UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

The UK government has unveiled a multi-billion-dollar plan to help young people find jobs as part of a 54 billion pound mini-budget to counter the economic shock from the coronavirus pandemic.

It announced a 2 billion pound ($3.6 billion) employment program and additional money for investment in training and apprenticeship schemes.

UK Chancellor of the Exchequer Rishi Sunak said the plan will help young people aged between 16 and 24 on social security payments to find a six-month job placement.

He also announced a short-term cut in sales tax for hospitality and tourism and an August “eat out to help out” discount scheme with the Government trying to encourage people to leave their homes and spend money.

There was also an immediate cut in stamp duty on house purchases of up to £500,000, which will stay in place until the end of March next year and a 2 billion pound grant for “green homes”.

Shares in major UK construction firms jumped.

Overall, the FTSE 100 came off its early lows and gained slightly as Mr Sunak announced the mini-budget, although it ended down 0.5 per cent at 6,156 points in a volatile session.

Tech shares rally on

In the US, stocks rose and the Nasdaq hit a record closing high as technology shares rallied amid signs of an economic rebound offsetting concerns about further coronavirus lockdowns.

Apple hit a new record high and Microsoft provided the biggest boost to the S&P 500.

The Dow Jones Industrial Average rose 0.7 per cent to 26,067, the S&P 500 gained 0.8 per cent to 3,169 and the Nasdaq Composite added 1.4 per cent to 10,493.

Biogen jumped after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy.

The market surge came despite the number of confirmed coronavirus cases in the US surpassing three million, affecting nearly one out of every

Read More Here...

UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

The UK government has unveiled a multi-billion-dollar plan to help young people find jobs as part of a 54 billion pound mini-budget to counter the economic shock from the coronavirus pandemic.

It announced a 2 billion pound ($3.6 billion) employment program and additional money for investment in training and apprenticeship schemes.

UK Chancellor of the Exchequer Rishi Sunak said the plan will help young people aged between 16 and 24 on social security payments to find a six-month job placement.

He also announced a short-term cut in sales tax for hospitality and tourism and an August “eat out to help out” discount scheme with the Government trying to encourage people to leave their homes and spend money.

There was also an immediate cut in stamp duty on house purchases of up to £500,000, which will stay in place until the end of March next year and a 2 billion pound grant for “green homes”.

Shares in major UK construction firms jumped.

Overall, the FTSE 100 came off its early lows and gained slightly as Mr Sunak announced the mini-budget, although it ended down 0.5 per cent at 6,156 points in a volatile session.

Tech shares rally on

In the US, stocks rose and the Nasdaq hit a record closing high as technology shares rallied amid signs of an economic rebound offsetting concerns about further coronavirus lockdowns.

Apple hit a new record high and Microsoft provided the biggest boost to the S&P 500.

The Dow Jones Industrial Average rose 0.7 per cent to 26,067, the S&P 500 gained 0.8 per cent to 3,169 and the Nasdaq Composite added 1.4 per cent to 10,493.

Biogen jumped after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy.

The market surge came despite the number of confirmed coronavirus cases in the US surpassing three million, affecting nearly one out of every

Read More Here...

UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

The UK government has unveiled a multi-billion-dollar plan to help young people find jobs as part of a 54 billion pound mini-budget to counter the economic shock from the coronavirus pandemic.

It announced a 2 billion pound ($3.6 billion) employment program and additional money for investment in training and apprenticeship schemes.

UK Chancellor of the Exchequer Rishi Sunak said the plan will help young people aged between 16 and 24 on social security payments to find a six-month job placement.

He also announced a short-term cut in sales tax for hospitality and tourism and an August “eat out to help out” discount scheme with the Government trying to encourage people to leave their homes and spend money.

There was also an immediate cut in stamp duty on house purchases of up to £500,000, which will stay in place until the end of March next year and a 2 billion pound grant for “green homes”.

Shares in major UK construction firms jumped.

Overall, the FTSE 100 came off its early lows and gained slightly as Mr Sunak announced the mini-budget, although it ended down 0.5 per cent at 6,156 points in a volatile session.

