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2024-01-22 06:58:28+00:00

{"Bitcoin": [7065]}

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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.

2024-01-22 07:22:11+00:00

{"Bitcoin": [3887]}

{}

Japan Baseline Forecasts Show Government Missing Budget Goal

https://finance.yahoo.com/news/japan-baseline-forecasts-show-government-025750406.html

Bloomberg

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.

2024-01-22 07:33:25+00:00

{"Bitcoin": [2241]}

{}

Chinese Grilled Fish Diner Chain Considering Hong Kong IPO, Sources Say

https://finance.yahoo.com/news/chinese-grilled-fish-diner-chain-073325711.html

Bloomberg

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 haven’t yet been finalized, the people said. Representatives for CICC and GTMS didn’t 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 Lam’s Dim Sum, Chua Lam’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 08:01:39+00:00

{"Bitcoin": [4510]}

{}

Nickel Price Crash Seen Extending Indonesia’s Grip on Supply

https://finance.yahoo.com/news/nickel-price-crash-seen-strengthening-023009162.html

Bloomberg

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.

2024-01-22 08:23:40+00:00

{"Bitcoin": [2104]}

{}

Russia Becomes Top China Oil Supplier for First Time Since 2018

https://finance.yahoo.com/news/russia-becomes-top-china-oil-082340622.html

Bloomberg

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 world’s 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. It’s the first time Russia has been China’s 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. China’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 08:24:06+00:00

{"Bitcoin": [38, 230], "BTC": [290, 1275]}

{"Bitcoin": [28]}

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

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 world’s 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 fund’s 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 can’t 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 won’t have a choice (since they can’t buy bitcoin or are not allowed to touch them by their compliance dept) or even won’t 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 BITO’s 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.”

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

2024-01-22 09:23:24+00:00

{"Bitcoin": [694], "BTC": [82]}

{"Bitcoin": [65]}

Solana, Cardano Lead Crypto Market Lower as Traders Grapple With Bitcoin Headwinds

https://finance.yahoo.com/news/solana-sol-cardano-ada-lead-092324808.html

CoinDesk

https://www.coindesk.com

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. Solana’s SOL and Cardano’s ADA fell 5% in the past 24 hours, leading losses among majors. BNB Chain’s 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 Grayscale’s GBTC bitcoin exchange-traded fund (ETF), as per some analysts, including Bloomberg’s 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. BlackRock’s IBIT and Fidelity’s FBTC ETFs crossed $1 billion last week, data tracked by CoinGlass shows, indicative of buying pressure.

2024-01-22 09:36:51+00:00

{"Bitcoin": [3910]}

{}

Vanguard Piles Into Europe Periphery Debt as Rate Cuts Near

https://finance.yahoo.com/news/vanguard-piles-europe-periphery-debt-070000468.html

Bloomberg

https://www.bloomberg.com/

(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 world’s 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. He’s 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 Spain’s fundamentals are stronger than markets are pricing, while Greece’s return into investment grade status has increased the country’s appeal, Koutny said. Maturities of between five years and 15 years offer the best exposure in both countries, he said. Candriam’s Noyard, meanwhile, has warmed to Italian debt, praising the government’s “prudent fiscal stewardship.” Tighter Spreads The extra yield investors demand to hold Italy’s 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 Italy’s yield spread over Germany, the region’s main benchmark, was broadly in line with euro-denominated rates, and “did not betray excessive fears regarding Italy’s 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 Inc’s 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 country’s spread to add exposure, Noyard said. Valuations “look increasingly justified” by a strong economic and fiscal outlook, he added. Portugal’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 09:55:15+00:00

{"Bitcoin": [2488]}

{}

Credit Agricole Takes Stake in Worldline to Bolster Payments

https://finance.yahoo.com/news/credit-agricole-takes-7-stake-062955709.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 10:00:00+00:00

{"Bitcoin": [6593]}

{}

Chile Bond Sale May Tempt Government to Break Issuance Plan Announced Just Three Weeks Ago

https://finance.yahoo.com/news/chile-bond-sale-may-tempt-100000886.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Chile’s 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 Chile’s 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 Moody’s 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 “couldn’t 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 government’s 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. “Chile’s 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 Ministry’s dollar balance slid to $301 million from $719 million at end of October. Along with last week’s 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 government’s debt burden doubled in the past decade. Fitch Ratings and Moody’s Investors Service have stable outlooks, while S&P Global Ratings has a negative outlook. Read more: Fear of Lower Credit Rating Lingers Over Chile’s 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 Chile’s 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 Chile’s Aaktei, Uruguay’s HyNewGen Plan $470M Wind Farm: Tercera Chile Lower House Committee Approves Pension Reform Bill Chile’s Revamp of Private Pensions System Clears First Hurdle Chile’s 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 Chile’s $1.7 Billion Deal Adds to EM Bond Market Resurgence BCI Cuts Recommendation for Chile’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 10:01:41+00:00

{"Bitcoin": [4813]}

{}

Hong Kong Stocks at 36% Discount Show True Depth of China Gloom

https://finance.yahoo.com/news/china-stock-selloff-worsens-hong-050429499.html

Bloomberg

https://www.bloomberg.com/

(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 China’s most influential and innovative firms are listed and Beijing’s interference is less felt, paint a more worrisome picture of global investor sentiment toward the world’s 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 bank’s 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 world’s 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 Kong’s 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: China’s $6.3 Trillion Stock Rout Getting Uglier by the Day The benefits of monetary easing by the People’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 10:11:28+00:00

{"Bitcoin": [2286]}

{}

ASML Reclaims Title of Third-Biggest European Stock From Nestle

https://finance.yahoo.com/news/asml-reclaims-title-third-biggest-101128658.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 10:35:09+00:00

{"Bitcoin": [5954]}

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Modi Hails India’s ‘New Era’ With Opening of Major Hindu Temple

https://finance.yahoo.com/news/modi-inaugurate-major-hindu-temple-210000948.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 10:41:00+00:00

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{"Bitcoin": [4]}

Can Bitcoin Reach $100,000?

https://finance.yahoo.com/news/bitcoin-reach-100-000-104100358.html

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

2024-01-22 10:50:42+00:00

{"Bitcoin": [4139]}

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Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout

https://finance.yahoo.com/news/morgan-stanley-jpmorgan-buy-dip-015106576.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 10:57:02+00:00

{"Bitcoin": [8743]}

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Adani’s Lessons From Hindenburg Hit Fuel $93 Billion Rebound

https://finance.yahoo.com/news/adani-lessons-hindenburg-fight-fuel-233000795.html

Bloomberg

https://www.bloomberg.com/

(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

2024-01-22 11:00:00+00:00

{"Bitcoin": [3009]}

{}

Business Group Warns Trudeau Likely to Miss Canada’s Fiscal Goal

https://finance.yahoo.com/news/business-group-warns-trudeau-likely-110000603.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 11:00:00+00:00

{"Bitcoin": [5507]}

{}

Fund Pros Burned in AI Surge Are Giving Up on Active Management

https://finance.yahoo.com/news/fund-pros-burned-ai-surge-110000528.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 11:08:52+00:00

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Ivory Coast Tests Eurobond Market for Locked-Out African Nations

https://finance.yahoo.com/news/ivory-coast-tests-eurobond-market-110852119.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 11:10:00+00:00

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Can Shiba Inu Reach $0.01 in 2024?

https://finance.yahoo.com/news/shiba-inu-reach-0-01-111000248.html

Motley Fool

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

2024-01-22 11:44:00+00:00

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Missed Out on Bitcoin Mining Stocks? 2 Crypto Stocks to Buy Right Now

https://finance.yahoo.com/news/missed-bitcoin-mining-stocks-2-114400223.html

Motley Fool

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

2024-01-22 11:52:52+00:00

{"Bitcoin": [4294]}

{}

Harvest Fund Seeks Offshore Growth Amid China Rout

https://finance.yahoo.com/news/harvest-fund-seeks-offshore-growth-014105581.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 13:00:00+00:00

{"Bitcoin": [361]}

{}

First Mover Americas: Solana, Cardano Lead Losses as Market Starts Week in the Red

https://finance.yahoo.com/news/first-mover-americas-solana-cardano-130000962.html

CoinDesk

https://www.coindesk.com

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

2024-01-22 13:00:00+00:00

{"Bitcoin": [2530, 3069, 5268]}

{}

2 Cathie Wood Growth Stocks to Buy and Hold for the Long Haul

https://finance.yahoo.com/news/2-cathie-wood-growth-stocks-130000531.html

Motley Fool

http://www.fool.com/

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

2024-01-22 13:26:07+00:00

{"Bitcoin": [4046]}

{}

Hurricane-Force Winds Unleash Chaos Across Northern Europe

https://finance.yahoo.com/news/hurricane-force-winds-cause-chaos-073714810.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 13:28:56+00:00

{"Bitcoin": [2908]}

{}

World’s First Green Steel Plant Raises $4.6 Billion in Debt

https://finance.yahoo.com/news/world-first-green-steel-plant-132856074.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 13:38:01+00:00

{"Bitcoin": [2904, 3160, 4228]}

{}

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

https://www.bloomberg.com/

(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.

2024-01-22 13:41:45+00:00

{"Bitcoin": [6086]}

{}

Wall Street Banks Want to Lure Back Loan Deals Lost to Private Credit

https://finance.yahoo.com/news/wall-street-banks-want-lure-110100485.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 13:55:42+00:00

{"Bitcoin": [2948]}

{}

Gilead Sinks After Lung Cancer Drug Fails to Improve Survival

https://finance.yahoo.com/news/gilead-sinks-lung-cancer-drug-135542957.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 14:06:23+00:00

{"Bitcoin": [2294]}

{}

Too High or Too Low? Wall Street Split on Profit Margin Outlook

https://finance.yahoo.com/news/too-high-too-low-wall-140623505.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 14:06:49+00:00

{"Bitcoin": [3711]}

{}

Shift in Key Options Bet Suggests S&P 500 Can Rally Even Further

https://finance.yahoo.com/news/shift-key-options-bet-suggests-101249962.html

Bloomberg

https://www.bloomberg.com/

(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 what’s seen as the upper bound of the US benchmark’s 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 Friday’s 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 500’s 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: Citi’s Chronert Says US Stocks Aren’t 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 it’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 14:12:00+00:00

{"Bitcoin": [3089, 3259, 3331, 3410, 3479, 4293, 4359, 4490, 4637, 4667, 4929]}

{}

Cathie Wood’s Latest Stock Picks: 11 Biggest Positions

https://finance.yahoo.com/news/cathie-wood-latest-stock-picks-141200408.html

Insider Monkey

http://www.insidermonkey.com

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.

