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Some “Corporate Fear” Is Needed, Blain Urges “A Little Bit Of Good Old Creative Capitalist Destruction”

Some "Corporate Fear" Is Needed, Blain Urges "A Little Bit Of Good Old Creative Capitalist Destruction"



Some "Corporate Fear" Is Needed, Blain Urges "A Little Bit Of Good Old Creative Capitalist Destruction" Tyler Durden Fri, 09/11/2020 - 08:25

Authored by Bill Blain via,

“One believes things because one has been conditioned to believe them.”

Today is the anniversary of 9/11. Please find some time to trade with my former colleagues at BGC/Aurel-Mint who hold their charity day today in memory of the firm’s losses in NY that shocking day in 2001. 

This morning we wake to the news the UK has staged something of an economic recovery – but as predicted it’s proving remarkably sticky reopening the economy.  All eyes are still on the tech market – where the bounce proved the ailing cat isn’t in particularly good health. I shall stick my neck out and say the correction still has a way to go. Next week – beware. 

Yesterday I wrote about complexity and how the pandemic, bubbles, repressed returns, years of monetary distortion and the evolving political economy have changed the dynamics of markets.  One of the factors causing confusion is the increasing speed of change – it’s happening too quickly for us to fully comprehend. 

Apparently my comments on MMT have upset a well-known city economist who told a contact at major investment firm: “Blain knows nothing about economics, he’s just a market hack wanting to be heard..” Excellent. And I would agree – I know nothing about economics, but neither does anyone else.. (Touche!) That’s why it’s called the dismal science. 

Today, let me continue the New Reality analysis about dynamics and the speed of change. Rather than focusing on the past and present, let’s focus on the future and the other side of the equation – the outlook for business, industry and government, and how they will influence these changing dynamics. 

There are three themes to this morning’s story:

What’s the upside? 

The prospects for the global economy are fantastic! We can look forward to new generation micro-processing which will literally be a quantum revolution. The potential for a clean energy, new battery technologies, environmental improvement, and abundant power from fusion and hydrogen could be enormous. If you think the way we work has changed by “working from home”, the future of AI, Robotics, 3D and nano-tech will revolutionise everything we do and how we spend our increased leisure time. A new agricultural revolution in plants, food and soil will allow us to feed the world, alleviate poverty, raise educational standards and allow population growth to stablise, enabling us all to lead less anxious lives. Ah! Bliss.

Marvellous stuff! The future is going to be flying cars, rocket-packs and holidays on the beaches of Mars… ?

Perhaps. Why not? If try hard enough…. 

What’s the downside? 

All these things can only happen if the global economy moves forward, develops and evolves. There are massive inertia problems to be resolved. Much of our current economy isn’t fit for purpose. Political leadership seems mired in quicksand. Bureaucracy is perhaps the greatest scourge of the modern age. The blockages, rigidities and hurdles holding back the business of business aren’t getting simpler. They are multiplying. 

Not so good… is the future going to be like the Vogons currently running financial regulation? 

And, most importantly…

How will it happen? 

The role of government will be critical. The future of the global economy will depend on the delivery of functional physical and social infrastructure to enable change and evolution. That means breaking out of our current gridlocks, including inequality, and completely rethinking and remaking public goods like health, welfare and education and an acknowledgement that social justice and wealth-equality aren’t optional. 

I don’t think I need to say too much about the possibility of a bright Tech-led future – what matters is getting there, or as close to it as possible. As a Porridge reader recently reminded me: 15 years ago there were no smartphones, no social media, no Uber or Airbnb, Apple and Amazon were struggling and GE was AAA rated. The world changes.  Get over it.

Let’s start with the third issue – The role of government.That’s an immediate problem for my generation. We’ve been brainwashed since infancy to believe government is bad, less government is good. Big G is inefficient and leads to bureaucracy. Any Government spending will be riddled with featherbedding, inefficiency and outright corruption. Far better to let private enterprise lead the way – so we’ve always been told. 

