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Yahoo
16-05-2025
- Business
- Yahoo
Resurgence of ‘America First' Trade Forges New Equities Leader
(Bloomberg) -- An unlikely cohort has climbed to the top of the S&P 500 Index's leaderboard, powered by a resurgence of the America First trade this week as tariff tensions eased, at least for now. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Maryland's Credit Rating Gets Downgraded as Governor Blames Trump Power-Hungry Data Centers Are Warming Homes in the Nordics NYC Commuters Brace for Chaos as NJ Transit Strike Looms Industrials, the companies that manufacture goods and transport them, leaped ahead of the 10 other major sectors in the benchmark on a year-to-date basis following the US and China's trade truce at the start of the week. They were lingering in 3rd place as recently as a week ago. Those stocks are up 7.8% for the year, while the S&P 500 is roughly flat. It's unusual for the group, stacked with companies that have steady but slow-growing businesses, to outperform the broader market — they haven't done so on an annual basis in the past decade. The shift toward the segment — with General Electric Co. and Deere & Co. among firms leading the charge — is a bet that waning trade friction will help the US economy rebound after a feeble first quarter. 'The whole 'America First, Buy US' is a really pro-industrial narrative,' said Jeff Buchbinder, chief equity strategist at LPL Financial. 'A healthy bull market is led by the cyclical sectors that benefit most from economic growth,' referring to industrials, utilities and financials outperforming this year. In the past week, renewed optimism around the American economy has propelled US stocks ahead of benchmarks in Europe, China and Mexico. It's part of a strengthening risk-on tone that has some market-watchers and options pros positioning for the S&P 500 to eclipse its February record high in the coming months, after approaching a bear market just weeks ago. Recession Specter Whether the cohort will continue to lead gains remains to be seen, given the specter of an economic recession still looming in the horizon. The risk of a slowdown in growth also remains high given that tariffs can disrupt businesses and stoke inflation. This week, billionaire Steve Cohen said the chance of a recession in the US now stands at about 45%, noting that there is already 'significant slowing growth.' LPL's Buchbinder also warns about continuing trade risk, which is the reason he cited when he recently downgraded industrials to neutral. 'The sector is pricing in a lot of optimism now,' he said. 'Even though the trade risk is lower now, it is still there and you cannot dismiss it.' Nicholas Colas of DataTrek Research says the rally in industrials is getting stretched, noting the sector now trades for nearly 23 times forward earnings, much higher than its 10-year average of about 19. Path Ahead But for now, industrials and utilities are the only sectors that are in the green since the S&P 500 hit an all-time high in February. Industrials have been outperforming the broader benchmark over the past 100 days after generally trailing it over comparable stretches since 2015, according to analysis from DataTrek. HSBC Holdings Plc strategists said the earnings expectations for economically sensitive companies seem to have bottomed out, suggesting a recovery is on the horizon. Bank of America Corp. strategists, meanwhile, said that investors calling for 'the end of US exceptionalism,' may be forced back in and further feed the rally. As long as there's no major shock on the trade front, Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, sees industrials and other cyclical stocks continuing to outperform. Tentarelli upgraded industrials, along with semiconductors and banks to overweight earlier this week, citing the tariff pause between the US and China. 'Industrials and banks are the two sectors you want to buy if you believe the economy is either going to accelerate or not slow down as much as expected,' he said. Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Microsoft's CEO on How AI Will Remake Every Company, Including His As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Why Obesity Drugs Are Getting Cheaper — and Also More Expensive ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
02-05-2025
- Business
- Business Insider
Zambia and Zimbabwe renew push for $5 billion hydro dam project
Zambia and Zimbabwe are stepping up efforts to attract investment for the long-stalled $5 billion Batoka Gorge hydropower project by reviving a controversial proposal to source water from the Democratic Republic of Congo. Zambia and Zimbabwe are reviving efforts to attract investment for the Batoka Gorge hydropower project. They are aiming to engage investors for the proposed 2,400-megawatt plant in the next 12 to 18 months. The project originally faced delays due to the COVID-19 pandemic and challenges in securing financing. Zambia and Zimbabwe are stepping up efforts to attract investment for the long-stalled $5 billion Batoka Gorge hydropower project by reviving a controversial proposal to source water from the Democratic Republic of Congo. The Zambezi River Authority, a joint agency between the two nations responsible for managing the Kariba Dam, has assembled a dedicated team to engage investors for the proposed 2,400-megawatt plant, according to CEO Munyaradzi Munodawafa. 'The resource mobilization effort is targeting a time frame of 12 to 18 months, subject to investor confidence, market conditions, and ongoing bilateral support from the Governments of Zambia and Zimbabwe,' Munodawafa. Construction of the Batoka Gorge hydropower project was originally slated to begin in 2020 but faced delays due to the COVID-19 pandemic and challenges in securing financing, Bloomberg reported. In a major shake-up last year, Zambia cancelled a 2019 contract awarded to General Electric Co. and China's Power Construction Corp., citing procurement irregularities. Debt challenges threaten project Zambia and Zimbabwe now aim to select new bidders by September 2025. However, fundraising efforts are complicated by both countries' financial woes: Zimbabwe is grappling with $21 billion in debt, while Zambia remains in default and is still negotiating a debt restructuring deal, five years after missing its loan payments. To strengthen the Kariba Dam's capacity and address the growing threat of erratic rainfall linked to climate change, Zambia and Zimbabwe are considering a bold plan: diverting up to 16 billion cubic meters (4.3 trillion gallons) of water annually from the Congo River. The move could help stabilize inflows into Lake Kariba — the world's largest man-made reservoir — but it comes with major hurdles, such as the steep energy requirements for pumping water uphill and the difficult terrain.
