By Jihoon Lee and Joyce Lee SEOUL (Reuters) – South Korea will provide $400 million in financial support to small businesses hit by payment delays on two Qoo10 e-commerce platforms and the Singapore-based firm’s founder pledged to use his own assets to help compensate customers and vendors. Seoul-based TMON and WeMakePrice on Monday filed for corporate rehabilitation in the Seoul Bankruptcy Court, Yonhap news agency reported, after failing to make payments to merchants using their platforms since early July, with Qoo10 saying the problem was triggered by a glitch in its payment system. The payment delays have prompted South Korean financial authorities to launch an investigation, some vendors to cut ties and long lines of customers at offices of both platforms last week demanding refunds. Missed payments by the e-commerce platforms have grown to around 210 billion won ($152 million), the government estimates. South Korean financial authorities said they will provide low-interest loans for affected small businesses as well as extensions on repayments of existing loans and on tax payments. “The government will utilise all available resources to minimise the damage,” Vice Finance Minister Kim Beom-seok told reporters. Later on Monday, South Korea’s prosecutor general ordered that a designated team investigate the case, Yonhap reported. Spokespeople for Qoo10, TMON, WeMakePrice and the Supreme Prosecutors’ Office could not be reached for immediate comment. Ku Young-bae, the South Korean founder and CEO of Qoo10, apologised on Monday and said Qoo10 would secure emergency liquidity by drawing on overseas funds or by disposing of assets and stakes or using them as collateral. “I will sell or use my entire stake in Qoo10, which is most of my assets, as collateral and use it to resolve this situation,” he said in a statement. Qoo10 said it estimated damages to customers at around 50 billion won but it was difficult to give a figure for vendors. The company has told authorities it aims to secure $50 million to remedy the situation but no detailed plan has been submitted, according to South Korea’s Financial Services Commission. Affected vendors told reporters on Monday more than two months of revenue are tied up due to South Korean e-commerce firms’ practice of settling payments months afterward, and for small vendors facing layoffs and even bankruptcy, Qoo10’s announced remedy – shouldering delayed interest payments and reduction of sales fees – were sorely inadequate. “We have hundreds of millions of won tied up in this situation,” BoYoung Jung, executive at healthcare product firm ANL, said at a press conference of affected stakeholders. “Why should we shoulder the loans? Why doesn’t the government lend to TMON, and they pay us?… As for the remedy, it looks to us like they’re just trying to buy time.” Qoo10 also has operations in Japan, North America, China, Hong Kong, Malaysia and Indonesia, according to its website, and owns two other South Korean e-commerce firms. Qoo10’s Japanese business, however, was acquired by U.S. e-commerce firm eBay (NASDAQ:) in 2018 and Qoo10.jp currently had no ties or capital relationship with Qoo10, eBay Japan said. Qoo10 has not responded to Reuters requests for comment about the health of its other operations. ($1 = 1,380.39 won) !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post South Korea to support vendors hit by Qoo10 payment delays, founder pledges compensation By Reuters first appeared on Forex Trader Hub.

EUR/USD spun in place on Wednesday after Fed met expectations. The Fed continues to wait for signs of easing inflation, but looking hopeful. Friday’s US NFP to have extra weight after Fed flags labor data as key to rate cuts. EUR/USD churned near key technical levels on Wednesday after the Federal Reserve (Fed) held rates steady for one last meeting as markets had broadly anticipated. The slow race to September’s Fed rate call kicks off on Friday with the latest print of US Nonfarm Payrolls (NFP) for July. Read more: Jerome Powell speaks on rate outlook after keeping policy settings unchanged EU data remains limited for the back half of the trading week, leaving investors to focus squarely on upcoming US NFP figures. Median market forecasts are hoping for a continued easing in the US jobs market, calling for net job additions of 175K in July, down from the previous print of 206K. Federal Reserve Chairman Jerome Powell outlined the specific conditions required for the Fed to implement a rate cut in September. These include ongoing improvements in inflation trends and the US labor market remaining stable or showing further weakening. This provides the markets with a clear benchmark for the upcoming important US economic data releases. The upcoming US Nonfarm Payrolls report, expected to be released on Friday, is anticipated to meet at least one of the Fed’s criteria, as it is projected to show a further decrease in job additions for July. EUR/USD technical outlook Fiber bids are hung up on the 50-day Exponential Moving Average (EMA) at 1.0818, and middling price action has EUR/USD grinding into a fresh technical middle just north of the 200-day EMA at 1.0796. The pair is still down from the last swing high that fell just short of 1.0950, but downside momentum is getting squeezed out by a price floor from long-term technical averages. Bidders are set for another attempt to push Fiber back into the high end as a choppy descending channel keeps bullish momentum crimped. EUR/USD daily chart Nonfarm Payrolls FAQs Nonfarm Payrolls (NFP) are part of the US Bureau of Labor Statistics monthly jobs report. The Nonfarm Payrolls component specifically measures the change in the number of people employed in the US during the previous month, excluding the farming industry. The Nonfarm Payrolls figure can influence the decisions of the Federal Reserve by providing a measure of how successfully the Fed is meeting its mandate of fostering full employment and 2% inflation. A relatively high NFP figure means more people are in employment, earning more money and therefore probably spending more. A relatively low Nonfarm Payrolls’ result, on the either hand, could mean people are struggling to find work. The Fed will typically raise interest rates to combat high inflation triggered by low unemployment, and lower them to stimulate a stagnant labor market. Nonfarm Payrolls generally have a positive correlation with the US Dollar. This means when payrolls’ figures come out higher-than-expected the USD tends to rally and vice versa when they are lower. NFPs influence the US Dollar by virtue of their impact on inflation, monetary policy expectations and interest rates. A higher NFP usually means the Federal Reserve will be more tight in its monetary policy, supporting the USD. Nonfarm Payrolls are generally negatively-correlated with the price of Gold. This means a higher-than-expected payrolls’ figure will have a depressing effect on the Gold price and vice versa. Higher NFP generally has a positive effect on the value of the USD, and like most major commodities Gold is priced in US Dollars. If the USD gains in value, therefore, it requires less Dollars to buy an ounce of Gold. Also, higher interest rates (typically helped higher NFPs) also lessen the attractiveness of Gold as an investment compared to staying in cash, where the money will at least earn interest. Nonfarm Payrolls is only one component within a bigger jobs report and it can be overshadowed by the other components. At times, when NFP come out higher-than-forecast, but the Average Weekly Earnings is lower than expected, the market has ignored the potentially inflationary effect of the headline result and interpreted the fall in earnings as deflationary. The Participation Rate and the Average Weekly Hours components can also influence the market reaction, but only in seldom events like the “Great Resignation” or the Global Financial Crisis.   Source link The post EUR/USD cycles familiar levels as NFP jobs dump looms ahead first appeared on Forex Trader Hub.

Listings for pairs of Donald Trump’s limited-edition orange Bitcoin-themed sneakers have already made their way onto eBay, with scalpers hoping to sell their spot in the pre-order queue for as much as $2,500.  At the time of writing, there are 12 listings on eBay for the ‘Bitcoin orange’ colored high-tops. Prices start as low as $700 via a live auction but range as high as $2,500 with a “or best offer” condition. One offer jokingly set a price of $69,999. Trump’s Bitcoin sneakers are being listed on eBay for $2,500. Source: eBay However, there’s no telling if the sellers will keep their word or if the listings are legitimate. Most of the listings promise to ship the footwear to their buyer once they receive it, which is expected between September and November. Most of the sellers appear to have high ratings, though more than one has been accused of being a “scam” in the buyer feedback section. Trump’s Bitcoin-themed footwear went live for pre-order on the official Trump Sneakers website on July 31, with a limited edition run of 1,000 for the orange high-top shoes. They sold out within three hours of launch. Notably, the website said five pairs of the limited edition shoes would be randomly signed by Trump — meaning that Trump sneakerheads would have a 1 in 200 chance of receiving a signed pair. Another two variations of the sneakers have yet to appear on eBay. They’re still marked as available on the Trump Sneakers website despite only 1,000 of each. The orange low-tops and black hi-tops are up for pre-order at $299. A small number of them will also be autographed. Outside of the crypto-themed footwear, the Trump team is selling a wide range of other Trump-themed items, perfume, a “Freedom” cooler — which is listed for $299 — and other shoes emblazoned with various Trump-affiliated catchphrases and American flag decals. A wide range of Trump-themed goods are offered for sale. Source: Trump Sneakers The move to craft a roster of crypto-themed merchandise follows Trump’s sudden change of heart on cryptocurrency earlier this year. Since then, he has made pro-crypto policy a cornerstone of his re-election campaign. Days after Trump’s speech in Nashville The shoes have come on sale just days after the Bitcoin 2024 conference in Nashville on July 25, where Trump promised to create a “strategic national Bitcoin stockpile,” meaning that if he were reelected as President, the US Government would never sell any of the $12 billion in confiscated Bitcoin it holds in reserve. Trump has changed his tune on Bitcoin over the last few years. In 2021, the former President described Bitcoin as “like a scam” and said he had no interest in cryptocurrencies, which he claimed were technically worthless compared to an asset like the US Dollar. TRUMP: Bitcoin, it just seems like a scam. I don’t like it. I want the dollar to be the currency of the world. pic.twitter.com/CXjALsJmXx — August Takala (@RudyTakala) June 7, 2021 However, at the beginning of this year, Trump pivoted quickly to being an advocate for  Bitcoin and other digital assets. Related: Trump wants Bitcoin ‘made in the USA’ after hosting mining industry heads On May 26, Trump first took aim at President Joe Biden over his administration’s harsh crypto policy, declaring that the U.S. must not settle for anything but the top place in the crypto industry. On June 16, Trump vowed to end Biden’s “war on crypto” if here to clinch an election victory on Nov. 4. Magazine: THORChain founder and his plan to ‘vampire attack’ all of DeFi Source link The post Trump’s Bitcoin sneakers are already on eBay for $2,500 first appeared on Forex Trader Hub.