2024-01-22 14:19:21+00:00

{"Bitcoin": [4203]}

{}

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

Bloomberg

https://www.bloomberg.com/

(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 year’s 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 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. 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 China’s 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. Amer’s underwriters can sell an additional 15 million shares if there’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 14:37:56+00:00

{"Bitcoin": [488, 930]}

{}

FTX-tied Alameda Research drops lawsuit against Grayscale

https://finance.yahoo.com/news/ftx-tied-alameda-research-drops-143756247.html

Reuters

http://www.reuters.com/

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)

2024-01-22 14:39:30+00:00

{"Bitcoin": [304]}

{}

Pastor blows proceeds from $3 million crypto scam on home renovations, blames ‘the Lord’

https://finance.yahoo.com/news/pastor-blows-proceeds-3-million-143930448.html

Fortune

http://fortune.com/

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

2024-01-22 14:45:34+00:00

{"Bitcoin": [3998]}

{}

Boeing Scrutiny Spreads After FAA Check on Another 737 Model

https://finance.yahoo.com/news/boeing-scrutiny-spreads-faa-seeks-103739094.html

Bloomberg

https://www.bloomberg.com/

(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 they’ll 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, Indonesia’s 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 didn’t 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 14:55:05+00:00

{"Bitcoin": [4380]}

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Alphabet’s Moonshot X Lab Cuts Staff, Turns to Outside Investors

https://finance.yahoo.com/news/alphabet-moonshot-x-lab-cuts-140000191.html

Bloomberg

https://www.bloomberg.com/

(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

2024-01-22 15:00:12+00:00

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Robert Kiyosaki: Save Your Financial Future With This Investment

https://finance.yahoo.com/news/robert-kiyosaki-save-financial-future-150012346.html

GOBankingRates

https://www.gobankingrates.com/

©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

2024-01-22 15:01:08+00:00

{"Bitcoin": [4212]}

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Five Key Charts to Watch in Global Commodities This Week

https://finance.yahoo.com/news/five-key-charts-watch-global-220000908.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 15:05:29+00:00

{"Bitcoin": [2147]}

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Petroperu Bonds Tumble as Government Squashes Bailout Hopes

https://finance.yahoo.com/news/peru-says-lacks-funds-bail-023807053.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 15:17:05+00:00

{"Bitcoin": [4753]}

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Drone Attacks Menace Russia’s Key Route for Exporting Oil

https://finance.yahoo.com/news/drone-attacks-menace-russia-key-133339179.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 15:23:42+00:00

{"Bitcoin": [6577]}

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Trump’s Former Chief Usher Raises $100 Million Homebuyer Fund

https://finance.yahoo.com/news/trump-former-chief-usher-raises-152342438.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- A former White House chief usher during Donald Trump’s 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 Street’s perspective, it’s 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, it’s 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 House’s 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, Trump’s 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 property’s 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.” Here’s how it works: After obtaining a mortgage from an approved lender, the homeowner and Generational Equity would enter into a shared-equity agreement. The firm’s 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 wouldn’t have to wait that long. They can use Generational Equity’s 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 state’s 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 Equity’s 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 firm’s 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 Trump’s 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 shouldn’t go all debt on a big asset,” Caplin said. “It’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 15:29:38+00:00

{"Bitcoin": [2174]}

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Private Credit Duels With Banks for $8 Billion DocuSign LBO Debt

https://finance.yahoo.com/news/private-credit-duels-banks-8-152938833.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 15:56:07+00:00

{"Bitcoin": [3136]}

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JPMorgan Sees Discount Window Proposal as Attempt to End Stigma

https://finance.yahoo.com/news/jpmorgan-sees-discount-window-proposal-155607546.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 16:00:00+00:00

{"Bitcoin": [3676]}

{}

New Zealand Inflation Seen Slowing, But Not Enough for Rate Cuts

https://finance.yahoo.com/news/zealand-inflation-seen-slowing-not-160000287.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 16:08:40+00:00

{"Bitcoin": [3950]}

{}

Italy-Germany Yield Gap Reaches Two-Year Low on Rate Cut Bets

https://finance.yahoo.com/news/italy-debt-risk-measure-drops-081728460.html

Bloomberg

https://www.bloomberg.com/

(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 Europe’s 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 market’s confidence. Prime Minister Giorgia Meloni scored a huge win in November, when Moody’s 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 Europe’s Periphery Debt as Rate Cuts Near “Italy is not doing anything particularly radical in terms of structural reform, but equally it’s 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 country’s 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. That’s 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 area’s 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 there’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P. View comments

2024-01-22 16:16:15+00:00

{"Bitcoin": [2299]}

{}

Aurubis Moves to Terminate CEO’s Contract After Copper Scam

https://finance.yahoo.com/news/aurubis-moves-terminate-ceo-contract-161615711.html

Bloomberg

https://www.bloomberg.com/

(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 company’s 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 Aurubis’s 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. Aurubis’s 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 company’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 16:39:02+00:00

{"Bitcoin": [2200, 2242]}

{}

'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'

https://finance.yahoo.com/news/rich-dad-poor-dads-robert-193714809.html

Benzinga

http://www.benzinga.com/

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.

2024-01-22 16:57:23+00:00

{"Bitcoin": [3431]}

{}

Buy-Side Spending on Equity Trading and Research Hits Decade Low

https://finance.yahoo.com/news/buy-side-spending-equity-trading-165723429.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 17:03:23+00:00

{"Bitcoin": [578, 647, 821, 950, 1210, 1265, 1330, 1602]}

{"Bitcoin": [51]}

Crypto Funds Saw Outflows Last Week After Debut of Bitcoin ETFs

https://finance.yahoo.com/news/crypto-funds-saw-outflows-last-170323929.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 17:07:48+00:00

{"Bitcoin": [3570]}

{}

Milei Suspends Plan to Privatize Argentina State Oil Company YPF

https://finance.yahoo.com/news/argentine-oil-company-ypf-privatization-150959464.html

Bloomberg

https://www.bloomberg.com/

(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 Argentina’s 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. It’s 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 Argentina’s interventionist economy to build a free-market haven. YPF is Argentina’s 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 country’s 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. That’s because by keeping YPF under state control the government has a guaranteed tool for improving Argentina’s 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 YPF’s 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 — who’d 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 Argentina’s 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 17:16:42+00:00

{"Bitcoin": [89, 994, 1020, 1051]}

{}

FTX sold about $1 bln of Grayscale's bitcoin ETF since its approval - CoinDesk

https://finance.yahoo.com/news/ftx-sold-1-bln-grayscales-171642776.html

Reuters

http://www.reuters.com/

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)

2024-01-22 17:18:49+00:00

{"Bitcoin": [82, 987, 1012, 1043]}

{}

FTX sold about $1 billion of Grayscale's bitcoin ETF since its approval - CoinDesk

https://finance.yahoo.com/news/ftx-sold-1-billion-grayscales-171849142.html

Reuters

http://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)

2024-01-22 17:18:49+00:00

{"Bitcoin": [82, 987, 1012, 1043]}

{}

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)

2024-01-22 18:16:17+00:00

{"Bitcoin": [523, 1181]}

{}

UPDATE 2-FTX-tied Alameda Research drops lawsuit against Grayscale

https://finance.yahoo.com/news/1-ftx-tied-alameda-research-150929170.html

Reuters

http://www.reuters.com/

(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

2024-01-22 18:17:16+00:00

{"Bitcoin": [2130]}

{}

UK Puts Up an Extra £1.3 Billion to Build Sizewell C Reactor

https://finance.yahoo.com/news/uk-invest-extra-1-3-172311428.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 18:24:26+00:00

{"Bitcoin": [1979]}

{}

Nickel Prices Keep Slumping Even as Mines Close

https://finance.yahoo.com/news/nickel-prices-keep-slumping-even-113333800.html

Bloomberg

https://www.bloomberg.com/

(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

2024-01-22 18:25:38+00:00

{"Bitcoin": [3235]}

{}

Lula Unveils $60 Billion Plan to Revitalize Brazilian Industry

https://finance.yahoo.com/news/lula-unveils-60-billion-plan-182538021.html

Bloomberg

https://www.bloomberg.com/

(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

2024-01-22 18:29:34+00:00

{"Bitcoin": [195]}

{}

Stock market today: US futures remain buoyant after S&P hits record high

https://finance.yahoo.com/news/stock-market-today-us-futures-182934243.html

Business Insider

https://www.businessinsider.com/

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

2024-01-22 18:29:37+00:00

{"Bitcoin": [3467]}

{}

University of California Taps Bond Market for $1.7 Billion

https://finance.yahoo.com/news/university-california-taps-bond-market-182937711.html

Bloomberg

https://www.bloomberg.com/

(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.

2024-01-22 18:47:09+00:00

{"Bitcoin": [890, 927]}

{}

Dogecoin soars to weekly peak amid X Payments buzz

https://finance.yahoo.com/news/dogecoin-soars-weekly-peak-amid-184709276.html

Forkast News

https://forkast.news/

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

2024-01-22 19:09:00+00:00

{"Bitcoin": [172], "BTC": [40]}

{"Bitcoin": [0]}

Bitcoin Bulls Buoyed by Report of FTX's $1B GBTC Sale

https://finance.yahoo.com/news/bitcoin-bulls-buoyed-report-ftxs-190900213.html

CoinDesk

https://www.coindesk.com

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.

2024-01-22 19:11:47+00:00

{"Bitcoin": [3094]}

{}

ADM Places CFO on Leave, Cuts Profit Outlook on Probe

https://finance.yahoo.com/news/adm-places-cfo-leave-cuts-003128032.html

Bloomberg

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.

2024-01-22 19:28:34+00:00

{"Bitcoin": [2890]}

{}

Florida to Borrow Billions to Backstop Insurers After Hurricanes

https://finance.yahoo.com/news/florida-borrow-billions-backstop-insurers-192834261.html

Bloomberg

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.

2024-01-22 19:43:14+00:00

{"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)

2024-01-22 19:50:00+00:00

{"Bitcoin": [15, 832, 1015, 1242, 2086, 2735], "BTC": [1107]}

{"Bitcoin": [0]}

Bitcoin Falls Below $40,000 for the First Time Since December

https://finance.yahoo.com/news/bitcoin-slips-back-toward-40-123439338.html

Bloomberg

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. That’s 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 SEC’s 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. Europe’s STOXX index rose 0.7% while Nasdaq 100 up 0.2%, as investors remained optimistic about the US economy’s 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 don’t 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 20:05:14+00:00

{"Bitcoin": [5080]}

{}

Exxon Sues ESG Investors to Stop Climate Proposals on Ballot

https://finance.yahoo.com/news/exxon-sues-esg-investors-stop-232554126.html

Bloomberg

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.

2024-01-22 20:25:08+00:00

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{}

Key Oil-Market Gauge Rallies as Russian Crude Exports Threatened

https://finance.yahoo.com/news/oil-edges-lower-libya-restarts-235936559.html

Bloomberg

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

2024-01-22 20:29:30+00:00

{"Bitcoin": [3443]}

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GLOBAL MARKETS-Global stock index gains while US Treasury yields fall

https://finance.yahoo.com/news/global-markets-global-stock-index-202930221.html

Reuters

http://www.reuters.com/

* 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)

2024-01-22 20:32:26+00:00

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Bitcoin-Based Digital Art Image 'Genesis Cat' Sells for $254K in Sotheby's Auction

https://finance.yahoo.com/news/bitcoin-based-digital-art-image-203226593.html

CoinDesk

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.

2024-01-22 20:38:11+00:00

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{}

Truist, Fifth Third Add to Bank Bond Spree With $4.5 Billion

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 didn’t 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 seller’s 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, haven’t 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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 20:47:27+00:00

{"Bitcoin": [1440]}

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Soybean Oil Rises With More US Demand Forecast for Biofuels

https://finance.yahoo.com/news/china-corn-prices-tumble-three-042452394.html

Bloomberg

https://www.bloomberg.com/

(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 Japan’s Market Roars Back to Life—With Old-Timers Leading the Way ©2024 Bloomberg L.P.

