Women dip into market for Adore Beauty’s listing

“To me that’s just wonderful and that’s why representation matters.”

Adore’s listing is the most valuable float this year and it is the biggest women-led business to list on the ASX, with Ms Morris as co-founder and Tennealle O’Shannessy as chief executive.

Ms Morris said lots of the women investing were very familiar with the company and the products it stocks, including cult beauty brands like Aspect, The Ordinary and Skinceuticals.

“If you’re a customer of a business then you understand what the value proposition is and one of the things that appealed to fund managers when we were doing the roadshows is that we did have this base of just really loyal, passionate customers that kept coming back year after year,” she said. “It’s more compelling to get excited about a stock when you’ve had some experience with it as a customer.”

Entrepreneur Summer Howarth bought shares in Adore on Friday in what she said was her first ever share market investment.

“I literally had to teach myself how to trade this week,” she said.


“I thought why would I invest in something I am not willing to be a customer in first? I always have a really great user experience [with Adore] and I know a lot of my friends are the same, Adore is their go to, it makes good sense if there are repeat customers.”

Ms Howarth said she was also keen to support a woman-founded business and particularly Ms Morris, who she admired for building Adore from scratch and teaching herself to code.

“It is also investing in the person and the product, it’s valuing what she has done and saying ‘let’s really support that’,” she said. “It’s saying ‘I want more of that’.”

Retail investors have been some of the big drivers of the strong performance of the Australian Securities Exchange this year with Commonwealth Bank’s popular trading platform Commsec recording 400,000 new subscriptions.

Oscar Oberg, lead portfolio manager at Wilson Asset Management, said while it was too early to determine to what extent retail investors made up Adore’s register, they often backed stocks in consumer facing products.

“When they can touch and feel it they probably feel more comfortable buying it,” he said.

Mr Oberg pointed to Temple & Webster, Kogan and Webjet as all having strong support from retail investors.

“Webjet is a great example of that, a big portion of their register is retail and effectively that was people trying to pick the lows with the travel sector,” he said. “To be fair the retail investor has done pretty well out of it.”

Mr Oberg said the coronavirus pandemic had also played a part in strong interest in the sharemarket from retail investors.

“A macro comment would be there’s just zero percent interest rates and more people working from home gives people more time to look at the market,” he said.

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How Thrive Market became an Amazon alternative for healthy, affordable

Since its launch in 2015, Thrive Market has distinguished itself as a membership-based online market that offers the kinds of organic, health-focused products that you can find at specialty stores and Whole Foods. The grocer carries more than 6,000 products that fall into hundreds of categories, from pet supplies to pantry staples to health and beauty products, with vegan, non-GMO, organic, raw, Fair Trade certified, gluten-free, and kosher items taking center stage. Now, Thrive Market is officially a registered B-Corp, meaning it prioritizes policies that embody “business for good.” Thrive is the largest grocer to achieve the certification, with products that are certified regenerative, fair-trade, non-GMO, and biodynamic.

Even more impressive, though, is that Thrive Market meets all those standards while offering products for 5% and 50% less than what you’d find elsewhere. That means saving money on staples such as Annie’s mac and cheese, Dr. Bronner’s soap, and wine (yes, wine is a staple). The company delivers additional value via its “Cash Back” section, which applies savings on select products to members’ next purchases.

The company can pull this off thanks to its membership model: It costs $59.95 a year, which breaks down to $5 a month. (You can also get a monthly subscription for $9.95 per month.) Thrive guarantees that its membership fee will pay for itself within a year—if not, it will refund you the difference in Thrive Market credit after you renew.

Thrive’s best value, though, is its growing private-label line of organic products, which now includes more than 650 items, including maple syrup, ghee, ground coffee, and even MCT oil. It’s particularly strong on snacks, offering everything from tortilla chips to apple sauce.

[Photo: courtesy of Thrive Market]

If this sounds a bit reminiscent of the 365 Everyday Value line from Whole Foods, that’s probably by design. Most of Thrive’s in-house products are priced right on par with the low-cost 365 line—which makes Thrive an increasingly compelling alternative to the Amazon-owned grocer.

