British Steel collapses putting about 25,000 jobs at risk; Blaming Brexit

London (CNN Business)Britain's second biggest steel maker collapsed on Wednesday, putting about 5,000 jobs at the company directly at risk, and threatening another 20,000 at suppliers.

The company was seeking a government bailout, but talks ended without agreement. The High Court ordered the company into compulsory liquidation, according to the government's Insolvency Service.

British Steel was reportedly seeking a government loan of £75 million ($95 million) to cover losses it suffered because orders from the European Union had evaporated due to the uncertainty surrounding Brexit.

"Unable to decipher the trading relationship the UK will have with its biggest market in just five months' time, planning and decision making has become nightmarish in its complexity," UK Steel, the industry's trade association, said in a statement.

British Steel, which had already been granted a government loan of £120 million ($152 million) last year, was bought by investment firm Greybull Capital from India's Tata Steel in 2016 for just £1.

The government said it has appointed EY to try to find a new owner for the company. British Steel will continue to operate and its workers will be paid while the search continues.

"Failure to find a buyer would be devastating to many areas which rely so strongly on this industry," said Hannah Essex, co-executive director of the British Chambers of Commerce.

The GMB labor union said the UK government should have considered all options, including nationalization, in order to save the company.

"But they either don't care or wouldn't take off their ideological blinkers to save hard working people and communities," said Tim Roache, GMB's general secretary.

European steel makers have been under pressure because of cheap competition from China. The European Commission put anti-dumping measures on Chinese steel in 2017, and extended them in 2018 after an investigation showed the practice of flooding the market with steel priced below production cost was continuing; On top of that, steelmakers around the world were hit last year by tariffs imposed by the Trump administration. The tariffs have provided some relief to American steelmakers, but analysts say their future is also uncertain. Shares in major US steel producers have plummeted in the year since the tariffs were announced.

Jonathan Owens, supply chain and logistics expert at the University of Salford Business School, said that British Steel had been struggling in a very competitive market and that a new government loan may only have delayed the inevitable failure of the company.

British Steel produces more than 2.8 million tonnes of steel a year. It employs around 4,100 people at its sites in the United Kingdom, and 900 in other countries.

Trade unions warned Tuesday that 20,000 jobs in the supply chain would be at risk if the company collapsed.

US crude rises 34 cents, settling at $63.10, as OPEC signals it will keep output caps

Oil were mixed on Monday after hitting multi-week highs overnight, as OPEC indicated over the weekend that it was likely to maintain production cuts that have helped boost crude prices this year.

Escalating Middle East tensions provided further support.

U.S. West Texas Intermediate crude futures settled 34 cents higher at $63.10 a barrel. WTI reached $63.81 earlier, the highest since May 1.

Brent crude oil fell 24 cents to $71.97 a barrel, after the international benchmark for oil prices earlier touched $73.40, the highest since April 26.

Saudi Energy Minister Khalid al-Falih said on Sunday there was consensus among OPEC and allied oil producers to drive down crude inventories “gently” but he would remain responsive to the needs of what he called a fragile market.

The comments gave an early boost to oil prices on Monday, but futures pared gains throughout the session.

“Nothing substantial has gone out further, so the gain is leaking out of the market,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. “The market doesn’t want to get too far ahead of itself.

OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to cut output by 1.2 million barrels per day (bpd) from Jan. 1 for six months to try to prevent inventories from increasing and weakening prices.

A gathering of the group’s Joint Ministerial Monitoring Committee in Saudi Arabia over the weekend did not make any solid recommendations.

OPEC and its allies are due to meet in Vienna on June 25-26 for their next oil policy meeting. However, the group is considering moving the date to July 3-4, two OPEC sources said on Monday. The date change has not been officially confirmed, the sources said.

United Arab Emirates Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cuts was not the right decision.

OPEC data indicated oil inventories in the developed world rose by 3.3 million barrels month-on-month in March, and were 22.8 million barrels above their five-year average.