Really? Private Enterprise isn’t much better. Let’s be honest – big firms have their brief periods of innovation, stratospheric growth and market leadership before they stumble into middle age, become sclerotic and die from obsolescence, competition, null-entropy and bureaucracy – that’s the Darwinian process of capitalism. The last thirty years spent worshiping at the Friedman Temple of corporate shareholder capitalism has seen some pretty shady behaviours  – massive executive rewards, stock buy-backs and the overleveraging of failing companies to pay out private equity owners…. I could go on. 

There is a middle ground. 

What if Maggie Thatcher was utterly wrong about Government having to be as frugal as a housewife? What if fiat money and monetary sovereignty works? What if Milton Friedman was wrong and Keynes, Smith et al are all right? 

Yesterday I raised the issue of stakeholder capitalism – and predictably got a number of emails telling me anything except the continued wealth creation by successful entrepreneurial billionaires will lead to disaster and communism. That’s not what a stakeholder economy needs to lead to. 

Shock Time. For the first time ever, I am going to say something positive about ESG – Environmental, Social and Governance Investment parameters. 

For too many investors ESG is simply an easy tick-box approach to avoid difficult compliance or investment committee questions. But ESG is still at an early stage as we evolve towards Stakeholder Economies.  Investments that aim to do good are laudable, but ones that are properly managed, do good and socialise the benefits are even better, especially when they also make profit!  (Sharing the money around is the issue for unreformed capitalists..) Few big banks or investors would publically admit ESG is bad - so how can Stakeholder be bad?

The big issue is can Government be trusted to deliver the public goods we will need to deliver our Bright New World? Can they be trusted to use the magical money tree of MMT to deliver the necessary reforms of health, education and welfare provision, solve inequality and rebuild ailing national infrastructure. That’s a question for functional democracy. 

One of the comments I got yesterday – from a leading academic – sums up the risks: “It’s as simple as this – unless you are the EU, which has zero monetary sovereignty, nations can solve all the issues you identify, including social and income equality, through focused MMT spending. Unless you are in the US, where the government has created some $670 bln and given it straight to the richest 1500, while 47 million and one in three kids still go hungry.”

It’s a warning – MMT is a potential solution. But a dangerous one if misapplied. If the resources of a state, and its control of fiat currency, are directed to support only the rich and powerful – explain to me what’s different from what they complain Communist China is guilty of? 

Let’s be more optimistic. the future looks bright and perhaps we can better resolve issues by adopting Stakeholder Capitalism. We can fund it all by selective government MMT programmes to finance public goods enabling us to do these things. Sounds easy – but perhaps it is? We need Decent politicians – note the capital D. Decent as in decent, honest, brave and true.  

Which leads us to the Big Problem, the second issue… the trend towards stultifying Bureaucracy. 

One of my favourite economic concepts is “Niskannen’s Theory of Bureaucracy”. Bureaucrats are driven by economic goals – which include making their lives easier, and controlling more and more makes it easy. It’s not just a government problem. Its rife across the private sector. Let me start by asking… have you spoken to your bank recently? 

Probably not. I bet you spent hours in a telephone queue, being told that “due to the Pandemic we are experiencing a high volume of calls”. I read the high street banks are sacking more staff and closing more branches. 

Let’s face it.. our banks don’t work. 

Because it makes sense to borrow money at negative real interest rates I recently applied for a mortgage – to finance rebuilding our house. We have money in the bank, and they are aware of our investment portfolio, pensions and other savings. However, they turned me down for a loan – on the basis I had a black credit mark. 

It turns out that black score is because a mobile telephone company made a mistake and reported I hadn’t paid them the horrendous sum of £66.30. EE have now acknowledged the mistake and apologised for not cancelling a direct debit. I have a cheque on my desk from them repaying the direct debits they claimed before I cancelled it. However, they say that “legally” they can’t undo the damage done to my credit score. They say the law demands it stays on my report for 2 years – despite it being patently incorrect. 

I asked the bank to be reasonable and look at the information. “Computer says No.” The Bank doesn’t want to lend to me, or anyone else, full stop. The telecoms company can’t be bothered to correct their mistake and raise potentially difficult questions about their systems.