2024-01-22 20:51:21+00:00

{"Bitcoin": [191, 1680, 4435]}

{}

Why Ethereum Slumped More Than 6% Today

https://finance.yahoo.com/news/why-ethereum-slumped-more-6-205121274.html

Motley Fool

http://www.fool.com/

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

2024-01-22 20:52:47+00:00

{"Bitcoin": [2782]}

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Nippon-US Steel Deal Merits ‘Serious Scrutiny,’ Brainard Says

https://finance.yahoo.com/news/nippon-us-steel-deal-merits-205247965.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- President Joe Biden’s top economic aide said the national security implications of a Japanese company’s bid to purchase United States Steel Corp. deserve a close look from US officials. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market “Steel is an industry that has very important national security considerations” as well as supply-chain concerns, Lael Brainard, who leads the National Economic Council, said Monday at a Brookings Institution event, referring to Nippon Steel Corp.’s proposed $14.1 billion deal. “So the particular transaction does merit serious scrutiny under our laws.” The sale, which would create the world’s second-largest steel company, has drawn concern from union leaders and prominent Democrats worried about the impact on jobs and supply chains. A review by the Committee on Foreign Investment in the United States is in its early stages and may extend into 2025, far longer than the companies have signaled. The panel, led by the Treasury Department, has the power to approve, block or amend deals on national security grounds, or send it to Biden for a decision. The CFIUS investigation will unfold against the backdrop of the 2024 presidential election, where Biden is using his program to revive the US manufacturing sector as an argument to voters for a second term. The sale of an iconic US company, headquartered in the battleground state of Pennsylvania, could have political repercussions for Biden, who is likely to again face Republican Donald Trump in the 2024 election The deal touches on Biden administration policy aims, including the president’s bid to empower and protect union workers as well as to boost tougher enforcement of antitrust laws. Biden is also courting foreign direct investment in a bid to spur an American manufacturing renaissance. Story continues “Those investments are a big part of the story, I think, the positive story that’s generating jobs and the kind of productivity growth that we’ve seen in the aggregate numbers recently,” Brainard said Monday. Companies have invested more than a half-trillion dollars across semiconductor, electric vehicle, clean energy and heavy industries since Biden took office, according to the White House — spurred by more than $1 trillion in federal spending across the Bipartisan Infrastructure Law, Inflation Reduction Act and the Chips and Science Act. 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.

2024-01-22 20:53:15+00:00

{"Bitcoin": [3203]}

{}

Brazil Sells $4.5 Billion in Record Dollar Bond Offering

https://finance.yahoo.com/news/brazil-selling-4-5-billion-185203737.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Brazil tapped debt markets for the second time in less than three months, holding a record bond offering and joining a slew of developing nations that sold new notes at the start of the year. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Latin America’s largest economy offered $2.25 billion in notes due in 2034 and another $2.25 billion in bonds maturing in 2054 to yield 6.35% and 7.15% each, according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. The sale comes as several developing-nation borrowers rush to issue hard-currency notes. On Monday alone, Saudi Arabia’s sovereign wealth fund was selling three tranches of US dollar-denominated bonds, while Ivory Coast began the process of marketing a eurobond. Mexico, Chile and Hungary are among emerging-market sovereigns which have already tapped markets in 2024, even as investors ditch risk assets amid a repricing of US interest rate odds and disappointing data from China. “Brazil is an opportunistic seller and it’s taking advantage of tight spreads and investor appetite for new issuance,” said William Snead, an analyst at Banco Bilbao Vizcaya Argentaria SA in New York. Read More: Emerging-Market Debt Sales Take Off, Lifting High-Rated Bonds Spreads on Brazil’s notes due in 2033 have tightened more than three basis points since the start to the year, amid a broader narrowing in the extra yield investors demand to own dollar-denominated bonds of developing-nation governments. ESG Plans Brazil’s last international debt sale happened in November 2023, when the country issued its first ever sustainable bond, intended to support President Luiz Inacio Lula da Silva’s environmental and social agenda. The operation priced $2 billion in notes due in 2031 to yield 6.5%. Brazil also sold $2.25 billion of 2033 notes last year, with a yield of 6.15% in a deal that saw high investor demand. Story continues The government plans to issue ESG bonds every year, according to a person familiar with the matter, who added that the next sale will only happen after the nation’s Treasury publishes reports on the impact of the first sale. That is expected to happen after March. The ESG notes will be sold in addition to regular sovereign issuances, which signals Brazil will tap international markets more often in 2024, according to the person, who asked not to be identified because the matter isn’t public. Brazil already has enough dollars to cover all of 2024 maturities, according the Treasury. The proceeds of regular bond sales this year will be used to pay for 2025 commitments, which total between $7 billion and $8 billion. --With assistance from Ezra Fieser and Esteban Duarte. (Updates with details on offering in second 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.

2024-01-22 20:57:02+00:00

{"Bitcoin": [2310]}

{}

Gucci Owner Buys Manhattan Building for $963 Million

https://finance.yahoo.com/news/gucci-owner-buys-nyc-building-181845725.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Kering SA, the fashion firm that owns Gucci and Balenciaga, purchased a building on Manhattan’s Fifth Avenue for $963 million, the latest massive New York City real estate deal by a global luxury company. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Kering bought 715-717 Fifth Ave., located at the corner of 56th Street, across from Trump Tower, according to a statement Monday. The property spans 115,000 square feet (10,700 square meters) and has multiple levels of retail space. “This investment represents a further step in Kering’s selective real estate strategy, aimed at securing key highly desirable locations for its Houses,” Kering said in the statement. Kering joins others snapping up buildings in New York instead of leasing space. Last month, Bloomberg reported that Prada is expanding its presence in Manhattan with an $835 million deal that includes two acquisitions on Fifth Avenue. It was among the largest real estate purchases in the city last year. Automaker Hyundai Motor Group bought a Tribeca building for offices and a showroom. The Prada and Kering Manhattan properties were sold by Jeff Sutton, according to people familiar with the matter who asked not to be identified citing private information. Representatives for Sutton and brokerage Eastdil Secured declined to comment. Manhattan’s retail properties have held up better than some other building types including offices, the Real Estate Board of New York said in a report Monday. Leasing has been most competitive in neighborhoods including SoHo and the Flatiron district. Kering has purchased other prime retail properties in recent years, including spots on Avenue Montaigne and Rue de Castiglione in Paris. The company also owns buildings in Tokyo’s Omotesando and the Hôtel de Nocé, which houses Boucheron’s Paris flagship. Story continues (Updates with seller information in fifth 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.

2024-01-22 21:00:00+00:00

{"Bitcoin": [239, 2203]}

{}

SEC X Account Hacker Hijacked Staffer Phone Number, Agency Says

https://finance.yahoo.com/news/sec-x-account-hacker-hijacked-210000331.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- A hacker hijacked a US Securities and Exchange Commission staffer’s phone number to make a fake social media post earlier this month, according to the regulator. The post prematurely claimed that the SEC had approved a spot Bitcoin exchange-traded fund to trade in the US. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout The SEC said on Monday that an unidentified person changed the password for the agency’s account after gaining control of an agency employee’s phone number to make the false post on Jan. 9. The message, which was later deleted, caused a brief surge in the price of the world’s biggest cryptocurrency. The agency ultimately did approve almost a dozen of the products the following day. Read More: SEC Says FBI Is Investigating Compromise of Agency’s X Account In its most detailed statement yet on US authorities’ ongoing probe into the incident, the SEC said that an employee’s phone was targeted in a “SIM swap” attack through the agency’s telecom carrier. That attack enabled the hacker to seize control of the agency’s account on X, formerly Twitter. “SEC staff have not identified any evidence that the unauthorized party gained access to SEC systems, data, devices, or other social media accounts,” the agency said in its statement. The US Justice Department, FBI, the Department of Homeland Security’s cyber unit, the Commodity Futures Trading Commission, and the SEC’s inspector general and enforcement division all continue to investigate the incident, the agency said. The SEC also said that multifactor authentication of its X account was disabled last July and wasn’t re-enabled until after the incident. Multifactor authentication is now enabled on all of the SEC social media accounts that offer it, according to the regulator. 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.

2024-01-22 21:00:36+00:00

{"BTC": [2739]}

{}

SEC blames 'SIM swap' attack for compromising X account ahead of ETF approval

https://finance.yahoo.com/news/sec-blames-sim-swap-attack-for-compromising-x-account-ahead-of-etf-approval-210036744.html

Yahoo Finance

http://finance.yahoo.com/

The Securities and Exchange Commission said Monday that a "SIM swap" attack was responsible for an unauthorized social media post that triggered market chaos and erased billions of market value in just minutes. The Jan. 9 post on X, formerly known as Twitter, stated that the SEC had granted money managers the approval to launch spot bitcoin exchange-traded funds, even though it hadn't. The final approval for those ETFs came roughly 24 hours later. The confusion that followed the fake post attracted new scrutiny to the SEC, a longtime foe of the cryptocurrency industry that is still in the middle of a widespread crackdown on some of crypto’s major players. The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products. — Gary Gensler (@GaryGensler) January 9, 2024 The SEC on Monday offered more details about how this hack happened. It said an "unauthorized party" obtained the SEC cell phone number associated with the account on X in what the agency is calling "an apparent 'SIM swap' attack." SIM swapping — a common technique in the world of cyber theft — is a way of transferring a person's phone number to another device without authorization. To pull off such an attack, hackers need to know how mobile wireless carriers authenticate a customer's identity and some portion of information about their victims. Often, this only requires a phone number and address. The SEC said access to the phone number "occurred via the telecom carrier, not via SEC systems" and that it has "not identified any evidence that the unauthorized party gained access to SEC systems, data, devices, or other social media accounts." Story continues Once in control of the phone number, the unauthorized party reset the password for the agency's @SECGov account on X. Law enforcement is currently trying to figure out how the unauthorized party got the carrier to change the SIM for the account and how it knew which phone number was associated with the account. The FBI and Justice Department, among other agencies, are working with the SEC on the investigation. The SEC also acknowledged Monday that multifactor authentication on the @SECGov X account had been disabled in July 2023 by X "at the staff's request" due to "issues accessing the account." It remained disabled until the account was compromised on Jan. 9. Securities and Exchange Commission Chairman Gary Gensler. (Jonathan Ernst/REUTERS) (REUTERS / Reuters) The mishap attracted new attention to SEC Chair Gary Gensler, a longtime foe of the crypto industry who had to disavow the unauthorized post on Jan. 9 with a post from his personal account. The price of bitcoin ( BTC-USD ) fell that afternoon from nearly $48,000 to $45,500, losing $63 billion in market value over just a matter of minutes. It has since dropped to roughly $40,000. The SEC provided few details the day of the mishap beyond saying the unauthorized public message on X "was not made by the SEC or its staff" and that there had been unauthorized access "by an unknown party for a brief period of time shortly after 4 pm ET." One longtime crypto backer, Anthony Scaramucci, pushed back on Gensler's explanation of the communications mishap hours after it happened. "I think Gensler is lying," he said on X. "I bet an employee screwed up and jumped the gun and he is blaming it on X." David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. Click here for the latest crypto news, updates, and more related to ethereum and bitcoin prices, crypto ETFs, and market implications for cryptocurrencies Read the latest financial and business news from Yahoo Finance

2024-01-22 21:03:39+00:00

{"Bitcoin": [1738]}

{}

Bailing DeSantis May Leave Deafening Crypto Silence in 2024 Presidential Race

https://finance.yahoo.com/news/bailing-desantis-may-leave-deafening-185758056.html

