Tesla stock skyrocketed 14% on Monday on speculations that it will be added to the S&P 500. However, the shares plunged into the red briefly in the afternoon in a wild day of trading before climbing back into the green before the market closed. Tesla stock approaches $1,800 on S&P 500 speculations Tesla Moody’s Investors Service (“Moody’s”) today extended its review on the ratings of Guangxi Financial Investment Group Co., Ltd (GXFIG). GXFIG’s Ba1 long-term corporate family rating (CFR), Ba1 senior unsecured rating and b1 Baseline Credit Assessment (BCA) remain under review for NHRA drag-racing association faces financial struggles and works to restart racing following COVID-19 shutdown. July 20, 2020 Second-quarter highlights• Sales amounted to EUR 4.4 billion, with a 6% comparable sales decrease• Comparable order intake… Investors need to brace themselves for a raft of earnings reports and figure out how the coronavirus’s current spread will impact the future of the stock market.
Tesla stock skyrocketed 14% on Monday on speculations that it will be added to the S&P 500. However, the shares plunged into the red briefly in the afternoon in a wild day of trading before climbing back into the green before the market closed.
Tesla stock (NASDAQ:TSLA) soared to a new record high of $1,795 a share, carrying the company’s market capitalization to as high as $321 billion, according to FactSet. That made the automaker the tenth biggest U.S. stock based on market value.
The shares have been on an impressive run. Year to date, Tesla stock is up more than 300%. The company passed Toyota to become the most valuable automaker in the world earlier this month. In July alone, the shares are up by over 55% since the company beat delivery expectations for the second quarter.
Tesla delivered about 90,950 vehicles during the second quarter, while the FactSet consensus was at 72,000. The automaker will report its second-quarter earnings on July 22, and investors now expect it to report a fourth consecutive quarter of GAAP profits. That could make Tesla stock eligible to be included in the S&P 500.
According to CNBC, some like Larry McDonald of The Bear Traps Report believe Tesla stock is climbing because investors expect it to be added to the S&P 500 rather than based on fundamental strength. He said in a recent note that by buying Tesla stock now, some are forcing the S&P Indexes to boost its weighting. That will force exchange-traded funds and indexes to pay up by buying even more shares.
“Then the hot money exits, leaving indexes holding the bag,” he said.
In a note this morning, ARK Invest analysts said that during the first half of this year, Tesla’s share of the battery electric vehicle market in China hit 21%, compared to the 6% it was at last year and 2% in 2018. They said it looks like concerns about the automaker’s ability to sell lower-end cars in China were misplaced.
Globally, Tesla’s market share climbed by about 300 basis points from 23% last year to 26%. ARK Invest analysts said investors used to ask them what will happen to the automaker when traditional automakers start selling electric vehicles. However, the firm now wonders how high Tesla’s market share will go. Their base case assumption is at only 19% in 2024.
Short sellers have continued to bet against Tesla. Data from S3 Partners indicates that Tesla is the biggest short position on record for any U.S. company at $19 billion.
According to Forbes, Morningstar estimates that Tesla stock is 91% overvalued. The firm assigns a fair value estimate of $731 to the shares. Analyst David Whiston doesn’t expect the company to reach mass-market volumes until the next decade. He pointed out that “even a pandemic causes no fear for the market with this stock,” adding that it’s important to keep the hype about the company in perspective compared to its “limited, though now growing production capacity.”
Video: Top 5 Stocks Among Hedge Funds At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, on one site we found out that NBA champion Isiah Thomas is now the CEO of this cannabis company. The same site also talks about a snack manufacturer that’s growing at 30% annually. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Hedge fund sentiment towards Tesla reached its all time high at the end of 2019 and Tesla shares more than tripled this year. We are trying to identify other EV revolution winners, so if you have any good ideas send us an email. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Guangxi Financial Investment Group Co., Ltd — Moody’s extends review for downgrade on Guangxi Financial Investment Group
Announcement: Moody’s extends review for downgrade on Guangxi Financial Investment Group
Hong Kong, July 20, 2020 — Moody’s Investors Service (“Moody’s”) today extended its review on the ratings of Guangxi Financial Investment Group Co., Ltd (GXFIG).