By Chibuike Oguh NEW YORK (Reuters) – The and Nasdaq scored their biggest daily percentage gains since Feb. 22 and the Dow rose on Wednesday as chip stocks rallied and the Federal Reserve kept U.S. interest rates unchanged while signaling possible easing in September if inflation cools. Seven out of the 11 S&P 500 sectors advanced, led by technology and consumer discretionary stocks. Healthcare, real estate and consumer staples were the weakest. The Fed kept its benchmark overnight interest rate in the 5.25%-5.50% range as it ended its two-day policymaking meeting on Wednesday, but opened the door to easing in September, seven weeks shy of the November U.S. elections. The benchmark U.S. 10-year note yield fell 9.8 basis points to 4.043%. The rose 0.24% to 40,842.79, the S&P 500 gained 1.58% to 5,522.30 and the advanced 2.64% to 17,599.40. “It was the worst kept secret on the planet that the Fed was not going to cut in July,” said Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma. “The Fed is going to have its day in the sun in September with a 25 or 50 basis point cut, but I would not be surprised if that is already priced into stocks.” During his press conference, Fed Chair Jerome Powell said policymakers discussed the case for cutting rates, but a “strong majority” agreed that now was not the appropriate time. “The statement didn’t move the needle at all,” said Mark Malek, chief investment officer at Siebert Next in New York, referring to the Fed’s official statement. “But listening to him speak, it’s clear they’re all locked and loaded for September rate cut and they’re going to maintain their optionality.” Data released early Wednesday showed July U.S. private payrolls increased far less than expected, indicating an easing in persistent labor market tightness. For the month, the S&P 500 climbed 1.1%, the Dow jumped 4.4%, while the Nasdaq lost 0.8%. Nvidia (NASDAQ:) jumped nearly 13%, helped by a rosy 2024 sales forecast for artificial intelligence chips by peer Advanced Micro Devices (NASDAQ:), whose shares also gained 4.3%. The rose finished up nearly 7%. U.S. President Joe Biden’s administration plans to unveil a new rule next month that will expand U.S. powers to stop exports of semiconductor manufacturing equipment from some foreign countries to Chinese chipmakers, two sources familiar with the matter told Reuters. Microsoft (NASDAQ:) dipped 1% after it posted massive AI-related expenses. Meta (NASDAQ:) jumped 5% after the bell as its earnings beat market expectations. Apple (NASDAQ:) and Amazon.com (NASDAQ:), which will report earnings on Thursday, closed up 1.5% and 2.9%, respectively. Advancing issues outnumbered decliners by a 2.23-to-1 ratio on the NYSE. On the Nasdaq, 2,603 stocks rose and 1,648 fell as advancing issues outnumbered decliners by 1.58-to-1. The S&P 500 posted 68 new 52-week highs and one new low while the Nasdaq Composite recorded 168 new highs and 104 new lows. Total volume on U.S. exchanges was 13.3 billion, compared with the 20-day moving average of 13.27 billion. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post S&P 500, Nasdaq boosted by chip rally, Fed rate cut signals By Reuters first appeared on Forex Trader Hub.

WASHINGTON (Reuters) – The National Highway Traffic Safety Administration said Wednesday it was standing by its initial decision that 51 million air bag inflators in 49 million U.S. vehicles built by 13 automakers pose serious safety risks. NHTSA argued at a hearing in October that inflators produced by the two air bag manufacturers, ARC Automotive and Delphi Automotive, should be recalled because they may rupture and send metal fragments flying. After automakers raised objections in December, the agency did not immediately finalize its decision. The agency said Wednesday it was supplementing its initial determination and giving automakers another 30 days to respond before it could finalize the determination and formally demand recalls. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post US says 51 million air bag inflators pose safety risks despite automaker objections By Reuters first appeared on Forex Trader Hub.

By Abhinav Parmar (Reuters) -Farm and construction equipment maker CNH Industrial (NYSE:) on Wednesday lowered its 2024 profit forecast for the second time, as slowing demand for its tractors and combines keeps hopes for a recovery in the second half of the year muted. A sharp drop in crop prices coupled with rising production costs have lowered farm incomes around the world, forcing farmers to rethink upon purchasing heavy equipment, thus setting a gloomy demand environment for agriculture equipment makers. CNH now expects its full-year adjusted profit to be in a range of $1.30 to $1.40 per share, compared with $1.45 to $1.55 per share previously. The Basildon, UK-based company now expects its agriculture segment net sales to be down between 15% and 20% year-over-year, compared with a fall of 11% to 15% expected previously. “Our view is that the current down-cycle is likely to extend into 2025 given the current commodities backdrop and the impact on farmer economics globally,” Oppenheimer analyst Kristen Owen said. U.S. farmer income, a broad measure for farm profitability, is expected to fall about 25% to $116 billion, from $156 billion in 2023. Still, robust pricing and job cut initiatives undertaken by the company have helped it top revenue estimates in the quarter even as demand remains subdued in an industry-wide downturn. The company reported a 16% fall in second-quarter revenue to $5.49 billion, but beat analysts’ estimates of $5.32 billion, according to LSEG data. Shares of the company were up 2.1% in morning trade. On an adjusted basis, the company earned 38 cents per share, slightly above analysts’ estimates of 37 cents. “We will continue to manage the business prudently through 2024 while positioning ourselves for 2025,” CEO Gerrit Marx, who took over CNH’s helm on July 1, said in a statement. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post CNH Industrial lowers profit forecast on slow demand for farming products By Reuters first appeared on Forex Trader Hub.

Industrial materials maker DuPont de Nemours (NYSE:) raised full-year forecasts on Wednesday, benefiting from strong demand for electronics and artificial intelligence-based technology that helped it beat second-quarter results. After widely destocking last year due to low demand, an uptick in the manufacturing sector is benefiting companies that make chemicals and other materials used in a variety of industries including automotive and electronics. Production at factories in the United States rose 1.1% in June from a year earlier, and climbed 3.4% in the second quarter. DuPont’s electronics and industrial unit, its biggest in terms of sales, saw a 7.1% rise in net sales in the quarter, driven by strong demand for semiconductors and consumer technology products. Earlier this week, Samsung (KS:) and AMD (NASDAQ:) reported a jump in their earnings on the AI-boom that has boosted prices for semiconductors and memory chips. Demand in the electronics market is expected to remain strong for the rest of the year, DuPont said, sending its shares up 4.5% in premarket trading. CEO Lori Koch, who took the role in May, said the company had made progress around separating its electronics and water businesses. DuPont announced plans to split its electronics and water segments in May, and said it expected to complete the process within 18-24 months. The company on Wednesday raised its 2024 adjusted earnings forecast to $3.70 to $3.80 per share, from its previous range of$3.45 to $3.75, and net sales estimate to $12.40 billion and $12.50 billion, from $12.10 billion to $12.40 billion previously. The Wilmington, Delaware-based company reported an adjusted profit of 97 cents per share for the second quarter, above analysts’ average estimate of 85 cents, according to LSEG data. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post DuPont raises full-year forecasts on strong electronics, AI-tech demand By Reuters first appeared on Forex Trader Hub.

Scalping remains one of the most popular trading strategies, but what are the best Forex indicators for scalping? Find out by reading on. Scalping is a strategy where traders remain in a trade for seconds to capture one to five pips in profits. It is similar to high-frequency trading, which is slowly displacing scalping. The best Forex brokers for scalping will provide traders with the indicators and signals they need to benefit from small price movements by placing a high volume of short-term trades. Traders using Forex indicators for scalping face significant risk and can incur many losing trades. To scalp successfully, they require algorithmic Forex trading software, as well as a broker with ultra-low trading fees and fast order execution. Scalpers use indicators as they provide the most up-to-date price action data. The best Forex indicators for scalping have proven their reliability over time, but the best indicators for Forex scalping always depend on individual preferences. Another reason scalpers use indicators is that they are mathematical-based and free of personal opinions. The best Forex indicators for scalping depend on scalpers and their strategy, but some have stood the test of time and outperformed most competing indicators. The best trading indicators for scalping include the following: Bollinger Bands – A favorite technical indicator to gauge market volatility, entry points, and exit levels RSI – A time-tested momentum oscillator showing the speed and magnitude of price movements with overbought and oversold levels, which scalpers use for entry and exit levels based on breakouts and breakdowns Simple Moving Average (SMA) – A lagging indicator popular among scalpers who use two SMAs to generate buy and signals via crossovers Exponential Moving Average (EMA) – The EMA is a moving average that puts more weight on recent price action as compared to the SMA, which treats all data points equally Parabolic SAR – A popular technical indicator scalpers use to identify potential stop-loss levels and reversals, applied to charts via dots, with dots below the price suggesting an uptrend and dots below the price a downtrend Moving Average Convergence Divergence (MACD) – Another time-tested and favorite technical indicator creating signals based on EMA crossovers and histogram movements Stochastic Oscillator – A momentum indicator oscillating between 0 and 100, comparing the closing price to a price range over a specific time frame, creating overbought and oversold signals Volume-Weighted Average Price (VWAP) – A novel technical indicator that considers the average price within a defined period plus its trading volume volume Fibonacci Retracement – One of the most used technical indicators to determine support and resistance levels Profitable traders combine the best Forex indicators for scalping with strategies featuring a high probability of generating profits. After traders decide which indicators for Forex scalping to use, they must pick a suitable trading strategy. Here are three popular scalping strategies: Scalpers use three simple moving averages (SMA), the 5-period, 8-period, and 13-period SMA on the 2-minute chart. Alternatively, they can use the 1-minute or 5-minute charts, depending on their preferences. Scalpers buy if the 5-8 SMAs move higher with price action glued to either of the SMAs. A crossover with the 13-SMA signals a potential trend reversal, and scalpers sell with price action following the 5-8 SMAs lower. This strategy uses the Stochastics technical indicator with a 5-3-3 setting with a 3-standard deviation (SD) Bollinger Band. Scalpers buy when Stochastics moves out from extreme oversold territory above 25 and sell when this technical indicator breaks down from extreme overbought conditions below 75. Scalpers can adjust the Bollinger Band standard deviation to 2 SD or 4 SD and apply all three Bollinger Bands to the chart for greater precision with entry and exit levels. Since this scalping strategy requires multiple charts, scalpers should have a multi-screen trading set-up or use various charts on one large screen. Scalpers should start with the M15 chart free of indicators. Scalpers will focus on price action during the first 45 to 90 minutes, ideally during the unofficial start of the London trading session, which is the start of equity trading. Scalpers will place three lines on the chart: the opening price at the start of the period, the high, and the low. They will then look for buy and sell signals on the M1 to M5 charts close to the high and low of the M15 chart. Scalping is an ultra-short-term trading strategy that requires automated trading solutions that execute trading signals provided by the best Forex indicators for scalping. Manual scalping is inefficient and places traders at a distinct competitive disadvantage. Source link The post Best Forex Indicators for a Scalping Strategy first appeared on Forex Trader Hub.

