June 19 (Reuters) - China Dairy Corp Ltd:
* KEVIN YAU RESIGNED AS DIRECTOR
* APPOINTED ERIC LIN AS NON-EXECUTIVE DIRECTOR Source text for Eikon: Further company coverage:
June 19 (Reuters) - China Dairy Corp Ltd:
* KEVIN YAU RESIGNED AS DIRECTOR
* APPOINTED ERIC LIN AS NON-EXECUTIVE DIRECTOR Source text for Eikon: Further company coverage:
(Bloomberg) -- Britain’s Treasury and the Bank of England are weighing the potential creation of a central bank digital currency, joining authorities from China to Sweden exploring the next big step in the future of money.The government and central bank on Monday announced the creation of a task force to coordinate on the possibility of BOE-issued digital money for use by households and businesses. They will engage in discussions with stakeholders on the risks and benefits before making a decision.If approved, the digital currency would “exist alongside cash and bank deposits, rather than replacing them,” according to the statement.With modern technologies and the coronavirus accelerating the push toward cashless transactions, and crypto currencies such as Bitcoin gaining traction, central banks are taking action to make sure they don’t fall behind.In 2020, the Bahamas launched the Sand Dollar, making it among the world’s first sovereign-backed digital currencies. The European Central Bank and Sweden’s Riksbank have said they could follow suit around the middle of the decade.China is also considering a digital yuan, but the Federal Reserve has previously said it was not something the U.S. would rush into.The U.K. task force will be jointly chaired by BOE Deputy Governor Jon Cunliffe and the Treasury’s Director General of Financial Services, Katharine Braddick. A new CBDC division will be set up at the central bank.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 competition between Wang Xing’s Meituan and fellow tech billionaire Jack Ma’s Alibaba Group Holding Ltd. is turning into one of the great rivalries in Chinese business.While Alibaba is the dominant force in e-commerce with a global reputation, Wang, a generation younger, has built Meituan into a fearsome rival, the world’s largest delivery empire with ambitions to encroach on Alibaba’s home turf. There’s also years of bad blood between the two companies after an early alliance broke down.Now Wang, 42, has raised a record $10 billion to develop promising technologies like autonomous delivery vehicles and drone delivery to reduce labor costs and expand the footprint of Meituan’s food and e-commerce network. These investments, analysts say, will be key to supporting what Wang has previously called its “top priority”: community e-commerce, an arena where tech giants from the likes of Alibaba to JD.com Inc. and Pinduoduo Inc. are all seeking a foothold.“Wang Xing is a driven entrepreneur and calculated strategist,” said Michael Norris, a senior analyst with Shanghai-based consultancy AgencyChina. “Community group buying is a ‘must play, must win’ segment for Meituan.”Wang and other tech tycoons will need to tread carefully. Over the past six months, China’s antitrust watchdog has rolled out new laws giving them greater oversight of the internet sphere, and launched investigations into abuses like forced exclusive arrangements and offering preferential pricing to new customers. After Alibaba was slapped with a record $2.8 billion fine this month, investors now expect Meituan and its backer Tencent Holdings Ltd. to be next in the line of fire, given their dominance in meal delivery and other spheres of internet life as well as past brushes with the law.What Is Behind China’s Crackdown on Its Tech Giants: QuickTakeMeituan’s community e-commerce arm was among a handful of operators penalized in March for excessive subsidies, alongside units of Pinduoduo Inc. and Didi Chuxing. State media have called out the industry’s preoccupation with growing grocery deliveries instead of driving innovation, while the deaths of delivery riders in the past have also led to scrutiny of Meituan’s business practices. In January, it also shut down its crowd-sourced health insurance service after regulators tightened scrutiny over online insurance.The record fundraising -- the largest-ever new stock issuance by a Hong Kong-listed company -- appears to defy expectations that the days of unfettered expansion for Chinese internet entrepreneurs are over. The $10 billion raised will more than double Meituan’s cash, giving it the biggest war chest after Alibaba’s, to invest in new technologies like autonomous delivery and build infrastructure for online groceries. While the company didn’t single out the red-hot community commerce space in its deal term sheet Monday, investors expect Meituan to funnel capital into that sector to secure a slice of the pie.Wang’s firm, which has been cultivating autonomous delivery for years, will face stiff competition in this area from rivals including Didi and JD.com, which have also been exploring the technology. Alibaba, for its part, made its first trial drone delivery in 2015. Meituan’s efforts have accelerated since the Covid-19 outbreak last year and it’s so far deployed self-driving vehicles to deliver 35,000 grocery orders in Beijing. In Shenzhen, its drones have also delivered more than 1,000 orders as of mid-April since a pilot program kicked off in January.Wang, a coding guru whose methodical obsession with data and algorithms proved instrumental in humbling Alibaba’s rival meal service Ele.me, has openly telegraphed his ambitions. In a 2017 interview with local media, he said Meituan could join Alibaba and Tencent as the third member of a Chinese internet triumvirate in five to 10 years, due to the value it creates in food, travel and other services.