CoinDesk

https://www.coindesk.com

Ron DeSantis and Vivek Ramaswamy had the most to say about crypto in the 2024 presidential field, and as of this week, they've both returned to the political sidelines. Trump suddenly made noise about U.S. central bank digital currencies last week, but the issue remains a purely theoretical punching bag. Florida Governor Ron DeSantis may not have been a crypto authority, but he embraced digital assets as a political tool and ensured his influential state made moves to support the industry while he still had his eyes on the White House. His absence – and that of fellow candidate Vivek Ramaswamy – marks a sudden lack of crypto interest in this year's U.S. presidential race. Apart from Robert Kennedy Jr., a crypto-friendly independent candidate who has sought to start a third party to get on some of the 2024 ballots, DeSantis and Ramaswamy were the most eager politicians to make virtual assets part of the presidential conversation. Former President Donald Trump – who polls have as the dominant frontrunner in the Republican primary – did pick up one party talking point against a U.S. central bank digital currency (CBDC) at a campaign stop last week. "I will never allow the creation of a central bank digital currency," Trump said, acting surprised that the line whipped the crowd into enthusiasm. He warned – as DeSantis had many times before him – that a digital dollar run by the Federal Reserve would give the government "absolute control over your money." So, it's possible that this legacy digital-assets issue could survive the departures of DeSantis and Ramaswamy from the field, but besides his brisk personal business in non-fungible tokens (NFTs), Trump has shown no special interest in the field and once called Bitcoin a " scam ." And the specter of a U.S. CBDC has so far been a one-sided debate in which Republicans paint President Joe Biden and his administration as pushing a government token to spy on the citizenry when there hasn't been any evidence that the Fed or Department of the Treasury have any such plans. Both say they're studying CBDCs and whether such a thing could even be viable in the U.S., a review made more urgent as rival jurisdictions such as China and Europe have moved to put government tokens in place. Fed officials have vowed that they won't move on a digital dollar without orders from the White House and Congress – an outcome that is highly unlikely in the near term. DeSantis had made this a major campaign issue, boasting that his state had banned such tokens – a claim that ignored much of the legal nuance regarding the minor changes his government made in Florida. And tech entrepreneur Ramaswamy, who suspended his campaign last week , similarly denounced any government effort along those lines. Story continues Crypto was never going to be a central topic in the 2024 battle for the White House, but the Republican primary field had at least kept it on the fringes. Even former Arkansas Governor Asa Hutchinson, a presidential candidate who wasn't an outspoken industry booster, had revealed in his appearance at a crypto forum in New Hampshire that he was supportive of virtual-sector innovations . But he also dropped out last week. Trump's top challenger for the 2024 Republican nomination is Nikki Haley, a former South Carolina governor and U.S. ambassador to the United Nations. Haley has steered clear of crypto topics in her run for president. If something derails Trump's bid to become the nominee, Haley offers a blank slate for the digital assets sector. Read More: A Crypto President? Top U.S. 2024 Contenders Aren’t Fans, and Rivals Are Way Behind View comments

2024-01-22 21:09:49+00:00

{"Bitcoin": [7950]}

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SEC Probes B. Riley Deals With Client Tied to Failed Fund

https://finance.yahoo.com/news/sec-probes-b-riley-deals-012241260.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- US authorities are investigating B. Riley Financial Inc.’s deals with a key client who was linked to a securities fraud, and the use of his assets to help the investment bank obtain a loan from Nomura Holdings Inc., according to people familiar with the matter. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout The US Securities & Exchange Commission carried out interviews in recent months about B. Riley and its relationship with Brian Kahn, the people said, requesting anonymity as details aren’t public. Kahn is an unidentified co-conspirator in a US Department of Justice criminal case prompted by the 2020 demise of the Prophecy Asset Management hedge fund, Bloomberg News previously reported. Officials have been scrutinizing how Kahn led a buyout of a retail business called Franchise Group Inc. in a deal arranged last year by B. Riley. Nomura partly financed the transaction, with some of Kahn’s assets pledged as collateral, according to the people and documents reviewed by Bloomberg. Concern about B. Riley’s relationship with Kahn has helped send the Los Angeles-based firm’s shares tumbling, along with losses and writedowns on some of its investments, and the stock has attracted large bets by so-called short-sellers wagering on further declines. The brewing controversy also touches on Nomura, one of B. Riley’s biggest lenders, which has been seeking to repair its own reputation for risk management after losing almost $3 billion in 2021 amid the collapse of Archegos Capital Management. The stock fell as much as 10% Monday, finishing down 2.48% in New York. By one measure, B. Riley is among the most shorted shares in the global financial services sector, according to a Jan. 16 report from S&P Global Market Intelligence. Story continues A spokesperson for the SEC declined to comment. The probe is in its early stages. Scrutiny by the agency doesn’t necessarily mean anyone has engaged in any wrongdoing or that legal action will result, and Nomura isn’t the focus of the probe. “We have not received anything from the SEC on this matter and to the extent the SEC makes an inquiry, we would fully cooperate as we have done in the past on all regulatory inquiries,” a spokesperson for B. Riley said in an emailed statement. Short Sellers “We would welcome an investigation into the outrageous tactics the short sellers have pursued to destroy B. Riley, including the coordinated options trading with zero disclosure obligations,” the statement said. “The short sellers continue to harass, intimidate, and insult employees and everyone associated with B. Riley, resorting to lies and crude remarks so they can personally profit.” A Nomura representative said the bank declined to comment. B. Riley told shareholders on Nov. 9 in its quarterly filing with the SEC that the firm has enough cash and other sources of liquidity to meet its needs. Kahn and his attorney didn’t respond to messages. Read More: B. Riley Faces Investors After Deals, Profits and Stock Go Sour “At no time during my former business relationship with Prophecy did I know that Prophecy or its principals were allegedly defrauding their investors, nor did I conspire in any fraud,” Kahn said in a November statement. “Like many other investors, my relationship with Prophecy was costly, including economically, and I ceased doing business with Prophecy several years ago. In no way, shape or form has this previous relationship impacted Franchise Group.” Investigators from the SEC’s Los Angeles office have also sought information about bebe stores inc., a women’s clothing chain that B. Riley controls and that also had dealings with Kahn, one of the people said. Representatives for bebe stores didn’t respond to a request for comment. B. Riley, founded by Chief Executive Officer Bryant Riley, traces its roots to 1997 as a boutique stock-picking firm focused on smaller companies. It now offers a birth-to-death business model for smaller publicly traded clients, including stock and bond offerings. Prophecy’s Fall The controversy stems from Kahn’s status as a longstanding client of B. Riley, his alleged role in the downfall of Prophecy Asset Management, and his subsequent alliance with B. Riley to acquire Franchise Group in a leveraged buyout. Prophecy, an investment fund co-owned by John Hughes, strayed from its advertised strategy of spreading funds around to a diverse group of managers and instead handed almost all of its investors’ money to entities controlled by one adviser, according to court documents filed by prosecutors and the SEC. The adviser, described as a co-conspirator by prosecutors, proceeded to run up losses over time of about $290 million that wiped out Prophecy. The adviser wasn’t identified by name in court documents and SEC filings, but a person familiar with the matter said that person was Kahn, Bloomberg reported in November. Hughes has pleaded guilty to conspiracy to commit securities fraud and could be sentenced to as much as five years in prison. Kahn has not been charged and denies any wrongdoing related to Prophecy. Read More: Prophecy Fund Co-Founder Pleads Guilty to $294 Million Fraud Allegations in that case align with those in a separate 2020 civil lawsuit filed in New York by a group of Prophecy investors who named Kahn and others as defendants. The investors alleged Kahn and his co-defendants helped to swindle them out of tens of millions of dollars and that Kahn then used more than $100 million of proceeds to amass a controlling stake for himself in Franchise Group. The lawsuit, filed in federal court in New York, was referred to arbitration and dismissed in 2022. It’s not clear from court records whether there was a settlement or whether Kahn or his co-defendants paid any money. Franchise Group Last August, Kahn used his controlling stake to lead a leveraged buyout of Franchise Group, or FRG, a retail company based in Delaware, Ohio that owns brands such as Vitamin Shoppe and Sylvan Learning. Nomura arranged a $600 million lending syndicate for B. Riley to help finance the takeover. The Japanese bank committed $240 million, more than any other lender, one of the people said. B. Riley put up about $1.5 billion of various assets as collateral for the Nomura loan, according to loan documents reviewed by Bloomberg News. Some $220 million included shares of FRG, while $200 million is a loan B. Riley made to Kahn that is itself secured by more FRG stock, the documents show. The allegations against Kahn rippled through B. Riley’s relationship with Nomura and FRG’s credit rating. Loan documents show that at Nomura, a team of external advisers encouraged the Tokyo-based bank to write down the value of the loan to B. Riley, citing the allegations against Kahn and warning that the collateral for the debt may be tainted by fraud. Nomura decided not to take action, citing the overall strength of the loan, according to the documents and one of the people. Read More: Archegos ‘Friendship’ With Nomura Ended in $3 Billion Loss However, S&P Global Ratings downgraded FRG’s credit rating, which was already deep in junk territory, to B minus on Nov. 10, warning that its high leverage and “weak operating performance” could make its heavy debt burden unsustainable. S&P described the allegations against Kahn as an “unresolved” situation that could distract the company. --With assistance from Jill R. Shah, Austin Weinstein and Subrat Patnaik. (Updates with closing share price and description of Prophecy affair, starting in the fifth 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.

2024-01-22 21:10:40+00:00

{"Bitcoin": [2172]}

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Trump-Tied SPAC Surges 175% in Six-Day Rally

https://finance.yahoo.com/news/trump-tied-spac-surges-175-201211083.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Investors are swarming back into the blank-check firm seeking to take Donald Trump’s social media company public, as the former president cements his place as the Republican frontrunner for the party’s 2024 nomination. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Digital World Acquisition Corp. has surged nearly 200% over a six-day winning streak as shares power to the highest level since May 2022. Monday’s 88% rally, after Trump’s rival Ron DeSantis quit the primary race, marked the special purpose acquisition company’s best day since its meme-stock heyday in October 2021. The SPAC’s surge was kickstarted when the former president cruised to victory in the Iowa caucuses ahead of Tuesday’s New Hampshire presidential primary. After more than two years and regulatory issues, the deal to take Trump Media & Technology Group, the nascent media company behind Truth Social, is still being worked through. “The market has gone full bonkers,” says Julian Klymochko, chief executive officer of Accelerate Financial Technologies Inc., which has a SPAC-focused fund. In his view the current stock price implies an “excessive” valuation of $8 billion. “Shares do not reflect any fundamental intrinsic value of Truth Social, but they are more of a ‘trading sardine,’ or tool of speculation,” he said by email. The latest spike came as investors flipped out-of-the-money call options, a favorite strategy of retail traders and driver of many previous meme stock rallies. Options for the stock to trade above $55 — a level it hasn’t topped since April 2022 — were the most active. The ticker saw an increase in mentions on Reddit’s WallStreetBets and trader chatroom StockTwits in recent days. Story continues (Updates share movement 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.

