Latest news with #Jefferies'
Epoch Times
4 days ago
- Business
- Epoch Times
US Charges Two in $275 Million Water Vending Machine Ponzi Case
NEW YORK--A Washington state entrepreneur and a former Jefferies portfolio manager were criminally charged on Thursday over a Ponzi scheme and related fraud involving water vending machines that totaled as much as $275 million, with military veterans among the victims, U.S. authorities said. Ryan Wear, the former owner of Water Station Management, was charged in Manhattan with securities and wire fraud. Jordan Chirico, who worked at Jefferies' Leucadia Asset Management unit, was charged with securities and investment adviser fraud.
Time of India
4 days ago
- Business
- Time of India
It's only a matter of time before Trump blinks on tariff: Chris Wood
Christopher Wood suggests buying Indian equities despite US tariffs. He believes Trump will eventually reverse the tariffs. Wood highlights India's geopolitical importance and notes the unusual nature of the tariffs. He mentions India's underperformance in equities and links the second tariff tranche to India's Russian oil purchases. Wood also observes the US Federal Reserve's potential rate cut in September. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Jefferies' global head of equity strategy, Christopher Wood, said the Trump administration's imposing a 50% tariff on Indian imports is not a reason to sell Indian equities. Instead, it's a reason to buy them since "it is only a matter of time before Trump backs off the stance, which is not in America's interest.""It is worth noting that the track record makes it clear that it pays to stand up to the Donald," said Wood in his latest 'Greed & Fear' said the Trump administration's decision to impose an additional 25% tariff, taking the total levy to 50%, on Indian goods is "somewhat unusual" given India's relatively small trade surplus with the US and its "very important geopolitical relationship" with second tranche of 25% tariffs appeared linked to New Delhi's purchase of Russian oil."China has been buying much more oil from Russia but has not been sanctioned in the same way," he said. "The singling out of India in this fashion is not what most people would have predicted."According to Wood, Donald Trump has succeeded in bringing China, Russia, India, and Brazil together like never before."Indeed, BRICS as a grouping has been regalvanised."Wood said India's equities had recorded the biggest underperformance relative to other markets in 15 years in the 12 months to July. He attributed the weakness to "very high valuations" and "a heavy schedule of equity issuance."According to him, it is too late to cut India with valuations now back near the 10-year average 63% Price to Earnings (PE) ratio premium over emerging market said the slightly better-than-anticipated July inflation data has marginally lifted expectations of the US Federal Reserve easing. The base case remains for a rate cut by the American central bank in September and for the US dollar to remain in a downtrend."Still, for a data-dependent Fed not willing to project forward, which is more or less where the Powell-led Fed has been of late, there is still an argument to stay on hold since the reality is that reported inflation is still well above the 2% YoY target," he said the prime driver of the Trump administration's criticism of Jerome Powell is not concerns about the state of the economy, but rather to get the cost of debt servicing down.
Economic Times
23-06-2025
- Business
- Economic Times
Rs 1 lakh crore FII selloff in 6 sectors! Are you still holding the wrong stocks?
Foreign institutional investors have aggressively sold off nearly ₹1 lakh crore in Indian equities across six key sectors, including IT and FMCG, over the past six months. Foreign institutional investors have aggressively sold off nearly ₹1 lakh crore in Indian equities across six key sectors, including IT and FMCG, over the past six months. This pullback reflects concerns about high valuations, global macro uncertainties, and potential earnings downgrades. Telecom and financials are notable exceptions, attracting FII inflows amidst this broad de-risking trend. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Valuations at Tipping Point Earnings Under Pressure Tired of too many ads? Remove Ads Where the Smart Money Is Moving Bottom Line: What Should Investors Do? Foreign institutional investors (FIIs) have gone on a selling spree, offloading nearly Rs 1 lakh crore worth of Indian equities in just six months across six key sectors of consumer durables FMCG , and IT . The sharp pullback, concentrated in segments once considered defensives or structural bets, underscores rising concerns around valuations, global macro uncertainty, and a shifting earnings biggest casualty is the IT sector, which alone has seen Rs 33,479 crore in net FII outflows, or a third of total selling. This is followed by FMCG (Rs 17,819 crore), auto (Rs 16,058 crore), consumer services (Rs 14,417 crore), power (Rs 12,231 crore), and consumer durables (Rs 11,296 crore).'We continue to maintain our underweight stance in the IT sector, as we foresee a slowdown in overall IT spending in the US market and a probable delay in discretionary spending,' said Neeraj Chadawar, Head of Fundamental and Quantitative Research at Axis Securities. 