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QTS earnings call for the period ending December 31, 2020.
(Bloomberg) -- To get a sense of just how quickly corporate America has bounced back from the pandemic, consider this: for the first time since January 2020, U.S. bankruptcy courts saw no large Chapter 11 bankruptcy filings last week.The halt in filings by companies with at least $50 million of liabilities comes as re-openings and vaccinations pick up steam. Bankruptcies and restructuring in the lodging sector and others related to leisure and travel should continue to decline as vaccines roll out globally, Ronen Bojmel, head of restructuring at Guggenheim Securities, said in an interview.“People are going to want to go out, they will want to spend and travel, and the market will demonstrate significant strength for a period of time,” Bojmel said. But it’s “extremely volatile” and “could change direction pretty quickly.”Just 56 large firms have sought bankruptcy court protection in the U.S. as of May 17, well below last year’s tally of 87 during the same time. Still, the pace of bankruptcy filings is above the 10-year average of about 52 cases as of that date, data shows.“There’s no distress in the economy right now -- it’s pretty amazing,” said Chris Ward, a bankruptcy lawyer with Polsinelli PC. “Retail is coming back. Bars and restaurants are opening. There’s definitely optimism in the economy.”Despite the lack of new filings, last week was busy for companies already in bankruptcy court. Hertz Global Holdings picked Knighthead Capital Management and Certares Management to buy the car renter out of bankruptcy. Brazos Electric Power Cooperative secured a $350 million bankruptcy loan from JPMorgan Chase & Co. Energy company Seadrill Partners also won approval of its plan to slash $2.8 billion of debt, while the National Rifle Association lost its Chapter 11 protection after it was tossed out of bankruptcy court.Meanwhile, the total amount of traded distressed bonds and loans is less active, falling again to about $79 billion as of May 14, data compiled by Bloomberg show. There were 209 distressed bonds from 120 issuers trading as of Monday, up from 200 and up from 119, respectively, one week earlier, according to Trace data.Click here for a worksheet of distressed bonds and loansBusinesses most impacted by the pandemic stand to gain from the slow down in Covid-19 infections seen in recent weeks. The amount of traded distressed bonds rose 1.3% week-on-week, while distressed loans fell 13.2%Despite the lack of troubled issuers on a week-by-week basis, industries including retail, real estate, and hospitality can still offer deals for bargain hunters willing to take on uncertainty, Howard Marks, co-founder of Oaktree Capital Management, said last week during a virtual finance panel hosted by the Committee of 100.Diamond Sports Group LLC had the most distressed debt of issuers that hadn’t filed for bankruptcy as of May 14, Bloomberg data show. Its parent company, Sinclair Broadcast Group Inc., said in a March filing that it expects Diamond to have enough cash for the next 12 months if the pandemic doesn’t get worse.Click here for more news on distressed debt and bankruptcy. First Word is curated by Bloomberg editors to give you actionable news from Bloomberg and select sources, including Dow Jones and Twitter. First Word can be customized to your Worksheet, sectors, geography or other criteria by clicking into Actions on the toolbar or hitting the HELP key for assistance.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) -- China Mobile Ltd., the country’s largest wireless carrier, has announced a plan to list in Shanghai after being removed from the New York Stock Exchange due to an investment ban ordered by former U.S. President Donald Trump.The proposal approved by the state-owned firm’s board would see it issue as many as 965 million shares, it said in a Hong Kong exchange filing late Monday. The company will seek sign-off from shareholders, and will submit applications to the China Securities Regulatory Commission and the Shanghai Stock Exchange.The proceeds will be used for the development of 5G mobile networks and new infrastructure for cloud resources as well as research and development for next-generation information technology, the statement showed.China Mobile shares in Hong Kong rose as much as 4.8% on Tuesday, their biggest intraday move since March 1.Bloomberg News reported on the company’s listing plan earlier this month, citing people familiar with the matter.The NYSE suspended trading in China Mobile shares in January, along with the country’s two other major state-owned operators, China Telecom Corp. and China Unicom Hong Kong Ltd. China Telecom is also seeking a share sale in Shanghai, while China Unicom already trades in the city as China United Network Communications Ltd. All three have listings in Hong Kong.The New York de-listings followed an order barring U.S. investments in Chinese companies that the Trump administration deemed a threat to national security. With no sign of a change in course under President Joe Biden, the telecom giants are looking back home for capital to fund their spending on 5G networks. They spent $27 billion last year in China in the world’s