2024-01-22 21:17:29+00:00

{"Bitcoin": [177, 3989]}

{}

FOREX-US dollar flat as Japan, European policy meetings loom

https://finance.yahoo.com/news/forex-us-dollar-flat-japan-211729121.html

Reuters

http://www.reuters.com/

* BOJ starts two-day policy meeting * Bets on BOJ exit from negative rates are off * ECB seen holding rates on Thursday * U.S. rate futures further pare back Fed cut in March * Bitcoin falls below $40,000 (Adds new comment, bitcoin price action, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, Jan 22 (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." Story continues 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. 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)

2024-01-22 21:18:23+00:00

{"Bitcoin": [3793]}

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ADM Plunges Most on Record After Probe, CFO Placed on Leave

https://finance.yahoo.com/news/adm-plunges-placing-cfo-leave-141449715.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Archer-Daniels-Midland Co. plunged 24%, the most on record, after the US agricultural trading giant suspended its chief financial officer and cut its earnings outlook pending an investigation into its accounting practices. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout The Chicago-based company said Sunday afternoon that Vikram Luthar, who had been its CFO since 2022, was put on administrative leave and Ismael Roig will step in on an interim basis. ADM is also delaying its fourth-quarter earnings and the filing of its annual report and Form 10-K for 2023. The probe was prompted by a voluntary document request from the US Securities and Exchange Commission and is focused on what ADM described as “intersegment transactions” involving its nutrition unit, which makes ingredients for human and animal foods. ADM said it’s cooperating with the SEC. A representative for the SEC didn’t immediately respond to a request for comment. ADM has spent billions expanding the 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 from row crop grains and oilseeds intro processed products. But profits have failed to live up to initial expectations due to weakening demand, including for plant-based food. The segment’s operating income was already 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 investigation is likely to result in a lower margin for nutrition, at a time when investors are already concerned about the risk to earnings, Andrew Strelzik, an analyst at BMO Capital Markets, said in a note. “We would expect ADM to reassess strategic priorities within Nutrition as the new profitability run-rate becomes more clear.” ADM now expects to deliver more than $6.90 per share in adjusted earnings for the year ended Dec. 31, after having forecast in October profits in excess of $7. The stock closed at $51.69 in New York, wiping out about $8.8 billion of market value. Analysts at Robert W Baird & Co., Barclays Plc and Goldman Sachs Group Inc. were among those to cut their stock ratings on ADM after the disclosure of the probe. 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, ADM’s lead director, said in the statement. “The board will continue to work in close coordination with ADM’s advisors to identify the best path forward and ensure ADM’s processes align with financial governance best practices.” Ernst & Young has served as ADM’s auditor since 1930. --With assistance from Austin Weinstein. (Updates with share price move in first paragraph and closing share price in the ninth paragraph. An earlier version of the story was corrected in the 10th paragraph to remove an inaccurate reference to cotton.) 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

2024-01-22 21:27:31+00:00

{"Bitcoin": [1978]}

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Barstool Deal Adds $502 Million to Video Site Rumble’s Value

https://finance.yahoo.com/news/barstool-deal-boosts-video-rumble-163326128.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- A partnership with Dave Portnoy’s Barstool Sports is powering shares of video platform Rumble Inc. higher. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout Investors flocked to the company backed by billionaire Peter Thiel, driving shares up 36% — adding about $502 million to its value. It was the biggest intraday share move since the company began trading in September 2022. The pact announced Monday will provide Rumble users access to all of Barstool’s sports and entertainment content on the platform and includes an advertising arrangement. Nearly 22 million shares changed hands on Monday, almost 12 times the average seen over the past 30 days. Rumble has emerged as an alternative to Google’s YouTube and aims to compete with social-media firms like X and Facebook. It claims to “create technologies that are immune to cancel culture,” according to the company’s website. Since going public through a blank-check merger in 2022, Rumble shares have struggled. The stock has fallen about 60% since its debut. Earlier this month, Barstool’s Chief Executive Officer Erika Ayers Badan stepped down. The departure took place five months after Penn Entertainment Inc., which used the brand to launch an online gambling business, sold Barstool back to Portnoy for $1 last year, taking a loss of up to $850 million. Barstool has grown its audience by 194% over the past three years and reached 1.6 billion podcast downloads, according to the press release. The new deal will provide it access to Rumble’s cloud services. (Updates share move and value.) 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.

2024-01-22 21:30:31+00:00

{"Bitcoin": [7873, 8573]}

{}

Stocks Rise as Wall Street Builds on Record Highs: Markets Wrap

https://finance.yahoo.com/news/asian-stocks-climb-p-500-225800842.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Stocks saw small gains while still closing at fresh records, with traders weighing strong economic signals and prospects for corporate profits amid warnings that the market has run too far, too fast. 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 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 Equities are shaking off a rocky start to the year on bets the Federal Reserve will cut rates and the artificial-intelligence boom will keep fueling profit growth. Earnings season kicks into high gear this week, with companies including Netflix Inc., Tesla Inc. and Intel Corp. due to report their numbers. “The record-high breakout we saw on Friday is attracting momentum,” said Mark Hackett at Nationwide. “Though we may not be shooting straight to the moon, the current environment is encouraging and a good reminder for investors that cash isn’t always king.” The S&P 500 hovered near 4,850. Treasury 10-year yields declined two basis points to 4.10%. The dollar barely budged. After the closing bell, United Airlines Holdings Inc. said profit this year will likely top analyst estimates despite a first-quarter loss. “The story is changing for bulls,” said David Donabedian at CIBC Private Wealth US. “Investor optimism had been driven by the belief there would be aggressive rate cuts by the Fed. Now investor belief has pivoted to view the economy as bullet-proof. No matter how high interest rates go, the economy will continue to glide right through.” Last week’s record close for US stocks has pulled valuations back to the highs seen last July. But a closer look shows that the market isn’t as expensive as it appears, according to Citigroup Inc.’s Scott Chronert. Gains in Apple Inc., Microsoft Corp., Nvidia Corp., Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Tesla have powered the resurgence on Wall Street. The equally weighted version of the S&P 500 strips out some of their outsized influence and results in a ratio of around 16 times forward earnings, a discount of 17% to the benchmark’s standard valuation. Story continues “With AI set to remain the key theme driving global tech stocks again this year and the rest of the decade, we maintain our preference for the semiconductor and software sectors and see opportunities in those involved in memory and AI edge-computing,” said Solita Marcelli at UBS Global Wealth Management. The Ned Davis Research Leading Indicator Model — based on 10 indicators that typically lead the S&P 500 — has already been flashing bullish for most of the past year. The majority of the components are price-based and include one on sentiment with two others on macroeconomics. Although the model is just off its highs, with four of the seven bullish indicators starting to weaken including financials, volume demand and weekly new highs on the New York Stock Exchange, the key gauge still points to equity strength. To Lisa Shalett at Morgan Stanley Wealth Management, with forward multiples already at historic peaks and earnings forecasts for 12 months forward ambitious, stock gains may stall in 2024 — as better earnings are met with lower valuation multiples, characteristic of a midcycle or soft-landing environment. 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 Fed officials who’ve pushed back against reducing interest rates too soon. 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. “The push and pull between interest rates and the markets have been discussed ad nauseam, but looking back over the past two years, it has been the Fed’s actions that have led the markets, said Paul Nolte at Murphy & Sylvest Wealth Management. “Will the economy catch a chill if the Fed keeps rate cuts on ice? It will depend largely on the earnings season that gets into full swing this week.” 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. Yung-Yu Ma at BMO Wealth Management is betting the stock market outlook will brighten by the second half of the year as the Fed’s rate cuts are likely to begin and companies and consumers look ahead to a better spending environment. “We believe the Fed will cut rates just three or four times in 2024,” he noted. “Ultimately, the short-term interest rate trajectory continuing to point downward is more important than how many cuts take place in 2024 versus what gets pushed out into 2025. If the end of 2024 sees both growth acceleration and continued low inflation, that will set up an especially favorable backdrop for stocks.” Corporate Highlights: Archer-Daniels-Midland Co. plunged after the US agricultural trading giant suspended its chief financial officer and cut its earnings outlook pending an investigation into its accounting practices. Sunoco LP, a US gas station owner, agreed to acquire pipeline and fuel storage company NuStar Energy LP for about $7.3 billion in a move to diversify its business and buy up a key part of its supply chain. Digital World Acquisition Corp., the blank-check firm seeking to take Donald Trump’s media company public, surged after Ron DeSantis dropped out of the 2024 US presidential race and endorsed Trump. Arkhouse Management Co. has asked Macy’s Inc. for access to more financial information after the US department store operator rejected a $5.8 billion takeover offer from the investment firm and Brigade Capital Management. US authorities are investigating B. Riley Financial Inc.’s deals with a key client who was linked to a securities fraud, and the use of his assets to help the investment bank obtain a loan from Nomura Holdings Inc., according to people familiar with the matter. Gilead Sciences Inc. slid after its drug Trodelvy failed to meet a key goal in a study of patients with advanced lung cancer. 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. 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 year’s first major initial public offerings. Key events this week: Japan BOJ rate decision, Tuesday. Eurozone consumer confidence, Tuesday. New Hampshire holds first-in-the-nation presidential primary, Tuesday. European Central Bank issues bank lending survey, Tuesday. Canada rate decision, Wednesday. Eurozone S&P Global Services & Manufacturing PMI, Wednesday. US S&P Global Services & Manufacturing PMI, Wednesday. Eurozone ECB rate decision, Thursday. Germany IFO business climate, Thursday. US GDP, initial jobless claims, durable goods, wholesale inventories, new home sales, Thursday. Japan Tokyo CPI, Friday. US personal income & spending, Friday. Bank of Japan issues minutes of policy meeting, Friday. Some of the main moves in markets: Stocks The S&P 500 rose 0.2% as of 4 p.m. New York time The Nasdaq 100 was little changed The Dow Jones Industrial Average rose 0.4% The MSCI World index rose 0.3% Currencies The Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.1% to $1.0885 The British pound was little changed at $1.2709 The Japanese yen was little changed at 148.05 per dollar Cryptocurrencies Bitcoin fell 3.9% to $40,127.03 Ether fell 5.5% to $2,337.08 Bonds The yield on 10-year Treasuries declined two basis points to 4.10% Germany’s 10-year yield declined five basis points to 2.29% Britain’s 10-year yield declined two basis points to 3.90% Commodities West Texas Intermediate crude rose 2.4% to $75.19 a barrel Spot gold fell 0.4% to $2,020.87 an ounce This story was produced with the assistance of Bloomberg Automation. --With assistance from Denitsa Tsekova, Kasia Klimasinska, Michael Msika, Sujata Rao, John Viljoen, Jessica Menton, Elena Popina and Matt Turner. 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.

2024-01-22 21:36:00+00:00

{"Bitcoin": [27]}

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Top Thematic ETF Ideas for 2024: AI & More

https://finance.yahoo.com/news/top-thematic-etf-ideas-2024-213600201.html

Zacks

http://www.zacks.com/

(1:00) - Breaking Down The Bitcoin Trust ETF: IBIT (5:40) - Why Should Investors Focus On Targeted Investment Opputunities in 2024? (7:45) - How To Benefit From The Next Phase of AI? (12:00) - Where To Find Healthcare Investments For 2024? (16:30) - The Revival of Globalization and How To Take Advantage As An Investor (20:40) - Episode Roundup: SOXX, IDGT, IBRN, IDNA, EWW, EMXC, INDA, EPI In this episode of ETF Spotlight, I speak with Jay Jacobs, U.S. Head of Thematics & Active Equity ETFs at BlackRock, about the 2024 thematic investing outlook. Mega-cap stocks surged last year, thanks largely to the AI Bonanza. With AI adoption and spending expected to expand this year, new avenues for business growth will open up for tech companies beyond the Magnificent Seven. We’ll see more enterprise spending on AI due to increasing use cases and significant cost savings. According to BlackRock, investors should focus broadly on the AI value chain and specifically on semiconductors. NVIDIA NVDA, AMD AMD and Broadcom AVGO are the top holdings in the iShares PHLX Semiconductor ETF SOXX. The iShares Robotics and Artificial Intelligence Multisector ETF IRBO includes many small- and mid-cap companies that are attractively valued compared to mega caps. Biotech companies struggled last year as interest rates surged. In addition to attractive valuations, companies specializing in genomics and neuroscience are poised to benefit from AI-driven medical innovation. The iShares Biotechnology ETF IBB and the iShares Genomics Immunology and Healthcare ETF IDNA are worth considering. Many American companies are now focusing on nearshoring, friend-shoring, and reshoring to make their supply chains safer and more reliable. India and Mexico are among the biggest beneficiaries of this trend. Tune in to the podcast to learn more. Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com. Story continues Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report iShares Biotechnology ETF (IBB): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports iShares Genomics Immunology and Healthcare ETF (IDNA): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research