GXFIG’s Ba1 long-term corporate family rating (CFR), Ba1 senior unsecured rating and b1 Baseline Credit Assessment (BCA) remain under review for downgrade.
GXFIG’s ratings have been under review for downgrade since 8 April 2020. The extension of the review for downgrade recognizes the continued progress GXFIG and GIG have made in restructuring including the recently announced transfer of 51% of equity in Guangxi Investment Group Financial Holding Company Ltd. (GIGFHC) to GXFIG. The announced transfer reinforces the strategic importance of GXFIG’s activities to the regional economy where the size of financial services-related assets is limited. The extension of the review also recognizes the funding support GIG has given to GXFIG including providing guarantees on the two recently issued onshore bonds.
However, there still exist uncertainties around following items which Moody’s will consider during the review period: 1) the degree of downward pressure on GXFIG’s asset quality and profitability as a result of the coronavirus outbreak and economic downturns, 2) the impact of governmental actions to support small and micro enterprises in the company’s main markets; 3) GXFIG’s progress on repayment/refinancing plans for the sizable amount of debt maturing and obligations to repurchase minority interests in the next twelve months, and 4) the impact of restructuring including asset transfers and organizational changes on GXFIG’s credit profile and level of government support.
GXFIG has provided payment relief measures to many of the borrowers while the non-performing loan ratio has stayed largely unchanged since the year-end 2019. In addition, Moody’s does not expect the transfer of 51% equity in GIGFHC — which also owns microloan and leasing subsidiaries — will weaken the overall asset quality at GXFIG. However the payment relief measures could eventually translate into increased non-performing loan ratios and reduced profitability when the company classifies the still outstanding payments as overdues after the grace period.
On the debt maturities coverage front, GXFIG has a large amount of debt maturing in the next twelve months including the minority interests in the selected subsidiaries that GXFIG will need to repurchase as well as a USD500 million bond maturing in January 2021. The amount of debt maturing is considerably higher than the unrestricted cash GXFIG has. While GXFIG has recently benefited from the guarantee from GIG in the onshore bond markets and also has access to the undrawn credit facilities from a diversified group of banks, the low level of debt maturities coverage and reduced free cash flow generation constrain the company’s financial flexibility. The company’s refinancing plans for the USD bond will also be subject to market conditions and execution risks.
GXFIG continues to maintain sufficient capital adequacy which will continue to be supported by capital injections from the provincial government. As part of the restructuring plan, the provincial government has injected RMB800 million and committed to another RMB700 million as the company prepares itself for applying a financial holding company license. However, the change from a state-owned enterprise directly under the provincial government to a subsidiary of another SOE weakens the level of government intervention in GXFIG and potentially the level of government support in times of stress.
Given that GXFIG’s ratings are under review for downgrade, it is unlikely that they will be upgraded in the near term. GXFIG’s BCA could be affirmed at b1 and its ratings could be confirmed at Ba1 if there is evidence that (1) GXFIG’s asset quality and profitability do not deteriorate materially from the impact of economic downturn; (2) the company’s liquidity profile improves with a higher debt maturities coverage and refinancing risk decreases.
GXFIG’s BCA could be downgraded if: 1) the company’s asset quality and profitability deteriorates materially as a result of the impact of coronavirus and economic downturn; (2) the assets that GXFIG will receive as part of the restructuring would significantly add negative pressure on the company’s asset quality, profitability and capital adequacy; (3) the company’s debt maturities coverage and liquidity profile deteriorates, and the company faces difficulties in executing its refinancing plans for the USD bond; or (4) the company’s capital adequacy weakens with its tangible common equity/tangible managed assets ratio declining to below 12%.
GXFIG’s ratings could also be downgraded if the BCA is downgraded or if Moody’s believes that support from the Guangxi provincial government in times of need will weaken as a result of reduced importance of the company’s activities to the regional economy or lower political linkage and/or government intervention.
The methodologies used in these ratings were Finance Companies Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1187099, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.
Guangxi Financial Investment Group Co., Ltd is headquartered in Nanning, Guangxi. The company reported assets of RMB84.5 billion as of year-end 2019.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Lan Wang, CFA Analyst Financial Institutions Group Moody's Investors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077 Sophia Lee, CFA Associate Managing Director Financial Institutions Group JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077 Releasing Office: Moody's Investors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077
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NHRA’s financial and restart struggles post COVID-19 shutdown
BROWNSBURG, Ind. — Two-time Funny Car world champion Matt Hagan heard the stories throughout the pandemic-forced shutdown.
