Latest news with #EconomicUncertainty
Yahoo
3 days ago
- Business
- Yahoo
Cratering oil prices in 2025 are 'dangerously close' to being unprofitable for producers, top investor says
Oil prices have been volatile in 2025 as economic uncertainty and trade tensions have weighed on sentiment. Dwight Scott of Quantum Capital said that prices are nearing a dangerously low level for producers. He added, though, that he doesn't think this difficult period will last for the oil industry. Oil prices have been volatile this year, and they've cratered into a dangerous zone that threatens profitability for producers, a top energy investor said this week. Dwight Scott, executive vice chairman of Quantum Capital Group, told Bloomberg TV this week that at the rate prices are going, they are "dangerously close" to no longer being profitable for producers. US crude prices are down about 8% this year, trading at $66.68 Thursday morning. "In the mid-$60s, you get dangerously close to where oil prices don't really drive appropriate returns for new drilling," he said, adding that the industry's rig count has been off for the past two months, referring to the number of active drilling rigs in one area. In the interview on Wednesday, Scott addressed the oil industry's supply and demand dynamics, laying out what he sees for the future of the industry. President Donald Trump's election was seen as a bullish indicator for the oil and gas sector early in the year but so far, prices have been subject to volatility amid economic uncertainty and high global supply. Scott added that Trump's drill baby drill" mantra has mostly been moot, as the industry in the US has already been pumping record amounts of crude in recent years. That's part of the reason US producers have been hesitant to keep flooding the market with oil, as even more supply could further depress prices. Scott said that he believes that the streak of declines is related to uncertainty surrounding President Trump's tariffs. He added, though, that he believes the slump should be temporary, predicting that the US will continue to be a top energy producer. Read the original article on Business Insider
Yahoo
7 days ago
- Business
- Yahoo
High Growth Tech Stocks in Asia for July 2025
As of July 2025, the Asian markets are navigating a complex landscape influenced by global trade tensions and deflationary pressures in China, with the Hang Seng Index seeing modest gains amid hopes for stimulus measures. In this environment, high growth tech stocks in Asia present intriguing opportunities for investors seeking to capitalize on innovation and resilience amidst economic uncertainty. Name Revenue Growth Earnings Growth Growth Rating Suzhou TFC Optical Communication 30.19% 29.63% ★★★★★★ Shengyi Electronics 22.99% 35.16% ★★★★★★ Shanghai Huace Navigation Technology 24.44% 23.48% ★★★★★★ Fositek 28.51% 35.31% ★★★★★★ Range Intelligent Computing Technology Group 27.31% 28.63% ★★★★★★ eWeLLLtd 24.95% 24.40% ★★★★★★ Global Security Experts 20.56% 28.04% ★★★★★★ Marketingforce Management 26.39% 112.30% ★★★★★★ CARsgen Therapeutics Holdings 81.53% 96.08% ★★★★★★ JNTC 55.45% 94.52% ★★★★★★ Click here to see the full list of 480 stocks from our Asian High Growth Tech and AI Stocks screener. Let's explore several standout options from the results in the screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: Zhongji Innolight Co., Ltd. is involved in the R&D, production, and sales of optical communication transceiver modules and optical devices in China, with a market cap of approximately CN¥161.42 billion. Operations: Zhongji Innolight focuses on developing and selling optical communication transceiver modules and devices. The company's operations are centered in China, contributing to its significant market presence. Zhongji Innolight has demonstrated robust financial growth, with a 95.9% surge in earnings over the past year, outpacing its industry's average of 8.8%. The company's revenue is also on an upward trajectory, growing at an annual rate of 20.6%, which surpasses the broader Chinese market forecast of 12.4%. Additionally, Zhongji Innolight maintains a strong commitment to innovation as evidenced by its significant R&D investments that align with its strategic focus on expanding its technological capabilities in high-growth sectors like communications and digital infrastructure. This approach not only fuels their current performance but also positions them well for future technological advancements and market demands. Click here to discover the nuances of Zhongji Innolight with our detailed analytical health report. Examine Zhongji Innolight's past performance report to understand how it has performed in the past. Simply Wall St Growth Rating: ★★★★★★ Overview: Accton Technology Corporation is engaged in the research, development, manufacturing, and sales of network communication equipment across Taiwan, America, Asia, Europe, and other international markets with a market capitalization of NT$445.45 billion. Operations: The company primarily generates revenue from its Computer Networks segment, amounting to NT$134.33 billion. It operates across multiple regions including Taiwan, America, Asia, and Europe. Accton Technology is distinguishing itself in the tech landscape with its aggressive expansion and innovation strategies. Recently, the company announced a significant investment of $94.03 million to boost its production capabilities in Vietnam, reflecting a sharp focus on scaling operations to meet growing demand. Financially, Accton is on a robust growth trajectory