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1,705,878,000 |
2024-01-21 23:00:00+00:00
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{"Bitcoin": [3252]}
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Thai SEC Tightens High-Yield Bond Oversight as Investment Drops After Defaults, Stark Scandal
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https://finance.yahoo.com/news/thai-sec-tightens-high-yield-230000916.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Thailand’s Securities and Exchange Commission is stepping up supervision of high-yield bonds to boost payment safeguards and investor confidence after several recent defaults and a major accounting scandal rocked the the market for speculative debt, a senior official said. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him The SEC is now pro-actively contacting companies as soon as information or news emerges that the regulator views as potentially affecting the ability to service high-yield debt, Secretary-General Pornanong Budsaratragoon said in an interview. Previously, the agency was less active in contacting executives, though it regularly reached out to bond issuers at least three months before their notes expired, she said. Demand for high-yield debt in Thailand has waned after series of payment delays and corporate scandals, including one related to Stark Corp. These sparked calls by investors for more market supervision and monitoring. Thai financial authorities are prepared to implement “appropriate measures” to manage distressed fixed-income debt, the Finance Ministry said earlier this month. “We are trying to prevent any more big surprises that could catch us off guard,” Pornanong said at her office. “Tightening our monitoring efforts should provide more early warning signals on some companies with payment trouble.” Thailand’s corporate bond sales may drop for a second-straight year partly because of concerns related to rising defaults, according to the Thai Bond Market Association. Investors have become more cautious about subscribing to bonds sales of high-risk companies after a series of missed payments, the trade group said. Story continues Italian-Thai Development Pcl on Wednesday won bondholders’ approval to extend the maturity dates for most of its outstanding bonds by another two years amid a liquidity crunch, but the engineering firm had to schedule another meeting because the vote on one tranche lacked a quorum. JKN Global Group Pcl, a media company that owns the Miss Universe beauty-pageant brand, in November petitioned a court for debt restructuring, two months after announcing its inability to fully honor its bond repayments. Pornanong said the SEC, as part of its monitoring boost, will put additional attention on bonds of companies with no credit rating or low grades by requiring more disclosure on financial data, such as cash flow and other ratios. The new requirements are expected to be implemented in the next few months, she said. The slump in high-yield corporate bond sales was a key reason for the 19% decline in total domestic debt sales in 2023, according to data compiled by the TBMA. Companies with junk ratings or no credit assessments sold 92 billion baht ($2.6 billion) of bonds last year, a 29% drop from a record 130 billion baht in 2022, the data show. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,878,159 |
2024-01-21 23:02:39+00:00
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{"Bitcoin": [3029]}
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{}
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Japan Post Joins Insurers Delaying Bond Buying on Lower Yields
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https://finance.yahoo.com/news/japan-post-joins-insurers-delaying-230239718.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Japan Post Insurance Co. is joining other major life insurers in holding off from buying domestic sovereign bonds until yields rise, as speculation lingers that the world’s last sub-zero interest rate policy will end later this year. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Fukoku Mutual Life Insurance Co. and Meiji Yasuda Life Insurance Co. also said last week that they’re avoiding bond purchases for similar reasons. That’s increasing concern that demand will falter at auctions of super-long debt as life insurers are major buyers of these tenors. The Ministry of Finance plans to auction ¥700 billion ($4.7 billion) of the nation’s longest-dated sovereign securities maturing March 2063 on Thursday. The sale will come after demand was weak at offerings of 10-year and 30-year debt this month as lower yields reduced the allure of fixed-income securities. Japan’s 30-year yield has dropped to 1.77% on Friday from a decade high of around 1.9% on Nov. 1. “It is possible to see the 30-year yield rising above 1.8% in the current quarter by pricing in the removal of the negative rate policy,” Hiroyuki Nomura, senior general manager of investment planning department, said in an interview on Friday. “Should the yield climb to attractive levels, we can move up the schedule for next fiscal year and accelerate purchases,” he said. “But we are not planning to buy super-long debt at lower yield levels when the nation is about to change the course of monetary policy.” Local debt yields are facing downward pressure as major overseas monetary authorities including the Federal Reserve and European Central Bank are expected to start cutting interest rate this year. The Bank of Japan is widely expected to stay on hold at a meeting this week, although most economists forecast it will abandon sub-zero rates in 2024 as inflation remains high. Consumer prices gained 2.6% on year in December, staying above the target of 2% since April 2022, according to official data released Friday. The central bank will probably scrap negative rates in April, though “I don’t deny such possibility in March,” Nomura said. A move above zero rate requires the government’s declaration of the end of the deflationary era, which would still take time, he said. Swap markets currently price in less than a 10% chance of a 25-basis-point rate hike at a January meeting and 44% probability in April. That compared with a 57% chance in January and 100% in April, according to prices on Nov. 1, around when yields reached their recent peak. US 10-year benchmark yields also hit a 16-year high late October. Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,879,800 |
2024-01-21 23:30:00+00:00
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{"Bitcoin": [6199]}
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{}
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Asia Hedge Fund Founders Shut Shop for Big Pay at Global Giants
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https://finance.yahoo.com/news/asia-hedge-fund-founders-shut-233000991.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Hedge fund founders in Asia are jumping ship to global giants from Citadel to Millennium Management as the struggles of capital raising and pressure to make higher returns curb the attractiveness for some managers’ solo endeavors. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Torq Capital Management Chief Investment Officer Avinash Abraham is closing his firm to rejoin Citadel as a portfolio manager, while macro manager Ayan Sen returned to Millennium this year, marking the end of his more than five-year stint running his own Navik Capital (Singapore), Bloomberg has reported. Smaller hedge fund firms are facing a difficult capital-raising environment and an increasingly costly war for talent. While there have always been isolated cases and it’s too early to know how many more will follow, high interest rates have driven up expected returns and are forecast to tilt more Asia-based hedge fund entrepreneurs in favor of embracing the bigger global so called pod firms, or platforms. “It’s just hard to get investors on board, harder now than it has been for a long, long time, because so many investors just pile the money into platforms,” said John Mullally, Hong Kong managing director of recruiting firm Robert Walters. While some industry followers were surprised when former Balyasny Asset Management Asia head Abraham announced he was shutting up shop in his December newsletter, others before him have made similar moves. Panich Prompat, now a portfolio manager at Dymon Asia Capital, joined Millennium in 2021 after running his firm for three years. Citadel in 2020 hired back Nick Taylor, who set up his own event-driven hedge fund in Hong Kong after an earlier stint with Citadel. Story continues In the three quarters ending June 2023, hedge fund closures in the region outstripped new starts by at least two to one, according to Preqin Ltd. estimates. There were still more funds shutting than opening in the third quarter of 2023, even as the gap narrowed. Abraham began his investment career as an analyst at Och-Ziff Capital Management, honed his skills at Citadel between 2005 and 2009 before his seven-year Balyasny stint, according to his LinkedIn profile and regulatory records. He founded Torq in Hong Kong in 2016 and won the backing of Blue Pool Capital, which invested billions of dollars for wealthy clients including Alibaba Group Holding Ltd. co-founders Jack Ma and Joseph Tsai. Torq declined to comment further. From a modest beginning of $160 million, Torq expanded assets to a peak of $1.5 billion in the first quarter of 2022. But the firm struggled to recover after a 3.7% loss that year, despite topping the 16.5% slump in a Eurekahedge index of Asia-Pacific stock hedge funds and the fund’s small gain in 2023. Investors once favored hedge funds of a moderate size that specialize in a single strategy and charge lower fees. Fledgling funds often produce superior returns, due to their ability to trade in and out of positions unnoticed, as well as explore profitable opportunities too small for larger rivals. In recent years, however, allocators like pensions and foundations have increasingly gravitated toward large firms whose diverse investment pods help churn out consistent returns, even in market downturns. Since 2017, 55 pod shops have nearly tripled their combined assets to $368 billion, during a period of tepid growth for the rest of the global industry, according to a September report from Goldman Sachs Group Inc. prime brokers. Armed with fresh money and often an ability to pass on some or all expenses to clients, those firms hired aggressively to maintain their edge. They now command 27% of global industry headcount, the Goldman Sachs report showed. In Hong Kong, licensed employees of 10 pod shops surged to 596 by Jan. 12, almost three times the 2019 figure, according to Webb-site.com, which aggregates data from the local securities regulator. Their expansion has been increasing industry pay pressure. Industry veteran and chief executive officer of PAG, Chris Gradel, says some staff from its hedge fund platform business were poached by rivals with eight-figure signing bonuses. Outside direct rivals and banks, the likes of Torq and Pinpoint Asset Management Ltd. have been primary hiring targets, as funds that trade with carefully balanced long and short wagers have historically been a small subset of the Asian industry. Two portfolio managers who were among Torq’s most senior investors from its early days departed for such rivals in the past year. Martin Kronborg was poached by Millennium and Sojiro Konishi is heading to Balyasny, according to the regulatory registry and a previous Bloomberg report. Performance Scrutiny With muted recent performances and senior staff departures, Torq’s assets fell to $693 million, according to the newsletter. In 2019, it abandoned a fee model that passed on some expenses to investors in favor of a 1.7% management fee and 20% performance levy. That meant it would have to dig into its own pocket or raise capital to sweeten compensation packages. Investors are now expecting higher returns from smaller hedge funds. The yield on 90-day Treasury bills — an indicator of what investors can earn from cash, instead of parking money with hedge funds — touched a more than two decade high in October and lingers above 5%. Pod shops are notorious for their high staff turnover. Many job candidates still prefer single-manager hedge funds with bottom-up research styles, longer investment holding periods and job security, said Mullally. Still, “there is a certain degree of inevitability that there will be fewer single-manager shops launched,” he added. “You will see some other single-manager shops inevitably find that it’s just too difficult to lift over time.” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,879,800 |
2024-01-21 23:30:00+00:00
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{"Bitcoin": [5926]}
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{}
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BOJ to Hold as Market Seeks Hints on Inflation Progress Needed to End Negative Rates
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https://finance.yahoo.com/news/boj-hold-market-seeks-lift-233000290.html
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Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- The Bank of Japan is expected to keep its main monetary policy settings steady Tuesday, with attention focused on how Governor Kazuo Ueda assesses progress made toward achieving the sustainable inflation needed for ending the negative interest rate. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout All 51 BOJ watchers in a Bloomberg poll expect the bank to keep its short-term policy rate at -0.1% and leave the parameters of the yield curve control program intact at the two-day board meeting. With growing signs of solid wage growth this year, Ueda’s remarks on the degree of “certainty” of achieving the bank’s price goal will be closely scrutinized at a post-decision press conference. The meeting takes place after economists ruled out the chances for an end to the world’s last negative rate this month in the wake of a major earthquake on New Year’s Day and Ueda’s dovish remarks at the end of December. Also, with Prime Minister Fumio Kishida facing a deepening slush-fund scandal, economists say this doesn’t seem to be the best moment for Japan’s first rate hike since 2007. “The BOJ is already all set to scrap the negative rate, and it’s a question of when,” said Nobuyasu Atago, chief economist at Rakuten Securities and a former BOJ official. “There is no need to rush at the time of a disaster, and it’s most natural to ditch it at the April policy meeting.” Most economists agree, as 59% of BOJ watchers share that view. By that point, the central bank will have been able to study the initial results of highly anticipated spring wage talks. Moreover, a new Tankan business survey, fresh results of hearings by branch managers and several additional sets of CPI figures will give officials more data to reference in explaining any move. BOJ officials have been encouraged by growing signs of wage gains after some big businesses pledged larger raises this year. While the officials still see uncertainties over pay trends at the small firms that employ the bulk of Japan’s company workers, they’re generally optimistic about the outlook for wages, people familiar with the matter said. Read More: Ueda’s Signaling in Focus as BOJ Mulls Timing of Rate Hike That points to a chance of Ueda striking a brighter tone on the probability of attaining sustainable inflation. The chief has said in recent appearances that the certainty of hitting the 2% inflation goal has risen gradually. If that wording were to change even subtly it could trigger sharp moves in financial markets. Story continues With market players easing their expectations for a rate cut by the Federal Reserve this year, the yen has once again begun retreating after a short-lived rally that started in November. If the currency weakens too much, it would drive up import costs and exacerbate household budget concerns. Ueda probably will avoid sounding too dovish in order to help put a floor under the currency. The BOJ usually releases its policy decision and outlook report around noon, followed by Ueda’s press conference at 3:30 p.m. What Bloomberg Economics Says... “Signals from Governor Kazuo Ueda suggest the BOJ will stand pat until it determines that spring pay talks (shunto) between unions and business leaders starting in March lead to wage raises that boost prices sufficiently to secure its goal of 2% inflation.” — Taro Kimura, economist Click here to read the full report. Another key focus will be updated quarterly economic projections. The bank is likely to discuss cutting its forecasts for economic growth and a gauge of inflation due to a drop in oil prices even as their overall assessment of price trends stays intact, people familiar with the matter told Bloomberg earlier this month. That indicates changes wouldn’t much influence how they think about the path of monetary policy. Authorities are of the view that their price projections are already high enough to justify a policy change by being around 2% or higher, and their focus now is on whether the outlook for sustained inflation is sufficiently certain, people familiar the matter said. Other key factors to watch: Ueda has made it clear he won’t directly hint at potential policy shifts at meetings. He reckons market participants can anticipate moves to a certain extent by parsing the BOJ’s economic assessments. Any brighter signs for price growth would indicate the bank is closer to a rate hike. Ueda’s expectations for the result of the spring wage talks are a vital point to monitor. Eiji Maeda, former BOJ executive director, predicts the outcome will surpass last year’s results, when unions won pledges for the highest increases in three decades. The BOJ is expected to revise its projection for consumer prices excluding fresh food lower to around 2.5% from 2.8%. Analysts will study how the bank characterizes any revision. Ueda could highlight the positive aspects, noting that subsiding cost-push inflationary pressure increases households’ purchasing power. Inflation forecasts that exclude fresh food and also energy may be more useful to gauge the BOJ’s view on underlying price trends. Those estimates are expected to be more or less unchanged. Investors are watching for comments on the impact of the 7.6 magnitude tremor that struck northwest Japan. Ueda is likely to indicate no considerable economic effects observed so far, as the bank continues to monitor the situation. The bank is likely to extend a lending program again in light of its continued efforts to support lending activity to aid the economic recovery. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,881,459 |
2024-01-21 23:57:39+00:00
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{"Bitcoin": [1886]}
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{}
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Australian Tycoon Forrest Shuts Nickel Mines After Prices Crash
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https://finance.yahoo.com/news/australian-tycoon-forrest-shuts-nickel-235739662.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Wyloo Metals Pty Ltd., the private nickel producer owned by billionaire Andrew Forrest, is shutting down its Western Australian mines due to a sharp slump in prices for the key transition metal. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout The mines near Kambalda will go into care and maintenance from May 31, the company said in a statement on Monday. Wyloo, which bought the mines only six months ago, informed BHP Group Ltd. that it won’t be able to fulfill a nickel off-take agreement that’s due to expire at the end of 2025, a spokesperson added. Prices for nickel — used to make stainless steel and EV batteries — have slumped in the past year, mainly driven by a flood of cheap supply from Indonesia that’s threatening to disrupt the industry. Earlier this month, First Quantum Minerals Ltd. said it will halt mining at its nickel and cobalt operation in Australia and cut a third of the workforce in response to weaker metal prices and higher costs. The closure of Wyloo’s Kambalda mines comes after BHP, the world’s biggest miner, last week warned it could be forced to write down the value of its nickel to mitigate the crash in prices. Wyloo, which owns assets in Canada and Australia, last year also entered into a joint venture agreement with with IGO Ltd. to produce battery-ready materials at a plant near Perth. Despite the shutdown of the mines, it’s studying developing its own nickel concentrator in the Kambalda region, Wyloo said in the statement. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,881,620 |
2024-01-22 00:00:20+00:00
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{"Bitcoin": [7909]}
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{}
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A Rewiring of the World’s Biggest Bond Market Will Transform Trading
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https://finance.yahoo.com/news/rewiring-world-biggest-bond-market-000020420.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- After years of regulatory tinkering, Washington is now forcing through the most rigorous overhaul of the world’s biggest bond market in decades. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Securities and Exchange Commission Chair Gary Gensler, who once oversaw federal debt management at the US Treasury, has championed a move to require the vast majority of Treasuries trading to migrate to a central counterparty clearinghouse — an intermediary between buyers and sellers that assumes ultimate responsibility for the transaction. The phased-in process culminates in mid-2026 with the inclusion of all repurchase agreement transactions — a key tool used by hedge funds in the popular so-called basis trade that’s drawn scrutiny from Washington. The initiative amounts to one of the most consequential efforts since a regulatory revamp in the wake of a 1991 Treasury auction scandal involving the now-defunct Salomon Brothers. Once complete, it should minimize the danger of contagion from a shock collapse of any one financial institution. It’s akin to what authorities already did with interest-rate derivatives after the downfall of Lehman Brothers, which wreaked havoc in global money markets. Because the clearinghouse assumes responsibility for completing transactions, it reduces the risk of a counterparty being unable to complete a deal. But the reduction in systemic danger will come at a price: dealers will face higher risk-management costs as the SEC also tightens rules governing clearinghouses. And, as dealers will collectively be on the hook for any one counterparty going down, they’re also likely to do more due diligence on clients. New collateral and margin rules may also mean less day-to-day liquidity. Story continues For Gensler and fellow regulators, the move is key to strengthening resilience in the $26 trillion US Treasuries market, which has been roiled several times in recent years by sudden freezes in trading. Only about 13% of the $700 billion-a-day in cash Treasuries trading fully runs through the market’s sole clearinghouse — the Fixed Income Clearing Corp. (FICC) — helping convince authorities that a graduated phase-in was needed. “It is going to transform the way people interact with the market and the way that the market functions,” said Nathaniel Wuerffel, head of market structure at Bank of New York Mellon Corp. and former head of domestic markets at the Federal Reserve Bank of New York. “This is by far the biggest of the reform efforts that regulators have been working on over recent years.” In past episodes of stress, “market participants start to pull back from their counterparties because they’re worried about counterparty credit risk,” Wuerffel said. While that will be reduced going forward, the additional risk-management costs involved in the new regime mean “on a day-to-day basis, liquidity is going to be slightly less continuous than it has been in the past.” Hedge funds got a partial win in the SEC rules unveiled last month — they were exempted from using central clearing for cash trading of Treasuries. But they are far more active in the repo market, which they use for leveraged bets such as in the popular basis trade. Repos amount to about $4 trillion on average a day, and only around 20% of that currently runs through a central counterparty clearinghouse, or CCP. “A lot of finance doesn't lower risk — it just moves it to parties more willing and able to hold it for a price,” Gensler said in an interview last week. “Higher volatility in the underlying market coupled with high leverage is where you can see shocks in a system,” he said. “Central clearing is one of those things in finance that, on net, lowers risk.” CCPs will be required to establish standards for margins that dealers must post for their trades, separate from what they might have been setting for their customers. That may end up crimping hedge funds’ basis trades, where leverage is used to take advantage of price differences between Treasuries and futures. QuickTake: What’s the Basis Trade? Why Does It Worry Regulators? “Repo is the major funding source for a lot of the basis trades, and a lot of the market scares over the last decade were due to repo shocks,” said Kevin McPartland, head of market structure research at Coalition Greenwich. Today, there’s only one CCP for Treasuries — the FICC, a subsidiary of the Depository Trust & Clearing Corp. While there’s potential for new entrants, central clearing is a capital-intensive business and costly to set up. That leaves risk concentrated in the single current operator. “We see this expansion to broaden participation in central clearing as a natural evolution that FICC is well-positioned to execute on,” a DTCC spokesperson said. A key element of CCPs involves a collective backstop in the case of one member’s demise — not unlike the federal deposit insurance kitty that banks pay into. The CCP pools members’ capital to ensure that losses at one firm don’t harm others. The platforms also have what’s called a default fund, known as a waterfall, where bank members deposit cash and securities to be held in reserve as an additional level of loss protection. While members must pony up to that reserve, one advantage of the CCP platform is a broader netting out of trades between market participants each day. That potentially could encourage dealers such as big banks to engage in more Treasuries trading. And that in turn could work to boost liquidity — the ease of being able to buy or sell. “In theory, clearing should free up balance sheets at the primary dealer level through the netting process,” said Amar Reganti, a former deputy director of the Treasury’s Office of Debt Management who’s now a fixed-income strategist at Wellington Management. “That’s a benefit.” It may be particularly helpful in a world where big banks haven’t expanded their trading capacity at anywhere near the magnitude of the growth of the market itself. That’s in part thanks to the 2014 introduction of the so-called supplementary leverage ratio rule — which compels financial institutions to hold capital against their portfolios, including inventories of Treasuries. Big banks are also now facing prospects of tighter capital rules from the Fed. “While central clearing of repo and Treasuries could help improve market resilience, the change is highly unlikely to fully resolve the broader liquidity decline in recent years,” said Gennadiy Goldberg, head of US rates strategy at TD Securities Inc. “Dealer balance sheets remain constrained, increased capital requirements are coming” and Treasury supply keeps rising, he said. Among the awaited next steps are the FICC’s proposed rule changes on issues including margins to bring market structure into line with the SEC’s regulations. Also key: another proposed SEC rule expected to be finalized in coming months that would require proprietary trading firms and other private funds to register as securities dealers. That would force more trading onto a clearinghouse. The Inter-Agency Working Group on Treasury Market Surveillance (IAWG), spanning multiple agencies, has also pushed through other measures — including a US Treasury plan to begin later this year to buy back some existing securities, in part aimed at bolstering liquidity. “The SEC’s new central clearing rules are an important part of the IAWG’s work to improve Treasury market resilience,” said Josh Frost, the Treasury’s assistant secretary for financial markets. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,881,660 |
2024-01-22 00:01:00+00:00
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{"Bitcoin": [3227]}
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{}
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UK Home Sellers Made £100,000 Profit Per Deal Even In Tough Year
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https://finance.yahoo.com/news/uk-home-sellers-made-100-000100626.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- UK home sellers made a tidy profit last year, though the gains were smaller as a double whammy of high interest rates and a cost-of-living squeeze sapped demand. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The average gross profit on a sale in England and Wales dropped about 9% to £102,650 ($130,100) in 2023, from roughly £113,000 in 2022, according to a report from broker Hamptons International. That’s still a bumper gain compared with the average over the past nine years, but shows how discounts hurt earnings during a period of weak demand. “The numbers illustrate how the scale of historic price growth sheltered movers last year,” said Aneisha Beveridge, head of research at Hamptons. “Many households who bought a home between 2014 and 2016, predominantly in prime central London, face selling at a loss which has reduced sales numbers.” Read more: One in Four UK Homebuyers Clinch Discounts of More Than 10% UK housing remains under pressure from a series of interest rate hikes, with many prospective homeowners priced out of buying a property due to higher borrowing costs. One in four deals involved a price reduction of more than 10% in November, according to a separate report from property portal Zoopla. Still, the average seller in England and Wales made a 48% gain last year, albeit down from 54% in 2022, Hamptons said. The decline was largely due to a small dip in house prices in the past 12 months, and the fact that vendors are moving sooner — therefore limiting the build up of value in their home. Some 72% of Londoners who sold a property bought in 2016 last year earned a profit, compared with an average of 88% for all vendors across the city. That’s because the average property in the capital’s most affluent postcodes still costs less than it did when the market peaked eight years ago. Read more: UK Lenders See Growing Mortgage Demand Even as Defaults Rise Regardless, 93% of UK households sold their home for profit in 2023, and optimism that the Bank of England will cut interest rates this year may facilitate higher gains. This month, broker Knight Frank revised its UK house price forecast to growth in 2024, while researcher LonRes noted an “improving outlook” for prime London sales. Of the households that sold a home bought in 2021 last year, two thirds did so in a small town or the suburbs — exceeding the typical average. Meanwhile, 12% of vendors sold houses in the countryside, compared to a longer-term average of 9%, suggesting an unwinding of the pandemic-driven race for space. Story continues “Most of these sellers are selling larger homes in the country, often in favor of a move back to the suburbs or city,” Hamptons’ Beveridge said. “We expect prices to start rising in London later this year which may start to unlock some of these moves.” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,881,660 |
2024-01-22 00:01:00+00:00
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{"Bitcoin": [3040]}
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{}
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Hedge Funds Cap a Bumper Year for Profits
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https://finance.yahoo.com/news/hedge-funds-cap-bumper-profits-000100892.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Billionaire money managers Chris Hohn and Ken Griffin led hedge funds to deliver one of the best years for clients in 2023. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The industry produced combined gains worth $218 billion after fees, according to estimates by LCH Investments, a fund of hedge funds. Hohn’s TCI Fund Management made $12.9 billion to top LCH’s rankings, followed by Citadel, which made $8.1 billion. The annual survey focuses on money managers with the most overall profits in absolute dollar terms since inception, and as a result the largest and oldest hedge funds typically tend to do best. The top 20 firms, which oversee less than a fifth of the industry’s assets, generated $67 billion or roughly a third of the gains last year. As measured by a more traditional way of assessing returns, the top grouping gained 10.5% in 2023, outperforming the average hedge fund which returned 6.4%. Over the past three years, the top 20 have generated 83% of the absolute gains made by all hedge fund managers, the report found. “In most cases this reflects an ability to limit the downside in adverse conditions and to make money when conditions are favourable, as they were toward the end of 2023,” Rick Sopher, chairman of LCH, said in a statement. “These managers have been generating above average performance over several decades reflecting the persistence of their superior returns.” The report also shows the dominance of large multistrategy hedge funds that have been gobbling up assets, talent and leverage in recent years, causing unease among regulators, investors and traders. Read More: Citadel and Peers Face More Scrutiny as Pod Shop Risks Grow Story continues Citadel, Izzy Englander’s Millennium Management, and D.E. Shaw & Co. lead the rankings for most money made since launch. Over the past three years alone, the trio generated $71.2 billion of gains representing 38.3% of the total profits of all hedge funds. They managed 4.6% of industry assets at the end of last year, LCH estimates. “Firms of this type typically run with leverage levels far higher than the average hedge fund, which has helped boost their performance,” Sopher said. “Their strong net returns have been achieved after passing on substantial operating costs, which continue to be tolerated by their investors. The sustainability and acceptability to investors and regulators of the risks involved in these models is rightly coming under scrutiny.” Top 20 Managers Ranked by Profits in 2023 Source: LCH Investments; Gains are in billions of dollars Note: * Denotes gains frozen when all outside capital returned Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,883,033 |
2024-01-22 00:23:53+00:00
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{"Bitcoin": [5167]}
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{}
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Gloom Over China Assets Is Spreading Beyond Battered Stocks
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https://finance.yahoo.com/news/gloom-over-china-assets-spreading-130000159.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Skepticism over Chinese assets is spreading beyond stocks, with investors expecting the yuan and government bonds to underperform in a year when the Federal Reserve’s dovish pivot is set to buoy emerging markets. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Bearish sentiment toward China has intensified as the latest data confirmed the world’s second largest economy remains in the doldrums. While the gloom adds impetus for the People’s Bank of China to lower interest rates, investors say the monetary authority has less room to cut than its major global peers, whose borrowing costs are now at multi-year highs. “We expect the yuan to remain under pressure in the near term given the bearish expectations for China growth this year,” said Ken Cheung, chief Asian currency strategist at Mizuho Bank Ltd. in Hong Kong. “Bonds will remain supported as the PBOC will maintain an easing bias. However, renewed yuan depreciation pressure and narrow net interest margin among Chinese banks will limit the room for rate cuts.” As China falls out of favor, traders see multiple reasons to be more positive toward its EM peers. Higher-yielding markets will have more room to gain from the Fed’s anticipated rate cuts, while South Korea and India’s potential inclusion into major global bond indexes should give their assets an added boost. Yuan’s Relative Weakness Events over the past week have been a letdown for investors. Despite mounting calls for more stimulus, the PBOC kept its one-year policy rate unchanged, while Premier Li Qiang touted the nation’s ability to achieve economic expansion without resorting to massive stimulus, disheartening hopes for more policy support. While the new-year selloff in Chinese assets has mostly been concentrated in equities, continued foreign outflows will increase downward pressure on its currency. The offshore yuan has weakened more than 1% this year, after dropping almost 3% in 2023. Read more: China Downplays Big Stimulus in 2024, Testing Investor Patience “The yuan can weaken versus the basket of currencies of its trading partners which, for foreign investors, will offset most of the bond performance,” said Rajeev De Mello, a global macro portfolio manager at Gama Asset Management SA. “I prefer local-currency bonds and currencies of countries where policy rates have been hiked preemptively, and where inflation is declining, with Brazil and Mexico standing out.” Story continues JPMorgan Asset Management also sees a weakening bias in the yuan basket against trading partners in the first half of the year and is looking for relative value opportunities, according to Julio Callegari, chief investment officer of Asia fixed income. Economists expect the yuan will retrace some of its losses this year but will again underperform its Asian peers. The dollar-offshore yuan will fall 3% to 6.99 by the end of December, compared with an average 4.4% drop projected for emerging Asia ex-China pairs, according to surveys by Bloomberg. The currency was little changed at 7.2037 Monday after a third straight week of declines against the dollar. The yuan will be “quite an uninspiring currency” in this environment, where the dollar is still strong, said Simon Harvey, head of foreign-exchange analysis at Monex Europe Ltd. in London. Less Attractive Yields China’s government bonds have fared well so far this year, with yields falling as investors pinned their hopes on the PBOC’s easing. Yet markets are increasingly searching for countries that offer higher yields, which stand to benefit once a shift to monetary easing kicks off. China’s benchmark 10-year yield is currently around 2.5%, compared with more than 7% in India, 9% in Mexico and 10% in Brazil. “We are underweight China bonds at this juncture, purely because the yields are higher in markets like India and Indonesia, while US Treasury proxies such as Korea bonds are attractive on the view that Treasuries have more upside from current levels,” said Edmund Goh, investment director of Asia fixed income at abrdn Plc. South Korea’s 10-year yields are the most sensitive within emerging Asia to swings in similar-maturity Treasuries, according to a previous analysis by Bloomberg, making the notes a likely candidate to outperform when the Fed embarks on easing. What to Watch Malaysia, South Africa and Brazil will release inflation data Malaysia is forecast to keep rates unchanged on Wednesday, while South Africa and Turkey will announce rate decisions on Thursday Mexico and Argentina release economic activity numbers for November South Korea will release fourth-quarter advance GDP data on Thursday --With assistance from Ruth Carson, Tania Chen and Wenjin Lv. (Updates with latest yuan moves in the ninth paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,883,400 |
2024-01-22 00:30:00+00:00
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{"Bitcoin": [3050]}
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{}
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Goldman Boosts Backing for Hong Kong Fintech Startup FundPark
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https://finance.yahoo.com/news/goldman-boosts-backing-hong-kong-003000035.html
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Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Hong Kong fintech company FundPark has secured a $250 million private loan with Goldman Sachs as a senior facility provider, signaling a rare bright spot in private credit lending in Greater China. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The asset-backed security facility is an extension and increase of an original $250 million deal that FundPark received in 2022, which was led by Goldman Sachs, bringing the total amount to $500 million, said Hay Yip, the company’s chief operating officer, in an interview. The loan has a three-year duration. In an asset-back security facility, the deal is collateralized by a pool of underlying assets, which in this case is FundPark’s cash flow, the inventory of its customers and receivables, Yip said. FundPark operates its own platform that provides mainly cross-border Chinese mainland small- and medium-size ecommerce companies with working capital. This new liquidity injection will enable the company to provide its existing clients in China with further capital. While China was once seen as a key component of Asia’s private lending market, the nation’s unprecedented property debt crisis has pushed many investors to pull back on their exposure to the country. For international firms still seeking to tap into the world’s second-largest economy, the FundPark deal underscores that pockets of opportunity still exist in the sector, which is valued at more than $1.6 trillion globally. The deal represents “exposure to growth and opportunity in Greater China’s new economy sectors, particularly digital small and medium enterprises which have historically been under-banked,” Yip said. Investment Opportunities Story continues Private credit investors still looking into China are pivoting to opportunities in less levered sectors with better growth prospects, including consumer as well as digital and data sectors. Schroders, an asset management firm, said consumption plays and internet platforms are Chinese sectors that it is looking at for 2024. The popularity of ecommerce in China has made that industry another likely candidate for investors. Firms such as Alibaba Group Holding Ltd. and PDD Holdings Inc. may fuel more than half of China’s retail-sale growth in 2024, up from 37% last year, according to a report by Bloomberg Intelligence analysts. In many ways the FundPark deal highlights “the importance of Chinese SMEs, even as the economy isn’t as rosy as it used to be,” said Yip, who hopes the new facility loan will enable the company to grow its clients’ businesses, while also helping FundPark to expand to new markets like South and Southeast Asia. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,883,820 |
2024-01-22 00:37:00+00:00
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{"Bitcoin": [47, 251, 705, 1132, 1276, 1477, 1867, 2037, 2257, 2453, 2547, 2884, 3380, 4108, 4181, 4379, 4470, 4908, 5169, 5333, 6610, 6687, 6833], "BTC": [64]}
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{"Bitcoin": [75]}
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Is Coinbase in the Crosshairs? The Multimillion-Dollar Dilemma It Faces as Bitcoin ETFs Surge in Popularity.
