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The big cigarette company now owns 20% of OrganiGram, following the latest major deal in the pot industry.
The big cigarette company now owns 20% of OrganiGram, following the latest major deal in the pot industry.
(Bloomberg) -- A cohort of chart watchers on Wall Street say Bitcoin’s deepest selloff since crypto mania kicked off last year looks set to intensify.Evercore ISI’s Rich Ross reckons prices are destined to fall back to the 200-day moving average, following a path of other speculative assets, which would put Bitcoin back at $40,000 compared with just under $44,000 currently.Others are watching for a pattern of “lower highs and lower lows” and say Elon Musk’s unpredictable tweets will keep traditional investors on the sidelines. There’s also speculation that gold is starting to draw money away from crypto.“The momentum has now quite decisively shifted to the bears,” said Tallbacken Capital Advisors LLC Chief Executive Officer Michael Purves, who correctly predicted last month that Bitcoin would decline.Elon Musk Is Now Blowing Up the Wall Street Case for BitcoinBitcoin is still up more than 300% since last May, but the speed of the recent rout has shaken crypto’s new believers and cast doubt on the idea that it’s maturing into a more stable asset class. Prices have fallen about 30% from intraday highs in April, when prices topped $64,000.Purves says the next important level for Bitcoin is $42,000 because it roughly equates to where the rally topped out in January and a 50% retracement from December 2020 levels. If Bitcoin breaks through that level, more losses are ahead, but if prices can hold above the support, then it might be the beginning of a new rally, Purves predicted.“A pullback was bound to happen,” said Justin Chuh, a senior trader at Wave Financial, which invests in crypto assets. “This is healthy, but I think we all wish this didn’t happen.”The counterpoint comes from Fundstrat Global Advisors. In a note on Monday, strategist David Grider laid out nine reasons explaining why he thinks prices are primed to bounce, including high levels of short interest and the fact that corrections like this tend to be normal in a crypto bull market.“We don’t know the future, but we think odds are we’re close to the bottom and don’t want investors to ‘panic sell’ here,” Grider wrote.Anchorage Digital Bank, which runs a digital asset platform for institutional investors, said it’s seeing clients maintain or increase crypto holdings. “They’re looking at this as good entry point,” said Diogo Monica, president and co-founder of the California-based bank.Other chart watchers are turning to ETFs as a proxy for where the crypto market is headed. SentimenTrader’s Dean Christians is monitoring a blockchain-focused fund called Amplify Transformational Data Sharing ETF.“I would watch the breakdown pivot point at $48.75,” he wrote in a note Monday. “If it fails to recover above that level, take note.”(Updates prices.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The European Union's executive on Tuesday adopted a plan for a more unified corporate tax regime across the bloc, whose 27 national systems are struggling to cope in a world where cross-border business, often via the Internet, is commonplace. Under its proposal, certain large companies operating in the EU would have to publish their effective tax rates to ensure greater transparency, and there would be new anti-tax avoidance measures to tackle the abusive use of shell companies. "It's time to rethink taxation in Europe," Paolo Gentiloni, European Commissioner for the economy, said in a statement.
“Widespread adoption of CBDCs may be disruptive for financial systems if associated risks are not managed,” warn Fitch Ratings analysts.
Stock indexes were lower globally on Monday with technology shares on Wall Street falling, while U.S. Treasury yields traded little changed even after a report showing the highest prices ever paid in a May manufacturing survey for New York State. The S&P 500 technology sector was down 0.9% and was the biggest drag on the benchmark index. Concerns over inflationary pressure helped to lift gold prices to their highest in more than three months, however.
