to nine months, rose 5.3% in July from the previous month, Cabinet Office data shows. .

The advance, which was boosted by a number of mid-size orders for railway carriages, was stronger than a 0.8% contraction predicted by economists in a Reuters poll and followed a increase of 0.9% the previous month.

The result “indicates strong growth in non-residential investment this quarter, accompanied by solid growth in capital outflows in July and record corporate profit margins in the second quarter,” said Darren Tay, Japan economist at Capital Economics.

By sector, manufacturers’ orders fell 5.4% month on month, weighed down by lower orders in the electrical machinery and automotive and parts subsectors.

Non-manufacturing orders jumped 15.1%, boosted by a 172.7% rise in orders from the transportation and postal subsector that offset a drop in the wholesale and retail trade subsector and drove up overall orders.

LOW YEN

As Japan Inc faces higher import costs due to a weaker yen, which has lost around 20% against the dollar this year, the weaker currency may also make home-based goods production more attractive to export-oriented manufacturers.

However, the fall in the yen this year is unlikely to immediately lead to increased spending on factories and other manufacturing facilities, said Takumi Tsunoda, senior economist at the Shinkin Central Bank Research Institute.

“It takes about two years for exchange rate fluctuations to start affecting companies’ capital spending plans,” Tsunoda said.

“Companies are at the stage of assessing whether the depreciation of the yen will be sustained. This will not lead to an immediate increase in domestic capital investment.”

Compared with a year earlier, base orders, which exclude volatile shipping and electric utility numbers, rose 12.8% in July, the data showed.

In the Reuters Tankan survey, the manufacturing confidence index fell to 10 in September from 13 last month as the yen’s recent fall to a 24-year low amplified the pain of rising import costs for national companies.

Japan’s economy grew more than initially expected in April-June on stronger business and consumer spending following the lifting of local COVID-19 restrictions. Read more

But it faces growing risks of economic slowdown in the United States, Europe and its main trading partner China, while sharp price increases and a weak yen hit consumer spending and weigh on business sentiment. business in the country.

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Reporting by Daniel Leussink; Editing by Sam Holmes and Richard Pullin

Our standards: The Thomson Reuters Trust Principles.

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3 under-loved stocks that could double your money by 2030 https://stormbirds.net/3-under-loved-stocks-that-could-double-your-money-by-2030/ Mon, 12 Sep 2022 09:45:00 +0000 https://stormbirds.net/3-under-loved-stocks-that-could-double-your-money-by-2030/ Looking to get rich on the stock market? One of the best ways to do this is to invest in strong companies that can thrive no matter what the market throws at them. A well-run business is one with stable revenues, including during economic downturns. It should also have an edge that helps it thrive […]]]>

Looking to get rich on the stock market? One of the best ways to do this is to invest in strong companies that can thrive no matter what the market throws at them. A well-run business is one with stable revenues, including during economic downturns. It should also have an edge that helps it thrive or at least a viable plan to achieve profitability.

Unfortunately, sometimes companies that tick all of these boxes tend to slip under the radar of the meme stock crowd. It is therefore necessary to go in search of them more often. To help you in that search, here are three under-loved, yet successful companies with stocks capable of achieving a 10% annual growth rate – the amount needed to double your investment by 2030.

Image source: Getty Images.

1. Progressive

progressive (RMP -0.42%) writes auto and home insurance policies for individuals and businesses. While insurance is admittedly not the most exciting business, the way Progressive executes it can only excite investors.

Progressive was the first insurance company to use the driving behavior of its customers to price its insurance policies. The company rolled out this technology, called telematics, in 2004 and made it widely available to customers in 2011. The technology has been hugely successful, making Progressive one of the best in the industry when it comes to pricing policies.

Insurers use a measure called the combined ratio to see how well they write policies. The combined ratio is the ratio of claims plus expenses to total premiums collected. Over 20 years, Progressive’s combined ratio has averaged 91% (lower is better), smashing the industry average of 100% over the same period.

A graph shows Progressive's combined ratio against the industry average over the past 20 years.

Data sources: Progressive and National Association of Insurance Commissioners. Table by author.

Progressive is also in a good position to increase its premiums in this inflationary environment that we are experiencing. The company quickly adapted to rising claims costs from last year and increased its net earned premiums by 12% over last year.

Shares of Progressive have returned investors about 26% annually over the past decade. With its ability to price insurance policies better than others, there’s no reason it can’t achieve a 10% annual growth rate and double your money in the years to come.

2. Chicken head insurance

Chicken head insurance (GSHD 2.85%) is a company that sells insurance under a franchise model. It was founded in 2003 and has been a listed company since 2018.

