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(Bloomberg) -- Credit Suisse Group AG unloaded about $2 billion of stocks tied to the Archegos Capital Management blowup in the second such block sale since the bank wrote down the bulk of its exposure in the first quarter.The stock offerings included Discovery Inc. and Iqiyi Inc., adding to some $2.3 billion worth of shares tied to the debacle that the bank sold last week, according to people familiar with the matter. The trades follow a torrent of similar transactions that had already erased about $194 billion in market value as banks from New York to Zurich and Tokyo unwound leveraged equity bets by Bill Hwang’s family office.Shares of Credit Suisse fell as the sale adds to evidence that the Archegos collapse could impact the bank beyond the first quarter, when it took a 4.4 billion franc ($4.8 billion) writedown, its worst trading hit in more than a decade. While the Swiss bank has substantially reduced its exposure, transactions since the end of March weren’t included in the first-quarter results, a person familiar with the matter has said.Credit Suisse fell as much as 2.2% in early Zurich trading and was 1.2% lower by 9:43 a.m. The stock has lost 15% this year, compared with double-digit gains for an index that includes its European peers.A spokesperson for Credit Suisse declined to comment on the sale and whether the bank plans more such transactions.Hwang’s private investment firm became the center of one of the biggest margin calls of all time late last month, and represented one of the most spectacular failures of risk-management and oversight in recent memory. The downfall of Archegos will result in $10 billion of losses to banks, according to analysts at JPMorgan Chase & Co. The debacle could attract regulatory scrutiny and potential fines for the banks involved, the analysts said this week.Read more: Archegos Ripples Through Banks’ Lucrative Hedge Fund BusinessTuesday’s block trades -- which sold at the lower end of ranges -- included 19 million Class A shares of Discovery sold at $38.40, said one of the people, asking not to be identified discussing a private matter. In addition, 22 million Class C shares of Discovery sold at $32.35 while a stake of 35 million Iqiyi shares went for $15.85.Credit Suisse’s latest sale comes weeks after several rivals dumped their shares to skirt losses. While the firm was one of several global investment banks to facilitate the leveraged bets of Archegos, it was slower than others to unwind the positions and had initially tried to reach some sort of standstill agreement, people familiar with the matter have said.The strategy failed as rivals rushed to cut their losses. Global banks including Goldman Sachs Group Inc. and Deutsche Bank AG have told investors that they shed their Archegos-linked positions with little financial impact.Credit Suisse is now planning a sweeping overhaul of its hedge fund business. It has already announced plans to cut its dividend, suspend share buybacks and scrap bonuses for top executives.(Updates with Credit Suisse shares from third paragraph.)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.
(Bloomberg) -- Barclays Plc shares briefly dropped almost 10% in the opening minutes of Wednesday’s session, the most intraday in more than a year, in what traders said was likely due to an error known as a “fat finger.”The stock entered a volatility auction at about 8:06 a.m. in London after two trades totaling about 48,000 shares at a price of 168.40 pence, according to Bloomberg data. The shares quickly recovered after the five-minute pause and were down 0.3% to 186.32 pence at midday.Trades made in human error, or even by algorithms, are often referred to as “fat fingers,” a term stemming from the idea that a person’s over-sized digits might cause them to hit the wrong button on a computer keyboard. While generally not uncommon, fat fingers in high-profile stocks like Barclays -- one of the U.K.’s largest publicly traded companies -- are rare.What Are Fat Fingers and Why Don’t They Go Away?: QuickTakeWednesday’s apparent error briefly trimmed about 3.2 billion pounds ($4.4 billion) from the bank’s market capitalization.About two years ago, a fat finger was cited for an 83% drop in shares of investment firm Jardine Matheson Holdings Ltd. in Singapore, while in 2018, BNP Paribas Securities was blamed for erroneous orders that knocked almost 10% off the value of Taiwan-listed Formosa Petrochemical Corp.While erroneous trades are sometimes canceled, there were no cancelations for Barclays as of midday, Bloomberg data show. The day’s low, according to the data, matched that shown on the London Stock Exchange website.(Updates with background on fat finger trades and cancelled trades from third paragraph.)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.
(Bloomberg) -- Britain’s financial markets watchdog is looking to upgrade its relationship with the U.S. and give U.K. firms permanent access to American securities and derivatives markets in the wake of Brexit.The Financial Conduct Authority is working closely with the Commodity Futures Trading Commission about a “permanent footing” for U.K. trading venues to operate in the U.S., Nausicaa Delfas, the FCA’s executive director of international, said at a conference on Tuesday.“If granted, this recognition will provide U.K. firms with the certainty they need to conduct their business in the U.S. with confidence,” Delfas said at the City & Financial Global virtual event.The FCA is also in discussions with the Securities and Exchange Commission over access to the U.S. for swap dealers, and the regulator is supporting the U.K. government’s negotiations with the U.S. on a wider trade agreement. These efforts build on agreements made before Brexit came into effect at the start of the year, which pledged to minimize disruption in transatlantic financial markets.“There is much still to be agreed, but we are supportive of an ambitious outcome on financial services that benefits both U.K. and U.S. industries whilst preserving our regulatory objectives and safeguards,” Delfas said.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.