Tech shares rally on

In the US, stocks rose and the Nasdaq hit a record closing high as technology shares rallied amid signs of an economic rebound offsetting concerns about further coronavirus lockdowns.

Apple hit a new record high and Microsoft provided the biggest boost to the S&P 500.

The Dow Jones Industrial Average rose 0.7 per cent to 26,067, the S&P 500 gained 0.8 per cent to 3,169 and the Nasdaq Composite added 1.4 per cent to 10,493.

Biogen jumped after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy.

The market surge came despite the number of confirmed coronavirus cases in the US surpassing three million, affecting nearly one out of every

Read More Here...

UK will spend billions to boost hospitality sector, but FTSE sinks while Dow climbs

The UK government has unveiled a multi-billion-dollar plan to help young people find jobs as part of a 54 billion pound mini-budget to counter the economic shock from the coronavirus pandemic.

It announced a 2 billion pound ($3.6 billion) employment program and additional money for investment in training and apprenticeship schemes.

UK Chancellor of the Exchequer Rishi Sunak said the plan will help young people aged between 16 and 24 on social security payments to find a six-month job placement.

He also announced a short-term cut in sales tax for hospitality and tourism and an August “eat out to help out” discount scheme with the Government trying to encourage people to leave their homes and spend money.

There was also an immediate cut in stamp duty on house purchases of up to £500,000, which will stay in place until the end of March next year and a 2 billion pound grant for “green homes”.

Shares in major UK construction firms jumped.

Overall, the FTSE 100 came off its early lows and gained slightly as Mr Sunak announced the mini-budget, although it ended down 0.5 per cent at 6,156 points in a volatile session.

Tech shares rally on

In the US, stocks rose and the Nasdaq hit a record closing high as technology shares rallied amid signs of an economic rebound offsetting concerns about further coronavirus lockdowns.

Apple hit a new record high and Microsoft provided the biggest boost to the S&P 500.

The Dow Jones Industrial Average rose 0.7 per cent to 26,067, the S&P 500 gained 0.8 per cent to 3,169 and the Nasdaq Composite added 1.4 per cent to 10,493.

Biogen jumped after the company said it submitted the marketing application for its experimental Alzheimer’s disease therapy.

The market surge came despite the number of confirmed coronavirus cases in the US surpassing three million, affecting nearly one out of every

Read More Here...

China’s Tech Rally Starts Where Nasdaq’s Ended

Investors are smart to play in fields where the fiscal dollars are. But it’s also a dangerous game. What’s recurring income and what counts as extraordinary items? Once we remove government subsidies, the valuations of China’s tech darlings become even airier. 

Helicopter money can come in many forms. First and foremost, Beijing is a large client. Even before the coronavirus, the government was the biggest buyer of IT security, accounting for 27% of total spending last year, according to IDC. Meanwhile, the latest policies, which require stringent security reviews, clearly favor local providers. Investors have picked up on this theme: Shenzhen-based Sangfor Technologies Inc., with a 25% and 22% market share in China’s VPN and content security segments, has soared 89% this year to $12.6 billion in market value. 

There are also regular cash handouts that lubricate companies’ daily operations, and money for new industrial parks. Injecting capital outright, as well as fast-tracking public-markets financing, are also on the table. Semiconductor Manufacturing International Corp., China’s largest chip foundry and its best shot at catching up to Taiwan Semiconductor Manufacturing Co., checks all of the boxes. Its Hong Kong-listed shares have risen more than 200%, amassing a market cap of $29 billion.

Without the Beijing put, though, the income statements of many tech firms would look drastically different. At SMIC, government funding, which appears in “other operating income,” rose 87% to $293 million in 2019. A further $59 million in the first quarter exceeded the foundry’s $51 million bottom-line profit; in other words, without subsidies, SMIC would be in the red — and it wouldn’t even have a price-to-earnings ratio to look at. 

This phenomenon is pervasive. Of the 37 listed companies classified as “integrated circuit” industries, subsidies accounted for a whopping 15% of operating profit last year, on a market-cap weighted basis, Bloomberg Opinion analysis shows.

Read More Here...

China’s Tech Rally Starts Where Nasdaq’s Ended

Investors are smart to play in fields where the fiscal dollars are. But it’s also a dangerous game. What’s recurring income and what counts as extraordinary items? Once we remove government subsidies, the valuations of China’s tech darlings become even airier. 