Goosehead takes a unique approach to selling insurance, leveraging technology that allows it to onboard franchisees at a blistering pace. From 2018 to 2021, Goosehead grew its franchise count from 646 locations to over 2,151, a 50% annual growth rate.

Goosehead is aggressively increasing the number of its franchises, as it sees this as the key to increasing profit margins and cash flow in the future. During its initial franchise agreement, Goosehead collects a 20% royalty from its franchisee. After this initial period, which lasts approximately 10 years, Goosehead’s royalty then increases to 50%, setting it up for a future of strong cash flow.

The insurance agency achieved solid growth, with premiums generated through its franchise channel increasing 52% annually. He incurred higher expenses to onboard and train new franchisees. However, with a strategy of consistent growth and execution, I believe Goosehead can be an excellent long-term performer over the next decade and beyond.

3. Marsh and McLennan

Marsh and McLennan (MMC 0.29%) helps companies manage risk and advises them on labor issues. Although it’s not the most exciting activity, what’s exciting is the cash flow it generates.

Over the past decade, the company has grown its net profit by 13% per year. Its free cash flow, or cash left over after paying expenses and capital expenditures, has grown 10% annually.

The firm has benefited from strong demand for its advice, especially as companies navigate the uncertainties surrounding the pandemic, global supply chain issues and the transition to cleaner energy. It also benefited from higher insurance premiums, which boosted its commission income.

Marsh & McLennan is in a great place to thrive, and CEO Dan Glaser said “when the world is unstable, demand for our services increases”. The company is expected to perform well even during an economic downturn. According to Glaser, the company has increased its earnings per share in every recession since 1962, making it another great stock that could double your money in years to come.

Courtney Carlsen holds positions in Progressive. The Motley Fool holds positions and recommends Goosehead Insurance, Inc. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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Nasdaq bear market: 5 unparalleled growth stocks you’ll regret not buying on the downside https://stormbirds.net/nasdaq-bear-market-5-unparalleled-growth-stocks-youll-regret-not-buying-on-the-downside/ Sat, 10 Sep 2022 09:06:00 +0000 https://stormbirds.net/nasdaq-bear-market-5-unparalleled-growth-stocks-youll-regret-not-buying-on-the-downside/ It’s a tough time to be an investor. Whether you’ve put your money to work on Wall Street for decades or are relatively new to investing, you’ve witnessed the worst first-half performance for the broad spectrum. S&P500 in 52 years! Moreover, stock-dependent growth Nasdaq Compound (^IXIC 2.11%), which is largely responsible for driving the market […]]]>

It’s a tough time to be an investor. Whether you’ve put your money to work on Wall Street for decades or are relatively new to investing, you’ve witnessed the worst first-half performance for the broad spectrum. S&P500 in 52 years!

Moreover, stock-dependent growth Nasdaq Compound (^IXIC 2.11%), which is largely responsible for driving the market to record highs, did even worse. From peak to peak, the Nasdaq Composite lost up to 34% of its value and was firmly entrenched in a bear market.

Image source: Getty Images.

While it’s undeniable that bear markets can be scary given the speed and unpredictability of bearish moves, history also shows that they are the perfect time for long-term investors to pounce. Indeed, every major drop in US indices, including the Nasdaq Composite, is eventually erased by a bull market rally.

With growth stocks at the stake during this downturn, they are arguably the best place for patient investors to put their money to work. Below are five unprecedented growth stocks you’ll regret not buying during the Nasdaq bear market decline.

Amazon

The first incredible growth stock just begging to be bought during the Nasdaq bear market decline is none other than FAANG stock. Amazon (AMZN 2.66%). Despite near-term concerns about weak retail sales and historically high inflation, Amazon’s highest-margin operating segments are firing on all cylinders.

Although most people think of Amazon’s main online marketplace when they hear the company’s name, online retail sales generate extremely thin margins. What has been far more important to the company is how its market leader has helped generate higher margin revenue. For example, the company’s marketplace has helped it enroll more than 200 million Prime members globally, as of April 2021. Amazon makes nearly $35 billion in annual sales from subscription services.

To add, with the company expected to bring in nearly $0.40 of every dollar in U.S. online retail sales in 2022, Amazon’s ad revenue has skyrocketed. Amazon generates $35 billion in annual sales at the rate of sales from advertising services alone.

But the company’s golden ticket is undoubtedly its cloud infrastructure segment, Amazon Web Services (AWS). Cloud spending is still in the early stages of growth, and AWS reported about 31% of global cloud services revenue in the second quarter, according to a Canalys report. Since cloud services operating margins revolve around online retail margins, AWS has the potential to more than triple Amazon’s operating cash flow by mid-decade.