(Bloomberg) -- Cryptocurrency exchange Coinbase Global Inc. soared above a $112 billion valuation in its trading debut Wednesday, then slipped back below its opening price as Bitcoin fell from record highs and tech stocks fell across the board.The massive valuation, which dwarfs more traditional financial companies including Intercontinental Exchange Group Inc. and Nasdaq Inc. itself, is a landmark moment for the crypto industry and for Coinbase, which was started almost a decade ago when few people had even heard of Bitcoin, and many exchanges were run by amateurs from their garages and homes.Coinbase shares traded at $332.99 apiece on Nasdaq at 2:56 p.m., after earlier climbing as high as $429.54. Bitcoin, which along with Ethereum made up 56% of Coinbase’s 2020 trading revenue, dipped below $62,000 after earlier hitting a record price.The early rally isn’t just a mark of success for Coinbase, which was valued at just $8 billion in its most recent funding round in 2018. It’s also a win for Nasdaq, which hosted its first direct listing after beating out the New York Stock Exchange for Coinbase’s debut. Coinbase is the biggest company to take the direct listing route to market.Coinbase Chief Financial Officer Alesia Haas said in an interview Wednesday morning that one of the reasons that the company picked Nasdaq was because the bourse offered the ticker symbol “COIN,” which wasn’t part of the New York Stock Exchange’s pitch.“Ultimately that they had the ticker COIN, and that was a really great ticker for us to get,” Haas said.Nasdaq on Tuesday set a reference price of $250 a share for Coinbase’s direct listing, a number that’s a requirement for the stock to begin trading, but not a direct indicator of the company’s potential market capitalization. Every major direct listing has so far opened significantly above its reference price, with Roblox shares debuting at $64 each –- 42% higher than the number set by the exchange.Coinbase shares changed hands at a roughly $90 billion valuation in early March, Bloomberg News reported at the time, in what was one of the last chances for investors to trade its private stock before the company went public.Digital Currency Group founder Barry Silbert, who’s built an empire that spans the crypto world, tweeted Tuesday that his shares would definitely not be changing hands at the reference price, in an early sign that the stock was set for a pop at the open.Direct listings are an alternative to a traditional initial public offering that has only been deployed a handful of times. Until Wednesday, every company to pursue one -- including Slack Technologies Inc., Palantir Technologies Inc. and most recently Roblox Corp. -- listed on the New York Stock Exchange.As well as the ticker, Nasdaq’s ability to provide a private market for the shares, as well as services it offers such as investor relations work, were among its selling points to Coinbase, according to a person familiar with the matter.Appropriately for a company that in May said it was committing to a “remote-first” work culture and doesn’t list a headquarters on its filing, Coinbase’s pitch meetings with Nasdaq happened virtually, the person added.“We evaluated both NYSE and Nasdaq and ultimately felt that the Nasdaq platform was aligned with our value as a tech company,” Haas said.In a direct listing, a company’s shares begin trading without it issuing new shares to raise capital. That avoids diluting the shares and also, unlike a traditional IPO, often allows the company’s existing investors to put their shares on the market without waiting for lockup period -- typically six months -- to expire.Luring Coinbase was a win for Nasdaq, whose years-long fight for a larger share of mega listings gained traction in the past year. Half of the 10 largest U.S. IPOs, excluding blank-check companies, were on on Nasdaq, according to data compiled by Bloomberg. That included the third largest, Airbnb Inc.’s $3.8 billion IPO in December, which was the biggest listing on Nasdaq since Facebook Inc.’s $16 billion monolith in 2012.Crypto UpstartsPutting his trust in the stock exchange is Coinbase Chief Executive Officer Brian Armstrong, who started the company with Fred Ehrsam in 2012. Unlike most rivals, Coinbase’s founders always envisioned strict regulatory compliance as a cornerstone of the operation, which has helped the exchange to grow in the U.S., where many early Bitcoin traders and investors were located.Ehrsam left the company in 2017, and is now investing in crypto startups. Both Armstrong and Ehrsam own huge swaths of Coinbase.Coinbase last week said it expects to report a first-quarter profit of $730 million to $800 million, more than double what it earned in all of 2020.“They are going to build out a full financial services company,” said Barry Schuler, a co-founder of Coinbase investor DFJ Growth who until last year sat on the company’s board. “Like a crypto version of a Goldman Sachs or a Morgan Stanley.”Skeptics, RegulationThe company’s rapid growth hasn’t been without controversy, ranging from frequent outages during periods of heavy trading to new restrictions Armstrong placed on employee discussions of politics last fall. In March, Coinbase also settled with the Commodity Futures Trading Commission for $6.5 million, after the agency said the company reported inaccurate data about transactions and that a former employee engaged in improper trades.Then there are the crypto skeptics, as well as the regulators around the world who are stepping up oversight and casting doubt on Bitcoin’s usefulness as a currency.European Central Bank executive board member Isabel Schnabel, in an interview this month with Der Spiegel, called Bitcoin “a speculative asset without any recognizable fundamental value.”A publicly traded Coinbase was unimaginable several years back when Wall Street was full of crypto bears including JPMorgan Chase & Co.’s Jamie Dimon, who once called Bitcoin “a fraud.”Dimon later said he regretted saying that. His bank as well as Goldman Sachs Group Inc. advised on Coinbase’s direct listing.“I don’t think we sought Wall Street’s approval but we did seek to bring more transparency to crypto and to introduce crypto to more and more users,” Coinbase’s Hass said.Crypto Partners“Wall Street can become trader of crypto. They are going to be partners of us going forward,” she said.Coinbase’s early investors are celebrating.“I think Coinbase is this decade’s Microsoft, Netscape, Google or Facebook,” Garry Tan, founder and managing partner at Initialized Capital and an early-stage Coinbase investor, said in an interview with Bloomberg Television Tuesday.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.
(Bloomberg) -- The European Union set out its blueprint to raise nearly $1 trillion of debt over five years as it seeks to fund its recovery from the coronavirus pandemic.The bloc is aiming to issue the first debt under its NextGenerationEU stimulus as early as July and will use a “state of the art” platform to begin selling bonds and bills via a network of primary bank dealers by September, according to the bloc’s executive branch. Almost a third of the roughly 800 billion euros ($957 billion) will be in green bonds, using a framework of rules to be published in early summer, with issuance as early as the fall.“The Commission will need to execute financing operations up to EUR 150-200 billion per year over the period to end 2026,” the EU executive said Wednesday. “By June 2021, the Commission will be ready to begin mobilizing the funds.”It highlights the ambition of the EU’s first meaningful entry into bond markets, which will see the total of outstanding bonds closing in on that of Spain’s this decade. It also lays the foundation to challenge U.S. Treasuries in coming years as a haven asset, providing a boost to integration in the region and for its common currency.A One-Day Rival to Treasuries Is Born in Europe’s Pandemic BondsStill, EU member states still have to ratify the recovery proposals and a number of hurdles have arisen that could delay issuance. In Germany, there is a challenge to the package going through the courts, while in Poland a junior coalition party has also committed to opposing it.“We have no time to lose,” said Johannes Hahn, the EU’s budget commissioner, during a press briefing. “I appeal to all member states to speed up the process.”Bonds will be issued and regularly sold across a range of maturities from between three and 30 years, while there will also be short-dated bills, according to the Commission. It highlighted the latter as a quick way to raise money, at least in the early phase of the program. The program is 56 billion euros more than initial plans outlined last year that were predicated on 2018 prices.Hahn said that the Commission would need around 15 billion euros per year in extra revenue in order to service interest on the debt.Investors are likely to be keen. The bloc began selling social bonds tied to the funding of a jobs program last year, and those sales have broken global demand records. The EU will begin to issue debt via auction for the first time, as well as syndications via banks. The new platform will be provided by a national central bank that is already used by one of the “large sovereign issuers,” according to the document.The NGEU package includes grants and loans to member states. The loans will have 30-year maturities, with a grace period of 10 years as nations emerge from the crisis.A Rival to Treasuries? EU Bond Binge Raises Prospect: QuickTake“It’s no exaggeration to say our NGEU program will be a game changer on the capital markets,” said Hahn.(Updates with details throughout, Commissioner Hahn comments in sixth paragraph.)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.