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https://finance.yahoo.com/news/coinbase-crosshairs-multimillion-dollar-dilemma-003700398.html
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Motley Fool
|
http://www.fool.com/
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Before Jan. 10, the only means of gaining true Bitcoin (CRYPTO: BTC) exposure was by directly purchasing the cryptocurrency off of an exchange, such as Coinbase Global (NASDAQ: COIN) . But now investors can buy shares of one of 11 newly approved spot Bitcoin exchange-traded funds (ETFs) through conventional brokerages. This has created some concern that the ETFs could jeopardize one of Coinbase's main uses and source of income. However, this assumption fails to paint the full picture. Here's why the ETFs will likely be a net gain for Coinbase over the long term. Image source: Getty Images. The new ETF landscape With a crowded field of choices, investors have several options for picking which new Bitcoin ETF they want to buy. Recognizing this, providers are in the midst of a fee war in an attempt to remain competitive and attract buyers. The majority of the ETFs have an expense ratio of 0% and offer fees lower than 0.4%, and some are waiving fees for a period of time. Compared to Coinbase, which charges anywhere from 1.5% to nearly 4% depending on the method of payment, cost-oriented investors would clearly opt for Bitcoin exposure via an ETF. Here lies the potential problem concerned investors are pointing out. Based on the most recent earnings statement, Bitcoin transaction fees made up around 17% of Coinbase's total revenue. Historically, this number has tended to hover around 18% to 20%. While Coinbase offers investors the ability to store purchased Bitcoins on a digital wallet, rather than merely owning shares of an ETF, this isn't a priority for everybody. For many investors, simply having exposure to the cryptocurrency in the form of an ETF is enough and the low fees make them an even better option. As these new ETFs become more popular among institutional and retail investors, Coinbase faces the likely reality that revenue from Bitcoin transactions will decline. But not all hope should be lost. How Coinbase benefits from the ETFs One of the more overlooked aspects of the recent approval of spot Bitcoin ETFs is the role that Coinbase plays. While media attention focused on the big names sponsoring the new funds -- like BlackRock , Fidelity, and Invesco -- a detail was glossed over. Story continues Out of the 11 Bitcoin ETFs now trading on the stock market, Coinbase serves as the custodian for eight of them. This means that Coinbase will benefit from two fees it charges. As the ETF providers buy and sell Bitcoins, Coinbase will receive a 0.2% fee. In addition, it also charges a fee to store those Bitcoins, with a varying cost structure depending on the total value in custody, ranging from 0.1% 0.2 %. These might sound like minuscule numbers, but when considering just how much interest these ETFs have garnered in a short amount of time, those small percentages could begin to add up. Admittedly, we are still in the early days of Bitcoin's arrival on Wall Street, but it remains hard to dismiss just how much activity they are generating. Over the first three days of trading, the ETFs registered over $10 billion in volume. Furthermore, two of them -- BlackRock's and Fidelity's -- at the time of this writing ranked in the top five of total inflow among all ETFs during the past week. Popularity of the ETFs trickled to Coinbase's platform as well. On the day the ETFs were approved, it registered more than $7.5 billion in Bitcoin transactions as investor interest skyrocketed. It was the second-largest single day of trading in the company's history. Quantifying the impact It's difficult to get hard numbers given the newness of the ETFs, but extrapolation of known fees and projected activity can shed some light on just how much money Coinbase could generate from its integral role. One analyst firm estimates up to $30 million in custody fees annually for Coinbase. That isn't very much, considering that during the first three quarters of 2023 it generated over $2 billion in revenue. Yet this assessment overlooks one crucial aspect. Coinbase charges custodial fees based on the total dollar value held in each account. Not the total number of Bitcoins. This holds significant implications over the long term. Should Bitcoin continue its journey of price appreciation -- a reasonable assumption due to its scarcity and current trajectory -- the underlying value of the funds held in custody will appreciate. Should Bitcoin double in price, Coinbase will see those fees double as well. If there is anything Bitcoin's short 15-year history has proved, it's that increases of this size can be a piece of cake. The other aspect that remains even more difficult to quantify, but holds greater implications, is the ripple effect that will occur in the wake of the approval of these ETFs. There is truly no way to estimate how significant of an impact they will have, but one fact remains certain: The approval stands as a momentous accomplishment in Bitcoin's evolution and holds the potential to accelerate market adoption among institutions and eventually trickle down to retail investors. As we saw with the trading surge on its platform in the days after the ETFs got the green light, the legitimization of Bitcoin and crypto in general will inevitably attract more activity and cushion Coinbase's bottom line. Considering the long term While the threat of ETFs stealing Bitcoin transaction revenue warrants concern, the reality is that Coinbase's role as a custodian and position as an industry leader should prove capable of offsetting any declines. But of most importance is the landmark that the ETF approval is. Now the world's most valuable cryptocurrency has a home on Wall Street, and some of the biggest names in the financial industry want a piece of it. As interest in other cryptocurrencies grows and development of new use cases progresses, Coinbase remains one of the key beneficiaries of crypto's evolution. Should you invest $1,000 in Coinbase Global right now? Before you buy stock in Coinbase Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Coinbase Global wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 RJ Fulton has positions in Bitcoin and Coinbase Global. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy . Is Coinbase in the Crosshairs? The Multimillion-Dollar Dilemma It Faces as Bitcoin ETFs Surge in Popularity. was originally published by The Motley Fool
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1,705,884,095 |
2024-01-22 00:41:35+00:00
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{"Bitcoin": [2437]}
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{}
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Macy’s Rejects $5.8 Billion Takeover Offer From Investors
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https://finance.yahoo.com/news/macy-rejects-5-8-billion-004135491.html
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Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Macy’s Inc. said Sunday that it wasn’t interested in a bid from Arkhouse Management Co. and Brigade Capital Management to take over the retailer, claiming the offer lacked “compelling value.” Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The investors made a $5.8 billion, or $21 a share, offer for the company last month and Arkhouse earlier Sunday threatened to take its offer to shareholders if the department store chain doesn’t step up negotiations. The offer represents about a 19% premium to Macy’s closing price on Friday. Macy’s board has determined it won’t “enter into a non-disclosure agreement or provide any due diligence information to Arkhouse and Brigade,” the company said after Arkhouse issued its statement. It said that information provided by the investors failed to address concerns over their ability to finance the transaction. Arkhouse earlier said that advisers from all parties had held initial conversations and financing was discussed. It urged Macy’s to “engage expeditiously in good faith discussions,” pointing out that Macy’s shares had retreated from the high they reached after the offer was unveiled. “We are highly motivated to consummate an acquisition of Macy’s and are prepared to pursue all necessary steps, including direct engagement with stockholders, to achieve this goal,” the investor said. “We encourage the company to respond to us this week.” Read more: Macy’s $5.8 Billion Buyout Bid Follows Litany of Retail Misfires Macy’s has struggled to compete as shopper preference has shifted away from department stores, with online retailers making inroads in key merchandise categories such as apparel and home goods. The New York-based company said Thursday it would lay off about 3.5% of its workforce ahead of the departure of longtime Chief Executive Officer Jeff Gennette. Gennette said in the statement Sunday Macy’s continues “to be open to opportunities that are in the best interests of the company and all of our shareholders.” (Adds comments from Macy’s.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,884,126 |
2024-01-22 00:42:06+00:00
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{"Bitcoin": [3367]}
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{}
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Global stock index gains while US Treasury yields fall
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https://finance.yahoo.com/news/japan-leads-asia-stocks-higher-004206749.html
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Reuters
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http://www.reuters.com/
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By Sinéad Carew NEW YORK (Reuters) - MSCI's global equities index rose on Monday as Wall Street fed on momentum that took it to a new record high last week, while the U.S. dollar index edged up slightly. U.S. Treasury yields fell as investors took advantage of a recent decline in bond prices to enter the market ahead of economic indicators due out later this week that may give new information on the direction of interest rates. The benchmark S&P 500 scaled a fresh record-high after closing at a record on Friday for the first time in two years, confirming it was in a bull market. "If anything, what we're seeing is a carry-over of the strength from the last couple of trading sessions. That's probably starting to get money in off the sidelines," said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management Company. "There could just be some fear of missing out driving this, with a lot of liquidity still to enter into equity markets. Narratives tend to follow prices in the mind of retail investors. The S&P 500 at an all-time high gives them another data point to say things are getting better faster than what we were thinking." The Dow Jones Industrial Average rose 138.01 points, or 0.36%, to 38,001.81, the S&P 500 gained 10.62 points, or 0.22%, to 4,850.43 and the Nasdaq composite gained 49.32 points, or 0.32%, to 15,360.29. The MSCI world equity index, which tracks shares in 49 nations, gained 0.29%. Europe's STOXX 600 index rose 0.77%. In Treasuries, the yield on benchmark 10-year Treasury notes rose to 4.1091% compared with its U.S. close of 4.146% on Friday. The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 4.3932% compared with a U.S. close of 4.408%. In currencies, the U.S. dollar was little changed to modestly higher against a basket of currencies on Monday ahead of central bank policy decisions in Japan and the euro zone that may determine the currency's direction this year. Story continues "Dollar is in a bit of a holding pattern until central banks kick off tomorrow," said Helen Given, FX trader at Monex USA in Washington. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up 0.08% at 103.35. The greenback dropped 0.04% against the yen to 148.08. The European single currency was down 0.1% on the day at $1.0882, having lost 1.4% in a month. The Bank of Japan is expected to keep policy super-easy at a meeting on Tuesday while the European Central Bank (ECB) meets on Thursday and is expected to hold monetary policy steady. Central banks in Canada and Norway also meet this week and no changes to rates are expected, though Turkey is thought likely to hike again. The U.S. Federal Reserve is scheduled to meet again Jan. 30-31. Spot gold prices fell 0.44% to $2,020.36 an ounce as investors rolled back expectations of a U.S. interest rate cut at the end of March, with a surge in equity markets further dampening interest in safe-haven bullion. Oil prices rose as traders saw oil supply tightening due to conflicts in the Middle East and Ukraine, as well as extreme North American cold weather, while the bullish U.S. stock market signalled demand growth ahead. U.S. crude settled up 2.4% at $75.19 a barrel. Brent crude settled up 1.9% at $80.06 per barrel. In crypto currencies, Bitcoin earlier fell to a seven-week low and was last down around 4% at $39,936. Earlier in Beijing, the central bank again skipped a rate cut in its market operations on Monday. China and Hong Kong shares slumped, as relentless foreign outflows and a surge in short-selling pummelled confidence already hurt by the region's creaking economy. China's blue-chip CSI300 Index dropped 1.6% to its lowest closing level in nearly five years while in Hong Kong, the benchmark Hang Seng Index tumbled 2.3% to its lowest level in 14 months. (Reporting by Sinéad Carew, Gertrude Chavez-Dreyfuss, Nell Mackenzie and Wayne Cole; Editing by Kirsten Donovan, Susan Fenton and Rosalba O'Brien)
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1,705,884,791 |
2024-01-22 00:53:11+00:00
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{"Bitcoin": [2934]}
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{}
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Two Australian Resource-Rich Regions Facing Destructive Storms
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https://finance.yahoo.com/news/two-australian-rich-regions-facing-005311952.html
|
Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Two Australian resource-rich regions are bracing for potentially damaging storms that could lead to flooding, the latest threats after months of extreme weather events. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Trump Retires ‘DeSanctimonious’ Insult After DeSantis Backs Him Sony Sends Termination Letter to Zee Over India Merger A tropical low developing in the Coral Sea off Queensland state is likely to become a cyclone by Tuesday, the nation’s Bureau of Meteorology said. The system is expected to cross the coast around the middle of the week, with a severe impact likely. If the storm crosses the coast, the bureau expects it to weaken and move further south over land, which may trigger heavy rainfall near coal-mining regions. Meanwhile, a separate tropical low that’s hit the Northern Territory has now entered Western Australia state and is forecast to impact the Pilbara region in coming days. The system is expected to bring intense rainfall as its slowly moves near or just off the iron ore mining hub’s coast from Wednesday, with a risk it could later strengthen into a tropical cyclone. Multiple areas in the Northern Territory remain on flood watch. These latest threats come just over a month after Cyclone Jasper triggered destructive flooding and winds in the country’s north. The current tropical low in Queensland is expected to cross the coast around the same region that was impacted by Cyclone Jasper. The Insurance Council of Australia declared that event an “insurance catastrophe.” “We would obviously be concerned if there was to be any further impact on those areas that were already hit by Tropical Cyclone Jasper, and that are very much still in recovery mode,” Australian Emergency Management Minister Murray Watt said in a television interview Monday. Story continues Queensland is the nation’s biggest producer of sugar and has a large resources industry. That includes production of metallurgical and thermal coal, LNG, and base metals including copper, lead and zinc. Meanwhile, the Pilbara region hosts massive iron ore operations for companies including BHP Group Ltd., Rio Tinto Group and Fortescue Ltd., as well as LNG projects operated by Chevon Corp. and Woodside Energy Group Ltd. The weather bureau said in October it expected a below-average number of tropical cyclones in 2023-24 due to El Niño. While that pattern often leads to hotter and drier conditions in the continent’s east, the nation’s summer so far has been marked by a prolonged deluge of rain that’s inundated homes and damaged crops from sugar to wheat. Australia’s cyclone season typically runs from November to April. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,887,209 |
2024-01-22 01:33:29+00:00
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{"Bitcoin": [3717]}
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{}
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US dollar flat as Japan, European policy meetings loom
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https://finance.yahoo.com/news/dollar-struggles-retain-gains-even-013329727.html
|
Reuters
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http://www.reuters.com/
|
By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) -The U.S. dollar was little changed to modestly higher against a basket of currencies on Monday ahead of central bank policy decisions in Japan and the euro zone that may determine the currency's direction this year. Japan's yen moved away from Friday's 148.80 per U.S. dollar, its weakest in a month, and rose to as high as 147.61, as the BOJ started its two-day policy meeting. The dollar was last down 0.1% against the Japanese currency at 148.06 yen. Wagers for an exit from negative rates at this meeting have been wound down following the New Year's Day earthquake on Japan's west coast, alongside dovish BOJ commentary. "BOJ Governor (Kazuo) Ueda is likely to tilt against expectations for an April move out of negative-rates territory in the post-decision press conference, and the bank may lower its full-year inflation forecast, pulling the yen closer to the 150 threshold against the dollar," said Karl Schamotta, chief market strategist at Corpay in Toronto. The yen, which is sensitive to the difference in interest rates between the U.S and Japan, has been the worst hit against the dollar this year, tumbling about 5% in a swift reversal of December's bounce to five-month peaks near 140. "It's incredibly unlikely they'll (BOJ) actually touch their benchmark policy rate, but comments from currency officials are proving to once again have a bit of weight on the (dollar/yen) pair," said Helen Given, FX trader, at Monex USA in Washington. "We'll have to see whether Ueda mentions FX pricing in his press conference following the decision. To put things into context though, this is a relatively small retracement to the losses JPY has taken so far this year." Traders said one factor also driving the yen moves was the expiry of a large amount of currency options this week and the hedging around those contracts. LSEG data showed strike prices between 147.15 and 148.10 dollar-yen levels this week totalled around $2.6 billion. Story continues The European Central Bank is also holding a policy meeting this week and is expected to leave rates unchanged at 4%, with ECB officials saying it is too early for rate cuts. With the ECB likely to remain data-dependent, investors will focus on the tone of the policy statement and President Christine Lagarde's press conference. The euro was last down 0.1% on the day at $1.0883. Speculators pared back net long positions on the euro to their lowest since early November, data from the Commodity Futures Trading Commission showed last Friday. The dollar index was flat to slightly higher at 103.34. It has gained the most among developed market currencies in January, rising about 1.8% from the start of this year. Its rally, however, has been up and down as investors try to make up their minds about when the Federal Reserve will start cutting rates. Data late last week showing U.S. economic activity remains resilient despite interest rates at their highest level in decades caused markets to scale back expectations of rate cuts beginning as soon as March. The U.S. rate futures market on Monday priced in a roughly 40% chance of a rate cut at the March meeting, down from as much 80% 1-1/2 weeks ago, according to LSEG's rate probability app. For 2024, futures traders are betting on five rate cuts of 25 bps each, compared with expectations of six two weeks ago. In cryptocurrencies, bitcoin fell below $40,000 for the first time since early December, as investors continued to book profits following the U.S. approval of spot bitcoin exchange-traded funds a few weeks ago. The world's largest cryptocurrency in terms of market capitalization dropped to $39,335.37, the lowest level since December 4. Bitcoin was last down 3.5% at $40,284. So far this year, bitcoin has fallen 5.3%. (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Alun John in London, Vidya Ranganathan in Singapore, and Kevin Buckland in Tokyo; Editing by Sharon Singleton, Kirsten Donovan and Cynthia Osterman)
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1,705,890,228 |
2024-01-22 02:23:48+00:00
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{"Bitcoin": [2624]}
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{}
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Nvidia CEO Makes First China Tour in Years as US Curbs Roil AI
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https://finance.yahoo.com/news/nvidia-ceo-makes-first-china-022348791.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Nvidia Corp. co-founder Jensen Huang celebrated the new year with staff during his first trip to China in four years, a low-key tour that coincided with growing concerns about Beijing’s ability to get around US chip restrictions. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion India Tops Hong Kong as World’s Fourth-Largest Stock Market Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout He visited Nvidia’s offices in Shenzhen, Shanghai and Beijing earlier this month, according to a person familiar with the matter. Images and video of the 60-year-old donning colorful traditional garb and dancing with staff emerged online over the weekend. It wasn’t clear if he’d held formal meetings with other executives or officials, said the person, who asked not to be named discussing a private visit. Huang embarked on his tour — first reported by state newspapers off Chinese social media posts — as Nvidia’s artificial intelligence accelerators become pivotal in a tech race between Washington and Beijing. Huang has warned that an escalation in sanctions designed to cut off the flow of AI training chips could drive Chinese firms to develop their own alternatives. That could harm American tech leaders in the long run, he has said. The Nvidia co-founder name-checked Huawei Technologies Co. — which in 2023 alarmed Washington by including an advanced made-in-China processor in a smartphone — as a potential rival. Read More: US Looking Into Nvidia’s AI Chips for China, Raimondo Says An Nvidia representative confirmed Huang had celebrated the upcoming Lunar New Year with staff, without elaborating. Nvidia, which more than tripled its market value in 2023 thanks largely to its pivotal role in AI development, is up another 20% this year as investors bet on its sector leadership. It’s designed versions of its semiconductors for China that it says are compliant with successive rounds of US sanctions, as Washington watches closely. Among the social media posts, one person describing himself as an Nvidia staffer shared an image of Huang handing over a raffled Nvidia GeForce RTX 4080 graphics card. The CEO has since moved on to Taiwan, according to local newspaper EDN, for his fourth visit to the island in less than a year. Read more: Nvidia’s Red-Hot 2024 Start a Bright Spot as S&P 500 Eyes Record Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,890,411 |
2024-01-22 02:26:51+00:00
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{"Bitcoin": [4992]}
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{}
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Chinese Banks Hold Rates, Expectations Rise for Easing by Spring
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https://finance.yahoo.com/news/chinese-banks-maintain-lending-rates-011750324.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- China’s commercial lenders held their benchmark lending rates in line with the central bank’s recent move to maintain borrowing costs, as attention shifts toward the likelihood of more easing in the coming months. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The one-year loan prime rate was kept at 3.45%, matching the consensus forecast among economists surveyed by Bloomberg. The five-year rate — a reference for mortgages, was also held at 4.2% as projected — data from the People’s Bank of China showed. Last week, the PBOC refrained from trimming the rate on its one-year policy loans. Beijing has been reluctant to flood the economy with monetary stimulus despite the nation experiencing its longest deflationary streak since the late 1990s. While cutting rates can boost dwindling confidence, policymakers have to balance any easing with the need to guardrail the nation’s massive banking system and safeguard the yuan. The Federal Reserve’s next moves are also a factor, with the US central bank recently pushing back against speculation for rate cuts as soon as March. “Banks are not ready to cut in January, “ said Xing Zhaopeng, senior China strategist at Australia & New Zealand Banking Group Ltd. He also cited a deterioration in net interest margins for banks as a “big concern.” Those pressures suggest lenders may need more time to reduce their funding costs before being able to absorb the impact of lower borrowing rates. Chinese stocks traded slightly lower Monday morning to under-perform against their regional peers. The onshore benchmark CSI 300 Index lost as much as 0.5%, compared to a 0.7% gain in the MSCI Asia Pacific Index. Story continues The Chinese yuan was little changed both onshore and offshore, though has slipped for three consecutive weeks as the US dollar gains strength. The yields on 10-year China government bonds were little changed at 2.5%. The steady rates also illustrate a desire to ensure the existing amount of credit within the financial system is used efficiently. Fast-growing money supply has yet to translate into a significant improvement in actual borrowing. The LPRs are based on the interest rates that 20 banks offer their best customers. They are quoted as a spread over the central bank’s one-year policy rate, or the medium-term lending facility rate. The PBOC, which publishes the LPRs monthly, is seen as having significant sway over them. Investors have so far been underwhelmed by Beijing’s policies to keep economic momentum going. Official data released last week failed to shake off several of the concerns most persistently weighing on the world’s second-largest economy. While China hit its roughly 5% growth target last year, it’s recording its worst deflationary streak since the Asian Financial Crisis. Home prices fell last month by the most since 2015, underscoring the scale of the real estate crash. Analysts do expect the central bank to eventually ease policy through rate cuts or trims to the reserve requirement ratio, the amount of cash banks must keep in reserve, though the timing of such actions is up for debate. Raymond Yeung, ANZ’s chief economist for greater China, said he sees a RRR cut happening before the lengthy Lunar New Year celebrations in February. He also expects the PBOC to reduce the rate on its one-year policy loans in April at the earliest. What Bloomberg Economics Says ... “We see the PBOC trimming rates by 10 basis points this quarter, which should lead broader lending rates down as well. Sluggish growth and increasing deflationary pressure show the economy needs stronger policy support — and quickly. An expected cut in the PBOC policy rate would give banks room to trim lending rates.” — Eric Zhu, economist Click here to read the full report. Serena Zhou, senior China economist at Mizuho Securities Co., is expecting interest rate and RRR cuts — though she sees those moves more likely after China’s leaders hold their annual legislative sessions in early March. That will be “when China has a more coordinated plan for bolstering the economy,” she said, adding that the Fed will likely give “a more clear road map in terms of cutting rates,” which will help avoid pressuring the yuan further. Yeung, though, cautioned that interest rate cuts are a “little step” that wouldn’t be enough to solve the nation’s deflationary pressures. “The key remains to stabilize the property market and defend asset prices,” he said. “Structural measures are needed.” --With assistance from Iris Ouyang and Zhu Lin. (Updates with additional comments throughout.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,890,700 |
2024-01-22 02:31:40+00:00
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{"Bitcoin": [3611]}
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{}
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Chinese Exports of Battery Material Graphite Plunge on Controls
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https://finance.yahoo.com/news/chinese-exports-battery-material-graphite-023140567.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- China’s exports of natural graphite, a material used in electric vehicle batteries, plummeted in December after Beijing imposed controls at the start of the month, tightening its grip on the supply of minerals vital to advanced manufacturing. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Overseas sales plunged 91% month-on-month to 3,973 tons, according to Chinese customs data, after a rush to buy ahead of the deadline saw them surge to more than 45,000 tons in November. Exports had averaged about 17,000 tons a month in the year through October. The export restrictions are generally viewed as Beijing’s response to trade barriers raised on Chinese products by Western nations. They apply to materials deemed highly sensitive as so-called dual-use items, a reference to military applications. The curbs were announced just days after the US stepped up efforts to keep advanced semiconductor chips out of China. Exports of synthetic graphite, which aren’t subject to the curbs, fell 28% to 39,763 tons last month. The commerce ministry flagged in the middle of December that some graphite export applications had been approved. Sales should slow notably from December to the Lunar New Year holidays, which fall in mid-February this year, as government approvals take quite a long time, Shanghai Metals Market said last week, citing its survey of domestic producers. Overseas demand also usually weakens toward the end of the year, and that was particularly the case after purchases ramped up in November, it said. Chinese shipments of two other critical minerals — germanium and gallium — also continue to be affected by separate controls imposed earlier in the year on national security grounds. Germanium exports jumped more than four times to 3.36 tons in December from the month before, while overseas sales of gallium surged to 7.03 tons from 1.53 tons. Story continues The minerals are used to make parts for chips, telecommunications equipment and electric vehicles. Some 94 tons of gallium and 44 tons of germanium were exported by China in 2022. The Week’s Diary (All times Beijing unless noted.) Monday, Jan. 22: China sets monthly loan prime rates, 09:15 Tuesday, Jan. 23: Nothing major scheduled Wednesday, Jan. 24: CCTD’s weekly online briefing on Chinese coal, 15:00 Thursday, Jan. 25: Cnooc’s 2024 strategy briefing in HK, 17:50 Friday, Jan. 26: China weekly iron ore port stockpiles Shanghai exchange weekly commodities inventory, ~15:30 Saturday, Jan. 27 China’s industrial profits for December, 09:30 On the Wire China and Democratic Republic of Congo are discussing $7 billion in financing as part of a renegotiated minerals-for-infrastructure deal, President Felix Tshisekedi said Saturday at his second inaugural address in the capital, Kinshasa. Chinese battery makers, including CATL, and lithium stocks may fall after the US banned the Defense Department from buying batteries produced by China’s biggest manufacturers. China’s commercial lenders held their benchmark lending rates steady on Monday, in line with the central bank’s decision to maintain policy rates amid concerns over pressures on the yuan. --With assistance from Ailing Tan and Kathy Chen. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,891,658 |
2024-01-22 02:47:38+00:00
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{"Bitcoin": [2860]}
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{}
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Australia’s PM Albanese Plans Cost-of-Living Blitz to Reverse Poll Slump
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https://finance.yahoo.com/news/australia-pm-albanese-plans-cost-024738574.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Australian Prime Minister Anthony Albanese has called ruling-party lawmakers to Canberra for an unscheduled meeting on cost-of-living pressures, as part of a renewed drive to combat inflation that the government hopes will reverse its slide in opinion polls. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Center-left Labor party members will discuss potential solutions to voter concerns about persistent price increases at a meeting on Wednesday, two weeks ahead of the planned 2024 opening of Parliament in early February. Then on Thursday, Albanese will address the National Press Club, where he is expected to make policy announcements to help ease cost-of-living pressures. “If we can find ways to put extra dollars in people’s pockets, particularly those lower middle income earners who are doing it tough, then we’re prepared to do so,” Albanese said in an interview with Sky News on Monday. Among options being considered are an extension of household energy bill rebates and a potential mandatory code of conduct to ensure supermarkets pass on any fall in prices to consumers. Inflation in Australia remains higher than in many developed counterparts and while it has eased from a December 2022 peak, it’s proving sticky in some sectors. Surveys show the high cost-of-living among the most important issues to voters, with the price of food, energy and rent of particular concern. The government also wants to avoid the Reserve Bank having to raise interest rates further — following 13 hikes since May 2022 — so it’s keen to exert downward pressure on prices wherever possible. Since his election win in May 2022, Albanese has watched his initially high approval ratings steadily slide. In a Newspoll released in November, Albanese’s Labor party had drawn level with the opposition Liberal-National Coalition. As a result, the prime minister has made cost-of-living his primary focus at the start of 2024, stepping up communications via multiple press conferences to highlight his government’s policies to ease the strain on households. The blitz also comes ahead of a March 2 by-election in the seat of Dunkley, in the southeastern state of Victoria. While the government is not at risk of losing its majority in Parliament, the vote is seen as a test for both Albanese and Liberal leader Peter Dutton, and the prime minister is keen to hold onto the seat. Story continues Australia’s next election is due around early 2025. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,891,670 |
2024-01-22 02:47:50+00:00
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{"Bitcoin": [1496]}
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{}
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China Builder Redsun’s Parent Faces Liquidation Court Petition
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https://finance.yahoo.com/news/china-builder-redsun-parent-faces-024750286.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- The parent of Chinese developer Redsun Properties Group Ltd. has received a winding-up petition in a Hong Kong court, joining a growing list of the country’s distressed firms facing legal threats in the city. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The court is scheduled to hold a hearing of the petition against Hong Yang Group Co. on March 27, according to the city’s judiciary website. Serica Agency Ltd. is the other involved party in the case. Hong Yang is the parent of Redsun Properties Group Holdings Ltd., which controls Hong Kong-listed Redsun Properties Group Ltd. Both Hong Yang and Redsun Properties Group Holdings are the guarantors of a defaulted $275 million dollar bond that was originally due in 2022, Bloomberg-compiled data show. Creditors frustrated by the prolonged restructuring progress of some Chinese companies have increasingly turned to Hong Kong courts to recoup their losses. At least three Chinese developers or their units have received liquidation orders from the city’s courts. The winding-up petition case number is HCCW 42/2024. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,892,193 |
2024-01-22 02:56:33+00:00
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{"Bitcoin": [3782]}
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{}
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Amer Sports to weigh raising up to $1.8 billion in US IPO, sources say
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https://finance.yahoo.com/news/amer-sports-weigh-raising-1-023054164.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) — Amer Sports Inc., the maker of Wilson tennis rackets and Salomon ski boots, is seeking to raise as much as $1.8 billion in a US initial public offering, according to people familiar with the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout The company could market about 100 million shares in a range of $16 to $18 each, the people said, asking not to be identified as the information is private. Terms of the potential offering may be announced as soon as in the coming days, the people said. Details of the share sale including size and timing may change, the people said. A representative for Amer Sports couldn’t immediately comment. The listing would be the biggest in the US since a crop of IPOs led by semiconductor designer Arm Holdings Plc’s $5.23 billion offering in September failed to deliver a hoped-for rebound in the market. While Arm’s shares have since gained 54% from the offer price, Birkenstock Holding Plc had gained less then 1% as of Friday, while Instacart and Klaviyo Inc. remained well below their offer prices. The largest IPO since Birkenstock’s $1.48 billion listing in October was Thursday’s $1 billion offering of American depositary shares by investors in Kazakhstan mobile app company Kaspi.kz. Also this month, Smith Douglas Homes Corp. raised about $162 million. Read More: IPO Market Rebound Hinges on Post-Debut Trading, Retail’s Return This week, KKR & Co.-backed BrightSpring Health Services Inc. and clinical stage biopharmaceutical company CG Oncology Inc. are scheduled for share sales. Including a sale of convertible securities, BrightSpring is seeking to raise as much as $1.36 billion on Thursday, the day after CG Oncology’s listing targeting $212 million is set to price. Story continues Amer Sports, which is backed by China’s largest athletic-apparel producer Anta Sports Products Ltd., owns brands including Louisville Slugger baseball bats, Arc’teryx outdoor gear and Atomic winter equipment. From Finland to China Founded in Finland, Amer Sports has bolstered its owned retail footprint to include 138 Arc’teryx stores, 114 Salomon stores and nine Wilson owned as of Sept. 30. It’s also found Greater China to be a spot of growth, driving nearly one-fifth of its total revenue in the first nine months of 2023 with “significant runway for growth in the region” as it opens more stores and scales its e-commerce platform, its filings show. The company had a net loss of about $115.6 million on revenue of $3.05 billion for the nine months ended Sept. 30, according to the filings. It sees a collective market opportunity across its brands of approximately $522 billion as of 2022. Amer Sports has more than 10,800 employees globally, and offices in Helsinki, Munich, Krakow and Shanghai, according to a statement. A consortium led by Anta acquired Amer Sports for about $5.2 billion in 2019 as part of an effort to bring high-end athletic equipment to China’s increasingly wealthy middle class. The buyer group also included Tencent Holdings Ltd. and Chip Wilson, the billionaire founder of yoga-apparel retailer Lululemon Athletica Inc. Amer Sports’ IPO is being led by Goldman Sachs Group Inc., Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley. The company plans for its shares to trade on the New York Stock Exchange under the symbol AS. —With assistance from Bailey Lipschultz and Ryan Gould. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,894,918 |
2024-01-22 03:41:58+00:00
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{"Bitcoin": [1902]}
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{}
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Axiata’s Link Net Considering Sale of Stake in Indonesia Fiber Business
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https://finance.yahoo.com/news/axiata-net-considering-sale-stake-015208952.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Indonesian internet provider PT Link Net is considering selling a stake in its fiber business to raise as much as $500 million to fund an expansion, according to people with knowledge of the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The unit of Axiata Group Bhd., Malaysia’s biggest wireless carrier, is seeking an adviser to help with a potential sale, which could raise $400 million to $500 million, the people said, asking not to be identified discussing private information. Considerations are preliminary and Link Net could decide against a deal, the people said. Link Net declined to comment. A representative for Axiata said Link Net requires capital to accelerate its “fiber build,” but didn’t provide details on the size of the potential fundraising. “Amongst many sources of capital, inviting investors to partner with us in this growth opportunity is one such source,” the spokesperson said. Axiata Group’s shares jumped 3.5% Monday morning, touching the highest in five months. Read More: Malaysia’s Axiata Is Said to Weigh Options for Indonesian Units As part of a non-binding deal in December, Link Net agreed to transfer its fixed broadband business to Indonesian mobile operator PT XL Axiata. Link Net has a market value of about 3.5 trillion rupiah ($224 million). Its share price has fallen 43% over the past 12 months. XL Axiata rose 2.5% Monday. --With assistance from Fathiya Dahrul. (Updates share price moves in fifth and seventh paragraphs.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,897,750 |
2024-01-22 04:29:10+00:00
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{"Bitcoin": [1495]}
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{}
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Australia Orders Return of Livestock Ship After Red Sea Turmoil
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https://finance.yahoo.com/news/australia-orders-return-livestock-ship-042910031.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Australia ordered a ship transporting sheep and cattle to return to the country after turmoil in the Red Sea led to the livestock carrier diverting from its original destination in the Middle East toward Africa. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The exporter has been told to immediately return the animals to Australia to ensure their health and welfare, according to a statement from the agriculture department on Saturday. The livestock are on the Bahijah, which left Fremantle port in Western Australia for Aqaba, Jordan, on Jan. 5. The agriculture department also said that biosecurity risks associated with the livestock and the vessel had been considered, but the agency hasnt identified any basis on which these couldnt be managed within Australia. The Australian government is seeking to phase out the export of sheep by sea to improve animal welfare, following concerns over previous livestock deaths during transport. The live sheep trade has dwindled over the past 20 years. Read More: Red Sea Unrest Is Bad News for Worlds Fragile Food Supply Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,899,600 |
2024-01-22 05:00:00+00:00
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{"Bitcoin": [5283]}
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{}
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EU to Upgrade Economic Security to Shield Key Tech From China
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https://finance.yahoo.com/news/eu-upgrade-economic-security-shield-050000146.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- The European Union will take the next step this week in its effort to recreate itself into a global power that can leverage its massive single market to rebuff coercive actions from the likes of Beijing, Moscow and even Washington. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The EU’s executive arm will unveil a proposal on Wednesday with rules aimed at boosting its power to screen and potentially block foreign investment in sensitive industries — including from foreign-controlled companies within the bloc — as well as considering the creation of a fund to increase the development of technologies that can serve both military and civil purposes, according to a draft of the plan seen by Bloomberg. The Covid pandemic and Russia’s war against Ukraine exposed the EU’s over-reliance on supplies from other nations, as well as trade vulnerabilities with partners that don’t share the bloc’s values. That’s focused attention on the need to defend the EU’s economic security, both to safeguard the supply of imported technology and to make sure that competitors can’t gain control of Europe’s strategic industries. The new strategy seeks to address “risks to EU economic security, while ensuring that the EU remains a most attractive destination for business and investment,” according to the draft, which is still subject to change. The goal would be to strengthen the EU and member states’ ability to address “ongoing risk assessments related to supply chains, technologies, infrastructures and economic coercion.” European Commission President Ursula von der Leyen warned last week of “the greatest risk to the global order in the post-war era.” Read more: Red Sea Shipping Chaos Worsens as US Strikes Broaden Crisis Story continues Critical technologies identified by the EU include advanced semiconductors, artificial intelligence, quantum technologies and biotechnologies. But the commission won’t decide until February whether further action is needed to boost technology security and mitigate risks based on the conclusions of the risk assessments on these areas that run jointly with member states. This week’s package will include five initiatives, including: Strengthening of the foreign direct investment regulation; Coordination of export controls; Options to support the research of dual-use technologies; Ideas to improve research security; First steps toward a new tool to control leaks of sensitive know-how to adversaries through European investments overseas. Assertive Trade The economy the EU is trying to shield is in much worse shape than that of China or the US. The euro area was probably in a recession in the second half of last year and grew just 0.6% in 2023 as a whole. That compares with expansion rates above 5% for China and more than 2% in the US. The economic security package will build on the EU’s efforts to date to become a more robust global actor, even as it remains a champion of multilateralism. Read more: EU, China Raise EV and Liquor Probes in Davos Meeting The commission in 2021 outlined a new trade doctrine in which assertiveness was added to the open and green mix, and it’s expanded its economic toolbox to counter so-called bullies, including China, with a new anti-coercion instrument. Since it started buying key European companies over the past decade — including Germany robot-maker Kuka in 2016 — China’s rise has led the bloc to look for ways to strengthen its economic arsenal. Relations worsened since the EU in 2019 labeled Beijing as a systemic rival, and suspended a bilateral investment agreement amid a tit-for-tat sanction dispute over human rights. As a result, the EU has pursued a strategy of de-risking from China instead of fully decoupling, in spite of pressure from the more aggressive stance taken by the US. But the bloc is also competing with Washington. The two allies have failed to solve a years-long dispute over steel and aluminum tariffs, and are competing for resources and companies to accelerate the development of clean and digital technologies. Read more: How World Fell Into a Subsidy Race for Climate Goals: QuickTake The EU remains at a disadvantage due to its high level of energy dependence and the lack of many of the critical materials needed for the green and digital transitions. The pandemic also exposed the vulnerabilities of the EU’s supply chains. Those tensions have brought efforts to remain competitive in a hostile environment to the top of Europe’s agenda, with trade now seen as an essential tool to secure resources and supply chains, and to cement alliances. The EU’s trade chief, Valdis Dombrovskis, said on Friday that 2024 will be a challenging year, with the war in Ukraine, soon to enter a third year, and the Middle East conflict having the potential to disrupt trade and supply chains even further. --With assistance from Zoe Schneeweiss. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,900,482 |
2024-01-22 05:14:42+00:00
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{"Bitcoin": [2417]}
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{}
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UBS Wealth Arm Says China Stock Recovery Needs Punchier Policies
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https://finance.yahoo.com/news/ubs-wealth-arm-says-china-051442555.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- The benefits of monetary easing by the People’s Bank of China have already been priced in and “punchier” policies are needed to revive the country’s equities, according to the global wealth management arm of UBS Group AG. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Authorities need to adopt a more sustained and “holistic” approach to tackle the core issues that are affecting the economy, said Eva Lee, head of Greater China equities at UBS Global Wealth Management. In the long run, Chinese stocks are still the firm’s most preferred market and expected to deliver a return of around 10% this year. A cut to banks’ reserves or the one-year policy rate has been priced in, and “is not going to really excite the market,” Lee said in a briefing on Friday. In this environment, the money manager is staying defensive on Chinese equities and favors state-owned banks which offer attractive dividend yields, sectors that generate a recurring cash flow and new economy names that are actively buying back shares. The gloom surrounding China’s assets is deepening as a long-running property slump, geopolitical risks and a lack of massive stimulus cloud the outlook. Some $6.3 trillion has been erased from the market value of Chinese and Hong Kong stocks since a peak reached in 2021, while the offshore yuan has weakened 1% this year after dropping almost 3% in 2023. “If there is some sense that maybe the near-term pain is a bit too much that the National People’s Congress can have something punchier, that is the upside to break out of” a defensive stance, Min Lan Tan, head of Asia Pacific chief investment office, said at the same briefing. China’s $6.3 Trillion Stock Rout Getting Uglier by the Day Story continues Investors are looking for larger fiscal steps such as more support through a pledged supplementary lending facility or comprehensive reforms to show that the government is re-prioritizing high growth, and not just keeping the pace of expansion at around 4.5%, Tan added. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,903,438 |
2024-01-22 06:03:58+00:00
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{"Bitcoin": [1991]}
|
{}
|
Russian Tycoon Rybolovlev to Explore Sale of AS Monaco Football Club
|
https://finance.yahoo.com/news/russian-tycoon-rybolovlev-explore-sale-060358413.html
|
Bloomberg
|
https://www.bloomberg.com/
|
(Bloomberg) -- Billionaire Dmitry Rybolovlev has hired an advisory firm to study the possibility of a sale of his controlling stake in AS Monaco football club amid interest from potential buyers. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk French newspaper Les Echos reported on Sunday that Rybolovlev one of a few Russian tycoons who is not under sanctions as he left the country over a decade ago got at least two proposals to sell his stake from American investors last year. Rybolovlevs company appointed investment bank Raine Group to serve as its exclusive financial adviser as it explores strategic alternatives for its stake in the club after receiving unsolicited inbound interest, according to an emailed statement from the tycoons family office. There can be no assurances that the strategic review will result in any transaction involving the club, it added without providing further details. The 57-year-old tycoon, who lives in Monaco and made his fortune in the Russian potash industry, acquired a 67% stake in AS Monaco in 2011 and pledged at the time to invest at least 100 million euros ($130 million) into the club over the next four years. AS Monaco is one of the most successful clubs in Frances top league and has won eight titles so far. Raine has built a reputation as the go-to adviser on large sports deals, most recently on Manchester Uniteds stake sale to billionaire Jim Ratcliffe. In 2022, it handled the sale of Chelsea FC on behalf of Russian billionaire Roman Abramovich. READ: Russian Billionaire Blames Sothebys for Art Deal Frauds Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,906,708 |
2024-01-22 06:58:28+00:00
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{"Bitcoin": [7065]}
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{}
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ASML, STMicro on Cusp of Chip Comeback: EMEA Earnings Week Ahead
|
https://finance.yahoo.com/news/asml-stmicro-cusp-chip-comeback-083639803.html
|
Bloomberg
|
https://www.bloomberg.com/
|