Yahoo
22-04-2025
- Business
- Yahoo
GE Aerospace's CEO Met With Trump Seeking Relief on Tariffs
(Bloomberg) -- General Electric Co.'s top executive made a direct appeal to President Donald Trump as part of a broad push by the manufacturer to navigate the volatility stemming from the global trade war. DOGE Visits National Gallery of Art to Discuss Museum's Legal Status Trump Gives New York 'One Last Chance' to End Congestion Fee Trump Administration Takes Over New York Penn Station Revamp The Racial Wealth Gap Is Not Just About Money Nashville's $3 Billion Transit Plan Brings a Call for Zoning Reform Chief Executive Officer Larry Culp spoke with Trump in-person earlier this month to explain how a 'tariff-free regime' has benefited the aerospace supply chain and generated a trade surplus for the domestic industry. Culp said he's 'hopeful' the message got through. 'We are certainly supportive of the administration's priorities around American competitiveness, revitalizing American manufacturing,' he said in an interview Tuesday after the company reported quarterly results. 'We were advocating for, in effect, a reversion back to that tariff-free regime in both directions across the Atlantic.' The meeting underscores the lengths that corporate leaders are going to ease the blow from tariffs that are upending global markets and complicating financial planning. Culp's company, which operates as GE Aerospace, reaffirmed its full-year outlook on Tuesday, saying that cost controls and price increases were helping to offset a $500 million impact from Trump's tariffs. The steady guidance offers a counter to other big aviation companies rattled by weakening consumer confidence and fears that the trade war could tilt the US economy into a recession. US airlines — key customers of GE's jet engine business — have announced plans to reduce flying capacity and torn up their financial outlooks due to volatile trade policies that have made the broader economic environment nearly impossible to predict. Investors are also concerned that new duties risk heaping additional pressure on the aerospace supply chain that could slow new aircraft deliveries by Boeing Co. and Airbus SE. GE Aerospace, the world's largest maker of jet engines, still expects adjusted full-year earnings of $5.10 to $5.45 a share, along with low double-digit revenue growth. The guidance takes announced tariffs into account, but it does not assume further escalation or a global recession. The company's shares climbed 5.4% after markets opened in New York on Tuesday. The stock had gained about 6.9% this year through Monday's close, compared with a 12% decline by the S&P 500 Index. Earnings Beat Adjusted first-quarter earnings were $1.49 a share compared with the $1.27 average of analyst estimates compiled by Bloomberg. Sales were $9 billion, in line with analyst estimates. GE Aerospace became a stand-alone company last year after Culp completed the spinoff of its energy-related units, which are now called GE Vernova. The multiyear turnaround plan has helped the company slash its debt load to roughly $20 billion. The moves have recently been rewarded by ratings upgrades from Moody's Investors Service and S&P Global Ratings. There are looming risks to GE Aerospace from the trade war between the US and China. The Chinese government ordered its airlines not to take any further deliveries of Boeing aircraft, along with purchases of related parts and equipment, Bloomberg has reported. GE Aerospace supplies engines for planes including Boeing's 737 Max and 787 Dreamliner. (Updates with share trading in eighth paragraph.) Why US Men Think College Isn't Worth It Anymore The Guy Who Connected Donald Trump to the Manosphere Eight Charts Show Men Are Falling Behind, From Classrooms to Careers How Mar-a-Lago Memberships Explain Trump's Tariff Obsession Why Brunello Cucinelli Is Well Suited for a Trade War ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
21-03-2025
- Business
- Bloomberg
Korean Air Formalizes $33 Billion Jet Deal With Boeing, GE
Korean Air signed contracts with Boeing Co. and General Electric Co. to purchase aircraft and engines after its acquisition of Asiana Airlines Inc. catapulted it into the world's top 10 carriers. The company inked a $24.9 billion deal with Boeing that will see it commit to buy 50 jets by 2033, including 20 each of the planemaker's 777-9 and 787-10 aircraft, according to statement from Korea's trade ministry late Friday. A $7.8 billion transaction with GE covers eight engines, including maintenance and repair service.