“I don’t believe in setting limits for myself,” Wang said in the interview. “As long as we’re clear on our core purpose -- Who are we serving? What services do we offer? -- we will just keep trying different types of businesses.”But his past gambles have been somewhat hit or miss. An early foray into ride-hailing petered out when Chinese regulators cracked down on Didi. He bought Mobike in a deal valuing the startup at $3.4 billion in 2018, the height of China’s bike-sharing bubble, and has since had to scale back the business’s overseas operations. The travel division got sideswiped by Covid and lacks a roadmap to profitability against Trip.com Group Ltd. In all, Meituan has launched as many as 200 services over the years.“Wang is certainly a very ambitious tech executive,” said Brock Silvers, chief investment officer at private equity fund Kaiyuan Capital in Hong Kong. “For successful Chinese entrepreneurs, however, ambition can sometimes correlate to a lack of focus.”Now the serial entrepreneur, worth roughly $21.3 billion, is tooling up for his biggest battle yet, taking on Pinduoduo, JD.com and a host of nimbler startups in the field of groceries. As Meituan deepens its presence in e-commerce, the biggest rival standing in his way is Ma’s Alibaba.The animosity between Wang and Ma dates back more than half a decade. Alibaba -- an early investor in Meituan -- refused to put more money into the startup in mid-2015 because it wouldn’t fully integrate its app with the larger firm’s. In response, Wang turned to Alibaba’s arch-rival Tencent, which pledged $1 billion of funding, merged its delivery services with Meituan and allowed the combined company to operate independently, sidelining his one-time partner.Read more: The Greatest Delivery Empire on Earth Has Alibaba’s AttentionIn an interview with Bloomberg News published in 2019, Wang said he thought Ma had “an integrity problem,” citing the way he spun off digital payments subsidiary Alipay without the approval of Alibaba’s board. Instead, Wang called Amazon.com Inc. founder Jeff Bezos a role model, pointing to his willingness to defer profits and reinvest in new business.Meituan is now adopting that same philosophy, saying in March it expects to stay in the red for the coming quarters as it ventures into online groceries. In particular, it’s expanding aggressively into community e-commerce, where buyers in the same neighborhood enjoy bulk discounts on fresh produce. The market is estimated to reach nearly 121 billion yuan ($19 billion) this year, drawing heavy investments from other tech giants.“The cash burn in grocery will be quite brutal, just like with the ride-hailing wars,” said He Qi, a fund manager at Huatai Pinebridge Fund management. “Cash is a necessity in winning this one, and whoever is victorious will be reap great rewards because grocery shopping is a higher frequency transaction.”(Updates with share action chart in the fifth 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) -- U.S. stocks retreated from an all-time high as investors awaited the heart of the earnings season and more economic data later in the week. The dollar fell.Technology shares dragged down the S&P 500, which posted its biggest drop in almost four weeks. Tesla Inc. contributed the most to the decline as one of its electric cars that “no one” appeared to be driving crashed and killed two passengers. Small caps underperformed, with more than three-quarters of the stocks in the Russell 2000 closing lower. Copper prices surged to a seven-week high on prospects for strong demand and a pickup in inflation as economies rebound.In the U.S., the economic calendar is light this week until Thursday, with reports on unemployment claims and home sales among those scheduled for release. Robust economic data helped push stocks to another record last week despite concerns surrounding the spread of Covid-19 variants. Traders will look for further confirmation of the private sector’s recovery from the pandemic as the earnings season gathers pace. United Airlines Holdings Inc. and International Business Machines Corp. are among those with reports after the closing bell on Monday.“With a deluge of earnings activity this week from across industries, we may be in a bit of a holding pattern until investors digest any beats or misses on that front,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “Bottom line is that short-term volatility is typical when we’re knocking around market highs as traders look to uncover value.”For Matt Maley, chief market strategist for Miller Tabak + Co., the sharp drop in Bitcoin over the weekend is having an impact on trading as well.