Another reason to consider making the switch: Thrive’s mission to help make organic food more accessible. The company offers a free membership to low-income families, students, teachers, veterans, and first responders for every paid membership it gets. During the COVID-19 pandemic, Thrive has also directed all donations at checkout toward giving grocery stipends and free memberships to those affected by the pandemic. Currently, Thrive members have donated more than $100,000 at checkout, which the company has matched dollar for dollar. (People can contribute to this fund without placing an order, through the site’s donation page.) 

[Photo: courtesy of Thrive Market]

If that’s incentive enough to step away from your Amazon cart and skip your masked trip to the grocery store, start a free 30-day trial to Thrive Market and get 25% off your first order here.

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Italy draws €90bn of orders in stellar week for eurozone debt market

Italy’s sale of 30-year bonds drew strong demand on Thursday, locking in near-record low borrowing costs, in the latest sign of investors’ clamour for any eurozone debt offering extra yield above German Bunds.

The Italian Treasury received more than €90bn of orders from investors for the €8bn of debt on offer — second only to the €110bn of bids for two bonds sold in April. The debt was expected to price at a yield of 1.73 per cent, which would be the second lowest ever for 30-year Italian bonds.

The deal comes two days after the EU’s inaugural sale of bonds to fund its response to the Covid-19 crisis, which attracted record-breaking demand from investors. Although Brussels has a higher credit rating than Italy and offered lower yields, the €233bn order book for the EU debt demonstrated the hunger among investors for bonds offering a “spread” above Germany, which serves as a benchmark for debt across the euro area.

All German debt currently trades at sub-zero yields, with its 30-year bond at minus 0.18 per cent.

Bonds across the currency bloc have rallied in recent weeks, pushing their yields lower, on signs that inflation is lagging further behind the European Central Bank’s target of close to 2 per cent and that region’s recovery is faltering due to a surge in coronavirus cases. Expectations are running high that the ECB will respond by expanding its €1.35tn emergency bond-buying programme in December.

“I’m not sure the Italian deal would have materialised if the EU demand hadn’t been quite so strong,” said Antoine Bouvet, an interest rate strategist at Dutch bank ING. “I think there’s an overlap in the investor base for the two bonds, who see the ECB as a pretty warm comfort blanket to get out there and buy spread.”

Thursday’s sale, which was handled by BNP Paribas, Deutsche Bank, JPMorgan Chase, Banca Monte dei Paschi di Siena and Nomura, also included an operation to buy back some bonds maturing in 2021, 2023 and 2025. The exchange of shorter-dated debt for 30-year bonds shows the Italian Treasury is taking advantage of low yields to stretch out the average maturity of its borrowings, according to Mr Bouvet.

“Having more long-dated debt reduces refinancing risk if yields start to rise,” he added.

The €17bn of new EU bonds sold this week, whose proceeds will go to support jobs protection schemes in member states, have rallied in secondary trading. The 10-year bond now sits at a yield of minus 0.35 per cent, down 0.09 percentage points from where it was issued, meaning Brussels’ implied borrowing costs are now lower than those of France.

Investors are betting that financial support from the EU, including the upcoming €750bn recovery fund, will take the pressure off countries with higher borrowing costs such as Italy.

“The success of the EU bonds makes lower-rated credits in Europe look a little bit safer,” said Jim Leaviss, CIO of public fixed income at asset manager M&G Investments.

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Coronavirus a major impact on Tasmania’s real estate market, but not necessarily bad

Lisa and Peter Stodart are about to move into a house they’ve never seen in person.

The Sydney couple has just bought a house in the Hobart suburb of Howrah, 1,500km away.

Like a growing number of people, they’ve been motivated by a new entrant to the property market: COVID-19.

Unable to travel to Tasmania to inspect the property because of border restrictions, they took advantage of technology to make the purchase.

They saw the Howrah townhouse online one Friday night in September and using live streaming were able to do a virtual walk-through with the agent the next day.

By the following day they had bought it.

“At our age we’ve lived in enough houses to know and we both really loved it, it ticked all the boxes.

“It was wild but it just felt right.”

Mandy Welling says property sales have exceeded all expectations.(ABC News: Laura Beavis)

Real Estate experts say they are seeing a rise in mainland clients like the Stodarts, who want buy in Tasmania.

Many are even willing to make the sale without inspecting in person.

New Figures from the Real Estate Institute of Tasmania (REIT) suggest this is expected to rise after the borders open later this month.