(Bloomberg) -- The clouds appear to be lifting for the global chip industry after a year riven by weak demand and geopolitical pressures, promising relief for ASML Holding NV and STMicroelectronics NV, reporting this week. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk While a meaningful recovery may still be some way off, a bullish outlook from Taiwan Semiconductor Manufacturing Co. last week could be a sign the worst of the downturn has passed. The growing use of artificial intelligence is boosting demand and more chip-making foundries are set to open over the next two years, according to Kepler Cheuvreux analyst Ruben Devos. Global chip sales rose for the first time in more than a year in November. An update from SAP SE, a bellwether for the global software industry, will be screened for clues on corporate spending trends, while reports from Ericsson AB and Nokia Oyj will reflect both sides of the 5G divide as some telecommunications operators pull the budget strings on network investment. All eyes will be on LVMH SE’s sales update for signs of a wider luxury slowdown, and Swedbank AB will kick off the reporting season for Nordic banks. On the food and beverages front, Associated British Foods Plc and Remy Cointreau Cointreau SA are due, as are Swiss electronic devices supplier Logitech International SA and pharmaceutical ingredients manufacturer Lonza Group AG. Highlights to look out for: Monday: No major earnings of note Tuesday: Sluggish spending by telecommunication companies probably pushed Ericsson’s (ERICB SS) adjusted Ebit 22% lower in the fourth quarter. But beating Nokia to a $14 billion contract from AT&T Inc. in December should give its mid-term prospects a much-needed boost, BI said. Investors are also keen to know who will become the new finance chief as the March departure of Carl Mellander fast approaches. Story continues Primark-owner AB Foods (ABF LN) is expected to report a deceleration in retail sales growth at constant currencies to about 11% in its fiscal first quarter. Growth at the tail end of the period was probably slower still, consistent with recent data showing physical stores still lagging online trade, Citi said. Ramping up store openings could help lure more customers to its flagship shops, BI said. New gaming product launches and Christmas demand likely weren’t enough to offset tough year-on-year revenue comparisons for Logitech (LOGN SW), although the pace of decline is estimated to have slowed to 2.1%. A bottoming out in the coming months would herald a fresh start under new CEO Hanneke Faber, but promotional costs and its retail-heavy product mix could wipe at least 50 basis points off the operating margin, BI said. Wednesday: ASML’s (ASML NV) revenue growth might have dwindled to less than 8% in the fourth quarter amid the chip sector slowdown, despite strong Chinese demand ahead of export controls. While sales may take a breather this year, they could see a strong recovery in 2025 as key customer TSMC opens its wallet, BI said. ASML gets about one-third of its revenue from the Taiwanese semiconductor supplier, data compiled by Bloomberg shows. SAP’s (SAP GY) fourth-quarter results will be screened for clues on corporate appetite for cloud migration. Watch for a first glimpse into 2024 targets, which should indicate a modest improvement over 2023, BI’s Anurag Rana says. SAP should continue to profit from clients looking to reduce costs by moving their software to the cloud this year, keeping its order backlog above 20%. Cloud revenue is estimated to jump about 24% this year to more than €17 billion. Swedbank’s (SWEDA SS) net interest income likely climbed about 19% in the last three months of 2023, although that’s only about a third of the pace of the previous quarter. With policy rates set to fall, 2024 could see yet more pressure on the key earnings metric, BI said. And, even if the bank’s CET1 ratio stays well above the regulatory requirement, share buybacks will likely be put on hold until its anti-money laundering probe concludes, probably this year. Thursday: Nokia’s (NOKIA FH) 2024 forecast will be the most sought-after item in its fourth-quarter report, after the Finnish company flagged that it would miss last year’s targets. Sales headwinds have been building as carriers put off spending on 5G technology, so Nokia will have to deliver on “ambitious” cost cuts to keep investors on its side, BI said. Organic growth from LVMH’s (MC FP) fashion and leather goods probably stayed around 9% in the fourth quarter, but wines and spirits likely continued their slump, as demand continues to soften after the post-Covid boom. Any gains this year will probably be weighted to the second half, and LVMH will need to tightly manage higher inventory through the first six months, said BI’s Deborah Aitken. STMicroelectronics’ (STMMI IM) high automotive exposure should help it meet guidance, the only segment expected to have shown positive growth in the fourth quarter, consensus shows. Negative readacross from US peer Microchip Technology Inc. earlier this month may be exaggerated. Automotive chip demand remains resilient, particularly for electric vehicles, according to Citi. Swedbank peer SEB’s (SEBA SS) NII is seen up about 26% in the fourth quarter — the most among Nordic banks — although costs likely expanded at a faster pace than revenue, BI said. Expect NII growth to slip 2% to 3% this year as the Riksbank goes into easing mode, analysts Mar’Yana Vartsaba and Philip Richards said. Friday: Remy Cointreau’s (RCO FP) organic sales are estimated to have fallen 23% in its fiscal third quarter, after weak US demand forced the French distiller to cut its full-year forecast in October. Watch for comment on the US and China, which recently announced a probe into brandy dumping, as the guidance hinges on cognac inventory overhang in the US and the sale of liquors for the Chinese New Year, according to BI. The stock — on a downward spiral since January 2022 — is the biggest decliner in the Stoxx Europe 600 Food, Beverage and Tobacco Index this year. Reality bites for Lonza (LONN SW), still reeling from the drop in demand for Covid vaccines. ZKB analysts estimate a 500 million Swiss-franc ($576 million) contribution to 2023 revenue from the Moderna partnership and a core Ebitda margin close to 30%, thanks to the 200 million-franc termination fee tied to the US company’s exit. But, with growth prospects on hold until 2025, investors will probably stay away until a permanent CEO is named. --With assistance from Christopher Jungstedt, Paula Doenecke, Laura Malsch, Valentine Baldassari, Jenny Che and April Roach. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,908,131 |
2024-01-22 07:22:11+00:00
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{"Bitcoin": [3887]}
|
{}
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Japan Baseline Forecasts Show Government Missing Budget Goal
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https://finance.yahoo.com/news/japan-baseline-forecasts-show-government-025750406.html
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Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Japan is set to miss its long-standing goal of balancing its primary balance in the year from April 2025, according to the government’s own forecasts. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk Japan’s primary balance, which excludes net interest payments on public debt, is projected to be around -0.4% in fiscal year 2025, according to the Cabinet Office’s mid-to-long term outlook report released Monday. The estimated deficit was unchanged from the last update in July. The new figure will add to doubts about the government’s ability to bring its fiscal house in order. Setting a path toward greater fiscal discipline is seen of key importance for maintaining market confidence in the nation’s finances. Japan’s public debt load, at more than twice the size of the economy, is the largest among advanced economies. “The government hasn’t been taking its fiscal position very seriously,” said Toru Suehiro, chief economist at Daiwa Securities. “It toned down its fiscal consolidation efforts amid declining support, and the result is it will once again miss its primary balance goal.” The government said the goal would still be attainable under a high-growth scenario, assuming a continuation of efforts to cut spending. That optimistic scenario envisions Japan achieving robust growth rates comparable to those in the 1980s and 1990s. For the fiscal year starting in April, the government foresees the primary balance at -3%, compared with a -0.8% forecast in the last report, reflecting the impact of increased spending from stimulus packages and other steps. Prime Minister Fumio Kishida’s government has already approved a ¥13 trillion ($87.7 billion) extra budget to fund economic measures and plans to implement around ¥3 trillion in tax cuts later this year. Story continues Without these moves, the target could have been reached on time as tax revenues soared, Suehiro said. Kishida has also yet to make clear how the government will pay for increased defense and childcare spending, , leaving further uncertainty over how the nation’s books will be balanced over the coming years. The estimate assumes the premier will at some point identify a sustainable funding source to cover the scheduled hike. The government continues to see the country’s inflation rate hovering around 2% over the long run under the high-growth scenario, consistent with views expressed in the July report. Under the more realistic scenario, inflation is expected to cool to around 0.8%, gradually slowing from 3% in the current fiscal year. The Bank of Japan also sees price pressures easing over the short-term as the impact of rising oil prices and currency movements softens. The central bank is expected to cut its forecast for the key inflation gauge for the upcoming fiscal year to around 2.5% from 2.8% at its meeting concluding Tuesday. Governor Kazuo Ueda has said inflation will pick up again after the temporary lull, with a key focus being on the strength of annual wage deals culminating in March. BOJ officials consider their price projections sufficiently strong, around 2% or higher, and their focus is on whether they can be certain of sustained price gains, people familiar with the matter have said. Other estimates made by the Cabinet Office: Under the base case scenario, wages are projected to increase 1.7% in FY25, following a 2.5% rise in FY24 The country’s real GDP will likely expand by 1.3% in FY24 and 0.8% in FY25 (Adds economist comment) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,908,805 |
2024-01-22 07:33:25+00:00
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{"Bitcoin": [2241]}
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{}
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Chinese Grilled Fish Diner Chain Considering Hong Kong IPO, Sources Say
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https://finance.yahoo.com/news/chinese-grilled-fish-diner-chain-073325711.html
|
Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Shenzhen Gantang Mingshan Catering Co., the company behind popular Chinese restaurant chains including grilled fish diner Tanyu, is weighing an initial public offering in Hong Kong as soon as this year, according to people familiar with the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk China International Capital Corp. is working with the Shenzhen-based firm on preparations for a listing, the people said, asking not to be identified as the information is private. GTMS, as the company is known, may seek to raise a few hundred million dollars in a share sale, the people said. It currently has a valuation of about 7 billion yuan ($973 million) to 8 billion yuan, one of the people said. Considerations are ongoing and details of the IPO such as size and timeline havent yet been finalized, the people said. Representatives for CICC and GTMS didnt immediately respond to requests seeking comment. GTMS could be joining a handful of Chinese food and beverage companies in seeking listings in Hong Kong this year. Chinese hot-and-sour noodle chain Maliuji selected banks for a potential IPO, Bloomberg News reported in October. Ice-cream and tea chain Mixue Group filed its pre-listing documents with the Hong Kong stock exchange earlier this month. Founded in 2009, GTMS runs four brands including Chua Lams Dim Sum, Chua Lams Pho, Tanyu and Sajiao, according to its official website. It has opened more than 300 restaurants in 67 cities in China. Tanyu has grown rapidly in recent years and now operates more than 260 outlets, its website shows. Chua is among the most famous food critics in Greater China and Southeast Asia. Born in Singapore, he has spent most of his life in Hong Kong. The food critic designs the dishes at the namesake restaurant chains, according to its website. Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,910,499 |
2024-01-22 08:01:39+00:00
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{"Bitcoin": [4510]}
|
{}
|
Nickel Price Crash Seen Extending Indonesia’s Grip on Supply
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https://finance.yahoo.com/news/nickel-price-crash-seen-strengthening-023009162.html
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Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- A prolonged slump in nickel prices is stress-testing producers worldwide, raising the prospect of sweeping mine closures that will deepen Indonesia’s dominance of global supply. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The metal used in stainless steel and electric-vehicle batteries is down more than 40% from a year ago amid a growing global glut. That’s piling pressure on higher-cost operations and could pose the greatest risk to new projects outside Indonesia. So far, the main casualties are in Australia. On Monday, billionaire Andrew Forrest’s nickel producer Wyloo Metals Pty Ltd. said it’s shutting down mines and BHP Group Ltd. said it’s partly closing a processing plant. BHP had warned last week on prospects for its nickel business, while First Quantum Minerals Ltd. suspended a mine. But production in Indonesia — which already accounts for half of global supply — may prove more resistant to output cuts. The Southeast Asian nation has emerged as a global nickel hub after billions of dollars of investment in efficient plants that benefit from inexpensive labor, cheap power and readily available raw materials. “Indonesian projects are more flexible in absorbing the impacts of lower nickel prices,” said Allan Ray Restauro, an analyst at BloombergNEF. That means overall global supply will keep rising despite output curbs elsewhere, he said. Low Prices The flood of new supply from Indonesia in the past two years has overwhelmed demand at a time when metals markets are under pressure from a sputtering global economy. For nickel, softer demand growth from the EV sector is also a headwind, and prices have recently traded near $16,000 a ton, close to their lowest level since 2021. Story continues Mallee Resources Ltd’s Avebury mine in Tasmania, and a project by IGO Ltd. are also at risk, according to BloombergNEF. Calls to the two firms were not immediately answered. Parts of BHP’s Kambalda concentrator will be suspended from June because they can no longer receive ore supply from Wyloo’s halted mines, BHP said. The world’s biggest miner is reviewing its Nickel West business, and last week warned it may be forced to write down the value of the assets. First Quantum said it would suspend its Ravensthorpe nickel facility in Western Australia and cut a third of its workforce. Citigroup Inc. sees nickel falling to $15,500 a ton in the next three months. The bank recently slashed its forecast for average prices this quarter to $16,000 a ton, from $18,000 a ton. To be sure, Indonesia has its own uncertainties. A December accident that killed 21 people has triggered calls in the country for tighter regulation of the nickel industry ahead of a presidential election next month. One of the three candidates to become vice president criticized how the incumbent government has managed the sector during a televised debate on Sunday. Testing Times The announcements by BHP and First Quantum add to other signs of stress. Glencore said in September that it will only keep funding the struggling Koniambo Nickel mine until next month. Nickel plants in the French territory of New Caledonia are seen at risk of closure, the French government said last year. “A lot of supply is still coming in from Indonesia, and we will need nickel prices to go lower to constrain supply growth in Indonesia,” said Nikhil Shah, principal analyst for base metals at CRU Group. Nickel’s woes reflect the dynamics of other battery-materials markets, which have seen prices sink after surprisingly strong growth in supply. Demand for nickel and cobalt have suffered too as EV makers adopt types of batteries that don’t use either of them. Despite the potential for further cuts in mine supply, the market will remain in surplus this year, given higher primary nickel output coming from Indonesia and China, said Jason Sappor, senior analyst at S&P Global Commodity Insights. “We expect nickel prices to remain subdued this year,” Sappor said. --With assistance from Sybilla Gross and Andrew Janes. (Updates with BHP’s concentrator status in third and eighth paragraphs.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,911,820 |
2024-01-22 08:23:40+00:00
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{"Bitcoin": [2104]}
|
{}
|
Russia Becomes Top China Oil Supplier for First Time Since 2018
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https://finance.yahoo.com/news/russia-becomes-top-china-oil-082340622.html
|
Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Russia blew past Saudi Arabia to become the biggest source of Chinese oil imports last year, highlighting the ineffectiveness of Western efforts to deprive the Kremlin of funds for its war in Ukraine. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The worlds biggest oil importer bought a record 107 million tons of crude from Russia in 2023, almost a quarter more than the year before, according to customs data released Monday. That compared with just under 86 million tons from Saudi Arabia. Its the first time Russia has been Chinas No. 1 supplier since 2018, and translates to around 2.15 million barrels a day. Chinese refiners have been eagerly snapping up cut-price Russian crude, despite it being sold at levels above a $60 a barrel Western-imposed price cap. ESPO cargoes from the Russian Far East continue to be popular in China due to the relatively short shipping route. Higher official selling prices have seen processors take fewer Saudi term cargoes, while a recent disagreement with Iranian exporters is further boosting demand for Russian crude. Chinas oil imports from Russia last year were worth $60.6 billion, which equates to an average price of about $77 a barrel, according to Bloomberg calculations based on the customs data. Iraq and Malaysia were third- and fourth-biggest crude suppliers to China last year, the data show. Crude and fuel from sanctioned exporters such as Iran is often classified as coming from the Southeast Asian nation in Chinese government figures. Russia was also top supplier of fuel oil to China last year, shipping 9.6 million tons. Malaysia being the next-biggest exporter, supplying 6.93 million tons. Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,911,846 |
2024-01-22 08:24:06+00:00
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{"Bitcoin": [38, 230], "BTC": [290, 1275]}
|
{"Bitcoin": [28]}
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Trading Volume on Proshares Bitcoin ETF Tanks 75% as Focus Shifts to Spot ETFs
|
https://finance.yahoo.com/news/trading-volume-proshares-bitcoin-etf-082406983.html
|
CoinDesk
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https://www.coindesk.com
|
Daily trading volume in the ProShares Bitcoin Strategy ETF has tanked since spot ETFs went live in the U.S. on Jan. 11. Observers said BITO will remain an integral part of the market as a hedging instrument. Activity in ProShares Bitcoin Strategy ETF ( BITO ), the worlds leading bitcoin [BTC] futures-based exchange-traded fund (ETF), has cooled significantly since the launch of ETFs directly investing in the cryptocurrency began trading in the U.S. on Jan. 11. On Thursday, BITO shares worth just over $500 million changed hands on the NYSE, a 75% slide from the record $2 billion registered on Jan. 11, according to data tracked by crypto exchange Coinbase. BITO has witnessed a net outflow of over $270 million over the same period, according to data source ETF.com . Meanwhile, 11 spot ETFs registered a cumulative trading volume of $14 billion in the first week, a tally bigger than all other ETFs launched in 2023, per Coinbase. These funds have amassed over $1.2 billion in investor money in one week since inception. These spot ETFs invest in bitcoin, allowing investors to gain exposure to the cryptocurrency while bypassing the hassles of storing the same and are considered a better alternative to futures-based ETFs like BITO. Because BITO invests in the CME BTC futures, it must roll over expiring contracts into new ones, incurring roll costs , which weigh over the funds performance in the long run. That said, the cash-creation structure of spot ETFs will likely ensure futures-based ETFs stay relevant, according to some observers. ETFs are created and redeemed in two ways: In-kind and cash creation. In the former, when the ETF issuer wants to create new shares, the authorized participant (AP) buys the underlying securities comprising the ETF and delivers the same to the issuer in return for a block of ETF shares, which can be sold in the open market. The process works in reverse when the ETF wants to redeem shares. The process remains the same in the cash-creation structure, except that APs provide cash to the issuer, and then the issuer purchases the actual asset. Story continues That exposes APs institutions and market-making firms to the risk of bitcoin price fluctuations between when they receive buy orders and when issuers purchase the asset to create new shares. As such, APs are likely to hedge the same with regulated products like BITO and CME futures, according to some observers. It is not unusual for an AP to revert to regulated products such as BITO to hedge their positions (called deltas) as they may not have accounts with CME futures to do so. This is generally considered a good proxy if they cant execute CME bitcoin futures or even outright bitcoin, Laurent Kssis, a crypto trading adviser at CEC Capital and a former ETF market maker, told CoinDesk. The risk of being exposed or unhedged is very high, so BITO will provide decent cover, although it is not a perfect hedge as there is slippage and a decent cost to buy BITO, Kssis added. But many APs wont have a choice (since they cant buy bitcoin or are not allowed to touch them by their compliance dept) or even wont have the infrastructure, i.e., custodian, or back office system to reconcile their positions. David Duong, head of institutional research at Coinbase, said in the weekly newsletter that despite the recent decline in BITOs volume, it will remain an integral part of the bitcoin ETF space. We believe some APs (namely broker-dealers) will continue to rely on regulated means of hedging themselves, such as long CME futures or long BITO when creating shares (or short CME futures if redeeming), Duong said, adding some APs likely bought bitcoin ahead of the spot ETF launch and sold BITO to to hedge potential client buys and sells intraday.
|
1,705,914,000 |
2024-01-22 09:00:00+00:00
|
{"Bitcoin": [175, 363, 474, 771, 843, 959, 1600, 1721, 1787, 2172, 2554, 2618, 2812, 3167, 3540, 3706, 3752, 4000, 4426, 4478, 4638, 5464, 5540]}
|
{"Bitcoin": [5]}
|
This Bitcoin News May Spell Trouble for MicroStrategy in 2024. Here's Why
|
https://finance.yahoo.com/news/bitcoin-news-may-spell-trouble-090000544.html
|
Motley Fool
|
http://www.fool.com/
|
Huge news rocked the cryptocurrency sector last week. After many years of waiting, the Securities and Exchange Commission (SEC) approved investment companies to start listing Bitcoin ETFs that people can buy or sell to get exposure to the world's largest cryptocurrency. Now, there are numerous ETFs that anyone reading this can buy and sell, such as the iShares Bitcoin Trust ETF . While new ETFs will make it easier -- for better or worse -- for people to get exposure to Bitcoin , this could spell trouble for certain companies in the crypto space. One is Coinbase , which earns large trading fees when people buy or sell crypto on its platform. Another is MicroStrategy (NASDAQ: MSTR) , a software company that has pivoted in recent years to bet big on the future of Bitcoin. Here's why these new ETFs may have just ruined MicroStrategy's Bitcoin pivot, and why it may spell trouble for the stock in 2024. MicroStrategy: Unprofitable software, betting on Bitcoin MicroStrategy came of age during the dot-com bubble. It sells business intelligence software, although it hasn't seen much success in recent years. Despite the huge boom in software-as-a-service (SaaS) companies over the past decade, MicroStrategy's software segment has struggled. Revenue has stagnated for years, and in fact, it's actually down compared to 10 years ago. The segment is not consistently profitable, either. Over the first nine months of 2023, MicroStrategy has posted an operating loss of $72 million on just $372 million in revenue. Yet MicroStrategy's stock is up over 250% in the last five years. Why? One word: Bitcoin. The company's former CEO, Michael Saylor, made a huge pivot to treat MicroStrategy as an investment vehicle for Bitcoin. According to its latest update, the company held 189,000 Bitcoin on its balance sheet, which has a value of $7.77 billion at the time of this writing. Given the enthusiasm for cryptocurrencies among a good chunk of the world's population, it is unsurprising to see MicroStrategy's shares up so much in the past few years. Story continues ETFs spell trouble for its strategy Before these ETFs, it was much harder for people to get exposure to Bitcoin without paying high trading fees. On platforms like Coinbase, you might have to pay 1% or more of your purchase in trading fees, which can add up if you are frequently buying and selling shares. MicroStrategy, as a separate publicly traded company that you can buy through commission-free brokerages, ended up as a bit of a loophole for investors looking to get exposure to Bitcoin. Why pay a 1% fee to Coinbase when you can get the same Bitcoin exposure by owning MicroStrategy? Well, that loophole looks unnecessary today with these new ETFs, some of which have annual fees as low as 0.20%. Now, anyone can easily get exposure to Bitcoin as simply as they would for a publicly traded company. With the software business losing money and probably worth little -- if anything at all -- to shareholders, shareholders in MicroStrategy are likely questioning their investment in the company. If you add back the debt, the math doesn't make sense Let's say MicroStrategy was equivalent to a Bitcoin ETF. We can even add that you have confidence in Phong Le as the CEO and that you want to bet on him over the long term. Even if this were the case, MicroStrategy looks overvalued. Key Figure Value MicroStrategy Net Asset Value $5.7 billion MicroStrategy Market Cap $7.6 billion MicroStrategy Premium (discount) to Net Asset Value $1.9 billion Table by Author. Its Bitcoin holdings are currently worth $7.77 billion. Its market cap is roughly $7.6 billion at the time of this writing, which is slightly less than the spot value of Bitcoin on its balance sheet. But to buy this Bitcoin, MicroStrategy has taken out long-term debt worth $2.1 billion, which has an estimated annualized interest expense of $35.5 million. MicroStrategy will have to pay this debt back eventually (in dollars, I might add). Subtract this from its Bitcoin holdings, add back the $45 million in cash on the balance sheet, and MicroStrategy's net asset value held on its balance sheet is under $6 billion -- much lower than its market cap. And it still has an unprofitable software company and these interest payments that it will have to deal with every year going forward. Investors are paying a significant premium when buying MicroStrategy if they want to get exposure to Bitcoin. With much easier methods emerging in these Bitcoin ETFs, it is likely that MicroStrategy shares will run into trouble in 2024. Avoid this stock right now -- there are much better ways to get exposure to Bitcoin these days. Should you invest $1,000 in MicroStrategy right now? Before you buy stock in MicroStrategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and MicroStrategy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy . This Bitcoin News May Spell Trouble for MicroStrategy in 2024. Here's Why was originally published by The Motley Fool
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1,705,915,404 |
2024-01-22 09:23:24+00:00
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{"Bitcoin": [694], "BTC": [82]}
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{"Bitcoin": [65]}
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Solana, Cardano Lead Crypto Market Lower as Traders Grapple With Bitcoin Headwinds
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https://finance.yahoo.com/news/solana-sol-cardano-ada-lead-092324808.html
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CoinDesk
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https://www.coindesk.com
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Prominent cryptocurrencies started the week in the red as fears of large bitcoin [BTC] sales continue to confront investors, who are likely scaling back exposure in the broader market in anticipation of lower prices. CoinDesk 20, a liquid index of the highest traded tokens, slumped 2.86% in the past 24 hours. Solanas SOL and Cardanos ADA fell 5% in the past 24 hours, leading losses among majors. BNB Chains BNB was little changed amid demand for launchpads that require the token on the crypto exchange Binance. Dogecoin [DOGE] initially bucked the broader market weakness amid speculation of adoption in an upcoming feature on social application X but has retreated in the past 6 hours. Bitcoin, the world's biggest cryptocurrency by market value, lost the $41,000 support level early Monday. Traders expect prices to fall as low as $38,000 in the coming weeks, which could lead to more losses in other cryptocurrencies. Recent downward pressure on bitcoin has been attributed to sales stemming from Grayscales GBTC bitcoin exchange-traded fund (ETF), as per some analysts, including Bloombergs Eric Balchunas. Verified wallets belonging to Grayscale, tracked and labeled by analysis firm Arkham, show that the fund moved over $400 million worth of bitcoin to custodian Coinbase Prime on Thursday potentially a step toward an eventual sale , as reported. However, other newly approved bitcoin ETFs are seeing net inflows. BlackRocks IBIT and Fidelitys FBTC ETFs crossed $1 billion last week, data tracked by CoinGlass shows, indicative of buying pressure.
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1,705,916,211 |
2024-01-22 09:36:51+00:00
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{"Bitcoin": [3910]}
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{}
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Vanguard Piles Into Europe Periphery Debt as Rate Cuts Near
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https://finance.yahoo.com/news/vanguard-piles-europe-periphery-debt-070000468.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Appetite for the bonds of nations once at the heart of the euro-area debt crisis is mounting as interest-rate cuts from the European Central Bank approach and finances improve. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Vanguard Asset Management Ltd., the worlds second-largest asset manager, and Candriam, which oversees 140 billion ($152 billion) of assets, are buying up more government bonds from the so-called periphery nations of Portugal, Italy, Greece and Spain. More than a decade on since their soaring yields threatened the future of the euro, the group is viewed as far more fiscally sound, and a growing pool of investors is comfortable holding their debt. While the timing of ECB rate cuts this year is unclear, policy easing is seen as inevitable and is soothing concern about the cost of servicing large debt piles. As inflation and rates have clearly turned a corner last year, we believe money should continue to flow into the European periphery, said Ales Koutny, head of international rates at Vanguard. This month, Koutny has been adding to positions started late last year. Hes now overweight Spanish debt, has extended his overweight position in Greece and also picked up some Italian bonds. Philippe Noyard, global head of fixed income at Candriam, has upgraded Italy and Portugal to neutral from underweight. A key sign of confidence in the periphery came last month, according to Koutny, when markets calmly digested news that the ECB would be accelerating the end of its pandemic-era bond buying program, known as PEPP. It added to the case that debt from smaller euro-zone countries would remain well supported in the medium term, he said. Story continues Spains fundamentals are stronger than markets are pricing, while Greeces return into investment grade status has increased the countrys appeal, Koutny said. Maturities of between five years and 15 years offer the best exposure in both countries, he said. Candriams Noyard, meanwhile, has warmed to Italian debt, praising the governments prudent fiscal stewardship. Tighter Spreads The extra yield investors demand to hold Italys 10-year bonds compared with those for Germany has fallen to the lowest since April 2022, data compiled by Bloomberg show. Noyard says Candriam is comfortable with that level and no longer wants to miss out on the higher carry compared with other sovereign issuers. The decline in Italys yield spread over Germany, the regions main benchmark, was broadly in line with euro-denominated rates, and did not betray excessive fears regarding Italys ability to meet its obligations in a higher rate environment, he said. The spread shrank to 152 basis points on Monday, bringing it closer to Citigroup Incs target of 140-150 basis points later this year. We no longer expect further widening in periphery spreads in the near-term, Aman Bansal, a rates strategist at Citi, wrote in a note at the end of last week. While fundamentals remain a key risk for smaller euro zone countries, a string of downside data surprises would be needed to drive a big widening in spreads, he added. As for Portugal, Candriam took advantage of a recent widening in the countrys spread to add exposure, Noyard said. Valuations look increasingly justified by a strong economic and fiscal outlook, he added. Portugals 10-year yield has climbed from a 16 month low of 2.46% in late December to around 3.15%. (Adds latest narrowing in spreads, comment from Citi; updates chart) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,917,315 |
2024-01-22 09:55:15+00:00
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{"Bitcoin": [2488]}
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{}
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Credit Agricole Takes Stake in Worldline to Bolster Payments
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https://finance.yahoo.com/news/credit-agricole-takes-7-stake-062955709.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Credit Agricole SA acquired a 7% stake in Worldline SA for an undisclosed price to help stabilize its struggling payments partner and strengthen a joint venture announced last year. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger The investment “is intended to strengthen this partnership to create a major player in the French merchant payment services market,” Credit Agricole said in a statement Monday, adding that it plans to remain a “long-term minority shareholder.” Worldline shares rose as much as 6.1% on the news. Bloomberg reported last month that the French lender had been discussing a potential move to buy stock in Worldline after its shares plunged, citing people familiar with the matter. Worldline in October cut its sales outlook, saying consumers are growing more cautious and spending less, hurting the company’s growth and profitability. The shares plunged by 59% that day. The warning added to a string of bad news for the payments industry in Europe, which is grappling with a slowdown after years of growth. The two companies announced in April that they were forming a joint venture in merchant payments, planning to invest about €80 million over the next two years. Worldline would be the majority owner of the unit, holding 50% plus one share. The agreement replaced the French lender’s previous partnership with Wirecard AG, the German company that collapsed in an accounting scandal. What Bloomberg Intelligence Says: Credit Agricole’s acquisition of a 7% stake in Worldline will strengthen the relationship further after the merchant payments joint venture announced in April that will extend its dominant position in France. The minority stake also aims to restore confidence after October’s cut to Worldline’s near-term guidance sent the shares 50% lower. The guidance reset at year-end results in February will be crucial as headwinds continue. Story continues Mar’Yana Vartsaba, banking analyst Credit Agricole’s 7% Stake May Stabilize Worldine’s Ship: React (Updates with share reaction in third paragraph, analyst’s comment in last.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,917,600 |
2024-01-22 10:00:00+00:00
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{"Bitcoin": [6593]}
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{}
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Chile Bond Sale May Tempt Government to Break Issuance Plan Announced Just Three Weeks Ago
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https://finance.yahoo.com/news/chile-bond-sale-may-tempt-100000886.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Chiles dollar bond sale last week was so successful it may tempt the Finance Ministry back into the market later this year, exceeding its plan for hard-currency issuance released just three weeks ago. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger The South American nation priced $1.7 billion of notes due in 5 years at a spread of 85 basis points over similar US Treasuries, tightening from initial price talks of 120 basis points and below Chiles existing yield curve. The sale represented the entire dollar issuance targeted for the year. Although it is not part of the plan, given the positive result, the Treasury could reconsider issuing some additional bonds in foreign currency this year, said Samuel Carrasco, a senior economist at Credicorp Capital. The spread on the 5-year notes was similar to that on 2029 bonds from Saudi Arabia, which is rated two notches above Chile at Fitch Ratings and one notch at Moodys Investors Service. Moreover, demand for the new notes exceeded the amount on offer by 7.5 times. And all that in the context of a selloff in global markets in the first few weeks of this year. Another liability management exercise of the front end of the curve may make sense, especially as rates drop on stronger expectations of a Fed cut, said Nathalie Marshik, a managing director for fixed income at BNP Paribas in New York. In a response to questions, the Finance Ministry said it couldnt ignore the financial cost from the levels of referential rates, when deciding which debt to sell, but that it also took into account the cost of exchange rate volatility and the liquidity of certain bonds. The Plan The ministry said at the start of January that it planned to offer an equivalent of $16.5 billion in bonds this year, 90% of which would be denominated in local currency. The governments goal is to reduce hard-currency debt to 34% of the total from 35.7% at the end of 2023 following a jump during the pandemic, it said. Story continues Chile may opt to offer notes in euros if their peso issuances do not pan out as expected, said William Snead, an analyst at Banco Bilbao Vizcaya Argentaria SA in New York. Still, if they stick to their current financing plan, that could support the performance of the dollar-denominated bonds by limiting supply, he added. The prospect of further hard-currency bonds sales should buttress the peso, which has rallied 1.6% against the dollar since the 2029 notes were issued, more than any other of the major emerging market currencies. Cash-Strapped In selling bonds last week, Chile joined a series of emerging-market countries that have tested investor appetite following the holiday season. But there were more domestic than global reasons for Chile to join the rush, with dollar liquidity in the local market drying up. Chiles new bond issuance was expected by investors, not only helping to cover some hard currency bond obligations due in January, but also helping the Treasury to build its USD position, Snead said. The Finance Ministry had seen its liquid assets fall to levels deemed as critical by analysts at Banco Itau. The Treasury held just $1.1 billion in liquid assets in November, the lowest end-November balance in over a decade. Moreover, the Finance Ministrys dollar balance slid to $301 million from $719 million at end of October. Along with last weeks bond sale, the Finance Ministry also said on Thursday that it had withdrawn $800 million from the sovereign stabilization fund. The recent withdrawal from the Stabilization Fund is the first to take place in the absence of a domestic or global crisis, pointing to the magnitude and persistence of revenue weakness, said Andres Perez, chief economist for Latin America at Banco Itau. The sale also defied concerns that ratings firms will lower the outlook or even the credit score on Chilean bonds after the governments debt burden doubled in the past decade. Fitch Ratings and Moodys Investors Service have stable outlooks, while S&P Global Ratings has a negative outlook. Read more: Fear of Lower Credit Rating Lingers Over Chiles Bonds The spread was quite tight and contradictory to the ratings outlooks, said Marshik. ECONOMIC CALENDAR All events in Santiago local time. Chile: Jan. 24 9:00am: December PPI Jan. 26 8:30am: Central Bank Trader Survey Jan. 26 12:30pm: Bloomberg January Economic Survey International US: Jan. 24: S&P Global US Preliminary January Manufacturing PMI Jan. 25: 4Q Advanced GDP Jan. 26: December Personal Spending China: Jan. 25: Bloomberg January Economic Survey Europe Jan. 24: HCOB Eurozone January Manufacturing PMI Jan. 25: ECB Main Refinancing Rate RECENT NEWS: SQM Is Resuming Chile Lithium Operations After Roadblocks Lifted Enel Chile Authorized to Start Operations at El Manzano Plant Chile Govt Accepts Changes to Pension Bill Proposal From DC Top Copper Nation Ups Price Forecast on Rate Cuts, Clean Energy Chiles Boric Announces Construction of New Desalination Plant Chile May Sell up to $9b in Local FX Spot Market, Credicorp Says Falabella Cut to Underweight at Morgan Stanley; PT CLP1,740 Chiles Aaktei, Uruguays HyNewGen Plan $470M Wind Farm: Tercera Chile Lower House Committee Approves Pension Reform Bill Chiles Revamp of Private Pensions System Clears First Hurdle Chiles S&P IPSA to Outperform Andean Peers, LarrainVial Says Chile Senate Approves Soto as New Member of Central Bank Board Chile Crime Anxiety Spurs Push to Ban Mexican Singer Peso Pluma Chile Govt Presents Bill to Adjust Electricity Prices: Tercera Antofagasta Maintains 2024 Copper Production Forecast Antofagasta Falls on Bigger-Than-Expected 4Q Costs: Street Wrap Lithium Venture in Talks With EV Firms to Invest in Chile Chiles $1.7 Billion Deal Adds to EM Bond Market Resurgence BCI Cuts Recommendation for Chiles Besalco, Raises Socovesa SQM Cut to Hold at BICE Corredores de Bolsa; PT CLP58,456 Latam Airlines Rated New Buy at BICE Corredores de Bolsa Chile Says it Tapped $800 Million From FEES Sovereign Fund InvestChile Registers 18% Jump in Foreign-Funded Projects Korea Battery Makers Eye Chile Lithium Projects to Supply US --With assistance from Sebastian Boyd. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,917,701 |
2024-01-22 10:01:41+00:00
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{"Bitcoin": [4813]}
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{}
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Hong Kong Stocks at 36% Discount Show True Depth of China Gloom
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https://finance.yahoo.com/news/china-stock-selloff-worsens-hong-050429499.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- A rout in Chinese stocks listed in Hong Kong intensified Monday, pushing their discount to mainland peers to the deepest in fifteen years in the latest sign of growing pessimism among international investors. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger The Hang Seng China Enterprises Index fell 2.4%, inching closer to a level last seen almost two decades ago, while the onshore benchmark CSI 300 Index finished 1.6% lower. As a result, a gauge tracking mainland stocks price gaps versus their dual listings in Hong Kong reached the widest since 2009 implying a 36% discount for the offshore market. The steeper losses in Hong Kong, where some of Chinas most influential and innovative firms are listed and Beijings interference is less felt, paint a more worrisome picture of global investor sentiment toward the worlds No. 2 economy. Signs of government intervention to prop up the mainland market have increased in recent weeks as selling pressure continued despite a more optimistic Wall Street, where the S&P 500 Index climbed to a record on Friday. A confluence of factors have been behind the seemingly endless selloff in Chinese shares, ranging from a deepening housing slump to stubborn deflationary pressures, as well as uncertainties about the trajectory of US interest rates. Chinese commercial lenders latest move to keep their benchmark lending rates unchanged, which followed the central banks recent decision to maintain borrowing costs, may also have disappointed investors hoping for more aggressive stimulus. Quite a large number of H share investors are overseas institutional funds and they have reallocated from Hong Kong to Japan and other Asian markets in their Asian allocation, said Redmond Wong, market strategist at Saxo Capital Markets HK Ltd., referring to Hong Kong-listed stocks. Some mainland institutional investors may have more restrictions on how much they can unload and they also tend to have a home bias. Story continues Chinese stocks listed in Hong Kong are often regarded as a better barometer of the health of the worlds second-largest economy and a more accurate gauge of broader investor sentiment. In comparison, trading in Shanghai and Shenzhen is constantly under the influence of meddling by Chinese regulators, from restrictions on anything from short selling or initial public offerings to verbal warnings and direct intervention by state funds. The HSCEI was a little over 1% away from dropping to the lowest since 2005 and Hong Kongs benchmark Hang Seng Index also inched closer to a level unseen since 2009. The biggest drags on Monday included Chinese tech behemoths Meituan and Tencent Holdings Ltd., as well as electric vehicle makers Li Auto Inc. and and BYD Co. The latest declines may be attributable to a lack of catalysts in the near term and outflows to more attractive alternatives in the region, said Marvin Chen, a Bloomberg Intelligence analyst. Global markets have been surging on the chip sector, and this is an area where China and the rest of the world may run on separate tracks due to geopolitical tensions. The mood is similarly fragile in the mainland Chinese market, where the benchmark CSI 300 hit a new five-year low. The slump once again coincided with a jump in turnover on a handful of exchange-traded funds tracking the key indexes, a sign that state-led buyers may be trying to limit declines. The rout is also adding pressure on so-called snowball derivatives, which are structured products that promise bond-like coupons as long as the underlying assets trade within a certain range. The CSI Smallcap 500 Index, a pricing reference for some of these products, slipped 4.7% on Monday, taking it below an earlier estimated threshold that may trigger widespread losses on the snowballs. Less than a month into the new year, the gauge of Chinese stocks listed in Hong Kong has already lost 13%, making it the worst-performing major benchmark in global indexes. In comparison, the S&P 500 has gained 1.5%. READ MORE: Chinas $6.3 Trillion Stock Rout Getting Uglier by the Day The benefits of monetary easing by the Peoples Bank of China have already been priced in and punchier policies are needed to revive stocks, Eva Lee, head of Greater China equities at UBS Global Wealth Management, said at a briefing Friday. (Updates with details on price gap between mainland and Hong Kong shares) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,918,288 |
2024-01-22 10:11:28+00:00
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{"Bitcoin": [2286]}
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{}
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ASML Reclaims Title of Third-Biggest European Stock From Nestle
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https://finance.yahoo.com/news/asml-reclaims-title-third-biggest-101128658.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- ASML Holding NV reclaimed the position of Europe’s third-biggest listed company from Nestle SA after its shares were boosted by an upgrade from Bernstein analysts optimistic about the Dutch chip-equipment firm’s outlook. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Shares of ASML rallied to a two-year high on Monday, valuing the company at about $306 billion, compared with packaged-food giant Nestle at $301 billion. Only Novo Nordisk A/S and LVMH are worth more in Europe. ASML’s share-price gains are underpinned by hopes of a recovery in spending by chipmakers on high-end equipment, after the company forecast that 2025 will see “very significant” growth following a limited increase in revenue this year. Key customer Taiwan Semiconductor Manufacturing Co. has pledged to retain a high level of investment, reflecting strong demand for chips used in artificial intelligence applications. Bernstein analysts Sara Russo and Chris Elias on Monday upgraded their rating on ASML to outperform, as the stock looks “increasingly attractively priced” compared to its peers, they wrote in a note. ASML gained 35% last year, lagging behind the Philadelphia Semiconductor Index’s 60% jump. While the year ahead appears challenging, “it’s looking like a good entry point for ASML given the expected growth in 2025,” they said. Wall Street analysts have turned more bullish on ASML recently. Citigroup Inc. opened a positive catalyst watch on Monday, tipping management to stick with their bullish outlook for 2025. Morgan Stanley, meanwhile, named the stock as a top pick among European semiconductor companies. ASML’s rally faces a test on Wednesday when the company reports fourth-quarter results. Analysts on average expect its quarterly orders to decline by more than 40% from a year earlier, underscoring the challenges confronting near-term demand. Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,919,709 |
2024-01-22 10:35:09+00:00
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{"Bitcoin": [5954]}
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{}
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Modi Hails India’s ‘New Era’ With Opening of Major Hindu Temple
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https://finance.yahoo.com/news/modi-inaugurate-major-hindu-temple-210000948.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Prime Minister Narendra Modi fulfilled his party’s decades-long promise by consecrating a controversial Hindu temple in northern India on Monday, marking a new milestone in the popular leader’s project of reshaping the country into a more avowedly Hindu nation. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Hailing the day as the “dawn of a new era,” Modi took center stage at the opening of the Ram temple in Ayodhya, bringing together religion, politics and spectacle in a style that the prime minister has embraced. The event, which was marked by a last-minute holiday across much of India, helps launch his campaign to lead India for a third term in elections expected within months. As the ceremony kicked off around 12 p.m., the prime minister strode into the inner sanctuary and performed a series of rituals before a newly minted idol of the Hindu god Ram, a statue of about 4 feet (1.2 meters) covered in gold and flowers, and flanked by priests in traditional saffron robes. Modi later addressed a gathered crowd of more than 7,000 guests, including business leaders like Mukesh Ambani, Bollywood icon Amitabh Bachchan and other elites. His entrance to the temple was preceded by helicopters sweeping over the site and showering rose petals on the crowd below. “People will speak and discuss this day and what happened here, a thousand years from now,” Modi told the assembled crowd. Built on the site of a 16th century mosque demolished by a Hindu mob in 1992, the temple has long been a rallying cry for Hindu nationalists, who believe the mosque was built on the site of an older Hindu temple. Devotees believe the site to be the birthplace of the Hindu god Ram. Following a decades-long legal battle between Hindu and Muslim groups, the Supreme Court in 2019 handed a Hindu trust full ownership of the land. Story continues The consecration of the temple, which took place without incident, gives a boost to Modi and his Bharatiya Janata Party, which seeks to elevate Hinduism in Indian politics but which critics say has marginalized Muslims and other minorities. Muslim groups stayed largely quiet as the event unfolded, while some opposition leaders chose not to attend. “Never before had it been made so clear that the barriers that separate politics or the state from religion have been battered,” Gilles Verniers, a senior fellow at Delhi-based Centre for Policy Research, said by phone. “India’s pretense to be a secular republic is now officially of the past.” Modi was joined at the ceremony by a handful of close political allies, including Uttar Pradesh Chief Minister Yogi Adityanath. The Hindu monk-turned-politician told the assembled guests that despite fears of religious violence, “in the lanes of Ayodhya, there will be no sound of gunshots, there will be no curfew.” “It will now be Diwali, Ram’s festival and in the lanes here, just the name of Ram echoing,” he said. Government offices were closed for part of the day to enable employees to participate in the celebrations. The Indian stock market was shut and trading in government securities and money markets was closed. Many Indian states declared Monday a full or partial holiday. Indian media broadcast images of observances across much of the country ahead of the temple’s consecration. Across Delhi, cars with saffron-colored flags bearing images of Ram could be seen cruising the city over the weekend. Neighborhood groups organized viewing parties of Monday’s ceremony and firecrackers popped in celebration. State-run media also posted videos of people waving saffron flags in New York’s Times Square, where a billboard bearing an image of Ram was being displayed in honor of the new temple. Some foreign officials congratulated Modi ahead of the temple’s consecration. David Seymour, New Zealand’s minister for regulation and leader of one of its political parties, called Monday’s ceremony a “wonderful celebration of a monument that will last 1,000 years.” New Zealand’s coalition government has made it one of its priorities to seek a free-trade agreement with India. Israel’s ambassador to India said the temple’s inauguration was “a historic moment for devotees across the world” from his official account on X, formerly known as Twitter. Critics have accused Modi, and the temple project, of eroding India’s longstanding tradition of religious tolerance and pluralism dating back to its independence from British rule in 1947. Modi’s Hindu nationalism has been a pillar for his popularity with voters, many of whom admire his unabashed populism and his administration’s elevation of India on the world stage. The country’s economic growth rate of more than 7% is the envy of the region, its stock market is soaring to fresh records and it is luring foreign investors seeking to diversify away from China. The temple is built in a 70-acre complex at a cost estimated by officials of around $200 million. Much of the temple complex remains a work in progress and officials say its completion is still years away, though they expect Ayodhya to eventually become a magnet for religious tourism. As recently as a few weeks ago, a frenzy of bulldozers were at work widening roads and demolishing old structures, while workers placed finishing touches on new hotels built to accommodate the thousands of new visitors expected to the holy city. Modi inaugurated a new airport in the city last month to ease travel to the city. --With assistance from Ben Westcott and Sudhi Ranjan Sen. (Updates with comments from Modi, additional details.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,920,060 |
2024-01-22 10:41:00+00:00
|
{"Bitcoin": [126, 333, 493, 580, 736, 905, 1061, 1181, 1252, 1412, 1625, 1758, 1956, 2036, 2168, 2519, 2650, 2876, 3586, 3857, 4173, 4216, 4372, 4864, 4921, 4976], "BTC": [143]}
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{"Bitcoin": [4]}
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Can Bitcoin Reach $100,000?
