|Bid||40.21 x 1200|
|Ask||41.00 x 800|
|Day's Range||40.79 - 41.25|
|52 Week Range||36.45 - 52.07|
|Beta (3Y Monthly)||1.02|
|PE Ratio (TTM)||17.61|
|Earnings Date||Nov 5, 2019|
|Forward Dividend & Yield||1.40 (3.42%)|
|1y Target Est||49.30|
(Bloomberg) -- The record-breaking rally for European government bonds is facing a major test, as euro-area nations turn to fiscal stimulus in the fight to revive the region’s struggling economy.The Netherlands and Finland have already taken the first steps after the European Central Bank’s call for more spending. But strategists say any threat posed to the bond market bull run -- from a sustained increase in supply at first and then via inflation -- depends on Germany’s response.Doubts about the ability of monetary policy to work any further are setting the tone for Mario Draghi’s last days as president of the ECB. His successor, Christine Lagarde, may use her background in charge of the International Monetary Fund to push for more government spending in Europe, even as the Federal Reserve continues to cut U.S. interest rates.German Finance Minister Olaf Scholz has pointed toward a potential 50 billion euros ($55 billion) of stimulus, but only in the event of an economic crisis. At the moment, the euro area’s biggest economy is still committed to its so-called debt brake. That has helped the federal government apply its “black zero” policy, which has kept net new borrowing at zero over the last five years. No net deficit is envisaged before 2023 at the earliest.“To really see a ripple across bond markets, you need official confirmation that Germany is about to sacrifice the black zero and the debt brake with plans to launch a meaningful fiscal package worth double-digit billions by next year,” said Christoph Rieger, head of fixed-rate strategy at Commerzbank AG. “That’s still unlikely under the current government.”A further sign of the growing struggles of monetary policy came Thursday, when the take up of new cheap loans from the ECB by banks totaled around 3 billion euros. Analysts had expected lending of between 20 billion euros and 100 billion euros. Bonds in Italy declinedafter the long-term refinancing operation, known as TLTRO. Previous rounds have been widely used by the country’s banks, which are major buyers of their domestic sovereign debt.Growing Complexity“It underlines the longer term point that one central bank after another is effectively admitting they are not omnipotent,” said Marc Ostwald, a global strategist at ADM Investor Services in London. “If monetary policy is so complex for the banking system, then it is unlikely to have the impact that central banks want.”Without a commitment of more spending from Germany, the overall dynamics in the bond market are unlikely to change, even as smaller countries ready their own response. The Netherlands has unveiled a proposal for a national investment fund, potentially as large as 50 billion euros, while Finland plans to boost spending by 2.1 billion euros. Italy is accustomed to playing fiscal tug-of-war with the European Union.The adoption of such a policy from Germany would break into new territory, which bond bulls are watching. Any sustained rise in consumer prices erodes the fixed-income returns offered by bonds in real terms, adding to the relative appeal of rival asset classes.That would likely coincide with increased demand for stocks and rising risk appetite across global markets. These trends would also reduce the need for bond-friendly monetary easing from the ECB, which has been one of the main drivers of the demand that has taken yields to record lows.Such a set of game-changing circumstances remains remote, for now, and bond markets have been largely immune to talk of more borrowing. German 10-year yields are still 50 basis points below 0%, while those on Italian and Spanish securities have set record lows in recent weeks.And doubts remain on any such fiscal stimulus working, should it be adopted. For Mizuho International Plc, signs of Germany loosening spending will boost yields, but may do little to revive the region’s economy.“Germany would need to be breaching the stability and growth pact for there to be a material and sustained move higher in core EGB yields,” said Peter Chatwell, head of European rates strategy, referring to EU rules on deficits. “Monetary and fiscal easing can inject stimulus into the economy, but they cannot bring forward sufficient demand from future generations if the population will be shrinking.”Nonetheless, the impact of any change of policy in Berlin could be immense. Global fund managers surveyed by Bank of America Merrill Lynch say German fiscal stimulus would be a greater boon to risk assets than infrastructure spending in China or aggressive central-bank policies.Such findings are enough to give pause for thought to even the biggest bond bulls, especially after their long, record-breaking run.(Updates with TLTRO results from sixth paragraph.)To contact the reporter on this story: John Ainger in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Paul Dobson at email@example.com, Michael Hunter, William ShawFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
CHICAGO and WHITE PLAINS, New York and MINNEAPOLIS and GENEVA and ROTTERDAM, Netherlands, Sept. 19, 2019 /PRNewswire/ -- The industry-wide initiative to modernize global agricultural commodity trade operations announced today that another major partner, Glencore Agriculture Limited, has joined the effort. "We've been interested in the initiative from the very early days and we're excited now to join as a full partner," said Glencore Agriculture Limited CEO David Mattiske. "The digital platform this group intends to develop will leverage the newest technologies and has the potential to revolutionize our industry, making contract execution processes more efficient, more accurate and more transparent.
