Stock Pick

  • China’s Zara rival is expanding — and it’s setting its sights on London and NYC next

    Urban Revivo in Shanghai, China
    Urban Revivo plans to expand to US and UK markets amid sluggish Chinese consumer demand.

    Costfoto/Getty Images

    • Facing a weaker Chinese market, Urban Revivo plans on expanding to the West.
    • Urban Revivo's physical stores could help it break through to the US market, where it sells online.
    • Other fast-fashion peers have seen successes in the UK and US markets.

    A Chinese fast-fashion company is planning a quick global expansion, just as industry heavyweights slow their growth to focus on online shopping.

    Zara has been cutting its footprint post-pandemic, with plans to slash as many as 1,200 stores and double down on e-commerce.

    But China's Urban Revivo, founded in 2006, is eyeing markets well outside of Asia. Parent company Fashion Momentum Group wants to open in cities including London and New York, CEO Leo Li told Nikkei Asia.

    FMG now has over 400 Urban Revivo outlets in mainland China and a handful across Southeast Asia. Its only foothold in Western markets has been via online shopping.

    Next year, FMG plans to launch 20 international Urban Revivo stores annually, a number that could accelerate to 50 per year in the long term, Li said.

    He told Nikkei he hopes to expand the company to a $13.8 billion valuation — still well below competitors like Zara and H&M, whose parent companies have market capitalizations of around $155 billion and $23 billion, respectively. Zara has about 2,000 stores globally, while H&M has about 3,800.

    FMG is also weighing an initial public offering in Hong Kong, which could raise $100 million, Bloomberg reported last month.

    FMG's focus on Europe and the US comes as some of its industry peers excel in those markets. Japan's Fast Retailing, the parent company of brands including Uniqlo, reported strong sales from North American and European markets in the first half of 2024, while business in China has declined.

    Softening Chinese consumer demand has also hurt Urban Revivo's sales, which relies on brick-and-mortar stores more than its increasingly digital competitors, reported Nikkei Asia.

    FMG might fare a little better in the US. The quick adoption of Chinese brands like Shein and Temu shows that US consumers are comfortable with foreign brands, Damien Yeo, an analyst from Fitch Solutions, told Business Insider. But FMG would face a fashion-saturated America, with competition from other domestic and foreign brands like Uniqlo.

    US shoppers are "increasingly price-sensitive," Yeo said. "This means that fast-fashion companies are expected to do well as consumers trading down price points is often good news for them, since their products primarily target the mass market."

    Brick-and-mortar Urban Revivo outlets could translate to fewer ethical and political concerns than online "ultra-discounters" such as Shein and Temu, said Yeo.

    London is not a new stomping ground for the brand, which opened its first-ever UK store in 2018 — a store that has since closed. However, London might be another tough sell. Yeo said that the UK's sticky inflation numbers might spell trouble for Urban Revivo's sales, as consumers are pulling back on discretionary spending.

    The company did not respond to requests for comment.

    Read the original article on Business Insider

  • ASX 200 to finish 2024 higher than expected: AMP

    A group of friends party and dance in the desert with colourful confetti all around them.

    AMP Ltd (ASX: AMP) has revised its end-of-year forecast for the S&P/ASX 200 Index (ASX: XJO) from 7,900 points to 8,100 points.

    The upgrade follows the ASX 200 cracking the 8,000 mark for the first time on Monday.

    The market benchmark reset its all-time record high again yesterday when it reached an intraday peak of 8,083.7 points.

    On Thursday, the market is down 0.33% to 8,031.7 points at the time of writing.

    The market wobbled today on news of a minute rise in the unemployment rate last month, which prompted new speculation about the Reserve Bank’s next move on interest rates.

    Let’s see what AMP chief economist Dr Shane Oliver has to say about the ASX 200’s path from here.

    ‘Roundaphobia’ may charge up market exuberance

    AMP expects the ASX 200 to rise in value by 6.7% (excluding dividends) in 2024, finishing the year at about 8,100 points.

    Its original forecast, published in May, was for the ASX 200 to finish at about 7,900 points.

    In a blog, Dr Oliver said the upgrade reflected “prospects for lower interest rates globally and eventually in Australia boosting the growth outlook next year”.

    He added that the ASX 200 pushing through a big round number was psychologically significant for investors. He said this milestone may inject “roundaphobia” exuberance into the market, with more investors feeling inspired to invest and thereby possibly pushing the benchmark’s value higher.

    3 factors driving the ASX 200 higher

    Dr Oliver explained there were three factors that drove the ASX 200 to its new record high this week.

