(Bloomberg) — European Union governments signaled support on Monday for completing work on a long-sought agreement with China to open the Chinese market further to EU investors, bringing closer a major economic and political victory for both sides.
EU member-country envoys urged the European Commission, the bloc’s executive arm, to complete negotiations with the Chinese government within days, according to a European official who spoke on condition of anonymity because the deliberations in Brussels were confidential. Another official said the commission could announce a draft deal imminently.
A successful conclusion of talks that began in 2013 on an EU-China investment accord would be a salvo against the “America First” challenge to the multilateral order by outgoing U.S. President Donald Trump.
For the EU, the deal would expand access to the Chinese market for foreign investors in industries ranging from cars to biotechnology. Furthermore, the pact would tackle underlying Chinese policies deemed by Europe and the U.S. to be market-distorting: industrial subsidies, state control of enterprises and forced technology transfers.
For China, the agreement promises to bolster the country’s claim to be a mainstream geopolitical force and may limit risks resulting from a tougher EU stance on Chinese investments in Europe. It also would strengthen Beijing’s longstanding call for the start of negotiations on a free-trade accord with the EU, which has insisted such a move depended on an investment deal being reached first.
The expected achievement highlights global cross currents after Trump shook the post-war system over the past four years by sidelining the World Trade Organization, starting a tariff war against China and hitting or threatening U.S. allies in Europe with controversial import duties.
EU-China relations themselves have been strained this year. A recent Chinese law curbing Hong Kong’s autonomy has sparked sharp criticism across Europe, while the EU has accused Beijing of spreading disinformation about the coronavirus and targeted China-based operators with the bloc’s first-ever sanctions over cyber attacks.
And while the EU and China pledged in April 2019 to strike an investment accord by the end of 2020, the European side spent recent months downplaying the prospect of a deal this year on the ground the Chinese government needed to make more concessions.
Through all the ups and downs, the EU has criticized Trump’s confrontational tactics toward China and urged western engagement with Beijing on everything from fighting climate change to overcoming the pandemic.
The bloc helped prod the Chinese government three months ago to commit to a more ambitious climate-protection goal and, when it came to the investment-pact talks, the EU ended up saying significant progress was made across the board.
The planned deal also signals the EU’s determination to assert itself and focus on economic opportunities in Asia even while reaching out to U.S. President-elect Joe Biden to revive transatlantic cooperation. China ranked as the EU’s second-largest trading partner last year (behind the U.S.), with two-way goods commerce valued at more than 1 billion euros ($1.2 billion) a day.
The final parts of the investment accord have been put into place in recent weeks in the shadow of higher-profile EU negotiations with the U.K. on a post-Brexit trade agreement and of a hard-fought deal among member countries on a new European budget and pandemic-recovery fund.
While the Brussels-based commission has negotiated the investment pact for the EU, the imminent breakthrough marks another result for Germany during the country’s six-month presidency of the bloc ending Dec. 31. Berlin has long championed the goal, stressing the importance of more balanced and deeper European economic ties to China.
©2020 Bloomberg L.P.
Ark Investment Management's Top 10 Takeover – CMC Markets
The ARK Innovation ETF [ARKK] recently pushed Catherine Wood’s Ark Investment Management into the top 10 issuers of exchange-traded funds (ETFs) worldwide, following a rapid increase in the share price of its largest holding, Tesla Inc [TSLA]. The investment firm, which runs six other ETFs besides ARKK (with a new, space-focused fund on the way), dislodged WisdomTree [WETF] in the top 10 list.
The Innovation ETF is comprised of companies in the “disruptive innovation” space, encompassing fields such as genomics, industrials, next-gen internet and fintech. Ark’s other funds specialise in specific sectors.
In the 12 months to Friday 22 January, the flagship fund’s price had grown 175.7% from $54.09, with most growth occurring in the last six months. On 22 July 2020, the fund closed at $81.23, a 53.3% increase above its price six months prior, and closed 22 January another 79.8% higher at $146.08. In the opening weeks of 2021, the fund has gained 13.75% (as of 26 January’s close).
