Why is the FTSE 100 lagging the Dow Jones and the S&P 500?

first_img Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by James J. McCombie I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Yesterday the Dow Jones Industrial Average closed above 30,000 for the first time. That is a remarkable turnaround, given that the Dow slumped to under 19,000 in March this year. From its March low of under 2,250, the S&P 500 index has risen to over 3,600.Both the S&P 500 and the Dow are back above their pre-market crash highs. Meanwhile, the FTSE 100, while still well over 1,000 points above its market crash lows, is well shy of its pre-crash highs.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…And it’s not just the FTSE 100. Both the French CAC 40 and the German DAX also sit below their pre-crash highs and lag their American counterparts.Why is the S&P 500 outperforming?In the US, unemployment benefits were increased in light of the coronavirus pandemic. In the UK and Europe, firms were given support to pay wages to furloughed staff. One theory is that allowing people to lose their jobs in the US means they can, over time, move into more profitable parts of the economy. In Europe and the UK, furloughing staff in otherwise unprofitable areas of the economy, and keeping ailing firms alive, might hold up the creation of more productive jobs and place a drag on the economy.The spectre of Brexit is still hanging over the UK and Europe. Uncertainty around the future relationship between the UK and Europe will be a headache for businesses looking to plan for the future on both sides of the channel. Investors might also be lacking confidence. This is not positive for the FTSE 100 and European stock markets.A weakening US dollar, against both the pound and euro, is also favourable for profits of American firms and its stock markets. A weaker dollar means foreign profits converted back to dollars are increased. That’s good for US markets. However, since the dollar is weaker, the pound and euro are stronger, so any US profits will shrink in pound and euro terms. That isn’t good for European markets.FTSE 100 lacking tech stocksI think the main reason the FTSE 100 lags both the S&P 500 and the Dow is down to the type of stocks in it. In the chart below, the sector weightings of the FTSE 100 and the S&P 500 are compared. The S&P 500 has significantly more tech exposure than the FTSE 100. The FTSE 100 has much more exposure to energy (including oil and gas stocks) and financials (which includes banks).Source: Author’s own calculationsTech stocks have been on a tear this year. Banks and oil majors have suffered. Of all the reasons offered, I think the fact that the FTSE 100 is underexposed to the best performing sectors and overexposed to the worst explains its underperformance best. The Dow, although often considered stodgy and old economy-focused, has the likes of Microsoft and Apple in it.Unless the structure of the FTSE 100 changes, then it will likely continue to underperform the S&P 500. However, that does not mean all FTSE 100 stocks are laggards. Some, like Ocado and Scottish Mortgage Investment Trust, are up 90% over a year.  So, picking the right stocks can make a huge difference to returns. And let’s not forget that over the last 10 years, the FTSE 100’s dividend yield has been a little under around 4% on average. The S&P 500’s average yield is closer to 2%. So, income investors might find the FTSE 100 a fertile hunting ground.center_img Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Why is the FTSE 100 lagging the Dow Jones and the S&P 500? James J. McCombie | Wednesday, 25th November, 2020 Enter Your Email Address There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! James J. McCombie owns shares of Scottish Mortgage Inv Trust. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img read more

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Fatal infernos: 31 dead, 228 missing, 7,000 structures destroyed as California blazes grow