(Bloomberg) -- Hundreds of thousands of small Indian businesses are planning to protest against large foreign retailers like Amazon.com Inc. in an event Thursday that coincides with the U.S. e-commerce giant’s annual seller jamboree in the South Asian nation, a sign of escalating tensions in the retail market of 1.3 billion people.The summit is the latest protest by local traders, which have long accused global retailers Amazon and rival Walmart Inc.-owned Flipkart of masquerading as platforms and employing unfair practices that hit at the livelihoods of small online and offline sellers. The trader groups’ event is named Asmbhav, or “impossible” in Hindi, and takes place on the first day of Amazon’s annual seller extravaganza, called Smbhav, or “possible.”“Over half-a-million sellers and leading small trader groups are participating in the Asmbhav event which will focus on ruined livelihoods because of the bullying and partisanship by e-commerce marketplaces,” said Abhay Raj Mishra of the non-profit Public Response Against Helplessness and Action for Redressal (PRAHAR), one of the organizers of the event spearheaded by a collective of Indian sellers.India’s small traders, distributors and merchants have petitioned the country’s courts and antitrust regulator to curb the foreign retailing giants ahead of a potential revision of foreign investment rules. The government is expected to tighten regulations that already bar e-commerce platforms from owning or controlling companies that sell on their platform, forging exclusive deals with makers of products such as smartphones, and discounting goods sold on their platforms.Amazon’s seller event -- which made its debut last year with founder Jeff Bezos in attendance -- will span four days this year and be held virtually. Key business figures including former Pepsico Inc. Chief Executive Officer Indra Nooyi, telecom operator Bharti Airtel Ltd.’s Chairman Sunil Mittal, India’s chief economic adviser Krishnamurthy Subramanian and Infosys Ltd. co-founder and Chairman Nandan Nilekani will be among panel speakers. Participants will include small businesses, startups, developers and retailers.To counter Amazon’s Smbhav awards to select sellers, organizers of the protest event will hand out tongue-in-cheek “Asmbhav awards” to Bezos, country chief Amit Agarwal and its India business partner, Narayana Murthy, the billionaire co-founder of Infosys. The event is backed by trade groups like the All India Online Vendors Association and the All-India Mobile Retailers Association.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.
After it shut down for two months last year, Jan-Ie Low and her family reduced the hours at their Las Vegas restaurant and converted much of their dining room into a food delivery hub. "If you don't adapt, you're going to be left behind," said Low, whose family has owned the SATAY Thai Bistro & Bar for more than 15 years. COVID-19 is hitting business owned by Asian Americans on multiple fronts.
(Bloomberg) -- Coinbase Global Inc.’s highly anticipated direct listing had touched off a frenzy in demand for all things crypto. A tumble shortly after its debut dented the euphoria.Bitcoin pulled back from an all-time high after the biggest U.S. crypto exchange tumbled more than 15% from its initial trading price. It opened at $381 a share in its direct listing shortly before 1:30 p.m. in New York and spiked as high as $429 in the first 10 minutes of trading before turning lower. It traded down 12% at $334 as of 3:30p.m. Bitcoin fell to its session low when Coinbase turned, and was down 2% to $62,000.The listing is seen pushing crypto even more into the mainstream of investing, exposing legions of potential buyers to the digital asset class that have grown into a $2 trillion industry in little more than a decade. Bitcoin, the original and biggest crypto coin, is valued at more than $1 trillion alone after a more than 800% surge in the past year.Coinbase is valued at $64 billion as expected, roughly the size of the parent company of the New York Stock Exchange. Given its size and visibility, Coinbase is likely to be popular with actively managed equity funds, particularly growth managers, essentially making a large swath of stock holders passive investors in crypto.“It’s a huge step forward for the industry and the legitimacy it brings in the eyes of investors and regulators,” Mati Greenspan, founder of Quantum Economics, said on Bloomberg TV.Read more: Bitcoin ETF Drumbeat Gets Louder as Eight Issuers File With SECGrowing mainstream acceptance of cryptocurrencies has spurred Bitcoin to a 120% rally since December, as well as lifting other tokens to record highs. That’s despite lingering concerns over their volatility and usefulness as a method of payment. Attention from regulators is poised to intensify as Coinbase becomes a public company.“As the direct listing on the Nasdaq will reach a wider investment base other than the usual crypto evangelists, investors must expect much greater government scrutiny,” said Nigel Green, CEO and founder of deVere Group.The token was volatile during the morning, climbing as much as 2.7% to $64,869. It has risen for seven straight sessions, its longest winning streak since the start of the year.(Updates prices in third paragraph)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.