with earnings soaring by 63.1% over the past year, outstripping the broader Communications industry's decline of 1.2%. This financial vigor is complemented by an R&D commitment that not only underscores its dedication to technological advancement but also strategically positions it for sustained future growth in a competitive sector. Click to explore a detailed breakdown of our findings in Accton Technology's health report. Explore historical data to track Accton Technology's performance over time in our Past section. Simply Wall St Growth Rating: ★★★★★☆ Overview: Chenbro Micom Co., Ltd. is involved in the R&D, design, manufacturing, processing, and trading of computer peripherals and expendable systems across various international markets including the United States, China, Taiwan, and Singapore with a market cap of NT$63.76 billion. Operations: Chenbro Micom generates revenue primarily from its computer peripherals segment, amounting to NT$15.90 billion. The company's operations span the United States, China, Taiwan, and Singapore. Chenbro Micom is capitalizing on robust growth trends in the tech sector, particularly through its recent showcase at COMPUTEX 2025, where it highlighted advanced AI server solutions and strategic partnerships with major U.S. and Taiwanese companies. This event underscored Chenbro's commitment to innovation as evidenced by a significant 27.4% annual revenue increase and a 25.3% rise in earnings per year, positioning it well above the Taiwanese market average growth rates of 10% and 13.9%, respectively. Moreover, the firm's dedication to R&D is evident from its latest product launches and collaborations aimed at enhancing global enterprise cloud services, signaling strong future prospects in high-demand tech segments. Navigate through the intricacies of Chenbro Micom with our comprehensive health report here. Review our historical performance report to gain insights into Chenbro Micom's's past performance. Take a closer look at our Asian High Growth Tech and AI Stocks list of 480 companies by clicking here. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SZSE:300308 TWSE:2345 and TWSE:8210. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
12-07-2025
- Business
- Yahoo
Worst Spate of Downgrades Since 2021 Signals Pain
(Bloomberg) -- Credit rating downgrades are becoming more frequent, the latest sign that companies are starting to perform worse and raising fresh questions about whether corporate debt valuations should be as high as they are. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Why Did Cars Get So Hard to See Out Of? Can Americans Just Stop Building New Highways? How German Cities Are Rethinking Women's Safety — With Taxis Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On In the second quarter, around $94 billion of high-grade US debt was downgraded, compared with just $78 billion of upgrades, according to JPMorgan Chase & Co. strategists. It was the first time since early 2021 that downgrades outpaced upgrades in dollar terms, and more companies are at risk of being demoted later this year as economic uncertainty rises, JPMorgan strategists including Eric Beinstein and Silvi Mantri wrote this week. The economy faces unknowns now including whether trade wars will keep escalating. But corporate bond valuations are high, with US investment-grade spreads this week hovering around 0.8 percentage point, well below the two-decade average of around 1.5 percentage point. For junk securities, spreads are closer to about 2.8 percentage points, far short of the 4.9 percentage point average going back 20 years. That makes picking the right bonds crucial. 'Credit picking is super important now. You have to get your calls right,' said Jon Curran, head of investment grade credit at Principal Asset Management, in an interview. 'The vulnerability to downgrades is higher.' There are other reasons to be worried about credit quality now. High-yield borrowers are delaying about 9% of interest payments globally, known as paying in kind, according to JPMorgan Asset Management's Oksana Aronov, up from about 4% in 2020. And cash balances at high-grade US companies are showing signs of starting to fall. The second quarter earnings season begins in the US in the coming week, and will give more insight as to how companies are faring. Pacific Investment Management Co., overseeing $2 trillion, has been cautious in industries like retail that are facing long-term decline or those exposed to near-term risk of boosting borrowings, like metals and mining, homebuilders and autos, according to Sonali Pier, multi-sector credit portfolio manager at Pimco. She's leaning into sectors likely to continue to benefiting from strong free cash flow and earnings growth trends, like banks and pipeline companies and more defensive sectors like healthcare, utilities and defense. 'We've maintained a light footprint in areas of the market where we foresee more downgrade and fallen angel risk,' said Pier. Many investors are optimistic that company credit will generally remain strong. Overall US corporate yields remain high by the standards of the last decade. Portfolio managers in the US and Europe are selling default protection at an increasing pace, a signal they see little risk on the horizon. Their position on the main investment-grade US credit-default swap index now amounts to over $105 billion, the most in at least three years, based on data compiled by Barclays Plc and Bloomberg. It's a similar story in Europe. But by at least some measures, including not just ratings downgrades but also companies losing investment-grade status, the outlook is deteriorating. In the second quarter, there were about $34 billion of debt known as Fallen Angels, or bonds cut to junk, compared with just $3 billion of rising stars, JPMorgan strategists said. And on Friday, US President Donald Trump threatened a 35% tariff on some Canadian goods, ramping up his trade rhetoric. 