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Peloton Interactive Cl A shows rising price performance, earning an upgrade to its IBD Relative Strength Rating from 80 to 84.
(Bloomberg) -- Beijing threw the spotlight on trade tensions with its top commodities supplier, Australia, after the government’s economic planning agency said it’s looking to diversify China’s supply of iron ore.Chinese firms should boost domestic exploration for the steel-making input, widen their sources of imports, and explore overseas ore resources, the National Development and Reform Commission said at its monthly briefing.The NDRC also said Australia should stop damaging economic and trade cooperation with China and take measures to promote the healthy development of bilateral ties.Iron ore is Australia’s biggest export earner, and relations with Canberra have taken a turn for the worse in recent weeks. But adding the mineral to a raft of curbs already in place on Australian commodities would be a risky move given near-record prices and China’s dependence on Australia’s high-quality supply for about two-thirds of its imports.“While an outright ban would be almost unimaginable, various forms of restrictions, delays or increased administrative burdens on Australian iron ore imports could yet happen,” Wood Mackenzie said in a recent note.Chinese industrial commodities prices powered on, meanwhile, recovering much of their poise after last week’s pullback.Citigroup said further gains for markets like steel, aluminum and coal are supported by solid demand and a policy agenda that includes “domestic production crackdowns for environmental, energy and safety control purposes,” according to a note from the bank.At the same time, an acceleration in credit tightening is unlikely in the foreseeable future after the central bank expressed only limited concern about the surge in commodities prices feeding through into CPI, Citigroup said.Otherwise, the day’s agenda is led by China’s agricultural imports for April. Purchases of corn, wheat and sorghum are likely to stay elevated, as China’s buying binge continues to help fuel a global grains rally.Events Today(All times Beijing unless noted otherwise.)China’s 2nd batch of April trade data, incl. agricultural imports; LNG & pipeline gas imports; oil products trade breakdown; alumina and rare-earth product exports; bauxite, steel & aluminum product importsLONGi Green, Goldwind execs among speakers at Macquarie Group conference in Hong KongEARNINGS: Daqo New EnergyToday’s ChartChina’s data dump for April suggests the economy’s expansion may have plateaued as policy makers seek to rein in commodities-intensive spending on real estate and infrastructure before new growth drivers of consumer spending and manufacturing investment have recovered.On the WireShaanxi province, China’s third-biggest coal producing region, hit a clean energy milestone last month when generation from renewables briefly topped thermal power for the first time.In a town on the edge of the Gobi desert is a sign in English and Chinese that reads “Oil Holy Land.” Nearby, a preserved drilling rig marks the spot of China’s first commercial oil well.JinkoSolar Announces Change to Senior ManagementChina Is Drafting Carbon Peaking Plans for Steel, Power SectorsAsian Copper Stocks Rise on Top Producer Chile’s Election ResultHuadian Power Downgraded to Sell by Citi on Rising Coal CostsBank of China, Citigroup, BNP Lead Green Bond Offshore MarketCGN Wind Energy Adds Zhejiang Province’s Largest Offshore FarmGCL-Poly Energy Says Deloitte Touche Tohmatsu Resigns as AuditorBrazil Iron Ore Miners Seen Lifting Output Coming Months: IbramChina’s Tapering of Monetary Stimulus Could Pop Oil Price BubbleThe Week AheadWednesday, May 19China’s monthly loan primes rates, 09:30China’s April output data for base metals and oil productsHOLIDAY: Hong KongThursday, May 20China’s 3rd batch of April trade data, including country breakdowns for energy and commoditiesSMM battery materials conference in Changsha, Hunan, day 1USDA weekly crop export sales, 08:30 ESTFriday, May 21Ganfeng Lithium, EVE Energy, Huayou Cobalt execs among speakers at Macquarie Group conference in Hong KongChina weekly iron ore port stockpilesShanghai exchange weekly commodities inventory, 15:30SMM battery materials conference in Changsha, Hunan, day 2AGMs: Cnooc, Tianqi Lithium, CATLMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(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 5.1% to $42,547 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.