(Bloomberg) -- Investors are pouring money into bonds backed by U.S. offices, shrugging off concerns about whether workers will ever fill them up like they did before the pandemic.About a third of all of this year’s commercial mortgage backed securities tied to single properties -- nearly $4 billion in total -- have helped finance prime office towers in large city centers, according to data compiled by Bloomberg. That’s despite the fact that Covid-19 has eviscerated demand for office space, decimating rents and slashing valuations.There’s no consensus on when a vaccinated workforce might, if ever, flock back, but the industry forecast isn’t great. Office demand may fall 10% to 31%, Deutsche Bank AG analysts said Wednesday.The Durst Organization helped feed hungry investors on Tuesday by pricing $1.1 billion of CMBS to refinance office buildings at 1133 Sixth Avenue and 114 West 47th Street in midtown Manhattan, with strong demand narrowing risk premiums. Bonds backed by loans on marquee properties in Philadelphia, Dallas, Houston, Los Angeles and elsewhere in New York have also been sold this year.Investors’ robust appetite for office-tower debt may be less a vote of confidence for the return of the urban office sector and more a straightforward hunt for yield in a tight credit-market environment, money managers say.“A lot of crossover corporate-bond buyers are looking at these office CMBS transactions for that incremental yield,” said Jen Ripper, a CMBS investment specialist at Penn Mutual Asset Management in Horsham, Pennsylvania. “But in the near term, there’s a lot of uncertainty for the urban office market, and rents, as well as vacancy rates, are under pressure as leases roll off. There are just too many question marks on the safest way to bring people back.”These securitized bonds, known as single-asset single-borrower CMBS, can offer higher yields than other asset-backed debt and corporate paper, and they are often floating-rate securities, an alluring quality at a time when many foresee interest rates rising. SASB securities have built-in safeguards to protect investors in the senior notes in case cash flows suffer, and are underpinned by top-quality assets, making buyers more comfortable, especially for the AAA tranches, Ripper said.The AAA rated slice of Wednesday’s Durst transaction priced at 98 basis points over a swap-spread benchmark for 10-year paper. That compares to a spread of only about 78 basis points over swaps for an average single A rated corporate bond with a seven- to nine-year duration, according to Deutsche Bank.“So you can pick up two full rating categories and incremental basis points,” said Deutsche Bank analyst Edward Reardon.Sales of SASB deals and so-called commercial real estate collateralized loan obligations will likely keep outpacing issuance of what is typically the more popular type of CMBS, known as conduits, in the second quarter, according to analysts at Bank of America Corp. Conduit deals are backed by dozens of different loans from various property sectors, including retail, hotels and industrial real estate.Overall private-label CMBS issuance stands at $29.5 billion this year, 19% higher than at this point in 2020.“It appears that the gradual return of office workers will play out over several years, and no one knows if occupancy will then achieve anywhere near its previous levels,” said Christopher Sullivan, chief investment officer of the United Nations Federal Credit Union.U.S.Big banks started releasing quarterly reports on Wednesday. JPMorgan Chase & Co. released $5.2 billion from its credit reserves, boosting earnings. The company’s fixed-income, currency and commodity trading revenue was stronger than expected, up 15%, while Chief Executive Officer Jamie Dimon said loan demand remains “challenged.”Goldman Sachs Group Inc. reported FICC sales & trading revenue of $3.89 billion, up 31% from a year earlierUnited Airlines Holdings Inc. shifted the majority of its $9 billion junk-debt sale to leveraged loans, the latest company to seek more flexible financing in the floating-rate assetsThe leveraged-loan market saw several other adjustments, including:CoreLogic Inc. slashed its offering to $3.25 billion from $4 billion, though pricing firmed to the tight end of guidanceNutrisystem Inc. inserted several covenant changes, which widened pricing on its dealTencent is holding off marketing a planned dollar bond deal Wednesday, according to people familiar with the matter, as Asia credit markets have been roiled by the plunge in one of China’s biggest distressed-asset managersFor deal updates, click here for the New Issue MonitorFor more, click here for the Credit Daybook AmericasEuropeM&A is driving performance in Europe’s secondary market, with Globalworth Real Estate Investments Ltd.’s bonds jumping in the wake of a takeover bid from CPI Property Group and Aroundtown.The company’s 2025 and 2026 bonds are the best performers in the euro high-grade marketSlovakia is the latest European sovereign to offer new debt, marketing a 15-year euro-denominated issue; Spain, Austria and the U.K. tapped the market with long-dated issues in recent daysThe operator of Amsterdam’s Schiphol airport has hired banks for a potential dual-tranche euro bond offeringAsiaAsian dollar bonds sold off Wednesday as concerns spread about the financial health of China Huarong Asset Management Co., one of the country’s distressed debt managers.Debt offerings slowed amid the turbulence, with just Chinese brokerage Guotai Junan and South Korea’s Shinhan Bank marketing dollar bonds.In Japan, Toshiba Corp.’s debt risk surged after KKR & Co. and Brookfield Asset Management Inc. were said to explore offers for the Japanese conglomerate, increasing the possibility it will be taken private and reduce information disclosure for investors.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.
(Bloomberg) -- The Federal Reserve will likely taper off its bond purchases before considering raising interest rates, Chairman Jerome Powell said.“We will reach the time at which we will taper asset purchases when we’ve made substantial further progress toward our goals from last December, when we announced that guidance,” Powell said Wednesday in a virtual event hosted by the Economic Club of Washington. “That would in all likelihood be before -- well before -- the time we consider raising interest rates. We haven’t voted on that order but that is the sense of the guidance.”Policy makers will wait until inflation has reached 2% sustainably and the labor-market recovery is complete before considering lifting interest rates, and the combination is unlikely to happen before 2022, he said. Their forecasts last month signaled rates being held near zero through 2023.“When the purchases go to zero, the size of the balance sheet is constant, and when bonds mature you reinvest them,” Powell said. “And then another step -- and we took this late in the day in the last cycle -- was to allow bonds to start to runoff. And we haven’t decided whether to do that or not.”Powell added that he doesn’t think the Fed would actually sell bonds into the market, something it also didn’t do during the recovery from the 2008 financial crisis.Patience PledgedPowell and his colleagues have pledged to be patient and maintain aggressive monetary policy support, even as the economic recovery from the pandemic picks up speed. That dovish view has helped U.S. stocks reach fresh record highs. Recent data has also painted a brighter picture as vaccinations spread and the economy reopens, with employers adding 916,000 jobs in March.“Most members of the committee did not see raising interest rates until 2024, but that isn’t a committee forecast, it isn’t something we vote on or or act on as a group -- it really is just our assessment,” Powell said. “Markets focus too much on what we call the economic predictions, and I would focus more on on the outcomes that we’ve described.”Fed policy makers substantially lifted their growth and employment forecasts at the central bank’s meeting last month. Their median estimate sees the economy expanding 6.5% this year and the unemployment rate declining to 4.5% by the end of 2021.Powell said the U.S. is going into a period of faster growth and job creation, and that the main risk is another spike in Covid-19 cases due to virus strains that may be more difficult to treat.The Fed chair said it would be wise to keep wearing masks and stay socially distanced “at least for a while longer.”Minutes of the central bank’s March meeting released April 7 said policy makers expect it will likely be “some time until substantial further progress” was made on employment and inflation. That refers to the tests they’ve set for scaling back bond purchases of $120 billion a month.(Updates with comment on sequence from first paragraph.)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.
