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With police absent in Gaza, vigilante groups arrive on the streets

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With police absent in Gaza, vigilante groups arrive on the streets
© Reuters. Members of People’s Protection Committees work to maintain security and control prices in the market, amid the ongoing conflict between Israel and Hamas, in Rafah in the southern Gaza Strip, March 4, 2024. REUTERS/Mohammed Salem

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By Mohammad Salem and Nidal al-Mughrabi

RAFAH, Gaza Strip/CAIRO (Reuters) – Heads turned as the masked men with clubs walked down a Rafah street, part of a vigilante public security group set up by armed factions in Gaza after the civil police force went underground saying it was targeted by Israeli strikes.

A group of nine of the men, their head bands reading “People’s Protection Committees” bound around ski masks or hoods, strode through a market place this week after first appearing around Rafah late last month.

“We want to control the street to ensure that there is still safety in the country… We are present in the streets to control the streets from all sources of trouble existing in the Palestinian street now,” one said.

The group was formed by the Hamas-run Interior Ministry, along with other political factions that had a street presence in Gaza, and was tasked with ensuring public order and stopping price hikes by market profiteers, he said.

Reuters was unable to reach a spokesperson for the Gaza Interior Ministry, which has stopped operating normally since the war began. Spokespeople for Hamas, Islamic Jihad, and another major faction, did not immediately respond to requests for comment.

When the vigilantes first appeared in markets, with some brandishing assault rifles, dozens of youths gathered around to whistle, clap and chant “God is Great” in support, witnesses said.

But while some Rafah residents appeared to welcome the emergence of the People’s Protection Committees to tackle lawlessness and war profiteers, others seemed worried at the idea of armed, masked men taking over policing.

“Maybe if we had real policemen without masks, people who are known to the people, it would be more organised and more comfortable,” said a father-of-four Reuters reached by phone in Rafah.

None of the people Reuters spoke to wanted to be identified by their full names. The vigilantes feared being identified by Israel or by the clans of profiteers whose goods they had seized, one person said. People backing the vigilantes were worried that Israel would see them as Hamas supporters.

Those who voiced concern about them were worried about angering the group, or the factions that support it, they said.

PROFITEERING

Hamas, whose deadly attack on Israel on Oct. 7 triggered the conflict, has run Gaza since 2006, including overall control over the civil police force.

Officials from the U.N. agency for Palestinian refugees, UNRWA, have said uniformed municipal police in Gaza have refused to escort aid convoys after a number of police were killed in Israeli strikes.

Israel’s military did not immediately respond to a request for comment on whether it was attacking police.

The conflict has led to intense shortages of all goods in Gaza, with Israel allowing only humanitarian aid into the enclave, trickling in at a far slower rate than food and medicine did before the conflict.

Prices have rocketed, infuriating a population in which almost everybody has already lost their home and now live, destitute, in tents or other temporary shelters with few possessions beyond the clothes they wear.

“The ministry of economy sets the price of every good which everyone should follow, including big traders even before smaller ones,” said one of the masked men.

They issue warnings to traders whose prices are too high and confiscate the goods of repeat offenders to sell at the set rate, he said.

“They are answering our call to protect us against high prices,” said Akram, a Rafah resident infuriated by the rampant inflation who had to quit smoking because a single cigarette cost what a whole packet had done previously.

The father of four in Rafah said he had initially welcomed the idea of vigilante groups, but they had proven ineffective and were going after the wrong people, he said.

“They should focus their mission at Rafah border crossing where the goods come in and they have to press senior merchants to bring down prices,” he said.

Market traders selling goods at a high price were often displaced people who had been forced to buy their goods at inflated prices from profiteers themselves, said another Rafah resident.

“Why can’t the Economy Ministry form groups to do these campaigns and inspect markets?” he said.

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Equinix shares downgraded on valuation concerns

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CFRA has downgraded Equinix (NASDAQ:EQIX), a global data center company, from a Buy to a Hold rating, setting a price target of $900.00. The adjustment was made due to the stock’s current price nearing what CFRA considers its fair value. The firm’s analyst cited a forward Price/Funds From Operations (P/FFO) multiple of 34.0x, which is higher than that of Equinix’s direct peers, as a reason for the downgrade.

The analyst provided financial forecasts, estimating Equinix’s FFO at $24.70 for 2024, which is slightly below the consensus of $24.74, and at $26.50 for 2025, compared to the consensus of $26.74. Revenue projections were also offered, with expectations of $8.75 billion in 2024 and $9.5 billion in 2025. The analyst’s outlook reflects confidence in Equinix’s market position and strategic initiatives.

Equinix is recognized for its unique market position, strategic locations, and a customer ecosystem that is considered “sticky” due to the difficulty of switching providers. The company’s sales expertise and the presence of leading global networks within its facilities also contribute to its strong market presence. CFRA highlighted Equinix’s cloud-based global platform and distributed infrastructure as key differentiators that make it a preferred partner for many large technology companies.