“Whenever a headline-grabbing asset sees a big decline at a time when the broad market stands at an expensive level, it usually has a negative impact on the stock market, even if it’s only short-lived,” he wrote.Here are some key events to watch this week:Apple’s first product unveiling of the year on Tuesday.Reserve Bank of Australia releases minutes of its policy meeting on Tuesday.EIA crude oil inventory report on Wednesday.European Central Bank rate decision and President Christine Lagarde briefing on Thursday.U.S. releases new home sales data.These are some of the main moves in markets:StocksThe S&P 500 fell 0.5% as of 4:03 p.m. New York timeThe Nasdaq 100 fell 1%The Dow Jones Industrial Average fell 0.3%The Russell 2000 Index fell 1.4%The MSCI World index fell 0.3%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.5% to 1.2037The British pound rose 1.1% to 1.3986The Japanese yen rose 0.6% to 108.17 per dollarBondsThe yield on 10-year Treasuries advanced 2.1 basis points to 1.601%Germany’s 10-year yield advanced 2.8 basis points to 0.235%Britain’s 10-year yield declined 0.9 basis points to 0.755%CommoditiesWest Texas Intermediate crude rose 0.5% to $63 a barrelGold futures fell 0.5% to $1,771/oz(An earlier story misstated the copper price move in the 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) -- Taiwan’s dollar posted its biggest daily advance since December after a U.S. Treasury report hinted that the Biden administration could exert greater pressure on the island’s central bank to allow the currency to appreciate.The local dollar rose 0.5% to close at 28.205 against the greenback, and was emerging Asia’s best-performing currency for the day. While the Treasury report on Friday didn’t label Taiwan as a currency manipulator, it said the U.S. will initiate “enhanced bilateral engagement” to address what it considers as “structural undervaluation” of the exchange rate.“Despite the relief of not being labeled a currency manipulator, the Treasury report still urged Taiwan authorities to limit FX intervention to exceptional circumstances,” said Ken Cheung, chief Asian FX strategist at Mizuho Bank Ltd. “This, alongside the strong exports, will help support the Taiwan dollar.”The Taiwan dollar has come under scrutiny as the tech-dependent economy posts a quicker recovery from the pandemic than most of its peers in Asia. Six of the 60 pages in the Treasury report were devoted to Taiwan, more than any other U.S. trading partner, in the Biden administration’s first foreign-exchange policy update.The report cites research published in November 2018 that assesses the Asian currency to be undervalued by as much as 21%. Taiwan made net foreign-exchange purchases of $39.5 billion in 2020, equivalent to 5.9% of its gross domestic product, according to the analysis.While Taiwan’s central bank doesn’t deny intervening in currency markets, it pushed back against aspects of the U.S. assessment. The Taiwan dollar is close to being at a balanced level based on the International Monetary Fund’s valuation model, it said, as it urged the U.S. to ease monitoring of trading partners during the Covid pandemic.Held Meetings“Yellen is pragmatic and prudent,” central bank governor Yang Chin-long told lawmakers Monday, when discussing the Treasury report. “We need to show more than just our sincerity about communicating with the U.S.”Taiwan has already held two meetings with the Treasury this year over its currency, Yang added. The central bank only intervenes when there are concerns about supply and demand in the market, he said.Regular late-session moves by state-backed banks to pare gains by Taiwan’s currency against the dollar are “a kind of intervention,” Governor Yang had told reporters in late March. For months, the currency could rise more than 1% during the day, only to pare back most of the advance at the close.While the U.S. didn’t label any economy as a currency manipulator, it also acknowledged that Taiwan, Switzerland and Vietnam all met the threshold. It insisted that it would maintain pressure on trading partners to redress trade imbalances with the U.S.“There will still be pressure on Asian central banks to ease back on their intervention activity, which would lead to greater appreciation pressure,” said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. “The easing of U.S. 10-year bond yields and the retreat in the dollar of late has also helped the Taiwan dollar’s move.”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 Bank of Canada is poised to pare back its asset purchases amid a stronger-than-expected economic recovery, taking one of the biggest steps yet by a developed country to reduce emergency levels of monetary stimulus.Governor Tiff Macklem is expected to cut the central bank’s weekly government bond purchases on Wednesday to C$3 billion ($2.4 billion), from the current pace of C$4 billion. Officials may also give clues to whether they expect to bring forward their timeline for interest rate hikes, with current guidance pointing to no move before 2023.The policy decision, due at 10 a.m. in Ottawa, is a pivotal one for the central bank. Its quantitative easing program is too large given the size of Canada’s bond market. Just on technical grounds, it needs to be pared back as the government’s financing requirements drop.At the same time, a case is growing for less stimulus. The economy is running at a much faster clip than the Bank of Canada has been projecting, forcing officials to start laying the groundwork for the start of policy normalization.