Let’s focus on why banking bureaucracies fail. If a high-street bank lends money that causes all kinds of problems – if has to fill in sheaves of client reports, update their KYC, determine why someone with money in the bank wants to borrow more. They then will have to discuss the loan at half and dozen different compliance, diligence, diversity and capital committees. Then they have to weigh the risk of default, and put aside the correct capital charges to apply. Being “Pale, Male and Stale” doesn’t help – I might retire at some point in the 10-year life of the loan. Banks definitely don’t want to be lending to white-folk in their 60s. 

Effectively the big banks no longer function.  They have become bureaucracies where the treacle that flows through their operational arteries has made them ineffective and useless. They are still using multiple legacy systems, but don’t have the energy and won’t allocate the cash to replace them.  Yet these same banks are considered critical to the economy and will be bailed out repeatedly, confirming their criticality to the economy.  Their executives are paid in millions. 

Let the Big Banks go bust – that’s what should happen to failing companies!  

Actually, go further – close them down.  The financial system will not collapse if we put HSBC up against the wall. I would argue it would be a great “pour le encourage les autres” moment.. (“The English like to shoot an Admiral or two to encourage the rest”, as Voltaire said.) While we are it, lets put EE up against the wall as well, and blindfold a couple of credit agencies as well… 

A bit of corporate fear would be no bad thing.

There is no shortage of bright young FINTECH challenger banks out there that understand the opportunity to replace banking behemoths, and provide the missing aspects of customer service. The understand the need, the social service concept of banking for all, and they understand the opportunity to automate payments, digitise delivery and actually serve a useful social purpose… 

I think you get the drift…. Extend the same thinking across the whole economy and every government department. A little bit of good old creative capitalist destruction wouldn’t do us any harm. 

Here endeth today’s sermon.. 

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USD/CHF: Two-year yield surges as the risks grow to the US outlook

Republican Jim Jordan does not have enough votes to be elected House speaker in the first round of floor voting. Risk aversion was the early trade as hot…




  • Republican Jim Jordan does not have enough votes to be elected House speaker in the first round of floor voting.
  • Risk aversion was the early trade as hot data fueled Fed rate hike bets
  • Investors await key Chinese data that could alleviate global growth concerns

USD/CHF been a tough trade over the last week as geopolitical concerns initially sent safe haven flows towards the franc, but resilient economic data prevented risk aversion from running wild.  The movement with Treasury yields are driving concerns that financial conditions are about to have a crippling impact on the economy.  The 5-year yield rose to the highest levels since 2007.  The 2-year Treasury yield also surged above the 5.22%, which is just below the current Fed’s Target range of 5.25%-5.50% .

The USD/CHF daily chart is showing prices tentatively breaking below the 200-day SMA and key support from the bullish trendline that has been in place since August.  Wall Street has had a strong start to earnings season, but it seems traders are growing confident that a slowdown is here given how high rates are going.  The risks to the US outlook are growing as the risk of more Fed rate hikes remains on the table and as Treasury market liquidity concerns remain a key focal point.   If bearish momentum resumes, downside could the 0.8950 region.

The rest of the week could see risk appetite attempt a comeback if Chinese data impresses. China will have the release of Q3 GDP and September activity data that could show their economic recovery is gaining traction.  Too much Fed speak is on the calendar but traders will focus on Thursday’s appearance by Fed Chair Powell. The dollar may fall if he supports the stance that more time is needed to decide if more tightening is needed to tame inflation.


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Best Penny Stocks To Buy Now? These 3 Are Moving Fast In October

3 Hot Penny Stocks To Watch This Week
The post Best Penny Stocks To Buy Now? These 3 Are Moving Fast In October appeared first on Penny Stocks to Buy,…



Are you looking for the best penny stocks to buy now? Today might be your day…or not. These high-flying, low-priced stocks are well known for their innate ability to explode within a matter of minutes at times.

Imagine seeing a stock that trades for pennies on the dollar move less than $0.50 and score a 100% gain or more before lunch. It’s not science fiction; it’s trading penny stocks. Occurrences of scenarios like the one I just explained are not uncommon. But you need to understand the basics of trading, how to manage risk, and develop a trading style built for such volatility.