largest 5G expansion.Earlier this month, the three carriers said they expected the NYSE to proceed with the firms’ delisting after attempts to have the decision overturned failed.Chinese authorities have said the three firms’ removal from U.S. markets would have a limited impact on the carriers. The affected shares are worth less than 20 billion yuan ($3.1 billion) and account for 2.2% of the total issued by each company, the CSRC said in January.Still, the three companies combined lost more than $30 billion in market value in the final weeks of 2020 as investors withdrew following Trump’s order in November.China Mobile and China Telecom shares have both performed well in Hong Kong in 2021, climbing 10% and 19%, respectively as of Monday. China Unicom shares have declined 0.2% since the start of the year.In March, China Mobile said its net income rose 1.1% to 107.8 billion yuan last year, bouncing back from a 9.5% drop in 2019. The improvement came as the company accelerated implementation of 5G networks. It also announced a full-year dividend of HK$3.29 ($0.42) a share.(Updates with Hong Kong share price 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) -- AT&T Inc. agreed to spin off its media operations in a deal with Discovery Inc. that will create a new entertainment company, merging assets ranging from CNN and HBO to HGTV and the Food Network.The transaction values the combined entity at about $130 billion including debt, based on WarnerMedia’s estimated enterprise value of more than $90 billion.AT&T will receive $43 billion in cash, debt securities and debt retention, with its shareholders getting stock representing 71% of the new company, the companies said in a statement Monday. The deal is structured as a tax-friendly Reverse Morris Trust.The plan, first reported by Bloomberg News, would combine Discovery’s reality-TV empire with AT&T’s vast media holdings, creating a formidable competitor to Netflix Inc. and Walt Disney Co. It marks a retreat for AT&T’s entertainment-industry ambitions after years of working to assemble telecom and media assets under one roof. AT&T, now the world’s most heavily indebted nonfinancial company, gained some of the biggest brands in entertainment through its $85 billion acquisition of Time Warner Inc., completed in 2018.Discovery Chief Executive Officer David Zaslav is to lead the new entity. The future of WarnerMedia CEO Jason Kilar, meanwhile, has yet to be determined, AT&T CEO John Stankey said on a conference call discussing the deal.The transaction includes all of AT&T’s WarnerMedia operations. In addition to CNN and HBO, WarnerMedia owns Cartoon Network, TBS, TNT and the Warner Bros. studio. Discovery, backed by cable mogul John Malone, controls networks such as TLC and Animal Planet. The new company’s name will be announced this week, Zaslav said on the conference call.‘Complementary Content’“This agreement unites two entertainment leaders with complementary content strengths and positions the new company to be one of the leading global direct-to-consumer streaming platforms,” Stankey said in the statement. “It will support the fantastic growth and international launch of HBO Max with Discovery’s global footprint and create efficiencies which can be reinvested in producing more great content to give consumers what they want.”Discovery shares initially jumped on news of the deal, but they began to slip later Monday and were down as much as 4.5% to $34.05. AT&T climbed 1% to $32.56 as of 12:30 p.m. in New York.In shedding the assets, Stankey has been unwinding an acquisition spree undertaken by predecessor Randall Stephenson. The deal underscores the difficulty telecom companies have had finding a payoff from their media operations. Verizon Communications Inc. announced its own plan to slim down earlier this month. The company agreed to sell its media division to Apollo Global Management Inc. for $5 billion, a move that will offload online brands like AOL and Yahoo.“I expect AT&T is going to be the No. 1 telecom and communications company in the world,” Zaslav said on the conference call. And the new combined entity “will not stop until we have the No. 1 global entertainment company, reaching people on every device.”Though he has questioned in the past whether news content was a good fit with Discovery, Zaslav said the new company would keep CNN and “lean into news.”Kilar, a streaming-industry veteran who helped found Hulu, has been running WarnerMedia for the past year. At a recent investor conference, he defended the need for the business to be owned by AT&T, saying the telecom company had invested billions of dollars in HBO Max and broken down silos within the company to create a single operating unit. He added that AT&T’s phone and broadband customers were less likely to cancel if they got HBO Max, and many of HBO Max’s subscribers were AT&T customers.At Discovery, Zaslav has helped the company grow through acquisitions, including a purchase of HGTV owner Scripps Networks Interactive Inc. in 2018.Discovery’s RallyDiscovery shares experienced a meteoric rally earlier this year but had lost more than half their value since Bill Hwang’s Archegos Capital Management was forced to liquidate its positions. The shares remained up 18% for the year