Microsoft has better fundamentals, but buy Apple, says tech investor

Microsoft has better fundamentals, but buy Apple, says Heartland Financial CIO

Microsoft has better fundamentals, but buy Apple, says Heartland Financial CIO   11 Hours Ago | 02:58

Microsoft may have replaced Apple as the most valuable U.S. company, but don’t count Apple out, investor Nancy Tengler told CNBC on Friday.

“Clearly the fundamentals are better for Microsoft in terms of which space they’re in — the cloud space, the growth they’re experiencing — but I’m not willing to walk away from Apple at these levels,” the chief investment officer at Heartland Financial said on “Closing Bell.”

Microsoft’s market cap held an implied market valuation of $851.2 billion at Friday’s close, exceeding Apple’s market valuation of $847.4 billion.

Tim Cook, chief executive office of Apple Inc., speaks during an event at Lane Technical College Prep High School in Chicago, Illinois, U.S., on Tuesday, March 27, 2018. Apple is making announcements in a bid to win back students and teachers from Google and Microsoft Corp. 

Christopher Dilts | Bloomberg | Getty Images
Tim Cook, chief executive office of Apple Inc., speaks during an event at Lane Technical College Prep High School in Chicago, Illinois, U.S., on Tuesday, March 27, 2018. Apple is making announcements in a bid to win back students and teachers from Google and Microsoft Corp.

Tengler, who owns shares of both Apple and Microsoft, said she’s closer to selling Microsoft and buying Apple right now. “This is an interesting time to be adding.”

“We have to get used to the recalibration of iPhone flat sales, no transparency, what’s the next big thing,” she said. “We’re going to find it’s services and something we haven’t thought of yet. Look at the Apple Watch, it’s just kind of been a stealth outperformer.”

Apple shares have had a few rough weeks, releasing disappointing earnings on Nov. 1. The tech giant also announced it would no longer break out iPhone, iPad and Mac sales figures, which garnered a swift response from Wall Street.

However, Tengler dismissed analysts’ concerns.

“Wall Street gets embarrassed. They’re like a woman scorned. When they don’t get the information they want, then they begin to pile on,” she said.

She is betting that Apple will make the successful transition to the next big thing and will bring the Street along. It just may take some time, she added.

[“source=cnbc”]

Climate change will cost economy hundreds of billions of dollars, government says in sweeping report

Bob Richling carries Iris Darden as water from the Little River starts to seep into her home on September 17, 2018 in Spring Lake, North Carolina. 

Bob Richling carries Iris Darden as water from the Little River starts to seep into her home on September 17, 2018 in Spring Lake, North Carolina.

Climate change will cost the U.S. economy hundreds of billions of dollars by the end of the century, damaging everything from human health to infrastructure and agricultural production, according to a government report issued on Friday.

The White House dismissed the congressionally mandated reported as inaccurate.

The report, written with the help of more than a dozen U.S. government agencies and departments, outlined the projected impact of global warming in every corner of American society, in a dire warning that is at odds with the Trump administration’s pro-fossil-fuels agenda.

“With continued growth in emissions at historic rates, annual losses in some economic sectors are projected to reach hundreds of billions of dollars by the end of the century – more than the current gross domestic product (GDP) of many U.S. states,” the report, the Fourth National Climate Assessment Volume II, said.

Global warming would disproportionately hurt the poor, broadly undermine human health, damage infrastructure, limit the availability of water, alter coastlines, and boost costs in industries from farming, to fisheries and energy production, the report said.

[“source=cnbc”]

ADNOC CEO says oil and gas industry a critical enabler of economic growth in 4th industrial age in ADIPEC keynote address

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Abu Dhabi — The global oil and gas will be a critical enabler of economic growth in the 4th Industrial Age, according to His Excellency Dr. Sultan Ahmed Al Jaber, UAE minister of state and group CEO of the Abu Dhabi National Oil Company (ADNOC).

Delivering the opening keynote address, today, at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), one of the world’s leading oil and gas conferences and exhibitions, H.E. Dr. Al Jaber said the world is on the verge of an era of unprecedented prosperity. This will be driven, he said, by rapid advances in technology and a global middle class, which will grow to five billion people by 2030, creating greater demand for energy and products derived from oil and gas.