“The economic outlook has improved markedly since January”, Dominique Lapointe, an economist at Laurentian Bank Securities Inc., said by email. “The Bank of Canada is ready to take its foot off the accelerator.”Officials won’t want to get too far ahead of other major central banks like the Federal Reserve, which has been wary to talk about scaling back. If the Bank of Canada moves alone, it could trigger a currency appreciation that would be self-defeating.To be sure, the Bank of Canada’s asset purchases have been more aggressive than others in the Group of Seven, at least relative to the size of the nation’s bond market.The central bank has bought about C$280 billion in Canadian government bonds over the past year, ballooning its balance sheet to around one-quarter of economic output. It now owns more than 40% of outstanding bonds and is on pace to go above 50% in a few months as Prime Minister Justin Trudeau’s government reduces its issuance by about C$90 billion this year, according to estimates by Ian Pollick, head of fixed income, currency and commodity research at Canadian Imperial Bank of Commerce.It’s a massive footprint that threatens to create financial distortions -- a concern that led Macklem to reduce minimum weekly purchases in October, from C$5 billion initially. At the time, officials characterized the taper as neutral in terms of stimulus, because they shifted purchases toward long-term bonds concurrently. The more the tapering takes place in the short end of the yield curve -- two-year and three-year bonds -- the less the impact on financial conditions.“In some ways they’re being forced into a taper,” Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets, said by phone.What Bloomberg Economics Says...“The economy is working through a third wave of Covid-19 and new restrictions, but the growth and labor market outlooks are still significantly stronger than the BoC envisioned in January, meeting the guideline for a reduction.”--Andrew Husby, economistFor the full report, click hereBut the improving economic outlook does give the central bank more scope to pare back now, and policy makers have been clear that a stimulus pullback is coming for reasons beyond those technical issues. The bank laid the ground rules for what that would look like in a speech last month by Deputy Governor Toni Gravelle, who said tapering will be “gradual and in measured steps.”What the central bank won’t do is touch its short-term benchmark interest rate, its primary monetary policy tool. Economists unanimously see the bank holding it unchanged at 0.25% at the announcement. Not only is the rate at historic lows, but the central bank has pledged not to raise it until all economic slack is full absorbed, so inflation can return sustainably to its 2% target.When that will be depends on a lot of guess work.Up until January, when the Bank of Canada last released economic forecasts, it projected that threshold wouldn’t be reached until 2023.The economy, however, has outperformed spectacularly relative to the Bank of Canada’s projections since then. As a result, markets are anticipating the central bank will bring forward its rate increase, with a 60% probability of a hike this time next year.There is scope for Macklem to push back against those expectations.Economic slack is hard to measure and that gives him leeway to argue faster growth doesn’t mean there will be less excess supply. The central bank can also express heightened concern about the uneven recovery in the labor market -- giving it even more discretion. Then there is the seriousness of the current wave of Covid-19 cases, which is the worst so far in parts of the country. That prompted Canada’s largest province, Ontario, to take its most aggressive steps yet to restrict the movement of people last week.“I think they will keep to this cautious optimism,” Dawn Desjardins, deputy chief economist at Royal Bank of Canada, said by phone.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.
Silver declined below the support at $25.85 and tested the next support at $25.65.
Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks' apparently stellar earnings last week. Kansas City Southern surged on the prospect of a bidding war after Canadian National offered about $30 billion for the U.S. railroad, some $5 billion more than an earlier offer from Canadian Pacific. Shares of airline operators and cruiseliners including JetBlue Airways, American Airlines, Norwegian Cruise Line and Carnival Corp, which were hammered last year during lockdowns but have climbed recently on the reopening hopes, fell around 5%.
Stocks have rebounded from lows in an incredibly short time. For novices who are investing for the first time this past year, it's all they know.
The student debt burden among older Americans is growing at an alarming rate.