first_imgiStock/Thinkstock(PARADISE, Calif.) — At least 31 people have been killed as massive wildfires raging in Northern and Southern California have engulfed thousands of homes and were threatening to destroy more as blustery winds were dealing firefighters a menacing challenge throughout the state over the weekend and into today.“This week, California has experienced the most destructive fires we have seen in its history. There are 196,000 acres burned, thousands of homes and dozens of lives lost,” Chief Scott Jalbert of the California Department of Forestry and Fire Protection said Sunday morning.The largest and deadliest of the infernos is the Camp Fire, which as of Sunday had burned 109,000 acres, leveled 6,435 homes and another 260 commercial structures in Northern California’s Butte County, according to officials. There were at least 228 people unaccounted for as of early Monday.At least 29 civilians have been killed in the Camp Fire, which ignited on Thursday and quickly swept through communities in the Sierra foothills, nearly wiping out the bucolic town of Paradise. At least five firefighters have been injured battling the blaze.On Sunday, the monstrous fire was 25 percent contained, according to Cal Fire.Two other people were killed in the Woolsey Fire burning in Southern California, bringing the death toll from the California wildfires to 25 on Sunday.The threat from the Camp Fire isn’t expected to diminish anytime soon, as gusty weather ramped back up Sunday. Red flag warnings signaling extreme fire danger have been issued for parts of Northern California, including the areas surrounding Sacramento and San Jose.More than 149,000 people throughout the Golden State have evacuated as a result of the fires, outgoing California Gov. Jerry Brown told reporters Sunday afternoon.Wind gusts could reach 50 mph across the eastern foothills and western slopes of the northern Sierra Nevada mountain range through today, as well as parts of the Sacramento Valley.On Saturday, Shawn Field of Paradise didn’t know if his house was still standing. On Sunday morning, an ABC News crew found Field’s home completely destroyed. The only thing left intact was a green coffee cup.“This is real,” Field said.Field said he and his family moved into the house on Honey Run Road in March. He said his son was home when the fire moved close to their house on Thursday and that he had about 10 minutes to pack up some belongings and get out.“He was able to pack a backpack and a small duffle bag of things we could use, and that’s all we have,” said Field, who is staying with friends about 15 miles away in Chico.Despite his loss, Field said his spirits have been boosted by the support he and his family have gotten from friends and strangers.“It’s awesome how many people are rallying around and helping us out,” he told ABC News.Woolsey Fire prompts new evacuationsMeanwhile, the Woolsey Fire in Southern California was only 15 percent contained Sunday after blackening 85,500 acres across Los Angeles and Ventura counties and destroying 177 structures, Cal Fire said.Another fire burning in the area, the Hill Fire, was 70 percent contained Sunday after it consumed 4,531 acres in Ventura County near Thousand Oaks, where a gunman killed 12 people Wednesday night at a country bar before taking his own life.“This morning, the Santa Ana wind condition has reestablished itself and is going to be in the area for the next couple of days,” said Tony Imbrenda, spokesman for the Los Angeles County Fire Department.Two people were found dead in Malibu from the Woolsey Fire, officials from Cal Fire said.Detectives believe that the victims, found in a vehicle off the Mulholland Highway, were killed after the driver became disoriented while evacuating and the car was overcome by fire, Los Angeles County Sheriff’s Department Cmdr. Scott Gage said in a press conference Sunday afternoon.More than 3,200 firefighters battling the Woolsey Fire are bracing for more tough days to come on the fire lines due to strong Santa Ana winds of up to 40 mph that threaten to blow embers into areas that have not burned, officials said.“This is a wind-driven event and the winds are coming back,” Chief John Benedict of the Los Angeles County Sheriff’s Department said Sunday. “Everybody needs to remain vigilant and please stay out of the areas that we’ve determined to be evacuation zones.”Benedict said the cities of Hidden Hills, Agoura Hills, Westlake Village, Calabasas and Malibu remained under evacuation orders. He also said the fire appeared to be moving west toward the Pacific Ocean and he advised residents in Topanga Canyon to evacuate.“We have reports of numerous residents in the Topanga area that have chosen to shelter in place and we’re advising them to immediately leave and move to one of the shelters or to other locations out of danger,” said Benedict, adding that he and his family have been evacuated twice since the fire broke out.In addition, 3,500 students at Pepperdine University — which sits atop a picturesque Malibu mountain overlooking the Pacific Ocean — are sheltering in place, Gage saidBurning ice plantVentura County Fire Department Chief Mark Lorenzen implored people to leave evacuation zones. He said the fire was burning everything in its path including ice plant.“Ice plant is not supposed to burn,” Lorenzen said Sunday. “So my message to the community today is maybe 10 to 20 years ago you stayed in your homes when there was a fire and you were able to protect them. Things are not the way they were 10 years ago. The rate of spread is exponentially more than what it used to be.”On Friday and Saturday, 23 bodies were discovered in communities ravaged by the Camp Fire, most of them found in Paradise, the Sierra foothills town of 26,551 people that was almost completely destroyed in the blaze. An additional six bodies were later found, Butte County officials announced Sunday evening.The Camp Fire is now one of the deadliest wildfires in California history, tied at No. 1 with the 1933 Griffith Park fire in Los Angeles, which also claimed 29 lives, according to Cal Fire. At nearly 7,000 structures burned, the Camp Fire is also the state’s most destructive.Four of those victims were found dead in or near torched vehicles. Autopsies will be conducted to determine the circumstances of the deaths and to identify the individuals, but investigators believe their cars were “overcome” by the flames, according to a statement from the Butte County Sheriff’s Office on Friday night.There were more than 100 people missing in the region, though officials were working to track them down. At least 70 people reported missing were located on Saturday and are now safe, officials said.The Butte County Sheriff’s Office has activated a call center for the public to provide and receive information about those thought to be missing.Authorities have received reports of additional fatalities due to the blaze, which investigators are working to confirm.Some 52,000 people have been evacuated from their homes. Pulga, Concow, Magalia, Stirling City and the entire town of Paradise were among the areas that were under mandatory evacuation orders, according to the California Department of Forestry and Fire Protection.“The task is difficult due to the fact that the fire is still active and there are many hazards in areas where fatalities have been reported,” the sheriff’s office said in the statement.The governor-elect of California, Gavin Newsom, on Thursday issued an emergency proclamation for Butte County due to the Camp Fire.On Sunday, Brown requested President Trump issue a Major Disaster Declaration to bolster the ongoing emergency response and aid residents in their recovery from devastating fires throughout the state.“We have the best firefighters and first responders in the country working in some of the most difficult conditions imaginable,” Brown said in a statement Sunday. “We’re putting everything we’ve got into the fight against these fires and this request ensures communities on the front lines get additional federal aid. To those who have lost friends and family members, homes and businesses, know that the entire state is with you. As Californians, we are strong and resilient, and together we will recover.”Trump called ‘dangerously wrong’Late on Friday, President Donald Trump declared a state of emergency for California, freeing up federal resources to supplement local response efforts. The declaration allows the U.S. Department of Homeland Security and the Federal Emergency Management Agency to coordinate disaster relief efforts to help alleviate the hardship and suffering caused by the emergency on the local population, provide support for emergency measures and free up federal resources.But on Saturday morning, Trump threatened to pull federal funding for California wildfires if the state didn’t “remedy” its poor “forest management.”“Our focus is on the Californians impacted by these fires and the first responders and firefighters working around the clock to save lives and property — not on the president’s inane and uninformed tweets,” Brown’s press secretary, Evan Westrup, told ABC News on Sunday.Brian Rice, president of California Professional Firefighters, called Trump’s threat to slash funds for battling California wildfires “ill-informed, ill-timed, demeaning to those who are suffering as well as the men and women on the front lines.”Rice said Trumps assertion that California’s forest management policies are to blame for the catastrophic wildfires is “dangerously wrong.”“Wildfires are sparked and spread not only in forested areas but in populated areas and open fields fueled by parched vegetation, high winds, low humidity and geography,” Rice said. Copyright © 2018, ABC Radio. All rights reserved.last_img read more

