Sunday, April 18

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Cash rich and bored? Be careful what you do with your money

Cash rich and bored? Be careful what you do with your money

Economy
Back in 2016 I suggested that you consider buying a small stake in the Iranian stock market. I don’t suppose anyone did. It wasn’t exactly easy to get in at the time and my optimism about the economy was pretty misplaced. But if you found a way, you would have bought in with the index on about 50,000. You could then have sold on 8 August with it at 2,000,000. You’d have run into a little bother with the currency, of course. The rial has been in inflation-driven collapse since 2017. But perhaps you were clever enough to hedge that a little. I’m not going to worry about you. I am, however, going to worry about the many inexperienced savers who poured their money into the market a bit too late in the day. Some three million of them have put more than 40 trillion rials (£740m) into stocks this...
LNG carriers: get ready for EEXI by 2023

LNG carriers: get ready for EEXI by 2023

Business
While the Covid pandemic continues to disrupt our lives, LNG vessels continue to trade, drydock and be delivered despite these most challenging of circumstances. Some crew members have been unavailable to be relived for long periods beyond their contract date, while newly joining crews remain unaware of when they will leave. The resilience of the industry is quite remarkable; all credit to the unsung heroes – the seafarers. IMO’s Marine Environment Protection Committee met virtually for its 75th Session (MEPC 75) in November 2020. The cut-down agenda mainly focused on measures to reduce greenhouse gases (GHG). The measures concerned are those given in the Energy Efficiency Design Index (EEDI) and the newly established Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indic...
DoorDash won’t deliver for investors. Here’s how to short it

DoorDash won’t deliver for investors. Here’s how to short it

Stocks
However, as I’ve pointed out in the past, initial public offerings that soar on their first few days have a habit of doing very badly subsequently, and DoorDash is unlikely to prove an exception to the rule. Perhaps the biggest problem is that food delivery is an extremely competitive market with a huge array of firms all vying for the same customers. While DoorDash is currently the largest food-delivery company in the US, with just under 30% of the market, it faces stiff competition in the form of Uber Eats and Grubhub. One tech stock that has done very well from this boom is the food-delivery app DoorDash ( NYSE: DASH ) . It nearly doubled on its first day of trading in early December, rising to $190 from its initial price of $102. Even today it is trading at $156, a jump of 50%, giving...
Spring break could be a boost to Southwest Florida economy

Spring break could be a boost to Southwest Florida economy

Economy
Spring break could be a boost to Southwest Florida economy Spring break is in full swing across Southwest Florida. The Tourist Development Council is hoping for a big boom in revenue that will help boost the local economy. The beaches were forced to closed last year during the peak of the pandemic. In 2020, much was unknown about the virus and the goal was to keep spring breakers off of the beaches. But, now with more knowledge about the virus people know what they need to do to stay safe. In 2020, March’s bed tax numbers are down by 33% compared to March of 2019. It got worse as the pandemic halted travel and vacations. Bed tax numbers in April of 2020 dropped by 88% compared to April 2019. The bed tax is a 5% tourist tax collected from hotels and short-term rentals. The money is us...
Slower near-term growth in new LNG infrastructure

Slower near-term growth in new LNG infrastructure

Markets
“Looking ahead, as the global economy slowly opens up and continues on its road to recovery,” said Mr Bancroft, “a majority of industry forecasts estimate for the LNG marketplace to be oversupplied across most of the 2020s, requiring substantial investment in LNG infrastructure to access new markets, which we expect to be mainly based on new FSRU terminals.” One of the world’s largest owners and operators of floating storage and regasification units (FSRUs), Excelerate currently has FSRUs operating in Argentina, Bangladesh, Brazil, Israel, Pakistan, UAE, and the US. The Houston-based owner continues to target emerging LNG import opportunities, such as in the Philippines, but Covid-19 has injected an amount of uncertainty into the market. “In its current state, the LNG market has entered ...
US open: ‘Better and more is coming’, stocks slip

US open: ‘Better and more is coming’, stocks slip

Stocks
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views. (Sharecast News) - "Better, and more better is coming next month and beyond." That was the reaction from Ian Shepherdson at Pantheon Macroeconomics to the better-than-expected non-farm payrolls report for February. According to the Department of Labor, the US jobs market created 379,000 new jobs last month (consensus: 200,000) and the unemployment ticked lower by a tenth of a percentage point to 6.2% (consensus: 6.3%). Against that backdrop, as of 1624 GMT all of the main Wall Street indices had surrendered early gains, with the Dow Jones trading down by 0.19% to 30,863.95, while the S&P 500 was off by 0.67% at 3,743.12 and the Nasdaq Composite w...
Neil Woodford’s back – but has he really learned anything?

Neil Woodford’s back – but has he really learned anything?

Insurance
All political lives, unless they are cut off in midstream at a happy juncture, end in failure – so said Enoch Powell. Is it the same for fund managers? Hedge fund manager Paul Marshall of Marshall Wace thinks so – and says so in his new book, 10.5 Lessons from Experience – but I’m not sure he’s right. If it’s a failure to more or less benchmark an index for 30 years and retire to the Home Counties with a lucrative defined-benefit pension long before you are 60, then, perhaps they have all failed. But most of us would be more likely to consider the nice pension and the pre-senility retirement to be a pretty good result. I suspect Marshall means not that all ordinary fund management lives end badly, but that all brilliant fund management ones do. It makes sense. As he says, if a manager does...
F.A.Q. on Stimulus, Unemployment and Tax Rebates

F.A.Q. on Stimulus, Unemployment and Tax Rebates

Insurance
F.A.Q. on Stimulus, Unemployment and Tax Rebates Image Credit... Robert Neubecker Ron Lieber and The Senate passed its version of the $1.9 trillion American Rescue Plan on Saturday. The pandemic relief bill now goes back to the House of Representatives, which must approve the Senate’s changes before it can go to President Biden’s desk. We will continue to update this article as the bill moves forward. Stimulus Checks How big are the stimulus payments in the bill, and who is eligible? The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would nee...
Lyft and Uber lure people with low fares, but how long will this cheap ride-sharing last?

Lyft and Uber lure people with low fares, but how long will this cheap ride-sharing last?

Business
Ridesharing giant Lyft went public on March 28 and, last week, its bigger rival Uber has said it will soon follow with its own IPO. The IPO prospectus for Lyft and the initial filing to the Securities and Exchange Commission by Uber lift the veil for the first time on the sustainability of their business models and — for now, at least — their low prices. Ride-sharing services are designed to undercut traditional taxi cabs by allowing passengers to share a ride for a cheaper price. Ideally, this results in higher revenue for the driver, but only if they manage to pick up other customers on the route. Both companies will be under pressure from investors to turn a profit. The IPO prospectus for Lyft and the initial SEC filing by Uber lift the veil for the first time on the sustainability ...
UK Budget 2021 – what investors need to know

UK Budget 2021 – what investors need to know

Finance
Yesterday the Chancellor, Rishi Sunak, delivered the UK’s 2021 Budget detailing the government’s tax, spending and coronavirus recovery plans. Here are the main takeaways and what the Budget could mean for you and your money. This article isn’t personal advice. Unlike cash, the value of investments can go down as well as up so you could get back less than you invest. What the Budget could mean for the UK economy George Trefgarne After weeks of media speculation, the Budget turned out to be both worse and better than expected. The good news is that the colossal borrowing required to support the economy during the pandemic is coming in £39bn lower than expected at £355bn, or 17% of GDP. That is still a peacetime record and the chancellor remains worried about the long term vulnerabilit...