through the end of last week. That gave the company a market value of almost $24 billion. AT&T, meanwhile, gained 12% in 2021, giving it a market capitalization of $230 billion.LionTree LLC and Goldman Sachs Group Inc. advised AT&T on the transaction, while Allen & Co. and JPMorgan Chase & Co. worked with Discovery. Perella Weinberg Partners also provided advice to Discovery’s independent directors.Stankey has been cleaning house at the sprawling telecom titan, cutting staff and selling underperforming assets. The company has been funneling money into rolling out its 5G wireless network, which requires billions of dollars of investment, as well as expanding its fiber-optic footprint.What Bloomberg Intelligence Says“We believe Comcast could add its NBC unit to the bidding mix. An NBC-Warner matchup would combine two powerful studios and streaming platforms while a scaled TV network unit with $12 billion in Ebitda could better weather secular declines and generate $2 billion in cost savings.”--Geetha Ranganathan, media analystClick here to read the research.The carrier has been boosting movie and television production to attract subscribers to its HBO Max streaming service. It also needs cash to pay down debt. AT&T racked up borrowing of $200 billion after an acquisition spree, and though it’s been reducing what it owes, it now has bills from a recent spectrum auction.AT&T was the second-highest bidder in the Federal Communications Commission’s sale of airwaves, committing $23 billion. Verizon, the top bidder, agreed to pay $45 billion.DirecTV SpinoffThe Discovery agreement comes just months after AT&T reached a deal to spin off its DirecTV operations in a pact with buyout firm TPG. AT&T also agreed in December to sell its anime video unit Crunchyroll to a unit of Sony Corp. for $1.2 billion.And the company has parted with its Puerto Rico phone operations, a stake in Hulu, a central European media group and almost all its offices at New York’s Hudson Yards.Stephenson had spent his 13-year tenure as CEO bulking up the company. Stephenson, who handed the reins to Stankey last year, even kept a color-coded roster of companies he wanted AT&T to buy, leading to 43 acquisitions.But critics such as activist investor Elliott Management Corp. complained about the strategy, urging AT&T to focus on its core business. AT&T’s mountain of debt also put pressure on the company to cut staff and sell assets.‘Transformational Year’The Discovery deal represents an admission that AT&T’s audacious plan to build a media and communications conglomerate was a costly misfire.Elliott weighed in on the news Monday morning, praising Stankey’s efforts to redirect the Dallas-based phone company.”It has been a transformational year at AT&T,” Jesse Cohn, managing partner, and Marc Steinberg, portfolio manager, said in a statement. “AT&T has now executed on its promise to streamline operations and refocus on its core businesses.”Analysts see antitrust risk to the Discovery tie-up as low. By creating a large collection of cable channels, one question for competition authorities is whether the combined company would have increased leverage over pay-TV distributors that could lead to higher prices for consumers.But the Department of Justice in 2018 approved a much larger media merger with Disney’s purchase of film and TV assets held by 21st Century Fox.Economic Harm“If the DOJ did not think that combining those cable assets caused market harm, it is a little difficult to see the kind of economic harm that a smaller combination could cause, particularly as the economic power of cable assets is diminishing as the power of streaming assets grows,” Blair Levin, an analyst at New Street Research, said in a note Monday.The Discovery deal also unwinds the AT&T-Time Warner combination that the Justice Department argued was illegal, a challenge that ultimately failed.Since then, consumers’ streaming options have proliferated, which will ease the path to approval, according to Bloomberg Intelligence analyst Jennifer Rie. She expects a review that could last up to a year and may require the new company to sell some assets or agree to arbitration provisions if there are disagreements with cable companies over distribution deals.“That result is far more likely than the DOJ trying to go to trial again after the loss the first time,” she said.(Updates with shares in eighth paragraph, Elliott comments in 24th 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) -- China Huarong Asset Management Co. has transferred funds to repay a $300 million bond maturing Thursday, according to a person familiar with the matter.The state-owned distressed debt manager wired funds for the 3.3% bond due May 20 to the trustee account last week, said the person, who asked not to be identified as the matter is private.A Huarong spokesperson declined to comment on the bond payment but said the company and its affiliates have paid its maturing bonds in full. Huarong’s liquidity is “fine” and the company has made arrangements to repay future bonds, the spokesperson said, reiterating comments from last week.Huarong has secured funding agreements with state-owned banks to ensure it can repay debt through at least the end of August, by which time the company aims to have completed