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https://finance.yahoo.com/news/bitcoin-reach-100-000-104100358.html
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Motley Fool
|
http://www.fool.com/
|
There's no doubt that the cryptocurrency asset class has been one of the best-performing in recent times. Just take a look at Bitcoin (CRYPTO: BTC) , whose price has absolutely skyrocketed over the past decade. Even in 2023, the world's most valuable digital asset soared 154%, a gain that crushes the overall stock market. However, Bitcoin remains 38% off its all time high. The bulls aren't deterred; they are encouraged by the momentum. They have their sights set on $100,000 per coin. Can Bitcoin rise 130% from today's levels to reach this major milestone? A favorable setup Bitcoin has been in the news a lot lately. That's because the digital asset achieved something that has long been overdue. And this is the approval of spot Bitcoin exchange-traded funds (ETFs). Earlier this month, the Securities and Exchange Commission finally allowed these financial products to come to market. And perhaps Bitcoin's gain in 2023 was due to the anticipation from the investment community about ETFs being approved. Many are considering this a monumental event in Bitcoin's history, finally making this a legitimate financial asset in the eyes of the government and Wall Street. Spot Bitcoin ETFs now make it cheap and incredibly easy to gain exposure to Bitcoin's price movements. Investors don't have to open a separate brokerage account with a cryptocurrency exchange or worry about self-custody issues anymore. Bitcoin bulls are hoping that the ETFs will introduce a new wave of capital to the asset, which could drive up the price over time. Besides a regulatory stamp of approval, there's another event that should propel Bitcoin to a higher price. Set to happen this April, the blockchain network will undergo what's known as a halving. This is when the Bitcoin rewards that miners receive to approve transactions and secure the blockchain get cut in half. It happens roughly every four years, and it has historically created a bullish environment for Bitcoin. Story continues Just look at the last time this happened. In May 2020, Bitcoin had its last halving event. The cryptocurrency soared in the two months before. And in the 18 months following the halving. Bitcoin skyrocketed 661% to eventually reach its all-time high of nearly 69,000 in November 2021. Should something similar play out this time around, the digital asset could reach a new peak price 12 to 18 months following the upcoming halving. Maybe the $100,000 mark is the new achievement to be had. Solving a problem It's easy to get caught up in Bitcoin's short-term price action, but investors should take the time to understand what makes this cryptocurrency really special. Bitcoin supporters have incredibly strong views about this digital asset because of the problem that it solves. By being a decentralized and global peer-to-beer payments network that isn't controlled by any central authority, Bitcoin is basically trying to disrupt the Federal Reserve and current monetary system. Some people argue that central bankers have caused more harm than good by constantly manipulating interest rates to solve inflationary and economic issues that they seem to not have any grasp over. Plus, consider that the U.S. government currently has $34 trillion in debt, a figure that has surged over the past four decades. This doesn't even include underfunded liabilities like Social Security and Medicare. The thinking is that the government will have no choice but to continue printing money going forward, thus making the debt burden even more insurmountable. This troubled monetary situation seems unsustainable. Bitcoin's properties, mainly the fact that it has a fixed supply cap of 21 million coins, coupled with it not being controlled by anybody, makes it an attractive asset to own in one's portfolio. While near-term price movements are hard to predict, there is a chance that Bitcoin will reach $100,000 in a short period of time. However, investors should only buy this asset if they believe in its long-term potential, with the intention of holding it for the next decade. With that time horizon in mind, the price could eventually be much higher than $100,000. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy . Can Bitcoin Reach $100,000? was originally published by The Motley Fool
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1,705,920,642 |
2024-01-22 10:50:42+00:00
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{"Bitcoin": [4139]}
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{}
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Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout
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https://finance.yahoo.com/news/morgan-stanley-jpmorgan-buy-dip-015106576.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Two major Wall Street firms are recommending investors start buying five-year US notes after they saw their worst rout since May last week. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Morgan Stanley sees scope for a rebound in Treasuries on expectations data in the coming weeks may surprise to the downside. JPMorgan Chase & Co. is suggesting investors buy five-year notes as yields have already climbed to levels last seen in December, though it warned that markets are still too aggressive in pricing for an early start to central bank interest-rate cuts. “This is ‘the dip’ we have been looking to buy,” analysts including Matthew Hornbach, global head of macro strategy at Morgan Stanley, wrote in a note dated Jan. 20. “With less fiscal support and much colder weather, we see downside risks to US activity data delivered in February.” Five-year US yields climbed 22 basis points last week, the most since the period to May 19, as traders slashed bets on interest-rate cuts from the Federal Reserve this year. Sustained pushback from central bank officials, along with healthy data on retail sales, sent the odds of a March reduction tumbling to nearly 40% on Friday. The market is now expecting five quarter-point cuts from the Fed this year, after looking for six-to-seven reductions on Jan. 12. Treasuries inched higher at the longer-end of the curve on Monday, while the front-end crept lower, sending two-year yields up one basis point to 4.40% and five-year yields down one basis point to 4.04%. Read more: Bad Week for Bonds Worsens With Yields Reaching Year’s Highs One Japanese investor argued that it’s better to remain cautious on bonds given the potential the Fed leaves rates unchanged this quarter. There could be “concern growing among investors that the Fed may not pivot at all or they have bought too many bonds,” said Hideo Shimomura, a senior portfolio manager at Fivestar Asset Management Co. in Tokyo. Story continues “Don’t be the last guest at the bond party. Once the party is over, leave the room quickly,” he said. The next set of auctions of Treasury debt, including two-, five- and seven-year notes, are slated to begin on Tuesday, setting the stage for upward pressure on yields for those segments of the market. The bond market also faces risks with the first reading of US fourth-quarter gross domestic product on Thursday, expected to mark the strongest back-to-back quarters of growth since 2021. The Fed’s preferred gauge of underlying inflation is due Friday and is forecast to show an 11th straight month of waning annual price growth. The data may end up reinforcing the potential that the Fed achieves its avowed aim of a soft landing. While that should allow policymakers to deliver interest-rate cuts this year, Treasuries have been whipsawed by the potential that an easing cycle will start later and proceed more slowly than previously expected. “There seems to be little pressure to start cutting rates imminently,” said Benjamin Schroeder, a senior rates strategist at ING Groep NV, forecasting 10-year Treasury yields to rise back up to 4.25%. “This week’s supply and the upcoming quarterly refunding could put the term premium back into focus.” Read more: A $2 Trillion Pile of Debt Poses Threat to Bond Rally JPMorgan expects the first Fed cut to come in June, rather than the May move, which is now fully priced in by swaps contracts. Morgan Stanley sees central banks in both the US and Europe to be in focus in mid-March and forecasts markets pricing in at least one rate cut by northern hemisphere spring for most central banks. --With assistance from Masaki Kondo and Alice Atkins. (Updates yield levels in fifth paragraph, adds comment from ING’s Schroeder.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,921,022 |
2024-01-22 10:57:02+00:00
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{"Bitcoin": [8743]}
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{}
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Adani’s Lessons From Hindenburg Hit Fuel $93 Billion Rebound
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https://finance.yahoo.com/news/adani-lessons-hindenburg-fight-fuel-233000795.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- One of the biggest ever corporate takedowns by a short-seller may have been a blessing in disguise for billionaire Gautam Adani. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks A year after US-based short-seller Hindenburg Research accused the Adani Group of fraud and “brazen” stock price manipulation in a bombshell report — allegations the conglomerate denies — the Indian tycoon has emerged stronger on some measures of business fundamentals. His ports-to-power empire has trimmed debt, pared founders’ share pledges, won new backers from the US to the Middle East, bagged landmark projects and begun to communicate more often with investors and lenders. It’s helping ferry a rising number of air passengers and cargo containers. It’s also building a new airport for India’s financial capital, Mumbai, and redeveloping the city’s sprawling Dharavi slum. Fallout from Hindenburg’s report still lingers. While Adani stocks have risen more than $90 billion from last year’s low, they remain about $60 billion short of their pre-Hindenburg peak. Meanwhile, most of the group’s dollar bonds have recouped their losses. Critics including opposition political parties have continued to raise questions about a perceived closeness to Prime Minister Narendra Modi, as well as a complex web of opaque offshore firms. The auditor for the group’s ports business resigned last year, adding to questions around its accounting practices. Adani Group representatives didn’t respond to requests for comment. The conglomerate has said it complies with all laws and follows all accounting rules, while the billionaire has said that his firms don’t receive preferential treatment from the government. Despite such issues, many investors now believe that the Adani empire is once again on an ascent. A Supreme Court verdict rejecting appeals for a special investigation, new marquee investors and the US agency funding “have all given greater comfort to both institutional and retail investors,” said Chakri Lokapriya, managing director of RedStrawBerry LLP, a Chennai-based asset management company. The year after the short-seller broadside “has proved to be a blessing for the Adani Group,” Lokapriya said. Much of the conglomerate’s resilience comes from its sprawling infrastructure empire — port terminals, power lines, airports, data centers, solar parks and cement plants. That has put Adani in the center of an India boom that investors are keen to tap into. The South Asian nation is emerging as a rare growth story in a flat-lining global economy hungry for China-alternatives. Story continues Below is a selection of business metrics on Adani’s empire since the short-seller’s broadside on Jan. 24 last year: Unencumbered and Rallying Hindenburg’s report sent Adani stocks into a tailspin, eroding tens of billions in market value and leaving the founders vulnerable to margin calls on their pledged shares. Adani and his family prepaid $2.15 billion and have drastically reduced their pledged holdings. The group also lured in almost $5 billion in investments, the bulk of it from star investor Rajiv Jain’s GQG Partners LLC which cut against the grain to buy stakes in four Adani firms in March and has plowed in more money since then. The combined market value of 10 listed Adani companies is now at about $175 billion — a jump of around 112% from the record low of $82 billion in February last year after the short-seller report. Five of them have erased all the losses seen after Hindenburg’s report. The latest upswing in the stocks is being driven by the Indian Supreme Court’s verdict rejecting appeals for a federal probe or special investigation into Adani’s businesses, and a $553-million investment by a US-backed agency in the group’s port business in Sri Lanka. “The silver lining of the Hindenburg report was that investors, who were unable to get entry into Adani shares at a good price, got the opportunity to own these stocks,” said Alok Churiwala, managing director at Churiwala Securities Pvt in Mumbai. Adani Group, however, still needs to bolster analyst coverage. It’s scant for most of its firms except the ports business and the newly acquired cement makers. The conglomerate would also benefit from expanding its public float to ward off outsized stock swings. Credit Markets The conglomerate’s net debt fell 3.5% to $21.72 billion in the six months through September, according to a presentation filed to exchanges. It’s net debt-to-Ebitda ratio decreased to 2.5 in September compared to 3.3 in March. This ratio was at 3.9 for the group it said in August 2022 — the pre-Hindenburg phase that was characterized by frenzied expansion. As of Jan. 19, 13 of Adani Group’s 15 dollar denominated bonds were above 80 cents on the dollar — a level generally considered as the cut-off for a bond being distressed. The vast majority were trading higher than their levels touched last year after the report, according to data compiled by Bloomberg. The group also managed to refinance $3.5 billion debt in October, displaying growing confidence among creditors. Building, Powering India Adani, who rose from being a diamond trader in Mumbai in the 1980s, rebounded from the short-seller crisis in good measure because he’s building or operating some of the biggest infrastructure projects in India. “If you take out the Adani label, the ‘port to power’ business itself is a decent way to express your view on India and you can’t really find fault with the India growth story,” said Xuchen Zhang, emerging markets credit analyst at Jupiter Asset Management in London. Data compiled by Bloomberg show Adani handles almost half of all shipping containers in India, a third of all coal transported, and about one-fifth of private thermal power capacity. The infrastructure investment boom is in the “early stages” in India and “Adani has a lot of fuel in the tank,” GQG’s Jain told Bloomberg TV earlier this month. The tycoon also aligns his business strategies to Modi’s nation-building priorities. “The government stands behind the company and it serves important functions in key areas of the economy,” said Sabrina Jacobs, London-based client portfolio manager for fixed income at Pictet Asset Management. That also points to another possible fault line for the conglomerate — the political risk for Adani whose rise has been almost parallel to Modi’s ascent to power. India will hold national elections this year in which Modi will be making a strong claim to return for his third term as the Prime Minister. A December 2023 poll by ABP News-CVoter said that the BJP-led National Democratic Alliance would return to power comfortably this summer. Read More: Adani Contractor Probed by India Resurfaces Under a New Name One of the biggest continuing overhangs is the local market regulator’s probe into the Adani Group on whether it violated securities laws. India’s top court asked the regulator on Jan. 3 to conclude its investigation within three months. New Believers While Adani Enterprises Ltd.’s scrapped $2.5 billion share sale — a big casualty of the Hindenburg report — failed to expand the investor base, the group has benefited from new marquee backers. GQG’s Jain is so bullish that he wants to be “one of the largest investors in Adani Group” after the founders in five years. Past investors Qatar Investment Authority, TotalEnergies SE and Abu Dhabi-based International Holding Co. have doubled down in the past few months. The Adani family is also making changes. The family is setting up a Special Purpose Vehicle in Abu Dhabi’s international financial center, joining dozens of other high net worth individuals who want to protect their wealth. In late February, Adani’s Dubai-based elder brother Vinod Adani, who Hindenburg alleged held a pivotal role in opaque offshore entities connected to the conglomerate, stepped down as director of three companies connected to the family’s controversial coal mine in Australia. Adani “keeps facing reputational challenges, but he shakes them off and keeps doing business,” said Michael Kugelman, director of the South Asia Institute at the Wilson Center in Washington. --With assistance from Ashutosh Joshi, Lou Del Bello, P R Sanjai, Chris Kay, Divya Patil, Alexander Sazonov, Chiranjivi Chakraborty and Harry Suhartono. (Updates with a credit analyst comment.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,921,200 |
2024-01-22 11:00:00+00:00
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{"Bitcoin": [3009]}
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{}
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Business Group Warns Trudeau Likely to Miss Canada’s Fiscal Goal
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https://finance.yahoo.com/news/business-group-warns-trudeau-likely-110000603.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- One of Canada’s largest business groups says Prime Minister Justin Trudeau’s government is unlikely to follow through on its latest pledge to control its budget shortfalls. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks In November, Finance Minister Chrystia Freeland added new fiscal objectives during the government’s update of the country’s finances, including a goal of keeping deficits below 1% of gross domestic product, starting in the 2026-27 fiscal year. Canada has a lower government debt burden than many other advanced economies, and the new targets play an important role in showing fiscal restraint, the government has argued. Bank of Canada Governor Tiff Macklem called the new guardrails “helpful” to monetary policy. But the government has systematically disregarded its past fiscal goals, raising doubts about its latest promise, according to a new report from the Business Council of Canada. “To meet their proposed deficit target they’ll either need much stronger-than-expected economic growth or they have make substantial program cuts ahead of an election,” said report author Robert Asselin, the council’s senior vice president of policy and a former adviser to Freeland’s predecessor, Bill Morneau. According to Asselin’s analysis, Canada’s federal deficits averaged 1.4% of the country’s total output between 2017 and 2022 when adjusted for swings in economic activity, such as the Covid pandemic shutdown. Since the Second World War, the country has only twice brought its budget shortfall to below 1% of GDP when its expenditures were above 17%. This year, federal spending represents 17.3% of GDP and projections have been “extremely unreliable” over the five-year forecast, Asselin wrote in the report. Story continues With an election expected by the fall of 2025, pressures to spend will mount. Uncertainty about the impact of higher debt service payments are another concern. Read More: IMF Urges Canada to Adopt Debt Anchor, Tighten Fiscal Policy During the pandemic, Freeland introduced a fiscal guardrail that linked federal spending to labor market conditions, but she abandoned it during the economy’s swift economic rebound, the report says. In 2022, the government said its fiscal policy decisions would be guided by the medium-term goal of having a declining debt-to-GDP ratio, but it rose between 2022 and 2023. “At some point people aren’t going to believe you and they’ll say your fiscal anchors aren’t credible,” Asselin said. “When you miss three targets in five years, at what point do markets say, this government isn’t doing what it said it would do?” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,921,200 |
2024-01-22 11:00:00+00:00
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{"Bitcoin": [5507]}
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{}
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Fund Pros Burned in AI Surge Are Giving Up on Active Management
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https://finance.yahoo.com/news/fund-pros-burned-ai-surge-110000528.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- The never-ending rise in technology megacaps is driving stock-picking pros to do something they don’t want to do: give up on beating the benchmark. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks With the likes of Microsoft Corp. and Nvidia Corp. all but owning 2023’s bull run, money managers faced a dilemma. So many stocks have been left in the dust that finding ones to beat the index is next to impossible — the hardest since 1987, by one measure. One remedy is to give up and let the S&P 500’s static allocations guide their own. That’s what they did, in droves. It’s illustrated by something called the active-share ratio, a gauge kept by Bank of America Corp. among others that tracks how holdings of active funds deviate from the S&P 500. Near the end of last year, the indicator hit the lowest level since 2013. Managers are mirroring the index more than any time in a decade. “Active managers typically justify their fees by producing alpha by security selection,” said Mark Freeman, chief investment officer at Socorro Asset Management LP. “But in a market where returns are being driven by just a handful of large-market-cap names, it becomes increasingly difficult to fulfill that mandate.” Propelled by the artificial-intelligence frenzy, the seven largest tech firms – also including Apple, Alphabet, Amazon.com, Meta Platforms and Tesla – have doubled on average in the past year. That’s four times as much as the S&P 500. With gains concentrating in a few names, the rest of the market languished. Only 27% of the S&P 500’s constituents were ahead of the benchmark last year, the narrowest market breadth in BofA’s data history since 1987. Story continues As a result of the wide divergence, the so-called Magnificent Seven saw their market share climb to unprecedented heights. At one point last year, their combined weight in the S&P 500 reached 29%, the most since at least 1980, data compiled by Goldman Sachs Group Inc. show. Predictably, the boom stirred up fear that a crowded trade risked a rapid unraveling. And to some degree that happened in 2022, when the cohort’s slump fueled a 25% bear-market plunge. At the same time, concentration alone rarely triggers a selloff. As long as profit growth justifies share appreciations and interest-rate backdrops favorable — as has been mostly the case in the past decade — there’s a dearth of statistical evidence to suggest the tech behemoths can’t keep expanding. Moreover, concentration in benchmark weighting has the potential to create optical illusions when it comes to fund positioning, specifically the appearance they’re overweight technology. Active managers could make no decision other than to mimic the S&P 500’s makeup and they’d still have more than a quarter of their portfolio in seven computer and internet stocks, for instance. It’s not owning enough of the big winners that has proved to be a larger problem for money managers. Last year, only 38% of large-cap funds beat their benchmark as an aversion to tech megacaps dragged down performance, according to an analysis by BofA. “Not holding stocks that are big return contributors to the benchmark carries tremendous underperformance risk when these stocks have positive momentum,” said Savita Subramanian, BofA’s head of US equity and quantitative strategy. “As filings are posted at the end of each period, funds may feel some pressure to show that they held the best companies over that period – particularly if the alpha from top stocks and the index is quite wide, as it was last year.” Going by her team’s data, active funds have been gravitating toward their benchmark since 2017, a period coinciding with tech’s largely unstoppable ascent. Over the stretch, their active share ratio slipped to 65%, down from a peak of almost 70%. The ratio always falls between 0% and 100%, with zero indicating a pure passive strategy while a higher reading suggests more active management. The active share ratio did perk up over a stretch when tech’s supremacy was briefly interrupted from late-2021 onwards. Software and internet shares have extended their leadership in the new year, bolstered by optimism that the Federal Reserve will soon embark on a monetary easing cycle as inflation cools, alleviating valuation pressure on richly valued stocks. To stand a chance of winning, stock pickers need big tech exposure. Not all of them can get it. Regulations dating back over 80 years set limits on how concentrated a “diversified” mutual fund can be. Under those rules, these funds must cap the number of individual securities that equal more than 5% of their assets, and such stakes can’t add up to more than 25% of their overall portfolios. “As market cap weighted indicies become more and more concentrated in a handful of names, it creates an inherent conflict for active managers who are not willing or able to have such concentrated positions,” said Freeman at Socorro. “In this environment active managers are just trying to keep up as best they can, which means taking index-like positions to the extent possible.” --With assistance from Justina Lee. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,921,732 |
2024-01-22 11:08:52+00:00
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{"Bitcoin": [2636]}
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{}
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Ivory Coast Tests Eurobond Market for Locked-Out African Nations
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https://finance.yahoo.com/news/ivory-coast-tests-eurobond-market-110852119.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Ivory Coast began the process of marketing a eurobond, testing a market that’s been closed to borrowers from Sub-Saharan Africa for nearly two years. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks The Western African nation mandated BNP Paribas SA, Citigroup Inc., Deutsche Bank AG, JPMorgan Chase & Co., Societe Generale SA and Standard Chartered Plc as joint lead managers to arrange a day of global marketing including an investor call on Monday, according to information from a person familiar with the matter, who asked not to be named because they’re not authorized to speak about it. Subject to market conditions, two bonds will go on sale, according to a preliminary outline of the offering: a sustainability bond with an 8-year weighted average life (9-year final maturity), and a conventional bond offering with an expected 12-year weighted average life (13-year final maturity). In addition, the world’s largest cocoa producer is also planning a tender offer for its outstanding 5.125% euro notes due 2025 and a $300 million capped tender offer of its outstanding step-up bonds due 2032. The tender offer is conditional on a successful closing of the new offering. Yields on the country’s eurobond due July 2024 fell 67 basis points to trade at 7.97% as of 10:50 a.m. in London. Nick Eisinger, co-head of emerging-market fixed-income active at Vanguard Asset Services, said the nation was one of the few African names able to issue under present conditions. Investors generally like the issuer due to a strong track record for reform and its ability to access a wide range of funding across commercial and concessional sources, he said. “It is also a dollar issue which is important for dedicated EM investors as it will come into the JP EMBI index and thus should generate better liquidity - we applaud the fact the authorities have decided to do a USD issue,” Eisinger said, referring to the popular JPMorgan bond indexes. Story continues Nations in Sub-Saharan Africa have been effectively locked out of international debt markets since the US Federal Reserve began raising interest rates aggressively in 2022 to fight inflation. The last country to borrow from the region was South Africa in April of that year. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,921,800 |
2024-01-22 11:10:00+00:00
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{"Bitcoin": [2358, 4379, 4443]}
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{}
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Can Shiba Inu Reach $0.01 in 2024?