2024-01-22 21:36:17+00:00

{"Bitcoin": [3007]}

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Saudi Arabia’s Wealth Fund Joins EM Rush to Tap Bond Market

https://finance.yahoo.com/news/saudi-arabia-wealth-fund-joins-121606057.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Saudi Arabia’s sovereign wealth fund raised $5 billion of high-grade bonds on Monday, the latest borrower to benefit from investors’ demand for emerging-market debt. 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 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 The Public Investment Fund sold five-, 10- and 30-year senior unsecured notes in US dollars, according to a person familiar with the matter. Combined order books were above $27 billion, excluding joint lead managers’ interest, said the person, who asked not to be identified because they’re not authorized to speak about it. The PIF, which manages over $700 billion in assets, is following a spree of bond sales last week, including from Mexico and Hungary. Brazil on Monday tapped debt markets for the second time in less than three months, selling $4.5 billion of dollar notes. Meanwhile, the Kingdom of Saudi Arabia itself borrowed $12 billion earlier in January, as investors seek to grab debt at high yields before global central banks are expected to lower interest rates later this year. Read more: Saudi Arabia Is Set to Add to Rush of Emerging-Market Bond Deals It’s the wealth fund’s first debt sale this year, following a sukuk offering in October and green bonds in February. The final spread narrowed by 35 basis points versus the initial price target for the shortest tranche and 30 basis points for the 10-year and 30-year tenors. The pricing levels imply a small new issue concession of between 4 and 6 basis points, according to Bloomberg calculations. The deal “offers a small premium considering the ongoing geopolitical tensions in the broader Middle East region,” said Apostolos Bantis, managing director of fixed income advisory at Union Bancaire Privee Ubp SA, who expected the final pricing to tighten by circa 25 basis points and demand to remain healthy enough. Story continues The PIF is a key part of Crown Prince Mohammed bin Salman’s efforts to diversify the Saudi economy from oil. It plans to invest hundreds of billions of dollars in the coming years on everything from electric vehicles to semiconductors, tourism resorts and sports. The fund, chaired by the crown prince, who is the kingdom’s de facto ruler, was the world’s most active sovereign investor in 2023, according to research consultancy Global SWF, deploying almost $32 billion on deals. The PIF mandated JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc. as joint global coordinators for the bond sale. --With assistance from Paul Cohen, Caleb Mutua and Christopher DeReza. (Updates the first three paragraphs with Saudi Arabia and Brazil deals pricing.) 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.

2024-01-22 21:37:27+00:00

{"Bitcoin": [4257]}

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Goldman’s Schiffrin Sees Four Fed Rate Cuts, 2% Inflation for 2024

https://finance.yahoo.com/news/goldman-schiffrin-sees-four-rate-213727441.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The Federal Reserve will lower interest rates starting in March for a total of four times this year and inflation will hit the central bank’s 2% target, according to Joshua Schiffrin, Goldman Sachs Group Inc.’s global head of trading strategy. 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 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 The trading executive, who last year correctly predicted a soft landing in the US economy, expects the Fed’s counterparts in Europe and the UK to follow suit. The Bank of Japan, however, will buck the trend, raising rates in April, Schiffrin said in his list of 10 predictions for 2024. While risky assets will deliver gains broadly this year, Schiffrin warns the first half will be tough to navigate as markets gyrate on bets over the timing and pace of Fed rate cuts. He advises investors to look for opportunities in emerging markets such as Turkey and touts Chinese stocks as a contrarian buy after the local benchmark hit pandemic lows. “The first half of 2024 will be a different kind of year than the past four with choppy rangebound markets and no giant trends,” Schiffrin wrote in a note to clients. “The central banks ease will dominate the storylines but that may be hard to trade given how much is priced.” Bond traders have pared back their expectations for rate cuts amid a slew of better-than-expected economic data. Back in December, a March rate reduction was seen as a sure thing. Now, the implied probability has been reduced to around 40%. For all of 2024, swaps point to a total of 135 basis points of interest-rate reductions, versus 100 basis points projected by Schiffrin. Shipping disruptions at the Red Sea as a result of geopolitical tensions are unlikely to deter the broader downtrend in pricing pressures, according to the Goldman trader. Going forward, the Fed will likely modify its inflation target to a range of 1.5% to 2.5% next year once the 2% target is achieved, he said. Story continues Fed Chairman Jerome Powell and his colleagues, scheduled to convene next week on monetary policies, are expected to hold interest rates steady for the fourth straight meeting. “I believe very much in a March cut,” Schiffrin said. “I think they recognize there are a lot of benefits to starting on the sooner side – they can then likely go gradually and speed up the pace of cutting if the economy really weakens but such a plan would reduce the chance they get meaningfully behind the curve. And of course they can always stop the cuts at a still restrictive level.” Schiffrin, who joined Goldman in 2001 and was named a partner in 2012, proved prescient for his soft-landing call issued a year ago. Back then, when investors and economists largely fretted over elevated inflation and a looming recession, he was more upbeat. In the end, the economy chugged along and the consumer price index fell from a 6.4% annualized pace to 3.4%. Last January, he also called for the Bank of Japan to “eliminate” its policy to suppress long-term borrowing costs known as yield curve control. Nine months later, as rising US Treasury yields pulled global rates higher, the BOJ signaled it would let benchmark rates breach a threshold, though it retains a tight grip on yields. Some of Schiffrin’s other 2023 projections fared worse, by his own admission. He under-estimated the magnitude of the Fed’s rate hikes and misjudged the Bank of England as being the first major central bank to lower rates. His call for the Japanese yen to strengthen against the dollar misfired, too. Going forward, Schiffrin expects the next 20-basis-point move in US yields to be on the way up rather than down given the steady growth trajectory. One of his out-of-consensus bets: Long China. “Chinese stocks will have a great year and surprise everyone. There is just so much bearishness there,” he wrote. “I would suggest doing this in options.” 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.

2024-01-22 21:47:32+00:00

{"Bitcoin": [2307]}

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Zions Rises on 2024 Net Interest Income Outlook

https://finance.yahoo.com/news/zions-rises-2024-net-interest-214732483.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Zions Bancorp shares rose after the company gave a forecast for 2024 net interest income that was higher than some analysts are estimating for the year. 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 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 The Salt Lake City-based bank said it expects NII — the difference between what banks make from lending and what they pay for deposits — to be “slightly decreasing” this year. By the fourth quarter, NII “is expected to be stable to slightly increasing” from a year earlier, Zions said in an earnings presentation Monday. “We are poised for growth in the year ahead,” Chief Executive Officer Harris Simmons said in a statement. “We expect that our business investments and focus on improved client profitability, combined with stable or lower short-term interest rates and continued moderate economic expansion in the western United States, should result in client acquisition and improvement in our financial results.” Zions shares rose 4.1% to $43.31 in New York on Monday after the bank released results on its website during the trading day. Like many of its regional banking rivals, Zions has been grappling with rising deposit costs as consumers sought higher-yielding places to put their money. The Federal Reserve’s efforts to tame inflation through interest-rate hikes last year also crimped loan demand, hurting a key source of revenue at the bank. “Based on our interpretation, it is a positive outlook for 2024 relative to consensus,” Terry McEvoy, a managing director on the institutional equities and research team at Stephens Inc., said in an interview. “And the market is reacting to the the 2024 outlook.” Zions, with more than $87 billion of total assets as of Dec. 31, reported fourth-quarter earnings of 78 cents a share, less than analysts’ estimates of 98 cents. Fourth-quarter NII came in at $593 million, beating forecasts of $586.9 million. 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.

2024-01-22 21:54:22+00:00

{"Bitcoin": [7891]}

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Fed’s Watchdog Clears Ex-Officials Kaplan, Rosengren in Probe of 2020 Trades

https://finance.yahoo.com/news/fed-watchdog-clears-ex-officials-191608781.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- The Federal Reserve’s internal watchdog cleared two former policymakers of legal wrongdoing in a years-long probe into their personal trading activity in 2020, but chastised them for undermining public confidence in the central bank. 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 China Weighs Stock Market Rescue Package Backed by $278 Billion Never Trumpers Brace for New Hampshire Shutout Robert Kaplan carried out multiple $1 million-plus transactions when he was president of the Dallas Fed, at a time when the Federal Open Market Committee deployed a variety of large-scale operations to stabilize markets at the onset of the pandemic. Eric Rosengren, head of the Boston Fed at the time, made numerous trades in funds that were invested in mortgage-backed securities in 2020. None of the trades violated federal law or broke any rules or regulations, the Fed inspector general said in a report released Monday, though it called the rules in place at the time inadequate and said the trading created an “appearance of a conflict of interest.” For Kaplan, the trades also created an appearance that he was acting on information gleaned from confidential policy deliberations, the report said. Kaplan and Rosengren retired in 2021 soon after the release of their 2020 financial disclosures. Rosengren did not immediately respond to a request for comment. A spokesperson for Kaplan pointed to his statement, released when he resigned in September 2021, that he adhered to all Fed ethical standards and policies, and that his trading activities and disclosures met bank compliance rules. The spokesperson also pointed to a statement from the Dallas Fed board at the time that said Kaplan “conducted his investment activities in accordance with the rules and policies of the Federal Reserve System.” Story continues The trades and resulting probes have increased scrutiny and criticism of the Fed, and prompted bipartisan legislation that would bolster congressional oversight of the central bank. The Fed revamped its trading rules in 2022, imposing sweeping restrictions on officials’ investing and trading activity. In its report Monday, the IG said the previous rules “did not sufficiently support public confidence in the impartiality and integrity of the policymakers and senior staff carrying out the public mission of the FOMC’s work.” “The disparity of the public response and the IG’s seemingly accurate conclusion that the trades complied with the rules as they existed is a clear testament to the woeful inadequacy of the rules that were in place,” said Kathryn Judge, a Columbia Law School professor. “Just because they have been cleared by the IG doesn’t mean they have been cleared by the public or their peers,” Judge said, adding that this can serve as a check against inadequate ethics rules. The scandals increased attention from Congress on the Fed, with lawmakers questioning governance around reserve bank presidents, who are chosen by local boards in an opaque process. Fed governors, by contrast, are subject to Senate confirmation. Senator Elizabeth Warren said in 2021 that the trading scandal raised concerns about “a culture of corruption” at the central bank, and said that she wouldn’t support Chair Jerome Powell for a second term as chairman. Warren has blasted the Fed for withholding information from lawmakers about the trades, and introduced bipartisan legislation to subject the Fed’s regional banks to federal public disclosure laws. “The Federal Reserve is committed to upholding the highest ethical principles to maintain public confidence in the impartiality of its actions,” a Fed spokesperson said in a statement Monday. “The comprehensive new rules adopted in 2022 — including restrictions on the type, manner, and timing of investments, pre-clearance requirements, and a strict disclosure regime — guard against even the appearance of conflicts of interest. We continue to evaluate our rules and will update them as necessary.” The trades by Kaplan and Rosengren in 2020 occurred during the pandemic, when the Fed was intervening directly in a broad array of financial markets to support the economy. The Fed used its balance sheet to buy up Treasuries, mortgage-backed securities, corporate bonds and municipal debt. The huge intervention put a floor under asset markets, with the S&P 500 stock index decisively turning off its lows on March 23, 2020, when the Fed announced its support programs. Kaplan’s disclosure listed stock trades in securities such as Apple Inc. and an S&P 500 ETF. Rosengren’s trades happened as the Fed bought billions of dollars of mortgage-backed securities in an effort to backstop markets, a piece of its crisis-fighting arsenal that’s similar to what it did during the financial crisis in 2008 and after. Kaplan, who disclosed most of his 2020 trading activity but failed to report the actual days they were executed on, and didn’t report transactions based on stock option contracts, didn’t violate the rules at the time for reserve bank disclosures, the IG said, but the missing information would have “provided a more comprehensive understanding of his trading activities.” From March 17 to March 19, the report said, Kaplan made multiple trades including stock index securities. A few days later, the Fed would announce “extensive” new measures to support the economy. The report detailed a back-and-forth between staff at the Fed Board in Washington and the Dallas Fed general counsel in 2021, including an instance of the general counsel stating that she didn’t provide the board with dates for Kaplan’s trades because they would then be subject to public disclosure laws. The reserve banks, semi-private entities, are not subject to Freedom of Information Act requests. Revamped Rules The Fed issued new ethics rules following the scandal to bar top officials from buying individual stocks and bonds, limit active trading and require new appointees to divest certain assets before joining the Fed. Those rules are “far better than what we had before,” former New York Fed President Bill Dudley said on Bloomberg Radio. “Certainly the appearance of a conflict is a bad thing because it can undercut the credibility of the central bank.” The Fed IG on Monday also released additional details of an earlier investigation into trading by Powell and former Vice Chair Richard Clarida that cleared them both of wrongdoing in 2022. Mark Bialek, the Fed’s inspector general, has faced scrutiny in the wake of that probe from some lawmakers, who argue his position comes with inherent conflicts of interest. The Fed’s internal watchdog is chosen by the Fed chair, and he reports to the Fed board in Washington. His compensation is also based on the salaries of board officials who he may have to investigate. Warren and Senator Rick Scott, a Florida Republican, have introduced legislation to make the IG position a presidential appointee, confirmed by the Senate. “It’s hard for an IG, who’s not independent of the chairman, to investigate activities of direct reports of the chairman,” said Aaron Klein, a senior fellow at the Brookings Institution. “The Fed IG needs structural reform and reports like this undermine confidence in the faith of the Federal Reserve system.” Atlanta Fed President Raphael Bostic, who in 2022 said he inadvertently omitted transactions from his financial disclosures, is also under investigation by the Fed’s internal watchdog. The latest report didn’t address those transactions. --With assistance from Michael McKee and Molly Smith. (Updates with Fed comment in 12th 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.