(Bloomberg) -- It’s just a quarter of the way through 2021 and stocks have already leaped past Wall Street’s year-end forecasts. They’ve jumped 10% and priced in so much optimism that it will take two more years for earnings to catch up.Is that enough for bulls? Nope. In a market that has plowed through records once every five days, the only things expanding faster than valuations are investor expectations. At Citigroup, an indicator that compares levels of panic to euphoria in the market has been pinned on elation all year, while a Bank of America model weighing optimism among sell-side analysts sits at a 10-year high.To be sure, animal spirits have calmed at the market’s loopiest edge, with penny-stock volume down and the meme craze receding. But robust appetite persists in its tamer -- and still speculative -- districts. And while fortunes would have been sacrificed repeatedly by anyone expecting this rally to overheat, the juxtaposition of stretched sentiment and a still-healing economy is a source of growing anxiety for professionals.“It is strange to see these sentiment measures elevated at the same time the economy is still recovering,” said George Mateyo, chief investment officer at Key Private Bank. “We’ve had a shot in the arm with respect to fiscal and monetary stimulus” and its impact on the economy “is likely to continue for a while longer, but at some point it’d fade.”Not that there aren’t a lot of reasons to stay optimistic, with many data points coming in stronger than expected, vaccine rollouts (mostly) continuing and earnings expected to buttress the bull case. Taking any single sentiment indicator at face value and relying on it as a sell signal could have meant missing out on one of the largest year-over-year rallies ever recorded.Sentiment readings “are hovering at extremely high levels and we could have been worried about them three months ago -- we could have been worried about them one month ago,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, told Bloomberg TV. “They are telling us that the gains are going to be harder to come by, that if we do get negative catalysts, we are vulnerable to the downside. But I think it’s hard to view any of this data as an automatic sell signal right now.”Doubters point to everything from potential Fed tapering and tax hikes to the potential for fatigue among retail investors. A look under the surface already shows a shift in leadership that’s tilting toward companies whose growth is seen as more resilient during an economic slowdown. The frenetic buying of cyclical shares like energy and banks has cooled during the past month. Vaulting back to the top of the leader board are defensive stocks like technology, real estate and utilities.Bank of America’s “sell side indicator,” which aggregates the average recommended equity allocation by strategists, has risen for a third month to a 10-year high. But the cyclical rebound, vaccines and stimulus are all largely priced in already, wrote strategists led by Savita Subramanian. Meanwhile, a record amount of equity funds is being absorbed: Inflows to stocks over the past five months, at $576 billion, exceed inflows from the prior 12 years, according to the bank.Citigroup’s panic/euphoria model, which tracks metrics from options trading to short sales and fund flows, has remained in “euphoric” territory for much of this year, “generating a 100% historical probability of down markets in the next 12 months at current levels,” according to the bank’s chief U.S. equity strategist Tobias Levkovich.Options traders are placing bets the calm won’t last. The middle part of the VIX curve shows many are expecting volatility to pick up, with the spread between the VIX -- the market’s fear gauge -- and futures on implied 30-day volatility four months from now near the highest level in about five years. One trader last week wagered that the fear gauge will rise toward 40, and won’t be lower than 25, in July. The trader appears to have bought a total of about 200,000 call contracts, an amount almost as big as the total daily volume of VIX calls, based on the 20-day average.“Sentiment -- it’s not usually enough on its own to tip a bull market over, but it does mean that if there is something that causes the broad market to flinch, it can sell off quicker and harder,” said Ross Mayfield, investment strategy analyst at Baird. “When sentiment is running this hot, you’re hitting a new all-time high every day, at some point there will be a correction. Paying up for protection, if you have short-term money, makes plenty of sense.”Going all-in on equities for fear of missing out -- while staying protected against any downturn -- is the preferred posture of hedge funds. Lured by an almost uninterrupted rally since November, the industry has boosted their net exposure to equities to multi-year highs. Meanwhile, they’ve stepped up hedging through macro products such as index futures and exchange-traded funds. Their short sales on ETFs, for instance, increased 11% this year through March 26, according to data from Goldman Sachs Group Inc.’s prime brokerage unit.The hedged-long approach has gained traction on Wall Street. On Friday, JPMorgan Chase & Co. strategists led by Nikolaos Panigirtzoglou recommended investors hold on to risky assets such as stocks but add hedges through options in credit and stocks. One looming risk for the market is a continuing retreat from retail investors, a steadfast driver behind the yearlong bull market, they said.“We don’t believe that the equity bull market is yet exhausted,” the strategists wrote in the note. But “there is clear evidence of elevated equity positioning by retail investors and thus a vulnerability for the equity market going forward,” they said.Gene Goldman, chief investment officer at Cetera Financial Group, says his firm is looking for ways to de-risk its portfolios. “People are seeing the recovery, they’re seeing good things happening today, which is great, but it’s a classic case of ‘buy the rumor, sell the news’ and what they should be doing is looking six-to-nine months from now,” he said. “There are many headwinds that are going to hit the market.”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.