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https://finance.yahoo.com/news/shiba-inu-reach-0-01-111000248.html
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Motley Fool
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http://www.fool.com/
|
Shiba Inu (CRYPTO: SHIB) has been a massive winner since its public launch in August 2020, as the meme token is up nearly 12,000,000% in the roughly three and a half years of its existence. This remarkable performance is despite Shiba Inu being down 89% from its all-time high. As of Jan. 16, this dog-themed cryptocurrency 's current price is $0.000009638. But its most bullish supporters might have their sights set on a much higher target in the not-too-distant future: Can Shiba Inu reach $0.01 by the end of 2024? Not standing out from the crowd While it was inspired by its predecessor Dogecoin , Shiba Inu's founders wanted this crypto to have more functionality, so they built it on top of the Ethereum network. This makes Shiba Inu compatible with a wide range of decentralized applications . The key aspect that Shiba Inu has that Dogecoin doesn't is the ability to run smart contracts . And in theory, this should have raised the former's utility. However, this just hasn't been the case. Developers, who are arguably the most important stakeholder when it comes to any blockchain network, aren't really focused on advancing Shiba Inu. According to a report from venture firm Electric Capital, Shiba Inu doesn't even make the list of top 100 cryptocurrencies in terms of developer activity. This doesn't bode well for its future to bring about real-world use cases. Some supporters are hoping that Shibarium, a Layer-2 scaling solution, can increase Shiba Inu's adoption. This upgrade is intended to lower transaction fees and boost throughput speeds. This all sounds great in theory, but I don't see a true competitive edge that Shiba Inu has among the tens of thousands of other digital assets out there. For example, investors are likely better off by just adding Ethereum, Solana , or Cardano to their portfolios, which have greater potential than Shiba Inu, if they want exposure to a cryptocurrency that has smart contract functionality. Story continues Missing the market's rally Probably the most compelling reason to invest in Shiba Inu is because it has a fanatical group of supporters. The token's price has skyrocketed in past periods due to various hype cycles when interest has soared. But there are signs that strong investor enthusiasm could be ending. Last year, which was a bounce-back one for the overall cryptocurrency market, Bitcoin skyrocketed 154%, with Ethereum surging 91%. Shiba Inu failed to rise along with other digital tokens, as its price was up by about 32% in 2023. Investors who are betting on a renewed sense of interest among the crypto community should probably be more realistic. How can one reasonably expect Shiba Inu to rise significantly in price if it can't even outperform the overall industry in a raging bull market? Temper expectations If Shiba Inu's price were to hit $0.01 by the end of this year, that would translate to a ridiculous return of more than 10,000,000% in less than 12 months. This would certainly outpace any other financial asset out there, and it would make some bold investors extremely rich in short order. It's best to temper expectations, though. At one penny per token, Shiba Inu's market cap would equal just under $5.9 trillion (based on the current token supply). This is more valuable than some of the most dominant companies in the world, including Microsoft , Apple , and Tesla . I don't think someone can argue with a straight face that Shiba Inu, which might have no real reason to exist in the first place, can be worth more than these massive businesses. Not only is it unlikely that Shiba Inu reaches $0.01 in 2024, I suspect that it will never hit this mark. Should you invest $1,000 in Shiba Inu right now? Before you buy stock in Shiba Inu, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Shiba Inu wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, Cardano, Ethereum, Microsoft, Solana, and Tesla. The Motley Fool has a disclosure policy . Can Shiba Inu Reach $0.01 in 2024? was originally published by The Motley Fool
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1,705,923,840 |
2024-01-22 11:44:00+00:00
|
{"Bitcoin": [55, 377, 412, 1031, 1113, 1213, 1339, 1583, 1826, 2014, 2167, 2290, 2440, 2498, 2612, 2749, 2832, 2932, 2994, 3205, 3348, 3445, 3542, 3579, 3640, 3732, 3753, 3788, 3852, 3881, 3979, 4208, 4949, 5006, 5091], "BTC": [72]}
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{"Bitcoin": [14]}
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Missed Out on Bitcoin Mining Stocks? 2 Crypto Stocks to Buy Right Now
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https://finance.yahoo.com/news/missed-bitcoin-mining-stocks-2-114400223.html
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Motley Fool
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http://www.fool.com/
|
One of the easiest investment plays of 2023 was buying Bitcoin (CRYPTO: BTC) mining stocks. All they seemed to do was go up, with popular mining stocks like Marathon Digital Holdings (NASDAQ: MARA) , Riot Platforms (NASDAQ: RIOT) , and CleanSpark (NASDAQ: CLSK) all up more than 400% by the end of 2023. But it could be an entirely different story in 2024. Due to the upcoming Bitcoin halving, only a handful of Bitcoin mining companies are likely to be profitable for the year, and that could lead to a massive shakeout in the industry. So, with that in mind, here are two crypto stocks to buy instead. Coinbase Global First up is Coinbase Global (NASDAQ: COIN) , which continues to be a favorite of crypto investors. Cathie Wood of Ark Invest was consistently bullish on Coinbase throughout 2023 -- and for good reason. Coinbase remains the second-largest cryptocurrency exchange in the world, with a business model that is easy to understand for investors. Coinbase also remains one of the best indirect ways to get exposure to Bitcoin. Among publicly traded companies, Coinbase is the sixth-largest holder of Bitcoin in the world, with 9,181 bitcoins worth nearly $400 million on its balance sheet. Moreover, Bitcoin accounts for approximately one-third of all trading on the Coinbase platform. Generally speaking, upward momentum for Bitcoin also results in higher trading volume for other cryptos as well, so Coinbase could get a nice overall boost if investors return to the crypto market in 2024. Image source: Getty Images. The big question, of course, is what the new spot Bitcoin exchange-traded funds (ETFs) mean for the future of Coinbase. At year end, Ark Invest was selling off Coinbase stock, and some took that as a signal that it was time to get out of Coinbase. After all, if people were going to be buying Bitcoin indirectly via ETFs instead of directly via a crypto exchange, that would likely mean a direct hit to Coinbase's bottom line. But if you take a closer look at the structure of the Bitcoin ETFs, Coinbase is designated as a custodian for 8 out of 11 of them. In other words, Coinbase is going to be holding onto a lot of Wall Street's Bitcoin in its digital vaults. In a best-case scenario, new custodial and service fees will help to patch over any loss in Bitcoin trading volume on its platform. Story continues MicroStrategy Next up is MicroStrategy (NASDAQ: MSTR) , which continues to be the single-best Bitcoin proxy stock. If you take a quick look at how much Bitcoin that MicroStrategy is holding on its balance sheet, it's easy to see why. MicroStrategy now holds 189,150 Bitcoins worth nearly $8 billion at today's prices. For those of you keeping score at home, that's approximately 1% of the world's total Bitcoin supply. As in the case of Coinbase, there's some debate about what the new Bitcoin ETFs will mean for MicroStrategy. Presumably, the company will lose some of its allure as a Bitcoin proxy stock. In just the first 48 hours after the new Bitcoin ETFs went live, the stock lost 20% of its value. However, some of that appears to be an overreaction by the market. Investment giant Vanguard Group, for example, has said that it won't be making the new Bitcoin ETFs available for its client base. Instead, it will be investing heavily in MicroStrategy as a more efficient way to gain exposure to Bitcoin. That might sound counterintuitive at first until you consider that MicroStrategy's vast Bitcoin holdings are worth more than the company itself! What is the best way to get exposure to Bitcoin? Now is the time to get your Bitcoin exposure right, especially with the narrative around Bitcoin shifting. With that in mind, there are a variety of different ways to get access to Bitcoin. You can buy Bitcoin mining stocks. You can buy Bitcoin proxy stocks such as MicroStrategy. You can buy the new Bitcoin ETFs. Or you can buy Bitcoin directly via Coinbase. Looking ahead, the next big catalyst to keep an eye on will be the Bitcoin halving, scheduled for April. Between now and then could be a fantastic opportunity to find crypto stocks such as Coinbase and MicroStrategy that are most likely to benefit from any long-term appreciation in the price of Bitcoin. Should you invest $1,000 in Coinbase Global right now? Before you buy stock in Coinbase Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Coinbase Global wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 16, 2024 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy . Missed Out on Bitcoin Mining Stocks? 2 Crypto Stocks to Buy Right Now was originally published by The Motley Fool
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1,705,924,372 |
2024-01-22 11:52:52+00:00
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{"Bitcoin": [4294]}
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{}
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Harvest Fund Seeks Offshore Growth Amid China Rout
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https://finance.yahoo.com/news/harvest-fund-seeks-offshore-growth-014105581.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Harvest Fund Management Co., one of China’s largest mutual fund managers, is seeking to capture rising demand for cross-border investments as the local stock market struggles with prolonged declines and Chinese investors chase offshore assets with higher returns. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks The company has almost depleted its $4.2 billion of quotas under the Qualified Domestic Institutional Investor program that allows locals to invest abroad, and plans to work with partners that still have unused quotas and clients with offshore assets, according to Kevin Shu, chief marketing officer of Harvest Global Investments Ltd., the Hong Kong-based international arm. To better serve international clients, including those investing in China, HGI is “optimizing” staff to cut costs in Hong Kong. It plans to add new jobs as soon as the middle of this year, he said by phone without giving numbers. The firm is looking for senior professionals familiar with both domestic and foreign markets to join its investment and marketing teams, and aims to hire bilingual trainees to gradually expand, he said. Shu denied a Reuters report this month that HGI cut more than a third of its staff of about 40 in Hong Kong and planned to wind down retail funds in the city and Europe. Any speculation of retreating from Hong Kong is “groundless,” and the reported number of layoffs was inaccurate, he said, adding the job cuts were “normal personnel turnover.” The company has been “stepping up roadshows” to tap global investor demand for all of Harvest’s products, Shu said. China’s 27 trillion yuan ($3.8 trillion) mutual fund industry is struggling to bolster performance amid persistent market declines. The CSI 300 index is down 6% already in 2024, after declining for three straight years. Investors are flocking to other markets like Japan, forcing China Asset Management Co. to suspend trading in its Japan ETF after the price surged. Story continues “We’re going to strengthen our services and registered staff in Hong Kong, market our best China assets to foreign investors while channeling Chinese clients’ money offshore,” Shu said. Harvest Fund managed 545 billion yuan in non-money market funds as of Sept. 30, making it the sixth-largest mutual fund company in China. The firm has an office in New York, a representative said, adding that the company shut its London office last year. As part of the overseas push, Harvest Fund plans to appoint Han Tongli, a managing director, as chief executive officer of HGI, replacing Thomas Kwan, according to a person familiar with the matter. The company declined to comment. While many foreign investors have been shunning Chinese stocks in recent years, Shu said some are starting to look at Chinese assets again as valuations become attractive. A South Korean institution is coming for a due diligence meeting soon, and a “top-tier” Middle Eastern client plans to visit the company in Hong Kong next month, he said. “I hope this year will see a major turnaround” in the firm’s international business, Shu said. “We have strong confidence.” After working for Fidelity Investments Canada and a Canadian pension fund, Shu joined Harvest Fund in 2009. He’s helped lead the firm’s international business since 2012 and built foreign client assets to $12 billion. He moved to Hong Kong in 2019 as the company sought to boost overseas operations. Key foreign institutional clients have stayed with Harvest even as some trimmed investments amid the market volatility and geopolitical tensions, Shu said. Many of them have been telling him they still need China allocations for the long term and would increase holdings once the Chinese market recovers. “They just need some catalysts,” he said. (Adds details on growth plans in fifth paragraph. The company corrected an earlier version to say its London office closed last year) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,928,400 |
2024-01-22 13:00:00+00:00
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{"Bitcoin": [361]}
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{}
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First Mover Americas: Solana, Cardano Lead Losses as Market Starts Week in the Red
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https://finance.yahoo.com/news/first-mover-americas-solana-cardano-130000962.html
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CoinDesk
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https://www.coindesk.com
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This article originally appeared in First Mover , CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day . Latest Prices (CoinDesk) Top Stories The crypto market started the week in the red , with Solana's SOL and Cardano's ADA leading the losses, having dropped 5% in the last 24 hours. Bitcoin, the world's biggest cryptocurrency by market value, lost the $41,000 support level early Monday, as the CoinDesk 20, a liquid index of the highest traded tokens, slumped 2.86% in the past 24 hours. Traders expect prices to fall as low as $38,000 in the coming weeks, which could lead to more losses in other cryptocurrencies. Recent downward pressure on bitcoin has been attributed to sales stemming from Grayscale’s GBTC bitcoin exchange-traded fund (ETF), as per some analysts, including Bloomberg’s Eric Balchunas. However, other newly approved bitcoin ETFs are seeing net inflows. BlackRock’s IBIT and Fidelity’s FBTC ETFs crossed $1 billion last week, data tracked by CoinGlass shows, indicative of buying pressure. Meme coins Dogecoin [DOGE] and floki [FLOKI] rose as much as 12% before retreating , as an @xpayments profile on X (formerly Twitter) sent adoption hopes flying among crypto circles. There is speculation that advertisers could use DOGE for ads and other purposes on the social media site. Trading volumes for both tokens shot up 200% over the weekend, CoinGecko data shows, even as broader crypto volumes remained relatively lower amid little volatility. Elsewhere, futures tracking the tokens saw open interest rise to a cumulative $430 million from $200 million, indicative of rising bets. However, broader market downward pressure took hold during European morning hours, with both down over 5% on the day at the time of writing. Terraform Labs, developer of the failed stablecoin TerraUSD which collapsed in May 2022, has filed for bankruptcy . Documents filed in Delaware on Jan. 21 say that the firm has between $100 million to $500 million in assets and the same amount in liabilities. "The filing will allow TFL to execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and U.S. litigation" Terraform Labs said in a statement. Amongst the list of unsecured creditors are TQ Ventures, a U.S.-based digital assets investment fund, and Standard Crypto, a San Francisco-based venture fund. Story continues Chart of The Day (Coinbase, Coinmetrics, Bloomberg) The chart shows the basis between bitcoin and ether CME futures and the spot prices of the two cryptocurrencies. The premium in bitcoin futures has narrowed to less than 0.5%, down significantly from the year-to-date high of over 4% seen before the debut of 11 spot ETFs in the U.S. on Jan. 11. Ether futures seem to be following bitcoin's lead. Traders may have sold futures while simultaneously buying cryptocurrencies early this month to pocket the elevated premium. That, coupled with a leverage shakeout after ETFs' debut, likely pushed the premium lower. Source: Coinbase, Coinmetrics, Bloomberg - Omkar Godbole Trending Posts Why Indonesia’s Upcoming Elections Could Make or Break the Country’s Vibrant Crypto Sector He Exposed Harvard President's Plagiarism, Then Lost Money Betting on the Story Crypto Backers B. Riley and Nomura Entangled in SEC Probe: Bloomberg
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1,705,928,400 |
2024-01-22 13:00:00+00:00
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{"Bitcoin": [2530, 3069, 5268]}
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{}
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2 Cathie Wood Growth Stocks to Buy and Hold for the Long Haul
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https://finance.yahoo.com/news/2-cathie-wood-growth-stocks-130000531.html
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Motley Fool
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http://www.fool.com/
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Cathie Wood leads Ark Invest, an investment management firm that rose to prominence in the early days of the pandemic. Although the subsequent years were a bit harsher, Wood bounced back in 2023 -- along with much of the market. Ups and downs aside, Wood's exchange-traded funds (ETFs) are home to some excellent growth stocks that investors can safely hold through thick and thin. Let's look at two examples: Exact Sciences (NASDAQ: EXAS) and Block (NYSE: SQ) . 1. Exact Sciences Exact Sciences specializes in developing cancer diagnostic tests. The company's best-known product and biggest cash cow is Cologuard, an at-home colorectal cancer diagnostic kit. Exact Sciences has several other products, including its Oncotype Dx kit that helps predict the probability of recurrence in breast cancer patients and guides physicians in choosing the best treatment options. Still, Cologuard is Exact Sciences' most important product, and though it has been on the market since 2014, there remains plenty of upside potential. Colorectal cancer is the second leading cause of cancer death in the U.S., even though it is highly treatable when caught early enough. That's a clear sign that not enough eligible people are being screened. Exact Sciences estimates a market of 60 million unscreened people in the U.S. between the ages of 45 and 85. The company thinks it can reach the 30 million people mark by 2027, up from 10 million in 2022 and 1 million in 2018. Exact Sciences is also developing a second version of Cologuard that will help accomplish at least two goals. Cologuard 2.0's higher specificity (true negatives) and sensitivity (true positives) should help convert some physicians who have, thus far, been on the fence about the test. The next-gen Cologuard will also be at least 5% cheaper to manufacture, saving Exact Sciences plenty of money. Exact Sciences is also developing newer products, including a multicancer testing kit. Last year's financial results were pretty strong for Exact Sciences. The company's third-quarter revenue of $628.3 million increased by 20% year over year, while its earnings per share broke even, compared to a net loss per share of $0.84 in the year-ago period. Story continues With Cologuard's ongoing momentum and newer products on the horizon, Exact Sciences' financial results and stock market performances should remain strong. 2. Block It hasn't been smooth sailing for Block over the past 18 months. The fintech specialist dealt with a short-seller report and seesawing revenue from Bitcoin trading. However, the short-seller report Block was hit with is now mostly a distant memory, while the company's crypto-related revenue rebounded. More importantly, Block's core ecosystems are still performing well. The company offers businesses a range of services -- including payroll, inventory, and point-of-sales systems -- through Square, while it targets consumers with traditional banking services through Cash App. The peer-to-peer payment app offers a debit card, tax preparation services, direct deposits, and stock and Bitcoin trading. In the third quarter of 2023, Block's gross profit jumped by 21% year over year to $1.90 billion, with both Square and Cash App seeing strong increases in gross profit year over year. Cash App, in particular, looks unstoppable. It ended the period with 55 million monthly transacting active customers -- an increase of 11% year over year -- with Cash App Card and Cash App Pay reaching 22 million and 2 million monthly users, respectively. Cash App Pay was first introduced in September 2021 and expanded to handle payment outside the company's ecosystem one year later. According to Block, Cash App Pay doubled its number of users from June to September 2023. Even within the company's already existing users, there is still plenty of room left for growth. It can convince more of its transacting customers to use Cash App Pay and Cash App Card, which often happens after people start using the app for other purposes. The same dynamic operates within Square, where businesses first come seeking to use the company's sleek POS systems but end up signing up for more overtime. Furthermore, Cash App and Square arguably benefit from competitive edges. The former carries high switching costs, while the latter benefits from the network effect . That, coupled with the long runway for growth available in the fintech industry, should allow Block to deliver strong results over the long run. Should you invest $1,000 in Exact Sciences right now? Before you buy stock in Exact Sciences, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Exact Sciences wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of the S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 8, 2024 Prosper Junior Bakiny has positions in Block. The Motley Fool has positions in and recommends Bitcoin and Block. The Motley Fool recommends Exact Sciences. The Motley Fool has a disclosure policy . 2 Cathie Wood Growth Stocks to Buy and Hold for the Long Haul was originally published by The Motley Fool
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1,705,929,967 |
2024-01-22 13:26:07+00:00
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{"Bitcoin": [4046]}
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{}
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Hurricane-Force Winds Unleash Chaos Across Northern Europe
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https://finance.yahoo.com/news/hurricane-force-winds-cause-chaos-073714810.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Storm Isha is disrupting travel and causing power blackouts across northern Europe, as hurricane-force winds lash the UK and other parts of the region. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks The Met Office’s yellow weather warning for the UK was set to end at midday on Monday, after overnight wind gusts of as strong as 99 miles (159 kilometers) per hour. Northern France and the Netherlands also face alerts, while flood and avalanche warnings were in place for the west coast of Norway. This morning, about 235,000 homes, farms and businesses in Ireland were without power, with Mayo, Galway, Roscommon and Kerry among the worst impacted counties. More than 300,000 customers have been reconnected in the UK, leaving about 70,000 still without power. Isha — the ninth named storm to hit the UK this season — will be swiftly followed by Jocelyn, bringing strong winds and heavy rain on Tuesday and Wednesday. Global warming is not only increasing the intensity of heat waves — with 2023 the hottest year on record — but also hurricanes and typhoons as warmer water and moister air provide additional fuel for storms. The extreme weather in Europe follows a deep freeze in the US, which tested power grids and disrupted travel with snow and icy conditions. The freezing temperatures also knocked out millions of barrels of US oil production, limited some refining capacity on the Gulf Coast and hindered natural gas flows. In Amsterdam, Schipol airport canceled about 130 flights on Monday and warned of delays as wind gusts reach more than 100 kilometers per hour. Power was restored this morning to most of the 68,000 customers cut off by an outage in the Dutch capital, which also halted trams. Story continues Flights were also delayed or canceled across the UK and Ireland, with severe disruptions to rail services in Scotland. Oslo’s public transport operator is advising against all but essential travel due to rain and icy roads. All departures on the rail line between the capital and the west coast city of Bergen have been halted. Huge waves in the North Sea are delaying helicopters flights to offshore oil and gas platforms. Read More: Chaos Grips UK Airports as Storm Strands Travelers Across Europe While cutting off power to thousands of homes, Storm Isha also depressed energy prices across the region as wind generation soared. Benchmark European gas futures fell as much as 6.4% on Monday to the lowest since July. In the UK, wind power made up about half of the nation’s energy mix, according to data from National Grid Plc. Intraday power prices in Germany fell below zero for several hours on Monday morning, dropping as low as -€14.88 a megawatt-hour on Epex Spot SE. Power prices turn negative when supply outstrips demand. Power Record Production from thousands of turbines in Germany reached as high as 48,146 megawatts on Monday, according to data from the European Energy Exchange AG. That compared with the record of 53,022 megawatts reached just before Christmas. Nordic wind power output surged to a record 25,723 megawatts. Orange and yellow weather warnings were issued by Sweden’s national forecaster SMHI for strong winds and heavy rain. Storm Isha heralds a period of much warmer weather across the region. London will reach 13.5C on Tuesday, while Paris will climb to 14C on Wednesday, according to Maxar Technologies Inc. The western Mediterranean will be even warmer, with Madrid hitting 18.5C on Friday. --With assistance from Rachel Morison, April Roach, Thomas Hall, Sarah Jacob, Eamon Akil Farhat, Stephen Treloar and Sophie Caronello. (Updates with storm Jocelyn in fourth paragraph) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,930,136 |
2024-01-22 13:28:56+00:00
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{"Bitcoin": [2908]}
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{}
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World’s First Green Steel Plant Raises $4.6 Billion in Debt
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https://finance.yahoo.com/news/world-first-green-steel-plant-132856074.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Swedish startup H2 Green Steel AB secured its biggest ever financing package as it proceeds with the world’s first large-scale green steel plant in northern Sweden. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks The firm signed agreements for a further €4.2 billion ($4.6 billion) in debt financing while also taking its total equity raising to €2.1 billion for the plant slated to come online early 2026, Chief Executive Officer Henrik Henriksson said at a press conference in Stockholm. H2GS is among a new breed of steelmakers seeking to overhaul the way the alloy is manufactured in one of the most polluting industries in the world. The sector, which has relied largely on the same production techniques for more than a century, accounts for about 7% of global carbon emissions. Among the company’s backers is investment firm Vargas Holding AB, which is also the founder of Northvolt AB, the Swedish battery maker that recently secured a $5 billion green loan to expand production at its factory in northern Sweden. Other backers of H2GS include include Kinnevik AB and Spotify Technology SA founder Daniel Ek. Read More: What It Would Take to Make Steelmaking Greener: QuickTake The Stockholm-based steelmaker said it had signed agreements for €3.5 billion in senior debt and up to €600 million via a junior debt facility, according to a statement on Monday. The group of more than 20 lenders included Svensk Exportkredit, the European Investment Bank, together with commercial banks led by BNP Paribas SA, ING Groep NV, KfW IPEX-Bank Gmbh, Societe Generale SA and UniCredit SpA. The latest funding spree was partly in response to a higher budget for the whole project that included additional infrastructure, according to the CEO. Speaking in an interview shortly after the press conference, Henriksson said, “It’s a sign of strength that we can raise this amount.” Story continues On the equity side, the latest round saw H2 Green Steel raise an additional €300 million with new shareholders including the Microsoft Climate Innovation Fund, Mubea and Siemens Financial Services. US investment bank Morgan Stanley acted as an equity adviser to the company. Henriksson though wouldn’t comment on any firm plans to list the company on the stock market, saying it’s a matter for the board. “We haven’t set a date for that yet,” he said. --With assistance from Alastair Reed. (Updates with IPO comments from CEO; previous versions of this story corrected the currency reference in the headline.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,930,681 |
2024-01-22 13:38:01+00:00
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{"Bitcoin": [2904, 3160, 4228]}
|
{}
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Wall Street’s ‘Foolish’ 2024 Trade Is Betting on Early Fed Rate Cuts
|
https://finance.yahoo.com/news/wall-street-foolish-2024-trade-010019888.html
|
Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- The latest warning for investors unleashing dovish monetary wagers across the board: Two thirds of Bloomberg Markets Live Pulse respondents said that betting on early monetary easing is the “most foolish” among popular trades heading into 2024. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Sony Sends Termination Letter to Zee Over India Merger Even as the S&P 500 closed Friday at an all-time high, money managers and analysts are contending with data that signals US economic resilience and Federal Reserve officials who’ve pushed back against reducing interest rates too soon. The results are an indication of rising anxiety on Wall Street that the bulls — who’ve been emboldened by speculation surrounding a dovish Fed pivot — are going too far. Already, traders who ended 2023 with an optimistic forecast of six rate cuts for this year have pared down that wager to five. They’re also less certain that policymakers will kick off their monetary easing cycle in March, as was nearly priced in during the frenetic rally of late 2023. To Janet Mui, head of market analysis at RBC Brewin Dolphin, the re-acceleration of inflation in some major economies and resilience in US employment data result in an important challenge for the market’s interest-rate expectations. “The early start and number of rate hikes priced in was incompatible with the soft-landing view,” she said. San Francisco Fed President Mary Daly on Friday, meanwhile, said it’s “premature” to think rate reductions are around the corner, noting she needs to see more evidence that inflation is on a consistent trajectory back to 2% before easing policy. More than two thirds of the MLIV Pulse survey respondents said big gains for global stocks at the end of last year now look like a bad omen — and evidence that market participants became too optimistic too fast. Positioning and sentiment rapidly shifted from risk-off to risk-on at the end of 2023 as investors bid up everything from small-cap stocks to junk bonds on hopes of rate reductions. Story continues Now, after a mixed start to 2024, they are forced to decide between enjoying the good times or reigning in optimism before they get burned. One sign of that conundrum: Investors who responded to the survey are less bullish on stocks than they were in November, even as they still prefer them to bonds. Of course, a majority of those surveyed agreed that January is a poor indicator of what the rest of the year will bring. Less than a tenth of respondents allocate risk behind year-ahead trades in December or January, and about a third said year-ahead trades are stupid. One asset that doesn’t appear to have much momentum: Bitcoin. More than two thirds of respondents said they plan to keep their exposure unchanged over the next 12 months, even after the first US exchange-traded funds investing directly in the largest digital currency finally went live this month. Read more: Bitcoin ETFs Have Little Impact on Exposure: MLIV Pulse Results After a double-digit stock rally led by megacaps in 2023, investors are looking for cheaper deals. Going long on value stocks over their growth counterparts is the preferred wager for 44% of market participants. “The stock market is going to have a much tougher time maintaining today’s high valuation levels,” said Matt Maley, chief market strategist at Miller Tabak + Co. “Too many investors were equating the end of rate hikes and the beginning of rate cuts with a return to era of free money.” The MLIV Pulse survey is conducted weekly among Bloomberg readers on the terminal and online by Bloomberg’s Markets Live team, which also runs the MLIV blog. This week, the survey focuses on the housing market. Will the price of your house go up this year? Share your views. This story was produced with the assistance of Bloomberg Automation. (Updates with link to full survey results) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,930,905 |
2024-01-22 13:41:45+00:00
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{"Bitcoin": [6086]}
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{}
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Wall Street Banks Want to Lure Back Loan Deals Lost to Private Credit
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https://finance.yahoo.com/news/wall-street-banks-want-lure-110100485.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Investment banks including Goldman Sachs Group Inc., Citigroup Inc. and Barclays Plc are seeking to poach back leveraged finance deals that were snapped up by direct lenders when markets were more volatile, according to people with knowledge of the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Bankers in Europe and the US are speaking with buyout firms about private credit loans that were signed when credit spreads were blowing out and banks were preoccupied with hung debt on their balance sheets, the people said. Now that leveraged loan markets have calmed down — and interest rate cuts are on the horizon — they want to get some of the business back. Banks are actively pitching to refinance the €850 million ($924 million) unitranche that backed KKR & Co.’s buyout of French insurance broker April Group, as well as the €500 million unitranche backing EQT AB’s buyout of calibration services firm Trescal Ltd, people familiar with the matter told Bloomberg. Other deals potentially of interest to banks are those behind the buyouts of baker Irca SpA and Italian pharmaceutical company Neopharmed Gentili SpA, a separate person said. KKR, EQT, Irca owner Advent Group and Neopharmed owners Ardian and NB Renaissance declined to comment. How Private Credit Gives Banks a Run for Their Money: QuickTake Investment banks have an opening now because private credit unitranche loans typically allow companies to refinance around 12-18 months after a deal is first priced without a steep charge. At the same time, falling borrowing costs in the leveraged finance market means they may be able to offer cheaper deals than direct lenders, as well as more flexibility in the form of fewer covenants. Story continues Private equity firm Veritas Capital has already taken the plunge, and is seeking to refinance existing unitranche debt that it used for the buyout of Wood Mackenzie Ltd. with a $1.3 billion leveraged loan. Cheaper Debt As the syndicated market normalizes, some of the larger private credit deals that were done years ago “are likely to be refinanced with cheaper syndicated debt,” said Osvaldo Pereira, head of direct lending at Park Square Capital. Still, it’s “too simplistic” to assume that borrowers will choose syndicated loans simply because they are available again — “there are sponsors and borrowers who will continue to prefer a private credit solution,” he said. Banks are particularly targeting borrowers which priced debt between March and December 2022, when credit risk for European junk firms surged to the highest level since the coronavirus pandemic and direct lenders scooped up market share. They’re also targeting middle-market private credit borrowers that have since become large enough to succeed in syndicated markets. Spokespeople for Goldman and Barclays declined to comment. Citi didn’t respond to a request for comment. For borrowers, refinancing with investment banks may make sense. While private credit offered the certainty of getting a transaction done in the tumultuous market of 2022, many of those deals now look expensive. Refinancing in the syndicated market is now 75 basis points cheaper than the unitranche alternative, while financing for new M&A is 100 basis points cheaper, according to bankers. Still, it’s unclear how much business banks will be able to win back. The incumbent direct lenders also have the right to pitch a repricing to the borrower, and may offer lower rates, higher leverage or undrawn acquisition lines to keep hold of a deal. Sweeter Terms In the US, private lenders led by Blackstone Inc. recently sweetened terms on Guidehouse Inc.’s existing debt in order to dissuade new owner Bain Capital Private Equity from refinancing with banks. The direct lenders cut their rate to 5.5 percentage points over the Secured Overnight Financing Rate from 6.25 percentage points, bringing the facility closer to what banks were offering. More generally, private credit firms have been slashing their pricing to win deals. Direct lenders including Apollo Global Management and Goldman Sachs Asset Management offered pricing of 575 basis points over the Euribor benchmark to finance the buyout of classifieds company Adevinta ASA — a big step down from the rates direct lenders used to charge. There are other speed bumps. The European Central Bank’s guidelines indicate that banks should generally limit leverage on deals to six times, while direct lenders remain largely unregulated and can push leverage to more aggressive levels. Some borrowers may also be dissuaded by the expense of getting an official rating from a credit-rating agency — something that direct lenders don’t require. And there are also geographical nuances. Direct lending deals done in sterling may be harder to refinance with banks, given the lack of liquidity in that currency in syndicated markets. And refinancing deals backing Italian companies would require banks to issue floating-rate notes because of strict regulations around leveraged loans in the country. Another complicating factor is that many banks including Morgan Stanley and HSBC are building out direct lending operations of their own — meaning that in some cases their leveraged lending desks and private credit arms may be competing against each other for deals. “Banks have started to win back some deals and pull back market share from the direct lenders,” said Jeremy Duffy, partner and head of EMEA bank lending team at White & Case. Still, “I’m not sure that at this stage bank refinancings and some new money deals alone are keeping direct lenders awake at night,” he said. --With assistance from Silas Brown. (Updates with deal in paragraph 6.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,931,742 |
2024-01-22 13:55:42+00:00
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{"Bitcoin": [2948]}
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{}
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Gilead Sinks After Lung Cancer Drug Fails to Improve Survival
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https://finance.yahoo.com/news/gilead-sinks-lung-cancer-drug-135542957.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Gilead Sciences Inc.’s Trodelvy failed to significantly improve survival in a trial of patients with advanced lung cancer, a blow to the targeted treatment that’s in one of the most promising classes in oncology. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Patients getting Trodelvy didn’t live significantly longer than those getting chemotherapy alone, the Foster City, California-based company said Monday in a statement. Gilead said it plans to discuss the results with regulators and will work to identify whether there are certain lung cancer patients who may still benefit from the drug. The stock fell as much as 11% in early New York trading. It was down 8.4% at 8:48 a.m., which would be its biggest drop since April 2020. Shares of rival AstraZeneca Plc spiked higher on the news, up as much as 3.8% in London for its biggest gain in two months. Already approved to treat some types of breast cancer and bladder cancer, Trodelvy is an antibody-drug conjugate, a medication that directly delivers strong tumor-killing doses while minimizing damage to surrounding tissues. Excitement about ADCs runs high, with big drugmakers making deals to acquire them. But another ADC similar to Trodelvy being developed by AstraZeneca and Daiichi Sankyo Co. fell short of expectations last year in lung and breast cancer patients. Gilead’s trial included 603 patients with advanced non-small cell lung cancer who didn’t respond to other treatments like chemotherapy or checkpoint inhibitors. There was a numerical improvement in overall survival among patients with common subtypes of non-small cell lung cancer who got Trodelvy, the company said. The drug’s safety profile was consistent with prior studies. Story continues There was a difference of more than three months in overall survival in favor of Trodelvy in a sub-group of patients who hadn’t responded to prior immunotherapy, which Gilead plans to study. The drugmaker will present data from the study at an upcoming medical meeting. “The need for effective treatments remains urgent,” Chief Medical Officer Merdad Parsey said in the statement. Deals for makers of ADCs and their drugs include Johnson & Johnson’s agreement to pay $2 billion for Ambrx Biopharma Inc., AbbVie Inc.’s $10.1 billion deal for ImmunoGen Inc. and Merck & Co.’s agreement to pay as much as $22 billion for the rights to sell three experimental ADCs from Daiichi Sankyo. This story was produced with the assistance of Bloomberg Automation (Updates with AstraZeneca’s stock reaction in third paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,932,383 |
2024-01-22 14:06:23+00:00
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{"Bitcoin": [2294]}
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{}
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Too High or Too Low? Wall Street Split on Profit Margin Outlook
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https://finance.yahoo.com/news/too-high-too-low-wall-140623505.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Strategists at Wall Street’s two top-tier banks are split on the outlook for profit margins: Goldman Sachs Group Inc. sees falling inflation boosting the key metric, while JPMorgan Chase & Co. warned companies are quickly losing pricing power. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Goldman’s David Kostin said the S&P 500 will rise slightly in 2024 as companies benefit from faster cooling in raw material and labor costs. “Concerns about recession and Fed tightening are abating, and profitability for the broader index should continue to improve,” he added. JPMorgan’s Mislav Matejka takes the opposite stance. He has warned that semiconductor stocks, whose profit margins are already at record highs, will suffer this year under a feeble economy. The difference between the two strategists highlights the difficulty facing investors trying to decipher mixed economic signals and uncertainty over the timing of interest rate cuts. The picture may become more clear in the coming weeks as more companies release quarterly results, with Netflix Inc., Tesla Inc. and Intel Corp. due to report this week. In Kostin’s view, easing inflation will benefit firms that have weaker pricing power, helping those stocks outperform this year. The bank highlighted a trading strategy based around the idea and a basket of companies including Tesla, Advanced Micro Devices Inc. and Thermo Fisher Scientific Inc. So far, companies have given a mixed picture of their profit margins. Lululemon Athletica Inc. raised its profit margin forecast, while JD Sports Fashion Plc said margins will be smaller due to special offers and promotions. In a report, Matejka wrote that profit margins look stretched for cyclical sectors like financials and consumer discretionary. “As the positive impact from Covid distortions gets priced out, earnings and margins could suffer,” he said. Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,932,409 |
2024-01-22 14:06:49+00:00
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{"Bitcoin": [3711]}
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{}
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Shift in Key Options Bet Suggests S&P 500 Can Rally Even Further
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https://finance.yahoo.com/news/shift-key-options-bet-suggests-101249962.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Options traders are betting on more gains in the S&P 500 Index after it hit a record high on Friday. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks A slew of bullish wagers shifted the yardstick of whats seen as the upper bound of the US benchmarks trading range. The so-called call wall has moved to 5,000 points from 4,800 signaling that traders see the market clearing the next hurdle toward further gains, according to SpotGamma data. That points to a further 3.3% of upside, based on Fridays close. While options traders turn more bullish, lower earnings expectations which makes upside surprises easier and a potential supportive message from the US Treasury are among catalysts that could see the wider market helping keep the equity rally going. Read more: Five Charts Showing the S&P 500s Wild Ride Back to Record Highs The shift in the options market structure is inviting a climb higher, said SpotGamma founder Brent Kochuba. The move was driven by a pattern of call buying, especially chasing index-heavyweights such as the Magnificent Seven group of tech megacaps that include Apple Inc. and Amazon.com Inc. Upward momentum has been building in stocks, as economic data remained resilient and helped the correction seen in the first few trading days of 2024 to be short-lived. While bullish macro prints are changing trading approaches to early rate cut predictions, they bolster the notion of a hard landing being avoided. US stocks were set to extend gains on Monday, with futures on the S&P 500 up 0.3% and on the Nasdaq 100 up 0.5% at 08:47 a.m. in New York. Call option trading volume saw a spike on Friday, suggesting more upside chasing by investors, while net future positioning on the Nasdaq 100 Index has moved from almost flat to significantly long in just six weeks. Story continues Read more: Citis Chronert Says US Stocks Arent as Pricey as They Appear And while some momentum indicators had weakened in the first two weeks of January as the market pulled back, the pendulum is already swinging into the opposite direction. Readings for the Nasdaq 100 Index are positive and even a touch overbought again. Other benchmarks such as the S&P 500 Index are improving, allowing for more gains. More fuel for the rally may come from investors building exposure based on volatility. The VIX future curve has shifted lower over the past month and might further see downside pressure when hedges are being unwound and option dealer positioning adjusts to a market moving higher. This could then act as a slingshot into the virtuous cycle for equities, as fading volatility will generate mechanical reallocation flows from systematic investors, said Nomura strategist Charlie McElligott. The path to fresh all-time highs in the second half of 2024 is certainly still there. And while there are still many what if questions for investors to answer for 2024, the lowered earnings bar and the US Treasury quarterly refunding announcement later this month could help keep the rally going for now. With volatility selling and passive bids still intact, the bears have less than a leg to stand on. The bear dance may be elegant, but its simply not selling tickets, strategists at Tier1Alpha wrote in emailed comments. (Adds additional charts and market commentary) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,932,720 |
2024-01-22 14:12:00+00:00
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{"Bitcoin": [3089, 3259, 3331, 3410, 3479, 4293, 4359, 4490, 4637, 4667, 4929]}
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{}
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Cathie Wood’s Latest Stock Picks: 11 Biggest Positions
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https://finance.yahoo.com/news/cathie-wood-latest-stock-picks-141200408.html
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Insider Monkey
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http://www.insidermonkey.com
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In this piece, we will take a look at Cathie Wood's latest stock picks and the 12 biggest positions in Ark Invest's latest investment portfolio. If you want to skip our overview of the well known hedge fund boss, her firm, and the latest news, then you can skip ahead to Cathie Wood's Latest Stock Picks: 5 Biggest Positions . The past two years have been some of the toughest in the stock market's recent history. Most investors typically love it when the the economy is growing and capital is easily available since it provides them the opportunity to make comfortable bets rapidly. However, these bets, which often involve high risk growth stocks or firms in the technology industry, can rapidly sour if the broader sentiment about consumer and business economic health becomes uncertain. If you ask us, no one would understand this better than Cathie Wood. In a hedge fund industry that has its fair share of big ticket names, Ms. Wood's hedge fund still manages to stand out from the pack. While most hedge funds often prefer to invest in broader sectors that each perform well in different economic environments, Ark Invest is focused on stocks that it believes have the highest disruptive potential. In 2022, when major indexes rapidly tanked in the wake of Russia's invasion of Ukraine and the lax monetary policies of the coronavirus pandemic, Ark Invest didn't do so well. How do we know? Well, Insider Monkey looked at Cathie Wood's top stock picks for the third quarter of 2022 as part of our coverage of Cathie Wood Is Loading Up On These 12 Stocks . As part of our research for the piece, we discovered that when the Federal Reserve was hiking interest rates in chunks of 75 basis points and Americans were facing double digit inflation, Ark Investment lost nearly all of its money. Data from December 2022 shows that by December 16, 2022, the fund had dropped by an unbelievable 67%. This made Ark one of the worst performing funds at the time, and the hits were evident in the portfolio value. Story continues According to Insider Monkey's research, Ark Investment's portfolio value was $11.5 billion as December 2022 came to a close. While a sizeable amount on its own accord, this marked another eye opening 65% drop over the year ago figure of $33 billion. From the $11.5 billion in December 2022, as of 2023's close, Ark's investment portfolio had slightly grown to sit at $16.8 billion. As for its performance, Ark roared back to life in 2023 as its flagship exchange traded fund (ETF), the Ark Innovation ETF, gained 70% last year. This was unsurprising, as 2023 was quite a tumultuous year that saw many analysts and economists unable to stop scratching their heads. Not only did the U.S. economy not slip into a recession, but the economy kept on growing despite high interest rates. Apart from rates coming down, this was the best that anyone could hope for, and Ark Innovation was also helped by its technology heavy bets which benefited from the A.I. hype. January 2024 so far is shaping out to be a positive month for one of Cathie Wood's favorite securities, Bitcoin. The world's most popular cryptocurrency soared along with the markets last year, after its bloodbath in 2022. Building on this, the SEC finally approved several Bitcoin ETFs in January, and Ark launched its own ETF. The ARK 21Shares Bitcoin ETF (ARKB) is a $279 million ETF. As to Cathie Wood's sentiments about Bitcoin, here's what she had to say to Yahoo Finance after the SEC's Bitcoin ETF approval: Typically in a situation like this where there are a lot of competitors, the market consolidates. So we would expect that to happen. We hope and trust that we will be one of the winners. And I think from our pint of view we have some competitive advantages. A lot of people are talking about fees, and I'll get to that. But there are three competitive advantages that i think are very important. One, our infrastructure and operations. Our partner 21shares has built this infrastructure, and then operating 40 different funds through booms and busts, through halvings and forks, and airdrops and you know through periods that the ETF industry just has never seen. So our infrastructure is battle tested. The second is research. As you know we give all of our research away. Our first blog on Bitcoin was the year of our founding, 2014. Our first whitepaper, Bitcoin Couldn't Serve The Three Roles of Money, we did in collaboration with Art Laffer. In 2015. We gained our first exposure in Bitcoin at $250 and have never left it. We think this story has just begun. So we've been putting prolific research out there, and now we have the Bitcoin monthly report, and a Bitcoin brainstorm monthly. So we continued to give our researc h away, as does our partner at 21shares. And then the third, and this is not to be underestimated. The third competitive advantage that we have is a sales force that started selling our exposure to Bitcoin in 2016. That's when we partnered with Resolute Investment Management. With these details in mind, let's take a look at some of Cathie Wood's latest stock picks. Some notable names in this list are Tesla, Inc. (NASDAQ: TSLA ), UiPath Inc. (NYSE: PATH ), and Coinbase Global, Inc. (NASDAQ: COIN ). Cathie Wood's Latest Stock Picks: 11 Biggest Positions Cathie Wood of ARK Investment Management Our Methodology To compile our list of Cathie Wood's latest stock picks, we scanned through Ark Investment's SEC filings for Q4 2023 and picked the firm's top 12 stock picks. For these stocks we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years ( see the details here ). That’s why we pay very close attention to this often-ignored indicator. Cathie Wood's Latest Stock Picks: 11 Biggest Positions 11. Shopify Inc. (NYSE: SHOP ) Number of Hedge Fund Investors In Q3 2023: 69 Ark Investment's Q4 2023 Investment Value: $468 million Shopify Inc. (NYSE:SHOP) is a Canadian eCommerce company headquartered in Ottawa, Canada. Cathie Wood's Ark Invest trimmed its stake in the company by 17% during Q4 2023. As the quarter started, Shopify Inc. (NYSE:SHOP)'s shares were up by 57% during the year as markets remained buoyed by strong investor interest in artificial intelligence. As of Q3 2023 end, 69 out of the 910 hedge funds part of Insider Monkey's database had bought and owned a stake in Shopify Inc. (NYSE:SHOP). ARK Investment Management was the firm's biggest hedge fund investor in our database as it owned 6.9 million shares that were worth $379 million. Along with UiPath Inc. (NYSE:PATH), Tesla, Inc. (NASDAQ:TSLA), and Coinbase Global, Inc. (NASDAQ:COIN), Shopify Inc. (NYSE:SHOP) is one of Cathie Wood's latest stock picks. 10. Unity Software Inc. (NYSE: U ) Number of Hedge Fund Investors In Q3 2023: 27 Ark Investment's Q4 2023 Investment Value: $498 million Unity Software Inc. (NYSE:U) is a technology company that provides developers with the tools to develop applications such as video games. Its shares have lagged broader markets when it comes to performance over the past 12 months, which is unsurprising especially as the firm has missed analyst EPS estimates in all four of its latest quarters. During last year's third quarter, 27 out of the 910 hedge funds covered by Insider Monkey's research had invested in the firm. Unity Software Inc. (NYSE:U)'s largest stakeholder among these is Jim Davidson, Dave Roux, and Glenn Hutchins's Silver Lake Partners as it owned $1 billion worth of shares. 9. CRISPR Therapeutics AG (NASDAQ: CRSP ) Number of Hedge Fund Investors In Q3 2023: 24 Ark Investment's Q4 2023 Investment Value: $534 million CRISPR Therapeutics AG (NASDAQ:CRSP) is one of the hottest companies in the medical scene right now. It allows firms to develop genetic editing technologies, and as 2023 came to a close, its sickle cell treatment was approved by the FDA. Perhaps this was also why Cathie Wood increased her stake in CRISPR Therapeutics AG (NASDAQ:CRSP) by 20% during Q4 2023. Insider Monkey dug through 910 hedge fund holdings for 2023's September quarter to find 24 CRISPR Therapeutics AG (NASDAQ:CRSP) shareholders. ARK Investment Management was the biggest investor due to its $325 million stake. 8. Twilio Inc. (NYSE: TWLO ) Number of Hedge Fund Investors In Q3 2023: 43 Ark Investment's Q4 2023 Investment Value: $540 million Twilio Inc. (NYSE:TWLO) is a software company that allows businesses to use cloud computing for their customer relationship management needs. The firm has beaten analyst EPS estimates in all four of its latest quarters, and the shares are rated Buy on average. During last year's third quarter, 43 out of the 910 hedge funds profiled by Insider Monkey had invested in the firm. Twilio Inc. (NYSE:TWLO)'s largest shareholder in our database was David Blood and Al Gore's Generation Investment Management due to its $505 million investment. 7. Roblox Corporation (NYSE: RBLX ) Number of Hedge Fund Investors In Q3 2023: 34 Ark Investment's Q4 2023 Investment Value: $544 million Roblox Corporation (NYSE:RBLX) is a well known software company known for providing an immersive virtual 3D experience called the metaverse. According to data from Sensor Tower, Q3 2023 was a great quarter for the firm as its daily average users (DAUs) grew by 29% annually. During the same time period, out of the 910 hedge funds covered by Insider Monkey's study, 34 had held a stake in Roblox Corporation (NYSE:RBLX). ARK Investment Management was the biggest investor as it owned 11.9 million shares that were worth $346 million. 6. Zoom Video Communications, Inc. (NASDAQ: ZM) Number of Hedge Fund Investors In Q3 2023: 30 Ark Investment's Q4 2023 Investment Value: $788 million Zoom Video Communications, Inc. (NASDAQ:ZM) is a technology firm that enables users to stay in touch and collaborate digitally through their homes or offices. The firm's investors were in for some bad news in January 2024 as BNP Paribas downgraded the stock to Underperform from Neutral and set a $60 share price target for a $7 downside from the current share price. 30 out of the 910 hedge funds part of Insider Monkey's Q3 2023 database were the firm's shareholders. Zoom Video Communications, Inc. (NASDAQ:ZM)'s largest investor fund shareholder was ARK Investment Management since it owned a $712 million stake. Zoom Video Communications, Inc. (NASDAQ:ZM), Tesla, Inc. (NASDAQ:TSLA), UiPath Inc. (NYSE:PATH), and Coinbase Global, Inc. (NASDAQ:COIN) are some of Cathie Wood's latest and biggest stock positions. C lick here to continue reading and check out Cathie Wood's Latest Stock Picks: 5 Biggest Positions . Suggested articles: 10 Dividend Aristocrats That Slashed Their Dividends 12 Best Undervalued Energy Stocks To Buy According to Analysts 16 Countries That Produce the Best Architects in the World Disclosure: None. Cathie Wood's Latest Stock Picks: 11 Biggest Positions is originally published on Insider Monkey.