    1. Renewed optimism about interest rate cuts in the United States

    Last Friday, we got the news that the US consumer price index (CPI) fell 0.1% between May and June. That put the annual rate at 3%, which was reportedly the lowest figure in more than three years.

    Dr Oliver said:

    A US rate cut is now fully priced in for September with nearly three cuts priced in by year end. This follows cuts in Switzerland, Sweden, Canada and Europe.

    Lower interest rates offer the prospect of better global growth in 2025 and they also help improve share market valuations. This has further boosted global shares, pulling Australian shares up.

    2. What happens in the US will eventually happen to the ASX 200

    Better prospects of a rate cut in the US have lifted hopes that the Reserve Bank will not raise rates here.

    Dr Oliver said:

    Consequently, we have seen money market expectations swing from around 70% probability of another hike by year end a few weeks ago to now just 16%.

    This has further helped boost interest sensitive Australian shares.

    3. Signs of rotation from tech to cyclical shares

    Dr Oliver said there were signs of a rotation from tech shares, which typically offer higher long-term growth potential, to value shares and cyclical stocks.

    ASX 200 value and cyclical shares are more likely to benefit from rate cuts and any associated economic growth.

    Dr Oliver said:

    This has been most evident in the US with a resurgence in small caps, with the Russell 2000 small cap index up more than 11% in the last week, but it may also benefit the relatively cyclical Australian share market.

    Despite these three positive factors, Dr Oliver warned of a “volatile and more constrained outlook” ahead.

    ‘High risk of correction’ in August/September

    Dr Oliver said an ASX 200 share correction may occur in August/September, which may present buying opportunities for investors.

    Dr Oliver said:

    But given risks around valuations, near term growth and geopolitics, we anticipate a volatile and more constrained outlook with a high risk of a correction in the August to September period, particularly if investors factor in the more negative economic implications of a Trump victory.

    He clarified that August/September was historically a seasonally weak period for the market.

    The post ASX 200 to finish 2024 higher than expected: AMP appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Amp Limited right now?

    Before you buy Amp Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Amp Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 10 July 2024

    More reading

    Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why are ASX uranium shares having a week to forget?

    Three miners looking at a tablet.

    ASX uranium shares are experiencing a tough week. At the time of writing, all but one of the major uranium stocks is in the red.

    Despite market-sensitive announcements for only one company, it hasn’t stopped investors from selling down the sector today. Here’s the performance on Thursday at the time of writing:

    • Paladin Energy Ltd (ASX: PDN): down 3.83%, at $12.92
    • Deep Yellow Ltd (ASX: DYL): down 4.73%, at $1.31
    • Boss Energy Ltd (ASX: BOE): down 1.92%, at $3.84
    • Bannerman Energy Ltd (ASX: BMN): down 1.63%, at $3.02
    • Peninsula Energy Ltd (ASX: PEN): flat, at 11 cents apiece

    Whilst it’s been relatively quiet from the companies’ ends, it’s worth noting that the energy regulator has potentially ruled out nuclear as the country’s energy solution.

    The Australian Energy Market Operator (AEMO) has chimed into the debate, and its comments could be one reason investors appear spooked today. Let’s take a look.

    AEMO’s stance on nuclear power

    Whilst not market-sensitive in any way, comments by Daniel Westerman, chief executive of the AEMO, could be one factor contributing to the decline in ASX uranium shares today.

    According to its website, AEMO’s role is to “manage the electricity and gas systems and markets across Australia, helping to ensure Australians have access to affordable, secure and reliable energy”.

    Speaking at the Clean Energy Summit on Tuesday, Westerman waved off nuclear power as a potential solution to Australia’s energy needs. He cited costs and timing as the main reasons.

    Even on the most optimistic outlook, nuclear power won’t be ready in time for the exit of Australia’s coal-fired power stations.

    And the imperative to replace that retiring coal generation is with us now.

    He labelled nuclear power as “comparatively expensive” and impractical for replacing coal-fired generators in the near term. This may have ramifications on ASX uranium shares.

    With coal plants shutting down faster than anticipated, the push for renewable energy sources – like wind and solar – could be the preferred path.

    Westerman said AEMO doesn’t determine whether one type of energy supply is “good or bad” but is “focused on finding the least-cost path to reliable and affordable energy for Australian consumers”.

    Apparently, this path of least resistance doesn’t include nuclear. This outlook could diminish the near-term prospects for uranium shares.

    ASX uranium shares in focus

    The overall sentiment in the uranium market has been shaky. Despite some positive developments, including potential supply constraints due to new tax policies in Kazakhstan, investor confidence remains fragile.