Adding to the bullish sentiment is rising tensions in the Middle East.

Britain told Iran on Monday not to underestimate the resolve of the United States, warning that if American interests were attacked then the Trump administration would retaliate.

Build long-term relationships with CRM software

Few businesses today can afford to let potential buyers slip through the cracks. Customer relationship management (CRM) software can help you build long-term relationships with those most likely to buy your products or services. But to maximize your return on investment in one of these solutions, you and your employees must have a realistic grasp on its purpose and functionality.

Putting it all together

CRM software is designed to:

• Gather every bit and byte of data related to your customers,
• Organize that information in a clear, meaningful format, and
• Integrate itself with other systems and platforms (including social media).

Every time a customer contacts your company — or you follow up with that customer — the CRM system can record that interaction. This input enables business owners to track leads, forecast and record sales, assess the effectiveness of marketing campaigns, and evaluate other important data. It also helps companies retain valuable customer contact information, preventing confusion following staff turnover or if someone happens to be out of the office.

Furthermore, most CRM systems can remind salespeople when to make follow-up calls and prompt other employees to contact customers. For instance, an industrial cleaning company could set up its system to automatically transmit customer reminders regarding upcoming service dates.

Categorizing your contacts

Customers can be categorized by purchase history, future product or service interests, desired methods of contact, and other data points. This helps businesses reach out to customers at a good time, in the right way. When companies flood customers with too many impersonal calls, direct mail pieces or e-mails, their messaging is much more likely to be ignored.

Naturally, an important part of maintaining any CRM system is keeping customers’ contact data up to date. So, you’ll need to instruct sales or customer service staff to gently touch base on this issue at least once a year. To avoid appearing pushy, some businesses ask customers to fill out contact info cards (or request business cards) that are then entered into a drawing for a free product or service — or even just a free lunch!

Encouraging buy-in

A properly implemented CRM system can improve sales, lower marketing costs and build customer loyalty. But, as mentioned, you’ll need to train employees how to use the software to get these benefits. And buy-in must occur throughout the organization — a “silo approach” to CRM that focuses only on one business area won’t optimize results.

Establish thorough use of the system as an annual performance objective for sales, marketing and customer service employees. Some business owners even offer monthly prizes or bonuses to employees who consistently enter data into their CRM systems.

Making the right choice

There are many CRM solutions available today at a wide variety of price points. We can help you conduct a cost-benefit analysis of this type of software — based on your company’s size, needs and budget — to assist you in choosing whether to buy a product or, if you already have one, how best to upgrade it.

© 2019

Hedge Fund Execs Predict Bitcoin Price will Close 2019 at $9,659

The bitcoin price has surged a little above 114 percent in 2019 so far. But, according to a new poll, the cryptocurrency has extra fuel to sustain its upside action further.

US comparison website Finder surveyed ten FinTech capitalists, including executives from hedge funds Arca and BitBull Capital, on Friday. The portal found that a majority of them expected that bitcoin would pullback from its recently tested $8,000-level. However, they forecasted a strong rebound in June, which would push the cryptocurrency’s rate to as high as $9,659 by the end of this year.Prices of bitcoin rose impressively in 2019 following an 85 percent depreciation the previous year. The April and May trading session alone saw a 50 percent appreciation in the bitcoin rate, having risen from $4,000 to above $8,000.

At the same time, mainstream financial markets underperformed owing to escalating economic tensions between the US and China.

The Finder survey participants were quick to notice the inverse relationship between the two events. Almost half of them said mainstream investors diverted their capital from interim bearish equities to bitcoin as a sign of risk management.

Mark Pimentel, the founder, and one of the chief executives at Kronos, a high-frequency crypto trading company, admitted that they have been using bitcoin as a haven against the bearish mainstream markets, stating they were able to make substantial gains out of bitcoin’s volatile price swings.