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1,705,933,161 |
2024-01-22 14:19:21+00:00
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{"Bitcoin": [4203]}
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{}
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Wilson Racket Maker Seeks as Much as $1.8 Billion in US IPO
|
https://finance.yahoo.com/news/wilson-racket-maker-amer-seeks-122118309.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Amer Sports Inc., the maker of Wilson tennis rackets and Salomon ski boots, is seeking to raise as much as $1.8 billion in what would be one of the years first major initial public offerings. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks In a listing that could further accelerate the pace of IPOs after a two-year slump, Amer Sports is selling 100 million shares at $16 to $18 each, the company said in a statement Monday, confirming an earlier Bloomberg News report. Pricing the offering at the top end of the range would value Amer at about $8.7 billion, according to data compiled by Bloomberg. The listing would be the biggest in the US since a crop of IPOs led by semiconductor designer Arm Holdings Plcs $5.23 billion offering in September failed to deliver a hoped-for rebound in the market. While Arms shares have since gained 54% from the offer price, Birkenstock Holding Plc had gained less then 1% as of Friday, while Instacart and Klaviyo Inc. remained well below their offer prices. The largest IPO since Birkenstocks $1.48 billion listing in October was Thursdays $1 billion offering of American depositary shares by investors in Kazakhstan mobile app company Kaspi.kz. Also this month, Smith Douglas Homes Corp. raised about $162 million. Read More: IPO Market Rebound Hinges on Post-Debut Trading, Retails Return This week, KKR & Co.-backed BrightSpring Health Services Inc. and clinical stage biopharmaceutical company CG Oncology Inc. are scheduled for share sales. Including a sale of convertible securities, BrightSpring is seeking to raise as much as $1.36 billion on Thursday, the day after CG Oncologys listing targeting $212 million is set to price. Story continues Amer Sports, which is backed by Chinas largest athletic-apparel producer Anta Sports Products Ltd., owns brands including Louisville Slugger baseball bats, Arcteryx outdoor gear and Atomic winter equipment. Three existing investors in the company Anta, Anamered Investments Inc. and Tencent Holdings Ltd. have agreed to buy shares at the offering price, according to a regulatory filing Monday. Anta and Anamered will buy up to $220 million of stock each, while Tencent will buy as much as $70 million, the filing shows. Anamered is the investment firm of Chip Wilson, founder of yoga-apparel retailer Lululemon Athletica Inc. From Finland to China Founded in Finland, Amer Sports has found Greater China to be a source of growth, driving nearly one-fifth of its total revenue in the first nine months of 2023 with significant runway for growth in the region as it opens more stores and scales its e-commerce platform, its filings show. The company had a net loss of about $115.6 million on revenue of $3.05 billion for the nine months ended Sept. 30, according to the filings. It sees a collective market opportunity across its brands of approximately $522 billion as of 2022. Amer Sports has more than 10,800 employees globally, and offices in Helsinki, Munich, Krakow and Shanghai, according to a statement. A consortium led by Anta acquired Amer Sports for about $5.2 billion in 2019 as part of an effort to bring high-end athletic equipment to Chinas increasingly wealthy middle class. The buyer group also included Tencent and Chip Wilson. Amer Sports IPO is being led by Goldman Sachs Group Inc., Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley. The IPO is set to price on Jan. 31 and to trade the following day, according to terms of the deal seen by Bloomberg News. Amers underwriters can sell an additional 15 million shares if theres enough demand, according to the statement. The company plans for its shares to trade on the New York Stock Exchange under the symbol AS. (Updates with valuation in second paragraph and timing in the penultimate paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,934,276 |
2024-01-22 14:37:56+00:00
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{"Bitcoin": [488, 930]}
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{}
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FTX-tied Alameda Research drops lawsuit against Grayscale
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https://finance.yahoo.com/news/ftx-tied-alameda-research-drops-143756247.html
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Reuters
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http://www.reuters.com/
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Jan 22 (Reuters) - Bankrupt cryptocurrency exchange FTX's affiliate Alameda Research has dropped a lawsuit against Grayscale Investments that had accused the digital asset manager of "enriching itself at shareholders' expense," a court filing showed on Monday. Alameda, which filed the lawsuit in a Delaware court in March last year, had also accused Grayscale of charging high fees and refusing to allow investors to redeem their shares from its two crypto-focused trusts, the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust. Grayscale CEO Michael Sonnenshein was named in the lawsuit along with parent company Digital Currency Group (DCG) and its CEO, Barry Silbert. Grayscale did not immediately respond to a Reuters request for comment. GBTC began trading as an exchange-traded fund earlier in the month on NYSE Arca after the U.S. Securities and Exchange Commission approved to convert its existing Grayscale Bitcoin Trust into an ETF. Since it went bankrupt in Nov. 2022, FTX has been trying to recover assets to repay its creditors. (Reporting by Pritam Biswas in Bengaluru; Editing by Anil D'Silva)
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1,705,934,370 |
2024-01-22 14:39:30+00:00
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{"Bitcoin": [304]}
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{}
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Pastor blows proceeds from $3 million crypto scam on home renovations, blames ‘the Lord’
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https://finance.yahoo.com/news/pastor-blows-proceeds-3-million-143930448.html
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Fortune
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http://fortune.com/
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One of the best parts of writing about crypto is the constant supply of colorful villains. Think of wild-haired Sam Bankman-Fried, whose $30 billion con took in celebrities and politicians, or Razzlekhan , the wannabe rapper who was one half of the Bonnie-and-Clyde duo behind one of the world's biggest Bitcoin heists. Last week brought us a new name to add to the cast of crooks: Denver internet pastor Eli Regalado, whose sheer chutzpah should get him honorable mention on any list of all-time crypto villains. According to Colorado's securities regulator, Regalado ran a small-time swindle in which he and his wife pulled in over $3 million persuading hundreds of people to invest in something called INDX coin. His appeals, which were heavy on Old Testament–style words like "sowing" and "tithing," promised those tied to his online church that they would earn a 10x return by buying it. Not surprisingly, they did not make 10x but instead lost their money—not least because the Regalados spent a good chunk of it on sprucing up their house, according to the regulator. A Denver business publication further reported the couple blew more of the money—which they had said would help "widows and orphans"—on a Range Rover, jewelry, and, of course, luxury handbags. These reports suggest Regalado is in a fair amount of trouble, but rather than shut up and seek a good lawyer, he responded to Colorado's allegations by posting a 10-minute video to the crypto project's website. Near the opening, he says misappropriating the funds wasn't his decision but that "several hundred thousand went to a home remodel the Lord told us to do." Later in the video, Regalado explains he launched the crypto hustle because he believed "God was doing a new thing." While his theology may be shaky, his grasp of finance may be even worse as, in the video, Regalado throws around terms like "leverage" and "liquidity" without appearing to understand what they mean. At one point in the video, he describes "$300 million of coins sown before the exchange went live"—but as the Colorado regulator explains, the coins are worthless, in no small part because the only place they could be traded was the Kingdom Wealth Exchange, a service operated by the Regalados that is defunct and barely functioned in the first place. Story continues The next steps are likely to involve the state of Colorado grabbing whatever remaining funds are available and returning them to investors. Regalado, meanwhile, used his video to predict the INDX mess will work itself out since "God is going to work a miracle in the financial sector." Jeff John Roberts jeff.roberts@fortune.com @jeffjohnroberts This story was originally featured on Fortune.com
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1,705,934,734 |
2024-01-22 14:45:34+00:00
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{"Bitcoin": [3998]}
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{}
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Boeing Scrutiny Spreads After FAA Check on Another 737 Model
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https://finance.yahoo.com/news/boeing-scrutiny-spreads-faa-seeks-103739094.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Scrutiny of Boeing Co.s manufacturing quality expanded after federal regulators told airlines to check the door plugs on a second 737 model, where operators have also found issues with fasteners. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks The US Federal Aviation Administration recommended that airlines inspect 737-900ER models that use mid-aft plugs of the same type that failed on an Alaska Airlines flight this month. The 737-900ER is an earlier model than the Max 9 used on Flight 1282 on Jan. 5. Shares of Boeing fell as much as 0.9% and were 0.5% down at 9:36 a.m. in New York. The stock has fallen 18% this year, the worst performance among members of the Dow Jones Industrial Average. According to Boeing data, 505 of the 737-900ER type of planes have been delivered to airlines globally. Not all utilize the door plugs, as their use is dependent on airlines seat configurations. The move will offer an added level of safety, the FAA said in a statement late Sunday. It recommended airlines make visual inspections of the plugs to ensure the door is properly secured. Some 737-900ER operators have noted findings with bolts during inspections, the FAA said separately. Read More: Alaska Air Finds No Issues So Far on Boeing 737-900ER Checks Manufacturing quality at Boeing is undergoing a deep dissection by regulators, customers and the planemaker itself in the wake of the Flight 1282 blowout. A plug covering a door-sized gap in the frame tore off at 16,000 feet, exposing passengers to potentially being sucked out of the aircraft. While the plane landed safely, the FAA grounded 171 Max 9 jets. The safety regulator has since launched a probe into Boeing quality, and said it would increase its oversight of production and manufacturing. Airlines from Alaska Air Group Inc. to Ryanair Holdings Plc have also said theyll add inspectors at Boeing plants. Boeing said in a statement that it fully supports the FAA and our customers in this action. Story continues The major operators of the 900ER include United Airlines Holdings Inc., Alaska Airlines and Delta Air Lines Inc. Others include Korean Air, Indonesias Lion Air, and El Al. United, which has 136 737-900ERs in its fleet, said it started proactive inspections earlier this week, and expects them to be completed in the next few days. Meanwhile, its Max 9s will continue to be grounded through Friday. Delta had 163 of the 900ER jets in its fleet as of September last year. It said in a statement that it planned to undergo inspections and it didnt anticipate any operational impact. Inspections of the Max 9 plug door can take up to eight hours and the visual checks required by the FAA for the 900ER are specific to four locations where a bolt, nut and pin installation is used to secure the door to the airframe. The detail of the work suggests stripping back the door plug to its bare frame to undertake the checks. Most airlines so far have stressed no impact on flights relating to the new measures. Prior to the Alaska Air incident, federal regulators had already stepped up oversight of Boeing since a pair of 737 Max crashes in 2018 and 2019 killed 346 passengers and crew. FAA inspectors are required to sign off on every 737 and 787 prior to delivery, work it had previously delegated to employees of the planemaker. Last year, Boeing had separate issues with loose or missing bolts on 737 rudder-control systems, installation of vertical tail fins and mis-drilled holes in the aft pressure bulkheads. --With assistance from Ryan Beene. (Updates with opening trading in third paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,935,305 |
2024-01-22 14:55:05+00:00
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{"Bitcoin": [4380]}
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{}
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Alphabet’s Moonshot X Lab Cuts Staff, Turns to Outside Investors
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https://finance.yahoo.com/news/alphabet-moonshot-x-lab-cuts-140000191.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) — Alphabet Inc.’s lab for pioneering technology is laying off dozens of employees as it turns to outside investors to help fund its ventures. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Gloom Over China Assets Is Spreading Beyond Battered Stocks Hedge Funds Rake in Huge Profits Betting on Catastrophe Risk The division, known as X, has in recent months ramped up discussions on funding with venture capitalists and other investors, according to people with knowledge of the matter who asked not to be named as it is private. The lab is adopting a new structure that’ll enable its projects to more easily spin out of X as independent startups with support from Alphabet and outside backers, according to one of the people and an email to staff obtained by Bloomberg. X seeks bold approaches to major challenges like climate change and connectivity, but its efforts have yielded few durable businesses thus far. “We’re expanding our approach to focus on spinning out more projects as independent companies funded through market-based capital,” Astro Teller, who leads to lab, wrote in the email. “We’ll do this by opening our scope to collaborate with a broader base of industry and financial partners, and by continuing to emphasize lean teams and capital efficiency.” As part of the restructuring, X is laying off dozens of employees, according to one of the people with knowledge of the matter. The layoffs are focused on support staff, the person said. Alphabet didn’t respond to an email seeking comment. Launched by Google co-founders Larry Page and Sergey Brin, X has captured the public imagination by pursuing projects from self-driving cars to high-altitude balloons that connect remote communities to the internet. But in recent years the lab has come under more pressure to show that it can turn its speculative bets into profitable businesses, and Alphabet as a whole is waging a campaign to cut costs. Read more: Job Cuts at Google Are Now ‘Business as Usual’: Tech Daily This month, Google eliminated hundreds of jobs on teams including hardware and engineering, with more cuts potentially on the way as it sharpens its focus on artificial intelligence. Alphabet Chief Financial Officer Ruth Porat, who has sought to instill greater financial discipline, is moving into a new role as president and chief investment officer, in which she will oversee a division that includes X. Story continues “She will put more heat into the kitchen and help drive success and viable businesses,” Dan Ives, an analyst at Wedbush Securities, wrote in an email. Since Google reorganized itself as a conglomerate in 2015, X’s moonshots have sought to “graduate” as Other Bets, or independent ventures under the banner of parent company Alphabet. But Alphabet could only accommodate so many Other Bets, creating a bottleneck for X ventures that were ready to take the next step, according to one of the people with knowledge of the matter. Startups within X often faced a choice between waiting for a spot to open up or striking out on their own. X employees had explored raising outside capital for their ventures in the past, but they ran into concerns from Alphabet leadership, according to two people with knowledge of the matter. In addition to seeking venture capital, X has met with family offices, sovereign wealth funds, private equity firms and strategic investors, or companies operating in the same industries that the moonshots are targeting, according to the people. Silicon Valley’s innovation labs have come under threat in a time of layoffs and budget cuts. Last year, Google slashed most jobs at Area 120, an in-house startup incubator. X cut some jobs last year but has refrained from making more significant changes until now. “This approach will give us more opportunity to focus on what Xers do best: inventing breakthrough technologies to help solve some of the world’s most pressing challenges,” Teller wrote in the note to staff. “Because the world needs moonshots more now than ever.” —With assistance from Sarah McBride, Mark Bergen and Sankalp Phartiyal. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,935,612 |
2024-01-22 15:00:12+00:00
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{"Bitcoin": [940]}
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{}
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Robert Kiyosaki: Save Your Financial Future With This Investment
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https://finance.yahoo.com/news/robert-kiyosaki-save-financial-future-150012346.html
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GOBankingRates
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https://www.gobankingrates.com/
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©Robert Kiyosaki On a recent episode of his YouTube channel , money guru Robert Kiyosaki raised some interesting points about building a secure financial future . On the show, the money maven says he cringes every time he’s told by some kid that they’re doing as they’re told and buying real estate. He says he generally tells them that he recommended real estate 20 years ago but that now it’s going down. He advocated for putting your money into silver and gold instead. “America today is the biggest debtor nation in history. We cannot print any more money,” Kiyosake argued. “Our country is broke.” See: ‘Rich Dad’ Robert Kiyosaki Reveals His 2024 Master Plan and His Advice for Becoming a Millionaire More: 3 Things You Must Do When Your Savings Reach $50,000 Similarly, he expressed his views to his over 2.4 million followers on X (formerly Twitter) with a post urging people to “Get out of FAKE money system. Get into gold, silver, Bitcoin now…before it’s too late.” Here’s some other money advice Kiyosaki has imparted to build up your financial future. Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief. Retire Well by Investing In Cash-Flowing Assets — Not Savings Kiyosaki is not a fan of the traditional view of saving up a sizable “nest egg.” Instead, he believes in stocking up on cash-flowing assets that will provide a steady financial stream long into the future. “By purchasing and saving cash-flowing assets, you could build a pipeline of cash flow for life — a pipeline that would produce cash in good times and bad, in market booms and market crashes,” he explained to blogger Jeff Rose in a post on DailyFinance. “Your cash flow would increase automatically with inflation and, at the same time, allow you to pay less in taxes. [This] means your standard of living does not have to decrease, but can actually increase.” Read: How I Make $5,000 a Month in Passive Income Doing Just 10 Hours of Work a Year Diversifying Your Assets Is Key When it comes down to investing for the long-haul, Kiyosaki gives some advice for people looking to get out of the rat race. Story continues “I’d suggest looking at the various asset classes and deciding what interests you. In my opinion, I like to see income coming in from all the asset classes — business, paper assets, commodities and real estate,” he told GOBankingRates in 2023 . “That’s true ‘diversification’ of your assets, and a safety net that’s a way of hedging your ‘bets’ in any one investment arena or sector. Business can be a small business you own and plan to grow or sell. Commodities can be silver or gold coins. Paper assets can be a few shares in a stock that interests you — because having skin in the game, even if it’s just a little bit, will heighten your awareness related to markets, trends and money. Rental real estate is a way to use debt (good debt that your tenants pay) for both leverage, cash flow and possibly capital gains. Bottom line: You need a plan. Start small. Learn along the way. Keep learning.” Treat Paying Yourself as a Bill For most people, paying themselves only comes after they make sure to pay off their other bills, but according to Kiyosaki, this is the wrong approach. Instead, he advocates for paying yourself as a priority akin to any of your other monthly bills. “Most people use their budget as a plan to become poor or middle class rather than to become rich,” he wrote on GOBankingRates . “My budget is a plan to become rich. You have to make a surplus an expense.” Use Your Ideas as Your Top Investment Strategy In one of Kiyosaki’s most controversial takes, he makes the case that you don’t in fact need money for investing, you need ideas. “I’m often asked how to start investing with little or no money,” he wrote on Facebook. “Please hear this as this is the hardest thing for people to understand: You do NOT invest with money! You invest with your mind! No matter what the field, your biggest asset is your mind. Once you have knowledge, you find deals, find your team and use other people’s money. You sell the deal and your team to get investment money.” Do Your Homework, Measure the Risk If you want to be rich, you can’t rely on the dollar alone. On his site , Kiyosaki is a firm proponent of investing in assets that can hedge against inflation. “Commodities such as gold and silver have a world market that transcends national borders, politics, religions and race. A person may not like someone else’s religion, but he’ll accept his gold.” To be rich, he advises, you have to start thinking like you’re rich, and that means to quit chasing the dollar. More From GOBankingRates I'm a Shopping Expert: 9 Items I'd Never Put in My Grocery Cart Luxury Living on a Budget: 6 Tips for the Upper Middle Class Experts: Make These 7 Money Resolutions If You Want To Become Rich on an Average Salary 4 Reasons You Should Be Getting Your Paycheck Early, According to An Expert This article originally appeared on GOBankingRates.com : Robert Kiyosaki: Save Your Financial Future With This Investment
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1,705,935,668 |
2024-01-22 15:01:08+00:00
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{"Bitcoin": [4212]}
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{}
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Five Key Charts to Watch in Global Commodities This Week
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https://finance.yahoo.com/news/five-key-charts-watch-global-220000908.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Houthi attacks on merchant shipping in the Red Sea continue to menace global trade, threatening food supplies and delaying oil deliveries to Europe as tankers switch routes to travel the longer way around Africa. Even so, crude futures remain subdued as are charter rates to at least one destination. Meanwhile, a price slump deepens for minerals critical to electric-vehicle batteries just as Tesla Inc. is poised to report quarterly earnings, shedding light on EV adoption. Agriculture traders will be closely monitoring the US Department of Agriculture’s monthly cold storage report Wednesday for clues on demand. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Here are five notable charts to consider in global commodity markets as the week gets underway. Oil Tensions in the Middle East remain front and center with no let-up in attacks by the Iran-backed Houthi militants in the oil-rich region despite US-led airstrikes. Still, crude futures are taking little notice as the crisis has yet to take a direct hit on production in a world of ample supplies. West Texas Intermediate futures traded in a $4.41 range last week, while the global benchmark Brent remains below $80 a barrel. Oil edged higher Monday, following the broader market. Shipping Attacks on vessels in the Red Sea have raised concern about an escalating situation in the region, but charter rates for massive oil tankers to at least one destination are painting a slightly different picture. So far, those ships don’t appear to have been purposely targeted and that’s putting a lid on transport costs for the key Arab Gulf-to-China route. While the cost to charter Very Large Crude Carriers (VLCC) spiked after Hamas’s attack of Israel in early October, rates are now below $40,000 a day and heading back down toward the five-year average, according to data from Galbraiths. The Middle East produces about a third of the world’s crude and most is sent to Asia. Story continues Electric Vehicles Spot prices of lithium carbonate — a refined form of lithium — continue to slide. After surging to a record in late 2022 on the promise of electrification in the automotive sector, prices have plunged more than 80% as the market grappled with shortage fears to oversupply. That has forced Albermarle Corp. — the world’s biggest lithium producer — to reduce project spending and costs. Even so, the appetite for the indispensable metal in the making of EV batteries is set to grow. Investors will be keenly watching fourth-quarter results from Tesla on Wednesday for insight on sales and the demand outlook. The automaker’s profitability continues to be eroded by vehicle price cuts. Agriculture Chilled US stockpiles of pork bellies, the cut used to make bacon, are trending below average. That comes amid a decline in overall pork production that’s helping push up wholesale prices, which are at the highest since late September. Traders will be focused on the USDA’s monthly cold storage report for the latest on pork demand, as well as other meats, dairy goods, poultry, fruits and vegetables. Natural Gas At a time of frigid temperatures in the US, one would expect to see soaring prices of natural gas — the heating and power fuel. Not so. Unusually high inventory levels and shifting forecasts to warmer weather have kept prices in check. Futures tumbled 24% last week, capping the biggest weekly selloff since December 2021, after a lower-than-expected storage withdrawal renewed concerns over a supply glut. Still, volatility will likely remain with two months of winter remaining in the Northern Hemisphere. Natural gas traded lower on Monday. --With assistance from Millie Munshi. (Updates with Monday’s oil prices in third paragraph and natural gas prices in final. Refreshes oil, shipping, lithium and natural gas charts.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,935,929 |
2024-01-22 15:05:29+00:00
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{"Bitcoin": [2147]}
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{}
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Petroperu Bonds Tumble as Government Squashes Bailout Hopes
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https://finance.yahoo.com/news/peru-says-lacks-funds-bail-023807053.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Dollar bonds from Petroleos del Peru SA slumped Monday in low trading volume after Peru said it won’t bail out the struggling state-owned oil company. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Notes due in 2032 fell over 2.5 cents on the dollar to 71 cents, the biggest intraday decline since August 2022, according to indicative pricing data compiled by Bloomberg. “We will not inject the requested cash for a simple reason, because we don’t have the funds to do so,” Prime Minister Alberto Otarola said in an interview on news channel Latina Sunday following Petroperu’s request for a $2 billion rescue package. “We think there are other priorities.” Otarola’s remarks will deepen the financial crisis at Petroperu, as the company is known, which has been warning about its dwindling cash position for months. The company is mired in debt tied to the construction of a $6 billion refinery that opened late last year. Read More: Petroperu Is Asking for Nearly $2 Billion in Government Support Petroperu has said it needs $1.15 billion in cash soon to pay suppliers of the refinery and to convert a $750 million loan with the government into shares. Otarola said the government would finance neither of those, but would reschedule debt payments. Petroperu had already received a cash injection worth $1 billion in 2022, when it faced a similar crisis. It has outstanding bonds with private investors due in 2032 and 2047 that helped fund the construction of the refinery. “We can’t fall into the other extreme either and say that Petroperu should go bankrupt,” Otarola said, without elaborating on how the company would continue operating if it runs out of cash. --With assistance from Zijia Song and Philip Sanders. Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,936,625 |
2024-01-22 15:17:05+00:00
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{"Bitcoin": [4753]}
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{}
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Drone Attacks Menace Russia’s Key Route for Exporting Oil
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https://finance.yahoo.com/news/drone-attacks-menace-russia-key-133339179.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- A new front opened in Russia’s war on Ukraine that highlights the vulnerability of oil exports from the nation’s western ports, after reports of drone attacks against facilities on the Baltic coast. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Last week, the first ever Ukrainian drone reached Russia’s Leningrad region, some 1,000 kilometers (620 miles) from the border. That aircraft was downed over the privately-owned Petersburg Oil Terminal without causing damage, according to Russian authorities. A second drone attack on Sunday, which an official with knowledge of the matter said was organized by Ukraine’s secret services, was more disruptive. It caused a fire that shut down a Novatek PJSC gas-condensate plant in port of Ust-Luga that supplied fuel to the Russian army, according to the official who spoke on condition of anonymity. The facility was also close to some of Russia’s most important oil-export terminals. As the war in Ukraine once again enters a phase of attrition targeting energy infrastructure, these attacks are worrying oil-market watchers. “Regular attacks or heavier drones may disrupt Baltic port operations and cause reductions of export volumes,” said Sergey Vakulenko, an industry veteran who spent ten years of his 25-year career as an executive at a Russian oil producer. If that happened, “Russia would not have many viable alternatives.” Keeping Russia’s oil exports steady is crucial for the Kremlin, which receives some 30% of total budget revenues from the nation’s energy industry. The flow of petrodollars is helping to finance the war in Ukraine as it nears its third year, while also funding domestic spending in the run-up to presidential elections in March. Story continues A serious disruption to Baltic exports would also be felt around the world. Russia is a top-three global oil producer and the largest supplier to China last year. The crude market is already on heightened alert after attacks on shipping in the Rea Sea, and despite its support for Ukraine the West has long been reluctant to see Russian oil taken off the global market because of the impact it would have on prices. “A halt in Baltic exports would be a major shock,” said Viktor Kurilov, senior oil markets analyst at consultant Rystad Energy A/S. Two major Baltic oil terminals run by state-owned Transneft PJSC — Ust-Luga and Primorsk — shipped around 1.5 million barrels a day, more than 40% of the Russia’s total seaborne crude exports on average from January to November last year, according to Bloomberg calculations based on the industry data. In addition, some cargoes of Kazakh crude are also loaded at Ust-Luga. The facilities load more than 75% of Urals, Russia’s main crude-export blend that is shipped to dozens of nations, according to data from intelligence firm Kpler. In the event of an attack, it would be next to impossible for the nation’s producers to redirect flows of this size to any other port, according to analysts. There are export terminals in the Barents Sea, but they are “accessible by rail only and have limited capacity,” said Vakulenkо, who is now a scholar at the Carnegie Endowment for International Peace in Berlin. “The route to China and Pacific ports is full, so not a single barrel can be diverted there.” The Black Sea port of Novorossiysk could accept an extra 300,000 barrels a day, not enough to cover for Ust-Luga flows, estimated Viktor Katona, Kpler’s lead crude analyst. In addition, Novorossiysk is even more vulnerable to air drones attacks from Ukrainian territory and there is also a threat from marine drones, Vakulenko said. Crude exports were briefly halted on Sunday after the drone attack on the Novatek facility, but resumed on Monday morning, according to vessel-tracking data compiled by Bloomberg. Right now the risk of a full halt in Baltic shipments seems minimal, said Rystad’s Kurilov. To counter further attacks, Russia has put its key infrastructure in the Baltic Leningrad region on “high-alert mode,” according to the regional authorities. “Security units and law enforcement agencies received orders to destroy unmanned aerial vehicles if they are detected in territories,” adjacent to the regional strategic infrastructure, the authorities said in a Telegram statement late on Sunday. (Updates with comment from an official in third paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,937,022 |
2024-01-22 15:23:42+00:00
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{"Bitcoin": [6577]}
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{}
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Trumps Former Chief Usher Raises $100 Million Homebuyer Fund
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https://finance.yahoo.com/news/trump-former-chief-usher-raises-152342438.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- A former White House chief usher during Donald Trumps presidency raised about $100 million for a real estate fund to help first-time homebuyers make down payments. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Timothy Harleth is launching Generational Equity Labs. The Washington-based fund plans to use a technology platform linking would-be homebuyers to institutions that will essentially co-invest in a concept dubbed equity sharing. Investors will be able to buy and sell their shares of the real estate funds that hold the home equity stakes. While Americans have traditionally relied solely on debt to finance home purchases, rising interest rates have left prospective buyers unable to afford mortgages and discouraged existing property owners from taking out home equity loans or refinancing. Selling fractional interests to investors has emerged as an alternative way for Americans to tap roughly $30 trillion of wealth locked up in their homes. From Wall Streets perspective, its an enormous amount of home equity that is illiquid that they might help households access, said Tomasz Piskorski, a professor of real estate finance at Columbia Business School. Even if you get just a small portion of this, its a pretty substantial business opportunity. Harleth, previously director of rooms at the former Trump International Hotel in Washington, was recruited by First Lady Melania Trump to serve as chief usher the White Houses head of household staff and operations. He began setting up Generational Equity after being dismissed from that job on the morning of Jan. 20, 2021 hours before President Joe Biden moved in to the executive mansion. A November filing with the US Securities and Exchange Commission lists one other Generational Equity shareholder, Marcia Lee Samples, Trumps former director of White House Management, who later served as chief executive officer of the 2020 Republican National Convention. Story continues Harleth, 40, cites his family history including the plight of his grandmother, who migrated to the US as an indigenous Mexican and was homeless until being taken in by a Native American reservation as motivation for creating Generational Equity. Teaming up with a co-investor results in a larger down payment, allowing the prospective homebuyer to take out a smaller, more affordable mortgage. The investor in turn gets to share in the propertys future appreciation. GEL is building a marketplace that will enable homebuyers to finance their house using both equity and debt, the company said in an emailed statement. This process will result in responsible and sustainable homeownership, while reducing debt and providing significant affordability for homebuyers. Heres how it works: After obtaining a mortgage from an approved lender, the homeowner and Generational Equity would enter into a shared-equity agreement. The firms real estate fund would then pay its portion of the purchase price at closing. While the shared-equity agreements would typically last 30 years, investors wouldnt have to wait that long. They can use Generational Equitys technology platform to buy and sell shares in the fund that holds the home-equity stakes. Ohio Focus Generational Equity registered as an exempt investment adviser in November and set up a real estate fund that raised about $100 million from a single investor, according to the filing. The firm plans to initially invest in homes in Ohio. The states relatively affordable housing has, counterintuitively, stung some aspiring homeowners. The low prices attract bids from big investors, including American Homes 4 Rent and VineBrook Homes, that have converted properties into rentals, often charging more per month than a mortgage. This has contributed to rising rents and a dearth of moderately priced homes, drawing scrutiny from lawmakers. Read More: Blackstone to Buy Tricon in $3.5 Billion Rental Housing Deal Republican state Senator Bill Blessing has proposed a monthly tax of $1,500 per property on entities that own more than 50 single-, double- or triple-family homes in one county. US Senator Sherrod Brown, an Ohio Democrat, is co-sponsoring a bill that would restrict tax breaks for investors that own 50 or more single-family rental homes. Housing was rarely discussed as an issue at the statehouse in the past, said Marcus Roth, communications and development director for the nonprofit Coalition on Homelessness & Housing in Ohio. But last year it really exploded. Consulting Staff Generational Equitys consulting staff includes Justin Bis, a onetime executive director of the Ohio Republican Party who was associate director of presidential personnel under Trump. Joseph Bottari, the firms vice president of business development, is a former member of the finance team for the Republican National Committee who worked as an associate director in Trumps National Economic Council. At least four other firms buy or facilitate the purchase of fractional interests from homeowners, including Point, Unison, Unlock and Hometap Equity Partners. Eoin Matthews, a Point co-founder, said he expects the industry to originate $2 billion of fractional home interests this year and $5 billion in 2025. You can buy and sell equity in your home like you can sell some of the stocks in your portfolio, he said in a phone interview. Unlike Generational Equity, Point and most of its peers only deal with existing homeowners. Buying shares in newly purchased homes could be tricky, Matthews said, because stakes in such properties are a riskier piece of equity and very hard to price in the current market. There are also structural and institutional barriers to using equity financing in the US housing market, said Andrew Caplin, an economics professor at New York University. He has seen roughly 50 models for creating partnership markets in residential real estate none of which have succeeded since publishing a book on the subject in 1997. The logic is that you shouldnt go all debt on a big asset, Caplin said. Its generally a very good idea, but one that is very hard to implement. --With assistance from Erin Fuchs. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,937,378 |
2024-01-22 15:29:38+00:00
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{"Bitcoin": [2174]}
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{}
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Private Credit Duels With Banks for $8 Billion DocuSign LBO Debt
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https://finance.yahoo.com/news/private-credit-duels-banks-8-152938833.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Direct lenders are vying with banks to finance a potential buyout of DocuSign Inc. with a debt package totaling as much as $8 billion, according to people with knowledge of the matter. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Bain Capital and Hellman & Friedman are jockeying to acquire the electronic signature platform, though the discussions are ongoing and details may change, according to the people, who asked not to be named discussing a private transaction. Representatives for DocuSign, Bain and Hellman & Friedman declined to comment. Details about the potential take-private deal were reported earlier by Reuters. Read more: How Private Credit Gives Banks a Run for Their Money: QuickTake The proposed loan would be the largest ever direct-lending deal by roughly $3 billion, according to data compiled by Bloomberg, and comes at a time when the competition between banks and direct lenders is reaching a fever pitch. Conditions in the broadly-syndicated loan and junk-bond markets — where private equity firms have traditionally looked to finance multi billion-dollar buyouts — have improved in recent months, in part due to mounting speculation the Federal Reserve’s aggressive interest-rate hiking cycle is over. That could make a debt package arranged by banks more attractive compared to private credit and increase the rivalry between the two sets of lenders. The revival means more competition in the $1.6 trillion private credit market, which boomed over the past 18 months as soaring rates and hung debt made banks cautious about underwriting fresh leveraged buyouts. Read more: Wall Street Tries to Lure Back Loans Lost to Private Credit DocuSign has a market capitalization of nearly $13 billion and went public in 2018. Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,938,967 |
2024-01-22 15:56:07+00:00
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{"Bitcoin": [3136]}
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{}
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JPMorgan Sees Discount Window Proposal as Attempt to End Stigma
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https://finance.yahoo.com/news/jpmorgan-sees-discount-window-proposal-155607546.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- US regulators’ latest attempt to make the Federal Reserve’s discount window part of banks’ everyday liquidity plans could end the tool’s decades-old stigma, according to JPMorgan Chase & Co. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Gloom Over China Assets Is Spreading Beyond Battered Stocks Banks have long been wary of tapping this Fed facility intended to provide emergency funds to firms in need. Yet use of the window has long served as a warning to financial markets that an institution is in trouble, despite regulators insistence that it carries no such taint. The latest proposal, being drafted behind closed doors by the Office of the Comptroller of the Currency, central bank and Federal Deposit Insurance Corp., is a sign they’re serious about making the facility part of the liquidity framework. Michael Hsu, acting comptroller of the currency, spoke last week about a new targeted liquidity requirement that would give credit to banks for their discount window borrowing to cover ultra short-term, acute outflows up to five days. The rule would also give clarity that banks should engage in periodic borrowing from the window for operational readiness. “At a high level, if regulators are successful in changing the perception of the discount window and usage is considered as business-as-usual, this has the potential to enhance overall financial stability by improving the liquidity position of bank,” JPMorgan strategists led by Teresa Ho wrote in a note to clients on Jan. 19. Regulators have sharpened their focus on the discount window in the wake of the failure of multiple regional banks that began in March 2023. During the turmoil, institutions borrowed a record amount of advances, or short-term loans, from the Federal Home Loan Banks, to meet deposit outflows and shore up their financing. Story continues In July, the Fed and FDIC issued a joint statement encouraging institutions to incorporate the window as part of their contingency funding arrangements. The Federal Housing Finance Agency in November released a proposal to overhaul the FHLBs, notably shifting the entities away from their role as the lender of last resort. However, without more details it’s unclear whether regulators’ latest effort is enough to motivate banks to use the discount window as part of its everyday liquidity. Strategists are optimistic that the potential changes could even help facilitate monetary policy as banks get comfortable holding fewer reserves knowing that a de-stigmatized backstop is there. “The discount window along with the Standing Repo Facility might perhaps help the Fed maintain a smaller balance sheet and moderate volatility in the fed funds and repo markets as banks can turn to these facilities as a source of backstop liquidity,” they wrote. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,939,200 |
2024-01-22 16:00:00+00:00
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{"Bitcoin": [3676]}
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{}
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New Zealand Inflation Seen Slowing, But Not Enough for Rate Cuts