Fiver International

The online services market is a second unmatched growth stock investor that will flip if it doesn’t buy during the Nasdaq bear market decline. Fiver International (FVRR 6.66%). Even though the weakening US economy has cast doubt on business spending in the near term, Fiverr is uniquely positioned to benefit from it over several years.

Key to Fiverr’s success is going to be its ability to stand out in an increasingly crowded space. The good news is that the company does this in two ways. First, Fiverr freelancers present their scope of work as a package, rather than on an hourly basis. Providing an all-inclusive (i.e., transparent) price is something Fiverr customers seem to appreciate, as evidenced by the continued growth in spend per buyer, even in the face of a weaker US economy.

As I recently pointed out, the other difference with Fiverr’s operating model can be seen in its participation rate. The “take-rate” describes the amount of money Fiverr keeps for transactions traded on its platform. While most of the company’s peers have a teenage turnout, Fiverr’s turnout has steadily increased and currently sits at just under 30%. The simple fact that Fiverr’s engagement rate continues to climb as it adds new active buyers demonstrates the pricing power of this already profitable platform.

An engineer placing wires in the back of a data center server tower.

Image source: Getty Images.

Rapidly

The third record-breaking growth stock you’ll regret not recouping during the Nasdaq bear market decline is an edge computing company Rapidly (FSLY 7.58%). Although Fastly’s larger-than-expected losses over the past two quarters have been an eyesore, the company is well positioned to thrive over the long term as data moves online and into the cloud.

Simply put, Fastly is responsible for delivering data from the edge of the cloud to end users as quickly and securely as possible. Since the COVID-19 pandemic took shape, we’ve seen quite a drastic shift in traditional workplace and content consumption habits. With more and more people working remotely and businesses moving their data to the cloud at an accelerated rate, companies like Fastly are more reliable than ever. That’s great news for a usage-driven operating model like Fastly’s.

Without overlooking the disappointment of Fastly’s larger quarterly losses, investors should also note that the company’s total number of customers continues to grow and its dollar net expansion rate (DBNER) has stabilized around 120. %. DBNER is a measure of how much more (or less) existing customers are spending in the current year compared to the previous year. A figure of around 120% suggests that existing customers are spending around 20% more year over year.

Cresco Laboratories

A fourth noteworthy growth stock you’ll regret not buying as the Nasdaq plunges is US Multistate Cannabis Operator (MSO) Cresco Laboratories (CRLBF 2.40%). Although Wall Street remains disappointed that the US federal government has not legalized marijuana, there are more than enough opportunities at the state level for a company like Cresco to profit enormously.

The Cresco Labs marijuana stock looks like an intriguing investment for two reasons. For starters, it’s heavily focused on expanding into limited license markets. These are markets where regulators deliberately limit both the total number of dispensary licenses issued, as well as the total number of retail licenses a single company can hold. Targeting limited license states will give Cresco Labs a fair chance to grow its brands without being overtaken by a deeper-pocketed MSO.

Additionally, Cresco is in the midst of a transformative acquisition. Before the end of the year, the full takeover by Cresco of MSO Care British Columbia should close. When complete, the combined company will have more than 130 operating dispensaries in 18 states.

The second factor that makes Cresco such a smart buy is its industry-leading wholesale operations. Although wholesale cannabis generates lower margins than retail operations, Cresco holds a coveted cannabis distribution license in California that allows it to place its proprietary pot products in more than 575 dispensaries. In other words, it’s gaining volume, even with lower margins.

MasterCard

The fifth and final unparalleled growth stock you’ll regret not buying during the Nasdaq bear market decline is the payment processor MasterCard (MY 1.75%). Although the growing likelihood of a US and/or global recession worries Wall Street, Mastercard brings clearly identifiable competitive advantages to its shareholders’ table.

One of the coolest things about Mastercard is its cyclical links. While this exposes the business to lower revenue generation during recessions, it is important to note that recessions do not last very long. In comparison, periods of economic expansion are almost always measured in years. Just sitting back and allowing time to run its course should allow Mastercard investors to benefit from a steady increase in consumer and business spending.

Another thing to consider is that Mastercard deliberately avoids lending. Even though it is a well-known brand that would probably have no problem generating interest income and fees as a lender, it would also expose the company to defaults and debts. potential write-offs during recessions. Not having to set aside capital to cover loan losses is one of the main reasons Mastercard’s profit margin remains firmly above 40%.

Mastercard’s growth streak is also huge. Since most global transactions are still conducted in cash, Mastercard has plenty of opportunities to expand its infrastructure in underbanked markets or make acquisitions to expand its reach.