Both of Australia’s major real estate websites are reporting that Tasmanian property had the highest number of views of any state in Australia during the September quarter.

“This suggests we could have an influx of people looking to migrate or invest here,” said REIT president Mandy Welling.

Agents were also telling her they had more calls than usual from potential interstate buyers.

“I think we’re going to see a considerable increase from those buyers.”

COVID prompts exodus from rat race

A balding man stands next to packing boxes
Peter Stodart gets ready for the move from a western Sydney unit to a house with views in Hobart.(Supplied)

Ms Stodart said she and her husband had been planning a move somewhere out of the “Sydney rat race” as they headed towards retirement but said COVID-19 forced them to hit fast forward.

For the Stodarts, the COVID factor was not so much about escaping restrictive lockdowns or the threat of the virus on the mainland.

Rather it was the fresh perspective it gave them on life.

“COVID really made us stop and think, life’s too short,” Ms Stodart said.

“We were looking to move in five years but COVID really accelerated that. My mum passed away, I have a daughter in Melbourne, a son living in Canberra.

But it won’t be until the borders open later this month whether agents will know if the growing interest in Tasmanian will translate into sales.

“It will be very interesting to see what happens to our statistics after that,” Ms Welling said.

Renewed interest after bumper quarter

The renewed interest in the island state comes after a bumper September quarter for the Tasmanian real estate market.

Between June and September there were nearly 3,000 property sales.

The number of house sales increased 32 per cent, unit and townhouse sales increased 39.1 per cent and land sales jumped 70.1 per cent.

The increases happened at both ends of the market, with first home buyer sales up nearly 50 per cent and acquisitions by investors also up.

The amount of properties that sold for more than $1 million were up 24 per cent.

It was driven largely by locals, with Tasmanians making 90 per cent of all transactions.

Ms Welling said it defied expectations of all market experts.

“The market’s just gone forward in leaps and bounds, it’s quite remarkable,” she said.

The demand is pushing up median house prices with Greater Hobart’s now at $545,000.

In Launceston it is $383,500 and in the north-west centres it’s $330,000.

On the flip side, it continues the bad news for renters, with median rents also rising statewide.

For a three-bedroom home it’s $450 a week in Hobart, $360 in Launceston and $310 in the north-west.

Real estate prices still attractive to interstate buyers

A woman sits among packing boxes
Lisa Stodart packs up her house ready to move to Hobart.(Supplied)

Hobart’s healthy real estate prices are not deterring mainland buyers.

The Stodarts chose Tasmania for its mix of natural wonders, clean air and slower pace.

“Hobart has all the advantages of a city, with the artsy side, the culture, and also felt to us like a big country town,” Ms Stodart said.

“Our little terrace [in inner-western Sydney] sold for more than what we paid for a brand new house with views.”

The Stodarts are hoping to move down south by the end of the year.

Aerial view of Hobart and inner southwest suburbs.
The median price for a three-bedroom house in Greater Hobart is now $545,000.(Supplied: Hobart City Council)

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Oil Extends Drop With OPEC+ Warning of Precarious Market Outlook


