Bundle of investment news: index problems and robot trucks

Пачка инвестновостей: проблемы индексов и роботы-грузовики

In S&P 500 company, may be, add for money. In the US, people are fired not because, that everything is bad in the economy, and therefore, that it grows and changes. TuSimple approached world domination.

Disclaimer: when we talk about, that something has grown, we mean comparison with the same quarter a year earlier. Since all US issuers, then all results are in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. Hopefully, you know, what to do.

How companies pay to get into S&P 500

Recently in the West there was an article “Is Stock Index Membership for Sale?», probabilities, that companies pay the rating agency S&P (NYSE: SPGI) for inclusion in the index S&P 500.

The authors of the article suggested, that the issuer's chances of getting into this index are greatly increased in the case of, if the issuer pays S&P for assessing the credit rating of his bonds or actively using other paid services S&P.

Strictly speaking, directly S&P is not accused of anything - it just says, that companies are buying from S&P credit ratings in hopes, that it will increase their chances of being indexed. Interestingly: company, supposedly indexed in this way, show then not very good growth in financial performance.

The benefits of companies from getting into the index are obvious: the boom in index investing has led to, that index funds began to play a huge role in the market, infusions of which can seriously pump up the capitalization of individual companies. The appearance of a new company in the index automatically leads to an inflow of money into its shares..

Benefit S&P is also understandable: they buy credit ratings from her, maintaining the stability of this part of the company's business.

Representatives S&P, of course, all vehemently deny. However, Considering, that even judges and regulators in the United States are at risk of dismissal and litigation, for not very big money considering the cases of issuers, whose shareholders include, won't be much of a surprise, if the conclusions of the authors of the article turn out to be true.

All this once again reminds of the problem "who will evaluate the evaluator".

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for example, many fund managers are guided by MSCI indices, but the quality of these ratings is not perfect. The company fell for that, that included Chinese companies in its indices: her business in China was under pressure from the Chinese government.

Actually, we discussed the problem of honesty of rating agencies in the investment idea on S&P Global: companies pay rating agencies to rate their bonds, which creates a serious conflict of interest. If the rating agency does not give ratings that suit the customer, then customers will go to their competitors, who will put the "correct" ratings.

maybe, the discussion around the article about the index will attract the attention of regulators, but the topic of bond ratings has been on the surface for a long time, and no action has yet been taken. All this led to the appearance of a mountain of loan obligations for companies., which, possibly, will not be able to close them.

To all, who loves index investments, worth thinking about, who generates these indices and for what purposes. It will be interesting, if the scandal around the conclusions from this article develops and then the funds, oriented to S&P 500, will be forced to react somehow.

Пачка инвестновостей: проблемы индексов и роботы-грузовики

Vaccines and warehouses: how the American labor market is changing

Challenger Company, Gray & Christmas, providing professional services in the field of management and personnel training, shared her analysis of the US labor market. Here's what's interesting.

Downsizing plans. In October 2021, American employers announced plans to cut the number of jobs by 22 822 thousands - what's on 27,5% more, than in September. About 22% of the total number of laid-off employees were, those who refused to get the coronavirus vaccine. The rest of the layoffs are related to business restructuring and optimization or bankruptcies.

At this point, the most interesting is the significant percentage of layoffs of workers due to vaccinations. This topic will remain very hot in the next few months., because of which the cost of labor for most companies is at risk of rising even more, which will have an extremely negative impact on their reporting.

At the same time, one can see, that large enough layoffs occur without negative economic news - it's just that the corporate sector, for the most part, successfully manages without a surplus of labor and increases returns, reducing costs, among other things, and for employees. In this context, ideas by company, dealing with work automation, acquire additional attractiveness.

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Seasonal workers. Retail, transport and logistics companies plan to hire over 849 thousand seasonal workers for the November-December holidays - which is 11% more, than in the same period 2020. All of this in general correlates well with forecasts for the growth of holiday spending in the retail sector.. Therefore, you can try to make money on companies, logistics related: warehouses and related services, - as well as on the supply of equipment in this area.

Not too dimple: trucker robots take over the roads

At the self-driving truck software manufacturer TuSimple (NASDAQ: TSP) another success: the company is preparing to launch commercial flights for UPS in North Carolina and Florida. Considering, that TuSimple is still mainly working on R&D and it has little pure business activity, this is a significant success, which brings the company closer to the mass reception of its technology by carriers.

All this is happening against the backdrop of a severe shortage of truck drivers in the United States.: the country needs to get 80 thousand new truckers from somewhere. However, and on the other side of the ocean the same problems: like in the UK, and in continental Europe. So mass automation of cargo transportation - to be!

By the way, the idea for TuSimple worked - at this pace it will be possible to make another one.

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