(Bloomberg) -- Michael Burry, the investor who rose to fame for making billions off bets against mortgage securities during the financial crisis, has placed a sizable wager against Elon Musk’s Tesla Inc.Burry’s Scion Asset Management owned bearish puts against 800,100 shares of the electric-car maker as of March 31, according to a regulatory filing Monday. The puts give Scion the right to sell Tesla shares on or before an unidentified date in the future.Tesla shares closed at an all-time high of $883.09 on Jan. 26, after a yearlong rally jolted the stock higher by almost 700%. It had lost a quarter of its value by the end of March, and is down 35% from its peak as of the close Monday.The bet against Tesla isn’t Burry’s first. He said in a since-deleted tweet in early December that his firm was short shares of the EV maker. The hedge fund manager also advised Musk to sell shares to raise capital while his stock, then on a torrid run from the pandemic lows, was at what Burry called “ridiculous” levels.Tesla earned record profit in the first quarter, sidestepped an industry chip shortage, improved its manufacturing and even made money off Bitcoin, its earnings results showed in late April. Yet shares fell in a sign of the lofty expectations the company now contends with. Among the quibbles from analysts: Tesla didn’t offer a specific estimate for vehicle deliveries in 2021.It’s impossible to know when Burry’s Scion made the bets against Tesla, at what price the puts are in the money and how much the firm paid for them. The filing, a quarterly rundown of holdings required of hedge funds of a certain size, said the position was worth $534 million -- an amount likely derived by multiplying Tesla’s share price on March 31 by the number of shares Scion bet against.“Tesla is down 14% since the end of the first quarter, so on balance, these puts have been profitable, though it’s impossible to know for sure,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “He’s expressing the type of skepticism that many have on Tesla. I would have to believe that he accumulated various Tesla options at various strikes, and some of them probably have expired.”Burry was played by Christian Bale in the film version of Michael Lewis’s best-selling account of the 2008 financial crisis, “The Big Short.”(Updates with quote in seventh paragraph)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. exited a bet on Synchrony Financial during the first quarter as the company continued to pare back its investments in financial firms.Berkshire reported Monday that it no longer held any shares in Synchrony, a bet that had totaled nearly $699 million at year-end, and trimmed its Wells Fargo & Co. holding to just over 675,000 shares as of March 31. It added shares in insurance broker Aon Plc, which is seeking to close a deal with rival Willis Towers Watson Plc.Buffett’s company has spent the last year revamping its holdings in financial firms, sticking by a massive stake in Bank of America Corp. valued at $39.1 billion, while exiting investments in JPMorgan Chase & Co. and Goldman Sachs Group Inc. A more than three-decade investment in Wells Fargo, which once ranked as the company’s largest common stock bet, has been slowly disappearing in recent years and totaled just $26.4 million at the end of the first quarter.Meanwhile, Berkshire has dug even deeper into the insurance-brokerage industry. The bet on Aon, disclosed in a quarterly filing, comes just months after Berkshire revealed a stake in its rival Marsh McLennan. Aon and Willis Towers Watson have agreed to sell some assets to help ease regulatory concerns around their proposed combination. The Aon holding was valued at about $943 million at the end of the first quarter.In February, Berkshire disclosed three bets, including the Marsh McLennan stake, that it had been building up in secret. The company then spent the first quarter taking those bets in different directions, ramping up its stake in Marsh McLennan and Verizon Communications Inc. while cutting a Chevron Corp. holding roughly in half.Buffett and two of his key deputies, Todd Combs and Ted Weschler, oversee investments for the conglomerate’s $282 billion stock portfolio. The firm ended up increasing two other bets -- a stake in Kroger Co. and a holding in furniture company RH -- during the first quarter.(Updates with stake sizes, Verizon, Chevron, Kroger and RH starting in second paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Berkshire Hathaway Inc has sold nearly all of its holdings in Wells Fargo & Co, as Warren Buffett abandoned a more than 31-year-old investment that had been among his most successful before the bank was felled by scandals for mistreating customers. In a regulatory filing on Monday, Berkshire said it owned just $26.4 million of shares in the fourth-largest U.S. bank as of March 31, down from around $32 billion in January 2018.Berkshire began investing in San Francisco-based Wells Fargo in 1989, and spent at least $12.7 billion on its shares, building a 10% stake.The bank's reputation was shattered by revelations that employees facing aggressive sales goals opened millions of unwanted accounts, charged unnecessary mortgage fees and forced drivers to buy car insurance they did not need.
Oxford analysts are now warning that OPEC+, largely responsible for the recovery in crude markets, could see its efforts thwarted once again by chief rival: U.S. shale
The crypto lender is entering Bitcoin mining in the midst of a boom in North America’s bitcoin mining industry.