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Thirteen EU member states supported Croatia’s efforts to establish an EU Tourism Fund

first_imgA delegation of the Ministry of Tourism, consisting of State Secretary Frano Matušić and Chief Adviser to the Minister Barbara Mesić, participated in the 11rd meeting of the UNWTO Commission for Europe in Prague from 13 to 63 June. By the way, Croatia currently chairs the UNWTO Commission for Europe, and State Secretary Matušić chaired the presidency of the Commission on behalf of the Ministry of Tourism.A few months ago, Minister Cappelli started lobbying EU member states in order for tourism to gain a better position in the EU institutions and the establishment of the EU Tourism Fund, and Minister Cappelli and the Government of the Republic of Croatia were supported by the European Parliament financial lines for tourism. According to the Ministry of Tourism, in the meantime, information and support for the Croatian initiative began to spread among all members, so that thirteen member states: Italy, Portugal, Spain, Cyprus, Romania, Slovakia, Lithuania, Latvia, Malta, Poland , Greece, Bulgaria and Slovenia – both in writing and in bilateral meetings, sided with Croatia.The tourism sector employs 24 million people in the EU and generates 10 percent of GDP and certainly deserves to be more represented within the EU, is one of the main arguments for strengthening the position of tourism in EU institutions, ie the establishment of the EU Tourism FundYesterday in Prague, at a meeting of the Commission for Europe, support for the Croatian initiative was voted on. During the discussion, Italy pointed out that strengthening the position of tourism is an issue of strong EU interest, and that the UNWTO (World Tourism Organization) should be the main protagonist who will support us with its decisions at the EU level. All 13 Member States agreed that tourism deserves a separate administration within the European Commission (currently under administration together with the creative industries), that this separate body should be a place where we will discuss employment, youth, the labor force, but also stronger financial support for tourism.”The government has recognized the value of tourism and that is why we have launched an initiative to establish a single European fund for tourism and working groups to give tourism in Europe as the strongest tourist region in the world its deserved place and representation. The launch of this initiative is of great importance for Croatia as one of the leading tourist destinations in Europe, and its implementation would open up numerous financial and development opportunities for the Croatian tourist system.”, Said Minister Cappelli on the recommendation of the European Parliament.As the multiannual financial framework for the next seven-year period is adopted by autumn 2018, and next year there are new elections for the European Parliament, this is the right time for all countries that advocate strengthening the position of tourism to join their votes. As tourism is a horizontal activity, it is financed from several different funds, for most countries it is most important to financially support innovative entrepreneurial projects in tourism, which will generate new employment, and consequently positive financial processes. “UNWTO Secretary-General Zurab Polilikashvili has openly supported the initiative from the beginning, and talks on the issue will continue in the EU institutions over the next month. However, this time Croatia will not be alone. A large number of member states will be with us. ” stand out from the Ministry of Tourism.Croatia to host UNWTO session next yearAt the end of yesterday’s session of the UNWTO Commission for Europe, it was announced that Croatia has won the competition for the next host of the UNWTO Commission, which will be held in 2019 in Croatia. It will be an opportunity to host the leaders and leaders in tourism of the 42 members of the UNWTO Commission for Europe.last_img read more

