Investing Port RSS Feed All the latest news from Investing Port https://www.investingport.com Jeremy Siegel says Wall Street will boom in the coming year ‘no matter who is president’ The stock market saw volatility at different levels since March this year. Analysts are optimistic that the stock market will most likely stabilize in the week ahead of the presidential elections and September’s job report. The presidential election will be the market focus in the coming week as the first debate is between President Donald Trump and former vice president Joe Biden on Tuesday night. While there are mixed reactions on Wall Street over the coming elections, Wharton School professor Jeremy Siegel believes the stock market will still thrive next year, regardless of who becomes president. He told CNBC that there were many reasons that indicate the markets will not suffer in the coming year, including the increased supply of money due to the COVID-19 stimulus efforts to keep the economy standing. “I think the chances are this bull market can continue in the next year, just on those factors,” Siegel said. “I think the market… is looking forward to a really good 2021 no matter who is president.” Siegel said Monday that he is positive in the stock market’s ability to sharply recover from its coronavirus lows, as there are more fundamental factors at play. He cited the Federal Reserve and Congress’ move of pumping trillions of dollars into the economy through coronavirus relief and stimulus packages. “I’m a monetary theorist. This is what I teach and study. This is unprecedented in 75 years, since World War II,” Siegel said. “I think there’s a lot of repressed liquidity in the market that once the vaccine and the pandemic fears fade in 2021, we’re going to see a big boost in activity.” As the whole of the United States anticipates the forthcoming Presidential debate, Wall Street increasingly continues to watch and observe changes that are likely to occur, especially to businesses and investments. Former vice president to Barrack Obama, Joe Biden has proposed to raise the corporate tax rate to 28% from 21%. The tax rate had previously been 35% until the Trump-backed GOP tax law of 2017 made it 21%. Also, Biden wants to increase the tax rate on long-term capital gains. President Trump reportedly suggested that the proposed tax increase by Biden could be detrimental to the stock market, saying that it would “drop down to nothing” if the new tax law was implemented. Some of Biden’s supporters on Wall Street have also confirmed that the new tax laws may not be favorable as the market could see initial declines. However, Michael Novogratz, former hedge fund manager, and Democratic donor, alongside others have said Biden’s tax policies would benefit the market over time. “In the long run, if you get the country right and you get that balance right, markets will be stronger,” he told CNBC. ]]> Mon, 28 Sep 2020 14:07:44 EST https://www.investingport.com/jeremy-siegel-says-wall-street-will-boom-in-the-coming-year-no-matter-who-is-president/ https://www.investingport.com/jeremy-siegel-says-wall-street-will-boom-in-the-coming-year-no-matter-who-is-president/ TikTok U.S. ban: Judge blocks Trump administration order temporarily During the TikTok hearing on Sunday, September 28, a judge temporarily blocked the order from the Trump administration asking that TikTok should be banned from Google and Apple app stores in the United States. What should have been the last day of TikTok’s operations in the U.S. received a temporal extension and the Trump administration cannot yet force U.S. app stores to remove the social video app. The ban has been extended to November 12 and will come into full effect by the time. In a statement, TikTok said they were “pleased” that the court accepted their “legal arguments and issued an injunction preventing the implementation of the TikTok app ban.” “We will continue defending our rights for the benefit of our community and employees,” the statement said. “At the same time, we will also, maintain our ongoing dialogue with the government to turn our proposal, which the President gave in his preliminary approval last weekend, into an agreement.” TikTok requested for a temporary injunction as it legally challenged the ban as unconstitutional and a breach of due process. The attorney representing TikTok, John Hall said the ban goes through, it would be an “extraordinary action at the very time when the need for free open and accessible communication in America is at its Zenith” right before the U.S. elections. At the hearing, government workers argued that TikTok’s ownership by a Chinese company—ByteDance— posed a threat on national security. However, the U.S. Commerce Department said it will comply with the injunction but continue to do its job of defending the executive orders by the President which is in compliance with the law and “promotes legitimate national security interests.” “The Government will comply with the injunction and has taken immediate steps to do so, but intends to vigorously defend the E.O. and the Secretary’s implementation efforts from legal challenges,” the department said in a statement. Judge Carl Nichols’—the judge who granted the injunction—issued his opinion under the seal, therefore his exact consideration for the order is not public. But he mentioned, during the hearing, that the Trump administration’s ban could not be taken as a “fairly significant deprivation” of TikTok’s due process rights. Earlier this month, the U.S. Commerce Department announced that TikTok