(Bloomberg) -- Alibaba Group Holding Ltd. and partners are investing $400 million in Vietnamese conglomerate Masan Group Corp.’s retail arm, a deal that will expand the Chinese e-commerce giant’s online groceries business in Southeast Asia.Alibaba and Baring Private Equity Asia are leading a consortium that will take a 5.5% stake in The CrownX, which holds Masan’s interests in Masan Consumer Holdings and VinCommerce, while the conglomerate will own 80.2% of the firm following the investment, according to a statement Tuesday. The deal implies a pre-investment valuation of $6.9 billion for The CrownX, the statement showed.Masan is in advanced talks with other investors on a further investment of $300 million to $400 million into The CrownX that is expected to close in 2021, the company said. Shares of the Vietnamese corporation rallied as much as 2.7% in early trading Tuesday.As part of the deal, the Vietnamese retail firm will team up with Alibaba’s Southeast Asian unit Lazada to expand its digital business in the country. Jack Ma’s corporation is seeking to expand its foothold in Southeast Asia, home to more than 650 million people, as competition and regulatory scrutiny intensify in its home market of China. Vietnam’s digital economy is forecast to grow to $52 billion by 2025, an annual 29% increase from 2020, according to estimates by Bain & Co., Google and Temasek.“The move should strengthen Lazada’s competitive position by broadening its offerings in groceries, similar to the RedMart acquisition in Singapore,” Bloomberg Intelligence senior analyst Vey-Sern Ling said. “The Southeast Asia e-commerce markets are nascent and Alibaba will probably invest much more in the future, especially since competition in the region is increasing.”VinCommerce will provide groceries to Lazada’s e-commerce platform in Vietnam and turn its physical stores into pick-up points for online orders, according to the statement. Groceries account for half of the country’s retail market and a quarter of consumer spending, but online penetration is still nascent, the statement said.“Our immediate priority is to modernize Vietnam’s grocery market and develop an unparalleled consumer proposition from assortment to shopping experience,” said Danny Le, chief executive officer of Masan Group.Masan Group is controlled by Vietnamese tycoon Nguyen Dang Quang. Founded in 1996, the Ho Chi Minh City-based firm is best-known for its fish sauce which it sells under brands including Chin-Su and Nam Ngu, according to its website. It has interests in retailing and mining as well as a stake in Vietnam Technological & Commercial Joint-Stock Bank, commonly known as Techcombank. Its VinCommerce arm operates one of the country’s largest convenience store chains.The CrownX is targeting online gross merchandise value to account for at least 5% of total sales in the coming years.(Updates with Masan’s share performance in third paragraph, analyst comment in fifth paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Jaguar Land Rover’s Indian owner reported a pretax profit for the three months through March as a recovery in Chinese demand lifted sales of the automaker’s luxury sports cars and SUVs.Tata Motors Ltd. posted fourth-quarter earnings of 57 billion rupees ($23 million) before tax and one-time items on Tuesday, rebounding from a loss of 65 billion rupees a year earlier. Revenue soared 42% and exceeded estimates.JLR’s improving sales performance is crucial for Mumbai-based Tata as the group’s Indian business is being buffeted by the surge in coronavirus cases gripping the country. Government-imposed lockdowns have shuttered sales outlets and halted factories’ production lines.“While demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from Covid-19 lockdowns in India and semiconductor shortages worldwide,” Tata said in a statement.Charge TakenThe group booked a 1.5 billion-pound ($2.1 billion) charge initially flagged in February related to JLR’s shift to electric models, though its net loss still narrowed.Tata Motors closed 3.5% higher before the company released earnings. The stock is up 80% this year.Jaguar Land Rover posted a pretax profit of 534 million pounds in the quarter after selling 12% more vehicles. Sales more than doubled in China and increased 10% in North America.All model ranges except Jaguar-brand autos were back to pre-Covid levels in the quarter, lifting JLR’s market share to 6%. That was up from 4.4% in the first three months of the financial year, with the new Defender sport utility vehicle spurring gains.Chip IssueThe global shortage of semiconductors has affected JLR since the quarter ended, forcing the carmaker to suspend production at its Castle Bromwich and Halewood plants for a limited period.The company is working with suppliers to resolve the issue, though Chief Financial Officer Adrian Mardell said it could contribute to a small Ebit loss in the current quarter, which is always JLR’s weakest for cash flow. He reiterated full-year cash and profit-margin targets.JLR is staging a recovery after wrangling with uncertainty over Brexit and stricter emissions limits in the past few years. Chief Executive Officer Thierry Bollore has outlined plans to cut costs by 2.5 billion pounds and reduce headcount by 2,000 while accelerating an electrification drive.The company said it has reduced expenses to lower its breakeven point to 400,000 vehicle sales a year, from 600,000 in 2019.Tata said its own operations will show a “relatively weak” performance in the current quarter as the Covid-19 outbreak hampers production and commodity prices increase. It expects a gradual improvement later in the year.(Updates with sales details in the eighth paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(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.
