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The golf giant's recent merger with Topgolf could boost its growth in more than just the most obvious ways.
(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.
Walmart blew past Wall Street projections in the first quarter with U.S. stimulus payments to Americans helping to boost sales.
(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.
IPO Edge will host a fireside chat with Origin Materials, Inc. (“Origin” or “Origin Materials”) and Artius Acquisition Inc. (NASDAQ: AACQ, “Artius”) on Monday, May 24 at 2pm ET to discuss their pending merger. The live event will feature Origin Co-Founder and Co-CEO John Bissell and Co-CEO Rich Riley, as well as Artius CEO Boon Sim. IPO […]
BTC continues to consolidate and is now at the bottom of a three-month range.
(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.
I think the main driver of the rally is that gold investors believe the Fed when it says it is going to hold policy accommodative.
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.
‘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.
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.
Raoul Pal tells bitcoin investors that current volatility is to be expected, but big things are around the corner.
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.
‘Everybody wants to have asset prices forever going up and the cost of financing to be next to nothing,' Kerry Killinger says.
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.
Learn the basic structure of a 401(k) and why it may not be enough to sustain you during retirement.
The payments will reach more than 65 million children, according to senior administration officials.
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.
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.