NEW YORK — Global share markets edged lower globally on Thursday as concerns about investments in China and a mixed day on Wall Street outweighed positive economic data in the United States.
The three major indexes spent much of the day in negative territory as rising U.S. Treasury yields pressured market-leading tech stocks, and the rising dollar weighed on exporters.
International investors who have been piling into China in recent years are now bracing for one of its great falls as the troubles of over-indebted property giant China Evergrande come to a head.
Dwindling resources set against 2 trillion yuan ($305 billion) of liabilities have wiped nearly 80% off the developer’s stock and bond prices, and an $80 million bond coupon payment now looms next week.
Hong Kong’s Hang Seng index dropped to its lowest level so far this year.
A report from the U.S. Commerce Department on Thursday showed retail sales unexpectedly rose in August, indicating America’s economic recovery is strengthening on positive trends in consumer spending.
The strong data sent safe-haven gold down nearly 3%.
However, the U.S. labor market remains under pressure, with initial jobless claims rising by slightly more than expected last week.
“(Retail spending) categories that were strongest in August were in COVID-beneficiary categories,” wrote Ellen Zentner, chief U.S. economist at Morgan Stanley.
“Now incorporating today’s retail sales release, we lift our real (personal consumer expenditures) tracking to +1.9% and GDP to +5.0%.”
The MSCI world equity index was last down by 0.25% , off an all-time high on Sept. 7. MSCI’s broadest index of Asia-Pacific shares outside Japan closed down 0.83%.
European equities bucked the trend, and Europe’s STOXX 600 closed up 0.44%.
The Dow Jones Industrial Average fell 63.07 points, or 0.18%, the S&P 500 lost 6.95 points, or 0.16%, and the Nasdaq Composite added 20.40 points, or 0.13%.
Markets remain focused on next week’s Federal Reserve meeting for clues as to when the U.S. central bank will start to taper stimulus, especially after the flurry of U.S. economic data out this week.
On Tuesday, data from the U.S. Labor Department showed inflation cooling and having possibly peaked, but inflation in Britain was the highest in years, according to data on Wednesday.
The dollar index rose 0.441%, with the euro down 0.41% to $1.1767.
The yield on 10-year Treasury notes US10YT=RR was up 2.9 basis points at 1.333%.
Spot gold dropped 2.3% to $1,751.53 an ounce. U.S. gold futures fell 2.27% to $1,751.70 an ounce.
Oil prices steadied on Thursday after hitting a multi-week high a day earlier as the threat to U.S. Gulf crude production from Hurricane Nicholas receded.
Brent crude LCOc1 ended the session up 21 cents, or 0.3%, at $75.67 a barrel. On Wednesday Brent touched $76.13, its highest since July 30.
(Reporting by Elizabeth Dilts Marshall; editing by David Evans, Steve Orlofsky and Sonya Hepinstall)
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Timing of Re-domiciliation The Company’s re-domiciliation to Singapore will become effective upon the transfer from Cook Islands on or about December 16, 2021, subject to regulatory approvals. Upon effectiveness of the Singapore re-domicile, the Company will be re-named abrdn Asia-Pacific Income Fund VCC. Henny Muliany and Hugh Young, will also join the Board of Directors (the “Board”) of the Company as Singapore resident, qualified representatives of the Company’s investment manager, Aberdeen Standard Investments (Asia) Limited (the “Investment Manager”).
This announcement has no effect of the annual redemption feature for the Company announced in August. Further details of the annual redemption will be provided in February 2022, if the parameters set forth in the Company by-laws are met.
Shareholders holding physical share certificates will receive a letter of transmittal to exchange their share certificate(s) for direct registration advice(s) (“DRS Advices”). Under the direct registration system, or DRS, shares will be registered in a shareholder’s name and held electronically in the Company’s records maintained by its transfer agent, Computershare Trust Company of Canada. DRS may also streamline participation in an annual redemption. Existing DRS holders will be mailed a new DRS Statement reflecting the Company’s new name and ISIN/CUSIP number.
Return of Par Value The Board has determined that 100% of distributions paid in the 2021 calendar year will be a return of paid-in capital out of par value under Cook Islands law. This reduction of par value represents an opportunity for the Company to make a tax-efficient distribution to Canadian taxable shareholders.
Distributions made on the shares held by a person resident in Canada for the purpose of the Income Tax Act (Canada) who holds such Shares as capital property (a “Canadian Holder”) which constitute a return of capital out of par value of the shares do not constitute dividends. Amounts so received generally would not be included in the Canadian Holder’s income but would generally be deducted in computing the Canadian Holder’s adjusted cost base of the shares. All other distributions will be dividends treated as income for Canadian income tax purposes.