These 3 Penny Stocks Have Massive Upside Potential, Says Cowen

It’s a mixed bag when it comes to opinions on penny stocks. These tickers trading for less than $5 per share divide Wall Street like no other; market watchers either love them or hate them.It’s easy to understand the appeal. First and foremost, you get more bang for your buck. On top of this, with shares changing hands for bargain prices, even what seems like miniscule share price appreciation can translate to monstruous percentage gains. For some, however, the risk poses too great a threat to ignore. When you look under the hood of these low-priced names, you might find very real problems like poor fundamentals or looming headwinds.So, how are investors supposed to spot the penny stocks poised to go from rags to riches? By turning to the pros.With this in mind, we wanted to take a closer look at three penny stocks getting love from the pros, namely the analysts at investment firm Cowen. According to the firm, all three could soar in the year ahead. Using TipRanks’ database, we learned why Cowen analysts are pounding the table despite the risk involved.Neos Therapeutics (NEOS)Developing and commercializing innovative products, Neos Therapeutics wants to make a significant difference in the lives of patients with Attention Deficit Hyperactivity Disorder (ADHD) and other central nervous system (CNS) conditions. Although this name has struggled in the past, Cowen thinks that at $0.47 apiece, now is the time to snap up shares.Writing for the firm, analyst Ken Cacciatore acknowledges the momentum that was being driven by Adzenys XR-ODT, the company’s amphetamine-based treatment for ADHD, and Cotempla, its methylphenidate-based CNS stimulant also designed for ADHD, has slowed due to the pandemic. However, based on recent prescription trends, the analyst is seeing “signs of recovery ahead of the back to school (via video/classroom) acceleration in Q4.”Expounding on this, Cacciatore stated, “We continue to believe that management is taking the rights steps with the strategic improvements which seem to be benefiting from the more targeted prescriber base focus and more rapid adoption of the newco-pay assistance/fulfillment program (Rx Connect), to improve the profitability per prescription. And given what appears to be its early success of Rx Connect alongside spending reduction plan and salesforce restructuring we believe Neos could reach profitability by early 2022.”As the net revenue per pack for Adzenys and Cotempla grew 6% year-over-year to reach $128, Cacciatore argues the company’s efforts are paying off. “Again, we believe these data points appear to reflect the improved commercial approach, and the effectiveness of the company’s Neos Rx Connect pharmacy program which simplifies the previously more complex prescription fulfillment and co-pay assistance,” he commented.By enabling this access with Rx Connect, physicians can write prescriptions for Cotempla and Adzenys without worrying about patient call-backs. According to management, 30% of prescriptions are currently fulfilled through this program, and after multiple large regional pharmacy chains were added, the total number of partnered pharmacies was almost 900 in June, compared to 800 at the end of Q1.What’s more, the fact that NEOS is the only company to have both a methylphenidate and amphetamine alternate dose formulation product for the treatment of ADHD is enough to make it a stand-out, in Cacciatore’s opinion. Calling Cotempla the “perfect complement to Adzenys,” he notes that each asset covers one half of the large stimulant market.The analyst added, “Adzenys XR-ODT has experienced impressive prescription growth over the course of the past year, and is now the preferred ADHD alternative dosage form taking over from Pfizer’s market-leading Quillivant XR as its new-to-brand market share reached the number 1 position.”Also promising, NEOS offers Adzenys ER, which is an extended-release liquid suspension stimulant product for ADHD. The product is amphetamine-based like Adzenys XR-ODT, but is an alternative dosage form for patients who don’t prefer tablets or capsules. Cacciatore points out that success with the liquid alternative dosage form has already been demonstrated as Pfizer’s Quillivant XR generated over $100 million in annual sales in 2017.To this end, Cacciatore rates NEOS an Outperform (i.e. Buy) along with an $8 price target. Should the target be met, a twelve-month gain in the shape of a whopping 1,604% could be in store. (To watch Cacciatore’s track record, click here)Turning now to the rest of the Street, 3 Buys and no Holds or Sells have been published in the last three months. Therefore, NEOS has a Strong Buy consensus rating. At $8.33, the average price target is even more aggressive than Cacciatore’s and implies 1674% upside potential. (See NEOS stock analysis on TipRanks)Dynavax Technologies (DVAX)Bringing extensive expertise in Toll-like Receptor (TLR) biology and cutting-edge adjuvant technology to the table, Dynavax develops vaccines to protect the population. Thanks to its promising pipeline and $4.30 share price, Cowen