(Reuters) – European shares climbed nearly 1% on Wednesday, driven by a raft of corporate updates, while heavyweight ASML (AS:) led overall gains on report that the Dutch chip equipment manufacturer was exempt from a fresh U.S. rule on foreign chip equipment exports. The pan-European index was up 0.9%, as of 0715 GMT, and scaled a two-week high. Shares of ASML surged 8% after Reuters reported that a new U.S. rule on foreign chip equipment exports to China will exempt some allies. The regional tech sector jumped 3.3%. Airbus gained 5.2% after the world’s largest planemaker unveiled its second-quarter results. Jet engine and equipment maker Safran (EPA:) climbed 1.1% after it reaffirmed its financial targets following a higher first-half profit. Both stocks boosted the aerospace sector, which traded 1.7% higher. Among other notable stocks, HSBC Holdings (NYSE:) advanced nearly 3% as the bank pledged to buy back $3 billion in shares after it reported a stable first-half profit. Schneider Electric (EPA:) SE gained 3.4% after the French electric equipment and automation systems maker reported its first-half results. Wolters Kluwer dropped 6% after the Dutch information services company reported its first-half results. British drugmaker GSK dropped 1% after it raised its annual earnings and sales forecasts. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post European shares open 1% higher on ASML, earnings boost By Reuters first appeared on Forex Trader Hub.

By Joyce Lee and Heekyong Yang SEOUL (Reuters) -Samsung Electronics forecasted strong artificial intelligence-driven demand for chips in the second half of this year, as it reported a more than 15-fold rise in its second-quarter operating profit. Rebounding semiconductor prices stoked by the AI boom lifted June quarter earnings for the world’s biggest maker of memory chips, smartphones and TVs from a low base a year ago. “In the second half of 2024, AI servers are expected to take up a larger portion of the (memory) market as major cloud service providers and enterprises expand their AI investments,” Samsung (KS:) said. Samsung’s share price rose 0.7% in morning trade versus a 0.3% rise in the benchmark index. Operating profit rose to 10.4 trillion won ($7.52 billion) in April-June, up from 670 billion won a year earlier, Samsung said. It was Samsung’s highest operating profit since the third quarter of 2022, spurred by the chip division returning to form as the tech giant’s cash cow after a slump caused by weak post-pandemic demand for gadgets that use the chips. Second-quarter revenue rose 23% to 74 trillion won. CHIPS BOOM The chip division reported a 6.45 trillion won profit, its highest since the second quarter of 2022, and its second consecutive quarterly profit. Explosive demand for high-end DRAM chips such as high bandwidth memory (HBM) chips used in AI chipsets, as well as chips used in data centre servers and gadgets that run AI services have helped to lift chip prices. Samsung said its second-quarter HBM revenue rose about 50% from the previous quarter. South Korean rival and HBM leader SK Hynix also said last week demand for AI chips will continue to get stronger, as it posted its highest quarterly profit since 2018. Samsung has yet to meet AI chip leader Nvidia (NASDAQ:)’s standards for fifth-generation HBM chips called HBM3E, though Samsung’s fourth-generation HBM – dubbed HBM3 – has been cleared by Nvidia for use in its less-sophisticated graphics processor, called the H20, developed for the Chinese market, sources have told Reuters. However, Samsung forecasted HBM3E chips would take up 60% of its HBM sales by the fourth-quarter. Analysts said the aggressive target could be achieved if Samsung’s HBM3E passes Nvidia’s final approval by the third quarter. With production capacity being concentrated on HBM, server DRAMs and server solid-state drives (SSDs) for AI applications, conventional supply of PC and mobile memory chips will be constrained in the second half of the year, Samsung said. The mobile devices business suffered a drop in second-quarter operating profit of about 810 billion won from a year earlier due to steeper parts costs, although shipments were steady at 54 million smartphones. Samsung expects overall demand for smartphones in the second half of 2024 to increase from a year earlier, led by growing demand for premium products with AI functions as well as accessories such as smartwatches. The company launched its latest AI-enabled flagship foldable phones and mobile accessories earlier this month to compete with rival Apple (NASDAQ:) in the premium smartphone segment, including a new ring for health monitoring. ($1 = 1,383.0100 won) !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Samsung bullish on AI demand as profit soars on higher chip prices By Reuters first appeared on Forex Trader Hub.

The Australian Dollar declines after the release of CPI data. Australia’s Monthly CPI rose by 3.8% YoY, easing from the 4.0% posted in May. The US Dollar extends losses ahead of the Fed interest rate decision scheduled for Wednesday. The Australian Dollar (AUD) falls against the US Dollar (USD) after the release of mixed Consumer Price Index (CPI) data released on Wednesday, offering potential insights into the future direction of the Reserve Bank of Australia’s (RBA) monetary policy. This inflation report has raised expectations that the Reserve Bank of Australia (RBA) may choose to keep interest rates unchanged at its policy meeting next week. However, economists have cautioned that further interest rate hikes could jeopardize Australia’s economic recovery. Additionally, the NBS Manufacturing PMI posted a reading of 49.4 for July, slightly above the expected 49.3 but below the prior 49.5. Meanwhile, the Non-Manufacturing PMI came in at 50.2 as expected. Since changes in the Chinese economy can significantly impact the Australian market, these PMI readings are particularly relevant. The downside of the AUD/USD pair might be limited as the US Dollar (USD) faces challenges ahead of the Federal Reserve’s (Fed) upcoming interest rate decision scheduled for Wednesday. The central bank is expected to keep rates unchanged in July, but there is growing anticipation of a rate cut in September. This speculation is putting pressure on the USD. Additionally, signs of cooling inflation and easing labor market conditions in the United States are further fueling expectations of multiple rate cuts by the Fed this year, potentially totaling three cuts. Daily Digest Market Movers: Australian Dollar declines due to risk aversion The Australian Bureau of Statistics (ABS) reported that the Monthly CPI rose by 3.8% in the year to June, easing from the 4% posted in May. The quarterly CPI rose 1% QoQ and up 3.8% YoY in the second quarter of the year. The RBA Trimmed Mean CPI, the central bank’s preferred gauge, rose by 3.9% YoY in Q2, against the expected and previous reading of 4.0%. Australia’s Building Permits (MoM) fell by 6.5% in June, exceeding market expectations of a 3.0% decline. This follows a 5.7% increase in May. On a year-over-year basis, Building Permits declined by 3.7%, compared to the previous year’s decline of 8.5%. National Australia Bank (NAB) anticipates that the Reserve Bank of Australia’s (RBA) cash rate will remain stable at 4.35% until May 2025, according to a recent NAB Economics outlook. Looking ahead, the NAB Economics team predicts a decline to 3.6% by December 2025, with further decreases expected in 2026. In a media release on Monday, the Australian Prudential Regulation Authority (APRA) warned that arrears rates are increasing slowly. Following their latest quarterly assessment of domestic and international economic conditions, APRA announced that they will keep macroprudential policy settings on hold. These comments reflect their ongoing evaluation of both domestic and global economic environments. Bank of America suggests that robust economic growth in the United States enables the Federal Open Market Committee (FOMC) to “afford to wait” before implementing any adjustments. The BofA notes that the economy “remains strong” and expects the Fed to begin rate cuts in December. Technical Analysis: Australian Dollar falls to near 0.6500 The Australian Dollar trades around 0.6500 on Wednesday. The daily chart analysis shows that the AUD/USD pair is breaking below a descending channel. The 14-day Relative Strength Index (RSI) is hovering near the oversold 30 level, indicating a potential upward correction soon. Immediate support for the AUD/USD pair is around the throwback support around the 0.6470 level. On the upside, key resistance is around the “throwback support turned resistance” at 0.6575, aligned with the nine-day Exponential Moving Average (EMA) at 0.6581. A break above this level could lead the AUD/USD pair to test the psychological level of 0.6600, with a potential aim for a six-month high of 0.6798. AUD/USD: Daily Chart Australian Dollar PRICE Today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Japanese Yen.   USD EUR GBP JPY CAD AUD NZD CHF USD   -0.07% -0.06% -0.23% -0.03% 0.59% -0.13% -0.10% EUR 0.07%   0.04% -0.13% 0.04% 0.66% -0.04% -0.02% GBP 0.06% -0.04%   -0.20% 0.00% 0.61% -0.08% -0.05% JPY 0.23% 0.13% 0.20%   0.25% 0.81% 0.09% 0.16% CAD 0.03% -0.04% -0.00% -0.25%   0.60% -0.11% -0.08% AUD -0.59% -0.66% -0.61% -0.81% -0.60%   -0.70% -0.68% NZD 0.13% 0.04% 0.08% -0.09% 0.11% 0.70%   0.03% CHF 0.10% 0.02% 0.05% -0.16% 0.08% 0.68% -0.03%   The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote). Inflation FAQs Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%. The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls. Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money. Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative. Source link The post Australian Dollar drops following the mixed inflation data first appeared on Forex Trader Hub.

