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© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Crude oil markets were quite choppy during the day on Monday but ended the session somewhat positive as we continue to see quite a bit of noise in the market.
The S&P 500 hit a record high on Tuesday and the Nasdaq jumped as investors flocked to technology-related stocks after the United States' pause in the rollout of Johnson & Johnson's COVID-19 vaccine sparked fears of a delay in a broader economic rebound. The drugmaker's shares fell 2.7% to a one-month low as calls for pausing the use of its COVID-19 vaccine after six women developed rare blood clots dealt a fresh setback to efforts to tackle the pandemic. The technology and consumer discretionary sectors, which house high-flying technology names that flourished during coronavirus-induced lockdowns last year, rose 0.6% and 0.4%, respectively.
Insurance broker Aon's offer to sell assets in five EU countries and takeover target Willis Towers Watson's reinsurance arm may not be enough to address EU competition concerns, people familiar with the matter said on Tuesday. Aon is looking to the acquisition to create the world's largest insurance broker ahead of Marsh & McLennan Companies Inc as the industry grapples with rising claims and new challenges from the COVID-19 pandemic and climate change. Last Friday, the London-headquartered company submitted concessions to the European Union's competition watchdog, which did not disclose details in line with its policy.
Further, core inflation too accelerated to more than a 2-year high, at close to 6.0% which does not offer comfort. Continued comfort on food and goods inflation as production continues to normalize should prove supportive. "Upside from crude oil prices, if any, could be offset by a likely hold or reduction in duties on petroleum products, softening of demand due to a resurgence in COVID-19 infections, and likelihood of a normal monsoon outturn (as per private weather forecasting firm AccuWeather) in 2021."
The listing could spur newbie investors to try cryptocurrencies.
Nobuaki Kurumatani is leaving after the firm received an offer from his former employer, CVC.
(Bloomberg) -- Copper surged into the first two months of 2021 on expectations that it would smash through record highs, and almost did so in late February. So why has it been treading water since?The following four charts show how both physical and financial indicators could be turning against the metal and threatening to push prices lower, even while analysts say the longer-term picture is still strong. The headwinds for the industrial bellwether metal underscore the tenuousness of the global recovery from the coronavirus pandemic.Warnings From WarehousesStockpiles in warehouses tracked by exchanges in London and Shanghai have surged in recent weeks, helping ease concerns over tight supplies. Inventories monitored by the London Metal Exchange have more than doubled since late February. Stocks on the Shanghai Futures Exchange rose for nine straight weeks through early April in the longest run since 2014.Deflating PremiumSigns of weakening are also emerging in China’s appetite for foreign copper. The Yangshan copper premium, a gauge of China’s import demand, has declined by more than 40% from this year’s high.The falloff could be a precursor to a broader plateauing in demand as economies emerge from the pandemic, according to Ed Meir at ED&F Man Capital Markets.Credit Growth CurtailmentOne of the big headwinds for copper in recent weeks has been concern over a potential curtailment in credit growth in China, as part of Beijing’s efforts to avoid asset bubbles. That could also lead to weakening in key consumption areas, tempering optimism over the outlook after investors bet that reopening economies and massive stimulus globally would fuel demand for the metal.“As China retools its economy on a consumer-led path, it is unlikely the country will continue to demand the same amount of commodities,” JPMorgan Chase & Co. analysts including Natasha Kaneva said in a note.Mine SupplyAnother big concern for the copper market is that the resurgence in coronavirus cases will mean more lockdowns, crimping demand for the economic bellwether. While those restrictions could also mean lower supplies as miners struggle to maintain output, there are few signs of a significant slowdown in output so far.Codelco, the world’s biggest copper producer, managed to lift first-quarter output despite a surge of infections in Chile, Chairman Juan Benavides said in an interview. Chile’s Mining Undersecretary Edgar Blanco said the nation expects to be able to navigate both the pandemic and a slew of wage talks to increase output this year.On Tuesday, copper rose 0.6% to $8,915 a ton on the LME by 10:16 a.m. in London.Still, there are signs that supplies could be starting to come under strain. In the past several months, Chilean output has been lower than year-ago levels, and analysts say spending on infrastructure and green-energy projects will eventually bolster demand. And Citigroup Inc. sees copper hitting a record $10,500 a ton in three to six months.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.
Norwegian Air now aims to raise up to 6 billion crowns ($711 million) in fresh capital, up from a planned 4.5 billion, to bolster its resources before emerging from bankruptcy protection next month as the pandemic continues to curb travel. Financed largely by debt, Norwegian Air grew rapidly, serving routes across Europe and flying to North and South America, Southeast Asia and the Middle East before the COVID-19 pandemic plunged the airline into crisis. "We want to take a conservative approach at a time when the pandemic and travel restrictions continue to create unpredictability in the travel sector," Chief Executive Jacob Schram said in a statement on Wednesday.