Furloughed crew members sought out odd jobs to pay bills. Some of his teammates started driving cement trucks. And Hagan thought about how his father, a car dealership owner, continued paying employees despite losing millions during the recession that hit in 2008.
Eventually, Hagan concluded, the world’s premier drag-racing series must get back to work.
“A lot of people, like my wrench guys, they don’t have anything else,” Hagan said as the NHRA cranked back up in Indianapolis last weekend. “So I appreciate the NHRA taking the steps needed to keep these guys employed and say we’re taking a step forward, toward getting back to normal.”
With their series shut down for 138 days, NHRA officials spent months revising schedules, grappling with how to bring fans back and reassuring sponsors it would be safe — even with the potential of another shutdown if the recent spike in positive COVID-19 tests continues.
After the first two restart plans fell apart, last weekend went smoothly as fans milled about Lucas Oil Raceway over three sun-drenched days. The series returns to the same venue for Summernationals this weekend.
NHRA President Glen Cromwell acknowledged roughly 75% of series’ employees went on furlough and those who didn’t took pay cuts.
The most glaring difference last weekend was the absence of John Force Racing amid speculation the team had lost too many sponsorship dollars to compete. Team spokeswoman Sara Slaughter declined comment.
Still, Cromwell insists the series is in a strong position because none of its primary sponsors walked away.
“I think sponsors at all levels are evaluating their investments, but I think that speaks volumes about the NHRA and a lot of the race team sponsors that they stuck by us,” he said. “They believe in the sport. The NHRA is in a stable position, and I think we’re in a good place.”
At the grassroots level, drag racing might be in the strongest position of any racing series.
While only about 20% of race venues in the U.S. and Canada are drag strips, Tim Frost, publisher of National Speedway Directory, estimates 250,000 of the roughly 400,000 American racers are dragsters.
The reason: It’s cheaper and draws larger fields, which leads to bigger purses.
Can the NHRA continue to draw big crowds under the new guidelines?
Fans must pass temperature checks and wear face coverings before entering and ticket sales have been limited to 10-15% of Indy’s capacity, which normally seats 30,000 to 40,000 for U.S. Nationals in September.
At least it’s a start.
“It feels good, it feels really good to be back doing what we do and the fans have been so supportive,” said Antron Brown, a three-time top fuel world champion. “You see them out here, coming up to you to show their support. It just feels good to come back and give them some action.”
Some die-hard fans couldn’t wait to experience the roar of the chest-thumping 11,000-horsepower engines or breathe in the indescribable mixture of burning rubber and burning fuel.
Organizers did not announce an official attendance for last weekend. According to sportsmediawatch.com, a rare NHRA appearance on the FOX broadcast network drew a rating of a 0.46, or 689,000 viewers, down from a 0.6 rating and 920,000 viewers from FOX’s first telecast last season.
Series officials are hoping for better results in Colorado, Minnesota, Kansas and Atlanta before returning to Indy in early September for the U.S. Nationals and the rescheduled All-Stars competition.
And with payouts and jobs on the line, the NHRA needs bigger crowds, better television ratings and steady sponsorship to stay on schedule as it tries to thrive in a sports world starved for competition.
“We have to have fans at the race because they pay the purses and we need to have sponsors to run these cars,” Hagan said. “There comes a time when you have make a decision about what you’re going to do. Nobody wants to lose lives. But it’s almost like if you don’t do this, it gets to a point where starving to death is a lot more scary than catching the virus.”
