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Global markets dive as the US ratchets up tensions with China over the coronavirus – Business Insider

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  • Stocks fell across the board on Monday after the US ramped up tensions with China and continued to blame the origin of the coronavirus on a lab in the city of Wuhan.
  • Although markets were closed in China and Japan Monday, stocks in Hong Kong plunged, aided by news that the territory’s economy shrank by almost 9% in the first quarter of the year.
  • European stocks also dropped, with the pan-European Stoxx 50 losing 3.5% by early morning US time.
  • “If Trump continues with this stance of blaming China and remains determined to punish Beijing for this — as per his recent narrative— a “Mayday” type of situation could be the likely outcome for the global economy,” one analyst said.
  • Follow global market moves live with Markets Insider.

Stocks fell on Monday as tensions between the US and China ratcheted back up after senior Trump administration officials claiming that the coronavirus pandemic originated in a lab in Wuhan, and the president sent numerous anti-China tweets.

Asian markets fell first, with Hong Kong’s Hang Seng index down more than 4% at the close Monday.

European stocks followed suit, having opened higher but fell in the early hours of trading, with major indexes dropping as much as 4.5% in early trade. Most continental European markets were shut last week on Friday to celebrate Labor Day.

The negative sentiment comes as the US increasingly looks to place the burden of blame for the spread of the coronavirus on China, with one analyst noting that President Trump is likely to “beat on the Chinese as hard as he can without actually going to war.”

Here’s the market roundup as of 12.55 p.m. BST (7.55 a.m. ET):

  • Several Asian indexes fell sharply, with Hong Kong’s Hang Seng down 4%, South Korea’s KOSPI down 2.7%. Chinese stock markets remained closed, as did the Nikkei in Japan. Hong Kong’s economy shrank by almost 9% in the first quarter of 2020, compounding losses for the Hang Seng.
  • European equities broadly fell. Germany’s DAX was down 3.4%, the broad Euro Stoxx 50 down 3.5% and France’s CAC 40 down 3.8%. Britain’s FTSE 100 was relatively strong comparatively, down just 0.1%.
  • US stocks are poised for a lower open. Futures underlying the Dow Jones Industrial Average fell 0.9%, the S&P 500 fell 0.6% and the Nasdaq fell 0.5%, rallying from losses of more than 1% earlier in the day.
  • Oil prices fell with West Texas Intermediate down 2.7% at $19.27, and Brent crude down 0.6% at $26.27. WTI had been down 7% earlier in the day.
  • Gold rose 0.9% to $1,717 per ounce.
  • Bitcoin fell about 4% to roughly $8,685. 

US-China tensions ramp up

Markets fell after US Secretary of State Mike Pompeo said told ABC on Sunday “there is enormous evidence” that the coronavirus pandemic originated in a lab in the city of Wuhan.

“We said from the very beginning this is a virus that originated from Wuhan China. We took a lot of grief for that from the outset but I think the whole world can see that now,” Pompeo said.

Pompeo’s allegations were the latest in a series of anti-China statements from White House officials, as the administration looks to apportion blame for the pandemic.

Reuters reported on Monday the Trump administration is looking to remove global supply chains from China as it weighs the possibility of imposing fresh tariffs on China to penalize the country for its handling of the pandemic. 

Analysts were quick to note the impact the tensions are having on global markets. 

Naeem Aslam, chief market analyst at Avatrade, said: “If Trump continues with this stance of blaming China and remains determined to punish Beijing for this — as per his recent narrative— a “Mayday” type of situation could be the likely outcome for the global economy.”

Read more: GOLDMAN SACHS: Buy these 13 stocks primed to keep delivering powerful dividends as their peers are forced to slash payouts. 

Neil Wilson, market analyst at Markets.com, said: “Whilst monetary and fiscal stimulus sustained a strong rally through April – the best monthly gain for Wall Street since 1987 – it’s harder to see how it can continue to spur gains for equity markets.”

Wilson added: “This is an election year so I’d expect Trump to beat on the Chinese as hard as he can without actually going to war. Trade Wars 2.0 will be worse than the original.”

But Aslam thinks the possibility of having a vaccine by the end of the year could offset any market impact from US-China tensions. 

“If the possibility of having a vaccine became a reality by the end of this year, it would surely support market optimism.”

Gilead’s experimental antiviral called remdesivir was approved for emergency use in the US on Friday, after a trial showed patients on the drug recovered 31% faster compared to patients who were put on a placebo. 

“This is because it reduces the chances of a second-coronavirus wave having the same detrimental impact on the global economy as the first one,” Aslam said.

Analysts point to a rise in gold prices

Reuters / Pascal Lauener

Aslam said ongoing tensions could increase the demand for gold, another safe-haven asset. 

“The safe-haven bet, buying gold, is back in demand and the price of the shining metal is trading higher today. Given the fact that tensions have resurfaced between the US and China, investors are likely to play safe and include gold in their portfolios.”

He added: “Fear of trade war usually pushes investors towards safety bets and gold sits at the top of this ladder. No one wants to see a hostile situation surging but the US officials are on course to play with fire.”

Losses were also seen in both the US and international oil markets, after they had recovered last week following days of volatility. 

