Latest news with #BloombergIntelligence
Business Recorder
2 hours ago
- Business
- Business Recorder
Pakistan leads emerging markets in sovereign risk recovery, says Bloomberg Intelligence
In a positive development on the economic front, Pakistan has emerged as the most improved emerging market in terms of sovereign credit risk, according to the latest analysis by Bloomberg Intelligence. Backed by macroeconomic stabilization, structural reforms, and successful engagement with the International Monetary Fund (IMF), the country has recorded the sharpest decline in default risk globally over the past year—signaling renewed investor confidence and growing financial credibility, said Khurram Schehzad, Advisor to Pakistan's Finance Minister, in a post on social media platform X on Saturday. 'As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by Credit default swaps (CDS)-implied probability. 'Pakistan topped Global EM Rankings in default risk reduction, as the country has recorded the largest drop in sovereign default risk globally over the last 12 months,' said Schehzad. A CDS is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse them if the borrower defaults. Citing Bloomberg Intelligence data, default probability was down from 59% to 47%, an 11 percentage point improvement, said Schehzad. 'This marks the sharpest decline among major emerging markets, ahead of Argentina (-7%), Tunisia (-4%), and Nigeria (-5%). In contrast, countries like Turkey, Ecuador, Egypt, and Gabon have seen their default risks rise.' Schehzad was of the view that the decline in Pakistan's risk signals renewed investor confidence—fueled by 'macroeconomic stabilisation, structural reforms, successful IMF engagement and timely debt repayments, and improved credit outlooks by S&P, Fitch, and others'. 'Pakistan is not only back on the map—it is moving forward with stability, credibility, and reform at its core,' he said.
Yahoo
3 hours ago
- Business
- Yahoo
This week in stocks: Why BMO Capital Markets thinks Costco shares still have room to run
Every weekend, the Financial Post breaks down the most interesting developments in this week's world of investing, from top performers to surprising analyst calls and stocks you should have on your radar. Here's this week's edition. Do investors at BlackBerry Ltd. (BB) finally have something to cheer about? That's something analysts were musing about after shares of the smartphone pioneer turned cybersecurity play popped by nearly 12 per cent on Wednesday, following an earnings report that showed a first-quarter profit had turned positive. The Waterloo, Ont.-based company also 'slightly' hiked its revenue forecast for the year. Though the stock pared some of its gains, BlackBerry shares still closed out the week up 4.7 per cent per cent at $6.21 in Toronto. BlackBerry had been among the Top-10 gainers on the S&P/TSX composite index as late as Thursday. The upbeat earnings lead Bloomberg Intelligence analysts to hazard that the tech firm 'may be finding its footing' and were followed by a handful of price target increases. The biggest hike on the Toronto-listed shares came from CIBC Capital Markets, which raised its target to $8.24, a 30 per cent premium to Friday's close. The S&P500 hit a new all-time high on Friday despite renewed trade tensions between the U.S. and Canada and analysts are optimistic that there are more gains to come on both sides of the border before the year is out. This week, Brian Belski, chief investment strategist at BMO Capital Markets, reconfirmed his base case for the TSX to hit 28,500 this year, hinging the forecast on several factors including 'relatively resilient' Canadian growth, falling interest rates and improving stock valuations. 'Our view in terms of Canadian equities remains resolute. Namely, Canada continues to provide strong relative value, a converging growth profile with the U.S. and improving equity flows,' Belski said in a note. The TSX is up 7.9 per cent year to date and almost 18.9 per cent since Donald Trump's reciprocal tariffs announcement in early April. Belski's base case implies an additional seven per cent return by year end, and though he thinks U.S. markets will be stronger through the end of the year, he still has the TSX as the net winner for 2025. Costco Wholesale Corp. (COST) has been one of the market's top performers over the past decade, but don't let its big run scare you away. BMO Capital Markets food retail analyst Kelly Bania said the stock has more room to grow and confirmed Costco as a top pick in a note out this week. Her refreshed rating is based on three major announcements made recently by the company: a $10 monthly credit on same-day Instacart orders for executive members; extended shopping hours, also for executive members; and a standalone gas station test taking place in California. 'These new benefits and perks highlight Costco's extreme membership value proposition, particularly the key executive membership base, which accounts for 47 per cent of members but 73 per cent of sales,' Bania said. Bania has set a price target of US$1,175, a level the stock topped on Feb. 13 before slumping in March. Year to date, Costco is up 7.5 per cent and closed Friday at US$985.14. Nike Inc. (NKE) The sports-giant is back in the running after its latest earnings appeared to show Nike's year-long sales slump is coming to an end. Deutsche Bank AG analyst Krisztina Katai lifted her target to US$77 Friday from US$71. Nike jumped 15 per cent on Friday and was trading at US$72.04. Nvidia Corp. (NVDA) The darling of the Magnificent Seven stocks could elevate itself into further rarified territory as it looks to become the first company to reach a US$4 trillion market capitalization. Nvidia's prospects were boosted on reports that its largest customers including Meta Platforms Inc., Microsoft Corp., Inc. and Alphabet Inc. are set to increase spending on artificial intelligence. Shares of the company were up nearly 10 per cent from last Friday and are up 67 per cent after slumping badly in early April when it looked like its chip business would be throttled by trade troubles between the U.S. and China. The consensus price target from analysts who cover the company rose to US$173.47 from US$171.38. Nvidia closed Friday at US$157.75. The week in stocks: Empire, Algoma Steel, and why the case for the trade in war 'keeps getting stronger' The week in stocks: Dollarama still cashing in and silver gets buffed up • Email: gmvsuhanic@ Are you an investor looking for stock ideas and market insight? Sign up for the weekly FP Investor Newsletter here to get the best of the Financial Post's investing news, analysis and expert commentary straight to your inbox. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17 hours ago