2024-01-22 22:03:21+00:00

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NYC’s Second Avenue Subway Risks Delay Without Congestion Toll

https://finance.yahoo.com/news/nyc-second-avenue-subway-risks-220321988.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- A long-awaited $7 billion plan to extend New York City’s Second Avenue Subway to Harlem needs congestion pricing revenue to avoid being sidelined. 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 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 The Metropolitan Transportation Authority, which runs the city’s transit system and is also implementing congestion pricing, on Monday awarded a $182 million contract to relocate underground utilities and make way for future construction work to link the Q subway line from 96th Street on the Upper East Side to 125th Street in Harlem. But to sign off on those tunneling and excavation agreements, the MTA needs to resolve legal challenges against congestion pricing, Jamie Torres-Springer, head of the MTA’s construction and development, told reporters during a media briefing Monday. “It’s very important that we get through the unfortunate challenges to congestion pricing, which is going to allow a lot of critical projects to proceed on schedule,” Torres-Springer said. “We’re pretty confident and optimistic that the courts are going to find that the MTA followed an appropriate process and be able to proceed.” Congestion pricing will charge E-ZPass motorists $15 during peak periods to drive into Manhattan’s central business district, which runs from 60th Street to the southern tip of the island. New Jersey Governor Phil Murphy, the United Federation of Teachers, Staten Island President Vito Fossella and a group of district residents have all filed lawsuits to prevent or delay the new toll. Those in opposition say the toll penalizes drivers who already pay tolls on bridges and tunnels to get into Manhattan. NJ Lawsuit Against Congestion Pricing Delays NYC Subway Upgrades The MTA anticipates the new tolling plan will reduce traffic and improve air quality in the district and also provide $1 billion a year in new revenue. The transit provider will then borrow against those funds to support $15 billion in capital projects, including extending the Q-line to 125th street, which is expected to serve more than 100,000 daily riders on average. NYC’s Second Avenue Subway Expansion to Harlem Set to Move Ahead The lawsuits have already delayed a $1.3 billion project to upgrade subway signals on the A and C subway lines in Brooklyn because of the ongoing litigation around congestion pricing. Story continues Lengthening the Second Avenue subway to 125th Street will better serve an area where 70% of its residents rely on transit and 34% live below poverty, according to the MTA. The project — set to open in the early 2030s, according to Torres-Springer — will create three new fully-accessible subway stations, save some riders up to 20 minutes in travel time and reduce crowding on nearby subway lines. 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

2024-01-22 22:08:51+00:00

{"Bitcoin": [3578]}

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GLOBAL MARKETS-Global stock index gains while US Treasury yields fall

https://finance.yahoo.com/news/global-markets-global-stock-index-220851422.html

Reuters

http://www.reuters.com/

* 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 after U.S. stock market close) By Sinéad Carew NEW YORK Jan 22 (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%. Story continues 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. "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)

2024-01-22 22:16:11+00:00

{"Bitcoin": [100, 456, 634]}

{"Bitcoin": [9]}

UPDATE 2-Bitcoin falls to $40,000, lowest level since bitcoin ETF launch

https://finance.yahoo.com/news/1-bitcoin-falls-40-000-205112982.html

Reuters

http://www.reuters.com/

(Adds more context on bitcoin selling pressure in paragraph 8-9; updates prices) Jan 22 (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) View comments

2024-01-22 22:37:51+00:00

{"Bitcoin": [2080]}

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US stocks eye fresh record highs as earnings season heats up

https://finance.yahoo.com/news/us-stocks-eye-fresh-record-223751651.html

Business Insider

https://www.businessinsider.com/

Spencer Platt/Getty Images US stocks edged higher on Monday to hit new record highs as earnings season gets underway. There are 75 S&P 500 companies set to report earnings this week, including Tesla and Netflix. Investors will turn their attention to the economic data later this week with the release of Q4 GDP. US stocks jumped on Monday to new record highs, extending their gain from last week as the fourth-quarter earnings season gets underway. There are 75 S&P 500 companies scheduled to report fourth-quarter results this week, including Tesla and Netflix . With 10% of the S&P 500 having reported earnings so far, 65% are beating profit estimates with a median gain of 6%, according to data from Fundstrat. Meanwhile, 62% of those companies beat revenue estimates by a median of 2%. Investors will turn their attention to economic data later this week with the release of fourth-quarter GDP growth, which should help inform when the Federal Reserve might get started with interest rate cuts this year. Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday: S&P 500 : 4,856.52, up 0.37% Dow Jones Industrial Average : 37,978.66, up 0.34% (+127.31 points) Nasdaq Composite : 15,416.28, up 0.71% Here's what else is going on today: China's stock market has lost $6.3 trillion in value since 2021, and there are no signs of a recovery underway as 2024 gets off to a rocky start. The Nasdaq Golden Dragon China Index has plunged 14% so far this year and is trading near its lowest level since 2013. Buying a diamond is set to get a lot more expensive due to increased demand and lingering supply disruptions from the pandemic. The inventor of the market's most famous recession indicator is confident the inverted yield curve is accurately calling a slowdown in 2024. In commodities, bonds, and crypto: West Texas Intermediate crude oil jumped 0.81% to $73.84 a barrel. Brent crude , the international benchmark, climbed 0.73% to $79.13 a barrel. Gold fell 0.21% to $2,025.10 per ounce. The 10-year Treasury yield dropped four basis points to 4.09%. Bitcoin declined by 2.15% to $40,677. Read the original article on Business Insider

2024-01-22 22:44:45+00:00

{"Bitcoin": [3131]}

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Boeing Faces More Pressure as United CEO Vents Frustrations

https://finance.yahoo.com/news/boeing-faces-more-pressure-united-224445032.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- One of Boeing Co.’s biggest customers has lost confidence in the planemaker’s ability to overcome the ongoing quality lapses that climaxed this month with a mid-air emergency on an Alaska Airlines flight. 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 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 United Airlines Holdings Inc. Chief Executive Officer Scott Kirby has been venting his frustrations with management to colleagues and voicing his concerns over the handling of the Max grounding, according to people familiar with the matter. Kirby has stopped short of a direct appeal for change to Boeing’s top brass, while seeking to enlist support to revamp management from a range of parties, the people said, asking not to be named discussing confidential conversations. He has also spoken to US Transportation Secretary Pete Buttigieg over the grounding, which is now heading into its third week. While the White House is monitoring the discussions, there’s no indication yet of what steps the Biden administration would take in response to complaints about Boeing. Buttigieg has been in touch with the planemaker, in keeping with the hands-on approach he’s taken with US airline executives — including Kirby — following service breakdowns. The fulminations targeting the planemaker by the often outspoken Kirby, who has been forced to ground dozens of 737 Max 9 aircraft following the Jan. 5 accident, underscore the pressure on Boeing CEO Dave Calhoun and the company’s directors. The Federal Aviation Administration, which grounded most of the Max 9 fleet and is investigating Boeing production, on Sunday doubled down on its scrutiny of the company, asking airlines to inspect door plugs on an older 737 model. Story continues The Transportation Department doesn’t have legal authority to dictate any changes to Boeing’s leadership, although it can take enforcement actions or other high-profile steps against the company. Boeing’s shares ended regular trading hours Monday little changed at $214.93 and United’s fell about 1% to $38.45. “I’ve conveyed to Boeing leadership the severity of our concerns,” Buttigieg told MSNBC on Jan. 19. While Boeing has pledged to do everything necessary to make sure that anything found is fixed, Buttigieg underscored that FAA intended to carry out a thorough review, adding “that’s not something where we just go off pledges.” The White House deferred comment to the Transportation Department, which had no immediate response. United and Boeing also had no immediate comment. United reported earnings after the close of regular trading in New York. Read more: United Air’s 2024 Outlook Beats Despite Early-Year Hurdles --With assistance from Alan Levin. (Updates with closing shares 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.

2024-01-22 23:00:00+00:00

{"Bitcoin": [6184]}

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Emerging-Market Star Will Be Put to Test as Jokowi’s Exit Looms