    Deep Yellow is the only ASX uranium share that actually announced something today. The company posted its presentation from the Noosa Mining Investor Conference.

    In it, the company touted its “significant exploration upside” and “significant production capacity”. It also discussed the case for uranium as “critical for a clean energy future”.

    Time will tell if this statement is to be true or not.

    Foolish takeout

    Some might think the recent dip in ASX uranium shares presents a buying opportunity, especially if they believe in the long-term potential of nuclear energy.

    However, the market remains highly volatile, and the political and regulatory situation regarding energy security does not help. As always, stay informed.

    The post Why are ASX uranium shares having a week to forget? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bannerman Resources Limited right now?

    Before you buy Bannerman Resources Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bannerman Resources Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 10 July 2024

    More reading

    Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why did the ASX 200 dip on the latest unemployment figures?

    a line up of job interview candidates sit in chairs against a wall clutching CVs on paper in an office setting.

    The S&P/ASX 200 Index (ASX: XJO) dived 0.18% immediately after the latest unemployment data was released by the Australian Bureau of Statistics (ABS) on Thursday.

    The data revealed a less than 0.1% rise in the unemployment rate to 4.1% in June in seasonally adjusted terms. This compares to an unemployment rate of 4% in May, 4.1% in April, and 3.8% in March.

    The ASX 200 was already down 0.12% for the day when the jobs data was released at 11.30am AEST.

    The index initially fell a further 0.18% in the first 10 minutes after the data was released. ASX 200 shares then rebounded and recovered almost all of that loss by midday.

    Then they spiralled down again, losing 0.22% by 12.30pm. Then up they went again.

    Overall, the ASX 200 is down 0.23% at the time of writing, which is where it was just before the data came out.

    So, why was the market’s reaction to the new jobs numbers so erratic?

    ASX 200 topsy turvy after jobs news released

    Well, it’s a case of good news/bad news here.

    For many months, the market has been waiting with bated breath for any indication that an interest rate cut may be on the cards.

    Then, last month’s higher-than-expected inflation numbers prompted speculation that a rate rise may come first. Inflation for the 12 months to May was 4%, up from 3.6% in the 12 months to April. Eek.

    So, the market is nervous about interest rates right now.

    That brings us to the good news/bad news element of today’s unemployment figures.

    The ‘good’ news is that unemployment went up. The reason that is ‘good’ news is because historically, inflation won’t go down without a rise in unemployment.

    And everyone wants inflation to go down, because that’s our ticket to interest rate cuts.

    So, last month’s small uptick in unemployment represents progress toward lower inflation.

    But it’s the pace of progress that is the bad news here.

    The unemployment rate lifted by less than 0.1% last month. It’s now back to where it was in April. So, over the past two months, it’s fair to say the jobs market has been incredibly resilient and stable.

    Resilient jobs tend to mean businesses are going well. They’re making enough money to retain staff and even hire more. But it also means the progress on bringing inflation down appears to be stalling.

    And that is something the Reserve Bank of Australia is concerned about. Governor Michele Bullock has explained on many occasions that if the board feels inflation is not moving sustainably toward the target 2% to 3% band, the board will not hesitate to do what is necessary (i.e., raise rates) to achieve this goal.

    The jobs data in detail

    Employment rose by 50,200 people — which was twice consensus estimates — and the number of unemployed persons rose by 9,700.

    The participation rate rose to 66.9%, which is only 0.1% lower than the historical high of 67% recorded in November 2023.

    Bjorn Jarvis, ABS head of labour statistics, said:

    The employment-to-population ratio and participation rate both continue to be near their 2023 highs. This, along with the continued high level of job vacancies, suggests the labour market remains relatively tight, despite the unemployment rate being above 4.0 per cent since April.

    Jarvis said more people than usual worked reduced hours in June due to illness, and fewer people took annual leave.

    He commented:

    In June, we continued to see more people than usual working reduced hours because they were sick, similar to what we saw in May.

    Around 4.5 per cent of employed people in June could not work their usual hours because they were sick, compared to the pre-pandemic average for June of 3.6 per cent.

    However, we also saw less people taking annual leave in June 2024. There were around 12.5 per cent of people working fewer hours because they were on leave, compared with the pre-pandemic average for June of 14.5 per cent.

    The underemployment rate fell 0.3% to 6.5%.

    What does all this mean?

    The labour market is “too strong for inflation to fall”, according to VanEck’s head of investments and capital markets, Russel Chesler (courtesy Australian Financial Review (AFR)).