(Bloomberg) -- The U.S. economy is emerging from a year of lockdowns in a big way and that’s showing up in the oil market.A rolling average of U.S. gasoline demand rose to the highest since August, according to the latest data from the Energy Information Administration. The nation’s refineries are processing the most crude crude oil in over a year just after the pandemic started as they make more fuel for the upcoming summer travel surge. At the same time, crude supplies fell by the most in two months, bringing nationwide stockpiles to the lowest since late February.The data underpin the recovery in the oil market a year after the pandemic spurred a historic demand crash. Gasoline demand has been leading the comeback, with more gains in diesel and jet fuel needed to provide sure footing for markets after the pandemic slump. West Texas Intermediate crude futures surged more than 5% Wednesday and broke out the narrow trading range they had been stuck in since mid-March.The oil rally comes during a period of quicker economic expansion, as cited in a speech Wednesday by Federal Reserve Chair Jerome Powell. Gasoline prices have averaged about $2.86 as gallon this spring amid predictions they should hit $3 a gallon this year for the first time since 2014.Careful supply management by refiners has helped maintain balance. Only 300,000 barrels of gasoline were added to storage last week, even with more production. Stockpiles are about 28 million barrels below where they were a year ago.“These numbers are quite constructive for gasoline,” said Houston oil analyst Andy Lipow. “We are headed to what looks like a decent summer driving season with Americans having been pent up with their desire to get out on the road.”To be certain, the market still has a long way to go for a full recovery, gasoline demand is at 8.8 million barrels day compared with 9.4 million barrels seen in April 2019.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.
(Bloomberg) -- China just slapped a record antitrust fine on Alibaba Group Holding Ltd. The company thanked the government and investors breathed a sigh of relief.Alibaba’s American depositary receipts climbed 9.3% on Monday in New York, their biggest jump in almost four years. For Jack Ma, the founder of the e-commerce giant, it meant his fortune increased by $2.3 billion to $52.1 billion, according to the Bloomberg Billionaires Index.The $2.8 billion fine is less severe than some investors feared and is based on only 4% of the company’s 2019 domestic sales, far less than the maximum 10% allowed under Chinese law. While the internet giant will have to adjust the way it does business, its vice chairman said regulators won’t impose a radical overhaul of its e-commerce strategy and its chief executive officer declared Alibaba ready to move on.“Alibaba would not have achieved our growth without sound government regulation and service, and the critical oversight, tolerance and support from all of our constituencies have been crucial to our development,” the company said in an open letter. “For this, we are full of gratitude and respect.”Ma, who up until last year was China’s richest person, has lost billions since his nation’s regulators began an anti-monopolistic campaign, halting the initial public offering of his Ant Group Co. payments company just two days before it was scheduled to go public. He is now China’s third-richest person after Zhong Shanshan of bottled-water company Nongfu Spring Co. and Tencent Holdings Ltd.’s Pony Ma.Separately, China’s central bank ordered Ant to become a financial-holding company that will be regulated more like a bank. The move, announced on Monday, will have far-reaching implications for the firm’s growth and its ability to press ahead with an initial public offering. Alibaba shares opened 3.4% higher in Hong Kong on Tuesday.(Updates to include Ant overhaul and stock move in last paragraph)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.
(Bloomberg) -- In Argentina, financial markets are all but dead. From stocks to bonds to traditional foreign-exchange venues, trading volumes are razor thin after the government slapped on rigid currency restrictions in the lead up to last year’s debt default.Except, that is, in one unusual corner of markets. There, brokerages are doing a bustling business -- and raking in record profits -- by handling the types of arcane transactions that Argentines use to convert pesos into dollars and circumvent the limits the government placed on obtaining foreign currencies. At least five firms reported income surges of 500% or more last year, with one of them, a large shop called Allaria Ledesma, posting a 2,200% increase.“We’re going through a boom,” said Julio Merlini, the chief executive officer of Balanz Capital, which has doubled its client base and boosted its workforce by more than half since the controls were imposed in 2019. “People stopped investing in mutual funds and timed deposits and are dollarizing portfolios.”But as Argentines eschew traditional investments to focus on converting their assets to dollars before the peso weakens even further, banks are forbidden from operating in the so-called blue-chip swap markets used to get foreign currency. That helped lead the sector to its worst performance in 13 years. A steady stream of bankers have left to join brokerages since the restrictions were put in place in 2019, with Merlini estimating they can earn about 50% more in their new jobs.It’s all part of the fallout from former President Mauricio Macri’s decision to impose capital controls amid a rush for the doors after the political opposition won a key primary in 2019. The move left foreign investors with no easy way to get their money out of the country, and crimped the ability of Argentines to buy dollars, leaving them to either watch the value of their peso savings tumble amid rampant inflation or seek an escape in the blue-chip swap.Called the contado con liquidacion in Spanish, the swap has been around for almost two decades in Argentina, with use peaking when restrictions are dialed up and the peso’s prospects deteriorate. It’s usually undertaken by buying peso assets locally and then selling them abroad for dollars, creating an exchange rate that’s currently about 38% weaker than the official one.It’s one of a number of parallel rates that have taken hold in Argentina amid the economic turmoil of the past few years. The country has been rocked by a 60% drop for the peso since the end of 2018, a $60 billion default by the federal government and the worst economic collapse since 2002 last year amid one of the region’s strictest pandemic lockdowns.As the blue-chip swap took off, more typical financial transactions have seen reduced volumes. Financial entities traded a daily average of $167 million in the spot foreign-exchange market last year, down 67% from a year earlier. Fixed-income volume in the Mercado Abierto Electronico, which is owned by banks, fell by more than half to $96 billion.At the Argentine Stock Exchange, mostly the domain of brokers, fixed-income volumes jumped 57% in 2020 to $247 billion.The shifts have propelled a surge in bank departures as investment professionals seek out higher wages and less regulatory scrutiny. At least a dozen prominent bankers have made the switch since mid-2019, including HSBC Plc trader Juan Manuel Truppia’s jump to TPCG Valores. Other high-profile moves include Manuel Rocha-Nan’s switch from head of corporate sales at Banco Galicia to Max Capital, and Carolina Gialdi, a fixed-income strategist at BTG Pactual, who also joined Max Capital.“The brokers today are fed by the banks,” said Juan Rodriguez Braun, a partner at Max Capital, which increased its workforce by 25% in 2020 to 50 employees. Making the move “offers higher remuneration associated with the results of the company.”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.