'Guidance and commentary remain critical for the sector going forward.'The broad-based nature of the selling suggests a structural de-risking rather than just profit-taking. Even construction (-Rs 9,322 crore) and healthcare (-Rs 9,048 crore) have witnessed sharp outflows. In contrast, only a handful of sectors have seen net FII inflows, including telecom (Rs 23,065 crore) and financials (Rs 9,456 crore).Despite the bounce-back in domestic equities since April, foreign investors remain wary. FIIs were net sellers in four of the six months this year, including massive outflows of Rs 78,027 crore in January and Rs 34,574 crore in February. Even June, so far, has seen a net selloff of Rs 5,404 crore (till June 15).'Export-facing sectors will be in a wait-and-watch mode… domestic-facing sectors will likely lead from here,' Chadawar added, highlighting the impact of reciprocal tax measures and global macro retreat comes amid a strong equity rally that has made valuations appear frothy, particularly in mid- and small-cap segments. According to Jefferies' Chris Wood, the Nifty Midcap 100 Index now trades at 27.1x forward earnings, even as the Nifty itself is at 22.2x—well above its historical median.'Valuations have become an issue again, particularly in the mid-cap space,' Wood wrote in his GREED & fear report. 'The equivalent of $7.2 billion of equity supply was raised last month and $6 billion so far in June. It is this supply which poses the main risk to the market.'Wood noted that domestic flows and sentiment remain strong, especially in consumer finance stocks. However, FII positioning indicates growing concern about over-valuation and saturation in parts of the valuation, earnings downgrades and growth moderation are another red flag. HSBC, in its Q4 review, flagged weak topline performance in consumer staples and slowing credit growth in banks.'Demand for consumer staples was subdued, while competitive intensity remains high… Growth for banks moderated to a single-digit rate amid margin pressures,' the HSBC note said, adding that 'a sustained recovery in earnings growth is still a few quarters away.'The IT sector, despite posting 6% net income growth, continues to suffer from poor visibility in US demand, weak discretionary spend, and macro uncertainty in export markets. This aligns with Chadawar's view that export-oriented sectors remain underweight, pending clarity on reciprocal trade not all foreign investors are pulling back entirely—they're simply rotating. FIIs have made significant investments in telecom (Rs 23,065 crore) and to a lesser extent in financials (Rs 9,456 crore), services (Rs 7,351 crore), and chemicals (Rs 4,863 crore).'From a long-term valuation and earnings visibility perspective, our portfolio is currently tilted towards cyclicals,' said Chirag Mehta, CIO, Quantum AMC. 'We believe the global macro challenges do not derail India's domestic cyclical recovery. Sectors like banking, consumer discretionary, materials, and utilities appear attractive.'While Mehta remains cautious on IT, he believes continued correction could create long-term entry opportunities, especially in high-quality names with consistent earnings Jefferies' GREED & fear India portfolio is shifting gears. Positions in L&T, Thermax, and Godrej Properties are being exited, replaced with TVS Motor, Home First Finance, and Manappuram Finance. Additional exposure is also being added to PolicyBazaar and Bharti Airtel, signaling a shift to consumption- and credit-focused domestic flows remain robust, the intensity and concentration of FII selling, especially in IT, FMCG, and auto, should not be ignored. With nearly ₹1 lakh crore of outflows in six months, the foreign money is clearly betting on earnings downgrades, valuation fatigue, and a global demand slowdown.'We seek out quality, high-integrity businesses at reasonable valuations… Our value-conscious approach often leads us to sectors that may be out of favour but possess strong fundamentals,' Mehta investors navigating this turbulent landscape, the data suggests a clear bifurcation: domestic-oriented sectors like telecom and financials are attracting foreign capital, while export-dependent sectors face sustained selling pressure. The challenge lies in timing entry points as valuations remain elevated despite the sectoral rotation.(Data: Ritesh Presswala): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
23-06-2025
- Business
- Time of India
Rs 1 lakh crore FII selloff in 6 sectors! Are you still holding the wrong stocks?
Live Events Valuations at Tipping Point Earnings Under Pressure Where the Smart Money Is Moving Bottom Line: What Should Investors Do? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Foreign institutional investors (FIIs) have gone on a selling spree, offloading nearly Rs 1 lakh crore worth of Indian equities in just six months across six key sectors of consumer durables FMCG , and IT . The sharp pullback, concentrated in segments once considered defensives or structural bets, underscores rising concerns around valuations, global macro uncertainty, and a shifting earnings biggest casualty is the IT sector, which alone has seen Rs 33,479 crore in net FII outflows, or a third of total selling. This is followed by FMCG (Rs 17,819 crore), auto (Rs 16,058 crore), consumer services (Rs 14,417 crore), power (Rs 12,231 crore), and consumer durables (Rs 11,296 crore).'We continue to maintain our underweight stance in the IT sector, as we foresee a slowdown in overall IT spending in the US market and a probable delay in discretionary spending,' said Neeraj Chadawar, Head of Fundamental and Quantitative Research at Axis Securities. 