(Bloomberg) -- The Federal Reserve may be fretting over the speculative euphoria in crypto, SPACs and meme stocks, but plenty on Wall Street see bubble risks growing across all the systemically important assets.Everything from European bonds and U.S. Treasuries to high-yield credit and tech stocks is trading near the highest valuations in decades -- even as the inflation bogeyman risks breaking out at long last.Market participants from Goldman Sachs Group Inc. to BlackRock Inc. are divided on whether all this constitutes an unsustainable frenzy. To Dan Fuss, the legendary 87-year-old vice chairman at Loomis Sayles & Co. LP, it certainly looks that way thanks to unprecedented liquidity that is now set to tighten on good economic news.Meanwhile, Kathy Jones of Charles Schwab & Co. is telling clients to beware the “nuttiness” in junk debt. And JPMorgan Asset Management’s Bob Michele is calling on Fed officials to discuss tapering asset purchases soon enough, before market bubbles form.Others are more sanguine -- betting that the economic reopening and the re-leveraging cycle will pave the way for more cross-asset gains.Interviews have been edited for clarity.Dan Fuss, vice chairman, Loomis Sayles“We are in ‘bubble’ territory. It is primarily a liquidity bubble, combined with the resulting valuation distortion. Stocks with high P/Es, marginal credit bonds, and pooled vehicles are the most vulnerable. In the 1960s and 1970s, I was lucky enough to spot the small stock valuation bubble and the growth stock bubble. The similarity between then and now was valuation. This one is a liquidity bubble that is unique in my experience.The markets are awash in liquidity caused by the central bank supporting the Treasury’s needs in fighting the Covid war. It is slightly analogous to the formal accord of the late 1930s to mid 1950s between the Fed and the Treasury. It is different in that it caused layers of increased liquidity as various market participants can borrow shorter term money cheaply.When prices decline somewhat, there can be, as there was last March, a magnified drop in the liquidity, causing more sales. This can destabilize the broader market.”Kathy Jones, chief fixed-income strategist, Charles Schwab“We are warning people about not overdoing it. We are saying it’s OK to hold high yield but to try not to hold a concentrated position at the low end and realize this can change pretty fast. This is when diversification really helps you, when things are a little nutty like this, and you don’t know when the nuttiness will end.When I look at CCC’s rallying so hard -- even if the default rates are at the low end of historical average -- your chances of making money over the long run aren’t great. You’d be lucky to break even.”Bob Michele, CIO, JPMorgan Asset Management“My biggest concern is that the Fed waits too long to start the normalization process. Their view is that there is a reopening surge that creates a short term spike in inflation, but it will be transitory. If they’re wrong, that’s when things could become painful.The economy and markets would binge on the prolonged period of cheap money and the risk of bubbles would be far greater. They would be forced to take away the proverbial ‘punch bowl’ by tightening monetary policy more aggressively than the markets expect.I don’t want to be involved in that experiment of owning negative real yields and hoping the Fed can manage an unusually complex normalization process by letting the economy and inflation run hot for a period of time! Consequently, we’re using rallies to sell duration.”“I’m inviting the Fed to start the normalization process now. They should start the conversation on tapering QE no later than the August Jackson Hole meetings. I never thought in my career I would be asking the Fed to begin withdrawing liquidity from the system. But I’m asking because growth and inflationary pressures are just too high.They should start actual tapering no later than January 2022 and then start raising rates no later than mid 2023. There is no reason for them to be running the same level of accommodation as a year ago.”Elga Bartsch, head of macro research, BlackRock Inc.“Markets are not in bubble territory, but they are in unusual terrain given that we are in an economic restart, not a regular business-cycle recovery. For the Fed to move faster than indicated by market pricing, it would essentially need to abandon its new policy framework, which it adopted only last August.We deem this unlikely and see a later lift-off for rates than the market. One pre-condition for the emergence of bubbles is the build-up of financial imbalances. Prior to Covid-19 there was little indication of such imbalances. Since then private sector balance sheets have become stronger, not weaker.”Read more: Fund That Made 929% on Equities Crash Targets Big Short in BondsVineer Bhansali, founder, LongTail Alpha“Bonds are in a massive bubble that we’ve never seen the likes of and inflation, which is the biggest risk to bonds, is coming back. My biggest worry right now is if there’s suddenly a sharp rise in yields, especially in Europe and Japan.I’m massively short the bond market. A big rise in rates can upend everything. If the thing you are counting on to protect you is not protecting you and it’s hurting you, you are going to have to start liquidating -- your Bitcoin, your equities and more. There will be collateral damage.Everybody is counting on the Fed to keep stepping in and buying bonds. At some point the Tsunami may just wash them and they have to say we just can’t buy any more. That to me is the biggest danger.”Peter Oppenheimer, chief global equity strategist, Goldman Sachs“There are pockets of over optimism and excessive valuations in equities. But the key thing is whether this is broad enough in its manifestation to become systemically risky. I would say that there isn’t really a strong evidence of that yet. We may have high multiples, but they are not that high when you consider where interest rates are.We don’t have huge leverage in the private sector. We found that private sector leverage is a very common driver of financial bubbles. Households have very strong savings and they don’t have high levels of leverage. That’s true for banks as well. We expect global growth to accelerate strongly and in a synchronized way. We are overweight stocks and commodities and underweight bonds.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
‘Will she still be able to use our daughter as a tax deduction? My concern is also with the coming child tax credit this summer.’