The Board also declared a monthly distribution of CAD 2.25 cents per ordinary share payable on November 30, 2021 to all ordinary shareholders of record as of November 19, 2021 (ex-dividend date November 18, 2021), which will also be classified as a return of capital out of par value. Since Singapore legislation does not provide for paid-in capital or par value, the distribution paid in November 2021 will be the final return of par value capital of the shares.
Information for tax reporting purposes will be provided to the Company’s shareholders on a Form T5 in February of 2022.
Changes to Investment Policies The investment objective of the Company is to obtain current income and achieve incidental capital appreciation. Upon the recommendation of the Investment Manager the Board has adopted changes to certain of the Company’s investment policies.
The Investment Manager believes that the approved changes, as set out below, will enable the Company to deliver higher earnings in line with the Company’s distribution policy and stronger risk adjusted returns through the re-orientation of the Company’s portfolio to higher yielding markets, while also providing greater portfolio diversification by country and company exposures.
The changes adopted by the Board are summarized in the table below.
The maximum country exposure to any one Asia Pacific Country (other than South Korea) is limited to 20% of the Company’s total assets and the maximum currency exposure to any one Asia Pacific Country currency (other than the South Korean Won) is limited to 20% of the Company’s total assets. The maximum country exposure for South Korea is limited to 40% of the Company’s total assets, and the maximum currency exposure for the South Korean Won is limited to 25% of the Company’s total assets.
The maximum country exposure to any one Asia Pacific Country is limited to 30% of the Company’s total assets and the maximum currency exposure to any one Asia Pacific Country currency is limited to 30% of the Company’s total assets.
The Company may invest up to 50% of its total assets in Asia Pacific debt securities rated by Standard & Poor’s Rating Group, Moody’s Investors Service, Inc. or another nationally recognized statistical rating organization, or judged by the Manager to be, below investment grade at the time of investment, and the Company may invest up to 10% of its total assets in Asia Pacific debt securities rated by Standard & Poor’s Rating Group, Moody’s Investors Service, Inc. or another nationally recognized statistical rating organization, or judged by the Manager to be, below B- at the time of investment.
The Company may invest up to 60% of its total assets in Asia Pacific debt securities rated by Standard & Poor’s Rating Group, Moody’s Investors Service, Inc. or another nationally recognized statistical rating organization, or judged by the Manager to be, below investment grade at the time of investment, and the Company may invest up to 15% of its total assets in Asia Pacific debt securities rated by Standard & Poor’s Rating Group, Moody’s Investors Service, Inc. or another nationally recognized statistical rating organization, or judged by the Manager to be, below B- at the time of investment.
Important Information Past performance is no guarantee of future results. Investment returns and principal will fluctuate and shares, when sold, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. NAV returned data includes investment management fees, custodial charges, bank loan expenses and administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions. The Company is subject to investment risk, including the possible loss of principal. Total return based on net asset value reflects changes in the Company’s net asset value during each period. Total return based on market price reflects changes in market value.
Aberdeen Standard Investments (“ASI”) is the registered marketing name in Canada for the following entities, which now operate around the world under the abrdn brand: Aberdeen Standard Investments (Canada) Limited, Aberdeen Standard Investments Luxembourg Standard Life Investments Private Capital Ltd, SL Capital Partners LLP, Standard Life Investments Limited, Aberdeen Standard Alternative Funds Limited, and Aberdeen Capital Management LLC. Aberdeen Standard Investments (Canada) Limited, is registered as a Portfolio Manager and Exempt Market Dealer in all provinces and territories of Canada as well as an Investment Fund Manager in the provinces of Ontario, Quebec, and Newfoundland and Labrador.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Company’s investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the company’s portfolio. There is no assurance that the Company will achieve its investment objective. Past performance does not guarantee future results.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of future financial performance and condition of the Company, are factors and assumptions which, although considered reasonable by the Company, Aberdeen Standard Investments (Canada) Limited, Aberdeen Standard Investments Inc., and/or Aberdeen Standard Investments (Asia) Limited, as applicable, at the time of preparation, may prove to be incorrect. Shareholders are cautioned that actual results are subject to a number of risks and uncertainties, including the completion of the proposed Re-domiciliation and the anticipated benefits of the Re-domiciliation, general economic and market factors, including credit, currency, political and interest-rate risks and could differ materially from what is currently expected. The Company has no specific intention of updating any forward-looking information whether as a result of new information, future events or otherwise.
Are you on track to achieve your investing goals? Plenty of factors go into understanding whether you’ll be able to hit your targets, including your contribution rate, rate of return, taxes and inflation, among others. Forbes Advisor’s investment calculator is designed to help you see whether you’re making the right moves to reach your investing goals.
Below our investment calculator, you can find helpful explanations of the data we need, instructions on how to get the most from the calculator and answers to common questions.