'Businesses are vulnerable to tariffs but also living with uncertainty,' said Christina Padgett, head of leveraged finance and private credit research at Moody's Ratings. 'It's not confirmed for a lot of businesses what their fate is.' Week In Review A pre-summer frenzy in junk loans is seeing the market start to overheat, prompting investors to get a bit more picky about deals after spreads reached the tightest levels in years. Nissan Motor Co. raised $4.5 billion from a junk-bond sale in US dollar and euros, with the embattled automaker offering a record-high coupon on at least one part of the deal to drum up demand. Japanese telecom giant NTT Inc. sold $17.7 billion of dollar and euro bonds, marking the biggest-ever offering by an Asian corporate in the global debt market. Wall Street banks including JPMorgan Chase & Co. and UBS Group AG have begun early pricing discussions with investors for a $4.25 billion debt package to help finance Sycamore Partners' buyout of UK pharmacy Boots. Goldman Sachs Group Inc. and BBVA SA are among a group of lenders providing €500 million ($584 million) of debt to back Warburg Pincus' buyout of a majority stake in Uvex Group. A group of banks have beaten private credit lenders to arrange debt financing for French insurance broker Diot-Siaci, involving a loan of around €1.9 billion ($2.2 billion) as part of a capital reorganization. In the US investment-grade bond market, Broadcom Inc. sold $6 billion of bonds in its biggest deal since 2021, while American Honda Finance Corp. priced $2.25 billion of bonds in its largest such sale. Cruise operator Carnival Corp. sold $3 billion of seven-year high-yield bonds in the company's fourth deal of 2025. Banks from Wells Fargo & Co. to smaller Japanese lenders are flocking to top-rated collateralized loan obligation deals, pushing up secondary prices for buyout debt. Cablevision Lightpath LLC, a fiber optic communications services provider that is majority controlled by Altice USA Inc., is looking to sell as much as $2.8 billion of asset-backed securities. Saks Global Enterprises is negotiating terms of a previously announced debt plan with its creditors, as the retailer looks to increase support for a deal that will rearrange repayment priorities should the company fail to meet its obligations. Genesis Healthcare Inc., one of the largest nursing home operators in the US, filed bankruptcy and struck an initial deal to be acquired by affiliates of ReGen Healthcare LLC. On the Move Nick Adragna has been tapped by JPMorgan Chase & Co. to lead the bank's global investment-grade and macro credit-trading unit with co-head Pierre Morel set to retire. Barclays Plc is hiring leveraged finance banker Alex Ranson from UBS Group AG as US head of leveraged finance capital markets. His move follows the addition of UBS alumnus Marc Warm earlier this year as the London-based bank seeks to build out its debt franchise. Citigroup Inc. recruited Ryan Williams from Bank of Montreal to co-lead part of its leveraged-finance business, the latest move by its banking head to strengthen the firm's focus on private equity clients. Peter Yune, a director of high-yield trading at Bank of America, has resigned for a trading role at Deutsche Bank. Performance Trust Capital Partners is hiring Liz Harper, formerly at Barclays Plc, as part of the broker-dealer's effort to expand in fixed-income. Harper started earlier this month as a managing director with a focus on institutional investors in credit strategies across the US Midwest. Banco Santander SA is hiring Phil Tamplin, formerly at Mizuho Securities, to join the bank's leveraged finance team. Tamplin was previously a managing director for leveraged finance capital markets at Mizuho. Revolut Ltd., Europe's largest digital bank, hired Chris Rigby as head of capital markets for credit as it seeks to expand its presence in securitization markets. Until recently, Rigby was chief financial officer and chief investment officer at collapsed financial technology firm Stenn Technologies. Trump's Cuts Are Making Federal Data Disappear 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Will Trade War Make South India the Next Manufacturing Hub? Soccer Players Are Being Seriously Overworked Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P. Sign in to access your portfolio
Fast Company
10-07-2025
- Business
- Fast Company
Good business under pressure: Why quality must always matter