More AP auto racing
Author: Associated Press
Jul 19th 2020 at 2:30PM
Philips delivers Q2 sales of EUR 4.4 billion, with 6% comparable sales decrease; income from continuing operations of EUR 213 million, Adjusted EBITA margin of 9.5% and operating cash flow of EUR 558 million
July 20, 2020
• Sales amounted to EUR 4.4 billion, with a 6% comparable sales decrease
• Comparable order intake increased 27%
• Income from continuing operations was EUR 213 million, compared to EUR 260 million in Q2 2019
• Adjusted EBITA margin was 9.5% of sales, compared to 11.8% of sales in Q2 2019
• Income from operations amounted to EUR 229 million, compared to EUR 350 million in Q2 2019
• EPS from continuing operations (diluted) amounted to EUR 0.23; Adjusted EPS amounted to EUR 0.35, compared to EUR 0.42 in Q2 2019
• Operating cash flow improved to EUR 558 million, compared to EUR 390 million in Q2 2019
• Free cash flow increased to EUR 311 million, compared to EUR 174 million in Q2 2019
Frans van Houten, CEO
“As the global societal and economic impact of the COVID-19 outbreak intensified in the second quarter of 2020, we continued to focus on our triple duty of care: meeting critical customer needs, safeguarding the health and safety of our employees, and ensuring business continuity. In close collaboration with our suppliers and partners, we have steeply ramped up the production volumes of acute care products and solutions to help diagnose, treat, monitor and manage COVID-19 patients. Our field service engineers have been supporting healthcare providers around the world throughout these testing times. Under the circumstances, I am pleased at the way we have performed and I am grateful and proud of how all our employees have stepped up.
In the quarter, Philips’ sales declined 6% on a comparable basis and we delivered an Adjusted EBITA margin of 9.5%. Comparable order intake grew a further 27% on the back of double-digit growth in the previous quarter, driven by CT imaging systems, hospital ventilators and patient monitors. As anticipated, COVID-19 caused a steep decrease in consumer demand and postponement of installations in hospitals, as well as elective procedures, resulting in a 19% comparable sales decrease for our Personal Health businesses and a 9% decline for our Diagnosis & Treatment businesses. This was partly offset by a strong 14% comparable sales growth for our Connected Care businesses.
We expect to return to growth and improved profitability for the Group in the second half of the year, assuming we can convert our existing order book for the Diagnosis & Treatment and Connected Care businesses, elective procedures normalize, and consumer demand gradually improves. Consequently, for the full year 2020 we continue to aim for a modest comparable sales growth and Adjusted EBITA margin improvement.
Looking ahead, our mission is more relevant than ever. Our strategy to transform the delivery of care along the health continuum, leveraging informatics and remote care capabilities, along with our innovative systems and services, has been validated during this crisis. I am convinced that Philips is well positioned to serve the current and future needs of hospitals and health systems.”
Business segment performance
The Diagnosis & Treatment businesses recorded a 9% comparable sales decline due to the postponement of installations and elective procedures. Although Diagnostic Imaging sales were in line with Q2 2019, Ultrasound showed a mid-single-digit decrease, and Image-Guided Therapy a double-digit decline. Comparable order intake showed a double-digit decrease. The Adjusted EBITA margin decreased to 8.6%, mainly due to the sales decline.
Comparable sales in the Connected Care businesses increased 14%, with double-digit growth in Sleep & Respiratory Care and mid-single-digit growth in Monitoring & Analytics. Comparable order intake more than doubled, driven by strong demand for patient monitors and hospital ventilators. The Adjusted EBITA margin increased to 17.8%, as additional investments to ramp up production were more than offset by operating leverage.
The Personal Health businesses recorded a comparable sales decline of 19%, with all businesses declining due to significantly decreased consumer demand. The Adjusted EBITA margin declined to 5.6%, due to the sales decline, partly offset by cost savings.
Philips’ ongoing focus on innovation and partnerships resulted in the following key developments in the quarter:
• Highlighting its strength in strategic partnerships to enhance patient care and improve care provider productivity, Philips signed 14 new agreements in the quarter. For example, Philips and the US Department of Veterans Affairs entered a 10-year agreement to expand their tele-critical care program, creating the world’s largest system to provide veterans with remote access to intensive care expertise, regardless of their location. In the Netherlands, Philips and Flevo Hospital signed a 10-year strategic partnership agreement to support precision diagnosis and optimize workflows and patient pathways, while driving efficiencies and cost optimization.
• In collaboration with its partners and suppliers, Philips tripled the production of its hospital ventilators in the quarter and is on track to achieve the planned four-fold increase to 4,000 units per week in July 2020, supporting the treatment of COVID-19 patients in the most affected regions around the world.