The industry fundamentals for data centers remain favorable, according to CFRA, with significant supply constraints in various major data center markets. The analyst noted Equinix’s customer churn rate, which remains low at less than 2.0%-2.5%. This indicates a strong customer retention rate for the company.

In terms of capital expenditures, Equinix reported a total outlay of $648 million in the second quarter of 2024. This spending is focused on major projects across eight markets, with 80% of the capital expenditures tied to long-term ground leases. This level of investment reflects Equinix’s commitment to expanding and maintaining its market-leading position in the data center industry.

In other recent news, Equinix Inc (NASDAQ:). announced the departure of Scott Crenshaw, the company’s Executive Vice President and General Manager of Digital Services. The terms of Crenshaw’s separation are still under negotiation, with further details expected in an upcoming report.

On the financial front, Equinix reported a robust 8% year-over-year increase in second-quarter revenues, totaling $2.2 billion, primarily attributed to its xScale program and focus on artificial intelligence.

The company has also issued over $750 million in green bonds, bolstering its commitment to sustainability and placing it among the top ten largest U.S. corporate issuers in the investment-grade green bond market. Analyst firms Mizuho and Evercore ISI have maintained their Outperform ratings for Equinix, with Mizuho raising its price target from $873.00 to $971.00 based on improved Q2 performance and earnings estimates.

Equinix has also issued €600 million in 3.650% Senior Notes due 2033 and priced CHF 100 million in bonds to fund Eligible Green Projects, aligning with its Green Finance Framework. These financial maneuvers underscore the company’s strategic approach to funding its sustainability initiatives.

Despite facing macroeconomic challenges and ongoing investigations by regulatory authorities, Equinix remains confident in its strategic direction and ability to deliver value to shareholders.

InvestingPro Insights

Equinix’s financial health and market performance can be further illuminated by real-time data from InvestingPro. With a robust market capitalization of $83.55 billion, the company stands out as a significant player in the data center space. Its Price to Earnings (P/E) ratio, as of the last twelve months leading up to Q2 2024, sits at a high 124.15, indicating a premium market valuation compared to earnings. However, investors may also consider the PEG ratio of 3.1, which could suggest the stock’s price is high relative to its earnings growth potential.

InvestingPro Tips point to the company’s solid revenue growth, with an increase of 8.05% over the last twelve months leading up to Q2 2024. This growth is complemented by a gross profit margin of 45.99%, showcasing the company’s ability to maintain profitability. Additionally, Equinix has demonstrated a strong dividend growth rate of 24.93%, a factor that could be attractive to income-focused investors.

For those considering an investment in Equinix, it’s worth noting that the InvestingPro platform offers a wealth of additional tips – there are 15 more tips currently available that can provide deeper insights into Equinix’s financials and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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White House details plan to safeguard US auto sector, avoid second ‘China shock’

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By David Shepardson and Ben Klayman

WASHINGTON/DETROIT (Reuters) -Top White House economic adviser Lael Brainard laid out on Monday the Biden administration’s broad approach to safeguarding the U.S. auto sector from what it considers China’s unfair trade actions.

“China is flooding global markets with a wave of auto exports on the back of their own overcapacity. We saw a similar playbook in the China shock of the early 2000s that harmed our manufacturing communities, and this administration is determined we will not see a second China shock,” Brainard said to the Detroit Economic Club.

“That means putting safeguards in place now before a flood of unfairly, underpriced autos undercuts the ability of the U.S. auto sector to compete fairly on a global stage,” she added at the Detroit event.

Relatively few Chinese-made cars and trucks are imported into the United States.

The U.S. Commerce Department on Monday proposed prohibiting key Chinese software and hardware in connected vehicles on American roads due to national security concerns, a move that would effectively bar nearly all Chinese cars from entering the U.S. market.

“Americans should drive whatever car they choose – whether gas powered, hybrid, or electric,” Brainard said. “But, if they choose to drive an EV, we want to make sure it was made in America, and not in China.”

Brainard’s appearance comes as the fate of the auto industry and pressure from China has become a major theme in the 2024 presidential election with the Republican nominee Donald Trump suggesting China could dominate future auto production.

Earlier this month, the Biden administration locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles, to boost protections for strategic industries from China’s state-driven industrial practices.

The White House aims to ensure that Chinese automakers cannot set up factories in Mexico to get around high tariffs.

“We’re going to need to work our partners Canada and Mexico, to address China’s overcapacity in the EVs as we look to the mid-term review of the USMCA in 2026,” Brainard said of the U.S.-Mexico-Canada trade agreement.

