Big money managers flee cash despite coronavirus, election worries

Big money investors have over the last six months poured cash into the markets at the fastest pace in 17 years as they fretted over COVID-19 and the upcoming presidential election, according to a new survey from Bank of America.

Cash holdings fell to 4.4% in October, down from 4.8% in September, and have now dropped 1.5 percentage points since April, the fastest decline since 2003. A reading below 4% is considered investor greed.

Respondents “said the recession is over, reduce cash, pause cyclical rotation, and price in contested election & February vaccine,” wrote Michael Hartnett, chief equity strategist at Bank of America. “We say sell SPX > 3600 and cyclical rotation via banks/energy to resume in Q4.”

Ticker Security Last Change Change %
SPX n.a. n.a. n.a. n.a.

TRUMP’S STOCK GAINS HIT

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Big Money, Day Traders Both Love Japan Tech Darling Mercari

(Bloomberg) — Mercari Inc., the online flea-market operator that has become one of Japan’s most closely watched tech ventures, is closing in on new highs as the stock has drawn both big and small money.

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The company has already grown to command the largest weighting on Japan’s startup-focused Mothers index as individual investors buy in — of some 230 of the largest Japanese companies with market value of over $5 billion, Mercari has the third-highest percentage of individual shareholders. Then on Oct. 7, Los Angeles-based money manager Capital Group declared it had taken a 5% stake in Mercari.

That’s helping propel the stock to near the 6,000 yen mark it hit just once, on the day it listed to great fanfare in 2018. After a rapid decline, the stock has worked its way back up this year, fueled by its first quarterly operating profit. That’s been helped by

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Big Money and Day Traders Alike Love Japan Tech Darling Mercari

(Bloomberg) — Mercari Inc., the online flea-market operator that has become one of Japan’s most closely watched tech ventures, is closing in on new highs as the stock has drawn both big and small money.

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The company has already grown to command the largest weighting on Japan’s startup-focused Mothers index as individual investors buy in — of some 230 of the largest Japanese companies with market value of over $5 billion, Mercari has the third-highest percentage of individual shareholders. Then on Oct. 7, Los Angeles-based money manager Capital Group declared it had taken a 5% stake in Mercari.

That’s helping propel the stock to near the 6,000 yen mark it hit just once, on the day it listed to great fanfare in 2018. After a rapid decline, the stock has worked its way back up this year, fueled by its first quarterly operating profit. That’s been helped by

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Nasdaq 100 Jumps 4% Amid Furious Rally in Big Tech: Markets Wrap

(Bloomberg) —

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U.S. stocks climbed, with the Nasdaq 100 jumping 4%, amid a rally in some of the world’s largest technology companies.

The S&P 500 jumped to a six-week high and the tech-heavy gauge was on track for its biggest gain since April, with Amazon.com Inc. and Apple Inc. soaring ahead of key events. The online retailer kicks off its Prime Day on Tuesday, while the tech behemoth — whose price target was raised by RBC Capital Markets — is set to embrace 5G as one of its most significant additions to this year’s iPhones. Twitter Inc. rallied on an upgrade at Deutsche Bank, which also boosted its price estimates for other companies that derive their revenue from digital advertising such as Facebook Inc. and Alphabet Inc.

After plunging into a correction last month, the Nasdaq 100 extended its surge from this year’s lows to almost 75%. Investors

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Big industrial buildings trade at DFW Airport and North Fort Worth

An international investment firm now owns an industrial park at DFW International Airport.

New York-based Brookfield Properties acquired the three-building Passport Logistics Center.

The 1.2 million-square-foot warehouse and distribution complex was developed by Dalfen Industrial, which has headquarters offices in Dallas and Canada. The buildings are at the south end of the airport near Airport Freeway and are part of the airport’s mixed-use Passport Park development.

“With the project’s prime location and best-in-class functionality, Brookfield Properties leased 50% of the project during construction,” Brookfield Properties officials said in a statement. “Over the past three years, Brookfield Properties has increased its footprint in the Metroplex, adding over 5.5 million square feet across nine transactions.”

During the last year, Brookfield has added more than $1.2 billion in logistics properties in the U.S.

North Texas warehouse construction is barely keeping up with demand.