Cathie Wood, the founder of ARK Invest, is taking Wall Street by storm with her unconventional thematic investing. Namely, she follows an innovative fund style to find hyper-growth stocks with game-changing technology. Certainly, her unique method is working. To be sure, five out of six ARK ETFs posted more than 100% returns in last year alone. Result? Her funds saw a massive inflow of $20.6 billion, according to data from Morningstar, Portfolio Insider, and Nasdaq. Recently, Wall Street saw a heavy rotation into value stocks. But don’t count Cathie Wood as one of them. Instead, she is doubling down her bets on these innovative companies. “The benchmarks are filling up with value traps” due to the pace of innovation in fields including artificial intelligence and robotics, Wood said. “We think the big risk is in the benchmarks, not what we’re doing.” Billionaire Cathie Wood's predictions are must-follow because of her historic returns in the last three years -- with her picks soaring many times above their original share prices. Case in point: Last year, Ms. Wood’s ARK Genomic Revolution ETF, ARK Innovation ETF, and ARK Next Generation Internet ETF reaped returns of 159%, 203%, and 157%, respectively. Now, here are four technology stocks with huge potential that Cathie Wood has bought for her funds: 1. Coinbase (NASDAQ: COIN) Surely, Cathie Wood is bullish on cryptocurrency. She has been buying hand over fist in the largest cryptocurrency exchange and digital wallet service provider Coinbase. On the day when Coinbase made its public debut, ARK Invest scooped up 749,205 shares. A few days later, it added another 340,273 shares (worth nearly $112,970,000 million) to its position. Never shy from making bold predictions, Wood believes that digital wallets can develop into the most valuable technology of this era, pointing out its unprecedented speed of organic growth. "Digital wallets could become the most valuable technology developments per user of almost anything. We're pretty excited about that. If you were to draw a graph as we did in our big ideas showing how JPMorgan Chase & Co. (NYSE: JPM) got to these levels, it was one acquisition after the other, whereas Cash App and Venmo, because they are viral in nature, have gotten there organically," Cathie Wood said. Recent reports have supported Wood’s prediction. The digital wallet payments have surpassed the physical card for usage at contactless in-store payments and at the point-of-sale (POS) in 2020, according to the Global Payments Report. Plus, in-store cash payments fell by at least 50% in 2020 in advanced economies. 2. Unity Software (NYSE: U) A real-time 3D development platform Unity Software is trading at a bargain-basement price, in Cathie Wood’s view. She has been boosting her Unity Software stake over the last two months as the stock fell by 34% year to date. Despite the recent selloff, the company’s future fundamentals look strong based on revenue growth projections. Unity Software expects 2021 revenue in the range of $950 million to $970 million, in line with the company’s plan of sustaining 30% revenue growth in the long run. Unity CEO John Riccitiello said: “As the leader in creating and operating tools for the world of real-time 3D content, we continue to invest with the intent to capture what we believe is a substantial opportunity ahead in 2021 and years beyond.” 3. Shopify (NYSE: SHOP) Wood believes that Shopify can be as big as online retail giant Amazon (NASDAQ: AMZN) someday. As a result, Cathie Wood saw the dip in Shopify stock as a buying opportunity. Her firm added to its existing stake in e-commerce platform last week, according to Portfolio Insider. "We're trying to figure out how Amazon is going to deal with this notion of individuals seeing something on Instagram or elsewhere on Facebook or on Twitter, or on Snap and just buying there," Wood said. "That's a Shopify-enabled commerce opportunity and we think it's going to be big." Recently, Shopify’s stock price pulled back slightly from its recent all-time high of $1,500 that it had hit early in February. Regardless of the short-term price movements, SHOP’s stock price upside is likely to be tightly wounded to its growth trends. So far, so good: Shopify’s fourth-quarter revenue jumped 94% while 2020 revenue surged 86%. 4. Sea Limited (NYSE: SE) Cathie Wood has also been on a shopping spree with Sea Limited this year. The biggest lure of Sea Limited is how they can integrate dozens of their businesses into each other. Sea Limited has tentacles in eSports, mobile gaming, e-commerce, digital payments, and food delivery services. And the company is aggressively expanding its market penetration outside its home country in China, especially in Latin America and Southeast Asia. These segments have generated triple-digit revenue growth for Sea Limited. As a result, its consolidated revenue grew more than 100% in 2020, and it expects to extend that momentum into 2021. Cathie Wood first initiated a position in Sea Limited during the final quarter of 2019, and she has only continued to add her stake over time. See more from BenzingaClick here for options trades from Benzinga84% Of Warren Buffett's Portfolio In 2021 Is In These 3 Categories© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Carry traders blindsided by bouts of dollar strength are looking beyond the currency to fund their bets -- even if it means giving up some returns.Borrowing dollars to buy assets in higher-yielding currencies, a usually profitable strategy in emerging markets, proved loss-making in the first quarter as U.S. yields surged. That pushed money managers including Fidelity International and AMP Capital to cut dollar-short positions and fund their arbitrage with euro or yen, given the low interest rates in those currencies.While that helped traders protect their carry returns, it also underscored the need to have a broad basket of funding currencies to tide over dollar volatility. Now, even as the dollar weakens again and Treasury yields moderate, they continue to finance part of their emerging-market investments with other currencies.