“We are at the cusp of a new age of opportunity for our industry, an era in which digital innovation is delivering unprecedented levels of progress,” H.E. Dr. Al Jaber told the audience of government ministers, industry CEOs, policymakers and decision makers. “This era, known as the 4th Industrial Age, is creating a paradigm shift in global growth and driving demand for our products. Our industry must step up to enable this massive step-change in global development.

“In short,” H.E. Dr. Al Jaber added, “this mission can be given a simple name: Oil and Gas 4.0.”

H.E. Dr. Al Jaber said ADNOC recognizes that to fulfill the mission of Oil and Gas 4.0, it must leverage all its resources, its partnerships and, in particular, the latest technologies, if it is to continue to thrive and deliver on the ambitious strategic objectives of its 2030 smart growth strategy.

“All this is only the start of a new era at ADNOC,” he said, adding that ADNOC is continuing to put in place the building blocks that would allow it to seize the opportunities created by Oil and Gas 4.0, emphasizing the strategic oil and gas announcements, made recently by Abu Dhabi’s Supreme Petroleum Council (SPC), which will see ADNOC increase its oil production capacity to 4 MMbpd by 2020 – and to 5 MMbpd by 2030 – to meet growing global demand. In addition, ADNOC will develop its vast untapped gas resources.

“As we set out to meet these ambitious goals, we will access our undeveloped reservoirs, tap into our gas caps and further capitalize on our sour gas. Today, we are able to make this happen by thinking outside the box, leveraging technology and reframing our business model. This has finally unlocked the commercial formula that will enable the UAE to attain self-sufficiency and transition to becoming a potential net exporter of natural gas.” H.E. Dr. Al Jaber said. “We are also taking steps, never taken before, to realize our comprehensive gas strategy.

“For the first time, we will jointly develop our unconventional fields in a concession partnership with Total. In addition, our strategy will ensure we remain a reliable supplier of LNG well into the future.”

H.E. Dr. Sultan added, “While advances in technology are impacting every industry, it is time for us to focus our attention on how it can advance our industry,” H.E. Dr. Al Jaber said.  “At ADNOC, we believe technology can enhance our operational efficiency, drive performance, maximize profitability and empower our people.”

ADNOC, he said, is applying artificial intelligence and the science of predictive analytics to significantly reduce maintenance costs and building out its state-of-the-art Panorama Digital Command Center to mine for, monitor and measure terabytes of information across its operations. And yet, ADNOC is only scratching the surface of how technology can transform its potential, he declared.

“Our ambition is to extend technology’s power across our entire value chain from drilling platforms to trading platforms,” H.E. Dr. Al Jaber said. “By embedding innovation into every aspect of our business, we are determined to make ADNOC the destination of choice for a highly skilled, digitally native workforce and a home for the best and the brightest of our young people.”

H.E. Dr. Al Jaber also emphasized the importance of ADNOC’s downstream expansion. “This expansion capitalizes on our high-grade feedstock, proximity to growth markets and best-in-class logistics to create an integrated plug and play ecosystem, an ecosystem where I invite partners to invest and grow alongside ADNOC as we continue on our journey to diversify the UAE’s economy, enable in-country value and support GDP growth,” he said.

Following H.E Dr. Sultan Al Jaber’s speech, a special ministerial panel discussion took place – entitled, ‘Reshaping Markets: Continuing the Global Energy Discussion, with the participation of H.E. Suhail Al Mazrouie, minister of energy, United Arab Emirates; H.E. Khalid Al Falih, minister of energy, industry and mineral resources, Kingdom of Saudi Arabia; and H.E. Mohammad Barkindo, secretary general of the Organization of Petroleum Exporting Countries (OPEC).

Hosting more than 80 ministers, CEOs, and global oil and gas business leaders as speakers, ADIPEC has convened the companies, decision- and policy-makers who shape the future of oil and gas supply, for four days of focused business, dialogue and knowledge-transfer that addresses today’s energy challenges and defines tomorrow’s hydrocarbon landscape.

ADIPEC’s international technical and strategic conference spans 200 sessions, with 980 expert speakers and over 10,400 delegates. The technical conference program, organized in collaboration with the Society of Petroleum Engineers (SPE), sets the international standard for the exchange of best-practice and operational excellence in the world of energy, with all technical abstract submissions put through a rigorous evaluation process by the technical program committee. Sessions cover upstream, midstream and downstream sectors, including specialized program such as offshore and marine.

