Tag Archives: Rage
LONDON (Reuters) – Global investors remain overwhelmingly bullish on U.S. and Chinese tech shares, while short positions on emerging equities are growing increasingly popular, Bank of America Merrill Lynch’s latest monthly fund manager survey showed on Tuesday.
Traders on the floor of the New York Stock Exchange in New York, U.S., April 3, 2018. REUTERS/Lucas Jackson
Investors picked “Long FAANG and BAT” as the “most crowded” trade for the seventh straight month, BAML’s August survey found, referring to U.S. tech giants Facebook, Amazon, Apple, Netflix and Google, and China’s Baidu, Alibaba and Tencent.
Tech has kept its crown, even though results-driven declines by Facebook and Twitter last month triggered anxiety over the mega-cap stocks responsible for the lion’s share of stock market gains in the U.S. and China.
Going short emerging-market equities was the second most popular trade, according to the survey, which was conducted between Aug. 3 and Aug. 9 – just before Turkey’s lira plunged 16 percent against the dollar on Friday.
Investors had a small underweight on EM equities, but BAML said prior EM crisis lows saw investors’ underweight at -27 percent, versus -1 percent today – suggesting investors could slash allocations a lot further from here.
Among risks to global markets, investors said for the third month in a row that trade war was the most concerning.
They continued to position for a global monetary tightening cycle led by the U.S. Federal Reserve. A net 54 percent of investors were underweight bonds, while 20 percent were overweight global banks, which gain from higher interest rates.
Overall, global investors became more cautious in August, raising their cash allocation to 5 percent from 4.7 percent. The increased caution was tempered with a more positive outlook on the profit cycle, with a net 5 percent saying profits will improve.
European fund managers were relatively more bullish, cutting their cash allocations to 4.3 percent from 5 percent.
The proportion of European investors expecting stronger economic growth rose to the highest since April, and the share expecting a recession in the next 12 months also fell to its second lowest ever.
U.S. EQUITIES IN FAVOR, UK STOCKS DUMPED
Investors’ allocation to U.S. equities rose to the biggest overweight since January 2015, making the U.S. the top equity region for the first time in five years as Wall Street stocks delivered strong earnings.
The U.S. was the most favorable region in terms of corporate profits, according to 67 percent of surveyed investors – the highest proportion in 17 years.
Meanwhile, investors pulled money from UK equities, which saw the biggest one-month drop in allocations since May 2016 as concerns of a no-deal Brexit rose.
After six months of falling allocations to euro zone equities, investors added to the region again.
As the S&P 500 volatility gauge .VIX hit its lowest since January on Aug 9, surveyed investors showed the lowest conviction on record for buying volatility.
Accordingly, going long volatility would be a staunchly contrarian bet, going against the grain of current investor thinking, while BAML also suggested “long BRIC/short FAANG” and “long bonds” as trades for the contrarian investor.
Reporting by Helen Reid; editing by Sujata Rao, Larry King
The largest and most destructive fire burning in California continues to grow, consuming dry brush as it races not just through but across the canyons north of Los Angeles. Strong winds and dry conditions mean flames can leap large distances, prompting thousands to evacuate their homes. The Thomas Fire has now spread from Ventura County into Santa Barbara County, burning up 230,000 acres—an area larger than New York City and Boston combined. The out of control blaze is on track to become one of the largest in California history.
So firefighters are using the largest tools they have to tackle it, including one that’s more than 200 feet long, and does its work from just 200 feet above the ground.
“We avoid flying through smoke at all costs, but you can smell the fire 200 miles out, even at 20,000 feet,” says Marcos Valdez, one of the pilots of the Global Supertanker, a Boeing 747 modified to fight the fiercest of fires. The jumbo jet can drop 19,200 gallons of fire retardant liquid per trip, nearly double the capacity of the next largest air tanker, a McDonnell Douglas DC-10. Fully stocked, the plane weighs in at 660,000 pounds, comfortably under its 870,000-pound max takeoff weight.
Step inside (which you can do in the interactive 3-D model below) and you’ll see that the upper floor looks pretty normal, with the cockpit and a few seats. Head down the stairs to the main floor, though, and you’ll see the key changes its owner, Global Supertanker LLC, made when it converted the Japan Airlines passenger plane to a firefighter in 2016: In what looks like the interior of a submarine, you’ll find eight cylindrical white tanks in two rows.
Holding the fire suppressant liquid in separate tanks means the 747, aka The Spirit of John Muir, can make up to eight segmented drops on multiple small fires, or put down a solid two miles of fire line, to try to protect property or contain a fire. The liquid drops through a big hose, through a series of manhole-cover-sized circular nozzles under the plane, near the back. (If you use the “Dollhouse” view on the 3-D model, you can see some of that detail on the very lower deck.)
The plane is based in Colorado Springs, but its owner contracts it out to fire agencies in need. This week it’s flying out of Sacramento, in the northern part of the state. That’s because it can carry so much flame retardant that picking it up in Southern California wouldn’t leave enough for the smaller aerial firefighters. Plus, with a 600-mph cruise speed, it can reach the perimeter of the Thomas fire in just 38 minutes.
The 747 and other fixed wing aircraft sat out the early days of the fight against these fires, because high wind speeds would have blown their liquid retardant unpredictably off course. Though the pink stuff won’t damage people or property (good news for this guy), pilots make an effort to avoid dumping it on firefighters on the ground. The 747 can actually lay such a long line of retardant that it can be used to draw a line to safety for people trapped in a “burn-over” situation, where flames threaten to engulf them.
When the Supertanker reaches a fire, it doesn’t just drop down and fire away. The whole operation is a carefully orchestrated affair. Valdez, the pilot, starts by flying at 1,000 feet up, watching a “show me” flight by a lead plane, usually a Rockwell OV-10 Bronco or Beechcraft King Air. That has likely been in the air for hours, and directs each tanker aircraft exactly where to make its drops, pointing out hazards like power lines or tall rocks over the radio. “They’re using signals like ‘Start at this tree that’s split,’ ‘Fly on the right flank of the fire,’ and ‘I want to you stop at this rock that looks like a bear,’” Valdez says.
Then Valdez pushes the yoke forward until he and his crew are flying 200 to 300 feet above the ground—in a jet whose wingspan is just over 200 feet. Valdez plays down the terror, comparing it to driving next to a concrete barrier down the center of a highway. You know it’s there, and that one wrong move could kill you, but you just keep your heading and your cool.
The whole drop is over in 10 minutes, and then it’s time to head back to Sacramento, making for a two-hour roundtrip. On Friday, the Supertanker performed three drops on the Thomas fire—each gratefully received by the firefighters trying to stop the flames reaching more property, and people.