    Chesler said:

    It’s a tough pill to swallow, but the reality is that an unemployment figure of at least 4.5 per cent would be needed to cool inflation.

    With inflation coming in at 4% in May, Chesler thinks the RBA will have to raise rates to knock inflation back onto a sustainable downward trajectory.

    This is the only way to push inflation back into the RBA’s target range. The RBA did not go as hard as other developed economies with rate rises, and we are now seeing this play out with escalating inflation. It’s time for the RBA to rip the band-aid off.

    But State Street’s Asia Pacific economist, Krishna Bhimavarapu, maintains her view that the RBA will cut rates in November.

    Bhimavarapu said:

    The key takeaway is that the unemployment rate increased by a tenth to 4.1 per cent …

    We continue to view an August rate hike to be a bad idea, and still think the cash rate will be cut in November.

    The big test for the economy will come on 31 July when the second quarter inflation data is released.

    The RBA pays much more attention to quarterly inflation data given monthly readings do not cover all goods and services and, thus, are notoriously volatile.

    The Reserve Bank’s next board meeting to discuss interest rates is scheduled for 5-6 August.

    Energy shares lead the ASX 200 on Thursday

    Energy shares are leading the ASX 200 today, with the S&P/ASX 200 Energy Index (ASX: XEJ) up 0.49%.

    Woodside Energy Group Ltd (ASX: WDS) shares are up 1.05%, and Santos Ltd (ASX: STO) is up 1% on rising oil prices. Brent crude is up 0.45% at US$85.45 per barrel at the time of writing.

    Oil prices are rising due to a larger-than-expected drawdown in US crude inventories, according to Trading Economics.

    The post Why did the ASX 200 dip on the latest unemployment figures? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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    Motley Fool contributor Bronwyn Allen has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Buy these top ASX ETFs for income in FY 2025

    Exchange-traded funds (ETFs) don’t just provide investors with access to growth stocks or indices. They can also be used to generate income.

    For example, listed below are two ASX ETFs that provide investors with access to groups of dividend shares.

    Here’s why they could be top options for income investors in the new financial year:

    Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

    The first ASX ETF for income investors to look in FY 2025 is the Betashares Australian Top 20 Equity Yield Maximiser Fund.

    It aims to generate attractive quarterly income and reduce the volatility of portfolio returns by implementing an equity income investment strategy over a portfolio of the 20 largest blue-chip shares listed on the Australian share market. It does this using something called a covered call strategy.

    The fund manager recently recommended the ETF as an option to counter falling dividend yields. It said:

    YMAX is an investment option for those seeking quarterly distributions and reduced portfolio volatility. […] Betashares’ range of Yield Maximiser funds use a covered call strategy to offer additional income over and above dividends generated by the portfolio. This approach takes a two-pronged strategy: earning dividends from the underlying stocks and generating income from writing call options on those shares. A covered call strategy performs well in a neutral or gradually rising market, allowing call options to generate income without stocks being called away too often, as has been seen in recent months.

    It currently trades with a trailing 12-month dividend yield of 7.8%.

    Vanguard Australian Shares High Yield ETF (ASX: VHY)

    Another ASX ETF for income investors to look at in FY 2025 is the Vanguard Australian Shares High Yield ETF.

    This ETF doesn’t use a covered call strategy. It just focuses on loading up with ASX dividend shares that brokers are forecasting to provide big dividend yields.

    But this doesn’t just mean you buy banks and miner. The fund is designed to provide investors with a diverse group of approximately 70 shares and limits how much it invests in any particular industry or company.

    At present, you will find companies such as BHP Group Ltd (ASX: BHP), Coles Group Ltd (ASX: COL), Commonwealth Bank of Australia (ASX: CBA), and Transurban Group (ASX: TCL) among its holdings.

    The Vanguard Australian Shares High Yield ETF currently trades with a trailing dividend yield of 5%.

    The post Buy these top ASX ETFs for income in FY 2025 appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 July 2024

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • The Trump-Vance campaign says they won’t agree to a VP debate date until Kamala Harris picks ‘her running mate’

    Composite image of JD Vance and Kamala Harris
    Newly elected Republican vice presidential candidate Sen. JD Vance and US Vice President Kamala Harris.

    Alex Wong/Getty Images, Justin Sullivan/Getty Images

    • The Trump-Vance campaign won't agree to a date for a vice presidential debate. 
    • They say they'll be down for it once Harris picks "her running mate."
    • The jab refers to ongoing turmoil in the Democratic Party over whether Biden will remain on the ticket.

