Womenomics: Firms with female execs perform better, study finds

An analysis by Goldman Sachs found firms that have more women in senior positions as managers or on their boards outperform in their sectors [FILE: …

Companies with a higher presence of female executives have historically rewarded their equity investors with better performance, said Goldman Sachs Group Inc. strategists as they unveiled a basket of European firms that employ an elevated number of women.

“Over more or less any period since the global financial crisis, having more women in senior positions as managers or on the board is associated with company outperformance relative to the sector,” the strategists led by Sharon Bell wrote in a note on Tuesday. They added that this doesn’t apply to all industries and that academic research isn’t yet conclusive on this trend.

Goldman analysts rolled out a new basket of European companies with the most women at all levels, called Womenomics (GSSTWOMN Index), which includes firms such as LVMH Moet Hennessy Louis Vuitton SE, Swedbank AB, Nestle SA and AstraZeneca Plc. French and Nordic companies dominate the list, said the strategists, as France has a quota system for female board members while the Nordic region has historically had higher female labor participation.

Europe is beating the U.S. in its push to make women a more equal part of the workforce, and although the pay gap between men and women remains large in the region, it’s smaller in all major countries in Europe than in the U.S., Canada and in Japan, according to Goldman. Workforce participation rates among women in Europe have been rising, while in the U.S. they’ve been flat since the late 1990s, said the strategists.

(Bloomberg)

The research weighs in on the market debate regarding the importance of investing based on environmental, social and governance principles. Europe has been seeing a boom in appetite for such investing this year, with about 50% of all new exchange-traded funds in Europe, the Middle East and Africa this year ESG-related and accumulating about $4.2 billion in assets, according to Citigroup Inc. data. That compares with $3.8 billion for new non-ESG funds.

ESG Flows

Inflows into ESG-focused strategies may have contributed to the better equity performance among companies with higher female presence, Goldman said.

“The price outperformance may be a function of flows into ESG funds targeting diversity metrics, rather than more women producing better outcomes or lower risks,” the strategists said. “But even if this were the case, we continue to believe investors will value higher social and governance scores for companies, so companies that do perform well on these metrics should continue to attract both flows and a premium.”

As a to-be-sure, Goldman strategists also added that they weren’t able to find a correlation between higher female presence and returns on equity. While the outperformance of companies with more women is “pretty robust” for different time periods, in industries like technology it doesn’t work, according to Goldman, as the sector has been slow to improve its diversity.

They also said that academic research hasn’t been conclusive on whether employing more women means better performance.

Goldman’s Europe Womenomics index is down about 7.8% this year, compared with a drop of 11% for the benchmark Stoxx Europe 600 gauge. Over the past five years, the difference is much more significant, with Womenomics up 22% compared with a gain of around 4.2% for the Stoxx 600.

Covid-19 Effect

The companies in the basket have on average 46% female employees, compared with 36% for the benchmark Stoxx Europe 600 Index. In addition the selected companies have 40% female managers and 42% women on the board.

Goldman doesn’t believe females in the workforce will be more adversely affected than men by the fallout from Covid-19. While women are more heavily represented in such industries as travel, media and retail, which have seen strong profit declines during this year’s crisis, more women are employed by the public sector, where salaries have held up better.

Longer-term social changes as a result of the pandemic could also benefit women, according to Goldman.

“There is likely to be less commuting, more online work and working from home, and this should enhance flexibility for both men and women,” the strategists said. “It is the flexibility of both women and men that we think has been a determinant in increasing women’s participation in the workforce in recent years.”

European Gains Fizzle Out After Weak US Data on Volatile Day

Among notable movers, Aveva Group Plc jumped 7.3% after agreeing to buy SoftBank Group Corp.-backed Osisoft in a $5 billion deal.
This content was published on August 25, 2020 – 16:12

(Bloomberg) — European stocks reversed gains in afternoon trading, with energy and mining shares leading losses, after U.S. consumer confidence data for August disappointed the market.

The Stoxx Europe 600 Index closed down 0.3% in London after gaining as much as 0.9% earlier as the U.S. and China reaffirmed their commitment to the phase-one trade deal in a biannual review. Oil stocks and miners each fell 1.3% or more, while travel and leisure shares rose the most among industry groups.

European stocks have been largely rangebound since early June, after a sharp rebound from the sell-off through March. Trade tensions and worries about rising coronavirus cases have tempered optimism about an economic recovery. The Stoxx 600 on Tuesday once again tested its 200-day moving average, which it has struggled to clear decisively since July.