Helicopter money can come in many forms. First and foremost, Beijing is a large client. Even before the coronavirus, the government was the biggest buyer of IT security, accounting for 27% of total spending last year, according to IDC. Meanwhile, the latest policies, which require stringent security reviews, clearly favor local providers. Investors have picked up on this theme: Shenzhen-based Sangfor Technologies Inc., with a 25% and 22% market share in China’s VPN and content security segments, has soared 89% this year to $12.6 billion in market value. 

There are also regular cash handouts that lubricate companies’ daily operations, and money for new industrial parks. Injecting capital outright, as well as fast-tracking public-markets financing, are also on the table. Semiconductor Manufacturing International Corp., China’s largest chip foundry and its best shot at catching up to Taiwan Semiconductor Manufacturing Co., checks all of the boxes. Its Hong Kong-listed shares have risen more than 200%, amassing a market cap of $29 billion.

Without the Beijing put, though, the income statements of many tech firms would look drastically different. At SMIC, government funding, which appears in “other operating income,” rose 87% to $293 million in 2019. A further $59 million in the first quarter exceeded the foundry’s $51 million bottom-line profit; in other words, without subsidies, SMIC would be in the red — and it wouldn’t even have a price-to-earnings ratio to look at. 

This phenomenon is pervasive. Of the 37 listed companies classified as “integrated circuit” industries, subsidies accounted for a whopping 15% of operating profit last year, on a market-cap weighted basis, Bloomberg Opinion analysis shows.

Read More Here...

China’s Tech Rally Starts Where Nasdaq’s Ended

Investors are smart to play in fields where the fiscal dollars are. But it’s also a dangerous game. What’s recurring income and what counts as extraordinary items? Once we remove government subsidies, the valuations of China’s tech darlings become even airier. 

Helicopter money can come in many forms. First and foremost, Beijing is a large client. Even before the coronavirus, the government was the biggest buyer of IT security, accounting for 27% of total spending last year, according to IDC. Meanwhile, the latest policies, which require stringent security reviews, clearly favor local providers. Investors have picked up on this theme: Shenzhen-based Sangfor Technologies Inc., with a 25% and 22% market share in China’s VPN and content security segments, has soared 89% this year to $12.6 billion in market value. 

There are also regular cash handouts that lubricate companies’ daily operations, and money for new industrial parks. Injecting capital outright, as well as fast-tracking public-markets financing, are also on the table. Semiconductor Manufacturing International Corp., China’s largest chip foundry and its best shot at catching up to Taiwan Semiconductor Manufacturing Co., checks all of the boxes. Its Hong Kong-listed shares have risen more than 200%, amassing a market cap of $29 billion.

Without the Beijing put, though, the income statements of many tech firms would look drastically different. At SMIC, government funding, which appears in “other operating income,” rose 87% to $293 million in 2019. A further $59 million in the first quarter exceeded the foundry’s $51 million bottom-line profit; in other words, without subsidies, SMIC would be in the red — and it wouldn’t even have a price-to-earnings ratio to look at. 

This phenomenon is pervasive. Of the 37 listed companies classified as “integrated circuit” industries, subsidies accounted for a whopping 15% of operating profit last year, on a market-cap weighted basis, Bloomberg Opinion analysis shows.

Read More Here...

NASDAQ 100 Forecast: Likely to Pull Back From Top of Channel

NASDAQ 100 Forecast: Likely to Pull Back From Top of Channel

Jul 08, 2020 (MENAFN via COMTEX) —

(MENAFN – Daily Forex) The NASDAQ 100 initially tried to rally during the trading session on Tuesday, as we continue to look very bullish. However, the market is likely to see a lot of selling pressure in this area as we are at the top of an overall channel, and that is something that the market has been paying attention to for some time. That being said, we are overextended, and I think that a little bit of a breather is probably necessary at this point.

At this point, I believe that if we break down below the 10,500 level, it is likely that the market will go looking towards the support levels underneath that are so prevalent on the chart. With this, the market is more than likely will go looking towards the 10,250 level, and then possibly even as low as the 10,000 level. The 10,000 level is a large, round, psychologically significant figure, and the scene of a major breakout. Furthermore, by the time we get down there, it is likely that the uptrend channel will reach that general vicinity.