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Benefits Recap: Still Hooked https://stormbirds.net/benefits-recap-still-hooked/ Tue, 06 Sep 2022 08:49:13 +0000 https://stormbirds.net/benefits-recap-still-hooked/ Jeffrey BuchbinderCFA, Chief Equity Strategist, LPL Financial ________________________________________________________________________________________________ IMPORTANT DISCLOSURES This material is provided for general information only and is not intended to provide specific advice or recommendations to any individual. There can be no assurance that the views or strategies discussed are suitable for all investors or will produce positive results. Investing involves risk, […]]]>

Jeffrey BuchbinderCFA, Chief Equity Strategist, LPL Financial

________________________________________________________________________________________________

IMPORTANT DISCLOSURES

This material is provided for general information only and is not intended to provide specific advice or recommendations to any individual. There can be no assurance that the views or strategies discussed are suitable for all investors or will produce positive results. Investing involves risk, including possible loss of capital. All economic forecasts presented may not develop as expected and are subject to change.

References to markets, asset classes and sectors are generally to the relevant market index. Indices are unmanaged statistical composites and cannot be invested directly. Index performance is not indicative of investment performance and does not reflect fees, expenses or sales charges. All performance referenced is historical and does not guarantee future results.

Any company names listed here are for educational purposes only and not an indication of commercial intent or a solicitation of their products or services. LPL Financial does not provide research on individual stocks.

All information is believed to come from reliable sources; however, LPL Financial makes no representations as to its completeness or accuracy.

The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure the performance of the entire national economy through changes in the aggregate market value of 500 stocks representing all major industries.

The PE ratio (price to earnings ratio) is a measure of the price paid for a stock relative to the annual net income or profit earned by the company per share. This is a financial ratio used for valuation: a higher PE ratio means that investors pay more for each unit of net income, so the stock is more expensive compared to one with a PE ratio inferior.

Earnings per share (EPS) is the portion of a company’s earnings allocated to each share of common stock outstanding. EPS serves as an indicator of a company’s profitability. Earnings per share is generally considered the most important variable in determining the price of a stock. It is also a major element used to calculate the price/earnings valuation ratio.

All index data from FactSet.

This research material was prepared by LPL Financial LLC.

Securities and advisory services offered by LPL Financial (LPL), an investment adviser and a registered broker (member FINRA/SIPC). Insurance products are offered by LPL or its affiliates under license. To the extent you receive investment advice from a separately registered independent investment adviser who is not affiliated with LPL, please note that LPL makes no representations with respect to such entity.

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It is a world-class, for-profit Ontario hospital. Could Shouldice be a model for private health care? https://stormbirds.net/it-is-a-world-class-for-profit-ontario-hospital-could-shouldice-be-a-model-for-private-health-care/ Sat, 03 Sep 2022 18:29:33 +0000 https://stormbirds.net/it-is-a-world-class-for-profit-ontario-hospital-could-shouldice-be-a-model-for-private-health-care/ When Ontario Premier Doug Ford recently pondered potential reforms to the provincial health care system, he cited the Shouldice Hospital as an example of the positive role privatization could play. His praise for the world-renowned private hernia clinic, one of the few hospitals in Ontario allowed to operate for profit, also raised questions as to […]]]>

When Ontario Premier Doug Ford recently pondered potential reforms to the provincial health care system, he cited the Shouldice Hospital as an example of the positive role privatization could play.

His praise for the world-renowned private hernia clinic, one of the few hospitals in Ontario allowed to operate for profit, also raised questions as to whether it is a model that could be replicated or lead to the erosion of Medicare and the creation of a two-tier system.

The hospital, in Thornhill, just north of Toronto, sits on 20 acres of country estate, with gardens and walking paths – making it more like a spa – 89 licensed beds and five operating theatres. The menu includes starters such as Rainbow Trout with Hollandaise Sauce, Roasted Potatoes and Green Beans or Coconut Chicken Curry with Singapore Noodles.

A former patient recently joked on Facebook that he was still checking for “another hernia so I can have another mini vacation.”

However, the hospital’s main claim to fame is the number of hernia surgeries it performs, around 7,000 a year.

This means, according to the hospital, that its surgeons repair more hernias in a year than most in their lifetime.

The hospital’s main claim to fame is the number of hernia surgeries it performs – around 7,000 a year. (Shouldice/Facebook)

“Our surgeons and surgical team are second to none,” John Hughes, CEO of Shouldice Hospital, said in an email to CBC News. “Since our surgeons only do hernia repairs…they are just excellent at what they do – the more you do, the better you get.”