The ZKX Protocol — a social derivatives trading platform built on the Ethereum Layer-2 network Starknet — has shuttered, with its founder saying there is no “economically viable path” forward for the protocol. In a July 31 post to X, ZKX founder Eduard Jubany Tur wrote that the protocol’s user engagement had been “minimal,” noting that only a few individuals had been mining the protocol’s rewards program. He added that trading volumes had “significantly decreased” and the protocol’s daily revenue could only cover a “fraction” of their cloud server expenses. Source: Eduard Jubany Tur Tur said ZKX had delisted all markets, closed all positions, and returned all funds to each of its user’s trading accounts. Users will have until the end of August to transfer their funds from their trading wallets to the protocol’s main self-custodial account. It comes just a month after ZKX protocol raised $7.6 million in funding from a strategic round on June 19, which saw contributions from investors including Flowdesk, GCR, and DeWhales. Previous investors in the protocol included Hashkey, Amber Group, Crypto.com, and StarkWare. Source: ZKX Protocol Tur added there was no way to “sustainably support” the protocol with the current value of its recently launched ZKE token. Related: Starknet launches $25M token incentive for top projects “There’s no denying the TGE didn’t meet expectations, and the resulting losses have contributed to our current situation. As major token holders exercise their right to cash out, the token’s value has continued to decline,” he said. Tur also blamed “broader exhaustion” in the decentralized finance (DeFi) sector. The price of the protocol’s native ZKX token fell 37.8% in the last 24 hours and is currently changing hands for $0.02, per CoinGecko data. The ZKX token is down 96.4% from its all-time high of $0.62 which it notched a day after its launch on June 20. The ZKX token is down 96% from its post-launch valuation. Source: CoinGecko Magazine: THORChain founder and his plan to ‘vampire attack’ all of DeFi Source link The post Starknet-based ZKX protocol shutters, blaming lack of users first appeared on Forex Trader Hub.