An executive director at Archer Daniels Midland Co in São Paulo has left the firm to take over as Brazil general manager at rival grain trading house Gavilon do Brasil, two sources told Reuters on Wednesday. Marcelo Grimaldi served most recently as a director at ADM responsible for Andean countries and the biodiesel business, according to his LinkedIn profile, which has not been updated. Grimaldi did not reply to a request for comment via LinkedIn.
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WINNIPEG, Manitoba/CHICAGO (Reuters) - Bunge Ltd, one the world's biggest grain traders, recently disclosed the 1.6% stake it had purchased in the fast-growing fake-meat startup Beyond Meat. The play looked smart after the stock surged more than 250% since the faux burger and sausage maker's initial public offering in May. Indeed, Beyond Meat's market capitalization of $9.9 billion is now larger than Bunge's, a 201-year-old firm with 31,000 employees. No wonder many top agricultural firms want to grab their cut of the booming market for plant-based fake meat.
Global grain trader and food processor Archer Daniels Midland Co allegedly manipulated the price of ethanol to profit from a short position it was holding in the derivatives market, according to a lawsuit by a rival firm. AOT Holdings, a Swiss company that owns an energy trading subsidiary, filed the class action complaint late on Wednesday in U.S. District Court's Central District of Illinois Urbana Division, claiming damages from ADM's actions of up to $6.33 million. The lawsuit follows reporting by Reuters last year that ADM's ethanol selling had led traders to complain to S&P Global Platts, which provides benchmark pricing for the physical ethanol contract at different U.S. delivery points including Chicago.
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WASHINGTON/BRASILIA, Aug 30 (Reuters) - Brazil's foreign minister and President Jair Bolsonaro's son met with U.S. President Donald Trump on Friday to discuss the fires ravaging the Amazon rainforest, although no concrete measures to deal with the blazes were announced. Speaking to reporters following the meeting, Eduardo Bolsonaro said there could be an announcement later, potentially after his return to Brasilia on Saturday and consultations with his father. Bolsonaro has said he will appoint Eduardo as Brazil's ambassador to the United States, but the controversial nomination has yet to be sent to the Senate for voting and confirmation.
WASHINGTON/BEIJING, Aug 29 (Reuters) - The United States and China gave signs on Thursday that they will resume trade talks as the two economic superpowers discussed the next round of in-person negotiations in September ahead of a looming deadline for additional U.S. tariffs. A new round of U.S. tariffs on some Chinese goods is scheduled to take effect on Sunday, threatening to escalate an already bitter trade war. President Donald Trump said some discussions were taking place on Thursday, with more talks scheduled.
Beyond Meat is just the beginning of a new emerging cohort of innovative companies. These innovators are changing how we feed the planet without consuming more of its resources.
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Archer Daniels' (ADM) weak Carbohydrate Solutions segment is concerning. However, the company's growth efforts including the Readiness program is likely to aid performance.
U.S. high-dividend stocks are trading at their biggest discount in four decades as investors flock to bonds, pushing down their yields.
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Europe stocks traded sharpy lower on Wednesday after data showing the Continent’s largest economy contracted and eurozone industrial production declined.