How To Trade Penny Stocks: A Brief Primer

Penny stocks are defined as stocks that trade for under $5 per share. They are typically issued by small companies that are not traded on major exchanges. The low price attracts investors looking for stocks that could see large percentage gains.

However, penny stocks are extremely volatile. Their prices fluctuate wildly and spreads between bid and ask prices are wide. Trading volumes are lower, making entering and exiting trades challenging. But that doesn’t mean they aren’t worth trading if you know what you’re doing.

Researching Penny Stocks Before Investing

Thorough research is crucial before investing in any penny stocks. Look at the company’s financial statements, operations, and recent news. Search for analyst coverage and reports if they exist. Check investor forums and social media to gauge current sentiment. This helps avoid buying into potential pump-and-dump schemes or companies already in decline.

Starting with Paper Trading

Begin by paper trading imaginary penny stock purchases. Track how your simulated trades would perform without risking real money. Open a practice trading account with an online broker to experience the real market action first-hand. This lets you learn the ropes before using actual capital.

3 Top Penny Stocks to Buy According To Insiders In October

Beginning to Trade with Real Money

When ready to trade real money, start very small. Only invest what you can afford to lose entirely. Limit penny stock positions to a maximum of 5% of your overall portfolio. Use stop losses on all trades to restrict potential losses. Focus on stocks with daily trading volumes above 500,000 shares for better liquidity. Monitor bid-ask spreads and use limit orders for better trade execution.

Staying Up to Date on Stocks You Own

Keep up with latest news, SEC filings, and developments related to stocks you own or are interested in. Set price alerts and follow stock message boards and social media feeds. Negative rumors or bad news can quickly tank penny stocks. Identify positive catalysts driving price spikes to find ideal entry points.

news penny stocks

Finding Penny Stocks with Momentum

Search for penny stocks breaking out to new 52-week highs on heavy trading volume. This signals upside momentum. Screen for stocks with earnings growth, analyst upgrades, or other improving fundamentals. Technical analysis can also help identify bullish chart patterns about to break out. Focus on quality companies in higher OTC Market tiers.

Using Caution and Limiting Risks

In summary, limit penny stock positions to a small portion of invested capital due to the substantial risks involved. Use stop losses, limit orders, paper trading, and small position sizes to minimize downside. With caution, penny stocks can provide opportunities for short-term gains as part of a diversified portfolio.

Best Penny Stocks To Buy Now? Here Are 3 To Watch

Virgin Galactic Holdings (SPCE)

Space stocks were once a popular topic, but the trend cooled off significantly with the shift in market sentiment. The latest risk-on environment, however, has brought interest back to companies in the niche. Virgin Galactic most notably has taken an appeal from investors as the company continues launching civilians into space.

4 Hot Penny Stocks To Watch With The Stock Market Up Today

Earlier this month, the company completed its fifth successful human space mission in the last five months. Michael Colglazier, CEO of Virgin Galactic, said: “Our teams in New Mexico and California have delivered on our monthly spaceflight objectives. Three new astronauts journeyed to space today and brought back incredible memories and stories of their experience above the Earth. These early missions with our initial ship, VSS Unity, have informed and confirmed the design and maintenance objectives for our Delta class spaceships, and the production tooling for those ships is on track to commence later in the fourth quarter.”

This week, as the market has risen, so have shares of SPCE stock. While it’s a positive for the company following a long stint of selling, Virgin is still hovering around 52-week lows.

bluebird bio Inc. (BLUE)

Earnings season is in full swing and showing the true colors of the companies reporting. bluebird bio will be reporting in a few weeks. In its last financial update, the company beat EPS estimates but missed on sales expectations. bluebird said that its commercial launch of ZYNTEGLO and SKYSONA remained strong and that a Biologics License Application for its lovo-cel in sickle cell disease was accepted for priority review by the FDA.

Andrew Obenshain, chief executive officer, bluebird bio commented, “Additionally, with the ongoing FDA review of lovo-cel and potential approval by the end of this year, bluebird is preparing for our largest opportunity yet to impact the lives of patients and families – a gene therapy for individuals living with sickle cell disease in the US.”