Shouldice also says its model allows it to operate at a lower cost per case than public hospitals and wait times are a fraction of those in the public system.

The hospital also claims that its infection, complication and recurrence rate is less than 0.5% for primary inguinal hernia repairs, the lowest recorded in the world.

The surgeries themselves are covered by OHIP.

Apart from that “we charge a semi-private room at a rate in line with the rest of [Toronto-area] hospitals,” Hughes said. “There is no additional billing for other services, for example medical, food, medication.

But due to the hospital’s policy that most patients must stay at least three days or more after surgery, these room charges generate significant revenue, critics say.

“A lot of people who go there, go there because they have very good private insurance,” Ontario MP France Gélinas, NDP health critic, said in a statement.

Founded in 1945

The hospital was founded in 1945 by Dr. Edward Earle Shouldice, who performed hernia surgeries for servicemen during World War II, according to his grandson Daryl Urquhart.

To When the war ended, there was this line of people eager and eager to have their hernia repaired. And there was a shortage of beds in hospitals. And so my grandfather decided the best way to handle this was to open a hospital,” said Urquhart, who is also a former co-owner and former director of business development for Shouldice.

Its first location was in downtown Toronto, but as it became more popular it moved to Thornhill, in the estate of George McCullagh, a millionaire miner and newspaper publisher, who bought the Globe newspaper and the Mail and Empire, merging them to create the Globe and Mail.

The main residence of the estate has been transformed into a hospital. In 1971, the province’s Private Hospitals Act was amended to prohibit any new private hospitals, but those already in operation were grandfathered. There are only three private, for-profit hospitals left in Ontario, and one is Shouldice.

His patients include high-profile politicians and personalities, including former Prime Minister Joe Clark, US consumer advocate Ralph Nader and US Senator Rand Paul.

NDP Leader Jack Layton, a critic of private health care, has been accused of hypocrisy after admitting to being a Shouldice patient in the mid-1990s. (Tom Hanson/The Canadian Press)

In 2006, it sparked controversy for NDP Leader Jack Layton, a critic of private health care, who was accused of hypocrisy after admitting he had been a patient there in the mid-1990s. (Layton said he didn’t know it was a private hospital.)

Urquhart says Shouldice’s specialization model has produced an efficiency and skill set not available anywhere else.

“You just can’t achieve higher levels of efficiency in a general plant than you can achieve in a targeted plant,” he said.

The model can be reproduced

He says the model could be replicated, but would require a focused initiative from specialist healthcare professionals.

“It has to be a concerted effort between professionals, administrators and bureaucrats. And this kind of action usually happens in the private sector, not in the public sector,” he said.

But Dr Hasan Sheikh, vice president of Canadian Doctors For Medicare, said there are “wonderful examples” of not-for-profit surgical centers performing high-volume surgeries for specific conditions.

NDP health critic France Gélinas says public hospitals can just as easily operate on hernias at no cost to patients. (Mathieu Gregoire/CBC)

“And without that profit motive, they’re able to provide extremely efficient, high-quality care,” he said, citing Toronto’s Kensington Institute, which specializes in eye surgery, as a “great example.” .

“It’s comforting to send people to a place that does one and only one thing. And I think, you know, there’s no reason for that to happen in a delivery model at profit.”

The stay of patients questioned

Sheikh also wonders if hernia patients really need to stay in Shouldice for a few days after surgery.

“One of my big concerns is the fact that for a hernia repair – which is a fairly simple operation and in most public hospitals it is a day procedure – in Shouldice these patients stay for three nights.

“Keeping people around longer to do the same procedure doesn’t strike me as particularly innovative,” he said. “And I think when you have that profit motive…it begs the question of whether those decisions are made based on what’s best for patients.”

NDP health critic Gélinas says thousands of hernia surgeries are performed in hospitals across the province by hundreds of general surgeons.

“And everyone is recovering and everyone is satisfied.”

Gélinas also says that with only a limited number of general surgeons in the system, the more doctors who go to private clinics, the fewer there are “available for the rest of us.”

“Private for-profit clinics will cost us all,” she said. “It is deeply disturbing that Mr. Ford mentioned Shouldice as a role model to look up to.”

However, Urquhart defends the hospital’s three-day policy, saying it reduces patient anxiety and leads to fewer potential complications.

“You’ll have people saying, ‘They don’t need to stay. Shouldice just needs to make money and so on.’ And that’s not true. If Shouldice sent patients home the same day or the next day, they would just be putting more patients through the system.

“It makes no difference. The most important thing about the model has always been what’s best for the patient.”

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