(Bloomberg) -- It turns out it’s not just some of Extended Stay America Inc.’s top shareholders who oppose its proposed $6 billion takeover. Two of the company’s own directors are against it as well.Extended Stay disclosed in a regulatory filing late Tuesday that while the majority of the board approved the deal with Blackstone Group Inc. and Starwood Capital Group, Neil Brown and Simon Turner opposed it, saying the $19.50-a-share price was insufficient, and below similar transactions in recent years.They were also concerned about the timing of the deal in light of a recent rebound in hotel stocks, and the potential for further recovery with the U.S. stimulus plan and increasing Covid-19 vaccinations, the filing shows.Turner was of the belief a transaction below $20 a share was inappropriate, and also was concerned about changes to the termination fee that were made in order for the buyers to raise their bid to $19.50 a share from $19.25, according to the filing.Extended Stay has two boards, one for the C-Corp and one for the real estate investment trust. Both Brown and Turner sit on the REIT board, according to the company’s website.The concerns raised by the two directors are similar to those of five top investors who came out against the deal. Tarsadia Capital LLC, Hawk Ridge Capital Management, SouthernSun Asset Management LLC, Cooke & Bieler LP and River Road Asset Management LLC have all said they plan to vote against the transaction.‘Obviously Inadequate’“We are dismayed that the board would approve such an obviously inadequate price and shocked that the board did so over the objection of two of its own members,” Tarsadia said in an emailed statement.Collectively, the investors own roughly 13% of Extended Stay’s outstanding common stock, according to data compiled by Bloomberg.Representatives for the other opposing investors weren’t immediately available for comment. A representative for Blackstone and Starwood declined to comment.Extended Stay defended its decision to sell, arguing the deal would provide immediate, certain and compelling value for shareholders.“The company ran a thorough, rigorous and thoughtful process, which included a careful consideration of the alternatives available,” a spokesperson said in an email Tuesday. “I would note that the company has thoughtful and independent board members, and paid careful attention to the points raised by the two dissenting directors. However, after detailed discussions, the boards ultimately concluded that the immediate cash certainty at a premium to the valuation over multiple time periods was in the best interest of shareholders.”‘Lose-Lose-Lose’Michael Bellisario, an analyst with Robert W. Baird & Co., said in a note to clients it was “intriguing” that two board members oppose the transaction, and that shareholders seeking a sweetener are likely to focus on this. But he said a voted-down deal would be a “lose-lose-lose” for investors because the company would likely trade back to $16 a share.Extended Stay shares have traded above the offer price since March 22. They were up 0.4% to $19.80 at 12:36 p.m. in New York Tuesday, giving the company a market value of $3.5 billion.Blackstone and Starwood agreed last month to acquire Extended Stay in a 50-50 joint venture in what would be the biggest deal in the hotel industry since Covid-19 decimated the travel business. The filing Tuesday shows that talks between the parties were on and off since 2017, and that at least two other undisclosed potential buyers had expressed interest over the years.Investor Tarsadia had also discussed numerous investment ideas with Extended Stay beginning in August 2020, including various transactions the company could pursue, the documents show.(Updates share price in paragraph 13, adds additional details in final paragraph.)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.
(Bloomberg) -- Nomura Holdings Inc. is beginning to tighten financing for some hedge fund clients following the Archegos Capital Management LP fiasco that may cost Japan’s biggest brokerage an estimated $2 billion, according to people familiar with the matter.The restrictions are part of a wider review of Nomura’s prime brokerage that may lead to a scaling back of the business, one of the people said, declining to be identified as the details are private and no decision has been reached. Nomura is tightening leverage for some clients previously granted exceptions to margin financing limits, another person said.A representative for the Tokyo-based firm declined to comment.Nomura is taking steps to reduce risk at its prime brokerage unit in the wake of the Archegos collapse that may result in combined losses of $10 billion for global banks, according to estimates from JPMorgan Chase & Co.The Japanese brokerage joins a swathe of high-profile lenders caught up in the failure including Credit Suisse Group AG, which disclosed a first-quarter charge of 4.4 billion Swiss francs ($4.76 billion) for its ties to the New York-based firm.Credit Suisse has also been tightening financing terms for hedge funds and family offices, in a potential revamp of new industry practices after the blowup, people with direct knowledge of the matter said last week. The Swiss bank is also planning a sweeping overhaul of the hedge fund business at the center of the incident.‘Too Early’Nomura is examining the cause of the possible losses and it’s too early to say how it might impact earnings, an executive at the firm said in March, asking not to be identified. They declined to say how much the company has unwound positions linked to Archegos, which made highly leveraged bets on stocks that imploded when the investments suddenly lost value last month.Shares in Nomura lost 2.6% as of 11:25 a.m. in Tokyo on Wednesday.Under Kentaro Okuda, who became chief executive officer last April, Nomura’s net income reached a 19-year high for the nine months ended in December, driven by a boom in trading and investment banking at home and overseas. The brokerage said in late March that it had an estimated $2 billion claim against a U.S. client, which Bloomberg identified as Archegos. The announcement sent the stock plunging 16% on March 29.Although Nomura is yet to confirm exactly how much it will lose from Archegos, SMBC Nikko Securities Inc. analysts led by Masao Muraki have said that it may post a 95 billion yen loss in the fourth quarter as a result of the trades.The brokerage isn’t the only Japanese financial institution taking a hit from Archegos. Mitsubishi UFJ Financial Group Inc.’s securities unit is booking a $270 million loss from the debacle, while Mizuho Financial Group Inc. faces about 10 billion yen in potential losses, Bloomberg has reported.Prime-brokerage divisions cater specifically to hedge funds, lending them cash and securities and conducting their trades. The relationships can be very lucrative for investment banks as well as a significant source of revenue.(Updates with details of restrictions in second paragraph)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.