• Philips launched several new monitoring solutions for the Intensive Care Unit (ICU), the general ward and the home that feature remote monitoring capabilities and advanced analytics. These include Philips’ IntelliVue Patient Monitors MX750/MX850 for the ICU, Philips’ Biosensor BX100 for early patient deterioration detection in the general ward, and in collaboration with BioIntelliSense, the BioSticker medical device to help monitor at-risk patients from the hospital to the home.
• University of Kentucky HealthCare teamed up with Philips to implement the company’s tele-ICU technology to enhance patient care and improve utilization and patient flows across 160 ICU beds at the academic medical center’s two hospitals. Leveraging Philips’ acute telehealth platform, eCareManager, UK HealthCare is implementing the state’s first centralized virtual care model to help nurses detect risk of patient deterioration, so they can intervene earlier and help improve care outcomes.
• Philips received an industry-first 510(k) clearance from the FDA to market a wide range of its ultrasound solutions – including CX50 and Lumify – for the management of COVID-19-related lung and cardiac complications. Portable ultrasound solutions in particular have become valuable tools for clinicians treating COVID-19 patients, due to their imaging capabilities, portability and ease of disinfection.
• Supporting the increased demand for flexible ICU capacity, Philips introduced its new mobile ICUs in India. The ICUs can be furnished with a range of medical equipment, including ventilators, defibrillators, and patient monitoring. In the Philippines, Philips introduced a modular diagnostic imaging cabin with a CT or diagnostic X-ray system for rapid deployment.
• Complementing Philips Sonicare’s existing teledentistry services for patients, Philips and dental technology company Toothpic announced a new teledentistry platform for dental professionals. The multi-service platform provides a tool to build direct patient engagement, acquisition and retention while improving office efficiency, in-chair time and remote care.
In the second quarter, procurement savings amounted to EUR 57 million. Overhead and other productivity programs delivered savings of EUR 51 million. As a result, Philips is on track to deliver over EUR 400 million productivity savings for 2020 and EUR 1.8 billion productivity savings for the Group for the 2017-2020 period.
Executive Committee update
On July 16, Philips announced the appointment of Deeptha Khanna as the Chief Business Leader of the Personal Health businesses, effective July 20, 2020, and the appointment of Edwin Paalvast as Chief of International Markets, effective August 1, 2020. Ms. Khanna and Mr. Paalvast will become members of Philips’ Executive Committee, reporting to Philips CEO Frans van Houten.
Ms. Khanna joins Philips from Johnson & Johnson to lead its Personal Health businesses, which were temporarily led by Frans van Houten. Mr. Paalvast joins Philips from Cisco Systems, and will succeed current Chief of International Markets Henk de Jong, who has been appointed as CEO of Philips’ EUR 2.3 billion Domestic Appliances business, effective August 1, 2020. As announced in January 2020, the Domestic Appliances business is being separated from Philips, a process that is expected to be completed in the third quarter of 2021. Mr. de Jong will continue to report to Frans van Houten and remain a member of the Executive Committee.
Share buyback program
At the end of the first quarter of 2020, Philips had completed 50.3% of its EUR 1.5 billion share buyback program for capital reduction purposes that was announced on January 29, 2019. In line with the company’s announcement on March 23, 2020, Philips has executed the second half of the program through individual forward transactions with settlement dates extending into the second half of 2021. Further details can be found here.
In June 2020, Philips completed the cancellation of 3,809,675 shares that were acquired as part of the share buyback program mentioned above.
In July 2020, Philips issued a total number of 18,080,198 new common shares for settlement of the 2019 dividend. After deduction of treasury shares, this results in a total number of outstanding shares of 909,395,209, compared to 909,194,188 shares in 2019 following the settlement of the 2018 dividend.
Philips’ Emergency Care and Resuscitation (ECR) business resumed manufacturing and shipping of external defibrillators for the US, following notification from the FDA that the injunction prohibiting those activities has been lifted. Philips continues to comply with the terms of the Consent Decree, which remains in effect, and includes ongoing regulatory compliance monitoring and facility inspections of the ECR business and of Philips’ other patient care businesses by the FDA. In connection with the ECR portfolio, Philips received FDA pre-market approval (PMA) for the HeartStart FR3  and HeartStart FRx  automated external defibrillators (AEDs), and their supporting accessories, including batteries and pads.