    The Trump-Vance campaign is seemingly operating under the assumption that President Joe Biden will quit the race soon and let his Vice President Kamala Harris run for president.

    The GOP campaign recently declined to schedule a vice-presidential debate with Harris, saying they don't know who "her running mate" is yet.

    "We don't know who the Democrat nominee for Vice President is going to be, so we can't lock in a date before their convention," former President Donald Trump's senior campaign advisor Brian Hughes said in a statement on July 17.

    "To do so would be unfair to Gavin Newsom, JB Pritzker, Gretchen Whitmer, or whoever Kamala Harris picks as her running mate," Hughes added.

    He referred to the Democratic National Convention, set to take place in Chicago from August 19 to 22. Biden and Harris are the presumptive Democratic nominees.

    Harris had already agreed to a CBS News VP debate invitation. Although Trump just picked Vance as his running mate on Monday, he had accepted Fox News' invitation on behalf of his future VP two months ago, per Newsweek.

    Biden-Harris communications director Brian Fallon told Business Insider that the Trump-Vance campaign was trying to back down from having to debate Harris live.

    "Donald Trump is the one whose campaign said he would debate 'anytime, anyplace' and who picked JD Vance specifically for his debating skills," Fallon said.

    He added: "Now suddenly, right after a damning new leak showing his support for a nationwide abortion ban, Vance is backing off a debate against Vice President Harris, who has spent the last two years prosecuting the case on behalf of reproductive freedom."

    The communications director referenced Vance's hard stance on abortion. In 2022, Vance said he "would like abortion to be illegal nationally."

    "This debate has been discussed for two months now. If JD Vance is unwilling to defend the Trump-Vance record on the debate stage, he should just say so," Fallon continued.

    Representatives for the Trump-Vance campaign did not immediately respond to requests for comment from BI sent outside regular business hours.

    This is not the first time Trump's campaign has acknowledged that it might be up against Harris for the presidency.

    Following Biden's disastrous CNN debate performance in June, Trump posted a video on his Truth Social account on July 3. In the clip, he discussed the possibility of running against Harris rather than Biden.

    "I got him out the race, and that means we have Kamala," Trump said in the clip.

    In anticipation of a switch of candidates, Trump has already come up with nasty nicknames for Harris, including "Laffin' Kamala Harris" and "Cackling Copilot Kamala Harris."

    Biden is hanging on, saying on Friday that he plans to quit only if he is "hit by a train."

    However, he faces mounting pressure from within his own party to step aside.

    Senate Democratic Leader Chuck Schumer told Biden in private on Saturday to withdraw from the race, according to ABC News.

    On Wednesday, Rep. Adam Schiff of California became the highest-profile Democrat to publicly call on Biden to drop his bid.

    And later on Wednesday, CNN reported that Rep. Nancy Pelosi spoke to Biden last week, telling him that polls showed him losing to Trump.

    At least 20 House Democrats and one Democratic senator have asked Biden to step aside.

    While Biden has not said if he'd be willing to make way for his vice president, he heaped praise on her at a Tuesday NAACP event, saying she "could be president of the United States."

    Read the original article on Business Insider

  • JD Vance leans head first into Trump populism in his first major moment

    JD Vance speaks during preparations for the Republican National Convention
    Sen. JD Vance of Ohio gave the keynote speech for the third day of the Republican National Convention.

    Alex Wong/Getty Images

    • Sen. JD Vance of Ohio gave his high-profile VP acceptance speech on Wednesday night at the RNC.
    • Donald Trump made Vance his VP pick, anointing a MAGA heir apparent. 
    • Vance repeatedly referenced the three key battleground states of Pennsylvania, Michigan, and Wisconsin.

    Sen. JD Vance of Ohio on Wednesday railed against decades of American policy in his major national moment as the Republican vice presidential nominee.

    Like former President Donald Trump, Vance underlined a populist Republican Party to the point that he came out to a Merle Haggard hit that was written in protest of the war in Iraq.

    "From Iraq to Afghanistan, from the financial crisis to the great recession, from open borders to stagnating wages, the people who govern this country have failed and failed again," Vance said. "That is, of course, until a guy named Donald J. Trump came along."

    It was, of course, President George W. Bush, a Republican, who championed the Iraq War. Vance also tore into NAFTA, a bipartisan trade deal negotiated by GOP President George H.W. Bush and finished by Democratic President Bill Clinton. Clinton passed NAFTA with major Republican support.

    Vance returned to the theme that "America's ruling class" ruined hometowns like where he grew up in Middletown, Ohio.