“Having a diversified basket of funding currencies against emerging-market long carry positions has the advantages of lower risk and an overall better Sharpe ratio on the trade versus one that’s funded solely out of the U.S. dollar,” said Nader Naeimi, the head of dynamic markets at AMP in Sydney. “I am happy to stick with a diversified basket.”Returns DichotomyA Bloomberg index of carry-trade returns from eight developing-nation currencies, funded by short positions in the greenback, fell 3.1% in the first quarter, the first decline in a year.Meanwhile, a strategy that involves borrowing the lowest-yielding currencies to invest in higher-yielding assets jumped 3.4% in the first three months of the year.At the core of this divergence was the dollar’s resurgence. A near-consensus call at the end of last year for a weaker U.S. currency came undone as the prospects for a sharp recovery in the world’s largest economy drove 10-year Treasury yields up by the most since 2016. With an accelerated vaccine rollout and unprecedented fiscal stimulus, the rebound is set to outpace its developed peers.While the Federal Reserve has been reluctant to push back against higher yields, the European Central Bank has ramped up bond-buying and the Bank of Japan has pledged to keep the yield curve stable and low.Beyond DollarWhile the start of the second quarter has flipped that trade -- dollar-funded carry trades are outperforming again with a 2.2% return this month -- traders still bet on volatility in the U.S. currency. So last quarter’s tactical dash into the euro and yen as funding currencies is now morphing into a strategic choice to reduce dollar dependency.Fidelity International, which sees carry opportunities in Brazilian real and Ghanaian cedi, prefers “to diversify the funding of these positions away from exclusively using the U.S. dollar,” said Paul Greer, a money manager in London at the firm, which oversees about $700 billion.“In the near term, we think the dollar will appreciate against G10 peers as the U.S. continues to demonstrate global leadership on growth recovery,” he said. “Looking further ahead, we expect the dollar to resume its medium term trend of depreciation, which should be supportive of the EM carry trade.”The U.S. currency has strengthened against 17 of 22 emerging-market currencies this year. In comparison, the euro has dropped against nine of the same group and the yen is weaker against 18 of those currencies.Investors looking for interest-rate arbitrage in emerging markets need not necessarily go to Japan or Europe to raise funds. There are plenty of low-rate currencies within the developing world that can do the job.Greer of Fidelity uses the Polish zloty and Hungarian forint as carry-funding currencies. Alessio de Longis, the New York-based head of tactical asset-allocation solutions at Invesco Ltd., drives his wagers with short positions in the currencies of South Korea, Taiwan, Chile and the Czech Republic. His basket is gaining this year, even though his long positions included some of the world’s worst-performing currencies such as the Brazilian real and Turkish lira.World’s Worst Currencies Pay Off for Debt Veteran at Invesco Even those who continue to fund their carry trades mostly with the dollar are turning wary of that strategy.”It’s been pretty painful,” said Edwin Gutierrez, head of emerging-market sovereign debt at Aberdeen Standard Investments in London. “The second quarter could be more of the same.”(Updates carry return funded by short-dollar positions in ninth 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) -- Christopher Giancarlo, the former chairman of the U.S. Commodity Futures Trading Commission who’s known as “Crypto Dad” for his early embrace of digital assets, joined the board of cryptocurrency lender BlockFi.Giancarlo, 61, headed the CFTC when the Chicago Board Options Exchange and CME Group Inc. first offered Bitcoin futures contracts. He gained tens of thousands of followers on Twitter after his February 2018 congressional testimony in which he advocated for a “do no harm” regulatory stance toward blockchain products, the comments that earned him his nickname.“It’s been fascinating to see how the whole ecosystem around crypto is morphing so fast,” Giancarlo said in an interview. There’s a healthy combination of retail and institutional interest in the market for digital assets such as Bitcoin and Ether, he said. Yet the banks have been slow to embrace the new asset class.“The opportunity for the BlockFis of the world is the traditional lenders haven’t showed up yet, and yet there’s incredible demand” for dollars and other fiat currency to be used to buy crypto, he said. “The future of money and things of value is digital.”Giancarlo joins a range of former regulators and Wall Street executives who have jumped to industry roles, including Ben Lawsky, the former head of the New York State Department of Financial Services who’s on the board of Ripple Labs Inc. Gary Cohn, the former president of Goldman Sachs Group Inc., serves on the board of blockchain startup Spring Labs.Read More: Crypto Shadow Banking Explained and Why 12% Yields Are CommonSome of the largest non-bank firms in cryptocurrency, including BitGo, BlockFi, Galaxy Digital and Genesis, are stepping up to meet investor demand for dollars amid a longstanding wariness by banks to lend to individuals or companies associated with Bitcoin and other digital assets. They’re lending to hedge funds that need cash to buy Bitcoin for a trade with minimal risk that has been paying out annualized returns that have recently hit 20% to 40%.BlockFi is a akin to a bank for the virtual-currency realm, paying interest on crypto deposits and making cash loans using those holdings as collateral. It also offers a credit card with Bitcoin rewards, as well as a Bitcoin Trust that gives investors exposure without requiring actual purchases of the digital currency.Giancarlo recalled his time at the CFTC when Cboe and CME Group self-certified the first U.S. Bitcoin futures contracts.