A paper that my colleague Anqi Chen and I wrote last year — “How Much Taxes Will Retirees Owe on Their Retirement Income?” — keeps hitting the “top 10” list on a major listserv for social sciences research. As people approach retirement, they tend to add up their financial resources — Social Security benefits, defined benefit pensions, defined contribution balances, and other assets. The question we look at is just how large the tax burden is for the typical retired household and for households at different income levels.
USD/CAD received support above 1.2000 and rebounded towards the resistance at 1.2080.
AT&T's stock is the biggest loser in the S&P 500 on Tuesday. Its valuation depends on how much credit investors give the combined WarnerMedia/Discovery for its future streaming efforts.
Experienced hands look to be buying the dip as a key bitcoin price indicator suggests the pullback may be coming to an end.
The Biden administration has announced payments will be starting this week.
Amid the slump sweeping across crypto assets Tuesday, investors were turning their attention to a meme asset, SafeMoon, that has garnered increased attention was recently drawing fresh looks after comments made by Barstool Sports founder Dave Portnoy on Twitter.
Learn the basic structure of a 401(k) and why it may not be enough to sustain you during retirement.
Raoul Pal tells bitcoin investors that current volatility is to be expected, but big things are around the corner.
‘Everybody wants to have asset prices forever going up and the cost of financing to be next to nothing,' Kerry Killinger says.
SafeMoon debuted its cryptocurrency in March, claiming to solve common problems that plague Bitcoin, Ethereum, and Dogecoin.
(Bloomberg) -- Bitcoin and other major cryptocurrencies slumped after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment.The largest cryptocurrency fell as much as 5.3% to $42,430 in New York, continuing a week-long slide sparked by Elon Musk’s back-and-forth comments on Tesla Inc.’s holdings of the coin. Bitcoin is now at its lowest level since early February. Ether lost more than 7%, while last week’s sensation, Internet Computer, continued its plunge. Dogecoin also slid.“This is the latest chapter of China tightening the noose around crypto,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.Virtual currencies should not and cannot be used in the market because they’re not real currencies, according to a notice posted on PBOC’s official WeChat account. Financial and payments institutions are not allowed to price products or services with virtual currency, the note said.Beijing since 2017 has abolished initial coin offerings and clamped down on virtual currency trading within its borders, forcing many exchanges overseas. The country was once home to about 90% of trades but the lion’s share of mining and major players have since fled abroad.Read more: Bitcoin Chartists See Rout Worsening With $40,000 in FocusChina has recently taken steps to issue its own digital yuan, seeking to replace cash and maintain control over a payments landscape that has become increasingly dominated by technology companies not regulated like banks.“It’s no surprise to me, as Chinese capital controls can be challenged by cryptocurrency purchases in the country and transfers out of the country,” said Adam Reynolds, CEO for APAC at Saxo Markets. “So avoiding use of them in the country is essential to maintaining capital controls. The only tolerable digital currency to a government with strong capital controls is their own CBDC.”Many chartists and technical analysts are looking at Bitcoin’s 14-day Relative Strength Index (RSI), which entered oversold levels Tuesday. In addition, an acceleration in its selloff could mean the coin approaches its next support around $40,000. A fall to that level would mark the first time since September that Bitcoin would test its average price over the past 200 days. And breaching it could mean it drops to $30,000, where it’s previously found support.For Stephane Ouellette, chief executive and co-founder of FRNT Financial, the moves have more to do with Musk’s recent tweets about Bitcoin.“It’s just a bit of a mess. TSLA’s entrance into the space saw some of the most aggressive BTC buying I’ve personally ever seen -- and it has to unwind,” he said. The EV-maker’s retraction that it will accept Bitcoin as payment “was the catalyst that accelerated the spread consolidation. Then over the weekend, little comments here and there have continued to confuse.”Meanwhile, the latest Bank of America fund manager survey showed that “Long Bitcoin” is the most crowded trade in the world right now. The poll captures 194 fund managers with $592 billion worth of AUM overall.“The fact that the BofA manager survey shows that the ‘long Bitcoin’ trade is the most crowded one on the Street right now isn’t helping either,” said Matt Maley, chief market strategist for Miller Tabak + Co. “When an asset becomes the most crowded trade in the BofA survey, it has frequently signaled a near-term pullback in the past. When you combine this with the news out of China, it’s not a surprise that Bitcoin is seeing some more weakness.”(Updates throughout, adds technical analysis, adds Ouellette comments)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
GameStop and AMC overcame rocky starts to the trading day as comments on social media surged and retail traders mused once again about “squeeze"s on both stocks.
The payments will reach more than 65 million children, according to senior administration officials.
The legislation would outlaw penalizing taxpayers until the IRS clarifies its policies.