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Wavering intent: Plan to reopen places of worship gets mixed response

first_imgThe government’s plan to gradually reopen places of worship has drawn mixed responses from religious groups and health experts, many of whom insist that any possible easing of curbs anywhere should be contingent on low risk of transmission.For Muslim-majority Indonesia, where faith plays a large role in society, the pandemic has shuttered various mosques, temples and churches and prevented people from holding mass prayers.However, the debate has managed to open a can of worms that pits public health against the right to practice religious beliefs. “There should be a guarantee from experts and authorities that can be held accountable. Only if these terms are fulfilled can we think about reopening, and even then only with strict [health] protocols,” Abdul told The Jakarta Post.Rev. Japarline Marbun, head of the Bethel Church of Indonesia’s (GBI) synod, also said it would be better to err on the side of caution, considering how difficult it is to put in place the necessary health protocols in some churches.“It is difficult, for instance, to expect congregations not to jostle as they enter the church, and there are many churches closed off with [poor] air circulation,” Japarlin said.And while some preach about the importance of relying on science to ensure public health, others still find it hard to heed state-sanctioned physical distancing measures.The nation’s top Muslim clerical body, the Indonesian Ulema Council (MUI), which comprises many organizations including NU and Muhammadiyah, said that places of worship should be allowed to reopen their doors to worshipers in areas deemed safe from COVID-19 transmission.“Under conditions where the spread of COVID-19 is under control, Muslims are obliged to carry out Friday prayers and allowed to get involved in mass prayer activities […] so long as they stay mindful of not getting infected,” said Asrorun Niam Sholeh, the MUI’s fatwa commission secretary, in a statement.Last week, Religious Affairs Minister Fachrul Razi signed a circular detailing the necessary protocols for reopening places of worship in areas deemed to have little risk of viral transmission.“The guidelines stipulate that any religious or social activity at a place of worship must take account of the real circumstances in the immediate vicinity and not just the status designated for that given area,” Fachrul said in a virtual press briefing on Saturday.“Even if, for example, an area is considered a yellow zone, if COVID-19 transmission is found anywhere near a place of worship, that place cannot host any collective prayer.”In order for a place of prayer to be reopened to the public, Fachrul said the local COVID-19 task force must recommend it in coordination with the relevant authorities. Recommendations can also be revoked if new infections are recorded or if there is a perceived lack of health protocol enforcement.Three months after Indonesia reported its first COVID-19 infection, the government has come under fire for not acting swiftly enough to curb the spread of the disease among the nation’s devout – the millions of people who are accustomed to attending mass congregations and collective prayers.A recent report from the Jakarta-based Institute for Policy Analysis of Conflict (IPAC) found that the lack of an early response to ban mass religious gatherings in the early days of COVID-19 transmission had contributed to the emergence of two infection clusters: the Gowa cluster linked with a tabligh (Muslim mass gathering) in South Sulawesi, and another from a religious seminar by GBI in Lembang, West Java.“The lack of clear guidance on enforcement or sanctions could lead to unfortunate outcomes: new clusters of religious ‘super-spreaders’ or vigilantism, as some groups decide to take law into their own hands,” researchers said in the IPAC report.The city of Brebes in Central Java was designated a COVID-19 “red zone” early last month after 16 of its residents tested positive for the disease after returning from the Gowa tabligh event, while 127 people were infected from the Lembang event.University of Indonesia epidemiologist Pandu Riono said that restrictions on places of worship should be eased gradually and that the government should be prepared to conduct local testing and tracing should COVID-19 cases increase following the reopening of such locations.There are always going to be concerns about violations or if [proper health protocol] is not observed,” Pandu told the Post.“If people in a congregation from mosques or churches catch [the virus], the entire group should be tested and [places of worship] should be temporarily closed.”Topics : Robikin Emhas, chairman of the country’s largest grassroots Muslim organization, Nahdlatul Ulama, said the current circumstances called for a thorough assessment of the options and should take various factors into account, including the rate of infection and the preparedness of the national healthcare system.He said that any state policy should consider the actual conditions in the field as they relate to the infection curve, as well as the ability to contact-trace, quarantine and treat COVID-19 patients.“As an exit strategy for the current large-scale social restrictions, a ‘new normal’ should be studied and prepared thoroughly so it may foster a productive livelihood for a society that is safe from COVID-19,” said Robikin, a vice presidential advisor.Abdul Mu’ti, secretary-general of the nation’s second-largest Muslim group, Muhammadiyah, voiced a similar opinion, saying that reopening places of worship should not be done with haste, calling instead for the government to focus on prevention.last_img read more

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