“It was not without its controversy,” he said, adding that Thomas Peterffy, chairman of Interactive Brokers, placed a full-page ad in the Wall Street Journal decrying the move and saying words to the effect of, “Don’t let Bitcoin futures come about or the western world will end.” Even Wall Street’s futures group, the Futures Industry Association, was against the idea, he said.While Cboe dropped its Bitcoin contract, CME Group’s has been a success, and the exchange recently added Ether futures.Giancarlo also serves as senior counsel to law firm Willkie Farr & Gallagher LLP, is on the advisory board of the Chamber of Digital Commerce and acts as an independent director of the American Financial Exchange. He was recently nominated to the board of Nomura Holdings Inc. and is a co-founder of the Digital Dollar Project.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.
Overstock CEO Jonathan “JJ” Johnson says he's hoping that one day tZero, a much smaller trading platform that offers some services similar to Coinbase, will be a legitimate rival to the crypto behemoth that just listed on the Nasdaq Inc. last Wednesday with a valuation that briefly hit around $100 billion.
The DOGE frenzy appears to have spread to decentralized finance, where several imitator tokens have chalked up staggering single-day gains.
China will suspend the ability of foreign investors to trade if they cause serious market volatility through massive capital flows in a short period of time, a senior Chinese regulatory official has said. "Many people are asking whether foreign ownership will affect the stability of our stock market," said Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, at the Boao Forum for Asia on Monday. "What if massive amounts of foreign capital come in and go out? I can tell you that we will take precautionary measures." Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, says regulators are wary about the potential for market disruption by foreign hedge funds. Photo: Simon Song alt=Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, says regulators are wary about the potential for market disruption by foreign hedge funds. Photo: Simon Song> "We had a provision when we designed the Stock Connect that if a foreign investor comes in and causes significant volatility in the stock market, we can temporarily stop it from trading," he said. Stock Connect has a daily quota restricting the maximum net value of cross-boundary trading flows, with daily "northbound" flows into China limited to 52 billion yuan (US$7.9 billion) and "southbound" flows to Hong Kong capped at 42 billion yuan. Besides Stock Connect, foreigners can also invest in China A-shares via the Qualified Foreign Institutional Investor and RMB Qualified Foreign Institutional Investor programmes. Fang's comments come as foreign investors have increased their purchases of Chinese stocks, encouraged by liberalised rules last year that gave more leeway to overseas funds to repatriate their dividends and capital gains from the world's second-largest stock market. Following the easing of rules last year, a survey by Standard Chartered released last month showed 59 per cent of respondents would increase their allocations of Chinese assets in the coming 12 months. Foreign investors bought a net 16.3 billion yuan worth of Chinese A-shares via Stock Connect on Monday, the second highest net purchases this year, after having bought a net 24.7 billion yuan last week, exceeding the 18.7 billion for the month of March as a whole, according to the official Securities Daily. Driven by declining short-term interest rates and upbeat corporate earnings, the A-share market is expected to "continue to rebound", said Southwestern Securities in a note. But if capital was to start flowing out on a massive scale, there is a risk the Chinese currency would depreciate and trigger further capital outflows. This happened on a modest scale in February and March, with the yuan's exchange rate against the US dollar dropping more than 1 per cent as a result. Last month, FTSE Russell, the global index, data and analytics provider, added China A-Shares to the FTSE MPF Index Series, the core equity benchmarks used by the Mandatory Provident Fund industry. China's domestic equities had already joined MSCI's benchmark indexes in 2017. At the end of last month, foreigners owned 5 per cent of Chinese A-shares, still a "relatively low" level, said Fang. "With more foreign capital coming in recent years, our stock market has been running much smoother, as foreign capital is playing a more important role in market pricing ... We will continue to create conditions to lure more foreign investments," said Fang. Chinese authorities have a "clear view" about the priorities of foreign investors and are not worried about individual investors, whose proportion of overall stock ownership is very small and will not affect the financial stability, Fang said. The country also welcomes foreign mutual funds, pension funds and insurance companies, which have the highest proportion of A-shares among foreign investors. But Chinese regulators are wary about the potential for market disruption by foreign hedge funds and so their operations will be watched closely, said Fang. "Once massive volatility is caused by some investors, their trading will be suspended to prevent further volatility," he said. This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
Business owners around Minneapolis, where the Derek Chauvin trial has been held, have been on edge over the last year.