Advertisement Current volatility is making great stock trading opportunities – don’t miss out! Trade Stocks Now!

The alternate scenario is that we break above the top of the candlestick, and then go looking towards the 10,750 level, possibly even the 11,000 level. That of course is an area that will cause a certain amount of psychological resistance, so it is likely that we would see a pullback from there as well. Nonetheless, the market is going to continue to pay attention to the same stocks that they always have, including Microsoft, Google, Amazon, Facebook, and a few

Read More Here...

NASDAQ 100 Forecast: Likely to Pull Back From Top of Channel

NASDAQ 100 Forecast: Likely to Pull Back From Top of Channel

Jul 08, 2020 (MENAFN via COMTEX) —

(MENAFN – Daily Forex) The NASDAQ 100 initially tried to rally during the trading session on Tuesday, as we continue to look very bullish. However, the market is likely to see a lot of selling pressure in this area as we are at the top of an overall channel, and that is something that the market has been paying attention to for some time. That being said, we are overextended, and I think that a little bit of a breather is probably necessary at this point.

At this point, I believe that if we break down below the 10,500 level, it is likely that the market will go looking towards the support levels underneath that are so prevalent on the chart. With this, the market is more than likely will go looking towards the 10,250 level, and then possibly even as low as the 10,000 level. The 10,000 level is a large, round, psychologically significant figure, and the scene of a major breakout. Furthermore, by the time we get down there, it is likely that the uptrend channel will reach that general vicinity.

Advertisement Current volatility is making great stock trading opportunities – don’t miss out! Trade Stocks Now!

The alternate scenario is that we break above the top of the candlestick, and then go looking towards the 10,750 level, possibly even the 11,000 level. That of course is an area that will cause a certain amount of psychological resistance, so it is likely that we would see a pullback from there as well. Nonetheless, the market is going to continue to pay attention to the same stocks that they always have, including Microsoft, Google, Amazon, Facebook, and a few

Read More Here...

NASDAQ 100 Forecast: Likely to Pull Back From Top of Channel

NASDAQ 100 Forecast: Likely to Pull Back From Top of Channel

Jul 08, 2020 (MENAFN via COMTEX) —

(MENAFN – Daily Forex) The NASDAQ 100 initially tried to rally during the trading session on Tuesday, as we continue to look very bullish. However, the market is likely to see a lot of selling pressure in this area as we are at the top of an overall channel, and that is something that the market has been paying attention to for some time. That being said, we are overextended, and I think that a little bit of a breather is probably necessary at this point.

At this point, I believe that if we break down below the 10,500 level, it is likely that the market will go looking towards the support levels underneath that are so prevalent on the chart. With this, the market is more than likely will go looking towards the 10,250 level, and then possibly even as low as the 10,000 level. The 10,000 level is a large, round, psychologically significant figure, and the scene of a major breakout. Furthermore, by the time we get down there, it is likely that the uptrend channel will reach that general vicinity.

Advertisement Current volatility is making great stock trading opportunities – don’t miss out! Trade Stocks Now!

The alternate scenario is that we break above the top of the candlestick, and then go looking towards the 10,750 level, possibly even the 11,000 level. That of course is an area that will cause a certain amount of psychological resistance, so it is likely that we would see a pullback from there as well. Nonetheless, the market is going to continue to pay attention to the same stocks that they always have, including Microsoft, Google, Amazon, Facebook, and a few others including Tesla and Netflix. Those of the cult stocks of Wall Street, so it is only a matter of time before buyers would step back into try to take advantage of cheaper levels. As soon as that happens, the NASDAQ 100 will more than likely continue to show up. With this being the case, I think it is only a matter of time before the market is going to find value and therefore jump all over this market. We are obviously in an uptrend and I do not see that changing as long as the Federal Reserve is willing to bail out the market every time, we have a small pullback. If we break down below the 50 day EMA, then we may have a longer-term ‘reset, but I do not see that happening anytime soon.

MENAFN0807202001310000ID1100454591

comtex tracking

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