The FDA communicated in August that an advisory committee meeting will not be scheduled for lovo-cel gene therapy for sickle cell disease. The Agency previously accepted the lovo-cel Biologics Licensing Application (BLA) for Priority Review and set a Prescription Drug User Fee Act (PDUFA) goal date of December 20, 2023. In the interim, analysts have also begun picking up more coverage on BLUE stock. This week Cantor Fitzgerald initiated coverage with a Neutral rating. Last month HSBC initiated coverage with a Buy rating and set a BLUE stock forecast price target of $4.21.

EQRx Inc. (EQRX)

Shares of EQRx continue rising, thanks to acquisition news. The company is developing a platform to tackle some of the most prevalent disease areas, including candidates for breast cancer. It also has announced M&A developments in the works.

The company and Revolution Medicines, Inc. (NASDAQ: RVMD) announced a definitive agreement. The all-stock transaction is expected to add more than $1 billion in net cash to Revolution Medicines’ balance sheet.

Can You Still Make Money Trading Penny Stocks? 3 Tips

In an update, Melanie Nallicheri, president and chief executive officer of EQRx, explained, “With its pioneering portfolio of RAS(ON) inhibitors, designed to defeat RAS-addicted cancers which represent 30% of all human cancers, Revolution Medicines has the opportunity to address one of the largest areas of unmet need in oncology. Deploying our significant capital not only enhances this important vision, it also provides a compelling opportunity for our stockholders to participate in the upside potential of both near-term and long-term value catalysts.”

The deal is expected to close in November. As the date nears, so does speculative momentum in EQRX stock.

The post Best Penny Stocks To Buy Now? These 3 Are Moving Fast In October appeared first on Penny Stocks to Buy, Picks, News and Information |

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Air Corsica to digitalise IFE offer with Moment solution for a “memorable and connected cabin experience”

The following article was published by Future Travel Experience
Air Corsica has selected Moment (an exhibitor at FTE APEX Asia Expo, 8-9 November 2023,…



The following article was published by Future Travel Experience

Air Corsica has selected Moment (an exhibitor at FTE APEX Asia Expo, 8-9 November 2023, Singapore) to install its inflight entertainment system, the Flymingo Box, onboard the airline’s fleet by end-2023.

Air Corsica has selected Moment (an exhibitor at FTE APEX Asia Expo, 8-9 November 2023, Singapore) to install its inflight entertainment system, the Flymingo Box, onboard the airline’s fleet by the end of 2023.

Air Corsica has selected Moment (an exhibitor at FTE APEX Asia Expo, 8-9 November 2023, Singapore) to install its inflight entertainment system, the Flymingo Box, onboard the airline’s fleet by the end of 2023.

Designed as a compact, battery-operated server, the Flymingo box has the capacity to provide a video stream to 100 passengers simultaneously. The modular white-label solution allows airlines to customise their digital inflight service by adding or removing modules, such as entertainment, inflight magazine, e-commerce, satisfaction surveys etc.

“With the deployment of Moment’s innovative entertainment solution, we are reinforcing our sustainable commitments, which are part of our ‘Ambizione 2025’ strategy,” said Luc Bereni, Chairman of Air Corsica’s Management Board. “Simple to use, with an attractive design, we look forward to our customers enjoying this new customer service.”

Air Corsica has chosen to offer a rich entertainment platform with a large catalogue of selected content (movies, press, podcasts, games, etc). To further enhance the experience, Moment has partnered with Allindi, a Corsican VOD platform, to offer a 100% Corsican movie catalogue. Passengers will also have access to a moving map, inflight magazine and a satisfaction survey.

“The improvement of Air Corsica’s passenger experience is significant for the airline and we are proud to contribute to it with our solution,” said Tanguy Morel, CEO & co-founder, Moment. “In a context where passengers no longer expect to just travel but to have a great experience, we are committed to working alongside airlines to enable them to offer this memorable and connected cabin experience.”

Article originally published here:
Air Corsica to digitalise IFE offer with Moment solution for a “memorable and connected cabin experience”

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