(Bloomberg) -- Online travel platform Trip.com Group Ltd. has raised about HK$8.5 billion ($1.1 billion) in its Hong Kong second listing after pricing the shares at HK$268 each.The company sold 31.6 million shares in the Hong Kong offering, according to a statement on Tuesday. The price represents a discount of about 2% to Trip.com’s closing price of $35.20 on Monday on the Nasdaq.One of Trip.com’s American depositary shares is equivalent to one ordinary share. The shares are due to start trading in Hong Kong on April 19.Trip.com’s U.S. shares have risen about 4% this year, giving the firm a market capitalization of $21 billion. It is part of a wave of U.S.-listed Chinese companies seeking a trading foothold in Hong Kong which has seen some of the country’s biggest tech giants such as Alibaba Group Holding Ltd. and JD.com Inc. raise over $36 billion since late 2019, data compiled by Bloomberg show.The second listings act as a way to hedge against the risk of being kicked off U.S. exchanges as a result of rising Sino-U.S. tensions, as well as to bring in more Asia-based investors. The U.S. Securities and Exchange Commission has said it will start implementing a law passed last year requiring overseas companies to let American regulators inspect their audits or face delisting.Recent second listings from the likes of Baidu Inc. and Bilibili Inc. fared less well than ones last year as they got caught up in a broader selloff of technology shares as investors rotated into sectors expected to benefit from a recovery of global growth. But tech names have since staged a comeback, with the Nasdaq Composite Index rising from lows hit at the beginning of March.JPMorgan Chase & Co., China International Capital Corp. and Goldman Sachs Group Inc. are joint sponsors for Trip.com’s listing.(Updates with company confirmation throughout the story.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The overhaul will force the Alibaba-backed group to become a financial holding firm.
(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.
As Coinbase, the cryptocurrency exchange, goes public on Wednesday, financial advisers want you to remember the difference. Enter Coinbase, a platform with 56 million verified users that enables the purchase and sale of crytpocurrencies like Bitcoin and Ethereum, which appear to just keep increasing in value. An obvious investment, considering the expert take that cryptocurrency is at a “tipping point,” right?
Roth accounts serve a special tax purpose — they’re funded with after-tax dollars and thus, are distributed tax-free (compared with a traditional account, where the money is contributed and grows tax-free but is taxed at withdrawal). Roth conversions are similar — investors move the money from their traditional accounts into Roth accounts and pay the tax upfront.
(Bloomberg) -- Malaysian corporate dollar bonds are the worst performers in Southeast Asia this year but are clawing back some ground as economic growth looks set to outpace neighbors.The securities have returned about 0.9% this month, cutting their loss for the year to 3.5%. While that’s still worse in 2021 than Thailand, the Philippines and a broad Asian dollar debt index, there are signs that the Malaysian notes could still rebound furtherHard-currency bond issuance from Malaysian companies is limited and yields are “attractive,” according to Joevin Teo, head of Asian fixed income at Amundi Asset Management in Singapore. The average yield on the securities has risen about half a percentage point this year to 2.7% amid reflationary pressures globally, a Bloomberg Barclays index showsMalaysia’s economy will likely expand by about 18.3% this quarter from the year-earlier-period, topping growth by other nations in the region, according to the median forecast of economists surveyed by Bloomberg. For the full-year, economists expect growth of 5.5%, beating Indonesia and ThailandThe relative performance of Malaysian company dollar bonds will be heavily influenced by the direction of U.S. yields this year, given the smaller average spread cushion on the debt than some peers. That makes returns on the notes, which are some of the highest rated in Southeast Asia, more vulnerable to rising ratesFor Southeast Asian bond pipeline, click hereIslamic Finance - Malaysia’s SukukMalaysia is considering the sale of a possible dollar-denominated sustainable sukuk, which would mark the first U.S. currency sovereign Sukuk from Southeast Asia this yearInvestors in Malaysia’s government dollar Sukuks have lost 3.3% on average this year, the worst performance globally among such securities, partly because the country has some of the longest such securities in the world. Ones maturing in 2045 and 2046 have gained more than 2 cents this month as longer-dated benchmark yields have retreatedPhilippine - Bond BuybackTwo of the largest listed companies in the Philippines are capitalizing on the selloff in bonds this year to buy back their own debtSan Miguel, SM Investments to Redeem Bonds EarlySan Miguel Corp. will redeem the outstanding amount of an $800 million note due in 2023. The bond has been the worst performer among the beer maker’s dollar securities this year, returning 0.9% compared with an average of 4% for all U.S. currency bonds issued by group companies, according to the data compiled by BloombergSM Investments Corp. will exercise early redemption option on its 3.33 billion peso-denominated securities ($69 million) due 2024 at 102% of principal. The notes have returned 4.36% this year, the best among 4 local-currency callable bonds issued by the companyIndonesia - Tightening SpreadsAfter narrowing last week, spreads on Indonesian company dollar notes are now about 49 basis points tighter than a broader Asian index. For Indonesia’s credit wrap, click hereFor 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.
State mortgage programs offer thousands of dollars in student loan relief.
Toshiba board members planned to oust CEO Nobuaki Kurumatani before CVC Capital Partners launched a $20 billion buyout bid last week, telling him the day before the offer was announced they would replace him, people familiar with the matter said. Two members of Toshiba Corp's nomination committee, including board chairman Osamu Nagayama, met Kurumatani, himself a former CVC executive, and told him they intended to look for a new chief executive, three of the people said. While the board had not formally started the process of replacing Kurumatani, the plan was already in motion, the three said.
Apr.12 -- Lina Choi, senior vice president at Moody’s Investors Service, discusses Alibaba Group Holding Ltd.’s record fine over antitrust issues, her outlook for the company and for China’s tech sector. She speaks on “Bloomberg Markets: China Open.”
Coinbase has chosen to come to market via a direct listing, a relatively new option for companies wishing to go public, and one that is curiously suited to a crypto company
Our call of the day from Bank of America narrows down where investors see the most risk these days. Fingers are pointing at the world's most popular cryptocurrency.
Bitcoin is seen rising towards $70K by May according to several analysts interviewed by CoinDesk.