(Bloomberg) -- Hedge funds deepened their bearish wagers against technology companies, betting the pain is just getting started for this year’s worst stocks.As computer and software makers led the market carnage last week, professional speculators sold the shares at the fastest pace in more than five years, driven entirely by shorts, prime broker data compiled by Goldman Sachs Group Inc. show. A similar trend played out at Morgan Stanley, where bearish positions among hedge fund clients jumped the most this year, led by tech stocks.Sentiment is souring toward what were once the market’s darlings. Beloved last year because of their ability to cater to stay-at-home demand during pandemic lockdowns, tech is now under threat as the economy reopens and corporate profits bounce back for everyone from banks to automakers.Another bear case holds that rising Treasury yields will make the sector’s rich valuations harder to justify. The Nasdaq 100’s multiple of 26 times forecast earnings may be the lowest in 12 months, but that doesn’t mean it’s low by historical standards -- or cheap enough to keep short sellers away from an industry that’s already this year’s worst performer.Even after the latest selloff, the Nasdaq 100 trades at a P/E premium to the S&P 500 that’s above the 10-year average.“We still don’t think the pain in big tech is done,” said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets. “Eventually, attractive valuations seem likely to bring buyers back to the space given strong fundamentals, but that condition simply hasn’t materialized yet.”Skepticism over tech stocks has grown in recent months, allowing hedge funds to pick back up a strategy that was all but left for dead in the wake of the meme-stock mania. While stocks have recovered from the most recent rollover, sellers seem to emerge with every bounce. On Friday, when the Nasdaq 100 rallied more than 2%, the biggest exchange-traded fund tracking the benchmark saw $1 billion of outflows.Professional investors are turning more cautious on the sector. At Goldman Sachs, fund clients held the lowest tech exposure since last November relative to the market. When compared with the past five years, their positioning was lower than 98% of the time.In Bank of America’s monthly survey of money managers, released Tuesday, tech allocation stood at an all-time low while money flowed to stocks seen as benefiting more from the economic rebound, like banks.“Cyclical rotation continued in May,” BofA strategists led by Michael Hartnett wrote. “Pessimism on tech has increased.”The caution is paying off. For the first time since the 2000 internet bubble burst, technology is on course to trail all other major industries in the S&P 500 on a yearly basis. And a basket of the most-shorted tech stocks is on track to fall four months in a row, handing bears the longest stretch of wins since 2017, according to data compiled by Goldman Sachs.To be sure, all the doubts can be framed as something that bodes well for the market. For months, one big looming risk has been the euphoric sentiment that even caught the attention of the Federal Reserve. The fact that bears are creeping back adds to a string of evidence that panic buying may be cooling.Indeed, exuberance is abating among both pros and amateur traders. According to a survey by the National Association of Active Investment Managers, exposure last week fell to a 13-month low, sitting at a level that was less than half the peak readings reached in January. Meanwhile, day traders showed signs of fatigue, with measures of their activity in the options market retreating to the lowest levels since November, data compiled by Susquehanna International Group show.“Up until last week, there was a credible argument that sentiment had become a bit too frothy,” said Justin Walters, co-founder of Bespoke Investment Group LLC. “But there’s nothing like a market sell-off to get investors back on their toes.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- GDS Holdings Ltd. is considering acquiring GLP Pte’s data centers business as the Chinese cloud computing company seeks to expand its digital infrastructure capacity in the world’s second-largest economy, according to people familiar with the matter.GDS, a developer and operator of high-performance data centers across China, is holding preliminary talks with Singapore investment manager GLP over a potential transaction that could value the assets at $8 billion to $10 billion, the people said, asking not to be identified because the deliberations are private. As part of the deal GLP would become a shareholder in Shanghai-based GDS, the people said.Considerations are at an early stage and the companies could decide against pursuing a transaction, the people said. Details including valuation and structure of a deal could change, they said. Representatives for