- Business
- Yahoo
ETF Flows Set for Record; Big Money Enters High-Risk Funds
U.S. exchange-traded fund flows are on track to break records again in 2025, with $1.2 trillion projected to pour into the market despite modest performance by stocks and bonds, according to a Bloomberg Intelligence midyear outlook report. The relentless appetite for ETF products has persisted even as U.S. stocks have posted volatile performance and gained around 3% year to date. Bonds have also gained roughly 3% as well, the report showed. The continued surge in ETF flows demonstrates how the product has become a default vehicle for investors regardless of market conditions, driven by innovation in active management and crypto products alongside sustained demand for cheap beta exposure, Bloomberg Intelligence Analysts Eric Balchunas and Athanasios Psarofagis said. ETF flows usually slow when markets cool but not this year. A steady stream of cash is going into gold and cash-like ETFs too, according to the outlook. Another reason flows are so robust is that active management has entered the market in full, adding to steady, passive flows. The products as a group are taking in 40% of net flows despite holding only 10% of the assets, the analysts found. Most of the flows are going to active equity, a category that was dormant for the first 20 years that ETFs existed, according to the report. The best-selling active funds this year include a diverse group of covered call, CLO and thematic ETFs. Some high-risk active ETFs are also pulling in "big money," such as the YieldMax MSTR Option Income Strategy ETF (MSTY) and the Direxion Daily TSLA Bull 2X Shares (TSLL), the report found. Beyond the flows, more than 900 ETFs may launch this year, crushing last year's record of just over 700. Nearly 90% of this year's launches are active, Bloomberg Intelligence data show. This year, 16% of ETF launches have been some form of a single-security strategy that uses either leverage or options overlays, according to the outlook. Retail trades made up about 20.5% of U.S. equity volume in the first quarter, up from 17% a year earlier. While the average fee across the ETF industry is around 59 basis points, single-stock strategies command a premium, averaging 91 basis points, according to the report. For those with leverage or derivatives overlays, fees often exceed 100 basis points. Assets in leveraged long ETFs have nearly returned to their record $101 billion, highlighting the strong risk appetite still present among investors, the research | © Copyright 2025 All rights reserved Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
a day ago
- Business
- Bloomberg
S&P 500 Rally Faces Key Test as Profit Engine Is Seen Sputtering
The S&P 500 Index is on the cusp of a record high but with earnings season just weeks away, the foundation of the rally is about to get a major test. With tariff headwinds still a concern, Wall Street sees profit growth of 2.8% year-over-year for the second quarter for the benchmark, according to data compiled by Bloomberg Intelligence. That would be the smallest jump in two years. Adding to the concern, only six of the 11 S&P 500 sectors are projected to post a bump in earnings, the fewest since the first quarter of 2023, estimates compiled by Yardeni Research show.
&w=3840&q=100)
Business Standard
a day ago
- Business
- Business Standard
Funds flexing 60/40 playbook becoming investor favourites in India
The growing demand for hybrid funds may indicate the huge popularity of equity investments is starting to wane in the world's most populous economy Bloomberg Indian funds that offer built-in diversification by combining stocks with assets such as bonds and gold lured in more money than pure equity ones last month for the first time in a year, pointing toward a potential long-term investment shift. The so-called hybrid plans attracted a net ₹208 billion ($2.4 billion) of inflows in May, while stock funds garnered just ₹190 billion , according to data from the Association of Mutual Funds in India. The switch comes as global geopolitical turmoil escalates and Indian equities trail their worldwide peers amid concern over weaker earnings growth. 'Investors are taking a break and are hedging some of their assets into hybrid funds,' said Sailesh Jain, who oversees more than $4 billion as a money manager at Tata Asset Management Pvt in Mumbai. 'These funds are a perfect mix during such uncertain times as they offer growth potential by staggering equity investments and generate income through debt investments.' Potential buyers are also shying away from Indian shares as they appear pricey based on valuation metrics, while interest in pure bond funds has been damped by the diminishing prospect of future central bank interest-rate cuts, Jain said. The two most popular categories of hybrid funds in May were multi-asset and arbitrage schemes. The former must have investments in at least three asset classes with a minimum allocation of at least 10 per cent in each, according to the market regulator's guidelines. The latter must have a minimum of 65 per cent in equities or equity-related products, and a maximum of 35 per cent in debt. One of the advantages of hybrid funds is their tax efficiency. Arbitrage funds that invest both in stocks and bonds are taxed at the same rate as stocks, even though they offer exposure to debt. Pure bond funds, on the other hand, are taxed at a higher rate. Multi-asset funds that invest in precious metals such as gold have also lured in higher inflows due to the record-breaking rally in bullion. Such funds saw their assets under management climb to an all-time high of 1.2 trillion rupees at the end of May, based on data from the mutual fund association. The performance of Indian stocks has started to improve in recent months, with the MSCI India gauge climbing about 16 per cent from a one-year low set in February. At the same time, recent threats such as rising global trade frictions and geopolitical conflicts still argue for diversification. 'Given persistent geopolitical headwinds, hybrid funds may offer better risk-reward notably in the context of India's expensive valuations and sluggish earnings growth,' said Nitin Chanduka, a strategist at Bloomberg Intelligence in Singapore.