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https://finance.yahoo.com/news/zealand-inflation-seen-slowing-not-160000287.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- New Zealand’s inflation probably slowed in the final three months of 2023, though not by enough to prompt the Reserve Bank to seriously consider interest-rate reductions anytime soon. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Stocks Rise as Wall Street Builds on Record Highs: Markets Wrap The consumer price index rose 4.7% in the fourth quarter from a year earlier, economists predicted ahead of data in Wellington on Wednesday. That’s down from 5.6% in the third quarter and below the RBNZ’s 5% forecast. While inflation is anticipated to be the slowest since mid-2021, it remains well above the RBNZ’s 1-3% target and concerns persist that core prices are proving stubbornly strong. That’s likely to encourage the Monetary Policy Committee to keep the Official Cash Rate at 5.5% until at least the third quarter of 2024, even as economic growth cools faster than policymakers expected. “The economy is much smaller than the RBNZ had anticipated and the starting point for inflation is a little lower,” said Sharon Zollner, chief New Zealand economist at ANZ Bank in Auckland. “That said, we remain concerned about sticky domestic driven inflation risks. The RBNZ is likely to proceed with caution given the potential costs of pivoting too early remain very high.” ANZ Bank last week brought forward its expectation of a first rate cut to August from early 2025. New Zealand’s inflation report comes as 2024 is increasingly seen internationally as the year of the rate cut, with the Federal Reserve poised to lead the charge for richer countries. While inflation is mostly retreating around the world, soaring shipping costs and a jump in oil prices are stoking worries about a revival of cost pressures. In late November, the RBNZ said it was concerned that record immigration could fuel inflation, and signaled it may keep the OCR unchanged until 2025. Story continues But within weeks a report showed New Zealand’s gross domestic product unexpectedly contracted in the third quarter and revisions meant the economy was weaker than the central bank had assumed. That prompted investors to aggressively price rate cuts starting in the second quarter, though most economists expect the central bank will wait until the second half of the year. After the GDP report, Governor Adrian Orr said the RBNZ would be assessing that data as well as this week’s inflation report ahead of its Feb. 28 rate decision. He said policymakers are also watching immigration trends and underlying price pressures. “I can’t overemphasize enough that it’s core inflation that’s going to be our challenge ahead,” he said. “The last five yards on the inflation battle is going to be tough.” One of the RBNZ’s preferred core inflation measures slowed to 5.2% in the third quarter. It will also be updated on Wednesday. The central bank doesn’t publicly forecast core inflation, but it does project the non-tradeable price series, which is an estimate of domestic price pressures. It expects that gauge will slow to 5.7% in the fourth quarter from 6.3% three months earlier. “Domestic inflation is moving in the right direction but at a frustratingly slow pace,” said Mary Jo Vergara, senior economist at Kiwibank in Auckland who forecasts non-tradeable prices rose 5.4%. “It’s still a long way back to 3%.” --With assistance from Tomoko Sato. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,939,720 |
2024-01-22 16:08:40+00:00
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{"Bitcoin": [3950]}
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Italy-Germany Yield Gap Reaches Two-Year Low on Rate Cut Bets
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https://finance.yahoo.com/news/italy-debt-risk-measure-drops-081728460.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- A key measure of bond risk in Europe fell to the lowest in almost two years as investors pile into higher yielding debt before the European Central Bank starts cutting interest rates. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Stocks Rise as Wall Street Builds on Record Highs: Markets Wrap The difference between Italian and German 10-year yields fell to about 1.5 percentage points, down from 2 points in late October. The spread is closely followed in debt markets as a key gauge of risk tolerance and metric for how investors view Europes historically stronger and shakier economies. European periphery nations including Portugal, Italy, Greece and Spain, have attracted bond investors as upcoming interest-rate cuts are seen boosting their economies and making their debt pile less costly. Italy, in particular, has also benefited from European fiscal rules that will give countries more flexibility in reducing budget deficits over the long-term. Some investors also point to a more stable political landscape in Italy as a reason for the markets confidence. Prime Minister Giorgia Meloni scored a huge win in November, when Moodys Investors Service said the country was no longer in danger of a cut to junk and raised the rating outlook to stable. Read more: Vanguard Piles Into Europes Periphery Debt as Rate Cuts Near Italy is not doing anything particularly radical in terms of structural reform, but equally its not doing anything particularly wrong, said Charles Diebel, head of fixed income at Mediolanum International Funds in Dublin. In that environment, the yield differentiation is sufficient to make it look attractive. Diebel sees Italy-Germany yield spread falling further to 140 basis points this year and 100 basis points in the medium term. Global bond markets saw a resurgence late last year as investors anticipated lower rates. While the rally was trimmed this month, yields are still much lower than the peaks reached last year and investors price at least five quarter-point cuts from the ECB this year, double what was expected a couple of months ago. Asset manager Candriam recently scrapped its underweight stance on Italian debt, arguing there was no longer any justification in foregoing the higher rates. The countrys 10-year bond yields around 3.85%, compared with 3.22% on the Spanish equivalent and 2.81% for French debt. Story continues Since her election in late 2022, Meloni has consolidated her power with parliament consistently voting as a united front. Thats created a sense that the government that is likely to last and follow through with its policy agenda, which includes spending almost 200 billion ($218 billion) in EU Recovery Fund cash. Still, she is facing several challenges. In December, the Bank of Italy cut its growth forecast for the euro areas third-biggest economy to just 0.6% this year. And there are worries that the market rally is overextended. Mohit Kumar, chief economist for Europe at Jefferies International, said theres potential for the Italy-Germany spread to widen to as much as 180 basis points in the coming weeks. Others say the tightening can persist. Like Diebel, strategists at Citigroup Inc. say the spread could fall to 140 basis points. The tighter spread is down to rate cuts and some progress on EU fiscal rules, which is rather a positive thing for the periphery, said Dario Messi, fixed income strategist at Julius Baer. The momentum could persist, in my view. --With assistance from James Hirai, Alessandra Migliaccio and Sujata Rao. (Updates with ECB rates pricing in seventh paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,940,175 |
2024-01-22 16:16:15+00:00
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{"Bitcoin": [2299]}
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{}
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Aurubis Moves to Terminate CEOs Contract After Copper Scam
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https://finance.yahoo.com/news/aurubis-moves-terminate-ceo-contract-161615711.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Aurubis AG is preparing to terminate the contract of its chief executive and two other executive board members, as the copper producer seeks to move on from a giant raw-material scam. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Stocks Rise as Wall Street Builds on Record Highs: Markets Wrap The companys supervisory board is in advanced talks with Chief Executive Officer Roland Harings, Chief Financial Officer Rainer Verhoeven and Chief Operating Officer Heiko Arnold about ending their contracts, the company said on Monday. It may also appoint Markus Kramer from the supervisory board to the executive board, it said. The move follows Aurubiss decision to carry out an independent legal probe into a criminal scam that cost the copper producer about 169 million ($184 million) last year. The company warned in December that it may make executive changes once the review was concluded. The supervisory board will meet to discuss and resolve its plans on Tuesday, Aurubis said. Aurubiss shares fell 4.2% in Frankfurt trading. Aurubis sent shockwaves through the European copper industry in August when it said it had been hit by a sophisticated scam perpetrated by suppliers and complicit employees. The fraud which involved valuable scrap raw materials followed on from a smaller theft discovered a few months earlier, and raised uncomfortable questions about the companys security controls. Harings and other executives have also faced scrutiny following the death of three workers after a nitrogen leak at its Hamburg plant. The CEO said in October that it had overhauled its processes to ensure that it would be difficult if not impossible for such a fraud to occur again. Read More: Aurubis Says Criminals Have New Abilities to Target Metals World Story continues Harings joined Aurubis in 2019 after the company terminated the contract of its former CEO Juergen Schachler due to cost over-runs at a major new smelting project. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,941,542 |
2024-01-22 16:39:02+00:00
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{"Bitcoin": [2200, 2242]}
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'Rich Dad, Poor Dad's' Robert Kiyosaki Says He's $1.2 Billion In Debt Because 'If I Go Bust, The Bank Goes Bust. Not My Problem'
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https://finance.yahoo.com/news/rich-dad-poor-dads-robert-193714809.html
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Benzinga
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http://www.benzinga.com/
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Robert Kiyosaki , a best-selling author and seasoned investor, has a distinct philosophy on debt and investment. In a Nov. 30 Instagram reel , Kiyosaki elaborated on his debt philosophy, highlighting a critical distinction between assets and liabilities. He said many people use debt to buy liabilities, while he uses debt to purchase assets. To illustrate his approach, Kiyosaki said his luxury vehicles, like a Ferrari and a Rolls Royce, are fully paid off, categorizing them as liabilities rather than assets. In the reel, Kiyosaki also expressed skepticism toward saving cash, referencing the U.S. dollar’s detachment from the gold standard in 1971 under President Richard Nixon. Instead of saving cash, he saves gold and converts his earnings into silver and gold. This strategy, according to Kiyosaki, has led to an accumulation $1.2 billion in debt, an amount he admits to. He says he is in debt because “if I go bust, the bank goes bust. Not my problem.” Don't Miss: Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here are 3 high-yield investments to add significant income to your portfolio . Passive income investments are one of the most trusted methods for riding out a recession, so it's no surprise that people are turning to high-yield real estate notes that pay a fixed 7.5% to 9%. His approach involves using debt strategically to enhance wealth. Kiyosaki categorizes debt into good debt and bad debt, with good debt being that which helps build wealth, such as loans used for acquiring income-generating assets like real estate, businesses or investments. He advocates using debt as leverage in investments, particularly in real estate, seeing it as an effective way to ride market fluctuations and capitalize on opportunities. Story continues Kiyosaki’s investment strategy is multifaceted. He is known for his stance against fiat money, labeling it in derogatory terms and instead advocating for investment in what he calls “real assets” like Bitcoin, silver, gold and Wagyu cattle. Bitcoin, in particular, is a favorite of his, perceived as a hedge against the deteriorating value of the U.S. dollar. Kiyosaki views gold, another key component of his portfolio, as more stable and reliable than cash, which he calls “trash" because he just doesn't "trust the frickin' dollar." He has expressed a willingness to increase his gold holdings even if prices drop significantly. Silver, too, forms a significant part of his investment strategy. He views it as a long-term investment, particularly because of its increasing rarity and relatively lower price compared to gold. Real estate remains a cornerstone of his investments, valued for its dual benefits of rental income and capital appreciation. His investment in Wagyu cattle, a less conventional asset, reflects his belief in diversifying his portfolio beyond traditional investments. Kiyosaki’s approach to debt and investment is rooted in a broader perspective on finance and wealth. He views money as a form of debt or obligation, a tool that can be used for acquiring assets and generating wealth. His philosophy emphasizes education in finance, suggesting that people should be well-informed about financial matters. While Kiyosaki's methods have been successful for him, they come with risks, as illustrated by his past financial troubles, including filing for bankruptcy in 2012 after a legal dispute over royalties. Read Next: Elon Musk has reportedly bought 6,000 acres of land just outside of Austin. Here’s how to invest in the city’s growth before he floods it with new tech workers. Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Jeff Bezos gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started. "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'Rich Dad, Poor Dad's' Robert Kiyosaki Says He's $1.2 Billion In Debt Because 'If I Go Bust, The Bank Goes Bust. Not My Problem' originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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1,705,942,643 |
2024-01-22 16:57:23+00:00
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{"Bitcoin": [3431]}
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{}
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Buy-Side Spending on Equity Trading and Research Hits Decade Low
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https://finance.yahoo.com/news/buy-side-spending-equity-trading-165723429.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Even with stocks sinking and rebounding in a two-year round trip, Wall Street brokers are still battling to rake in revenue helping their institutional clients navigate market volatility. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Boeing Faces More Pressure as United CEO Vents Frustrations Buy-side spending payments for trade execution and research dropped 11% from a year earlier to $5.9 billion in the 12 months through the early part of the second quarter of 2023, according to an estimate by Coalition Greenwich. That marked a second straight year of double-digit declines and the lowest haul in the firm’s data history since 2011. Chalk it up to lower commissions and the rise of cheap electronic trading. With the proliferation of financial technology and easy access to business intelligence, sell-side brokers have raced to reduce fees and woo clients. Since 2011, their revenues from trading and research have shrunk in all but two years, with the total almost cut in half over the stretch. That’s not good news for an industry contending with higher costs in everything from staying in compliance with regulations to building network connectivity, according to Jesse Forster, a senior analyst of market structure & technology at Coalition Greenwich. “Brokers no longer really have that pricing power that they used to,” he said by phone. “The overall cost of doing business is generally going up while their revenues are going down and they’re getting squeezed on both sides.” Costs have been a major focus across the major US banks, with persistent inflation putting pressure on spending. With commissions coming down, brokers serving buy-side clients face the challenge of providing a steady service without spending so much that it outpaces revenue. Story continues For buy-side traders, the most pressing issue is efficiently finding the other side of a trade, according to a fresh study by Bloomberg Intelligence’s market structure analysts Larry Tabb and Jackson Gutenplan. Meeting such liquidity demand “requires technology, connectivity, data and the staff and analytics to assess a desk’s effectiveness,” they wrote. Read more: Traders’ Job No. 1 Is Liquidity, But Worries About SEC Linger Trading across Wall Street has become leaner and faster over time thanks to the introduction of algorithms, technology and machine learning. Electronic trading continues to rise, cutting costs and the need to rely solely on humans to execute a stock order. The firms with bigger pocket books are more likely to trade via electronic means, according to Coalition Greenwich. “Unlike lower commission-paying firms that may struggle to pay brokers for research and other services, higher-paying firms are better able to trade electronically at lower rates,” Forster wrote in the report. Nevertheless, skilled traders are still in demand for larger or more complex orders, where human intervention is sometimes necessary to source liquidity, he said. The Coalition Greenwich analysis was based on interviews with 235 buy-side equity traders during the first half of 2023. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,943,003 |
2024-01-22 17:03:23+00:00
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{"Bitcoin": [578, 647, 821, 950, 1210, 1265, 1330, 1602]}
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{"Bitcoin": [51]}
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Crypto Funds Saw Outflows Last Week After Debut of Bitcoin ETFs
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https://finance.yahoo.com/news/crypto-funds-saw-outflows-last-170323929.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Global demand for cryptocurrency investment products eased last week, with funds seeing $21 million in outflows, according to a report from CoinShares. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Boeing Faces More Pressure as United CEO Vents Frustrations In the prior week, crypto funds saw $1.25 billion in inflows after the launch of 10 spot Bitcoin exchange-traded funds in the US. Grayscale Investment’s spot Bitcoin exchange-traded fund (GBTC) drove the decline in the most recent week, with $2.2 billion in withdrawals. The US Securities and Exchange Commission’s approval of spot Bitcoin ETFs on Jan. 10 launched nine new funds onto the market. GBTC was converted from a trust. Since the launch, newly issued Bitcoin ETFs have seen $4.1 billion in inflows. BlackRock Inc. and Fidelity Investments have led the charge, with their IBIT and FBTC funds capturing about two-thirds of all inflows since the nine new funds launched, data compiled by Bloomberg show. ProShares Bitcoin Strategy ETF (BITO), the leading futures-based Bitcoin ETF, also saw $94 million in net outflows since the spot Bitcoin ETFs launched earlier this month, data compiled by Bloomberg show. Shares of BITO have declined to 19.57, the lowest level since early December. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,943,268 |
2024-01-22 17:07:48+00:00
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{"Bitcoin": [3570]}
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{}
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Milei Suspends Plan to Privatize Argentina State Oil Company YPF
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https://finance.yahoo.com/news/argentine-oil-company-ypf-privatization-150959464.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- The privatization of state-run oil company YPF SA is no longer included in sweeping reforms that President Javier Milei is trying to get approved by Argentinas congress, according to a summary of the legislation circulated by the government Monday. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Boeing Faces More Pressure as United CEO Vents Frustrations The so-called omnibus bill, currently up for debate in the lower house, was changed after negotiations with lawmakers. Its the clearest sign yet that libertarian hard-liner Milei, whose party has only a minority in congress, is willing to make concessions in order to push through a radical reform package that would shred the fabric of Argentinas interventionist economy to build a free-market haven. YPF is Argentinas biggest oil driller and refiner. It was nationalized in 2012 to spearhead development of shale riches in Patagonia after Spanish owners were accused of neglecting production. And while YPF has found some success there shale oil now makes up nearly half of the countrys crude output of 760,000 barrels a day it has been hobbled by government meddling in fuel prices to contain runaway inflation. Its New York-listed shares have fallen almost 30% since the nationalization. But some investors had recently been buying up YPF securities in the hope Milei would see through a re-privatization that could, in theory, make the company more efficient and profitable. Paula La Greca, an analyst at TPCG in Buenos Aires, said privatization was always unlikely to happen. Thats because by keeping YPF under state control the government has a guaranteed tool for improving Argentinas energy trade balance, which in turn helps budget and monetary goals. YPF was conceived as a company to ensure energy independence was a part of national security, La Greca said. Story continues YPFs American depositary receipts were up by about 1% at midday in New York after falling sharply before the start of regular trading. To be sure, Milei whod originally said he wanted to get YPF in good order before pursuing a sale midway through his term could still revive the plans. However, it would be a challenge to secure the required two-thirds approval in congress. Complicating matters is a US court ruling ordering Argentina to pay some $16 billion after it botched technical steps during the 2012 nationalization. Since the government failed earlier this month to pledge equity in YPF as a guarantee to investors during an ongoing appeals process, a Manhattan judge has given those investors the green light to collect the judgment by going after Argentinas assets. Milei will still seek to privatize tens of other state companies as he moves to shrink a bloated government. But the revised version of the omnibus legislation also pares back plans for the state-run nuclear operator, a satellite company and Banco Nacion. The president also made concessions on how pensions should be calculated. Resistance to his reforms out of congress includes a general strike planned this week by powerful trade unions. (Updates with context throughout. A previous version of this story corrected headline and first paragraph to say stocks fell, not bonds.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,943,802 |
2024-01-22 17:16:42+00:00
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{"Bitcoin": [89, 994, 1020, 1051]}
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{}
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FTX sold about $1 bln of Grayscale's bitcoin ETF since its approval - CoinDesk
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https://finance.yahoo.com/news/ftx-sold-1-bln-grayscales-171642776.html
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Reuters
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http://www.reuters.com/
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Jan 22 (Reuters) - FTX has sold 22 million shares worth close to $1 billion in Grayscale Bitcoin Trust (GBTC) since it was converted into an exchange-traded fund (ETF) earlier this month, taking FTX's GBTC ownership down to zero, CoinDesk reported on Monday. GBTC in all saw outflows of more than $2 billion since being converted into ETF, according to the report, which cited private data reviewed by CoinDesk and two people familiar with the matter. "Large capital markets ETFs are used in a variety of investing strategies, and we anticipate GBTC's diverse shareholder base will continue to deploy strategies that impact inflows and outflows," a Grayscale spokesperson said in an emailed statement to Reuters. Grayscale was approved to convert its existing bitcoin trust into an ETF, creating the world's largest bitcoin ETF with more than $28.6 billion in assets under management. The U.S. Securities and Exchange Commission has approved 11 spot bitcoin ETFs, including BlackRock's iShares Bitcoin Trust , Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF, after a decade-long tussle with the digital asset industry. The approval marked a watershed moment boosting the legitimacy of the cryptocurrency industry and pushing bitcoin further into the mainstream. (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shilpi Majumdar)
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1,705,943,929 |
2024-01-22 17:18:49+00:00
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{"Bitcoin": [82, 987, 1012, 1043]}
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{}
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FTX sold about $1 billion of Grayscale's bitcoin ETF since its approval - CoinDesk
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https://finance.yahoo.com/news/ftx-sold-1-billion-grayscales-171849142.html
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Reuters
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http://www.reuters.com/
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(Reuters) - FTX has sold 22 million shares worth close to $1 billion in Grayscale Bitcoin Trust (GBTC) since it was converted into an exchange-traded fund (ETF) earlier this month, taking FTX's GBTC ownership down to zero, CoinDesk reported on Monday. GBTC in all saw outflows of more than $2 billion since being converted into ETF, according to the report, which cited private data reviewed by CoinDesk and two people familiar with the matter. "Large capital markets ETFs are used in a variety of investing strategies, and we anticipate GBTC's diverse shareholder base will continue to deploy strategies that impact inflows and outflows," a Grayscale spokesperson said in an emailed statement to Reuters. Grayscale was approved to convert its existing bitcoin trust into an ETF, creating the world's largest bitcoin ETF with more than $28.6 billion in assets under management. The U.S. Securities and Exchange Commission has approved 11 spot bitcoin ETFs, including BlackRock's iShares Bitcoin Trust, Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF, after a decade-long tussle with the digital asset industry. The approval marked a watershed moment boosting the legitimacy of the cryptocurrency industry and pushing bitcoin further into the mainstream. (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shilpi Majumdar)
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1,705,943,929 |
2024-01-22 17:18:49+00:00
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{"Bitcoin": [82, 987, 1012, 1043]}
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{}
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FTX sold about $1 billion of Grayscale's bitcoin ETF since its approval - CoinDesk
|
https://finance.yahoo.com/news/ftx-sold-1-billion-grayscales-171849037.html
|
Reuters
|
https://www.reuters.com/
|
(Reuters) - FTX has sold 22 million shares worth close to $1 billion in Grayscale Bitcoin Trust (GBTC) since it was converted into an exchange-traded fund (ETF) earlier this month, taking FTX's GBTC ownership down to zero, CoinDesk reported on Monday. GBTC in all saw outflows of more than $2 billion since being converted into ETF, according to the report, which cited private data reviewed by CoinDesk and two people familiar with the matter. "Large capital markets ETFs are used in a variety of investing strategies, and we anticipate GBTC's diverse shareholder base will continue to deploy strategies that impact inflows and outflows," a Grayscale spokesperson said in an emailed statement to Reuters. Grayscale was approved to convert its existing bitcoin trust into an ETF, creating the world's largest bitcoin ETF with more than $28.6 billion in assets under management. The U.S. Securities and Exchange Commission has approved 11 spot bitcoin ETFs, including BlackRock's iShares Bitcoin Trust, Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF, after a decade-long tussle with the digital asset industry. The approval marked a watershed moment boosting the legitimacy of the cryptocurrency industry and pushing bitcoin further into the mainstream. (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shilpi Majumdar)
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1,705,947,377 |
2024-01-22 18:16:17+00:00
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{"Bitcoin": [523, 1181]}
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{}
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UPDATE 2-FTX-tied Alameda Research drops lawsuit against Grayscale
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https://finance.yahoo.com/news/1-ftx-tied-alameda-research-150929170.html
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Reuters
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http://www.reuters.com/
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(Adds DCG response in paragraph 5) Jan 22 (Reuters) - Bankrupt cryptocurrency exchange FTX's affiliate Alameda Research has dropped a lawsuit against Grayscale Investments that had accused the digital asset manager of "enriching itself at shareholders' expense", a court filing showed on Monday. Alameda, which filed the lawsuit in a Delaware court in March last year, had also accused Grayscale of charging high fees and refusing to allow investors to redeem their shares from its two crypto-focused trusts, the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust. Grayscale CEO Michael Sonnenshein was named in the lawsuit along with parent company Digital Currency Group (DCG) and its CEO, Barry Silbert. Monday's court filing showed that accusations against all parties in the lawsuit were dismissed. "Alameda's voluntary dismissal underscores Grayscale's position that this legal action was entirely without merit," a Grayscale spokesperson said. DCG said it had "no comment" on the matter. GBTC began trading as an exchange-traded fund earlier in the month on NYSE Arca after the U.S. Securities and Exchange Commission approved to convert its existing Grayscale Bitcoin Trust into an ETF. Since it went bankrupt in Nov. 2022, FTX has been trying to recover assets to repay its creditors. (Reporting by Pritam Biswas in Bengaluru; Editing by Anil D'Silva) View comments
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1,705,947,436 |
2024-01-22 18:17:16+00:00
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{"Bitcoin": [2130]}
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{}
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UK Puts Up an Extra £1.3 Billion to Build Sizewell C Reactor
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https://finance.yahoo.com/news/uk-invest-extra-1-3-172311428.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- The UK government will invest an additional £1.3 billion ($1.7 billion) to build the Sizewell C nuclear plant to try and entice private investors to back the project. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Boeing Faces More Pressure as United CEO Vents Frustrations The government will be the majority shareholder in Sizewell and is hoping to attract enough capital to make a final investment decision this year. The extra cash follows a £700 million funding pledge in November 2022 and a further £511 million agreed last summer, according to a statement on Monday. An investment process is ongoing for the 3.2-gigawatt nuclear power plant that’s being built by Electricite de France SA, a project vital for the UK in proving it can deliver on its strategy to quadruple nuclear-power capacity by 2050. But atomic plant construction is notoriously tricky, typically plagued by cost overruns and delays that make investors wary. The government support is meant to help lower the risk. Nuclear energy is a key part of the UK’s net zero plan and Sizewell could provide 7% of the nation’s electricity needs, as well as providing back-up electricity to offshore wind that also needs to be built out at record pace. But getting projects off the ground is proving difficult. EDF’s current UK project, Hinkley Point C, won’t start its reactors until 2027 at the earliest after a series of delays. Earlier this month, Britain committed to building another large-scale nuclear power plant after Sizewell C. After that, the government says it will reach a final investment decision on two more nuclear projects by the end of 2029. Those could use small modular reactors or other advanced nuclear technologies. (Adds background on current projects from third paragraph) Story continues Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,947,866 |
2024-01-22 18:24:26+00:00
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{"Bitcoin": [1979]}
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{}
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Nickel Prices Keep Slumping Even as Mines Close
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https://finance.yahoo.com/news/nickel-prices-keep-slumping-even-113333800.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Nickel futures continued to edge lower on the London Metal Exchange, despite a slew of announcements by companies cutting production in response to a collapse in prices. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Boeing Faces More Pressure as United CEO Vents Frustrations The metal used in stainless steel and electric-vehicle batteries is down more than 40% from a year ago amid a growing global glut. The market has been flooded with a wave of new material from top producer Indonesia at a time when demand growth has faded. The impact on the mining industry has been brutal. On Monday, billionaire Andrew Forrest’s nickel producer Wyloo Metals Pty Ltd. said it’s shutting down mines. BHP Group and First Quantum Minerals Ltd. are also being hit, while a raft of smaller producers have been forced to halt construction or fall into administration. Nickel Price Crash Seen Extending Indonesia’s Grip on Supply “The pressures in the global nickel market are becoming increasingly apparent,” said Colin Hamilton, managing director for commodities research at BMO Capital Markets Ltd. “We have noted that further temporary or permanent capacity cuts were required to balance the nickel market following last year’s surplus, but it is yet to be seen whether sufficient adjustment has taken place,” he said. Inventories of nickel have surged almost 90% since June on the London Metal Exchange, rebounding from a decade-low level. LME nickel declined 0.2% to close at $16,007 a ton on Monday. Copper was little changed at $8,345.50 a ton on the LME, while most other metals also declined. --With assistance from Maria Clara Cobo. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,947,938 |
2024-01-22 18:25:38+00:00
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{"Bitcoin": [3235]}
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{}
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Lula Unveils $60 Billion Plan to Revitalize Brazilian Industry
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https://finance.yahoo.com/news/lula-unveils-60-billion-plan-182538021.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- President Luiz Inacio Lula da Silva’s government on Monday unveiled plans to invest 300 billion reais ($60 billion) into Brazil’s aging industries, a bid to boost Latin America’s largest economy that sparked fiscal worries among investors. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Boeing Faces More Pressure as United CEO Vents Frustrations The financing is the backbone of a proposal the government dubbed “New Industry Brazil,” a sweeping reindustrialization plan that will provide credit and funding to sectors like health, defense and agribusiness. The vast majority of the funding, about 250 billion reais, will come from Brazil’s national development bank, BNDES. The effort is vital to helping Brazilian industries compete on the global stage, Lula said at an event to tout the plan in Brasilia. “For Brazil to become competitive, it has to finance some of the things it wants to export,” he said. “The international market debate is very competitive. It’s a war.” But investors greeted the reindustrialization push with skepticism of both its design and size. The Brazilian real lost 1.2%, lagging all major world currencies and trading at the weakest intraday level since November, as traders worried about the plan’s fiscal impact. Brazil sovereign bonds also underperformed, with notes due 2045 falling more than 1 cent on the dollar. “The market is very skeptical of large industrial policy programs. This was tried in the past and was a spectacular failure,” said Alberto Ramos, a Latin America analyst at Goldman Sachs Group. “The weakness of the Brazilian real and Brazilian assets in general attest to the market discomfort with these types of policies.” Much like the infrastructure investment package the government rolled out last year, the industry plan is a modeled broadly off of a program Lula leaned on during his previous presidency from 2003 to 2010. This time, it also includes investments into decarbonization and modernization initiatives that reflect the leftist leader’s attempts to foster a green transition of Brazil’s economy. “From here on out, the country will be able to count on permanent investments for neo-industrialization and Brazil’s ecological transition,” BNDES head Aloizio Mercadante said in a statement. The plan’s fiscal risks may deepen the challenge facing Finance Minister Fernando Haddad as he seeks to follow through on pledges to eliminate Brazil’s primary deficit, which excludes interest payments, this year, said Guilherme Foureaux, a portfolio manager at Truxt Investimentos in Rio de Janeiro. Story continues Haddad is set to resume negotiations with congress over revenue measures crucial to his zero-deficit goal next month, when lawmakers come back from recess. “In February, the difficult discussions return to Brazil,” Forneaux said. --With assistance from Bruna Lessa, Giovanna Bellotti Azevedo and Josue Leonel. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,948,174 |
2024-01-22 18:29:34+00:00
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{"Bitcoin": [195]}
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{}
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Stock market today: US futures remain buoyant after S&P hits record high
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https://finance.yahoo.com/news/stock-market-today-us-futures-182934243.html
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Business Insider
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https://www.businessinsider.com/
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US stock futures extend advances in Monday's early trades, after the S&P 500 hit a record high Friday. Southern Company and Paypal led premarket gains among S&P names, while ADM fell almost 10%. Bitcoin and ether declined, while the dollar and oil prices were stable. US stock futures advanced in Monday's early trades, maintaining an upbeat tone after the S&P 500 index hit a fresh record high toward the end of last week. Southern Company, PayPal, Western Digital, and Analog Devices led premarket gains among S&P 500 stocks. Archer-Daniels-Midland led declines after the food processing company put its finance chief on administrative leave amid an internal investigation into some accounting practices. European and Japanese stocks also remained in the green. Chinese markets, however, continued to slide amid heightened investor concerns about the deepening slowdown in the world's second-largest economy. In the crypto market, bitcoin remained on the back foot as some investors took profits following the token's impressive fourth-quarter rally ahead of the Securities and Exchange Commission's approval of bitcoin ETFs that finally came on January 10. Crude oil and the dollar were little changed, while ten-year Treasury bond yields were steady. Market overview: Futures on the S&P 500 index climbed 0.3% to 4,883 points as of 5 a.m. ET, while similar contracts on the Nasdaq 100 gained 0.5% to 17,532. European stocks extended gains, with the Euro Stoxx 50 rising 0.3%. Germany's DAX 40 index and France's CAC 40 rose 0.5% respectively. Trends were more mixed across Asian markets. Hong Kong's Hang Seng index dropped 2.3% and the Shanghai Composite fell 2.7%, but Japan's Nikkei 225 rallied 1.6% to 36,546 and India's Nifty 50 rose 0.8%. In the crypto market, bitcoin slid 1.9% to $40,784, taking losses in January to 3.7%. Ether dipped almost 3% to $2,382. The Dollar Index, which tracks the greenback against a basket of currencies, was stable — albeit slightly off the highest level since mid-December. Ten-year Treasury yields were little changed at 4.12%. Brent crude oil was mostly steady at $78.51 a barrel. Read the original article on Business Insider
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1,705,948,177 |
2024-01-22 18:29:37+00:00
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{"Bitcoin": [3467]}
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{}
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University of California Taps Bond Market for $1.7 Billion
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https://finance.yahoo.com/news/university-california-taps-bond-market-182937711.html
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Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- The University of California will tap the municipal bond market Tuesday as it looks to maximize refunding savings and navigate potential funding deferrals outlined in Governor Gavin Newsom’s budget proposal for the next fiscal year. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Boeing Faces More Pressure as United CEO Vents Frustrations The university is slated to issue roughly $1.7 billion of general revenue bonds to fund capital projects and refund previously issued paper. According to preliminary bond documents, $1.59 billion of the bonds will be tax-exempt and $145 million will be taxable — however the taxable series will be exempt from taxation in the state of California. The 2024 bonds carry an Aa2 rating from Moody’s Investors Service and double-A ratings from Fitch Ratings and S&P Global Ratings. The sale is being managed by Barclays Plc, Bank of America Securities and Jefferies. Investor demand for the bonds is expected to be strong, according to Dan Solender, head of municipal debt at Lord, Abbett & Co. “As long as the University of California deal is priced appropriately, it should get a good response for all its bonds,” Solender said. “Given the California exemption and the strong credit, they should be able to get lower yields than a lot of similarly rated bonds around the country.” Read More: California Lawmakers Eye More Than $100 Billion of Borrowing In May 2022, Newsom and the University of California announced a multiyear compact agreement that includes annual base budget adjustments of 5% for the university in fiscal years 2023-2024 through 2026-2027. The governor’s “approach will enable the UC to continue its efforts to meet the compact goals to expand student access, equity and affordability, and to create pathways to high-demand career opportunities,” the bond documents say. Story continues Funding for the university system increased about 7.9% during the current fiscal year. But in the face of a projected $37.9 billion budget deficit, Newsom proposed deferring a planned $227.8 million compact investment in the UC system to July 1, 2025. “No one likes cuts, but it’s important to keep in mind that state funding is only about 10% of revenues,” said Dora Lee, director of research at Belle Haven Investments. “So when you zoom out and look at the whole budget, the cuts will be manageable.” The University of California declined to comment for this story. Read More: Newsom Pegs Much Smaller California Deficit at $37.9 Billion As the largest US public university system in terms of revenue, applications and enrollment, the University of California also operates six medical schools and three national laboratories. In fiscal 2023, it enrolled 289,696 full-time equivalent undergraduate and graduate students. “We are still in a strong technical environment for municipals with many investors flush with cash to spend and primary supply is just starting to build,” said said Terry Goode, senior portfolio manager at Allspring Global Investments. “Institutional and retail will likely find it attractive based on where existing municipal rates are currently.” Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,949,229 |
2024-01-22 18:47:09+00:00
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{"Bitcoin": [890, 927]}
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{}
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Dogecoin soars to weekly peak amid X Payments buzz
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https://finance.yahoo.com/news/dogecoin-soars-weekly-peak-amid-184709276.html
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Forkast News
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https://forkast.news/
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Dogecoin’s value surged to a weekly high of US$0.09, fueled by speculation around X Payments. X Payments, the expected payment feature of tech mogul Elon Musk’s social media platform X (formerly Twitter), launched its account with a gold verification badge over the weekend, before Dogecoin’s uptick in value. Musk, who is also the chief of Tesla, one of the world’s largest firms with over US$660 billion in market capitalization, has frequently voiced his admiration for the meme-inspired cryptocurrency through his tweets, causing spikes in Dogecoin prices. Musk’s fondness of the memecoin has raised speculation around X Payments’s possible adoption of Dogecoin, potentially facilitating its transition from a niche internet currency to a more widely accepted payment option. Dogecoin founders Billy Markus and Jackson Palmer launched the cryptocurrency in 2013 as a scheme to satirize Bitcoin and cryptocurrencies. Unlike Bitcoin’s limited supply, Dogecoin’s cap is unlimited. Dogecoin’s mining mechanism introduces 10,000 new coins into the economy every minute, making it a highly inflationary token. Dogecoin traded at US$0.083 at the time of writing. View comments
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1,705,950,540 |
2024-01-22 19:09:00+00:00
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{"Bitcoin": [172], "BTC": [40]}
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{"Bitcoin": [0]}
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Bitcoin Bulls Buoyed by Report of FTX's $1B GBTC Sale
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https://finance.yahoo.com/news/bitcoin-bulls-buoyed-report-ftxs-190900213.html
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CoinDesk
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https://www.coindesk.com
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At least partly to blame for bitcoin's [BTC] poor price performance since the Jan. 11 debut of U.S.-based spot ETFs are sizable sales of bitcoin from the mammoth Grayscale Bitcoin Trust (GBTC). According to the Grayscale website, GBTC held roughly 567,000 bitcoin as of Jan. 19, down from just shy of 620,000 prior to Jan. 11 launch. So while the new spot ETFs have gathered more than 94,000 bitcoin and $3.9 billion in assets under management (AUM) since opening for trade (data through Jan. 19), the bears are pointing out that 53,000 of those tokens may just be GBTC holders moving their money into the lower cost vehicles. (GBTC charges a 1.5% management fee, at least 1 percentage point more than nearly all of the new funds.) A CoinDesk story Monday morning , however, reported the bankruptcy estate for failed crypto exchange FTX as having sold the entirety of its 22 million share holding of GBTC (the equivalent of almost 20,000 bitcoin) for nearly $1 billion. The news means a couple of things, both of which on first glance appear bullish. First, more than one-third of the selling of GBTC was due to one non-economic actor. Second, there was nearly $1 billion more of fresh investment into the new spot ETFs than previously thought. "$1 billion of GBTC sales was the FTX estate, which means the inflows we have seen into the new ETFs was not merely recycled funds from GBTC," said Swan Managing Director Steven Lubka , summing the information. For now at least, the sellers of bitcoin continue to have the upper hand, with the price Monday afternoon lower by 2.8% over the past 24 hours to $40,400.