Downloads would be banned on September 20. Further restrictions would go into effect by November 12, making it illegal for U.S. app stores to carry TikTok’s internet traffic. The department delayed its initial hearing scheduled for September 20 after President Trump gave his approval to the deal between TikTok, ByteDance, Oracle (ORCL), and Walmart (WMT). ]]> Mon, 28 Sep 2020 14:04:36 EST https://www.investingport.com/tiktok-us-ban-judge-blocks-trump-administration-order-temporarily/ https://www.investingport.com/tiktok-us-ban-judge-blocks-trump-administration-order-temporarily/ Virgin Galactic shares surge above 20% as Wall Street continues to recommend the company Virgin Galactic shares jumped over 22% on Monday trading after Wall Street continued to recommend the space travel business to investors and customers.The space company’s stock surged after Bank of America and Susquehanna gave positive reports about the company sending the company’s shares as high as 16% Four other firms had earlier recommended Virgin Atlantic’s stock to investors which gave the space travel company eight Wall Street buy ratings.“The long-term opportunities in space tourism and hypersonic point to point travel are nearly revolutionary,” said Bank of America analyst Ron Epstein. “Purchasing shares of Virgin Galactic today offers investors the opportunity to get into a company at the very beginning of its growth story. No company in our coverage universe has anywhere near comparable growth potential.”Bank of America rated Virgin Galactic a “buy” on Monday with a $35 price target, up 113% from Friday’s close. The bank said Virgin Galactic’s growth was “unparalleled” but advised investors to watch out for risks such as possible fatal accidents that could lower consumer demand for commercial airspace travel.Despite the possible risks that could arise from Virgin Galactic’s coming space travel, its business is still unique and the company holds the market position, with less competition.“Virgin Galactic has a unique business with a leading market position. The only sub-orbital space tourism competitor in existence (Blue Origin) has not ever flown passengers,” the firm said.Since Virgin Galactic’s stock market debut last year, the company has been on track for its fourth-biggest surge in a trading day. So far this year, the company’s stock is up more than 70% even though the space tourism company is yet to begin commercial services. It also lacks adequate revenue, with losses of more than $50 million quarterly as it wraps up the final stages of developing its spacecraft. Virgin Galactic still has two key test flights before it goes full-time commercial. In August, the company told shareholders that it has a target to fly Sir Richard Branson, Virgin Galactic founder (link) to space in the first quarter of 2021 which will officially mark the start of its commercial service.Virgin Galactic is a space-exploration company that went public in 2019 via a special-purpose acquisition company. The company has received quite a number of positive reviews since its debut as many customers await its commercial services. The space company is both focused on hypersonic point-to-point travel and space tourism. ]]> Mon, 28 Sep 2020 13:59:22 EST https://www.investingport.com/virgin-galactic-shares-surge-above-20-as-wall-street-continues-to-recommend-the-company/ https://www.investingport.com/virgin-galactic-shares-surge-above-20-as-wall-street-continues-to-recommend-the-company/ India’s ShareChat in the race to succeed TikTok in India after the ban A Twitter-backed Indian startup, ShareChat is on the race to succeed TikTok after the Indian government banned the social video app in late June. Other Indian start-ups have also shown interest in filling the vacuum TikTok left in India.ShareChat is an Indian social media platform supported by Twitter. The social media platform also supports 15 regional languages in India.The Indian government banned TikTok due to arising national security concerns. The ban was announced in New Delhi in late June 2020. Days later, ShareChat launched a similar short social video platform, Moj. CEO and co-founder of ShareChat, Ankush Sachdeva told CNBC that the company had been “very, very opportunistic” as they realized that TikTok had left a very large vacuum in the short-video market. “I still believe that there is a large appetite for short-video content and if we can provide a really good experience, that essentially translates to a really good AI (artificial intelligence)- backed feed, there is a large market to be captured,” Sachdeva said. Before its ban in India, TikTok had over 200 million users. Following the ban, many of its Indian competitors saw an increase in users. Moj which launched in July, has over 80 million monthly active users who spend 34 minutes on average. Last week, the Twitter-backed short-video platform said it raised $40 million in pre-Series E funds from different investors, including Pawan Munjal, CEO, and chairman of Hero Motorcorp, a manufacturer of motorcycles and scooters. Other investors include Twitter, an investment firm India Quotient, venture capital firms SAIF Partners and Lightspeed India.The last quarter of 2020 is indeed unfavorable for the Chinese owned TikTok as the U.S. is also in talks to ban the company. ]]> Mon, 28 Sep 2020 13:55:33 EST https://www.investingport.com/indias-sharechat-in-the-race-to-succeed-tiktok-in-india-after-the-ban/ https://www.investingport.com/indias-sharechat-in-the-race-to-succeed-tiktok-in-india-after-the-ban/ Racism has cost the U.S. economy more