“The cryptocurrency market is swayed by news and attention, so as bitcoin begins to rise in price again, more traders enter the market. It is much more likely for these entrants to buy bitcoin than sell. So this predictably creates price appreciation,” Pimentel said, adding that the bitcoin price could retest $20,000 in 2019.

Meanwhile, there were also who credited mainstream institutions, which have been lately building new services around the bitcoin market, as one of the main drivers behind the latest bitcoin price rally.

The bitcoin price surged by as much as 77 percent upon the conclusion of the Consensus event.

David Wills, chief operating officer at Kinetic Capital, a cryptocurrency trading firm, said the bitcoin price is due for gains because of its potential for broader adoption as a currency. The Hong Kong-based executive cited Whole Foods, an Amazon-backed retailer, and Nordstrom, a North American chain of luxury department stores, for making his case. Both the retail stores accept cryptocurrencies as payments.

“Last year, the bear market was in part caused by the fallout from many loss-making, unsuccessful initial coin offerings, and the participation by [a number of] questionable players that attracted regulatory scrutiny in cryptocurrencies,” Wills told the South China Morning Post, adding that the bitcoin industry has become more mature than before.

The bitcoin price was trading at $7,960 at the time of this writing, up 152 percent since its cycle low.

Hedge Fund Execs Predict Bitcoin Price will Close 2019 at $9,659

The bitcoin price has surged a little above 114 percent in 2019 so far. But, according to a new poll, the cryptocurrency has extra fuel to sustain its upside action further.

US comparison website Finder surveyed ten FinTech capitalists, including executives from hedge funds Arca and BitBull Capital, on Friday. The portal found that a majority of them expected that bitcoin would pullback from its recently tested $8,000-level. However, they forecasted a strong rebound in June, which would push the cryptocurrency’s rate to as high as $9,659 by the end of this year.Prices of bitcoin rose impressively in 2019 following an 85 percent depreciation the previous year. The April and May trading session alone saw a 50 percent appreciation in the bitcoin rate, having risen from $4,000 to above $8,000.

At the same time, mainstream financial markets underperformed owing to escalating economic tensions between the US and China.

The Finder survey participants were quick to notice the inverse relationship between the two events. Almost half of them said mainstream investors diverted their capital from interim bearish equities to bitcoin as a sign of risk management.

Mark Pimentel, the founder, and one of the chief executives at Kronos, a high-frequency crypto trading company, admitted that they have been using bitcoin as a haven against the bearish mainstream markets, stating they were able to make substantial gains out of bitcoin’s volatile price swings.

“The cryptocurrency market is swayed by news and attention, so as bitcoin begins to rise in price again, more traders enter the market. It is much more likely for these entrants to buy bitcoin than sell. So this predictably creates price appreciation,” Pimentel said, adding that the bitcoin price could retest $20,000 in 2019.

Meanwhile, there were also who credited mainstream institutions, which have been lately building new services around the bitcoin market, as one of the main drivers behind the latest bitcoin price rally.

The bitcoin price surged by as much as 77 percent upon the conclusion of the Consensus event.

David Wills, chief operating officer at Kinetic Capital, a cryptocurrency trading firm, said the bitcoin price is due for gains because of its potential for broader adoption as a currency. The Hong Kong-based executive cited Whole Foods, an Amazon-backed retailer, and Nordstrom, a North American chain of luxury department stores, for making his case. Both the retail stores accept cryptocurrencies as payments.

“Last year, the bear market was in part caused by the fallout from many loss-making, unsuccessful initial coin offerings, and the participation by [a number of] questionable players that attracted regulatory scrutiny in cryptocurrencies,” Wills told the South China Morning Post, adding that the bitcoin industry has become more mature than before.

The bitcoin price was trading at $7,960 at the time of this writing, up 152 percent since its cycle low.

The most popular stocks for hedge fund managers are crushing the market

Sometimes following the crowd can be a profitable strategy, particularly if that crowd is composed of hedge fund managers who have been beating the market.