believes investors should get in on the action.Representing the firm, 5-star analyst Phil Nadeau cites Heplisav as a key component of his bullish thesis. The product is an HBV vaccine that has been shown to be more effective than the other currently marketed HBV vaccines in a number of Phase 3 trials. Based on commentary from the firm’s consultants, he argues the asset could capture a significant portion of the $500 million-plus worldwide market for adult HBV vaccines.Also contributing to Nadeau’s optimistic stance, DVAX has agreed to several partnerships to further explore if CpG 1018, the adjuvant in Heplisav, can improve the efficacy of other vaccines.In September, DVAX announced its supply agreement with Valneva to produce up to 190 million doses over five years of Valneva’s COVID-19 vaccine candidate, VLA2001. This vaccine is an inactivated whole virus vaccine against the SARS-CoV-2 virus, and will incorporate DVAX’s CpG 1018 adjuvant. Clinical trials are expected to kick off by YE, with approval potentially coming in 2H21. In addition, the UK government has secured a supply of 60 million doses for €470 million, and there is an option for another 130 million doses for approximately €900 million.DVAX has already conveyed that it wants to make CpG 1018 a broadly used adjuvant, and has been making “rapid progress in implementing it,” says Nadeau. He notes that this deal is consistent with this strategy, and “in some ways represents a next step.” He added, “The supply agreement is notable as it helps demonstrate the economics that successful development of partnered vaccines could bring.”According to the company’s guidance, CpG 1018 could capture 15-30% of the economics when used in partnered vaccines. “Though management has not disclosed the exact economics in the Valneva collaboration, we believe they are consistent with DVAX’s guidance and suspect they are toward the middle of the range,” Nadeau commented.“In our opinion DVAX is significantly undervalued for the potential of Heplisav and the CpG 1018 adjuvant,” Nadeau concluded.It should come as no surprise, then, that Nadeau sides with the bulls. Along with an Outperform (i.e. Buy) rating, he puts a $20 price target on the stock, indicating 370% upside potential. (To watch Nadeau’s track record, click here)Other analysts echo Nadeau’s sentiment. 3 Buys and no Holds or Sells add up to a Strong Buy consensus rating. With an average price target of $16, the upside potential comes in at 276%. (See DVAX stock analysis on TipRanks)La Jolla Pharmaceutical (LJPC)Last but not least we have La Jolla Pharmaceutical, which develops innovative therapies for life-threatening diseases with significant unmet need. Given its impressive technology, Cowen sees its $4 share price as presenting an attractive entry point.Analyst Phil Nadeau, who also covers DVAX for the firm, highlights LJPC’s first commercial product, Giapreza, a patented formulation of the naturally occurring hormone peptide, angiotensin II, as a point of strength. Angiotensin II is a potent vasoconstrictor and a key regulator of blood pressure.The launch has been rocky, with the pandemic hitting the acute care in-hospital segment hard. That said, Nadeau remains optimistic. “…our consultants think there is a need for new vasopressors in CRH, and therefore we remain hopeful that Giapreza can ramp to become a meaningful product over time,” he explained.On top of this, in July, LJPC acquired Tetraphase, giving it the rights to Xerava, a novel fluorocycline antibacterial designed for the treatment of complicated intra-abdominal infections. Even though the therapy’s utilization was most likely impacted by COVID-19, Nadeau has high hopes for the product.Nadeau argues LJPC will be able to leverage its existing infrastructure to market and promote Xerava, with only minimal additional spend expected.“Though Xerava has many competitors, the market for antibiotics used to treat intra-abdominal infections is large — patients with appendicitis alone contribute to over 1 million hospital days each year in the U.S. Thus, with promotion, Xerava should continue to grow,” the analyst said. To this end, Nadeau projects $15 million in Xerava revenue in 2021, with this figure ramping to $60 million in 2024.Summing it all up, Nadeau stated, “Trading with a modest enterprise value, La Jolla is undervalued should Giapreza and Xerava be successfully commercialized.”Taking the above into consideration, Nadeau rates LJPC an Outperform (i.e. Buy) rating along with a $20 price target. This target conveys his confidence in LJPC’s ability to climb 402% higher in the next year.What does the rest of the Street have to say? When it comes to other analyst activity, it has been relatively quiet. 2 Buys and no Holds or Sells have been issued in the last three months. Therefore, LJPC gets a Moderate Buy consensus rating. Based on the $14 average price target, shares could skyrocket 251% in the next year. (See LJPC stock analysis on TipRanks)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Bill Miller says the Fed’s new inflation policy is the most important market event in 40 years