M/I Homes Inc. (NYSE: NYSE:), a leading national homebuilder, reported robust financial results for the second quarter, with record revenues and a strong increase in home closings. The company’s earnings call highlighted a 12% year-over-year increase in home closings, with 2,224 homes closed, and a notable rise in revenue, reaching $1.1 billion. M/I Homes also reported substantial gross and pre-tax margins of 28% and 17.5%, respectively. Despite a slowdown in demand and traffic during the quarter, the company saw an uptick in orders in June and remains optimistic about its performance in 2024. Key Takeaways M/I Homes closed 2,224 homes in the quarter, marking a 12% increase from the previous year. Record-setting revenue of $1.1 billion was achieved, with gross margins at 28% and pre-tax margins at 17.5%. The Smart Series homes accounted for over half of the sales, with 53% in the second quarter. The company’s balance sheet is strong, with $2.7 billion of equity, $800 million in cash, and no borrowings. M/I Homes owns approximately 23,000 lots, indicating a three-year supply. Company Outlook M/I Homes is optimistic about 2024, expecting a strong year ahead. The company plans to increase its community count and is focused on market share gains with low debt levels. M/I Homes plans to open approximately 80 new stores this year, with a current average community count run-rate at 5%. Bearish Highlights Demand and traffic have slowed, with an uncertain demand and incentive environment for the latter half of the year. Inventory levels have increased, particularly in Florida and Texas, though the impact on sales incentives has been minimal. Bullish Highlights There was an uptick in orders in June, possibly due to buyers returning as interest rates decreased. The company’s mortgage and title operations saw a 29% increase in pre-tax income from the previous year. M/I Homes achieved a reduction in build time by 10 days and is currently at or below pre-COVID levels in most markets. Misses The average community count run-rate is lower than expected at 5% compared to the anticipated 10%. SG&A expenses were higher than expected, although they are projected to stabilize around 11%. Q&A Highlights The company discussed its land strategy, focusing on A-locations despite higher costs. Management mentioned that sustainable pre-tax margins of 17.5% are a target, which is higher than most other builders. The company is not planning significant price increases in most communities, and construction costs have remained stable. M/I Homes Inc. remains confident in its strategic direction and financial health, as evidenced by the company’s strong balance sheet and the management’s positive outlook for the future. The company’s focus on affordability through its Smart Series and the strategic opening of new stores demonstrate its commitment to growth and market adaptation. Despite some uncertainties in the demand and incentive environment, M/I Homes’ performance in the second quarter has set a solid foundation for the company’s aspirations in the coming year. InvestingPro Insights M/I Homes Inc. (NYSE: MHO) has demonstrated a commendable financial performance in the recent quarter, but what does the real-time data suggest about the company’s stock? InvestingPro data shows a market capitalization of $4.66 billion, underscoring the company’s substantial presence in the homebuilding market. The P/E ratio, a measure of the company’s current share price relative to its per-share earnings, stands at an attractive 9.3 for the last twelve months as of Q1 2024. This may signal that the stock is reasonably valued compared to earnings. Investors should note that the company’s stock price has experienced significant movements, with an impressive one-month total return of 37.22% and a three-month total return of 44.21%. This volatility could be an indicator of high investor interest and market reactivity to company performance and industry trends. Additionally, the stock is trading near its 52-week high, at 98.29% of the peak, reflecting strong investor confidence and potential for continued momentum. Two InvestingPro Tips to consider are the stock’s RSI, which suggests it is in overbought territory, and the company’s operation with a moderate level of debt. These insights indicate that while the stock is currently seeing high demand, investors should be mindful of potential pullbacks. Moreover, the company’s moderate debt levels may provide some assurance of financial stability in the face of market fluctuations. For those interested in a deeper dive into M/I Homes Inc.’s stock and additional insights, there are more InvestingPro Tips available at https://www.investing.com/pro/MHO. Using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of financial information and analysis to guide investment decisions. With 13 additional InvestingPro Tips listed, investors can gain a comprehensive understanding of the stock’s potential and risks. Full transcript – M/i Homes Inc (MHO) Q2 2024: Operator: Good morning, ladies and gentlemen, and welcome to the M/I Homes Inc. Second Quarter Earnings Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Wednesday, July 30, 2024. I would now like to turn the conference over to Phil Creek. Please go ahead. Phil Creek: Thank you. Joining me on the call today is Bob Schottenstein, our CEO and President, and Derek Klutch, President of our mortgage company. First, to address regulation fair disclosure, we encourage you to ask any questions regarding issues that you consider material during this call, because we are prohibited from discussing significant non-public items with you directly. And as to forward-looking statements, I want to remind everyone that the cautionary language about forward-looking statements contained in today’s press release also applies to any comments made during this call. Also, be advised that the company undertakes no obligation to update any forward-looking statements made during this call. With that, I’ll turn the call over to Bob. Bob Schottenstein: Thanks, Phil. Good morning, and thank you for joining us today. We had a very strong second quarter, highlighted by record setting revenue, income, gross margins, and pre-tax margins. We are very pleased with our second quarter results, clearly one of the best quarters in company history. We are particularly pleased with our performance given the general economic uncertainty that dominated the second quarter, a quarter that featured rising rates and a fair amount of rate volatility, a slight decline in both traffic and demand when compared to the first quarter, and an overall general sense that buyers were becoming slightly more cautious about purchasing a new home. Even though we have seen a rise in inventory in select markets, most notably Florida and Texas, we strongly believe that the underlying fundamentals of our industry remain strong. There exists a housing shortage in every one of our 17 markets, and we continue to see an ever-increasing number of millennials and Gen Z buyers seeking home ownership. All of this suggests a very bright future for our industry. In terms of our performance, we closed 2,224 homes in the second quarter, 12% better than last year, with second quarter revenues reaching a record $1.1 billion. Gross margins were extremely strong, coming in at 28% compared to 26% last year. Moreover, our pre-tax margins were 17.5% compared to 15.3% last year. This resulted in record pre-tax income of $194.1 million, 25% better than a year ago, and a very solid return on equity of 21%. We sold 2,255 homes during the quarter, a 3% improvement over 2023. As mentioned earlier, demand and traffic somewhat slowed from the strong first quarter as the second quarter began in April. The quality of our buyers continues to be very good, with average credit scores of 750 and an average down payment of 19%, or just over $90,000. And our Smart Series, which is our most affordable line of homes, continues to be a very successful and important contributor to our business, with Smart Series sales comprising 53% of second quarter sales. Now I will provide some additional comments on our markets. Our division income contributions in the second quarter were led by Dallas, Columbus, Tampa, Chicago, Orlando, and Cincinnati. New contracts for the second quarter in our northern region increased by 6 percent, while new contracts in our southern region were flat compared to last year. Closings in the southern region increased by 5% from last year, and deliveries or closings in the northern region increased by 21% from last year. 57% of our closings came out of the southern region, with a balance of 43% coming out of the northern region. Our owned and controlled lot position in the southern region increased by 22% compared to a year ago, and increased 16% from last year in the northern region. 34% of our owned and controlled lots are in the northern region, with 66% being in the southern region. We have an exceptionally strong land position. Company-wide, we own approximately 23,000 lots, which is roughly a three-year supply, in line with our strategy. In regards to our balance sheet, we ended the second quarter of 2024 with an all-time record $2.7 billion of equity, equating to a book value per share of $100. We also ended the quarter with over $800 million of cash and zero borrowings under our $650 million unsecured revolving credit facility. This resulted in a debt-to-capital ratio of 20% and a net debt-to-capital ratio of minus 6%. As I conclude, let me just state that we are in the best financial condition in our history. Our balance sheet has never been stronger, and we have a lot of operating momentum. We feel very good about our business and the home building industry, and want to state that M/I Homes is well positioned to have a very strong 2024. With that, I’ll turn it over to Phil. Phil Creek: Thanks, Bob. Our new contracts were up 1% in April, flat in May, and up 8% percent in June, and our cancellation rate for the second quarter was 10%. 53% of our second quarter sales were to first-time buyers, and 60% were inventory homes. Our community count was 211 at the end of the second quarter, compared to 195 a year ago. And the breakdown by region is 92 in the northern region, 119 in the southern region. During the quarter, we opened 17 new communities while closing 25. We currently estimate that our average 2024 community count will be about 5% higher than last year. We delivered 2,224 homes in the second quarter, which was 66% of our backlog. And 30% of our second quarter closings came from inventory homes that were sold and closed in the quarter. As of June 30, we had 5,100 homes in the field versus 4,700 homes in the field a year ago and 4,500 homes in the field at 3/31/’24. Our revenue increased 9% in the second quarter, and our average closing price in the quarter was $482,000, a 2% decrease when compared to last year’s second quarter. Our second quarter gross margin was a record 27.9%, up 240 basis points year-over-year, and up 80 basis points from our first quarter. Our construction costs were flat in the second quarter compared to the first quarter, and our cycle time decreased by 10 days in the second quarter versus the first quarter. Our second quarter SG&A expenses were 11% of revenue compared to 10.6% a year ago. Our increased costs were due to our increased community count, higher selling expenses, and additional headcount. Interest income, net of interest expense for the quarter was $7.3 million, and our interest incurred was $8.8 million. We are very pleased with our returns for the second quarter. Our pre-tax income was 17%, and our return on equity was 21%. During the quarter, we generated $200 million of EBITDA compared to $164 million in last year’s second quarter. And our effective tax rate was 24% in the second quarter, the same as last year. Our earnings per diluted share for the quarter increased to an all-time record $5.12 per share from $4.12 per share last year, up 24%, and our book value per share is now $1,100, a $17 per share increase from a year ago. Now Derek Klutch will address our mortgage company results. Derek Klutch: Thanks, Phil. Our mortgage and title operations achieved pre-tax income of $14.4 million, an increase of 29% from $11.2 million in 2023’s second quarter. Revenue increased 22% from last year to an all-time quarterly record of $30.8 million due to higher margins on loans sold, an increase in loans originated, and proceeds from the sale of servicing rights. This was offset partially by a lower average loan amount. The average loan to value on our first mortgages for the second quarter was 81% compared to 84% last year. We continue to see an increase in the use of government financing, as 69% of loans closed in the quarter were conventional and 31% FHA or VA, compared to 71% and 29% respectively for 2023’s second quarter. Our average mortgage amount decreased to $395,000 in 2024’s second quarter, compared to $402,000 last year. Loans originated increased to $1,618, which was up 26% from last year, while the volume of loans sold increased by 20%. Our borrower profile remains solid with an average down payment of 19% and an average credit score of 750 compared to 743 in 2023’s second quarter. Finally, our mortgage operation captured 87% of our business in the quarter, a significant improvement from 81% last year. Now I’ll turn the call back over to Phil. Phil Creek: Thanks, Derek. For the balance sheet, we ended the second quarter with a cash balance of $837 million and no borrowings under our unsecured revolving credit facility. We have one of the lowest debt levels of the public home builders and are well positioned with our maturities. Our bank line matures in late 2026 and our public debt matures in 2028 and 2030 and have interest rates below 5%. Our unsold land investment at June 30, ‘24 is $1.5 billion compared to $1.3 billion a year ago. At June 30, we had $810 million of raw land and land under development and $643 million of finished unsold lots. During the second quarter, we spent $119 million on land purchases and $145 million on land development for a total of $264 million. At June 30, we owned 23,000 lots and controlled 49,000 lots. At the end of the quarter, we had 372 completed inventory homes and 2,150 total inventory homes. And of the total inventory, 872 are in the northern region and 1,278 are in the southern region. At June 30, 23, we had 303 completed inventory homes and 1,737 total inventory homes. We spent $50 million in the second quarter repurchasing our stock up from our first quarter’s $25 million and have $200 million remaining under our current board authorization. Since 2022, we have repurchased 12% of our outstanding shares. This completes our presentation and we’ll now open the call for any questions or comments. Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session [Operator Instructions] First question comes from Alan Ratner at Zelman & Associates. Please go ahead. Bob Schottenstein: I can’t hear him. Operator: Mr. Ratner, your line is open. Please proceed with your question. Alan Ratner: Can you hear me now? Bob Schottenstein: Yeah. Hi, Alan. Alan Ratner: Hey. Hey, Bob. Sorry about that. Some technical difficulties. Thanks for taking my question and great job in the quarter. Congrats on the strong performance. Bob Schottenstein: Thanks a lot. Alan Ratner: Yeah. Bob, I’d love to drill in a little bit on the trends through the quarter and maybe into July. You mentioned demand and traffic slowed a bit, which is consistent, I think, with what others have been saying. Your orders by month though, you did see an uptick at least on a year-over-year basis in June. So I’m curious whether that’s a function of kind of the buyers maybe coming back a little bit more as rates pulled back or did you do anything on incentives or pricing to maybe drive those better order results? And where do you see kind of the broader demand and incentive environment heading into the back half of the year? Bob Schottenstein: Great questions. We won’t make any comments on July, which is typically what we do with all these calls. We don’t comment on the current month. And even though it’s almost over, there’s usually a fair amount of activity in the last several days anyway. So I wouldn’t want to suggest something one way or the other regardless. But I think that we did incent a little bit more in June, not significant, but we did do a little bit more with below market financing commitments, which is below market financing that generally, only applies to homes that can be delivered within 60 days or so. So it’s a product that — as is the case with our competition, applies to spec homes. It’s really hard to know exactly how things are going to shake out in the back half of the year. I think most people believe that we’re looking at one or two rate cuts. One’s probably priced in, not so sure about the second one. But it looks like, if I had to guess, I think we’re going to continue to have to provide at the same levels we are now the kind of financing incentives to get the sales that we need. We’re very happy with the fact that the first six months of this year, our sales were up 10%. Clearly, they slowed a little bit in the second quarter. Some of that is obviously seasonal. But I think some of it also was a bit of caution by buyers. There was a lot of intra-quarter noise from all different places and parts of the economy. We’ve got an election coming up, and who knows how that’s going to affect everything, as we all know. But overall, I’m really optimistic about business. I think that the builders are very well-positioned, most anyway. We’ve never been in better shape from a liquidity standpoint. Our debt levels are very low. We’re gaining market share in almost all of our markets. There’s always something that’s not quite hitting on all cylinders. But we’re hitting on all cylinders in a whole lot of our places. I love our footprint. Our product diversity is strong. Our land position is strong, we’re poised to increase community count, really optimistic about next year and what the future lies. But we’ve got ways to get there yet, but this is going to be a really strong year for MI. And we’re poised for it to be the best year we’ve ever had, and that’s what we’re focused on. Alan Ratner: Great. I appreciate your thoughts. And we agree, definitely, the future is bright. So, on that note, you mentioned your liquidity. You did pick up the pace of buybacks this quarter, which is great to see. And I know last quarter you kind of mentioned that you were having some conversations with the board about potentially picking up that pace. And you did so this quarter, $50 million, and yet your balance sheet is still in fantastic shape, negative net debt. So is this $50 million, should we think about this as kind of a programmatic run rate going forward? Was it more kind of one-off in nature? Where’s your head at currently on the buyback? Bob Schottenstein: Phil will answer that one. Phil Creek: Our current view is that, as Bob said, there’s always challenges in business. We do plan on opening a few more stores the second half than we did the first half, which is good news. We also plan on spending more on land the second half than we did the first half. But again, with our backlog and feel good about our spec levels, I would see us continuing in the stock repurchase area, kind of where we are now in the near term. Again, that’s dependent, longer term on the business and the economy, but we did go from 25 to 50, and I would kind of see us kind of staying there, we want to have somewhat of consistent policy and program. So yeah, I kind of see us staying there in the short term, Alan. Alan Ratner: Appreciate that, guys. Thanks a lot. Phil Creek: Thank you, Alan. Operator: Thank you. Next question comes from Buck Horne at Raymond James. Please go ahead. Buck Horne: Hey, good morning. Congratulations on a great quarter. So yeah, thanks. Bob Schottenstein: Thanks, Buck. And Buck, it’s good to have you on the call. Buck Horne: It’s great to be here. So thank you. Thank you very much. And I wanted to just maybe talk about your land strategy going forward here. As it looks like you’ve added quite a few lots under option contracts quarter-over-quarter, obviously still spending on some new acquisitions in the back half of the year. I guess I’m curious, just longer term, how you think about increasing your option lot percentage, maybe as kind of the overall total or how much land you want to keep under control? And maybe more broadly, what kind of pricing trends you’re seeing in your markets for land and working with those developers and other land banks out there? Bob Schottenstein: Yeah, great question. Our strategy with respect to land acquisition, owned versus optioned, honestly has not changed in a long, long time, at least 20 years, maybe longer. Our goal is to own and control a three to five year supply of lots. Embedded in that, we do not want to own at any point in time more than a two to three year supply. With our current run-rate and owning around 25,000 lot or lot equivalents today, we’re under that three year sort of threshold that is our own internal regulator. We’d rather own less and control more, but we’re also growing the business. And we’ve talked about this in some of our previous conference or quarterly conference earnings calls, rather, that we’re looking to grow the business top line by 5% to 10% a year over the next several years, and that is a goal of ours. Land is a precious commodity, arguably one of the most precious in our industry. There has clearly been land inflation, rather on the development side over the last several years. That appears to be slowing somewhat, which is encouraging. On the other hand, for the prime locations, it’ll continue to be pricey for acquiring the A-locations. And it’s easy to say every builder wants A-locations, but you’ve got to pay for A-locations, and we’re not shy about doing that, and we’ll continue to. So there’s a lot of things happening on the density side, which can help mitigate against escalating land costs, but a lot of that is dependent upon local zoning. Right now, attached townhomes, which on average produce densities in the 6 to 10 per acre range or higher, represent probably 20% of our business, whereas five years ago was less than 10%. We’re doing a lot more attached townhomes in all of our markets right now, in terms of affordability and trying to manage land use costs, or land costs, I should say. By the way, contrasted with average densities on single family developments being anywhere from two to four units per acre, occasionally you’ll get lucky and be slightly over four, but townhome densities can be 3 to 4 to 5 times what single family would be. And so all that relates to end cost of a finished lot. But, we’ve always been pretty consistent with this strategy. We essentially do no land banking other than with the seller. As Phil often says, the best land banker is the seller. You can get them to hold until you’re ready. We try to do that as much as possible. We have not engaged with institutional or so-called third party land bankers. We know a lot of builders are. That doesn’t seem to be too appealing to us at this point. Frankly, just like, leaping big into the build for rent, wholesale business was never big for us either. We try to focus on our core business and do what we think we know how to do, and that’s sort of our approach. Phil Creek: And, Buck, this is Phil, just to add a couple things in there. Like Bob said, we really focus on premier locations as much as we can, hopefully the better school districts near the better shopping, near the better transportation. We think in really good times those A-locations will sell really well, but we also think in difficult times they will still sell okay, so you can work through it. So, we strive to own a two to three year supply, and inside that two to three year, to have about a one year supply of finished lots, so we don’t go dark in communities or don’t rely too much on outside developers and those type of things. Today, we develop about 80% of our own sites, which has been a little higher than in the past. Bob Schottenstein: And, as far as off balance, you look today, we have about 26,000 lots off the books under option. The value of that’s about $1.4 billion. Again, a lot of that’s raw. It’s about $1.4 billion. And as far as risk dollars, we have risk dollars of about $90 million of that, which is about 7% of the value. So, again, we have about 7% of that lot value at risk. Again, we try to get terms with the sellers as it makes sense. But, we feel very good about where we are. Our current closing rate is about 9,000 units a year, so owning less than 27,000, which is where we are now, we feel really good about that. And, again this year, we’re going to open about 80 new stores, last year, we opened 76. We feel good about that. We are working through stores a little faster than we thought. And, that’s why it’s brought our average community count run-rate down to maybe 5% this year. We thought it would be more like 10% the first of the year. But, we’re always concentrating on the location. The quality of the community sales pace is very, very important to us. But, overall, we feel like we’re in really good shape. Buck Horne: That was exceptionally thorough and really impressive answer. So, thanks for all the details on that question. So, second quick follow-up, just thinking about the resale inventory situation in your market, does it vary? Because, you’re exposed to some markets that both have quite a year of your increase in resale inventory, but several others particularly kind of in those Ohio markets where inventory remains very, very tight near historic lows. I’m just wondering if you can maybe highlight, is that does that play out in terms of the level of incentives you’re offering in the different regions and different markets? What does it take to incentivize and sell a house in the northern markets versus the southern markets right now? Bob Schottenstein: First, let me make a comment about inventory. Clearly, we’ve seen a pretty noticeable increase, particularly in Florida. Some of the Texas markets have jumped up quite a bit as well. Keep in mind that some of that inventory is builder specs, not your traditional used home listings. Increasingly, builder specs, which for many years going back maybe a decade or so didn’t really show up in the MLS listings. Now we’re in there. So it’s not all just used homes. A lot of it is us offering our specs with builders, building more specs now than ever before. But frankly, we haven’t seen much of that impact, our use of incentives. There’s very few markets where we haven’t had to incent. 70% of our buyers are utilizing below market financing. It’s as much in Minneapolis, Chicago and Columbus as it is in Tampa and Raleigh and Dallas. And there’s not really a discernible difference between any of those. By historical standards, inventory levels in most of our markets are still very manageable. And while it’s something we watch very carefully monthly, we’re not going to ignore it. But I don’t consider it a serious issue at this point by any means. Buck Horne: All right. Great. Thanks guys. Congrats and good luck. Bob Schottenstein: Thank you. Thanks. Operator: Thank you. [Operator Instructions] Next question comes from Jay McCanless from Wedbush. Please go ahead. Jay McCanless: Hey, good morning, everyone. So follow up on Buck’s question — Bob Schottenstein: Good morning, Jay. Jay McCanless: Good morning, Bob. Follow up on Buck’s question. Could you talk about what the gross margin differential is between your northern segment and your southern segment? Bob Schottenstein: I don’t know that I have that specifically in front of me at this point, Phil. We’ve never really given that kind of specific guidance. I mean, it’s really — it’s a bit of a mixed bag. I will tell you that if you look at — I’ll try to answer it this way. If you take the top six performing divisions on gross margin, one or two are in Texas, one or two are in the Carolinas, one or two are in Florida and one or two are in the Midwest. The issue, Jay it’s pretty much a lot. Sorry, Phil, let me just say this. A lot of it relates to the strength of our operation, the quality of our communities. It’s more about that than it is about Ohio versus Florida. Phil Creek: It really does fall down to me. We are in the subdivision business and we right now today and things are always different with 17 divisions. We have a couple divisions that have a couple of great stores that are doing 5, 8, 10 a month at exceptional margins. And that just puts a lot of money at the bottom line. But all I can tell you is the last couple of years, when things were really hot, certain markets, Texas, Florida, the Carolinas in general were really hot. The Midwest wasn’t so hot. And then there were times in our operations that the Midwest has the best margins. So it just kind of really depends on markets in general and the stores we have open. But overall, we’re just really pleased with our margins and our returns. We focus very much on that, as you know. Jay McCanless: Right. And that leads into my second question, which 27.9 is pretty darn impressive. But how sustainable do you think this is going to be? Especially in light of what you said earlier, Bob, that incentive levels probably don’t come down from here. How sustainable do you think that number is going into the back half of the year? Phil Creek: I mean, it’s a hard number to answer, because like I said in my comments, 30% of our closings sold and closed in the quarter. And in general, what happens is the incentives tend to be a little higher on inventory that you’re trying to move through the system. But the backlog today isn’t hardly any different than it was three months ago, as far as the backlog margins and so forth. It’s very hard to find these locations, get everything zoned, approved, developed, community open. We’re not a volume-first driven company, as some of our competition is. So every subdivision is different. We kind of do what we need to do to get a certain amount of volume through communities. But we were very surprised our second quarter margins were better than our first. Bob Schottenstein: Yeah. And the only thing I’d add, another way to ask that question, I don’t mean to put words in your mouth, Jay. But another way to ask that question would be, how sustainable are 17.5% pre-tax margins? Because that’s where we are right now. And I hope they’re sustainable for the next several years. But, even if they dropped a little bit down to 16 or 15, we’d still be better than most, if not almost all the other builders right now. There’s only two or three builders whose pre-tax margins are at our level or above. And many are below 15 today. And so we don’t want ours to drop. But I think ours — I think our margins over the last number of years, have compared very favorably with our peers. And I believe they’ll continue to. That’s the best way I can answer that. Phil Creek: And a big impact also, Jay, is the new stores. Like we said, we opened 38 new stores the first half. We opened 76 new stores last year. And we intend to open more than 38 new stores in the second half. And a lot of the impact of your expense levels, getting those stores open, and also your margins, I mean, hopefully we’re opening the right way and don’t get too far ahead of ourselves and get off on the right foot. But there’s just a lot of moving parts to that. Jay McCanless: Got it. And then the next question I had in terms of G&A dollars, a little higher than we were expecting this quarter. What should we think about as a good quarterly run rate for that, especially with the increase in community count you guys were talking about? Phil Creek: Well, when you look at it, I do have about 10% more people today than a year ago. I have more stores than I had a year ago. Our selling expenses on the variable side are a little higher than a year ago. So we were a little disappointed with our SG&A in the second quarter. I wish you were hoping to be a little bit less than last year. It’s back to the old thing. You don’t want expenses growing faster than revenue. But I would imagine I’ll kind of stay kind of where I am, Jay, as far as the percentage and so forth in that 11% range. Jay McCanless: And then could you talk about pricing power during the quarter? Maybe what percentage of communities you’re able to raise price or hold price during the quarter? Bob Schottenstein: I don’t have an exact percentage. My sense is that because of the softness, second quarter being slightly softer than the first, that very few communities did we raise prices. There might have been a handful. Most either, we kept the same. There might have been a few probably as many that we raised is that we’ve lowered. My guess is that 80% or so stayed the same. And on the fringes there might have been a few that we raised or a few that we had to lower given the slight softening and demand. Phil Creek: And also the good thing, as I mentioned, our construction costs were pretty much flat the second quarter versus the first cycle time. So we are working on all the things we can to continue helping our returns. Jay McCanless: Yeah. And that’s — those can be my last question. Just could you talk about what you’re seeing in terms of lumber prices? Is that a tailwind? And then also maybe what you’re hearing on labor? Phil Creek: Well, lumber prices have moved in the right direction for our industry, clearly, that’s a good thing. Total hard costs during the quarter, they’re pretty much a push. But every market’s a little bit different. We just got through having detail revised budget discussions with all of our division leadership teams, which included all of our purchasing heads and so forth. But overall, it kind of looks like things are a push. As Bob said, we’re doing more attached townhouses. We’re doing more smaller single family detached. Our average sale price has pretty much been flat. We’re trying to deal with affordability as best we can. We’re not anticipating and really never do getting any benefit from lower cost. Land development costs continue to go up, but not at the double digit level they have been going up the last few years. So that’s helping us. But we’re not counting on cost reductions to really help us that much, Jay. Jay McCanless: Sounds great. Thanks, guys. Phil Creek: Thank you. Thanks. Operator: Thank you. Next question comes from Alex Barron at Housing Research Center. Please go ahead. Alex Barron: Thanks, guys, and congratulations on the results. Going back to the — Phil Creek: Thank you, Alex. Alex Barron: You’re welcome. Going back to the SG&A, was there any one time item or is this kind of a run rate to get to $64 million corporate expense? Bob Schottenstein: Now, there’s not anything really unusual in there. It’s just a combination of 10% more people, because we’re opening more stores and obviously plan on continuing our growth next year. It’s just a combination of all those things, more stores and more people, a little more selling expense. Alex Barron: Got it. And as far as the bill time, you mentioned that you cut down on 10 days. But can you tell us from what to what? Like, what’s the current bill time and how much more do you think you can push it? Bob Schottenstein: I think I can tell you this. I think we’re probably about at near max. We’re at or below pre-COVID levels in nearly every single one of our markets. We’ve actually improved in some markets from pre-COVID. I don’t know how many more days we can sneak out of it. But right now, in the vast majority of our divisions, our construction efficiencies are at a very high level and a very, very acceptable level. Alex Barron: But in absolute, is it like four months, something in that ballpark? Bob Schottenstein: Average right now, average right now is about 140. Yeah, but some markets were in the 110s, 107s, 105s, where we do, maybe more smart series. And in markets where we have more towns, you’ll see — there can be some pretty big variations from market to market. Phil Creek: Yeah, we actually have templates for each of our product lines. And again, as Bob said, that varies by market also. But overall today, we’re like about 140. Alex Barron: Got it. If I could ask one more. In terms of spec versus built to order, like what percentage are you guys at right now? Phil Creek: We’re about 60% spec right now. Alex Barron: OK. Thanks, guys. And best of luck. Bob Schottenstein: Thanks so much. Operator: Thank you. That is all the questions we have. I will turn the call back over to Phil Creek for closing comments. Phil Creek: Thank you for joining us. Look forward to talking to you next quarter. Operator: Ladies and gentlemen, this concludes your conference for today. We thank you for participating and we ask that you please disconnect your lines. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post M/I Homes boasts record Q2 revenue and optimistic outlook By Investing.com first appeared on Forex Trader Hub.