https://finance.yahoo.com/news/emerging-market-star-put-test-230000995.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Indonesia’s economy, Southeast Asia’s largest and one of the region’s success stories over the past decade, faces a test of resilience as the country heads into an election next month to vote for President Joko Widodo’s successor. 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 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 The world’s fourth-most populous nation has outperformed other emerging markets since it repositioned itself higher in the global supply chain, focusing on the exports of refined, rather than raw, commodities. The strategy helped support the economy, its trade balance and the currency, while borrowing costs were kept in check due to a tight lid on state budget and price pressures. The next president will have to find a balance in a sharper rivalry between the country’s two biggest export markets, China and the US, with trade links being tested around the globe. The leadership transition will also test whether Indonesia has built enough economic resilience to avoid sliding back into the category once known as the ‘Fragile Five’ group of countries exposed to swings in market sentiment because of their reliance on foreign investment and an economic structure weakened by cronyism and short-sighted decisions. Some of the candidates amplify those concerns. Front-runner Prabowo Subianto represents a paternalistic tradition with Jokowi’s son as his running mate and himself a former son-in-law of the late dictator Suharto. One of his rivals, Anies Baswedan, has called to curb ties with China and to reevaluate industrial policies. Read More: Economists Favor Jokowi Critic as Top Choice to Lead Indonesia Ahead of the Feb. 14 election, we charted five key indicators that paint a picture of the Indonesian economy. Story continues Trade Surplus The shift towards higher-value exports ushered in 44 consecutive months of trade surpluses that brought in dollars to underpin the currency. The rupiah climbed 1.1% against the dollar last year, the third-best performer among Asian currencies. The bid-ask spread in dollar-rupiah — a gauge of market volatility — averaged 6 rupiah since mid-2021 when the trade balance turned consistently positive, from the 8 rupiah average prior to the pandemic. “The diversification of Indonesia’s export base contributed to the relative performance of the rupiah in the face of the bold US interest rate hikes, although higher commodity prices undoubtedly helped,” said Citigroup Inc. economist Helmi Arman. Fiscal Prudence Credit is also due to Jokowi’s economic managers, chief among them Finance Minister Sri Mulyani Indrawati who managed a tight ship even during the pandemic years that required increased government stimulus. Indonesia managed to return the budget gap below 3% by end-2022, a year earlier than promised, and last year narrowed it to the lowest level since 2011. Tough reforms to raise value-added and excise taxes, as well cuts to fuel subsidies, replenished state coffers. Investors will be watching whether the new leader can match Jokowi’s focus on reforms and, more importantly, his ability to execute them, Citi’s Arman said. The next president will also need to find a way to continue the infrastructure rush spurred by state-owned builders that are now saddled with billions of dollars of troubled debt. Lower Default Risk Indonesia’s conservative fiscal stance has reassured credit rating agencies like S&P Global, which lifted the nation back into investment grade in 2019. S&P expects the rating to remain stable for another 12 months while Moody’s Investors Service last year said a durable increase to government revenue can be positive to the country’s rating. Investors may already be betting on an upgrade, with one-year credit default swaps currently below its former peers in the ‘Fragile Five’ and in-line with neighboring South Korea which rating companies see as safer debt. T. Rowe Price considers Indonesian assets a haven among emerging market peers in times of volatility. “The market has been implicitly assuming the bond rating has been upgraded for Indonesia,” said Herman Tjahjadi, chief investment officer at PT BRI Manajemen Investasi. “If you compare the budget deficit, current account and inflation between Indonesia and the BBB+ countries, you would see that Indonesian measures are already better.” Standout Bonds Rupiah bonds have returned an annualized 5.5% for dollar-based investors since Jokowi was elected president in July 2014, far higher than the 0.4% for a broad gauge of emerging market local-currency sovereign debt, according to data compiled by Bloomberg. Returns may be threatened, however, should Jokowi’s successor resort to populist policies and loosen the fiscal constraints. That may see bonds and the rupiah fall, while the impact on stocks will depend on where the cash will be spent, said Vlad Byalik, an emerging markets portfolio manager at Ariel Investments LLC in New York. Rate Moves Indonesia has largely avoided the red-hot inflation that hit many Southeast Asian neighbors. Jokowi empowered central and regional teams to identify supply bottlenecks, shut down cartels, and even help with planting crops. Bank Indonesia Governor Perry Warjiyo has managed to stay ahead of the curve, not averse to surprising investors with outsized and unexpected rate moves to ensure price and currency stability. Warjiyo’s reappointment through 2028 should offer some continuity. While a 2022 law to expand the central bank’s mandate to include economic expansion raised concerns about the central bank’s autonomy, policymakers have resisted the temptation of prematurely cutting rates to spur growth. The key rate was kept at a four-year high of 6% this month, and the BI has signaled that it would be patient in easing to ensure inflation is firmly under control. 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.

2024-01-22 23:21:31+00:00

{"Bitcoin": [2186]}

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CD&R Seeks to Exit Core & Main Stake Via Share Sale

https://finance.yahoo.com/news/cd-r-seeks-exit-core-232131642.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- Clayton Dubilier & Rice is set to sell the last of its stake in Core & Main Inc., people familiar with the situation said. 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 An unnamed group of shareholders is offering to sell 19.8 million shares in the distributor of products such as water pipes and fire sprinklers, according to a press release Monday. The unnamed sellers are seeking to raise as much as $827.6 million from the sale, the people said, asking not to be identified as the information is private. The shares were marketed in a price range of $41.35 to $41.80 each, the people said. The private equity firm had controlled about 80% of the shares in St. Louis-based Core & Main following its $802 million listing in 2021, according to filings with the US Securities and Exchange Commission at the time. CD&R has been reducing its Core & Main shareholdings in a series of transactions by its affiliates beginning in 2022, SEC filings show. It owned about 8.65% of Core & Main’s shares as of Jan. 10, according to data compiled by Bloomberg. A representative for CD&R declined to comment, while a Core & Main spokesperson didn’t immediately respond to a request for comment. Shares of Core & Main closed Monday at $41.80 each, giving it a market value of $9 billion. The shares fell to $39.49 each at one point in aftermarket trading before rebounding to $41.73. Concurrently with the latest offering, Core & Main plans to repurchase and redeem 3.13 million shares and 1.87 million partnership interests of its subsidiary from the selling shareholders, according to the press release. JPMorgan Chase & Co. and Citigroup Inc. are the arrangers of the deal, the release shows. Story continues (Updates throughout with identification of CD&R as seller.) 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.

2024-01-22 23:30:37+00:00

{"Bitcoin": [5529]}

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Samsung races Apple to develop blood sugar monitor that doesn't break skin

https://finance.yahoo.com/news/samsung-races-apple-develop-blood-233037141.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) — Samsung Electronics Co. is exploring the development of noninvasive glucose monitoring and continuous blood pressure checking, setting its sights on ambitious health-care goals in a race with Apple Inc. and other tech giants. 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 India Tops Hong Kong as World’s Fourth-Largest Stock Market Morgan Stanley, JPMorgan Say Buy the Dip After Treasury Rout The work is part of a broader push to put health features in a range of devices, including its just-announced Galaxy Ring, said Samsung executive Hon Pak, who is overseeing the effort. The company aims to eventually give consumers a complete picture of their well-being via sensors on different parts of the body and around the home. Health tracking is already a key selling point of smartphones and watches, with Samsung, Apple and Alphabet Inc.’s Google using the features to attract and retain customers. Creating sensors for continuous blood pressure tracking and glucose monitoring would be particularly valuable breakthroughs. Apple has been working for years on a glucose reader that wouldn’t require users to prick their skin for blood — a potential boon for millions of diabetics. “If we can do continuous blood pressure and glucose, we’re in a whole different ballgame,” Pak, Samsung’s mobile digital health chief, said during a wide-ranging interview. “I think that’s where everyone is trying to get to. We’re putting significant investment toward that.” Samsung Galaxy smartwatch. (Bloomberg) He wouldn’t comment on a timeline for either feature, but said he hopes noninvasive glucose monitoring could come to the market in some form within five years. “We are looking at everything from miniaturization to the various different technology platforms that can do some type of glucose monitoring or anything in between,” Pak said. Story continues The remarks follow Samsung’s announcement last week that it’s working on a ring with health sensors. The Galaxy Ring product is scheduled to be released before the end of 2024 and will come in a range of colors and sizes, Pak said. The company is eyeing activity and sleep tracking for the ring, with more health features to come later. Smart rings from companies like Oura offer an alternative for people who don’t like to wear a watch but still want to track their health metrics and sleep patterns. “The ring represents that community of people who want health tracking that is more comfortable and less obtrusive,” Pak said. “It’s meeting a need of a specific population of people who want to track and measure, but in a different way.” Pak said Samsung hasn’t finalized pricing on the Galaxy Ring, but — like the company’s Galaxy Watches — it probably won’t be compatible with Apple’s iPhone. Developing a blood sugar monitor would be a more challenging task, but one that could have major rewards. Current products on the market typically require a blood draw or a prick in the skin — an obtrusive process. Apple has been working on a noninvasive approach since around 2010 and has since made major progress, Bloomberg News has reported. Even so, a product remains years away. Read More: Apple Has Plans to Eventually, Maybe Revolutionize Health-Care The two companies also are working to improve blood pressure monitoring. Samsung smartwatches have long offered the ability to determine a user’s blood pressure, but the monitoring isn’t constant throughout the day and requires calibration against a standalone blood pressure checker. Pak said Samsung is “evaluating all options” to improve its blood pressure features. The aim is to go longer without needing calibration. “We’ve been thinking long and hard about this,” he said. Apple, meanwhile, is planning to add hypertension detection to its smartwatch later this year in a way that doesn’t require calibration but also doesn’t provide exact readings. Instead, the watch will inform users that they may have elevated blood pressure. Apple’s expansion into health technology hasn’t gone entirely smoothly. It recently pulled a blood oxygen feature from the Apple Watch after a legal setback in its patent dispute with Masimo Corp. An Apple smartwatch. REUTERS/Eduardo Munoz (Reuters / Reuters) Pak said traditional blood pressure readings aren’t “really that meaningful” other than showing a range of normal and abnormal. “Whether it’s Apple or others, I think we are trying to redefine blood pressure in a way that it was originally intended, which is: How much cardiovascular risk do you have?” he said. Samsung also is exploring a range of different sensors for future versions of its earbuds. The company is studying new ways to measure body temperature and heart rates, adding that the ear is a closer pathway to the heart than the wrist. Data from the ear could be combined with wrist and ambient data to provide users with a more comprehensive picture of their health. Mixed-reality headsets could be a new frontier for health as well, Pak said. Apple is poised to release its first product in that market next week when the Vision Pro goes on sale for $3,499. Meditation and mental health could be key areas for such devices, he said. “We are right now looking at partnerships to address that,” Pak said. 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.

2024-01-22 23:43:48+00:00

{"Bitcoin": [3850]}

{}

Winners of China’s 2023 Coal-Buying Bonanza Face a Tougher Year

https://finance.yahoo.com/news/winners-china-2023-coal-buying-234348401.html

Bloomberg

https://www.bloomberg.com/

(Bloomberg) -- China’s coal-buying bonanza last year benefited suppliers of higher-grade fuel the most, but 2024 is likely to prove more challenging for imports generally as the world’s biggest buyer dials back its requirements. 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 Imports surged 62% in 2023 to an unprecedented 474 million tons as the government supplemented record production at home to prevent blackouts that have afflicted the economy in recent years. While all of the main exporters saw substantial growth, the latest customs figures show better-quality suppliers drawing the biggest gains as China’s own grades deplete and domestic output of steelmaking coal suffered an outsized impact from a spate of fatal mining accidents. The return of high-grade Australian coal was most notable after Beijing ended its ban on shipments due to improved relations between the two countries. But Mongolian imports of largely coking coal for steel also more than doubled thanks to railway extensions that have eased transport bottlenecks. That squeezed gains for China’s other main suppliers, Russia and Indonesia. China’s swollen inventories of coal for power generation kept a lid on Indonesia’s share in particular, given that much of the fuel from the Southeast Asian nation is of the lowest grade. All of China’s suppliers will have to contend with a well-stocked market this year, as well as pressure to curb consumption of the dirtiest fossil fuel amid a massive expansion in clean energy sources. But a third headwind for suppliers — the restoration of import duties at the start of the year — will affect exporters differently. Indonesia and Australia are both excluded from the taxes due to free-trade pacts with Beijing, while Mongolia is shielded somewhat because of China’s relative lack of domestic coking coal. That leaves Russia as probably most vulnerable, although Moscow has recently scrapped its own export taxes on the fuel in a bid to maintain competitiveness. Thermal coal prices at the trading hub of Qinhuangdao are expected to drop this year to an average of 850 yuan ($118) a ton, SDIC Essence Futures Co. forecast earlier this month. The benchmark was last quoted at 912 yuan a ton. The broker also said it expects overseas purchases to fall 3.5% as strong demand from India squeezes sales to China and the import taxes take effect. Story continues The Week’s Diary (All times Beijing unless noted.) 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 has relaunched its long-stalled voluntary carbon offset market, offering funding to projects with the potential to curb emissions but which struggle to generate profits. China will need to “respond” to the US’s efforts to choke it of chip supplies, Beijing’s ambassador in The Hague said in an interview with a Dutch newspaper. But there is no need for the European Union to get swept up in the fight, he said. China’s Premier Li Qiang asked authorities to take more “forceful” measures to stabilize his country’s slumping stock market and investor confidence, after the mainland’s benchmark CSI 300 Index hit a five-year low on Monday. 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