—— Bridgewater disclosed a $10.5 billion European short position; high-end watch investment returns lead to alternative assets; Revlon’s share price rose 6 times in a week; GSK invested $1.2 billion to help low-income countries fight disease; MTA began to collect traffic congestion fees in the next year; McDonald’s Tighter rules and regulations for new franchisees; medical AI software company raises $110 million.
1. Bridgewater discloses $10.5 billion short positions in Europe
Bridgewater Associates, the world’s largest hedge fund, disclosed a $10.5 billion short position in 28 European companies, according to data compiled by Bloomberg.
Last week, the position targeted just 18 companies and was worth $5.7 billion. Just a week later, founder Ray Dalio stepped up again.
All the companies that Bridgewater is short on are in the Euro Stoxx 50, including well-known companies such as ASML Holding, TotalEnergies, Sanofi, and SAP. Recently, the economic growth in Europe has slowed down rapidly due to the serious price rise in Europe.
Generally, short-sellers who believe a company’s stock price will fall will make a profit by taking a short position. However, it is still unclear whether Bridgewater’s purpose of opening a position is for profit or for overall hedging.
Bridgewater’s co-chief investment officer Greg Jensen said in an interview with Bloomberg that the recent sell-off is nothing compared to the gains in U.S. and European stocks over the past 10 years, and there could be more to come. callback.
Bridgewater did not disclose the strategic intention of the short position, speculation or hedging is possible
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2. High-end watch investment returns lead to alternative assets
The Subdial50 Index, created by watch trading platform Subdial, tracks the price movements of the 50 most traded high-end watches in the world. The index has fallen 6% over the past 30 days, driven in part by capital markets – many owners of high-end watches opt to cash in on rallies during times of economic uncertainty.
In the index, the price of the Rolex Daytona 116500LN fell 10% in a month, but it still rose 19% in the past year. The price of another highly sought-after Patek Philippe Nautilus 5711 has also dropped 12% in a month but has risen 44% in the past year. Many Audemars Piguet Royal Oak models have shown similar price movements.
Ross Crane, co-founder and data scientist at Subdial, said prices for many popular models had surged over the past year, but prices have pulled back as demand and supply have converged.
Over the past 12 months, the Subdial 50 has gained 32%. Compared to stocks or vintage cars, gold, cryptocurrencies, and other alternative assets, watch prices have risen slightly.
During the pandemic, many consumers who have made money in the stock market or are flush with cash have started researching watches, which has also pushed up watch prices. Popular models from brands such as Rolex, Patek Philippe and Audemars Piguet more than doubled in price as more and more people flooded into the market to try and speculate.
Watches attracted a large number of enthusiasts and speculators
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3. Revlon shares 6-fold in one week
After Hertz Global Holdings declared bankruptcy in 2020, the stock was hyped by retail investors. The stock price of GameStop, which was not operating well at that time, was also fired by retail investors, setting off a wave of meme stocks.
After the cosmetics company Revlon Inc. declared bankruptcy last week, many retail investors, hoping to replicate the precedent, swarmed the market again to buy Revlon stock. Who would have thought that in the past 6 trading days, Revlon’s stock price has surged 596%, which is ridiculous for professional stock traders.
Now that the global stock market is recovering as a whole, the Federal Reserve is gradually closing the floodgates of low-interest currencies, and the astonishing trend of Revlon’s stock price also shows that retail investors still have a certain ability to manipulate the market.
“Bloomberg” analyst Phil Brendel (Phil Brendel) said that the rise in Revlon’s stock price is very strange, but the company’s market value must exceed at least $4 billion to escape the debt-laden bankruptcy crisis. The current market value of the company is still only $444 million.
The return of retail investors reignites the meme stock boom, highlighting the limited ability to manipulate the market
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4. GSK invests $1.2 billion to help low-income countries fight disease
British pharmaceutical company GlaxoSmithKline (GSK Plc) announced that it will invest $1.2 billion over the next 10 years to accelerate the development of symptomatic drugs and vaccines for malaria, tuberculosis, AIDS, tropical diseases, and antibiotics resistance.
In addition, the company has established a global health group, which is dedicated to the prevention and treatment of infectious diseases in low-income countries around the world. Thomas Breuer, GSK’s global health officer, said the company may not make any profits in low-income countries, where the measure of operational success is the health of citizens, not financial interests.
Global health team to treat citizens’ health as an operational criterion, not a profit
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5. MTA to start charging congestion fees next year
As early as the end of 2023, the MTA will begin charging more “congestion fees” to drivers entering congested roads, according to New York City’s Metropolitan Transportation Authority CEO Janno Lieber. fee) to try to ease traffic pressure. The exact amount of the surcharge has not yet been determined.
At present, the MTA has begun to build infrastructure including sensors and cameras. The new system could generate $1 billion in annual profits for the MTA. The MTA issued $15 billion in bonds to support the MTA Capital Plan, which totals $51.5 billion over the next few years.
On Thursday, Janno said the MTA is in dire need of cash and more road space for essential vehicles such as buses and ambulances, so the new system is necessary.
The traffic jam surcharge will increase the cost for drivers to enter Manhattan Island
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6. McDonald’s tightens rules for new franchisees
The Wall Street Journal reported that McDonald’s Corp. plans to overhaul the franchise-related system and require franchisees to pass stricter operational reviews every 20 years.
In addition, McDonald’s will also review performance and consumer feedback to determine which franchisees can continue to expand new restaurant locations.
Under the new system, new franchisees are required to set aside more cash flow from operations and designate a family member as an operations director.
Currently, 95% of McDonald’s restaurants around the world belong to franchisees. The company expects to implement new franchise rules and regulations from January next year, and hopes that the new system can make the outside world think that joining McDonald’s needs to be won.
Unqualified franchisees will be required to cease operations or be prohibited from opening new franchise restaurants
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7. Healthcare AI software company raises $110 m
Aidoc, a medical artificial intelligence software company, recently raised $110 million in new venture funding. The company’s technology helps radiologists detect strokes and other diseases more quickly.
Aidoc said the company’s artificial intelligence software can scan scans such as CT EEGs and automatically screen out cases that require follow-up visits.
Aidoc was founded in 2016, and currently, more than 1,000 medical clinics in the United States, Europe, Brazil, and Australia use the company’s software.
The company’s CEO, Elad Walach, hopes to use the new funding to expand the capabilities of its artificial intelligence software.
AI technology can detect anomalies in films faster, reducing human error among doctors
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The content of this article comes from various financial news media such as The Wall Street Journal, Financial Times, Bloomberg