By David Shepardson WASHINGTON (Reuters) -The chair of the U.S. Senate Commerce Committee wants the Federal Aviation Administration to conduct a thorough review into its oversight of Boeing (NYSE:) and other manufacturers, raising serious questions about the government’s scrutiny of the planemaker. “While the FAA has rightly focused on Boeing’s production quality shortcomings, I am concerned about whether FAA action – or inaction – contributed to Boeing’s problems,” Senator Maria Cantwell said in a letter first reported by Reuters to FAA Administrator Mike Whitaker. She said the FAA in April disclosed that it had conducted a combined total of 298 audits of Boeing and Spirit AeroSystems (NYSE:) over the prior two years that “did not result in any enforcement actions.” Boeing declined comment. FAA said it would respond to Cantwell but declined further comment. Spirit said it “continues to focus on ensuring first-time quality and compliance.” Cantwell said in her letter dated Saturday “a root cause analysis would ensure both Boeing and FAA have discovered the core causes of problems, rather than just symptoms.” She wants the analysis “to identify any deficiencies in its own oversight of Boeing and other manufacturers” and to “develop corrective actions and a plan for implementing them.” After a Jan. 5 mid-air emergency involving a new Alaska Airlines 737 MAX 9 that lost a door plug at 16,000 feet, the FAA conducted a 737 MAX production audit into Boeing opens supplier Spirit and found multiple instances where the companies had failed to comply with manufacturing quality control requirements. Last month, Whitaker said at a Senate Commerce hearing that the FAA was “too hands off” in oversight of Boeing before January. “The FAA should have had much better visibility into what was happening at Boeing before Jan. 5,” Whitaker said. The FAA’s approach before the mid-air incident was “too focused on paperwork audits and not focused enough on inspections,” Whitaker added. “We will utilize the full extent of our enforcement authority to ensure Boeing is held accountable for any noncompliance.” Whitaker in February barred Boeing from boosting production of its best-selling plane. Whitaker also said the agency will continue increased on-site presence at Boeing and Spirit for the foreseeable future. The National Transportation Safety Board said earlier the door panel that flew off a Boeing 737 MAX 9 jet mid-flight was missing four key bolts and no paperwork exists for the removal of those bolts. Whitaker confirmed no paperwork exists. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post US senator wants FAA to conduct thorough review into Boeing oversight By Reuters first appeared on Forex Trader Hub.