Dalfen Industrial in turn has bought five industrial buildings in Fort Worth and San Antonio.

In Fort Worth, Dalfen acquired

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Earnings Preview: Big 6 Banks Should See Solid Profit Growth

Big bank profits will highlight the unofficial start of the third quarter earnings season this week, with investors looking for sequentially improving performance, as well as a guide on economic trends heading into the final months of the year. 

With the Federal Reserve keeping its cap on dividend and buybacks in place until at least 2021 in order to ensure that lenders have enough capital to absorb a protracted downturn triggered by the coronavirus pandemic, investors will be looking to see how each of the largest U.S. banks will manage both their credit provisions and near-term economic forecasts as they publish third quarter earnings throughout the week.

Under the Fed’s restrictions, banks will be limited to paying dividends that are either in line with payouts from last year or equal to an average of earnings for the previous four quarters. 

The six biggest U.S. banks — JPMorgan Chase, Citigroup, Bank

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Falcons Big Money Players Not Delivering; Quinn, GM Out

The fixed order of the NFL is to give contracts to the big stars. If an organization gets hit by poor coaching, injuries, close losses, and underperformance of those stars, an unholy mess follows and the salary cap becomes a ball-and-chain. The Falcons are in the pit of that mess this week and owner Arthur Blank, at last, recognized it is time to fire head coach Dan Quinn and general manager Thomas Dimitroff. Atlanta is 0-5 and the ignominy of the dismissal wasn’t carried out on Zoom, but in a late-night statement Sunday.

All those contracts, the parade of big money, deal after deal, promise after promise, and the Falcons are winless. Quinn and Dimitroff were co-joined

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Japan bank lending slows as easing pandemic sees big firms pay back loans

* Bank lending rises 6.4% in September vs 6.7% in August

* Major banks’ lending slows as big firms pay back loans

* Smaller borrowers continue to rely heavily on lending

(Adds details, quotes from BOJ briefing)

By Chris Gallagher and Leika Kihara

TOKYO, Oct 12 – Japanese bank lending rose at a slower
annual pace in September than the previous month as corporate
funding strains caused by the pandemic eased mainly among big
borrowers, central bank data showed on Monday.

But lending by regional banks remained high as smaller firms
continued to borrow heavily to meet immediate funding needs, the
data showed, underscoring the lingering economic pain brought by
the health crisis.

“Big companies that had borrowed huge amounts of funds as a
precaution around spring are now paying back some of the loans
due to easing uncertainty over the pandemic,” a BOJ official
told a briefing.

“But that’s

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Big tech’s emerging market finance push brings rewards and risk, FSB says

LONDON, Oct 12 (Reuters) – A push by big technology firms into financial services in developing countries will improve access to them, but might also make traditional lenders more vulnerable, the Financial Stability Board (FSB) said.

The expansion in emerging markets has generally been more rapid and broad-based than that in advanced economies, the FSB, which coordinates financial regulation for the Group of 20 Economies (G20), said in the report released on Monday.

Lower levels of access to traditional banking and financial services developing economies had created demand for services now offered by big tech firms, the report found, particularly among low-income populations and in rural areas.

An increasing availability of mobile phones and internet access supported this trend, the FSB said.

“However the expansion of BigTech activity also gives rise to risks and vulnerabilities,” it said, pointing to lower financial literacy and firms using other data gathered.

“Competition from

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Big Money Funds Debate on Illinois Graduated Income Tax Vote | Illinois News

By JOHN O’CONNOR, AP Political Writer

SPRINGFIELD, Ill. (AP) — Both sides in the debate over a ballot measure to change Illinois’ income tax system from a flat-rate to a graduated structure have straightforward arguments

Democratic Gov. J.B. Pritzker and other proponents call it the “fair tax” because it demands more from those with higher incomes. Those making less than $250,000 a year would pay no more than the current 4.95% flat rate.

Opponents point to the state’s history of political corruption, saying the proposal on the November ballot would loosen constitutional restraints on lawmakers’ spending.

The ballot question would amend the Illinois Constitution to discard the current income tax system, in which every individual pays the same flat rate, 4.95%, and corporations pay 7%. It would set up brackets, like the federal government and 32 other states. The tax rate would increase with income.

Campaign group Vote Yes for

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