The Stoxx 600 Chemicals Index briefly rose to an all-time high, erasing its pandemic-spurred losses, before turning lower in the afternoon.

Among notable movers, Aveva Group Plc jumped 7.3% after agreeing to buy SoftBank Group Corp.-backed Osisoft in a $5 billion deal.

©2020 Bloomberg L.P.

Stock Market Live Updates 25/08 – Cineworld Share Price Climbs

Next Fifteen Communications +17%. DFS Furniture +15%. Arrow Global +14%. Gapwaves +9%. Weng Fine Art +9%. Cineworld +6% …

As it happens:

Latest16:41

European Equities Close

FTSE 100 -1.11% 6,037

DAX -0.04% 13,060

EURO STOXX 50 -0.02% 3,331

European indexes give up their earlier gains and the majority finish down for the day.

15:50

DraftKings Stock

$DKNG

Shares of DraftKings are up 9.47% at $39.20.

Yet to see any news on why it has jumped.

14:53

US Equities

Dow Jones +0.04% 28,319

S&P 500 +0.05% 3,433

Nasdaq -0.23% 11,353

13:42

Urban One (UONE)

$UONE

Shares of multimedia company Urban One have soared premarket on increasing volume.

It is currently trading 62% higher at $6.74 per share. The stock initially saw a surge back in June after BLM protests increased in the US. It had since fallen but is rising once more on the back of renewed protests as media company’s such as Urban One follow the demonstrations.

12:21

European Equities Update

FTSE 100 +0.13%

DAX +0.69%

EURO STOXX 50 +0.77%

10:40

Apple

$AAPL

Apple Plans to start selling online in India next month.

10:26

European Stock Gainers

Next Fifteen Communications +17%

DFS Furniture +15%

Arrow Global +14%

Gapwaves +9%

Weng Fine Art +9%

Cineworld +6%

10:20

Exxon – Dow Jones

Here is more on the Exxon and Dow story…

  • In total three stocks were swapped for the second time in a decade.
  • Salesforce.com will replace Exxon Mobil, Amgen will replace Pfizer, and Honeywell International will replace Raytheon Technologies.
  • S&P Dow said the changes were “prompted” by Apple’s 4-for-1 stock split which will help to offset the reduction in the indexes tech-sector weighting.

08:45

DFS Furniture Share Price

DFS shares have surged after the company said they have seen strong demand for sofas since the lockdown has eased.

DFS shares are currently trading at 172.6p, up 15.07%.

08:41

European Equities

FTSE 100 +0.62% 6,142

DAX +0.75% 13,164

EURO STOXX 50 +0.95% 3,363

07:37

Morning Preview

Good morning people…

  • Asian markets were mostly higher overnight with the Nikkei closing at +1.35%. The ASX closed up by +0.52%.
  • Exxon has been kicked out of the Dow Jones Industrial Average after nearly 100 years to make way for Salesforce.com
  • US and China trade representatives spoke yesterday regarding the phase 1 trade deal implementation. Both sides see progress.
  • The US dollar is down slightly against most other major pairs this morning, with the EURUSD up 0.14% and the GBPUSD up 0.17%.
  • On today’s calendar, we have already seen German GDP come in slightly higher than expected. US consumer confidence data is to be released at 3 pm.
  • Names on the earnings calendar include Best Buy, Salesforce, HP, Scotiabank, Urban Outfitters, Medtronic, and Heico.

Live Stock Market Updates 29/07 – Cineworld Share Price Falls 11%

Cineworld shares are down over 11% so far today. It could be down to continued coronavirus spikes in the US delaying theatre openings. 08:28

As it happens:

Latest20:58

US Markets Close

Dow Jones +0.62 % 26,552

S&P 500 +1.25% 3,258

Nasdaq +1.35% 10,542

A strong day for US equities.

That’s all from me for today, see you tomorrow!

20:49

Electric Vehicle Stocks

A couple of the other electric vehicle manufacturers are moving higher as well…

Solo Electrameccanica is up 16%, while Ayro has had a small move of 4.41% higher.

20:32

Kandi Technologies $KNDI

Kandi Technologies stock has catapulted higher following a press release from the company that highlighted its formal launch of electric vehicles on the US market.

Kandi’s share price is up 138.5% at $9.23 per share.

20:09

US Stocks Update

A mostly green day for US stocks!

Via Finviz.com

19:59

Fed Chair Powell

Fed Chair Powell has said that household spending appears to have recovered about half of earlier decline

He also said that the coronavirus pandemic has left a ‘significant imprint’ on inflation.