By Martin Coulter (Reuters) -Britain’s antitrust watchdog is scrutinising Google-parent Alphabet (NASDAQ:)’s partnership with artificial intelligence startup Anthropic and its impact on competition, the regulator said on Tuesday. More than 18 months after Microsoft-backed OpenAI triggered an AI boom with the release of ChatGPT, antitrust regulators around the world have been increasingly concerned by multiple deals struck between smaller industry startups and big tech giants. Agreements under scrutiny include Microsoft (NASDAQ:)’s partnerships with startups such as OpenAI, Inflection AI, and Mistral AI, as well as Alphabet’s ties to other smaller companies such as Anthropic and Cohere. Anthropic’s Claude AI models have vied for prominence with OpenAI’s GPT series. Last week, Britain’s Competition and Markets Authority (CMA) issued a joint statement alongside its counterparts in the United States and the European Union, promising to work together to safeguard fair competition in the AI industry. Anthropic, which was co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, last year said it had secured $500 million in investment from Alphabet, promising another $1.5 billion over time. Anthropic also uses Alphabet’s Google Cloud services as part of its operations. On Tuesday, the CMA said it was now seeking views on whether the Alphabet-Anthropic partnership could lessen competition in the UK, and has set a deadline of Aug. 13 for its invitation to comment. A spokesperson for Anthropic said the company would cooperate with the CMA and provide the “complete picture” about its partnership with Google. “We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” they said. The CMA will decide whether to launch an official investigation at the end of this process. A Google spokesperson said: “Google is committed to building the most open and innovative AI ecosystem in the world. Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.” !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Google parent’s partnership with AI startup Anthropic under UK scrutiny By Reuters first appeared on Forex Trader Hub.

(Reuters) -Procter & Gamble missed Wall Street expectations for fourth-quarter sales on Tuesday, as a cutback in spending by price-conscious consumers in the U.S. and Europe led to slower growth for its beauty and home care products. Shares of the Tide detergent maker fell 2.3% in premarket trading. Like its consumer goods peers Nestle and Unilever (LON:), P&G has seen a hit to sales as shoppers trade down to private label brands to offset price hikes on daily-use items like detergents and shampoos by popular household brands. P&G reported a 1% rise in overall volumes in the fourth quarter, while the average prices across its product categories also rose 1%. Its fourth-quarter net sales slipped to $20.53 billion from $20.55 billion a year ago. Analysts had expected $20.74 billion, according to LSEG data. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Procter & Gamble misses sales expectations on slowing demand By Reuters first appeared on Forex Trader Hub.