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You’ll want to update our defaults with information that matches your own investment goals and financial situation. Here are more tips to help you get the most out of this calculator.
Include Your Income Tax Rates
While you may not like to think about taxes, you’re almost certainly going to lose some of your investment earnings to Uncle Sam. That’s why it’s helpful to include your federal, state and local tax rates in any investment growth calculations, to get a more realistic picture of what you’ll need to reach your goals.
If you aren’t sure which tax bracket you’re in, check out the federal tax guidelines. Not all states or local governments tax investment earnings, but if yours does you’ll want to include their tax rates—and see whether you’re able to deduct state taxes on your federal return.
To keep things simple, this calculator assumes that you’re cashing out the gains you make each year. You’ll then owe taxes on these earnings based on your current income tax rate.
Investing is a long game, and you shouldn’t cash out every year. That lets you benefit from long-term capital gains tax rates, which are lower but are only available if you hold investment for at least a year.
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This calculator shows the balances you might have in a taxable account as well as a tax-advantaged account to illustrate the great savings you can accrue with tax-advantaged accounts.
Consider the Role of Inflation
Inflation is when prices rise across the economy and eat away over time at the purchasing power of your dollars. Preserving and growing your purchasing power is one of the main reasons to invest in the first place.
Between 1925 to 2020, the Consumer Price Index (CPI), a common measure of U.S. inflation, rose on average 2.9% each year. But the inflation rate fluctuates constantly, and some years have seen astronomically high levels of inflation, like the 13.5% rate seen in 1980.
By clicking “View Report,” you can see how much your investment’s future value would buy with today’s dollars. This may help you figure out if your current contributions will have you on track based on the current cost of your goals.
Make Your Deposits as Early as Possible
Time in the market is one of the most important factors in successful investing because it gives your money longer to compound and grow over time. By default, this calculator assumes that you’re making your contributions at the end of whatever cadence you decide to contribute.
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Check the “Make Deposits At Beginning of the Period” box to compare how much more you might have if you simply invested your money as soon as you could each period. Over long periods of time, the differences can really add up, and that’s yet another argument for starting to invest as early as possible.
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There are two main types of investment accounts: taxable accounts and tax-advantaged accounts. The distinction is important because you may be able to deduct any contributions you make using a tax-advantaged account, like a 401(k) or IRA, and you’ll also generally be able to postpone or avoid paying taxes on any investment gains that occur while your money remains in the account.
This calculator presents both scenarios—investing in a taxable or a tax-advantaged account—so you can see the impact choosing either type might have on your returns.
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Investment Goal Calculator FAQs
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The kingdom will also back a plan to feed hundreds of millions of people by providing clean cooking fuels, Crown Prince Mohammed bin Salman said in Riyadh on Monday at a forum attended by heads of state.
By Vivian NereimBloomberg
Published On 25 Oct 2021
Saudi Arabia said Middle Eastern economies will be boosted by efforts to cut planet-warming gases and announced a fund to invest in carbon-capture technology.
“Climate change is an economic opportunity for individuals and the private sector,” Crown Prince Mohammed bin Salman said in Riyadh on Monday at a forum attended by several heads of state. Reducing emissions will “create jobs and strengthen innovation in the region.”
The kingdom will establish a fund to improve carbon sequestration and back a plan to feed hundreds of millions of people by providing them clean cooking fuels, Prince Mohammed said. The two initiatives will cost 39 billion riyals ($10.4 billion) and Saudi Arabia will contribute 15%.
The government will also open regional centers for early warning of storms, for sustainable fishing and for cloud seeding.
On Saturday, the prince pledged that Saudi Arabia would neutralize greenhouse gas emissions within its borders by 2060. It marked a seismic shift for the world’s biggest oil exporter, though officials included plenty of caveats and emphasized that Saudi Arabia and others would need to pump crude for decades to come.
The kingdom will try to develop facilities that capture and store carbon emissions as part of that commitment. The technology will be used for the production of blue hydrogen, a fuel made from converting natural gas and seen as crucial to the green-energy transition.
The net-zero goal “is a major step forward,” U.S. President Joe Biden’s climate envoy, John Kerry, said earlier on Monday. “It’s critical to have one of the world’s largest producers of fossil fuels step up at a moment when all countries, no matter their circumstances, need to come together.”
Other leaders at the Riyadh conference emphasized the need for governments to accelerate efforts to slow climate change.
“Just in the last two years we have seen fires in Siberia, in California, in the Mediterranean — unprecedented,” Pakistan’s Prime Minister Imran Khan said. “I hope that collectively we take this challenge much more seriously than we have done.”
Pakistan is stopping all coal projects and wants to make renewables 60% of its energy mix by 2030, he said.
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