    He leaned into his backstory, which he recounted at length in "Hillbilly Elegy," a book that went on top bestseller lists and was later adapted into a Netflix movie.

    "To people of the Middletown, Ohio, and all the forgotten communities in Michigan, Wisconsin, Pennsylvania, and Ohio, and in every corner of our nation, I promise you this: I will be a vice president who never forgets where he came from," Vance said.

    The Trump campaign hopes that this background will help their ticket appeal to working-class voters in key battleground states like Pennsylvania, Michigan, and Wisconsin. But in the one race Vance has run thus far, he ran far behind other Republicans. He struggled in suburban areas, an especially troubling fact given Trump's lengthy struggles in similar places.

    Vance repeatedly called out those three states throughout his speech, underlining the Trump campaign's focus on what were once the so-called "Blue Wall states." Biden's likely best path to reelection requires him to sweep the three states.

    Biden's campaign said "working families" would suffer if Vance is elected.

    "JD Vance is unprepared, unqualified, and willing to do anything Donald Trump demands," Biden-Harris 2024 Communications Director Michael Tyler said in a statement.

    If Republicans win this November, Vance would be one of the youngest vice presidents in the nation's history. Vance has a strikingly short political résumé. He has served in the US Senate for all of 18 months. Before politics, he worked in the private sector and served in the Marine Corps.

    Vance emphasized his age during his speech, contrasting a moment in his life with a decision President Joe Biden supported.

    "When I was in the fourth grade, a career politician by the name of Joe Biden supported NAFTA, a bad trade deal that sent countless good jobs to Mexico," Vance said.

    In selecting Vance, Trump eschewed the traditional considerations in finding a running mate. Instead, the former president elevated a MAGA heir apparent.

    Vance was not always a staunch Trump supporter. President Joe Biden's campaign and other Democrats have happily unearthed Vance's repeated criticism of Trump when the Ohioian was a self-described Never-Trumper. Vance skipped over this history head-on during his address.

    Instead, he talked up his running mate, calling him "America's best last hope" to restore what Vance views as lost in modern America. It's a remarkable transition, given that during Trump's 2016 run, he called the future president "cultural heroin."

    "He makes some feel better for a bit," Vance wrote in The Atlantic in 2017. "But he cannot fix what ails them, and one day they'll realize it."

    On Wednesday, Vance repeated almost verbatim one of Trump's refrains about how he didn't need to take on the abuse of going into politics.

    "He chose to endure abuse, slander, and persecution, and he did it because he loves this country," Vance said.

    Left unmentioned and unexplored is how Trump's running mate once uttered some of those criticisms.

    Read the original article on Business Insider

  • Have ASX investors missed their chance to buy Woolworths shares?

    A woman ponders over what to buy as she looks at the shelves of a supermarket.

    With the S&P/ASX 200 Index (ASX: XJO) hitting a few new all-time highs over the past week, it goes without saying that it’s been a very lucrative period to own many ASX 200 shares in recent months. That sentiment holds if we take a look at Woolworths Group Ltd (ASX: WOW) shares.

    Woolworths’s share price performance during the first four months of 2024 was one of the worst it has experienced in years. The ASX 200 supermarket operator started the year at $37.51 a share.

    By early May, those same shares had hit a new 52-week low of just $30.12. Not only was that a new 52-week low for Woolworths, but it was also the lowest its shares had traded at since the early days of COVID-19 in May 2020.

    Investors reacted with dismay to Woolworths’ half-year earnings in February, which also unfortunately coincided with the abrupt resignation announcement of its outgoing CEO Bradford Banducci.

    The result was a steep descent to that four-year low we saw in May. At the time, I wrote about this share price sell-off, concluding that the company was in a rare moment of value and calling the shares a buy over Woolworths’ arch-rival Coles Group Ltd (ASX: COL). I also pointed out that the Woolworths dividend yield, which was north of 3.4% at the time thanks to this share price drop, was unusually high at the time.

    But ever since early May, Woolies has been slowly but steadily recovering. Today, Woolworths shares are trading at $35.15 each, up 0.43% for the day thus far. That means that the company is also up a whopping 16.3% or so from that 52-week low we saw in May today.

    Check that out for yourself below:

    Are Woolworths shares still a buy today?

    Anyone who bought this company back in May would be sitting very prettily indeed on a healthy gain right now. But what about investors considering buying in today? Are Woolworths shares still a buy at their current pricing?

    Well, those are hard questions to answer.