The price rise of the ARK Innovation ETF over the past 12 months
In displacing WisdomTree, Ark Investment Management went from a relatively minor investment firm with less than $3.5bn in assets to managing $41.5bn in ETF products. The Ark Innovation ETF makes up the bulk of Ark’s assets, worth $21.4bn at the time of Bloomberg’s 11 January report, which also states the ETF received cash inflows of almost $10bn in 2020
As of 26 January, the fund’s largest holding is Tesla, accounting for 9.76% of the fund. Tesla has driven much of the fund’s recent increase in value, with the electric vehicle company’s stock rising 21.01% year-to-date, and more than doubling in the last three months (as of 26 January’s close). Tesla closed at a record-breaking $883.09 on 26 January, having reached an intraday all-time high of $900.40. Even if the stock starts to settle, this represents a massive 691.30% increase from this time a year ago, when Tesla’s stock traded at just over $110.
Tesla’s holding in the ARK Innovation ETF as of 26 January
Tesla is not the only stock that has driven the ARKK’s recent performance, however. Roku [ROKU] is the fund’s next largest holding at 7.21% of the fund and currently trades at $403.40, having gained 219.63% over the last year (as of 26 January’s close). Gains of 26.9% in 2021 so far suggest Roku is currently growing faster than Tesla. A strong earnings report revealing the streaming hardware service’s 14 million new users in 2020 saw Laura Martin, analyst with Needham, upgrade her price target to $400, a milestone the stock passed within days.
WisdomTree’s (relative) decline appears to be due, at least in part, to its focus on slower-growth assets. Its largest fund, the WisdomTree US Quality Dividend Growth Fund [DGRW], grew just over 10% in 2020 — underperforming the S&P 500 over the period. DGRW tracks “dividend quality growth companies” screened for “return on equity, return on assets and expected earnings growth”. It is perhaps unsurprising that the fund underperformed the markets in a year defined by upheaval, disruption and speculation, then.
Bullish opinions abound regarding ARKK’s key stocks. David R Baker, a writer for Bloomberg, reports that electric vehicles could cost the same as internal combustion engine-powered cars within five years and cheapen from there. Wood, Ark’s founder and CIO, explained in a recent note that the company expects electric vehicle sales to increase twentyfold in that time. Given increasing demand for sustainable vehicles in China, Dan Ives, analyst at Wedbush Securities, recently raised his price target for Tesla to $950, predicting the stock could reach $1,250 in a bull-case scenario.
Roku has a compelling case for continued growth as advertising looks set to increase by between 12% and 15% in 2021. Advertising generates Roku an 80% profit margin and, given the encouraging user numbers announced recently, the company already holds more appeal for advertisers in 2021 than it did in 2020.
“…expecting the same type of performance we saw in 2020 moving forward is unrealistic” – Nathan Geraci, president of The ETF Store
However, the analyst community collectively doubts that ARKK can continue to grow, especially given forecasts suggesting that Tesla is overpriced (Dan Ives’ prediction aside). Median and low 12-month targets of $512.50 and $40 from CNN Money’s 34-analyst panel would see the stock losing 42% and 95.5%, respectively over the coming year. CNN Money’s polled analysts similarly expect Roku to lose money over the period, with the median target of $300 representing a fall of 25.6% from 26 January’s closing price.
With Ark displacing WisdomTree in the top 10 ETF issuers worldwide, thanks to the former’s focus on growth stocks in the turbulent conditions of 2020, a recovery from the coronavirus pandemic and return to “normal” conditions could spell bad news for the company. Nathan Geraci, president of The ETF Store, told Bloomberg that “expecting the same type of performance we saw in 2020 moving forward is unrealistic”.
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
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Clarity Capital, Israel's Premier Investment Management Firm, Launches Israeli Backup Investment Accounts for American and Canadian Citizens – PRNewswire
NEW YORK, Jan. 26, 2021 /PRNewswire/ — To meet the growing demand for Israeli backup bank accounts, Clarity Capital launched Israeli Backup Investment Accounts (IBIA) for American and Canadian citizens. These accounts are intended to help individuals and families set aside money to deal with risks such as a need or desire to leave the United States or Canada.