its 2020 financial statements, Bloomberg News reported on Monday. The company’s bonds dropped on Tuesday after the New York Times reported that China is planning an overhaul of Huarong that would inflict “significant losses” on both domestic and foreign bondholders.Huarong said last week that it has seen no change in support from China’s government. The company repaid its S$600 million bond due April 27 with funds provided by the Singapore branch of state-owned lender Industrial & Commercial Bank of China Ltd.Huarong has become a closely watched proxy for China’s willingness to backstop government-owned borrowers amid a record wave of corporate defaults. Investors have grown concerned about the company’s financial health -- and its level of support from Beijing -- after an ill-fated expansion under former Chairman Lai Xiaomin, who was executed for crimes including bribery in January.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) -- Vodafone Group Plc shares fell as much as 8.3% after Chief Executive Officer Nick Read’s strategy showed higher capital expenditure on network investments will hit free cash flow.Although Read’s message is “spend more to grow more,” the “prospect of the improved growth may take longer for investors to absorb,” said Berenberg analyst Carl Murdock-Smith.Vodafone said it can increase margins in the medium-term and guided for adjusted earnings before interest, tax, depreciation and amortization after leases between 15 billion and 15.4 billion euros ($18.8 billion) in 2022, with adjusted free cash flow of at least 5.2 billion euros.Organic service revenue rose 0.8% in the fourth quarter versus an average analyst estimate of 0.4% compiled by Bloomberg.Key InsightsRead wants to do more with less. He’s sold some of the telecom group’s farther-flung units like New Zealand while cutting costs and consolidating operations in Europe and Africa.The centerpiece of this asset-squeezing strategy has been carving out and listing Vodafone’s masts in the form of Vantage Towers AG, which reported earnings in line with guidance on Monday.The Newbury, England-based telecom group will focus on fixed and mobile connectivity in Europe, and mobile data and payments in Africa, the company said in a statement Tuesday. That will mean upgrading fixed and wireless networks.In Africa, the group had 84.9 million data users and mobile money platform M-Pesa handled 15.2 billion transactions in 2021, an increase of 25%.Vodafone has been the subject of press reports and speculation about potential consolidation deals as rivals around Europe merge: Liberty Global Plc is set to combine its U.K. operations with Telefonica SA’s O2, while Spanish rival Masmovil Ibercom SA is snapping up Euskaltel SA.Market ContextVodafone shares have risen 5.4% in the 12 months to Tuesday versus a 13.1% rise in the Stoxx Europe 600 Telecommunications Index.Of 26 analysts surveyed by Bloomberg, 23 rate Vodafone buy, 1 hold and 2 sell.Get MoreStatementNOTE, May 17: Vantage Towers FY Adj. EBITDA AL EU524M Vs. EU513M Y/yNOTE, Apr. 30: Ethiopia Pledges to Allow Mobile Money for New Telecom Entrants(Updates with analyst reaction, shares, and M-Pesa details)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
U.S. stocks are seen opening higher Tuesday, with the tech-heavy Nasdaq Composite leading the way, helped by renewed confidence in the Federal Reserve retaining its ultra-easy monetary policy, while strong earnings from the retail sector again testify to the strength of consumer demand. Large-cap retailers Walmart (NYSE:WMT) and Home Depot (NYSE:HD) reported blowout first quarters, helped by the last round of stimulus checks that put more money in consumers' pockets, while Macy’s (NYSE:M) raised its forecast for annual sales and earnings, betting on pent-up demand as shoppers return to its stores. At 7:15 AM ET (1115 GMT), the Dow Futures contract was up 90 points, or 0.3%, S&P 500 Futures traded 11 points, or 0.3%, higher, and Nasdaq 100 Futures climbed 90 points, or 0.7%.
It's 2011. After a series of typical tech jobs, Bobby Lee decides to launch BTCChina, China's first Bitcoin exchange. It would be a wild ride.
‘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.’
SafeMoon debuted its cryptocurrency in March, claiming to solve common problems that plague Bitcoin, Ethereum, and Dogecoin.
Experienced hands look to be buying the dip as a key bitcoin price indicator suggests the pullback may be coming to an end.
Stocks fell on Monday, resuming last week's declines as investors' concerns around rising inflation persisted.
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.
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.
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.
AT&T said Monday it will combine its massive WarnerMedia media assets, which includes HBO and CNN, with Discovery Inc. to create a new media heavyweight in a $43 billion deal.
The payments will reach more than 65 million children, according to senior administration officials.
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.
Companies caught in the middle of the global semiconductor shortage, which is roiling the car business, are starting to see light at the end of the tunnel.
(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.