Daily Archive: July 8, 2020

Chinese factories to face headwinds in next phase of post-lockdown recovery By Reuters

© Reuters. FILE PHOTO: Employee works on a production line inside a Dongfeng Honda factory in Wuhan


By Stella Qiu and Ryan Woo

BEIJING (Reuters) – Orders for infrastructure materials and equipment have helped industrial output recover faster in China than most places emerging from COVID-19 lockdowns, but further expansion will be hard to attain without stronger broad-based demand and exports.

Prices of and steel have surged and share prices for Chinese blue chips struck five-year highs, as state-funded infrastructure projects drove up production of cement, steel and non-ferrous metals.

Railway investment, for example, soared 11.4% in April-June from a year earlier versus a 21% drop in the first quarter.

Industries also gained from pent-up demand for autos and electronics. The property sector, a pillar of growth, also showed signs of rebounding, with real estate investment expanding and sales quickening.

China’s factory-gate prices, still in deflation territory this

Read More

Upset that you missed the rally? Trying to play catch-up could be worse

The first half of 2020 has been the most volatile period for investors since the 2008 financial crisis. Having just passed the halfway mark, many investors will be reviewing their portfolios’ performance, trying to gauge just how well they survived the turbulence. But in doing so, it’s important to remember that how you conduct such an evaluation can have significant consequences: the traditional use of a static benchmark may not tell you very much at all, and in fact may lead to some bad decisions going forward.

This is because your portfolio can underperform or outperform depending on what weightings and components of the benchmark are chosen in its construction.

For example, during the resource run from 2000 through to 2008, Canadian equity markets and emerging markets were the place to be, and outperformed U.S. equities still reeling from the bursting of the tech bubble.

However, over the past decade

Read More

Shares of obscure biotech firm Novavax soar 32% on coronavirus vaccine funding

Subscribe to Bull Sheet for no-nonsense daily analysis on what’s happening in the markets, delivered free to your inbox.

Investors rushed to embrace Novavax, a little known Maryland drug company, after the U.S. government awarded it $1.6 billion to produce 100 million doses of a covid vaccine.

Novamax shares closed closed near $105 on Tuesday, a 32% increase from their opening price. This latest rally caps a remarkable 2020 for the company, whose stock traded near $5 at the start of the year, and which had been dogged with rumors of an impending bankruptcy.

The government’s decision to grant Novavax such a large contract is remarkable given that Novavax has never brought a drug to market, and because other firms that received money under the same program—known as Operation Warp Speed—include drug industry titans like Johnson & Johnson and Astra Zeneca.

In a statement, Novavax said it will use … Read More