While investing often seems like a contrarian game where going against the flow feels like the better bet, the reality is that investors who bought the most-favored stocks have seen the best returns, according to a Goldman Sachsanalysis of some 855 hedge funds whose assets total $2.1 trillion of the industry’s $3.2 trillion total.

“Despite the strong track record of popular hedge fund stocks, investors often view high ownership as a negative trait when evaluating stock prospects. Clients often ask us to include hedge fund ownership data in stock screens, expressing a preference for buying ‘under-owned’ stocks,” Goldman strategist Ben Snider said in a report for clients. “In fact, during the past decade hedge fund popularity has been a more useful criterion for selecting stocks than valuations.”

Overall, the funds in the firm’s coverage universe have returned 8% year to date.

But the basket of stocks with the most popular long positions and the highest concentrations have performed far better, returning 18% to easily outdistance the S&P 500, which had gained 15% through the first quarter, the period during which Goldman conducted its review.

That means companies like Amazon, Facebook and Microsoft, each of which posted gains exceeding 25% in the first quarter.

That hasn’t been the case just this year.

Since 2001, stocks appearing in the top 10 portfolio positions have beaten the S&P 61% of the time, with an average excess return of 0.55 percentage points. Funds that hold the most shares of those stocks have beaten the market 63% of the time, with an average excess return of 1.96 percentage points.

“The signals from hedge fund popularity and valuation have been particularly useful in combination, especially for investors with slightly longer investment horizons. During the past decade, popular stocks have generally outperformed unpopular stocks across both 3- and 12-month investment horizons,” Snider wrote.

The results come at a time when hedge funds overall have been criticized for their high fees and less-than-market returns.

Looking at the entire industry and its nearly 10,000 funds, the gain through April was 7.2%, as measured by the HFRI Fund Weighted Composite Index, compared with the S&P 500′s total return of 18.2% through the period.

That makes stock selection all the more important.

Oil advances as US jobs growth adds to supply strains

 Oil eked out a gain on Friday as a forecast-topping US jobs report signaled a strong domestic economy to go along with the supply disruptions squeezing global crude markets.

Futures in New York rose 0.2 percent after unemployment unexpectedly fell to a 49-year low in the US, with cooler-than-projected wage gains.

Crude nonetheless recorded a loss for the week as investors digested a big surge in US production.

“The demand picture has been one possible weak leg for petroleum and this helps to alleviate that concern,” said Kyle Cooper, a consultant at Ion Energy Group in Houston, Texas. “You’ve got minimal-to-moderate inflation with solid growth — that’s your Goldilocks economy.”

West Texas Intermediate crude for June delivery climbed US$0.13 to US$61.94 a barrel at the close of trading on the New York Mercantile Exchange. It finished the week down 2.2 percent, the second straight weekly decline after seven straight gains.

Brent for July settlement rose US$0.10 to US$70.85 a barrel on the London-based ICE Futures Europe exchange. It was down 1.8 percent for the week.

The US hiring numbers accomplished what an attempted coup in Venezuela, tougher sanctions on Iran and disrupted flows from Russia have failed to do in the past few days: push oil markets into positive territory.

Crude’s indifference to the array of threats reflected that world markets appear comfortably supplied for the time being, largely thanks to the ongoing surge in US production, which hit a new record last week.

Prices have also been capped by worries about the global economy, with manufacturing data from China and the US showing that growth remains fragile.

Brent increased 27 percent in the first quarter of this year, its strongest in a decade, on production cutbacks by OPEC and its partners, but lately the rally has lost steam.

“It shows that in an age of OPEC-led production restraint and geopolitical concerns, surging US oil output is more than capable of stunting upward pricing pressures,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd in London.

In OPEC member Venezuela, Venezuelan National Assembly President Juan Guaido on Tuesday launched an uprising against Venezuelan President Nicolas Maduro with the backing of the US government.