|
1,705,950,707 |
2024-01-22 19:11:47+00:00
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{"Bitcoin": [3094]}
|
{}
|
ADM Places CFO on Leave, Cuts Profit Outlook on Probe
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https://finance.yahoo.com/news/adm-places-cfo-leave-cuts-003128032.html
|
Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Archer-Daniels-Midland Co. placed its chief financial officer on leave and cut its earnings outlook pending an investigation into the agricultural trading giant’s accounting practices. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Boeing Faces More Pressure as United CEO Vents Frustrations CFO Vikram Luthar has been put on administrative leave, effective immediately, and Ismael Roig will serve as interim CFO, the company said in a statement on Sunday. The shares were down as much as 16% in premarket trading on Monday. If the decline holds, the stock will be set for its biggest drop since April 2005, wiping out almost $6 billion of market value. The probe, which is in response to a voluntary document request by the Securities and Exchange Commission, surrounds certain practices and procedures with respect to the company’s nutrition reporting segment, ADM said. It is cooperating with the SEC. ADM has spent billions expanding its nutrition business since 2014, when it made its biggest-ever acquisition — the $3 billion buyout of European natural ingredient maker Wild Flavors — in a bid to diversify into value-added products. Profits have failed to live up to initial expectations, however, due to weakening demand, including for plant-based food. The segment’s operating income is forecast to drop more than 18% in 2023 to the lowest since 2020, according to analyst estimates compiled by Bloomberg. In November, ADM chose long-time executive Ian Pinner to lead the embattled business. The Chicago-based company — one of the world’s biggest agricultural traders — is withdrawing its outlook for the nutrition unit and expects to delay its fourth-quarter and full-year earnings release, it said. ADM expects to deliver above $6.90 in adjusted earnings per share for the year ended Dec. 31, after having predicted in October full-year profits in excess of $7. Story continues Read More: Crop Trader ADM Slumps After Deal to Grow Nutrition Business This isn’t the first scandal involving ADM. Back in the 1990s, it was implicated in a price-fixing conspiracy that later became the basis of the 2009 film The Informant!, starring Matt Damon. ADM pleaded guilty to the price-fixing charges in 1996. The company is also responding to a lawsuit over allegations of price manipulation involving its trading of ethanol. “The board takes these matters very seriously,” Terry Crews, lead director at ADM, said in the statement. “The board will continue to work in close coordination with ADM’s advisers to identify the best path forward and ensure ADM’s processes align with financial governance best practices.” --With assistance from Subrat Patnaik and Matt Turner. (Corrects penultimate paragraph to remove innacurate lawsuit reference.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,951,714 |
2024-01-22 19:28:34+00:00
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{"Bitcoin": [2890]}
|
{}
|
Florida to Borrow Billions to Backstop Insurers After Hurricanes
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https://finance.yahoo.com/news/florida-borrow-billions-backstop-insurers-192834261.html
|
Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Florida is planning to borrow as much as $3.8 billion to infuse a state fund that reimburses property insurers for losses when homes are damaged or destroyed by hurricanes. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom China Weighs Stock Market Rescue Package Backed by $278 Billion Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout The Florida State Board of Administration Finance Corporation expects to sell at least $1.5 billion of municipal bonds to raise money for the Florida Hurricane Catastrophe Fund, according to a securities filing dated Jan. 19. It marks the state’s latest effort to ensure that it can backstop its increasingly fragile insurance industry, which has been grappling with a surge of claims and lawsuits in recent years. In June, the Florida Insurance Guaranty Association, which handles the claims of insolvent insurers, sold debt for the first time in three decades to help support insurance claims. The state agency faced higher costs after Hurricane Ian in 2022 and a deluge of lawsuits forced property insurers to close. The latest bond sale wasn’t prompted by a specific hurricane. Proceeds will replenish funds from debt issued in 2020 that will mature in 2025, and give the fund “additional capital at an established interest rate and the ability to access funds quickly in the event of a significant storm event,” said Gina Wilson, chief operating officer of the Florida Hurricane Catastrophe Fund, in an emailed statement. “This is a want to have, not a need to have,” Ben Watkins, Florida’s director of bond finance, said, adding that the debt sale would not require any assessment on member insurers. Four years ago, corporation borrowed over $2 billion for the catastrophe fund to take advantage of low interest rates. The fund’s net position fell $8.2 billion for the fiscal year ended June 30, 2023, according to a report. Since Hurricane Ian in 2022, the fund paid $1.9 billion in reimbursements to insurers for that period, and estimates, based on current reporting by insurers, an additional $8.1 billion in reimbursements will be paid through 2028, the report said. The fund is also still making payments for Hurricanes Irma and Michael, which hit the state in 2017 and 2018, respectively. Story continues Morgan Stanley will act as lead underwriter for the latest bond sale, which is scheduled to price as soon as March, according to the filing. Fitch Ratings Inc. affirmed its AA rating for $3.5 billion of the corporation’s outstanding revenue bonds in July, citing its ability to access emergency assessments and a growing assessable base. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,952,594 |
2024-01-22 19:43:14+00:00
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{"Bitcoin": [11, 367, 545]}
|
{"Bitcoin": [0]}
|
Bitcoin falls to $40,000, lowest level since bitcoin ETF launch
|
https://finance.yahoo.com/news/bitcoin-falls-seven-week-low-194314879.html
|
Reuters
|
http://www.reuters.com/
|
(Reuters) -Bitcoin fell to a seven-week low on Monday, hovering below $40,000 for the first time since the launch of 11 spot bitcoin exchange-traded funds on Jan. 11. The world's largest cryptocurrency was last down 3.98% at $39,938.00, trading at its lowest since Dec. 4 after a brief recovery. Ether, the second largest cryptocurrency, was down 6.37% at $2,328.30. Bitcoin had rallied on growing excitement the U.S. Securities and Exchange Commission (SEC) would approve bitcoin ETFs, opening up the cryptocurrency to a slew of new investors. Bitcoin gained around 70% from August, when a federal court forced the SEC to review its decision to reject Grayscale Investment's bitcoin ETF application. Some analysts said they had expected bitcoin to initially pare some of those gains. Other market-watchers said on Monday the cryptocurrency was having trouble competing with traditional stocks after the S&P 500 benchmark index notched fresh record highs on Monday driven by semiconductor and other tech stocks. "It feels like bitcoin investors are running up a descending escalator right now as traditional financial benchmarks enjoy the easier ride to record highs," said Antoni Trenchev, co-founder of crypto lender Nexo. He noted previous major crypto events, including the initial public offering of crypto exchange Coinbase and the launch of bitcoin futures, were followed by similar bitcoin slumps. Trenchev said bitcoin was also pressured by outflows from Grayscale Investment's bitcoin trust, which was converted into an ETF when the SEC approved the other bitcoin ETF products earlier this month. CoinDesk reported on Monday that FTX, which entered bankruptcy in 2022, has sold 22 million shares worth close to $1 billion in the ETF. "Spot bitcoin ETFs are in danger of joining the ... crypto hall of infamy," Trenchev said. (Reporting by Alden Bentley, Michelle Price and Hannah Lang;Editing by Chris Reese, Nick Zieminski and Richard Chang)
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1,705,953,000 |
2024-01-22 19:50:00+00:00
|
{"Bitcoin": [15, 832, 1015, 1242, 2086, 2735], "BTC": [1107]}
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{"Bitcoin": [0]}
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Bitcoin Falls Below $40,000 for the First Time Since December
|
https://finance.yahoo.com/news/bitcoin-slips-back-toward-40-123439338.html
|
Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Bitcoin fell below $40,000 for the first time since early December as enthusiasm over the launch of exchange traded funds that directly invest in the largest cryptocurrency ebbs. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom China Weighs Stock Market Rescue Package Backed by $278 Billion Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout The digital currency token fell as much as 5.3% to $39556 as of 2:42 pm in New York on Monday. Thats the lowest since Dec. 4. Smaller tokens like Ether and Solana were down 6.7% and 9.3% respectively. Digital tokens have mostly been on a downward trajectory so far this year after an intense bull-run which saw Bitcoin rising by nearly 160% in 2023, outpacing gold and stocks. Much of that rally was attributed to anticipation of the Securities and Exchange Commission approving launch of spot Bitcoin ETFs in the US. It did so on Jan. 10, allowing almost a dozen issuers to offer spot BTC ETFs. Markets started giving up some of the gains after the SECs decision as a sell-the-news trade. Read more: What Are These New Bitcoin ETFs and How Do They Work?: QuickTake The declines were in stark contrast to positive performance elsewhere, with global equities advancing on Monday. Europes STOXX index rose 0.7% while Nasdaq 100 up 0.2%, as investors remained optimistic about the US economys resilience ahead of fourth-quarter GDP data on Thursday. We are seeing weakness across all digital assets, as new ETF inflows have so far failed to offset profit-taking by speculative traders on positions put on prior to the announcement, said Caroline Mauron, chef executive of digital-asset derivatives liquidity provider Orbit Markets. While $40,000 might be an important psychological level, we dont expect a break through to trigger a cascade of liquidation here, and see the next support level around $38,000. Story continues The first week of trading for spot Bitcoin ETFs in the US saw about $6.5 billion in shares change hands, according to a Bloomberg Intelligence note on Friday, much higher than recorded in ETFs pegged to traditional assets. Market sentiment has slowed down after the ETF listings for certain, and the use of leverage continues to trend lower indicating cautious positions being opened by traders, Fadi Aboualfa, head of research at Copper Technologies Ltd., said in an email. Things are shaping up to be very interesting. --With assistance from Suvashree Ghosh. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,953,914 |
2024-01-22 20:05:14+00:00
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{"Bitcoin": [5080]}
|
{}
|
Exxon Sues ESG Investors to Stop Climate Proposals on Ballot
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https://finance.yahoo.com/news/exxon-sues-esg-investors-stop-232554126.html
|
Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- Exxon Mobil Corp. filed a lawsuit against US and Dutch climate activist investors in an effort to remove what it describes as their “extreme agenda” from the ballot at its annual shareholder meetings. Most Read from Bloomberg Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump China Weighs Stock Market Rescue Package Backed by $278 Billion Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout The Texas oil giant is seeking a declaratory judgment from the US District Court in Fort Worth to exclude from its annual meeting this year a proposal to accelerate greenhouse-gas emission cuts submitted by Arjuna Capital LLC and the Amsterdam-based non-profit group Follow This. Exxon argues that a judgment in its favor would tighten the Securities and Exchange Commission’s interpretation of the rules around what proposals get on proxy ballots across corporate America. Publicly traded companies typically debate the merits of individual proposals with the SEC, which can advise whether they be excluded from the ballot. But critics of the process, including Exxon, claim the SEC’s advice can vary widely depending which administration is in office. The number of environmental and social proposals voted on has more than doubled over the past two proxy seasons, according to the SEC. Follow This and Arjuna Capital have “become shareholders solely to campaign for change through shareholder proposals that are calculated to diminish the company’s existing business,” Exxon said in the complaint. They “are aided in their efforts by a flawed shareholder proposal and proxy voting process that does not serve investors’ interests and has become ripe for abuse.” Exxon’s decision to seek legal judgment rather than go through the SEC is highly unusual and marks an aggressive pushback against climate activists who use shareholder voting to influence boardroom strategy. It also comes as the US Supreme Court questions a longstanding legal doctrine known as the “Chevron doctrine” that gives federal agencies wide latitude to interpret unclear mandates from Congress. Story continues Read More: Supreme Court Weighs Toppling Ruling That Empowers Agencies The lawsuit is a “remarkable step,” Follow This founder Mark van Baal said in a statement. “ExxonMobil clearly wants to prevent shareholders using their rights. Apparently, the board fears shareholders will vote in favor of emissions reductions targets,” he said. Arjuna has “a fundamental right and duty to voice concern over climate risk,” said Natasha Lamb, the firm’s chief investment officer. Last month, Follow This and Arjuna submitted a proposal calling for a “further accelerating” of Exxon’s emission reduction plans that include Scope 3 emissions, in other words the pollution from customers burning the company’s oil and gas. Chief Executive Officer Darren Woods is a vocal critic of Scope 3 emissions accounting, saying it’s misleading and doesn’t capture overall emission-reduction efforts. A similar proposal last year gained just over 10% of shareholder support, down from 27% in 2022. “The 2024 Proposal does not seek to improve ExxonMobil’s economic performance or create shareholder value,” the company said in the complaint. “Like the previous proposals, it is designed instead to serve Arjuna’s and Follow This’s agenda to “shrink” the very company in which they are investing.” Exxon is seeking to have the proposal excluded on two counts: that it interferes with the ordinary course of business, and that shareholders have rejected similar proposals multiple times. Exxon was one of the highest profile targets of the ESG movement, losing a proxy battle against first-time activist Engine No. 1 in 2021, which forced it to replace a quarter of its board with new directors. Engine No. 1 isn’t named in the complaint. Exxon isn’t seeking monetary relief from the activist investors. Proposals by Amsterdam-based non-profit Follow This and Massachusetts-based Arjuna Capital have become a fixture on the ballots of Big Oil’s annual meetings, mostly encouraging oil majors to set greenhouse gas emission targets that align with the Paris Agreement. While most proposals have been rejected, support steadily rose from 2015 through 2021 before dropping more recently. Since the investors began their campaigns nearly a decade ago, all five Western oil majors have set ambitious emissions targets for 2050, with Shell Pfc and BP Plc taking heed of activists’ recommendations to reduce customers’ emissions. Exxon has an ambition to become net zero by 2050 for Scope 1 and Scope 2 emissions, in other words the pollution from its production processes and the energy it consumes. But the company has rejected all targets associated with pollution caused by the use of its oil and gas. (Updates with Arjuna Capital’s comment in seventh paragraph.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,955,108 |
2024-01-22 20:25:08+00:00
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{"Bitcoin": [2218]}
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{}
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Key Oil-Market Gauge Rallies as Russian Crude Exports Threatened
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https://finance.yahoo.com/news/oil-edges-lower-libya-restarts-235936559.html
|
Bloomberg
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https://www.bloomberg.com/
|
(Bloomberg) -- A key oil-market gauge is signaling a stronger underlying physical market as Ukrainian drone strikes threaten Russian oil exports. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Global benchmark Brent crude’s front-month futures are trading at a 46-cent premium to the next contract, near the highest since November, excluding expiration days. That measure, known as the prompt spread, is a critical barometer for supply and demand and has been bolstered by rising geopolitical risks even as front-month prices remain rangebound. Drone attacks shut down a Novatek PJSC gas-condensate terminal on the Baltic coast, near a major oil-export terminal, threatening the flow of Russian crude into the market. West Texas Intermediate futures rose 2.4% while Brent advanced 1.9% on Monday. Still, oil is facing some resistance after Libya’s National Oil Corp. said flows from the Sharara field — which previously pumped about 270,000 barrels a day — would resume after a three-week stoppage. Elsewhere in the Middle East, traders are expecting prolonged disruption to shipping in the Red Sea and Suez Canal as the US attempts to prevent Iran-backed Houthi rebels in Yemen from attacking vessels. Military action to deter the assaults will take time, according to a Biden administration official, Jon Finer, who hinted Washington could take extra measures in the coming days. Read More: Baltic Drone Attacks Puts Russia’s Key Oil-Export Route at Risk Crude has struggled for direction this year, rising and falling on alternate weeks. That seesaw pattern has developed as the impact of tensions across the Middle East, including the Israel-Hamas war in the Gaza Strip, is balanced by expectations that oil markets will remain amply supplied. To get Bloomberg’s Energy Daily newsletter into your inbox, click here. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments
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1,705,955,370 |
2024-01-22 20:29:30+00:00
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{"Bitcoin": [3443]}
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{}
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GLOBAL MARKETS-Global stock index gains while US Treasury yields fall
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https://finance.yahoo.com/news/global-markets-global-stock-index-202930221.html
|
Reuters
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http://www.reuters.com/
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* U.S., European stocks rise after Chinese stocks sink * PBOC skips rate cut, BOJ, ECB and BOC seen on hold * U.S. Treasury yields fall, dollar barely gains (Updates prices at 02:38 pm ET/ 1938 GMT) By Sinéad Carew NEW YORK Jan 22 (Reuters) - MSCI's global equities index rose on Monday as Wall Street continued to feed on momentum that took it to a new record high last week, while the U.S. dollar index edged up slightly. U.S. Treasury yields fell as investors took advantage of a recent decline in bond prices to enter the market ahead of economic indicators due out later this week that may give new information on the direction of interest rates. The benchmark S&P 500 scaled a fresh record high after closing at a record on Friday for the first time in two years, confirming it was in a bull market. "If anything, what we're seeing is a carry over of the strength from the last couple of trading sessions. That's probably starting to get money in off the sidelines," said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management Company. "There could just be some fear of missing out driving this, with a lot of liquidity still to enter into equity markets. Narratives tend to follow prices in the mind of retail investors. The S&P 500 at an all-time high gives them another data point to say things are getting better faster than what we were thinking." On Monday at 02:38 p.m. the Dow Jones Industrial Average rose 105.96 points, or 0.28%, to 37,969.76, the S&P 500 gained 11.80 points, or 0.24%, to 4,851.61 and the Nasdaq Composite gained 49.26 points, or 0.32%, to 15,360.76. The MSCI world equity index, which tracks shares in 49 nations, gained 0.3%. Europe's STOXX 600 index rose 0.77%. In Treasuries, the yield on benchmark 10-year Treasury notes rose to 4.1033% compared with its U.S. close of 4.146% on Friday. The two-year yield, which rises with traders' expectations of Fed fund rates, touched 4.3783% compared with a U.S. close of 4.408%. Story continues In currencies, the U.S. dollar was little changed to slightly lower against a basket of currencies on Monday ahead of central bank policy decisions in Japan and the euro zone that may determine the currency's direction this year. "Dollar is in a bit of a holding pattern until central banks kick off tomorrow," said Helen Given, FX trader at Monex USA in Washington. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up roughly 0.05%. The dollar dropped 0.07% against Japan's yen to 148.04. The European single currency was down 0.1% on the day at $1.0886, having lost 1.36% in a month. The European Central Bank (ECB) meets on Thursday and is expected to hold monetary policy steady. Central banks in Canada and Norway also meet this week and no changes to rates are expected, though Turkey is thought likely to hike again. Spot gold prices fell 0.45% to $2,020.13 an ounce as investors rolled back expectations of a U.S. interest rate cut at the end of March, with a surge in equity markets further dampening interest in safe-haven bullion. Oil prices rose as traders saw oil supply tightening due to conflicts in the Middle East and Ukraine, and extreme North American cold weather, while a bullish U.S. stock market signalled demand growth ahead. U.S. crude settled up 2.4% at $75.19 a barrel. Brent crude settled up 1.9% at $80.06 per barrel. In crypto currencies, Bitcoin fell to a seven-week low and was down 4.7% at $39,640. In Beijing, the central bank again skipped a rate cut in its market operations on Monday and the Bank of Japan is expected to keep policy super-easy at a meeting on Tuesday. The U.S. Federal Reserve is scheduled to meet again Jan. 30-31. Earlier, China and Hong Kong shares slumped on Monday, as relentless foreign outflows and a surge in short selling pummelled confidence already hurt by the region's creaking economy. China's blue-chip CSI300 Index dropped 1.6% to its lowest closing level in nearly five years while in Hong Kong, the benchmark Hang Seng Index tumbled 2.3% to its lowest level in 14 months. (Reporting by Sinéad Carew, Gertrude Chavez-Dreyfuss, Nell Mackenzie and Wayne Cole; Editing by Jane Merriman, Kirsten Donovan and Susan Fenton)
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1,705,955,546 |
2024-01-22 20:32:26+00:00
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{"Bitcoin": [53, 573, 1213, 1390, 2230, 2344]}
|
{"Bitcoin": [0]}
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Bitcoin-Based Digital Art Image 'Genesis Cat' Sells for $254K in Sotheby's Auction
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https://finance.yahoo.com/news/bitcoin-based-digital-art-image-203226593.html
|
CoinDesk
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https://www.coindesk.com
|
" Genesis Cat ," a digital art image minted atop the Bitcoin blockchain's Ordinals protocol by the Taproot Wizards team, has sold for $254,000 in a Sotheby's auction. The image was a special edition 1-of-1 piece by the Taproot Wizards artist Francisco "FAR" Alarcon, featured as part of a broader sale of Ordinals inscriptions by Sotheby's. The auction started on Jan. 12 and concluded on Monday. The sale price for Genesis Cat was more than 12 times the estimated $15,000 to $20,000 for the lot, and comes after Sotheby's last month sold three pixelated images from the " BitcoinShrooms " collection for a combined $450,000. The cat image was sold as part of the " Ordinals Curated Sale ," consisting of 19 lots from 11 different artists. Collectively they raked in about $1.1 million, Sotheby's spokesman Derek Parsons told CoinDesk in an email. Lot 17 from the Sotheby's auction, " Black Rare Sat 20,159,999,999,999 ," pulled in $165,100, according to Parsons, which he said he understood was a record for a so-called " Rare Satoshi ," which are seen as having unique features that make them more highly sought-after. The eye-popping numbers for these Ordinals inscriptions sometimes referred to as "NFTs on Bitcoin" has drawn comparisons to the NFT frenzy that consumed the Ethereum blockchain a few years ago. Transactions related to Ordinals have contributed to congestion on the Bitcoin blockchain while drawing the ire of some purists who would like to see the world's largest blockchain's bandwidth kept clear for financial payments. According to the Sotheby's description of the auction lot for the Genesis Cat image , Alarcon is "an artist and engineer exploring the intersection of visual arts and technology." "His research delves into the material history of computer-generated graphics, examining digital imaging from historical and conceptual perspectives," said Sotheby's. "He investigates computer simulations and visualizations, focusing on their impact on our understanding of the physical world through film, video games, and virtual worlds." Story continues The Genesis Cat piece was the anchor of a series of 3,333 "Quantum Cats" minted by Taproot Wizards, in its first sale since the Ordinals "NFTs on Bitcoin" project raised $7.5 million last year from investors. The Quantum Cats collection is designed to honor a Bitcoin improvement proposal known as OP_CAT, according to a press release from Taproot Wizards. Dan Held, chief marketing officer for Taproot Wizards, told CoinDesk that the price for Genesis Cat is the amount that will be paid back to the project, including the artist, who was a co-founder. The Sotheby's fee is charged on top of the winning bid price, according to Held.
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1,705,955,891 |
2024-01-22 20:38:11+00:00
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{"Bitcoin": [3091]}
|
{}
|
Truist, Fifth Third Add to Bank Bond Spree With $4.5 Billion
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https://finance.yahoo.com/news/truist-fifth-third-add-bank-203811738.html
|
Bloomberg
|
https://www.bloomberg.com/
|
(Bloomberg) -- Truist Financial Corp. and Fifth Third Bancorp tapped the US investment-grade market on Monday, growing the pile of domestic bank debt that has been issued so far this month to $40 billion, as Wall Street firms emerge from fourth-quarter earnings. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout Truist sold $3.5 billion of bonds in two parts, according to a person with knowledge of the matter. The longest portion of the offering, an 11-year fixed-to-floating rate security, yields 162 basis points above comparable Treasuries after initial price discussions of around 190 basis points, said the person, who asked not to be identified as the details are private. Fifth Third was also in the market with a $1 billion eight-year security that yields 155 basis points above comparable Treasuries, after initial price discussions of around 187.5 basis points, according to a person with knowledge of the matter. Truist reported what analysts described as a noisy and super-messy quarter amid a $6.1 billion goodwill impairment, while saying its underlying results were solid and that its guidance for revenue in 2024 appears better than expected. Meanwhile, Fifth Third reported earnings Friday that beat the average analyst estimate. Truist declined to comment while Fifth Third didnt reply to a request for comment. Financial institutions, led by the biggest US banks and regional lenders, have dominated high-grade issuance, making up over 60% of the $149 billion that has priced so far this month. JPMorgan Chase & Co., Wells Fargo & Co., Morgan Stanley and Bank of America Corp. raised a total of $28 billion last week. Regional banks, including PNC Financial Services Group Inc., U.S. Bancorp and Citizens Financial Group Inc. have been active too. Story continues Read More: Bank of America Joins Debt Binge as Weekly Sales Hit $50 Billion Demand for debt has been so insatiable that the so-called new-issue concession the extra yield on a new bond compared to the sellers existing securities has been minimal to negative on recent investment-grade sales. That demand could help keep issuance activity going strong. Syndicate desks are projecting more than $25 billion of new investment-grade bonds this week. Issuance could break the roughly $175 billion January record set in 2017, with banks propelling much of the activity as they face looming maturities and prospects of tougher capital rules. Citigroup Inc. and Goldman Sachs Group Inc., two of the six biggest Wall Street banks, havent yet sold new bonds following earnings reports. --With assistance from Brian Smith and Michael Gambale. (Updates with pricing details in the second and third paragraphs.) Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,956,447 |
2024-01-22 20:47:27+00:00
|
{"Bitcoin": [1440]}
|
{}
|
Soybean Oil Rises With More US Demand Forecast for Biofuels
|
https://finance.yahoo.com/news/china-corn-prices-tumble-three-042452394.html
|
Bloomberg
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https://www.bloomberg.com/
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(Bloomberg) -- Soybean oil prices rose in Chicago amid speculation that a new biofuels plant in California has received the green light to start operating in a few weeks. Most Read from Bloomberg China Weighs Stock Market Rescue Package Backed by $278 Billion Florida Governor DeSantis Drops Out of 2024 Race, Endorses Trump Hong Kong Stocks at 36% Discount Show True Depth of China Gloom Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Never Trumpers Brace for New Hampshire Shutout The Phillips 66 facility in Rodeo, California, has received environmental approval to start operating soon, a Zacks report said. That pushed most-active soybean oil futures up 2.7%, the biggest daily advance since. Dec. 7. The plant a former crude oil refinery will use waste oils, fats, greases and vegetable oils to produce an initial 800 million gallons of renewable fuels per year, including renewable diesel, renewable gasoline and sustainable aviation fuel, according to the company. This is a big project, said Victor Martins, Latin America risk manager at brokerage Amius Ltd., and is an indication of more demand for soy oil in the US. Palm oil and crude oil futures also advanced on Monday. A mix of excessive production in the US and a return of output in Argentina have weighed on prices in recent months. Most Read from Bloomberg Businessweek The Downfall of Diddy Inc. How Sweden Quit Smoking Without Quitting Nicotine The Bitcoin Hype Is Back and About Just as Hollow as Before Japans Market Roars Back to LifeWith Old-Timers Leading the Way ©2024 Bloomberg L.P.
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1,705,956,681 |
2024-01-22 20:51:21+00:00
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{"Bitcoin": [191, 1680, 4435]}
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{}
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Why Ethereum Slumped More Than 6% Today
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https://finance.yahoo.com/news/why-ethereum-slumped-more-6-205121274.html
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Motley Fool
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http://www.fool.com/
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Megacap cryptocurrency Ethereum (CRYPTO: ETH) has continued to sell off in today's session, now having given up most of its gains since the sector-driven mania following the approval of spot Bitcoin ETFs earlier this month. As of 3 p.m. ET, Ethereum declined 6.1% over the past 24 hours, dropping below the $2,350 level. This move appears to be tied to a number of market-driven forces, but also some token-specific headwinds that investors are pricing in today. Here's what's behind today's big downside move in Ethereum. Significant Ethereum selling pressure impacting this token When certain investors sell a given cryptocurrency or stock, investors pay attention. Accordingly, news that the Ethereum Foundation (the nonprofit doing much of the behind-the-scenes work to keep Ethereum up and running) sold more than $1.6 million worth of the world's second-largest cryptocurrency has sent shockwaves reverberating through the market. Recent reports show that this large sale, in which 700 Ether were sold, continues a trend of capital-raising from the Ethereum Foundation. A previous sale of 100 Ether tokens on Jan. 16 from the same wallet suggests that the ongoing development work may be more costly than initially thought, providing some downside selling pressure on this token. Ethereum does have another upgrade on the go, with its so-called Dencun upgrade already underway as of last week. Thus, it's possible that these token sales could dry up as development activity slows, but it's a key factor in the supply/demand equation investors are digesting right now. Additionally, concerns around capital flight from the crypto sector, evidenced by more than $2 billion of Bitcoin ETF outflows, has some concerned about the secondary impacts on Ethereum. So far, the excitement around these exchange-traded products hasn't stoked the kind of investment many initially thought would come. For future Ethereum ETFs, that's not great, and this sector-wide selling pressure will likely continue to flow through to the Ethereum ecosystem as well. Story continues What to make of today's move Occasionally, it's important to reflect on the cost impacts various development initiatives have on various blockchain networks and their associated tokens. Given Ethereum's aggressive upgrade schedule and top-tier talent in terms of the developers working diligently on ensuring this protocol's stability, these token sales may not be surprising. But it does appear some in the market have been caught off guard by the corresponding selling pressure and sentiment shift caused by these sales. That said, it could also be true that these ongoing upgrades provide outsized value relative to their initial up-front costs. Crypto investors and users want to see an Ethereum network that's as low cost and efficient as possible. That's what this Dencun upgrade aims to achieve. Additionally, some recent news around MetaMask launching an Ethereum validator staking feature could result in more locked-up Ethereum tokens, potentially offsetting some of the recent selling pressure we've seen from the Ethereum Foundation and others. These effects likely won't offset the institutional capital flight we're seeing from the crypto sector. However, it's the longer-term supply-and-demand dynamics investors will need to consider when it comes to this top-tier crypto. Thus, I think the jury remains out with respect to how Ethereum will perform as it continues its ongoing upgrades in the coming months. For now, sentiment has soured, but long-term investors may want to consider this dip as a potential buying opportunity, as traders look elsewhere to take on bullish positions. Should you invest $1,000 in Ethereum right now? Before you buy stock in Ethereum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Ethereum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of January 22, 2024 Chris MacDonald has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy . Why Ethereum Slumped More Than 6% Today was originally published by The Motley Fool
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