    But we do know something for certain: Woolworths shares offer far less value today than they did two and a half months ago.

    Back then, the company was offering a dividend yield of 3.4%. Today, it’s at 2.99%.

    Back then, Woolworths shares were trading on an annualised price-to-earnings (P/E) ratio of 20.2. Today, it would be on 23 or so.

    If Coles shares were the same ~$16 level they were in early May, I would say they represent better value today. However, Coles has also enjoyed a bit of a recovery in recent months, and today is up to around $17.63 a share.

    As such, we have to conclude that both companies don’t really represent a compelling buying opportunity today. Sure, in my view, Woolworths shares aren’t overvalued. They aren’t at the near-$40 pricing we were seeing last year.

    However, it’s still hard to call the company a screaming buy. If I owned Woolworths shares today, I wouldn’t be selling. But if I were looking to buy in, I’d probably wait for a better entry point.

    The post Have ASX investors missed their chance to buy Woolworths shares? appeared first on The Motley Fool Australia.

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  • Mark Cuban says Silicon Valley’s bet on Trump is a ‘Bitcoin play’

    Mark Cuban walking onto a court before a Dallas Mavericks game; Former President Donald Trump at the Republican National Convention.
    "Shark Tank" star Mark Cuban said that Silicon Valley's support for former President Donald Trump is a "Bitcoin play."

    Brian Fluharty via Getty Images; Kamil Krzaczynski/AFP via Getty Images

    • Tech billionaires like Elon Musk and Marc Andreessen are backing Donald Trump's presidential bid.
    • Mark Cuban says Silicon Valley's support Trump could be a bet on higher Bitcoin prices. 
    • The tax cuts, tariffs and uncertainty that comes with a Trump win will push prices, Cuban said.

    Mark Cuban says he has a "contrary opinion" on why Silicon Valley's tech titans have decided to back former President Donald Trump.

    "It's a Bitcoin play," the "Shark Tank" star wrote in an X post on Wednesday.

    Cuban explained that the outpouring of support wasn't so much because they saw Trump as a "far stronger proponent of crypto."

    "That's nice. But doesn't really impact the price of crypto. It makes it easier to operate a crypto business because of the inevitable, and required, changes at the SEC," Cuban wrote.

    "What will drive the price of BTC is lower tax rates and tariffs, which if history is any guide (and it's not always), will be inflationary," he continued.

    Trump's campaign has consistently advocated for slashing taxes and imposing tariffs on China and Europe, both of which were his signature economic policies when he was last in office.

    But that's not all, according to Cuban. The billionaire argued that the uncertainty often associated with Trump's mercurial approach toward foreign policy could help drive Bitcoin prices higher.

    "Combine that with global uncertainty as to the geopolitical role of the USA, and the impact on the US Dollar as a reserve currency, and you can't align the stars any better for a BTC price acceleration," he said in his post.

    Cuban said these factors meant that Bitcoin could become a global safe haven, with countries and people looking to purchase the cryptocurrency to protect their savings.

    Trump has become a bigger draw for tech billionaires this year, a sharp contrast from his first presidential campaign in 2016, when venture capitalist Peter Thiel was one of the few backers Trump had in Silicon Valley.

    The GOP nominee now has the support of Tesla CEO Elon Musk and venture capitalists David Sacks, Marc Andreessen, and Ben Horowitz.

    When approached for comment, Cuban told Business Insider he didn't think higher Bitcoin prices were the only factor driving Silicon Valley's support for Trump.

    "But it can be the most rewarding and simplest," he said. "It's a whole lot easier to check an app than it is to grow a company in an uncertain environment."

    https://platform.twitter.com/widgets.js

    Cuban isn't the only person who thinks a second Trump administration could hurt the US dollar's position as the world's main reserve currency.

    In February, the US chair of the Official Monetary and Financial Institutions Forum, Mark Sobel, said that Trump's tax cuts and tariffs would hurt dollar dominance even though Trump has pledged to maintain it.

    "Policy and actions speak louder than slogans," Sobel wrote in his paper earlier this year.

    To be sure, Trump's position on crypto has changed vastly ever since his first administration. In 2019, Trump said that he wasn't a fan of cryptocurrencies because their value is "highly volatile and based on thin air."

    https://platform.twitter.com/widgets.js

    But the GOP nominee seems to have revised his opinion on crypto. In an interview with Bloomberg Businessweek published Tuesday, Trump said that the US needs to embrace crypto lest China seize and dominate it.

    "Now, if I throw it aside, it's going to be picked up in another country, most likely China—they're pretty advanced in that sphere," Trump said. "I don't want to be responsible for allowing another country to take over this sphere."