'Guidance and commentary remain critical for the sector going forward.'The broad-based nature of the selling suggests a structural de-risking rather than just profit-taking. Even construction (-Rs 9,322 crore) and healthcare (-Rs 9,048 crore) have witnessed sharp outflows. In contrast, only a handful of sectors have seen net FII inflows, including telecom (Rs 23,065 crore) and financials (Rs 9,456 crore).Despite the bounce-back in domestic equities since April, foreign investors remain wary. FIIs were net sellers in four of the six months this year, including massive outflows of Rs 78,027 crore in January and Rs 34,574 crore in February. Even June, so far, has seen a net selloff of Rs 5,404 crore (till June 15).'Export-facing sectors will be in a wait-and-watch mode… domestic-facing sectors will likely lead from here,' Chadawar added, highlighting the impact of reciprocal tax measures and global macro retreat comes amid a strong equity rally that has made valuations appear frothy, particularly in mid- and small-cap segments. According to Jefferies' Chris Wood, the Nifty Midcap 100 Index now trades at 27.1x forward earnings, even as the Nifty itself is at 22.2x—well above its historical median.'Valuations have become an issue again, particularly in the mid-cap space,' Wood wrote in his GREED & fear report. 'The equivalent of $7.2 billion of equity supply was raised last month and $6 billion so far in June. It is this supply which poses the main risk to the market.'Wood noted that domestic flows and sentiment remain strong, especially in consumer finance stocks. However, FII positioning indicates growing concern about over-valuation and saturation in parts of the valuation, earnings downgrades and growth moderation are another red flag. HSBC, in its Q4 review, flagged weak topline performance in consumer staples and slowing credit growth in banks.'Demand for consumer staples was subdued, while competitive intensity remains high… Growth for banks moderated to a single-digit rate amid margin pressures,' the HSBC note said, adding that 'a sustained recovery in earnings growth is still a few quarters away.'The IT sector, despite posting 6% net income growth, continues to suffer from poor visibility in US demand, weak discretionary spend, and macro uncertainty in export markets. This aligns with Chadawar's view that export-oriented sectors remain underweight, pending clarity on reciprocal trade not all foreign investors are pulling back entirely—they're simply rotating. FIIs have made significant investments in telecom (Rs 23,065 crore) and to a lesser extent in financials (Rs 9,456 crore), services (Rs 7,351 crore), and chemicals (Rs 4,863 crore).'From a long-term valuation and earnings visibility perspective, our portfolio is currently tilted towards cyclicals,' said Chirag Mehta, CIO, Quantum AMC. 'We believe the global macro challenges do not derail India's domestic cyclical recovery. Sectors like banking, consumer discretionary, materials, and utilities appear attractive.'While Mehta remains cautious on IT, he believes continued correction could create long-term entry opportunities, especially in high-quality names with consistent earnings Jefferies' GREED & fear India portfolio is shifting gears. Positions in L&T, Thermax, and Godrej Properties are being exited, replaced with TVS Motor, Home First Finance, and Manappuram Finance. Additional exposure is also being added to PolicyBazaar and Bharti Airtel, signaling a shift to consumption- and credit-focused domestic flows remain robust, the intensity and concentration of FII selling, especially in IT, FMCG, and auto, should not be ignored. With nearly ₹1 lakh crore of outflows in six months, the foreign money is clearly betting on earnings downgrades, valuation fatigue, and a global demand slowdown.'We seek out quality, high-integrity businesses at reasonable valuations… Our value-conscious approach often leads us to sectors that may be out of favour but possess strong fundamentals,' Mehta investors navigating this turbulent landscape, the data suggests a clear bifurcation: domestic-oriented sectors like telecom and financials are attracting foreign capital, while export-dependent sectors face sustained selling pressure. The challenge lies in timing entry points as valuations remain elevated despite the sectoral rotation.(Data: Ritesh Presswala): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
14-06-2025
- Business
- Time of India
Gold in a healthy consolidation period, says Chris Wood
Gold prices have risen by 85% since the start of 2022 while the MSCI AC World Index is up only 19% over the same period, according to the note. Jefferies' Christopher Wood notes gold's consolidation above $3,000. He maintains high gold allocation in his pension fund. Western gold ETF flows are light despite gold's outperformance since 2022. Total ETF holdings are below 2020 peak. Gold prices have significantly outpaced the MSCI AC World Index since 2022. China's gold imports surged in April. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Jefferies' global equity strategist Christopher Wood said gold has entered a 'healthy consolidation' period with prices holding above US$3,000 an ounce-a level he described as ideal for gold mining companies to enjoy rising profit margins. In his newsletter, Greed & Fear, Wood said he maintains a 40% allocation to physical gold and 20% to gold mining stocks in his asset allocation for a US dollar-denominated pension fund."Normally, when a certain category of stocks outperform, there are strong flows into the related ETFs. But that has not been the case with gold in recent years," he said. "Flows into gold ETFs in the western world have remained relatively light given the dramatic outperformance of gold since the start of 2022."Total known ETF holdings of gold are up 10% from their May 2024 low but remain 20.3% below the October 2020 peak. Gold prices have risen by 85% since the start of 2022 while the MSCI AC World Index is up only 19% over the same period, according to the said China has increased its gold purchases with imports rising 73% in April from the previous month to 127.5 tonnes, the highest level in 11 months. This volume is equivalent to nearly half of the average monthly global gold production outside China, he said."Holdings in China-listed gold ETFs have increased by 82 tonnes so far this year, compared to an increase of 53.3 tonnes in all of 2024," the note said.