than $16 trillion in the last 20 years, says Citigroup report As the fight against systemic racism and racial disparities continue in the United States, Citigroup carried out a report to show how much impact racism has on the U.S. economy. According to the financial firm, the United States economy has lost more than $16 trillion in the last twenty years due to systemic racism. The sum was arrived at by totaling the combined cost of racial disparities in salary, investment in Black-owned businesses, education, and the housing market.The report stated that Black workers in the United States have lost $113 billion in potential wages in the last twenty years due to their inability to get a college degree. The housing market also saw a loss of $218 billion in sales because Black applicants couldn’t secure a mortgage. Also, nearly $13 trillion in business revenue wasn’t pumped into the economy because of the difficulties Black entrepreneurs had in accessing bank loans.Citigroup Vice Chairman Raymond J. McGuire told Yahoo News that racial disparity has always had costly impact on the economy. “What this report underscores is that this tariff is levied on us all, and particularly in the U.S. that cost has a real and tangible impact on our country’s economic output.”“Now, more than ever, we have a responsibility and an opportunity to confront this longstanding societal ill that has plagued Black and brown people in this country for centuries, tally up the economic loss as a society, commit to bring greater equity and prosperity to all,” McGuire said.The financial giant is setting an exemplary step in closing up racial wealth gap in the United States. A few days after it released the report, the firm announced that it will invest more than $1 billion. In January, Citigroup reportedly launched a $150 million fund to support minority businesses, just a few months before the death of George Floyd which stirred up the Black Lives Matter movement once again.Citigroup said the U.S. economy can generate $5 trillion in GDP over the next five years if it is able to close the wealth gap today.“Closing the wage, housing, education, and business investment racial gaps can help narrow the wealth gap, which is significant for facilitating homeownership, business, and job creation, plus establishing a pipeline for intergenerational wealth accumulation,” the report stated.McKinsey & Co. conducted a similar study last year, according to a CBS News report. The study stated that the U.S. GDP could be up 6% higher by 2028 if only the racial wealth gap can be closed soon enough. “The country has over a trillion dollars to gain from the effort.”]]> Sat, 26 Sep 2020 15:47:50 EST https://www.investingport.com/racism-has-cost-the-us-economy-more-than-16-trillion-in-the-last-20-years-says-citigroup-report/ https://www.investingport.com/racism-has-cost-the-us-economy-more-than-16-trillion-in-the-last-20-years-says-citigroup-report/ Siemens spin-off, possible market value of above $20 billion Siemens expects its spin-off Siemens Energy to reach a market value of above 17 billion Euros ($19.98 billion) when it hits the Frankfurt stock exchange, a source familiar with the matter said.According to the source, the consensus forecast for the value of the business unit of gas and wind turbines is between 21 and 22 billion euros. Based on the number of shares of Siemens Energy the company would have a share price of 28.90 – 30.28 euros per share. Siemens has declined to officially comment on the matter.While there are many expectations about the spinoff, its success can only be estimated after two to three months. High price volatility is also expected after the company makes its stock market debut on September 28.Siemens is selling off its energy business due to a huge decline in demand and unfavorable new energy policies. The company will focus on its factory automation, mobility, and smart buildings business. It will give 55% of the shares in the unit to shareholders at a ratio of 1:2, that is, one share for every two Siemens shares. Also, Siemen’s AG will retain a direct stake of 35.1%, while Siemen’s pension fund will receive 9.9%. Siemens will retain a stake of roughly 25% in Siemens Energy to prevent third party interference and allow a smooth transition.Over the next 12 to 18 months after the listing, Siemens will reduce its stake before it eventually exits. Shareholders will be able to prevent key corporate decisions at general meetings through a blocking minority of 25% plus one share which can be held for a minimum of five years. Siemens Energy employs 91,000 people. It includes a range of products from generators and transformers to combines cycle turbines and compressors. The company will also include wind energy via its majority stake in Siemens Gamesa Renewable Energy.]]