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All Eyes On Apple: Will The Market’s Biggest Pillar Finally Crack

All Eyes On Apple: Will The Market’s Biggest Pillar Finally Crack It is safe to say that of all the companies reporting this earnings season, only one truly matters: Apple, which is reporting today after the close at 4:30pm ET. As we showed recently, tech firms have driven over half of market cap appreciation in the S&P 500 in the last 12 months, and not on earnings growth but purely on multiple expansion. Furthermore, as Morgan Stanley recently calculated, currently the top five companies in the S&P 500 make up 18% of the total market cap. And no company plays a bigger role in this total than the world’s most valuable company, Apple, whose $1.4 trillion market cap is 130% higher since Tim Cook guided down expectations just one year ago. But what is even more mind-blowing is that AAPL managed to more than double its market cap even as its earnings have been virtually unchanged over the past year, once again showing the power of central banks in expanding P/E multiples, which for AAPL is now the highest in a decade at ~24x. Apple’s average PE over the past decade was about 14x, lagging other high-growth companies with recurring revenue and reflecting its singular dependence on iPhones sales and reliance on persuading consumers to upgrade their phones year after year. “The run-up in the stock is a concern,...

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CBO Projects Budget Deficit Surpassing $1 Trillion This Year, Sees US Debt Growing Exponentially After

CBO Projects Budget Deficit Surpassing $1 Trillion This Year, Sees US Debt Growing Exponentially After For those who have been following the trajectory of the US budget deficit in fiscal 2020, which as we showed two weeks ago blew out to a nine year high in the first quarter of 2020… … it will come as no surprise that according to the latest, just released CBO forecast, in 2020 the US budget deficit will rise above $1 trillion, or $1.05TN to be specific when the fiscal year ends on Sept 30, 2020, the biggest deficit since 2011, which is $31BN more than the deficit reached in 2019. Relative to GDP, this year’s deficit would be about the same as last year’s shortfall—4.6 percent of GDP—which is the difference between revenues equal to 16.4 percent of GDP and outlays equal to 21.0 percent of GDP. As the CBO writes, the US will spend $1 trillion more than it collects in 2020 and deficits will exceed that amount every year for the foreseeable future, in other words in perpetuity. As a share of GDP, the deficit will be at least 4.3% every year through 2030, and will only grow higher after that. That would be the longest stretch of budget deficits exceeding 4% of GDP over the past century, according to CBO, to wit: CBO currently projects a federal deficit of...

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Hunter Biden Settles Paternity Case; Avoids Courtroom Confrontation Over Financial Info

Hunter Biden Settles Paternity Case; Avoids Courtroom Confrontation Over Financial Info Hunter Biden reached a temporary settlement agreement in his child support case just 48 hours before a deadline for a mandatory court appearance to explain why he shouldn’t be held in contempt for failing to submit overdue financial information. Biden’s baby-mama, an Arkansas stripper, filed the paternity suit last May. On Monday afternoon, Arkansas Circuit Court Judge Holly Meyer approved the tentative agreement – postponing Biden’s in-court appearance originally scheduled for Wednesday. Child support payments will begin on Feb 1, according to a copy of the order filed in the Independence County Circuit Court, which redacted the monthly amount. The final figure, however, will be determined after Biden turns over relevant financial records. He also agreed to pay support dating back to November, 2018. dunno guys, but feels like if Trump had a son driving around in a new Porsche while pretending he didn’t have money for child support for a baby he lied about fathering with a stripper, the media in general might make a bigger deal of it — Buck Sexton (@BuckSexton) January 27, 2020 “He’s doing the right thing by finally stepping up and paying what he should’ve been paying,” said Roberts’ lawyer, Clint Lancaster, in a Monday statement to the Arkansas Democrat-Gazette on Monday, adding “He’s going to begin paying monthly child support....

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Software Company Strikes $145 Million Settlement In “Completely Insane” Opioid-Kickback Scheme

Software Company Strikes $145 Million Settlement In “Completely Insane” Opioid-Kickback Scheme Families who have lost loved ones to opioid overdoses or other opioid-related deaths cheered last week when a judge sent the founder of drugmaker Insys to prison for more than five years over a scheme to effectively bribe doctors into prescribing more of an opioid painkiller called Subsys, a drug intended for advanced cancer patients with high tolerance for opioids. The company insisted that the drug was less addictive and dangerous than other painkillers on the market, and encouraged doctors to prescribe it “off label” – that is, for reasons other than its intended purpose. The company’s aggressive sales team included a former stripper who specialized in showing doctors who heavily prescribed the drug a good time. On Tuesday, the DoJ announced another action related to its campaign to hold those responsible for the opioid crisis to account. In a press release, the agency revealed that it had reached a $145 million settlement with Practice Fusion, a San Francisco-based developer of IT products for the healthcare industry. The company agreed to the payment to resolve criminal and civil investigations into whether it solicited kickbacks from “a major opioid manufacturer” in exchange for using its technology to push doctors toward prescribing more unnecessary opioids. $26 million of that settlement consists of criminal fines, while roughly $118.6 million will go...

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Ernst Calls for End of Taxpayer-Funded Presidential Campaigns

As candidates prepare to spend billions on the 2020 presidential election, Sen. Joni Ernst (R., Iowa) is working to put to use more than $300 million taxpayer dollars sitting idly in a public campaign fund. Presidential candidates today may request grants from the taxpayer-funded Presidential Election Campaign Fund to pay for campaign expenses. The fund has accumulated more than $350 million, as no major party candidates have requested public financing in the last 12 years. The Iowa senator has introduced a bill to abolish the fund and divert its money to pay down the national debt. “Taxpayers see our federal government as spend, spend, spend,” Ernst said. “These are taxpayer dollars, let’s apply them to our country’s debt and move forward. It’s over $300 million right now that could be used to close down deficits that we have in our budget.” Recent Stories in Politics Cotton Calls for Targeted China Travel Ban Biden to Iowa Voter: ‘Go Vote for Someone Else’ McCarthy Breaks GOP Fundraising Record as Party Fights to Take Back The House The last major party candidate to use public funding was Sen. John McCain (R., Ariz.) in 2008, who drew more than $84 million from the public fund, roughly 20 percent of all money raised by his campaign. Since then, the fund has mostly drawn interest from third-party candidates such as the Green Party’s Jill Stein....

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