Economic uncertainty is nothing new, but for manufacturers, the stakes are amplified by the sheer complexity of producing goods, sourcing materials, managing supply chains, and maintaining competitive cost structures. Whether it's tariffs and trade policy, changing regulatory requirements, or new geopolitical tensions, external conditions can shift suddenly, making an already intricate business even harder to navigate. In these moments, organizations often look inward to control what they can. Budgets are scrutinized. Processes are streamlined. Resources are reallocated. But one thing that should never be compromised—no matter the pressure—is quality. When margins are tight and uncertainty looms, the cost of poor quality can be particularly damaging. Quality lapses—such as product defects, process inefficiencies, or material waste—don't just impact production numbers. They can compromise safety, risk non-compliance, erode customer trust, and cause lasting damage to a brand's reputation. In highly regulated sectors like pharmaceuticals, food and beverage, and consumer goods, poor quality can mean more than lost profits—it can mean safety violations, recalls, or even threats to public health. When businesses respond to external stress by cutting corners, the hidden costs compound quickly. QUALITY IS A SHARED RESPONSIBILITY Manufacturing companies that take quality seriously know it's not the responsibility of a single team. While quality assurance (QA) and quality control (QC) are essential functions, real operational excellence is achieved when quality becomes part of the organizational DNA. Everyone—from IT and engineering to operations, procurement, and frontline supervisors—has a role to play in maintaining and improving quality. Problems don't always originate where they're detected. The right quality mindset enables companies to trace issues to their root causes and solve them systemically. But a shared commitment to quality doesn't happen automatically. It requires leadership to create a culture of continuous improvement—one that rewards attention to detail, values learning, and ensures teams have the right tools and processes to prevent problems before they escalate. BUILD STRATEGY AROUND OUTCOMES A common pitfall in quality management is letting tools drive the strategy, rather than defining business outcomes first. With so many models and technologies available—statistical process control, digital quality management systems (QMS), MES-integrated quality workflows—it's easy to become enamored with capabilities before clarifying what you're trying to achieve. Instead, manufacturers should first define their desired outcomes. Are you trying to reduce rework? Improve yield? Ensure regulatory compliance? Reduce material waste? Improve customer satisfaction? When goals are clearly articulated, it becomes easier to evaluate which tools and approaches will best support those goals. It also keeps organizations grounded in practical value, minimizing the risk of implementing overly complex or poorly adopted systems that solve the wrong problem. PROCESSES FIRST, THEN TOOLS Technology plays a critical role in modern quality management, but it's only as effective as the processes and expectations around it. Without clearly defined workflows and accountability structures, even the most advanced quality system will fall short. The goal should be to combine strong processes with enabling technologies—such as real-time monitoring, integrated traceability, and exception-based alerts—so that teams can detect and correct quality issues before they result in downstream impact. Technology should augment human decision-making, not replace it. For example, visual inspections on the shop floor can be enhanced with automated data capture, predictive alerts, and trend analysis. When teams have better context, they make better decisions. But that requires both the data and the discipline to act on it consistently. CONSISTENCY BUILDS CONFIDENCE When quality is well managed, the benefits are tangible. Manufacturing becomes more predictable. Resources are used more effectively. Operators and engineers gain confidence in their systems, reducing stress and improving morale. That confidence extends to customers as well. In competitive markets, reputation matters, and consistent quality is one of the clearest signals of operational excellence. Conversely, when products fail to meet expectations, trust erodes quickly. The right quality program also improves resilience. Manufacturers can't control macroeconomic or geopolitical disruptions, but they can ensure that the parts of the business they do control—like execution, output, and compliance—are operating at their best. CONTINUOUS, NOT STATIC Too often, quality management is treated as a compliance box to check or a one-time project. But like safety and innovation, quality must be continuously pursued. Processes should be evaluated regularly. KPIs should evolve with the business. Teams should be encouraged to identify inefficiencies and share solutions. Manufacturers that do this well don't see quality as a defensive measure—they see it as a competitive differentiator. It enables them to scale efficiently, launch products faster, and reduce total cost of ownership across their operations. The manufacturing world will always face external pressure—from new regulations to cost fluctuations to customer demands. But quality is one of the few levers leaders can fully control. Investing in quality, even under pressure, is not about perfection; it's about preparedness. It's a mindset that says: 'No matter what happens around us, we will not compromise on what we can do best.'
Wall Street Journal
04-07-2025
- Business
- Wall Street Journal
German Factory Orders Sink as Uncertainty Weighs
Demand for German manufactured goods dropped in May, reflecting continued economic uncertainty, though foreign orders held up, suggesting U.S. firms continue to stockpile goods amid concerns over future U.S. tariff policies. Factory orders fell 1.4% on month, Germany's statistics agency Destatis said Friday, almost offsetting the rise of 1.6% in April that was prompted by tariff front-running. May's level was weaker than expectations of a 0.2% decrease from a consensus of economists polled by The Wall Street Journal.