> Sat, 26 Sep 2020 15:43:40 EST https://www.investingport.com/siemens-spin-off-possible-market-value-of-above-20-billion/ https://www.investingport.com/siemens-spin-off-possible-market-value-of-above-20-billion/ TikTok files for injunction to lift the potential ban After weeks of going back and forth over the TikTok acquisition deal, President Donald Trump finally gave the approval early this week. However, there’s more and the social video app must act fast if it wants to continue operating in the United States.On Wednesday, TikTok filed for a preliminary injunction against the Trump administration, as a legal way of protecting its services in the United States. The request for a preliminary injunction was filed in the District Court for the District of Columbia, against the rules given by the U.S. Commerce Department instructing Apple and Google to remove the social video app from their app stores by Sunday, September 27.TikTok’s parent company ByteDance has been working tirelessly to complete a deal that would favor its American partners and keep the service operating in the United States. Last month, President Trump issued executive orders to ByteDance, asking it to sell TikTok’s U.S. operations or risk the chance of staying operational in the United States. The Trump administration classified TikTok’s presence in the U.S. as a national security threat to both the citizens and the country.Late last week, President Trump said he had “blessed” the proposed deal between TikTok, Oracle, and Walmart, in which Oracle and Walmart will get a 20 percent stake in the new entity, TikTok Global. The president later changed his mind on Monday to say that he would not approve the deal if ByteDance continues to own a stake in TikTok.TikTok said ByteDance will continue to hold an 80 percent stake in the new TikTok Global until the company went public after a year. Oracle also insisted that ByteDance will not retain any part of TikTok outright, but that its investors would be the ones to receive shares in TikTok and hold direct stakes in the app.On the other hand, there has been much anticipation from the Chinese government as to what decisions it would make regarding the deal and U.S. response. In August, Beijing announced new export restrictions which include the forbiddance of TikTok to sell its valuable algorithm without a license. This means that an outright acquisition by any American company may be quite difficult to secure if at all it happens.The Chinese government said in the China Daily that the TikTok deal was “dirty and unfair and based on bullying and extortion.”ByteDance said in a statement on its Toutiao news app, that it has applied for the Chinese license. Although the company previously said the proposed deal with Oracle and Walmart would not include the transfer of algorithms or technology.In the Wednesday filing, TikTok requested for an expedited hearing for a preliminary injunction before the September 27 deadline as it had made “extraordinary efforts to satisfy the government’s ever-shifting demands and purported national security concerns.”TikTok said in its filing that there was no justifiable reason for the government’s “precipitous actions” and there was no “plausible reason to insist the prohibitions be enforced immediately.”A ban on TikTok in the United States would do a lot of “irreparable damage” to the company as it was adding more than 400,000 new users daily before July 1, according to TikTok. It also added that its growth will be greatly affected if the ban is effected.]]> Sat, 26 Sep 2020 15:41:07 EST https://www.investingport.com/tiktok-files-for-injunction-to-lift-the-potential-ban/ https://www.investingport.com/tiktok-files-for-injunction-to-lift-the-potential-ban/ DraftKings appoints two Black women to its Board of Directors Fantasy sports company DraftKings earlier this week announced its new appointment of Valerie Mosley and Jocelyn Moore to its Board of Directors. The company also, recently, made NBA legend Michael Jordan the Special Advisor to the board.DraftKings CEO and co-founder Jason Robins expressed his excitement about the new additions to the board in a press statement. He said he looked forward to working with “Valerie and Jocelyn” as all efforts are needed to continue to grow the company.“They each bring a unique skill set that will complement those of our existing members while simultaneously bringing new perspectives and ideas to the table,” he said.Valerie Mosley is the founder of tech platform Upward Wealth, a company that helps customers grow their wealth. She also worked at Wellington Management Company L.L.P., a global management firm. She describes DraftKings as a “fast-growing, powerhouse company” with an effective management team.“I look forward to helping DraftKings continue to add value to their shareholders and stakeholders,” Mosley said in a press statement. “I have invested in and advised small private companies and large public ones, and I’m excited to help DraftKings continue its already impressive transition into a smart, strategic, and well-managed public company.”Jocelyn Moore served as the executive vice president of Communications and Public Affair for the National Football Leagues. She currently is the Executive-in-Residence at The Gathering Spot, Atlanta, in addition to her new appointment at DraftKings. About her new appointment at DraftKings, she describes the fantasy sports company and “innovative” and “engaging”. “Draft Kings has revolutionized the way sports fans consume content,” Moore said in a press statement. “As a responsible citizen, DraftKings is also doing authentic intentional work to support racial equality and social justice—as demonstrated by today’s Board announcement as well as the company’s $1 million annual commitment to its Inclusion, Equity, and Belonging initiative. I look forward to helping DraftKings continue to innovate for consumers and deliver value for shareholders.” ]]> Sat, 26 Sep 2020 15:37:07 EST https://www.investingport.com/draftkings-appoints-two-black-women-to-its-board-of-directors/ https://www.investingport.com/draftkings-appoints-two-black-women-to-its-board-of-directors/ HO3 vs. HO5: What’s the difference? Often times, homeowners assume that all insurance policies are the same, with little understanding that they actually differ and specify different