19:05

Fed Interest Rates

The Fed has kept interest rates at 0.25%…

For anyone interested in the full statement, here it is:

18:38

Blink Charging Stock

$BLNK

Blink Charging Co is up 37.74% so far today after the company announced it will collaborate with EnerSys to develop ‘high power inductive/wireless and enhanced DC fast charging systems with energy storage options for the automotive market.’

17:18

Fed Interest Rate Reminder

Just a reminder to all that there will be a Fed interest rate decision at 19:00 BST, and press conference at 19:30 BST.

16:43

Boeing Share Price

Boeing shares are down -4.18% after the company reported a lower than expected Q2 EPS and sales results.

Boeing also announced it is cutting production on the 787 and 777 programs along with ending its 747 jet production.

Currently trading at $163

16:03

Tupperware Brands Stock

Tupperware Brands stock is trading 54% higher after the company reported better than expected Q2 EPS and sales results.

Currently trading at $15

15:53

Eastman Kodak Shares

Just a small update on Eastman Kodak $KODK…

They are now trading up 301.76%, down about 40% from the highs of the day.

Just a small move then!

15:14

Penn Stock

$PENN stock has had a climb here. Currently up 9.01% at $36.19.

DDTG Global will be happy!

15:12

US Equities First Look

It’s a positive start for US equities…

Dow Jones +0.32% 26,464

S&P 500 +0.66% 3,239

Nasdaq +0.98% 10,503

13:30

European Equities Lunchtime Look

I’m late with this one, I know, sorry…

FTSE 100 +0.31% 6,148

DAX -0.01% 12,834

EURO STOXX 50 +0.14% 3,308

DAX is letting the team down!

In reality, it’s mixed across Europe, with the IBEX 35 and FTSE MIB also down so far today.

13:27

Shopify Shares Trade Higher Premarket

Shopify’s share price has surged 8% premarket after the company reported better than expected Q2 EPS and sales results.

11:40

Eastman Kodak Shares

Eastman Kodak shares are trading higher premarket following comments from US President Donald Trump that the US had reached a “historic” deal with the company.

10:12

European Market Movers

I.M.A +12%

Loopup Group +10%

Sopra Steria +9%

Hargreaves Services +8%

Cineworld -11%

09:48

Cineworld Share Price

Cineworld shares are down over 11% so far today.

It could be down to continued coronavirus spikes in the US delaying theatre openings.

08:28

European Equities First Look

FTSE 100 -0.18% 6,118

DAX -0.23% 12,805

EURO STOXX 50 -0.18% 3,297

07:30

Morning Market Preview

Good morning everyone…

  • Asia-Pac indices traded very similarly to the previous session with the ASX and Nikkei closing down, while Chinese indices and Hong Kong’s Hang Seng index look as though they will close higher.
  • In FX markets there has been little movement, although the USD has lost some ground.
  • Stock market news site Benzinga is claiming that there was some suspicious trading activity prior to the announcement of the government loan given to Kodak. Monday saw its stock rise 25% before the announcement on Tuesday when it then saw an over 200% move.
  • The US stimulus bill is still being discussed, although there are reports that republicans are deeply divided over the package.
  • Looking at today’s calendar we have the Fed’s interest rate decision and press conference after, and the US pending home sales.
  • On the earnings calendar today, we have names such as Boeing, Facebook, Qualcomm, Bunge, ConMed, and General Motors

Beijing to pilot blockchain for private stock registration, custody

Apart from Beijing, the China Securities Regulatory Commission also authorized Shanghai, Jiangsu, Zhejiang and Shenzhen for blockchain pilots.

Yesterday the Beijing municipality announced a new blockchain pilot for stock registration and custody. It will be implemented by the Beijing Regional Equity Market, which already has an online stock registration, custody and transfer system.

The solution is not targeted at the national public stock markets, but at regional equity markets that target local small and medium-sized enterprises for non-public issuances. For the Beijing area, the Beijing Regional Equity Market is the only venue authorized to process such transfers.

As of June 30, the Beijing Regional Equity Market had served more than 1,000 unlisted companies with a total share capital of more than 21 billion yuan ($3 billion) and held equity in custody for nine commercial banks.

Apart from Beijing, the China Securities Regulatory Commission also authorized Shanghai, Jiangsu, Zhejiang and Shenzhen for blockchain pilots.

Around the world, there are numerous startups focused on tokenizing private shares. The one that sounds the most similar to the Beijing initiative is Swiss-based Daura, which specifically targets Swiss SMEs and digitizes the share registry using the Hyperledger Fabric blockchain. However, investors can be outside of the country. The startup received funding from both the Deutsche Börse and Swiss stock market SIX.


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