Bill Miller

Scott Mlyn | CNBC

The Federal Reserve’s new approach to inflation is the most important thing to happen to financial markets since the 1980s, investing legend Bill Miller told clients.

By establishing an average inflation target of 2%, the central bank has signaled to investors that it won’t be raising interest rates anytime soon, even if unemployment should drop sharply.

That in turn means that even though stock valuations appear stretched, equities are likely to be a much better option than bonds as the strategy plays out, the head of Miller Value Partners said in a letter distributed last week.

“The markets are, of course, aware of this new policy, but to be aware of it and to have fully discounted it are two different things,” he wrote. “I think the change in Fed policy is likely the most significant in over 40 years, and, if sustained, is likely to have dramatic consequences for asset prices.”

Miller said the policy will have different benefits across various market sectors.

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Effectively Market Your Product or Service With These 11 Digital Copywriting Courses

How to sell more online.

2 min read

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

There are literally billions of potential customers for your business on the Internet. But connecting with as many of them as possible is exceedingly difficult. There’s a lot of competition from other businesses, which is why it’s so crucial to write compelling copy. Whether you’re sending emails, social ads, newsletters, or anything else, great copy can help turn potential customers into buyers. In The 2020 Complete Digital Copywriting Master Class Bundle, you’ll learn how to do just that.

This 11-course bundle will teach you how to effectively scale your brand through engaging, sellable content. The bundle is led by veteran copywriter Alan Sharpe and digital product creator Danny Liu. Sharpe has 30 years of copywriting experience and has helped thousands of copywriters on four continents master the craft of copywriting. Liu is an Agile Release Manager and a CSPO/CSM and Digital Product Creator with 15 years of experience in technology infrastructure engineering design.

Between the two of them, they’ll show you how to use one of today’s top web hosting platforms, WordPress, and how to reach new audiences with your content. Not only that, but Sharpe will break down copywriting into a few vital steps.

You’ll learn how to ask seven important questions every time you write, how to craft awesome headlines and openers, and how to persuade audiences. Whether you’re writing sales pitches to businesses, product pages, landing pages, or anything else, Sharpe will show you what you need to do to get as many conversions as possible.

Become an effective digital copywriter and make more sales online. Right now, The 2020 Complete Digital Copywriting Master Class Bundle is on sale for just $38.99.

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China losing interest in Australian coal isn’t about diplomacy – it’s simply market dynamics | Alex Turnbull | Opinion

Australian politicians have been selling the “dream” of coal for years, but it’s a dream that is about to be mugged by reality.

China’s coal imports have been weak all year. Initially this was attributed to Covid but as China’s economy has resumed growth – and certainly growth in its energy-intensive sectors – coal imports have dropped sharply from all countries, not just Australia. Indonesian exports were down 37% year on year in September. Public statements from China are pushing the narrative that Australia is being punished for its diplomatic insolence, but Indonesian exports are being just as badly hit despite relations with China being on a comparatively better footing.

In some of the frenzied commentary around China and its suspension of coal imports it is important to understand market dynamics rather than taking the spin from the Chinese foreign ministry at face value.

The decline in Australian coal exports has nothing to do with diplomacy and hurt feelings and everything to do with long-standing Chinese economic policy. Australia has generally been unaffected by China’s mercantilist tendencies and desire for self-sufficiency which has been a driving concern in more high-tech sectors under Xi.

Photograph: GAC, sxcoal.com

We do not sell many chips, mobile phones or industrial equipment and have not felt the chill of China’s “localism” as much as Europe or the United States to date because we have limited presence in these supply chains. This is now changing as China quite explicitly pushes for self-sufficiency in key economic inputs such as energy and food. China’s rhetoric and policy looks more and more like a wartime North Korean “juche” footing.

As a major energy exporter this now matters a great deal for Australia. China’s plans for slower but more self-sufficient growth will slow their energy demand, allowing their investments in renewables, nuclear power and both the local coal capacity and logistics to move rapidly, which will reduce the need for energy imports, especially coal. How quickly they can go to zero imports is a topic of some debate but recent rail capacity expansions allowing them to use more of their own output from inland coalfields combined with low-carbon energy growth indicate that time may be now. China has throttled back imports already and shows no sign of shortages or reduced inventories. There is no reason to believe they cannot do this further.

For Australia to deal with this our political class first needs to face the reality that this is happening and no turnaround in diplomatic policy is likely to change it. Additionally this self-sufficiency policy could extend to other commodities we export to China. China’s determination to protect local industries and jobs as well as its more orthodox Maoist-Leninist turn dictates greater self-sufficiency and weaker commitments to free trade as both are far downstream of its more nationalist political priorities. This fact must enter our own economic calculus. Wishing for simpler, more liberal times when China was more committed to honouring trade agreements and growing rapidly is not an effective strategy.