In fact, a survey conducted by the Anti-Defamation League (ADL) recently revealed that 63 percent of American Jews feel their communities are less safe than they were a decade ago.
To provide these citizens with peace of mind, knowing their money is safe and adhering to international tax reporting standards and more, Clarity Capital is providing the United States and Canadian citizens with an opportunity to hold a securities account in Israel.
“It’s unfortunate, but we’ve seen an increase in calls from Jewish Americans who are interested in opening a bank account in Israel for security purposes,” said Amir Leybovitch, Chief Executive Officer of Clarity Capital. “Through IBIA, and as an ISA and SEC-registered firm, we are able to provide our clients with the opportunity to safely open a backup account as part of their wealth risk management strategy.”
Since 2006, Clarity Capital, a global investment firm with offices in Tel Aviv and New York has been providing wealth and investment management services to institutional and individual investors worldwide including high-net-worth individuals, families, endowments, foundations, and institutions.
When a client opens an IBIA facilitated by Clarity Capital, they will have access to a myriad of benefits, including:
- The option to open private, corporate, and trust accounts
- Removal of double taxation due to the Taxation Treaty
- Monthly reports about the health of the account
- Remote set-up of accounts
- Choice of active- or passive-managed accounts
- Minimal fees associated with passive accounts (in addition to reduced bank fees)
All these benefits and more are meant to provide American and Canadian citizens with the opportunity to protect their funds and their families by opening an account in Israel in the event of an emergency.
Contact the team at Clarity Capital to help you reach your financial objectives.
About Clarity Capital
Clarity Capital is a global investment management firm with offices in Tel Aviv and New York, providing wealth and investment management services to institutional and individual investors worldwide, including high-net-worth individuals, families, endowments, foundations, and institutions, since 2006. Clarity offers a wide range of services and products which include Private Wealth Management, Family Office Services, Hedge Fund, and Private Debt opportunities, Socially Responsible Investing, and Institutional Fund Distribution. Our team is led by financial professionals with decades of worldwide experience in protecting and growing clients’ assets. Clarity Capital is registered with the U.S. Securities and Exchange Commission (SEC), the Israel Securities Authority (ISA), the Canadian Autorité des Marchés Financiers of Québec (AMF), and the Canadian Ontario Securities Commission (OSC).
Website – www.claritycap.com
Clarity Capital North America Headquarters 712 Fifth Avenue, New York, NY 10019, United States, 34th Floor [email protected]; +1 646 448 5200
Investment inquiries – [email protected]
Partnership inquiries – [email protected]
Press and media inquiries – [email protected]
SOURCE Clarity Capital
Province announces approx. $1.9M investment in local townships – KitchenerToday.com
A funding boost to our local townships announced by the provincial government today, as MPP for Kitchener-Conestoga Mike Harris Jr. announced almost $1.9 million dollars in investments for infrastructure projects in the townships of Wellesley, Wilmot and Woolwich. Those funds made available through the Ontario Community Infrastructure Fund (OCIF) are said to come through the province’s continuing effort to support municipalities “as they build and repair roads, bridges, water and wastewater infrastructure.”
In a release, MPP Harris Jr. said the funding will help local municipalities in moving forward with their infrastructure priorities and asset management planning needs in 2021. Of the nearly $1.9M investment, Wellesley will receive $518,917, Wilmot will be receiving $728,765 and $630,843 will go to Woolwich.
“This is part of my commitment to support our local municipalities and make our community the best place to live and grow.” said Harris.
Part of a larger investment effort, the funds come as part of the province’s approximately $200 million commitment to 424 communities to help address core infrastructure products and other planning needs this year. Also commenting on the province-wide effort was the Minister of Infrastructure Laurie Scott, who said the investment in infrastructure projects has the government “strengthening and building communities.”
“This is part of our ongoing commitment to support small, rural and northern municipalities across Ontario, providing stable funding needed to build long-term economic resilience.”
Funding through the Ontario Community Infrastructure Fund provides stable and predictable funding for rural and northern communities with populations under 100,000. The province also provides funding to communities through the Canada Infrastructure Program – a $30-billion, 10-year program shared between federal, provincial and municipal governments.
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