(Bloomberg) -- Canadian investment firm RF Capital Group Inc. jumped to its highest point since October 2019 after rival Canaccord Genuity Group Inc. said it’s willing to “substantially” raise its takeover offer.Toronto-based RF Capital rose as much as 12% to C$2.40 in Toronto after Canaccord Chief Executive Officer Dan Daviau told Bloomberg his firm is ready to boost its bid to seal a deal. RF rebuffed Canaccord’s initial proposal of C$2.30 per share.“We’re prepared to increase our price substantially, but we don’t know what price they’re looking for because they won’t talk to us,” Daviau said in an interview. A transaction would unite two of Canada’s largest remaining independent firms in wealth management, a part of the industry that’s dominated by the country’s large banks.The updated proposal would include improved terms for RF Capital’s investment advisers, Daviau said, allowing them to cash out some holdings of shares held in escrow. He declined to say what price Canaccord would be willing to pay. The current proposal values RF at C$367 million ($292 million).Richardson ControlCanaccord has little prospect of taking control of RF without winning the support of the Richardson family, whose closely held conglomerate, James Richardson & Sons Ltd., owns 44% of RF Capital, according to data compiled by Bloomberg.RF Capital’s minority shareholders “should be provided an opportunity to consider the proposal,” Canaccord said Wednesday in a written statement. “Canaccord Genuity is exploring legal options available, as well as options of taking our offer directly to RCG shareholders.”RF Capital shares gained nearly 8% Wednesday as of 12:48 p.m. Wednesday and are up 31% since Canaccord’s interest became public in March.Canaccord has said that combining the firms would provide RF Capital’s investors with better value for their shares and open opportunities for RF’s wealth advisers. By publicly disclosing the proposal, Daviau is making an open appeal to those advisers, who form an influential bloc within RF because they collectively own 31% of the shares.RF has repeatedly rejected Daviau’s approach. “After consideration, the Board has again determined that pursuing your proposal is not in the best interests of RF Capital Group Inc.,” Chairman Donald Wright said in a letter posted on the company’s website, without elaborating.Canaccord’s wealth unit had C$85.2 billion in client assets as of Dec. 31, according to an investor presentation. RF had C$32.7 billion in assets under administration as of March 31.Until last year, RF Capital operated under the name GMP Capital. It used to be a major player in investment banking and trading in Canada’s junior energy and mining markets, but it sold its capital markets business to Stifel Financial Corp. in 2019 to focus on wealth management and investment advice.(Updates with share price move and other new information)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.
(Bloomberg) -- Brazil’s central bank is closely monitoring if a recent spike in commodity prices will continue to affect core inflation, and particularly expectations for 2022, as it removes monetary stimulus, according to its President Roberto Campos Neto.The bank delivered an outsized rate hike last month and promised another in May as it realized that what it deems as temporary price shocks were having a more lasting impact on inflation, even when more volatile items such as food and energy were excluded.“We understand that this process had some contamination in the core inflation numbers,” Campos Neto, 51, said in a Bloomberg TV interview late on Tuesday. “We keep vigilant on how this process is developing.”Brazil’s central bank is trying to put a lid on accelerating inflation without suffocating the recovery of Latin America’s largest economy. It’s an especially delicate balance to strike as the nation reels from one of the world’s worst Covid death tolls and partial lockdowns. At the same time, investors are fretting over faster spending and populist inclinations of President Jair Bolsonaro.Read More: Probe Into Bolsonaro’s Handling of Pandemic Adds to Market Woes“We need to move rates but still be on stimulative grounds,” Campos Neto said during the interview, without ruling out bigger interest rate hikes. “Nothing is written in stone, we’re going to look and see how this develops.”He added that the central bank is “looking at 2022 more and more” to decide on rates.His ability to balance both challenges could define his career at the helm of the monetary authority. Since taking over the post in 2019, the former Banco Santander SA executive oversaw deep cuts to borrowing costs aimed at propelling Brazil out of a virus-driven downturn.But with annual inflation currently at a four-year high of 6.10%, well above this year’s 3.75% target, concern has shifted to the eroding purchasing power of Brazilians. According to the country’s statistics institute, surging transportation costs are a primary cause for the jump with fuel prices rising over 11% last month alone. For 2022, inflation expectations are slightly increasing above the 3.5% target.In effort ease the inflationary pain, policy makers raised rates by 0.75 percentage point in March -- the most in a decade -- and signaled another hike of the same magnitude is coming in May, taking the Selic rate to 3.5%.Many investors believe more aggressive hikes are needed to get inflation under control. Traders in interest rate futures are betting that policy makers will lift borrowing costs to over 6% by year’s end, while economists surveyed by the bank see borrowing costs at 5.25% in December.Fiscal ConcernBut Campos Neto said the swap market is being affected by doubts over Brazil’s commitment to get public finances in order. “We believe fiscal is imposing a premium on the curve, and this premium contaminates expectation that ends up in inflation,” he said.Similar concerns have weakened the Brazilian real nearly 9% so far this year, but Campos Neto said the central bank will continue to limit its interventions to moments of “market dysfunction,” as policy makers don’t target any specific level for the currency, only for inflation.“The important thing is how the real contaminates the inflation channel through the short-term inflation and through its expectations,” he said. “We’re vigilant on that and we’ll act if needed.”The Brazilian real was little changed early on Wednesday as investors awaited developments about this year’s budget impasse.Under pressure from political allies amid a devastating pandemic, Bolsonaro has broken past commitments to rein in public spending and adopted a more interventionist stance toward state-owned companies. In February, he ousted the head of state oil giant Petrobras for allowing fuel costs to rise according to international market prices.Meanwhile, the government continues to dole out more emergency aid as new and more lethal wave of the virus persists. Brazil broke daily records for Covid deaths twice last week, and hospitals nationwide are at capacity with patients sickened by the disease.BRAZIL INSIGHT: Track the Second Wave - High-Frequency DashboardWhile Campos Neto insisted the central bank has no say in fiscal policy, he made it clear that confidence in Brazil’s public finances will be crucial to the future of interest rates.“We think it is very important to pass on a message of fiscal discipline,” he said.(Updates with Campos Neto’s comments on the currency after 12th paragraph.)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.
Before sitting back and letting the IRS do the work, experts say some people should at least consider filing an amended return.
Fed Chairman Jerome Powell said that he has not yet met with President Joe Biden, illustrating the administration’s caution in approaching matters at the independent central bank.