In connection with the COVID-19 pandemic, Philips is working with the FDA’s Emergency Response and Product Evaluation teams to provide them with relevant information, such as Philips’ production ramp-up and availability of acute care products and solutions to combat COVID-19. Philips has obtained authorizations through the FDA’s Emergency Use Authorization (EUA) process for the expanded use of several of its devices during the COVID-19 public health emergency, including for the Philips IntelliVue Patient Monitors MX750/MX850 and its IntelliVue Active Displays AD75/AD85. Moreover, Philips has received FDA 510(k) clearances to market its Biosensor BX100 for early patient deterioration detection in the general ward, and to market a wide range of its ultrasound solutions for the management of COVID-19-related lung and cardiac complications.
 Model 861388 and Model 861389
 Model 861304
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 81,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.
Forward-looking statements and other important information
Forward-looking statementsThis document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items.
Examples of forward-looking statements include: statements made about the strategy; estimates of sales growth; future Adjusted EBITA; future restructuring, acquisition-related and other costs; future developments in Philips’ organic business; and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
These factors include but are not limited to: changes in industry or market circumstances; economic and political developments; market and supply chain disruptions due to the COVID-19 outbreak; Philips’ increasing focus on health technology; the realization of Philips’ growth ambitions and results in growth geographies; successful completion of divestments such as the divestment of our Domestic Appliances businesses; lack of control over certain joint ventures; integration of acquisitions; securing and maintaining Philips’ intellectual property rights and unauthorized use of third-party intellectual property rights; compliance with quality standards, product safety laws and good manufacturing practices; exposure to IT security breaches, IT disruptions, system changes or failures; supply chain management; ability to create new products and solutions; attracting and retaining personnel; financial impacts from Brexit; compliance with regulatory regimes, including data privacy requirements; governmental investigations and legal proceedings with regard to possible anticompetitive market practices and other matters; business conduct rules and regulations; treasury risks and other financial risks; tax risks; costs of defined-benefit pension plans and other post-retirement plans; reliability of internal controls, financial reporting and management process. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Risk management chapter included in the Annual Report 2019.
Third-party market share data
Statements regarding market share, including those regarding Philips’ competitive position, contained in this document are based on outside sources such as research institutes, industry and dealer panels in combination with management estimates. Where information is not yet available to Philips, those statements may also be based on estimates and projections prepared by outside sources or management. Rankings are based on sales unless otherwise stated.
Use of non-IFRS information
In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non- IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the Annual Report 2019.
Use of fair value information
In presenting the Philips Group’s financial position, fair values are used for the measurement of various items in accordance with the applicable accounting standards. These fair values are based on market prices, where available, and are obtained from sources that are deemed to be reliable. Readers are cautioned that these values are subject to changes over time and are only valid at the balance sheet date. When quoted prices or observable market data are not readily available, fair values are estimated using appropriate valuation models and unobservable inputs. Such fair value estimates require management to make significant assumptions with respect to future developments, which are inherently uncertain and may therefore deviate from actual developments.
Critical assumptions used are disclosed in the
. In certain cases independent valuations are obtained to support management’s determination of fair values.
All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the significant accounting policies as stated in the Annual Report 2019. Certain comparative-period amounts have been reclassified to conform to the current-year presentation.
Effective Q1 2020, Philips has simplified its order intake policy by aligning horizons for all modalities to 18 months to revenue, compared to previously used delivery horizons of 6 months for Ultrasound, 12 months for Connected Care and 15 months for Diagnosis & Treatment. At the same time, Philips has aligned order intake for software contracts to the same 18 months to revenue horizon, meaning that only the next 18 months conversion to revenue under the contract is recognized, compared to the full contract values recognized previously. This change eliminates major variances in order intake growth and better reflects expected revenue in the short term from order intake booked in the reporting period. Prior-year comparable order intake amounts have been restated accordingly. This realignment has not resulted in any material additional order intake recognition.
Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares for the share dividend in respect of 2019.
Market Abuse Regulation
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Author: Philips International B.V.