    On Monday, Bitcoin prices surged to a two-week high, topping $62,000, after Trump survived an assassination attempt on Saturday.

    Representatives for Trump did not immediately respond to a request for comment from BI sent outside regular business hours.

    Read the original article on Business Insider

  • ‘Looks like greenwashing’: Accusations brought against superannuation funds

    A green bubble or balloon bursts on a man's face.

    Superannuation funds had an above-average year in FY24, with the average balanced fund returning 7.2% and the average growth fund returning 9.4% in the twelve months to May 31, 2024.

    This compares to five-year averages of 5.1% and 6.7%, respectively. With these kinds of returns, investors might be wondering where their funds are actually invested.

    Some super members have done the digging and are unhappy with some of the results found in various super funds’ environmental, sustainability and governance (ESG) investing options.

    The funds are now facing accusations of ‘greenwashing’, with AustralianSuper at the centre of the controversy.

    Superannuation funds in the spotlight

    Despite promising ethical investments as part of its ‘Socially Aware’ product, AustralianSuper has been found investing in coal, oil, and gas industries, according to The Australian Broadcasting Corporation.

    The reporting notes that the fund’s latest financial disclosures, which list its holdings as at the end of December, show it has invested members’ savings in the shares of petrol retailer and distributor Ampol Ltd (ASX: ALD) and resources player Mineral Resources Ltd (ASX: MIN).

    An AustralianSuper member was shocked to discover that his Socially Aware option was invested in these fossil fuel companies.

    He believed his superannuation was ‘ethically’ invested, only to find a supposed loophole that allowed investments in property, infrastructure, and direct loans to coal, oil, and gas companies. Huh?

    According to AustralianSuper, it only screens Australian and international shares for its Socially Aware option – not other asset classes like fixed income, the ABC reports.

    All the investments in question are classified as ‘credit’, or direct loans to companies, in the form of corporate bonds, that provide fixed income to investors. Per the ABC:

    AustralianSuper’s financial disclosures show it has been lending members’ funds to fossil fuel companies around the world, including Indonesian coal miner Adaro, Canadian oil and gas company Baytex and US-based Magnolia Oil and Gas.

    “It looks like greenwashing”, the member said, adding that he has taken his complaint to the Australian Securities and Investment Commission (ASIC).

    Regulatory reactions

    ASIC deputy chair Sarah Court said the regulator had looked into the matter, but did not find sufficient evidence to prove that AustralianSuper misled its members.

    Court acknowledged the concerns about the wording of AustralianSuper’s policies but said there still wasn’t enough flesh to put on the skeleton to form a case.

    We think these statements on AustralianSuper’s website go pretty close to crossing a line for investors.

    On this occasion, we found it didn’t cross that line into being misleading.

    The fund reportedly plans to announce changes to its investment policies following a separate ABC investigation showing it held more than $26 million worth of shares in companies involved in nuclear weapons.

    Superannuation doubling down on fossil fuels

    It would appear this trend has been in situ for some time. Environmental advocacy group Market Forces crunched the numbers in May.

    It found that Australia’s largest 30 super funds had doubled their investments in “high-emitting companies” over the past two years.

    The total investment reached $39 billion. Meanwhile, clean energy investment from super funds decreased to $7.7 billion.

    It created a “climate wreckers” index to track the exposure of superannuation funds to the high-emitting names. UniSuper was on top, with $2.2 billion exposure to this index.

    Meanwhile, Commonwealth Super and MLC had more than $1 billion exposure each.

    AustralianSuper had $9.8 billion of funds invested in these companies. But, this made up just 9.7% of its total funds under management. It made up more than 10% of the others.

    The report also found that Woodside Energy Group Ltd (ASX: WDS) could make up to 20% of AustalianSuper’s investment value.

    What’s the path forward?

    While this controversy relates to ESG-style products, Superannuation funds face a challenging path ahead, regardless of what happens with these accusations.

    Investors are also opting to manage their own super more and more. As reported by my colleague Bronwyn, a recent survey found there are more than 616,000 self-managed super funds (SMFs) in Australia.

    This came as more than 18,000 SMSFs were set up in 2023. SMSFs could also give more investor optionality in certain cases, adding to the appeal.

    The question now is what this means moving forward. After a decent year in returns, will most investors support a shift away from the current regime?

    Only time will tell what this means for the superannuation industry.

    The post ‘Looks like greenwashing’: Accusations brought against superannuation funds appeared first on The Motley Fool Australia.

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