Read more: Warren Buffett discussed bailouts, coronavirus, and selling airline stocks at Berkshire Hathaway’s annual meeting. Here are the highlights.

After dropping into negative territory two weeks ago, oil has remained volatile, although prices have risen in recent days. Concerns, however, are mounting that the June oil contract could turn negative the closer it moves to expiration. 

Aslam said: “Investors are concerned about the storage issues despite the fact that we have seen some serious voluntary production cut by the US Shale oil producers over the last week. The possibility of an intense sell-off of West Texas Crude remains a possibility.”

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What Difference Will You Make to an Employer?

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18 hours ago

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October 21, 2024

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It’s common knowledge that companies don’t hire the most qualified candidates. Employers hire the person they believe will deliver the best value in exchange for their payroll cost.

Since most job seekers know the above, I’m surprised that so few mention their Employee Value Proposition (EVP). Most job seekers list their education, skills, and experience without substantiating them and expect employers to determine whether they can benefit their company; hence, most resumes and LinkedIn profiles are just a list of opinions—borderline platitudes—that are meaningless and, therefore, have no value. Job seekers need to better explain, along with providing evidence, how they’ll contribute to an employer’s success.

Employers don’t hire opinions (read: talk is cheap); they hire results.

You’re not offering anything tangible when you claim:

 

  • I’m a great communicator.
  • I’m detail oriented.
  • I’m a team player.

 

Tangible:

 

  • “At Global Dynamics, I held quarterly town hall meetings with my 22 sales reps, highlighting our accomplishments, identifying opportunity areas, and recognizing outstanding performers.”
  • “For eight years, I managed Vandelay Industries IT department, overseeing a staff of 18 and a 12-million-dollar budget while coordinating cross-specialty projects. My strong attention to detail is why I never exceeded budget.”
  • “While working at Cyberdyne Systems, I was part of the customer service team, consisting of nine of us, striving to improve our response time. Through collaboration and sharing of best practices, we reduced our average response time from 48 to 12 business hours, resulting in a 35% improvement in customer feedback ratings.”

 

These examples of tangible answers provide employers with what they most want to hear from candidates but rarely do; what value the candidate will bring to the company. Typically, job seekers present their skills, experience, and unsubstantiated opinions and expect recruiters and employers to figure out their value, which is a lazy practice.

Getting hired isn’t based on “I have an MBA in Marketing and Sales,” “I’ve been a web designer for over 15 years,” “I’m young, beautiful and energetic,” blah, blah, blah. Likewise, being rejected isn’t based on “I’m overqualified,” “I’m too old,” “I don’t have enough education,” blah, blah, blah. Getting hired depends entirely on showing employers that you can add value and substance to their company; that you’ll serve a purpose.

When you articulate a solid value offer, the “blah, blah, blah” doesn’t matter. Job seekers focus too much on the “blah, blah, blah,” and when not hired, they say, “It’s not me, it’s…” The biggest mistake I see job seekers make is focusing on the “blah, blah, blah”—their experience and education—believing this is what interests employers. Hiring managers are more interested in whether you can solve the problems the position exists to solve than in your education and experience.

 

Not impressive: Education

Impressive: A track record of achieving tangible results.

 

You aren’t who you say you are; you are what you do.

 

If you want to be somebody who works hard, you have to actually work hard. If you want to be somebody who goes to the gym, you actually have to go to the gym. If you want to be a good friend, spouse, or colleague, you have to actually be a good friend, spouse, or colleague. Actions build reputations, not words.

The biggest challenge job seekers face today is differentiating themselves. To stand out and be memorable, don’t be like most job seekers, someone who’s all talk and no action. Any recruiter or hiring manager will tell you that the job market is heavily populated with job seekers who talk themselves up, talk a “good game” about everything they can “supposedly” do, drop names, etc., but have nothing to show for it.

More than ever, employers want to hear candidates offer a value proposition summarizing what value they bring. If you’re looking for a low-hanging fruit method to differentiate yourself, do what job seekers hardly ever do and make a hard-to-ignore value proposition.

  1. Increase sales: “Based on my experience managing Regina and Saskatoon for PharmaKorp, I’m confident that I can increase BioGen’s sales by no less than 25% in Winnipeg and the surrounding area by the end of 2025.”
  2. Reduce cost: “During my 12 years as Taco Town’s head of purchasing, I renegotiated contracts with key suppliers, resulting in 15% cost savings, saving the company over $450,000 annually. I know I can do the same for The Pasta House.”
  3. Increase customer satisfaction:“During my time at Globex Corporation, I established a systematic feedback mechanism that enabled customers to share their experiences. This led to targeted improvements, increasing our Net Promoter Score by 15 points. I can increase Dunder Mifflin’s net promoter score.”
  4. Save time: “As Zap Delivery’s dispatcher, I implemented advanced routing software that analyzed traffic patterns, reducing average delivery times by 20%. My implementation of this software at Froggy’s Delivery can reduce your delivery times by at least 20%, if not more.”

 

If you want to achieve job search success as soon as possible, structure your job search with a single thread that’s evident and consistent throughout your résumé, LinkedIn profile, cover letters and especially during interviews; clearly convey what difference you’ll make to the employer.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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5 days ago

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October 17, 2024

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store

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