things. Although home policies may appear to be identical, they differ substantially. One major difference between home insurance policies is the coverage as in the case of HO5 and HO3.HO3 and HO5 are home insurance policies that both cover an owner’s house on an open peril basis. The HO3 is the most common and widely available home insurance policy form. It includes the minimum coverage requirement when getting a mortgage. It also covers a broad range of property types but offers limited coverage for your personal belongings.HO3:Your House: Open PerilYour Personal Property: Named PerilPersonal Property: Actual Cash ValueList of named perils that limit personal property coverage on an HO3 form:Fire or lightningSmokeExplosionVolcanic EruptionWindstorm or HailFreezingDamage due to weight of Ice, Snow, or SleetTheftVandalism or Malicious MischiefRiot or Civil CommotionFalling ObjectsAccidental Discharge or Overflow of Water from Plumbing, Air Conditioning, etc.Damage caused by AircraftSudden & Accidental Tearing Apart, Cracking, Burning, or Bulging.On the other hand, HO5 takes out many of the limitations listed on the HO3. It also adds a new coverage limit for personal belongings like jewelry and business property. Some coverages that are available by endorsement on the HO3 are by default included in the HO5. For example, replacement costs on coverage contents.It is important to note that the HO5 may provide broader coverage, but its underwriting guidelines is more restrictive. Mostly, insurance providers allow HO5 insurance coverage to new(er) or well-cared-for homes located in areas with a fire department.HO5:Your House: Open PerilYour Personal Property: Open PerilPersonal Property: Replacement CostThe major difference between the two policies can be found in the manner they protect personal property. An HO3 policy covers your personal property on a Named Peril basis, whereas an HO5 policy covers your personal property on an Open Peril basis. Also, the HO3 plan excludes Replacement Cost Coverage on your personal property.Difference between Open Peril and Named PerilAn Open Peril insures your home against all causes of loss that are not specifically excluded. It means you have coverage for all perils with the exclusion of those that are specifically stated ‘excluded’ on your home insurance policy documents. This type of peril provides coverage to your personal property if any damage was caused relating to perils that were not excluded from your insurance policy.Named Peril insures against a specified list of perils. It only provides coverage for perils listed in your insurance policy. For example, if your policy document lists fire as a covered peril but do not outrightly list smoke, then no coverage will be provided for smoke in your Named Peril policy. However, if a peril was caused by smoke which led to a fire, it can be considered as a Named Peril. Most times, a fire always comes after smoke, but there are a few cases where this is not always the case.]]> Fri, 25 Sep 2020 02:45:57 EST https://www.investingport.com/ho3-vs-ho5-whats-the-difference/ https://www.investingport.com/ho3-vs-ho5-whats-the-difference/ Worse health outcomes among black residents, say physicians In a Wednesday presentation by a panel of Physicians to state lawmakers, it was revealed that residents of Black communities faced worse health conditions due to policies that make it more difficult to receive health care and other government incentives to make living more conducive for all citizens.The presentation was focused on the causes of health disparities among minority communities, especially Black communities. Physicians from the University of Louisville and from the Center of Health Equity with the Louisville Health Department were part of the presentation.The presentation was put together so lawmakers could properly understand the impact of racial disparities in health and how it affects the minority communities, according to Sen. Ralph Alvarado (R-Winchester). He says “this is the real issue” and “the data doesn’t lie.”Dr. Anita Fernander, an associate professor of behavioral science, University of Kentucky, said that compared to whites black residents have worse health outcomes. As a whole, Kentucky ranks 43rd in life expectancy, with Blacks having more death rates due to poor access to health infrastructure. Hence, Blacks are more prone to die from cancer, cerebrovascular disease, diabetes, asthma, etc.According to Fernander, the origins of racial disparities dates back to hundreds of years. The early US economy was “founded on the color-coded, race-based system of slavery.” Adding that, there was no scientific research to prove that Blacks are in any way different or inferior to whites.“Race is politically and socially constructed,” she said. For a very long time, “race” has been wrongly used to propagate social and political inequality which resulted in a disproportionate wealth opportunity channeled towards whites, Fernander added. The former director for the Center for Health Equity, Dr. Brandy Kelly Pryor said a 2017 report of the Louisville Health Equity found the average life expectancy in the poorest part of Louisville to be 69.9 to 71.7 years. This is in comparison to wealthy white areas where the life expectancy was 78.6 to 82.2.In Louisville, we are looking at a history of racism,” said Pryor.]]> Fri, 25 Sep 2020 02:40:31 EST https://www.investingport.com/worse-health-outcomes-among-black-residents-say-physicians/ https://www.investingport.com/worse-health-outcomes-among-black-residents-say-physicians/