A group of Democratic Senators, led by Elizabeth Warren (D-MA) and Raphael Warnock (D-GA), sent a letter urging the Education Department (ED) to restore defaulted student loans to on-time status amid the ongoing payment pause, Yahoo Finance has learned.
Just last Friday, the S&P 500 had closed at a record high. This week, the index can’t seem to find its footing.
(Bloomberg) -- A drop in cryptocurrency-linked stocks in the wake of Bitcoin’s slide and Coinbase Global Inc.’s choppy debut is stirring a rallying cry from optimists who reject fears that the sector has peaked.A global, Bloomberg-curated basket of equities linked to crypto trading or Bitcoin mining fell some 9% over the past week, paring 2021’s climb to about 130%. A weekend Bitcoin plunge rattled crypto mania, but the token has since pared some losses and remains up 690% over the past year.“The public market validation of Bitcoin and the entire space from Coinbase’s listing will encourage people who can invest in the markets to do so,” said Jehan Chu, managing partner at crypto adviser Kenetic Capital in Hong Kong. There are signs retail investors took advantage of Bitcoin’s fall, he added.Bitcoin climbed as much as 2.3% on Monday, and was trading at $56,691 as of 6:08 a.m. in New York.Day traders have also pushed up stocks such as Bitcoin miner Marathon Digital Holdings Inc. and crypto broker Voyager Digital Ltd., which are up at least 8,900% in the past year. For some, the $68 billion market value for digital-token exchange Coinbase justifies bets on a watershed advance in crypto adoption. Others fear the listing and Bitcoin’s gyrations are part of an unsustainable, stimulus-fueled frenzy.“Passions run deep” on the short-term crypto outlook “but dips are clearly supported,” Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note Monday.Coinbase, the biggest U.S. cryptocurrency exchange, was down 2.6% in U.S. pre-market trading after closing at $342 on Friday, off a peak of $429.54 hit in the first few minutes of its April 14 debut. Marathon and Voyager lost about 20% last week.On Monday in Asia, shares in firms such as Japan’s Monex Group Inc., which owns a crypto exchange, and Woori Technology Investment Co. -- which has a stake in a leading South Korean digital-token broker -- were in the red. Cryptocurrency-linked stocks also fell in the U.S. premarket, with Riot Blockchain Inc. down 8.4% and Marathon slipping 7.2%Still, analysts who have begun covering Coinbase are bullish, on average penciling in a 52% climb over the next year. The firm’s Chief Executive Officer Brian Armstrong described the listing as a shift in legitimacy for the entire cryptocurrency industry.Sell-SideThe fact that more sell-side analysts will be forced to engage with the digital-token sector is a positive development for it, according to PwC’s Hong Kong-based Global Crypto Leader Henri Arslanian.“It forces now the sell-side firms to cover Coinbase and crypto in a more practical and detailed way,” Arslanian said. “That’s going to bring not only more experience but also more expertise in the asset class.”Many pitfalls remain: Bitcoin’s boom could yet turn to bust, and regulators are poised to tighten oversight of digital tokens and related businesses as they achieve more mainstream acceptance.But for now the cryptocurrency craze continues. For instance, Dogecoin -- a token created as a joke -- nearly tripled to a market value of about $50 billion on Friday. Demand was so brisk that investors trying to trade it on Robinhood crashed the site.“It’s still early in the game,” said Dave Chapman, executive director with Hong Kong-based BC Technology Group Ltd., which operates the digital-asset platform OSL. “Opportunity remains for investors to participate and secure a first-mover advantage.”(Adds Bitcoin price and U.S. pre-market trading data)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.
Investor euphoria has gone of the boil in the U.S. stock market. U.S. equities had their biggest outflows last week since mid-November and the fifth largest since 2008, according to a BofA Global Research report on Tuesday. Investors sold a net $5.2 billion in U.S. equities, with retail clients being the only buyers last week as the S&P 500 index rose to an all-time high.