Alongside the conference are the landmark ADIPEC exhibition areas, underpinning the event’s status as a premier showcase for suppliers and customers across the oil and gas industry. For 2018, ADIPEC has attracted more than 2,200 exhibiting companies, including 38 National Oil Companies and International Oil Companies, and 30 international country pavilions.

[“source=cnbc”]

Titan growing faster than industry each quarter, says CFO Subramaniam

Image result for Titan growing faster than industry each quarter, says CFO Subramaniam

Watches and accessories maker Titan Co reported an 8.34 percent growth in consolidated profit during the July-September quarter. Subbu Subramaniam, CFO of Titan, spoke to CNBC-TV18 about the earnings growth and the company’s business plans going forward.

“The company is growing faster than the industry each quarter,” said Subramaniam.

“The company is now seeing the benefits of ad spends on jewellery in the third quarter,” said Subramaniam, adding that going forward in the second half, the ad spends would be lower. “It was part of the plan to incur higher ad spends in the first half and therefore expected margins to be lower,” he said.

In terms of sales, Subramaniam said, “The company had a very good run up to Diwali, saw 27 percent growth and the retail-end in the first 29 days upto Diwali. Therefore, market share gains continue.”

With regards to the watch business, he said,” The company would spend more on ads in the second half and so expect the EBIT for that business to be in between 15-16 percent for FY19. For the second half, the EBIT margins would be around 12-13 percent in second half because of ad spends.”

“Eyeware is small part of the overall business but it saw a good growth in October. The focus here is more on growing topline, increase network rather than look at profitability,” said Subramaniam.
With regards to IL&FS exposure, he said, “It would be difficult to predict additional provisioning that would be needed. The company has exposure to IL&FS inter-corporate deposits worth Rs 145 crore.”

[“source=cnbc”]

China says exports to US rising ‘because American economy is strong and they want to buy our products’

China’s exports to the United States are still growing, thanks to a strong American economy and consumers’ preference for Chinese products, China’s ministry of commerce said on Monday.

The delivery of previously placed orders and “front-loading” by Chinese shippers also contributed to a robust performance so far this year, the ministry concluded in a report reviewing and forecasting China’s trade performance.

As such, the impact of the US trade war on China’s trade and broad economy will be “limited” with “total risks under control”, the ministry concluded in the report.

“The United States unilaterally provoked economic and trade friction, which not only affects Sino-US trade but has also brought significant uncertainties to the development of global trade and investment,” the ministry said.

China’s exports to the US rose 13.3 per cent in the first 10 months compared with a year earlier while its imports from the US increased by 8.5 per cent in the same period, according to China customs data. In October alone, Chinese exports to the US rose by 13.2 per cent while its imports from the US fell 1.8 per cent, earning Beijing a trade surplus of US$32 billion last month.

According to Beijing’s commerce ministry, strong demand for imported products in the US – the result of low unemployment, robust growth and good consumer confidence – is a fundamental factor helping China to sell to the US despite tariffs imposed by US President Donald Trump.

In addition, the industrial chains of China and the US are “closely integrated” and the two countries’ economic structures are “highly complementary”, the ministry added.

The US imposed 10 per cent tariffs on US$200 billion worth of Chinese products in late September – a rate set to rise to 25 per cent in January if Beijing does not make concessions.

The measures followed an initial round of tariffs on US$50 billion worth of products.

China has responded in a tit-for-tat manner by imposing tariffs on US imports.

While China’s export data looks solid for now, many economists said the impact of the trade war would start showing up in the first or second quarter of next year, adding to the woes of an economy that is already growing at its slowest pace in a decade.

China’s trade ministry also said that the country “faces both severe challenges and presents new development potential” next year and that the ministry would work hard to ensure a “steady” trade situation.

President Xi Jinping is set to meet Trump at the G20 leaders summit in Argentina next month in the hope of easing trade tensions.

Speaking at China’s first imports expo in Shanghai last week, Xi said China would buy more goods and services from abroad, saying the country’s purchases of foreign goods would be worth US$30 trillion over the next 15 years.

Xi also announced the country would buy US$10 trillion worth of foreign services in the same period.

Analysts expect the trade war will see China importing more from other countries as it reduces tariffs. However, China’s growth is likely to slow further in the coming months as the trade war takes its toll.