GDS and GLP didn’t respond to phone calls, emails and text messages requesting comment.GDS’s American depositary shares jumped as much as 5.4% Tuesday. They were up 4.2% at 12:41 p.m. in New York, giving the company a market value of $14.8 billion and putting it on track to close at the highest level in more than two weeks.Booming Interest The prospective deal comes as digital infrastructure swells in importance to the global economy, with data centers supporting everything from the video streams that enable remote working to the online gaming and social media that fill our leisure time.Read More: Global Switch’s Chinese Owners Said to Mull $11 Billion SaleGDS, China’s largest independent data center operator by market value, raised $1.9 billion in a Hong Kong secondary listing last year, according to data compiled by Bloomberg. Chief Executive Officer William Huang said in a November Bloomberg Television interview that the company plans to use the proceeds primarily to invest in data centers in China, Hong Kong and possibly Southeast Asia. GDS might also look at M&A opportunities in China and beyond, Huang said.GLP has substantial data center holdings of its own in China. The company has been developing GLP Huailai Internet Data Centre in Hebei province, northern China, with a total investment of about 10 billion yuan ($1.6 billion), according to its website. The facility will offer more than 15,000 cabinets, which can hold about 200,000 servers, once the project is finished.Founded in 2009, the firm is a global investment manager in logistics, real estate, infrastructure and technology, the website shows. It operates in markets including China, the U.S., Brazil, Europe, India, Japan and Vietnam and counts more than $100 billion in assets under management.A sale of the data center assets would follow other blockbuster deals by GLP. In 2019, it sold its U.S. urban logistics properties to Blackstone Group Inc. in an $18.7 billion transaction.(Updates with New York trading in fourth paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Global banks are losing share in the $186 billion lending market for Chinese borrowers offshore, falling behind local rivals boosting their presence just as the nation’s corporate sector recovers from the pandemic.Their portion of such lending has steadily dropped over the past decade, hitting 37% so far this year to May 17, well below the 11-year average of 51%, according to Bloomberg-compiled data. Last year the share fell to 29%, the lowest since at least 2010. Taking over the slack are local lenders led by Bank of China Ltd., which has made the most offshore loans in the country for at least the last three years.The increased prominence of Chinese banks in the offshore loan market reflects the growth in general of the lenders as the economy expands. Industrial & Commercial Bank of China Ltd. has seen its total assets more than double in the past decade to $5.1 trillion in 2020, making it the world’s largest bank by that measure, and the holdings of its big three state-owned rivals have also ballooned at a similar pace.For foreign banks, the increased competition from their Chinese rivals could lead to shrinking profit margins on deals, said Gary Ng, economist at Natixis SA in Hong Kong.Deals in China’s offshore loans, which are non-yuan debt clubbed or syndicated in Asia excluding China for the nation’s borrowers, have grown eightfold to $44.7 billion last year from $5.2 billion in 2010, Bloomberg-compiled data show. Bankers expect mergers and acquisitions to help drive such borrowings this year as the global economy recovers from the pandemic. The rebound in China is also likely to extend into the second quarter, according to Bloomberg economist Chang Shu.A look at the share of China offshore loans among the top global banks highlights their retreat. Standard Chartered Plc’s portion fell to 5% last year from 9% in 2010 while it’s halved to 3% for HSBC Holdings Plc. Current market leader Bank of China’s share, though, has surged to about 8% from 2% in the period.Spokespeople at Standard Chartered and HSBC declined to comment. There was no immediate reply from Bank of China to an email seeking comment.Some international lenders are already reducing staff for the loans or exiting the market completely. Australia’s Westpac Banking Corp. said it aims to close its mainland China and Hong Kong branches next year, subject to local regulatory approval.“For a lot of international banks, the competitive pressure on margins and terms may not meet their returns hurdle, making it less appealing for them to participate,” according to Augusto King, co-head of Asia debt capital markets - loans and bonds at MUFG Securities Asia.(Adds story link table)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 crypto car drove to the dump Monday as most blockchain assets fell.