To that end we need to start a discussion of how best to allow communities and workers in the coal sector to deal with this transition. The pressure is being felt already and reduced hours and job losses are impacting workers in the Hunter Valley and elsewhere. It is disingenuous to tell people that everything is fine when they know it is not.

Similarly we need to seriously consider the impacts of China’s more self-sufficiency-driven economic program and what it means for the rest of the economy. For some the developments in coal may be an unpleasant surprise but we should endeavour to not be surprised similarly again. Milk powder at some point will have to reconcile itself with China’s low fertility rates. Iron and bauxite industries will need to keep an eye on both lower growth targets and China’s efforts to reduce emissions and imports via recycling as well as efforts to second source from African mines.

Perhaps more poignantly we need to understand that wearing a high-visibility vest and helmet does not make work or employment more real or stable. Just because you can pick up a piece of coal and hold it in parliament does not make it more real and stable than working behind a screen. Commodity markets are volatile, undifferentiated products and the customers are concentrated with ageing populations and slowing growth. These industries are not beloved by investment managers for very plain reasons that have nothing to do with environmental, social or governance reasons.

Perhaps our politicians might cast a similarly dispassionate light on the sector and where Australia’s growth opportunities may lie rather than focusing on opportunities to play dress-up that PR flacks seem to prefer.

Alex Turnbull is a fund manager based in Singapore

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Eesti Energia to establish separate free market network services company | The Budapest Business Journal on the web

 Energy Today

 Thursday, October 15, 2020, 16:30

On Jan. 1, 2021, a new service company Enefit Connect will start operating, as part of the Eesti Energia Group, to manage electricity networks and a major portion of the street lighting network in Estonia, build internet network, develop the charging network for electric cars and offer its clients new energy solutions based on contemporary technology, according to a report by Baltic-course. 

The current network company of the group, Elektrilevi, will in the future only offer the electricity distribution network service regulated by the state.

The aim of the change is to allow the provision of regulated distribution network services to focus on its strength, and for services based on free-market logic to bring new value based on modern technology to the customer, Eesti Energia said in a press release on Tuesday.



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Private White House briefings led investors to short market and stock up on toilet paper, report says

Director of the National Economic Council Larry Kudlow speaks to reporters after a TV interview outside of the West Wing of the White House in Washington, DC on October 9, 2020.

mandel ngan/Agence France-Presse/Getty Images

Private briefings from two senior White House aides to a conservative institution at the outset of the coronavirus outbreak led investors to short the stock market and even load up on toilet paper, according to a published report.

According to the New York Times

That led William Callanan, a Hoover board member, to write a memo to David Tepper, the founder of hedge fund Appaloosa Management, and a Tepper aide, the report said. Callanan allegedly wrote that he found it striking that they both mentioned their concerns, unprovoked. The email was then circulated to other Appaloosa employees, who discussed the memo with other investors. The report said the memo helped convince investors to short the stock market.

Philipson, publicly, told a business conference the White House was taking a “wait-and-see” approach on the economic impact, which he limited to the fallout on the U.S. from Chinese lockdowns. Philipson also pointed out the deaths from flu each year don’t make a material impact on the economy.

“We have contained this. I won’t say [it’s] airtight, but it’s pretty close to airtight,” Kudlow said on CNBC.

Callanan told the New York Times the confidential memo the newspaper received was different from what he sent to Tepper, though he didn’t say in what way, and that it was based on extensive research and publicly available information. The report said Callanan also briefed another well-known investor. Callanan, now a consultant, previously had stints at Soros Fund Management, Duquesne Capital and Fortress Investment Group.

Tepper, also the owner of the Carolina Panthers NFL team, initially denied receiving the memo before later telling the New York Times that Appaloosa already had placed its bet on the market to fall before receiving it.

Tepper did raise concerns publicly about coronavirus at the beginning of February.

Philipson said he doesn’t remember the specifics of his talk to Hoover, though he acknowledged making comments to that effect. Kudlow said he didn’t think his comments to Hoover were any different than he had made on CNBC, and pointed out the case tally at the time was less than 20.

The New York Times report didn’t identify who stocked up on toilet paper.

The S&P 500

topped out on Feb. 19, and had only fallen 1.5% by the time the Hoover briefings began. The S&P 500 was down by 13% from its peak by the end of the week.

The benchmark index is up 8% this year.

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