Unlike equity markets, the Forex market operates 24/5 without official opening and closing times. There is just a start and end to the trading week. The best time to trade Forex in Malaysia always depends on the Forex trader, despite popular theories on the best time to trade. From a technical and cost perspective, trading during the most liquid trading sessions offers core benefits. I will explain the unofficial trading sessions in the four core Forex markets and how they relate to local times in Malaysia. I will also discuss overlapping sessions, and why liquidity matters. The Forex market is the most liquid financial market globally, with daily turnover approaching $8 trillion, expected to exceed $10 trillion by the decade’s end. The Forex market participants are asset management firms, hedge funds, banks, financial firms, central banks, commercial companies, brokers, retail traders, and investors. Currency pairs are the assets traded in the Forex market, as each transaction consists of a quote and base currency, and each trade is essentially two transactions. Forex liquidity refers to the ease of buying and selling currency pairs. Liquidity directly impacts trading fees, as high liquidity results in lower spreads, the difference between the bid and ask price.  Since Forex trading is available 24/5, there are no opening and closing times but a start and end to the trading week. The trading week starts Sunday at 22:00 GMT and runs continuously until Friday at 20:00 GMT. Therefore, the Forex market hours in Malaysia are from Monday 06:00 KUL to Saturday 06:00 KUL. Despite the 24/5 nature, four core Forex centers account for most daily trading volumes, market-moving events, and other factors that impact price action. Malaysian Forex traders must know the unofficial opening and closing times, measured by their respective equity market hours, of the Sydney, Tokyo, London, and New York trading sessions to understand price action and fine-tune their Forex trading strategies. Sydney Forex Trading Session   Local Time GMT Time KUL Open Monday 08:00 Sunday 22:00 Monday 06:00 Close Monday 16:00 Monday 06:00 Monday 14:00 Tokyo Forex Trading Session   Local Time GMT Time KUL Open Monday 09:00 Sunday 24:00 Monday 08:00 Close Monday 18:00 Monday 09:00 Monday 17:00 London Forex Trading Session   Local Time GMT Time KUL Open Monday 08:00 Monday 07:00 Monday 16:00 Close Monday 16:00 Monday 15:00 Monday 24:00 New York Forex Trading Session   Local Time GMT Time KUL Open Monday 08:00 Monday 12:00 Monday 20:00 Close Monday 16:00 Monday 20:00 Tuesday 06:00 Malaysian Forex traders can trade 24/5, but they must understand the notable differences in the liquidity of currency pairs, which impact spreads, forex trading fees, order execution, and profitability. The Forex market hours Malaysia relevance can impact trading the Malaysian Ringgit, a thinly traded currency pair among online Forex brokers with scarce availability. The reasons why liquid trading sessions are the best include: More liquidity, which results in tighter spreads Tighter spreads lead to higher profits Faster order execution, which can lead to positive slippage Positive slippage adds to trading profits Which Forex trading sessions are the most liquid? The last two hours of the New York trading session (1) The first hour of the Tokyo trading session (2) The last hour of the Sydney trading session (3) The first two hours of the London trading session and the last hour of the Tokyo trading session (4) The first two hours of the New York trading session and the last two hours of the London trading session (5) Here is a table with the best time to trade Forex in Malaysian local time based on maximum liquidity and minimum trading fees: Forex Session Malaysian Start Time Malaysian End Time (1) 04:00 06:00 (2) 08:00 09:00 (3) 13:00 14:00 (4) 16:00 19:00 (5) 20:00 24:00 When two Forex markets operate simultaneously, overlapping sessions occur. They increase liquidity and create more trading opportunities with lower trading fees. Malaysian Forex traders should consider the three overlapping Forex trading sessions outlined below, converted into a Forex market hours Malaysia table with relevant currency pairs. The London – New York overlap session is the most essential Forex trading period for Forex traders, which accounts for 60%+ of all Forex trading activity. Sydney – Tokyo Overlapping Forex Trading Session Malaysia Start Time Malaysia End Time Currency Pairs to Consider Monday 08:00 Monday 14:00 AUD/USD, AUD/NZD, NZD/USD, AUD/NZD, AUD/JPY, NZD/JPY, USD/JPY Tokyo – London Overlapping Forex Trading Session Malaysia Start Time Malaysia End Time Currency Pairs to Consider Monday 16:00 Monday 19:00 GBP/JPY, EUR/GBP, EUR/USD, EUR/JPY, GBP/CHF, EUR/CHF, CHF/JPY London – New York Overlapping Forex Trading Session Malaysia Start Time Malaysia End Time Currency Pairs to Consider Monday 20:00 Monday 24:00 EUR/USD, USD/CHF, USD/JPY Since the Forex market usually reacts first to economic and geopolitical news, Forex traders catch up to developments by making portfolio adjustments during the unofficial Forex market opening times. The best Forex brokers in Malaysia maintain a diverse asset selection to ensure Forex traders have cross-asset trading opportunities. The Malaysian Ringgit is an exotic currency pair, meaning low liquidity, limited availability, and high trading fees among online Forex brokers. Some Forex traders prefer an inflow of trading volumes, while others avoid it, all dependent on their trading strategies. The unofficial Forex market opening times usually deliver a temporary volatility surge, which some experienced Forex traders prefer, as it creates trading opportunities. Forex traders may experience a volatility spike at any moment primarily related to market-moving events. Profitable traders use an economic calendar, preferably an AI-assisted one, to know when to look for market-moving events, as news releases can impact price action tremendously. Market analysis is an ongoing, time-consuming, and sometimes stressful task that traders must conduct before taking a position and throughout the trade. Many profitable Forex traders have AI-assisted trading solutions, as algorithmic trading accounts for 80%+ trading activity. The best Forex brokers in Malaysia maintain cutting-edge trading infrastructure to ensure Forex traders have an edge. Besides Forex market hours in Malaysia, Forex traders should consider the following: Forex overlap session awareness to ensure execution of the right trading strategy Using an economic calendar to plan for avoidable volatility spikes Executing risk management appropriate for the portfolio size Avoiding trading for the sake of trading Using AI-assisted trading tools, which some of the best Forex brokers in Malaysia offer Trading during the most liquid times is ideal for many and is generally preferred from a technical perspective. However, the most liquid Forex market hours in Malaysia may not suit all Forex traders. The best time to trade also depends on the trading strategy, and the asset being traded. Understating the relevance of Forex market hours in Malaysia can help traders plan their trading schedule. The Forex market operates 24/5 with a start and end to the trading week, starting Sunday at 22:00 GMT and ending Friday at 20:00 GMT or from Monday 06:00 KUL to Saturday 06:00 KUL. Malaysian Forex traders can trade whenever they decide, determined by their strategy, currency pairs, and individual circumstances. The opening, closing, and crossover sessions of the four core Forex markets in Sydney, Tokyo, London, and New York provide the highest liquidity and the lowest fees. Source link The post When is the Best Time to Trade Forex in Malaysia? first appeared on Forex Trader Hub.

Investing.com — Shares of BP (LON:) climbed on Tuesday after the company reported robust financial performance for the second quarter of 2024. Strong operating cash flow and a significant reduction in net debt fueled the positive results. The company generated substantial cash flow of $8.1 billion, enabling it to lower net debt to $22.6 billion. BP’s net income of $2.76 billion slightly exceeded analyst expectations, while its underlying cash flow from operations (CFFO) excluding working capital also surpassed forecasts, as per RBC Capital Markets. The company reported a 10% dividend increase, in line with RBC’s expectations but surpassing market consensus. Additionally, BP confirmed that its share buyback program will continue at a quarterly pace of $1.75 billion, aligning with RBC’s forecast. BP is advancing several key growth projects, including the Kaskida development in the Gulf of Mexico. The company is also streamlining its bioenergy business by taking full ownership of bp Bunge (NYSE:) Bioenergia and scaling back new biofuels initiatives. “We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025,” said BP CEO Murray Auchincloss. BP remains confident in its ability to generate strong cash flow and plans to return at least 80% of surplus cash flow to shareholders through dividends and buybacks.  The company aims to balance investments in traditional operations with allocations toward lower-carbon energy initiatives, while maintaining financial discipline.   !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post BP shares rise on strong Q2 results, debt reduction By Investing.com first appeared on Forex Trader Hub.

By Max A. Cherney SAN FRANCISCO (Reuters) -Apple relied on chips designed by Google (NASDAQ:) rather than industry leader Nvidia (NASDAQ:) to build two key components of its artificial intelligence software infrastructure for its forthcoming suite of AI tools and features, an Apple (NASDAQ:) research paper published on Monday showed. Apple’s decision to rely on Google’s cloud infrastructure is notable because Nvidia produces the most sought-after AI processors. Including the chips made by Google, Amazon.com (NASDAQ:) and other cloud computing companies, Nvidia commands roughly 80% of the market. In the research paper, Apple did not explicitly say that it used no Nvidia chips, but its description of the hardware and software infrastructure of its AI tools and features lacked any mention of Nvidia hardware. Apple did not comment on Monday. The iPhone maker said that to train its AI models, it used two flavors of Google’s tensor processing unit (TPU) that are organized in large clusters of chips. To build the AI model that will operate on iPhones and other devices, Apple used 2,048 of the TPUv5p chips. For its server AI model, Apple deployed 8,192 TPUv4 processors. Nvidia does not design TPUs but rather focuses its efforts on so-called graphics processing units (GPUs) that are widely used for AI efforts. Unlike Nvidia, which sells its chips and systems as standalone products, Google sells access to TPUs through its Google Cloud Platform. Customers interested in buying access must build software through Google’s cloud platform in order to use the chips. Apple is rolling out portions Apple Intelligence to its beta users this week. Reuters reported the use of the TPU chips in June, but Apple did not disclose the full extent of its reliance on Google hardware until Monday’s research paper. Google did not return a request for comment, while Nvidia declined to comment. Apple’s engineers said in the paper it would be possible to make even larger, more sophisticated models with Google’s chips, than the two models it discussed in the paper. Apple unveiled a slew of new AI features at its June developer conference, including integrating OpenAI’s ChatGPT technology into its software. The Cupertino, California-based company’s stock ticked down 0.1% to $218.24 in regular trading on Monday. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Apple used Google’s chips to train two AI models, research paper shows By Reuters first appeared on Forex Trader Hub.

EUR/USD lost grip of the 1.0850 level, poised for further downside. EU GDP data due on Tuesday as Fed rate call looms ahead. US NFP jobs data dump slated for Friday as markets bet on September rate cut. EUR/USD lost control of a near-term bullish recovery, testing into fresh two-week lows near the 1.0800 handle as momentum drains out of the pair ahead of an update to pan-EU Gross Domestic Product (GDP) figures. The Federal Reserve’s (Fed) latest rate call is due on Wednesday, with another round of US Nonfarm Payrolls (NFP) on the books for Friday. Forex Today: Flash GDPs in Europe and US jobs in the spotlight A slew of European data is slated for Tuesday, with both German and pan-EU GDP update figures due during the Europe market session. QoQ German GDP is expected to ease to 0.1% in Q2 compared to the previous print of 0.2%, while annualized pan-EU GDP growth is forecast to increase to 0.6% from the previous 0.4%, though the QoQ figure for the second quarter is expected to tick down to 0.2% from the previous 0.3%. Preliminary EU Harmonized Index of Consumer Prices (HICP) inflation is due on Wednesday, with YoY HICP inflation forecast to tick down to 2.8% from the previous 2.9%. After that, global markets will be pivoting to see the latest outing from the Fed. The Federal Reserve’s upcoming rate call on Wednesday will be closely watched by investors who are hoping for signs that the Fed is gearing up to implement a widely-anticipated rate cut when the Federal Open Market Committee (FOMC) meets again in September. The market is generally expecting a minimum 0.25% rate cut on September 18, with rate markets indicating a 90% likelihood of a 25 basis point reduction and a hopeful 10% chance of a larger cut, according to the CME’s FedWatch Tool. In addition, US Nonfarm Payroll (NFP) data is set to be released on Friday, which is an important factor in the Fed’s employment criteria. Investors will be monitoring these figures closely in the hope of seeing a continued slowdown in hiring, which could encourage the Fed to initiate a new cycle of rate cuts in September. ADP Employment Change figures for July will be published on Wednesday, providing a forecast for Friday’s NFP jobs report, but this forecast is somewhat unreliable due to its inconsistent track record for accuracy. EUR/USD technical outlook Fiber’s downside push into the 1.0800 region sees the pair coming back into range of the 200-day Exponential Moving Average (EMA) at 1.0795 as markets add in to EUR/USD’s near-term decline from multi-month highs that fell just short of breaking through 1.0950. EUR/USD has fallen 1.3% top-to-bottom as bids backslide into long-term averages, and buyers are struggling to find a foothold as intraday price action battles with the 50-day EMA at 1.0818. EUR/USD daily chart Euro FAQs The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.   Source link The post EUR/USD explores further downside ahead of EU GDP prints first appeared on Forex Trader Hub.