She said U.S. officials are already in talks with Mexico officials and they share U.S. concerns about China using Mexico as a platform to ship into the U.S. at artificially low prices, she said.

© Reuters. National Economic Council Director Lael Brainard speaks during the daily briefing at the White House in Washington, U.S., October 26, 2023. REUTERS/Ken Cedeno/File Photo

Asked about the possibility of a Chinese automaker building plants in the U.S., Brainard said it would happen “with a set of safeguards that we are putting in place now before we confront these problems.”

In response to a question referring to comments about Trump saying he was against the administration’s “EV mandate,” Brainard called that idea “complete nonsense.” She said the U.S. needs to invest in EVs or Americans will have less choice.

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Health Net awarded Medi-Cal dental contract in California

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ST. LOUIS – Centene Corporation (NYSE: NYSE:), a prominent healthcare enterprise, announced today that its subsidiary, Health Net Community Solutions, has been selected by the California Department of Health Care Services to provide managed dental health care services to Medi-Cal beneficiaries in Los Angeles and Sacramento counties starting July 1, 2025. The contract spans 54 months and marks the continuation of Health Net’s role as a provider of both medical and dental coverage in these regions.

Health Net, currently the sole Medi-Cal plan in the aforementioned counties that offers integrated medical and dental care, manages a network of over 1,000 dental providers. The company serves nearly 385,000 dental members and supports the health care needs of approximately 2.2 million Californians, including more than 1.5 million Medi-Cal members.

Centene CEO Sarah M. London expressed gratitude for the opportunity to support Medi-Cal members’ dental health needs through Health Net’s new contract. Health Net Plan President and CEO Brian Ternan also conveyed the organization’s commitment to improving community health and providing essential dental services.

The selection of Health Net is part of a broader strategy to address social determinants of health, aiming to reduce health disparities, enhance outcomes, and improve access to quality care. Health Net’s whole-person care model is designed to meet the comprehensive needs of its members.

Centene Corporation, a Fortune 500 company, focuses on serving under-insured and uninsured individuals through a variety of government-sponsored and commercial healthcare programs. The company’s approach emphasizes local brands and teams to deliver integrated, high-quality, and cost-effective services.

The information in this article is based on a press release statement.

In other recent news, Centene Corporation reported strong second-quarter earnings, with an adjusted diluted earnings per share (EPS) of $2.42, marking a 15% increase from the previous year. The company also raised its full-year premium and service revenue expectations to between $141 billion and $143 billion, indicating optimism about future growth.

In terms of analyst interactions, Jefferies maintained a Hold rating on Centene but lowered its price target to $72.00 from the previous $74.00, reflecting adjustments to the earnings forecasts for the next two years. Wells Fargo, on the other hand, upgraded its price target for Centene from $81.00 to $93.00, maintaining an Overweight rating on the stock. Similarly, TD Cowen increased Centene’s price target from $80.00 to $89.00, also reaffirming a Buy rating on the stock.

In other company news, Centene expanded its Board of Directors with the appointment of Thomas R. Greco, a seasoned leader with over 40 years of experience in public companies. This appointment is expected to enhance Centene’s consumer marketing expertise, aiding the company’s mission to improve the health of its members. These developments highlight Centene’s commitment to its growth strategy, focusing on improving Medicaid operations and marketplace innovation.

InvestingPro Insights

As Centene Corporation (NYSE: CNC) secures a new contract to provide managed dental health care services in California, the company’s financial health remains a key focus for investors. Centene’s aggressive share buyback program indicates strong confidence from management in the company’s value, which is an important consideration for shareholders.

Moreover, Centene’s position as a prominent player in the Healthcare Providers & Services industry is bolstered by its high shareholder yield, a metric that combines dividend payments and share repurchases to show the total payout to shareholders. Although Centene does not pay a dividend, the share repurchases contribute to this yield, rewarding investors and potentially signaling undervalued stock. With a market capitalization of $39.64 billion and a price-to-earnings (P/E) ratio of 14.26, the company is trading at a valuation that reflects its profitability over the last twelve months.

InvestingPro data provides additional context, showing that Centene is trading at a low revenue valuation multiple, with a price-to-book ratio in the last twelve months as of Q2 2024 at 1.45. This ratio suggests that the stock may be reasonably priced relative to the company’s book value. Additionally, Centene has demonstrated a revenue growth of 4.32% in the same period, showcasing its ability to increase earnings over time.

Investors interested in Centene’s future performance should note that 7 analysts have revised their earnings estimates downwards for the upcoming period, which could impact the stock’s near-term trajectory. Nonetheless, Centene’s fundamental strength is evident in its recent profitability and the expectation of analysts for the company to remain profitable this year.

For those seeking deeper financial analysis and more InvestingPro Tips, there are 11 additional tips available on Centene Corporation at https://www.investing.com/pro/CNC, providing valuable insights for making informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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