Dow Jones: Second Stimulus Package Talks Begin Today; Coronavirus Stock Market Rally Stalls
Dow Jones futures are starting the week on the back foot as traders are unsure about the coronavirus stock market’s direction. Investors need to brace themselves for a raft of earnings reports and figure out how the coronavirus’s current spread will impact the future of the stock market. Traders also need a new catalyst to push the stocks higher, and this new catalyst needs to be in the form of assurance in terms of a stimulus package.
The European stock market had more good news today as the policymakers have finally decided to support a massive stimulus package. Netherland, Austria, Denmark, and Sweden have thrown in the towel. They are ready to support the 390 billion Euro rescue fund to be distributed as a grant. The final decision will be formalized at 4:00 pm today, and a tough negotiation process will come to an end.
Geopolitical tensions continue to rise, and this time it is the U.K. that has decided to take a stand alongside its allies against China. Foreign Secretary, Dominic Raab will update Parliament today on the U.K.s intention to suspend its extradition treaty with Hong Kong due to the new national security law imposed by Beijing. The U.S., Australia, and Canada have already suspended their extradition treaties with Hong Kong. Retaliation is the name of the game, and it is only a matter of time before U.K. companies experience a backlash from China as Beijing is bound to respond with its counter measures.
In the global stock markets, we had a bit of a mixed session, South Korean Kospi index slipped by 0.06% while the Shanghai and the HSI indices both scored gains and jumped by 2.51% and 0.08%.
New stimulus talks begin today while stock market rally stalls (Photo by Spencer Platt/Getty … [+] Images)
The Dow Jones futures, along with the S&P 500 futures are likely to be highly focused on the new possible stimulus package in the U.S. Talks over new stimulus proposal between the top Republicans and Democrats will begin today.
The Republicans’ will commence the talks with Democrats with their $1 trillion stimulus plan while the Democrats have a $3.5 trillion stimulus proposal. Donald Trump has talked about $2 trillion stimulus package.
Gold prices are holding on to their $1,800 price level. The door is open for the precious metal to continue its journey towards the all-time high of $1,923. Record ETF flow, loose monetary policy approach are likely to continue to provide more tailwind for the gold prices.
The stock market’s breadth shows that bulls gained additional momentum. 50% of the Dow Jones stocks have traded above their 200-day moving average, a 3% improvement from the day earlier.
The S&P 500 stocks also show more bullish tailwind for the coronavirus stock market rally. 52% of the shares are trading above their 200-day moving average.
Dow Jones futures are trading lower by 150 points. Investors are hopeful about the breakthrough talks on the E.U. stimulus package, while traders are also keeping an eye on the possible U.S. stimulus package.
The Dow Jones futures have started to retrace from their recent highs. However, the Dow Jones’ price is still trading above the 50 and 100-day simple moving average SMA. As long as the Dow Jones price continues to trade above the 200-day SMA on a daily time frame, the DJ30’s price can continue its bull trend.
The S&P 500 index, which shows the broader strength of the stock market, is holding on to its gains. The S&P 500’s price is consolidating, but it is also trading above all the essential averages: 50, 100, and 200-day SMA. This confirms that the bulls are in control of the price.
Below is the S&P 500 daily chart
S&P 500 stocks are showing bullish trend as the S&P 500 index trade above all the 50, 100 and … [+] 200-day SMA
The S&P500 index closed in positive territory on the final trading of last week. It posted gains of 0.28%. Three sectors of the S&P 500 closed in negative territory. The remaining nine sectors closed in a positive zone. The health care sector led the gains for the S&P 500 stocks, while the consumer discretionary sector was the biggest drag.
The NASDAQ composite, a tech-savvy index, also advanced 0.18% on Friday.
Coronavirus global tracker confirm 601K deaths due to Covid-19 and over 14 million global coronavirus cases.
Hong Kong added a new record 108 new Covid-19 infection cases, and the government has made the wearing of masks mandatory in all indoor public places.
L.A.’s mayor, Eric Garcetti, has warned that the city is on the verge of announcing another stay at home measure because the Covid-19 situation is not under control. A lawmaker in Florida has called for a lockdown.
Trump’s presidential campaign has come out strongly against the new social media app, TikTok. It has asked supporters to sign a petition to stop the app. Millennials had protested against the president’s stance on Tiktok previously when Trump tried to place more obstacles in Tiktok’s path to launch an IPO.
Author: Naeem Aslam