The drop seems to confirm what some equity analysts had pondered at the time of Coinbase’s listing – that COIN might act as a proxy bitcoin exchange-traded fund (ETF).
(Bloomberg) -- Elon Musk continued to whipsaw the price of Bitcoin, briefly sending it to the lowest since February after implying in a Twitter exchange Sunday that Tesla Inc. may sell or has sold its cryptocurrency holdings.Bitcoin slid below $45,000 for the first time in almost three months after the billionaire owner of the electric-car maker seemed to agree with a Twitter post that said Tesla should divest what at one point was a $1.5 billion stake in the largest cryptocurrency. It traded at $45,270 as of 5:51 p.m. in New York, down about $4,000 from where it ended Friday.The online commentary was the latest from the mercurial billionaire in a week of public statements that have roiled digital tokens. He lopped nearly $10,000 off the price of Bitcoin in hours last Wednesday after saying Tesla wouldn’t take it for cars. A few days earlier, he hosted “Saturday Night Live” and joked that Dogecoin, a token he had previously promoted, was a “hustle,” denting its price. Days later he tweeted he was working with Doge developers to improve its transaction efficiency.Musk’s disclosure in early February that Tesla used $1.5 billion of its nearly $20 billion in corporate cash to buy Bitcoin sent the token’s price to record and lent legitimacy to electronic currencies, which have become more of a mainstream asset in recent years despite some skepticism.His latest dustup with Bitcoin started with a tweet from a person using the handle @CryptoWhale, which said, “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him...”The Tesla chief executive officer responded, “Indeed.”The twitter account @CryptoWhale, which calls itself a “crypto analyst” in its bio, also publishes a Medium blog on market and crypto trends.Musk has spent hours Sunday hitting back at several different users on Twitter who criticized his change of stance on Bitcoin last week, a move he said was sparked by environmental concerns over the power demands to process Bitcoin transactions. He said at the time that the company wouldn’t be selling any Bitcoin it holds.An outspoken supporter of cryptocurrencies with cult-like following on social media, Musk holds immense sway with his market-moving tweets. He has been touting Dogecoin and significantly elevated the profile of the coin, which started as a joke and now ranks the 5th largest by market value.Dogecoin is down 9.6% in the last 24 hours, trading at 47 cents late Sunday afternoon, according to data from CoinMarketCap.com.Tesla didn’t immediately respond to an email seeking comment on Musk’s tweet on Sunday.Read More: Elon Musk Just Reopened an Old Wound in the Bitcoin WorldMusk’s Sunday social-media escapades were the latest chapter in one of the zaniest weeks in a crypto world famous for its wildness. For die hards, the renewed slumps in Bitcoin and other tokens have done nothing to deter crypto enthusiasts who say digital coins could many times their current value if they transform the financial system.“We’re looking at the long-term and so these blips, they don’t faze us,” Emilie Choi, president and chief operating officer of crypto exchange Coinbase Global Inc., said last week on Bloomberg TV about the wild swings prevalent in the market. “You’re looking for the long-term opportunity and you kind of buckle up and go for it.”Seat belts were needed by anyone watching the crypto world in the past eight days. Aside from Musk’s antics that sent Doge and Bitcoin on wild rides, a host of other developments pushed around prices.Tether, the world’s largest stablecoin, disclosed a reserves breakdown that showed a large portion in unspecified commercial paper. Steve Cohen’s Point72 Asset Management announced that it would begin trading cryptocurrencies. And a longstanding critique of the space reared its head again: illicit usage.It was reported that the owners of the Colonial Pipeline paid a $5 million ransom in untraceable digital currencies to hackers that attacked its infrastructure, while Bloomberg also reported that Binance Holdings Ltd., the world’s biggest cryptocurrency exchange, was under investigation by the Justice Department and Internal Revenue Service in relation to possible money-laundering and tax offenses.But, “for many crypto assets such as Bitcoin and Ethereum, the long-term story has not changed,” said Simon Peters, an analyst at multi-asset investment platform eToro. “This emerging asset class continues to revolutionize many aspects of financial services, and while nothing goes up in a straight line, the long-term fundamentals for crypto assets remain as solid as ever.”Bitcoin was already swinging wildly on the weekend before Musk tweeted. The two days tend to be particularly volatile for cryptocurrencies, which -- unlike most traditional assets -- trade around the clock every day of the week. Bitcoin’s average swing on Saturdays and Sundays so far this year comes in at 4.95%.That type of volatility is owing to a few factors: Bitcoin’s held by relatively few people, meaning that price swings can be magnified during low-volume periods. And, the market remains hugely fragmented with dozens of platforms operating under different standards. That means cryptocurrencies lack a centralized market structure akin to that of traditional assets.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The City of London's 'Golden Age' as Europe's financial capital is over following Brexit, but it will remain a major and profitable centre, NatWest bank chairman Howard Davies said on Tuesday. The City has been largely cut off from the EU since Britain's full departure on Dec. 31, 2020, with bankers and City officials not expecting any direct access to the bloc anytime soon. "Almost five years after the Brexit referendum, and five months after Britain's exit from the European Union, the future of London as a global financial center seems secure," Davies said in a column for Project Syndicate on Tuesday.