In response – amid signals that policymakers are increasingly nervous about the outlook –, the government has launched a series of measures to support the economy, including cutting individual taxes, speeding up infrastructure spending and extending additional financing options to help struggling smaller companies.

China’s exports to the United States are still growing, thanks to a strong American economy and consumers’ preference for Chinese products, China’s ministry of commerce said on Monday.

The delivery of previously placed orders and “front-loading” by Chinese shippers also contributed to a robust performance so far this year, the ministry concluded in a report reviewing and forecasting China’s trade performance.

As such, the impact of the US trade war on China’s trade and broad economy will be “limited” with “total risks under control”, the ministry concluded in the report.

“The United States unilaterally provoked economic and trade friction, which not only affects Sino-US trade but has also brought significant uncertainties to the development of global trade and investment,” the ministry said.

China’s exports to the US rose 13.3 per cent in the first 10 months compared with a year earlier while its imports from the US increased by 8.5 per cent in the same period, according to China customs data. In October alone, Chinese exports to the US rose by 13.2 per cent while its imports from the US fell 1.8 per cent, earning Beijing a trade surplus of US$32 billion last month.

According to Beijing’s commerce ministry, strong demand for imported products in the US – the result of low unemployment, robust growth and good consumer confidence – is a fundamental factor helping China to sell to the US despite tariffs imposed by US President Donald Trump.

In addition, the industrial chains of China and the US are “closely integrated” and the two countries’ economic structures are “highly complementary”, the ministry added.

The US imposed 10 per cent tariffs on US$200 billion worth of Chinese products in late September – a rate set to rise to 25 per cent in January if Beijing does not make concessions.

The measures followed an initial round of tariffs on US$50 billion worth of products.

China has responded in a tit-for-tat manner by imposing tariffs on US imports.

While China’s export data looks solid for now, many economists said the impact of the trade war would start showing up in the first or second quarter of next year, adding to the woes of an economy that is already growing at its slowest pace in a decade.

China’s trade ministry also said that the country “faces both severe challenges and presents new development potential” next year and that the ministry would work hard to ensure a “steady” trade situation.

President Xi Jinping is set to meet Trump at the G20 leaders summit in Argentina next month in the hope of easing trade tensions.

Speaking at China’s first imports expo in Shanghai last week, Xi said China would buy more goods and services from abroad, saying the country’s purchases of foreign goods would be worth US$30 trillion over the next 15 years.

Xi also announced the country would buy US$10 trillion worth of foreign services in the same period.

Analysts expect the trade war will see China importing more from other countries as it reduces tariffs. However, China’s growth is likely to slow further in the coming months as the trade war takes its toll.

In response – amid signals that policymakers are increasingly nervous about the outlook –, the government has launched a series of measures to support the economy, including cutting individual taxes, speeding up infrastructure spending and extending additional financing options to help struggling smaller companies.

[“source=cnbc”]

Prudential already has a large footprint in China — the challenge is to grow that, says its CEO

Jason Alden | Bloomberg via Getty Images

China is committed to opening up its insurance sector just as it’s indicated, but it will be on its own time, said Mike Wells, Prudential Group CEO on Tuesday.

“Beijing is saying they have a plan for greater opening, and I think like everything in China the time frame is misaligned with U.S. time frames,” Wells told CNBC at the Singapore FinTech Festival.

“You’re not going to succeed across Asia if you’re not successful in China,” Wells said.

Prudential, Britain’s largest insurer, has been expanding into China for years. Prudential has a 50-50 joint venture with Chinese conglomerate Citic.

“We have licenses in about 70 percent of the economic footprint now with China, so our biggest challenge is growing into that footprint quickly,” Wells said.

China said this year it would accelerate a plan to lift the foreign ownership restriction in life insurance companies to 51 percent and eventually fully scrap the restriction.

“I think China’s not looking for a flood of foreign models, insurers and management teams in the market but they are saying ‘We want the expertise, the products, the capabilities,'” he said.

Since August, there have been media reports that China’s most valuable insurer Ping An Insurance Group is looking to buy Prudential’s Asian business.

Last month, Prudential’s Asia chief executive, Nic Nicandrou, said the insurer had not received any offer for the regional business.

Asked about the Ping An deal, Wells said he was unable to comment on mergers and acquisitions, but that Prudential now has its hands full spinning off its U.K. business.

“It’s not off the table but … our days are pretty full right now,” Wells said.

[“source=cnbc”]