(Reuters) -CVS Health on Tuesday named former Aetna Chief Financial Officer Shawn Guertin as its new finance chief, in the latest hiring of a former executive of the health insurer since Karen Lynch was named chief executive. CVS bought Aetna in 2018 to help tackle soaring healthcare spending through lower-cost medical services in pharmacies, and Guertin played a key part in the $69 billion deal.
(Bloomberg) -- The European Union’s final bond sales for its regional jobs program failed to live up to the hype of previous editions, a concerning sign for its landmark borrowing spree that’s due to start in the second half of the year.Investors placed 88.7 billion euros ($108 billion) of orders for eight- and 25-year securities tied to the SURE social program, little more than a third of the record set for a dual-tranche issue last year. It comes as yields across the region climb as investors prepare for European Central Bank to scale back its bond purchases in the face of growing inflationary pressures. The bloc is ready to start sales for its 800 billion-euro recovery fund by July.It marks a stark turnaround for one of the hottest new triple-A rated bond markets in town. When the EU launched the securities last year, Europe was still firmly in the throes of lockdowns, the ECB was committed to pumping money into debt markets and investor demand for the securities was enormous. Now, with economies reopening and consumer prices expected to accelerate, they’re becoming a less attractive asset.“We had been used to some very strong demand for the EU bonds,” said Jens Peter Sorensen, chief analyst at Danske Bank AS. “Why buy today, if you can buy cheaper tomorrow? That’s becoming a self-fulfilling prophecy.”The bloc is set to become a major issuer of bonds in the coming years, potentially creating a debt market akin to the size of Spain’s. The securities have also been touted as a one-day rival to U.S. Treasuries, given the current scarcity of German bonds -- the region’s haven asset -- and the risks associated with holding riskier peripheral debt.In another sign of waning demand, the yield on 10-year SURE bonds has climbed more than 40 basis points since they were issued in October. That mirrors moves elsewhere in Europe, with German 10-year bond yields climbing to their highest level since 2019 last week.Goldman Sachs Group Inc. expects them to breach 0% for the first time since 2019 this year. Italian 10-year bond yields rose to the highest level since July on Monday as investors speculated an economic growth rebound could mean less central bank support.“The first few EU SURE syndications were a smashing success in terms of demand,” said Martin van Vliet, a strategist at Robeco. “There will be structural demand for triple AAA paper such as the EU, so the recovery fund issuance will be digested, but we’re not sure demand will be as astronomical.”The Commission announced Monday that it would use an auction system operated by France’s central bank to issue debt later in the year, relying on syndications in the meantime. Sales are expected to average around 150 billion euros per year for the duration of the program, though all member states need to ratify the recovery program for funds to start flowing.Still, EU bonds will outperform “core” European sovereign peers because investors face a serious shortage of notes in both the short- and long-term, Commerzbank AG analysts wrote in a note to clients last month. Any attempt to extend the size of the package is likely to be politically difficult, they argue.The EU mandated Deutsche Bank AG, LBBW, Morgan Stanley, Natixis SA and NatWest Markets for the sale of SURE bonds. Commerzbank expects the EU will sell as much as 15 billion euros of bonds. The sale of eight-year securities was given a price of two basis points below midswaps, while the 25-year was marked at 17 basis points above.“Over the last couple of weeks things have definitely turned more challenging,” said Christoph Rieger, head of fixed-rate strategy at Commerzbank. “Lower ECB buying may require somewhat higher premiums.”(Updates to include final demand from first paragraph.)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 61-year-old bond investor does favor a wealth tax in place of an income tax.